427 
‘‘(I) any property to which sub-
section (k) (determined without regard 
to paragraph (4)), (l), or (m) applies, 
‘‘(II) any property to which sec-
tion 1400N(d) applies, and 
‘‘(III) any property described in 
section 1400N(p)(3). 
‘‘(ii) 
ALTERNATIVE
DEPRECIATION 
PROPERTY.—The term ‘qualified disaster 
assistance property’ shall not include any 
property to which the alternative deprecia-
tion system under subsection (g) applies, de-
termined without regard to paragraph (7) 
of subsection (g) (relating to election to have 
system apply). 
‘‘(iii) TAX-EXEMPT
BOND
FINANCED 
PROPERTY.—Such term shall not include 
any property any portion of which is fi-
nanced with the proceeds of any obligation 
the interest on which is exempt from tax 
under section 103. 
‘‘(iv) 
QUALIFIED
REVITALIZATION 
BUILDINGS.—Such term shall not include 
any qualified revitalization building with 
respect to which the taxpayer has elected the
428 
application of paragraph (1) or (2) of sec-
tion 1400I(a). 
‘‘(v) ELECTION
OUT.—If a taxpayer 
makes an election under this clause with re-
spect to any class of property for any tax-
able year, this subsection shall not apply to 
all property in such class placed in service 
during such taxable year. 
‘‘(C) SPECIAL RULES.—For purposes of this 
subsection, rules similar to the rules of subpara-
graph (E) of subsection (k)(2) shall apply, except 
that such subparagraph shall be applied— 
‘‘(i) by substituting ‘the applicable dis-
aster date’ for ‘December 31, 2007’ each 
place it appears therein, 
‘‘(ii) without regard to ‘and before 
January 1, 2009’ in clause (i) thereof, and 
‘‘(iii) by substituting ‘qualified dis-
aster assistance property’ for ‘qualified 
property’ in clause (iv) thereof. 
‘‘(D) ALLOWANCE
AGAINST
ALTERNATIVE 
MINIMUM TAX.—For purposes of this subsection, 
rules similar to the rules of subsection (k)(2)(G) 
shall apply.
429 
‘‘(3) OTHER DEFINITIONS.—For purposes of this 
subsection— 
‘‘(A) APPLICABLE
DISASTER
DATE.—The 
term ‘applicable disaster date’ means, with re-
spect to any federally declared disaster, the date 
on which such federally declared disaster occurs. 
‘‘(B) FEDERALLY
DECLARED
DISASTER.— 
The term ‘federally declared disaster’ has the 
meaning 
given 
such 
term 
under 
section 
165(h)(3)(C)(i). 
‘‘(C) DISASTER AREA.—The term ‘disaster 
area’ has the meaning given such term under 
section 165(h)(3)(C)(ii). 
‘‘(D) ELIGIBLE TAXPAYER.—The term ‘eli-
gible taxpayer’ means a taxpayer who has suf-
fered an economic loss attributable to a federally 
declared disaster. 
‘‘(4) RECAPTURE.—For purposes of this sub-
section, rules similar to the rules under section 
179(d)(10) shall apply with respect to any qualified 
disaster assistance property which ceases to be quali-
fied disaster assistance property.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to property placed in service after De-
430 
cember 31, 2007, with respect disasters declared after such 
date. 
SEC. 711. INCREASED EXPENSING FOR QUALIFIED DIS-
ASTER ASSISTANCE PROPERTY. 
(a) IN GENERAL.—Section 179 is amended by adding 
at the end the following new subsection: 
‘‘(e) SPECIAL RULES FOR QUALIFIED DISASTER AS-
SISTANCE PROPERTY.— 
‘‘(1) IN
GENERAL.—For purposes of this sec-
tion— 
‘‘(A) the dollar amount in effect under sub-
section (b)(1) for the taxable year shall be in-
creased by the lesser of— 
‘‘(i) $100,000, or 
‘‘(ii) the cost of qualified section 179 
disaster assistance property placed in serv-
ice during the taxable year, and 
‘‘(B) the dollar amount in effect under sub-
section (b)(2) for the taxable year shall be in-
creased by the lesser of— 
‘‘(i) $600,000, or 
‘‘(ii) the cost of qualified section 179 
disaster assistance property placed in serv-
ice during the taxable year.
431 
‘‘(2) QUALIFIED SECTION 179 DISASTER ASSIST-
ANCE PROPERTY.—For purposes of this subsection, the 
term ‘qualified section 179 disaster assistance prop-
erty’ means section 179 property (as defined in sub-
section (d)) which is qualified disaster assistance 
property (as defined in section 168(n)(2)). 
‘‘(3) COORDINATION WITH EMPOWERMENT ZONES 
AND RENEWAL COMMUNITIES.—For purposes of sec-
tions 1397A and 1400J, qualified section 179 disaster 
assistance property shall not be treated as qualified 
zone property or qualified renewal property, unless 
the taxpayer elects not to take such qualified section 
179 disaster assistance property into account for pur-
poses of this subsection. 
‘‘(4) RECAPTURE.—For purposes of this sub-
section, rules similar to the rules under subsection 
(d)(10) shall apply with respect to any qualified sec-
tion 179 disaster assistance property which ceases to 
be qualified section 179 disaster assistance property.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to property placed in service after De-
cember 31, 2007, with respect disasters declared after such 
date.
432 
SEC. 712. COORDINATION WITH HEARTLAND DISASTER RE-
LIEF. 
The amendments made by this subtitle, other than the 
amendments made by sections 706(a)(2), 710, and 711, 
shall not apply to any disaster described in section 
702(c)(1)(A), or to any expenditure or loss resulting from 
such disaster. 
TITLE VIII—SPENDING REDUC-
TIONS 
AND 
APPROPRIATE 
REVENUE RAISERS FOR NEW 
TAX RELIEF POLICY 
SEC. 801. NONQUALIFIED DEFERRED COMPENSATION FROM 
CERTAIN TAX INDIFFERENT PARTIES. 
(a) IN GENERAL.—Subpart B of part II of subchapter 
E of chapter 1 is amended by inserting after section 457 
the following new section: 
‘‘SEC. 457A. NONQUALIFIED DEFERRED COMPENSATION 
FROM CERTAIN TAX INDIFFERENT PARTIES. 
‘‘(a) IN GENERAL.—Any compensation which is de-
ferred under a nonqualified deferred compensation plan of 
a nonqualified entity shall be includible in gross income 
when there is no substantial risk of forfeiture of the rights 
to such compensation. 
‘‘(b) NONQUALIFIED ENTITY.—For purposes of this 
section, the term ‘nonqualified entity’ means—
433 
‘‘(1) any foreign corporation unless substantially 
all of its income is— 
‘‘(A) effectively connected with the conduct 
of a trade or business in the United States, or 
‘‘(B) subject to a comprehensive foreign in-
come tax, and 
‘‘(2) any partnership unless substantially all of 
its income is allocated to persons other than— 
‘‘(A) foreign persons with respect to whom 
such income is not subject to a comprehensive 
foreign income tax, and 
‘‘(B) organizations which are exempt from 
tax under this title. 
‘‘(c) DETERMINABILITY OF AMOUNTS OF COMPENSA-
TION.— 
‘‘(1) IN GENERAL.—If the amount of any com-
pensation is not determinable at the time that such 
compensation is otherwise includible in gross income 
under subsection (a)— 
‘‘(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—
434 
‘‘(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 in-
cludible 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 a 
substantial risk of forfeiture only if such person’s 
rights to such compensation are conditioned 
upon the future performance of substantial serv-
ices by any individual.
435 
‘‘(B) 
EXCEPTION
FOR
COMPENSATION 
BASED ON GAIN RECOGNIZED ON AN INVESTMENT 
ASSET.— 
‘‘(i) IN GENERAL.—To the extent pro-
vided in regulations prescribed by the Sec-
retary, if compensation is determined solely 
by reference to the amount of gain recog-
nized on the disposition of an investment 
asset, such compensation 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 
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