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(3) APPROPRIATIONS.—There is hereby appro-
priated to the Secretary of the Treasury such sums as 
may be necessary to carry out this subsection. 
(c) CLERICAL AMENDMENT.—The table of sections for 
part VI of subchapter B of chapter 1 is amended by adding 
at the end the following new item: 
‘‘Sec. 179F. Election to expense manufacturing facilities producing plug-in elec-
tric drive motor vehicle and components.’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after the date 
of the enactment of this Act. 
Subtitle E—Economic Recovery 
Tools 
SEC. 1401. RECOVERY ZONE BONDS. 
(a) IN GENERAL.—Subchapter Y of chapter 1 is 
amended by adding at the end the following new part: 
‘‘PART III—RECOVERY ZONE BONDS 
‘‘Sec. 1400U–1. Allocation of recovery zone bonds. 
‘‘Sec. 1400U–2. Recovery zone economic development bonds. 
‘‘Sec. 1400U–3. Recovery zone facility bonds. 
‘‘SEC. 1400U–1. ALLOCATION OF RECOVERY ZONE BONDS. 
‘‘(a) ALLOCATIONS.— 
‘‘(1) IN GENERAL.—The Secretary shall allocate 
the national recovery zone economic development bond 
limitation and the national recovery zone facility 
bond limitation among the States— 
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‘‘(A) by allocating 1 percent of each such 
limitation to each State, and 
‘‘(B) by allocating the remainder of each 
such limitation among the States in the propor-
tion that each State’s 2008 State employment de-
cline bears to the aggregate of the 2008 State em-
ployment declines for all of the States. 
‘‘(2) 2008 STATE EMPLOYMENT DECLINE.—For 
purposes of this subsection, the term ‘2008 State em-
ployment decline’ means, with respect to any State, 
the excess (if any) of— 
‘‘(A) the number of individuals employed in 
such State determined for December 2007, over 
‘‘(B) the number of individuals employed in 
such State determined for December 2008. 
‘‘(3) ALLOCATIONS BY STATES.— 
‘‘(A) IN GENERAL.—Each State with respect 
to which an allocation is made under paragraph 
(1) shall reallocate such allocation among the 
counties and large municipalities in such State 
in the proportion the each such county’s or mu-
nicipality’s 2008 employment decline bears to 
the aggregate of the 2008 employment declines 
for all the counties and municipalities in such 
State. 
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‘‘(B) LARGE
MUNICIPALITIES.—For pur-
poses of subparagraph (A), the term ‘large mu-
nicipality’ means a municipality with a popu-
lation of more than 100,000. 
‘‘(C) DETERMINATION OF LOCAL EMPLOY-
MENT
DECLINES.—For purposes of this para-
graph, the employment decline of any munici-
pality or county shall be determined in the same 
manner as determining the State employment 
decline under paragraph (2), except that in the 
case of a municipality any portion of which is 
in a county, such portion shall be treated as part 
of such municipality and not part of such coun-
ty. 
‘‘(4) NATIONAL LIMITATIONS.— 
‘‘(A) RECOVERY ZONE ECONOMIC DEVELOP-
MENT BONDS.—There is a national recovery zone 
economic 
development 
bond 
limitation 
of 
$5,000,000,000. 
‘‘(B) RECOVERY ZONE FACILITY BONDS.— 
There is a national recovery zone facility bond 
limitation of $10,000,000,000. 
‘‘(b) RECOVERY ZONE.—For purposes of this part, the 
term ‘recovery zone’ means— 
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‘‘(1) any area designated by the issuer as having 
significant poverty, unemployment, rate of home fore-
closures, or general distress, and 
‘‘(2) any area for which a designation as an em-
powerment zone or renewal community is in effect. 
‘‘SEC. 1400U–2. RECOVERY ZONE ECONOMIC DEVELOPMENT 
BONDS. 
‘‘(a) IN GENERAL.—In the case of a recovery zone eco-
nomic development bond— 
‘‘(1) such bond shall be treated as a qualified 
bond for purposes of section 6431, and 
‘‘(2) subsection (b) of such section shall be ap-
plied by substituting ‘40 percent’ for ‘35 percent’. 
‘‘(b) RECOVERY
ZONE
ECONOMIC
DEVELOPMENT 
BOND.— 
‘‘(1) IN GENERAL.—For purposes of this section, 
the term ‘recovery zone economic development bond’ 
means any build America bond (as defined in section 
54AA(d)) issued before January 1, 2011, as part of 
issue if— 
‘‘(A) 100 percent of the available project 
proceeds (as defined in section 54A) of such issue 
are to be used for one or more qualified economic 
development purposes, and 
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‘‘(B) the issuer designates such bond for 
purposes of this section. 
‘‘(2) LIMITATION ON AMOUNT OF BONDS DES-
IGNATED.—The maximum aggregate face amount of 
bonds which may be designated by any issuer under 
paragraph (1) shall not exceed the amount of the re-
covery zone economic development bond limitation al-
located to such issuer under section 1400U–1. 
‘‘(c) QUALIFIED
ECONOMIC
DEVELOPMENT
PUR-
POSE.—For purposes of this section, the term ‘qualified eco-
nomic development purpose’ means expenditures for pur-
poses of promoting development or other economic activity 
in a recovery zone, including— 
‘‘(1) capital expenditures paid or incurred with 
respect to property located in such zone, 
‘‘(2) expenditures for public infrastructure and 
construction of public facilities, and 
‘‘(3) expenditures for job training and edu-
cational programs. 
‘‘SEC. 1400U–3. RECOVERY ZONE FACILITY BONDS. 
‘‘(a) IN GENERAL.—For purposes of part IV of sub-
chapter B (relating to tax exemption requirements for State 
and local bonds), the term ‘exempt facility bond’ includes 
any recovery zone facility bond. 
‘‘(b) RECOVERY ZONE FACILITY BOND.— 
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‘‘(1) IN GENERAL.—For purposes of this section, 
the term ‘recovery zone facility bond’ means any bond 
issued as part of an issue if— 
‘‘(A) 95 percent or more of the net proceeds 
(as defined in section 150(a)(3)) of such issue 
are to be used for recovery zone property, 
‘‘(B) such bond is issued before January 1, 
2011, and 
‘‘(C) the issuer designates such bond for 
purposes of this section. 
‘‘(2) LIMITATION ON AMOUNT OF BONDS DES-
IGNATED.—The maximum aggregate face amount of 
bonds which may be designated by any issuer under 
paragraph (1) shall not exceed the amount of recovery 
zone facility bond limitation allocated to such issuer 
under section 1400U–1. 
‘‘(c) RECOVERY ZONE PROPERTY.—For purposes of 
this section— 
‘‘(1) IN
GENERAL.—The term ‘recovery zone 
property’ means any property to which section 168 
applies (or would apply but for section 179) if— 
‘‘(A) such property was acquired by the tax-
payer by purchase (as defined in section 
179(d)(2)) after the date on which the designa-
tion of the recovery zone took effect, 
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‘‘(B) the original use of which in the recov-
ery zone commences with the taxpayer, and 
‘‘(C) substantially all of the use of which is 
in the recovery zone and is in the active conduct 
of a qualified business by the taxpayer in such 
zone. 
‘‘(2) QUALIFIED BUSINESS.—The term ‘qualified 
business’ means any trade or business except that— 
‘‘(A) the rental to others of real property lo-
cated in a recovery zone shall be treated as a 
qualified business only if the property is not res-
idential rental property (as defined in section 
168(e)(2)), and 
‘‘(B) such term shall not include any trade 
or business consisting of the operation of any fa-
cility described in section 144(c)(6)(B). 
‘‘(3) SPECIAL RULES FOR SUBSTANTIAL RENOVA-
TIONS AND SALE-LEASEBACK.—Rules similar to the 
rules of subsections (a)(2) and (b) of section 1397D 
shall apply for purposes of this subsection. 
‘‘(d) NONAPPLICATION OF CERTAIN RULES.—Sections 
146 (relating to volume cap) and 147(d) (relating to acqui-
sition of existing property not permitted) shall not apply 
to any recovery zone facility bond.’’. 
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(b) CLERICAL AMENDMENT.—The table of parts for 
subchapter Y of chapter 1 of such Code is amended by add-
ing at the end the following new item: 
‘‘PART III. RECOVERY ZONE BONDS.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to obligations issued after the date of 
the enactment of this Act. 
SEC. 1402. TRIBAL ECONOMIC DEVELOPMENT BONDS. 
(a) IN GENERAL.—Section 7871 is amended by adding 
at the end the following new subsection: 
‘‘(f) TRIBAL ECONOMIC DEVELOPMENT BONDS.— 
‘‘(1) ALLOCATION OF LIMITATION.— 
‘‘(A) IN GENERAL.—The Secretary shall al-
locate the national tribal economic development 
bond limitation among the Indian tribal govern-
ments in such manner as the Secretary, in con-
sultation with the Secretary of the Interior, de-
termines appropriate. 
‘‘(B) NATIONAL
LIMITATION.—There is a 
national tribal economic development bond limi-
tation of $2,000,000,000. 
‘‘(2) BONDS TREATED AS EXEMPT FROM TAX.— 
In the case of a tribal economic development bond— 
‘‘(A) notwithstanding subsection (c), such 
bond shall be treated for purposes of this title in 
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the same manner as if such bond were issued by 
a State, 
‘‘(B) the Indian tribal government issuing 
such bond and any instrumentality of such In-
dian tribal government shall be treated as a 
State for purposes of section 141, and 
‘‘(C) section 146 shall not apply. 
‘‘(3) TRIBAL ECONOMIC DEVELOPMENT BOND.— 
‘‘(A) IN
GENERAL.—For purposes of this 
section, the term ‘tribal economic development 
bond’ means any bond issued by an Indian trib-
al government— 
‘‘(i) the interest on which would be ex-
empt from tax under section 103 if issued 
by a State or local government, and 
‘‘(ii) which is designated by the Indian 
tribal government as a tribal economic de-
velopment bond for purposes of this sub-
section. 
‘‘(B) EXCEPTIONS.—The term tribal eco-
nomic development bond shall not include any 
bond issued as part of an issue if any portion 
of the proceeds of such issue are used to fi-
nance— 
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‘‘(i) any portion of a building in 
which class II or class III gaming (as de-
fined in section 4 of the Indian Gaming 
Regulatory Act) is conducted or housed or 
any other property actually used in the con-
duct of such gaming, or 
‘‘(ii) any facility located outside the 
Indian reservation (as defined in section 
168(j)(6)). 
‘‘(C) LIMITATION
ON
AMOUNT
OF
BONDS 
DESIGNATED.—The maximum aggregate face 
amount of bonds which may be designated by 
any Indian tribal government under subpara-
graph (A) shall not exceed the amount of na-
tional tribal economic development bond limita-
tion allocated to such government under para-
graph (1).’’. 
(b) STUDY.—The Secretary of the Treasury, or the Sec-
retary’s delegate, shall conduct a study of the effects of the 
amendment made by subsection (a). 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 report to 
Congress on the results of the study conducted under this 
paragraph, including the Secretary’s recommendations re-
garding such amendment. 
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(c) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply to obligations issued after the date 
of the enactment of this Act. 
SEC. 1403. MODIFICATIONS TO NEW MARKETS TAX CREDIT. 
(a) INCREASE IN NATIONAL LIMITATION.— 
(1) IN GENERAL.—Section 45D(f)(1) is amend-
ed— 
(A) by striking ‘‘and’’ at the end of sub-
paragraph (C), 
(B) by striking ‘‘, 2007, 2008, and 2009.’’ 
in subparagraph (D), and inserting ‘‘and 
2007,’’, and 
(C) by adding at the end the following new 
subparagraphs: 
‘‘(E) $5,000,000,000 for 2008, and 
‘‘(F) $5,000,000,000 for 2009.’’. 
(2) SPECIAL
RULE
FOR
ALLOCATION
OF
IN-
CREASED 2008 LIMITATION.—The amount of the in-
crease in the new markets tax credit limitation for 
calendar year 2008 by reason of the amendments 
made by subsection (a) shall be allocated in accord-
ance with section 45D(f)(2) of the Internal Revenue 
Code of 1986 to qualified community development en-
tities (as defined in section 45D(c) of such Code) 
which— 
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(A) submitted an allocation application 
with respect to calendar year 2008, and 
(B)(i) did not receive an allocation for such 
calendar year, or 
(ii) received an allocation for such calendar 
year in an amount less than the amount re-
quested in the allocation application. 
(b) ALTERNATIVE MINIMUM TAX RELIEF.— 
(1) IN GENERAL.—Section 38(c)(4)(B) is amend-
ed by redesignating clauses (v) through (viii) as 
clauses (vi) through (ix), respectively, and by insert-
ing after clause (iv) the following new clause: 
‘‘(v) the credit determined under sec-
tion 45D to the extent that such credit is at-
tributable to a qualified equity investment 
which is designated as such under section 
45D(b)(1)(C) pursuant to an allocation of 
the new markets tax credit limitation for 
calendar year 2009,’’. 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to credits determined 
under section 45D of the Internal Revenue Code of 
1986 in taxable years ending after the date of the en-
actment of this Act, and to carrybacks of such credits. 
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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. 
(a) IN GENERAL.—Subsection (b) of section 265 is 
amended by adding at the end the following new paragraph: 
‘‘(7) DE MINIMIS EXCEPTION FOR BONDS ISSUED 
DURING 2009 OR 2010.— 
‘‘(A) IN GENERAL.—In applying paragraph 
(2)(A), there shall not be taken into account tax- 
exempt obligations issued during 2009 or 2010. 
‘‘(B) LIMITATION.—The amount of tax-ex-
empt obligations not taken into account by rea-
son of subparagraph (A) shall not exceed 2 per-
cent of the amount determined under paragraph 
(2)(B). 
‘‘(C) REFUNDINGS.—For purposes of this 
paragraph, a refunding bond (whether a current 
or advance refunding) shall be treated as issued 
on the date of the issuance of the refunded bond 
(or in the case of a series of refundings, the 
original bond).’’. 
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(b) TREATMENT AS FINANCIAL INSTITUTION PREF-
ERENCE ITEM.—Clause (iv) of section 291(e)(1)(B) is 
amended by adding at the end the following: ‘‘That portion 
of any obligation not taken into account under paragraph 
(2)(A) of section 265(b) by reason of paragraph (7) of such 
section shall be treated for purposes of this section as having 
been acquired on August 7, 1986.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to obligations issued after December 31, 
2008. 
SEC. 1502. MODIFICATION OF SMALL ISSUER EXCEPTION TO 
TAX-EXEMPT INTEREST EXPENSE ALLOCA-
TION RULES FOR FINANCIAL INSTITUTIONS. 
(a) IN GENERAL.—Paragraph (3) of section 265(b) 
(relating to exception for certain tax-exempt obligations) is 
amended by adding at the end the following new subpara-
graph: 
‘‘(G) SPECIAL
RULES
FOR
OBLIGATIONS 
ISSUED DURING 2009 AND 2010.— 
‘‘(i) INCREASE IN LIMITATION.—In the 
case of obligations issued during 2009 or 
2010, subparagraphs (C)(i), (D)(i), and 
(D)(iii)(II) shall each be applied by sub-
stituting ‘$30,000,000’ for ‘$10,000,000’. 
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‘‘(ii) 
QUALIFIED
501(C)(3)
BONDS 
TREATED AS ISSUED BY EXEMPT ORGANIZA-
TION.—In the case of a qualified 501(c)(3) 
bond (as defined in section 145) issued dur-
ing 2009 or 2010, this paragraph shall be 
applied by treating the 501(c)(3) organiza-
tion for whose benefit such bond was issued 
as the issuer. 
‘‘(iii) SPECIAL RULE FOR QUALIFIED 
FINANCINGS.—In the case of a qualified fi-
nancing issue issued during 2009 or 2010— 
‘‘(I) subparagraph (F) shall not 
apply, and 
‘‘(II) any obligation issued as a 
part of such issue shall be treated as a 
qualified tax-exempt obligation if the 
requirements of this paragraph are met 
with respect to each qualified portion 
of the issue (determined by treating 
each qualified portion as a separate 
issue which is issued by the qualified 
borrower with respect to which such 
portion relates). 
‘‘(iv) QUALIFIED FINANCING ISSUE.— 
For purposes of this subparagraph, the term 
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‘qualified financing issue’ means any com-
posite, pooled, or other conduit financing 
issue the proceeds of which are used directly 
or indirectly to make or finance loans to 1 
or more ultimate borrowers each of whom is 
a qualified borrower. 
‘‘(v) QUALIFIED
PORTION.—For pur-
poses of this subparagraph, the term ‘quali-
fied portion’ means that portion of the pro-
ceeds which are used with respect to each 
qualified borrower under the issue. 
‘‘(vi) 
QUALIFIED
BORROWER.—For 
purposes of this subparagraph, the term 
‘qualified borrower’ means a borrower 
which is a State or political subdivision 
thereof or an organization described in sec-
tion 501(c)(3) and exempt from taxation 
under section 501(a).’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to obligations issued after December 31, 
2008. 
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SEC. 1503. TEMPORARY MODIFICATION OF ALTERNATIVE 
MINIMUM TAX LIMITATIONS ON TAX-EXEMPT 
BONDS. 
(a) INTEREST ON PRIVATE ACTIVITY BONDS ISSUED 
DURING 2009 AND 2010 NOT TREATED AS TAX PREF-
ERENCE ITEM.—Subparagraph (C) of section 57(a)(5) is 
amended by adding at the end a new clause: 
‘‘(vi) EXCEPTION FOR BONDS ISSUED 
IN 2009 AND 2010.—For purposes of clause 
(i), the term ‘private activity bond’ shall 
not include any bond issued after December 
31, 2008, and before January 1, 2011. For 
purposes of the preceding sentence, a re-
funding bond (whether a current or advance 
refunding) shall be treated as issued on the 
date of the issuance of the refunded bond (or 
in the case of a series of refundings, the 
original bond).’’. 
(b) NO ADJUSTMENT TO ADJUSTED CURRENT EARN-
INGS FOR INTEREST ON TAX-EXEMPT BONDS ISSUED DUR-
ING 2009 AND 2010.—Subparagraph (B) of section 56(g)(4) 
is amended by adding at the end the following new clause: 
‘‘(iv) 
TAX
EXEMPT
INTEREST
ON 
BONDS ISSUED IN 2009 AND 2010.—Clause (i) 
shall not apply in the case of any interest 
on a bond issued after December 31, 2008, 
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and before January 1, 2011. For purposes 
of the preceding sentence, a refunding bond 
(whether a current or advance refunding) 
shall be treated as issued on the date of the 
issuance of the refunded bond (or in the case 
of a series of refundings, the original 
bond).’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to obligations issued after December 31, 
2008. 
SEC. 1504. MODIFICATION TO HIGH SPEED INTERCITY RAIL 
FACILITY BONDS. 
(a) IN GENERAL.—Paragraph (1) of section 142(i) is 
amended by striking ‘‘operate at speeds in excess of’’ and 
inserting ‘‘be capable of attaining a maximum speed in ex-
cess of’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to bonds issued after the date of the en-
actment of this Act. 
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PART 
II—DELAY 
IN 
APPLICATION 
OF 
WITH-
HOLDING TAX ON GOVERNMENT CONTRAC-
TORS 
SEC. 1511. DELAY IN APPLICATION OF WITHHOLDING TAX 
ON GOVERNMENT CONTRACTORS. 
Subsection (b) of section 511 of the Tax Increase Pre-
vention and Reconciliation Act of 2005 is amended by strik-
ing ‘‘December 31, 2010’’ and inserting ‘‘December 31, 
2011’’. 
PART III—TAX CREDIT BONDS FOR SCHOOLS 
SEC. 1521. QUALIFIED SCHOOL CONSTRUCTION BONDS. 
(a) IN GENERAL.—Subpart I of part IV of subchapter 
A of chapter 1 is amended by adding at the end the fol-
lowing new section: 
‘‘SEC. 54F. QUALIFIED SCHOOL CONSTRUCTION BONDS. 
‘‘(a) QUALIFIED SCHOOL CONSTRUCTION BOND.—For 
purposes of this subchapter, the term ‘qualified school con-
struction bond’ means any bond issued as part of an issue 
if— 
‘‘(1) 100 percent of the available project proceeds 
of such issue are to be used for the construction, reha-
bilitation, or repair of a public school facility or for 
the acquisition of land on which such a facility is to 
be constructed with part of the proceeds of such issue, 
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‘‘(2) the bond is issued by a State or local gov-
ernment within the jurisdiction of which such school 
is located, and 
‘‘(3) the issuer designates such bond for purposes 
of this section. 
‘‘(b) LIMITATION
ON
AMOUNT
OF
BONDS
DES-
IGNATED.—The maximum aggregate face amount of bonds 
issued during any calendar year which may be designated 
under subsection (a) by any issuer shall not exceed the limi-
tation amount allocated under subsection (d) for such cal-
endar year to such issuer. 
‘‘(c) NATIONAL LIMITATION ON AMOUNT OF BONDS 
DESIGNATED.—There is a national qualified school con-
struction bond limitation for each calendar year. Such lim-
itation is— 
‘‘(1) $5,000,000,000 for 2009, 
‘‘(2) $5,000,000,000 for 2010, and 
‘‘(3) except as provided in subsection (e), zero 
after 2010. 
‘‘(d) LIMITATION ALLOCATED AMONG STATES.— 
‘‘(1) IN
GENERAL.—The limitation applicable 
under subsection (c) for any calendar year shall be al-
located by the Secretary among the States in propor-
tion to the respective numbers of children in each 
State who have attained age 5 but not age 18 for the 
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most recent fiscal year ending before such calendar 
year. The limitation amount allocated to a State 
under the preceding sentence shall be allocated by the 
State to issuers within such State. 
‘‘(2) MINIMUM ALLOCATIONS TO STATES.— 
‘‘(A) IN GENERAL.—The Secretary shall ad-
just the allocations under this subsection for any 
calendar year for each State to the extent nec-
essary to ensure that the amount allocated to 
such State under this subsection for such year is 
not less than an amount equal to such State’s 
adjusted minimum percentage of the amount to 
be allocated under paragraph (1) for the cal-
endar year. 
‘‘(B) MINIMUM
PERCENTAGE.—A State’s 
minimum percentage for any calendar year is 
equal to the product of— 
‘‘(i) the quotient of— 
‘‘(I) the amount the State is eligi-
ble to receive under section 1124(d) of 
the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6333(d)) 
for the most recent fiscal year ending 
before such calendar year, divided by 
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‘‘(II) the amount all States are el-
igible to receive under section 1124 of 
such Act (20 U.S.C. 6333) for such fis-
cal year, multiplied by 
‘‘(ii) 100. 
‘‘(3) ALLOCATIONS TO CERTAIN POSSESSIONS.— 
The amount to be allocated under paragraph (1) to 
any possession of the United States other than Puerto 
Rico shall be the amount which would have been allo-
cated if all allocations under paragraph (1) were 
made on the basis of respective populations of indi-
viduals below the poverty line (as defined by the Of-
fice of Management and Budget). In making other al-
locations, the amount to be allocated under paragraph 
(1) shall be reduced by the aggregate amount allocated 
under this paragraph to possessions of the United 
States. 
‘‘(4) ALLOCATIONS
FOR
INDIAN
SCHOOLS.—In 
addition to the amounts otherwise allocated under 
this subsection, $200,000,000 for calendar year 2009, 
and $200,000,000 for calendar year 2010, shall be al-
located by the Secretary of the Interior for purposes 
of the construction, rehabilitation, and repair of 
schools funded by the Bureau of Indian Affairs. In the 
case of amounts allocated under the preceding sen-
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tence, Indian tribal governments (as defined in sec-
tion 7701(a)(40)) shall be treated as qualified issuers 
for purposes of this subchapter. 
‘‘(e) CARRYOVER OF UNUSED LIMITATION.—If for any 
calendar year— 
‘‘(1) the amount allocated under subsection (d) to 
any State, exceeds 
‘‘(2) the amount of bonds issued during such 
year which are designated under subsection (a) pur-
suant to such allocation, 
the limitation amount under such subsection for such State 
for the following calendar year shall be increased by the 
amount of such excess. A similar rule shall apply to the 
amounts allocated under subsection (d)(4).’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (1) of section 54A(d) is amended 
by striking ‘‘or’’ at the end of subparagraph (C), by 
inserting ‘‘or’’ at the end of subparagraph (D), and 
by inserting after subparagraph (D) the following 
new subparagraph: 
‘‘(E) a qualified school construction bond,’’. 
(2) Subparagraph (C) of section 54A(d)(2) is 
amended by striking ‘‘and’’ at the end of clause (iii), 
by striking the period at the end of clause (iv) and 
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inserting ‘‘, and’’, and by adding at the end the fol-
lowing new clause: 
‘‘(v) in the case of a qualified school 
construction bond, a purpose specified in 
section 54F(a)(1).’’. 
(3) The table of sections for subpart I of part IV 
of subchapter A of chapter 1 is amended by adding 
at the end the following new item: 
‘‘Sec. 54F. Qualified school construction bonds.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to obligations issued after the date of 
the enactment of this Act. 
SEC. 1522. EXTENSION AND EXPANSION OF QUALIFIED 
ZONE ACADEMY BONDS. 
(a) IN GENERAL.—Section 54E(c)(1) is amended by 
striking ‘‘and 2009’’ and inserting ‘‘and $1,400,000,000 for 
2009 and 2010’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to obligations issued after December 31, 
2008. 
PART IV—BUILD AMERICA BONDS 
SEC. 1531. BUILD AMERICA BONDS. 
(a) IN GENERAL.—Part IV of subchapter A of chapter 
1 is amended by adding at the end the following new sub-
part: 
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‘‘Subpart J—Build America Bonds 
‘‘Sec. 54AA. Build America bonds. 
‘‘SEC. 54AA. BUILD AMERICA BONDS. 
‘‘(a) IN GENERAL.—If a taxpayer holds a build Amer-
ica bond on one or more interest payment dates of the bond 
during any taxable year, there shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year 
an amount equal to the sum of the credits determined under 
subsection (b) with respect to such dates. 
‘‘(b) AMOUNT OF CREDIT.—The amount of the credit 
determined under this subsection with respect to any inter-
est payment date for a build America bond is 35 percent 
of the amount of interest payable by the issuer with respect 
to such date (40 percent in the case of an issuer described 
in section 148(f)(4)(D) (determined without regard to 
clauses (v), (vi), and (vii) thereof and by substituting 
‘$30,000,000’ for ‘$5,000,000’ each place it appears there-
in). 
‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.— 
‘‘(1) IN
GENERAL.—The credit allowed under 
subsection (a) for any taxable year shall not exceed 
the excess of— 
‘‘(A) the sum of the regular tax liability (as 
defined in section 26(b)) plus the tax imposed by 
section 55, over 
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‘‘(B) the sum of the credits allowable under 
this part (other than subpart C and this sub-
part). 
‘‘(2) CARRYOVER
OF
UNUSED
CREDIT.—If the 
credit allowable under subsection (a) exceeds the limi-
tation imposed by paragraph (1) for such taxable 
year, such excess shall be carried to the succeeding 
taxable year and added to the credit allowable under 
subsection (a) for such taxable year (determined be-
fore the application of paragraph (1) for such suc-
ceeding taxable year). 
‘‘(d) BUILD AMERICA BOND.— 
‘‘(1) IN GENERAL.—For purposes of this section, 
the term ‘build America bond’ means any obligation 
(other than a private activity bond) if— 
‘‘(A) the interest on such obligation would 
(but for this section) be excludable from gross in-
come under section 103, 
‘‘(B) such obligation is issued before Janu-
ary 1, 2011, and 
‘‘(C) the issuer makes an irrevocable elec-
tion to have this section apply. 
‘‘(2) APPLICABLE RULES.—For purposes of ap-
plying paragraph (1)— 
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‘‘(A) for purposes of section 149(b), a build 
America bond shall not be treated as federally 
guaranteed by reason of the credit allowed under 
subsection (a) or section 6431, 
‘‘(B) for purposes of section 148, the yield 
on a build America bond shall be determined 
without regard to the credit allowed under sub-
section (a), and 
‘‘(C) a bond shall not be treated as a build 
America bond if the issue price has more than 
a de minimis amount (determined under rules 
similar to the rules of section 1273(a)(3)) of pre-
mium over the stated principal amount of the 
bond. 
‘‘(e) INTEREST PAYMENT DATE.—For purposes of this 
section, the term ‘interest payment date’ means any date 
on which the holder of record of the build America bond 
is entitled to a payment of interest under such bond. 
‘‘(f) SPECIAL RULES.— 
‘‘(1) INTEREST ON BUILD AMERICA BONDS IN-
CLUDIBLE IN GROSS INCOME FOR FEDERAL INCOME 
TAX PURPOSES.—For purposes of this title, interest 
on any build America bond shall be includible in 
gross income. 
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‘‘(2) APPLICATION OF CERTAIN RULES.—Rules 
similar to the rules of subsections (f), (g), (h), and (i) 
of section 54A shall apply for purposes of the credit 
allowed under subsection (a). 
‘‘(g) SPECIAL RULE FOR QUALIFIED BONDS ISSUED 
BEFORE 2011.—In the case of a qualified bond issued before 
January 1, 2011— 
‘‘(1) ISSUER ALLOWED REFUNDABLE CREDIT.— 
In lieu of any credit allowed under this section with 
respect to such bond, the issuer of such bond shall be 
allowed a credit as provided in section 6431. 
‘‘(2) QUALIFIED
BOND.—For purposes of this 
subsection, the term ‘qualified bond’ means any build 
America bond issued as part of an issue if— 
‘‘(A) 100 percent of the available project 
proceeds (as defined in section 54A) of such issue 
are to be used for capital expenditures, and 
‘‘(B) the issuer makes an irrevocable elec-
tion to have this subsection apply. 
‘‘(h) REGULATIONS.—The Secretary may prescribe 
such regulations and other guidance as may be necessary 
or appropriate to carry out this section and section 6431.’’. 
(b) CREDIT FOR QUALIFIED BONDS ISSUED BEFORE 
2011.—Subchapter B of chapter 65 is amended by adding 
at the end the following new section: 
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‘‘SEC. 6431. CREDIT FOR QUALIFIED BONDS ALLOWED TO 
ISSUER. 
‘‘(a) IN GENERAL.—In the case of a qualified bond 
issued before January 1, 2011, the issuer of such bond shall 
be allowed a credit with respect to each interest payment 
under such bond which shall be payable by the Secretary 
as provided in subsection (b). 
‘‘(b) PAYMENT OF CREDIT.—The Secretary shall pay 
(contemporaneously with each interest payment date under 
such bond) to the issuer of such bond (or to any person 
who makes such interest payments on behalf of the issuer) 
35 percent of the interest payable under such bond on such 
date (40 percent in the case of an issuer described in section 
148(f)(4)(D) (determined without regard to clauses (v), (vi), 
and (vii) thereof and by substituting ‘$30,000,000’ for 
‘$5,000,000’ each place it appears therein). 
‘‘(c) APPLICATION OF ARBITRAGE RULES.—For pur-
poses of section 148, the yield on a qualified bond shall be 
reduced by the credit allowed under this section. 
‘‘(d) INTEREST PAYMENT DATE.—For purposes of this 
subsection, the term ‘interest payment date’ means each 
date on which interest is payable by the issuer under the 
terms of the bond. 
‘‘(e) QUALIFIED BOND.—For purposes of this sub-
section, the term ‘qualified bond’ has the meaning given 
such term in section 54AA(g).’’. 
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(c) CONFORMING AMENDMENTS.— 
(1) Section 1324(b)(2) of title 31, United States 
Code, is amended by striking ‘‘or 6428’’ and inserting 
‘‘6428, or 6431,’’. 
(2) Section 54A(c)(1)(B) is amended by striking 
‘‘subpart C’’ and inserting ‘‘subparts C and J’’. 
(3) 
Sections 
54(c)(2), 
1397E(c)(2), 
and 
1400N(l)(3)(B) are each amended by striking ‘‘and I’’ 
and inserting ‘‘, I, and J’’. 
(4) Section 6401(b)(1) is amended by striking 
‘‘and I’’ and inserting ‘‘I, and J’’. 
(5) The table of subparts for part IV of sub-
chapter A of chapter 1 is amended by adding at the 
end the following new item: 
‘‘Subpart J. Build America bonds.’’. 
(6) The table of section for subchapter B of chap-
ter 65 is amended by adding at the end the following 
new item: 
‘‘Sec. 6431. Credit for qualified bonds allowed to issuer.’’. 
(d) TRANSITIONAL
COORDINATION
WITH
STATE 
LAW.—Except as otherwise provided by a State after the 
date of the enactment of this Act, the interest on any build 
America bond (as defined in section 54AA of the Internal 
Revenue Code of 1986, as added by this section) and the 
amount of any credit determined under such section with 
respect to such bond shall be treated for purposes of the in-
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come tax laws of such State as being exempt from Federal 
income tax. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall apply to obligations issued after the date of 
the enactment of this Act. 
Subtitle G—Economic Recovery 
Payments to Certain Individuals 
SEC. 1601. ECONOMIC RECOVERY PAYMENT TO RECIPIENTS 
OF SOCIAL SECURITY, SUPPLEMENTAL SECU-
RITY INCOME, RAILROAD RETIREMENT BENE-
FITS, AND VETERANS DISABILITY COMPENSA-
TION OR PENSION BENEFITS. 
(a) AUTHORITY TO MAKE PAYMENTS.— 
(1) ELIGIBILITY.— 
(A) IN
GENERAL.—Subject to paragraph 
(5)(B), the Secretary of the Treasury shall make 
a $300 payment to each individual who, for any 
month during the 3-month period ending with 
the month which ends prior to the month that 
includes the date of the enactment of this Act, is 
entitled to a benefit payment described in clause 
(i), (ii), or (iii) of subparagraph (B) or is eligi-
ble for a SSI cash benefit described in subpara-
graph (C). 
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(B) BENEFIT
PAYMENT
DESCRIBED.—For 
purposes of subparagraph (A): 
(i) TITLE II BENEFIT.—A benefit pay-
ment described in this clause is a monthly 
insurance benefit payable (without regard 
to sections 202(j)(1) and 223(b) of the So-
cial Security Act (42 U.S.C. 402(j)(1), 
423(b)) under— 
(I) section 202(a) of such Act (42 
U.S.C. 402(a)); 
(II) section 202(b) of such Act (42 
U.S.C. 402(b)); 
(III) section 202(c) of such Act 
(42 U.S.C. 402(c)); 
(IV) section 202(d)(1)(B)(ii) of 
such Act (42 U.S.C. 402(d)(1)(B)(ii)); 
(V) section 202(e) of such Act (42 
U.S.C. 402(e)); 
(VI) section 202(f) of such Act (42 
U.S.C. 402(f)); 
(VII) section 202(g) of such Act 
(42 U.S.C. 402(g)); 
(VIII) section 202(h) of such Act 
(42 U.S.C. 402(h)); 
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(IX) section 223(a) of such Act 
(42 U.S.C. 423(a)); 
(X) section 227 of such Act (42 
U.S.C. 427); or 
(XI) section 228 of such Act (42 
U.S.C. 428). 
(ii) 
RAILROAD
RETIREMENT
BEN-
EFIT.—A benefit payment described in this 
clause is a monthly annuity or pension 
payment payable (without regard to section 
5(a)(ii) of the Railroad Retirement Act of 
1974 (45 U.S.C. 231d(a)(ii)) under— 
(I) section 2(a)(1) of such Act (45 
U.S.C. 231a(a)(1)); 
(II) section 2(c) of such Act (45 
U.S.C. 231a(c)); 
(III) section 2(d)(1)(i) of such Act 
(45 U.S.C. 231a(d)(1)(i)); 
(IV) section 2(d)(1)(ii) of such Act 
(45 U.S.C. 231a(d)(1)(ii)); 
(V) section 2(d)(1)(iii)(C) of such 
Act to an adult disabled child (45 
U.S.C. 231a(d)(1)(iii)(C)); 
(VI) section 2(d)(1)(iv) of such 
Act (45 U.S.C. 231a(d)(1)(iv)); 
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HR 1 PP 
(VII) section 2(d)(1)(v) of such 
Act (45 U.S.C. 231a(d)(1)(v)); or 
(VIII) section 7(b)(2) of such Act 
(45 U.S.C. 231f(b)(2)) with respect to 
any of the benefit payments described 
in clause (i) of this subparagraph. 
(iii) VETERANS
BENEFIT.—A benefit 
payment described in this clause is a com-
pensation or pension payment payable 
under— 
(I) section 1110, 1117, 1121, 
1131, 1141, or 1151 of title 38, United 
States Code; 
(II) section 1310, 1312, 1313, 
1315, 1316, or 1318 of title 38, United 
States Code; 
(III) section 1513, 1521, 1533, 
1536, 1537, 1541, 1542, or 1562 of 
title 38, United States Code; or 
(IV) section 1805, 1815, or 1821 
of title 38, United States Code, 
to a veteran, surviving spouse, child, or 
parent as described in paragraph (2), (3), 
(4)(A)(ii), or (5) of section 101, title 38, 
United States Code, who received that ben-
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efit during any month within the 3 month 
period ending with the month which ends 
prior to the month that includes the date of 
the enactment of this Act. 
(C) SSI CASH
BENEFIT
DESCRIBED.—A 
SSI cash benefit described in this subparagraph 
is a cash benefit payable under section 1611 
(other than under subsection (e)(1)(B) of such 
section) or 1619(a) of the Social Security Act 
(42 U.S.C. 1382, 1382h). 
(2) REQUIREMENT.—A payment shall be made 
under paragraph (1) only to individuals who reside 
in 1 of the 50 States, the District of Columbia, Puerto 
Rico, Guam, the United States Virgin Islands, Amer-
ican Samoa, or the Northern Mariana Islands. For 
purposes of the preceding sentence, the determination 
of the individual’s residence shall be based on the cur-
rent address of record under a program specified in 
paragraph (1). 
(3) NO DOUBLE PAYMENTS.—An individual shall 
be paid only 1 payment under this section, regardless 
of whether the individual is entitled to, or eligible for, 
more than 1 benefit or cash payment described in 
paragraph (1). 
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(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 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 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 benefit 
under such paragraph was not payable by rea-
son of subsection (e)(1)(A) or (e)(4) of section 
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1611 (42 U.S.C. 1382) or section 1129A of such 
Act (42 U.S.C. 1320a-8a); or 
(D) in the case of any individual whose 
date of death occurs before the date on which the 
individual is certified under subsection (b) to re-
ceive a payment under this section. 
(5) TIMING AND MANNER OF PAYMENTS.— 
(A) IN
GENERAL.—The Secretary of the 
Treasury shall commence making payments 
under this section at the earliest practicable date 
but in no event later than 120 days after the 
date of enactment of this Act. The Secretary of 
the Treasury may make any payment electroni-
cally to an individual in such manner as if such 
payment was a benefit payment or cash benefit 
to such individual under the applicable program 
described in subparagraph (B) or (C) of para-
graph (1). 
(B) DEADLINE.—No payments shall be 
made under this section after December 31, 2010, 
regardless of any determinations of entitlement 
to, or eligibility for, such payments made after 
such date. 
(b) IDENTIFICATION OF RECIPIENTS.—The Commis-
sioner of Social Security, the Railroad Retirement Board, 
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and the Secretary of Veterans Affairs shall certify the indi-
viduals entitled to receive payments under this section and 
provide the Secretary of the Treasury with the information 
needed to disburse such payments. A certification of an in-
dividual shall be unaffected by any subsequent determina-
tion or redetermination of the individual’s entitlement to, 
or eligibility for, a benefit specified in subparagraph (B) 
or (C) of subsection (a)(1). 
(c) TREATMENT OF PAYMENTS.— 
(1) PAYMENT TO BE DISREGARDED FOR PUR-
POSES OF ALL FEDERAL AND FEDERALLY ASSISTED 
PROGRAMS.—A payment under subsection (a) shall 
not be regarded as income and shall not be regarded 
as a resource for the month of receipt and the fol-
lowing 9 months, for purposes of determining the eli-
gibility of the recipient (or the recipient’s spouse or 
family) for benefits or assistance, or the amount or 
extent of benefits or assistance, under any Federal 
program or under any State or local program fi-
nanced in whole or in part with Federal funds. 
(2) PAYMENT
NOT
CONSIDERED
INCOME
FOR 
PURPOSES
OF
TAXATION.—A payment under sub-
section (a) shall not be considered as gross income for 
purposes of the Internal Revenue Code of 1986. 
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(3) PAYMENTS PROTECTED FROM ASSIGNMENT.— 
The provisions of sections 207 and 1631(d)(1) of the 
Social Security Act (42 U.S.C. 407, 1383(d)(1)), sec-
tion 14(a) of the Railroad Retirement Act of 1974 (45 
U.S.C. 231m(a)), and section 5301 of title 38, United 
States Code, shall apply to any payment made under 
subsection (a) as if such payment was a benefit pay-
ment or cash benefit to such individual under the ap-
plicable program described in subparagraph (B) or 
(C) of subsection (a)(1). 
(4) PAYMENTS SUBJECT TO OFFSET.—Notwith-
standing paragraph (3), for purposes of section 3716 
of title 31, United States Code, any payment made 
under this section shall not be considered a benefit 
payment or cash benefit made under the applicable 
program described in subparagraph (B) or (C) of sub-
section (a)(1) and all amounts paid shall be subject 
to offset to collect delinquent debts. 
(d) PAYMENT TO REPRESENTATIVE PAYEES AND FI-
DUCIARIES.— 
(1) IN GENERAL.—In any case in which an indi-
vidual who is entitled to a payment under subsection 
(a) and whose benefit payment or cash benefit de-
scribed in paragraph (1) of that subsection is paid to 
a representative payee or fiduciary, the payment 
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under subsection (a) shall be made to the individual’s 
representative payee or fiduciary and the entire pay-
ment shall be used only for the benefit of the indi-
vidual who is entitled to the payment. 
(2) APPLICABILITY.— 
(A) PAYMENT ON THE BASIS OF A TITLE II 
OR SSI BENEFIT.—Section 1129(a)(3) of the So-
cial Security Act (42 U.S.C. 1320a–8(a)(3)) 
shall apply to any payment made on the basis 
of an entitlement to a benefit specified in para-
graph (1)(B)(i) or (1)(C) of subsection (a) in the 
same manner as such section applies to a pay-
ment under title II or XVI of such Act. 
(B) PAYMENT ON THE BASIS OF A RAIL-
ROAD RETIREMENT BENEFIT.—Section 13 of the 
Railroad Retirement Act (45 U.S.C. 231l) shall 
apply to any payment made on the basis of an 
entitlement to a benefit specified in paragraph 
(1)(B)(ii) of subsection (a) in the same manner 
as such section applies to a payment under such 
Act. 
(C) PAYMENT
ON
THE
BASIS
OF
A
VET-
ERANS
BENEFIT.—Sections 5502, 6106, and 
6108 of title 38, United States Code, shall apply 
to any payment made on the basis of an entitle-
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ment to a benefit specified in paragraph 
(1)(B)(iii) of subsection (a) in the same manner 
as those sections apply to a payment under that 
title. 
(e) APPROPRIATION.—Out of any sums in the Treas-
ury of the United States not otherwise appropriated, the 
following sums are appropriated for the period of fiscal 
years 2009 and 2010 to carry out this section: 
(1) For the Secretary of the Treasury— 
(A) such sums as may be necessary to make 
payments under this section; and 
(B) $57,000,000 for administrative costs in-
curred in carrying out this section and section 
36A of the Internal Revenue Code of 1986 (as 
added by this Act). 
(2) For the Commissioner of Social Security, 
$90,000,000 for the Social Security Administration’s 
Limitation on Administrative Expenses for costs in-
curred in carrying out this section. 
(3) 
For 
the 
Railroad 
Retirement 
Board, 
$1,000,000 for administrative costs incurred in car-
rying out this section. 
(4) For the Secretary of Veterans Affairs, 
$100,000 for the Information Systems Technology ac-
count and $7,100,000 for the General Operating Ex-
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penses account for administrative costs incurred in 
carrying out this section. 
Subtitle H—Trade Adjustment 
Assistance 
SEC. 1701. TEMPORARY EXTENSION OF TRADE ADJUST-
MENT ASSISTANCE PROGRAM. 
(a) ASSISTANCE FOR WORKERS.— 
(1) IN GENERAL.—Section 245(a) of the Trade 
Act of 1974 (19 U.S.C. 2317(a)) is amended by strik-
ing ‘‘December 31, 2007’’ and inserting ‘‘December 
31, 2010’’. 
(2) ALTERNATIVE TRADE ADJUSTMENT ASSIST-
ANCE.—Section 246(b)(1) of the Trade Act of 1974 
(19 U.S.C. 2318(b)(1)) is amended by striking ‘‘5 
years’’ and inserting ‘‘7 years’’. 
(b) ASSISTANCE FOR FIRMS.—Section 256(b) of the 
Trade Act of 1974 (19 U.S.C. 2346(b)) is amended by strik-
ing ‘‘2007, and $4,000,000 for the 3-month period begin-
ning on October 1, 2007,’’ and inserting ‘‘December 31, 
2010’’. 
(c) ASSISTANCE FOR FARMERS.—Section 298(a) of the 
Trade Act of 1974 (19 U.S.C. 2401g(a)) is amended by 
striking ‘‘through 2007’’ and all that follows through the 
end period and inserting ‘‘through December 31, 2010 to 
carry out the purposes of this chapter.’’. 
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(d) EXTENSION
OF TERMINATION DATES.—Section 
285 of the Trade Act of 1974 (19 U.S.C. 2271 note) is 
amended by striking ‘‘December 31, 2007’’ each place it ap-
pears and inserting ‘‘December 31, 2010’’. 
(e) SENSE OF THE SENATE REGARDING ADJUSTMENT 
ASSISTANCE FOR COMMUNITIES.—It is the sense of the Sen-
ate that title II of the Trade Act of 1974 (19 U.S.C. 2271 
et seq.) should be amended to assist any community im-
pacted by trade with economic adjustment through— 
(1) the coordination of efforts by State and local 
governments and economic organizations; 
(2) the coordination of Federal, State, and local 
resources; 
(3) the creation of community-based development 
strategies; and 
(4) the development and provision of training 
programs. 
(f) EFFECTIVE DATE.—The amendments made by this 
section shall be effective as of January 1, 2008. 
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Subtitle I—Prohibition on Collec-
tion of Certain Payments Made 
Under the Continued Dumping 
and Subsidy Offset Act of 2000 
SEC. 1801. PROHIBITION ON COLLECTION OF CERTAIN PAY-
MENTS MADE UNDER THE CONTINUED DUMP-
ING AND SUBSIDY OFFSET ACT OF 2000. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, neither the Secretary of Homeland Security nor 
any other person may— 
(1) require repayment of, or attempt in any 
other way to recoup, any payments described in sub-
section (b); or 
(2) offset any past, current, or future distribu-
tions of antidumping or countervailing duties as-
sessed with respect to imports from countries that are 
not parties to the North American Free Trade Agree-
ment in an attempt to recoup any payments de-
scribed in subsection (b). 
(b) PAYMENTS DESCRIBED.—Payments described in 
this subsection are payments of antidumping or counter-
vailing duties made pursuant to the Continued Dumping 
and Subsidy Offset Act of 2000 (section 754 of the Tariff 
Act of 1930 (19 U.S.C. 1675c; repealed by subtitle F of title 
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VII of the Deficit Reduction Act of 2005 (Public Law 109– 
171; 120 Stat. 154))) that were— 
(1) assessed and paid on imports of goods from 
countries that are parties to the North American Free 
Trade Agreement; and 
(2) distributed on or after January 1, 2001, and 
before January 1, 2006. 
(c) PAYMENT OF FUNDS COLLECTED OR WITHHELD.— 
Not later than the date that is 60 days after the date of 
the enactment of this Act, the Secretary of Homeland Secu-
rity shall— 
(1) refund any repayments, or any other 
recoupment, of payments described in subsection (b); 
and 
(2) fully distribute any antidumping or counter-
vailing duties that the U.S. Customs and Border Pro-
tection is withholding as an offset as described in sub-
section (a)(2). 
(d) LIMITATION.—Nothing in this section shall be con-
strued to prevent the Secretary of Homeland Security, or 
any other person, from requiring repayment of, or attempt-
ing to otherwise recoup, any payments described in sub-
section (b) as a result of— 
(1) a finding of false statements or other mis-
conduct by a recipient of such a payment; or 
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(2) the reliquidation of an entry with respect to 
which such a payment was made. 
Subtitle J—Other Provisions 
SEC. 1901. APPLICATION OF CERTAIN LABOR STANDARDS 
TO PROJECTS FINANCED WITH CERTAIN TAX- 
FAVORED BONDS. 
Subchapter IV of chapter 31 of the title 40, United 
States Code, shall apply to projects financed with the pro-
ceeds of— 
(1) any new clean renewable energy bond (as de-
fined in section 54C of the Internal Revenue Code of 
1986) issued after the date of the enactment of this 
Act, 
(2) any qualified energy conservation bond (as 
defined in section 54D of the Internal Revenue Code 
of 1986) issued after the date of the enactment of this 
Act, 
(3) any qualified zone academy bond (as defined 
in section 54E of the Internal Revenue Code of 1986) 
issued after the date of the enactment of this Act, 
(4) any qualified school construction bond (as 
defined in section 54F of the Internal Revenue Code 
of 1986), and 
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(5) any recovery zone economic development 
bond (as defined in section 1400U–2 of the Internal 
Revenue Code of 1986). 
SEC. 1902. INCREASE IN PUBLIC DEBT LIMIT. 
Subsection (b) of section 3101 of title 31, United States 
Code, is amended by striking out the dollar limitation con-
tained 
in 
such 
subsection 
and 
inserting 
‘‘$12,140,000,000,000’’. 
SEC. 1903. ELECTION TO ACCELERATE THE LOW-INCOME 
HOUSING TAX CREDIT. 
(a) IN GENERAL.—At the election of the taxpayer, the 
credit determined under section 42 of the Internal Revenue 
Code of 1986 for the taxpayer’s first three taxable years be-
ginning after December 31, 2008, in which credits are al-
lowable for any non-federally subsidized low-income hous-
ing project initially placed in service after such date— 
(1) with respect to initial investments made pur-
suant to a binding agreement by such taxpayer after 
December 31, 2008, and before January 1, 2011, and 
(2) only from allocations of a State housing 
credit ceiling before 2011, 
shall be 200 percent of the amount which would (but for 
this subsection) be so allowable. 
(b) ELIGIBILITY FOR ELECTION.—The election under 
subsection (a) shall take effect with respect to the first tax-
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able year referred to in such subsection only when all rental 
requirements pursuant to section 42(g)(1) of the Internal 
Revenue Code of 1986 have been met with respect to such 
low-income housing project. 
(c) REDUCTION IN AGGREGATE CREDIT TO REFLECT 
ACCELERATED CREDIT.—The aggregate credit allowable to 
any taxpayer under section 42 of the Internal Revenue Code 
of 1986 with respect to any investment for taxable years 
after the first three taxable years referred to in subsection 
(a) shall be reduced on a pro rata basis by the amount of 
the increased credit allowable by reason of subsection (a) 
with respect to such first three taxable years. The preceding 
sentence shall not be construed to affect whether any taxable 
year is part of the credit, compliance, or extended use peri-
ods under such section 42. 
(d) ELECTION.—The election under subsection (a) 
shall be made at the time and in the manner prescribed 
by the Secretary of the Treasury or the Secretary’s delegate, 
and, once made, shall be irrevocable. In the case of a part-
nership, such election shall be made by the partnership. 
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TITLE II—ASSISTANCE FOR UN-
EMPLOYED 
WORKERS 
AND 
STRUGGLING FAMILIES 
SEC. 2000. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This title may be cited as the ‘‘As-
sistance for Unemployed Workers and Struggling Families 
Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this title is as follows: 
TITLE II—ASSISTANCE FOR UNEMPLOYED WORKERS AND 
STRUGGLING FAMILIES 
Sec. 2000. Short title; table of contents. 
Subtitle A—Unemployment Insurance 
Sec. 2001. Extension of emergency unemployment compensation program. 
Sec. 2002. Increase in unemployment compensation benefits. 
Sec. 2003. Unemployment compensation modernization. 
Sec. 2004. Temporary assistance for States with advances. 
Subtitle B—Assistance for Vulnerable Individuals 
Sec. 2101. Emergency fund for TANF program. 
Sec. 2102. Extension of TANF supplemental grants. 
Sec. 2103. Clarification of authority of states to use tanf funds carried over from 
prior years to provide tanf benefits and services. 
Sec. 2104. Temporary reinstatement of authority to provide Federal matching 
payments for State spending of child support incentive pay-
ments. 
Subtitle A—Unemployment 
Insurance 
SEC. 2001. EXTENSION OF EMERGENCY UNEMPLOYMENT 
COMPENSATION PROGRAM. 
(a) IN GENERAL.—Section 4007 of the Supplemental 
Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 
3304 note), as amended by section 4 of the Unemployment 
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Compensation Extension Act of 2008 (Public Law 110–449; 
122 Stat. 5015), is amended— 
(1) by striking ‘‘March 31, 2009’’ each place it 
appears and inserting ‘‘December 31, 2009’’; 
(2) in the heading for subsection (b)(2), by strik-
ing ‘‘MARCH 31, 2009’’ and inserting ‘‘DECEMBER 31, 
2009’’; and 
(3) in subsection (b)(3), by striking ‘‘August 27, 
2009’’ and inserting ‘‘May 31, 2010’’. 
(b) FINANCING PROVISIONS.—Section 4004 of such Act 
is amended by adding at the end the following: 
‘‘(e) TRANSFER
OF FUNDS.—Notwithstanding any 
other provision of law, the Secretary of the Treasury shall 
transfer from the general fund of the Treasury (from funds 
not otherwise appropriated)— 
‘‘(1) to the extended unemployment compensation 
account (as established by section 905 of the Social 
Security Act) such sums as the Secretary of Labor es-
timates to be necessary to make payments to States 
under this title by reason of the amendments made by 
section 2001(a) of the Assistance for Unemployed 
Workers and Struggling Families Act; and 
‘‘(2) to the employment security administration 
account (as established by section 901 of the Social 
Security Act) such sums as the Secretary of Labor es-
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timates to be necessary for purposes of assisting 
States in meeting administrative costs by reason of 
the amendments referred to in paragraph (1). 
There are appropriated from the general fund of the Treas-
ury, without fiscal year limitation, the sums referred to in 
the preceding sentence and such sums shall not be required 
to be repaid.’’. 
SEC. 2002. INCREASE IN UNEMPLOYMENT COMPENSATION 
BENEFITS. 
(a) FEDERAL-STATE AGREEMENTS.—Any State which 
desires to do so may enter into and participate in an agree-
ment under this section with the Secretary of Labor (herein-
after in this section referred to as the ‘‘Secretary’’). Any 
State which is a party to an agreement under this section 
may, upon providing 30 days’ written notice to the Sec-
retary, terminate such agreement. 
(b) PROVISIONS OF AGREEMENT.— 
(1) ADDITIONAL
COMPENSATION.—Any agree-
ment under this section shall provide that the State 
agency of the State will make payments of regular 
compensation to individuals in amounts and to the 
extent that they would be determined if the State law 
of the State were applied, with respect to any week 
for which the individual is (disregarding this section) 
otherwise entitled under the State law to receive reg-
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ular compensation, as if such State law had been 
modified in a manner such that the amount of reg-
ular compensation (including dependents’ allowances) 
payable for any week shall be equal to the amount de-
termined under the State law (before the application 
of this paragraph) plus an additional $25. 
(2) ALLOWABLE METHODS OF PAYMENT.—Any 
additional compensation provided for in accordance 
with paragraph (1) shall be payable either— 
(A) as an amount which is paid at the 
same time and in the same manner as any reg-
ular compensation otherwise payable for the 
week involved; or 
(B) at the option of the State, by payments 
which are made separately from, but on the same 
weekly basis as, any regular compensation other-
wise payable. 
(c) NONREDUCTION RULE.—An agreement under this 
section shall not apply (or shall cease to apply) with respect 
to a State upon a determination by the Secretary that the 
method governing the computation of regular compensation 
under the State law of that State has been modified in a 
manner such that— 
(1) the average weekly benefit amount of regular 
compensation which will be payable during the period 
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of the agreement (determined disregarding any addi-
tional amounts attributable to the modification de-
scribed in subsection (b)(1)) will be less than 
(2) the average weekly benefit amount of regular 
compensation which would otherwise have been pay-
able during such period under the State law, as in ef-
fect on December 31, 2008. 
(d) PAYMENTS TO STATES.— 
(1) IN GENERAL.— 
(A) FULL REIMBURSEMENT.—There shall be 
paid to each State which has entered into an 
agreement under this section an amount equal to 
100 percent of— 
(i) the total amount of additional com-
pensation (as described in subsection (b)(1)) 
paid to individuals by the State pursuant 
to such agreement; and 
(ii) any additional administrative ex-
penses incurred by the State by reason of 
such agreement (as determined by the Sec-
retary). 
(B) TERMS OF PAYMENTS.—Sums payable 
to any State by reason of such State’s having an 
agreement under this section shall be payable, ei-
ther in advance or by way of reimbursement (as 
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determined by the Secretary), in such amounts 
as the Secretary estimates the State will be enti-
tled to receive under this section for each cal-
endar month, reduced or increased, as the case 
may be, by any amount by which the Secretary 
finds that his estimates for any prior calendar 
month were greater or less than the amounts 
which should have been paid to the State. Such 
estimates may be made on the basis of such sta-
tistical, sampling, or other method as may be 
agreed upon by the Secretary and the State 
agency of the State involved. 
(2) CERTIFICATIONS.—The Secretary shall from 
time to time certify to the Secretary of the Treasury 
for payment to each State the sums payable to such 
State under this section. 
(3) APPROPRIATION.—There are appropriated 
from the general fund of the Treasury, without fiscal 
year limitation, such sums as may be necessary for 
purposes of this subsection. 
(e) APPLICABILITY.— 
(1) IN
GENERAL.—An agreement entered into 
under this section shall apply to weeks of unemploy-
ment— 
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(A) beginning after the date on which such 
agreement is entered into; and 
(B) ending before January 1, 2010. 
(2) TRANSITION RULE FOR INDIVIDUALS REMAIN-
ING ENTITLED TO REGULAR COMPENSATION AS OF 
JANUARY 1, 2010.—In the case of any individual who, 
as of the date specified in paragraph (1)(B), has not 
yet exhausted all rights to regular compensation 
under the State law of a State with respect to a ben-
efit year that began before such date, additional com-
pensation (as described in subsection (b)(1)) shall 
continue to be payable to such individual for any 
week beginning on or after such date for which the in-
dividual is otherwise eligible for regular compensation 
with respect to such benefit year. 
(3) TERMINATION.—Notwithstanding any other 
provision of this subsection, no additional compensa-
tion (as described in subsection (b)(1)) shall be pay-
able for any week beginning after June 30, 2010. 
(f) FRAUD AND OVERPAYMENTS.—The provisions of 
section 4005 of the Supplemental Appropriations Act, 2008 
(Public Law 110–252; 122 Stat. 2356) shall apply with re-
spect to additional compensation (as described in subsection 
(b)(1)) to the same extent and in the same manner as in 
the case of emergency unemployment compensation. 
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(g) APPLICATION TO OTHER UNEMPLOYMENT BENE-
FITS.— 
(1) IN GENERAL.—Each agreement under this 
section shall include provisions to provide that the 
purposes of the preceding provisions of this section 
shall be applied with respect to unemployment bene-
fits described in subsection (i)(3) to the same extent 
and in the same manner as if those benefits were reg-
ular compensation. 
(2) ELIGIBILITY AND TERMINATION RULES.—Ad-
ditional compensation (as described in subsection 
(b)(1))— 
(A) shall not be payable, pursuant to this 
subsection, with respect to any unemployment 
benefits described in subsection (i)(3) for any 
week beginning on or after the date specified in 
subsection (e)(1)(B), except in the case of an in-
dividual who was eligible to receive additional 
compensation (as so described) in connection 
with any regular compensation or any unem-
ployment benefits described in subsection (i)(3) 
for any period of unemployment ending before 
such date; and 
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(B) shall in no event be payable for any 
week beginning after the date specified in sub-
section (e)(3). 
(h) DISREGARD OF ADDITIONAL COMPENSATION FOR 
PURPOSES OF MEDICAID AND SCHIP.—A State that enters 
into an agreement under this section shall disregard the 
monthly equivalent of $25 per week for any individual who 
receives additional compensation under subsection (b)(1) in 
considering the amount of income of the individual for any 
purposes under the Medicaid program under title XIX of 
the Social Security Act and the State Children’s Health In-
surance Program under title XXI of such Act. 
(i) DEFINITIONS.—For purposes of this section— 
(1) the terms ‘‘compensation’’, ‘‘regular com-
pensation’’, ‘‘benefit year’’, ‘‘State’’, ‘‘State agency’’, 
‘‘State law’’, and ‘‘week’’ have the respective meanings 
given such terms under section 205 of the Federal- 
State Extended Unemployment Compensation Act of 
1970 (26 U.S.C. 3304 note); 
(2) the term ‘‘emergency unemployment com-
pensation’’ means emergency unemployment com-
pensation under title IV of the Supplemental Appro-
priations Act, 2008 (Public Law 110–252; 122 Stat. 
2353); and 
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(3) any reference to unemployment benefits de-
scribed in this paragraph shall be considered to refer 
to— 
(A) extended compensation (as defined by 
section 205 of the Federal-State Extended Unem-
ployment Compensation Act of 1970); and 
(B) unemployment compensation (as de-
fined by section 85(b) of the Internal Revenue 
Code of 1986) provided under any program ad-
ministered by a State under an agreement with 
the Secretary. 
SEC. 2003. UNEMPLOYMENT COMPENSATION MODERNIZA-
TION. 
(a) IN GENERAL.—Section 903 of the Social Security 
Act (42 U.S.C. 1103) is amended by adding at the end the 
following: 
‘‘Special Transfers for Modernization 
‘‘(f)(1)(A) In addition to any other amounts, the Sec-
retary of Labor shall provide for the making of unemploy-
ment compensation modernization incentive payments 
(hereinafter ‘incentive payments’) to the accounts of the 
States in the Unemployment Trust Fund, by transfer from 
amounts reserved for that purpose in the Federal unemploy-
ment account, in accordance with succeeding provisions of 
this subsection. 
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‘‘(B) The maximum incentive payment allowable 
under this subsection with respect to any State shall, as 
determined by the Secretary of Labor, be equal to the 
amount obtained by multiplying $7,000,000,000 by the 
same ratio as would apply under subsection (a)(2)(B) for 
purposes of determining such State’s share of any excess 
amount (as described in subsection (a)(1)) that would have 
been subject to transfer to State accounts, as of October 1, 
2008, under the provisions of subsection (a). 
‘‘(C) Of the maximum incentive payment determined 
under subparagraph (B) with respect to a State— 
‘‘(i) one-third shall be transferred to the account 
of such State upon a certification under paragraph 
(4)(B) that the State law of such State meets the re-
quirements of paragraph (2); and 
‘‘(ii) the remainder shall be transferred to the ac-
count of such State upon a certification under para-
graph (4)(B) that the State law of such State meets 
the requirements of paragraph (3). 
‘‘(2) The State law of a State meets the requirements 
of this paragraph if such State law— 
‘‘(A) uses a base period that includes the most 
recently completed calendar quarter before the start of 
the benefit year for purposes of determining eligibility 
for unemployment compensation; or 
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‘‘(B) provides that, in the case of an individual 
who would not otherwise be eligible for unemployment 
compensation under the State law because of the use 
of a base period that does not include the most re-
cently completed calendar quarter before the start of 
the benefit year, eligibility shall be determined using 
a base period that includes such calendar quarter. 
‘‘(3) The State law of a State meets the requirements 
of this paragraph if such State law includes provisions to 
carry out at least 2 of the following subparagraphs: 
‘‘(A) An individual shall not be denied regular 
unemployment compensation under any State law 
provisions relating to availability for work, active 
search for work, or refusal to accept work, solely be-
cause such individual is seeking only part-time (and 
not full-time) work, except that the State law provi-
sions carrying out this subparagraph may exclude an 
individual if a majority of the weeks of work in such 
individual’s base period do not include part-time 
work. 
‘‘(B) An individual shall not be disqualified 
from regular unemployment compensation for sepa-
rating from employment if that separation is for any 
compelling family reason. For purposes of this sub-
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paragraph, the term ‘compelling family reason’ 
means the following: 
‘‘(i) Domestic violence, verified by such rea-
sonable and confidential documentation as the 
State law may require, which causes the indi-
vidual reasonably to believe that such individ-
ual’s continued employment would jeopardize the 
safety of the individual or of any member of the 
individual’s immediate family (as defined by the 
Secretary of Labor). 
‘‘(ii) The illness or disability of a member 
of the individual’s immediate family (as defined 
by the Secretary of Labor). 
‘‘(iii) The need for the individual to accom-
pany such individual’s spouse— 
‘‘(I) to a place from which it is im-
practical for such individual to commute; 
and 
‘‘(II) due to a change in location of the 
spouse’s employment. 
‘‘(C) Weekly unemployment compensation is 
payable under this subparagraph to any individual 
who is unemployed (as determined under the State 
unemployment compensation law), has exhausted all 
rights to regular unemployment compensation under 
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the State law, and is enrolled and making satisfac-
tory progress in a State-approved training program 
or in a job training program authorized under the 
Workforce Investment Act of 1998. Such programs 
shall prepare individuals who have been separated 
from a declining occupation, or who have been invol-
untarily and indefinitely separated from employment 
as a result of a permanent reduction of operations at 
the individual’s place of employment, for entry into 
a high-demand occupation. The amount of unemploy-
ment compensation payable under this subparagraph 
to an individual for a week of unemployment shall be 
equal to the individual’s average weekly benefit 
amount (including dependents’ allowances) for the 
most recent benefit year, and the total amount of un-
employment compensation payable under this sub-
paragraph to any individual shall be equal to at least 
26 times the individual’s average weekly benefit 
amount (including dependents’ allowances) for the 
most recent benefit year. 
‘‘(D) Dependents’ allowances are provided, in the 
case of any individual who is entitled to receive reg-
ular unemployment compensation and who has any 
dependents (as defined by State law), in an amount 
equal to at least $15 per dependent per week, subject 
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‘‘(i) IN
GENERAL.—The term ‘emer-
gency fund base year’ means, with respect 
to a State and a category described in 
clause (ii), whichever of fiscal year 2007 or 
2008 is the fiscal year in which the amount 
described by the category with respect to the 
State is the lesser. 
‘‘(ii) CATEGORIES
DESCRIBED.—The 
categories described in this clause are the 
following: 
‘‘(I) The average monthly assist-
ance caseload of the State. 
‘‘(II) The total expenditures of the 
State for non-recurrent short term ben-
efits, whether under the State program 
funded under this part or as qualified 
State expenditures. 
‘‘(III) The total expenditures of 
the State for subsidized employment, 
whether under the State program fund-
ed under this part or as qualified State 
expenditures. 
‘‘(C) QUALIFIED STATE EXPENDITURES.— 
The term ‘qualified State expenditures’ has the 
meaning given the term in section 409(a)(7).’’. 
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