H. R. 2847 

One Hundred Eleventh Congress 

of the 

United States of America 

AT THE SECOND SESSION 

Begun and held at the City of Washington on Tuesday, 

the fifth day of January, two thousand and ten 

An Act 

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. 

Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress assembled, 

SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF CONTENTS. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Hiring Incentives to Restore Employment Act’’. 

(b) AMENDMENT OF 1986 CODE.—Except as otherwise expressly 

provided, whenever in this Act an amendment or repeal is expressed 

in terms of an amendment to, or repeal of, a section or other 

provision, the reference shall be considered to be made to a section 

or other provision of the Internal Revenue Code of 1986. 

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

is as follows: 

Sec. 1. Short title; amendment of 1986 Code; table of contents. 

TITLE I—INCENTIVES FOR HIRING AND RETAINING UNEMPLOYED 

WORKERS 

Sec. 101. Payroll tax forgiveness for hiring unemployed workers. 

Sec. 102. Business credit for retention of certain newly hired individuals in 2010. 

TITLE II—EXPENSING 

Sec. 201. Increase in expensing of certain depreciable business assets. 

TITLE III—QUALIFIED TAX CREDIT BONDS 

Sec. 301. Issuer allowed refundable credit for certain qualified tax credit bonds. 

TITLE IV—EXTENSION OF CURRENT SURFACE TRANSPORTATION 

PROGRAMS 

Sec. 401. Short title. 

Subtitle A—Federal-aid Highways 

Sec. 411. In general. 

Sec. 412. Administrative expenses. 

Sec. 413. Rescission of unobligated balances. 

Sec. 414. Reconciliation of funds. 

Subtitle B—National Highway Traffic Safety Administration, Federal Motor Carrier 

Safety Administration, and Additional Programs 

Sec. 421. Extension of National Highway Traffic Safety Administration Highway 

Safety Programs. Sec. 422. Extension of Federal Motor Carrier Safety Administration Programs. 

Sec. 423. Additional programs. 

Subtitle C—Public Transportation Programs 

Sec. 431. Allocation of funds for planning programs. 
H. R. 2847—2 

Sec. 432. Special rule for urbanized area formula grants. 

Sec. 433. Allocating amounts for capital investment grants. 

Sec. 434. Apportionment of formula grants for other than urbanized areas. 

Sec. 435. Apportionment based on fixed guideway factors. 

Sec. 436. Authorizations for public transportation. 

Sec. 437. Amendments to SAFETEA–LU. 

Subtitle D—Revenue Provisions 

Sec. 441. Repeal of provision prohibiting the crediting of interest to the Highway 

Trust Fund. 

Sec. 442. Restoration of certain foregone interest to Highway Trust Fund. 

Sec. 443. Treatment of certain amounts appropriated to Highway Trust Fund. 

Sec. 444. Termination of transfers from highway trust fund for certain repayments 

and credits. 

Sec. 445. Extension of authority for expenditures. 

Sec. 446. Level of obligation limitations. 

Subtitle E—Disadvantaged Business Enterprises 

Sec. 451. Disadvantaged business enterprises. 

TITLE V—OFFSET PROVISIONS 

Subtitle A—Foreign Account Tax Compliance 

PART I—INCREASED DISCLOSURE OF BENEFICIAL OWNERS

Sec. 501. Reporting on certain foreign accounts. 

Sec. 502. Repeal of certain foreign exceptions to registered bond requirements. 

PART II—UNDER REPORTING WITH RESPECT TO FOREIGN ASSETS

Sec. 511. Disclosure of information with respect to foreign financial assets. 

Sec. 512. Penalties for underpayments attributable to undisclosed foreign financial 

assets. 

Sec. 513. Modification of statute of limitations for significant omission of income in 

connection with foreign assets. 

PART III—OTHER DISCLOSURE PROVISIONS

Sec. 521. Reporting of activities with respect to passive foreign investment companies. 

Sec. 522. Secretary permitted to require financial institutions to file certain returns 

related to withholding on foreign transfers electronically. 

PART IV—PROVISIONS RELATED TO FOREIGN TRUSTS

Sec. 531. Clarifications with respect to foreign trusts which are treated as having 

a United States beneficiary. Sec. 532. Presumption that foreign trust has United States beneficiary. 

Sec. 533. Uncompensated use of trust property. 

Sec. 534. Reporting requirement of United States owners of foreign trusts. 

Sec. 535. Minimum penalty with respect to failure to report on certain foreign 

trusts. 

PART V—SUBSTITUTE DIVIDENDS AND DIVIDEND EQUIVALENT PAYMENTS RECEIVED

BY FOREIGN PERSONS TREATED AS DIVIDENDS

Sec. 541. Substitute dividends and dividend equivalent payments received by foreign persons treated as dividends. 

Subtitle B—Delay in Application of Worldwide Allocation of Interest 

Sec. 551. Delay in application of worldwide allocation of interest. 

Subtitle C—Budgetary Provisions 

Sec. 561. Time for payment of corporate estimated taxes. 

Sec. 562. PAYGO Compliance. 

TITLE I—INCENTIVES FOR HIRING AND 

RETAINING UNEMPLOYED WORKERS 

SEC. 101. PAYROLL TAX FORGIVENESS FOR HIRING UNEMPLOYED 

WORKERS. 

(a) IN GENERAL.—Section 3111 is amended by adding at the 

end the following new subsection: 
H. R. 2847—3 

‘‘(d) SPECIAL EXEMPTION FOR CERTAIN INDIVIDUALS HIRED IN

2010.— 

‘‘(1) IN GENERAL.—Subsection (a) shall not apply to wages 

paid by a qualified employer with respect to employment during 

the period beginning on the day after the date of the enactment 

of this subsection and ending on December 31, 2010, of any 

qualified individual for services performed— 

‘‘(A) in a trade or business of such qualified employer, 

or 

‘‘(B) in the case of a qualified employer exempt from 

tax under section 501(a), in furtherance of the activities 

related to the purpose or function constituting the basis 

of the employer’s exemption under section 501. 

‘‘(2) QUALIFIED EMPLOYER.—For purposes of this subsection— 

‘‘(A) IN GENERAL.—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. 

‘‘(B) TREATMENT OF EMPLOYEES OF POST-SECONDARY

EDUCATIONAL INSTITUTIONS.—Notwithstanding subparagraph (A), the term ‘qualified employer’ includes any 

employer which is a public institution of higher education 

(as defined in section 101(b) of the Higher Education Act 

of 1965). 

‘‘(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

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.’’. 
H. R. 2847—4 

(b) COORDINATION WITH WORK OPPORTUNITY CREDIT.—Section 

51(c) is amended by adding at the end the following new paragraph: 

‘‘(5) COORDINATION WITH PAYROLL TAX FORGIVENESS.—The 

term ‘wages’ shall not include any amount paid or incurred 

to a qualified individual (as defined in section 3111(d)(3)) during 

the 1-year period beginning on the hiring date of such individual by a qualified employer (as defined in section 3111(d)) 

unless such qualified employer makes an election not to have 

section 3111(d) apply.’’. 

(c) TRANSFERS TO FEDERAL OLD-AGE AND SURVIVORS INSURANCE

TRUST FUND.—There are hereby appropriated to the Federal OldAge and Survivors Trust Fund and the Federal Disability Insurance 

Trust Fund established under section 201 of the Social Security 

Act (42 U.S.C. 401) amounts equal to the reduction in revenues 

to the Treasury by reason of the amendments made by subsection 

(a). Amounts appropriated by the preceding sentence shall be transferred from the general fund at such times and in such manner 

as to replicate to the extent possible the transfers which would 

have occurred to such Trust Fund had such amendments not been 

enacted. 

(d) APPLICATION TO RAILROAD RETIREMENT TAXES.— 

(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. 
H. R. 2847—5 

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

‘‘(A) NONAPPLICATION OF EXEMPTION DURING FIRST

QUARTER.—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

ACCOUNT.—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 

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. 

SEC. 102. BUSINESS CREDIT FOR RETENTION OF CERTAIN NEWLY 

HIRED INDIVIDUALS IN 2010. 

(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) RETAINED WORKER.—For purposes of this section, the term 

‘‘retained worker’’ means any qualified individual (as defined in 

section 3111(d)(3) or section 3221(c)(3) of the Internal Revenue 

Code of 1986)— 

(1) who was employed by the taxpayer on any date during 

the taxable year, 

(2) who was so employed by the taxpayer for a period 

of not less than 52 consecutive weeks, and 

(3) whose wages (as defined in section 3401(a)) for such 

employment during the last 26 weeks of such period equaled 

at least 80 percent of such wages for the first 26 weeks of 

such period. 
H. R. 2847—6 

(c) LIMITATION ON CARRYBACKS.—No portion of the unused 

business credit under section 38 of the Internal Revenue Code 

of 1986 for any taxable year which is attributable to the increase 

in the current year business credit under this section may be 

carried to a taxable year beginning before the date of the enactment 

of this section. 

(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 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. 
H. R. 2847—7 

TITLE II—EXPENSING 

SEC. 201. INCREASE IN EXPENSING OF CERTAIN DEPRECIABLE BUSINESS ASSETS. 

(a) IN GENERAL.—Subsection (b) of section 179 is amended— 

(1) by striking ‘‘($125,000 in the case of taxable years 

beginning after 2006 and before 2011)’’ in paragraph (1) and 

inserting ‘‘($250,000 in the case of taxable years beginning 

after 2007 and before 2011)’’, 

(2) by striking ‘‘($500,000 in the case of taxable years 

beginning after 2006 and before 2011)’’ in paragraph (2) and 

inserting ‘‘($800,000 in the case of taxable years beginning 

after 2007 and before 2011)’’, 

(3) by striking paragraphs (5) and (7), and 

(4) by redesignating paragraph (6) as paragraph (5). 

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

shall apply to taxable years beginning after December 31, 2009. 

TITLE III—QUALIFIED TAX CREDIT 

BONDS 

SEC. 301. ISSUER ALLOWED REFUNDABLE CREDIT FOR CERTAIN 

QUALIFIED TAX CREDIT BONDS. 

(a) CREDIT ALLOWED.—Section 6431 is amended by adding at 

the end the following new subsection: 

‘‘(f) APPLICATION OF SECTION TO CERTAIN QUALIFIED TAX

CREDIT BONDS.— 

‘‘(1) IN GENERAL.—In the case of any specified tax credit 

bond— 

‘‘(A) such bond shall be treated as a qualified bond 

for purposes of this section, 

‘‘(B) subsection (a) shall be applied without regard 

to the requirement that the qualified bond be issued before 

January 1, 2011, 

‘‘(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), 

‘‘(D) interest on any such bond shall be includible in 

gross income for purposes of this title, 

‘‘(E) no credit shall be allowed under section 54A with 

respect to such bond, 

‘‘(F) any payment made under subsection (b) shall not 

be includible as income for purposes of this title, and 

‘‘(G) the deduction otherwise allowed under this title 

to the issuer of such bond with respect to interest paid 

under such bond shall be reduced by the amount of the 

payment made under this section with respect to such 

interest. 
H. R. 2847—8 

‘‘(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 determined 

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.’’. 

(b) TECHNICAL CORRECTIONS RELATING TO QUALIFIED SCHOOL

CONSTRUCTION BONDS.— 

(1) The second sentence of section 54F(d)(1) is amended 

by striking ‘‘by the State’’ and inserting ‘‘by the State education 

agency (or such other agency as is authorized under State 

law to make such allocation)’’. 

(2) The second sentence of section 54F(e) is amended by 

striking ‘‘subsection (d)(4)’’ and inserting ‘‘paragraphs (2) and 

(4) of subsection (d)’’. 

(c) EFFECTIVE DATES.— (1) IN GENERAL.—The amendment made by subsection (a) 

shall apply to bonds issued after the date of the enactment 

of this Act. 

(2) TECHNICAL CORRECTIONS.—The amendments made by 

subsection (b) shall take effect as if included in section 1521 

of the American Recovery and Reinvestment Tax Act of 2009. 

TITLE IV—EXTENSION OF CURRENT 

SURFACE TRANSPORTATION PROGRAMS 

SEC. 401. SHORT TITLE. 

This title may be cited as the ‘‘Surface Transportation Extension 

Act of 2010’’. 

Subtitle A—Federal-aid Highways 

SEC. 411. IN GENERAL. 

(a) IN GENERAL.—Except as provided in this Act, requirements, 

authorities, conditions, eligibilities, limitations, and other provisions 

authorized under titles I, V, and VI of the SAFETEA–LU (119 

Stat. 1144), the SAFETEA–LU Technical Corrections Act of 2008 
H. R. 2847—9 

(122 Stat. 1572), titles I and VI of the Intermodal Surface Transportation Act of 1991 (105 Stat. 1914), titles I and V of the Transportation Equity Act for the 21st Century (112 Stat. 107), and title 

23, United States Code (excluding chapter 4 of that title), which 

would otherwise expire on or cease to apply after September 30, 

2009, or the date specified in section 106(3) of the Continuing 

Appropriations Resolution, 2010 (Public Law 111–68), are incorporated by reference and shall continue in effect until December 

31, 2010. 

(b) AUTHORIZATION OF APPROPRIATIONS.—Except as provided 

in section 412, there are authorized to be appropriated out of 

the Highway Trust Fund (other than the Mass Transit Account)— 

(1) for fiscal year 2010, a sum equal to the total amount 

authorized to be appropriated out of the Highway Trust Fund 

for programs, projects, and activities for fiscal year 2009 under 

titles I, V, and VI of the SAFETEA–LU (119 Stat. 1144), 

and title 23, United States Code (excluding chapter 4 of that 

title); and 

(2) for the period beginning on October 1, 2010, and ending 

on December 31, 2010, a sum equal to 1⁄4 of the total amount 

authorized to be appropriated out of the Highway Trust Fund 

for programs, projects, and activities for fiscal year 2009 under 

titles I, V, and VI of the SAFETEA–LU (119 Stat. 1144), 

and title 23, United States Code (excluding chapter 4 of that 

title). 

(c) USE OF FUNDS.— 

(1) FISCAL YEAR 2010.—Except as otherwise expressly provided in this Act, funds authorized to be appropriated under 

subsection (b)(1) for fiscal year 2010 shall be distributed, 

administered, limited, and made available for obligation in 

the same manner and at the same level as funds authorized 

to be appropriated out of the Highway Trust Fund for fiscal 

year 2009 to carry out programs, projects, activities, eligibilities, 

and requirements under the SAFETEA–LU (119 Stat. 1144), 

the SAFETEA–LU Technical Corrections Act of 2008 (122 Stat. 

1572), titles I and VI of the Intermodal Surface Transportation 

Act of 1991 (105 Stat. 1914), titles I and V of the Transportation 

Equity Act for the 21st Century (112 Stat. 107), and title 

23, United States Code (excluding chapter 4 of that title). 

(2) FISCAL YEAR 2011.—Except as otherwise expressly provided in this Act, funds authorized to be appropriated under 

subsection (b)(2) for the period beginning on October 1, 2010, 

and ending on December 31, 2010, shall be distributed, administered, limited, and made available for obligation in the same 

manner and at the same level as 1⁄4 of the total amount of 

funds authorized to be appropriated out of the Highway Trust 

Fund for fiscal year 2009 to carry out programs, projects, activities, eligibilities, and requirements under the SAFETEA–LU 

(119 Stat. 1144), the SAFETEA–LU Technical Corrections Act 

of 2008 (122 Stat. 1572), titles I and VI of the Intermodal 

Surface Transportation Act of 1991 (105 Stat. 1914), titles 

I and V of the Transportation Equity Act for the 21st Century 

(112 Stat. 107), and title 23, United States Code (excluding 

chapter 4 of that title). 

(3) CALCULATION.—The amounts authorized to be appropriated under subsection (b) shall be calculated without regard 

to any rescission or cancellation of funds or contract authority 
H. R. 2847—10 

for fiscal year 2009 under the SAFETEA–LU (119 Stat. 1144) 

or any other law. 

(4) CONTRACT AUTHORITY.— 

(A) IN GENERAL.—Except as provided in subparagraph 

(B), funds authorized to be appropriated under this section 

shall be available for obligation and shall be administered 

in the same manner as if such funds were apportioned 

under chapter 1 of title 23, United States Code, and— 

(i) for fiscal year 2010, shall be subject to a limitation on obligations for Federal-aid highways and highway safety construction programs included in an Act 

making appropriations for fiscal year 2010 or a portion 

of that fiscal year; and 

(ii) for the period beginning on October 1, 2010, 

and ending on December 31, 2010, shall be subject 

to a limitation on obligations included in an Act making 

appropriations for fiscal year 2011 or a portion of that 

fiscal year, except that during such period obligations 

subject to such limitation shall not exceed 1⁄4 of the 

limitation on obligations included in an Act making 

appropriations for fiscal year 2011. 

(B) EXCEPTIONS.—A limitation on obligations described 

in clause (i) or (ii) of subparagraph (A) shall not apply 

to any obligation under— 

(i) section 125 of title 23, United States Code; 

or 

(ii) section 105 of title 23, United States Code— 

(I) for fiscal year 2010, only in an amount 

equal to $639,000,000; and 

(II) for the period beginning on October 1, 

2010, and ending on December 31, 2010, only in 

an amount equal to $159,750,000. 

(5) CALCULATIONS FOR DISTRIBUTION OF OBLIGATION LIMITATION.—Upon enactment of an Act making appropriations for 

the Department of Transportation for fiscal year 2011 (other 

than an Act or resolution making continuing appropriations), 

the Secretary shall— 

(A) as necessary for purposes of making the calculations for the distribution of any obligation limitation under 

such Act, annualize the amount of contract authority provided under this Act for Federal-aid highways and highway 

safety construction programs; and 

(B) multiply the resulting distribution of any obligation 

limitation under such Act by 1⁄4. 

(d) EXTENSION AND FLEXIBILITY FOR CERTAIN ALLOCATED PROGRAMS.— 

(1) FISCAL YEAR 2010.—Notwithstanding any other provision 

of law, for fiscal year 2010, the portion of the share of funds 

of a State under subsection (b)(1) determined by the amount 

that the State received or was authorized to receive for fiscal 

year 2009 to carry out sections 1301, 1302, 1307, 1702, and 

1934 of the SAFETEA–LU (119 Stat. 1198, 1204, 1217, 1256, 

and 1485), and section 144(f)(1) of title 23, United States Code, 

shall be— 

(A) made available to the State for programs apportioned under sections 104(b) and 144 of title 23, United 
H. R. 2847—11 

States Code, and in the same proportion for each such 

program that— 

(i) the amount apportioned to the State for that 

program for fiscal year 2009; bears to 

(ii) the amount apportioned to the State for fiscal 

year 2009 for all programs apportioned under such 

sections of such Code; and 

(B) administered in the same manner and with the 

same period of availability as such funding is administered 

under programs identified in subparagraph (A), except that 

no funds may be used to carry out the project described 

in section 1307(d)(1) of the SAFETEA–LU (119 Stat. 1217; 

122 Stat. 1577). 

(2) FISCAL YEAR 2011.—Notwithstanding any other provision 

of law, for the period beginning on October 1, 2010, and ending 

on December 31, 2010, the portion of the share of funds of 

a State under subsection (b)(2) determined by 1⁄4 of the amount 

that the State received or was authorized to receive for fiscal 

year 2009 to carry out sections 1301, 1302, 1307, 1702, and 

1934 of the SAFETEA–LU (119 Stat. 1198, 1204, 1217, 1256, 

and 1485) and section 144(f)(1) of title 23, United States Code, 

shall be— 

(A) made available to the State for programs apportioned under sections 104(b) and 144 of title 23, United 

States Code, and in the same proportion for each such 

program that— 

(i) the amount apportioned to the State for that 

program for fiscal year 2009; bears to 

(ii) the amount apportioned to the State for fiscal 

year 2009 for all programs apportioned under such 

sections of such Code; and 

(B) administered in the same manner and with the 

same period of availability as such funding is administered 

under programs identified in subparagraph (A), except that 

no funds may be used to carry out the project described 

in section 1307(d)(1) of the SAFETEA–LU (119 Stat. 1217; 

122 Stat. 1577). 

(3) TERRITORIES AND PUERTO RICO.— (A) FISCAL YEAR 2010.—Notwithstanding any other 

provision of law, for fiscal year 2010, the portion of the 

share of funds of a territory or Puerto Rico under paragraph 

(b)(1) determined by the amount that the territory or 

Puerto Rico received or was authorized to receive for fiscal 

year 2009 to carry out section 1934 of SAFETEA–LU (119 

Stat. 1485), shall be— 

(i) for a territory, made available and administered 

in the same manner as funding is made available 

and administered under section 215 of title 23, United 

States Code; and 

(ii) for Puerto Rico, made available and administered in the same manner as funding is made available 

and administered under section 165 of title 23, United 

States Code. 

(B) FISCAL YEAR 2011.—Notwithstanding any other 

provision of law, for the period beginning on October 1, 

2010, and ending on December 31, 2010, the portion of 

the share of funds of a territory or Puerto Rico under 
H. R. 2847—12 

paragraph (b)(2) determined by 1⁄4 of the amount that 

the territory or Puerto Rico received or was authorized 

to receive for fiscal year 2009 to carry out section 1934 

of SAFETEA–LU (119 Stat. 1485), shall be— 

(i) for a territory, made available and administered 

in the same manner as funding is made available 

and administered under section 215 of title 23, United 

States Code; and 

(ii) for Puerto Rico, made available and administered in the same manner as funding is made available 

and administered under section 165 of title 23, United 

States Code. 

(C) TERRITORY DEFINED.—In this paragraph, the term 

‘‘territory’’ means any of the following territories of the 

United States: American Samoa, the Commonwealth of 

the Northern Mariana Islands, Guam, or the United States 

Virgin Islands. 

(4) ADDITIONAL FUNDS.— 

(A) IN GENERAL.—No additional funds shall be provided 

for any project or activity under subsection (c), or paragraph 

(1) or (2) of this subsection, that the Secretary of Transportation determines was sufficiently funded before or during 

fiscal year 2009 to achieve the authorized purpose of the 

project or activity. 

(B) RESERVATION AND REDISTRIBUTION OF FUNDS.— Funds made available in accordance with paragraph (1) 

or (2) of subsection (c) or paragraph (1) or (2) of this 

subsection for a project or activity described in subparagraph (A) shall be— 

(i) reserved by the Secretary of Transportation; 

and 

(ii) distributed to each State in accordance with 

paragraph (1) or (2) of subsection (c), or paragraph 

(1) or (2) of this subsection, as appropriate, for use 

in carrying out other highway projects and activities 

extended by subsection (c) or this subsection, in the 

proportion that— 

(I) the total amount of funds made available 

for fiscal year 2009 for projects and activities 

described in subparagraph (A) in the State; bears 

to 

(II) the total amount of funds made available 

for fiscal year 2009 for those projects and activities 

in all States. 

(e) EXTENSION OF AUTHORIZATIONS UNDER TITLE V OF

SAFETEA–LU.— 

(1) IN GENERAL.—The programs authorized under paragraphs (1) through (5) of section 5101(a) of the SAFETEA– 

LU (119 Stat. 1779) shall be continued— 

(A) for fiscal year 2010, at the funding levels authorized 

for those programs for fiscal year 2009; and 

(B) for the period beginning on October 1, 2010, and 

ending on December 31, 2010, at 1⁄4 the funding levels 

authorized for those programs for fiscal year 2009. 

(2) DISTRIBUTION OF FUNDS.—Funds for programs continued under paragraph (1) shall be distributed to major program 

areas under those programs in the same proportions as funds 
H. R. 2847—13 

were allocated for those program areas for fiscal year 2009, 

except that designations for specific activities shall not be 

required to be continued for— 

(A) fiscal year 2010; or 

(B) the period beginning on October 1, 2010, and ending 

on December 31, 2010. 

(3) ADDITIONAL FUNDS.— (A) IN GENERAL.—No additional funds shall be provided 

for any project or activity under this subsection that the 

Secretary of Transportation determines was sufficiently 

funded before or during fiscal year 2009 to achieve the 

authorized purpose of the project or activity. 

(B) DISTRIBUTION.—Funds that would have been made 

available under paragraph (1) for a project or activity but 

for the prohibition under subparagraph (A) shall be distributed in accordance with paragraph (2). 

SEC. 412. ADMINISTRATIVE EXPENSES. 

(a) AUTHORIZATION OF CONTRACT AUTHORITY.—Notwithstanding any other provision of this Act or any other law, there 

are authorized to be appropriated from the Highway Trust Fund 

(other than the Mass Transit Account), from amounts provided 

under section 411, for administrative expenses of the Federal-aid 

highway program— (1) $422,425,000 for fiscal year 2010; and 

(2) $105,606,250 for the period beginning on October 1, 

2010, and ending on December 31, 2010. 

(b) CONTRACT AUTHORITY.—Funds authorized to be appropriated by this section shall be— 

(1) available for obligation, and shall be administered, in 

the same manner as if such funds were apportioned under 

chapter 1 of title 23, United States Code; and 

(2) subject to a limitation on obligations for Federal-aid 

highways and highway safety construction programs, except 

that such funds shall remain available until expended. 

SEC. 413. RESCISSION OF UNOBLIGATED BALANCES. 

(a) IN GENERAL.—The Secretary of Transportation shall restore 

funds rescinded pursuant to section 10212 of the SAFETEA–LU 

(Public Law 109–59; 119 Stat. 1937) to the States and to the 

programs from which the funds were rescinded. 

(b) ADMINISTRATION OF FUNDS.—The restored amounts shall 

be administered in the same manner as the funds originally 

rescinded, except those funds may only be used with an obligation 

limitation provided in an Act making appropriations for Federalaid highways and highway safety construction programs enacted 

after implementation of the rescission under section 10212 of the 

SAFETEA–LU (Public Law 109–59; 119 Stat. 1937). 

(c) FUNDING.— (1) IN GENERAL.—There is authorized to be appropriated 

from the Highway Trust Fund (other than the Mass Transit 

Account) for fiscal year 2010 to carry out this section an amount 

equal to the amount of funds rescinded under section 10212 

of the SAFETEA–LU (Public Law 109–59; 119 Stat. 1937). 

(2) AVAILABILITY FOR OBLIGATION.—Funds authorized to 

be appropriated by this section shall be— 

(A) made available under this section and available 

for obligation in the same manner as if the funds were 
H. R. 2847—14 

apportioned under chapter 1 of title 23, United States 

Code, except that the funds shall retain the characteristics 

of the funds originally rescinded; and 

(B) subject to a limitation on obligations for Federalaid highways and highway safety construction programs 

included in an Act making appropriations for fiscal year 

2010 or a portion of the fiscal year. 

(d) LIMITATION.—No funds authorized to be restored under 

this section shall be restored after the end of fiscal year 2010. 

SEC. 414. RECONCILIATION OF FUNDS. 

The Secretary shall reduce the amount apportioned or allocated 

for a program, project, or activity under this title by amounts 

apportioned or allocated pursuant to the Continuing Appropriations 

Resolution, 2010 (Public Law 111–68). 

Subtitle B—National Highway Traffic Safety Administration, Federal Motor Carrier 

Safety Administration, and Additional 

Programs 

SEC. 421. EXTENSION OF NATIONAL HIGHWAY TRAFFIC SAFETY 

ADMINISTRATION HIGHWAY SAFETY PROGRAMS. 

(a) CHAPTER 4 HIGHWAY SAFETY PROGRAMS.—Section 2001(a)(1) 

of the SAFETEA–LU (119 Stat. 1519) is amended— 

(1) by striking ‘‘and’’; and 

(2) by striking ‘‘2009.’’ and inserting ‘‘2009, $235,000,000 for fiscal year 2010, and $58,750,000 for the period beginning 

on October 1, 2010, and ending on December 31, 2010.’’. 

(b) HIGHWAY SAFETY RESEARCH AND DEVELOPMENT.—Section 

2001(a)(2) of the SAFETEA–LU (119 Stat. 1519) is amended— 

(1) by striking ‘‘and’’; and 

(2) by striking ‘‘2009.’’ and inserting ‘‘2009, $107,329,000 for fiscal year 2010, and $27,061,000 for the period beginning 

on October 1, 2010, and ending on December 31, 2010.’’. 

(c) OCCUPANT PROTECTION INCENTIVE GRANTS.— 

(1) EXTENSION OF PROGRAM.—Section 405(a) of title 23, 

United States Code, is amended— 

(A) in paragraph (3), by striking ‘‘6’’ and inserting 

‘‘8’’; and 

(B) in paragraph (4)(C), by striking ‘‘fifth and sixth’’ 

and inserting ‘‘fifth through eighth’’. 

(2) AUTHORIZATION OF APPROPRIATIONS.—Section 2001(a)(3) 

of the SAFETEA–LU (119 Stat. 1519) is amended— 

(A) by striking ‘‘and’’; and 

(B) by striking ‘‘2009.’’ and inserting ‘‘2009, $25,000,000 for fiscal year 2010, and $6,250,000 for the period beginning 

on October 1, 2010, and ending on December 31, 2010.’’. 

(d) SAFETY BELT PERFORMANCE GRANTS.—Section 2001(a)(4) 

of the SAFETEA–LU (119 Stat. 1519) is amended— 

(1) by striking ‘‘and’’; and 

(2) by striking ‘‘2009.’’ and inserting ‘‘2009, $124,500,000 for fiscal year 2010, and $31,125,000 for the period beginning 

on October 1, 2010, and ending on December 31, 2010.’’. 
H. R. 2847—15 

(e) STATE TRAFFIC SAFETY INFORMATION SYSTEM IMPROVEMENTS.—Section 2001(a)(5) of the SAFETEA–LU (119 Stat. 1519) 

is amended— 

(1) by striking ‘‘and’’; and 

(2) by striking ‘‘2009.’’ and inserting ‘‘2009, $34,500,000 

for fiscal year 2010, and $8,625,000 for the period beginning 

on October 1, 2010, and ending on December 31, 2010.’’. 

(f) ALCOHOL-IMPAIRED DRIVING COUNTERMEASURES INCENTIVE

GRANT PROGRAM.— 

(1) EXTENSION OF PROGRAM.—Section 410 of title 23, United 

States Code, is amended— 

(A) in subsection (a)(3)(C), by striking ‘‘fifth, sixth, 

seventh, and eighth’’ and inserting ‘‘fifth through tenth’’; 

and 

(B) in subsection (b)(2)(C), by striking ‘‘2008 and 2009’’ 

and inserting ‘‘2008, 2009, 2010, and 2011’’. 

(2) AUTHORIZATION OF APPROPRIATIONS.—Section 2001(a)(6) 

of the SAFETEA–LU (119 Stat. 1519) is amended— 

(A) by striking ‘‘and’’; and 

(B) by striking ‘‘2009.’’ and inserting ‘‘2009, 

$139,000,000 for fiscal year 2010, and $34,750,000 for the 

period beginning on October 1, 2010, and ending on 

December 31, 2010.’’. 

(g) NATIONAL DRIVER REGISTER.—Section 2001(a)(7) of the 

SAFETEA–LU (119 Stat. 1520) is amended— 

(1) by striking ‘‘and’’; and 

(2) by striking ‘‘2009.’’ and inserting ‘‘2009, $4,078,000 for fiscal year 2010, and $1,029,000 for the period beginning on 

October 1, 2010, and ending on December 31, 2010.’’. 

(h) HIGH VISIBILITY ENFORCEMENT PROGRAM.— (1) EXTENSION OF PROGRAM.—Section 2009(a) of the 

SAFETEA–LU (23 U.S.C. 402 note) is amended by striking 

‘‘2009’’ and inserting ‘‘2011’’. 

(2) AUTHORIZATION OF APPROPRIATIONS.—Section 2001(a)(8) 

of the SAFETEA–LU (119 Stat. 1520) is amended— 

(A) by striking ‘‘and’’; and 

(B) by striking ‘‘2009.’’ and inserting ‘‘2009, $29,000,000 for fiscal year 2010, and $7,250,000 for the period beginning 

on October 1, 2010, and ending on December 31, 2010.’’. 

(i) MOTORCYCLIST SAFETY.— 

(1) EXTENSION OF PROGRAM.—Section 2010(d)(1)(B) of the 

SAFETEA–LU (23 U.S.C. 402 note) is amended by striking 

‘‘and fourth’’ and inserting ‘‘fourth, fifth, and sixth’’. 

(2) AUTHORIZATION OF APPROPRIATIONS.—Section 2001(a)(9) 

of the SAFETEA–LU (119 Stat. 1520) is amended— 

(A) by striking ‘‘and’’; and 

(B) by striking ‘‘2009.’’ and inserting ‘‘2009, $7,000,000 

for fiscal year 2010, and $1,750,000 for the period beginning 

on October 1, 2010, and ending on December 31, 2010.’’. 

(j) CHILD SAFETY AND CHILD BOOSTER SEAT SAFETY INCENTIVE

GRANTS.— 

(1) EXTENSION OF PROGRAM.—Section 2011(c)(2) of the 

SAFETEA–LU (23 U.S.C. 405 note) is amended by striking 

‘‘fourth fiscal year’’ and inserting ‘‘fourth, fifth, and sixth fiscal 

years’’. 

(2) AUTHORIZATION OF APPROPRIATIONS.—Section 

2001(a)(10) of the SAFETEA–LU (119 Stat. 1520) is amended— 
H. R. 2847—16 

(A) by striking ‘‘and’’; and 

(B) by striking ‘‘2009.’’ and inserting ‘‘2009, $7,000,000 

for fiscal year 2010, and $1,750,000 for the period beginning 

on October 1, 2010, and ending on December 31, 2010.’’. 

(k) ADMINISTRATIVE EXPENSES.—Section 2001(a)(11) of the 

SAFETEA–LU (119 Stat. 1520) is amended— 

(1) by striking ‘‘and’’ the last place it appears; and 

(2) by striking ‘‘2009.’’ and inserting ‘‘2009, $25,047,000 

for fiscal year 2010, and $6,332,000 for the period beginning 

on October 1, 2010, and ending on December 31, 2010.’’. 

(l) APPLICABILITY OF TITLE 23.—Section 2001(c) of the 

SAFETEA–LU (119 Stat. 1520) is amended by striking ‘‘2009’’ and 

inserting ‘‘2011’’. 

(m) DRUG-IMPAIRED DRIVING ENFORCEMENT.—Section 2013(f) 

of the SAFETEA–LU (23 U.S.C. 403 note) is amended by striking 

‘‘2009’’ and inserting ‘‘2011’’. 

(n) OLDER DRIVER SAFETY; LAW ENFORCEMENT TRAINING.— 

Section 2017 of the SAFETEA–LU is amended— 

(1) in subsection (a)(1) (119 Stat. 1541), by striking ‘‘2009’’ 

and inserting ‘‘2011’’; and 

(2) in subsection (b)(2) (23 U.S.C. 402 note), by striking 

‘‘2009’’ and inserting ‘‘2011’’. 

SEC. 422. EXTENSION OF FEDERAL MOTOR CARRIER SAFETY ADMINISTRATION PROGRAMS. 

(a) MOTOR CARRIER SAFETY GRANTS.—Section 31104(a) of title 

49, United States Code, is amended— 

(1) in paragraph (4), by striking ‘‘and’’ at the end; 

(2) in paragraph (5), by striking the period at the end 

and inserting ‘‘; and’’; and 

(3) by adding at the end the following: 

‘‘(6) $209,000,000 for fiscal year 2010; and 

‘‘(7) $52,679,000 for the period beginning on October 1, 

2010, and ending on December 31, 2010.’’. 

(b) ADMINISTRATIVE EXPENSES.—Section 31104(i)(1) of title 49, 

United States Code, is amended— 

(1) in subparagraph (D), by striking ‘‘and’’; 

(2) in subparagraph (E), by striking the period at the 

end and inserting ‘‘; and’’; and 

(3) by adding at the end the following: ‘‘(F) ‘‘(F) $239,828,000 for fiscal year 2010; and 

‘‘(G) ‘‘(G) $61,036,000 for the period beginning on 

October 1, 2010, and ending on December 31, 2010.’’. 

(c) GRANT PROGRAMS.—Section 4101(c) of the SAFETEA–LU 

(119 Stat. 1715) is amended— 

(1) in paragraph (1), by striking ‘‘2009.’’ and inserting 

‘‘2009, and $25,000,000 for fiscal year 2010, and $6,301,000 

for the period beginning on October 1, 2010, and ending on 

December 31, 2010.’’; 

(2) in paragraph (2), by striking ‘‘2009.’’ and inserting 

‘‘2009, $32,000,000 for fiscal year 2010, and $8,066,000 for 

the period beginning on October 1, 2010, and ending on 

December 31, 2010.’’; 

(3) in paragraph (3), by striking ‘‘2009.’’ and inserting 

‘‘2009, $5,000,000 for fiscal year 2010, and $1,260,000 for the 

period beginning on October 1, 2010, and ending on December 

31, 2010.’’; 
H. R. 2847—17 

(4) in paragraph (4), by striking ‘‘2009.’’ and inserting 

‘‘2009, $25,000,000 for fiscal year 2010, and $6,301,000 for 

the period beginning on October 1, 2010, and ending on 

December 31, 2010.’’; and 

(5) in paragraph (5), by striking ‘‘2009.’’ and inserting 

‘‘2009, $3,000,000 for fiscal year 2010, and $756,000 for the 

period beginning on October 1, 2010, and ending on December 

31, 2010.’’. 

(d) HIGH-PRIORITY ACTIVITIES.—Section 31104(k) of title 49, 

United States Code, is amended by striking ‘‘2009’’ in paragraph 

(2) and inserting ‘‘2009, $15,000,000 for fiscal year 2010, and 

$3,781,000 for the period beginning on October 1, 2010, and ending 

on December 31, 2010’’. 

(e) NEW ENTRANT AUDITS.—Section 31144(g)(5)(B) of title 49, 

United States Code, is amended by inserting ‘‘(and up to $7,310,000 

for the period beginning on October 1, 2010, and ending on 

December 31, 2010)’’ after ‘‘fiscal year’’. 

(f) COMMERCIAL DRIVER’S LICENSE INFORMATION SYSTEM MODERNIZATION.—Section 4123(d) of the SAFETEA–LU (119 Stat. 1736) 

is amended— 

(1) in paragraph (3), by striking ‘‘and’’ at the end; 

(2) in paragraph (4), by striking the period at the end 

and inserting a semicolon; and 

(3) by adding at the end the following: 

‘‘(5) $8,000,000 for fiscal year 2010; and 

‘‘(6) $2,016,000 for the period beginning on October 1, 2010, 

and ending on December 31, 2010.’’. 

(g) OUTREACH AND EDUCATION.—Section 4127(e) of the 

SAFETEA–LU (119 Stat. 1741) is amended by striking ‘‘and 2009’’ 

and inserting ‘‘2009, and 2010, and $252,000 to the Federal Motor 

Carrier Safety Administration, and $756,000 to the National Highway Traffic Safety Administration, for the period beginning on 

October 1, 2010, and ending on December 31, 2010,’’. 

(h) GRANT PROGRAM FOR COMMERCIAL MOTOR VEHICLE OPERATORS.—Section 4134(c) of the SAFETEA–LU (119 Stat. 1744) is 

amended by striking ‘‘2009’’ and inserting ‘‘2009, 2010, and $252,000 

for the period beginning on October 1, 2010, and ending on 

December 31, 2010,’’. 

(i) MOTOR CARRIER SAFETY ADVISORY COMMITTEE.—Section 

4144(d) of the SAFETEA–LU (1119 Stat. 1748) is amended by 

striking ‘‘September 30, 2010’’ and inserting ‘‘December 31, 2010’’. 

(j) WORKING GROUP FOR DEVELOPMENT OF PRACTICES AND

PROCEDURES TO ENHANCE FEDERAL-STATE RELATIONS.—Section 

4213(d) of the SAFETEA–LU (49 U.S.C. 14710 note) is amended 

by striking ‘‘September 30, 2009’’ and inserting ‘‘December 31, 

2010’’. 

SEC. 423. ADDITIONAL PROGRAMS. 

(a) HAZARDOUS MATERIALS RESEARCH PROJECTS.—Section 

7131(c) of the SAFETEA–LU (119 Stat. 1910) is amended by 

striking ‘‘through 2009’’ and inserting ‘‘through 2010, and $315,000 

for the period beginning on October 1, 2010, and ending on 

December 31, 2010,’’. 

(b) DINGELL-JOHNSON SPORT FISH RESTORATION ACT.—Section 

4 of the Dingell-Johnson Sport Fish Restoration Act (16 U.S.C. 

777c) is amended— 
H. R. 2847—18 

(1) in subsection (a), in the matter preceding paragraph 

(1), by striking ‘‘2009,’’ and inserting ‘‘2010 and for the period 

beginning on October 1, 2010, and ending on December 31, 

2010,’’; and 

(2) in subsection (b)(1)(A), by striking ‘‘2010,’’ and inserting 

‘‘and for the period beginning on October 1, 2010, and ending 

on December 31, 2010,’’. 

Subtitle C—Public Transportation 

Programs 

SEC. 431. ALLOCATION OF FUNDS FOR PLANNING PROGRAMS. 

Section 5305(g) of title 49, United States Code, is amended 

by striking ‘‘2009’’ and inserting ‘‘2010, and for the period beginning 

October 1, 2010, and ending December 31, 2010,’’. 

SEC. 432. SPECIAL RULE FOR URBANIZED AREA FORMULA GRANTS. 

Section 5307(b)(2) of title 49, United States Code, is amended— 

(1) in the paragraph heading, by striking ‘‘2009’’ and 

inserting ‘‘2010, AND THE PERIOD BEGINNING OCTOBER 1, 2010, AND ENDING DECEMBER 31, 2010’’; 

(2) in subparagraph (A), by striking ‘‘2009,’’ and inserting 

‘‘2010, and the period beginning October 1, 2010, and ending 

December 31, 2010,’’; and 

(3) in subparagraph (E)— 

(A) in the subparagraph heading, by striking ‘‘AND

2009’’ and inserting ‘‘THROUGH 2010 AND DURING THE PERIOD

BEGINNING OCTOBER 1, 2010, AND ENDING DECEMBER 31, 2010’’; and 

(B) in the matter preceding clause (i), by striking ‘‘and 

2009’’ and inserting ‘‘through 2010, and during the period 

beginning October 1, 2010, and ending December 31, 

2010,’’. 

SEC. 433. ALLOCATING AMOUNTS FOR CAPITAL INVESTMENT GRANTS. 

Section 5309(m) of title 49, United States Code, is amended— 

(1) in paragraph (2)— 

(A) in the heading, by striking ‘‘2009’’ and inserting ‘‘2010 AND OCTOBER 1, 2010, THROUGH DECEMBER 31, 2010’’; 

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

striking ‘‘2009’’ and inserting ‘‘2010, and during the period 

beginning October 1, 2010, and ending December 31, 

2010,’’; and 

(C) in subparagraph (A)(i), by striking ‘‘2009’’ and inserting ‘‘2010, and $50,000,000 for the period beginning 

October 1, 2010, and ending December 31, 2010,’’; 

(2) in paragraph (6)— 

(A) in subparagraph (B), by striking ‘‘2009’’ and inserting ‘‘2010, and $3,750,000 shall be available for the 

period beginning October 1, 2010, and ending December 

31, 2010,’’; and 

(B) in subparagraph (C), by striking ‘‘2009’’ and inserting ‘‘2010, and $1,250,000 shall be available for the 

period beginning October 1, 2010 and ending December 

31, 2010,’’; and 

(3) in paragraph (7)— 
H. R. 2847—19 

(A) in subparagraph (A)— 

(i) by redesignating clauses (i) through (viii) as 

subclauses (I) through (VIII), respectively; 

(ii) in the matter preceding subclause (I), as so 

redesignated, by striking ‘‘$10,000,000’’ and all that 

follows through ‘‘2009’’ and inserting the following: 

‘‘(i) FISCAL YEARS 2006 THROUGH 2010.—$10,000,000 

shall be available in each of fiscal years 2006 through 

2010’’; and 

(iii) by inserting after subclause (VIII), as so 

redesignated, the following: 

‘‘(ii) SPECIAL RULE FOR OCTOBER 1, 2010, THROUGH

DECEMBER 31, 2010.—$2,500,000 shall be available in 

the period beginning October 1, 2010, and ending 

December 31, 2010, for ferry boats or ferry terminal 

facilities. The Secretary shall set aside a portion of 

such amount in accordance with clause (i), except that 

the Secretary shall set aside 25 percent of each dollar 

amount specified in subclauses (I) through (VIII).’’;’’. 

(B) in subparagraph (B), by inserting after ‘‘2009.’’ 

the following: 

‘‘(v) $13,500,000 for fiscal year 2010. 

‘‘(vi) $3,375,000 for the period beginning October 

1, 2010, and ending December 31, 2010.’’; 

(C) in subparagraph (C), by inserting ‘‘, and during 

the period beginning October 1, 2010, and ending December 

31, 2010,’’ after ‘‘fiscal year’’; 

(D) in subparagraph (D), by inserting ‘‘, and not less 

than $8,750,000 shall be available for the period beginning 

October 1, 2010, and ending December 31, 2010,’’ after 

‘‘year’’; and 

(E) in subparagraph (E), by inserting ‘‘, and $750,000 

shall be available for the period beginning October 1, 2010, 

and ending December 31, 2010,’’ after ‘‘year’’. 

SEC. 434. APPORTIONMENT OF FORMULA GRANTS FOR OTHER THAN 

URBANIZED AREAS. 

Section 5311(c)(1) of title 49, United States Code, is amended 

by adding at the end the following: 

‘‘(E) $15,000,000 for fiscal year 2010. 

‘‘(F) $3,750,000 for the period beginning October 1, 

2010, and ending December 31, 2010.’’. 

SEC. 435. APPORTIONMENT BASED ON FIXED GUIDEWAY FACTORS. 

Section 5337 of title 49, United States Code, is amended— 

(1) in subsection (a), in the matter preceding paragraph 

(1), by striking ‘‘2009’’ and inserting ‘‘2010’’; and 

(2) by adding at the end the following: 

‘‘(g) SPECIAL RULE FOR OCTOBER 1, 2010, THROUGH DECEMBER

31, 2010.—The Secretary shall apportion amounts made available 

for fixed guideway modernization under section 5309 for the period 

beginning October 1, 2010, and ending December 31, 2010, in 

accordance with subsection (a), except that the Secretary shall 

apportion 25 percent of each dollar amount specified in subsection 

(a).’’. 
H. R. 2847—20 

SEC. 436. AUTHORIZATIONS FOR PUBLIC TRANSPORTATION. 

(a) FORMULA AND BUS GRANTS.—Section 5338(b) of title 49, 

United States Code, is amended— 

(1) in paragraph (1)— 

(A) in subparagraph (C), by striking ‘‘and’’ at the end; 

(B) in subparagraph (D), by striking the period at 

the end and inserting a semicolon; and 

(C) by adding at the end the following: 

‘‘(E) $8,360,565,000 for fiscal year 2010; and 

‘‘(F) $2,090,141,250 for the period beginning October 

1, 2010, and ending December 31, 2010.’’; and 

(2) in paragraph (2)— (A) in subparagraph (A), by striking ‘‘and $113,500,000 for fiscal year 2009’’ and inserting ‘‘$113,500,000 for each 

of fiscal years 2009 and 2010, and $28,375,000 for the 

period beginning October 1, 2010, and ending December 

31, 2010,’’; 

(B) in subparagraph (B), by striking ‘‘and $4,160,365,000 for fiscal year 2009’’ and inserting 

‘‘$4,160,365,000 for each of fiscal years 2009 and 2010, 

and $1,040,091,250 for the period beginning October 1, 

2010, and ending December 31, 2010,’’; 

(C) in subparagraph (C), by striking ‘‘and $51,500,000 

for fiscal year 2009’’ and inserting ‘‘$51,500,000 for each 

of fiscal years 2009 and 2010, and $12,875,000 for the 

period beginning October 1, 2010, and ending December 

31, 2010,’’; 

(D) in subparagraph (D), by striking ‘‘and $1,666,500,000 for fiscal year 2009’’ and inserting 

‘‘$1,666,500,000 for each of fiscal years 2009 and 2010, 

and $416,625,000 for the period beginning October 1, 2010 

and ending December 31, 2010,’’; (E) in subparagraph (E), by striking ‘‘and $984,000,000 for fiscal year 2009’’ and inserting ‘‘$984,000,000 for each 

of fiscal years 2009 and 2010, and $246,000,000 for the 

period beginning October 1, 2010 and ending December 

31, 2010,’’; 

(F) in subparagraph (F), by striking ‘‘and $133,500,000 for fiscal year 2009’’ and inserting ‘‘$133,500,000 for each 

of fiscal years 2009 and 2010, and $33,375,000 for the 

period beginning October 1, 2010 and ending December 

31, 2010,’’; 

(G) in subparagraph (G), by striking ‘‘and $465,000,000 for fiscal year 2009’’ and inserting ‘‘$465,000,000 for each 

of fiscal years 2009 and 2010, and $116,250,000 for the 

period beginning October 1, 2010 and ending December 

31, 2010,’’; 

(H) in subparagraph (H), by striking ‘‘and $164,500,000 for fiscal year 2009’’ and inserting ‘‘$164,500,000 for each 

of fiscal years 2009 and 2010, and $41,125,000 for the 

period beginning October 1, 2010 and ending December 

31, 2010,’’; 

(I) in subparagraph (I), by striking ‘‘and $92,500,000 for fiscal year 2009’’ and inserting ‘‘$92,500,000 for each 

of fiscal years 2009 and 2010, and $23,125,000 for the 

period beginning October 1, 2010 and ending December 

31, 2010,’’; 
H. R. 2847—21 

(J) in subparagraph (J), by striking ‘‘and $26,900,000 

for fiscal year 2009’’ and inserting ‘‘$26,900,000 for each 

of fiscal years 2009 and 2010, and $6,725,000 for the period 

beginning October 1, 2010 and ending December 31, 2010,’’; 

(K) in subparagraph (K), by striking ‘‘and $3,500,000 

for fiscal year 2009’’ and inserting ‘‘$3,500,000 for each 

of fiscal years 2009 and 2010, and $875,000 for the period 

beginning October 1, 2010 and ending December 31, 2010,’’; 

(L) in subparagraph (L), by striking ‘‘and $25,000,000 

for fiscal year 2009’’ and inserting ‘‘$25,000,000 for each 

of fiscal years 2009 and 2010, and $6,250,000 for the period 

beginning October 1, 2010 and ending December 31, 2010,’’; 

(M) in subparagraph (M), by striking ‘‘and 

$465,000,000 for fiscal year 2009’’ and inserting 

‘‘$465,000,000 for each of fiscal years 2009 and 2010, and 

$116,250,000 for the period beginning October 1, 2010 and 

ending December 31, 2010,’’; and 

(N) in subparagraph (N), by striking ‘‘and $8,800,000 

for fiscal year 2009’’ and inserting ‘‘$8,800,000 for each 

of fiscal years 2009 and 2010, and $2,200,000 for the period 

beginning October 1, 2010 and ending December 31, 2010,’’. 

(b) CAPITAL INVESTMENT GRANTS.—Section 5338(c) of title 49, 

United States Code, is amended— 

(1) in paragraph (3), by striking ‘‘and’’ at the end; 

(2) in paragraph (4), by striking the period at the end 

and inserting a semicolon; and 

(3) by adding at the end the following: 

‘‘(5) $2,000,000,000 for fiscal year 2010; and 

‘‘(6) $500,000,000 for the period of October 1, 2010 through 

December 31, 2010.’’. 

(c) RESEARCH AND UNIVERSITY RESEARCH CENTERS.—Section 

5338(d) of title 49, United States Code, is amended— 

(1) in paragraph (1), in the matter preceding subparagraph 

(A), by striking ‘‘and $69,750,000 for fiscal year 2009’’ and 

inserting ‘‘$69,750,000 for each of fiscal years 2009 and 2010, 

and $17,437,500 for the period beginning October 1, 2010, 

and ending December 31, 2010’’; and 

(2) by adding at the end the following: 

‘‘(3) ADDITIONAL AUTHORIZATIONS.— 

‘‘(A) IN GENERAL.— 

‘‘(i) FISCAL YEAR 2010.—Of amounts authorized to 

be appropriated for fiscal year 2010 under paragraph 

(1), the Secretary shall allocate for each of the activities 

and projects described in subparagraphs (A) through 

(F) of paragraph (1) an amount equal to the amount 

allocated for fiscal year 2009 under each such subparagraph. 

‘‘(ii) OCTOBER 1, 2010 THROUGH DECEMBER 31, 2010.— 

Of amounts authorized to be appropriated for the 

period beginning October 1, 2010, through December 

31, 2010, under paragraph (1), the Secretary shall 

allocate for each of the activities and projects described 

in subparagraphs (A) through (F) of paragraph (1) 

an amount equal to 25 percent of the amount allocated 

for fiscal year 2009 under each such subparagraph. 

‘‘(B) UNIVERSITY CENTERS PROGRAM.— 
H. R. 2847—22 

‘‘(i) FISCAL YEAR 2010.—Of the amounts allocated 

under subparagraph (A)(i) for the university centers 

program under section 5506 for fiscal year 2010, the 

Secretary shall allocate for each program described 

in clauses (i) through (iii) and (v) through (viii) of 

paragraph (2)(A) an amount equal to the amount allocated for fiscal year 2009 under each such clause. 

‘‘(ii) OCTOBER 1, 2010 THROUGH DECEMBER 31, 2010.— 

Of the amounts allocated under subparagraph (A)(i) 

for the university centers program under section 5506 

for the period beginning October 1, 2010, and ending 

December 31, 2010, the Secretary shall allocate for 

each program described in clauses (i) through (iii) and 

(v) through (viii) of paragraph (2)(A) an amount equal 

to 25 percent of the amount allocated for fiscal year 

2009 under each such clause. 

‘‘(iii) FUNDING.—If the Secretary determines that 

a project or activity described in paragraph (2) received 

sufficient funds in fiscal year 2009, or a previous fiscal 

year, to carry out the purpose for which the project 

or activity was authorized, the Secretary may not allocate any amounts under clause (i) or (ii) for the project 

or activity for fiscal year 2010, or any subsequent 

fiscal year.’’. 

(d) ADMINISTRATION.—Section 5338(e) of title 49, United States 

Code, is amended— 

(1) in paragraph (3), by striking ‘‘and’’ at the end; 

(2) in paragraph (4), by striking the period at the end 

and inserting a semicolon; and 

(3) by adding at the end the following: 

‘‘(5) $98,911,000 for fiscal year 2010; and 

‘‘(6) $24,727,750 for the period beginning October 1, 2010, 

and ending December 31, 2010.’’. 

SEC. 437. AMENDMENTS TO SAFETEA–LU. 

(a) CONTRACTED PARATRANSIT PILOT.—Section 3009(i)(1) of the 

SAFETEA–LU (Public Law 109–59; 119 Stat. 1572) is amended 

by striking ‘‘2009’’ and inserting ‘‘2010, and for the period beginning 

October 1, 2010, and ending December 31, 2010’’. 

(b) PUBLIC-PRIVATE PARTNERSHIP PILOT PROGRAM.—Section 

3011 of the SAFETEA–LU (49 U.S.C. 5309 note) is amended— 

(1) in subsection (c)(5), by striking ‘‘2009’’ and inserting 

‘‘2010 and the period beginning October 1, 2010, and ending 

December 31, 2010’’; and 

(2) in subsection (d), by striking ‘‘2009’’ and inserting ‘‘2010, 

and for the period beginning October 1, 2010, and ending 

December 31, 2010’’. 

(c) ELDERLY INDIVIDUALS AND INDIVIDUALS WITH DISABILITIES

PILOT PROGRAM.—Section 3012(b)(8) of the SAFETEA–LU (49 

U.S.C. 5310 note) is amended by striking ‘‘September 30, 2009’’ 

and inserting ‘‘December 31, 2010’’. 

(d) OBLIGATION CEILING.—Section 3040 of the SAFETEA–LU 

(Public Law 109–59; 119 Stat. 1639) is amended— 

(1) in paragraph (4), by striking ‘‘and’’ at the end; 

(2) in paragraph (5), by striking the period at the end 

and inserting a semicolon; and 

(3) by adding at the end the following: 
H. R. 2847—23 

‘‘(6) $10,507,752,000 for fiscal year 2010, of which not more 

than $8,360,565,000 shall be from the Mass Transit Account; 

and 

‘‘(7) $2,626,938,000 for the period beginning October 1, 

2010, and ending December 31, 2010, of which not more than 

$2,090,141,250 shall be from the Mass Transit Account.’’. 

(e) PROJECT AUTHORIZATIONS FOR NEW FIXED GUIDEWAY CAPITAL PROJECTS.—Section 3043 of the SAFETEA–LU (Public Law 

109–59; 119 Stat. 1640) is amended— 

(1) in subsection (b), in the matter preceding paragraph 

(1), by striking ‘‘2009’’ and inserting ‘‘2010, and for the period 

beginning October 1, 2010, and ending December 31, 2010,’’; 

and 

(2) in subsection (c), in the matter preceding paragraph 

(1), by striking ‘‘2009’’ and inserting ‘‘2010, and for the period 

beginning October 1, 2010, and ending December 31, 2010,’’. 

(f) ALLOCATIONS FOR NATIONAL RESEARCH AND TECHNOLOGY

PROGRAMS.—Section 3046 of the SAFETEA–LU (49 U.S.C. 5338 

note) is amended— 

(1) in subsection (b), by inserting ‘‘or period’’ after ‘‘fiscal 

year’’; and 

(2) by adding at the end the following: 

‘‘(c) ADDITIONAL APPROPRIATIONS.—The Secretary shall allocate 

amounts appropriated pursuant to section 5338(d) of title 49, United 

States Code, for national research and technology programs under 

sections 5312, 5314, and 5322 of such title— 

‘‘(1) for fiscal year 2010, in amounts equal to the amounts 

allocated for fiscal year 2009 under each of paragraphs (2), 

(3), (5), (6), and (8) through (25) of subsection (a); and 

‘‘(2) for the period beginning October 1, 2010, and ending 

December 31, 2010, in amounts equal to 25 percent of the 

amounts allocated for fiscal year 2009 under each of paragraphs 

(2), (3), (5), (6), and (8) through (25) of subsection (a). 

‘‘(d) FUNDING.—If the Secretary determines that a project or 

activity described in subsection (a) received sufficient funds in fiscal 

year 2009, or a previous fiscal year, to carry out the purpose 

for which the project or activity was authorized, the Secretary 

may not allocate any amounts under subsection (c) for the project 

or activity for fiscal year 2010, or any subsequent fiscal year.’’. 

Subtitle D—Revenue Provisions 

SEC. 441. REPEAL OF PROVISION PROHIBITING THE CREDITING OF 

INTEREST TO THE HIGHWAY TRUST FUND. 

(a) IN GENERAL.—Paragraph (1) of section 9503(f) is amended 

by striking subparagraph (B). 

(b) CONFORMING AMENDMENTS.—Such paragraph, as amended 

by paragraph (1), is further amended— 

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

and inserting a period; and 

(2) by striking ‘‘1998’’ in the matter preceding subparagraph 

(A) and all that follows through ‘‘the opening balance’’ and 

inserting ‘‘1998, the opening balance’’. 

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

shall take effect on the date of the enactment of this title. 
H. R. 2847—24 

SEC. 442. RESTORATION OF CERTAIN FOREGONE INTEREST TO HIGHWAY TRUST FUND. 

(a) IN GENERAL.—Paragraph (2) of section 9503(f) is amended 

to read as follows: 

‘‘(2) RESTORATION OF FOREGONE INTEREST.—Out of money 

in the Treasury not otherwise appropriated, there is hereby 

appropriated— ‘‘(A) $14,700,000,000 to the Highway Account (as 

defined in subsection (e)(5)(B)) in the Highway Trust Fund; 

and 

‘‘(B) $4,800,000,000 to the Mass Transit Account in 

the Highway Trust Fund.’’. 

(b) CONFORMING AMENDMENT.—Paragraph (1) of section 9503(e) 

is amended by striking ‘‘this subsection’’ and inserting ‘‘this section’’. 

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

shall take effect on the date of the enactment of this Act. 

SEC. 443. TREATMENT OF CERTAIN AMOUNTS APPROPRIATED TO 

HIGHWAY TRUST FUND. 

(a) IN GENERAL.—Section 9503(f), as amended by this Act, 

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

‘‘(4) TREATMENT OF APPROPRIATED AMOUNTS.—Any amount 

appropriated under this subsection to the Highway Trust Fund 

shall remain available without fiscal year limitation.’’. 

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

shall take effect on the date of the enactment of this Act. 

SEC. 444. TERMINATION OF TRANSFERS FROM HIGHWAY TRUST FUND 

FOR CERTAIN REPAYMENTS AND CREDITS. 

(a) IN GENERAL.—Section 9503(c) is amended by striking paragraph (2) and by redesignating paragraphs (3), (4), (5), and (6) 

as paragraphs (2), (3), (4), and (5), respectively. 

(b) CONFORMING AMENDMENTS.— (1) Section 9502(a) is amended by striking ‘‘section 

9503(c)(7)’’ and inserting ‘‘section 9503(c)(5)’’. 

(2) Section 9503(b)(4)(D) is amended by striking ‘‘paragraph 

(4)(D) or (5)(B)’’ and inserting ‘‘paragraph (3)(D) or (4)(B)’’. 

(3) Paragraph (2) of section 9503(c), as redesignated by 

subsection (a), is amended by adding at the end the following 

new sentence: ‘‘The amounts payable from the Highway Trust 

Fund under the preceding sentence shall be determined by 

taking into account only the portion of the taxes which are 

deposited into the Highway Trust Fund.’’. 

(4) Section 9503(e)(5)(A) is amended by striking ‘‘(2), (3), 

and (4)’’ and inserting ‘‘(2) and (3)’’. 

(5) Section 9504(a) is amended by striking ‘‘section 

9503(c)(4), section 9503(c)(5)’’ and inserting ‘‘section 9503(c)(3), 

section 9503(c)(4)’’. 

(6) Section 9504(b)(2) is amended by striking ‘‘section 

9503(c)(5)’’ and inserting ‘‘section 9503(c)(4)’’. 

(7) Section 9504(e) is amended by striking ‘‘section 

9503(c)(4)’’ and inserting section ‘‘9503(c)(3)’’. 

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

shall apply to transfers relating to amounts paid and credits allowed 

after the date of the enactment of this Act. 

SEC. 445. EXTENSION OF AUTHORITY FOR EXPENDITURES. 

(a) HIGHWAYS TRUST FUND.— 
H. R. 2847—25 

(1) HIGHWAY ACCOUNT.—Paragraph (1) of section 9503(c) 

is amended— 

(A) by striking ‘‘September 30, 2009 (October 1, 2009’’ 

and inserting ‘‘December 31, 2010 (January 1, 2011’’; and 

(B) by striking ‘‘under’’ and all that follows and 

inserting ‘‘under the Surface Transportation Extension Act 

of 2010 or any other provision of law which was referred 

to in this paragraph before the date of the enactment 

of such Act (as such Act and provisions of law are in 

effect on the date of the enactment of such Act).’’. 

(2) MASS TRANSIT ACCOUNT.—Paragraph (3) of section 

9503(e) is amended— 

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

‘‘January 1, 2011’’; and 

(B) by striking ‘‘in accordance with’’ and all that follows 

and inserting ‘‘in accordance with the Surface Transportation Extension Act of 2010 or any other provision of 

law which was referred to in this paragraph before the 

date of the enactment of such Act (as such Act and provisions of law are in effect on the date of the enactment 

of such Act).’’. 

(3) EXCEPTION TO LIMITATION ON TRANSFERS.—Subparagraph (B) of section 9503(b)(6) is amended by striking ‘‘September 30, 2009 (October 1, 2009’’ and inserting ‘‘December 

31, 2010 (January 1, 2011’’. 

(b) SPORT FISH RESTORATION AND BOATING TRUST FUND.— 

(1) IN GENERAL.—Paragraph (2) of section 9504(b) is 

amended— 

(A) by striking ‘‘(as in effect’’ in subparagraph (A) 

and all that follows in such subparagraph and inserting 

‘‘(as in effect on the date of the enactment of the Surface 

Transportation Extension Act of 2010),’’, 

(B) by striking ‘‘(as in effect’’ in subparagraph (B) 

and all that follows in such subparagraph and inserting 

‘‘(as in effect on the date of the enactment of the Surface 

Transportation Extension Act of 2010), and’’, and 

(C) by striking ‘‘(as in effect’’ in subparagraph (C) 

and all that follows in such subparagraph and inserting 

‘‘(as in effect on the date of the enactment of the Surface 

Transportation Extension Act of 2010).’’. 

(2) EXCEPTION TO LIMITATION ON TRANSFERS.—Paragraph 

(2) of section 9504(d) is amended by striking ‘‘October 1, 2009’’ 

and inserting ‘‘January 1, 2011’’. 

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

shall take effect on September 30, 2009. 

SEC. 446. LEVEL OF OBLIGATION LIMITATIONS. 

(a) HIGHWAY CATEGORY.—Section 8003(a) of the SAFETEA– 

LU (2 U.S.C. 901 note; 119 Stat. 1917) is amended— 

(1) in paragraph (4), by striking ‘‘and’’ at the end; 

(2) in paragraph (5), by striking the period at the end 

and inserting ‘‘; and’’; and 

(3) by adding at the end the following: 

‘‘(6) for the period beginning on October 1, 2009, and ending on September 30, 2010, $42,469,970,178. 

‘‘(7) for the period beginning on October 1, 2010, and ending on December 31, 2010, $10,617,492,545.’’. 
H. R. 2847—26 

(b) MASS TRANSIT CATEGORY.—Section 8003(b) of the 

SAFETEA–LU (2 U.S.C. 901 note; 119 Stat. 1917) is amended— 

(1) in paragraph (4), by striking ‘‘and’’ at the end; 

(2) in paragraph (5), by striking the period at the end 

and inserting ‘‘; and’’; and 

(3) by adding at the end the following: 

‘‘(6) for the period beginning on October 1, 2009, and ending on December 31, 2010, $10,338,065,000. 

‘‘(7) for the period beginning on October 1, 2010, and ending on December 31, 2010, $2,584,516,250.’’. 

(c) TREATMENT OF FUNDS.—No adjustment pursuant to section 

110 of title 23, United States Code, shall be made for fiscal year 

2010 or fiscal year 2011. 

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 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 
H. R. 2847—27 

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. 

TITLE V—OFFSET PROVISIONS 

Subtitle A—Foreign Account Tax 

Compliance 

PART I—INCREASED DISCLOSURE OF 

BENEFICIAL OWNERS 

SEC. 501. REPORTING ON CERTAIN FOREIGN ACCOUNTS. 

(a) IN GENERAL.—The Internal Revenue Code of 1986 is 

amended by inserting after chapter 3 the following new chapter: 

‘‘CHAPTER 4—TAXES TO ENFORCE REPORTING ON 

CERTAIN FOREIGN ACCOUNTS 

‘‘Sec. 1471. Withholdable payments to foreign financial institutions. 

‘‘Sec. 1472. Withholdable payments to other foreign entities. 

‘‘Sec. 1473. Definitions. 

‘‘Sec. 1474. Special rules. 

‘‘SEC. 1471. WITHHOLDABLE PAYMENTS TO FOREIGN FINANCIAL 

INSTITUTIONS. 

‘‘(a) IN GENERAL.—In the case of any withholdable payment 

to a foreign financial institution which does not meet the requirements of subsection (b), the withholding agent with respect to 

such payment shall deduct and withhold from such payment a 

tax equal to 30 percent of the amount of such payment. 

‘‘(b) REPORTING REQUIREMENTS, ETC.— 

‘‘(1) IN GENERAL.—The requirements of this subsection are 

met with respect to any foreign financial institution if an agreement is in effect between such institution and the Secretary 

under which such institution agrees— 

‘‘(A) to obtain such information regarding each holder 

of each account maintained by such institution as is necessary to determine which (if any) of such accounts are 

United States accounts, 

‘‘(B) to comply with such verification and due diligence 

procedures as the Secretary may require with respect to 

the identification of United States accounts, 

‘‘(C) in the case of any United States account maintained by such institution, to report on an annual basis 
H. R. 2847—28 

the information described in subsection (c) with respect 

to such account, 

‘‘(D) to deduct and withhold a tax equal to 30 percent 

of— 

‘‘(i) any passthru payment which is made by such 

institution to a recalcitrant account holder or another 

foreign financial institution which does not meet the 

requirements of this subsection, and 

‘‘(ii) in the case of any passthru payment which 

is made by such institution to a foreign financial 

institution which has in effect an election under paragraph (3) with respect to such payment, so much of 

such payment as is allocable to accounts held by recalcitrant account holders or foreign financial institutions 

which do not meet the requirements of this subsection, 

‘‘(E) to comply with requests by the Secretary for additional information with respect to any United States 

account maintained by such institution, and 

‘‘(F) in any case in which any foreign law would (but 

for a waiver described in clause (i)) prevent the reporting 

of any information referred to in this subsection or subsection (c) with respect to any United States account maintained by such institution— 

‘‘(i) to attempt to obtain a valid and effective 

waiver of such law from each holder of such account, 

and 

‘‘(ii) if a waiver described in clause (i) is not 

obtained from each such holder within a reasonable 

period of time, to close such account. 

Any agreement entered into under this subsection may be 

terminated by the Secretary upon a determination by the Secretary that the foreign financial institution is out of compliance 

with such agreement. 

‘‘(2) FINANCIAL INSTITUTIONS DEEMED TO MEET REQUIREMENTS IN CERTAIN CASES.—A foreign financial institution may 

be treated by the Secretary as meeting the requirements of 

this subsection if— 

‘‘(A) such institution— 

‘‘(i) complies with such procedures as the Secretary 

may prescribe to ensure that such institution does 

not maintain United States accounts, and 

‘‘(ii) meets such other requirements as the Secretary may prescribe with respect to accounts of other 

foreign financial institutions maintained by such 

institution, or 

‘‘(B) such institution is a member of a class of institutions with respect to which the Secretary has determined 

that the application of this section is not necessary to 

carry out the purposes of this section. 

‘‘(3) ELECTION TO BE WITHHELD UPON RATHER THAN WITHHOLD ON PAYMENTS TO RECALCITRANT ACCOUNT HOLDERS AND

NONPARTICIPATING FOREIGN FINANCIAL INSTITUTIONS.—In the 

case of a foreign financial institution which meets the requirements of this subsection and such other requirements as the 

Secretary may provide and which elects the application of this 

paragraph— 
H. R. 2847—29 

‘‘(A) the requirements of paragraph (1)(D) shall not 

apply, 

‘‘(B) the withholding tax imposed under subsection (a) 

shall apply with respect to any withholdable payment to 

such institution to the extent such payment is allocable 

to accounts held by recalcitrant account holders or foreign 

financial institutions which do not meet the requirements 

of this subsection, and 

‘‘(C) the agreement described in paragraph (1) shall— 

‘‘(i) require such institution to notify the withholding agent with respect to each such payment of 

the institution’s election under this paragraph and 

such other information as may be necessary for the 

withholding agent to determine the appropriate 

amount to deduct and withhold from such payment, 

and 

‘‘(ii) include a waiver of any right under any treaty 

of the United States with respect to any amount 

deducted and withheld pursuant to an election under 

this paragraph. 

To the extent provided by the Secretary, the election under 

this paragraph may be made with respect to certain classes 

or types of accounts of the foreign financial institution. 

‘‘(c) INFORMATION REQUIRED TO BE REPORTED ON UNITED

STATES ACCOUNTS.— 

‘‘(1) IN GENERAL.—The agreement described in subsection 

(b) shall require the foreign financial institution to report the 

following with respect to each United States account maintained 

by such institution: 

‘‘(A) The name, address, and TIN of each account holder 

which is a specified United States person and, in the case 

of any account holder which is a United States owned 

foreign entity, the name, address, and TIN of each substantial United States owner of such entity. 

‘‘(B) The account number. 

‘‘(C) The account balance or value (determined at such 

time and in such manner as the Secretary may provide). 

‘‘(D) Except to the extent provided by the Secretary, 

the gross receipts and gross withdrawals or payments from 

the account (determined for such period and in such 

manner as the Secretary may provide). 

‘‘(2) ELECTION TO BE SUBJECT TO SAME REPORTING AS

UNITED STATES FINANCIAL INSTITUTIONS.—In the case of a foreign financial institution which elects the application of this 

paragraph— 

‘‘(A) subparagraphs (C) and (D) of paragraph (1) shall 

not apply, and 

‘‘(B) the agreement described in subsection (b) shall 

require such foreign financial institution to report such 

information with respect to each United States account 

maintained by such institution as such institution would 

be required to report under sections 6041, 6042, 6045, 

and 6049 if— 

‘‘(i) such institution were a United States person, 

and 
H. R. 2847—30 

‘‘(ii) each holder of such account which is a specified United States person or United States owned foreign entity were a natural person and citizen of the 

United States. 

An election under this paragraph shall be made at such 

time, in such manner, and subject to such conditions as 

the Secretary may provide. 

‘‘(3) SEPARATE REQUIREMENTS FOR QUALIFIED INTERMEDIARIES.—In the case of a foreign financial institution which 

is treated as a qualified intermediary by the Secretary for 

purposes of section 1441 and the regulations issued thereunder, 

the requirements of this section shall be in addition to any 

reporting or other requirements imposed by the Secretary for 

purposes of such treatment. 

‘‘(d) DEFINITIONS.—For purposes of this section— 

‘‘(1) UNITED STATES ACCOUNT.— 

‘‘(A) IN GENERAL.—The term ‘United States account’ 

means any financial account which is held by one or more 

specified United States persons or United States owned 

foreign entities. 

‘‘(B) EXCEPTION FOR CERTAIN ACCOUNTS HELD BY

INDIVIDUALS.—Unless the foreign financial institution 

elects to not have this subparagraph apply, such term 

shall not include any depository account maintained by 

such financial institution if— 

‘‘(i) each holder of such account is a natural person, 

and 

‘‘(ii) with respect to each holder of such account, 

the aggregate value of all depository accounts held 

(in whole or in part) by such holder and maintained 

by the same financial institution which maintains such 

account does not exceed $50,000. 

To the extent provided by the Secretary, financial institutions which are members of the same expanded affiliated 

group shall be treated for purposes of clause (ii) as a 

single financial institution. 

‘‘(C) ELIMINATION OF DUPLICATIVE REPORTING REQUIRE- MENTS.—Such term shall not include any financial account 

in a foreign financial institution if— 

‘‘(i) such account is held by another financial 

institution which meets the requirements of subsection 

(b), or 

‘‘(ii) the holder of such account is otherwise subject 

to information reporting requirements which the Secretary determines would make the reporting required 

by this section with respect to United States accounts 

duplicative. 

‘‘(2) FINANCIAL ACCOUNT.—Except as otherwise provided 

by the Secretary, the term ‘financial account’ means, with 

respect to any financial institution— 

‘‘(A) any depository account maintained by such financial institution, 

‘‘(B) any custodial account maintained by such financial 

institution, and 

‘‘(C) any equity or debt interest in such financial 

institution (other than interests which are regularly traded 

on an established securities market). 
H. R. 2847—31 

Any equity or debt interest which constitutes a financial 

account under subparagraph (C) with respect to any financial 

institution shall be treated for purposes of this section as maintained by such financial institution. 

‘‘(3) UNITED STATES OWNED FOREIGN ENTITY.—The term 

‘United States owned foreign entity’ means any foreign entity 

which has one or more substantial United States owners. 

‘‘(4) FOREIGN FINANCIAL INSTITUTION.—The term ‘foreign 

financial institution’ means any financial institution which is 

a foreign entity. Except as otherwise provided by the Secretary, 

such term shall not include a financial institution which is 

organized under the laws of any possession of the United States. 

‘‘(5) FINANCIAL INSTITUTION.—Except as otherwise provided 

by the Secretary, the term ‘financial institution’ means any 

entity that— 

‘‘(A) accepts deposits in the ordinary course of a 

banking or similar business, 

‘‘(B) as a substantial portion of its business, holds 

financial assets for the account of others, or 

‘‘(C) is engaged (or holding itself out as being engaged) 

primarily in the business of investing, reinvesting, or 

trading in securities (as defined in section 475(c)(2) without 

regard to the last sentence thereof), partnership interests, 

commodities (as defined in section 475(e)(2)), or any interest 

(including a futures or forward contract or option) in such 

securities, partnership interests, or commodities. 

‘‘(6) RECALCITRANT ACCOUNT HOLDER.—The term ‘recalcitrant account holder’ means any account holder which— 

‘‘(A) fails to comply with reasonable requests for the 

information referred to in subsection (b)(1)(A) or (c)(1)(A), 

or 

‘‘(B) fails to provide a waiver described in subsection 

(b)(1)(F) upon request. 

‘‘(7) PASSTHRU PAYMENT.—The term ‘passthru payment’ 

means any withholdable payment or other payment to the 

extent attributable to a withholdable payment. 

‘‘(e) AFFILIATED GROUPS.— ‘‘(1) IN GENERAL.—The requirements of subsections (b) and 

(c)(1) shall apply— 

‘‘(A) with respect to United States accounts maintained 

by the foreign financial institution, and 

‘‘(B) except as otherwise provided by the Secretary, 

with respect to United States accounts maintained by each 

other foreign financial institution (other than any foreign 

financial institution which meets the requirements of subsection (b)) which is a member of the same expanded affiliated group as such foreign financial institution. 

‘‘(2) EXPANDED AFFILIATED GROUP.—For purposes of this 

section, the term ‘expanded affiliated group’ means an affiliated 

group as defined in section 1504(a), determined— 

‘‘(A) by substituting ‘more than 50 percent’ for ‘at least 

80 percent’ each place it appears, and 

‘‘(B) without regard to paragraphs (2) and (3) of section 

1504(b). 

A partnership or any other entity (other than a corporation) 

shall be treated as a member of an expanded affiliated group 

if such entity is controlled (within the meaning of section 
H. R. 2847—32 

954(d)(3)) by members of such group (including any entity 

treated as a member of such group by reason of this sentence). 

‘‘(f) EXCEPTION FOR CERTAIN PAYMENTS.—Subsection (a) shall 

not apply to any payment to the extent that the beneficial owner 

of such payment is— 

‘‘(1) any foreign government, any political subdivision of 

a foreign government, or any wholly owned agency or 

instrumentality of any one or more of the foregoing, 

‘‘(2) any international organization or any wholly owned 

agency or instrumentality thereof, 

‘‘(3) any foreign central bank of issue, or 

‘‘(4) any other class of persons identified by the Secretary 

for purposes of this subsection as posing a low risk of tax 

evasion. 

‘‘SEC. 1472. WITHHOLDABLE PAYMENTS TO OTHER FOREIGN ENTITIES. 

‘‘(a) IN GENERAL.—In the case of any withholdable payment 

to a non-financial foreign entity, if— 

‘‘(1) the beneficial owner of such payment is such entity 

or any other non-financial foreign entity, and 

‘‘(2) the requirements of subsection (b) are not met with 

respect to such beneficial owner, 

then the withholding agent with respect to such payment shall 

deduct and withhold from such payment a tax equal to 30 percent 

of the amount of such payment. 

‘‘(b) REQUIREMENTS FOR WAIVER OF WITHHOLDING.—The 

requirements of this subsection are met with respect to the beneficial owner of a payment if— 

‘‘(1) such beneficial owner or the payee provides the withholding agent with either— 

‘‘(A) a certification that such beneficial owner does 

not have any substantial United States owners, or 

‘‘(B) the name, address, and TIN of each substantial 

United States owner of such beneficial owner, 

‘‘(2) the withholding agent does not know, or have reason 

to know, that any information provided under paragraph (1) 

is incorrect, and 

‘‘(3) the withholding agent reports the information provided 

under paragraph (1)(B) to the Secretary in such manner as 

the Secretary may provide. 

‘‘(c) EXCEPTIONS.—Subsection (a) shall not apply to— 

‘‘(1) except as otherwise provided by the Secretary, any 

payment beneficially owned by— 

‘‘(A) any corporation the stock of which is regularly 

traded on an established securities market, 

‘‘(B) any corporation which is a member of the same 

expanded affiliated group (as defined in section 1471(e)(2) 

without regard to the last sentence thereof) as a corporation 

described in subparagraph (A), 

‘‘(C) any entity which is organized under the laws 

of a possession of the United States and which is wholly 

owned by one or more bona fide residents (as defined 

in section 937(a)) of such possession, 

‘‘(D) any foreign government, any political subdivision 

of a foreign government, or any wholly owned agency or 

instrumentality of any one or more of the foregoing, 
H. R. 2847—33 

‘‘(E) any international organization or any wholly 

owned agency or instrumentality thereof, 

‘‘(F) any foreign central bank of issue, or 

‘‘(G) any other class of persons identified by the Secretary for purposes of this subsection, and 

‘‘(2) any class of payments identified by the Secretary for 

purposes of this subsection as posing a low risk of tax evasion. 

‘‘(d) NON-FINANCIAL FOREIGN ENTITY.—For purposes of this 

section, the term ‘non-financial foreign entity’ means any foreign 

entity which is not a financial institution (as defined in section 

1471(d)(5)). 

‘‘SEC. 1473. DEFINITIONS. 

‘‘For purposes of this chapter— 

‘‘(1) WITHHOLDABLE PAYMENT.—Except as otherwise provided by the Secretary— 

‘‘(A) IN GENERAL.—The term ‘withholdable payment’ 

means— 

‘‘(i) any payment of interest (including any original 

issue discount), dividends, rents, salaries, wages, premiums, annuities, compensations, remunerations, 

emoluments, and other fixed or determinable annual 

or periodical gains, profits, and income, if such payment is from sources within the United States, and 

‘‘(ii) any gross proceeds from the sale or other 

disposition of any property of a type which can produce 

interest or dividends from sources within the United 

States. 

‘‘(B) EXCEPTION FOR INCOME CONNECTED WITH UNITED

STATES BUSINESS.—Such term shall not include any item 

of income which is taken into account under section 

871(b)(1) or 882(a)(1) for the taxable year. 

‘‘(C) SPECIAL RULE FOR SOURCING INTEREST PAID BY

FOREIGN BRANCHES OF DOMESTIC FINANCIAL INSTITU- TIONS.—Subparagraph (B) of section 861(a)(1) shall not 

apply. 

‘‘(2) SUBSTANTIAL UNITED STATES OWNER.— ‘‘(A) IN GENERAL.—The term ‘substantial United States 

owner’ means— 

‘‘(i) with respect to any corporation, any specified 

United States person which owns, directly or indirectly, 

more than 10 percent of the stock of such corporation 

(by vote or value), 

‘‘(ii) with respect to any partnership, any specified 

United States person which owns, directly or indirectly, 

more than 10 percent of the profits interests or capital 

interests in such partnership, and 

‘‘(iii) in the case of a trust— 

‘‘(I) any specified United States person treated 

as an owner of any portion of such trust under 

subpart E of part I of subchapter J of chapter 

1, and 

‘‘(II) to the extent provided by the Secretary 

in regulations or other guidance, any specified 

United States person which holds, directly or 

indirectly, more than 10 percent of the beneficial 

interests of such trust. 
H. R. 2847—34 

‘‘(B) SPECIAL RULE FOR INVESTMENT VEHICLES.—In the 

case of any financial institution described in section 

1471(d)(5)(C), clauses (i), (ii), and (iii) of subparagraph 

(A) shall be applied by substituting ‘0 percent’ for ‘10 

percent’. 

‘‘(3) SPECIFIED UNITED STATES PERSON.—Except as otherwise provided by the Secretary, the term ‘specified United 

States person’ means any United States person other than— 

‘‘(A) any corporation the stock of which is regularly 

traded on an established securities market, 

‘‘(B) any corporation which is a member of the same 

expanded affiliated group (as defined in section 1471(e)(2) 

without regard to the last sentence thereof) as a corporation 

the stock of which is regularly traded on an established 

securities market, 

‘‘(C) any organization exempt from taxation under section 501(a) or an individual retirement plan, 

‘‘(D) the United States or any wholly owned agency 

or instrumentality thereof, 

‘‘(E) any State, the District of Columbia, any possession 

of the United States, any political subdivision of any of 

the foregoing, or any wholly owned agency or instrumentality of any one or more of the foregoing, 

‘‘(F) any bank (as defined in section 581), 

‘‘(G) any real estate investment trust (as defined in 

section 856), 

‘‘(H) any regulated investment company (as defined 

in section 851), 

‘‘(I) any common trust fund (as defined in section 

584(a)), and 

‘‘(J) any trust which— 

‘‘(i) is exempt from tax under section 664(c), or 

‘‘(ii) is described in section 4947(a)(1). 

‘‘(4) WITHHOLDING AGENT.—The term ‘withholding agent’ 

means all persons, in whatever capacity acting, having the 

control, receipt, custody, disposal, or payment of any 

withholdable payment. 

‘‘(5) FOREIGN ENTITY.—The term ‘foreign entity’ means any 

entity which is not a United States person. 

‘‘SEC. 1474. SPECIAL RULES. 

‘‘(a) LIABILITY FOR WITHHELD TAX.—Every person required to 

deduct and withhold any tax under this chapter is hereby made 

liable for such tax and is hereby indemnified against the claims 

and demands of any person for the amount of any payments made 

in accordance with the provisions of this chapter. 

‘‘(b) CREDITS AND REFUNDS.— 

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

the determination of whether any tax deducted and withheld 

under this chapter results in an overpayment by the beneficial 

owner of the payment to which such tax is attributable shall 

be made as if such tax had been deducted and withheld under 

subchapter A of chapter 3. 

‘‘(2) SPECIAL RULE WHERE FOREIGN FINANCIAL INSTITUTION

IS BENEFICIAL OWNER OF PAYMENT.— 
H. R. 2847—35 

‘‘(A) IN GENERAL.—In the case of any tax properly 

deducted and withheld under section 1471 from a specified 

financial institution payment— 

‘‘(i) if the foreign financial institution referred to 

in subparagraph (B) with respect to such payment 

is entitled to a reduced rate of tax with respect to 

such payment by reason of any treaty obligation of 

the United States— 

‘‘(I) the amount of any credit or refund with 

respect to such tax shall not exceed the amount 

of credit or refund attributable to such reduction 

in rate, and 

‘‘(II) no interest shall be allowed or paid with 

respect to such credit or refund, and 

‘‘(ii) if such foreign financial institution is not so 

entitled, no credit or refund shall be allowed or paid 

with respect to such tax. 

‘‘(B) SPECIFIED FINANCIAL INSTITUTION PAYMENT.—The 

term ‘specified financial institution payment’ means any 

payment if the beneficial owner of such payment is a foreign financial institution. 

‘‘(3) REQUIREMENT TO IDENTIFY SUBSTANTIAL UNITED STATES

OWNERS.—No credit or refund shall be allowed or paid with 

respect to any tax properly deducted and withheld under this 

chapter unless the beneficial owner of the payment provides 

the Secretary such information as the Secretary may require 

to determine whether such beneficial owner is a United States 

owned foreign entity (as defined in section 1471(d)(3)) and 

the identity of any substantial United States owners of such 

entity. 

‘‘(c) CONFIDENTIALITY OF INFORMATION.— 

‘‘(1) IN GENERAL.—For purposes of this chapter, rules 

similar to the rules of section 3406(f) shall apply. 

‘‘(2) DISCLOSURE OF LIST OF PARTICIPATING FOREIGN FINANCIAL INSTITUTIONS PERMITTED.—The identity of a foreign financial institution which meets the requirements of section 1471(b) 

shall not be treated as return information for purposes of 

section 6103. 

‘‘(d) COORDINATION WITH OTHER WITHHOLDING PROVISIONS.— 

The Secretary shall provide for the coordination of this chapter 

with other withholding provisions under this title, including providing for the proper crediting of amounts deducted and withheld 

under this chapter against amounts required to be deducted and 

withheld under such other provisions. 

‘‘(e) TREATMENT OF WITHHOLDING UNDER AGREEMENTS.—Any 

tax deducted and withheld pursuant to an agreement described 

in section 1471(b) shall be treated for purposes of this title as 

a tax deducted and withheld by a withholding agent under section 

1471(a). 

‘‘(f) REGULATIONS.—The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to 

carry out the purposes of, and prevent the avoidance of, this 

chapter.’’. 

(b) SPECIAL RULE FOR INTEREST ON OVERPAYMENTS.—Subsection (e) of section 6611 is amended by adding at the end the 

following new paragraph: 
H. R. 2847—36 

‘‘(4) CERTAIN WITHHOLDING TAXES.—In the case of any overpayment resulting from tax deducted and withheld under 

chapter 3 or 4, paragraphs (1), (2), and (3) shall be applied 

by substituting ‘180 days’ for ‘45 days’ each place it appears.’’. 

(c) CONFORMING AMENDMENTS.— 

(1) Section 6414 is amended by inserting ‘‘or 4’’ after 

‘‘chapter 3’’. 

(2) Paragraph (1) of section 6501(b) is amended by inserting 

‘‘4,’’ after ‘‘chapter 3,’’. 

(3) Paragraph (2) of section 6501(b) is amended— 

(A) by inserting ‘‘4,’’ after ‘‘chapter 3,’’ in the text 

thereof, and 

(B) by striking ‘‘TAXES AND TAX IMPOSED BY CHAPTER

3’’ in the heading thereof and inserting ‘‘AND WITHHOLDING

TAXES’’. 

(4) Paragraph (3) of section 6513(b) is amended— 

(A) by inserting ‘‘or 4’’ after ‘‘chapter 3’’, and 

(B) by inserting ‘‘or 1474(b)’’ after ‘‘section 1462’’. 

(5) Subsection (c) of section 6513 is amended by inserting 

‘‘4,’’ after ‘‘chapter 3,’’. 

(6) Paragraph (1) of section 6724(d) is amended by inserting 

‘‘under chapter 4 or’’ after ‘‘filed with the Secretary’’ in the 

last sentence thereof. 

(7) Paragraph (2) of section 6724(d) is amended by inserting 

‘‘or 4’’ after ‘‘chapter 3’’. 

(8) The table of chapters of the Internal Revenue Code 

of 1986 is amended by adding at the end the following new 

item: 

‘‘CHAPTER 4—TAXES TO ENFORCE REPORTING ON CERTAIN FOREIGN ACCOUNTS.’’. 

(d) EFFECTIVE DATE.— 

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

payments made after December 31, 2012. 

(2) GRANDFATHERED TREATMENT OF OUTSTANDING OBLIGATIONS.—The amendments made by this section shall not require 

any amount to be deducted or withheld from any payment 

under any obligation outstanding on the date which is 2 years 

after the date of the enactment of this Act or from the gross 

proceeds from any disposition of such an obligation. 

(3) INTEREST ON OVERPAYMENTS.—The amendment made 

by subsection (b) shall apply— 

(A) in the case of such amendment’s application to 

paragraph (1) of section 6611(e) of the Internal Revenue 

Code of 1986, to returns the due date for which (determined 

without regard to extensions) is after the date of the enactment of this Act, 

(B) in the case of such amendment’s application to 

paragraph (2) of such section, to claims for credit or refund 

of any overpayment filed after the date of the enactment 

of this Act (regardless of the taxable period to which such 

refund relates), and 

(C) in the case of such amendment’s application to 

paragraph (3) of such section, to refunds paid after the 

date of the enactment of this Act (regardless of the taxable 

period to which such refund relates). 
H. R. 2847—37 

SEC. 502. REPEAL OF CERTAIN FOREIGN EXCEPTIONS TO REGISTERED 

BOND REQUIREMENTS. 

(a) REPEAL OF EXCEPTION TO DENIAL OF DEDUCTION FOR

INTEREST ON NON-REGISTERED BONDS.— 

(1) IN GENERAL.—Paragraph (2) of section 163(f) is amended 

by striking subparagraph (B) and by redesignating subparagraph (C) as subparagraph (B). 

(2) CONFORMING AMENDMENTS.— 

(A) Paragraph (2) of section 149(a) is amended by 

inserting ‘‘or’’ at the end of subparagraph (A), by striking 

‘‘, or’’ at the end of subparagraph (B) and inserting a 

period, and by striking subparagraph (C). 

(B) Subparagraph (A) of section 163(f)(2) is amended 

by inserting ‘‘or’’ at the end of clause (ii), by striking 

‘‘, or’’ at the end of clause (iii) and inserting a period, 

and by striking clause (iv). 

(C) Subparagraph (B) of section 163(f)(2), as redesignated by paragraph (1), is amended— 

(i) by striking ‘‘, and subparagraph (B),’’ in the 

matter preceding clause (i), and 

(ii) by amending clause (i) to read as follows: 

‘‘(i) such obligation is of a type which the Secretary 

has determined by regulations to be used frequently 

in avoiding Federal taxes, and’’. 

(D) Sections 165(j)(2)(A) and 1287(b)(1) are each 

amended by striking ‘‘except that clause (iv) of subparagraph (A), and subparagraph (B), of such section shall 

not apply’’. 

(b) REPEAL OF TREATMENT AS PORTFOLIO DEBT.— 

(1) IN GENERAL.—Paragraph (2) of section 871(h) is 

amended to read as follows: 

‘‘(2) PORTFOLIO INTEREST.—For purposes of this subsection, 

the term ‘portfolio interest’ means any interest (including 

original issue discount) which— 

‘‘(A) would be subject to tax under subsection (a) but 

for this subsection, and 

‘‘(B) is paid on an obligation— 

‘‘(i) which is in registered form, and 

‘‘(ii) with respect to which— 

‘‘(I) the United States person who would otherwise be required to deduct and withhold tax from 

such interest under section 1441(a) receives a 

statement (which meets the requirements of paragraph (5)) that the beneficial owner of the obligation is not a United States person, or 

‘‘(II) the Secretary has determined that such 

a statement is not required in order to carry out 

the purposes of this subsection.’’. 

(2) CONFORMING AMENDMENTS.— 

(A) Section 871(h)(3)(A) is amended by striking 

‘‘subparagraph (A) or (B) of’’. 

(B) Paragraph (2) of section 881(c) is amended to read 

as follows: 

‘‘(2) PORTFOLIO INTEREST.—For purposes of this subsection, 

the term ‘portfolio interest’ means any interest (including 

original issue discount) which— 
H. R. 2847—38 

‘‘(A) would be subject to tax under subsection (a) but 

for this subsection, and 

‘‘(B) is paid on an obligation— 

‘‘(i) which is in registered form, and 

‘‘(ii) with respect to which— 

‘‘(I) the person who would otherwise be 

required to deduct and withhold tax from such 

interest under section 1442(a) receives a statement 

which meets the requirements of section 871(h)(5) 

that the beneficial owner of the obligation is not 

a United States person, or 

‘‘(II) the Secretary has determined that such 

a statement is not required in order to carry out 

the purposes of this subsection.’’. 

(c) DEMATERIALIZED BOOK ENTRY SYSTEMS TREATED AS REGISTERED FORM.—Paragraph (3) of section 163(f) is amended by 

inserting ‘‘, except that a dematerialized book entry system or 

other book entry system specified by the Secretary shall be treated 

as a book entry system described in such section’’ before the period 

at the end. 

(d) REPEAL OF EXCEPTION TO REQUIREMENT THAT TREASURY

OBLIGATIONS BE IN REGISTERED FORM.— 

(1) IN GENERAL.—Subsection (g) of section 3121 of title 

31, United States Code, is amended by striking paragraph 

(2) and by redesignating paragraphs (3) and (4) as paragraphs 

(2) and (3), respectively. 

(2) CONFORMING AMENDMENTS.—Paragraph (1) of section 

3121(g) of such title is amended— 

(A) by adding ‘‘or’’ at the end of subparagraph (A), 

(B) by striking ‘‘; or’’ at the end of subparagraph (B) 

and inserting a period, and 

(C) by striking subparagraph (C). 

(e) PRESERVATION OF EXCEPTION FOR EXCISE TAX PURPOSES.— Paragraph (1) of section 4701(b) is amended to read as follows: 

‘‘(1) REGISTRATION-REQUIRED OBLIGATION.— ‘‘(A) IN GENERAL.—The term ‘registration-required 

obligation’ has the same meaning as when used in section 

163(f), except that such term shall not include any obligation which— 

‘‘(i) is required to be registered under section 

149(a), or 

‘‘(ii) is described in subparagraph (B). 

‘‘(B) CERTAIN OBLIGATIONS NOT INCLUDED.—An obligation is described in this subparagraph if— 

‘‘(i) there are arrangements reasonably designed 

to ensure that such obligation will be sold (or resold 

in connection with the original issue) only to a person 

who is not a United States person, 

‘‘(ii) interest on such obligation is payable only 

outside the United States and its possessions, and 

‘‘(iii) on the face of such obligation there is a statement that any United States person who holds such 

obligation will be subject to limitations under the 

United States income tax laws.’’. 

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

shall apply to obligations issued after the date which is 2 years 

after the date of the enactment of this Act. 
H. R. 2847—39 

PART II—UNDER REPORTING WITH RESPECT 

TO FOREIGN ASSETS 

SEC. 511. DISCLOSURE OF INFORMATION WITH RESPECT TO FOREIGN 

FINANCIAL ASSETS. 

(a) IN GENERAL.—Subpart A of part III of subchapter A of 

chapter 61 is amended by inserting after section 6038C the following 

new section: 

‘‘SEC. 6038D. INFORMATION WITH RESPECT TO FOREIGN FINANCIAL 

ASSETS. 

‘‘(a) IN GENERAL.—Any individual who, during any taxable 

year, holds any interest in a specified foreign financial asset shall 

attach to such person’s return of tax imposed by subtitle A for 

such taxable year the information described in subsection (c) with 

respect to each such asset if the aggregate value of all such assets 

exceeds $50,000 (or such higher dollar amount as the Secretary 

may prescribe). 

‘‘(b) SPECIFIED FOREIGN FINANCIAL ASSETS.—For purposes of 

this section, the term ‘specified foreign financial asset’ means— 

‘‘(1) any financial account (as defined in section 1471(d)(2)) 

maintained by a foreign financial institution (as defined in 

section 1471(d)(4)), and 

‘‘(2) any of the following assets which are not held in 

an account maintained by a financial institution (as defined 

in section 1471(d)(5))— 

‘‘(A) any stock or security issued by a person other 

than a United States person, 

‘‘(B) any financial instrument or contract held for 

investment that has an issuer or counterparty which is 

other than a United States person, and 

‘‘(C) any interest in a foreign entity (as defined in 

section 1473). 

‘‘(c) REQUIRED INFORMATION.—The information described in this 

subsection with respect to any asset is: 

‘‘(1) In the case of any account, the name and address 

of the financial institution in which such account is maintained 

and the number of such account. 

‘‘(2) In the case of any stock or security, the name and 

address of the issuer and such information as is necessary 

to identify the class or issue of which such stock or security 

is a part. 

‘‘(3) In the case of any other instrument, contract, or 

interest— 

‘‘(A) such information as is necessary to identify such 

instrument, contract, or interest, and 

‘‘(B) the names and addresses of all issuers and 

counterparties with respect to such instrument, contract, 

or interest. 

‘‘(4) The maximum value of the asset during the taxable 

year. 

‘‘(d) PENALTY FOR FAILURE TO DISCLOSE.— 

‘‘(1) IN GENERAL.—If any individual fails to furnish the 

information described in subsection (c) with respect to any 

taxable year at the time and in the manner described in subsection (a), such person shall pay a penalty of $10,000. 
H. R. 2847—40 

‘‘(2) INCREASE IN PENALTY WHERE FAILURE CONTINUES

AFTER NOTIFICATION.—If any failure described in paragraph 

(1) continues for more than 90 days after the day on which 

the Secretary mails notice of such failure to the individual, 

such individual shall pay a penalty (in addition to the penalties 

under paragraph (1)) of $10,000 for each 30-day period (or 

fraction thereof) during which such failure continues after the 

expiration of such 90-day period. The penalty imposed under 

this paragraph with respect to any failure shall not exceed 

$50,000. 

‘‘(e) PRESUMPTION THAT VALUE OF SPECIFIED FOREIGN FINANCIAL ASSETS EXCEEDS DOLLAR THRESHOLD.—If— 

‘‘(1) the Secretary determines that an individual has an 

interest in one or more specified foreign financial assets, and 

‘‘(2) such individual does not provide sufficient information 

to demonstrate the aggregate value of such assets, 

then the aggregate value of such assets shall be treated as being 

in excess of $50,000 (or such higher dollar amount as the Secretary 

prescribes for purposes of subsection (a)) for purposes of assessing 

the penalties imposed under this section. 

‘‘(f) APPLICATION TO CERTAIN ENTITIES.—To the extent provided 

by the Secretary in regulations or other guidance, the provisions 

of this section shall apply to any domestic entity which is formed 

or availed of for purposes of holding, directly or indirectly, specified 

foreign financial assets, in the same manner as if such entity 

were an individual. 

‘‘(g) REASONABLE CAUSE EXCEPTION.—No penalty shall be 

imposed by this section on any failure which is shown to be due 

to reasonable cause and not due to willful neglect. The fact that 

a foreign jurisdiction would impose a civil or criminal penalty 

on the taxpayer (or any other person) for disclosing the required 

information is not reasonable cause. 

‘‘(h) REGULATIONS.—The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to 

carry out the purposes of this section, including regulations or 

other guidance which provide appropriate exceptions from the 

application of this section in the case of— 

‘‘(1) classes of assets identified by the Secretary, including 

any assets with respect to which the Secretary determines 

that disclosure under this section would be duplicative of other 

disclosures, 

‘‘(2) nonresident aliens, and 

‘‘(3) bona fide residents of any possession of the United 

States.’’. 

(b) CLERICAL AMENDMENT.—The table of sections for subpart 

A of part III of subchapter A of chapter 61 is amended by inserting 

after the item relating to section 6038C the following new item: 

‘‘Sec. 6038D. Information with respect to foreign financial assets.’’. 

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

shall apply to taxable years beginning after the date of the enactment of this Act. 

SEC. 512. PENALTIES FOR UNDERPAYMENTS ATTRIBUTABLE TO 

UNDISCLOSED FOREIGN FINANCIAL ASSETS. 

(a) IN GENERAL.—Section 6662, as amended by this Act, is 

amended— 
H. R. 2847—41 

(1) in subsection (b), by inserting after paragraph (6) the 

following new paragraph: 

‘‘(7) Any undisclosed foreign financial asset understatement.’’, and 

(2) by adding at the end the following new subsection: 

‘‘(j) UNDISCLOSED FOREIGN FINANCIAL ASSET UNDERSTATEMENT.— 

‘‘(1) IN GENERAL.—For purposes of this section, the term 

‘undisclosed foreign financial asset understatement’ means, for 

any taxable year, the portion of the understatement for such 

taxable year which is attributable to any transaction involving 

an undisclosed foreign financial asset. 

‘‘(2) UNDISCLOSED FOREIGN FINANCIAL ASSET.—For purposes 

of this subsection, the term ‘undisclosed foreign financial asset’ 

means, with respect to any taxable year, any asset with respect 

to which information was required to be provided under section 

6038, 6038B, 6038D, 6046A, or 6048 for such taxable year 

but was not provided by the taxpayer as required under the 

provisions of those sections. 

‘‘(3) INCREASE IN PENALTY FOR UNDISCLOSED FOREIGN

FINANCIAL ASSET UNDERSTATEMENTS.—In the case of any portion of an underpayment which is attributable to any undisclosed foreign financial asset understatement, subsection (a) 

shall be applied with respect to such portion by substituting 

‘40 percent’ for ‘20 percent’.’’. 

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

shall apply to taxable years beginning after the date of the enactment of this Act. 

SEC. 513. MODIFICATION OF STATUTE OF LIMITATIONS FOR SIGNIFICANT OMISSION OF INCOME IN CONNECTION WITH FOREIGN ASSETS. 

(a) EXTENSION OF STATUTE OF LIMITATIONS.— 

(1) IN GENERAL.—Paragraph (1) of section 6501(e) is 

amended by redesignating subparagraphs (A) and (B) as subparagraphs (B) and (C), respectively, and by inserting before 

subparagraph (B) (as so redesignated) the following new 

subparagraph: 

‘‘(A) GENERAL RULE.—If the taxpayer omits from gross 

income an amount properly includible therein and— 

‘‘(i) such amount is in excess of 25 percent of 

the amount of gross income stated in the return, or 

‘‘(ii) such amount— 

‘‘(I) is attributable to one or more assets with 

respect to which information is required to be 

reported under section 6038D (or would be so 

required if such section were applied without 

regard to the dollar threshold specified in subsection (a) thereof and without regard to any exceptions provided pursuant to subsection (h)(1) 

thereof), and 

‘‘(II) is in excess of $5,000, 

the tax may be assessed, or a proceeding in court for 

collection of such tax may be begun without assessment, 

at any time within 6 years after the return was filed.’’. 

(2) CONFORMING AMENDMENTS.— 
H. R. 2847—42 

(A) Subparagraph (B) of section 6501(e)(1), as redesignated by paragraph (1), is amended by striking all that 

precedes clause (i) and inserting the following: 

‘‘(B) DETERMINATION OF GROSS INCOME.—For purposes 

of subparagraph (A)—’’. 

(B) Paragraph (2) of section 6229(c) is amended by 

striking ‘‘which is in excess of 25 percent of the amount 

of gross income stated in its return’’ and inserting ‘‘and 

such amount is described in clause (i) or (ii) of section 

6501(e)(1)(A)’’. 

(b) ADDITIONAL REPORTS SUBJECT TO EXTENDED PERIOD.—Paragraph (8) of section 6501(c) is amended— 

(1) by inserting ‘‘pursuant to an election under section 

1295(b) or’’ before ‘‘under section 6038’’, 

(2) by inserting ‘‘1298(f),’’ before ‘‘6038’’, and 

(3) by inserting ‘‘6038D,’’ after ‘‘6038B,’’. 

(c) CLARIFICATIONS RELATED TO FAILURE TO DISCLOSE FOREIGN

TRANSFERS.—Paragraph (8) of section 6501(c) is amended by 

striking ‘‘event’’ and inserting ‘‘tax return, event,’’. 

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

shall apply to— 

(1) returns filed after the date of the enactment of this 

Act; and 

(2) returns filed on or before such date if the period specified in section 6501 of the Internal Revenue Code of 1986 

(determined without regard to such amendments) for assessment of such taxes has not expired as of such date. 

PART III—OTHER DISCLOSURE PROVISIONS 

SEC. 521. REPORTING OF ACTIVITIES WITH RESPECT TO PASSIVE FOREIGN INVESTMENT COMPANIES. 

(a) IN GENERAL.—Section 1298 is amended by redesignating 

subsection (f) as subsection (g) and by inserting after subsection 

(e) the following new subsection: 

‘‘(f) REPORTING REQUIREMENT.—Except as otherwise provided 

by the Secretary, each United States person who is a shareholder 

of a passive foreign investment company shall file an annual report 

containing such information as the Secretary may require.’’. 

(b) CONFORMING AMENDMENT.—Subsection (e) of section 1291 

is amended by striking ‘‘, (d), and (f)’’ and inserting ‘‘and (d)’’. 

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

take effect on the date of the enactment of this Act. 

SEC. 522. SECRETARY PERMITTED TO REQUIRE FINANCIAL INSTITUTIONS TO FILE CERTAIN RETURNS RELATED TO WITHHOLDING ON FOREIGN TRANSFERS ELECTRONICALLY. 

(a) IN GENERAL.—Subsection (e) of section 6011 is amended 

by adding at the end the following new paragraph: 

‘‘(4) SPECIAL RULE FOR RETURNS FILED BY FINANCIAL

INSTITUTIONS WITH RESPECT TO WITHHOLDING ON FOREIGN

TRANSFERS.—The numerical limitation under paragraph (2)(A) 

shall not apply to any return filed by a financial institution 

(as defined in section 1471(d)(5)) with respect to tax for which 

such institution is made liable under section 1461 or 1474(a).’’. 
H. R. 2847—43 

(b) CONFORMING AMENDMENT.—Subsection (c) of section 6724 

is amended by inserting ‘‘or with respect to a return described 

in section 6011(e)(4)’’ before the end period. 

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

shall apply to returns the due date for which (determined without 

regard to extensions) is after the date of the enactment of this 

Act. 

PART IV—PROVISIONS RELATED TO FOREIGN 

TRUSTS 

SEC. 531. CLARIFICATIONS WITH RESPECT TO FOREIGN TRUSTS 

WHICH ARE TREATED AS HAVING A UNITED STATES BENEFICIARY. 

(a) IN GENERAL.—Paragraph (1) of section 679(c) is amended 

by adding at the end the following: 

‘‘For purposes of subparagraph (A), an amount shall be treated 

as accumulated for the benefit of a United States person even 

if the United States person’s interest in the trust is contingent 

on a future event.’’. 

(b) CLARIFICATION REGARDING DISCRETION TO IDENTIFY BENEFICIARIES.—Subsection (c) of section 679 is amended by adding 

at the end the following new paragraph: 

‘‘(4) SPECIAL RULE IN CASE OF DISCRETION TO IDENTIFY

BENEFICIARIES.—For purposes of paragraph (1)(A), if any person 

has the discretion (by authority given in the trust agreement, 

by power of appointment, or otherwise) of making a distribution 

from the trust to, or for the benefit of, any person, such trust 

shall be treated as having a beneficiary who is a United States 

person unless— 

‘‘(A) the terms of the trust specifically identify the 

class of persons to whom such distributions may be made, 

and 

‘‘(B) none of those persons are United States persons 

during the taxable year.’’. 

(c) CLARIFICATION THAT CERTAIN AGREEMENTS AND UNDER- STANDINGS ARE TERMS OF THE TRUST.—Subsection (c) of section 

679, as amended by subsection (b), is amended by adding at the 

end the following new paragraph: 

‘‘(5) CERTAIN AGREEMENTS AND UNDERSTANDINGS TREATED

AS TERMS OF THE TRUST.—For purposes of paragraph (1)(A), 

if any United States person who directly or indirectly transfers 

property to the trust is directly or indirectly involved in any 

agreement or understanding (whether written, oral, or otherwise) that may result in the income or corpus of the trust 

being paid or accumulated to or for the benefit of a United 

States person, such agreement or understanding shall be 

treated as a term of the trust.’’. 

SEC. 532. PRESUMPTION THAT FOREIGN TRUST HAS UNITED STATES 

BENEFICIARY. 

(a) IN GENERAL.—Section 679 is amended by redesignating 

subsection (d) as subsection (e) and inserting after subsection (c) 

the following new subsection: 

‘‘(d) PRESUMPTION THAT FOREIGN TRUST HAS UNITED STATES

BENEFICIARY.—If a United States person directly or indirectly transfers property to a foreign trust (other than a trust described in 
H. R. 2847—44 

section 6048(a)(3)(B)(ii)), the Secretary may treat such trust as 

having a United States beneficiary for purposes of applying this 

section to such transfer unless such person— 

‘‘(1) submits such information to the Secretary as the Secretary may require with respect to such transfer, and 

‘‘(2) demonstrates to the satisfaction of the Secretary that 

such trust satisfies the requirements of subparagraphs (A) and 

(B) of subsection (c)(1).’’. 

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

shall apply to transfers of property after the date of the enactment 

of this Act. 

SEC. 533. UNCOMPENSATED USE OF TRUST PROPERTY. 

(a) IN GENERAL.—Paragraph (1) of section 643(i) is amended— 

(1) by striking ‘‘directly or indirectly to’’ and inserting ‘‘(or 

permits the use of any other trust property) directly or 

indirectly to or by’’, and 

(2) by inserting ‘‘(or the fair market value of the use of 

such property)’’ after ‘‘the amount of such loan’’. 

(b) EXCEPTION FOR COMPENSATED USE.—Paragraph (2) of section 643(i) is amended by adding at the end the following new 

subparagraph: 

‘‘(E) EXCEPTION FOR COMPENSATED USE OF PROPERTY.— In the case of the use of any trust property other than 

a loan of cash or marketable securities, paragraph (1) shall 

not apply to the extent that the trust is paid the fair 

market value of such use within a reasonable period of 

time of such use.’’. 

(c) APPLICATION TO GRANTOR TRUSTS.—Subsection (c) of section 

679, as amended by this Act, is amended by adding at the end 

the following new paragraph: 

‘‘(6) UNCOMPENSATED USE OF TRUST PROPERTY TREATED

AS A PAYMENT.—For purposes of this subsection, a loan of 

cash or marketable securities (or the use of any other trust 

property) directly or indirectly to or by any United States 

person (whether or not a beneficiary under the terms of the 

trust) shall be treated as paid or accumulated for the benefit 

of a United States person. The preceding sentence shall not 

apply to the extent that the United States person repays the 

loan at a market rate of interest (or pays the fair market 

value of the use of such property) within a reasonable period 

of time.’’. 

(d) CONFORMING AMENDMENTS.—Paragraph (3) of section 643(i) 

is amended— 

(1) by inserting ‘‘(or use of property)’’ after ‘‘If any loan’’, 

(2) by inserting ‘‘or the return of such property’’ before 

‘‘shall be disregarded’’, and 

(3) by striking ‘‘REGARDING LOAN PRINCIPAL’’ in the heading 

thereof. 

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

shall apply to loans made, and uses of property, after the date 

of the enactment of this Act. 

SEC. 534. REPORTING REQUIREMENT OF UNITED STATES OWNERS OF 

FOREIGN TRUSTS. 

(a) IN GENERAL.—Paragraph (1) of section 6048(b) is amended 

by inserting ‘‘shall submit such information as the Secretary may 
H. R. 2847—45 

prescribe with respect to such trust for such year and’’ before 

‘‘shall be responsible to ensure’’. 

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

shall apply to taxable years beginning after the date of the enactment of this Act. 

SEC. 535. MINIMUM PENALTY WITH RESPECT TO FAILURE TO REPORT 

ON CERTAIN FOREIGN TRUSTS. 

(a) IN GENERAL.—Subsection (a) of section 6677 is amended— 

(1) by inserting ‘‘the greater of $10,000 or’’ before ‘‘35 

percent’’, and 

(2) by striking the last sentence and inserting the following: 

‘‘At such time as the gross reportable amount with respect 

to any failure can be determined by the Secretary, any subsequent penalty imposed under this subsection with respect to 

such failure shall be reduced as necessary to assure that the 

aggregate amount of such penalties do not exceed the gross 

reportable amount (and to the extent that such aggregate 

amount already exceeds the gross reportable amount the Secretary shall refund such excess to the taxpayer).’’ 

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

shall apply to notices and returns required to be filed after 

December 31, 2009. 

PART V—SUBSTITUTE DIVIDENDS AND DIVIDEND EQUIVALENT PAYMENTS RECEIVED 

BY FOREIGN PERSONS TREATED AS DIVIDENDS 

SEC. 541. SUBSTITUTE DIVIDENDS AND DIVIDEND EQUIVALENT PAYMENTS RECEIVED BY FOREIGN PERSONS TREATED AS 

DIVIDENDS. 

(a) IN GENERAL.—Section 871 is amended by redesignating 

subsection (l) as subsection (m) and by inserting after subsection 

(k) the following new subsection: 

‘‘(l) TREATMENT OF DIVIDEND EQUIVALENT PAYMENTS.— 

‘‘(1) IN GENERAL.—For purposes of subsection (a), sections 

881 and 4948(a), and chapters 3 and 4, a dividend equivalent 

shall be treated as a dividend from sources within the United 

States. 

‘‘(2) DIVIDEND EQUIVALENT.—For purposes of this subsection, the term ‘dividend equivalent’ means— 

‘‘(A) any substitute dividend made pursuant to a securities lending or a sale-repurchase transaction that (directly 

or indirectly) is contingent upon, or determined by reference 

to, the payment of a dividend from sources within the 

United States, 

‘‘(B) any payment made pursuant to a specified notional 

principal contract that (directly or indirectly) is contingent 

upon, or determined by reference to, the payment of a 

dividend from sources within the United States, and 

‘‘(C) any other payment determined by the Secretary 

to be substantially similar to a payment described in 

subparagraph (A) or (B). 
H. R. 2847—46 

‘‘(3) SPECIFIED NOTIONAL PRINCIPAL CONTRACT.—For purposes of this subsection, the term ‘specified notional principal 

contract’ means— 

‘‘(A) any notional principal contract if— 

‘‘(i) in connection with entering into such contract, 

any long party to the contract transfers the underlying 

security to any short party to the contract, 

‘‘(ii) in connection with the termination of such 

contract, any short party to the contract transfers the 

underlying security to any long party to the contract, 

‘‘(iii) the underlying security is not readily tradable 

on an established securities market, 

‘‘(iv) in connection with entering into such contract, 

the underlying security is posted as collateral by any 

short party to the contract with any long party to 

the contract, or 

‘‘(v) such contract is identified by the Secretary 

as a specified notional principal contract, 

‘‘(B) in the case of payments made after the date which 

is 2 years after the date of the enactment of this subsection, 

any notional principal contract unless the Secretary determines that such contract is of a type which does not have 

the potential for tax avoidance. 

‘‘(4) DEFINITIONS.—For purposes of paragraph (3)(A)— 

‘‘(A) LONG PARTY.—The term ‘long party’ means, with 

respect to any underlying security of any notional principal 

contract, any party to the contract which is entitled to 

receive any payment pursuant to such contract which is 

contingent upon, or determined by reference to, the payment of a dividend from sources within the United States 

with respect to such underlying security. 

‘‘(B) SHORT PARTY.—The term ‘short party’ means, with 

respect to any underlying security of any notional principal 

contract, any party to the contract which is not a long 

party with respect to such underlying security. 

‘‘(C) UNDERLYING SECURITY.—The term ‘underlying 

security’ means, with respect to any notional principal contract, the security with respect to which the dividend 

referred to in paragraph (2)(B) is paid. For purposes of 

this paragraph, any index or fixed basket of securities 

shall be treated as a single security. 

‘‘(5) PAYMENTS DETERMINED ON GROSS BASIS.—For purposes 

of this subsection, the term ‘payment’ includes any gross 

amount which is used in computing any net amount which 

is transferred to or from the taxpayer. 

‘‘(6) PREVENTION OF OVER-WITHHOLDING.—In the case of 

any chain of dividend equivalents one or more of which is 

subject to tax under subsection (a) or section 881, the Secretary 

may reduce such tax, but only to the extent that the taxpayer 

can establish that such tax has been paid with respect to 

another dividend equivalent in such chain, or is not otherwise 

due, or as the Secretary determines is appropriate to address 

the role of financial intermediaries in such chain. For purposes 

of this paragraph, a dividend shall be treated as a dividend 

equivalent. 

‘‘(7) COORDINATION WITH CHAPTERS 3 AND 4.—For purposes 

of chapters 3 and 4, each person that is a party to any contract 
H. R. 2847—47 

or other arrangement that provides for the payment of a dividend equivalent shall be treated as having control of such 

payment.’’. 

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

shall apply to payments made on or after the date that is 180 

days after the date of the enactment of this Act. 

Subtitle B—Delay in Application of 

Worldwide Allocation of Interest 

SEC. 551. DELAY IN APPLICATION OF WORLDWIDE ALLOCATION OF 

INTEREST. 

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

are each amended by striking ‘‘December 31, 2017’’ and inserting 

‘‘December 31, 2020’’. 

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

shall take effect on the date of the enactment of this Act. 

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 
H. R. 2847—48 

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

on this conference report or amendments between the Houses. 

Speaker of the House of Representatives. 

Vice President of the United States and

President of the Senate.