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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2847 Engrossed Amendment Senate (EAS)]

                  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:

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

    (a) Short Title.--This Act may be cited as the ``Hiring Incentives 
to Restore Employment Act''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.
    (c) Table of Contents.--The table of contents for this Act is as 
follows:

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

    TITLE I--INCENTIVES FOR HIRING AND RETAINING UNEMPLOYED WORKERS

Sec. 101. Payroll tax forgiveness for hiring unemployed workers.
Sec. 102. Business credit for retention of certain newly hired 
                            individuals in 2010.

                          TITLE II--EXPENSING

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

                 TITLE III--QUALIFIED TAX CREDIT BONDS

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

     TITLE IV--EXTENSION OF CURRENT SURFACE TRANSPORTATION PROGRAMS

Sec. 401. Short title.

                    Subtitle A--Federal-aid Highways

Sec. 411. In general.
Sec. 412. Administrative expenses.
Sec. 413. Rescission of unobligated balances.
Sec. 414. Reconciliation of funds.

  Subtitle B--National Highway Traffic Safety Administration, Federal 
      Motor Carrier Safety Administration, and Additional Programs

Sec. 421. Extension of National Highway Traffic Safety Administration 
                            Highway Safety Programs.
Sec. 422. Extension of Federal Motor Carrier Safety Administration 
                            Programs.
Sec. 423. Additional programs.

               Subtitle C--Public Transportation Programs

Sec. 431. Allocation of funds for planning programs.
Sec. 432. Special rule for urbanized area formula grants.
Sec. 433. Allocating amounts for capital investment grants.
Sec. 434. Apportionment of formula grants for other than urbanized 
                            areas.
Sec. 435. Apportionment based on fixed guideway factors.
Sec. 436. Authorizations for public transportation.
Sec. 437. Amendments to SAFETEA-LU.

                     Subtitle D--Revenue Provisions

Sec. 441. Repeal of provision prohibiting the crediting of interest to 
                            the Highway Trust Fund.
Sec. 442. Restoration of certain foregone interest to Highway Trust 
                            Fund.
Sec. 443. Treatment of certain amounts appropriated to Highway Trust 
                            Fund.
Sec. 444. Termination of transfers from highway trust fund for certain 
                            repayments and credits.
Sec. 445. Extension of authority for expenditures.
Sec. 446. Level of obligation limitations.

                       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.

    TITLE I--INCENTIVES FOR HIRING AND RETAINING UNEMPLOYED WORKERS

SEC. 101. PAYROLL TAX FORGIVENESS FOR HIRING UNEMPLOYED WORKERS.

    (a) In General.--Section 3111 is amended by adding at the end the 
following new subsection:
    ``(d) Special Exemption for Certain Individuals Hired in 2010.--
            ``(1) In general.--Subsection (a) shall not apply to wages 
        paid by a qualified employer with respect to employment during 
        the period beginning on the day after the date of the enactment 
        of this subsection and ending on December 31, 2010, of any 
        qualified individual for services performed--
                    ``(A) in a trade or business of such qualified 
                employer, or
                    ``(B) in the case of a qualified employer exempt 
                from tax under section 501(a), in furtherance of the 
                activities related to the purpose or function 
                constituting the basis of the employer's exemption 
                under section 501.
            ``(2) Qualified employer.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `qualified employer' 
                means any employer other than the United States, any 
                State, or any political subdivision thereof, or any 
                instrumentality of the foregoing.
                    ``(B) Treatment of employees of post-secondary 
                educational institutions.--Notwithstanding subparagraph 
                (A), the term `qualified employer' includes any 
                employer which is a public institution of higher 
                education (as defined in section 101(b) of the Higher 
                Education Act of 1965).
            ``(3) Qualified individual.--For purposes of this 
        subsection, the term `qualified individual' means any 
        individual who--
                    ``(A) begins employment with a qualified employer 
                after February 3, 2010, and before January 1, 2011,
                    ``(B) certifies by signed affidavit, under 
                penalties of perjury, that such individual has not been 
                employed for more than 40 hours during the 60-day 
                period ending on the date such individual begins such 
                employment,
                    ``(C) is not employed by the qualified employer to 
                replace another employee of such employer unless such 
                other employee separated from employment voluntarily or 
                for cause, and
                    ``(D) is not an individual described in section 
                51(i)(1) (applied by substituting `qualified employer' 
                for `taxpayer' each place it appears).
            ``(4) Election.--A qualified employer may elect to have 
        this subsection not apply. Such election shall be made in such 
        manner as the Secretary may require.''.
    (b) Coordination With Work Opportunity Credit.--Section 51(c) is 
amended by adding at the end the following new paragraph:
            ``(5) Coordination with payroll tax forgiveness.--The term 
        `wages' shall not include any amount paid or incurred to a 
        qualified individual (as defined in section 3111(d)(3)) during 
        the 1-year period beginning on the hiring date of such 
        individual by a qualified employer (as defined in section 
        3111(d)) unless such qualified employer makes an election not 
        to have section 3111(d) apply.''.
    (c) Transfers to Federal Old-Age and Survivors Insurance Trust 
Fund.--There are hereby appropriated to the Federal Old-Age and 
Survivors Trust Fund and the Federal Disability Insurance Trust Fund 
established under section 201 of the Social Security Act (42 U.S.C. 
401) amounts equal to the reduction in revenues to the Treasury by 
reason of the amendments made by subsection (a). Amounts appropriated 
by the preceding sentence shall be transferred from the general fund at 
such times and in such manner as to replicate to the extent possible 
the transfers which would have occurred to such Trust Fund had such 
amendments not been enacted.
    (d) Effective Date.--The amendments made by this section shall 
apply to wages paid after the date of the enactment of this Act.

SEC. 102. BUSINESS CREDIT FOR RETENTION OF CERTAIN NEWLY HIRED 
              INDIVIDUALS IN 2010.

    (a) In General.--In the case of any taxable year ending after the 
date of the enactment of this Act, the current year business credit 
determined under section 38(b) of the Internal Revenue Code of 1986 for 
such taxable year shall be increased by an amount equal to the product 
of--
            (1) $1,000, and
            (2) the number of retained workers with respect to which 
        subsection (b)(2) is first satisfied during such taxable year.
    (b) Retained Worker.--For purposes of this section, the term 
``retained worker'' means any qualified individual (as defined in 
section 3111(d)(3) of the Internal Revenue Code of 1986)--
            (1) who was employed by the taxpayer on any date during the 
        taxable year,
            (2) who was so employed by the taxpayer for a period of not 
        less than 52 consecutive weeks, and
            (3) whose wages for such employment during the last 26 
        weeks of such period equaled at least 80 percent of such wages 
        for the first 26 weeks of such period.
    (c) Limitation on Carrybacks.--No portion of the unused business 
credit under section 38 of the Internal Revenue Code of 1986 for any 
taxable year which is attributable to the increase in the current year 
business credit under this section may be carried to a taxable year 
beginning before the date of the enactment of this section.

                          TITLE II--EXPENSING

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

    (a) In General.--Subsection (b) of section 179 is amended--
            (1) by striking ``($125,000 in the case of taxable years 
        beginning after 2006 and before 2011)'' in paragraph (1) and 
        inserting ``($250,000 in the case of taxable years beginning 
        after 2007 and before 2011)'',
            (2) by striking ``($500,000 in the case of taxable years 
        beginning after 2006 and before 2011)'' in paragraph (2) and 
        inserting ``($800,000 in the case of taxable years beginning 
        after 2007 and before 2011)'',
            (3) by striking paragraphs (5) and (7), and
            (4) by redesignating paragraph (6) as paragraph (5).
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.

                 TITLE III--QUALIFIED TAX CREDIT BONDS

SEC. 301. ISSUER ALLOWED REFUNDABLE CREDIT FOR CERTAIN QUALIFIED TAX 
              CREDIT BONDS.

    (a) Credit Allowed.--Section 6431 is amended by adding at the end 
the following new subsection:
    ``(f) Application of Section to Certain Qualified Tax Credit 
Bonds.--
            ``(1) In general.--In the case of any specified tax credit 
        bond--
                    ``(A) such bond shall be treated as a qualified 
                bond for purposes of this section,
                    ``(B) subsection (a) shall be applied without 
                regard to the requirement that the qualified bond be 
                issued before January 1, 2011,
                    ``(C) the amount of the payment determined under 
                subsection (b) with respect to any interest payment 
                date under such bond shall be--
                            ``(i) in the case of a bond issued by a 
                        qualified small issuer, 65 percent of the 
                        amount of interest payable on such bond by such 
                        issuer with respect to such date, and
                            ``(ii) in the case of a bond issued by any 
                        other person, 45 percent of the amount of 
                        interest payable on such bond by such issuer 
                        with respect to such date,
                    ``(D) interest on any such bond shall be includible 
                in gross income for purposes of this title,
                    ``(E) no credit shall be allowed under section 54A 
                with respect to such bond,
                    ``(F) any payment made under subsection (b) shall 
                not be includible as income for purposes of this title, 
                and
                    ``(G) the deduction otherwise allowed under this 
                title to the issuer of such bond with respect to 
                interest paid under such bond shall be reduced by the 
                amount of the payment made under this section with 
                respect to such interest.
            ``(2) Definitions.--For purposes of this subsection--
                    ``(A) Specified tax credit bond.--The term 
                `specified tax credit bond' means any qualified tax 
                credit bond (as defined in section 54A(d)) if--
                            ``(i) such bond is--
                                    ``(I) a new clean renewable energy 
                                bond (as defined in section 54C),
                                    ``(II) a qualified energy 
                                conservation bond (as defined in 
                                section 54D),
                                    ``(III) a qualified zone academy 
                                bond (as defined in section 54E), or
                                    ``(IV) a qualified school 
                                construction bond (as defined in 
                                section 54F), and
                            ``(ii) the issuer of such bond makes an 
                        irrevocable election to have this subsection 
                        apply,
                    ``(B) Qualified small issuer.--The term `qualified 
                small issuer' means, with respect to any calendar year, 
                any issuer who is not reasonably expected to issue tax-
                exempt bonds (other than private activity bonds) and 
                specified tax credit bonds (determined without regard 
                to whether an election is made under this subsection) 
                during such calendar year in an aggregate face amount 
                exceeding $30,000,000.''.
    (b) Technical Corrections Relating to Qualified School Construction 
Bonds.--
            (1) The second sentence of section 54F(d)(1) is amended by 
        striking ``by the State'' and inserting ``by the State 
        education agency (or such other agency as is authorized under 
        State law to make such allocation)''.
            (2) The second sentence of section 54F(e) is amended by 
        striking ``subsection (d)(4)'' and inserting ``paragraphs (2) 
        and (4) of subsection (d)''.
    (c) Effective Dates.--
            (1) In general.--The amendment made by subsection (a) shall 
        apply to bonds issued after the date of the enactment of this 
        Act.
            (2) Technical corrections.--The amendments made by 
        subsection (b) shall take effect as if included in section 1521 
        of the American Recovery and Reinvestment Tax Act of 2009.

     TITLE IV--EXTENSION OF CURRENT SURFACE TRANSPORTATION PROGRAMS

SEC. 401. SHORT TITLE.

    This title may be cited as the ``Surface Transportation Extension 
Act of 2010''.

                    Subtitle A--Federal-aid Highways

SEC. 411. IN GENERAL.

    (a) In General.--Except as provided in this Act, requirements, 
authorities, conditions, eligibilities, limitations, and other 
provisions authorized under titles I, V, and VI of the SAFETEA-LU (119 
Stat. 1144), the SAFETEA-LU Technical Corrections Act of 2008 (122 
Stat. 1572), titles I and VI of the Intermodal Surface Transportation 
Act of 1991 (105 Stat. 1914), titles I and V of the Transportation 
Equity Act for the 21st Century (112 Stat. 107), and title 23, United 
States Code (excluding chapter 4 of that title), which would otherwise 
expire on or cease to apply after September 30, 2009, or the date 
specified in section 106(3) of the Continuing Appropriations 
Resolution, 2010 (Public Law 111-68), are incorporated by reference and 
shall continue in effect until December 31, 2010.
    (b) Authorization of Appropriations.--Except as provided in section 
412, there are authorized to be appropriated out of the Highway Trust 
Fund (other than the Mass Transit Account)--
            (1) for fiscal year 2010, a sum equal to the total amount 
        authorized to be appropriated out of the Highway Trust Fund for 
        programs, projects, and activities for fiscal year 2009 under 
        titles I, V, and VI of the SAFETEA-LU (119 Stat. 1144), and 
        title 23, United States Code (excluding chapter 4 of that 
        title); and
            (2) for the period beginning on October 1, 2010, and ending 
        on December 31, 2010, a sum equal to \1/4\ of the total amount 
        authorized to be appropriated out of the Highway Trust Fund for 
        programs, projects, and activities for fiscal year 2009 under 
        titles I, V, and VI of the SAFETEA-LU (119 Stat. 1144), and 
        title 23, United States Code (excluding chapter 4 of that 
        title).
    (c) Use of Funds.--
            (1) Fiscal year 2010.--Except as otherwise expressly 
        provided in this Act, funds authorized to be appropriated under 
        subsection (b)(1) for fiscal year 2010 shall be distributed, 
        administered, limited, and made available for obligation in the 
        same manner and at the same level as funds authorized to be 
        appropriated out of the Highway Trust Fund for fiscal year 2009 
        to carry out programs, projects, activities, eligibilities, and 
        requirements under the SAFETEA-LU (119 Stat. 1144), the 
        SAFETEA-LU Technical Corrections Act of 2008 (122 Stat. 1572), 
        titles I and VI of the Intermodal Surface Transportation Act of 
        1991 (105 Stat. 1914), titles I and V of the Transportation 
        Equity Act for the 21st Century (112 Stat. 107), and title 23, 
        United States Code (excluding chapter 4 of that title).
            (2) Fiscal year 2011.--Except as otherwise expressly 
        provided in this Act, funds authorized to be appropriated under 
        subsection (b)(2) for the period beginning on October 1, 2010, 
        and ending on December 31, 2010, shall be distributed, 
        administered, limited, and made available for obligation in the 
        same manner and at the same level as \1/4\ of the total amount 
        of funds authorized to be appropriated out of the Highway Trust 
        Fund for fiscal year 2009 to carry out programs, projects, 
        activities, eligibilities, and requirements under the SAFETEA-
        LU (119 Stat. 1144), the SAFETEA-LU Technical Corrections Act 
        of 2008 (122 Stat. 1572), titles I and VI of the Intermodal 
        Surface Transportation Act of 1991 (105 Stat. 1914), titles I 
        and V of the Transportation Equity Act for the 21st Century 
        (112 Stat. 107), and title 23, United States Code (excluding 
        chapter 4 of that title).
            (3) Calculation.--The amounts authorized to be appropriated 
        under subsection (b) shall be calculated without regard to any 
        rescission or cancellation of funds or contract authority for 
        fiscal year 2009 under the SAFETEA-LU (119 Stat. 1144) or any 
        other law.
            (4) Contract authority.--
                    (A) In general.--Except as provided in subparagraph 
                (B), funds authorized to be appropriated under this 
                section shall be available for obligation and shall be 
                administered in the same manner as if such funds were 
                apportioned under chapter 1 of title 23, United States 
                Code, and--
                            (i) for fiscal year 2010, shall be subject 
                        to a limitation on obligations for Federal-aid 
                        highways and highway safety construction 
                        programs included in an Act making 
                        appropriations for fiscal year 2010 or a 
                        portion of that fiscal year; and
                            (ii) for the period beginning on October 1, 
                        2010, and ending on December 31, 2010, shall be 
                        subject to a limitation on obligations included 
                        in an Act making appropriations for fiscal year 
                        2011 or a portion of that fiscal year, except 
                        that during such period obligations subject to 
                        such limitation shall not exceed \1/4\ of the 
                        limitation on obligations included in an Act 
                        making appropriations for fiscal year 2011.
                    (B) Exceptions.--A limitation on obligations 
                described in clause (i) or (ii) of subparagraph (A) 
                shall not apply to any obligation under--
                            (i) section 125 of title 23, United States 
                        Code; or
                            (ii) section 105 of title 23, United States 
                        Code--
                                    (I) for fiscal year 2010, only in 
                                an amount equal to $639,000,000; and
                                    (II) for the period beginning on 
                                October 1, 2010, and ending on December 
                                31, 2010, only in an amount equal to 
                                $159,750,000.
            (5) Calculations for distribution of obligation 
        limitation.--Upon enactment of an Act making appropriations for 
        the Department of Transportation for fiscal year 2011 (other 
        than an Act or resolution making continuing appropriations), 
        the Secretary shall--
                    (A) as necessary for purposes of making the 
                calculations for the distribution of any obligation 
                limitation under such Act, annualize the amount of 
                contract authority provided under this Act for Federal-
                aid highways and highway safety construction programs; 
                and
                    (B) multiply the resulting distribution of any 
                obligation limitation under such Act by \1/4\.
    (d) Extension and Flexibility for Certain Allocated Programs.--
            (1) Fiscal year 2010.--Notwithstanding any other provision 
        of law, for fiscal year 2010, the portion of the share of funds 
        of a State under subsection (b)(1) determined by the amount 
        that the State received or was authorized to receive for fiscal 
        year 2009 to carry out sections 1301, 1302, 1307, 1702, and 
        1934 of the SAFETEA-LU (119 Stat. 1198, 1204, 1217, 1256, and 
        1485), and section 144(f)(1) of title 23, United States Code, 
        shall be--
                    (A) made available to the State for programs 
                apportioned under sections 104(b) and 144 of title 23, 
                United States Code, and in the same proportion for each 
                such program that--
                            (i) the amount apportioned to the State for 
                        that program for fiscal year 2009; bears to
                            (ii) the amount apportioned to the State 
                        for fiscal year 2009 for all programs 
                        apportioned under such sections of such Code; 
                        and
                    (B) administered in the same manner and with the 
                same period of availability as such funding is 
                administered under programs identified in subparagraph 
                (A), except that no funds may be used to carry out the 
                project described in section 1307(d)(1) of the SAFETEA-
                LU (119 Stat. 1217; 122 Stat. 1577).
            (2) Fiscal year 2011.--Notwithstanding any other provision 
        of law, for the period beginning on October 1, 2010, and ending 
        on December 31, 2010, the portion of the share of funds of a 
        State under subsection (b)(2) determined by \1/4\ of the amount 
        that the State received or was authorized to receive for fiscal 
        year 2009 to carry out sections 1301, 1302, 1307, 1702, and 
        1934 of the SAFETEA-LU (119 Stat. 1198, 1204, 1217, 1256, and 
        1485) and section 144(f)(1) of title 23, United States Code, 
        shall be--
                    (A) made available to the State for programs 
                apportioned under sections 104(b) and 144 of title 23, 
                United States Code, and in the same proportion for each 
                such program that--
                            (i) the amount apportioned to the State for 
                        that program for fiscal year 2009; bears to
                            (ii) the amount apportioned to the State 
                        for fiscal year 2009 for all programs 
                        apportioned under such sections of such Code; 
                        and
                    (B) administered in the same manner and with the 
                same period of availability as such funding is 
                administered under programs identified in subparagraph 
                (A), except that no funds may be used to carry out the 
                project described in section 1307(d)(1) of the SAFETEA-
                LU (119 Stat. 1217; 122 Stat. 1577).
            (3) Territories and puerto rico.--
                    (A) Fiscal year 2010.--Notwithstanding any other 
                provision of law, for fiscal year 2010, the portion of 
                the share of funds of a territory or Puerto Rico under 
                paragraph (b)(1) determined by the amount that the 
                territory or Puerto Rico received or was authorized to 
                receive for fiscal year 2009 to carry out section 1934 
                of SAFETEA-LU (119 Stat. 1485), shall be--
                            (i) for a territory, made available and 
                        administered in the same manner as funding is 
                        made available and administered under section 
                        215 of title 23, United States Code; and
                            (ii) for Puerto Rico, made available and 
                        administered in the same manner as funding is 
                        made available and administered under section 
                        165 of title 23, United States Code.
                    (B) Fiscal year 2011.--Notwithstanding any other 
                provision of law, for the period beginning on October 
                1, 2010, and ending on December 31, 2010, the portion 
                of the share of funds of a territory or Puerto Rico 
                under paragraph (b)(2) determined by \1/4\ of the 
                amount that the territory or Puerto Rico received or 
                was authorized to receive for fiscal year 2009 to carry 
                out section 1934 of SAFETEA-LU (119 Stat. 1485), shall 
                be--
                            (i) for a territory, made available and 
                        administered in the same manner as funding is 
                        made available and administered under section 
                        215 of title 23, United States Code; and
                            (ii) for Puerto Rico, made available and 
                        administered in the same manner as funding is 
                        made available and administered under section 
                        165 of title 23, United States Code.
                    (C) Territory defined.--In this paragraph, the term 
                ``territory'' means any of the following territories of 
                the United States: American Samoa, the Commonwealth of 
                the Northern Mariana Islands, Guam, or the United 
                States Virgin Islands.
            (4) Additional funds.--
                    (A) In general.--No additional funds shall be 
                provided for any project or activity under subsection 
                (c), or paragraph (1) or (2) of this subsection, that 
                the Secretary of Transportation determines was 
                sufficiently funded before or during fiscal year 2009 
                to achieve the authorized purpose of the project or 
                activity.
                    (B) Reservation and redistribution of funds.--Funds 
                made available in accordance with paragraph (1) or (2) 
                of subsection (c) or paragraph (1) or (2) of this 
                subsection for a project or activity described in 
                subparagraph (A) shall be--
                            (i) reserved by the Secretary of 
                        Transportation; and
                            (ii) distributed to each State in 
                        accordance with paragraph (1) or (2) of 
                        subsection (c), or paragraph (1) or (2) of this 
                        subsection, as appropriate, for use in carrying 
                        out other highway projects and activities 
                        extended by subsection (c) or this subsection, 
                        in the proportion that--
                                    (I) the total amount of funds made 
                                available for fiscal year 2009 for 
                                projects and activities described in 
                                subparagraph (A) in the State; bears to
                                    (II) the total amount of funds made 
                                available for fiscal year 2009 for 
                                those projects and activities in all 
                                States.
    (e) Extension of Authorizations Under Title V of SAFETEA-LU.--
            (1) In general.--The programs authorized under paragraphs 
        (1) through (5) of section 5101(a) of the SAFETEA-LU (119 Stat. 
        1779) shall be continued--
                    (A) for fiscal year 2010, at the funding levels 
                authorized for those programs for fiscal year 2009; and
                    (B) for the period beginning on October 1, 2010, 
                and ending on December 31, 2010, at \1/4\ the funding 
                levels authorized for those programs for fiscal year 
                2009.
            (2) Distribution of funds.--Funds for programs continued 
        under paragraph (1) shall be distributed to major program areas 
        under those programs in the same proportions as funds were 
        allocated for those program areas for fiscal year 2009, except 
        that designations for specific activities shall not be required 
        to be continued for--
                    (A) fiscal year 2010; or
                    (B) the period beginning on October 1, 2010, and 
                ending on December 31, 2010.
            (3) Additional funds.--
                    (A) In general.--No additional funds shall be 
                provided for any project or activity under this 
                subsection that the Secretary of Transportation 
                determines was sufficiently funded before or during 
                fiscal year 2009 to achieve the authorized purpose of 
                the project or activity.
                    (B) Distribution.--Funds that would have been made 
                available under paragraph (1) for a project or activity 
                but for the prohibition under subparagraph (A) shall be 
                distributed in accordance with paragraph (2).

SEC. 412. ADMINISTRATIVE EXPENSES.

    (a) Authorization of Contract Authority.--Notwithstanding any other 
provision of this Act or any other law, there are authorized to be 
appropriated from the Highway Trust Fund (other than the Mass Transit 
Account), from amounts provided under section 411, for administrative 
expenses of the Federal-aid highway program--
            (1) $422,425,000 for fiscal year 2010; and
            (2) $105,606,250 for the period beginning on October 1, 
        2010, and ending on December 31, 2010.
    (b) Contract Authority.--Funds authorized to be appropriated by 
this section shall be--
            (1) available for obligation, and shall be administered, in 
        the same manner as if such funds were apportioned under chapter 
        1 of title 23, United States Code; and
            (2) subject to a limitation on obligations for Federal-aid 
        highways and highway safety construction programs, except that 
        such funds shall remain available until expended.

SEC. 413. RESCISSION OF UNOBLIGATED BALANCES.

    (a) In General.--The Secretary of Transportation shall restore 
funds rescinded pursuant to section 10212 of the SAFETEA-LU (Public Law 
109-59; 119 Stat. 1937) to the States and to the programs from which 
the funds were rescinded.
    (b) Administration of Funds.--The restored amounts shall be 
administered in the same manner as the funds originally rescinded, 
except those funds may only be used with an obligation limitation 
provided in an Act making appropriations for Federal-aid highways and 
highway safety construction programs enacted after implementation of 
the rescission under section 10212 of the SAFETEA-LU (Public Law 109-
59; 119 Stat. 1937).
    (c) Funding.--
            (1) In general.--There is authorized to be appropriated 
        from the Highway Trust Fund (other than the Mass Transit 
        Account) for fiscal year 2010 to carry out this section an 
        amount equal to the amount of funds rescinded under section 
        10212 of the SAFETEA-LU (Public Law 109-59; 119 Stat. 1937).
            (2) Availability for obligation.--Funds authorized to be 
        appropriated by this section shall be--
                    (A) made available under this section and available 
                for obligation in the same manner as if the funds were 
                apportioned under chapter 1 of title 23, United States 
                Code, except that the funds shall retain the 
                characteristics of the funds originally rescinded; and
                    (B) subject to a limitation on obligations for 
                Federal-aid highways and highway safety construction 
                programs included in an Act making appropriations for 
                fiscal year 2010 or a portion of the fiscal year.
    (d) Limitation.--No funds authorized to be restored under this 
section shall be restored after the end of fiscal year 2010.

SEC. 414. RECONCILIATION OF FUNDS.

    The Secretary shall reduce the amount apportioned or allocated for 
a program, project, or activity under this title by amounts apportioned 
or allocated pursuant to the Continuing Appropriations Resolution, 2010 
(Public Law 111-68).

  Subtitle B--National Highway Traffic Safety Administration, Federal 
      Motor Carrier Safety Administration, and Additional Programs

SEC. 421. EXTENSION OF NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION 
              HIGHWAY SAFETY PROGRAMS.

    (a) Chapter 4 Highway Safety Programs.--Section 2001(a)(1) of the 
SAFETEA-LU (119 Stat. 1519) is amended--
            (1) by striking ``and''; and
            (2) by striking ``2009.'' and inserting ``2009, 
        $235,000,000 for fiscal year 2010, and $58,750,000 for the 
        period beginning on October 1, 2010, and ending on December 31, 
        2010.''.
    (b) Highway Safety Research and Development.--Section 2001(a)(2) of 
the SAFETEA-LU (119 Stat. 1519) is amended--
            (1) by striking ``and''; and
            (2) by striking ``2009.'' and inserting ``2009, 
        $107,329,000 for fiscal year 2010, and $27,061,000 for the 
        period beginning on October 1, 2010, and ending on December 31, 
        2010.''.
    (c) Occupant Protection Incentive Grants.--
            (1) Extension of program.--Section 405(a) of title 23, 
        United States Code, is amended--
                    (A) in paragraph (3), by striking ``6'' and 
                inserting ``8''; and
                    (B) in paragraph (4)(C), by striking ``fifth and 
                sixth'' and inserting ``fifth through eighth''.
            (2) Authorization of appropriations.--Section 2001(a)(3) of 
        the SAFETEA-LU (119 Stat. 1519) is amended--
                    (A) by striking ``and''; and
                    (B) by striking ``2009.'' and inserting ``2009, 
                $25,000,000 for fiscal year 2010, and $6,250,000 for 
                the period beginning on October 1, 2010, and ending on 
                December 31, 2010.''.
    (d) Safety Belt Performance Grants.--Section 2001(a)(4) of the 
SAFETEA-LU (119 Stat. 1519) is amended--
            (1) by striking ``and''; and
            (2) by striking ``2009.'' and inserting ``2009, 
        $124,500,000 for fiscal year 2010, and $31,125,000 for the 
        period beginning on October 1, 2010, and ending on December 31, 
        2010.''.
    (e) State Traffic Safety Information System Improvements.--Section 
2001(a)(5) of the SAFETEA-LU (119 Stat. 1519) is amended--
            (1) by striking ``and''; and
            (2) by striking ``2009.'' and inserting ``2009, $34,500,000 
        for fiscal year 2010, and $8,625,000 for the period beginning 
        on October 1, 2010, and ending on December 31, 2010.''.
    (f) Alcohol-impaired Driving Countermeasures Incentive Grant 
Program.--
            (1) Extension of program.--Section 410 of title 23, United 
        States Code, is amended--
                    (A) in subsection (a)(3)(C), by striking ``fifth, 
                sixth, seventh, and eighth'' and inserting ``fifth 
                through tenth''; and
                    (B) in subsection (b)(2)(C), by striking ``2008 and 
                2009'' and inserting ``2008, 2009, 2010, and 2011''.
            (2) Authorization of appropriations.--Section 2001(a)(6) of 
        the SAFETEA-LU (119 Stat. 1519) is amended--
                    (A) by striking ``and''; and
                    (B) by striking ``2009.'' and inserting ``2009, 
                $139,000,000 for fiscal year 2010, and $34,750,000 for 
                the period beginning on October 1, 2010, and ending on 
                December 31, 2010.''.
    (g) National Driver Register.--Section 2001(a)(7) of the SAFETEA-LU 
(119 Stat. 1520) is amended--
            (1) by striking ``and''; and
            (2) by striking ``2009.'' and inserting ``2009, $4,078,000 
        for fiscal year 2010, and $1,029,000 for the period beginning 
        on October 1, 2010, and ending on December 31, 2010.''.
    (h) High Visibility Enforcement Program.--
            (1) Extension of program.--Section 2009(a) of the SAFETEA-
        LU (23 U.S.C. 402 note) is amended by striking ``2009'' and 
        inserting ``2011''.
            (2) Authorization of appropriations.--Section 2001(a)(8) of 
        the SAFETEA-LU (119 Stat. 1520) is amended--
                    (A) by striking ``and''; and
                    (B) by striking ``2009.'' and inserting ``2009, 
                $29,000,000 for fiscal year 2010, and $7,250,000 for 
                the period beginning on October 1, 2010, and ending on 
                December 31, 2010.''.
    (i) Motorcyclist Safety.--
            (1) Extension of program.--Section 2010(d)(1)(B) of the 
        SAFETEA-LU (23 U.S.C. 402 note) is amended by striking ``and 
        fourth'' and inserting ``fourth, fifth, and sixth''.
            (2) Authorization of appropriations.--Section 2001(a)(9) of 
        the SAFETEA-LU (119 Stat. 1520) is amended--
                    (A) by striking ``and''; and
                    (B) by striking ``2009.'' and inserting ``2009, 
                $7,000,000 for fiscal year 2010, and $1,750,000 for the 
                period beginning on October 1, 2010, and ending on 
                December 31, 2010.''.
    (j) Child Safety and Child Booster Seat Safety Incentive Grants.--
            (1) Extension of program.--Section 2011(c)(2) of the 
        SAFETEA-LU (23 U.S.C. 405 note) is amended by striking ``fourth 
        fiscal year'' and inserting ``fourth, fifth, and sixth fiscal 
        years''.
            (2) Authorization of appropriations.--Section 2001(a)(10) 
        of the SAFETEA-LU (119 Stat. 1520) is amended--
                    (A) by striking ``and''; and
                    (B) by striking ``2009.'' and inserting ``2009, 
                $7,000,000 for fiscal year 2010, and $1,750,000 for the 
                period beginning on October 1, 2010, and ending on 
                December 31, 2010.''.
    (k) Administrative Expenses.--Section 2001(a)(11) of the SAFETEA-LU 
(119 Stat. 1520) is amended--
            (1) by striking ``and'' the last place it appears; and
            (2) by striking ``2009.'' and inserting ``2009, $25,047,000 
        for fiscal year 2010, and $6,332,000 for the period beginning 
        on October 1, 2010, and ending on December 31, 2010.''.
    (l) Applicability of Title 23.--Section 2001(c) of the SAFETEA-LU 
(119 Stat. 1520) is amended by striking ``2009'' and inserting 
``2011''.
    (m) Drug-impaired Driving Enforcement.--Section 2013(f) of the 
SAFETEA-LU (23 U.S.C. 403 note) is amended by striking ``2009'' and 
inserting ``2011''.
    (n) Older Driver Safety; Law Enforcement Training.--Section 2017 of 
the SAFETEA-LU is amended--
            (1) in subsection (a)(1) (119 Stat. 1541), by striking 
        ``2009'' and inserting ``2011''; and
            (2) in subsection (b)(2) (23 U.S.C. 402 note), by striking 
        ``2009'' and inserting ``2011''.

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

    (a) Motor Carrier Safety Grants.--Section 31104(a) of title 49, 
United States Code, is amended--
            (1) in paragraph (4), by striking ``and'' at the end;
            (2) in paragraph (5), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(6) $209,000,000 for fiscal year 2010; and
            ``(7) $52,679,000 for the period beginning on October 1, 
        2010, and ending on December 31, 2010.''.
    (b) Administrative Expenses.--Section 31104(i)(1) of title 49, 
United States Code, is amended--
            (1) in subparagraph (D), by striking ``and'';
            (2) in subparagraph (E), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(F) ``(F) $239,828,000 for fiscal year 2010; and
                    ``(G) ``(G) $61,036,000 for the period beginning on 
                October 1, 2010, and ending on December 31, 2010.''.
    (c) Grant Programs.--Section 4101(c) of the SAFETEA-LU (119 Stat. 
1715) is amended--
            (1) in paragraph (1), by striking ``2009.'' and inserting 
        ``2009, and $25,000,000 for fiscal year 2010, and $6,301,000 
        for the period beginning on October 1, 2010, and ending on 
        December 31, 2010.'';
            (2) in paragraph (2), by striking ``2009.'' and inserting 
        ``2009, $32,000,000 for fiscal year 2010, and $8,066,000 for 
        the period beginning on October 1, 2010, and ending on December 
        31, 2010.'';
            (3) in paragraph (3), by striking ``2009.'' and inserting 
        ``2009, $5,000,000 for fiscal year 2010, and $1,260,000 for the 
        period beginning on October 1, 2010, and ending on December 31, 
        2010.'';
            (4) in paragraph (4), by striking ``2009.'' and inserting 
        ``2009, $25,000,000 for fiscal year 2010, and $6,301,000 for 
        the period beginning on October 1, 2010, and ending on December 
        31, 2010.''; and
            (5) in paragraph (5), by striking ``2009.'' and inserting 
        ``2009, $3,000,000 for fiscal year 2010, and $756,000 for the 
        period beginning on October 1, 2010, and ending on December 31, 
        2010.''.
    (d) High-priority Activities.--Section 31104(k) of title 49, United 
States Code, is amended by striking ``2009'' in paragraph (2) and 
inserting ``2009, $15,000,000 for fiscal year 2010, and $3,781,000 for 
the period beginning on October 1, 2010, and ending on December 31, 
2010''.
    (e) New Entrant Audits.--Section 31144(g)(5)(B) of title 49, United 
States Code, is amended by inserting ``(and up to $7,310,000 for the 
period beginning on October 1, 2010, and ending on December 31, 2010)'' 
after ``fiscal year''.
    (f) Commercial Driver's License Information System Modernization.--
Section 4123(d) of the SAFETEA-LU (119 Stat. 1736) is amended--
            (1) in paragraph (3), by striking ``and'' at the end;
            (2) in paragraph (4), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(5) $8,000,000 for fiscal year 2010; and
            ``(6) $2,016,000 for the period beginning on October 1, 
        2010, and ending on December 31, 2010.''.
    (g) Outreach and Education.--Section 4127(e) of the SAFETEA-LU (119 
Stat. 1741) is amended by striking ``and 2009'' and inserting ``2009, 
and 2010, and $252,000 to the Federal Motor Carrier Safety 
Administration, and $756,000 to the National Highway Traffic Safety 
Administration, for the period beginning on October 1, 2010, and ending 
on December 31, 2010,''.
    (h) Grant Program for Commercial Motor Vehicle Operators.--Section 
4134(c) of the SAFETEA-LU (119 Stat. 1744) is amended by striking 
``2009'' and inserting ``2009, 2010, and $252,000 for the period 
beginning on October 1, 2010, and ending on December 31, 2010,''.
    (i) Motor Carrier Safety Advisory Committee.--Section 4144(d) of 
the SAFETEA-LU (1119 Stat. 1748) is amended by striking ``September 30, 
2010'' and inserting ``December 31, 2010''.
    (j) Working Group for Development of Practices and Procedures To 
Enhance Federal-State Relations.--Section 4213(d) of the SAFETEA-LU (49 
U.S.C. 14710 note) is amended by striking ``September 30, 2009'' and 
inserting ``December 31, 2010''.

SEC. 423. ADDITIONAL PROGRAMS.

    (a) Hazardous Materials Research Projects.--Section 7131(c) of the 
SAFETEA-LU (119 Stat. 1910) is amended by striking ``through 2009'' and 
inserting ``through 2010, and $315,000 for the period beginning on 
October 1, 2010, and ending on December 31, 2010,''.
    (b) Dingell-Johnson Sport Fish Restoration Act.--Section 4 of the 
Dingell-Johnson Sport Fish Restoration Act (16 U.S.C. 777c) is 
amended--
            (1) in subsection (a), in the matter preceding paragraph 
        (1), by striking ``2009,'' and inserting ``2010 and for the 
        period beginning on October 1, 2010, and ending on December 31, 
        2010,''; and
            (2) in subsection (b)(1)(A), by striking ``2010,'' and 
        inserting ``and for the period beginning on October 1, 2010, 
        and ending on December 31, 2010,''.

               Subtitle C--Public Transportation Programs

SEC. 431. ALLOCATION OF FUNDS FOR PLANNING PROGRAMS.

    Section 5305(g) of title 49, United States Code, is amended by 
striking ``2009'' and inserting ``2010, and for the period beginning 
October 1, 2010, and ending December 31, 2010,''.

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

    Section 5307(b)(2) of title 49, United States Code, is amended--
            (1) in the paragraph heading, by striking ``2009'' and 
        inserting ``2010, and the period beginning october 1, 2010, and 
        ending december 31, 2010'';
            (2) in subparagraph (A), by striking ``2009,'' and 
        inserting ``2010, and the period beginning October 1, 2010, and 
        ending December 31, 2010,''; and
            (3) in subparagraph (E)--
                    (A) in the subparagraph heading, by striking ``and 
                2009'' and inserting ``through 2010 and during the 
                period beginning october 1, 2010, and ending december 
                31, 2010''; and
                    (B) in the matter preceding clause (i), by striking 
                ``and 2009'' and inserting ``through 2010, and during 
                the period beginning October 1, 2010, and ending 
                December 31, 2010,''.

SEC. 433. ALLOCATING AMOUNTS FOR CAPITAL INVESTMENT GRANTS.

    Section 5309(m) of title 49, United States Code, is amended--
            (1) in paragraph (2)--
                    (A) in the heading, by striking ``2009'' and 
                inserting ``2010 and october 1, 2010, through december 
                31, 2010'';
                    (B) in the matter preceding subparagraph (A), by 
                striking ``2009'' and inserting ``2010, and during the 
                period beginning October 1, 2010, and ending December 
                31, 2010,''; and
                    (C) in subparagraph (A)(i), by striking ``2009'' 
                and inserting ``2010, and $50,000,000 for the period 
                beginning October 1, 2010, and ending December 31, 
                2010,'';
            (2) in paragraph (6)--
                    (A) in subparagraph (B), by striking ``2009'' and 
                inserting ``2010, and $3,750,000 shall be available for 
                the period beginning October 1, 2010, and ending 
                December 31, 2010,''; and
                    (B) in subparagraph (C), by striking ``2009'' and 
                inserting ``2010, and $1,250,000 shall be available for 
                the period beginning October 1, 2010 and ending 
                December 31, 2010,''; and
            (3) in paragraph (7)--
                    (A) in subparagraph (A)--
                            (i) by redesignating clauses (i) through 
                        (viii) as subclauses (I) through (VIII), 
                        respectively;
                            (ii) in the matter preceding subclause (I), 
                        as so redesignated, by striking ``$10,000,000'' 
                        and all that follows through ``2009'' and 
                        inserting the following:
                            ``(i) Fiscal years 2006 through 2010.--
                        $10,000,000 shall be available in each of 
                        fiscal years 2006 through 2010''; and
                            (iii) by inserting after subclause (VIII), 
                        as so redesignated, the following:
                            ``(ii) Special rule for october 1, 2010, 
                        through december 31, 2010.--$2,500,000 shall be 
                        available in the period beginning October 1, 
                        2010, and ending December 31, 2010, for ferry 
                        boats or ferry terminal facilities. The 
                        Secretary shall set aside a portion of such 
                        amount in accordance with clause (i), except 
                        that the Secretary shall set aside 25 percent 
                        of each dollar amount specified in subclauses 
                        (I) through (VIII).'';''.
                    (B) in subparagraph (B), by inserting after 
                ``2009.'' the following:
                            ``(v) $13,500,000 for fiscal year 2010.
                            ``(vi) $3,375,000 for the period beginning 
                        October 1, 2010, and ending December 31, 
                        2010.'';
                    (C) in subparagraph (C), by inserting ``, and 
                during the period beginning October 1, 2010, and ending 
                December 31, 2010,'' after ``fiscal year'';
                    (D) in subparagraph (D), by inserting ``, and not 
                less than $8,750,000 shall be available for the period 
                beginning October 1, 2010, and ending December 31, 
                2010,'' after ``year''; and
                    (E) in subparagraph (E), by inserting ``, and 
                $750,000 shall be available for the period beginning 
                October 1, 2010, and ending December 31, 2010,'' after 
                ``year''.

SEC. 434. APPORTIONMENT OF FORMULA GRANTS FOR OTHER THAN URBANIZED 
              AREAS.

    Section 5311(c)(1) of title 49, United States Code, is amended by 
adding at the end the following:
                    ``(E) $15,000,000 for fiscal year 2010.
                    ``(F) $3,750,000 for the period beginning October 
                1, 2010, and ending December 31, 2010.''.

SEC. 435. APPORTIONMENT BASED ON FIXED GUIDEWAY FACTORS.

    Section 5337 of title 49, United States Code, is amended--
            (1) in subsection (a), in the matter preceding paragraph 
        (1), by striking ``2009'' and inserting ``2010''; and
            (2) by adding at the end the following:
    ``(g) Special Rule for October 1, 2010, Through December 31, 
2010.--The Secretary shall apportion amounts made available for fixed 
guideway modernization under section 5309 for the period beginning 
October 1, 2010, and ending December 31, 2010, in accordance with 
subsection (a), except that the Secretary shall apportion 25 percent of 
each dollar amount specified in subsection (a).''.

SEC. 436. AUTHORIZATIONS FOR PUBLIC TRANSPORTATION.

    (a) Formula and Bus Grants.--Section 5338(b) of title 49, United 
States Code, is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (C), by striking ``and'' at the 
                end;
                    (B) in subparagraph (D), by striking the period at 
                the end and inserting a semicolon; and
                    (C) by adding at the end the following:
                    ``(E) $8,360,565,000 for fiscal year 2010; and
                    ``(F) $2,090,141,250 for the period beginning 
                October 1, 2010, and ending December 31, 2010.''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (A), by striking ``and 
                $113,500,000 for fiscal year 2009'' and inserting 
                ``$113,500,000 for each of fiscal years 2009 and 2010, 
                and $28,375,000 for the period beginning October 1, 
                2010, and ending December 31, 2010,'';
                    (B) in subparagraph (B), by striking ``and 
                $4,160,365,000 for fiscal year 2009'' and inserting 
                ``$4,160,365,000 for each of fiscal years 2009 and 
                2010, and $1,040,091,250 for the period beginning 
                October 1, 2010, and ending December 31, 2010,'';
                    (C) in subparagraph (C), by striking ``and 
                $51,500,000 for fiscal year 2009'' and inserting 
                ``$51,500,000 for each of fiscal years 2009 and 2010, 
                and $12,875,000 for the period beginning October 1, 
                2010, and ending December 31, 2010,'';
                    (D) in subparagraph (D), by striking ``and 
                $1,666,500,000 for fiscal year 2009'' and inserting 
                ``$1,666,500,000 for each of fiscal years 2009 and 
                2010, and $416,625,000 for the period beginning October 
                1, 2010 and ending December 31, 2010,'';
                    (E) in subparagraph (E), by striking ``and 
                $984,000,000 for fiscal year 2009'' and inserting 
                ``$984,000,000 for each of fiscal years 2009 and 2010, 
                and $246,000,000 for the period beginning October 1, 
                2010 and ending December 31, 2010,'';
                    (F) in subparagraph (F), by striking ``and 
                $133,500,000 for fiscal year 2009'' and inserting 
                ``$133,500,000 for each of fiscal years 2009 and 2010, 
                and $33,375,000 for the period beginning October 1, 
                2010 and ending December 31, 2010,'';
                    (G) in subparagraph (G), by striking ``and 
                $465,000,000 for fiscal year 2009'' and inserting 
                ``$465,000,000 for each of fiscal years 2009 and 2010, 
                and $116,250,000 for the period beginning October 1, 
                2010 and ending December 31, 2010,'';
                    (H) in subparagraph (H), by striking ``and 
                $164,500,000 for fiscal year 2009'' and inserting 
                ``$164,500,000 for each of fiscal years 2009 and 2010, 
                and $41,125,000 for the period beginning October 1, 
                2010 and ending December 31, 2010,'';
                    (I) in subparagraph (I), by striking ``and 
                $92,500,000 for fiscal year 2009'' and inserting 
                ``$92,500,000 for each of fiscal years 2009 and 2010, 
                and $23,125,000 for the period beginning October 1, 
                2010 and ending December 31, 2010,'';
                    (J) in subparagraph (J), by striking ``and 
                $26,900,000 for fiscal year 2009'' and inserting 
                ``$26,900,000 for each of fiscal years 2009 and 2010, 
                and $6,725,000 for the period beginning October 1, 2010 
                and ending December 31, 2010,'';
                    (K) in subparagraph (K), by striking ``and 
                $3,500,000 for fiscal year 2009'' and inserting 
                ``$3,500,000 for each of fiscal years 2009 and 2010, 
                and $875,000 for the period beginning October 1, 2010 
                and ending December 31, 2010,'';
                    (L) in subparagraph (L), by striking ``and 
                $25,000,000 for fiscal year 2009'' and inserting 
                ``$25,000,000 for each of fiscal years 2009 and 2010, 
                and $6,250,000 for the period beginning October 1, 2010 
                and ending December 31, 2010,'';
                    (M) in subparagraph (M), by striking ``and 
                $465,000,000 for fiscal year 2009'' and inserting 
                ``$465,000,000 for each of fiscal years 2009 and 2010, 
                and $116,250,000 for the period beginning October 1, 
                2010 and ending December 31, 2010,''; and
                    (N) in subparagraph (N), by striking ``and 
                $8,800,000 for fiscal year 2009'' and inserting 
                ``$8,800,000 for each of fiscal years 2009 and 2010, 
                and $2,200,000 for the period beginning October 1, 2010 
                and ending December 31, 2010,''.
    (b) Capital Investment Grants.--Section 5338(c) of title 49, United 
States Code, is amended--
            (1) in paragraph (3), by striking ``and'' at the end;
            (2) in paragraph (4), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(5) $2,000,000,000 for fiscal year 2010; and
            ``(6) $500,000,000 for the period of October 1, 2010 
        through December 31, 2010.''.
    (c) Research and University Research Centers.--Section 5338(d) of 
title 49, United States Code, is amended--
            (1) in paragraph (1), in the matter preceding subparagraph 
        (A), by striking ``and $69,750,000 for fiscal year 2009'' and 
        inserting ``$69,750,000 for each of fiscal years 2009 and 2010, 
        and $17,437,500 for the period beginning October 1, 2010, and 
        ending December 31, 2010''; and
            (2) by adding at the end the following:
            ``(3) Additional authorizations.--
                    ``(A) In general.--
                            ``(i) Fiscal year 2010.--Of amounts 
                        authorized to be appropriated for fiscal year 
                        2010 under paragraph (1), the Secretary shall 
                        allocate for each of the activities and 
                        projects described in subparagraphs (A) through 
                        (F) of paragraph (1) an amount equal to the 
                        amount allocated for fiscal year 2009 under 
                        each such subparagraph.
                            ``(ii) October 1, 2010 through december 31, 
                        2010.--Of amounts authorized to be appropriated 
                        for the period beginning October 1, 2010, 
                        through December 31, 2010, under paragraph (1), 
                        the Secretary shall allocate for each of the 
                        activities and projects described in 
                        subparagraphs (A) through (F) of paragraph (1) 
                        an amount equal to 25 percent of the amount 
                        allocated for fiscal year 2009 under each such 
                        subparagraph.
                    ``(B) University centers program.--
                            ``(i) Fiscal year 2010.--Of the amounts 
                        allocated under subparagraph (A)(i) for the 
                        university centers program under section 5506 
                        for fiscal year 2010, the Secretary shall 
                        allocate for each program described in clauses 
                        (i) through (iii) and (v) through (viii) of 
                        paragraph (2)(A) an amount equal to the amount 
                        allocated for fiscal year 2009 under each such 
                        clause.
                            ``(ii) October 1, 2010 through december 31, 
                        2010.--Of the amounts allocated under 
                        subparagraph (A)(i) for the university centers 
                        program under section 5506 for the period 
                        beginning October 1, 2010, and ending December 
                        31, 2010, the Secretary shall allocate for each 
                        program described in clauses (i) through (iii) 
                        and (v) through (viii) of paragraph (2)(A) an 
                        amount equal to 25 percent of the amount 
                        allocated for fiscal year 2009 under each such 
                        clause.
                            ``(iii) Funding.--If the Secretary 
                        determines that a project or activity described 
                        in paragraph (2) received sufficient funds in 
                        fiscal year 2009, or a previous fiscal year, to 
                        carry out the purpose for which the project or 
                        activity was authorized, the Secretary may not 
                        allocate any amounts under clause (i) or (ii) 
                        for the project or activity for fiscal year 
                        2010, or any subsequent fiscal year.''.
    (d) Administration.--Section 5338(e) of title 49, United States 
Code, is amended--
            (1) in paragraph (3), by striking ``and'' at the end;
            (2) in paragraph (4), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(5) $98,911,000 for fiscal year 2010; and
            ``(6) $24,727,750 for the period beginning October 1, 2010, 
        and ending December 31, 2010.''.

SEC. 437. AMENDMENTS TO SAFETEA-LU.

    (a) Contracted Paratransit Pilot.--Section 3009(i)(1) of the 
SAFETEA-LU (Public Law 109-59; 119 Stat. 1572) is amended by striking 
``2009'' and inserting ``2010, and for the period beginning October 1, 
2010, and ending December 31, 2010''.
    (b) Public-private Partnership Pilot Program.--Section 3011 of the 
SAFETEA-LU (49 U.S.C. 5309 note) is amended--
            (1) in subsection (c)(5), by striking ``2009'' and 
        inserting ``2010 and the period beginning October 1, 2010, and 
        ending December 31, 2010''; and
            (2) in subsection (d), by striking ``2009'' and inserting 
        ``2010, and for the period beginning October 1, 2010, and 
        ending December 31, 2010''.
    (c) Elderly Individuals and Individuals With Disabilities Pilot 
Program.--Section 3012(b)(8) of the SAFETEA-LU (49 U.S.C. 5310 note) is 
amended by striking ``September 30, 2009'' and inserting ``December 31, 
2010''.
    (d) Obligation Ceiling.--Section 3040 of the SAFETEA-LU (Public Law 
109-59; 119 Stat. 1639) is amended--
            (1) in paragraph (4), by striking ``and'' at the end;
            (2) in paragraph (5), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(6) $10,507,752,000 for fiscal year 2010, of which not 
        more than $8,360,565,000 shall be from the Mass Transit 
        Account; and
            ``(7) $2,626,938,000 for the period beginning October 1, 
        2010, and ending December 31, 2010, of which not more than 
        $2,090,141,250 shall be from the Mass Transit Account.''.
    (e) Project Authorizations for New Fixed Guideway Capital 
Projects.--Section 3043 of the SAFETEA-LU (Public Law 109-59; 119 Stat. 
1640) is amended--
            (1) in subsection (b), in the matter preceding paragraph 
        (1), by striking ``2009'' and inserting ``2010, and for the 
        period beginning October 1, 2010, and ending December 31, 
        2010,''; and
            (2) in subsection (c), in the matter preceding paragraph 
        (1), by striking ``2009'' and inserting ``2010, and for the 
        period beginning October 1, 2010, and ending December 31, 
        2010,''.
    (f) Allocations for National Research and Technology Programs.--
Section 3046 of the SAFETEA-LU (49 U.S.C. 5338 note) is amended--
            (1) in subsection (b), by inserting ``or period'' after 
        ``fiscal year''; and
            (2) by adding at the end the following:
    ``(c) Additional Appropriations.--The Secretary shall allocate 
amounts appropriated pursuant to section 5338(d) of title 49, United 
States Code, for national research and technology programs under 
sections 5312, 5314, and 5322 of such title--
            ``(1) for fiscal year 2010, in amounts equal to the amounts 
        allocated for fiscal year 2009 under each of paragraphs (2), 
        (3), (5), (6), and (8) through (25) of subsection (a); and
            ``(2) for the period beginning October 1, 2010, and ending 
        December 31, 2010, in amounts equal to 25 percent of the 
        amounts allocated for fiscal year 2009 under each of paragraphs 
        (2), (3), (5), (6), and (8) through (25) of subsection (a).
    ``(d) Funding.--If the Secretary determines that a project or 
activity described in subsection (a) received sufficient funds in 
fiscal year 2009, or a previous fiscal year, to carry out the purpose 
for which the project or activity was authorized, the Secretary may not 
allocate any amounts under subsection (c) for the project or activity 
for fiscal year 2010, or any subsequent fiscal year.''.

                     Subtitle D--Revenue Provisions

SEC. 441. REPEAL OF PROVISION PROHIBITING THE CREDITING OF INTEREST TO 
              THE HIGHWAY TRUST FUND.

    (a) In General.--Paragraph (1) of section 9503(f) is amended by 
striking subparagraph (B).
    (b) Conforming Amendments.--Such paragraph, as amended by paragraph 
(1), is further amended--
            (1) by striking ``, and'' at the end of subparagraph (A) 
        and inserting a period; and
            (2) by striking ``1998'' in the matter preceding 
        subparagraph (A) and all that follows through ``the opening 
        balance'' and inserting ``1998, the opening balance''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this title.

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

    (a) In General.--Paragraph (2) of section 9503(f) is amended to 
read as follows:
            ``(2) Restoration of foregone interest.--Out of money in 
        the Treasury not otherwise appropriated, there is hereby 
        appropriated--
                    ``(A) $14,700,000,000 to the Highway Account (as 
                defined in subsection (e)(5)(B)) in the Highway Trust 
                Fund; and
                    ``(B) $4,800,000,000 to the Mass Transit Account in 
                the Highway Trust Fund.''.
    (b) Conforming Amendment.--Paragraph (1) of section 9503(e) is 
amended by striking ``this subsection'' and inserting ``this section''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 443. TREATMENT OF CERTAIN AMOUNTS APPROPRIATED TO HIGHWAY TRUST 
              FUND.

    (a) In General.--Section 9503(f), as amended by this Act, is 
amended by adding at the end the following new paragraph:
            ``(4) Treatment of appropriated amounts.--Any amount 
        appropriated under this subsection to the Highway Trust Fund 
        shall remain available without fiscal year limitation.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 444. TERMINATION OF TRANSFERS FROM HIGHWAY TRUST FUND FOR CERTAIN 
              REPAYMENTS AND CREDITS.

    (a) In General.--Section 9503(c) is amended by striking paragraph 
(2) and by redesignating paragraphs (3), (4), (5), and (6) as 
paragraphs (2), (3), (4), and (5), respectively.
    (b) Conforming Amendments.--
            (1) Section 9502(a) is amended by striking ``section 
        9503(c)(7)'' and inserting ``section 9503(c)(5)''.
            (2) Section 9503(b)(4)(D) is amended by striking 
        ``paragraph (4)(D) or (5)(B)'' and inserting ``paragraph (3)(D) 
        or (4)(B)''.
            (3) Paragraph (2) of section 9503(c), as redesignated by 
        subsection (a), is amended by adding at the end the following 
        new sentence: ``The amounts payable from the Highway Trust Fund 
        under the preceding sentence shall be determined by taking into 
        account only the portion of the taxes which are deposited into 
        the Highway Trust Fund.''.
            (4) Section 9503(e)(5)(A) is amended by striking ``(2), 
        (3), and (4)'' and inserting ``(2) and (3)''.
            (5) Section 9504(a) is amended by striking ``section 
        9503(c)(4), section 9503(c)(5)'' and inserting ``section 
        9503(c)(3), section 9503(c)(4)''.
            (6) Section 9504(b)(2) is amended by striking ``section 
        9503(c)(5)'' and inserting ``section 9503(c)(4)''.
            (7) Section 9504(e) is amended by striking ``section 
        9503(c)(4)'' and inserting section ``9503(c)(3)''.
    (c) Effective Date.--The amendment made by this section shall apply 
to transfers relating to amounts paid and credits allowed after the 
date of the enactment of this Act.

SEC. 445. EXTENSION OF AUTHORITY FOR EXPENDITURES.

    (a) Highways Trust Fund.--
            (1) Highway account.--Paragraph (1) of section 9503(c) is 
        amended--
                    (A) by striking ``September 30, 2009 (October 1, 
                2009'' and inserting ``December 31, 2010 (January 1, 
                2011''; and
                    (B) by striking ``under'' and all that follows and 
                inserting ``under the Surface Transportation Extension 
                Act of 2010 or any other provision of law which was 
                referred to in this paragraph before the date of the 
                enactment of such Act (as such Act and provisions of 
                law are in effect on the date of the enactment of such 
                Act).''.
            (2) Mass transit account.--Paragraph (3) of section 9503(e) 
        is amended--
                    (A) by striking ``October 1, 2009'' and inserting 
                ``January 1, 2011''; and
                    (B) by striking ``in accordance with'' and all that 
                follows and inserting ``in accordance with the Surface 
                Transportation Extension Act of 2010 or any other 
                provision of law which was referred to in this 
                paragraph before the date of the enactment of such Act 
                (as such Act and provisions of law are in effect on the 
                date of the enactment of such Act).''.
            (3) Exception to limitation on transfers.--Subparagraph (B) 
        of section 9503(b)(6) is amended by striking ``September 30, 
        2009 (October 1, 2009'' and inserting ``December 31, 2010 
        (January 1, 2011''.
    (b) Sport Fish Restoration and Boating Trust Fund.--
            (1) In general.--Paragraph (2) of section 9504(b) is 
        amended--
                    (A) by striking ``(as in effect'' in subparagraph 
                (A) and all that follows in such subparagraph and 
                inserting ``(as in effect on the date of the enactment 
                of the Surface Transportation Extension Act of 
                2010),'',
                    (B) by striking ``(as in effect'' in subparagraph 
                (B) and all that follows in such subparagraph and 
                inserting ``(as in effect on the date of the enactment 
                of the Surface Transportation Extension Act of 2010), 
                and'', and
                    (C) by striking ``(as in effect'' in subparagraph 
                (C) and all that follows in such subparagraph and 
                inserting ``(as in effect on the date of the enactment 
                of the Surface Transportation Extension Act of 
                2010).''.
            (2) Exception to limitation on transfers.--Paragraph (2) of 
        section 9504(d) is amended by striking ``October 1, 2009'' and 
        inserting ``January 1, 2011''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on September 30, 2009.

SEC. 446. LEVEL OF OBLIGATION LIMITATIONS.

    (a) Highway Category.--Section 8003(a) of the SAFETEA-LU (2 U.S.C. 
901 note; 119 Stat. 1917) is amended--
            (1) in paragraph (4), by striking ``and'' at the end;
            (2) in paragraph (5), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(6) for the period beginning on October 1, 2009, and 
        ending on September 30, 2010, $42,469,970,178.
            ``(7) for the period beginning on October 1, 2010, and 
        ending on December 31, 2010, $10,617,492,545.''.
    (b) Mass Transit Category.--Section 8003(b) of the SAFETEA-LU (2 
U.S.C. 901 note; 119 Stat. 1917) is amended--
            (1) in paragraph (4), by striking ``and'' at the end;
            (2) in paragraph (5), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(6) for the period beginning on October 1, 2009, and 
        ending on December 31, 2010, $10,338,065,000.
            ``(7) for the period beginning on October 1, 2010, and 
        ending on December 31, 2010, $2,584,516,250.''.
    (c) Treatment of Funds.--No adjustment pursuant to section 110 of 
title 23, United States Code, shall be made for fiscal year 2010 or 
fiscal year 2011.

                       TITLE V--OFFSET PROVISIONS

               Subtitle A--Foreign Account Tax Compliance

           PART I--INCREASED DISCLOSURE OF BENEFICIAL OWNERS

SEC. 501. REPORTING ON CERTAIN FOREIGN ACCOUNTS.

    (a) In General.--The Internal Revenue Code of 1986 is amended by 
inserting after chapter 3 the following new chapter:

  ``CHAPTER 4--TAXES TO ENFORCE REPORTING ON CERTAIN FOREIGN ACCOUNTS

``Sec. 1471. Withholdable payments to foreign financial institutions.
``Sec. 1472. Withholdable payments to other foreign entities.
``Sec. 1473. Definitions.
``Sec. 1474. Special rules.

``SEC. 1471. WITHHOLDABLE PAYMENTS TO FOREIGN FINANCIAL INSTITUTIONS.

    ``(a) In General.--In the case of any withholdable payment to a 
foreign financial institution which does not meet the requirements of 
subsection (b), the withholding agent with respect to such payment 
shall deduct and withhold from such payment a tax equal to 30 percent 
of the amount of such payment.
    ``(b) Reporting Requirements, etc.--
            ``(1) In general.--The requirements of this subsection are 
        met with respect to any foreign financial institution if an 
        agreement is in effect between such institution and the 
        Secretary under which such institution agrees--
                    ``(A) to obtain such information regarding each 
                holder of each account maintained by such institution 
                as is necessary to determine which (if any) of such 
                accounts are United States accounts,
                    ``(B) to comply with such verification and due 
                diligence procedures as the Secretary may require with 
                respect to the identification of United States 
                accounts,
                    ``(C) in the case of any United States account 
                maintained by such institution, to report on an annual 
                basis the information described in subsection (c) with 
                respect to such account,
                    ``(D) to deduct and withhold a tax equal to 30 
                percent of--
                            ``(i) any passthru payment which is made by 
                        such institution to a recalcitrant account 
                        holder or another foreign financial institution 
                        which does not meet the requirements of this 
                        subsection, and
                            ``(ii) in the case of any passthru payment 
                        which is made by such institution to a foreign 
                        financial institution which has in effect an 
                        election under paragraph (3) with respect to 
                        such payment, so much of such payment as is 
                        allocable to accounts held by recalcitrant 
                        account holders or foreign financial 
                        institutions which do not meet the requirements 
                        of this subsection,
                    ``(E) to comply with requests by the Secretary for 
                additional information with respect to any United 
                States account maintained by such institution, and
                    ``(F) in any case in which any foreign law would 
                (but for a waiver described in clause (i)) prevent the 
                reporting of any information referred to in this 
                subsection or subsection (c) with respect to any United 
                States account maintained by such institution--
                            ``(i) to attempt to obtain a valid and 
                        effective waiver of such law from each holder 
                        of such account, and
                            ``(ii) if a waiver described in clause (i) 
                        is not obtained from each such holder within a 
                        reasonable period of time, to close such 
                        account.
        Any agreement entered into under this subsection may be 
        terminated by the Secretary upon a determination by the 
        Secretary that the foreign financial institution is out of 
        compliance with such agreement.
            ``(2) Financial institutions deemed to meet requirements in 
        certain cases.--A foreign financial institution may be treated 
        by the Secretary as meeting the requirements of this subsection 
        if--
                    ``(A) such institution--
                            ``(i) complies with such procedures as the 
                        Secretary may prescribe to ensure that such 
                        institution does not maintain United States 
                        accounts, and
                            ``(ii) meets such other requirements as the 
                        Secretary may prescribe with respect to 
                        accounts of other foreign financial 
                        institutions maintained by such institution, or
                    ``(B) such institution is a member of a class of 
                institutions with respect to which the Secretary has 
                determined that the application of this section is not 
                necessary to carry out the purposes of this section.
            ``(3) Election to be withheld upon rather than withhold on 
        payments to recalcitrant account holders and nonparticipating 
        foreign financial institutions.--In the case of a foreign 
        financial institution which meets the requirements of this 
        subsection and such other requirements as the Secretary may 
        provide and which elects the application of this paragraph--
                    ``(A) the requirements of paragraph (1)(D) shall 
                not apply,
                    ``(B) the withholding tax imposed under subsection 
                (a) shall apply with respect to any withholdable 
                payment to such institution to the extent such payment 
                is allocable to accounts held by recalcitrant account 
                holders or foreign financial institutions which do not 
                meet the requirements of this subsection, and
                    ``(C) the agreement described in paragraph (1) 
                shall--
                            ``(i) require such institution to notify 
                        the withholding agent with respect to each such 
                        payment of the institution's election under 
                        this paragraph and such other information as 
                        may be necessary for the withholding agent to 
                        determine the appropriate amount to deduct and 
                        withhold from such payment, and
                            ``(ii) include a waiver of any right under 
                        any treaty of the United States with respect to 
                        any amount deducted and withheld pursuant to an 
                        election under this paragraph.
        To the extent provided by the Secretary, the election under 
        this paragraph may be made with respect to certain classes or 
        types of accounts of the foreign financial institution.
    ``(c) Information Required To Be Reported on United States 
Accounts.--
            ``(1) In general.--The agreement described in subsection 
        (b) shall require the foreign financial institution to report 
        the following with respect to each United States account 
        maintained by such institution:
                    ``(A) The name, address, and TIN of each account 
                holder which is a specified United States person and, 
                in the case of any account holder which is a United 
                States owned foreign entity, the name, address, and TIN 
                of each substantial United States owner of such entity.
                    ``(B) The account number.
                    ``(C) The account balance or value (determined at 
                such time and in such manner as the Secretary may 
                provide).
                    ``(D) Except to the extent provided by the 
                Secretary, the gross receipts and gross withdrawals or 
                payments from the account (determined for such period 
                and in such manner as the Secretary may provide).
            ``(2) Election to be subject to same reporting as united 
        states financial institutions.--In the case of a foreign 
        financial institution which elects the application of this 
        paragraph--
                    ``(A) subparagraphs (C) and (D) of paragraph (1) 
                shall not apply, and
                    ``(B) the agreement described in subsection (b) 
                shall require such foreign financial institution to 
                report such information with respect to each United 
                States account maintained by such institution as such 
                institution would be required to report under sections 
                6041, 6042, 6045, and 6049 if--
                            ``(i) such institution were a United States 
                        person, and
                            ``(ii) each holder of such account which is 
                        a specified United States person or United 
                        States owned foreign entity were a natural 
                        person and citizen of the United States.
                An election under this paragraph shall be made at such 
                time, in such manner, and subject to such conditions as 
                the Secretary may provide.
            ``(3) Separate requirements for qualified intermediaries.--
        In the case of a foreign financial institution which is treated 
        as a qualified intermediary by the Secretary for purposes of 
        section 1441 and the regulations issued thereunder, the 
        requirements of this section shall be in addition to any 
        reporting or other requirements imposed by the Secretary for 
        purposes of such treatment.
    ``(d) Definitions.--For purposes of this section--
            ``(1) United states account.--
                    ``(A) In general.--The term `United States account' 
                means any financial account which is held by one or 
                more specified United States persons or United States 
                owned foreign entities.
                    ``(B) Exception for certain accounts held by 
                individuals.--Unless the foreign financial institution 
                elects to not have this subparagraph apply, such term 
                shall not include any depository account maintained by 
                such financial institution if--
                            ``(i) each holder of such account is a 
                        natural person, and
                            ``(ii) with respect to each holder of such 
                        account, the aggregate value of all depository 
                        accounts held (in whole or in part) by such 
                        holder and maintained by the same financial 
                        institution which maintains such account does 
                        not exceed $50,000.
                To the extent provided by the Secretary, financial 
                institutions which are members of the same expanded 
                affiliated group shall be treated for purposes of 
                clause (ii) as a single financial institution.
                    ``(C) Elimination of duplicative reporting 
                requirements.--Such term shall not include any 
                financial account in a foreign financial institution 
                if--
                            ``(i) such account is held by another 
                        financial institution which meets the 
                        requirements of subsection (b), or
                            ``(ii) the holder of such account is 
                        otherwise subject to information reporting 
                        requirements which the Secretary determines 
                        would make the reporting required by this 
                        section with respect to United States accounts 
                        duplicative.
            ``(2) Financial account.--Except as otherwise provided by 
        the Secretary, the term `financial account' means, with respect 
        to any financial institution--
                    ``(A) any depository account maintained by such 
                financial institution,
                    ``(B) any custodial account maintained by such 
                financial institution, and
                    ``(C) any equity or debt interest in such financial 
                institution (other than interests which are regularly 
                traded on an established securities market).
        Any equity or debt interest which constitutes a financial 
        account under subparagraph (C) with respect to any financial 
        institution shall be treated for purposes of this section as 
        maintained by such financial institution.
            ``(3) United states owned foreign entity.--The term `United 
        States owned foreign entity' means any foreign entity which has 
        one or more substantial United States owners.
            ``(4) Foreign financial institution.--The term `foreign 
        financial institution' means any financial institution which is 
        a foreign entity. Except as otherwise provided by the 
        Secretary, such term shall not include a financial institution 
        which is organized under the laws of any possession of the 
        United States.
            ``(5) Financial institution.--Except as otherwise provided 
        by the Secretary, the term `financial institution' means any 
        entity that--
                    ``(A) accepts deposits in the ordinary course of a 
                banking or similar business,
                    ``(B) as a substantial portion of its business, 
                holds financial assets for the account of others, or
                    ``(C) is engaged (or holding itself out as being 
                engaged) primarily in the business of investing, 
                reinvesting, or trading in securities (as defined in 
                section 475(c)(2) without regard to the last sentence 
                thereof), partnership interests, commodities (as 
                defined in section 475(e)(2)), or any interest 
                (including a futures or forward contract or option) in 
                such securities, partnership interests, or commodities.
            ``(6) Recalcitrant account holder.--The term `recalcitrant 
        account holder' means any account holder which--
                    ``(A) fails to comply with reasonable requests for 
                the information referred to in subsection (b)(1)(A) or 
                (c)(1)(A), or
                    ``(B) fails to provide a waiver described in 
                subsection (b)(1)(F) upon request.
            ``(7) Passthru payment.--The term `passthru payment' means 
        any withholdable payment or other payment to the extent 
        attributable to a withholdable payment.
    ``(e) Affiliated Groups.--
            ``(1) In general.--The requirements of subsections (b) and 
        (c)(1) shall apply--
                    ``(A) with respect to United States accounts 
                maintained by the foreign financial institution, and
                    ``(B) except as otherwise provided by the 
                Secretary, with respect to United States accounts 
                maintained by each other foreign financial institution 
                (other than any foreign financial institution which 
                meets the requirements of subsection (b)) which is a 
                member of the same expanded affiliated group as such 
                foreign financial institution.
            ``(2) Expanded affiliated group.--For purposes of this 
        section, the term `expanded affiliated group' means an 
        affiliated group as defined in section 1504(a), determined--
                    ``(A) by substituting `more than 50 percent' for 
                `at least 80 percent' each place it appears, and
                    ``(B) without regard to paragraphs (2) and (3) of 
                section 1504(b).
        A partnership or any other entity (other than a corporation) 
        shall be treated as a member of an expanded affiliated group if 
        such entity is controlled (within the meaning of section 
        954(d)(3)) by members of such group (including any entity 
        treated as a member of such group by reason of this sentence).
    ``(f) Exception for Certain Payments.--Subsection (a) shall not 
apply to any payment to the extent that the beneficial owner of such 
payment is--
            ``(1) any foreign government, any political subdivision of 
        a foreign government, or any wholly owned agency or 
        instrumentality of any one or more of the foregoing,
            ``(2) any international organization or any wholly owned 
        agency or instrumentality thereof,
            ``(3) any foreign central bank of issue, or
            ``(4) any other class of persons identified by the 
        Secretary for purposes of this subsection as posing a low risk 
        of tax evasion.

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

    ``(a) In General.--In the case of any withholdable payment to a 
non-financial foreign entity, if--
            ``(1) the beneficial owner of such payment is such entity 
        or any other non-financial foreign entity, and
            ``(2) the requirements of subsection (b) are not met with 
        respect to such beneficial owner,
then the withholding agent with respect to such payment shall deduct 
and withhold from such payment a tax equal to 30 percent of the amount 
of such payment.
    ``(b) Requirements for Waiver of Withholding.--The requirements of 
this subsection are met with respect to the beneficial owner of a 
payment if--
            ``(1) such beneficial owner or the payee provides the 
        withholding agent with either--
                    ``(A) a certification that such beneficial owner 
                does not have any substantial United States owners, or
                    ``(B) the name, address, and TIN of each 
                substantial United States owner of such beneficial 
                owner,
            ``(2) the withholding agent does not know, or have reason 
        to know, that any information provided under paragraph (1) is 
        incorrect, and
            ``(3) the withholding agent reports the information 
        provided under paragraph (1)(B) to the Secretary in such manner 
        as the Secretary may provide.
    ``(c) Exceptions.--Subsection (a) shall not apply to--
            ``(1) except as otherwise provided by the Secretary, any 
        payment beneficially owned by--
                    ``(A) any corporation the stock of which is 
                regularly traded on an established securities market,
                    ``(B) any corporation which is a member of the same 
                expanded affiliated group (as defined in section 
                1471(e)(2) without regard to the last sentence thereof) 
                as a corporation described in subparagraph (A),
                    ``(C) any entity which is organized under the laws 
                of a possession of the United States and which is 
                wholly owned by one or more bona fide residents (as 
                defined in section 937(a)) of such possession,
                    ``(D) any foreign government, any political 
                subdivision of a foreign government, or any wholly 
                owned agency or instrumentality of any one or more of 
                the foregoing,
                    ``(E) any international organization or any wholly 
                owned agency or instrumentality thereof,
                    ``(F) any foreign central bank of issue, or
                    ``(G) any other class of persons identified by the 
                Secretary for purposes of this subsection, and
            ``(2) any class of payments identified by the Secretary for 
        purposes of this subsection as posing a low risk of tax 
        evasion.
    ``(d) Non-Financial Foreign Entity.--For purposes of this section, 
the term `non-financial foreign entity' means any foreign entity which 
is not a financial institution (as defined in section 1471(d)(5)).

``SEC. 1473. DEFINITIONS.

    ``For purposes of this chapter--
            ``(1) Withholdable payment.--Except as otherwise provided 
        by the Secretary--
                    ``(A) In general.--The term `withholdable payment' 
                means--
                            ``(i) any payment of interest (including 
                        any original issue discount), dividends, rents, 
                        salaries, wages, premiums, annuities, 
                        compensations, remunerations, emoluments, and 
                        other fixed or determinable annual or 
                        periodical gains, profits, and income, if such 
                        payment is from sources within the United 
                        States, and
                            ``(ii) any gross proceeds from the sale or 
                        other disposition of any property of a type 
                        which can produce interest or dividends from 
                        sources within the United States.
                    ``(B) Exception for income connected with united 
                states business.--Such term shall not include any item 
                of income which is taken into account under section 
                871(b)(1) or 882(a)(1) for the taxable year.
                    ``(C) Special rule for sourcing interest paid by 
                foreign branches of domestic financial institutions.--
                Subparagraph (B) of section 861(a)(1) shall not apply.
            ``(2) Substantial united states owner.--
                    ``(A) In general.--The term `substantial United 
                States owner' means--
                            ``(i) with respect to any corporation, any 
                        specified United States person which owns, 
                        directly or indirectly, more than 10 percent of 
                        the stock of such corporation (by vote or 
                        value),
                            ``(ii) with respect to any partnership, any 
                        specified United States person which owns, 
                        directly or indirectly, more than 10 percent of 
                        the profits interests or capital interests in 
                        such partnership, and
                            ``(iii) in the case of a trust--
                                    ``(I) any specified United States 
                                person treated as an owner of any 
                                portion of such trust under subpart E 
                                of part I of subchapter J of chapter 1, 
                                and
                                    ``(II) to the extent provided by 
                                the Secretary in regulations or other 
                                guidance, any specified United States 
                                person which holds, directly or 
                                indirectly, more than 10 percent of the 
                                beneficial interests of such trust.
                    ``(B) Special rule for investment vehicles.--In the 
                case of any financial institution described in section 
                1471(d)(5)(C), clauses (i), (ii), and (iii) of 
                subparagraph (A) shall be applied by substituting `0 
                percent' for `10 percent'.
            ``(3) Specified united states person.--Except as otherwise 
        provided by the Secretary, the term `specified United States 
        person' means any United States person other than--
                    ``(A) any corporation the stock of which is 
                regularly traded on an established securities market,
                    ``(B) any corporation which is a member of the same 
                expanded affiliated group (as defined in section 
                1471(e)(2) without regard to the last sentence thereof) 
                as a corporation the stock of which is regularly traded 
                on an established securities market,
                    ``(C) any organization exempt from taxation under 
                section 501(a) or an individual retirement plan,
                    ``(D) the United States or any wholly owned agency 
                or instrumentality thereof,
                    ``(E) any State, the District of Columbia, any 
                possession of the United States, any political 
                subdivision of any of the foregoing, or any wholly 
                owned agency or instrumentality of any one or more of 
                the foregoing,
                    ``(F) any bank (as defined in section 581),
                    ``(G) any real estate investment trust (as defined 
                in section 856),
                    ``(H) any regulated investment company (as defined 
                in section 851),
                    ``(I) any common trust fund (as defined in section 
                584(a)), and
                    ``(J) any trust which--
                            ``(i) is exempt from tax under section 
                        664(c), or
                            ``(ii) is described in section 4947(a)(1).
            ``(4) Withholding agent.--The term `withholding agent' 
        means all persons, in whatever capacity acting, having the 
        control, receipt, custody, disposal, or payment of any 
        withholdable payment.
            ``(5) Foreign entity.--The term `foreign entity' means any 
        entity which is not a United States person.

``SEC. 1474. SPECIAL RULES.

    ``(a) Liability for Withheld Tax.--Every person required to deduct 
and withhold any tax under this chapter is hereby made liable for such 
tax and is hereby indemnified against the claims and demands of any 
person for the amount of any payments made in accordance with the 
provisions of this chapter.
    ``(b) Credits and Refunds.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        determination of whether any tax deducted and withheld under 
        this chapter results in an overpayment by the beneficial owner 
        of the payment to which such tax is attributable shall be made 
        as if such tax had been deducted and withheld under subchapter 
        A of chapter 3.
            ``(2) Special rule where foreign financial institution is 
        beneficial owner of payment.--
                    ``(A) In general.--In the case of any tax properly 
                deducted and withheld under section 1471 from a 
                specified financial institution payment--
                            ``(i) if the foreign financial institution 
                        referred to in subparagraph (B) with respect to 
                        such payment is entitled to a reduced rate of 
                        tax with respect to such payment by reason of 
                        any treaty obligation of the United States--
                                    ``(I) the amount of any credit or 
                                refund with respect to such tax shall 
                                not exceed the amount of credit or 
                                refund attributable to such reduction 
                                in rate, and
                                    ``(II) no interest shall be allowed 
                                or paid with respect to such credit or 
                                refund, and
                            ``(ii) if such foreign financial 
                        institution is not so entitled, no credit or 
                        refund shall be allowed or paid with respect to 
                        such tax.
                    ``(B) Specified financial institution payment.--The 
                term `specified financial institution payment' means 
                any payment if the beneficial owner of such payment is 
                a foreign financial institution.
            ``(3) Requirement to identify substantial united states 
        owners.--No credit or refund shall be allowed or paid with 
        respect to any tax properly deducted and withheld under this 
        chapter unless the beneficial owner of the payment provides the 
        Secretary such information as the Secretary may require to 
        determine whether such beneficial owner is a United States 
        owned foreign entity (as defined in section 1471(d)(3)) and the 
        identity of any substantial United States owners of such 
        entity.
    ``(c) Confidentiality of Information.--
            ``(1) In general.--For purposes of this chapter, rules 
        similar to the rules of section 3406(f) shall apply.
            ``(2) Disclosure of list of participating foreign financial 
        institutions permitted.--The identity of a foreign financial 
        institution which meets the requirements of section 1471(b) 
        shall not be treated as return information for purposes of 
        section 6103.
    ``(d) Coordination With Other Withholding Provisions.--The 
Secretary shall provide for the coordination of this chapter with other 
withholding provisions under this title, including providing for the 
proper crediting of amounts deducted and withheld under this chapter 
against amounts required to be deducted and withheld under such other 
provisions.
    ``(e) Treatment of Withholding Under Agreements.--Any tax deducted 
and withheld pursuant to an agreement described in section 1471(b) 
shall be treated for purposes of this title as a tax deducted and 
withheld by a withholding agent under section 1471(a).
    ``(f) Regulations.--The Secretary shall prescribe such regulations 
or other guidance as may be necessary or appropriate to carry out the 
purposes of, and prevent the avoidance of, this chapter.''.
    (b) Special Rule for Interest on Overpayments.--Subsection (e) of 
section 6611 is amended by adding at the end the following new 
paragraph:
            ``(4) Certain withholding taxes.--In the case of any 
        overpayment resulting from tax deducted and withheld under 
        chapter 3 or 4, paragraphs (1), (2), and (3) shall be applied 
        by substituting `180 days' for `45 days' each place it 
        appears.''.
    (c) Conforming Amendments.--
            (1) Section 6414 is amended by inserting ``or 4'' after 
        ``chapter 3''.
            (2) Paragraph (1) of section 6501(b) is amended by 
        inserting ``4,'' after ``chapter 3,''.
            (3) Paragraph (2) of section 6501(b) is amended--
                    (A) by inserting ``4,'' after ``chapter 3,'' in the 
                text thereof, and
                    (B) by striking ``taxes and tax imposed by chapter 
                3'' in the heading thereof and inserting ``and 
                withholding taxes''.
            (4) Paragraph (3) of section 6513(b) is amended--
                    (A) by inserting ``or 4'' after ``chapter 3'', and
                    (B) by inserting ``or 1474(b)'' after ``section 
                1462''.
            (5) Subsection (c) of section 6513 is amended by inserting 
        ``4,'' after ``chapter 3,''.
            (6) Paragraph (1) of section 6724(d) is amended by 
        inserting ``under chapter 4 or'' after ``filed with the 
        Secretary'' in the last sentence thereof.
            (7) Paragraph (2) of section 6724(d) is amended by 
        inserting ``or 4'' after ``chapter 3''.
            (8) The table of chapters of the Internal Revenue Code of 
        1986 is amended by adding at the end the following new item:

``Chapter 4. Taxes To Enforce Reporting on Certain Foreign Accounts.''.

    (d) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        payments made after December 31, 2012.
            (2) Grandfathered treatment of outstanding obligations.--
        The amendments made by this section shall not require any 
        amount to be deducted or withheld from any payment under any 
        obligation outstanding on the date which is 2 years after the 
        date of the enactment of this Act or from the gross proceeds 
        from any disposition of such an obligation.
            (3) Interest on overpayments.--The amendment made by 
        subsection (b) shall apply--
                    (A) in the case of such amendment's application to 
                paragraph (1) of section 6611(e) of the Internal 
                Revenue Code of 1986, to returns the due date for which 
                (determined without regard to extensions) is after the 
                date of the enactment of this Act,
                    (B) in the case of such amendment's application to 
                paragraph (2) of such section, to claims for credit or 
                refund of any overpayment filed after the date of the 
                enactment of this Act (regardless of the taxable period 
                to which such refund relates), and
                    (C) in the case of such amendment's application to 
                paragraph (3) of such section, to refunds paid after 
                the date of the enactment of this Act (regardless of 
                the taxable period to which such refund relates).

SEC. 502. REPEAL OF CERTAIN FOREIGN EXCEPTIONS TO REGISTERED BOND 
              REQUIREMENTS.

    (a) Repeal of Exception to Denial of Deduction for Interest on Non-
Registered Bonds.--
            (1) In general.--Paragraph (2) of section 163(f) is amended 
        by striking subparagraph (B) and by redesignating subparagraph 
        (C) as subparagraph (B).
            (2) Conforming amendments.--
                    (A) Paragraph (2) of section 149(a) is amended by 
                inserting ``or'' at the end of subparagraph (A), by 
                striking ``, or'' at the end of subparagraph (B) and 
                inserting a period, and by striking subparagraph (C).
                    (B) Subparagraph (A) of section 163(f)(2) is 
                amended by inserting ``or'' at the end of clause (ii), 
                by striking ``, or'' at the end of clause (iii) and 
                inserting a period, and by striking clause (iv).
                    (C) Subparagraph (B) of section 163(f)(2), as 
                redesignated by paragraph (1), is amended--
                            (i) by striking ``, and subparagraph (B),'' 
                        in the matter preceding clause (i), and
                            (ii) by amending clause (i) to read as 
                        follows:
                            ``(i) such obligation is of a type which 
                        the Secretary has determined by regulations to 
                        be used frequently in avoiding Federal taxes, 
                        and''.
                    (D) Sections 165(j)(2)(A) and 1287(b)(1) are each 
                amended by striking ``except that clause (iv) of 
                subparagraph (A), and subparagraph (B), of such section 
                shall not apply''.
    (b) Repeal of Treatment as Portfolio Debt.--
            (1) In general.--Paragraph (2) of section 871(h) is amended 
        to read as follows:
            ``(2) Portfolio interest.--For purposes of this subsection, 
        the term `portfolio interest' means any interest (including 
        original issue discount) which--
                    ``(A) would be subject to tax under subsection (a) 
                but for this subsection, and
                    ``(B) is paid on an obligation--
                            ``(i) which is in registered form, and
                            ``(ii) with respect to which--
                                    ``(I) the United States person who 
                                would otherwise be required to deduct 
                                and withhold tax from such interest 
                                under section 1441(a) receives a 
                                statement (which meets the requirements 
                                of paragraph (5)) that the beneficial 
                                owner of the obligation is not a United 
                                States person, or
                                    ``(II) the Secretary has determined 
                                that such a statement is not required 
                                in order to carry out the purposes of 
                                this subsection.''.
            (2) Conforming amendments.--
                    (A) Section 871(h)(3)(A) is amended by striking 
                ``subparagraph (A) or (B) of''.
                    (B) Paragraph (2) of section 881(c) is amended to 
                read as follows:
            ``(2) Portfolio interest.--For purposes of this subsection, 
        the term `portfolio interest' means any interest (including 
        original issue discount) which--
                    ``(A) would be subject to tax under subsection (a) 
                but for this subsection, and
                    ``(B) is paid on an obligation--
                            ``(i) which is in registered form, and
                            ``(ii) with respect to which--
                                    ``(I) the person who would 
                                otherwise be required to deduct and 
                                withhold tax from such interest under 
                                section 1442(a) receives a statement 
                                which meets the requirements of section 
                                871(h)(5) that the beneficial owner of 
                                the obligation is not a United States 
                                person, or
                                    ``(II) the Secretary has determined 
                                that such a statement is not required 
                                in order to carry out the purposes of 
                                this subsection.''.
    (c) Dematerialized Book Entry Systems Treated as Registered Form.--
Paragraph (3) of section 163(f) is amended by inserting ``, except that 
a dematerialized book entry system or other book entry system specified 
by the Secretary shall be treated as a book entry system described in 
such section'' before the period at the end.
    (d) Repeal of Exception to Requirement That Treasury Obligations Be 
in Registered Form.--
            (1) In general.--Subsection (g) of section 3121 of title 
        31, United States Code, is amended by striking paragraph (2) 
        and by redesignating paragraphs (3) and (4) as paragraphs (2) 
        and (3), respectively.
            (2) Conforming amendments.--Paragraph (1) of section 
        3121(g) of such title is amended--
                    (A) by adding ``or'' at the end of subparagraph 
                (A),
                    (B) by striking ``; or'' at the end of subparagraph 
                (B) and inserting a period, and
                    (C) by striking subparagraph (C).
    (e) Preservation of Exception for Excise Tax Purposes.--Paragraph 
(1) of section 4701(b) is amended to read as follows:
            ``(1) Registration-required obligation.--
                    ``(A) In general.--The term `registration-required 
                obligation' has the same meaning as when used in 
                section 163(f), except that such term shall not include 
                any obligation which--
                            ``(i) is required to be registered under 
                        section 149(a), or
                            ``(ii) is described in subparagraph (B).
                    ``(B) Certain obligations not included.--An 
                obligation is described in this subparagraph if--
                            ``(i) there are arrangements reasonably 
                        designed to ensure that such obligation will be 
                        sold (or resold in connection with the original 
                        issue) only to a person who is not a United 
                        States person,
                            ``(ii) interest on such obligation is 
                        payable only outside the United States and its 
                        possessions, and
                            ``(iii) on the face of such obligation 
                        there is a statement that any United States 
                        person who holds such obligation will be 
                        subject to limitations under the United States 
                        income tax laws.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date which is 2 years after the 
date of the enactment of this Act.

        PART II--UNDER REPORTING WITH RESPECT TO FOREIGN ASSETS

SEC. 511. DISCLOSURE OF INFORMATION WITH RESPECT TO FOREIGN FINANCIAL 
              ASSETS.

    (a) In General.--Subpart A of part III of subchapter A of chapter 
61 is amended by inserting after section 6038C the following new 
section:

``SEC. 6038D. INFORMATION WITH RESPECT TO FOREIGN FINANCIAL ASSETS.

    ``(a) In General.--Any individual who, during any taxable year, 
holds any interest in a specified foreign financial asset shall attach 
to such person's return of tax imposed by subtitle A for such taxable 
year the information described in subsection (c) with respect to each 
such asset if the aggregate value of all such assets exceeds $50,000 
(or such higher dollar amount as the Secretary may prescribe).
    ``(b) Specified Foreign Financial Assets.--For purposes of this 
section, the term `specified foreign financial asset' means--
            ``(1) any financial account (as defined in section 
        1471(d)(2)) maintained by a foreign financial institution (as 
        defined in section 1471(d)(4)), and
            ``(2) any of the following assets which are not held in an 
        account maintained by a financial institution (as defined in 
        section 1471(d)(5))--
                    ``(A) any stock or security issued by a person 
                other than a United States person,
                    ``(B) any financial instrument or contract held for 
                investment that has an issuer or counterparty which is 
                other than a United States person, and
                    ``(C) any interest in a foreign entity (as defined 
                in section 1473).
    ``(c) Required Information.--The information described in this 
subsection with respect to any asset is:
            ``(1) In the case of any account, the name and address of 
        the financial institution in which such account is maintained 
        and the number of such account.
            ``(2) In the case of any stock or security, the name and 
        address of the issuer and such information as is necessary to 
        identify the class or issue of which such stock or security is 
        a part.
            ``(3) In the case of any other instrument, contract, or 
        interest--
                    ``(A) such information as is necessary to identify 
                such instrument, contract, or interest, and
                    ``(B) the names and addresses of all issuers and 
                counterparties with respect to such instrument, 
                contract, or interest.
            ``(4) The maximum value of the asset during the taxable 
        year.
    ``(d) Penalty for Failure To Disclose.--
            ``(1) In general.--If any individual fails to furnish the 
        information described in subsection (c) with respect to any 
        taxable year at the time and in the manner described in 
        subsection (a), such person shall pay a penalty of $10,000.
            ``(2) Increase in penalty where failure continues after 
        notification.--If any failure described in paragraph (1) 
        continues for more than 90 days after the day on which the 
        Secretary mails notice of such failure to the individual, such 
        individual shall pay a penalty (in addition to the penalties 
        under paragraph (1)) of $10,000 for each 30-day period (or 
        fraction thereof) during which such failure continues after the 
        expiration of such 90-day period. The penalty imposed under 
        this paragraph with respect to any failure shall not exceed 
        $50,000.
    ``(e) Presumption That Value of Specified Foreign Financial Assets 
Exceeds Dollar Threshold.--If--
            ``(1) the Secretary determines that an individual has an 
        interest in one or more specified foreign financial assets, and
            ``(2) such individual does not provide sufficient 
        information to demonstrate the aggregate value of such assets,
then the aggregate value of such assets shall be treated as being in 
excess of $50,000 (or such higher dollar amount as the Secretary 
prescribes for purposes of subsection (a)) for purposes of assessing 
the penalties imposed under this section.
    ``(f) Application to Certain Entities.--To the extent provided by 
the Secretary in regulations or other guidance, the provisions of this 
section shall apply to any domestic entity which is formed or availed 
of for purposes of holding, directly or indirectly, specified foreign 
financial assets, in the same manner as if such entity were an 
individual.
    ``(g) Reasonable Cause Exception.--No penalty shall be imposed by 
this section on any failure which is shown to be due to reasonable 
cause and not due to willful neglect. The fact that a foreign 
jurisdiction would impose a civil or criminal penalty on the taxpayer 
(or any other person) for disclosing the required information is not 
reasonable cause.
    ``(h) Regulations.--The Secretary shall prescribe such regulations 
or other guidance as may be necessary or appropriate to carry out the 
purposes of this section, including regulations or other guidance which 
provide appropriate exceptions from the application of this section in 
the case of--
            ``(1) classes of assets identified by the Secretary, 
        including any assets with respect to which the Secretary 
        determines that disclosure under this section would be 
        duplicative of other disclosures,
            ``(2) nonresident aliens, and
            ``(3) bona fide residents of any possession of the United 
        States.''.
    (b) Clerical Amendment.--The table of sections for subpart A of 
part III of subchapter A of chapter 61 is amended by inserting after 
the item relating to section 6038C the following new item:

``Sec. 6038D. Information with respect to foreign financial assets.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 512. PENALTIES FOR UNDERPAYMENTS ATTRIBUTABLE TO UNDISCLOSED 
              FOREIGN FINANCIAL ASSETS.

    (a) In General.--Section 6662, as amended by this Act, is amended--
            (1) in subsection (b), by inserting after paragraph (6) the 
        following new paragraph:
            ``(7) Any undisclosed foreign financial asset 
        understatement.'', and
            (2) by adding at the end the following new subsection:
    ``(j) Undisclosed Foreign Financial Asset Understatement.--
            ``(1) In general.--For purposes of this section, the term 
        `undisclosed foreign financial asset understatement' means, for 
        any taxable year, the portion of the understatement for such 
        taxable year which is attributable to any transaction involving 
        an undisclosed foreign financial asset.
            ``(2) Undisclosed foreign financial asset.--For purposes of 
        this subsection, the term `undisclosed foreign financial asset' 
        means, with respect to any taxable year, any asset with respect 
        to which information was required to be provided under section 
        6038, 6038B, 6038D, 6046A, or 6048 for such taxable year but 
        was not provided by the taxpayer as required under the 
        provisions of those sections.
            ``(3) Increase in penalty for undisclosed foreign financial 
        asset understatements.--In the case of any portion of an 
        underpayment which is attributable to any undisclosed foreign 
        financial asset understatement, subsection (a) shall be applied 
        with respect to such portion by substituting `40 percent' for 
        `20 percent'.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 513. MODIFICATION OF STATUTE OF LIMITATIONS FOR SIGNIFICANT 
              OMISSION OF INCOME IN CONNECTION WITH FOREIGN ASSETS.

    (a) Extension of Statute of Limitations.--
            (1) In general.--Paragraph (1) of section 6501(e) is 
        amended by redesignating subparagraphs (A) and (B) as 
        subparagraphs (B) and (C), respectively, and by inserting 
        before subparagraph (B) (as so redesignated) the following new 
        subparagraph:
                    ``(A) General rule.--If the taxpayer omits from 
                gross income an amount properly includible therein 
                and--
                            ``(i) such amount is in excess of 25 
                        percent of the amount of gross income stated in 
                        the return, or
                            ``(ii) such amount--
                                    ``(I) is attributable to one or 
                                more assets with respect to which 
                                information is required to be reported 
                                under section 6038D (or would be so 
                                required if such section were applied 
                                without regard to the dollar threshold 
                                specified in subsection (a) thereof and 
                                without regard to any exceptions 
                                provided pursuant to subsection (h)(1) 
                                thereof), and
                                    ``(II) is in excess of $5,000,
                the tax may be assessed, or a proceeding in court for 
                collection of such tax may be begun without assessment, 
                at any time within 6 years after the return was 
                filed.''.
            (2) Conforming amendments.--
                    (A) Subparagraph (B) of section 6501(e)(1), as 
                redesignated by paragraph (1), is amended by striking 
                all that precedes clause (i) and inserting the 
                following:
                    ``(B) Determination of gross income.--For purposes 
                of subparagraph (A)--''.
                    (B) Paragraph (2) of section 6229(c) is amended by 
                striking ``which is in excess of 25 percent of the 
                amount of gross income stated in its return'' and 
                inserting ``and such amount is described in clause (i) 
                or (ii) of section 6501(e)(1)(A)''.
    (b) Additional Reports Subject to Extended Period.--Paragraph (8) 
of section 6501(c) is amended--
            (1) by inserting ``pursuant to an election under section 
        1295(b) or'' before ``under section 6038'',
            (2) by inserting ``1298(f),'' before ``6038'', and
            (3) by inserting ``6038D,'' after ``6038B,''.
    (c) Clarifications Related to Failure To Disclose Foreign 
Transfers.--Paragraph (8) of section 6501(c) is amended by striking 
``event'' and inserting ``tax return, event,''.
    (d) Effective Date.--The amendments made by this section shall 
apply to--
            (1) returns filed after the date of the enactment of this 
        Act; and
            (2) returns filed on or before such date if the period 
        specified in section 6501 of the Internal Revenue Code of 1986 
        (determined without regard to such amendments) for assessment 
        of such taxes has not expired as of such date.

                 PART III--OTHER DISCLOSURE PROVISIONS

SEC. 521. REPORTING OF ACTIVITIES WITH RESPECT TO PASSIVE FOREIGN 
              INVESTMENT COMPANIES.

    (a) In General.--Section 1298 is amended by redesignating 
subsection (f) as subsection (g) and by inserting after subsection (e) 
the following new subsection:
    ``(f) Reporting Requirement.--Except as otherwise provided by the 
Secretary, each United States person who is a shareholder of a passive 
foreign investment company shall file an annual report containing such 
information as the Secretary may require.''.
    (b) Conforming Amendment.--Subsection (e) of section 1291 is 
amended by striking ``, (d), and (f)'' and inserting ``and (d)''.
    (c) Effective Date.--The amendments made by this section take 
effect on the date of the enactment of this Act.

SEC. 522. SECRETARY PERMITTED TO REQUIRE FINANCIAL INSTITUTIONS TO FILE 
              CERTAIN RETURNS RELATED TO WITHHOLDING ON FOREIGN 
              TRANSFERS ELECTRONICALLY.

    (a) In General.--Subsection (e) of section 6011 is amended by 
adding at the end the following new paragraph:
            ``(4) Special rule for returns filed by financial 
        institutions with respect to withholding on foreign 
        transfers.--The numerical limitation under paragraph (2)(A) 
        shall not apply to any return filed by a financial institution 
        (as defined in section 1471(d)(5)) with respect to tax for 
        which such institution is made liable under section 1461 or 
        1474(a).''.
    (b) Conforming Amendment.--Subsection (c) of section 6724 is 
amended by inserting ``or with respect to a return described in section 
6011(e)(4)'' before the end period.
    (c) Effective Date.--The amendment made by this section shall apply 
to returns the due date for which (determined without regard to 
extensions) is after the date of the enactment of this Act.

             PART IV--PROVISIONS RELATED TO FOREIGN TRUSTS

SEC. 531. CLARIFICATIONS WITH RESPECT TO FOREIGN TRUSTS WHICH ARE 
              TREATED AS HAVING A UNITED STATES BENEFICIARY.

    (a) In General.--Paragraph (1) of section 679(c) is amended by 
adding at the end the following:
        ``For purposes of subparagraph (A), an amount shall be treated 
        as accumulated for the benefit of a United States person even 
        if the United States person's interest in the trust is 
        contingent on a future event.''.
    (b) Clarification Regarding Discretion To Identify Beneficiaries.--
Subsection (c) of section 679 is amended by adding at the end the 
following new paragraph:
            ``(4) Special rule in case of discretion to identify 
        beneficiaries.--For purposes of paragraph (1)(A), if any person 
        has the discretion (by authority given in the trust agreement, 
        by power of appointment, or otherwise) of making a distribution 
        from the trust to, or for the benefit of, any person, such 
        trust shall be treated as having a beneficiary who is a United 
        States person unless--
                    ``(A) the terms of the trust specifically identify 
                the class of persons to whom such distributions may be 
                made, and
                    ``(B) none of those persons are United States 
                persons during the taxable year.''.
    (c) Clarification That Certain Agreements and Understandings Are 
Terms of the Trust.--Subsection (c) of section 679, as amended by 
subsection (b), is amended by adding at the end the following new 
paragraph:
            ``(5) Certain agreements and understandings treated as 
        terms of the trust.--For purposes of paragraph (1)(A), if any 
        United States person who directly or indirectly transfers 
        property to the trust is directly or indirectly involved in any 
        agreement or understanding (whether written, oral, or 
        otherwise) that may result in the income or corpus of the trust 
        being paid or accumulated to or for the benefit of a United 
        States person, such agreement or understanding shall be treated 
        as a term of the trust.''.

SEC. 532. PRESUMPTION THAT FOREIGN TRUST HAS UNITED STATES BENEFICIARY.

    (a) In General.--Section 679 is amended by redesignating subsection 
(d) as subsection (e) and inserting after subsection (c) the following 
new subsection:
    ``(d) Presumption That Foreign Trust Has United States 
Beneficiary.--If a United States person directly or indirectly 
transfers property to a foreign trust (other than a trust described in 
section 6048(a)(3)(B)(ii)), the Secretary may treat such trust as 
having a United States beneficiary for purposes of applying this 
section to such transfer unless such person--
            ``(1) submits such information to the Secretary as the 
        Secretary may require with respect to such transfer, and
            ``(2) demonstrates to the satisfaction of the Secretary 
        that such trust satisfies the requirements of subparagraphs (A) 
        and (B) of subsection (c)(1).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to transfers of property after the date of the enactment of this 
Act.

SEC. 533. UNCOMPENSATED USE OF TRUST PROPERTY.

    (a) In General.--Paragraph (1) of section 643(i) is amended--
            (1) by striking ``directly or indirectly to'' and inserting 
        ``(or permits the use of any other trust property) directly or 
        indirectly to or by'', and
            (2) by inserting ``(or the fair market value of the use of 
        such property)'' after ``the amount of such loan''.
    (b) Exception for Compensated Use.--Paragraph (2) of section 643(i) 
is amended by adding at the end the following new subparagraph:
                    ``(E) Exception for compensated use of property.--
                In the case of the use of any trust property other than 
                a loan of cash or marketable securities, paragraph (1) 
                shall not apply to the extent that the trust is paid 
                the fair market value of such use within a reasonable 
                period of time of such use.''.
    (c) Application to Grantor Trusts.--Subsection (c) of section 679, 
as amended by this Act, is amended by adding at the end the following 
new paragraph:
            ``(6) Uncompensated use of trust property treated as a 
        payment.--For purposes of this subsection, a loan of cash or 
        marketable securities (or the use of any other trust property) 
        directly or indirectly to or by any United States person 
        (whether or not a beneficiary under the terms of the trust) 
        shall be treated as paid or accumulated for the benefit of a 
        United States person. The preceding sentence shall not apply to 
        the extent that the United States person repays the loan at a 
        market rate of interest (or pays the fair market value of the 
        use of such property) within a reasonable period of time.''.
    (d) Conforming Amendments.--Paragraph (3) of section 643(i) is 
amended--
            (1) by inserting ``(or use of property)'' after ``If any 
        loan'',
            (2) by inserting ``or the return of such property'' before 
        ``shall be disregarded'', and
            (3) by striking ``regarding loan principal'' in the heading 
        thereof.
    (e) Effective Date.--The amendments made by this section shall 
apply to loans made, and uses of property, after the date of the 
enactment of this Act.

SEC. 534. REPORTING REQUIREMENT OF UNITED STATES OWNERS OF FOREIGN 
              TRUSTS.

    (a) In General.--Paragraph (1) of section 6048(b) is amended by 
inserting ``shall submit such information as the Secretary may 
prescribe with respect to such trust for such year and'' before ``shall 
be responsible to ensure''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

SEC. 535. MINIMUM PENALTY WITH RESPECT TO FAILURE TO REPORT ON CERTAIN 
              FOREIGN TRUSTS.

    (a) In General.--Subsection (a) of section 6677 is amended--
            (1) by inserting ``the greater of $10,000 or'' before ``35 
        percent'', and
            (2) by striking the last sentence and inserting the 
        following: ``At such time as the gross reportable amount with 
        respect to any failure can be determined by the Secretary, any 
        subsequent penalty imposed under this subsection with respect 
        to such failure shall be reduced as necessary to assure that 
        the aggregate amount of such penalties do not exceed the gross 
        reportable amount (and to the extent that such aggregate amount 
        already exceeds the gross reportable amount the Secretary shall 
        refund such excess to the taxpayer).''
    (b) Effective Date.--The amendments made by this section shall 
apply to notices and returns required to be filed after December 31, 
2009.

PART V--SUBSTITUTE DIVIDENDS AND DIVIDEND EQUIVALENT PAYMENTS RECEIVED 
                BY FOREIGN PERSONS TREATED AS DIVIDENDS

SEC. 541. SUBSTITUTE DIVIDENDS AND DIVIDEND EQUIVALENT PAYMENTS 
              RECEIVED BY FOREIGN PERSONS TREATED AS DIVIDENDS.

    (a) In General.--Section 871 is amended by redesignating subsection 
(l) as subsection (m) and by inserting after subsection (k) the 
following new subsection:
    ``(l) Treatment of Dividend Equivalent Payments.--
            ``(1) In general.--For purposes of subsection (a), sections 
        881 and 4948(a), and chapters 3 and 4, a dividend equivalent 
        shall be treated as a dividend from sources within the United 
        States.
            ``(2) Dividend equivalent.--For purposes of this 
        subsection, the term `dividend equivalent' means--
                    ``(A) any substitute dividend made pursuant to a 
                securities lending or a sale-repurchase transaction 
                that (directly or indirectly) is contingent upon, or 
                determined by reference to, the payment of a dividend 
                from sources within the United States,
                    ``(B) any payment made pursuant to a specified 
                notional principal contract that (directly or 
                indirectly) is contingent upon, or determined by 
                reference to, the payment of a dividend from sources 
                within the United States, and
                    ``(C) any other payment determined by the Secretary 
                to be substantially similar to a payment described in 
                subparagraph (A) or (B).
            ``(3) Specified notional principal contract.--For purposes 
        of this subsection, the term `specified notional principal 
        contract' means--
                    ``(A) any notional principal contract if--
                            ``(i) in connection with entering into such 
                        contract, any long party to the contract 
                        transfers the underlying security to any short 
                        party to the contract,
                            ``(ii) in connection with the termination 
                        of such contract, any short party to the 
                        contract transfers the underlying security to 
                        any long party to the contract,
                            ``(iii) the underlying security is not 
                        readily tradable on an established securities 
                        market,
                            ``(iv) in connection with entering into 
                        such contract, the underlying security is 
                        posted as collateral by any short party to the 
                        contract with any long party to the contract, 
                        or
                            ``(v) such contract is identified by the 
                        Secretary as a specified notional principal 
                        contract,
                    ``(B) in the case of payments made after the date 
                which is 2 years after the date of the enactment of 
                this subsection, any notional principal contract unless 
                the Secretary determines that such contract is of a 
                type which does not have the potential for tax 
                avoidance.
            ``(4) Definitions.--For purposes of paragraph (3)(A)--
                    ``(A) Long party.--The term `long party' means, 
                with respect to any underlying security of any notional 
                principal contract, any party to the contract which is 
                entitled to receive any payment pursuant to such 
                contract which is contingent upon, or determined by 
                reference to, the payment of a dividend from sources 
                within the United States with respect to such 
                underlying security.
                    ``(B) Short party.--The term `short party' means, 
                with respect to any underlying security of any notional 
                principal contract, any party to the contract which is 
                not a long party with respect to such underlying 
                security.
                    ``(C) Underlying security.--The term `underlying 
                security' means, with respect to any notional principal 
                contract, the security with respect to which the 
                dividend referred to in paragraph (2)(B) is paid. For 
                purposes of this paragraph, any index or fixed basket 
                of securities shall be treated as a single security.
            ``(5) Payments determined on gross basis.--For purposes of 
        this subsection, the term `payment' includes any gross amount 
        which is used in computing any net amount which is transferred 
        to or from the taxpayer.
            ``(6) Prevention of over-withholding.--In the case of any 
        chain of dividend equivalents one or more of which is subject 
        to tax under subsection (a) or section 881, the Secretary may 
        reduce such tax, but only to the extent that the taxpayer can 
        establish that such tax has been paid with respect to another 
        dividend equivalent in such chain, or is not otherwise due, or 
        as the Secretary determines is appropriate to address the role 
        of financial intermediaries in such chain. For purposes of this 
        paragraph, a dividend shall be treated as a dividend 
        equivalent.
            ``(7) Coordination with chapters 3 and 4.--For purposes of 
        chapters 3 and 4, each person that is a party to any contract 
        or other arrangement that provides for the payment of a 
        dividend equivalent shall be treated as having control of such 
        payment.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to payments made on or after the date that is 180 days after the 
date of the enactment of this Act.

  Subtitle B--Delay in Application of Worldwide Allocation of Interest

SEC. 551. DELAY IN APPLICATION OF WORLDWIDE ALLOCATION OF INTEREST.

    (a) In General.--Paragraphs (5)(D) and (6) of section 864(f) are 
each amended by striking ``December 31, 2017'' and inserting ``December 
31, 2019''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

            Attest:

                                                             Secretary.
111th CONGRESS

  2d Session

                               H.R. 2847

_______________________________________________________________________

        SENATE AMENDMENT TO HOUSE AMENDMENT TO SENATE AMENDMENT
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