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but only to the extent such income does not 
in any year exceed an amount equal to the 
credit for qualified broadband expenditures 
which would be determined under section 
48D for such year if the mutual or coopera-
tive telephone company was not exempt 
from taxation and was treated as the owner 
of the property subject to such lease.’’. 
(d) CONFORMING AMENDMENTS.— 
(1) Section 49(a)(1)(C), as amended by this Act, 
is amended by striking ‘‘and’’ at the end of clause 
(iv), by striking the period at the end of clause (v) 
and inserting ‘‘, and’’, and by adding after clause (v) 
the following new clause: 
‘‘(vi) the portion of the basis of any 
qualified equipment attributable to quali-
fied broadband expenditures under section 
48D.’’. 
(2) The table of sections for subpart E of part IV 
of subchapter A of chapter 1, as amended by this Act, 
is amended by inserting after the item relating to sec-
tion 48C the following: 
‘‘Sec. 48D. Broadband internet access credit’’. 
(e) DESIGNATION OF CENSUS TRACTS.— 
(1) IN GENERAL.—The Secretary of the Treasury 
shall, not later than 90 days after the date of the en-
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actment of this Act, designate and publish those cen-
sus tracts meeting the criteria described in para-
graphs (17), (23), (24), and (26) of section 48D(e) of 
the Internal Revenue Code of 1986 (as added by this 
section). In making such designations, the Secretary 
of the Treasury shall consult with such other depart-
ments and agencies as the Secretary determines ap-
propriate. 
(2) SATURATED MARKET.— 
(A) IN GENERAL.—For purposes of desig-
nating and publishing those census tracts meet-
ing the criteria described in subsection (e)(20) of 
such section 48D— 
(i) the Secretary of the Treasury shall 
prescribe not later than 30 days after the 
date of the enactment of this Act the form 
upon which any provider which takes the 
position that it meets such criteria with re-
spect to any census tract shall submit a list 
of such census tracts (and any other infor-
mation required by the Secretary) not later 
than 60 days after the date of the publica-
tion of such form, and 
(ii) the Secretary of the Treasury shall 
publish an aggregate list of such census 
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tracts submitted and the applicable pro-
viders not later than 30 days after the last 
date such submissions are allowed under 
clause (i). 
(B) NO SUBSEQUENT LISTS REQUIRED.— 
The Secretary of the Treasury shall not be re-
quired to publish any list of census tracts meet-
ing such criteria subsequent to the list described 
in subparagraph (A)(ii). 
(C) AUTHORITY TO DISREGARD FALSE SUB-
MISSIONS.—In addition to imposing any other 
applicable penalties, the Secretary of the Treas-
ury shall have the discretion to disregard any 
form described in subparagraph (A)(i) on which 
a provider knowingly submitted false informa-
tion. 
(f) OTHER REGULATORY MATTERS.— 
(1) PROHIBITION.—No Federal or State agency 
or instrumentality shall adopt regulations or rate-
making procedures that would have the effect of elimi-
nating or reducing any credit or portion thereof al-
lowed under section 48D of the Internal Revenue Code 
of 1986 (as added by this section) or otherwise sub-
verting the purpose of this section. 
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(2) TREASURY REGULATORY AUTHORITY.—It is 
the intent of Congress in providing the broadband 
Internet access credit under section 48D of the Inter-
nal Revenue Code of 1986 (as added by this section) 
to provide incentives for the purchase, installation, 
and connection of equipment and facilities offering 
expanded broadband access to the Internet for users 
in certain low income and rural areas of the United 
States, as well as to residential users nationwide, in 
a manner that maintains competitive neutrality 
among the various classes of providers of broadband 
services. Accordingly, the Secretary of the Treasury 
shall prescribe such regulations as may be necessary 
or appropriate to carry out the purposes of section 
48D of such Code, including— 
(A) regulations to determine how and when 
a taxpayer that incurs qualified broadband ex-
penditures satisfies the requirements of section 
48D of such Code to provide broadband services, 
and 
(B) regulations describing the information, 
records, and data taxpayers are required to pro-
vide the Secretary to substantiate compliance 
with the requirements of section 48D of such 
Code. 
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(g) EFFECTIVE DATE.—The amendments made by this 
section shall apply to expenditures incurred after December 
31, 2008. 
PART IX—CLARIFICATION OF REGULATIONS RE-
LATED TO LIMITATIONS ON CERTAIN BUILT- 
IN 
LOSSES 
FOLLOWING 
AN 
OWNERSHIP 
CHANGE 
SEC. 1281. CLARIFICATION OF REGULATIONS RELATED TO 
LIMITATIONS ON CERTAIN BUILT-IN LOSSES 
FOLLOWING AN OWNERSHIP CHANGE. 
(a) FINDINGS.—Congress finds as follows: 
(1) The delegation of authority to the Secretary 
of the Treasury under section 382(m) of the Internal 
Revenue Code of 1986 does not authorize the Sec-
retary to provide exemptions or special rules that are 
restricted to particular industries or classes of tax-
payers. 
(2) Internal Revenue Service Notice 2008–83 is 
inconsistent with the congressional intent in enacting 
such section 382(m). 
(3) The legal authority to prescribe Internal Rev-
enue Service Notice 2008–83 is doubtful. 
(4) However, as taxpayers should generally be 
able to rely on guidance issued by the Secretary of the 
Treasury legislation is necessary to clarify the force 
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and effect of Internal Revenue Service Notice 2008– 
83 and restore the proper application under the Inter-
nal Revenue Code of 1986 of the limitation on built- 
in losses following an ownership change of a bank. 
(b) DETERMINATION OF FORCE AND EFFECT OF IN-
TERNAL REVENUE SERVICE NOTICE 2008–83 EXEMPTING 
BANKS FROM LIMITATION ON CERTAIN BUILT–IN LOSSES 
FOLLOWING OWNERSHIP CHANGE.— 
(1) IN GENERAL.—Internal Revenue Service No-
tice 2008–83— 
(A) shall be deemed to have the force and ef-
fect of law with respect to any ownership change 
(as defined in section 382(g) of the Internal Rev-
enue Code of 1986) occurring on or before Janu-
ary 16, 2009, and 
(B) shall have no force or effect with respect 
to any ownership change after such date. 
(2) 
BINDING
CONTRACTS.—Notwithstanding 
paragraph (1), Internal Revenue Service Notice 
2008–83 shall have the force and effect of law with re-
spect to any ownership change (as so defined) which 
occurs after January 16, 2009, if such change— 
(A) is pursuant to a written binding con-
tract entered into on or before such date, or 
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(B) is pursuant to a written agreement en-
tered into on or before such date and such agree-
ment was described on or before such date in a 
public announcement or in a filing with the Se-
curities and Exchange Commission required by 
reason of such ownership change. 
Subtitle D—Manufacturing 
Recovery Provisions 
SEC. 1301. TEMPORARY EXPANSION OF AVAILABILITY OF IN-
DUSTRIAL DEVELOPMENT BONDS TO FACILI-
TIES MANUFACTURING INTANGIBLE PROP-
ERTY. 
(a) IN
GENERAL.—Subparagraph (C) of section 
144(a)(12) is amended— 
(1) by striking ‘‘For purposes of this paragraph, 
the term’’ and inserting ‘‘For purposes of this para-
graph— 
‘‘(i) IN GENERAL.—The term’’, and 
(2) by striking the last sentence and inserting 
the following new clauses: 
‘‘(ii) 
CERTAIN
FACILITIES
IN-
CLUDED.—Such term includes facilities 
which are directly related and ancillary to 
a manufacturing facility (determined with-
out regard to this clause) if— 
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‘‘(I) such facilities are located on 
the same site as the manufacturing fa-
cility, and 
‘‘(II) not more than 25 percent of 
the net proceeds of the issue are used to 
provide such facilities. 
‘‘(iii) SPECIAL
RULES
FOR
BONDS 
ISSUED IN 2009 AND 2010.—In the case of 
any issue made after the date of enactment 
of this clause and before January 1, 2011, 
clause (ii) shall not apply and the net pro-
ceeds from a bond shall be considered to be 
used to provide a manufacturing facility if 
such proceeds are used to provide— 
‘‘(I) a facility which is used in 
the creation or production of intangible 
property which is described in section 
197(d)(1)(C)(iii), or 
‘‘(II) a facility which is function-
ally related and subordinate to a man-
ufacturing facility (determined without 
regard to this subclause) if such facil-
ity is located on the same site as the 
manufacturing facility.’’. 
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(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to bonds issued after the date of the en-
actment of this Act. 
SEC. 1302. CREDIT FOR INVESTMENT IN ADVANCED EN-
ERGY FACILITIES. 
(a) IN GENERAL.—Section 46 (relating to amount of 
credit) is amended by striking ‘‘and’’ at the end of para-
graph (3), by striking the period at the end of paragraph 
(4), and by adding at the end the following new paragraph: 
‘‘(5) the qualifying advanced energy project cred-
it.’’. 
(b) AMOUNT OF CREDIT.—Subpart E of part IV of 
subchapter A of chapter 1 (relating to rules for computing 
investment credit) is amended by inserting after section 
48B the following new section: 
‘‘SEC. 48C. QUALIFYING ADVANCED ENERGY PROJECT 
CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 46, the 
qualifying advanced energy project credit for any taxable 
year is an amount equal to 30 percent of the qualified in-
vestment for such taxable year with respect to any quali-
fying advanced energy project of the taxpayer. 
‘‘(b) QUALIFIED INVESTMENT.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the qualified investment for any taxable year is 
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the basis of eligible property placed in service by the 
taxpayer during such taxable year which is part of 
a qualifying advanced energy project— 
‘‘(A)(i) the construction, reconstruction, or 
erection of which is completed by the taxpayer 
after October 31, 2008, or 
‘‘(ii) which is acquired by the taxpayer if 
the original use of such eligible property com-
mences with the taxpayer after October 31, 2008, 
and 
‘‘(B) with respect to which depreciation (or 
amortization in lieu of depreciation) is allow-
able. 
‘‘(2) CERTAIN QUALIFIED PROGRESS EXPENDI-
TURES RULES MADE APPLICABLE.—Rules similar to 
the rules of subsections (c)(4) and (d) of section 46 (as 
in effect on the day before the enactment of the Rev-
enue Reconciliation Act of 1990) shall apply for pur-
poses of this section. 
‘‘(3) LIMITATION.—The amount which is treated 
for all taxable years with respect to any qualifying 
advanced energy project shall not exceed the amount 
designated by the Secretary as eligible for the credit 
under this section. 
‘‘(c) DEFINITIONS.— 
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‘‘(1) 
QUALIFYING
ADVANCED
ENERGY 
PROJECT.— 
‘‘(A) IN
GENERAL.—The term ‘qualifying 
advanced energy project’ means a project— 
‘‘(i) which re-equips, expands, or estab-
lishes a manufacturing facility for the pro-
duction of property which is— 
‘‘(I) designed to be used to 
produce energy from the sun, wind, 
geothermal deposits (within the mean-
ing of section 613(e)(2)), or other re-
newable resources, 
‘‘(II) designed to manufacture fuel 
cells, microturbines, or an energy stor-
age system for use with electric or hy-
brid-electric motor vehicles, 
‘‘(III) designed to manufacture 
electric grids to support the trans-
mission of intermittent sources of re-
newable energy, including storage of 
such energy, 
‘‘(IV) designed to capture and se-
quester carbon dioxide emissions, 
‘‘(V) designed to refine or blend 
renewable fuels or to produce energy 
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conservation 
technologies 
(including 
energy-conserving lighting technologies 
and smart grid technologies), or 
‘‘(VI) other advanced energy prop-
erty designed to reduce greenhouse gas 
emissions as may be determined by the 
Secretary, and 
‘‘(ii) any portion of the qualified in-
vestment of which is certified by the Sec-
retary under subsection (d) as eligible for a 
credit under this section. 
‘‘(B) EXCEPTION.—Such term shall not in-
clude any portion of a project for the production 
of any property which is used in the refining or 
blending of any transportation fuel (other than 
renewable fuels). 
‘‘(2) ELIGIBLE
PROPERTY.—The term ‘eligible 
property’ means any property which is part of a 
qualifying advanced energy project and is necessary 
for the production of property described in paragraph 
(1)(A)(i). 
‘‘(d) QUALIFYING ADVANCED ENERGY PROJECT PRO-
GRAM.— 
‘‘(1) ESTABLISHMENT.— 
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