511 
AMDT. NO. 98 
(f) OTHER REGULATORY MATTERS.— 
(1) PROHIBITION.—No Federal or State agency 
or instrumentality shall adopt regulations or rate-
making procedures that would have the effect of 
eliminating or reducing any credit or portion thereof 
allowed under section 48D of the Internal Revenue 
Code of 1986 (as added by this section) or otherwise 
subverting the purpose of this section. 
(2) TREASURY REGULATORY AUTHORITY.—It is 
the intent of Congress in providing the broadband 
Internet access credit under section 48D of the In-
ternal Revenue Code of 1986 (as added by this sec-
tion) to provide incentives for the purchase, installa-
tion, and connection of equipment and facilities of-
fering expanded broadband access to the Internet for 
users in certain low income and rural areas of the 
United States, as well as to residential users nation-
wide, in a manner that maintains competitive neu-
trality among the various classes of providers of 
broadband services. Accordingly, the Secretary of 
the Treasury shall prescribe such regulations as may 
be necessary or appropriate to carry out the pur-
poses of section 48D of such Code, including— 
(A) regulations to determine how and when 
a taxpayer that incurs qualified broadband ex-
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AMDT. NO. 98 
penditures satisfies the requirements of section 
48D of such Code to provide broadband serv-
ices, and 
(B) regulations describing the information, 
records, and data taxpayers are required to pro-
vide the Secretary to substantiate compliance 
with the requirements of section 48D of such 
Code. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenditures incurred after De-
cember 31, 2008. 
PART IX—CLARIFICATION OF REGULATIONS RE-
LATED TO LIMITATIONS ON CERTAIN BUILT- 
IN 
LOSSES 
FOLLOWING 
AN 
OWNERSHIP 
CHANGE 
SEC. 1281. CLARIFICATION OF REGULATIONS RELATED TO 
LIMITATIONS ON CERTAIN BUILT-IN LOSSES 
FOLLOWING AN OWNERSHIP CHANGE. 
(a) FINDINGS.—Congress finds as follows: 
(1) The delegation of authority to the Secretary 
of the Treasury under section 382(m) of the Inter-
nal Revenue Code of 1986 does not authorize the 
Secretary to provide exemptions or special rules that 
are restricted to particular industries or classes of 
taxpayers. 
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AMDT. NO. 98 
(2) Internal Revenue Service Notice 2008–83 is 
inconsistent with the congressional intent in enact-
ing such section 382(m). 
(3) The legal authority to prescribe Internal 
Revenue Service Notice 2008–83 is doubtful. 
(4) However, as taxpayers should generally be 
able to rely on guidance issued by the Secretary of 
the Treasury legislation is necessary to clarify the 
force and effect of Internal Revenue Service Notice 
2008–83 and restore the proper application under 
the Internal Revenue Code of 1986 of the limitation 
on built-in losses following an ownership change of 
a bank. 
(b) DETERMINATION OF FORCE AND EFFECT OF IN-
TERNAL REVENUE SERVICE NOTICE 2008–83 EXEMPT-
ING BANKS FROM LIMITATION ON CERTAIN BUILT–IN 
LOSSES FOLLOWING OWNERSHIP CHANGE.— 
(1) IN
GENERAL.—Internal Revenue Service 
Notice 2008–83— 
(A) shall be deemed to have the force and 
effect of law with respect to any ownership 
change (as defined in section 382(g) of the In-
ternal Revenue Code of 1986) occurring on or 
before January 16, 2009, and 
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AMDT. NO. 98 
(B) shall have no force or effect with re-
spect to any ownership change after such date. 
(2) 
BINDING
CONTRACTS.—Notwithstanding 
paragraph (1), Internal Revenue Service Notice 
2008–83 shall have the force and effect of law with 
respect to any ownership change (as so defined) 
which occurs after January 16, 2009, if such 
change— 
(A) is pursuant to a written binding con-
tract entered into on or before such date, or 
(B) is pursuant to a written agreement en-
tered into on or before such date and such 
agreement was described on or before such date 
in a public announcement or in a filing with the 
Securities and Exchange Commission required 
by reason of such ownership change. 
Subtitle D—Manufacturing 
Recovery Provisions 
SEC. 1301. TEMPORARY EXPANSION OF AVAILABILITY OF 
INDUSTRIAL DEVELOPMENT BONDS TO FA-
CILITIES 
MANUFACTURING 
INTANGIBLE 
PROPERTY. 
(a) IN GENERAL.—Subparagraph (C) of section 
144(a)(12) is amended— 
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AMDT. NO. 98 
(1) by striking ‘‘For purposes of this para-
graph, the term’’ and inserting ‘‘For purposes of 
this paragraph— 
‘‘(i) IN GENERAL.—The term’’, and 
(2) by striking the last sentence and inserting 
the following new clauses: 
‘‘(ii) 
CERTAIN
FACILITIES
IN-
CLUDED.—Such term includes facilities 
which are directly related and ancillary to 
a manufacturing facility (determined with-
out regard to this clause) if— 
‘‘(I) such facilities are located on 
the same site as the manufacturing 
facility, and 
‘‘(II) not more than 25 percent 
of the net proceeds of the issue are 
used to provide such facilities. 
‘‘(iii) SPECIAL
RULES
FOR
BONDS 
ISSUED IN 2009 AND 2010.—In the case of 
any issue made after the date of enactment 
of this clause and before January 1, 2011, 
clause (ii) shall not apply and the net pro-
ceeds from a bond shall be considered to 
be used to provide a manufacturing facility 
if such proceeds are used to provide— 
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AMDT. NO. 98 
‘‘(I) a facility which is used in 
the creation or production of intan-
gible property which is described in 
section 197(d)(1)(C)(iii), or 
‘‘(II) a facility which is function-
ally related and subordinate to a man-
ufacturing facility (determined with-
out regard to this subclause) if such 
facility is located on the same site as 
the manufacturing facility.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to bonds issued after the date of 
the enactment of this Act. 
SEC. 1302. CREDIT FOR INVESTMENT IN ADVANCED EN-
ERGY FACILITIES. 
(a) IN GENERAL.—Section 46 (relating to amount of 
credit) is amended by striking ‘‘and’’ at the end of para-
graph (3), by striking the period at the end of paragraph 
(4), and by adding at the end the following new para-
graph: 
‘‘(5) the qualifying advanced energy project 
credit.’’. 
(b) AMOUNT OF CREDIT.—Subpart E of part IV of 
subchapter A of chapter 1 (relating to rules for computing 
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517 
AMDT. NO. 98 
investment credit) is amended by inserting after section 
48B the following new section: 
‘‘SEC. 48C. QUALIFYING ADVANCED ENERGY PROJECT 
CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 46, the 
qualifying advanced energy project credit for any taxable 
year is an amount equal to 30 percent of the qualified 
investment for such taxable year with respect to any quali-
fying advanced energy project of the taxpayer. 
‘‘(b) QUALIFIED INVESTMENT.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the qualified investment for any taxable year is 
the basis of eligible property placed in service by the 
taxpayer during such taxable year which is part of 
a qualifying advanced energy project— 
‘‘(A)(i) the construction, reconstruction, or 
erection of which is completed by the taxpayer 
after October 31, 2008, or 
‘‘(ii) which is acquired by the taxpayer if 
the original use of such eligible property com-
mences with the taxpayer after October 31, 
2008, and 
‘‘(B) with respect to which depreciation (or 
amortization in lieu of depreciation) is allow-
able. 
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518 
AMDT. NO. 98 
‘‘(2) SPECIAL RULE FOR CERTAIN SUBSIDIZED 
PROPERTY.—Rules similar to section 48(a)(4) (with-
out regard to subparagraph (D) thereof) shall apply 
for purposes of this section. 
‘‘(3) CERTAIN QUALIFIED PROGRESS EXPENDI-
TURES RULES MADE APPLICABLE.—Rules similar to 
the rules of subsections (c)(4) and (d) of section 46 
(as in effect on the day before the enactment of the 
Revenue Reconciliation Act of 1990) shall apply for 
purposes of this section. 
‘‘(4) LIMITATION.—The amount which is treat-
ed for all taxable years with respect to any quali-
fying advanced energy project shall not exceed the 
amount designated by the Secretary as eligible for 
the credit under this section. 
‘‘(c) DEFINITIONS.— 
‘‘(1) 
QUALIFYING
ADVANCED
ENERGY 
PROJECT.— 
‘‘(A) IN GENERAL.—The term ‘qualifying 
advanced energy project’ means a project— 
‘‘(i) which re-equips, expands, or es-
tablishes a manufacturing facility for the 
production of property which is— 
‘‘(I) designed to be used to 
produce energy from the sun, wind, 
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519 
AMDT. NO. 98 
geothermal deposits (within the mean-
ing of section 613(e)(2)), or other re-
newable resources, 
‘‘(II) designed to manufacture 
fuel cells, microturbines, or an energy 
storage system for use with electric or 
hybrid-electric motor vehicles, 
‘‘(III) designed to manufacture 
electric grids to support the trans-
mission of intermittent sources of re-
newable energy, 
‘‘(IV) designed to capture and se-
quester carbon dioxide emissions, or 
‘‘(V) designed to refine or blend 
renewable fuels or to produce energy 
conservation technologies (including 
energy-conserving 
lighting 
tech-
nologies and smart grid technologies), 
and 
‘‘(ii) any portion of the qualified in-
vestment of which is certified by the Sec-
retary under subsection (d) as eligible for 
a credit under this section. 
‘‘(B) EXCEPTION.—Such term shall not in-
clude any portion of a project for the produc-
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520 
AMDT. NO. 98 
tion of any property which is used in the refin-
ing or blending of any transportation fuel 
(other than renewable fuels). 
‘‘(2) ELIGIBLE PROPERTY.—The term ‘eligible 
property’ means any property which is part of a 
qualifying advanced energy project and is necessary 
for the production of property described in para-
graph (1)(A)(i). 
‘‘(d) QUALIFYING
ADVANCED
ENERGY
PROJECT 
PROGRAM.— 
‘‘(1) ESTABLISHMENT.— 
‘‘(A) IN
GENERAL.—Not later than 180 
days after the date of enactment of this section, 
the Secretary, in consultation with the Sec-
retary of Energy, shall establish a qualifying 
advanced energy project program to consider 
and award certifications for qualified invest-
ments eligible for credits under this section to 
qualifying advanced energy project sponsors. 
‘‘(B) LIMITATION.—The total amount of 
credits that may be allocated under the pro-
gram shall not exceed $2,000,000,000. 
‘‘(2) CERTIFICATION.— 
‘‘(A) APPLICATION PERIOD.—Each appli-
cant for certification under this paragraph shall 
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521 
AMDT. NO. 98 
submit an application containing such informa-
tion as the Secretary may require during the 3- 
year period beginning on the date the Secretary 
establishes the program under paragraph (1). 
‘‘(B) TIME TO MEET CRITERIA FOR CER-
TIFICATION.—Each applicant for certification 
shall have 2 years from the date of acceptance 
by the Secretary of the application during 
which to provide to the Secretary evidence that 
the requirements of the certification have been 
met. 
‘‘(C) PERIOD OF ISSUANCE.—An applicant 
which receives a certification shall have 5 years 
from the date of issuance of the certification in 
order to place the project in service and if such 
project is not placed in service by that time pe-
riod then the certification shall no longer be 
valid. 
‘‘(3) SELECTION
CRITERIA.—In determining 
which qualifying advanced energy projects to certify 
under this section, the Secretary shall take into con-
sideration only those projects where there is a rea-
sonable expectation of commercial viability. 
‘‘(4) REVIEW AND REDISTRIBUTION.— 
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AMDT. NO. 98 
‘‘(A) REVIEW.—Not later than 6 years 
after the date of enactment of this section, the 
Secretary shall review the credits allocated 
under this section as of the date which is 6 
years after the date of enactment of this sec-
tion. 
‘‘(B) 
REDISTRIBUTION.—The 
Secretary 
may reallocate credits awarded under this sec-
tion if the Secretary determines that— 
‘‘(i) there is an insufficient quantity 
of qualifying applications for certification 
pending at the time of the review, or 
‘‘(ii) any certification made pursuant 
to paragraph (2) has been revoked pursu-
ant to paragraph (2)(B) because the 
project subject to the certification has been 
delayed as a result of third party opposi-
tion or litigation to the proposed project. 
‘‘(C) REALLOCATION.—If the Secretary de-
termines that credits under this section are 
available for reallocation pursuant to the re-
quirements set forth in paragraph (2), the Sec-
retary is authorized to conduct an additional 
program for applications for certification. 
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AMDT. NO. 98 
‘‘(5) DISCLOSURE OF ALLOCATIONS.—The Sec-
retary shall, upon making a certification under this 
subsection, publicly disclose the identity of the appli-
cant and the amount of the credit with respect to 
such applicant. 
‘‘(e) DENIAL OF DOUBLE BENEFIT.—A credit shall 
not be allowed under this section for any qualified invest-
ment for which a credit is allowed under section 48, 48A, 
or 48B.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 49(a)(1)(C) is amended by striking 
‘‘and’’ at the end of clause (iii), by striking the pe-
riod at the end of clause (iv) and inserting ‘‘, and’’, 
and by adding after clause (iv) the following new 
clause: 
‘‘(v) the basis of any property which 
is part of a qualifying advanced energy 
project under section 48C.’’. 
(2) The table of sections for subpart E of part 
IV of subchapter A of chapter 1 is amended by in-
serting after the item relating to section 48B the fol-
lowing new item: 
‘‘48C. Qualifying advanced energy project credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to periods after the date of the 
enactment of this Act, under rules similar to the rules of 
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524 
AMDT. NO. 98 
section 48(m) of the Internal Revenue Code of 1986 (as 
in effect on the day before the date of the enactment of 
the Revenue Reconciliation Act of 1990). 
Subtitle E—Economic Recovery 
Tools 
SEC. 1401. RECOVERY ZONE BONDS. 
(a) IN GENERAL.—Subchapter Y of chapter 1 is 
amended by adding at the end the following new part: 
‘‘PART III—RECOVERY ZONE BONDS 
‘‘Sec. 1400U–1. Allocation of recovery zone bonds. 
‘‘Sec. 1400U–2. Recovery zone economic development bonds. 
‘‘Sec. 1400U–3. Recovery zone facility bonds. 
‘‘SEC. 1400U–1. ALLOCATION OF RECOVERY ZONE BONDS. 
‘‘(a) ALLOCATIONS.— 
‘‘(1) IN GENERAL.—The Secretary shall allo-
cate the national recovery zone economic develop-
ment bond limitation and the national recovery zone 
facility bond limitation among the States— 
‘‘(A) by allocating 1 percent of each such 
limitation to each State, and 
‘‘(B) by allocating the remainder of each 
such limitation among the States in the propor-
tion that each State’s 2008 State employment 
decline bears to the aggregate of the 2008 
State employment declines for all of the States. 
‘‘(2) 2008 STATE EMPLOYMENT DECLINE.—For 
purposes of this subsection, the term ‘2008 State 
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AMDT. NO. 98 
employment decline’ means, with respect to any 
State, the excess (if any) of— 
‘‘(A) the number of individuals employed 
in such State determined for December 2007, 
over 
‘‘(B) the number of individuals employed 
in such State determined for December 2008. 
‘‘(3) ALLOCATIONS BY STATES.— 
‘‘(A) IN GENERAL.—Each State with re-
spect to which an allocation is made under 
paragraph (1) shall reallocate such allocation 
among the counties and large municipalities in 
such State in the proportion the each such 
county’s or municipality’s 2008 employment de-
cline bears to the aggregate of the 2008 em-
ployment declines for all the counties and mu-
nicipalities in such State. 
‘‘(B) LARGE
MUNICIPALITIES.—For pur-
poses of subparagraph (A), the term ‘large mu-
nicipality’ means a municipality with a popu-
lation of more than 100,000. 
‘‘(C) DETERMINATION OF LOCAL EMPLOY-
MENT DECLINES.—For purposes of this para-
graph, the employment decline of any munici-
pality or county shall be determined in the 
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526 
AMDT. NO. 98 
same manner as determining the State employ-
ment decline under paragraph (2), except that 
in the case of a municipality any portion of 
which is in a county, such portion shall be 
treated as part of such municipality and not 
part of such county. 
‘‘(4) NATIONAL LIMITATIONS.— 
‘‘(A) RECOVERY ZONE ECONOMIC DEVEL-
OPMENT BONDS.—There is a national recovery 
zone economic development bond limitation of 
$10,000,000,000. 
‘‘(B) RECOVERY ZONE FACILITY BONDS.— 
There is a national recovery zone facility bond 
limitation of $15,000,000,000. 
‘‘(b) RECOVERY ZONE.—For purposes of this part, 
the term ‘recovery zone’ means— 
‘‘(1) any area designated by the issuer as hav-
ing significant poverty, unemployment, rate of home 
foreclosures, or general distress, and 
‘‘(2) any area for which a designation as an em-
powerment zone or renewal community is in effect. 
‘‘SEC. 1400U–2. RECOVERY ZONE ECONOMIC DEVELOPMENT 
BONDS. 
‘‘(a) IN GENERAL.—In the case of a recovery zone 
economic development bond— 
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AMDT. NO. 98 
‘‘(1) such bond shall be treated as a qualified 
bond for purposes of section 6431, and 
‘‘(2) subsection (b) of such section shall be ap-
plied by substituting ‘40 percent’ for ‘35 percent’. 
‘‘(b) RECOVERY ZONE ECONOMIC DEVELOPMENT 
BOND.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘recovery zone economic development 
bond’ means any build America bond (as defined in 
section 54AA(d)) issued before January 1, 2011, as 
part of issue if— 
‘‘(A) 100 percent of the available project 
proceeds (as defined in section 54A) of such 
issue are to be used for one or more qualified 
economic development purposes, and 
‘‘(B) the issuer designates such bond for 
purposes of this section. 
‘‘(2) LIMITATION ON AMOUNT OF BONDS DES-
IGNATED.—The maximum aggregate face amount of 
bonds which may be designated by any issuer under 
paragraph (1) shall not exceed the amount of the re-
covery zone economic development bond limitation 
allocated to such issuer under section 1400U–1. 
‘‘(c) QUALIFIED ECONOMIC DEVELOPMENT PUR-
POSE.—For purposes of this section, the term ‘qualified 
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AMDT. NO. 98 
economic development purpose’ means expenditures for 
purposes of promoting development or other economic ac-
tivity in a recovery zone, including— 
‘‘(1) capital expenditures paid or incurred with 
respect to property located in such zone, 
‘‘(2) expenditures for public infrastructure and 
construction of public facilities, and 
‘‘(3) expenditures for job training and edu-
cational programs. 
‘‘SEC. 1400U–3. RECOVERY ZONE FACILITY BONDS. 
‘‘(a) IN GENERAL.—For purposes of part IV of sub-
chapter B (relating to tax exemption requirements for 
State and local bonds), the term ‘exempt facility bond’ in-
cludes any recovery zone facility bond. 
‘‘(b) RECOVERY ZONE FACILITY BOND.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘recovery zone facility bond’ means 
any bond issued as part of an issue if— 
‘‘(A) 95 percent or more of the net pro-
ceeds (as defined in section 150(a)(3)) of such 
issue are to be used for recovery zone property, 
‘‘(B) such bond is issued before January 1, 
2011, and 
‘‘(C) the issuer designates such bond for 
purposes of this section. 
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