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

Summary: Airport and Airway Extension Act of 2010, Part III - Amends the Internal Revenue Code to extend through December 31, 2010: (1) increased excise taxes on aviation fuels and the excise tax on air transportation of persons and property; and (2) the expenditure authority for the Airport and Airway Trust Fund.

Makes funds available for the three-month period beginning on October 1, 2010, for airport planning and development and noise compatibility planning projects. Extends through December 31, 2010, the authority of the Secretary of Transportation to make airport improvement project (AIP) grants.

Extends through December 31, 2010: (1) the pilot programs for passenger facility fee authorizations at non-hub airports; and (2) disclosure requirements for large and medium hub airports applying for AIP grants.

Extends through FY2011 the authorization of appropriations for the program of assistance to small communities with insufficient air carrier service.

Directs the Secretary to extend through December 31, 2010, the termination date of insurance coverage for domestic or foreign-flag aircraft. Grants the Secretary discretionary authority to further extend such coverage through March 31, 2011. Extends through March 31, 2011, the authority of the Secretary to limit air carrier liability for claims arising out of acts of terrorism. 

Extends through December 31, 2010: (1) grant eligibility for airports located in the Marshall Islands, Micronesia, and Palau; (2) grants to state and local governments for land use compatibility projects under an AIP; and (3) authority for approving an application of the Metropolitan Washington Airport Authority for an airport development project grant or for permission to impose a passenger facility fee.

Amends the Vision 100--Century of Aviation Reauthorization Act to extend through December 31, 2010: (1) the temporary increase to 95% of the federal government's share of certain AIP project costs; and (2) funding for airport development at Midway Island Airport.

Extends through FY2011 the termination date for final orders issued by the Secretary with respect to the eligibility of a small community for essential air service compensation.

SECTION 1. SHORT TITLE.
    This Act may be cited as the ``Airport and Airway Extension Act of 
2010, Part III''.
SEC. 2. EXTENSION OF TAXES FUNDING AIRPORT AND AIRWAY TRUST FUND.
    (a) Fuel Taxes.--Subparagraph (B) of section 4081(d)(2) of the 
Internal Revenue Code of 1986 is amended by striking ``September 30, 
2010'' and inserting ``December 31, 2010''.
    (b) Ticket Taxes.--
        (1) Persons.--Clause (ii) of section 4261(j)(1)(A) of the 
    Internal Revenue Code of 1986 is amended by striking ``September 
    30, 2010'' and inserting ``December 31, 2010''.
        (2) Property.--Clause (ii) of section 4271(d)(1)(A) of such 
    Code is amended by striking ``September 30, 2010'' and inserting 
    ``December 31, 2010''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2010.
SEC. 3. EXTENSION OF AIRPORT AND AIRWAY TRUST FUND EXPENDITURE 
AUTHORITY.
    (a) In General.--Paragraph (1) of section 9502(d) of the Internal 
Revenue Code of 1986 is amended--
        (1) by striking ``October 1, 2010'' and inserting ``January 1, 
    2011''; and
        (2) by inserting ``or the Airport and Airway Extension Act of 
    2010, Part III'' before the semicolon at the end of subparagraph 
    (A).
    (b) Conforming Amendment.--Paragraph (2) of section 9502(e) of such 
Code is amended by striking ``October 1, 2010'' and inserting ``January 
1, 2011''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2010.
SEC. 4. EXTENSION OF AIRPORT IMPROVEMENT PROGRAM.
    (a) Authorization of Appropriations.--
        (1) In general.--Section 48103 of title 49, United States Code, 
    is amended--
            (A) by striking ``and'' at the end of paragraph (6);
            (B) by striking the period at the end of paragraph (7) and 
        inserting ``; and''; and
            (C) by inserting after paragraph (7) the following:
        ``(8) $925,000,000 for the 3-month period beginning on October 
    1, 2010.''.
        (2) Obligation of amounts.--Subject to limitations specified in 
    advance in appropriation Acts, sums made available pursuant to the 
    amendment made by paragraph (1) may be obligated at any time 
    through September 30, 2011, and shall remain available until 
    expended.
    (b) Project Grant Authority.--Section 47104(c) of such title is 
amended by striking ``September 30, 2010,'' and inserting ``December 
31, 2010,''.
SEC. 5. EXTENSION OF EXPIRING AUTHORITIES.
    (a) Section 40117(l)(7) of title 49, United States Code, is amended 
by striking ``October 1, 2010.'' and inserting ``January 1, 2011.''.
    (b) Section 41743(e)(2) of such title is amended by striking 
``2010'' and inserting ``2011''.
    (c) Section 44302(f)(1) of such title is amended--
        (1) by striking ``September 30, 2010,'' and inserting 
    ``December 31, 2010,''; and
        (2) by striking ``December 31, 2010,'' and inserting ``March 
    31, 2011,''.
    (d) Section 44303(b) of such title is amended by striking 
``December 31, 2010,'' and inserting ``March 31, 2011,''.
    (e) Section 47107(s)(3) of such title is amended by striking 
``October 1, 2010.'' and inserting ``January 1, 2011.''.
    (f) Section 47115(j) of such title is amended by inserting ``and 
for the portion of fiscal year 2011 ending before January 1, 2011,'' 
after ``2010,''.
    (g) Section 47141(f) of such title is amended by striking 
``September 30, 2010.'' and inserting ``December 31, 2010.''.
    (h) Section 49108 of such title is amended by striking ``September 
30, 2010,'' and inserting ``December 31, 2010,''.
    (i) Section 161 of the Vision 100--Century of Aviation 
Reauthorization Act (49 U.S.C. 47109 note) is amended by inserting ``, 
or in the portion of fiscal year 2011 ending before January 1, 2011,'' 
after ``fiscal year 2009 or 2010''.
    (j) Section 186(d) of such Act (117 Stat. 2518) is amended by 
inserting ``and for the portion of fiscal year 2011 ending before 
January 1, 2011,'' after ``October 1, 2010,''.
    (k) Section 409(d) of such Act (49 U.S.C. 41731 note) is amended by 
striking ``September 30, 2010.'' and inserting ``September 30, 2011.''.
    (l) The amendments made by this section shall take effect on 
October 1, 2010.
SEC. 6. TECHNICAL CORRECTIONS.
    Effective as of August 1, 2010, and as if included therein as 
enacted, the Airline Safety and Federal Aviation Administration 
Extension Act of 2010 (Public Law 111-216) is amended as follows:
        (1) In section 202(a) (124 Stat. 2351) by inserting ``of title 
    49, United States Code,'' before ``is amended''.
        (2) In section 202(b) (124 Stat. 2351) by inserting ``of such 
    title'' before ``is amended''.
        (3) In section 203(c)(1) (124 Stat. 2356) by inserting ``of 
    such title'' before ``(as redesignated''.
        (4) In section 203(c)(2) (124 Stat. 2357) by inserting ``of 
    such title'' before ``(as redesignated''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.