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110th CONGRESS

2d Session

H. R. 1424

In the Senate of the United

States,

October 1 (legislative

day, September 17), 2008.

Amendments:

That the bill from the House of Representatives

(H.R. 1424) entitled An Act to amend section 712 of the Employee

Retirement Income Security Act of 1974, section 2705 of the Public Health

Service Act, section 9812 of the Internal Revenue Code of 1986 to require

equity in the provision of mental health and substance-related disorder

benefits under group health plans, to prohibit discrimination on the basis of

genetic information with respect to health insurance and employment, and for

other purposes., do pass with the following

Strike all after

the enacting clause and insert the

following:

A

Emergency Economic

Stabilization

1.
Short title and table of

contents

(a)

Short

title

This division may be

cited as the Emergency Economic

Stabilization Act of 2008.

(b)

Table of

contents

The table of contents for this division is as

follows:

Sec. 1. Short title and table

of contents.

Sec. 2. Purposes.

Sec. 3.

Definitions.

TITLE I—Troubled Assets Relief

Program

Sec. 101. Purchases of troubled

assets.

Sec. 102. Insurance of troubled

assets.

Sec. 103.

Considerations.

Sec. 104. Financial Stability

Oversight Board.

Sec. 105. Reports.

Sec. 106. Rights; management;

sale of troubled assets; revenues and sale proceeds.

Sec. 107. Contracting

procedures.

Sec. 108. Conflicts of

interest.

Sec. 109. Foreclosure

mitigation efforts.

Sec. 110. Assistance to

homeowners.

Sec. 111. Executive

compensation and corporate governance.

Sec. 112. Coordination with

foreign authorities and central banks.

Sec. 113. Minimization of

long-term costs and maximization of benefits for taxpayers.

Sec. 114. Market

transparency.

Sec. 115. Graduated authorization to

purchase.

Sec. 116. Oversight and

audits.

Sec. 117. Study and report on

margin authority.

Sec. 118. Funding.

Sec. 119. Judicial review and

related matters.

Sec. 120. Termination of

authority.

Sec. 121. Special Inspector

General for the Troubled Asset Relief Program.

Sec. 122. Increase in statutory

limit on the public debt.

Sec. 123. Credit

reform.

Sec. 124. HOPE for Homeowners

amendments.

Sec. 125. Congressional

Oversight Panel.

Sec. 126. FDIC

authority.

Sec. 127. Cooperation with the

FBI.

Sec. 128. Acceleration of

effective date.

Sec. 129. Disclosures on

exercise of loan authority.

Sec. 130. Technical

corrections.

Sec. 131. Exchange

Stabilization Fund reimbursement.

Sec. 132. Authority to suspend

mark-to-market accounting.

Sec. 133. Study on

mark-to-market accounting.

Sec. 134.

Recoupment.

Sec. 135. Preservation of

authority.

Sec. 136. Temporary increase in

deposit and share insurance coverage.

TITLE II—Budget-related

provisions

Sec. 201. Information for

congressional support agencies.

Sec. 202. Reports by the Office

of Management and Budget and the Congressional Budget Office.

Sec. 203. Analysis in

President’s Budget.

Sec. 204. Emergency

treatment.

TITLE III—Tax

Provisions

Sec. 301. Gain or loss from

sale or exchange of certain preferred stock.

Sec. 302. Special rules for tax

treatment of executive compensation of employers participating in the troubled

assets relief program.

Sec. 303. Extension of

exclusion of income from discharge of qualified principal residence

indebtedness.

2.
Purposes
The purposes of this Act are—

(1)to immediately provide authority and

facilities that the Secretary of the Treasury can use to restore liquidity and

stability to the financial system of the United States; and

(2)to ensure that such

authority and such facilities are used in a manner that—

(A)protects home values,

college funds, retirement accounts, and life savings;

(B)preserves homeownership

and promotes jobs and economic growth;

(C)maximizes overall returns

to the taxpayers of the United States; and

(D)provides public

accountability for the exercise of such authority.

3.
Definitions
For purposes of this Act, the following

definitions shall apply:

(1)

Appropriate committees

of Congress

The term appropriate committees of

Congress means—

(A)the Committee on Banking,

Housing, and Urban Affairs, the Committee on Finance, the Committee on the

Budget, and the Committee on Appropriations of the Senate; and

(B)the Committee on

Financial Services, the Committee on Ways and Means, the Committee on the

Budget, and the Committee on Appropriations of the House of

Representatives.

(2)

Board
The

term Board means the Board of Governors of the Federal Reserve

System.

(3)

Congressional support

agencies

The term

congressional support agencies means the Congressional Budget

Office and the Joint Committee on Taxation.

(4)

Corporation
The

term Corporation means the Federal Deposit Insurance

Corporation.

(5)

Financial

institution

The term financial institution means any

institution, including, but not limited to, any bank, savings association,

credit union, security broker or dealer, or insurance company, established and

regulated under the laws of the United States or any State, territory, or

possession of the United States, the District of Columbia, Commonwealth of

Puerto Rico, Commonwealth of Northern Mariana Islands, Guam, American Samoa, or

the United States Virgin Islands, and having significant operations in the

United States, but excluding any central bank of, or institution owned by, a

foreign government.

(6)

Fund
The

term Fund means the Troubled Assets Insurance Financing Fund

established under section 102.

(7)

Secretary
The

term Secretary means the Secretary of the Treasury.

(8)

TARP
The

term TARP means the Troubled Asset Relief Program established

under section 101.

(9)

Troubled

assets

The term troubled assets means—

(A)residential or commercial

mortgages and any securities, obligations, or other instruments that are based

on or related to such mortgages, that in each case was originated or issued on

or before March 14, 2008, the purchase of which the Secretary determines

promotes financial market stability; and

(B)any other financial

instrument that the Secretary, after consultation with the Chairman of the

Board of Governors of the Federal Reserve System, determines the purchase of

which is necessary to promote financial market stability, but only upon

transmittal of such determination, in writing, to the appropriate committees of

Congress.

<enum>I</enum><header>Troubled Assets Relief <p> Program</header> <p> <section id="H2D170E062DD1496CB656DF7E8B977208"><enum>101.</enum><header>Purchases of troubled <p> assets</header> <p> <subsection display-inline="no-display-inline" id="HF6C96D4609234F69A325004EE9A82E6F"><enum>(a)</enum><header>Offices; <p> Authority</header> <p> <paragraph commented="no" id="H3CD735DA7E1C4454BBDD9ED866F14300"><enum>(1)</enum><header>Authority</header><text>The <p> Secretary is authorized to establish the Troubled Asset Relief Program (or <p> <quote>TARP</quote>) to purchase, and to make and fund commitments to purchase, <p> troubled assets from any financial institution, on such terms and conditions as <p> are determined by the Secretary, and in accordance with this Act and the <p> policies and procedures developed and published by the Secretary.</text> <p> </paragraph><paragraph commented="no" id="id501F55AF2AC64298B9571EF9CC76B174"><enum>(2)</enum><header>Commencement of <p> program</header><text>Establishment of the policies and procedures and other <p> similar administrative requirements imposed on the Secretary by this Act are <p> not intended to delay the commencement of the TARP.</text> <p> </paragraph><paragraph id="HC3EE127260184074B4834FF9B98BA19"><enum>(3)</enum><header>Establishment of <p> Treasury office</header> <p> <subparagraph id="HE6E7403BE29F4F91879DC0EC9CF075A3"><enum>(A)</enum><header>In <p> general</header><text>The Secretary shall implement any program under paragraph <p> (1) through an Office of Financial Stability, established for such purpose <p> within the Office of Domestic Finance of the Department of the Treasury, which <p> office shall be headed by an Assistant Secretary of the Treasury, appointed by <p> the President, by and with the advice and consent of the Senate, except that an <p> interim Assistant Secretary may be appointed by the Secretary.</text> <p> </subparagraph><subparagraph id="H5F9CDF46624541BB9368EF415D26ED70"><enum>(B)</enum><header>Clerical <p> amendments</header> <p> <clause id="id058C7AB124F94A2DB98100B439A7D96F"><enum>(i)</enum><header>Title <p> 5</header><text><external-xref legal-doc="usc" parsable-cite="usc/5/5315">Section 5315</external-xref> of title 5, United States Code, is amended in the <p> item relating to Assistant Secretaries of the Treasury, by striking <p> <quote>(9)</quote> and inserting <quote>(10)</quote>.</text> <p> </clause><clause id="id3578DC6BF3A1467096E59F0B667C9866"><enum>(ii)</enum><header>Title <p> 31</header><text><external-xref legal-doc="usc" parsable-cite="usc/31/301">Section 301(e)</external-xref> of title 31, United States Code, is amended by <p> striking <quote>9</quote> and inserting <quote>10</quote>.</text> <p> </clause></subparagraph></paragraph></subsection><subsection id="HDC6DFD53D81445678C386F52E4EF5656"><enum>(b)</enum><header>Consultation</header><text display-inline="yes-display-inline">In exercising the authority under this <p> section, the Secretary shall consult with the Board, the Corporation, the <p> Comptroller of the Currency, the Director of the Office of Thrift Supervision, <p> the Chairman of the National Credit Union Administration Board, and the <p> Secretary of Housing and Urban Development.</text> <p> </subsection><subsection id="H9682647AA5CB4961A3DF5678F29E17C7"><enum>(c)</enum><header>Necessary <p> Actions</header><text>The Secretary is authorized to take such actions as the <p> Secretary deems necessary to carry out the authorities in this Act, including, <p> without limitation, the following:</text> <p> <paragraph id="HF50029FC9D784910B62D61B03BDBCB55"><enum>(1)</enum><text>The Secretary shall have <p> direct hiring authority with respect to the appointment of employees to <p> administer this Act.</text> <p> </paragraph><paragraph id="HCE59B3CC601F4C75A30201A759B8A0EA"><enum>(2)</enum><text>Entering into contracts, <p> including contracts for services authorized by <external-xref legal-doc="usc" parsable-cite="usc/5/3109">section 3109</external-xref> of title 5, United <p> States Code.</text> <p> </paragraph><paragraph id="H8FBAE98B5BA546DE916C1EB4E001B4ED"><enum>(3)</enum><text>Designating financial <p> institutions as financial agents of the Federal Government, and such <p> institutions shall perform all such reasonable duties related to this Act as <p> financial agents of the Federal Government as may be required.</text> <p> </paragraph><paragraph id="H986FA5C9A34A4E6BB33200F0837B4F30"><enum>(4)</enum><text>In order to provide the <p> Secretary with the flexibility to manage troubled assets in a manner designed <p> to minimize cost to the taxpayers, establishing vehicles that are authorized, <p> subject to supervision by the Secretary, to purchase, hold, and sell troubled <p> assets and issue obligations.</text> <p> </paragraph><paragraph id="HE05ACB2D90D2429EB1912F6BFCDE4647"><enum>(5)</enum><text>Issuing such regulations <p> and other guidance as may be necessary or appropriate to define terms or carry <p> out the authorities or purposes of this Act.</text> <p> </paragraph></subsection><subsection commented="no" id="HFC4C96B4D3F549DEA7FCCD9DDBF62F26"><enum>(d)</enum><header>Program <p> guidelines</header><text>Before the earlier of the end of the 2-business-day <p> period beginning on the date of the first purchase of troubled assets pursuant <p> to the authority under this section or the end of the 45-day period beginning <p> on the date of enactment of this Act, the Secretary shall publish program <p> guidelines, including the following:</text> <p> <paragraph commented="no" id="H15E98A50500B43C28B85BDB0C22C6F29"><enum>(1)</enum><text>Mechanisms for purchasing <p> troubled assets.</text> <p> </paragraph><paragraph commented="no" id="HE1E155B2A3DF462EBB4613F7DC002BB5"><enum>(2)</enum><text>Methods for pricing and <p> valuing troubled assets.</text> <p> </paragraph><paragraph commented="no" id="HBB96AF9B0CC14B26A8B450A05F8C120"><enum>(3)</enum><text>Procedures for selecting <p> asset managers.</text> <p> </paragraph><paragraph commented="no" id="HAF33C796C48D47449F265630B005382"><enum>(4)</enum><text>Criteria for identifying <p> troubled assets for purchase.</text> <p> </paragraph></subsection><subsection commented="no" id="H9C47836AF5FA4BA789003E2935A15D48"><enum>(e)</enum><header>Preventing unjust <p> enrichment</header><text>In making purchases under the authority of this Act, <p> the Secretary shall take such steps as may be necessary to prevent unjust <p> enrichment of financial institutions participating in a program established <p> under this section, including by preventing the sale of a troubled asset to the <p> Secretary at a higher price than what the seller paid to purchase the asset. <p> This subsection does not apply to troubled assets acquired in a merger or <p> acquisition, or a purchase of assets from a financial institution in <p> conservatorship or receivership, or that has initiated bankruptcy proceedings <p> under title 11, United States Code.</text> <p> </subsection></section><section id="id1CC85E3BDD2F4195986EF8E973C740EF"><enum>102.</enum><header>Insurance of troubled <p> assets</header> <p> <subsection id="idDE25A2D0B12447148C54DA48C8A3B73C"><enum>(a)</enum><header>Authority</header> <p> <paragraph id="id00543E44B4F94B6A855E1E2AC2A6DED1"><enum>(1)</enum><header>In <p> general</header><text>If the Secretary establishes the program authorized under <p> section 101, then the Secretary shall establish a program to guarantee troubled <p> assets originated or issued prior to March 14, 2008, including mortgage-backed <p> securities.</text> <p> </paragraph><paragraph id="idA85B6238A32A4300B419B9ED508273FE"><enum>(2)</enum><header>Guarantees</header><text>In <p> establishing any program under this subsection, the Secretary may develop <p> guarantees of troubled assets and the associated premiums for such guarantees. <p> Such guarantees and premiums may be determined by category or class of the <p> troubled assets to be guaranteed.</text> <p> </paragraph><paragraph id="id049474F6BA444AF09642EBFD9B5AFDC6"><enum>(3)</enum><header>Extent of <p> guarantee</header><text>Upon request of a financial institution, the Secretary <p> may guarantee the timely payment of principal of, and interest on, troubled <p> assets in amounts not to exceed 100 percent of such payments. Such guarantee <p> may be on such terms and conditions as are determined by the Secretary, <p> provided that such terms and conditions are consistent with the purposes of <p> this Act.</text> <p> </paragraph></subsection><subsection id="id23E288BE15504A398EDAF507026C14F1"><enum>(b)</enum><header>Reports</header><text>Not <p> later than 90 days after the date of enactment of this Act, the Secretary shall <p> report to the appropriate committees of Congress on the program established <p> under subsection (a).</text> <p> </subsection><subsection id="id882E499670504C7099F798B93EB2EF86"><enum>(c)</enum><header>Premiums</header> <p> <paragraph id="id31188489A0BE48838AB1DB13EA2964CE"><enum>(1)</enum><header>In <p> general</header><text>The Secretary shall collect premiums from any financial <p> institution participating in the program established under subsection (a). Such <p> premiums shall be in an amount that the Secretary determines necessary to meet <p> the purposes of this Act and to provide sufficient reserves pursuant to <p> paragraph (3).</text> <p> </paragraph><paragraph id="id50507E1BCF7B41218ADF01A57990B000"><enum>(2)</enum><header>Authority to base <p> premiums on product risk</header><text>In establishing any premium under <p> paragraph (1), the Secretary may provide for variations in such rates according <p> to the credit risk associated with the particular troubled asset that is being <p> guaranteed. The Secretary shall publish the methodology for setting the premium <p> for a class of troubled assets together with an explanation of the <p> appropriateness of the class of assets for participation in the program <p> established under this section. The methodology shall ensure that the premium <p> is consistent with paragraph (3).</text> <p> </paragraph><paragraph id="idD3E372B8606B42D4989CA6FDE9CC66DA"><enum>(3)</enum><header>Minimum <p> level</header><text>The premiums referred to in paragraph (1) shall be set by <p> the Secretary at a level necessary to create reserves sufficient to meet <p> anticipated claims, based on an actuarial analysis, and to ensure that <p> taxpayers are fully protected.</text> <p> </paragraph><paragraph id="idA4B03399E4414F9994EA77518D22AEFA"><enum>(4)</enum><header>Adjustment to purchase <p> authority</header><text>The purchase authority limit in section 115 shall be <p> reduced by an amount equal to the difference between the total of the <p> outstanding guaranteed obligations and the balance in the Troubled Assets <p> Insurance Financing Fund.</text> <p> </paragraph></subsection><subsection id="idDEF5226FD80C4E4EA60053EC0A6A2DC5"><enum>(d)</enum><header>Troubled assets <p> insurance financing fund</header> <p> <paragraph id="idCD319EA2D0934AC1802AE86B55ECDF23"><enum>(1)</enum><header>Deposits</header><text>The <p> Secretary shall deposit fees collected under this section into the Fund <p> established under paragraph (2).</text> <p> </paragraph><paragraph id="id4571444AD9BD49ED8288EF474D4C14A1"><enum>(2)</enum><header>Establishment</header><text>There <p> is established a Troubled Assets Insurance Financing Fund that shall consist of <p> the amounts collected pursuant to paragraph (1), and any balance in such fund <p> shall be invested by the Secretary in United States Treasury securities, or <p> kept in cash on hand or on deposit, as necessary.</text> <p> </paragraph><paragraph id="idDAA73FEE07E34CDFA91A171851A867CA"><enum>(3)</enum><header>Payments from <p> fund</header><text>The Secretary shall make payments from amounts deposited in <p> the Fund to fulfill obligations of the guarantees provided to financial <p> institutions under subsection (a).</text> <p> </paragraph></subsection></section><section commented="no" id="H0176C5A3767D44E0B9459D62F5021167"><enum>103.</enum><header>Considerations</header><text display-inline="no-display-inline">In exercising the authorities granted in <p> this Act, the Secretary shall take into consideration—</text> <p> <paragraph commented="no" id="H60D4E812CDB84019B2C3C0F4A296079D"><enum>(1)</enum><text>protecting the interests <p> of taxpayers by maximizing overall returns and minimizing the impact on the <p> national debt;</text> <p> </paragraph><paragraph commented="no" id="idF712AE587FD04278A7211735DEF5D3D6"><enum>(2)</enum><text>providing stability and <p> preventing disruption to financial markets in order to limit the impact on the <p> economy and protect American jobs, savings, and retirement security;</text> <p> </paragraph><paragraph commented="no" id="id31D9DDDD2C2D45F2BB3B89B52A77D489"><enum>(3)</enum><text>the need to help families <p> keep their homes and to stabilize communities;</text> <p> </paragraph><paragraph commented="no" id="H64E84525B2C04F48B043D35E085B9604"><enum>(4)</enum><text>in determining whether to <p> engage in a direct purchase from an individual financial institution, the <p> long-term viability of the financial institution in determining whether the <p> purchase represents the most efficient use of funds under this Act;</text> <p> </paragraph><paragraph commented="no" id="H3182012325FF45999B4127C842626C86"><enum>(5)</enum><text display-inline="yes-display-inline">ensuring that all financial institutions <p> are eligible to participate in the program, without discrimination based on <p> size, geography, form of organization, or the size, type, and number of assets <p> eligible for purchase under this Act;</text> <p> </paragraph><paragraph commented="no" id="H4022FDBF9692452DB000AB9B882D2416"><enum>(6)</enum><text display-inline="yes-display-inline">providing financial assistance to financial <p> institutions, including those serving low- and moderate-income populations and <p> other underserved communities, and that have assets less than $1,000,000,000, <p> that were well or adequately capitalized as of June 30, 2008, and that as a <p> result of the devaluation of the preferred government-sponsored enterprises <p> stock will drop one or more capital levels, in a manner sufficient to restore <p> the financial institutions to at least an adequately capitalized level;</text> <p> </paragraph><paragraph commented="no" id="H03942D4F142945A8A21E9EB0A15063A2"><enum>(7)</enum><text display-inline="yes-display-inline">the need to ensure stability for United <p> States public instrumentalities, such as counties and cities, that may have <p> suffered significant increased costs or losses in the current market <p> turmoil;</text> <p> </paragraph><paragraph commented="no" id="id730AEEC5F4E94776990E6D42D0FF635C"><enum>(8)</enum><text display-inline="yes-display-inline">protecting the retirement security of <p> Americans by purchasing troubled assets held by or on behalf of an eligible <p> retirement plan described in clause (iii), (iv), (v), or (vi) of section <p> 402(c)(8)(B) of the Internal Revenue Code of 1986, except that such authority <p> shall not extend to any compensation arrangements subject to section 409A of <p> such Code; and</text> <p> </paragraph><paragraph commented="no" id="HC16E05AB4BB646C299ED0067E8A269FE"><enum>(9)</enum><text>the utility of purchasing <p> other real estate owned and instruments backed by mortgages on multifamily <p> properties.</text> <p> </paragraph></section><section id="HA9208E8E68444864A9FB07D7F1C0DD33"><enum>104.</enum><header>Financial Stability <p> Oversight Board</header> <p> <subsection id="HDAC3A3F9B0604ED981E368C48EF632F2"><enum>(a)</enum><header>Establishment</header><text>There <p> is established the Financial Stability Oversight Board, which shall be <p> responsible for—</text> <p> <paragraph id="H48018E3D7732485480D1212B87A76748"><enum>(1)</enum><text>reviewing the exercise of <p> authority under a program developed in accordance with this Act, <p> including—</text> <p> <subparagraph id="HDD6F0E7DF8364A1496CB4654EA01246F"><enum>(A)</enum><text>policies implemented by <p> the Secretary and the Office of Financial Stability created under sections 101 <p> and 102, including the appointment of financial agents, the designation of <p> asset classes to be purchased, and plans for the structure of vehicles used to <p> purchase troubled assets; and</text> <p> </subparagraph><subparagraph id="H450842E8149C4A49A784F806AA7E00DF"><enum>(B)</enum><text>the effect of such <p> actions in assisting American families in preserving home ownership, <p> stabilizing financial markets, and protecting taxpayers;</text> <p> </subparagraph></paragraph><paragraph id="HA3AB6C3A756A4055ABE6E81DA935B5F7"><enum>(2)</enum><text>making recommendations, <p> as appropriate, to the Secretary regarding use of the authority under this Act; <p> and</text> <p> </paragraph><paragraph id="H6396BB39C67149909E30D23103256393"><enum>(3)</enum><text>reporting any suspected <p> fraud, misrepresentation, or malfeasance to the Special Inspector General for <p> the Troubled Assets Relief Program or the Attorney General of the United <p> States, consistent with <external-xref legal-doc="usc" parsable-cite="usc/28/535">section 535(b)</external-xref> of title 28, United States Code.</text> <p> </paragraph></subsection><subsection commented="no" id="HA5A162DC54954511937368F1AF49FB3B"><enum>(b)</enum><header>Membership</header><text display-inline="yes-display-inline">The Financial Stability Oversight Board <p> shall be comprised of—</text> <p> <paragraph commented="no" id="H9777EDA6D9F14343AE411764B9D01691"><enum>(1)</enum><text>the Chairman of the Board <p> of Governors of the Federal Reserve System;</text> <p> </paragraph><paragraph commented="no" id="HBA1A0736C8EE4974922998DD7DD0594F"><enum>(2)</enum><text>the Secretary;</text> <p> </paragraph><paragraph commented="no" id="id5A26C0464007496AB6E546A9AD19CBD2"><enum>(3)</enum><text>the Director of the <p> Federal Housing Finance Agency;</text> <p> </paragraph><paragraph commented="no" id="HF988C7F2C5BE4EDEAFACD576E85D5D82"><enum>(4)</enum><text>the Chairman of the <p> Securities Exchange Commission; and</text> <p> </paragraph><paragraph commented="no" id="id99D6023082624378B02BBBF2BF250AB3"><enum>(5)</enum><text>the Secretary of Housing <p> and Urban Development.</text> <p> </paragraph></subsection><subsection id="H21FCE61D403242FC85FE4941689250AA"><enum>(c)</enum><header>Chairperson</header><text display-inline="yes-display-inline">The chairperson of the Financial Stability <p> Oversight Board shall be elected by the members of the Board from among the <p> members other than the Secretary.</text> <p> </subsection><subsection id="HD0530A31508B4D72B91EC52D70CB0203"><enum>(d)</enum><header>Meetings</header><text display-inline="yes-display-inline">The Financial Stability Oversight Board <p> shall meet 2 weeks after the first exercise of the purchase authority of the <p> Secretary under this Act, and monthly thereafter.</text> <p> </subsection><subsection commented="no" id="id066E1B9D46CF4C5893DA01F3BB23A95D"><enum>(e)</enum><header>Additional <p> authorities</header><text display-inline="yes-display-inline">In addition to <p> the responsibilities described in subsection (a), the Financial Stability <p> Oversight Board shall have the authority to ensure that the policies <p> implemented by the Secretary are—</text> <p> <paragraph commented="no" id="id4CE6E243525741D293BE25ED5C236716"><enum>(1)</enum><text display-inline="yes-display-inline">in accordance with the purposes of this <p> Act;</text> <p> </paragraph><paragraph commented="no" id="id89771F03511E4D17B28719D8DB2BA056"><enum>(2)</enum><text display-inline="yes-display-inline">in the economic interests of the United <p> States; and</text> <p> </paragraph><paragraph commented="no" id="id4512FE0E8E824AA3B5F810D1FE63B7B1"><enum>(3)</enum><text display-inline="yes-display-inline">consistent with protecting taxpayers, in <p> accordance with section 113(a).</text> <p> </paragraph></subsection><subsection commented="no" id="id737BC04190AD406E972C166FF280ABDD"><enum>(f)</enum><header>Credit review <p> committee</header><text display-inline="yes-display-inline">The Financial <p> Stability Oversight Board may appoint a credit review committee for the purpose <p> of evaluating the exercise of the purchase authority provided under this Act <p> and the assets acquired through the exercise of such authority, as the <p> Financial Stability Oversight Board determines appropriate.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="id0A05123BBFDF4C5D8F8BD6B83732BF15"><enum>(g)</enum><header>Reports</header><text>The <p> Financial Stability Oversight Board shall report to the appropriate committees <p> of Congress and the Congressional Oversight Panel established under section <p> 125, not less frequently than quarterly, on the matters described under <p> subsection (a)(1).</text> <p> </subsection><subsection id="idD58030EBC31B4956B09AC8D97DAF48DE"><enum>(h)</enum><header>Termination</header><text>The <p> Financial Stability Oversight Board, and its authority under this section, <p> shall terminate on the expiration of the 15-day period beginning upon the later <p> of—</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="id306B5280376841D6BFAE7871116FDD91"><enum>(1)</enum><text>the date that the last <p> troubled asset acquired by the Secretary under section 101 has been sold or <p> transferred out of the ownership or control of the Federal Government; <p> or</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id97349C6572FA4184B9F94943A1154500"><enum>(2)</enum><text>the date of expiration of <p> the last insurance contract issued under section 102.</text> <p> </paragraph></subsection></section><section commented="no" id="H14669E3C61EF44E08D53E1A73EF439C1" section-type="subsequent-section"><enum>105.</enum><header>Reports</header> <p> <subsection commented="no" id="H91EFB7C615414FFDAA9C60127BBB5B55"><enum>(a)</enum><header>In <p> general</header><text display-inline="yes-display-inline">Before the expiration <p> of the 60-day period beginning on the date of the first exercise of the <p> authority granted in section 101(a), or of the first exercise of the authority <p> granted in section 102, whichever occurs first, and every 30-day period <p> thereafter, the Secretary shall report to the appropriate committees of <p> Congress, with respect to each such period—</text> <p> <paragraph commented="no" id="H0AF9F4BD5C4D4205AB8B34727CAE3876"><enum>(1)</enum><text display-inline="yes-display-inline">an overview of actions taken by the <p> Secretary, including the considerations required by section 103 and the efforts <p> under section 109;</text> <p> </paragraph><paragraph commented="no" id="H55D0C3F531594CBDB87E8514582063D3"><enum>(2)</enum><text>the actual obligation and <p> expenditure of the funds provided for administrative expenses by section 118 <p> during such period and the expected expenditure of such funds in the subsequent <p> period; and</text> <p> </paragraph><paragraph commented="no" id="H00DFECCBD60546ACB7616B5900296BE4"><enum>(3)</enum><text>a detailed financial <p> statement with respect to the exercise of authority under this Act, <p> including—</text> <p> <subparagraph commented="no" id="HAC3FB8B950E14F24B65DB0BD3BCDD427"><enum>(A)</enum><text>all agreements made or <p> renewed;</text> <p> </subparagraph><subparagraph commented="no" id="id38596F79F8864DA4A18ED35FD6BF8A25"><enum>(B)</enum><text>all insurance contracts <p> entered into pursuant to section 102;</text> <p> </subparagraph><subparagraph commented="no" id="H48A4227FB195427A9CDCA1DAE3F22DFA"><enum>(C)</enum><text>all transactions <p> occurring during such period, including the types of parties involved;</text> <p> </subparagraph><subparagraph commented="no" id="H283FDB4F1B7A493E8322226FA87A6E3"><enum>(D)</enum><text>the nature of the assets <p> purchased;</text> <p> </subparagraph><subparagraph commented="no" id="H0B17AE2D59254370ABD00F511A942C9"><enum>(E)</enum><text>all projected costs and <p> liabilities;</text> <p> </subparagraph><subparagraph commented="no" id="H12B67FA503F04D9589416B8DE17C2D48"><enum>(F)</enum><text>operating expenses, <p> including compensation for financial agents;</text> <p> </subparagraph><subparagraph commented="no" id="H51AD722AD987410D97B6FCE97C5CCBA"><enum>(G)</enum><text>the valuation or pricing <p> method used for each transaction; and</text> <p> </subparagraph><subparagraph commented="no" id="HB75BB084A9D94A83A88D3B3E7BE100E"><enum>(H)</enum><text>a description of the <p> vehicles established to exercise such authority.</text> <p> </subparagraph></paragraph></subsection><subsection commented="no" id="H26EE996D888E4EF785C891EBE1260985"><enum>(b)</enum><header>Tranche reports to <p> Congress</header> <p> <paragraph commented="no" id="H7733AC2CE27A4031857FEB90F8EAB0D2"><enum>(1)</enum><header>Reports</header><text>The <p> Secretary shall provide to the appropriate committees of Congress, at the times <p> specified in paragraph (2), a written report, including—</text> <p> <subparagraph commented="no" id="HE112C816768241EFA6E9CF4CC4B12ED8"><enum>(A)</enum><text>a description of all of <p> the transactions made during the reporting period;</text> <p> </subparagraph><subparagraph commented="no" id="HBED67926731540D38B88B8FD10E94B41"><enum>(B)</enum><text>a description of the <p> pricing mechanism for the transactions;</text> <p> </subparagraph><subparagraph commented="no" id="HDD713915A13E46B5B785E3D2339C8306"><enum>(C)</enum><text>a justification of the <p> price paid for and other financial terms associated with the <p> transactions;</text> <p> </subparagraph><subparagraph commented="no" id="HB9CA35BF01B54DF5AA5C52000051C7D"><enum>(D)</enum><text>a description of the <p> impact of the exercise of such authority on the financial system, supported, to <p> the extent possible, by specific data;</text> <p> </subparagraph><subparagraph commented="no" id="HB7683A858FD9440CA03DDF105400B6B7"><enum>(E)</enum><text>a description of <p> challenges that remain in the financial system, including any benchmarks yet to <p> be achieved; and</text> <p> </subparagraph><subparagraph commented="no" id="H64F70C75FEA248C6A8B6CB90F881A8C3"><enum>(F)</enum><text>an estimate of additional <p> actions under the authority provided under this Act that may be necessary to <p> address such challenges.</text> <p> </subparagraph></paragraph><paragraph commented="no" id="H487A17C4F43F40BE85A531D41E08039D"><enum>(2)</enum><header>Timing</header><text>The <p> report required by this subsection shall be submitted not later than 7 days <p> after the date on which commitments to purchase troubled assets under the <p> authorities provided in this Act first reach an aggregate of $50,000,000,000 <p> and not later than 7 days after each $50,000,000,000 interval of such <p> commitments is reached thereafter.</text> <p> </paragraph></subsection><subsection commented="no" id="H64651DEF4D3342ABA51C420012534325"><enum>(c)</enum><header>Regulatory <p> modernization report</header><text display-inline="yes-display-inline">The <p> Secretary shall review the current state of the financial markets and the <p> regulatory system and submit a written report to the appropriate committees of <p> Congress not later than April 30, 2009, analyzing the current state of the <p> regulatory system and its effectiveness at overseeing the participants in the <p> financial markets, including the over-the-counter swaps market and <p> government-sponsored enterprises, and providing recommendations for <p> improvement, including—</text> <p> <paragraph commented="no" id="idCC922642A9A64DF4B792CDEDE442026F"><enum>(1)</enum><text display-inline="yes-display-inline">recommendations regarding—</text> <p> <subparagraph commented="no" id="idD60375AF60EC4E0EAA85BE1B4ECDA72A"><enum>(A)</enum><text display-inline="yes-display-inline">whether any participants in the financial <p> markets that are currently outside the regulatory system should become subject <p> to the regulatory system; and</text> <p> </subparagraph><subparagraph commented="no" id="idEF73B5176B1440F39A523C01B14B403E"><enum>(B)</enum><text display-inline="yes-display-inline">enhancement of the clearing and settlement <p> of over-the-counter swaps; and</text> <p> </subparagraph></paragraph><paragraph commented="no" id="id5094E897CCA24182AB9966F26DEB369C"><enum>(2)</enum><text display-inline="yes-display-inline">the rationale underlying such <p> recommendations.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idA7A5C25D4E3B45279CB0AC66A1D6B321"><enum>(d)</enum><header>Sharing of <p> information</header><text>Any report required under this section shall also be <p> submitted to the Congressional Oversight Panel established under section <p> 125.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="id930D3B7BB3A04B62B81E0CC310E4095A"><enum>(e)</enum><header>Sunset</header><text>The <p> reporting requirements under this section shall terminate on the later <p> of—</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="idF1D9D655CF2145EC8C7BED10B25311B0"><enum>(1)</enum><text>the date that the last <p> troubled asset acquired by the Secretary under section 101 has been sold or <p> transferred out of the ownership or control of the Federal Government; <p> or</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4BDD59F87F594B0BBAC35B22B29A6423"><enum>(2)</enum><text>the date of expiration of <p> the last insurance contract issued under section 102.</text> <p> </paragraph></subsection></section><section id="H6B02B05ECF0743C7913F191519C312B5"><enum>106.</enum><header>Rights; management; <p> sale of troubled assets; revenues and sale proceeds</header> <p> <subsection id="H1F9CC54EEC0146AAA6B9BF1C44CACFA"><enum>(a)</enum><header>Exercise of <p> rights</header><text>The Secretary may, at any time, exercise any rights <p> received in connection with troubled assets purchased under this Act.</text> <p> </subsection><subsection commented="no" id="H2C71E0A0E3804D68BB12C097A77BCD9F"><enum>(b)</enum><header>Management of troubled <p> assets</header><text>The Secretary shall have authority to manage troubled <p> assets purchased under this Act, including revenues and portfolio risks <p> therefrom.</text> <p> </subsection><subsection id="H568C6FF022934246BE94F848D9008365"><enum>(c)</enum><header>Sale of troubled <p> assets</header><text>The Secretary may, at any time, upon terms and conditions <p> and at a price determined by the Secretary, sell, or enter into securities <p> loans, repurchase transactions, or other financial transactions in regard to, <p> any troubled asset purchased under this Act.</text> <p> </subsection><subsection commented="no" id="id8BD06A7A9CC843CE84A86EB8B74FC090"><enum>(d)</enum><header>Transfer to <p> treasury</header><text>Revenues of, and proceeds from the sale of troubled <p> assets purchased under this Act, or from the sale, exercise, or surrender of <p> warrants or senior debt instruments acquired under section 113 shall be paid <p> into the general fund of the Treasury for reduction of the public debt.</text> <p> </subsection><subsection id="HC48F6300C1A54C06A8EEDC819F4941CC"><enum>(e)</enum><header>Application of sunset <p> to troubled assets</header><text>The authority of the Secretary to hold any <p> troubled asset purchased under this Act before the termination date in section <p> 120, or to purchase or fund the purchase of a troubled asset under a commitment <p> entered into before the termination date in section 120, is not subject to the <p> provisions of section 120.</text> <p> </subsection></section><section id="HEE23F37E2D554AFE9F24F75E9DBF1076"><enum>107.</enum><header>Contracting <p> procedures</header> <p> <subsection id="id0E1840F056924D7AB2F41C1F47565EB2"><enum>(a)</enum><header>Streamlined <p> process</header><text>For purposes of this Act, the Secretary may waive <p> specific provisions of the Federal Acquisition Regulation upon a determination <p> that urgent and compelling circumstances make compliance with such provisions <p> contrary to the public interest. Any such determination, and the justification <p> for such determination, shall be submitted to the Committees on Oversight and <p> Government Reform and Financial Services of the House of Representatives and <p> the Committees on Homeland Security and Governmental Affairs and Banking, <p> Housing, and Urban Affairs of the Senate within 7 days.</text> <p> </subsection><subsection commented="no" id="H2FCBC79E224B41538E3301E04CBCDF5E"><enum>(b)</enum><header>Additional contracting <p> requirements</header><text display-inline="yes-display-inline">In any <p> solicitation or contract where the Secretary has, pursuant to subsection (a), <p> waived any provision of the Federal Acquisition Regulation pertaining to <p> minority contracting, the Secretary shall develop and implement standards and <p> procedures to ensure, to the maximum extent practicable, the inclusion and <p> utilization of minorities (as such term is defined in section 1204(c) of the <p> Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. <p> 1811 note)) and women, and minority- and women-owned businesses (as such terms <p> are defined in section 21A(r)(4) of the Federal Home Loan Bank Act (12 U.S.C. <p> 1441a(r)(4)), in that solicitation or contract, including contracts to asset <p> managers, servicers, property managers, and other service providers or expert <p> consultants.</text> <p> </subsection><subsection id="H444EBBBD5436444CAFFE6999D021C983"><enum>(c)</enum><header>Eligibility of <p> FDIC</header><text>Notwithstanding subsections (a) and (b), the <p> Corporation—</text> <p> <paragraph id="idB178FABCA43046E1BADAB8E905A05A2E"><enum>(1)</enum><text>shall be eligible for, <p> and shall be considered in, the selection of asset managers for residential <p> mortgage loans and residential mortgage-backed securities; and</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA65EE50E86534555989EE5996C5244B4"><enum>(2)</enum><text>shall be reimbursed by <p> the Secretary for any services provided.</text> <p> </paragraph></subsection></section><section display-inline="no-display-inline" id="HC71E77DB2E6E4B14B07BF2118EBA9936"><enum>108.</enum><header>Conflicts of <p> interest</header> <p> <subsection id="H6681D7B2D9FA472BB6A1002732CCCE1C"><enum>(a)</enum><header>Standards <p> required</header><text display-inline="yes-display-inline">The Secretary shall <p> issue regulations or guidelines necessary to address and manage or to prohibit <p> conflicts of interest that may arise in connection with the administration and <p> execution of the authorities provided under this Act, including—</text> <p> <paragraph id="HF541D1335C62402DB83E1504A2AB45D4"><enum>(1)</enum><text display-inline="yes-display-inline">conflicts arising in the selection or <p> hiring of contractors or advisors, including asset managers;</text> <p> </paragraph><paragraph id="HC878E0588FDA4F0390694445612DA351"><enum>(2)</enum><text>the purchase of troubled <p> assets;</text> <p> </paragraph><paragraph id="H6D5DAA6E6FE743DCA1D7D92F17FFC249"><enum>(3)</enum><text display-inline="yes-display-inline">the management of the troubled assets <p> held;</text> <p> </paragraph><paragraph id="HCB8D56FB652D4D90A13E0605C0562344"><enum>(4)</enum><text display-inline="yes-display-inline">post-employment restrictions on employees; <p> and</text> <p> </paragraph><paragraph id="H55E8D590A7434E56B9D09E73FF44267E"><enum>(5)</enum><text display-inline="yes-display-inline">any other potential conflict of interest, <p> as the Secretary deems necessary or appropriate in the public interest.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H45FFDFE2919D4C66BD2D7CB2EA41A511"><enum>(b)</enum><header>Timing</header><text>Regulations <p> or guidelines required by this section shall be issued as soon as practicable <p> after the date of enactment of this Act.</text> <p> </subsection></section><section id="idCAB3CD580442450D919F0B58A911D8A1"><enum>109.</enum><header>Foreclosure mitigation <p> efforts</header> <p> <subsection id="idCE39B3D026C24912827C8F22FFD44BED"><enum>(a)</enum><header>Residential mortgage <p> loan servicing standards</header><text>To the extent that the Secretary <p> acquires mortgages, mortgage backed securities, and other assets secured by <p> residential real estate, including multifamily housing, the Secretary shall <p> implement a plan that seeks to maximize assistance for homeowners and use the <p> authority of the Secretary to encourage the servicers of the underlying <p> mortgages, considering net present value to the taxpayer, to take advantage of <p> the HOPE for Homeowners Program under section 257 of the National Housing Act <p> or other available programs to minimize foreclosures. In addition, the <p> Secretary may use loan guarantees and credit enhancements to facilitate loan <p> modifications to prevent avoidable foreclosures.</text> <p> </subsection><subsection commented="no" id="H2861173A789F40A88B5E4CB3D624E594"><enum>(b)</enum><header>Coordination</header><text>The <p> Secretary shall coordinate with the Corporation, the Board (with respect to any <p> mortgage or mortgage-backed securities or pool of securities held, owned, or <p> controlled by or on behalf of a Federal reserve bank, as provided in section <p> 110(a)(1)(C)), the Federal Housing Finance Agency, the Secretary of Housing and <p> Urban Development, and other Federal Government entities that hold troubled <p> assets to attempt to identify opportunities for the acquisition of classes of <p> troubled assets that will improve the ability of the Secretary to improve the <p> loan modification and restructuring process and, where permissible, to permit <p> bona fide tenants who are current on their rent to remain in their homes under <p> the terms of the lease. In the case of a mortgage on a residential rental <p> property, the plan required under this section shall include protecting <p> Federal, State, and local rental subsidies and protections, and ensuring any <p> modification takes into account the need for operating funds to maintain decent <p> and safe conditions at the property.</text> <p> </subsection><subsection id="idBB52EDEAA3F3413FA64A070ACA422A9E"><enum>(c)</enum><header>Consent to reasonable <p> loan modification requests</header><text>Upon any request arising under <p> existing investment contracts, the Secretary shall consent, where appropriate, <p> and considering net present value to the taxpayer, to reasonable requests for <p> loss mitigation measures, including term extensions, rate reductions, principal <p> write downs, increases in the proportion of loans within a trust or other <p> structure allowed to be modified, or removal of other limitation on <p> modifications.</text> <p> </subsection></section><section display-inline="no-display-inline" id="H34F923B3C38D4D5C98B8E1EE72F300E2" section-type="subsequent-section"><enum>110.</enum><header>Assistance to <p> homeowners</header> <p> <subsection id="HE379230BF45D4F33A9E9180011F58600"><enum>(a)</enum><header>Definitions</header><text>As <p> used in this section—</text> <p> <paragraph id="HAC5A241D36D04E990045E63255A78693"><enum>(1)</enum><text>the term <term>Federal <p> property manager</term> means—</text> <p> <subparagraph id="H089C77D40FFC44BC8CE13F15701963DE"><enum>(A)</enum><text>the Federal Housing <p> Finance Agency, in its capacity as conservator of the Federal National Mortgage <p> Association and the Federal Home Loan Mortgage Corporation;</text> <p> </subparagraph><subparagraph commented="no" id="HD3CDDB63FDEA4293B122DCE60F3A761"><enum>(B)</enum><text>the Corporation, with <p> respect to residential mortgage loans and mortgage-backed securities held by <p> any bridge depository institution pursuant to section 11(n) of the Federal <p> Deposit Insurance Act; and</text> <p> </subparagraph><subparagraph id="HE19C52AEA0A048BE85D4BB2C78BD4FA4"><enum>(C)</enum><text>the Board, with respect <p> to any mortgage or mortgage-backed securities or pool of securities held, <p> owned, or controlled by or on behalf of a Federal reserve bank, other than <p> mortgages or securities held, owned, or controlled in connection with open <p> market operations under section 14 of the Federal Reserve Act (<external-xref legal-doc="usc" parsable-cite="usc/12/353">12 U.S.C. 353</external-xref>), <p> or as collateral for an advance or discount that is not in default;</text> <p> </subparagraph></paragraph><paragraph id="H9C105D4107CE4C8BAC740084D2685500"><enum>(2)</enum><text>the term <p> <term>consumer</term> has the same meaning as in section 103 of the Truth in <p> Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1602">15 U.S.C. 1602</external-xref>);</text> <p> </paragraph><paragraph id="H004BFBEF6C4A48F8871F194C2D00F3EB"><enum>(3)</enum><text>the term <term>insured <p> depository institution</term> has the same meaning as in section 3 of the <p> Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1813">12 U.S.C. 1813</external-xref>); and</text> <p> </paragraph><paragraph id="H71B09EC19F8B4ABCBF936E9DA4807CF2"><enum>(4)</enum><text>the term <p> <term>servicer</term> has the same meaning as in section 6(i)(2) of the Real <p> Estate Settlement Procedures Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/12/2605">12 U.S.C. 2605(i)(2)</external-xref>).</text> <p> </paragraph></subsection><subsection id="H693C0D528A044078ADC185005FE93842"><enum>(b)</enum><header>Homeowner assistance by <p> agencies</header> <p> <paragraph id="idC6D99905C6DE495E828513F627BA440C"><enum>(1)</enum><header>In <p> general</header><text>To the extent that the Federal property manager holds, <p> owns, or controls mortgages, mortgage backed securities, and other assets <p> secured by residential real estate, including multifamily housing, the Federal <p> property manager shall implement a plan that seeks to maximize assistance for <p> homeowners and use its authority to encourage the servicers of the underlying <p> mortgages, and considering net present value to the taxpayer, to take advantage <p> of the HOPE for Homeowners Program under section 257 of the National Housing <p> Act or other available programs to minimize foreclosures.</text> <p> </paragraph><paragraph id="HDDE145FD53DF4E86AB4900BB08299500"><enum>(2)</enum><header>Modifications</header><text>In <p> the case of a residential mortgage loan, modifications made under paragraph (1) <p> may include—</text> <p> <subparagraph id="HAE486C0539214CFE9F38D834AF00C522"><enum>(A)</enum><text>reduction in interest <p> rates;</text> <p> </subparagraph><subparagraph id="H5255376A680140F300A1B600C7CA6CF4"><enum>(B)</enum><text>reduction of loan <p> principal; and</text> <p> </subparagraph><subparagraph id="H7345CFDF951C44D9B0263BD59ED5A206"><enum>(C)</enum><text>other similar <p> modifications.</text> <p> </subparagraph></paragraph><paragraph id="H1C154B289350454C92D71115F96661CB"><enum>(3)</enum><header>Tenant <p> protections</header><text display-inline="yes-display-inline">In the case of <p> mortgages on residential rental properties, modifications made under paragraph <p> (1) shall ensure—</text> <p> <subparagraph id="H57001CCD00C841229B8E486434801700"><enum>(A)</enum><text>the continuation of any <p> existing Federal, State, and local rental subsidies and protections; and</text> <p> </subparagraph><subparagraph id="H2C7BA1ACF8AE4A03B8B4C35D5FDA1692"><enum>(B)</enum><text>that modifications take <p> into account the need for operating funds to maintain decent and safe <p> conditions at the property.</text> <p> </subparagraph></paragraph><paragraph id="H077F0CFB11D647389FB04C197EF5568"><enum>(4)</enum><header>Timing</header><text>Each <p> Federal property manager shall develop and begin implementation of the plan <p> required by this subsection not later than 60 days after the date of enactment <p> of this Act.</text> <p> </paragraph><paragraph id="H39866FB6F7F44FC9A888AAD538560733"><enum>(5)</enum><header>Reports to <p> congress</header><text>Each Federal property manager shall, 60 days after the <p> date of enactment of this Act and every 30 days thereafter, report to Congress <p> specific information on the number and types of loan modifications made and the <p> number of actual foreclosures occurring during the reporting period in <p> accordance with this section.</text> <p> </paragraph><paragraph id="H560F59EC0C1C476EBDC190F9D2279FB"><enum>(6)</enum><header>Consultation</header><text>In <p> developing the plan required by this subsection, the Federal property managers <p> shall consult with one another and, to the extent possible, utilize consistent <p> approaches to implement the requirements of this subsection.</text> <p> </paragraph></subsection><subsection id="HD8759276D5824B91B6A0F63DC39F0D8"><enum>(c)</enum><header>Actions with respect to <p> servicers</header><text>In any case in which a Federal property manager is not <p> the owner of a residential mortgage loan, but holds an interest in obligations <p> or pools of obligations secured by residential mortgage loans, the Federal <p> property manager shall—</text> <p> <paragraph id="HFAC0B6F5AAD1478392931D16CBCCE507"><enum>(1)</enum><text>encourage implementation <p> by the loan servicers of loan modifications developed under subsection (b); <p> and</text> <p> </paragraph><paragraph id="H001D9B1BBDD046349BD093BC8FEEDD6"><enum>(2)</enum><text>assist in facilitating <p> any such modifications, to the extent possible.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H092E4CDC465948F08F2E63DAE07B2F28"><enum>(d)</enum><header>Limitation</header><text>The <p> requirements of this section shall not supersede any other duty or requirement <p> imposed on the Federal property managers under otherwise applicable law.</text> <p> </subsection></section><section commented="no" display-inline="no-display-inline" id="id3837E53086144667AB08B35D3215782C"><enum>111.</enum><header>Executive compensation <p> and corporate governance</header> <p> <subsection commented="no" display-inline="no-display-inline" id="idA4B2BCB23B354344809F9C443253E62B"><enum>(a)</enum><header>Applicability</header><text>Any <p> financial institution that sells troubled assets to the Secretary under this <p> Act shall be subject to the executive compensation requirements of subsections <p> (b) and (c) and the provisions under the Internal Revenue Code of 1986, as <p> provided under the amendment by section 302, as applicable.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="id4119BA663FDD4C09BAE4D7A2F302BF01"><enum>(b)</enum><header>Direct <p> purchases</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="id7EBA8C56FDAE4D529AE86DEB0FF31FF0"><enum>(1)</enum><header>In <p> general</header><text>Where the Secretary determines that the purposes of this <p> Act are best met through direct purchases of troubled assets from an individual <p> financial institution where no bidding process or market prices are available, <p> and the Secretary receives a meaningful equity or debt position in the <p> financial institution as a result of the transaction, the Secretary shall <p> require that the financial institution meet appropriate standards for executive <p> compensation and corporate governance. The standards required under this <p> subsection shall be effective for the duration of the period that the Secretary <p> holds an equity or debt position in the financial institution.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2D68FD335F1144FB918F4B54C2411670"><enum>(2)</enum><header>Criteria</header><text>The <p> standards required under this subsection shall include—</text> <p> <subparagraph id="IDda93fba7ce8d4fe0b08b59b5ead32744"><enum>(A)</enum><text>limits on compensation <p> that exclude incentives for senior executive officers of a financial <p> institution to take unnecessary and excessive risks that threaten the value of <p> the financial institution during the period that the Secretary holds an equity <p> or debt position in the financial institution;</text> <p> </subparagraph><subparagraph id="ID19a0f36e5b324314847e7ebe61045959"><enum>(B)</enum><text>a provision for the <p> recovery by the financial institution of any bonus or incentive compensation <p> paid to a senior executive officer based on statements of earnings, gains, or <p> other criteria that are later proven to be materially inaccurate; and</text> <p> </subparagraph><subparagraph id="ID3c333442909e482cb607d9f4cb756024"><enum>(C)</enum><text>a prohibition on the <p> financial institution making any golden parachute payment to its senior <p> executive officer during the period that the Secretary holds an equity or debt <p> position in the financial institution.</text> <p> </subparagraph></paragraph><paragraph id="id101AE2F1F0C64480B64602A2EF4C2164"><enum>(3)</enum><header>Definition</header><text display-inline="yes-display-inline">For purposes of this section, the term <p> <term>senior executive officer</term> means an individual who is one of the top <p> 5 highly paid executives of a public company, whose compensation is required to <p> be disclosed pursuant to the Securities Exchange Act of 1934, and any <p> regulations issued thereunder, and non-public company counterparts.</text> <p> </paragraph></subsection><subsection commented="no" id="idF9F11470114A477DA05C976C11439178"><enum>(c)</enum><header>Auction <p> purchases</header><text>Where the Secretary determines that the purposes of <p> this Act are best met through auction purchases of troubled assets, and only <p> where such purchases per financial institution in the aggregate exceed <p> $300,000,000 (including direct purchases), the Secretary shall prohibit, for <p> such financial institution, any new employment contract with a senior executive <p> officer that provides a golden parachute in the event of an involuntary <p> termination, bankruptcy filing, insolvency, or receivership. The Secretary <p> shall issue guidance to carry out this paragraph not later than 2 months after <p> the date of enactment of this Act, and such guidance shall be effective upon <p> issuance.</text> <p> </subsection><subsection commented="no" id="idD909C248652347A6B3EAB7073D29A097"><enum>(d)</enum><header>Sunset</header><text>The <p> provisions of subsection (c) shall apply only to arrangements entered into <p> during the period during which the authorities under section 101(a) are in <p> effect, as determined under section 120.</text> <p> </subsection></section><section id="H7B968D187E2C4F72959DF1215E2CFD9C"><enum>112.</enum><header>Coordination with <p> foreign authorities and central banks</header><text display-inline="no-display-inline">The Secretary shall coordinate, as <p> appropriate, with foreign financial authorities and central banks to work <p> toward the establishment of similar programs by such authorities and central <p> banks. To the extent that such foreign financial authorities or banks hold <p> troubled assets as a result of extending financing to financial institutions <p> that have failed or defaulted on such financing, such troubled assets qualify <p> for purchase under section 101.</text> <p> </section><section commented="no" id="H1397E18565EE48D8ABC7D4217098F289"><enum>113.</enum><header>Minimization of <p> long-term costs and maximization of benefits for taxpayers</header> <p> <subsection commented="no" id="HA21E74D3B4F74750B73F5060D050B62C"><enum>(a)</enum><header>Long-term costs and <p> benefits</header> <p> <paragraph commented="no" id="id2234E5967F9449A784FB81AA83BC6AD5"><enum>(1)</enum><header>Minimizing negative <p> impact</header><text>The Secretary shall use the authority under this Act in a <p> manner that will minimize any potential long-term negative impact on the <p> taxpayer, taking into account the direct outlays, potential long-term returns <p> on assets purchased, and the overall economic benefits of the program, <p> including economic benefits due to improvements in economic activity and the <p> availability of credit, the impact on the savings and pensions of individuals, <p> and reductions in losses to the Federal Government.</text> <p> </paragraph><paragraph commented="no" id="id5AAC236F6A61498FB426660E4D4CA68F"><enum>(2)</enum><header>Authority</header><text>In <p> carrying out paragraph (1), the Secretary shall—</text> <p> <subparagraph commented="no" id="idB62712C220064EE5999AADD54B69E821"><enum>(A)</enum><text>hold the assets to <p> maturity or for resale for and until such time as the Secretary determines that <p> the market is optimal for selling such assets, in order to maximize the value <p> for taxpayers; and</text> <p> </subparagraph><subparagraph commented="no" id="id3D2F46BCC2F44AC5871A285CFBB923A4"><enum>(B)</enum><text>sell such assets at a <p> price that the Secretary determines, based on available financial analysis, <p> will maximize return on investment for the Federal Government.</text> <p> </subparagraph></paragraph><paragraph commented="no" id="id4808F06E39094896A7B3CAF27D2A4EDB"><enum>(3)</enum><header>Private sector <p> participation</header><text>The Secretary shall encourage the private sector to <p> participate in purchases of troubled assets, and to invest in financial <p> institutions, consistent with the provisions of this section.</text> <p> </paragraph></subsection><subsection commented="no" id="H467000B1F2B2492A86846CD5FD4BE42C"><enum>(b)</enum><header>Use of market <p> mechanisms</header><text>In making purchases under this Act, the Secretary <p> shall—</text> <p> <paragraph commented="no" id="id999ACA8A600543198C81413F7B10CCD1"><enum>(1)</enum><text>make such purchases at <p> the lowest price that the Secretary determines to be consistent with the <p> purposes of this Act; and</text> <p> </paragraph><paragraph commented="no" id="idABF352447EBD491DB23AE7EB45E1DB84"><enum>(2)</enum><text>maximize the efficiency <p> of the use of taxpayer resources by using market mechanisms, including auctions <p> or reverse auctions, where appropriate.</text> <p> </paragraph></subsection><subsection commented="no" id="H01068E20BD864D55AC8B95264D67E8B3"><enum>(c)</enum><header>Direct <p> purchases</header><text>If the Secretary determines that use of a market <p> mechanism under subsection (b) is not feasible or appropriate, and the purposes <p> of the Act are best met through direct purchases from an individual financial <p> institution, the Secretary shall pursue additional measures to ensure that <p> prices paid for assets are reasonable and reflect the underlying value of the <p> asset.</text> <p> </subsection><subsection commented="no" id="H643B8D791E0E454CB2915FB846DF802F"><enum>(d)</enum><header>Conditions on purchase <p> authority for warrants and debt instruments</header> <p> <paragraph commented="no" id="HA754EF64D7B94303AA003CCB7058CA6B"><enum>(1)</enum><header>In <p> general</header><text>The Secretary may not purchase, or make any commitment to <p> purchase, any troubled asset under the authority of this Act, unless the <p> Secretary receives from the financial institution from which such assets are to <p> be purchased—</text> <p> <subparagraph commented="no" id="HC08E6D1F2E9B4BA39661879D63A289EC"><enum>(A)</enum><text>in the case of a <p> financial institution, the securities of which are traded on a national <p> securities exchange, a warrant giving the right to the Secretary to receive <p> nonvoting common stock or preferred stock in such financial institution, or <p> voting stock with respect to which, the Secretary agrees not to exercise voting <p> power, as the Secretary determines appropriate; or</text> <p> </subparagraph><subparagraph commented="no" id="H21A5D8D3A7D04C46BD4FCBC6C597BCD5"><enum>(B)</enum><text>in the case of any <p> financial institution other than one described in subparagraph (A), a warrant <p> for common or preferred stock, or a senior debt instrument from such financial <p> institution, as described in paragraph (2)(C).</text> <p> </subparagraph></paragraph><paragraph commented="no" id="H1772ECE054194FF0972C4F011CAE375E"><enum>(2)</enum><header>Terms and <p> conditions</header><text>The terms and conditions of any warrant or senior debt <p> instrument required under paragraph (1) shall meet the following <p> requirements:</text> <p> <subparagraph commented="no" id="H1DD39DCD21C14AEA80C1BF87E88BD089"><enum>(A)</enum><header>Purposes</header><text>Such <p> terms and conditions shall, at a minimum, be designed—</text> <p> <clause commented="no" id="H2EE0B5D37F5B4149AB331985B7B2C153"><enum>(i)</enum><text>to provide for reasonable <p> participation by the Secretary, for the benefit of taxpayers, in equity <p> appreciation in the case of a warrant or other equity security, or a reasonable <p> interest rate premium, in the case of a debt instrument; and</text> <p> </clause><clause id="IDeb44d54519d34690930b399224757f0d"><enum>(ii)</enum><text>to provide additional <p> protection for the taxpayer against losses from sale of assets by the Secretary <p> under this Act and the administrative expenses of the TARP.</text> <p> </clause></subparagraph><subparagraph commented="no" id="H7F57551D0C7141F289BE52C07B11BC32"><enum>(B)</enum><header>Authority to sell, <p> exercise, or surrender</header><text>The Secretary may sell, exercise, or <p> surrender a warrant or any senior debt instrument received under this <p> subsection, based on the conditions established under subparagraph (A).</text> <p> </subparagraph><subparagraph commented="no" id="H558B94B87F4F480FB4A3FCEF64563654"><enum>(C)</enum><header>Conversion</header><text>The <p> warrant shall provide that if, after the warrant is received by the Secretary <p> under this subsection, the financial institution that issued the warrant is no <p> longer listed or traded on a national securities exchange or securities <p> association, as described in paragraph (1)(A), such warrants shall convert to <p> senior debt, or contain appropriate protections for the Secretary to ensure <p> that the Treasury is appropriately compensated for the value of the warrant, in <p> an amount determined by the Secretary.</text> <p> </subparagraph><subparagraph commented="no" id="H7C8861BEB17B4FD88BAB6505A83BCDA7"><enum>(D)</enum><header>Protections</header><text>Any <p> warrant representing securities to be received by the Secretary under this <p> subsection shall contain anti-dilution provisions of the type employed in <p> capital market transactions, as determined by the Secretary. Such provisions <p> shall protect the value of the securities from market transactions such as <p> stock splits, stock distributions, dividends, and other distributions, mergers, <p> and other forms of reorganization or recapitalization.</text> <p> </subparagraph><subparagraph commented="no" id="HC8911F4477AF4998A6DFCB1E4976A605"><enum>(E)</enum><header>Exercise <p> price</header><text>The exercise price for any warrant issued pursuant to this <p> subsection shall be set by the Secretary, in the interest of the <p> taxpayers.</text> <p> </subparagraph><subparagraph commented="no" id="H1101D789E17E4A1CA792BA1EF919B38C"><enum>(F)</enum><header>Sufficiency</header><text>The <p> financial institution shall guarantee to the Secretary that it has authorized <p> shares of nonvoting stock available to fulfill its obligations under this <p> subsection. Should the financial institution not have sufficient authorized <p> shares, including preferred shares that may carry dividend rights equal to a <p> multiple number of common shares, the Secretary may, to the extent necessary, <p> accept a senior debt note in an amount, and on such terms as will compensate <p> the Secretary with equivalent value, in the event that a sufficient shareholder <p> vote to authorize the necessary additional shares cannot be obtained.</text> <p> </subparagraph></paragraph><paragraph commented="no" id="id869358B6A24141AEA0B3C696A551CFA8"><enum>(3)</enum><header>Exceptions</header> <p> <subparagraph commented="no" id="id7E3610C9266A4FE4894DBE8FA83A35A8"><enum>(A)</enum><header>De <p> minimis</header><text>The Secretary shall establish de minimis exceptions to <p> the requirements of this subsection, based on the size of the cumulative <p> transactions of troubled assets purchased from any one financial institution <p> for the duration of the program, at not more than $100,000,000.</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDfdeaa39d329b42689409d706ebd72e35"><enum>(B)</enum><header>Other <p> exceptions</header><text>The Secretary shall establish an exception to the <p> requirements of this subsection and appropriate alternative requirements for <p> any participating financial institution that is legally prohibited from issuing <p> securities and debt instruments, so as not to allow circumvention of the <p> requirements of this section.</text> <p> </subparagraph></paragraph></subsection></section><section id="H8C94784D2C60438C847233BD0056A088"><enum>114.</enum><header>Market <p> transparency</header> <p> <subsection id="H379DEE31B2EC40ACA6A962B2CF37F15C"><enum>(a)</enum><header>Pricing</header><text display-inline="yes-display-inline">To facilitate market transparency, the <p> Secretary shall make available to the public, in electronic form, a <p> description, amounts, and pricing of assets acquired under this Act, within 2 <p> business days of purchase, trade, or other disposition.</text> <p> </subsection><subsection commented="no" id="H0268974F49264B2FB5CD3EA7EF24D8B4"><enum>(b)</enum><header>Disclosure</header><text display-inline="yes-display-inline">For each type of financial institutions <p> that sells troubled assets to the Secretary under this Act, the Secretary shall <p> determine whether the public disclosure required for such financial <p> institutions with respect to off-balance sheet transactions, derivatives <p> instruments, contingent liabilities, and similar sources of potential exposure <p> is adequate to provide to the public sufficient information as to the true <p> financial position of the institutions. If such disclosure is not adequate for <p> that purpose, the Secretary shall make recommendations for additional <p> disclosure requirements to the relevant regulators.</text> <p> </subsection></section><section commented="no" id="idD37B5FD9832745079887E5EFDBEB8148"><enum>115.</enum><header>Graduated <p> authorization to purchase</header> <p> <subsection commented="no" id="idA4F160EBD5494A07B848A43CDD1D5250"><enum>(a)</enum><header>Authority</header><text display-inline="yes-display-inline">The authority of the Secretary to purchase <p> troubled assets under this Act shall be limited as follows:</text> <p> <paragraph commented="no" id="idFA7B2F914F774B6B86CEC90F3E4A8531"><enum>(1)</enum><text>Effective upon the date <p> of enactment of this Act, such authority shall be limited to $250,000,000,000 <p> outstanding at any one time.</text> <p> </paragraph><paragraph commented="no" id="id7C093303C101475FBB75D16B2312E09F"><enum>(2)</enum><text display-inline="yes-display-inline">If at any time, the President submits to <p> the Congress a written certification that the Secretary needs to exercise the <p> authority under this paragraph, effective upon such submission, such authority <p> shall be limited to $350,000,000,000 outstanding at any one time.</text> <p> </paragraph><paragraph commented="no" id="id40056A9F2FA34DE796123197E6BA74C4"><enum>(3)</enum><text display-inline="yes-display-inline">If, at any time after the certification in <p> paragraph (2) has been made, the President transmits to the Congress a written <p> report detailing the plan of the Secretary to exercise the authority under this <p> paragraph, unless there is enacted, within 15 calendar days of such <p> transmission, a joint resolution described in subsection (c), effective upon <p> the expiration of such 15-day period, such authority shall be limited to <p> $700,000,000,000 outstanding at any one time.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id940100C70B7A49A1BB36D089FF9B7C27"><enum>(b)</enum><header>Aggregation of purchase <p> prices</header><text display-inline="yes-display-inline">The amount of troubled <p> assets purchased by the Secretary outstanding at any one time shall be <p> determined for purposes of the dollar amount limitations under subsection (a) <p> by aggregating the purchase prices of all troubled assets held.</text> <p> </subsection><subsection commented="no" id="id5D9612D3126347DB9B1A2BD8CB4C2D42"><enum>(c)</enum><header>Joint resolution of <p> disapproval</header> <p> <paragraph commented="no" id="ID482303EEB3E34D328EC542B335C783D2"><enum>(1)</enum><header>In <p> general</header><text>Notwithstanding any other provision of this section, the <p> Secretary may not exercise any authority to make purchases under this Act with <p> regard to any amount in excess of $350,000,000,000 previously obligated, as <p> described in this section if, within 15 calendar days after the date on which <p> Congress receives a report of the plan of the Secretary described in subsection <p> (a)(3), there is enacted into law a joint resolution disapproving the plan of <p> the Secretary with respect to such additional amount.</text> <p> </paragraph><paragraph commented="no" id="ID6D3232A9937040D2A2454946BE35D3D6"><enum>(2)</enum><header>Contents of joint <p> resolution</header><text>For the purpose of this section, the term <term>joint <p> resolution</term> means only a joint resolution—</text> <p> <subparagraph commented="no" id="idA6F3343B96AA4C9AB75DF860327D39EA"><enum>(A)</enum><text>that is introduced not <p> later than 3 calendar days after the date on which the report of the plan of <p> the Secretary referred to in subsection (a)(3) is received by Congress;</text> <p> </subparagraph><subparagraph id="id95DD94EEFDC747DF92059DAE20D25441"><enum>(B)</enum><text>which does not have a <p> preamble;</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id45A3562885854D1D9C1DC7884497E0B4"><enum>(C)</enum><text>the title of which is as <p> follows: <quote>Joint resolution relating to the disapproval of obligations <p> under the <short-title>Emergency Economic Stabilization <p> Act of 2008</short-title></quote>; and</text> <p> </subparagraph><subparagraph commented="no" id="id56F629F2D8364DB9B7AC47F06487B437"><enum>(D)</enum><text>the matter after the <p> resolving clause of which is as follows: <quote>That Congress disapproves the <p> obligation of any amount exceeding the amounts obligated as described in <p> paragraphs (1) and (2) of section 115(a) of the <p> <short-title>Emergency Economic Stabilization Act of <p> 2008</short-title>.</quote>.</text> <p> </subparagraph></paragraph></subsection><subsection commented="no" id="idA859DB67CF624E66B368465A82CFC994"><enum>(d)</enum><header>Fast track <p> consideration in House of Representatives</header> <p> <paragraph id="id79A912745E794105B9F1508389AAEAB5"><enum>(1)</enum><header>Reconvening</header><text>Upon <p> receipt of a report under subsection (a)(3), the Speaker, if the House would <p> otherwise be adjourned, shall notify the Members of the House that, pursuant to <p> this section, the House shall convene not later than the second calendar day <p> after receipt of such report;</text> <p> </paragraph><paragraph id="idBC2B5E2C589947C186DC3AD08C53D1E5"><enum>(2)</enum><header>Reporting and <p> discharge</header><text>Any committee of the House of Representatives to which <p> a joint resolution is referred shall report it to the House not later than 5 <p> calendar days after the date of receipt of the report described in subsection <p> (a)(3). If a committee fails to report the joint resolution within that period, <p> the committee shall be discharged from further consideration of the joint <p> resolution and the joint resolution shall be referred to the appropriate <p> calendar.</text> <p> </paragraph><paragraph id="idDE056D2DC832454582CB33324DA0DB4C"><enum>(3)</enum><header>Proceeding to <p> consideration</header><text>After each committee authorized to consider a joint <p> resolution reports it to the House or has been discharged from its <p> consideration, it shall be in order, not later than the sixth day after <p> Congress receives the report described in subsection (a)(3), to move to proceed <p> to consider the joint resolution in the House. All points of order against the <p> motion are waived. Such a motion shall not be in order after the House has <p> disposed of a motion to proceed on the joint resolution. The previous question <p> shall be considered as ordered on the motion to its adoption without <p> intervening motion. The motion shall not be debatable. A motion to reconsider <p> the vote by which the motion is disposed of shall not be in order.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idE30EF39978094F288FEB2C93E9EF6F9D"><enum>(4)</enum><header>Consideration</header><text>The <p> joint resolution shall be considered as read. All points of order against the <p> joint resolution and against its consideration are waived. The previous <p> question shall be considered as ordered on the joint resolution to its passage <p> without intervening motion except two hours of debate equally divided and <p> controlled by the proponent and an opponent. A motion to reconsider the vote on <p> passage of the joint resolution shall not be in order.</text> <p> </paragraph></subsection><subsection commented="no" id="id96204C07D317456BB0C6165B60C96E3A"><enum>(e)</enum><header>Fast track <p> consideration in Senate</header> <p> <paragraph id="id8D32E52DA9594ED1B4C32F83B01C94BE"><enum>(1)</enum><header>Reconvening</header><text>Upon <p> receipt of a report under subsection (a)(3), if the Senate has adjourned or <p> recessed for more than 2 days, the majority leader of the Senate, after <p> consultation with the minority leader of the Senate, shall notify the Members <p> of the Senate that, pursuant to this section, the Senate shall convene not <p> later than the second calendar day after receipt of such message.</text> <p> </paragraph><paragraph commented="no" id="id142666AB949B4AC892184AB592BE9C60"><enum>(2)</enum><header>Placement on <p> calendar</header><text>Upon introduction in the Senate, the joint resolution <p> shall be placed immediately on the calendar.</text> <p> </paragraph><paragraph commented="no" id="ID05749AE46BE2458A9D09AEB8341032F8"><enum>(3)</enum><header>Floor <p> consideration</header> <p> <subparagraph commented="no" id="ID2D873B5ADA6E496B89D6EC9C49CFC011"><enum>(A)</enum><header>In <p> general</header><text>Notwithstanding Rule XXII of the Standing Rules of the <p> Senate, it is in order at any time during the period beginning on the 4th day <p> after the date on which Congress receives a report of the plan of the Secretary <p> described in subsection (a)(3) and ending on the 6th day after the date on <p> which Congress receives a report of the plan of the Secretary described in <p> subsection (a)(3) (even though a previous motion to the same effect has been <p> disagreed to) to move to proceed to the consideration of the joint resolution, <p> and all points of order against the joint resolution (and against consideration <p> of the joint resolution) are waived. The motion to proceed is not debatable. <p> The motion is not subject to a motion to postpone. A motion to reconsider the <p> vote by which the motion is agreed to or disagreed to shall not be in order. If <p> a motion to proceed to the consideration of the resolution is agreed to, the <p> joint resolution shall remain the unfinished business until disposed of.</text> <p> </subparagraph><subparagraph commented="no" id="ID1C1DC9BB930B4B36BF782994D80EB557"><enum>(B)</enum><header>Debate</header><text>Debate <p> on the joint resolution, and on all debatable motions and appeals in connection <p> therewith, shall be limited to not more than 10 hours, which shall be divided <p> equally between the majority and minority leaders or their designees. A motion <p> further to limit debate is in order and not debatable. An amendment to, or a <p> motion to postpone, or a motion to proceed to the consideration of other <p> business, or a motion to recommit the joint resolution is not in order.</text> <p> </subparagraph><subparagraph commented="no" id="ID62AC32EF7D3B40A6B0B727E915C69DF0"><enum>(C)</enum><header>Vote on <p> passage</header><text>The vote on passage shall occur immediately following the <p> conclusion of the debate on a joint resolution, and a single quorum call at the <p> conclusion of the debate if requested in accordance with the rules of the <p> Senate.</text> <p> </subparagraph><subparagraph commented="no" id="ID6ADB593D428240C8AE2899C00F821C22"><enum>(D)</enum><header>Rulings of the chair on <p> procedure</header><text>Appeals from the decisions of the Chair relating to the <p> application of the rules of the Senate, as the case may be, to the procedure <p> relating to a joint resolution shall be decided without debate.</text> <p> </subparagraph></paragraph></subsection><subsection id="id6EC3B0584AFB4BD581A4B5956C3B873C"><enum>(f)</enum><header>Rules relating to <p> Senate and House of Representatives</header> <p> <paragraph commented="no" id="IDA3DFA7772CD448B3BD84EF7C44EDA778"><enum>(1)</enum><header>Coordination with <p> action by other house</header><text>If, before the passage by one House of a <p> joint resolution of that House, that House receives from the other House a <p> joint resolution, then the following procedures shall apply:</text> <p> <subparagraph commented="no" id="ID66A9FA2864BC4D358A166B0BDDA2CA15"><enum>(A)</enum><text>The joint resolution of <p> the other House shall not be referred to a committee.</text> <p> </subparagraph><subparagraph commented="no" id="IDC1FD56C0EAF14721B9FB246A916976C1"><enum>(B)</enum><text>With respect to a joint <p> resolution of the House receiving the resolution—</text> <p> <clause commented="no" id="ID8A6C0611762643088B82591FEFA98E56"><enum>(i)</enum><text>the procedure in that <p> House shall be the same as if no joint resolution had been received from the <p> other House; but</text> <p> </clause><clause commented="no" id="ID25C0FC1DC51D4DBEBDE75C730A54C2E1"><enum>(ii)</enum><text>the vote on passage <p> shall be on the joint resolution of the other House.</text> <p> </clause></subparagraph></paragraph><paragraph commented="no" id="id4CDE81960BAA4F4A8DA3C295A329BB7F"><enum>(2)</enum><header>Treatment of joint <p> resolution of other House</header><text>If one House fails to introduce or <p> consider a joint resolution under this section, the joint resolution of the <p> other House shall be entitled to expedited floor procedures under this <p> section.</text> <p> </paragraph><paragraph commented="no" id="id793FF90BFA7B4DB9AAF9F5E5F3BB9CBE"><enum>(3)</enum><header>Treatment of companion <p> measures</header><text>If, following passage of the joint resolution in the <p> Senate, the Senate then receives the companion measure from the House of <p> Representatives, the companion measure shall not be debatable.</text> <p> </paragraph><paragraph id="id9996C9C9C707477FB124B10A1C6E7D56"><enum>(4)</enum><header>Consideration after <p> passage</header> <p> <subparagraph id="id38C3E0DE2EAB4255958289C5B4D02BCD"><enum>(A)</enum><header>In <p> general</header><text>If Congress passes a joint resolution, the period <p> beginning on the date the President is presented with the joint resolution and <p> ending on the date the President takes action with respect to the joint <p> resolution shall be disregarded in computing the 15-calendar day period <p> described in subsection (a)(3).</text> <p> </subparagraph><subparagraph id="id3124DBDEA33743C0B05211DF4E010527"><enum>(B)</enum><header>Vetoes</header><text>If <p> the President vetoes the joint resolution—</text> <p> <clause id="idE66AEEB3C8CB45D3B1157733F08C80CC"><enum>(i)</enum><text>the period beginning on <p> the date the President vetoes the joint resolution and ending on the date the <p> Congress receives the veto message with respect to the joint resolution shall <p> be disregarded in computing the 15-calendar day period described in subsection <p> (a)(3), and</text> <p> </clause><clause id="idB138CDEB37E0418BAB1D27EEEF57E03C"><enum>(ii)</enum><text>debate on a veto message <p> in the Senate under this section shall be 1 hour equally divided between the <p> majority and minority leaders or their designees.</text> <p> </clause></subparagraph></paragraph><paragraph commented="no" id="ID0E886CE5DC3C44FCB8474D8C5CC91C42"><enum>(5)</enum><header>Rules of house of <p> representatives and senate</header><text>This subsection and subsections (c), <p> (d), and (e) are enacted by Congress—</text> <p> <subparagraph commented="no" id="IDEA098FC265CC4D49B42A4C054A3DABFF"><enum>(A)</enum><text>as an exercise of the <p> rulemaking power of the Senate and House of Representatives, respectively, and <p> as such it is deemed a part of the rules of each House, respectively, but <p> applicable only with respect to the procedure to be followed in that House in <p> the case of a joint resolution, and it supersedes other rules only to the <p> extent that it is inconsistent with such rules; and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDED819FD050DE4839BDF2821B011EFE46"><enum>(B)</enum><text>with full recognition of <p> the constitutional right of either House to change the rules (so far as <p> relating to the procedure of that House) at any time, in the same manner, and <p> to the same extent as in the case of any other rule of that House.</text> <p> </subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H7E50F4FCD8F34CE38C04BE9888501040"><enum>116.</enum><header>Oversight and <p> audits</header> <p> <subsection commented="no" id="HFC540D17E5C64ECBA8F066FC85E1B1FC"><enum>(a)</enum><header>Comptroller General <p> Oversight</header> <p> <paragraph commented="no" id="HFDE944F270794367BEA9B28DD1D3C00"><enum>(1)</enum><header>Scope of <p> Oversight</header><text display-inline="yes-display-inline">The Comptroller <p> General of the United States shall, upon establishment of the troubled assets <p> relief program under this Act (in this section referred to as the <p> <quote>TARP</quote>), commence ongoing oversight of the activities and <p> performance of the TARP and of any agents and representatives of the TARP (as <p> related to the agent or representative’s activities on behalf of or under the <p> authority of the TARP), including vehicles established by the Secretary under <p> this Act. The subjects of such oversight shall include the following:</text> <p> <subparagraph commented="no" id="H80D1B06718EE49619F1FEE3601413D51"><enum>(A)</enum><text>The performance of the <p> TARP in meeting the purposes of this Act, particularly those involving—</text> <p> <clause commented="no" id="id0B4709FB26C24FE794045E40804C203C"><enum>(i)</enum><text>foreclosure <p> mitigation;</text> <p> </clause><clause commented="no" id="id31B24724B81944168375D52183DF6F9E"><enum>(ii)</enum><text>cost reduction;</text> <p> </clause><clause commented="no" id="idF122810157624332B32B60C749D834CF"><enum>(iii)</enum><text>whether it has provided <p> stability or prevented disruption to the financial markets or the banking <p> system; and</text> <p> </clause><clause commented="no" id="id696013D878354F538A60DB83ADC51B6A"><enum>(iv)</enum><text>whether it has protected <p> taxpayers.</text> <p> </clause></subparagraph><subparagraph commented="no" id="H6BA31A44E65248C693D1F9A3DE542211"><enum>(B)</enum><text>The financial condition <p> and internal controls of the TARP, its representatives and agents.</text> <p> </subparagraph><subparagraph commented="no" id="H1E3F8DA8A01B40759354E4D9C3E4588"><enum>(C)</enum><text>Characteristics of <p> transactions and commitments entered into, including transaction type, <p> frequency, size, prices paid, and all other relevant terms and conditions, and <p> the timing, duration and terms of any future commitments to purchase <p> assets.</text> <p> </subparagraph><subparagraph commented="no" id="HB9BE37035A4C46719CC710251CF998E"><enum>(D)</enum><text>Characteristics and <p> disposition of acquired assets, including type, acquisition price, current <p> market value, sale prices and terms, and use of proceeds from sales.</text> <p> </subparagraph><subparagraph commented="no" id="H7B0A34911AAB4E27AFCBA81911B12338"><enum>(E)</enum><text>Efficiency of the <p> operations of the TARP in the use of appropriated funds.</text> <p> </subparagraph><subparagraph commented="no" id="H1ED6340777804786AD1164F0BF50A070"><enum>(F)</enum><text>Compliance with all <p> applicable laws and regulations by the TARP, its agents and <p> representatives.</text> <p> </subparagraph><subparagraph commented="no" id="HC7212FB8F0754F1FA3A129C5E1846D32"><enum>(G)</enum><text>The efforts of the TARP <p> to prevent, identify, and minimize conflicts of interest involving any agent or <p> representative performing activities on behalf of or under the authority of the <p> TARP.</text> <p> </subparagraph><subparagraph commented="no" id="H98FCB305607B416CB208ACD5F6004768"><enum>(H)</enum><text display-inline="yes-display-inline">The efficacy of contracting procedures <p> pursuant to section 107(b), including, as applicable, the efforts of the TARP <p> in evaluating proposals for inclusion and contracting to the maximum extent <p> possible of minorities (as such term is defined in 1204(c) of the Financial <p> Institutions Reform, Recovery, and Enhancement Act of 1989 (12 U.S.C. 1811 <p> note), women, and minority- and women-owned businesses, including ascertaining <p> and reporting the total amount of fees paid and other value delivered by the <p> TARP to all of its agents and representatives, and such amounts paid or <p> delivered to such firms that are minority- and women-owned businesses (as such <p> terms are defined in section 21A of the Federal Home Loan Bank Act (12 U.S.C. <p> 1441a)).</text> <p> </subparagraph></paragraph><paragraph commented="no" id="HA6202E8B05774646BA4CA780E10496C"><enum>(2)</enum><header>Conduct and <p> Administration of oversight</header> <p> <subparagraph commented="no" id="H75A27BBA4F9A4587B754D61CD0AF1B82"><enum>(A)</enum><header>GAO <p> presence</header><text display-inline="yes-display-inline">The Secretary shall <p> provide the Comptroller General with appropriate space and facilities in the <p> Department of the Treasury as necessary to facilitate oversight of the TARP <p> until the termination date established in section 120.</text> <p> </subparagraph><subparagraph commented="no" id="H76706027AFFC45EB998EDB425EFACE3B"><enum>(B)</enum><header>Access to <p> records</header><text>To the extent otherwise consistent with law, the <p> Comptroller General shall have access, upon request, to any information, data, <p> schedules, books, accounts, financial records, reports, files, electronic <p> communications, or other papers, things, or property belonging to or in use by <p> the TARP, or any vehicles established by the Secretary under this Act, and to <p> the officers, directors, employees, independent public accountants, financial <p> advisors, and other agents and representatives of the TARP (as related to the <p> agent or representative’s activities on behalf of or under the authority of the <p> TARP) or any such vehicle at such reasonable time as the Comptroller General <p> may request. The Comptroller General shall be afforded full facilities for <p> verifying transactions with the balances or securities held by depositaries, <p> fiscal agents, and custodians. The Comptroller General may make and retain <p> copies of such books, accounts, and other records as the Comptroller General <p> deems appropriate.</text> <p> </subparagraph><subparagraph commented="no" id="H2517E843267D472F82920891968D00D"><enum>(C)</enum><header>Reimbursement of <p> costs</header><text>The Treasury shall reimburse the Government Accountability <p> Office for the full cost of any such oversight activities as billed therefor by <p> the Comptroller General of the United States. Such reimbursements shall be <p> credited to the appropriation account “Salaries and Expenses, Government <p> Accountability Office” current when the payment is received and remain <p> available until expended.</text> <p> </subparagraph></paragraph><paragraph commented="no" id="H84E619D1D0A0481296D759D4C2917100"><enum>(3)</enum><header>Reporting</header><text display-inline="yes-display-inline">The Comptroller General shall submit <p> reports of findings under this section, regularly and no less frequently than <p> once every 60 days, to the appropriate committees of Congress, and the Special <p> Inspector General for the Troubled Asset Relief Program established under this <p> Act on the activities and performance of the TARP. The Comptroller may also <p> submit special reports under this subsection as warranted by the findings of <p> its oversight activities.</text> <p> </paragraph></subsection><subsection commented="no" id="HD2FFBD1F42C04AD584BF0199DD8D00D6"><enum>(b)</enum><header>Comptroller General <p> audits</header> <p> <paragraph commented="no" id="H25A0B37A549B4243A07D1668B19B42"><enum>(1)</enum><header>Annual <p> audit</header><text display-inline="yes-display-inline">The TARP shall annually <p> prepare and issue to the appropriate committees of Congress and the public <p> audited financial statements prepared in accordance with generally accepted <p> accounting principles, and the Comptroller General shall annually audit such <p> statements in accordance with generally accepted auditing standards. The <p> Treasury shall reimburse the Government Accountability Office for the full cost <p> of any such audit as billed therefor by the Comptroller General. Such <p> reimbursements shall be credited to the appropriation account “Salaries and <p> Expenses, Government Accountability Office” current when the payment is <p> received and remain available until expended. The financial statements prepared <p> under this paragraph shall be on the fiscal year basis prescribed under section <p> 1102 of title 31, United States Code.</text> <p> </paragraph><paragraph commented="no" id="H3A8D5FC977CF4C96BE009795050020D"><enum>(2)</enum><header>Authority</header><text>The <p> Comptroller General may audit the programs, activities, receipts, expenditures, <p> and financial transactions of the TARP and any agents and representatives of <p> the TARP (as related to the agent or representative’s activities on behalf of <p> or under the authority of the TARP), including vehicles established by the <p> Secretary under this Act.</text> <p> </paragraph><paragraph commented="no" id="HD95B4B38F5864D24912CB5ACD8B13EC6"><enum>(3)</enum><header>Corrective responses to <p> audit problems</header><text>The TARP shall—</text> <p> <subparagraph commented="no" id="H763D3C02526A42B5A4259165D850DFDB"><enum>(A)</enum><text>take action to address <p> deficiencies identified by the Comptroller General or other auditor engaged by <p> the TARP; or</text> <p> </subparagraph><subparagraph commented="no" id="HBBFA3E5512364360B4611C887ECD160"><enum>(B)</enum><text>certify to appropriate <p> committees of Congress that no action is necessary or appropriate.</text> <p> </subparagraph></paragraph></subsection><subsection commented="no" id="HEC8097B04DF04416A516C30580FF8D6B"><enum>(c)</enum><header>Internal <p> Control</header> <p> <paragraph commented="no" id="HC851427AD87B4B93A821B489806A37D"><enum>(1)</enum><header>Establishment</header><text display-inline="yes-display-inline">The TARP shall establish and maintain an <p> effective system of internal control, consistent with the standards prescribed <p> under <external-xref legal-doc="usc" parsable-cite="usc/31/3512">section 3512(c)</external-xref> of title 31, United States Code, that provides reasonable <p> assurance of—</text> <p> <subparagraph commented="no" id="H48BE34C33C1C4ED8A5CEF0BEEF74F05E"><enum>(A)</enum><text>the effectiveness and <p> efficiency of operations, including the use of the resources of the <p> TARP;</text> <p> </subparagraph><subparagraph commented="no" id="H386EC37259214BADB0A500163EA4B45"><enum>(B)</enum><text>the reliability of <p> financial reporting, including financial statements and other reports for <p> internal and external use; and</text> <p> </subparagraph><subparagraph commented="no" id="HBC27B8585A964653A64400B007045EB"><enum>(C)</enum><text>compliance with <p> applicable laws and regulations.</text> <p> </subparagraph></paragraph><paragraph commented="no" id="H8EBD6ABD48E04B7D861B34E5B31BC5BE"><enum>(2)</enum><header>Reporting</header><text>In <p> conjunction with each annual financial statement issued under this section, the <p> TARP shall—</text> <p> <subparagraph commented="no" id="H2227A0F154E145068B539FD8AFA9A2E2"><enum>(A)</enum><text>state the responsibility <p> of management for establishing and maintaining adequate internal control over <p> financial reporting; and</text> <p> </subparagraph><subparagraph commented="no" id="H43F906B0105B44FEA4F3701F88003BCD"><enum>(B)</enum><text>state its assessment, as <p> of the end of the most recent year covered by such financial statement of the <p> TARP, of the effectiveness of the internal control over financial <p> reporting.</text> <p> </subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id72C6F70F53944BDC9A5D5EFB15C79254"><enum>(d)</enum><header>Sharing of <p> information</header><text>Any report or audit required under this section shall <p> also be submitted to the Congressional Oversight Panel established under <p> section 125.</text> <p> </subsection><subsection id="id1F84EEE20C2249658BB17D4BBE86D45F"><enum>(e)</enum><header>Termination</header><text>Any <p> oversight, reporting, or audit requirement under this section shall terminate <p> on the later of—</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="idD5E3F9348AEB4B779669805FC1672A09"><enum>(1)</enum><text>the date that the last <p> troubled asset acquired by the Secretary under section 101 has been sold or <p> transferred out of the ownership or control of the Federal Government; <p> or</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idE824107166274AD295F55ABBFFA20A71"><enum>(2)</enum><text>the date of expiration of <p> the last insurance contract issued under section 102.</text> <p> </paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HEEC44684D74B4A779213D178A91FBFD8" section-type="subsequent-section"><enum>117.</enum><header>Study and report on <p> margin authority</header> <p> <subsection commented="no" id="H0AFF47B9952245B286F1AC50B8148DA9"><enum>(a)</enum><header>Study</header><text>The <p> Comptroller General shall undertake a study to determine the extent to which <p> leverage and sudden deleveraging of financial institutions was a factor behind <p> the current financial crisis.</text> <p> </subsection><subsection commented="no" id="H15FBDF0F3F4A4991B5C06CF6F9C48499"><enum>(b)</enum><header>Content</header><text>The <p> study required by this section shall include—</text> <p> <paragraph commented="no" id="H6C534FC338BB4F8CBA53960057797504"><enum>(1)</enum><text>an analysis of the roles <p> and responsibilities of the Board, the Securities and Exchange Commission, the <p> Secretary, and other Federal banking agencies with respect to monitoring <p> leverage and acting to curtail excessive leveraging;</text> <p> </paragraph><paragraph commented="no" id="H6F378EE411B14471B3B200E316D1E7A0"><enum>(2)</enum><text>an analysis of the <p> authority of the Board to regulate leverage, including by setting margin <p> requirements, and what process the Board used to decide whether or not to use <p> its authority;</text> <p> </paragraph><paragraph commented="no" id="HEA72AF40357D4055B2C31FA131EE41AF"><enum>(3)</enum><text>an analysis of any usage <p> of the margin authority by the Board; and</text> <p> </paragraph><paragraph commented="no" id="HF39388B36520444B824600B720E2EF52"><enum>(4)</enum><text>recommendations for the <p> Board and appropriate committees of Congress with respect to the existing <p> authority of the Board.</text> <p> </paragraph></subsection><subsection commented="no" id="H3F818295E5AA4344A449E7D1FEB0477"><enum>(c)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than June 1, 2009, the <p> Comptroller General shall complete and submit a report on the study required by <p> this section to the Committee on Banking, Housing, and Urban Affairs of the <p> Senate and the Committee on Financial Services of the House of <p> Representatives.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="idEB388D33F64C40F7B3115611D1778F9A"><enum>(d)</enum><header>Sharing of <p> information</header><text>Any reports required under this section shall also be <p> submitted to the Congressional Oversight Panel established under section <p> 125.</text> <p> </subsection></section><section id="HA5B4B2703CFF4A36864145459BD34EE5"><enum>118.</enum><header>Funding</header><text display-inline="no-display-inline">For the purpose of the authorities granted <p> in this Act, and for the costs of administering those authorities, the <p> Secretary may use the proceeds of the sale of any securities issued under <p> <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/31">chapter 31</external-xref> of title 31, United States Code, and the purposes for which <p> securities may be issued under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/31">chapter 31</external-xref> of title 31, United States Code, are <p> extended to include actions authorized by this Act, including the payment of <p> administrative expenses. Any funds expended or obligated by the Secretary for <p> actions authorized by this Act, including the payment of administrative <p> expenses, shall be deemed appropriated at the time of such expenditure or <p> obligation.</text> <p> </section><section id="idA3A89637E3D349E4AFD1C880C9D7AF48"><enum>119.</enum><header>Judicial review and <p> related matters</header> <p> <subsection id="IDfd85a85be8464729973d71d75f0f4239"><enum>(a)</enum><header>Judicial <p> review</header> <p> <paragraph id="ID737ed94bf68348b5a9ee01fda00de120"><enum>(1)</enum><header>Standard</header><text>Actions <p> by the Secretary pursuant to the authority of this Act shall be subject to <p> <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/7">chapter 7</external-xref> of title 5, United States Code, including that such final actions <p> shall be held unlawful and set aside if found to be arbitrary, capricious, an <p> abuse of discretion, or not in accordance with law.</text> <p> </paragraph><paragraph id="ID535ff72df5984ed992bb7d8171182385"><enum>(2)</enum><header>Limitations on <p> equitable relief</header> <p> <subparagraph id="ID2f165cf3a789458ca676681c7735a77e"><enum>(A)</enum><header>Injunction</header><text>No <p> injunction or other form of equitable relief shall be issued against the <p> Secretary for actions pursuant to section 101, 102, 106, and 109, other than to <p> remedy a violation of the Constitution.</text> <p> </subparagraph><subparagraph id="ID711be2a1c981420ca3f3ce7f9417d255"><enum>(B)</enum><header>Temporary restraining <p> order</header><text>Any request for a temporary restraining order against the <p> Secretary for actions pursuant to this Act shall be considered and granted or <p> denied by the court within 3 days of the date of the request.</text> <p> </subparagraph><subparagraph id="IDe58c31c6314c4d339a9fbe4eedaa7d15"><enum>(C)</enum><header>Preliminary <p> injunction</header><text>Any request for a preliminary injunction against the <p> Secretary for actions pursuant to this Act shall be considered and granted or <p> denied by the court on an expedited basis consistent with the provisions of <p> rule 65(b)(3) of the Federal Rules of Civil Procedure, or any successor <p> thereto.</text> <p> </subparagraph><subparagraph id="ID393898196fa9480a8abad71c5da05250"><enum>(D)</enum><header>Permanent <p> injunction</header><text>Any request for a permanent injunction against the <p> Secretary for actions pursuant to this Act shall be considered and granted or <p> denied by the court on an expedited basis. Whenever possible, the court shall <p> consolidate trial on the merits with any hearing on a request for a preliminary <p> injunction, consistent with the provisions of rule 65(a)(2) of the Federal <p> Rules of Civil Procedure, or any successor thereto.</text> <p> </subparagraph></paragraph><paragraph id="ID85cd1e6f23e2446f824770a31f772aba"><enum>(3)</enum><header>Limitation on actions <p> by participating companies</header><text>No action or claims may be brought <p> against the Secretary by any person that divests its assets with respect to its <p> participation in a program under this Act, except as provided in paragraph (1), <p> other than as expressly provided in a written contract with the <p> Secretary.</text> <p> </paragraph><paragraph id="IDa7bad5b1964246508ed50902720918f4"><enum>(4)</enum><header>Stays</header><text>Any <p> injunction or other form of equitable relief issued against the Secretary for <p> actions pursuant to section 101, 102, 106, and 109, shall be automatically <p> stayed. The stay shall be lifted unless the Secretary seeks a stay from a <p> higher court within 3 calendar days after the date on which the relief is <p> issued.</text> <p> </paragraph></subsection><subsection id="IDbd16a1fb29184a9f99c1502762423866"><enum>(b)</enum><header>Related <p> matters</header> <p> <paragraph commented="no" id="ID82bb797544d34326ac01f31a31d35593"><enum>(1)</enum><header>Treatment of <p> homeowners' rights</header><text>The terms of any residential mortgage loan <p> that is part of any purchase by the Secretary under this Act shall remain <p> subject to all claims and defenses that would otherwise apply, notwithstanding <p> the exercise of authority by the Secretary under this Act.</text> <p> </paragraph><paragraph id="ID7c7bd03d381c4e2ea6b91ad2db16f9ab"><enum>(2)</enum><header>Savings <p> clause</header><text>Any exercise of the authority of the Secretary pursuant to <p> this Act shall not impair the claims or defenses that would otherwise apply <p> with respect to persons other than the Secretary. Except as established in any <p> contract, a servicer of pooled residential mortgages owes any duty to determine <p> whether the net present value of the payments on the loan, as modified, is <p> likely to be greater than the anticipated net recovery that would result from <p> foreclosure to all investors and holders of beneficial interests in such <p> investment, but not to any individual or groups of investors or beneficial <p> interest holders, and shall be deemed to act in the best interests of all such <p> investors or holders of beneficial interests if the servicer agrees to or <p> implements a modification or workout plan when the servicer takes reasonable <p> loss mitigation actions, including partial payments.</text> <p> </paragraph></subsection></section><section display-inline="no-display-inline" id="HEFC14F3DB8104D74B039C7CD89B4CB6" section-type="subsequent-section"><enum>120.</enum><header>Termination of <p> authority</header> <p> <subsection id="H4F21B1FF505C4057A159D6E345E8DBB"><enum>(a)</enum><header>Termination</header><text display-inline="yes-display-inline">The authorities provided under sections <p> 101(a), excluding section 101(a)(3), and 102 shall terminate on December 31, <p> 2009.</text> <p> </subsection><subsection id="H5CC9121102244F6DB73BCD5876447EE2"><enum>(b)</enum><header>Extension upon <p> certification</header><text display-inline="yes-display-inline">The Secretary, <p> upon submission of a written certification to Congress, may extend the <p> authority provided under this Act to expire not later than 2 years from the <p> date of enactment of this Act. Such certification shall include a justification <p> of why the extension is necessary to assist American families and stabilize <p> financial markets, as well as the expected cost to the taxpayers for such an <p> extension.</text> <p> </subsection></section><section commented="no" display-inline="no-display-inline" id="HF6B9710DB26542A796B3A951D9B4A96C" section-type="subsequent-section"><enum>121.</enum><header>Special Inspector <p> General for the Troubled Asset Relief Program</header> <p> <subsection commented="no" id="H6F6552EAC0BB4C018775D7FEAD03B765"><enum>(a)</enum><header>Office of Inspector <p> General</header><text>There is hereby established the Office of the Special <p> Inspector General for the Troubled Asset Relief Program.</text> <p> </subsection><subsection commented="no" id="H37842AF32B92405381DFB3CC77628C66"><enum>(b)</enum><header>Appointment of <p> Inspector General; removal</header><paragraph commented="no" display-inline="yes-display-inline" id="HD5696747B6D44E3DAAEE00CA1E39EBBB"><enum>(1)</enum><text>The head of the Office <p> of the Special Inspector General for the Troubled Asset Relief Program is the <p> Special Inspector General for the Troubled Asset Relief Program (in this <p> section referred to as the <quote>Special Inspector General</quote>), who shall <p> be appointed by the President, by and with the advice and consent of the <p> Senate.</text> <p> </paragraph><paragraph changed="added" commented="no" id="H35CB50655FD140A2A0CC402D18774C04" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>The appointment of the <p> Special Inspector General shall be made on the basis of integrity and <p> demonstrated ability in accounting, auditing, financial analysis, law, <p> management analysis, public administration, or investigations.</text> <p> </paragraph><paragraph changed="added" commented="no" id="H8F93ACD3540D49A7B34EC0DB178221D8" indent="up1" reported-display-style="italic"><enum>(3)</enum><text>The nomination of an <p> individual as Special Inspector General shall be made as soon as practicable <p> after the establishment of any program under sections 101 and 102.</text> <p> </paragraph><paragraph changed="added" commented="no" id="HFF71BAFF7E2544D6AD004745A83C5C00" indent="up1" reported-display-style="italic"><enum>(4)</enum><text>The Special Inspector <p> General shall be removable from office in accordance with the provisions of <p> <external-xref legal-doc="usc-act" parsable-cite="usc-act/Inspector General Act of 1978 /3">section 3(b)</external-xref> of the Inspector General Act of 1978 (5 U.S.C. App.).</text> <p> </paragraph><paragraph changed="added" commented="no" id="HA2B1ABBA322C4889AF6CBBD625168E5B" indent="up1" reported-display-style="italic"><enum>(5)</enum><text>For purposes of section <p> 7324 of title 5, United States Code, the Special Inspector General shall not be <p> considered an employee who determines policies to be pursued by the United <p> States in the nationwide administration of Federal law.</text> <p> </paragraph><paragraph changed="added" commented="no" id="HFC70C47E8FAD4CD0A5106B179456D485" indent="up1" reported-display-style="italic"><enum>(6)</enum><text>The annual rate of basic <p> pay of the Special Inspector General shall be the annual rate of basic pay for <p> an Inspector General under <external-xref legal-doc="usc-act" parsable-cite="usc-act/Inspector General Act of 1978 /3">section 3(e)</external-xref> of the Inspector General Act of 1978 (5 <p> U.S.C. App.).</text> <p> </paragraph></subsection><subsection commented="no" id="H13CFD12E2D6045929277E8854BE60800"><enum>(c)</enum><header>Duties</header><paragraph commented="no" display-inline="yes-display-inline" id="H066AB0AB859A4C4F8CB1D2FCE41BB214"><enum>(1)</enum><text>It shall be the duty of <p> the Special Inspector General to conduct, supervise, and coordinate audits and <p> investigations of the purchase, management, and sale of assets by the Secretary <p> of the Treasury under any program established by the Secretary under section <p> 101, and the management by the Secretary of any program established under <p> section 102, including by collecting and summarizing the following <p> information:</text> <p> <subparagraph changed="added" commented="no" id="HD57E442555464BA8BA050800F1C7654D" indent="up1" reported-display-style="italic"><enum>(A)</enum><text>A description of the <p> categories of troubled assets purchased or otherwise procured by the <p> Secretary.</text> <p> </subparagraph><subparagraph changed="added" commented="no" id="HBE344C4B69A940C281D09B6F584F08D9" indent="up1" reported-display-style="italic"><enum>(B)</enum><text>A listing of the troubled <p> assets purchased in each such category described under subparagraph (A).</text> <p> </subparagraph><subparagraph changed="added" commented="no" id="HA8EB6062F4EA43BD81AEB0752E68C5E" indent="up1" reported-display-style="italic"><enum>(C)</enum><text>An <p> explanation of the reasons the Secretary deemed it necessary to purchase each <p> such troubled asset.</text> <p> </subparagraph><subparagraph changed="added" commented="no" id="H5742D83AA94F4E23975917D3E2A17DF2" indent="up1" reported-display-style="italic"><enum>(D)</enum><text>A listing of each <p> financial institution that such troubled assets were purchased from.</text> <p> </subparagraph><subparagraph changed="added" commented="no" id="HADC934C194E64D31BF5978AE24CEEEF" indent="up1" reported-display-style="italic"><enum>(E)</enum><text>A <p> listing of and detailed biographical information on each person or entity hired <p> to manage such troubled assets.</text> <p> </subparagraph><subparagraph changed="added" commented="no" id="HB67F39AB9BC74975B94FAEE6BCDA3CFE" indent="up1" reported-display-style="italic"><enum>(F)</enum><text>A current estimate of the <p> total amount of troubled assets purchased pursuant to any program established <p> under section 101, the amount of troubled assets on the books of the Treasury, <p> the amount of troubled assets sold, and the profit and loss incurred on each <p> sale or disposition of each such troubled asset.</text> <p> </subparagraph><subparagraph changed="added" commented="no" id="idEEFBF6ED70F94074B60964CCF16C0FBD" indent="up1" reported-display-style="italic"><enum>(G)</enum><text>A listing of the <p> insurance contracts issued under section 102.</text> <p> </subparagraph></paragraph><paragraph changed="added" commented="no" id="HE0773E1176F44752B142CAAD9156B1AB" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>The Special Inspector <p> General shall establish, maintain, and oversee such systems, procedures, and <p> controls as the Special Inspector General considers appropriate to discharge <p> the duty under paragraph (1).</text> <p> </paragraph><paragraph changed="added" commented="no" id="H545E0A5618C44513B94DFC5398EF25EB" indent="up1" reported-display-style="italic"><enum>(3)</enum><text>In addition to the duties <p> specified in paragraphs (1) and (2), the Inspector General shall also have the <p> duties and responsibilities of inspectors general under the Inspector General <p> Act of 1978.</text> <p> </paragraph></subsection><subsection commented="no" id="H9288419FCEF54E6096FA197DAE36E413"><enum>(d)</enum><header>Powers and <p> authorities</header><paragraph commented="no" display-inline="yes-display-inline" id="H7D16601DD83B4249960484CE00A74F96"><enum>(1)</enum><text>In carrying out the <p> duties specified in subsection (c), the Special Inspector General shall have <p> the authorities provided in section 6 of the Inspector General Act of <p> 1978.</text> <p> </paragraph><paragraph changed="added" commented="no" id="H62D24C238E994CEA921FB87839FF00F6" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>The Special Inspector <p> General shall carry out the duties specified in subsection (c)(1) in accordance <p> with section 4(b)(1) of the Inspector General Act of 1978.</text> <p> </paragraph></subsection><subsection commented="no" id="HAE7ACF34BBA14737B366DCE124397F36"><enum>(e)</enum><header>Personnel, facilities, <p> and other resources</header><paragraph commented="no" display-inline="yes-display-inline" id="H6C1EB49C7FDB4E08926B379B25F915CF"><enum>(1)</enum><text>The Special Inspector <p> General may select, appoint, and employ such officers and employees as may be <p> necessary for carrying out the duties of the Special Inspector General, subject <p> to the provisions of title 5, United States Code, governing appointments in the <p> competitive service, and the provisions of chapter 51 and subchapter III of <p> chapter 53 of such title, relating to classification and General Schedule pay <p> rates.</text> <p> </paragraph><paragraph changed="added" commented="no" id="HF646E4B8B0D44A2E8FF3431BB65242D" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>The Special Inspector <p> General may obtain services as authorized by <external-xref legal-doc="usc" parsable-cite="usc/5/3109">section 3109</external-xref> of title 5, United <p> States Code, at daily rates not to exceed the equivalent rate prescribed for <p> grade GS–15 of the General Schedule by section 5332 of such title.</text> <p> </paragraph><paragraph changed="added" commented="no" id="H9030DBEE3A7641CE88C1BDC37BC6D49" indent="up1" reported-display-style="italic"><enum>(3)</enum><text>The Special Inspector <p> General may enter into contracts and other arrangements for audits, studies, <p> analyses, and other services with public agencies and with private persons, and <p> make such payments as may be necessary to carry out the duties of the Inspector <p> General.</text> <p> </paragraph><paragraph changed="added" commented="no" id="H68FCB1341AA34AF78B421FF2F98727E3" indent="up1" reported-display-style="italic"><enum>(4)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HEB6D1521946F4F1DB6B480F7A8EFA197"><enum>(A)</enum><text>Upon request of the <p> Special Inspector General for information or assistance from any department, <p> agency, or other entity of the Federal Government, the head of such entity <p> shall, insofar as is practicable and not in contravention of any existing law, <p> furnish such information or assistance to the Special Inspector General, or an <p> authorized designee.</text> <p> </subparagraph><subparagraph changed="added" commented="no" id="H3D27224BEF6B45FAB3BE62A58CF4A7D9" indent="up1" reported-display-style="italic"><enum>(B)</enum><text>Whenever information or <p> assistance requested by the Special Inspector General is, in the judgment of <p> the Special Inspector General, unreasonably refused or not provided, the <p> Special Inspector General shall report the circumstances to the appropriate <p> committees of Congress without delay.</text> <p> </subparagraph></paragraph></subsection><subsection commented="no" id="H5A58A18FB3A944DEB4E0957C2F6244"><enum>(f)</enum><header>Reports</header><paragraph commented="no" display-inline="yes-display-inline" id="H8612D479217741F1A3A6FAC998ED004F"><enum>(1)</enum><text>Not later than 60 days <p> after the confirmation of the Special Inspector General, and every calendar <p> quarter thereafter, the Special Inspector General shall submit to the <p> appropriate committees of Congress a report summarizing the activities of the <p> Special Inspector General during the 120-day period ending on the date of such <p> report. Each report shall include, for the period covered by such report, a <p> detailed statement of all purchases, obligations, expenditures, and revenues <p> associated with any program established by the Secretary of the Treasury under <p> sections 101 and 102, as well as the information collected under subsection <p> (c)(1).</text> <p> </paragraph><paragraph changed="added" commented="no" id="HFC58BAAFC17041DD8FC76B6FB4A4FA96" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>Nothing in this <p> subsection shall be construed to authorize the public disclosure of information <p> that is—</text> <p> <subparagraph commented="no" id="H6056CCCE3A5B490B88682E766344B6BF"><enum>(A)</enum><text>specifically prohibited <p> from disclosure by any other provision of law;</text> <p> </subparagraph><subparagraph commented="no" id="HC59B381515374CA885AB2207477C1B3E"><enum>(B)</enum><text>specifically required by <p> Executive order to be protected from disclosure in the interest of national <p> defense or national security or in the conduct of foreign affairs; or</text> <p> </subparagraph><subparagraph commented="no" id="HC1476DF1D5284F649BF4F1EF374E14D3"><enum>(C)</enum><text>a part of an ongoing <p> criminal investigation.</text> <p> </subparagraph></paragraph><paragraph changed="added" commented="no" id="id2CFEC063F4394919AE6B3C6F670A1F48" indent="up1" reported-display-style="italic"><enum>(3)</enum><text>Any reports required <p> under this section shall also be submitted to the Congressional Oversight Panel <p> established under section 125.</text> <p> </paragraph></subsection><subsection commented="no" id="H5EF2689BD1BF41279EE1D9BB5600A54E"><enum>(g)</enum><header>Funding</header><paragraph commented="no" display-inline="yes-display-inline" id="H63D1840806D545949EE400F91FB3C5BB"><enum>(1)</enum><text>Of the amounts made <p> available to the Secretary of the Treasury under section 118, $50,000,000 shall <p> be available to the Special Inspector General to carry out this section.</text> <p> </paragraph><paragraph changed="added" commented="no" id="H192AE5504C474646AD3423748D9C6B36" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>The amount available <p> under paragraph (1) shall remain available until expended.</text> <p> </paragraph></subsection><subsection id="id8FB78ACF2FF04342888EC7DA6303FE02"><enum>(h)</enum><header>Termination</header><text>The <p> Office of the Special Inspector General shall terminate on the later of—</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="id8B76BE5850914689AD5A96A29D3A5AEE"><enum>(1)</enum><text>the date that the last <p> troubled asset acquired by the Secretary under section 101 has been sold or <p> transferred out of the ownership or control of the Federal Government; <p> or</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idC01502DAB38E48CE8CAA231B812B897D"><enum>(2)</enum><text>the date of expiration of <p> the last insurance contract issued under section 102.</text> <p> </paragraph></subsection></section><section id="H75584626FCB3489CA6A50022952EDEEE"><enum>122.</enum><header>Increase in statutory <p> limit on the public debt</header><text display-inline="no-display-inline">Subsection (b) of <external-xref legal-doc="usc" parsable-cite="usc/31/3101">section 3101</external-xref> of title 31, <p> United States Code, is amended by striking out the dollar limitation contained <p> in such subsection and inserting <quote>$11,315,000,000,000</quote>.</text> <p> </section><section id="HFCBFC12D1FC845D79F7F83CBD51DE137"><enum>123.</enum><header>Credit reform</header> <p> <subsection id="HC0851EDDA7444206B82F3FAA8817E7D1"><enum>(a)</enum><header>In <p> General</header><text display-inline="yes-display-inline">Subject to subsection <p> (b), the costs of purchases of troubled assets made under section 101(a) and <p> guarantees of troubled assets under section 102, and any cash flows associated <p> with the activities authorized in section 102 and subsections (a), (b), and (c) <p> of section 106 shall be determined as provided under the Federal Credit Reform <p> Act of 1990 (2 U.S.C. 661 et. seq.).</text> <p> </subsection><subsection id="H5F19FA5D681E48D0AA50FABA505E53FB"><enum>(b)</enum><header>Costs</header><text>For <p> the purposes of section 502(5) of the Federal Credit Reform Act of 1990 (2 <p> U.S.C. 661a(5))—</text> <p> <paragraph id="HA6EFC3AD1A494E9400B3D5FF04385718"><enum>(1)</enum><text>the cost of troubled <p> assets and guarantees of troubled assets shall be calculated by adjusting the <p> discount rate in section 502(5)(E) (<external-xref legal-doc="usc" parsable-cite="usc/2/661a">2 U.S.C. 661a(5)(E)</external-xref>) for market risks; <p> and</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H255A02BFA6A74F5097891E38B2988938"><enum>(2)</enum><text>the cost of a <p> modification of a troubled asset or guarantee of a troubled asset shall be the <p> difference between the current estimate consistent with paragraph (1) under the <p> terms of the troubled asset or guarantee of the troubled asset and the current <p> estimate consistent with paragraph (1) under the terms of the troubled asset or <p> guarantee of the troubled asset, as modified.</text> <p> </paragraph></subsection></section><section commented="no" id="H24D2182264CA45BC8D20F8CD913E29"><enum>124.</enum><header>HOPE for Homeowners <p> amendments</header><text display-inline="no-display-inline">Section 257 of the <p> National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-23">12 U.S.C. 1715z–23</external-xref>) is amended—</text> <p> <paragraph commented="no" id="id463BAED828C940598965F5FF04E296B1"><enum>(1)</enum><text>in subsection (e)—</text> <p> <subparagraph commented="no" id="H64CEFB69877149059536A72634002F30"><enum>(A)</enum><text>in paragraph (1)(B), by <p> inserting before <quote>a ratio</quote> the following: <quote>, or thereafter <p> is likely to have, due to the terms of the mortgage being <p> reset,</quote>;</text> <p> </subparagraph><subparagraph commented="no" id="H09C281FD20CB4E5C89C0F8DE9EEED56C"><enum>(B)</enum><text>in paragraph (2)(B), by <p> inserting before the period at the end <quote>(or such higher percentage as the <p> Board determines, in the discretion of the Board)</quote>;</text> <p> </subparagraph><subparagraph commented="no" id="idB3E08D95EC10486DAD37A11DA94623ED"><enum>(C)</enum><text>in paragraph <p> (4)(A)—</text> <p> <clause commented="no" id="id6D4903A871B040108F508EFDFD3EAEE8"><enum>(i)</enum><text>in the first sentence, by <p> inserting after <quote>insured loan</quote> the following: <quote>and any <p> payments made under this paragraph,</quote>; and</text> <p> </clause><clause commented="no" id="id413301A7100D4383A9C4419FE0673DC9"><enum>(ii)</enum><text>by adding at the end the <p> following: <quote>Such actions may include making payments, which shall be <p> accepted as payment in full of all indebtedness under the eligible mortgage, to <p> any holder of an existing subordinate mortgage, in lieu of any future <p> appreciation payments authorized under subparagraph (B).</quote>; and</text> <p> </clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id09FD0A5A10884FC7813A6F2319985CE5"><enum>(2)</enum><text>in subsection (w), by <p> inserting after <quote>administrative costs</quote> the following: <quote>and <p> payments pursuant to subsection (e)(4)(A)</quote>.</text> <p> </paragraph></section><section commented="no" display-inline="no-display-inline" id="HE85DCF2855824418B3DA887B390203D8" section-type="subsequent-section"><enum>125.</enum><header>Congressional <p> Oversight Panel</header> <p> <subsection commented="no" id="H6577E08326B249B689D8031F54514B6C"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">There is hereby established the <p> Congressional Oversight Panel (hereafter in this section referred to as the <p> <quote>Oversight Panel</quote>) as an establishment in the legislative <p> branch.</text> <p> </subsection><subsection commented="no" id="H24F69401D2CB4AD2991F2BD4895FE5C4"><enum>(b)</enum><header>Duties</header><text>The <p> Oversight Panel shall review the current state of the financial markets and the <p> regulatory system and submit the following reports to Congress:</text> <p> <paragraph commented="no" id="id3C088EF871C84837AB9ACECEBD01DE89"><enum>(1)</enum><header>Regular <p> reports</header> <p> <subparagraph commented="no" id="idF7A424EA05344C41B05B7E6590CD8E0E"><enum>(A)</enum><header>In <p> general</header><text>Regular reports of the Oversight Panel shall include the <p> following:</text> <p> <clause commented="no" id="id31CE15E2CC014FB78600568FB9F27B94"><enum>(i)</enum><text>The use by the Secretary <p> of authority under this Act, including with respect to the use of contracting <p> authority and administration of the program.</text> <p> </clause><clause commented="no" id="idEB34643F540D4DD480FD2391C1677E00"><enum>(ii)</enum><text>The impact of purchases <p> made under the Act on the financial markets and financial institutions.</text> <p> </clause><clause commented="no" id="id802FABA397364868A7211661952415EF"><enum>(iii)</enum><text>The extent to which the <p> information made available on transactions under the program has contributed to <p> market transparency.</text> <p> </clause><clause commented="no" id="idACD07B10DFD64411948CDE6571F00BB0"><enum>(iv)</enum><text>The effectiveness of <p> foreclosure mitigation efforts, and the effectiveness of the program from the <p> standpoint of minimizing long-term costs to the taxpayers and maximizing the <p> benefits for taxpayers.</text> <p> </clause></subparagraph><subparagraph commented="no" id="idC1EF0570913D49B392468D428817B50D"><enum>(B)</enum><header>Timing</header><text>The <p> reports required under this paragraph shall be submitted not later than 30 days <p> after the first exercise by the Secretary of the authority under section 101(a) <p> or 102, and every 30 days thereafter.</text> <p> </subparagraph></paragraph><paragraph commented="no" id="id6ECF9F49E9404B7980E2BDF6E547CC2F"><enum>(2)</enum><header>Special report on <p> regulatory reform</header><text>The Oversight Panel shall submit a special <p> report on regulatory reform not later than January 20, 2009, analyzing the <p> current state of the regulatory system and its effectiveness at overseeing the <p> participants in the financial system and protecting consumers, and providing <p> recommendations for improvement, including recommendations regarding whether <p> any participants in the financial markets that are currently outside the <p> regulatory system should become subject to the regulatory system, the rationale <p> underlying such recommendation, and whether there are any gaps in existing <p> consumer protections.</text> <p> </paragraph></subsection><subsection commented="no" id="H24F09555062C45A3AA970079C85B3326"><enum>(c)</enum><header>Membership</header> <p> <paragraph id="id55839F8053C94670AC529356A483C56F"><enum>(1)</enum><header>In <p> general</header><text>The Oversight Panel shall consist of 5 members, as <p> follows:</text> <p> <subparagraph id="id164FD86BB8384B018A06A5D5EB63F728"><enum>(A)</enum><text>1 member appointed by the <p> Speaker of the House of Representatives.</text> <p> </subparagraph><subparagraph id="idA34F21B6928C4DF18618E019F9A2C9E1"><enum>(B)</enum><text>1 member appointed by the <p> minority leader of the House of Representatives.</text> <p> </subparagraph><subparagraph id="idA535125FEB9C43E9A1E6775478E2D597"><enum>(C)</enum><text>1 member appointed by the <p> majority leader of the Senate.</text> <p> </subparagraph><subparagraph id="idB56093B1E68342999F8EF5BB9CAF8D8D"><enum>(D)</enum><text>1 member appointed by the <p> minority leader of the Senate.</text> <p> </subparagraph><subparagraph id="id07B6A1C6AE2C444D8FC58116197B780F"><enum>(E)</enum><text>1 member appointed by the <p> Speaker of the House of Representatives and the majority leader of the Senate, <p> after consultation with the minority leader of the Senate and the minority <p> leader of the House of Representatives.</text> <p> </subparagraph></paragraph><paragraph commented="no" id="HA385A565F399408B934D546851C3CA4C"><enum>(2)</enum><header>Pay</header><text>Each <p> member of the Oversight Panel shall each be paid at a rate equal to the daily <p> equivalent of the annual rate of basic pay for level I of the Executive <p> Schedule for each day (including travel time) during which such member is <p> engaged in the actual performance of duties vested in the Commission.</text> <p> </paragraph><paragraph id="idA2AB1B7BD1C64806BE80F30B88C1795F"><enum>(3)</enum><header>Prohibition of <p> compensation of federal employees</header><text>Members of the Oversight Panel <p> who are full-time officers or employees of the United States or Members of <p> Congress may not receive additional pay, allowances, or benefits by reason of <p> their service on the Oversight Panel.</text> <p> </paragraph><paragraph commented="no" id="id72CC433F664447909A3D5B77B21FA187"><enum>(4)</enum><header>Travel <p> expenses</header><text>Each member shall receive travel expenses, including per <p> diem in lieu of subsistence, in accordance with applicable provisions under <p> subchapter I of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/57">chapter 57</external-xref> of title 5, United States Code.</text> <p> </paragraph><paragraph commented="no" id="id372A1103F38442358F248EC5E7946466"><enum>(5)</enum><header>Quorum</header><text>Four <p> members of the Oversight Panel shall constitute a quorum but a lesser number <p> may hold hearings.</text> <p> </paragraph><paragraph commented="no" id="id132EC4EA966F4599AB9E3AAABCC6E7F2"><enum>(6)</enum><header>Vacancies</header><text>A <p> vacancy on the Oversight Panel shall be filled in the manner in which the <p> original appointment was made.</text> <p> </paragraph><paragraph commented="no" id="H8E5245BB64064B7FA0A6FA1ED1507C8E"><enum>(7)</enum><header>Meetings</header><text>The <p> Oversight Panel shall meet at the call of the Chairperson or a majority of its <p> members.</text> <p> </paragraph></subsection><subsection commented="no" id="HD27A904D0D48424493CCC3871893D94F"><enum>(d)</enum><header>Staff</header> <p> <paragraph commented="no" id="H035D6843993B42A4AE5F65A2D6B10073"><enum>(1)</enum><header>In <p> general</header><text display-inline="yes-display-inline">The Oversight Panel <p> may appoint and fix the pay of any personnel as the Commission considers <p> appropriate.</text> <p> </paragraph><paragraph commented="no" id="HF088059385564FF9B63366C450FF176F"><enum>(2)</enum><header>Experts and <p> consultants</header><text>The Oversight Panel may procure temporary and <p> intermittent services under <external-xref legal-doc="usc" parsable-cite="usc/5/3109">section 3109(b)</external-xref> of title 5, United States <p> Code.</text> <p> </paragraph><paragraph commented="no" id="H663367B48DFF473B82482E33C59C691C"><enum>(3)</enum><header>Staff of <p> agencies</header><text>Upon request of the Oversight Panel, the head of any <p> Federal department or agency may detail, on a reimbursable basis, any of the <p> personnel of that department or agency to the Oversight Panel to assist it in <p> carrying out its duties under this Act.</text> <p> </paragraph></subsection><subsection commented="no" id="id5CC4BAD858574AD3A19CA3DCD90EED2E"><enum>(e)</enum><header>Powers</header> <p> <paragraph commented="no" id="IDd004d0bdd2b544c3a7f468d2266fdc98"><enum>(1)</enum><header>Hearings and <p> sessions</header><text>The Oversight Panel may, for the purpose of carrying out <p> this section, hold hearings, sit and act at times and places, take testimony, <p> and receive evidence as the Panel considers appropriate and may administer <p> oaths or affirmations to witnesses appearing before it.</text> <p> </paragraph><paragraph commented="no" id="IDec335c654dfd48758e078784849e1370"><enum>(2)</enum><header>Powers of members and <p> agents</header><text>Any member or agent of the Oversight Panel may, if <p> authorized by the Oversight Panel, take any action which the Oversight Panel is <p> authorized to take by this section.</text> <p> </paragraph><paragraph commented="no" id="ID2a7e8d1835ff48559c448d66c9d212a1"><enum>(3)</enum><header>Obtaining Official <p> Data</header><text>The Oversight Panel may secure directly from any department <p> or agency of the United States information necessary to enable it to carry out <p> this section. Upon request of the Chairperson of the Oversight Panel, the head <p> of that department or agency shall furnish that information to the Oversight <p> Panel.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDa7c8951f7d0d4c4caf2ba1b695cd9e5c"><enum>(4)</enum><header>Reports</header><text>The <p> Oversight Panel shall receive and consider all reports required to be submitted <p> to the Oversight Panel under this Act.</text> <p> </paragraph></subsection><subsection commented="no" id="H4101F5A1C9204EE3B833D6DD803AEFD"><enum>(f)</enum><header>Termination</header><text>The <p> Oversight Panel shall terminate 6 months after the termination date specified <p> in section 120.</text> <p> </subsection><subsection commented="no" id="H9D361DC476674B978602C71DFBCE2023"><enum>(g)</enum><header>Funding for <p> expenses</header> <p> <paragraph commented="no" id="H5E20266F09CB4FE2B4933696EFCCCAE6"><enum>(1)</enum><header>Authorization of <p> appropriations</header><text display-inline="yes-display-inline">There is <p> authorized to be appropriated to the Oversight Panel such sums as may be <p> necessary for any fiscal year, half of which shall be derived from the <p> applicable account of the House of Representatives, and half of which shall be <p> derived from the contingent fund of the Senate.</text> <p> </paragraph><paragraph commented="no" id="HB3338025D0584DBB0034DAEAEBE1C00"><enum>(2)</enum><header>Reimbursement of <p> amounts</header><text>An amount equal to the expenses of the Oversight Panel <p> shall be promptly transferred by the Secretary, from time to time upon the <p> presentment of a statement of such expenses by the Chairperson of the Oversight <p> Panel, from funds made available to the Secretary under this Act to the <p> applicable fund of the House of Representatives and the contingent fund of the <p> Senate, as appropriate, as reimbursement for amounts expended from such account <p> and fund under paragraph (1).</text> <p> </paragraph></subsection></section><section display-inline="no-display-inline" id="HB43D615581D84458B94CBAB400B50024" section-type="subsequent-section"><enum>126.</enum><header>FDIC <p> authority</header> <p> <subsection id="HA9428FDA6B8D4014A2D5402629622B3E"><enum>(a)</enum><header>In <p> General</header><text>Section 18(a) of the <act-name parsable-cite="FDIA">Federal Deposit Insurance Act</act-name> (12 U.S.C. <p> 1828(a)) is amended by adding at the end the following new paragraph:</text> <p> <quoted-block act-name="Federal" changed="added" id="H3A8080EC927546B5A87318A649A9CAC2" reported-display-style="italic" style="OLC"> <p> <paragraph id="H802BC9205638415E981E6D7FAA00BAD"><enum>(4)</enum><header>False advertising, <p> misuse of fdic names, and misrepresentation to indicate insured status</header> <p> <subparagraph id="H109786F8E1004565B1F900C6674358C9"><enum>(A)</enum><header>Prohibition on false <p> advertising and misuse of fdic names</header><text>No person may represent or <p> imply that any deposit liability, obligation, certificate, or share is insured <p> or guaranteed by the Corporation, if such deposit liability, obligation, <p> certificate, or share is not insured or guaranteed by the Corporation—</text> <p> <clause id="HEF6F2FCF2C2A479F97ECF9B1E9E96F00"><enum>(i)</enum><text>by using the terms <p> <term>Federal Deposit</term>, <term>Federal Deposit Insurance</term>, <p> <term>Federal Deposit Insurance Corporation</term>, any combination of such <p> terms, or the abbreviation <quote>FDIC</quote> as part of the business name or <p> firm name of any person, including any corporation, partnership, business <p> trust, association, or other business entity; or</text> <p> </clause><clause id="HE3E9AA2B2D9F4436A141EE8ED276757"><enum>(ii)</enum><text>by using such terms or <p> any other terms, sign, or symbol as part of an advertisement, solicitation, or <p> other document.</text> <p> </clause></subparagraph><subparagraph id="HAE1DF56F07E14A9F8F00FBF01C952256"><enum>(B)</enum><header>Prohibition on <p> misrepresentations of insured status</header><text>No person may knowingly <p> misrepresent—</text> <p> <clause id="HE5F0783ECB76463C80C767D9C1BD7AF"><enum>(i)</enum><text>that any deposit <p> liability, obligation, certificate, or share is insured, under this Act, if <p> such deposit liability, obligation, certificate, or share is not so insured; <p> or</text> <p> </clause><clause id="HD827FAA6A8D04D02B2E5002D31D47E6D"><enum>(ii)</enum><text>the extent to which or <p> the manner in which any deposit liability, obligation, certificate, or share is <p> insured under this Act, if such deposit liability, obligation, certificate, or <p> share is not so insured, to the extent or in the manner represented.</text> <p> </clause></subparagraph><subparagraph id="H487AED67B98E473593FE0082A195934C"><enum>(C)</enum><header>Authority of the <p> appropriate federal banking agency</header><text>The appropriate Federal <p> banking agency shall have enforcement authority in the case of a violation of <p> this paragraph by any person for which the agency is the appropriate Federal <p> banking agency, or any institution-affiliated party thereof.</text> <p> </subparagraph><subparagraph id="H39E65998F26C49FC991EAC5D60246C34"><enum>(D)</enum><header>Corporation authority <p> if the appropriate federal banking agency fails to follow <p> recommendation</header> <p> <clause id="HC88B0A5E267D44AB92BF8CF6A471EBD0"><enum>(i)</enum><header>Recommendation</header><text display-inline="yes-display-inline">The Corporation may recommend in writing to <p> the appropriate Federal banking agency that the agency take any enforcement <p> action authorized under section 8 for purposes of enforcement of this paragraph <p> with respect to any person for which the agency is the appropriate Federal <p> banking agency or any institution-affiliated party thereof.</text> <p> </clause><clause id="H645100DAD9AA429C83B768771F00F692"><enum>(ii)</enum><header>Agency <p> response</header><text>If the appropriate Federal banking agency does not, <p> within 30 days of the date of receipt of a recommendation under clause (i), <p> take the enforcement action with respect to this paragraph recommended by the <p> Corporation or provide a plan acceptable to the Corporation for responding to <p> the situation presented, the Corporation may take the recommended enforcement <p> action against such person or institution-affiliated party.</text> <p> </clause></subparagraph><subparagraph id="HE367441424B44B9DA9F015FE6DF2CD0"><enum>(E)</enum><header>Additional <p> authority</header><text>In addition to its authority under subparagraphs (C) <p> and (D), for purposes of this paragraph, the Corporation shall have, in the <p> same manner and to the same extent as with respect to a State nonmember insured <p> bank—</text> <p> <clause id="H8A5FCF766C444AA4944F4F2310BD9120"><enum>(i)</enum><text>jurisdiction over—</text> <p> <subclause id="HA5DFFB46A24847D59BDF496DF0AF7859"><enum>(I)</enum><text display-inline="yes-display-inline">any person other than a person for which <p> another agency is the appropriate Federal banking agency or any <p> institution-affiliated party thereof; and</text> <p> </subclause><subclause id="HDC5DAC8F4D37425B8C26E5DEE1C98388"><enum>(II)</enum><text>any person that aids or <p> abets a violation of this paragraph by a person described in subclause (I); <p> and</text> <p> </subclause></clause><clause id="H53DB1BBABC734E1DB898ACA99613F360"><enum>(ii)</enum><text display-inline="yes-display-inline">for purposes of enforcing the requirements <p> of this paragraph, the authority of the Corporation under—</text> <p> <subclause id="H63C93EAA0D264F14912F7882E2B9F87"><enum>(I)</enum><text>section 10(c) to conduct <p> investigations; and</text> <p> </subclause><subclause id="H23FF3FF3A6C04CF8B1F88C39D9FC795F"><enum>(II)</enum><text>subsections (b), (c), <p> (d) and (i) of section 8 to conduct enforcement actions.</text> <p> </subclause></clause></subparagraph><subparagraph id="HE539AF929B054C92BF2BD2F2EA9CD29F"><enum>(F)</enum><header>Other actions <p> preserved</header><text>No provision of this paragraph shall be construed as <p> barring any action otherwise available, under the laws of the United States or <p> any State, to any Federal or State agency or <p> individual.</text> <p> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection id="HA530B03534164D249C01BDAD594CA665"><enum>(b)</enum><header>Enforcement <p> Orders</header><text>Section 8(c) of the <act-name parsable-cite="FDIA">Federal <p> Deposit Insurance Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818(c)</external-xref>) is amended by adding at <p> the end the following new paragraph:</text> <p> <quoted-block act-name="Federal" changed="added" id="H75AD564987824C30A8DEA800C9082250" reported-display-style="italic" style="OLC"> <p> <paragraph id="HF6DEF1A661AF460C92C365B4C678B486"><enum>(4)</enum><header>False advertising or <p> misuse of names to indicate insured status</header> <p> <subparagraph id="H30B1F803025C4426AE8BB0FC6EE76355"><enum>(A)</enum><header>Temporary <p> order</header> <p> <clause id="HBFD0651A4938415AA53D99735E9995EC"><enum>(i)</enum><header>In <p> general</header><text>If a notice of charges served under subsection (b)(1) <p> specifies on the basis of particular facts that any person engaged or is <p> engaging in conduct described in section 18(a)(4), the Corporation or other <p> appropriate Federal banking agency may issue a temporary order <p> requiring—</text> <p> <subclause id="H29426389A1974C82A294CE5321D0E192"><enum>(I)</enum><text>the immediate cessation <p> of any activity or practice described, which gave rise to the notice of <p> charges; and</text> <p> </subclause><subclause id="H36711E548DDF4DA58725007F8DD9D851"><enum>(II)</enum><text>affirmative action to <p> prevent any further, or to remedy any existing, violation.</text> <p> </subclause></clause><clause id="H0C1AFA6178FC4DC092FBE7842BB300"><enum>(ii)</enum><header>Effect of <p> order</header><text>Any temporary order issued under this subparagraph shall <p> take effect upon service.</text> <p> </clause></subparagraph><subparagraph id="HA70ECCFA78BE4653A7549516BA72E963"><enum>(B)</enum><header>Effective period of <p> temporary order</header><text>A temporary order issued under subparagraph (A) <p> shall remain effective and enforceable, pending the completion of an <p> administrative proceeding pursuant to subsection (b)(1) in connection with the <p> notice of charges—</text> <p> <clause id="HDFDCB8976511479DBCBBA4DF4D3C3781"><enum>(i)</enum><text display-inline="yes-display-inline">until such time as the Corporation or other <p> appropriate Federal banking agency dismisses the charges specified in such <p> notice; or</text> <p> </clause><clause id="H75A92B74DBAC48669166A6708B65726C"><enum>(ii)</enum><text>if a cease-and-desist <p> order is issued against such person, until the effective date of such <p> order.</text> <p> </clause></subparagraph><subparagraph id="H913B7CAE951F4294B7D083F85DBDF6"><enum>(C)</enum><header>Civil money <p> penalties</header><text display-inline="yes-display-inline">Any violation of <p> section 18(a)(4) shall be subject to civil money penalties, as set forth in <p> subsection (i), except that for any person other than an insured depository <p> institution or an institution-affiliated party that is found to have violated <p> this paragraph, the Corporation or other appropriate Federal banking agency <p> shall not be required to demonstrate any loss to an insured depository <p> institution.</text> <p> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection id="idE4EB408F426841B398BCC40883763484"><enum>(c)</enum><header>Unenforceability of <p> certain agreements</header><text>Section 13(c) of the Federal Deposit Insurance <p> Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1823">12 U.S.C. 1823(c)</external-xref>) is amended by adding at the end the following new <p> paragraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id7A8D4787326642018AADA5B5E0DAC0CD" reported-display-style="italic" style="OLC"> <p> <paragraph id="IDbcea943e74fe4f11a209c3752b692bda"><enum>(11)</enum><header>Unenforceability of <p> certain agreements</header><text>No provision contained in any existing or <p> future standstill, confidentiality, or other agreement that, directly or <p> indirectly—</text> <p> <subparagraph id="ID5e103f236a2e47508c74c3735275e3f9"><enum>(A)</enum><text>affects, restricts, or <p> limits the ability of any person to offer to acquire or acquire,</text> <p> </subparagraph><subparagraph id="ID570097bd57184e7eaf6a129fd27ef1f9"><enum>(B)</enum><text>prohibits any person from <p> offering to acquire or acquiring, or</text> <p> </subparagraph><subparagraph id="ID6b0d4522eb714e7a90a5ef4f2f5f8e44"><enum>(C)</enum><text>prohibits any person from <p> using any previously disclosed information in connection with any such offer to <p> acquire or acquisition of,</text> <p> </subparagraph><continuation-text continuation-text-level="paragraph">all or part of any insured depository <p> institution, including any liabilities, assets, or interest therein, in <p> connection with any transaction in which the Corporation exercises its <p> authority under section 11 or 13, shall be enforceable against or impose any <p> liability on such person, as such enforcement or liability shall be contrary to <p> public <p> policy.</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection id="H8A49C0AE995143DAB746E43D8F64553E"><enum>(d)</enum><header>Technical and <p> Conforming Amendments</header><text display-inline="yes-display-inline">Section <p> 18 of the <act-name parsable-cite="FDIA">Federal Deposit Insurance <p> Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1828">12 U.S.C. 1828</external-xref>) is amended—</text> <p> <paragraph id="HE8CD94EEBD8A4276B29B55D9533C0069"><enum>(1)</enum><text>in subsection <p> (a)(3)—</text> <p> <subparagraph id="HBB2E1E0450DC4467B38D67ADB9C35F64"><enum>(A)</enum><text>by striking <quote>this <p> subsection</quote> the first place that term appears and inserting <p> <quote>paragraph (1)</quote>; and</text> <p> </subparagraph><subparagraph id="H8117489F4EBF479A93F5881F10061BE4"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>this subsection</quote> <p> the second place that term appears and inserting <quote>paragraph (2)</quote>; <p> and</text> <p> </subparagraph></paragraph><paragraph id="H0B1FACB0B3C54E138F974F4DA45C10FC"><enum>(2)</enum><text>in the heading for <p> subsection (a), by striking <quote><header-in-text level="subsection">Insurance <p> Logo</header-in-text>.—</quote> and inserting <quote><header-in-text level="subsection">Representations of Deposit <p> Insurance</header-in-text>.—</quote>.</text> <p> </paragraph></subsection></section><section id="H7E229A2F3B91442B9D72D2F415B81800"><enum>127.</enum><header>Cooperation with the <p> FBI</header><text display-inline="no-display-inline">Any Federal financial <p> regulatory agency shall cooperate with the Federal Bureau of Investigation and <p> other law enforcement agencies investigating fraud, misrepresentation, and <p> malfeasance with respect to development, advertising, and sale of financial <p> products.</text> <p> </section><section id="HA3D14A6B28EE42E8B5CD50AE07953111"><enum>128.</enum><header>Acceleration of <p> effective date</header><text display-inline="no-display-inline">Section 203 of <p> the Financial Services Regulatory Relief Act of 2006 (<external-xref legal-doc="usc" parsable-cite="usc/12/461">12 U.S.C. 461</external-xref> note) is <p> amended by striking <quote>October 1, 2011</quote> and inserting <quote>October <p> 1, 2008</quote>.</text> <p> </section><section commented="no" display-inline="no-display-inline" id="HB2DCF97748C34EA9B0EAC9F0D90842B"><enum>129.</enum><header>Disclosures on <p> exercise of loan authority</header> <p> <subsection commented="no" id="H45D19F84AF3844C1B73D8748CF3700CA"><enum>(a)</enum><header>In <p> general</header><text>Not later than 7 days after the date on which the Board <p> exercises its authority under the third paragraph of section 13 of the Federal <p> Reserve Act (<external-xref legal-doc="usc" parsable-cite="usc/12/343">12 U.S.C. 343</external-xref>; relating to discounts for individuals, <p> partnerships, and corporations) the Board shall provide to the Committee on <p> Banking, Housing, and Urban Affairs of the Senate and the Committee on <p> Financial Services of the House of Representatives a report which <p> includes—</text> <p> <paragraph commented="no" id="HE8AE86C7647D46F2AB3862DC2F842E9"><enum>(1)</enum><text>the justification for <p> exercising the authority; and</text> <p> </paragraph><paragraph commented="no" id="HEA3951C5391C44219C2D8317F3F646B0"><enum>(2)</enum><text>the specific terms of the <p> actions of the Board, including the size and duration of the lending, available <p> information concerning the value of any collateral held with respect to such a <p> loan, the recipient of warrants or any other potential equity in exchange for <p> the loan, and any expected cost to the taxpayers for such exercise.</text> <p> </paragraph></subsection><subsection commented="no" id="H472EAB6B8AD947BAB2CCE008189E05E2"><enum>(b)</enum><header>Periodic <p> updates</header><text>The Board shall provide updates to the Committees <p> specified in subsection (a) not less frequently than once every 60 days while <p> the subject loan is outstanding, including—</text> <p> <paragraph commented="no" id="H7F54D9463BDA43FFB0931381E94412A8"><enum>(1)</enum><text>the status of the <p> loan;</text> <p> </paragraph><paragraph commented="no" id="HE1EDCAE75EFF4535ACDDE0D466C5800"><enum>(2)</enum><text>the value of the <p> collateral held by the Federal reserve bank which initiated the loan; <p> and</text> <p> </paragraph><paragraph commented="no" id="HE09EA30F74B84320895FB0D97807A500"><enum>(3)</enum><text>the projected cost to the <p> taxpayers of the loan.</text> <p> </paragraph></subsection><subsection commented="no" id="H5BA7D7E49307492382DBD754272CEE83"><enum>(c)</enum><header>Confidentiality</header><text>The <p> information submitted to the Congress under this section shall be kept <p> confidential, upon the written request of the Chairman of the Board, in which <p> case it shall be made available only to the Chairpersons and Ranking Members of <p> the Committees described in subsection (a).</text> <p> </subsection><subsection commented="no" id="H789EC9441A5748E394CAF4C2F31B7FD8"><enum>(d)</enum><header>Applicability</header><text>The <p> provisions of this section shall be in force for all uses of the authority <p> provided under section 13 of the Federal Reserve Act occurring during the <p> period beginning on March 1, 2008 and ending on the after the date of enactment <p> of this Act, and reports described in subsection (a) shall be required <p> beginning not later than 30 days after that date of enactment, with respect to <p> any such exercise of authority.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="id60EA0B4F780B45BD8C8A65D976B47779"><enum>(e)</enum><header>Sharing of <p> information</header><text>Any reports required under this section shall also be <p> submitted to the Congressional Oversight Panel established under section <p> 125.</text> <p> </subsection></section><section id="HF56D8C147C8341FD93526C46BBE71D15"><enum>130.</enum><header>Technical <p> corrections</header> <p> <subsection id="H99E2A5F8B8794E2AB7AE7B99244549E6"><enum>(a)</enum><header>In <p> general</header><text display-inline="yes-display-inline">Section 128(b)(2) of <p> the Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1638">15 U.S.C. 1638(b)(2)</external-xref>), as amended by section 2502 of <p> the Mortgage Disclosure Improvement Act of 2008 (<external-xref legal-doc="public-law" parsable-cite="pl/110/289">Public Law 110–289</external-xref>), is <p> amended—</text> <p> <paragraph id="H8482CEF590C44F7FA8CD9E0036245067"><enum>(1)</enum><text>in subparagraph (A), by <p> striking <quote>In the case</quote> and inserting <quote>Except as provided in <p> subparagraph (G), in the case</quote>; and</text> <p> </paragraph><paragraph id="H4E87267BF3CB48C6A2C37C7F8556872E"><enum>(2)</enum><text>by amending subparagraph <p> (G) to read as follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H625551BF61F24F45BD3EF05943C600B" reported-display-style="italic" style="OLC"> <p> <subparagraph id="H9EAC38ADD2FB41E1BECE007E186EE088"><enum>(G)</enum><clause commented="no" display-inline="yes-display-inline" id="H1537DD38B4124FB18CAE29009C0099F6"><enum>(i)</enum><text>In the case of an <p> extension of credit relating to a plan described in section 101(53D) of title <p> 11, United States Code—</text> <p> <subclause changed="added" id="H7A6441B898BE4840AAFF6CE67FF46EF2" indent="up1" reported-display-style="italic"><enum>(I)</enum><text>the <p> requirements of subparagraphs (A) through (E) shall not apply; and</text> <p> </subclause><subclause changed="added" id="H97310EEE5C4542FD967DE55360508515" indent="up1" reported-display-style="italic"><enum>(II)</enum><text>a good <p> faith estimate of the disclosures required under subsection (a) shall be made <p> in accordance with regulations of the Board under section 121(c) before such <p> credit is extended, or shall be delivered or placed in the mail not later than <p> 3 business days after the date on which the creditor receives the written <p> application of the consumer for such credit, whichever is earlier.</text> <p> </subclause></clause><clause changed="added" id="H3D2038F36DEE480DB3E459BE4EAEBF49" indent="up1" reported-display-style="italic"><enum>(ii)</enum><text>If <p> a disclosure statement furnished within 3 business days of the written <p> application (as provided under clause (i)(II)) contains an annual percentage <p> rate which is subsequently rendered inaccurate, within the meaning of section <p> 107(c), the creditor shall furnish another disclosure statement at the time of <p> settlement or consummation of the <p> transaction.</text> <p> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H19A90052CE254B16B6C8FFD321DDA215"><enum>(b)</enum><header display-inline="yes-display-inline">Effective <p> date</header><text display-inline="yes-display-inline">The amendments made by <p> subsection (a) shall take effect as if included in the amendments made by <p> section 2502 of the Mortgage Disclosure Improvement Act of 2008 (Public Law <p> 110–289).</text> <p> </subsection></section><section display-inline="no-display-inline" id="HFEF834B724B049E0B0D908A7316CD830" section-type="subsequent-section"><enum>131.</enum><header>Exchange <p> Stabilization Fund reimbursement</header> <p> <subsection id="H4298BED61F164366BC1D98022B0082D7"><enum>(a)</enum><header>Reimbursement</header><text display-inline="yes-display-inline">The Secretary shall reimburse the Exchange <p> Stabilization Fund established under <external-xref legal-doc="usc" parsable-cite="usc/31/5302">section 5302</external-xref> of title 31, United States <p> Code, for any funds that are used for the Treasury Money Market Funds Guaranty <p> Program for the United States money market mutual fund industry, from funds <p> under this Act.</text> <p> </subsection><subsection id="H7BA53AE3E7D142FB98C3C9269FCE72A4"><enum>(b)</enum><header>Limits on use of <p> Exchange Stabilization Fund</header><text display-inline="yes-display-inline">The Secretary is prohibited from using the <p> Exchange Stabilization Fund for the establishment of any future guaranty <p> programs for the United States money market mutual fund industry.</text> <p> </subsection></section><section id="id9FC060D8FC9B49A896C6E2DE66528DE2"><enum>132.</enum><header>Authority to suspend <p> mark-to-market accounting</header> <p> <subsection id="id8CEC88261BC24F9E8453455DE21C9CF5"><enum>(a)</enum><header>Authority</header><text>The <p> Securities and Exchange Commission shall have the authority under the <p> securities laws (as such term is defined in section 3(a)(47) of the Securities <p> Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78c">15 U.S.C. 78c(a)(47)</external-xref>) to suspend, by rule, regulation, or <p> order, the application of Statement Number 157 of the Financial Accounting <p> Standards Board for any issuer (as such term is defined in section 3(a)(8) of <p> such Act) or with respect to any class or category of transaction if the <p> Commission determines that is necessary or appropriate in the public interest <p> and is consistent with the protection of investors.</text> <p> </subsection><subsection id="id57758DE31B064AB580DBE6CB7312EC8E"><enum>(b)</enum><header>Savings <p> provision</header><text>Nothing in subsection (a) shall be construed to <p> restrict or limit any authority of the Securities and Exchange Commission under <p> securities laws as in effect on the date of enactment of this Act.</text> <p> </subsection></section><section id="id5FCE36A8E3DD4CC9BBC329BC703E7B35"><enum>133.</enum><header>Study on <p> mark-to-market accounting</header> <p> <subsection id="id1658F8FCFDAA4925B5E36583544DD069"><enum>(a)</enum><header>Study</header><text>The <p> Securities and Exchange Commission, in consultation with the Board and the <p> Secretary, shall conduct a study on mark-to-market accounting standards as <p> provided in Statement Number 157 of the Financial Accounting Standards Board, <p> as such standards are applicable to financial institutions, including <p> depository institutions. Such a study shall consider at a minimum—</text> <p> <paragraph id="idD907FE74E0B84DF29A6A80C8BEAE77DD"><enum>(1)</enum><text>the effects of such <p> accounting standards on a financial institution's balance sheet;</text> <p> </paragraph><paragraph id="idB78292C784AF41FC895BBA172F38F28A"><enum>(2)</enum><text>the impacts of such <p> accounting on bank failures in 2008;</text> <p> </paragraph><paragraph id="id4460BCAAF74847D19B582D5208C8ADBF"><enum>(3)</enum><text>the impact of such <p> standards on the quality of financial information available to <p> investors;</text> <p> </paragraph><paragraph id="idA30E6AEF3D79449D9EAE25AC5C2BAF3E"><enum>(4)</enum><text>the process used by the <p> Financial Accounting Standards Board in developing accounting standards;</text> <p> </paragraph><paragraph id="idD935D6CF034A4A0A8B6191E45FFEDF1C"><enum>(5)</enum><text>the advisability and <p> feasibility of modifications to such standards; and</text> <p> </paragraph><paragraph id="id43D19464B65F4B37876994BDEB770609"><enum>(6)</enum><text>alternative accounting <p> standards to those provided in such Statement Number 157.</text> <p> </paragraph></subsection><subsection id="id9ADEF8A9BA2A44618B2AE91CF5C6B23B"><enum>(b)</enum><header>Report</header><text>The <p> Securities and Exchange Commission shall submit to Congress a report of such <p> study before the end of the 90-day period beginning on the date of the <p> enactment of this Act containing the findings and determinations of the <p> Commission, including such administrative and legislative recommendations as <p> the Commission determines appropriate.</text> <p> </subsection></section><section id="id3167994130384F0687861F80D25725EB"><enum>134.</enum><header>Recoupment</header><text display-inline="no-display-inline">Upon the expiration of the 5-year period <p> beginning upon the date of the enactment of this Act, the Director of the <p> Office of Management and Budget, in consultation with the Director of the <p> Congressional Budget Office, shall submit a report to the Congress on the net <p> amount within the Troubled Asset Relief Program under this Act. In any case <p> where there is a shortfall, the President shall submit a legislative proposal <p> that recoups from the financial industry an amount equal to the shortfall in <p> order to ensure that the Troubled Asset Relief Program does not add to the <p> deficit or national debt.</text> <p> </section><section id="idAAFDB400C3ED45FDA5ACE69ECCB607D7"><enum>135.</enum><header>Preservation of <p> authority</header><text display-inline="no-display-inline">With the exception <p> of section 131, nothing in this Act may be construed to limit the authority of <p> the Secretary or the Board under any other provision of law.</text> <p> </section><section id="IDc0e624b805f14381b0f6f53aef0948ca"><enum>136.</enum><header>Temporary increase in <p> deposit and share insurance coverage</header> <p> <subsection id="ID856af6ba280d4be89bf3efd93038343c"><enum>(a)</enum><header>Federal Deposit <p> Insurance Act; temporary increase in deposit insurance</header> <p> <paragraph id="idC6AC50E07366476E8378A1F1BA4D5C1E"><enum>(1)</enum><header>Increased <p> amount</header><text>Effective only during the period beginning on the date of <p> enactment of this Act and ending on December 31, 2009, section 11(a)(1)(E) of <p> the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1821">12 U.S.C. 1821(a)(1)(E)</external-xref>) shall apply with <p> <quote>$250,000</quote> substituted for <quote>$100,000</quote>.</text> <p> </paragraph><paragraph id="id96A03CA3571C4479A6D27CA0A8AA61E9"><enum>(2)</enum><header>Temporary increase not <p> to be considered for setting assessments</header><text>The temporary increase <p> in the standard maximum deposit insurance amount made under paragraph (1) shall <p> not be taken into account by the Board of Directors of the Corporation for <p> purposes of setting assessments under section 7(b)(2) of the Federal Deposit <p> Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1817">12 U.S.C. 1817(b)(2)</external-xref>).</text> <p> </paragraph><paragraph id="idA552CCB335364B83A35039B8017CE40A"><enum>(3)</enum><header>Borrowing limits <p> temporarily lifted</header><text display-inline="yes-display-inline">During the <p> period beginning on the date of enactment of this Act and ending on December <p> 31, 2009, the Board of Directors of the Corporation may request from the <p> Secretary, and the Secretary shall approve, a loan or loans in an amount or <p> amounts necessary to carry out this subsection, without regard to the <p> limitations on such borrowing under section 14(a) and 15(c) of the Federal <p> Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1824">12 U.S.C. 1824(a)</external-xref>, 1825(c)).</text> <p> </paragraph></subsection><subsection id="id1322AB5C82574548A24052C14EF07A72"><enum>(b)</enum><header>Federal Credit Union <p> Act; temporary increase in share insurance</header> <p> <paragraph id="IDc908ed07dc924284a9f2cea215e9f509"><enum>(1)</enum><header>Increased <p> amount</header><text>Effective only during the period beginning on the date of <p> enactment of this Act and ending on December 31, 2009, section 207(k)(5) of the <p> Federal Credit Union Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1787">12 U.S.C. 1787(k)(5)</external-xref>) shall apply with <p> <quote>$250,000</quote> substituted for <quote>$100,000</quote>.</text> <p> </paragraph><paragraph id="IDc762cbe321da48ef9e8e5a13e7f1c0f5"><enum>(2)</enum><header>Temporary increase not <p> to be considered for setting insurance premium charges and insurance deposit <p> adjustments</header><text>The temporary increase in the standard maximum share <p> insurance amount made under paragraph (1) shall not be taken into account by <p> the National Credit Union Administration Board for purposes of setting <p> insurance premium charges and share insurance deposit adjustments under section <p> 202(c)(2) of the Federal Credit Union Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1782">12 U.S.C. 1782(c)(2)</external-xref>).</text> <p> </paragraph><paragraph id="id1E50BCA95F7941AB870C5D6C6073AAD8"><enum>(3)</enum><header>Borrowing limits <p> temporarily lifted</header><text display-inline="yes-display-inline">During the <p> period beginning on the date of enactment of this Act and ending on December <p> 31, 2009, the National Credit Union Administration Board may request from the <p> Secretary, and the Secretary shall approve, a loan or loans in an amount or <p> amounts necessary to carry out this subsection, without regard to the <p> limitations on such borrowing under section 203(d)(1) of the Federal Credit <p> Union Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1783">12 U.S.C. 1783(d)(1)</external-xref>).</text> <p> </paragraph></subsection><subsection id="id89203ACA1B1A409D9D65F4C013D43870"><enum>(c)</enum><header>Not for use in <p> inflation adjustments</header><text>The temporary increase in the standard <p> maximum deposit insurance amount made under this section shall not be used to <p> make any inflation adjustment under section 11(a)(1)(F) of the Federal Deposit <p> Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1821">12 U.S.C. 1821(a)(1)(F)</external-xref>) for purposes of that Act or the Federal <p> Credit Union Act.</text> <p> </subsection></section><enum>II</enum><header>Budget-related <p> provisions</header> <p> <section display-inline="no-display-inline" id="H45CCC86E9D6C4813926DAD44696CDDFF" section-type="subsequent-section"><enum>201.</enum><header>Information for <p> congressional support agencies</header><text display-inline="no-display-inline">Upon request, and to the extent otherwise <p> consistent with law, all information used by the Secretary in connection with <p> activities authorized under this Act (including the records to which the <p> Comptroller General is entitled under this Act) shall be made available to <p> congressional support agencies (in accordance with their obligations to support <p> the Congress as set out in their authorizing statutes) for the purposes of <p> assisting the committees of Congress with conducting oversight, monitoring, and <p> analysis of the activities authorized under this Act.</text> <p> </section><section display-inline="no-display-inline" id="HAB830C49FCB841F487D37B9EB8374FA9" section-type="subsequent-section"><enum>202.</enum><header>Reports by the <p> Office of Management and Budget and the Congressional Budget Office</header> <p> <subsection id="H5A2E13F7E43B46D0812ED39549BC6D85"><enum>(a)</enum><header>Reports by the Office <p> of Management and Budget</header><text>Within 60 days of the first exercise of <p> the authority granted in section 101(a), but in no case later than December 31, <p> 2008, and semiannually thereafter, the Office of Management and Budget shall <p> report to the President and the Congress—</text> <p> <paragraph id="HF32C01D192664CD482EB0023A3BA33A3"><enum>(1)</enum><text>the estimate, <p> notwithstanding section 502(5)(F) of the Federal Credit Reform Act of 1990 (2 <p> U.S.C. 661a(5)(F)), as of the first business day that is at least 30 days prior <p> to the issuance of the report, of the cost of the troubled assets, and <p> guarantees of the troubled assets, determined in accordance with section <p> 123;</text> <p> </paragraph><paragraph id="HB7E5881D50C740E0942B63D7A33200ED"><enum>(2)</enum><text>the information used to <p> derive the estimate, including assets purchased or guaranteed, prices paid, <p> revenues received, the impact on the deficit and debt, and a description of any <p> outstanding commitments to purchase troubled assets; and</text> <p> </paragraph><paragraph id="H0EE6C5924D6E4318AF1B1C0000C74613"><enum>(3)</enum><text>a detailed analysis of <p> how the estimate has changed from the previous report.</text> <p> </paragraph><continuation-text continuation-text-level="subsection">Beginning with the second report under <p> subsection (a), the Office of Management and Budget shall explain the <p> differences between the Congressional Budget Office estimates delivered in <p> accordance with subsection (b) and prior Office of Management and Budget <p> estimates.</continuation-text></subsection><subsection id="H42357FD8E50540E0A42D6993441B0978"><enum>(b)</enum><header>Reports by the <p> Congressional Budget Office</header><text>Within 45 days of receipt by the <p> Congress of each report from the Office of Management and Budget under <p> subsection (a), the Congressional Budget Office shall report to the Congress <p> the Congressional Budget Office’s assessment of the report submitted by the <p> Office of Management and Budget, including—</text> <p> <paragraph id="H7F4E3EFF07894A85001B9B85D300202C"><enum>(1)</enum><text>the cost of the troubled <p> assets and guarantees of the troubled assets,</text> <p> </paragraph><paragraph id="H9670E2E1ACAC4BEF8B8FC2E1707DB985"><enum>(2)</enum><text>the information and <p> valuation methods used to calculate such cost, and</text> <p> </paragraph><paragraph id="H17E2C3D5B85449959F28F54CC8F18FAC"><enum>(3)</enum><text>the impact on the deficit <p> and the debt.</text> <p> </paragraph></subsection><subsection id="HC1DDE9A46759478BA18CB4C6008461F6"><enum>(c)</enum><header>Financial <p> expertise</header><text>In carrying out the duties in this subsection or <p> performing analyses of activities under this Act, the Director of the <p> Congressional Budget Office may employ personnel and procure the services of <p> experts and consultants.</text> <p> </subsection><subsection id="HD4386DFB3C5645B3959FFE49B7000C9"><enum>(d)</enum><header>Authorization of <p> appropriations</header><text>There are authorized to be appropriated such sums <p> as may be necessary to produce reports required by this section.</text> <p> </subsection></section><section id="H9DC9906772D742498E9113ED3C82E7D3"><enum>203.</enum><header>Analysis in <p> President’s Budget</header> <p> <subsection id="HE14647BD8F7A44B8BBCCF7B1D3465764"><enum>(a)</enum><header>In <p> general</header><text><external-xref legal-doc="usc" parsable-cite="usc/31/1105">Section 1105(a)</external-xref> of title 31, United States Code, is <p> amended by adding at the end the following new paragraph:</text> <p> <quoted-block changed="added" id="HB635E415201F410CB5C3B97FF9A1CCB5" reported-display-style="italic" style="OLC"> <p> <paragraph id="H1CB21F9B65B74109918B637FC3CAD861"><enum>(35)</enum><text>as supplementary <p> materials, a separate analysis of the budgetary effects for all prior fiscal <p> years, the current fiscal year, the fiscal year for which the budget is <p> submitted, and ensuing fiscal years of the actions the Secretary of the <p> Treasury has taken or plans to take using any authority provided in the <p> <short-title>Emergency Economic Stabilization Act of <p> 2008</short-title>, including—</text> <p> <subparagraph id="HBF3E7F607E6E4A1A81C08EF8C3F47B5"><enum>(A)</enum><text display-inline="yes-display-inline">an estimate of the current value of all <p> assets purchased, sold, and guaranteed under the authority provided in the <p> <short-title>Emergency Economic Stabilization Act of <p> 2008</short-title> using methodology required by the Federal Credit Reform Act <p> of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/2/661">2 U.S.C. 661 et seq.</external-xref>) and section 123 of the <p> <short-title>Emergency Economic Stabilization Act of <p> 2008</short-title>;</text> <p> </subparagraph><subparagraph id="H9FD9C5D94EE64433B3B22E00AAB79EC5"><enum>(B)</enum><text display-inline="yes-display-inline">an estimate of the deficit, the debt held <p> by the public, and the gross Federal debt using methodology required by the <p> Federal Credit Reform Act of 1990 and section 123 of the <p> <short-title>Emergency Economic Stabilization Act of <p> 2008</short-title>;</text> <p> </subparagraph><subparagraph id="H6DBC1799887B4176B719654CF1EFB543"><enum>(C)</enum><text display-inline="yes-display-inline">an estimate of the current value of all <p> assets purchased, sold, and guaranteed under the authority provided in the <p> <short-title>Emergency Economic Stabilization Act of <p> 2008</short-title> calculated on a cash basis;</text> <p> </subparagraph><subparagraph commented="no" id="HB5A0C73EB01D43529C8250322533AB8B"><enum>(D)</enum><text display-inline="yes-display-inline">a revised estimate of the deficit, the debt <p> held by the public, and the gross Federal debt, substituting the cash-based <p> estimates in subparagraph (C) for the estimates calculated under subparagraph <p> (A) pursuant to the Federal Credit Reform Act of 1990 and section 123 of the <p> <short-title>Emergency Economic Stabilization Act of <p> 2008</short-title>; and</text> <p> </subparagraph><subparagraph id="H286A9F99D2DA4BFA80DEB2C19F2F009D"><enum>(E)</enum><text display-inline="yes-display-inline">the portion of the deficit which can be <p> attributed to any action taken by the Secretary using authority provided by the <p> <short-title>Emergency Economic Stabilization Act of <p> 2008</short-title> and the extent to which the change in the deficit since the <p> most recent estimate is due to a reestimate using the methodology required by <p> the Federal Credit Reform Act of 1990 and section 123 of the <p> <short-title>Emergency Economic Stabilization Act of <p> 2008</short-title>.</text> <p> </subparagraph></paragraph><after-quoted-block></after-quoted-block></quoted-block> <p> </subsection><subsection id="H468F92BAC78842E2BC6EDDB0C8CAF808"><enum>(b)</enum><header>Consultation</header><text display-inline="yes-display-inline">In implementing this section, the Director <p> of Office of Management and Budget shall consult periodically, but at least <p> annually, with the Committee on the Budget of the House of Representatives, the <p> Committee on the Budget of the Senate, and the Director of the Congressional <p> Budget Office.</text> <p> </subsection><subsection id="HD9F27387986F43BEA34F68294BFEE300"><enum>(c)</enum><header>Effective <p> date</header><text>This section and the amendment made by this section shall <p> apply beginning with respect to the fiscal year 2010 budget submission of the <p> President.</text> <p> </subsection></section><section id="idD635D4DA17744D5F85A4C16076F62F06"><enum>204.</enum><header>Emergency <p> treatment</header><text display-inline="no-display-inline">All provisions of <p> this Act are designated as an emergency requirement and necessary to meet <p> emergency needs pursuant to section 204(a) of S. Con. Res 21 (110th Congress), <p> the concurrent resolution on the budget for fiscal year 2008 and rescissions of <p> any amounts provided in this Act shall not be counted for purposes of budget <p> enforcement.</text> <p> </section><enum>III</enum><header>Tax Provisions</header> <p> <section display-inline="no-display-inline" id="HFA7AB676D3334FA400E02B84F52CFA04" section-type="subsequent-section"><enum>301.</enum><header>Gain or loss from <p> sale or exchange of certain preferred stock</header> <p> <subsection id="H459C53A798EB4C17854B6286BF3EBD21"><enum>(a)</enum><header>In <p> general</header><text>For purposes of the Internal Revenue Code of 1986, gain <p> or loss from the sale or exchange of any applicable preferred stock by any <p> applicable financial institution shall be treated as ordinary income or <p> loss.</text> <p> </subsection><subsection id="H628D599973EB4BC59BAD4E649308F53F"><enum>(b)</enum><header>Applicable preferred <p> stock</header><text>For purposes of this section, the term <term>applicable <p> preferred stock</term> means any stock—</text> <p> <paragraph id="H1E0B64A4F499469D915B77AC4452F544"><enum>(1)</enum><text>which is preferred stock <p> in—</text> <p> <subparagraph id="H7164E81748374227834CC67B1D630377"><enum>(A)</enum><text>the Federal National <p> Mortgage Association, established pursuant to the Federal National Mortgage <p> Association Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1716">12 U.S.C. 1716 et seq.</external-xref>), or</text> <p> </subparagraph><subparagraph id="H520B96B965394F92AB2482B9A96EA64"><enum>(B)</enum><text>the Federal Home Loan <p> Mortgage Corporation, established pursuant to the Federal Home Loan Mortgage <p> Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1451">12 U.S.C. 1451 et seq.</external-xref>), and</text> <p> </subparagraph></paragraph><paragraph id="HB05C6ADD891D40ADA6E4D3FA99B3937D"><enum>(2)</enum><text>which—</text> <p> <subparagraph id="HD93C805AD0D742419B43215F748B7FF2"><enum>(A)</enum><text>was held by the <p> applicable financial institution on September 6, 2008, or</text> <p> </subparagraph><subparagraph id="HB123490A4E9949C8965F37145923956F"><enum>(B)</enum><text>was sold or exchanged by <p> the applicable financial institution on or after January 1, 2008, and before <p> September 7, 2008.</text> <p> </subparagraph></paragraph></subsection><subsection id="H4D6886314D18436FACCBE0C257E9D083"><enum>(c)</enum><header>Applicable financial <p> institution</header><text>For purposes of this section:</text> <p> <paragraph id="H98FD484749D14E2B8E76F6B87B690D8"><enum>(1)</enum><header>In <p> general</header><text>Except as provided in paragraph (2), the term <p> <term>applicable financial institution</term> means—</text> <p> <subparagraph id="H0AB2BDA2237B4419B275D3CB5EFFFB5"><enum>(A)</enum><text>a financial institution <p> referred to in <external-xref legal-doc="usc" parsable-cite="usc/26/582">section 582(c)(2)</external-xref> of the Internal Revenue Code of 1986, <p> or</text> <p> </subparagraph><subparagraph id="H041FCDFF28214B3BB9EA816D1F8F841"><enum>(B)</enum><text>a depository institution <p> holding company (as defined in section 3(w)(1) of the Federal Deposit Insurance <p> Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1813">12 U.S.C. 1813(w)(1)</external-xref>)).</text> <p> </subparagraph></paragraph><paragraph id="H6527CA63B2224D53B253D97E1B675248"><enum>(2)</enum><header>Special rules for <p> certain sales</header><text>In the case of—</text> <p> <subparagraph id="H40A6802685B84D598692AC95009327B7"><enum>(A)</enum><text>a sale or exchange <p> described in subsection (b)(2)(B), an entity shall be treated as an applicable <p> financial institution only if it was an entity described in subparagraph (A) or <p> (B) of paragraph (1) at the time of the sale or exchange, and</text> <p> </subparagraph><subparagraph id="H200E85EBD0E543B5A578540661DD02D"><enum>(B)</enum><text>a sale or exchange after <p> September 6, 2008, of preferred stock described in subsection (b)(2)(A), an <p> entity shall be treated as an applicable financial institution only if it was <p> an entity described in subparagraph (A) or (B) of paragraph (1) at all times <p> during the period beginning on September 6, 2008, and ending on the date of the <p> sale or exchange of the preferred stock.</text> <p> </subparagraph></paragraph></subsection><subsection id="H5B2CD6972D3B40B8BCE3D7882001BAF0"><enum>(d)</enum><header>Special rule for <p> certain property not held on September 6, 2008</header><text>The Secretary of <p> the Treasury or the Secretary's delegate may extend the application of this <p> section to all or a portion of the gain or loss from a sale or exchange in any <p> case where—</text> <p> <paragraph id="HFC3D042DAE6A4F51A01ED15B999B2986"><enum>(1)</enum><text>an applicable financial <p> institution sells or exchanges applicable preferred stock after September 6, <p> 2008, which the applicable financial institution did not hold on such date, but <p> the basis of which in the hands of the applicable financial institution at the <p> time of the sale or exchange is the same as the basis in the hands of the <p> person which held such stock on such date, or</text> <p> </paragraph><paragraph id="HB85B9DC1B9C445FABB129D8DEB7F0029"><enum>(2)</enum><text>the applicable financial <p> institution is a partner in a partnership which—</text> <p> <subparagraph id="H28C7A8CE42394E7E87F6ADC0F442FC54"><enum>(A)</enum><text>held such stock on <p> September 6, 2008, and later sold or exchanged such stock, or</text> <p> </subparagraph><subparagraph id="H36EEB78E1F5F41C4BCADCB5DF8E63D98"><enum>(B)</enum><text>sold or exchanged such <p> stock during the period described in subsection (b)(2)(B).</text> <p> </subparagraph></paragraph></subsection><subsection id="HB5B8406EC01D408E8C2DD400FC8E9B66"><enum>(e)</enum><header>Regulatory <p> authority</header><text>The Secretary of the Treasury or the Secretary's <p> delegate may prescribe such guidance, rules, or regulations as are necessary to <p> carry out the purposes of this section.</text> <p> </subsection><subsection id="H09F362AB2D7942A59D80CFC05821E911"><enum>(f)</enum><header>Effective <p> date</header><text>This section shall apply to sales or exchanges occurring <p> after December 31, 2007, in taxable years ending after such date.</text> <p> </subsection></section><section commented="no" display-inline="no-display-inline" id="HCD8B5B3FE1014900B76E4CF500F6ABC0"><enum>302.</enum><header>Special rules for tax <p> treatment of executive compensation of employers participating in the troubled <p> assets relief program</header> <p> <subsection commented="no" id="H9139E27AA12340C69207E27984B68D48"><enum>(a)</enum><header>Denial of <p> deduction</header><text>Subsection (m) of section 162 of the Internal Revenue <p> Code of 1986 is amended by adding at the end the following new <p> paragraph:</text> <p> <quoted-block act-name="" changed="added" id="H45C9252001A14091A654EDB8A5DB90A3" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" id="H5B4CA23634CF426ABFE2DFD6C4FDE351"><enum>(5)</enum><header>Special rule for <p> application to employers participating in the Troubled Assets Relief <p> Program</header> <p> <subparagraph commented="no" id="HF05AA1B4E05D4BAAA777D3D00AE05C3"><enum>(A)</enum><header>In <p> general</header><text>In the case of an applicable employer, no deduction shall <p> be allowed under this chapter—</text> <p> <clause commented="no" id="HC8A169136A7C4CFC927DF92EAEACC5"><enum>(i)</enum><text>in the case of executive <p> remuneration for any applicable taxable year which is attributable to services <p> performed by a covered executive during such applicable taxable year, to the <p> extent that the amount of such remuneration exceeds $500,000, or</text> <p> </clause><clause commented="no" id="H62D7B10AF4BF4B88A7E981D04C183900"><enum>(ii)</enum><text>in the case of deferred <p> deduction executive remuneration for any taxable year for services performed <p> during any applicable taxable year by a covered executive, to the extent that <p> the amount of such remuneration exceeds $500,000 reduced (but not below zero) <p> by the sum of—</text> <p> <subclause commented="no" id="H9BC0248138CF47108157B355EC95FA8C"><enum>(I)</enum><text>the executive <p> remuneration for such applicable taxable year, plus</text> <p> </subclause><subclause commented="no" id="HF7173C38B560415C881EFED7AA2E5D3D"><enum>(II)</enum><text>the portion of the <p> deferred deduction executive remuneration for such services which was taken <p> into account under this clause in a preceding taxable year.</text> <p> </subclause></clause></subparagraph><subparagraph commented="no" id="H7E3660F3361E4984871EEF80A9C4EA15"><enum>(B)</enum><header>Applicable <p> employer</header><text>For purposes of this paragraph—</text> <p> <clause commented="no" id="HA45768D483C8466DB85C5500F0C9ADF"><enum>(i)</enum><header>In <p> general</header><text>Except as provided in clause (ii), the term <p> <term>applicable employer</term> means any employer from whom 1 or more <p> troubled assets are acquired under a program established by the Secretary under <p> section 101(a) of the <short-title>Emergency Economic <p> Stabilization Act of 2008</short-title> if the aggregate amount of the assets <p> so acquired for all taxable years exceeds $300,000,000.</text> <p> </clause><clause commented="no" id="id9D523A30C36A4484814B0E4DC8D17672"><enum>(ii)</enum><header>Disregard of certain <p> assets sold through direct purchase</header><text>If the only sales of troubled <p> assets by an employer under the program described in clause (i) are through 1 <p> or more direct purchases (within the meaning of section 113(c) of the <p> <short-title>Emergency Economic Stabilization Act of <p> 2008</short-title>), such assets shall not be taken into account under clause <p> (i) in determining whether the employer is an applicable employer for purposes <p> of this paragraph.</text> <p> </clause><clause commented="no" id="HD7DC85A0CA624BB8ACF8A4E1FBC4446"><enum>(iii)</enum><header>Aggregation <p> rules</header><text>Two or more persons who are treated as a single employer <p> under subsection (b) or (c) of section 414 shall be treated as a single <p> employer, except that in applying section 1563(a) for purposes of either such <p> subsection, paragraphs (2) and (3) thereof shall be disregarded.</text> <p> </clause></subparagraph><subparagraph commented="no" id="H8ABBA19659D9450A93E6B85898000064"><enum>(C)</enum><header>Applicable taxable <p> year</header><text>For purposes of this paragraph, the term <term>applicable <p> taxable year</term> means, with respect to any employer—</text> <p> <clause commented="no" id="idB561E325420F418D8EBE22BFE59F204C"><enum>(i)</enum><text>the first taxable year of <p> the employer—</text> <p> <subclause commented="no" id="id5C6C223F9F3E4B84A4644FD8E7F64C87"><enum>(I)</enum><text>which includes any <p> portion of the period during which the authorities under section 101(a) of the <p> <short-title>Emergency Economic Stabilization Act of <p> 2008</short-title> are in effect (determined under section 120 thereof), <p> and</text> <p> </subclause><subclause commented="no" id="idDE1F659E90DD4CBD85D6D4A1CF8CBBA5"><enum>(II)</enum><text>in which the aggregate <p> amount of troubled assets acquired from the employer during the taxable year <p> pursuant to such authorities (other than assets to which subparagraph (B)(ii) <p> applies), when added to the aggregate amount so acquired for all preceding <p> taxable years, exceeds $300,000,000, and</text> <p> </subclause></clause><clause commented="no" id="idB5C0C1DBEB5F409BB350EB5A2E24913B"><enum>(ii)</enum><text>any subsequent taxable <p> year which includes any portion of such period.</text> <p> </clause></subparagraph><subparagraph commented="no" id="HAEFCBFF8CB4C4AF789913258D7CD4D7F"><enum>(D)</enum><header>Covered <p> executive</header><text>For purposes of this paragraph—</text> <p> <clause commented="no" id="HA6852C01482A40BDB3D198AA52560750"><enum>(i)</enum><header>In <p> general</header><text>The term <term>covered executive</term> means, with <p> respect to any applicable taxable year, any employee—</text> <p> <subclause commented="no" id="H9C02435348C5489C93F2A2891F4E773D"><enum>(I)</enum><text>who, at any time during <p> the portion of the taxable year during which the authorities under section <p> 101(a) of the <short-title>Emergency Economic <p> Stabilization Act of 2008</short-title> are in effect (determined under section <p> 120 thereof), is the chief executive officer of the applicable employer or the <p> chief financial officer of the applicable employer, or an individual acting in <p> either such capacity, or</text> <p> </subclause><subclause commented="no" id="H4F1C81D8687E4146A98EFEEBAE48FB09"><enum>(II)</enum><text>who is described in <p> clause (ii).</text> <p> </subclause></clause><clause commented="no" id="H9A8A647DC0E744C4A2FE48A0026CAE92"><enum>(ii)</enum><header>Highest compensated <p> employees</header><text>An employee is described in this clause if the employee <p> is 1 of the 3 highest compensated officers of the applicable employer for the <p> taxable year (other than an individual described in clause (i)(I)), <p> determined—</text> <p> <subclause commented="no" id="HBFCAA871A17C4329A17F7212D90970C9"><enum>(I)</enum><text>on the basis of the <p> shareholder disclosure rules for compensation under the Securities Exchange Act <p> of 1934 (without regard to whether those rules apply to the employer), <p> and</text> <p> </subclause><subclause commented="no" id="H5217C3A4D9004B1C978DDBE9CAE4EC05"><enum>(II)</enum><text>by only taking into <p> account employees employed during the portion of the taxable year described in <p> clause (i)(I).</text> <p> </subclause></clause><clause commented="no" id="H98AB1FC2A6A345DC9BFC9CCA48A6551F"><enum>(iii)</enum><header>Employee remains <p> covered executive</header><text>If an employee is a covered executive with <p> respect to an applicable employer for any applicable taxable year, such <p> employee shall be treated as a covered executive with respect to such employer <p> for all subsequent applicable taxable years and for all subsequent taxable <p> years in which deferred deduction executive remuneration with respect to <p> services performed in all such applicable taxable years would (but for this <p> paragraph) be deductible.</text> <p> </clause></subparagraph><subparagraph commented="no" id="H1F1E6F9C4B52488490978E47EE1889A9"><enum>(E)</enum><header>Executive <p> remuneration</header><text>For purposes of this paragraph, the term <p> <term>executive remuneration</term> means the applicable employee remuneration <p> of the covered executive, as determined under paragraph (4) without regard to <p> subparagraphs (B), (C), and (D) thereof. Such term shall not include any <p> deferred deduction executive remuneration with respect to services performed in <p> a prior applicable taxable year.</text> <p> </subparagraph><subparagraph commented="no" id="H077F7955A91340A700CA1DED474B2107"><enum>(F)</enum><header>Deferred deduction <p> executive remuneration</header><text>For purposes of this paragraph, the term <p> <term>deferred deduction executive remuneration</term> means remuneration which <p> would be executive remuneration for services performed in an applicable taxable <p> year but for the fact that the deduction under this chapter (determined without <p> regard to this paragraph) for such remuneration is allowable in a subsequent <p> taxable year.</text> <p> </subparagraph><subparagraph commented="no" id="H5261C0FA72194294BC7D8BD3372200EE"><enum>(G)</enum><header>Coordination</header><text>Rules <p> similar to the rules of subparagraphs (F) and (G) of paragraph (4) shall apply <p> for purposes of this paragraph.</text> <p> </subparagraph><subparagraph commented="no" id="id0411ADE2D5904E578CF370F84EA12D3E"><enum>(H)</enum><header>Regulatory <p> authority</header><text>The Secretary may prescribe such guidance, rules, or <p> regulations as are necessary to carry out the purposes of this paragraph and <p> the <short-title>Emergency Economic Stabilization Act of <p> 2008</short-title>, including the extent to which this paragraph applies in the <p> case of any acquisition, merger, or reorganization of an applicable <p> employer.</text> <p> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" id="H65CA48F91ECD4ECC84FA8779DD4D3EC3"><enum>(b)</enum><header>Golden parachute <p> rule</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/280G">Section 280G</external-xref> of the Internal Revenue Code of 1986 is <p> amended—</text> <p> <paragraph commented="no" id="HD847839C80D3497F8661B3599FDEB375"><enum>(1)</enum><text>by redesignating <p> subsection (e) as subsection (f), and</text> <p> </paragraph><paragraph commented="no" id="H3BF8C1DAD90049C8BCAF786730F9C5C"><enum>(2)</enum><text>by inserting after <p> subsection (d) the following new subsection:</text> <p> <quoted-block act-name="" changed="added" id="HE6EA9DEC18314AB7BC7D8BD97B95CC22" reported-display-style="italic" style="OLC"> <p> <subsection commented="no" id="H8ECDAD7B96774F87AFB6385D200582B"><enum>(e)</enum><header>Special rule for <p> application to employers participating in the Troubled Assets Relief <p> Program</header> <p> <paragraph commented="no" id="HABFBE08F2CC64807BFCACCF8363EB75B"><enum>(1)</enum><header>In <p> general</header><text>In the case of the severance from employment of a covered <p> executive of an applicable employer during the period during which the <p> authorities under section 101(a) of the <short-title>Emergency Economic Stabilization Act of 2008</short-title> <p> are in effect (determined under section 120 of such Act), this section shall be <p> applied to payments to such executive with the following modifications:</text> <p> <subparagraph commented="no" id="HD61594D33E094C91A3D1EB9700006DDE"><enum>(A)</enum><text>Any reference to a <p> disqualified individual (other than in subsection (c)) shall be treated as a <p> reference to a covered executive.</text> <p> </subparagraph><subparagraph commented="no" id="H58519AA8CFE043A9AE69F8C1000991E9"><enum>(B)</enum><text>Any reference to a change <p> described in subsection (b)(2)(A)(i) shall be treated as a reference to an <p> applicable severance from employment of a covered executive, and any reference <p> to a payment contingent on such a change shall be treated as a reference to any <p> payment made during an applicable taxable year of the employer on account of <p> such applicable severance from employment.</text> <p> </subparagraph><subparagraph commented="no" id="H3BF7870CDD9849DEA5FA03513DE90001"><enum>(C)</enum><text>Any reference to a <p> corporation shall be treated as a reference to an applicable employer.</text> <p> </subparagraph><subparagraph commented="no" id="H8892C916D7E4427B823DCCCAC63CED52"><enum>(D)</enum><text>The provisions of <p> subsections (b)(2)(C), (b)(4), (b)(5), and (d)(5) shall not apply.</text> <p> </subparagraph></paragraph><paragraph commented="no" id="HD11CCDEF761348D194A1B400805C1F1D"><enum>(2)</enum><header>Definitions and special <p> rules</header><text>For purposes of this subsection:</text> <p> <subparagraph commented="no" id="H3E4E879333AB4DE08500B2328BD47B9B"><enum>(A)</enum><header>Definitions</header><text>Any <p> term used in this subsection which is also used in section 162(m)(5) shall have <p> the meaning given such term by such section.</text> <p> </subparagraph><subparagraph commented="no" id="idF2A615881D9E42F78D8493F427FC3AB2"><enum>(B)</enum><header>Applicable severance <p> from employment</header><text>The term <term>applicable severance from <p> employment</term> means any severance from employment of a covered <p> executive—</text> <p> <clause commented="no" id="idC28C03E727AA4B789A5990D710A7C237"><enum>(i)</enum><text>by reason of an <p> involuntary termination of the executive by the employer, or</text> <p> </clause><clause commented="no" id="id51E9232732784F1BA2D9FFA9374C3CD4"><enum>(ii)</enum><text>in connection with any <p> bankruptcy, liquidation, or receivership of the employer.</text> <p> </clause></subparagraph><subparagraph commented="no" id="H964D5D896D6E4588A42E71A0027A7B"><enum>(C)</enum><header>Coordination and other <p> rules</header> <p> <clause commented="no" id="HC302133698054A8A9F6B392703BBED9"><enum>(i)</enum><header>In <p> general</header><text>If a payment which is treated as a parachute payment by <p> reason of this subsection is also a parachute payment determined without regard <p> to this subsection, this subsection shall not apply to such payment.</text> <p> </clause><clause commented="no" id="HA1EB4B867C6549C28E89D67E008FDCAC"><enum>(ii)</enum><header>Regulatory <p> authority</header><text>The Secretary may prescribe such guidance, rules, or <p> regulations as are necessary—</text> <p> <subclause commented="no" id="idC4FA45BBE94F48E2A47F90FA97AE3A90"><enum>(I)</enum><text>to carry out the purposes <p> of this subsection and the <short-title>Emergency Economic <p> Stabilization Act of 2008</short-title>, including the extent to which this <p> subsection applies in the case of any acquisition, merger, or reorganization of <p> an applicable employer,</text> <p> </subclause><subclause commented="no" id="id09719E91F15A4D4CAE017C4C2029BEEA"><enum>(II)</enum><text>to apply this section <p> and section 4999 in cases where one or more payments with respect to any <p> individual are treated as parachute payments by reason of this subsection, and <p> other payments with respect to such individual are treated as parachute <p> payments under this section without regard to this subsection, and</text> <p> </subclause><subclause commented="no" id="idDF4214F598E54DF6A01AD3980414DEB1"><enum>(III)</enum><text>to prevent the <p> avoidance of the application of this section through the mischaracterization of <p> a severance from employment as other than an applicable severance from <p> employment.</text> <p> </subclause></clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph></subsection><subsection commented="no" id="H343E24BCC0AB46FA8904A1C88B9D2500"><enum>(c)</enum><header>Effective <p> dates</header> <p> <paragraph commented="no" id="H1753FE3C92C248E5A9C1FD7010FA14A3"><enum>(1)</enum><header>In <p> general</header><text>The amendment made by subsection (a) shall apply to <p> taxable years ending on or after the date of the enactment of this Act.</text> <p> </paragraph><paragraph commented="no" id="H29FAB7F27CBC4A9C80BD3FDEA7CF6669"><enum>(2)</enum><header>Golden parachute <p> rule</header><text>The amendments made by subsection (b) shall apply to <p> payments with respect to severances occurring during the period during which <p> the authorities under section 101(a) of this Act are in effect (determined <p> under section 120 of this Act).</text> <p> </paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id30B9F46733FF4C228D0680CA6CCD9D0B" section-type="subsequent-section"><enum>303.</enum><header>Extension of <p> exclusion of income from discharge of qualified principal residence <p> indebtedness</header> <p> <subsection commented="no" display-inline="no-display-inline" id="idC017BCA5D6924E939C4E616393C96932"><enum>(a)</enum><header>Extension</header><text display-inline="yes-display-inline">Subparagraph (E) of section 108(a)(1) of <p> the Internal Revenue Code of 1986 is amended by striking <quote>January 1, <p> 2010</quote> and inserting <quote>January 1, 2013</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="idCFA7247290D44A1694D12F14C567BEC5"><enum>(b)</enum><header>Effective <p> date</header><text>The amendment made by this section shall apply to discharges <p> of indebtedness occurring on or after January 1, 2010.</text> <p> </subsection></section>B
Energy Improvement and

Extension Act of 2008

1.
Short title, etc

(a)

Short title
This division may be cited as the

Energy Improvement and Extension Act

of 2008.

(b)

Reference
Except as otherwise expressly provided,

whenever in this division 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 division is

as follows:

Sec. 1. Short title,

etc.

TITLE I—Energy production

incentives

Subtitle A—Renewable energy

incentives

Sec. 101. Renewable energy

credit.

Sec. 102. Production credit for

electricity produced from marine renewables.

Sec. 103. Energy

credit.

Sec. 104. Energy credit for

small wind property.

Sec. 105. Energy credit for

geothermal heat pump systems.

Sec. 106. Credit for

residential energy efficient property.

Sec. 107. New clean renewable

energy bonds.

Sec. 108. Credit for steel

industry fuel.

Sec. 109. Special rule to

implement FERC and State electric restructuring policy.

Subtitle B—Carbon mitigation

and coal provisions

Sec. 111. Expansion and

modification of advanced coal project investment credit.

Sec. 112. Expansion and

modification of coal gasification investment credit.

Sec. 113. Temporary increase in

coal excise tax; funding of Black Lung Disability Trust Fund.

Sec. 114. Special rules for

refund of the coal excise tax to certain coal producers and

exporters.

Sec. 115. Tax credit for carbon

dioxide sequestration.

Sec. 116. Certain income and

gains relating to industrial source carbon dioxide treated as qualifying income

for publicly traded partnerships.

Sec. 117. Carbon audit of the

tax code.

TITLE II—Transportation and

domestic fuel security provisions

Sec. 201. Inclusion of

cellulosic biofuel in bonus depreciation for biomass ethanol plant

property.

Sec. 202. Credits for biodiesel

and renewable diesel.

Sec. 203. Clarification that

credits for fuel are designed to provide an incentive for United States

production.

Sec. 204. Extension and

modification of alternative fuel credit.

Sec. 205. Credit for new

qualified plug-in electric drive motor vehicles.

Sec. 206. Exclusion from heavy

truck tax for idling reduction units and advanced insulation.

Sec. 207. Alternative fuel

vehicle refueling property credit.

Sec. 208. Certain income and

gains relating to alcohol fuels and mixtures, biodiesel fuels and mixtures, and

alternative fuels and mixtures treated as qualifying income for publicly traded

partnerships.

Sec. 209. Extension and

modification of election to expense certain refineries.

Sec. 210. Extension of

suspension of taxable income limit on percentage depletion for oil and natural

gas produced from marginal properties.

Sec. 211. Transportation fringe

benefit to bicycle commuters.

TITLE III—Energy conservation and

efficiency provisions

Sec. 301. Qualified energy

conservation bonds.

Sec. 302. Credit for

nonbusiness energy property.

Sec. 303. Energy efficient

commercial buildings deduction.

Sec. 304. New energy efficient

home credit.

Sec. 305. Modifications of

energy efficient appliance credit for appliances produced after

2007.

Sec. 306. Accelerated recovery period for

depreciation of smart meters and smart grid systems.

Sec. 307. Qualified green

building and sustainable design projects.

Sec. 308. Special depreciation

allowance for certain reuse and recycling property.

TITLE IV—Revenue

provisions

Sec. 401. Limitation of

deduction for income attributable to domestic production of oil, gas, or

primary products thereof.

Sec. 402. Elimination of the

different treatment of foreign oil and gas extraction income and foreign oil

related income for purposes of the foreign tax credit.

Sec. 403. Broker reporting of

customer’s basis in securities transactions.

Sec. 404. 0.2 percent FUTA

surtax.

Sec. 405. Increase and

extension of Oil Spill Liability Trust Fund tax.

<enum>I</enum><header display-inline="yes-display-inline">Energy production incentives</header> <p> <subtitle commented="no" id="H227B3F5A082B4A329FF074AD4C8C9FA7" level-type="subsequent"><enum>A</enum><header display-inline="yes-display-inline">Renewable energy incentives</header> <p> <section commented="no" display-inline="no-display-inline" id="H9FAC906BFDA94EACA54956642D001D00" section-type="subsequent-section"><enum>101.</enum><header display-inline="yes-display-inline">Renewable energy credit</header> <p> <subsection id="H60199794A5ED44AC90BFC8959D6B7C46"><enum>(a)</enum><header>Extension of <p> credit</header> <p> <paragraph id="H072CB6DEB58F4FD5B59C9CBAF4ACF586"><enum>(1)</enum><header>1-year extension for <p> wind and refined coal facilities</header><text>Paragraphs (1) and (8) of <p> section 45(d) are each amended by striking <quote>January 1, 2009</quote> and <p> inserting <quote>January 1, 2010</quote>.</text> <p> </paragraph><paragraph id="id277EE1196CD64967AE814085995A9C28"><enum>(2)</enum><header>2-year extension for <p> certain other facilities</header><text>Each of the following provisions of <p> section 45(d) is amended by striking <quote>January 1, 2009</quote> and <p> inserting <quote>January 1, 2011</quote>:</text> <p> <subparagraph id="idDE8F9AB6677F410DA071477AEB737C43"><enum>(A)</enum><text>Clauses (i) and (ii) of <p> paragraph (2)(A).</text> <p> </subparagraph><subparagraph id="id737AD1CA14554D5B877CABAF7E049BC7"><enum>(B)</enum><text>Clauses (i)(I) and (ii) <p> of paragraph (3)(A).</text> <p> </subparagraph><subparagraph id="id84BFBCA0A2D644FEAB1291D9F781FF90"><enum>(C)</enum><text>Paragraph (4).</text> <p> </subparagraph><subparagraph id="idBC2190371EB44430A9F2AAC9309FCE24"><enum>(D)</enum><text>Paragraph (5).</text> <p> </subparagraph><subparagraph id="id3342320390754B5D94153FEED6628052"><enum>(E)</enum><text>Paragraph (6).</text> <p> </subparagraph><subparagraph id="id7BD8757657544828859FFA89C9AD2C56"><enum>(F)</enum><text>Paragraph (7).</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id642E3E04B0CA4814B2AD9402AD8D70C0"><enum>(G)</enum><text>Subparagraphs (A) and (B) <p> of paragraph (9).</text> <p> </subparagraph></paragraph></subsection><subsection commented="no" id="idD1F334F7E11849A6B2ACDF0BD71A54B3"><enum>(b)</enum><header>Modification of refined <p> coal as a qualified energy resource</header> <p> <paragraph commented="no" id="id10FD0195267D42F0B9317DD4C2669387"><enum>(1)</enum><header>Elimination of <p> increased market value test</header><text>Section 45(c)(7)(A)(i) (defining <p> refined coal), as amended by section 108, is amended—</text> <p> <subparagraph commented="no" id="id221F572CC4FD437C8C93224FA4205A53"><enum>(A)</enum><text>by striking subclause <p> (IV),</text> <p> </subparagraph><subparagraph commented="no" id="id82A7F5641F874B11ADD202852C9A57E2"><enum>(B)</enum><text>by adding <p> <quote>and</quote> at the end of subclause (II), and</text> <p> </subparagraph><subparagraph commented="no" id="id050372CD4D8B4659A74BA23F93152A53"><enum>(C)</enum><text>by striking <quote>, <p> and</quote> at the end of subclause (III) and inserting a period.</text> <p> </subparagraph></paragraph><paragraph commented="no" id="id3493B4DDB1CC4B399A3EFB141916897F"><enum>(2)</enum><header>Increase in required <p> emission reduction</header><text>Section 45(c)(7)(B) (defining qualified <p> emission reduction) is amended by inserting <quote>at least 40 percent of the <p> emissions of</quote> after <quote>nitrogen oxide and</quote>.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H34794F7B56E5418B94CCB6B49FB7DBD"><enum>(c)</enum><header display-inline="yes-display-inline">Trash facility clarification</header><text display-inline="yes-display-inline">Paragraph (7) of section 45(d) is <p> amended—</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="H4E7E893B1D7B4FFAA41063D12245F9BD"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>facility which <p> burns</quote> and inserting <quote>facility (other than a facility described in <p> paragraph (6)) which uses</quote>, and</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8B7084AD30684BF4B7F5FD874987EB00"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="paragraph" style="OLC">combustion</header-in-text></quote>.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H70E162CC85BC4ED3B840904EBCD05257"><enum>(d)</enum><header display-inline="yes-display-inline">Expansion of biomass facilities</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="HDCF05C5740D94BB9B83E38ED8F8DD2E8"><enum>(1)</enum><header display-inline="yes-display-inline">Open-loop biomass facilities</header><text display-inline="yes-display-inline">Paragraph (3) of section 45(d) is amended <p> by redesignating subparagraph (B) as subparagraph (C) and by inserting after <p> subparagraph (A) the following new subparagraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H1D29EEDE4A57449400D0CCE3F850AF00" reported-display-style="italic" style="OLC"> <p> <subparagraph commented="no" display-inline="no-display-inline" id="H184DCA100941430DA9D57D8EEC5D0236"><enum>(B)</enum><header display-inline="yes-display-inline">Expansion of facility</header><text display-inline="yes-display-inline">Such term shall include a new unit placed <p> in service after the date of the enactment of this subparagraph in connection <p> with a facility described in subparagraph (A), but only to the extent of the <p> increased amount of electricity produced at the facility by reason of such new <p> unit.</text> <p> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFBB344FE28F044609C29644BCF00EF09"><enum>(2)</enum><header display-inline="yes-display-inline">Closed-loop biomass <p> facilities</header><text display-inline="yes-display-inline">Paragraph (2) of <p> section 45(d) is amended by redesignating subparagraph (B) as subparagraph (C) <p> and inserting after subparagraph (A) the following new subparagraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="HA814328FA1D5454281144BDEC008173" reported-display-style="italic" style="OLC"> <p> <subparagraph commented="no" display-inline="no-display-inline" id="HAA5F88E8962D4AA6AB83913E11F4513B"><enum>(B)</enum><header display-inline="yes-display-inline">Expansion of facility</header><text display-inline="yes-display-inline">Such term shall include a new unit placed <p> in service after the date of the enactment of this subparagraph in connection <p> with a facility described in subparagraph (A)(i), but only to the extent of the <p> increased amount of electricity produced at the facility by reason of such new <p> unit.</text> <p> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H873FD2DB1D094A0F9FA0D428001FDBA"><enum>(e)</enum><header display-inline="yes-display-inline">Modification of rules for hydropower <p> production</header><text display-inline="yes-display-inline">Subparagraph (C) <p> of section 45(c)(8) is amended to read as follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H913573B4D5F341D1BEEFD768481297C" reported-display-style="italic" style="OLC"> <p> <subparagraph commented="no" display-inline="no-display-inline" id="H56B9A2B460A54FB294D52BAEE76991C0"><enum>(C)</enum><header display-inline="yes-display-inline">Nonhydroelectric dam</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), a <p> facility is described in this subparagraph if—</text> <p> <clause commented="no" display-inline="no-display-inline" id="H1E69A39A40A3496D98CBA43463991EF1"><enum>(i)</enum><text display-inline="yes-display-inline">the hydroelectric project installed on the <p> nonhydroelectric dam is licensed by the Federal Energy Regulatory Commission <p> and meets all other applicable environmental, licensing, and regulatory <p> requirements,</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="H91022BFFE404442282F88537FF4CFA2E"><enum>(ii)</enum><text display-inline="yes-display-inline">the nonhydroelectric dam was placed in <p> service before the date of the enactment of this paragraph and operated for <p> flood control, navigation, or water supply purposes and did not produce <p> hydroelectric power on the date of the enactment of this paragraph, and</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="H7CA1DB9FE3E94BC39661118F6BA9C8A7"><enum>(iii)</enum><text display-inline="yes-display-inline">the hydroelectric project is operated so <p> that the water surface elevation at any given location and time that would have <p> occurred in the absence of the hydroelectric project is maintained, subject to <p> any license requirements imposed under applicable law that change the water <p> surface elevation for the purpose of improving environmental quality of the <p> affected waterway.</text> <p> </clause><continuation-text commented="no" continuation-text-level="subparagraph">The Secretary, in consultation with the <p> Federal Energy Regulatory Commission, shall certify if a hydroelectric project <p> licensed at a nonhydroelectric dam meets the criteria in clause (iii). Nothing <p> in this section shall affect the standards under which the Federal Energy <p> Regulatory Commission issues licenses for and regulates hydropower projects <p> under part I of the Federal Power <p> Act.</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H18231907CB4C4A0681EC200028F2EFB6"><enum>(f)</enum><header display-inline="yes-display-inline">Effective date</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="HB1E48F15F42C43E5B3267FF5625494FD"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as otherwise provided in this <p> subsection, the amendments made by this section shall apply to property <p> originally placed in service after December 31, 2008.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id335A93B775E74C94956498F6C677C4F5"><enum>(2)</enum><header>Refined <p> coal</header><text display-inline="yes-display-inline">The amendments made by <p> subsection (b) shall apply to coal produced and sold from facilities placed in <p> service after December 31, 2008.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1D4DD5FC3F684C779D39011EF7F2B11"><enum>(3)</enum><header display-inline="yes-display-inline">Trash facility clarification</header><text display-inline="yes-display-inline">The amendments made by subsection (c) shall <p> apply to electricity produced and sold after the date of the enactment of this <p> Act.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H97450CA9071640E0936D5B44903E8B7C"><enum>(4)</enum><header display-inline="yes-display-inline">Expansion of biomass <p> facilities</header><text display-inline="yes-display-inline">The amendments <p> made by subsection (d) shall apply to property placed in service after the date <p> of the enactment of this Act.</text> <p> </paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H0114C8F49D044243BCE46F84970087E2" section-type="subsequent-section"><enum>102.</enum><header display-inline="yes-display-inline">Production credit for electricity produced <p> from marine renewables</header> <p> <subsection commented="no" display-inline="no-display-inline" id="HABA000F32B1B45C0BC0745FB2476FD45"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (1) of section 45(c) is amended <p> by striking <quote>and</quote> at the end of subparagraph (G), by striking the <p> period at the end of subparagraph (H) and inserting <quote>, and</quote>, and <p> by adding at the end the following new subparagraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H620BA7E517CA45429485ADA3BF7B7C73" reported-display-style="italic" style="OLC"> <p> <subparagraph commented="no" display-inline="no-display-inline" id="H1D58B25270B24DF58B5D7E7D5785DF23"><enum>(I)</enum><text display-inline="yes-display-inline">marine and hydrokinetic renewable <p> energy.</text> <p> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H8A3BEC43333E4FE39203F13649DACAB"><enum>(b)</enum><header display-inline="yes-display-inline">Marine renewables</header><text display-inline="yes-display-inline">Subsection (c) of section 45 is amended by <p> adding at the end the following new paragraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="HA4A1CE9A49964D80A9002E869F5C4C00" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" display-inline="no-display-inline" id="H26AB21C9405F4E41A9827F68C5AC3300"><enum>(10)</enum><header display-inline="yes-display-inline">Marine and hydrokinetic renewable <p> energy</header> <p> <subparagraph commented="no" display-inline="no-display-inline" id="H14C78BF9E1B7413A9C6E49CE1421B74B"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>marine and hydrokinetic <p> renewable energy</term> means energy derived from—</text> <p> <clause commented="no" display-inline="no-display-inline" id="H42D58B2A5A3C4744A837779710706235"><enum>(i)</enum><text display-inline="yes-display-inline">waves, tides, and currents in oceans, <p> estuaries, and tidal areas,</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="HEC0AC1679A4A4962A92D5D689ED8A324"><enum>(ii)</enum><text display-inline="yes-display-inline">free flowing water in rivers, lakes, and <p> streams,</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="HAB470988A6CA4AD382C49DAF47140048"><enum>(iii)</enum><text display-inline="yes-display-inline">free flowing water in an irrigation system, <p> canal, or other man-made channel, including projects that utilize nonmechanical <p> structures to accelerate the flow of water for electric power production <p> purposes, or</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="H8A407083626346B7B79CBD951116D951"><enum>(iv)</enum><text display-inline="yes-display-inline">differentials in ocean temperature (ocean <p> thermal energy conversion).</text> <p> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5F9C0733EE994283953CABD2F220026"><enum>(B)</enum><header display-inline="yes-display-inline">Exceptions</header><text display-inline="yes-display-inline">Such term shall not include any energy <p> which is derived from any source which utilizes a dam, diversionary structure <p> (except as provided in subparagraph (A)(iii)), or impoundment for electric <p> power production <p> purposes.</text> <p> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="HDC080883D1D14822920069CC53F1F28"><enum>(c)</enum><header display-inline="yes-display-inline">Definition of facility</header><text display-inline="yes-display-inline">Subsection (d) of section 45 is amended by <p> adding at the end the following new paragraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H2C2EF36BC5184D2090EC881E3D24E5D8" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" display-inline="no-display-inline" id="HBE29E086212F4EFBB36D01C6DF48239"><enum>(11)</enum><header display-inline="yes-display-inline">Marine and hydrokinetic renewable energy <p> facilities</header><text display-inline="yes-display-inline">In the case of a <p> facility producing electricity from marine and hydrokinetic renewable energy, <p> the term <term>qualified facility</term> means any facility owned by the <p> taxpayer—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="HC1C9E7523E1B458BB6FC9F3270A173FD"><enum>(A)</enum><text display-inline="yes-display-inline">which has a nameplate capacity rating of at <p> least 150 kilowatts, and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCA736F1CABEE48FAA0FC3C25875DBA0"><enum>(B)</enum><text display-inline="yes-display-inline">which is originally placed in service on or <p> after the date of the enactment of this paragraph and before January 1, <p> 2012.</text> <p> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H39CCE961D5394E739B94BF3D6EB31FF6"><enum>(d)</enum><header display-inline="yes-display-inline">Credit rate</header><text display-inline="yes-display-inline">Subparagraph (A) of section 45(b)(4) is <p> amended by striking <quote>or (9)</quote> and inserting <quote>(9), or <p> (11)</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H5ED11E6395AB45798F709C43B69B01BB"><enum>(e)</enum><header display-inline="yes-display-inline">Coordination with small irrigation <p> power</header><text display-inline="yes-display-inline">Paragraph (5) of <p> section 45(d), as amended by section 101, is amended by striking <quote>January <p> 1, 2012</quote> and inserting <quote>the date of the enactment of paragraph <p> (11)</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H4D4194274BC84897B678311F49188FA8"><enum>(f)</enum><header display-inline="yes-display-inline">Effective <p> date</header><text display-inline="yes-display-inline">The amendments made by <p> this section shall apply to electricity produced and sold after the date of the <p> enactment of this Act, in taxable years ending after such date.</text> <p> </subsection></section><section commented="no" display-inline="no-display-inline" id="H9BC4ADD318884240A300FD5793521337" section-type="subsequent-section"><enum>103.</enum><header display-inline="yes-display-inline">Energy credit</header> <p> <subsection commented="no" display-inline="no-display-inline" id="HEC77645A5EE64335A3BCA47B84AA5E"><enum>(a)</enum><header display-inline="yes-display-inline">Extension of credit</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="H4B93E781DDFA47E8A4AE855FAA1946AD"><enum>(1)</enum><header display-inline="yes-display-inline">Solar energy property</header><text display-inline="yes-display-inline">Paragraphs (2)(A)(i)(II) and (3)(A)(ii) of <p> section 48(a) are each amended by striking <quote>January 1, 2009</quote> and <p> inserting <quote>January 1, 2017</quote>.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H634D66048FC946338FE146E6712F177D"><enum>(2)</enum><header display-inline="yes-display-inline">Fuel cell property</header><text display-inline="yes-display-inline">Subparagraph (E) of section 48(c)(1) is <p> amended by striking <quote>December 31, 2008</quote> and inserting <p> <quote>December 31, 2016</quote>.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF3D52BBD60B04D9B98E501287979B900"><enum>(3)</enum><header display-inline="yes-display-inline">Microturbine property</header><text display-inline="yes-display-inline">Subparagraph (E) of section 48(c)(2) is <p> amended by striking <quote>December 31, 2008</quote> and inserting <p> <quote>December 31, 2016</quote>.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB45D0813B48046D68D60F40900406526"><enum>(b)</enum><header display-inline="yes-display-inline">Allowance of energy credit against <p> alternative minimum tax</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="id53BF1C754499413DA53CC06EC2DA9D4B"><enum>(1)</enum><header>In <p> general</header><text display-inline="yes-display-inline">Subparagraph (B) of <p> section 38(c)(4), as amended by the Housing Assistance Tax Act of 2008, is <p> amended by redesignating clause (vi) as clause (vi) and (vii), respectively, <p> and by inserting after clause (iv) the following new clause:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H585167CE44ED4E86946978777609A6BA" reported-display-style="italic" style="OLC"> <p> <clause commented="no" display-inline="no-display-inline" id="H03D89A0F567B4E9CB870AB04F8BC67A6"><enum>(v)</enum><text display-inline="yes-display-inline">the credit determined under section 46 to <p> the extent that such credit is attributable to the energy credit determined <p> under section <p> 48,</text> <p> </clause><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id93065CF56F094E16822533D39CDFAE6F"><enum>(2)</enum><header>Technical <p> amendment</header><text>Clause (vi) of section 38(c)(4)(B), as redesignated by <p> paragraph (1), is amended by striking <quote>section 47 to the extent <p> attributable to</quote> and inserting <quote>section 46 to the extent that such <p> credit is attributable to the rehabilitation credit under section 47, but only <p> with respect to</quote>.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HF54C860AC7FC4CFE9DE644F4D2DDB8BB"><enum>(c)</enum><header display-inline="yes-display-inline">Energy credit for combined heat and power <p> system property</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="H4767C6A7C2804C13B74C9CBDFD751ED1"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 48(a)(3)(A) is amended by striking <p> <quote>or</quote> at the end of clause (iii), by inserting <quote>or</quote> at <p> the end of clause (iv), and by adding at the end the following new <p> clause:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="HCFFE7F3748714BD097DA3C0941FFDFB5" reported-display-style="italic" style="OLC"> <p> <clause commented="no" display-inline="no-display-inline" id="HBC7D3A49B3DB4F87838D51F7B300BFF4"><enum>(v)</enum><text display-inline="yes-display-inline">combined heat and power system <p> property,</text> <p> </clause><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H154CDAE852A84F61B105D6E969326D00"><enum>(2)</enum><header display-inline="yes-display-inline">Combined Heat and Power System <p> Property</header><text display-inline="yes-display-inline">Subsection (c) of <p> section 48 is amended—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id2E300A5099D34BFE89FEE6BE000DB731"><enum>(A)</enum><text>by striking <p> <quote><header-in-text level="subsection" style="OLC">Qualified fuel cell <p> property; qualified microturbine property</header-in-text></quote> in the <p> heading and inserting <quote><header-in-text level="subsection" style="OLC">Definitions</header-in-text></quote>, and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idDAA313EE8ADC4F3795288B59EA6E3E8B"><enum>(B)</enum><text display-inline="yes-display-inline">by adding at the end the following new <p> paragraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="HA44773243F6D459B8F9D188E1C7F5561" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" display-inline="no-display-inline" id="H27D105E9C19B4DB79BFEB5BFD5543392"><enum>(3)</enum><header display-inline="yes-display-inline">Combined Heat and Power System <p> Property</header> <p> <subparagraph commented="no" display-inline="no-display-inline" id="H78BBAD672BB44851BBCD337377E6DF05"><enum>(A)</enum><header display-inline="yes-display-inline">Combined heat and power system <p> property</header><text display-inline="yes-display-inline">The term <p> <term>combined heat and power system property</term> means property comprising <p> a system—</text> <p> <clause commented="no" display-inline="no-display-inline" id="H44ACB20F78024F32A760B22887F84147"><enum>(i)</enum><text display-inline="yes-display-inline">which uses the same energy source for the <p> simultaneous or sequential generation of electrical power, mechanical shaft <p> power, or both, in combination with the generation of steam or other forms of <p> useful thermal energy (including heating and cooling applications),</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="H7D5BDEE69E334BE5AEE6D7FCDB291B67"><enum>(ii)</enum><text display-inline="yes-display-inline">which produces—</text> <p> <subclause commented="no" display-inline="no-display-inline" id="H7C726E84194E4130A133CFDF52774C1"><enum>(I)</enum><text display-inline="yes-display-inline">at least 20 percent of its total useful <p> energy in the form of thermal energy which is not used to produce electrical or <p> mechanical power (or combination thereof), and</text> <p> </subclause><subclause commented="no" display-inline="no-display-inline" id="H507B84FEA91743BCB5E213FFAC009D46"><enum>(II)</enum><text display-inline="yes-display-inline">at least 20 percent of its total useful <p> energy in the form of electrical or mechanical power (or combination <p> thereof),</text> <p> </subclause></clause><clause commented="no" display-inline="no-display-inline" id="HA0997655823B40A59CE116ADAED2397F"><enum>(iii)</enum><text display-inline="yes-display-inline">the energy efficiency percentage of which <p> exceeds 60 percent, and</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="H47501F139B354873B19ECCC17681BCC7"><enum>(iv)</enum><text display-inline="yes-display-inline">which is placed in service before January <p> 1, 2017.</text> <p> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3B64F244DEB3424D8BDC4496DEEBD4CA"><enum>(B)</enum><header display-inline="yes-display-inline">Limitation</header> <p> <clause commented="no" display-inline="no-display-inline" id="HAC52D6A6EE9A4959AD9C6B9BE5F20610"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In the case of combined heat and power <p> system property with an electrical capacity in excess of the applicable <p> capacity placed in service during the taxable year, the credit under subsection <p> (a)(1) (determined without regard to this paragraph) for such year shall be <p> equal to the amount which bears the same ratio to such credit as the applicable <p> capacity bears to the capacity of such property.</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="HC5AC95D1BCAB4726885CCE5DEA560192"><enum>(ii)</enum><header display-inline="yes-display-inline">Applicable capacity</header><text display-inline="yes-display-inline">For purposes of clause (i), the term <p> <term>applicable capacity</term> means 15 megawatts or a mechanical energy <p> capacity of more than 20,000 horsepower or an equivalent combination of <p> electrical and mechanical energy capacities.</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="H8D94049E0FD449BFBEDE65D9B355E508"><enum>(iii)</enum><header display-inline="yes-display-inline">Maximum capacity</header><text display-inline="yes-display-inline">The term <term>combined heat and power <p> system property</term> shall not include any property comprising a system if <p> such system has a capacity in excess of 50 megawatts or a mechanical energy <p> capacity in excess of 67,000 horsepower or an equivalent combination of <p> electrical and mechanical energy capacities.</text> <p> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4A729B6A14814A9200CC06762FB48E72"><enum>(C)</enum><header display-inline="yes-display-inline">Special rules</header> <p> <clause commented="no" display-inline="no-display-inline" id="H001066A9D611439B915DD19B739073EB"><enum>(i)</enum><header display-inline="yes-display-inline">Energy efficiency percentage</header><text display-inline="yes-display-inline">For purposes of this paragraph, the energy <p> efficiency percentage of a system is the fraction—</text> <p> <subclause commented="no" display-inline="no-display-inline" id="HF0D18DF1AB7F45D685B1F9B4B2B4BE3"><enum>(I)</enum><text display-inline="yes-display-inline">the numerator of which is the total useful <p> electrical, thermal, and mechanical power produced by the system at normal <p> operating rates, and expected to be consumed in its normal application, <p> and</text> <p> </subclause><subclause commented="no" display-inline="no-display-inline" id="H34FFFF5C317448DDB3A11D7BF9179418"><enum>(II)</enum><text display-inline="yes-display-inline">the denominator of which is the lower <p> heating value of the fuel sources for the system.</text> <p> </subclause></clause><clause commented="no" display-inline="no-display-inline" id="H598A19FCE5BA4FF2BF37A908FB115D7"><enum>(ii)</enum><header display-inline="yes-display-inline">Determinations made on btu <p> basis</header><text display-inline="yes-display-inline">The energy efficiency <p> percentage and the percentages under subparagraph (A)(ii) shall be determined <p> on a Btu basis.</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="H30B320081B944BD6B292B8A800DD9238"><enum>(iii)</enum><header display-inline="yes-display-inline">Input and output property not <p> included</header><text display-inline="yes-display-inline">The term <p> <term>combined heat and power system property</term> does not include property <p> used to transport the energy source to the facility or to distribute energy <p> produced by the facility.</text> <p> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H990D1761EB2A4C5DA671618425095BE8"><enum>(D)</enum><header display-inline="yes-display-inline">Systems using biomass</header><text display-inline="yes-display-inline">If a system is designed to use biomass <p> (within the meaning of paragraphs (2) and (3) of section 45(c) without regard <p> to the last sentence of paragraph (3)(A)) for at least 90 percent of the energy <p> source—</text> <p> <clause commented="no" display-inline="no-display-inline" id="H4B33024AB00F4330AFAA2C081391B240"><enum>(i)</enum><text display-inline="yes-display-inline">subparagraph (A)(iii) shall not apply, <p> but</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="HF085757680ED48288595A4BFE05B5BE9"><enum>(ii)</enum><text display-inline="yes-display-inline">the amount of credit determined under <p> subsection (a) with respect to such system shall not exceed the amount which <p> bears the same ratio to such amount of credit (determined without regard to <p> this subparagraph) as the energy efficiency percentage of such system bears to <p> 60 <p> percent.</text> <p> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8B37ECB30DAE43F78FB5F0FA026CBC8B"><enum>(3)</enum><header>Conforming <p> amendment</header><text>Section 48(a)(1) is amended by striking <p> <quote>paragraphs (1)(B) and (2)(B)</quote> and inserting <quote>paragraphs <p> (1)(B), (2)(B), and (3)(B)</quote>.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H1C7CEFA059A24F16A6282E9B6CA700C8"><enum>(d)</enum><header display-inline="yes-display-inline">Increase of credit limitation for fuel cell <p> property</header><text display-inline="yes-display-inline">Subparagraph (B) of <p> section 48(c)(1) is amended by striking <quote>$500</quote> and inserting <p> <quote>$1,500</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H44EF655636604B35AC76037CA2FF5154"><enum>(e)</enum><header display-inline="yes-display-inline">Public utility property taken into <p> account</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="H340478ED5C504ABFB762AC226EEB08A7"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (3) of section 48(a) is amended <p> by striking the second sentence thereof.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9F9A7A9928CD471D98D7931001566BEF"><enum>(2)</enum><header display-inline="yes-display-inline">Conforming amendments</header> <p> <subparagraph commented="no" display-inline="no-display-inline" id="HCA5E5463BF2B4307A4E730959B6FEC32"><enum>(A)</enum><text display-inline="yes-display-inline">Paragraph (1) of section 48(c) is amended <p> by striking subparagraph (D) and redesignating subparagraph (E) as subparagraph <p> (D).</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4B5692FDE17B4EC083A376EC73D85E7C"><enum>(B)</enum><text display-inline="yes-display-inline">Paragraph (2) of section 48(c) is amended <p> by striking subparagraph (D) and redesignating subparagraph (E) as subparagraph <p> (D).</text> <p> </subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H9A685C8E85FF470ABC2E82FA4BEE95B"><enum>(f)</enum><header display-inline="yes-display-inline">Effective date</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="H9F63004F6F4B4D259DFE200E1669C45"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as otherwise provided in this <p> subsection, the amendments made by this section shall take effect on the date <p> of the enactment of this Act.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBA20D7B098E8471DB42EF21FDEC9AAEF"><enum>(2)</enum><header display-inline="yes-display-inline">Allowance against alternative minimum <p> tax</header><text display-inline="yes-display-inline">The amendments made by <p> subsection (b) shall apply to credits determined under section 46 of the <p> Internal Revenue Code of 1986 in taxable years beginning after the date of the <p> enactment of this Act and to carrybacks of such credits.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB6F77140FC3C430D9478C44988CFDEC4"><enum>(3)</enum><header display-inline="yes-display-inline">Combined heat and power and fuel cell <p> property</header><text display-inline="yes-display-inline">The amendments made <p> by subsections (c) and (d) shall apply to periods after the date of the <p> enactment of this Act, in taxable years ending after such date, under rules <p> similar to the rules of <external-xref legal-doc="usc" parsable-cite="usc/26/48">section 48(m)</external-xref> of the Internal Revenue Code of 1986 (as <p> in effect on the day before the date of the enactment of the Revenue <p> Reconciliation Act of 1990).</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HADB27085C1714D27B0EE675D85C5D1E8"><enum>(4)</enum><header display-inline="yes-display-inline"> Public utility property</header><text display-inline="yes-display-inline">The amendments made by subsection (e) shall <p> apply to periods after February 13, 2008, in taxable years ending after such <p> date, under rules similar to the rules of section 48(m) of the Internal Revenue <p> Code of 1986 (as in effect on the day before the date of the enactment of the <p> Revenue Reconciliation Act of 1990).</text> <p> </paragraph></subsection></section><section commented="no" id="idEFC710EF691B4C469F5ECFADA226D294"><enum>104.</enum><header>Energy credit for <p> small wind property</header> <p> <subsection commented="no" id="idC44694E536AE458F898D7B499A3FB8C4"><enum>(a)</enum><header>In <p> general</header><text>Section 48(a)(3)(A), as amended by section 103, is <p> amended by striking <quote>or</quote> at the end of clause (iv), by adding <p> <quote>or</quote> at the end of clause (v), and by inserting after clause (v) <p> the following new clause:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idE52E1EFACB414EC89DC92B45390C56FC" reported-display-style="italic" style="OLC"> <p> <clause commented="no" id="id9E68BC35102540FAB79D24194F9CBED0"><enum>(vi)</enum><text>qualified small wind <p> energy <p> property,</text> <p> </clause><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" id="idC7123C81BB8E4C6A87186BDEE91D0336"><enum>(b)</enum><header>30 percent <p> credit</header><text>Section 48(a)(2)(A)(i) is amended by striking <p> <quote>and</quote> at the end of subclause (II) and by inserting after <p> subclause (III) the following new subclause:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id2874F8BDFA7645DCA84651E8220C8123" reported-display-style="italic" style="OLC"> <p> <subclause commented="no" id="id13236264CDEE4ED2BA4BB2AF24C66F31"><enum>(IV)</enum><text>qualified small wind <p> energy property, <p> and</text> <p> </subclause><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" id="idA2A9402E6FF84AD28F0127C867D917C8"><enum>(c)</enum><header>Qualified small wind <p> energy property</header><text>Section 48(c), as amended by section 103, is <p> amended by adding at the end the following new paragraph:</text> <p> <quoted-block act-name="" changed="added" id="id7A647D39043345B997B0BA49B219BC69" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" id="idACD448F899A64D23941860F76C212047"><enum>(4)</enum><header>Qualified small wind <p> energy property</header> <p> <subparagraph commented="no" id="id6E49C72FD36F41E7A54CA1A9BD0AC626"><enum>(A)</enum><header>In <p> general</header><text>The term <term>qualified small wind energy <p> property</term> means property which uses a qualifying small wind turbine to <p> generate electricity.</text> <p> </subparagraph><subparagraph commented="no" id="idD00CBF83246C4EAA991BC4F813044505"><enum>(B)</enum><header>Limitation</header><text>In <p> the case of qualified small wind energy property placed in service during the <p> taxable year, the credit otherwise determined under subsection (a)(1) for such <p> year with respect to all such property of the taxpayer shall not exceed <p> $4,000.</text> <p> </subparagraph><subparagraph commented="no" id="idFCD731690B9C45AE9088034F039282C6"><enum>(C)</enum><header>Qualifying small wind <p> turbine</header><text>The term <term>qualifying small wind turbine</term> means <p> a wind turbine which has a nameplate capacity of not more than 100 <p> kilowatts.</text> <p> </subparagraph><subparagraph commented="no" id="id80564AA506C24F44818CFB1B25959F9D"><enum>(D)</enum><header>Termination</header><text>The <p> term <term>qualified small wind energy property</term> shall not include any <p> property for any period after December 31, <p> 2016.</text> <p> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="idCF016CD95327498188548B00AA2C04A8"><enum>(d)</enum><header>Conforming <p> amendment</header><text>Section 48(a)(1), as amended by section 103, is amended <p> by striking <quote>paragraphs (1)(B), (2)(B), and (3)(B)</quote> and inserting <p> <quote>paragraphs (1)(B), (2)(B), (3)(B), and (4)(B)</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="idADB41F94F0934221BDE96AED97AB00A3"><enum>(e)</enum><header>Effective <p> date</header><text>The amendments made by this section shall apply to periods <p> after the date of the enactment of this Act, in taxable years ending after such <p> date, under rules similar to the rules of section 48(m) of the Internal Revenue <p> Code of 1986 (as in effect on the day before the date of the enactment of the <p> Revenue Reconciliation Act of 1990).</text> <p> </subsection></section><section display-inline="no-display-inline" id="HE0B63540210248F7A6553F14B7E4C56" section-type="subsequent-section"><enum>105.</enum><header>Energy credit for <p> geothermal heat pump systems</header> <p> <subsection id="HFDFC73E5EBCA4DDBB8D64C00C32D0591"><enum>(a)</enum><header>In <p> general</header><text>Subparagraph (A) of <p> section 48(a)(3), <p> as amended by this Act, is amended by striking <p> <quote>or</quote> at the end of clause (v), by inserting <quote>or</quote> at <p> the end of clause (vi), and by adding at the end the following new <p> clause:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H157A746DEAD648F9BF2DC3688D7B67A4" reported-display-style="italic" style="OLC"> <p> <clause id="H45C7252E06DA4733BE38B045ECE2CFA0"><enum>(vii)</enum><text>equipment which uses <p> the ground or ground water as a thermal energy source to heat a structure or as <p> a thermal energy sink to cool a structure, but only with respect to periods <p> ending before January 1, <p> 2017,</text> <p> </clause><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H3C18C74A5F234E89917F0053E0426297"><enum>(b)</enum><header>Effective <p> date</header><text>The amendments made by this section shall apply to periods <p> after the date of the enactment of this Act, in taxable years ending after such <p> date, under rules similar to the rules of section 48(m) of the Internal Revenue <p> Code of 1986 (as in effect on the day before the date of the enactment of the <p> Revenue Reconciliation Act of 1990).</text> <p> </subsection></section><section commented="no" display-inline="no-display-inline" id="H5ED789E7E8984A7B98387E05F95EF1FB" section-type="subsequent-section"><enum>106.</enum><header display-inline="yes-display-inline">Credit for residential energy efficient <p> property</header> <p> <subsection commented="no" display-inline="no-display-inline" id="H0AE8EBEDC3BA472EBB419F76F6251599"><enum>(a)</enum><header display-inline="yes-display-inline">Extension</header><text display-inline="yes-display-inline">Section 25D(g) is amended by striking <p> <quote>December 31, 2008</quote> and inserting <quote>December 31, <p> 2016</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="HB3844B98040B4DF6BF8855F000F700A6"><enum>(b)</enum><header display-inline="yes-display-inline">Removal of limitation for solar electric <p> property</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="HAC9CDC73A45246538FECA973584E00FC"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 25D(b)(1), as amended by <p> subsections (c) and (d), is amended—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id0D4B3336100942AFA2E50EF5E1DB9F0C"><enum>(A)</enum><text display-inline="yes-display-inline">by striking subparagraph (A), and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6A65226FB6D44FE197EC0AA49F0E02DD"><enum>(B)</enum><text display-inline="yes-display-inline">by redesignating subparagraphs (B) through <p> (E) as subparagraphs (A) through and (D), respectively.</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H983C1D96F07E41B5A38188A0080082B5"><enum>(2)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">Section 25D(e)(4)(A), as amended by <p> subsections (c) and (d), is amended—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id7A576063255E4F94B5036251465E8F69"><enum>(A)</enum><text display-inline="yes-display-inline">by striking clause (i), and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id98607EC3CED24D86A48E747AE69812C2"><enum>(B)</enum><text display-inline="yes-display-inline">by redesignating clauses (ii) through (v) <p> as clauses (i) and (iv), respectively.</text> <p> </subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H11E916D254AA4139BB7E7C47EC1EE261"><enum>(c)</enum><header display-inline="yes-display-inline">Credit for residential wind <p> property</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="HAD4B1A14BB8D44CE9C43EC37377F6CA9"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 25D(a) is amended by striking <p> <quote>and</quote> at the end of paragraph (2), by striking the period at the <p> end of paragraph (3) and inserting <quote>, and</quote>, and by adding at the <p> end the following new paragraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H1C63D35F3DE14421002577EA4BE5FC59" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" display-inline="no-display-inline" id="HE47A7AA58C0343D59B6F633F86CE8C74"><enum>(4)</enum><text display-inline="yes-display-inline">30 percent of the qualified small wind <p> energy property expenditures made by the taxpayer during such <p> year.</text> <p> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE78EF330A0F9466699F5BD6F54B3DFD7"><enum>(2)</enum><header display-inline="yes-display-inline">Limitation</header><text display-inline="yes-display-inline">Section 25D(b)(1) is amended by striking <p> <quote>and</quote> at the end of subparagraph (B), by striking the period at <p> the end of subparagraph (C) and inserting <quote>, and</quote>, and by adding <p> at the end the following new subparagraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="HCD446BBFB5C84960B7C9CBDE5E083DA3" reported-display-style="italic" style="OLC"> <p> <subparagraph commented="no" display-inline="no-display-inline" id="HB5C81CF3ABE444D3A076573B00F8E890"><enum>(D)</enum><text display-inline="yes-display-inline">$500 with respect to each half kilowatt of <p> capacity (not to exceed $4,000) of wind turbines for which qualified small wind <p> energy property expenditures are <p> made.</text> <p> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB815A3F98DE94DD9970072705F705FDE"><enum>(3)</enum><header display-inline="yes-display-inline">Qualified small wind energy property <p> expenditures</header> <p> <subparagraph commented="no" display-inline="no-display-inline" id="HD24C6FA01FA34D1CA640F9741434ECB"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 25D(d) is amended by adding at the <p> end the following new paragraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H7886019951BF42469D2F49FEE6E4DFB8" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" display-inline="no-display-inline" id="H10ECE916613841E49E756326BA267F95"><enum>(4)</enum><header display-inline="yes-display-inline">Qualified small wind energy property <p> expenditure</header><text display-inline="yes-display-inline">The term <p> <term>qualified small wind energy property expenditure</term> means an <p> expenditure for property which uses a wind turbine to generate electricity for <p> use in connection with a dwelling unit located in the United States and used as <p> a residence by the <p> taxpayer.</text> <p> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8ADA5F095229490EA4447FCF6C1F0051"><enum>(B)</enum><header display-inline="yes-display-inline">No double benefit</header><text display-inline="yes-display-inline">Section 45(d)(1) is amended by adding at <p> the end the following new sentence: <quote>Such term shall not include any <p> facility with respect to which any qualified small wind energy property <p> expenditure (as defined in subsection (d)(4) of section 25D) is taken into <p> account in determining the credit under such section.</quote>.</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H620566E0C5DA43B290D73D5233C38C92"><enum>(4)</enum><header display-inline="yes-display-inline">Maximum expenditures in case of joint <p> occupancy</header><text display-inline="yes-display-inline">Section <p> 25D(e)(4)(A) is amended by striking <quote>and</quote> at the end of clause <p> (ii), by striking the period at the end of clause (iii) and inserting <quote>, <p> and</quote>, and by adding at the end the following new clause:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H5A0CF040496241CA000000DBF404502F" reported-display-style="italic" style="OLC"> <p> <clause commented="no" display-inline="no-display-inline" id="H706DF7D37CF048DFA9B6A1EDFABC21E"><enum>(iv)</enum><text display-inline="yes-display-inline">$1,667 in the case of each half kilowatt of <p> capacity (not to exceed $13,333) of wind turbines for which qualified small <p> wind energy property expenditures are <p> made.</text> <p> </clause><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H11ED1E8DEE464E20B615536094D8BE2B"><enum>(d)</enum><header display-inline="yes-display-inline">Credit for geothermal heat pump <p> systems</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="H75450415236441238F99DF0049AA0086"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 25D(a), as amended by subsection <p> (c), is amended by striking <quote>and</quote> at the end of paragraph (3), by <p> striking the period at the end of paragraph (4) and inserting <quote>, <p> and</quote>, and by adding at the end the following new paragraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="HDB01C5B6FDBA41C500904C656431B339" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" display-inline="no-display-inline" id="H955CCC033A9C4BE4B14B98F3B286257"><enum>(5)</enum><text display-inline="yes-display-inline">30 percent of the qualified geothermal heat <p> pump property expenditures made by the taxpayer during such <p> year.</text> <p> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HED3CEFFA513549F2B245F1B66F5B6344"><enum>(2)</enum><header display-inline="yes-display-inline">Limitation</header><text display-inline="yes-display-inline">Section 25D(b)(1), as amended by subsection <p> (c), is amended by striking <quote>and</quote> at the end of subparagraph (C), <p> by striking the period at the end of subparagraph (D) and inserting <quote>, <p> and</quote>, and by adding at the end the following new subparagraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H96C04EFC50274504AFBAC597C30E3D8" reported-display-style="italic" style="OLC"> <p> <subparagraph commented="no" display-inline="no-display-inline" id="H217A406B52BF4CC4BC09B3DD37005368"><enum>(E)</enum><text display-inline="yes-display-inline">$2,000 with respect to any qualified <p> geothermal heat pump property <p> expenditures.</text> <p> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H74637E4AECBD4B7D9919B967008EF184"><enum>(3)</enum><header display-inline="yes-display-inline">Qualified geothermal heat pump property <p> expenditure</header><text display-inline="yes-display-inline">Section 25D(d), <p> as amended by subsection (c), is amended by adding at the end the following new <p> paragraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H1711CFBB11954553B054A627D28BFDEF" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" display-inline="no-display-inline" id="HEAC45F0A9C924046A7B6ECB5C5F424C5"><enum>(5)</enum><header display-inline="yes-display-inline">Qualified geothermal heat pump property <p> expenditure</header> <p> <subparagraph commented="no" display-inline="no-display-inline" id="H437F8089C4344C0D90E4B0F554001549"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>qualified geothermal heat <p> pump property expenditure</term> means an expenditure for qualified geothermal <p> heat pump property installed on or in connection with a dwelling unit located <p> in the United States and used as a residence by the taxpayer.</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H82072B2A872F4A0A9C49587760E229CF"><enum>(B)</enum><header display-inline="yes-display-inline">Qualified geothermal heat pump <p> property</header><text display-inline="yes-display-inline">The term <p> <quote>qualified geothermal heat pump property</quote> means any equipment <p> which—</text> <p> <clause commented="no" display-inline="no-display-inline" id="HAE175F3C5F9B48C7BDD1D8B64DA5D0E5"><enum>(i)</enum><text display-inline="yes-display-inline">uses the ground or ground water as a <p> thermal energy source to heat the dwelling unit referred to in subparagraph (A) <p> or as a thermal energy sink to cool such dwelling unit, and</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="HC7585C35CCE3426DB5D3382883A1D252"><enum>(ii)</enum><text display-inline="yes-display-inline">meets the requirements of the Energy Star <p> program which are in effect at the time that the expenditure for such equipment <p> is <p> made.</text> <p> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDC358ACA3F284D5AA8F0840057CBE75F"><enum>(4)</enum><header display-inline="yes-display-inline">Maximum expenditures in case of joint <p> occupancy</header><text display-inline="yes-display-inline">Section <p> 25D(e)(4)(A), as amended by subsection (c), is amended by striking <p> <quote>and</quote> at the end of clause (iii), by striking the period at the <p> end of clause (iv) and inserting <quote>, and</quote>, and by adding at the end <p> the following new clause:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H991F3639274049B1BE10E0DE55C2A96F" reported-display-style="italic" style="OLC"> <p> <clause commented="no" display-inline="no-display-inline" id="HC15C6711DC4447F2B8BE69A509BA531"><enum>(v)</enum><text display-inline="yes-display-inline">$6,667 in the case of any qualified <p> geothermal heat pump property <p> expenditures.</text> <p> </clause><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H6F0C93D127294A5F8E5721FF1860BEB"><enum>(e)</enum><header display-inline="yes-display-inline">Credit allowed against alternative minimum <p> tax</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="HA52E6E6054C14F38BF004961DB00382B"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsection (c) of section 25D is amended to <p> read as follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H7BFD2B831E3049F0820092734CB3DC5E" reported-display-style="italic" style="OLC"> <p> <subsection commented="no" display-inline="no-display-inline" id="H96E96289F0494769A0E7BEABA74B2FCC"><enum>(c)</enum><header display-inline="yes-display-inline">Limitation based on amount of tax; <p> carryforward of unused credit</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="H81FB8EDBCFDE4052B8A7F5A17DE7CAC9"><enum>(1)</enum><header display-inline="yes-display-inline">Limitation based on amount of <p> tax</header><text display-inline="yes-display-inline">In the case of a taxable <p> year to which section 26(a)(2) does not apply, the credit allowed under <p> subsection (a) for the taxable year shall not exceed the excess of—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="HA89AD31D54554314987D545114462E10"><enum>(A)</enum><text display-inline="yes-display-inline">the sum of the regular tax liability (as <p> defined in section 26(b)) plus the tax imposed by section 55, over</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFA6A51F2F3044058A5B3DD2165EAFCB"><enum>(B)</enum><text display-inline="yes-display-inline">the sum of the credits allowable under this <p> subpart (other than this section) and section 27 for the taxable year.</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9E51C063F9B947FF8D675827FC701F1F"><enum>(2)</enum><header display-inline="yes-display-inline">Carryforward of unused credit</header> <p> <subparagraph commented="no" display-inline="no-display-inline" id="H1523402CCFDB4195BCD82956004969B5"><enum>(A)</enum><header display-inline="yes-display-inline">Rule for years in which all personal <p> credits allowed against regular and alternative minimum tax</header><text display-inline="yes-display-inline">In the case of a taxable year to which <p> section 26(a)(2) applies, if the credit allowable under subsection (a) exceeds <p> the limitation imposed by section 26(a)(2) for such taxable year reduced by the <p> sum of the credits allowable under this subpart (other than this section), such <p> excess shall be carried to the succeeding taxable year and added to the credit <p> allowable under subsection (a) for such succeeding taxable year.</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H87DFD4FDC83642FCAE8488765100A600"><enum>(B)</enum><header display-inline="yes-display-inline">Rule for other years</header><text display-inline="yes-display-inline">In the case of a taxable year to which <p> section 26(a)(2) does not apply, if the credit allowable under subsection (a) <p> exceeds the limitation imposed by paragraph (1) for such taxable year, such <p> excess shall be carried to the succeeding taxable year and added to the credit <p> allowable under subsection (a) for such succeeding taxable <p> year.</text> <p> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB6D7F536D7BB47F09F356EFEC36BC781"><enum>(2)</enum><header display-inline="yes-display-inline">Conforming amendments</header> <p> <subparagraph commented="no" display-inline="no-display-inline" id="H68C6B1EF142A410EA25488545D8DD450"><enum>(A)</enum><text display-inline="yes-display-inline">Section 23(b)(4)(B) is amended by inserting <p> <quote>and section 25D</quote> after <quote>this section</quote>.</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H445530E45FBE4CCCA829C633FC7C7FF7"><enum>(B)</enum><text display-inline="yes-display-inline">Section 24(b)(3)(B) is amended by striking <p> <quote>and 25B</quote> and inserting <quote>, 25B, and 25D</quote>.</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HEA68E0A870024DC0A1DF85AA4108058D"><enum>(C)</enum><text display-inline="yes-display-inline">Section 25B(g)(2) is amended by striking <p> <quote>section 23</quote> and inserting <quote>sections 23 and <p> 25D</quote>.</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H73787507E38B458181C400B0FD000955"><enum>(D)</enum><text display-inline="yes-display-inline">Section 26(a)(1) is amended by striking <p> <quote>and 25B</quote> and inserting <quote>25B, and 25D</quote>.</text> <p> </subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H82D4C8F6524445AE8DDBDF29D21B98F9"><enum>(f)</enum><header display-inline="yes-display-inline">Effective date</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="H84BF98CB13F44E65A8F7AE901E83036D"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in paragraph (2), the <p> amendments made by this section shall apply to taxable years beginning after <p> December 31, 2007.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2EE4CCFC5A304AFBB1129F57C80D6680"><enum>(2)</enum><header>Solar electric property <p> limitation</header><text>The amendments made by subsection (b) shall apply to <p> taxable years beginning after December 31, 2008.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9D6A7EFE19F34AFC81A43ED276246C26"><enum>(3)</enum><header display-inline="yes-display-inline">Application of EGTRRA sunset</header><text display-inline="yes-display-inline">The amendments made by subparagraphs (A) <p> and (B) of subsection (e)(2) shall be subject to title IX of the Economic <p> Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the <p> provisions of such Act to which such amendments relate.</text> <p> </paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HD437A3962F7B4E4F97437CB1384F81BB" section-type="subsequent-section"><enum>107.</enum><header display-inline="yes-display-inline">New clean renewable energy bonds</header> <p> <subsection commented="no" display-inline="no-display-inline" id="idFB706A68F0164ED999AD6E2D47C763DB"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subpart I of part IV of subchapter A of <p> chapter 1 is amended by adding at the end the following new section:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="HB6ACEB08E4EC474E91D06FEF08684232" reported-display-style="italic" style="OLC"> <p> <section commented="no" display-inline="no-display-inline" id="H54E7B0137002482281878B1EB2BE8BCB" section-type="subsequent-section"><enum>54C.</enum><header display-inline="yes-display-inline">New clean renewable energy bonds</header> <p> <subsection commented="no" display-inline="no-display-inline" id="H00E8DB8CF1944A2EB3F486C5BCC3D00"><enum>(a)</enum><header display-inline="yes-display-inline">New clean renewable energy <p> bond</header><text display-inline="yes-display-inline">For purposes of this <p> subpart, the term <term>new clean renewable energy bond</term> means any bond <p> issued as part of an issue if—</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="H0F1C11D71D724FE8849E59501B56008C"><enum>(1)</enum><text display-inline="yes-display-inline">100 percent of the available project <p> proceeds of such issue are to be used for capital expenditures incurred by <p> governmental bodies, public power providers, or cooperative electric companies <p> for one or more qualified renewable energy facilities,</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCBEF74B59AFB47B89600047BF1EB4726"><enum>(2)</enum><text display-inline="yes-display-inline">the bond is issued by a qualified issuer, <p> and</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4E05DCD75508412D8965D4AEC0CF0401"><enum>(3)</enum><text display-inline="yes-display-inline">the issuer designates such bond for <p> purposes of this section.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H344D93647ADB44C2BF2D9E79447C28C3"><enum>(b)</enum><header display-inline="yes-display-inline">Reduced credit amount</header><text display-inline="yes-display-inline">The annual credit determined under section <p> 54A(b) with respect to any new clean renewable energy bond shall be 70 percent <p> of the amount so determined without regard to this subsection.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="HEFCA34AD06A940B89BCBFABF325E74AB"><enum>(c)</enum><header display-inline="yes-display-inline">Limitation on amount of bonds <p> designated</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="H71CF34FDF2784CA3A7F62352FAFFB257"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The maximum aggregate face amount of bonds <p> which may be designated under subsection (a) by any issuer shall not exceed the <p> limitation amount allocated under this subsection to such issuer.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3B51764359334749A13C5B20733635C0"><enum>(2)</enum><header display-inline="yes-display-inline">National limitation on amount of bonds <p> designated</header><text display-inline="yes-display-inline">There is a <p> national new clean renewable energy bond limitation of $800,000,000 which shall <p> be allocated by the Secretary as provided in paragraph (3), except that—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="H47063384E64043B2A82346376DA9D24B"><enum>(A)</enum><text display-inline="yes-display-inline">not more than 33<fraction>1/3</fraction> <p> percent thereof may be allocated to qualified projects of public power <p> providers,</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9827F68FDE3A4911A469E599318894B5"><enum>(B)</enum><text display-inline="yes-display-inline">not more than 33<fraction>1/3</fraction> <p> percent thereof may be allocated to qualified projects of governmental bodies, <p> and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDA3CA9D68EE34A5391E67C4D53D7BA9F"><enum>(C)</enum><text display-inline="yes-display-inline">not more than 33<fraction>1/3</fraction> <p> percent thereof may be allocated to qualified projects of cooperative electric <p> companies.</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3F030860A72146F28042622E46DD884E"><enum>(3)</enum><header display-inline="yes-display-inline">Method of allocation</header> <p> <subparagraph commented="no" display-inline="no-display-inline" id="HBC9D76A87629459FAED0BD1D6CDE892F"><enum>(A)</enum><header display-inline="yes-display-inline">Allocation among public power <p> providers</header><text display-inline="yes-display-inline">After the Secretary <p> determines the qualified projects of public power providers which are <p> appropriate for receiving an allocation of the national new clean renewable <p> energy bond limitation, the Secretary shall, to the maximum extent practicable, <p> make allocations among such projects in such manner that the amount allocated <p> to each such project bears the same ratio to the cost of such project as the <p> limitation under paragraph (2)(A) bears to the cost of all such <p> projects.</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H59F9AF5D8D06444893ECCE47D046003E"><enum>(B)</enum><header display-inline="yes-display-inline">Allocation among governmental bodies and <p> cooperative electric companies</header><text display-inline="yes-display-inline">The Secretary shall make allocations of the <p> amount of the national new clean renewable energy bond limitation described in <p> paragraphs (2)(B) and (2)(C) among qualified projects of governmental bodies <p> and cooperative electric companies, respectively, in such manner as the <p> Secretary determines appropriate.</text> <p> </subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H8A211A7D3476406A8EC4581623090001"><enum>(d)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this section—</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="HA6EEF51A5EFC4D4D95F5A4188808D514"><enum>(1)</enum><header display-inline="yes-display-inline">Qualified renewable energy <p> facility</header><text display-inline="yes-display-inline">The term <p> <term>qualified renewable energy facility</term> means a qualified facility (as <p> determined under section 45(d) without regard to paragraphs (8) and (10) <p> thereof and to any placed in service date) owned by a public power provider, a <p> governmental body, or a cooperative electric company.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H025CA72BE53D4B48B40008791FED08C9"><enum>(2)</enum><header display-inline="yes-display-inline">Public power provider</header><text display-inline="yes-display-inline">The term <term>public power provider</term> <p> means a State utility with a service obligation, as such terms are defined in <p> section 217 of the Federal Power Act (as in effect on the date of the enactment <p> of this paragraph).</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA3D63DE9257948E09EF9BC19E5805178"><enum>(3)</enum><header display-inline="yes-display-inline">Governmental body</header><text display-inline="yes-display-inline">The term <term>governmental body</term> <p> means any State or Indian tribal government, or any political subdivision <p> thereof.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0A4CBB25B5214FEDACE5E5BF40135BC5"><enum>(4)</enum><header display-inline="yes-display-inline">Cooperative electric company</header><text display-inline="yes-display-inline">The term <term>cooperative electric <p> company</term> means a mutual or cooperative electric company described in <p> section 501(c)(12) or section 1381(a)(2)(C).</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7A310B2C23BA4CF597877DE0D940BEE"><enum>(5)</enum><header display-inline="yes-display-inline">Clean renewable energy bond <p> lender</header><text display-inline="yes-display-inline">The term <term>clean <p> renewable energy bond lender</term> means a lender which is a cooperative which <p> is owned by, or has outstanding loans to, 100 or more cooperative electric <p> companies and is in existence on February 1, 2002, and shall include any <p> affiliated entity which is controlled by such lender.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3BE978420EB042B88EA5010432522B7B"><enum>(6)</enum><header display-inline="yes-display-inline">Qualified issuer</header><text display-inline="yes-display-inline">The term <term>qualified issuer</term> <p> means a public power provider, a cooperative electric company, a governmental <p> body, a clean renewable energy bond lender, or a not-for-profit electric <p> utility which has received a loan or loan guarantee under the Rural <p> Electrification <p> Act.</text> <p> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="id17FB8377F5954359B42A38701F0007E2"><enum>(b)</enum><header display-inline="yes-display-inline">Conforming amendments</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="idE1A6CD62BBFF409D9311C4A72E77FAB6"><enum>(1)</enum><text display-inline="yes-display-inline">Paragraph (1) of section 54A(d) is amended <p> to read as follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idD2D720FE15B94A4B8F16A0F5F683D311" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" display-inline="no-display-inline" id="idEDE7811282654E7FAF6FA997506AA46E"><enum>(1)</enum><header display-inline="yes-display-inline">Qualified tax credit bond</header><text display-inline="yes-display-inline">The term <term>qualified tax credit <p> bond</term> means—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id244809C00643463BB2B9F56775F2D6A3"><enum>(A)</enum><text display-inline="yes-display-inline">a qualified forestry conservation bond, <p> or</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id13659CD4668149DC81CB0622F2CB928E"><enum>(B)</enum><text display-inline="yes-display-inline">a new clean renewable energy bond,</text> <p> </subparagraph><continuation-text commented="no" continuation-text-level="paragraph">which <p> is part of an issue that meets requirements of paragraphs (2), (3), (4), (5), <p> and <p> (6).</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF31431149C43493D865FADDBFFCC93C5"><enum>(2)</enum><text display-inline="yes-display-inline">Subparagraph (C) of section 54A(d)(2) is <p> amended to read as follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idB75A6C184BB24562B73EFC891B2F8E86" reported-display-style="italic" style="OLC"> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id98FE2B5E7346446AB185F2BF8A08C051"><enum>(C)</enum><header display-inline="yes-display-inline">Qualified purpose</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term <p> <term>qualified purpose</term> means—</text> <p> <clause commented="no" display-inline="no-display-inline" id="id37B8C27346474CE5BB0AC475D5D9A8E0"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of a qualified forestry <p> conservation bond, a purpose specified in section 54B(e), and</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="idB83D778568504CDAA39628BA495B92E0"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of a new clean renewable energy <p> bond, a purpose specified in section <p> 54C(a)(1).</text> <p> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id42A6F39D1127406B80A25BFC877C3A50"><enum>(3)</enum><text display-inline="yes-display-inline">The table of sections for subpart I of part <p> IV of subchapter A of chapter 1 is amended by adding at the end the following <p> new item:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id94A6B39C945B44D79BBC63C3ABAE6FFF" reported-display-style="italic" style="OLC"> <p> <toc changed="added" container-level="quoted-block-container" idref="H84E4FF4893D849EB890056C916790067" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration" reported-display-style="italic"> <p> <toc-entry bold="off" idref="H85287BA9F6C54044A49405E9007B70A4" level="section">Sec. 54C. Qualified clean renewable energy <p> bonds.</toc-entry> <p> </toc> <p> <after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id31424B36D4A24751A17EDAF017CAB210"><enum>(c)</enum><header>Extension for clean <p> renewable energy bonds</header><text>Subsection (m) of section 54 is amended by <p> striking <quote>December 31, 2008</quote> and inserting <quote>December 31, <p> 2009</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="id596CBF7C764048ED91A3F04F11067638"><enum>(d)</enum><header display-inline="yes-display-inline">Effective <p> date</header><text display-inline="yes-display-inline">The amendments made by <p> this section shall apply to obligations issued after the date of the enactment <p> of this Act.</text> <p> </subsection></section><section id="idDE70223936464509862C746B66527156"><enum>108.</enum><header>Credit for steel <p> industry fuel</header> <p> <subsection id="H1A77004B062C4B69A03C898700B55571"><enum>(a)</enum><header>Treatment as refined <p> coal</header> <p> <paragraph id="id10B38BCD7AC74F50A83458C3D842FC27"><enum>(1)</enum><header>In <p> general</header><text>Subparagraph (A) of section 45(c)(7) of the Internal <p> Revenue Code of 1986 (relating to refined coal), as amended by this Act, is <p> amended to read as follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idFA8CF80971434538AE42807ECE847E66" reported-display-style="italic" style="OLC"> <p> <subparagraph id="id9560F32FB0D04C16BD6DD2BD28B2781C"><enum>(A)</enum><header>In <p> general</header><text>The term <term>refined coal</term> means a fuel—</text> <p> <clause id="id00A22C7EF5334F01AAEB9A1C0CAD25A0"><enum>(i)</enum><text>which—</text> <p> <subclause id="ID7814ebf5142143feb9198ac3a55599fd"><enum>(I)</enum><text>is a liquid, gaseous, or <p> solid fuel produced from coal (including lignite) or high carbon fly ash, <p> including such fuel used as a feedstock,</text> <p> </subclause><subclause id="ID551db6ad92d741528823379ca9b12861"><enum>(II)</enum><text>is sold by the taxpayer <p> with the reasonable expectation that it will be used for purpose of producing <p> steam,</text> <p> </subclause><subclause id="ID8d0f9dad030d45b49fc88e6741167e59"><enum>(III)</enum><text>is certified by the <p> taxpayer as resulting (when used in the production of steam) in a qualified <p> emission reduction, and</text> <p> </subclause><subclause id="ID26495ca5c1c94a53800e9ea74c46fe14"><enum>(IV)</enum><text>is produced in such a <p> manner as to result in an increase of at least 50 percent in the market value <p> of the refined coal (excluding any increase caused by materials combined or <p> added during the production process), as compared to the value of the feedstock <p> coal, or</text> <p> </subclause></clause><clause id="id8625F6D6440A42CCBF99F6013E806196"><enum>(ii)</enum><text>which is steel industry <p> fuel.</text> <p> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph id="id37DBACB528D744B385E66E9755B54C28"><enum>(2)</enum><header>Steel industry fuel <p> defined</header><text>Paragraph (7) of section 45(c) of such Code is amended by <p> adding at the end the following new subparagraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idB2BEC086748948A4B9118357C2678052" reported-display-style="italic" style="OLC"> <p> <subparagraph id="id71E6E34EB5A1433ABC00FEB8E904B56B"><enum>(C)</enum><header>Steel industry <p> fuel</header> <p> <clause id="id84AF639D882D48DCABE92564005BC0A9"><enum>(i)</enum><header>In <p> general</header><text>The term <term>steel industry fuel</term> means a fuel <p> which—</text> <p> <subclause id="idBC38BB5A78CC43E2B664290388AACFF0"><enum>(I)</enum><text>is produced through a <p> process of liquifying coal waste sludge and distributing it on coal, and</text> <p> </subclause><subclause id="id3315973B9EFD4391BFF31D42AD6F1A64"><enum>(II)</enum><text>is used as a feedstock <p> for the manufacture of coke.</text> <p> </subclause></clause><clause id="idA7EBA0DA173542B19FBA8FF50493BEDE"><enum>(ii)</enum><header>Coal waste <p> sludge</header><text>The term <term>coal waste sludge</term> means the tar <p> decanter sludge and related byproducts of the coking process, including such <p> materials that have been stored in ground, in tanks and in lagoons, that have <p> been treated as hazardous wastes under applicable Federal environmental rules <p> absent liquefaction and processing with coal into a feedstock for the <p> manufacture of <p> coke.</text> <p> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph></subsection><subsection id="idFDE582370B164DCBA679D39ADB74A4B7"><enum>(b)</enum><header>Credit amount</header> <p> <paragraph id="id2E8EB9B024984AB9989D297FCC05B6A7"><enum>(1)</enum><header>In <p> general</header><text>Paragraph (8) of section 45(e) of the Internal Revenue <p> Code of 1986 (relating to refined coal production facilities) is amended by <p> adding at the end the following new subparagraph</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idEE7479DFF502441F98148E44547B9424" reported-display-style="italic" style="OLC"> <p> <subparagraph id="id589FD0F4DEDA44BCA06E4F79213DB39F"><enum>(D)</enum><header>Special rule for steel <p> industry fuel</header> <p> <clause id="id54D19E4AFDEC444BAD364B0E9A9C5DD6"><enum>(i)</enum><header>In <p> general</header><text>In the case of a taxpayer who produces steel industry <p> fuel—</text> <p> <subclause id="idE37C64DF681F46E7A4650AB724256547"><enum>(I)</enum><text>this paragraph shall be <p> applied separately with respect to steel industry fuel and other refined coal, <p> and</text> <p> </subclause><subclause id="idAC11FDF9F53841AC972F56946E04D5D8"><enum>(II)</enum><text>in applying this <p> paragraph to steel industry fuel, the modifications in clause (ii) shall <p> apply.</text> <p> </subclause></clause><clause id="idE3C753F3C59E446083F481B67EF0B0A7"><enum>(ii)</enum><header>Modifications</header> <p> <subclause id="id05F85FBC011242F08A8020EF3E05F3A6"><enum>(I)</enum><header>Credit <p> amount</header><text>Subparagraph (A) shall be applied by substituting <p> <quote>$2 per barrel-of-oil equivalent</quote> for <quote>$4.375 per <p> ton</quote>.</text> <p> </subclause><subclause id="idCDFF21C1B1B74C23B01EADCBCC699F9C"><enum>(II)</enum><header>Credit <p> period</header><text>In lieu of the 10-year period referred to in clauses (i) <p> and (ii)(II) of subparagraph (A), the credit period shall be the period <p> beginning on the later of the date such facility was originally placed in <p> service, the date the modifications described in clause (iii) were placed in <p> service, or October 1, 2008, and ending on the later of December 31, 2009, or <p> the date which is 1 year after the date such facility or the modifications <p> described in clause (iii) were placed in service.</text> <p> </subclause><subclause id="idF4F64205D18841ACA4D48F16AD0ECD1A"><enum>(III)</enum><header>No <p> phaseout</header><text>Subparagraph (B) shall not apply.</text> <p> </subclause></clause><clause id="idF4AE9631754647DBA8A53E78CE83026D"><enum>(iii)</enum><header>Modifications</header><text>The <p> modifications described in this clause are modifications to an existing <p> facility which allow such facility to produce steel industry fuel.</text> <p> </clause><clause id="idC1615003ADA3463B9458FBBFFE7DAB48"><enum>(iv)</enum><header>Barrel-of-oil <p> equivalent</header><text>For purposes of this subparagraph, a barrel-of-oil <p> equivalent is the amount of steel industry fuel that has a Btu content of <p> 5,800,000 <p> Btus.</text> <p> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph id="id0E9BF974175F47ABA0DB694AF9A94FBE"><enum>(2)</enum><header>Inflation <p> adjustment</header><text>Paragraph (2) of section 45(b) of such Code is amended <p> by inserting <quote>the $3 amount in subsection (e)(8)(D)(ii)(I),</quote> after <p> <quote>subsection (e)(8)(A),</quote>.</text> <p> </paragraph></subsection><subsection commented="no" id="id0687EA1251A54305803AD68DA5AECFEF"><enum>(c)</enum><header>Termination</header><text>Paragraph <p> (8) of <external-xref legal-doc="usc" parsable-cite="usc/26/45">section 45(d)</external-xref> of the Internal Revenue Code of 1986 (relating to refined <p> coal production facility), as amended by this Act, is amended to read as <p> follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id57E157207CF94E59BB25F0AEAB6F76FB" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" id="id0B21322D09B148678D7F6CD821458AB3"><enum>(8)</enum><header>Refined coal production <p> facility</header><text>In the case of a facility that produces refined coal, <p> the term <term>refined coal production facility</term> means—</text> <p> <subparagraph commented="no" id="id0EEA50A0015D4A72AA1ABC507253EF2E"><enum>(A)</enum><text>with respect to a <p> facility producing steel industry fuel, any facility (or any modification to a <p> facility) which is placed in service before January 1, 2010, and</text> <p> </subparagraph><subparagraph commented="no" id="id489A7243A4404AD388D2412C9D755983"><enum>(B)</enum><text>with respect to any other <p> facility producing refined coal, any facility placed in service after the date <p> of the enactment of the American Jobs Creation Act of 2004 and before January <p> 1, <p> 2010.</text> <p> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection id="idC3907F33B0344557858B27947758E24C"><enum>(d)</enum><header>Coordination with <p> credit for producing fuel from a nonconventional source</header> <p> <paragraph id="id006AFD2BB58644DFBCA342F7F336AC31"><enum>(1)</enum><header>In <p> general</header><text>Subparagraph (B) of section 45(e)(9) of the Internal <p> Revenue Code of 1986 is amended—</text> <p> <subparagraph id="id9AC83FA0076045649DF292F1733479C7"><enum>(A)</enum><text>by striking <quote>The <p> term</quote> and inserting the following:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id72740100D6EE49A3AFF83A25DC178A83" reported-display-style="italic" style="OLC"> <p> <clause id="id9D520BB958834F41B92E9CCFC50E4344"><enum>(i)</enum><header>In <p> general</header><text>The term</text> <p> </clause><after-quoted-block>, <p> and</after-quoted-block></quoted-block> <p> </subparagraph><subparagraph id="id4A3AFFF4152A43E4965B444C4330CEC1"><enum>(B)</enum><text>by adding at the end the <p> following new clause:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id1E04B9DE564948AC957428E9139FCF7B" reported-display-style="italic" style="OLC"> <p> <clause id="id7B2182499B5841F1B749911B787780CF"><enum>(ii)</enum><header>Exception for steel <p> industry coal</header><text>In the case of a facility producing steel industry <p> fuel, clause (i) shall not apply to so much of the refined coal produced at <p> such facility as is steel industry <p> fuel.</text> <p> </clause><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subparagraph></paragraph><paragraph id="id663BF72F6C1E442DAE5994E8DF0214A8"><enum>(2)</enum><header>No double <p> benefit</header><text>Section 45K(g)(2) of such Code is amended by adding at <p> the end the following new subparagraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idAA5F517387EA426D9FBB56ACFDF6064C" reported-display-style="italic" style="OLC"> <p> <subparagraph id="id67044DE4AB09437B8A8F217BBD3FB11B"><enum>(E)</enum><header>Coordination with <p> section 45</header><text>No credit shall be allowed with respect to any <p> qualified fuel which is steel industry fuel (as defined in section 45(c)(7)) if <p> a credit is allowed to the taxpayer for such fuel under section <p> 45.</text> <p> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph></subsection><subsection id="id7E01A17D31C9478FB9D8ADBAF9D794E9"><enum>(e)</enum><header>Effective <p> date</header><text>The amendments made by this section shall apply to fuel <p> produced and sold after September 30, 2008.</text> <p> </subsection></section><section commented="no" display-inline="no-display-inline" id="H529C574471784FDE965272612F947954" section-type="subsequent-section"><enum>109.</enum><header display-inline="yes-display-inline">Special rule to implement FERC and State <p> electric restructuring policy</header> <p> <subsection commented="no" display-inline="no-display-inline" id="HF77A14139B854B5FACD553AC8B21C101"><enum>(a)</enum><header display-inline="yes-display-inline">Extension for qualified electric <p> utilities</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="HC010B59D580E47F3BA00FC9F4100FE47"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (3) of section 451(i) is amended <p> by inserting <quote>(before January 1, 2010, in the case of a qualified <p> electric utility)</quote> after <quote>January 1, 2008</quote>.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA3F05616DD2F4794ADFCAB09E3624BDB"><enum>(2)</enum><header display-inline="yes-display-inline">Qualified electric utility</header><text display-inline="yes-display-inline">Subsection (i) of section 451 is amended by <p> redesignating paragraphs (6) through (10) as paragraphs (7) through (11), <p> respectively, and by inserting after paragraph (5) the following new <p> paragraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="HD1231AF7374D449D9D922C510527CB62" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" display-inline="no-display-inline" id="H5C54C4D074154E4A8577D179DF1F35DB"><enum>(6)</enum><header display-inline="yes-display-inline">Qualified electric utility</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <p> <quote>qualified electric utility</quote> means a person that, as of the date <p> of the qualifying electric transmission transaction, is vertically integrated, <p> in that it is both—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="HDEF9ECAF9CAC4DDFBBAA63A200FBC9C"><enum>(A)</enum><text display-inline="yes-display-inline">a transmitting utility (as defined in <p> section 3(23) of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/796">16 U.S.C. 796(23)</external-xref>)) with respect to the <p> transmission facilities to which the election under this subsection applies, <p> and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAA3BE9F526F0430196D200B9547D3755"><enum>(B)</enum><text display-inline="yes-display-inline">an electric utility (as defined in section <p> 3(22) of the Federal Power Act (16 U.S.C. <p> 796(22))).</text> <p> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HC6CA2CEE97314A2EBDD8D2046C35EAC"><enum>(b)</enum><header display-inline="yes-display-inline">Extension of period for transfer of <p> operational control authorized by FERC</header><text display-inline="yes-display-inline">Clause (ii) of section 451(i)(4)(B) is <p> amended by striking <quote>December 31, 2007</quote> and inserting <quote>the <p> date which is 4 years after the close of the taxable year in which the <p> transaction occurs</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H4D56FAD0DD19458DAB740092CA10CF00"><enum>(c)</enum><header display-inline="yes-display-inline">Property located outside the united states <p> not treated as exempt utility property</header><text display-inline="yes-display-inline">Paragraph (5) of section 451(i) is amended <p> by adding at the end the following new subparagraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="HD1C307CDDD274D0A98FEB0207F7800E" reported-display-style="italic" style="OLC"> <p> <subparagraph commented="no" display-inline="no-display-inline" id="H43179BB6BE284467AF003B7B3EB2D19E"><enum>(C)</enum><header display-inline="yes-display-inline">Exception for property located outside the <p> united states</header><text display-inline="yes-display-inline">The term <p> <quote>exempt utility property</quote> shall not include any property which is <p> located outside the United <p> States.</text> <p> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H34D6B76ED61D4677BCF91E4FE4F185F"><enum>(d)</enum><header display-inline="yes-display-inline">Effective Dates</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="H001C3204DEF9475FA706E65C737593BA"><enum>(1)</enum><header display-inline="yes-display-inline">Extension</header><text display-inline="yes-display-inline">The amendments made by subsection (a) shall <p> apply to transactions after December 31, 2007.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H94B2BB3F51E94E868F86DBB14BB16B5E"><enum>(2)</enum><header display-inline="yes-display-inline">Transfers of operational <p> control</header><text display-inline="yes-display-inline">The amendment made by <p> subsection (b) shall take effect as if included in section 909 of the American <p> Jobs Creation Act of 2004.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC3C79F04DADB45FC9DA03D44FC34AA00"><enum>(3)</enum><header display-inline="yes-display-inline">Exception for property located outside the <p> united states</header><text display-inline="yes-display-inline">The amendment <p> made by subsection (c) shall apply to transactions after the date of the <p> enactment of this Act.</text> <p> </paragraph></subsection></section></subtitle><subtitle commented="no" id="H4920317A7E084E15B07F711FE2CFAD" level-type="subsequent"><enum>B</enum><header display-inline="yes-display-inline">Carbon mitigation and coal <p> provisions</header> <p> <section commented="no" display-inline="no-display-inline" id="H1515B1E7E6BB45ED8446D978D7A464FA" section-type="subsequent-section"><enum>111.</enum><header display-inline="yes-display-inline">Expansion and modification of advanced coal <p> project investment credit</header> <p> <subsection commented="no" display-inline="no-display-inline" id="H565A631A4E924741B442B54C91CBC6C"><enum>(a)</enum><header display-inline="yes-display-inline">Modification of credit amount</header><text display-inline="yes-display-inline">Section 48A(a) is amended by striking <p> <quote>and</quote> at the end of paragraph (1), by striking the period at the <p> end of paragraph (2) and inserting <quote>, and</quote>, and by adding at the <p> end the following new paragraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="HFEC0BD29C97D49718CC3BEC6C1B44E00" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" display-inline="no-display-inline" id="H50CFDC80CB91482FB61667A3ACB71BBB"><enum>(3)</enum><text display-inline="yes-display-inline">30 percent of the qualified investment for <p> such taxable year in the case of projects described in clause (iii) of <p> subsection <p> (d)(3)(B).</text> <p> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="HFAF131E2D0254EAFAF07FCC422EFB960"><enum>(b)</enum><header display-inline="yes-display-inline">Expansion of aggregate <p> credits</header><text display-inline="yes-display-inline">Section 48A(d)(3)(A) <p> is amended by striking <quote>$1,300,000,000</quote> and inserting <p> <quote>$2,550,000,000</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="HB09D7F6840C04C6BA12939364CA7A766"><enum>(c)</enum><header display-inline="yes-display-inline">Authorization of Additional <p> Projects</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="H85F3B05D5EEC4B75B567AB43A06E00F1"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subparagraph (B) of section 48A(d)(3) is <p> amended to read as follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H52151FCD902C4A1AB92C7FB7BC400DF" reported-display-style="italic" style="OLC"> <p> <subparagraph commented="no" display-inline="no-display-inline" id="HF6E9A4F72A6D4CC3BD2D4B4B7899967B"><enum>(B)</enum><header display-inline="yes-display-inline">Particular projects</header><text display-inline="yes-display-inline">Of the dollar amount in subparagraph (A), <p> the Secretary is authorized to certify—</text> <p> <clause commented="no" display-inline="no-display-inline" id="HF3A06F3185BF468D8018D8E768C1885D"><enum>(i)</enum><text display-inline="yes-display-inline">$800,000,000 for integrated gasification <p> combined cycle projects the application for which is submitted during the <p> period described in paragraph (2)(A)(i),</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="H90B5F5DC4F484C279D0011C6CE3D9640"><enum>(ii)</enum><text display-inline="yes-display-inline">$500,000,000 for projects which use other <p> advanced coal-based generation technologies the application for which is <p> submitted during the period described in paragraph (2)(A)(i), and</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="H421E88A85BEA42C8BC9078E8CEED10C"><enum>(iii)</enum><text display-inline="yes-display-inline">$1,250,000,000 for advanced coal-based <p> generation technology projects the application for which is submitted during <p> the period described in paragraph <p> (2)(A)(ii).</text> <p> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1A4221AF8DB94700AC52765900224BBB"><enum>(2)</enum><header display-inline="yes-display-inline">Application period for additional <p> projects</header><text display-inline="yes-display-inline">Subparagraph (A) of <p> section 48A(d)(2) is amended to read as follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H967F92CDA598450ABBA14EF707EFB344" reported-display-style="italic" style="OLC"> <p> <subparagraph commented="no" display-inline="no-display-inline" id="HDF038BF954D444948D12F40195E5D2E1"><enum>(A)</enum><header display-inline="yes-display-inline">Application period</header><text display-inline="yes-display-inline">Each applicant for certification under this <p> paragraph shall submit an application meeting the requirements of subparagraph <p> (B). An applicant may only submit an application—</text> <p> <clause commented="no" display-inline="no-display-inline" id="H10A0E1E91C3847D3A761FCDBEBB234CF"><enum>(i)</enum><text display-inline="yes-display-inline">for an allocation from the dollar amount <p> specified in clause (i) or (ii) of paragraph (3)(B) during the 3-year period <p> beginning on the date the Secretary establishes the program under paragraph <p> (1), and</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="H023A101D6BB7475489F18D51D3A1DC20"><enum>(ii)</enum><text display-inline="yes-display-inline">for an allocation from the dollar amount <p> specified in paragraph (3)(B)(iii) during the 3-year period beginning at the <p> earlier of the termination of the period described in clause (i) or the date <p> prescribed by the <p> Secretary.</text> <p> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H30AADA62EAE64BA28412F007C3FCAFF0"><enum>(3)</enum><header display-inline="yes-display-inline">Capture and sequestration of carbon dioxide <p> emissions requirement</header> <p> <subparagraph commented="no" display-inline="no-display-inline" id="HC20BADC3C0174ADFAF09C193EE27ECA2"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 48A(e)(1) is amended by striking <p> <quote>and</quote> at the end of subparagraph (E), by striking the period at <p> the end of subparagraph (F) and inserting <quote>; and</quote>, and by adding <p> at the end the following new subparagraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H476D1A9EAF9042D6910900ED5DE80358" reported-display-style="italic" style="OLC"> <p> <subparagraph commented="no" display-inline="no-display-inline" id="HE840760D2F7D44FF9CC2049D9727EBE6"><enum>(G)</enum><text display-inline="yes-display-inline">in the case of any project the application <p> for which is submitted during the period described in subsection (d)(2)(A)(ii), <p> the project includes equipment which separates and sequesters at least 65 <p> percent (70 percent in the case of an application for reallocated credits under <p> subsection (d)(4)) of such project's total carbon dioxide <p> emissions.</text> <p> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE03105E2302A4451BF218E20CA48CA6"><enum>(B)</enum><header display-inline="yes-display-inline">Highest priority for projects which <p> sequester carbon dioxide emissions</header><text display-inline="yes-display-inline">Section 48A(e)(3) is amended by striking <p> <quote>and</quote> at the end of subparagraph (A)(iii), by striking the period <p> at the end of subparagraph (B)(iii) and inserting <quote>, and</quote>, and by <p> adding at the end the following new subparagraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="HEA8BEAFAD6DD4D67BA3528DEF8B18400" reported-display-style="italic" style="OLC"> <p> <subparagraph commented="no" display-inline="no-display-inline" id="HD89AF03D295344A08FB4D10502977CF9"><enum>(C)</enum><text display-inline="yes-display-inline">give highest priority to projects with the <p> greatest separation and sequestration percentage of total carbon dioxide <p> emissions.</text> <p> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDC6716A729E24DE7B12637D66C00395E"><enum>(C)</enum><header display-inline="yes-display-inline">Recapture of credit for failure to <p> sequester</header><text display-inline="yes-display-inline">Section 48A is <p> amended by adding at the end the following new subsection:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="HA62754AF8E3941A2B1D1B3E92F2400FE" reported-display-style="italic" style="OLC"> <p> <subsection commented="no" display-inline="no-display-inline" id="H3AF3551B6FE047A4A830B51673BC886"><enum>(i)</enum><header display-inline="yes-display-inline">Recapture of credit for failure To <p> sequester</header><text display-inline="yes-display-inline">The Secretary shall <p> provide for recapturing the benefit of any credit allowable under subsection <p> (a) with respect to any project which fails to attain or maintain the <p> separation and sequestration requirements of subsection <p> (e)(1)(G).</text> <p> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H131A71792A624436B1503E667624EE89"><enum>(4)</enum><header display-inline="yes-display-inline">Additional priority for research <p> partnerships</header><text display-inline="yes-display-inline">Section <p> 48A(e)(3)(B), as amended by paragraph (3)(B), is amended—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="H7F8DB03478A44673B77F342EC94DB5A"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>and</quote> at the end <p> of clause (ii),</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2C6D2E92B7BF4D88872CA0E2C3C9DDCF"><enum>(B)</enum><text display-inline="yes-display-inline">by redesignating clause (iii) as clause <p> (iv), and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF0059AEBBF104A1CB053EED97B95C2DB"><enum>(C)</enum><text display-inline="yes-display-inline">by inserting after clause (ii) the <p> following new clause:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="HA2BE93A2FD12420580AF39B386E6EBD3" reported-display-style="italic" style="OLC"> <p> <clause commented="no" display-inline="no-display-inline" id="H9D5ACE24BEAF40CB9BF41D8E75611B94"><enum>(iii)</enum><text display-inline="yes-display-inline">applicant participants who have a research <p> partnership with an eligible educational institution (as defined in section <p> 529(e)(5)), <p> and</text> <p> </clause><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H68CEF7B37259450E9BE2B02E3CADD7D"><enum>(5)</enum><header display-inline="yes-display-inline">Clerical amendment</header><text display-inline="yes-display-inline">Section 48A(e)(3) is amended by striking <p> <quote><header-in-text level="paragraph" style="OLC">integrated gasification <p> combined cycle</header-in-text></quote> in the heading and inserting <p> <quote><header-in-text level="paragraph" style="OLC">certain</header-in-text></quote>.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HCE4402460C464528AF53DB4D84F0FD4B"><enum>(d)</enum><header display-inline="yes-display-inline">Disclosure of allocations</header><text display-inline="yes-display-inline">Section 48A(d) is amended by adding at the <p> end the following new paragraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="HBD984F5238904D3D00C311B1F5E6A808" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" display-inline="no-display-inline" id="H2F85FFEB7AC7496F92322D7DCCBD6CE6"><enum>(5)</enum><header display-inline="yes-display-inline">Disclosure of allocations</header><text display-inline="yes-display-inline">The Secretary shall, upon making a <p> certification under this subsection or section 48B(d), publicly disclose the <p> identity of the applicant and the amount of the credit certified with respect <p> to such <p> applicant.</text> <p> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H9214C5AB99EB49D8802DEF8CC9CC29B4"><enum>(e)</enum><header display-inline="yes-display-inline">Effective dates</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="HE0CBA397364A41D39B613B26A9F8AAD1"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as otherwise provided in this <p> subsection, the amendments made by this section shall apply to credits the <p> application for which is submitted during the period described in section <p> 48A(d)(2)(A)(ii) of the Internal Revenue Code of 1986 and which are allocated <p> or reallocated after the date of the enactment of this Act.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H17D595D881E94C45950072F8D4BE4505"><enum>(2)</enum><header display-inline="yes-display-inline">Disclosure of allocations</header><text display-inline="yes-display-inline">The amendment made by subsection (d) shall <p> apply to certifications made after the date of the enactment of this <p> Act.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H335048694EB44B05A9314D9188E0010"><enum>(3)</enum><header display-inline="yes-display-inline">Clerical amendment</header><text display-inline="yes-display-inline">The amendment made by subsection (c)(5) <p> shall take effect as if included in the amendment made by section 1307(b) of <p> the Energy Tax Incentives Act of 2005.</text> <p> </paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HCC1B62BBD4FC49C6A707481006A356BB" section-type="subsequent-section"><enum>112.</enum><header display-inline="yes-display-inline">Expansion and modification of coal <p> gasification investment credit</header> <p> <subsection commented="no" display-inline="no-display-inline" id="H29371141236848C08D05B19231CFAFC8"><enum>(a)</enum><header display-inline="yes-display-inline">Modification of credit amount</header><text display-inline="yes-display-inline">Section 48B(a) is amended by inserting <p> <quote>(30 percent in the case of credits allocated under subsection <p> (d)(1)(B))</quote> after <quote>20 percent</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H7A30C551ACD545F8AE98C600ED370000"><enum>(b)</enum><header display-inline="yes-display-inline">Expansion of aggregate <p> credits</header><text display-inline="yes-display-inline">Section 48B(d)(1) is <p> amended by striking <quote>shall not exceed $350,000,000</quote> and all that <p> follows and inserting</text> <p> <quoted-block changed="added" display-inline="yes-display-inline" id="HB7B6074A98AE4ABDA3BFDB390000938B" reported-display-style="italic" style="OLC"> <p> <text>shall not <p> exceed—</text><subparagraph commented="no" display-inline="no-display-inline" id="H6170D7EB02584EFD9DE3D9E5B6D58F0"><enum>(A)</enum><text display-inline="yes-display-inline">$350,000,000, plus</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H455E250A2BF84A07A97F140093E9AEC4"><enum>(B)</enum><text display-inline="yes-display-inline">$250,000,000 for qualifying gasification <p> projects that include equipment which separates and sequesters at least 75 <p> percent of such project’s total carbon dioxide <p> emissions.</text> <p> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="HB15562784CE54D559C1300EBA5C45506"><enum>(c)</enum><header display-inline="yes-display-inline">Recapture of credit for failure to <p> sequester</header><text display-inline="yes-display-inline">Section 48B is <p> amended by adding at the end the following new subsection:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H0F643D57773E441ABAFD061F84346EBF" reported-display-style="italic" style="OLC"> <p> <subsection commented="no" display-inline="no-display-inline" id="HA91700176F0244979547D76CD0C8CEF4"><enum>(f)</enum><header display-inline="yes-display-inline">Recapture of credit for failure to <p> sequester</header><text display-inline="yes-display-inline">The Secretary shall <p> provide for recapturing the benefit of any credit allowable under subsection <p> (a) with respect to any project which fails to attain or maintain the <p> separation and sequestration requirements for such project under subsection <p> (d)(1).</text> <p> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="HBA8335F141A34127B43EEF89EDD58D41"><enum>(d)</enum><header display-inline="yes-display-inline">Selection priorities</header><text display-inline="yes-display-inline">Section 48B(d) is amended by adding at the <p> end the following new paragraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="HB59EAEB44CB2424288FF4F6DF0B256BD" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" display-inline="no-display-inline" id="H14220C9BD8A444238DD396266936002B"><enum>(4)</enum><header display-inline="yes-display-inline">Selection priorities</header><text display-inline="yes-display-inline">In determining which qualifying <p> gasification projects to certify under this section, the Secretary <p> shall—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="H6DBC7605069E4136AFF0B78478FAD73D"><enum>(A)</enum><text display-inline="yes-display-inline">give highest priority to projects with the <p> greatest separation and sequestration percentage of total carbon dioxide <p> emissions, and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6E3D3C2282C34FC1836C2DDCEFBC07EF"><enum>(B)</enum><text display-inline="yes-display-inline">give high priority to applicant <p> participants who have a research partnership with an eligible educational <p> institution (as defined in section <p> 529(e)(5)).</text> <p> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" id="idB85BCE3240904B23B31E05C0AB7969C1"><enum>(e)</enum><header>Eligible projects <p> include transportation grade liquid fuels</header><text>Section 48B(c)(7) <p> (defining eligible entity) is amended by striking <quote>and</quote> at the end <p> of subparagraph (F), by striking the period at the end of subparagraph (G) and <p> inserting <quote>, and</quote>, and by adding at the end the following new <p> subparagraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id88FA46DFCDBF4B9E942C3BE362A019DC" reported-display-style="italic" style="OLC"> <p> <subparagraph commented="no" id="id914CF1BA5225498FB41C3F6B77C5FF2D"><enum>(H)</enum><text>transportation grade <p> liquid <p> fuels.</text> <p> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H9445C84A5A5745D98D532D833FE622EA"><enum>(f)</enum><header display-inline="yes-display-inline">Effective <p> date</header><text display-inline="yes-display-inline">The amendments made by <p> this section shall apply to credits described in section 48B(d)(1)(B) of the <p> Internal Revenue Code of 1986 which are allocated or reallocated after the date <p> of the enactment of this Act.</text> <p> </subsection></section><section commented="no" display-inline="no-display-inline" id="H040CACF996F240D781ADD65E8EEDBD8B" section-type="subsequent-section"><enum>113.</enum><header display-inline="yes-display-inline">Temporary increase in coal excise tax; <p> funding of Black Lung Disability Trust Fund</header> <p> <subsection commented="no" display-inline="no-display-inline" id="id2186D93E4CCC422C84DB741CBE1406D2"><enum>(a)</enum><header display-inline="yes-display-inline">Extension of temporary <p> increase</header><text display-inline="yes-display-inline">Paragraph (2) of <p> section 4121(e) is amended—</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="H25F8354ECB0E46B6B07CE87D2DDF627C"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>January 1, 2014</quote> <p> in subparagraph (A) and inserting <quote>December 31, 2018</quote>, and</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA565C7C4672C4EAEAB56F9FC6F9499FB"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>January 1 after <p> 1981</quote> in subparagraph (B) and inserting <quote>December 31 after <p> 2007</quote>.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id4C291A30784F40F3AC2740A149622F4F"><enum>(b)</enum><header>Restructuring of Trust <p> Fund debt</header> <p> <paragraph id="id59AADE0A691B4FEBB5116EF377056620"><enum>(1)</enum><header>Definitions</header><text>For <p> purposes of this subsection—</text> <p> <subparagraph id="id43635FCF28644364916993F6E874F857"><enum>(A)</enum><header>Market value of the <p> outstanding repayable advances, plus accrued interest</header><text display-inline="yes-display-inline">The term <term>market value of the <p> outstanding repayable advances, plus accrued interest</term> means the present <p> value (determined by the Secretary of the Treasury as of the refinancing date <p> and using the Treasury rate as the discount rate) of the stream of principal <p> and interest payments derived assuming that each repayable advance that is <p> outstanding on the refinancing date is due on the 30th anniversary of the end <p> of the fiscal year in which the advance was made to the Trust Fund, and that <p> all such principal and interest payments are made on September 30 of the <p> applicable fiscal year.</text> <p> </subparagraph><subparagraph id="id268A43D49E644BD3B4AFBBF33FB8C7C3"><enum>(B)</enum><header>Refinancing <p> date</header><text display-inline="yes-display-inline">The term <p> <term>refinancing date</term> means the date occurring 2 days after the <p> enactment of this Act.</text> <p> </subparagraph><subparagraph id="id07B40A4D02D94A75A656E03E74C9AD0E"><enum>(C)</enum><header>Repayable <p> advance</header><text display-inline="yes-display-inline">The term <p> <term>repayable advance</term> means an amount that has been appropriated to <p> the Trust Fund in order to make benefit payments and other expenditures that <p> are authorized under <external-xref legal-doc="usc" parsable-cite="usc/26/9501">section 9501</external-xref> of the Internal Revenue Code of 1986 and are <p> required to be repaid when the Secretary of the Treasury determines that monies <p> are available in the Trust Fund for such purpose.</text> <p> </subparagraph><subparagraph id="idE4371A742ACC48DCBE055CE8A9370325"><enum>(D)</enum><header>Treasury <p> rate</header><text display-inline="yes-display-inline">The term <term>Treasury <p> rate</term> means a rate determined by the Secretary of the Treasury, taking <p> into consideration current market yields on outstanding marketable obligations <p> of the United States of comparable maturities.</text> <p> </subparagraph><subparagraph id="id3107E952B3424B0FA3E782140AB95D5C"><enum>(E)</enum><header>Treasury 1-year <p> rate</header><text display-inline="yes-display-inline">The term <term>Treasury <p> 1-year rate</term> means a rate determined by the Secretary of the Treasury, <p> taking into consideration current market yields on outstanding marketable <p> obligations of the United States with remaining periods to maturity of <p> approximately 1 year, to have been in effect as of the close of business 1 <p> business day prior to the date on which the Trust Fund issues obligations to <p> the Secretary of the Treasury under paragraph (2)(B).</text> <p> </subparagraph></paragraph><paragraph id="idC9053E9BC7DB41D89508FD20C2D7BFEB"><enum>(2)</enum><header>Refinancing of <p> outstanding principal of repayable advances and unpaid interest on such <p> advances</header> <p> <subparagraph id="id9DA3E1E2AC8F4438A764E70E4DDFB898"><enum>(A)</enum><header>Transfer to general <p> fund</header><text>On the refinancing date, the Trust Fund shall repay the <p> market value of the outstanding repayable advances, plus accrued interest, by <p> transferring into the general fund of the Treasury the following sums:</text> <p> <clause id="idA0E89C5E9E9A493D8DBE60A036929FBA"><enum>(i)</enum><text>The proceeds from <p> obligations that the Trust Fund shall issue to the Secretary of the Treasury in <p> such amounts as the Secretaries of Labor and the Treasury shall determine and <p> bearing interest at the Treasury rate, and that shall be in such forms and <p> denominations and be subject to such other terms and conditions, including <p> maturity, as the Secretary of the Treasury shall prescribe.</text> <p> </clause><clause id="idC520A4FCF2914F4093070AA0E5FEE10A"><enum>(ii)</enum><text>All, or that portion, of <p> the appropriation made to the Trust Fund pursuant to paragraph (3) that is <p> needed to cover the difference defined in that paragraph.</text> <p> </clause></subparagraph><subparagraph id="idBE7734D5E6BC4D0D88A25539B76F09AD"><enum>(B)</enum><header>Repayment of <p> obligations</header><text>In the event that the Trust Fund is unable to repay <p> the obligations that it has issued to the Secretary of the Treasury under <p> subparagraph (A)(i) and this subparagraph, or is unable to make benefit <p> payments and other authorized expenditures, the Trust Fund shall issue <p> obligations to the Secretary of the Treasury in such amounts as may be <p> necessary to make such repayments, payments, and expenditures, with a maturity <p> of 1 year, and bearing interest at the Treasury 1-year rate. These obligations <p> shall be in such forms and denominations and be subject to such other terms and <p> conditions as the Secretary of the Treasury shall prescribe.</text> <p> </subparagraph><subparagraph id="id4C855828027A4E44A7C29A6C4EDB1EF9"><enum>(C)</enum><header>Authority to issue <p> obligations</header><text>The Trust Fund is authorized to issue obligations to <p> the Secretary of the Treasury under subparagraphs (A)(i) and (B). The Secretary <p> of the Treasury is authorized to purchase such obligations of the Trust Fund. <p> For the purposes of making such purchases, the Secretary of the Treasury may <p> use as a public debt transaction the proceeds from the sale of any securities <p> issued under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/31">chapter 31</external-xref> of title 31, United States Code, and the purposes for <p> which securities may be issued under such chapter are extended to include any <p> purchase of such Trust Fund obligations under this subparagraph.</text> <p> </subparagraph></paragraph><paragraph id="id0499B3D326614AAB91E29B949744B02C"><enum>(3)</enum><header>One-time <p> appropriation</header><text display-inline="yes-display-inline">There is hereby <p> appropriated to the Trust Fund an amount sufficient to pay to the general fund <p> of the Treasury the difference between—</text> <p> <subparagraph id="id3E5758B469C64A558281F56457576950"><enum>(A)</enum><text>the market value of the <p> outstanding repayable advances, plus accrued interest; and</text> <p> </subparagraph><subparagraph id="id0A88AAFF7A0D4C03B797B4D40C576C90"><enum>(B)</enum><text>the proceeds from the <p> obligations issued by the Trust Fund to the Secretary of the Treasury under <p> paragraph (2)(A)(i).</text> <p> </subparagraph></paragraph><paragraph id="id9CAF1591E5BD4653BA9A01057CF59486"><enum>(4)</enum><header>Prepayment of Trust <p> Fund obligations</header><text display-inline="yes-display-inline">The Trust <p> Fund is authorized to repay any obligation issued to the Secretary of the <p> Treasury under subparagraphs (A)(i) and (B) of paragraph (2) prior to its <p> maturity date by paying a prepayment price that would, if the obligation being <p> prepaid (including all unpaid interest accrued thereon through the date of <p> prepayment) were purchased by a third party and held to the maturity date of <p> such obligation, produce a yield to the third-party purchaser for the period <p> from the date of purchase to the maturity date of such obligation substantially <p> equal to the Treasury yield on outstanding marketable obligations of the United <p> States having a comparable maturity to this period.</text> <p> </paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HA38FB90AD9A6426C9B94F28B57FD4787" section-type="subsequent-section"><enum>114.</enum><header display-inline="yes-display-inline">Special rules for refund of the coal excise <p> tax to certain coal producers and exporters</header> <p> <subsection commented="no" display-inline="no-display-inline" id="HFC1CFA926CDC4787855E5FA41C3EB1E"><enum>(a)</enum><header display-inline="yes-display-inline">Refund</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="H7A7ECC11D4F44D9AAC08C5C4F8B75C2E"><enum>(1)</enum><header display-inline="yes-display-inline">Coal producers</header> <p> <subparagraph commented="no" display-inline="no-display-inline" id="HC5BA01F485A64640864584CF7969626B"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Notwithstanding subsections (a)(1) and (c) <p> of section 6416 and <external-xref legal-doc="usc" parsable-cite="usc/26/6511">section 6511</external-xref> of the Internal Revenue Code of 1986, <p> if—</text> <p> <clause commented="no" display-inline="no-display-inline" id="H5C850480CDF647F90053C564C5046403"><enum>(i)</enum><text display-inline="yes-display-inline">a coal producer establishes that such coal <p> producer, or a party related to such coal producer, exported coal produced by <p> such coal producer to a foreign country or shipped coal produced by such coal <p> producer to a possession of the United States, or caused such coal to be <p> exported or shipped, the export or shipment of which was other than through an <p> exporter who meets the requirements of paragraph (2),</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="HB70DAAF027FE4D658EF0D5231D597A3"><enum>(ii)</enum><text display-inline="yes-display-inline">such coal producer filed an excise tax <p> return on or after October 1, 1990, and on or before the date of the enactment <p> of this Act, and</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="H551877FAADFF4E18958CEBA221EE7E34"><enum>(iii)</enum><text display-inline="yes-display-inline">such coal producer files a claim for refund <p> with the Secretary not later than the close of the 30-day period beginning on <p> the date of the enactment of this Act,</text> <p> </clause><continuation-text commented="no" continuation-text-level="subparagraph">then the Secretary shall pay to such coal <p> producer an amount equal to the tax paid under section 4121 of such Code on <p> such coal exported or shipped by the coal producer or a party related to such <p> coal producer, or caused by the coal producer or a party related to such coal <p> producer to be exported or shipped.</continuation-text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE1C6148322B6484E96AFB9CABB00FB00"><enum>(B)</enum><header display-inline="yes-display-inline">Special rules for certain <p> taxpayers</header><text display-inline="yes-display-inline">For purposes of <p> this section—</text> <p> <clause commented="no" display-inline="no-display-inline" id="HF050E41443E54AE09863BB9B9D983492"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">If a coal producer or a party related to a <p> coal producer has received a judgment described in clause (iii), such coal <p> producer shall be deemed to have established the export of coal to a foreign <p> country or shipment of coal to a possession of the United States under <p> subparagraph (A)(i).</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="HDD080110206F46CC852C1085062B8D8E"><enum>(ii)</enum><header display-inline="yes-display-inline">Amount of payment</header><text display-inline="yes-display-inline">If a taxpayer described in clause (i) is <p> entitled to a payment under subparagraph (A), the amount of such payment shall <p> be reduced by any amount paid pursuant to the judgment described in clause <p> (iii).</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="H6E88597C49F64910BD573CD479BDA047"><enum>(iii)</enum><header display-inline="yes-display-inline">Judgment described</header><text display-inline="yes-display-inline">A judgment is described in this <p> subparagraph if such judgment—</text> <p> <subclause commented="no" display-inline="no-display-inline" id="H9A3940B24C7B47A285CCB0A22BB2FC32"><enum>(I)</enum><text display-inline="yes-display-inline">is made by a court of competent <p> jurisdiction within the United States,</text> <p> </subclause><subclause commented="no" display-inline="no-display-inline" id="H7B14838B6AFF4359A81418EB2C791EFD"><enum>(II)</enum><text display-inline="yes-display-inline">relates to the constitutionality of any tax <p> paid on exported coal under <external-xref legal-doc="usc" parsable-cite="usc/26/4121">section 4121</external-xref> of the Internal Revenue Code of 1986, <p> and</text> <p> </subclause><subclause commented="no" display-inline="no-display-inline" id="H53C91BF4298840CA966FB62E48BFA9B"><enum>(III)</enum><text display-inline="yes-display-inline">is in favor of the coal producer or the <p> party related to the coal producer.</text> <p> </subclause></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4972C8D7ED444E75B89BA3A3E79E314C"><enum>(2)</enum><header display-inline="yes-display-inline">Exporters</header><text display-inline="yes-display-inline">Notwithstanding subsections (a)(1) and (c) <p> of section 6416 and <external-xref legal-doc="usc" parsable-cite="usc/26/6511">section 6511</external-xref> of the Internal Revenue Code of 1986, and a <p> judgment described in paragraph (1)(B)(iii) of this subsection, if—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="H380EAB7A47E64AB7A5FD976077ED5357"><enum>(A)</enum><text display-inline="yes-display-inline">an exporter establishes that such exporter <p> exported coal to a foreign country or shipped coal to a possession of the <p> United States, or caused such coal to be so exported or shipped,</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD2F9EC2E4D774E6F89305E5B6B6B3715"><enum>(B)</enum><text display-inline="yes-display-inline">such exporter filed a tax return on or <p> after October 1, 1990, and on or before the date of the enactment of this Act, <p> and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5AA833CE4ED1426AB13C295C61EEC0F2"><enum>(C)</enum><text display-inline="yes-display-inline">such exporter files a claim for refund with <p> the Secretary not later than the close of the 30-day period beginning on the <p> date of the enactment of this Act,</text> <p> </subparagraph><continuation-text commented="no" continuation-text-level="paragraph">then <p> the Secretary shall pay to such exporter an amount equal to $0.825 per ton of <p> such coal exported by the exporter or caused to be exported or shipped, or <p> caused to be exported or shipped, by the exporter.</continuation-text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H4B0D1D63ECC543A9AF560641D8EF33E1"><enum>(b)</enum><header display-inline="yes-display-inline">Limitations</header><text display-inline="yes-display-inline">Subsection (a) shall not apply with respect <p> to exported coal if a settlement with the Federal Government has been made with <p> and accepted by, the coal producer, a party related to such coal producer, or <p> the exporter, of such coal, as of the date that the claim is filed under this <p> section with respect to such exported coal. For purposes of this subsection, <p> the term <term>settlement with the Federal Government</term> shall not include <p> any settlement or stipulation entered into as of the date of the enactment of <p> this Act, the terms of which contemplate a judgment concerning which any party <p> has reserved the right to file an appeal, or has filed an appeal.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H531E42DA9D03430CA53CD05AC5E4EDD"><enum>(c)</enum><header display-inline="yes-display-inline">Subsequent refund prohibited</header><text display-inline="yes-display-inline">No refund shall be made under this section <p> to the extent that a credit or refund of such tax on such exported or shipped <p> coal has been paid to any person.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H5D9B88DD9BFD41078F8D8CB1D4449E4B"><enum>(d)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this section—</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="HD4F849EBCBD0495FA58CC799CB1C3825"><enum>(1)</enum><header display-inline="yes-display-inline">Coal producer</header><text display-inline="yes-display-inline">The term <term>coal producer</term> means <p> the person in whom is vested ownership of the coal immediately after the coal <p> is severed from the ground, without regard to the existence of any contractual <p> arrangement for the sale or other disposition of the coal or the payment of any <p> royalties between the producer and third parties. The term includes any person <p> who extracts coal from coal waste refuse piles or from the silt waste product <p> which results from the wet washing (or similar processing) of coal.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9B6BF32489B34AF39BA130C257EA5815"><enum>(2)</enum><header display-inline="yes-display-inline">Exporter</header><text display-inline="yes-display-inline">The term <term>exporter</term> means a <p> person, other than a coal producer, who does not have a contract, fee <p> arrangement, or any other agreement with a producer or seller of such coal to <p> export or ship such coal to a third party on behalf of the producer or seller <p> of such coal and—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="HF33A37E33D2A4EECBC0891612C4EDB23"><enum>(A)</enum><text display-inline="yes-display-inline">is indicated in the shipper’s export <p> declaration or other documentation as the exporter of record, or</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB35F1E506112477CB8232BC0CD634C64"><enum>(B)</enum><text display-inline="yes-display-inline">actually exported such coal to a foreign <p> country or shipped such coal to a possession of the United States, or caused <p> such coal to be so exported or shipped.</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD5DBEAD020CA4406BA2B692F3E13605D"><enum>(3)</enum><header display-inline="yes-display-inline">Related party</header><text display-inline="yes-display-inline">The term <term>a party related to such coal <p> producer</term> means a person who—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="HA31FE8C177A446C78270008CBBF93858"><enum>(A)</enum><text display-inline="yes-display-inline">is related to such coal producer through <p> any degree of common management, stock ownership, or voting control,</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAB1BD746094A46D0A8E0F263FEA0DEF"><enum>(B)</enum><text display-inline="yes-display-inline">is related (within the meaning of section <p> 144(a)(3) of the Internal Revenue Code of 1986) to such coal producer, <p> or</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5425C3FA6EA04D17889765CBFA1D6843"><enum>(C)</enum><text display-inline="yes-display-inline">has a contract, fee arrangement, or any <p> other agreement with such coal producer to sell such coal to a third party on <p> behalf of such coal producer.</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H06F0561DB1634FF096BC2CC60000C5AD"><enum>(4)</enum><header display-inline="yes-display-inline">Secretary</header><text display-inline="yes-display-inline">The term <term>Secretary</term> means the <p> Secretary of Treasury or the Secretary's designee.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HE401DDD91FC54938AA85CB01B4C13019"><enum>(e)</enum><header display-inline="yes-display-inline">Timing of refund</header><text display-inline="yes-display-inline">With respect to any claim for refund filed <p> pursuant to this section, the Secretary shall determine whether the <p> requirements of this section are met not later than 180 days after such claim <p> is filed. If the Secretary determines that the requirements of this section are <p> met, the claim for refund shall be paid not later than 180 days after the <p> Secretary makes such determination.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H5B1858712A444344992FD368E89B8E8E"><enum>(f)</enum><header display-inline="yes-display-inline">Interest</header><text display-inline="yes-display-inline">Any refund paid pursuant to this section <p> shall be paid by the Secretary with interest from the date of overpayment <p> determined by using the overpayment rate and method under section 6621 of the <p> Internal Revenue Code of 1986.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="HA6D92194C7A641B2B3001EE77D732366"><enum>(g)</enum><header display-inline="yes-display-inline">Denial of double benefit</header><text display-inline="yes-display-inline">The payment under subsection (a) with <p> respect to any coal shall not exceed—</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="H45559A14F75541679E76F31A11735C9"><enum>(1)</enum><text display-inline="yes-display-inline">in the case of a payment to a coal <p> producer, the amount of tax paid under section 4121 of the Internal Revenue <p> Code of 1986 with respect to such coal by such coal producer or a party related <p> to such coal producer, and</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H51CE20AD35F84476AC4CB73F83028009"><enum>(2)</enum><text display-inline="yes-display-inline">in the case of a payment to an exporter, an <p> amount equal to $0.825 per ton with respect to such coal exported by the <p> exporter or caused to be exported by the exporter.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HDC3DF9B2DD6849AAA73F2CCB249BEB03"><enum>(h)</enum><header display-inline="yes-display-inline">Application of section</header><text display-inline="yes-display-inline">This section applies only to claims on coal <p> exported or shipped on or after October 1, 1990, through the date of the <p> enactment of this Act.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="HFC31A8995D9044B684954E86000457B4"><enum>(i)</enum><header display-inline="yes-display-inline">Standing not conferred</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="HABC56F2E71EE418287EC25BC3029C690"><enum>(1)</enum><header display-inline="yes-display-inline">Exporters</header><text display-inline="yes-display-inline">With respect to exporters, this section <p> shall not confer standing upon an exporter to commence, or intervene in, any <p> judicial or administrative proceeding concerning a claim for refund by a coal <p> producer of any Federal or State tax, fee, or royalty paid by the coal <p> producer.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H480230B633F54DEDBCBDC54FBD7E91E8"><enum>(2)</enum><header display-inline="yes-display-inline">Coal <p> producers</header><text display-inline="yes-display-inline">With respect to <p> coal producers, this section shall not confer standing upon a coal producer to <p> commence, or intervene in, any judicial or administrative proceeding concerning <p> a claim for refund by an exporter of any Federal or State tax, fee, or royalty <p> paid by the producer and alleged to have been passed on to an exporter.</text> <p> </paragraph></subsection></section><section commented="no" id="HCC92B851C923422EB2E944169451F2A7" section-type="subsequent-section"><enum>115.</enum><header>Tax credit for <p> carbon dioxide sequestration</header> <p> <subsection commented="no" id="H87D43C561BCA49839FB78DF4ADCA8302"><enum>(a)</enum><header>In <p> general</header><text>Subpart D of part IV of subchapter A of chapter 1 <p> (relating to business credits) is amended by adding at the end the following <p> new section:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H3D79B4EFE31B45EC812E3BFD4705B7BF" reported-display-style="italic" style="OLC"> <p> <section commented="no" id="HF5E23CB2FF764CB7AC91433DC9C74041"><enum>45Q.</enum><header>Credit for carbon <p> dioxide sequestration</header> <p> <subsection commented="no" id="H25F3AFFFBF8E4B05A46195BC007C8B00"><enum>(a)</enum><header>General <p> rule</header><text display-inline="yes-display-inline">For purposes of section <p> 38, the carbon dioxide sequestration credit for any taxable year is an amount <p> equal to the sum of—</text> <p> <paragraph commented="no" id="H89C81ADC3C7143B38C9CA286619C76D9"><enum>(1)</enum><text>$20 per metric ton of <p> qualified carbon dioxide which is—</text> <p> <subparagraph commented="no" id="idDB514CA58837484EA3E673BB953FC5A4"><enum>(A)</enum><text>captured by the taxpayer <p> at a qualified facility, and</text> <p> </subparagraph><subparagraph commented="no" id="idABCC8B10A9FC40168284204941DBB6A8"><enum>(B)</enum><text>disposed of by the <p> taxpayer in secure geological storage, and</text> <p> </subparagraph></paragraph><paragraph commented="no" id="id263AD663F2594D57A3300270AC74031A"><enum>(2)</enum><text>$10 per metric ton of <p> qualified carbon dioxide which is—</text> <p> <subparagraph commented="no" id="idC8E8BD4C8A534351A8F63D3862D12400"><enum>(A)</enum><text>captured by the taxpayer <p> at a qualified facility, and</text> <p> </subparagraph><subparagraph commented="no" id="H8016984DDEBC47EE8CE3F2BCB7551243"><enum>(B)</enum><text>used by the taxpayer as a <p> tertiary injectant in a qualified enhanced oil or natural gas recovery <p> project.</text> <p> </subparagraph></paragraph></subsection><subsection commented="no" id="H0061877E3CF54F818E427E3B64CB355E"><enum>(b)</enum><header>Qualified carbon <p> dioxide</header><text>For purposes of this section—</text> <p> <paragraph commented="no" id="HE84CD6BFBFDD4D3C9FFDF9298334451D"><enum>(1)</enum><header>In <p> general</header><text>The term <term>qualified carbon dioxide</term> means <p> carbon dioxide captured from an industrial source which—</text> <p> <subparagraph commented="no" id="H7B84409BC36D43F5AFF785089BF1040"><enum>(A)</enum><text>would otherwise be <p> released into the atmosphere as industrial emission of greenhouse gas, <p> and</text> <p> </subparagraph><subparagraph commented="no" id="HC58A46A9B6F3445384D2EBDEAD37ABF4"><enum>(B)</enum><text>is measured at the source <p> of capture and verified at the point of disposal or injection.</text> <p> </subparagraph></paragraph><paragraph commented="no" id="idCBDE052431154D4A930A4F9AEDFF1DA1"><enum>(2)</enum><header>Recycled carbon <p> dioxide</header><text>The term <term>qualified carbon dioxide</term> includes <p> the initial deposit of captured carbon dioxide used as a tertiary injectant. <p> Such term does not include carbon dioxide that is re-captured, recycled, and <p> re-injected as part of the enhanced oil and natural gas recovery <p> process.</text> <p> </paragraph></subsection><subsection commented="no" id="id0553C3DF939A4CBA9F59AD8298BC9A32"><enum>(c)</enum><header>Qualified <p> facility</header><text>For purposes of this section, the term <term>qualified <p> facility</term> means any industrial facility—</text> <p> <paragraph commented="no" id="id2CE9573E671047DA8CF67B3F37263B96"><enum>(1)</enum><text>which is owned by the <p> taxpayer,</text> <p> </paragraph><paragraph commented="no" id="id3810173AA4954895A4C47400D0BF4BDF"><enum>(2)</enum><text>at which carbon capture <p> equipment is placed in service, and</text> <p> </paragraph><paragraph commented="no" id="id7E77E577A9234D1CAD4F8DD211D7CCE3"><enum>(3)</enum><text>which captures not less <p> than 500,000 metric tons of carbon dioxide during the taxable year.</text> <p> </paragraph></subsection><subsection commented="no" id="H7DC1B431575D4F57B3856D56F5F86E03"><enum>(d)</enum><header>Special rules and other <p> definitions</header><text>For purposes of this section—</text> <p> <paragraph commented="no" id="H2681E1EB7517454CBE74630050962129"><enum>(1)</enum><header>Only carbon dioxide <p> captured and disposed of or used within the United States taken into <p> account</header><text>The credit under this section shall apply only with <p> respect to qualified carbon dioxide the capture and disposal or use of which is <p> within—</text> <p> <subparagraph commented="no" id="HB09BFD384843402C91A5ADA4DF4CFAF"><enum>(A)</enum><text>the United States (within <p> the meaning of section 638(1)), or</text> <p> </subparagraph><subparagraph commented="no" id="H9DEEED622C4E4A34955D049B55AFCFFD"><enum>(B)</enum><text>a possession of the <p> United States (within the meaning of section 638(2)).</text> <p> </subparagraph></paragraph><paragraph commented="no" id="id48FDEA44EBA54047A961272830007EE2"><enum>(2)</enum><header>Secure geological <p> storage</header><text>The Secretary, in consultation with the Administrator of <p> the Environmental Protection Agency, shall establish regulations for <p> determining adequate security measures for the geological storage of carbon <p> dioxide under subsection (a)(1)(B) such that the carbon dioxide does not escape <p> into the atmosphere. Such term shall include storage at deep saline formations <p> and unminable coal seems under such conditions as the Secretary may determine <p> under such regulations.</text> <p> </paragraph><paragraph commented="no" id="HB6B275B73C9846CABA9B55001C2288C1"><enum>(3)</enum><header>Tertiary <p> injectant</header><text>The term <term>tertiary injectant</term> has the same <p> meaning as when used within section 193(b)(1).</text> <p> </paragraph><paragraph commented="no" id="idA3F1534E845144B992680156FF28A07B"><enum>(4)</enum><header>Qualified enhanced oil <p> or natural gas recovery project</header><text>The term <term>qualified enhanced <p> oil or natural gas recovery project</term> has the meaning given the term <p> <term>qualified enhanced oil recovery project</term> by section 43(c)(2), by <p> substituting <quote>crude oil or natural gas</quote> for <quote>crude <p> oil</quote> in subparagraph (A)(i) thereof.</text> <p> </paragraph><paragraph commented="no" id="HBE91DF5EFA4F4A33B29B6DA3515C2DB"><enum>(5)</enum><header>Credit attributable to <p> taxpayer</header><text>Any credit under this section shall be attributable to <p> the person that captures and physically or contractually ensures the disposal <p> of or the use as a tertiary injectant of the qualified carbon dioxide, except <p> to the extent provided in regulations prescribed by the Secretary.</text> <p> </paragraph><paragraph commented="no" id="idC7C30075053043DE8A7890BC8BD89A8E"><enum>(6)</enum><header>Recapture</header><text>The <p> Secretary shall, by regulations, provide for recapturing the benefit of any <p> credit allowable under subsection (a) with respect to any qualified carbon <p> dioxide which ceases to be captured, disposed of, or used as a tertiary <p> injectant in a manner consistent with the requirements of this section.</text> <p> </paragraph><paragraph commented="no" id="HD113CEA3ADE04B2287B2CCAED72CDD70"><enum>(7)</enum><header>Inflation <p> adjustment</header><text display-inline="yes-display-inline">In the case of any <p> taxable year beginning in a calendar year after 2009, there shall be <p> substituted for each dollar amount contained in subsection (a) an amount equal <p> to the product of—</text> <p> <subparagraph commented="no" id="H382DB68DAE824237B13F2290A42D4B79"><enum>(A)</enum><text display-inline="yes-display-inline">such dollar amount, multiplied by</text> <p> </subparagraph><subparagraph commented="no" id="H6842CA44F1E44F6E927BEE7E97905F5"><enum>(B)</enum><text>the inflation adjustment <p> factor for such calendar year determined under section 43(b)(3)(B) for such <p> calendar year, determined by substituting <quote>2008</quote> for <p> <quote>1990</quote>.</text> <p> </subparagraph></paragraph></subsection><subsection commented="no" id="idCA4DEBC90DD243B6A3F0D35E5CB8BFA8"><enum>(e)</enum><header>Application of <p> section</header><text>The credit under this section shall apply with respect to <p> qualified carbon dioxide before the end of the calendar year in which the <p> Secretary, in consultation with the Administrator of the Environmental <p> Protection Agency, certifies that 75,000,000 metric tons of qualified carbon <p> dioxide have been captured and disposed of or used as a tertiary <p> injectant.</text> <p> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H90F013324FAD48A996EF9E00C41C00DB"><enum>(b)</enum><header>Conforming <p> amendment</header><text>Section 38(b) (relating to general business credit) is <p> amended by striking <quote>plus</quote> at the end of paragraph (32), by <p> striking the period at the end of paragraph (33) and inserting <quote>, <p> plus</quote>, and by adding at the end of following new paragraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H5FC90DE844174AB48F7371193241F516" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" id="H0A552DB24A7146259D7686CFB7AEC15"><enum>(34)</enum><text display-inline="yes-display-inline">the carbon dioxide sequestration credit <p> determined under section <p> 45Q(a).</text> <p> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" id="HBEAD3BDDF74B42A1A55814C78B32539E"><enum>(c)</enum><header>Clerical <p> amendment</header><text>The table of sections for subpart B of part IV of <p> subchapter A of chapter 1 (relating to other credits) is amended by adding at <p> the end the following new section:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="HF2EE887F0EA9441F9CA9E6BE2277EDF6" reported-display-style="italic" style="OLC"> <p> <toc changed="added" container-level="quoted-block-container" idref="H3D79B4EFE31B45EC812E3BFD4705B7BF" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration" reported-display-style="italic"> <p> <toc-entry idref="HF5E23CB2FF764CB7AC91433DC9C74041" level="section">Sec. 45Q. Credit for carbon <p> dioxide <p> sequestration.</toc-entry> <p> </toc> <p> <after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="HB77DC11FC51F483900326C1C077060E2"><enum>(d)</enum><header>Effective <p> date</header><text>The amendments made by this section shall apply to carbon <p> dioxide captured after the date of the enactment of this Act.</text> <p> </subsection></section><section id="id3F5D4D4A3F164411BB68199BFBE47144"><enum>116.</enum><header>Certain income and <p> gains relating to industrial source carbon dioxide treated as qualifying income <p> for publicly traded partnerships</header> <p> <subsection id="id6DE7E58A2D18442EA104620A2AF90CBA"><enum>(a)</enum><header>In <p> general</header><text>Subparagraph (E) of section 7704(d)(1) (defining <p> qualifying income) is amended by inserting <quote>or industrial source carbon <p> dioxide</quote> after <quote>timber)</quote>.</text> <p> </subsection><subsection id="id466C0FC8B41D467882C1BBC3D7A06A76"><enum>(b)</enum><header>Effective <p> date</header><text>The amendment made by this section shall take effect on the <p> date of the enactment of this Act, in taxable years ending after such <p> date.</text> <p> </subsection></section><section commented="no" display-inline="no-display-inline" id="H864148CE02874C9287CDA9A1667813FB" section-type="subsequent-section"><enum>117.</enum><header display-inline="yes-display-inline">Carbon audit of the tax code</header> <p> <subsection commented="no" display-inline="no-display-inline" id="H4A3E9569F65F4801873D791F235EC39B"><enum>(a)</enum><header display-inline="yes-display-inline">Study</header><text display-inline="yes-display-inline">The Secretary of the Treasury shall enter <p> into an agreement with the National Academy of Sciences to undertake a <p> comprehensive review of the Internal Revenue Code of 1986 to identify the types <p> of and specific tax provisions that have the largest effects on carbon and <p> other greenhouse gas emissions and to estimate the magnitude of those <p> effects.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="HEE6FD7288C234A6D8D939B96F73C6BD"><enum>(b)</enum><header display-inline="yes-display-inline">Report</header><text display-inline="yes-display-inline">Not later than 2 years after the date of <p> enactment of this Act, the National Academy of Sciences shall submit to <p> Congress a report containing the results of study authorized under this <p> section.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H4DF1067359204FE8876BC7AD16ED6B70"><enum>(c)</enum><header display-inline="yes-display-inline">Authorization of <p> appropriations</header><text display-inline="yes-display-inline">There is <p> authorized to be appropriated to carry out this section $1,500,000 for the <p> period of fiscal years 2009 and 2010.</text> <p> </subsection></section></subtitle><enum>II</enum><header display-inline="yes-display-inline">Transportation and domestic fuel security <p> provisions</header> <p> <section commented="no" display-inline="no-display-inline" id="HFA3C95CE3A0C44978C00315E2BCBCA00" section-type="subsequent-section"><enum>201.</enum><header display-inline="yes-display-inline">Inclusion of cellulosic biofuel in bonus <p> depreciation for biomass ethanol plant property</header> <p> <subsection commented="no" display-inline="no-display-inline" id="H8F7922C514B24C76BA42FE10B701D"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (3) of section 168(l) is amended <p> to read as follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H53A950BA60E94626AFA567C057949516" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" display-inline="no-display-inline" id="H99E491112498442F85AFA8E3008FAE02"><enum>(3)</enum><header display-inline="yes-display-inline">Cellulosic biofuel</header><text display-inline="yes-display-inline">The term <term>cellulosic biofuel</term> <p> means any liquid fuel which is produced from any lignocellulosic or <p> hemicellulosic matter that is available on a renewable or recurring <p> basis.</text> <p> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H8E09387715424B80997EAA50114CC5AD"><enum>(b)</enum><header display-inline="yes-display-inline">Conforming amendments</header><text display-inline="yes-display-inline">Subsection (l) of section 168 is <p> amended—</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="H8A83C9E79CEA459C8D5F5F0416C2F700"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>cellulosic biomass <p> ethanol</quote> each place it appears and inserting <quote>cellulosic <p> biofuel</quote>,</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0E084954534A44F0AAFC1D76556E42ED"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="subsection" style="OLC">cellulosic biomass <p> ethanol</header-in-text></quote> in the heading of such subsection and <p> inserting <quote><header-in-text level="subsection" style="OLC">cellulosic <p> biofuel</header-in-text></quote>, and</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H749F77DFB5694872AF41C120EF47819D"><enum>(3)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="paragraph" style="OLC">cellulosic biomass <p> ethanol</header-in-text></quote> in the heading of paragraph (2) thereof and <p> inserting <quote><header-in-text level="paragraph" style="OLC">cellulosic <p> biofuel</header-in-text></quote>.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB420AA76F8364E2C9F5E6878DC8EA039"><enum>(c)</enum><header display-inline="yes-display-inline">Effective <p> date</header><text display-inline="yes-display-inline">The amendments made by <p> this section shall apply to property placed in service after the date of the <p> enactment of this Act, in taxable years ending after such date.</text> <p> </subsection></section><section commented="no" display-inline="no-display-inline" id="idF9D7E58E0E7D4B08A20842954DA19E52" section-type="subsequent-section"><enum>202.</enum><header display-inline="yes-display-inline">Credits for biodiesel and renewable <p> diesel</header> <p> <subsection commented="no" display-inline="no-display-inline" id="id11E109712FCA417CB6102063E51DFF11"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Sections 40A(g), 6426(c)(6), and <p> 6427(e)(5)(B) are each amended by striking <quote>December 31, 2008</quote> and <p> inserting <quote>December 31, 2009</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="idDC1DB1E1345D4D4AB7CD0E7A408E173E"><enum>(b)</enum><header display-inline="yes-display-inline">Increase in rate of credit</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="idD2394655EDC349479668A80BFBBFA222"><enum>(1)</enum><header display-inline="yes-display-inline">Income tax credit</header><text display-inline="yes-display-inline">Paragraphs (1)(A) and (2)(A) of section <p> 40A(b) are each amended by striking <quote>50 cents</quote> and inserting <p> <quote>$1.00</quote>.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idEECD7FB8A2B24126AD1CD5F813836FC8"><enum>(2)</enum><header display-inline="yes-display-inline">Excise tax credit</header><text display-inline="yes-display-inline">Paragraph (2) of section 6426(c) is amended <p> to read as follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idF390F1A2B9F14A79A3D66C0EBD86E342" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" display-inline="no-display-inline" id="id19E75B8AC7B64D55891FA96CAA7B1272"><enum>(2)</enum><header display-inline="yes-display-inline">Applicable amount</header><text display-inline="yes-display-inline">For purposes of this subsection, the <p> applicable amount is <p> $1.00.</text> <p> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA8397E8D13FE4E318A6EFC122FF2BA26"><enum>(3)</enum><header display-inline="yes-display-inline">Conforming amendments</header> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id338E2C9D82C34569A3D58E8256CE21D6"><enum>(A)</enum><text display-inline="yes-display-inline">Subsection (b) of section 40A is amended by <p> striking paragraph (3) and by redesignating paragraphs (4) and (5) as <p> paragraphs (3) and (4), respectively.</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idE8013872303445FDBA82D8AED063B327"><enum>(B)</enum><text display-inline="yes-display-inline">Paragraph (2) of section 40A(f) is amended <p> to read as follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idD23DE1F479D14EE0BD67BB5B141E0C37" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" display-inline="no-display-inline" id="id4321C4BA842C43C5A159404F5D59BEE3"><enum>(2)</enum><header display-inline="yes-display-inline">Exception</header><text display-inline="yes-display-inline">Subsection (b)(4) shall not apply with <p> respect to renewable <p> diesel.</text> <p> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idE6EF15A39DF346D782163AEDCDFCF27A"><enum>(C)</enum><text display-inline="yes-display-inline">Paragraphs (2) and (3) of section 40A(e) <p> are each amended by striking <quote>subsection (b)(5)(C)</quote> and inserting <p> <quote>subsection (b)(4)(C)</quote>.</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id2C54E876F0A6466E95C39E24F6E4843E"><enum>(D)</enum><text display-inline="yes-display-inline">Clause (ii) of section 40A(d)(3)(C) is <p> amended by striking <quote>subsection (b)(5)(B)</quote> and inserting <p> <quote>subsection (b)(4)(B)</quote>.</text> <p> </subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idD6436EC4585341DC83D959BEF90ACCA7"><enum>(c)</enum><header display-inline="yes-display-inline">Uniform treatment of diesel produced from <p> biomass</header><text display-inline="yes-display-inline">Paragraph (3) of <p> section 40A(f) is amended—</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="idB0D341230EA94649A775EA605841AF97"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>diesel fuel</quote> and <p> inserting <quote>liquid fuel</quote>,</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idEE10CF737BF745A28130627792CAB3FE"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>using a thermal <p> depolymerization process</quote>, and</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5E5DA5B9F87C4BD7B57F775D11D2D65B"><enum>(3)</enum><text display-inline="yes-display-inline">by inserting <quote>, or other equivalent <p> standard approved by the Secretary</quote> after <quote>D396</quote>.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H31F77317824E490C9F18055936EFA913"><enum>(d)</enum><header display-inline="yes-display-inline">Coproduction of renewable diesel with <p> petroleum feedstock</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="H654B848834B449E8A500524D1000A52D"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (3) of section 40A(f) is amended <p> by adding at the end the following new sentences: <quote>Such term does not <p> include any fuel derived from coprocessing biomass with a feedstock which is <p> not biomass. For purposes of this paragraph, the term <term>biomass</term> has <p> the meaning given such term by section 45K(c)(3).</quote>.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9721D740726D4ADDA739738B25D22283"><enum>(2)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">Paragraph (3) of section 40A(f) is amended <p> by striking <quote>(as defined in section 45K(c)(3))</quote>.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idD1CEE3994F9D4BBCB307542AAB36EEFA"><enum>(e)</enum><header>Eligibility of certain <p> aviation fuel</header><text>Subsection (f) of section 40A (relating to <p> renewable diesel) is amended by adding at the end the following new <p> paragraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id08C87AFF63214B7D8361B7F4C1C2E56A" reported-display-style="italic" style="OLC"> <p> <paragraph id="ID992bc9d8648349d2a28ab9fd4536730b"><enum>(4)</enum><header>Certain aviation <p> fuel</header> <p> <subparagraph id="IDf32df8e0c9114b74b1e335bd471b02cc"><enum>(A)</enum><header>In <p> general</header><text>Except as provided in the last 3 sentences of paragraph <p> (3), the term <quote>renewable diesel</quote> shall include fuel derived from <p> biomass which meets the requirements of a Department of Defense specification <p> for military jet fuel or an American Society of Testing and Materials <p> specification for aviation turbine fuel.</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID71309c8bf4664e00bc4a87bf81dd204b"><enum>(B)</enum><header>Application of mixture <p> credits</header><text>In the case of fuel which is treated as renewable diesel <p> solely by reason of subparagraph (A), subsection (b)(1) and section 6426(c) <p> shall be applied with respect to such fuel by treating kerosene as though it <p> were diesel <p> fuel.</text> <p> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection id="IDde7d45a2c239480a94faa9737b2bc08f"><enum>(f)</enum><header>Modification relating <p> to definition of agri-biodiesel</header><text>Paragraph (2) of section 40A(d) <p> (relating to agri-biodiesel) is amended by striking <quote>and mustard <p> seeds</quote> and inserting <quote>mustard seeds, and camelina</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="id9A24ABCB512D4E5186006394EB924E69"><enum>(g)</enum><header display-inline="yes-display-inline">Effective date</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="idA84DBFAF4B0B4719A96EEE4A05779736"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as otherwise provided in this <p> subsection, the amendments made by this section shall apply to fuel produced, <p> and sold or used, after December 31, 2008.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id3D9A304614D642B9B927AA65E31988BE"><enum>(2)</enum><header display-inline="yes-display-inline">Coproduction of renewable diesel with <p> petroleum feedstock</header><text display-inline="yes-display-inline">The <p> amendment made by subsection (d) shall apply to fuel produced, and sold or <p> used, after the date of the enactment of this Act.</text> <p> </paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H16EFCB00D8094FE8935B5D144BE9FAD" section-type="subsequent-section"><enum>203.</enum><header display-inline="yes-display-inline">Clarification that credits for fuel are <p> designed to provide an incentive for United States production</header> <p> <subsection commented="no" display-inline="no-display-inline" id="id3A7BD231E1D741A7B22A3EBD939C7D04"><enum>(a)</enum><header display-inline="yes-display-inline">Alcohol fuels credit</header><text display-inline="yes-display-inline">Subsection (d) of section 40 is amended by <p> adding at the end the following new paragraph:</text> <p> <quoted-block act-name="" changed="added" display-inline="no-display-inline" id="id8F7C123D5A1D4BBF8999D7A765A90FE7" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" display-inline="no-display-inline" id="idF1A5A239360F454999833951165008E5"><enum>(7)</enum><header display-inline="yes-display-inline">Limitation to alcohol with connection to <p> the United States</header><text display-inline="yes-display-inline">No credit <p> shall be determined under this section with respect to any alcohol which is <p> produced outside the United States for use as a fuel outside the United States. <p> For purposes of this paragraph, the term <term>United States</term> includes <p> any possession of the United <p> States.</text> <p> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H7EB5E8ACF2DF407E88C6D7C15100B4FA"><enum>(b)</enum><header display-inline="yes-display-inline">Biodiesel fuels credit</header><text display-inline="yes-display-inline">Subsection (d) of section 40A is amended by <p> adding at the end the following new paragraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H77CA12CF33984EFE85580000B01B42DC" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" display-inline="no-display-inline" id="HD1D51F2F24A148EFA87B1C6C0089D17D"><enum>(5)</enum><header display-inline="yes-display-inline">Limitation to biodiesel with connection to <p> the United States</header><text display-inline="yes-display-inline">No credit <p> shall be determined under this section with respect to any biodiesel which is <p> produced outside the United States for use as a fuel outside the United States. <p> For purposes of this paragraph, the term <term>United States</term> includes <p> any possession of the United <p> States.</text> <p> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="HF67C2B1E04554713A392CE98BE3E5227"><enum>(c)</enum><header display-inline="yes-display-inline">Excise tax credit</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="HBECE8537608441BF91866F76ABB6BF70"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 6426 is amended by adding at the <p> end the following new subsection:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H3779C00AB6BB460E00EA38D17E8B12F8" reported-display-style="italic" style="OLC"> <p> <subsection commented="no" display-inline="no-display-inline" id="H0E0EEC0DACBC4248B0A412543EFC7F01"><enum>(i)</enum><header display-inline="yes-display-inline">Limitation to fuels with connection to the <p> United States</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="HE56F17B30D524727005C4D5CF7A58BF"><enum>(1)</enum><header display-inline="yes-display-inline">Alcohol</header><text display-inline="yes-display-inline">No credit shall be determined under this <p> section with respect to any alcohol which is produced outside the United States <p> for use as a fuel outside the United States.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC8B9925B701542408BF34CACB46850CE"><enum>(2)</enum><header display-inline="yes-display-inline">Biodiesel and alternative <p> fuels</header><text display-inline="yes-display-inline">No credit shall be <p> determined under this section with respect to any biodiesel or alternative fuel <p> which is produced outside the United States for use as a fuel outside the <p> United States.</text> <p> </paragraph><continuation-text commented="no" continuation-text-level="subsection">For <p> purposes of this subsection, the term <term>United States</term> includes any <p> possession of the United <p> States.</continuation-text></subsection><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC74B65DC7E9C4807943087CC2452D32"><enum>(2)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">Subsection (e) of section 6427 is amended <p> by redesignating paragraph (5) as paragraph (6) and by inserting after <p> paragraph (4) the following new paragraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="HAEBF7E4F98444F67B9E347FAC6901825" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" display-inline="no-display-inline" id="H464649C0230E4E52826D50F0577070B5"><enum>(5)</enum><header display-inline="yes-display-inline">Limitation to fuels with connection to the <p> United States</header><text display-inline="yes-display-inline">No amount shall <p> be payable under paragraph (1) or (2) with respect to any mixture or <p> alternative fuel if credit is not allowed with respect to such mixture or <p> alternative fuel by reason of section <p> 6426(i).</text> <p> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H675D9DBD9CA84DBBB15ED04C340009C6"><enum>(d)</enum><header display-inline="yes-display-inline">Effective <p> date</header><text display-inline="yes-display-inline">The amendments made by <p> this section shall apply to claims for credit or payment made on or after May <p> 15, 2008.</text> <p> </subsection></section><section commented="no" id="id684D8F188BDB44E7A4497DA8E9339F0B"><enum>204.</enum><header>Extension and <p> modification of alternative fuel credit</header> <p> <subsection commented="no" id="id86303A6D85694AAE9BC275FCE9DC7663"><enum>(a)</enum><header>Extension</header> <p> <paragraph commented="no" id="id8A71FA406C114D139714A33CB1F63EFF"><enum>(1)</enum><header>Alternative fuel <p> credit</header><text>Paragraph (4) of section 6426(d) (relating to alternative <p> fuel credit) is amended by striking <quote>September 30, 2009</quote> and <p> inserting <quote>December 31, 2009</quote>.</text> <p> </paragraph><paragraph commented="no" id="id3CA99BBBECE048CCAA1886E43DD19D71"><enum>(2)</enum><header>Alternative fuel <p> mixture credit</header><text>Paragraph (3) of section 6426(e) (relating to <p> alternative fuel mixture credit) is amended by striking <quote>September 30, <p> 2009</quote> and inserting <quote>December 31, 2009</quote>.</text> <p> </paragraph><paragraph commented="no" id="idE3F6B374A6E24BB79D7E2623B2252FB7"><enum>(3)</enum><header>Payments</header><text>Subparagraph <p> (C) of section 6427(e)(5) (relating to termination) is amended by striking <p> <quote>September 30, 2009</quote> and inserting <quote>December 31, <p> 2009</quote>.</text> <p> </paragraph></subsection><subsection commented="no" id="idA783423AEFF04C089407266DEDAC8006"><enum>(b)</enum><header>Modifications</header> <p> <paragraph commented="no" id="id57ABC68E00444030AEC3C7105CFDEF77"><enum>(1)</enum><header>Alternative fuel to <p> include compressed or liquified biomass gas</header><text>Paragraph (2) of <p> section 6426(d) (relating to alternative fuel credit) is amended by striking <p> <quote>and</quote> at the end of subparagraph (E), by redesignating <p> subparagraph (F) as subparagraph (G), and by inserting after subparagraph (E) <p> the following new subparagraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id1788E2C43D444BD1B8CA34FCF6DEA31C" reported-display-style="italic" style="OLC"> <p> <subparagraph commented="no" id="idB1D4B2759981416FBAF98BDB910C68FE"><enum>(F)</enum><text>compressed or liquefied <p> gas derived from biomass (as defined in section 45K(c)(3)), <p> and</text> <p> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" id="idA59F7F6ABC8D47B6B4AB9A0B94780624"><enum>(2)</enum><header>Credit allowed for <p> aviation use of fuel</header><text>Paragraph (1) of section 6426(d) is amended <p> by inserting <quote>sold by the taxpayer for use as a fuel in aviation,</quote> <p> after <quote>motorboat,</quote>.</text> <p> </paragraph></subsection><subsection id="id00FBE43B9806491299B03A30955B05AE"><enum>(c)</enum><header>Carbon capture <p> requirement for certain fuels</header> <p> <paragraph id="idB8BC1138780147E19CD00BEEA90E2AA5"><enum>(1)</enum><header>In <p> general</header><text>Subsection (d) of section 6426, as amended by subsection <p> (a), is amended by redesignating paragraph (4) as paragraph (5) and by <p> inserting after paragraph (3) the following new paragraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id952F7E5EAF33498AA5A6549A5432EF4C" reported-display-style="italic" style="OLC"> <p> <paragraph id="idDCA83DD036434F1999A85FC0B34FFECD"><enum>(4)</enum><header>Carbon capture <p> requirement</header> <p> <subparagraph id="id31D2EE89FB6A4BF795DE5F39E79D1D16"><enum>(A)</enum><header>In <p> general</header><text>The requirements of this paragraph are met if the fuel is <p> certified, under such procedures as required by the Secretary, as having been <p> derived from coal produced at a gasification facility which separates and <p> sequesters not less than the applicable percentage of such facility's total <p> carbon dioxide emissions.</text> <p> </subparagraph><subparagraph id="id30D5B7C173FC43DC9278076F479E2238"><enum>(B)</enum><header>Applicable <p> percentage</header><text>For purposes of subparagraph (A), the applicable <p> percentage is—</text> <p> <clause id="id01D0BFD3950C4870AA835E2F3D32D19A"><enum>(i)</enum><text>50 percent in the case of <p> fuel produced after September 30, 2009, and on or before December 30, 2009, <p> and</text> <p> </clause><clause id="idBB7AC74F15E84BA3A53BE3A80614E98E"><enum>(ii)</enum><text>75 percent in the case <p> of fuel produced after December 30, <p> 2009.</text> <p> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph id="id550659311C4E47DF8A9E504386E40233"><enum>(2)</enum><header>Conforming <p> amendment</header><text>Subparagraph (E) of section 6426(d)(2) is amended by <p> inserting <quote>which meets the requirements of paragraph (4) and which <p> is</quote> after <quote>any liquid fuel</quote>.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idC367692EEDC84E5587388CEAD1552F7B"><enum>(d)</enum><header>Effective <p> date</header><text>The amendments made by this section shall apply to fuel sold <p> or used after the date of the enactment of this Act.</text> <p> </subsection></section><section id="id28E82AC4F03540D4B7192D47AF6C089B"><enum>205.</enum><header>Credit for new <p> qualified plug-in electric drive motor vehicles</header> <p> <subsection id="idFF6572DDB9FE41BD943FE79B97ED3142"><enum>(a)</enum><header>Plug-in electric drive <p> motor vehicle credit</header><text>Subpart B of part IV of subchapter A of <p> chapter 1 (relating to other credits) is amended by adding at the end the <p> following new section:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idD9F4B5C3C5874F40AC404FE4040AC135" reported-display-style="italic" style="OLC"> <p> <section id="id32D20DF41413482BA82CBF58B351C395"><enum>30D.</enum><header>New qualified plug-in <p> electric drive motor vehicles</header> <p> <subsection id="idBF98C8C37B514801BDE831A7A2CE3134"><enum>(a)</enum><header>Allowance of <p> credit</header> <p> <paragraph id="id2D498035F0F54F798186EB69AB2B1F4B"><enum>(1)</enum><header>In <p> general</header><text>There shall be allowed as a credit against the tax <p> imposed by this chapter for the taxable year an amount equal to the applicable <p> amount with respect to each new qualified plug-in electric drive motor vehicle <p> placed in service by the taxpayer during the taxable year.</text> <p> </paragraph><paragraph id="idF1D83508C65B4DA49845DF9E6149CEE6"><enum>(2)</enum><header>Applicable <p> amount</header><text>For purposes of paragraph (1), the applicable amount is <p> sum of—</text> <p> <subparagraph id="id9CAB2FFEB6154DBD916C49590C79D191"><enum>(A)</enum><text>$2,500, plus</text> <p> </subparagraph><subparagraph id="id5798561F45AF433C8EAA4642EF93262E"><enum>(B)</enum><text>$417 for each kilowatt <p> hour of traction battery capacity in excess of 4 kilowatt hours.</text> <p> </subparagraph></paragraph></subsection><subsection id="id6CAD849BBA8D4B04AA6B33960735FFDC"><enum>(b)</enum><header>Limitations</header> <p> <paragraph id="idE57627C7609A428FB08086FC63E0A6F4"><enum>(1)</enum><header>Limitation based on <p> weight</header><text>The amount of the credit allowed under subsection (a) by <p> reason of subsection (a)(2) shall not exceed—</text> <p> <subparagraph id="idE9A125710D4746898CDB6951E178C992"><enum>(A)</enum><text>$7,500, in the case of <p> any new qualified plug-in electric drive motor vehicle with a gross vehicle <p> weight rating of not more than 10,000 pounds,</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF3E254D62EDB4DCBB7B020FE714DDFE9"><enum>(B)</enum><text display-inline="yes-display-inline">$10,000, in the case of any new qualified <p> plug-in electric drive motor vehicle with a gross vehicle weight rating of more <p> than 10,000 pounds but not more than 14,000 pounds,</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idE31886A373254242804217B38956C144"><enum>(C)</enum><text display-inline="yes-display-inline">$12,500, in the case of any new qualified <p> plug-in electric drive motor vehicle with a gross vehicle weight rating of more <p> than 14,000 pounds but not more than 26,000 pounds, and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id57EDD327897E4582BA6D0C041A016F82"><enum>(D)</enum><text display-inline="yes-display-inline">$15,000, in the case of any new qualified <p> plug-in electric drive motor vehicle with a gross vehicle weight rating of more <p> than 26,000 pounds.</text> <p> </subparagraph></paragraph><paragraph id="idD71343B3E9CB40AD9A1CB26FDF9DB689"><enum>(2)</enum><header>Limitation on number of <p> passenger vehicles and light trucks eligible for credit</header> <p> <subparagraph id="id70200E743C1B4C02AB5CD74AF1519A04"><enum>(A)</enum><header>In <p> general</header><text>In the case of a new qualified plug-in electric drive <p> motor vehicle sold during the phaseout period, only the applicable percentage <p> of the credit otherwise allowable under subsection (a) shall be allowed.</text> <p> </subparagraph><subparagraph id="id25C2E5D11F834BF4877A1C82352F90E7"><enum>(B)</enum><header>Phaseout <p> period</header><text>For purposes of this subsection, the phaseout period is <p> the period beginning with the second calendar quarter following the calendar <p> quarter which includes the first date on which the total number of such new <p> qualified plug-in electric drive motor vehicles sold for use in the United <p> States after December 31, 2008, is at least 250,000.</text> <p> </subparagraph><subparagraph id="idBD5D81AE42E34BABBE320D21B81A571F"><enum>(C)</enum><header>Applicable <p> percentage</header><text display-inline="yes-display-inline">For purposes of <p> subparagraph (A), the applicable percentage is—</text> <p> <clause id="id01D0434CC4004898B3E7FD98CBFB3FFB"><enum>(i)</enum><text>50 percent for the first <p> 2 calendar quarters of the phaseout period,</text> <p> </clause><clause id="id4C368922C55B4E66A65993230F2DE571"><enum>(ii)</enum><text>25 percent for the 3d <p> and 4th calendar quarters of the phaseout period, and</text> <p> </clause><clause id="idE402C9D0F1024DA18725494CF25D4CF4"><enum>(iii)</enum><text>0 percent for each <p> calendar quarter thereafter.</text> <p> </clause></subparagraph><subparagraph id="id8DF7E014362C49FAB38327E5BC4F17D3"><enum>(D)</enum><header>Controlled <p> groups</header><text>Rules similar to the rules of section 30B(f)(4) shall <p> apply for purposes of this subsection.</text> <p> </subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idD014B4CB584049E7848593151B3CD406"><enum>(c)</enum><header>New qualified plug-in <p> electric drive motor vehicle</header><text display-inline="yes-display-inline">For purposes of this section, the term <p> <term>new qualified plug-in electric drive motor vehicle</term> means a motor <p> vehicle—</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="id934819BCCDA2491891F549AA4062F0BA"><enum>(1)</enum><text display-inline="yes-display-inline">which draws propulsion using a traction <p> battery with at least 4 kilowatt hours of capacity,</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idD0E8E2ED193242F48DE19BF91B73DC00"><enum>(2)</enum><text display-inline="yes-display-inline">which uses an offboard source of energy to <p> recharge such battery,</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6F401980FAEC4E709324C032FED838AC"><enum>(3)</enum><text display-inline="yes-display-inline">which, in the case of a passenger vehicle <p> or light truck which has a gross vehicle weight rating of not more than 8,500 <p> pounds, has received a certificate of conformity under the Clean Air Act and <p> meets or exceeds the equivalent qualifying California low emission vehicle <p> standard under section 243(e)(2) of the Clean Air Act for that make and model <p> year, and</text> <p> <subparagraph id="ID29a32d0fb8ce44d286946ad13071151d"><enum>(A)</enum><text>in the case of a vehicle <p> having a gross vehicle weight rating of 6,000 pounds or less, the Bin 5 Tier II <p> emission standard established in regulations prescribed by the Administrator of <p> the Environmental Protection Agency under section 202(i) of the Clean Air Act <p> for that make and model year vehicle, and</text> <p> </subparagraph><subparagraph id="IDfeb5bdae62b8419a8b98185356aad1bc"><enum>(B)</enum><text>in the case of a vehicle <p> having a gross vehicle weight rating of more than 6,000 pounds but not more <p> than 8,500 pounds, the Bin 8 Tier II emission standard which is so <p> established,</text> <p> </subparagraph></paragraph><paragraph id="id4FDE46F77EC54FD1A8436823D0D3B6FB"><enum>(4)</enum><text>the original use of which <p> commences with the taxpayer,</text> <p> </paragraph><paragraph id="idB478F1FDB3544EA3B14A07E9D90C5C80"><enum>(5)</enum><text>which is acquired for use <p> or lease by the taxpayer and not for resale, and</text> <p> </paragraph><paragraph id="idBBD1E76847964C3BAA686CFF9992B6DE"><enum>(6)</enum><text>which is made by a <p> manufacturer.</text> <p> </paragraph></subsection><subsection id="idEA5A2CE2AD574E008F21C15B116DB223"><enum>(d)</enum><header>Application with other <p> credits</header> <p> <paragraph id="id620B614F30A04F65B022FC0DE2FBC6DC"><enum>(1)</enum><header>Business credit treated <p> as part of general business credit</header><text display-inline="yes-display-inline">So much of the credit which would be <p> allowed under subsection (a) for any taxable year (determined without regard to <p> this subsection) that is attributable to property of a character subject to an <p> allowance for depreciation shall be treated as a credit listed in section 38(b) <p> for such taxable year (and not allowed under subsection (a)).</text> <p> </paragraph><paragraph id="idB6215C8524BC42F7BD43D4DAD1E33D46"><enum>(2)</enum><header>Personal <p> credit</header> <p> <subparagraph id="idC472152B5FC0482D95CF390851BAF752"><enum>(A)</enum><header>In <p> general</header><text>For purposes of this title, the credit allowed under <p> subsection (a) for any taxable year (determined after application of paragraph <p> (1)) shall be treated as a credit allowable under subpart A for such taxable <p> year.</text> <p> </subparagraph><subparagraph commented="no" id="id7CFC55B1CC0D4E929C021C45FED34667"><enum>(B)</enum><header>Limitation based on <p> amount of tax</header><text>In the case of a taxable year to which section <p> 26(a)(2) does not apply, the credit allowed under subsection (a) for any <p> taxable year (determined after application of paragraph (1)) shall not exceed <p> the excess of—</text> <p> <clause commented="no" id="idEA45B63BECEB4BB1A394C13EB588CABD"><enum>(i)</enum><text>the sum of the regular <p> tax liability (as defined in section 26(b)) plus the tax imposed by section 55, <p> over</text> <p> </clause><clause commented="no" id="id3C185487BB1649CDB7FAF9EC0E10D613"><enum>(ii)</enum><text>the sum of the credits <p> allowable under subpart A (other than this section and sections 23 and 25D) and <p> section 27 for the taxable year.</text> <p> </clause></subparagraph></paragraph></subsection><subsection id="id2BB8D4E00ABD41A7A7914DC2BCD33222"><enum>(e)</enum><header>Other definitions and <p> special rules</header><text>For purposes of this section—</text> <p> <paragraph id="id9A48CB296BCD47E1A78AF32EC8020929"><enum>(1)</enum><header>Motor <p> vehicle</header><text>The term <term>motor vehicle</term> has the meaning given <p> such term by section 30(c)(2).</text> <p> </paragraph><paragraph id="idE00134AF25FA42B4BF86AE79D90CA800"><enum>(2)</enum><header>Other <p> terms</header><text>The terms <term>passenger automobile</term>, <term>light <p> truck</term>, and <term>manufacturer</term> have the meanings given such terms <p> in regulations prescribed by the Administrator of the Environmental Protection <p> Agency for purposes of the administration of title II of the Clean Air Act (42 <p> U.S.C. 7521 et seq.).</text> <p> </paragraph><paragraph id="id4B873C2CF00A40ADA516C7A97A4AC049"><enum>(3)</enum><header>Traction battery <p> capacity</header><text>Traction battery capacity shall be measured in kilowatt <p> hours from a 100 percent state of charge to a zero percent state of <p> charge.</text> <p> </paragraph><paragraph id="idC4C444B3C4234912A7231F9421EA648D"><enum>(4)</enum><header>Reduction in <p> basis</header><text>For purposes of this subtitle, the basis of any property <p> for which a credit is allowable under subsection (a) shall be reduced by the <p> amount of such credit so allowed.</text> <p> </paragraph><paragraph id="id1E950DF0B1D84F3AA1CAF7BA51ABBB81"><enum>(5)</enum><header>No double <p> benefit</header><text>The amount of any deduction or other credit allowable <p> under this chapter for a new qualified plug-in electric drive motor vehicle <p> shall be reduced by the amount of credit allowed under subsection (a) for such <p> vehicle for the taxable year.</text> <p> </paragraph><paragraph id="idE34FBC2E678C401A8C4716FB1AD69E30"><enum>(6)</enum><header>Property used by <p> tax-exempt entity</header><text>In the case of a vehicle the use of which is <p> described in paragraph (3) or (4) of section 50(b) and which is not subject to <p> a lease, the person who sold such vehicle to the person or entity using such <p> vehicle shall be treated as the taxpayer that placed such vehicle in service, <p> but only if such person clearly discloses to such person or entity in a <p> document the amount of any credit allowable under subsection (a) with respect <p> to such vehicle (determined without regard to subsection (b)(2)).</text> <p> </paragraph><paragraph id="id14FF46EE74AD4235AA2D2A20878DDBEA"><enum>(7)</enum><header>Property used outside <p> United States, etc., not qualified</header><text>No credit shall be allowable <p> under subsection (a) with respect to any property referred to in section <p> 50(b)(1) or with respect to the portion of the cost of any property taken into <p> account under section 179.</text> <p> </paragraph><paragraph id="id98D6CD688C874630866289F90F1646AB"><enum>(8)</enum><header>Recapture</header><text>The <p> Secretary shall, by regulations, provide for recapturing the benefit of any <p> credit allowable under subsection (a) with respect to any property which ceases <p> to be property eligible for such credit (including recapture in the case of a <p> lease period of less than the economic life of a vehicle).</text> <p> </paragraph><paragraph id="idC61608DAF9624C09A474B1C2EF093727"><enum>(9)</enum><header>Election to not take <p> credit</header><text>No credit shall be allowed under subsection (a) for any <p> vehicle if the taxpayer elects not to have this section apply to such <p> vehicle.</text> <p> </paragraph><paragraph id="id7D754B00412649D0A6ADEAE0EF1141E5"><enum>(10)</enum><header>Interaction with air <p> quality and motor vehicle safety standards</header><text>Unless otherwise <p> provided in this section, a motor vehicle shall not be considered eligible for <p> a credit under this section unless such vehicle is in compliance with—</text> <p> <subparagraph id="id43E005F394D1413EB42BA0D76E5CFDBC"><enum>(A)</enum><text>the applicable provisions <p> of the Clean Air Act for the applicable make and model year of the vehicle (or <p> applicable air quality provisions of State law in the case of a State which has <p> adopted such provision under a waiver under section 209(b) of the Clean Air <p> Act), and</text> <p> </subparagraph><subparagraph id="id7070A278D7244AB79D9202D4FF616872"><enum>(B)</enum><text>the motor vehicle safety <p> provisions of sections 30101 through 30169 of title 49, United States <p> Code.</text> <p> </subparagraph></paragraph></subsection><subsection id="id77079655EDCF493AB44DE5325EE4ECAA"><enum>(f)</enum><header>Regulations</header> <p> <paragraph id="id6955E0A31D0A486F9E67B8BEC834E64F"><enum>(1)</enum><header>In <p> general</header><text>Except as provided in paragraph (2), the Secretary shall <p> promulgate such regulations as necessary to carry out the provisions of this <p> section.</text> <p> </paragraph><paragraph id="id90F9CACC709F4B8EB27E7E2CF1080E15"><enum>(2)</enum><header>Coordination in <p> prescription of certain regulations</header><text>The Secretary of the <p> Treasury, in coordination with the Secretary of Transportation and the <p> Administrator of the Environmental Protection Agency, shall prescribe such <p> regulations as necessary to determine whether a motor vehicle meets the <p> requirements to be eligible for a credit under this section.</text> <p> </paragraph></subsection><subsection id="idA88EBC5034A74C24B2238B5640062601"><enum>(g)</enum><header>Termination</header><text>This <p> section shall not apply to property purchased after December 31, <p> 2014.</text> <p> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection display-inline="no-display-inline" id="idB113A8144B9A420C9ABB1EAC04CD0AD6"><enum>(b)</enum><header>Coordination with <p> alternative motor vehicle credit</header><text>Section 30B(d)(3) is amended by <p> adding at the end the following new subparagraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id0262506E8A044B3B9D7D73BFB200408A" reported-display-style="italic" style="OLC"> <p> <subparagraph id="idBE03E4AD2BF043818D6ED64C55C85081"><enum>(D)</enum><header>Exclusion of plug-in <p> vehicles</header><text>Any vehicle with respect to which a credit is allowable <p> under section 30D (determined without regard to subsection (d) thereof) shall <p> not be taken into account under this <p> section.</text> <p> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="id07EF45C150DB423D968E47AAFC912E3E"><enum>(c)</enum><header>Credit made part of <p> general business credit</header><text>Section 38(b), as amended by this Act, is <p> amended by striking <quote>plus</quote> at the end of paragraph (33), by <p> striking the period at the end of paragraph (34) and inserting <p> <quote>plus</quote>, and by adding at the end the following new <p> paragraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idE669F97EF96C458297C1EFB21D6A2217" reported-display-style="italic" style="OLC"> <p> <paragraph id="id6A755454E65A436F9E52164A42F2AF03"><enum>(35)</enum><text>the portion of the new <p> qualified plug-in electric drive motor vehicle credit to which section <p> 30D(d)(1) <p> applies.</text> <p> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection display-inline="no-display-inline" id="idB282A9576079454996D433EF43A9DF51"><enum>(d)</enum><header>Conforming <p> amendments</header> <p> <paragraph commented="no" id="id4F0C114A44A14D7EA50630024F3967CA"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id3DE4F9EFCADC469B8B68B28D24E60ED0"><enum>(A)</enum><text>Section 24(b)(3)(B), as <p> amended by section 106, is amended by striking <quote>and 25D</quote> and <p> inserting <quote>25D, and 30D</quote>.</text> <p> </subparagraph><subparagraph changed="added" commented="no" id="id295504D2C2A349BD876B9BC22BED279E" indent="up1" reported-display-style="italic"><enum>(B)</enum><text>Section 25(e)(1)(C)(ii) <p> is amended by inserting <quote>30D,</quote> after <quote>25D,</quote>.</text> <p> </subparagraph><subparagraph changed="added" commented="no" id="idF77B3BAFA41E4526A1DD24A2784C1F09" indent="up1" reported-display-style="italic"><enum>(C)</enum><text>Section 25B(g)(2), as <p> amended by section 106, is amended by striking <quote>and 25D</quote> and <p> inserting <quote>, 25D, and 30D</quote>.</text> <p> </subparagraph><subparagraph changed="added" commented="no" id="id74C7EA6DB6EA430583782F1CDDCCFAAE" indent="up1" reported-display-style="italic"><enum>(D)</enum><text>Section 26(a)(1), as <p> amended by section 106, is amended by striking <quote>and 25D</quote> and <p> inserting <quote>25D, and 30D</quote>.</text> <p> </subparagraph><subparagraph changed="added" commented="no" id="idCF29C8255568442B8E69A97D1DB70B2B" indent="up1" reported-display-style="italic"><enum>(E)</enum><text>Section 1400C(d)(2) is <p> amended by striking <quote>and 25D</quote> and inserting <quote>25D, and <p> 30D</quote>.</text> <p> </subparagraph></paragraph><paragraph id="id8C31BC0C909B4C02AAD741A64768F1FB"><enum>(2)</enum><text>Section 1016(a) is <p> amended by striking <quote>and</quote> at the end of paragraph (35), by <p> striking the period at the end of paragraph (36) and inserting <quote>, <p> and</quote>, and by adding at the end the following new paragraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id21C2B520FAFD4B39AF3A60A730E5FC71" reported-display-style="italic" style="OLC"> <p> <paragraph id="id766C73EE67494274B0ACBC1748449E0D"><enum>(37)</enum><text>to the extent provided <p> in section <p> 30D(e)(4).</text> <p> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph id="idFD3CBF988FFE4D54B71C632C6BBB7C4F"><enum>(3)</enum><text>Section 6501(m) is <p> amended by inserting <quote>30D(e)(9),</quote> after <p> <quote>30C(e)(5),</quote>.</text> <p> </paragraph><paragraph id="id5627F6E12E4741BB8E6E0BF1A883AD84"><enum>(4)</enum><text>The table of sections for <p> subpart B of part IV of subchapter A of chapter 1 is amended by adding at the <p> end the following new item:</text> <p> <quoted-block changed="added" id="id96CC431C46E247A3BE60CFB139A6295F" reported-display-style="italic" style="OLC"> <p> <toc changed="added" reported-display-style="italic"> <p> <toc-entry level="section">Sec. 30D. New qualified plug-in electric drive <p> motor <p> vehicles.</toc-entry> <p> </toc> <p> <after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph></subsection><subsection id="id19AB426F95FB423D90FB0EE27EA47914"><enum>(e)</enum><header>Effective <p> date</header><text>The amendments made by this section shall apply to taxable <p> years beginning after December 31, 2008.</text> <p> </subsection><subsection id="id3B51D36658474FC5AD6B120ADB824252"><enum>(f)</enum><header>Application of EGTRRA <p> sunset</header><text>The amendment made by subsection (d)(1)(A) shall be <p> subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of <p> 2001 in the same manner as the provision of such Act to which such amendment <p> relates.</text> <p> </subsection></section><section commented="no" display-inline="no-display-inline" id="HFB0E61DCA7E04BF8A124B4B3074333A2" section-type="subsequent-section"><enum>206.</enum><header display-inline="yes-display-inline">Exclusion from heavy truck tax for idling <p> reduction units and advanced insulation</header> <p> <subsection commented="no" display-inline="no-display-inline" id="H095C74B572874823820260D3435320B1"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 4053 is amended by adding at the <p> end the following new paragraphs:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="HA9E61EB34C7E4471ABB02B10F4300025" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" display-inline="no-display-inline" id="HE678079B89B7408C8FD15DD9003FDC00"><enum>(9)</enum><header display-inline="yes-display-inline">Idling reduction device</header><text display-inline="yes-display-inline">Any device or system of devices <p> which—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="H57F2676CE3944348AE38E4C83DC34C27"><enum>(A)</enum><text display-inline="yes-display-inline">is designed to provide to a vehicle those <p> services (such as heat, air conditioning, or electricity) that would otherwise <p> require the operation of the main drive engine while the vehicle is temporarily <p> parked or remains stationary using one or more devices affixed to a tractor, <p> and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7BA2DAA30FC74E80AB27D76FAD991F9F"><enum>(B)</enum><text display-inline="yes-display-inline">is determined by the Administrator of the <p> Environmental Protection Agency, in consultation with the Secretary of Energy <p> and the Secretary of Transportation, to reduce idling of such vehicle at a <p> motor vehicle rest stop or other location where such vehicles are temporarily <p> parked or remain stationary.</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA685817D1AFB4230A3586D1879C2D65F"><enum>(10)</enum><header display-inline="yes-display-inline">Advanced insulation</header><text display-inline="yes-display-inline">Any insulation that has an R value of not <p> less than R35 per <p> inch.</text> <p> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H039BC7343AE247BCAC9B19375499CE89"><enum>(b)</enum><header display-inline="yes-display-inline">Effective <p> date</header><text display-inline="yes-display-inline">The amendment made by <p> this section shall apply to sales or installations after the date of the <p> enactment of this Act.</text> <p> </subsection></section><section commented="no" display-inline="no-display-inline" id="H4C36D41F64DA43129E0451276C3C50B4" section-type="subsequent-section"><enum>207.</enum><header display-inline="yes-display-inline">Alternative fuel vehicle refueling property <p> credit</header> <p> <subsection commented="no" display-inline="no-display-inline" id="H464D81D53DB74B318D24EF90D4CFCA86"><enum>(a)</enum><header display-inline="yes-display-inline">Extension of credit</header><text display-inline="yes-display-inline">Paragraph (2) of section 30C(g) is amended <p> by striking <quote>December 31, 2009</quote> and inserting <quote>December 31, <p> 2010</quote>.</text> <p> </subsection><subsection commented="no" id="idA15002ECB7444E0D82EB37D28332FD6B"><enum>(b)</enum><header>Inclusion of <p> electricity as a clean-burning fuel</header><text>Section 30C(c)(2) is amended <p> by adding at the end the following new subparagraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id0FAB814D45814847869F922FDEDCE12B" reported-display-style="italic" style="OLC"> <p> <subparagraph commented="no" id="idE79A7FE68D7B428FB4B6ECD2374221B5"><enum>(C)</enum><text>Electricity.</text> <p> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="HBFA89197334641C5B336DAF4A0776E36"><enum>(c)</enum><header display-inline="yes-display-inline">Effective <p> date</header><text display-inline="yes-display-inline">The amendments made by <p> this section shall apply to property placed in service after the date of the <p> enactment of this Act, in taxable years ending after such date.</text> <p> </subsection></section><section commented="no" display-inline="no-display-inline" id="id10B7A96C6B064F4398E46B42A3D6D53D" section-type="subsequent-section"><enum>208.</enum><header display-inline="yes-display-inline">Certain income and gains relating to <p> alcohol fuels and mixtures, biodiesel fuels and mixtures, and alternative fuels <p> and mixtures treated as qualifying income for publicly traded <p> partnerships</header> <p> <subsection commented="no" display-inline="no-display-inline" id="IDcc24d87a73c74ce3bea7e1c854b9f332"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subparagraph (E) of section 7704(d)(1), as <p> amended by this Act, is amended by striking <quote>or industrial source carbon <p> dioxide</quote> and inserting “, industrial source carbon dioxide, or the <p> transportation or storage of any fuel described in subsection (b), (c), (d), or <p> (e) of section 6426, or any alcohol fuel defined in section 6426(b)(4)(A) or <p> any biodiesel fuel as defined in section 40A(d)(1)” after <p> <quote>timber)</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="idDBE3309B5B73415D80E1C96357BB28A3"><enum>(b)</enum><header display-inline="yes-display-inline">Effective <p> date</header><text display-inline="yes-display-inline">The amendment made by <p> this section shall take effect on the date of the enactment of this Act, in <p> taxable years ending after such date.</text> <p> </subsection></section><section id="id4B56FDAA8A8E473194A471E49BC90066"><enum>209.</enum><header>Extension and <p> modification of election to expense certain refineries</header> <p> <subsection id="id21FDDE38302141CDAE126EF74C4F8BBF"><enum>(a)</enum><header>Extension</header><text>Paragraph <p> (1) of section 179C(c) (relating to qualified refinery property) is <p> amended—</text> <p> <paragraph id="idCE8407EC5913404E91351EF84EE1C9D4"><enum>(1)</enum><text>by striking <p> <quote>January 1, 2012</quote> in subparagraph (B) and inserting <quote>January <p> 1, 2014</quote>, and</text> <p> </paragraph><paragraph id="id933E81D4A1D24F0B8DA2189911248F64"><enum>(2)</enum><text>by striking <p> <quote>January 1, 2008</quote> each place it appears in subparagraph (F) and <p> inserting <quote>January 1, 2010</quote>.</text> <p> </paragraph></subsection><subsection id="idC417BA8652914734BFFB789237B36664"><enum>(b)</enum><header>Inclusion of fuel <p> derived from shale and tar sands</header> <p> <paragraph id="id372F388815DB4BD0AF3AA0B087CCBE68"><enum>(1)</enum><header>In <p> general</header><text>Subsection (d) of section 179C is amended by inserting <p> <quote>, or directly from shale or tar sands</quote> after <quote>(as defined <p> in section 45K(c))</quote>.</text> <p> </paragraph><paragraph id="id92624CE8C45648B9A12DD02402B6257D"><enum>(2)</enum><header>Conforming <p> amendment</header><text>Paragraph (2) of section 179C(e) is amended by <p> inserting <quote>shale, tar sands, or</quote> before <quote>qualified <p> fuels</quote>.</text> <p> </paragraph></subsection><subsection id="id6E38CF3F86E74FF897987F07C7C8F978"><enum>(c)</enum><header>Effective <p> date</header><text>The amendments made by this section shall apply to property <p> placed in service after the date of the enactment of this Act.</text> <p> </subsection></section><section commented="no" display-inline="no-display-inline" id="id8EA94D2C1DD745F5BDBAD8AA4555C7F1"><enum>210.</enum><header>Extension of <p> suspension of taxable income limit on percentage depletion for oil and natural <p> gas produced from marginal properties</header><text display-inline="no-display-inline">Subparagraph (H) of section 613A(c)(6) <p> (relating to oil and gas produced from marginal properties) is amended by <p> striking <quote>for any taxable year</quote> and all that follows and <p> inserting</text> <p> <quoted-block changed="added" display-inline="yes-display-inline" id="id405D00F0EA3542B7AA548CFAEBC136E8" reported-display-style="italic" style="OLC"> <p> <text>for any taxable <p> year—</text><clause commented="no" display-inline="no-display-inline" id="id625590ED5F944EDAB838A873308611D4"><enum>(i)</enum><text display-inline="yes-display-inline">beginning after December 31, 1997, and <p> before January 1, 2008, or</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="idA3C7DD95D7AE4EE685A04747FFAFA0DB"><enum>(ii)</enum><text display-inline="yes-display-inline">beginning after December 31, 2008, and <p> before January 1, <p> 2010.</text> <p> </clause><after-quoted-block>.</after-quoted-block></quoted-block> <p> </section><section commented="no" display-inline="no-display-inline" id="HC7337FD74ACF48F2B0B61BFAD743106" section-type="subsequent-section"><enum>211.</enum><header display-inline="yes-display-inline">Transportation fringe benefit to bicycle <p> commuters</header> <p> <subsection commented="no" display-inline="no-display-inline" id="H71D8AC8C985149F5A9FF463F29859ED"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (1) of section 132(f) is amended <p> by adding at the end the following:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H8EA0FC0300BA4B4FB71F7D56B44BF7AE" reported-display-style="italic" style="OLC"> <p> <subparagraph commented="no" display-inline="no-display-inline" id="H8EFFD45F2A0B4C0EB848EF70B975B6F6"><enum>(D)</enum><text display-inline="yes-display-inline">Any qualified bicycle commuting <p> reimbursement.</text> <p> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H24A7801D526B4E7F8EA4CE9341FC79B3"><enum>(b)</enum><header display-inline="yes-display-inline">Limitation on exclusion</header><text display-inline="yes-display-inline">Paragraph (2) of section 132(f) is amended <p> by striking <quote>and</quote> at the end of subparagraph (A), by striking the <p> period at the end of subparagraph (B) and inserting <quote>, and</quote>, and <p> by adding at the end the following new subparagraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="HE9D1C660871A4870A29216F3A9980079" reported-display-style="italic" style="OLC"> <p> <subparagraph commented="no" display-inline="no-display-inline" id="H995E2AFB998444F7B865E8BFF33D200"><enum>(C)</enum><text display-inline="yes-display-inline">the applicable annual limitation in the <p> case of any qualified bicycle commuting <p> reimbursement.</text> <p> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H164E6054677B4CC59FDA62D083E37537"><enum>(c)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">Paragraph (5) of section 132(f) is amended <p> by adding at the end the following:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H4B428A588ADD460D9361FDE310D0D8B6" reported-display-style="italic" style="OLC"> <p> <subparagraph commented="no" display-inline="no-display-inline" id="HBFA643C380D44D0E9F68601FC938444F"><enum>(F)</enum><header display-inline="yes-display-inline">Definitions related to bicycle commuting <p> reimbursement</header> <p> <clause commented="no" display-inline="no-display-inline" id="HAB08DA8301EF470B9DAB9EFF727D04E1"><enum>(i)</enum><header display-inline="yes-display-inline">Qualified bicycle commuting <p> reimbursement</header><text display-inline="yes-display-inline">The term <p> <term>qualified bicycle commuting reimbursement</term> means, with respect to <p> any calendar year, any employer reimbursement during the 15-month period <p> beginning with the first day of such calendar year for reasonable expenses <p> incurred by the employee during such calendar year for the purchase of a <p> bicycle and bicycle improvements, repair, and storage, if such bicycle is <p> regularly used for travel between the employee’s residence and place of <p> employment.</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="HF9C8D8F2078841CCA6A9C60351936599"><enum>(ii)</enum><header display-inline="yes-display-inline">Applicable annual limitation</header><text display-inline="yes-display-inline">The term <term>applicable annual <p> limitation</term> means, with respect to any employee for any calendar year, <p> the product of $20 multiplied by the number of qualified bicycle commuting <p> months during such year.</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="H2F7135934DC54658B6BBDE7FC800FBD8"><enum>(iii)</enum><header display-inline="yes-display-inline">Qualified bicycle commuting <p> month</header><text display-inline="yes-display-inline">The term <p> <term>qualified bicycle commuting month</term> means, with respect to any <p> employee, any month during which such employee—</text> <p> <subclause commented="no" display-inline="no-display-inline" id="HEA19C7DF194947279CF9866D3C729361"><enum>(I)</enum><text display-inline="yes-display-inline">regularly uses the bicycle for a <p> substantial portion of the travel between the employee’s residence and place of <p> employment, and</text> <p> </subclause><subclause commented="no" display-inline="no-display-inline" id="H3B4B5ED432464748A5C80800C6D0EF81"><enum>(II)</enum><text display-inline="yes-display-inline">does not receive any benefit described in <p> subparagraph (A), (B), or (C) of paragraph <p> (1).</text> <p> </subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H9A8F9E5660174B47827B622066FE008E"><enum>(d)</enum><header display-inline="yes-display-inline">Constructive receipt of <p> benefit</header><text display-inline="yes-display-inline">Paragraph (4) of <p> section 132(f) is amended by inserting <quote>(other than a qualified bicycle <p> commuting reimbursement)</quote> after <quote>qualified transportation <p> fringe</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H6E7E59A02BDB4DDEA2005BC13CD5963F"><enum>(e)</enum><header display-inline="yes-display-inline">Effective <p> date</header><text display-inline="yes-display-inline">The amendments made by <p> this section shall apply to taxable years beginning after December 31, <p> 2008.</text> <p> </subsection></section><enum>III</enum><header display-inline="yes-display-inline">Energy conservation and efficiency <p> provisions</header> <p> <section commented="no" display-inline="no-display-inline" id="H80762FAEA6B0411ABB9330954824B7F" section-type="subsequent-section"><enum>301.</enum><header display-inline="yes-display-inline">Qualified energy conservation <p> bonds</header> <p> <subsection commented="no" display-inline="no-display-inline" id="H366B4F2CDAC44C2780F395A5DABE3BE3"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subpart I of part IV of subchapter A of <p> chapter 1, as amended by section 107, is amended by adding at the end the <p> following new section:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H84E4FF4893D849EB890056C916790067" reported-display-style="italic" style="OLC"> <p> <section commented="no" display-inline="no-display-inline" id="H85287BA9F6C54044A49405E9007B70A4" section-type="subsequent-section"><enum>54D.</enum><header display-inline="yes-display-inline">Qualified energy conservation <p> bonds</header> <p> <subsection commented="no" display-inline="no-display-inline" id="H89184009FECE48419F19215216ECD1E"><enum>(a)</enum><header display-inline="yes-display-inline">Qualified energy conservation <p> bond</header><text display-inline="yes-display-inline">For purposes of this <p> subchapter, the term <term>qualified energy conservation bond</term> means any <p> bond issued as part of an issue if—</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="H8494B31DDA894D339CD8D86D93C1C8CF"><enum>(1)</enum><text display-inline="yes-display-inline">100 percent of the available project <p> proceeds of such issue are to be used for one or more qualified conservation <p> purposes,</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H708D321609D24FEC97B66900FA19AF61"><enum>(2)</enum><text display-inline="yes-display-inline">the bond is issued by a State or local <p> government, and</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H31CA2F97BCC744C68412F2E331919106"><enum>(3)</enum><text display-inline="yes-display-inline">the issuer designates such bond for <p> purposes of this section.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H8B7E22A52A8941FF86982D396C23E2FA"><enum>(b)</enum><header display-inline="yes-display-inline">Reduced credit amount</header><text display-inline="yes-display-inline">The annual credit determined under section <p> 54A(b) with respect to any qualified energy conservation bond shall be 70 <p> percent of the amount so determined without regard to this subsection.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="HEE478747B17E4CEE8F0003B32FAD0685"><enum>(c)</enum><header display-inline="yes-display-inline">Limitation on amount of bonds <p> designated</header><text display-inline="yes-display-inline">The maximum <p> aggregate face amount of bonds which may be designated under subsection (a) by <p> any issuer shall not exceed the limitation amount allocated to such issuer <p> under subsection (e).</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H446046B19D6C40C08DF9B05E21FF7274"><enum>(d)</enum><header display-inline="yes-display-inline">National limitation on amount of bonds <p> designated</header><text display-inline="yes-display-inline">There is a <p> national qualified energy conservation bond limitation of $800,000,000.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H694DE299D4AD43DAB8AF563C4E10C7A8"><enum>(e)</enum><header display-inline="yes-display-inline">Allocations</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="H6303F183B8FA432A9D1F00D061113FB7"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The limitation applicable under subsection <p> (d) shall be allocated by the Secretary among the States in proportion to the <p> population of the States.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB61F28231DBC45AC9448487F0065965B"><enum>(2)</enum><header display-inline="yes-display-inline">Allocations to largest local <p> governments</header> <p> <subparagraph commented="no" display-inline="no-display-inline" id="HA171DE4961434D3A83894D4E279D8503"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In the case of any State in which there is <p> a large local government, each such local government shall be allocated a <p> portion of such State’s allocation which bears the same ratio to the State’s <p> allocation (determined without regard to this subparagraph) as the population <p> of such large local government bears to the population of such State.</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6D9E1F239D2641579FEC6B91075D9162"><enum>(B)</enum><header display-inline="yes-display-inline">Allocation of unused limitation to <p> State</header><text display-inline="yes-display-inline">The amount allocated <p> under this subsection to a large local government may be reallocated by such <p> local government to the State in which such local government is located.</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H256C0E22BB4E4D05B8635EB6241BE00"><enum>(C)</enum><header display-inline="yes-display-inline">Large local government</header><text display-inline="yes-display-inline">For purposes of this section, the term <p> <term>large local government</term> means any municipality or county if such <p> municipality or county has a population of 100,000 or more.</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4BEF0B18F35E43C0B6E9361100D726F7"><enum>(3)</enum><header display-inline="yes-display-inline">Allocation to issuers; restriction on <p> private activity bonds</header><text display-inline="yes-display-inline">Any <p> allocation under this subsection to a State or large local government shall be <p> allocated by such State or large local government to issuers within the State <p> in a manner that results in not less than 70 percent of the allocation to such <p> State or large local government being used to designate bonds which are not <p> private activity bonds.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HF8DA9102D8ED4C8A86800021D0664F92"><enum>(f)</enum><header display-inline="yes-display-inline">Qualified conservation <p> purpose</header><text display-inline="yes-display-inline">For purposes of this <p> section—</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="H04C628095E134DC8B5B8C3205EA00B8"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>qualified conservation <p> purpose</term> means any of the following:</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="H1E7D707CE7DE48CC8CC41F944533DC77"><enum>(A)</enum><text display-inline="yes-display-inline">Capital expenditures incurred for purposes <p> of—</text> <p> <clause commented="no" display-inline="no-display-inline" id="H29F93D7CA5D7477590BCE0D66817FA1C"><enum>(i)</enum><text display-inline="yes-display-inline">reducing energy consumption in <p> publicly-owned buildings by at least 20 percent,</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="HEE36442EFFE540B58CAC35E6AB2B6D8F"><enum>(ii)</enum><text display-inline="yes-display-inline">implementing green community <p> programs,</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="HFBAA2C29445C4B34B988AF93D6FEC000"><enum>(iii)</enum><text display-inline="yes-display-inline">rural development involving the production <p> of electricity from renewable energy resources, or</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="H4B2841014A134D618011B2A7F0B7A100"><enum>(iv)</enum><text display-inline="yes-display-inline">any qualified facility (as determined under <p> section 45(d) without regard to paragraphs (8) and (10) thereof and without <p> regard to any placed in service date).</text> <p> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCC1A91ED1DF94987AF39EA59B66F7BB"><enum>(B)</enum><text display-inline="yes-display-inline">Expenditures with respect to research <p> facilities, and research grants, to support research in—</text> <p> <clause commented="no" display-inline="no-display-inline" id="HCCB16B51EFC840A3B338347682CEAA64"><enum>(i)</enum><text display-inline="yes-display-inline">development of cellulosic ethanol or other <p> nonfossil fuels,</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="H24D96FFCB49043019C067C5213BDBF86"><enum>(ii)</enum><text display-inline="yes-display-inline">technologies for the capture and <p> sequestration of carbon dioxide produced through the use of fossil <p> fuels,</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="H584597BECF6047B28B1866FA32A80226"><enum>(iii)</enum><text display-inline="yes-display-inline">increasing the efficiency of existing <p> technologies for producing nonfossil fuels,</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="H3A3F4A15CBB9499A8006043BBB1899D3"><enum>(iv)</enum><text display-inline="yes-display-inline">automobile battery technologies and other <p> technologies to reduce fossil fuel consumption in transportation, or</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="H1AF35082D1AE4623B3A018D7570009CD"><enum>(v)</enum><text display-inline="yes-display-inline">technologies to reduce energy use in <p> buildings.</text> <p> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H15039A0AB1FA4D3F83767E725DD550AC"><enum>(C)</enum><text display-inline="yes-display-inline">Mass commuting facilities and related <p> facilities that reduce the consumption of energy, including expenditures to <p> reduce pollution from vehicles used for mass commuting.</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDF72D343679443F0BAC251F8DC964B1B"><enum>(D)</enum><text display-inline="yes-display-inline">Demonstration projects designed to promote <p> the commercialization of—</text> <p> <clause commented="no" display-inline="no-display-inline" id="HB02EBF58984A46E38DCD39F46489ABB9"><enum>(i)</enum><text display-inline="yes-display-inline">green building technology,</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="H0FE7E8F635CD42B9B1506140B4361EFF"><enum>(ii)</enum><text display-inline="yes-display-inline">conversion of agricultural waste for use in <p> the production of fuel or otherwise,</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="HFB0347AF0C5249E58847727F37FB43D5"><enum>(iii)</enum><text display-inline="yes-display-inline">advanced battery manufacturing <p> technologies,</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="H87D57173C02141F490988C94A180DAA5"><enum>(iv)</enum><text display-inline="yes-display-inline">technologies to reduce peak use of <p> electricity, or</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="H23FC4B6BF134457BB588B9FCFA2A2D"><enum>(v)</enum><text display-inline="yes-display-inline">technologies for the capture and <p> sequestration of carbon dioxide emitted from combusting fossil fuels in order <p> to produce electricity.</text> <p> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H82B3DDA0908747D5A62F845FF9645E63"><enum>(E)</enum><text display-inline="yes-display-inline">Public education campaigns to promote <p> energy efficiency.</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6FBE4571B8D24A3693E788C5A409E1A0"><enum>(2)</enum><header display-inline="yes-display-inline">Special rules for private activity <p> bonds</header><text display-inline="yes-display-inline">For purposes of this <p> section, in the case of any private activity bond, the term <term>qualified <p> conservation purposes</term> shall not include any expenditure which is not a <p> capital expenditure.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H92A2DC3A29074B00882411C5DF993761"><enum>(g)</enum><header display-inline="yes-display-inline">Population</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="H2CA13D0C475B45BC8094F618FA409E3E"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The population of any State or local <p> government shall be determined for purposes of this section as provided in <p> section 146(j) for the calendar year which includes the date of the enactment <p> of this section.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H41B7B2B6F97149A3A2A53E57162EDF8B"><enum>(2)</enum><header display-inline="yes-display-inline">Special rule for counties</header><text display-inline="yes-display-inline">In determining the population of any county <p> for purposes of this section, any population of such county which is taken into <p> account in determining the population of any municipality which is a large <p> local government shall not be taken into account in determining the population <p> of such county.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB6368F76FD8F4BC49F8670A080D35FE9"><enum>(h)</enum><header display-inline="yes-display-inline">Application to Indian tribal <p> governments</header><text display-inline="yes-display-inline">An Indian tribal <p> government shall be treated for purposes of this section in the same manner as <p> a large local government, except that—</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="HFA35678B9C3141B389BE5E7452AE346"><enum>(1)</enum><text display-inline="yes-display-inline">an Indian tribal government shall be <p> treated for purposes of subsection (e) as located within a State to the extent <p> of so much of the population of such government as resides within such State, <p> and</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H80063981B4EC4B5498BE9EA73B9530ED"><enum>(2)</enum><text display-inline="yes-display-inline">any bond issued by an Indian tribal <p> government shall be treated as a qualified energy conservation bond only if <p> issued as part of an issue the available project proceeds of which are used for <p> purposes for which such Indian tribal government could issue bonds to which <p> section 103(a) <p> applies.</text> <p> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H8FBDBE71CE3E4736ACC35ECE65BEC5D5"><enum>(b)</enum><header display-inline="yes-display-inline">Conforming amendments</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="H9C898EAC256A476D96F46841D7E66D8C"><enum>(1)</enum><text display-inline="yes-display-inline">Paragraph (1) of section 54A(d), as amended <p> by this Act, is amended to read as follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H55DD93BB35824961BA63AB09112FCC9C" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" display-inline="no-display-inline" id="HE08BE88BA86046E79FDBB677EDE61350"><enum>(1)</enum><header display-inline="yes-display-inline">Qualified tax credit bond</header><text display-inline="yes-display-inline">The term <term>qualified tax credit <p> bond</term> means—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id79BA94FFA8E24FBA9361E8B0B8615CF9"><enum>(A)</enum><text display-inline="yes-display-inline">a qualified forestry conservation <p> bond,</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H30E9F49A76874024005C00002DB2C582"><enum>(B)</enum><text display-inline="yes-display-inline">a new clean renewable energy bond, <p> or</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H11D8708E4AFE42A4BE7775271204DBB1"><enum>(C)</enum><text display-inline="yes-display-inline">a qualified energy conservation <p> bond,</text> <p> </subparagraph><continuation-text commented="no" continuation-text-level="paragraph">which <p> is part of an issue that meets requirements of paragraphs (2), (3), (4), (5), <p> and <p> (6).</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB064D25FEA114B35B57BEAC0022D900"><enum>(2)</enum><text display-inline="yes-display-inline">Subparagraph (C) of section 54A(d)(2), as <p> amended by this Act, is amended to read as follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H2A247C96C92D445496F4D9AB661104CC" reported-display-style="italic" style="OLC"> <p> <subparagraph commented="no" display-inline="no-display-inline" id="HD72F349C246C410B9193B1B9A5B1086B"><enum>(C)</enum><header display-inline="yes-display-inline">Qualified purpose</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term <p> <term>qualified purpose</term> means—</text> <p> <clause commented="no" display-inline="no-display-inline" id="id2946387A02FE4A41823C8B26C1AB011C"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of a qualified forestry <p> conservation bond, a purpose specified in section 54B(e),</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="H5D9D44559B244B76A321F69D5118B1C3"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of a new clean renewable energy <p> bond, a purpose specified in section 54C(a)(1), and</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="HBF0DF86E47AE4D5392D7582FA300375E"><enum>(iii)</enum><text display-inline="yes-display-inline">in the case of a qualified energy <p> conservation bond, a purpose specified in section <p> 54D(a)(1).</text> <p> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0A5B065D13A24F66AC007FA0E6508FA"><enum>(3)</enum><text display-inline="yes-display-inline">The table of sections for subpart I of part <p> IV of subchapter A of chapter 1, as amended by this Act, is amended by adding <p> at the end the following new item:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="HEE986F1AC7604181BD50AF0791DAE3FD" reported-display-style="italic" style="OLC"> <p> <toc changed="added" container-level="quoted-block-container" idref="H84E4FF4893D849EB890056C916790067" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration" reported-display-style="italic"> <p> <toc-entry bold="off" idref="H85287BA9F6C54044A49405E9007B70A4" level="section">Sec. 54D. Qualified energy conservation <p> bonds.</toc-entry> <p> </toc> <p> <after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HEF36F5327CE0441A819EAB2FA5BEE7D4"><enum>(c)</enum><header display-inline="yes-display-inline">Effective <p> date</header><text display-inline="yes-display-inline">The amendments made by <p> this section shall apply to obligations issued after the date of the enactment <p> of this Act.</text> <p> </subsection></section><section commented="no" display-inline="no-display-inline" id="HE3FC351DFD65445383E7492946B7A155" section-type="subsequent-section"><enum>302.</enum><header display-inline="yes-display-inline">Credit for nonbusiness energy <p> property</header> <p> <subsection commented="no" display-inline="no-display-inline" id="H8A11E37B09064EA6A3A9DFBE1FB2D00"><enum>(a)</enum><header display-inline="yes-display-inline">Extension of credit</header><text display-inline="yes-display-inline">Section 25C(g) is amended by striking <p> <quote>placed in service after December 31, 2007</quote> and inserting “placed <p> in service—</text> <p> <quoted-block act-name="" changed="added" id="id822E907D30744AA384A8498377C3F6E1" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" id="id3128F29A3F39462182CC823A71735ACF"><enum>(1)</enum><text>after December 31, 2007, <p> and before January 1, 2009, or</text> <p> </paragraph><paragraph commented="no" id="idAE8C6FD7BF9748529BBA0171D7DC2266"><enum>(2)</enum><text>after December 31, <p> 2009.</text> <p> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="HA48B7A33C404418981E9DF3E65F032AE"><enum>(b)</enum><header display-inline="yes-display-inline">Qualified biomass fuel property</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="H6EC5366AA5E342A2B8D612BBBD81E2FB"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 25C(d)(3) is amended—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="HAD5734D1B12C4EA19EC3AF00E23B3511"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>and</quote> at the end <p> of subparagraph (D),</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6BE1A6A5F86A4A8AB29F00ACFBFDB964"><enum>(B)</enum><text display-inline="yes-display-inline">by striking the period at the end of <p> subparagraph (E) and inserting <quote>, and</quote>, and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0D834FE8F4E441618FFA118DC3B44847"><enum>(C)</enum><text display-inline="yes-display-inline">by adding at the end the following new <p> subparagraph:</text> <p> <quoted-block act-name="" changed="added" display-inline="no-display-inline" id="H1E70A43AA3E44243A63F0094D016C85D" reported-display-style="italic" style="OLC"> <p> <subparagraph commented="no" display-inline="no-display-inline" id="H70AFF7E5AE8E4B630035795F301D932B"><enum>(F)</enum><text display-inline="yes-display-inline">a stove which uses the burning of biomass <p> fuel to heat a dwelling unit located in the United States and used as a <p> residence by the taxpayer, or to heat water for use in such a dwelling unit, <p> and which has a thermal efficiency rating of at least 75 <p> percent.</text> <p> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7039DBEC3FBB4799B1B55F43151FE75E"><enum>(2)</enum><header display-inline="yes-display-inline">Biomass fuel</header><text display-inline="yes-display-inline">Section 25C(d) is amended by adding at the <p> end the following new paragraph:</text> <p> <quoted-block act-name="" changed="added" display-inline="no-display-inline" id="H37AD937145844C570037128DCC227E15" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" display-inline="no-display-inline" id="H6A38CBDFD1C344C1A21D9378BD538D86"><enum>(6)</enum><header display-inline="yes-display-inline">Biomass fuel</header><text display-inline="yes-display-inline">The term <term>biomass fuel</term> means <p> any plant-derived fuel available on a renewable or recurring basis, including <p> agricultural crops and trees, wood and wood waste and residues (including wood <p> pellets), plants (including aquatic plants), grasses, residues, and <p> fibers.</text> <p> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id505640F41F2247DC9F7E80BE61E1EE63"><enum>(c)</enum><header display-inline="yes-display-inline">Modification of water heater <p> requirements</header><text display-inline="yes-display-inline">Section <p> 25C(d)(3)(E) is amended by inserting <quote>or a thermal efficiency of at least <p> 90 percent</quote> after <quote>0.80</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H34D7444BA7E84220A2EA9740C1DA72BC"><enum>(d)</enum><header display-inline="yes-display-inline">Coordination with credit for qualified <p> geothermal heat pump property expenditures</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="HF873EA2C1AF64F7389A674376C5C1FDB"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (3) of section 25C(d), as amended <p> by subsections (b) and (c), is amended by striking subparagraph (C) and by <p> redesignating subparagraphs (D), (E), and (F) as subparagraphs (C), (D), and <p> (E), respectively.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9D43AF099E7F484189C1E4F35300A828"><enum>(2)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">Subparagraph (C) of section 25C(d)(2) is <p> amended to read as follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H5AC68A0B288248A0A312775464F28CF3" reported-display-style="italic" style="OLC"> <p> <subparagraph commented="no" display-inline="no-display-inline" id="H6F2B2DB86BDD473697D06DAB06D8436"><enum>(C)</enum><header display-inline="yes-display-inline">Requirements and standards for air <p> conditioners and heat pumps</header><text display-inline="yes-display-inline">The standards and requirements prescribed <p> by the Secretary under subparagraph (B) with respect to the energy efficiency <p> ratio (EER) for central air conditioners and electric heat pumps—</text> <p> <clause commented="no" display-inline="no-display-inline" id="HF0B9F7A5DD214304A446799D4BC7EAD5"><enum>(i)</enum><text display-inline="yes-display-inline">shall require measurements to be based on <p> published data which is tested by manufacturers at 95 degrees Fahrenheit, <p> and</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="H5608373826B04D779E48C2FA34FCA6B"><enum>(ii)</enum><text display-inline="yes-display-inline">may be based on the certified data of the <p> Air Conditioning and Refrigeration Institute that are prepared in partnership <p> with the Consortium for Energy <p> Efficiency.</text> <p> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idD009D835B76B4483A75E0D7C2E6FA0FA"><enum>(e)</enum><header display-inline="yes-display-inline">Modification of qualified energy efficiency <p> improvements</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="id29F7A278CD8044DC81E8F379D9A12145"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (1) of section 25C(c) is amended <p> by inserting <quote>, or an asphalt roof with appropriate cooling <p> granules,</quote> before <quote>which meet the Energy Star program <p> requirements</quote>.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1E8EF059EF9240C69A0A7D45216F5025"><enum>(2)</enum><header display-inline="yes-display-inline">Building envelope component</header><text display-inline="yes-display-inline">Subparagraph (D) of section 25C(c)(2) is <p> amended—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id145D76697CBC4C989E9EC1CF16A1A272"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting <quote>or asphalt roof</quote> <p> after <quote>metal roof</quote>, and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF2E63964448E492885E0E6216A6B6776"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting <quote>or cooling <p> granules</quote> after <quote>pigmented coatings</quote>.</text> <p> </subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB3625A44EF9241FD86D2C6B74EF84DB1"><enum>(f)</enum><header display-inline="yes-display-inline">Effective dates</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="id822A6E5D479E4C01B6E9A0E8CDB570C2"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in paragraph (2), the <p> amendments made this section shall apply to expenditures made after December <p> 31, 2008.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idC48938BF5DC2434CB58A353F74A8CE3C"><enum>(2)</enum><header display-inline="yes-display-inline">Modification of qualified energy efficiency <p> improvements</header><text display-inline="yes-display-inline">The amendments <p> made by subsection (e) shall apply to property placed in service after the date <p> of the enactment of this Act.</text> <p> </paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HA43A73ADCA924CBB8588CDE8E328B48F" section-type="subsequent-section"><enum>303.</enum><header display-inline="yes-display-inline">Energy efficient commercial buildings <p> deduction</header><text display-inline="no-display-inline">Subsection (h) of <p> section 179D is amended by striking <quote>December 31, 2008</quote> and <p> inserting <quote>December 31, 2013</quote>.</text> <p> </section><section commented="no" display-inline="no-display-inline" id="id6C41AE78358345AF860B65CD2E8FE95E" section-type="subsequent-section"><enum>304.</enum><header>New energy efficient <p> home credit</header><text display-inline="no-display-inline">Subsection (g) of <p> section 45L (relating to termination) is amended by striking <quote>December <p> 31, 2008</quote> and inserting <quote>December 31, 2009</quote>.</text> <p> </section><section commented="no" display-inline="no-display-inline" id="HC8E7F079ECF4414EAC1D586F39A3646C" section-type="subsequent-section"><enum>305.</enum><header display-inline="yes-display-inline">Modifications of energy efficient appliance <p> credit for appliances produced after 2007</header> <p> <subsection commented="no" display-inline="no-display-inline" id="H7A8530BA2257493283E8EDB77838BB1B"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsection (b) of section 45M is amended to <p> read as follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="HE05CD649346843E8BCCEDF8945A0C263" reported-display-style="italic" style="OLC"> <p> <subsection commented="no" display-inline="no-display-inline" id="HAF358754003E41C4B98691AE590F534"><enum>(b)</enum><header display-inline="yes-display-inline">Applicable amount</header><text display-inline="yes-display-inline">For purposes of subsection (a)—</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="H0236C851612943AF8CDD530072D8F6F5"><enum>(1)</enum><header display-inline="yes-display-inline">Dishwashers</header><text display-inline="yes-display-inline">The applicable amount is—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="H04D9C6591D23423D901BCF0074BD8C00"><enum>(A)</enum><text display-inline="yes-display-inline">$45 in the case of a dishwasher which is <p> manufactured in calendar year 2008 or 2009 and which uses no more than 324 <p> kilowatt hours per year and 5.8 gallons per cycle, and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1D92D0F645F9485086DE56511E00F487"><enum>(B)</enum><text display-inline="yes-display-inline">$75 in the case of a dishwasher which is <p> manufactured in calendar year 2008, 2009, or 2010 and which uses no more than <p> 307 kilowatt hours per year and 5.0 gallons per cycle (5.5 gallons per cycle <p> for dishwashers designed for greater than 12 place settings).</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H397C3360ADCA420D9EDCCB633E212933"><enum>(2)</enum><header display-inline="yes-display-inline">Clothes washers</header><text display-inline="yes-display-inline">The applicable amount is—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="H0AD9890093EA4ADD9B1C243D6DF1B875"><enum>(A)</enum><text display-inline="yes-display-inline">$75 in the case of a residential <p> top-loading clothes washer manufactured in calendar year 2008 which meets or <p> exceeds a 1.72 modified energy factor and does not exceed a 8.0 water <p> consumption factor,</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5BE2CF3901B84B8DAF225FBBC8B98B00"><enum>(B)</enum><text display-inline="yes-display-inline">$125 in the case of a residential <p> top-loading clothes washer manufactured in calendar year 2008 or 2009 which <p> meets or exceeds a 1.8 modified energy factor and does not exceed a 7.5 water <p> consumption factor,</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE3FD3B5C50B3480AAE1755F92200EB99"><enum>(C)</enum><text display-inline="yes-display-inline">$150 in the case of a residential or <p> commercial clothes washer manufactured in calendar year 2008, 2009, or 2010 <p> which meets or exceeds 2.0 modified energy factor and does not exceed a 6.0 <p> water consumption factor, and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE10CEB853A6E4C4590185EAF5D31A4D4"><enum>(D)</enum><text display-inline="yes-display-inline">$250 in the case of a residential or <p> commercial clothes washer manufactured in calendar year 2008, 2009, or 2010 <p> which meets or exceeds 2.2 modified energy factor and does not exceed a 4.5 <p> water consumption factor.</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H19A81C7DAF0243DF928567DBC3CA7594"><enum>(3)</enum><header display-inline="yes-display-inline">Refrigerators</header><text display-inline="yes-display-inline">The applicable amount is—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="H1691B27D033A4909AAEFAB90C7EA77A3"><enum>(A)</enum><text display-inline="yes-display-inline">$50 in the case of a refrigerator which is <p> manufactured in calendar year 2008, and consumes at least 20 percent but not <p> more than 22.9 percent less kilowatt hours per year than the 2001 energy <p> conservation standards,</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2513A6F0846644BEA0BF96C6F2C4C65C"><enum>(B)</enum><text display-inline="yes-display-inline">$75 in the case of a refrigerator which is <p> manufactured in calendar year 2008 or 2009, and consumes at least 23 percent <p> but no more than 24.9 percent less kilowatt hours per year than the 2001 energy <p> conservation standards,</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H15525DBA115546C9902BFE097E6B10A8"><enum>(C)</enum><text display-inline="yes-display-inline">$100 in the case of a refrigerator which is <p> manufactured in calendar year 2008, 2009, or 2010, and consumes at least 25 <p> percent but not more than 29.9 percent less kilowatt hours per year than the <p> 2001 energy conservation standards, and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5B8230A8B759407A8C691D8BADA1C527"><enum>(D)</enum><text display-inline="yes-display-inline">$200 in the case of a refrigerator <p> manufactured in calendar year 2008, 2009, or 2010 and which consumes at least <p> 30 percent less energy than the 2001 energy conservation <p> standards.</text> <p> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="HF4C45125D54741849BF365DDAD85E6D"><enum>(b)</enum><header display-inline="yes-display-inline">Eligible production</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="H8F461CD0CFDF4363ADF7C94FDC1DBDE5"><enum>(1)</enum><header display-inline="yes-display-inline">Similar treatment for all <p> appliances</header><text display-inline="yes-display-inline">Subsection (c) of <p> section 45M is amended—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="H74DF31B6FEDD470895D127AF96E2AD2E"><enum>(A)</enum><text display-inline="yes-display-inline">by striking paragraph (2),</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA6149FE0C5684FE990688BFDD4CE10DF"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>(1) <p> <header-in-text level="paragraph" style="OLC">In <p> general</header-in-text></quote> and all that follows through <quote>the <p> eligible</quote> and inserting <quote>The eligible</quote>,</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8924E7024B8C475CBC74D46C2797FDD0"><enum>(C)</enum><text display-inline="yes-display-inline">by moving the text of such subsection in <p> line with the subsection heading, and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H61AE2584659A498BB02EAD003B922BEC"><enum>(D)</enum><text display-inline="yes-display-inline">by redesignating subparagraphs (A) and (B) <p> as paragraphs (1) and (2), respectively, and by moving such paragraphs 2 ems to <p> the left.</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA6385C08513848C4AA96C57FAA9FAB89"><enum>(2)</enum><header display-inline="yes-display-inline">Modification of base period</header><text display-inline="yes-display-inline">Paragraph (2) of section 45M(c), as amended <p> by paragraph (1), is amended by striking <quote>3-calendar year</quote> and <p> inserting <quote>2-calendar year</quote>.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H52748707465248D2B42396A7D6D24B65"><enum>(c)</enum><header display-inline="yes-display-inline">Types of energy efficient <p> appliances</header><text display-inline="yes-display-inline">Subsection (d) of <p> section 45M is amended to read as follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="HB3B2ED0D48F74FED8000842040B3805D" reported-display-style="italic" style="OLC"> <p> <subsection commented="no" display-inline="no-display-inline" id="HFEEC3BE3E33E465C94E25297E6A168A2"><enum>(d)</enum><header display-inline="yes-display-inline">Types of energy efficient <p> appliance</header><text display-inline="yes-display-inline">For purposes of <p> this section, the types of energy efficient appliances are—</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="H284D70819E604EAB92DF58A74E44C296"><enum>(1)</enum><text display-inline="yes-display-inline">dishwashers described in subsection <p> (b)(1),</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD76B62456DC8413A856F2E0020EE5834"><enum>(2)</enum><text display-inline="yes-display-inline">clothes washers described in subsection <p> (b)(2), and</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD7DC761C243A43FCBFBE8578A9D31B42"><enum>(3)</enum><text display-inline="yes-display-inline">refrigerators described in subsection <p> (b)(3).</text> <p> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="HF006590DBEF648AB847CD8916DECAD29"><enum>(d)</enum><header display-inline="yes-display-inline">Aggregate credit amount allowed</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="H7E9EFD7128FE4C1EB655A4729DBE78A7"><enum>(1)</enum><header display-inline="yes-display-inline">Increase in limit</header><text display-inline="yes-display-inline">Paragraph (1) of section 45M(e) is amended <p> to read as follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H181A2B4F4237435F98D02100751300D0" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" display-inline="no-display-inline" id="H565933B1EF3648B4B396E57F8F336120"><enum>(1)</enum><header display-inline="yes-display-inline">Aggregate credit amount <p> allowed</header><text display-inline="yes-display-inline">The aggregate amount <p> of credit allowed under subsection (a) with respect to a taxpayer for any <p> taxable year shall not exceed $75,000,000 reduced by the amount of the credit <p> allowed under subsection (a) to the taxpayer (or any predecessor) for all prior <p> taxable years beginning after December 31, <p> 2007.</text> <p> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H201C6B2BEC9D443497F11FD203780888"><enum>(2)</enum><header display-inline="yes-display-inline">Exception for certain refrigerator and <p> clothes washers</header><text display-inline="yes-display-inline">Paragraph (2) <p> of section 45M(e) is amended to read as follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H74052D77A52D4F949C9EFCBB1E9413" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" display-inline="no-display-inline" id="HE0E7CAE264954D339F93C8BFE426DF63"><enum>(2)</enum><header display-inline="yes-display-inline">Amount allowed for certain refrigerators <p> and clothes washers</header><text display-inline="yes-display-inline">Refrigerators described in subsection <p> (b)(3)(D) and clothes washers described in subsection (b)(2)(D) shall not be <p> taken into account under paragraph <p> (1).</text> <p> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HCB74DB392EB044E28C8B4B006DB4E6F6"><enum>(e)</enum><header display-inline="yes-display-inline">Qualified energy efficient <p> appliances</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="HF10AE3EFDA814E379DB44F25F75313D2"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (1) of section 45M(f) is amended <p> to read as follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H68E5577F09C84FF692002FFE2029FEDF" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" display-inline="no-display-inline" id="H40E71B2B4CAD4D3FB93E3FAEC9CDFE12"><enum>(1)</enum><header display-inline="yes-display-inline">Qualified energy efficient <p> appliance</header><text display-inline="yes-display-inline">The term <p> <term>qualified energy efficient appliance</term> means—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="H12C9DF35EC7E42BEB5DAAF26D9370EB"><enum>(A)</enum><text display-inline="yes-display-inline">any dishwasher described in subsection <p> (b)(1),</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H68BC2936A87C47999D00BEDA329CC266"><enum>(B)</enum><text display-inline="yes-display-inline">any clothes washer described in subsection <p> (b)(2), and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H46D76803708A4E18BCA63FD4EBDB1D0"><enum>(C)</enum><text display-inline="yes-display-inline">any refrigerator described in subsection <p> (b)(3).</text> <p> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBB712A837DD044FFA37B4616E3C01910"><enum>(2)</enum><header display-inline="yes-display-inline">Clothes <p> washer</header><text display-inline="yes-display-inline">Section 45M(f)(3) is <p> amended by inserting <quote>commercial</quote> before <p> <quote>residential</quote> the second place it appears.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB775FF3417AC498A8B5D5DB046565F4F"><enum>(3)</enum><header display-inline="yes-display-inline">Top-loading clothes washer</header><text display-inline="yes-display-inline">Subsection (f) of section 45M is amended by <p> redesignating paragraphs (4), (5), (6), and (7) as paragraphs (5), (6), (7), <p> and (8), respectively, and by inserting after paragraph (3) the following new <p> paragraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="HBBCA6067CADD4A5A83288825AB879EF1" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" display-inline="no-display-inline" id="H93C952DF05FC43D3A4D0ADB7F18DAA82"><enum>(4)</enum><header display-inline="yes-display-inline">Top-loading clothes washer</header><text display-inline="yes-display-inline">The term <quote>top-loading clothes <p> washer</quote> means a clothes washer which has the clothes container <p> compartment access located on the top of the machine and which operates on a <p> vertical <p> axis.</text> <p> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5A7E980EBEAD46A196B1EE4B7F77DFB7"><enum>(4)</enum><header display-inline="yes-display-inline">Replacement of energy factor</header><text display-inline="yes-display-inline">Section 45M(f)(6), as redesignated by <p> paragraph (3), is amended to read as follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="HA6C493D947414564ADC3F6138442AF87" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" display-inline="no-display-inline" id="HC66F71AFCA4747FEAFE907A212FF09A8"><enum>(6)</enum><header display-inline="yes-display-inline">Modified energy factor</header><text display-inline="yes-display-inline">The term <term>modified energy <p> factor</term> means the modified energy factor established by the Department of <p> Energy for compliance with the Federal energy conservation <p> standard.</text> <p> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H42F95F9489D04CE1961E13D4786BFEA5"><enum>(5)</enum><header display-inline="yes-display-inline">Gallons per cycle; water consumption <p> factor</header><text display-inline="yes-display-inline">Section 45M(f), as <p> amended by paragraph (3), is amended by adding at the end the following:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H1290DE2F2ED747EA9D2199E4271C19D5" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" display-inline="no-display-inline" id="H1A337CB4A80140E9A53E689B72EF2474"><enum>(9)</enum><header display-inline="yes-display-inline">Gallons per cycle</header><text display-inline="yes-display-inline">The term <term>gallons per cycle</term> <p> means, with respect to a dishwasher, the amount of water, expressed in gallons, <p> required to complete a normal cycle of a dishwasher.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC226D53CE29840E8A6B788E33F6BEA08"><enum>(10)</enum><header display-inline="yes-display-inline">Water consumption factor</header><text display-inline="yes-display-inline">The term <term>water consumption <p> factor</term> means, with respect to a clothes washer, the quotient of the <p> total weighted per-cycle water consumption divided by the cubic foot (or liter) <p> capacity of the clothes <p> washer.</text> <p> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H28EF5B729B9445A99194C40065BE9E96"><enum>(f)</enum><header display-inline="yes-display-inline">Effective <p> date</header><text display-inline="yes-display-inline">The amendments made by <p> this section shall apply to appliances produced after December 31, 2007.</text> <p> </subsection></section><section commented="no" display-inline="no-display-inline" id="id1ADD3785DAD040E3AF4C8618166E82DE" section-type="subsequent-section"><enum>306.</enum><header display-inline="yes-display-inline">Accelerated recovery period for <p> depreciation of smart meters and smart grid systems</header> <p> <subsection commented="no" display-inline="no-display-inline" id="id794C27E55BC844F09B57696CAE25F12A"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 168(e)(3)(D) is amended by striking <p> <quote>and</quote> at the end of clause (i), by striking the period at the end <p> of clause (ii) and inserting a comma, and by inserting after clause (ii) the <p> following new clauses:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idC716E2227B9D4B37B50E3201335D6132" reported-display-style="italic" style="OLC"> <p> <clause commented="no" display-inline="no-display-inline" id="idD43C82C24E3B4FAB9D655FCB36017A80"><enum>(iii)</enum><text display-inline="yes-display-inline">any qualified smart electric meter, <p> and</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="id0BBFB3A8C0AE461C9FDF0F446CEF41EA"><enum>(iv)</enum><text display-inline="yes-display-inline">any qualified smart electric grid <p> system.</text> <p> </clause><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="id62AA95AE49094B6F835C1EFABAF3933C"><enum>(b)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">Section 168(i) is amended by inserting at <p> the end the following new paragraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idCBD86FE6FE5446E79E034433A8046338" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" display-inline="no-display-inline" id="idEB298167F1CB4AE799404FC6F0D50D0C"><enum>(18)</enum><header display-inline="yes-display-inline">Qualified smart electric meters</header> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id9BFD7C1E95004971ACF68476D819A42C"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>qualified smart electric <p> meter</term> means any smart electric meter which—</text> <p> <clause commented="no" display-inline="no-display-inline" id="idB78FF866DD844BD498B2E1F45E1E24AB"><enum>(i)</enum><text display-inline="yes-display-inline">is placed in service by a taxpayer who is a <p> supplier of electric energy or a provider of electric energy services, <p> and</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="id09A5D07B6B92494B9B0E6EFF6633D3FC"><enum>(ii)</enum><text>does not have a class <p> life (determined without regard to subsection (e)) of less than 10 <p> years.</text> <p> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id4AFF1EB7EA3E4BF8A87E1D31EEC80F5A"><enum>(B)</enum><header display-inline="yes-display-inline">Smart electric meter</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), the term <p> <term>smart electric meter</term> means any time-based meter and related <p> communication equipment which is capable of being used by the taxpayer as part <p> of a system that—</text> <p> <clause commented="no" display-inline="no-display-inline" id="id5796306B35084FAD8F4F35262E9DABCE"><enum>(i)</enum><text display-inline="yes-display-inline">measures and records electricity usage data <p> on a time-differentiated basis in at least 24 separate time segments per <p> day,</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="id263BB39ADC5B4E9BA7594E37943B861D"><enum>(ii)</enum><text display-inline="yes-display-inline">provides for the exchange of information <p> between supplier or provider and the customer’s electric meter in support of <p> time-based rates or other forms of demand response,</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="id7ACEAD3AEE35484BA9031EC1E150A339"><enum>(iii)</enum><text display-inline="yes-display-inline">provides data to such supplier or provider <p> so that the supplier or provider can provide energy usage information to <p> customers electronically, and</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="idE75E87B87CFE41AE9536CB7A2FC97CD4"><enum>(iv)</enum><text display-inline="yes-display-inline">provides net metering.</text> <p> </clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id69738C9F82234EDD96F468DE278DDCFF"><enum>(19)</enum><header display-inline="yes-display-inline">Qualified smart electric grid <p> systems</header> <p> <subparagraph commented="no" display-inline="no-display-inline" id="idE0F2446CC9674F43A059AA585E8AA0EB"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <quote>qualified smart electric <p> grid system</quote> means any smart grid property which—</text> <p> <clause commented="no" display-inline="no-display-inline" id="id0C0F2823B4CE47D792B4C95931C2660C"><enum>(i)</enum><text display-inline="yes-display-inline">is used as part of a system for electric <p> distribution grid communications, monitoring, and management placed in service <p> by a taxpayer who is a supplier of electric energy or a provider of electric <p> energy services, and</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="id764188EDD39A493D9693A799CC240F20"><enum>(ii)</enum><text>does not have a class <p> life (determined without regard to subsection (e)) of less than 10 <p> years.</text> <p> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3BCF24321F8B4574B0B130C2B7F6C87B"><enum>(B)</enum><header display-inline="yes-display-inline">Smart grid property</header><text display-inline="yes-display-inline">For the purposes of subparagraph (A), the <p> term <quote>smart grid property</quote> means electronics and related equipment <p> that is capable of—</text> <p> <clause commented="no" display-inline="no-display-inline" id="id7BB6C5F09E6F4086BCBB3D6FBB8B8338"><enum>(i)</enum><text display-inline="yes-display-inline">sensing, collecting, and monitoring data of <p> or from all portions of a utility’s electric distribution grid,</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="id6B7BEFAAE2E747B19658B737B92EFB5F"><enum>(ii)</enum><text display-inline="yes-display-inline">providing real-time, two-way communications <p> to monitor or manage such grid, and</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="idC0CC257A5FBA464098D42EB88503F214"><enum>(iii)</enum><text display-inline="yes-display-inline">providing real time analysis of and event <p> prediction based upon collected data that can be used to improve electric <p> distribution system reliability, quality, and <p> performance.</text> <p> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="idDCF931ED7D794409AB5A6412D82AB557"><enum>(c)</enum><header display-inline="yes-display-inline">Continued application of 150 percent <p> declining balance method</header><text display-inline="yes-display-inline">Paragraph (2) of section 168(b) is amended <p> by striking <quote>or</quote> at the end of subparagraph (B), by redesignating <p> subparagraph (C) as subparagraph (D), and by inserting after subparagraph (B) <p> the following new subparagraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id260A6E17E64D4FEF887B0E90D1B93CE4" reported-display-style="italic" style="OLC"> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id6CC1BC8A55204E598FFB564785BF06C8"><enum>(C)</enum><text display-inline="yes-display-inline">any property (other than property described <p> in paragraph (3)) which is a qualified smart electric meter or qualified smart <p> electric grid system, <p> or</text> <p> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="id803AC2C437984A9F9AF47C1C81CB877D"><enum>(d)</enum><header display-inline="yes-display-inline">Effective <p> date</header><text display-inline="yes-display-inline">The amendments made by <p> this section shall apply to property placed in service after the date of the <p> enactment of this Act.</text> <p> </subsection></section><section commented="no" display-inline="no-display-inline" id="HC8238A1A7B2446C8A6CF242C9A6BC6" section-type="subsequent-section"><enum>307.</enum><header display-inline="yes-display-inline">Qualified green building and sustainable <p> design projects</header> <p> <subsection commented="no" display-inline="no-display-inline" id="H302C3724BA57428785F2432DBEB028B7"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (8) of section 142(l) is amended <p> by striking <quote>September 30, 2009</quote> and inserting <quote>September <p> 30, 2012</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H3E9D484C61AA45CF9754C1AA44622738"><enum>(b)</enum><header display-inline="yes-display-inline">Treatment of current refunding <p> bonds</header><text display-inline="yes-display-inline">Paragraph (9) of <p> section 142(l) is amended by striking <quote>October 1, 2009</quote> and <p> inserting <quote>October 1, 2012</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="HEEEEA6FA3C794A39B43E72E5655631D0"><enum>(c)</enum><header display-inline="yes-display-inline">Accountability</header><text display-inline="yes-display-inline">The second sentence of section 701(d) of <p> the American Jobs Creation Act of 2004 is amended by striking <p> <quote>issuance,</quote> and inserting <quote>issuance of the last issue with <p> respect to such project,</quote>.</text> <p> </subsection></section><section commented="no" display-inline="no-display-inline" id="idF3479AB6EA3E44BD8E7151EB34A140CC" section-type="subsequent-section"><enum>308.</enum><header display-inline="yes-display-inline">Special depreciation allowance for certain <p> reuse and recycling property</header> <p> <subsection commented="no" display-inline="no-display-inline" id="idF7D6D5B951074AE08DB8831B3D742E32"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 168 is amended by adding at the end <p> the following new subsection:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id8C575933D8EB40348946A3CC824F673E" reported-display-style="italic" style="OLC"> <p> <subsection commented="no" display-inline="no-display-inline" id="id7A62B63F438749A2BA895562BF4B49E3"><enum>(m)</enum><header display-inline="yes-display-inline">Special allowance for certain reuse and <p> recycling property</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="id6818494AB5B543E5866BFF95400C48B1"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In the case of any qualified reuse and <p> recycling property—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="IDebfeb1f3013a41c28b2b11cd73da9b5a"><enum>(A)</enum><text display-inline="yes-display-inline">the depreciation deduction provided by <p> section 167(a) for the taxable year in which such property is placed in service <p> shall include an allowance equal to 50 percent of the adjusted basis of the <p> qualified reuse and recycling property, and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID56f60bc55b2a4660adc365c2febf7496"><enum>(B)</enum><text display-inline="yes-display-inline">the adjusted basis of the qualified reuse <p> and recycling property shall be reduced by the amount of such deduction before <p> computing the amount otherwise allowable as a depreciation deduction under this <p> chapter for such taxable year and any subsequent taxable year.</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idDF6797A28F6C4FA8A843456EDEC9D211"><enum>(2)</enum><header display-inline="yes-display-inline">Qualified reuse and recycling <p> property</header><text display-inline="yes-display-inline">For purposes of this <p> subsection—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id4EADE30E83814EE7BA322D20AD69ABB0"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>qualified reuse and <p> recycling property</term> means any reuse and recycling property—</text> <p> <clause commented="no" display-inline="no-display-inline" id="idF93E0650370A4BD9BF875C5B58CD247B"><enum>(i)</enum><text display-inline="yes-display-inline">to which this section applies,</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="ID5391779aaae243b4acf2ae687b82fbda"><enum>(ii)</enum><text display-inline="yes-display-inline">which has a useful life of at least 5 <p> years,</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="IDda0eaef30a284765b089190ac458a070"><enum>(iii)</enum><text display-inline="yes-display-inline">the original use of which commences with <p> the taxpayer after August 31, 2008, and</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="ID40ebd392cc814dd08dabdfdc8bc3ed45"><enum>(iv)</enum><text display-inline="yes-display-inline">which is—</text> <p> <subclause commented="no" display-inline="no-display-inline" id="ID0ef93fa1478c4637b4dcef16dc2634b1"><enum>(I)</enum><text display-inline="yes-display-inline">acquired by purchase (as defined in section <p> 179(d)(2)) by the taxpayer after August 31, 2008, but only if no written <p> binding contract for the acquisition was in effect before September 1, 2008, <p> or</text> <p> </subclause><subclause commented="no" display-inline="no-display-inline" id="id7595E89602FA411C802635C02EEDB9AE"><enum>(II)</enum><text display-inline="yes-display-inline">acquired by the taxpayer pursuant to a <p> written binding contract which was entered into after August 31, 2008.</text> <p> </subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID1173a87bc1ed42b6a66279c68f303b2b"><enum>(B)</enum><header display-inline="yes-display-inline">Exceptions</header> <p> <clause commented="no" display-inline="no-display-inline" id="id63D1779C60D84A569A69B6097B895D8A"><enum>(i)</enum><header display-inline="yes-display-inline">Bonus depreciation property under <p> subsection <enum-in-header>(k)</enum-in-header></header><text display-inline="yes-display-inline">The term <term>qualified reuse and <p> recycling property</term> shall not include any property to which section <p> 168(k) applies.</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="ID0221bdddcd4b455b9a9f7071ff73b68c"><enum>(ii)</enum><header display-inline="yes-display-inline">Alternative depreciation <p> property</header><text display-inline="yes-display-inline">The term <p> <term>qualified reuse and recycling property</term> shall not include any <p> property to which the alternative depreciation system under subsection (g) <p> applies, determined without regard to paragraph (7) of subsection (g) (relating <p> to election to have system apply).</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="IDce6463c92f144356866513a8a67cd5f1"><enum>(iii)</enum><header display-inline="yes-display-inline">Election out</header><text display-inline="yes-display-inline">If a taxpayer makes an election under this <p> clause with respect to any class of property for any taxable year, this <p> subsection shall not apply to all property in such class placed in service <p> during such taxable year.</text> <p> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID1bcb667b9e8d49a3a19f3528891eaf6e"><enum>(C)</enum><header display-inline="yes-display-inline">Special rule for self-constructed <p> property</header><text display-inline="yes-display-inline">In the case of a <p> taxpayer manufacturing, constructing, or producing property for the taxpayer's <p> own use, the requirements of clause (iv) of subparagraph (A) shall be treated <p> as met if the taxpayer begins manufacturing, constructing, or producing the <p> property after August 31, 2008.</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id1D6EDE6AC4054DEFB691B92B8B1F6BEF"><enum>(D)</enum><header display-inline="yes-display-inline">Deduction allowed in computing minimum <p> tax</header><text display-inline="yes-display-inline">For purposes of <p> determining alternative minimum taxable income under section 55, the deduction <p> under subsection (a) for qualified reuse and recycling property shall be <p> determined under this section without regard to any adjustment under section <p> 56.</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDBF93567CEACA4EAD9DEDE6FC3F249C1A"><enum>(3)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this subsection—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="IDF531F8FC3BA240F58A5FF87130619B3D"><enum>(A)</enum><header display-inline="yes-display-inline">Reuse and recycling property</header> <p> <clause commented="no" display-inline="no-display-inline" id="IDE89D7D768F7447BEBBA00CFAE5885E68"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>reuse and recycling <p> property</term> means any machinery and equipment (not including buildings or <p> real estate), along with all appurtenances thereto, including software <p> necessary to operate such equipment, which is used exclusively to collect, <p> distribute, or recycle qualified reuse and recyclable materials.</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="ID4C68A858EA8B4D8DAB9A75AA2432FA9D"><enum>(ii)</enum><header display-inline="yes-display-inline">Exclusion</header><text display-inline="yes-display-inline">Such term does not include rolling stock or <p> other equipment used to transport reuse and recyclable materials.</text> <p> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID0ED524305ECE4C82B0166986836F1E9A"><enum>(B)</enum><header display-inline="yes-display-inline">Qualified reuse and recyclable <p> materials</header> <p> <clause commented="no" display-inline="no-display-inline" id="idF597491B2988489C87F700DF72AC48AE"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>qualified reuse and <p> recyclable materials</term> means scrap plastic, scrap glass, scrap textiles, <p> scrap rubber, scrap packaging, recovered fiber, scrap ferrous and nonferrous <p> metals, or electronic scrap generated by an individual or business.</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="idC421DB55E81C409CAF9B61A92E290A7C"><enum>(ii)</enum><header display-inline="yes-display-inline">Electronic scrap</header><text display-inline="yes-display-inline">For purposes of clause (i), the term <p> <term>electronic scrap</term> means—</text> <p> <subclause commented="no" display-inline="no-display-inline" id="id33259264CE494543831A1D51AF774FAB"><enum>(I)</enum><text display-inline="yes-display-inline">any cathode ray tube, flat panel screen, or <p> similar video display device with a screen size greater than 4 inches measured <p> diagonally, or</text> <p> </subclause><subclause commented="no" display-inline="no-display-inline" id="id1D22FD9E44ED4DC68818AD9E21E9D0A1"><enum>(II)</enum><text display-inline="yes-display-inline">any central processing unit.</text> <p> </subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDB6629853E9544648A5FE069E1FCA196E"><enum>(C)</enum><header display-inline="yes-display-inline">Recycling or recycle</header><text display-inline="yes-display-inline">The term <term>recycling</term> or <p> <term>recycle</term> means that process (including sorting) by which worn or <p> superfluous materials are manufactured or processed into specification grade <p> commodities that are suitable for use as a replacement or substitute for virgin <p> materials in manufacturing tangible consumer and commercial products, including <p> packaging.</text> <p> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="id748A60323C5F446D8BF3F972FE34E35B"><enum>(b)</enum><header display-inline="yes-display-inline">Effective <p> date</header><text display-inline="yes-display-inline">The amendment made by <p> this section shall apply to property placed in service after August 31, <p> 2008.</text> <p> </subsection></section><enum>IV</enum><header>Revenue <p> provisions</header> <p> <section display-inline="no-display-inline" id="id6449AED100EA4FA7A55687D7ED19A6E8" section-type="subsequent-section"><enum>401.</enum><header>Limitation of <p> deduction for income attributable to domestic production of oil, gas, or <p> primary products thereof</header> <p> <subsection id="H4E561CE45B4645C8AEDE47F99134457C"><enum>(a)</enum><header>In <p> general</header><text>Section 199(d) is amended by <p> redesignating paragraph (9) as paragraph (10) and by inserting after paragraph <p> (8) the following new paragraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H050F5C7E6E4647F6A0ECB817A4005BA5" reported-display-style="italic" style="OLC"> <p> <paragraph id="HF68FC4BD063C42B0A348A100221248A6"><enum>(9)</enum><header>Special rule for <p> taxpayers with oil related qualified production activities income</header> <p> <subparagraph id="H2BBAA5D9CA334EB38C00BC41A4FB048E"><enum>(A)</enum><header>In <p> general</header><text>If a taxpayer has oil related qualified production <p> activities income for any taxable year beginning after 2009, the amount <p> otherwise allowable as a deduction under subsection (a) shall be reduced by 3 <p> percent of the least of—</text> <p> <clause id="H97DEEE12EF864D3186D8694CE84CBD05"><enum>(i)</enum><text>the oil related qualified <p> production activities income of the taxpayer for the taxable year,</text> <p> </clause><clause id="HDB722F89355E4FCE9094F308568C757E"><enum>(ii)</enum><text>the qualified production <p> activities income of the taxpayer for the taxable year, or</text> <p> </clause><clause id="HE4AEA9979EAC4F518FA600EC4EC9F2"><enum>(iii)</enum><text>taxable income <p> (determined without regard to this section).</text> <p> </clause></subparagraph><subparagraph id="HD8EBBBCE73DF4E5CBDFD5451C728C217"><enum>(B)</enum><header>Oil related qualified <p> production activities income</header><text>For purposes of this paragraph, the <p> term <term>oil related qualified production activities income</term> means for <p> any taxable year the qualified production activities income which is <p> attributable to the production, refining, processing, transportation, or <p> distribution of oil, gas, or any primary product thereof during such taxable <p> year.</text> <p> </subparagraph><subparagraph id="id5B1C6C24B57E47E49DFFF66F9D8D4B94"><enum>(C)</enum><header>Primary <p> product</header><text>For purposes of this paragraph, the term <term>primary <p> product</term> has the same meaning as when used in section 927(a)(2)(C), as in <p> effect before its <p> repeal.</text> <p> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection id="H715A582F0AA64D3088002C9E778ECEAA"><enum>(b)</enum><header>Conforming <p> amendment</header><text>Section 199(d)(2) (relating to application to <p> individuals) is amended by striking <quote>subsection (a)(1)(B)</quote> and <p> inserting <quote>subsections (a)(1)(B) and (d)(9)(A)(iii)</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H0F263FAC24A64E2EB8B2BA004C8173B9"><enum>(c)</enum><header>Effective <p> date</header><text>The amendments made by this section shall apply to taxable <p> years beginning after December 31, 2008.</text> <p> </subsection></section><section id="id25BC41362D014B7481C1E3682DA10FC6"><enum>402.</enum><header>Elimination of the <p> different treatment of foreign oil and gas extraction income and foreign oil <p> related income for purposes of the foreign tax credit</header> <p> <subsection id="id0BF7EF596035441585F12D08CEDA49F6"><enum>(a)</enum><header>In <p> general</header><text>Subsections (a) and (b) of section 907 (relating to <p> special rules in case of foreign oil and gas income) are amended to read as <p> follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idC39B4CD7BF95409A87757178A46CF741" reported-display-style="italic" style="OLC"> <p> <subsection id="id68C6821D68CF4962A68A0A666748A193"><enum>(a)</enum><header>Reduction in amount <p> allowed as foreign tax under section 901</header><text>In applying section 901, <p> the amount of any foreign oil and gas taxes paid or accrued (or deemed to have <p> been paid) during the taxable year which would (but for this subsection) be <p> taken into account for purposes of section 901 shall be reduced by the amount <p> (if any) by which the amount of such taxes exceeds the product of—</text> <p> <paragraph id="id434BA32137B441F3BFCAB4EFBCE162B5"><enum>(1)</enum><text>the amount of the <p> combined foreign oil and gas income for the taxable year,</text> <p> </paragraph><paragraph id="id63B6F42311C74E52863697A488B3D68B"><enum>(2)</enum><text>multiplied by—</text> <p> <subparagraph id="id72E54638872147AC8DCC77F7372F3832"><enum>(A)</enum><text>in the case of a <p> corporation, the percentage which is equal to the highest rate of tax specified <p> under section 11(b), or</text> <p> </subparagraph><subparagraph id="id505DF4D773574DCF955038AFAB0F66A0"><enum>(B)</enum><text>in the case of an <p> individual, a fraction the numerator of which is the tax against which the <p> credit under section 901(a) is taken and the denominator of which is the <p> taxpayer's entire taxable income.</text> <p> </subparagraph></paragraph></subsection><subsection id="idEB31014446CD40F9AF09FD0E0CAFB244"><enum>(b)</enum><header>Combined foreign oil <p> and gas income; foreign oil and gas taxes</header><text>For purposes of this <p> section—</text> <p> <paragraph id="id3E990C3BECE14833B4E94C81BF380A1F"><enum>(1)</enum><header>Combined foreign oil <p> and gas income</header><text>The term <term>combined foreign oil and gas <p> income</term> means, with respect to any taxable year, the sum of—</text> <p> <subparagraph id="idDCBC163ACC4F4FF592DCFB8729B48E2C"><enum>(A)</enum><text>foreign oil and gas <p> extraction income, and</text> <p> </subparagraph><subparagraph id="id728EC917D2434567A758CF7BE3F3B345"><enum>(B)</enum><text>foreign oil related <p> income.</text> <p> </subparagraph></paragraph><paragraph id="idC1EADD8E4B944564957938B926AA4864"><enum>(2)</enum><header>Foreign oil and gas <p> taxes</header><text>The term <term>foreign oil and gas taxes</term> means, with <p> respect to any taxable year, the sum of—</text> <p> <subparagraph id="id2A175074B9354CEA8EF99C59D0437FAA"><enum>(A)</enum><text>oil and gas extraction <p> taxes, and</text> <p> </subparagraph><subparagraph id="idA0882A0DDA1F4B7FBD800B2EF0D9D8A2"><enum>(B)</enum><text>any income, war profits, <p> and excess profits taxes paid or accrued (or deemed to have been paid or <p> accrued under section 902 or 960) during the taxable year with respect to <p> foreign oil related income (determined without regard to subsection (c)(4)) or <p> loss which would be taken into account for purposes of section 901 without <p> regard to this <p> section.</text> <p> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection id="id634FD5B3CD7A4C98A78C60FF919C05B4"><enum>(b)</enum><header>Recapture of foreign <p> oil and gas losses</header><text>Paragraph (4) of section 907(c) (relating to <p> recapture of foreign oil and gas extraction losses by recharacterizing later <p> extraction income) is amended to read as follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id83C411031368404CACC28F18CAB996F3" reported-display-style="italic" style="OLC"> <p> <paragraph id="id938D11B300FF46C6B3B30EFA2AB9D7A4"><enum>(4)</enum><header>Recapture of foreign <p> oil and gas losses by recharacterizing later combined foreign oil and gas <p> income</header> <p> <subparagraph id="id6D579DB32C7A4A8A9B5B9CF38672DF70"><enum>(A)</enum><header>In <p> general</header><text>The combined foreign oil and gas income of a taxpayer for <p> a taxable year (determined without regard to this paragraph) shall be <p> reduced—</text> <p> <clause id="idF996D7AE001540BB94BE03E96D91F2A1"><enum>(i)</enum><text>first by the amount <p> determined under subparagraph (B), and</text> <p> </clause><clause id="idCE82B398F7304D51994A4DF138024BF1"><enum>(ii)</enum><text>then by the amount <p> determined under subparagraph (C).</text> <p> </clause><continuation-text continuation-text-level="subparagraph">The aggregate amount of such reductions <p> shall be treated as income (from sources without the United States) which is <p> not combined foreign oil and gas income.</continuation-text></subparagraph><subparagraph id="id28E6BA6BD99B4C6BA8B05AA1AEA99490"><enum>(B)</enum><header>Reduction for pre-2009 <p> foreign oil extraction losses</header><text>The reduction under this paragraph <p> shall be equal to the lesser of—</text> <p> <clause id="id6BE70B8D51FF486DAD15E03691157271"><enum>(i)</enum><text>the foreign oil and gas <p> extraction income of the taxpayer for the taxable year (determined without <p> regard to this paragraph), or</text> <p> </clause><clause id="id845A3F167E134B9A85D64358DF2FB4E3"><enum>(ii)</enum><text>the excess of—</text> <p> <subclause id="idC559644EAA064D5780D93A85ECB80186"><enum>(I)</enum><text>the aggregate amount of <p> foreign oil extraction losses for preceding taxable years beginning after <p> December 31, 1982, and before January 1, 2009, over</text> <p> </subclause><subclause id="id26D950ED312442608B5E0C6A0E51462A"><enum>(II)</enum><text>so much of such <p> aggregate amount as was recharacterized under this paragraph (as in effect <p> before and after the date of the enactment of the <p> <short-title>Energy Improvement and Extension Act of <p> 2008</short-title>) for preceding taxable years beginning after December 31, <p> 1982.</text> <p> </subclause></clause></subparagraph><subparagraph id="idDCE0BF564A26483BBC6C600E0D11EAA2"><enum>(C)</enum><header>Reduction for post-2008 <p> foreign oil and gas losses</header><text>The reduction under this paragraph <p> shall be equal to the lesser of—</text> <p> <clause id="idA15EB1905C8941F191A4DF095FE8CC82"><enum>(i)</enum><text>the combined foreign oil <p> and gas income of the taxpayer for the taxable year (determined without regard <p> to this paragraph), reduced by an amount equal to the reduction under <p> subparagraph (A) for the taxable year, or</text> <p> </clause><clause id="idD56B9FA6E2D84299AABF66C26EA7CDA5"><enum>(ii)</enum><text>the excess of—</text> <p> <subclause id="idF711D0C54A754642A619FB9DC25F3103"><enum>(I)</enum><text>the aggregate amount of <p> foreign oil and gas losses for preceding taxable years beginning after December <p> 31, 2008, over</text> <p> </subclause><subclause id="id99B5D755FAF14DDDABE01E0423277ABE"><enum>(II)</enum><text>so much of such <p> aggregate amount as was recharacterized under this paragraph for preceding <p> taxable years beginning after December 31, 2008.</text> <p> </subclause></clause></subparagraph><subparagraph id="id53F2E7D468B849A396EC89B3C412C003"><enum>(D)</enum><header>Foreign oil and gas <p> loss defined</header> <p> <clause id="id89F919E737D440169CE3EB064E66B27C"><enum>(i)</enum><header>In <p> general</header><text>For purposes of this paragraph, the term <term>foreign <p> oil and gas loss</term> means the amount by which—</text> <p> <subclause id="id37F8A986865847D9BA4DFEB19F5D0BF5"><enum>(I)</enum><text>the gross income for the <p> taxable year from sources without the United States and its possessions <p> (whether or not the taxpayer chooses the benefits of this subpart for such <p> taxable year) taken into account in determining the combined foreign oil and <p> gas income for such year, is exceeded by</text> <p> </subclause><subclause id="idD89FAA489AB141B9A83EB8A3E967E7C0"><enum>(II)</enum><text>the sum of the <p> deductions properly apportioned or allocated thereto.</text> <p> </subclause></clause><clause id="idAD11666329B94DF7B927A100FD50D7C0"><enum>(ii)</enum><header>Net operating loss <p> deduction not taken into account</header><text>For purposes of clause (i), the <p> net operating loss deduction allowable for the taxable year under section <p> 172(a) shall not be taken into account.</text> <p> </clause><clause id="idD239427337DE4E259DEF7B487AD59301"><enum>(iii)</enum><header>Expropriation and <p> casualty losses not taken into account</header><text>For purposes of clause <p> (i), there shall not be taken into account—</text> <p> <subclause id="id0FCD9F9D02F24829820ABB95E8847C7E"><enum>(I)</enum><text>any foreign expropriation <p> loss (as defined in section 172(h) (as in effect on the day before the date of <p> the enactment of the Revenue Reconciliation Act of 1990)) for the taxable year, <p> or</text> <p> </subclause><subclause id="idE3DF8E8ED09D42A4BB496D4F1479C8E1"><enum>(II)</enum><text>any loss for the taxable <p> year which arises from fire, storm, shipwreck, or other casualty, or from <p> theft,</text> <p> </subclause><continuation-text continuation-text-level="clause">to the extent such loss is not <p> compensated for by insurance or otherwise.</continuation-text></clause><clause id="id7CF61558086140E1BA2BAC1127C8BCAB"><enum>(iv)</enum><header>Foreign oil extraction <p> loss</header><text>For purposes of subparagraph (B)(ii)(I), foreign oil <p> extraction losses shall be determined under this paragraph as in effect on the <p> day before the date of the enactment of the <short-title>Energy Improvement and Extension Act of <p> 2008</short-title>.</text> <p> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection id="id2D00930C641840FDA34D35FAA351AACF"><enum>(c)</enum><header>Carryback and carryover <p> of disallowed credits</header><text>Section 907(f) (relating to carryback and <p> carryover of disallowed credits) is amended—</text> <p> <paragraph id="id1DB1C5A992B64C869BDA0C9D2C715B8B"><enum>(1)</enum><text>by striking <quote>oil <p> and gas extraction taxes</quote> each place it appears and inserting <p> <quote>foreign oil and gas taxes</quote>, and</text> <p> </paragraph><paragraph id="id437B924FE05F419F8B7294DCB5411CC0"><enum>(2)</enum><text>by adding at the end the <p> following new paragraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id7FA23453E20B41D1AB20F1F77C2EE0C5" reported-display-style="italic" style="OLC"> <p> <paragraph id="id6F13ABF13ACE4174A4242E1F4126358E"><enum>(4)</enum><header>Transition rules for <p> pre-2009 and 2009 disallowed credits</header> <p> <subparagraph id="idE7116ABA58ED48F4B11D4289812446EB"><enum>(A)</enum><header>Pre-2009 <p> credits</header><text>In the case of any unused credit year beginning before <p> January 1, 2009, this subsection shall be applied to any unused oil and gas <p> extraction taxes carried from such unused credit year to a year beginning after <p> December 31, 2008—</text> <p> <clause id="idF9D4E285366147AEBE9CDBF2A0CA9D02"><enum>(i)</enum><text>by substituting <p> <quote>oil and gas extraction taxes</quote> for <quote>foreign oil and gas <p> taxes</quote> each place it appears in paragraphs (1), (2), and (3), and</text> <p> </clause><clause id="idDBBE5CB5798F4CD6A1423EDDC0E613BA"><enum>(ii)</enum><text>by computing, for <p> purposes of paragraph (2)(A), the limitation under subparagraph (A) for the <p> year to which such taxes are carried by substituting <quote>foreign oil and gas <p> extraction income</quote> for <quote>foreign oil and gas income</quote> in <p> subsection (a).</text> <p> </clause></subparagraph><subparagraph id="id0320F4481F1040E4A40041867FF482A1"><enum>(B)</enum><header>2009 <p> credits</header><text>In the case of any unused credit year beginning in 2009, <p> the amendments made to this subsection by the <short-title>Energy Improvement and Extension Act of 2008</short-title> <p> shall be treated as being in effect for any preceding year beginning before <p> January 1, 2009, solely for purposes of determining how much of the unused <p> foreign oil and gas taxes for such unused credit year may be deemed paid or <p> accrued in such preceding <p> year.</text> <p> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph></subsection><subsection id="idDBFD7275C8334471814A80E2F4B68221"><enum>(d)</enum><header>Conforming <p> amendment</header><text>Section 6501(i) is amended by striking <quote>oil and <p> gas extraction taxes</quote> and inserting <quote>foreign oil and gas <p> taxes</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="id171A7790DB8E45DD8222C63014338DB1"><enum>(e)</enum><header display-inline="yes-display-inline">Effective date</header><text>The amendments <p> made by this section shall apply to taxable years beginning after December 31, <p> 2008.</text> <p> </subsection></section><section commented="no" display-inline="no-display-inline" id="id241E4F196F24418AA0CA7B57D4E61DB3" section-type="subsequent-section"><enum>403.</enum><header display-inline="yes-display-inline">Broker reporting of customer’s basis in <p> securities transactions</header> <p> <subsection commented="no" display-inline="no-display-inline" id="idD3579F8672094B4A873DED57A1717471"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="idFE64B09EC4AD4996B966326A59DA5E1F"><enum>(1)</enum><header display-inline="yes-display-inline">Broker reporting for securities <p> transactions</header><text display-inline="yes-display-inline">Section 6045 is <p> amended by adding at the end the following new subsection:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id547BD929EEA44E74B42783FB3C2EA606" reported-display-style="italic" style="OLC"> <p> <subsection commented="no" display-inline="no-display-inline" id="id1B477D8936A04E158CB4C732426ECD46"><enum>(g)</enum><header display-inline="yes-display-inline">Additional information required in the case <p> of securities transactions, etc</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="idC3B12CE17A6340FABD3B8779EF5B2051"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">If a broker is otherwise required to make a <p> return under subsection (a) with respect to the gross proceeds of the sale of a <p> covered security, the broker shall include in such return the information <p> described in paragraph (2).</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idBA762E8BDC4E43C2AC158B77CA6AA1FC"><enum>(2)</enum><header display-inline="yes-display-inline">Additional information required</header> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id4942DD8D41DF488AACFF0181F0C23EE7"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The information required under paragraph <p> (1) to be shown on a return with respect to a covered security of a customer <p> shall include the customer’s adjusted basis in such security and whether any <p> gain or loss with respect to such security is long-term or short-term (within <p> the meaning of section 1222).</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC674E1F2188A4F2A82B7668E373A3F2B"><enum>(B)</enum><header display-inline="yes-display-inline">Determination of adjusted <p> basis</header><text display-inline="yes-display-inline">For purposes of <p> subparagraph (A)—</text> <p> <clause commented="no" display-inline="no-display-inline" id="id946A65AC36C7458B9153DB7BE3830298"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The customer’s adjusted basis shall be <p> determined—</text> <p> <subclause commented="no" display-inline="no-display-inline" id="id4E2236001CEB4583A81A519E2FBC888E"><enum>(I)</enum><text display-inline="yes-display-inline">in the case of any security (other than any <p> stock for which an average basis method is permissible under section 1012), in <p> accordance with the first-in first-out method unless the customer notifies the <p> broker by means of making an adequate identification of the stock sold or <p> transferred, and</text> <p> </subclause><subclause commented="no" display-inline="no-display-inline" id="idB6B9285D6B3F43F8976E7DB8857F0725"><enum>(II)</enum><text display-inline="yes-display-inline">in the case of any stock for which an <p> average basis method is permissible under section 1012, in accordance with the <p> broker’s default method unless the customer notifies the broker that he elects <p> another acceptable method under section 1012 with respect to the account in <p> which such stock is held.</text> <p> </subclause></clause><clause commented="no" display-inline="no-display-inline" id="id6DE1C7E3722A41D1B80E8D57FFEAF519"><enum>(ii)</enum><header display-inline="yes-display-inline">Exception for wash sales</header><text display-inline="yes-display-inline">Except as otherwise provided by the <p> Secretary, the customer’s adjusted basis shall be determined without regard to <p> section 1091 (relating to loss from wash sales of stock or securities) unless <p> the transactions occur in the same account with respect to identical <p> securities.</text> <p> </clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9A0F7C3A01024178985580FAC9BB7B7B"><enum>(3)</enum><header display-inline="yes-display-inline">Covered security</header><text display-inline="yes-display-inline">For purposes of this subsection—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="idA0B6DEB7103A485297F369B888CB5307"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>covered security</term> <p> means any specified security acquired on or after the applicable date if such <p> security—</text> <p> <clause commented="no" display-inline="no-display-inline" id="idBD9653FD42534436886A22C0E62F070F"><enum>(i)</enum><text display-inline="yes-display-inline">was acquired through a transaction in the <p> account in which such security is held, or</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="id3F59874FC44E40CA83807C9FE9BEDC3D"><enum>(ii)</enum><text display-inline="yes-display-inline">was transferred to such account from an <p> account in which such security was a covered security, but only if the broker <p> received a statement under section 6045A with respect to the transfer.</text> <p> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id093F791239404529977034974A7077E1"><enum>(B)</enum><header display-inline="yes-display-inline">Specified security</header><text display-inline="yes-display-inline">The term <term>specified security</term> <p> means—</text> <p> <clause commented="no" display-inline="no-display-inline" id="idBB37E7FE3258481FA090CFA83C8A51D6"><enum>(i)</enum><text display-inline="yes-display-inline">any share of stock in a corporation,</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="id341A6EEB14924F5F95F739C8A7E1EAC1"><enum>(ii)</enum><text display-inline="yes-display-inline">any note, bond, debenture, or other <p> evidence of indebtedness,</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="idF657F3B164C8491CB387B1829F14B7A0"><enum>(iii)</enum><text display-inline="yes-display-inline">any commodity, or contract or derivative <p> with respect to such commodity, if the Secretary determines that adjusted basis <p> reporting is appropriate for purposes of this subsection, and</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="idEBA3661C86E2423BBDAEEADC1A9AFD92"><enum>(iv)</enum><text display-inline="yes-display-inline">any other financial instrument with respect <p> to which the Secretary determines that adjusted basis reporting is appropriate <p> for purposes of this subsection.</text> <p> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id98031B5863024D6D9C52862D6ABA6CBB"><enum>(C)</enum><header display-inline="yes-display-inline">Applicable date</header><text display-inline="yes-display-inline">The term <term>applicable date</term> <p> means—</text> <p> <clause commented="no" display-inline="no-display-inline" id="id77ED729101134EEBA187BC5F37726387"><enum>(i)</enum><text display-inline="yes-display-inline">January 1, 2011, in the case of any <p> specified security which is stock in a corporation (other than any stock <p> described in clause (ii)),</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="id24C77A3C9A4B4F9280D33AF0106A9473"><enum>(ii)</enum><text display-inline="yes-display-inline">January 1, 2012, in the case of any stock <p> for which an average basis method is permissible under section 1012, and</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="idC9CA80DE30E748D0A7C6FE3542F051D3"><enum>(iii)</enum><text display-inline="yes-display-inline">January 1, 2013, or such later date <p> determined by the Secretary in the case of any other specified security.</text> <p> </clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idB2D9FB320F984CA597D85F6C604CAFDF"><enum>(4)</enum><header display-inline="yes-display-inline">Treatment of S corporations</header><text display-inline="yes-display-inline">In the case of the sale of a covered <p> security acquired by an S corporation (other than a financial institution) <p> after December 31, 2011, such S corporation shall be treated in the same manner <p> as a partnership for purposes of this section.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id3BE70CC950B347D7B9DAE7821E648EB8"><enum>(5)</enum><header display-inline="yes-display-inline">Special rules for short sales</header><text display-inline="yes-display-inline">In the case of a short sale, reporting <p> under this section shall be made for the year in which such sale is <p> closed.</text> <p> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA98D8FBC8C4A4EC1B618F7FB8BD3970D"><enum>(2)</enum><header display-inline="yes-display-inline">Broker information required with respect to <p> options</header><text display-inline="yes-display-inline">Section 6045, as <p> amended by subsection (a), is amended by adding at the end the following new <p> subsection:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idD7C5BE507D8C4335B426B26966371BD6" reported-display-style="italic" style="OLC"> <p> <subsection commented="no" display-inline="no-display-inline" id="idC633326569E74BA1BA4057DCA8E206A1"><enum>(h)</enum><header display-inline="yes-display-inline">Application to options on <p> securities</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="id7EA317DB914B43C6BDB17518F3B5A09E"><enum>(1)</enum><header display-inline="yes-display-inline">Exercise of option</header><text display-inline="yes-display-inline">For purposes of this section, if a covered <p> security is acquired or disposed of pursuant to the exercise of an option that <p> was granted or acquired in the same account as the covered security, the amount <p> received with respect to the grant or paid with respect to the acquisition of <p> such option shall be treated as an adjustment to gross proceeds or as an <p> adjustment to basis, as the case may be.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idBB539BC8F35C4FC48951EB3B18555580"><enum>(2)</enum><header display-inline="yes-display-inline">Lapse or closing transaction</header><text display-inline="yes-display-inline">In the case of the lapse (or closing <p> transaction (as defined in section 1234(b)(2)(A))) of an option on a specified <p> security or the exercise of a cash-settled option on a specified security, <p> reporting under subsections (a) and (g) with respect to such option shall be <p> made for the calendar year which includes the date of such lapse, closing <p> transaction, or exercise.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8E61C37737B540C3921283590BA5278F"><enum>(3)</enum><header display-inline="yes-display-inline">Prospective application</header><text display-inline="yes-display-inline">Paragraphs (1) and (2) shall not apply to <p> any option which is granted or acquired before January 1, 2013.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2A56B9FD72C3419F8B037012A1646E8F"><enum>(4)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this subsection, the terms <p> <term>covered security</term> and <term>specified security</term> shall have <p> the meanings given such terms in subsection <p> (g)(3).</text> <p> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4FB54CF6CA5343C191682037B122836A"><enum>(3)</enum><header display-inline="yes-display-inline">Extension of period for statements sent to <p> customers</header> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id0235B05D15AC435E9A9EA5832220B2E2"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsection (b) of section 6045 is amended <p> by striking <quote>January 31</quote> and inserting <quote>February <p> 15</quote>.</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id90CA5A2377DD468FA75835FCBC904EB9"><enum>(B)</enum><header display-inline="yes-display-inline">Statements related to substitute <p> payments</header><text display-inline="yes-display-inline">Subsection (d) of <p> section 6045 is amended—</text> <p> <clause commented="no" display-inline="no-display-inline" id="id3A58EA23988C4C6A9099F915919C5208"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>at such time <p> and</quote>, and</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="id7511DA95348548FAA8864980073BB245"><enum>(ii)</enum><text display-inline="yes-display-inline">by inserting after <quote>other <p> item.</quote> the following new sentence: <quote>The written statement required <p> under the preceding sentence shall be furnished on or before February 15 of the <p> year following the calendar year in which the payment was made.</quote>.</text> <p> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idAD7CF991EF3C41228B105E51269A4389"><enum>(C)</enum><header display-inline="yes-display-inline">Other statements</header><text display-inline="yes-display-inline">Subsection (b) of section 6045 is amended <p> by adding at the end the following: <quote>In the case of a consolidated <p> reporting statement (as defined in regulations) with respect to any customer, <p> any statement which would otherwise be required to be furnished on or before <p> January 31 of a calendar year with respect to any item reportable to the <p> taxpayer shall instead be required to be furnished on or before February 15 of <p> such calendar year if furnished with such consolidated reporting <p> statement.</quote>.</text> <p> </subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id537DB928B49E40F0B59C46F274A8B36B"><enum>(b)</enum><header display-inline="yes-display-inline">Determination of basis of certain <p> securities on account by account or average basis method</header><text display-inline="yes-display-inline">Section 1012 is amended—</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="id5197949F4EBC4C00953C952C4B651A8D"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>The basis of <p> property</quote> and inserting the following:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idC3D39791CC47491792BC97F833C8035F" reported-display-style="italic" style="OLC"> <p> <subsection commented="no" display-inline="no-display-inline" id="id972EE0C88B354BB39DAED64B863D70C8"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The basis of <p> property</text> <p> </subsection><after-quoted-block>,</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2D3BD447358A4F66BBDBB15DF169F98B"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>The cost of real <p> property</quote> and inserting the following:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id280EDF632CDB46D59496E10FDD61AEF5" reported-display-style="italic" style="OLC"> <p> <subsection commented="no" display-inline="no-display-inline" id="id9D1E6690E9A842BEB9A630169A193F0B"><enum>(b)</enum><header display-inline="yes-display-inline">Special rule for apportioned real estate <p> taxes</header><text display-inline="yes-display-inline">The cost of real <p> property</text> <p> </subsection><after-quoted-block>, <p> and</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA083B04C7496420B87024265A69A6BC8"><enum>(3)</enum><text display-inline="yes-display-inline">by adding at the end the following new <p> subsections:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id47E4336897644A36AFEF802F075BDF41" reported-display-style="italic" style="OLC"> <p> <subsection commented="no" display-inline="no-display-inline" id="idF6323B4D4C704A388EEC479EA228528B"><enum>(c)</enum><header display-inline="yes-display-inline">Determinations by account</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="id25FCE87CF250440B8D56C9B080BA8D0C"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In the case of the sale, exchange, or other <p> disposition of a specified security on or after the applicable date, the <p> conventions prescribed by regulations under this section shall be applied on an <p> account by account basis.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA657DE83BBB34B759692BA8B3ADCB158"><enum>(2)</enum><header display-inline="yes-display-inline">Application to certain funds</header> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id9D1792F80A9F4564AECA85D7681DA493"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in subparagraph (B), any <p> stock for which an average basis method is permissible under section 1012 which <p> is acquired before January 1, 2012, shall be treated as a separate account from <p> any such stock acquired on or after such date.</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id9860AA42781D4F5AB8CCD6925111A3ED"><enum>(B)</enum><header display-inline="yes-display-inline">Election fund for treatment as single <p> account</header><text display-inline="yes-display-inline">If a fund described <p> in subparagraph (A) elects to have this subparagraph apply with respect to one <p> or more of its stockholders—</text> <p> <clause commented="no" display-inline="no-display-inline" id="idB530D53812ED42F19DEDF315D16F0B0A"><enum>(i)</enum><text display-inline="yes-display-inline">subparagraph (A) shall not apply with <p> respect to any stock in such fund held by such stockholders, and</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="id213DFA15F513488E9958D7DBB029D363"><enum>(ii)</enum><text display-inline="yes-display-inline">all stock in such fund which is held by <p> such stockholders shall be treated as covered securities described in section <p> 6045(g)(3) without regard to the date of the acquisition of such stock.</text> <p> </clause><continuation-text commented="no" continuation-text-level="subparagraph">A <p> rule similar to the rule of the preceding sentence shall apply with respect to <p> a broker holding such stock as a nominee.</continuation-text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id69E15177B1FE459ABC62EE13E192C617"><enum>(3)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this section, the terms <p> <term>specified security</term> and <term>applicable date</term> shall have the <p> meaning given such terms in section 6045(g).</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id4A1DF755307544439A41D3A06D2041DF"><enum>(d)</enum><header display-inline="yes-display-inline">Average basis for stock acquired pursuant <p> to a dividend reinvestment plan</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="id6E19A53AE19F4B848F8403392AC6AE22"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In the case of any stock acquired after <p> December 31, 2010, in connection with a dividend reinvestment plan, the basis <p> of such stock while held as part of such plan shall be determined using one of <p> the methods which may be used for determining the basis of stock in an open-end <p> fund.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id267C6CF3D6644E4FA4AB66EB2C0C9C0D"><enum>(2)</enum><header display-inline="yes-display-inline">Treatment after transfer</header><text display-inline="yes-display-inline">In the case of the transfer to another <p> account of stock to which paragraph (1) applies, such stock shall have a cost <p> basis in such other account equal to its basis in the dividend reinvestment <p> plan immediately before such transfer (properly adjusted for any fees or other <p> charges taken into account in connection with such transfer).</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6E5975E7F1D2462494C2D9AA8A425920"><enum>(3)</enum><header display-inline="yes-display-inline">Separate accounts; election for treatment <p> as single account</header><text display-inline="yes-display-inline">Rules <p> similar to the rules of subsection (c)(2) shall apply for purposes of this <p> subsection.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA1BB61B3B03B4524B53097BF38648E22"><enum>(4)</enum><header display-inline="yes-display-inline">Dividend reinvestment plan</header><text display-inline="yes-display-inline">For purposes of this subsection—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="idD69D44DB1FF4480DBB25693C3CFB60E1"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>dividend reinvestment <p> plan</term> means any arrangement under which dividends on any stock are <p> reinvested in stock identical to the stock with respect to which the dividends <p> are paid.</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id73EFA01E8E544DC4ADC3CB3CB4EE5735"><enum>(B)</enum><header display-inline="yes-display-inline">Initial stock acquisition treated as <p> acquired in connection with plan</header><text display-inline="yes-display-inline">Stock shall be treated as acquired in <p> connection with a dividend reinvestment plan if such stock is acquired pursuant <p> to such plan or if the dividends paid on such stock are subject to such <p> plan.</text> <p> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id34AE3F158754416680186978E8040D57"><enum>(c)</enum><header display-inline="yes-display-inline">Information by transferors To aid <p> brokers</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="idC20721FEC998458BA97B0FBACD670E24"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subpart B of part III of subchapter A of <p> chapter 61 is amended by inserting after section 6045 the following new <p> section:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idB7346BCCCF4745108BAFE9B37D11D796" reported-display-style="italic" style="OLC"> <p> <section commented="no" display-inline="no-display-inline" id="id494A4973670D42299D0915FA12C2132E" section-type="subsequent-section"><enum>6045A.</enum><header display-inline="yes-display-inline">Information required in connection with <p> transfers of covered securities to brokers</header> <p> <subsection commented="no" display-inline="no-display-inline" id="id3A37972B2EDB4DF9B6EFBB08EEA02246"><enum>(a)</enum><header display-inline="yes-display-inline">Furnishing of information</header><text display-inline="yes-display-inline">Every applicable person which transfers to <p> a broker (as defined in section 6045(c)(1)) a security which is a covered <p> security (as defined in section 6045(g)(3)) in the hands of such applicable <p> person shall furnish to such broker a written statement in such manner and <p> setting forth such information as the Secretary may by regulations prescribe <p> for purposes of enabling such broker to meet the requirements of section <p> 6045(g).</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="idBCAE92716AC941329C43F3229FCE5567"><enum>(b)</enum><header display-inline="yes-display-inline">Applicable person</header><text display-inline="yes-display-inline">For purposes of subsection (a), the term <p> <term>applicable person</term> means—</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="id3BA09FFC547C455D9427F1F26F0F97F6"><enum>(1)</enum><text display-inline="yes-display-inline">any broker (as defined in section <p> 6045(c)(1)), and</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id464063B2FB2147A88BE9DC900CD7D752"><enum>(2)</enum><text display-inline="yes-display-inline">any other person as provided by the <p> Secretary in regulations.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idE99CD05900E544049DA1250B445CFC75"><enum>(c)</enum><header display-inline="yes-display-inline">Time for furnishing statement</header><text display-inline="yes-display-inline">Except as otherwise provided by the <p> Secretary, any statement required by subsection (a) shall be furnished not <p> later than 15 days after the date of the transfer described in such <p> subsection.</text> <p> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9BF0CF7C32A7450B94262FACC2A86DD2"><enum>(2)</enum><header display-inline="yes-display-inline">Assessable penalties</header><text display-inline="yes-display-inline">Paragraph (2) of section 6724(d), as <p> amended by the Housing Assistance Tax Act of 2008, is amended by redesignating <p> subparagraphs (I) through (DD) as subparagraphs (J) through (EE), respectively, <p> and by inserting after subparagraph (H) the following new subparagraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idEFE25F141442415FB2BBBBA29A22A4E7" reported-display-style="italic" style="OLC"> <p> <subparagraph commented="no" display-inline="no-display-inline" id="idA2299EE0AD254EE4A5317A02DCBE9BD4"><enum>(I)</enum><text display-inline="yes-display-inline">section 6045A (relating to information <p> required in connection with transfers of covered securities to <p> brokers),</text> <p> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6389242E73E64180A76E1772DDE7A42F"><enum>(3)</enum><header display-inline="yes-display-inline">Clerical amendment</header><text display-inline="yes-display-inline">The table of sections for subpart B of part <p> III of subchapter A of chapter 61 is amended by inserting after the item <p> relating to section 6045 the following new item:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id9F7D3B0A06414E00B4E934202B355371" reported-display-style="italic" style="OLC"> <p> <toc changed="added" regeneration="no-regeneration" reported-display-style="italic"> <p> <toc-entry bold="off" level="section">Sec. 6045A. Information required in connection <p> with transfers of covered securities to <p> brokers.</toc-entry> <p> </toc> <p> <after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id74CDCA8664264E4FA105FAF121A9667B"><enum>(d)</enum><header display-inline="yes-display-inline">Additional issuer information To aid <p> brokers</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="id9AD5F4736EAA41C88754786ABBF72342"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subpart B of part III of subchapter A of <p> chapter 61, as amended by subsection (b), is amended by inserting after section <p> 6045A the following new section:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idF223B4ABC7CD465085310F5A594E29C2" reported-display-style="italic" style="OLC"> <p> <section commented="no" display-inline="no-display-inline" id="id0C2277AF3C514502B9931BBE136ED56D" section-type="subsequent-section"><enum>6045B.</enum><header display-inline="yes-display-inline">Returns relating to actions affecting basis <p> of specified securities</header> <p> <subsection commented="no" display-inline="no-display-inline" id="idB7D4EBBF698A405D8A9D257997BB0967"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">According to the forms or regulations <p> prescribed by the Secretary, any issuer of a specified security shall make a <p> return setting forth—</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="id652CD76ABE2B46D19DCA5FA621A244C9"><enum>(1)</enum><text display-inline="yes-display-inline">a description of any organizational action <p> which affects the basis of such specified security of such issuer,</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idD1647AA6B6724DF594D9F3B955BD4E17"><enum>(2)</enum><text display-inline="yes-display-inline">the quantitative effect on the basis of <p> such specified security resulting from such action, and</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idD1D6D782D51848DD8F6C2FED23304628"><enum>(3)</enum><text display-inline="yes-display-inline">such other information as the Secretary may <p> prescribe.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idC4172A1BBBFF4904ADE169C75AB28E00"><enum>(b)</enum><header display-inline="yes-display-inline">Time for filing return</header><text display-inline="yes-display-inline">Any return required by subsection (a) shall <p> be filed not later than the earlier of—</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="idCC6282CB967146A688CCA9E3064B0E95"><enum>(1)</enum><text display-inline="yes-display-inline">45 days after the date of the action <p> described in subsection (a), or</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id89E1FC11DA4744519E3A633604D7353A"><enum>(2)</enum><text display-inline="yes-display-inline">January 15 of the year following the <p> calendar year during which such action occurred.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id14C75FCE0A984598A4C21E65E1118C2F"><enum>(c)</enum><header display-inline="yes-display-inline">Statements To be furnished to holders of <p> specified securities or their nominees</header><text display-inline="yes-display-inline">According to the forms or regulations <p> prescribed by the Secretary, every person required to make a return under <p> subsection (a) with respect to a specified security shall furnish to the <p> nominee with respect to the specified security (or certificate holder if there <p> is no nominee) a written statement showing—</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="id098294D1B0544F3FAD943ADA925EB8B5"><enum>(1)</enum><text display-inline="yes-display-inline">the name, address, and phone number of the <p> information contact of the person required to make such return,</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA659EFAE9B3544F8B42487B6D30EFAFD"><enum>(2)</enum><text display-inline="yes-display-inline">the information required to be shown on <p> such return with respect to such security, and</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idB3088DED75454483B991D7009AE78C13"><enum>(3)</enum><text display-inline="yes-display-inline">such other information as the Secretary may <p> prescribe.</text> <p> </paragraph><continuation-text commented="no" continuation-text-level="subsection">The <p> written statement required under the preceding sentence shall be furnished to <p> the holder on or before January 15 of the year following the calendar year <p> during which the action described in subsection (a) occurred.</continuation-text></subsection><subsection commented="no" display-inline="no-display-inline" id="idF31A98169D904CF5B99EFFA170E18868"><enum>(d)</enum><header display-inline="yes-display-inline">Specified security</header><text display-inline="yes-display-inline">For purposes of this section, the term <p> <term>specified security</term> has the meaning given such term by section <p> 6045(g)(3)(B). No return shall be required under this section with respect to <p> actions described in subsection (a) with respect to a specified security which <p> occur before the applicable date (as defined in section 6045(g)(3)(C)) with <p> respect to such security.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="id7FDCB440B48E467990A8CC7BEBBDF013"><enum>(e)</enum><header display-inline="yes-display-inline">Public reporting in lieu of <p> return</header><text display-inline="yes-display-inline">The Secretary may <p> waive the requirements under subsections (a) and (c) with respect to a <p> specified security, if the person required to make the return under subsection <p> (a) makes publicly available, in such form and manner as the Secretary <p> determines necessary to carry out the purposes of this section—</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="idDB9E88E51B4348A1A00D64A97D2A6919"><enum>(1)</enum><text display-inline="yes-display-inline">the name, address, phone number, and email <p> address of the information contact of such person, and</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id3F0572F8A8D6468BB7C13F2ECD1FC807"><enum>(2)</enum><text display-inline="yes-display-inline">the information described in paragraphs <p> (1), (2), and (3) of subsection <p> (a).</text> <p> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id07B28C227D3144A78B52B0A800A59FF9"><enum>(2)</enum><header display-inline="yes-display-inline">Assessable penalties</header> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id5C2DF9255B4C41FAB690B9B72668985F"><enum>(A)</enum><text display-inline="yes-display-inline">Subparagraph (B) of section 6724(d)(1), as <p> amended by the Housing Assistance Tax Act of 2008, is amended by redesignating <p> clause (iv) and each of the clauses which follow as clauses (v) through <p> (xxiii), respectively, and by inserting after clause (iii) the following new <p> clause:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idFE2B71B994734E249A56386C53ECFCB1" reported-display-style="italic" style="OLC"> <p> <clause commented="no" display-inline="no-display-inline" id="idDCF11C6360EC4AA497B94D439906BCEB"><enum>(iv)</enum><text display-inline="yes-display-inline">section 6045B(a) (relating to returns <p> relating to actions affecting basis of specified <p> securities),</text> <p> </clause><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id656AC575BDD64F2E8836520A41C1C760"><enum>(B)</enum><text display-inline="yes-display-inline">Paragraph (2) of section 6724(d), as <p> amended by the Housing Assistance Tax Act of 2008 and by subsection (c)(2), is <p> amended by redesignating subparagraphs (J) through (EE) as subparagraphs (K) <p> through (FF), respectively, and by inserting after subparagraph (I) the <p> following new subparagraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id98482434F6254660A47B6B5BD40F5821" reported-display-style="italic" style="OLC"> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id7FF252D1EE1F4E9DAA3F83FAB62365FA"><enum>(J)</enum><text display-inline="yes-display-inline">subsections (c) and (e) of section 6045B <p> (relating to returns relating to actions affecting basis of specified <p> securities),</text> <p> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF383386A0D8846A782AEFAFD9E4A4B1A"><enum>(3)</enum><header display-inline="yes-display-inline">Clerical amendment</header><text display-inline="yes-display-inline">The table of sections for subpart B of part <p> III of subchapter A of chapter 61, as amended by subsection (b)(3), is amended <p> by inserting after the item relating to section 6045A the following new <p> item:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idE80B8FA1162742408286BBEDD5BEDDFF" reported-display-style="italic" style="OLC"> <p> <toc changed="added" regeneration="no-regeneration" reported-display-style="italic"> <p> <toc-entry bold="off" level="section">Sec. 6045B. Returns relating to actions <p> affecting basis of specified <p> securities.</toc-entry> <p> </toc> <p> <after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idCEF97A99C48343A5A9A1D79821744352"><enum>(e)</enum><header display-inline="yes-display-inline">Effective date</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="id1BEB73B95F414770A1833BC556FA8937"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as otherwise provided in this <p> subsection, the amendments made by this section shall take effect on January 1, <p> 2011.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id005095EF4A0247B6A212978509AA34A2"><enum>(2)</enum><header display-inline="yes-display-inline">Extension of period for statements sent to <p> customers</header><text display-inline="yes-display-inline">The amendments made <p> by subsection (a)(3) shall apply to statements required to be furnished after <p> December 31, 2008.</text> <p> </paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="idC1BC2E98F818449F9C9765E25D053DE7"><enum>404.</enum><header>0.2 percent FUTA <p> surtax</header> <p> <subsection commented="no" display-inline="no-display-inline" id="id09D3FEC3777C41238EB832A0B24A322B"><enum>(a)</enum><header>In <p> general</header><text>Section 3301 (relating to rate of tax) is amended—</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="idC149ABFB3BF34D348EC60B31D8ED3B5E"><enum>(1)</enum><text>by striking <p> <quote>through 2008</quote> in paragraph (1) and inserting <quote>through <p> 2009</quote>, and</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4DB01954DC984A248025F4C972908069"><enum>(2)</enum><text>by striking <p> <quote>calendar year 2009</quote> in paragraph (2) and inserting <p> <quote>calendar year 2010</quote>.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id5AAE16FC3BB74F1C86772D4351478FFF"><enum>(b)</enum><header>Effective <p> date</header><text>The amendments made by this section shall apply to wages <p> paid after December 31, 2008.</text> <p> </subsection></section><section commented="no" display-inline="no-display-inline" id="id17038F2BC56B469EB4B28F2470119A73"><enum>405.</enum><header>Increase and extension <p> of Oil Spill Liability Trust Fund tax</header> <p> <subsection commented="no" display-inline="no-display-inline" id="idC66C4EE020134C848AE9CE151754F7CB"><enum>(a)</enum><header>Increase in <p> rate</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="idD68EBFFC94B348299AA49A3DDBAE73B1"><enum>(1)</enum><header>In <p> general</header><text>Section 4611(c)(2)(B) (relating to rates) is amended by <p> striking <quote>is 5 cents a barrel.</quote> and <p> inserting</text> <p> <quoted-block changed="added" display-inline="yes-display-inline" id="idA82F0DB66C874CE3B7A61755B58AF468" reported-display-style="italic" style="OLC"> <p> <text>is—</text><clause commented="no" display-inline="no-display-inline" id="id96F67BE8448346349A493D00B19D7A44"><enum>(i)</enum><text>in the case of crude oil <p> received or petroleum products entered before January 1, 2017, 8 cents a <p> barrel, and</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="idFA02A8D84A904E0FB2A92978B6C10E69"><enum>(ii)</enum><text>in the case of crude oil <p> received or petroleum products entered after December 31, 2016, 9 cents a <p> barrel.</text> <p> </clause><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id82129EEE1408407C946F1805F763C4AF"><enum>(2)</enum><header>Effective <p> date</header><text>The amendment made by this subsection shall apply on and <p> after the first day of the first calendar quarter beginning more than 60 days <p> after the date of the enactment of this Act.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id3C7BDC25D6CE44008215960FB39D2DF7"><enum>(b)</enum><header>Extension</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="idC028B5A6457A4E469643F7DD032ACBD0"><enum>(1)</enum><header>In <p> general</header><text>Section 4611(f) (relating to application of Oil Spill <p> Liability Trust Fund financing rate) is amended by striking paragraphs (2) and <p> (3) and inserting the following new paragraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id6691D90F8CA0436FA49A7C1DD7590479" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" display-inline="no-display-inline" id="idE0E222046207489286D475C5C0765521"><enum>(2)</enum><header>Termination</header><text>The <p> Oil Spill Liability Trust Fund financing rate shall not apply after December <p> 31, <p> 2017.</text> <p> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idBBDE02E418264B1FB8E5BC2E36099680"><enum>(2)</enum><header>Conforming <p> amendment</header><text>Section 4611(f)(1) is amended by striking <p> <quote>paragraphs (2) and (3)</quote> and inserting <quote>paragraph <p> (2)</quote>.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF750E6D570754A01A1EC180F1C26D0A3"><enum>(3)</enum><header>Effective <p> date</header><text>The amendments made by this subsection shall take effect on <p> the date of the enactment of this Act.</text> <p> </paragraph></subsection></section>
C
Tax extenders and

alternative minimum tax relief

1.
Short title; amendment of

1986 Code; table of contents

(a)

Short

title

This division may be cited as the Tax Extenders and Alternative Minimum Tax Relief Act of

2008.

(b)

Amendment of 1986

Code

Except as otherwise

expressly provided, whenever in this division an amendment or repeal is

expressed in terms of an amendment to, or repeal of, a section or other

provision, the reference shall be considered to be made to a section or other

provision of the Internal Revenue Code of 1986.

(c)

Table of

contents

The table of contents of this division is as

follows:

Sec. 1. Short title; amendment

of 1986 Code; table of contents.

TITLE I—Alternative minimum tax

relief

Sec. 101. Extension of

alternative minimum tax relief for nonrefundable personal credits.

Sec. 102. Extension of

increased alternative minimum tax exemption amount.

Sec. 103. Increase of AMT

refundable credit amount for individuals with long-term unused credits for

prior year minimum tax liability, etc.

TITLE II—Extension of individual

tax provisions

Sec. 201. Deduction for State

and local sales taxes.

Sec. 202. Deduction of

qualified tuition and related expenses.

Sec. 203. Deduction for certain

expenses of elementary and secondary school teachers.

Sec. 204. Additional standard

deduction for real property taxes for nonitemizers.

Sec. 205. Tax-free

distributions from individual retirement plans for charitable

purposes.

Sec. 206. Treatment of certain

dividends of regulated investment companies.

Sec. 207. Stock in RIC for

purposes of determining estates of nonresidents not citizens.

Sec. 208. Qualified investment

entities.

TITLE III—Extension of business

tax provisions

Sec. 301. Extension and

modification of research credit.

Sec. 302. New markets tax

credit.

Sec. 303. Subpart

F exception for active financing

income.

Sec. 304. Extension of

look-thru rule for related controlled foreign corporations.

Sec. 305. Extension of 15-year

straight-line cost recovery for qualified leasehold improvements and qualified

restaurant improvements; 15-year straight-line cost recovery for certain

improvements to retail space.

Sec. 306. Modification of tax

treatment of certain payments to controlling exempt organizations.

Sec. 307. Basis adjustment to

stock of S corporations making charitable contributions of

property.

Sec. 308. Increase in limit on

cover over of rum excise tax to Puerto Rico and the Virgin Islands.

Sec. 309. Extension of economic

development credit for American Samoa.

Sec. 310. Extension of mine

rescue team training credit.

Sec. 311. Extension of election

to expense advanced mine safety equipment.

Sec. 312. Deduction allowable

with respect to income attributable to domestic production activities in Puerto

Rico.

Sec. 313. Qualified zone

academy bonds.

Sec. 314. Indian employment

credit.

Sec. 315. Accelerated

depreciation for business property on Indian reservations.

Sec. 316. Railroad track

maintenance.

Sec. 317. Seven-year cost

recovery period for motorsports racing track facility.

Sec. 318. Expensing of

environmental remediation costs.

Sec. 319. Extension of work

opportunity tax credit for Hurricane Katrina employees.

Sec. 320. Extension of

increased rehabilitation credit for structures in the Gulf Opportunity

Zone.

Sec. 321. Enhanced deduction

for qualified computer contributions.

Sec. 322. Tax incentives for

investment in the District of Columbia.

Sec. 323. Enhanced charitable

deductions for contributions of food inventory.

Sec. 324. Extension of enhanced

charitable deduction for contributions of book inventory.

Sec. 325. Extension and

modification of duty suspension on wool products; wool research fund; wool duty

refunds.

TITLE IV—Extension of tax

administration provisions

Sec. 401. Permanent authority

for undercover operations.

Sec. 402. Permanent authority

for disclosure of information relating to terrorist activities.

TITLE V—Additional tax relief and

other tax provisions

Subtitle A—General

provisions

Sec. 501. $8,500 income

threshold used to calculate refundable portion of child tax credit.

Sec. 502. Provisions related to

film and television productions.

Sec. 503. Exemption from excise

tax for certain wooden arrows designed for use by children.

Sec. 504. Income averaging for

amounts received in connection with the Exxon Valdez litigation.

Sec. 505. Certain farming

business machinery and equipment treated as 5-year property.

Sec. 506. Modification of

penalty on understatement of taxpayer’s liability by tax return

preparer.

Subtitle B—Paul Wellstone and

Pete Domenici Mental Health Parity and Addiction Equity Act of 2008

Sec. 511. Short

title.

Sec. 512. Mental health

parity.

TITLE VI—Other

provisions

Sec. 601. Secure rural schools

and community self-determination program.

Sec. 602. Transfer to abandoned

mine reclamation fund.

TITLE VII—Disaster

relief

Subtitle A—Heartland and

Hurricane Ike disaster relief

Sec. 701. Short

title.

Sec. 702. Temporary tax relief

for areas damaged by 2008 Midwestern severe storms, tornados, and

flooding.

Sec. 703. Reporting

requirements relating to disaster relief contributions.

Sec. 704. Temporary tax-exempt bond financing

and low-income housing tax relief for areas damaged by Hurricane

Ike.

Subtitle B—National disaster

relief

Sec. 706. Losses attributable

to federally declared disasters.

Sec. 707. Expensing of

Qualified Disaster Expenses.

Sec. 708. Net operating losses

attributable to federally declared disasters.

Sec. 709. Waiver of certain

mortgage revenue bond requirements following federally declared

disasters.

Sec. 710. Special depreciation

allowance for qualified disaster property.

Sec. 711. Increased expensing

for qualified disaster assistance property.

Sec. 712. Coordination with

Heartland disaster relief.

TITLE VIII—Spending reductions

and appropriate revenue raisers for new tax relief policy

Sec. 801. Nonqualified deferred

compensation from certain tax indifferent parties.

<enum>I</enum><header>Alternative minimum tax <p> relief</header> <p> <section id="H57DC299C7B1245FEBE481139B8F237A6"><enum>101.</enum><header>Extension of <p> alternative minimum tax relief for nonrefundable personal credits</header> <p> <subsection id="HEC363C8528CC4D64ADE77577C7B3F5B3"><enum>(a)</enum><header>In <p> general</header><text>Paragraph (2) of section 26(a) (relating to special rule <p> for taxable years 2000 through 2007) is amended—</text> <p> <paragraph id="HB37EAC7763544FEFBF8EBE5127100076"><enum>(1)</enum><text>by striking <quote>or <p> 2007</quote> and inserting <quote>2007, or 2008</quote>, and</text> <p> </paragraph><paragraph id="H0753F138348F4CDDA5C28B350027ECAD"><enum>(2)</enum><text>by striking <p> <quote><header-in-text level="paragraph" style="OLC">2007</header-in-text></quote> in the heading thereof and inserting <p> <quote><header-in-text level="paragraph" style="OLC">2008</header-in-text></quote>.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H6D371EEC1BE54139949E281F55C00D3"><enum>(b)</enum><header> Effective <p> date</header><text>The amendments made by this section shall apply to taxable <p> years beginning after December 31, 2007.</text> <p> </subsection></section><section display-inline="no-display-inline" id="H31808C50F0D041CCACF2EA2731CBB8" section-type="subsequent-section"><enum>102.</enum><header>Extension of <p> increased alternative minimum tax exemption amount</header> <p> <subsection id="HF61F3B9876424A85B5D9ADE858368D6C"><enum>(a)</enum><header>In <p> general</header><text>Paragraph (1) of section 55(d) (relating to exemption <p> amount) is amended—</text> <p> <paragraph id="HAF91B01B4DE6433EBDDE6CD6E82FEBC7"><enum>(1)</enum><text>by striking <p> <quote>($66,250 in the case of taxable years beginning in 2007)</quote> in <p> subparagraph (A) and inserting <quote>($69,950 in the case of taxable years <p> beginning in 2008)</quote>, and</text> <p> </paragraph><paragraph id="H5C96436946D04E84B9A074D1784DCEC9"><enum>(2)</enum><text>by striking <p> <quote>($44,350 in the case of taxable years beginning in 2007)</quote> in <p> subparagraph (B) and inserting <quote>($46,200 in the case of taxable years <p> beginning in 2008)</quote>.</text> <p> </paragraph></subsection><subsection id="H0D21C9D2E96A4E2F00E7FD74BFEAD2F6"><enum>(b)</enum><header>Effective <p> date</header><text>The amendments made by this section shall apply to taxable <p> years beginning after December 31, 2007.</text> <p> </subsection></section><section commented="no" display-inline="no-display-inline" id="H889FD4781B23413AAE6F00B7EF615661" section-type="subsequent-section"><enum>103.</enum><header>Increase of AMT <p> refundable credit amount for individuals with long-term unused credits for <p> prior year minimum tax liability, etc</header> <p> <subsection commented="no" id="HC989D76FA9054A088B00AC4F4784854F"><enum>(a)</enum><header>In <p> general</header><text>Paragraph (2) of section 53(e) is amended to read as <p> follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H13221CEEF5514754A8A8B75F67008951" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" id="HB599D02DD8054F3BAD57B0CE46DBDE54"><enum>(2)</enum><header>AMT refundable credit <p> amount</header><text>For purposes of paragraph (1), the term <quote>AMT <p> refundable credit amount</quote> means, with respect to any taxable year, the <p> amount (not in excess of the long-term unused minimum tax credit for such <p> taxable year) equal to the greater of—</text> <p> <subparagraph commented="no" id="H8ECFB40F7B234A96B37EC1A452A158FA"><enum>(A)</enum><text>50 percent of the <p> long-term unused minimum tax credit for such taxable year, or</text> <p> </subparagraph><subparagraph commented="no" id="H6AC0DFF80C52410FB48799E6B5B984C1"><enum>(B)</enum><text display-inline="yes-display-inline">the amount (if any) of the AMT refundable <p> credit amount determined under this paragraph for the taxpayer’s preceding <p> taxable year (determined without regard to subsection <p> (f)(2)).</text> <p> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" id="HA212865326CD4B3881C9BD61CACD4826"><enum>(b)</enum><header>Treatment of certain <p> underpayments, interest, and penalties attributable to the treatment of <p> incentive stock options</header><text>Section 53 is amended by adding at the <p> end the following new subsection:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H6E5D2BFD1AB2410F97516469D32169B" reported-display-style="italic" style="OLC"> <p> <subsection commented="no" id="HE647EA1FEA7242E7B1FE8D458BFCD1B"><enum>(f)</enum><header>Treatment of certain <p> underpayments, interest, and penalties attributable to the treatment of <p> incentive stock options</header> <p> <paragraph commented="no" id="H66094AB325C0473BB3322C27A3DB006C"><enum>(1)</enum><header>Abatement</header><text>Any <p> underpayment of tax outstanding on the date of the enactment of this subsection <p> which is attributable to the application of section 56(b)(3) for any taxable <p> year ending before January 1, 2008, and any interest or penalty with respect to <p> such underpayment which is outstanding on such date of enactment, is hereby <p> abated. The amount determined under subsection (b)(1) shall not include any tax <p> abated under the preceding sentence.</text> <p> </paragraph><paragraph commented="no" id="HBA04668721634063A0EAF03DE7F65049"><enum>(2)</enum><header>Increase in credit for <p> certain interest and penalties already paid</header><text>The AMT refundable <p> credit amount, and the minimum tax credit determined under subsection (b), for <p> the taxpayer’s first 2 taxable years beginning after December 31, 2007, shall <p> each be increased by 50 percent of the aggregate amount of the interest and <p> penalties which were paid by the taxpayer before the date of the enactment of <p> this subsection and which would (but for such payment) have been abated under <p> paragraph <p> (1).</text> <p> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" id="H4519BA7115C84B1D96AAAA4E009502B1"><enum>(c)</enum><header>Effective date</header> <p> <paragraph commented="no" id="H36654257FAF34CAB924D482209553635"><enum>(1)</enum><header>In <p> general</header><text>Except as provided in paragraph (2), the amendments made <p> by this section shall apply to taxable years beginning after December 31, <p> 2007.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H14FE5162C5894AE197835F6E62833B6E"><enum>(2)</enum><header>Abatement</header><text>Section <p> 53(f)(1), as added by subsection (b), shall take effect on the date of the <p> enactment of this Act.</text> <p> </paragraph></subsection></section><enum>II</enum><header>Extension of individual <p> tax provisions</header> <p> <section commented="no" display-inline="no-display-inline" id="HB2FDAE35D5044852BC6056D5A46AF7B" section-type="subsequent-section"><enum>201.</enum><header>Deduction for State <p> and local sales taxes</header> <p> <subsection commented="no" id="H6384FC8E37794408B468F9AB11C56904"><enum>(a)</enum><header>In <p> general</header><text>Subparagraph (I) of section 164(b)(5) is amended by <p> striking <quote>January 1, 2008</quote> and inserting <quote>January 1, <p> 2010</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H6A642AB987A944DB90DBA4F73200002B"><enum>(b)</enum><header>Effective <p> date</header><text>The amendment made by this section shall apply to taxable <p> years beginning after December 31, 2007.</text> <p> </subsection></section><section display-inline="no-display-inline" id="H0911F6083497447BADAC09E0B98D67E8" section-type="subsequent-section"><enum>202.</enum><header>Deduction of <p> qualified tuition and related expenses</header> <p> <subsection id="H368783DD7DA3431393444914D220F212"><enum>(a)</enum><header>In <p> general</header><text>Subsection (e) of section 222 (relating to termination) <p> is amended by striking <quote>December 31, 2007</quote> and inserting <p> <quote>December 31, 2009</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H2C328B0E0ABA43FB811DB19FDF3E023D"><enum>(b)</enum><header>Effective <p> date</header><text>The amendment made by this section shall apply to taxable <p> years beginning after December 31, 2007.</text> <p> </subsection></section><section id="H406032AA87AC43E6932DE34D0265E7CB"><enum>203.</enum><header>Deduction for certain <p> expenses of elementary and secondary school teachers</header> <p> <subsection id="HF5EEB86D797845D9A215450007B3CB46"><enum>(a)</enum><header>In <p> general</header><text display-inline="yes-display-inline">Subparagraph (D) of <p> section 62(a)(2) (relating to certain expenses of elementary and secondary <p> school teachers) is amended by striking <quote>or 2007</quote> and inserting <p> <quote>2007, 2008, or 2009</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="HBC8B0662C20F442982D3CAD00DDB64"><enum>(b)</enum><header>Effective <p> date</header><text>The amendment made by subsection (a) shall apply to taxable <p> years beginning after December 31, 2007.</text> <p> </subsection></section><section commented="no" display-inline="no-display-inline" id="id2B858ECA6C6846C0B68807455BDA5C00"><enum>204.</enum><header>Additional standard <p> deduction for real property taxes for nonitemizers</header> <p> <subsection commented="no" display-inline="no-display-inline" id="idA54EE82454C54E76BB2483050EC3B1F1"><enum>(a)</enum><header>In <p> general</header><text>Subparagraph (C) of section 63(c)(1), as added by the <p> Housing Assistance Tax Act of 2008, is amended by inserting <quote>or <p> 2009</quote> after <quote>2008</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="idA517B30750E243ABAB76DE21742716B0"><enum>(b)</enum><header>Effective <p> date</header><text>The amendment made by this section shall apply to taxable <p> years beginning after December 31, 2008.</text> <p> </subsection></section><section display-inline="no-display-inline" id="HBE1ED2DFA39F4B72B75D702DCC851F82" section-type="subsequent-section"><enum>205.</enum><header>Tax-free <p> distributions from individual retirement plans for charitable purposes</header> <p> <subsection id="H043D149B7F98453BBE7D2EC237A200F0"><enum>(a)</enum><header>In <p> general</header><text>Subparagraph (F) of section 408(d)(8) (relating to <p> termination) is amended by striking <quote>December 31, 2007</quote> and <p> inserting <quote>December 31, 2009</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="HA3FD08413557463DB818980057E367BD"><enum>(b)</enum><header>Effective <p> date</header><text>The amendment made by this section shall apply to <p> distributions made in taxable years beginning after December 31, 2007.</text> <p> </subsection></section><section id="HE92E18ACDC924C128B2591CFFBAD3318"><enum>206.</enum><header>Treatment of certain <p> dividends of regulated investment companies</header> <p> <subsection id="H6571314F159F40F2AF74F07F9B99553B"><enum>(a)</enum><header>Interest-related <p> dividends</header><text>Subparagraph (C) of section 871(k)(1) (defining <p> interest-related dividend) is amended by striking <quote>December 31, <p> 2007</quote> and inserting <quote>December 31, 2009</quote>.</text> <p> </subsection><subsection display-inline="no-display-inline" id="H37A2A5EE703D42430031C9048FD3EA06"><enum>(b)</enum><header>Short-term capital gain <p> dividends</header><text display-inline="yes-display-inline">Subparagraph (C) of <p> section 871(k)(2) (defining short-term capital gain dividend) is amended by <p> striking <quote>December 31, 2007</quote> and inserting <quote>December 31, <p> 2009</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="HE71CC284151A4FF28F36E3AB773626F3"><enum>(c)</enum><header>Effective <p> date</header><text>The amendments made by this section shall apply to dividends <p> with respect to taxable years of regulated investment companies beginning after <p> December 31, 2007.</text> <p> </subsection></section><section id="H6D2636AA9D994D53B0EDA94C39DF49CF"><enum>207.</enum><header>Stock in RIC for <p> purposes of determining estates of nonresidents not citizens</header> <p> <subsection id="HAFFAB50AD02340BD911C1300B87E27E4"><enum>(a)</enum><header>In <p> general</header><text display-inline="yes-display-inline">Paragraph (3) of <p> section 2105(d) (relating to stock in a RIC) is amended by striking <p> <quote>December 31, 2007</quote> and inserting <quote>December 31, <p> 2009</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H0F50791A1D2A4C9F964C247BB1B6BF16"><enum>(b)</enum><header>Effective <p> date</header><text>The amendment made by this section shall apply to decedents <p> dying after December 31, 2007.</text> <p> </subsection></section><section id="H5DF67FCF22544DBEB81983D8E36E778E"><enum>208.</enum><header>Qualified investment <p> entities</header> <p> <subsection id="H64506A0A8F7C46F58B814B68D82018A3"><enum>(a)</enum><header>In <p> general</header><text display-inline="yes-display-inline">Clause (ii) of <p> section 897(h)(4)(A) (relating to termination) is amended by striking <p> <quote>December 31, 2007</quote> and inserting <quote>December 31, <p> 2009</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H8104FBEAD0BD49C593C2C56C545E515D"><enum>(b)</enum><header>Effective <p> date</header><text>The amendment made by subsection (a) shall take effect on <p> January 1, 2008.</text> <p> </subsection></section><enum>III</enum><header>Extension of business <p> tax provisions</header> <p> <section id="id8C04D6A5F6E9420AADCF63FFB7DB465D"><enum>301.</enum><header>Extension and <p> modification of research credit</header> <p> <subsection id="id38E78F1C8EAB480FB0013A4738D39FC8"><enum>(a)</enum><header>Extension</header> <p> <paragraph id="idEC42B118EA6F4C41BEC26A62E33B7FAE"><enum>(1)</enum><header>In <p> general</header><text>Section 41(h) (relating to termination) is amended by <p> striking <quote>December 31, 2007</quote> and inserting <quote>December 31, <p> 2009</quote> in paragraph (1)(B).</text> <p> </paragraph><paragraph id="id2B91CD12DB2547609D734BA065CA2596"><enum>(2)</enum><header>Conforming <p> amendment</header><text>Subparagraph (D) of section 45C(b)(1) (relating to <p> special rule) is amended by striking <quote>after December 31, 2007</quote> and <p> inserting <quote>after December 31, 2009</quote>.</text> <p> </paragraph></subsection><subsection id="idDBFA1DA5B4FB4BC7B83D32C14514DB7A"><enum>(b)</enum><header>Termination of <p> alternative incremental credit</header><text>Section 41(h) is amended by <p> redesignating paragraph (2) as paragraph (3), and by inserting after paragraph <p> (1) the following new paragraph:</text> <p> <quoted-block act-name="" changed="added" id="idCF380E917130436694F980323F92B0E4" reported-display-style="italic" style="OLC"> <p> <paragraph id="id1CA0F87C8BD24C91A6CAC70DFBB7E2D3"><enum>(2)</enum><header>Termination of <p> alternative incremental credit</header><text>No election under subsection <p> (c)(4) shall apply to taxable years beginning after December 31, <p> 2008.</text> <p> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection id="idDE56EF299B3A4B28A45D27692779FBEB"><enum>(c)</enum><header>Modification of <p> alternative simplified credit</header><text>Paragraph (5)(A) of section 41(c) <p> (relating to election of alternative simplified credit) is amended by striking <p> <quote>12 percent</quote> and inserting <quote>14 percent (12 percent in the <p> case of taxable years ending before January 1, 2009)</quote>.</text> <p> </subsection><subsection id="id6337FB5EF4A242D3AEE68D132D570697"><enum>(d)</enum><header>Technical <p> correction</header><text>Paragraph (3) of section 41(h) is amended to read as <p> follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idEBE1917A42154C32AA57E6356DFA4387" reported-display-style="italic" style="OLC"> <p> <paragraph id="idD57C8E4442DB4CAF8341E7681B084D45"><enum>(2)</enum><header>Computation for taxable <p> year in which credit terminates</header><text>In the case of any taxable year <p> with respect to which this section applies to a number of days which is less <p> than the total number of days in such taxable year—</text> <p> <subparagraph id="idFB379E2E73524D9A979BDFBDA48D8A18"><enum>(A)</enum><text>the amount determined <p> under subsection (c)(1)(B) with respect to such taxable year shall be the <p> amount which bears the same ratio to such amount (determined without regard to <p> this paragraph) as the number of days in such taxable year to which this <p> section applies bears to the total number of days in such taxable year, <p> and</text> <p> </subparagraph><subparagraph id="id359DE81CB98D458A9A7A562BD50127E9"><enum>(B)</enum><text>for purposes of <p> subsection (c)(5), the average qualified research expenses for the preceding 3 <p> taxable years shall be the amount which bears the same ratio to such average <p> qualified research expenses (determined without regard to this paragraph) as <p> the number of days in such taxable year to which this section applies bears to <p> the total number of days in such taxable <p> year.</text> <p> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection id="idE6545E2C2E7A456DBAF53B3F88874DBA"><enum>(e)</enum><header>Effective date</header> <p> <paragraph id="idF63376D2AE634CEBA718C467948C755C"><enum>(1)</enum><header>In <p> general</header><text>Except as provided in paragraph (2), the amendments made <p> by this section shall apply to taxable years beginning after December 31, <p> 2007.</text> <p> </paragraph><paragraph id="id851FF1CF6B004E3C8AC973BB34D976C9"><enum>(2)</enum><header>Extension</header><text>The <p> amendments made by subsection (a) shall apply to amounts paid or incurred after <p> December 31, 2007.</text> <p> </paragraph></subsection></section><section id="H760774BC72734740A85E010060018121"><enum>302.</enum><header>New markets tax <p> credit</header><text display-inline="no-display-inline">Subparagraph (D) of <p> section 45D(f)(1) (relating to national limitation on amount of investments <p> designated) is amended by striking <quote>and 2008</quote> and inserting <p> <quote>2008, and 2009</quote>.</text> <p> </section><section id="ID5679FBC3740C43D5B67BD5EFABE46C8A"><enum>303.</enum><header>Subpart <p> <enum-in-header>F</enum-in-header> exception for active financing <p> income</header> <p> <subsection id="ID84C8D4E15F1B4A209EC5D250BB81FF14"><enum>(a)</enum><header>Exempt insurance <p> income</header><text>Paragraph (10) of section 953(e) (relating to application) <p> is amended—</text> <p> <paragraph id="IDBCE102C0DCB245CDA57C8599F9050A55"><enum>(1)</enum><text>by striking <p> <quote>January 1, 2009</quote> and inserting <quote>January 1, 2010</quote>, <p> and</text> <p> </paragraph><paragraph id="ID8047712002AD4EB5B474421F7ADB2733"><enum>(2)</enum><text>by striking <p> <quote>December 31, 2008</quote> and inserting <quote>December 31, <p> 2009</quote>.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID582B3AF3290E4ED58F303195FF3BF392"><enum>(b)</enum><header>Exception to treatment <p> as foreign personal holding company income</header><text>Paragraph (9) of <p> section 954(h) (relating to application) is amended by striking <quote>January <p> 1, 2009</quote> and inserting <quote>January 1, 2010</quote>.</text> <p> </subsection></section><section id="ID43F6CC22F0FE44AB90CC69470A676BD8"><enum>304.</enum><header>Extension of look-thru <p> rule for related controlled foreign corporations</header> <p> <subsection id="IDF2B444DFE31840BFB18813E8020D7A90"><enum>(a)</enum><header>In <p> general</header><text>Subparagraph (C) of section 954(c)(6) (relating to <p> application) is amended by striking <quote>January 1, 2009</quote> and <p> inserting <quote>January 1, 2010</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="IDDFA43DA0A4CA49578DC3D82067F3D52E"><enum>(b)</enum><header>Effective <p> date</header><text>The amendment made by this section shall apply to taxable <p> years of foreign corporations beginning after December 31, 2007, and to taxable <p> years of United States shareholders with or within which such taxable years of <p> foreign corporations end.</text> <p> </subsection></section><section id="IDE7B4D27BF86C4B6593E65E6D422F0496"><enum>305.</enum><header>Extension of 15-year <p> straight-line cost recovery for qualified leasehold improvements and qualified <p> restaurant improvements; 15-year straight-line cost recovery for certain <p> improvements to retail space</header> <p> <subsection id="idF09CBCF85ADA496C832C3C1C50ABD86B"><enum>(a)</enum><header>Extension of leasehold <p> and restaurant improvements</header> <p> <paragraph id="id203DE81E3412465CA61672D694E48D1E"><enum>(1)</enum><header>In <p> general</header><text>Clauses (iv) and (v) of section 168(e)(3)(E) (relating to <p> 15-year property) are each amended by striking <quote>January 1, 2008</quote> <p> and inserting <quote>January 1, 2010</quote>.</text> <p> </paragraph><paragraph id="id3781E7ED96D840D881A3DFA8EF731E13"><enum>(2)</enum><header>Effective <p> date</header><text>The amendments made by this subsection shall apply to <p> property placed in service after December 31, 2007.</text> <p> </paragraph></subsection><subsection id="H7A9BFA7F66BE46C0BFA6DF7831EC57E5"><enum>(b)</enum><header>Treatment To include <p> new construction</header> <p> <paragraph id="id0E12240072BB4DF1A4583B2DD0000392"><enum>(1)</enum><header>In <p> general</header><text>Paragraph (7) of section 168(e) (relating to <p> classification of property) is amended to read as follows:</text> <p> <quoted-block changed="added" id="H0EB7DF3547F34320B29C44C3EB2FA8D6" reported-display-style="italic" style="OLC"> <p> <paragraph id="H3B367DAC907440E5903C8DE4E604767"><enum>(7)</enum><header>Qualified restaurant <p> property</header> <p> <subparagraph id="idBB832DE421664C7B8B528FD52828163A"><enum>(A)</enum><header>In <p> general</header><text>The term <term>qualified restaurant property</term> means <p> any section 1250 property which is—</text> <p> <clause id="idA354E1A6E1F54D23A49C019C433F4AF5"><enum>(i)</enum><text>a building, if such <p> building is placed in service after December 31, 2008, and before January 1, <p> 2010, or</text> <p> </clause><clause id="id4358A0F3FE31467391A0E14731C940F3"><enum>(ii)</enum><text>an improvement to a <p> building,</text> <p> </clause><continuation-text continuation-text-level="subparagraph">if more than 50 percent of the building’s <p> square footage is devoted to preparation of, and seating for on-premises <p> consumption of, prepared meals.</continuation-text></subparagraph><subparagraph id="idF0A90F2B3ACA4DB7B3E2B737B2330540"><enum>(B)</enum><header>Exclusion from bonus <p> depreciation</header><text>Property described in this paragraph shall not be <p> considered qualified property for purposes of subsection <p> (k).</text> <p> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2CC60479E7214FB29F292E4399FAE1E5"><enum>(2)</enum><header>Effective <p> date</header><text>The amendment made by this subsection shall apply to <p> property placed in service after December 31, 2008.</text> <p> </paragraph></subsection><subsection id="IDA00156CDC87E41A9A1EAD70CC4FBC155"><enum>(c)</enum><header>Recovery period for <p> depreciation of certain improvements to retail space</header> <p> <paragraph id="IDF593D53289A34EED9DA3DA3ED4D25A25"><enum>(1)</enum><header>15-year recovery <p> period</header><text>Section 168(e)(3)(E) (relating to 15-year property) is <p> amended by striking <quote>and</quote> at the end of clause (vii), by striking <p> the period at the end of clause (viii) and inserting <quote>, and</quote>, and <p> by adding at the end the following new clause:</text> <p> <quoted-block changed="added" id="ID2DF8E258DD8E46F59CEB80E8772C9274" reported-display-style="italic" style="OLC"> <p> <clause id="ID366DA8636340404B83C33947570F9E37"><enum>(ix)</enum><text>any qualified retail <p> improvement property placed in service after December 31, 2008, and before <p> January 1, <p> 2010.</text> <p> </clause><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph id="ID6224DBA22C404F2395E31D8C94EE1A24"><enum>(2)</enum><header>Qualified retail <p> improvement property</header><text>Section 168(e) is amended by adding at the <p> end the following new paragraph:</text> <p> <quoted-block changed="added" id="ID7CDE7B8A8CD74045AEA538FE11064BAB" reported-display-style="italic" style="OLC"> <p> <paragraph id="ID8E1D4FEE130C4E0CB1382DF58313D628"><enum>(8)</enum><header>Qualified retail <p> improvement property</header> <p> <subparagraph id="IDDC5796DFC05E4AC18ABC9898B076C586"><enum>(A)</enum><header>In <p> general</header><text>The term <term>qualified retail improvement <p> property</term> means any improvement to an interior portion of a building <p> which is nonresidential real property if—</text> <p> <clause id="ID7CA0E4B13FCD40EE8FBB0B8A42B4900D"><enum>(i)</enum><text>such portion is open to <p> the general public and is used in the retail trade or business of selling <p> tangible personal property to the general public, and</text> <p> </clause><clause id="IDA019B954294A4844AAD0257F993DC531"><enum>(ii)</enum><text>such improvement is <p> placed in service more than 3 years after the date the building was first <p> placed in service.</text> <p> </clause></subparagraph><subparagraph id="IDC79715A9429E4BBBB51182E4BC69B116"><enum>(B)</enum><header>Improvements made by <p> owner</header><text>In the case of an improvement made by the owner of such <p> improvement, such improvement shall be qualified retail improvement property <p> (if at all) only so long as such improvement is held by such owner. Rules <p> similar to the rules under paragraph (6)(B) shall apply for purposes of the <p> preceding sentence.</text> <p> </subparagraph><subparagraph id="IDD1E13610B2824CBF9D50F4405F386ABE"><enum>(C)</enum><header>Certain improvements <p> not included</header><text>Such term shall not include any improvement for <p> which the expenditure is attributable to—</text> <p> <clause id="IDC79B1ADB42B64C2F855DB645AD4C04FF"><enum>(i)</enum><text>the enlargement of the <p> building,</text> <p> </clause><clause id="IDE5BD05639523426995EBC284461DC95F"><enum>(ii)</enum><text>any elevator or <p> escalator,</text> <p> </clause><clause id="ID928616379F52437CB0F9F4826FEB4CB2"><enum>(iii)</enum><text>any structural <p> component benefitting a common area, or</text> <p> </clause><clause id="IDE675E730F20147AFAE706D15DB2E9F75"><enum>(iv)</enum><text>the internal structural <p> framework of the building.</text> <p> </clause></subparagraph><subparagraph id="id075C6476C7CB4CF9BB54F872DB874746"><enum>(D)</enum><header>Exclusion from bonus <p> depreciation</header><text>Property described in this paragraph shall not be <p> considered qualified property for purposes of subsection (k).</text> <p> </subparagraph><subparagraph id="idBF2E286617D84EE28420A3E2FFCC31DD"><enum>(E)</enum><header>Termination</header><text>Such <p> term shall not include any improvement placed in service after December 31, <p> 2009.</text> <p> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph id="ID1410289634F94B5DAC924AC27DA136C9"><enum>(3)</enum><header>Requirement to use <p> straight line method</header><text>Section 168(b)(3) is amended by adding at <p> the end the following new subparagraph:</text> <p> <quoted-block changed="added" id="ID08154C0D137549828B066D317DC5CF66" reported-display-style="italic" style="OLC"> <p> <subparagraph id="ID2E70AF76A6774C5D92B4C61C3990862D"><enum>(I)</enum><text>Qualified retail <p> improvement property described in subsection <p> (e)(8).</text> <p> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph id="IDBAA3421AD6AF4D2DBB3C9EDD081B394E"><enum>(4)</enum><header>Alternative <p> system</header><text>The table contained in section 168(g)(3)(B) is amended by <p> inserting after the item relating to subparagraph (E)(viii) the following new <p> item:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id939A4865DB0F4E8E9AB6F76DC514F6D8" reported-display-style="italic" style="OLC"> <p> <table line-rules="no-gen" rule-weights="4.4.4.4.0.0"> <p> <ttitle> </ttitle> <p> <tgroup cols="2" grid-typeface="1.1" thead-tbody-ldg-size="10.10.12" ttitle-size="0"><colspec coldef="txt" colname="col1" min-data-value="200"></colspec><colspec coldef="fig" colname="col2" min-data-value="10"></colspec> <p> <tbody> <p> <row><entry colname="col1" stub-definition="txt-ldr" stub-hierarchy="1">“(E)(ix)</entry><entry colname="col2">39</entry> <p> </row> <p> </tbody> <p> </tgroup></table> <p> <after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDDCD24F472F4844FDB2D6F40CEBB484C5"><enum>(5)</enum><header>Effective <p> date</header><text>The amendments made by this subsection shall apply to <p> property placed in service after December 31, 2008.</text> <p> </paragraph></subsection></section><section id="HC327A6861A0B41EF86E595C6F5047808"><enum>306.</enum><header>Modification of tax <p> treatment of certain payments to controlling exempt organizations</header> <p> <subsection id="H64C925302C9846479F17DB89EB395E16"><enum>(a)</enum><header>In <p> general</header><text>Clause (iv) of section 512(b)(13)(E) (relating to <p> termination) is amended by striking <quote>December 31, 2007</quote> and <p> inserting <quote>December 31, 2009</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H0F5CA84F487C4A4DBF01AC98A6076140"><enum>(b)</enum><header>Effective <p> date</header><text>The amendment made by this section shall apply to payments <p> received or accrued after December 31, 2007.</text> <p> </subsection></section><section display-inline="no-display-inline" id="H192138D5F89C49E6B630D32E9900037E" section-type="subsequent-section"><enum>307.</enum><header>Basis adjustment to <p> stock of S corporations making charitable contributions of property</header> <p> <subsection id="H98037D14367D40DB838FBE8C6F5E6B9C"><enum>(a)</enum><header>In <p> general</header><text>The last sentence of section 1367(a)(2) (relating to <p> decreases in basis) is amended by striking <quote>December 31, 2007</quote> and <p> inserting <quote>December 31, 2009</quote>.</text> <p> </subsection><subsection id="HD726C94443224E01A7E8C4373591AE4C"><enum>(b)</enum><header>Effective <p> date</header><text>The amendment made by this section shall apply to <p> contributions made in taxable years beginning after December 31, 2007.</text> <p> </subsection></section><section id="HD360BDD1E3094BE08E67FBD8EA22E8D7"><enum>308.</enum><header>Increase in limit on <p> cover over of rum excise tax to Puerto Rico and the Virgin Islands</header> <p> <subsection id="idA3E42E0B1FC84290A5958065FA9F7E2E"><enum>(a)</enum><header>In <p> general</header><text>Paragraph (1) of section 7652(f) is amended by striking <p> <quote>January 1, 2008</quote> and inserting <quote>January 1, <p> 2010</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="id6353D4C81D4648149EEA766C7C20DA0F"><enum>(b)</enum><header>Effective <p> date</header><text>The amendment made by this section shall apply to distilled <p> spirits brought into the United States after December 31, 2007.</text> <p> </subsection></section><section id="H95EED196C3BB40E59CAC7D5E65FA788C"><enum>309.</enum><header>Extension of economic <p> development credit for American Samoa</header> <p> <subsection id="HD72B97E896114B98914481F315A69111"><enum>(a)</enum><header>In <p> general</header><text display-inline="yes-display-inline">Subsection (d) of <p> section 119 of division A of the Tax Relief and Health Care Act of 2006 is <p> amended—</text> <p> <paragraph id="H450099B466294B98A8E0D94F79DEEC8"><enum>(1)</enum><text>by striking <quote>first <p> two taxable years</quote> and inserting <quote>first 4 taxable years</quote>, <p> and</text> <p> </paragraph><paragraph id="HC294B4BACE7C46C6AD6E8C02C869734B"><enum>(2)</enum><text>by striking <p> <quote>January 1, 2008</quote> and inserting <quote>January 1, <p> 2010</quote>.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HF3ED8E784D594A4700D9A7021D03D431"><enum>(b)</enum><header>Effective <p> date</header><text>The amendments made by this section shall apply to taxable <p> years beginning after December 31, 2007.</text> <p> </subsection></section><section display-inline="no-display-inline" id="id8FCAA6C6F7194634A682A4F913A18339"><enum>310.</enum><header>Extension of mine <p> rescue team training credit</header><text display-inline="no-display-inline">Section 45N(e) (relating to termination) is <p> amended by striking <quote>December 31, 2008</quote> and inserting <p> <quote>December 31, 2009</quote>.</text> <p> </section><section display-inline="no-display-inline" id="id9B46DCE38067457F985335119B46C052"><enum>311.</enum><header>Extension of election <p> to expense advanced mine safety equipment</header><text display-inline="no-display-inline">Section 179E(g) (relating to termination) is <p> amended by striking <quote>December 31, 2008</quote> and inserting <p> <quote>December 31, 2009</quote>.</text> <p> </section><section id="H196DFA13D86C459AA893216D975B87F4"><enum>312.</enum><header>Deduction allowable <p> with respect to income attributable to domestic production activities in Puerto <p> Rico</header> <p> <subsection id="HE09C9686EF2C442EB14956002F43FCBA"><enum>(a)</enum><header>In <p> general</header><text>Subparagraph (C) of section 199(d)(8) (relating to <p> termination) is amended—</text> <p> <paragraph id="H50D41DBFCF594766B519FCA78DA26100"><enum>(1)</enum><text>by striking <quote>first <p> 2 taxable years</quote> and inserting <quote>first 4 taxable years</quote>, <p> and</text> <p> </paragraph><paragraph id="H55C685EBB5B1427091F12BDF969800AD"><enum>(2)</enum><text>by striking <p> <quote>January 1, 2008</quote> and inserting <quote>January 1, <p> 2010</quote>.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H077806D4C0F34341A673DB7682B36B82"><enum>(b)</enum><header>Effective <p> date</header><text>The amendments made by this section shall apply to taxable <p> years beginning after December 31, 2007.</text> <p> </subsection></section><section commented="no" display-inline="no-display-inline" id="HC56BB5398DD449E6A61921AD75ED2546" section-type="subsequent-section"><enum>313.</enum><header>Qualified zone <p> academy bonds</header> <p> <subsection commented="no" id="HF2D2A28797CF451780C36FBEC460666"><enum>(a)</enum><header>In <p> general</header><text display-inline="yes-display-inline">Subpart I of part IV <p> of subchapter A of chapter 1 is amended by adding at the end the following new <p> section:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="HD1A45A41FC9D411DA30875BD469E6000" reported-display-style="italic" style="OLC"> <p> <section commented="no" display-inline="no-display-inline" id="H5D8ACDE8CC514D27B738D4298DD32600" section-type="subsequent-section"><enum>54E.</enum><header>Qualified zone <p> academy bonds</header> <p> <subsection commented="no" id="H8E2059CAE7E94770A5ADB98BEFFA87C"><enum>(a)</enum><header>Qualified zone academy <p> bonds</header><text>For purposes of this subchapter, the term <term>qualified <p> zone academy bond</term> means any bond issued as part of an issue if—</text> <p> <paragraph commented="no" id="HF7031AC94E464D0E8962B95C4BB2D7AC"><enum>(1)</enum><text display-inline="yes-display-inline">100 percent of the available project <p> proceeds of such issue are to be used for a qualified purpose with respect to a <p> qualified zone academy established by an eligible local education <p> agency,</text> <p> </paragraph><paragraph commented="no" id="H31D65A6EAC8A4EF7899430A26BD6A895"><enum>(2)</enum><text>the bond is issued by a <p> State or local government within the jurisdiction of which such academy is <p> located, and</text> <p> </paragraph><paragraph commented="no" id="HA29C36D081ED4DCFBC00763C3B7000F"><enum>(3)</enum><text>the issuer—</text> <p> <subparagraph commented="no" id="HDBAF29B142F64308B5FEB8A1B5A53534"><enum>(A)</enum><text>designates such bond for <p> purposes of this section,</text> <p> </subparagraph><subparagraph commented="no" id="H9A177B5973A34288B0CACF665025458F"><enum>(B)</enum><text>certifies that it has <p> written assurances that the private business contribution requirement of <p> subsection (b) will be met with respect to such academy, and</text> <p> </subparagraph><subparagraph commented="no" id="H0CA2D49ADA8341A3BE02FE36CBFF817"><enum>(C)</enum><text>certifies that it has the <p> written approval of the eligible local education agency for such bond <p> issuance.</text> <p> </subparagraph></paragraph></subsection><subsection id="H4D951DAEE3A1469CA300E6AC752C88A2"><enum>(b)</enum><header> Private business <p> contribution requirement</header><text display-inline="yes-display-inline">For <p> purposes of subsection (a), the private business contribution requirement of <p> this subsection is met with respect to any issue if the eligible local <p> education agency that established the qualified zone academy has written <p> commitments from private entities to make qualified contributions having a <p> present value (as of the date of issuance of the issue) of not less than 10 <p> percent of the proceeds of the issue.</text> <p> </subsection><subsection id="H3F1A0E608BAF436B9EB2EDF1DC7887C0"><enum>(c)</enum><header>Limitation on amount of <p> bonds designated</header> <p> <paragraph id="H6F5D6677256249788B2D5C4FEA00700"><enum>(1)</enum><header>National <p> limitation</header><text display-inline="yes-display-inline">There is a <p> national zone academy bond limitation for each calendar year. Such limitation <p> is $400,000,000 for 2008 and 2009, and, except as provided in paragraph (4), <p> zero thereafter.</text> <p> </paragraph><paragraph id="H79797C2566A5487BB9A41710028BCC3"><enum>(2)</enum><header>Allocation of <p> limitation</header><text display-inline="yes-display-inline">The national zone <p> academy bond limitation for a calendar year shall be allocated by the Secretary <p> among the States on the basis of their respective populations of individuals <p> below the poverty line (as defined by the Office of Management and Budget). The <p> limitation amount allocated to a State under the preceding sentence shall be <p> allocated by the State education agency to qualified zone academies within such <p> State.</text> <p> </paragraph><paragraph id="H470671AB107A4D8DADF536DD2607500"><enum>(3)</enum><header>Designation subject to <p> limitation amount</header><text display-inline="yes-display-inline">The maximum <p> aggregate face amount of bonds issued during any calendar year which may be <p> designated under subsection (a) with respect to any qualified zone academy <p> shall not exceed the limitation amount allocated to such academy under <p> paragraph (2) for such calendar year.</text> <p> </paragraph><paragraph id="HEB727532101B493BBD4D26EAC0169541"><enum>(4)</enum><header>Carryover of unused <p> limitation</header> <p> <subparagraph id="H0D9F40848EF3483897AE2674D0296592"><enum>(A)</enum><header>In <p> general</header><text>If for any calendar year—</text> <p> <clause id="H2B35D9BE44514CB7AB4C77E2C32CDD00"><enum>(i)</enum><text>the limitation amount for <p> any State, exceeds</text> <p> </clause><clause id="HD1666DFA2C054EA187723F754554F7F3"><enum>(ii)</enum><text display-inline="yes-display-inline">the amount of bonds issued during such year <p> which are designated under subsection (a) with respect to qualified zone <p> academies within such State,</text> <p> </clause><continuation-text continuation-text-level="subparagraph">the limitation amount for such State for <p> the following calendar year shall be increased by the amount of such <p> excess.</continuation-text></subparagraph><subparagraph id="HB72C91A1BD28472F8E8202D2EE46DAB"><enum>(B)</enum><header>Limitation on <p> carryover</header><text display-inline="yes-display-inline">Any carryforward of <p> a limitation amount may be carried only to the first 2 years following the <p> unused limitation year. For purposes of the preceding sentence, a limitation <p> amount shall be treated as used on a first-in first-out basis.</text> <p> </subparagraph><subparagraph id="HBFDBF4154557418ABF66D9D97512E662"><enum>(C)</enum><header>Coordination with <p> section 1397E</header><text>Any carryover determined under section 1397E(e)(4) <p> (relating to carryover of unused limitation) with respect to any State to <p> calendar year 2008 or 2009 shall be treated for purposes of this section as a <p> carryover with respect to such State for such calendar year under subparagraph <p> (A), and the limitation of subparagraph (B) shall apply to such carryover <p> taking into account the calendar years to which such carryover relates.</text> <p> </subparagraph></paragraph></subsection><subsection id="HC45C95905A1143C5879453829268C307"><enum>(d)</enum><header>Definitions</header><text>For <p> purposes of this section—</text> <p> <paragraph id="H2E24D34ED30E4778BA30AB6F2C35002F"><enum>(1)</enum><header>Qualified zone <p> academy</header><text>The term <quote>qualified zone academy</quote> means any <p> public school (or academic program within a public school) which is established <p> by and operated under the supervision of an eligible local education agency to <p> provide education or training below the postsecondary level if—</text> <p> <subparagraph id="HADA8E907B4914ACC88A2418C5F2E97A7"><enum>(A)</enum><text>such public school or <p> program (as the case may be) is designed in cooperation with business to <p> enhance the academic curriculum, increase graduation and employment rates, and <p> better prepare students for the rigors of college and the increasingly complex <p> workforce,</text> <p> </subparagraph><subparagraph id="HFF3DE7176D174E488BABA66E8DDE8F88"><enum>(B)</enum><text>students in such public <p> school or program (as the case may be) will be subject to the same academic <p> standards and assessments as other students educated by the eligible local <p> education agency,</text> <p> </subparagraph><subparagraph id="HA721A98B5A1F444D8150D7E35F36015E"><enum>(C)</enum><text>the comprehensive <p> education plan of such public school or program is approved by the eligible <p> local education agency, and</text> <p> </subparagraph><subparagraph id="H21D169317CAD4772BD5BC267AEA9B361"><enum>(D)</enum><clause commented="no" display-inline="yes-display-inline" id="H7F8FAAA25DB44E1692B13B37D8975377"><enum>(i)</enum><text>such public school is <p> located in an empowerment zone or enterprise community (including any such zone <p> or community designated after the date of the enactment of this section), <p> or</text> <p> </clause><clause changed="added" id="H69F7DF63D33940E78CAABD2981D39B6D" indent="up1" reported-display-style="italic"><enum>(ii)</enum><text>there is a reasonable <p> expectation (as of the date of issuance of the bonds) that at least 35 percent <p> of the students attending such school or participating in such program (as the <p> case may be) will be eligible for free or reduced-cost lunches under the school <p> lunch program established under the National School Lunch Act.</text> <p> </clause></subparagraph></paragraph><paragraph id="HC0AD7C417333473EAC1030282EA98FBA"><enum>(2)</enum><header>Eligible local <p> education agency</header><text>For purposes of this section, the term <p> <quote>eligible local education agency</quote> means any local educational <p> agency as defined in section 9101 of the Elementary and Secondary Education Act <p> of 1965.</text> <p> </paragraph><paragraph id="H3B7C4345E7E6410F8E85634E7800B548"><enum>(3)</enum><header>Qualified <p> purpose</header><text>The term <quote>qualified purpose</quote> means, with <p> respect to any qualified zone academy—</text> <p> <subparagraph id="HBFB3D1687A1B468CA203E4E7734EB2E0"><enum>(A)</enum><text>rehabilitating or <p> repairing the public school facility in which the academy is <p> established,</text> <p> </subparagraph><subparagraph id="H0601541C3DA84A1E923E90DC50A3391"><enum>(B)</enum><text>providing equipment for <p> use at such academy,</text> <p> </subparagraph><subparagraph id="H69D7A725A5364BF2B98500D1AEB30840"><enum>(C)</enum><text>developing course <p> materials for education to be provided at such academy, and</text> <p> </subparagraph><subparagraph id="HF75ECE35FD3F4BA2B7B98400B7B3BA93"><enum>(D)</enum><text>training teachers and <p> other school personnel in such academy.</text> <p> </subparagraph></paragraph><paragraph id="HC3F2F93D94E14D9E95C8C9D5E92D817D"><enum>(4)</enum><header>Qualified <p> contributions</header><text>The term <quote>qualified contribution</quote> <p> means any contribution (of a type and quality acceptable to the eligible local <p> education agency) of—</text> <p> <subparagraph id="H7F322406C2F64DCD9FB5363E52CAF828"><enum>(A)</enum><text>equipment for use in the <p> qualified zone academy (including state-of-the-art technology and vocational <p> equipment),</text> <p> </subparagraph><subparagraph id="H7A54485745204087A92305BF37A32D92"><enum>(B)</enum><text>technical assistance in <p> developing curriculum or in training teachers in order to promote appropriate <p> market driven technology in the classroom,</text> <p> </subparagraph><subparagraph id="H7CD3B4F940B842BF8C8CF201DFF3448"><enum>(C)</enum><text>services of employees as <p> volunteer mentors,</text> <p> </subparagraph><subparagraph id="HAFAE13BCF1844C5FB690C3C0F739B6A4"><enum>(D)</enum><text>internships, field trips, <p> or other educational opportunities outside the academy for students, or</text> <p> </subparagraph><subparagraph id="HE29399DBAEFF4388970724218C1BAB33"><enum>(E)</enum><text>any other property or <p> service specified by the eligible local education <p> agency.</text> <p> </subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection display-inline="no-display-inline" id="id4CA4DA6E766F46C5B5FF7AFA40CE957D"><enum>(b)</enum><header>Conforming <p> amendments</header> <p> <paragraph id="id092D7AB0BF534E21A418057A495089C2"><enum>(1)</enum><text>Paragraph (1) of section <p> 54A(d), as amended by this Act, is amended by striking <quote>or</quote> at the <p> end of subparagraph (B), by inserting <quote>or</quote> at the end of <p> subparagraph (C), and by inserting after subparagraph (C) the following new <p> subparagraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H292337E32C9D4FC192CAD6634349FEB2" reported-display-style="italic" style="OLC"> <p> <subparagraph id="id2007D9B5E476435891A8787083516BD3"><enum>(D)</enum><text display-inline="yes-display-inline">a qualified zone academy <p> bond,</text> <p> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph id="idD0DD3A7C084A499EB731EC416A512DB3"><enum>(2)</enum><text>Subparagraph (C) of <p> section 54A(d)(2), as amended by this Act, is amended by striking <p> <quote>and</quote> at the end of clause (ii), by striking the period at the end <p> of clause (iii) and inserting <quote>, and</quote>, and by adding at the end <p> the following new clause:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H8CB37287E52D406CBE3213921DEF7FA1" reported-display-style="italic" style="OLC"> <p> <clause id="HF0FDCE8ADAAF406E9D11FA8EAFE4A84E"><enum>(iv)</enum><text display-inline="yes-display-inline">in the case of a qualified zone academy <p> bond, a purpose specified in section <p> 54E(a)(1).</text> <p> </clause><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph id="idA0CC685727944409842A06D56BFA4056"><enum>(3)</enum><text>Section 1397E is amended <p> by adding at the end the following new subsection:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idD68C94D7E5CE4477B0DF69B76A276C87" reported-display-style="italic" style="OLC"> <p> <subsection id="id420F434B7CA14E4E98E03442EF05D801"><enum>(m)</enum><header>Termination</header><text display-inline="yes-display-inline">This section shall not apply to any <p> obligation issued after the date of the enactment of the <p> <short-title>Tax Extenders and Alternative Minimum Tax <p> Relief Act of <p> 2008</short-title>.</text> <p> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph id="idF9718F5801A143988F2770FD11FFE6AD"><enum>(4)</enum><text display-inline="yes-display-inline">The table of sections for subpart I of part <p> IV of subchapter A of chapter 1 is amended by adding at the end the following <p> new item:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id37AF8DAE1A1B487A97BCCD7B7E3942B8" reported-display-style="italic" style="OLC"> <p> <toc changed="added" container-level="quoted-block-container" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration" reported-display-style="italic"> <p> <toc-entry level="section">Sec. 54E. Qualified zone academy <p> bonds.</toc-entry> <p> </toc> <p> <after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id4BF7995CD7A248C6B39FC8D0535D73F7"><enum>(c)</enum><header>Effective <p> date</header><text>The amendments made by this section shall apply to <p> obligations issued after the date of the enactment of this Act.</text> <p> </subsection></section><section display-inline="no-display-inline" id="H12FD917F96A543E9BB365817C735F7B2" section-type="subsequent-section"><enum>314.</enum><header>Indian employment <p> credit</header> <p> <subsection id="H994638FE5C754634BC764CB115865760"><enum>(a)</enum><header>In <p> general</header><text>Subsection (f) of section 45A (relating to termination) <p> is amended by striking <quote>December 31, 2007</quote> and inserting <p> <quote>December 31, 2009</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H568E60AD31CE4728B6FDD9342CF1B308"><enum>(b)</enum><header>Effective <p> date</header><text>The amendment made by this section shall apply to taxable <p> years beginning after December 31, 2007.</text> <p> </subsection></section><section id="HD8C3242227FB4F8B8F6CC20030D526B9"><enum>315.</enum><header>Accelerated <p> depreciation for business property on Indian reservations</header> <p> <subsection id="H87875697DC884C50853507FAF2B8317"><enum>(a)</enum><header>In <p> general</header><text>Paragraph (8) of section 168(j) (relating to termination) <p> is amended by striking <quote>December 31, 2007</quote> and inserting <p> <quote>December 31, 2009</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H98DAA23691AA490EBF97F825963050D3"><enum>(b)</enum><header>Effective <p> date</header><text>The amendment made by this section shall apply to property <p> placed in service after December 31, 2007.</text> <p> </subsection></section><section id="H6D79774ABDC744C6A9D7EDB1059FB800"><enum>316.</enum><header>Railroad track <p> maintenance</header> <p> <subsection id="H3D96A57D6C9C47819DBEA44CE3B56B3F"><enum>(a)</enum><header>In <p> general</header><text>Subsection (f) of section 45G (relating to application of <p> section) is amended by striking <quote>January 1, 2008</quote> and inserting <p> <quote>January 1, 2010</quote>.</text> <p> </subsection><subsection id="idEC665BDB1445493FAE0E5CD03B930AB5"><enum>(b)</enum><header>Credit allowed against <p> alternative minimum tax</header><text>Subparagraph (B) of section 38(c)(4), as <p> amended by this Act, is amended—</text> <p> <paragraph id="idE940D7472FEC44FBB35914FCC67C5EF0"><enum>(1)</enum><text>by redesignating clauses <p> (v), (vi), and (vii) as clauses (vi), (vii), and (viii), respectively, <p> and</text> <p> </paragraph><paragraph id="id3F6003082276405FA2620C21B01B2518"><enum>(2)</enum><text>by inserting after clause <p> (iv) the following new clause:</text> <p> <quoted-block act-name="" changed="added" id="id994A02C9693845B382AE9CB553E8D1BC" reported-display-style="italic" style="OLC"> <p> <clause id="id0F9C03BD22AC4CF9877E732AF30F6D04"><enum>(v)</enum><text>the credit determined <p> under section <p> 45G,</text> <p> </clause><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id889CE89CD9444B31BBD760AD7B0EB2C6"><enum>(c)</enum><header>Effective <p> dates</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="id6E299D7E486C4481B9920087DBF5F16D"><enum>(1)</enum><text>The amendment made by <p> subsection (a) shall apply to expenditures paid or incurred during taxable <p> years beginning after December 31, 2007.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idDC11B979D0C04548A93FBFD79CA21ADE"><enum>(2)</enum><text>The amendments made by <p> subsection (b) shall apply to credits determined under section 45G of the <p> Internal Revenue Code of 1986 in taxable years beginning after December 31, <p> 2007, and to carrybacks of such credits.</text> <p> </paragraph></subsection></section><section id="H36151EC261674D1384679DC37E19BF42"><enum>317.</enum><header>Seven-year cost <p> recovery period for motorsports racing track facility</header> <p> <subsection id="HFEF5F94D2F47497F98191FCC9F4FA56C"><enum>(a)</enum><header>In <p> general</header><text>Subparagraph (D) of section 168(i)(15) (relating to <p> termination) is amended by striking <quote>December 31, 2007</quote> and <p> inserting <quote>December 31, 2009</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="HA6113B6DB1824AF4A386C4A6BF4600E6"><enum>(b)</enum><header>Effective <p> date</header><text>The amendment made by this section shall apply to property <p> placed in service after December 31, 2007.</text> <p> </subsection></section><section id="HEC76B72602774C84A753D2B2776F06F5"><enum>318.</enum><header>Expensing of <p> environmental remediation costs</header> <p> <subsection id="H0E9EEEC28B964C67994C473DD10100A9"><enum>(a)</enum><header>In <p> general</header><text>Subsection (h) of section 198 (relating to termination) <p> is amended by striking <quote>December 31, 2007</quote> and inserting <p> <quote>December 31, 2009</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H99FAC0C4A8A446E087D99F8BCF8BD096"><enum>(b)</enum><header>Effective <p> date</header><text>The amendment made by this section shall apply to <p> expenditures paid or incurred after December 31, 2007.</text> <p> </subsection></section><section id="H5396173E31EC490BB1215B6096547B98" section-type="subsequent-section"><enum>319.</enum><header>Extension of work <p> opportunity tax credit for Hurricane Katrina employees</header> <p> <subsection id="H0E38404C73BF4802BDE5A2C700086511"><enum>(a)</enum><header>In <p> general</header><text display-inline="yes-display-inline">Paragraph (1) of <p> section 201(b) of the Katrina Emergency Tax Relief Act of 2005 is amended by <p> striking <quote>2-year</quote> and inserting <quote>4-year</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H7357A9D0A4D641A3A2902E00BAA3A6D7"><enum>(b)</enum><header>Effective <p> date</header><text display-inline="yes-display-inline">The amendment made by <p> subsection (a) shall apply to individuals hired after August 27, 2007.</text> <p> </subsection></section><section commented="no" display-inline="no-display-inline" id="id4FF8F890626347209FC104AF7E9AF973"><enum>320.</enum><header>Extension of increased <p> rehabilitation credit for structures in the Gulf Opportunity Zone</header> <p> <subsection commented="no" display-inline="no-display-inline" id="id0DB3E4EA43484AEE9237F6E42919047D"><enum>(a)</enum><header>In <p> general</header><text>Subsection (h) of section 1400N is amended by striking <p> <quote>December 31, 2008</quote> and inserting <quote>December 31, <p> 2009</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="idDEFEB2D7E08941E3B54E2A0572784B04"><enum>(b)</enum><header>Effective <p> date</header><text>The amendment made by this section shall apply to <p> expenditures paid or incurred after the date of the enactment of this <p> Act.</text> <p> </subsection></section><section commented="no" display-inline="no-display-inline" id="H62DFA24C74D843F18437183F015619B5" section-type="subsequent-section"><enum>321.</enum><header display-inline="yes-display-inline">Enhanced deduction for qualified computer <p> contributions</header> <p> <subsection commented="no" display-inline="no-display-inline" id="HD9AC8A123B0A493C94C9E2BBC27BBD6B"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subparagraph (G) of section 170(e)(6) is <p> amended by striking <quote>December 31, 2007</quote> and inserting <p> <quote>December 31, 2009</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H187803FACB264AE8ACDA02D836A14740"><enum>(b)</enum><header display-inline="yes-display-inline">Effective <p> date</header><text display-inline="yes-display-inline">The amendment made by <p> this section shall apply to contributions made during taxable years beginning <p> after December 31, 2007.</text> <p> </subsection></section><section commented="no" id="H931D0C136D8043D3833C66D87F9DAFE5"><enum>322.</enum><header>Tax incentives for <p> investment in the District of Columbia</header> <p> <subsection commented="no" id="H196F2906250C4B00A222C2D12900BA9D"><enum>(a)</enum><header>Designation of <p> Zone</header> <p> <paragraph commented="no" id="H5BEA17C6378B4DA3B7565FE234B8F9B0"><enum>(1)</enum><header>In <p> general</header><text>Subsection (f) of section 1400 is amended by striking <p> <quote>2007</quote> both places it appears and inserting <p> <quote>2009</quote>.</text> <p> </paragraph><paragraph commented="no" id="H45ADB3F6168041ED8083DF9CF66DC0F6"><enum>(2)</enum><header>Effective <p> date</header><text>The amendments made by this subsection shall apply to <p> periods beginning after December 31, 2007.</text> <p> </paragraph></subsection><subsection commented="no" id="HCDAF4DCFA11249F48104FFE5356C1B63"><enum>(b)</enum><header>Tax-Exempt Economic <p> Development Bonds</header> <p> <paragraph commented="no" id="H7273B7C28D2F471980BC701CBF9F1117"><enum>(1)</enum><header>In <p> general</header><text>Subsection (b) of section 1400A is amended by striking <p> <quote>2007</quote> and inserting <quote>2009</quote>.</text> <p> </paragraph><paragraph commented="no" id="HAAF30B606B7D4FECBC4BA2BFCE55D968"><enum>(2)</enum><header>Effective <p> date</header><text>The amendment made by this subsection shall apply to bonds <p> issued after December 31, 2007.</text> <p> </paragraph></subsection><subsection commented="no" id="H011B3CD91FF944948F2501F3AE81F9C9"><enum>(c)</enum><header>Zero Percent Capital <p> Gains Rate</header> <p> <paragraph commented="no" id="H2EDA14BD2D2845E68457BDE6AB7F343E"><enum>(1)</enum><header>In <p> general</header><text>Subsection (b) of section 1400B is amended by striking <p> <quote>2008</quote> each place it appears and inserting <p> <quote>2010</quote>.</text> <p> </paragraph><paragraph commented="no" id="H4531BC82E5DC4545B424E4D8A4ABA86"><enum>(2)</enum><header>Conforming <p> amendments</header> <p> <subparagraph commented="no" id="HE57F566AF1F4434591FBE69E5D750137"><enum>(A)</enum><text>Section 1400B(e)(2) is <p> amended—</text> <p> <clause commented="no" id="H1813AAC4AA6047DA9FEE39D3FB18F300"><enum>(i)</enum><text>by striking <p> <quote>2012</quote> and inserting <quote>2014</quote>, and</text> <p> </clause><clause commented="no" id="H57FCF646523049EDA0AC4BED61083E73"><enum>(ii)</enum><text>by striking <p> <quote><header-in-text level="paragraph" style="OLC">2012</header-in-text></quote> in the heading thereof and inserting <p> <quote><header-in-text level="paragraph" style="OLC">2014</header-in-text></quote>.</text> <p> </clause></subparagraph><subparagraph commented="no" id="HB380444F95FA48F592869683B200A4A0"><enum>(B)</enum><text>Section 1400B(g)(2) is <p> amended by striking <quote>2012</quote> and inserting <p> <quote>2014</quote>.</text> <p> </subparagraph><subparagraph commented="no" id="H39AC0012232A44079600DD4891C27392"><enum>(C)</enum><text>Section 1400F(d) is <p> amended by striking <quote>2012</quote> and inserting <p> <quote>2014</quote>.</text> <p> </subparagraph></paragraph><paragraph commented="no" id="H768B9AAB166544788D5EABCC072305A5"><enum>(3)</enum><header>Effective <p> dates</header> <p> <subparagraph commented="no" id="H2F7DB54884404EC1BBFB0369C1B949F"><enum>(A)</enum><header>Extension</header><text>The <p> amendments made by paragraph (1) shall apply to acquisitions after December 31, <p> 2007.</text> <p> </subparagraph><subparagraph commented="no" id="HCE3370C9E99D4B6CB1EE71B3E9D514D2"><enum>(B)</enum><header>Conforming <p> amendments</header><text>The amendments made by paragraph (2) shall take effect <p> on the date of the enactment of this Act.</text> <p> </subparagraph></paragraph></subsection><subsection commented="no" id="H0F51FD921A92428898D64553AD3905DA"><enum>(d)</enum><header>First-Time Homebuyer <p> Credit</header> <p> <paragraph commented="no" id="H1EB24B93F95343E7A4D71EFC488F6E14"><enum>(1)</enum><header>In <p> general</header><text>Subsection (i) of section 1400C is amended by striking <p> <quote>2008</quote> and inserting <quote>2010</quote>.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDE1CB30F230D42CC8F445F96656FA7E"><enum>(2)</enum><header>Effective <p> date</header><text>The amendment made by this subsection shall apply to <p> property purchased after December 31, 2007.</text> <p> </paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="idF93030F611B642B38D032280D3BF90B6" section-type="subsequent-section"><enum>323.</enum><header display-inline="yes-display-inline">Enhanced charitable deductions for <p> contributions of food inventory</header> <p> <subsection commented="no" display-inline="no-display-inline" id="id055259AC933E44CBAE26D17F4F3E9031"><enum>(a)</enum><header display-inline="yes-display-inline">Increased amount of deduction</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="id3140E993CAC0430F86135EAE13E8215A"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Clause (iv) of section 170(e)(3)(C) <p> (relating to termination) is amended by striking <quote>December 31, <p> 2007</quote> and inserting <quote>December 31, 2009</quote>.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id791312C4A42843F8AFF1AE583EA93C22"><enum>(2)</enum><header display-inline="yes-display-inline">Effective <p> date</header><text display-inline="yes-display-inline">The amendment made by <p> this subsection shall apply to contributions made after December 31, <p> 2007.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id9398D16C9AD340619774A27743862E07"><enum>(b)</enum><header display-inline="yes-display-inline">Temporary suspension of limitations on <p> charitable contributions</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="idE33FC26EE92F4ACCBB88F341972D178F"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 170(b) is amended by adding at the <p> end the following new paragraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id51E416E220114EB4A49A9714351843F5" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" display-inline="no-display-inline" id="idA7F4638988B345BF9494FA44027EFCBC"><enum>(3)</enum><header display-inline="yes-display-inline">Temporary suspension of limitations on <p> charitable contributions</header><text display-inline="yes-display-inline">In <p> the case of a qualified farmer or rancher (as defined in paragraph (1)(E)(v)), <p> any charitable contribution of food—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id2AE2B764E179442AA18DA3B6A8B57FE9"><enum>(A)</enum><text display-inline="yes-display-inline">to which subsection (e)(3)(C) applies <p> (without regard to clause (ii) thereof), and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idAF5F02642E694A7797ACADD739FADFB0"><enum>(B)</enum><text display-inline="yes-display-inline">which is made during the period beginning <p> on the date of the enactment of this paragraph and before January 1, <p> 2009,</text> <p> </subparagraph><continuation-text commented="no" continuation-text-level="paragraph">shall <p> be treated for purposes of paragraph (1)(E) or (2)(B), whichever is applicable, <p> as if it were a qualified conservation contribution which is made by a <p> qualified farmer or rancher and which otherwise meets the requirements of such <p> paragraph.</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idAFD0F5AE3A4249C7BC30E710E547D131"><enum>(2)</enum><header display-inline="yes-display-inline">Effective <p> date</header><text display-inline="yes-display-inline">The amendment made by <p> this subsection shall apply to taxable years ending after the date of the <p> enactment of this Act.</text> <p> </paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id664C01DA465844B6A5240B24BD744427" section-type="subsequent-section"><enum>324.</enum><header display-inline="yes-display-inline">Extension of enhanced charitable deduction <p> for contributions of book inventory</header> <p> <subsection commented="no" display-inline="no-display-inline" id="idC4A2FB5E571A477C9E0ED77EDC21898B"><enum>(a)</enum><header display-inline="yes-display-inline">Extension</header><text display-inline="yes-display-inline">Clause (iv) of section 170(e)(3)(D) <p> (relating to termination) is amended by striking <quote>December 31, <p> 2007</quote> and inserting <quote>December 31, 2009</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="id569DADF9588C4502A2BDEA701344161D"><enum>(b)</enum><header display-inline="yes-display-inline">Clerical amendment</header><text display-inline="yes-display-inline">Clause (iii) of section 170(e)(3)(D) <p> (relating to certification by donee) is amended by inserting <quote>of <p> books</quote> after <quote>to any contribution</quote>.</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="id78B2D39083D54E4F8BDFBB61470439C6"><enum>(c)</enum><header display-inline="yes-display-inline">Effective <p> date</header><text display-inline="yes-display-inline">The amendments made by <p> this section shall apply to contributions made after December 31, 2007.</text> <p> </subsection></section><section id="id61738961F3B24A6B8D44A4849632B341"><enum>325.</enum><header>Extension and <p> modification of duty suspension on wool products; wool research fund; wool duty <p> refunds</header> <p> <subsection id="ID84c64b9eacc849d0ba202fe2edd55d1d"><enum>(a)</enum><header>Extension of temporary <p> duty reductions</header><text>Each of the following headings of the Harmonized <p> Tariff Schedule of the United States is amended by striking the date in the <p> effective period column and inserting <quote>12/31/2014</quote>:</text> <p> <paragraph id="ID6d9ae43abfd043ea9299d69337438943"><enum>(1)</enum><text>Heading 9902.51.11 <p> (relating to fabrics of worsted wool).</text> <p> </paragraph><paragraph id="ID0a1c950131c54144936ed7ce73d3bede"><enum>(2)</enum><text>Heading 9902.51.13 <p> (relating to yarn of combed wool).</text> <p> </paragraph><paragraph id="ID597a146ddd42465bbd5b19d27d421844"><enum>(3)</enum><text>Heading 9902.51.14 <p> (relating to wool fiber, waste, garnetted stock, combed wool, or wool <p> top).</text> <p> </paragraph><paragraph id="ID2f0da68627914a578531bf342a9de30c"><enum>(4)</enum><text>Heading 9902.51.15 <p> (relating to fabrics of combed wool).</text> <p> </paragraph><paragraph id="ID9636a20ec995439eb23ea192ca92b155"><enum>(5)</enum><text>Heading 9902.51.16 <p> (relating to fabrics of combed wool).</text> <p> </paragraph></subsection><subsection id="ID0862dfacc2204e91bafb4e0482a60028"><enum>(b)</enum><header>Extension of duty <p> refunds and wool research trust fund</header> <p> <paragraph id="IDb43d0bfd066743118d44ece659d4c245"><enum>(1)</enum><header>In <p> general</header><text>Section 4002(c) of the Wool Suit and Textile Trade <p> Extension Act of 2004 (<external-xref legal-doc="public-law" parsable-cite="pl/108/429">Public Law 108–429</external-xref>; 118 Stat. 2603) is amended—</text> <p> <subparagraph id="ID992e332746d8434683964ebd98bb398b"><enum>(A)</enum><text>in paragraph (3)(C), by <p> striking <quote>2010</quote> and inserting <quote>2015</quote>; and</text> <p> </subparagraph><subparagraph id="IDd0bccf80dd104bc28e3b3c4214400ed5"><enum>(B)</enum><text>in paragraph (6)(A), by <p> striking <quote>through 2009</quote> and inserting <quote>through <p> 2014</quote>.</text> <p> </subparagraph></paragraph><paragraph id="IDd936c05b387d47e0bf2e3c0c383f16db"><enum>(2)</enum><header>Sunset</header><text>Section <p> 506(f) of the Trade and Development Act of 2000 (Public 106–200; 114 Stat. 303 <p> (<external-xref legal-doc="usc" parsable-cite="usc/7/7101">7 U.S.C. 7101</external-xref> note)) is amended by striking <quote>2010</quote> and inserting <p> <quote>2015</quote>.</text> <p> </paragraph></subsection></section><enum>IV</enum><header>Extension of tax <p> administration provisions</header> <p> <section commented="no" id="HD8AA2CDE5BDF4DA5B94635B915B26790"><enum>401.</enum><header>Permanent authority <p> for undercover operations</header> <p> <subsection commented="no" id="id1256488E6E674445A43395F8F5471ED7"><enum>(a)</enum><header>In <p> general</header><text display-inline="yes-display-inline">Section 7608(c) <p> (relating to rules relating to undercover operations) is amended by striking <p> paragraph (6).</text> <p> </subsection><subsection commented="no" id="id866CB13866394E5D840EF2D24101DB8C"><enum>(b)</enum><header>Effective <p> date</header><text>The amendment made by this section shall apply to operations <p> conducted after the date of the enactment of this Act.</text> <p> </subsection></section><section id="HCCBC84DF674B459D987009A68BBADAB3"><enum>402.</enum><header>Permanent authority <p> for disclosure of information relating to terrorist activities</header> <p> <subsection id="id7FFC37FAD275446E8D524A87A9103E7B"><enum>(a)</enum><header>Disclosure of return <p> information To apprise appropriate officials of terrorist <p> activities</header><text>Subparagraph (C) of section 6103(i)(3) is amended by <p> striking clause (iv).</text> <p> </subsection><subsection id="H861F113D5C6847F300E85DE3251E0251"><enum>(b)</enum><header>Disclosure upon request <p> of information relating to terrorist activities</header><text>Paragraph (7) of <p> section 6103(i) is amended by striking subparagraph (E).</text> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="HD5A4373760014A61B3256D4C810056EF"><enum>(c)</enum><header>Effective <p> date</header><text>The amendments made by this section shall apply to <p> disclosures after the date of the enactment of this Act.</text> <p> </subsection></section><enum>V</enum><header>Additional tax relief and <p> other tax provisions</header> <p> <subtitle id="id99A72ADE9F6640FA97C82C6D0ABFC26A"><enum>A</enum><header>General <p> provisions</header> <p> <section id="id0A08F726193F4F51B5D0D51B092B9092" section-type="subsequent-section"><enum>501.</enum><header>$8,500 income <p> threshold used to calculate refundable portion of child tax credit</header> <p> <subsection id="idA4FE12AEC23A4F4C950CD492C70E1C92"><enum>(a)</enum><header>In <p> general</header><text display-inline="yes-display-inline">Section 24(d) is <p> amended by adding at the end the following new paragraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idFBA84DF2D7F549E8B703237D72C1BB70" reported-display-style="italic" style="OLC"> <p> <paragraph id="id5431B105A1584128BF7C16F531C5E02F"><enum>(4)</enum><header>Special rule for <p> 2008</header><text>Notwithstanding paragraph (3), in the case of any taxable <p> year beginning in 2008, the dollar amount in effect for such taxable year under <p> paragraph (1)(B)(i) shall be <p> $8,500.</text> <p> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="id942903423C6A4EADA5E42CBFFF5A4A55"><enum>(b)</enum><header>Effective <p> date</header><text>The amendment made by this section shall apply to taxable <p> years beginning after December 31, 2007.</text> <p> </subsection></section><section id="H48F42FBEE3234A1EB7D36DAB6DF762CF"><enum>502.</enum><header>Provisions related to <p> film and television productions</header> <p> <subsection display-inline="no-display-inline" id="id67702DC1BEB24E7BB6AADD1ACBDBC885"><enum>(a)</enum><header>Extension of expensing <p> rules for qualified film and television productions</header><text display-inline="yes-display-inline">Section 181(f) (relating to termination) is <p> amended by striking <quote>December 31, 2008</quote> and inserting <p> <quote>December 31, 2009</quote>.</text> <p> </subsection><subsection id="HB7C1D15E004F40CA974967DEDA5796BB"><enum>(b)</enum><header>Modification of <p> limitation on expensing</header><text display-inline="yes-display-inline">Subparagraph (A) of section 181(a)(2) is <p> amended to read as follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H9BEB7C65593C4479A0481FC45DF0D7BE" reported-display-style="italic" style="OLC"> <p> <subparagraph id="HE0DDB64F3699417AAABA6C869D5244D"><enum>(A)</enum><header>In <p> general</header><text display-inline="yes-display-inline">Paragraph (1) shall <p> not apply to so much of the aggregate cost of any qualified film or television <p> production as exceeds <p> $15,000,000.</text> <p> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection id="HAF01C60D132447498307556DB7ED0000"><enum>(c)</enum><header>Modifications to <p> deduction for domestic activities</header> <p> <paragraph id="HAA122D8AA2A947390056AC00AAF2669B"><enum>(1)</enum><header>Determination of W–2 <p> wages</header><text>Paragraph (2) of section 199(b) is amended by adding at the <p> end the following new subparagraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H9AB2719D70F443FE96DC9F6EBCBEE53" reported-display-style="italic" style="OLC"> <p> <subparagraph id="H6702B1DDCCEF4C3EBBB8BCE359C174ED"><enum>(D)</enum><header>Special rule for <p> qualified film</header><text display-inline="yes-display-inline">In the case of <p> a qualified film, such term shall include compensation for services performed <p> in the United States by actors, production personnel, directors, and <p> producers.</text> <p> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph id="H912ED6814F5649B99C62767534A42000"><enum>(2)</enum><header>Definition of qualified <p> film</header><text>Paragraph (6) of section 199(c) is amended by adding at the <p> end the following: <quote>A qualified film shall include any copyrights, <p> trademarks, or other intangibles with respect to such film. The methods and <p> means of distributing a qualified film shall not affect the availability of the <p> deduction under this section.</quote>.</text> <p> </paragraph><paragraph id="HD77AAB86E6D947D7AB85D1B07354D1F0"><enum>(3)</enum><header>Partnerships</header><text>Subparagraph <p> (A) of section 199(d)(1) is amended by striking <quote>and</quote> at the end <p> of clause (ii), by striking the period at the end of clause (iii) and inserting <p> <quote>, and</quote>, and by adding at the end the following new clause:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="HEE0B60AA2F9E48D5B5856B93E3BB579" reported-display-style="italic" style="OLC"> <p> <clause id="H116DFDD297664872BE5981FCD12700C0"><enum>(iv)</enum><text>in the case of each <p> partner of a partnership, or shareholder of an S corporation, who owns <p> (directly or indirectly) at least 20 percent of the capital interests in such <p> partnership or of the stock of such S corporation—</text> <p> <subclause id="HEA4BAFD83FBE4B40A835A529AE9FFBB8"><enum>(I)</enum><text>such partner or <p> shareholder shall be treated as having engaged directly in any film produced by <p> such partnership or S corporation, and</text> <p> </subclause><subclause id="H591AC914CA6A42E4AF62D31CE300C339"><enum>(II)</enum><text>such partnership or S <p> corporation shall be treated as having engaged directly in any film produced by <p> such partner or <p> shareholder.</text> <p> </subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph></subsection><subsection id="id29DA729B14F94E5F8AC0E8EE6D4CB751"><enum>(d)</enum><header>Conforming <p> amendment</header><text>Section 181(d)(3)(A) is amended by striking <p> <quote>actors</quote> and all that follows and inserting <quote>actors, <p> production personnel, directors, and producers.</quote>.</text> <p> </subsection><subsection id="H3874A4B046EF454FAF73FC683C17ED8"><enum>(e)</enum><header>Effective <p> dates</header> <p> <paragraph id="H934F53DAE46545169ED585D2C6566BF3"><enum>(1)</enum><header>In <p> general</header><text>Except as otherwise provided in this subsection, the <p> amendments made by this section shall apply to qualified film and television <p> productions commencing after December 31, 2007.</text> <p> </paragraph><paragraph id="H74B8BBF1374D4ADCA262A3F1CCDEE800"><enum>(2)</enum><header>Deduction</header><text>The <p> amendments made by subsection (c) shall apply to taxable years beginning after <p> December 31, 2007.</text> <p> </paragraph></subsection></section><section id="id10962EB646654E36B8D28BF8C5C05303" section-type="subsequent-section"><enum>503.</enum><header>Exemption from <p> excise tax for certain wooden arrows designed for use by children</header> <p> <subsection id="id4008998700344A2AA3B1899D5D0A783B"><enum>(a)</enum><header>In <p> general</header><text display-inline="yes-display-inline">Paragraph (2) of <p> section 4161(b) is amended by redesignating subparagraph (B) as subparagraph <p> (C) and by inserting after subparagraph (A) the following new <p> subparagraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id7DC68C856AF946A8AC3B6CF62EA8F419" reported-display-style="italic" style="OLC"> <p> <subparagraph id="IDb091b11f4aa443b68b7cfedb8e3a74c2"><enum>(B)</enum><header>Exemption for certain <p> wooden arrow shafts</header><text>Subparagraph (A) shall not apply to any shaft <p> consisting of all natural wood with no laminations or artificial means of <p> enhancing the spine of such shaft (whether sold separately or incorporated as <p> part of a finished or unfinished product) of a type used in the manufacture of <p> any arrow which after its assembly—</text> <p> <clause id="ID3031ec0a4ccf4f39b07a31924a57fb81"><enum>(i)</enum><text>measures <p> <fraction>5/16</fraction> of an inch or less in diameter, and</text> <p> </clause><clause id="ID06e60d59991d45bb99b384628f236f71"><enum>(ii)</enum><text>is not suitable for use <p> with a bow described in paragraph <p> (1)(A).</text> <p> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="id7559899790D04E9ABBB33A5A05EA713B"><enum>(b)</enum><header>Effective <p> date</header><text>The amendments made by this section shall apply to shafts <p> first sold after the date of enactment of this Act.</text> <p> </subsection></section><section commented="no" display-inline="no-display-inline" id="id63A049EE523841F1A9F6F022595EAFB5" section-type="subsequent-section"><enum>504.</enum><header display-inline="yes-display-inline">Income averaging for amounts received in <p> connection with the Exxon Valdez litigation</header> <p> <subsection commented="no" display-inline="no-display-inline" id="idC9AADD5F89FC4B57974A8693814E975E"><enum>(a)</enum><header display-inline="yes-display-inline">Income averaging of amounts received from <p> the Exxon Valdez litigation</header><text>For purposes of section 1301 of the <p> Internal Revenue Code of 1986—</text> <p> <paragraph id="id4129D9439EFB49ED9812499B5454EB61"><enum>(1)</enum><text>any qualified taxpayer <p> who receives any qualified settlement income in any taxable year shall be <p> treated as engaged in a fishing business (determined without regard to the <p> commercial nature of the business), and</text> <p> </paragraph><paragraph id="idE7DBF7518D85424BBDE60FE0C937B107"><enum>(2)</enum><text>such qualified settlement <p> income shall be treated as income attributable to such a fishing business for <p> such taxable year.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id064418A27C4D44579C182557D51EF910"><enum>(b)</enum><header display-inline="yes-display-inline">Contributions of amounts received to <p> retirement accounts</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="idDADB82709E274B80B34281E56EF2915D"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Any qualified taxpayer who receives <p> qualified settlement income during the taxable year may, at any time before the <p> end of the taxable year in which such income was received, make one or more <p> contributions to an eligible retirement plan of which such qualified taxpayer <p> is a beneficiary in an aggregate amount not to exceed the lesser of—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id3D2183521AC8434E8938D8B7D5FEF330"><enum>(A)</enum><text display-inline="yes-display-inline">$100,000 (reduced by the amount of <p> qualified settlement income contributed to an eligible retirement plan in prior <p> taxable years pursuant to this subsection), or</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idDE5BE802B84549059AE2E8895F8CE7D4"><enum>(B)</enum><text display-inline="yes-display-inline">the amount of qualified settlement income <p> received by the individual during the taxable year.</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id3FADBFACAE3A44DC9CA3C5A34F0D1DE1"><enum>(2)</enum><header display-inline="yes-display-inline">Time when contributions deemed <p> made</header><text display-inline="yes-display-inline">For purposes of <p> paragraph (1), a qualified taxpayer shall be deemed to have made a contribution <p> to an eligible retirement plan on the last day of the taxable year in which <p> such income is received if the contribution is made on account of such taxable <p> year and is made not later than the time prescribed by law for filing the <p> return for such taxable year (not including extensions thereof).</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idE3B9D65AB4964D598A36143AEEFE8230"><enum>(3)</enum><header display-inline="yes-display-inline">Treatment of contributions to eligible <p> retirement plans</header><text display-inline="yes-display-inline">For purposes <p> of the Internal Revenue Code of 1986, if a contribution is made pursuant to <p> paragraph (1) with respect to qualified settlement income, then—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id87345F5710DD450EA3F1CB0E480528B3"><enum>(A)</enum><text display-inline="yes-display-inline">except as provided in paragraph (4)—</text> <p> <clause commented="no" display-inline="no-display-inline" id="id0C854B5C22D64DBFB4C601019D3EC820"><enum>(i)</enum><text display-inline="yes-display-inline">to the extent of such contribution, the <p> qualified settlement income shall not be included in taxable income, and</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="id7FD56B6DEA4C4CAC8FF5BBEBF09FD8ED"><enum>(ii)</enum><text display-inline="yes-display-inline">for purposes of section 72 of such Code, <p> such contribution shall not be considered to be investment in the <p> contract,</text> <p> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB904ED9C5CF04DE5A5956900D2868940"><enum>(B)</enum><text display-inline="yes-display-inline">the qualified taxpayer shall, to the extent <p> of the amount of the contribution, be treated—</text> <p> <clause commented="no" display-inline="no-display-inline" id="id02059CED8FB94C91BF5F93BF95FEEB65"><enum>(i)</enum><text display-inline="yes-display-inline">as having received the qualified settlement <p> income—</text> <p> <subclause commented="no" display-inline="no-display-inline" id="id214B0B0F11C04CF0B21D97231D261AE8"><enum>(I)</enum><text display-inline="yes-display-inline">in the case of a contribution to an <p> individual retirement plan (as defined under section 7701(a)(37) of such Code), <p> in a distribution described in section 408(d)(3) of such Code, and</text> <p> </subclause><subclause commented="no" display-inline="no-display-inline" id="id861863DC9C2745DA9B42FE3EB1D64527"><enum>(II)</enum><text display-inline="yes-display-inline">in the case of any other eligible <p> retirement plan, in an eligible rollover distribution (as defined under section <p> 402(f)(2) of such Code), and</text> <p> </subclause></clause><clause commented="no" display-inline="no-display-inline" id="id663F1A975B9D4F4290DDE0526ADE1D46"><enum>(ii)</enum><text display-inline="yes-display-inline">as having transferred the amount to the <p> eligible retirement plan in a direct trustee to trustee transfer within 60 days <p> of the distribution,</text> <p> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id874A94FBFF6949CEBAB97427C2CCC6A4"><enum>(C)</enum><text>section 408(d)(3)(B) of <p> the Internal Revenue Code of 1986 shall not apply with respect to amounts <p> treated as a rollover under this paragraph, and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id0D66F08198214926B447B6065911C2E0"><enum>(D)</enum><text>section 408A(c)(3)(B) of <p> the Internal Revenue Code of 1986 shall not apply with respect to amounts <p> contributed to a Roth IRA (as defined under section 408A(b) of such Code) or a <p> designated Roth contribution to an applicable retirement plan (within the <p> meaning of section 402A of such Code) under this paragraph.</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8B98939C44004388BB9CE1E03D405204"><enum>(4)</enum><header display-inline="yes-display-inline">Special rule for Roth IRAs and Roth <p> <enum-in-header>401(k)</enum-in-header>s</header><text display-inline="yes-display-inline">For purposes of the Internal Revenue Code <p> of 1986, if a contribution is made pursuant to paragraph (1) with respect to <p> qualified settlement income to a Roth IRA (as defined under section 408A(b) of <p> such Code) or as a designated Roth contribution to an applicable retirement <p> plan (within the meaning of section 402A of such Code), then—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id01694BCDB2EF4FE8B8DF48AB70F83963"><enum>(A)</enum><text display-inline="yes-display-inline">the qualified settlement income shall be <p> includible in taxable income, and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id528820DC9D7F46D88DC7FDF8ACB54633"><enum>(B)</enum><text display-inline="yes-display-inline">for purposes of section 72 of such Code, <p> such contribution shall be considered to be investment in the contract.</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2E495D72D8A1494ABC3DDB5C37EAFC2D"><enum>(5)</enum><header display-inline="yes-display-inline">Eligible retirement plan</header><text display-inline="yes-display-inline">For purpose of this subsection, the term <p> <term>eligible retirement plan</term> has the meaning given such term under <p> <external-xref legal-doc="usc" parsable-cite="usc/26/402">section 402(c)(8)(B)</external-xref> of the Internal Revenue Code of 1986.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id227789E96E3D488A9D29E5467CE7B1AE"><enum>(c)</enum><header display-inline="yes-display-inline">Treatment of qualified settlement income <p> under employment taxes</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="id62590B4636BC47509B82E313ED34BEA2"><enum>(1)</enum><header>SECA</header><text display-inline="yes-display-inline">For purposes of chapter 2 of the Internal <p> Revenue Code of 1986 and section 211 of the Social Security Act, no portion of <p> qualified settlement income received by a qualified taxpayer shall be treated <p> as self-employment income.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4EA5AD4446444E55B49B7EE27A7BB2E1"><enum>(2)</enum><header>FICA</header><text>For <p> purposes of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/21">chapter 21</external-xref> of the Internal Revenue Code of 1986 and section 209 of <p> the Social Security Act, no portion of qualified settlement income received by <p> a qualified taxpayer shall be treated as wages.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idF00FED34BF3C474ABCBCE1E493A07972"><enum>(d)</enum><header display-inline="yes-display-inline">Qualified taxpayer</header><text display-inline="yes-display-inline">For purposes of this section, the term <p> <term>qualified taxpayer</term> means—</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="id03B6F2DD68FD4A028289E44BADF88174"><enum>(1)</enum><text display-inline="yes-display-inline">any individual who is a plaintiff in the <p> civil action In re Exxon Valdez, No. 89–095–CV (HRH) (Consolidated) (D. <p> Alaska); or</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idB22121562E0142DA82B1AFFC45F3E8A0"><enum>(2)</enum><text display-inline="yes-display-inline">any individual who is a beneficiary of the <p> estate of such a plaintiff who—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id198EDF6F39224D898719A8BDC018B0B8"><enum>(A)</enum><text display-inline="yes-display-inline">acquired the right to receive qualified <p> settlement income from that plaintiff; and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id40938948A39B4520B789BB24EB598348"><enum>(B)</enum><text display-inline="yes-display-inline">was the spouse or an immediate relative of <p> that plaintiff.</text> <p> </subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id36DEDF01892F4394B4906ACB28514B70"><enum>(e)</enum><header display-inline="yes-display-inline">Qualified settlement income</header><text display-inline="yes-display-inline">For purposes of this section, the term <p> <term>qualified settlement income</term> means any interest and punitive damage <p> awards which are—</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="id9C4EC050AE3D4D61B3360E464F8E4486"><enum>(1)</enum><text display-inline="yes-display-inline">otherwise includible in taxable income, <p> and</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id365D4F37E5C54B24A9417017B92F7834"><enum>(2)</enum><text display-inline="yes-display-inline">received (whether as lump sums or periodic <p> payments) in connection with the civil action In re Exxon Valdez, No. 89–095–CV <p> (HRH) (Consolidated) (D. Alaska) (whether pre- or post-judgment and whether <p> related to a settlement or judgment).</text> <p> </paragraph></subsection></section><section id="IDDDAFA4D02BB146169F5279D93084F4B5"><enum>505.</enum><header>Certain farming <p> business machinery and equipment treated as 5-year property</header> <p> <subsection id="ID55A1DDE502FF4601B69AEC8CF8425049"><enum>(a)</enum><header>In <p> General</header><text>Section 168(e)(3)(B) (defining 5-year property) is <p> amended by striking <quote>and</quote> at the end of clause (v), by striking <p> the period at the end of clause (vi)(III) and inserting <quote>, and</quote>, <p> and by inserting after clause (vi) the following new clause:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="IDDEEB8ED966D346C08619FEA28502A288" reported-display-style="italic" style="OLC"> <p> <clause id="IDE97F961E02194A70903256CC87ACE428"><enum>(vii)</enum><text>any machinery or <p> equipment (other than any grain bin, cotton ginning asset, fence, or other land <p> improvement) which is used in a farming business (as defined in section <p> 263A(e)(4)), the original use of which commences with the taxpayer after <p> December 31, 2008, and which is placed in service before January 1, <p> 2010.</text> <p> </clause><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection id="ID1F9113B7C8414A8A9FDEB5129BA42BEE"><enum>(b)</enum><header>Alternative <p> System</header><text>The table contained in section 168(g)(3)(B) (relating to <p> special rule for certain property assigned to classes) is amended by inserting <p> after the item relating to subparagraph (B)(iii) the following:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="IDBDD9206BF31A46A3975D5AADCFB1B729" reported-display-style="italic" style="OLC"> <p> <table line-rules="no-gen" rule-weights="4.4.4.4.4.17"> <p> <ttitle></ttitle> <p> <tgroup cols="2" grid-typeface="1.1" thead-tbody-ldg-size="10.10.10" ttitle-size="0"><colspec coldef="txt" colname="col1" colsep="0" min-data-value="50"></colspec><colspec coldef="txt" colname="col2" colsep="0" min-data-value="10"></colspec> <p> <thead> <p> <row><entry align="center" colname="col1"></entry><entry align="center" colname="col2"></entry> <p> </row> <p> </thead> <p> <tbody> <p> <row><entry colname="col1" stub-definition="txt-ldr" stub-hierarchy="2">(B)(vii)</entry><entry colname="col2" entry-modify="fl-hang-hier-2">10</entry> <p> </row> <p> </tbody> <p> </tgroup></table> <p> <after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection id="ID411E29C2FA564CED96EDABE134D23DE0"><enum>(c)</enum><header>Effective <p> Date</header><text>The amendments made by this section shall apply to property <p> placed in service after December 31, 2008.</text> <p> </subsection></section><section commented="no" display-inline="no-display-inline" id="H9D8477112810463991ACBEED40A18E66" section-type="subsequent-section"><enum>506.</enum><header display-inline="yes-display-inline">Modification of penalty on understatement <p> of taxpayer’s liability by tax return preparer</header> <p> <subsection commented="no" display-inline="no-display-inline" id="HB8C8E970224047DD92443D5D7C853148"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsection (a) of section 6694 is amended <p> to read as follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="HAF11EF85843343728574CFE4F62000EE" reported-display-style="italic" style="OLC"> <p> <subsection commented="no" display-inline="no-display-inline" id="H8627BA7332254211832FC98E262269D8"><enum>(a)</enum><header display-inline="yes-display-inline">Understatement due to unreasonable <p> positions</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="HCD63B3393A3B4BB3A4BE38603E476667"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">If a tax return preparer—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="HBDAB7C59AF6C4FD1BEAA5877EA7C57D9"><enum>(A)</enum><text display-inline="yes-display-inline">prepares any return or claim of refund with <p> respect to which any part of an understatement of liability is due to a <p> position described in paragraph (2), and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H81F122C900674C12A4E2F262BE6598E2"><enum>(B)</enum><text display-inline="yes-display-inline">knew (or reasonably should have known) of <p> the position,</text> <p> </subparagraph><continuation-text commented="no" continuation-text-level="paragraph">such <p> tax return preparer shall pay a penalty with respect to each such return or <p> claim in an amount equal to the greater of $1,000 or 50 percent of the income <p> derived (or to be derived) by the tax return preparer with respect to the <p> return or claim.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAE0C8E1B626D448788CE683E17D0245B"><enum>(2)</enum><header display-inline="yes-display-inline">Unreasonable position</header> <p> <subparagraph commented="no" display-inline="no-display-inline" id="H57F5347712C54BB9A44370DFCC1C2F31"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as otherwise provided in this <p> paragraph, a position is described in this paragraph unless there is or was <p> substantial authority for the position.</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD6DCD982FC5947A5BDBB3FD090F727BF"><enum>(B)</enum><header display-inline="yes-display-inline">Disclosed positions</header><text display-inline="yes-display-inline">If the position was disclosed as provided <p> in section 6662(d)(2)(B)(ii)(I) and is not a position to which subparagraph (C) <p> applies, the position is described in this paragraph unless there is a <p> reasonable basis for the position.</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2BA7FDAC571C4687B527E33C02B8168B"><enum>(C)</enum><header display-inline="yes-display-inline">Tax shelters and reportable <p> transactions</header><text display-inline="yes-display-inline">If the position <p> is with respect to a tax shelter (as defined in section 6662(d)(2)(C)(ii)) or a <p> reportable transaction to which section 6662A applies, the position is <p> described in this paragraph unless it is reasonable to believe that the <p> position would more likely than not be sustained on its merits.</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB2D62A7671A34A928CDC6C681C99175F"><enum>(3)</enum><header display-inline="yes-display-inline">Reasonable cause exception</header><text display-inline="yes-display-inline">No penalty shall be imposed under this <p> subsection if it is shown that there is reasonable cause for the understatement <p> and the tax return preparer acted in good <p> faith.</text> <p> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="H3A928E4FC8F941098DD3D00EAAA5972"><enum>(b)</enum><header display-inline="yes-display-inline">Effective <p> date</header><text display-inline="yes-display-inline">The amendment made by <p> this section shall apply—</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="H5F7E2DC222EB4F59AACDE53224E28433"><enum>(1)</enum><text display-inline="yes-display-inline">in the case of a position other than a <p> position described in subparagraph (C) of section 6694(a)(2) of the Internal <p> Revenue Code of 1986 (as amended by this section), to returns prepared after <p> May 25, 2007, and</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H93638FAC93A14123871288CF3577A83F"><enum>(2)</enum><text display-inline="yes-display-inline">in the case of a position described in such <p> subparagraph (C), to returns prepared for taxable years ending after the date <p> of the enactment of this Act.</text> <p> </paragraph></subsection></section></subtitle><subtitle id="id7879F9ECDFED4C1A97850F336FBD219A"><enum>B</enum><header>Paul Wellstone and Pete <p> Domenici Mental Health Parity and Addiction Equity Act of 2008</header> <p> <section id="id21023D094B68488C97EFEF48A2AC15B8"><enum>511.</enum><header>Short <p> title</header><text display-inline="no-display-inline">This subtitle may be <p> cited as the <quote>Paul Wellstone and Pete Domenici Mental Health Parity and <p> Addiction Equity Act of 2008</quote>.</text> <p> </section><section id="id4F44426EAE4C4A7688B3197EF48A7D77"><enum>512.</enum><header>Mental health <p> parity</header> <p> <subsection id="idADFD889BEDFC4B268509D93A58940E65"><enum>(a)</enum><header>Amendments to <p> ERISA</header><text>Section 712 of the <act-name parsable-cite="ERISA">Employee <p> Retirement Income Security Act of 1974</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/29/1185a">29 U.S.C. 1185a</external-xref>) is <p> amended—</text> <p> <paragraph id="id47EBA9478DE44F31948BA9929D87D779"><enum>(1)</enum><text>in subsection (a), by <p> adding at the end the following:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id8BDC20AE8AA44ED8A3F719E0EE23BC0B" reported-display-style="italic" style="OLC"> <p> <paragraph id="idEB004C92EFA5424F9B99DB96B67619E6"><enum>(3)</enum><header>Financial requirements <p> and treatment limitations</header> <p> <subparagraph id="idB642751F645343B18720F35B8DCEC6F7"><enum>(A)</enum><header>In <p> general</header><text>In the case of a group health plan (or health insurance <p> coverage offered in connection with such a plan) that provides both medical and <p> surgical benefits and mental health or substance use disorder benefits, such <p> plan or coverage shall ensure that—</text> <p> <clause id="id2577BF4EE9E24AECB1C85E176CD59942"><enum>(i)</enum><text display-inline="yes-display-inline">the financial requirements applicable to <p> such mental health or substance use disorder benefits are no more restrictive <p> than the predominant financial requirements applied to substantially all <p> medical and surgical benefits covered by the plan (or coverage), and there are <p> no separate cost sharing requirements that are applicable only with respect to <p> mental health or substance use disorder benefits; and</text> <p> </clause><clause id="idFA3E211164B04D849C04B8706862288B"><enum>(ii)</enum><text display-inline="yes-display-inline">the treatment limitations applicable to <p> such mental health or substance use disorder benefits are no more restrictive <p> than the predominant treatment limitations applied to substantially all medical <p> and surgical benefits covered by the plan (or coverage) and there are no <p> separate treatment limitations that are applicable only with respect to mental <p> health or substance use disorder benefits.</text> <p> </clause></subparagraph><subparagraph id="idBCD2C000FD1B410C9950971BB4999DDB"><enum>(B)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this paragraph:</text> <p> <clause id="id760AD6F07F2D4B51B7BFEB5AD5958D3F"><enum>(i)</enum><header>Financial <p> requirement</header><text display-inline="yes-display-inline">The term <p> <quote>financial requirement</quote> includes deductibles, copayments, <p> coinsurance, and out-of-pocket expenses, but excludes an aggregate lifetime <p> limit and an annual limit subject to paragraphs (1) and (2),</text> <p> </clause><clause id="id790C1D86006742BA8CE801FABC815776"><enum>(ii)</enum><header>Predominant</header><text display-inline="yes-display-inline">A financial requirement or treatment limit <p> is considered to be predominant if it is the most common or frequent of such <p> type of limit or requirement.</text> <p> </clause><clause id="id1063A2B6375D44009196D0F9AD8ECB5E"><enum>(iii)</enum><header>Treatment <p> limitation</header><text display-inline="yes-display-inline">The term <p> <term>treatment limitation</term> includes limits on the frequency of <p> treatment, number of visits, days of coverage, or other similar limits on the <p> scope or duration of treatment.</text> <p> </clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1334411159BB4695A0CA0366FD1CB0DB"><enum>(4)</enum><header display-inline="yes-display-inline">Availability of plan <p> information</header><text display-inline="yes-display-inline">The criteria for <p> medical necessity determinations made under the plan with respect to mental <p> health or substance use disorder benefits (or the health insurance coverage <p> offered in connection with the plan with respect to such benefits) shall be <p> made available by the plan administrator (or the health insurance issuer <p> offering such coverage) in accordance with regulations to any current or <p> potential participant, beneficiary, or contracting provider upon request. The <p> reason for any denial under the plan (or coverage) of reimbursement or payment <p> for services with respect to mental health or substance use disorder benefits <p> in the case of any participant or beneficiary shall, on request or as otherwise <p> required, be made available by the plan administrator (or the health insurance <p> issuer offering such coverage) to the participant or beneficiary in accordance <p> with regulations.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id866C0B909DA04257BA6E44442FFB9FA5"><enum>(5)</enum><header>Out-of-network <p> providers</header><text display-inline="yes-display-inline">In the case of a <p> plan or coverage that provides both medical and surgical benefits and mental <p> health or substance use disorder benefits, if the plan or coverage provides <p> coverage for medical or surgical benefits provided by out-of-network providers, <p> the plan or coverage shall provide coverage for mental health or substance use <p> disorder benefits provided by out-of-network providers in a manner that is <p> consistent with the requirements of this <p> section.</text> <p> </paragraph><after-quoted-block>;</after-quoted-block></quoted-block> <p> </paragraph><paragraph id="idDAE3CBA6F2124DDB87BCED740A69CFA7"><enum>(2)</enum><text>in subsection (b), by <p> amending paragraph (2) to read as follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id21E8BEC615BF4CD7993BA62EE90E6DFB" reported-display-style="italic" style="OLC"> <p> <paragraph id="idA3C3029420C84D98800BF6917B07C350"><enum>(2)</enum><text display-inline="yes-display-inline">in the case of a group health plan (or <p> health insurance coverage offered in connection with such a plan) that provides <p> mental health or substance use disorder benefits, as affecting the terms and <p> conditions of the plan or coverage relating to such benefits under the plan or <p> coverage, except as provided in subsection <p> (a).</text> <p> </paragraph><after-quoted-block>;</after-quoted-block></quoted-block> <p> </paragraph><paragraph id="id252FF21F082D4F8F93A616C5C9126AE4"><enum>(3)</enum><text>in subsection (c)—</text> <p> <subparagraph id="idF74515D504F84158B7790DA842262E59"><enum>(A)</enum><text>in paragraph <p> (1)(B)—</text> <p> <clause id="idB21015F975184CA5B6DBC73247C05A83"><enum>(i)</enum><text>by inserting <quote>(or 1 <p> in the case of an employer residing in a State that permits small groups to <p> include a single individual)</quote> after <quote>at least 2</quote> the first <p> place that such appears; and</text> <p> </clause><clause id="id326B621952F4476DA08E990807450F4A"><enum>(ii)</enum><text>by striking <quote>and <p> who employs at least 2 employees on the first day of the plan year</quote>; <p> and</text> <p> </clause></subparagraph><subparagraph id="idA28A48D695834BCC8DF4AEA42300DB5F"><enum>(B)</enum><text>by striking paragraph (2) <p> and inserting the following:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id6539A6B8982F4B8A8A0834E100E9F4C2" reported-display-style="italic" style="OLC"> <p> <paragraph id="idA756114567314631A39BCB1946B10A0D"><enum>(2)</enum><header>Cost Exemption</header> <p> <subparagraph id="id3414A11A116E4846ABD41A680B7CFBCE"><enum>(A)</enum><header>In <p> general</header><text>With respect to a group health plan (or health insurance <p> coverage offered in connection with such a plan), if the application of this <p> section to such plan (or coverage) results in an increase for the plan year <p> involved of the actual total costs of coverage with respect to medical and <p> surgical benefits and mental health and substance use disorder benefits under <p> the plan (as determined and certified under subparagraph (C)) by an amount that <p> exceeds the applicable percentage described in subparagraph (B) of the actual <p> total plan costs, the provisions of this section shall not apply to such plan <p> (or coverage) during the following plan year, and such exemption shall apply to <p> the plan (or coverage) for 1 plan year. An employer may elect to continue to <p> apply mental health and substance use disorder parity pursuant to this section <p> with respect to the group health plan (or coverage) involved regardless of any <p> increase in total costs.</text> <p> </subparagraph><subparagraph id="id26565F52EE6743AF96B907474546ADDC"><enum>(B)</enum><header>Applicable <p> percentage</header><text>With respect to a plan (or coverage), the applicable <p> percentage described in this subparagraph shall be—</text> <p> <clause id="id14492E04E5F645BB94DEB5D8CEC0CC19"><enum>(i)</enum><text>2 percent in the case of <p> the first plan year in which this section is applied; and</text> <p> </clause><clause id="id29C1C87F3E1141A7BBB9EFCF7F741787"><enum>(ii)</enum><text>1 percent in the case of <p> each subsequent plan year.</text> <p> </clause></subparagraph><subparagraph id="idDE59700D2F2F4D188B18CD97F2EA860F"><enum>(C)</enum><header>Determinations by <p> actuaries</header><text>Determinations as to increases in actual costs under a <p> plan (or coverage) for purposes of this section shall be made and certified by <p> a qualified and licensed actuary who is a member in good standing of the <p> American Academy of Actuaries. All such determinations shall be in a written <p> report prepared by the actuary. The report, and all underlying documentation <p> relied upon by the actuary, shall be maintained by the group health plan or <p> health insurance issuer for a period of 6 years following the notification made <p> under subparagraph (E).</text> <p> </subparagraph><subparagraph id="id04CF93E466574775AE6E42BAA1DF3EDF"><enum>(D)</enum><header>6-month <p> determinations</header><text>If a group health plan (or a health insurance <p> issuer offering coverage in connection with a group health plan) seeks an <p> exemption under this paragraph, determinations under subparagraph (A) shall be <p> made after such plan (or coverage) has complied with this section for the first <p> 6 months of the plan year involved.</text> <p> </subparagraph><subparagraph id="idB359DB3DBEFB48568D90FAA03D2DA857"><enum>(E)</enum><header>Notification</header> <p> <clause id="id44178268099D45108729E153C7B790B7"><enum>(i)</enum><header>In <p> general</header><text>A group health plan (or a health insurance issuer <p> offering coverage in connection with a group health plan) that, based upon a <p> certification described under subparagraph (C), qualifies for an exemption <p> under this paragraph, and elects to implement the exemption, shall promptly <p> notify the Secretary, the appropriate State agencies, and participants and <p> beneficiaries in the plan of such election.</text> <p> </clause><clause id="idB74D56594CF94F1A870698978E6ED076"><enum>(ii)</enum><header>Requirement</header><text>A <p> notification to the Secretary under clause (i) shall include—</text> <p> <subclause id="id01452903B4384C658D26CB2697E71D7C"><enum>(I)</enum><text>a description of the <p> number of covered lives under the plan (or coverage) involved at the time of <p> the notification, and as applicable, at the time of any prior election of the <p> cost-exemption under this paragraph by such plan (or coverage);</text> <p> </subclause><subclause id="idF30A61F5547A4D76BCB94FA8E7CCD9FC"><enum>(II)</enum><text>for both the plan year <p> upon which a cost exemption is sought and the year prior, a description of the <p> actual total costs of coverage with respect to medical and surgical benefits <p> and mental health and substance use disorder benefits under the plan; <p> and</text> <p> </subclause><subclause id="idCFD59BD4BDDE4257BD3AFF6075018360"><enum>(III)</enum><text>for both the plan year <p> upon which a cost exemption is sought and the year prior, the actual total <p> costs of coverage with respect to mental health and substance use disorder <p> benefits under the plan.</text> <p> </subclause></clause><clause id="id5CCFADC6EF3946B3B7E2B759600848C8"><enum>(iii)</enum><header>Confidentiality</header><text display-inline="yes-display-inline">A notification to the Secretary under <p> clause (i) shall be confidential. The Secretary shall make available, upon <p> request and on not more than an annual basis, an anonymous itemization of such <p> notifications, that includes—</text> <p> <subclause id="idCCA053408BF546F6B385E730120C6515"><enum>(I)</enum><text>a breakdown of States by <p> the size and type of employers submitting such notification; and</text> <p> </subclause><subclause id="id303C0B06AF9F4151A454FB0EC951C9C2"><enum>(II)</enum><text>a summary of the data <p> received under clause (ii).</text> <p> </subclause></clause></subparagraph><subparagraph id="id1C2FEC7518854505A3A0363AB80954E5"><enum>(F)</enum><header>Audits by appropriate <p> agencies</header><text>To determine compliance with this paragraph, the <p> Secretary may audit the books and records of a group health plan or health <p> insurance issuer relating to an exemption, including any actuarial reports <p> prepared pursuant to subparagraph (C), during the 6 year period following the <p> notification of such exemption under subparagraph (E). A State agency receiving <p> a notification under subparagraph (E) may also conduct such an audit with <p> respect to an exemption covered by such <p> notification.</text> <p> </subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block> <p> </subparagraph></paragraph><paragraph id="id49777562B71A48D4B5BFE15FD8B3AC22"><enum>(4)</enum><text>in subsection (e), by <p> striking paragraph (4) and inserting the following:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id112E8A7B2AD741098738F90E7FFBDFA3" reported-display-style="italic" style="OLC"> <p> <paragraph id="idE8E6BE609D464035B93FE61E8FAFFFB0"><enum>(4)</enum><header>Mental health <p> benefits</header><text>The term <quote>mental health benefits</quote> means <p> benefits with respect to services for mental health conditions, as defined <p> under the terms of the plan and in accordance with applicable Federal and State <p> law.</text> <p> </paragraph><paragraph id="id1F172A5ACC434F058525F0CF83349B5A"><enum>(5)</enum><header>Substance use disorder <p> benefits</header><text display-inline="yes-display-inline">The term <p> <quote>substance use disorder benefits</quote> means benefits with respect to <p> services for substance use disorders, as defined under the terms of the plan <p> and in accordance with applicable Federal and State <p> law.</text> <p> </paragraph><after-quoted-block>;</after-quoted-block></quoted-block> <p> </paragraph><paragraph id="id2B57EF28DAD946289C9B99A3C2D5421C"><enum>(5)</enum><text>by striking subsection <p> (f);</text> <p> </paragraph><paragraph id="idC74C9900A3F042C0862AF2A67ED27BD8"><enum>(6)</enum><text>by inserting after <p> subsection (e) the following:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idBEE2765BA7C34BE8BC4F5374EEB6BC9F" reported-display-style="italic" style="OLC"> <p> <subsection commented="no" id="id71A5F400C8FB4EAC8378E155C1445778"><enum>(f)</enum><header>Secretary <p> report</header><text display-inline="yes-display-inline">The Secretary shall, <p> by January 1, 2012, and every two years thereafter, submit to the appropriate <p> committees of Congress a report on compliance of group health plans (and health <p> insurance coverage offered in connection with such plans) with the requirements <p> of this section. Such report shall include the results of any surveys or audits <p> on compliance of group health plans (and health insurance coverage offered in <p> connection with such plans) with such requirements and an analysis of the <p> reasons for any failures to comply.</text> <p> </subsection><subsection commented="no" id="idE66ED273AA81430BBF13567A739567FA"><enum>(g)</enum><header>Notice and <p> assistance</header><text display-inline="yes-display-inline">The Secretary, in <p> cooperation with the Secretaries of Health and Human Services and Treasury, as <p> appropriate, shall publish and widely disseminate guidance and information for <p> group health plans, participants and beneficiaries, applicable State and local <p> regulatory bodies, and the National Association of Insurance Commissioners <p> concerning the requirements of this section and shall provide assistance <p> concerning such requirements and the continued operation of applicable State <p> law. Such guidance and information shall inform participants and beneficiaries <p> of how they may obtain assistance under this section, including, where <p> appropriate, assistance from State consumer and insurance <p> agencies.</text> <p> </subsection><after-quoted-block>;</after-quoted-block></quoted-block> <p> </paragraph><paragraph id="id21E877DC04A8483CB1F2E14B37F9CB94"><enum>(7)</enum><text display-inline="yes-display-inline">by striking <quote>mental health <p> benefits</quote> and inserting <quote>mental health and substance use disorder <p> benefits</quote> each place it appears in subsections (a)(1)(B)(i), (a)(1)(C), <p> (a)(2)(B)(i), and (a)(2)(C); and</text> <p> </paragraph><paragraph display-inline="no-display-inline" id="id2CDA8630C9184A63BFF65725BB6220F5"><enum>(8)</enum><text display-inline="yes-display-inline">by striking <quote>mental health <p> benefits</quote> and inserting <quote>mental health or substance use disorder <p> benefits</quote> each place it appears (other than in any provision amended by <p> the previous paragraph).</text> <p> </paragraph></subsection><subsection display-inline="no-display-inline" id="idE33FB394B02147A798FA67B2B088920E"><enum>(b)</enum><header>Amendments to Public <p> Health Service Act</header><text>Section 2705 of the <p> <act-name parsable-cite="ERISA">Public Health Service Act </act-name> (42 <p> U.S.C. 300gg–5) is amended—</text> <p> <paragraph id="idA0566286262E49A1A50E2D81CD048DBB"><enum>(1)</enum><text>in subsection (a), by <p> adding at the end the following:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idE185CF2006E443B2B3E2D0C991241EC9" reported-display-style="italic" style="OLC"> <p> <paragraph id="idEA18807A75D7449890F447962837085F"><enum>(3)</enum><header>Financial requirements <p> and treatment limitations</header> <p> <subparagraph id="idEC23E1CD694241C08CA7669299E3BA1C"><enum>(A)</enum><header>In <p> general</header><text display-inline="yes-display-inline">In the case of a <p> group health plan (or health insurance coverage offered in connection with such <p> a plan) that provides both medical and surgical benefits and mental health or <p> substance use disorder benefits, such plan or coverage shall ensure <p> that—</text> <p> <clause id="idF70DB4004D794BFCA9FBBE2C9AAB1116"><enum>(i)</enum><text display-inline="yes-display-inline">the financial requirements applicable to <p> such mental health or substance use disorder benefits are no more restrictive <p> than the predominant financial requirements applied to substantially all <p> medical and surgical benefits covered by the plan (or coverage), and there are <p> no separate cost sharing requirements that are applicable only with respect to <p> mental health or substance use disorder benefits; and</text> <p> </clause><clause id="idC9B8C4D31E954AB69B864A3B2233FB7E"><enum>(ii)</enum><text display-inline="yes-display-inline">the treatment limitations applicable to <p> such mental health or substance use disorder benefits are no more restrictive <p> than the predominant treatment limitations applied to substantially all medical <p> and surgical benefits covered by the plan (or coverage) and there are no <p> separate treatment limitations that are applicable only with respect to mental <p> health or substance use disorder benefits.</text> <p> </clause></subparagraph><subparagraph id="id5FD8178C10ED4CD68942B7D5640601AC"><enum>(B)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this paragraph:</text> <p> <clause id="id5675E9096DC94E7DAA8FDFA8FA5EC962"><enum>(i)</enum><header>Financial <p> requirement</header><text display-inline="yes-display-inline">The term <p> <quote>financial requirement</quote> includes deductibles, copayments, <p> coinsurance, and out-of-pocket expenses, but excludes an aggregate lifetime <p> limit and an annual limit subject to paragraphs (1) and (2).</text> <p> </clause><clause id="id0780F63E04F14EDFB092084884417C09"><enum>(ii)</enum><header>Predominant</header><text display-inline="yes-display-inline">A financial requirement or treatment limit <p> is considered to be predominant if it is the most common or frequent of such <p> type of limit or requirement.</text> <p> </clause><clause id="id1575B18BB2154BA9B28172C68DD5C25B"><enum>(iii)</enum><header>Treatment <p> limitation</header><text display-inline="yes-display-inline">The term <p> <term>treatment limitation</term> includes limits on the frequency of <p> treatment, number of visits, days of coverage, or other similar limits on the <p> scope or duration of treatment.</text> <p> </clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idBF772E0FC1AB4ABEA6771CB1811958ED"><enum>(4)</enum><header display-inline="yes-display-inline">Availability of plan <p> information</header><text display-inline="yes-display-inline">The criteria for <p> medical necessity determinations made under the plan with respect to mental <p> health or substance use disorder benefits (or the health insurance coverage <p> offered in connection with the plan with respect to such benefits) shall be <p> made available by the plan administrator (or the health insurance issuer <p> offering such coverage) in accordance with regulations to any current or <p> potential participant, beneficiary, or contracting provider upon request. The <p> reason for any denial under the plan (or coverage) of reimbursement or payment <p> for services with respect to mental health or substance use disorder benefits <p> in the case of any participant or beneficiary shall, on request or as otherwise <p> required, be made available by the plan administrator (or the health insurance <p> issuer offering such coverage) to the participant or beneficiary in accordance <p> with regulations.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA29FC71BD4E54D67A0C64013758F0230"><enum>(5)</enum><header>Out-of-network <p> providers</header><text display-inline="yes-display-inline">In the case of a <p> plan or coverage that provides both medical and surgical benefits and mental <p> health or substance use disorder benefits, if the plan or coverage provides <p> coverage for medical or surgical benefits provided by out-of-network providers, <p> the plan or coverage shall provide coverage for mental health or substance use <p> disorder benefits provided by out-of-network providers in a manner that is <p> consistent with the requirements of this <p> section.</text> <p> </paragraph><after-quoted-block>;</after-quoted-block></quoted-block> <p> </paragraph><paragraph id="idCA573B614786421AB83D44D84E18F051"><enum>(2)</enum><text>in subsection (b), by <p> amending paragraph (2) to read as follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id0F6F8802A08C43D786F69551E6B3F315" reported-display-style="italic" style="OLC"> <p> <paragraph id="idCF85BD6895D8400788427A916738FC2F"><enum>(2)</enum><text display-inline="yes-display-inline">in the case of a group health plan (or <p> health insurance coverage offered in connection with such a plan) that provides <p> mental health or substance use disorder benefits, as affecting the terms and <p> conditions of the plan or coverage relating to such benefits under the plan or <p> coverage, except as provided in subsection <p> (a).</text> <p> </paragraph><after-quoted-block>;</after-quoted-block></quoted-block> <p> </paragraph><paragraph id="idE0B4A6E31B8546289970297ADC962748"><enum>(3)</enum><text>in subsection (c)—</text> <p> <subparagraph id="id8F50329FD48D40BB8FF399B34EDC367E"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (1), by inserting before the <p> period the following: <quote>(as defined in section 2791(e)(4), except that for <p> purposes of this paragraph such term shall include employers with 1 employee in <p> the case of an employer residing in a State that permits small groups to <p> include a single individual)</quote>; and</text> <p> </subparagraph><subparagraph id="id3A9327019B584ED493D2A3906252AF7E"><enum>(B)</enum><text>by striking paragraph (2) <p> and inserting the following:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id5AB8C32A9B9B46B887A36F3E9AFD7803" reported-display-style="italic" style="OLC"> <p> <paragraph id="idBD55D1942E264619873318CE879A8FF2"><enum>(2)</enum><header>Cost Exemption</header> <p> <subparagraph id="idCDBE563BBAA64328B04747F057CE2C92"><enum>(A)</enum><header>In <p> general</header><text>With respect to a group health plan (or health insurance <p> coverage offered in connection with such a plan), if the application of this <p> section to such plan (or coverage) results in an increase for the plan year <p> involved of the actual total costs of coverage with respect to medical and <p> surgical benefits and mental health and substance use disorder benefits under <p> the plan (as determined and certified under subparagraph (C)) by an amount that <p> exceeds the applicable percentage described in subparagraph (B) of the actual <p> total plan costs, the provisions of this section shall not apply to such plan <p> (or coverage) during the following plan year, and such exemption shall apply to <p> the plan (or coverage) for 1 plan year. An employer may elect to continue to <p> apply mental health and substance use disorder parity pursuant to this section <p> with respect to the group health plan (or coverage) involved regardless of any <p> increase in total costs.</text> <p> </subparagraph><subparagraph id="idAB55EFAD60A54D01A3918CF41D63E598"><enum>(B)</enum><header>Applicable <p> percentage</header><text>With respect to a plan (or coverage), the applicable <p> percentage described in this subparagraph shall be—</text> <p> <clause id="id85AA0FA906974806B007555F197B4A55"><enum>(i)</enum><text>2 percent in the case of <p> the first plan year in which this section is applied; and</text> <p> </clause><clause id="id2B18463AD3964117971C8E7CBC100C58"><enum>(ii)</enum><text>1 percent in the case of <p> each subsequent plan year.</text> <p> </clause></subparagraph><subparagraph id="idD3873E935B4641E2A249347118A213D9"><enum>(C)</enum><header>Determinations by <p> actuaries</header><text>Determinations as to increases in actual costs under a <p> plan (or coverage) for purposes of this section shall be made and certified by <p> a qualified and licensed actuary who is a member in good standing of the <p> American Academy of Actuaries. All such determinations shall be in a written <p> report prepared by the actuary. The report, and all underlying documentation <p> relied upon by the actuary, shall be maintained by the group health plan or <p> health insurance issuer for a period of 6 years following the notification made <p> under subparagraph (E).</text> <p> </subparagraph><subparagraph id="idA6818363A00D472EB076B367CB49EC2C"><enum>(D)</enum><header>6-month <p> determinations</header><text>If a group health plan (or a health insurance <p> issuer offering coverage in connection with a group health plan) seeks an <p> exemption under this paragraph, determinations under subparagraph (A) shall be <p> made after such plan (or coverage) has complied with this section for the first <p> 6 months of the plan year involved.</text> <p> </subparagraph><subparagraph display-inline="no-display-inline" id="id593955C96DBF4722A7B765947FB357B9"><enum>(E)</enum><header>Notification</header> <p> <clause id="id40EF2A3D3DA041779997E6149586D26F"><enum>(i)</enum><header>In <p> general</header><text>A group health plan (or a health insurance issuer <p> offering coverage in connection with a group health plan) that, based upon a <p> certification described under subparagraph (C), qualifies for an exemption <p> under this paragraph, and elects to implement the exemption, shall promptly <p> notify the Secretary, the appropriate State agencies, and participants and <p> beneficiaries in the plan of such election.</text> <p> </clause><clause id="idD53388ACB51D4A1C8B3E5C0A519FC2F7"><enum>(ii)</enum><header>Requirement</header><text>A <p> notification to the Secretary under clause (i) shall include—</text> <p> <subclause id="idC5398CB9BEBE4E11863394D85A03604E"><enum>(I)</enum><text>a description of the <p> number of covered lives under the plan (or coverage) involved at the time of <p> the notification, and as applicable, at the time of any prior election of the <p> cost-exemption under this paragraph by such plan (or coverage);</text> <p> </subclause><subclause id="id88E3FA64D12F486F86ADE00C95BACFBE"><enum>(II)</enum><text>for both the plan year <p> upon which a cost exemption is sought and the year prior, a description of the <p> actual total costs of coverage with respect to medical and surgical benefits <p> and mental health and substance use disorder benefits under the plan; <p> and</text> <p> </subclause><subclause id="idD4129D2077C340EAB6125DF7DA1398AC"><enum>(III)</enum><text>for both the plan year <p> upon which a cost exemption is sought and the year prior, the actual total <p> costs of coverage with respect to mental health and substance use disorder <p> benefits under the plan.</text> <p> </subclause></clause><clause id="id958EDC9583CF473C9885DDC30E6A0DAD"><enum>(iii)</enum><header>Confidentiality</header><text display-inline="yes-display-inline">A notification to the Secretary under <p> clause (i) shall be confidential. The Secretary shall make available, upon <p> request and on not more than an annual basis, an anonymous itemization of such <p> notifications, that includes—</text> <p> <subclause id="id78FC4B4406124660AAC7C4A05112FBD7"><enum>(I)</enum><text>a breakdown of States by <p> the size and type of employers submitting such notification; and</text> <p> </subclause><subclause id="idDA40354121D44896969A15E9935EF0A2"><enum>(II)</enum><text>a summary of the data <p> received under clause (ii).</text> <p> </subclause></clause></subparagraph><subparagraph id="id37F87F4A46804DDFA6A4B480AEC739FD"><enum>(F)</enum><header>Audits by appropriate <p> agencies</header><text>To determine compliance with this paragraph, the <p> Secretary may audit the books and records of a group health plan or health <p> insurance issuer relating to an exemption, including any actuarial reports <p> prepared pursuant to subparagraph (C), during the 6 year period following the <p> notification of such exemption under subparagraph (E). A State agency receiving <p> a notification under subparagraph (E) may also conduct such an audit with <p> respect to an exemption covered by such <p> notification.</text> <p> </subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block> <p> </subparagraph></paragraph><paragraph id="id4C84DB77C6A841C6878A83B0FE611FA7"><enum>(4)</enum><text>in subsection (e), by <p> striking paragraph (4) and inserting the following:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id0D832CFC623140D88FCFDEFF623CD8E2" reported-display-style="italic" style="OLC"> <p> <paragraph id="id2C1CD580C664404C88B7FCE3B02F4A5C"><enum>(4)</enum><header>Mental health <p> benefits</header><text>The term <quote>mental health benefits</quote> means <p> benefits with respect to services for mental health conditions, as defined <p> under the terms of the plan and in accordance with applicable Federal and State <p> law.</text> <p> </paragraph><paragraph id="id87F1D45A498C44738A29079A3CB5C7F3"><enum>(5)</enum><header>Substance use disorder <p> benefits</header><text display-inline="yes-display-inline">The term <p> <quote>substance use disorder benefits</quote> means benefits with respect to <p> services for substance use disorders, as defined under the terms of the plan <p> and in accordance with applicable Federal and State <p> law.</text> <p> </paragraph><after-quoted-block>;</after-quoted-block></quoted-block> <p> </paragraph><paragraph id="idA77AE6C7EBAE487AAC795263963C5FA1"><enum>(5)</enum><text>by striking subsection <p> (f);</text> <p> </paragraph><paragraph id="id602FFBDE8DCD4787BC24BD96ABF9254A"><enum>(6)</enum><text display-inline="yes-display-inline">by striking <quote>mental health <p> benefits</quote> and inserting <quote>mental health and substance use disorder <p> benefits</quote> each place it appears in subsections (a)(1)(B)(i), (a)(1)(C), <p> (a)(2)(B)(i), and (a)(2)(C); and</text> <p> </paragraph><paragraph display-inline="no-display-inline" id="id6DD77C1A2C4B41CA863E73D36A4BC2B2"><enum>(7)</enum><text display-inline="yes-display-inline">by striking <quote>mental health <p> benefits</quote> and inserting <quote>mental health or substance use disorder <p> benefits</quote> each place it appears (other than in any provision amended by <p> the previous paragraph).</text> <p> </paragraph></subsection><subsection display-inline="no-display-inline" id="idC13B16CEB1D940208F9764A68A0A0878"><enum>(c)</enum><header>Amendments to Internal <p> Revenue Code</header><text>Section 9812 of the <act-name parsable-cite="ERISA">Internal Revenue Code of 1986 </act-name> is <p> amended—</text> <p> <paragraph id="id33991CA2751945D1BB49922CCE141EBB"><enum>(1)</enum><text>in subsection (a), by <p> adding at the end the following:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id8EAFBE47CC8A455DAFA5183860CE1FB1" reported-display-style="italic" style="OLC"> <p> <paragraph id="id2C2F4F42A3974F75AD455B482BF2569E"><enum>(3)</enum><header>Financial requirements <p> and treatment limitations</header> <p> <subparagraph id="id57504117E807436E86EBED9AA2A7221C"><enum>(A)</enum><header>In <p> general</header><text display-inline="yes-display-inline">In the case of a <p> group health plan that provides both medical and surgical benefits and mental <p> health or substance use disorder benefits, such plan shall ensure that—</text> <p> <clause id="id444B871BEAAF4BC0A2CD93D39F4D3D52"><enum>(i)</enum><text display-inline="yes-display-inline">the financial requirements applicable to <p> such mental health or substance use disorder benefits are no more restrictive <p> than the predominant financial requirements applied to substantially all <p> medical and surgical benefits covered by the plan, and there are no separate <p> cost sharing requirements that are applicable only with respect to mental <p> health or substance use disorder benefits; and</text> <p> </clause><clause id="id068054F7ACCA4D349F84CE82367D2E6F"><enum>(ii)</enum><text display-inline="yes-display-inline">the treatment limitations applicable to <p> such mental health or substance use disorder benefits are no more restrictive <p> than the predominant treatment limitations applied to substantially all medical <p> and surgical benefits covered by the plan and there are no separate treatment <p> limitations that are applicable only with respect to mental health or substance <p> use disorder benefits.</text> <p> </clause></subparagraph><subparagraph id="id32D7DD85001C4CA3AB11B3D533D06064"><enum>(B)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this paragraph:</text> <p> <clause id="id756ABFB17ADC4A2182FE1AA5A6569B5A"><enum>(i)</enum><header>Financial <p> requirement</header><text display-inline="yes-display-inline">The term <p> <quote>financial requirement</quote> includes deductibles, copayments, <p> coinsurance, and out-of-pocket expenses, but excludes an aggregate lifetime <p> limit and an annual limit subject to paragraphs (1) and (2),</text> <p> </clause><clause id="id68CD21E575EA45EE9B6563DDC5DB6202"><enum>(ii)</enum><header>Predominant</header><text display-inline="yes-display-inline">A financial requirement or treatment limit <p> is considered to be predominant if it is the most common or frequent of such <p> type of limit or requirement.</text> <p> </clause><clause id="idD77F84226BA84F6B93EDCED99031BA60"><enum>(iii)</enum><header>Treatment <p> limitation</header><text display-inline="yes-display-inline">The term <p> <term>treatment limitation</term> includes limits on the frequency of <p> treatment, number of visits, days of coverage, or other similar limits on the <p> scope or duration of treatment.</text> <p> </clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id35716F17BB27427CAC2D296EB6A52DD9"><enum>(4)</enum><header display-inline="yes-display-inline">Availability of plan <p> information</header><text display-inline="yes-display-inline">The criteria for <p> medical necessity determinations made under the plan with respect to mental <p> health or substance use disorder benefits shall be made available by the plan <p> administrator in accordance with regulations to any current or potential <p> participant, beneficiary, or contracting provider upon request. The reason for <p> any denial under the plan of reimbursement or payment for services with respect <p> to mental health or substance use disorder benefits in the case of any <p> participant or beneficiary shall, on request or as otherwise required, be made <p> available by the plan administrator to the participant or beneficiary in <p> accordance with regulations.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id0D4FF0AC1AAE44489DD57CC2244301F2"><enum>(5)</enum><header>Out-of-network <p> providers</header><text display-inline="yes-display-inline">In the case of a <p> plan that provides both medical and surgical benefits and mental health or <p> substance use disorder benefits, if the plan provides coverage for medical or <p> surgical benefits provided by out-of-network providers, the plan shall provide <p> coverage for mental health or substance use disorder benefits provided by <p> out-of-network providers in a manner that is consistent with the requirements <p> of this <p> section.</text> <p> </paragraph><after-quoted-block>;</after-quoted-block></quoted-block> <p> </paragraph><paragraph id="idE7627C98714B4DBFB9C9508180C23997"><enum>(2)</enum><text>in subsection (b), by <p> amending paragraph (2) to read as follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id2541AA5FC9A44844AEA6D69A95BE9490" reported-display-style="italic" style="OLC"> <p> <paragraph id="idBAEA27489776445EB16F70520FFD6555"><enum>(2)</enum><text display-inline="yes-display-inline">in the case of a group health plan that <p> provides mental health or substance use disorder benefits, as affecting the <p> terms and conditions of the plan relating to such benefits under the plan, <p> except as provided in subsection <p> (a).</text> <p> </paragraph><after-quoted-block>;</after-quoted-block></quoted-block> <p> </paragraph><paragraph id="id490C0018E3E14412B230CC58F9E003A6"><enum>(3)</enum><text>in subsection (c)—</text> <p> <subparagraph display-inline="no-display-inline" id="id6E47FF658DC347C3B01B454D3218F5AE"><enum>(A)</enum><text display-inline="yes-display-inline">by amending paragraph (1) to read as <p> follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id9DB3946E8DE1464E88F8EF7547CE5766" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" id="id6371404C91104972A435F52B783208E2"><enum>(1)</enum><header>Small employer <p> exemption</header> <p> <subparagraph commented="no" id="id65AD99F86ABA4E8DB8C68E280BBB9FC5"><enum>(A)</enum><header>In <p> general</header><text display-inline="yes-display-inline">This section shall <p> not apply to any group health plan for any plan year of a small <p> employer.</text> <p> </subparagraph><subparagraph commented="no" id="id7912D70536DF4D51BD02712FB2633D7F"><enum>(B)</enum><header>Small <p> employer</header><text>For purposes of subparagraph (A), the term <quote>small <p> employer</quote> means, with respect to a calendar year and a plan year, an <p> employer who employed an average of at least 2 (or 1 in the case of an employer <p> residing in a State that permits small groups to include a single individual) <p> but not more than 50 employees on business days during the preceding calendar <p> year. For purposes of the preceding sentence, all persons treated as a single <p> employer under subsection (b), (c), (m), or (o) of section 414 shall be treated <p> as 1 employer and rules similar to rules of subparagraphs (B) and (C) of <p> section 4980D(d)(2) shall apply.</text> <p> </subparagraph></paragraph><after-quoted-block>; <p> and</after-quoted-block></quoted-block> <p> </subparagraph><subparagraph id="idBCC9CB467A1D41EC8D878857DF70D860"><enum>(B)</enum><text>by striking paragraph (2) <p> and inserting the following:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id5E52FB5F6F42410D8FF8DF7E36D6E599" reported-display-style="italic" style="OLC"> <p> <paragraph id="idE808C60A72724424A288347F4055A0B3"><enum>(2)</enum><header>Cost exemption</header> <p> <subparagraph id="id08CC36BE81F94E7C85086839A6A0456F"><enum>(A)</enum><header>In <p> general</header><text>With respect to a group health plan, if the application <p> of this section to such plan results in an increase for the plan year involved <p> of the actual total costs of coverage with respect to medical and surgical <p> benefits and mental health and substance use disorder benefits under the plan <p> (as determined and certified under subparagraph (C)) by an amount that exceeds <p> the applicable percentage described in subparagraph (B) of the actual total <p> plan costs, the provisions of this section shall not apply to such plan during <p> the following plan year, and such exemption shall apply to the plan for 1 plan <p> year. An employer may elect to continue to apply mental health and substance <p> use disorder parity pursuant to this section with respect to the group health <p> plan involved regardless of any increase in total costs.</text> <p> </subparagraph><subparagraph id="id3E207073E30C45CCAD786871BF823878"><enum>(B)</enum><header>Applicable <p> percentage</header><text>With respect to a plan, the applicable percentage <p> described in this subparagraph shall be—</text> <p> <clause id="id7129C1FE72F54A26ABC4C14A69A7AEF7"><enum>(i)</enum><text>2 percent in the case of <p> the first plan year in which this section is applied; and</text> <p> </clause><clause id="idBD5060A193CA4E7F94BF29107C5DEF72"><enum>(ii)</enum><text>1 percent in the case of <p> each subsequent plan year.</text> <p> </clause></subparagraph><subparagraph id="id915AFAC8BB51498D93DB5D4D394CF2F1"><enum>(C)</enum><header>Determinations by <p> actuaries</header><text>Determinations as to increases in actual costs under a <p> plan for purposes of this section shall be made and certified by a qualified <p> and licensed actuary who is a member in good standing of the American Academy <p> of Actuaries. All such determinations shall be in a written report prepared by <p> the actuary. The report, and all underlying documentation relied upon by the <p> actuary, shall be maintained by the group health plan for a period of 6 years <p> following the notification made under subparagraph (E).</text> <p> </subparagraph><subparagraph id="id83E135FAC75A4F6AB8B2B734D9678279"><enum>(D)</enum><header>6-month <p> determinations</header><text>If a group health plan seeks an exemption under <p> this paragraph, determinations under subparagraph (A) shall be made after such <p> plan has complied with this section for the first 6 months of the plan year <p> involved.</text> <p> </subparagraph><subparagraph display-inline="no-display-inline" id="idFE3E2082CD3E43C7AC00920FFD11C246"><enum>(E)</enum><header>Notification</header> <p> <clause id="id2A3DDCCF874D4F60A582EA27943F9A54"><enum>(i)</enum><header>In <p> general</header><text>A group health plan that, based upon a certification <p> described under subparagraph (C), qualifies for an exemption under this <p> paragraph, and elects to implement the exemption, shall promptly notify the <p> Secretary, the appropriate State agencies, and participants and beneficiaries <p> in the plan of such election.</text> <p> </clause><clause id="id6DFF65EE191D4FCC96FA76FEB7C97D39"><enum>(ii)</enum><header>Requirement</header><text>A <p> notification to the Secretary under clause (i) shall include—</text> <p> <subclause id="id1F0F1C0F73FF481FBF602955AC46F0D8"><enum>(I)</enum><text>a description of the <p> number of covered lives under the plan involved at the time of the <p> notification, and as applicable, at the time of any prior election of the <p> cost-exemption under this paragraph by such plan;</text> <p> </subclause><subclause id="idFBB4F16BDD9E4C5BB95EB4F585447E93"><enum>(II)</enum><text>for both the plan year <p> upon which a cost exemption is sought and the year prior, a description of the <p> actual total costs of coverage with respect to medical and surgical benefits <p> and mental health and substance use disorder benefits under the plan; <p> and</text> <p> </subclause><subclause id="id516E7F9AE4164F82A6A88CCA8C95DF9F"><enum>(III)</enum><text>for both the plan year <p> upon which a cost exemption is sought and the year prior, the actual total <p> costs of coverage with respect to mental health and substance use disorder <p> benefits under the plan.</text> <p> </subclause></clause><clause id="id1E0AFBFACE0243F884D15D0203AE941F"><enum>(iii)</enum><header>Confidentiality</header><text display-inline="yes-display-inline">A notification to the Secretary under <p> clause (i) shall be confidential. The Secretary shall make available, upon <p> request and on not more than an annual basis, an anonymous itemization of such <p> notifications, that includes—</text> <p> <subclause id="idAB4B95CCC68948668D53CDF168E654AB"><enum>(I)</enum><text>a breakdown of States by <p> the size and type of employers submitting such notification; and</text> <p> </subclause><subclause id="id615C1AD2424144A7B3A8665DE1767B11"><enum>(II)</enum><text>a summary of the data <p> received under clause (ii).</text> <p> </subclause></clause></subparagraph><subparagraph id="idD4E93B7BED4142AFAF7F7ADDEB22903A"><enum>(F)</enum><header>Audits by appropriate <p> agencies</header><text>To determine compliance with this paragraph, the <p> Secretary may audit the books and records of a group health plan relating to an <p> exemption, including any actuarial reports prepared pursuant to subparagraph <p> (C), during the 6 year period following the notification of such exemption <p> under subparagraph (E). A State agency receiving a notification under <p> subparagraph (E) may also conduct such an audit with respect to an exemption <p> covered by such <p> notification.</text> <p> </subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block> <p> </subparagraph></paragraph><paragraph id="id90CD6CCBAD0347D1B42F2F9D9C3567AA"><enum>(4)</enum><text>in subsection (e), by <p> striking paragraph (4) and inserting the following:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id844F07B726F44DC0BEE5AF242E592CF8" reported-display-style="italic" style="OLC"> <p> <paragraph id="idBF084DCDED8D4D2690BAF8AEB3B8B456"><enum>(4)</enum><header>Mental health <p> benefits</header><text>The term <quote>mental health benefits</quote> means <p> benefits with respect to services for mental health conditions, as defined <p> under the terms of the plan and in accordance with applicable Federal and State <p> law.</text> <p> </paragraph><paragraph id="id574E7244EC5E42AFB398469B77D311A8"><enum>(5)</enum><header>Substance use disorder <p> benefits</header><text display-inline="yes-display-inline">The term <p> <quote>substance use disorder benefits</quote> means benefits with respect to <p> services for substance use disorders, as defined under the terms of the plan <p> and in accordance with applicable Federal and State <p> law.</text> <p> </paragraph><after-quoted-block>;</after-quoted-block></quoted-block> <p> </paragraph><paragraph id="idD8E956B05A984BC9AC2E246F630137F3"><enum>(5)</enum><text>by striking subsection <p> (f);</text> <p> </paragraph><paragraph id="id88C1AAD33E484AF7B528F0D528B89392"><enum>(6)</enum><text display-inline="yes-display-inline">by striking <quote>mental health <p> benefits</quote> and inserting <quote>mental health and substance use disorder <p> benefits</quote> each place it appears in subsections (a)(1)(B)(i), (a)(1)(C), <p> (a)(2)(B)(i), and (a)(2)(C); and</text> <p> </paragraph><paragraph display-inline="no-display-inline" id="id1646B17189CD49E5ADE087F4F2C9B81D"><enum>(7)</enum><text display-inline="yes-display-inline">by striking <quote>mental health <p> benefits</quote> and inserting <quote>mental health or substance use disorder <p> benefits</quote> each place it appears (other than in any provision amended by <p> the previous paragraph).</text> <p> </paragraph></subsection><subsection id="id5C8501C3942D464EAC73B1B6F6568A8E"><enum>(d)</enum><header>Regulations</header><text>Not <p> later than 1 year after the date of enactment of this Act, the Secretaries of <p> Labor, Health and Human Services, and the Treasury shall issue regulations to <p> carry out the amendments made by subsections (a), (b), and (c), <p> respectively.</text> <p> </subsection><subsection commented="no" id="id04BAC066ECE74B2285B4C6E4EB3DA34A"><enum>(e)</enum><header>Effective date</header> <p> <paragraph commented="no" id="id3823D687706B471A84C757F6F5298D04"><enum>(1)</enum><header>In <p> general</header><text>The amendments made by this section shall apply with <p> respect to group health plans for plan years beginning after the date that is 1 <p> year after the date of enactment of this Act, regardless of whether regulations <p> have been issued to carry out such amendments by such effective date, except <p> that the amendments made by subsections (a)(5), (b)(5), and (c)(5), relating to <p> striking of certain sunset provisions, shall take effect on January 1, <p> 2009.</text> <p> </paragraph><paragraph id="idA83A6C09DFF14F048EDAEF0F572D38FC"><enum>(2)</enum><header>Special rule for <p> collective bargaining agreements</header><text display-inline="yes-display-inline">In the case of a group health plan <p> maintained pursuant to one or more collective bargaining agreements between <p> employee representatives and one or more employers ratified before the date of <p> the enactment of this Act, the amendments made by this section shall not apply <p> to plan years beginning before the later of—</text> <p> <subparagraph id="id9A5C501FAC7A46D7B902C2CDC3B85C5A"><enum>(A)</enum><text>the date on which the <p> last of the collective bargaining agreements relating to the plan terminates <p> (determined without regard to any extension thereof agreed to after the date of <p> the enactment of this Act), or</text> <p> </subparagraph><subparagraph id="idE80C3D4B06AE46AD9C70ACAB4EBE90F8"><enum>(B)</enum><text>January 1, 2009.</text> <p> </subparagraph><continuation-text commented="no" continuation-text-level="paragraph">For <p> purposes of subparagraph (A), any plan amendment made pursuant to a collective <p> bargaining agreement relating to the plan which amends the plan solely to <p> conform to any requirement added by this section shall not be treated as a <p> termination of such collective bargaining agreement.</continuation-text></paragraph></subsection><subsection id="idC62CFDC7062D416E9B863537910AAB17"><enum>(f)</enum><header>Assuring <p> coordination</header><text display-inline="yes-display-inline">The Secretary of <p> Health and Human Services, the Secretary of Labor, and the Secretary of the <p> Treasury may ensure, through the execution or revision of an interagency <p> memorandum of understanding among such Secretaries, that—</text> <p> <paragraph id="idCED601019EBD4DEA8F20047E2EB556D8"><enum>(1)</enum><text>regulations, rulings, and <p> interpretations issued by such Secretaries relating to the same matter over <p> which two or more such Secretaries have responsibility under this section (and <p> the amendments made by this section) are administered so as to have the same <p> effect at all times; and</text> <p> </paragraph><paragraph id="id932CD015FAF44802818C3D04401611FE"><enum>(2)</enum><text>coordination of policies <p> relating to enforcing the same requirements through such Secretaries in order <p> to have a coordinated enforcement strategy that avoids duplication of <p> enforcement efforts and assigns priorities in enforcement.</text> <p> </paragraph></subsection><subsection id="id02B964F4AC1A41AE965D92269392CBCB"><enum>(g)</enum><header>Conforming clerical <p> amendments</header> <p> <paragraph id="id4E3F5970F209494EB1582428CC099DC9"><enum>(1)</enum><header>ERISA heading</header> <p> <subparagraph id="id5FFD98DA3C3C41B4BE398C23012C42A5"><enum>(A)</enum><header>In <p> general</header><text>The heading of section 712 of the Employee Retirement <p> Income Security Act of 1974 is amended to read as follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id914E07534E5A4116A033A838C7B267B8" reported-display-style="italic" style="OLC"> <p> <section id="id40EA554932D14A21B1E7C0597DCDC27B"><enum>712.</enum><header>Parity in mental <p> health and substance use disorder <p> benefits</header> <p> </section><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subparagraph><subparagraph id="id994CF889CB3748409B3D7C6EBC124713"><enum>(B)</enum><header>Clerical <p> amendment</header><text>The table of contents in section 1 of such Act is <p> amended by striking the item relating to section 712 and inserting the <p> following new item:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idBB1C949CA3E74C5BBC72D748E2C9F4E1" reported-display-style="italic" style="OLC"> <p> <toc changed="added" regeneration="no-regeneration" reported-display-style="italic"> <p> <toc-entry level="section">Sec. 712. Parity in mental health and substance <p> use disorder <p> benefits.</toc-entry> <p> </toc> <p> <after-quoted-block>.</after-quoted-block></quoted-block> <p> </subparagraph></paragraph><paragraph id="idA76C89CE4BE14FEC95E941443EF35D30"><enum>(2)</enum><header>PHSA <p> heading</header><text>The heading of section 2705 of the Public Health Service <p> Act is amended to read as follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idF4DA73EE19B9442CB2116305E8E5444D" reported-display-style="italic" style="OLC"> <p> <section id="id793E997F256E4C56A4E11CB3072511A1"><enum>2705.</enum><header>Parity in mental <p> health and substance use disorder <p> benefits</header> <p> </section><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph display-inline="no-display-inline" id="id33FBEA09DEFF469F929D2D869659D7EF"><enum>(3)</enum><header>IRC heading</header> <p> <subparagraph id="idA282D96A0D67440DB7A78D091AF77A67"><enum>(A)</enum><header>In <p> general</header><text>The heading of section 9812 of the Internal Revenue Code <p> of 1986 is amended to read as follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id9CA5115472AC47B8B67DAD363FBBE3A9" reported-display-style="italic" style="OLC"> <p> <section id="idF565C022B5F2430CA3526E2450E516A3"><enum>9812.</enum><header>Parity in mental <p> health and substance use disorder <p> benefits</header> <p> </section><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subparagraph><subparagraph display-inline="no-display-inline" id="id29592BED2D3A41DE9D569CD906498581"><enum>(B)</enum><header>Clerical <p> amendment</header><text>The table of sections for subchapter B of chapter 100 <p> of such Code is amended by striking the item relating to section 9812 and <p> inserting the following new item:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id7B920C9CCB854BF2A0B440D1016940B0" reported-display-style="italic" style="OLC"> <p> <toc changed="added" regeneration="no-regeneration" reported-display-style="italic"> <p> <toc-entry level="section">Sec. 9812. Parity in mental health and <p> substance use disorder <p> benefits.</toc-entry> <p> </toc> <p> <after-quoted-block>.</after-quoted-block></quoted-block> <p> </subparagraph></paragraph></subsection><subsection id="idFCD128CC62694F6D8E6C56E0CC004240"><enum>(h)</enum><header>GAO study on coverage <p> and exclusion of mental health and substance use disorder diagnoses</header> <p> <paragraph id="idD89ED81D69164D4DB203CBE00ED11914"><enum>(1)</enum><header>In <p> general</header><text>The Comptroller General of the United States shall <p> conduct a study that analyzes the specific rates, patterns, and trends in <p> coverage and exclusion of specific mental health and substance use disorder <p> diagnoses by health plans and health insurance. The study shall include an <p> analysis of—</text> <p> <subparagraph id="id3595DD35EB804AC1B3D20B3B259E70F4"><enum>(A)</enum><text>specific coverage rates <p> for all mental health conditions and substance use disorders;</text> <p> </subparagraph><subparagraph id="idB2C9869E03404626BC38AF4EAEFCAB1E"><enum>(B)</enum><text>which diagnoses are most <p> commonly covered or excluded;</text> <p> </subparagraph><subparagraph id="id4C4632CE12544F4497E616EF49A84F9D"><enum>(C)</enum><text>whether implementation of <p> this Act has affected trends in coverage or exclusion of such diagnoses; <p> and</text> <p> </subparagraph><subparagraph id="id5873D2C064CF4D1FAC5CFE9FF54C07C2"><enum>(D)</enum><text>the impact of covering or <p> excluding specific diagnoses on participants’ and enrollees’ health, their <p> health care coverage, and the costs of delivering health care.</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id43E466FB9D8548CB8A0636A18AF847F2"><enum>(2)</enum><header>Reports</header><text>Not <p> later than 3 years after the date of the enactment of this Act, and 2 years <p> after the date of submission the first report under this paragraph, the <p> Comptroller General shall submit to Congress a report on the results of the <p> study conducted under paragraph (1).</text> <p> </paragraph></subsection></section></subtitle><enum>VI</enum><header>Other <p> provisions</header> <p> <section id="idB3AE0A94555C499FBAD9ED182316208A"><enum>601.</enum><header>Secure rural schools <p> and community self-determination program</header> <p> <subsection id="id190F3040E89E4A109A54656C6416726D"><enum>(a)</enum><header>Reauthorization of the <p> secure rural schools and community self-determination act of 2000</header><text display-inline="yes-display-inline">The Secure Rural Schools and Community <p> Self-Determination Act of 2000 (<external-xref legal-doc="usc" parsable-cite="usc/16/500">16 U.S.C. 500</external-xref> note; <external-xref legal-doc="public-law" parsable-cite="pl/106/393">Public Law 106–393</external-xref>) is <p> amended by striking sections 1 through 403 and inserting the following:</text> <p> <quoted-block changed="added" id="ID4EC64E4BFA6E42EF8460F3021A333364" reported-display-style="italic" style="OLC"> <p> <section id="ID12546E3D9F3F43F99C1B79FB4B36E987" section-type="section-one"><enum>1.</enum><header>Short title</header><text display-inline="no-display-inline">This Act may be cited as the <quote>Secure <p> Rural Schools and Community Self-Determination Act of 2000</quote>.</text> <p> </section><section id="ID8A6279B8CCF343F097B62D0CE88A1348"><enum>2.</enum><header>Purposes</header><text display-inline="no-display-inline">The purposes of this Act are—</text> <p> <paragraph id="ID83C19A77856246FF900A3DEAEEF2B21B"><enum>(1)</enum><text>to stabilize and <p> transition payments to counties to provide funding for schools and roads that <p> supplements other available funds;</text> <p> </paragraph><paragraph id="ID164EEE76E94A41749C8A530EED123747"><enum>(2)</enum><text>to make additional <p> investments in, and create additional employment opportunities through, <p> projects that—</text> <p> <subparagraph id="IDEF09D5432BD64D7381D02646CB8282DF"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="ID5A8F9C2117A842B8866F6731D2E15E3F"><enum>(i)</enum><text>improve the maintenance <p> of existing infrastructure;</text> <p> </clause><clause changed="added" id="IDE8C2F68449014EAF8A6B62271F5F4F36" indent="up1" reported-display-style="italic"><enum>(ii)</enum><text>implement stewardship <p> objectives that enhance forest ecosystems; and</text> <p> </clause><clause changed="added" id="ID0AD8621323B84A0D8026CAAE31902494" indent="up1" reported-display-style="italic"><enum>(iii)</enum><text>restore and improve <p> land health and water quality;</text> <p> </clause></subparagraph><subparagraph id="ID40255D346C984546A65621AABF548339"><enum>(B)</enum><text>enjoy broad-based <p> support; and</text> <p> </subparagraph><subparagraph id="ID8E6FCBD0661E4BEDAA32AA83D022F62F"><enum>(C)</enum><text>have objectives that may <p> include—</text> <p> <clause id="ID4B0C9325C3594892869338C79C670374"><enum>(i)</enum><text>road, trail, and <p> infrastructure maintenance or obliteration;</text> <p> </clause><clause id="ID8D5909D47C16497D857BB64C42C0A063"><enum>(ii)</enum><text>soil productivity <p> improvement;</text> <p> </clause><clause id="ID731F4ACEA713482AB920DA48D21737A7"><enum>(iii)</enum><text>improvements in forest <p> ecosystem health;</text> <p> </clause><clause id="ID735826D3CC82499EBCC3E812A0718100"><enum>(iv)</enum><text>watershed restoration <p> and maintenance;</text> <p> </clause><clause id="ID2A67C26D0FCD498187AE854B366AE996"><enum>(v)</enum><text>the restoration, <p> maintenance, and improvement of wildlife and fish habitat;</text> <p> </clause><clause id="ID51182CD24DD249A2961EC0499695DCFA"><enum>(vi)</enum><text>the control of noxious <p> and exotic weeds; and</text> <p> </clause><clause id="ID3A2DCF6D80CD4E0EB7845D83C1E47FEC"><enum>(vii)</enum><text>the reestablishment of <p> native species; and</text> <p> </clause></subparagraph></paragraph><paragraph id="IDE412F9E4FE154A778549BBA860E01316"><enum>(3)</enum><text>to improve cooperative <p> relationships among—</text> <p> <subparagraph id="ID51AF918B6FF14D32921887B69C5436EE"><enum>(A)</enum><text>the people that use and <p> care for Federal land; and</text> <p> </subparagraph><subparagraph id="ID2A04314B8E314B4AA7F4ACC4F25953B1"><enum>(B)</enum><text>the agencies that manage <p> the Federal land.</text> <p> </subparagraph></paragraph></section><section id="ID3C0F34FB22FD44A2B536091ED4D2A77C"><enum>3.</enum><header>Definitions</header><text display-inline="no-display-inline">In this Act:</text> <p> <paragraph id="ID42DEE2586E444616B6C74D36E04F4553"><enum>(1)</enum><header>Adjusted <p> share</header><text>The term <term>adjusted share</term> means the number equal <p> to the quotient obtained by dividing—</text> <p> <subparagraph id="IDA51C69C8F996418CBF398BA688EBEC74"><enum>(A)</enum><text>the number equal to the <p> quotient obtained by dividing—</text> <p> <clause id="ID943D2205A703476FAA78C07674258BE9"><enum>(i)</enum><text>the base share for the <p> eligible county; by</text> <p> </clause><clause id="IDAF195FAF546B4B4B828DC0B157596819"><enum>(ii)</enum><text>the income adjustment <p> for the eligible county; by</text> <p> </clause></subparagraph><subparagraph id="ID6D5609C12A02471E908794D5B8FB8365"><enum>(B)</enum><text>the number equal to the <p> sum of the quotients obtained under subparagraph (A) and paragraph (8)(A) for <p> all eligible counties.</text> <p> </subparagraph></paragraph><paragraph id="IDCBDC86572F9549A49369C29ECA2E2224"><enum>(2)</enum><header>Base <p> share</header><text>The term <term>base share</term> means the number equal to <p> the average of—</text> <p> <subparagraph id="IDBD02DB415C004D7CAA2DA61C4398D740"><enum>(A)</enum><text>the quotient obtained by <p> dividing—</text> <p> <clause id="ID1DA53AF35292462FA42684895753A575"><enum>(i)</enum><text>the number of acres of <p> Federal land described in paragraph (7)(A) in each eligible county; by</text> <p> </clause><clause id="IDAA5F013B40F640C3B51DA5D81C3A7868"><enum>(ii)</enum><text>the total number acres <p> of Federal land in all eligible counties in all eligible States; and</text> <p> </clause></subparagraph><subparagraph id="ID7E2FCA8039E04F2891CA0EE05362D784"><enum>(B)</enum><text>the quotient obtained by <p> dividing—</text> <p> <clause id="IDDDC8BFFACD504565B2A97F62163EF1A6"><enum>(i)</enum><text>the amount equal to the <p> average of the 3 highest 25-percent payments and safety net payments made to <p> each eligible State for each eligible county during the eligibility period; <p> by</text> <p> </clause><clause id="ID017035F6ED2B49D4A87B2C7EE1FB02B5"><enum>(ii)</enum><text>the amount equal to the <p> sum of the amounts calculated under clause (i) and paragraph (9)(B)(i) for all <p> eligible counties in all eligible States during the eligibility period.</text> <p> </clause></subparagraph></paragraph><paragraph id="ID6834E6DC3DCC4384AB73A1F82F0E9FD6"><enum>(3)</enum><header>County <p> payment</header><text>The term <term>county payment</term> means the payment <p> for an eligible county calculated under section 101(b).</text> <p> </paragraph><paragraph id="IDDF1D98C6F9884E16836C6BBAC6AB88C2"><enum>(4)</enum><header>Eligible <p> county</header><text>The term <term>eligible county</term> means any county <p> that—</text> <p> <subparagraph id="IDFB7F5DB5DD1247B88C2284D7C37DB457"><enum>(A)</enum><text>contains Federal land (as <p> defined in paragraph (7)); and</text> <p> </subparagraph><subparagraph id="ID7D88C2E4425E4A4398C2BE70C26C4020"><enum>(B)</enum><text>elects to receive a share <p> of the State payment or the county payment under section 102(b).</text> <p> </subparagraph></paragraph><paragraph id="ID2BA742EDFB664A73B34DE82A1317FA53"><enum>(5)</enum><header>Eligibility <p> period</header><text>The term <term>eligibility period</term> means fiscal year <p> 1986 through fiscal year 1999.</text> <p> </paragraph><paragraph id="IDCB8744F1B1D14119967838E6E47F4DCB"><enum>(6)</enum><header>Eligible <p> state</header><text>The term <term>eligible State</term> means a State or <p> territory of the United States that received a 25-percent payment for 1 or more <p> fiscal years of the eligibility period.</text> <p> </paragraph><paragraph id="ID3AD551BDFC76421C9118D643A4C34B10"><enum>(7)</enum><header>Federal <p> land</header><text>The term <term>Federal land</term> means—</text> <p> <subparagraph id="IDDDBD6E89E806412FBABE821BAB54C5F2"><enum>(A)</enum><text>land within the National <p> Forest System, as defined in section 11(a) of the <p> <act-name parsable-cite="FRRRP">Forest and Rangeland Renewable Resources <p> Planning Act of 1974</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/16/1609">16 U.S.C. 1609(a)</external-xref>) exclusive of the National <p> Grasslands and land utilization projects designated as National Grasslands <p> administered pursuant to the Act of July 22, 1937 (<external-xref legal-doc="usc" parsable-cite="usc/7/1010">7 U.S.C. 1010–1012</external-xref>); <p> and</text> <p> </subparagraph><subparagraph id="IDD3FF5C91DD254F09802535B5179A7AC3"><enum>(B)</enum><text>such portions of the <p> revested Oregon and California Railroad and reconveyed Coos Bay Wagon Road <p> grant land as are or may hereafter come under the jurisdiction of the <p> Department of the Interior, which have heretofore or may hereafter be <p> classified as timberlands, and power-site land valuable for timber, that shall <p> be managed, except as provided in the former section 3 of the Act of August 28, <p> 1937 (50 Stat. 875; <external-xref legal-doc="usc" parsable-cite="usc/43/1181c">43 U.S.C. 1181c</external-xref>), for permanent forest production.</text> <p> </subparagraph></paragraph><paragraph id="ID4CAE00FCF2C9462D8ED1E0E38529CB0F"><enum>(8)</enum><header>50-Percent adjusted <p> share</header><text>The term <term>50-percent adjusted share</term> means the <p> number equal to the quotient obtained by dividing—</text> <p> <subparagraph id="ID93C5C0D5D78D41E7B0DCD2880443F524"><enum>(A)</enum><text>the number equal to the <p> quotient obtained by dividing—</text> <p> <clause id="ID87A44622EC954396A8FE12FAFD4449C1"><enum>(i)</enum><text>the 50-percent base share <p> for the eligible county; by</text> <p> </clause><clause id="IDC0BF9BDC69C1435B8535A0ECB3CBDC54"><enum>(ii)</enum><text>the income adjustment <p> for the eligible county; by</text> <p> </clause></subparagraph><subparagraph id="ID7E50F88D576C46A7AF4E05FD46573A03"><enum>(B)</enum><text>the number equal to the <p> sum of the quotients obtained under subparagraph (A) and paragraph (1)(A) for <p> all eligible counties.</text> <p> </subparagraph></paragraph><paragraph id="IDCDFB077E4AF44559B3BC8F14D3F67A4B"><enum>(9)</enum><header>50-Percent base <p> share</header><text>The term <term>50-percent base share</term> means the <p> number equal to the average of—</text> <p> <subparagraph id="ID2FCCA19697DB4C5688EEB854E08EDAA3"><enum>(A)</enum><text>the quotient obtained by <p> dividing—</text> <p> <clause id="ID91960DEC3CFE4B7C94DA4E96F8EC15F0"><enum>(i)</enum><text>the number of acres of <p> Federal land described in paragraph (7)(B) in each eligible county; by</text> <p> </clause><clause id="ID3872BB15E50B473D87538E8F585D8D43"><enum>(ii)</enum><text>the total number acres <p> of Federal land in all eligible counties in all eligible States; and</text> <p> </clause></subparagraph><subparagraph id="IDD4C9999A4ACB4AD1AEB64A32B53149E3"><enum>(B)</enum><text>the quotient obtained by <p> dividing—</text> <p> <clause id="ID61A4EACEC9E7450DBD32B3C82AA44217"><enum>(i)</enum><text>the amount equal to the <p> average of the 3 highest 50-percent payments made to each eligible county <p> during the eligibility period; by</text> <p> </clause><clause id="IDBC224C7138EE438B89EE17F1CE264123"><enum>(ii)</enum><text>the amount equal to the <p> sum of the amounts calculated under clause (i) and paragraph (2)(B)(i) for all <p> eligible counties in all eligible States during the eligibility period.</text> <p> </clause></subparagraph></paragraph><paragraph id="ID9B0CC4EE93464100A88B22BA96888AD7"><enum>(10)</enum><header>50-percent <p> payment</header><text>The term <term>50-percent payment</term> means the <p> payment that is the sum of the 50-percent share otherwise paid to a county <p> pursuant to title II of the Act of August 28, 1937 (chapter 876; 50 Stat. 875; <p> <external-xref legal-doc="usc" parsable-cite="usc/43/1181f">43 U.S.C. 1181f</external-xref>), and the payment made to a county pursuant to the Act of May <p> 24, 1939 (chapter 144; 53 Stat. 753; <external-xref legal-doc="usc" parsable-cite="usc/43/1181f-1">43 U.S.C. 1181f–1 et seq.</external-xref>).</text> <p> </paragraph><paragraph id="ID3AEC5732F08A4FFB8D9DF7BF925DB6DA"><enum>(11)</enum><header>Full funding <p> amount</header><text>The term <term>full funding amount</term> means—</text> <p> <subparagraph id="IDE778C76A0209430D83866AABD22D1A17"><enum>(A)</enum><text>$500,000,000 for fiscal <p> year 2008; and</text> <p> </subparagraph><subparagraph id="ID822D655F0F5043E4BD02DBA028DDE943"><enum>(B)</enum><text>for fiscal year 2009 and <p> each fiscal year thereafter, the amount that is equal to 90 percent of the full <p> funding amount for the preceding fiscal year.</text> <p> </subparagraph></paragraph><paragraph id="ID0A6D810E43C6468FAE027691FB85906B"><enum>(12)</enum><header>Income <p> adjustment</header><text>The term <term>income adjustment</term> means the <p> square of the quotient obtained by dividing—</text> <p> <subparagraph id="IDF785C3D3A4F14E25BB7A714BB966436F"><enum>(A)</enum><text>the per capita personal <p> income for each eligible county; by</text> <p> </subparagraph><subparagraph id="ID53069CF636A54F04BC0B80483AED3B01"><enum>(B)</enum><text>the median per capita <p> personal income of all eligible counties.</text> <p> </subparagraph></paragraph><paragraph id="ID01360E0B5EA84FFF9ADF3197AF1E73EA"><enum>(13)</enum><header>Per capita personal <p> income</header><text>The term <term>per capita personal income</term> means the <p> most recent per capita personal income data, as determined by the Bureau of <p> Economic Analysis.</text> <p> </paragraph><paragraph id="ID8973C7191D984A16A19148368C3FC6C6"><enum>(14)</enum><header>Safety net <p> payments</header><text>The term <term>safety net payments</term> means the <p> special payment amounts paid to States and counties required by section 13982 <p> or 13983 of the <act-name parsable-cite="OBRA93">Omnibus Budget Reconciliation <p> Act of 1993</act-name> (<external-xref legal-doc="public-law" parsable-cite="pl/103/66">Public Law 103–66</external-xref>; <external-xref legal-doc="usc" parsable-cite="usc/16/500">16 U.S.C. 500</external-xref> note; 43 U.S.C. 1181f <p> note).</text> <p> </paragraph><paragraph id="ID448AE5ACF9614318B880C123FAB3C627"><enum>(15)</enum><header>Secretary <p> concerned</header><text>The term <term>Secretary concerned</term> means—</text> <p> <subparagraph id="IDB78D760A91224C158FC33296CC85C42A"><enum>(A)</enum><text>the Secretary of <p> Agriculture or the designee of the Secretary of Agriculture with respect to the <p> Federal land described in paragraph (7)(A); and</text> <p> </subparagraph><subparagraph id="IDBC664492E9684970804B729AD2EE25BC"><enum>(B)</enum><text>the Secretary of the <p> Interior or the designee of the Secretary of the Interior with respect to the <p> Federal land described in paragraph (7)(B).</text> <p> </subparagraph></paragraph><paragraph id="ID19A0F2D4AAEE4213A7EF12E3E03D20B4"><enum>(16)</enum><header>State <p> payment</header><text>The term <term>State payment</term> means the payment for <p> an eligible State calculated under section 101(a).</text> <p> </paragraph><paragraph id="ID7F2FCF17583B4668B68A1E1043DCEF5D"><enum>(17)</enum><header>25-Percent <p> payment</header><text>The term <term>25-percent payment</term> means the <p> payment to States required by the sixth paragraph under the heading of <p> <quote><header-in-text level="appropriations-major" style="traditional">FOREST <p> SERVICE</header-in-text></quote> in the Act of May 23, 1908 (35 Stat. 260; 16 <p> U.S.C. 500), and section 13 of the Act of March 1, 1911 (36 Stat. 963; 16 <p> U.S.C. 500).</text> <p> </paragraph></section><title id="IDCA3E0BC9109044F39608B46B64F070AC"><enum>I</enum><header>SECURE PAYMENTS FOR <p> STATES AND COUNTIES CONTAINING FEDERAL LAND</header> <p> <section id="IDCEAF0F801F064D85AF5078CDE46667DA"><enum>101.</enum><header>Secure payments for <p> States containing Federal land</header> <p> <subsection id="ID26B549831F7B4A8FB46F0381683CBC75"><enum>(a)</enum><header>State <p> Payment</header><text>For each of fiscal years 2008 through 2011, the Secretary <p> of Agriculture shall calculate for each eligible State an amount equal to the <p> sum of the products obtained by multiplying—</text> <p> <paragraph id="ID80586C8A766F430D98E308F701528118"><enum>(1)</enum><text>the adjusted share for <p> each eligible county within the eligible State; by</text> <p> </paragraph><paragraph id="IDF0EEA726DFC7432984CC4BA76190825B"><enum>(2)</enum><text>the full funding amount <p> for the fiscal year.</text> <p> </paragraph></subsection><subsection id="ID383AA857A6D94C988D5FAEC0D9002CBD"><enum>(b)</enum><header>County <p> Payment</header><text>For each of fiscal years 2008 through 2011, the Secretary <p> of the Interior shall calculate for each eligible county that received a <p> 50-percent payment during the eligibility period an amount equal to the product <p> obtained by multiplying—</text> <p> <paragraph id="ID002E9CD3945D4936BCE4D8E4DD622203"><enum>(1)</enum><text>the 50-percent adjusted <p> share for the eligible county; by</text> <p> </paragraph><paragraph id="ID1E83735675F34841A1FD324B76D62FCF"><enum>(2)</enum><text>the full funding amount <p> for the fiscal year.</text> <p> </paragraph></subsection></section><section id="ID5CA26C02C2A74884A764D737AA99229C"><enum>102.</enum><header>Payments to States and <p> counties</header> <p> <subsection id="ID7E95C9D3BF90426ABBCDDB75ABC15F09"><enum>(a)</enum><header>Payment <p> Amounts</header><text>Except as provided in section 103, the Secretary of the <p> Treasury shall pay to—</text> <p> <paragraph id="ID6B6DC14A9F0442C3B42D5434D985A0F9"><enum>(1)</enum><text>a State or territory of <p> the United States an amount equal to the sum of the amounts elected under <p> subsection (b) by each county within the State or territory for—</text> <p> <subparagraph id="ID5D41B13C278D403AAAB08AECD5E7B920"><enum>(A)</enum><text>if the county is eligible <p> for the 25-percent payment, the share of the 25-percent payment; or</text> <p> </subparagraph><subparagraph id="IDFCC0CAD1DE094C47AB28EB607295781E"><enum>(B)</enum><text>the share of the State <p> payment of the eligible county; and</text> <p> </subparagraph></paragraph><paragraph id="ID8401D2F13CB5432DB13ECAE3EE9224DD"><enum>(2)</enum><text>a county an amount equal <p> to the amount elected under subsection (b) by each county for—</text> <p> <subparagraph id="ID8448B64825DF47608822446F44C4EDB1"><enum>(A)</enum><text>if the county is eligible <p> for the 50-percent payment, the 50-percent payment; or</text> <p> </subparagraph><subparagraph id="ID5053ABA9599042689689EC47C6B84A28"><enum>(B)</enum><text>the county payment for <p> the eligible county.</text> <p> </subparagraph></paragraph></subsection><subsection id="ID22A949C34E0F40E89BDBB3582CDFAFD0"><enum>(b)</enum><header>Election To Receive <p> Payment Amount</header> <p> <paragraph id="ID3CDAF8DF305B4706B2851D0B851DA75B"><enum>(1)</enum><header>Election; submission of <p> results</header> <p> <subparagraph id="IDBAEB625A3E1949959DB3F8129D1CDFF6"><enum>(A)</enum><header>In <p> general</header><text>The election to receive a share of the State payment, the <p> county payment, a share of the State payment and the county payment, a share of <p> the 25-percent payment, the 50-percent payment, or a share of the 25-percent <p> payment and the 50-percent payment, as applicable, shall be made at the <p> discretion of each affected county by August 1, 2008 (or as soon thereafter as <p> the Secretary concerned determines is practicable), and August 1 of each second <p> fiscal year thereafter, in accordance with paragraph (2), and transmitted to <p> the Secretary concerned by the Governor of each eligible State.</text> <p> </subparagraph><subparagraph id="ID9AB5C0725D8B44359827AB43096CB245"><enum>(B)</enum><header>Failure to <p> transmit</header><text>If an election for an affected county is not transmitted <p> to the Secretary concerned by the date specified under subparagraph (A), the <p> affected county shall be considered to have elected to receive a share of the <p> State payment, the county payment, or a share of the State payment and the <p> county payment, as applicable.</text> <p> </subparagraph></paragraph><paragraph id="ID351043688954468080C678D5119F9804"><enum>(2)</enum><header>Duration of <p> election</header> <p> <subparagraph id="ID40A4090BC2F14127A514E5721A1B0D03"><enum>(A)</enum><header>In <p> general</header><text>A county election to receive a share of the 25-percent <p> payment or 50-percent payment, as applicable, shall be effective for 2 fiscal <p> years.</text> <p> </subparagraph><subparagraph id="ID490FCF46A13D4B4D8A92C77FD7456247"><enum>(B)</enum><header>Full funding <p> amount</header><text>If a county elects to receive a share of the State payment <p> or the county payment, the election shall be effective for all subsequent <p> fiscal years through fiscal year 2011.</text> <p> </subparagraph></paragraph><paragraph id="ID1926C06F92C646138BFAE6BD0DF467CD"><enum>(3)</enum><header>Source of payment <p> amounts</header><text>The payment to an eligible State or eligible county under <p> this section for a fiscal year shall be derived from—</text> <p> <subparagraph id="id39284D953A4B4721A4F3328B2052BE07"><enum>(A)</enum><text>any amounts that are <p> appropriated to carry out this Act;</text> <p> </subparagraph><subparagraph id="ID03485AB769194F22BCE606AAFBCE5A53"><enum>(B)</enum><text>any revenues, fees, <p> penalties, or miscellaneous receipts, exclusive of deposits to any relevant <p> trust fund, special account, or permanent operating funds, received by the <p> Federal Government from activities by the Bureau of Land Management or the <p> Forest Service on the applicable Federal land; and</text> <p> </subparagraph><subparagraph id="IDCA97EEED070D4D2A96A2CEB293629654"><enum>(C)</enum><text>to the extent of any <p> shortfall, out of any amounts in the Treasury of the United States not <p> otherwise appropriated.</text> <p> </subparagraph></paragraph></subsection><subsection id="IDC041A75958FE41CCB5330288641E4D9A"><enum>(c)</enum><header>Distribution and <p> Expenditure of Payments</header> <p> <paragraph id="ID1231BF2C51C849D2812CA60AC5BECBA0"><enum>(1)</enum><header>Distribution <p> method</header><text>A State that receives a payment under subsection (a) for <p> Federal land described in section 3(7)(A) shall distribute the appropriate <p> payment amount among the appropriate counties in the State in accordance <p> with—</text> <p> <subparagraph id="ID551F9FA2ED2B4A5E84CB6DB9C2BE78AC"><enum>(A)</enum><text>the Act of May 23, 1908 <p> (<external-xref legal-doc="usc" parsable-cite="usc/16/500">16 U.S.C. 500</external-xref>); and</text> <p> </subparagraph><subparagraph id="ID7EAB7D35C94341FA82DF76D12111D5F0"><enum>(B)</enum><text>section 13 of the Act of <p> March 1, 1911 (36 Stat. 963; <external-xref legal-doc="usc" parsable-cite="usc/16/500">16 U.S.C. 500</external-xref>).</text> <p> </subparagraph></paragraph><paragraph id="ID59C36782346240E18F80E8550D0F4712"><enum>(2)</enum><header>Expenditure <p> purposes</header><text>Subject to subsection (d), payments received by a State <p> under subsection (a) and distributed to counties in accordance with paragraph <p> (1) shall be expended as required by the laws referred to in paragraph <p> (1).</text> <p> </paragraph></subsection><subsection id="ID776D60CE15184C3EAFC672F1C0044EA4"><enum>(d)</enum><header>Expenditure Rules for <p> Eligible Counties</header> <p> <paragraph id="ID7C139F1AF4974744B12757B5B196BAEC"><enum>(1)</enum><header>Allocations</header> <p> <subparagraph id="IDAB156586DFF94E4BA92AE9909DD29B19"><enum>(A)</enum><header>Use of portion in same <p> manner as 25-percent payment or 50-percent payment, as <p> applicable</header><text>Except as provided in paragraph (3)(B), if an eligible <p> county elects to receive its share of the State payment or the county payment, <p> not less than 80 percent, but not more than 85 percent, of the funds shall be <p> expended in the same manner in which the 25-percent payments or 50-percent <p> payment, as applicable, are required to be expended.</text> <p> </subparagraph><subparagraph id="IDD7FE3F7C7C654E7FB46BBFA3E29C8563"><enum>(B)</enum><header>Election as to use of <p> balance</header><text>Except as provided in subparagraph (C), an eligible <p> county shall elect to do 1 or more of the following with the balance of any <p> funds not expended pursuant to subparagraph (A):</text> <p> <clause id="IDBB968528854C446DAB8825E57F104B4B"><enum>(i)</enum><text>Reserve any portion of <p> the balance for projects in accordance with title II.</text> <p> </clause><clause id="IDBF16090CA01343208D6898E38FE1F797"><enum>(ii)</enum><text>Reserve not more than 7 <p> percent of the total share for the eligible county of the State payment or the <p> county payment for projects in accordance with title III.</text> <p> </clause><clause id="ID20A3A101EFA54F56A9E3B49CE50BE21A"><enum>(iii)</enum><text>Return the portion of <p> the balance not reserved under clauses (i) and (ii) to the Treasury of the <p> United States.</text> <p> </clause></subparagraph><subparagraph id="ID5C4763F41A85446680AB70BCEE36EFE1"><enum>(C)</enum><header>Counties with modest <p> distributions</header><text>In the case of each eligible county to which more <p> than $100,000, but less than $350,000, is distributed for any fiscal year <p> pursuant to either or both of paragraphs (1)(B) and (2)(B) of subsection (a), <p> the eligible county, with respect to the balance of any funds not expended <p> pursuant to subparagraph (A) for that fiscal year, shall—</text> <p> <clause id="ID5568F06A0BBB462997E4143097C4CAA3"><enum>(i)</enum><text>reserve any portion of <p> the balance for—</text> <p> <subclause id="ID40129E4286CF44F780C90026F97927B7"><enum>(I)</enum><text>carrying out projects <p> under title II;</text> <p> </subclause><subclause id="IDE7A6F17748254AD9BF5D403D26D56E6A"><enum>(II)</enum><text>carrying out projects <p> under title III; or</text> <p> </subclause><subclause id="ID52CC572B64C648339C53A1ED1E5A2B95"><enum>(III)</enum><text>a combination of the <p> purposes described in subclauses (I) and (II); or</text> <p> </subclause></clause><clause id="IDA9704B5DFA514002957D8FF87B9D4F4E"><enum>(ii)</enum><text>return the portion of <p> the balance not reserved under clause (i) to the Treasury of the United <p> States.</text> <p> </clause></subparagraph></paragraph><paragraph id="ID2F3F80DF9FBB49C7AED2D29383C9DB4A"><enum>(2)</enum><header>Distribution of <p> funds</header> <p> <subparagraph id="IDB9E06D17102A41839F8AF32C5F460298"><enum>(A)</enum><header>In <p> general</header><text>Funds reserved by an eligible county under subparagraph <p> (B)(i) or (C)(i) of paragraph (1) for carrying out projects under title II <p> shall be deposited in a special account in the Treasury of the United <p> States.</text> <p> </subparagraph><subparagraph id="IDA1102329C1B746A4BD5BDF10F81161D8"><enum>(B)</enum><header>Availability</header><text>Amounts <p> deposited under subparagraph (A) shall—</text> <p> <clause id="ID9EE3FE773A7847E68795599C82A1FDC6"><enum>(i)</enum><text>be available for <p> expenditure by the Secretary concerned, without further appropriation; <p> and</text> <p> </clause><clause id="ID9F486AD190F34B8A8CFD54CEE1C4F79A"><enum>(ii)</enum><text>remain available until <p> expended in accordance with title II.</text> <p> </clause></subparagraph></paragraph><paragraph id="ID9D4CEBB3C03F4DFF851FC5B79C33951A"><enum>(3)</enum><header>Election</header> <p> <subparagraph id="ID634F78636E2141AEA0439EFB9A0DB5C1"><enum>(A)</enum><header>Notification</header> <p> <clause id="IDF217C13B888D4234AEA49F1187A59813"><enum>(i)</enum><header>In <p> general</header><text>An eligible county shall notify the Secretary concerned <p> of an election by the eligible county under this subsection not later than <p> September 30, 2008 (or as soon thereafter as the Secretary concerned determines <p> is practicable), and each September 30 thereafter for each succeeding fiscal <p> year.</text> <p> </clause><clause id="IDCFC427B3F3374D24ABA1CF1D66917031"><enum>(ii)</enum><header>Failure to <p> elect</header><text>Except as provided in subparagraph (B), if the eligible <p> county fails to make an election by the date specified in clause (i), the <p> eligible county shall—</text> <p> <subclause id="ID8633E01251AB46D3B0DFA46F9195CAC2"><enum>(I)</enum><text>be considered to have <p> elected to expend 85 percent of the funds in accordance with paragraph (1)(A); <p> and</text> <p> </subclause><subclause id="ID79C01CCB9748412AA5FBBD5F149F42AD"><enum>(II)</enum><text>return the balance to <p> the Treasury of the United States.</text> <p> </subclause></clause></subparagraph><subparagraph id="IDB7E1FFAF00554455B68F001EB18E01D0"><enum>(B)</enum><header>Counties with minor <p> distributions</header><text>In the case of each eligible county to which less <p> than $100,000 is distributed for any fiscal year pursuant to either or both of <p> paragraphs (1)(B) and (2)(B) of subsection (a), the eligible county may elect <p> to expend all the funds in the same manner in which the 25-percent payments or <p> 50-percent payments, as applicable, are required to be expended.</text> <p> </subparagraph></paragraph></subsection><subsection id="ID67D49CADFFBA403CBB9A9B9C97CBCFCE"><enum>(e)</enum><header>Time for <p> Payment</header><text>The payments required under this section for a fiscal <p> year shall be made as soon as practicable after the end of that fiscal <p> year.</text> <p> </subsection></section><section id="ID9F0F27F606DC422A844284B607F35046"><enum>103.</enum><header>Transition payments to <p> States</header> <p> <subsection id="IDCE0A42B6CA48411498808B6C86F1A50C"><enum>(a)</enum><header>Definitions</header><text>In <p> this section:</text> <p> <paragraph id="ID91DEED7D5E7C452DB5F8465365059721"><enum>(1)</enum><header>Adjusted <p> amount</header><text>The term <term>adjusted amount</term> means, with respect <p> to a covered State—</text> <p> <subparagraph id="ID2A3C4343299B49CFAC1C40CA5CD942CD"><enum>(A)</enum><text>for fiscal year 2008, 90 <p> percent of—</text> <p> <clause id="ID38DF233E3DE24A36ABB04C203CAD9715"><enum>(i)</enum><text>the sum of the amounts <p> paid for fiscal year 2006 under section 102(a)(2) (as in effect on September <p> 29, 2006) for the eligible counties in the covered State that have elected <p> under section 102(b) to receive a share of the State payment for fiscal year <p> 2008; and</text> <p> </clause><clause id="ID0350CAA99C57442EA5902F41AC753258"><enum>(ii)</enum><text>the sum of the amounts <p> paid for fiscal year 2006 under section 103(a)(2) (as in effect on September <p> 29, 2006) for the eligible counties in the State of Oregon that have elected <p> under section 102(b) to receive the county payment for fiscal year 2008;</text> <p> </clause></subparagraph><subparagraph id="IDE02F4B117AD049E3B43B7CEE511E5753"><enum>(B)</enum><text>for fiscal year 2009, 81 <p> percent of—</text> <p> <clause id="IDC0514D8D0A074FC1B15FF477DFA189F2"><enum>(i)</enum><text>the sum of the amounts <p> paid for fiscal year 2006 under section 102(a)(2) (as in effect on September <p> 29, 2006) for the eligible counties in the covered State that have elected <p> under section 102(b) to receive a share of the State payment for fiscal year <p> 2009; and</text> <p> </clause><clause id="ID38EA6AC6FF254900BCC46A504E6D62F1"><enum>(ii)</enum><text>the sum of the amounts <p> paid for fiscal year 2006 under section 103(a)(2) (as in effect on September <p> 29, 2006) for the eligible counties in the State of Oregon that have elected <p> under section 102(b) to receive the county payment for fiscal year 2009; <p> and</text> <p> </clause></subparagraph><subparagraph id="IDD019C47FBE604499B86FD27BF263D90F"><enum>(C)</enum><text>for fiscal year 2010, 73 <p> percent of—</text> <p> <clause id="ID7D35CD69CA144A1983A2B4A3059D7DAE"><enum>(i)</enum><text>the sum of the amounts <p> paid for fiscal year 2006 under section 102(a)(2) (as in effect on September <p> 29, 2006) for the eligible counties in the covered State that have elected <p> under section 102(b) to receive a share of the State payment for fiscal year <p> 2010; and</text> <p> </clause><clause id="ID32AD3A06F6D047BAAEBAB6DB6CD76D42"><enum>(ii)</enum><text>the sum of the amounts <p> paid for fiscal year 2006 under section 103(a)(2) (as in effect on September <p> 29, 2006) for the eligible counties in the State of Oregon that have elected <p> under section 102(b) to receive the county payment for fiscal year 2010.</text> <p> </clause></subparagraph></paragraph><paragraph id="ID9789546269FF4B2EA1DAE399B4F54167"><enum>(2)</enum><header>Covered <p> state</header><text>The term <term>covered State</term> means each of the <p> States of California, Louisiana, Oregon, Pennsylvania, South Carolina, South <p> Dakota, Texas, and Washington.</text> <p> </paragraph></subsection><subsection id="ID0899BF7DBA4444668A8069448C48673B"><enum>(b)</enum><header>Transition <p> Payments</header><text>For each of fiscal years 2008 through 2010, in lieu of <p> the payment amounts that otherwise would have been made under paragraphs (1)(B) <p> and (2)(B) of section 102(a), the Secretary of the Treasury shall pay the <p> adjusted amount to each covered State and the eligible counties within the <p> covered State, as applicable.</text> <p> </subsection><subsection id="IDF1C069A0C25E4532BF2C6DE0C465F121"><enum>(c)</enum><header>Distribution of <p> Adjusted Amount</header><text>Except as provided in subsection (d), it is the <p> intent of Congress that the method of distributing the payments under <p> subsection (b) among the counties in the covered States for each of fiscal <p> years 2008 through 2010 be in the same proportion that the payments were <p> distributed to the eligible counties in fiscal year 2006.</text> <p> </subsection><subsection id="ID123E85B85D6046A693ECC6435A5BF1FE"><enum>(d)</enum><header>Distribution of <p> Payments in California</header><text>The following payments shall be <p> distributed among the eligible counties in the State of California in the same <p> proportion that payments under section 102(a)(2) (as in effect on September 29, <p> 2006) were distributed to the eligible counties for fiscal year 2006:</text> <p> <paragraph id="ID3D4BBC5F0242449B98D9B16C3D33E563"><enum>(1)</enum><text>Payments to the State of <p> California under subsection (b).</text> <p> </paragraph><paragraph id="ID4AE5EE99D1274F22AE1D1367C342BD75"><enum>(2)</enum><text>The shares of the <p> eligible counties of the State payment for California under section 102 for <p> fiscal year 2011.</text> <p> </paragraph></subsection><subsection id="IDF8EBEB42C1264C4FAE53138E6AEEC242"><enum>(e)</enum><header>Treatment of <p> Payments</header><text>For purposes of this Act, any payment made under <p> subsection (b) shall be considered to be a payment made under section <p> 102(a).</text> <p> </subsection></section><enum>II</enum><header>SPECIAL PROJECTS ON <p> FEDERAL LAND</header> <p> <section id="IDB594CFC3D2B14155BD15084138C85773"><enum>201.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text> <p> <paragraph id="ID34E6BD92F15E4509BA41698BB6383891"><enum>(1)</enum><header>Participating <p> county</header><text>The term <term>participating county</term> means an <p> eligible county that elects under section 102(d) to expend a portion of the <p> Federal funds received under section 102 in accordance with this title.</text> <p> </paragraph><paragraph id="IDEA8873DED4C04857AC376F50DABB7129"><enum>(2)</enum><header>Project <p> funds</header><text>The term <term>project funds</term> means all funds an <p> eligible county elects under section 102(d) to reserve for expenditure in <p> accordance with this title.</text> <p> </paragraph><paragraph id="ID6762F7F6BF4945EF80A785AF007B8234"><enum>(3)</enum><header>Resource advisory <p> committee</header><text>The term <term>resource advisory committee</term> <p> means—</text> <p> <subparagraph id="ID0F1E96AA40F141239D64082885BA12FC"><enum>(A)</enum><text>an advisory committee <p> established by the Secretary concerned under section 205; or</text> <p> </subparagraph><subparagraph id="IDC4F10B6FADE04E7093201A4B4A8D2153"><enum>(B)</enum><text>an advisory committee <p> determined by the Secretary concerned to meet the requirements of section <p> 205.</text> <p> </subparagraph></paragraph><paragraph id="IDEE56F670A15944EDA0B767CBF453E301"><enum>(4)</enum><header>Resource management <p> plan</header><text>The term <term>resource management plan</term> means—</text> <p> <subparagraph id="IDE54E5B3B2DEC451AA92CA431F5938C1E"><enum>(A)</enum><text>a land use plan prepared <p> by the Bureau of Land Management for units of the Federal land described in <p> section 3(7)(B) pursuant to section 202 of the <act-name parsable-cite="FLPMA">Federal Land Policy and Management Act of 1976</act-name> <p> (<external-xref legal-doc="usc" parsable-cite="usc/43/1712">43 U.S.C. 1712</external-xref>); or</text> <p> </subparagraph><subparagraph id="IDABACF7D4D75E4FA0A55EC3D3D77A7C1B"><enum>(B)</enum><text>a land and resource <p> management plan prepared by the Forest Service for units of the National Forest <p> System pursuant to section 6 of the <act-name parsable-cite="FRRRP">Forest and <p> Rangeland Renewable Resources Planning Act of 1974</act-name> (16 U.S.C. <p> 1604).</text> <p> </subparagraph></paragraph></section><section id="IDE4FA3C7BF4E54374A68BACAD4EBEC1B6"><enum>202.</enum><header>General limitation on <p> use of project funds</header> <p> <subsection id="ID7C1F480E213545248C7752E4997B9838"><enum>(a)</enum><header>Limitation</header><text>Project <p> funds shall be expended solely on projects that meet the requirements of this <p> title.</text> <p> </subsection><subsection id="ID70108968ED8D432C9B41F75D06A92BEF"><enum>(b)</enum><header>Authorized <p> Uses</header><text>Project funds may be used by the Secretary concerned for the <p> purpose of entering into and implementing cooperative agreements with willing <p> Federal agencies, State and local governments, private and nonprofit entities, <p> and landowners for protection, restoration, and enhancement of fish and <p> wildlife habitat, and other resource objectives consistent with the purposes of <p> this Act on Federal land and on non-Federal land where projects would benefit <p> the resources on Federal land.</text> <p> </subsection></section><section id="ID6F70D71F276346CDA234DB05D0FDF5FA"><enum>203.</enum><header>Submission of project <p> proposals</header> <p> <subsection id="ID6C8D494747944601982971C04B39BA4B"><enum>(a)</enum><header>Submission of Project <p> Proposals to Secretary Concerned</header> <p> <paragraph id="IDC06ABC925EA84AA8BCF4BB5E911ACAD1"><enum>(1)</enum><header>Projects funded using <p> project funds</header><text>Not later than September 30 for fiscal year 2008 <p> (or as soon thereafter as the Secretary concerned determines is practicable), <p> and each September 30 thereafter for each succeeding fiscal year through fiscal <p> year 2011, each resource advisory committee shall submit to the Secretary <p> concerned a description of any projects that the resource advisory committee <p> proposes the Secretary undertake using any project funds reserved by eligible <p> counties in the area in which the resource advisory committee has geographic <p> jurisdiction.</text> <p> </paragraph><paragraph id="ID1C8EFFAEF80A4150987342B6B68D6498"><enum>(2)</enum><header>Projects funded using <p> other funds</header><text>A resource advisory committee may submit to the <p> Secretary concerned a description of any projects that the committee proposes <p> the Secretary undertake using funds from State or local governments, or from <p> the private sector, other than project funds and funds appropriated and <p> otherwise available to do similar work.</text> <p> </paragraph><paragraph id="IDFB148C40E8034C12B56EBA06C8E81280"><enum>(3)</enum><header>Joint <p> projects</header><text>Participating counties or other persons may propose to <p> pool project funds or other funds, described in paragraph (2), and jointly <p> propose a project or group of projects to a resource advisory committee <p> established under section 205.</text> <p> </paragraph></subsection><subsection id="IDDC2C9CFBF59544269C5B168266E384E9"><enum>(b)</enum><header>Required Description of <p> Projects</header><text>In submitting proposed projects to the Secretary <p> concerned under subsection (a), a resource advisory committee shall include in <p> the description of each proposed project the following information:</text> <p> <paragraph id="ID4ABBA10FF29140BFA428545BABEA9B5C"><enum>(1)</enum><text>The purpose of the <p> project and a description of how the project will meet the purposes of this <p> title.</text> <p> </paragraph><paragraph id="ID1A559DC39CFD401BB71A1F9894CB3CC4"><enum>(2)</enum><text>The anticipated duration <p> of the project.</text> <p> </paragraph><paragraph id="IDE8B4152EB5964F22B32EE033EFFA79BD"><enum>(3)</enum><text>The anticipated cost of <p> the project.</text> <p> </paragraph><paragraph id="IDF7C67BDFDDAB4C86B05BE6736A524A44"><enum>(4)</enum><text>The proposed source of <p> funding for the project, whether project funds or other funds.</text> <p> </paragraph><paragraph id="ID5B3C42A38E4F4FB590041608F1BE0C08"><enum>(5)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="ID76F85C919F1141728D3482B6CB9D75F7"><enum>(A)</enum><text>Expected outcomes, <p> including how the project will meet or exceed desired ecological conditions, <p> maintenance objectives, or stewardship objectives.</text> <p> </subparagraph><subparagraph changed="added" id="ID8DE68B76E5BF405F953A9BBDEE9373DC" indent="up1" reported-display-style="italic"><enum>(B)</enum><text>An <p> estimate of the amount of any timber, forage, and other commodities and other <p> economic activity, including jobs generated, if any, anticipated as part of the <p> project.</text> <p> </subparagraph></paragraph><paragraph id="ID629BCD0F737742218CBBE45FB65A7BE5"><enum>(6)</enum><text>A detailed monitoring <p> plan, including funding needs and sources, that—</text> <p> <subparagraph id="ID4C64A807FEB1453A9C4FBD916D0E3FEF"><enum>(A)</enum><text>tracks and identifies the <p> positive or negative impacts of the project, implementation, and provides for <p> validation monitoring; and</text> <p> </subparagraph><subparagraph id="IDB3B60150069A427A95CBDE58207E43A1"><enum>(B)</enum><text>includes an assessment of <p> the following:</text> <p> <clause id="IDCD82970549B144EFAD11566C8CC1E543"><enum>(i)</enum><text>Whether or not the <p> project met or exceeded desired ecological conditions; created local employment <p> or training opportunities, including summer youth jobs programs such as the <p> Youth Conservation Corps where appropriate.</text> <p> </clause><clause id="IDB222781DA66B4669B99041DC726D70FE"><enum>(ii)</enum><text>Whether the project <p> improved the use of, or added value to, any products removed from land <p> consistent with the purposes of this title.</text> <p> </clause></subparagraph></paragraph><paragraph id="ID29A5D4A1C44043E88E5E66B764F31971"><enum>(7)</enum><text>An assessment that the <p> project is to be in the public interest.</text> <p> </paragraph></subsection><subsection id="IDF5E113F34B2140BABDFAD0C0FFE48C19"><enum>(c)</enum><header>Authorized <p> Projects</header><text>Projects proposed under subsection (a) shall be <p> consistent with section 2.</text> <p> </subsection></section><section id="IDA3AAEAA42BD04808AFC1050EB0CC14ED"><enum>204.</enum><header>Evaluation and <p> approval of projects by Secretary concerned</header> <p> <subsection id="ID5ACE883501A649F69F79A035CA715215"><enum>(a)</enum><header>Conditions for Approval <p> of Proposed Project</header><text>The Secretary concerned may make a decision <p> to approve a project submitted by a resource advisory committee under section <p> 203 only if the proposed project satisfies each of the following <p> conditions:</text> <p> <paragraph id="IDDCCB5294F97C4D29816C43469DBE33FC"><enum>(1)</enum><text>The project complies with <p> all applicable Federal laws (including regulations).</text> <p> </paragraph><paragraph id="ID6B2CD0AD14934D64936F25DCBD40F527"><enum>(2)</enum><text>The project is consistent <p> with the applicable resource management plan and with any watershed or <p> subsequent plan developed pursuant to the resource management plan and approved <p> by the Secretary concerned.</text> <p> </paragraph><paragraph id="ID4B2D539E86E04CC585E46DEC76DCC478"><enum>(3)</enum><text>The project has been <p> approved by the resource advisory committee in accordance with section 205, <p> including the procedures issued under subsection (e) of that section.</text> <p> </paragraph><paragraph id="ID17287D5723E44D89A2ACD8487FAD83D9"><enum>(4)</enum><text>A project description has <p> been submitted by the resource advisory committee to the Secretary concerned in <p> accordance with section 203.</text> <p> </paragraph><paragraph id="IDCEAE22D684464D48B731795362E3898E"><enum>(5)</enum><text>The project will improve <p> the maintenance of existing infrastructure, implement stewardship objectives <p> that enhance forest ecosystems, and restore and improve land health and water <p> quality.</text> <p> </paragraph></subsection><subsection id="ID3E945D6938DA45F0867C1ECFB1399689"><enum>(b)</enum><header>Environmental <p> Reviews</header> <p> <paragraph id="ID420771F989804A989B46F92D0CB5929C"><enum>(1)</enum><header>Request for payment by <p> county</header><text>The Secretary concerned may request the resource advisory <p> committee submitting a proposed project to agree to the use of project funds to <p> pay for any environmental review, consultation, or compliance with applicable <p> environmental laws required in connection with the project.</text> <p> </paragraph><paragraph id="IDEBD1DB71207D4DB3AC237CAFFEC22CF6"><enum>(2)</enum><header>Conduct of <p> environmental review</header><text>If a payment is requested under paragraph <p> (1) and the resource advisory committee agrees to the expenditure of funds for <p> this purpose, the Secretary concerned shall conduct environmental review, <p> consultation, or other compliance responsibilities in accordance with Federal <p> laws (including regulations).</text> <p> </paragraph><paragraph id="ID2E600C98F65D4859A8B9262C1622D805"><enum>(3)</enum><header>Effect of refusal to <p> pay</header> <p> <subparagraph id="ID33707F60745042CE984494E3DBC5222D"><enum>(A)</enum><header>In <p> general</header><text>If a resource advisory committee does not agree to the <p> expenditure of funds under paragraph (1), the project shall be deemed withdrawn <p> from further consideration by the Secretary concerned pursuant to this <p> title.</text> <p> </subparagraph><subparagraph id="ID311EE39B716F400C9BD8D3FB1B712883"><enum>(B)</enum><header>Effect of <p> withdrawal</header><text>A withdrawal under subparagraph (A) shall be deemed to <p> be a rejection of the project for purposes of section 207(c).</text> <p> </subparagraph></paragraph></subsection><subsection id="ID8E86CF0C731B460584DCB3098799FB0C"><enum>(c)</enum><header>Decisions of Secretary <p> Concerned</header> <p> <paragraph id="ID32F25994C0584435B5A762F58A921CB2"><enum>(1)</enum><header>Rejection of <p> projects</header> <p> <subparagraph id="IDE59EB51F7F364DB887B3E37587E1D1B7"><enum>(A)</enum><header>In <p> general</header><text>A decision by the Secretary concerned to reject a <p> proposed project shall be at the sole discretion of the Secretary <p> concerned.</text> <p> </subparagraph><subparagraph id="ID5BBD3AA1BE2846CD850FB31C1E72861D"><enum>(B)</enum><header>No administrative <p> appeal or judicial review</header><text>Notwithstanding any other provision of <p> law, a decision by the Secretary concerned to reject a proposed project shall <p> not be subject to administrative appeal or judicial review.</text> <p> </subparagraph><subparagraph id="IDC5D7188FB02F4B478D83C3B265CF8A8C"><enum>(C)</enum><header>Notice of <p> rejection</header><text>Not later than 30 days after the date on which the <p> Secretary concerned makes the rejection decision, the Secretary concerned shall <p> notify in writing the resource advisory committee that submitted the proposed <p> project of the rejection and the reasons for rejection.</text> <p> </subparagraph></paragraph><paragraph id="IDEBA9AD8173F842779813D69D863189C8"><enum>(2)</enum><header>Notice of project <p> approval</header><text>The Secretary concerned shall publish in the Federal <p> Register notice of each project approved under subsection (a) if the notice <p> would be required had the project originated with the Secretary.</text> <p> </paragraph></subsection><subsection id="ID8C278BF622554033900A8FCDA8A1F37E"><enum>(d)</enum><header>Source and Conduct of <p> Project</header><text>Once the Secretary concerned accepts a project for review <p> under section 203, the acceptance shall be deemed a Federal action for all <p> purposes.</text> <p> </subsection><subsection id="ID65F64EDA417B4E59856E2D2E7B5DC98E"><enum>(e)</enum><header>Implementation of <p> Approved Projects</header> <p> <paragraph id="ID3B8A92E87DD54346AE8C76F14D2E2CEA"><enum>(1)</enum><header>Cooperation</header><text>Notwithstanding <p> <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/63">chapter 63</external-xref> of title 31, United States Code, using project funds the Secretary <p> concerned may enter into contracts, grants, and cooperative agreements with <p> States and local governments, private and nonprofit entities, and landowners <p> and other persons to assist the Secretary in carrying out an approved <p> project.</text> <p> </paragraph><paragraph id="ID28E7A77CB0AA42C29718A57D618263BF"><enum>(2)</enum><header>Best value <p> contracting</header> <p> <subparagraph id="ID7A63CDBB9CE64361BE05E71E370B719E"><enum>(A)</enum><header>In <p> general</header><text>For any project involving a contract authorized by <p> paragraph (1) the Secretary concerned may elect a source for performance of the <p> contract on a best value basis.</text> <p> </subparagraph><subparagraph id="IDF8F586DB86274E518DE5897ACB8A2A29"><enum>(B)</enum><header>Factors</header><text>The <p> Secretary concerned shall determine best value based on such factors as—</text> <p> <clause id="ID34CA27DBE78F466180A5D5C9E1FCDBDC"><enum>(i)</enum><text>the technical demands and <p> complexity of the work to be done;</text> <p> </clause><clause id="ID6C53B14EEF8A40C7AEBCC3CBCAA52376"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="IDF6766EBC86104C758BE8CC66E8095026"><enum>(I)</enum><text>the ecological <p> objectives of the project; and</text> <p> </subclause><subclause changed="added" id="IDA7573E096358439AB5C3B9EC0A6A08B5" indent="up1" reported-display-style="italic"><enum>(II)</enum><text>the <p> sensitivity of the resources being treated;</text> <p> </subclause></clause><clause id="IDC98D4682FC2648EFBF6D1F6C25BF431F"><enum>(iii)</enum><text>the past experience by <p> the contractor with the type of work being done, using the type of equipment <p> proposed for the project, and meeting or exceeding desired ecological <p> conditions; and</text> <p> </clause><clause id="IDFDA004BBEF75403D811E655AF929BC4B"><enum>(iv)</enum><text>the commitment of the <p> contractor to hiring highly qualified workers and local residents.</text> <p> </clause></subparagraph></paragraph><paragraph id="ID983A9F66E6014D96A3F32074C97E4DF0"><enum>(3)</enum><header>Merchantable timber <p> contracting pilot program</header> <p> <subparagraph id="IDFFA494C2F4E142968EB931BB9C490A8B"><enum>(A)</enum><header>Establishment</header><text>The <p> Secretary concerned shall establish a pilot program to implement a certain <p> percentage of approved projects involving the sale of merchantable timber using <p> separate contracts for—</text> <p> <clause id="IDEE97C051438147D186371719BA0E340D"><enum>(i)</enum><text>the harvesting or <p> collection of merchantable timber; and</text> <p> </clause><clause id="IDB7FD1192E6D0474684CEBF2CA584E0D5"><enum>(ii)</enum><text>the sale of the <p> timber.</text> <p> </clause></subparagraph><subparagraph id="IDDCD3570D81644CF69DB24251B47312AF"><enum>(B)</enum><header>Annual <p> percentages</header><text>Under the pilot program, the Secretary concerned <p> shall ensure that, on a nationwide basis, not less than the following <p> percentage of all approved projects involving the sale of merchantable timber <p> are implemented using separate contracts:</text> <p> <clause id="ID3CF1EB1233C24E2D8DDB29865804AD54"><enum>(i)</enum><text>For fiscal year 2008, 35 <p> percent.</text> <p> </clause><clause id="ID907954E7FA7147AB881840AF74210646"><enum>(ii)</enum><text>For fiscal year 2009, 45 <p> percent.</text> <p> </clause><clause id="IDCBB97EF7FC104069AE690491C32C43BC"><enum>(iii)</enum><text>For each of fiscal <p> years 2010 and 2011, 50 percent.</text> <p> </clause></subparagraph><subparagraph id="ID7BF0CD1B02334D3A9C51D0A7B037F04C"><enum>(C)</enum><header>Inclusion in pilot <p> program</header><text>The decision whether to use separate contracts to <p> implement a project involving the sale of merchantable timber shall be made by <p> the Secretary concerned after the approval of the project under this <p> title.</text> <p> </subparagraph><subparagraph id="IDAABE5481EE26466C9C686FB42506E06B"><enum>(D)</enum><header>Assistance</header> <p> <clause id="ID17DCDBB55A0E41E0976B32128C062661"><enum>(i)</enum><header>In <p> general</header><text>The Secretary concerned may use funds from any <p> appropriated account available to the Secretary for the Federal land to assist <p> in the administration of projects conducted under the pilot program.</text> <p> </clause><clause id="IDD3EAA6EB11CA460D92E1F7C81DEA3258"><enum>(ii)</enum><header>Maximum amount of <p> assistance</header><text>The total amount obligated under this subparagraph may <p> not exceed $1,000,000 for any fiscal year during which the pilot program is in <p> effect.</text> <p> </clause></subparagraph><subparagraph id="ID52CE739BD7C44179944C559EAB90CE97"><enum>(E)</enum><header>Review and <p> report</header> <p> <clause id="ID1EA12E7C95F44838BA93424805DD7469"><enum>(i)</enum><header>Initial <p> report</header><text>Not later than September 30, 2010, the Comptroller General <p> shall submit to the Committees on Agriculture, Nutrition, and Forestry and <p> Energy and Natural Resources of the Senate and the Committees on Agriculture <p> and Natural Resources of the House of Representatives a report assessing the <p> pilot program.</text> <p> </clause><clause id="ID70218D4E9B7E4081A58E9EA464FE9EAE"><enum>(ii)</enum><header>Annual <p> report</header><text>The Secretary concerned shall submit to the Committees on <p> Agriculture, Nutrition, and Forestry and Energy and Natural Resources of the <p> Senate and the Committees on Agriculture and Natural Resources of the House of <p> Representatives an annual report describing the results of the pilot <p> program.</text> <p> </clause></subparagraph></paragraph></subsection><subsection id="IDB09D33D58BF54C9C8D4EF8396D81B212"><enum>(f)</enum><header>Requirements for <p> Project Funds</header><text>The Secretary shall ensure that at least 50 percent <p> of all project funds be used for projects that are primarily dedicated—</text> <p> <paragraph id="ID72035900FC154261935AE55816B9D652"><enum>(1)</enum><text>to road maintenance, <p> decommissioning, or obliteration; or</text> <p> </paragraph><paragraph id="ID489A5A9C671E48458CF45ACF63E75B10"><enum>(2)</enum><text>to restoration of streams <p> and watersheds.</text> <p> </paragraph></subsection></section><section id="ID05D2A3B60805445CB6E120083C811B59"><enum>205.</enum><header>Resource advisory <p> Committees</header> <p> <subsection id="ID4A2959AB8A87498D972AA41EB57B2AEF"><enum>(a)</enum><header>Establishment and <p> Purpose of Resource Advisory Committees</header> <p> <paragraph id="IDAA6AD1A6F1EF4500877471866D0E151E"><enum>(1)</enum><header>Establishment</header><text>The <p> Secretary concerned shall establish and maintain resource advisory committees <p> to perform the duties in subsection (b), except as provided in paragraph <p> (4).</text> <p> </paragraph><paragraph id="IDD59F04DBBE164BA3B45BCB02D78E1E4B"><enum>(2)</enum><header>Purpose</header><text>The <p> purpose of a resource advisory committee shall be—</text> <p> <subparagraph id="ID6049285625B647CCBC4284CE9168B1EB"><enum>(A)</enum><text>to improve collaborative <p> relationships; and</text> <p> </subparagraph><subparagraph id="IDF0297BF9F686416B873E57A46BC488DB"><enum>(B)</enum><text>to provide advice and <p> recommendations to the land management agencies consistent with the purposes of <p> this title.</text> <p> </subparagraph></paragraph><paragraph id="ID63BB951C70F94C81B1FB867E3CF5CC37"><enum>(3)</enum><header>Access to resource <p> advisory committees</header><text>To ensure that each unit of Federal land has <p> access to a resource advisory committee, and that there is sufficient interest <p> in participation on a committee to ensure that membership can be balanced in <p> terms of the points of view represented and the functions to be performed, the <p> Secretary concerned may, establish resource advisory committees for part of, or <p> 1 or more, units of Federal land.</text> <p> </paragraph><paragraph id="IDA61F77540FE9422292FFC9B2EF9C0571"><enum>(4)</enum><header>Existing advisory <p> committees</header> <p> <subparagraph id="IDC10EAD300B5D40F7833CAE1C3340A965"><enum>(A)</enum><header>In <p> general</header><text>An advisory committee that meets the requirements of this <p> section, a resource advisory committee established before September 29, 2006, <p> or an advisory committee determined by the Secretary concerned before September <p> 29, 2006, to meet the requirements of this section may be deemed by the <p> Secretary concerned to be a resource advisory committee for the purposes of <p> this title.</text> <p> </subparagraph><subparagraph id="IDCB4431163E954FC1AEE1C202B811D252"><enum>(B)</enum><header>Charter</header><text>A <p> charter for a committee described in subparagraph (A) that was filed on or <p> before September 29, 2006, shall be considered to be filed for purposes of this <p> Act.</text> <p> </subparagraph><subparagraph id="ID706B6EE6CCBC49EB9764BC730ABE4260"><enum>(C)</enum><header>Bureau of land <p> management advisory committees</header><text>The Secretary of the Interior may <p> deem a resource advisory committee meeting the requirements of subpart 1784 of <p> part 1780 of title 43, Code of Federal Regulations, as a resource advisory <p> committee for the purposes of this title.</text> <p> </subparagraph></paragraph></subsection><subsection id="ID80158F5E00524C69A79516BF135BCD4E"><enum>(b)</enum><header>Duties</header><text>A <p> resource advisory committee shall—</text> <p> <paragraph id="ID752E2D2288C54318A22AF3D903223DFD"><enum>(1)</enum><text>review projects proposed <p> under this title by participating counties and other persons;</text> <p> </paragraph><paragraph id="ID34D7D791C3C642679AB41DDF45C6718F"><enum>(2)</enum><text>propose projects and <p> funding to the Secretary concerned under section 203;</text> <p> </paragraph><paragraph id="ID5D060BAAFCAE46B780847EFC76A73629"><enum>(3)</enum><text>provide early and <p> continuous coordination with appropriate land management agency officials in <p> recommending projects consistent with purposes of this Act under this <p> title;</text> <p> </paragraph><paragraph id="ID95D58838F7924C30891E3452C769DC29"><enum>(4)</enum><text>provide frequent <p> opportunities for citizens, organizations, tribes, land management agencies, <p> and other interested parties to participate openly and meaningfully, beginning <p> at the early stages of the project development process under this title;</text> <p> </paragraph><paragraph id="ID7B72A778BFF94A91B9592FF17D86A0A0"><enum>(5)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="IDEB3FA89F840646E8BA255A5BB3F8D9D1"><enum>(A)</enum><text>monitor projects that <p> have been approved under section 204; and</text> <p> </subparagraph><subparagraph changed="added" id="IDA2856BF1C6DB491C9D3CAD49E2A107B1" indent="up1" reported-display-style="italic"><enum>(B)</enum><text>advise <p> the designated Federal official on the progress of the monitoring efforts under <p> subparagraph (A); and</text> <p> </subparagraph></paragraph><paragraph id="ID56B4156B9A724517B3B9C4760B5155FD"><enum>(6)</enum><text>make recommendations to <p> the Secretary concerned for any appropriate changes or adjustments to the <p> projects being monitored by the resource advisory committee.</text> <p> </paragraph></subsection><subsection id="IDA2B44E7C9D6440D28A7E79808F782CF0"><enum>(c)</enum><header>Appointment by the <p> Secretary</header> <p> <paragraph id="IDE5C8A2E0A1D640F1B9B2B0185496D156"><enum>(1)</enum><header>Appointment and <p> term</header> <p> <subparagraph id="IDB6A854AA97B3420CBBC9753627A277BD"><enum>(A)</enum><header>In <p> general</header><text>The Secretary concerned, shall appoint the members of <p> resource advisory committees for a term of 4 years beginning on the date of <p> appointment.</text> <p> </subparagraph><subparagraph id="IDDDE759A17BF74C1BA7DD28F349D25902"><enum>(B)</enum><header>Reappointment</header><text>The <p> Secretary concerned may reappoint members to subsequent 4-year terms.</text> <p> </subparagraph></paragraph><paragraph id="IDF5D399355EC0488897437D0EF6292F5E"><enum>(2)</enum><header>Basic <p> requirements</header><text>The Secretary concerned shall ensure that each <p> resource advisory committee established meets the requirements of subsection <p> (d).</text> <p> </paragraph><paragraph id="ID82B4437D14A3419BBA22746ABF555BC8"><enum>(3)</enum><header>Initial <p> appointment</header><text>Not later than 180 days after the date of the <p> enactment of this Act, the Secretary concerned shall make initial appointments <p> to the resource advisory committees.</text> <p> </paragraph><paragraph id="IDFDEC89C81E28453A8DA4F675A0701A25"><enum>(4)</enum><header>Vacancies</header><text>The <p> Secretary concerned shall make appointments to fill vacancies on any resource <p> advisory committee as soon as practicable after the vacancy has <p> occurred.</text> <p> </paragraph><paragraph id="ID43DF46D21CE4451F82F914ACD4F41F19"><enum>(5)</enum><header>Compensation</header><text>Members <p> of the resource advisory committees shall not receive any compensation.</text> <p> </paragraph></subsection><subsection id="ID87F654410F3F469DA90015C61B42AB52"><enum>(d)</enum><header>Composition of Advisory <p> Committee</header> <p> <paragraph id="ID8DA9BEA0DCAE43799EBF608D09DFFA78"><enum>(1)</enum><header>Number</header><text>Each <p> resource advisory committee shall be comprised of 15 members.</text> <p> </paragraph><paragraph id="ID27CC9F7FA40D468FAA5DB80BFA5F2DF0"><enum>(2)</enum><header>Community interests <p> represented</header><text>Committee members shall be representative of the <p> interests of the following 3 categories:</text> <p> <subparagraph id="ID6465FA7DCF144D8C9A6503EE70C4B193"><enum>(A)</enum><text>5 persons that—</text> <p> <clause id="ID4CAEFDACBB9C4205A6E5EB07843A05B9"><enum>(i)</enum><text>represent organized labor <p> or non-timber forest product harvester groups;</text> <p> </clause><clause id="ID9EA7DEEA0D8D4CB2A451953577A02F2D"><enum>(ii)</enum><text>represent developed <p> outdoor recreation, off highway vehicle users, or commercial recreation <p> activities;</text> <p> </clause><clause id="IDF76EEE56023745E1A3565460D6E0107F"><enum>(iii)</enum><text>represent—</text> <p> <subclause id="ID10DE31C66DA8429381636A514BB64AF3"><enum>(I)</enum><text>energy and mineral <p> development interests; or</text> <p> </subclause><subclause id="ID629F9F7FECA34C3B9AE05445AA907BCA"><enum>(II)</enum><text>commercial or <p> recreational fishing interests;</text> <p> </subclause></clause><clause id="ID72EAC45840FE4D30BCC944E7CB14BBEE"><enum>(iv)</enum><text>represent the commercial <p> timber industry; or</text> <p> </clause><clause id="IDE8B510A4F564413683D909939D466BB4"><enum>(v)</enum><text>hold Federal grazing or <p> other land use permits, or represent nonindustrial private forest land owners, <p> within the area for which the committee is organized.</text> <p> </clause></subparagraph><subparagraph id="ID9C57644722B7431DB3828E6D88DD88BB"><enum>(B)</enum><text>5 persons that <p> represent—</text> <p> <clause id="IDE9CA783E34C54FA2BC69AC5E7B42A524"><enum>(i)</enum><text>nationally recognized <p> environmental organizations;</text> <p> </clause><clause id="IDABC1304EC6ED4663953FADF7F6692189"><enum>(ii)</enum><text>regionally or locally <p> recognized environmental organizations;</text> <p> </clause><clause id="IDC3B09FD1C8E0461993F8F429C40E335B"><enum>(iii)</enum><text>dispersed recreational <p> activities;</text> <p> </clause><clause id="ID3DF5003158F941628EE2D4F3C3DB58F8"><enum>(iv)</enum><text>archaeological and <p> historical interests; or</text> <p> </clause><clause id="ID51AC5220584F40D1AC77F622C5F7680F"><enum>(v)</enum><text>nationally or regionally <p> recognized wild horse and burro interest groups, wildlife or hunting <p> organizations, or watershed associations.</text> <p> </clause></subparagraph><subparagraph id="ID000E2F35557F4FA29C80F1EF619240A2"><enum>(C)</enum><text>5 persons that—</text> <p> <clause id="ID1A49747ECDDE4D8D8EC154DD3A252863"><enum>(i)</enum><text>hold State elected office <p> (or a designee);</text> <p> </clause><clause id="ID40A93C8D6E364B3BBC9EED37A228F00C"><enum>(ii)</enum><text>hold county or local <p> elected office;</text> <p> </clause><clause id="IDA3D009C7B2524EA39AFBC834FC019FD4"><enum>(iii)</enum><text>represent American <p> Indian tribes within or adjacent to the area for which the committee is <p> organized;</text> <p> </clause><clause id="ID926EB2D797EF4DD6976D7B4E61BA2B20"><enum>(iv)</enum><text>are school officials or <p> teachers; or</text> <p> </clause><clause id="IDE284672C5638423B99BE6F25902AC46D"><enum>(v)</enum><text>represent the affected <p> public at large.</text> <p> </clause></subparagraph></paragraph><paragraph id="ID102D4DC4F2BE4B8C9E275AC3C11562EA"><enum>(3)</enum><header>Balanced <p> representation</header><text>In appointing committee members from the 3 <p> categories in paragraph (2), the Secretary concerned shall provide for balanced <p> and broad representation from within each category.</text> <p> </paragraph><paragraph id="IDA270F594BD2C4913A9B047B5EE425F77"><enum>(4)</enum><header>Geographic <p> distribution</header><text>The members of a resource advisory committee shall <p> reside within the State in which the committee has jurisdiction and, to extent <p> practicable, the Secretary concerned shall ensure local representation in each <p> category in paragraph (2).</text> <p> </paragraph><paragraph id="IDB80E8FF4B96A4776B37AE3FAFB8C4A48"><enum>(5)</enum><header>Chairperson</header><text>A <p> majority on each resource advisory committee shall select the chairperson of <p> the committee.</text> <p> </paragraph></subsection><subsection id="IDF1C86B5E3821409FBA1112804AAC584E"><enum>(e)</enum><header>Approval <p> Procedures</header> <p> <paragraph id="IDFE1FA818F9FC4EBD99F10467FCD1E472"><enum>(1)</enum><header>In <p> general</header><text>Subject to paragraph (3), each resource advisory <p> committee shall establish procedures for proposing projects to the Secretary <p> concerned under this title.</text> <p> </paragraph><paragraph id="IDE6CBA2EA6588418B841E92C13C39CE22"><enum>(2)</enum><header>Quorum</header><text>A <p> quorum must be present to constitute an official meeting of the <p> committee.</text> <p> </paragraph><paragraph id="ID840F2A6BF46A40F894E3D0DF1F4549D5"><enum>(3)</enum><header>Approval by majority of <p> members</header><text>A project may be proposed by a resource advisory <p> committee to the Secretary concerned under section 203(a), if the project has <p> been approved by a majority of members of the committee from each of the 3 <p> categories in subsection (d)(2).</text> <p> </paragraph></subsection><subsection id="ID787DE597DC2A4F299AF859D8E4CEAC10"><enum>(f)</enum><header>Other Committee <p> Authorities and Requirements</header> <p> <paragraph id="IDCCA398D0F2474072911443AA3E708BE6"><enum>(1)</enum><header>Staff <p> assistance</header><text>A resource advisory committee may submit to the <p> Secretary concerned a request for periodic staff assistance from Federal <p> employees under the jurisdiction of the Secretary.</text> <p> </paragraph><paragraph id="ID55E51B66CEF04A4F8399A5EE02E94289"><enum>(2)</enum><header>Meetings</header><text>All <p> meetings of a resource advisory committee shall be announced at least 1 week in <p> advance in a local newspaper of record and shall be open to the public.</text> <p> </paragraph><paragraph id="ID3ABAEDAD65364A5E8E5FA953072FFF53"><enum>(3)</enum><header>Records</header><text>A <p> resource advisory committee shall maintain records of the meetings of the <p> committee and make the records available for public inspection.</text> <p> </paragraph></subsection></section><section id="ID8DC8935C319E4CC3A7684A7AB8D02E84"><enum>206.</enum><header>Use of project <p> funds</header> <p> <subsection id="ID4FFB2B38770E4BD9B7901D8F4B02AFBF"><enum>(a)</enum><header>Agreement Regarding <p> Schedule and Cost of Project</header> <p> <paragraph id="ID8A4B6587350F48F3B665DC014DA8BE5F"><enum>(1)</enum><header>Agreement between <p> parties</header><text>The Secretary concerned may carry out a project submitted <p> by a resource advisory committee under section 203(a) using project funds or <p> other funds described in section 203(a)(2), if, as soon as practicable after <p> the issuance of a decision document for the project and the exhaustion of all <p> administrative appeals and judicial review of the project decision, the <p> Secretary concerned and the resource advisory committee enter into an agreement <p> addressing, at a minimum, the following:</text> <p> <subparagraph id="ID25664BDC412A44589D5553C548698B22"><enum>(A)</enum><text>The schedule for <p> completing the project.</text> <p> </subparagraph><subparagraph id="ID4289C78997A543428E601D149C8D5CD8"><enum>(B)</enum><text>The total cost of the <p> project, including the level of agency overhead to be assessed against the <p> project.</text> <p> </subparagraph><subparagraph id="ID5D2EA0058CF94F3EBBDEE24A6E37DEBB"><enum>(C)</enum><text>For a multiyear project, <p> the estimated cost of the project for each of the fiscal years in which it will <p> be carried out.</text> <p> </subparagraph><subparagraph id="ID4FFA2DD22531421A97984C0486770C6C"><enum>(D)</enum><text>The remedies for failure <p> of the Secretary concerned to comply with the terms of the agreement consistent <p> with current Federal law.</text> <p> </subparagraph></paragraph><paragraph id="ID3799DCEC79B24B68B23722186102870B"><enum>(2)</enum><header>Limited use of federal <p> funds</header><text>The Secretary concerned may decide, at the sole discretion <p> of the Secretary concerned, to cover the costs of a portion of an approved <p> project using Federal funds appropriated or otherwise available to the <p> Secretary for the same purposes as the project.</text> <p> </paragraph></subsection><subsection id="ID76C3033D6D8D472392B0AFEF90997B08"><enum>(b)</enum><header>Transfer of Project <p> Funds</header> <p> <paragraph id="IDF0CCBCD167814B9A912C7A6BB08F9DF8"><enum>(1)</enum><header>Initial transfer <p> required</header><text>As soon as practicable after the agreement is reached <p> under subsection (a) with regard to a project to be funded in whole or in part <p> using project funds, or other funds described in section 203(a)(2), the <p> Secretary concerned shall transfer to the applicable unit of National Forest <p> System land or Bureau of Land Management District an amount of project funds <p> equal to—</text> <p> <subparagraph id="IDFC7F74B4457741E99AB380259F475BEA"><enum>(A)</enum><text>in the case of a project <p> to be completed in a single fiscal year, the total amount specified in the <p> agreement to be paid using project funds, or other funds described in section <p> 203(a)(2); or</text> <p> </subparagraph><subparagraph id="IDB21311482ABA45AD9817BE7D10226C9C"><enum>(B)</enum><text>in the case of a <p> multiyear project, the amount specified in the agreement to be paid using <p> project funds, or other funds described in section 203(a)(2) for the first <p> fiscal year.</text> <p> </subparagraph></paragraph><paragraph id="IDE19A4C3BBD3E4E81A816B64BA623D659"><enum>(2)</enum><header>Condition on project <p> commencement</header><text>The unit of National Forest System land or Bureau of <p> Land Management District concerned, shall not commence a project until the <p> project funds, or other funds described in section 203(a)(2) required to be <p> transferred under paragraph (1) for the project, have been made available by <p> the Secretary concerned.</text> <p> </paragraph><paragraph id="ID053FCCE209CF4CF99115AC95E69E6CA2"><enum>(3)</enum><header>Subsequent transfers <p> for multiyear projects</header> <p> <subparagraph id="ID4B2F5D8D2BAC4B8EA85F7BF855AA6857"><enum>(A)</enum><header>In <p> general</header><text>For the second and subsequent fiscal years of a multiyear <p> project to be funded in whole or in part using project funds, the unit of <p> National Forest System land or Bureau of Land Management District concerned <p> shall use the amount of project funds required to continue the project in that <p> fiscal year according to the agreement entered into under subsection <p> (a).</text> <p> </subparagraph><subparagraph id="ID5E200A628CEC41478573C0AA34895B7D"><enum>(B)</enum><header>Suspension of <p> work</header><text>The Secretary concerned shall suspend work on the project if <p> the project funds required by the agreement in the second and subsequent fiscal <p> years are not available.</text> <p> </subparagraph></paragraph></subsection></section><section id="ID94DD87E47B844B17A859E84A3C639298"><enum>207.</enum><header>Availability of <p> project funds</header> <p> <subsection id="IDABA0FF3F121B4365AFE64FE1EA972216"><enum>(a)</enum><header>Submission of Proposed <p> Projects To Obligate Funds</header><text>By September 30, 2008 (or as soon <p> thereafter as the Secretary concerned determines is practicable), and each <p> September 30 thereafter for each succeeding fiscal year through fiscal year <p> 2011, a resource advisory committee shall submit to the Secretary concerned <p> pursuant to section 203(a)(1) a sufficient number of project proposals that, if <p> approved, would result in the obligation of at least the full amount of the <p> project funds reserved by the participating county in the preceding fiscal <p> year.</text> <p> </subsection><subsection id="IDD6DE0B2B31A34E3BA068E6B8CCC7E166"><enum>(b)</enum><header>Use or Transfer of <p> Unobligated Funds</header><text>Subject to section 208, if a resource advisory <p> committee fails to comply with subsection (a) for a fiscal year, any project <p> funds reserved by the participating county in the preceding fiscal year and <p> remaining unobligated shall be available for use as part of the project <p> submissions in the next fiscal year.</text> <p> </subsection><subsection id="ID276B288DDD464280B3C610439019D409"><enum>(c)</enum><header>Effect of Rejection of <p> Projects</header><text>Subject to section 208, any project funds reserved by a <p> participating county in the preceding fiscal year that are unobligated at the <p> end of a fiscal year because the Secretary concerned has rejected one or more <p> proposed projects shall be available for use as part of the project submissions <p> in the next fiscal year.</text> <p> </subsection><subsection id="ID4A4B4D0302744B4284033F31EDB748B7"><enum>(d)</enum><header>Effect of Court <p> Orders</header> <p> <paragraph id="ID90F70762586D4A9DAB146C9ED6AD506A"><enum>(1)</enum><header>In <p> general</header><text>If an approved project under this Act is enjoined or <p> prohibited by a Federal court, the Secretary concerned shall return the <p> unobligated project funds related to the project to the participating county or <p> counties that reserved the funds.</text> <p> </paragraph><paragraph id="ID5429D3D988E84542BEEE6256058CD1B8"><enum>(2)</enum><header>Expenditure of <p> funds</header><text>The returned funds shall be available for the county to <p> expend in the same manner as the funds reserved by the county under <p> subparagraph (B) or (C)(i) of section 102(d)(1).</text> <p> </paragraph></subsection></section><section id="ID6FEED10CE0584918A582249C7989C2C8"><enum>208.</enum><header>Termination of <p> authority</header> <p> <subsection id="ID8490430E0E73457680E30EC88E05883B"><enum>(a)</enum><header>In <p> General</header><text>The authority to initiate projects under this title shall <p> terminate on September 30, 2011.</text> <p> </subsection><subsection id="ID778C6F8F31D740F488183682098BC0A2"><enum>(b)</enum><header>Deposits in <p> Treasury</header><text>Any project funds not obligated by September 30, 2012, <p> shall be deposited in the Treasury of the United States.</text> <p> </subsection></section><enum>III</enum><header>COUNTY FUNDS</header> <p> <section id="IDE66D52DEC3EC4F47BF5B63640BC11D4D"><enum>301.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text> <p> <paragraph id="ID2DBFDD7C38AE427E9A85639392292858"><enum>(1)</enum><header>County <p> funds</header><text>The term <term>county funds</term> means all funds an <p> eligible county elects under section 102(d) to reserve for expenditure in <p> accordance with this title.</text> <p> </paragraph><paragraph id="IDA4BBAA0FEB7C4C65B2284DA4C7290E2F"><enum>(2)</enum><header>Participating <p> county</header><text>The term <term>participating county</term> means an <p> eligible county that elects under section 102(d) to expend a portion of the <p> Federal funds received under section 102 in accordance with this title.</text> <p> </paragraph></section><section id="ID8B79180B7E83491ABBDD4B0A5A1855F3"><enum>302.</enum><header>Use</header> <p> <subsection id="ID43E3DB47D91D4D958F328D0B96CA25CA"><enum>(a)</enum><header>Authorized <p> Uses</header><text>A participating county, including any applicable agencies of <p> the participating county, shall use county funds, in accordance with this <p> title, only—</text> <p> <paragraph id="IDE39D09843D8A45039092E29F7AFB3C0F"><enum>(1)</enum><text>to carry out activities <p> under the Firewise Communities program to provide to homeowners in <p> fire-sensitive ecosystems education on, and assistance with implementing, <p> techniques in home siting, home construction, and home landscaping that can <p> increase the protection of people and property from wildfires;</text> <p> </paragraph><paragraph id="IDC4F139EDA1C340759E241351B0254F46"><enum>(2)</enum><text>to reimburse the <p> participating county for search and rescue and other emergency services, <p> including firefighting, that are—</text> <p> <subparagraph id="IDA93813E5B8354B9F9F9E98E688813C56"><enum>(A)</enum><text>performed on Federal land <p> after the date on which the use was approved under subsection (b);</text> <p> </subparagraph><subparagraph id="IDCB5B5970C3C6495AA4316EC11CA815BA"><enum>(B)</enum><text>paid for by the <p> participating county; and</text> <p> </subparagraph></paragraph><paragraph id="ID4A0CF727EBAD4232BED49BCD14A9B36A"><enum>(3)</enum><text>to develop community <p> wildfire protection plans in coordination with the appropriate Secretary <p> concerned.</text> <p> </paragraph></subsection><subsection id="IDC919267CFB414C658BC34BB4A893814E"><enum>(b)</enum><header>Proposals</header><text>A <p> participating county shall use county funds for a use described in subsection <p> (a) only after a 45-day public comment period, at the beginning of which the <p> participating county shall—</text> <p> <paragraph id="ID8395CF68243D4DFA8F4EAB84D13E745E"><enum>(1)</enum><text>publish in any <p> publications of local record a proposal that describes the proposed use of the <p> county funds; and</text> <p> </paragraph><paragraph id="ID3CA476448BFF4D2BA182FC0AFBD26176"><enum>(2)</enum><text>submit the proposal to <p> any resource advisory committee established under section 205 for the <p> participating county.</text> <p> </paragraph></subsection></section><section id="ID9EDC64070188422794879F6BFAEEAE9B"><enum>303.</enum><header>Certification</header> <p> <subsection id="IDA3BA0E79838E4A70B9BEE8F02B2A307D"><enum>(a)</enum><header>In <p> General</header><text>Not later than February 1 of the year after the year in <p> which any county funds were expended by a participating county, the appropriate <p> official of the participating county shall submit to the Secretary concerned a <p> certification that the county funds expended in the applicable year have been <p> used for the uses authorized under section 302(a), including a description of <p> the amounts expended and the uses for which the amounts were expended.</text> <p> </subsection><subsection id="IDB43549AD98AF46B78BCB2B43737F723D"><enum>(b)</enum><header>Review</header><text>The <p> Secretary concerned shall review the certifications submitted under subsection <p> (a) as the Secretary concerned determines to be appropriate.</text> <p> </subsection></section><section id="ID8080FB84BB9A4D679FEA900F32E3595A"><enum>304.</enum><header>Termination of <p> authority</header> <p> <subsection id="ID086015C8979D4E1D8E4D2EDEA332E2E6"><enum>(a)</enum><header>In <p> General</header><text>The authority to initiate projects under this title <p> terminates on September 30, 2011.</text> <p> </subsection><subsection id="ID84F8CBD4B49A46318D19BDBF4A0D1C20"><enum>(b)</enum><header>Availability</header><text>Any <p> county funds not obligated by September 30, 2012, shall be returned to the <p> Treasury of the United States.</text> <p> </subsection></section><enum>IV</enum><header>MISCELLANEOUS <p> PROVISIONS</header> <p> <section id="IDCAE75187A3B84D8E9F8338029E5C99EE"><enum>401.</enum><header>Regulations</header><text display-inline="no-display-inline">The Secretary of Agriculture and the <p> Secretary of the Interior shall issue regulations to carry out the purposes of <p> this Act.</text> <p> </section><section id="IDDD2130695BA341D49F167C461F7D33D9"><enum>402.</enum><header>Authorization of <p> appropriations</header><text display-inline="no-display-inline">There are <p> authorized to be appropriated such sums as are necessary to carry out this Act <p> for each of fiscal years 2008 through 2011.</text> <p> </section><section id="ID080095E2CBE64B70857AC36DE7E8B835"><enum>403.</enum><header>Treatment of funds and <p> revenues</header> <p> <subsection id="IDBE2F746F421843E799732F6AD383DE61"><enum>(a)</enum><header>Relation to Other <p> Appropriations</header><text>Funds made available under section 402 and funds <p> made available to a Secretary concerned under section 206 shall be in addition <p> to any other annual appropriations for the Forest Service and the Bureau of <p> Land Management.</text> <p> </subsection><subsection id="ID2EF4E13C744647489B68050A88C4073C"><enum>(b)</enum><header>Deposit of Revenues and <p> Other Funds</header><text>All revenues generated from projects pursuant to <p> title II, including any interest accrued from the revenues, shall be deposited <p> in the Treasury of the United <p> States.</text> <p> </subsection></section>.

(b)

Forest receipt payments

to eligible states and counties

(1)

Act of May 23,

1908

The sixth paragraph under the heading FOREST

SERVICE in the Act of May 23, 1908 (16 U.S.C. 500) is

amended in the first sentence by striking twenty-five percentum

and all that follows through shall be paid and inserting the

following: an amount equal to the annual average of 25 percent of all

amounts received for the applicable fiscal year and each of the preceding 6

fiscal years from each national forest shall be paid.

(2)

Weeks

law

Section 13 of the Act of March 1, 1911 (commonly known as the

Weeks Law) (16 U.S.C. 500) is amended in the first sentence by

striking twenty-five percentum and all that follows through

shall be paid and inserting the following: an amount

equal to the annual average of 25 percent of all amounts received for the

applicable fiscal year and each of the preceding 6 fiscal years from each

national forest shall be paid.

(c)

Payments in lieu of

taxes

(1)

In

general

Section 6906 of title 31, United States Code, is amended

to read as follows:

6906.
Funding
For each of fiscal years 2008 through

2012—

(1)each county or other eligible unit of local

government shall be entitled to payment under this chapter; and

(2)sums shall be made available to the

Secretary of the Interior for obligation or expenditure in accordance with this

chapter.

.

(2)

Conforming

amendment

The table of sections for chapter 69 of title 31,

United States Code, is amended by striking the item relating to section 6906

and inserting the following:

6906.

Funding.

.

(3)

Budget

scorekeeping

(A)

In

general

Notwithstanding the Budget Scorekeeping Guidelines and

the accompanying list of programs and accounts set forth in the joint

explanatory statement of the committee of conference accompanying Conference

Report 105–217, the section in this title regarding Payments in Lieu of Taxes

shall be treated in the baseline for purposes of section 257 of the Balanced

Budget and Emergency Deficit Control Act of 1985 (as in effect prior to

September 30, 2002), and by the Chairmen of the House and Senate Budget

Committees, as appropriate, for purposes of budget enforcement in the House and

Senate, and under the Congressional Budget Act of 1974 as if Payment in Lieu of

Taxes (14–1114–0–1–806) were an account designated as Appropriated Entitlements

and Mandatories for Fiscal Year 1997 in the joint explanatory statement of the

committee of conference accompanying Conference Report 105–217.

(B)

Effective

date

This paragraph shall remain in effect for the fiscal years

to which the entitlement in section 6906 of title 31, United States Code (as

amended by paragraph (1)), applies.

602.
Transfer to

abandoned mine reclamation fund

Subparagraph (C) of section 402(i)(1) of the

Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232(i)(1)) is

amended by striking and $9,000,000 on October 1, 2009 and

inserting $9,000,000 on October 1, 2009, and $9,000,000 on October 1,

2010.

<enum>VII</enum><header>Disaster <p> relief</header> <p> <subtitle id="idCDF5B4E64D6A412198DE069C09B1B197"><enum>A</enum><header>Heartland and Hurricane <p> Ike disaster relief</header> <p> <section commented="no" display-inline="no-display-inline" id="id887B82B6E61044598123A2BC72289BA9" section-type="subsequent-section"><enum>701.</enum><header display-inline="yes-display-inline">Short title</header><text display-inline="no-display-inline">This subtitle may be cited as the <p> <quote><short-title>Heartland Disaster Tax Relief Act of <p> 2008</short-title></quote>.</text> <p> </section><section commented="no" display-inline="no-display-inline" id="id610731D28D79402AA084F83537FC89CD" section-type="subsequent-section"><enum>702.</enum><header display-inline="yes-display-inline">Temporary tax relief for areas damaged by <p> 2008 Midwestern severe storms, tornados, and flooding</header> <p> <subsection commented="no" display-inline="no-display-inline" id="idDBEDFBB2B4DF4C6885AB98F1BE82D081"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subject to the modifications described in <p> this section, the following provisions of or relating to the Internal Revenue <p> Code of 1986 shall apply to any Midwestern disaster area in addition to the <p> areas to which such provisions otherwise apply:</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="idEE4DA010338D420A9DCDDCAF3632E9EB"><enum>(1)</enum><header display-inline="yes-display-inline">Go Zone benefits</header> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id1E2544C7274C462AB4F06BB0A1870D79"><enum>(A)</enum><text display-inline="yes-display-inline">Section 1400N (relating to tax benefits) <p> other than subsections (b), (d), (e), (i), (j), (m), and (o) thereof.</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idCE5DCE95B18241D881E767F4572D4F47"><enum>(B)</enum><text display-inline="yes-display-inline">Section 1400O (relating to education tax <p> benefits).</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id01B18E4FD02E49CDAF56267D1860C05D"><enum>(C)</enum><text display-inline="yes-display-inline">Section 1400P (relating to housing tax <p> benefits).</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC8B641251D804C0984E510AA915DDCF1"><enum>(D)</enum><text display-inline="yes-display-inline">Section 1400Q (relating to special rules <p> for use of retirement funds).</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id98E69D218442450BA58CC8EB6AFF5B85"><enum>(E)</enum><text display-inline="yes-display-inline">Section 1400R(a) (relating to employee <p> retention credit for employers).</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id8B30D5435804467AA04D069EE4E74120"><enum>(F)</enum><text display-inline="yes-display-inline">Section 1400S (relating to additional tax <p> relief) other than subsection (d) thereof.</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3A27D59A38CD42DFAEA6ECE865B396F8"><enum>(G)</enum><text display-inline="yes-display-inline">Section 1400T (relating to special rules <p> for mortgage revenue bonds).</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA3D214DF54D541908EAC7BA51599437B"><enum>(2)</enum><header display-inline="yes-display-inline">Other benefits included in Katrina <p> Emergency Tax Relief Act of 2005</header><text display-inline="yes-display-inline">Sections 302, 303, 304, 401, and 405 of the <p> Katrina Emergency Tax Relief Act of 2005.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idF7B88A2936E440D0A0F1B4A8C122B695"><enum>(b)</enum><header display-inline="yes-display-inline">Midwestern disaster area</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="id5BB91640B16A4DD596F9B8E4F39A678F"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For purposes of this section and for <p> applying the substitutions described in subsections (d) and (e), the term <p> <term>Midwestern disaster area</term> means an area—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id8BAA8C78F23F4A86A00E72235B8C6A6B"><enum>(A)</enum><text display-inline="yes-display-inline">with respect to which a major disaster has <p> been declared by the President on or after May 20, 2008, and before August 1, <p> 2008, under section 401 of the Robert T. Stafford Disaster Relief and Emergency <p> Assistance Act by reason of severe storms, tornados, or flooding occurring in <p> any of the States of Arkansas, Illinois, Indiana, Iowa, Kansas, Michigan, <p> Minnesota, Missouri, Nebraska, and Wisconsin, and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id47DAE51250864EBB9F34EE79A9D47731"><enum>(B)</enum><text display-inline="yes-display-inline">determined by the President to warrant <p> individual or individual and public assistance from the Federal Government <p> under such Act with respect to damages attributable to such severe storms, <p> tornados, or flooding.</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id01F90D4A70614E0A8F63ED596B4875BA"><enum>(2)</enum><header display-inline="yes-display-inline">Certain benefits available to areas <p> eligible only for public assistance</header><text display-inline="yes-display-inline">For purposes of applying this section to <p> benefits under the following provisions, paragraph (1) shall be applied without <p> regard to subparagraph (B):</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="idD7579DAEB80C41D78880CDDD78F0A82C"><enum>(A)</enum><text display-inline="yes-display-inline">Sections 1400Q, 1400S(b), and 1400S(d) of <p> the Internal Revenue Code of 1986.</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idECC595468CEC4AE3A7348D874DC7BBE4"><enum>(B)</enum><text display-inline="yes-display-inline">Sections 302, 401, and 405 of the Katrina <p> Emergency Tax Relief Act of 2005.</text> <p> </subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idE135FCFE82F042EF805F7774CB7CD15D"><enum>(c)</enum><header display-inline="yes-display-inline">References</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="idCA335F99F40E4323A288BA5F4668580A"><enum>(1)</enum><header display-inline="yes-display-inline">Area</header><text display-inline="yes-display-inline">Any reference in such provisions to the <p> Hurricane Katrina disaster area or the Gulf Opportunity Zone shall be treated <p> as a reference to any Midwestern disaster area and any reference to the <p> Hurricane Katrina disaster area or the Gulf Opportunity Zone within a State <p> shall be treated as a reference to all Midwestern disaster areas within the <p> State.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9688785658644D07A4FFCF596E4E7F70"><enum>(2)</enum><header display-inline="yes-display-inline">Items attributable to <p> disaster</header><text display-inline="yes-display-inline">Any reference in <p> such provisions to any loss, damage, or other item attributable to Hurricane <p> Katrina shall be treated as a reference to any loss, damage, or other item <p> attributable to the severe storms, tornados, or flooding giving rise to any <p> Presidential declaration described in subsection (b)(1)(A).</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9C451E35546E483DAEDE8C9847FD04A4"><enum>(3)</enum><header display-inline="yes-display-inline">Applicable disaster date</header><text display-inline="yes-display-inline">For purposes of applying the substitutions <p> described in subsections (d) and (e), the term <term>applicable disaster <p> date</term> means, with respect to any Midwestern disaster area, the date on <p> which the severe storms, tornados, or flooding giving rise to the Presidential <p> declaration described in subsection (b)(1)(A) occurred.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id29214DAF48A649D49F4896B8886528D2"><enum>(d)</enum><header display-inline="yes-display-inline">Modifications to 1986 Code</header><text display-inline="yes-display-inline">The following provisions of the Internal <p> Revenue Code of 1986 shall be applied with the following modifications:</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="id3D1E60993EE049C2A93C171DF7ED1F9B"><enum>(1)</enum><header display-inline="yes-display-inline">Tax-exempt bond financing</header><text display-inline="yes-display-inline">Section 1400N(a)—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id0DB0F59D0B154A11966E650EBC120115"><enum>(A)</enum><text display-inline="yes-display-inline">by substituting <quote>qualified Midwestern <p> disaster area bond</quote> for <quote>qualified Gulf Opportunity Zone <p> Bond</quote> each place it appears, except that in determining whether a bond <p> is a qualified Midwestern disaster area bond—</text> <p> <clause commented="no" display-inline="no-display-inline" id="idBCAC3B352400458AB7E239803E3DBC74"><enum>(i)</enum><text display-inline="yes-display-inline">paragraph (2)(A)(i) shall be applied by <p> only treating costs as qualified project costs if—</text> <p> <subclause commented="no" display-inline="no-display-inline" id="idC50957927FE3424794868A2C77D23D93"><enum>(I)</enum><text display-inline="yes-display-inline">in the case of a project involving a <p> private business use (as defined in section 141(b)(6)), either the person using <p> the property suffered a loss in a trade or business attributable to the severe <p> storms, tornados, or flooding giving rise to any Presidential declaration <p> described in subsection (b)(1)(A) or is a person designated for purposes of <p> this section by the Governor of the State in which the project is located as a <p> person carrying on a trade or business replacing a trade or business with <p> respect to which another person suffered such a loss, and</text> <p> </subclause><subclause commented="no" display-inline="no-display-inline" id="idBFF9BBCFD3DC406E8E3DACE9D81D4A9A"><enum>(II)</enum><text display-inline="yes-display-inline">in the case of a project relating to public <p> utility property, the project involves repair or reconstruction of public <p> utility property damaged by such severe storms, tornados, or flooding, <p> and</text> <p> </subclause></clause><clause commented="no" display-inline="no-display-inline" id="idEB78E12D8347414F9BF6FDFADCF3B530"><enum>(ii)</enum><text display-inline="yes-display-inline">paragraph (2)(A)(ii) shall be applied by <p> treating an issue as a qualified mortgage issue only if 95 percent or more of <p> the net proceeds (as defined in section 150(a)(3)) of the issue are to be used <p> to provide financing for mortgagors who suffered damages to their principal <p> residences attributable to such severe storms, tornados, or flooding.</text> <p> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id472A54B4C70648C4A2CCE4567295A6C0"><enum>(B)</enum><text display-inline="yes-display-inline">by substituting <quote>any State in which a <p> Midwestern disaster area is located</quote> for <quote>the State of Alabama, <p> Louisiana, or Mississippi</quote> in paragraph (2)(B),</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id67FFA50705184FB687CCD40C5358177B"><enum>(C)</enum><text display-inline="yes-display-inline">by substituting <quote>designated for <p> purposes of this section (on the basis of providing assistance to areas in the <p> order in which such assistance is most needed)</quote> for <quote>designated <p> for purposes of this section</quote> in paragraph (2)(C),</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id2451CB72DCBC4944B776FB7B78AC020B"><enum>(D)</enum><text display-inline="yes-display-inline">by substituting <quote>January 1, <p> 2013</quote> for <quote>January 1, 2011</quote> in paragraph (2)(D),</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id525181FCD65548AF8A830A77262902E7"><enum>(E)</enum><text display-inline="yes-display-inline">in paragraph (3)(A)—</text> <p> <clause commented="no" display-inline="no-display-inline" id="idB8AF00463B5C4B3E93C35ED8A54490F5"><enum>(i)</enum><text display-inline="yes-display-inline">by substituting <quote>$1,000</quote> for <p> <quote>$2,500</quote>, and</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="id1704A66F7E93444DAA37CEDB4204F7B5"><enum>(ii)</enum><text display-inline="yes-display-inline">by substituting <quote>before the earliest <p> applicable disaster date for Midwestern disaster areas within the State</quote> <p> for <quote>before August 28, 2005</quote>,</text> <p> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idA367A991917C45CCB7030BDC1D086DC0"><enum>(F)</enum><text display-inline="yes-display-inline">by substituting <quote>qualified Midwestern <p> disaster area repair or construction</quote> for <quote>qualified GO Zone <p> repair or construction</quote> each place it appears,</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id11D01E2CF5BF4896AD3BF831DA580C06"><enum>(G)</enum><text display-inline="yes-display-inline">by substituting <quote>after the date of <p> the enactment of the <short-title>Heartland Disaster Tax <p> Relief Act of 2008</short-title> and before January 1, 2013</quote> for <p> <quote>after the date of the enactment of this paragraph and before January 1, <p> 2011</quote> in paragraph (7)(C), and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idFD3E47792D184E13A03C5D899BCEACBD"><enum>(H)</enum><text>by disregarding paragraph <p> (8) thereof.</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id90FF9B410D944C5D927C2939408BE3BB"><enum>(2)</enum><header display-inline="yes-display-inline">Low-income housing credit</header><text display-inline="yes-display-inline">Section 1400N(c)—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id0714BDF5594B4E89935588568532BC6C"><enum>(A)</enum><text display-inline="yes-display-inline">only with respect to calendar years 2008, <p> 2009, and 2010,</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3702D36506CD4849BBF565CDAE0FF4FA"><enum>(B)</enum><text display-inline="yes-display-inline">by substituting <quote>Disaster Recovery <p> Assistance housing amount</quote> for <quote>Gulf Opportunity housing <p> amount</quote> each place it appears,</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC2C0191184604D22AC1D647D6BF02933"><enum>(C)</enum><text display-inline="yes-display-inline">in paragraph (1)(B)—</text> <p> <clause commented="no" display-inline="no-display-inline" id="id287D2E1B0AE54DE09BF1E2A22991BCE6"><enum>(i)</enum><text display-inline="yes-display-inline">by substituting <quote>$8.00</quote> for <p> <quote>$18.00</quote>, and</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="id644B143DDCCC43B78949E0C2EDDED4C1"><enum>(ii)</enum><text display-inline="yes-display-inline">by substituting <quote>before the earliest <p> applicable disaster date for Midwestern disaster areas within the State</quote> <p> for <quote>before August 28, 2005</quote>, and</text> <p> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id417FC66DF849452CB50F03194A2A74C7"><enum>(D)</enum><text display-inline="yes-display-inline">determined without regard to paragraphs <p> (2), (3), (4), (5), and (6) thereof.</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id202E886963444E3F9F7ACB8542138E37"><enum>(3)</enum><header display-inline="yes-display-inline">Expensing for certain demolition and <p> clean-up costs</header><text display-inline="yes-display-inline">Section <p> 1400N(f)—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="idFBE7D8646E0F409BB76A52CA74CA76DA"><enum>(A)</enum><text display-inline="yes-display-inline">by substituting <quote>qualified Disaster <p> Recovery Assistance clean-up cost</quote> for <quote>qualified Gulf Opportunity <p> Zone clean-up cost</quote> each place it appears,</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC89E2F3F89FB42349225056731FD6A1A"><enum>(B)</enum><text display-inline="yes-display-inline">by substituting <quote>beginning on the <p> applicable disaster date and ending on December 31, 2010</quote> for <p> <quote>beginning on August 28, 2005, and ending on December 31, 2007</quote> in <p> paragraph (2), and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD449C8470D0B46C78A09063EB4DE84F7"><enum>(C)</enum><text display-inline="yes-display-inline">by treating costs as qualified Disaster <p> Recovery Assistance clean-up costs only if the removal of debris or demolition <p> of any structure was necessary due to damage attributable to the severe storms, <p> tornados, or flooding giving rise to any Presidential declaration described in <p> subsection (b)(1)(A).</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idBF3321063BEB4D91A114114428C022E2"><enum>(4)</enum><header display-inline="yes-display-inline">Extension of expensing for environmental <p> remediation costs</header><text display-inline="yes-display-inline">Section <p> 1400N(g)—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id8A63254732C940F7A66528731960CB8F"><enum>(A)</enum><text display-inline="yes-display-inline">by substituting <quote>the applicable <p> disaster date</quote> for <quote>August 28, 2005</quote> each place it <p> appears,</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id5DE634463DF2424FB7F3D7C7D264B02F"><enum>(B)</enum><text display-inline="yes-display-inline">by substituting <quote>January 1, <p> 2011</quote> for <quote>January 1, 2008</quote> in paragraph (1),</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD2D44E0163124E8D952BEE5A735BFD6A"><enum>(C)</enum><text display-inline="yes-display-inline">by substituting <quote>December 31, <p> 2010</quote> for <quote>December 31, 2007</quote> in paragraph (1), and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB1667EE721EB4069B347F351E7DD1BAF"><enum>(D)</enum><text display-inline="yes-display-inline">by treating a site as a qualified <p> contaminated site only if the release (or threat of release) or disposal of a <p> hazardous substance at the site was attributable to the severe storms, <p> tornados, or flooding giving rise to any Presidential declaration described in <p> subsection (b)(1)(A).</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id640CDAB1F1DF44FBAFFF2C67F80D4F55"><enum>(5)</enum><header display-inline="yes-display-inline">Increase in rehabilitation <p> credit</header><text display-inline="yes-display-inline">Section 1400N(h), as <p> amended by this Act—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id45BFBB5DA4164CF8A1AC51386AB4F658"><enum>(A)</enum><text display-inline="yes-display-inline">by substituting <quote>the applicable <p> disaster date</quote> for <quote>August 28, 2005</quote>,</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id0D8CE178AA9B47B69B9FE6DC04BD10D3"><enum>(B)</enum><text display-inline="yes-display-inline">by substituting <quote>December 31, <p> 2011</quote> for <quote>December 31, 2009</quote> in paragraph (1), and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id244787C8C5FB440589FDE5FAF0114E17"><enum>(C)</enum><text display-inline="yes-display-inline">by only applying such subsection to <p> qualified rehabilitation expenditures with respect to any building or structure <p> which was damaged or destroyed as a result of the severe storms, tornados, or <p> flooding giving rise to any Presidential declaration described in subsection <p> (b)(1)(A).</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id914DF3A3070042D580861BF0ACD01713"><enum>(6)</enum><header display-inline="yes-display-inline">Treatment of net operating losses <p> attributable to disaster losses</header><text display-inline="yes-display-inline">Section 1400N(k)—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id36FE0F4A61214598B85C433075018B4D"><enum>(A)</enum><text display-inline="yes-display-inline">by substituting <quote>qualified Disaster <p> Recovery Assistance loss</quote> for <quote>qualified Gulf Opportunity Zone <p> loss</quote> each place it appears,</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id75CA909A63544EC3B7723794EA07FEC8"><enum>(B)</enum><text display-inline="yes-display-inline">by substituting <quote>after the day before <p> the applicable disaster date, and before January 1, 2011</quote> for <p> <quote>after August 27, 2005, and before January 1, 2008</quote> each place it <p> appears,</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idAB1584B194E3425183508D6A3B6FF217"><enum>(C)</enum><text display-inline="yes-display-inline">by substituting <quote>the applicable <p> disaster date</quote> for <quote>August 28, 2005</quote> in paragraph <p> (2)(B)(ii)(I),</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idBFD7FCDDAB6D4BDBB2E3972821573660"><enum>(D)</enum><text display-inline="yes-display-inline">by substituting <quote>qualified Disaster <p> Recovery Assistance property</quote> for <quote>qualified Gulf Opportunity Zone <p> property</quote> in paragraph (2)(B)(iv), and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id058FB22F961E4C94BC151752FC52469F"><enum>(E)</enum><text display-inline="yes-display-inline">by substituting <quote>qualified Disaster <p> Recovery Assistance casualty loss</quote> for <quote>qualified Gulf Opportunity <p> Zone casualty loss</quote> each place it appears.</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idB0D5F4E6779B4F2BA2A9DAAF45EABE53"><enum>(7)</enum><header display-inline="yes-display-inline">Credit to holders of tax credit <p> bonds</header><text display-inline="yes-display-inline">Section <p> 1400N(l)—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="idFB1532DB34EF4A3DAAED83B71922BD10"><enum>(A)</enum><text display-inline="yes-display-inline">by substituting <quote>Midwestern tax <p> credit bond</quote> for <quote>Gulf tax credit bond</quote> each place it <p> appears,</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id10D2AC6F9ED74EECAF2B331A66B5D9EE"><enum>(B)</enum><text display-inline="yes-display-inline">by substituting <quote>any State in which a <p> Midwestern disaster area is located or any instrumentality of the State</quote> <p> for <quote>the State of Alabama, Louisiana, or Mississippi</quote> in paragraph <p> (4)(A)(i),</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC87DAA0976684654B7D7127CABF2EB67"><enum>(C)</enum><text display-inline="yes-display-inline">by substituting <quote>after December 31, <p> 2008 and before January 1, 2010</quote> for <quote>after December 31, 2005, and <p> before January 1, 2007</quote>,</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id304851E4CAE34B9C9A1ED21788E940EA"><enum>(D)</enum><text display-inline="yes-display-inline">by substituting <quote>shall not exceed <p> $100,000,000 for any State with an aggregate population located in all <p> Midwestern disaster areas within the State of at least 2,000,000, $50,000,000 <p> for any State with an aggregate population located in all Midwestern disaster <p> areas within the State of at least 1,000,000 but less than 2,000,000, and zero <p> for any other State. The population of a State within any area shall be <p> determined on the basis of the most recent census estimate of resident <p> population released by the Bureau of Census before the earliest applicable <p> disaster date for Midwestern disaster areas within the State.</quote> for <p> <quote>shall not exceed</quote> and all that follows in paragraph (4)(C), <p> and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idA314A1C75AD345A987F54B64BAF8196A"><enum>(E)</enum><text display-inline="yes-display-inline">by substituting <quote>the earliest <p> applicable disaster date for Midwestern disaster areas within the State</quote> <p> for <quote>August 28, 2005</quote> in paragraph (5)(A).</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4D5F2AFE9DD24C2C9E1A9C4BBF1B8337"><enum>(8)</enum><header display-inline="yes-display-inline">Education tax benefits</header><text display-inline="yes-display-inline">Section 1400O, by substituting <quote>2008 <p> or 2009</quote> for <quote>2005 or 2006</quote>.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id7523FDC354B348E49B3F6CDFBB3D745F"><enum>(9)</enum><header display-inline="yes-display-inline">Housing tax benefits</header><text display-inline="yes-display-inline">Section 1400P, by substituting <quote>the <p> applicable disaster date</quote> for <quote>August 28, 2005</quote> in <p> subsection (c)(1).</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id037D7C3A13C8419ABA198F2616921BDC"><enum>(10)</enum><header display-inline="yes-display-inline">Special rules for use of retirement <p> funds</header><text display-inline="yes-display-inline">Section 1400Q—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="idA0BD0311A77B4F3AB6AC9EC287F6BAF8"><enum>(A)</enum><text display-inline="yes-display-inline">by substituting <quote>qualified Disaster <p> Recovery Assistance distribution</quote> for <quote>qualified hurricane <p> distribution</quote> each place it appears,</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB882C650314F44CB9EC2A3089DC5EFA7"><enum>(B)</enum><text display-inline="yes-display-inline">by substituting <quote>on or after the <p> applicable disaster date and before January 1, 2010</quote> for <quote>on or <p> after August 25, 2005, and before January 1, 2007</quote> in subsection <p> (a)(4)(A)(i),</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idEF75E5E8336A4AAB92532EB5FF65F037"><enum>(C)</enum><text display-inline="yes-display-inline">by substituting <quote>the applicable <p> disaster date</quote> for <quote>August 28, 2005</quote> in subsections <p> (a)(4)(A)(i) and (c)(3)(B),</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id82C3575699934140BE21766E8A1AF5E1"><enum>(D)</enum><text display-inline="yes-display-inline">by disregarding clauses (ii) and (iii) of <p> subsection (a)(4)(A) thereof,</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC545411F689B45DDBB5B3FD8B16A3B3C"><enum>(E)</enum><text display-inline="yes-display-inline">by substituting <quote>qualified storm <p> damage distribution</quote> for <quote>qualified Katrina distribution</quote> <p> each place it appears,</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC134557EA9C34B54B016B197C65F84DA"><enum>(F)</enum><text display-inline="yes-display-inline">by substituting <quote>after the date which <p> is 6 months before the applicable disaster date and before the date which is <p> the day after the applicable disaster date</quote> for <quote>after February <p> 28, 2005, and before August 29, 2005</quote> in subsection <p> (b)(2)(B)(ii),</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id474993CAAD33432FA9193BF709171D2D"><enum>(G)</enum><text display-inline="yes-display-inline">by substituting <quote>the Midwestern <p> disaster area, but not so purchased or constructed on account of severe storms, <p> tornados, or flooding giving rise to the designation of the area as a disaster <p> area</quote> for <quote>the Hurricane Katrina disaster area, but not so <p> purchased or constructed on account of Hurricane Katrina</quote> in subsection <p> (b)(2)(B)(iii),</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idAE94EA7EAD3D403B92855705C3D5DA7B"><enum>(H)</enum><text display-inline="yes-display-inline">by substituting <quote>beginning on the <p> applicable disaster date and ending on the date which is 5 months after the <p> date of the enactment of the <short-title>Heartland <p> Disaster Tax Relief Act of 2008</short-title></quote> for <quote>beginning on <p> August 25, 2005, and ending on February 28, 2006</quote> in subsection <p> (b)(3)(A),</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id00F4ED38B1344DDEAEBD5E3E2B5FCAE5"><enum>(I)</enum><text display-inline="yes-display-inline">by substituting <quote>qualified storm <p> damage individual</quote> for <quote>qualified Hurricane Katrina <p> individual</quote> each place it appears,</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id4547478BD21E44F1AA33481F182EFBB5"><enum>(J)</enum><text display-inline="yes-display-inline">by substituting <quote>December 31, <p> 2009</quote> for <quote>December 31, 2006</quote> in subsection <p> (c)(2)(A),</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF6998E8873A340FA9B027766A24F7FF6"><enum>(K)</enum><text display-inline="yes-display-inline">by disregarding subparagraphs (C) and (D) <p> of subsection (c)(3) thereof,</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id1B851684CDCB45B78BF7EF45DF94A4C1"><enum>(L)</enum><text display-inline="yes-display-inline">by substituting <quote>beginning on the <p> date of the enactment of the <short-title>Heartland <p> Disaster Tax Relief Act of 2008</short-title> and ending on December 31, <p> 2009</quote> for <quote>beginning on September 24, 2005, and ending on December <p> 31, 2006</quote> in subsection (c)(4)(A)(i),</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id633C92F00FF1452D919C342C813B5B92"><enum>(M)</enum><text display-inline="yes-display-inline">by substituting <quote>the applicable <p> disaster date</quote> for <quote>August 25, 2005</quote> in subsection <p> (c)(4)(A)(ii), and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6FBE71DE062A4FF9B7FD9A1F7E8E1AC5"><enum>(N)</enum><text display-inline="yes-display-inline">by substituting <quote>January 1, <p> 2010</quote> for <quote>January 1, 2007</quote> in subsection <p> (d)(2)(A)(ii).</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idEAD761550B4B4B32AFB3A02C799A98EA"><enum>(11)</enum><header display-inline="yes-display-inline">Employee retention credit for employers <p> affected by severe storms, tornados, and flooding</header><text display-inline="yes-display-inline">Section 1400R(a)—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="idBFEC8300C08046D6974E52F820C5C630"><enum>(A)</enum><text display-inline="yes-display-inline">by substituting <quote>the applicable <p> disaster date</quote> for <quote>August 28, 2005</quote> each place it <p> appears,</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id282E66BB70B14138856D4FFA689F88B8"><enum>(B)</enum><text display-inline="yes-display-inline">by substituting <quote>January 1, <p> 2009</quote> for <quote>January 1, 2006</quote> both places it appears, <p> and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id27167AFA5AA5446EA35C139D322AC75D"><enum>(C)</enum><text display-inline="yes-display-inline">only with respect to eligible employers who <p> employed an average of not more than 200 employees on business days during the <p> taxable year before the applicable disaster date.</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id79A5E52D7A9148A9ADD79676C362E6CB"><enum>(12)</enum><header display-inline="yes-display-inline">Temporary suspension of limitations on <p> charitable contributions</header><text display-inline="yes-display-inline">Section 1400S(a), by substituting the <p> following paragraph for paragraph (4) thereof:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id58BDF9D53D3345C0811DE68E9814550D" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" display-inline="no-display-inline" id="idF3FEC96D6DA24A3D83465F7494ECC7FD"><enum>(4)</enum><header display-inline="yes-display-inline">Qualified contributions</header> <p> <subparagraph commented="no" display-inline="no-display-inline" id="idAB2DAE4A85EA4BF98DE2433DD8117E38"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <p> <quote>qualified contribution</quote> means any charitable contribution (as <p> defined in section 170(c)) if—</text> <p> <clause commented="no" display-inline="no-display-inline" id="id1ADFD92477984545899D3B94E32DFFB6"><enum>(i)</enum><text display-inline="yes-display-inline">such contribution—</text> <p> <subclause commented="no" display-inline="no-display-inline" id="id00E6DCABF50043B1B341627DCD95A8DA"><enum>(I)</enum><text display-inline="yes-display-inline">is paid during the period beginning on the <p> earliest applicable disaster date for all States and ending on December 31, <p> 2008, in cash to an organization described in section 170(b)(1)(A), and</text> <p> </subclause><subclause commented="no" display-inline="no-display-inline" id="idA082E691C47649BFA4F75ADAEF8E3D43"><enum>(II)</enum><text display-inline="yes-display-inline">is made for relief efforts in 1 or more <p> Midwestern disaster areas,</text> <p> </subclause></clause><clause commented="no" display-inline="no-display-inline" id="id88AD4BDF795E495686D7AC1EA687D0DC"><enum>(ii)</enum><text display-inline="yes-display-inline">the taxpayer obtains from such organization <p> contemporaneous written acknowledgment (within the meaning of section <p> 170(f)(8)) that such contribution was used (or is to be used) for relief <p> efforts in 1 or more Midwestern disaster areas, and</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="idD787B52B784E4F0F83FAE48E2592C66E"><enum>(iii)</enum><text display-inline="yes-display-inline">the taxpayer has elected the application of <p> this subsection with respect to such contribution.</text> <p> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idCF69ED3E2D144B59B1F69DF4ACCFE8CD"><enum>(B)</enum><header display-inline="yes-display-inline">Exception</header><text display-inline="yes-display-inline">Such term shall not include a contribution <p> by a donor if the contribution is—</text> <p> <clause commented="no" display-inline="no-display-inline" id="id80D5F8BB7DF24C92B45B0D30B1A96A7C"><enum>(i)</enum><text display-inline="yes-display-inline">to an organization described in section <p> 509(a)(3), or</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="id3EE5D29CB63D45E4BA897CBE10953827"><enum>(ii)</enum><text display-inline="yes-display-inline">for establishment of a new, or maintenance <p> of an existing, donor advised fund (as defined in section 4966(d)(2)).</text> <p> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id920AFBA13E68425AAEEA941C3DD11F21"><enum>(C)</enum><header display-inline="yes-display-inline">Application of election to partnerships and <p> S corporations</header><text display-inline="yes-display-inline">In the case of <p> a partnership or S corporation, the election under subparagraph (A)(iii) shall <p> be made separately by each partner or <p> shareholder.</text> <p> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF3F17DF5F8044D1BB59BA6CC5EE42AA2"><enum>(13)</enum><header display-inline="yes-display-inline">Suspension of certain limitations on <p> personal casualty losses</header><text display-inline="yes-display-inline">Section 1400S(b)(1), by substituting <p> <quote>the applicable disaster date</quote> for <quote>August 25, <p> 2005</quote>.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF7FB05EF4CA149858D65C2822CE66CCF"><enum>(14)</enum><header display-inline="yes-display-inline">Special rule for determining earned <p> income</header><text display-inline="yes-display-inline">Section <p> 1400S(d)—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id15031880CC5541EF8FA66AD9B9E1856B"><enum>(A)</enum><text display-inline="yes-display-inline">by treating an individual as a qualified <p> individual if such individual's principal place of abode on the applicable <p> disaster date was located in a Midwestern disaster area,</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB06377DC474B4044ADADEA6E37533EAA"><enum>(B)</enum><text display-inline="yes-display-inline">by treating the applicable disaster date <p> with respect to any such individual as the applicable date for purposes of such <p> subsection, and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id5F9271EAAFB44580BB1617BDB4CE1930"><enum>(C)</enum><text display-inline="yes-display-inline">by treating an area as described in <p> paragraph (2)(B)(ii) thereof if the area is a Midwestern disaster area only by <p> reason of subsection (b)(2) of this section (relating to areas eligible only <p> for public assistance).</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idB136147DEEFD40E392D207DDD372AF7D"><enum>(15)</enum><header display-inline="yes-display-inline">Adjustments regarding taxpayer and <p> dependency status</header><text display-inline="yes-display-inline">Section <p> 1400S(e), by substituting <quote>2008 or 2009</quote> for <quote>2005 or <p> 2006</quote>.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id170FDD6BE10E4DD799AE6A603E0D0A59"><enum>(e)</enum><header display-inline="yes-display-inline">Modifications to Katrina Emergency Tax <p> Relief Act of 2005</header><text display-inline="yes-display-inline">The <p> following provisions of the Katrina Emergency Tax Relief Act of 2005 shall be <p> applied with the following modifications:</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="id741857ACF06A41CB8DB85E7C783281C5"><enum>(1)</enum><header display-inline="yes-display-inline">Additional exemption for housing displaced <p> individual</header><text display-inline="yes-display-inline">Section <p> 302—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="idE36B610BC8CE42C38D9C1A2116129554"><enum>(A)</enum><text display-inline="yes-display-inline">by substituting <quote>2008 or 2009</quote> <p> for <quote>2005 or 2006</quote> in subsection (a) thereof,</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF3B09805F1B94FC8AFB583D1412F2334"><enum>(B)</enum><text display-inline="yes-display-inline">by substituting <quote>Midwestern displaced <p> individual</quote> for <quote>Hurricane Katrina displaced individual</quote> <p> each place it appears, and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id429F7862062A4869B1C45458447EB22F"><enum>(C)</enum><text display-inline="yes-display-inline">by treating an area as a core disaster area <p> for purposes of applying subsection (c) thereof if the area is a Midwestern <p> disaster area without regard to subsection (b)(2) of this section (relating to <p> areas eligible only for public assistance).</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id19A1D36A2C384396A8602F42974AB665"><enum>(2)</enum><header display-inline="yes-display-inline">Increase in standard mileage <p> rate</header><text display-inline="yes-display-inline">Section 303, by <p> substituting <quote>beginning on the applicable disaster date and ending on <p> December 31, 2008</quote> for <quote>beginning on August 25, 2005, and ending <p> on December 31, 2006</quote>.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idBF85A7124F8D4CB487EE309B2E53F9B4"><enum>(3)</enum><header display-inline="yes-display-inline">Mileage reimbursements for charitable <p> volunteers</header><text display-inline="yes-display-inline">Section <p> 304—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id12A1A1EFBF16416DA693FA97F8AB2B88"><enum>(A)</enum><text display-inline="yes-display-inline">by substituting <quote>beginning on the <p> applicable disaster date and ending on December 31, 2008</quote> for <p> <quote>beginning on August 25, 2005, and ending on December 31, 2006</quote> in <p> subsection (a), and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6623AC78DC7545D9BAFD653C3F54A27F"><enum>(B)</enum><text display-inline="yes-display-inline">by substituting <quote>the applicable <p> disaster date</quote> for <quote>August 25, 2005</quote> in subsection <p> (a).</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idDE11CC21DD8D4248A60A6C5967E412F3"><enum>(4)</enum><header display-inline="yes-display-inline">Exclusion of certain cancellation of <p> indebtedness income</header><text display-inline="yes-display-inline">Section <p> 401—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="idFE686E6E2C534DF788E7E11DCC49CB74"><enum>(A)</enum><text display-inline="yes-display-inline">by treating an individual whose principal <p> place of abode on the applicable disaster date was in a Midwestern disaster <p> area (determined without regard to subsection (b)(2) of this section) as an <p> individual described in subsection (b)(1) thereof, and by treating an <p> individual whose principal place of abode on the applicable disaster date was <p> in a Midwestern disaster area solely by reason of subsection (b)(2) of this <p> section as an individual described in subsection (b)(2) thereof,</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id8527EAC10CDF48BFACB0BBB9705209F8"><enum>(B)</enum><text display-inline="yes-display-inline">by substituting <quote>the applicable <p> disaster date</quote> for <quote>August 28, 2005</quote> both places it <p> appears, and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idA248515256B54A0BAAB32C4A5FE4DC8A"><enum>(C)</enum><text display-inline="yes-display-inline">by substituting <quote>January 1, <p> 2010</quote> for <quote>January 1, 2007</quote> in subsection (e).</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4E17FE2C572C4E249DF627B436BF9AC8"><enum>(5)</enum><header display-inline="yes-display-inline">Extension of replacement period for <p> nonrecognition of gain</header><text display-inline="yes-display-inline">Section 405, by substituting <quote>on or <p> after the applicable disaster date</quote> for <quote>on or after August 25, <p> 2005</quote>.</text> <p> </paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id1959E643D48B4F64BBD3B66BAA44C08E" section-type="subsequent-section"><enum>703.</enum><header display-inline="yes-display-inline">Reporting requirements relating to disaster <p> relief contributions</header> <p> <subsection commented="no" display-inline="no-display-inline" id="id880AE79FFEE84E1D82D00823F3FC1AFC"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 6033(b) (relating to returns of <p> certain organizations described in section 501(c)(3)) is amended by striking <p> <quote>and</quote> at the end of paragraph (13), by redesignating paragraph <p> (14) as paragraph (15), and by adding after paragraph (13) the following new <p> paragraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id40BE19A954FC44208FAC0E2DB1DE9CC5" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" display-inline="no-display-inline" id="idFA9003D57E0D40B983DEF58CCE5AECEA"><enum>(14)</enum><text display-inline="yes-display-inline">such information as the Secretary may <p> require with respect to disaster relief activities, including the amount and <p> use of qualified contributions to which section 1400S(a) applies, <p> and</text> <p> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="id3E57AF44D4EF4E8E8D1068BCB9DD3570"><enum>(b)</enum><header display-inline="yes-display-inline">Effective <p> date</header><text display-inline="yes-display-inline">The amendments made by <p> this section shall apply to returns the due date for which (determined without <p> regard to any extension) occurs after December 31, 2008.</text> <p> </subsection></section><section commented="no" display-inline="no-display-inline" id="idE5BDA0B759F74BFBA9F425CB84AFC4C1" section-type="subsequent-section"><enum>704.</enum><header display-inline="yes-display-inline">Temporary tax-exempt bond financing and <p> low-income housing tax relief for areas damaged by Hurricane Ike</header> <p> <subsection commented="no" display-inline="no-display-inline" id="id6F78A3DFE2D841F8BFBCB72C1F36A3D4"><enum>(a)</enum><header display-inline="yes-display-inline">Tax-exempt bond financing</header><text display-inline="yes-display-inline">Section 1400N(a) of the Internal Revenue <p> Code of 1986 shall apply to any Hurricane Ike disaster area in addition to any <p> other area referenced in such section, but with the following <p> modifications:</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="id5D8651E6006444D7AD96F9A6BBBA18D7"><enum>(1)</enum><text display-inline="yes-display-inline">By substituting <quote>qualified Hurricane <p> Ike disaster area bond</quote> for <quote>qualified Gulf Opportunity Zone <p> Bond</quote> each place it appears, except that in determining whether a bond <p> is a qualified Hurricane Ike disaster area bond—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id3CA79CC1EB564F56A16C5088044C6271"><enum>(A)</enum><text display-inline="yes-display-inline">paragraph (2)(A)(i) shall be applied by <p> only treating costs as qualified project costs if—</text> <p> <clause commented="no" display-inline="no-display-inline" id="id7532EF255C2A479483B45F54AC04FE97"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of a project involving a <p> private business use (as defined in section 141(b)(6)), either the person using <p> the property suffered a loss in a trade or business attributable to Hurricane <p> Ike or is a person designated for purposes of this section by the Governor of <p> the State in which the project is located as a person carrying on a trade or <p> business replacing a trade or business with respect to which another person <p> suffered such a loss, and</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="idFCE6B500AA764C52978E297678D8B0B9"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of a project relating to public <p> utility property, the project involves repair or reconstruction of public <p> utility property damaged by Hurricane Ike, and</text> <p> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB93848807E1641888CF2DA5EA92BF655"><enum>(B)</enum><text display-inline="yes-display-inline">paragraph (2)(A)(ii) shall be applied by <p> treating an issue as a qualified mortgage issue only if 95 percent or more of <p> the net proceeds (as defined in section 150(a)(3)) of the issue are to be used <p> to provide financing for mortgagors who suffered damages to their principal <p> residences attributable to Hurricane Ike.</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idDC4520BD55064C4386CD4E1A390C4EF9"><enum>(2)</enum><text display-inline="yes-display-inline">By substituting <quote>any State in which <p> any Hurricane Ike disaster area is located</quote> for <quote>the State of <p> Alabama, Louisiana, or Mississippi</quote> in paragraph (2)(B).</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idADF26D41F8D5424FAAFF96AC54CDF0B8"><enum>(3)</enum><text display-inline="yes-display-inline">By substituting <quote>designated for <p> purposes of this section (on the basis of providing assistance to areas in the <p> order in which such assistance is most needed)</quote> for <quote>designated <p> for purposes of this section</quote> in paragraph (2)(C).</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id26741D3F30F04061A932C6655ACE55CD"><enum>(4)</enum><text display-inline="yes-display-inline">By substituting <quote>January 1, <p> 2013</quote> for <quote>January 1, 2011</quote> in paragraph (2)(D).</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5B89E9684A774F1EB706B2AABA95348C"><enum>(5)</enum><text display-inline="yes-display-inline">By substituting the following for <p> subparagraph (A) of paragraph (3):</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id9D111ACB1A9D446FB49543EE0BF4D4CC" reported-display-style="italic" style="OLC"> <p> <subparagraph id="IDbf64aa61ec724f4c89e4d74619f6644c"><enum>(A)</enum><header>Aggregate amount <p> designated</header><text>The maximum aggregate face amount of bonds which may <p> be designated under this subsection with respect to any State shall not exceed <p> the product of $2,000 multiplied by the portion of the State population which <p> is in—</text> <p> <clause id="idCB773F83E69C4ECCAA89D01848F9A573"><enum>(i)</enum><text>in the case of Texas, the <p> counties of Brazoria, Chambers, Galveston, Jefferson, and Orange, and</text> <p> </clause><clause id="idD62CF0CAA77E4E678855DEFA3AF96D3C"><enum>(ii)</enum><text>in the case of <p> Louisiana, the parishes of Calcasieu and Cameron,</text> <p> </clause><continuation-text continuation-text-level="subparagraph">(as determined on the basis of the most <p> recent census estimate of resident population released by the Bureau of Census <p> before September 13, <p> 2008).</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id867ED2F4D5D14342A3F5D539698287A6"><enum>(6)</enum><text display-inline="yes-display-inline">By substituting <quote>qualified Hurricane <p> Ike disaster area repair or construction</quote> for <quote>qualified GO Zone <p> repair or construction</quote> each place it appears.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5ECA01E533DE4555B0118CE3A6B72E13"><enum>(7)</enum><text display-inline="yes-display-inline">By substituting <quote>after the date of <p> the enactment of the <short-title>Heartland Disaster Tax <p> Relief Act of 2008</short-title> and before January 1, 2013</quote> for <p> <quote>after the date of the enactment of this paragraph and before January 1, <p> 2011</quote> in paragraph (7)(C).</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA2EA0E3423374A6ABD573EAD5C186C7E"><enum>(8)</enum><text>By disregarding paragraph <p> (8) thereof.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idD6DB164B91F24EA19BD313F6AFDB8703"><enum>(9)</enum><text>By substituting <p> <quote>any Hurricane Ike disaster area</quote> for <quote>the Gulf Opportunity <p> Zone</quote> each place it appears.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idC51D74CDDB324ADDBC8D8ED94A8AF83B"><enum>(b)</enum><header display-inline="yes-display-inline">Low-income housing credit</header><text display-inline="yes-display-inline">Section 1400N(c) of the Internal Revenue <p> Code of 1986 shall apply to any Hurricane Ike disaster area in addition to any <p> other area referenced in such section, but with the following <p> modifications:</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="id6BCD96AE819D4639AD16A252F6909257"><enum>(1)</enum><text display-inline="yes-display-inline">Only with respect to calendar years 2008, <p> 2009, and 2010.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id157D3C0C6DA6419A996CD52C3777ADF3"><enum>(2)</enum><text>By substituting <p> <quote>any Hurricane Ike disaster area</quote> for <quote>the Gulf Opportunity <p> Zone</quote> each place it appears.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id858C903F428D4C65A427BA0718304F48"><enum>(3)</enum><text display-inline="yes-display-inline">By substituting <quote>Hurricane Ike <p> Recovery Assistance housing amount</quote> for <quote>Gulf Opportunity housing <p> amount</quote> each place it appears.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idACE2D318F4834B028413538A5CAC096F"><enum>(4)</enum><text display-inline="yes-display-inline">By substituting the following for <p> subparagraph (B) of paragraph (1):</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idA71F2B05BCDC488BBE0705F34D7D69E0" reported-display-style="italic" style="OLC"> <p> <subparagraph id="ID6b036e69d590478f8bef311f19ebaae2"><enum>(B)</enum><header>Hurricane Ike housing <p> amount</header><text>For purposes of subparagraph (A), the term <p> <quote>Hurricane Ike housing amount</quote> means, for any calendar year, the <p> amount equal to the product of $16.00 multiplied by the portion of the State <p> population which is in—</text> <p> <clause id="id757BDA47639944C8A21EC24D5EF8516F"><enum>(i)</enum><text>in the case of Texas, the <p> counties of Brazoria, Chambers, Galveston, Jefferson, and Orange, and</text> <p> </clause><clause id="id2BC87F990C68487AADCD72999B2EB8D4"><enum>(ii)</enum><text>in the case of <p> Louisiana, the parishes of Calcasieu and Cameron,</text> <p> </clause><continuation-text continuation-text-level="subparagraph">(as determined on the basis of the most <p> recent census estimate of resident population released by the Bureau of Census <p> before September 13, <p> 2008).</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4CB6125BEE43493787FBD01132F4F5BA"><enum>(5)</enum><text display-inline="yes-display-inline">Determined without regard to paragraphs <p> (2), (3), (4), (5), and (6) thereof.</text> <p> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id9B41F83453AE429E8FA156EA0CC5CB6C"><enum>(c)</enum><header display-inline="yes-display-inline">Hurricane Ike disaster area</header><text display-inline="yes-display-inline">For purposes of this section and for <p> applying the substitutions described in subsections (a) and (b), the term <p> <term>Hurricane Ike disaster area</term> means an area in the State of Texas or <p> Louisiana—</text> <p> <paragraph commented="no" display-inline="no-display-inline" id="id05C3F32A52CC4E238847E671BE7B9ED3"><enum>(1)</enum><text display-inline="yes-display-inline">with respect to which a major disaster has <p> been declared by the President on September 13, 2008, under section 401 of the <p> Robert T. Stafford Disaster Relief and Emergency Assistance Act by reason of <p> Hurricane Ike, and</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idD1B6F79D42404E52B26580E29E05B15A"><enum>(2)</enum><text display-inline="yes-display-inline">determined by the President to warrant <p> individual or individual and public assistance from the Federal Government <p> under such Act with respect to damages attributable to Hurricane Ike.</text> <p> </paragraph></subsection></section></subtitle><subtitle id="idD3A1D26434BB4E669D21FFED95E40728"><enum>B</enum><header>National disaster <p> relief</header> <p> <section id="id895F47B9674543BDAF25FC11F6741B0A" section-type="subsequent-section"><enum>706.</enum><header>Losses attributable <p> to federally declared disasters</header> <p> <subsection id="idE088D41BCAC54747B9089F66A757FE8B"><enum>(a)</enum><header>Waiver of adjusted <p> gross income limitation</header> <p> <paragraph id="idB9E75A5BB07D4036A5E35C50DDDDC198"><enum>(1)</enum><header>In <p> general</header><text>Subsection (h) of section 165 is amended by redesignating <p> paragraphs (3) and (4) as paragraphs (4) and (5), respectively, and by <p> inserting after paragraph (2) the following new paragraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id3E576000A5C54017AC93BB907CE48A37" reported-display-style="italic" style="OLC"> <p> <paragraph id="id863AE3B9D05F4B3D9AD64172E1C78F07"><enum>(3)</enum><header>Special rule for losses <p> in federally declared disasters</header> <p> <subparagraph id="id06ABC568DE5547C9AD146E036E2D3C41"><enum>(A)</enum><header>In <p> general</header><text>If an individual has a net disaster loss for any taxable <p> year, the amount determined under paragraph (2)(A)(ii) shall be the sum <p> of—</text> <p> <clause id="idBD811F3168FF4524BAB9550014E97457"><enum>(i)</enum><text>such net disaster loss, <p> and</text> <p> </clause><clause id="id8935AB5D1DB147A8A19561ED4898D54B"><enum>(ii)</enum><text>so much of the excess <p> referred to in the matter preceding clause (i) of paragraph (2)(A) (reduced by <p> the amount in clause (i) of this subparagraph) as exceeds 10 percent of the <p> adjusted gross income of the individual.</text> <p> </clause></subparagraph><subparagraph id="id84C84D84EB3D4D22A07D3CD9E77906A2"><enum>(B)</enum><header>Net disaster <p> loss</header><text>For purposes of subparagraph (A), the term <term>net <p> disaster loss</term> means the excess of—</text> <p> <clause id="idA4C48BB780694251800C3E02E86C4796"><enum>(i)</enum><text>the personal casualty <p> losses—</text> <p> <subclause id="idF0A8D5DA13C44D4396C3039ABAA6CDFF"><enum>(I)</enum><text>attributable to a <p> federally declared disaster occurring before January 1, 2010, and</text> <p> </subclause><subclause id="idBF9CFEA7618E4B0BAFDD461A56A2C712"><enum>(II)</enum><text>occurring in a disaster <p> area, over</text> <p> </subclause></clause><clause id="id714CA13930124C9D8859CB52DD406CC7"><enum>(ii)</enum><text>personal casualty <p> gains.</text> <p> </clause></subparagraph><subparagraph id="id8879440DC3DC4FEEA3B93B8B37E4D041"><enum>(C)</enum><header>Federally declared <p> disaster</header><text>For purposes of this paragraph—</text> <p> <clause id="id0860DBD2E6264A949748869328C375D9"><enum>(i)</enum><header>Federally declared <p> disaster</header><text>The term <term>federally declared disaster</term> means <p> any disaster subsequently determined by the President of the United States to <p> warrant assistance by the Federal Government under the Robert T. Stafford <p> Disaster Relief and Emergency Assistance Act.</text> <p> </clause><clause id="idD624F8F5A7594633BDDD37C9F73FAB26"><enum>(ii)</enum><header>Disaster <p> area</header><text display-inline="yes-display-inline">The term <term>disaster <p> area</term> means the area so determined to warrant such <p> assistance.</text> <p> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph id="idCD46B2117A294D0BBF4A195DC2482FE3"><enum>(2)</enum><header>Conforming <p> amendments</header> <p> <subparagraph id="id23658D309E694AAE9060D882026D7F89"><enum>(A)</enum><text>Section 165(h)(4)(B) (as <p> so redesignated) is amended by striking <quote>paragraph (2)</quote> and <p> inserting <quote>paragraphs (2) and (3)</quote>.</text> <p> </subparagraph><subparagraph id="idA12B2C18582144408A3BAE1296BBB7F4"><enum>(B)</enum><text>Section 165(i)(1) is <p> amended by striking <quote>loss</quote> and all that follows through <p> <quote>Act</quote> and inserting <quote>loss occurring in a disaster area (as <p> defined by clause (ii) of subsection (h)(3)(C)) and attributable to a federally <p> declared disaster (as defined by clause (i) of such subsection)</quote>.</text> <p> </subparagraph><subparagraph id="idE6F3E52AF695412A8286655C7901177D"><enum>(C)</enum><text>Section 165(i)(4) is <p> amended by striking <quote>Presidentially declared disaster (as defined by <p> section 1033(h)(3))</quote> and inserting <quote>federally declared disaster <p> (as defined by subsection (h)(3)(C)(i)</quote>.</text> <p> </subparagraph><subparagraph id="idF3C6F1716C694712ACF084E47FDB3DAD"><enum>(D)</enum><clause commented="no" display-inline="yes-display-inline" id="id6EC47D31FF3843B6AAE1A1EA59278543"><enum>(i)</enum><text display-inline="yes-display-inline">So much of subsection (h) of section 1033 <p> as precedes subparagraph (A) of paragraph (1) thereof is amended to read as <p> follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id0D9BA9A8521A45F39F4D71125D82168A" reported-display-style="italic" style="OLC"> <p> <subsection id="idD759A47203AF44AFA776F9CD0616B21C"><enum>(h)</enum><header>Special rules for <p> property damaged by federally declared disasters</header> <p> <paragraph id="id34DEAD0CE86447E1AA0975C7AF83FDBB"><enum>(1)</enum><header>Principal <p> residences</header><text>If the taxpayer’s principal residence or any of its <p> contents is located in a disaster area and is compulsorily or involuntarily <p> converted as a result of a federally declared <p> disaster—</text> <p> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> <p> </clause><clause changed="added" id="id0BFD6A3F82EF4CFFB2331AAB64DD9B28" indent="up1" reported-display-style="italic"><enum>(ii)</enum><text>Paragraph (2) of section <p> 1033(h) is amended by striking <quote>investment</quote> and all that follows <p> through “disaster” and inserting <quote>investment located in a disaster area <p> and compulsorily or involuntarily converted as a result of a federally declared <p> disaster</quote>.</text> <p> </clause><clause changed="added" id="idCC8A01BE59BA4DFB8A78233790AEB4D6" indent="up1" reported-display-style="italic"><enum>(iii)</enum><text>Paragraph (3) of <p> section 1033(h) is amended to read as follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id9CEF8C6859BE48E6ADE4532298CFA935" reported-display-style="italic" style="OLC"> <p> <paragraph id="id86A032C27F6340CF8FF5122FE3FCA067"><enum>(3)</enum><header>Federally declared <p> disaster; disaster area</header><text display-inline="yes-display-inline">The <p> terms <term>‘federally declared disaster’</term> and <term>‘disaster <p> area’</term> shall have the respective meaning given such terms by section <p> 165(h)(3)(C).</text> <p> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </clause><clause changed="added" id="id2CB0975DC63B4604B0DE2D8C199043CB" indent="up1" reported-display-style="italic"><enum>(iv)</enum><text>Section 139(c)(2) is <p> amended to read as follows:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id1EA504E031834562B2ECE3B6E0F6893E" reported-display-style="italic" style="OLC"> <p> <paragraph id="id1336B49BD5E34DEFA386EBE49962F2E2"><enum>(2)</enum><text display-inline="yes-display-inline">federally declared disaster (as defined by <p> section <p> 165(h)(3)(C)(i)),</text> <p> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </clause><clause changed="added" id="id6113DB7067934C248B6F8303631C27EE" indent="up1" reported-display-style="italic"><enum>(v)</enum><text display-inline="yes-display-inline">Subclause (II) of section 172(b)(1)(F)(ii) <p> is amended by striking <quote>Presidentially declared disasters (as defined in <p> section 1033(h)(3))</quote> and inserting <quote>federally declared disasters <p> (as defined by subsection (h)(3)(C)(i))</quote>.</text> <p> </clause><clause changed="added" id="id60A34D77BCF64C56ACFF069E2D0042EB" indent="up1" reported-display-style="italic"><enum>(vi)</enum><text display-inline="yes-display-inline">Subclause (III) of section 172(b)(1)(F)(ii) <p> is amended by striking <quote>Presidentially declared disasters</quote> and <p> inserting <quote>federally declared disasters</quote>.</text> <p> </clause><clause changed="added" display-inline="no-display-inline" id="idFBDA4475A0DA41ACAA05A85E2A5530D3" indent="up1" reported-display-style="italic"><enum>(vii)</enum><text>Subsection (a) of <p> section 7508A is amended by striking <quote>Presidentially declared disaster <p> (as defined in section 1033(h)(3))</quote> and inserting <quote>federally <p> declared disaster (as defined by section 165(h)(3)(C)(i))</quote>.</text> <p> </clause></subparagraph></paragraph></subsection><subsection id="id535571AD0F864C97B0134C8C35FDBCA7"><enum>(b)</enum><header>Increase in standard <p> deduction by disaster casualty loss</header> <p> <paragraph id="id00B813262ACC40FDB107942F7DE6CE34"><enum>(1)</enum><header>In <p> general</header><text>Paragraph (1) of section 63(c), as amended by the Housing <p> Assistance Tax Act of 2008, is amended by striking <quote>and</quote> at the <p> end of subparagraph (B), by striking the period at the end of subparagraph (C) <p> and inserting <quote>, and</quote>, and by adding at the end the following new <p> subparagraph:</text> <p> <quoted-block changed="added" id="idCE66DE44C89746B29333272EB63B4D60" reported-display-style="italic"> <p> <subparagraph id="id4C98FE2ECF80438D97A7B0C8E30DE71A"><enum>(D)</enum><text display-inline="yes-display-inline">the disaster loss <p> deduction.</text> <p> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph id="id60AF199E3901455B98EFD96A620EB893"><enum>(2)</enum><header>Disaster loss <p> deduction</header><text>Subsection (c) of section 63, as amended by the Housing <p> Assistance Tax Act of 2008, is amended by adding at the end the following new <p> paragraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idB7CFFB3B1CC545398B49A5AD396B93F1" reported-display-style="italic" style="OLC"> <p> <paragraph id="idA60C5E723FA7407BA31830BB5AEFBC9C"><enum>(8)</enum><header>Disaster loss <p> deduction</header><text display-inline="yes-display-inline">For the purposes of <p> paragraph (1), the term <term>disaster loss deduction</term> means the net <p> disaster loss (as defined in section <p> 165(h)(3)(B)).</text> <p> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph><paragraph id="id7E656B5B9D5E4BE9B68F2BCE47D7C17B"><enum>(3)</enum><header>Allowance in computing <p> alternative minimum taxable income</header><text display-inline="yes-display-inline">Subparagraph (E) of section 56(b)(1) is <p> amended by adding at the end the following new sentence: <quote>The preceding <p> sentence shall not apply to so much of the standard deduction as is determined <p> under section 63(c)(1)(D).</quote>.</text> <p> </paragraph></subsection><subsection id="id8AEC93BEC1304A4B8B796E7622C73EBC"><enum>(c)</enum><header>Increase in limitation <p> on individual loss per casualty</header><text display-inline="yes-display-inline">Paragraph (1) of section 165(h) is amended <p> by striking <quote>$100</quote> and inserting <quote>$500 ($100 for taxable <p> years beginning after December 31, 2009)</quote>.</text> <p> </subsection><subsection id="id8A79E4B6F767475780F669A3C46F76DF"><enum>(d)</enum><header>Effective <p> dates</header> <p> <paragraph id="idA55A0AE30E3D4B4CB6D042489020F663"><enum>(1)</enum><header>In <p> general</header><text>Except as provided by paragraph (2), the amendments made <p> by this section shall apply to disasters declared in taxable years beginning <p> after December 31, 2007.</text> <p> </paragraph><paragraph id="id4ED33A354F9149DF8C4B4633CA884224"><enum>(2)</enum><header>Increase in limitation <p> on individual loss per casualty</header><text display-inline="yes-display-inline">The amendment made by subsection (c) shall <p> apply to taxable years beginning after December 31, 2008.</text> <p> </paragraph></subsection></section><section id="id5D261125AF1945BB96D3EAE4DCCFB208"><enum>707.</enum><header>Expensing of Qualified <p> Disaster Expenses</header> <p> <subsection id="id6C777A7AA4574AD487DEED37D5A8DABC"><enum>(a)</enum><header>In <p> general</header><text display-inline="yes-display-inline">Part VI of subchapter <p> B of chapter 1 is amended by inserting after section 198 the following new <p> section:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idF5E1E3482B93430DB6BD10544DD48250" reported-display-style="italic" style="OLC"> <p> <section id="id843A1115BCDC4AFBADDCCC2690772232"><enum>198A.</enum><header>Expensing of <p> Qualified Disaster Expenses</header> <p> <subsection id="idD12BBACD378E470F9307E18003EDA0BB"><enum>(a)</enum><header>In <p> general</header><text display-inline="yes-display-inline">A taxpayer may elect <p> to treat any qualified disaster expenses which are paid or incurred by the <p> taxpayer as an expense which is not chargeable to capital account. Any expense <p> which is so treated shall be allowed as a deduction for the taxable year in <p> which it is paid or incurred.</text> <p> </subsection><subsection id="idE6CA5130DDD2457E90E5CD13ADA6B6BB"><enum>(b)</enum><header>Qualified disaster <p> expense</header><text>For purposes of this section, the term <term>qualified <p> disaster expense</term> means any expenditure—</text> <p> <paragraph id="idEE299D80AED84C28AB035A362015EB95"><enum>(1)</enum><text>which is paid or incurred <p> in connection with a trade or business or with business-related <p> property,</text> <p> </paragraph><paragraph id="id36675958D1F6497793D86054E9456937"><enum>(2)</enum><text display-inline="yes-display-inline">which is—</text> <p> <subparagraph id="idF2A7DE8F01F640ADB496E6D6311DE9B5"><enum>(A)</enum><text>for the abatement or <p> control of hazardous substances that were released on account of a federally <p> declared disaster occurring before January 1, 2010,</text> <p> </subparagraph><subparagraph id="id074DD1D662C64844898E50C79362ED28"><enum>(B)</enum><text>for the removal of debris <p> from, or the demolition of structures on, real property which is <p> business-related property damaged or destroyed as a result of a federally <p> declared disaster occurring before such date, or</text> <p> </subparagraph><subparagraph id="id94E1B99D9F8944FFB26478A83072F510"><enum>(C)</enum><text>for the repair of <p> business-related property damaged as a result of a federally declared disaster <p> occurring before such date, and</text> <p> </subparagraph></paragraph><paragraph id="id7EE62B67B22A4D139D27DECA99501122"><enum>(3)</enum><text>which is otherwise <p> chargeable to capital account.</text> <p> </paragraph></subsection><subsection id="idCC492D7B33A9491EAE31847D8CBC5D30"><enum>(c)</enum><header>Other <p> definitions</header><text>For purposes of this section—</text> <p> <paragraph id="id9B5498397C424A49BE346CD469525326"><enum>(1)</enum><header>Business-related <p> property</header><text>The term <term>business-related property</term> means <p> property—</text> <p> <subparagraph id="id95C850E4B45342238D0FC29E876AEF9B"><enum>(A)</enum><text>held by the taxpayer for <p> use in a trade or business or for the production of income, or</text> <p> </subparagraph><subparagraph id="id2B8170E59D9245EA8DA85D0D70E0A6D8"><enum>(B)</enum><text>described in section <p> 1221(a)(1) in the hands of the taxpayer.</text> <p> </subparagraph></paragraph><paragraph id="idAA1B0407158A4E47B16B34560147730A"><enum>(2)</enum><header>Federally declared <p> disaster</header><text>The term <term>federally declared disaster</term> has <p> the meaning given such term by section 165(h)(3)(C)(i).</text> <p> </paragraph></subsection><subsection id="id5A16F7EB612C48D2B29BA6CCDD983DE0"><enum>(d)</enum><header>Deduction recaptured as <p> ordinary income on sale, etc</header><text display-inline="yes-display-inline">Solely for purposes of section 1245, in the <p> case of property to which a qualified disaster expense would have been <p> capitalized but for this section—</text> <p> <paragraph id="id2F1EDFE82DA6461E9AA5B9561665D818"><enum>(1)</enum><text>the deduction allowed by <p> this section for such expense shall be treated as a deduction for depreciation, <p> and</text> <p> </paragraph><paragraph id="id2BBD36D7AAB346B79C94A6EC2A9C3B73"><enum>(2)</enum><text>such property (if not <p> otherwise section 1245 property) shall be treated as section 1245 property <p> solely for purposes of applying section 1245 to such deduction.</text> <p> </paragraph></subsection><subsection id="idC4A294FD49B342E8A5412FCF0056DC0B"><enum>(e)</enum><header>Coordination with other <p> provisions</header><text display-inline="yes-display-inline">Sections 198, <p> 280B, and 468 shall not apply to amounts which are treated as expenses under <p> this section.</text> <p> </subsection><subsection id="id4A25D66E6BD84823896C7E9672B8D6B9"><enum>(f)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Secretary shall prescribe such <p> regulations as may be necessary or appropriate to carry out the purposes of <p> this <p> section.</text> <p> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection id="id661E0FC53AC24E079319621396B8F9C2"><enum>(b)</enum><header>Clerical <p> amendment</header><text display-inline="yes-display-inline">The table of <p> sections for part VI of subchapter B of chapter 1 is amended by inserting after <p> the item relating to section 198 the following new item:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idA5D31B7625454BD4A012C2D31802C6B7" reported-display-style="italic" style="OLC"> <p> <toc changed="added" container-level="quoted-block-container" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration" reported-display-style="italic"> <p> <toc-entry level="section">Sec. 198A. Expensing of Qualified Disaster <p> Expenses.</toc-entry> <p> </toc> <p> <after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection id="id69BA0CE772B340028660C31E59887B43"><enum>(c)</enum><header>Effective <p> date</header><text>The amendments made by this section shall apply to amounts <p> paid or incurred after December 31, 2007 in connection with disaster declared <p> after such date.</text> <p> </subsection></section><section id="id1279FE198F134156BBE311937A894906"><enum>708.</enum><header>Net operating losses <p> attributable to federally declared disasters</header> <p> <subsection id="id94A9E5EECCDB48C09B13C0B6D8C7483A"><enum>(a)</enum><header>In <p> general</header><text display-inline="yes-display-inline">Paragraph (1) of <p> section 172(b) is amended by adding at the end the following new <p> subparagraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id56F4F1E766DC407AAACFFAEE2C7F98FC" reported-display-style="italic" style="OLC"> <p> <subparagraph id="idDFA4383160EC45E29E7EEDB5FF88EA43"><enum>(J)</enum><header>Certain losses <p> attributable federally declared disasters</header><text display-inline="yes-display-inline">In the case of a taxpayer who has a <p> qualified disaster loss (as defined in subsection (j)), such loss shall be a <p> net operating loss carryback to each of the 5 taxable years preceding the <p> taxable year of such <p> loss.</text> <p> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection id="id607A59537E1143919C9B37E551BD93FF"><enum>(b)</enum><header>Qualified disaster <p> loss</header><text display-inline="yes-display-inline">Section 172 is amended <p> by redesignating subsections (j) and (k) as subsections (k) and (l), <p> respectively, and by inserting after subsection (i) the following new <p> subsection:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id038FE4EA94B1444BAE80D08E88047E77" reported-display-style="italic" style="OLC"> <p> <subsection id="id73985EAC54324956BC54096DCFE19182"><enum>(j)</enum><header>Rules relating to <p> qualified disaster losses</header><text display-inline="yes-display-inline">For <p> purposes of this section—</text> <p> <paragraph id="idDCCB20B99B6D4D71BC46132D303509DE"><enum>(1)</enum><header>In <p> general</header><text display-inline="yes-display-inline">The term <p> <term>qualified disaster loss</term> means the lesser of—</text> <p> <subparagraph id="id78BD92BD17EE43819C05EEA3CEDFB724"><enum>(A)</enum><text>the sum of—</text> <p> <clause id="idA53CD40BE6834B86B53F0AEAE4073075"><enum>(i)</enum><text display-inline="yes-display-inline">the losses allowable under section 165 for <p> the taxable year—</text> <p> <subclause id="idAB08F014D51A442CB0C51549E18908C7"><enum>(I)</enum><text>attributable to a <p> federally declared disaster (as defined in section 165(h)(3)(C)(i)) occurring <p> before January 1, 2010, and</text> <p> </subclause><subclause id="id11F8340A30F54EBBB521B5F8A1EC4A9C"><enum>(II)</enum><text display-inline="yes-display-inline">occurring in a disaster area (as defined in <p> section 165(h)(3)(C)(ii)), and</text> <p> </subclause></clause><clause id="idDA0B90465F9F4A02BBDFD1E734CC6E58"><enum>(ii)</enum><text display-inline="yes-display-inline">the deduction for the taxable year for <p> qualified disaster expenses which is allowable under section 198A(a) or which <p> would be so allowable if not otherwise treated as an expense, or</text> <p> </clause></subparagraph><subparagraph id="id965446527E7C4017995EC94B6261AAEF"><enum>(B)</enum><text display-inline="yes-display-inline">the net operating loss for such taxable <p> year.</text> <p> </subparagraph></paragraph><paragraph id="id93FAA99B79774776AC0DCBAB5DDAB28A"><enum>(2)</enum><header>Coordination with <p> subsection <enum-in-header>(b)(2)</enum-in-header></header><text>For purposes <p> of applying subsection (b)(2), a qualified disaster loss for any taxable year <p> shall be treated in a manner similar to the manner in which a specified <p> liability loss is treated.</text> <p> </paragraph><paragraph id="idC15D27ED329243D48F66B8A1ACFED921"><enum>(3)</enum><header>Election</header><text display-inline="yes-display-inline">Any taxpayer entitled to a 5-year carryback <p> under subsection (b)(1)(J) from any loss year may elect to have the carryback <p> period with respect to such loss year determined without regard to subsection <p> (b)(1)(J). Such election shall be made in such manner as may be prescribed by <p> the Secretary and shall be made by the due date (including extensions of time) <p> for filing the taxpayer’s return for the taxable year of the net operating <p> loss. Such election, once made for any taxable year, shall be irrevocable for <p> such taxable year.</text> <p> </paragraph><paragraph id="id4C57637FD7A24D31AD58F8923A950F3D"><enum>(4)</enum><header>Exclusion</header><text display-inline="yes-display-inline">The term <term>qualified disaster <p> loss</term> shall not include any loss with respect to any property described <p> in section <p> 1400N(p)(3).</text> <p> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection id="id21C2EFC6E5254ED886F49923A04D2B04"><enum>(c)</enum><header>Loss deduction allowed <p> in computing alternative minimum taxable income</header><text>Subsection (d) of <p> section 56 is amended by adding at the end the following new paragraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id4274C453027D4A1B961A1D671554026F" reported-display-style="italic" style="OLC"> <p> <paragraph id="id367FA8D5EFCE4CCC8D0811F3CB2784F1"><enum>(3)</enum><header>Net operating loss <p> attributable to federally declared disasters</header><text display-inline="yes-display-inline">In the case of a taxpayer which has a <p> qualified disaster loss (as defined by section 172(b)(1)(J)) for the taxable <p> year, paragraph (1) shall be applied by increasing the amount determined under <p> subparagraph (A)(ii)(I) thereof by the sum of the carrybacks and carryovers of <p> such <p> loss.</text> <p> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection id="id6817C1C4DC5B495BAF7D39B2C07D70D4"><enum>(d)</enum><header>Conforming <p> amendments</header> <p> <paragraph id="id2B6B4B7A67B0465E9BDD0C042B083912"><enum>(1)</enum><text display-inline="yes-display-inline">Clause (ii) of section 172(b)(1)(F) is <p> amended by inserting <quote>or qualified disaster loss (as defined in <p> subsection (j))</quote> before the period at the end of the last <p> sentence.</text> <p> </paragraph><paragraph id="id22F2F27B65664C0CA2A2D299BEB6D2D1"><enum>(2)</enum><text>Paragraph (1) of section <p> 172(i) is amended by adding at the end the following new flush sentence:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id07A2D45746644DFCA7E232ED7FF46AF5" reported-display-style="italic" style="OLC"> <p> <quoted-block-continuation-text quoted-block-continuation-text-level="paragraph">Such term <p> shall not include any qualified disaster loss (as defined in subsection <p> (j)).</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block> <p> </paragraph></subsection><subsection id="id4609900BEC8446AEB2673B4422CFA8AD"><enum>(e)</enum><header>Effective <p> date</header><text>The amendments made by this section shall apply to losses <p> arising in taxable years beginning after December 31, 2007, in connection with <p> disasters declared after such date.</text> <p> </subsection></section><section commented="no" id="idC8A842D87EF14CE485C3EE64B7ED02C0"><enum>709.</enum><header>Waiver of certain <p> mortgage revenue bond requirements following federally declared <p> disasters</header> <p> <subsection commented="no" id="id48983279E46646558F51ECC26BAED090"><enum>(a)</enum><header>In <p> general</header><text display-inline="yes-display-inline">Subsection (k) of <p> section 143 is amended by adding at the end the following new paragraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id4FF322F1682A4A97A0447FAFFBBECF65" reported-display-style="italic" style="OLC"> <p> <paragraph commented="no" id="id41558764CD2147759B82B0EC7928C90F"><enum>(12)</enum><header>Special rules for <p> residences destroyed in federally declared disasters</header> <p> <subparagraph commented="no" id="id870C8EC4B4DB46CBA3BBB3C9128A3E04"><enum>(A)</enum><header>Principal residence <p> destroyed</header><text>At the election of the taxpayer, if the principal <p> residence (within the meaning of section 121) of such taxpayer is—</text> <p> <clause commented="no" id="id73E3AC92C078425EA3A3CD52ABAF9BEA"><enum>(i)</enum><text>rendered unsafe for use <p> as a residence by reason of a federally declared disaster occurring before <p> January 1, 2010, or</text> <p> </clause><clause commented="no" id="idEA5F5E6506B04F9193B64768F37E398D"><enum>(ii)</enum><text>demolished or relocated <p> by reason of an order of the government of a State or political subdivision <p> thereof on account of a federally declared disaster occurring before such <p> date,</text> <p> </clause><continuation-text commented="no" continuation-text-level="subparagraph">then, for the 2-year period beginning on <p> the date of the disaster declaration, subsection (d)(1) shall not apply with <p> respect to such taxpayer and subsection (e) shall be applied by substituting <p> <quote>110</quote> for <quote>90</quote> in paragraph (1) thereof.</continuation-text></subparagraph><subparagraph commented="no" id="id2375529094B341CB91EF1F957B992194"><enum>(B)</enum><header>Principal residence <p> damaged</header> <p> <clause commented="no" id="idD65B4992AE28470E8287D2EB0F0516DF"><enum>(i)</enum><header>In <p> general</header><text>At the election of the taxpayer, if the principal <p> residence (within the meaning of section 121) of such taxpayer was damaged as <p> the result of a federally declared disaster occurring before January 1, 2010, <p> any owner-financing provided in connection with the repair or reconstruction of <p> such residence shall be treated as a qualified rehabilitation loan.</text> <p> </clause><clause commented="no" id="id85065C700AE346D7B2D00120D1E3A486"><enum>(ii)</enum><header>Limitation</header><text>The <p> aggregate owner-financing to which clause (i) applies shall not exceed the <p> lesser of—</text> <p> <subclause commented="no" id="id05FE953F19F041CFBE5EED3F01328BB2"><enum>(I)</enum><text>the cost of such repair <p> or reconstruction, or</text> <p> </subclause><subclause commented="no" id="id1A54B9B4F5824E61A8AB629C94DDC33A"><enum>(II)</enum><text>$150,000.</text> <p> </subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD72166DAA84947ABBD326282773760A3"><enum>(C)</enum><header>Federally declared <p> disaster</header><text>For purposes of this paragraph, the term <term>federally <p> declared disaster</term> has the meaning given such term by section <p> 165(h)(3)(C)(i).</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF5EC043220854F8E8AEECA7017B81684"><enum>(D)</enum><header>Election; denial of <p> double benefit</header> <p> <clause commented="no" display-inline="no-display-inline" id="id59A657CD1E2A441AB3E12B5FF71A771A"><enum>(i)</enum><header>Election</header><text>An <p> election under this paragraph may not be revoked except with the consent of the <p> Secretary.</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="id1A9C9A8DFE1C46F3AB82EC574E3D33B0"><enum>(ii)</enum><header>Denial of double <p> benefit</header><text>If a taxpayer elects the application of this paragraph, <p> paragraph (11) shall not apply with respect to the purchase or financing of any <p> residence by such <p> taxpayer.</text> <p> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="idAE497582BDD04DBBB9F9687CB5452BE7"><enum>(b)</enum><header>Effective <p> date</header><text>The amendment made by subsection (a) shall apply to <p> disasters occurring after December 31, 2007.</text> <p> </subsection></section><section commented="no" display-inline="no-display-inline" id="id8B22002633BD4F32B05B9CCB6F788CB5" section-type="subsequent-section"><enum>710.</enum><header display-inline="yes-display-inline">Special depreciation allowance for <p> qualified disaster property</header> <p> <subsection commented="no" display-inline="no-display-inline" id="id2413B4AECEE648BE807045C77A86FE0E"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 168, as amended by this Act, is <p> amended by adding at the end the following new subsection:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id4992826BC786412780FE4EBFE577FAC4" reported-display-style="italic" style="OLC"> <p> <subsection commented="no" display-inline="no-display-inline" id="id1B261C974F3247D484AEFE3EBC63E193"><enum>(n)</enum><header display-inline="yes-display-inline">Special allowance for qualified disaster <p> assistance property</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="idE6A3EBBC2BDA432A87CD64A117BC6275"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In the case of any qualified disaster <p> assistance property—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id9E8B16AC8B474E0D8DB738A10C8C5575"><enum>(A)</enum><text display-inline="yes-display-inline">the depreciation deduction provided by <p> section 167(a) for the taxable year in which such property is placed in service <p> shall include an allowance equal to 50 percent of the adjusted basis of the <p> qualified disaster assistance property, and</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id4D2E94E43FB5413FB9C41A00436E20E1"><enum>(B)</enum><text display-inline="yes-display-inline">the adjusted basis of the qualified <p> disaster assistance property shall be reduced by the amount of such deduction <p> before computing the amount otherwise allowable as a depreciation deduction <p> under this chapter for such taxable year and any subsequent taxable <p> year.</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA5CEA7841CE94FFEB55FCE0E6FF3733E"><enum>(2)</enum><header display-inline="yes-display-inline">Qualified disaster assistance <p> property</header><text display-inline="yes-display-inline">For purposes of this <p> subsection—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="idABE83CB2C36142B7B3168CB5B12C3A3A"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>qualified disaster <p> assistance property</term> means any property—</text> <p> <clause commented="no" display-inline="no-display-inline" id="idCB8F9BE919F54197805E09E546526208"><enum>(i)</enum><subclause commented="no" display-inline="yes-display-inline" id="id92950B1D19D7428886B64521AD697227"><enum>(I)</enum><text>which is described in <p> subsection (k)(2)(A)(i), or</text> <p> </subclause><subclause changed="added" commented="no" display-inline="no-display-inline" id="idFF4C3C687D45424DBD47E3B32F77AF61" indent="up1" reported-display-style="italic"><enum>(II)</enum><text>which is <p> nonresidential real property or residential rental property,</text> <p> </subclause></clause><clause id="ID435d7fbb0e504a34bc68beb0aded5eb0"><enum>(ii)</enum><text>substantially all of the <p> use of which is—</text> <p> <subclause id="idD2968FACAE8A4B82B41E5C3E36A16671"><enum>(I)</enum><text>in a disaster area with <p> respect to a federally declared disaster occurring before January 1, 2010, <p> and</text> <p> </subclause><subclause id="id197A4841C57744A8BAE25791CD47E2B8"><enum>(II)</enum><text>in the active conduct of <p> a trade or business by the taxpayer in such disaster area,</text> <p> </subclause></clause><clause commented="no" display-inline="no-display-inline" id="id71D41413DED649A9ADAEEC50C6E7A390"><enum>(iii)</enum><text display-inline="yes-display-inline">which—</text> <p> <subclause commented="no" display-inline="no-display-inline" id="id9D9EA4157F564C0CB63E5661A04E9CD4"><enum>(I)</enum><text display-inline="yes-display-inline">rehabilitates property damaged, or replaces <p> property destroyed or condemned, as a result of such federally declared <p> disaster, except that, for purposes of this clause, property shall be treated <p> as replacing property destroyed or condemned if, as part of an integrated plan, <p> such property replaces property which is included in a continuous area which <p> includes real property destroyed or condemned, and</text> <p> </subclause><subclause commented="no" display-inline="no-display-inline" id="id883FB5E003F34515A52316B6BCF55BE3"><enum>(II)</enum><text display-inline="yes-display-inline">is similar in nature to, and located in the <p> same county as, the property being rehabilitated or replaced,</text> <p> </subclause></clause><clause id="ID8cf57daf33a84037a9834fcff2ec2a5f"><enum>(iv)</enum><text>the original use of <p> which in such disaster area commences with an eligible taxpayer on or after the <p> applicable disaster date,</text> <p> </clause><clause id="ID26e97a112b8c4c3e83cf2727c4638faa"><enum>(v)</enum><text>which is acquired by such <p> eligible taxpayer by purchase (as defined in section 179(d)) on or after the <p> applicable disaster date, but only if no written binding contract for the <p> acquisition was in effect before such date, and</text> <p> </clause><clause id="ID812c2c17d7954738b98f802d6fa24658"><enum>(vi)</enum><text>which is placed in <p> service by such eligible taxpayer on or before the date which is the last day <p> of the third calendar year following the applicable disaster date (the fourth <p> calendar year in the case of nonresidential real property and residential <p> rental property).</text> <p> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD0A41538A8B74C0C85909B5F81B83325"><enum>(B)</enum><header display-inline="yes-display-inline">Exceptions</header> <p> <clause commented="no" display-inline="no-display-inline" id="idC08AB8EA153546ADB2CEF1759DE2AFA7"><enum>(i)</enum><header display-inline="yes-display-inline">Other bonus depreciation <p> property</header><text display-inline="yes-display-inline">The term <p> <term>qualified disaster assistance property</term> shall not include—</text> <p> <subclause commented="no" display-inline="no-display-inline" id="id44C674BBEBD44583A301AA7F279D193E"><enum>(I)</enum><text display-inline="yes-display-inline">any property to which subsection (k) <p> (determined without regard to paragraph (4)), (l), or (m) applies,</text> <p> </subclause><subclause commented="no" display-inline="no-display-inline" id="idF26083454D88445B809A23DD27528424"><enum>(II)</enum><text>any property to which <p> section 1400N(d) applies, and</text> <p> </subclause><subclause commented="no" display-inline="no-display-inline" id="id1FBA51483A7A4D8692C40A39CDDBF619"><enum>(III)</enum><text>any property described <p> in section 1400N(p)(3).</text> <p> </subclause></clause><clause commented="no" display-inline="no-display-inline" id="idA9A37D339354467790AEFE843DAE76DF"><enum>(ii)</enum><header display-inline="yes-display-inline">Alternative depreciation <p> property</header><text display-inline="yes-display-inline">The term <p> <term>qualified disaster assistance property</term> shall not include any <p> property to which the alternative depreciation system under subsection (g) <p> applies, determined without regard to paragraph (7) of subsection (g) (relating <p> to election to have system apply).</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="idA0314463FFED4AA9AEEDE83471AAF3F6"><enum>(iii)</enum><header>Tax-exempt bond <p> financed property</header><text>Such term shall not include any property any <p> portion of which is financed with the proceeds of any obligation the interest <p> on which is exempt from tax under section 103.</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="id7CAEAE8520BB4248BD10915CCDFCF8A1"><enum>(iv)</enum><header>Qualified <p> revitalization buildings</header><text>Such term shall not include any <p> qualified revitalization building with respect to which the taxpayer has <p> elected the application of paragraph (1) or (2) of section 1400I(a).</text> <p> </clause><clause commented="no" display-inline="no-display-inline" id="id92B6B6A5586A41F394D6AB3642147D44"><enum>(v)</enum><header display-inline="yes-display-inline">Election out</header><text display-inline="yes-display-inline">If a taxpayer makes an election under this <p> clause with respect to any class of property for any taxable year, this <p> subsection shall not apply to all property in such class placed in service <p> during such taxable year.</text> <p> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id56CF04A8A4234607A45E41CF36ADC9AF"><enum>(C)</enum><header>Special <p> rules</header><text>For purposes of this subsection, rules similar to the rules <p> of subparagraph (E) of subsection (k)(2) shall apply, except that such <p> subparagraph shall be applied—</text> <p> <clause id="IDcfe715e26fcb458c937023c9e6adbdc3"><enum>(i)</enum><text>by substituting <p> <quote>the applicable disaster date</quote> for <quote>December 31, <p> 2007</quote> each place it appears therein,</text> <p> </clause><clause id="IDebc5459f62f146f7a63c7f1e03013c66"><enum>(ii)</enum><text>without regard to <p> <quote>and before January 1, 2009</quote> in clause (i) thereof, and</text> <p> </clause><clause id="IDbf0024f212304084877e7ed543b3faa4"><enum>(iii)</enum><text>by substituting <p> <quote>qualified disaster assistance property</quote> for <quote>qualified <p> property</quote> in clause (iv) thereof.</text> <p> </clause></subparagraph><subparagraph id="IDe064e94f533a4b7c8e2e3ecc092c7e69"><enum>(D)</enum><header>Allowance against <p> alternative minimum tax</header><text>For purposes of this subsection, rules <p> similar to the rules of subsection (k)(2)(G) shall apply.</text> <p> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id024883F28B6643D089B5DC45C7A3CD7D"><enum>(3)</enum><header display-inline="yes-display-inline">Other definitions</header><text display-inline="yes-display-inline">For purposes of this subsection—</text> <p> <subparagraph commented="no" display-inline="no-display-inline" id="id00653963ACC542298460E81D0BD746A2"><enum>(A)</enum><header display-inline="yes-display-inline">Applicable disaster date</header><text>The <p> term <term>applicable disaster date</term> means, with respect to any federally <p> declared disaster, the date on which such federally declared disaster <p> occurs.</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id0518E4976BDA4C56BE61293E41F6013C"><enum>(B)</enum><header>Federally declared <p> disaster</header><text>The term <term>federally declared disaster</term> has <p> the meaning given such term under section 165(h)(3)(C)(i).</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD45A81DB8DB64F9C83479510234A1E91"><enum>(C)</enum><header>Disaster <p> area</header><text>The term <term>disaster area</term> has the meaning given <p> such term under section 165(h)(3)(C)(ii).</text> <p> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idFE66366219E04474BBCB7738F3F3D9EF"><enum>(D)</enum><header>Eligible <p> taxpayer</header><text>The term <term>eligible taxpayer</term> means a taxpayer <p> who has suffered an economic loss attributable to a federally declared <p> disaster.</text> <p> </subparagraph></paragraph><paragraph id="idE4197277FCBF4779B681DFA900672AC9"><enum>(4)</enum><header>Recapture</header><text>For <p> purposes of this subsection, rules similar to the rules under section <p> 179(d)(10) shall apply with respect to any qualified disaster assistance <p> property which ceases to be qualified disaster assistance <p> property.</text> <p> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="id9AB1384E1CF04AAF88B63C9B116B3B96"><enum>(b)</enum><header display-inline="yes-display-inline">Effective <p> date</header><text display-inline="yes-display-inline">The amendment made by <p> this section shall apply to property placed in service after December 31, 2007, <p> with respect disasters declared after such date.</text> <p> </subsection></section><section commented="no" display-inline="no-display-inline" id="id3AA72491FA4C4B25AFA0739EA05B5B44"><enum>711.</enum><header>Increased expensing <p> for qualified disaster assistance property</header> <p> <subsection commented="no" display-inline="no-display-inline" id="idE25FDF89C1084490B8FF4A04516DE503"><enum>(a)</enum><header>In <p> general</header><text>Section 179 is amended by adding at the end the following <p> new subsection:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="idA186CBC412984CF8ADCEC242946C4345" reported-display-style="italic" style="OLC"> <p> <subsection commented="no" display-inline="no-display-inline" id="idED5582FEC7E14E54B9871F8EA022A5A5"><enum>(e)</enum><header>Special rules for <p> qualified disaster assistance property</header> <p> <paragraph commented="no" display-inline="no-display-inline" id="idC88AE213F3E1412695C474B883BB31C1"><enum>(1)</enum><header>In <p> general</header><text>For purposes of this section—</text> <p> <subparagraph id="ID79e26ed65fba4a1cbc761ed9923ff261"><enum>(A)</enum><text>the dollar amount in <p> effect under subsection (b)(1) for the taxable year shall be increased by the <p> lesser of—</text> <p> <clause id="ID433a5de2f3174958a117c11977d08575"><enum>(i)</enum><text>$100,000, or</text> <p> </clause><clause id="ID8d9d080df15548c38d2059318f5fbb19"><enum>(ii)</enum><text>the cost of qualified <p> section 179 disaster assistance property placed in service during the taxable <p> year, and</text> <p> </clause></subparagraph><subparagraph id="ID28638a6edc39441d91feec97397d51ae"><enum>(B)</enum><text>the dollar amount in <p> effect under subsection (b)(2) for the taxable year shall be increased by the <p> lesser of—</text> <p> <clause id="ID6798a128fc884f299f7b63004b61d50d"><enum>(i)</enum><text>$600,000, or</text> <p> </clause><clause id="ID3a0766ae735441b1bdb9e1aa86326c51"><enum>(ii)</enum><text>the cost of qualified <p> section 179 disaster assistance property placed in service during the taxable <p> year.</text> <p> </clause></subparagraph></paragraph><paragraph id="ID025c1297088b4463b4d26b8452cf17e1"><enum>(2)</enum><header>Qualified section 179 <p> disaster assistance property</header><text>For purposes of this subsection, the <p> term <term>qualified section 179 disaster assistance property</term> means <p> section 179 property (as defined in subsection (d)) which is qualified disaster <p> assistance property (as defined in section 168(n)(2)).</text> <p> </paragraph><paragraph id="ID77e43e11cd014576bb320c7022f46139"><enum>(3)</enum><header>Coordination with <p> empowerment zones and renewal communities</header><text>For purposes of <p> sections 1397A and 1400J, qualified section 179 disaster assistance property <p> shall not be treated as qualified zone property or qualified renewal property, <p> unless the taxpayer elects not to take such qualified section 179 disaster <p> assistance property into account for purposes of this subsection.</text> <p> </paragraph><paragraph id="ID38df02d8572c4272ab9c588e133fb416"><enum>(4)</enum><header>Recapture</header><text>For <p> purposes of this subsection, rules similar to the rules under subsection <p> (d)(10) shall apply with respect to any qualified section 179 disaster <p> assistance property which ceases to be qualified section 179 disaster <p> assistance <p> property.</text> <p> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection commented="no" display-inline="no-display-inline" id="idB7ADBC175D9B42E4810EEB177BBBD046"><enum>(b)</enum><header>Effective <p> date</header><text>The amendment made by this section shall apply to property <p> placed in service after December 31, 2007, with respect disasters declared <p> after such date.</text> <p> </subsection></section><section id="id3FF3DB08D1EF4F24A11045DEEFF3A8AF"><enum>712.</enum><header>Coordination with <p> Heartland disaster relief</header><text display-inline="no-display-inline">The <p> amendments made by this subtitle, other than the amendments made by sections <p> 706(a)(2), 710, and 711, shall not apply to any disaster described in section <p> 702(c)(1)(A), or to any expenditure or loss resulting from such <p> disaster.</text> <p> </section></subtitle><enum>VIII</enum><header>Spending reductions <p> and appropriate revenue raisers for new tax relief policy</header> <p> <section display-inline="no-display-inline" id="HA9568EBB9ECE4CD2BF996C26B9C0BC04" section-type="subsequent-section"><enum>801.</enum><header>Nonqualified <p> deferred compensation from certain tax indifferent parties</header> <p> <subsection id="H43CE797BD056487A867F0023ACABDC6E"><enum>(a)</enum><header>In <p> general</header><text>Subpart B of part II of subchapter E of chapter 1 is <p> amended by inserting after section 457 the following new section:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H26C582B356354245942D2735ADE3D286" reported-display-style="italic" style="OLC"> <p> <section id="H3E8BDC8712EF4E9E9DDADA46038E5A7"><enum>457A.</enum><header>Nonqualified deferred <p> compensation from certain tax indifferent parties</header> <p> <subsection id="H5FC15AB791954DBF0086E67D848FD7D9"><enum>(a)</enum><header>In <p> general</header><text display-inline="yes-display-inline">Any compensation <p> which is deferred under a nonqualified deferred compensation plan of a <p> nonqualified entity shall be includible in gross income when there is no <p> substantial risk of forfeiture of the rights to such compensation.</text> <p> </subsection><subsection id="H89DCEB74D9E548A6BCE86967C27FAE4D"><enum>(b)</enum><header>Nonqualified <p> entity</header><text>For purposes of this section, the term <term>nonqualified <p> entity</term> means—</text> <p> <paragraph id="H34662E7383D743668DEC2D43EBE9ECF9"><enum>(1)</enum><text display-inline="yes-display-inline">any foreign corporation unless <p> substantially all of its income is—</text> <p> <subparagraph id="HFD684D6A71124DA8BDC94A7A9735B4C"><enum>(A)</enum><text>effectively connected <p> with the conduct of a trade or business in the United States, or</text> <p> </subparagraph><subparagraph id="HB99C9E17C63940EE89D6DDD264912115"><enum>(B)</enum><text>subject to a <p> comprehensive foreign income tax, and</text> <p> </subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H752D950C68104B3FA823898D28B0F1E7"><enum>(2)</enum><text display-inline="yes-display-inline">any partnership unless substantially all of <p> its income is allocated to persons other than—</text> <p> <subparagraph id="HDA93AF37A2464346B029A734F32E5629"><enum>(A)</enum><text>foreign persons with <p> respect to whom such income is not subject to a comprehensive foreign income <p> tax, and</text> <p> </subparagraph><subparagraph id="HC609E9E2758444ACA7644D94252B51E0"><enum>(B)</enum><text>organizations which are <p> exempt from tax under this title.</text> <p> </subparagraph></paragraph></subsection><subsection id="H06DD89D2B89744D2955CD4526E48D014"><enum>(c)</enum><header>Determinability of <p> amounts of compensation</header> <p> <paragraph id="H68C1B9E2BB114F699F003FE580AA351D"><enum>(1)</enum><header>In <p> general</header><text>If the amount of any compensation is not determinable at <p> the time that such compensation is otherwise includible in gross income under <p> subsection (a)—</text> <p> <subparagraph id="H2BD89F86A5A1406CB59649F94050151C"><enum>(A)</enum><text>such amount shall be so <p> includible in gross income when determinable, and</text> <p> </subparagraph><subparagraph id="H0D8FFAA43089417398F46DA264AA7FFC"><enum>(B)</enum><text>the tax imposed under <p> this chapter for the taxable year in which such compensation is includible in <p> gross income shall be increased by the sum of—</text> <p> <clause id="H52D4CAC0EDE64485AFE57792D519A0A4"><enum>(i)</enum><text>the amount of interest <p> determined under paragraph (2), and</text> <p> </clause><clause id="H9D2F5A3B985D45E7A54942513F2136EC"><enum>(ii)</enum><text>an amount equal to 20 <p> percent of the amount of such compensation.</text> <p> </clause></subparagraph></paragraph><paragraph id="H65527DD047694E5DAD0783AC19954996"><enum>(2)</enum><header>Interest</header><text display-inline="yes-display-inline">For purposes of paragraph (1)(B)(i), the <p> interest determined under this paragraph for any taxable year is the amount of <p> interest at the underpayment rate under section 6621 plus 1 percentage point on <p> the underpayments that would have occurred had the deferred compensation been <p> includible in gross income for the taxable year in which first deferred or, if <p> later, the first taxable year in which such deferred compensation is not <p> subject to a substantial risk of forfeiture.</text> <p> </paragraph></subsection><subsection id="HF2E87AB5A5204D458853955B66C72908"><enum>(d)</enum><header>Other definitions and <p> special rules</header><text>For purposes of this section—</text> <p> <paragraph display-inline="no-display-inline" id="H32E928484653453687512F89041CCE87"><enum>(1)</enum><header>Substantial risk of <p> forfeiture</header> <p> <subparagraph id="HACE6796709BC42DFB7D8F2EB7F62EE1F"><enum>(A)</enum><header>In <p> general</header><text>The rights of a person to compensation shall be treated <p> as subject to a substantial risk of forfeiture only if such person’s rights to <p> such compensation are conditioned upon the future performance of substantial <p> services by any individual.</text> <p> </subparagraph><subparagraph id="H22F1631E159644639C4B487F70145539"><enum>(B)</enum><header>Exception for <p> compensation based on gain recognized on an investment asset</header> <p> <clause id="H97565400976F41069B5EC1A4AA700065"><enum>(i)</enum><header>In <p> general</header><text>To the extent provided in regulations prescribed by the <p> Secretary, if compensation is determined solely by reference to the amount of <p> gain recognized on the disposition of an investment asset, such compensation <p> shall be treated as subject to a substantial risk of forfeiture until the date <p> of such disposition.</text> <p> </clause><clause id="H5F055A624D0B426B8DF0ED6D7213FE37"><enum>(ii)</enum><header>Investment <p> asset</header><text>For purposes of clause (i), the term <quote>investment <p> asset</quote> means any single asset (other than an investment fund or similar <p> entity)—</text> <p> <subclause id="H2F05728205F4454CAFE94ED66F2626F"><enum>(I)</enum><text>acquired directly by an <p> investment fund or similar entity,</text> <p> </subclause><subclause id="H35EA5DA7FA4342C481C1460057AC33E9"><enum>(II)</enum><text>with respect to which <p> such entity does not (nor does any person related to such entity) participate <p> in the active management of such asset (or if such asset is an interest in an <p> entity, in the active management of the activities of such entity), and</text> <p> </subclause><subclause id="H6A0DB42F66B5459AA76889B2A98D0875"><enum>(III)</enum><text>substantially all of <p> any gain on the disposition of which (other than such deferred compensation) is <p> allocated to investors in such entity.</text> <p> </subclause></clause><clause id="HD987FA28AC684C9CAC010090E86C14E0"><enum>(iii)</enum><header>Coordination with <p> special rule</header><text>Paragraph (3)(B) shall not apply to any compensation <p> to which clause (i) applies.</text> <p> </clause></subparagraph></paragraph><paragraph id="H78F35B34193646C598F00969C675EEE"><enum>(2)</enum><header>Comprehensive foreign <p> income tax</header><text>The term <term>comprehensive foreign income tax</term> <p> means, with respect to any foreign person, the income tax of a foreign country <p> if—</text> <p> <subparagraph id="H38FE500C943F47FB80D3EC92A048D164"><enum>(A)</enum><text>such person is eligible <p> for the benefits of a comprehensive income tax treaty between such foreign <p> country and the United States, or</text> <p> </subparagraph><subparagraph id="H0C507548FD454F7FA5C952D473C7523"><enum>(B)</enum><text>such person demonstrates <p> to the satisfaction of the Secretary that such foreign country has a <p> comprehensive income tax.</text> <p> </subparagraph></paragraph><paragraph id="H5098EA89AAC3466CBAEDDB600F6E223"><enum>(3)</enum><header>Nonqualified deferred <p> compensation plan</header> <p> <subparagraph id="H2C84F930CFEB49DFBBCDA4D28C25F2B9"><enum>(A)</enum><header>In <p> general</header><text>The term <term>nonqualified deferred compensation <p> plan</term> has the meaning given such term under section 409A(d), except that <p> such term shall include any plan that provides a right to compensation based on <p> the appreciation in value of a specified number of equity units of the service <p> recipient.</text> <p> </subparagraph><subparagraph commented="no" id="HE79205279EB84E138884003132525BC0"><enum>(B)</enum><header>Exception</header><text display-inline="yes-display-inline">Compensation shall not be treated as <p> deferred for purposes of this section if the service provider receives payment <p> of such compensation not later than 12 months after the end of the taxable year <p> of the service recipient during which the right to the payment of such <p> compensation is no longer subject to a substantial risk of forfeiture.</text> <p> </subparagraph></paragraph><paragraph id="H6BB027278EC5443DA8DBD16DA758CC95"><enum>(4)</enum><header>Exception for certain <p> compensation with respect to effectively connected income</header><text display-inline="yes-display-inline">In the case a foreign corporation with <p> income which is taxable under section 882, this section shall not apply to <p> compensation which, had such compensation had been paid in cash on the date <p> that such compensation ceased to be subject to a substantial risk of <p> forfeiture, would have been deductible by such foreign corporation against such <p> income.</text> <p> </paragraph><paragraph id="H780BAB6B12224ACD96690019DC53BD35"><enum>(5)</enum><header>Application of <p> rules</header><text display-inline="yes-display-inline">Rules similar to the <p> rules of paragraphs (5) and (6) of section 409A(d) shall apply.</text> <p> </paragraph></subsection><subsection id="HD7D3D53ADA1246AB939602E904769BE3"><enum>(e)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Secretary shall prescribe such <p> regulations as may be necessary or appropriate to carry out the purposes of <p> this section, including regulations disregarding a substantial risk of <p> forfeiture in cases where necessary to carry out the purposes of this <p> section.</text> <p> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection id="id2364BEB191ED4BD0B57CDFD71516E102"><enum>(b)</enum><header>Conforming <p> amendment</header><text>Section 26(b)(2), as amended by the Housing Assistance <p> Tax Act of 2008, is amended by striking <quote>and</quote> at the end of <p> subparagraph (V), by striking the period at the end of subparagraph (W) and <p> inserting <quote>, and</quote>, and by adding at the end the following new <p> subparagraph:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="id9FAF4BE4BB8A4E81A2E4E123E594BFB7" reported-display-style="italic" style="OLC"> <p> <subparagraph id="id99D593C5647B42B88D4F5BD47D4FF47A"><enum>(X)</enum><text display-inline="yes-display-inline">section 457A(c)(1)(B) (relating to <p> determinability of amounts of <p> compensation).</text> <p> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection id="H3DBCA16116ED48729FE6ACA4330453B3"><enum>(c)</enum><header>Clerical <p> amendment</header><text display-inline="yes-display-inline">The table of <p> sections of subpart B of part II of subchapter E of chapter 1 is amended by <p> inserting after the item relating to section 457 the following new item:</text> <p> <quoted-block changed="added" display-inline="no-display-inline" id="H8FAB2AC15DE741ED880792AD57FCE1FA" reported-display-style="italic" style="OLC"> <p> <toc changed="added" container-level="quoted-block-container" idref="H26C582B356354245942D2735ADE3D286" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration" reported-display-style="italic"> <p> <toc-entry idref="H3E8BDC8712EF4E9E9DDADA46038E5A7" level="section">Sec. 457A. Nonqualified <p> deferred compensation from certain tax indifferent <p> parties.</toc-entry> <p> </toc> <p> <after-quoted-block>.</after-quoted-block></quoted-block> <p> </subsection><subsection id="H5807AAA0342A41248586F44067BCF7BB"><enum>(d)</enum><header>Effective date</header> <p> <paragraph id="HFB046F29FA934673B2EAFCB0D37200F5"><enum>(1)</enum><header>In <p> general</header><text>Except as otherwise provided in this subsection, the <p> amendments made by this section shall apply to amounts deferred which are <p> attributable to services performed after December 31, 2008.</text> <p> </paragraph><paragraph id="H8A25207834684D439DB1EC1135078556"><enum>(2)</enum><header>Application to existing <p> deferrals</header><text>In the case of any amount deferred to which the <p> amendments made by this section do not apply solely by reason of the fact that <p> the amount is attributable to services performed before January 1, 2009, to the <p> extent such amount is not includible in gross income in a taxable year <p> beginning before 2018, such amounts shall be includible in gross income in the <p> later of—</text> <p> <subparagraph id="HD192F8B69E774AEE9147D06066C1C872"><enum>(A)</enum><text>the last taxable year <p> beginning before 2018, or</text> <p> </subparagraph><subparagraph id="H860E5503C4414DD393999F00CF9B507"><enum>(B)</enum><text>the taxable year in which <p> there is no substantial risk of forfeiture of the rights to such compensation <p> (determined in the same manner as determined for purposes of section 457A of <p> the Internal Revenue Code of 1986, as added by this section).</text> <p> </subparagraph></paragraph><paragraph id="H03F81E313C4B42B5B9D2997C040299F"><enum>(3)</enum><header>Accelerated <p> payments</header><text display-inline="yes-display-inline">No later than 120 <p> days after the date of the enactment of this Act, the Secretary shall issue <p> guidance providing a limited period of time during which a nonqualified <p> deferred compensation arrangement attributable to services performed on or <p> before December 31, 2008, may, without violating the requirements of section <p> 409A(a) of the Internal Revenue Code of 1986, be amended to conform the date of <p> distribution to the date the amounts are required to be included in <p> income.</text> <p> </paragraph><paragraph id="H62DEEC775114410798834E5B00457122"><enum>(4)</enum><header>Certain back-to-back <p> arrangements</header><text>If the taxpayer is also a service recipient and <p> maintains one or more nonqualified deferred compensation arrangements for its <p> service providers under which any amount is attributable to services performed <p> on or before December 31, 2008, the guidance issued under paragraph (4) shall <p> permit such arrangements to be amended to conform the dates of distribution <p> under such arrangement to the date amounts are required to be included in the <p> income of such taxpayer under this subsection.</text> <p> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9F90CFEE2DC64A99B572957AB057CD90"><enum>(5)</enum><header>Accelerated payment not <p> treated as material modification</header><text>Any amendment to a nonqualified <p> deferred compensation arrangement made pursuant to paragraph (4) or (5) shall <p> not be treated as a material modification of the arrangement for purposes of <p> <external-xref legal-doc="usc" parsable-cite="usc/26/409A">section 409A</external-xref> of the Internal Revenue Code of 1986.</text> <p> </paragraph></subsection></section>

Amend the title so as to read: An Act to

provide authority for the Federal Government to purchase and insure certain

types of troubled assets for the purposes of providing stability to and

preventing disruption in the economy and financial system and protecting

taxpayers, to amend the Internal Revenue Code of 1986 to provide incentives for

energy production and conservation, to extend certain expiring provisions, to

provide individual income tax relief, and for other

purpose.

Secretary

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