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‘‘(C) AWARD NOT SUBJECT TO INDIVIDUAL
ALTERNATIVE MINIMUM TAX.—No award received
under this subsection shall be included in gross
income for purposes of determining alternative
minimum taxable income.
‘‘(c) WHISTLEBLOWER OFFICE.—
‘‘(1) IN GENERAL.—There is established in the
Internal Revenue Service an office to be known as the
‘Whistleblower Office’ which—
‘‘(A) shall analyze information received
from any individual described in subsection (b)
and either investigate the matter itself or assign
it to the appropriate Internal Revenue Service
office,
‘‘(B) shall monitor any action taken with
respect to such matter,
‘‘(C) shall inform such individual that it
has accepted the individual’s information for
further review,
‘‘(D) may require such individual and any
legal representative of such individual to not dis-
close any information so provided,
‘‘(E) may ask for additional assistance from
such individual or any legal representative of
such individual, and
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‘‘(F) shall determine the amount to be
awarded to such individual under subsection (b).
‘‘(2) FUNDING FOR OFFICE.—From the amounts
available for expenditure under subsection (a), the
Whistleblower Office shall be credited with an amount
equal to the awards made under subsection (b). These
funds shall be used to maintain the Whistleblower Of-
fice and also to reimburse other Internal Revenue
Service offices for related costs, such as costs of inves-
tigation and collection.
‘‘(3) REQUEST FOR ASSISTANCE.—
‘‘(A) IN
GENERAL.—Any assistance re-
quested under paragraph (1)(E) shall be under
the direction and control of the Whistleblower Of-
fice or the office assigned to investigate the mat-
ter under subparagraph (A). To the extent the
disclosure of any returns or return information
to the individual or legal representative is re-
quired for the performance of such assistance,
such disclosure shall be pursuant to a contract
entered into between the Secretary and the re-
cipients of such disclosure subject to section
6103(n).
‘‘(B) FUNDING OF ASSISTANCE.—From the
funds made available to the Whistleblower Office
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under paragraph (2), the Whistleblower Office
may reimburse the costs incurred by any legal
representative in providing assistance described
in subparagraph (A).’’.
(b) EFFECTIVE DATE.—The amendments made by this
section shall apply to information provided on or after the
date of the enactment of this Act.
SEC. 489. PROTECTION OF OVERTIME PAY.
Section 13 of the Fair Labor Standards Act of 1938
(29 U.S.C. 213) is amended by adding at the end the fol-
lowing:
‘‘(k)(1) The Secretary shall not promulgate any rule
under subsection (a)(1) that exempts from the overtime pay
provisions of section 7 any employee who earns less than
$23,660 per year.
‘‘(2) The Secretary shall not promulgate any rule
under subsection (a)(1) concerning the right to overtime
pay that is not as protective, or more protective, of the over-
time pay rights of employees in the occupations or job clas-
sifications described in paragraph (3) as the protections
provided for such employees under the regulations in effect
under such subsection on March 31, 2003.
‘‘(3) The occupations or job classifications described in
this paragraph are as follows:
‘‘(A) Any worker paid on an hourly basis.
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‘‘(B) Blue collar workers.
‘‘(C) Any worker provided overtime under a col-
lective bargaining agreement.
‘‘(D) Team leaders.
‘‘(E) Computer programmers.
‘‘(F) Registered nurses.
‘‘(G) Licensed practical nurses.
‘‘(H) Nurse midwives.
‘‘(I) Nursery school teachers.
‘‘(J) Oil and gas pipeline workers.
‘‘(K) Oil and gas field workers.
‘‘(L) Oil and gas platform workers.
‘‘(M) Refinery workers.
‘‘(N) Steel workers.
‘‘(O) Shipyard and ship scrapping workers.
‘‘(P) Teachers.
‘‘(Q) Technicians.
‘‘(R) Journalists.
‘‘(S) Chefs.
‘‘(T) Cooks.
‘‘(U) Police officers.
‘‘(V) Firefighters.
‘‘(W) Fire sergeants.
‘‘(X) Police sergeants.
‘‘(Y) Emergency medical technicians.
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‘‘(Z) Paramedics.
‘‘(AA) Waste disposal workers.
‘‘(BB) Day care workers.
‘‘(CC) Maintenance employees.
‘‘(DD) Production line employees.
‘‘(EE) Construction employees.
‘‘(FF) Carpenters.
‘‘(GG) Mechanics.
‘‘(HH) Plumbers.
‘‘(II) Iron workers.
‘‘(JJ) Craftsmen.
‘‘(KK) Operating engineers.
‘‘(LL) Laborers.
‘‘(MM) Painters.
‘‘(NN) Cement masons.
‘‘(OO) Stone and brick masons.
‘‘(PP) Sheet metal workers.
‘‘(QQ) Utility workers.
‘‘(RR) Longshoremen.
‘‘(SS) Stationary engineers.
‘‘(TT) Welders.
‘‘(UU) Boilermakers.
‘‘(VV) Funeral directors.
‘‘(WW) Athletic trainers.
‘‘(XX) Outside sales employees.
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‘‘(YY) Inside sales employees.
‘‘(ZZ) Grocery store managers.
‘‘(AAA) Financial services industry workers.
‘‘(BBB) Route drivers.
‘‘(CCC) Assistant retail managers.
‘‘(4) Any portion of a rule promulgated under sub-
section (a)(1) after March 31, 2003, that modifies the over-
time pay provisions of section 7 in a manner that is incon-
sistent with paragraphs (2) and (3) shall have no force or
effect as it relates to the occupation or job classification in-
volved.’’.
SEC. 490. PROTECTION OF OVERTIME PAY.
Section 13 of the Fair Labor Standards Act of 1938
(29 U.S.C. 213) is amended by adding at the end the fol-
lowing:
‘‘(k) Notwithstanding the provisions of subchapter II
of chapter 5 and chapter 7 of title 5, United States Code
(commonly referred to as the Administrative Procedures
Act) or any other provision of law, any portion of the final
rule promulgated on April 23, 2004, revising part 541 of
title 29, Code of Federal Regulations, that exempts from the
overtime pay provisions of section 7 any employee who
would not otherwise be exempt if the regulations in effect
on March 31, 2003 remained in effect, shall have no force
or effect and that portion of such regulations (as in effect
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on March 31, 2003) that would prevent such employee from
being exempt shall remain in effect. Notwithstanding the
preceding sentence, the increased salary requirements pro-
vided for in such final rule at section 541.600 of such title
29, shall remain in effect.’’.
PART V—MISCELLANEOUS PROVISIONS
SEC. 491. ADDITION OF VACCINES AGAINST HEPATITIS A TO
LIST OF TAXABLE VACCINES.
(a) IN GENERAL.—Section 4132(a)(1) (defining tax-
able vaccine) is amended by redesignating subparagraphs
(I), (J), (K), and (L) as subparagraphs (J), (K), (L), and
(M), respectively, and by inserting after subparagraph (H)
the following new subparagraph:
‘‘(I) Any vaccine against hepatitis A.’’.
(b) 
CONFORMING
AMENDMENT.—Section
9510(c)(1)(A) is amended by striking ‘‘October 18, 2000’’
and inserting ‘‘the date of the enactment of the Jumpstart
Our Business Strength (JOBS) Act’’.
(c) EFFECTIVE DATE.—
(1) SALES, ETC.—The amendments made by this
section shall apply to sales and uses on or after the
first day of the first month which begins more than
4 weeks after the date of the enactment of this Act.
(2) DELIVERIES.—For purposes of paragraph
(1) and section 4131 of the Internal Revenue Code of
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1986, in the case of sales on or before the effective date
described in such paragraph for which delivery is
made after such date, the delivery date shall be con-
sidered the sale date.
SEC. 492. RECOGNITION OF GAIN FROM THE SALE OF A
PRINCIPAL RESIDENCE ACQUIRED IN A LIKE-
KIND EXCHANGE WITHIN 5 YEARS OF SALE.
(a) IN GENERAL.—Section 121(d) (relating to special
rules for exclusion of gain from sale of principal residence)
is amended by adding at the end the following new para-
graph:
‘‘(10) PROPERTY ACQUIRED IN LIKE-KIND EX-
CHANGE.—If a taxpayer acquired property in an ex-
change to which section 1031 applied, subsection (a)
shall not apply to the sale or exchange of such prop-
erty if it occurs during the 5-year period beginning
with the date of the acquisition of such property.’’.
(b) EFFECTIVE DATE.—The amendment made by this
section shall apply to sales or exchanges after the date of
the enactment of this Act.
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SEC. 493. MODIFICATION OF EXEMPTION FROM TAX FOR
SMALL PROPERTY AND CASUALTY INSUR-
ANCE COMPANIES.
(a) PREMIUMS AS PERCENTAGE OF GROSS RECEIPTS
INCREASED.—Section 501(c)(15)(A)(i)(II) is amended by
striking ‘‘50 percent’’ and inserting ‘‘60 percent’’.
(b) LIMITATION
ON NET WRITTEN PREMIUMS IN-
CREASED.—Section 831(b)(2) (relating to companies to
which this subsection applies) is amended—
(1) by striking ‘‘$1,200,000’’ and inserting
‘‘$1,890,000’’, and
(2) by adding at the end the following new sub-
paragraph:
‘‘(C) INFLATION ADJUSTMENTS.—
‘‘(i) IN GENERAL.—In the case of any
taxable year beginning in a calendar year
after 2005, the dollar amount in subpara-
graph (A)(i) 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) for
the calendar year in which the taxable
year begins, by substituting ‘calendar
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year 2004’ for ‘calendar year 1992’ in
subparagraph (B) thereof.
‘‘(ii) ROUNDING.—If the amount in
subparagraph (A)(i) as increased under
clause (i) is not a multiple of $10,000, such
amount shall be rounded to the nearest mul-
tiple of $10,000.’’.
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section shall
apply to taxable years beginning after December 31,
2004.
(2) TRANSITION RULE FOR COMPANIES IN RE-
CEIVERSHIP OR LIQUIDATION.—In the case of a com-
pany or association which—
(A) for the taxable year which includes
April 1, 2004, meets the requirements of section
501(c)(15)(A) of the Internal Revenue Code of
1986, as in effect for the last taxable year begin-
ning before January 1, 2004, and
(B) on April 1, 2004, is in a receivership,
liquidation, or similar proceeding under the su-
pervision of a State court,
the amendments made by this section shall apply to
taxable years beginning after the earlier of the date
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such proceeding ends (or, if later, December 31, 2004)
or December 31, 2007.
SEC. 494. TREATMENT OF CHARITABLE CONTRIBUTIONS OF
PATENTS AND SIMILAR PROPERTY.
(a) IN GENERAL.—Section 170(e)(1)(B) (relating to
certain contributions of ordinary income and capital gain
property) is amended by striking ‘‘or’’ at the end of clause
(i), by adding ‘‘or’’ at the end of clause (ii), and by insert-
ing after clause (ii) the following new clause:
‘‘(iii) of any patent, copyright, trade-
mark, trade name, trade secret, know-how,
software (other than software described in
section 197(e)(3)(A)(i)), or similar prop-
erty, or applications or registrations of such
property,’’.
(b) ADDITIONAL DEDUCTION FOR CERTAIN CONTRIBU-
TIONS
OF PATENTS
AND SIMILAR PROPERTY.—Section
170(e) is amended by adding at the end the following new
paragraph:
‘‘(7) ADDITIONAL DEDUCTION FOR CERTAIN CON-
TRIBUTIONS OF PATENTS AND SIMILAR PROPERTY.—
‘‘(A) IN GENERAL.—In the case of a chari-
table contribution of any property described in
paragraph (1)(B)(iii) (other than copyrights de-
scribed in section 1221(a)(3) or 1231(b)(1)(C) or
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property contributed to or for the use of an orga-
nization described in paragraph (1)(B)(ii)), if—
‘‘(i) the lesser of—
‘‘(I) 5 percent of the fair market
value of such property (determined at
the time of such contribution), or
‘‘(II) $1,000,000, exceeds
‘‘(ii) the amount of such contribution
as determined under paragraph (1),
then the amount of the charitable contribution of
such property otherwise taken into account
under this section shall equal the amount deter-
mined under clause (i).’’.
(c) CERTAIN DONEE INCOME FROM INTELLECTUAL
PROPERTY TREATED AS AN ADDITIONAL CHARITABLE CON-
TRIBUTION.—Section 170 is amended by redesignating sub-
section (m) as subsection (n) and by inserting after sub-
section (l) the following new subsection:
‘‘(m) CERTAIN DONEE INCOME FROM INTELLECTUAL
PROPERTY TREATED AS AN ADDITIONAL CHARITABLE CON-
TRIBUTION.—
‘‘(1) TREATMENT
AS
ADDITIONAL
CONTRIBU-
TION.—In the case of a taxpayer who makes a quali-
fied intellectual property contribution, the deduction
allowed under subsection (a) for each taxable year of
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the taxpayer ending on or after the date of such con-
tribution shall be increased (subject to the limitations
under subsection (b)) by the applicable percentage of
qualified donee income with respect to such contribu-
tion which is properly allocable to such year under
this subsection.
‘‘(2) QUALIFIED DONEE INCOME.—For purposes
of this subsection, the term ‘qualified donee income’
means any net income received by or accrued to the
donee which is properly allocable to the qualified in-
tellectual property.
‘‘(3) ALLOCATION OF QUALIFIED DONEE INCOME
TO TAXABLE YEARS OF DONOR.—For purposes of this
subsection, qualified donee income shall be treated as
properly allocable to a taxable year of the donor if
such income is received by or accrued to the donee for
the taxable year of the donee which ends within or
with such taxable year of the donor.
‘‘(4) 10-YEAR LIMITATION.—Income shall not be
treated as properly allocable to qualified intellectual
property for purposes of this subsection if such income
is received by or accrued to the donee after the 10-
year period beginning on the date of the contribution
of such property.
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‘‘(5) BENEFIT LIMITED TO LIFE OF INTELLEC-
TUAL
PROPERTY.—Income shall not be treated as
properly allocable to qualified intellectual property
for purposes of this subsection if such income is re-
ceived by or accrued to the donee after the expiration
of the legal life of such property.
‘‘(6) APPLICABLE
PERCENTAGE.—For purposes
of this subsection, the term ‘applicable percentage’
means the percentage determined under the following
table which corresponds to a taxable year of the donor
ending on or after the date of the qualified intellectual
property contribution:
‘‘Taxable Year of Donor End-
ing On or After Date of
Contribution:
Applicable Percentage:
1st or 2d .........................................................................................
100
3rd ...................................................................................................
4th ...................................................................................................
5th ...................................................................................................
6th ...................................................................................................
7th ...................................................................................................
8th ...................................................................................................
9th ...................................................................................................
10th .................................................................................................
11th or 12th ....................................................................................
10.
‘‘(7) QUALIFIED INTELLECTUAL PROPERTY CON-
TRIBUTION.—For purposes of this subsection, the term
‘qualified intellectual property contribution’ means
any charitable contribution of qualified intellectual
property—
‘‘(A) the amount of which taken into ac-
count under this section—
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‘‘(i) is reduced by reason of subsection
(e)(1), or
‘‘(ii) 
determined 
under 
subsection
(e)(7), and
‘‘(B) with respect to which the donor in-
forms the donee at the time of such contribution
that the donor intends to treat such contribution
as a qualified intellectual property contribution
for purposes of this subsection and section
6050L.
‘‘(8) QUALIFIED INTELLECTUAL PROPERTY.—For
purposes of this subsection, the term ‘qualified intel-
lectual property’ means property described in sub-
section (e)(1)(B)(iii) (other than copyrights described
in section 1221(a)(3) or 1231(b)(1)(C) or property
contributed to or for the use of an organization de-
scribed in subsection (e)(1)(B)(ii)).
‘‘(9) OTHER SPECIAL RULES.—
‘‘(A) APPLICATION
OF
LIMITATIONS
ON
CHARITABLE
CONTRIBUTIONS.—Any 
increase
under this subsection of the deduction provided
under subparagraph (a) shall be treated for pur-
poses of subsection (b) as a deduction which is
attributable to a charitable contribution to the
donee to which such increase relates.
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‘‘(B) 
NET
INCOME
DETERMINED
BY
DONEE.—The net income taken into account
under paragraph (2) shall not exceed the amount
of 
such 
income 
reported 
under 
section
6050L(b)(1).
‘‘(C) DEDUCTION LIMITED TO 12 TAXABLE
YEARS.—Except as may be provided under sub-
paragraph (D)(i), this subsection shall not apply
with respect to any qualified intellectual prop-
erty contribution for any taxable year of the
donor after the 12th taxable year of the donor
which ends on or after the date of such contribu-
tion.
‘‘(D) REGULATIONS.—The Secretary may
issue regulations or other guidance to carry out
the purposes of this subsection, including regula-
tions or guidance—
‘‘(i) modifying the application of this
subsection in the case of a donor or donee
with a short taxable year, and
‘‘(ii) providing for the determination
of an amount to be treated as net income of
the donee which is properly allocable to
qualified intellectual property in the case of
a donee who uses such property to further
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a purpose or function constituting the basis
of the donee’s exemption under section 501
(or, in the case of a governmental unit, any
purpose described in section 170(c)) and
does not possess a right to receive any pay-
ment from a third party with respect to
such property.’’.
(d) REPORTING REQUIREMENTS.—Section 6050L (re-
lating to returns relating to certain dispositions of donated
property) is amended to read as follows:
‘‘SEC. 6050L. RETURNS RELATING TO CERTAIN DONATED
PROPERTY.
‘‘(a) DISPOSITIONS OF DONATED PROPERTY.—
‘‘(1) IN GENERAL.—If the donee of any chari-
table deduction property sells, exchanges, or otherwise
disposes of such property within 2 years after its re-
ceipt, the donee shall make a return (in accordance
with forms and regulations prescribed by the Sec-
retary) showing—
‘‘(A) the name, address, and TIN of the
donor,
‘‘(B) a description of the property,
‘‘(C) the date of the contribution,
‘‘(D) the amount received on the disposi-
tion, and
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‘‘(E) the date of such disposition.
‘‘(2) 
DEFINITIONS.—For 
purposes 
of 
this
subsection—
‘‘(A) CHARITABLE DEDUCTION PROPERTY.—
The term ‘charitable deduction property’ means
any property (other than publicly traded securi-
ties) contributed in a contribution for which a
deduction was claimed under section 170 if the
claimed value of such property (plus the claimed
value of all similar items of property donated by
the donor to 1 or more donees) exceeds $5,000.
‘‘(B) PUBLICLY TRADED SECURITIES.—The
term ‘publicly traded securities’ means securities
for which (as of the date of the contribution)
market quotations are readily available on an es-
tablished securities market.
‘‘(b) QUALIFIED INTELLECTUAL PROPERTY CONTRIBU-
TIONS.—
‘‘(1) IN GENERAL.—Each donee with respect to a
qualified intellectual property contribution shall make
a return (at such time and in such form and manner
as the Secretary may by regulations prescribe) with
respect to each specified taxable year of the donee
showing—
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‘‘(A) the name, address, and TIN of the
donor,
‘‘(B) a description of the qualified intellec-
tual property contributed,
‘‘(C) the date of the contribution, and
‘‘(D) the amount of net income of the donee
for the taxable year which is properly allocable
to the qualified intellectual property (determined
without regard to paragraph (9)(B) of section
170(m) and with the modifications described in
paragraphs (4) and (5) of such section).
‘‘(2) 
DEFINITIONS.—For 
purposes 
of 
this
subsection—
‘‘(A) IN GENERAL.—Terms used in this sub-
section which are also used in section 170(m)
have the respective meanings given such terms in
such section.
‘‘(B) SPECIFIED TAXABLE YEAR.—The term
‘specified taxable year’ means, with respect to
any qualified intellectual property contribution,
any taxable year of the donee any portion of
which is part of the 10-year period beginning on
the date of such contribution.
‘‘(c) STATEMENT TO BE FURNISHED TO DONORS.—
Every person making a return under subsection (a) or (b)
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shall furnish a copy of such return to the donor at such
time and in such manner as the Secretary may by regula-
tions prescribe.’’.
(e) PROCESSING FEE.—Section 170, as amended by
subsection (b), is amended by redesignating subsection (n)
as subsection (o) and by inserting after subsection (m) the
following new subsection:
‘‘(n) PROCESSING FEE.—In the case of a deduction al-
lowed for any taxable year under this section with respect
to a charitable contribution of any property described in
subsection (e)(1)(B)(iii) (other than copyrights described in
section 1221(a)(3) or 1231(b)(1)(C) or property contributed
to or for the use of an organization described in subsection
(e)(1)(B)(ii)), the taxpayer shall include, with the tax-
payer’s return of tax including such deduction, a fee equal
to 1 percent of the amount of such deduction. Such fee shall
be credited by the Secretary to the operations of the Exempt
Organizations unit within the Internal Revenue Service.’’.
(f) MODIFICATION
OF
SUBSTANTIAL
VALUATIONS
MISSTATEMENT PENALTY
FOR CHARITABLE CONTRIBU-
TIONS OF PROPERTY.—
(1) 
SUBSTANTIAL
MISSTATEMENTS.—Section
6662(e)(1)(A) (relating to substantial valuation
misstatements under chapter 1) is amended by insert-
ing ‘‘(50 percent or more in the case of a charitable
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contribution of any property described in section
170(e)(1)(B)(iii))’’ after ‘‘200 percent or more’’.
(2) 
GROSS
MISSTATEMENTS.—Section
6662(h)(2)(A) 
(defining 
gross 
valuation
misstatements) is amended by striking clause (ii) and
inserting the following new clauses:
‘‘(ii) ‘100 percent or more’ for ‘50 per-
cent or more’,
‘‘(iii) ‘25 percent or less’ for ‘50 per-
cent or less’, and’’.
(g) ANTI-ABUSE
RULES.—The Secretary of the
Treasury—
(1) may prescribe such regulations or other guid-
ance as may be necessary or appropriate to prevent
the avoidance 
of 
the 
purposes 
of 
paragraphs
(1)(B)(iii) and (7) of section 170(e) of the Internal
Revenue Code of 1986 (as added by subsections (a)
and (b)), including preventing—
(A) the circumvention of the reduction of
the charitable deduction by embedding or bun-
dling the patent or similar property as part of
a charitable contribution of property that in-
cludes the patent or similar property,
(B) the manipulation of the basis of the
property to increase the amount of the charitable
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deduction through the use of related persons,
pass-thru entities, or other intermediaries, or
through the use of any provision of law or regu-
lation (including the consolidated return regula-
tions), and
(C) a donor from changing the form of the
patent or similar property to property of a form
for which different deduction rules would apply,
and
(2) shall prescribe guidance on appraisal stand-
ards for contributions of property described in section
170(e)(1)(B)(iii) of the Internal Revenue Code of
1986 (as added by this section).
(h) EFFECTIVE DATE.—The amendments made by this
section shall apply to contributions made after the date of
the enactment of this Act.
SEC. 495. INCREASE IN AGE OF MINOR CHILDREN WHOSE
UNEARNED INCOME IS TAXED AS IF PARENT’S
INCOME.
(a) IN GENERAL.—Section 1(g)(2)(A) (relating to
child to whom subsection applies) is amended by striking
‘‘age 14’’ and inserting ‘‘age 18’’.
(b) EFFECTIVE DATE.—The amendment made by this
section shall apply to taxable years beginning after Decem-
ber 31, 2003.
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SEC. 496. HOLDING PERIOD FOR PREFERRED STOCK.
(a) IN
GENERAL.—Section 1(h)(11)(B)(iii)(I) is
amended to read as follows:
‘‘(I) with respect to which the
holding period requirements of section
246(c) are not met, determined by sub-
stituting ‘60 days’ for ‘45’ days each
place it appears, by substituting ‘120-
day’ for ‘90-day’ each place it appears,
and by substituting ‘120 days’ for ‘90
days’ and ‘240-day’ for ‘180-day’ in
paragraph (2).’’
(b) EFFECTIVE DATE.—The amendments made by this
section shall apply to taxable years beginning after the date
of the enactment of this Act.
SEC. 497. SUBSTANTIAL PRESENCE TEST REQUIRED TO DE-
TERMINE BONA FIDE RESIDENCE IN UNITED
STATES POSSESSIONS.
(a) SUBSTANTIAL PRESENCE TEST.—
(1) IN GENERAL.—Subpart D of part III of sub-
chapter N of chapter 1 (relating to possessions of the
United States) is amended by adding at the end the
following new section:
‘‘SEC. 937. BONA FIDE RESIDENT.
‘‘For purposes of this subpart, section 865(g)(3), sec-
tion 876, section 881(b), paragraphs (2) and (3) of section
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901(b), section 957(c), section 3401(a)(8)(C), and section
7654(a), the term ‘bona fide resident’ means a person who
satisfies a test, determined by the Secretary, similar to the
substantial presence test under section 7701(b)(3) with re-
spect to Guam, American Samoa, the Northern Mariana
Islands, Puerto Rico, or the Virgin Islands, as the case may
be.’’.
(2) CONFORMING AMENDMENTS.—
(A) The following provisions are amended
by striking ‘‘during the entire taxable year’’ and
inserting ‘‘for the taxable year’’:
(i) Paragraph (3) of section 865(g).
(ii) Subsection (a) of section 876(a).
(iii) Paragraphs (2) and (3) of section
901(b).
(iv) Subsection (a) of section 931.
(v) Paragraphs (1) and (2) of section
933.
(B) Section 931(d) is amended by striking
paragraph (3).
(C) Section 932 is amended by striking ‘‘at
the close of the taxable year’’ and inserting ‘‘for
the taxable year’’ each place it appears.
(3) CLERICAL AMENDMENT.—The table of sec-
tions of subpart D of part III of subchapter N of
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chapter 1 is amended by adding at the end the fol-
lowing new item:
‘‘Sec. 937. Bona fide resident.’’.
(b) REPORTING REQUIREMENTS
FOR BONA FIDE
RESIDENTS OF THE VIRGIN ISLANDS.—Paragraph (2) of
section 932(c) (relating to treatment of Virgin Islands resi-
dents) is amended to read as follows:
‘‘(2) FILING REQUIREMENTS.—
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (4), each individual to whom this sub-
section applies for the taxable year shall file an
income tax return for the taxable year with—
‘‘(i) the Virgin Islands, and
‘‘(ii) the United States.
‘‘(B) FILING
FEE.—The Secretary shall
charge a processing fee with respect to the return
filed under subparagraph (A)(ii) of an amount
appropriate to cover the administrative costs of
the requirements of subparagraph (A)(ii) and the
enforcement of the purposes of subparagraph
(A)(ii).’’.
(c) PENALTIES.—
(1) IN GENERAL.—Part I of subchapter B of
chapter 68 is amended by adding at the end the fol-
lowing new section:
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‘‘SEC. 6717. FAILURE OF VIRGIN ISLANDS RESIDENTS TO
FILE RETURNS WITH THE UNITED STATES.
‘‘(a) PENALTY AUTHORIZED.—The Secretary may im-
pose a civil money penalty on any person who violates, or
causes any violation of, the requirements of section
932(c)(2)(A)(ii).
‘‘(b) AMOUNT OF PENALTY.—
‘‘(1) IN GENERAL.—Except as provided in sub-
section (c), the amount of any civil penalty imposed
under subsection (a) shall not exceed $5,000.
‘‘(2) REASONABLE CAUSE EXCEPTION.—No pen-
alty shall be imposed under subsection (a) with re-
spect to any violation if such violation was due to
reasonable cause and the taxpayer acted in good faith.
‘‘(c) WILLFUL VIOLATIONS.—In the case of any person
willfully violating, or willfully causing any violation of,
any requirement of section 932(c)(2)(A)(ii)—
‘‘(1) the maximum penalty under subsection
(b)(1) shall be increased to $25,000 and
‘‘(2) subsection (b)(2) shall not apply.’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions for Part I of subchapter B of chapter 68 is
amended by adding at the end the following new item:
‘‘Sec. 6717. Failure of Virgin Islands residents to file returns with
the United States.’’.
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(d) EFFECTIVE DATE.—The amendments made by this
section shall apply to taxable years ending after the date
of the enactment of this Act.
TITLE 
V—PROTECTION 
OF
UNITED 
STATES 
WORKERS
FROM COMPETITION OF FOR-
EIGN WORKFORCES
SEC. 501. LIMITATIONS ON OFF-SHORE PERFORMANCE OF
CONTRACTS.
(a) LIMITATIONS.—
(1) IN GENERAL.—The Office of Federal Procure-
ment Policy Act (41 U.S.C. 403 et seq.) is amended
by adding at the end the following new section:
‘‘SEC. 42. LIMITATIONS ON OFF-SHORE PERFORMANCE OF
CONTRACTS.
‘‘(a) CONVERSIONS TO CONTRACTOR PERFORMANCE OF
FEDERAL ACTIVITIES.—An activity or function of an exec-
utive agency that is converted to contractor performance
under Office of Management and Budget Circular A–76
may not be performed by the contractor or any subcon-
tractor at a location outside the United States except to the
extent that such activity or function was previously per-
formed by Federal Government employees outside the
United States.
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‘‘(b) OTHER FEDERAL CONTRACTS.—(1) A contract
that is entered into by the head of an executive agency may
not be performed outside the United States except to meet
a requirement of the executive agency for the contract to
be performed specifically at a location outside the United
States.
‘‘(2) The prohibition in paragraph (1) does not apply
in the case of a contract of an executive agency if—
‘‘(A) the President determines in writing that it
is necessary in the national security interests of the
United States for the contract to be performed outside
the United States; or
‘‘(B) the head of such executive agency makes a
determination and reports such determination on a
timely basis to the Director of the Office of Manage-
ment and Budget that—
‘‘(i) the property or services needed by the
executive agency are available only by means of
performance of the contract outside the United
States; and
‘‘(ii) no property or services available by
means of performance of the contract inside the
United States would satisfy the executive agen-
cy’s need.
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‘‘(3) Paragraph (1) does not apply to the performance
of a contract outside the United States under the exception
provided in subsection (a).
‘‘(c) STATE CONTRACTS.—(1) Except as provided in
paragraph (2), funds appropriated for financial assistance
for a State may not be disbursed to or for such State during
a fiscal year unless the chief executive of that State has
transmitted to the Administrator for Federal Procurement
Policy, not later than April 1 of the preceding fiscal year,
a written certification that none of such funds will be ex-
pended for the performance outside the United States of con-
tracts entered into by such State.
‘‘(2) The prohibition on disbursement of funds to or
for a State under paragraph (1) does not apply with respect
to the performance of a State contract outside the United
States if—
‘‘(A) the chief executive of such State—
‘‘(i) determines that the property or services
needed by the State are available only by means
of performance of the contract outside the United
States and no property or services available by
means of performance of the contract inside the
United States would satisfy the State’s need; and
‘‘(ii) transmits a notification of such deter-
mination to the head of the executive agency of
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the United States that administers the authority
under which such funds are disbursed to or for
the State; and
‘‘(B) the head of the executive agency receiving
the notification of such determination—
‘‘(i) confirms that the facts warrant the de-
termination;
‘‘(ii) approves the determination; and
‘‘(iii) transmits a notification of the ap-
proval of the determination to the Director of the
Office of Management and Budget.
‘‘(3) In this subsection, the term ‘State’ means each
of the several States of the United States, the District of
Columbia, the Commonwealth of Puerto Rico, the Common-
wealth of the Northern Mariana Islands, the Virgin Islands,
Guam, American Samoa, and the Trust Territory of the
Pacific Islands.
‘‘(d) Subsections (b) and (c) shall not apply to pro-
curement covered by the World Trade Organization Govern-
ment Procurement Agreement.
‘‘(e) NATIONAL SECURITY EXEMPTION.—Subsection
(b) shall not apply to any procurement for national secu-
rity purposes entered into by—
‘‘(1) the Department of Defense or any agency or
entity thereof;
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‘‘(2) the Department of the Army, the Depart-
ment of the Navy, the Department of the Air Force,
or any agency or entity of any of the military depart-
ments;
‘‘(3) the Department of Homeland Security;
‘‘(4) the Department of Energy or any agency or
entity thereof, with respect to the national security
programs of that Department; or
‘‘(5) any element of the intelligence community.
‘‘(f) RESPONSIBILITIES OF OMB.—The Director of the
Office of Management and Budget shall—
‘‘(1) maintain—
‘‘(A) the waivers granted under subsection
(b)(2), together with the determinations and cer-
tifications on which such waivers were based;
and
‘‘(B) the notifications received under sub-
section (c)(2)(B)(iii); and
‘‘(2) submit to Congress promptly after the end
of each quarter of each fiscal year a report that sets
forth—
‘‘(A) the waivers that were granted under
subsection (b)(2) during such quarter; and
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‘‘(B) the notifications that were received
under subsection (c)(2)(B)(iii) during such quar-
ter.
‘‘(g) ANNUAL GAO REVIEW.—The Comptroller Gen-
eral shall—
‘‘(1) review, each fiscal year, the waivers granted
during such fiscal year under subsection (b)(2) and
the disbursements of funds authorized pursuant to the
exceptions in subsections (c)(2) and (e); and
‘‘(2) promptly after the end of such fiscal year,
transmit to Congress a report containing a list of the
contracts covered by such waivers and exception to-
gether with a brief description of the performance of
each such contract to the maximum extent feasible
outside the United States.’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions in section 1(b) of such Act is amended by add-
ing at the end the following new item:
‘‘Sec. 42. Limitations on off-shore performance of contracts.’’.
(b) INAPPLICABILITY TO STATES DURING FIRST TWO
FISCAL YEARS.—Section 42(c) of the Office of Federal Pro-
curement Policy Act (as added by subsection (a)) shall not
apply to disbursements of funds to a State during the fiscal
year in which this Act is enacted and the next fiscal year.
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SEC. 502. REPEAL OF SUPERSEDED LAW.
Section 647 of the Transportation, Treasury, and
Independent Agencies Appropriations Act, 2004 (division
F of Public Law 108–199) is amended by striking sub-
section (e).
SEC. 503. EFFECTIVE DATE AND APPLICABILITY.
(a) IN GENERAL.—This title and the amendments
made by this title shall take effect 30 days after the Sec-
retary of Commerce certifies that the amendments made by
this title will not result in the loss of more jobs than it
will protect and will not cause harm to the United States
economy. The initial certification shall be made by the Sec-
retary of Commerce no later than 90 days after the enact-
ment of this Act. Such certification must be renewed on or
before January 1 of each year in order for the amendments
made by this title to be in effect for that year.
(b) CONSISTENCY
WITH
INTERNATIONAL
AGREE-
MENTS.—The provisions of this title shall not apply to the
extent that they may be inconsistent with obligations under
international agreements. Within 90 days of this legisla-
tion, the Office of Management and Budget, in consultation
with the Office of the United States Trade Representative,
shall develop guidelines for the implementation of this pro-
vision.
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TITLE VI—OTHER PROVISIONS
Subtitle A—Provisions Relating to
Housing
SEC. 601. TREATMENT OF QUALIFIED MORTGAGE BONDS.
(a) YEAR HOLIDAY.—Section 143(a)(2)(A)(iv) of the
Internal Revenue Code of 1986 shall not apply to amounts
received during the 1-year period beginning on the date of
the enactment of this Act with respect to any bond out-
standing on such date.
(b) REPEAL OF REQUIRED USE OF CERTAIN PRIN-
CIPAL
REPAYMENTS
ON
MORTGAGE
SUBSIDY
BOND
FINANCINGS TO REDEEM BONDS.—
(1) IN GENERAL.—Subparagraph (A) of section
143(a)(2) (defining qualified mortgage issue) is
amended by adding ‘‘and’’ at the end of clause (ii),
by striking ‘‘, and’’ at the end of clause (iii) and in-
serting a period, and by striking clause (iv) and the
last sentence.
(2) CONFORMING
AMENDMENT.—Clause (ii) of
section 143(a)(2)(D) is amended by striking ‘‘(and
clause (iv) of subparagraph (A))’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to bonds originally
issued after the date of the enactment of this Act.
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SEC. 602. PREMIUMS FOR MORTGAGE INSURANCE.
(a) IN GENERAL.—Paragraph (3) of section 163(h)
(relating to qualified residence interest) is amended by add-
ing after subparagraph (D) the following new subpara-
graph:
‘‘(E) MORTGAGE
INSURANCE
PREMIUMS
TREATED AS INTEREST.—
‘‘(i) IN GENERAL.—Premiums paid or
accrued for qualified mortgage insurance by
a taxpayer during the taxable year in con-
nection with acquisition indebtedness with
respect to a qualified residence of the tax-
payer shall be treated for purposes of this
subsection as qualified residence interest.
‘‘(ii) PHASEOUT.—The amount other-
wise allowable as a deduction under clause
(i) shall be reduced (but not below zero) by
10 percent of such amount for each $1,000
($500 in the case of a married individual
filing a separate return) (or fraction there-
of) that the taxpayer’s adjusted gross in-
come for the taxable year exceeds $100,000
($50,000 in the case of a married indi-
vidual filing a separate return).’’.
(b) DEFINITION AND SPECIAL RULES.—Paragraph (4)
of section 163(h) (relating to other definitions and special
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rules) is amended by adding at the end the following new
subparagraphs:
‘‘(E) QUALIFIED MORTGAGE INSURANCE.—
The 
term 
‘qualified 
mortgage 
insurance’
means—
‘‘(i) the Home Loan Guaranty Pro-
gram of the Department of Veterans Affairs,
and mortgage insurance provided by the
Federal Housing Administration or the
Rural Housing Administration, and
‘‘(ii) private mortgage insurance (as
defined by section 2 of the Homeowners
Protection Act of 1998 (12 U.S.C. 4901), as
in effect on the date of the enactment of this
subparagraph).
‘‘(F) SPECIAL RULES FOR PREPAID QUALI-
FIED MORTGAGE INSURANCE.—Any amount paid
by the taxpayer for qualified mortgage insurance
that is properly allocable to any mortgage the
payment of which extends to periods that are
after the close of the taxable year in which such
amount is paid shall be chargeable to capital ac-
count and shall be treated as paid in such peri-
ods to which so allocated. No deduction shall be
allowed for the unamortized balance of such ac-
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count if such mortgage is satisfied before the end
of its term. The preceding sentences shall not
apply to amounts paid for qualified mortgage
insurance provided by the Department of Vet-
erans Affairs or the Rural Housing Administra-
tion.’’.
(c) INFORMATION RETURNS RELATING TO MORTGAGE
INSURANCE.—Section 6050H (relating to returns relating
to mortgage interest received in trade or business from indi-
viduals) is amended by adding at the end the following new
subsection:
‘‘(h) RETURNS RELATING TO MORTGAGE INSURANCE
PREMIUMS.—
‘‘(1) IN
GENERAL.—The Secretary may pre-
scribe, by regulations, that any person who, in the
course of a trade or business, receives from any indi-
vidual premiums for mortgage insurance aggregating
$600 or more for any calendar year, shall make a re-
turn with respect to each such individual. Such re-
turn shall be in such form, shall be made at such
time, and shall contain such information as the Sec-
retary may prescribe.
‘‘(2) STATEMENT TO BE FURNISHED TO INDIVID-
UALS WITH RESPECT TO WHOM INFORMATION IS RE-
QUIRED.—Every person required to make a return
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under paragraph (1) shall furnish to each individual
with respect to whom a return is made a written
statement showing such information as the Secretary
may prescribe. Such written statement shall be fur-
nished on or before January 31 of the year following
the calendar year for which the return under para-
graph (1) was required to be made.
‘‘(3) SPECIAL
RULES.—For purposes of this
subsection—
‘‘(A) rules similar to the rules of subsection
(c) shall apply, and
‘‘(B) 
the 
term 
‘mortgage 
insurance’
means—
‘‘(i) the Home Loan Guaranty Pro-
gram of the Department of Veterans Affairs,
and mortgage insurance provided by the
Federal Housing Administration or the
Rural Housing Administration, and
‘‘(ii) private mortgage insurance (as
defined by section 2 of the Homeowners
Protection Act of 1998 (12 U.S.C. 4901), as
in effect on the date of the enactment of this
subparagraph).’’.
(d) EFFECTIVE DATE.—The amendments made by this
section shall apply to amounts paid or accrued in taxable
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years beginning after December 31, 2004, and ending before
January 1, 2006.
SEC. 603. INCREASE IN HISTORIC REHABILITATION CREDIT
FOR CERTAIN LOW-INCOME HOUSING FOR
THE ELDERLY.
(a) IN GENERAL.—Section 47 (relating to rehabilita-
tion credit) is amended by adding at the end the following
new subsection:
‘‘(e) SPECIAL RULE REGARDING CERTAIN HISTORIC
STRUCTURES.—In the case of any qualified rehabilitation
expenditure 
with 
respect 
to 
any 
certified 
historic
structure—
‘‘(1) which is placed in service after the date of
the enactment of this subsection,
‘‘(2) which is part of a qualified low-income
building with respect to which a credit under section
42 is allowed, and
‘‘(3) substantially all of the residential rental
units of which are used for tenants who have attained
the age of 65,
subsection (a)(2) shall be applied by substituting ‘25 per-
cent’ for ‘20 percent’.’’.
(b) APPLICATION OF MACRS.—The Internal Revenue
Code of 1986 shall be applied and administered as if para-
graph (4)(X) of section 251(d) of the Tax Reform Act of
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1986 as applied to the amendments made by section 201
of such Act had not been enacted with respect to any prop-
erty described in such paragraph and placed in service after
the date of the enactment of this Act.
(c) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply to property placed in service after
the date of the enactment of this Act.
Subtitle B—Provisions Relating to
Bonds
SEC. 611. EXPANSION OF NEW YORK LIBERTY ZONE TAX
BENEFITS.
(a) ADDITIONAL EXTENSION OF TAX-EXEMPT BOND
FINANCING.—Section 1400L(d)(2)(D), as amended by this
Act, is amended by striking ‘‘2006’’ and inserting ‘‘2010’’.
(b) EXTENSION OF ADVANCE REFUNDINGS.—Section
1400L(e)(1) is amended by striking ‘‘2005’’ and inserting
‘‘2006’’.
SEC. 612. MODIFICATIONS OF TREATMENT OF QUALIFIED
ZONE ACADEMY BONDS.
(a) PROCEEDS OF BONDS MAY BE USED FOR CON-
STRUCTION AND LAND ACQUISITION.—Paragraph (5) of
section 1397E(d) (defining qualified purpose) is amended—
(1) by striking ‘‘rehabilitating or repairing’’ in
subparagraph (A) and inserting ‘‘constructing, reha-
bilitating, or repairing’’, and
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(2) by redesignating subparagraphs (B), (C),
and (D) as subparagraphs (C), (D), and (E), respec-
tively, and by inserting after subparagraph (A) the
following:
‘‘(B) acquiring the land on which the facil-
ity is to be constructed,’’.
(b) EFFECTIVE DATE.—The amendments made by this
section shall apply to obligations issued after December 31,
2003.
SEC. 613. MODIFICATIONS OF AUTHORITY OF INDIAN TRIB-
AL GOVERNMENTS TO ISSUE TAX-EXEMPT
BONDS.
(a) IN GENERAL.—Paragraph (1) of section 7871(c)
(relating to Indian tribal governments treated as States for
certain purposes) is amended to read as follows:
‘‘(1) IN GENERAL.—Subsection (a) of section 103
shall apply to any obligation issued by an Indian
tribal government (or subdivision thereof) only if—
‘‘(A) such obligation—
‘‘(i) is part of an issue 95 percent or
more of the net proceeds of which are to be
used to finance any facility located on an
Indian reservation, and
‘‘(ii) is issued before January 1, 2006,
or
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‘‘(B) such obligation is part of an issue sub-
stantially all of the proceeds of which are to be
used in the exercise of any essential govern-
mental function.’’.
(b) SPECIAL RULES AND DEFINITIONS.—Subsection
(c) of section 7871 is amended by inserting at the end the
following new paragraph:
‘‘(4) SPECIAL RULES AND DEFINITIONS.—
‘‘(A) EXCLUSION OF GAMING.—An obliga-
tion described in subparagraph (A) or (B) of
paragraph (1) may not be used to finance any
portion of a building in which class II or III
gaming (as defined in section 4 of the Indian
Gaming Regulatory Act (25 U.S.C. 2702)) is
conducted or housed.
‘‘(B) INDIAN RESERVATION.—For purposes
of paragraph (1), the term ‘Indian reservation’
means—
‘‘(i) a reservation, as defined in section
4(10) of the Indian Child Welfare Act of
1978 (25 U.S.C. 1903(10)), and
‘‘(ii) lands held under the provisions of
the Alaska Native Claims Settlement Act
(43 U.S.C. 1601 et seq.) by a Native cor-
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poration as defined in section 3(m) of such
Act (43 U.S.C. 1602(m)).’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall apply to obligations issued after the date of
the enactment of this Act.
SEC. 614. DEFINITION OF MANUFACTURING FACILITY FOR
SMALL ISSUE BONDS.
(a) IN GENERAL.—Section 144(a)(12) (relating to ter-
mination dates) is amended by striking subparagraph (C)
and inserting the following new subparagraphs:
‘‘(C) MANUFACTURING FACILITY.—For pur-
poses of this paragraph, the term ‘manufacturing
facility’ means any facility which is used in—
‘‘(i) the manufacture of tangible per-
sonal property (including processing which
results in a change in the condition of such
property),
‘‘(ii) the manufacture or development
of any software product or process if—
‘‘(I) it takes more than 6 months
to manufacture or develop such prod-
uct,
‘‘(II) the manufacture or develop-
ment could not with due diligence be
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reasonably expected to occur in less
than 6 months, and
‘‘(III) the software product or
process comprises programs, routines,
and attendant documentation devel-
oped and maintained for use in com-
puter and telecommunications tech-
nology, or
‘‘(iii) the manufacture or development
of any biobased product or bioenergy if—
‘‘(I) it takes more than 6 months
to manufacture or develop, and
‘‘(II) the manufacture or develop-
ment could not with due diligence be
reasonably expected to occur in less
than 6 months.
‘‘(D) RELATED FACILITIES.—For purposes
of subparagraph (C), the term ‘manufacturing
facility’ includes a facility which is directly and
functionally related to a manufacturing facility
(determined without regard to subparagraph
(C)) if—
‘‘(i) such facility, including an office
facility and a research and development fa-
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cility, is located on the same site as the
manufacturing facility, and
‘‘(ii) not more than 40 percent of the
net proceeds of the issue are used to provide
such facility.
‘‘(E) OTHER
DEFINITIONS.—For purposes
of subparagraph (C)(iii)—
‘‘(i) BIOBASED
PRODUCT.—The term
‘biobased product’ means a commercial or
industrial product (other than food or feed)
which utilizes biological products or renew-
able domestic agricultural (plant, animal,
and marine) or forestry materials.
‘‘(ii) 
BIOENERGY.—The 
term 
‘bio-
energy’ means biomass used in the produc-
tion of energy, including liquid, solid, or
gaseous fuels, electricity, and heat.’’.
(b) EFFECTIVE DATE.—The amendment made by this
section shall apply to obligations issued after the date of
the enactment of this Act.
SEC. 615. CONSERVATION BONDS.
(a) TAX-EXEMPT BOND FINANCING.—
(1) IN GENERAL.—For purposes of the Internal
Revenue Code of 1986, any qualified forest conserva-
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tion bond shall be treated as an exempt facility bond
under section 142 of such Code.
(2) QUALIFIED FOREST CONSERVATION BOND.—
For purposes of this section, the term ‘‘qualified forest
conservation 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 Code) of
such issue are to be used for qualified project
costs,
(B) such bond is issued for a qualified orga-
nization, and
(C) such bond is issued before December 31,
2006.
(3) 
LIMITATION
ON
AGGREGATE
AMOUNT
ISSUED.—
(A) IN GENERAL.—The maximum aggregate
face amount of bonds which may be issued under
this subsection shall not exceed $1,500,000,000
for all projects (excluding refunding bonds).
(B) ALLOCATION OF LIMITATION.—The lim-
itation described in subparagraph (A) shall be
allocated by the Secretary of the Treasury among
qualified organizations based on criteria estab-
lished by the Secretary not later than 180 days
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after the date of the enactment of this section,
after consultation with the Chief of the Forest
Service.
(4) QUALIFIED PROJECT COSTS.—For purposes
of this subsection, the term ‘‘qualified project costs’’
means the sum of—
(A) the cost of acquisition by the qualified
organization from an unrelated person of forests
and forest land which at the time of acquisition
or immediately thereafter are subject to a con-
servation restriction described in subsection
(c)(2),
(B) capitalized interest on the qualified for-
est conservation bonds for the 3-year period be-
ginning on the date of issuance of such bonds,
and
(C) credit enhancement fees which constitute
qualified guarantee fees (within the meaning of
section 148 of such Code).
(5) SPECIAL RULES.—In applying the Internal
Revenue Code of 1986 to any qualified forest con-
servation bond, the following modifications shall
apply:
(A) Section 146 of such Code (relating to
volume cap) shall not apply.
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(B) For purposes of section 147(b) of such
Code (relating to maturity may not exceed 120
percent of economic life), the land and standing
timber acquired with proceeds of qualified forest
conservation bonds shall have an economic life of
35 years.
(C) Subsections (c) and (d) of section 147
of such Code (relating to limitations on acquisi-
tion of land and existing property) shall not
apply.
(D) Section 57(a)(5) of such Code (relating
to tax-exempt interest) shall not apply to interest
on qualified forest conservation bonds.
(6) 
TREATMENT
OF
CURRENT
REFUNDING
BONDS.—Paragraphs (2)(C) and (3) shall not apply
to any bond (or series of bonds) issued to refund a
qualified forest conservation bond issued before De-
cember 31, 2006, if—
(A) the average maturity date of the issue
of which the refunding bond is a part is not later
than the average maturity date of the bonds to
be refunded by such issue,
(B) the amount of the refunding bond does
not exceed the outstanding amount of the re-
funded bond, and
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(C) the net proceeds of the refunding bond
are used to redeem the refunded bond not later
than 90 days after the date of the issuance of the
refunding bond.
For purposes of subparagraph (A), average maturity
shall be determined in accordance with section
147(b)(2)(A) of such Code.
(7) EFFECTIVE
DATE.—This subsection shall
apply to obligations issued on or after the date which
is 180 days after the enactment of this Act.
(b) ITEMS FROM QUALIFIED HARVESTING ACTIVITIES
NOT SUBJECT TO TAX OR TAKEN INTO ACCOUNT.—
(1) IN
GENERAL.—Income, gains, deductions,
losses, or credits from a qualified harvesting activity
conducted by a qualified organization shall not be
subject to tax or taken into account under subtitle A
of the Internal Revenue Code of 1986.
(2) LIMITATION.—The amount of income ex-
cluded from gross income under paragraph (1) for
any taxable year shall not exceed the amount used by
the qualified organization to make debt service pay-
ments during such taxable year for qualified forest
conservation bonds.
(3) QUALIFIED
HARVESTING
ACTIVITY.—For
purposes of paragraph (1)—
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(A) IN GENERAL.—The term ‘‘qualified har-
vesting activity’’ means the sale, lease, or har-
vesting, of standing timber—
(i) on land owned by a qualified orga-
nization which was acquired with proceeds
of qualified forest conservation bonds,
(ii) with respect to which a written ac-
knowledgement has been obtained by the
qualified organization from the State or
local governments with jurisdiction over
such land that the acquisition lessens the
burdens of such government with respect to
such land, and
(iii) pursuant to a qualified conserva-
tion plan adopted by the qualified organiza-
tion.
(B) EXCEPTIONS.—
(i) CESSATION AS QUALIFIED ORGANI-
ZATION.—The term ‘‘qualified harvesting
activity’’ shall not include any sale, lease,
or harvesting for any period during which
the organization ceases to qualify as a
qualified organization.
(ii) EXCEEDING
LIMITS
ON
HAR-
VESTING.—The term ‘‘qualified harvesting
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activity’’ shall not include any sale, lease,
or harvesting of standing timber on land
acquired with proceeds of qualified forest
conservation bonds to the extent that—
(I) the average annual area of
timber harvested from such land ex-
ceeds 2.5 percent of the total area of
such land or,
(II) the quantity of timber re-
moved from such land exceeds the
quantity which can be removed from
such land annually in perpetuity on a
sustained-yield basis with respect to
such land.
The limitations under subclauses (I) and
(II) shall not apply to post-fire restoration
and rehabilitation or sanitation harvesting
of timber stands which are substantially
damaged by fire, windthrow, or other catas-
trophes, or which are in imminent danger
from insect or disease attack.
(4) TERMINATION.—This subsection shall not
apply to any qualified harvesting activity of a quali-
fied organization occurring after the date on which
there is no outstanding qualified forest conservation
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bond with respect to such qualified organization or
any such bond ceases to be a tax-exempt bond.
(5) PARTIAL RECAPTURE OF BENEFITS IF HAR-
VESTING LIMIT EXCEEDED.—If, as of the date that
this subsection ceases to apply under paragraph (3),
the average annual area of timber harvested from the
land 
exceeds 
the 
requirement 
of 
paragraph
(3)(B)(ii)(I), the tax imposed by chapter 1 of the In-
ternal Revenue Code of 1986 shall be increased, under
rules prescribed by the Secretary of the Treasury, by
the sum of the tax benefits attributable to such excess
and interest at the underpayment rate under section
6621 of such Code for the period of the underpayment.
(c) DEFINITIONS.—For purposes of this section—
(1) QUALIFIED CONSERVATION PLAN.—The term
‘‘qualified conservation plan’’ means a multiple land
use program or plan which—
(A) is designed and administered primarily
for the purposes of protecting and enhancing
wildlife and fish, timber, scenic attributes, recre-
ation, and soil and water quality of the forest
and forest land,
(B) mandates that conservation of forest
and forest land is the single-most significant use
of the forest and forest land, and
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(C) requires that timber harvesting be con-
sistent with—
(i) restoring and maintaining reference
conditions for the region’s ecotype,
(ii) restoring and maintaining a rep-
resentative sample of young, mid, and late
successional forest age classes,
(iii) maintaining or restoring the re-
sources’ ecological health for purposes of
preventing damage from fire, insect, or dis-
ease,
(iv) maintaining or enhancing wildlife
or fish habitat, or
(v) enhancing research opportunities
in sustainable renewable resource uses.
(2) CONSERVATION RESTRICTION.—The conserva-
tion restriction described in this paragraph is a re-
striction which—
(A) is granted in perpetuity to an unrelated
person which is described in section 170(h)(3) of
such Code and which, in the case of a nongovern-
mental unit, is organized and operated for con-
servation purposes,
(B) meets the requirements of clause (ii) or
(iii)(II) of section 170(h)(4)(A) of such Code,
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(C) obligates the qualified organization to
pay the costs incurred by the holder of the con-
servation restriction in monitoring compliance
with such restriction, and
(D) requires an increasing level of conserva-
tion benefits to be provided whenever cir-
cumstances allow it.
(3) 
QUALIFIED
ORGANIZATION.—The 
term
‘‘qualified organization’’ means an organization—
(A) which is a nonprofit organization sub-
stantially all the activities of which are chari-
table, scientific, or educational, including ac-
quiring, protecting, restoring, managing, and de-
veloping forest lands and other renewable re-
sources for the long-term charitable, educational,
scientific and public benefit,
(B) more than half of the value of the prop-
erty of which consists of forests and forest land
acquired with the proceeds from qualified forest
conservation bonds,
(C) which periodically conducts educational
programs designed to inform the public of envi-
ronmentally sensitive forestry management and
conservation techniques,
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(D) which has at all times a board of
directors—
(i) at least 20 percent of the members
of which represent the holders of the con-
servation restriction described in paragraph
(2),
(ii) at least 20 percent of the members
of which are public officials, and
(iii) not more than one-third of the
members of which are individuals who are
or were at any time within 5 years before
the beginning of a term of membership on
the board, an employee of, independent con-
tractor with respect to, officer of, director of,
or held a material financial interest in, a
commercial forest products enterprise with
which the qualified organization has a con-
tractual or other financial arrangement,
(E) the bylaws of which require at least
two-thirds of the members of the board of direc-
tors to vote affirmatively to approve the qualified
conservation plan and any change thereto, and
(F) upon dissolution, is required to dedicate
its assets to—
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(i) an organization described in section
501(c)(3) of such Code which is organized
and operated for conservation purposes, or
(ii) a governmental unit described in
section 170(c)(1) of such Code.
(4) UNRELATED PERSON.—The term ‘‘unrelated
person’’ means a person who is not a related person.
(5) RELATED PERSON.—A person shall be treat-
ed as related to another person if—
(A) such person bears a relationship to such
other person described in section 267(b) (deter-
mined without regard to paragraph (9) thereof),
or 707(b)(1), of such Code, determined by sub-
stituting ‘‘25 percent’’ for ‘‘50 percent’’ each
place it appears therein, and
(B) in the case such other person is a non-
profit organization, if such person controls di-
rectly or indirectly more than 25 percent of the
governing body of such organization.
SEC. 616. INDIAN SCHOOL CONSTRUCTION.
(a) DEFINITIONS.—In this section:
(1) BUREAU.—The term ‘‘Bureau’’ means the
Bureau of Indian Affairs of the Department.
(2) DEPARTMENT.—The term ‘‘Department’’
means the Department of the Interior.
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(3) ESCROW ACCOUNT.—The term ‘‘escrow ac-
count’’ means the tribal school modernization escrow
account established under subsection (b)(6)(B)(i).
(4) INDIAN.—The term ‘‘Indian’’ means any in-
dividual who is a member of an Indian tribe.
(5) INDIAN TRIBE.—
(A) IN GENERAL.—The term ‘‘Indian tribe’’
has the meaning given the term ‘‘Indian tribal
government’’ by section 7701(a)(40) of the Inter-
nal Revenue Code of 1986 (including the appli-
cation of section 7871(d) of that Code).
(B) INCLUSION.—The term ‘‘Indian tribe’’
includes a consortium of Indian tribes approved
by the Secretary.
(6) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of the Interior.
(7) TRIBAL SCHOOL.—The term ‘‘tribal school’’
means an elementary school, secondary school, or dor-
mitory that—
(A) is operated by a tribal organization or
the Bureau for the education of Indian children;
and
(B) under a contract, a grant, or an agree-
ment, or for a Bureau-operated school, receives
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financial assistance to pay the costs of operation
from funds made available under—
(i) section 102, 103(a), or 208 of the
Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450f, 450h(a),
458d); or
(ii) the Tribally Controlled Schools Act
of 1988 (25 U.S.C. 2501 et seq.).
(b) ISSUANCE OF BONDS.—
(1) IN GENERAL.—The Secretary shall establish
a pilot program under which eligible Indian tribes
may issue qualified tribal school modernization bonds
to provide funding for the construction, rehabilita-
tion, or repair of tribal schools (including the advance
planning and design of tribal schools).
(2) ELIGIBILITY.—
(A) IN GENERAL.—To be eligible to issue
any qualified tribal school modernization bond
under the program under paragraph (1), an In-
dian tribe shall—
(i) prepare and submit to the Sec-
retary a plan of construction that meets the
requirements of subparagraph (B);
(ii) provide for quarterly and final in-
spection of the project by the Bureau; and
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(iii) pledge that the facilities financed
by the bond will be used primarily for ele-
mentary and secondary educational pur-
poses for not less than the period during
which the bond remains outstanding.
(B) PLAN OF CONSTRUCTION.—A plan of
construction referred to in subparagraph (A)(i)
meets the requirements of this subparagraph if
the plan—
(i) contains a description of the con-
struction to be carried out with funding
provided under a qualified tribal school
modernization bond;
(ii) demonstrates that a comprehensive
survey has been completed to determine the
construction needs of the tribal school in-
volved;
(iii) contains assurances that funding
under the bond will be used only for the ac-
tivities described in the plan;
(iv) contains a response to the evalua-
tion criteria contained in Instructions and
Application for Replacement School Con-
struction, Revision 6, dated February 6,
1999; and
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(v) contains any other reasonable and
related information determined to be appro-
priate by the Secretary.
(C) PRIORITY.—In determining whether an
Indian tribe is eligible to participate in the pro-
gram under this subsection, the Secretary shall
give priority to an Indian tribe that, as dem-
onstrated by the relevant plans of construction,
will fund projects—
(i) described in the Education Facili-
ties Replacement Construction Priorities
List, as of fiscal year 2000, of the Bureau
(65 Fed. Reg. 4623);
(ii) described in any subsequent prior-
ities list published in the Federal Register;
or
(iii) that meet the criteria for ranking
schools as described in Instructions and Ap-
plication for Replacement School Construc-
tion, Revision 6, dated February 6, 1999.
(D) ADVANCE PLANNING AND DESIGN FUND-
ING.—
(i) IN
GENERAL.—An Indian tribe
may propose in the plan of construction of
the Indian tribe to receive advance plan-
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ning and design funding from the escrow
account.
(ii) CONDITIONS
ON
ALLOCATION
OF
FUNDS.—As a condition to the allocation to
an Indian tribe of advance planning and
design funds from the escrow account under
clause (i), the Indian tribe shall agree—
(I) to issue qualified tribal school
modernization bonds after the date of
receipt of the funds; and
(II) as a condition of each bond
issuance, that the Indian tribe will de-
posit into the escrow account, or a
fund managed by the trustee as de-
scribed 
in 
paragraph 
(4)(C), 
an
amount equal to the amount of funds
received from the escrow account.
(3) PERMISSIBLE
ACTIVITIES.—In addition to
the use of funds permitted under paragraph (1), an
Indian tribe may use amounts received through the
issuance of a qualified tribal school modernization
bond—
(A) to enter into and make payments under
contracts with licensed and bonded architects,
engineers, and construction firms—
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(i) to determine the needs of the tribal
school; and
(ii) for the design and engineering of
the tribal school;
(B) enter into and make payments under
contracts with financial advisers, underwriters,
attorneys, trustees, and other professionals who
would be able to provide assistance to the Indian
tribe in issuing bonds; and
(C) carry out other activities determined to
be appropriate by the Secretary.
(4) BOND TRUSTEE.—
(A) IN
GENERAL.—Notwithstanding any
other provision of law, any qualified tribal
school modernization bond issued by an Indian
tribe under this subsection shall be subject to a
trust agreement between the Indian tribe and a
trustee.
(B) TRUSTEE.—Any bank or trust company
that meets requirements established by the Sec-
retary may be designated as a trustee under sub-
paragraph (A).
(C) CONTENT
OF
TRUST
AGREEMENT.—A
trust agreement entered into by an Indian tribe
under this paragraph shall specify that the trust-
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ee, with respect to any bond issued under this
subsection, shall—
(i) act as a repository for the proceeds
of the bond;
(ii) make payments to bondholders;
(iii) receive, as a condition to the
issuance of the bond, a transfer of funds
from the escrow account, or from other
funds furnished by or on behalf of the In-
dian tribe, in an amount that (including
interest earnings from the investment of the
funds in obligations of, or fully guaranteed
by, the United States, or from other invest-
ments authorized by paragraph (10)) will
produce funds sufficient to timely pay in
full the entire principal amount of the bond
on the stated maturity date of the bond;
(iv) invest the funds transferred under
clause (iii) in an investment described in
that clause; and
(v)(I) hold and invest the funds trans-
ferred under clause (iii) in a segregated
fund or account under the agreement; and
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(II) use the fund or account solely for
payment of the costs of items described in
paragraph (3).
(D) REQUIREMENTS
FOR
MAKING
DIRECT
PAYMENTS.—
(i) PAYMENTS.—
(I) 
IN
GENERAL.—Notwith-
standing any other provision of law,
the trustee shall make any payment re-
ferred to in subparagraph (C)(v) in ac-
cordance with such requirements as the
Indian tribe shall prescribe in the trust
agreement entered into under subpara-
graph (C).
(II) INSPECTION.—Before making
a payment for a project to a contractor
under subparagraph (C)(v), to ensure
completion of the project, the trustee
shall require an inspection of the
project by—
(aa) a local financial institu-
tion; or
(bb) an independent inspect-
ing architect or engineer.
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(ii) CONTRACTS.—Each contract re-
ferred to in paragraph (3) shall specify, or
be renegotiated to specify, that payments
under the contract shall be made in accord-
ance with this paragraph.
(5) PAYMENTS OF PRINCIPAL AND INTEREST.—
(A) PRINCIPAL.—
(i) IN GENERAL.—No principal pay-
ment on any qualified tribal school mod-
ernization bond shall be required under this
subsection until the final, stated date on
which the bond reaches maturity.
(ii) MATURITY; OUTSTANDING
PRIN-
CIPAL.—With respect to a qualified tribal
school modernization bond issued under this
subsection—
(I) the bond shall reach maturity
not later than 15 years after the date
of issuance of the bond; and
(II) on the date on which the bond
reaches 
maturity, 
the 
entire 
out-
standing principal under the bond
shall become due and payable.
(B) INTEREST.—There shall be awarded a
tax credit under section 1400M of the Internal
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Revenue Code of 1986 in lieu of interest on a
qualified tribal school modernization bond issued
under this subsection.
(6) BOND GUARANTEES.—
(A) IN
GENERAL.—Payment of the prin-
cipal portion of a qualified tribal school mod-
ernization bond issued under this subsection
shall be guaranteed solely by amounts deposited
with each respective bond trustee as described in
paragraph (4)(C)(iii).
(B) ESTABLISHMENT OF ACCOUNT.—
(i) 
IN
GENERAL.—Notwithstanding
any other provision of law, the Secretary
may—
(I) establish a tribal school mod-
ernization escrow account; and
(II) beginning in fiscal year 2005,
from amounts made available for
school replacement under the construc-
tion account of the Bureau, deposit not
more than $30,000,000 for each fiscal
year into the escrow account.
(ii) TRANSFERS
OF
EXCESS
PRO-
CEEDS.—Excess proceeds held under any
trust agreement that are not needed for any
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of the purposes described in clauses (iii)
and (v) of paragraph (4)(C) shall be trans-
ferred, from time to time, by the trustee for
deposit into the escrow account.
(iii) PAYMENTS.—The Secretary shall
use any amounts deposited in the escrow ac-
count under clauses (i) and (ii)—
(I) to make payments to trustees
appointed and acting in accordance
with paragraph (4); or
(II) to make payments described
in paragraph (2)(D).
(7) LIMITATIONS.—
(A) OBLIGATION TO REPAY.—
(i) 
IN
GENERAL.—Notwithstanding
any other provision of law, the principal
amount on any qualified tribal school mod-
ernization bond issued under this subsection
shall be repaid only to the extent of any
escrowed funds provided under paragraph
(4)(C)(iii).
(ii) NO
GUARANTEE.—No qualified
tribal school modernization bond issued by
an Indian tribe under this subsection shall
be an obligation of, and no payment of the
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principal of such a bond shall be guaran-
teed by—
(I) the United States;
(II) the Indian tribe; or
(III) the tribal school for which
the bond was issued.
(B) LAND AND FACILITIES.—No land or fa-
cility purchased or improved with amounts de-
rived from a qualified tribal school moderniza-
tion bond issued under this subsection shall be
mortgaged or used as collateral for the bond.
(8) SALE OF BONDS.—A qualified tribal school
modernization bond may be sold at a purchase price
equal to, in excess of, or at a discount from, the par
amount of the bond.
(9) TREATMENT OF TRUST AGREEMENT EARN-
INGS.—No amount earned through the investment of
funds under the control of a trustee under any trust
agreement described in paragraph (4) shall be subject
to Federal income taxation.
(10) INVESTMENT OF SINKING FUNDS.—A sink-
ing fund established for the purpose of the payment
of principal on a qualified tribal school moderniza-
tion bond issued under this subsection shall be in-
vested in—
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(A) obligations issued by or guaranteed by
the United States; or
(B) such other assets as the Secretary of the
Treasury may by regulation allow.
(c) 
EXPANSION
OF
INCENTIVES
FOR
TRIBAL
SCHOOLS.—Chapter 1 is amended by adding at the end the
following new subchapter:
‘‘Subchapter Z—Tribal School Modernization
Provisions
‘‘Sec. 1400M. Credit to holders of qualified tribal school modernization bonds.
‘‘SEC. 1400M. CREDIT TO HOLDERS OF QUALIFIED TRIBAL
SCHOOL MODERNIZATION BONDS.
‘‘(a) ALLOWANCE OF CREDIT.—In the case of a tax-
payer who holds a qualified tribal school modernization
bond on a credit allowance date of such bond which occurs
during the taxable year, there shall be allowed as a credit
against the tax imposed by this chapter for such taxable
year an amount equal to the sum of the credits determined
under subsection (b) with respect to credit allowance dates
during such year on which the taxpayer holds such bond.
‘‘(b) AMOUNT OF CREDIT.—
‘‘(1) IN GENERAL.—The amount of the credit de-
termined under this subsection with respect to any
credit allowance date for a qualified tribal school
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modernization bond is 25 percent of the annual credit
determined with respect to such bond.
‘‘(2) ANNUAL CREDIT.—The annual credit deter-
mined with respect to any qualified tribal school
modernization bond is the product of—
‘‘(A) the applicable credit rate, multiplied
by
‘‘(B) the outstanding face amount of the
bond.
‘‘(3) APPLICABLE CREDIT RATE.—For purposes
of paragraph (1), the applicable credit rate with re-
spect to an issue is the rate equal to an average mar-
ket yield (as of the date of sale of the issue) on out-
standing long-term corporate obligations (as deter-
mined by the Secretary).
‘‘(4) SPECIAL RULE FOR ISSUANCE AND REDEMP-
TION.—In the case of a bond which is issued during
the 3-month period ending on a credit allowance date,
the amount of the credit determined under this sub-
section with respect to such credit allowance date
shall be a ratable portion of the credit otherwise deter-
mined based on the portion of the 3-month period
during which the bond is outstanding. A similar rule
shall apply when the bond is redeemed.
‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.—
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‘‘(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
‘‘(B) the sum of the credits allowable under
part IV of subchapter A (other than subpart C
thereof, relating to refundable credits).
‘‘(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.
‘‘(d) QUALIFIED TRIBAL SCHOOL MODERNIZATION
BOND; OTHER
DEFINITIONS.—For purposes of this
section—
‘‘(1) QUALIFIED
TRIBAL
SCHOOL
MODERNIZA-
TION BOND.—
‘‘(A) IN
GENERAL.—The term ‘qualified
tribal school modernization bond’ means, subject
to subparagraph (B), any bond issued as part of
an issue under section 616(b) of the Jumpstart
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graph (11) as paragraph (12), and by inserting after
paragraph (10) the following:
‘‘(11) the rural investment credit determined
under section 42A, and’’.
(4) Section 774(b)(4) is amended by inserting ‘‘,
42A(i),’’ after ‘‘section 42(j)’’.
(e) CLERICAL AMENDMENT.—The table of sections for
subpart D of part IV of subchapter A of chapter 1 is amend-
ed by inserting after the item relating to section 42 the fol-
lowing:
‘‘Sec. 42A. Rural investment credit.’’.
(f) EFFECTIVE DATE.—The amendments made by this
section shall apply to expenditures made in taxable years
beginning after the date of the enactment of this Act.
SEC. 634. QUALIFIED RURAL SMALL BUSINESS INVESTMENT
CREDIT.
(a) IN GENERAL.—Subpart D of part IV of subchapter
A of chapter 1 (relating to business related credits), as
amended by this Act, is amended by adding at the end the
following:
‘‘SEC. 42B. QUALIFIED RURAL SMALL BUSINESS INVEST-
MENT CREDIT.
‘‘(a) IN GENERAL.—For purposes of section 38, in the
case of a qualified rural small business, the amount of the
qualified rural small business investment credit determined
under this section for any taxable year is equal to 30 per-
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HR 4520 EAS
cent of the qualified expenditures for the taxable year of
such business.
‘‘(b) DOLLAR LIMITATION.—
‘‘(1) IN GENERAL.—The credit allowable under
subsection (a) for any taxable year shall not exceed
the lesser of—
‘‘(A) $5,000, or
‘‘(B) the amount when added to the aggre-
gate credits allowable to the taxpayer under sub-
section (a) for all preceding taxable years does
not exceed $25,000.
‘‘(2) NO DOUBLE CREDIT ALLOWED.—In the case
of any qualified rural small business which places in
service a qualified rural investment building with re-
spect to which a rural investment credit is allowed
under section 42A for any taxable year, paragraph
(1)(A) shall be applied with respect to such taxable
year by substituting ‘zero’ for ‘$5,000’.
‘‘(c) QUALIFIED RURAL SMALL BUSINESS.—For pur-
poses of this section, the term ‘qualified rural small busi-
ness’ means any person if such person—
‘‘(1) employed not more than 5 full-time employ-
ees during the taxable year,
‘‘(2) materially and substantially participates in
management,
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other input on a proposed State rail plan under this chap-
ter to the following:
‘‘(1) The public.
‘‘(2) Rail carriers.
‘‘(3) Commuter and transit authorities operating
in, or affected by rail operations within, the State.
‘‘(4) Units of local government.
‘‘(5) Other parties interested in the preparation
and review of the State rail plan.
‘‘(b) INTERGOVERNMENTAL COORDINATION.—A State
shall review the freight and passenger rail service activities
and initiatives of regional planning agencies, regional
transportation authorities, and municipalities within the
State, or in the region in which the State is located, while
preparing the plan, and shall include any recommendations
made by such agencies, authorities, and municipalities as
deemed appropriate by the State.
‘‘§ 22504. Content
‘‘(a) IN GENERAL.—Each State rail plan shall contain
the following:
‘‘(1) An inventory of the existing overall rail
transportation system and rail services and facilities
within the State and an analysis of the role of rail
transportation within the State’s surface transpor-
tation system.
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‘‘(1) Section 302 of the Civil Rights Act of 1991
(2 U.S.C. 1202).
‘‘(2) Section 201, 202, 203, 204, 205, 206, or 207
of the Congressional Accountability Act of 1995 (2
U.S.C. 1311, 1312, 1313, 1314, 1315, 1316, or 1317).
‘‘(3) The National Labor Relations Act (29
U.S.C. 151 et seq.).
‘‘(4) The Fair Labor Standards Act of 1938 (29
U.S.C. 201 et seq.).
‘‘(5) Section 4 or 15 of the Age Discrimination
in Employment Act of 1967 (29 U.S.C. 623 or 633a).
‘‘(6) Section 501 or 504 of the Rehabilitation Act
of 1973 (29 U.S.C. 791 or 794).
‘‘(7) Section 510 of the Employee Retirement In-
come Security Act of 1974 (29 U.S.C. 1140).
‘‘(8) Title IX of the Education Amendments of
1972 (29 U.S.C. 1681 et seq.).
‘‘(9) The Employee Polygraph Protection Act of
1988 (29 U.S.C. 201 et seq.).
‘‘(10) The Worker Adjustment and Retraining
Notification Act (29 U.S.C. 2102 et seq.).
‘‘(11) Section 105 of the Family and Medical
Leave Act of 1993 (29 U.S.C. 2615).