† HR 4213 EAS 
(4) REQUIREMENTS.—The Secretary shall make 
grants under this subsection only to States that dem-
onstrate to the satisfaction of the Secretary that the 
State will— 
(A) use grant funds to assist eligible spe-
cialty crop producers; 
(B) provide assistance to eligible specialty 
crop producers not later than 90 days after the 
date on which the State receives grant funds; 
and 
(C) not later than 30 days after the date on 
which the State provides assistance to eligible 
specialty crop producers, submit to the Secretary 
a report that describes— 
(i) the manner in which the State pro-
vided assistance; 
(ii) the amounts of assistance provided 
by type of specialty crop; and 
(iii) the process by which the State de-
termined the levels of assistance to eligible 
specialty crop producers. 
(5) PROHIBITION.—An eligible specialty crop 
producer that receives assistance under this subsection 
shall be ineligible to receive assistance under sub-
section (b).
† HR 4213 EAS 
(6) RELATION TO OTHER LAW.—Assistance re-
ceived under this subsection shall be included in the 
calculation of farm revenue for the 2009 crop year 
under section 531(b)(4)(A) of the Federal Crop Insur-
ance Act (7 U.S.C. 1531(b)(4)(A)) and section 
901(b)(4)(A) of the Trade Act of 1974 (19 U.S.C. 
2497(b)(4)(A)). 
(d) COTTONSEED ASSISTANCE.— 
(1) IN
GENERAL.—Of the funds of the Com-
modity Credit Corporation, the Secretary shall use 
not more than $42,000,000 to provide supplemental 
assistance to eligible producers and first-handlers of 
the 2009 crop of cottonseed in a disaster county. 
(2) GENERAL TERMS.—Except as otherwise pro-
vided in this subsection, the Secretary shall provide 
disaster assistance under this subsection under the 
same terms and conditions as assistance provided 
under section 3015 of the Emergency Agricultural 
Disaster Assistance Act of 2006 (title III of Public 
Law 109–234; 120 Stat. 477). 
(3) DISTRIBUTION
OF
ASSISTANCE.—The Sec-
retary shall distribute assistance to first handlers for 
the benefit of eligible producers in a disaster county 
in an amount equal to the product obtained by multi-
plying—
† HR 4213 EAS 
(A) the payment rate, as determined under 
paragraph (4); and 
(B) the county-eligible production, as deter-
mined under paragraph (5). 
(4) PAYMENT RATE.—The payment rate shall be 
equal to the quotient obtained by dividing— 
(A) the sum of the county-eligible produc-
tion, as determined under paragraph (5); by 
(B) the total funds made available to carry 
out this subsection. 
(5) COUNTY-ELIGIBLE PRODUCTION.—The coun-
ty-eligible production shall be equal to the product ob-
tained by multiplying— 
(A) the number of acres planted to cotton in 
the disaster county, as reported to the Secretary 
by first-handlers; 
(B) the expected cotton lint yield for the dis-
aster county, as determined by the Secretary 
based on the best available information; and 
(C) the national average seed-to-lint ratio, 
as determined by the Secretary based on the best 
available information for the 5 crop years imme-
diately preceding the 2009 crop, excluding the 
year in which the average ratio was the highest
† HR 4213 EAS 
and the year in which the average ratio was the 
lowest in such period. 
(e) AQUACULTURE ASSISTANCE.— 
(1) GRANT PROGRAM.— 
(A) IN GENERAL.—Of the funds of the Com-
modity Credit Corporation, the Secretary shall 
use not more than $25,000,000, to remain avail-
able until September 30, 2011, to carry out a 
program of grants to States to assist eligible 
aquaculture producers for losses associated with 
high feed input costs during the 2009 calendar 
year. 
(B) NOTIFICATION.—Not later than 60 days 
after the date of enactment of this Act, the Sec-
retary shall notify the State department of agri-
culture (or similar entity) in each State of the 
availability of funds to assist eligible aqua-
culture producers, including such terms as are 
determined by the Secretary to be necessary for 
the equitable treatment of eligible aquaculture 
producers. 
(C) PROVISION OF GRANTS.— 
(i) IN GENERAL.—The Secretary shall 
make grants to States under this subsection 
on a pro rata basis based on the amount of
† HR 4213 EAS 
aquaculture feed used in each State during 
the 2008 calendar year, as determined by 
the Secretary. 
(ii) TIMING.—Not later than 120 days 
after the date of enactment of this Act, the 
Secretary shall make grants to States to 
provide assistance under this subsection. 
(D) REQUIREMENTS.—The Secretary shall 
make grants under this subsection only to States 
that demonstrate to the satisfaction of the Sec-
retary that the State will— 
(i) use grant funds to assist eligible 
aquaculture producers; 
(ii) provide assistance to eligible aqua-
culture producers not later than 60 days 
after the date on which the State receives 
grant funds; and 
(iii) not later than 30 days after the 
date on which the State provides assistance 
to eligible aquaculture producers, submit to 
the Secretary a report that describes— 
(I) the manner in which the State 
provided assistance;
† HR 4213 EAS 
(II) the amounts of assistance 
provided per species of aquaculture; 
and 
(III) the process by which the 
State determined the levels of assist-
ance to eligible aquaculture producers. 
(2) REDUCTION
IN
PAYMENTS.—An eligible 
aquaculture producer that receives assistance under 
this subsection shall not be eligible to receive any 
other assistance under the supplemental agricultural 
disaster assistance program established under section 
531 of the Federal Crop Insurance Act (7 U.S.C. 
1531) and section 901 of the Trade Act of 1974 (19 
U.S.C. 2497) for any losses in 2009 relating to the 
same species of aquaculture. 
(3) REPORT TO CONGRESS.—Not later than 240 
days after the date of enactment of this Act, the Sec-
retary shall submit to the appropriate committees of 
Congress a report that— 
(A) describes in detail the manner in which 
this subsection has been carried out; and 
(B) includes the information reported to the 
Secretary under paragraph (1)(D)(iii). 
(f) HAWAII TRANSPORTATION COOPERATIVE.—Not-
withstanding any other provision of law, the Secretary shall
† HR 4213 EAS 
use $21,000,000 of funds of the Commodity Credit Corpora-
tion to make a payment to an agricultural transportation 
cooperative in the State of Hawaii, the members of which 
are eligible to participate in the commodity loan program 
of the Farm Service Agency, for assistance to maintain and 
develop employment. 
(g) LIVESTOCK FORAGE DISASTER PROGRAM.— 
(1) DEFINITION OF DISASTER COUNTY.—In this 
subsection: 
(A) IN GENERAL.—The term ‘‘disaster coun-
ty’’ means a county included in the geographic 
area covered by a qualifying natural disaster 
declaration announced by the Secretary in cal-
endar year 2009. 
(B) INCLUSION.—The term ‘‘disaster coun-
ty’’ includes a contiguous county. 
(2) PAYMENTS.—Of the funds of the Commodity 
Credit Corporation, the Secretary shall use not more 
than $50,000,000 to carry out a program to make 
payments to eligible producers that had grazing losses 
in disaster counties in calendar year 2009. 
(3) CRITERIA.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), assistance under this sub-
section shall be determined under the same cri-
† HR 4213 EAS 
teria as are used to carry out the programs 
under section 531(d) of the Federal Crop Insur-
ance Act (7 U.S.C. 1531(d)) and section 901(d) 
of the Trade Act of 1974 (19 U.S.C. 2497(d)). 
(B) DROUGHT INTENSITY.—For purposes of 
this subsection, an eligible producer shall not be 
required to meet the drought intensity require-
ments of section 531(d)(3)(D)(ii) of the Federal 
Crop Insurance Act (7 U.S.C. 1531(d)(3)(D)(ii)) 
and section 901(d)(3)(D)(ii) of the Trade Act of 
1974 (19 U.S.C. 2497(d)(3)(D)(ii)). 
(4) AMOUNT.—Assistance under this subsection 
shall be in an amount equal to 1 monthly payment 
using the monthly payment rate under section 
531(d)(3)(B) of the Federal Crop Insurance Act (7 
U.S.C. 1531(d)(3)(B)) and section 901(d)(3)(B) of the 
Trade Act of 1974 (19 U.S.C. 2497(d)(3)(B)). 
(5) RELATION TO OTHER LAW.—An eligible pro-
ducer that receives assistance under this subsection 
shall be ineligible to receive assistance for 2009 graz-
ing losses under the program carried out under sec-
tion 531(d) of the Federal Crop Insurance Act (7 
U.S.C. 1531(d)) and section 901(d) of the Trade Act 
of 1974 (19 U.S.C. 2497(d)). 
(h) EMERGENCY LOANS FOR POULTRY PRODUCERS.—
† HR 4213 EAS 
(1) DEFINITIONS.—In this subsection: 
(A) ANNOUNCEMENT DATE.—The term ‘‘an-
nouncement date’’ means the date on which the 
Secretary announces the emergency loan pro-
gram under this subsection. 
(B) 
POULTRY
INTEGRATOR.—The 
term 
‘‘poultry integrator’’ means a poultry integrator 
that filed proceedings under chapter 11 of title 
11, United States Code, in United States Bank-
ruptcy Court during the 30-day period begin-
ning on December 1, 2008. 
(2) LOAN PROGRAM.— 
(A) IN GENERAL.—Of the funds of the Com-
modity Credit Corporation, the Secretary shall 
use not more than $75,000,000, to remain avail-
able until expended, for the cost of making no- 
interest emergency loans available to poultry 
producers that meet the requirements of this sub-
section. 
(B) TERMS
AND
CONDITIONS.—Except as 
otherwise provided in this subsection, emergency 
loans under this subsection shall be subject to 
such terms and conditions as are determined by 
the Secretary. 
(3) LOANS.—
† HR 4213 EAS 
(A) IN GENERAL.—An emergency loan made 
to a poultry producer under this subsection shall 
be for the purpose of providing financing to the 
poultry producer in response to financial losses 
associated with the termination or nonrenewal of 
any contract between the poultry producer and a 
poultry integrator. 
(B) ELIGIBILITY.— 
(i) IN GENERAL.—To be eligible for an 
emergency loan under this subsection, not 
later than 90 days after the announcement 
date, a poultry producer shall submit to the 
Secretary evidence that— 
(I) the contract of the poultry pro-
ducer described in subparagraph (A) 
was not continued; and 
(II) no similar contract has been 
awarded subsequently to the poultry 
producer. 
(ii) 
REQUIREMENT
TO
OFFER 
LOANS.—Notwithstanding any other provi-
sion of law, if a poultry producer meets the 
eligibility requirements described in clause 
(i), subject to the availability of funds 
under paragraph (2)(A), the Secretary shall
† HR 4213 EAS 
offer to make a loan under this subsection 
to the poultry producer with a minimum 
term of 2 years. 
(4) ADDITIONAL REQUIREMENTS.— 
(A) IN GENERAL.—A poultry producer that 
receives an emergency loan under this subsection 
may use the emergency loan proceeds only to 
repay the amount that the poultry producer owes 
to any lender for the purchase, improvement, or 
operation of the poultry farm. 
(B) CONVERSION OF THE LOAN.—A poultry 
producer that receives an emergency loan under 
this subsection shall be eligible to have the bal-
ance of the emergency loan converted, but not re-
financed, to a loan that has the same terms and 
conditions as an operating loan under subtitle B 
of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1941 et seq.). 
(i) STATE
AND
LOCAL
GOVERNMENTS.—Section 
1001(f)(6)(A) of the Food Security Act of 1985 (7 U.S.C. 
1308(f)(6)(A)) is amended by inserting ‘‘(other than the 
conservation reserve program established under subchapter 
B of chapter 1 of subtitle D of title XII of this Act)’’ before 
the period at the end. 
(j) ADMINISTRATION.—
† HR 4213 EAS 
(1) REGULATIONS.— 
(A) IN GENERAL.—As soon as practicable 
after the date of enactment of this Act, the Sec-
retary shall promulgate such regulations as are 
necessary to implement this section and the 
amendment made by this section. 
(B) PROCEDURE.—The promulgation of the 
regulations and administration of this section 
and the amendment made by this section shall be 
made without regard to— 
(i) the notice and comment provisions 
of section 553 of title 5, United States Code; 
(ii) the Statement of Policy of the Sec-
retary of Agriculture effective July 24, 1971 
(36 Fed. Reg. 13804), relating to notices of 
proposed rulemaking and public participa-
tion in rulemaking; and 
(iii) chapter 35 of title 44, United 
States Code (commonly known as the ‘‘Pa-
perwork Reduction Act’’). 
(C) CONGRESSIONAL
REVIEW
OF
AGENCY 
RULEMAKING.—In carrying out this paragraph, 
the Secretary shall use the authority provided 
under section 808 of title 5, United States Code.
† HR 4213 EAS 
(2) ADMINISTRATIVE COSTS.—Of the funds of the 
Commodity Credit Corporation, the Secretary may 
use up to $10,000,000 to pay administrative costs in-
curred by the Secretary that are directly related to 
carrying out this Act. 
(3) PROHIBITION.—None of the funds of the Ag-
ricultural Disaster Relief Trust Fund established 
under section 902 of the Trade Act of 1974 (19 U.S.C. 
2497a) may be used to carry out this Act. 
SEC. 246. SMALL BUSINESS LOAN GUARANTEE ENHANCE-
MENT EXTENSIONS. 
(a) APPROPRIATION.—There is appropriated, out of 
any funds in the Treasury not otherwise appropriated, for 
an additional amount for ‘‘Small Business Administration 
– Business Loans Program Account’’, $560,000,000, to re-
main available through December 31, 2010, for the cost of— 
(1) fee reductions and eliminations under section 
501 of division A of the American Recovery and Re-
investment Act of 2009 (Public Law 111–5; 123 Stat. 
151), as amended by this section, for loans guaran-
teed under section 7(a) of the Small Business Act (15 
U.S.C. 636(a)), title V of the Small Business Invest-
ment Act of 1958 (15 U.S.C. 695 et seq.), or section 
502 of division A of the American Recovery and Re-
† HR 4213 EAS 
investment Act of 2009 (Public Law 111–5; 123 Stat. 
152), as amended by this section; and 
(2) loan guarantees under section 502 of division 
A of the American Recovery and Reinvestment Act of 
2009 (Public Law 111–5; 123 Stat. 152), as amended 
by this section, 
Provided, That such costs, including the cost of modifying 
such loans, shall be as defined in section 502 of the Congres-
sional Budget Act of 1974. 
(b) EXTENSION OF PROGRAMS.— 
(1) FEES.—Section 501 of division A of the 
American Recovery and Reinvestment Act of 2009 
(Public Law 111–5; 123 Stat. 151) is amended by 
striking ‘‘September 30, 2010’’ each place it appears 
and inserting ‘‘December 31, 2010’’. 
(2) LOAN GUARANTEES.—Section 502(f) of divi-
sion A of the American Recovery and Reinvestment 
Act of 2009 (Public Law 111–5; 123 Stat. 153) is 
amended by striking ‘‘March 28, 2010’’ and inserting 
‘‘December 31, 2010’’. 
(3) EFFECTIVE DATE FOR LOAN GUARANTEES.— 
The amendment made by paragraph (2) shall take ef-
fect on February 27, 2010.
† HR 4213 EAS 
TITLE III—PENSION FUNDING 
RELIEF 
Subtitle A—Single Employer Plans 
SEC. 301. EXTENDED PERIOD FOR SINGLE-EMPLOYER DE-
FINED BENEFIT PLANS TO AMORTIZE CER-
TAIN SHORTFALL AMORTIZATION BASES. 
(a) AMENDMENTS TO ERISA.— 
(1) IN
GENERAL.—Paragraph (2) of section 
303(c) of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1083(c)) is amended by add-
ing at the end the following subparagraph: 
‘‘(D) SPECIAL
ELECTION
FOR
ELIGIBLE 
PLAN YEARS.— 
‘‘(i) IN GENERAL.—If a plan sponsor 
elects to apply this subparagraph with re-
spect to the shortfall amortization base of a 
plan for any eligible plan year (in this sub-
paragraph and paragraph (7) referred to as 
an ‘election year’), then, notwithstanding 
subparagraphs (A) and (B)— 
‘‘(I) the shortfall amortization in-
stallments with respect to such base 
shall be determined under clause (ii) or 
(iii), whichever is specified in the elec-
tion, and
† HR 4213 EAS 
‘‘(II) the shortfall amortization 
installment for any plan year in the 9- 
plan-year period described in clause 
(ii) or the 15-plan-year period de-
scribed in clause (iii), respectively, 
with respect to such shortfall amortiza-
tion base is the annual installment de-
termined under the applicable clause 
for that year for that base. 
‘‘(ii) 2 PLUS 7 AMORTIZATION SCHED-
ULE.—The shortfall amortization install-
ments determined under this clause are— 
‘‘(I) in the case of the first 2 plan 
years in the 9-plan-year period begin-
ning with the election year, interest on 
the shortfall amortization base of the 
plan for the election year (determined 
using the effective interest rate for the 
plan for the election year), and 
‘‘(II) in the case of the last 7 plan 
years in such 9-plan-year period, the 
amounts necessary to amortize the re-
maining balance of the shortfall amor-
tization base of the plan for the elec-
tion year in level annual installments
† HR 4213 EAS 
over such last 7 plan years (using the 
segment rates under subparagraph (C) 
for the election year). 
‘‘(iii) 15-YEAR
AMORTIZATION.—The 
shortfall amortization installments deter-
mined under this subparagraph are the 
amounts necessary to amortize the shortfall 
amortization base of the plan for the elec-
tion year in level annual installments over 
the 15-plan-year period beginning with the 
election year (using the segment rates under 
subparagraph (C) for the election year). 
‘‘(iv) ELECTION.— 
‘‘(I) 
IN
GENERAL.—The 
plan 
sponsor of a plan may elect to have 
this subparagraph apply to not more 
than 2 eligible plan years with respect 
to the plan, except that in the case of 
a plan described in section 106 of the 
Pension Protection Act of 2006, the 
plan sponsor may only elect to have 
this subparagraph apply to a plan 
year beginning in 2011. 
‘‘(II) 
AMORTIZATION
SCHED-
ULE.—Such 
election 
shall 
specify
† HR 4213 EAS 
whether 
the 
amortization 
schedule 
under clause (ii) or (iii) shall apply to 
an election year, except that if a plan 
sponsor elects to have this subpara-
graph apply to 2 eligible plan years, 
the plan sponsor must elect the same 
schedule for both years. 
‘‘(III) OTHER RULES.—Such elec-
tion shall be made at such time, and in 
such form and manner, as shall be pre-
scribed by the Secretary of the Treas-
ury, and may be revoked only with the 
consent of the Secretary of the Treas-
ury. The Secretary of the Treasury 
shall, before granting a revocation re-
quest, provide the Pension Benefit 
Guaranty Corporation an opportunity 
to comment on the conditions applica-
ble to the treatment of any portion of 
the election year shortfall amortization 
base that remains unamortized as of 
the revocation date. 
‘‘(v) ELIGIBLE PLAN YEAR.—For pur-
poses of this subparagraph, the term ‘eligi-
ble plan year’ means any plan year begin-
† HR 4213 EAS 
ning in 2008, 2009, 2010, or 2011, except 
that a plan year shall only be treated as an 
eligible plan year if the due date under sub-
section (j)(1) for the payment of the min-
imum required contribution for such plan 
year occurs on or after the date of the enact-
ment of this subparagraph. 
‘‘(vi) REPORTING.—A plan sponsor of 
a plan who makes an election under clause 
(i) shall— 
‘‘(I) give notice of the election to 
participants and beneficiaries of the 
plan, and 
‘‘(II) inform the Pension Benefit 
Guaranty Corporation of such election 
in such form and manner as the Direc-
tor of the Pension Benefit Guaranty 
Corporation may prescribe. 
‘‘(vii) INCREASES
IN
REQUIRED
IN-
STALLMENTS IN CERTAIN CASES.—For in-
creases in required contributions in cases of 
excess compensation or extraordinary divi-
dends or stock redemptions, see paragraph 
(7).’’.
† HR 4213 EAS 
(2) INCREASES IN REQUIRED INSTALLMENTS IN 
CERTAIN CASES.—Section 303(c) of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 
1083(c)) is amended by adding at the end the fol-
lowing paragraph: 
‘‘(7) INCREASES IN ALTERNATE REQUIRED IN-
STALLMENTS IN CASES OF EXCESS COMPENSATION OR 
EXTRAORDINARY
DIVIDENDS
OR
STOCK
REDEMP-
TIONS.— 
‘‘(A) IN GENERAL.—If there is an install-
ment acceleration amount with respect to a plan 
for any plan year in the restriction period with 
respect to an election year under paragraph 
(2)(D), then the shortfall amortization install-
ment otherwise determined and payable under 
such paragraph for such plan year shall, subject 
to the limitation under subparagraph (B), be in-
creased by such amount. 
‘‘(B) TOTAL
INSTALLMENTS
LIMITED
TO 
SHORTFALL BASE.—Subject to rules prescribed 
by the Secretary of the Treasury, if a shortfall 
amortization installment with respect to any 
shortfall amortization base for an election year 
is required to be increased for any plan year 
under subparagraph (A)—
† HR 4213 EAS 
‘‘(i) such increase shall not result in 
the amount of such installment exceeding 
the present value of such installment and all 
succeeding installments with respect to such 
base (determined without regard to such in-
crease but after application of clause (ii)), 
and 
‘‘(ii) subsequent shortfall amortization 
installments with respect to such base shall, 
in reverse order of the otherwise required in-
stallments, be reduced to the extent nec-
essary to limit the present value of such 
subsequent shortfall amortization install-
ments (after application of this paragraph) 
to the present value of the remaining 
unamortized shortfall amortization base. 
‘‘(C) 
INSTALLMENT
ACCELERATION 
AMOUNT.—For purposes of this paragraph— 
‘‘(i) IN GENERAL.—The term ‘install-
ment acceleration amount’ means, with re-
spect to any plan year in a restriction pe-
riod with respect to an election year, the 
sum of— 
‘‘(I) the aggregate amount of ex-
cess employee compensation determined
† HR 4213 EAS 
under subparagraph (D) with respect 
to all employees for the plan year, plus 
‘‘(II) the aggregate amount of ex-
traordinary dividends and redemp-
tions determined under subparagraph 
(E) for the plan year. 
‘‘(ii) ANNUAL
LIMITATION.—The in-
stallment acceleration amount for any plan 
year shall not exceed the excess (if any) of— 
‘‘(I) the sum of the shortfall amor-
tization installments for the plan year 
and all preceding plan years in the 
amortization 
period 
elected 
under 
paragraph (2)(D) with respect to the 
shortfall amortization base with respect 
to an election year, determined without 
regard to paragraph (2)(D) and this 
paragraph, over 
‘‘(II) the sum of the shortfall am-
ortization installments for such plan 
year and all such preceding plan 
years, determined after application of 
paragraph (2)(D) (and in the case of 
any preceding plan year, after appli-
cation of this paragraph).
† HR 4213 EAS 
‘‘(iii) CARRYOVER OF EXCESS INSTALL-
MENT ACCELERATION AMOUNTS.— 
‘‘(I) IN GENERAL.—If the install-
ment acceleration amount for any plan 
year (determined without regard to 
clause (ii)) exceeds the limitation 
under clause (ii), then, subject to sub-
clause (II), such excess shall be treated 
as an installment acceleration amount 
with respect to the succeeding plan 
year. 
‘‘(II) CAP
TO
APPLY.—If any 
amount treated as an installment ac-
celeration amount under subclause (I) 
or this subclause with respect any suc-
ceeding plan year, when added to other 
installment acceleration amounts (de-
termined without regard to clause (ii)) 
with respect to the plan year, exceeds 
the limitation under clause (ii), the 
portion of such amount representing 
such excess shall be treated as an in-
stallment acceleration amount with re-
spect to the next succeeding plan year.
† HR 4213 EAS 
‘‘(III) LIMITATION ON YEARS TO 
WHICH
AMOUNTS
CARRIED
FOR.—No 
amount shall be carried under sub-
clause (I) or (II) to a plan year which 
begins after the first plan year fol-
lowing the last plan year in the re-
striction period (or after the second 
plan year following such last plan year 
in the case of an election year with re-
spect to which 15-year amortization 
was elected under paragraph (2)(D)). 
‘‘(IV) 
ORDERING
RULES.—For 
purposes of applying subclause (II), 
installment acceleration amounts for 
the plan year (determined without re-
gard to any carryover under this 
clause) shall be applied first against 
the limitation under clause (ii) and 
then carryovers to such plan year shall 
be applied against such limitation on 
a first-in, first-out basis. 
‘‘(D) EXCESS EMPLOYEE COMPENSATION.— 
For purposes of this paragraph— 
‘‘(i) IN
GENERAL.—The term ‘excess 
employee compensation’ means, with respect
† HR 4213 EAS 
to any employee for any plan year, the ex-
cess (if any) of— 
‘‘(I) the aggregate amount includ-
ible in income under chapter 1 of the 
Internal Revenue Code of 1986 for re-
muneration during the calendar year 
in which such plan year begins for 
services performed by the employee for 
the plan sponsor (whether or not per-
formed during such calendar year), 
over 
‘‘(II) $1,000,000. 
‘‘(ii) AMOUNTS SET ASIDE FOR NON-
QUALIFIED
DEFERRED
COMPENSATION.—If 
during any calendar year assets are set 
aside or reserved (directly or indirectly) in 
a trust (or other arrangement as determined 
by the Secretary of the Treasury), or trans-
ferred to such a trust or other arrangement, 
by a plan sponsor for purposes of paying 
deferred compensation of an employee under 
a nonqualified deferred compensation plan 
(as defined in section 409A of such Code) of 
the plan sponsor, then, for purposes of 
clause (i), the amount of such assets shall be
† HR 4213 EAS 
treated as remuneration of the employee in-
cludible in income for the calendar year un-
less such amount is otherwise includible in 
income for such year. An amount to which 
the preceding sentence applies shall not be 
taken into account under this paragraph for 
any subsequent calendar year. 
‘‘(iii) ONLY REMUNERATION FOR CER-
TAIN
POST-2009
SERVICES
COUNTED.—Re-
muneration shall be taken into account 
under clause (i) only to the extent attrib-
utable to services performed by the employee 
for the plan sponsor after February 28, 
2010. 
‘‘(iv) EXCEPTION FOR CERTAIN EQUITY 
PAYMENTS.— 
‘‘(I) IN
GENERAL.—There shall 
not be taken into account under clause 
(i)(I) any amount includible in income 
with respect to the granting after Feb-
ruary 28, 2010, of service recipient 
stock (within the meaning of section 
409A of the Internal Revenue Code of 
1986) that, upon such grant, is subject 
to a substantial risk of forfeiture (as
† HR 4213 EAS 
defined under section 83(c)(1) of such 
Code) for at least 5 years from the date 
of such grant. 
‘‘(II) 
SECRETARIAL
AUTHOR-
ITY.—The Secretary of the Treasury 
may by regulation provide for the ap-
plication of this clause in the case of a 
person other than a corporation. 
‘‘(v) OTHER
EXCEPTIONS.—The fol-
lowing amounts includible in income shall 
not be taken into account under clause 
(i)(I): 
‘‘(I) COMMISSIONS.—Any remu-
neration payable on a commission 
basis solely on account of income di-
rectly generated by the individual per-
formance of the individual to whom 
such remuneration is payable. 
‘‘(II) CERTAIN PAYMENTS UNDER 
EXISTING
CONTRACTS.—Any 
remu-
neration consisting of nonqualified de-
ferred compensation, restricted stock, 
stock options, or stock appreciation 
rights payable or granted under a 
written binding contract that was in
† HR 4213 EAS 
effect on March 1, 2010, and which 
was not modified in any material re-
spect before such remuneration is paid. 
‘‘(vi) 
SELF-EMPLOYED
INDIVIDUAL 
TREATED
AS
EMPLOYEE.—The term ‘em-
ployee’ includes, with respect to a calendar 
year, a self-employed individual who is 
treated as an employee under section 401(c) 
of such Code for the taxable year ending 
during such calendar year, and the term 
‘compensation’ shall include earned income 
of such individual with respect to such self- 
employment. 
‘‘(vii) INDEXING OF AMOUNT.—In the 
case of any calendar year beginning after 
2010, the dollar amount under clause (i)(II) 
shall be increased by an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost-of-living adjustment 
determined under section 1(f)(3) of 
such Code for the calendar year, deter-
mined by substituting ‘calendar year 
2009’ for ‘calendar year 1992’ in sub-
paragraph (B) thereof.
† HR 4213 EAS 
If the amount of any increase under clause 
(i) is not a multiple of $1,000, such in-
crease shall be rounded to the next lowest 
multiple of $1,000. 
‘‘(E) EXTRAORDINARY DIVIDENDS AND RE-
DEMPTIONS.— 
‘‘(i) IN GENERAL.—The amount deter-
mined under this subparagraph for any 
plan year is the excess (if any) of the sum 
of the dividends declared during the plan 
year by the plan sponsor plus the aggregate 
amount paid for the redemption of stock of 
the plan sponsor redeemed during the plan 
year over the greater of— 
‘‘(I) the adjusted net income 
(within the meaning of section 4043) of 
the plan sponsor for the preceding plan 
year, determined without regard to 
any reduction by reason of interest, 
taxes, depreciation, or amortization, or 
‘‘(II) in the case of a plan sponsor 
that determined and declared dividends 
in the same manner for at least 5 con-
secutive years immediately preceding 
such plan year, the aggregate amount
† HR 4213 EAS 
of dividends determined and declared 
for such plan year using such manner. 
‘‘(ii) ONLY
CERTAIN
POST-2009
DIVI-
DENDS AND REDEMPTIONS COUNTED.—For 
purposes of clause (i), there shall only be 
taken into account dividends declared, and 
redemptions occurring, after February 28, 
2010. 
‘‘(iii) EXCEPTION
FOR
INTRA-GROUP 
DIVIDENDS.—Dividends paid by one mem-
ber of a controlled group (as defined in sec-
tion 302(d)(3)) to another member of such 
group shall not be taken into account under 
clause (i). 
‘‘(iv) EXCEPTION
FOR
CERTAIN
RE-
DEMPTIONS.—Redemptions that are made 
pursuant to a plan maintained with respect 
to employees, or that are made on account 
of the death, disability, or termination of 
employment of an employee or shareholder, 
shall not be taken into account under clause 
(i). 
‘‘(v) EXCEPTION
FOR
CERTAIN
PRE-
FERRED STOCK.—
100 
† HR 4213 EAS 
‘‘(I) 
IN
GENERAL.—Dividends 
and redemptions with respect to appli-
cable preferred stock shall not be taken 
into account under clause (i) to the ex-
tent that dividends accrue with respect 
to such stock at a specified rate in all 
events and without regard to the plan 
sponsor’s income, and interest accrues 
on any unpaid dividends with respect 
to such stock. 
‘‘(II) 
APPLICABLE
PREFERRED 
STOCK.—For purposes of subclause (I), 
the term ‘applicable preferred stock’ 
means preferred stock which was issued 
before March 1, 2010 (or which was 
issued after such date and is held by 
an employee benefit plan subject to the 
provisions of this title). 
‘‘(F) OTHER
DEFINITIONS
AND
RULES.— 
For purposes of this paragraph— 
‘‘(i) PLAN SPONSOR.—The term ‘ plan 
sponsor’ includes any member of the plan 
sponsor’s controlled group (as defined in 
section 302(d)(3)).
101 
† HR 4213 EAS 
‘‘(ii) RESTRICTION PERIOD.—The term 
‘restriction period’ means, with respect to 
any election year— 
‘‘(I) except as provided in sub-
clause (II), the 3-year period beginning 
with the election year (or, if later, the 
first plan year beginning after Decem-
ber 31, 2009), and 
‘‘(II) if the plan sponsor elects 15- 
year amortization for the shortfall am-
ortization base for the election year, the 
5-year period beginning with the elec-
tion year (or, if later, the first plan 
year beginning after December 31, 
2009). 
‘‘(iii) 
ELECTIONS
FOR
MULTIPLE 
PLANS.—If a plan sponsor makes elections 
under paragraph (2)(D) with respect to 2 
or more plans, the Secretary of the Treas-
ury shall provide rules for the application 
of this paragraph to such plans, including 
rules for the ratable allocation of any in-
stallment acceleration amount among such 
plans on the basis of each plan’s relative re-
duction in the plan’s shortfall amortization
102 
† HR 4213 EAS 
installment for the first plan year in the 
amortization period described in subpara-
graph (A) (determined without regard to 
this paragraph). 
‘‘(iv) MERGERS AND ACQUISITIONS.— 
The Secretary of the Treasury shall pre-
scribe rules for the application of paragraph 
(2)(D) and this paragraph in any case 
where there is a merger or acquisition in-
volving a plan sponsor making the election 
under paragraph (2)(D).’’. 
(3) CONFORMING AMENDMENTS.—Section 303 of 
such Act (29 U.S.C. 1083) is amended— 
(A) in subsection (c)(1), by striking ‘‘the 
shortfall amortization bases for such plan year 
and each of the 6 preceding plan years’’ and in-
serting ‘‘any shortfall amortization base which 
has not been fully amortized under this sub-
section’’, and 
(B) in subsection (j)(3), by adding at the 
end the following: 
‘‘(F) QUARTERLY CONTRIBUTIONS NOT TO 
INCLUDE
CERTAIN
INCREASED
CONTRIBU-
TIONS.—Subparagraph (D) shall be applied
103 
† HR 4213 EAS 
without regard to any increase under subsection 
(c)(7).’’. 
(b) AMENDMENTS TO INTERNAL REVENUE CODE OF 
1986.— 
(1) IN
GENERAL.—Paragraph (2) of section 
430(c) is amended by adding at the end the following 
subparagraph: 
‘‘(D) SPECIAL
ELECTION
FOR
ELIGIBLE 
PLAN YEARS.— 
‘‘(i) IN GENERAL.—If a plan sponsor 
elects to apply this subparagraph with re-
spect to the shortfall amortization base of a 
plan for any eligible plan year (in this sub-
paragraph and paragraph (7) referred to as 
an ‘election year’), then, notwithstanding 
subparagraphs (A) and (B)— 
‘‘(I) the shortfall amortization in-
stallments with respect to such base 
shall be determined under clause (ii) or 
(iii), whichever is specified in the elec-
tion, and 
‘‘(II) the shortfall amortization 
installment for any plan year in the 9- 
plan-year period described in clause 
(ii) or the 15-plan-year period de-
104 
† HR 4213 EAS 
scribed in clause (iii), respectively, 
with respect to such shortfall amortiza-
tion base is the annual installment de-
termined under the applicable clause 
for that year for that base. 
‘‘(ii) 2 PLUS 7 AMORTIZATION SCHED-
ULE.—The shortfall amortization install-
ments determined under this clause are— 
‘‘(I) in the case of the first 2 plan 
years in the 9-plan-year period begin-
ning with the election year, interest on 
the shortfall amortization base of the 
plan for the election year (determined 
using the effective interest rate for the 
plan for the election year), and 
‘‘(II) in the case of the last 7 plan 
years in such 9-plan-year period, the 
amounts necessary to amortize the re-
maining balance of the shortfall amor-
tization base of the plan for the elec-
tion year in level annual installments 
over such last 7 plan years (using the 
segment rates under subparagraph (C) 
for the election year).
105 
† HR 4213 EAS 
‘‘(iii) 15-YEAR
AMORTIZATION.—The 
shortfall amortization installments deter-
mined under this subparagraph are the 
amounts necessary to amortize the shortfall 
amortization base of the plan for the elec-
tion year in level annual installments over 
the 15-plan-year period beginning with the 
election year (using the segment rates under 
subparagraph (C) for the election year). 
‘‘(iv) ELECTION.— 
‘‘(I) 
IN
GENERAL.—The 
plan 
sponsor of a plan may elect to have 
this subparagraph apply to not more 
than 2 eligible plan years with respect 
to the plan, except that in the case of 
a plan described in section 106 of the 
Pension Protection Act of 2006, the 
plan sponsor may only elect to have 
this subparagraph apply to a plan 
year beginning in 2011. 
‘‘(II) 
AMORTIZATION
SCHED-
ULE.—Such 
election 
shall 
specify 
whether 
the 
amortization 
schedule 
under clause (ii) or (iii) shall apply to 
an election year, except that if a plan
106 
† HR 4213 EAS 
sponsor elects to have this subpara-
graph apply to 2 eligible plan years, 
the plan sponsor must elect the same 
schedule for both years. 
‘‘(III) OTHER RULES.—Such elec-
tion shall be made at such time, and in 
such form and manner, as shall be pre-
scribed by the Secretary, and may be 
revoked only with the consent of the 
Secretary. The Secretary shall, before 
granting a revocation request, provide 
the Pension Benefit Guaranty Cor-
poration an opportunity to comment 
on the conditions applicable to the 
treatment of any portion of the election 
year shortfall amortization base that 
remains unamortized as of the revoca-
tion date. 
‘‘(v) ELIGIBLE PLAN YEAR.—For pur-
poses of this subparagraph, the term ‘eligi-
ble plan year’ means any plan year begin-
ning in 2008, 2009, 2010, or 2011, except 
that a plan year shall only be treated as an 
eligible plan year if the due date under sub-
section (j)(1) for the payment of the min-
107 
† HR 4213 EAS 
imum required contribution for such plan 
year occurs on or after the date of the enact-
ment of this subparagraph. 
‘‘(vi) REPORTING.—A plan sponsor of 
a plan who makes an election under clause 
(i) shall— 
‘‘(I) give notice of the election to 
participants and beneficiaries of the 
plan, and 
‘‘(II) inform the Pension Benefit 
Guaranty Corporation of such election 
in such form and manner as the Direc-
tor of the Pension Benefit Guaranty 
Corporation may prescribe. 
‘‘(vii) INCREASES
IN
REQUIRED
IN-
STALLMENTS IN CERTAIN CASES.—For in-
creases in required contributions in cases of 
excess compensation or extraordinary divi-
dends or stock redemptions, see paragraph 
(7).’’. 
(2) INCREASES IN REQUIRED CONTRIBUTIONS IF 
EXCESS
COMPENSATION
PAID.—Section 430(c) is 
amended by adding at the end the following para-
graph:
108 
† HR 4213 EAS 
‘‘(7) INCREASES IN ALTERNATE REQUIRED IN-
STALLMENTS IN CASES OF EXCESS COMPENSATION OR 
EXTRAORDINARY
DIVIDENDS
OR
STOCK
REDEMP-
TIONS.— 
‘‘(A) IN GENERAL.—If there is an install-
ment acceleration amount with respect to a plan 
for any plan year in the restriction period with 
respect to an election year under paragraph 
(2)(D), then the shortfall amortization install-
ment otherwise determined and payable under 
such paragraph for such plan year shall, subject 
to the limitation under subparagraph (B), be in-
creased by such amount. 
‘‘(B) TOTAL
INSTALLMENTS
LIMITED
TO 
SHORTFALL BASE.—Subject to rules prescribed 
by the Secretary, if a shortfall amortization in-
stallment with respect to any shortfall amortiza-
tion base for an election year is required to be 
increased for any plan year under subparagraph 
(A)— 
‘‘(i) such increase shall not result in 
the amount of such installment exceeding 
the present value of such installment and all 
succeeding installments with respect to such 
base (determined without regard to such in-
109 
† HR 4213 EAS 
crease but after application of clause (ii)), 
and 
‘‘(ii) subsequent shortfall amortization 
installments with respect to such base shall, 
in reverse order of the otherwise required in-
stallments, be reduced to the extent nec-
essary to limit the present value of such 
subsequent shortfall amortization install-
ments (after application of this paragraph) 
to the present value of the remaining 
unamortized shortfall amortization base. 
‘‘(C) 
INSTALLMENT
ACCELERATION 
AMOUNT.—For purposes of this paragraph— 
‘‘(i) IN GENERAL.—The term ‘install-
ment acceleration amount’ means, with re-
spect to any plan year in a restriction pe-
riod with respect to an election year, the 
sum of— 
‘‘(I) the aggregate amount of ex-
cess employee compensation determined 
under subparagraph (D) with respect 
to all employees for the plan year, plus 
‘‘(II) the aggregate amount of ex-
traordinary dividends and redemp-
110 
† HR 4213 EAS 
tions determined under subparagraph 
(E) for the plan year. 
‘‘(ii) ANNUAL
LIMITATION.—The in-
stallment acceleration amount for any plan 
year shall not exceed the excess (if any) of— 
‘‘(I) the sum of the shortfall amor-
tization installments for the plan year 
and all preceding plan years in the 
amortization 
period 
elected 
under 
paragraph (2)(D) with respect to the 
shortfall amortization base with respect 
to an election year, determined without 
regard to paragraph (2)(D) and this 
paragraph, over 
‘‘(II) the sum of the shortfall am-
ortization installments for such plan 
year and all such preceding plan 
years, determined after application of 
paragraph (2)(D) (and in the case of 
any preceding plan year, after appli-
cation of this paragraph). 
‘‘(iii) CARRYOVER OF EXCESS INSTALL-
MENT ACCELERATION AMOUNTS.— 
‘‘(I) IN GENERAL.—If the install-
ment acceleration amount for any plan
111 
† HR 4213 EAS 
year (determined without regard to 
clause (ii)) exceeds the limitation 
under clause (ii), then, subject to sub-
clause (II), such excess shall be treated 
as an installment acceleration amount 
with respect to the succeeding plan 
year. 
‘‘(II) CAP
TO
APPLY.—If any 
amount treated as an installment ac-
celeration amount under subclause (I) 
or this subclause with respect any suc-
ceeding plan year, when added to other 
installment acceleration amounts (de-
termined without regard to clause (ii)) 
with respect to the plan year, exceeds 
the limitation under clause (ii), the 
portion of such amount representing 
such excess shall be treated as an in-
stallment acceleration amount with re-
spect to the next succeeding plan year. 
‘‘(III) LIMITATION ON YEARS TO 
WHICH
AMOUNTS
CARRIED
FOR.—No 
amount shall be carried under sub-
clause (I) or (II) to a plan year which 
begins after the first plan year fol-
112 
† HR 4213 EAS 
lowing the last plan year in the re-
striction period (or after the second 
plan year following such last plan year 
in the case of an election year with re-
spect to which 15-year amortization 
was elected under paragraph (2)(D)). 
‘‘(IV) 
ORDERING
RULES.—For 
purposes of applying subclause (II), 
installment acceleration amounts for 
the plan year (determined without re-
gard to any carryover under this 
clause) shall be applied first against 
the limitation under clause (ii) and 
then carryovers to such plan year shall 
be applied against such limitation on 
a first-in, first-out basis. 
‘‘(D) EXCESS EMPLOYEE COMPENSATION.— 
For purposes of this paragraph— 
‘‘(i) IN
GENERAL.—The term ‘excess 
employee compensation’ means, with respect 
to any employee for any plan year, the ex-
cess (if any) of— 
‘‘(I) the aggregate amount includ-
ible in income under this chapter for 
remuneration during the calendar year
125 
† HR 4213 EAS 
‘‘(2) AMORTIZATION SCHEDULE.—Such election 
shall specify whether the rules under subsection (b) or 
(c) shall apply to an election year, except that if a 
plan sponsor elects to have this section apply to 2 eli-
gible plan years, the plan sponsor must elect the same 
rule for both years. 
‘‘(3) OTHER
RULES.—Such election shall be 
made at such time, and in such form and manner, 
as shall be prescribed by the Secretary of the Treas-
ury, and may be revoked only with the consent of the 
Secretary of the Treasury. 
‘‘(e) DEFINITIONS.—For purposes of this section— 
‘‘(1) ELIGIBLE PLAN YEAR.—For purposes of this 
subparagraph, the term ‘eligible plan year’ means 
any plan year beginning in 2008, 2009, 2010, or 
2011, except that a plan year beginning in 2008 shall 
only be treated as an eligible plan year if the due 
date for the payment of the minimum required con-
tribution for such plan year occurs on or after the 
date of the enactment of this clause. 
‘‘(2) PRE-EFFECTIVE
DATE
PLAN
YEAR.—The 
term ‘pre-effective date plan year’ means, with respect 
to a plan, any plan year prior to the first year in 
which the amendments made by this subtitle and sub-
title B apply to the plan.
151 
† HR 4213 EAS 
(b) MODIFICATION OF EFFECTIVE DATE OF DOCU-
MENTATION REQUIREMENTS.—Paragraph (2) of section 
12(e) of the Worker, Homeownership, and Business Assist-
ance Act of 2009 is amended by striking ‘‘returns for tax-
able years ending after the date of the enactment of this 
Act’’ and inserting ‘‘returns filed after the date of the enact-
ment of this Act’’. 
(c) EFFECTIVE DATES.— 
(1) 
DOCUMENTATION
REQUIREMENTS.—The 
amendments made by subsection (a) shall apply to 
purchases on or after the date of the enactment of this 
Act. 
(2) EFFECTIVE DATE OF WORKER, HOMEOWNER-
SHIP, AND BUSINESS ASSISTANCE ACT.—The amend-
ment made by subsection (b) shall apply to purchases 
of a principal residence on or after the date of the en-
actment of the Worker, Homeownership, and Business 
Assistance Act of 2009. 
Subtitle C—Economic Substance 
SEC. 421. CODIFICATION OF ECONOMIC SUBSTANCE DOC-
TRINE; PENALTIES. 
(a) IN GENERAL.—Section 7701 is amended by redes-
ignating subsection (o) as subsection (p) and by inserting 
after subsection (n) the following new subsection:
152 
† HR 4213 EAS 
‘‘(o) CLARIFICATION OF ECONOMIC SUBSTANCE DOC-
TRINE.— 
‘‘(1) APPLICATION OF DOCTRINE.—In the case of 
any transaction to which the economic substance doc-
trine is relevant, such transaction shall be treated as 
having economic substance only if— 
‘‘(A) the transaction changes in a meaning-
ful way (apart from Federal income tax effects) 
the taxpayer’s economic position, and 
‘‘(B) the taxpayer has a substantial purpose 
(apart from Federal income tax effects) for enter-
ing into such transaction. 
‘‘(2) SPECIAL RULE WHERE TAXPAYER RELIES 
ON PROFIT POTENTIAL.— 
‘‘(A) IN GENERAL.—The potential for profit 
of a transaction shall be taken into account in 
determining whether the requirements of sub-
paragraphs (A) and (B) of paragraph (1) are 
met with respect to the transaction only if the 
present value of the reasonably expected pre-tax 
profit from the transaction is substantial in rela-
tion to the present value of the expected net tax 
benefits that would be allowed if the transaction 
were respected.