is made within 31⁄2 months after the close of such 
taxable year. 
‘‘(g) DEFINITIONS RELATING TO SALARY MAINTE-
NANCE OF CALLED-UP RESERVISTS.—For purposes of 
subsection (d)(1)(C)(iii)— 
‘‘(1) READY
RESERVE/NATIONAL
GUARD
EM-
PLOYEE.— 
‘‘(A) IN GENERAL.—The term ‘Ready Re-
serve/National Guard employee’ means any em-
ployee— 
‘‘(i) who is a member of the Ready 
Reserve or of the National Guard, and 
‘‘(ii) who was an employee of the tax-
payer during the 1-year period ending on 
the day before the date that the employee 
begins qualified active duty. 
‘‘(B) NATIONAL GUARD.—The term ‘Na-
tional Guard’ has the meaning given such term 
by section 101(c)(1) of title 10, United States 
Code. 
‘‘(C) READY RESERVE.—The term ‘Ready 
Reserve’ has the meaning given such term by 
section 10142 of title 10, United States Code. 
‘‘(2) QUALIFIED
ACTIVE
DUTY.—The term 
‘qualified active duty’ means— 
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‘‘(A) active duty under an order or call for 
a period in excess of 90 days or for an indefi-
nite period, other than the training duty speci-
fied in— 
‘‘(i) section 10147 of title 10, United 
States Code (relating to training require-
ments for the Ready Reserve), or 
‘‘(ii) section 502(a) of title 32, United 
States Code (relating to required drills and 
field exercises for the National Guard), 
in connection with which an employee is entitled 
to reemployment rights and other benefits or to 
a leave of absence from employment under 
chapter 43 of title 38, United States Code, and 
‘‘(B) hospitalization incident to such active 
duty. 
‘‘(3) ACTIVE DUTY WAGE DIFFERENTIAL.— 
‘‘(A) IN GENERAL.—The active duty wage 
differential of a Ready Reserve/National Guard 
employee for any period of qualified active duty 
is the amount equal to the product of— 
‘‘(i) the daily wage differential of such 
employee for such period, multiplied by 
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‘‘(ii) the number of days that such 
employee is on qualified active duty during 
such period. 
‘‘(B) DAILY
WAGE
DIFFERENTIAL.—For 
purposes of subparagraph (A), the daily wage 
differential of a Ready Reserve/National Guard 
employee for any period is an amount equal to 
the excess of— 
‘‘(i) such employee’s average daily em-
ployer-provided compensation for such pe-
riod, over 
‘‘(ii) such employee’s average daily 
military pay for such period. 
‘‘(C) AVERAGE
DAILY
EMPLOYER-PRO-
VIDED COMPENSATION.— 
‘‘(i) IN
GENERAL.—For purposes of 
subparagraph (B), an employee’s average 
daily employer-provided compensation for 
any period is the average daily compensa-
tion paid by the employer to the employee 
for the 1-year period ending on the day be-
fore the date that the employee begins 
qualified active duty, adjusted for cost-of- 
living and other increases generally appli-
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cable to employees of the employer for 
such period. 
‘‘(ii) 
EMPLOYER-PROVIDED
COM-
PENSATION.—The 
term 
‘compensation’ 
means any remuneration for employment, 
whether in cash or in kind, which is allow-
able 
as 
a 
deduction 
under 
section 
162(a)(1). 
‘‘(D) AVERAGE DAILY MILITARY PAY.— 
‘‘(i) IN
GENERAL.—For purposes of 
subparagraph (B), a Ready Reserve/Na-
tional Guard employee’s average daily mili-
tary pay is the average daily military pay 
and allowances received by the employee on 
account of the employee’s performance of 
qualified active duty during the period. 
‘‘(ii) MILITARY
PAY
AND
ALLOW-
ANCES.—For purposes of clause (i)— 
‘‘(I) MILITARY
PAY.—The term 
‘military pay’ means pay (as defined 
in section 101(21) of title 37, United 
States Code). 
‘‘(II) ALLOWANCES.—The term 
‘allowances’ means the allowances 
payable to a member of the Armed 
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Forces of the United States under 
chapter 7 of such title. 
‘‘(h) REPORTS.—The Secretary may require such re-
porting as the Secretary determines to be appropriate to 
carry out this section. 
‘‘(i) APPLICATION OF SECTION.—This section shall 
apply to taxes imposed for taxable years beginning after 
the date of the enactment of this section and before Janu-
ary 1, 2011.’’ 
(b) PRIORITY OF LENDER.—Subsection (b) of section 
6323 of such Code is amended by adding at the end the 
following new paragraph: 
‘‘(11) LOANS SECURED BY GROW ACCOUNTS.— 
With respect to a GROW account (as defined in sec-
tion 6168(f)) with any bank (as defined in section 
408(n)), to the extent of any loan made by such 
bank without actual notice or knowledge of the exist-
ence of such lien, as against such bank, if such loan 
is secured by such account.’’ 
(c) CLERICAL AMENDMENT.—The table of sections 
for subchapter B of chapter 62 of such Code is amended 
by adding at the end the following new item: 
‘‘Sec. 6168. Extension of time for payment of tax for certain small busi-
nesses.’’. 
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