89–008 

111TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 111–426 

PROVIDING FOR CONSIDERATION OF THE SENATE AMENDMENT TO THE 

BILL (H.R. 2847) MAKING APPROPRIATIONS FOR THE DEPARTMENTS OF 

COMMERCE AND JUSTICE, AND SCIENCE, AND RELATED AGENCIES FOR 

THE FISCAL YEAR ENDING SEPTEMBER 30, 2010, AND FOR OTHER PURPOSES 

March 4, 2010.—Referred to the House Calendar and ordered to be printed 

Ms. MATSUI, from the Committee on Rules, 

submitted the following 

R E P O R T 

[To accompany H. Res. 1137] 

The Committee on Rules, having had under consideration House 

Resolution 1137, by a nonrecord vote, report the same to the House 

with the recommendation that the resolution be adopted. 

SUMMARY OF PROVISIONS OF THE RESOLUTION

The resolution provides for the consideration of the Senate 

amendment to H.R. 2847, the Hiring Incentives to Restore Employment Act (originally making appropriations for the Departments of 

Commerce and Justice, and Science, and Related Agencies for the 

fiscal year ending September 30, 2010, and for other purposes). The 

resolution makes in order a motion offered by the chair of the Committee on Ways and Means that the House concur in the Senate 

amendment to the House amendment to the Senate amendment 

with the amendment printed in this report. The resolution waives 

all points of order against consideration of the motion except those 

arising under clause 10 of rule XXI. The resolution provides that 

the Senate amendment and the motion shall be considered as read. 

The resolution provides one hour of debate on the motion equally 

divided and controlled by the chair and ranking minority member 

of the Committee on Ways and Means. 

EXPLANATION OF WAIVERS

The waiver of all points of order against consideration of the motion (except those arising under clause 10 of rule XXI) includes a 

waiver of clause 6 of rule XVI (prohibiting amendments in the 

third degree). 


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COMMITTEE VOTES

The results of each record vote on an amendment or motion to 

report, together with the names of those voting for and against, are 

printed below: 

Rules Committee record vote No. 325 

Date: March 4, 2010. 

Measure: Senate amendment to H.R. 2847. 

Motion by: Mr. Dreier. 

Summary of motion: To make in order an amendment, if offered 

by the Republican Leader or his designee. 

Results: Defeated 3–7. 

Vote by Members: McGovern—Nay; Hastings (FL)—Nay; Matsui—Nay; Cardoza—Nay; Arcuri—Nay; Pingree—Nay; Dreier— 

Yea; Diaz-Balart, L.—Yea; Foxx—Yea; Slaughter—Nay. 

SUMMARY OF HOUSE AMENDMENT MADE IN ORDER

The amendment makes technical corrections to improve the effectiveness and administrability of incentives for hiring and retaining 

new employees, and extends these benefits to businesses in U.S. 

territories and possessions; restores the full value of the direct payment option for certain tax credit bond programs; delays the effective date of the worldwide allocation of interest provision for an additional year (through 2020) to ensure that the cost of the bill is 

fully offset; and provides for continuation and enforcement of disadvantaged, minority, and women-owned business enterprise contracting requirements for surface transportation projects. 

TEXT OF HOUSE AMENDMENT MADE IN ORDER

Concur in the Senate amendment (hereinafter referred to as the 

‘‘pending Senate amendment’’) to the House amendment to the 

Senate amendment to H.R. 2847 with the following amendment: 

(1) In section 101 of the matter proposed to be inserted by 

the pending Senate amendment— 

(A) In section 3111(d) of the Internal Revenue Code of 

1986, as proposed to be added by subsection (a) of such 

section 101, add at the end the following new paragraph: 

‘‘(5) SPECIAL RULE FOR FIRST CALENDAR QUARTER OF 2010.— 

‘‘(A) NONAPPLICATION OF EXEMPTION DURING FIRST QUARTER.—Paragraph (1) shall not apply with respect to wages 

paid during the first calendar quarter of 2010. 

‘‘(B) CREDITING OF FIRST QUARTER EXEMPTION DURING

SECOND QUARTER.—The amount by which the tax imposed 

under subsection (a) would (but for subparagraph (A)) 

have been reduced with respect to wages paid by a qualified employer during the first calendar quarter of 2010 

shall be treated as a payment against the tax imposed 

under subsection (a) with respect to the qualified employer 

for the second calendar quarter of 2010 which is made on 

the date that such tax is due.’’. 

(B) Strike subsection (d) of such section 101 and insert 

the following new subsections: 

(d) APPLICATION TO RAILROAD RETIREMENT TAXES.— 


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(1) IN GENERAL.—Section 3221 of the Internal Revenue Code 

of 1986 is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following 

new subsection: 

‘‘(c) SPECIAL RATE FOR CERTAIN INDIVIDUALS HIRED IN 2010.— 

‘‘(1) IN GENERAL.—In the case of compensation paid by a 

qualified employer during the period beginning on the day 

after the date of the enactment of this subsection and ending 

on December 31, 2010, with respect to having a qualified individual in the employer’s employ for services rendered to such 

qualified employer, the applicable percentage under subsection 

(a) shall be equal to the rate of tax in effect under section 

3111(b) for the calendar year. 

‘‘(2) QUALIFIED EMPLOYER.—The term ‘qualified employer’ 

means any employer other than the United States, any State, 

or any political subdivision thereof, or any instrumentality of 

the foregoing. 

‘‘(3) QUALIFIED INDIVIDUAL.—For purposes of this subsection, 

the term ‘qualified individual’ means any individual who— 

‘‘(A) begins employment with a qualified employer after 

February 3, 2010, and before January 1, 2011, 

‘‘(B) certifies by signed affidavit, under penalties of perjury, that such individual has not been employed for more 

than 40 hours during the 60-day period ending on the date 

such individual begins such employment, 

‘‘(C) is not employed by the qualified employer to replace 

another employee of such employer unless such other employee separated from employment voluntarily or for 

cause, and 

‘‘(D) is not an individual described in section 51(i)(1) (applied by substituting ‘qualified employer’ for ‘taxpayer’ 

each place it appears). 

‘‘(4) ELECTION.—A qualified employer may elect to have this 

subsection not apply. Such election shall be made in such manner as the Secretary may require. 

‘‘(5) SPECIAL RULE FOR FIRST CALENDAR QUARTER OF 2010.— ‘‘(A) NONAPPLICATION OF EXEMPTION DURING FIRST QUAR- TER.—Paragraph (1) shall not apply with respect to compensation paid during the first calendar quarter of 2010. 

‘‘(B) CREDITING OF FIRST QUARTER EXEMPTION DURING

SECOND QUARTER.—The amount by which the tax imposed 

under subsection (a) would (but for subparagraph (A)) 

have been reduced with respect to compensation paid by a 

qualified employer during the first calendar quarter of 

2010 shall be treated as a payment against the tax imposed under subsection (a) with respect to the qualified 

employer for the second calendar quarter of 2010 which is 

made on the date that such tax is due.’’. 

(2) TRANSFERS TO SOCIAL SECURITY EQUIVALENT BENEFIT AC- COUNT.—There are hereby appropriated to the Social Security 

Equivalent Benefit Account established under section 15A(a) of 

the Railroad Retirement Act of 1974 (45 U.S.C. 231n–1(a)) 

amounts equal to the reduction in revenues to the Treasury by 

reason of the amendments made by paragraph (1). Amounts 

appropriated by the preceding sentence shall be transferred 


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from the general fund at such times and in such manner as to 

replicate to the extent possible the transfers which would have 

occurred to such Account had such amendments not been enacted. 

(e) EFFECTIVE DATES.— 

(1) IN GENERAL.—Except as provided in paragraph (2), the 

amendments made by this subsection shall apply to wages paid 

after the date of the enactment of this Act. 

(2) RAILROAD RETIREMENT TAXES.—The amendments made 

by subsection (d) shall apply to compensation paid after the 

date of the enactment of this Act. 

(2) In section 102 of the matter proposed to be inserted by 

the pending Senate amendment— 

(A) Strike subsection (a) of such section 102 and insert 

the following new subsection: 

(a) IN GENERAL.—In the case of any taxable year ending after the 

date of the enactment of this Act, the current year business credit 

determined under section 38(b) of the Internal Revenue Code of 

1986 for such taxable year shall be increased, with respect to each 

retained worker with respect to which subsection (b)(2) is first satisfied during such taxable year, by the lesser of— 

(1) $1,000, or 

(2) 6.2 percent of the wages (as defined in section 3401(a)) 

paid by the taxpayer to such retained worker during the 52 

consecutive week period referred to in subsection (b)(2). 

(B) In subsection (b) of such section 102, insert ‘‘or section 3221(c)(3)’’ after ‘‘section 3111(d)(3)’’. 

(C) In subsection (b)(3) of such section 102, insert ‘‘(as 

defined in section 3401(a))’’ after ‘‘wages’’ the first place it 

appears therein. 

(D) At the end of such section 102, add the following new 

subsection: 

(d) TREATMENT OF POSSESSIONS.— 

(1) PAYMENTS TO POSSESSIONS.— 

(A) MIRROR CODE POSSESSIONS.—The Secretary of the 

Treasury shall pay to each possession of the United States 

with a mirror code tax system amounts equal to the loss 

to that possession by reason of the application of this section (other than this subsection). Such amounts shall be 

determined by the Secretary of the Treasury based on information provided by the government of the respective 

possession. 

(B) OTHER POSSESSIONS.—The Secretary of the Treasury 

shall pay to each possession of the United States which 

does not have a mirror code tax system amounts estimated 

by the Secretary of the Treasury as being equal to the aggregate benefits that would have been provided to residents of such possession by reason of the application of 

this section (other than this subsection) if a mirror code 

tax system had been in effect in such possession. The preceding sentence shall not apply with respect to any possession of the United States unless such possession has a 

plan, which has been approved by the Secretary of the 


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Treasury, under which such possession will promptly distribute such payments to the residents of such possession. 

(2) COORDINATION WITH CREDIT ALLOWED AGAINST UNITED

STATES INCOME TAXES.—No increase in the credit determined 

under section 38(b) of the Internal Revenue Code of 1986 

against United States income taxes for any taxable year determined under subsection (a) shall be taken into account with respect to any person— 

(A) to whom a credit is allowed against taxes imposed by 

the possession by reason of this section for such taxable 

year, or 

(B) who is eligible for a payment under a plan described 

in paragraph (1)(B) with respect to such taxable year. 

(3) DEFINITIONS AND SPECIAL RULES.— 

(A) POSSESSION OF THE UNITED STATES.—For purposes of 

this subsection, the term ‘‘possession of the United States’’ 

includes the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands. 

(B) MIRROR CODE TAX SYSTEM.—For purposes of this subsection, the term ‘‘mirror code tax system’’ means, with respect to any possession of the United States, the income 

tax system of such possession if the income tax liability of 

the residents of such possession under such system is determined by reference to the income tax laws of the United 

States as if such possession were the United States. 

(C) TREATMENT OF PAYMENTS.—For purposes of section 

1324(b)(2) of title 31, United States Code, rules similar to 

the rules of section 1001(b)(3)(C) of the American Recovery 

and Reinvestment Tax Act of 2009 shall apply. 

(3) In section 301 of the matter proposed to be inserted by 

the pending Senate amendment— 

(A) In section 6431(f)(1) of the Internal Revenue Code of 

1986, as proposed to be added by subsection (a) of such 

section 301, strike subparagraph (C) and insert the following new subparagraph: 

‘‘(C) the amount of the payment determined under subsection (b) with respect to any interest payment due under 

such bond shall be equal to the lesser of— 

‘‘(i) the amount of interest payable under such bond 

on such date, or 

‘‘(ii) the amount of interest which would have been 

payable under such bond on such date if such interest 

were determined at the applicable credit rate determined under section 54A(b)(3),’’. 

(B) In section 6431(f) of the Internal Revenue Code of 

1986, as proposed to be added by subsection (a) of such 

section 301, strike paragraph (2) and insert the following 

new paragraphs: 

‘‘(2) SPECIAL RULE FOR NEW CLEAN RENEWABLE ENERGY

BONDS AND QUALIFIED ENERGY CONSERVATION BONDS.—In the 

case of any specified tax credit bond described in clause (i) or 

(ii) of paragraph (3)(A), the amount determined under paragraph (1)(C)(ii) shall be 70 percent of the amount so deterVerDate Nov 24 2008 03:58 Mar 05, 2010 Jkt 089008 PO 00000 Frm 00005 Fmt 6659 Sfmt 6602 E:\HR\OC\HR426.XXX HR426

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mined without regard to this paragraph and sections 54C(b) 

and 54D(b). 

‘‘(3) SPECIFIED TAX CREDIT BOND.—For purposes of this subsection, the term ‘‘specified tax credit bond’’ means any qualified tax credit bond (as defined in section 54A(d)) if— 

‘‘(A) such bond is— 

‘‘(i) a new clean renewable energy bond (as defined 

in section 54C), 

‘‘(ii) a qualified energy conservation bond (as defined 

in section 54D), 

‘‘(iii) a qualified zone academy bond (as defined in 

section 54E), or 

‘‘(iv) a qualified school construction bond (as defined 

in section 54F), and 

‘‘(B) the issuer of such bond makes an irrevocable election to have this subsection apply.’’. 

(4) At the end title IV of the matter proposed to be inserted 

by the pending Senate amendment, add the following: 

Subtitle E—Disadvantaged Business 

Enterprises 

SEC. 451. DISADVANTAGED BUSINESS ENTERPRISES. 

(a) DEFINITIONS.—In this section, the following definitions apply: 

(1) SMALL BUSINESS CONCERN.— The term ‘‘small business 

concern’’ has the meaning that term has under section 3 of the 

Small Business Act (15 U.S.C. 632), except that the term shall 

not include any concern or group of concerns controlled by the 

same socially and economically disadvantaged individual or individuals which has average annual gross receipts over the 

preceding 3 fiscal years in excess of $22,410,000, as adjusted 

annually by the Secretary of Transportation for inflation. 

(2) SOCIALLY AND ECONOMICALLY DISADVANTAGED INDIVID- UALS.—The term ‘‘socially and economically disadvantaged individuals’’ has the meaning that term has under section 8(d) 

of the Small Business Act (15 U.S.C. 637(d)) and relevant subcontracting regulations issued pursuant to that Act, except 

that women shall be presumed to be socially and economically 

disadvantaged individuals for purposes of this section. 

(b) GENERAL RULE.—Except to the extent that the Secretary of 

Transportation determines otherwise, not less than 10 percent of 

the amounts made available for any program under titles I, III, 

and V of SAFETEA–LU (Public Law 109–59), subtitles A and C of 

this title, and section 403 of title 23, United States Code, shall be 

expended through small business concerns owned and controlled by 

socially and economically disadvantaged individuals. 

(c) ANNUAL LISTING OF DISADVANTAGED BUSINESS ENTER- PRISES.—Each State shall annually— 

(1) survey and compile a list of the small business concerns 

referred to in subsection (a) and the location of the concerns in 

the State; and 

(2) notify the Secretary of Transportation, in writing, of the 

percentage of the concerns that are controlled by women, by socially and economically disadvantaged individuals (other than 


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women), and by individuals who are women and are otherwise 

socially and economically disadvantaged individuals. 

(d) UNIFORM CERTIFICATION.—The Secretary of Transportation 

shall establish minimum uniform criteria for State governments to 

use in certifying whether a concern qualifies for purposes of this 

section. The minimum uniform criteria shall include, but not be 

limited to, on-site visits, personal interviews, licenses, analysis of 

stock ownership, listing of equipment, analysis of bonding capacity, 

listing of work completed, resume of principal owners, financial capacity, and type of work preferred. 

(e) COMPLIANCE WITH COURT ORDERS.—Nothing in this section 

limits the eligibility of an entity or person to receive funds made 

available under titles I, III, and V of SAFETEA–LU (Public Law 

109–59), subtitles A and C of this title, and section 403 of title 23, 

United States Code, if the entity or person is prevented, in whole 

or in part, from complying with subsection (b) because a Federal 

court issues a final order in which the court finds that the requirement of subsection (b), or the program established under subsection 

(b), is unconstitutional. 

(5) In section 551(a) of the matter proposed to be inserted by 

the pending Senate amendment, strike ‘‘December 31, 2019’’ 

and insert ‘‘December 31, 2020’’. 

(6) At the end of title V of the matter proposed to be inserted 

by the pending Senate amendment, add the following new subtitle: 

Subtitle C—Budgetary Provisions 

SEC. 561. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES. 

Notwithstanding section 6655 of the Internal Revenue Code of 

1986, in the case of a corporation with assets of not less than 

$1,000,000,000 (determined as of the end of the preceding taxable 

year)— 

(1) 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 23 percentage 

points, 

(2) the amount of any required installment of corporate estimated tax which is otherwise due in July, August, or September of 2015 shall be 121.5 percent of such amount, 

(3) the amount of any required installment of corporate estimated tax which is otherwise due in July, August, or September of 2019 shall be 106.5 percent of such amount, and 

(4) the amount of the next required installment after an installment referred to in paragraph (2) or (3) shall be appropriately reduced to reflect the amount of the increase by reason 

of such paragraph. 

SEC. 562. PAYGO COMPLIANCE. 

The budgetary effects of this Act, for purposes 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 Chairman of the House and Senate Budget Committees, provided that such statement has been 


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submitted prior to the vote on passage in the House acting first on 

this conference report or amendments between the Houses. 

Æ 


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