IIB 
111TH CONGRESS 
2D SESSION 
H. R. 4849 
IN THE SENATE OF THE UNITED STATES 
MARCH 25, 2010 
Received 
MARCH 26 (legislative day, MARCH 25), 2010 
Read twice and referred to the Committee on Finance 
AN ACT 
To amend the Internal Revenue Code of 1986 to provide 
tax incentives for small business job creation, extend 
the Build America Bonds program, provide other infra-
structure job creation tax incentives, and for other pur-
poses. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE; ETC. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Small Business and Infrastructure Jobs Tax Act of 
2010’’. 
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; etc. 
TITLE I—SMALL BUSINESS TAX INCENTIVES 
Subtitle A—General Provisions 
Sec. 101. Temporary exclusion of 100 percent of gain on certain small business 
stock. 
Subtitle B—Limitations and Reporting on Certain Penalties 
Sec. 111. Limitation on penalty for failure to disclose certain information. 
Sec. 112. Annual reports on penalties and certain other enforcement actions. 
Subtitle C—Other Provisions 
Sec. 121. Nonrecourse small business investment company loans from the Small 
Business Administration treated as amounts at risk. 
Sec. 122. Increase in amount allowed as deduction for start-up expenditures. 
TITLE II—INFRASTRUCTURE INCENTIVES 
Sec. 201. Extension of Build America Bonds. 
Sec. 202. Exempt-facility bonds for sewage and water supply facilities. 
Sec. 203. Extension of exemption from alternative minimum tax treatment for 
certain tax-exempt bonds. 
Sec. 204. Elective payments in lieu of low income housing credits. 
Sec. 205. Extension and additional allocations of recovery zone bond authority. 
Sec. 206. Allowance of new markets tax credit against alternative minimum 
tax. 
TITLE III—REVENUE PROVISIONS 
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Sec. 301. Limitation on treaty benefits for certain deductible payments. 
Sec. 302. Treatment of securities of a controlled corporation exchanged for as-
sets in certain reorganizations. 
Sec. 303. Repeal of special rules for interest and dividends received from per-
sons meeting the 80-percent foreign business requirements. 
Sec. 304. Information reporting for rental property expense payments. 
Sec. 305. Application of levy to payments to Federal vendors relating to prop-
erty. 
Sec. 306. Application of continuous levy to tax liabilities of certain Federal con-
tractors. 
Sec. 307. Required minimum 10-year term, etc., for grantor retained annuity 
trusts. 
Sec. 308. Increase in information return penalties. 
Sec. 309. Crude tall oil ineligible for cellulosic biofuel producer credit. 
Sec. 310. Time for payment of corporate estimated taxes. 
TITLE IV—EXTENSION OF EMERGENCY CONTINGENCY FUND 
FOR STATE TEMPORARY ASSISTANCE FOR NEEDY FAMILIES 
PROGRAMS 
Sec. 401. One-year extension of the Emergency Contingency Fund for State 
Temporary Assistance for Needy Families Programs. 
TITLE I—SMALL BUSINESS TAX 
INCENTIVES 
Subtitle A—General Provisions 
SEC. 101. TEMPORARY EXCLUSION OF 100 PERCENT OF 
GAIN ON CERTAIN SMALL BUSINESS STOCK. 
(a) IN GENERAL.—Subsection (a) of section 1202 is 
amended by adding at the end the following new para-
graph: 
‘‘(4) SPECIAL
100
PERCENT
EXCLUSION.—In 
the case of qualified small business stock acquired 
after March 15, 2010, and before January 1, 
2012— 
‘‘(A) paragraph (1) shall be applied by 
substituting ‘100 percent’ for ‘50 percent’, 
‘‘(B) paragraph (2) shall not apply, and 
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‘‘(C) paragraph (7) of section 57(a) shall 
not apply.’’. 
(b) CONFORMING AMENDMENTS.—Paragraph (3) of 
section 1202(a) is amended— 
(1) by striking ‘‘after the date of the enactment 
of this paragraph and before January 1, 2011’’ and 
inserting ‘‘after February 17, 2009, and before 
March 16, 2010’’; and 
(2) by striking ‘‘SPECIAL RULES FOR 2009 AND 
2010’’ in the heading and inserting ‘‘SPECIAL
PERCENT EXCLUSION’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to stock acquired after March 15, 
2010. 
Subtitle B—Limitations and 
Reporting on Certain Penalties 
SEC. 111. LIMITATION ON PENALTY FOR FAILURE TO DIS-
CLOSE CERTAIN INFORMATION. 
(a) IN GENERAL.—Subsection (b) of section 6707A 
is amended to read as follows: 
‘‘(b) AMOUNT OF PENALTY.— 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, the amount of the penalty 
under subsection (a) with respect to any reportable 
transaction shall be 75 percent of the decrease in 
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(1) Any action taken under section 330(b) of 
title 31, United States Code, with respect to any re-
portable transaction (as defined in section 6707A(c) 
of the Internal Revenue Code of 1986). 
(2) Any extension of the time for assessment of 
tax enforced, or assessment of any amount under 
such an extension, under paragraph (10) of section 
6501(c) of the Internal Revenue Code of 1986. 
(c) DATE OF REPORT.—The first report required 
under subsection (a) shall be submitted not later than De-
cember 31, 2010. 
Subtitle C—Other Provisions 
SEC. 121. NONRECOURSE SMALL BUSINESS INVESTMENT 
COMPANY LOANS FROM THE SMALL BUSI-
NESS 
ADMINISTRATION 
TREATED 
AS 
AMOUNTS AT RISK. 
(a) IN GENERAL.—Subparagraph (B) of section 
465(b)(6) is amended to read as follows: 
‘‘(B) QUALIFIED
NONRECOURSE
FINANC-
ING.—For purposes of this paragraph— 
‘‘(i) IN GENERAL.—The term ‘quali-
fied nonrecourse financing’ means any fi-
nancing— 
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‘‘(I) which is qualified real prop-
erty financing or qualified SBIC fi-
nancing, 
‘‘(II) except to the extent pro-
vided in regulations, with respect to 
which no person is personally liable 
for repayment, and 
‘‘(III) which is not convertible 
debt. 
‘‘(ii) QUALIFIED REAL PROPERTY FI-
NANCING.—The term ‘qualified real prop-
erty 
financing’ 
means 
any 
financing 
which— 
‘‘(I) is borrowed by the taxpayer 
with respect to the activity of holding 
real property, 
‘‘(II) is secured by real property 
used in such activity, and 
‘‘(III) is borrowed by the tax-
payer from a qualified person or rep-
resents a loan from any Federal, 
State, or local government or instru-
mentality thereof, or is guaranteed by 
any Federal, State, or local govern-
ment. 
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‘‘(iii) QUALIFIED SBIC FINANCING.— 
The term ‘qualified SBIC financing’ means 
any financing which— 
‘‘(I) is borrowed by a small busi-
ness investment company (within the 
meaning of section 301 of the Small 
Business Investment Act of 1958), 
and 
‘‘(II) is borrowed from, or guar-
anteed by, the Small Business Admin-
istration under the authority of sec-
tion 303(b) of such Act.’’. 
(b) CONFORMING AMENDMENTS.—Subparagraph (A) 
of section 465(b)(6) is amended— 
(1) by striking ‘‘in the case of an activity of 
holding real property,’’; and 
(2) by striking ‘‘which is secured by real prop-
erty used in such activity’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to loans and guarantees made after 
the date of the enactment of this Act. 
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SEC. 122. INCREASE IN AMOUNT ALLOWED AS DEDUCTION 
FOR START-UP EXPENDITURES. 
(a) IN GENERAL.—Subsection (b) of section 195 is 
amended by adding at the end the following new para-
graph: 
‘‘(3) INCREASED
LIMITATION
FOR
TAXABLE 
YEARS BEGINNING IN 2010 OR 2011.—In the case of 
any taxable year beginning in 2010 or 2011, para-
graph (1)(A)(ii) shall be applied— 
‘‘(A) 
by 
substituting 
‘$20,000’ 
for 
‘$5,000’, and 
‘‘(B) 
by 
substituting 
‘$75,000’ 
for 
‘$50,000’.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
TITLE II—INFRASTRUCTURE 
INCENTIVES 
SEC. 201. EXTENSION OF BUILD AMERICA BONDS. 
(a) IN GENERAL.—Subparagraph (B) of section 
54AA(d)(1) is amended by striking ‘‘January 1, 2011’’ 
and inserting ‘‘April 1, 2013’’. 
(b) EXTENSION OF PAYMENTS TO ISSUERS.— 
(1) IN
GENERAL.—Subsection (a) of section 
6431 is amended by striking ‘‘January 1, 2011’’ and 
inserting ‘‘April 1, 2013’’. 
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(2) CONFORMING
AMENDMENTS.—Subsection 
(g) of section 54AA is amended— 
(A) by striking ‘‘January 1, 2011’’ and in-
serting ‘‘April 1, 2013’’; and 
(B) 
by 
striking 
‘‘QUALIFIED
BONDS 
ISSUED BEFORE 2011’’ in the heading and in-
serting ‘‘CERTAIN QUALIFIED BONDS’’. 
(c) REDUCTION IN PERCENTAGE OF PAYMENTS TO 
ISSUERS.—Subsection (b) of section 6431 is amended— 
(1) by striking ‘‘The Secretary’’ and inserting 
the following: 
‘‘(1) IN GENERAL.—The Secretary’’; 
(2) by striking ‘‘35 percent’’ and inserting ‘‘the 
applicable percentage’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(2) APPLICABLE PERCENTAGE.—For purposes 
of this subsection, the term ‘applicable percentage’ 
means the percentage determined in accordance with 
the following table: 
‘‘In the case of a qualified bond issued during cal-
endar year: 
The applicable percentage 
is: 
2009 or 2010 ............................................................
35 percent 
2011 ..........................................................................
33 percent 
2012 ..........................................................................
31 percent 
2013 ..........................................................................
30 percent’’. 
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(d) CURRENT
REFUNDINGS
PERMITTED.—Sub-
section (g) of section 54AA is amended by adding at the 
end the following new paragraph: 
‘‘(3) TREATMENT
OF
CURRENT
REFUNDING 
BONDS.— 
‘‘(A) IN GENERAL.—For purposes of this 
subsection, the term ‘qualified build America 
bond’ includes any bond (or series of bonds) 
issued to refund a qualified build America bond 
if— 
‘‘(i) the average maturity date of the 
issue of which the refunding bond is a part 
is not later than the average maturity date 
of the bonds to be refunded by such issue, 
‘‘(ii) the amount of the refunding 
bond does not exceed the outstanding 
amount of the refunded bond, and 
‘‘(iii) the refunded bond is redeemed 
not later than 90 days after the date of the 
issuance of the refunding bond. 
‘‘(B) APPLICABLE
PERCENTAGE.—In the 
case of a refunding bond referred to in subpara-
graph (A), the applicable percentage with re-
spect to such bond under section 6431(b) shall 
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