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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1586 Engrossed Amendment Senate (EAS)]

                  In the Senate of the United States,

                                                        August 5, 2010.
    Resolved, That the bill from the House of Representatives (H.R. 
1586) entitled ``An Act to modernize the air traffic control system, 
improve the safety, reliability, and availability of transportation by 
air in the United States, provide for modernization of the air traffic 
control system, reauthorize the Federal Aviation Administration, and 
for other purposes.'', do pass with the following

        SENATE AMENDMENT TO HOUSE AMENDMENT TO SENATE AMENDMENT:

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

                              short title

    Section 1. This Act may be cited as the ``______Act of____''.

                                TITLE I

                          EDUCATION JOBS FUND

                          education jobs funds

    Sec. 101. There are authorized to be appropriated and there are 
appropriated out of any money in the Treasury not otherwise obligated 
for necessary expenses for an Education Jobs Fund, $10,000,000,000: 
Provided, That the amount under this heading shall be administered 
under the terms and conditions of sections 14001 through 14013 and 
title XV of division A of the American Recovery and Reinvestment Act of 
2009 (Public Law 111-5) except as follows:
            (1) Allocation of funds.--
                    (A) Funds appropriated under this heading shall be 
                available only for allocation by the Secretary of 
                Education (in this heading referred to as the 
                Secretary) in accordance with subsections (a), (b), 
                (d), (e), and (f) of section 14001 of division A of 
                Public Law 111-5 and subparagraph (B) of this 
                paragraph, except that the amount reserved under such 
                subsection (b) shall not exceed $1,000,000 and such 
                subsection (f) shall be applied by substituting one 
                year for two years.
                    (B) Prior to allocating funds to States under 
                section 14001(d) of division A of Public Law 111-5, the 
                Secretary shall allocate 0.5 percent to the Secretary 
                of the Interior for schools operated or funded by the 
                Bureau of Indian Affairs on the basis of the schools' 
                respective needs for activities consistent with this 
                heading under such terms and conditions as the 
                Secretary of the Interior may determine.
            (2) Reservation.--A State that receives an allocation of 
        funds appropriated under this heading may reserve not more than 
        2 percent for the administrative costs of carrying out its 
        responsibilities with respect to those funds.
            (3) Awards to local educational agencies.--
                    (A) Except as specified in paragraph (2), an 
                allocation of funds to a State shall be used only for 
                awards to local educational agencies for the support of 
                elementary and secondary education in accordance with 
                paragraph (5) for the 2010-2011 school year (or, in the 
                case of reallocations made under section 14001(f) of 
                division A of Public Law 111-5, for the 2010-2011 or 
                the 2011-2012 school year).
                    (B) Funds used to support elementary and secondary 
                education shall be distributed through a State's 
                primary elementary and secondary funding formulae or 
                based on local educational agencies' relative shares of 
                funds under part A of title I of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 6311 et 
                seq.) for the most recent fiscal year for which data 
                are available.
                    (C) Subsections (a) and (b) of section 14002 of 
                division A of Public Law 111-5 shall not apply to funds 
                appropriated under this heading.
            (4) Compliance with education reform assurances.--For 
        purposes of awarding funds appropriated under this heading, any 
        State that has an approved application for Phase II of the 
        State Fiscal Stabilization Fund that was submitted in 
        accordance with the application notice published in the Federal 
        Register on November 17, 2009 (74 Fed. Reg. 59142) shall be 
        deemed to be in compliance with subsection (b) and paragraphs 
        (2) through (5) of subsection (d) of section 14005 of division 
        A of Public Law 111-5.
            (5) Requirement to use funds to retain or create education 
        jobs.--Notwithstanding section 14003(a) of division A of Public 
        Law 111-5, funds awarded to local educational agencies under 
        paragraph (3)--
                    (A) may be used only for compensation and benefits 
                and other expenses, such as support services, necessary 
                to retain existing employees, to recall or rehire 
                former employees, and to hire new employees, in order 
                to provide early childhood, elementary, or secondary 
                educational and related services; and
                    (B) may not be used for general administrative 
                expenses or for other support services expenditures as 
                those terms were defined by the National Center for 
                Education Statistics in its Common Core of Data as of 
                the date of enactment of this Act.
            (6) Prohibition on use of funds for rainy-day funds or debt 
        retirement.--A State that receives an allocation may not use 
        such funds, directly or indirectly, to--
                    (A) establish, restore, or supplement a rainy-day 
                fund;
                    (B) supplant State funds in a manner that has the 
                effect of establishing, restoring, or supplementing a 
                rainy-day fund;
                    (C) reduce or retire debt obligations incurred by 
                the State; or
                    (D) supplant State funds in a manner that has the 
                effect of reducing or retiring debt obligations 
                incurred by the State.
            (7) Deadline for award.--The Secretary shall award funds 
        appropriated under this heading not later than 45 days after 
        the date of the enactment of this Act to States that have 
        submitted applications meeting the requirements applicable to 
        funds under this heading. The Secretary shall not require 
        information in applications beyond what is necessary to 
        determine compliance with applicable provisions of law.
            (8) Alternate distribution of funds.--If, within 30 days 
        after the date of the enactment of this Act, a Governor has not 
        submitted an approvable application, the Secretary shall 
        provide for funds allocated to that State to be distributed to 
        another entity or other entities in the State (notwithstanding 
        section 14001(e) of division A of Public Law 111-5) for support 
        of elementary and secondary education, under such terms and 
        conditions as the Secretary may establish, provided that all 
        terms and conditions that apply to funds appropriated under 
        this heading shall apply to such funds distributed to such 
        entity or entities. No distribution shall be made to a State 
        under this paragraph, however, unless the Secretary has 
        determined (on the basis of such information as may be 
        available) that the requirements of clauses (i), (ii), or (iii) 
        of paragraph 10(A) are likely to be met, notwithstanding the 
        lack of an application from the Governor of that State.
            (9) Local educational agency application.--Section 442 of 
        the General Education Provisions Act shall not apply to a local 
        educational agency that has previously submitted an application 
        to the State under title XIV of division A of Public Law 111-5. 
        The assurances provided under that application shall continue 
        to apply to funds awarded under this heading.
            (10) Maintenance of effort.--
                    (A) Except as provided in paragraph (8), the 
                Secretary shall not allocate funds to a State under 
                paragraph (1) unless the Governor of the State provides 
                an assurance to the Secretary that--
                            (i) for State fiscal year 2011, the State 
                        will maintain State support for elementary and 
                        secondary education (in the aggregate or on the 
                        basis of expenditures per pupil) and for public 
                        institutions of higher education (not including 
                        support for capital projects or for research 
                        and development or tuition and fees paid by 
                        students) at not less than the level of such 
                        support for each of the two categories, 
                        respectively, for State fiscal year 2009;
                            (ii) for State fiscal year 2011, the State 
                        will maintain State support for elementary and 
                        secondary education and for public institutions 
                        of higher education (not including support for 
                        capital projects or for research and 
                        development or tuition and fees paid by 
                        students) at a percentage of the total revenues 
                        available to the State that is equal to or 
                        greater than the percentage provided for each 
                        of the two categories, respectively, for State 
                        fiscal year 2010; or
                            (iii) in the case of a State in which State 
                        tax collections for calendar year 2009 were 
                        less than State tax collections for calendar 
                        year 2006, for State fiscal year 2011 the State 
                        will maintain State support for elementary and 
                        secondary education (in the aggregate) and for 
                        public institutions of higher education (not 
                        including support for capital projects or for 
                        research and development or tuition and fees 
                        paid by students)--
                                    (I) at not less than the level of 
                                such support for each of the two 
                                categories, respectively, for State 
                                fiscal year 2006; or
                                    (II) at a percentage of the total 
                                revenues available to the State that is 
                                equal to or greater than the percentage 
                                provided for each of the two 
                                categories, respectively, for State 
                                fiscal year 2006.
                    (B) Section 14005(d)(1) and subsections (a) through 
                (c) of section 14012 of division A of Public Law 111-5 
                shall not apply to funds appropriated under this 
                heading.
            (11) Additional requirements for the state of texas.--The 
        following requirements shall apply to the State of Texas:
                    (A) Notwithstanding paragraph (3)(B), funds used to 
                support elementary and secondary education shall be 
                distributed based on local educational agencies' 
                relative shares of funds under part A of title I of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6311 et seq.) for the most recent fiscal year 
                which data are available. Funds distributed pursuant to 
                this paragraph shall be used to supplement and not 
                supplant State formula funding that is distributed on a 
                similar basis to part A of title I of the Elementary 
                and Secondary Education Act of 1965 (20 U.S.C. 6311 et 
                seq.).
                    (B) The Secretary shall not allocate funds to the 
                State of Texas under paragraph (1) unless the Governor 
                of the State provides an assurance to the Secretary 
                that the State will for fiscal years 2011, 2012, and 
                2013 maintain State support for elementary and 
                secondary education at a percentage of the total 
                revenues available to the State that is equal to or 
                greater than the percentage provided for such purpose 
                for fiscal year 2011 prior to the enactment of this 
                Act.
                    (C) Notwithstanding paragraph (8), no distribution 
                shall be made to the State of Texas or local education 
                agencies therein unless the Governor of Texas makes an 
                assurance to the Secretary that the requirements in 
                paragraphs (11)(A) and (11)(B) will be met, 
                notwithstanding the lack of an application from the 
                Governor of Texas.

                                TITLE II

       STATE FISCAL RELIEF AND OTHER PROVISIONS; REVENUE OFFSETS

          Subtitle A--State Fiscal Relief and Other Provisions

                   extension of arra increase in fmap

    Sec. 201. Section 5001 of the American Recovery and Reinvestment 
Act of 2009 (Public Law 111-5) is amended--
            (1) in subsection (a)(3), by striking ``first calendar 
        quarter'' and inserting ``first 3 calendar quarters'';
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``paragraph (2)'' 
                and inserting ``paragraphs (2) and (3)''; and
                    (B) by adding at the end the following:
            ``(3) Phase-down of general increase.--
                    ``(A) Second quarter of fiscal year 2011.--For each 
                State, for the second quarter of fiscal year 2011, the 
                FMAP percentage increase for the State under paragraph 
                (1) or (2) (as applicable) shall be 3.2 percentage 
                points.
                    ``(B) Third quarter of fiscal year 2011.--For each 
                State, for the third quarter of fiscal year 2011, the 
                FMAP percentage increase for the State under paragraph 
                (1) or (2) (as applicable) shall be 1.2 percentage 
                points.'';
            (3) in subsection (c)--
                    (A) in paragraph (2)(B), by striking ``July 1, 
                2010'' and inserting ``January 1, 2011'';
                    (B) in paragraph (3)(B)(i), by striking ``July 1, 
                2010'' and inserting ``January 1, 2011'' each place it 
                appears; and
                    (C) in paragraph (4)(C)(ii), by striking ``the 3-
                consecutive-month period beginning with January 2010'' 
                and inserting ``any 3-consecutive-month period that 
                begins after December 2009 and ends before January 
                2011'';
            (4) in subsection (e), by adding at the end the following:
``Notwithstanding paragraph (5), effective for payments made on or 
after January 1, 2010, the increases in the FMAP for a State under this 
section shall apply to payments under title XIX of such Act that are 
attributable to expenditures for medical assistance provided to 
nonpregnant childless adults made eligible under a State plan under 
such title (including under any waiver under such title or under 
section 1115 of such Act (42 U.S.C. 1315)) who would have been eligible 
for child health assistance or other health benefits under eligibility 
standards in effect as of December 31, 2009, of a waiver of the State 
child health plan under the title XXI of such Act.'';
            (5) in subsection (g)--
                    (A) in paragraph (1), by striking ``September 30, 
                2011'' and inserting ``March 31, 2012'';
                    (B) in paragraph (2), by inserting ``of such Act'' 
                after ``1923''; and
                    (C) by adding at the end the following:
            ``(3) Certification by chief executive officer.--No 
        additional Federal funds shall be paid to a State as a result 
        of this section with respect to a calendar quarter occurring 
        during the period beginning on January 1, 2011, and ending on 
        June 30, 2011, unless, not later than 45 days after the date of 
        enactment of this paragraph, the chief executive officer of the 
        State certifies that the State will request and use such 
        additional Federal funds.''; and
            (6) in subsection (h)(3), by striking ``December 31, 2010'' 
        and inserting ``June 30, 2011''.

       treatment of certain drugs for computation of medicaid amp

    Sec. 202. Effective as if included in the enactment of Public Law 
111-148, section 1927(k)(1)(B)(i)(IV) of the Social Security Act (42 
U.S.C. 1396r-8(k)(1)(B)(i)(IV)), as amended by section 2503(a)(2)(B) of 
Public Law 111-148 and section 1101(c)(2) of Public Law 111-152, is 
amended by adding at the end the following: ``, unless the drug is an 
inhalation, infusion, instilled, implanted, or injectable drug that is 
not generally dispensed through a retail community pharmacy; and''.

    sunset of temporary increase in benefits under the supplemental 
                      nutrition assistance program

    Sec. 203. Section 101(a) of title I of division A of Public Law 
111-5 (123 Stat. 120), as amended by section 4262 of this Act, is 
amended by striking paragraph (2) and inserting the following:
            ``(2) Termination.--The authority provided by this 
        subsection shall terminate after March 31, 2014.''.

                      Subtitle B--Revenue Offsets

rules to prevent splitting foreign tax credits from the income to which 
                              they relate

    Sec. 211.  (a) In General.--Subpart A of part III of subchapter N 
of chapter 1 of the Internal Revenue Code of 1986 is amended by adding 
at the end the following new section:

``SEC. 909. SUSPENSION OF TAXES AND CREDITS UNTIL RELATED INCOME TAKEN 
              INTO ACCOUNT.

    ``(a) In General.--If there is a foreign tax credit splitting event 
with respect to a foreign income tax paid or accrued by the taxpayer, 
such tax shall not be taken into account for purposes of this title 
before the taxable year in which the related income is taken into 
account under this chapter by the taxpayer.
    ``(b) Special Rules With Respect to Section 902 Corporations.--If 
there is a foreign tax credit splitting event with respect to a foreign 
income tax paid or accrued by a section 902 corporation, such tax shall 
not be taken into account--
            ``(1) for purposes of section 902 or 960, or
            ``(2) for purposes of determining earnings and profits 
        under section 964(a),
before the taxable year in which the related income is taken into 
account under this chapter by such section 902 corporation or a 
domestic corporation which meets the ownership requirements of 
subsection (a) or (b) of section 902 with respect to such section 902 
corporation.
    ``(c) Special Rules.--For purposes of this section--
            ``(1) Application to partnerships, etc.--In the case of a 
        partnership, subsections (a) and (b) shall be applied at the 
        partner level. Except as otherwise provided by the Secretary, a 
        rule similar to the rule of the preceding sentence shall apply 
        in the case of any S corporation or trust.
            ``(2) Treatment of foreign taxes after suspension.--In the 
        case of any foreign income tax not taken into account by reason 
        of subsection (a) or (b), except as otherwise provided by the 
        Secretary, such tax shall be so taken into account in the 
        taxable year referred to in such subsection (other than for 
        purposes of section 986(a)) as a foreign income tax paid or 
        accrued in such taxable year.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Foreign tax credit splitting event.--There is a 
        foreign tax credit splitting event with respect to a foreign 
        income tax if the related income is (or will be) taken into 
        account under this chapter by a covered person.
            ``(2) Foreign income tax.--The term `foreign income tax' 
        means any income, war profits, or excess profits tax paid or 
        accrued to any foreign country or to any possession of the 
        United States.
            ``(3) Related income.--The term `related income' means, 
        with respect to any portion of any foreign income tax, the 
        income (or, as appropriate, earnings and profits) to which such 
        portion of foreign income tax relates.
            ``(4) Covered person.--The term `covered person' means, 
        with respect to any person who pays or accrues a foreign income 
        tax (hereafter in this paragraph referred to as the `payor')--
                    ``(A) any entity in which the payor holds, directly 
                or indirectly, at least a 10 percent ownership interest 
                (determined by vote or value),
                    ``(B) any person which holds, directly or 
                indirectly, at least a 10 percent ownership interest 
                (determined by vote or value) in the payor,
                    ``(C) any person which bears a relationship to the 
                payor described in section 267(b) or 707(b), and
                    ``(D) any other person specified by the Secretary 
                for purposes of this paragraph.
            ``(5) Section 902 corporation.--The term `section 902 
        corporation' means any foreign corporation with respect to 
        which one or more domestic corporations meets the ownership 
        requirements of subsection (a) or (b) of section 902.
    ``(e) Regulations.--The Secretary may issue such regulations or 
other guidance as is necessary or appropriate to carry out the purposes 
of this section, including regulations or other guidance which 
provides--
            ``(1) appropriate exceptions from the provisions of this 
        section, and
            ``(2) for the proper application of this section with 
        respect to hybrid instruments.''.
    (b) Clerical Amendment.--The table of sections for subpart A of 
part III of subchapter N of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new item:

``Sec. 909. Suspension of taxes and credits until related income taken 
                            into account.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to--
            (1) foreign income taxes (as defined in section 909(d) of 
        the Internal Revenue Code of 1986, as added by this section) 
        paid or accrued in taxable years beginning after December 31, 
        2010; and
            (2) foreign income taxes (as so defined) paid or accrued by 
        a section 902 corporation (as so defined) in taxable years 
        beginning on or before such date (and not deemed paid under 
        section 902(a) or 960 of such Code on or before such date), but 
        only for purposes of applying sections 902 and 960 with respect 
        to periods after such date.
Section 909(b)(2) of the Internal Revenue Code of 1986, as added by 
this section, shall not apply to foreign income taxes described in 
paragraph (2).

denial of foreign tax credit with respect to foreign income not subject 
   to united states taxation by reason of covered asset acquisitions

    Sec. 212.  (a) In General.--Section 901 of the Internal Revenue 
Code of 1986 is amended by redesignating subsection (m) as subsection 
(n) and by inserting after subsection (l) the following new subsection:
    ``(m) Denial of Foreign Tax Credit With Respect to Foreign Income 
Not Subject to United States Taxation by Reason of Covered Asset 
Acquisitions.--
            ``(1) In general.--In the case of a covered asset 
        acquisition, the disqualified portion of any foreign income tax 
        determined with respect to the income or gain attributable to 
        the relevant foreign assets--
                    ``(A) shall not be taken into account in 
                determining the credit allowed under subsection (a), 
                and
                    ``(B) in the case of a foreign income tax paid by a 
                section 902 corporation (as defined in section 
                909(d)(5)), shall not be taken into account for 
                purposes of section 902 or 960.
            ``(2) Covered asset acquisition.--For purposes of this 
        section, the term `covered asset acquisition' means--
                    ``(A) a qualified stock purchase (as defined in 
                section 338(d)(3)) to which section 338(a) applies,
                    ``(B) any transaction which--
                            ``(i) is treated as an acquisition of 
                        assets for purposes of this chapter, and
                            ``(ii) is treated as the acquisition of 
                        stock of a corporation (or is disregarded) for 
                        purposes of the foreign income taxes of the 
                        relevant jurisdiction,
                    ``(C) any acquisition of an interest in a 
                partnership which has an election in effect under 
                section 754, and
                    ``(D) to the extent provided by the Secretary, any 
                other similar transaction.
            ``(3) Disqualified portion.--For purposes of this section--
                    ``(A) In general.--The term `disqualified portion' 
                means, with respect to any covered asset acquisition, 
                for any taxable year, the ratio (expressed as a 
                percentage) of--
                            ``(i) the aggregate basis differences (but 
                        not below zero) allocable to such taxable year 
                        under subparagraph (B) with respect to all 
                        relevant foreign assets, divided by
                            ``(ii) the income on which the foreign 
                        income tax referred to in paragraph (1) is 
                        determined (or, if the taxpayer fails to 
                        substantiate such income to the satisfaction of 
                        the Secretary, such income shall be determined 
                        by dividing the amount of such foreign income 
                        tax by the highest marginal tax rate applicable 
                        to such income in the relevant jurisdiction).
                    ``(B) Allocation of basis difference.--For purposes 
                of subparagraph (A)(i)--
                            ``(i) In general.--The basis difference 
                        with respect to any relevant foreign asset 
                        shall be allocated to taxable years using the 
                        applicable cost recovery method under this 
                        chapter.
                            ``(ii) Special rule for disposition of 
                        assets.--Except as otherwise provided by the 
                        Secretary, in the case of the disposition of 
                        any relevant foreign asset--
                                    ``(I) the basis difference 
                                allocated to the taxable year which 
                                includes the date of such disposition 
                                shall be the excess of the basis 
                                difference with respect to such asset 
                                over the aggregate basis difference 
                                with respect to such asset which has 
                                been allocated under clause (i) to all 
                                prior taxable years, and
                                    ``(II) no basis difference with 
                                respect to such asset shall be 
                                allocated under clause (i) to any 
                                taxable year thereafter.
                    ``(C) Basis difference.--
                            ``(i) In general.--The term `basis 
                        difference' means, with respect to any relevant 
                        foreign asset, the excess of--
                                    ``(I) the adjusted basis of such 
                                asset immediately after the covered 
                                asset acquisition, over
                                    ``(II) the adjusted basis of such 
                                asset immediately before the covered 
                                asset acquisition.
                            ``(ii) Built-in loss assets.--In the case 
                        of a relevant foreign asset with respect to 
                        which the amount described in clause (i)(II) 
                        exceeds the amount described in clause (i)(I), 
                        such excess shall be taken into account under 
                        this subsection as a basis difference of a 
                        negative amount.
                            ``(iii) Special rule for section 338 
                        elections.--In the case of a covered asset 
                        acquisition described in paragraph (2)(A), the 
                        covered asset acquisition shall be treated for 
                        purposes of this subparagraph as occurring at 
                        the close of the acquisition date (as defined 
                        in section 338(h)(2)).
            ``(4) Relevant foreign assets.--For purposes of this 
        section, the term `relevant foreign asset' means, with respect 
        to any covered asset acquisition, any asset (including any 
        goodwill, going concern value, or other intangible) with 
        respect to such acquisition if income, deduction, gain, or loss 
        attributable to such asset is taken into account in determining 
        the foreign income tax referred to in paragraph (1).
            ``(5) Foreign income tax.--For purposes of this section, 
        the term `foreign income tax' means any income, war profits, or 
        excess profits tax paid or accrued to any foreign country or to 
        any possession of the United States.
            ``(6) Taxes allowed as a deduction, etc.--Sections 275 and 
        78 shall not apply to any tax which is not allowable as a 
        credit under subsection (a) by reason of this subsection.
            ``(7) Regulations.--The Secretary may issue such 
        regulations or other guidance as is necessary or appropriate to 
        carry out the purposes of this subsection, including to exempt 
        from the application of this subsection certain covered asset 
        acquisitions, and relevant foreign assets with respect to which 
        the basis difference is de minimis.''.
    (b) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to covered asset 
        acquisitions (as defined in section 901(m)(2) of the Internal 
        Revenue Code of 1986, as added by this section) after December 
        31, 2010.
            (2) Transition rule.--The amendments made by this section 
        shall not apply to any covered asset acquisition (as so 
        defined) with respect to which the transferor and the 
        transferee are not related if such acquisition is--
                    (A) made pursuant to a written agreement which was 
                binding on January 1, 2011, and at all times 
                thereafter,
                    (B) described in a ruling request submitted to the 
                Internal Revenue Service on or before July 29, 2010, or
                    (C) described on or before January 1, 2011, in a 
                public announcement or in a filing with the Securities 
                and Exchange Commission.
            (3) Related persons.--For purposes of this subsection, a 
        person shall be treated as related to another person if the 
        relationship between such persons is described in section 267 
        or 707(b) of the Internal Revenue Code of 1986.

 separate application of foreign tax credit limitation, etc., to items 
                        resourced under treaties

    Sec. 213.  (a) In General.--Subsection (d) of section 904 of the 
Internal Revenue Code of 1986 is amended by redesignating paragraph (6) 
as paragraph (7) and by inserting after paragraph (5) the following new 
paragraph:
            ``(6) Separate application to items resourced under 
        treaties.--
                    ``(A) In general.--If--
                            ``(i) without regard to any treaty 
                        obligation of the United States, any item of 
                        income would be treated as derived from sources 
                        within the United States,
                            ``(ii) under a treaty obligation of the 
                        United States, such item would be treated as 
                        arising from sources outside the United States, 
                        and
                            ``(iii) the taxpayer chooses the benefits 
                        of such treaty obligation,
                subsections (a), (b), and (c) of this section and 
                sections 902, 907, and 960 shall be applied separately 
                with respect to each such item.
                    ``(B) Coordination with other provisions.--This 
                paragraph shall not apply to any item of income to 
                which subsection (h)(10) or section 865(h) applies.
                    ``(C) Regulations.--The Secretary may issue such 
                regulations or other guidance as is necessary or 
                appropriate to carry out the purposes of this 
                paragraph, including regulations or other guidance 
                which provides that related items of income may be 
                aggregated for purposes of this paragraph.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

 limitation on the amount of foreign taxes deemed paid with respect to 
                         section 956 inclusions

    Sec. 214.  (a) In General.--Section 960 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new 
subsection:
    ``(c) Limitation With Respect to Section 956 Inclusions.--
            ``(1) In general.--If there is included under section 
        951(a)(1)(B) in the gross income of a domestic corporation any 
        amount attributable to the earnings and profits of a foreign 
        corporation which is a member of a qualified group (as defined 
        in section 902(b)) with respect to the domestic corporation, 
        the amount of any foreign income taxes deemed to have been paid 
        during the taxable year by such domestic corporation under 
        section 902 by reason of subsection (a) with respect to such 
        inclusion in gross income shall not exceed the amount of the 
        foreign income taxes which would have been deemed to have been 
        paid during the taxable year by such domestic corporation if 
        cash in an amount equal to the amount of such inclusion in 
        gross income were distributed as a series of distributions 
        (determined without regard to any foreign taxes which would be 
        imposed on an actual distribution) through the chain of 
        ownership which begins with such foreign corporation and ends 
        with such domestic corporation.
            ``(2) Authority to prevent abuse.--The Secretary shall 
        issue such regulations or other guidance as is necessary or 
        appropriate to carry out the purposes of this subsection, 
        including regulations or other guidance which prevent the 
        inappropriate use of the foreign corporation's foreign income 
        taxes not deemed paid by reason of paragraph (1).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to acquisitions of United States property (as defined in section 956(c) 
of the Internal Revenue Code of 1986) after December 31, 2010.

      special rule with respect to certain redemptions by foreign 
                              subsidiaries

    Sec. 215.  (a) In General.--Paragraph (5) of section 304(b) of the 
Internal Revenue Code of 1986 is amended by redesignating subparagraph 
(B) as subparagraph (C) and by inserting after subparagraph (A) the 
following new subparagraph:
                    ``(B) Special rule in case of foreign acquiring 
                corporation.--In the case of any acquisition to which 
                subsection (a) applies in which the acquiring 
                corporation is a foreign corporation, no earnings and 
                profits shall be taken into account under paragraph 
                (2)(A) (and subparagraph (A) shall not apply) if more 
                than 50 percent of the dividends arising from such 
                acquisition (determined without regard to this 
                subparagraph) would neither--
                            ``(i) be subject to tax under this chapter 
                        for the taxable year in which the dividends 
                        arise, nor
                            ``(ii) be includible in the earnings and 
                        profits of a controlled foreign corporation (as 
                        defined in section 957 and without regard to 
                        section 953(c)).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to acquisitions after the date of the enactment of this Act.

  modification of affiliation rules for purposes of rules allocating 
                            interest expense

    Sec. 216.  (a) In General.--Subparagraph (A) of section 864(e)(5) 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following: ``Notwithstanding the preceding sentence, a foreign 
corporation shall be treated as a member of the affiliated group if--
                            ``(i) more than 50 percent of the gross 
                        income of such foreign corporation for the 
                        taxable year is effectively connected with the 
                        conduct of a trade or business within the 
                        United States, and
                            ``(ii) at least 80 percent of either the 
                        vote or value of all outstanding stock of such 
                        foreign corporation is owned directly or 
                        indirectly by members of the affiliated group 
                        (determined with regard to this sentence).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

 termination of special rules for interest and dividends received from 
      persons meeting the 80-percent foreign business requirements

    Sec. 217.  (a) In General.--Paragraph (1) of section 861(a) of the 
Internal Revenue Code of 1986 is amended by striking subparagraph (A) 
and by redesignating subparagraphs (B) and (C) as subparagraphs (A) and 
(B), respectively.
    (b) Grandfather Rule With Respect To Withholding on Interest and 
Dividends Received From Persons Meeting the 80-percent Foreign Business 
Requirements.--
            (1) In general.--Subparagraph (B) of section 871(i)(2) of 
        the Internal Revenue Code of 1986 is amended to read as 
        follows:
                    ``(B) The active foreign business percentage of--
                            ``(i) any dividend paid by an existing 80/
                        20 company, and
                            ``(ii) any interest paid by an existing 80/
                        20 company.''.
            (2) Definitions and special rules.--Section 871 of such 
        Code is amended by redesignating subsections (l) and (m) as 
        subsections (m) and (n), respectively, and by inserting after 
        subsection (k) the following new subsection:
    ``(l) Rules Relating to Existing 80/20 Companies.--For purposes of 
this subsection and subsection (i)(2)(B)--
            ``(1) Existing 80/20 company.--
                    ``(A) In general.--The term `existing 80/20 
                company' means any corporation if--
                            ``(i) such corporation met the 80-percent 
                        foreign business requirements of section 
                        861(c)(1) (as in effect before the date of the 
                        enactment of this subsection) for such 
                        corporation's last taxable year beginning 
                        before January 1, 2011,
                            ``(ii) such corporation meets the 80-
                        percent foreign business requirements of 
                        subparagraph (B) with respect to each taxable 
                        year after the taxable year referred to in 
                        clause (i), and
                            ``(iii) there has not been an addition of a 
                        substantial line of business with respect to 
                        such corporation after the date of the 
                        enactment of this subsection.
                    ``(B) Foreign business requirements.--
                            ``(i) In general.--Except as provided in 
                        clause (iv), a corporation meets the 80-percent 
                        foreign business requirements of this 
                        subparagraph if it is shown to the satisfaction 
                        of the Secretary that at least 80 percent of 
                        the gross income from all sources of such 
                        corporation for the testing period is active 
                        foreign business income.
                            ``(ii) Active foreign business income.--For 
                        purposes of clause (i), the term `active 
                        foreign business income' means gross income 
                        which--
                                    ``(I) is derived from sources 
                                outside the United States (as 
                                determined under this subchapter), and
                                    ``(II) is attributable to the 
                                active conduct of a trade or business 
                                in a foreign country or possession of 
                                the United States.
                            ``(iii) Testing period.--For purposes of 
                        this subsection, the term `testing period' 
                        means the 3-year period ending with the close 
                        of the taxable year of the corporation 
                        preceding the payment (or such part of such 
                        period as may be applicable). If the 
                        corporation has no gross income for such 3-year 
                        period (or part thereof), the testing period 
                        shall be the taxable year in which the payment 
                        is made.
                            ``(iv) Transition rule.--In the case of a 
                        taxable year for which the testing period 
                        includes 1 or more taxable years beginning 
                        before January 1, 2011--
                                    ``(I) a corporation meets the 80-
                                percent foreign business requirements 
                                of this subparagraph if and only if the 
                                weighted average of--
                                            ``(aa) the percentage of 
                                        the corporation's gross income 
                                        from all sources that is active 
                                        foreign business income (as 
                                        defined in subparagraph (B) of 
                                        section 861(c)(1) (as in effect 
                                        before the date of the 
                                        enactment of this subsection)) 
                                        for the portion of the testing 
                                        period that includes taxable 
                                        years beginning before January 
                                        1, 2011, and
                                            ``(bb) the percentage of 
                                        the corporation's gross income 
                                        from all sources that is active 
                                        foreign business income (as 
                                        defined in clause (ii) of this 
                                        subparagraph) for the portion 
                                        of the testing period, if any, 
                                        that includes taxable years 
                                        beginning on or after January 
                                        1, 2011,
                                is at least 80 percent, and
                                    ``(II) the active foreign business 
                                percentage for such taxable year shall 
                                equal the weighted average percentage 
                                determined under subclause (I).
            ``(2) Active foreign business percentage.--Except as 
        provided in paragraph (1)(B)(iv), the term `active foreign 
        business percentage' means, with respect to any existing 80/20 
        company, the percentage which--
                    ``(A) the active foreign business income of such 
                company for the testing period, is of
                    ``(B) the gross income of such company for the 
                testing period from all sources.
            ``(3) Aggregation rules.--For purposes of applying 
        paragraph (1) (other than subparagraphs (A)(i) and (B)(iv) 
        thereof) and paragraph (2)--
                    ``(A) In general.--The corporation referred to in 
                paragraph (1)(A) and all of such corporation's 
                subsidiaries shall be treated as one corporation.
                    ``(B) Subsidiaries.--For purposes of subparagraph 
                (A), the term `subsidiary' means any corporation in 
                which the corporation referred to in subparagraph (A) 
                owns (directly or indirectly) stock meeting the 
                requirements of section 1504(a)(2) (determined by 
                substituting `50 percent' for `80 percent' each place 
                it appears and without regard to section 1504(b)(3)).
            ``(4) Regulations.--The Secretary may issue such 
        regulations or other guidance as is necessary or appropriate to 
        carry out the purposes of this section, including regulations 
        or other guidance which provide for the proper application of 
        the aggregation rules described in paragraph (3).''.
    (c) Conforming Amendments.--
            (1) Section 861 of the Internal Revenue Code of 1986 is 
        amended by striking subsection (c) and by redesignating 
        subsections (d), (e), and (f) as subsections (c), (d), and (e), 
        respectively.
            (2) Paragraph (9) of section 904(h) of such Code is amended 
        to read as follows:
            ``(9) Treatment of certain domestic corporations.--In the 
        case of any dividend treated as not from sources within the 
        United States under section 861(a)(2)(A), the corporation 
        paying such dividend shall be treated for purposes of this 
        subsection as a United States-owned foreign corporation.''.
            (3) Subsection (c) of section 2104 of such Code is amended 
        in the last sentence by striking ``or to a debt obligation of a 
        domestic corporation'' and all that follows and inserting a 
        period.
    (d) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to taxable years 
        beginning after December 31, 2010.
            (2) Grandfather rule for outstanding debt obligations.--
                    (A) In general.--The amendments made by this 
                section shall not apply to payments of interest on 
                obligations issued before the date of the enactment of 
                this Act.
                    (B) Exception for related party debt.--Subparagraph 
                (A) shall not apply to any interest which is payable to 
                a related person (determined under rules similar to the 
                rules of section 954(d)(3)).
                    (C) Significant modifications treated as new 
                issues.--For purposes of subparagraph (A), a 
                significant modification of the terms of any obligation 
                (including any extension of the term of such 
                obligation) shall be treated as a new issue.

limitation on extension of statute of limitations for failure to notify 
                 secretary of certain foreign transfers

    Sec. 218.  (a) In General.--Paragraph (8) of section 6501(c) of the 
Internal Revenue Code of 1986 is amended--
            (1) by striking ``In the case of any information'' and 
        inserting the following:
                    ``(A) In general.--In the case of any 
                information''; and
            (2) by adding at the end the following:
                    ``(B) Application to failures due to reasonable 
                cause.--If the failure to furnish the information 
                referred to in subparagraph (A) is due to reasonable 
                cause and not willful neglect, subparagraph (A) shall 
                apply only to the item or items related to such 
                failure.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect as if included in section 513 of the Hiring Incentives to 
Restore Employment Act.

      elimination of advance refundability of earned income credit

    Sec. 219.  (a) In General.--The following provisions of the 
Internal Revenue Code of 1986 are repealed:
            (1) Section 3507.
            (2) Subsection (g) of section 32.
            (3) Paragraph (7) of section 6051(a).
    (b) Conforming Amendments.--
            (1) Section 6012(a) of the Internal Revenue Code of 1986 is 
        amended by striking paragraph (8) and by redesignating 
        paragraph (9) as paragraph (8).
            (2) Section 6302 of such Code is amended by striking 
        subsection (i).
            (3) The table of sections for chapter 25 of such Code is 
        amended by striking the item relating to section 3507.
    (c) Effective Date.--The repeals and amendments made by this 
section shall apply to taxable years beginning after December 31, 2010.

                               TITLE III

                              RESCISSIONS

    Sec. 301.  There is rescinded from accounts under the heading 
``Department of Agriculture--Rural Development'', $122,000,000, to be 
derived from the unobligated balances of funds that were provided for 
such accounts in prior appropriation Acts (other than Public Law 111-5) 
and that were designated by the Congress in such Acts as an emergency 
requirement pursuant to a concurrent resolution on the budget or the 
Balanced Budget and Emergency Deficit Control Act of 1985.
    Sec. 302.  Of the funds made available for ``Department of 
Commerce--National Telecommunications and Information Administration--
Broadband Technology Opportunities Program'' in title II of division A 
of Public Law 111-5, $302,000,000 are rescinded.
    Sec. 303.  Of the funds appropriated in Department of Defense 
Appropriations Acts, the following funds are rescinded from the 
following accounts in the specified amounts:
            ``Aircraft Procurement, Army, 2008/2010'', $21,000,000;
            ``Procurement of Weapons and Tracked Combat Vehicles, Army, 
        2008/2010'', $21,000,000;
            ``Procurement of Ammunition, Army, 2008/2010'', 
        $17,000,000;
            ``Other Procurement, Army, 2008/2010'', $75,000,000;
            ``Weapons Procurement, Navy, 2008/2010'', $26,000,000;
            ``Other Procurement, Navy, 2008/2010'', $42,000,000;
            ``Procurement, Marine Corps, 2008/2010'', $13,000,000;
            ``Aircraft Procurement, Air Force, 2008/2010'', 
        $102,000,000;
            ``Missile Procurement, Air Force, 2008/2010'', $28,000,000;
            ``Procurement of Ammunition, Air Force, 2008/2010'', 
        $7,000,000;
            ``Other Procurement, Air Force, 2008/2010'', $130,000,000;
            ``Procurement, Defense-Wide, 2008/2010'', $33,000,000;
            ``Research, Development, Test and Evaluation, Army, 2009/
        2010'', $76,000,000;
            ``Research, Development, Test and Evaluation, Air Force, 
        2009/2010'', $164,000,000;
            ``Research, Development, Test and Evaluation, Defense-Wide, 
        2009/2010'', $137,000,000;
            ``Operation, Test and Evaluation, Defense, 2009/2010'', 
        $1,000,000;
            ``Operation and Maintenance, Army, 2010'', $154,000,000;
            ``Operation and Maintenance, Navy, 2010'', $155,000,000;
            ``Operation and Maintenance, Marine Corps, 2010'', 
        $25,000,000;
            ``Operation and Maintenance, Air Force, 2010'', 
        $155,000,000;
            ``Operation and Maintenance, Defense-Wide, 2010'', 
        $126,000,000;
            ``Operation and Maintenance, Army Reserve, 2010'', 
        $12,000,000;
            ``Operation and Maintenance, Navy Reserve, 2010'', 
        $6,000,000;
            ``Operation and Maintenance, Marine Corps Reserve, 2010'', 
        $1,000,000;
            ``Operation and Maintenance, Air Force Reserve, 2010'', 
        $14,000,000;
            ``Operation and Maintenance, Army National Guard, 2010'', 
        $28,000,000; and
            ``Operation and Maintenance, Air National Guard, 2010'', 
        $27,000,000.
    Sec. 304. (a) Of the funds appropriated in the American Recovery 
and Reinvestment Act of 2009 (Public Law 111-5), the following funds 
are rescinded from the following accounts in the specified amounts:
            ``Operation and Maintenance, Army, 2009/2010'', 
        $113,500,000;
            ``Operation and Maintenance, Navy, 2009/2010'', 
        $34,000,000;
            ``Operation and Maintenance, Marine Corps, 2009/2010'', 
        $7,000,000;
            ``Operation and Maintenance, Air Force, 2009/2010'', 
        $61,000,000;
            ``Operation and Maintenance, Army Reserve, 2009/2010'', 
        $3,500,000;
            ``Operation and Maintenance, Navy Reserve, 2009/2010'', 
        $8,000,000;
            ``Operation and Maintenance, Marine Corps Reserve, 2009/
        2010'', $1,000,000;
            ``Operation and Maintenance, Air Force Reserve, 2009/
        2010'', $2,000,000;
            ``Operation and Maintenance, Army National Guard, 2009/
        2010'', $1,000,000;
            ``Operation and Maintenance, Air National Guard, 2009/
        2010'', $2,500,000; and
            ``Defense Health Program, 2009/2010'', $27,000,000.
    (b) Of the funds appropriated in the Supplemental Appropriations 
Act, 2008 (Public Law 110-252), the following funds are rescinded from 
the following account in the specified amount:
            ``Procurement, Marine Corps, 2009/2011'', $122,000,000.
    Sec. 305. (a) Of the funds appropriated for ``Procurement of 
Weapons and Tracked Combat Vehicles, Army'' in title III of division A 
of public Law 111-118, $116,000,000 are rescinded.
    (b) Of the funds appropriated for ``Other Procurement, Army'' in 
title III of division C of Public Law 110-329, $87,000,000 are 
rescinded.
    Sec. 306.  There are rescinded the following amounts from the 
specified accounts:
            (1) $20,000,000, to be derived from unobligated balances of 
        funds made available in prior appropriations Acts under the 
        heading ``Department of Energy--Nuclear Energy''.
    Sec. 307.  Of the unobligated balances of funds provided under the 
heading ``Nuclear Regulatory Commission'' in prior appropriations Acts, 
$18,000,000 is permanently rescinded.
    Sec. 308.  Of the funds made available for ``Department of Energy--
Title 17--Innovative Technology Loan Guarantee Program'' in title III 
of division A of Public Law 111-5, $1,500,000,000 are rescinded.
    Sec. 309.  There are permanently rescinded from ``General Services 
Administration--Real Property Activities--Federal Building Fund'', 
$75,000,000 from Rental of Space and $25,000,000 from Building 
Operations, to be derived from unobligated balances that were provided 
in previous appropriations Acts.
    Sec. 310.  Of the funds made available for ``Bureau of Indian 
Affairs--Indian Guaranteed Loan Program Account'' in title VII of 
division A of Public Law 111-5, $6,820,000 are rescinded.
    Sec. 311.  Of the funds made available for ``Environmental 
Protection Agency--Hazardous Substance Superfund'' in title VII of 
division A of Public Law 111-5, $2,600,000 are rescinded.
    Sec. 312.  Of the funds made available for ``Environmental 
Protection Agency--Leaking Underground Storage Tank Trust Fund 
Program'' in title VII of division A of Public Law 111-5, $9,200,000 
are rescinded.
    Sec. 313.  Of the funds made available for transfer in title VII of 
division A of Public Law 111-5, ``Environmental Protection Agency--
Environmental Programs and Management'', $10,000,000 are rescinded.
    Sec. 314.  Of the funds made available for ``National Park 
Service--Construction'' in chapter 7 of division B of Public Law 108-
324, $4,800,000 are rescinded.
    Sec. 315.  Of the funds made available for ``National Park 
Service--Construction'' in chapter 5 of title II of Public Law 109-234, 
$6,400,000 are rescinded.
    Sec. 316.  Of the funds made available for ``Fish and Wildlife 
Service--Construction'' in chapter 6 of title I of division B of Public 
Law 110-329, $3,000,000 are rescinded.
    Sec. 317.  The unobligated balance of funds appropriated in the 
Departments of Labor, Health and Human Services, and Education, and 
Related Agencies Appropriations Act, 1995 (Public Law 103-333; 108 
Stat. 2574) under the heading ``Public Health and Social Services 
Emergency Fund'' is rescinded.
    Sec. 318.  Of the funds appropriated for the Commissioner of Social 
Security under section 2201(e)(2)(B) in title II of division B of 
Public Law 111-5, $47,000,000 are rescinded.
    Sec. 319.  Of the funds appropriated in part VI of subtitle I of 
title II of division B of Public Law 111-5, $110,000,000 are rescinded, 
to be derived only from the amount provided under section 1899K(b) of 
such title.
    Sec. 320.  Of the funds appropriated for ``Department of 
Education--Education for the Disadvantaged'' in division D of Public 
Law 111-117, $50,000,000 are rescinded, to be derived only from the 
amount provided for a comprehensive literacy development and education 
program under section 1502 of the Elementary and Secondary Education 
Act of 1965.
    Sec. 321.  Of the funds appropriated for ``Department of 
Education--Student Aid Administration'' in division D of Public Law 
111-117, $82,000,000 are rescinded.
    Sec. 322.  Of the funds appropriated for ``Department of 
Education--Innovation and Improvement'' in division D of Public Law 
111-117, $10,700,000 are rescinded, to be derived only from the amount 
provided to carry out subpart 8 of part D of title V of the Elementary 
and Secondary Education Act of 1965.
    Sec. 323.  Of the unobligated balances available under ``Department 
of Defense, Military Construction, Army'' from prior appropriations 
Acts, $340,000,000 is rescinded: Provided, That no funds may be 
rescinded from amounts that were designated by the Congress as an 
emergency requirement or as appropriations for overseas deployments and 
other activities pursuant to a concurrent resolution on the budget or 
the Balanced Budget and Emergency Deficit Control Act of 1985.
    Sec. 324.  Of the unobligated balances available under ``Department 
of Defense, Military Construction, Navy and Marine Corps'' from prior 
appropriations Acts, $110,000,000 is rescinded: Provided, That no funds 
may be rescinded from amounts that were designated by the Congress as 
an emergency requirement or as appropriations for overseas deployments 
and other activities pursuant to a concurrent resolution on the budget 
or the Balanced Budget and Emergency Deficit Control Act of 1985.
    Sec. 325.  Of the unobligated balances available under ``Department 
of Defense, Military Construction, Air Force'' from prior 
appropriations Acts, $50,000,000 is rescinded: Provided, That no funds 
may be rescinded from amounts that were designated by the Congress as 
an emergency requirement or as appropriations for overseas deployments 
and other activities pursuant to a concurrent resolution on the budget 
or the Balanced Budget and Emergency Deficit Control Act of 1985.
    Sec. 326.  Of the funds made available for the General Operating 
Expenses account of the Department of Veterans Affairs in section 
2201(e)(4)(A)(ii) of division B of Public Law 111-5 (123 Stat. 454; 26 
U.S.C. 6428 note), $6,100,000 are rescinded.
    Sec. 327.  Of the amount appropriated or otherwise made available 
by title X of division A of Public Law 111-5, the American Recovery and 
Reinvestment Act of 2009, under the heading `` Departmental 
Administration, Information Technology Systems'' $5,000,000 is hereby 
rescinded.
    Sec. 328. (a) Millennium Challenge Corporation.--Of the unobligated 
balances available under the heading ``Millennium Challenge 
Corporation'' in title III of division H of Public Law 111-8 and under 
such heading in prior Acts making appropriations for the Department of 
State, foreign operations, and related programs, $50,000,000 are 
rescinded.
    (b) Civilian Stabilization Initiative.--
            (1) Department of state.--Of the unobligated balances 
        available under the heading ``Department of State--
        Administration of Foreign Affairs--Civilian Stabilization 
        Initiative'' in prior Acts making appropriations for the 
        Department of State, foreign operations, and related programs, 
        $40,000,000 are rescinded.
            (2) United states agency for international development.--Of 
        the unobligated balances available under the heading ``United 
        States Agency for International Development--Funds Appropriated 
        to the President--Civilian Stabilization Initiative'' in prior 
        Acts making appropriations for the Department of State, foreign 
        operations, and related programs, $30,000,000 are rescinded.
    Sec. 329.  There are rescinded the following amounts from the 
specified accounts:
            (1) ``Department of Transportation--Federal Aviation 
        Administration--Facilities and Equipment'', $2,182,544, to be 
        derived from unobligated balances made available under this 
        heading in Public Law 108-324.
            (2) ``Department of Transportation--Federal Aviation 
        Administration--Facilities and Equipment'', $5,705,750, to be 
        derived from unobligated balances made available under this 
        heading in Public Law 109-148.
    Sec. 330.  Of the unobligated balances of funds apportioned to each 
State under chapter 1 of title 23, United States Code, $2,200,000,000 
are permanently rescinded: Provided, That such rescission shall be 
distributed among the States in the same proportion as the funds 
subject to such rescission were apportioned to the States for fiscal 
year 2009: Provided further, That such rescission shall not apply to 
the funds distributed in accordance with sections 130(f) and 104(b)(5) 
of title 23, United States Code; sections 133(d)(1) and 163 of such 
title, as in effect on the day before the date of enactment of Public 
Law 109-59; and the first sentence of section 133(d)(3)(A) of such 
title: Provided further, That notwithstanding section 1132 of Public 
Law 110-140, in administering the rescission required under this 
heading, the Secretary of Transportation shall allow each State to 
determine the amount of the required rescission to be drawn from the 
programs to which the rescission applies.

                                TITLE IV

                          BUDGETARY PROVISIONS

                          budgetary provisions

    Sec. 401. 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.

            Attest:

                                                             Secretary.
111th CONGRESS

  2d Session

                               H.R. 1586

_______________________________________________________________________

        SENATE AMENDMENT TO HOUSE AMENDMENT TO SENATE AMENDMENT
```