† HR 3548 EAS 
ual’s continued employment would 
jeopardize the safety of the individual 
or of any member of the individual’s 
immediate family (as defined by the 
Secretary of Labor); and 
‘‘(II) Sexual assault, verified by 
such reasonable and confidential docu-
mentation as the State law may re-
quire, which causes the individual rea-
sonably to believe that such individ-
ual’s continued employment would 
jeopardize the safety of the individual 
or of any member of the individual’s 
immediate family (as defined by the 
Secretary of Labor).’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply with respect to State applications sub-
mitted on and after January 1, 2010. 
SEC. 8. TREATMENT OF ADDITIONAL REGULAR COMPENSA-
TION. 
The monthly equivalent of any additional compensa-
tion paid by reason of section 2002 of the Assistance for 
Unemployed Workers and Struggling Families Act, as con-
tained in Public Law 111–5 (26 U.S.C. 3304 note; 123 
Stat. 438) shall be disregarded after the date of the enact-
† HR 3548 EAS 
ment of this Act in considering the amount of income and 
assets of an individual for purposes of determining such 
individual’s eligibility for, or amount of, benefits under the 
Supplemental Nutrition Assistance Program (SNAP). 
SEC. 9. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS 
UNDER THE RAILROAD UNEMPLOYMENT IN-
SURANCE ACT. 
(a) BENEFITS.—Section 2(c)(2)(D) of the Railroad 
Unemployment Insurance Act, as added by section 2006 of 
the American Recovery and Reinvestment Act of 2009 (Pub-
lic Law 111–5), is amended— 
(1) in clause (iii)— 
(A) by striking ‘‘June 30, 2009’’ and insert-
ing ‘‘June 30, 2010’’; and 
(B) by striking ‘‘December 31, 2009’’ and 
inserting ‘‘December 31, 2010’’; and 
(2) by adding at the end of clause (iv) the fol-
lowing: ‘‘In addition to the amount appropriated by 
the preceding sentence, out of any funds in the Treas-
ury not otherwise appropriated, there are appro-
priated $175,000,000 to cover the cost of additional 
extended unemployment benefits provided under this 
subparagraph, to remain available until expended.’’. 
(b) ADMINISTRATIVE EXPENSES.—Section 2006 of di-
vision B of the American Recovery and Reinvestment Act
† HR 3548 EAS 
of 2009 (Public Law 111–5; 123 Stat. 445) is amended by 
adding at the end of subsection (b) the following: ‘‘In addi-
tion to funds appropriated by the preceding sentence, out 
of any funds in the Treasury not otherwise appropriated, 
there are appropriated to the Railroad Retirement Board 
$807,000 to cover the administrative expenses associated 
with the payment of additional extended unemployment 
benefits under section 2(c)(2)(D) of the Railroad Unemploy-
ment Insurance Act, to remain available until expended.’’. 
SEC. 10. 0.2 PERCENT FUTA SURTAX. 
(a) IN GENERAL.—Section 3301 of the Internal Rev-
enue Code of 1986 (relating to rate of tax) is amended— 
(1) by striking ‘‘through 2009’’ in paragraph (1) 
and inserting ‘‘through 2010 and the first 6 months 
of calendar year 2011’’, 
(2) by striking ‘‘calendar year 2010’’ in para-
graph (2) and inserting ‘‘the remainder of calendar 
year 2011’’, and 
(3) by inserting ‘‘(or portion of the calendar 
year)’’ after ‘‘during the calendar year’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to wages paid after December 31, 2009. 
SEC. 11. EXTENSION AND MODIFICATION OF FIRST-TIME 
HOMEBUYER TAX CREDIT. 
(a) EXTENSION OF APPLICATION PERIOD.—
† HR 3548 EAS 
(1) IN GENERAL.—Subsection (h) of section 36 of 
the Internal Revenue Code of 1986 is amended— 
(A) by striking ‘‘December 1, 2009’’ and in-
serting ‘‘May 1, 2010’’, 
(B) by striking ‘‘SECTION.—This section’’ 
and inserting ‘‘SECTION.— 
‘‘(1) IN GENERAL.—This section’’, and 
(C) by adding at the end the following new 
paragraph: 
‘‘(2) EXCEPTION
IN
CASE
OF
BINDING
CON-
TRACT.—In the case of any taxpayer who enters into 
a written binding contract before May 1, 2010, to 
close on the purchase of a principal residence before 
July 1, 2010, paragraph (1) shall be applied by sub-
stituting ‘July 1, 2010’ for ‘May 1, 2010’.’’. 
(2) WAIVER OF RECAPTURE.— 
(A) IN
GENERAL.—Subparagraph (D) of 
section 36(f)(4) of such Code is amended by 
striking ‘‘, and before December 1, 2009’’. 
(B) CONFORMING AMENDMENT.—The head-
ing of such subparagraph (D) is amended by in-
serting ‘‘AND 2010’’ after ‘‘2009’’. 
(3) ELECTION TO TREAT PURCHASE IN PRIOR 
YEAR.—Subsection (g) of section 36 of such Code is 
amended to read as follows:
† HR 3548 EAS 
‘‘(g) ELECTION TO TREAT PURCHASE
IN PRIOR 
YEAR.—In the case of a purchase of a principal residence 
after December 31, 2008, a taxpayer may elect to treat such 
purchase as made on December 31 of the calendar year pre-
ceding such purchase for purposes of this section (other than 
subsections (c), (f)(4)(D), and (h)).’’. 
(b) SPECIAL RULE FOR LONG-TIME RESIDENTS OF 
SAME PRINCIPAL RESIDENCE.—Subsection (c) of section 36 
of the Internal Revenue Code of 1986 is amended by adding 
at the end the following new paragraph: 
‘‘(6) EXCEPTION FOR LONG-TIME RESIDENTS OF 
SAME PRINCIPAL RESIDENCE.—In the case of an indi-
vidual (and, if married, such individual’s spouse) 
who has owned and used the same residence as such 
individual’s principal residence for any 5-consecutive- 
year period during the 8-year period ending on the 
date of the purchase of a subsequent principal resi-
dence, such individual shall be treated as a first-time 
homebuyer for purposes of this section with respect to 
the purchase of such subsequent residence.’’. 
(c) MODIFICATION OF DOLLAR AND INCOME LIMITA-
TIONS.— 
(1) DOLLAR LIMITATION.—Subsection (b)(1) of 
section 36 of the Internal Revenue Code of 1986 is
† HR 3548 EAS 
amended by adding at the end the following new sub-
paragraph: 
‘‘(D) SPECIAL RULE FOR LONG-TIME RESI-
DENTS OF SAME PRINCIPAL RESIDENCE.—In the 
case of a taxpayer to whom a credit under sub-
section (a) is allowed by reason of subsection 
(c)(6), subparagraphs (A), (B), and (C) shall be 
applied by substituting ‘$6,500’ for ‘$8,000’ and 
‘$3,250’ for ‘$4,000’.’’. 
(2) 
INCOME
LIMITATION.—Subsection 
(b)(2)(A)(i)(II) of section 36 of such Code is amended 
by striking ‘‘$75,000 ($150,000’’ and inserting 
‘‘$125,000 ($225,000’’. 
(d) LIMITATION
ON PURCHASE PRICE
OF RESI-
DENCE.—Subsection (b) of section 36 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new paragraph: 
‘‘(3) LIMITATION BASED ON PURCHASE PRICE.— 
No credit shall be allowed under subsection (a) for the 
purchase of any residence if the purchase price of 
such residence exceeds $800,000.’’. 
(e) WAIVER OF RECAPTURE OF FIRST-TIME HOME-
BUYER CREDIT FOR INDIVIDUALS ON QUALIFIED OFFICIAL 
EXTENDED DUTY.—Paragraph (4) of section 36(f) of the
† HR 3548 EAS 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new subparagraph: 
‘‘(E) SPECIAL RULE FOR MEMBERS OF THE 
ARMED FORCES, ETC.— 
‘‘(i) IN GENERAL.—In the case of the 
disposition of a principal residence by an 
individual (or a cessation referred to in 
paragraph (2)) after December 31, 2008, in 
connection with Government orders received 
by such individual, or such individual’s 
spouse, for qualified official extended duty 
service— 
‘‘(I) paragraph (2) and subsection 
(d)(2) shall not apply to such disposi-
tion (or cessation), and 
‘‘(II) if such residence was ac-
quired before January 1, 2009, para-
graph (1) shall not apply to the tax-
able year in which such disposition (or 
cessation) occurs or any subsequent 
taxable year. 
‘‘(ii) QUALIFIED OFFICIAL EXTENDED 
DUTY SERVICE.—For purposes of this sec-
tion, the term ‘qualified official extended
† HR 3548 EAS 
duty service’ means service on qualified offi-
cial extended duty as— 
‘‘(I) a member of the uniformed 
services, 
‘‘(II) a member of the Foreign 
Service of the United States, or 
‘‘(III) an employee of the intel-
ligence community. 
‘‘(iii) DEFINITIONS.—Any term used 
in this subparagraph which is also used in 
paragraph (9) of section 121(d) shall have 
the same meaning as when used in such 
paragraph.’’. 
(f) EXTENSION OF FIRST-TIME HOMEBUYER CREDIT 
FOR INDIVIDUALS
ON QUALIFIED OFFICIAL EXTENDED 
DUTY OUTSIDE THE UNITED STATES.— 
(1) IN GENERAL.—Subsection (h) of section 36 of 
the Internal Revenue Code of 1986, as amended by 
subsection (a), is amended by adding at the end the 
following: 
‘‘(3) SPECIAL RULE FOR INDIVIDUALS ON QUALI-
FIED
OFFICIAL
EXTENDED
DUTY
OUTSIDE
THE 
UNITED STATES.—In the case of any individual who 
serves on qualified official extended duty service (as 
defined in section 121(d)(9)(C)(i)) outside the United
† HR 3548 EAS 
States for at least 90 days during the period begin-
ning after December 31, 2008, and ending before May 
1, 2010, and, if married, such individual’s spouse— 
‘‘(A) paragraphs (1) and (2) shall each be 
applied by substituting ‘May 1, 2011’ for ‘May 
1, 2010’, and 
‘‘(B) paragraph (2) shall be applied by sub-
stituting ‘July 1, 2011’ for ‘July 1, 2010’.’’. 
(g) DEPENDENTS INELIGIBLE
FOR CREDIT.—Sub-
section (d) of section 36 of the Internal Revenue Code of 
1986 is amended by striking ‘‘or’’ at the end of paragraph 
(1), by striking the period at the end of paragraph (2) and 
inserting ‘‘, or’’, and by adding at the end the following 
new paragraph: 
‘‘(3) a deduction under section 151 with respect 
to such taxpayer is allowable to another taxpayer for 
such taxable year.’’. 
(h) IRS MATHEMATICAL ERROR AUTHORITY.—Para-
graph (2) of section 6213(g) of the Internal Revenue Code 
of 1986 is amended— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (M), 
(2) by striking the period at the end of subpara-
graph (N) and inserting ‘‘, and’’, and
† HR 3548 EAS 
(3) by inserting after subparagraph (N) the fol-
lowing new subparagraph: 
‘‘(O) an omission of any increase required 
under section 36(f) with respect to the recapture 
of a credit allowed under section 36.’’. 
(i) COORDINATION WITH FIRST-TIME HOMEBUYER 
CREDIT FOR DISTRICT OF COLUMBIA.—Paragraph (4) of 
section 1400C(e) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘and before December 1, 2009,’’. 
(j) EFFECTIVE DATES.— 
(1) IN
GENERAL.—The amendments made by 
subsections (b), (c), (d), and (g) shall apply to resi-
dences purchased after the date of the enactment of 
this Act. 
(2) EXTENSIONS.—The amendments made by 
subsections (a), (f), and (i) shall apply to residences 
purchased after November 30, 2009. 
(3) WAIVER OF RECAPTURE.—The amendment 
made by subsection (e) shall apply to dispositions and 
cessations after December 31, 2008. 
(4) MATHEMATICAL
ERROR
AUTHORITY.—The 
amendments made by subsection (h) shall apply to re-
turns for taxable years ending on or after April 9, 
2008.
† HR 3548 EAS 
SEC. 12. PROVISIONS TO ENHANCE THE ADMINISTRATION 
OF THE FIRST-TIME HOMEBUYER TAX CRED-
IT. 
(a) AGE LIMITATION.— 
(1) IN GENERAL.—Subsection (b) of section 36 of 
the Internal Revenue Code of 1986, as amended by 
this Act, is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(4) AGE LIMITATION.—No credit shall be al-
lowed under subsection (a) with respect to the pur-
chase of any residence unless the taxpayer has at-
tained age 18 as of the date of such purchase. In the 
case of any taxpayer who is married (within the 
meaning of section 7703), the taxpayer shall be treat-
ed as meeting the age requirement of the preceding 
sentence if the taxpayer or the taxpayer’s spouse 
meets such age requirement.’’. 
(2) CONFORMING
AMENDMENT.—Subsection (g) 
of section 36 of such Code, as amended by this Act, 
is amended by inserting ‘‘(b)(4),’’ before ‘‘(c)’’. 
(b) DOCUMENTATION REQUIREMENT.—Subsection (d) 
of section 36 of the Internal Revenue Code of 1986, as 
amended by this Act, is amended by striking ‘‘or’’ at the 
end of paragraph (2), by striking the period at the end of 
paragraph (3) and inserting ‘‘, or’’, and by adding at the 
end the following new paragraph:
† HR 3548 EAS 
‘‘(4) the taxpayer fails to attach to the return of 
tax for such taxable year a properly executed copy of 
the settlement statement used to complete such pur-
chase.’’. 
(c) RESTRICTION ON MARRIED INDIVIDUAL ACQUIRING 
RESIDENCE FROM FAMILY OF SPOUSE.—Clause (i) of sec-
tion 36(c)(3)(A) of the Internal Revenue Code of 1986 is 
amended by inserting ‘‘(or, if married, such individual’s 
spouse)’’ after ‘‘person acquiring such property’’. 
(d) CERTAIN ERRORS WITH RESPECT TO THE FIRST- 
TIME HOMEBUYER TAX CREDIT TREATED
AS MATHE-
MATICAL OR CLERICAL ERRORS.—Paragraph (2) of section 
6213(g) the Internal Revenue Code of 1986, as amended by 
this Act, is amended by striking ‘‘and’’ at the end of sub-
paragraph (N), by striking the period at the end of subpara-
graph (O) and inserting ‘‘, and’’, and by inserting after 
subparagraph (O) the following new subparagraph: 
‘‘(P) an entry on a return claiming the 
credit under section 36 if— 
‘‘(i) the Secretary obtains information 
from the person issuing the TIN of the tax-
payer that indicates that the taxpayer does 
not meet the age requirement of section 
36(b)(4),
† HR 3548 EAS 
‘‘(ii) information provided to the Sec-
retary by the taxpayer on an income tax re-
turn for at least one of the 2 preceding tax-
able years is inconsistent with eligibility for 
such credit, or 
‘‘(iii) the taxpayer fails to attach to 
the return the form described in section 
36(d)(4).’’. 
(e) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as otherwise provided 
in this subsection, the amendments made by this sec-
tion shall apply to purchases after the date of the en-
actment of this Act. 
(2) 
DOCUMENTATION
REQUIREMENT.—The 
amendments made by subsection (b) shall apply to re-
turns for taxable years ending after the date of the en-
actment of this Act. 
(3) TREATMENT AS MATHEMATICAL AND CLER-
ICAL ERRORS.—The amendments made by subsection 
(d) shall apply to returns for taxable years ending on 
or after April 9, 2008. 
SEC. 13. 5-YEAR CARRYBACK OF OPERATING LOSSES. 
(a) IN
GENERAL.—Subparagraph (H) of section 
172(b)(1) of the Internal Revenue Code of 1986 is amended 
to read as follows:
† HR 3548 EAS 
‘‘(H) CARRYBACK FOR 2008 OR 2009 NET OP-
ERATING LOSSES.— 
‘‘(i) IN GENERAL.—In the case of an 
applicable net operating loss with respect to 
which the taxpayer has elected the applica-
tion of this subparagraph— 
‘‘(I) subparagraph (A)(i) shall be 
applied by substituting any whole 
number elected by the taxpayer which 
is more than 2 and less than 6 for ‘2’, 
‘‘(II) subparagraph (E)(ii) shall 
be applied by substituting the whole 
number which is one less than the 
whole number substituted under sub-
clause (I) for ‘2’, and 
‘‘(III) subparagraph (F) shall not 
apply. 
‘‘(ii) APPLICABLE
NET
OPERATING 
LOSS.—For purposes of this subparagraph, 
the term ‘applicable net operating loss’ 
means the taxpayer’s net operating loss for 
a taxable year ending after December 31, 
2007, and beginning before January 1, 
2010. 
‘‘(iii) ELECTION.—
† HR 3548 EAS 
‘‘(I) IN
GENERAL.—Any election 
under this subparagraph may be made 
only with respect to 1 taxable year. 
‘‘(II) PROCEDURE.—Any election 
under this subparagraph shall be made 
in such manner as may be prescribed 
by the Secretary, and shall be made by 
the due date (including extension of 
time) for filing the return for the tax-
payer’s last taxable year beginning in 
2009. Any such election, once made, 
shall be irrevocable. 
‘‘(iv) LIMITATION ON AMOUNT OF LOSS 
CARRYBACK
TO
5TH
PRECEDING
TAXABLE 
YEAR.— 
‘‘(I) IN GENERAL.—The amount of 
any net operating loss which may be 
carried back to the 5th taxable year 
preceding the taxable year of such loss 
under clause (i) shall not exceed 50 
percent of the taxpayer’s taxable in-
come (computed without regard to the 
net operating loss for the loss year or 
any taxable year thereafter) for such 
preceding taxable year.
† HR 3548 EAS 
‘‘(II) 
CARRYBACKS
AND 
CARRYOVERS
TO
OTHER
TAXABLE 
YEARS.—Appropriate adjustments in 
the application of the second sentence 
of paragraph (2) shall be made to take 
into account the limitation of subclause 
(I). 
‘‘(III) EXCEPTION FOR 2008 ELEC-
TIONS
BY
SMALL
BUSINESSES.—Sub-
clause (I) shall not apply to any loss 
of an eligible small business with re-
spect to any election made under this 
subparagraph as in effect on the day 
before the date of the enactment of the 
Worker, Homeownership, and Business 
Assistance Act of 2009. 
‘‘(v) SPECIAL RULES FOR SMALL BUSI-
NESS.— 
‘‘(I) IN GENERAL.—In the case of 
an eligible small business which made 
or makes an election under this sub-
paragraph as in effect on the day be-
fore the date of the enactment of the 
Worker, Homeownership, and Business 
Assistance Act of 2009, clause (iii)(I)
† HR 3548 EAS 
shall be applied by substituting ‘2 tax-
able years’ for ‘1 taxable year’. 
‘‘(II) 
ELIGIBLE
SMALL
BUSI-
NESS.—For purposes of this subpara-
graph, the term ‘eligible small business’ 
has the meaning given such term by 
subparagraph (F)(iii), except that in 
applying such subparagraph, section 
448(c) shall be applied by substituting 
‘$15,000,000’ for ‘$5,000,000’ each 
place it appears.’’. 
(b) ALTERNATIVE TAX NET OPERATING LOSS DEDUC-
TION.—Subclause (I) of section 56(d)(1)(A)(ii) of the Inter-
nal Revenue Code of 1986 is amended to read as follows: 
‘‘(I) the amount of such deduction 
attributable to an applicable net oper-
ating loss with respect to which an 
election 
is 
made 
under 
section 
172(b)(1)(H), or’’. 
(c) LOSS FROM OPERATIONS
OF LIFE INSURANCE 
COMPANIES.—Subsection (b) of section 810 of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new paragraph: 
‘‘(4) CARRYBACK FOR 2008 OR 2009 LOSSES.—
† HR 3548 EAS 
‘‘(A) IN GENERAL.—In the case of an appli-
cable loss from operations with respect to which 
the taxpayer has elected the application of this 
paragraph, paragraph (1)(A) shall be applied by 
substituting any whole number elected by the 
taxpayer which is more than 3 and less than 6 
for ‘3’. 
‘‘(B) 
APPLICABLE
LOSS
FROM
OPER-
ATIONS.—For purposes of this paragraph, the 
term ‘applicable loss from operations’ means the 
taxpayer’s loss from operations for a taxable 
year ending after December 31, 2007, and begin-
ning before January 1, 2010. 
‘‘(C) ELECTION.— 
‘‘(i) IN GENERAL.—Any election under 
this paragraph may be made only with re-
spect to 1 taxable year. 
‘‘(ii) 
PROCEDURE.—Any 
election 
under this paragraph shall be made in such 
manner as may be prescribed by the Sec-
retary, and shall be made by the due date 
(including extension of time) for filing the 
return for the taxpayer’s last taxable year 
beginning in 2009. Any such election, once 
made, shall be irrevocable.
† HR 3548 EAS 
‘‘(D) LIMITATION
ON
AMOUNT
OF
LOSS 
CARRYBACK
TO
5TH
PRECEDING
TAXABLE 
YEAR.— 
‘‘(i) IN GENERAL.—The amount of any 
loss from operations which may be carried 
back to the 5th taxable year preceding the 
taxable year of such loss under subpara-
graph (A) shall not exceed 50 percent of the 
taxpayer’s taxable income (computed with-
out regard to the loss from operations for 
the loss year or any taxable year thereafter) 
for such preceding taxable year. 
‘‘(ii) CARRYBACKS
AND
CARRYOVERS 
TO
OTHER
TAXABLE
YEARS.—Appropriate 
adjustments in the application of the second 
sentence of paragraph (2) shall be made to 
take into account the limitation of clause 
(i).’’. 
(d) ANTI-ABUSE RULES.—The Secretary of Treasury 
or the Secretary’s designee shall prescribe such rules as are 
necessary to prevent the abuse of the purposes of the amend-
ments made by this section, including anti-stuffing rules, 
anti-churning rules (including rules relating to sale-lease-
backs), and rules similar to the rules under section 1091
† HR 3548 EAS 
of the Internal Revenue Code of 1986 relating to losses from 
wash sales. 
(e) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as otherwise provided 
in this subsection, the amendments made by this sec-
tion shall apply to net operating losses arising in tax-
able years ending after December 31, 2007. 
(2) ALTERNATIVE TAX NET OPERATING LOSS DE-
DUCTION.—The amendment made by subsection (b) 
shall apply to taxable years ending after December 
31, 2002. 
(3) LOSS FROM OPERATIONS OF LIFE INSURANCE 
COMPANIES.—The amendment made by subsection (d) 
shall apply to losses from operations arising in tax-
able years ending after December 31, 2007. 
(4) TRANSITIONAL RULE.—In the case of any net 
operating loss (or, in the case of a life insurance com-
pany, any loss from operations) for a taxable year 
ending before the date of the enactment of this Act— 
(A) any election made under section 
172(b)(3) or 810(b)(3) of the Internal Revenue 
Code of 1986 with respect to such loss may (not-
withstanding such section) be revoked before the 
due date (including extension of time) for filing
† HR 3548 EAS 
the return for the taxpayer’s last taxable year be-
ginning in 2009, and 
(B) any application under section 6411(a) 
of such Code with respect to such loss shall be 
treated as timely filed if filed before such due 
date. 
(f) EXCEPTION FOR TARP RECIPIENTS.—The amend-
ments made by this section shall not apply to— 
(1) any taxpayer if— 
(A) the Federal Government acquired before 
the date of the enactment of this Act an equity 
interest in the taxpayer pursuant to the Emer-
gency Economic Stabilization Act of 2008, 
(B) the Federal Government acquired before 
such date of enactment any warrant (or other 
right) to acquire any equity interest with respect 
to the taxpayer pursuant to the Emergency Eco-
nomic Stabilization Act of 2008, or 
(C) such taxpayer receives after such date of 
enactment funds from the Federal Government in 
exchange for an interest described in subpara-
graph (A) or (B) pursuant to a program estab-
lished under title I of division A of the Emer-
gency Economic Stabilization Act of 2008 (un-
less such taxpayer is a financial institution (as
† HR 3548 EAS 
defined in section 3 of such Act) and the funds 
are received pursuant to a program established 
by the Secretary of the Treasury for the stated 
purpose of increasing the availability of credit to 
small businesses using funding made available 
under such Act), or 
(2) the Federal National Mortgage Association 
and the Federal Home Loan Mortgage Corporation, 
and 
(3) any taxpayer which at any time in 2008 or 
2009 was or is a member of the same affiliated group 
(as defined in section 1504 of the Internal Revenue 
Code of 1986, determined without regard to subsection 
(b) thereof) as a taxpayer described in paragraph (1) 
or (2). 
SEC. 14. EXCLUSION FROM GROSS INCOME OF QUALIFIED 
MILITARY BASE REALIGNMENT AND CLOSURE 
FRINGE. 
(a) IN GENERAL.—Subsection (n) of section 132 of the 
Internal Revenue Code of 1986 is amended— 
(1) in subparagraph (1) by striking ‘‘this sub-
section) to offset the adverse effects on housing values 
as a result of a military base realignment or closure’’ 
and inserting ‘‘the American Recovery and Reinvest-
ment Tax Act of 2009)’’, and
† HR 3548 EAS 
(2) in subparagraph (2) by striking ‘‘clause (1) 
of’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
act shall apply to payments made after February 17, 2009. 
SEC. 15. DELAY IN APPLICATION OF WORLDWIDE ALLOCA-
TION OF INTEREST. 
(a) IN GENERAL.—Paragraphs (5)(D) and (6) of sec-
tion 864(f) of the Internal Revenue Code of 1986 are each 
amended by striking ‘‘December 31, 2010’’ and inserting 
‘‘December 31, 2017’’. 
(b) CONFORMING AMENDMENT.—Section 864(f) of the 
Internal Revenue Code of 1986 is amended by striking 
paragraph (7). 
(c) EFFECTIVE DATES.—The amendments made by 
this section shall apply to taxable years beginning after De-
cember 31, 2010. 
SEC. 16. INCREASE IN PENALTY FOR FAILURE TO FILE A 
PARTNERSHIP OR S CORPORATION RETURN. 
(a) IN GENERAL.—Sections 6698(b)(1) and 6699(b)(1) 
of the Internal Revenue Code of 1986 are each amended by 
striking ‘‘$89’’ and inserting ‘‘$195’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to returns for taxable years beginning 
after December 31, 2009.
† HR 3548 EAS 
SEC. 17. CERTAIN TAX RETURN PREPARERS REQUIRED TO 
FILE RETURNS ELECTRONICALLY. 
(a) IN GENERAL.—Subsection (e) of section 6011 of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new paragraph: 
‘‘(3) SPECIAL
RULE
FOR
TAX
RETURN
PRE-
PARERS.— 
‘‘(A) IN GENERAL.—The Secretary shall re-
quire than any individual income tax return 
prepared by a tax return preparer be filed on 
magnetic media if— 
‘‘(i) such return is filed by such tax re-
turn preparer, and 
‘‘(ii) such tax return preparer is a 
specified tax return preparer for the cal-
endar year during which such return is 
filed. 
‘‘(B) SPECIFIED TAX RETURN PREPARER.— 
For purposes of this paragraph, the term ‘speci-
fied tax return preparer’ means, with respect to 
any calendar year, any tax return preparer un-
less such preparer reasonably expects to file 10 or 
fewer individual income tax returns during such 
calendar year. 
‘‘(C) INDIVIDUAL INCOME TAX RETURN.— 
For purposes of this paragraph, the term ‘indi-