IIB 

111TH CONGRESS 

2D SESSION H. R. 4849 

IN THE SENATE OF THE UNITED STATES 

MARCH 25, 2010 

Received 

MARCH 26 (legislative day, MARCH 25), 2010 

Read twice and referred to the Committee on Finance 

AN ACT 

To amend the Internal Revenue Code of 1986 to provide 

tax incentives for small business job creation, extend 

the Build America Bonds program, provide other infrastructure job creation tax incentives, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE; ETC. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Small Business and Infrastructure Jobs Tax Act of 

4 2010’’. 

5 (b) AMENDMENT OF 1986 CODE.—Except as other6 wise expressly provided, whenever in this Act an amend7 ment or repeal is expressed in terms of an amendment 

8 to, or repeal of, a section or other provision, the reference 

9 shall be considered to be made to a section or other provi10 sion of the Internal Revenue Code of 1986. 

11 (c) TABLE OF CONTENTS.—The table of contents for 

12 this Act is as follows: 

Sec. 1. Short title; etc. 

TITLE I—SMALL BUSINESS TAX INCENTIVES 

Subtitle A—General Provisions 

Sec. 101. Temporary exclusion of 100 percent of gain on certain small business 

stock. 

Subtitle B—Limitations and Reporting on Certain Penalties 

Sec. 111. Limitation on penalty for failure to disclose certain information. 

Sec. 112. Annual reports on penalties and certain other enforcement actions. 

Subtitle C—Other Provisions 

Sec. 121. Nonrecourse small business investment company loans from the Small 

Business Administration treated as amounts at risk. 

Sec. 122. Increase in amount allowed as deduction for start-up expenditures. 

TITLE II—INFRASTRUCTURE INCENTIVES 

Sec. 201. Extension of Build America Bonds. 

Sec. 202. Exempt-facility bonds for sewage and water supply facilities. 

Sec. 203. Extension of exemption from alternative minimum tax treatment for 

certain tax-exempt bonds. 

Sec. 204. Elective payments in lieu of low income housing credits. 

Sec. 205. Extension and additional allocations of recovery zone bond authority. 

Sec. 206. Allowance of new markets tax credit against alternative minimum 

tax. 

TITLE III—REVENUE PROVISIONS 


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Sec. 301. Limitation on treaty benefits for certain deductible payments. 

Sec. 302. Treatment of securities of a controlled corporation exchanged for assets in certain reorganizations. 

Sec. 303. Repeal of special rules for interest and dividends received from persons meeting the 80-percent foreign business requirements. 

Sec. 304. Information reporting for rental property expense payments. 

Sec. 305. Application of levy to payments to Federal vendors relating to property. 

Sec. 306. Application of continuous levy to tax liabilities of certain Federal contractors. 

Sec. 307. Required minimum 10-year term, etc., for grantor retained annuity 

trusts. 

Sec. 308. Increase in information return penalties. 

Sec. 309. Crude tall oil ineligible for cellulosic biofuel producer credit. 

Sec. 310. Time for payment of corporate estimated taxes. 

TITLE IV—EXTENSION OF EMERGENCY CONTINGENCY FUND 

FOR STATE TEMPORARY ASSISTANCE FOR NEEDY FAMILIES 

PROGRAMS 

Sec. 401. One-year extension of the Emergency Contingency Fund for State 

Temporary Assistance for Needy Families Programs. 

1 TITLE I—SMALL BUSINESS TAX 

2 INCENTIVES 

3 Subtitle A—General Provisions 

4 SEC. 101. TEMPORARY EXCLUSION OF 100 PERCENT OF 

5 GAIN ON CERTAIN SMALL BUSINESS STOCK. 

6 (a) IN GENERAL.—Subsection (a) of section 1202 is 

7 amended by adding at the end the following new para8 graph: 

9 ‘‘(4) SPECIAL 100 PERCENT EXCLUSION.—In 

10 the case of qualified small business stock acquired 

11 after March 15, 2010, and before January 1, 

12 2012— 

13 ‘‘(A) paragraph (1) shall be applied by 

14 substituting ‘100 percent’ for ‘50 percent’, 

15 ‘‘(B) paragraph (2) shall not apply, and 


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1 ‘‘(C) paragraph (7) of section 57(a) shall 

2 not apply.’’. 

3 (b) CONFORMING AMENDMENTS.—Paragraph (3) of 

4 section 1202(a) is amended— 

5 (1) by striking ‘‘after the date of the enactment 

6 of this paragraph and before January 1, 2011’’ and 

7 inserting ‘‘after February 17, 2009, and before 

8 March 16, 2010’’; and 

9 (2) by striking ‘‘SPECIAL RULES FOR 2009 AND

10 2010’’ in the heading and inserting ‘‘SPECIAL 75

11 PERCENT EXCLUSION’’. 

12 (c) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to stock acquired after March 15, 

14 2010. 

15 Subtitle B—Limitations and 

16 Reporting on Certain Penalties 

17 SEC. 111. LIMITATION ON PENALTY FOR FAILURE TO DIS18 CLOSE CERTAIN INFORMATION. 

19 (a) IN GENERAL.—Subsection (b) of section 6707A 

20 is amended to read as follows: 

21 ‘‘(b) AMOUNT OF PENALTY.— 

22 ‘‘(1) IN GENERAL.—Except as otherwise pro23 vided in this subsection, the amount of the penalty 

24 under subsection (a) with respect to any reportable 

25 transaction shall be 75 percent of the decrease in 


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1 tax shown on the return as a result of such trans2 action (or which would have resulted from such 

3 transaction if such transaction were respected for 

4 Federal tax purposes). 

5 ‘‘(2) MAXIMUM PENALTY.—The amount of the 

6 penalty under subsection (a) with respect to any re7 portable transaction for any taxable year shall not 

8 exceed— 

9 ‘‘(A) in the case of a listed transaction, 

10 $200,000 ($100,000 in the case of a natural 

11 person), or 

12 ‘‘(B) in the case of any other reportable 

13 transaction, $50,000 ($10,000 in the case of a 

14 natural person). 

15 ‘‘(3) MINIMUM PENALTY.—The amount of the 

16 penalty under subsection (a) with respect to any 

17 transaction for any taxable year shall not be less 

18 than $10,000 ($5,000 in the case of a natural per19 son).’’. 

20 (b) EFFECTIVE DATE.—The amendment made by 

21 this section shall apply to penalties assessed after Decem22 ber 31, 2006. 


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1 SEC. 112. ANNUAL REPORTS ON PENALTIES AND CERTAIN 

2 OTHER ENFORCEMENT ACTIONS. 

3 (a) IN GENERAL.—The Commissioner of Internal 

4 Revenue, in consultation with the Secretary of the Treas5 ury, shall submit to the Committee on Ways and Means 

6 of the House of Representatives and the Committee on 

7 Finance of the Senate an annual report on the penalties 

8 assessed by the Internal Revenue Service during the pre9 ceding year under each of the following provisions of the 

10 Internal Revenue Code of 1986: 

11 (1) Section 6662A (relating to accuracy-related 

12 penalty on understatements with respect to report13 able transactions). 

14 (2) Section 6700(a) (relating to promoting abu15 sive tax shelters). 

16 (3) Section 6707 (relating to failure to furnish 

17 information regarding reportable transactions). 

18 (4) Section 6707A (relating to failure to include 

19 reportable transaction information with return). 

20 (5) Section 6708 (relating to failure to main21 tain lists of advisees with respect to reportable 

22 transactions). 

23 (b) ADDITIONAL INFORMATION.—The report re24 quired under subsection (a) shall also include information 

25 on the following with respect to each year: 


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1 (1) Any action taken under section 330(b) of 

2 title 31, United States Code, with respect to any re3 portable transaction (as defined in section 6707A(c) 

4 of the Internal Revenue Code of 1986). 

5 (2) Any extension of the time for assessment of 

6 tax enforced, or assessment of any amount under 

7 such an extension, under paragraph (10) of section 

8 6501(c) of the Internal Revenue Code of 1986. 

9 (c) DATE OF REPORT.—The first report required 

10 under subsection (a) shall be submitted not later than De11 cember 31, 2010. 

12 Subtitle C—Other Provisions 

13 SEC. 121. NONRECOURSE SMALL BUSINESS INVESTMENT 

14 COMPANY LOANS FROM THE SMALL BUSI15 NESS ADMINISTRATION TREATED AS 

16 AMOUNTS AT RISK. 

17 (a) IN GENERAL.—Subparagraph (B) of section 

18 465(b)(6) is amended to read as follows: 

19 ‘‘(B) QUALIFIED NONRECOURSE FINANC20 ING.—For purposes of this paragraph— 

21 ‘‘(i) IN GENERAL.—The term ‘quali22 fied nonrecourse financing’ means any fi23 nancing— 


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1 ‘‘(I) which is qualified real prop2 erty financing or qualified SBIC fi3 nancing, 

4 ‘‘(II) except to the extent pro5 vided in regulations, with respect to 

6 which no person is personally liable 

7 for repayment, and 

8 ‘‘(III) which is not convertible 

9 debt. 

10 ‘‘(ii) QUALIFIED REAL PROPERTY FI11 NANCING.—The term ‘qualified real prop12 erty financing’ means any financing 

13 which— 

14 ‘‘(I) is borrowed by the taxpayer 

15 with respect to the activity of holding 

16 real property, 

17 ‘‘(II) is secured by real property 

18 used in such activity, and 

19 ‘‘(III) is borrowed by the tax20 payer from a qualified person or rep21 resents a loan from any Federal, 

22 State, or local government or instru23 mentality thereof, or is guaranteed by 

24 any Federal, State, or local govern25 ment. 


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1 ‘‘(iii) QUALIFIED SBIC FINANCING.— 

2 The term ‘qualified SBIC financing’ means 

3 any financing which— 

4 ‘‘(I) is borrowed by a small busi5 ness investment company (within the 

6 meaning of section 301 of the Small 

7 Business Investment Act of 1958), 

8 and 

9 ‘‘(II) is borrowed from, or guar10 anteed by, the Small Business Admin11 istration under the authority of sec12 tion 303(b) of such Act.’’. 

13 (b) CONFORMING AMENDMENTS.—Subparagraph (A) 

14 of section 465(b)(6) is amended— 

15 (1) by striking ‘‘in the case of an activity of 

16 holding real property,’’; and 

17 (2) by striking ‘‘which is secured by real prop18 erty used in such activity’’. 

19 (c) EFFECTIVE DATE.—The amendments made by 

20 this section shall apply to loans and guarantees made after 

21 the date of the enactment of this Act. 


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1 SEC. 122. INCREASE IN AMOUNT ALLOWED AS DEDUCTION 

2 FOR START-UP EXPENDITURES. 

3 (a) IN GENERAL.—Subsection (b) of section 195 is 

4 amended by adding at the end the following new para5 graph: 

6 ‘‘(3) INCREASED LIMITATION FOR TAXABLE

7 YEARS BEGINNING IN 2010 OR 2011.—In the case of 

8 any taxable year beginning in 2010 or 2011, para9 graph (1)(A)(ii) shall be applied— 

10 ‘‘(A) by substituting ‘$20,000’ for 

11 ‘$5,000’, and 

12 ‘‘(B) by substituting ‘$75,000’ for 

13 ‘$50,000’.’’. 

14 (b) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to taxable years beginning after 

16 December 31, 2009. 

17 TITLE II—INFRASTRUCTURE 

18 INCENTIVES 

19 SEC. 201. EXTENSION OF BUILD AMERICA BONDS. 

20 (a) IN GENERAL.—Subparagraph (B) of section 

21 54AA(d)(1) is amended by striking ‘‘January 1, 2011’’ 

22 and inserting ‘‘April 1, 2013’’. 

23 (b) EXTENSION OF PAYMENTS TO ISSUERS.— 

24 (1) IN GENERAL.—Subsection (a) of section 

25 6431 is amended by striking ‘‘January 1, 2011’’ and 

26 inserting ‘‘April 1, 2013’’. 


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1 (2) CONFORMING AMENDMENTS.—Subsection 

2 (g) of section 54AA is amended— 

3 (A) by striking ‘‘January 1, 2011’’ and in4 serting ‘‘April 1, 2013’’; and 

5 (B) by striking ‘‘QUALIFIED BONDS

6 ISSUED BEFORE 2011’’ in the heading and in7 serting ‘‘CERTAIN QUALIFIED BONDS’’. 

8 (c) REDUCTION IN PERCENTAGE OF PAYMENTS TO

9 ISSUERS.—Subsection (b) of section 6431 is amended— 

10 (1) by striking ‘‘The Secretary’’ and inserting 

11 the following: 

12 ‘‘(1) IN GENERAL.—The Secretary’’; 

13 (2) by striking ‘‘35 percent’’ and inserting ‘‘the 

14 applicable percentage’’; and 

15 (3) by adding at the end the following new 

16 paragraph: 

17 ‘‘(2) APPLICABLE PERCENTAGE.—For purposes 

18 of this subsection, the term ‘applicable percentage’ 

19 means the percentage determined in accordance with 

20 the following table: 

‘‘In the case of a qualified bond issued during calendar year: The applicable percentage 

is: 

2009 or 2010 ............................................................ 35 percent 

2011 .......................................................................... 33 percent 

2012 .......................................................................... 31 percent 

2013 .......................................................................... 30 percent’’. 


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1 (d) CURRENT REFUNDINGS PERMITTED.—Sub2 section (g) of section 54AA is amended by adding at the 

3 end the following new paragraph: 

4 ‘‘(3) TREATMENT OF CURRENT REFUNDING

5 BONDS.— 

6 ‘‘(A) IN GENERAL.—For purposes of this 

7 subsection, the term ‘qualified build America 

8 bond’ includes any bond (or series of bonds) 

9 issued to refund a qualified build America bond 

10 if— 

11 ‘‘(i) the average maturity date of the 

12 issue of which the refunding bond is a part 

13 is not later than the average maturity date 

14 of the bonds to be refunded by such issue, 

15 ‘‘(ii) the amount of the refunding 

16 bond does not exceed the outstanding 

17 amount of the refunded bond, and 

18 ‘‘(iii) the refunded bond is redeemed 

19 not later than 90 days after the date of the 

20 issuance of the refunding bond. 

21 ‘‘(B) APPLICABLE PERCENTAGE.—In the 

22 case of a refunding bond referred to in subpara23 graph (A), the applicable percentage with re24 spect to such bond under section 6431(b) shall 


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1 be the lowest percentage specified in paragraph 

2 (2) of such section. 

3 ‘‘(C) DETERMINATION OF AVERAGE MATU4 RITY.—For purposes of subparagraph (A)(i), 

5 average maturity shall be determined in accord6 ance with section 147(b)(2)(A).’’. 

7 (e) CLARIFICATION RELATED TO LEVEES AND

8 FLOOD CONTROL PROJECTS.—Subparagraph (A) of sec9 tion 54AA(g)(2) is amended by inserting ‘‘(including cap10 ital expenditures for levees and other flood control 

11 projects)’’ after ‘‘capital expenditures’’. 

12 SEC. 202. EXEMPT-FACILITY BONDS FOR SEWAGE AND 

13 WATER SUPPLY FACILITIES. 

14 (a) BONDS FOR WATER AND SEWAGE FACILITIES

15 EXEMPT FROM VOLUME CAP ON PRIVATE ACTIVITY

16 BONDS.— 

17 (1) IN GENERAL.—Paragraph (3) of section 

18 146(g) is amended by inserting ‘‘(4), (5),’’ after 

19 ‘‘(2),’’. 

20 (2) CONFORMING AMENDMENT.—Paragraphs 

21 (2) and (3)(B) of section 146(k) are both amended 

22 by striking ‘‘(4), (5), (6),’’ and inserting ‘‘(6)’’. 

23 (b) TAX-EXEMPT ISSUANCE BY INDIAN TRIBAL GOV24 ERNMENTS.— 


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1 (1) IN GENERAL.—Subsection (c) of section 

2 7871 is amended by adding at the end the following 

3 new paragraph: 

4 ‘‘(4) EXCEPTION FOR BONDS FOR WATER AND

5 SEWAGE FACILITIES.—Paragraph (2) shall not apply 

6 to an exempt facility bond 95 percent or more of the 

7 net proceeds (as defined in section 150(a)(3)) of 

8 which are to be used to provide facilities described 

9 in paragraph (4) or (5) of section 142(a).’’. 

10 (2) CONFORMING AMENDMENT.—Paragraph (2) 

11 of section 7871(c) is amended by striking ‘‘para12 graph (3)’’ and inserting ‘‘paragraphs (3) and (4)’’. 

13 (c) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to obligations issued after the date 

15 of the enactment of this Act. 

16 SEC. 203. EXTENSION OF EXEMPTION FROM ALTERNATIVE 

17 MINIMUM TAX TREATMENT FOR CERTAIN 

18 TAX-EXEMPT BONDS. 

19 (a) IN GENERAL.—Clause (vi) of section 57(a)(5)(C) 

20 is amended— 

21 (1) by striking ‘‘January 1, 2011’’ in subclause 

22 (I) and inserting ‘‘January 1, 2012’’; and 

23 (2) by striking ‘‘AND 2010’’ in the heading and 

24 inserting ‘‘, 2010, AND 2011’’. 


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1 (b) ADJUSTED CURRENT EARNINGS.—Clause (iv) of 

2 section 56(g)(4)(B) is amended— 

3 (1) by striking ‘‘January 1, 2011’’ in subclause 

4 (I) and inserting ‘‘January 1, 2012’’; and 

5 (2) by striking ‘‘AND 2010’’ in the heading and 

6 inserting ‘‘, 2010, AND 2011’’. 

7 (c) EFFECTIVE DATE.—The amendments made by 

8 this section shall apply to obligations issued after Decem9 ber 31, 2010. 

10 SEC. 204. ELECTIVE PAYMENTS IN LIEU OF LOW INCOME 

11 HOUSING CREDITS. 

12 (a) IN GENERAL.—Chapter 65 (relating to abate13 ments, credits, and refunds) is amended by adding at the 

14 end the following new subchapter: 

15 ‘‘Subchapter C—Direct Payment Provisions 

‘‘Sec. 6451. Elective payments in lieu of low income housing credit for bondfinanced buildings. 

16 ‘‘SEC. 6451. ELECTIVE PAYMENTS IN LIEU OF LOW INCOME 

17 HOUSING CREDIT FOR BOND-FINANCED 

18 BUILDINGS. 

19 ‘‘(a) IN GENERAL.—Any person making an election 

20 under this section with respect to any qualified bond-fi21 nanced low-income building originally placed in service by 

22 such person during the taxable year shall be treated as 

23 making a payment, against the tax imposed by subtitle 

24 A for the taxable year, equal to the direct payment amount 


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1 with respect to such building. Such payment shall be treat2 ed as made on the later of the due date of the return of 

3 such tax or the date on which such return is filed. 

4 ‘‘(b) QUALIFIED BOND-FINANCED LOW-INCOME

5 BUILDING.—For purposes of this section, the term ‘quali6 fied bond-financed low-income building’ means any quali7 fied low-income building to which paragraph (1) of section 

8 42(h) does not apply by reason of paragraph (4)(B) of 

9 such section. 

10 ‘‘(c) DIRECT PAYMENT AMOUNT.—For purposes of 

11 this section, the term ‘direct payment amount’ means, 

12 with respect to any building, 25.5 percent of the qualified 

13 basis of such building. 

14 ‘‘(d) SPECIAL RULES FOR CERTAIN NON-TAX15 PAYERS.— 

16 ‘‘(1) DENIAL OF PAYMENT.—Subsection (a) 

17 shall not apply with respect to any building placed 

18 in service by— 

19 ‘‘(A) any governmental entity, or 

20 ‘‘(B) any organization described in section 

21 501(c) or 401(a) and exempt from tax under 

22 section 501(a). 

23 ‘‘(2) SPECIAL RULES FOR PARTNERSHIPS AND

24 S CORPORATIONS.—In the case of property originally 


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1 placed in service by a partnership or an S corpora2 tion— 

3 ‘‘(A) the election under subsection (a) may 

4 be made only by such partnership or S corpora5 tion, 

6 ‘‘(B) such partnership or S corporation 

7 shall be treated as making the payment referred 

8 to in subsection (a) only to the extent of the 

9 proportionate share of such partnership or S 

10 corporation as is owned by persons who would 

11 be treated as making such payment if the build12 ing were placed in service by such persons, and 

13 ‘‘(C) the return required to be made by 

14 such partnership or S corporation under section 

15 6031 or 6037 (as the case may be) shall be 

16 treated as a return of tax for purposes of sub17 section (a). 

18 For purposes of subparagraph (B), rules similar to the 

19 rules of section 168(h)(6) (other than subparagraph (F) 

20 thereof) shall apply. 

21 ‘‘(e) COORDINATION WITH LOW INCOME HOUSING

22 CREDIT.—In the case of any property with respect to 

23 which an election is made under this section, no credit 

24 shall be determined under section 42 with respect to such 

25 building for any taxable year. 


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1 ‘‘(f) OTHER DEFINITIONS AND SPECIAL RULES.— 

2 For purposes of this section— 

3 ‘‘(1) OTHER DEFINITIONS.—Terms used in this 

4 section which are also used in section 42 shall have 

5 the same meaning for purposes of this section as 

6 when used in such section. 

7 ‘‘(2) APPLICATION OF RECAPTURE RULES, 

8 ETC.—Except as otherwise provided by the Sec9 retary, rules similar to the rules of section 42 shall 

10 apply, including the recapture rules of section 42(j). 

11 ‘‘(3) PROVISION OF INFORMATION.—A person 

12 shall not be treated as having elected the application 

13 of this section unless the taxpayer provides such in14 formation as the Secretary may require for purposes 

15 of verifying the proper amount to be treated as a 

16 payment under subsection (a) and evaluating the ef17 fectiveness of this section. 

18 ‘‘(4) EXCLUSION FROM GROSS INCOME.—Any 

19 credit or refund allowed or made by reason of this 

20 section shall not be includible in gross income or al21 ternative minimum taxable income. 

22 ‘‘(g) TERMINATION.—Subsection (a) shall not apply 

23 with respect to any building placed in service during a tax24 able year beginning after December 31, 2010.’’. 

25 (b) CONFORMING AMENDMENTS.— 


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1 (1) Subparagraph (A) of section 6211(b)(4) is 

2 amended by inserting ‘‘and subchapter C of chapter 

3 65 (including any payment treated as made under 

4 such subchapter)’’ after ‘‘6431’’. 

5 (2) Subparagraph (B) of section 6425(c)(1) is 

6 amended— 

7 (A) by striking ‘‘the credits’’ and inserting 

8 ‘‘the sum of— 

9 ‘‘(i) the credits’’; 

10 (B) by striking the period at the end of 

11 clause (i) thereof (as amended by this para12 graph) and inserting ‘‘, plus’’; and 

13 (C) by adding at the end the following new 

14 clause: 

15 ‘‘(ii) the credits allowed (and pay16 ments treated as made) under subchapter 

17 C.’’. 

18 (3) Paragraph (3) of section 6654(f) is amend19 ed— 

20 (A) by striking ‘‘the credits’’ and inserting 

21 ‘‘the sum of— 

22 ‘‘(A) the credits’’; 

23 (B) by striking the period at the end of 

24 subparagraph (A) thereof (as amended by this 

25 paragraph) and inserting ‘‘, and’’; and 


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1 (C) by adding at the end the following new 

2 subparagraph: 

3 ‘‘(B) the credits allowed (and payments 

4 treated as made) under subchapter C of chapter 

5 65.’’. 

6 (4) Subparagraph (B) of section 6655(g)(1) is 

7 amended— 

8 (A) by striking ‘‘the credits’’ and inserting 

9 ‘‘the sum of— 

10 ‘‘(i) the credits’’; 

11 (B) by striking the period at the end of 

12 clause (i) thereof (as amended by this para13 graph) and inserting ‘‘, plus’’; and 

14 (C) by adding at the end the following new 

15 clause: 

16 ‘‘(ii) the credits allowed (and pay17 ments treated as made) under subchapter 

18 C of chapter 65.’’. 

19 (5) Paragraph (2) of section 1324(b) of title 

20 31, United States Code, is amended by inserting ‘‘, 

21 or from the provisions of subchapter C of chapter 65 

22 of such Code’’ before the period at the end. 

23 (6) The table of subchapters for chapter 65 is 

24 amended by adding at the end the following new 

25 item: 

SUBCHAPTER C. DIRECT PAYMENT PROVISIONS


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1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to buildings placed in service after 

3 the date of the enactment of this Act. 

4 SEC. 205. EXTENSION AND ADDITIONAL ALLOCATIONS OF 

5 RECOVERY ZONE BOND AUTHORITY. 

6 (a) EXTENSION OF RECOVERY ZONE BOND AUTHOR7 ITY.—Section 1400U–2(b)(1) and section 1400U– 

8 3(b)(1)(B) are each amended by striking ‘‘January 1, 

9 2011’’ and inserting ‘‘January 1, 2012’’. 

10 (b) ADDITIONAL ALLOCATIONS OF RECOVERY ZONE

11 BOND AUTHORITY BASED ON UNEMPLOYMENT.—Section 

12 1400U–1 is amended by adding at the end the following 

13 new subsection: 

14 ‘‘(c) ALLOCATION OF 2010 RECOVERY ZONE BOND

15 LIMITATIONS BASED ON UNEMPLOYMENT.— 

16 ‘‘(1) IN GENERAL.—The Secretary shall allo17 cate the 2010 national recovery zone economic devel18 opment bond limitation and the 2010 national recov19 ery zone facility bond limitation among the States in 

20 the proportion that each such State’s 2009 unem21 ployment number bears to the aggregate of the 2009 

22 unemployment numbers for all of the States. 

23 ‘‘(2) MINIMUM ALLOCATION.—The Secretary 

24 shall adjust the allocations under paragraph (1) for 

25 each State to the extent necessary to ensure that no 


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1 State (prior to any reduction under paragraph (3)) 

2 receives less than 0.9 percent of the 2010 national 

3 recovery zone economic development bond limitation 

4 and 0.9 percent of the 2010 national recovery zone 

5 facility bond limitation. 

6 ‘‘(3) ALLOCATIONS BY STATES.— 

7 ‘‘(A) IN GENERAL.—Each State with re8 spect to which an allocation is made under 

9 paragraph (1) shall reallocate such allocation 

10 among the counties and large municipalities (as 

11 defined in subsection (a)(3)(B)) in such State 

12 in the proportion that each such county’s or 

13 municipality’s 2009 unemployment number 

14 bears to the aggregate of the 2009 unemploy15 ment numbers for all the counties and large 

16 municipalities (as so defined) in such State. 

17 ‘‘(B) 2010 ALLOCATION REDUCED BY

18 AMOUNT OF PREVIOUS ALLOCATION.—Each 

19 State shall reduce (but not below zero)— 

20 ‘‘(i) the amount of the 2010 national 

21 recovery zone economic development bond 

22 limitation allocated to each county or large 

23 municipality (as so defined) in such State 

24 by the amount of the national recovery 

25 zone economic development bond limitation 


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1 allocated to such county or large munici2 pality under subsection (a)(3)(A) (deter3 mined without regard to any waiver there4 of), and 

5 ‘‘(ii) the amount of the 2010 national 

6 recovery zone facility bond limitation allo7 cated to each county or large municipality 

8 (as so defined) in such State by the 

9 amount of the national recovery zone facil10 ity bond limitation allocated to such county 

11 or large municipality under subsection 

12 (a)(3)(A) (determined without regard to 

13 any waiver thereof). 

14 ‘‘(C) WAIVER OF SUBALLOCATIONS.—A 

15 county or municipality may waive any portion 

16 of an allocation made under this paragraph. A 

17 State may by law treat a county or municipality 

18 as waiving any portion of an allocation made 

19 under this paragraph if there is a reasonable 

20 expectation that such allocation would not oth21 erwise be used. 

22 ‘‘(D) SPECIAL RULE FOR A MUNICIPALITY

23 IN A COUNTY.—In the case of any large munici24 pality any portion of which is in a county, such 


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1 portion shall be treated as part of such munici2 pality and not part of such county. 

3 ‘‘(4) 2009 UNEMPLOYMENT NUMBER.—For 

4 purposes of this subsection, the term ‘2009 unem5 ployment number’ means, with respect to any State, 

6 county or municipality, the number of individuals in 

7 such State, county, or municipality who were deter8 mined to be unemployed by the Bureau of Labor 

9 Statistics for December 2009. 

10 ‘‘(5) 2010 NATIONAL LIMITATIONS.— 

11 ‘‘(A) RECOVERY ZONE ECONOMIC DEVEL12 OPMENT BONDS.—The 2010 national recovery 

13 zone economic development bond limitation is 

14 $10,000,000,000. Any allocation of such limita15 tion under this subsection shall be treated for 

16 purposes of section 1400U–2 in the same man17 ner as an allocation of national recovery zone 

18 economic development bond limitation. 

19 ‘‘(B) RECOVERY ZONE FACILITY BONDS.— 

20 The 2010 national recovery zone facility bond 

21 limitation is $15,000,000,000. Any allocation of 

22 such limitation under this subsection shall be 

23 treated for purposes of section 1400U–3 in the 

24 same manner as an allocation of national recov25 ery zone facility bond limitation.’’. 


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1 (c) AUTHORITY OF STATE TO WAIVE CERTAIN 2009 

2 ALLOCATIONS.—Subparagraph (A) of section 1400U– 

3 1(a)(3) is amended by adding at the end the following: 

4 ‘‘A State may by law treat a county or municipality as 

5 waiving any portion of an allocation made under this sub6 paragraph if there is a reasonable expectation that such 

7 allocation would not otherwise be used.’’. 

8 SEC. 206. ALLOWANCE OF NEW MARKETS TAX CREDIT 

9 AGAINST ALTERNATIVE MINIMUM TAX. 

10 (a) IN GENERAL.—Subparagraph (B) of section 

11 38(c)(4) is amended by redesignating clauses (v) through 

12 (viii) as clauses (vi) through (ix), respectively, and by in13 serting after clause (iv) the following new clause: 

14 ‘‘(v) the credit determined under sec15 tion 45D, but only with respect to credits 

16 determined with respect to qualified equity 

17 investments (as defined in section 45D(b)) 

18 initially made before January 1, 2012,’’. 

19 (b) EFFECTIVE DATE.—The amendments made by 

20 this section shall apply to qualified equity investments (as 

21 defined in section 45D(b) of the Internal Revenue Code 

22 of 1986) initially made after March 15, 2010. 


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1 TITLE III—REVENUE 

2 PROVISIONS 

3 SEC. 301. LIMITATION ON TREATY BENEFITS FOR CERTAIN 

4 DEDUCTIBLE PAYMENTS. 

5 (a) IN GENERAL.—Section 894 (relating to income 

6 affected by treaty) is amended by adding at the end the 

7 following new subsection: 

8 ‘‘(d) LIMITATION ON TREATY BENEFITS FOR CER9 TAIN DEDUCTIBLE PAYMENTS.— 

10 ‘‘(1) IN GENERAL.—In the case of any deduct11 ible related-party payment, any withholding tax im12 posed under chapter 3 (and any tax imposed under 

13 subpart A or B of this part) with respect to such 

14 payment may not be reduced under any treaty of the 

15 United States unless any such withholding tax would 

16 be reduced under a treaty of the United States if 

17 such payment were made directly to the foreign par18 ent corporation. 

19 ‘‘(2) DEDUCTIBLE RELATED-PARTY PAY20 MENT.—For purposes of this subsection, the term 

21 ‘deductible related-party payment’ means any pay22 ment made, directly or indirectly, by any person to 

23 any other person if the payment is allowable as a de24 duction under this chapter and both persons are 


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1 members of the same foreign controlled group of en2 tities. 

3 ‘‘(3) FOREIGN CONTROLLED GROUP OF ENTI4 TIES.—For purposes of this subsection— 

5 ‘‘(A) IN GENERAL.—The term ‘foreign 

6 controlled group of entities’ means a controlled 

7 group of entities the common parent of which 

8 is a foreign corporation. 

9 ‘‘(B) CONTROLLED GROUP OF ENTITIES.— 

10 The term ‘controlled group of entities’ means a 

11 controlled group of corporations as defined in 

12 section 1563(a)(1), except that— 

13 ‘‘(i) ‘more than 50 percent’ shall be 

14 substituted for ‘at least 80 percent’ each 

15 place it appears therein, and 

16 ‘‘(ii) the determination shall be made 

17 without regard to subsections (a)(4) and 

18 (b)(2) of section 1563. 

19 A partnership or any other entity (other than a 

20 corporation) shall be treated as a member of a 

21 controlled group of entities if such entity is con22 trolled (within the meaning of section 

23 954(d)(3)) by members of such group (includ24 ing any entity treated as a member of such 

25 group by reason of this sentence). 


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1 ‘‘(4) FOREIGN PARENT CORPORATION.—For 

2 purposes of this subsection, the term ‘foreign parent 

3 corporation’ means, with respect to any deductible 

4 related-party payment, the common parent of the 

5 foreign controlled group of entities referred to in 

6 paragraph (3)(A). 

7 ‘‘(5) REGULATIONS.—The Secretary may pre8 scribe such regulations or other guidance as are nec9 essary or appropriate to carry out the purposes of 

10 this subsection, including regulations or other guid11 ance which provide for— 

12 ‘‘(A) the treatment of two or more persons 

13 as members of a foreign controlled group of en14 tities if such persons would be the common par15 ent of such group if treated as one corporation, 

16 and 

17 ‘‘(B) the treatment of any member of a 

18 foreign controlled group of entities as the com19 mon parent of such group if such treatment is 

20 appropriate taking into account the economic 

21 relationships among such entities.’’. 

22 (b) EFFECTIVE DATE.—The amendment made by 

23 this section shall apply to payments made after the date 

24 of the enactment of this Act. 


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1 SEC. 302. TREATMENT OF SECURITIES OF A CONTROLLED 

2 CORPORATION EXCHANGED FOR ASSETS IN 

3 CERTAIN REORGANIZATIONS. 

4 (a) IN GENERAL.—Section 361 (relating to non5 recognition of gain or loss to corporations; treatment of 

6 distributions) is amended by adding at the end the fol7 lowing new subsection: 

8 ‘‘(d) SPECIAL RULES FOR TRANSACTIONS INVOLVING

9 SECTION 355 DISTRIBUTIONS.—In the case of a reorga10 nization described in section 368(a)(1)(D) with respect to 

11 which stock or securities of the corporation to which the 

12 assets are transferred are distributed in a transaction 

13 which qualifies under section 355— 

14 ‘‘(1) this section shall be applied by substituting 

15 ‘stock other than nonqualified preferred stock (as 

16 defined in section 351(g)(2))’ for ‘stock or securities’ 

17 in subsections (a) and (b)(1), and 

18 ‘‘(2) the first sentence of subsection (b)(3) shall 

19 apply only to the extent that the sum of the money 

20 and the fair market value of the other property 

21 transferred to such creditors does not exceed the ad22 justed bases of such assets transferred (reduced by 

23 the amount of the liabilities assumed (within the 

24 meaning of section 357(c))).’’. 

25 (b) CONFORMING AMENDMENT.—Paragraph (3) of 

26 section 361(b) is amended by striking the last sentence. 


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1 (c) EFFECTIVE DATE.— 

2 (1) IN GENERAL.—Except as provided in para3 graph (2), the amendments made by this section 

4 shall apply to exchanges after the date of the enact5 ment of this Act. 

6 (2) TRANSITION RULE.—The amendments 

7 made by this section shall not apply to any exchange 

8 pursuant to a transaction which is— 

9 (A) made pursuant to an agreement which 

10 was binding on March 15, 2010, and at all 

11 times thereafter; 

12 (B) described in a ruling request submitted 

13 to the Internal Revenue Service on or before 

14 such date; or 

15 (C) described on or before such date in a 

16 public announcement or in a filing with the Se17 curities and Exchange Commission. 

18 SEC. 303. REPEAL OF SPECIAL RULES FOR INTEREST AND 

19 DIVIDENDS RECEIVED FROM PERSONS MEET20 ING THE 80-PERCENT FOREIGN BUSINESS RE21 QUIREMENTS. 

22 (a) REPEAL OF SPECIAL RULE TREATING INTEREST

23 AS UNITED STATES SOURCE.—Paragraph (1) of section 

24 861(a) is amended by striking subparagraph (A) and by 


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1 redesignating subparagraphs (B) and (C) as subpara2 graphs (A) and (B), respectively. 

3 (b) REPEAL OF EXCEPTION TO TAX ON DIVIDENDS

4 RECEIVED BY NONRESIDENT ALIENS.—Paragraph (2) of 

5 section 871(i) is amended by striking subparagraph (B) 

6 and by redesignating subparagraphs (C) and (D) as sub7 paragraphs (B) and (C), respectively. 

8 (c) CONFORMING AMENDMENTS.— 

9 (1) Section 861 is amended by striking sub10 section (c) and by redesignating subsections (d), (e), 

11 and (f) as subsections (c), (d), and (e), respectively. 

12 (2) Paragraph (9) of section 904(h) is amended 

13 to read as follows: 

14 ‘‘(9) TREATMENT OF CERTAIN DOMESTIC COR15 PORATIONS.—In the case of any dividend treated as 

16 not from sources with the United States under sec17 tion 861(a)(2)(A), the corporation paying such divi18 dend shall be treated for purposes of this subsection 

19 as a United States-owned foreign corporation.’’. 

20 (3) Subsection (c) of section 2104 is amended 

21 in the last sentence by striking ‘‘or to a debt obliga22 tion of a domestic corporation’’ and all that follows 

23 and inserting a period. 

24 (d) EFFECTIVE DATE.— 


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1 (1) IN GENERAL.—Except as provided in para2 graph (2), the amendments made by this section 

3 shall apply to taxable years beginning after Decem4 ber 31, 2010. 

5 (2) GRANDFATHER RULE FOR OUTSTANDING

6 DEBT OBLIGATIONS.— 

7 (A) IN GENERAL.—The amendments made 

8 by this section shall not apply to payments of 

9 interest on obligations issued before the date of 

10 the enactment of this Act. 

11 (B) EXCEPTION FOR RELATED PARTY

12 DEBT.—Subparagraph (A) shall not apply to 

13 any interest which is payable to a related per14 son (determined under rules similar to the rules 

15 of section 954(d)(3)). 

16 (C) SIGNIFICANT MODIFICATIONS TREAT17 ED AS NEW ISSUES.—For purposes of subpara18 graph (A), a significant modification of the 

19 terms of any obligation (including any extension 

20 of the term of such obligation) shall be treated 

21 as a new issue. 

22 SEC. 304. INFORMATION REPORTING FOR RENTAL PROP23 ERTY EXPENSE PAYMENTS. 

24 (a) IN GENERAL.—Section 6041 is amended by add25 ing at the end the following new subsection: 


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1 ‘‘(h) TREATMENT OF RENTAL PROPERTY EXPENSE

2 PAYMENTS.— 

3 ‘‘(1) IN GENERAL.—For purposes of subsection 

4 (a), a person receiving rental income from real es5 tate (other than a qualified residence) shall be con6 sidered to be engaged in a trade or business of rent7 ing property. 

8 ‘‘(2) QUALIFIED RESIDENCE.—For purposes of 

9 paragraph (1), the term ‘qualified residence’ 

10 means— 

11 ‘‘(A) the principal residence (within the 

12 meaning of section 121) of the taxpayer, and 

13 ‘‘(B) 1 other residence of the taxpayer 

14 which is selected by the taxpayer for purposes 

15 of this subsection for the taxable year and 

16 which is used by the taxpayer as a residence 

17 (within the meaning of section 280A(d)(1)).’’. 

18 (b) EFFECTIVE DATE.—The amendment made by 

19 this section shall apply to payments made after December 

20 31, 2010. 

21 SEC. 305. APPLICATION OF LEVY TO PAYMENTS TO FED22 ERAL VENDORS RELATING TO PROPERTY. 

23 (a) IN GENERAL.—Section 6331(h)(3) is amended by 

24 striking ‘‘goods or services’’ and inserting ‘‘property, 

25 goods, or services’’. 


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1 (b) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to levies approved after the date 

3 of the enactment of this Act. 

4 SEC. 306. APPLICATION OF CONTINUOUS LEVY TO TAX LI5 ABILITIES OF CERTAIN FEDERAL CONTRAC6 TORS. 

7 (a) IN GENERAL.—Subsection (f) of section 6330 is 

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

9 by inserting ‘‘or’’ at the end of paragraph (3), and by in10 serting after paragraph (3) the following new paragraph: 

11 ‘‘(4) the Secretary has served a Federal con12 tractor levy,’’. 

13 (b) FEDERAL CONTRACTOR LEVY.—Subsection (h) 

14 of section 6330 is amended— 

15 (1) by striking all that precedes ‘‘any levy in 

16 connection with the collection’’ and inserting the fol17 lowing: 

18 ‘‘(h) DEFINITIONS RELATED TO EXCEPTIONS.—For 

19 purposes of subsection (f)— 

20 ‘‘(1) DISQUALIFIED EMPLOYMENT TAX LEVY.— 

21 A disqualified employment tax levy is’’; and 

22 (2) by adding at the end the following new 

23 paragraph: 

24 ‘‘(2) FEDERAL CONTRACTOR LEVY.—A Federal 

25 contractor levy is any levy if the person whose propVerDate Nov 24 2008 22:20 Mar 26, 2010 Jkt 089200 PO 00000 Frm 00034 Fmt 6652 Sfmt 6201 E:\BILLS\H4849.RFS H4849

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1 erty is subject to the levy (or any predecessor there2 of) is a Federal contractor.’’. 

3 (c) CONFORMING AMENDMENT.—The heading of 

4 subsection (f) of section 6330 is amended by striking 

5 ‘‘JEOPARDY AND STATE REFUND COLLECTION’’ and in6 serting ‘‘EXCEPTIONS’’. 

7 (d) EFFECTIVE DATE.—The amendments made by 

8 this section shall apply to levies issued after December 31, 

9 2010. 

10 SEC. 307. REQUIRED MINIMUM 10-YEAR TERM, ETC., FOR 

11 GRANTOR RETAINED ANNUITY TRUSTS. 

12 (a) IN GENERAL.—Subsection (b) of section 2702 is 

13 amended— 

14 (1) by redesignating paragraphs (1), (2) and 

15 (3) as subparagraphs (A), (B), and (C), respectively, 

16 and by moving such subparagraphs (as so redesig17 nated) 2 ems to the right; 

18 (2) by striking ‘‘For purposes of’’ and inserting 

19 the following: 

20 ‘‘(1) IN GENERAL.—For purposes of’’; 

21 (3) by striking ‘‘paragraph (1) or (2)’’ in para22 graph (1)(C) (as so redesignated) and inserting 

23 ‘‘subparagraph (A) or (B)’’; and 

24 (4) by adding at the end the following new 

25 paragraph: 


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1 ‘‘(2) ADDITIONAL REQUIREMENTS WITH RE2 SPECT TO GRANTOR RETAINED ANNUITIES.—For 

3 purposes of subsection (a), in the case of an interest 

4 described in paragraph (1)(A) (determined without 

5 regard to this paragraph) which is retained by the 

6 transferor, such interest shall be treated as de7 scribed in such paragraph only if— 

8 ‘‘(A) the right to receive the fixed amounts 

9 referred to in such paragraph is for a term of 

10 not less than 10 years, 

11 ‘‘(B) such fixed amounts, when determined 

12 on an annual basis, do not decrease relative to 

13 any prior year during the first 10 years of the 

14 term referred to in subparagraph (A), and 

15 ‘‘(C) the remainder interest has a value 

16 greater than zero determined as of the time of 

17 the transfer.’’. 

18 (b) EFFECTIVE DATE.—The amendments made by 

19 this section shall apply to transfers made after the date 

20 of the enactment of this Act. 

21 SEC. 308. INCREASE IN INFORMATION RETURN PENALTIES. 

22 (a) FAILURE TO FILE CORRECT INFORMATION RE23 TURNS.— 


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1 (1) IN GENERAL.—Subsections (a)(1), 

2 (b)(1)(A), and (b)(2)(A) of section 6721 are each 

3 amended by striking ‘‘$50’’ and inserting ‘‘$100’’. 

4 (2) AGGREGATE ANNUAL LIMITATION.—Sub5 sections (a)(1), (d)(1)(A), and (e)(3)(A) of section 

6 6721 are each amended by striking ‘‘$250,000’’ and 

7 inserting ‘‘$1,500,000’’. 

8 (b) REDUCTION WHERE CORRECTION WITHIN 30 

9 DAYS.— 

10 (1) IN GENERAL.—Subparagraph (A) of section 

11 6721(b)(1) is amended by striking ‘‘$15’’ and insert12 ing ‘‘$30’’. 

13 (2) AGGREGATE ANNUAL LIMITATION.—Sub14 sections (b)(1)(B) and (d)(1)(B) of section 6721 are 

15 each amended by striking ‘‘$75,000’’ and inserting 

16 ‘‘$250,000’’. 

17 (c) REDUCTION WHERE CORRECTION ON OR BEFORE

18 AUGUST 1.— 

19 (1) IN GENERAL.—Subparagraph (A) of section 

20 6721(b)(2) is amended by striking ‘‘$30’’ and insert21 ing ‘‘$60’’. 

22 (2) AGGREGATE ANNUAL LIMITATION.—Sub23 sections (b)(2)(B) and (d)(1)(C) of section 6721 are 

24 each amended by striking ‘‘$150,000’’ and inserting 

25 ‘‘$500,000’’. 


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1 (d) AGGREGATE ANNUAL LIMITATIONS FOR PER2 SONS WITH GROSS RECEIPTS OF NOT MORE THAN

3 $5,000,000.—Paragraph (1) of section 6721(d) is amend4 ed— 

5 (1) by striking ‘‘$100,000’’ in subparagraph 

6 (A) and inserting ‘‘$500,000’’; 

7 (2) by striking ‘‘$25,000’’ in subparagraph (B) 

8 and inserting ‘‘$75,000’’; and 

9 (3) by striking ‘‘$50,000’’ in subparagraph (C) 

10 and inserting ‘‘$200,000’’. 

11 (e) PENALTY IN CASE OF INTENTIONAL DIS12 REGARD.—Paragraph (2) of section 6721(e) is amended 

13 by striking ‘‘$100’’ and inserting ‘‘$250’’. 

14 (f) ADJUSTMENT FOR INFLATION.—Section 6721 is 

15 amended by adding at the end the following new sub16 section: 

17 ‘‘(f) ADJUSTMENT FOR INFLATION.— 

18 ‘‘(1) IN GENERAL.—For each fifth calendar 

19 year beginning after 2012, each of the dollar 

20 amounts under subsections (a), (b), (d) (other than 

21 paragraph (2)(A) thereof), and (e) shall be increased 

22 by such dollar amount multiplied by the cost-of-liv23 ing adjustment determined under section 1(f)(3) de24 termined by substituting ‘calendar year 2011’ for 

25 ‘calendar year 1992’ in subparagraph (B) thereof. 


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1 ‘‘(2) ROUNDING.—If any amount adjusted 

2 under paragraph (1)— 

3 ‘‘(A) is not less than $75,000 and is not 

4 a multiple of $500, such amount shall be 

5 rounded to the next lowest multiple of $500, 

6 and 

7 ‘‘(B) is not described in subparagraph (A) 

8 and is not a multiple of $10, such amount shall 

9 be rounded to the next lowest multiple of $10.’’. 

10 (g) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply with respect to information returns 

12 required to be filed on or after January 1, 2011. 

13 SEC. 309. CRUDE TALL OIL INELIGIBLE FOR CELLULOSIC 

14 BIOFUEL PRODUCER CREDIT. 

15 (a) IN GENERAL.—Section 40(B)(6)(E) of the Inter16 nal Revenue Code of 1986 is amended by adding at the 

17 end the following new clause: 

18 ‘‘(iv) EXCLUSION OF CERTAIN PROC19 ESSED FUELS WITH A HIGH ACID CON20 TENT.—The term ‘cellulosic biofuel’ shall 

21 not include any processed fuel with an acid 

22 number greater than 25. For purposes of 

23 the preceding sentence, the term ‘processed 

24 fuel’ means any fuel other than a fuel— 


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1 ‘‘(I) more than 4 percent of 

2 which (determined by weight) is any 

3 combination of water and sediment, or 

4 ‘‘(II) the ash content of which is 

5 more than 1 percent (determined by 

6 weight).’’. 

7 (b) EFFECTIVE DATE.—The amendment made by 

8 this section shall apply to fuels sold or used on or after 

9 January 1, 2010. 

10 SEC. 310. TIME FOR PAYMENT OF CORPORATE ESTIMATED 

11 TAXES. 

12 (a) SHIFT FROM 2015 TO 2014.—The percentage 

13 under paragraph (1) of section 202(b) of the Corporate 

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

15 of the enactment of this Act is increased by 4.5 percentage 

16 points. 

17 (b) SHIFT FROM 2016 TO 2015.—The percentage 

18 under paragraph (2) of section 561 of the Hiring Incen19 tives to Restore Employment Act in effect on the date of 

20 the enactment of this Act is increased by 3.5 percentage 

21 points. 

22 (c) SHIFT FROM 2020 TO 2019.—The percentage 

23 under paragraph (3) of section 561 of the Hiring Incen24 tives to Restore Employment Act in effect on the date of 


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1 the enactment of this Act is increased by 1.25 percentage 

2 points. 

3 TITLE IV—EXTENSION OF EMER4 GENCY CONTINGENCY FUND 

5 FOR STATE TEMPORARY AS6 SISTANCE FOR NEEDY FAMI7 LIES PROGRAMS 

8 SEC. 401. ONE-YEAR EXTENSION OF THE EMERGENCY CON9 TINGENCY FUND FOR STATE TEMPORARY AS10 SISTANCE FOR NEEDY FAMILIES PROGRAMS. 

11 (a) IN GENERAL.—Section 403(c) of the Social Secu12 rity Act (42 U.S.C. 603(c)) is amended— 

13 (1) in paragraph (2)(A), by inserting ‘‘, and for 

14 fiscal year 2011, $2,500,000,000’’ before ‘‘for pay15 ment’’; 

16 (2) by striking paragraph (2)(B) and inserting 

17 the following: 

18 ‘‘(B) AVAILABILITY AND USE OF FUNDS.— 

19 ‘‘(i) FISCAL YEARS 2009 AND 2010.— 

20 The amounts appropriated to the Emer21 gency Fund under subparagraph (A) for 

22 fiscal year 2009 shall remain available 

23 through fiscal year 2010 and shall be used 

24 to make grants to States in each of fiscal 


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1 years 2009 and 2010 in accordance with 

2 the requirements of paragraph (3). 

3 ‘‘(ii) FISCAL YEAR 2011.—Subject to 

4 clause (iii), the amounts appropriated to 

5 the Emergency Fund under subparagraph 

6 (A) for fiscal year 2011 shall remain avail7 able through fiscal year 2012 and shall be 

8 used to make grants to States based on ex9 penditures in fiscal year 2011 for benefits 

10 and services provided in fiscal year 2011 in 

11 accordance with the requirements of para12 graph (3). 

13 ‘‘(iii) RESERVATION OF FUNDS.—Of 

14 the amounts appropriated to the Emer15 gency Fund under subparagraph (A) for 

16 fiscal year 2011, $500,000 shall be placed 

17 in reserve for use in fiscal year 2012, and 

18 shall be used to award grants for any ex19 penditures described in this subsection in20 curred by States after September 30, 

21 2011.’’; 

22 (3) in paragraph (2)(C), by striking ‘‘2010’’ 

23 and inserting ‘‘2012’’; 

24 (4) in paragraph (3)— 


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1 (A) in clause (i) of each of subparagraphs 

2 (A), (B), and (C)— 

3 (i) by striking ‘‘year 2009 or 2010’’ 

4 and inserting ‘‘years 2009 through 2011’’; 

5 (ii) by striking ‘‘and’’ at the end of 

6 subclause (I); 

7 (iii) by striking the period at the end 

8 of subclause (II) and inserting ‘‘; and’’; 

9 and 

10 (iv) by adding at the end the fol11 lowing: 

12 ‘‘(III) if the quarter is in fiscal 

13 year 2011, has provided the Secretary 

14 with such information as the Sec15 retary may find necessary in order to 

16 make the determinations, or take any 

17 other action, described in paragraph 

18 (5)(C).’’; and 

19 (B) in subparagraph (C), by adding at the 

20 end the following: 

21 ‘‘(iv) LIMITATION ON EXPENDITURES

22 FOR SUBSIDIZED EMPLOYMENT.—An ex23 penditure for subsidized employment shall 

24 be taken into account under clause (ii) 


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1 only if the expenditure is used to subsidize 

2 employment for— 

3 ‘‘(I) a member of a needy family 

4 (without regard to whether the family 

5 is receiving assistance under the State 

6 program funded under this part); or 

7 ‘‘(II) an individual who has ex8 hausted (or, within 60 days, will ex9 haust) all rights to receive unemploy10 ment compensation under Federal and 

11 State law, and who is a member of a 

12 needy household (regardless of wheth13 er the household includes a child).’’; 

14 (5) by striking paragraph (5) and inserting the 

15 following: 

16 ‘‘(5) LIMITATIONS ON PAYMENTS; ADJUSTMENT

17 AUTHORITY.— 

18 ‘‘(A) FISCAL YEARS 2009 AND 2010.—The 

19 total amount payable to a single State under 

20 subsection (b) and this subsection for fiscal 

21 years 2009 and 2010 combined shall not exceed 

22 50 percent of the annual State family assist23 ance grant. 

24 ‘‘(B) FISCAL YEAR 2011.—Subject to sub25 paragraph (C), the total amount payable to a 


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1 single State under subsection (b) and this sub2 section for fiscal year 2011 shall not exceed 30 

3 percent of the annual State family assistance 

4 grant. 

5 ‘‘(C) ADJUSTMENT AUTHORITY.—If the 

6 Secretary determines that the Emergency Fund 

7 is at risk of being depleted before September 

8 30, 2011, or that funds are available to accom9 modate additional State requests under this 

10 subsection, the Secretary may, through program 

11 instructions issued without regard to the re12 quirements of section 553 of title 5, United 

13 States Code— 

14 ‘‘(i) specify priority criteria for award15 ing grants to States during fiscal year 

16 2011; and 

17 ‘‘(ii) adjust the percentage limitation 

18 applicable under subparagraph (B) with 

19 respect to the total amount payable to a 

20 single State for fiscal year 2011.’’; and 

21 (6) in paragraph (6), by inserting ‘‘or for ex22 penditures described in paragraph (3)(C)(iv)’’ before 

23 the period. 


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1 (b) CONFORMING AMENDMENTS.—Section 2101 of 

2 division B of the American Recovery and Reinvestment 

3 Act of 2009 (Public Law 111–5) is amended— 

4 (1) in subsection (a)(2)— 

5 (A) by striking ‘‘2010’’ and inserting 

6 ‘‘2011’’; and 

7 (B) by striking all that follows ‘‘repealed’’ 

8 and inserting a period; and 

9 (2) in subsection (d)(1), by striking ‘‘2010’’ 

10 and inserting ‘‘2011’’. 

11 (c) PROGRAM GUIDANCE.—The Secretary of Health 

12 and Human Services shall issue program guidance, with13 out regard to the requirements of section 553 of title 5, 

14 United States Code, which ensures that the funds provided 

15 under the amendments made by this section for subsidized 

16 employment do not support any subsidized employment 

17 position the annual salary of which is greater than, at 

18 State option— 

19 (1) 200 percent of the poverty line (within the 

20 meaning of section 673(2) of the Omnibus Budget 

21 Reconciliation Act of 1981, including any revision 

22 required by such section 673(2)) for a family of 4; 

23 or 


srobinson on DSKHWCL6B1PROD with BILLS
47 

HR 4849 RFS 

1 (2) the median wage in any jurisdiction oper2 ating a program with funds provided pursuant to the 

3 amendments. 

Passed the House of Representatives March 24, 

2010. 

Attest: LORRAINE C. MILLER, 

Clerk. 


srobinson on DSKHWCL6B1PROD with BILLS