115 
‘‘(A) such amount shall be so includible in 
gross income when determinable, and 
‘‘(B) the tax imposed under this chapter 
for the taxable year in which such compensation 
is includible in gross income shall be increased 
by the sum of— 
‘‘(i) the amount of interest determined 
under paragraph (2), and 
‘‘(ii) an amount equal to 20 percent of 
the amount of such compensation. 
‘‘(2) INTEREST.—For purposes of paragraph 
(1)(B)(i), the interest determined under this para-
graph for any taxable year is the amount of interest 
at the underpayment rate under section 6621 plus 
1 percentage point on the underpayments that would 
have occurred had the deferred compensation been 
includible in gross income for the taxable year in 
which first deferred or, if later, the first taxable year 
in which such deferred compensation is not subject 
to a substantial risk of forfeiture. 
‘‘(d) OTHER DEFINITIONS AND SPECIAL RULES.— 
For purposes of this section— 
‘‘(1) SUBSTANTIAL RISK OF FORFEITURE.— 
‘‘(A) IN GENERAL.—The rights of a person 
to compensation shall be treated as subject to 
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116 
a substantial risk of forfeiture only if such per-
son’s rights to such compensation are condi-
tioned upon the future performance of substan-
tial services by any individual. 
‘‘(B) 
EXCEPTION
FOR
COMPENSATION 
BASED ON GAIN RECOGNIZED ON AN INVEST-
MENT ASSET.— 
‘‘(i) IN GENERAL.—To the extent pro-
vided in regulations prescribed by the Sec-
retary, if compensation of a service pro-
vider is determined solely by reference to 
the amount of gain recognized on the dis-
position of an investment asset, such com-
pensation shall be treated as subject to a 
substantial risk of forfeiture until the date 
of such disposition. 
‘‘(ii) INVESTMENT ASSET.—For pur-
poses of clause (i), the term ‘investment 
asset’ means any single asset (other than 
an investment fund or similar entity)— 
‘‘(I) acquired directly by an in-
vestment fund or similar entity, 
‘‘(II) with respect to which such 
entity does not (nor does any person 
related to such entity) participate in 
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bajohnson on PROD1PC77 with BILLS
117 
the active management of such asset 
(or if such asset is an interest in an 
entity, in the active management of 
the activities of such entity), and 
‘‘(III) substantially all of any 
gain on the disposition of which (other 
than such deferred compensation) is 
allocated to investors in such entity. 
‘‘(iii) COORDINATION
WITH
SPECIAL 
RULE.—Paragraph (3)(B) shall not apply 
to any compensation to which clause (i) 
applies. 
‘‘(2) COMPREHENSIVE FOREIGN INCOME TAX.— 
The term ‘comprehensive foreign income tax’ means, 
with respect to any foreign person, the income tax 
of a foreign country if— 
‘‘(A) such person is eligible for the benefits 
of a comprehensive income tax treaty between 
such foreign country and the United States, or 
‘‘(B) such person demonstrates to the sat-
isfaction of the Secretary that such foreign 
country has a comprehensive income tax. 
‘‘(3) NONQUALIFIED
DEFERRED
COMPENSA-
TION PLAN.— 
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118 
‘‘(A) 
IN
GENERAL.—The 
term 
‘non-
qualified deferred compensation plan’ has the 
meaning 
given 
such 
term 
under 
section 
409A(d), except that such term shall include 
any plan that provides a right to compensation 
based on the appreciation in value of a specified 
number of equity units of the service recipient. 
‘‘(B) 
EXCEPTION.—Compensation 
shall 
not be treated as deferred for purposes of this 
section if the service provider receives payment 
of such compensation not later than 12 months 
after the end of the taxable year of the service 
recipient during which the right to the payment 
of such compensation is no longer subject to a 
substantial risk of forfeiture. 
‘‘(4) SERVICE
PROVIDER.—The term ‘service 
provider’ has the meaning given such term in the 
regulations under section 409A, determined without 
regard to method of accounting. 
‘‘(5) EXCEPTION FOR CERTAIN COMPENSATION 
WITH
RESPECT
TO
EFFECTIVELY
CONNECTED
IN-
COME.—In the case of a foreign corporation with in-
come which is taxable under section 882, this section 
shall not apply to compensation payable by such for-
eign corporation which, had such compensation been 
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119 
paid in cash on the date that such compensation 
ceased to be subject to a substantial risk of for-
feiture, would have been deductible by such foreign 
corporation against such income. 
‘‘(6) EXCEPTION WITH RESPECT TO EMPLOY-
EES OF CERTAIN SUBSIDIARIES.—This section shall 
not apply to compensation deferred under a non-
qualified deferred compensation plan of a non-
qualified entity if— 
‘‘(A) such compensation is payable to an 
employee of a domestic subsidiary of such enti-
ty, and 
‘‘(B) such compensation is reasonably ex-
pected to be deductible by such subsidiary 
under section 404(a)(5) when such compensa-
tion is includible in income by such employee. 
‘‘(7) APPLICATION OF RULES.—Rules similar to 
the rules of paragraphs (5) and (6) of section 
409A(d) shall apply. 
‘‘(e) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary or appropriate to 
carry out the purposes of this section, including regula-
tions— 
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120 
‘‘(1) disregarding a substantial risk of for-
feiture in cases where necessary to carry out the 
purposes of this section, and 
‘‘(2) providing appropriate treatment where an 
individual who was employed by an employer which 
is not a nonqualified entity is temporarily employed 
by a nonqualified entity which is related to such em-
ployer.’’. 
(b) CONFORMING AMENDMENT.—Section 26(b)(2) is 
amended by striking ‘‘and’’ at the end of subparagraph 
(V), by striking the period at the end of subparagraph 
(W) and inserting ‘‘, and’’, and by adding at the end the 
following new subparagraph: 
‘‘(X) section 457A(c)(1)(B) (relating to de-
terminability of amounts of compensation).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
of subpart B of part II of subchapter E of chapter 1 is 
amended by inserting after the item relating to section 
457 the following new item: 
‘‘Sec. 457A. Nonqualified deferred compensation from certain tax indifferent 
parties.’’. 
(d) EFFECTIVE DATE.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the amendments made by 
this section shall apply to amounts deferred which 
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121 
are attributable to services performed after Decem-
ber 31, 2008. 
(2) APPLICATION TO EXISTING DEFERRALS.— 
In the case of any amount deferred to which the 
amendments made by this section do not apply solely 
by reason of the fact that the amount is attributable 
to services performed before January 1, 2009, to the 
extent such amount is not includible in gross income 
in a taxable year beginning before 2018, such 
amounts shall be includible in gross income in the 
later of— 
(A) the last taxable year beginning before 
2018, or 
(B) the taxable year in which there is no 
substantial risk of forfeiture of the rights to 
such compensation (determined in the same 
manner as determined for purposes of section 
457A of the Internal Revenue Code of 1986, as 
added by this section). 
(3) ACCELERATED PAYMENTS.—No later than 
120 days after the date of the enactment of this Act, 
the Secretary shall issue guidance providing a lim-
ited period of time during which a nonqualified de-
ferred compensation arrangement attributable to 
services performed on or before December 31, 2008, 
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122 
may, without violating the requirements of section 
409A(a) of the Internal Revenue Code of 1986, be 
amended to conform the date of distribution to the 
date the amounts are required to be included in in-
come. 
(4) CERTAIN BACK-TO-BACK ARRANGEMENTS.— 
If the taxpayer is also a service recipient and main-
tains one or more nonqualified deferred compensa-
tion arrangements for its service providers under 
which any amount is attributable to services per-
formed on or before December 31, 2008, the guid-
ance issued under paragraph (4) shall permit such 
arrangements to be amended to conform the dates of 
distribution under such arrangement to the date 
amounts are required to be included in the income 
of such taxpayer under this subsection. 
(5) ACCELERATED PAYMENT NOT TREATED AS 
MATERIAL
MODIFICATION.—Any amendment to a 
nonqualified deferred compensation arrangement 
made pursuant to paragraph (4) or (5) shall not be 
treated as a material modification of the arrange-
ment for purposes of section 409A of the Internal 
Revenue Code of 1986. 
(6) CERTAIN PREEXISTING ARRANGEMENTS.— 
If, pursuant to a written binding contract entered 
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123 
into on or before December 31, 2007, any portion of 
compensation payable under such contract for a pe-
riod is determined as a portion of the amount of 
gain recognized on the disposition during such pe-
riod of a specified asset, the amendments made by 
this section shall not apply to the portion of com-
pensation attributable to such disposition notwith-
standing the fact that such portion of compensation 
may be reduced by realized losses or depreciation in 
the value of other assets during such period or a 
prior period or be attributable in part to services 
performed after December 31, 2008, but only if— 
(A) payment of such portion of compensa-
tion is received by the service provider and in-
cluded in its gross income no later than the ear-
lier of— 
(i) 12 months after the end of the 
taxable year of the service recipient during 
which the disposition of the specified asset 
occurs, or 
(ii) the last taxable year of the service 
provider beginning before January 1, 
2018; and 
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124 
(B) the specified asset is held by the serv-
ice recipient on the date of the enactment of 
this section. 
SEC. 503. INCREASE AND EXTENSION OF OIL SPILL LIABIL-
ITY TRUST FUND TAX. 
(a) INCREASE IN RATE.— 
(1) INCREASE
IN
RATE.—Section 4611(c) is 
amended by adding at the end the following new 
paragraph: 
‘‘(3) INCREASE IN OIL SPILL LIABILITY TRUST 
FUND FINANCING RATE.—For purposes of this sub-
section, the Oil Spill Liability Trust Fund financing 
rate is increased (in addition to any other increase 
under this subsection) by— 
‘‘(A) in the case of crude oil received or pe-
troleum products entered before October 1, 
2014, 4 cents a barrel, and 
‘‘(B) in the case of crude oil received or 
petroleum products entered after September 30, 
2014, 5 cents a barrel.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply on and after the first 
day of the first calendar quarter beginning more 
than 60 days after the date of the enactment of this 
Act. 
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(b) EXTENSION.— 
(1) IN GENERAL.—Section 4611(f) (relating to 
application of Oil Spill Liability Trust Fund financ-
ing rate) is amended by striking paragraphs (2) and 
(3) and inserting the following new paragraph: 
‘‘(2) TERMINATION.—The Oil Spill Liability 
Trust Fund financing rate shall not apply after De-
cember 31, 2017.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
4611(f)(1) is amended by striking ‘‘paragraphs (2) 
and (3)’’ and inserting ‘‘paragraph (2)’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall take effect on the date of the 
enactment of this Act. 
SEC. 504. DELAY IN APPLICATION OF WORLDWIDE ALLOCA-
TION OF INTEREST. 
(a) IN GENERAL.—Paragraphs (5)(D) and (6) of sec-
tion 864(f) are each amended by striking ‘‘December 31, 
2010’’ and inserting ‘‘December 31, 2018’’. 
(b) TRANSITION.—Subsection (f) of section 864 is 
amended by striking paragraph (7). 
SEC. 505. TIME FOR PAYMENT OF CORPORATE ESTIMATED 
TAXES. 
The percentage under subparagraph (C) of section 
401(1) of the Tax Increase Prevention and Reconciliation 
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Act of 2005 in effect on the date of the enactment of this 
Act is increased by 49 percentage points. 
Æ 
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