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[111th Congress Public Law 312]
[From the U.S. Government Printing Office]

[[Page 3295]]

                        TAX RELIEF, UNEMPLOYMENT 
                     INSURANCE REAUTHORIZATION, AND 
                        JOB CREATION ACT OF 2010

[[Page 124 STAT. 3296]]

Public Law 111-312
111th Congress

                                 An Act

 
  To amend the Internal Revenue Code of 1986 to extend the funding and 
  expenditure authority of the Airport and Airway Trust Fund, to amend 
 title 49, United States Code, to extend authorizations for the airport 
     improvement program, and for other purposes. <<NOTE: Dec. 17, 
                         2010 -  [H.R. 4853]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Tax Relief, 
Unemployment Insurance Reauthorization, and Job Creation Act of 2010.>> 
SECTION 1. SHORT TITLE; ETC.

    (a) <<NOTE: 26 USC 1 note.>>  Short Title.--This Act may be cited as 
the ``Tax Relief, Unemployment Insurance Reauthorization, and Job 
Creation Act of 2010''.

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

Sec. 1. Short title; etc.

               TITLE I--TEMPORARY EXTENSION OF TAX RELIEF

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

         TITLE II--TEMPORARY EXTENSION OF INDIVIDUAL AMT RELIEF

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

                 TITLE III--TEMPORARY ESTATE TAX RELIEF

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

         TITLE IV--TEMPORARY EXTENSION OF INVESTMENT INCENTIVES

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

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

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

[[Page 124 STAT. 3297]]

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

              TITLE VI--TEMPORARY EMPLOYEE PAYROLL TAX CUT

Sec. 601. Temporary employee payroll tax cut.

      TITLE VII--TEMPORARY EXTENSION OF CERTAIN EXPIRING PROVISIONS

                           Subtitle A--Energy

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

                    Subtitle B--Individual Tax Relief

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

                     Subtitle C--Business Tax Relief

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

[[Page 124 STAT. 3298]]

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

            Subtitle D--Temporary Disaster Relief Provisions

                    subpart a--new york liberty zone

Sec. 761. Tax-exempt bond financing.

                           subpart b--go zone

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

                    TITLE VIII--BUDGETARY PROVISIONS

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

               TITLE I--TEMPORARY EXTENSION OF TAX RELIEF

SEC. 101. TEMPORARY EXTENSION OF 2001 TAX RELIEF.

    (a) Temporary Extension.--
            (1) In general.--Section 901 of the Economic Growth and Tax 
        Relief Reconciliation Act of 2001 <<NOTE: 26 USC 1 note.>>  is 
        amended by striking ``December 31, 2010'' both places it appears 
        and inserting ``December 31, 2012''.
            (2) <<NOTE: 26 USC 1 note.>>  Effective date.--The amendment 
        made by this subsection shall take effect as if included in the 
        enactment of the Economic Growth and Tax Relief Reconciliation 
        Act of 2001.

    (b) Separate Sunset for Expansion of Adoption Benefits Under the 
Patient Protection and Affordable Care Act.--
            (1) In general.--Subsection (c) of section 10909 of the 
        Patient Protection and Affordable Care Act <<NOTE: Ante, p. 
        1023.>>  is amended to read as follows:

    ``(c) Sunset Provision.--Each provision of law amended by this 
section is amended to read as such provision would read if this section 
had never been enacted. <<NOTE: Applicability.>>  The amendments made by 
the preceding sentence shall apply to taxable years beginning after 
December 31, 2011.''.
            (2) Conforming amendment.--Subsection (d) of section 10909 
        of such Act is <<NOTE: Ante, p. 1024.>>  amended by striking 
        ``The amendments'' and inserting ``Except as provided in 
        subsection (c), the amendments''.
SEC. 102. TEMPORARY EXTENSION OF 2003 TAX RELIEF.

    (a) In General.--Section 303 of the Jobs and Growth Tax Relief 
Reconciliation Act of 2003 <<NOTE: 26 USC 1 note.>>  is amended by 
striking ``December 31, 2010'' and inserting ``December 31, 2012''.

[[Page 124 STAT. 3299]]

    (b) <<NOTE: 26 USC 1 note.>>  Effective Date.--The amendment made by 
this section shall take effect as if included in the enactment of the 
Jobs and Growth Tax Relief Reconciliation Act of 2003.
SEC. 103. TEMPORARY EXTENSION OF 2009 TAX RELIEF.

    (a) American Opportunity Tax Credit.--
            (1) In general.--Section 25A(i) <<NOTE: 26 USC 25A.>>  is 
        amended by striking ``or 2010'' and inserting ``, 2010, 2011, or 
        2012''.
            (2) Treatment of possessions.--Section 1004(c)(1) of the 
        American Recovery and Reinvestment Tax Act of 2009 <<NOTE: 26 
        USC 25A note.>>  is amended by striking ``and 2010'' each place 
        it appears and inserting ``, 2010, 2011, and 2012''.

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

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

    (d) <<NOTE: 26 USC 24 note.>>  Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2010.

         TITLE II--TEMPORARY EXTENSION OF INDIVIDUAL AMT RELIEF

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

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

    (b) <<NOTE: 26 USC 55 note.>>  Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2009.

    (c) <<NOTE: 26 USC 1 note.>>  Repeal of EGTRRA Sunset.--Title IX of 
the Economic Growth and Tax Relief Reconciliation Act of 2001 (relating 
to sunset of provisions of such Act) shall not apply to title VII of 
such Act (relating to alternative minimum tax).
SEC. 202. TEMPORARY EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF 
                        FOR NONREFUNDABLE PERSONAL CREDITS.

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

    (b) <<NOTE: 26 USC 26 note.>>   Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2009.

[[Page 124 STAT. 3300]]

                 TITLE III--TEMPORARY ESTATE TAX RELIEF

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

    (a) In General.--Each provision of law amended by subtitle A or E of 
title V of the Economic Growth and Tax Relief Reconciliation Act of 
2001 <<NOTE: 26 USC 121, 684, 1014, 1022, 1040, 1221, 1246, 1291, 1296, 
2210, 2664, 6018, 6019, 6075, 6716, 7701.>>  is amended to read as such 
provision would read if such subtitle had never been enacted.

    (b) <<NOTE: Effective date. 26 USC 2505 note.>>  Conforming 
Amendment.--On and after January 1, 2011, paragraph (1) of section 
2505(a) of the Internal Revenue Code of 1986 <<NOTE: 26 USC 2505.>>  is 
amended to read as such paragraph would read if section 521(b)(2) of the 
Economic Growth and Tax Relief Reconciliation Act of 2001 had never been 
enacted.

    (c) Special Election With Respect to Estates of Decedents Dying in 
2010. <<NOTE: Time period. 26 USC 2001 note.>> --Notwithstanding 
subsection (a), in the case of an estate of a decedent dying after 
December 31, 2009, and before January 1, 2011, the executor (within the 
meaning of section 2203 of the Internal Revenue Code of 1986) may elect 
to apply such Code as though the amendments made by subsection (a) do 
not apply with respect to chapter 11 of such Code and with respect to 
property acquired or passing from such decedent (within the meaning of 
section 1014(b) of such Code).  Such election shall be made at such time 
and in such manner as the Secretary of the Treasury or the Secretary's 
delegate shall provide. Such an election once made shall be revocable 
only with the consent of the Secretary of the Treasury or the 
Secretary's delegate. For purposes of section 2652(a)(1) of such Code, 
the determination of whether any property is subject to the tax imposed 
by such chapter 11 shall be made without regard to any election made 
under this subsection.

    (d) Extension of Time for Performing Certain Acts.--
            (1) <<NOTE: 26 USC 6075 note.>>  Estate tax.--In the case of 
        the estate of a decedent dying after December 31, 2009, and 
        before the date of the enactment of this Act, the due date for--
                    (A) filing any return under section 6018 of the 
                Internal Revenue Code of 1986 (including any election 
                required to be made on such a return) as such section is 
                in effect after the date of the enactment of this Act 
                without regard to any election under subsection (c),
                    (B) making any payment of tax under chapter 11 of 
                such Code, and
                    (C) making any disclaimer described in section 
                2518(b) of such Code of an interest in property passing 
                by reason of the death of such decedent,
        shall not be earlier than the date which is 9 months after the 
        date of the enactment of this Act.
            (2) <<NOTE: Deadline. 26 USC 2662 note.>>  Generation-
        skipping tax.--In the case of any generation-skipping transfer 
        made after December 31, 2009, and before the date of the 
        enactment of this Act, the due date for filing any return under 
        section 2662 of the Internal Revenue Code of 1986 (including any 
        election required to be made on such a return) shall not be 
        earlier than the date which is 9 months after the date of the 
        enactment of this Act.

[[Page 124 STAT. 3301]]

    (e) <<NOTE: 26 USC 121 note.>>  Effective Date.--Except as otherwise 
provided in this section, the amendments made by this section shall 
apply to estates of decedents dying, and transfers made, after December 
31, 2009.
SEC. 302. MODIFICATIONS TO ESTATE, GIFT, AND GENERATION-SKIPPING 
                        TRANSFER TAXES.

    (a) Modifications to Estate Tax.--
            (1) $5,000,000 applicable exclusion amount.--Subsection (c) 
        of section 2010 <<NOTE: 26 USC 2010.>>  is amended to read as 
        follows:

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

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

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

    (b) Modifications to Gift Tax.--
            (1) Restoration of unified credit against gift tax.--
                    (A) In general.--Paragraph (1) of section 2505(a), 
                after the application of section 301(b), is amended by 
                striking ``(determined as if the applicable exclusion 
                amount were $1,000,000)''.
                    (B) <<NOTE: 26 USC 2505 note.>>  Effective date.--
                The amendment made by this paragraph shall apply to 
                gifts made after December 31, 2010.
            (2) <<NOTE: Effective date. 26 USC 2502 note.>>  
        Modification of gift tax rate.--On and after January 1, 2011, 
        subsection (a) of section 2502 is amended to read as such 
        subsection would read if section 511(d) of the Economic Growth 
        and Tax Relief Reconciliation Act of 2001 had never been 
        enacted.

[[Page 124 STAT. 3302]]

    (c) <<NOTE: Time period. 26 USC 2641 note.>>  Modification of 
Generation-skipping Transfer Tax.--In the case of any generation-
skipping transfer made after December 31, 2009, and before January 1, 
2011, the applicable rate determined under section 2641(a) of the 
Internal Revenue Code of 1986 shall be zero.

    (d) Modifications of Estate and Gift Taxes to Reflect Differences in 
Credit Resulting From Different Tax Rates.--
            (1) Estate tax.--
                    (A) In general.--Section 2001(b)(2) <<NOTE: 26 USC 
                2001.>>  is amended by striking ``if the provisions of 
                subsection (c) (as in effect at the decedent's death)'' 
                and inserting ``if the modifications described in 
                subsection (g)''.
                    (B) Modifications.--Section 2001 is amended by 
                adding at the end the following new subsection:

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

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

    (e) Conforming Amendment.--Section 2511 is amended by striking 
subsection (c).
    (f) <<NOTE: 26 USC 2001 note.>>  Effective Date.--Except as 
otherwise provided in this subsection, the amendments made by this 
section shall apply to estates of decedents dying, generation-skipping 
transfers, and gifts made, after December 31, 2009.
SEC. 303. APPLICABLE EXCLUSION AMOUNT INCREASED BY UNUSED 
                        EXCLUSION AMOUNT OF DECEASED SPOUSE.

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

[[Page 124 STAT. 3303]]

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

    (b) Conforming Amendments.--
            (1) Paragraph (1) of section 2505(a), as amended by section 
        302(b)(1), <<NOTE: 26 USC 2505.>>  is amended to read as 
        follows:
            ``(1) the applicable credit amount in effect under section 
        2010(c) which would apply if the donor died as of the end of the 
        calendar year, reduced by''.
            (2) Section 2631(c) is amended by striking ``the applicable 
        exclusion amount'' and inserting ``the basic exclusion amount''.
            (3) Section 6018(a)(1) is amended by striking ``applicable 
        exclusion amount'' and inserting ``basic exclusion amount''.

    (c) <<NOTE: Applicability. 26 USC 2010 note.>>  Effective Dates.--

[[Page 124 STAT. 3304]]

            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to estates of 
        decedents dying and gifts made after December 31, 2010.
            (2) Conforming amendment relating to generation-skipping 
        transfers.--The amendment made by subsection (b)(2) shall apply 
        to generation-skipping transfers after December 31, 2010.
SEC. 304. <<NOTE: 26 USC 121 note.>>  APPLICATION OF EGTRRA SUNSET 
                        TO THIS TITLE.

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

         TITLE IV--TEMPORARY EXTENSION OF INVESTMENT INCENTIVES

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

    (a) In General.--Paragraph (2) of section 168(k) <<NOTE: 26 USC 
168.>>  is amended--
            (1) by striking ``January 1, 2012'' in subparagraph (A)(iv) 
        and inserting ``January 1, 2014'', and
            (2) by striking ``January 1, 2011'' each place it appears 
        and inserting ``January 1, 2013''.

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

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

[[Page 124 STAT. 3305]]

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

    (d) Conforming Amendments.--
            (1) The heading for subsection (k) of section 168 <<NOTE: 26 
        USC 168.>>  is amended by striking ``January 1, 2011'' and 
        inserting ``January 1, 2013''.
            (2) The heading for clause (ii) of section 168(k)(2)(B) is 
        amended by striking ``pre-january 1, 2011'' and inserting ``pre-
        january 1, 2013''.
            (3) Subparagraph (D) of section 168(k)(4) is amended--
                    (A) by striking clauses (iv) and (v),
                    (B) by inserting ``and'' at the end of clause (ii), 
                and
                    (C) by striking the comma at the end of clause (iii) 
                and inserting a period.
            (4) Paragraph (5) of section 168(l) is amended--

[[Page 124 STAT. 3306]]

                    (A) by inserting ``and'' at the end of subparagraph 
                (A),
                    (B) by striking subparagraph (B), and
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B).
            (5) Subparagraph (C) of section 168(n)(2) <<NOTE: 26 USC 
        168.>>  is amended by striking ``January 1, 2011'' and inserting 
        ``January 1, 2013''.
            (6) Subparagraph (D) of section 1400L(b)(2) is amended by 
        striking ``January 1, 2011'' and inserting ``January 1, 2013''.
            (7) Subparagraph (B) of section 1400N(d)(3) is amended by 
        striking ``January 1, 2011'' and inserting ``January 1, 2013''.

    (e) <<NOTE: Applicability. 26 USC 168 note.>>  Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to property placed 
        in service after December 31, 2010, in taxable years ending 
        after such date.
            (2) Temporary 100 percent expensing.--The amendment made by 
        subsection (b) shall apply to property placed in service after 
        September 8, 2010, in taxable years ending after such date.
SEC. 402. TEMPORARY EXTENSION OF INCREASED SMALL BUSINESS 
                        EXPENSING.

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

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

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

[[Page 124 STAT. 3307]]

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

    (d) Computer Software.--Section 179(d)(1)(A)(ii) <<NOTE: 26 USC 
179.>>  is amended by striking ``2012'' and inserting ``2013''.

    (e) Conforming Amendment.--Section 179(c)(2) is amended by striking 
``2012'' and inserting ``2013''.
    (f) <<NOTE: 26 USC 179 note.>>  Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2011.

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

SEC. 501. TEMPORARY EXTENSION OF UNEMPLOYMENT INSURANCE 
                        PROVISIONS.

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

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

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

    (c) <<NOTE: 26 USC 3304 note.>>  Effective Date.--The amendments 
made by this section shall take effect as if included in the enactment 
of the Unemployment Compensation Extension Act of 2010 (Public Law 111-
205).
SEC. 502. <<NOTE: 26 USC 3304.>>  TEMPORARY MODIFICATION OF 
                        INDICATORS UNDER THE EXTENDED BENEFIT 
                        PROGRAM.

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

[[Page 124 STAT. 3308]]

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

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

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

    (a) In General.--Section 6402(f)(3)(C), as amended by section 801 of 
the Claims Resolution Act of 2010, <<NOTE: 26 USC 6402.>>  is amended by 
striking ``is not a covered unemployment compensation debt'' and 
inserting ``is a covered unemployment compensation debt''.

    (b) <<NOTE: 26 USC 6402 note.>>  Effective Date.--The amendment made 
by subsection (a) shall take effect as if included in section 801 of the 
Claims Resolution Act of 2010.
SEC. 504. TECHNICAL CORRECTION RELATING TO REPEAL OF CONTINUED 
                        DUMPING AND SUBSIDY OFFSET.

    (a) In General.--Section 822(2)(A) of the Claims Resolution Act of 
2010 <<NOTE: Ante, p. 3163.>>  is amended by striking ``or'' and 
inserting ``and''.

    (b) <<NOTE: 19 USC 1675c note.>>  Effective Date.--The amendment 
made by subsection (a) shall take effect as if included in the 
provisions of the Claims Resolution Act of 2010.
SEC. 505. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER THE 
                        RAILROAD UNEMPLOYMENT INSURANCE ACT.

    (a) Extension.--Section 2(c)(2)(D)(iii) of the Railroad Unemployment 
Insurance Act, as added by section 2006 of the American Recovery and 
Reinvestment Act of 2009 (Public Law 111-5) and as amended by section 9 
of the Worker, Homeownership, and Business Assistance Act of 2009 
(Public Law 111-92), <<NOTE: Ante, p. 2988.>>  is amended--
            (1) by striking ``June 30, 2010'' and inserting ``June 30, 
        2011''; and
            (2) by striking ``December 31, 2010'' and inserting 
        ``December 31, 2011''.

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

[[Page 124 STAT. 3309]]

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

              TITLE VI--TEMPORARY EMPLOYEE PAYROLL TAX CUT

SEC. 601. <<NOTE: 26 USC 1401 note.>>  TEMPORARY EMPLOYEE PAYROLL 
                        TAX CUT.

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

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

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

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

[[Page 124 STAT. 3310]]

        Equivalent Benefit Account established under section 15A(a) of 
        the Railroad Retirement Act of 1974 (45 U.S.C. 231n-1(a)) 
        amounts equal to the reduction in revenues to the Treasury by 
        reason of the application of subsection (a)(2). Amounts 
        appropriated by the preceding sentence shall be transferred from 
        the general fund at such times and in such manner as to 
        replicate to the extent possible the transfers which would have 
        occurred to such Account had such amendments not been enacted.
            (3) <<NOTE: Applicability.>>  Coordination with other 
        federal laws.--For purposes of applying any provision of Federal 
        law other than the provisions of the Internal Revenue Code of 
        1986, the rate of tax in effect under section 3101(a) of such 
        Code shall be determined without regard to the reduction in such 
        rate under this section.

      TITLE VII--TEMPORARY EXTENSION OF CERTAIN EXPIRING PROVISIONS

                           Subtitle A--Energy

SEC. 701. INCENTIVES FOR BIODIESEL AND RENEWABLE DIESEL.

    (a) Credits for Biodiesel and Renewable Diesel Used as Fuel.--
Subsection (g) of section 40A <<NOTE: 26 USC 40A.>>  is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.

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

    (c) <<NOTE: Claims. Deadline. 26 USC 6426 note.>>  Special Rule for 
2010.--Notwithstanding any other provision of law, in the case of any 
biodiesel mixture credit properly determined under section 6426(c) of 
the Internal Revenue Code of 1986 for periods during 2010, such credit 
shall be allowed, and any refund or payment attributable to such credit 
(including any payment under section 6427(e) of such Code) shall be 
made, only in such manner as the Secretary of the Treasury (or the 
Secretary's delegate) shall provide. <<NOTE: Guidance.>> Such Secretary 
shall issue guidance within 30 days after the date of the enactment of 
this Act providing for a one-time submission of claims covering periods 
during 2010. <<NOTE: Time period.>> Such guidance shall provide for a 
180-day period for the submission of such claims (in such manner as 
prescribed by such Secretary) to begin not later than 30 days after such 
guidance is issued. Such claims shall be paid by such Secretary not 
later than 60 days after receipt. If such Secretary has not paid 
pursuant to a claim filed under this subsection within 60 days after the 
date of the filing of such claim, the claim shall be paid with interest 
from such date determined by using the overpayment rate and method under 
section 6621 of such Code.

    (d) <<NOTE: 26 USC 40A note.>>  Effective Date.--The amendments made 
by this section shall apply to fuel sold or used after December 31, 
2009.

[[Page 124 STAT. 3311]]

SEC. 702. CREDIT FOR REFINED COAL FACILITIES.

    (a) In General.--Subparagraph (B) of section 45(d)(8) <<NOTE: 26 USC 
45.>>  is amended by striking ``January 1, 2010'' and inserting 
``January 1, 2012''.

    (b) <<NOTE: 26 USC 45 note.>>  Effective Date.--The amendment made 
by this section shall apply to facilities placed in service after 
December 31, 2009.
SEC. 703. NEW ENERGY EFFICIENT HOME CREDIT.

    (a) In General.--Subsection (g) of section 45L is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) <<NOTE: 26 USC 45L note.>>  Effective Date.--The amendment made 
by this section shall apply to homes acquired after December 31, 2009.
SEC. 704. EXCISE TAX CREDITS AND OUTLAY PAYMENTS FOR ALTERNATIVE 
                        FUEL AND ALTERNATIVE FUEL MIXTURES.

    (a) In General.--Sections 6426(d)(5), 6426(e)(3), and 6427(e)(6)(C) 
are each amended by striking ``December 31, 2009'' and inserting 
``December 31, 2011''.
    (b) Exclusion of Black Liquor From Credit Eligibility.--The last 
sentence of section 6426(d)(2) is amended by striking ``or biodiesel'' 
and inserting ``biodiesel, or any fuel (including lignin, wood residues, 
or spent pulping liquors) derived from the production of paper or 
pulp''.
    (c) <<NOTE: Claims. Deadline. 26 USC 6426 note.>>  Special Rule for 
2010.--Notwithstanding any other provision of law, in the case of any 
alternative fuel credit or any alternative fuel mixture credit properly 
determined under subsection (d) or (e) of section 6426 of the Internal 
Revenue Code of 1986 for periods during 2010, such credit shall be 
allowed, and any refund or payment attributable to such credit 
(including any payment under section 6427(e) of such Code) shall be 
made, only in such manner as the Secretary of the Treasury (or the 
Secretary's delegate) shall provide. <<NOTE: Guidance.>> Such Secretary 
shall issue guidance within 30 days after the date of the enactment of 
this Act providing for a one-time submission of claims covering periods 
during 2010. Such <<NOTE: Time period.>> guidance shall provide for a 
180-day period for the submission of such claims (in such manner as 
prescribed by such Secretary) to begin not later than 30 days after such 
guidance is issued. Such claims shall be paid by such Secretary not 
later than 60 days after receipt. If such Secretary has not paid 
pursuant to a claim filed under this subsection within 60 days after the 
date of the filing of such claim, the claim shall be paid with interest 
from such date determined by using the overpayment rate and method under 
section 6621 of such Code.

    (d) <<NOTE: 26 USC 6426 note.>>  Effective Date.--The amendments 
made by this section shall apply to fuel sold or used after December 31, 
2009.
SEC. 705. SPECIAL RULE FOR SALES OR DISPOSITIONS TO IMPLEMENT FERC 
                        OR STATE ELECTRIC RESTRUCTURING POLICY FOR 
                        QUALIFIED ELECTRIC UTILITIES.

    (a) In General.--Paragraph (3) of section 451(i) is amended by 
striking ``January 1, 2010'' and inserting ``January 1, 2012''.
    (b) <<NOTE: 26 USC 451 note.>>  Effective Date.--The amendment made 
by this section shall apply to dispositions after December 31, 2009.
SEC. 706. SUSPENSION OF LIMITATION ON PERCENTAGE DEPLETION FOR OIL 
                        AND GAS FROM MARGINAL WELLS.

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

[[Page 124 STAT. 3312]]

    (b) <<NOTE: 26 USC 613A note.>>  Effective Date.--The amendment made 
by this section shall apply to taxable years beginning after December 
31, 2009.
SEC. 707. EXTENSION OF GRANTS FOR SPECIFIED ENERGY PROPERTY IN 
                        LIEU OF TAX CREDITS.

    (a) In General.--Subsection (a) of section 1603 of division B of the 
American Recovery and Reinvestment Act of 2009 <<NOTE: 26 USC 48 
note.>>  is amended--
            (1) in paragraph (1), by striking ``2009 or 2010'' and 
        inserting ``2009, 2010, or 2011'', and
            (2) in paragraph (2)--
                    (A) by striking ``after 2010'' and inserting ``after 
                2011'', and
                    (B) by striking ``2009 or 2010'' and inserting 
                ``2009, 2010, or 2011''.

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

    (a) Extension of Income Tax Credit for Alcohol Used as Fuel.--
            (1) In general.--Paragraph (1) of section 40(e) is amended--
                    (A) by striking ``December 31, 2010'' in 
                subparagraph (A) and inserting ``December 31, 2011'', 
                and
                    (B) by striking ``January 1, 2011'' in subparagraph 
                (B) and inserting ``January 1, 2012''.
            (2) Reduced amount for ethanol blenders.--Subsection (h) of 
        section 40 is amended by striking ``2010'' both places it 
        appears and inserting ``2011''.
            (3) <<NOTE: 26 USC 40 note.>>  Effective date.--The 
        amendments made by this subsection shall apply to periods after 
        December 31, 2010.

    (b) Extension of Excise Tax Credit for Alcohol Used as Fuel.--
            (1) In general.--Paragraph (6) of section 6426(b) is amended 
        by striking ``December 31, 2010'' and inserting ``December 31, 
        2011''.
            (2) <<NOTE: 26 USC 6426 note.>>  Effective date.--The 
        amendment made by this subsection shall apply to periods after 
        December 31, 2010.

    (c) Extension of Payment for Alcohol Fuel Mixture.--
            (1) In general.--Subparagraph (A) of section 6427(e)(6) is 
        amended by striking ``December 31, 2010'' and inserting 
        ``December 31, 2011''.
            (2) <<NOTE: 26 USC 6427 note.>>  Effective date.--The 
        amendment made by this subsection shall apply to sales and uses 
        after December 31, 2010.

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

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

[[Page 124 STAT. 3313]]

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

    (b) Clothes Washers.--Paragraph (2) of section 45M(b) <<NOTE: 26 USC 
45M.>>  is amended by striking ``and'' at the end of subparagraph (C), 
by striking the period at the end of subparagraph (D) and inserting a 
comma, and by adding at the end the following new subparagraphs:
                    ``(E) $175 in the case of a top-loading clothes 
                washer manufactured in calendar year 2011 which meets or 
                exceeds a 2.2 modified energy factor and does not exceed 
                a 4.5 water consumption factor, and
                    ``(F) $225 in the case of a clothes washer 
                manufactured in calendar year 2011--
                          ``(i) which is a top-loading clothes washer 
                      and which meets or exceeds a 2.4 modified energy 
                      factor and does not exceed a 4.2 water consumption 
                      factor, or
                          ``(ii) which is a front-loading clothes washer 
                      and which meets or exceeds a 2.8 modified energy 
                      factor and does not exceed a 3.5 water consumption 
                      factor.''.

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

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

[[Page 124 STAT. 3314]]

                    (A) by striking ``subsection (b)(3)(D)'' and 
                inserting ``subsection (b)(3)(F)'', and
                    (B) by striking ``subsection (b)(2)(D)'' and 
                inserting ``subsection (b)(2)(F)''.
            (3) Gross receipts limitation.--Paragraph (3) of section 
        45M(e) <<NOTE: 26 USC 45M.>>  is amended by striking ``2 
        percent'' and inserting ``4 percent''.

    (e) <<NOTE: Applicability. 26 USC 45M note.>>  Effective Dates.--
            (1) In general.--The amendments made by subsections (a), 
        (b), and (c) shall apply to appliances produced after December 
        31, 2010.
            (2) Limitations.--The amendments made by subsection (d) 
        shall apply to taxable years beginning after December 31, 2010.
SEC. 710. CREDIT FOR NONBUSINESS ENERGY PROPERTY.

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

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

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

[[Page 124 STAT. 3315]]

                is in effect on the date of the enactment of the 
                American Recovery and Reinvestment Tax Act of 2009''.
                    (B) Wood stoves.--Subparagraph (E) of section 
                25C(d)(3) <<NOTE: 26 USC 25C.>>  is amended by striking 
                ``, as measured using a lower heating value''.
                    (C)  Oil furnaces and hot water boilers.--
                          (i) In general.--Paragraph (4) of section 
                      25C(d) is amended to read as follows:
            ``(4) <<NOTE: Definition.>>  Qualified natural gas, propane, 
        or oil furnace or hot water boiler.--The term `qualified natural 
        gas, propane, or oil furnace or hot water boiler' means a 
        natural gas, propane, or oil furnace or hot water boiler which 
        achieves an annual fuel utilization efficiency rate of not less 
        than 95.''.
                          (ii) Conforming amendment.--Clause (ii) of 
                      section 25C(d)(2)(A) is amended to read as 
                      follows:
                          ``(ii) a qualified natural gas, propane, or 
                      oil furnace or hot water boiler, or''.
                    (D) Exterior windows, doors, and skylights.--
                          (i) In general.--Subsection (c) of section 25C 
                      is amended by striking paragraph (4).
                          (ii) Application of energy star standards.--
                      Paragraph (1) of section 25C(c) is amended by 
                      inserting ``an exterior window, a skylight, an 
                      exterior door,'' after ``in the case of'' in the 
                      matter preceding subparagraph (A).
                    (E) Insulation.--Subparagraph (A) of section 
                25C(c)(2) is amended by striking ``and meets the 
                prescriptive criteria for such material or system 
                established by the 2009 International Energy 
                Conservation Code, as such Code (including supplements) 
                is in effect on the date of the enactment of the 
                American Recovery and Reinvestment Tax Act of 2009''.
            (3) Subsidized energy financing.--Subsection (e) of section 
        25C is amended by adding at the end the following new paragraph:
            ``(3) Property financed by subsidized energy financing.--For 
        purposes of determining the amount of expenditures made by any 
        individual with respect to any property, there shall not be 
        taken into account expenditures which are made from subsidized 
        energy financing (as defined in section 48(a)(4)(C)).''.

    (c) <<NOTE: 26 USC 25C note.>>  Effective Date.--The amendments made 
by this section shall apply to property placed in service after December 
31, 2010.
SEC. 711. ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY.

    (a) Extension of Credit.--Paragraph (2) of section 30C(g) is amended 
by striking ``December 31, 2010'' and inserting ``December 31, 2011.''.
    (b) <<NOTE: 26 USC 30C note.>>  Effective Date.--The amendment made 
by this section shall apply to property placed in service after December 
31, 2010.

[[Page 124 STAT. 3316]]

                    Subtitle B--Individual Tax Relief

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

    (a) In General.--Subparagraph (D) of section 62(a)(2) <<NOTE: 26 USC 
62.>>  is amended by striking ``or 2009'' and inserting ``2009, 2010, or 
2011''.

    (b) <<NOTE: 26 USC 62 note.>>  Effective Date.--The amendment made 
by this section shall apply to taxable years beginning after December 
31, 2009.
SEC. 722. DEDUCTION OF STATE AND LOCAL SALES TAXES.

    (a) In General.--Subparagraph (I) of section 164(b)(5) is amended by 
striking ``January 1, 2010'' and inserting ``January 1, 2012''.
    (b) <<NOTE: 26 USC 164 note.>>  Effective Date.--The amendment made 
by this section shall apply to taxable years beginning after December 
31, 2009.
SEC. 723. CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY MADE FOR 
                        CONSERVATION PURPOSES.

    (a) In General.--Clause (vi) of section 170(b)(1)(E) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) Contributions by Certain Corporate Farmers and Ranchers.--Clause 
(iii) of section 170(b)(2)(B) is amended by striking ``December 31, 
2009'' and inserting ``December 31, 2011''.
    (c) <<NOTE: 26 USC 170 note.>>  Effective Date.--The amendments made 
by this section shall apply to contributions made in taxable years 
beginning after December 31, 2009.
SEC. 724. ABOVE-THE-LINE DEDUCTION FOR QUALIFIED TUITION AND 
                        RELATED EXPENSES.

    (a) In General.--Subsection (e) of section 222 is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) <<NOTE: 26 USC 222 note.>>  Effective Date.--The amendment made 
by this section shall apply to taxable years beginning after December 
31, 2009.
SEC. 725. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT PLANS 
                        FOR CHARITABLE PURPOSES.

    (a) In General.--Subparagraph (F) of section 408(d)(8) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) <<NOTE: 26 USC 408 note.>>  Effective Date; Special Rule.--
            (1) Effective date.--The amendment made by this section 
        shall apply to distributions made in taxable years beginning 
        after December 31, 2009.
            (2) Special rule.--For purposes of subsections (a)(6), 
        (b)(3), and (d)(8) of section 408 of the Internal Revenue Code 
        of 1986, at the election of the taxpayer (at such time and in 
        such manner as prescribed by the Secretary of the Treasury) any 
        qualified charitable distribution made after December 31, 2010, 
        and before February 1, 2011, shall be deemed to have been made 
        on December 31, 2010.
SEC. 726. LOOK-THRU OF CERTAIN REGULATED INVESTMENT COMPANY STOCK 
                        IN DETERMINING GROSS ESTATE OF 
                        NONRESIDENTS.

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

[[Page 124 STAT. 3317]]

    (b) <<NOTE: 26 USC 2105 note.>>  Effective Date.--The amendment made 
by this section shall apply to estates of decedents dying after December 
31, 2009.
SEC. 727. PARITY FOR EXCLUSION FROM INCOME FOR EMPLOYER-PROVIDED 
                        MASS TRANSIT AND PARKING BENEFITS.

    (a) In General.--Paragraph (2) of section 132(f) <<NOTE: 26 USC 
132.>>  is amended by striking ``January 1, 2011'' and inserting 
``January 1, 2012''.

    (b) <<NOTE: 26 USC 132 note.>>  Effective Date.--The amendment made 
by this section shall apply to months after December 31, 2010.
SEC. 728. REFUNDS DISREGARDED IN THE ADMINISTRATION OF FEDERAL 
                        PROGRAMS AND FEDERALLY ASSISTED PROGRAMS.

    (a) In General.--Subchapter A of chapter 65 is amended by adding at 
the end the following new section:
``SEC. 6409. <<NOTE: 26 USC 6409.>>  REFUNDS DISREGARDED IN THE 
                          ADMINISTRATION OF FEDERAL PROGRAMS AND 
                          FEDERALLY ASSISTED PROGRAMS.

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

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

    (c) <<NOTE: 26 USC 6409 note.>>  Effective Date.--The amendments 
made by this section shall apply to amounts received after December 31, 
2009.

                     Subtitle C--Business Tax Relief

SEC. 731. RESEARCH CREDIT.

    (a) In General.--Subparagraph (B) of section 41(h)(1) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) Conforming Amendment.--Subparagraph (D) of section 45C(b)(1) is 
amended by striking ``December 31, 2009'' and inserting ``December 31, 
2011''.
    (c) <<NOTE: 26 USC 41 note.>>  Effective Date.--The amendments made 
by this section shall apply to amounts paid or incurred after December 
31, 2009.
SEC. 732. INDIAN EMPLOYMENT TAX CREDIT.

    (a) In General.--Subsection (f) of section 45A is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) <<NOTE: 26 USC 45A note.>>  Effective Date.--The amendment made 
by this section shall apply to taxable years beginning after December 
31, 2009.
SEC. 733. NEW MARKETS TAX CREDIT.

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

[[Page 124 STAT. 3318]]

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

    (b) Conforming Amendment.--Paragraph (3) of section <<NOTE: 26 USC 
45D.>>  45D(f) is amended by striking ``2014'' and inserting ``2016''.

    (c) <<NOTE: 26 USC 45D note.>>  Effective Date.--The amendments made 
by this section shall apply to calendar years beginning after 2009.
SEC. 734. RAILROAD TRACK MAINTENANCE CREDIT.

    (a) In General.--Subsection (f) of section 45G is amended by 
striking ``January 1, 2010'' and inserting ``January 1, 2012''.
    (b) <<NOTE: 26 USC 45G note.>>  Effective Date.--The amendment made 
by this section shall apply to expenditures paid or incurred in taxable 
years beginning after December 31, 2009.
SEC. 735. MINE RESCUE TEAM TRAINING CREDIT.

    (a) In General.--Subsection (e) of section 45N is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) <<NOTE: 26 USC 45N note.>>  Effective Date.--The amendment made 
by this section shall apply to taxable years beginning after December 
31, 2009.
SEC. 736. EMPLOYER WAGE CREDIT FOR EMPLOYEES WHO ARE ACTIVE DUTY 
                        MEMBERS OF THE UNIFORMED SERVICES.

    (a) In General.--Subsection (f) of section 45P is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) <<NOTE: 26 USC 45P note.>>  Effective Date.--The amendment made 
by this section shall apply to payments made after December 31, 2009.
SEC. 737. 15-YEAR STRAIGHT-LINE COST RECOVERY FOR QUALIFIED 
                        LEASEHOLD IMPROVEMENTS, QUALIFIED 
                        RESTAURANT BUILDINGS AND IMPROVEMENTS, AND 
                        QUALIFIED RETAIL IMPROVEMENTS.

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

    (c) <<NOTE: 26 USC 168 note.>>  Effective Date.--The amendments made 
by this section shall apply to property placed in service after December 
31, 2009.
SEC. 738. 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS ENTERTAINMENT 
                        COMPLEXES.

    (a) In General.--Subparagraph (D) of section 168(i)(15) is amended 
by striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) <<NOTE: 26 USC 168 note.>>  Effective Date.--The amendment made 
by this section shall apply to property placed in service after December 
31, 2009.

[[Page 124 STAT. 3319]]

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

    (a) In General.--Paragraph (8) of section 168(j) <<NOTE: 26 USC 
168.>>  is amended by striking ``December 31, 2009'' and inserting 
``December 31, 2011''.

    (b) <<NOTE: 26 USC 168 note.>>  Effective Date.--The amendment made 
by this section shall apply to property placed in service after December 
31, 2009.
SEC. 740. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF FOOD 
                        INVENTORY.

    (a) In General.--Clause (iv) of section 170(e)(3)(C) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) <<NOTE: 26 USC 170 note.>>  Effective Date.--The amendment made 
by this section shall apply to contributions made after December 31, 
2009.
SEC. 741. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF BOOK 
                        INVENTORIES TO PUBLIC SCHOOLS.

    (a) In General.--Clause (iv) of section 170(e)(3)(D) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) <<NOTE: 26 USC 170 note.>>  Effective Date.--The amendment made 
by this section shall apply to contributions made after December 31, 
2009.
SEC. 742. ENHANCED CHARITABLE DEDUCTION FOR CORPORATE 
                        CONTRIBUTIONS OF COMPUTER INVENTORY FOR 
                        EDUCATIONAL PURPOSES.

    (a) In General.--Subparagraph (G) of section 170(e)(6) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) <<NOTE: 26 USC 170 note.>>  Effective Date.--The amendment made 
by this section shall apply to contributions made in taxable years 
beginning after December 31, 2009.
SEC. 743. ELECTION TO EXPENSE MINE SAFETY EQUIPMENT.

    (a) In General.--Subsection (g) of section 179E is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) <<NOTE: 26 USC 179E note.>>  Effective Date.--The amendment made 
by this section shall apply to property placed in service after December 
31, 2009.
SEC. 744. SPECIAL EXPENSING RULES FOR CERTAIN FILM AND TELEVISION 
                        PRODUCTIONS.

    (a) In General.--Subsection (f) of section 181 is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) <<NOTE: 26 USC 181 note.>>  Effective Date.--The amendment made 
by this section shall apply to productions commencing after December 31, 
2009.
SEC. 745. EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.

    (a) In General.--Subsection (h) of section 198 is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) <<NOTE: 26 USC 198 note.>>  Effective Date.--The amendment made 
by this section shall apply to expenditures paid or incurred after 
December 31, 2009.
SEC. 746. DEDUCTION ALLOWABLE WITH RESPECT TO INCOME ATTRIBUTABLE 
                        TO DOMESTIC PRODUCTION ACTIVITIES IN 
                        PUERTO RICO.

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

[[Page 124 STAT. 3320]]

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

    (b) <<NOTE: 26 USC 199 note.>>  Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2009.
SEC. 747. MODIFICATION OF TAX TREATMENT OF CERTAIN PAYMENTS TO 
                        CONTROLLING EXEMPT ORGANIZATIONS.

    (a) In General.--Clause (iv) of section 512(b)(13)(E) <<NOTE: 26 USC 
512.>>  is amended by striking ``December 31, 2009'' and inserting 
``December 31, 2011''.

    (b) <<NOTE: 26 USC 512.>>  Effective Date.--The amendment made by 
this section shall apply to payments received or accrued after December 
31, 2009.
SEC. 748. TREATMENT OF CERTAIN DIVIDENDS OF REGULATED INVESTMENT 
                        COMPANIES.

    (a) In General.--Paragraphs (1)(C) and (2)(C) of section 871(k) are 
each amended by striking ``December 31, 2009'' and inserting ``December 
31, 2011''.
    (b) <<NOTE: 26 USC 871 note.>>  Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2009.
SEC. 749. RIC QUALIFIED INVESTMENT ENTITY TREATMENT UNDER FIRPTA.

    (a) In General.--Clause (ii) of section 897(h)(4)(A) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) <<NOTE: 26 USC 897 note.>>  Effective Date.--
            (1) In general.--The amendment made by subsection (a) shall 
        take effect on January 1, 2010. Notwithstanding the preceding 
        sentence, such amendment shall not apply with respect to the 
        withholding requirement under section 1445 of the Internal 
        Revenue Code of 1986 for any payment made before the date of the 
        enactment of this Act.
            (2) Amounts withheld on or before date of enactment.--In the 
        case of a regulated investment company--
                    (A) which makes a distribution after December 31, 
                2009, and before the date of the enactment of this Act; 
                and
                    (B) which would (but for the second sentence of 
                paragraph (1)) have been required to withhold with 
                respect to such distribution under section 1445 of such 
                Code,
        such investment company shall not be liable to any person to 
        whom such distribution was made for any amount so withheld and 
        paid over to the Secretary of the Treasury.
SEC. 750. EXCEPTIONS FOR ACTIVE FINANCING INCOME.

    (a) In General.--Sections 953(e)(10) and 954(h)(9) are each amended 
by striking ``January 1, 2010'' and inserting ``January 1, 2012''.
    (b) Conforming Amendment.--Section 953(e)(10) is amended by striking 
``December 31, 2009'' and inserting ``December 31, 2011''.
    (c) <<NOTE: 26 USC 953 note.>>  Effective Date.--The amendments made 
by this section shall apply to taxable years of foreign corporations 
beginning after December 31, 2009, and to taxable years of United States 
shareholders with or within which any such taxable year of such foreign 
corporation ends.

[[Page 124 STAT. 3321]]

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

    (a) In General.--Subparagraph (C) of section 954(c)(6) <<NOTE: 26 
USC 954.>>  is amended by striking ``January 1, 2010'' and inserting 
``January 1, 2012''.

    (b) <<NOTE: 26 USC 954 note.>>  Effective Date.--The amendment made 
by this section shall apply to taxable years of foreign corporations 
beginning after December 31, 2009, and to taxable years of United States 
shareholders with or within which any such taxable year of such foreign 
corporation ends.
SEC. 752. BASIS ADJUSTMENT TO STOCK OF S CORPS MAKING CHARITABLE 
                        CONTRIBUTIONS OF PROPERTY.

    (a) In General.--Paragraph (2) of section 1367(a) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) <<NOTE: 26 USC 1367 note.>>  Effective Date.--The amendment made 
by this section shall apply to contributions made in taxable years 
beginning after December 31, 2009.
SEC. 753. EMPOWERMENT ZONE TAX INCENTIVES.

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

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

    (c) <<NOTE: 26 USC 1391 note.>>  Treatment of Certain Termination 
Dates Specified in Nominations.--In the case of a designation of an 
empowerment zone the nomination for which included a termination date 
which is contemporaneous with the date specified in subparagraph (A)(i) 
of section 1391(d)(1) of the Internal Revenue Code of 1986 (as in effect 
before the enactment of this Act), subparagraph (B) of such section 
shall not apply with respect to such designation if, after the date of 
the enactment of this section, the entity which made such nomination 
amends the nomination to provide for a new termination date in such 
manner as the Secretary of the Treasury (or the Secretary's designee) 
may provide.

    (d) <<NOTE: 26 USC 1202 note.>>  Effective Date.--The amendments 
made by this section shall apply to periods after December 31, 2009.
SEC. 754. TAX INCENTIVES FOR INVESTMENT IN THE DISTRICT OF 
                        COLUMBIA.

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

[[Page 124 STAT. 3322]]

                    (A) In general.--Paragraph (2) of section <<NOTE: 26 
                USC 1400B.>> 1400B(e) is amended--
                          (i) by striking ``December 31, 2014'' and 
                      inserting ``December 31, 2016''; and
                          (ii) by striking ``2014'' in the heading and 
                      inserting ``2016''.
                    (B) Partnerships and s-corps.--Paragraph (2) of 
                section 1400B(g) is amended by striking ``December 31, 
                2014'' and inserting ``December 31, 2016''.

    (d) First-time Homebuyer Credit.--Subsection (i) of section 1400C is 
amended by striking ``January 1, 2010'' and inserting ``January 1, 
2012''.
    (e) <<NOTE: Applicability. 26 USC 1400m.>>  Effective Dates.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        periods after December 31, 2009.
            (2) Tax-exempt dc empowerment zone bonds.--The amendment 
        made by subsection (b) shall apply to bonds issued after 
        December 31, 2009.
            (3) Acquisition dates for zero-percent capital gains rate.--
        The amendments made by subsection (c) shall apply to property 
        acquired or substantially improved after December 31, 2009.
            (4) Homebuyer credit.--The amendment made by subsection (d) 
        shall apply to homes purchased after December 31, 2009.
SEC. 755. TEMPORARY INCREASE IN LIMIT ON COVER OVER OF RUM EXCISE 
                        TAXES TO PUERTO RICO AND THE VIRGIN 
                        ISLANDS.

    (a) In General.--Paragraph (1) of section 7652(f) is amended by 
striking ``January 1, 2010'' and inserting ``January 1, 2012''.
    (b) <<NOTE: 26 USC 7652 note.>>  Effective Date.--The amendment made 
by this section shall apply to distilled spirits brought into the United 
States after December 31, 2009.
SEC. 756. AMERICAN SAMOA ECONOMIC DEVELOPMENT CREDIT.

    (a) In General.--Subsection (d) of section 119 of division A of the 
Tax Relief and Health Care Act of 2006 <<NOTE: 26 USC 30A.>>  is 
amended--
            (1) by striking ``first 4 taxable years'' and inserting 
        ``first 6 taxable years'', and
            (2) by striking ``January 1, 2010'' and inserting ``January 
        1, 2012''.

    (b) <<NOTE: 26 USC 30A.>>  Effective Date.--The amendments made by 
this section shall apply to taxable years beginning after December 31, 
2009.
SEC. 757. WORK OPPORTUNITY CREDIT.

    (a) In General.--Subparagraph (B) of section 51(c)(4) is amended by 
striking ``August 31, 2011'' and inserting ``December 31, 2011''.
    (b) <<NOTE: 26 USC 51 note.>>  Effective Date.--The amendment made 
by this section shall apply to individuals who begin work for the 
employer after the date of the enactment of this Act.
SEC. 758. QUALIFIED ZONE ACADEMY BONDS.

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

[[Page 124 STAT. 3323]]

    (b) Repeal of Refundable Credit for QZABs.--Paragraph (3) of section 
6431(f) <<NOTE: 26 USC 6431.>>  is amended by inserting ``determined 
without regard to any allocation relating to the national zone academy 
bond limitation for 2011 or any carryforward of such allocation'' after 
``54E)'' in subparagraph (A)(iii).

    (c) <<NOTE: 26 USC 54E.>>  Effective Date.--The amendments made by 
this section shall apply to obligations issued after December 31, 2010.
SEC. 759. MORTGAGE INSURANCE PREMIUMS.

    (a) In General.--Clause (iv) of section 163(h)(3)(E) is amended by 
striking ``December 31, 2010'' and inserting ``December 31, 2011''.
    (b) <<NOTE: 26 USC 163 note.>>  Effective Date.--The amendment made 
by this section shall apply to amounts paid or accrued after December 
31, 2010.
SEC. 760. TEMPORARY EXCLUSION OF 100 PERCENT OF GAIN ON CERTAIN 
                        SMALL BUSINESS STOCK.

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

    (b) <<NOTE: 26 USC 1202 note.>>  Effective Date.--The amendments 
made by this section shall apply to stock acquired after December 31, 
2010.

            Subtitle D--Temporary Disaster Relief Provisions

                                  PART

                    Subpart A--New York Liberty Zone

SEC. 761. TAX-EXEMPT BOND FINANCING.

    (a) In General.--Subparagraph (D) of section 1400L(d)(2) is amended 
by striking ``January 1, 2010'' and inserting ``January 1, 2012''.
    (b) <<NOTE: 26 USC 1400L note.>>  Effective Date.--The amendment 
made by this section shall apply to bonds issued after December 31, 
2009.

                           Subpart B--GO Zone

SEC. 762. INCREASE IN REHABILITATION CREDIT.

    (a) In General.--Subsection (h) of section 1400N is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) <<NOTE: 26 USC 1400N note.>>  Effective Date.--The amendment 
made by this section shall apply to amounts paid or incurred after 
December 31, 2009.
SEC. 763. LOW-INCOME HOUSING CREDIT RULES FOR BUILDINGS IN GO 
                        ZONES.

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

[[Page 124 STAT. 3324]]

SEC. 764. TAX-EXEMPT BOND FINANCING.

    (a) In General.--Paragraphs (2)(D) and (7)(C) of section 
1400N(a) <<NOTE: 26 USC 1400N.>>  are each amended by striking ``January 
1, 2011'' and inserting ``January 1, 2012''.

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

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

    (b) <<NOTE: 26 USC 1400N.>>  Effective Date.--The amendment made by 
this section shall apply to property placed in service after December 
31, 2009.

                    TITLE VIII--BUDGETARY PROVISIONS

SEC. 801. DETERMINATION OF BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying with 
the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, jointly submitted for printing in the 
Congressional Record by the Chairmen of the House and Senate Budget 
Committees, provided that such statement has been submitted prior to the 
vote on passage in the House acting first on this conference report or 
amendment between the Houses.
SEC. 802. EMERGENCY DESIGNATIONS.

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

[[Page 124 STAT. 3325]]

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

    Approved December 17, 2010.

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

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

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