“TEXT OF AMENDMENTS” published by Congressional Record on June 16, 2010

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Volume 156, No. 90 covering the 2nd Session of the 111th Congress (2009 - 2010) was published by the Congressional Record.

The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.

“TEXT OF AMENDMENTS” mentioning the Environmental Protection Agency was published in the Senate section on pages S4996-S5043 on June 16, 2010.

The publication is reproduced in full below:

TEXT OF AMENDMENTS

SA 4366. Mr. ENSIGN submitted an amendment intended to be proposed to amendment SA 4301 proposed by Mr. Baucus to the bill H.R. 4213, to amend the Internal Revenue Code of 1986 to extend certain expiring provisions, and for other purposes; which was ordered to lie on the table; as follows:

At the end of subtitle A of title II, insert the following:

SEC. 2__. EXTENSION OF GRANTS FOR SPECIFIED ENERGY PROPERTY

IN LIEU OF TAX CREDITS.

(a) In General.--Subsection (a) of section 1603 of division B of the American Recovery and Reinvestment Act of 2009 is amended--

(1) in paragraph (1), by striking ``2009 or 2010'' and inserting ``2009, 2010, 2011, or 2012'', and

(2) in paragraph (2)--

(A) by striking ``after 2010'' and inserting ``after 2012'', and

(B) by striking ``2009 or 2010'' and inserting ``2009, 2010, 2011, or 2012''.

(b) Conforming Amendment.--Subsection (j) of section 1603 of division B of such Act is amended by striking ``2011'' and inserting ``2013''.

(c) Effective Date.--The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.

(d) Use of Stimulus Funds To Offset Spending.--Notwithstanding section 5 of the American Recovery and Reinvestment Act of 2009, from the amounts appropriated or made available and remaining unobligated under division A of such Act (other than under title X of such division A), the Director of the Office of Management and Budget shall transfer from time to time to the general fund of the Treasury an amount equal to the net increase in spending resulting from the amendments made by this section. The Director of the Office of Management and Budget shall report to each congressional committee the amounts so rescinded within the jurisdiction of such committee.

______

SA 4367. Ms. MURKOWSKI (for herself and Mr. Begich) submitted an amendment intended to be proposed by her to the bill H.R. 4213, to amend the Internal Revenue Code of 1986 to extend certain expiring provisions, and for other purposes; which was ordered to lie on the table; as follows:

At the end, add the following:

TITLE VIII--ALASKA COMMUNITY DEVELOPMENT QUOTA PROGRAM

SEC. 801. SHORT TITLE.

This title may be cited as the ``Western Alaska Community Development Organizations Tax Relief Act''.

SEC. 802. FINDINGS.

Congress finds the following:

(1) In 1990, Congress established a Joint Federal-State Commission on Policies and Programs Affecting Alaska Natives to investigate economic and social conditions in rural Alaska communities that are Native villages for the purposes of the Alaska Native Claims Settlement Act; the Commission reported very high unemployment and widespread poverty.

(2) In 1992, the United States Secretary of Commerce approved Amendment 18 to the Bering Sea and Aleutian Island

(BSAI) Fishery Management Plan creating the Western Alaska Community Development Quota (CDQ) Program to promote the economic development of the 65 villages of the western Alaska region which were organized as six coalitions.

(3) In 1994, the Commission recommended to Congress that it amend the Magnuson-Stevens Fishery Conservation and Management Act to codify the establishment of the CDQ Program and expand the program to include all commercial fisheries that are conducted in the Bering Sea-Aleutian Islands Management Area.

(4) In 1996, Congress implemented the recommendation of the Commission by enacting section 305(i)(1) of the Magnuson-Stevens Fishery Conservation and Management Act subparagraph

(A) of which established the western Alaska community development program--

(A) to provide eligible western Alaska villages with the opportunity to participate and invest in fisheries in the Bering Sea and Aleutian Islands Management Area;

(B) to support economic development in western Alaska;

(D) to achieve sustainable and diversified local economies in western Alaska.

(5) In 2006, Congress, in section 416 of the Conference Report to Coast Guard and Maritime Transportation Act of 2006, stated its intent that ``all activities of the CDQ groups continue to be considered tax-exempt (as has been the practice since the program's inception in 1992) so that the six CDQ groups can more readily address the pressing economic needs of the region''.

(6) The original six coalitions organized as six corporations and are recognized as tax-exempt under either section 501(c)(3) or section 501(c)(4) of the Internal Revenue Code of 1986.

(7) Today, the six CDQ organizations are making important and ongoing contributions to the economic development and the alleviation of poverty in the western Alaska region consistent with the purposes Congress has established for the CDQ Program. As the program was intended, the organizations have become bona fide participants in the BSAI commercial fisheries. The CDQ organizations are using the revenue that their participation generates to create employment and economic development opportunities that would have been impossible in western Alaska prior to the CDQ Program.

(8) The CDQ organizations have paid, and will continue to pay, income tax on income generated from their activities and investments outside of the BSAI area.

(9) Excluding income generated from the CDQ organizations' fishery-related activities and investments inside the BSAI area from unrelated business taxable income is consistent with the intent of Congress.

SEC. 803. CLARIFICATION OF TAX-EXEMPT TREATMENT OF CERTAIN

INCOME OF SIX ALASKA COMMUNITY DEVELOPMENT

QUOTA (CDQ) PROGRAM ORGANIZATIONS.

(a) Clarification.--

(1) In general.--Section 512(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

``(20) Treatment of certain income of six alaska community development quota (cdq) program organizations.--There shall be excluded all income derived from a trade or business carried on by a Community Development Quota entity identified in section 305(i)(1)(D) of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1855(i)(1)(D) participating or investing in the harvesting, processing, transportation, sales, or marketing of fish and fish product in the Bering Sea and Aleutian Islands Management Area if the conduct of such trade or business is in furtherance of one or more of the purposes specified in section 305(i)(1)(A) of such Act. Such excluded income received after the date of the enactment of this paragraph shall be reported by such entity on the annual return required under section 6033 and in any annual report required under section 305(i)(1)(F)(ii) of such Act (16 U.S.C. 1855(i)(1)(F)(ii)).''.

(2) Effective date.--The amendment made by paragraph (1) shall apply to income received before, on, or after the date of the enactment of this Act.

(b) Application to Certain Wholly Owned Subsidiaries.--If the assets of a trade or business described in section 512(b)(20) of the Internal Revenue Code of 1986 (as added by subsection (a)(1)) of any subsidiary wholly owned by a Community Development Quota entity identified in section 305(i)(1)(D) of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1855(i)(1)(D) are transferred to such entity (including in liquidation of such subsidiary) not later than 18 months after the date of the enactment of this Act--

(1) no gain resulting from such transfer shall be recognized to either such subsidiary or such entity under such Code, and

(2) all income derived by such subsidiary from such transferred trade or business shall be exempt from taxation under such Code.

______

SA 4368. Mr. WARNER submitted an amendment intended to be proposed by him to the bill H.R. 4213, to amend the Internal Revenue Code of 1986 to extend certain expiring provisions, and for other purposes; which was ordered to lie on the table; as follows:

At the end of title VI, insert the following:

SEC. __. ELIMINATION OF CERTAIN PROGRAMS RECOMMENDED FOR

TERMINATION.

(a) Findings.--Congress finds the following:

(1) Both the Bush and the Obama administrations have reviewed federal programs in recent years to identify those that are ineffective, outdated, or duplicative.

(2) While funding has been terminated for some of the identified programs, many more continue to receive funding each year.

(3) In particular, 17 programs continue to receive funding, even though the programs have been identified by either the Bush or Obama administrations as being ineffective, outdated, or duplicative and recommended for termination in the budgets of the United States Government for fiscal years 2009, 2010, and 2011.

(4) The need to simultaneously assist families hardest hit by the recession while beginning to reduce the nation's record debt levels requires a renewed emphasis on eliminating unnecessary federal spending.

(b) Rescissions.--Any funds that remain available for obligation as of the date of enactment of this Act for the following programs, projects, activities, portions, or accounts are rescinded:

(1) The high energy cost grant program carried out under section 19 of the Rural Electrification Act of 1936 (7 U.S.C. 918a).

(2) The program of grants to broadcasting systems provided under section 310B(f) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(f)).

(3) The resource conservation and development program established under subtitle H of the Agriculture and Food Act of 1981 (16 U.S.C. 3451 et seq.).

(4) The watershed protection and flood prevention operations carried out under section 14 of the Watershed Protection and Flood Prevention Act (16 U.S.C. 1012).

(5) The public telecommunications facilities, planning, and construction grants under section 392 of the Communications Act of 1934 (47 U.S.C. 392).

(6) The Presidential Academies for Teaching of American History and Civics and the Congressional Academies for Students of American History and Civics under the American History and Civics Education Act of 2004 (20 U.S.C. 6713 note).

(7) The Civic Education Program under subpart 3 of part C of title II of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6711 et seq.).

(8) The Close Up Fellowship Program under section 1504 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6494).

(9) The William F. Goodling Even Start Family Literacy Programs under subpart 3 of part B of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6381 et seq.).

(10) The Foundations for Learning Grants Program under section 5542 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7269a).

(11) The Jacob K. Javits Gifted and Talented Students Education Program under subpart 6 of part D of title V of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7253 et seq.).

(12) The Ready to Teach Program under subpart 8 of part D of title V of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7257).

(13) The portion of the State and Tribal Assistance Grants Account of the Environmental Protection Agency for special project grants and technical corrections to prior-year grants for the construction of drinking water, wastewater, and storm water infrastructure, and for water quality protection, pursuant to section 104 of the Federal Water Pollution Control Act (33 U.S.C. 1254) and section 1442 of the Safe Drinking Water Act (42 U.S.C. 300j-1).

(14) The portion of funding provided by the Health Resources and Services Administration to the Denali Commission (under the Denali Commission Act of 1998 (42 U.S.C. 3121 et seq.)).

(15) The Delta Health Initiative administered by the Office of Rural Health Policy of the Department of Health and Human Services.

(16) The construction and renovation (including equipment) of health care and other facilities and for other health-related activities account for the Health Resources and Services Administration of the Department of Health and Human Services.

(17) The Brownfields Economic Development Initiative under section 108(q) of the Housing and Community Development Act of 1974 (42 U.S.C. 5308(q)).

(c) Terminations.--Notwithstanding any other provision of law, the authority for each program, project, activity, portion, and account listed in subsection (b) is terminated. No additional funds shall be authorized or appropriated for any such program, project, activity, portion, or account.

______

SA 4369. Mr. BAUCUS proposed an amendment to the bill H.R. 4213, to amend the Internal Revenue Code of 1986 to extend certain expiring provisions, and for other purposes; as follows:

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

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

CONTENTS.

(a) Short Title.--This Act may be cited as the ``American Jobs and Closing Tax Loopholes Act of 2010''.

(b) Amendment of 1986 Code.--Except as otherwise expressly provided, whenever in titles I, II, and IV of this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.

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

TITLE I--INFRASTRUCTURE INCENTIVES

Sec. 101. Extension of Build America Bonds. Sec. 102. Exempt-facility bonds for sewage and water supply facilities.

Sec. 103. Extension of exemption from alternative minimum tax treatment for certain tax-exempt bonds.

Sec. 104. Extension and additional allocations of recovery zone bond authority.

Sec. 105. Allowance of new markets tax credit against alternative minimum tax.

Sec. 106. Extension of tax-exempt eligibility for loans guaranteed by

Federal home loan banks.

Sec. 107. Extension of temporary small issuer rules for allocation of tax-exempt interest expense by financial institutions.

TITLE II--EXTENSION OF EXPIRING PROVISIONS

Subtitle A--Energy

Sec. 201. Alternative motor vehicle credit for new qualified hybrid motor vehicles other than passenger automobiles and light trucks.

Sec. 202. Incentives for biodiesel and renewable diesel.

Sec. 203. Credit for electricity produced at certain open-loop biomass facilities.

Sec. 204. Extension and modification of credit for steel industry fuel.

Sec. 205. Credit for producing fuel from coke or coke gas.

Sec. 206. New energy efficient home credit.

Sec. 207. Excise tax credits and outlay payments for alternative fuel and alternative fuel mixtures.

Sec. 208. Special rule for sales or dispositions to implement FERC or

State electric restructuring policy for qualified electric utilities.

Sec. 209. Suspension of limitation on percentage depletion for oil and gas from marginal wells.

Sec. 210. Direct payment of energy efficient appliances tax credit.

Sec. 211. Modification of standards for windows, doors, and skylights with respect to the credit for nonbusiness energy property.

Subtitle B--Individual Tax Relief

PART I--Miscellaneous Provisions

Sec. 221. Deduction for certain expenses of elementary and secondary school teachers.

Sec. 222. Additional standard deduction for State and local real property taxes.

Sec. 223. Deduction of State and local sales taxes.

Sec. 224. Contributions of capital gain real property made for conservation purposes.

Sec. 225. Above-the-line deduction for qualified tuition and related expenses.

Sec. 226. Tax-free distributions from individual retirement plans for charitable purposes.

Sec. 227. Look-thru of certain regulated investment company stock in determining gross estate of nonresidents.

Sec. 228. First-time homebuyer credit.

PART II--Low-income Housing Credits

Sec. 231. Election for direct payment of low-income housing credit for

2010.

Sec. 232. Low-income housing grant election.

Subtitle C--Business Tax Relief

Sec. 241. Research credit.

Sec. 242. Indian employment tax credit.

Sec. 243. New markets tax credit.

Sec. 244. Railroad track maintenance credit.

Sec. 245. Mine rescue team training credit.

Sec. 246. Employer wage credit for employees who are active duty members of the uniformed services.

Sec. 247. 5-year depreciation for farming business machinery and equipment.

Sec. 248. 15-year straight-line cost recovery for qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retail improvements.

Sec. 249. 7-year recovery period for motorsports entertainment complexes.

Sec. 250. Accelerated depreciation for business property on an Indian reservation.

Sec. 251. Enhanced charitable deduction for contributions of food inventory.

Sec. 252. Enhanced charitable deduction for contributions of book inventories to public schools.

Sec. 253. Enhanced charitable deduction for corporate contributions of computer inventory for educational purposes.

Sec. 254. Election to expense mine safety equipment.

Sec. 255. Special expensing rules for certain film and television productions.

Sec. 256. Expensing of environmental remediation costs.

Sec. 257. Deduction allowable with respect to income attributable to domestic production activities in Puerto Rico.

Sec. 258. Modification of tax treatment of certain payments to controlling exempt organizations.

Sec. 259. Exclusion of gain or loss on sale or exchange of certain brownfield sites from unrelated business income.

Sec. 260. Timber REIT modernization.

Sec. 261. Treatment of certain dividends of regulated investment companies.

Sec. 262. RIC qualified investment entity treatment under FIRPTA.

Sec. 263. Exceptions for active financing income.

Sec. 264. Look-thru treatment of payments between related controlled foreign corporations under foreign personal holding company rules.

Sec. 265. Basis adjustment to stock of S corps making charitable contributions of property.

Sec. 266. Empowerment zone tax incentives.

Sec. 267. Tax incentives for investment in the District of Columbia.

Sec. 268. Renewal community tax incentives.

Sec. 269. Temporary increase in limit on cover over of rum excise taxes to Puerto Rico and the Virgin Islands.

Sec. 270. Payment to American Samoa in lieu of extension of economic development credit.

Sec. 271. Election to temporarily utilize unused AMT credits determined by domestic investment.

Sec. 272. Study of extended tax expenditures.

Subtitle D--Temporary Disaster Relief Provisions

PART I--National Disaster Relief

Sec. 281. Waiver of certain mortgage revenue bond requirements.

Sec. 282. Losses attributable to federally declared disasters.

Sec. 283. Special depreciation allowance for qualified disaster property.

Sec. 284. Net operating losses attributable to federally declared disasters.

Sec. 285. Expensing of qualified disaster expenses.

PART II--Regional Provisions

subpart a--new york liberty zone

Sec. 291. Special depreciation allowance for nonresidential and residential real property.

Sec. 292. Tax-exempt bond financing.

subpart b--go zone

Sec. 295. Increase in rehabilitation credit.

Sec. 296. Work opportunity tax credit with respect to certain individuals affected by Hurricane Katrina for employers inside disaster areas.

Sec. 297. Extension of low-income housing credit rules for buildings in

GO zones.

TITLE III--PENSION FUNDING RELIEF

Subtitle A--Single-Employer Plans

Sec. 301. Extended period for single-employer defined benefit plans to amortize certain shortfall amortization bases.

Sec. 302. Application of extended amortization period to plans subject to prior law funding rules.

Sec. 303. Suspension of certain funding level limitations.

Sec. 304. Lookback for credit balance rule.

Sec. 305. Information reporting.

Sec. 306. Rollover of amounts received in airline carrier bankruptcy.

Subtitle B--Multiemployer Plans

Sec. 311. Optional use of 30-year amortization periods.

Sec. 312. Optional longer recovery periods for multiemployer plans in endangered or critical status.

Sec. 313. Modification of certain amortization extensions under prior law.

Sec. 314. Alternative default schedule for plans in endangered or critical status.

Sec. 315. Transition rule for certifications of plan status.

TITLE IV--REVENUE OFFSETS

Subtitle A--Foreign Provisions

Sec. 401. Rules to prevent splitting foreign tax credits from the income to which they relate.

Sec. 402. Denial of foreign tax credit with respect to foreign income not subject to United States taxation by reason of covered asset acquisitions.

Sec. 403. Separate application of foreign tax credit limitation, etc., to items resourced under treaties.

Sec. 404. Limitation on the amount of foreign taxes deemed paid with respect to section 956 inclusions.

Sec. 405. Special rule with respect to certain redemptions by foreign subsidiaries.

Sec. 406. Modification of affiliation rules for purposes of rules allocating interest expense.

Sec. 407. Termination of special rules for interest and dividends received from persons meeting the 80-percent foreign business requirements.

Sec. 408. Source rules for income on guarantees.

Sec. 409. Limitation on extension of statute of limitations for failure to notify Secretary of certain foreign transfers.

Subtitle B--Personal Service Income Earned in Pass-thru Entities

Sec. 411. Partnership interests transferred in connection with performance of services. Sec. 413. Employment tax treatment of professional service businesses.

Subtitle C--Corporate Provisions

Sec. 421. Treatment of securities of a controlled corporation exchanged for assets in certain reorganizations.

Sec. 422. Taxation of boot received in reorganizations.

Subtitle D--Other Provisions

Sec. 431. Modifications with respect to Oil Spill Liability Trust Fund.

Sec. 432. Time for payment of corporate estimated taxes.

Sec. 433. Denial of deduction for punitive damages.

TITLE V--UNEMPLOYMENT, HEALTH, AND OTHER ASSISTANCE

Subtitle A--Unemployment Insurance and Other Assistance

Sec. 501. Extension of unemployment insurance provisions.

Sec. 502. Coordination of emergency unemployment compensation with regular compensation.

Sec. 503. Extension of the Emergency Contingency Fund.

Sec. 504. Requiring States to not reduce regular compensation in order to be eligible for funds under the emergency unemployment compensation program.

Subtitle B--Health Provisions

Sec. 511. Extension of section 508 reclassifications.

Sec. 512. Repeal of delay of RUG-IV.

Sec. 513. Limitation on reasonable costs payments for certain clinical diagnostic laboratory tests furnished to hospital patients in certain rural areas.

Sec. 514. Funding for claims reprocessing.

Sec. 515. Medicaid and CHIP technical corrections.

Sec. 516. Addition of inpatient drug discount program to 340B drug discount program.

Sec. 517. Continued inclusion of orphan drugs in definition of covered outpatient drugs with respect to children's hospitals under the 340B drug discount program.

Sec. 518. Conforming amendment related to waiver of coinsurance for preventive services.

Sec. 519. Establish a CMS-IRS data match to identify fraudulent providers.

Sec. 520. Clarification of effective date of part B special enrollment period for disabled TRICARE beneficiaries.

Sec. 521. Physician payment update.

Sec. 522. Adjustment to Medicare payment localities.

Sec. 523. Clarification of 3-day payment window.

Sec. 524. Extension of ARRA increase in FMAP.

Sec. 525. Clarification for affiliated hospitals for distribution of additional residency positions.

TITLE VI--OTHER PROVISIONS

Sec. 601. Extension of national flood insurance program.

Sec. 602. Allocation of geothermal receipts.

Sec. 603. Small business loan guarantee enhancement extensions.

Sec. 604. Emergency agricultural disaster assistance.

Sec. 605. Summer employment for youth.

Sec. 606. Housing Trust Fund.

Sec. 607. The Individual Indian Money Account Litigation Settlement Act of 2010.

Sec. 608. Appropriation of funds for final settlement of claims from In re Black Farmers Discrimination Litigation.

Sec. 609. Expansion of eligibility for concurrent receipt of military retired pay and veterans' disability compensation to include all chapter 61 disability retirees regardless of disability rating percentage or years of service.

Sec. 610. Extension of use of 2009 poverty guidelines.

Sec. 611. Refunds disregarded in the administration of Federal programs and federally assisted programs.

Sec. 612. State court improvement program.

Sec. 613. Qualifying timber contract options.

Sec. 614. Extension and flexibility for certain allocated surface transportation programs.

Sec. 615. Community College and Career Training Grant Program.

Sec. 616. Extensions of duty suspensions on cotton shirting fabrics and related provisions.

Sec. 617. Modification of Wool Apparel Manufacturers Trust Fund.

Sec. 618. Department of Commerce Study.

Sec. 619. ARRA planning and reporting.

Sec. 620. Amendment of Travel Promotion Act of 2009.

Sec. 621. Limitation on penalty for failure to disclose reportable transactions based on resulting tax benefits.

Sec. 622. Report on tax shelter penalties and certain other enforcement actions.

TITLE VII--TRANSPARENCY REQUIREMENTS FOR FOREIGN-HELD DEBT

Sec. 701. Short title.

Sec. 702. Definitions.

Sec. 703. Sense of Congress.

Sec. 704. Quarterly report on risks posed by foreign holdings of debt instruments of the United States.

Sec. 705. Annual report on risks posed by the Federal debt of the

United States.

Sec. 706. Corrective action to address unacceptable and unsustainable risks to United States national security and economic stability.

TITLE VIII--TRANSPARENCY REQUIREMENTS FOR FOREIGN-HELD DEBT

Sec. 801. Short title.

Sec. 802. Definitions.

Sec. 803. Sense of Congress.

Sec. 804. Annual report on risks posed by foreign holdings of debt instruments of the United States.

Sec. 805. Annual report on risks posed by the Federal debt of the

United States.

Sec. 806. Corrective action to address unacceptable risks to United

States national security and economic stability.

TITLE IX--OFFICE OF THE HOMEOWNER ADVOCATE

Sec. 901. Office of the Homeowner Advocate.

Sec. 902. Functions of the Office.

Sec. 903. Relationship with existing entities.

Sec. 904. Rule of construction.

Sec. 905. Reports to Congress.

Sec. 906. Funding.

Sec. 907. Prohibition on participation in Making Home Affordable for borrowers who strategically default.

Sec. 908. Public availability of information.

TITLE X--BUDGETARY PROVISIONS

Sec. 1001. Budgetary provisions.

TITLE I--INFRASTRUCTURE INCENTIVES

SEC. 101. EXTENSION OF BUILD AMERICA BONDS.

(a) In General.--Subparagraph (B) of section 54AA(d)(1) is amended by striking ``January 1, 2011'' and inserting

``January 1, 2013''.

(b) Extension of Payments to Issuers.--

(1) In general.--Section 6431 is amended--

(A) by striking ``January 1, 2011'' in subsection (a) and inserting ``January 1, 2013''; and

(B) by striking ``January 1, 2011'' in subsection (f)(1)(B) and inserting ``a particular date''.

(2) Conforming amendments.--Subsection (g) of section 54AA is amended--

(A) by striking ``January 1, 2011'' and inserting ``January 1, 2013''; and

(B) by striking ``Qualified Bonds Issued Before 2011'' in the heading and inserting ``Certain Qualified Bonds''.

(1) by striking ``The Secretary'' and inserting the following:

``(1) In general.--The Secretary'';

(2) by striking ``35 percent'' and inserting ``the applicable percentage''; and

(3) by adding at the end the following new paragraph:

``(2) Applicable percentage.--For purposes of this subsection, the term `applicable percentage' means the percentage determined in accordance with the following table:

------------------------------------------------------------------------

``In the case of a qualified bond issued The applicable percentage

during calendar year: is:

------------------------------------------------------------------------

2009 or 2010.............................. 35 percent

2011...................................... 32 percent

2012...................................... 30 percent.''.

------------------------------------------------------------------------

(d) Current Refundings Permitted.--Subsection (g) of section 54AA is amended by adding at the end the following new paragraph:

``(3) Treatment of current refunding bonds.--

``(A) In general.--For purposes of this subsection, the term `qualified bond' includes any bond (or series of bonds) issued to refund a qualified bond if--

``(i) the average maturity date of the issue of which the refunding bond is a part is not later than the average maturity date of the bonds to be refunded by such issue,

``(ii) the amount of the refunding bond does not exceed the outstanding amount of the refunded bond, and

``(iii) the refunded bond is redeemed not later than 90 days after the date of the issuance of the refunding bond.

``(B) Applicable percentage.--In the case of a refunding bond referred to in subparagraph (A), the applicable percentage with respect to such bond under section 6431(b) shall be the lowest percentage specified in paragraph (2) of such section.

``(C) Determination of average maturity.--For purposes of subparagraph (A)(i), average maturity shall be determined in accordance with section 147(b)(2)(A).''.

(e) Clarification Related to Levees and Flood Control Projects.--Subparagraph (A) of section 54AA(g)(2) is amended by inserting ``(including capital expenditures for levees and other flood control projects)'' after ``capital expenditures''.

SEC. 102. EXEMPT-FACILITY BONDS FOR SEWAGE AND WATER SUPPLY

FACILITIES.

(a) Bonds for Water and Sewage Facilities Exempt From Volume Cap on Private Activity Bonds.--

(1) In general.--Paragraph (3) of section 146(g) is amended by inserting ``(4), (5),'' after ``(2),''.

(2) Conforming amendment.--Paragraphs (2) and (3)(B) of section 146(k) are both amended by striking ``(4), (5),

(6),'' and inserting ``(6)''.

(b) Tax-exempt Issuance by Indian Tribal Governments.--

(1) In general.--Subsection (c) of section 7871 is amended by adding at the end the following new paragraph:

``(4) Exception for bonds for water and sewage facilities.--Paragraph (2) shall not apply to an exempt facility bond 95 percent or more of the net proceeds (as defined in section 150(a)(3)) of which are to be used to provide facilities described in paragraph (4) or (5) of section 142(a).''.

(2) Conforming amendment.--Paragraph (2) of section 7871(c) is amended by striking ``paragraph (3)'' and inserting

``paragraphs (3) and (4)''.

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

SEC. 103. EXTENSION OF EXEMPTION FROM ALTERNATIVE MINIMUM TAX

TREATMENT FOR CERTAIN TAX-EXEMPT BONDS.

(a) In General.--Clause (vi) of section 57(a)(5)(C) is amended--

(1) by striking ``January 1, 2011'' in subclause (I) and inserting ``January 1, 2012''; and

(2) by striking ``and 2010'' in the heading and inserting

``, 2010, and 2011''.

(b) Adjusted Current Earnings.--Clause (iv) of section 56(g)(4)(B) is amended--

(1) by striking ``January 1, 2011'' in subclause (I) and inserting ``January 1, 2012''; and

(2) by striking ``and 2010'' in the heading and inserting

``, 2010, and 2011''.

SEC. 104. EXTENSION AND ADDITIONAL ALLOCATIONS OF RECOVERY

ZONE BOND AUTHORITY.

(a) Extension of Recovery Zone Bond Authority.--Section 1400U-2(b)(1) and section 1400U-3(b)(1)(B) are each amended by striking ``January 1, 2011'' and inserting ``January 1, 2012''.

(b) Additional Allocations of Recovery Zone Bond Authority Based on Unemployment.--Section 1400U-1 is amended by adding at the end the following new subsection:

``(c) Allocation of 2010 Recovery Zone Bond Limitations Based on Unemployment.--

``(1) In general.--The Secretary shall allocate the 2010 national recovery zone economic development bond limitation and the 2010 national recovery zone facility bond limitation among the States in the proportion that each such State's 2009 unemployment number bears to the aggregate of the 2009 unemployment numbers for all of the States.

``(2) Minimum allocation.--The Secretary shall adjust the allocations under paragraph (1) for each State to the extent necessary to ensure that no State (prior to any reduction under paragraph (3)) receives less than 0.9 percent of the 2010 national recovery zone economic development bond limitation and 0.9 percent of the 2010 national recovery zone facility bond limitation.

``(3) Allocations by states.--

``(A) In general.--Each State with respect to which an allocation is made under paragraph (1) shall reallocate such allocation among the counties and large municipalities (as defined in subsection (a)(3)(B)) in such State in the proportion that each such county's or municipality's 2009 unemployment number bears to the aggregate of the 2009 unemployment numbers for all the counties and large municipalities (as so defined) in such State.

``(B) 2010 allocation reduced by amount of previous allocation.--Each State shall reduce (but not below zero)--

``(i) the amount of the 2010 national recovery zone economic development bond limitation allocated to each county or large municipality (as so defined) in such State by the amount of the national recovery zone economic development bond limitation allocated to such county or large municipality under subsection (a)(3)(A) (determined without regard to any waiver thereof), and

``(ii) the amount of the 2010 national recovery zone facility bond limitation allocated to each county or large municipality (as so defined) in such State by the amount of the national recovery zone facility bond limitation allocated to such county or large municipality under subsection

(a)(3)(A) (determined without regard to any waiver thereof).

``(C) Waiver of suballocations.--A county or municipality may waive any portion of an allocation made under this paragraph. A county or municipality shall be treated as having waived any portion of an allocation made under this paragraph which has not been allocated to a bond issued before May 1, 2011. Any allocation waived (or treated as waived) under this subparagraph may be used or reallocated by the State.

``(D) Special rule for a municipality in a county.--In the case of any large municipality any portion of which is in a county, such portion shall be treated as part of such municipality and not part of such county.

``(4) 2009 unemployment number.--For purposes of this subsection, the term `2009 unemployment number' means, with respect to any State, county or municipality, the number of individuals in such State, county, or municipality who were determined to be unemployed by the Bureau of Labor Statistics for December 2009.

``(5) 2010 national limitations.--

``(A) Recovery zone economic development bonds.--The 2010 national recovery zone economic development bond limitation is $10,000,000,000. Any allocation of such limitation under this subsection shall be treated for purposes of section 1400U-2 in the same manner as an allocation of national recovery zone economic development bond limitation.

``(B) Recovery zone facility bonds.--The 2010 national recovery zone facility bond limitation is $15,000,000,000. Any allocation of such limitation under this subsection shall be treated for purposes of section 1400U-3 in the same manner as an allocation of national recovery zone facility bond limitation.''.

(c) Authority of State to Waive Certain 2009 Allocations.--Subparagraph (A) of section 1400U-1(a)(3) is amended by adding at the end the following: ``A county or municipality shall be treated as having waived any portion of an allocation made under this subparagraph which has not been allocated to a bond issued before May 1, 2011. Any allocation waived (or treated as waived) under this subparagraph may be used or reallocated by the State.''.

SEC. 105. ALLOWANCE OF NEW MARKETS TAX CREDIT AGAINST

ALTERNATIVE MINIMUM TAX.

(a) In General.--Subparagraph (B) of section 38(c)(4), as amended by the Patient Protection and Affordable Care Act, is amended by redesignating clauses (v) through (ix) as clauses

(vi) through (x), respectively, and by inserting after clause

(iv) the following new clause:

``(v) the credit determined under section 45D, but only with respect to credits determined with respect to qualified equity investments (as defined in section 45D(b)) initially made before January 1, 2012,''.

(b) Effective Date.--The amendments made by this section shall apply to credits determined with respect to qualified equity investments (as defined in section 45D(b) of the Internal Revenue Code of 1986) initially made after March 15, 2010.

SEC. 106. EXTENSION OF TAX-EXEMPT ELIGIBILITY FOR LOANS

GUARANTEED BY FEDERAL HOME LOAN BANKS.

Clause (iv) of section 149(b)(3)(A) is amended by striking

``December 31, 2010'' and inserting ``December 31, 2011''.

SEC. 107. EXTENSION OF TEMPORARY SMALL ISSUER RULES FOR

ALLOCATION OF TAX-EXEMPT INTEREST EXPENSE BY

FINANCIAL INSTITUTIONS.

(a) In General.--Clauses (i), (ii), and (iii) of section 265(b)(3)(G) are each amended by striking ``or 2010'' and inserting ``, 2010, or 2011''.

(b) Conforming Amendment.--Subparagraph (G) of section 265(b)(3) is amended by striking ``and 2010'' in the heading and inserting ``, 2010, and 2011''.

TITLE II--EXTENSION OF EXPIRING PROVISIONS

Subtitle A--Energy

SEC. 201. ALTERNATIVE MOTOR VEHICLE CREDIT FOR NEW QUALIFIED

HYBRID MOTOR VEHICLES OTHER THAN PASSENGER

AUTOMOBILES AND LIGHT TRUCKS.

(a) In General.--Paragraph (3) of section 30B(k) is amended by striking ``December 31, 2009'' and inserting ``December 31, 2010''.

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

SEC. 202. INCENTIVES FOR BIODIESEL AND RENEWABLE DIESEL.

(a) Credits for Biodiesel and Renewable Diesel Used as Fuel.--Subsection (g) of section 40A is amended by striking

``December 31, 2009'' and inserting ``December 31, 2010''.

(b) Excise Tax Credits and Outlay Payments for Biodiesel and Renewable Diesel Fuel Mixtures.--

(1) Paragraph (6) of section 6426(c) is amended by striking

``December 31, 2009'' and inserting ``December 31, 2010''.

(2) Subparagraph (B) of section 6427(e)(6) is amended by striking ``December 31, 2009'' and inserting ``December 31, 2010''.

SEC. 203. CREDIT FOR ELECTRICITY PRODUCED AT CERTAIN OPEN-

LOOP BIOMASS FACILITIES.

(a) In General.--Clause (ii) of section 45(b)(4)(B) is amended--

(1) by striking ``5-year period'' and inserting ``6-year period''; and

(2) by adding at the end the following: ``In the case of the last year of the 6-year period described in the preceding sentence, the credit determined under subsection (a) with respect to electricity produced during such year shall not exceed 80 percent of such credit determined without regard to this sentence.''.

(b) Effective Date.--The amendment made by this section shall apply to electricity produced and sold after December 31, 2009.

SEC. 204. EXTENSION AND MODIFICATION OF CREDIT FOR STEEL

INDUSTRY FUEL.

(a) Credit Period.--

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

``(II) Credit period.--In lieu of the 10-year period referred to in clauses (i) and (ii)(II) of subparagraph (A), the credit period shall be the period beginning on the date that the facility first produces steel industry fuel that is sold to an unrelated person after September 30, 2008, and ending 2 years after such date.''.

(2) Conforming amendment.--Section 45(e)(8)(D) is amended by striking clause (iii) and by redesignating clause (iv) as clause (iii).

(b) Extension of Placed-in-service Date.--Subparagraph (A) of section 45(d)(8) is amended--

(1) by striking ``(or any modification to a facility)''; and

(2) by striking ``2010'' and inserting ``2011''.

(1) Steel industry fuel.--Subclause (I) of section 45(c)(7)(C)(i) is amended by inserting ``, a blend of coal and petroleum coke, or other coke feedstock'' after ``on coal''.

(2) Ownership interest.--Section 45(d)(8) is amended by adding at the end the following new flush sentence:

``With respect to a facility producing steel industry fuel, no person (including a ground lessor, customer, supplier, or technology licensor) shall be treated as having an ownership interest in the facility or as otherwise entitled to the credit allowable under subsection (a) with respect to such facility if such person's rent, license fee, or other entitlement to net payments from the owner of such facility is measured by a fixed dollar amount or a fixed amount per ton, or otherwise determined without regard to the profit or loss of such facility.''.

(3) Production and sale.--Subparagraph (D) of section 45(e)(8), as amended by subsection (a)(2), is amended by redesignating clause (iii) as clause (iv) and by inserting after clause (ii) the following new clause:

``(iii) Production and sale.--The owner of a facility producing steel industry fuel shall be treated as producing and selling steel industry fuel where that owner manufactures such steel industry fuel from coal, a blend of coal and petroleum coke, or other coke feedstock to which it has title. The sale of such steel industry fuel by the owner of the facility to a person who is not the owner of the facility shall not fail to qualify as a sale to an unrelated person solely because such purchaser may also be a ground lessor, supplier, or customer.''.

(d) Specified Credit for Purposes of Alternative Minimum Tax Exclusion.--Subclause (II) of section 38(c)(4)(B)(iii) is amended by inserting ``(in the case of a refined coal production facility producing steel industry fuel, during the credit period set forth in section 45(e)(8)(D)(ii)(II))'' after ``service''.

(e) Effective Dates.--

(1) In general.--The amendments made by subsections (a),

(b), and (d) shall apply to fuel produced and sold after September 30, 2008.

(2) Clarifications.--The amendments made by subsection (c) shall take effect as if included in the amendments made by the Energy Improvement and Extension Act of 2008.

SEC. 205. CREDIT FOR PRODUCING FUEL FROM COKE OR COKE GAS.

(a) In General.--Paragraph (1) of section 45K(g) is amended by striking ``January 1, 2010'' and inserting ``January 1, 2011''.

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

SEC. 206. NEW ENERGY EFFICIENT HOME CREDIT.

(a) In General.--Subsection (g) of section 45L is amended by striking ``December 31, 2009'' and inserting ``December 31, 2010''.

(b) Effective Date.--The amendment made by this section shall apply to homes acquired after December 31, 2009.

SEC. 207. EXCISE TAX CREDITS AND OUTLAY PAYMENTS FOR

ALTERNATIVE FUEL AND ALTERNATIVE FUEL MIXTURES.

(a) Alternative Fuel Credit.--Paragraph (5) of section 6426(d) is amended by striking ``after December 31, 2009'' and all that follows and inserting ``after--

``(A) September 30, 2014, in the case of liquefied hydrogen,

``(B) December 31, 2010, in the case of fuels described in subparagraph (A), (C), (F), or (G) of paragraph (2), and

``(C) December 31, 2009, in any other case.''.

(b) Alternative Fuel Mixture Credit.--Paragraph (3) of section 6426(e) is amended by striking ``after December 31, 2009'' and all that follows and inserting ``after--

``(A) September 30, 2014, in the case of liquefied hydrogen,

``(B) December 31, 2010, in the case of fuels described in subparagraph (A), (C), (F), or (G) of subsection (d)(2), and

``(C) December 31, 2009, in any other case.''.

(1) In general.--Paragraph (6) of section 6427(e) is amended by striking ``and'' at the end of subparagraph (C), by striking the period at the end of subparagraph (D) and inserting ``, and'', and by adding at the end the following new subparagraph:

``(E) any alternative fuel or alternative fuel mixture (as so defined) involving fuel described in subparagraph (A),

(C), (F), or (G) of section 6426(d)(2) sold or used after December 31, 2010.''.

(2) Conforming amendment.--Subparagraph (C) of section 6427(e)(6) is amended by inserting ``or (E)'' after

``subparagraph (D)''.

(d) Exclusion of Black Liquor From Credit Eligibility.--The last sentence of section 6426(d)(2) is amended by striking

``or biodiesel'' and inserting ``biodiesel, or any fuel

(including lignin, wood residues, or spent pulping liquors) derived from the production of paper or pulp''.

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

SEC. 208. SPECIAL RULE FOR SALES OR DISPOSITIONS TO IMPLEMENT

FERC OR STATE ELECTRIC RESTRUCTURING POLICY FOR

QUALIFIED ELECTRIC UTILITIES.

(a) In General.--Paragraph (3) of section 451(i) is amended by striking ``January 1, 2010'' and inserting ``January 1, 2011''.

(b) Modification of Definition of Independent Transmission Company.--

(1) In general.--Clause (i) of section 451(i)(4)(B) is amended to read as follows:

``(i) who the Federal Energy Regulatory Commission determines in its authorization of the transaction under section 203 of the Federal Power Act (16 U.S.C. 824b) or by declaratory order--

``(I) is not itself a market participant as determined by the Commission, and also is not controlled by any such market participant, or

``(II) to be independent from market participants or to be an independent transmission company within the meaning of such Commission's rules applicable to independent transmission providers, and''.

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

``For purposes of subparagraph (B)(i)(I), a person shall be treated as controlled by another person if such persons would be treated as a single employer under section 52.''.

(1) In general.--The amendment made by subsection (a) shall apply to dispositions after December 31, 2009.

(2) Modifications.--The amendments made by subsection (b) shall apply to dispositions after the date of the enactment of this Act.

SEC. 209. SUSPENSION OF LIMITATION ON PERCENTAGE DEPLETION

FOR OIL AND GAS FROM MARGINAL WELLS.

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

``January 1, 2011''.

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

SEC. 210. DIRECT PAYMENT OF ENERGY EFFICIENT APPLIANCES TAX

CREDIT.

In the case of any taxable year which includes the last day of calendar year 2009 or calendar year 2010, a taxpayer who elects to waive the credit which would otherwise be determined with respect to the taxpayer under section 45M of the Internal Revenue Code of 1986 for such taxable year shall be treated as making a payment against the tax imposed under subtitle A of such Code for such taxable year in an amount equal to 85 percent of the amount of the credit which would otherwise be so determined. Such payment shall be treated as made on the later of the due date of the return of such tax or the date on which such return is filed. Elections under this section may be made separately for 2009 and 2010, but once made shall be irrevocable. No amount shall be includible in gross income or alternative minimum taxable income by reason of this section.

SEC. 211. MODIFICATION OF STANDARDS FOR WINDOWS, DOORS, AND

SKYLIGHTS WITH RESPECT TO THE CREDIT FOR

NONBUSINESS ENERGY PROPERTY.

(a) In General.--Paragraph (4) of section 25C(c) is amended by striking ``unless'' and all that follows and inserting

``unless--

``(A) in the case of any component placed in service after the date which is 90 days after the date of the enactment of the American Jobs and Closing Tax Loopholes Act of 2010, such component meets the criteria for such components established by the 2010 Energy Star Program Requirements for Residential Windows, Doors, and Skylights, Version 5.0 (or any subsequent version of such requirements which is in effect after January 4, 2010),

``(B) in the case of any component placed in service after the date of the enactment of the American Jobs and Closing Tax Loopholes Act of 2010 and on or before the date which is 90 days after such date, such component meets the criteria described in subparagraph (A) or is equal to or below a U factor of 0.30 and SHGC of 0.30, and

``(C) in the case of any component which is a garage door, such component is equal to or below a U factor of 0.30 and SHGC of 0.30.''.

(b) Effective Date.--The amendment made by this section shall apply to property placed in service after the date of the enactment of this Act.

Subtitle B--Individual Tax Relief

PART I--MISCELLANEOUS PROVISIONS

SEC. 221. DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY AND

SECONDARY SCHOOL TEACHERS.

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

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

SEC. 222. ADDITIONAL STANDARD DEDUCTION FOR STATE AND LOCAL

REAL PROPERTY TAXES.

(a) In General.--Subparagraph (C) of section 63(c)(1) is amended by striking ``or 2009'' and inserting ``2009, or 2010''.

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

SEC. 223. DEDUCTION OF STATE AND LOCAL SALES TAXES.

(a) In General.--Subparagraph (I) of section 164(b)(5) is amended by striking ``January 1, 2010'' and inserting

``January 1, 2011''.

(b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2009. SEC. 224. CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY MADE

FOR CONSERVATION PURPOSES.

(a) In General.--Clause (vi) of section 170(b)(1)(E) is amended by striking ``December 31, 2009'' and inserting

``December 31, 2010''.

(b) Contributions by Certain Corporate Farmers and Ranchers.--Clause (iii) of section 170(b)(2)(B) is amended by striking ``December 31, 2009'' and inserting ``December 31, 2010''.

(c) Effective Date.--The amendments made by this section shall apply to contributions made in taxable years beginning after December 31, 2009.

SEC. 225. ABOVE-THE-LINE DEDUCTION FOR QUALIFIED TUITION AND

RELATED EXPENSES.

(a) In General.--Subsection (e) of section 222 is amended by striking ``December 31, 2009'' and inserting ``December 31, 2010''.

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

(c) Temporary Coordination With Hope and Lifetime Learning Credits.--In the case of any taxpayer for any taxable year beginning in 2010, no deduction shall be allowed under section 222 of the Internal Revenue Code of 1986 if--

(1) the taxpayer's net Federal income tax reduction which would be attributable to such deduction for such taxable year, is less than

(2) the credit which would be allowed to the taxpayer for such taxable year under section 25A of such Code (determined without regard to sections 25A(e) and 26 of such Code).

SEC. 226. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT

PLANS FOR CHARITABLE PURPOSES.

(a) In General.--Subparagraph (F) of section 408(d)(8) is amended by striking ``December 31, 2009'' and inserting

``December 31, 2010''.

(b) Effective Date.--The amendment made by this section shall apply to distributions made in taxable years beginning after December 31, 2009.

SEC. 227. LOOK-THRU OF CERTAIN REGULATED INVESTMENT COMPANY

STOCK IN DETERMINING GROSS ESTATE OF

NONRESIDENTS.

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

``December 31, 2010''.

(b) Effective Date.--The amendment made by this section shall apply to estates of decedents dying after December 31, 2009.

SEC. 228. FIRST-TIME HOMEBUYER CREDIT.

(a) In General.--Paragraph (2) of section 36(h) is amended by striking ``paragraph (1) shall be applied by substituting

`July 1, 2010' '' and inserting ``and who purchases such residence before October 1, 2010, paragraph (1) shall be applied by substituting `October 1, 2010' ''.

(b) Conforming Amendment.--Subparagraph (B) of section 36(h)(3) is amended by inserting ``and for `October 1, 2010'

'' after ``for `July 1, 2010' ''.

(c) Effective Date.--The amendments made by subsections (a) and (b) shall apply to residences purchased after June 30, 2010.

PART II--LOW-INCOME HOUSING CREDITS

SEC. 231. ELECTION FOR DIRECT PAYMENT OF LOW-INCOME HOUSING

CREDIT FOR 2010.

(a) In General.--Section 42 is amended by redesignating subsection (n) as subsection (o) and by inserting after subsection (m) the following new subsection:

``(n) Election for Direct Payment of Credit.--

``(1) In general.--The housing credit agency of each State shall be allowed a credit in an amount equal to such State's 2010 low-income housing refundable credit election amount, which shall be payable by the Secretary as provided in paragraph (5).

``(2) 2010 low-income housing refundable credit election amount.--For purposes of this subsection, the term `2010 low-income housing refundable credit election amount' means, with respect to any State, such amount as the State may elect which does not exceed 85 percent of the product of--

``(A) the sum of--

``(i) 100 percent of the State housing credit ceiling for 2010 which is attributable to amounts described in clauses

(i) and (iii) of subsection (h)(3)(C), plus any credits returned to the State attributable to section 1400N(c)

(including credits made available under such section as applied by reason of sections 702(d)(2) and 704(b) of the Tax Extenders and Alternative Minimum Tax Relief Act of 2008), and

``(ii) 40 percent of the State housing credit ceiling for 2010 which is attributable to amounts described in clauses

(ii) and (iv) of such subsection, plus any credits for 2010 attributable to the application of such section 702(d)(2) and 704(b), multiplied by

``(B) 10.

For purposes of subparagraph (A)(ii), in the case of any area to which section 702(d)(2) or 704(b) of the Tax Extenders and Alternative Minimum Tax Relief Act of 2008 applies, section 1400N(c)(1)(A) shall be applied without regard to clause (i)

``(3) Coordination with non-refundable credit.--For purposes of this section, the amounts described in clauses

(i) through (iv) of subsection (h)(3)(C) with respect to any State for 2010 shall each be reduced by so much of such amount as is taken into account in determining the amount of the credit allowed with respect to such State under paragraph

(1).

``(4) Special rule for basis.--Basis of a qualified low-income building shall not be reduced by the amount of any payment made under this subsection.

``(5) Payment of credit; use to finance low-income buildings.--The Secretary shall pay to the housing credit agency of each State an amount equal to the credit allowed under paragraph (1). Rules similar to the rules of subsections (c) and (d) of section 1602 of the American Recovery and Reinvestment Tax Act of 2009 shall apply with respect to any payment made under this paragraph, except that such subsection (d) shall be applied by substituting `January 1, 2012' for `January 1, 2011'.''.

(b) Conforming Amendment.--Section 1324(b)(2) of title 31, United States Code, is amended by inserting ``42(n),'' after

``36C,''.

SEC. 232. LOW-INCOME HOUSING GRANT ELECTION.

(a) Clarification of Eligibility of Low-income Housing Credits for Low-income Housing Grant Election.--Paragraph (1) of section 1602(b) of the American Recovery and Reinvestment Tax Act of 2009 is amended--

(1) by inserting ``, plus any increase for 2009 or 2010 attributable to section 1400N(c) of such Code (including credits made available under such section as applied by reason of sections 702(d)(2) and 704(b) of the Tax Extenders and Alternative Minimum Tax Relief Act of 2008)'' after

``1986'' in subparagraph (A), and

(2) by inserting ``, plus any credits for 2009 attributable to the application of such section 702(d)(2) and 704(b)'' after ``such section'' in subparagraph (B).

(b) Application of Additional Housing Credit Amount for Purposes of 2009 Grant Election.--Subsection (b) of section 1602 of the American Recovery and Reinvestment Tax Act of 2009, as amended by subsection (a), is amended by adding at the end the following flush sentence:

``For purposes of paragraph (1)(B), in the case of any area to which section 702(d)(2) or 704(b) of the Tax Extenders and Alternative Minimum Tax Relief Act of 2008 applies, section 1400N(c)(1)(A) of such Code shall be applied without regard to clause (i).''.

(c) Effective Date.--The amendments made by this section shall apply as if included in the enactment of section 1602 of the American Recovery and Reinvestment Tax Act of 2009.

Subtitle C--Business Tax Relief

SEC. 241. RESEARCH CREDIT.

(a) In General.--Subparagraph (B) of section 41(h)(1) is amended by striking ``December 31, 2009'' and inserting

``December 31, 2010''.

(b) Conforming Amendment.--Subparagraph (D) of section 45C(b)(1) is amended by striking ``December 31, 2009'' and inserting ``December 31, 2010''.

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

SEC. 242. INDIAN EMPLOYMENT TAX CREDIT.

(a) In General.--Subsection (f) of section 45A is amended by striking ``December 31, 2009'' and inserting ``December 31, 2010''.

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

SEC. 243. NEW MARKETS TAX CREDIT.

(a) In General.--Subparagraph (F) of section 45D(f)(1) is amended by inserting ``and 2010'' after ``2009''.

(b) Conforming Amendment.--Paragraph (3) of section 45D(f) is amended by striking ``2014'' and inserting ``2015''.

SEC. 244. RAILROAD TRACK MAINTENANCE CREDIT.

(a) In General.--Subsection (f) of section 45G is amended by striking ``January 1, 2010'' and inserting ``January 1, 2011''.

(b) Effective Date.--The amendment made by this section shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2009.

SEC. 245. MINE RESCUE TEAM TRAINING CREDIT.

(a) In General.--Subsection (e) of section 45N is amended by striking ``December 31, 2009'' and inserting ``December 31, 2010''.

(b) Credit Allowable Against AMT.--Subparagraph (B) of section 38(c)(4), as amended by section 105, is amended--

(1) by redesignating clauses (vii) through (x) as clauses

(viii) through (xi), respectively; and

(2) by inserting after clause (vi) the following new clause:

``(vii) the credit determined under section 45N,''.

(1) In general.--Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 2009.

(2) Allowance against amt.--The amendments made by subsection (b) shall apply to credits determined for taxable years beginning after December 31, 2009, and to carrybacks of such credits.

SEC. 246. EMPLOYER WAGE CREDIT FOR EMPLOYEES WHO ARE ACTIVE

DUTY MEMBERS OF THE UNIFORMED SERVICES.

(a) In General.--Subsection (f) of section 45P is amended by striking ``December 31, 2009'' and inserting ``December 31, 2010''.

(b) Effective Date.--The amendment made by this section shall apply to payments made after December 31, 2009. SEC. 247. 5-YEAR DEPRECIATION FOR FARMING BUSINESS MACHINERY

AND EQUIPMENT.

(a) In General.--Clause (vii) of section 168(e)(3)(B) is amended by striking ``January 1, 2010'' and inserting

``January 1, 2011''.

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

SEC. 248. 15-YEAR STRAIGHT-LINE COST RECOVERY FOR QUALIFIED

LEASEHOLD IMPROVEMENTS, QUALIFIED RESTAURANT

BUILDINGS AND IMPROVEMENTS, AND QUALIFIED

RETAIL IMPROVEMENTS.

(a) In General.--Clauses (iv), (v), and (ix) of section 168(e)(3)(E) are each amended by striking ``January 1, 2010'' and inserting ``January 1, 2011''.

(b) Conforming Amendments.--

(1) Clause (i) of section 168(e)(7)(A) is amended by striking ``if such building is placed in service after December 31, 2008, and before January 1, 2010,''.

(2) Paragraph (8) of section 168(e) is amended by striking subparagraph (E).

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

SEC. 249. 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS

ENTERTAINMENT COMPLEXES.

(a) In General.--Subparagraph (D) of section 168(i)(15) is amended by striking ``December 31, 2009'' and inserting

``December 31, 2010''.

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

SEC. 250. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY ON

AN INDIAN RESERVATION.

(a) In General.--Paragraph (8) of section 168(j) is amended by striking ``December 31, 2009'' and inserting ``December 31, 2010''.

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

SEC. 251. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF

FOOD INVENTORY.

(a) In General.--Clause (iv) of section 170(e)(3)(C) is amended by striking ``December 31, 2009'' and inserting

``December 31, 2010''.

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

SEC. 252. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF

BOOK INVENTORIES TO PUBLIC SCHOOLS.

(a) In General.--Clause (iv) of section 170(e)(3)(D) is amended by striking ``December 31, 2009'' and inserting

``December 31, 2010''.

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

SEC. 253. ENHANCED CHARITABLE DEDUCTION FOR CORPORATE

CONTRIBUTIONS OF COMPUTER INVENTORY FOR

EDUCATIONAL PURPOSES.

(a) In General.--Subparagraph (G) of section 170(e)(6) is amended by striking ``December 31, 2009'' and inserting

``December 31, 2010''.

(b) Effective Date.--The amendment made by this section shall apply to contributions made in taxable years beginning after December 31, 2009.

SEC. 254. ELECTION TO EXPENSE MINE SAFETY EQUIPMENT.

(a) In General.--Subsection (g) of section 179E is amended by striking ``December 31, 2009'' and inserting ``December 31, 2010''.

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

SEC. 255. SPECIAL EXPENSING RULES FOR CERTAIN FILM AND

TELEVISION PRODUCTIONS.

(a) In General.--Subsection (f) of section 181 is amended by striking ``December 31, 2009'' and inserting ``December 31, 2010''.

(b) Effective Date.--The amendment made by this section shall apply to productions commencing after December 31, 2009.

SEC. 256. EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.

(a) In General.--Subsection (h) of section 198 is amended by striking ``December 31, 2009'' and inserting ``December 31, 2010''.

(b) Effective Date.--The amendment made by this section shall apply to expenditures paid or incurred after December 31, 2009.

SEC. 257. DEDUCTION ALLOWABLE WITH RESPECT TO INCOME

ATTRIBUTABLE TO DOMESTIC PRODUCTION ACTIVITIES

IN PUERTO RICO.

(a) In General.--Subparagraph (C) of section 199(d)(8) is amended--

(1) by striking ``first 4 taxable years'' and inserting

``first 5 taxable years''; and

(2) by striking ``January 1, 2010'' and inserting ``January 1, 2011''.

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

SEC. 258. MODIFICATION OF TAX TREATMENT OF CERTAIN PAYMENTS

TO CONTROLLING EXEMPT ORGANIZATIONS.

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

``December 31, 2010''.

(b) Effective Date.--The amendment made by this section shall apply to payments received or accrued after December 31, 2009.

SEC. 259. EXCLUSION OF GAIN OR LOSS ON SALE OR EXCHANGE OF

CERTAIN BROWNFIELD SITES FROM UNRELATED

BUSINESS INCOME.

(a) In General.--Subparagraph (K) of section 512(b)(19) is amended by striking ``December 31, 2009'' and inserting

``December 31, 2010''.

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

SEC. 260. TIMBER REIT MODERNIZATION.

(a) In General.--Paragraph (8) of section 856(c) is amended by striking ``means'' and all that follows and inserting

``means December 31, 2010.''.

(b) Conforming Amendments.--

(1) Subparagraph (I) of section 856(c)(2) is amended by striking ``the first taxable year beginning after the date of the enactment of this subparagraph'' and inserting ``a taxable year beginning on or before the termination date''.

(2) Clause (iii) of section 856(c)(5)(H) is amended by inserting ``in taxable years beginning'' after

``dispositions''.

(3) Clause (v) of section 857(b)(6)(D) is amended by inserting ``in a taxable year beginning'' after ``sale''.

(4) Subparagraph (G) of section 857(b)(6) is amended by inserting ``in a taxable year beginning'' after ``In the case of a sale''.

SEC. 261. TREATMENT OF CERTAIN DIVIDENDS OF REGULATED

INVESTMENT COMPANIES.

(a) In General.--Paragraphs (1)(C) and (2)(C) of section 871(k) are each amended by striking ``December 31, 2009'' and inserting ``December 31, 2010''.

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

SEC. 262. RIC QUALIFIED INVESTMENT ENTITY TREATMENT UNDER

FIRPTA.

(a) In General.--Clause (ii) of section 897(h)(4)(A) is amended by striking ``December 31, 2009'' and inserting

``December 31, 2010''.

(b) Effective Date.--

(1) In general.--The amendment made by subsection (a) shall take effect on January 1, 2010. Notwithstanding the preceding sentence, such amendment shall not apply with respect to the withholding requirement under section 1445 of the Internal Revenue Code of 1986 for any payment made before the date of the enactment of this Act.

(2) Amounts withheld on or before date of enactment.--In the case of a regulated investment company--

(A) which makes a distribution after December 31, 2009, and before the date of the enactment of this Act; and

(B) which would (but for the second sentence of paragraph

(1)) have been required to withhold with respect to such distribution under section 1445 of such Code,

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

SEC. 263. EXCEPTIONS FOR ACTIVE FINANCING INCOME.

(a) In General.--Sections 953(e)(10) and 954(h)(9) are each amended by striking ``January 1, 2010'' and inserting

``January 1, 2011''.

(b) Conforming Amendment.--Section 953(e)(10) is amended by striking ``December 31, 2009'' and inserting ``December 31, 2010''.

(c) Effective Date.--The amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2009, and to taxable years of United States shareholders with or within which any such taxable year of such foreign corporation ends.

SEC. 264. LOOK-THRU TREATMENT OF PAYMENTS BETWEEN RELATED

CONTROLLED FOREIGN CORPORATIONS UNDER FOREIGN

PERSONAL HOLDING COMPANY RULES.

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

``January 1, 2011''.

(b) Effective Date.--The amendment made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2009, and to taxable years of United States shareholders with or within which any such taxable year of such foreign corporation ends.

SEC. 265. BASIS ADJUSTMENT TO STOCK OF S CORPS MAKING

CHARITABLE CONTRIBUTIONS OF PROPERTY.

(a) In General.--Paragraph (2) of section 1367(a) is amended by striking ``December 31, 2009'' and inserting

``December 31, 2010''.

(b) Effective Date.--The amendment made by this section shall apply to contributions made in taxable years beginning after December 31, 2009.

SEC. 266. EMPOWERMENT ZONE TAX INCENTIVES.

(a) In General.--Section 1391 is amended--

(1) by striking ``December 31, 2009'' in subsection

(d)(1)(A)(i) and inserting ``December 31, 2010''; and

(2) by striking the last sentence of subsection (h)(2).

(b) Increased Exclusion of Gain on Stock of Empowerment Zone Businesses.--Subparagraph (C) of section 1202(a)(2) is amended--

(1) by striking ``December 31, 2014'' and inserting

``December 31, 2015''; and

(2) by striking ``2014'' in the heading and inserting

``2015''.

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

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

SEC. 267. TAX INCENTIVES FOR INVESTMENT IN THE DISTRICT OF

COLUMBIA.

(a) In General.--Subsection (f) of section 1400 is amended by striking ``December 31, 2009'' each place it appears and inserting ``December 31, 2010''.

(b) Tax-exempt DC Empowerment Zone Bonds.--Subsection (b) of section 1400A is amended by striking ``December 31, 2009'' and inserting ``December 31, 2010''.

(1) Acquisition date.--Paragraphs (2)(A)(i), (3)(A),

(4)(A)(i), and (4)(B)(i)(I) of section 1400B(b) are each amended by striking ``January 1, 2010'' and inserting

``January 1, 2011''.

(2) Limitation on period of gains.--

(A) In general.--Paragraph (2) of section 1400B(e) is amended--

(i) by striking ``December 31, 2014'' and inserting

``December 31, 2015''; and

(ii) by striking ``2014'' in the heading and inserting

``2015''.

(B) Partnerships and s-corps.--Paragraph (2) of section 1400B(g) is amended by striking ``December 31, 2014'' and inserting ``December 31, 2015''.

(d) First-time Homebuyer Credit.--Subsection (i) of section 1400C is amended by striking ``January 1, 2010'' and inserting ``January 1, 2011''.

(e) Effective Dates.--

(1) In general.--Except as otherwise provided in this subsection, the amendments made by this section shall apply to periods after December 31, 2009.

(2) Tax-exempt dc empowerment zone bonds.--The amendment made by subsection (b) shall apply to bonds issued after December 31, 2009.

(3) Acquisition dates for zero-percent capital gains rate.--The amendments made by subsection (c) shall apply to property acquired or substantially improved after December 31, 2009.

(4) Homebuyer credit.--The amendment made by subsection (d) shall apply to homes purchased after December 31, 2009.

SEC. 268. RENEWAL COMMUNITY TAX INCENTIVES.

(a) In General.--Subsection (b) of section 1400E is amended--

(1) by striking ``December 31, 2009'' in paragraphs (1)(A) and (3) and inserting ``December 31, 2010''; and

(2) by striking ``January 1, 2010'' in paragraph (3) and inserting ``January 1, 2011''.

(b) Zero-percent Capital Gains Rate.--

(1) Acquisition date.--Paragraphs (2)(A)(i), (3)(A),

(4)(A)(i), and (4)(B)(i) of section 1400F(b) are each amended by striking ``January 1, 2010'' and inserting ``January 1, 2011''.

(2) Limitation on period of gains.--Paragraph (2) of section 1400F(c) is amended--

(A) by striking ``December 31, 2014'' and inserting

``December 31, 2015''; and

(B) by striking ``2014'' in the heading and inserting

``2015''.

(3) Clerical amendment.--Subsection (d) of section 1400F is amended by striking ``and `December 31, 2014' for `December 31, 2014' ''.

(1) In general.--Subsection (g) of section 1400I is amended by striking ``December 31, 2009'' and inserting ``December 31, 2010''.

(2) Conforming amendment.--Subparagraph (A) of section 1400I(d)(2) is amended by striking ``after 2001 and before 2010'' and inserting ``which begins after 2001 and before the date referred to in subsection (g)''.

(d) Increased Expensing Under Section 179.--Subparagraph

(A) of section 1400J(b)(1) is amended by striking ``January 1, 2010'' and inserting ``January 1, 2011''.

(e) Treatment of Certain Termination Dates Specified in Nominations.--In the case of a designation of a renewal community the nomination for which included a termination date which is contemporaneous with the date specified in subparagraph (A) of section 1400E(b)(1) of the Internal Revenue Code of 1986 (as in effect before the enactment of this Act), subparagraph (B) of such section shall not apply with respect to such designation unless, after the date of the enactment of this section, the entity which made such nomination reconfirms such termination date, or amends the nomination to provide for a new termination date, in such manner as the Secretary of the Treasury (or the Secretary's designee) may provide.

(f) Effective Dates.--

(1) In general.--Except as otherwise provided in this subsection, the amendments made by this section shall apply to periods after December 31, 2009.

(2) Acquisitions.--The amendments made by subsections

(b)(1) and (d) shall apply to acquisitions after December 31, 2009.

(3) Commercial revitalization deduction.--

(A) In general.--The amendment made by subsection (c)(1) shall apply to buildings placed in service after December 31, 2009.

(B) Conforming amendment.--The amendment made by subsection

(c)(2) shall apply to calendar years beginning after December 31, 2009.

SEC. 269. TEMPORARY INCREASE IN LIMIT ON COVER OVER OF RUM

EXCISE TAXES TO PUERTO RICO AND THE VIRGIN

ISLANDS.

(a) In General.--Paragraph (1) of section 7652(f) is amended by striking ``January 1, 2010'' and inserting

``January 1, 2011''.

(b) Effective Date.--The amendment made by this section shall apply to distilled spirits brought into the United States after December 31, 2009.

SEC. 270. PAYMENT TO AMERICAN SAMOA IN LIEU OF EXTENSION OF

ECONOMIC DEVELOPMENT CREDIT.

The Secretary of the Treasury (or his designee) shall pay

$18,000,000 to the Government of American Samoa for purposes of economic development. The payment made under the preceding sentence shall be treated for purposes of section 1324 of title 31, United States Code, as a refund of internal revenue collections to which such section applies.

SEC. 271. ELECTION TO TEMPORARILY UTILIZE UNUSED AMT CREDITS

DETERMINED BY DOMESTIC INVESTMENT.

(a) In General.--Section 53 is amended by adding at the end the following new subsection:

``(g) Election for Corporations With New Domestic Investments.--

``(1) In general.--If a corporation elects to have this subsection apply for its first taxable year beginning after December 31, 2009, the limitation imposed by subsection (c) for such taxable year shall be increased by the AMT credit adjustment amount.

``(2) AMT credit adjustment amount.--For purposes of paragraph (1), the term `AMT credit adjustment amount' means, the lesser of--

``(A) 50 percent of a corporation's minimum tax credit for its first taxable year beginning after December 31, 2009, determined under subsection (b), or

``(B) 10 percent of new domestic investments made during such taxable year.

``(3) New domestic investments.--For purposes of this subsection, the term `new domestic investments' means the cost of qualified property (as defined in section 168(k)(2)(A)(i))--

``(A) the original use of which commences with the taxpayer during the taxable year, and

``(B) which is placed in service in the United States by the taxpayer during such taxable year.

``(4) Credit refundable.--For purposes of subsection (b) of section 6401, the aggregate increase in the credits allowable under this part for any taxable year resulting from the application of this subsection shall be treated as allowed under subpart C (and not under any other subpart). For purposes of section 6425, any amount treated as so allowed shall be treated as a payment of estimated income tax for the taxable year.

``(5) Election.--An election under this subsection shall be made at such time and in such manner as prescribed by the Secretary, and once made, may be revoked only with the consent of the Secretary. Not later than 90 days after the date of the enactment of this subsection, the Secretary shall issue guidance specifying such time and manner.

``(6) Treatment of certain partnership investments.--For purposes of this subsection, a corporation shall take into account its allocable share of any new domestic investments by a partnership for any taxable year if, and only if, more than 90 percent of the capital and profits interests in such partnership are owned by such corporation (directly or indirectly) at all times during such taxable year.

``(7) No double benefit.--

``(A) In general.--A corporation making an election under this subsection may not make an election under subparagraph

(H) of section 172(b)(1).

``(B) Special rules with respect to taxpayers previously electing applicable net operating losses.--In the case of a corporation which made an election under subparagraph (H) of section 172(b)(1) and elects the application of this subsection--

``(i) Election of applicable net operating loss treated as revoked.--The election under such subparagraph (H) shall

(notwithstanding clause (iii)(II) of such subparagraph) be treated as having been revoked by the taxpayer.

``(ii) Coordination with provision for expedited refund.--The amount otherwise treated as a payment of estimated income tax under the last sentence of paragraph (4) shall be reduced

(but not below zero) by the aggregate increase in unpaid tax liability determined under this chapter by reason of the revocation of the election under clause (i).

``(iii) Application of statute of limitations.--With respect to the revocation of an election under clause (i)--

``(I) the statutory period for the assessment of any deficiency attributable to such revocation shall not expire before the end of the 3-year period beginning on the date of the election to have this subsection apply, and

``(II) such deficiency may be assessed before the expiration of such 3-year period notwithstanding the provisions of any other law or rule of law which would otherwise prevent such assessment.

``(C) Exception for eligible small businesses.--Subparagraphs (A) and (B) shall not apply to an eligible small business as defined in section 172(b)(1)(H)(v)(II).

``(8) Regulations.--The Secretary may issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this subsection, including to prevent fraud and abuse under this subsection.''.

(b) Conforming Amendments.--

(1) Section 6211(b)(4)(A) is amended by inserting

``53(g),'' after ``53(e),''.

(2) Section 1324(b)(2) of title 31, United States Code, is amended by inserting ``53(g),'' after ``53(e),''.

SEC. 272. STUDY OF EXTENDED TAX EXPENDITURES.

(a) Findings.--Congress finds the following:

(1) Currently, the aggregate cost of Federal tax expenditures rivals, or even exceeds, the amount of total Federal discretionary spending.

(2) Given the escalating public debt, a critical examination of this use of taxpayer dollars is essential.

(3) Additionally, tax expenditures can complicate the Internal Revenue Code of 1986 for taxpayers and complicate tax administration for the Internal Revenue Service.

(4) To facilitate a better understanding of tax expenditures in the future, it is constructive for legislation extending these provisions to include a study of such provisions.

(b) Requirement to Report.--Not later than November 30, 2010, the Chief of Staff of the Joint Committee on Taxation, in consultation with the Comptroller General of the United States, shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report on each tax expenditure (as defined in section 3(3) of the Congressional Budget Impoundment Control Act of 1974 (2 U.S.C. 622(3)) extended by this title.

(c) Rolling Submission of Reports.--The Chief of Staff of the Joint Committee on Taxation shall initially submit the reports for each such tax expenditure enacted in this subtitle (relating to business tax relief) and subtitle A

(relating to energy) in order of the tax expenditure incurring the least aggregate cost to the greatest aggregate cost (determined by reference to the cost estimate of this Act by the Joint Committee on Taxation). Thereafter, such reports may be submitted in such order as the Chief of Staff determines appropriate.

(d) Contents of Report.--Such reports shall contain the following:

(1) An explanation of the tax expenditure and any relevant economic, social, or other context under which it was first enacted.

(2) A description of the intended purpose of the tax expenditure.

(3) An analysis of the overall success of the tax expenditure in achieving such purpose, and evidence supporting such analysis.

(4) An analysis of the extent to which further extending the tax expenditure, or making it permanent, would contribute to achieving such purpose.

(5) A description of the direct and indirect beneficiaries of the tax expenditure, including identifying any unintended beneficiaries.

(6) An analysis of whether the tax expenditure is the most cost-effective method for achieving the purpose for which it was intended, and a description of any more cost-effective methods through which such purpose could be accomplished.

(7) A description of any unintended effects of the tax expenditure that are useful in understanding the tax expenditure's overall value.

(8) An analysis of how the tax expenditure could be modified to better achieve its original purpose.

(9) A brief description of any interactions (actual or potential) with other tax expenditures or direct spending programs in the same or related budget function worthy of further study.

(10) A description of any unavailable information the staff of the Joint Committee on Taxation may need to complete a more thorough examination and analysis of the tax expenditure, and what must be done to make such information available.

(e) Minimum Analysis by Deadline.--In the event the Chief of Staff of the Joint Committee on Taxation concludes it will not be feasible to complete all reports by the date specified in subsection (a), at a minimum, the reports for each tax expenditure enacted in this subtitle (relating to business tax relief) and subtitle A (relating to energy) shall be completed by such date.

Subtitle D--Temporary Disaster Relief Provisions

PART I--NATIONAL DISASTER RELIEF

SEC. 281. WAIVER OF CERTAIN MORTGAGE REVENUE BOND

REQUIREMENTS.

(a) In General.--Paragraph (11) of section 143(k) is amended by striking ``January 1, 2010'' and inserting

``January 1, 2011''.

(b) Special Rule for Residences Destroyed in Federally Declared Disasters.--Paragraph (13) of section 143(k), as redesignated by subsection (c), is amended by striking

``January 1, 2010'' in subparagraphs (A)(i) and (B)(i) and inserting ``January 1, 2011''.

(c) Technical Amendment.--Subsection (k) of section 143 is amended by redesignating the second paragraph (12) (relating to special rules for residences destroyed in federally declared disasters) as paragraph (13).

(d) Effective Dates.--

(1) In general.--Except as otherwise provided in this subsection, the amendment made by this section shall apply to bonds issued after December 31, 2009.

(2) Residences destroyed in federally declared disasters.--The amendments made by subsection (b) shall apply with respect to disasters occurring after December 31, 2009.

(3) Technical amendment.--The amendment made by subsection

SEC. 282. LOSSES ATTRIBUTABLE TO FEDERALLY DECLARED

DISASTERS.

(a) In General.--Subclause (I) of section 165(h)(3)(B)(i) is amended by striking ``January 1, 2010'' and inserting

``January 1, 2011''.

(b) $500 Limitation.--Paragraph (1) of section 165(h) is amended by striking ``December 31, 2009'' and inserting

``December 31, 2010''.

(1) In general.--The amendment made by subsection (a) shall apply to federally declared disasters occurring after December 31, 2009.

(2) $500 limitation.--The amendment made by subsection (b) shall apply to taxable years beginning after December 31, 2009.

SEC. 283. SPECIAL DEPRECIATION ALLOWANCE FOR QUALIFIED

DISASTER PROPERTY.

(a) In General.--Subclause (I) of section 168(n)(2)(A)(ii) is amended by striking ``January 1, 2010'' and inserting

``January 1, 2011''.

(b) Effective Date.--The amendment made by this section shall apply to disasters occurring after December 31, 2009.

SEC. 284. NET OPERATING LOSSES ATTRIBUTABLE TO FEDERALLY

DECLARED DISASTERS.

(a) In General.--Subclause (I) of section 172(j)(1)(A)(i) is amended by striking ``January 1, 2010'' and inserting

``January 1, 2011''.

(b) Effective Date.--The amendment made by this section shall apply to losses attributable to disasters occurring after December 31, 2009.

SEC. 285. EXPENSING OF QUALIFIED DISASTER EXPENSES.

(a) In General.--Subparagraph (A) of section 198A(b)(2) is amended by striking ``January 1, 2010'' and inserting

``January 1, 2011''.

(b) Effective Date.--The amendment made by this section shall apply to expenditures on account of disasters occurring after December 31, 2009.

PART II--REGIONAL PROVISIONS

Subpart A--New York Liberty Zone

SEC. 291. SPECIAL DEPRECIATION ALLOWANCE FOR NONRESIDENTIAL

AND RESIDENTIAL REAL PROPERTY.

(a) In General.--Subparagraph (A) of section 1400L(b)(2) is amended by striking ``December 31, 2009'' and inserting

``December 31, 2010''.

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

SEC. 292. TAX-EXEMPT BOND FINANCING.

(a) In General.--Subparagraph (D) of section 1400L(d)(2) is amended by striking ``January 1, 2010'' and inserting

``January 1, 2011''.

(b) Effective Date.--The amendment made by this section shall apply to bonds issued after December 31, 2009.

Subpart B--GO Zone

SEC. 295. INCREASE IN REHABILITATION CREDIT.

(a) In General.--Subsection (h) of section 1400N is amended by striking ``December 31, 2009'' and inserting ``December 31, 2010''.

(b) Effective Date.--The amendment made by this section shall apply to amounts paid or incurred after December 31, 2009.

SEC. 296. WORK OPPORTUNITY TAX CREDIT WITH RESPECT TO CERTAIN

INDIVIDUALS AFFECTED BY HURRICANE KATRINA FOR

EMPLOYERS INSIDE DISASTER AREAS.

(a) In General.--Paragraph (1) of section 201(b) of the Katrina Emergency Tax Relief Act of 2005 is amended by striking ``4-year'' and inserting ``5-year''.

(b) Effective Date.--The amendment made by subsection (a) shall apply to individuals hired after August 27, 2009.

SEC. 297. EXTENSION OF LOW-INCOME HOUSING CREDIT RULES FOR

BUILDINGS IN GO ZONES.

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

TITLE III--PENSION FUNDING RELIEF

Subtitle A--Single-Employer Plans

SEC. 301. EXTENDED PERIOD FOR SINGLE-EMPLOYER DEFINED BENEFIT

PLANS TO AMORTIZE CERTAIN SHORTFALL

AMORTIZATION BASES.

(a) ERISA Amendments.--

(1) In general.--Section 303(c)(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1083(c)(2)) is amended by adding at the end the following subparagraphs:

``(D) Special rule.--

``(i) In general.--In the case of the shortfall amortization base of a plan for any applicable plan year, the shortfall amortization installments are the amounts described in clause (ii) or (iii), if made applicable by an election under clause (iv). In the absence of a timely election, such installments shall be determined without regard to this subparagraph.

``(ii) 2 plus 7 amortization schedule.--The shortfall amortization installments described in this clause are--

``(I) in the case of the first 2 plan years in the 9-plan-year period beginning with the applicable plan year, interest on the shortfall amortization base (determined by using the effective interest rate for the applicable plan year), and

``(II) in the case of the last 7 plan years in such 9-plan-year period, the amounts necessary to amortize the balance of such shortfall amortization base in level annual installments over such last 7 plan years (determined using the segment rates determined under subparagraph (C) of subsection (h)(2) for the applicable plan year, applied under rules similar to the rules of subparagraph (B) of subsection (h)(2)).

``(iii) 15-year amortization.--The shortfall amortization installments described in this clause are the amounts under subparagraphs (A) and (B) determined by substituting `15 plan-year period' for `7-plan-year period'.

``(iv) Election.--

``(I) In general.--The plan sponsor may, with respect to a plan, elect, with respect to any of not more than 2 applicable plan years, to determine shortfall amortization installments under this subparagraph. An election under either clause (ii) or clause (iii) may be made with respect to either of such applicable plan years.

``(II) Eligibility for election.--An election may be made to determine shortfall amortization installments under this subparagraph with respect to a plan only if, as of the date of the election--

``(aa) the plan sponsor is not a debtor in a case under title 11, United States Code, or similar Federal or State law,

``(bb) there are no unpaid minimum required contributions with respect to the plan for purposes of section 4971 of the Internal Revenue Code of 1986,

``(cc) there is no lien in favor of the plan under subsection (k) or under section 430(k) of such Code, and

``(dd) a distress termination has not been initiated for the plan under section 4041(c).

``(III) Rules relating to election.--Such election shall be made at such times, and in such form and manner, as shall be prescribed by the Secretary of the Treasury and shall be irrevocable, except under such limited circumstances, and subject to such conditions, as such Secretary may prescribe.

``(E) Applicable plan year.--

``(i) In general.--For purposes of this paragraph, the term

`applicable plan year' means, subject to the election of the plan sponsor under subparagraph (D)(iv), each of not more than 2 of the plan years beginning in 2008, 2009, 2010, or 2011.

``(ii) Special rule relating to 2008.--A plan year may be elected as an applicable plan year pursuant to this subparagraph only if the due date under subsection (j)(1) for the payment of the minimum required contribution for such plan year occurs on or after March 10, 2010.

``(F) Increases in shortfall amortization installments in cases of excess compensation or certain dividends or stock redemptions.--

``(i) In general.--If, with respect to an election for an applicable plan year under subparagraph (D), there is an installment acceleration amount with respect to a plan for any plan year in the restriction period (or if there is an installment acceleration amount carried forward to a plan year not in the restriction period), then the shortfall amortization installment otherwise determined and payable under this paragraph for such plan year shall be increased by such amount.

``(ii) Back-end adjustment to amortization schedule.--Subject to rules prescribed by the Secretary of the Treasury, if a shortfall amortization installment with respect to any shortfall amortization base for an applicable plan year is required to be increased for any plan year under clause (i), subsequent shortfall amortization installments with respect to such base shall be reduced, in reverse order of the otherwise required installments beginning with the final scheduled installment, to the extent necessary to limit the present value of such subsequent shortfall amortization installments (after application of this subparagraph) to the present value of the remaining unamortized shortfall amortization base.

``(iii) Installment acceleration amount.--For purposes of this subparagraph--

``(I) In general.--The term `installment acceleration amount' means, with respect to any plan year in a restriction period with respect to an applicable plan year, the sum of--

``(aa) the aggregate amount of excess employee compensation determined under clause (iv) for the plan year, plus

``(bb) the dividend and redemption amount determined under clause (v) for the plan year.

``(II) Cumulative limitation.--The installment acceleration amount for any plan year shall not exceed the excess (if any) of--

``(aa) the sum of the shortfall amortization installments for the plan year and all preceding plan years in the amortization period elected under subparagraph (D) with respect to the shortfall amortization base with respect to an applicable year, determined without regard to subparagraph

(D) and this subparagraph, over

``(bb) the sum of the shortfall amortization installments for such plan year and all such preceding plan years, determined after application of subparagraph (D) (and in the case of any preceding plan year, after application of this subparagraph).

``(III) Carryover of excess installment acceleration amounts.--

``(aa) In general.--If the installment acceleration amount for any plan year (determined without regard to subclause

(II)) exceeds the limitation under subclause (II), then, subject to item (bb), such excess shall be treated as an installment acceleration amount for the succeeding plan year.

``(bb) Cap to apply.--If any amount treated as an installment acceleration amount under item (aa) or this item with respect any succeeding plan year, when added to other installment acceleration amounts (determined without regard to subclause (II)) with respect to the plan year, exceeds the limitation under subclause (II), the portion of such amount representing such excess shall be treated as an installment acceleration amount with respect to the next succeeding plan year.

``(cc) Limitation on years to which amounts carried forward.--No amount shall be carried forward under item (aa) or (bb) to a plan year which begins after the last plan year in the restriction period (or after the second plan year following such last plan year in the case of an election year with respect to which 15-year amortization was elected under subparagraph (D)(iii)).

``(dd) Ordering rules.--For purposes of applying item (bb), installment acceleration amounts for the plan year

(determined without regard to any carryover under this clause) shall be applied first against the limitation under subclause (II) and then carryovers to such plan year shall be applied against such limitation on a first-in, first-out basis.

``(iv) Excess employee compensation.--

``(I) In general.--For purposes of this paragraph, the term

`excess employee compensation' means the sum of--

``(aa) with respect to any employee, for any plan year, the excess (if any) of--

``(AA) the aggregate amount includible in income under chapter 1 of the Internal Revenue Code of 1986 for remuneration during the calendar year in which such plan year begins for services performed by the employee for the plan sponsor (whether or not performed during such calendar year), over

``(BB) $1,000,000, plus

``(bb) the amount of assets set aside or reserved (directly or indirectly) in a trust (or other arrangement as determined by the Secretary of the Treasury), or transferred to such a trust or other arrangement, during the calendar year by a plan sponsor for purposes of paying deferred compensation of an employee under a nonqualified deferred compensation plan

(as defined in section 409A of such Code) of the plan sponsor.

``(II) No double counting.--No amount shall be taken into account under subclause (I) more than once.

``(III) Employee; remuneration.--For purposes of this clause, the term `employee' includes, with respect to a calendar year, a self-employed individual who is treated as an employee under section 401(c) of the Internal Revenue Code of 1986 for the taxable year ending during such calendar year, and the term `remuneration' shall include earned income of such an individual.

``(IV) Certain payments under existing contracts.--There shall not be taken into account under subclause (I)(aa) any remuneration consisting of nonqualified deferred compensation, restricted stock (or restricted stock units), stock options, or stock appreciation rights payable or granted under a written binding contract that was in effect on March 1, 2010, and which was not modified in any material respect before such remuneration is paid.

``(V) Only remuneration for post-2009 services counted.--Remuneration shall be taken into account under subclause

(I)(aa) only to the extent attributable to services performed by the employee for the plan sponsor after December 31, 2009.

``(VI) Commissions.--

``(aa) In general.--There shall not be taken into account under subclause (I)(aa) any remuneration payable on a commission basis solely on account of income directly generated by the individual performance of the individual to whom such remuneration is payable.

``(bb) Specified employees.--Item (aa) shall not apply in the case of any specified employee (within the meaning of section 409A(a)(2)(B)(i) of the Internal Revenue Code of 1986) or any employee who would be such a specified employee if the plan sponsor were a corporation described in such section.

``(VII) Indexing of amount.--In the case of any calendar year beginning after 2010, the dollar amount under subclause

(I)(aa)(BB) shall be increased by an amount equal to--

``(aa) such dollar amount, multiplied by

``(bb) the cost-of-living adjustment determined under section 1(f)(3) of the Internal Revenue Code of 1986 for the calendar year, determined by substituting `calendar year 2009' for `calendar year 1992' in subparagraph (B) thereof.

If the amount of any increase under clause (i) is not a multiple of $20,000, such increase shall be rounded to the next lowest multiple of $20,000.

``(v) Certain dividends and redemptions.--

``(I) In general.--The dividend and redemption amount determined under this clause for any plan year is the lesser of--

``(aa) the excess of--

``(AA) the sum of the dividends paid during the plan year by the plan sponsor, plus the amounts paid for the redemption of stock of the plan sponsor redeemed during the plan year, over

``(BB) an amount equal to the average of adjusted annual net income of the plan sponsor for the last 5 fiscal years of the plan sponsor ending before such plan year, or

``(bb) the sum of--

``(AA) the amounts paid for the redemption of stock of the plan sponsor redeemed during the plan year, plus

``(BB) the excess of dividends paid during the plan year by the plan sponsor over the dividend base amount.

``(II) Definitions.--

``(aa) Adjusted annual net income.--For purposes of subclause (I)(aa)(BB), the term `adjusted annual net income' with respect to any fiscal year means annual net income, determined in accordance with generally accepted accounting principles (before after-tax gain or loss on any sale of assets), but without regard to any reduction by reason of depreciation or amortization, except that in no event shall adjusted annual net income for any fiscal year be less than zero.

``(bb) Dividend base amount.--For purposes of this clause, the term `dividend base amount' means, with respect to a plan year, an amount equal to the greater of--

``(AA) the median of the amounts of the dividends paid during each of the last 5 fiscal years of the plan sponsor ending before such plan year, or

``(BB) the amount of dividends paid during such plan year on preferred stock that was issued on or before May 21, 2010, or that is replacement stock for such preferred stock.

``(III) Only certain post-2009 dividends and redemptions counted.--For purposes of subclause (I) (other than for purposes of calculating the dividend base amount), there shall only be taken into account dividends declared, and redemptions occurring, after February 28, 2010.

``(IV) Exception for intra-group dividends.--Dividends paid by one member of a controlled group (as defined in section 302(d)(3)) to another member of such group shall not be taken into account under subclause (I).

``(V) Exception for stock dividends.--Any distribution by the plan sponsor to its shareholders of stock issued by the plan sponsor shall not be taken into account under subclause

(I).

``(VI) Exception for certain redemptions.--The following shall not be taken into account under subclause (I):

``(aa) Redemptions of securities which, at the time of redemption, are not listed on an established securities market and--

``(AA) are made pursuant to a pension plan that is qualified under section 401 of the Internal Revenue Code of 1986 or a shareholder-approved program, or

``(BB) are made on account of an employee's termination of employment with the plan sponsor, or the death or disability of a shareholder.

``(bb) Redemptions of securities which are not, immediately after issuance, listed on an established securities market and are, or had previously been--

``(AA) held, directly or indirectly, by, or for the benefit of, the Federal Government or a Federal reserve bank, or

``(BB) held by a national government (or a government-related entity of such a government) or an employee benefit plan if such shares are substantially identical to shares described in subitem (AA).

``(vi) Other definitions and rules.--For purposes of this subparagraph--

``(I) Plan sponsor.--The term `plan sponsor' includes any member of the plan sponsor's controlled group (as defined in section 302(d)(3)).

``(II) Restriction period.--The term `restriction period' means, with respect to any applicable plan year with respect to which an election is made under subparagraph (D)--

``(aa) except as provided in item (bb), the 3-year period beginning with the applicable plan year (or, if later, the first plan year beginning after December 31, 2009), or

``(bb) if the plan sponsor elects 15-year amortization for the shortfall amortization base for the applicable plan year, the 5-year period beginning with such plan year (or, if later, the first plan year beginning after December 31, 2009).

``(III) Elections for multiple plans.--If a plan sponsor makes elections under subparagraph (D) with respect to 2 or more plans, the Secretary of the Treasury shall provide rules for the application of this subparagraph to such plans, including rules for the ratable allocation of any installment acceleration amount among such plans on the basis of each plan's relative reduction in the plan's shortfall amortization installment for the first plan year in the amortization period described in clause (i) (determined without regard to this subparagraph).

``(G) Mergers and acquisitions.--The Secretary of the Treasury shall prescribe rules for the application of subparagraphs (D) and (F) in any case where there is a merger or acquisition involving a plan sponsor making the election under subparagraph (D).

``(H) Regulations and guidance.--The Secretary of the Treasury may prescribe such regulations and other guidance of general applicability as such Secretary may determine necessary to achieve the purposes of subparagraphs (D) and

(F).''.

(2) Notice requirement.--Section 204 of such Act (29 U.S.C. 1054) is amended--

(A) by redesignating subsection (k) as subsection (l); and

(B) by inserting after subsection (j) the following new subsection:

``(k) Notice in Connection With Shortfall Amortization Election.--

``(1) In general.--Not later 30 days after the date of an election under clause (iv) of section 303(c)(2)(D) in connection with a single-employer plan, the plan administrator shall provide notice of such election in accordance with this subsection to each plan participant and beneficiary, each labor organization representing such participants and beneficiaries, and the Pension Benefit Guaranty Corporation.

``(2) Matters included in notice.--Each notice provided pursuant to this subsection shall set forth--

``(A) a statement that recently enacted legislation permits employers to delay pension funding;

``(B) with respect to required contributions--

``(i) the amount of contributions that would have been required had the election not been made;

``(ii) the amount of the reduction in required contributions for the applicable plan year that occurs on account of the election; and

``(iii) the number of plan years to which such reduction will apply;

``(C) with respect to a plan's funding status as of the end of the plan year preceding the applicable plan year--

``(i) the liabilities determined under section 4010(d)(1)(A); and

``(ii) the market value of assets of the plan; and

``(D) with respect to installment acceleration amounts (as defined in section 303(c)(2)(F)(iii)(I))--

``(i) an explanation of section 303(c)(2)(F) (relating to increases in shortfall amortization installments in cases of excess compensation or certain dividends or stock redemptions); and

``(ii) a statement that increases in required contributions may occur in the event of future payments of excess employee compensation or certain share repurchasing or dividend activity and that subsequent notices of any such payments or activity will be provided in the annual funding notice provided pursuant to section 101(f).

``(3) Other requirements.--

``(A) Form.--The notice required by paragraph (1) shall be written in a manner calculated to be understood by the average plan participant. The Secretary of the Treasury shall prescribe a model notice that a plan administrator may use to satisfy the requirements of paragraph (1).

``(B) Provision to designated persons.--Any notice under paragraph (1) may be provided to a person designated, in writing, by the person to which it would otherwise be provided.

``(4) Effect of egregious failure.--

``(A) In general.--In the case of any egregious failure to meet any requirement of this subsection with respect to any election, such election shall be treated as having not been made.

``(B) Egregious failure.--For purposes of subparagraph (A), there is an egregious failure to meet the requirements of this subsection if such failure is in the control of the plan sponsor and is--

``(i) an intentional failure (including any failure to promptly provide the required notice or information after the plan administrator discovers an unintentional failure to meet the requirements of this subsection),

``(ii) a failure to provide most of the participants and beneficiaries with most of the information they are entitled to receive under this subsection, or

``(iii) a failure which is determined to be egregious under regulations prescribed by the Secretary of the Treasury.

``(5) Use of new technologies.--The Secretary of the Treasury may, in consultation with the Secretary, by regulations or other guidance of general applicability, allow any notice under this subsection to be provided using new technologies.''.

(i) by striking ``and'' at the end of clause (i);

(ii) by redesignating clause (ii) as clause (iii); and

(iii) by inserting after clause (i) the following new clause:

``(ii) any excess employee compensation amounts and any dividends and redemptions amounts determined under section 303(c)(2)(F) for the preceding plan year with respect to the plan, and''.

(3) Disregard of installment acceleration amounts in determining quarterly contributions.--Section 303(j)(3) of such Act (29 U.S.C. 1083(j)(3)) is amended by adding at the end the following new subparagraph:

``(F) Disregard of installment acceleration amounts.--Subparagraph (D) shall be applied without regard to any increase under subsection (c)(2)(F).''.

(4) Conforming amendment.--Section 303(c)(1) of such Act

(29 U.S.C. 1083(c)(1)) is amended by striking ``the shortfall amortization bases for such plan year and each of the 6 preceding plan years'' and inserting ``any shortfall amortization base which has not been fully amortized under this subsection''.

(b) IRC Amendments.--

(1) In general.--Section 430(c)(2) of the Internal Revenue Code of 1986 is amended by adding at the end the following subparagraphs:

``(D) Special rule.--

``(ii) 2 plus 7 amortization schedule.--The shortfall amortization installments described in this clause are--

``(iv) Election.--

``(II) Eligibility for election.--An election may be made to determine shortfall amortization installments under this subparagraph with respect to a plan only if, as of the date of the election--

``(aa) the plan sponsor is not a debtor in a case under title 11, United States Code, or similar Federal or State law,

``(bb) there are no unpaid minimum required contributions with respect to the plan for purposes of section 4971,

``(cc) there is no lien in favor of the plan under subsection (k) or under section 303(k) of the Employee Retirement Income Security Act of 1974, and

``(dd) a distress termination has not been initiated for the plan under section 4041(c) of such Act.

``(III) Rules relating to election.--Such election shall be made at such times, and in such form and manner, as shall be prescribed by the Secretary and shall be irrevocable, except under such limited circumstances, and subject to such conditions, as the Secretary may prescribe.

``(E) Applicable plan year.--

``(i) In general.--For purposes of this paragraph, the term

`applicable plan year' means, subject to the election of the plan sponsor under subparagraph (D)(iv), each of not more than 2 of the plan years beginning in 2008, 2009, 2010, or 2011.

``(F) Increases in shortfall amortization installments in cases of excess compensation or certain dividends or stock redemptions.--

``(ii) Back-end adjustment to amortization schedule.--Subject to rules prescribed by the Secretary, if a shortfall amortization installment with respect to any shortfall amortization base for an applicable plan year is required to be increased for any plan year under clause (i), subsequent shortfall amortization installments with respect to such base shall be reduced, in reverse order of the otherwise required installments beginning with the final scheduled installment, to the extent necessary to limit the present value of such subsequent shortfall amortization installments (after application of this subparagraph) to the present value of the remaining unamortized shortfall amortization base.

``(iii) Installment acceleration amount.--For purposes of this subparagraph--

``(I) In general.--The term `installment acceleration amount' means, with respect to any plan year in a restriction period with respect to an applicable plan year, the sum of--

``(aa) the aggregate amount of excess employee compensation determined under clause (iv) for the plan year, plus

``(bb) the dividend and redemption amount determined under clause (v) for the plan year.

``(II) Cumulative limitation.--The installment acceleration amount for any plan year shall not exceed the excess (if any) of--

(D) and this subparagraph, over

``(III) Carryover of excess installment acceleration amounts.--

``(aa) In general.--If the installment acceleration amount for any plan year (determined without regard to subclause

(II)) exceeds the limitation under subclause (II), then, subject to item (bb), such excess shall be treated as an installment acceleration amount for the succeeding plan year.

``(dd) Ordering rules.--For purposes of applying item (bb), installment acceleration amounts for the plan year

``(iv) Excess employee compensation.--

``(I) In general.--For purposes of this paragraph, the term

`excess employee compensation' means the sum of--

``(aa) with respect to any employee, for any plan year, the excess (if any) of--

``(AA) the aggregate amount includible in income under chapter 1 for remuneration during the calendar year in which such plan year begins for services performed by the employee for the plan sponsor (whether or not performed during such calendar year), over

``(BB) $1,000,000, plus

``(bb) the amount of assets set aside or reserved (directly or indirectly) in a trust (or other arrangement as determined by the Secretary), or transferred to such a trust or other arrangement, during the calendar year by a plan sponsor for purposes of paying deferred compensation of an employee under a nonqualified deferred compensation plan (as defined in section 409A) of the plan sponsor.

``(II) No double counting.--No amount shall be taken into account under subclause (I) more than once.

``(III) Employee; remuneration.--For purposes of this clause, the term `employee' includes, with respect to a calendar year, a self-employed individual who is treated as an employee under section 401(c) for the taxable year ending during such calendar year, and the term `remuneration' shall include earned income of such an individual.

``(IV) Certain payments under existing contracts.--There shall not be taken into account under subclause (I) any remuneration consisting of nonqualified deferred compensation, restricted stock (or restricted stock units), stock options, or stock appreciation rights payable or granted under a written binding contract that was in effect on March 1, 2010, and which was not modified in any material respect before such remuneration is paid.

``(V) Only remuneration for post-2009 services counted.--Remuneration shall be taken into account under subclause

(I)(aa) only to the extent attributable to services performed by the employee for the plan sponsor after December 31, 2009.

``(VI) Commissions.--

``(bb) Specified employees.--Item (aa) shall not apply in the case of any specified employee (within the meaning of section 409A(a)(2)(B)(i)) or any employee who would be such a specified employee if the plan sponsor were a corporation described in such section.

``(VII) Indexing of amount.--In the case of any calendar year beginning after 2010, the dollar amount under subclause

(I)(aa)(BB) shall be increased by an amount equal to--

``(aa) such dollar amount, multiplied by

``(bb) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting `calendar year 2009' for `calendar year 1992' in subparagraph (B) thereof.

If the amount of any increase under clause (i) is not a multiple of $20,000, such increase shall be rounded to the next lowest multiple of $20,000.

``(v) Certain dividends and redemptions.--

``(I) In general.--The dividend and redemption amount determined under this clause for any plan year is the lesser of--

``(aa) the excess of--

``(AA) the sum of the dividends paid during the plan year by the plan sponsor, plus the amounts paid for the redemption of stock of the plan sponsor redeemed during the plan year, over

``(BB) an amount equal to the average of adjusted annual net income of the plan sponsor for the last 5 fiscal years of the plan sponsor ending before such plan year, or

``(bb) the sum of--

``(AA) the amounts paid for the redemption of stock of the plan sponsor redeemed during the plan year, plus

``(BB) the excess of dividends paid during the plan year by the plan sponsor over the dividend base amount.

``(II) Definitions.--

``(bb) Dividend base amount.--For purposes of this clause, the term `dividend base amount' means, with respect to a plan year, an amount equal to the greater of--

``(AA) the median of the amounts of the dividends paid during each of the last 5 fiscal years of the plan sponsor ending before such plan year, or

``(BB) the amount of dividends paid during such plan year on preferred stock that was issued on or before May 21, 2010, or that is replacement stock for such preferred stock.

``(IV) Exception for intra-group dividends.--Dividends paid by one member of a controlled group (as defined in section 412(d)(3)) to another member of such group shall not be taken into account under subclause (I).

``(V) Exception for stock dividends.--Any distribution by the plan sponsor to its shareholders of stock issued by the plan sponsor shall not be taken into account under subclause

(I).

``(VI) Exception for certain redemptions.--The following shall not be taken into account under subclause (I):

``(aa) Redemptions of securities which, at the time of redemption, are not listed on an established securities market and--

``(AA) are made pursuant to a pension plan that is qualified under section 401 or a shareholder-approved program, or

``(BB) are made on account of an employee's termination of employment with the plan sponsor, or the death or disability of a shareholder.

``(bb) Redemptions of securities which are not, immediately after issuance, listed on an established securities market and are, or had previously been--

``(AA) held, directly or indirectly, by, or for the benefit of, the Federal Government or a Federal reserve bank, or

``(BB) held by a national government (or a government-related entity of such a government) or an employee benefit plan if such shares are substantially identical to shares described in subitem (AA).

``(vi) Other definitions and rules.--For purposes of this subparagraph--

``(I) Plan sponsor.--The term `plan sponsor' includes any group of which the plan sponsor is a member and which is treated as a single employer under subsection (b), (c), (m), or (o) of section 414.

``(II) Restriction period.--The term `restriction period' means, with respect to any applicable plan year with respect to which an election is made under subparagraph (D)--

``(aa) except as provided in item (bb), the 3-year period beginning with the applicable plan year (or, if later, the first plan year beginning after December 31, 2009), or

``(III) Elections for multiple plans.--If a plan sponsor makes elections under subparagraph (D) with respect to 2 or more plans, the Secretary shall provide rules for the application of this subparagraph to such plans, including rules for the ratable allocation of any installment acceleration amount among such plans on the basis of each plan's relative reduction in the plan's shortfall amortization installment for the first plan year in the amortization period described in clause (i) (determined without regard to this subparagraph).

``(G) Mergers and acquisitions.--The Secretary shall prescribe rules for the application of subparagraphs (D) and

(F) in any case where there is a merger or acquisition involving a plan sponsor making the election under subparagraph (D).

``(H) Regulations and guidance.--The Secretary may prescribe such regulations and other guidance of general applicability as the Secretary may determine necessary to achieve the purposes of subparagraphs (D) and (F).''.

(2) Notice requirement.--

(A) In general.--Section 4980F of such Code is amended--

(i) by striking ``subsection (e)'' each place it appears in subsection (a) and paragraphs (1) and (3) of subsection (c) and inserting ``subsections (e) and (f)'';

(ii) by striking ``subsection (e)'' in subsection (c)(2)(A) and inserting ``subsection (e), (f), or both, as the case may be''; and

(iii) by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection:

``(f) Notice in Connection With Shortfall Amortization Election.--

``(1) In general.--Not later 30 days after the date of an election under clause (iv) of section 430(c)(2)(D) in connection with a plan, the plan administrator shall provide notice of such election in accordance with this subsection to each plan participant and beneficiary, each labor organization representing such participants and beneficiaries, and the Pension Benefit Guaranty Corporation.

``(2) Matters included in notice.--Each notice provided pursuant to this subsection shall set forth--

``(A) a statement that recently enacted legislation permits employers to delay pension funding;

``(B) with respect to required contributions--

``(i) the amount of contributions that would have been required had the election not been made;

``(ii) the amount of the reduction in required contributions for the applicable plan year that occurs on account of the election; and

``(iii) the number of plan years to which such reduction will apply;

``(C) with respect to a plan's funding status as of the end of the plan year preceding the applicable plan year--

``(i) the liabilities determined under section 4010(d)(1)(A) of the Employee Retirement Income Security Act of 1974; and

``(ii) the market value of assets of the plan; and

``(D) with respect to installment acceleration amounts (as defined in section 430(c)(2)(F)(iii)(I))--

``(i) an explanation of section 430(c)(2)(F) (relating to increases in shortfall amortization installments in cases of excess compensation or certain dividends or stock redemptions); and

``(3) Other requirements.--

``(A) Form.--The notice required by paragraph (1) shall be written in a manner calculated to be understood by the average plan participant and shall provide sufficient information (as determined in accordance with regulations or other guidance of general applicability prescribed by the Secretary) to allow plan participants and beneficiaries to understand the effect of the election. The Secretary shall prescribe a model notice that a plan administrator may use to satisfy the requirements of paragraph (1).

``(B) Provision to designated persons.--Any notice under paragraph (1) may be provided to a person designated, in writing, by the person to which it would otherwise be provided.''.

(B) Conforming amendment.--Subsection (g) of section 4980F of such Code is amended by inserting ``or (f)'' after

``subsection (e)''.

(3) Disregard of installment acceleration amounts in determining quarterly contributions.--Section 430(j)(3) of such Code is amended by adding at the end the following new subparagraph:

``(F) Disregard of installment acceleration amounts.--Subparagraph (D) shall be applied without regard to any increase under subsection (c)(2)(F).''.

(4) Conforming amendment.--Paragraph (1) of section 430(c) of such Code is amended by striking ``the shortfall amortization bases for such plan year and each of the 6 preceding plan years'' and inserting ``any shortfall amortization base which has not been fully amortized under this subsection''.

SEC. 302. APPLICATION OF EXTENDED AMORTIZATION PERIOD TO

PLANS SUBJECT TO PRIOR LAW FUNDING RULES.

(a) In General.--Title I of the Pension Protection Act of 2006 is amended by redesignating section 107 as section 108 and by inserting the following after section 106:

``SEC. 107. APPLICATION OF FUNDING RELIEF TO PLANS WITH

DELAYED EFFECTIVE DATE.

``(a) Alternative Elections.--

``(1) In general.--Subject to this section, a plan sponsor of a plan to which section 104, 105, or 106 of this Act applies may either elect the application of subsection (b) with respect to the plan for not more than 2 applicable plan years or elect the application of subsection (c) with respect to the plan for 1 applicable plan year.

``(2) Eligibility for elections.--An election may be made by a plan sponsor under paragraph (1) with respect to a plan only if at the time of the election--

``(A) the plan sponsor is not a debtor in a case under title 11, United States Code, or similar Federal or State law,

``(B) there are no accumulated funding deficiencies (as defined in section 302(a)(2) of the Employee Retirement Income Security Act of 1974 (as in effect immediately before the enactment of this Act) or in section 412(a) of the Internal Revenue Code of 1986 (as so in effect)) with respect to the plan,

``(C) there is no lien in favor of the plan under section 302(d) (as so in effect) or under section 412(n) of such Code

(as so in effect), and

``(D) a distress termination has not been initiated for the plan under section 4041(c) of the Employee Retirement Income Security Act of 1974.

``(b) Alternative Additional Funding Charge.--If the plan sponsor elects the application of this subsection with respect to the plan, for purposes of applying section 302(d) of the Employee Retirement Income Security Act of 1974 (as in effect before the amendments made by this subtitle and subtitle B) and section 412(l) of the Internal Revenue Code of 1986 (as so in effect)--

``(1) the deficit reduction contribution under paragraph

(2) of such section 302(d) and paragraph (2) of such section 412(l) for such plan for any applicable plan year, shall be zero, and

``(2) the additional funding charge under paragraph (1) of such section 302(d) and paragraph (1) of such section 412(l) for such plan for any applicable plan year shall be increased by an amount equal to the installment acceleration amount (as defined in sections 303(c)(2)(F)(iii)(I) of such Act (as amended by the American Jobs and Closing Tax Loopholes Act of 2010) and 430(c)(2)(F)(iii)(I) of such Code (as so amended)) with respect to the plan sponsor for such plan year, determined by treating the later of such plan year or the first plan year beginning after December 31, 2009, as the restriction period.

``(c) Application of 15-year Amortization.--If the plan sponsor elects the application of this subsection with respect to the plan, for purposes of applying section 302(d) of such Act (as in effect before the amendments made by this subtitle and subtitle B) and section 412(l) of such Code (as so in effect)--

``(1) in the case of the increased unfunded new liability of the plan, the applicable percentage described in paragraph

(4)(C) of such section 302(d) and paragraph (4)(C) of such section 412(l) for any pre-effective date plan year beginning with or after the applicable plan year shall be the ratio of--

``(A) the annual installments payable in each plan year if the increased unfunded new liability for such plan year were amortized in equal installments over the period beginning with such plan year and ending with the last plan year in the period of 15 plan years beginning with the applicable plan year, using an interest rate equal to the third segment rate described in sections 104(b), 105(b), and 106(b) of this Act, to

``(B) the increased unfunded new liability for such plan year,

``(2) in the case of the excess of the unfunded new liability over the increased unfunded new liability, such applicable percentage shall be determined without regard to this section, and

``(3) the additional funding charge with respect to the plan for a plan year shall be increased by an amount equal to the installment acceleration amount (as defined in section 303(c)(2)(F)(iii) of such Act (as amended by the American Jobs and Closing Tax Loopholes Act of 2010 and section 430(c)(2)(F)(iii) of such Code (as so amended)) with respect to the plan sponsor for such plan year, determined without regard to subclause (II) of such sections 303(c)(2)(F)(iii) and 430(c)(2)(F)(iii).

``(d) Definitions and Special Rules.--For purposes of this section--

``(1) Applicable plan year.--

``(A) In general.--The term `applicable plan year' with respect to a plan means, subject to the election of the plan sponsor under subsection (a), a plan year beginning in 2009, 2010, or 2011.

``(B) Election.--

``(i) In general.--The election described in subsection (a) shall be made at such times, and in such form and manner, as shall be prescribed by the Secretary of the Treasury.

``(ii) Reduction in years which may be elected.--The number of applicable plan years for which an election may be made under section 303(c)(2)(D) of the Employee Retirement Income Security Act of 1974 (as amended by the American Jobs and Closing Tax Loopholes Act of 2010) or section 430(c)(2)(D) of the Internal Revenue Code of 1986 (as so amended) shall be reduced by the number of applicable plan years for which an election under this section is made.

``(C) Allocation of installment acceleration amount for multiple plan election.--In the case of an election under this section with respect to 2 or more plans by the same plan sponsor, the installment acceleration amount shall be apportioned ratably with respect to such plans in proportion to the deficit reduction contributions of the plans determined without regard to subsection (b)(1).

``(2) Plan sponsor.--The term `plan sponsor' shall have the meaning provided such term in section 303(c)(2)(F)(vi)(I) of the Employee Retirement Income Security Act of 1974 (as amended by the American Jobs and Closing Tax Loopholes Act of 2010) and section 430(c)(2)(F)(vi)(I) of the Internal Revenue Code of 1986 (as so amended).

``(3) Pre-effective date plan year.--The term `pre-effective date plan year' means, with respect to a plan, any plan year prior to the first year in which the amendments made by this subtitle and subtitle B apply to the plan.

``(4) Increased unfunded new liability.--The term

`increased unfunded new liability' means, with respect to a year, the excess (if any) of the unfunded new liability over the amount of unfunded new liability determined as if the value of the plan's assets determined under subsection 302(c)(2) of such Act (as in effect before the amendments made by this subtitle and subtitle B) and section 412(c)(2) of such Code (as so in effect) equaled the product of the current liability of the plan for the year multiplied by the funded current liability percentage (as defined in section 302(d)(8)(B) of such Act (as so in effect) and 412(l)(8)(B) of such Code (as so in effect)) of the plan for the second plan year preceding the first applicable plan year of such plan for which an election under this section is made.

``(5) Other definitions.--The terms `unfunded new liability' and `current liability' shall have the meanings set forth in section 302(d) of such Act (as so in effect) and section 412(l) of such Code (as so in effect).

``(6) Additional funding charge increase not to exceed relief.--

``(A) Election under subsection (b).--In the case of an election under subsection (b), an increase resulting from the application of subsection (b)(2) in the additional funding charge with respect to a plan for a plan year shall not exceed the excess (if any) of--

``(i) the deficit reduction contribution under section 302(d)(2) of such Act (as so in effect) and section 412(l)(2) of such Code (as so in effect) for such plan year, determined as if the election had not been made, over

``(ii) the deficit reduction contribution under such sections for such plan (determined without regard to any increase under subsection (b)(2)).

``(B) Election under subsection (c).--An increase resulting from the application of subsection (c)(3) in the additional funding charge with respect to a plan for a plan year shall not exceed the excess (if any) of--

``(i) the sum of the deficit reduction contributions under section 302(d)(2) of such Act (as so in effect) and section 412(l)(2) of such Code (as so in effect) for such plan for such plan year and for all preceding plan years beginning with or after the applicable plan year, determined as if the election had not been made, over

``(ii) the sum of the deficit reduction contributions under such sections for such plan years (determined without regard to any increase under subsection (c)(3)).

``(e) Notice.--Not later 30 days after the date of an election under subsection (a) in connection with a plan, the plan administrator shall provide notice pursuant to, and subject to, rules similar to the rules of sections 204(k) of the Employee Retirement Income Security Act of 1974 (as amended by the American Jobs and Closing Tax Loopholes Act of 2010) and 4980F(f) of the Internal Revenue Code of 1986 (as so amended).''.

(b) Eligible Charity Plans.--Section 104 of such Act is amended--

(1) by striking ``eligible cooperative plan'' wherever it appears in subsections (a) and (b) and inserting ``eligible cooperative plan or an eligible charity plan''; and

(2) by adding at the end the following new subsection:

``(d) Eligible Charity Plan Defined.--For purposes of this section, a plan shall be treated as an eligible charity plan for a plan year if--

``(1) the plan is maintained by one or more employers employing employees who are accruing benefits based on service for the plan year,

``(2) such employees are employed in at least 20 States,

``(3) each such employee (other than a de minimis number of employees) is employed by an employer described in section 501(c)(3) of such Code and the primary exempt purpose of each such employer is to provide services with respect to children, and

``(4) the plan sponsor elects (at such time and in such form and manner as shall be prescribed by the Secretary of the Treasury) to be so treated.

Any election under this subsection may be revoked only with the consent of the Secretary of the Treasury.''.

(c) Regulations.--The Secretary of the Treasury may prescribe such regulations as may be necessary to carry out the purposes of the amendments made by this section.

(d) Effective Date.--

(1) In general.--The amendment made by subsection (a) shall apply to plan years beginning on or after January 1, 2009.

(2) Eligible charity plans.--The amendments made by subsection (b) shall apply to plan years beginning after December 31, 2009.

SEC. 303. SUSPENSION OF CERTAIN FUNDING LEVEL LIMITATIONS.

(a) Limitations on Benefit Accruals.--Section 203 of the Worker, Retiree, and Employer Recovery Act of 2008 (Public Law 110-458; 122 Stat. 5118) is amended--

(1) by striking ``the first plan year beginning during the period beginning on October 1, 2008, and ending on September 30, 2009'' and inserting ``any plan year beginning during the period beginning on October 1, 2008, and ending on December 31, 2011'';

(2) by striking ``substituting'' and all that follows through ``for such plan year'' and inserting ``substituting for such percentage the plan's adjusted funding target attainment percentage for the last plan year ending before September 30, 2009,''; and

(3) by striking ``for the preceding plan year is greater'' and inserting ``for such last plan year is greater''.

(b) Social Security Level-income Options.--

(1) ERISA amendment.--Section 206(g)(3)(E) of the Employee Retirement Income Security Act of 1974 is amended by adding at the end the following new sentence: ``For purposes of applying clause (i) in the case of payments the annuity starting date for which occurs on or before December 31, 2011, payments under a social security leveling option shall be treated as not in excess of the monthly amount paid under a single life annuity (plus an amount not in excess of a social security supplement described in the last sentence of section 204(b)(1)(G)).''.

(2) IRC amendment.--Section 436(d)(5) of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence: ``For purposes of applying subparagraph (A) in the case of payments the annuity starting date for which occurs on or before December 31, 2011, payments under a social security leveling option shall be treated as not in excess of the monthly amount paid under a single life annuity (plus an amount not in excess of a social security supplement described in the last sentence of section 411(a)(9)).''.

(3) Effective date.--

(A) In general.--The amendments made by this subsection shall apply to annuity payments the annuity starting date for which occurs on or after January 1, 2011.

(B) Permitted application.--A plan shall not be treated as failing to meet the requirements of sections 206(g) of the Employee Retirement Income Security Act of 1974 (as amended by this subsection) and section 436(d) of the Internal Revenue Code of 1986 (as so amended) if the plan sponsor elects to apply the amendments made by this subsection to payments the annuity starting date for which occurs on or after the date of the enactment of this Act and before January 1, 2011.

(c) Application of Credit Balance With Respect to Limitations on Shutdown Benefits and Unpredictable Contingent Event Benefits.--With respect to plan years beginning on or before December 31, 2011, in applying paragraph (5)(C) of subsection (g) of section 206 of the Employee Retirement Income Security Act of 1974 and subsection (f)(3) of section 436 of the Internal Revenue Code of 1986 in the case of unpredictable contingent events (within the meaning of section 206(g)(1)(C) of such Act and section 436(b)(3) of such Code) occurring on or after January 1, 2010, the references, in clause (i) of such paragraph (5)(C) and subparagraph (A) of such subsection (f)(3), to paragraph

(1)(B) of such subsection (g) and subsection (b)(2) of such section 436 shall be disregarded.

SEC. 304. LOOKBACK FOR CREDIT BALANCE RULE.

(a) Amendment to Erisa.--Paragraph (3) of section 303(f) of the Employee Retirement Income Security Act of 1974 is amended by adding the following at the end thereof:

``(D) Special rule for certain plan years.--

``(i) In general.--For purposes of applying subparagraph

(C) for plan years beginning after June 30, 2009, and on or before December 31, 2011, the ratio determined under such subparagraph for the preceding plan year shall be the greater of--

``(I) such ratio, as determined without regard to this subparagraph, or

``(II) the ratio for such plan for the plan year beginning after June 30, 2007, and on or before June 30, 2008, as determined under rules prescribed by the Secretary of the Treasury.

``(ii) Special rule.--In the case of a plan for which the valuation date is not the first day of the plan year--

``(I) clause (i) shall apply to plan years beginning after December 31, 2008, and on or before December 31, 2010, and

``(II) clause (i)(II) shall apply based on the last plan year beginning before July 1, 2007, as determined under rules prescribed by the Secretary of the Treasury.''.

(b) Amendment to Internal Revenue Code of 1986.--Paragraph

(3) of section 430(f) of the Internal Revenue Code of 1986 is amended by adding the following at the end thereof:

``(D) Special rule for certain plan years.--

``(i) In general.--For purposes of applying subparagraph

(C) for plan years beginning after June 30, 2009, and on or before December 31, 2011, the ratio determined under such subparagraph for the preceding plan year shall be the greater of--

``(I) such ratio, as determined without regard to this subparagraph, or

``(II) the ratio for such plan for the plan year beginning after June 30, 2007, and on or before June 30, 2008, as determined under rules prescribed by the Secretary.

``(ii) Special rule.--In the case of a plan for which the valuation date is not the first day of the plan year--

``(I) clause (i) shall apply to plan years beginning after December 31, 2008, and on or before December 31, 2010, and

``(II) clause (i)(II) shall apply based on the last plan year beginning before July 1, 2007, as determined under rules prescribed by the Secretary.''.

SEC. 305. INFORMATION REPORTING.

(a) In General.--Section 4010(b) of the Employee Retirement Security Act of 1974 (29 U.S.C. 1310(b)) is amended by striking paragraph (1) and inserting the following:

``(1) either of the following requirements are met:

``(A) the funding target attainment percentage (as defined in subsection (d)(2)(B)) at the end of the preceding plan year of a plan maintained by the contributing sponsor or any member of its controlled group is less than 80 percent; or

``(B) the aggregate unfunded vested benefits (as determined under section 4006(a)(3)(E)(iii)) of plans maintained by the contributing sponsor and the members of its controlled group exceed $75,000,000 (disregarding plans with no unfunded vested benefits);''.

(b) Effective Date.--The amendment made by this section shall apply to years beginning after 2009.

SEC. 306. ROLLOVER OF AMOUNTS RECEIVED IN AIRLINE CARRIER

BANKRUPTCY.

(a) General Rules.--

(1) Rollover of airline payment amount.--If a qualified airline employee receives any airline payment amount and transfers any portion of such amount to a traditional IRA within 180 days of receipt of such amount (or, if later, within 180 days of the date of the enactment of this Act), then such amount (to the extent so transferred) shall be treated as a rollover contribution described in section 402(c) of the Internal Revenue Code of 1986. A qualified airline employee making such a transfer may exclude from gross income the amount transferred, in the taxable year in which the airline payment amount was paid to the qualified airline employee by the commercial passenger airline carrier.

(2) Transfer of amounts attributable to airline payment amount following rollover to roth ira.--A qualified airline employee who has contributed an airline payment amount to a Roth IRA that is treated as a qualified rollover contribution pursuant to section 125 of the Worker, Retiree, and Employer Recovery Act of 2008 may transfer to a traditional IRA, in a trustee-to-trustee transfer, all or any part of the contribution (together with any net income allocable to such contribution), and the transfer to the traditional IRA will be deemed to have been made at the time of the rollover to the Roth IRA, if such transfer is made within 180 days of the date of the enactment of this Act. A qualified airline employee making such a transfer may exclude from gross income the airline payment amount previously rolled over to the Roth IRA, to the extent an amount attributable to the previous rollover was transferred to a traditional IRA, in the taxable year in which the airline payment amount was paid to the qualified airline employee by the commercial passenger airline carrier. No amount so transferred to a traditional IRA may be treated as a qualified rollover contribution with respect to a Roth IRA within the 5-taxable year period beginning with the taxable year in which such transfer was made.

(3) Extension of time to file claim for refund.--A qualified airline employee who excludes an amount from gross income in a prior taxable year under paragraph (1) or (2) may reflect such exclusion in a claim for refund filed within the period of limitation under section 6511(a) (or, if later, April 15, 2011).

(b) Treatment of Airline Payment Amounts and Transfers for Employment Taxes.--For purposes of chapter 21 of the Internal Revenue Code of 1986 and section 209 of the Social Security Act, an airline payment amount shall not fail to be treated as a payment of wages by the commercial passenger airline carrier to the qualified airline employee in the taxable year of payment because such amount is excluded from the qualified airline employee's gross income under subsection (a).

(1) Airline payment amount.--

(A) In general.--The term ``airline payment amount'' means any payment of any money or other property which is payable by a commercial passenger airline carrier to a qualified airline employee--

(i) under the approval of an order of a Federal bankruptcy court in a case filed after September 11, 2001, and before January 1, 2007; and

(ii) in respect of the qualified airline employee's interest in a bankruptcy claim against the carrier, any note of the carrier (or amount paid in lieu of a note being issued), or any other fixed obligation of the carrier to pay a lump sum amount.

The amount of such payment shall be determined without regard to any requirement to deduct and withhold tax from such payment under sections 3102(a) and 3402(a).

(B) Exception.--An airline payment amount shall not include any amount payable on the basis of the carrier's future earnings or profits.

(2) Qualified airline employee.--The term ``qualified airline employee'' means an employee or former employee of a commercial passenger airline carrier who was a participant in a defined benefit plan maintained by the carrier which--

(A) is a plan described in section 401(a) of the Internal Revenue Code of 1986 which includes a trust exempt from tax under section 501(a) of such Code; and

(B) was terminated or became subject to the restrictions contained in paragraphs (2) and (3) of section 402(b) of the Pension Protection Act of 2006.

(3) Traditional ira.--The term ``traditional IRA'' means an individual retirement plan (as defined in section 7701(a)(37) of the Internal Revenue Code of 1986) which is not a Roth IRA.

(4) Roth ira.--The term ``Roth IRA'' has the meaning given such term by section 408A(b) of such Code.

(d) Surviving Spouse.--If a qualified airline employee died after receiving an airline payment amount, or if an airline payment amount was paid to the surviving spouse of a qualified airline employee in respect of the qualified airline employee, the surviving spouse of the qualified airline employee may take all actions permitted under section 125 of the Worker, Retiree and Employer Recovery Act of 2008, or under this section, to the same extent that the qualified airline employee could have done had the qualified airline employee survived.

(e) Effective Date.--This section shall apply to transfers made after the date of the enactment of this Act with respect to airline payment amounts paid before, on, or after such date.

Subtitle B--Multiemployer Plans

SEC. 311. OPTIONAL USE OF 30-YEAR AMORTIZATION PERIODS.

(a) Elective Special Relief Rules.--

(1) ERISA amendment.--Section 304(b) of the Employee Retirement Income Security Act of 1974 is amended by adding at the end the following new paragraph:

``(8) Elective special relief rules.--Notwithstanding any other provision of this subsection--

``(A) Amortization of net investment losses.--

``(i) In general.--The plan sponsor of a multiemployer plan with respect to which the solvency test under subparagraph

(B) is met may elect to treat the portion of any experience loss or gain for a plan year that is attributable to the allocable portion of the net investment losses incurred in either or both of the first two plan years ending on or after June 30, 2008, as an experience loss separate from other experience losses or gains to be amortized in equal annual installments (until fully amortized) over the period--

``(I) beginning with the plan year for which the allocable portion is determined, and

``(II) ending with the last plan year in the 30-plan year period beginning with the plan year following the plan year in which such net investment loss was incurred.

``(ii) Coordination with extensions.--If an election is made under clause (i) for any plan year--

``(I) no extension of the amortization period under clause

(i) shall be allowed under subsection (d), and

``(II) if an extension was granted under subsection (d) for any plan year before the plan year for which the election under this subparagraph is made, such extension shall not result in such amortization period exceeding 30 years.

``(iii) Definitions and rules.--For purposes of this subparagraph--

``(I) Net investment losses.--

``(aa) In general.--The net investment loss incurred by a plan in a plan year is equal to the excess of--

``(AA) the expected value of the assets as of the end of the plan year, over

``(BB) the market value of the assets as of the end of the plan year,

including any difference attributable to a criminally fraudulent investment arrangement.

``(bb) Expected value.--For purposes of item (aa), the expected value of the assets as of the end of a plan year is the excess of--

``(AA) the market value of the assets at the beginning of the plan year plus contributions made during the plan year, over

``(BB) disbursements made during the plan year.

The amounts described in subitems (AA) and (BB) shall be adjusted with interest at the valuation rate to the end of the plan year.

``(II) Criminally fraudulent investment arrangements.--The determination as to whether an arrangement is a criminally fraudulent investment arrangement shall be made under rules substantially similar to the rules prescribed by the Secretary of the Treasury for purposes of section 165 of the Internal Revenue Code of 1986.

``(III) Amount attributable to allocable portion of net investment loss.--The amount attributable to the allocable portion of the net investment loss for a plan year shall be an amount equal to the allocable portion of net investment loss for the plan year under subclauses (IV) and (V), increased with interest at the valuation rate determined from the plan year after the plan year in which the net investment loss was incurred.

``(IV) Allocable portion of net investment losses.--Except as provided in subclause (V), the net investment loss incurred in a plan year shall be allocated among the 5 plan years following the plan year in which the investment loss is incurred in accordance with the following table:

``Plan year after the plan year in which the net investment loss was incurred Allocable portion of net investment loss

1st.............................................................\1/2\

2nd.................................................................0

3rd.............................................................\1/6\

4th.............................................................\1/6\

5th.............................................................\1/6\

``(V) Special rule for plans that adopt longer smoother period.--If a plan sponsor elects an extended smoothing period for its asset valuation method under subsection

(c)(2)(B), then the allocable portion of net investment loss for the first two plan years following the plan year the investment loss is incurred is the same as determined under subclause (IV), but the remaining \1/2\ of the net investment loss is allocated ratably over the period beginning with the third plan year following the plan year the net investment loss is incurred and ending with the last plan year in the extended smoothing period.

``(VI) Special rule for overstatement of loss.--If, for a plan year, there is an experience loss for the plan and the amount described in subclause (III) exceeds the total amount of the experience loss for the plan year, then the excess shall be treated as an experience gain.

``(VII) Special rule in years for which overall experience is gain.--If, for a plan year, there is no experience loss for the plan, then, in addition to amortization of net investment losses under clause (i), the amount described in subclause (III) shall be treated as an experience gain in addition to any other experience gain.

``(B) Solvency test.--

``(i) In general.--An election may be made under this paragraph if the election includes certification by the plan actuary in connection with the election that the plan is projected to have a funded percentage at the end of the first 15 plan years that is not less than 100 percent of the funded percentage for the plan year of the election.

``(ii) Funded percentage.--For purposes of clause (i), the term `funded percentage' has the meaning provided in section 305(i)(2), except that the value of the plan's assets referred to in section 305(i)(2)(A) shall be the market value of such assets.

``(iii) Actuarial assumptions.--In making any certification under this subparagraph, the plan actuary shall use the same actuarial estimates, assumptions, and methods as those applicable for the most recent certification under section 305, except that the plan actuary may take into account benefit reductions and increases in contribution rates, under either funding improvement plans adopted under section 305(c) or under section 432(c) of the Internal Revenue Code of 1986 or rehabilitation plans adopted under section 305(e) or under section 432(e) of such Code, that the plan actuary reasonably anticipates will occur without regard to any change in status of the plan resulting from the election.

``(C) Additional restriction on benefit increases.--If an election is made under subparagraph (A), then, in addition to any other applicable restrictions on benefit increases, a plan amendment which is adopted on or after March 10, 2010, and which increases benefits may not go into effect during the period beginning on such date and ending with the second plan year beginning after such date unless--

``(i) the plan actuary certifies that--

``(I) any such increase is paid for out of additional contributions not allocated to the plan immediately before the election to have this paragraph apply to the plan, and

``(II) the plan's funded percentage and projected credit balances for the first 3 plan years ending on or after such date are reasonably expected to be at least as high as such percentage and balances would have been if the benefit increase had not been adopted, or

``(ii) the amendment is required as a condition of qualification under part I of subchapter D of chapter 1 of the Internal Revenue Code of 1986 or to comply with other applicable law.

``(D) Time, form, and manner of election.--An election under this paragraph shall be made not later than June 30, 2011, and shall be made in such form and manner as the Secretary of the Treasury may prescribe.

``(E) Reporting.--A plan sponsor of a plan to which this paragraph applies shall--

``(i) give notice of such election to participants and beneficiaries of the plan, and

``(ii) inform the Pension Benefit Guaranty Corporation of such election in such form and manner as the Pension Benefit Guaranty Corporation may prescribe.''.

(2) IRC amendment.--Section 431(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

``(8) Elective special relief rules.--Notwithstanding any other provision of this subsection--

``(A) Amortization of net investment losses.--

``(i) In general.--The plan sponsor of a multiemployer plan with respect to which the solvency test under subparagraph

(B) is met may elect to treat the portion of any experience loss or gain for a plan year that is attributable to the allocable portion of the net investment losses incurred in either or both of the first two plan years ending on or after June 30, 2008, as an experience loss separate from other experience losses and gains to be amortized in equal annual installments (until fully amortized) over the period--