430 
AMDT. NO. 98 
(c) If the head of a Federal department or agency 
determines that it is necessary to waive the application 
of subsection (a) based on a finding under subsection (b), 
the head of the department or agency shall publish in the 
Federal Register a detailed written jurisdiction as to why 
the provision is being waived. 
(d) In this section, the terms ‘‘public building’’ and 
‘‘public work’’ have the meanings given such terms in sec-
tion 1 of the Buy American Act (41 U.S.C. 10c) and in-
clude airports, bridges, canals, dams, dikes, pipelines, rail-
roads, multiline mass transit systems, roads, tunnels, har-
bors, and piers. 
CERTIFICATION 
SEC. 1605. With respect to funds in titles I though 
XVI of this Act made available to State, or local govern-
ment agencies, the Governor, mayor, or other chief execu-
tive, as appropriate, shall certify that the infrastructure 
investment has received the full review and vetting re-
quired by law and that the chief executive accepts respon-
sibility that the infrastructure investment is an appro-
priate use of taxpayer dollars. A State or local agency may 
not receive infrastructure investment funding from funds 
made available in this Act unless this certification is made. 
ECONOMIC STABILIZATION CONTRACTING 
SEC. 1606. REFORM OF CONTRACTING PROCEDURES 
UNDER EESA. Section 107(b) of the Emergency Eco-
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00430
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
431 
AMDT. NO. 98 
nomic Stabilization Act of 2008 (12 U.S.C. 5217(b)) is 
amended by inserting ‘‘and individuals with disabilities 
and businesses owned by individuals with disabilities (for 
purposes of this subsection the term ‘individual with dis-
ability’ has the same meaning as the term ‘handicapped 
individual’ as that term is defined in section 3(f) of the 
Small Business Act (15 U.S.C. 632(f)),’’ after ‘‘(12 
U.S.C. 1441a(r)(4)),’’. 
DIVISION 
B—TAX, 
UNEMPLOY-
MENT, HEALTH, STATE FIS-
CAL 
RELIEF, 
AND 
OTHER 
PROVISIONS 
TITLE I—TAX PROVISIONS 
SEC. 1000. SHORT TITLE, ETC. 
(a) SHORT TITLE.—This title may be cited as the 
‘‘American Recovery and Reinvestment Tax Act of 2009’’. 
(b) REFERENCE.—Except as otherwise expressly pro-
vided, whenever in this title an amendment or repeal is 
expressed in terms of an amendment to, or repeal of, a 
section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the In-
ternal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents for 
this title is as follows: 
TITLE I—TAX PROVISIONS 
Sec. 1000. Short title, etc. 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00431
Fmt 6654
Sfmt 6211
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
432 
AMDT. NO. 98 
Subtitle A—Tax Relief for Individuals and Families 
PART I—GENERAL TAX RELIEF 
Sec. 1001. Making work pay credit. 
Sec. 1002. Temporary increase in earned income tax credit. 
Sec. 1003. Temporary increase of refundable portion of child credit. 
Sec. 1004. American opportunity tax credit. 
Sec. 1005. Computer technology and equipment allowed as a qualified higher 
education expense for section 529 accounts in 2009 and 2010. 
Sec. 1006. Extension of first-time homebuyer credit; waiver of requirement to 
repay. 
Sec. 1007. Suspension of tax on portion of unemployment compensation. 
PART II—ALTERNATIVE MINIMUM TAX RELIEF 
Sec. 1011. Extension of alternative minimum tax relief for nonrefundable per-
sonal credits. 
Sec. 1012. Extension of increased alternative minimum tax exemption amount. 
Subtitle B—Energy Incentives 
PART I—RENEWABLE ENERGY INCENTIVES 
Sec. 1101. Extension of credit for electricity produced from certain renewable 
resources. 
Sec. 1102. Election of investment credit in lieu of production credit. 
Sec. 1103. Repeal of certain limitations on credit for renewable energy prop-
erty. 
PART II—INCREASED ALLOCATIONS OF NEW CLEAN RENEWABLE ENERGY 
BONDS AND QUALIFIED ENERGY CONSERVATION BONDS 
Sec. 1111. Increased limitation on issuance of new clean renewable energy 
bonds. 
Sec. 1112. Increased limitation on issuance of qualified energy conservation 
bonds. 
PART III—ENERGY CONSERVATION INCENTIVES 
Sec. 1121. Extension and modification of credit for nonbusiness energy prop-
erty. 
Sec. 1122. Modification of credit for residential energy efficient property. 
Sec. 1123. Temporary increase in credit for alternative fuel vehicle refueling 
property. 
PART IV—ENERGY RESEARCH INCENTIVES 
Sec. 1131. Increased research credit for energy research. 
PART V—GENERAL BUSINESS CREDIT 
Sec. 1141. 5-year carryback of general business credits. 
Sec. 1142. Temporary provision allowing general business credits to offset 100 
percent of Federal income tax liability. 
PART VI—MODIFICATION OF CREDIT FOR CARBON DIOXIDE 
SEQUESTRATION 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00432
Fmt 6654
Sfmt 6211
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
433 
AMDT. NO. 98 
Sec. 1151. Application of monitoring requirements to carbon dioxide used as a 
tertiary injectant. 
PART VII—PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES 
Sec. 1161. Modification of credit for qualified plug-in electric motor vehicles. 
Subtitle C—Tax Incentives for Business 
PART I—TEMPORARY INVESTMENT INCENTIVES 
Sec. 1201. Special allowance for certain property acquired during 2009. 
Sec. 1202. Temporary increase in limitations on expensing of certain depre-
ciable business assets. 
PART II—5-YEAR CARRYBACK OF OPERATING LOSSES 
Sec. 1211. 5-year carryback of operating losses. 
Sec. 1212. Exception for TARP recipients. 
PART III—INCENTIVES FOR NEW JOBS 
Sec. 1221. Incentives to hire unemployed veterans and disconnected youth. 
PART IV—CANCELLATION OF INDEBTEDNESS 
Sec. 1231. Deferral and ratable inclusion of income arising from indebtedness 
discharged by the repurchase of a debt instrument. 
PART V—QUALIFIED SMALL BUSINESS STOCK 
Sec. 1241. Special rules applicable to qualified small business stock for 2009 
and 2010. 
PART VI—PARITY FOR TRANSPORTATION FRINGE BENEFITS 
Sec. 1251. Increased exclusion amount for commuter transit benefits and tran-
sit passes. 
PART VII—S CORPORATIONS 
Sec. 1261. Temporary reduction in recognition period for built-in gains tax. 
PART VIII—BROADBAND INCENTIVES 
Sec. 1271. Broadband Internet access tax credit. 
PART IX—CLARIFICATION OF REGULATIONS RELATED 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. 
Subtitle D—Manufacturing Recovery Provisions 
Sec. 1301. Temporary expansion of availability of industrial development bonds 
to facilities manufacturing intangible property. 
Sec. 1302. Credit for investment in advanced energy facilities. 
Subtitle E—Economic Recovery Tools 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00433
Fmt 6654
Sfmt 6211
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
434 
AMDT. NO. 98 
Sec. 1401. Recovery zone bonds. 
Sec. 1402. Tribal economic development bonds. 
Sec. 1403. Modifications to new markets tax credit. 
Subtitle F—Infrastructure Financing Tools 
PART I—IMPROVED MARKETABILITY FOR TAX-EXEMPT BONDS 
Sec. 1501. De minimis safe harbor exception for tax-exempt interest expense of 
financial institutions. 
Sec. 1502. Modification of small issuer exception to tax-exempt interest expense 
allocation rules for financial institutions. 
Sec. 1503. Temporary modification of alternative minimum tax limitations on 
tax-exempt bonds. 
Sec. 1504. Modification to high speed intercity rail facility bonds. 
PART II—DELAY IN APPLICATION OF WITHHOLDING TAX ON GOVERNMENT 
CONTRACTORS 
Sec. 1511. Delay in application of withholding tax on government contractors. 
PART III—TAX CREDIT BONDS FOR SCHOOLS 
Sec. 1521. Qualified school construction bonds. 
Sec. 1522. Extension and expansion of qualified zone academy bonds. 
PART IV—BUILD AMERICA BONDS 
Sec. 1531. Build America bonds. 
Subtitle G—Economic Recovery Payments to Certain Individuals 
Sec. 1601. Economic recovery payment to recipients of Social Security, supple-
mental security income, railroad retirement benefits, and vet-
erans disability compensation or pension benefits. 
Subtitle H—Trade Adjustment Assistance 
Sec. 1701. Temporary extension of Trade Adjustment Assistance program. 
Subtitle I—Prohibition on Collection of Certain Payments Made Under the 
Continued Dumping and Subsidy Offset Act of 2000 
Sec. 1801. Prohibition on collection of certain payments made under the Con-
tinued Dumping and Subsidy Offset Act of 2000. 
Subtitle J—Other Provisions 
Sec. 1901. Application of certain labor standards to projects financed with cer-
tain tax-favored bonds. 
Sec. 1902. Increase in public debt limit. 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00434
Fmt 6654
Sfmt 6211
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
435 
AMDT. NO. 98 
Subtitle A—Tax Relief for 
Individuals and Families 
PART I—GENERAL TAX RELIEF 
SEC. 1001. MAKING WORK PAY CREDIT. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 is amended by inserting after sec-
tion 36 the following new section: 
‘‘SEC. 36A. MAKING WORK PAY CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli-
gible individual, there shall be allowed as a credit against 
the tax imposed by this subtitle for the taxable year an 
amount equal to the lesser of— 
‘‘(1) 6.2 percent of earned income of the tax-
payer, or 
‘‘(2) $500 ($1,000 in the case of a joint re-
turn). 
‘‘(b) LIMITATION BASED ON MODIFIED ADJUSTED 
GROSS INCOME.— 
‘‘(1) IN GENERAL.—The amount allowable as a 
credit under subsection (a) (determined without re-
gard to this paragraph and subsection (c)) for the 
taxable year shall be reduced (but not below zero) by 
4 percent of so much of the taxpayer’s modified ad-
justed gross income as exceeds $75,000 ($150,000 
in the case of a joint return). 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00435
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
436 
AMDT. NO. 98 
‘‘(2) MODIFIED
ADJUSTED
GROSS
INCOME.— 
For purposes of subparagraph (A), the term ‘modi-
fied adjusted gross income’ means the adjusted 
gross income of the taxpayer for the taxable year in-
creased by any amount excluded from gross income 
under section 911, 931, or 933. 
‘‘(c) REDUCTION
FOR
CERTAIN
OTHER
PAY-
MENTS.—The credit allowed under subsection (a) for any 
taxable year shall be reduced by the amount of any pay-
ments received by the taxpayer during such taxable year 
under section 1601 of the American Recovery and Rein-
vestment Tax Act of 2009. 
‘‘(d) DEFINITIONS.—For purposes of this section— 
‘‘(1) ELIGIBLE INDIVIDUAL.—The term ‘eligible 
individual’ means any individual other than— 
‘‘(A) any nonresident alien individual, 
‘‘(B) any individual with respect to whom 
a deduction under section 151 is allowable to 
another taxpayer for a taxable year beginning 
in the calendar year in which the individual’s 
taxable year begins, and 
‘‘(C) an estate or trust. 
Such term shall not include any individual unless the 
requirements of section 32(c)(1)(E) are met with re-
spect to such individual. 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00436
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
437 
AMDT. NO. 98 
‘‘(2) EARNED INCOME.—The term ‘earned in-
come’ has the meaning given such term by section 
32(c)(2), except that such term shall not include net 
earnings from self-employment which are not taken 
into account in computing taxable income. For pur-
poses of the preceding sentence, any amount ex-
cluded from gross income by reason of section 112 
shall be treated as earned income which is taken 
into account in computing taxable income for the 
taxable year. 
‘‘(e) TERMINATION.—This section shall not apply to 
taxable years beginning after December 31, 2010.’’. 
(b) TREATMENT OF POSSESSIONS.— 
(1) PAYMENTS TO POSSESSIONS.— 
(A) MIRROR CODE POSSESSION.—The Sec-
retary of the Treasury shall pay to each posses-
sion of the United States with a mirror code 
tax system amounts equal to the loss to that 
possession by reason of the amendments made 
by this section with respect to taxable years be-
ginning in 2009 and 2010. Such amounts shall 
be determined by the Secretary of the Treasury 
based on information provided by the govern-
ment of the respective possession. 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00437
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
438 
AMDT. NO. 98 
(B) OTHER POSSESSIONS.—The Secretary 
of the Treasury shall pay to each possession of 
the United States which does not have a mirror 
code tax system amounts estimated by the Sec-
retary of the Treasury as being equal to the ag-
gregate benefits that would have been provided 
to residents of such possession by reason of the 
amendments made by this section for taxable 
years beginning in 2009 and 2010 if a mirror 
code tax system had been in effect in such pos-
session. The preceding sentence shall not apply 
with respect to any possession of the United 
States unless such possession has a plan, which 
has been approved by the Secretary of the 
Treasury, under which such possession will 
promptly distribute such payments to the resi-
dents of such possession. 
(2) COORDINATION
WITH
CREDIT
ALLOWED 
AGAINST UNITED STATES INCOME TAXES.—No cred-
it shall be allowed against United States income 
taxes for any taxable year under section 36A of the 
Internal Revenue Code of 1986 (as added by this 
section) to any person— 
(A) to whom a credit is allowed against 
taxes imposed by the possession by reason of 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00438
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
439 
AMDT. NO. 98 
the amendments made by this section for such 
taxable year, or 
(B) who is eligible for a payment under a 
plan described in paragraph (1)(B) with respect 
to such taxable year. 
(3) DEFINITIONS AND SPECIAL RULES.— 
(A) 
POSSESSION
OF
THE
UNITED 
STATES.—For purposes of this subsection, the 
term ‘‘possession of the United States’’ includes 
the Commonwealth of Puerto Rico and the 
Commonwealth of the Northern Mariana Is-
lands. 
(B) MIRROR CODE TAX SYSTEM.—For pur-
poses of this subsection, the term ‘‘mirror code 
tax system’’ means, with respect to any posses-
sion of the United States, the income tax sys-
tem of such possession if the income tax liabil-
ity of the residents of such possession under 
such system is determined by reference to the 
income tax laws of the United States as if such 
possession were the United States. 
(C) TREATMENT OF PAYMENTS.—For pur-
poses of section 1324(b)(2) of title 31, United 
States Code, the payments under this sub-
section shall be treated in the same manner as 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00439
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
440 
AMDT. NO. 98 
a refund due from the credit allowed under sec-
tion 36A of the Internal Revenue Code of 1986 
(as added by this section). 
(c) REFUNDS DISREGARDED IN THE ADMINISTRA-
TION
OF FEDERAL PROGRAMS
AND FEDERALLY AS-
SISTED PROGRAMS.—Any credit or refund allowed or 
made to any individual by reason of section 36A of the 
Internal Revenue Code of 1986 (as added by this section) 
or by reason of subsection (b) of this section shall not be 
taken into account as income and shall not be taken into 
account as resources for the month of receipt and the fol-
lowing 2 months, for purposes of determining the eligi-
bility of such individual or any other individual for benefits 
or assistance, or the amount or extent of benefits or assist-
ance, under any Federal program or under any State or 
local program financed in whole or in part with Federal 
funds. 
(d) AUTHORITY RELATING TO CLERICAL ERRORS.— 
Section 6213(g)(2) is amended by striking ‘‘and’’ at the 
end of subparagraph (L)(ii), by striking the period at the 
end of subparagraph (M) and inserting ‘‘, and’’, and by 
adding at the end the following new subparagraph: 
‘‘(N) an omission of the reduction required 
under section 36A(c) with respect to the credit 
allowed under section 36A or an omission of the 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00440
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
441 
AMDT. NO. 98 
correct 
TIN 
required 
under 
section 
36A(d)(1).’’. 
(e) CONFORMING AMENDMENTS.— 
(1) Section 6211(b)(4)(A) is amended by insert-
ing ‘‘36A,’’ after ‘‘36,’’. 
(2) Section 1324(b)(2) of title 31, United 
States Code, is amended by inserting ‘‘36A,’’ after 
‘‘36,’’. 
(3) The table of sections for subpart C of part 
IV of subchapter A of chapter 1 is amended by in-
serting after the item relating to section 36 the fol-
lowing new item: 
‘‘Sec. 36A. Making work pay credit.’’. 
(f) EFFECTIVE DATE.—This section, and the amend-
ments made by this section, shall apply to taxable years 
beginning after December 31, 2008. 
SEC. 1002. TEMPORARY INCREASE IN EARNED INCOME TAX 
CREDIT. 
(a) IN GENERAL.—Subsection (b) of section 32 is 
amended by adding at the end the following new para-
graph: 
‘‘(3) SPECIAL RULES FOR 2009 AND 2010.—In 
the case of any taxable year beginning in 2009 or 
2010— 
‘‘(A) INCREASED
CREDIT
PERCENTAGE 
FOR 3 OR MORE QUALIFYING CHILDREN.—In 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00441
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
442 
AMDT. NO. 98 
the case of a taxpayer with 3 or more qualifying 
children, the credit percentage is 45 percent. 
‘‘(B) REDUCTION
OF
MARRIAGE
PEN-
ALTY.— 
‘‘(i) IN GENERAL.—The dollar amount 
in effect under paragraph (2)(B) shall be 
$5,000. 
‘‘(ii) INFLATION
ADJUSTMENT.—In 
the case of any taxable year beginning in 
2010, the $5,000 amount in clause (i) 
shall be increased by an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost of living adjust-
ment determined under section 1(f)(3) 
for the calendar year in which the tax-
able year begins determined by sub-
stituting ‘calendar year 2008’ for ‘cal-
endar year 1992’ in subparagraph (B) 
thereof. 
‘‘(iii) ROUNDING.—Subparagraph (A) 
of subsection (j)(2) shall apply after taking 
into account any increase under clause 
(ii).’’. 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00442
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
443 
AMDT. NO. 98 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
SEC. 1003. TEMPORARY INCREASE OF REFUNDABLE POR-
TION OF CHILD CREDIT. 
(a) IN GENERAL.—Paragraph (4) of section 24(d) is 
amended to read as follows: 
‘‘(4) SPECIAL RULE FOR 2009 AND 2010.—Not-
withstanding paragraph (3), in the case of any tax-
able year beginning in 2009 or 2010, the dollar 
amount in effect for such taxable year under para-
graph (1)(B)(i) shall be $6,000.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
SEC. 1004. AMERICAN OPPORTUNITY TAX CREDIT. 
(a) IN GENERAL.—Section 25A (relating to Hope 
scholarship credit) is amended by redesignating subsection 
(i) as subsection (j) and by inserting after subsection (h) 
the following new subsection: 
‘‘(i) AMERICAN OPPORTUNITY TAX CREDIT.—In the 
case of any taxable year beginning in 2009 or 2010— 
‘‘(1) INCREASE IN CREDIT.—The Hope Scholar-
ship Credit shall be an amount equal to the sum 
of— 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00443
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
444 
AMDT. NO. 98 
‘‘(A) 100 percent of so much of the quali-
fied tuition and related expenses paid by the 
taxpayer during the taxable year (for education 
furnished to the eligible student during any 
academic period beginning in such taxable year) 
as does not exceed $2,000, plus 
‘‘(B) 25 percent of such expenses so paid 
as exceeds $2,000 but does not exceed $4,000. 
‘‘(2) CREDIT ALLOWED FOR FIRST 4 YEARS OF 
POST-SECONDARY EDUCATION.—Subparagraphs (A) 
and (C) of subsection (b)(2) shall be applied by sub-
stituting ‘4’ for ‘2’. 
‘‘(3) QUALIFIED
TUITION
AND
RELATED
EX-
PENSES
TO
INCLUDE
REQUIRED
COURSE
MATE-
RIALS.—Subsection (f)(1)(A) shall be applied by 
substituting ‘tuition, fees, and course materials’ for 
‘tuition and fees’. 
‘‘(4) INCREASE
IN
AGI
LIMITS
FOR
HOPE 
SCHOLARSHIP
CREDIT.—In lieu of applying sub-
section (d) with respect to the Hope Scholarship 
Credit, such credit (determined without regard to 
this paragraph) shall be reduced (but not below 
zero) by the amount which bears the same ratio to 
such credit (as so determined) as— 
‘‘(A) the excess of— 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00444
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
445 
AMDT. NO. 98 
‘‘(i) the taxpayer’s modified adjusted 
gross income (as defined in subsection 
(d)(3)) for such taxable year, over 
‘‘(ii) $80,000 ($160,000 in the case of 
a joint return), bears to 
‘‘(B) $10,000 ($20,000 in the case of a 
joint return). 
‘‘(5) CREDIT ALLOWED AGAINST ALTERNATIVE 
MINIMUM TAX.—In the case of a taxable year to 
which section 26(a)(2) does not apply, so much of 
the credit allowed under subsection (a) as is attrib-
utable to the Hope Scholarship Credit shall not ex-
ceed the excess of— 
‘‘(A) the sum of the regular tax liability 
(as defined in section 26(b)) plus the tax im-
posed by section 55, over 
‘‘(B) the sum of the credits allowable 
under this subpart (other than this subsection 
and sections 23, 25D, and 30D) and section 27 
for the taxable year. 
Any reference in this section or section 24, 25, 26, 
25B, 904, or 1400C to a credit allowable under this 
subsection shall be treated as a reference to so much 
of the credit allowable under subsection (a) as is at-
tributable to the Hope Scholarship Credit. 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00445
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
446 
AMDT. NO. 98 
‘‘(6) PORTION
OF
CREDIT
MADE
REFUND-
ABLE.—30 percent of so much of the credit allowed 
under subsection (a) as is attributable to the Hope 
Scholarship Credit (determined after application of 
paragraph (4) and without regard to this paragraph 
and section 26(a)(2) or paragraph (5), as the case 
may be) shall be treated as a credit allowable under 
subpart C (and not allowed under subsection (a)). 
The preceding sentence shall not apply to any tax-
payer for any taxable year if such taxpayer is a child 
to whom subsection (g) of section 1 applies for such 
taxable year. 
‘‘(7) COORDINATION
WITH
MIDWESTERN
DIS-
ASTER AREA BENEFITS.—In the case of a taxpayer 
with respect to whom section 702(a)(1)(B) of the 
Heartland Disaster Tax Relief Act of 2008 applies 
for any taxable year, such taxpayer may elect to 
waive the application of this subsection to such tax-
payer for such taxable year.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 24(b)(3)(B) is amended by inserting 
‘‘25A(i),’’ after ‘‘23,’’. 
(2) Section 25(e)(1)(C)(ii) is amended by in-
serting ‘‘25A(i),’’ after ‘‘24,’’. 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00446
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
447 
AMDT. NO. 98 
(3) Section 26(a)(1) is amended by inserting 
‘‘25A(i),’’ after ‘‘24,’’. 
(4) Section 25B(g)(2) is amended by inserting 
‘‘25A(i),’’ after ‘‘23,’’. 
(5) Section 904(i) is amended by inserting 
‘‘25A(i),’’ after ‘‘24,’’. 
(6) Section 1400C(d)(2) is amended by insert-
ing ‘‘25A(i),’’ after ‘‘24,’’. 
(7) Section 1324(b)(2) of title 31, United 
States Code, is amended by inserting ‘‘25A,’’ before 
‘‘35’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
(d) APPLICATION
OF
EGTRRA SUNSET.—The 
amendment made by subsection (b)(1) shall be subject to 
title IX of the Economic Growth and Tax Relief Reconcili-
ation Act of 2001 in the same manner as the provision 
of such Act to which such amendment relates. 
(e) TREASURY STUDIES REGARDING EDUCATION IN-
CENTIVES.— 
(1) STUDY
REGARDING
COORDINATION
WITH 
NON-TAX
EDUCATIONAL
INCENTIVES.—The Sec-
retary of the Treasury, or the Secretary’s delegate, 
shall study how to coordinate the credit allowed 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00447
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
448 
AMDT. NO. 98 
under section 25A of the Internal Revenue Code of 
1986 with the Federal Pell Grant program under 
section 401 of the Higher Education Act of 1965. 
(2) STUDY REGARDING IMPOSITION OF COMMU-
NITY
SERVICE
REQUIREMENTS.—The Secretary of 
the Treasury, or the Secretary’s delegate, shall study 
the feasibility of requiring students to perform com-
munity service as a condition of taking their tuition 
and related expenses into account under section 25A 
of the Internal Revenue Code of 1986. 
(3) REPORT.—Not later than 1 year after the 
date of the enactment of this Act, the Secretary of 
the Treasury, or the Secretary’s delegate, shall re-
port to Congress on the results of the studies con-
ducted under this paragraph. 
SEC. 1005. COMPUTER TECHNOLOGY AND EQUIPMENT AL-
LOWED AS A QUALIFIED HIGHER EDUCATION 
EXPENSE FOR SECTION 529 ACCOUNTS IN 
2009 AND 2010. 
(a) IN GENERAL.—Section 529(e)(3)(A) is amended 
by striking ‘‘and’’ at the end of clause (i), by striking the 
period at the end of clause (ii), and by adding at the end 
the following: 
‘‘(iii) expenses paid or incurred in 
2009 or 2010 for the purchase of any com-
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00448
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
449 
AMDT. NO. 98 
puter technology or equipment (as defined 
in section 170(e)(6)(F)(i)) or Internet ac-
cess and related services, if such tech-
nology, equipment, or services are to be 
used by the beneficiary and the bene-
ficiary’s family during any of the years the 
beneficiary is enrolled at an eligible edu-
cational institution. 
Clause (iii) shall not include expenses for com-
puter software designed for sports, games, or 
hobbies unless the software is predominantly 
educational in nature.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenses paid or incurred after 
December 31, 2008. 
SEC. 1006. EXTENSION OF FIRST-TIME HOMEBUYER CRED-
IT; WAIVER OF REQUIREMENT TO REPAY. 
(a) EXTENSION.— 
(1) IN GENERAL.—Section 36(h) is amended by 
striking ‘‘July 1, 2009’’ and inserting ‘‘September 1, 
2009’’. 
(2) CONFORMING AMENDMENT.—Section 36(g) 
is amended by striking ‘‘July 1, 2009’’ and inserting 
‘‘September 1, 2009’’. 
(b) WAIVER OF RECAPTURE.— 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00449
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
450 
AMDT. NO. 98 
(1) IN
GENERAL.—Paragraph (4) of section 
36(f) is amended by adding at the end the following 
new subparagraph: 
‘‘(D) WAIVER OF RECAPTURE FOR PUR-
CHASES IN 2009.—In the case of any credit al-
lowed with respect to the purchase of a prin-
cipal residence after December 31, 2008, and 
before September 1, 2009— 
‘‘(i) paragraph (1) shall not apply, 
and 
‘‘(ii) paragraph (2) shall apply only if 
the disposition or cessation described in 
paragraph (2) with respect to such resi-
dence occurs during the 36-month period 
beginning on the date of the purchase of 
such residence by the taxpayer.’’. 
(2) CONFORMING AMENDMENT.—Subsection (g) 
of section 36 is amended by striking ‘‘subsection 
(c)’’ and inserting ‘‘subsections (c) and (f)(4)(D)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to residences purchased after De-
cember 31, 2008. 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00450
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
451 
AMDT. NO. 98 
SEC. 1007. SUSPENSION OF TAX ON PORTION OF UNEM-
PLOYMENT COMPENSATION. 
(a) IN GENERAL.—Section 85 of the Internal Rev-
enue Code of 1986 (relating to unemployment compensa-
tion) is amended by adding at the end the following new 
subsection: 
‘‘(c) SPECIAL RULE FOR 2009.—In the case of any 
taxable year beginning in 2009, gross income shall not in-
clude so much of the unemployment compensation received 
by an individual as does not exceed $2,400.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
PART II—ALTERNATIVE MINIMUM TAX RELIEF 
SEC. 1011. EXTENSION OF ALTERNATIVE MINIMUM TAX RE-
LIEF 
FOR 
NONREFUNDABLE 
PERSONAL 
CREDITS. 
(a) IN GENERAL.—Paragraph (2) of section 26(a) 
(relating to special rule for taxable years 2000 through 
2008) is amended— 
(1) by striking ‘‘or 2008’’ and inserting ‘‘2008, 
or 2009’’, and 
(2) by striking ‘‘2008’’ in the heading thereof 
and inserting ‘‘2009’’. 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00451
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
452 
AMDT. NO. 98 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
SEC. 1012. EXTENSION OF INCREASED ALTERNATIVE MIN-
IMUM TAX EXEMPTION AMOUNT. 
(a) IN GENERAL.—Paragraph (1) of section 55(d) 
(relating to exemption amount) is amended— 
(1) by striking ‘‘($69,950 in the case of taxable 
years beginning in 2008)’’ in subparagraph (A) and 
inserting ‘‘($70,950 in the case of taxable years be-
ginning in 2009)’’, and 
(2) by striking ‘‘($46,200 in the case of taxable 
years beginning in 2008)’’ in subparagraph (B) and 
inserting ‘‘($46,700 in the case of taxable years be-
ginning in 2009)’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
Subtitle B—Energy Incentives 
PART I—RENEWABLE ENERGY INCENTIVES 
SEC. 1101. EXTENSION OF CREDIT FOR ELECTRICITY PRO-
DUCED 
FROM 
CERTAIN 
RENEWABLE 
RE-
SOURCES. 
(a) IN GENERAL.—Subsection (d) of section 45 is 
amended— 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00452
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
453 
AMDT. NO. 98 
(1) by striking ‘‘2010’’ in paragraph (1) and in-
serting ‘‘2013’’, 
(2) by striking ‘‘2011’’ each place it appears in 
paragraphs (2), (3), (4), (6), (7) and (9) and insert-
ing ‘‘2014’’, and 
(3) by striking ‘‘2012’’ in paragraph (11)(B) 
and inserting ‘‘2014’’. 
(b) TECHNICAL AMENDMENT.—Paragraph (5) of 
section 45(d) is amended by striking ‘‘and before’’ and 
all that follows and inserting ‘‘ and before October 3, 
2008.’’. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
subsection (a) shall apply to property placed in serv-
ice after the date of the enactment of this Act. 
(2) TECHNICAL AMENDMENT.—The amendment 
made by subsection (b) shall take effect as if in-
cluded in section 102 of the Energy Improvement 
and Extension Act of 2008. 
SEC. 1102. ELECTION OF INVESTMENT CREDIT IN LIEU OF 
PRODUCTION CREDIT. 
(a) IN GENERAL.—Subsection (a) of section 48 is 
amended by adding at the end the following new para-
graph: 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00453
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
454 
AMDT. NO. 98 
‘‘(5) ELECTION TO TREAT QUALIFIED FACILI-
TIES AS ENERGY PROPERTY.— 
‘‘(A) IN
GENERAL.—In the case of any 
qualified investment credit facility— 
‘‘(i) such facility shall be treated as 
energy property for purposes of this sec-
tion, and 
‘‘(ii) the energy percentage with re-
spect to such property shall be 30 percent. 
‘‘(B) DENIAL OF PRODUCTION CREDIT.— 
No credit shall be allowed under section 45 for 
any taxable year with respect to any qualified 
investment credit facility. 
‘‘(C) QUALIFIED INVESTMENT CREDIT FA-
CILITY.—For purposes of this paragraph, the 
term ‘qualified investment credit facility’ means 
any of the following facilities if no credit has 
been allowed under section 45 with respect to 
such facility and the taxpayer makes an irrev-
ocable election to have this paragraph apply to 
such facility: 
‘‘(i) WIND FACILITIES.—Any facility 
described in paragraph (1) of section 45(d) 
if such facility is placed in service in 2009, 
2010, 2011, or 2012. 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00454
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
455 
AMDT. NO. 98 
‘‘(ii) OTHER FACILITIES.—Any facility 
described in paragraph (2), (3), (4), (6), 
(7), (9), or (11) of section 45(d) if such fa-
cility is placed in service in 2009, 2010, 
2011, 2012, or 2013.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to facilities placed in service after 
December 31, 2008. 
SEC. 1103. REPEAL OF CERTAIN LIMITATIONS ON CREDIT 
FOR RENEWABLE ENERGY PROPERTY. 
(a) REPEAL OF LIMITATION ON CREDIT FOR QUALI-
FIED SMALL WIND ENERGY PROPERTY.—Paragraph (4) 
of section 48(c) is amended by striking subparagraph (B) 
and by redesignating subparagraphs (C) and (D) as sub-
paragraphs (B) and (C). 
(b) REPEAL
OF LIMITATION
ON PROPERTY FI-
NANCED BY SUBSIDIZED ENERGY FINANCING.— 
(1) IN GENERAL.—Section 48(a)(4) is amended 
by adding at the end the following new subpara-
graph: 
‘‘(D) 
TERMINATION.—This 
paragraph 
shall not apply to periods after December 31, 
2008, under rules similar to the rules of section 
48(m) (as in effect on the day before the date 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00455
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
456 
AMDT. NO. 98 
of the enactment of the Revenue Reconciliation 
Act of 1990).’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 25C(e)(1) is amended by strik-
ing ‘‘(8), and (9)’’ and inserting ‘‘and (8)’’. 
(B) Section 25D(e) is amended by striking 
paragraph (9). 
(C) Section 48A(b)(2) is amended by in-
serting ‘‘(without regard to subparagraph (D) 
thereof)’’ after ‘‘section 48(a)(4)’’. 
(D) Section 48B(b)(2) is amended by in-
serting ‘‘(without regard to subparagraph (D) 
thereof)’’ after ‘‘section 48(a)(4)’’. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendment made by this section shall 
apply to periods after December 31, 2008, under 
rules similar to the rules of section 48(m) of the In-
ternal Revenue Code of 1986 (as in effect on the day 
before the date of the enactment of the Revenue 
Reconciliation Act of 1990). 
(2) CONFORMING AMENDMENTS.—The amend-
ments made by subsection (b)(2) shall apply to tax-
able years beginning after December 31, 2008. 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00456
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
457 
AMDT. NO. 98 
PART II—INCREASED ALLOCATIONS OF NEW 
CLEAN RENEWABLE ENERGY BONDS AND 
QUALIFIED ENERGY CONSERVATION BONDS 
SEC. 1111. INCREASED LIMITATION ON ISSUANCE OF NEW 
CLEAN RENEWABLE ENERGY BONDS. 
Subsection (c) of section 54C is amended by adding 
at the end the following new paragraph: 
‘‘(4) ADDITIONAL
LIMITATION.—The national 
new clean renewable energy bond limitation shall be 
increased by $1,600,000,000. Such increase shall be 
allocated by the Secretary consistent with the rules 
of paragraphs (2) and (3).’’. 
SEC. 1112. INCREASED LIMITATION ON ISSUANCE OF 
QUALIFIED ENERGY CONSERVATION BONDS. 
Section 
54D(d) 
is 
amended 
by 
striking 
‘‘800,000,000’’ and inserting ‘‘$3,200,000,000’’. 
PART III—ENERGY CONSERVATION INCENTIVES 
SEC. 1121. EXTENSION AND MODIFICATION OF CREDIT FOR 
NONBUSINESS ENERGY PROPERTY. 
(a) IN GENERAL.—Section 25C is amended by strik-
ing subsections (a) and (b) and inserting the following new 
subsections: 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual, there shall be allowed as a credit against the tax 
imposed by this chapter for the taxable year an amount 
equal to 30 percent of the sum of— 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00457
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
458 
AMDT. NO. 98 
‘‘(1) the amount paid or incurred by the tax-
payer during such taxable year for qualified energy 
efficiency improvements, and 
‘‘(2) the amount of the residential energy prop-
erty expenditures paid or incurred by the taxpayer 
during such taxable year. 
‘‘(b) LIMITATION.—The aggregate amount of the 
credits allowed under this section for taxable years begin-
ning in 2009 and 2010 with respect to any taxpayer shall 
not exceed $1,500.’’. 
(b) EXTENSION.—Section 25C(g)(2) is amended by 
striking ‘‘December 31, 2009’’ and inserting ‘‘December 
31, 2010’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
SEC. 1122. MODIFICATION OF CREDIT FOR RESIDENTIAL 
ENERGY EFFICIENT PROPERTY. 
(a) REMOVAL OF CREDIT LIMITATION FOR PROP-
ERTY PLACED IN SERVICE.— 
(1) IN
GENERAL.—Paragraph (1) of section 
25D(b) is amended to read as follows: 
‘‘(1) MAXIMUM CREDIT FOR FUEL CELLS.—In 
the case of any qualified fuel cell property expendi-
ture, the credit allowed under subsection (a) (deter-
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00458
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
459 
AMDT. NO. 98 
mined without regard to subsection (c)) for any tax-
able year shall not exceed $500 with respect to each 
half kilowatt of capacity of the qualified fuel cell 
property (as defined in section 48(c)(1)) to which 
such expenditure relates.’’. 
(2) CONFORMING AMENDMENT.—Paragraph (4) 
of section 25D(e) is amended— 
(A) by striking all that precedes subpara-
graph (B) and inserting the following: 
‘‘(4) FUEL
CELL
EXPENDITURE
LIMITATIONS 
IN CASE OF JOINT OCCUPANCY.—In the case of any 
dwelling unit with respect to which qualified fuel cell 
property expenditures are made and which is jointly 
occupied and used during any calendar year as a 
residence by two or more individuals the following 
rules shall apply: 
‘‘(A) MAXIMUM EXPENDITURES FOR FUEL 
CELLS.—The maximum amount of such ex-
penditures which may be taken into account 
under subsection (a) by all such individuals 
with respect to such dwelling unit during such 
calendar year shall be $1,667 in the case of 
each half kilowatt of capacity of qualified fuel 
cell property (as defined in section 48(c)(1)) 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00459
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
460 
AMDT. NO. 98 
with respect to which such expenditures re-
late.’’, and 
(B) by striking subparagraph (C). 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
SEC. 1123. TEMPORARY INCREASE IN CREDIT FOR ALTER-
NATIVE FUEL VEHICLE REFUELING PROP-
ERTY. 
(a) IN GENERAL.—Section 30C(e) is amended by 
adding at the end the following new paragraph: 
‘‘(6) SPECIAL RULE FOR PROPERTY PLACED IN 
SERVICE
DURING
2009
AND
2010.—In the case of 
property placed in service in taxable years beginning 
after December 31, 2008, and before January 1, 
2011— 
‘‘(A) in the case of any such property 
which does not relate to hydrogen— 
‘‘(i) subsection (a) shall be applied by 
substituting ‘50 percent’ for ‘30 percent’, 
‘‘(ii) subsection (b)(1) shall be applied 
by substituting ‘$50,000’ for ‘$30,000’, 
and 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00460
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
461 
AMDT. NO. 98 
‘‘(iii) subsection (b)(2) shall be ap-
plied by substituting ‘$2,000’ for ‘$1,000’, 
and 
‘‘(B) in the case of any such property 
which relates to hydrogen, subsection (b)(1) 
shall be applied by substituting ‘$200,000’ for 
‘$30,000’.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
PART IV—ENERGY RESEARCH INCENTIVES 
SEC. 1131. INCREASED RESEARCH CREDIT FOR ENERGY RE-
SEARCH. 
(a) IN GENERAL.—Section 41 is amended by redesig-
nating subsection (h) as subsection (i) and by inserting 
after subsection (g) the following new subsection: 
‘‘(h) ENERGY RESEARCH CREDIT.—In the case of 
any taxable year beginning in 2009 or 2010— 
‘‘(1) IN
GENERAL.—The credit determined 
under subsection (a)(1) shall be increased by 20 per-
cent of the qualified energy research expenses for 
the taxable year. 
‘‘(2) 
QUALIFIED
ENERGY
RESEARCH
EX-
PENSES.—For purposes of this subsection— 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00461
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
462 
AMDT. NO. 98 
‘‘(A) IN
GENERAL.—The term ‘qualified 
energy research expenses’ means so much of the 
taxpayer’s qualified research expenses as are re-
lated to the fields of fuel cells and battery tech-
nology, renewable energy and renewable fuels, 
energy conservation technology, efficient trans-
mission and distribution of electricity, and car-
bon capture and sequestration. 
‘‘(B) COORDINATION
WITH
QUALIFYING 
ADVANCED
ENERGY
PROJECT
CREDIT.—Such 
term shall not include expenditures taken into 
account in determining the amount of the credit 
under section 48 or 48C. 
‘‘(3) COORDINATION
WITH
OTHER
RESEARCH 
CREDITS.— 
‘‘(A) IN GENERAL.—The amount of quali-
fied energy research expenses taken into ac-
count under subsection (a)(1)(A) shall not ex-
ceed the base amount. 
‘‘(B) ALTERNATIVE SIMPLIFIED CREDIT.— 
For purposes of subsection (c)(5), the amount 
of qualified energy research expenses taken into 
account for the taxable year for which the cred-
it is being determined shall not exceed— 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00462
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
463 
AMDT. NO. 98 
‘‘(i) 
in 
the 
case 
of 
subsection 
(c)(5)(A), 50 percent of the average quali-
fied research expenses for the 3 taxable 
years preceding the taxable year for which 
the credit is being determined, and 
‘‘(ii) 
in 
the 
case 
of 
subsection 
(c)(5)(B)(ii), zero. 
‘‘(C) BASIC RESEARCH AND ENERGY RE-
SEARCH CONSORTIUM PAYMENTS.—Any amount 
taken into account under paragraph (1) shall 
not be taken into account under paragraph (2) 
or (3) of subsection (a).’’. 
(b) CONFORMING AMENDMENT.—Subparagraph (B) 
of section 41(i)(1)(B), as redesignated by subsection (a), 
is amended by inserting ‘‘(in the case of the increase in 
the credit determined under subsection (h), December 31, 
2010)’’ after ‘‘December 31, 2009’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00463
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
464 
AMDT. NO. 98 
PART V—GENERAL BUSINESS CREDIT 
SEC. 1141. 5-YEAR CARRYBACK OF GENERAL BUSINESS 
CREDITS. 
(a) IN GENERAL.—Subsection (a) of section 39 is 
amended by adding at the end the following new para-
graph: 
‘‘(4) SPECIAL RULE FOR 2008 AND 2009 BUSI-
NESS CREDITS.—In the case of any current year 
business credit for a taxable year ending in 2008 or 
2009— 
‘‘(A) paragraph (1)(A) shall be applied by 
substituting ‘each of the 5 taxable years’ for 
‘the taxable year’ in subparagraph (A) thereof, 
and 
‘‘(B) paragraph (2) shall be applied— 
‘‘(i) by substituting ‘25 taxable years’ 
for ‘21 taxable years’, and 
‘‘(ii) by substituting ‘24 taxable years’ 
for ‘20 taxable years’.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this subsection shall apply to taxable years ending after 
December 31, 2007, and to carrybacks of business credits 
from such taxable years. 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00464
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
465 
AMDT. NO. 98 
SEC. 1142. TEMPORARY PROVISION ALLOWING GENERAL 
BUSINESS CREDITS TO OFFSET 100 PERCENT 
OF FEDERAL INCOME TAX LIABILITY. 
(a) IN GENERAL.—Subsection (c) of section 38 is 
amended by adding at the end the following new para-
graph: 
‘‘(6) TEMPORARY PROVISION ALLOWING GEN-
ERAL BUSINESS CREDITS TO OFFSET 100 PERCENT 
OF FEDERAL INCOME TAX LIABILITY.— 
‘‘(A) IN GENERAL.—In the case of a tax-
able year ending in 2008 or 2009— 
‘‘(i) the limitation under paragraph 
(1) shall be the net income tax (as defined 
in paragraph (1)) for purposes of deter-
mining the amount of the credit allowed 
under subsection (a) for such taxable year, 
and 
‘‘(ii) the excess credit for such taxable 
year shall, solely for purposes of deter-
mining the amount of such excess credit 
which may be carried back to a preceding 
taxable year, be increased by the amount 
of business credit carryforwards which are 
carried to such taxable year and which are 
not allowed for such taxable year by reason 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00465
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
466 
AMDT. NO. 98 
of the limitation under paragraph (1) (as 
modified by clause (i)). 
‘‘(B) INCREASE IN LIMITATION FOR TAX-
ABLE YEARS TO WHICH EXCESS CREDITS FOR 
2008 AND 2009 ARE CARRIED BACK.— 
‘‘(i) IN
GENERAL.—Solely for pur-
poses of determining the portion of any ex-
cess credit described in subparagraph 
(A)(ii) for which credit will be allowed 
under subsection (a)(3) for any preceding 
taxable year, the limitation under para-
graph (1) for such preceding taxable year 
shall be the net income tax (as defined in 
paragraph (1)). 
‘‘(ii) ORDERING RULE.—If the excess 
credit described in subparagraph (A)(ii) in-
cludes business credit carryforwards from 
preceding taxable years, such excess credit 
shall be treated as allowed for any pre-
ceding taxable year on a first-in first-out 
basis.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years ending after De-
cember 31, 2007, and to carrybacks of credits from such 
taxable years. 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00466
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
467 
AMDT. NO. 98 
PART VI—MODIFICATION OF CREDIT FOR 
CARBON DIOXIDE SEQUESTRATION 
SEC. 1151. APPLICATION OF MONITORING REQUIREMENTS 
TO CARBON DIOXIDE USED AS A TERTIARY 
INJECTANT. 
(a) IN GENERAL.—Section 45Q(a)(2) is amended by 
striking ‘‘and’’ at the end of subparagraph (A), by striking 
the period at the end of subparagraph (B) and inserting 
‘‘,and’’, and by adding at the end the following new sub-
paragraph: 
‘‘(C) disposed of by the taxpayer in secure 
geological storage.’’. 
(b) CONFORMING AMENDMENT.—Section 45Q(d)(2) 
is amended by striking ‘‘subsection (a)(1)(B)’’ and insert-
ing ‘‘paragraph (1)(B) or (2)(C) of subsection (a)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to carbon dioxide captured after 
the date of the enactment of this Act. 
PART VII—PLUG-IN ELECTRIC DRIVE MOTOR 
VEHICLES 
SEC. 1161. MODIFICATION OF CREDIT FOR QUALIFIED 
PLUG-IN ELECTRIC MOTOR VEHICLES. 
(a) INCREASE IN VEHICLES ELIGIBLE FOR CRED-
IT.—Section 30D(b)(2)(B) is amended by striking 
‘‘250,000’’ and inserting ‘‘500,000’’. 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00467
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
468 
AMDT. NO. 98 
(b) EXCLUSION OF NEIGHBORHOOD ELECTRIC VEHI-
CLES FROM EXISTING CREDIT.—Section 30D(e)(1) is 
amended to read as follows: 
‘‘(1) MOTOR VEHICLE.—The term ‘motor vehi-
cle’ means a motor vehicle (as defined in section 
30(c)(2)), which is treated as a motor vehicle for 
purposes of title II of the Clean Air Act.’’. 
(c) CREDIT FOR CERTAIN OTHER VEHICLES.—Sec-
tion 30D is amended— 
(1) by redesignating subsections (f) and (g) as 
subsections (g) and (h), respectively, and 
(2) by inserting after subsection (e) the fol-
lowing new subsection: 
‘‘(f) CREDIT FOR CERTAIN OTHER VEHICLES.—For 
purposes of this section— 
‘‘(1) IN GENERAL.—In the case of a specified 
vehicle, this section shall be applied with the fol-
lowing modifications: 
‘‘(A) For purposes of subsection (a)(1), in 
lieu of the applicable amount determined under 
subsection (a)(2), the applicable amount shall 
be 10 percent of so much of the cost of the 
specified vehicle as does not exceed $40,000. 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00468
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
469 
AMDT. NO. 98 
‘‘(B) Subsection (b) shall not apply and no 
specified vehicle shall be taken into account 
under subsection (b)(2). 
‘‘(C) Subsection (c)(3) shall not apply. 
‘‘(2) SPECIFIED
VEHICLE.—For purposes of 
this subsection— 
‘‘(A) IN
GENERAL.—The term ‘specified 
vehicle’ means— 
‘‘(i) any 2- or 3- wheeled motor vehi-
cle, or 
‘‘(ii) any low-speed motor vehicle, 
which is placed in service after December 31, 
2009, and before January 1, 2012. 
‘‘(B) 2- OR
3-WHEELED
MOTOR
VEHI-
CLE.—The term ‘2- or 3-wheeled motor vehicle’ 
means any vehicle— 
‘‘(i) which would be described in sec-
tion 30(c)(2) except that it has 2 or 3 
wheels, 
‘‘(ii) with motive power having a seat 
or saddle for the use of the rider and de-
signed to travel on not more than 3 wheels 
in contact with the ground, 
‘‘(iii) which has an electric motor that 
produces in excess of 5-brake horsepower, 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00469
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
470 
AMDT. NO. 98 
‘‘(iv) which draws propulsion from 1 
or more traction batteries, and 
‘‘(v) which has been certified to the 
Department of Transportation pursuant to 
section 567 of title 49, Code of Federal 
Regulations, as conforming to all applica-
ble Federal motor vehicle safety standards 
in effect on the date of the manufacture of 
the vehicle. 
‘‘(C) LOW-SPEED
MOTOR
VEHICLE.—The 
term ‘low-speed motor vehicle’ means a motor 
vehicle (as defined in section 30(c)(2)) which 
meets the requirements of section 571.500 of 
title 49, Code of Federal Regulations.’’. 
(d) EFFECTIVE DATES.— 
(1) INCREASE
IN
VEHICLES
ELIGIBLE
FOR 
CREDIT.—The amendment made by subsection (a) 
shall take effect on the date of the enactment of this 
Act. 
(2) OTHER MODIFICATIONS.—The amendments 
made by subsections (b) and (c) shall apply to prop-
erty placed in service after December 31, 2009, in 
taxable years beginning after such date. 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00470
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
471 
AMDT. NO. 98 
Subtitle C—Tax Incentives for 
Business 
PART I—TEMPORARY INVESTMENT INCENTIVES 
SEC. 1201. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY 
ACQUIRED DURING 2009. 
(a) EXTENSION OF SPECIAL ALLOWANCE.— 
(1) IN
GENERAL.—Paragraph (2) of section 
168(k) is amended— 
(A) by striking ‘‘January 1, 2010’’ and in-
serting ‘‘January 1, 2011’’, and 
(B) by striking ‘‘January 1, 2009’’ each 
place it appears and inserting ‘‘January 1, 
2010’’. 
(2) CONFORMING AMENDMENTS.— 
(A) The heading for subsection (k) of sec-
tion 168 is amended by striking ‘‘JANUARY 1, 
2009’’ and inserting ‘‘JANUARY 1, 2010’’. 
(B) The heading for clause (ii) of section 
168(k)(2)(B) is amended by striking ‘‘PRE-JAN-
UARY 1, 2009’’ and inserting ‘‘PRE-JANUARY 1, 
2010’’. 
(C) Subparagraph (B) of section 168(l)(5) 
is amended by striking ‘‘January 1, 2009’’ and 
inserting ‘‘January 1, 2010’’. 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00471
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
472 
AMDT. NO. 98 
(D) Subparagraph (C) of section 168(n)(2) 
is amended by striking ‘‘January 1, 2009’’ and 
inserting ‘‘January 1, 2010’’. 
(E) 
Subparagraph 
(B) 
of 
section 
1400N(d)(3) is amended by striking ‘‘January 
1, 2009’’ and inserting ‘‘January 1, 2010’’. 
(3) TECHNICAL
AMENDMENT.—Subparagraph 
(D) of section 168(k)(4) is amended— 
(A) by striking ‘‘and’’ at the end of clause 
(i), 
(B) by redesignating clause (ii) as clause 
(iii), and 
(C) by inserting after clause (i) the fol-
lowing new clause: 
‘‘(ii) ‘April 1, 2008’ shall be sub-
stituted for ‘January 1, 2008’ in subpara-
graph (A)(iii)(I) thereof, and’’. 
(b) EXTENSION OF ELECTION TO ACCELERATE THE 
AMT AND RESEARCH CREDITS IN LIEU OF BONUS DE-
PRECIATION.—Section 168(k)(4) (relating to election to 
accelerate the AMT and research credits in lieu of bonus 
depreciation) is amended— 
(1) by striking ‘‘2009’’ and inserting ‘‘2010’’in 
subparagraph (D)(iii) (as redesignated by subsection 
(a)(3)), and 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00472
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
473 
AMDT. NO. 98 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(H) SPECIAL
RULES
FOR
EXTENSION 
PROPERTY.— 
‘‘(i) TAXPAYERS PREVIOUSLY ELECT-
ING ACCELERATION.—In the case of a tax-
payer who made the election under sub-
paragraph (A) for its first taxable year 
ending after March 31, 2008— 
‘‘(I) the taxpayer may elect not 
to have this paragraph apply to exten-
sion property, but 
‘‘(II) if the taxpayer does not 
make the election under subclause (I), 
in applying this paragraph to the tax-
payer a separate bonus depreciation 
amount, maximum amount, and max-
imum increase amount shall be com-
puted and applied to eligible qualified 
property which is extension property 
and to eligible qualified property 
which is not extension property. 
‘‘(ii) TAXPAYERS
NOT
PREVIOUSLY 
ELECTING ACCELERATION.—In the case of 
a taxpayer who did not make the election 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00473
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
474 
AMDT. NO. 98 
under subparagraph (A) for its first tax-
able year ending after March 31, 2008— 
‘‘(I) the taxpayer may elect to 
have this paragraph apply to its first 
taxable year ending after December 
31, 2008, and each subsequent tax-
able year, and 
‘‘(II) if the taxpayer makes the 
election under subclause (I), this 
paragraph shall only apply to eligible 
qualified property which is extension 
property. 
‘‘(iii) EXTENSION
PROPERTY.—For 
purposes of this subparagraph, the term 
‘extension property’ means property which 
is eligible qualified property solely by rea-
son of the extension of the application of 
the special allowance under paragraph (1) 
pursuant to the amendments made by sec-
tion 1201(a) of the American Recovery and 
Reinvestment Tax Act of 2009 (and the 
application of such extension to this para-
graph pursuant to the amendment made 
by section 1201(b)(1) of such Act).’’. 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00474
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
475 
AMDT. NO. 98 
(c) INCLUSION OF FILMS OR VIDEOTAPE AS QUALI-
FIED PROPERTY.— 
(1) IN GENERAL.—Section 168(k)(2) is amend-
ed by adding at the end the following new subpara-
graph: 
‘‘(H) CERTAIN FILMS.—The term ‘quali-
fied property’ includes property— 
‘‘(i) which is a motion picture film or 
video tape (within the meaning of sub-
section (f)(3)) for which a deduction is al-
lowable under section 167(a) without re-
gard to this section, 
‘‘(ii) the original use of which com-
mences with the taxpayer after December 
31, 2008, 
‘‘(iii) which is— 
‘‘(I) acquired by the taxpayer 
after December 31, 2008, and before 
January 1, 2010, but only if no writ-
ten binding contract for the acquisi-
tion was in effect before January 1, 
2009, or 
‘‘(II) acquired by the taxpayer 
pursuant to a written binding contract 
which was entered into after Decem-
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00475
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
476 
AMDT. NO. 98 
ber 31, 2008, and before January 1, 
2010, 
‘‘(iv) which is placed in service by the 
taxpayer before January 1, 2010, or, in 
the case of property described in subpara-
graph (B), before January 1, 2011, and 
‘‘(v) the production of which is a 
qualified film or television production (as 
defined in section 181(d) (determined with-
out regard to paragraph (2)(B)(ii) there-
of)) with respect to which an election is 
not in effect under section 181.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) 
Subclause 
(I) 
of 
section 
168(k)(2)(B)(i) is amended by inserting ‘‘sub-
paragraph (H) or’’ after ‘‘requirements of’’. 
(B) 
Subclause 
(II) 
of 
section 
168(k)(2)(B)(i) is amended by striking ‘‘or is 
transportation property’’ and inserting ‘‘, is 
transportation property, or is property de-
scribed in subparagraph (H)’’. 
(C) Clause (iii) of section 168(k)(2)(D) is 
amended by adding at the end the following 
new sentence: ‘‘For purposes of the preceding 
sentence, all property described in subpara-
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00476
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
477 
AMDT. NO. 98 
graph (H) shall be treated as one class of prop-
erty.’’. 
(D) Subparagraph (E) of section 168(k)(2) 
is amended by adding at the end the following 
new clause: 
‘‘(v) APPLICATION TO FILM AND VID-
EOTAPE PROPERTY.—In the case of prop-
erty 
described 
in 
subparagraph 
(H), 
clauses (i), (ii), (iii), and (iv) of this sub-
paragraph shall be applied— 
‘‘(I) by substituting ‘December 
31, 2008’ for ‘December 31, 2007’ 
each place it appears, and 
‘‘(II) by treating any reference to 
a clause of subparagraph (A) as a ref-
erence to the corresponding clause of 
subparagraph (H).’’. 
(d) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to property placed in service after De-
cember 31, 2008, in taxable years ending after such 
date. 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00477
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
478 
AMDT. NO. 98 
(2) TECHNICAL
AMENDMENT.—The amend-
ments made by subsection (a)(3) shall apply to tax-
able years ending after March 31, 2008. 
SEC. 1202. TEMPORARY INCREASE IN LIMITATIONS ON EX-
PENSING OF CERTAIN DEPRECIABLE BUSI-
NESS ASSETS. 
(a) IN GENERAL.—Paragraph (7) of section 179(b) 
is amended— 
(1) by striking ‘‘2008’’ and inserting ‘‘2008, or 
2009’’, and 
(2) by striking ‘‘2008’’ in the heading thereof 
and inserting ‘‘2008, AND 2009’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
PART II—5-YEAR CARRYBACK OF OPERATING 
LOSSES 
SEC. 1211. 5-YEAR CARRYBACK OF OPERATING LOSSES. 
(a) IN GENERAL.—Subparagraph (H) of section 
172(b)(1) is amended to read as follows: 
‘‘(H) CARRYBACK FOR 2008 AND 2009 NET 
OPERATING LOSSES.— 
‘‘(i) IN GENERAL.—In the case of an 
applicable 2008 or 2009 net operating loss 
with respect to which the taxpayer has 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00478
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
479 
AMDT. NO. 98 
elected the application of this subpara-
graph— 
‘‘(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 (II) for ‘2’, and 
‘‘(III) subparagraph (F) shall not 
apply. 
‘‘(ii) APPLICABLE 2008 OR 2009 NET 
OPERATING
LOSS.—For purposes of this 
subparagraph, the term ‘applicable 2008 
or 2009 net operating loss’ means— 
‘‘(I) the taxpayer’s net operating 
loss for any taxable year ending in 
2008 or 2009, or 
‘‘(II) if the taxpayer elects to 
have this subclause apply in lieu of 
subclause (I), the taxpayer’s net oper-
ating loss for any taxable year begin-
ning in 2008 or 2009. 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00479
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
480 
AMDT. NO. 98 
‘‘(iii) ELECTION.—Any election under 
this subparagraph 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 
taxpayer’s return for the taxable year of 
the net operating loss. Any such election, 
once made, shall be irrevocable. 
‘‘(iv) COORDINATION
WITH
ALTER-
NATIVE TAX NET OPERATING LOSS DEDUC-
TION.—In the case of a taxpayer who 
elects to have clause (ii)(II) apply, section 
56(d)(1)(A)(ii) shall be applied by sub-
stituting ‘ending during 2001 or 2002 or 
beginning during 2008 or 2009’ for ‘end-
ing during 2001, 2002, 2008, or 2009’.’’. 
(b) ALTERNATIVE TAX NET OPERATING LOSS DE-
DUCTION.—Subclause (I) of section 56(d)(1)(A)(ii) is 
amended to read as follows: 
‘‘(I) the amount of such deduc-
tion attributable to the sum of 
carrybacks of net operating losses 
from taxable years ending during 
2001, 2002, 2008, or 2009 and 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00480
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
481 
AMDT. NO. 98 
carryovers of net operating losses to 
such taxable years, or’’. 
(c) LOSS FROM OPERATIONS OF LIFE INSURANCE 
COMPANIES.—Subsection (b) of section 810 is amended 
by adding at the end the following new paragraph: 
‘‘(4) CARRYBACK FOR 2008 AND 2009 LOSSES.— 
‘‘(A) IN GENERAL.—In the case of an ap-
plicable 2008 or 2009 loss from operations with 
respect to which the taxpayer has elected the 
application of this paragraph, paragraph (1)(A) 
shall be applied, at the election of the taxpayer, 
by substituting ‘5’ or ‘4’ for ‘3’. 
‘‘(B) APPLICABLE 2008 OR 2009 LOSS FROM 
OPERATIONS.—For purposes of this paragraph, 
the term ‘applicable 2008 or 2009 loss from op-
erations’ means— 
‘‘(i) the taxpayer’s loss from oper-
ations for any taxable year ending in 2008 
or 2009, or 
‘‘(ii) if the taxpayer elects to have this 
clause apply in lieu of clause (i), the tax-
payer’s loss from operations for any tax-
able year beginning in 2008 or 2009. 
‘‘(C) ELECTION.—Any election under this 
paragraph shall be made in such manner as 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00481
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
482 
AMDT. NO. 98 
may be prescribed by the Secretary, and shall 
be made by the due date (including extension of 
time) for filing the taxpayer’s return for the 
taxable year of the loss from operations. Any 
such election, once made, shall be irrevocable. 
‘‘(D) COORDINATION WITH ALTERNATIVE 
TAX NET OPERATING LOSS DEDUCTION.—In the 
case of a taxpayer who elects to have subpara-
graph (B)(ii) apply, section 56(d)(1)(A)(ii) shall 
be applied by substituting ‘ending during 2001 
or 2002 or beginning during 2008 or 2009’ for 
‘ending during 2001, 2002, 2008, or 2009’.’’. 
(d) CONFORMING
AMENDMENT.—Section 172 is 
amended by striking subsection (k) and by redesignating 
subsection (l) as subsection (k). 
(e) EFFECTIVE DATE.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the amendments made by 
this section shall apply to net operating losses aris-
ing in taxable years ending after December 31, 
2007. 
(2) ALTERNATIVE TAX NET OPERATING LOSS 
DEDUCTION.—The amendment made by subsection 
(b) shall apply to taxable years ending after 1997. 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00482
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
483 
AMDT. NO. 98 
(3) LOSS FROM OPERATIONS OF LIFE INSUR-
ANCE COMPANIES.—The amendment made by sub-
section (d) shall apply to losses from operations aris-
ing in taxable years ending after December 31, 
2007. 
(4) TRANSITIONAL RULE.—In the case of a net 
operating loss (or, in the case of a life insurance 
company, a 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 
(notwithstanding such section) be revoked be-
fore the applicable date, 
(B) any election made under section 
172(k) or 810(b)(4) of such Code with respect 
to such loss shall (notwithstanding such sec-
tion) be treated as timely made if made before 
the applicable date, and 
(C) any application under section 6411(a) 
of such Code with respect to such loss shall be 
treated as timely filed if filed before the appli-
cable date. 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00483
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
484 
AMDT. NO. 98 
For purposes of this paragraph, the term ‘‘applica-
ble date’’ means the date which is 60 days after the 
date of the enactment of this Act. 
SEC. 1212. EXCEPTION FOR TARP RECIPIENTS. 
The amendments made by this part shall not apply 
to— 
(1) any taxpayer if— 
(A) the Federal Government acquires, at 
any time, an equity interest in the taxpayer 
pursuant to the Emergency Economic Stabiliza-
tion Act of 2008, or 
(B) the Federal Government acquires, at 
any time, any warrant (or other right) to ac-
quire any equity interest with respect to the 
taxpayer pursuant to such Act, 
(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 is a member of the same affiliated group (as 
defined in section 1504 of the Internal Revenue 
Code of 1986, determined without regard to sub-
section (b) thereof) as a taxpayer described in para-
graph (1) or (2). 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00484
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
485 
AMDT. NO. 98 
PART III—INCENTIVES FOR NEW JOBS 
SEC. 1221. INCENTIVES TO HIRE UNEMPLOYED VETERANS 
AND DISCONNECTED YOUTH. 
(a) IN GENERAL.—Subsection (d) of section 51 is 
amended by adding at the end the following new para-
graph: 
‘‘(14) CREDIT
ALLOWED
FOR
UNEMPLOYED 
VETERANS
AND
DISCONNECTED
YOUTH
HIRED
IN 
2009 OR 2010.— 
‘‘(A) IN GENERAL.—Any unemployed vet-
eran or disconnected youth who begins work for 
the employer during 2009 or 2010 shall be 
treated as a member of a targeted group for 
purposes of this subpart. 
‘‘(B) DEFINITIONS.—For purposes of this 
paragraph— 
‘‘(i) UNEMPLOYED
VETERAN.—The 
term ‘unemployed veteran’ means any vet-
eran (as defined in paragraph (3)(B), de-
termined without regard to clause (ii) 
thereof) who is certified by the designated 
local agency as— 
‘‘(I) having been discharged or 
released from active duty in the 
Armed Forces during 2008, 2009, or 
2010, and 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00485
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
486 
AMDT. NO. 98 
‘‘(II) being in receipt of unem-
ployment compensation under State or 
Federal law for not less than 4 weeks 
during the 1-year period ending on 
the hiring date. 
‘‘(ii) DISCONNECTED
YOUTH.—The 
term ‘disconnected youth’ means any indi-
vidual who is certified by the designated 
local agency— 
‘‘(I) as having attained age 16 
but not age 25 on the hiring date, 
‘‘(II) as not regularly attending 
any secondary, technical, or post-sec-
ondary school during the 6-month pe-
riod preceding the hiring date, 
‘‘(III) as not regularly employed 
during such 6-month period, and 
‘‘(IV) as not readily employable 
by reason of lacking a sufficient num-
ber of basic skills.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to individuals who begin work for 
the employer after December 31, 2008. 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00486
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
487 
AMDT. NO. 98 
PART IV—CANCELLATION OF INDEBTEDNESS 
SEC. 1231. DEFERRAL AND RATABLE INCLUSION OF IN-
COME ARISING FROM INDEBTEDNESS DIS-
CHARGED BY THE REPURCHASE OF A DEBT 
INSTRUMENT. 
(a) IN GENERAL.—Section 108 (relating to income 
from discharge of indebtedness) is amended by adding at 
the end the following new subsection: 
‘‘(i) DEFERRAL AND RATABLE INCLUSION OF IN-
COME ARISING FROM INDEBTEDNESS DISCHARGED BY 
THE REPURCHASE OF A DEBT INSTRUMENT.— 
‘‘(1) IN
GENERAL.—Notwithstanding section 
61, income from the discharge of indebtedness in 
connection with the repurchase of a debt instrument 
after December 31, 2008, and before January 1, 
2011, shall be includible in gross income ratably 
over the 8-taxable-year period beginning with— 
‘‘(A) in the case of a repurchase occurring 
in 2009, the second taxable year following the 
taxable year in which the repurchase occurs, 
and 
‘‘(B) in the case of a repurchase occurring 
in 2010, the taxable year following the taxable 
year in which the repurchase occurs. 
‘‘(2) DEBT INSTRUMENT.—For purposes of this 
subsection, the term ‘debt instrument’ means a 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00487
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
488 
AMDT. NO. 98 
bond, debenture, note, certificate, or any other in-
strument or contractual arrangement constituting 
indebtedness 
(within 
the 
meaning 
of 
section 
1275(a)(1)). 
‘‘(3) REPURCHASE.—For purposes of this sub-
section, the term ‘repurchase’ means, with respect to 
any debt instrument, a cash purchase of the debt in-
strument by— 
‘‘(A) the debtor which issued the debt in-
strument, or 
‘‘(B) any person related to such debtor. 
For purposes of subparagraph (B), the determina-
tion of whether a person is related to another person 
shall be made in the same manner as under sub-
section (e)(4). 
‘‘(4) AUTHORITY
TO
PRESCRIBE
REGULA-
TIONS.—The Secretary may prescribe such regula-
tions as may be necessary or appropriate for pur-
poses of applying this subsection.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to discharges in taxable years end-
ing after December 31, 2008. 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00488
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
489 
AMDT. NO. 98 
PART V—QUALIFIED SMALL BUSINESS STOCK 
SEC. 1241. SPECIAL RULES APPLICABLE TO QUALIFIED 
SMALL BUSINESS STOCK FOR 2009 AND 2010. 
(a) IN GENERAL.—Section 1202(a) is amended by 
adding at the end the following new paragraph: 
‘‘(3) SPECIAL RULES FOR 2009 AND 2010.—In 
the case of qualified small business stock acquired 
after the date of the enactment of this paragraph 
and before January 1, 2011— 
‘‘(A) paragraph (1) shall be applied by 
substituting ‘75 percent’ for ‘50 percent’, and 
‘‘(B) paragraph (2) shall not apply.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to stock acquired after the date 
of the enactment of this Act. 
PART VI—PARITY FOR TRANSPORTATION 
FRINGE BENEFITS 
SEC. 1251. INCREASED EXCLUSION AMOUNT FOR COM-
MUTER TRANSIT BENEFITS AND TRANSIT 
PASSES. 
(a) IN GENERAL.—Paragraph (2) of section 132(f) 
is amended by adding at the end the following flush sen-
tence: 
‘‘In the case of any month beginning on or after the 
date of the enactment of this sentence and before 
January 1, 2011, subparagraph (A) shall be applied 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00489
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
490 
AMDT. NO. 98 
as if the dollar amount therein were the same as the 
dollar amount under subparagraph (B) (as in effect 
for such month).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to months beginning on or after 
the date of the enactment of this section. 
PART VII—S CORPORATIONS 
SEC. 1261. TEMPORARY REDUCTION IN RECOGNITION PE-
RIOD FOR BUILT-IN GAINS TAX. 
(a) IN GENERAL.—Paragraph (7) of section 1374(d) 
(relating to definitions and special rules) is amended to 
read as follows: 
‘‘(7) RECOGNITION PERIOD.— 
‘‘(A) IN GENERAL.—The term ‘recognition 
period’ means the 10-year period beginning 
with the 1st day of the 1st taxable year for 
which the corporation was an S corporation. 
‘‘(B) SPECIAL RULE FOR 2009 AND 2010.— 
In the case of any taxable year beginning in 
2009 or 2010, no tax shall be imposed on the 
net unrecognized built-in gain of an S corpora-
tion if the 7th taxable year in the recognition 
period preceded such taxable year. The pre-
ceding sentence shall be applied separately with 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00490
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
491 
AMDT. NO. 98 
respect to any asset to which paragraph (8) ap-
plies. 
‘‘(C) SPECIAL RULE FOR DISTRIBUTIONS 
TO SHAREHOLDERS.—For purposes of applying 
this section to any amount includible in income 
by reason of distributions to shareholders pur-
suant to section 593(e)— 
‘‘(i) subparagraph (A) shall be applied 
without regard to the phrase ‘10-year’, and 
‘‘(ii) subparagraph (B) shall not 
apply.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
PART VIII—BROADBAND INCENTIVES 
SEC. 1271. BROADBAND INTERNET ACCESS TAX CREDIT. 
(a) IN GENERAL.—Subpart E of part IV of chapter 
1 of the Internal Revenue Code of 1986 (relating to rules 
for computing investment credit), as amended by this Act, 
is amended by inserting after section 48C the following 
new section: 
‘‘SEC. 48D. BROADBAND INTERNET ACCESS CREDIT. 
‘‘(a) GENERAL RULE.—For purposes of section 46, 
the broadband credit for any taxable year is the sum of— 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00491
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
492 
AMDT. NO. 98 
‘‘(1) the current generation broadband credit, 
plus 
‘‘(2) the next generation broadband credit. 
‘‘(b) CURRENT GENERATION BROADBAND CREDIT; 
NEXT GENERATION BROADBAND CREDIT.—For purposes 
of this section— 
‘‘(1) 
CURRENT
GENERATION
BROADBAND 
CREDIT.—The current generation broadband credit 
for any taxable year is equal to 10 percent (20 per-
cent in the case of qualified subscribers which are 
unserved subscribers) of the qualified broadband ex-
penditures incurred with respect to qualified equip-
ment providing current generation broadband serv-
ices to qualified subscribers and taken into account 
with respect to such taxable year. 
‘‘(2) NEXT
GENERATION
BROADBAND
CRED-
IT.—The next generation broadband credit for any 
taxable year is equal to 20 percent of the qualified 
broadband expenditures incurred with respect to 
qualified 
equipment 
providing 
next 
generation 
broadband services to qualified subscribers and 
taken into account with respect to such taxable year. 
‘‘(c) WHEN
EXPENDITURES
TAKEN
INTO
AC-
COUNT.—For purposes of this section— 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00492
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
493 
AMDT. NO. 98 
‘‘(1) IN
GENERAL.—Qualified broadband ex-
penditures with respect to qualified equipment shall 
be taken into account with respect to the first tax-
able year in which— 
‘‘(A) current generation broadband services 
are provided through such equipment to quali-
fied subscribers, or 
‘‘(B) next generation broadband services 
are provided through such equipment to quali-
fied subscribers. 
‘‘(2) LIMITATION.— 
‘‘(A) IN
GENERAL.—Qualified broadband 
expenditures shall be taken into account under 
paragraph (1) only with respect to qualified 
equipment— 
‘‘(i) the original use of which com-
mences with the taxpayer, and 
‘‘(ii) which is placed in service, after 
December 31, 2008, and before January 1, 
2011. 
‘‘(B) SALE-LEASEBACKS.—For purposes of 
subparagraph (A), if property— 
‘‘(i) is originally placed in service 
after December 31, 2008, by any person, 
and 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00493
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
494 
AMDT. NO. 98 
‘‘(ii) sold and leased back by such per-
son within 3 months after the date such 
property was originally placed in service, 
such property shall be treated as originally 
placed in service not earlier than the date on 
which such property is used under the leaseback 
referred to in clause (ii). 
‘‘(d) SPECIAL ALLOCATION RULES FOR CURRENT 
GENERATION BROADBAND SERVICES.—For purposes of 
determining the current generation broadband credit 
under subsection (a)(1) with respect to qualified equip-
ment through which current generation broadband serv-
ices are provided, if the qualified equipment is capable of 
serving both qualified subscribers and other subscribers, 
the qualified broadband expenditures shall be multiplied 
by a fraction— 
‘‘(1) the numerator of which is the sum of the 
number of potential qualified subscribers within the 
rural areas and the underserved areas and the 
unserved areas which the equipment is capable of 
serving with current generation broadband services, 
and 
‘‘(2) the denominator of which is the total po-
tential subscriber population of the area which the 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00494
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
495 
AMDT. NO. 98 
equipment is capable of serving with current genera-
tion broadband services. 
‘‘(e) DEFINITIONS.—For purposes of this section— 
‘‘(1) ANTENNA.—The term ‘antenna’ means 
any device used to transmit or receive signals 
through the electromagnetic spectrum, including sat-
ellite equipment. 
‘‘(2) CABLE OPERATOR.—The term ‘cable oper-
ator’ has the meaning given such term by section 
602(5) of the Communications Act of 1934 (47 
U.S.C. 522(5)). 
‘‘(3) COMMERCIAL
MOBILE
SERVICE
CAR-
RIER.—The term ‘commercial mobile service carrier’ 
means any person authorized to provide commercial 
mobile radio service as defined in section 20.3 of 
title 47, Code of Federal Regulations. 
‘‘(4) CURRENT GENERATION BROADBAND SERV-
ICE.—The term ‘current generation broadband serv-
ice’ means the transmission of signals at a rate of 
at least 5,000,000 bits per second to the subscriber 
and at least 1,000,000 bits per second from the sub-
scriber (at least 3,000,000 bits per second to the 
subscriber and at least 768,000 bits per second from 
the subscriber in the case of service through radio 
transmission of energy). 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00495
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
496 
AMDT. NO. 98 
‘‘(5) MULTIPLEXING
OR
DEMULTIPLEXING.— 
The term ‘multiplexing’ means the transmission of 2 
or more signals over a single channel, and the term 
‘demultiplexing’ means the separation of 2 or more 
signals previously combined by compatible multi-
plexing equipment. 
‘‘(6) NEXT
GENERATION
BROADBAND
SERV-
ICE.—The term ‘next generation broadband service’ 
means the transmission of signals at a rate of at 
least 100,000,000 bits per second to the subscriber 
(or its equivalent when the data rate is measured be-
fore being compressed for transmission) and at least 
20,000,000 bits per second from the subscriber (or 
its equivalent as so measured). 
‘‘(7) 
NONRESIDENTIAL
SUBSCRIBER.—The 
term ‘nonresidential subscriber’ means any person 
who purchases broadband services which are deliv-
ered to the permanent place of business of such per-
son. 
‘‘(8) OPEN
VIDEO
SYSTEM
OPERATOR.—The 
term ‘open video system operator’ means any person 
authorized to provide service under section 653 of 
the Communications Act of 1934 (47 U.S.C. 573). 
‘‘(9) OTHER
WIRELESS
CARRIER.—The term 
‘other wireless carrier’ means any person (other than 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00496
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
497 
AMDT. NO. 98 
a telecommunications carrier, commercial mobile 
service carrier, cable operator, open video system op-
erator, or satellite carrier) providing current genera-
tion 
broadband 
services 
or 
next 
generation 
broadband service to subscribers through the radio 
transmission of energy. 
‘‘(10) PACKET SWITCHING.—The term ‘packet 
switching’ means controlling or routing the path of 
a digitized transmission signal which is assembled 
into packets or cells. 
‘‘(11) PROVIDER.—The term ‘provider’ means, 
with respect to any qualified equipment any— 
‘‘(A) cable operator, 
‘‘(B) commercial mobile service carrier, 
‘‘(C) open video system operator, 
‘‘(D) satellite carrier, 
‘‘(E) telecommunications carrier, or 
‘‘(F) other wireless carrier, 
providing current generation broadband services or 
next generation broadband services to subscribers 
through such qualified equipment. 
‘‘(12) PROVISION
OF
SERVICES.—A provider 
shall be treated as providing services to 1 or more 
subscribers if— 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00497
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
559 
AMDT. NO. 98 
(4) LIMITATION.—A payment under this section 
shall not be made— 
(A) in the case of an individual entitled to 
a benefit specified in paragraph (1)(B)(i) or 
paragraph (1)(B)(ii)(VIII) if, for the most re-
cent month of such individual’s entitlement in 
the 3-month period described in paragraph (1), 
such individual’s benefit under such paragraph 
was not payable by reason of subsection (x) or 
(y) of section 202 the Social Security Act (42 
U.S.C. 402) or section 1129A of such Act (42 
U.S.C. 1320a-8a); 
(B) in the case of an individual entitled to 
a benefit specified in paragraph (1)(B)(iii) if, 
for the most recent month of such individual’s 
entitlement in the 3 month period described in 
paragraph (1), such individual’s benefit under 
such paragraph was not payable, or was re-
duced, by reason of section 1505, 5313, or 
5313B of title 38, United States Code; 
(C) in the case of an individual entitled to 
a benefit specified in paragraph (1)(C) if, for 
such most recent month, such individual’s ben-
efit under such paragraph was not payable by 
reason of subsection (e)(1)(A) or (e)(4) of sec-
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00559
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS