PUBLIC LAW 111–92—NOV. 6, 2009 

WORKER, HOMEOWNERSHIP, AND BUSINESS 

ASSISTANCE ACT OF 2009 


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123 STAT. 2984 PUBLIC LAW 111–92—NOV. 6, 2009 

Public Law 111–92 

111th Congress 

An Act 

To amend the Supplemental Appropriations Act, 2008 to provide for the temporary 

availability of certain additional emergency unemployment compensation, and 

for other purposes. 

Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress assembled, 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Worker, Homeownership, and 

Business Assistance Act of 2009’’. 

SEC. 2. REVISIONS TO SECOND-TIER BENEFITS. 

(a) IN GENERAL.—Section 4002(c) of the Supplemental Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note) 

is amended— 

(1) in paragraph (1)— 

(A) in the matter preceding subparagraph (A), by 

striking ‘‘If’’ and all that follows through ‘‘paragraph (2))’’ 

and inserting ‘‘At the time that the amount established 

in an individual’s account under subsection (b)(1) is 

exhausted’’; 

(B) in subparagraph (A), by striking ‘‘50 percent’’ and 

inserting ‘‘54 percent’’; and 

(C) in subparagraph (B), by striking ‘‘13’’ and inserting 

‘‘14’’; 

(2) by striking paragraph (2); and 

(3) by redesignating paragraph (3) as paragraph (2). 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply as if included in the enactment of the Supplemental 

Appropriations Act, 2008, except that no amount shall be payable 

by virtue of such amendments with respect to any week of 

unemployment commencing before the date of the enactment of 

this Act. 

SEC. 3. THIRD-TIER EMERGENCY UNEMPLOYMENT COMPENSATION. 

(a) IN GENERAL.—Section 4002 of the Supplemental Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note) is 

amended by adding at the end the following new subsection: 

‘‘(d) THIRD-TIER EMERGENCY UNEMPLOYMENT COMPENSATION.— ‘‘(1) IN GENERAL.—If, at the time that the amount added 

to an individual’s account under subsection (c)(1) (hereinafter 

‘second-tier emergency unemployment compensation’) is 

exhausted or at any time thereafter, such individual’s State 

is in an extended benefit period (as determined under paragraph (2)), such account shall be further augmented by an 

Applicability. 

26 USC 3304 

note. 

26 USC 1 note. 

Worker, 

Homeownership, 

and Business 

Assistance Act of 

2009. 

Intergovernmental 

relations. 

Nov. 6, 2009 

[H.R. 3548] 


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PUBLIC LAW 111–92—NOV. 6, 2009 123 STAT. 2985 

amount (hereinafter ‘third-tier emergency unemployment compensation’) equal to the lesser of— 

‘‘(A) 50 percent of the total amount of regular compensation (including dependents’ allowances) payable to 

the individual during the individual’s benefit year under 

the State law; or 

‘‘(B) 13 times the individual’s average weekly benefit 

amount (as determined under subsection (b)(2)) for the 

benefit year. 

‘‘(2) EXTENDED BENEFIT PERIOD.—For purposes of paragraph (1), a State shall be considered to be in an extended 

benefit period, as of any given time, if— 

‘‘(A) such a period would then be in effect for such 

State under such Act if section 203(d) of such Act— 

‘‘(i) were applied by substituting ‘4’ for ‘5’ each 

place it appears; and 

‘‘(ii) did not include the requirement under paragraph (1)(A) thereof; or 

‘‘(B) such a period would then be in effect for such 

State under such Act if— 

‘‘(i) section 203(f) of such Act were applied to such 

State (regardless of whether the State by law had 

provided for such application); and 

‘‘(ii) such section 203(f)— 

‘‘(I) were applied by substituting ‘6.0’ for ‘6.5’ 

in paragraph (1)(A)(i) thereof; and 

‘‘(II) did not include the requirement under 

paragraph (1)(A)(ii) thereof. 

‘‘(3) LIMITATION.—The account of an individual may be 

augmented not more than once under this subsection.’’. 

(b) CONFORMING AMENDMENT TO NON-AUGMENTATION RULE.— 

Section 4007(b)(2) of the Supplemental Appropriations Act, 2008 

(Public Law 110–252; 26 U.S.C. 3304 note) is amended— 

(1) by striking ‘‘then section 4002(c)’’ and inserting ‘‘then 

subsections (c) and (d) of section 4002’’; and 

(2) by striking ‘‘paragraph (2) of such section)’’ and inserting 

‘‘paragraph (2) of such subsection (c) or (d) (as the case may 

be))’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply as if included in the enactment of the Supplemental 

Appropriations Act, 2008, except that no amount shall be payable 

by virtue of such amendments with respect to any week of 

unemployment commencing before the date of the enactment of 

this Act. 

SEC. 4. FOURTH-TIER EMERGENCY UNEMPLOYMENT COMPENSATION. 

(a) IN GENERAL.—Section 4002 of the Supplemental Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note), as 

amended by section 3(a), is amended by adding at the end the 

following new subsection: 

‘‘(e) FOURTH-TIER EMERGENCY UNEMPLOYMENT COMPENSA- TION.— 

‘‘(1) IN GENERAL.—If, at the time that the amount added 

to an individual’s account under subsection (d)(1) (third-tier 

emergency unemployment compensation) is exhausted or at 

any time thereafter, such individual’s State is in an extended 

benefit period (as determined under paragraph (2)), such 

Applicability. 

26 USC 3304 

note. 

Applicability. 


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123 STAT. 2986 PUBLIC LAW 111–92—NOV. 6, 2009 

account shall be further augmented by an amount (hereinafter 

‘fourth-tier emergency unemployment compensation’) equal to 

the lesser of— 

‘‘(A) 24 percent of the total amount of regular compensation (including dependents’ allowances) payable to 

the individual during the individual’s benefit year under 

the State law; or 

‘‘(B) 6 times the individual’s average weekly benefit 

amount (as determined under subsection (b)(2)) for the 

benefit year. 

‘‘(2) EXTENDED BENEFIT PERIOD.—For purposes of paragraph (1), a State shall be considered to be in an extended 

benefit period, as of any given time, if— 

‘‘(A) such a period would then be in effect for such 

State under such Act if section 203(d) of such Act— 

‘‘(i) were applied by substituting ‘6’ for ‘5’ each 

place it appears; and 

‘‘(ii) did not include the requirement under paragraph (1)(A) thereof; or 

‘‘(B) such a period would then be in effect for such 

State under such Act if— 

‘‘(i) section 203(f) of such Act were applied to such 

State (regardless of whether the State by law had 

provided for such application); and 

‘‘(ii) such section 203(f)— 

‘‘(I) were applied by substituting ‘8.5’ for ‘6.5’ 

in paragraph (1)(A)(i) thereof; and 

‘‘(II) did not include the requirement under 

paragraph (1)(A)(ii) thereof. 

‘‘(3) LIMITATION.—The account of an individual may be 

augmented not more than once under this subsection.’’. 

(b) CONFORMING AMENDMENT TO NON-AUGMENTATION RULE.— 

Section 4007(b)(2) of the Supplemental Appropriations Act, 2008 

(Public Law 110–252; 26 U.S.C. 3304 note), as amended by section 

3(b), is amended— 

(1) by striking ‘‘and (d)’’ and inserting ‘‘, (d), and (e) of 

section 4002’’; and 

(2) by striking ‘‘or (d)’’ and inserting ‘‘, (d), or (e) (as 

the case may be))’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply as if included in the enactment of the Supplemental 

Appropriations Act, 2008, except that no amount shall be payable 

by virtue of such amendments with respect to any week of 

unemployment commencing before the date of the enactment of 

this Act. 

SEC. 5. COORDINATION. 

Section 4002 of the Supplemental Appropriations Act, 2008 

(Public Law 110–252; 26 U.S.C. 3304 note), as amended by section 

4, is amended by adding at the end the following new subsection: 

‘‘(f) COORDINATION RULES.— 

‘‘(1) COORDINATION WITH EXTENDED COMPENSATION.—Notwithstanding an election under section 4001(e) by a State to 

provide for the payment of emergency unemployment compensation prior to extended compensation, such State may pay 

extended compensation to an otherwise eligible individual prior 

Applicability. 

26 USC 3304 

note. 

Applicability. 


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PUBLIC LAW 111–92—NOV. 6, 2009 123 STAT. 2987 

to any emergency unemployment compensation under subsection (c), (d), or (e) (by reason of the amendments made 

by sections 2, 3, and 4 of the Worker, Homeownership, and 

Business Assistance Act of 2009), if such individual claimed 

extended compensation for at least 1 week of unemployment 

after the exhaustion of emergency unemployment compensation 

under subsection (b) (as such subsection was in effect on the 

day before the date of the enactment of this subsection). 

‘‘(2) COORDINATION WITH TIERS II, III, AND IV.—If a State 

determines that implementation of the increased entitlement 

to second-tier emergency unemployment compensation by reason of the amendments made by section 2 of the Worker, 

Homeownership, and Business Assistance Act of 2009 would 

unduly delay the prompt payment of emergency unemployment 

compensation under this title by reason of the amendments 

made by such Act, such State may elect to pay third-tier emergency unemployment compensation prior to the payment of 

such increased second-tier emergency unemployment compensation until such time as such State determines that such 

increased second-tier emergency unemployment compensation 

may be paid without such undue delay. If a State makes 

the election under the preceding sentence, then, for purposes 

of determining whether an account may be augmented for 

fourth-tier emergency unemployment compensation under subsection (e), such State shall treat the date of exhaustion of 

such increased second-tier emergency unemployment compensation as the date of exhaustion of third-tier emergency unemployment compensation, if such date is later than the date of 

exhaustion of the third-tier emergency unemployment compensation.’’. 

SEC. 6. TRANSFER OF FUNDS. 

Section 4004(e)(1) of the Supplemental Appropriations Act, 2008 

(Public Law 110–252; 26 U.S.C. 3304 note) is amended by striking 

‘‘Act;’’ and inserting ‘‘Act and sections 2, 3, and 4 of the Worker, 

Homeownership, and Business Assistance Act of 2009;’’. 

SEC. 7. EXPANSION OF MODERNIZATION GRANTS FOR UNEMPLOYMENT RESULTING FROM COMPELLING FAMILY REASON. 

(a) IN GENERAL.—Clause (i) of section 903(f)(3)(B) of the Social 

Security Act (42 U.S.C. 1103(f)(3)(B)) is amended to read as follows: 

‘‘(i) One or both of the following offenses as selected 

by the State, but in making such selection, the 

resulting change in the State law shall not supercede 

any other provision of law relating to unemployment 

insurance to the extent that such other provision provides broader access to unemployment benefits for victims of such selected offense or offenses: 

‘‘(I) Domestic violence, verified by such reasonable and confidential documentation as the State 

law may require, which causes the individual 

reasonably to believe that such individual’s continued employment would jeopardize the safety of 

the individual or of any member of the individual’s 

immediate family (as defined by the Secretary of 

Labor); and 

‘‘(II) Sexual assault, verified by such reasonable and confidential documentation as the State 


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123 STAT. 2988 PUBLIC LAW 111–92—NOV. 6, 2009 

law may require, which causes the individual 

reasonably to believe that such individual’s continued employment would jeopardize the safety of 

the individual or of any member of the individual’s 

immediate family (as defined by the Secretary of 

Labor).’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall apply with respect to State applications submitted on and 

after January 1, 2010. 

SEC. 8. TREATMENT OF ADDITIONAL REGULAR COMPENSATION. 

The monthly equivalent of any additional compensation paid 

by reason of section 2002 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. 438) shall be disregarded after 

the date of the enactment of this Act in considering the amount 

of income and assets of an individual for purposes of determining 

such individual’s eligibility for, or amount of, benefits under the 

Supplemental Nutrition Assistance Program (SNAP). 

SEC. 9. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER 

THE RAILROAD UNEMPLOYMENT INSURANCE ACT. 

(a) BENEFITS.—Section 2(c)(2)(D) of the Railroad Unemployment 

Insurance Act, as added by section 2006 of the American Recovery 

and Reinvestment Act of 2009 (Public Law 111–5), is amended— 

(1) in clause (iii)— 

(A) by striking ‘‘June 30, 2009’’ and inserting ‘‘June 

30, 2010’’; and 

(B) by striking ‘‘December 31, 2009’’ and inserting 

‘‘December 31, 2010’’; and 

(2) by adding at the end of clause (iv) the following: ‘‘In 

addition to the amount appropriated by the preceding sentence, 

out of any funds in the Treasury not otherwise appropriated, 

there are appropriated $175,000,000 to cover the cost of additional extended unemployment benefits provided under this 

subparagraph, to remain available until expended.’’. 

(b) ADMINISTRATIVE EXPENSES.—Section 2006 of division B of 

the American Recovery and Reinvestment Act of 2009 (Public Law 

111–5; 123 Stat. 445) is amended by adding at the end of subsection 

(b) the following: ‘‘In addition to funds appropriated by the preceding 

sentence, out of any funds in the Treasury not otherwise appropriated, there are appropriated to the Railroad Retirement Board 

$807,000 to cover the administrative expenses associated with the 

payment of additional extended unemployment benefits under section 2(c)(2)(D) of the Railroad Unemployment Insurance Act, to 

remain available until expended.’’. 

SEC. 10. 0.2 PERCENT FUTA SURTAX. 

(a) IN GENERAL.—Section 3301 of the Internal Revenue Code 

of 1986 (relating to rate of tax) is amended— 

(1) by striking ‘‘through 2009’’ in paragraph (1) and 

inserting ‘‘through 2010 and the first 6 months of calendar 

year 2011’’, 

(2) by striking ‘‘calendar year 2010’’ in paragraph (2) and 

inserting ‘‘the remainder of calendar year 2011’’, and 

(3) by inserting ‘‘(or portion of the calendar year)’’ after 

‘‘during the calendar year’’. 

26 USC 3301. 

Ante, p. 445. 

26 USC 3304 

note. 

42 USC 1103 

note. 


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PUBLIC LAW 111–92—NOV. 6, 2009 123 STAT. 2989 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply to wages paid after December 31, 2009. 

SEC. 11. EXTENSION AND MODIFICATION OF FIRST-TIME HOMEBUYER 

TAX CREDIT. 

(a) EXTENSION OF APPLICATION PERIOD.— 

(1) IN GENERAL.—Subsection (h) of section 36 of the Internal 

Revenue Code of 1986 is amended— 

(A) by striking ‘‘December 1, 2009’’ and inserting ‘‘May 

1, 2010’’, 

(B) by striking ‘‘SECTION.—This section’’ and inserting 

‘‘SECTION.— 

‘‘(1) IN GENERAL.—This section’’, and 

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

‘‘(2) EXCEPTION IN CASE OF BINDING CONTRACT.—In the 

case of any taxpayer who enters into a written binding contract 

before May 1, 2010, to close on the purchase of a principal 

residence before July 1, 2010, paragraph (1) shall be applied 

by substituting ‘July 1, 2010’ for ‘May 1, 2010’.’’. 

(2) WAIVER OF RECAPTURE.— 

(A) IN GENERAL.—Subparagraph (D) of section 36(f)(4) 

of such Code is amended by striking ‘‘, and before December 

1, 2009’’. 

(B) CONFORMING AMENDMENT.—The heading of such 

subparagraph (D) is amended by inserting ‘‘AND 2010’’ after 

‘‘2009’’. 

(3) ELECTION TO TREAT PURCHASE IN PRIOR YEAR.—Subsection (g) of section 36 of such Code is amended to read 

as follows: 

‘‘(g) ELECTION TO TREAT PURCHASE IN PRIOR YEAR.—In the 

case of a purchase of a principal residence after December 31, 

2008, a taxpayer may elect to treat such purchase as made on 

December 31 of the calendar year preceding such purchase for 

purposes of this section (other than subsections (c), (f)(4)(D), and 

(h)).’’. 

(b) SPECIAL RULE FOR LONG-TIME RESIDENTS OF SAME PRINCIPAL RESIDENCE.—Subsection (c) of section 36 of the Internal Revenue Code of 1986 is amended by adding at the end the following 

new paragraph: 

‘‘(6) EXCEPTION FOR LONG-TIME RESIDENTS OF SAME PRINCIPAL RESIDENCE.—In the case of an individual (and, if married, 

such individual’s spouse) who has owned and used the same 

residence as such individual’s principal residence for any 5- 

consecutive-year period during the 8-year period ending on 

the date of the purchase of a subsequent principal residence, 

such individual shall be treated as a first-time homebuyer 

for purposes of this section with respect to the purchase of 

such subsequent residence.’’. 

(c) MODIFICATION OF DOLLAR AND INCOME LIMITATIONS.— 

(1) DOLLAR LIMITATION.—Subsection (b)(1) of section 36 

of the Internal Revenue Code of 1986 is amended by adding 

at the end the following new subparagraph: 

‘‘(D) SPECIAL RULE FOR LONG-TIME RESIDENTS OF SAME

PRINCIPAL RESIDENCE.—In the case of a taxpayer to whom 

a credit under subsection (a) is allowed by reason of subsection (c)(6), subparagraphs (A), (B), and (C) shall be 

Applicability. 

Time period. 

26 USC 36. 

26 USC 3301 

note. 


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123 STAT. 2990 PUBLIC LAW 111–92—NOV. 6, 2009 

applied by substituting ‘$6,500’ for ‘$8,000’ and ‘$3,250’ 

for ‘$4,000’.’’. 

(2) INCOME LIMITATION.—Subsection (b)(2)(A)(i)(II) of section 36 of such Code is amended by striking ‘‘$75,000 ($150,000’’ 

and inserting ‘‘$125,000 ($225,000’’. 

(d) LIMITATION ON PURCHASE PRICE OF RESIDENCE.—Subsection 

(b) of section 36 of the Internal Revenue Code of 1986 is amended 

by adding at the end the following new paragraph: 

‘‘(3) LIMITATION BASED ON PURCHASE PRICE.—No credit shall 

be allowed under subsection (a) for the purchase of any residence if the purchase price of such residence exceeds $800,000.’’. 

(e) WAIVER OF RECAPTURE OF FIRST-TIME HOMEBUYER CREDIT

FOR INDIVIDUALS ON QUALIFIED OFFICIAL EXTENDED DUTY.—Paragraph (4) of section 36(f) of the Internal Revenue Code of 1986 

is amended by adding at the end the following new subparagraph: 

‘‘(E) SPECIAL RULE FOR MEMBERS OF THE ARMED

FORCES, ETC.— 

‘‘(i) IN GENERAL.—In the case of the disposition 

of a principal residence by an individual (or a cessation 

referred to in paragraph (2)) after December 31, 2008, 

in connection with Government orders received by such 

individual, or such individual’s spouse, for qualified 

official extended duty service— 

‘‘(I) paragraph (2) and subsection (d)(2) shall 

not apply to such disposition (or cessation), and 

‘‘(II) if such residence was acquired before 

January 1, 2009, paragraph (1) shall not apply 

to the taxable year in which such disposition (or 

cessation) occurs or any subsequent taxable year. 

‘‘(ii) QUALIFIED OFFICIAL EXTENDED DUTY

SERVICE.—For purposes of this section, the term ‘qualified official extended duty service’ means service on 

qualified official extended duty as— 

‘‘(I) a member of the uniformed services, 

‘‘(II) a member of the Foreign Service of the 

United States, or 

‘‘(III) an employee of the intelligence community. 

‘‘(iii) DEFINITIONS.—Any term used in this 

subparagraph which is also used in paragraph (9) of 

section 121(d) shall have the same meaning as when 

used in such paragraph.’’. 

(f) EXTENSION OF FIRST-TIME HOMEBUYER CREDIT FOR INDIVIDUALS ON QUALIFIED OFFICIAL EXTENDED DUTY OUTSIDE THE UNITED

STATES.— 

(1) IN GENERAL.—Subsection (h) of section 36 of the Internal 

Revenue Code of 1986, as amended by subsection (a), is 

amended by adding at the end the following: 

‘‘(3) SPECIAL RULE FOR INDIVIDUALS ON QUALIFIED OFFICIAL

EXTENDED DUTY OUTSIDE THE UNITED STATES.—In the case of 

any individual who serves on qualified official extended duty 

service (as defined in section 121(d)(9)(C)(i)) outside the United 

States for at least 90 days during the period beginning after 

December 31, 2008, and ending before May 1, 2010, and, if 

married, such individual’s spouse— 

‘‘(A) paragraphs (1) and (2) shall each be applied by 

substituting ‘May 1, 2011’ for ‘May 1, 2010’, and 

Time period. 

Applicability. 

26 USC 36. 


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PUBLIC LAW 111–92—NOV. 6, 2009 123 STAT. 2991 

‘‘(B) paragraph (2) shall be applied by substituting 

‘July 1, 2011’ for ‘July 1, 2010’.’’. 

(g) DEPENDENTS INELIGIBLE FOR CREDIT.—Subsection (d) of section 36 of the Internal Revenue Code of 1986 is amended by striking 

‘‘or’’ at the end of paragraph (1), by striking the period at the 

end of paragraph (2) and inserting ‘‘, or’’, and by adding at the 

end the following new paragraph: 

‘‘(3) a deduction under section 151 with respect to such 

taxpayer is allowable to another taxpayer for such taxable 

year.’’. 

(h) IRS MATHEMATICAL ERROR AUTHORITY.—Paragraph (2) of 

section 6213(g) of the Internal Revenue Code of 1986 is amended— 

(1) by striking ‘‘and’’ at the end of subparagraph (M), 

(2) by striking the period at the end of subparagraph (N) 

and inserting ‘‘, and’’, and 

(3) by inserting after subparagraph (N) the following new 

subparagraph: 

‘‘(O) an omission of any increase required under section 

36(f) with respect to the recapture of a credit allowed 

under section 36.’’. 

(i) COORDINATION WITH FIRST-TIME HOMEBUYER CREDIT FOR

DISTRICT OF COLUMBIA.—Paragraph (4) of section 1400C(e) of the 

Internal Revenue Code of 1986 is amended by striking ‘‘and before 

December 1, 2009,’’. 

(j) EFFECTIVE DATES.— 

(1) IN GENERAL.—The amendments made by subsections 

(b), (c), (d), and (g) shall apply to residences purchased after 

the date of the enactment of this Act. 

(2) EXTENSIONS.—The amendments made by subsections 

(a), (f), and (i) shall apply to residences purchased after 

November 30, 2009. 

(3) WAIVER OF RECAPTURE.—The amendment made by subsection (e) shall apply to dispositions and cessations after 

December 31, 2008. 

(4) MATHEMATICAL ERROR AUTHORITY.—The amendments 

made by subsection (h) shall apply to returns for taxable years 

ending on or after April 9, 2008. 

SEC. 12. PROVISIONS TO ENHANCE THE ADMINISTRATION OF THE 

FIRST-TIME HOMEBUYER TAX CREDIT. 

(a) AGE LIMITATION.— 

(1) IN GENERAL.—Subsection (b) of section 36 of the Internal 

Revenue Code of 1986, as amended by this Act, is amended 

by adding at the end the following new paragraph: 

‘‘(4) AGE LIMITATION.—No credit shall be allowed under 

subsection (a) with respect to the purchase of any residence 

unless the taxpayer has attained age 18 as of the date of 

such purchase. In the case of any taxpayer who is married 

(within the meaning of section 7703), the taxpayer shall be 

treated as meeting the age requirement of the preceding sentence if the taxpayer or the taxpayer’s spouse meets such 

age requirement.’’. 

(2) CONFORMING AMENDMENT.—Subsection (g) of section 

36 of such Code, as amended by this Act, is amended by 

inserting ‘‘(b)(4),’’ before ‘‘(c)’’. 

(b) DOCUMENTATION REQUIREMENT.—Subsection (d) of section 

36 of the Internal Revenue Code of 1986, as amended by this 

26 USC 36. 

26 USC 6213 

note. 

26 USC 36 note. 

26 USC 36 note. 

26 USC 36 note. 

Applicability. 

26 USC 1400C. 

26 USC 6213. 

26 USC 36. 


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123 STAT. 2992 PUBLIC LAW 111–92—NOV. 6, 2009 

Act, is amended by striking ‘‘or’’ at the end of paragraph (2), 

by striking the period at the end of paragraph (3) and inserting 

‘‘, or’’, and by adding at the end the following new paragraph: 

‘‘(4) the taxpayer fails to attach to the return of tax for 

such taxable year a properly executed copy of the settlement 

statement used to complete such purchase.’’. 

(c) RESTRICTION ON MARRIED INDIVIDUAL ACQUIRING RESIDENCE

FROM FAMILY OF SPOUSE.—Clause (i) of section 36(c)(3)(A) of the 

Internal Revenue Code of 1986 is amended by inserting ‘‘(or, if 

married, such individual’s spouse)’’ after ‘‘person acquiring such 

property’’. 

(d) CERTAIN ERRORS WITH RESPECT TO THE FIRST-TIME HOME- BUYER TAX CREDIT TREATED AS MATHEMATICAL OR CLERICAL

ERRORS.—Paragraph (2) of section 6213(g) the Internal Revenue 

Code of 1986, as amended by this Act, is amended by striking 

‘‘and’’ at the end of subparagraph (N), by striking the period at 

the end of subparagraph (O) and inserting ‘‘, and’’, and by inserting 

after subparagraph (O) the following new subparagraph: 

‘‘(P) an entry on a return claiming the credit under 

section 36 if— 

‘‘(i) the Secretary obtains information from the 

person issuing the TIN of the taxpayer that indicates 

that the taxpayer does not meet the age requirement 

of section 36(b)(4), 

‘‘(ii) information provided to the Secretary by the 

taxpayer on an income tax return for at least one 

of the 2 preceding taxable years is inconsistent with 

eligibility for such credit, or 

‘‘(iii) the taxpayer fails to attach to the return 

the form described in section 36(d)(4).’’. 

(e) EFFECTIVE DATE.— 

(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section shall apply to 

purchases after the date of the enactment of this Act. 

(2) DOCUMENTATION REQUIREMENT.—The amendments 

made by subsection (b) shall apply to returns for taxable years 

ending after the date of the enactment of this Act. 

(3) TREATMENT AS MATHEMATICAL AND CLERICAL ERRORS.— 

The amendments made by subsection (d) shall apply to returns 

for taxable years ending on or after April 9, 2008. 

SEC. 13. 5-YEAR CARRYBACK OF OPERATING LOSSES. 

(a) IN GENERAL.—Subparagraph (H) of section 172(b)(1) of the 

Internal Revenue Code of 1986 is amended to read as follows: 

‘‘(H) CARRYBACK FOR 2008 OR 2009 NET OPERATING

LOSSES.— 

‘‘(i) IN GENERAL.—In the case of an applicable net 

operating loss with respect to which the taxpayer has 

elected the application of this subparagraph— 

‘‘(I) subparagraph (A)(i) shall be applied by 

substituting any whole number elected by the taxpayer which is more than 2 and less than 6 for 

‘2’, 

‘‘(II) subparagraph (E)(ii) shall be applied by 

substituting the whole number which is one less 

than the whole number substituted under subclause (I) for ‘2’, and 

Applicability. 

26 USC 172. 

Applicability. 

26 USC 36 note. 

26 USC 6213. 

26 USC 36. 


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‘‘(III) subparagraph (F) shall not apply. 

‘‘(ii) APPLICABLE NET OPERATING LOSS.—For purposes of this subparagraph, the term ‘applicable net 

operating loss’ means the taxpayer’s net operating loss 

for a taxable year ending after December 31, 2007, 

and beginning before January 1, 2010. 

‘‘(iii) ELECTION.— ‘‘(I) IN GENERAL.—Any election under this 

subparagraph may be made only with respect to 

1 taxable year. 

‘‘(II) PROCEDURE.—Any election under this 

subparagraph shall be made in such manner as 

may be prescribed by the Secretary, and shall be 

made by the due date (including extension of time) 

for filing the return for the taxpayer’s last taxable 

year beginning in 2009. Any such election, once 

made, shall be irrevocable. 

‘‘(iv) LIMITATION ON AMOUNT OF LOSS CARRYBACK

TO 5TH PRECEDING TAXABLE YEAR.— 

‘‘(I) IN GENERAL.—The amount of any net operating loss which may be carried back to the 5th 

taxable year preceding the taxable year of such 

loss under clause (i) shall not exceed 50 percent 

of the taxpayer’s taxable income (computed without regard to the net operating loss for the loss 

year or any taxable year thereafter) for such preceding taxable year. 

‘‘(II) CARRYBACKS AND CARRYOVERS TO OTHER

TAXABLE YEARS.—Appropriate adjustments in the 

application of the second sentence of paragraph 

(2) shall be made to take into account the limitation of subclause (I). 

‘‘(III) EXCEPTION FOR 2008 ELECTIONS BY SMALL

BUSINESSES.—Subclause (I) shall not apply to any 

loss of an eligible small business with respect to 

any election made under this subparagraph as in 

effect on the day before the date of the enactment 

of the Worker, Homeownership, and Business 

Assistance Act of 2009. 

‘‘(v) SPECIAL RULES FOR SMALL BUSINESS.— 

‘‘(I) IN GENERAL.—In the case of an eligible 

small business which made or makes an election 

under this subparagraph as in effect on the day 

before the date of the enactment of the Worker, 

Homeownership, and Business Assistance Act of 

2009, clause (iii)(I) shall be applied by substituting 

‘2 taxable years’ for ‘1 taxable year’. 

‘‘(II) ELIGIBLE SMALL BUSINESS.—For purposes 

of this subparagraph, the term ‘eligible small business’ has the meaning given such term by subparagraph (F)(iii), except that in applying such 

subparagraph, section 448(c) shall be applied by 

substituting ‘$15,000,000’ for ‘$5,000,000’ each 

place it appears.’’. 

(b) ALTERNATIVE TAX NET OPERATING LOSS DEDUCTION.—Subclause (I) of section 56(d)(1)(A)(ii)of the Internal Revenue Code 

of 1986 is amended to read as follows: 26 USC 56. 

Definition. 

Time period. 


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123 STAT. 2994 PUBLIC LAW 111–92—NOV. 6, 2009 

‘‘(I) the amount of such deduction attributable 

to an applicable net operating loss with respect 

to which an election is made under section 

172(b)(1)(H), or’’. 

(c) LOSS FROM OPERATIONS OF LIFE INSURANCE COMPANIES.— Subsection (b) of section 810 of the Internal Revenue Code of 

1986 is amended by adding at the end the following new paragraph: 

‘‘(4) CARRYBACK FOR 2008 OR 2009 LOSSES.— ‘‘(A) IN GENERAL.—In the case of an applicable loss 

from operations with respect to which the taxpayer has 

elected the application of this paragraph, paragraph (1)(A) 

shall be applied by substituting any whole number elected 

by the taxpayer which is more than 3 and less than 6 

for ‘3’. 

‘‘(B) APPLICABLE LOSS FROM OPERATIONS.—For purposes of this paragraph, the term ‘applicable loss from 

operations’ means the taxpayer’s loss from operations for 

a taxable year ending after December 31, 2007, and beginning before January 1, 2010. 

‘‘(C) ELECTION.— 

‘‘(i) IN GENERAL.—Any election under this paragraph may be made only with respect to 1 taxable 

year. 

‘‘(ii) PROCEDURE.—Any election under this paragraph shall be made in such manner as may be prescribed by the Secretary, and shall be made by the 

due date (including extension of time) for filing the 

return for the taxpayer’s last taxable year beginning 

in 2009. Any such election, once made, shall be irrevocable. 

‘‘(D) LIMITATION ON AMOUNT OF LOSS CARRYBACK TO

5TH PRECEDING TAXABLE YEAR.— 

‘‘(i) IN GENERAL.—The amount of any loss from 

operations which may be carried back to the 5th taxable year preceding the taxable year of such loss under 

subparagraph (A) shall not exceed 50 percent of the 

taxpayer’s taxable income (computed without regard 

to the loss from operations for the loss year or any 

taxable year thereafter) for such preceding taxable 

year. 

‘‘(ii) CARRYBACKS AND CARRYOVERS TO OTHER TAXABLE YEARS.—Appropriate adjustments in the application of the second sentence of paragraph (2) shall be 

made to take into account the limitation of clause 

(i).’’. 

(d) ANTI-ABUSE RULES.—The Secretary of Treasury or the Secretary’s designee shall prescribe such rules as are necessary to 

prevent the abuse of the purposes of the amendments made by 

this section, including anti-stuffing rules, anti-churning rules 

(including rules relating to sale-leasebacks), and rules similar to 

the rules under section 1091 of the Internal Revenue Code of 

1986 relating to losses from wash sales. 

(e) EFFECTIVE DATES.— 

(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section shall apply to 

net operating losses arising in taxable years ending after 

December 31, 2007. 

Applicability. 

26 USC 56 note. 

26 USC 172 note. 

Definition. 

Time period. 

Applicability. 

26 USC 810. 


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PUBLIC LAW 111–92—NOV. 6, 2009 123 STAT. 2995 

(2) ALTERNATIVE TAX NET OPERATING LOSS DEDUCTION.— 

The amendment made by subsection (b) shall apply to taxable 

years ending after December 31, 2002. 

(3) LOSS FROM OPERATIONS OF LIFE INSURANCE COMPANIES.—The amendment made by subsection (d) shall apply to 

losses from operations arising in taxable years ending after 

December 31, 2007. 

(4) TRANSITIONAL RULE.—In the case of any net operating 

loss (or, in the case of a life insurance company, any loss 

from operations) for a taxable year ending before the date 

of the enactment of this Act— 

(A) any election made under section 172(b)(3) or 

810(b)(3) of the Internal Revenue Code of 1986 with respect 

to such loss may (notwithstanding such section) be revoked 

before the due date (including extension of time) for filing 

the return for the taxpayer’s last taxable year beginning 

in 2009, and 

(B) any application under section 6411(a) of such Code 

with respect to such loss shall be treated as timely filed 

if filed before such due date. 

(f) EXCEPTION FOR TARP RECIPIENTS.—The amendments made 

by this section shall not apply to— 

(1) any taxpayer if— 

(A) the Federal Government acquired before the date 

of the enactment of this Act an equity interest in the 

taxpayer pursuant to the Emergency Economic Stabilization Act of 2008, 

(B) the Federal Government acquired before such date 

of enactment any warrant (or other right) to acquire any 

equity interest with respect to the taxpayer pursuant to 

the Emergency Economic Stabilization Act of 2008, or 

(C) such taxpayer receives after such date of enactment 

funds from the Federal Government in exchange for an 

interest described in subparagraph (A) or (B) pursuant 

to a program established under title I of division A of 

the Emergency Economic Stabilization Act of 2008 (unless 

such taxpayer is a financial institution (as defined in section 3 of such Act) and the funds are received pursuant 

to a program established by the Secretary of the Treasury 

for the stated purpose of increasing the availability of 

credit to small businesses using funding made available 

under such Act), or 

(2) the Federal National Mortgage Association and the 

Federal Home Loan Mortgage Corporation, and 

(3) any taxpayer which at any time in 2008 or 2009 was 

or is a member of the same affiliated group (as defined in 

section 1504 of the Internal Revenue Code of 1986, determined 

without regard to subsection (b) thereof) as a taxpayer described 

in paragraph (1) or (2). 

SEC. 14. EXCLUSION FROM GROSS INCOME OF QUALIFIED MILITARY 

BASE REALIGNMENT AND CLOSURE FRINGE. 

(a) IN GENERAL.—Subsection (n) of section 132 of the Internal 

Revenue Code of 1986 is amended— 

(1) in subparagraph (1) by striking ‘‘this subsection) to 

offset the adverse effects on housing values as a result of 

26 USC 132. 

26 USC 56 note. 


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123 STAT. 2996 PUBLIC LAW 111–92—NOV. 6, 2009 

a military base realignment or closure’’ and inserting ‘‘the 

American Recovery and Reinvestment Tax Act of 2009)’’, and 

(2) in subparagraph (2) by striking ‘‘clause (1) of’’. 

(b) EFFECTIVE DATE.—The amendments made by this act shall 

apply to payments made after February 17, 2009. 

SEC. 15. DELAY IN APPLICATION OF WORLDWIDE ALLOCATION OF 

INTEREST. 

(a) IN GENERAL.—Paragraphs (5)(D) and (6) of section 864(f) 

of the Internal Revenue Code of 1986 are each amended by striking 

‘‘December 31, 2010’’ and inserting ‘‘December 31, 2017’’. 

(b) CONFORMING AMENDMENT.—Section 864(f) of the Internal 

Revenue Code of 1986 is amended by striking paragraph (7). 

(c) EFFECTIVE DATES.—The amendments made by this section 

shall apply to taxable years beginning after December 31, 2010. 

SEC. 16. INCREASE IN PENALTY FOR FAILURE TO FILE A PARTNERSHIP 

OR S CORPORATION RETURN. 

(a) IN GENERAL.—Sections 6698(b)(1) and 6699(b)(1) of the 

Internal Revenue Code of 1986 are each amended by striking ‘‘$89’’ 

and inserting ‘‘$195’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply to returns for taxable years beginning after December 

31, 2009. 

SEC. 17. CERTAIN TAX RETURN PREPARERS REQUIRED TO FILE 

RETURNS ELECTRONICALLY. 

(a) IN GENERAL.—Subsection (e) of section 6011 of the Internal 

Revenue Code of 1986 is amended by adding at the end the following 

new paragraph: 

‘‘(3) SPECIAL RULE FOR TAX RETURN PREPARERS.— 

‘‘(A) IN GENERAL.—The Secretary shall require than 

any individual income tax return prepared by a tax return 

preparer be filed on magnetic media if— 

‘‘(i) such return is filed by such tax return preparer, and 

‘‘(ii) such tax return preparer is a specified tax 

return preparer for the calendar year during which 

such return is filed. 

‘‘(B) SPECIFIED TAX RETURN PREPARER.—For purposes 

of this paragraph, the term ‘specified tax return preparer’ 

means, with respect to any calendar year, any tax return 

preparer unless such preparer reasonably expects to file 

10 or fewer individual income tax returns during such 

calendar year. 

‘‘(C) INDIVIDUAL INCOME TAX RETURN.—For purposes 

of this paragraph, the term ‘individual income tax return’ 

means any return of the tax imposed by subtitle A on 

individuals, estates, or trusts.’’. 

(b) CONFORMING AMENDMENT.—Paragraph (1) of section 6011(e) 

of the Internal Revenue Code of 1986 is amended by striking 

‘‘The Secretary may not’’ and inserting ‘‘Except as provided in 

paragraph (3), the Secretary may not’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to returns filed after December 31, 2010. 

26 USC 6011 

note. 

26 USC 6011. 

26 USC 6698 

note. 

26 USC 6698, 

6699. 

26 USC 864 note. 

26 USC 864. 

26 USC 132 note. 


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PUBLIC LAW 111–92—NOV. 6, 2009 123 STAT. 2997 

LEGISLATIVE HISTORY—H.R. 3548: 

CONGRESSIONAL RECORD, Vol. 155 (2009): 

Sept. 22, considered and passed House. 

Oct. 29, Nov. 2–4, considered and passed Senate, amended. 

Nov. 5, House concurred in Senate amendment. 

Æ 

SEC. 18. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES. 

The percentage under paragraph (1) of section 202(b) of the 

Corporate Estimated Tax Shift Act of 2009 in effect on the date 

of the enactment of this Act is increased by 33.0 percentage points. 

Approved November 6, 2009. 

26 USC 6655 

note. 


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