In the Senate of the United States, 

February 24, 2010. 

Resolved, That the Senate agrees to the amendment of 

the House of Representatives to the amendment of the Senate to the bill (H.R. 2847) entitled ‘‘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.’’, with the following 

SENATE AMENDMENT TO HOUSE AMENDMENT TO 

SENATE AMENDMENT: 

In lieu of the matter proposed to be inserted by the 

amendment of the House to the amendment of the Senate insert the following: 

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

2 TABLE OF CONTENTS. 

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

4 ‘‘Hiring Incentives to Restore Employment Act’’. 

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

6 expressly provided, whenever in this Act an amendment or 

7 repeal is expressed in terms of an amendment to, or repeal 
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1 of, a section or other provision, the reference shall be consid2 ered to be made to a section or other provision of the Inter3 nal Revenue Code of 1986. 

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

5 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. 

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. 
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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. 

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. 
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1 TITLE I—INCENTIVES FOR HIR2 ING AND RETAINING UNEM3 PLOYED WORKERS 

4 SEC. 101. PAYROLL TAX FORGIVENESS FOR HIRING UNEM5 PLOYED WORKERS. 

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

7 at the end the following new subsection: 

8 ‘‘(d) SPECIAL EXEMPTION FOR CERTAIN INDIVIDUALS

9 HIRED IN 2010.— 

10 ‘‘(1) IN GENERAL.—Subsection (a) shall not 

11 apply to wages paid by a qualified employer with re12 spect to employment during the period beginning on 

13 the day after the date of the enactment of this sub14 section and ending on December 31, 2010, of any 

15 qualified individual for services performed— 

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

17 employer, or 

18 ‘‘(B) in the case of a qualified employer ex19 empt from tax under section 501(a), in further20 ance of the activities related to the purpose or 

21 function constituting the basis of the employer’s 

22 exemption under section 501. 

23 ‘‘(2) QUALIFIED EMPLOYER.—For purposes of 

24 this subsection— 
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1 ‘‘(A) IN GENERAL.—The term ‘qualified em2 ployer’ means any employer other than the 

3 United States, any State, or any political sub4 division thereof, or any instrumentality of the 

5 foregoing. 

6 ‘‘(B) TREATMENT OF EMPLOYEES OF POST7 SECONDARY EDUCATIONAL INSTITUTIONS.—Not8 withstanding subparagraph (A), the term ‘quali9 fied employer’ includes any employer which is a 

10 public institution of higher education (as defined 

11 in section 101(b) of the Higher Education Act of 

12 1965). 

13 ‘‘(3) QUALIFIED INDIVIDUAL.—For purposes of 

14 this subsection, the term ‘qualified individual’ means 

15 any individual who— 

16 ‘‘(A) begins employment with a qualified 

17 employer after February 3, 2010, and before 

18 January 1, 2011, 

19 ‘‘(B) certifies by signed affidavit, under 

20 penalties of perjury, that such individual has not 

21 been employed for more than 40 hours during the 

22 60-day period ending on the date such indi23 vidual begins such employment, 

24 ‘‘(C) is not employed by the qualified em25 ployer to replace another employee of such em-
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1 ployer unless such other employee separated from 

2 employment voluntarily or for cause, and 

3 ‘‘(D) is not an individual described in sec4 tion 51(i)(1) (applied by substituting ‘qualified 

5 employer’ for ‘taxpayer’ each place it appears). 

6 ‘‘(4) ELECTION.—A qualified employer may elect 

7 to have this subsection not apply. Such election shall 

8 be made in such manner as the Secretary may re9 quire.’’. 

10 (b) COORDINATION WITH WORK OPPORTUNITY CRED11 IT.—Section 51(c) is amended by adding at the end the fol12 lowing new paragraph: 

13 ‘‘(5) COORDINATION WITH PAYROLL TAX FOR14 GIVENESS.—The term ‘wages’ shall not include any 

15 amount paid or incurred to a qualified individual (as 

16 defined in section 3111(d)(3)) during the 1-year pe17 riod beginning on the hiring date of such individual 

18 by a qualified employer (as defined in section 

19 3111(d)) unless such qualified employer makes an 

20 election not to have section 3111(d) apply.’’. 

21 (c) TRANSFERS TO FEDERAL OLD-AGE AND SUR22 VIVORS INSURANCE TRUST FUND.—There are hereby ap23 propriated to the Federal Old-Age and Survivors Trust 

24 Fund and the Federal Disability Insurance Trust Fund es25 tablished under section 201 of the Social Security Act (42 
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1 U.S.C. 401) amounts equal to the reduction in revenues to 

2 the Treasury by reason of the amendments made by sub3 section (a). Amounts appropriated by the preceding sen4 tence shall be transferred from the general fund at such 

5 times and in such manner as to replicate to the extent pos6 sible the transfers which would have occurred to such Trust 

7 Fund had such amendments not been enacted. 

8 (d) EFFECTIVE DATE.—The amendments made by this 

9 section shall apply to wages paid after the date of the enact10 ment of this Act. 

11 SEC. 102. BUSINESS CREDIT FOR RETENTION OF CERTAIN 

12 NEWLY HIRED INDIVIDUALS IN 2010. 

13 (a) IN GENERAL.—In the case of any taxable year end14 ing after the date of the enactment of this Act, the current 

15 year business credit determined under section 38(b) of the 

16 Internal Revenue Code of 1986 for such taxable year shall 

17 be increased by an amount equal to the product of— 

18 (1) $1,000, and 

19 (2) the number of retained workers with respect 

20 to which subsection (b)(2) is first satisfied during 

21 such taxable year. 

22 (b) RETAINED WORKER.—For purposes of this section, 

23 the term ‘‘retained worker’’ means any qualified individual 

24 (as defined in section 3111(d)(3) of the Internal Revenue 

25 Code of 1986)— 
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1 (1) who was employed by the taxpayer on any 

2 date during the taxable year, 

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

4 period of not less than 52 consecutive weeks, and 

5 (3) whose wages for such employment during the 

6 last 26 weeks of such period equaled at least 80 per7 cent of such wages for the first 26 weeks of such pe8 riod. 

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

10 unused business credit under section 38 of the Internal Rev11 enue Code of 1986 for any taxable year which is attrib12 utable to the increase in the current year business credit 

13 under this section may be carried to a taxable year begin14 ning before the date of the enactment of this section. 

15 TITLE II—EXPENSING 

16 SEC. 201. INCREASE IN EXPENSING OF CERTAIN DEPRE17 CIABLE BUSINESS ASSETS. 

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

19 amended— 

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

21 years beginning after 2006 and before 2011)’’ in 

22 paragraph (1) and inserting ‘‘($250,000 in the case 

23 of taxable years beginning after 2007 and before 

24 2011)’’, 
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1 (2) by striking ‘‘($500,000 in the case of taxable 

2 years beginning after 2006 and before 2011)’’ in 

3 paragraph (2) and inserting ‘‘($800,000 in the case 

4 of taxable years beginning after 2007 and before 

5 2011)’’, 

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

7 (4) by redesignating paragraph (6) as para8 graph (5). 

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

10 section shall apply to taxable years beginning after Decem11 ber 31, 2009. 

12 TITLE III—QUALIFIED TAX 

13 CREDIT BONDS 

14 SEC. 301. ISSUER ALLOWED REFUNDABLE CREDIT FOR CER15 TAIN QUALIFIED TAX CREDIT BONDS. 

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

17 adding at the end the following new subsection: 

18 ‘‘(f) APPLICATION OF SECTION TO CERTAIN QUALI19 FIED TAX CREDIT BONDS.— 

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

21 tax credit bond— 

22 ‘‘(A) such bond shall be treated as a quali23 fied bond for purposes of this section, 
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1 ‘‘(B) subsection (a) shall be applied without 

2 regard to the requirement that the qualified bond 

3 be issued before January 1, 2011, 

4 ‘‘(C) the amount of the payment determined 

5 under subsection (b) with respect to any interest 

6 payment date under such bond shall be— 

7 ‘‘(i) in the case of a bond issued by a 

8 qualified small issuer, 65 percent of the 

9 amount of interest payable on such bond by 

10 such issuer with respect to such date, and 

11 ‘‘(ii) in the case of a bond issued by 

12 any other person, 45 percent of the amount 

13 of interest payable on such bond by such 

14 issuer with respect to such date, 

15 ‘‘(D) interest on any such bond shall be in16 cludible in gross income for purposes of this title, 

17 ‘‘(E) no credit shall be allowed under sec18 tion 54A with respect to such bond, 

19 ‘‘(F) any payment made under subsection 

20 (b) shall not be includible as income for purposes 

21 of this title, and 

22 ‘‘(G) the deduction otherwise allowed under 

23 this title to the issuer of such bond with respect 

24 to interest paid under such bond shall be reduced 
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1 by the amount of the payment made under this 

2 section with respect to such interest. 

3 ‘‘(2) DEFINITIONS.—For purposes of this sub4 section— 

5 ‘‘(A) SPECIFIED TAX CREDIT BOND.—The 

6 term ‘specified tax credit bond’ means any quali7 fied tax credit bond (as defined in section 

8 54A(d)) if— 

9 ‘‘(i) such bond is— 

10 ‘‘(I) a new clean renewable energy 

11 bond (as defined in section 54C), 

12 ‘‘(II) a qualified energy conserva13 tion bond (as defined in section 54D), 

14 ‘‘(III) a qualified zone academy 

15 bond (as defined in section 54E), or 

16 ‘‘(IV) a qualified school construc17 tion bond (as defined in section 54F), 

18 and 

19 ‘‘(ii) the issuer of such bond makes an 

20 irrevocable election to have this subsection 

21 apply, 

22 ‘‘(B) QUALIFIED SMALL ISSUER.—The term 

23 ‘qualified small issuer’ means, with respect to 

24 any calendar year, any issuer who is not reason25 ably expected to issue tax-exempt bonds (other 
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1 than private activity bonds) and specified tax 

2 credit bonds (determined without regard to 

3 whether an election is made under this sub4 section) during such calendar year in an aggre5 gate face amount exceeding $30,000,000.’’. 

6 (b) TECHNICAL CORRECTIONS RELATING TO QUALI7 FIED SCHOOL CONSTRUCTION BONDS.— 

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

9 amended by striking ‘‘by the State’’ and inserting ‘‘by 

10 the State education agency (or such other agency as 

11 is authorized under State law to make such alloca12 tion)’’. 

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

14 amended by striking ‘‘subsection (d)(4)’’ and insert15 ing ‘‘paragraphs (2) and (4) of subsection (d)’’. 

16 (c) EFFECTIVE DATES.— 

17 (1) IN GENERAL.—The amendment made by sub18 section (a) shall apply to bonds issued after the date 

19 of the enactment of this Act. 

20 (2) TECHNICAL CORRECTIONS.—The amend21 ments made by subsection (b) shall take effect as if in22 cluded in section 1521 of the American Recovery and 

23 Reinvestment Tax Act of 2009. 
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1 TITLE IV—EXTENSION OF CUR2 RENT SURFACE TRANSPOR3 TATION PROGRAMS 

4 SEC. 401. SHORT TITLE. 

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

6 Extension Act of 2010’’. 

7 Subtitle A—Federal-aid Highways 

8 SEC. 411. IN GENERAL. 

9 (a) IN GENERAL.—Except as provided in this Act, re10 quirements, authorities, conditions, eligibilities, limita11 tions, and other provisions authorized under titles I, V, and 

12 VI of the SAFETEA–LU (119 Stat. 1144), the SAFETEA– 

13 LU Technical Corrections Act of 2008 (122 Stat. 1572), ti14 tles I and VI of the Intermodal Surface Transportation Act 

15 of 1991 (105 Stat. 1914), titles I and V of the Transpor16 tation Equity Act for the 21st Century (112 Stat. 107), and 

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

18 title), which would otherwise expire on or cease to apply 

19 after September 30, 2009, or the date specified in section 

20 106(3) of the Continuing Appropriations Resolution, 2010 

21 (Public Law 111–68), are incorporated by reference and 

22 shall continue in effect until December 31, 2010. 

23 (b) AUTHORIZATION OF APPROPRIATIONS.—Except as 

24 provided in section 412, there are authorized to be appro-
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1 priated out of the Highway Trust Fund (other than the 

2 Mass Transit Account)— 

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

4 amount authorized to be appropriated out of the 

5 Highway Trust Fund for programs, projects, and ac6 tivities for fiscal year 2009 under titles I, V, and VI 

7 of the SAFETEA–LU (119 Stat. 1144), and title 23, 

8 United States Code (excluding chapter 4 of that title); 

9 and 

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

and ending on December 31, 2010, a sum equal to 1 11 ⁄4

12 of the total amount authorized to be appropriated out 

13 of the Highway Trust Fund for programs, projects, 

14 and activities for fiscal year 2009 under titles I, V, 

15 and VI of the SAFETEA–LU (119 Stat. 1144), and 

16 title 23, United States Code (excluding chapter 4 of 

17 that title). 

18 (c) USE OF FUNDS.— 

19 (1) FISCAL YEAR 2010.—Except as otherwise ex20 pressly provided in this Act, funds authorized to be 

21 appropriated under subsection (b)(1) for fiscal year 

22 2010 shall be distributed, administered, limited, and 

23 made available for obligation in the same manner 

24 and at the same level as funds authorized to be appro25 priated out of the Highway Trust Fund for fiscal 
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1 year 2009 to carry out programs, projects, activities, 

2 eligibilities, and requirements under the SAFETEA– 

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

4 Corrections Act of 2008 (122 Stat. 1572), titles I and 

5 VI of the Intermodal Surface Transportation Act of 

6 1991 (105 Stat. 1914), titles I and V of the Transpor7 tation Equity Act for the 21st Century (112 Stat. 

8 107), and title 23, United States Code (excluding 

9 chapter 4 of that title). 

10 (2) FISCAL YEAR 2011.—Except as otherwise ex11 pressly provided in this Act, funds authorized to be 

12 appropriated under subsection (b)(2) for the period 

13 beginning on October 1, 2010, and ending on Decem14 ber 31, 2010, shall be distributed, administered, lim15 ited, and made available for obligation in the same 

manner and at the same level as 1 16 ⁄4 of the total 

17 amount of funds authorized to be appropriated out of 

18 the Highway Trust Fund for fiscal year 2009 to 

19 carry out programs, projects, activities, eligibilities, 

20 and requirements under the SAFETEA–LU (119 

21 Stat. 1144), the SAFETEA–LU Technical Corrections 

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

23 Intermodal Surface Transportation Act of 1991 (105 

24 Stat. 1914), titles I and V of the Transportation Eq25 uity Act for the 21st Century (112 Stat. 107), and 
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1 title 23, United States Code (excluding chapter 4 of 

2 that title). 

3 (3) CALCULATION.—The amounts authorized to 

4 be appropriated under subsection (b) shall be cal5 culated without regard to any rescission or cancella6 tion of funds or contract authority for fiscal year 

7 2009 under the SAFETEA–LU (119 Stat. 1144) or 

8 any other law. 

9 (4) CONTRACT AUTHORITY.— 

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

11 subparagraph (B), funds authorized to be appro12 priated under this section shall be available for 

13 obligation and shall be administered in the same 

14 manner as if such funds were apportioned under 

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

16 (i) for fiscal year 2010, shall be subject 

17 to a limitation on obligations for Federal18 aid highways and highway safety construc19 tion programs included in an Act making 

20 appropriations for fiscal year 2010 or a 

21 portion of that fiscal year; and 

22 (ii) for the period beginning on Octo23 ber 1, 2010, and ending on December 31, 

24 2010, shall be subject to a limitation on ob25 ligations included in an Act making appro-
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1 priations for fiscal year 2011 or a portion 

2 of that fiscal year, except that during such 

3 period obligations subject to such limitation 

shall not exceed 1 4 ⁄4 of the limitation on obli5 gations included in an Act making appro6 priations for fiscal year 2011. 

7 (B) EXCEPTIONS.—A limitation on obliga8 tions described in clause (i) or (ii) of subpara9 graph (A) shall not apply to any obligation 

10 under— 

11 (i) section 125 of title 23, United 

12 States Code; or 

13 (ii) section 105 of title 23, United 

14 States Code— 

15 (I) for fiscal year 2010, only in 

16 an amount equal to $639,000,000; and 

17 (II) for the period beginning on 

18 October 1, 2010, and ending on Decem19 ber 31, 2010, only in an amount equal 

20 to $159,750,000. 

21 (5) CALCULATIONS FOR DISTRIBUTION OF OBLI22 GATION LIMITATION.—Upon enactment of an Act 

23 making appropriations for the Department of Trans24 portation for fiscal year 2011 (other than an Act or 
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1 resolution making continuing appropriations), the 

2 Secretary shall— 

3 (A) as necessary for purposes of making the 

4 calculations for the distribution of any obliga5 tion limitation under such Act, annualize the 

6 amount of contract authority provided under 

7 this Act for Federal-aid highways and highway 

8 safety construction programs; and 

9 (B) multiply the resulting distribution of 

any obligation limitation under such Act by 1 10 ⁄4. 

11 (d) EXTENSION AND FLEXIBILITY FOR CERTAIN ALLO12 CATED PROGRAMS.— 

13 (1) FISCAL YEAR 2010.—Notwithstanding any 

14 other provision of law, for fiscal year 2010, the por15 tion of the share of funds of a State under subsection 

16 (b)(1) determined by the amount that the State re17 ceived or was authorized to receive for fiscal year 

18 2009 to carry out sections 1301, 1302, 1307, 1702, 

19 and 1934 of the SAFETEA–LU (119 Stat. 1198, 

20 1204, 1217, 1256, and 1485), and section 144(f)(1) of 

21 title 23, United States Code, shall be— 

22 (A) made available to the State for pro23 grams apportioned under sections 104(b) and 

24 144 of title 23, United States Code, and in the 

25 same proportion for each such program that— 
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1 (i) the amount apportioned to the 

2 State for that program for fiscal year 2009; 

3 bears to 

4 (ii) the amount apportioned to the 

5 State for fiscal year 2009 for all programs 

6 apportioned under such sections of such 

7 Code; and 

8 (B) administered in the same manner and 

9 with the same period of availability as such 

10 funding is administered under programs identi11 fied in subparagraph (A), except that no funds 

12 may be used to carry out the project described in 

13 section 1307(d)(1) of the SAFETEA–LU (119 

14 Stat. 1217; 122 Stat. 1577). 

15 (2) FISCAL YEAR 2011.—Notwithstanding any 

16 other provision of law, for the period beginning on 

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

18 the portion of the share of funds of a State under subsection (b)(2) determined by 1 19 ⁄4 of the amount that the 

20 State received or was authorized to receive for fiscal 

21 year 2009 to carry out sections 1301, 1302, 1307, 

22 1702, and 1934 of the SAFETEA–LU (119 Stat. 

23 1198, 1204, 1217, 1256, and 1485) and section 

24 144(f)(1) of title 23, United States Code, shall be— 
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1 (A) made available to the State for pro2 grams apportioned under sections 104(b) and 

3 144 of title 23, United States Code, and in the 

4 same proportion for each such program that— 

5 (i) the amount apportioned to the 

6 State for that program for fiscal year 2009; 

7 bears to 

8 (ii) the amount apportioned to the 

9 State for fiscal year 2009 for all programs 

10 apportioned under such sections of such 

11 Code; and 

12 (B) administered in the same manner and 

13 with the same period of availability as such 

14 funding is administered under programs identi15 fied in subparagraph (A), except that no funds 

16 may be used to carry out the project described in 

17 section 1307(d)(1) of the SAFETEA–LU (119 

18 Stat. 1217; 122 Stat. 1577). 

19 (3) TERRITORIES AND PUERTO RICO.— 

20 (A) FISCAL YEAR 2010.—Notwithstanding 

21 any other provision of law, for fiscal year 2010, 

22 the portion of the share of funds of a territory 

23 or Puerto Rico under paragraph (b)(1) deter24 mined by the amount that the territory or Puer25 to Rico received or was authorized to receive for 
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1 fiscal year 2009 to carry out section 1934 of 

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

3 (i) for a territory, made available and 

4 administered in the same manner as fund5 ing is made available and administered 

6 under section 215 of title 23, United States 

7 Code; and 

8 (ii) for Puerto Rico, made available 

9 and administered in the same manner as 

10 funding is made available and administered 

11 under section 165 of title 23, United States 

12 Code. 

13 (B) FISCAL YEAR 2011.—Notwithstanding 

14 any other provision of law, for the period begin15 ning on October 1, 2010, and ending on Decem16 ber 31, 2010, the portion of the share of funds of 

17 a territory or Puerto Rico under paragraph 

(b)(2) determined by 1 18 ⁄4 of the amount that the 

19 territory or Puerto Rico received or was author20 ized to receive for fiscal year 2009 to carry out 

21 section 1934 of SAFETEA–LU (119 Stat. 1485), 

22 shall be— 

23 (i) for a territory, made available and 

24 administered in the same manner as fund25 ing is made available and administered 
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1 under section 215 of title 23, United States 

2 Code; and 

3 (ii) for Puerto Rico, made available 

4 and administered in the same manner as 

5 funding is made available and administered 

6 under section 165 of title 23, United States 

7 Code. 

8 (C) TERRITORY DEFINED.—In this para9 graph, the term ‘‘territory’’ means any of the fol10 lowing territories of the United States: American 

11 Samoa, the Commonwealth of the Northern Mar12 iana Islands, Guam, or the United States Virgin 

13 Islands. 

14 (4) ADDITIONAL FUNDS.— 

15 (A) IN GENERAL.—No additional funds 

16 shall be provided for any project or activity 

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

18 this subsection, that the Secretary of Transpor19 tation determines was sufficiently funded before 

20 or during fiscal year 2009 to achieve the author21 ized purpose of the project or activity. 

22 (B) RESERVATION AND REDISTRIBUTION OF

23 FUNDS.—Funds made available in accordance 

24 with paragraph (1) or (2) of subsection (c) or 

25 paragraph (1) or (2) of this subsection for a 
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1 project or activity described in subparagraph (A) 

2 shall be— 

3 (i) reserved by the Secretary of Trans4 portation; and 

5 (ii) distributed to each State in accord6 ance with paragraph (1) or (2) of sub7 section (c), or paragraph (1) or (2) of this 

8 subsection, as appropriate, for use in car9 rying out other highway projects and activi10 ties extended by subsection (c) or this sub11 section, in the proportion that— 

12 (I) the total amount of funds 

13 made available for fiscal year 2009 for 

14 projects and activities described in sub15 paragraph (A) in the State; bears to 

16 (II) the total amount of funds 

17 made available for fiscal year 2009 for 

18 those projects and activities in all 

19 States. 

20 (e) EXTENSION OF AUTHORIZATIONS UNDER TITLE V 

21 OF SAFETEA–LU.— 

22 (1) IN GENERAL.—The programs authorized 

23 under paragraphs (1) through (5) of section 5101(a) 

24 of the SAFETEA–LU (119 Stat. 1779) shall be con25 tinued— 
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1 (A) for fiscal year 2010, at the funding lev2 els authorized for those programs for fiscal year 

3 2009; and 

4 (B) for the period beginning on October 1, 

2010, and ending on December 31, 2010, at 1 5 ⁄4

6 the funding levels authorized for those programs 

7 for fiscal year 2009. 

8 (2) DISTRIBUTION OF FUNDS.—Funds for pro9 grams continued under paragraph (1) shall be dis10 tributed to major program areas under those pro11 grams in the same proportions as funds were allo12 cated for those program areas for fiscal year 2009, ex13 cept that designations for specific activities shall not 

14 be required to be continued for— 

15 (A) fiscal year 2010; or 

16 (B) the period beginning on October 1, 

17 2010, and ending on December 31, 2010. 

18 (3) ADDITIONAL FUNDS.— 

19 (A) IN GENERAL.—No additional funds 

20 shall be provided for any project or activity 

21 under this subsection that the Secretary of 

22 Transportation determines was sufficiently fund23 ed before or during fiscal year 2009 to achieve 

24 the authorized purpose of the project or activity. 
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1 (B) DISTRIBUTION.—Funds that would 

2 have been made available under paragraph (1) 

3 for a project or activity but for the prohibition 

4 under subparagraph (A) shall be distributed in 

5 accordance with paragraph (2). 

6 SEC. 412. ADMINISTRATIVE EXPENSES. 

7 (a) AUTHORIZATION OF CONTRACT AUTHORITY.—Not8 withstanding any other provision of this Act or any other 

9 law, there are authorized to be appropriated from the High10 way Trust Fund (other than the Mass Transit Account), 

11 from amounts provided under section 411, for administra12 tive expenses of the Federal-aid highway program— 

13 (1) $422,425,000 for fiscal year 2010; and 

14 (2) $105,606,250 for the period beginning on Oc15 tober 1, 2010, and ending on December 31, 2010. 

16 (b) CONTRACT AUTHORITY.—Funds authorized to be 

17 appropriated by this section shall be— 

18 (1) available for obligation, and shall be admin19 istered, in the same manner as if such funds were ap20 portioned under chapter 1 of title 23, United States 

21 Code; and 

22 (2) subject to a limitation on obligations for Fed23 eral-aid highways and highway safety construction 

24 programs, except that such funds shall remain avail25 able until expended. 
26 

† HR 2847 EAS2 

1 SEC. 413. RESCISSION OF UNOBLIGATED BALANCES. 

2 (a) IN GENERAL.—The Secretary of Transportation 

3 shall restore funds rescinded pursuant to section 10212 of 

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

5 to the States and to the programs from which the funds 

6 were rescinded. 

7 (b) ADMINISTRATION OF FUNDS.—The restored 

8 amounts shall be administered in the same manner as the 

9 funds originally rescinded, except those funds may only be 

10 used with an obligation limitation provided in an Act mak11 ing appropriations for Federal-aid highways and highway 

12 safety construction programs enacted after implementation 

13 of the rescission under section 10212 of the SAFETEA–LU 

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

15 (c) FUNDING.— 

16 (1) IN GENERAL.—There is authorized to be ap17 propriated from the Highway Trust Fund (other than 

18 the Mass Transit Account) for fiscal year 2010 to 

19 carry out this section an amount equal to the amount 

20 of funds rescinded under section 10212 of the 

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

22 1937). 

23 (2) AVAILABILITY FOR OBLIGATION.—Funds au24 thorized to be appropriated by this section shall be— 

25 (A) made available under this section and 

26 available for obligation in the same manner as 
27 

† HR 2847 EAS2 

1 if the funds were apportioned under chapter 1 of 

2 title 23, United States Code, except that the 

3 funds shall retain the characteristics of the funds 

4 originally rescinded; and 

5 (B) subject to a limitation on obligations 

6 for Federal-aid highways and highway safety 

7 construction programs included in an Act mak8 ing appropriations for fiscal year 2010 or a por9 tion of the fiscal year. 

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

11 under this section shall be restored after the end of fiscal 

12 year 2010. 

13 SEC. 414. RECONCILIATION OF FUNDS. 

14 The Secretary shall reduce the amount apportioned or 

15 allocated for a program, project, or activity under this title 

16 by amounts apportioned or allocated pursuant to the Con17 tinuing Appropriations Resolution, 2010 (Public Law 111– 

18 68). 
28 

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1 Subtitle B—National Highway 

2 Traffic Safety Administration, 

3 Federal Motor Carrier Safety 

4 Administration, and Additional 

5 Programs 

6 SEC. 421. EXTENSION OF NATIONAL HIGHWAY TRAFFIC 

7 SAFETY ADMINISTRATION HIGHWAY SAFETY 

8 PROGRAMS. 

9 (a) CHAPTER 4 HIGHWAY SAFETY PROGRAMS.—Sec10 tion 2001(a)(1) of the SAFETEA–LU (119 Stat. 1519) is 

11 amended— 

12 (1) by striking ‘‘and’’; and 

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

14 $235,000,000 for fiscal year 2010, and $58,750,000 

15 for the period beginning on October 1, 2010, and end16 ing on December 31, 2010.’’. 

17 (b) HIGHWAY SAFETY RESEARCH AND DEVELOP18 MENT.—Section 2001(a)(2) of the SAFETEA–LU (119 

19 Stat. 1519) is amended— 

20 (1) by striking ‘‘and’’; and 

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

22 $107,329,000 for fiscal year 2010, and $27,061,000 

23 for the period beginning on October 1, 2010, and end24 ing on December 31, 2010.’’. 

25 (c) OCCUPANT PROTECTION INCENTIVE GRANTS.— 
29 

† HR 2847 EAS2 

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

2 title 23, United States Code, is amended— 

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

4 inserting ‘‘8’’; and 

5 (B) in paragraph (4)(C), by striking ‘‘fifth 

6 and sixth’’ and inserting ‘‘fifth through eighth’’. 

7 (2) AUTHORIZATION OF APPROPRIATIONS.—Sec8 tion 2001(a)(3) of the SAFETEA–LU (119 Stat. 

9 1519) is amended— 

10 (A) by striking ‘‘and’’; and 

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

12 ‘‘2009, $25,000,000 for fiscal year 2010, and 

13 $6,250,000 for the period beginning on October 

14 1, 2010, and ending on December 31, 2010.’’. 

15 (d) SAFETY BELT PERFORMANCE GRANTS.—Section 

16 2001(a)(4) of the SAFETEA–LU (119 Stat. 1519) is 

17 amended— 

18 (1) by striking ‘‘and’’; and 

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

20 $124,500,000 for fiscal year 2010, and $31,125,000 

21 for the period beginning on October 1, 2010, and end22 ing on December 31, 2010.’’. 

23 (e) STATE TRAFFIC SAFETY INFORMATION SYSTEM IM24 PROVEMENTS.—Section 2001(a)(5) of the SAFETEA–LU 

25 (119 Stat. 1519) is amended— 
30 

† HR 2847 EAS2 

1 (1) by striking ‘‘and’’; and 

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

3 $34,500,000 for fiscal year 2010, and $8,625,000 for 

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

5 on December 31, 2010.’’. 

6 (f) ALCOHOL-IMPAIRED DRIVING COUNTERMEASURES

7 INCENTIVE GRANT PROGRAM.— 

8 (1) EXTENSION OF PROGRAM.—Section 410 of 

9 title 23, United States Code, is amended— 

10 (A) in subsection (a)(3)(C), by striking 

11 ‘‘fifth, sixth, seventh, and eighth’’ and inserting 

12 ‘‘fifth through tenth’’; and 

13 (B) in subsection (b)(2)(C), by striking 

14 ‘‘2008 and 2009’’ and inserting ‘‘2008, 2009, 

15 2010, and 2011’’. 

16 (2) AUTHORIZATION OF APPROPRIATIONS.—Sec17 tion 2001(a)(6) of the SAFETEA–LU (119 Stat. 

18 1519) is amended— 

19 (A) by striking ‘‘and’’; and 

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

21 ‘‘2009, $139,000,000 for fiscal year 2010, and 

22 $34,750,000 for the period beginning on October 

23 1, 2010, and ending on December 31, 2010.’’. 
31 

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1 (g) NATIONAL DRIVER REGISTER.—Section 

2 2001(a)(7) of the SAFETEA–LU (119 Stat. 1520) is 

3 amended— 

4 (1) by striking ‘‘and’’; and 

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

6 $4,078,000 for fiscal year 2010, and $1,029,000 for 

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

8 on December 31, 2010.’’. 

9 (h) HIGH VISIBILITY ENFORCEMENT PROGRAM.— 

10 (1) EXTENSION OF PROGRAM.—Section 2009(a) 

11 of the SAFETEA–LU (23 U.S.C. 402 note) is amend12 ed by striking ‘‘2009’’ and inserting ‘‘2011’’. 

13 (2) AUTHORIZATION OF APPROPRIATIONS.—Sec14 tion 2001(a)(8) of the SAFETEA–LU (119 Stat. 

15 1520) is amended— 

16 (A) by striking ‘‘and’’; and 

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

18 ‘‘2009, $29,000,000 for fiscal year 2010, and 

19 $7,250,000 for the period beginning on October 

20 1, 2010, and ending on December 31, 2010.’’. 

21 (i) MOTORCYCLIST SAFETY.— 

22 (1) EXTENSION OF PROGRAM.—Section 

23 2010(d)(1)(B) of the SAFETEA–LU (23 U.S.C. 402 

24 note) is amended by striking ‘‘and fourth’’ and insert25 ing ‘‘fourth, fifth, and sixth’’. 
32 

† HR 2847 EAS2 

1 (2) AUTHORIZATION OF APPROPRIATIONS.—Sec2 tion 2001(a)(9) of the SAFETEA–LU (119 Stat. 

3 1520) is amended— 

4 (A) by striking ‘‘and’’; and 

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

6 ‘‘2009, $7,000,000 for fiscal year 2010, and 

7 $1,750,000 for the period beginning on October 

8 1, 2010, and ending on December 31, 2010.’’. 

9 (j) CHILD SAFETY AND CHILD BOOSTER SEAT SAFETY

10 INCENTIVE GRANTS.— 

11 (1) EXTENSION OF PROGRAM.—Section 

12 2011(c)(2) of the SAFETEA–LU (23 U.S.C. 405 

13 note) is amended by striking ‘‘fourth fiscal year’’ and 

14 inserting ‘‘fourth, fifth, and sixth fiscal years’’. 

15 (2) AUTHORIZATION OF APPROPRIATIONS.—Sec16 tion 2001(a)(10) of the SAFETEA–LU (119 Stat. 

17 1520) is amended— 

18 (A) by striking ‘‘and’’; and 

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

20 ‘‘2009, $7,000,000 for fiscal year 2010, and 

21 $1,750,000 for the period beginning on October 

22 1, 2010, and ending on December 31, 2010.’’. 

23 (k) ADMINISTRATIVE EXPENSES.—Section 2001(a)(11) 

24 of the SAFETEA–LU (119 Stat. 1520) is amended— 
33 

† HR 2847 EAS2 

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

2 and 

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

4 $25,047,000 for fiscal year 2010, and $6,332,000 for 

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

6 on December 31, 2010.’’. 

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

8 the SAFETEA–LU (119 Stat. 1520) is amended by striking 

9 ‘‘2009’’ and inserting ‘‘2011’’. 

10 (m) DRUG-IMPAIRED DRIVING ENFORCEMENT.—Sec11 tion 2013(f) of the SAFETEA–LU (23 U.S.C. 403 note) is 

12 amended by striking ‘‘2009’’ and inserting ‘‘2011’’. 

13 (n) OLDER DRIVER SAFETY; LAW ENFORCEMENT

14 TRAINING.—Section 2017 of the SAFETEA–LU is amend15 ed— 

16 (1) in subsection (a)(1) (119 Stat. 1541), by 

17 striking ‘‘2009’’ and inserting ‘‘2011’’; and 

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

19 striking ‘‘2009’’ and inserting ‘‘2011’’. 

20 SEC. 422. EXTENSION OF FEDERAL MOTOR CARRIER SAFE21 TY ADMINISTRATION PROGRAMS. 

22 (a) MOTOR CARRIER SAFETY GRANTS.—Section 

23 31104(a) of title 49, United States Code, is amended— 

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

25 end; 
34 

† HR 2847 EAS2 

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

2 the end and inserting ‘‘; and’’; and 

3 (3) by adding at the end the following: 

4 ‘‘(6) $209,000,000 for fiscal year 2010; and 

5 ‘‘(7) $52,679,000 for the period beginning on Oc6 tober 1, 2010, and ending on December 31, 2010.’’. 

7 (b) ADMINISTRATIVE EXPENSES.—Section 31104(i)(1) 

8 of title 49, United States Code, is amended— 

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

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

11 at the end and inserting ‘‘; and’’; and 

12 (3) by adding at the end the following: 

13 ‘‘(F) ‘‘(F) $239,828,000 for fiscal year 2010; 

14 and 

15 ‘‘(G) ‘‘(G) $61,036,000 for the period begin16 ning on October 1, 2010, and ending on Decem17 ber 31, 2010.’’. 

18 (c) GRANT PROGRAMS.—Section 4101(c) of the 

19 SAFETEA–LU (119 Stat. 1715) is amended— 

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

21 inserting ‘‘2009, and $25,000,000 for fiscal year 

22 2010, and $6,301,000 for the period beginning on Oc23 tober 1, 2010, and ending on December 31, 2010.’’; 

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

25 inserting ‘‘2009, $32,000,000 for fiscal year 2010, 
35 

† HR 2847 EAS2 

1 and $8,066,000 for the period beginning on October 

2 1, 2010, and ending on December 31, 2010.’’; 

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

4 inserting ‘‘2009, $5,000,000 for fiscal year 2010, and 

5 $1,260,000 for the period beginning on October 1, 

6 2010, and ending on December 31, 2010.’’; 

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

8 inserting ‘‘2009, $25,000,000 for fiscal year 2010, 

9 and $6,301,000 for the period beginning on October 

10 1, 2010, and ending on December 31, 2010.’’; and 

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

12 inserting ‘‘2009, $3,000,000 for fiscal year 2010, and 

13 $756,000 for the period beginning on October 1, 2010, 

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

15 (d) HIGH-PRIORITY ACTIVITIES.—Section 31104(k) of 

16 title 49, United States Code, is amended by striking ‘‘2009’’ 

17 in paragraph (2) and inserting ‘‘2009, $15,000,000 for fis18 cal year 2010, and $3,781,000 for the period beginning on 

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

20 (e) NEW ENTRANT AUDITS.—Section 31144(g)(5)(B) 

21 of title 49, United States Code, is amended by inserting 

22 ‘‘(and up to $7,310,000 for the period beginning on October 

23 1, 2010, and ending on December 31, 2010)’’ after ‘‘fiscal 

24 year’’. 
36 

† HR 2847 EAS2 

1 (f) COMMERCIAL DRIVER’S LICENSE INFORMATION

2 SYSTEM MODERNIZATION.—Section 4123(d) of the 

3 SAFETEA–LU (119 Stat. 1736) is amended— 

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

5 end; 

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

7 the end and inserting a semicolon; and 

8 (3) by adding at the end the following: 

9 ‘‘(5) $8,000,000 for fiscal year 2010; and 

10 ‘‘(6) $2,016,000 for the period beginning on Oc11 tober 1, 2010, and ending on December 31, 2010.’’. 

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

13 the SAFETEA–LU (119 Stat. 1741) is amended by striking 

14 ‘‘and 2009’’ and inserting ‘‘2009, and 2010, and $252,000 

15 to the Federal Motor Carrier Safety Administration, and 

16 $756,000 to the National Highway Traffic Safety Adminis17 tration, for the period beginning on October 1, 2010, and 

18 ending on December 31, 2010,’’. 

19 (h) GRANT PROGRAM FOR COMMERCIAL MOTOR VEHI20 CLE OPERATORS.—Section 4134(c) of the SAFETEA–LU 

21 (119 Stat. 1744) is amended by striking ‘‘2009’’ and insert22 ing ‘‘2009, 2010, and $252,000 for the period beginning on 

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

24 (i) MOTOR CARRIER SAFETY ADVISORY COM25 MITTEE.—Section 4144(d) of the SAFETEA–LU (1119 
37 

† HR 2847 EAS2 

1 Stat. 1748) is amended by striking ‘‘September 30, 2010’’ 

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

3 (j) WORKING GROUP FOR DEVELOPMENT OF PRAC4 TICES AND PROCEDURES TO ENHANCE FEDERAL-STATE

5 RELATIONS.—Section 4213(d) of the SAFETEA–LU (49 

6 U.S.C. 14710 note) is amended by striking ‘‘September 30, 

7 2009’’ and inserting ‘‘December 31, 2010’’. 

8 SEC. 423. ADDITIONAL PROGRAMS. 

9 (a) HAZARDOUS MATERIALS RESEARCH PROJECTS.— 

10 Section 7131(c) of the SAFETEA–LU (119 Stat. 1910) is 

11 amended by striking ‘‘through 2009’’ and inserting 

12 ‘‘through 2010, and $315,000 for the period beginning on 

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

14 (b) DINGELL-JOHNSON SPORT FISH RESTORATION

15 ACT.—Section 4 of the Dingell-Johnson Sport Fish Restora16 tion Act (16 U.S.C. 777c) is amended— 

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

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

19 ‘‘2010 and for the period beginning on October 1, 

20 2010, and ending on December 31, 2010,’’; and 

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

22 and inserting ‘‘and for the period beginning on Octo23 ber 1, 2010, and ending on December 31, 2010,’’. 
38 

† HR 2847 EAS2 

1 Subtitle C—Public Transportation 

2 Programs 

3 SEC. 431. ALLOCATION OF FUNDS FOR PLANNING PRO4 GRAMS. 

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

6 amended by striking ‘‘2009’’ and inserting ‘‘2010, and for 

7 the period beginning October 1, 2010, and ending December 

8 31, 2010,’’. 

9 SEC. 432. SPECIAL RULE FOR URBANIZED AREA FORMULA 

10 GRANTS. 

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

12 amended— 

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

14 and inserting ‘‘2010, AND THE PERIOD BEGINNING OC15 TOBER 1, 2010, AND ENDING DECEMBER 31, 2010’’; 

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

17 and inserting ‘‘2010, and the period beginning Octo18 ber 1, 2010, and ending December 31, 2010,’’; and 

19 (3) in subparagraph (E)— 

20 (A) in the subparagraph heading, by strik21 ing ‘‘AND 2009’’ and inserting ‘‘THROUGH 2010

22 AND DURING THE PERIOD BEGINNING OCTOBER

23 1, 2010, AND ENDING DECEMBER 31, 2010’’; and 

24 (B) in the matter preceding clause (i), by 

25 striking ‘‘and 2009’’ and inserting ‘‘through 
39 

† HR 2847 EAS2 

1 2010, and during the period beginning October 

2 1, 2010, and ending December 31, 2010,’’. 

3 SEC. 433. ALLOCATING AMOUNTS FOR CAPITAL INVEST4 MENT GRANTS. 

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

6 amended— 

7 (1) in paragraph (2)— 

8 (A) in the heading, by striking ‘‘2009’’ and 

9 inserting ‘‘2010 AND OCTOBER 1, 2010, THROUGH

10 DECEMBER 31, 2010’’; 

11 (B) in the matter preceding subparagraph 

12 (A), by striking ‘‘2009’’ and inserting ‘‘2010, 

13 and during the period beginning October 1, 

14 2010, and ending December 31, 2010,’’; and 

15 (C) in subparagraph (A)(i), by striking 

16 ‘‘2009’’ and inserting ‘‘2010, and $50,000,000 

17 for the period beginning October 1, 2010, and 

18 ending December 31, 2010,’’; 

19 (2) in paragraph (6)— 

20 (A) in subparagraph (B), by striking 

21 ‘‘2009’’ and inserting ‘‘2010, and $3,750,000 

22 shall be available for the period beginning Octo23 ber 1, 2010, and ending December 31, 2010,’’; 

24 and 
40 

† HR 2847 EAS2 

1 (B) in subparagraph (C), by striking 

2 ‘‘2009’’ and inserting ‘‘2010, and $1,250,000 

3 shall be available for the period beginning Octo4 ber 1, 2010 and ending December 31, 2010,’’; 

5 and 

6 (3) in paragraph (7)— 

7 (A) in subparagraph (A)— 

8 (i) by redesignating clauses (i) through 

9 (viii) as subclauses (I) through (VIII), re10 spectively; 

11 (ii) in the matter preceding subclause 

12 (I), as so redesignated, by striking 

13 ‘‘$10,000,000’’ and all that follows through 

14 ‘‘2009’’ and inserting the following: 

15 ‘‘(i) FISCAL YEARS 2006 THROUGH

16 2010.—$10,000,000 shall be available in 

17 each of fiscal years 2006 through 2010’’; 

18 and 

19 (iii) by inserting after subclause 

20 (VIII), as so redesignated, the following: 

21 ‘‘(ii) SPECIAL RULE FOR OCTOBER 1, 

22 2010, THROUGH DECEMBER 31, 2010.— 

23 $2,500,000 shall be available in the period 

24 beginning October 1, 2010, and ending De25 cember 31, 2010, for ferry boats or ferry ter-
41 

† HR 2847 EAS2 

1 minal facilities. The Secretary shall set 

2 aside a portion of such amount in accord3 ance with clause (i), except that the Sec4 retary shall set aside 25 percent of each dol5 lar amount specified in subclauses (I) 

6 through (VIII).’’;’’. 

7 (B) in subparagraph (B), by inserting after 

8 ‘‘2009.’’ the following: 

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

10 ‘‘(vi) $3,375,000 for the period begin11 ning October 1, 2010, and ending December 

12 31, 2010.’’; 

13 (C) in subparagraph (C), by inserting ‘‘, 

14 and during the period beginning October 1, 

15 2010, and ending December 31, 2010,’’ after ‘‘fis16 cal year’’; 

17 (D) in subparagraph (D), by inserting ‘‘, 

18 and not less than $8,750,000 shall be available 

19 for the period beginning October 1, 2010, and 

20 ending December 31, 2010,’’ after ‘‘year’’; and 

21 (E) in subparagraph (E), by inserting ‘‘, 

22 and $750,000 shall be available for the period be23 ginning October 1, 2010, and ending December 

24 31, 2010,’’ after ‘‘year’’. 
42 

† HR 2847 EAS2 

1 SEC. 434. APPORTIONMENT OF FORMULA GRANTS FOR 

2 OTHER THAN URBANIZED AREAS. 

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

4 amended by adding at the end the following: 

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

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

7 October 1, 2010, and ending December 31, 

8 2010.’’. 

9 SEC. 435. APPORTIONMENT BASED ON FIXED GUIDEWAY 

10 FACTORS. 

11 Section 5337 of title 49, United States Code, is amend12 ed— 

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

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

15 ‘‘2010’’; and 

16 (2) by adding at the end the following: 

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

18 DECEMBER 31, 2010.—The Secretary shall apportion 

19 amounts made available for fixed guideway modernization 

20 under section 5309 for the period beginning October 1, 

21 2010, and ending December 31, 2010, in accordance with 

22 subsection (a), except that the Secretary shall apportion 25 

23 percent of each dollar amount specified in subsection (a).’’. 
43 

† HR 2847 EAS2 

1 SEC. 436. AUTHORIZATIONS FOR PUBLIC TRANSPOR2 TATION. 

3 (a) FORMULA AND BUS GRANTS.—Section 5338(b) of 

4 title 49, United States Code, is amended— 

5 (1) in paragraph (1)— 

6 (A) in subparagraph (C), by striking ‘‘and’’ 

7 at the end; 

8 (B) in subparagraph (D), by striking the 

9 period at the end and inserting a semicolon; and 

10 (C) by adding at the end the following: 

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

12 and 

13 ‘‘(F) $2,090,141,250 for the period begin14 ning October 1, 2010, and ending December 31, 

15 2010.’’; and 

16 (2) in paragraph (2)— 

17 (A) in subparagraph (A), by striking ‘‘and 

18 $113,500,000 for fiscal year 2009’’ and inserting 

19 ‘‘$113,500,000 for each of fiscal years 2009 and 

20 2010, and $28,375,000 for the period beginning 

21 October 1, 2010, and ending December 31, 

22 2010,’’; 

23 (B) in subparagraph (B), by striking ‘‘and 

24 $4,160,365,000 for fiscal year 2009’’ and insert25 ing ‘‘$4,160,365,000 for each of fiscal years 2009 

26 and 2010, and $1,040,091,250 for the period be-
44 

† HR 2847 EAS2 

1 ginning October 1, 2010, and ending December 

2 31, 2010,’’; 

3 (C) in subparagraph (C), by striking ‘‘and 

4 $51,500,000 for fiscal year 2009’’ and inserting 

5 ‘‘$51,500,000 for each of fiscal years 2009 and 

6 2010, and $12,875,000 for the period beginning 

7 October 1, 2010, and ending December 31, 

8 2010,’’; 

9 (D) in subparagraph (D), by striking ‘‘and 

10 $1,666,500,000 for fiscal year 2009’’ and insert11 ing ‘‘$1,666,500,000 for each of fiscal years 2009 

12 and 2010, and $416,625,000 for the period be13 ginning October 1, 2010 and ending December 

14 31, 2010,’’; 

15 (E) in subparagraph (E), by striking ‘‘and 

16 $984,000,000 for fiscal year 2009’’ and inserting 

17 ‘‘$984,000,000 for each of fiscal years 2009 and 

18 2010, and $246,000,000 for the period beginning 

19 October 1, 2010 and ending December 31, 

20 2010,’’; 

21 (F) in subparagraph (F), by striking ‘‘and 

22 $133,500,000 for fiscal year 2009’’ and inserting 

23 ‘‘$133,500,000 for each of fiscal years 2009 and 

24 2010, and $33,375,000 for the period beginning 
45 

† HR 2847 EAS2 

1 October 1, 2010 and ending December 31, 

2 2010,’’; 

3 (G) in subparagraph (G), by striking ‘‘and 

4 $465,000,000 for fiscal year 2009’’ and inserting 

5 ‘‘$465,000,000 for each of fiscal years 2009 and 

6 2010, and $116,250,000 for the period beginning 

7 October 1, 2010 and ending December 31, 

8 2010,’’; 

9 (H) in subparagraph (H), by striking ‘‘and 

10 $164,500,000 for fiscal year 2009’’ and inserting 

11 ‘‘$164,500,000 for each of fiscal years 2009 and 

12 2010, and $41,125,000 for the period beginning 

13 October 1, 2010 and ending December 31, 

14 2010,’’; 

15 (I) in subparagraph (I), by striking ‘‘and 

16 $92,500,000 for fiscal year 2009’’ and inserting 

17 ‘‘$92,500,000 for each of fiscal years 2009 and 

18 2010, and $23,125,000 for the period beginning 

19 October 1, 2010 and ending December 31, 

20 2010,’’; 

21 (J) in subparagraph (J), by striking ‘‘and 

22 $26,900,000 for fiscal year 2009’’ and inserting 

23 ‘‘$26,900,000 for each of fiscal years 2009 and 

24 2010, and $6,725,000 for the period beginning 
46 

† HR 2847 EAS2 

1 October 1, 2010 and ending December 31, 

2 2010,’’; 

3 (K) in subparagraph (K), by striking ‘‘and 

4 $3,500,000 for fiscal year 2009’’ and inserting 

5 ‘‘$3,500,000 for each of fiscal years 2009 and 

6 2010, and $875,000 for the period beginning Oc7 tober 1, 2010 and ending December 31, 2010,’’; 

8 (L) in subparagraph (L), by striking ‘‘and 

9 $25,000,000 for fiscal year 2009’’ and inserting 

10 ‘‘$25,000,000 for each of fiscal years 2009 and 

11 2010, and $6,250,000 for the period beginning 

12 October 1, 2010 and ending December 31, 

13 2010,’’; 

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

15 $465,000,000 for fiscal year 2009’’ and inserting 

16 ‘‘$465,000,000 for each of fiscal years 2009 and 

17 2010, and $116,250,000 for the period beginning 

18 October 1, 2010 and ending December 31, 

19 2010,’’; and 

20 (N) in subparagraph (N), by striking ‘‘and 

21 $8,800,000 for fiscal year 2009’’ and inserting 

22 ‘‘$8,800,000 for each of fiscal years 2009 and 

23 2010, and $2,200,000 for the period beginning 

24 October 1, 2010 and ending December 31, 

25 2010,’’. 
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† HR 2847 EAS2 

1 (b) CAPITAL INVESTMENT GRANTS.—Section 5338(c) 

2 of title 49, United States Code, is amended— 

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

4 end; 

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

6 the end and inserting a semicolon; and 

7 (3) by adding at the end the following: 

8 ‘‘(5) $2,000,000,000 for fiscal year 2010; and 

9 ‘‘(6) $500,000,000 for the period of October 1, 

10 2010 through December 31, 2010.’’. 

11 (c) RESEARCH AND UNIVERSITY RESEARCH CEN12 TERS.—Section 5338(d) of title 49, United States Code, is 

13 amended— 

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

15 subparagraph (A), by striking ‘‘and $69,750,000 for 

16 fiscal year 2009’’ and inserting ‘‘$69,750,000 for each 

17 of fiscal years 2009 and 2010, and $17,437,500 for 

18 the period beginning October 1, 2010, and ending De19 cember 31, 2010’’; and 

20 (2) by adding at the end the following: 

21 ‘‘(3) ADDITIONAL AUTHORIZATIONS.— 

22 ‘‘(A) IN GENERAL.— 

23 ‘‘(i) FISCAL YEAR 2010.—Of amounts 

24 authorized to be appropriated for fiscal year 

25 2010 under paragraph (1), the Secretary 
48 

† HR 2847 EAS2 

1 shall allocate for each of the activities and 

2 projects described in subparagraphs (A) 

3 through (F) of paragraph (1) an amount 

4 equal to the amount allocated for fiscal year 

5 2009 under each such subparagraph. 

6 ‘‘(ii) OCTOBER 1, 2010 THROUGH DE7 CEMBER 31, 2010.—Of amounts authorized 

8 to be appropriated for the period beginning 

9 October 1, 2010, through December 31, 

10 2010, under paragraph (1), the Secretary 

11 shall allocate for each of the activities and 

12 projects described in subparagraphs (A) 

13 through (F) of paragraph (1) an amount 

14 equal to 25 percent of the amount allocated 

15 for fiscal year 2009 under each such sub16 paragraph. 

17 ‘‘(B) UNIVERSITY CENTERS PROGRAM.— 

18 ‘‘(i) FISCAL YEAR 2010.—Of the 

19 amounts allocated under subparagraph 

20 (A)(i) for the university centers program 

21 under section 5506 for fiscal year 2010, the 

22 Secretary shall allocate for each program 

23 described in clauses (i) through (iii) and (v) 

24 through (viii) of paragraph (2)(A) an 
49 

† HR 2847 EAS2 

1 amount equal to the amount allocated for 

2 fiscal year 2009 under each such clause. 

3 ‘‘(ii) OCTOBER 1, 2010 THROUGH DE4 CEMBER 31, 2010.—Of the amounts allocated 

5 under subparagraph (A)(i) for the univer6 sity centers program under section 5506 for 

7 the period beginning October 1, 2010, and 

8 ending December 31, 2010, the Secretary 

9 shall allocate for each program described in 

10 clauses (i) through (iii) and (v) through 

11 (viii) of paragraph (2)(A) an amount equal 

12 to 25 percent of the amount allocated for 

13 fiscal year 2009 under each such clause. 

14 ‘‘(iii) FUNDING.—If the Secretary de15 termines that a project or activity described 

16 in paragraph (2) received sufficient funds 

17 in fiscal year 2009, or a previous fiscal 

18 year, to carry out the purpose for which the 

19 project or activity was authorized, the Sec20 retary may not allocate any amounts under 

21 clause (i) or (ii) for the project or activity 

22 for fiscal year 2010, or any subsequent fis23 cal year.’’. 

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

25 United States Code, is amended— 
50 

† HR 2847 EAS2 

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

2 end; 

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

4 the end and inserting a semicolon; and 

5 (3) by adding at the end the following: 

6 ‘‘(5) $98,911,000 for fiscal year 2010; and 

7 ‘‘(6) $24,727,750 for the period beginning Octo8 ber 1, 2010, and ending December 31, 2010.’’. 

9 SEC. 437. AMENDMENTS TO SAFETEA–LU. 

10 (a) CONTRACTED PARATRANSIT PILOT.—Section 

11 3009(i)(1) of the SAFETEA–LU (Public Law 109–59; 119 

12 Stat. 1572) is amended by striking ‘‘2009’’ and inserting 

13 ‘‘2010, and for the period beginning October 1, 2010, and 

14 ending December 31, 2010’’. 

15 (b) PUBLIC-PRIVATE PARTNERSHIP PILOT PRO16 GRAM.—Section 3011 of the SAFETEA–LU (49 U.S.C. 

17 5309 note) is amended— 

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

19 inserting ‘‘2010 and the period beginning October 1, 

20 2010, and ending December 31, 2010’’; and 

21 (2) in subsection (d), by striking ‘‘2009’’ and in22 serting ‘‘2010, and for the period beginning October 

23 1, 2010, and ending December 31, 2010’’. 

24 (c) ELDERLY INDIVIDUALS AND INDIVIDUALS WITH

25 DISABILITIES PILOT PROGRAM.—Section 3012(b)(8) of the 
51 

† HR 2847 EAS2 

1 SAFETEA–LU (49 U.S.C. 5310 note) is amended by strik2 ing ‘‘September 30, 2009’’ and inserting ‘‘December 31, 

3 2010’’. 

4 (d) OBLIGATION CEILING.—Section 3040 of the 

5 SAFETEA–LU (Public Law 109–59; 119 Stat. 1639) is 

6 amended— 

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

8 end; 

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

10 the end and inserting a semicolon; and 

11 (3) by adding at the end the following: 

12 ‘‘(6) $10,507,752,000 for fiscal year 2010, of 

13 which not more than $8,360,565,000 shall be from the 

14 Mass Transit Account; and 

15 ‘‘(7) $2,626,938,000 for the period beginning Oc16 tober 1, 2010, and ending December 31, 2010, of 

17 which not more than $2,090,141,250 shall be from the 

18 Mass Transit Account.’’. 

19 (e) PROJECT AUTHORIZATIONS FOR NEW FIXED

20 GUIDEWAY CAPITAL PROJECTS.—Section 3043 of the 

21 SAFETEA–LU (Public Law 109–59; 119 Stat. 1640) is 

22 amended— 

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

24 paragraph (1), by striking ‘‘2009’’ and inserting 
52 

† HR 2847 EAS2 

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

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

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

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

5 ‘‘2010, and for the period beginning October 1, 2010, 

6 and ending December 31, 2010,’’. 

7 (f) ALLOCATIONS FOR NATIONAL RESEARCH AND

8 TECHNOLOGY PROGRAMS.—Section 3046 of the 

9 SAFETEA–LU (49 U.S.C. 5338 note) is amended— 

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

11 after ‘‘fiscal year’’; and 

12 (2) by adding at the end the following: 

13 ‘‘(c) ADDITIONAL APPROPRIATIONS.—The Secretary 

14 shall allocate amounts appropriated pursuant to section 

15 5338(d) of title 49, United States Code, for national re16 search and technology programs under sections 5312, 5314, 

17 and 5322 of such title— 

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

19 the amounts allocated for fiscal year 2009 under each 

20 of paragraphs (2), (3), (5), (6), and (8) through (25) 

21 of subsection (a); and 

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

23 and ending December 31, 2010, in amounts equal to 

24 25 percent of the amounts allocated for fiscal year 
53 

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1 2009 under each of paragraphs (2), (3), (5), (6), and 

2 (8) through (25) of subsection (a). 

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

4 project or activity described in subsection (a) received suffi5 cient funds in fiscal year 2009, or a previous fiscal year, 

6 to carry out the purpose for which the project or activity 

7 was authorized, the Secretary may not allocate any 

8 amounts under subsection (c) for the project or activity for 

9 fiscal year 2010, or any subsequent fiscal year.’’. 

10 Subtitle D—Revenue Provisions 

11 SEC. 441. REPEAL OF PROVISION PROHIBITING THE CRED12 ITING OF INTEREST TO THE HIGHWAY TRUST 

13 FUND. 

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

15 amended by striking subparagraph (B). 

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

17 amended by paragraph (1), is further amended— 

18 (1) by striking ‘‘, and’’ at the end of subpara19 graph (A) and inserting a period; and 

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

21 subparagraph (A) and all that follows through ‘‘the 

22 opening balance’’ and inserting ‘‘1998, the opening 

23 balance’’. 
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1 (c) EFFECTIVE DATE.—The amendments made by this 

2 section shall take effect on the date of the enactment of this 

3 title. 

4 SEC. 442. RESTORATION OF CERTAIN FOREGONE INTEREST 

5 TO HIGHWAY TRUST FUND. 

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

7 amended to read as follows: 

8 ‘‘(2) RESTORATION OF FOREGONE INTEREST.— 

9 Out of money in the Treasury not otherwise appro10 priated, there is hereby appropriated— 

11 ‘‘(A) $14,700,000,000 to the Highway Ac12 count (as defined in subsection (e)(5)(B)) in the 

13 Highway Trust Fund; and 

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

15 Account in the Highway Trust Fund.’’. 

16 (b) CONFORMING AMENDMENT.—Paragraph (1) of sec17 tion 9503(e) is amended by striking ‘‘this subsection’’ and 

18 inserting ‘‘this section’’. 

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

20 section shall take effect on the date of the enactment of this 

21 Act. 
55 

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1 SEC. 443. TREATMENT OF CERTAIN AMOUNTS APPRO2 PRIATED TO HIGHWAY TRUST FUND. 

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

4 Act, is amended by adding at the end the following new 

5 paragraph: 

6 ‘‘(4) TREATMENT OF APPROPRIATED AMOUNTS.— 

7 Any amount appropriated under this subsection to 

8 the Highway Trust Fund shall remain available 

9 without fiscal year limitation.’’. 

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

11 section shall take effect on the date of the enactment of this 

12 Act. 

13 SEC. 444. TERMINATION OF TRANSFERS FROM HIGHWAY 

14 TRUST FUND FOR CERTAIN REPAYMENTS 

15 AND CREDITS. 

16 (a) IN GENERAL.—Section 9503(c) is amended by 

17 striking paragraph (2) and by redesignating paragraphs 

18 (3), (4), (5), and (6) as paragraphs (2), (3), (4), and (5), 

19 respectively. 

20 (b) CONFORMING AMENDMENTS.— 

21 (1) Section 9502(a) is amended by striking ‘‘sec22 tion 9503(c)(7)’’ and inserting ‘‘section 9503(c)(5)’’. 

23 (2) Section 9503(b)(4)(D) is amended by strik24 ing ‘‘paragraph (4)(D) or (5)(B)’’ and inserting 

25 ‘‘paragraph (3)(D) or (4)(B)’’. 
56 

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1 (3) Paragraph (2) of section 9503(c), as redesig2 nated by subsection (a), is amended by adding at the 

3 end the following new sentence: ‘‘The amounts pay4 able from the Highway Trust Fund under the pre5 ceding sentence shall be determined by taking into ac6 count only the portion of the taxes which are depos7 ited into the Highway Trust Fund.’’. 

8 (4) Section 9503(e)(5)(A) is amended by striking 

9 ‘‘(2), (3), and (4)’’ and inserting ‘‘(2) and (3)’’. 

10 (5) Section 9504(a) is amended by striking ‘‘sec11 tion 9503(c)(4), section 9503(c)(5)’’ and inserting 

12 ‘‘section 9503(c)(3), section 9503(c)(4)’’. 

13 (6) Section 9504(b)(2) is amended by striking 

14 ‘‘section 9503(c)(5)’’ and inserting ‘‘section 

15 9503(c)(4)’’. 

16 (7) Section 9504(e) is amended by striking ‘‘sec17 tion 9503(c)(4)’’ and inserting section ‘‘9503(c)(3)’’. 

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

19 section shall apply to transfers relating to amounts paid 

20 and credits allowed after the date of the enactment of this 

21 Act. 

22 SEC. 445. EXTENSION OF AUTHORITY FOR EXPENDITURES. 

23 (a) HIGHWAYS TRUST FUND.— 

24 (1) HIGHWAY ACCOUNT.—Paragraph (1) of sec25 tion 9503(c) is amended— 
57 

† HR 2847 EAS2 

1 (A) by striking ‘‘September 30, 2009 (Octo2 ber 1, 2009’’ and inserting ‘‘December 31, 2010 

3 (January 1, 2011’’; and 

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

5 and inserting ‘‘under the Surface Transportation 

6 Extension Act of 2010 or any other provision of 

7 law which was referred to in this paragraph be8 fore the date of the enactment of such Act (as 

9 such Act and provisions of law are in effect on 

10 the date of the enactment of such Act).’’. 

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

12 section 9503(e) is amended— 

13 (A) by striking ‘‘October 1, 2009’’ and in14 serting ‘‘January 1, 2011’’; and 

15 (B) by striking ‘‘in accordance with’’ and 

16 all that follows and inserting ‘‘in accordance 

17 with the Surface Transportation Extension Act 

18 of 2010 or any other provision of law which was 

19 referred to in this paragraph before the date of 

20 the enactment of such Act (as such Act and pro21 visions of law are in effect on the date of the en22 actment of such Act).’’. 

23 (3) EXCEPTION TO LIMITATION ON TRANS24 FERS.—Subparagraph (B) of section 9503(b)(6) is 

25 amended by striking ‘‘September 30, 2009 (October 1, 
58 

† HR 2847 EAS2 

1 2009’’ and inserting ‘‘December 31, 2010 (January 1, 

2 2011’’. 

3 (b) SPORT FISH RESTORATION AND BOATING TRUST

4 FUND.— 

5 (1) IN GENERAL.—Paragraph (2) of section 

6 9504(b) is amended— 

7 (A) by striking ‘‘(as in effect’’ in subpara8 graph (A) and all that follows in such subpara9 graph and inserting ‘‘(as in effect on the date of 

10 the enactment of the Surface Transportation Ex11 tension Act of 2010),’’, 

12 (B) by striking ‘‘(as in effect’’ in subpara13 graph (B) and all that follows in such subpara14 graph and inserting ‘‘(as in effect on the date of 

15 the enactment of the Surface Transportation Ex16 tension Act of 2010), and’’, and 

17 (C) by striking ‘‘(as in effect’’ in subpara18 graph (C) and all that follows in such subpara19 graph and inserting ‘‘(as in effect on the date of 

20 the enactment of the Surface Transportation Ex21 tension Act of 2010).’’. 

22 (2) EXCEPTION TO LIMITATION ON TRANS23 FERS.—Paragraph (2) of section 9504(d) is amended 

24 by striking ‘‘October 1, 2009’’ and inserting ‘‘Janu25 ary 1, 2011’’. 
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1 (c) EFFECTIVE DATE.—The amendments made by this 

2 section shall take effect on September 30, 2009. 

3 SEC. 446. LEVEL OF OBLIGATION LIMITATIONS. 

4 (a) HIGHWAY CATEGORY.—Section 8003(a) of the 

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

6 amended— 

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

8 end; 

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

10 the end and inserting ‘‘; and’’; and 

11 (3) by adding at the end the following: 

12 ‘‘(6) for the period beginning on October 1, 2009, 

13 and ending on September 30, 2010, $42,469,970,178. 

14 ‘‘(7) for the period beginning on October 1, 2010, 

15 and ending on December 31, 2010, $10,617,492,545.’’. 

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

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

18 amended— 

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

20 end; 

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

22 the end and inserting ‘‘; and’’; and 

23 (3) by adding at the end the following: 

24 ‘‘(6) for the period beginning on October 1, 2009, 

25 and ending on December 31, 2010, $10,338,065,000. 
60 

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1 ‘‘(7) for the period beginning on October 1, 2010, 

2 and ending on December 31, 2010, $2,584,516,250.’’. 

3 (c) TREATMENT OF FUNDS.—No adjustment pursuant 

4 to section 110 of title 23, United States Code, shall be made 

5 for fiscal year 2010 or fiscal year 2011. 

6 TITLE V—OFFSET PROVISIONS 

7 Subtitle A—Foreign Account Tax 

8 Compliance 

9 PART I—INCREASED DISCLOSURE OF 

10 BENEFICIAL OWNERS 

11 SEC. 501. REPORTING ON CERTAIN FOREIGN ACCOUNTS. 

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

13 is amended by inserting after chapter 3 the following new 

14 chapter: 

15 ‘‘CHAPTER 4—TAXES TO ENFORCE RE16 PORTING ON CERTAIN FOREIGN AC17 COUNTS 

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

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

‘‘Sec. 1473. Definitions. 

‘‘Sec. 1474. Special rules. 

18 ‘‘SEC. 1471. WITHHOLDABLE PAYMENTS TO FOREIGN FINAN19 CIAL INSTITUTIONS. 

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

21 payment to a foreign financial institution which does not 

22 meet the requirements of subsection (b), the withholding 

23 agent with respect to such payment shall deduct and with-
61 

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1 hold from such payment a tax equal to 30 percent of the 

2 amount of such payment. 

3 ‘‘(b) REPORTING REQUIREMENTS, ETC.— 

4 ‘‘(1) IN GENERAL.—The requirements of this sub5 section are met with respect to any foreign financial 

6 institution if an agreement is in effect between such 

7 institution and the Secretary under which such insti8 tution agrees— 

9 ‘‘(A) to obtain such information regarding 

10 each holder of each account maintained by such 

11 institution as is necessary to determine which (if 

12 any) of such accounts are United States ac13 counts, 

14 ‘‘(B) to comply with such verification and 

15 due diligence procedures as the Secretary may 

16 require with respect to the identification of 

17 United States accounts, 

18 ‘‘(C) in the case of any United States ac19 count maintained by such institution, to report 

20 on an annual basis the information described in 

21 subsection (c) with respect to such account, 

22 ‘‘(D) to deduct and withhold a tax equal to 

23 30 percent of— 

24 ‘‘(i) any passthru payment which is 

25 made by such institution to a recalcitrant 
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1 account holder or another foreign financial 

2 institution which does not meet the require3 ments of this subsection, and 

4 ‘‘(ii) in the case of any passthru pay5 ment which is made by such institution to 

6 a foreign financial institution which has in 

7 effect an election under paragraph (3) with 

8 respect to such payment, so much of such 

9 payment as is allocable to accounts held by 

10 recalcitrant account holders or foreign fi11 nancial institutions which do not meet the 

12 requirements of this subsection, 

13 ‘‘(E) to comply with requests by the Sec14 retary for additional information with respect to 

15 any United States account maintained by such 

16 institution, and 

17 ‘‘(F) in any case in which any foreign law 

18 would (but for a waiver described in clause (i)) 

19 prevent the reporting of any information referred 

20 to in this subsection or subsection (c) with re21 spect to any United States account maintained 

22 by such institution— 

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

24 effective waiver of such law from each hold25 er of such account, and 
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1 ‘‘(ii) if a waiver described in clause (i) 

2 is not obtained from each such holder with3 in a reasonable period of time, to close such 

4 account. 

5 Any agreement entered into under this subsection 

6 may be terminated by the Secretary upon a deter7 mination by the Secretary that the foreign financial 

8 institution is out of compliance with such agreement. 

9 ‘‘(2) FINANCIAL INSTITUTIONS DEEMED TO MEET

10 REQUIREMENTS IN CERTAIN CASES.—A foreign finan11 cial institution may be treated by the Secretary as 

12 meeting the requirements of this subsection if— 

13 ‘‘(A) such institution— 

14 ‘‘(i) complies with such procedures as 

15 the Secretary may prescribe to ensure that 

16 such institution does not maintain United 

17 States accounts, and 

18 ‘‘(ii) meets such other requirements as 

19 the Secretary may prescribe with respect to 

20 accounts of other foreign financial institu21 tions maintained by such institution, or 

22 ‘‘(B) such institution is a member of a class 

23 of institutions with respect to which the Sec24 retary has determined that the application of 
64 

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1 this section is not necessary to carry out the pur2 poses of this section. 

3 ‘‘(3) ELECTION TO BE WITHHELD UPON RATHER

4 THAN WITHHOLD ON PAYMENTS TO RECALCITRANT

5 ACCOUNT HOLDERS AND NONPARTICIPATING FOREIGN

6 FINANCIAL INSTITUTIONS.—In the case of a foreign fi7 nancial institution which meets the requirements of 

8 this subsection and such other requirements as the 

9 Secretary may provide and which elects the applica10 tion of this paragraph— 

11 ‘‘(A) the requirements of paragraph (1)(D) 

12 shall not apply, 

13 ‘‘(B) the withholding tax imposed under 

14 subsection (a) shall apply with respect to any 

15 withholdable payment to such institution to the 

16 extent such payment is allocable to accounts held 

17 by recalcitrant account holders or foreign finan18 cial institutions which do not meet the require19 ments of this subsection, and 

20 ‘‘(C) the agreement described in paragraph 

21 (1) shall— 

22 ‘‘(i) require such institution to notify 

23 the withholding agent with respect to each 

24 such payment of the institution’s election 

25 under this paragraph and such other infor-
65 

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1 mation as may be necessary for the with2 holding agent to determine the appropriate 

3 amount to deduct and withhold from such 

4 payment, and 

5 ‘‘(ii) include a waiver of any right 

6 under any treaty of the United States with 

7 respect to any amount deducted and with8 held pursuant to an election under this 

9 paragraph. 

10 To the extent provided by the Secretary, the election 

11 under this paragraph may be made with respect to 

12 certain classes or types of accounts of the foreign fi13 nancial institution. 

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

15 UNITED STATES ACCOUNTS.— 

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

17 subsection (b) shall require the foreign financial insti18 tution to report the following with respect to each 

19 United States account maintained by such institu20 tion: 

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

22 account holder which is a specified United States 

23 person and, in the case of any account holder 

24 which is a United States owned foreign entity, 
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1 the name, address, and TIN of each substantial 

2 United States owner of such entity. 

3 ‘‘(B) The account number. 

4 ‘‘(C) The account balance or value (deter5 mined at such time and in such manner as the 

6 Secretary may provide). 

7 ‘‘(D) Except to the extent provided by the 

8 Secretary, the gross receipts and gross with9 drawals or payments from the account (deter10 mined for such period and in such manner as 

11 the Secretary may provide). 

12 ‘‘(2) ELECTION TO BE SUBJECT TO SAME RE13 PORTING AS UNITED STATES FINANCIAL INSTITU14 TIONS.—In the case of a foreign financial institution 

15 which elects the application of this paragraph— 

16 ‘‘(A) subparagraphs (C) and (D) of para17 graph (1) shall not apply, and 

18 ‘‘(B) the agreement described in subsection 

19 (b) shall require such foreign financial institu20 tion to report such information with respect to 

21 each United States account maintained by such 

22 institution as such institution would be required 

23 to report under sections 6041, 6042, 6045, and 

24 6049 if— 
67 

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1 ‘‘(i) such institution were a United 

2 States person, and 

3 ‘‘(ii) each holder of such account which 

4 is a specified United States person or 

5 United States owned foreign entity were a 

6 natural person and citizen of the United 

7 States. 

8 An election under this paragraph shall be made 

9 at such time, in such manner, and subject to 

10 such conditions as the Secretary may provide. 

11 ‘‘(3) SEPARATE REQUIREMENTS FOR QUALIFIED

12 INTERMEDIARIES.—In the case of a foreign financial 

13 institution which is treated as a qualified inter14 mediary by the Secretary for purposes of section 1441 

15 and the regulations issued thereunder, the require16 ments of this section shall be in addition to any re17 porting or other requirements imposed by the Sec18 retary for purposes of such treatment. 

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

20 ‘‘(1) UNITED STATES ACCOUNT.— 

21 ‘‘(A) IN GENERAL.—The term ‘United 

22 States account’ means any financial account 

23 which is held by one or more specified United 

24 States persons or United States owned foreign 

25 entities. 
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1 ‘‘(B) EXCEPTION FOR CERTAIN ACCOUNTS

2 HELD BY INDIVIDUALS.—Unless the foreign fi3 nancial institution elects to not have this sub4 paragraph apply, such term shall not include 

5 any depository account maintained by such fi6 nancial institution if— 

7 ‘‘(i) each holder of such account is a 

8 natural person, and 

9 ‘‘(ii) with respect to each holder of such 

10 account, the aggregate value of all deposi11 tory accounts held (in whole or in part) by 

12 such holder and maintained by the same fi13 nancial institution which maintains such 

14 account does not exceed $50,000. 

15 To the extent provided by the Secretary, finan16 cial institutions which are members of the same 

17 expanded affiliated group shall be treated for 

18 purposes of clause (ii) as a single financial insti19 tution. 

20 ‘‘(C) ELIMINATION OF DUPLICATIVE RE21 PORTING REQUIREMENTS.—Such term shall not 

22 include any financial account in a foreign fi23 nancial institution if— 
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1 ‘‘(i) such account is held by another fi2 nancial institution which meets the require3 ments of subsection (b), or 

4 ‘‘(ii) the holder of such account is oth5 erwise subject to information reporting re6 quirements which the Secretary determines 

7 would make the reporting required by this 

8 section with respect to United States ac9 counts duplicative. 

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

11 provided by the Secretary, the term ‘financial ac12 count’ means, with respect to any financial institu13 tion— 

14 ‘‘(A) any depository account maintained by 

15 such financial institution, 

16 ‘‘(B) any custodial account maintained by 

17 such financial institution, and 

18 ‘‘(C) any equity or debt interest in such fi19 nancial institution (other than interests which 

20 are regularly traded on an established securities 

21 market). 

22 Any equity or debt interest which constitutes a finan23 cial account under subparagraph (C) with respect to 

24 any financial institution shall be treated for purposes 
70 

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1 of this section as maintained by such financial insti2 tution. 

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

4 The term ‘United States owned foreign entity’ means 

5 any foreign entity which has one or more substantial 

6 United States owners. 

7 ‘‘(4) FOREIGN FINANCIAL INSTITUTION.—The 

8 term ‘foreign financial institution’ means any finan9 cial institution which is a foreign entity. Except as 

10 otherwise provided by the Secretary, such term shall 

11 not include a financial institution which is organized 

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

13 ‘‘(5) FINANCIAL INSTITUTION.—Except as other14 wise provided by the Secretary, the term ‘financial 

15 institution’ means any entity that— 

16 ‘‘(A) accepts deposits in the ordinary course 

17 of a banking or similar business, 

18 ‘‘(B) as a substantial portion of its busi19 ness, holds financial assets for the account of oth20 ers, or 

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

22 being engaged) primarily in the business of in23 vesting, reinvesting, or trading in securities (as 

24 defined in section 475(c)(2) without regard to the 

25 last sentence thereof), partnership interests, com-
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1 modities (as defined in section 475(e)(2)), or any 

2 interest (including a futures or forward contract 

3 or option) in such securities, partnership inter4 ests, or commodities. 

5 ‘‘(6) RECALCITRANT ACCOUNT HOLDER.—The 

6 term ‘recalcitrant account holder’ means any account 

7 holder which— 

8 ‘‘(A) fails to comply with reasonable re9 quests for the information referred to in sub10 section (b)(1)(A) or (c)(1)(A), or 

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

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

13 ‘‘(7) PASSTHRU PAYMENT.—The term ‘passthru 

14 payment’ means any withholdable payment or other 

15 payment to the extent attributable to a withholdable 

16 payment. 

17 ‘‘(e) AFFILIATED GROUPS.— 

18 ‘‘(1) IN GENERAL.—The requirements of sub19 sections (b) and (c)(1) shall apply— 

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

21 maintained by the foreign financial institution, 

22 and 

23 ‘‘(B) except as otherwise provided by the 

24 Secretary, with respect to United States accounts 

25 maintained by each other foreign financial insti-
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1 tution (other than any foreign financial institu2 tion which meets the requirements of subsection 

3 (b)) which is a member of the same expanded af4 filiated group as such foreign financial institu5 tion. 

6 ‘‘(2) EXPANDED AFFILIATED GROUP.—For pur7 poses of this section, the term ‘expanded affiliated 

8 group’ means an affiliated group as defined in section 

9 1504(a), determined— 

10 ‘‘(A) by substituting ‘more than 50 percent’ 

11 for ‘at least 80 percent’ each place it appears, 

12 and 

13 ‘‘(B) without regard to paragraphs (2) and 

14 (3) of section 1504(b). 

15 A partnership or any other entity (other than a cor16 poration) shall be treated as a member of an ex17 panded affiliated group if such entity is controlled 

18 (within the meaning of section 954(d)(3)) by members 

19 of such group (including any entity treated as a 

20 member of such group by reason of this sentence). 

21 ‘‘(f) EXCEPTION FOR CERTAIN PAYMENTS.—Sub22 section (a) shall not apply to any payment to the extent 

23 that the beneficial owner of such payment is— 

24 ‘‘(1) any foreign government, any political sub25 division of a foreign government, or any wholly 
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† HR 2847 EAS2 

1 owned agency or instrumentality of any one or more 

2 of the foregoing, 

3 ‘‘(2) any international organization or any 

4 wholly owned agency or instrumentality thereof, 

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

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

7 Secretary for purposes of this subsection as posing a 

8 low risk of tax evasion. 

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

10 ENTITIES. 

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

12 payment to a non-financial foreign entity, if— 

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

14 entity or any other non-financial foreign entity, and 

15 ‘‘(2) the requirements of subsection (b) are not 

16 met with respect to such beneficial owner, 

17 then the withholding agent with respect to such payment 

18 shall deduct and withhold from such payment a tax equal 

19 to 30 percent of the amount of such payment. 

20 ‘‘(b) REQUIREMENTS FOR WAIVER OF WITH21 HOLDING.—The requirements of this subsection are met 

22 with respect to the beneficial owner of a payment if— 

23 ‘‘(1) such beneficial owner or the payee provides 

24 the withholding agent with either— 
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† HR 2847 EAS2 

1 ‘‘(A) a certification that such beneficial 

2 owner does not have any substantial United 

3 States owners, or 

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

5 substantial United States owner of such bene6 ficial owner, 

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

8 have reason to know, that any information provided 

9 under paragraph (1) is incorrect, and 

10 ‘‘(3) the withholding agent reports the informa11 tion provided under paragraph (1)(B) to the Sec12 retary in such manner as the Secretary may provide. 

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

14 to— 

15 ‘‘(1) except as otherwise provided by the Sec16 retary, any payment beneficially owned by— 

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

18 regularly traded on an established securities 

19 market, 

20 ‘‘(B) any corporation which is a member of 

21 the same expanded affiliated group (as defined 

22 in section 1471(e)(2) without regard to the last 

23 sentence thereof) as a corporation described in 

24 subparagraph (A), 
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† HR 2847 EAS2 

1 ‘‘(C) any entity which is organized under 

2 the laws of a possession of the United States and 

3 which is wholly owned by one or more bona fide 

4 residents (as defined in section 937(a)) of such 

5 possession, 

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

7 subdivision of a foreign government, or any 

8 wholly owned agency or instrumentality of any 

9 one or more of the foregoing, 

10 ‘‘(E) any international organization or any 

11 wholly owned agency or instrumentality thereof, 

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

13 ‘‘(G) any other class of persons identified by 

14 the Secretary for purposes of this subsection, and 

15 ‘‘(2) any class of payments identified by the Sec16 retary for purposes of this subsection as posing a low 

17 risk of tax evasion. 

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

19 of this section, the term ‘non-financial foreign entity’ means 

20 any foreign entity which is not a financial institution (as 

21 defined in section 1471(d)(5)). 

22 ‘‘SEC. 1473. DEFINITIONS. 

23 ‘‘For purposes of this chapter— 

24 ‘‘(1) WITHHOLDABLE PAYMENT.—Except as oth25 erwise provided by the Secretary— 
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† HR 2847 EAS2 

1 ‘‘(A) IN GENERAL.—The term ‘withholdable 

2 payment’ means— 

3 ‘‘(i) any payment of interest (includ4 ing any original issue discount), dividends, 

5 rents, salaries, wages, premiums, annuities, 

6 compensations, remunerations, emoluments, 

7 and other fixed or determinable annual or 

8 periodical gains, profits, and income, if 

9 such payment is from sources within the 

10 United States, and 

11 ‘‘(ii) any gross proceeds from the sale 

12 or other disposition of any property of a 

13 type which can produce interest or divi14 dends from sources within the United 

15 States. 

16 ‘‘(B) EXCEPTION FOR INCOME CONNECTED

17 WITH UNITED STATES BUSINESS.—Such term 

18 shall not include any item of income which is 

19 taken into account under section 871(b)(1) or 

20 882(a)(1) for the taxable year. 

21 ‘‘(C) SPECIAL RULE FOR SOURCING INTER22 EST PAID BY FOREIGN BRANCHES OF DOMESTIC

23 FINANCIAL INSTITUTIONS.—Subparagraph (B) of 

24 section 861(a)(1) shall not apply. 

25 ‘‘(2) SUBSTANTIAL UNITED STATES OWNER.— 
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† HR 2847 EAS2 

1 ‘‘(A) IN GENERAL.—The term ‘substantial 

2 United States owner’ means— 

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

4 any specified United States person which 

5 owns, directly or indirectly, more than 10 

6 percent of the stock of such corporation (by 

7 vote or value), 

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

9 any specified United States person which 

10 owns, directly or indirectly, more than 10 

11 percent of the profits interests or capital in12 terests in such partnership, and 

13 ‘‘(iii) in the case of a trust— 

14 ‘‘(I) any specified United States 

15 person treated as an owner of any por16 tion of such trust under subpart E of 

17 part I of subchapter J of chapter 1, 

18 and 

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

20 Secretary in regulations or other guid21 ance, any specified United States per22 son which holds, directly or indirectly, 

23 more than 10 percent of the beneficial 

24 interests of such trust. 
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1 ‘‘(B) SPECIAL RULE FOR INVESTMENT VEHI2 CLES.—In the case of any financial institution 

3 described in section 1471(d)(5)(C), clauses (i), 

4 (ii), and (iii) of subparagraph (A) shall be ap5 plied by substituting ‘0 percent’ for ‘10 percent’. 

6 ‘‘(3) SPECIFIED UNITED STATES PERSON.—Ex7 cept as otherwise provided by the Secretary, the term 

8 ‘specified United States person’ means any United 

9 States person other than— 

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

11 regularly traded on an established securities 

12 market, 

13 ‘‘(B) any corporation which is a member of 

14 the same expanded affiliated group (as defined 

15 in section 1471(e)(2) without regard to the last 

16 sentence thereof) as a corporation the stock of 

17 which is regularly traded on an established secu18 rities market, 

19 ‘‘(C) any organization exempt from tax20 ation under section 501(a) or an individual re21 tirement plan, 

22 ‘‘(D) the United States or any wholly 

23 owned agency or instrumentality thereof, 

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

25 any possession of the United States, any polit-
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† HR 2847 EAS2 

1 ical subdivision of any of the foregoing, or any 

2 wholly owned agency or instrumentality of any 

3 one or more of the foregoing, 

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

5 ‘‘(G) any real estate investment trust (as 

6 defined in section 856), 

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

8 defined in section 851), 

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

10 section 584(a)), and 

11 ‘‘(J) any trust which— 

12 ‘‘(i) is exempt from tax under section 

13 664(c), or 

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

15 ‘‘(4) WITHHOLDING AGENT.—The term ‘with16 holding agent’ means all persons, in whatever capac17 ity acting, having the control, receipt, custody, dis18 posal, or payment of any withholdable payment. 

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

20 means any entity which is not a United States per21 son. 

22 ‘‘SEC. 1474. SPECIAL RULES. 

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

24 required to deduct and withhold any tax under this chapter 

25 is hereby made liable for such tax and is hereby indemnified 
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† HR 2847 EAS2 

1 against the claims and demands of any person for the 

2 amount of any payments made in accordance with the pro3 visions of this chapter. 

4 ‘‘(b) CREDITS AND REFUNDS.— 

5 ‘‘(1) IN GENERAL.—Except as provided in para6 graph (2), the determination of whether any tax de7 ducted and withheld under this chapter results in an 

8 overpayment by the beneficial owner of the payment 

9 to which such tax is attributable shall be made as if 

10 such tax had been deducted and withheld under sub11 chapter A of chapter 3. 

12 ‘‘(2) SPECIAL RULE WHERE FOREIGN FINANCIAL

13 INSTITUTION IS BENEFICIAL OWNER OF PAYMENT.— 

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

15 properly deducted and withheld under section 

16 1471 from a specified financial institution pay17 ment— 

18 ‘‘(i) if the foreign financial institution 

19 referred to in subparagraph (B) with re20 spect to such payment is entitled to a re21 duced rate of tax with respect to such pay22 ment by reason of any treaty obligation of 

23 the United States— 

24 ‘‘(I) the amount of any credit or 

25 refund with respect to such tax shall 
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1 not exceed the amount of credit or re2 fund attributable to such reduction in 

3 rate, and 

4 ‘‘(II) no interest shall be allowed 

5 or paid with respect to such credit or 

6 refund, and 

7 ‘‘(ii) if such foreign financial institu8 tion is not so entitled, no credit or refund 

9 shall be allowed or paid with respect to such 

10 tax. 

11 ‘‘(B) SPECIFIED FINANCIAL INSTITUTION

12 PAYMENT.—The term ‘specified financial institu13 tion payment’ means any payment if the bene14 ficial owner of such payment is a foreign finan15 cial institution. 

16 ‘‘(3) REQUIREMENT TO IDENTIFY SUBSTANTIAL

17 UNITED STATES OWNERS.—No credit or refund shall 

18 be allowed or paid with respect to any tax properly 

19 deducted and withheld under this chapter unless the 

20 beneficial owner of the payment provides the Sec21 retary such information as the Secretary may require 

22 to determine whether such beneficial owner is a 

23 United States owned foreign entity (as defined in sec24 tion 1471(d)(3)) and the identity of any substantial 

25 United States owners of such entity. 
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1 ‘‘(c) CONFIDENTIALITY OF INFORMATION.— 

2 ‘‘(1) IN GENERAL.—For purposes of this chapter, 

3 rules similar to the rules of section 3406(f) shall 

4 apply. 

5 ‘‘(2) DISCLOSURE OF LIST OF PARTICIPATING

6 FOREIGN FINANCIAL INSTITUTIONS PERMITTED.—The 

7 identity of a foreign financial institution which meets 

8 the requirements of section 1471(b) shall not be treat9 ed as return information for purposes of section 6103. 

10 ‘‘(d) COORDINATION WITH OTHER WITHHOLDING

11 PROVISIONS.—The Secretary shall provide for the coordina12 tion of this chapter with other withholding provisions under 

13 this title, including providing for the proper crediting of 

14 amounts deducted and withheld under this chapter against 

15 amounts required to be deducted and withheld under such 

16 other provisions. 

17 ‘‘(e) TREATMENT OF WITHHOLDING UNDER AGREE18 MENTS.—Any tax deducted and withheld pursuant to an 

19 agreement described in section 1471(b) shall be treated for 

20 purposes of this title as a tax deducted and withheld by 

21 a withholding agent under section 1471(a). 

22 ‘‘(f) REGULATIONS.—The Secretary shall prescribe 

23 such regulations or other guidance as may be necessary or 

24 appropriate to carry out the purposes of, and prevent the 

25 avoidance of, this chapter.’’. 
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1 (b) SPECIAL RULE FOR INTEREST ON OVERPAY2 MENTS.—Subsection (e) of section 6611 is amended by add3 ing at the end the following new paragraph: 

4 ‘‘(4) CERTAIN WITHHOLDING TAXES.—In the 

5 case of any overpayment resulting from tax deducted 

6 and withheld under chapter 3 or 4, paragraphs (1), 

7 (2), and (3) shall be applied by substituting ‘180 

8 days’ for ‘45 days’ each place it appears.’’. 

9 (c) CONFORMING AMENDMENTS.— 

10 (1) Section 6414 is amended by inserting ‘‘or 4’’ 

11 after ‘‘chapter 3’’. 

12 (2) Paragraph (1) of section 6501(b) is amended 

13 by inserting ‘‘4,’’ after ‘‘chapter 3,’’. 

14 (3) Paragraph (2) of section 6501(b) is amend15 ed— 

16 (A) by inserting ‘‘4,’’ after ‘‘chapter 3,’’ in 

17 the text thereof, and 

18 (B) by striking ‘‘TAXES AND TAX IMPOSED

19 BY CHAPTER 3’’ in the heading thereof and in20 serting ‘‘AND WITHHOLDING TAXES’’. 

21 (4) Paragraph (3) of section 6513(b) is amend22 ed— 

23 (A) by inserting ‘‘or 4’’ after ‘‘chapter 3’’, 

24 and 
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1 (B) by inserting ‘‘or 1474(b)’’ after ‘‘section 

2 1462’’. 

3 (5) Subsection (c) of section 6513 is amended by 

4 inserting ‘‘4,’’ after ‘‘chapter 3,’’. 

5 (6) Paragraph (1) of section 6724(d) is amended 

6 by inserting ‘‘under chapter 4 or’’ after ‘‘filed with 

7 the Secretary’’ in the last sentence thereof. 

8 (7) Paragraph (2) of section 6724(d) is amended 

9 by inserting ‘‘or 4’’ after ‘‘chapter 3’’. 

10 (8) The table of chapters of the Internal Revenue 

11 Code of 1986 is amended by adding at the end the fol12 lowing new item: 

‘‘CHAPTER 4. TAXES TO ENFORCE REPORTING ON CERTAIN FOREIGN

ACCOUNTS.’’. 

13 (d) EFFECTIVE DATE.— 

14 (1) IN GENERAL.—Except as otherwise provided 

15 in this subsection, the amendments made by this sec16 tion shall apply to payments made after December 

17 31, 2012. 

18 (2) GRANDFATHERED TREATMENT OF OUT19 STANDING OBLIGATIONS.—The amendments made by 

20 this section shall not require any amount to be de21 ducted or withheld from any payment under any obli22 gation outstanding on the date which is 2 years after 

23 the date of the enactment of this Act or from the gross 

24 proceeds from any disposition of such an obligation. 
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† HR 2847 EAS2 

1 (3) INTEREST ON OVERPAYMENTS.—The amend2 ment made by subsection (b) shall apply— 

3 (A) in the case of such amendment’s appli4 cation to paragraph (1) of section 6611(e) of the 

5 Internal Revenue Code of 1986, to returns the 

6 due date for which (determined without regard to 

7 extensions) is after the date of the enactment of 

8 this Act, 

9 (B) in the case of such amendment’s appli10 cation to paragraph (2) of such section, to claims 

11 for credit or refund of any overpayment filed 

12 after the date of the enactment of this Act (re13 gardless of the taxable period to which such re14 fund relates), and 

15 (C) in the case of such amendment’s appli16 cation to paragraph (3) of such section, to re17 funds paid after the date of the enactment of this 

18 Act (regardless of the taxable period to which 

19 such refund relates). 

20 SEC. 502. REPEAL OF CERTAIN FOREIGN EXCEPTIONS TO 

21 REGISTERED BOND REQUIREMENTS. 

22 (a) REPEAL OF EXCEPTION TO DENIAL OF DEDUCTION

23 FOR INTEREST ON NON-REGISTERED BONDS.— 

24 (1) IN GENERAL.—Paragraph (2) of section 

25 163(f) is amended by striking subparagraph (B) and 
86 

† HR 2847 EAS2 

1 by redesignating subparagraph (C) as subparagraph 

2 (B). 

3 (2) CONFORMING AMENDMENTS.— 

4 (A) Paragraph (2) of section 149(a) is 

5 amended by inserting ‘‘or’’ at the end of sub6 paragraph (A), by striking ‘‘, or’’ at the end of 

7 subparagraph (B) and inserting a period, and 

8 by striking subparagraph (C). 

9 (B) Subparagraph (A) of section 163(f)(2) 

10 is amended by inserting ‘‘or’’ at the end of clause 

11 (ii), by striking ‘‘, or’’ at the end of clause (iii) 

12 and inserting a period, and by striking clause 

13 (iv). 

14 (C) Subparagraph (B) of section 163(f)(2), 

15 as redesignated by paragraph (1), is amended— 

16 (i) by striking ‘‘, and subparagraph 

17 (B),’’ in the matter preceding clause (i), 

18 and 

19 (ii) by amending clause (i) to read as 

20 follows: 

21 ‘‘(i) such obligation is of a type which 

22 the Secretary has determined by regulations 

23 to be used frequently in avoiding Federal 

24 taxes, and’’. 
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† HR 2847 EAS2 

1 (D) Sections 165(j)(2)(A) and 1287(b)(1) 

2 are each amended by striking ‘‘except that clause 

3 (iv) of subparagraph (A), and subparagraph (B), 

4 of such section shall not apply’’. 

5 (b) REPEAL OF TREATMENT AS PORTFOLIO DEBT.— 

6 (1) IN GENERAL.—Paragraph (2) of section 

7 871(h) is amended to read as follows: 

8 ‘‘(2) PORTFOLIO INTEREST.—For purposes of 

9 this subsection, the term ‘portfolio interest’ means any 

10 interest (including original issue discount) which— 

11 ‘‘(A) would be subject to tax under sub12 section (a) but for this subsection, and 

13 ‘‘(B) is paid on an obligation— 

14 ‘‘(i) which is in registered form, and 

15 ‘‘(ii) with respect to which— 

16 ‘‘(I) the United States person who 

17 would otherwise be required to deduct 

18 and withhold tax from such interest 

19 under section 1441(a) receives a state20 ment (which meets the requirements of 

21 paragraph (5)) that the beneficial 

22 owner of the obligation is not a United 

23 States person, or 

24 ‘‘(II) the Secretary has deter25 mined that such a statement is not re-
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† HR 2847 EAS2 

1 quired in order to carry out the pur2 poses of this subsection.’’. 

3 (2) CONFORMING AMENDMENTS.— 

4 (A) Section 871(h)(3)(A) is amended by 

5 striking ‘‘subparagraph (A) or (B) of’’. 

6 (B) Paragraph (2) of section 881(c) is 

7 amended to read as follows: 

8 ‘‘(2) PORTFOLIO INTEREST.—For purposes of 

9 this subsection, the term ‘portfolio interest’ means any 

10 interest (including original issue discount) which— 

11 ‘‘(A) would be subject to tax under sub12 section (a) but for this subsection, and 

13 ‘‘(B) is paid on an obligation— 

14 ‘‘(i) which is in registered form, and 

15 ‘‘(ii) with respect to which— 

16 ‘‘(I) the person who would other17 wise be required to deduct and with18 hold tax from such interest under sec19 tion 1442(a) receives a statement 

20 which meets the requirements of section 

21 871(h)(5) that the beneficial owner of 

22 the obligation is not a United States 

23 person, or 

24 ‘‘(II) the Secretary has deter25 mined that such a statement is not re-
89 

† HR 2847 EAS2 

1 quired in order to carry out the pur2 poses of this subsection.’’. 

3 (c) DEMATERIALIZED BOOK ENTRY SYSTEMS TREAT4 ED AS REGISTERED FORM.—Paragraph (3) of section 

5 163(f) is amended by inserting ‘‘, except that a dematerial6 ized book entry system or other book entry system specified 

7 by the Secretary shall be treated as a book entry system 

8 described in such section’’ before the period at the end. 

9 (d) REPEAL OF EXCEPTION TO REQUIREMENT THAT

10 TREASURY OBLIGATIONS BE IN REGISTERED FORM.— 

11 (1) IN GENERAL.—Subsection (g) of section 3121 

12 of title 31, United States Code, is amended by strik13 ing paragraph (2) and by redesignating paragraphs 

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

15 (2) CONFORMING AMENDMENTS.—Paragraph (1) 

16 of section 3121(g) of such title is amended— 

17 (A) by adding ‘‘or’’ at the end of subpara18 graph (A), 

19 (B) by striking ‘‘; or’’ at the end of sub20 paragraph (B) and inserting a period, and 

21 (C) by striking subparagraph (C). 

22 (e) PRESERVATION OF EXCEPTION FOR EXCISE TAX

23 PURPOSES.—Paragraph (1) of section 4701(b) is amended 

24 to read as follows: 

25 ‘‘(1) REGISTRATION-REQUIRED OBLIGATION.— 
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† HR 2847 EAS2 

1 ‘‘(A) IN GENERAL.—The term ‘registration2 required obligation’ has the same meaning as 

3 when used in section 163(f), except that such 

4 term shall not include any obligation which— 

5 ‘‘(i) is required to be registered under 

6 section 149(a), or 

7 ‘‘(ii) is described in subparagraph (B). 

8 ‘‘(B) CERTAIN OBLIGATIONS NOT IN9 CLUDED.—An obligation is described in this sub10 paragraph if— 

11 ‘‘(i) there are arrangements reasonably 

12 designed to ensure that such obligation will 

13 be sold (or resold in connection with the 

14 original issue) only to a person who is not 

15 a United States person, 

16 ‘‘(ii) interest on such obligation is pay17 able only outside the United States and its 

18 possessions, and 

19 ‘‘(iii) on the face of such obligation 

20 there is a statement that any United States 

21 person who holds such obligation will be 

22 subject to limitations under the United 

23 States income tax laws.’’. 
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† HR 2847 EAS2 

1 (f) EFFECTIVE DATE.—The amendments made by this 

2 section shall apply to obligations issued after the date which 

3 is 2 years after the date of the enactment of this Act. 

4 PART II—UNDER REPORTING WITH RESPECT TO 

5 FOREIGN ASSETS 

6 SEC. 511. DISCLOSURE OF INFORMATION WITH RESPECT TO 

7 FOREIGN FINANCIAL ASSETS. 

8 (a) IN GENERAL.—Subpart A of part III of subchapter 

9 A of chapter 61 is amended by inserting after section 6038C 

10 the following new section: 

11 ‘‘SEC. 6038D. INFORMATION WITH RESPECT TO FOREIGN FI12 NANCIAL ASSETS. 

13 ‘‘(a) IN GENERAL.—Any individual who, during any 

14 taxable year, holds any interest in a specified foreign finan15 cial asset shall attach to such person’s return of tax imposed 

16 by subtitle A for such taxable year the information described 

17 in subsection (c) with respect to each such asset if the aggre18 gate value of all such assets exceeds $50,000 (or such higher 

19 dollar amount as the Secretary may prescribe). 

20 ‘‘(b) SPECIFIED FOREIGN FINANCIAL ASSETS.—For 

21 purposes of this section, the term ‘specified foreign financial 

22 asset’ means— 

23 ‘‘(1) any financial account (as defined in section 

24 1471(d)(2)) maintained by a foreign financial insti25 tution (as defined in section 1471(d)(4)), and 
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† HR 2847 EAS2 

1 ‘‘(2) any of the following assets which are not 

2 held in an account maintained by a financial institu3 tion (as defined in section 1471(d)(5))— 

4 ‘‘(A) any stock or security issued by a per5 son other than a United States person, 

6 ‘‘(B) any financial instrument or contract 

7 held for investment that has an issuer or 

8 counterparty which is other than a United 

9 States person, and 

10 ‘‘(C) any interest in a foreign entity (as de11 fined in section 1473). 

12 ‘‘(c) REQUIRED INFORMATION.—The information de13 scribed in this subsection with respect to any asset is: 

14 ‘‘(1) In the case of any account, the name and 

15 address of the financial institution in which such ac16 count is maintained and the number of such account. 

17 ‘‘(2) In the case of any stock or security, the 

18 name and address of the issuer and such information 

19 as is necessary to identify the class or issue of which 

20 such stock or security is a part. 

21 ‘‘(3) In the case of any other instrument, con22 tract, or interest— 

23 ‘‘(A) such information as is necessary to 

24 identify such instrument, contract, or interest, 

25 and 
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1 ‘‘(B) the names and addresses of all issuers 

2 and counterparties with respect to such instru3 ment, contract, or interest. 

4 ‘‘(4) The maximum value of the asset during the 

5 taxable year. 

6 ‘‘(d) PENALTY FOR FAILURE TO DISCLOSE.— 

7 ‘‘(1) IN GENERAL.—If any individual fails to 

8 furnish the information described in subsection (c) 

9 with respect to any taxable year at the time and in 

10 the manner described in subsection (a), such person 

11 shall pay a penalty of $10,000. 

12 ‘‘(2) INCREASE IN PENALTY WHERE FAILURE

13 CONTINUES AFTER NOTIFICATION.—If any failure de14 scribed in paragraph (1) continues for more than 90 

15 days after the day on which the Secretary mails no16 tice of such failure to the individual, such individual 

17 shall pay a penalty (in addition to the penalties 

18 under paragraph (1)) of $10,000 for each 30-day pe19 riod (or fraction thereof) during which such failure 

20 continues after the expiration of such 90-day period. 

21 The penalty imposed under this paragraph with re22 spect to any failure shall not exceed $50,000. 

23 ‘‘(e) PRESUMPTION THAT VALUE OF SPECIFIED FOR24 EIGN FINANCIAL ASSETS EXCEEDS DOLLAR THRESH25 OLD.—If— 
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1 ‘‘(1) the Secretary determines that an individual 

2 has an interest in one or more specified foreign finan3 cial assets, and 

4 ‘‘(2) such individual does not provide sufficient 

5 information to demonstrate the aggregate value of 

6 such assets, 

7 then the aggregate value of such assets shall be treated as 

8 being in excess of $50,000 (or such higher dollar amount 

9 as the Secretary prescribes for purposes of subsection (a)) 

10 for purposes of assessing the penalties imposed under this 

11 section. 

12 ‘‘(f) APPLICATION TO CERTAIN ENTITIES.—To the ex13 tent provided by the Secretary in regulations or other guid14 ance, the provisions of this section shall apply to any do15 mestic entity which is formed or availed of for purposes 

16 of holding, directly or indirectly, specified foreign financial 

17 assets, in the same manner as if such entity were an indi18 vidual. 

19 ‘‘(g) REASONABLE CAUSE EXCEPTION.—No penalty 

20 shall be imposed by this section on any failure which is 

21 shown to be due to reasonable cause and not due to willful 

22 neglect. The fact that a foreign jurisdiction would impose 

23 a civil or criminal penalty on the taxpayer (or any other 

24 person) for disclosing the required information is not rea25 sonable cause. 
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1 ‘‘(h) REGULATIONS.—The Secretary shall prescribe 

2 such regulations or other guidance as may be necessary or 

3 appropriate to carry out the purposes of this section, in4 cluding regulations or other guidance which provide appro5 priate exceptions from the application of this section in the 

6 case of— 

7 ‘‘(1) classes of assets identified by the Secretary, 

8 including any assets with respect to which the Sec9 retary determines that disclosure under this section 

10 would be duplicative of other disclosures, 

11 ‘‘(2) nonresident aliens, and 

12 ‘‘(3) bona fide residents of any possession of the 

13 United States.’’. 

14 (b) CLERICAL AMENDMENT.—The table of sections for 

15 subpart A of part III of subchapter A of chapter 61 is 

16 amended by inserting after the item relating to section 

17 6038C the following new item: 

‘‘Sec. 6038D. Information with respect to foreign financial assets.’’. 

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

19 section shall apply to taxable years beginning after the date 

20 of the enactment of this Act. 

21 SEC. 512. PENALTIES FOR UNDERPAYMENTS ATTRIB22 UTABLE TO UNDISCLOSED FOREIGN FINAN23 CIAL ASSETS. 

24 (a) IN GENERAL.—Section 6662, as amended by this 

25 Act, is amended— 
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1 (1) in subsection (b), by inserting after para2 graph (6) the following new paragraph: 

3 ‘‘(7) Any undisclosed foreign financial asset un4 derstatement.’’, and 

5 (2) by adding at the end the following new sub6 section: 

7 ‘‘(j) UNDISCLOSED FOREIGN FINANCIAL ASSET UN8 DERSTATEMENT.— 

9 ‘‘(1) IN GENERAL.—For purposes of this section, 

10 the term ‘undisclosed foreign financial asset under11 statement’ means, for any taxable year, the portion of 

12 the understatement for such taxable year which is at13 tributable to any transaction involving an undis14 closed foreign financial asset. 

15 ‘‘(2) UNDISCLOSED FOREIGN FINANCIAL

16 ASSET.—For purposes of this subsection, the term ‘un17 disclosed foreign financial asset’ means, with respect 

18 to any taxable year, any asset with respect to which 

19 information was required to be provided under sec20 tion 6038, 6038B, 6038D, 6046A, or 6048 for such 

21 taxable year but was not provided by the taxpayer as 

22 required under the provisions of those sections. 

23 ‘‘(3) INCREASE IN PENALTY FOR UNDISCLOSED

24 FOREIGN FINANCIAL ASSET UNDERSTATEMENTS.—In 

25 the case of any portion of an underpayment which is 
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1 attributable to any undisclosed foreign financial asset 

2 understatement, subsection (a) shall be applied with 

3 respect to such portion by substituting ‘40 percent’ for 

4 ‘20 percent’.’’. 

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

6 section shall apply to taxable years beginning after the date 

7 of the enactment of this Act. 

8 SEC. 513. MODIFICATION OF STATUTE OF LIMITATIONS FOR 

9 SIGNIFICANT OMISSION OF INCOME IN CON10 NECTION WITH FOREIGN ASSETS. 

11 (a) EXTENSION OF STATUTE OF LIMITATIONS.— 

12 (1) IN GENERAL.—Paragraph (1) of section 

13 6501(e) is amended by redesignating subparagraphs 

14 (A) and (B) as subparagraphs (B) and (C), respec15 tively, and by inserting before subparagraph (B) (as 

16 so redesignated) the following new subparagraph: 

17 ‘‘(A) GENERAL RULE.—If the taxpayer 

18 omits from gross income an amount properly in19 cludible therein and— 

20 ‘‘(i) such amount is in excess of 25 

21 percent of the amount of gross income stated 

22 in the return, or 

23 ‘‘(ii) such amount— 

24 ‘‘(I) is attributable to one or more 

25 assets with respect to which informa-
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1 tion is required to be reported under 

2 section 6038D (or would be so required 

3 if such section were applied without re4 gard to the dollar threshold specified in 

5 subsection (a) thereof and without re6 gard to any exceptions provided pursu7 ant to subsection (h)(1) thereof), and 

8 ‘‘(II) is in excess of $5,000, 

9 the tax may be assessed, or a proceeding in court 

10 for collection of such tax may be begun without 

11 assessment, at any time within 6 years after the 

12 return was filed.’’. 

13 (2) CONFORMING AMENDMENTS.— 

14 (A) Subparagraph (B) of section 6501(e)(1), 

15 as redesignated by paragraph (1), is amended by 

16 striking all that precedes clause (i) and inserting 

17 the following: 

18 ‘‘(B) DETERMINATION OF GROSS INCOME.— 

19 For purposes of subparagraph (A)—’’. 

20 (B) Paragraph (2) of section 6229(c) is 

21 amended by striking ‘‘which is in excess of 25 

22 percent of the amount of gross income stated in 

23 its return’’ and inserting ‘‘and such amount is 

24 described in clause (i) or (ii) of section 

25 6501(e)(1)(A)’’. 
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1 (b) ADDITIONAL REPORTS SUBJECT TO EXTENDED

2 PERIOD.—Paragraph (8) of section 6501(c) is amended— 

3 (1) by inserting ‘‘pursuant to an election under 

4 section 1295(b) or’’ before ‘‘under section 6038’’, 

5 (2) by inserting ‘‘1298(f),’’ before ‘‘6038’’, and 

6 (3) by inserting ‘‘6038D,’’ after ‘‘6038B,’’. 

7 (c) CLARIFICATIONS RELATED TO FAILURE TO DIS8 CLOSE FOREIGN TRANSFERS.—Paragraph (8) of section 

9 6501(c) is amended by striking ‘‘event’’ and inserting ‘‘tax 

10 return, event,’’. 

11 (d) EFFECTIVE DATE.—The amendments made by this 

12 section shall apply to— 

13 (1) returns filed after the date of the enactment 

14 of this Act; and 

15 (2) returns filed on or before such date if the pe16 riod specified in section 6501 of the Internal Revenue 

17 Code of 1986 (determined without regard to such 

18 amendments) for assessment of such taxes has not ex19 pired as of such date. 

20 PART III—OTHER DISCLOSURE PROVISIONS 

21 SEC. 521. REPORTING OF ACTIVITIES WITH RESPECT TO 

22 PASSIVE FOREIGN INVESTMENT COMPANIES. 

23 (a) IN GENERAL.—Section 1298 is amended by redes24 ignating subsection (f) as subsection (g) and by inserting 

25 after subsection (e) the following new subsection: 
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1 ‘‘(f) REPORTING REQUIREMENT.—Except as otherwise 

2 provided by the Secretary, each United States person who 

3 is a shareholder of a passive foreign investment company 

4 shall file an annual report containing such information as 

5 the Secretary may require.’’. 

6 (b) CONFORMING AMENDMENT.—Subsection (e) of sec7 tion 1291 is amended by striking ‘‘, (d), and (f)’’ and in8 serting ‘‘and (d)’’. 

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

10 section take effect on the date of the enactment of this Act. 

11 SEC. 522. SECRETARY PERMITTED TO REQUIRE FINANCIAL 

12 INSTITUTIONS TO FILE CERTAIN RETURNS 

13 RELATED TO WITHHOLDING ON FOREIGN 

14 TRANSFERS ELECTRONICALLY. 

15 (a) IN GENERAL.—Subsection (e) of section 6011 is 

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

17 ‘‘(4) SPECIAL RULE FOR RETURNS FILED BY FI18 NANCIAL INSTITUTIONS WITH RESPECT TO WITH19 HOLDING ON FOREIGN TRANSFERS.—The numerical 

20 limitation under paragraph (2)(A) shall not apply to 

21 any return filed by a financial institution (as defined 

22 in section 1471(d)(5)) with respect to tax for which 

23 such institution is made liable under section 1461 or 

24 1474(a).’’. 
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1 (b) CONFORMING AMENDMENT.—Subsection (c) of sec2 tion 6724 is amended by inserting ‘‘or with respect to a 

3 return described in section 6011(e)(4)’’ before the end pe4 riod. 

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

6 section shall apply to returns the due date for which (deter7 mined without regard to extensions) is after the date of the 

8 enactment of this Act. 

9 PART IV—PROVISIONS RELATED TO FOREIGN 

10 TRUSTS 

11 SEC. 531. CLARIFICATIONS WITH RESPECT TO FOREIGN 

12 TRUSTS WHICH ARE TREATED AS HAVING A 

13 UNITED STATES BENEFICIARY. 

14 (a) IN GENERAL.—Paragraph (1) of section 679(c) is 

15 amended by adding at the end the following: 

16 ‘‘For purposes of subparagraph (A), an amount shall 

17 be treated as accumulated for the benefit of a United 

18 States person even if the United States person’s inter19 est in the trust is contingent on a future event.’’. 

20 (b) CLARIFICATION REGARDING DISCRETION TO IDEN21 TIFY BENEFICIARIES.—Subsection (c) of section 679 is 

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

23 ‘‘(4) SPECIAL RULE IN CASE OF DISCRETION TO

24 IDENTIFY BENEFICIARIES.—For purposes of para25 graph (1)(A), if any person has the discretion (by au-
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1 thority given in the trust agreement, by power of ap2 pointment, or otherwise) of making a distribution 

3 from the trust to, or for the benefit of, any person, 

4 such trust shall be treated as having a beneficiary 

5 who is a United States person unless— 

6 ‘‘(A) the terms of the trust specifically iden7 tify the class of persons to whom such distribu8 tions may be made, and 

9 ‘‘(B) none of those persons are United 

10 States persons during the taxable year.’’. 

11 (c) CLARIFICATION THAT CERTAIN AGREEMENTS AND

12 UNDERSTANDINGS ARE TERMS OF THE TRUST.—Sub13 section (c) of section 679, as amended by subsection (b), 

14 is amended by adding at the end the following new para15 graph: 

16 ‘‘(5) CERTAIN AGREEMENTS AND UNDER17 STANDINGS TREATED AS TERMS OF THE TRUST.—For 

18 purposes of paragraph (1)(A), if any United States 

19 person who directly or indirectly transfers property to 

20 the trust is directly or indirectly involved in any 

21 agreement or understanding (whether written, oral, or 

22 otherwise) that may result in the income or corpus of 

23 the trust being paid or accumulated to or for the ben24 efit of a United States person, such agreement or un25 derstanding shall be treated as a term of the trust.’’. 
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1 SEC. 532. PRESUMPTION THAT FOREIGN TRUST HAS 

2 UNITED STATES BENEFICIARY. 

3 (a) IN GENERAL.—Section 679 is amended by redesig4 nating subsection (d) as subsection (e) and inserting after 

5 subsection (c) the following new subsection: 

6 ‘‘(d) PRESUMPTION THAT FOREIGN TRUST HAS

7 UNITED STATES BENEFICIARY.—If a United States person 

8 directly or indirectly transfers property to a foreign trust 

9 (other than a trust described in section 6048(a)(3)(B)(ii)), 

10 the Secretary may treat such trust as having a United 

11 States beneficiary for purposes of applying this section to 

12 such transfer unless such person— 

13 ‘‘(1) submits such information to the Secretary 

14 as the Secretary may require with respect to such 

15 transfer, and 

16 ‘‘(2) demonstrates to the satisfaction of the Sec17 retary that such trust satisfies the requirements of 

18 subparagraphs (A) and (B) of subsection (c)(1).’’. 

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

20 section shall apply to transfers of property after the date 

21 of the enactment of this Act. 

22 SEC. 533. UNCOMPENSATED USE OF TRUST PROPERTY. 

23 (a) IN GENERAL.—Paragraph (1) of section 643(i) is 

24 amended— 
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1 (1) by striking ‘‘directly or indirectly to’’ and 

2 inserting ‘‘(or permits the use of any other trust prop3 erty) directly or indirectly to or by’’, and 

4 (2) by inserting ‘‘(or the fair market value of the 

5 use of such property)’’ after ‘‘the amount of such 

6 loan’’. 

7 (b) EXCEPTION FOR COMPENSATED USE.—Paragraph 

8 (2) of section 643(i) is amended by adding at the end the 

9 following new subparagraph: 

10 ‘‘(E) EXCEPTION FOR COMPENSATED USE

11 OF PROPERTY.—In the case of the use of any 

12 trust property other than a loan of cash or mar13 ketable securities, paragraph (1) shall not apply 

14 to the extent that the trust is paid the fair mar15 ket value of such use within a reasonable period 

16 of time of such use.’’. 

17 (c) APPLICATION TO GRANTOR TRUSTS.—Subsection 

18 (c) of section 679, as amended by this Act, is amended by 

19 adding at the end the following new paragraph: 

20 ‘‘(6) UNCOMPENSATED USE OF TRUST PROPERTY

21 TREATED AS A PAYMENT.—For purposes of this sub22 section, a loan of cash or marketable securities (or the 

23 use of any other trust property) directly or indirectly 

24 to or by any United States person (whether or not a 

25 beneficiary under the terms of the trust) shall be 
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1 treated as paid or accumulated for the benefit of a 

2 United States person. The preceding sentence shall 

3 not apply to the extent that the United States person 

4 repays the loan at a market rate of interest (or pays 

5 the fair market value of the use of such property) 

6 within a reasonable period of time.’’. 

7 (d) CONFORMING AMENDMENTS.—Paragraph (3) of 

8 section 643(i) is amended— 

9 (1) by inserting ‘‘(or use of property)’’ after ‘‘If 

10 any loan’’, 

11 (2) by inserting ‘‘or the return of such property’’ 

12 before ‘‘shall be disregarded’’, and 

13 (3) by striking ‘‘REGARDING LOAN PRINCIPAL’’ in 

14 the heading thereof. 

15 (e) EFFECTIVE DATE.—The amendments made by this 

16 section shall apply to loans made, and uses of property, 

17 after the date of the enactment of this Act. 

18 SEC. 534. REPORTING REQUIREMENT OF UNITED STATES 

19 OWNERS OF FOREIGN TRUSTS. 

20 (a) IN GENERAL.—Paragraph (1) of section 6048(b) 

21 is amended by inserting ‘‘shall submit such information as 

22 the Secretary may prescribe with respect to such trust for 

23 such year and’’ before ‘‘shall be responsible to ensure’’. 
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1 (b) EFFECTIVE DATE.—The amendment made by this 

2 section shall apply to taxable years beginning after the date 

3 of the enactment of this Act. 

4 SEC. 535. MINIMUM PENALTY WITH RESPECT TO FAILURE 

5 TO REPORT ON CERTAIN FOREIGN TRUSTS. 

6 (a) IN GENERAL.—Subsection (a) of section 6677 is 

7 amended— 

8 (1) by inserting ‘‘the greater of $10,000 or’’ be9 fore ‘‘35 percent’’, and 

10 (2) by striking the last sentence and inserting 

11 the following: ‘‘At such time as the gross reportable 

12 amount with respect to any failure can be determined 

13 by the Secretary, any subsequent penalty imposed 

14 under this subsection with respect to such failure shall 

15 be reduced as necessary to assure that the aggregate 

16 amount of such penalties do not exceed the gross re17 portable amount (and to the extent that such aggre18 gate amount already exceeds the gross reportable 

19 amount the Secretary shall refund such excess to the 

20 taxpayer).’’ 

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

22 section shall apply to notices and returns required to be 

23 filed after December 31, 2009. 
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1 PART V—SUBSTITUTE DIVIDENDS AND DIVIDEND 

2 EQUIVALENT PAYMENTS RECEIVED BY FOR3 EIGN PERSONS TREATED AS DIVIDENDS 

4 SEC. 541. SUBSTITUTE DIVIDENDS AND DIVIDEND EQUIVA5 LENT PAYMENTS RECEIVED BY FOREIGN PER6 SONS TREATED AS DIVIDENDS. 

7 (a) IN GENERAL.—Section 871 is amended by redesig8 nating subsection (l) as subsection (m) and by inserting 

9 after subsection (k) the following new subsection: 

10 ‘‘(l) TREATMENT OF DIVIDEND EQUIVALENT PAY11 MENTS.— 

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

13 (a), sections 881 and 4948(a), and chapters 3 and 4, 

14 a dividend equivalent shall be treated as a dividend 

15 from sources within the United States. 

16 ‘‘(2) DIVIDEND EQUIVALENT.—For purposes of 

17 this subsection, the term ‘dividend equivalent’ 

18 means— 

19 ‘‘(A) any substitute dividend made pursu20 ant to a securities lending or a sale-repurchase 

21 transaction that (directly or indirectly) is con22 tingent upon, or determined by reference to, the 

23 payment of a dividend from sources within the 

24 United States, 

25 ‘‘(B) any payment made pursuant to a 

26 specified notional principal contract that (di-
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1 rectly or indirectly) is contingent upon, or deter2 mined by reference to, the payment of a dividend 

3 from sources within the United States, and 

4 ‘‘(C) any other payment determined by the 

5 Secretary to be substantially similar to a pay6 ment described in subparagraph (A) or (B). 

7 ‘‘(3) SPECIFIED NOTIONAL PRINCIPAL CON8 TRACT.—For purposes of this subsection, the term 

9 ‘specified notional principal contract’ means— 

10 ‘‘(A) any notional principal contract if— 

11 ‘‘(i) in connection with entering into 

12 such contract, any long party to the con13 tract transfers the underlying security to 

14 any short party to the contract, 

15 ‘‘(ii) in connection with the termi16 nation of such contract, any short party to 

17 the contract transfers the underlying secu18 rity to any long party to the contract, 

19 ‘‘(iii) the underlying security is not 

20 readily tradable on an established securities 

21 market, 

22 ‘‘(iv) in connection with entering into 

23 such contract, the underlying security is 

24 posted as collateral by any short party to 
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1 the contract with any long party to the con2 tract, or 

3 ‘‘(v) such contract is identified by the 

4 Secretary as a specified notional principal 

5 contract, 

6 ‘‘(B) in the case of payments made after the 

7 date which is 2 years after the date of the enact8 ment of this subsection, any notional principal 

9 contract unless the Secretary determines that 

10 such contract is of a type which does not have 

11 the potential for tax avoidance. 

12 ‘‘(4) DEFINITIONS.—For purposes of paragraph 

13 (3)(A)— 

14 ‘‘(A) LONG PARTY.—The term ‘long party’ 

15 means, with respect to any underlying security 

16 of any notional principal contract, any party to 

17 the contract which is entitled to receive any pay18 ment pursuant to such contract which is contin19 gent upon, or determined by reference to, the 

20 payment of a dividend from sources within the 

21 United States with respect to such underlying se22 curity. 

23 ‘‘(B) SHORT PARTY.—The term ‘short 

24 party’ means, with respect to any underlying se25 curity of any notional principal contract, any 
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1 party to the contract which is not a long party 

2 with respect to such underlying security. 

3 ‘‘(C) UNDERLYING SECURITY.—The term 

4 ‘underlying security’ means, with respect to any 

5 notional principal contract, the security with re6 spect to which the dividend referred to in para7 graph (2)(B) is paid. For purposes of this para8 graph, any index or fixed basket of securities 

9 shall be treated as a single security. 

10 ‘‘(5) PAYMENTS DETERMINED ON GROSS

11 BASIS.—For purposes of this subsection, the term 

12 ‘payment’ includes any gross amount which is used 

13 in computing any net amount which is transferred to 

14 or from the taxpayer. 

15 ‘‘(6) PREVENTION OF OVER-WITHHOLDING.—In 

16 the case of any chain of dividend equivalents one or 

17 more of which is subject to tax under subsection (a) 

18 or section 881, the Secretary may reduce such tax, but 

19 only to the extent that the taxpayer can establish that 

20 such tax has been paid with respect to another divi21 dend equivalent in such chain, or is not otherwise 

22 due, or as the Secretary determines is appropriate to 

23 address the role of financial intermediaries in such 

24 chain. For purposes of this paragraph, a dividend 

25 shall be treated as a dividend equivalent. 
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1 ‘‘(7) COORDINATION WITH CHAPTERS 3 AND 4.— 

2 For purposes of chapters 3 and 4, each person that 

3 is a party to any contract or other arrangement that 

4 provides for the payment of a dividend equivalent 

5 shall be treated as having control of such payment.’’. 

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

7 section shall apply to payments made on or after the date 

8 that is 180 days after the date of the enactment of this Act. 

9 Subtitle B—Delay in Application of 

10 Worldwide Allocation of Interest 

11 SEC. 551. DELAY IN APPLICATION OF WORLDWIDE ALLOCA12 TION OF INTEREST. 

13 (a) IN GENERAL.—Paragraphs (5)(D) and (6) of sec14 tion 864(f) are each amended by striking ‘‘December 31, 

15 2017’’ and inserting ‘‘December 31, 2019’’. 

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

17 section shall take effect on the date of the enactment of this 

18 Act. 

Attest: 

Secretary. 
111TH CONGRESS 

2D SESSION H.R. 2847 

HOUSE AMENDMENT TO 

SENATE AMENDMENT TO 

SENATE AMENDMENT