IIB 
111TH CONGRESS 
1ST SESSION H. R. 4213 
IN THE SENATE OF THE UNITED STATES 
DECEMBER 10, 2009 
Received; read twice and referred to the Committee on Finance 
AN ACT 
To amend the Internal Revenue Code of 1986 to extend 
certain expiring provisions, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; 
TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Tax Extenders Act of 2009’’. 
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; amendment of 1986 Code; table of contents. 
TITLE I—GENERAL PROVISIONS 
Subtitle A—Individual Tax Relief 
Sec. 101. Deduction of State and local sales taxes. 
Sec. 102. Additional standard deduction for State and local real property taxes. 
Sec. 103. Above-the-line deduction for qualified tuition and related expenses. 
Sec. 104. Deduction for certain expenses of elementary and secondary school 
teachers. 
Subtitle B—Business Tax Relief 
Sec. 111. Research credit. 
Sec. 112. Exceptions for active financing income. 
Sec. 113. Look-thru treatment of payments between related controlled foreign 
corporations under foreign personal holding company rules. 
Sec. 114. 15-year straight-line cost recovery for qualified leasehold improve-
ments, qualified restaurant buildings and improvements, and 
qualified retail improvements. 
Sec. 115. 7-year recovery period for motorsports entertainment complexes. 
Sec. 116. Railroad track maintenance credit. 
Sec. 117. Special expensing rules for certain film and television productions. 
Sec. 118. Expensing of environmental remediation costs. 
Sec. 119. Mine rescue team training credit. 
Sec. 120. Election to expense advanced mine safety equipment. 
Sec. 121. Employer wage credit for employees who are active duty members of 
the uniformed services. 
Sec. 122. 5-year depreciation for farming business machinery and equipment. 
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Sec. 123. Treatment of certain dividends and assets of regulated investment 
companies. 
Sec. 124. Look-thru of certain regulated investment company stock in deter-
mining gross estate of nonresidents. 
Sec. 125. RIC qualified investment entity treatment under FIRPTA. 
Sec. 126. Suspension of limitation on percentage depletion for oil and gas from 
marginal wells. 
Subtitle C—Charitable Provisions 
Sec. 131. Contributions of capital gain real property made for conservation pur-
poses. 
Sec. 132. Enhanced charitable deduction for contributions of food inventory. 
Sec. 133. Enhanced charitable deduction for contributions of book inventories 
to public schools. 
Sec. 134. Enhanced charitable deduction for corporate contributions of com-
puter technology and equipment for educational purposes. 
Sec. 135. Tax-free distributions from individual retirement plans for charitable 
purposes. 
Sec. 136. Modification of tax treatment of certain payments to controlling ex-
empt organizations. 
Sec. 137. Exclusion of gain or loss on sale or exchange of certain brownfield 
sites from unrelated business taxable income. 
Sec. 138. Basis adjustment to stock of S corporations making charitable con-
tributions of property. 
Subtitle D—Miscellaneous Provisions 
Sec. 141. Indian employment tax credit. 
Sec. 142. Accelerated depreciation for business property on an Indian reserva-
tion. 
Sec. 143. Deduction allowable with respect to income attributable to domestic 
production activities in Puerto Rico. 
Sec. 144. Temporary increase in limit on cover over of rum excise taxes to 
Puerto Rico and the Virgin Islands. 
Sec. 145. American Samoa economic development credit. 
TITLE II—COMMUNITY ASSISTANCE PROVISIONS 
Sec. 201. Empowerment zone tax incentives. 
Sec. 202. Renewal community tax incentives. 
Sec. 203. New markets tax credit. 
Sec. 204. Tax incentives for investment in the District of Columbia. 
Sec. 205. Tax incentives for New York Liberty Zone. 
Sec. 206. Tax incentives for the Gulf Opportunity Zone. 
Sec. 207. Election for refundable low-income housing credit for 2010. 
TITLE III—DISASTER RELIEF PROVISIONS 
Sec. 301. Deductibility of personal casualty losses attributable to federally de-
clared disasters. 
Sec. 302. Expensing of certain qualified disaster expenses. 
Sec. 303. 5-year carryback of net operating losses attributable to Federally de-
clared disasters. 
Sec. 304. Waiver of certain mortgage revenue bond requirements for residences 
located in Federally declared disaster areas. 
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Sec. 305. Expensing and special depreciation allowance for qualified disaster 
assistance property. 
TITLE IV—ENERGY PROVISIONS 
Sec. 401. Incentives for biodiesel and renewable diesel. 
Sec. 402. Alternative motor vehicle credit for heavy hybrids. 
Sec. 403. Alternative fuel credit for natural gas and liquified petroleum gas. 
Sec. 404. Special rule for sales or dispositions to implement FERC or State 
electric restructuring policy for qualified electric utilities. 
TITLE V—FOREIGN ACCOUNT TAX COMPLIANCE 
Subtitle A—Increased Disclosure of Beneficial Owners 
Sec. 501. Reporting on certain foreign accounts. 
Sec. 502. Repeal of certain foreign exceptions to registered bond requirements. 
Subtitle B—Under Reporting With Respect to Foreign Assets 
Sec. 511. Disclosure of information with respect to foreign financial assets. 
Sec. 512. Penalties for underpayments attributable to undisclosed foreign fi-
nancial assets. 
Sec. 513. Modification of statute of limitations for significant omission of in-
come in connection with foreign assets. 
Subtitle C—Other Disclosure Provisions 
Sec. 521. Reporting of activities with respect to passive foreign investment com-
panies. 
Sec. 522. Secretary permitted to require financial institutions to file certain re-
turns related to withholding on foreign transfers electronically. 
Subtitle D—Provisions Related to Foreign Trusts 
Sec. 531. Clarifications with respect to foreign trusts which are treated as hav-
ing a United States beneficiary. 
Sec. 532. Presumption that foreign trust has United States beneficiary. 
Sec. 533. Uncompensated use of trust property. 
Sec. 534. Reporting requirement of United States owners of foreign trusts. 
Sec. 535. Minimum penalty with respect to failure to report on certain foreign 
trusts. 
Subtitle E—Substitute Dividends and Dividend Equivalent Payments Received 
by Foreign Persons Treated as Dividends 
Sec. 541. Substitute dividends and dividend equivalent payments received by 
foreign persons treated as dividends. 
TITLE VI—OTHER REVENUE PROVISIONS 
Subtitle A—Partnership Interests Held by Partners Providing Services 
Sec. 601. Partnership interests transferred in connection with performance of 
services. 
Sec. 602. Income of partners for performing investment management services 
treated as ordinary income received for performance of serv-
ices. 
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Subtitle B—Time for Payment of Corporate Estimated Taxes 
Sec. 611. Time for payment of corporate estimated taxes. 
Subtitle C—Tax Expenditure Study 
Sec. 621. Findings. 
Sec. 622. Study of extended tax expenditures. 
TITLE I—GENERAL PROVISIONS 
Subtitle A—Individual Tax Relief 
SEC. 101. DEDUCTION OF STATE AND LOCAL SALES TAXES. 
(a) IN
GENERAL.—Subparagraph (I) of section 
164(b)(5) is amended by striking ‘‘January 1, 2010’’ and 
inserting ‘‘January 1, 2011’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
SEC. 102. ADDITIONAL STANDARD DEDUCTION FOR STATE 
AND LOCAL REAL PROPERTY TAXES. 
(a) IN GENERAL.—Subparagraph (C) of section 
63(c)(1) is amended by striking ‘‘or 2009’’ and inserting 
‘‘, 2009, or 2010’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
SEC. 103. ABOVE-THE-LINE DEDUCTION FOR QUALIFIED 
TUITION AND RELATED EXPENSES. 
(a) IN GENERAL.—Subsection (e) of section 222 is 
amended by striking ‘‘December 31, 2009’’ and inserting 
‘‘December 31, 2010’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
SEC. 104. DEDUCTION FOR CERTAIN EXPENSES OF ELE-
MENTARY AND SECONDARY SCHOOL TEACH-
ERS. 
(a) IN GENERAL.—Subparagraph (D) of section 
62(a)(2) is amended by striking ‘‘or 2009’’ and inserting 
‘‘2009, or 2010’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
Subtitle B—Business Tax Relief 
SEC. 111. RESEARCH CREDIT. 
(a) IN GENERAL.—Subparagraph (B) of section 
41(h)(1) is amended by striking ‘‘December 31, 2009’’ 
and inserting ‘‘December 31, 2010’’. 
(b) CONFORMING AMENDMENT.—Subparagraph (D) 
of section 45C(b)(1) is amended by striking ‘‘December 
31, 2009’’ and inserting ‘‘December 31, 2010’’. 
(c) EFFECTIVE DATE.—The amendment made by 
this section shall apply to amounts paid or incurred after 
December 31, 2009. 
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SEC. 112. EXCEPTIONS FOR ACTIVE FINANCING INCOME. 
(a) 
IN
GENERAL.—Sections 
953(e)(10) 
and 
954(h)(9) are each amended by striking ‘‘January 1, 
2010’’ and inserting ‘‘January 1, 2011’’. 
(b) CONFORMING AMENDMENT.—Section 953(e)(10) 
is amended by striking ‘‘December 31, 2009’’ and insert-
ing ‘‘December 31, 2010’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years of foreign corpora-
tions beginning after December 31, 2009, and to taxable 
years of United States shareholders with or within which 
any such taxable year of such foreign corporation ends. 
SEC. 113. LOOK-THRU TREATMENT OF PAYMENTS BE-
TWEEN 
RELATED 
CONTROLLED 
FOREIGN 
CORPORATIONS UNDER FOREIGN PERSONAL 
HOLDING COMPANY RULES. 
(a) IN GENERAL.—Subparagraph (C) of section 
954(c)(6) is amended by striking ‘‘January 1, 2010’’ and 
inserting ‘‘January 1, 2011’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years of foreign corpora-
tions beginning after December 31, 2009, and to taxable 
years of United States shareholders with or within which 
any such taxable year of such foreign corporation ends. 
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SEC. 114. 15-YEAR STRAIGHT-LINE COST RECOVERY FOR 
QUALIFIED 
LEASEHOLD 
IMPROVEMENTS, 
QUALIFIED RESTAURANT BUILDINGS AND IM-
PROVEMENTS, AND QUALIFIED RETAIL IM-
PROVEMENTS. 
(a) IN GENERAL.—Clauses (iv), (v), and (ix) of sec-
tion 168(e)(3)(E) are each amended by striking ‘‘January 
1, 2010’’ and inserting ‘‘January 1, 2011’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2009. 
SEC. 115. 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS 
ENTERTAINMENT COMPLEXES. 
(a) IN GENERAL.—Subparagraph (D) of section 
168(i)(15) is amended by striking ‘‘December 31, 2009’’ 
and inserting ‘‘December 31, 2010’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to property placed in service after 
December 31, 2009. 
SEC. 116. RAILROAD TRACK MAINTENANCE CREDIT. 
(a) IN GENERAL.—Subsection (f) of section 45G is 
amended by striking ‘‘January 1, 2010’’ and inserting 
‘‘January 1, 2011’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to expenditures paid or incurred 
in taxable years beginning after December 31, 2009. 
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SEC. 137. EXCLUSION OF GAIN OR LOSS ON SALE OR EX-
CHANGE OF CERTAIN BROWNFIELD SITES 
FROM UNRELATED BUSINESS TAXABLE IN-
COME. 
(a) IN GENERAL.—Subparagraph (K) of section 
512(b)(19) is amended by striking ‘‘December 31, 2009’’ 
and inserting ‘‘December 31, 2010’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to property acquired after Decem-
ber 31, 2009. 
SEC. 138. BASIS ADJUSTMENT TO STOCK OF S CORPORA-
TIONS 
MAKING 
CHARITABLE 
CONTRIBU-
TIONS OF PROPERTY. 
(a) IN GENERAL.—Paragraph (2) of section 1367(a) 
is amended by striking ‘‘December 31, 2009’’ and insert-
ing ‘‘December 31, 2010’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to contributions made in taxable 
years beginning after December 31, 2009. 
Subtitle D—Miscellaneous 
Provisions 
SEC. 141. INDIAN EMPLOYMENT TAX CREDIT. 
(a) IN GENERAL.—Subsection (f) of section 45A is 
amended by striking ‘‘December 31, 2009’’ and inserting 
‘‘December 31, 2010’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
SEC. 142. ACCELERATED DEPRECIATION FOR BUSINESS 
PROPERTY ON AN INDIAN RESERVATION. 
(a) IN GENERAL.—Paragraph (8) of section 168(j) 
is amended by striking ‘‘December 31, 2009’’ and insert-
ing ‘‘December 31, 2010’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to property placed in service after 
December 31, 2009. 
SEC. 143. DEDUCTION ALLOWABLE WITH RESPECT TO IN-
COME ATTRIBUTABLE TO DOMESTIC PRO-
DUCTION ACTIVITIES IN PUERTO RICO. 
(a) IN GENERAL.—Subparagraph (C) of section 
199(d)(8) is amended— 
(1) by striking ‘‘first 4 taxable years’’ and in-
serting ‘‘first 5 taxable years’’, and 
(2) by striking ‘‘January 1, 2010’’ and insert-
ing ‘‘January 1, 2011’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
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SEC. 144. TEMPORARY INCREASE IN LIMIT ON COVER OVER 
OF RUM EXCISE TAXES TO PUERTO RICO AND 
THE VIRGIN ISLANDS. 
(a) IN GENERAL.—Paragraph (1) of section 7652(f) 
is amended by striking ‘‘January 1, 2010’’ and inserting 
‘‘January 1, 2011’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to distilled spirits brought into the 
United States after December 31, 2009. 
SEC. 145. AMERICAN SAMOA ECONOMIC DEVELOPMENT 
CREDIT. 
(a) IN GENERAL.—Subsection (d) of section 119 of 
division A of the Tax Relief and Health Care Act of 2006 
is amended— 
(1) by striking ‘‘first 4 taxable years’’ and in-
serting ‘‘first 5 taxable years’’, and 
(2) by striking ‘‘January 1, 2010’’ and insert-
ing ‘‘January 1, 2011’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
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TITLE II—COMMUNITY 
ASSISTANCE PROVISIONS 
SEC. 201. EMPOWERMENT ZONE TAX INCENTIVES. 
(a) 
IN
GENERAL.—Clause 
(i) 
of 
section 
1391(d)(1)(A) is amended by striking ‘‘December 31, 
2009’’ and inserting ‘‘December 31, 2010’’. 
(b) INCREASED EXCLUSION OF GAIN ON STOCK OF 
EMPOWERMENT ZONE BUSINESSES.—Subparagraph (C) 
of section 1202(a)(2) is amended— 
(1) by striking ‘‘December 31, 2014’’ and in-
serting ‘‘December 31, 2015’’, and 
(2) by striking ‘‘2014’’ in the heading and in-
serting ‘‘2015’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to periods after December 31, 
2009. 
SEC. 202. RENEWAL COMMUNITY TAX INCENTIVES. 
(a) IN GENERAL.—Subsection (b) of section 1400E 
is amended— 
(1) by striking ‘‘December 31, 2009’’ in para-
graphs (1)(A) and (3) and inserting ‘‘December 31, 
2010’’, and 
(2) by striking ‘‘January 1, 2010’’ in paragraph 
(3) and inserting ‘‘January 1, 2011’’. 
(b) ZERO-PERCENT CAPITAL GAINS RATE.— 
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(1) 
ACQUISITION
DATES.—Paragraphs 
(2)(A)(i), (3)(A), (4)(A)(i), and (4)(B)(i) of section 
1400F(b) are each amended by striking ‘‘January 1, 
2010’’ and inserting ‘‘January 1, 2011’’. 
(2) LIMITATION ON PERIOD OF GAINS.—Para-
graph (2) of section 1400F(c) is amended— 
(A) by striking ‘‘December 31, 2014’’ and 
inserting ‘‘December 31, 2015’’, and 
(B) by striking ‘‘2014’’ in the heading and 
inserting ‘‘2015’’. 
(3) CLERICAL AMENDMENT.—Subsection (d) of 
section 1400F is amended by striking ‘‘and ‘Decem-
ber 31, 2014’ for ‘December 31, 2014’ ’’. 
(c) COMMERCIAL REVITALIZATION DEDUCTION.— 
Subsection (g) of section 1400I is amended by striking 
‘‘December 31, 2009’’ and inserting ‘‘December 31, 
2010’’. 
(d) INCREASED EXPENSING UNDER SECTION 179.— 
Subparagraph (A) of section 1400J(b)(1) is amended by 
striking ‘‘January 1, 2010’’ and inserting ‘‘January 1, 
2011’’. 
(e) EFFECTIVE DATES.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the amendments made by 
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this section shall apply to periods after December 
31, 2009. 
(2) ACQUISITIONS.—The amendments made by 
subsection (b)(1) and (d) shall apply to acquisitions 
after December 31, 2009. 
(3) 
COMMERCIAL
REVITALIZATION
DEDUC-
TION.—The amendment made by subsection (c) shall 
apply to building placed in service after December 
31, 2009. 
SEC. 203. NEW MARKETS TAX CREDIT. 
(a) IN GENERAL.—Subparagraph (F) of section 
45D(f)(1) is amended by inserting ‘‘and 2010’’ after 
‘‘2009’’. 
(b) CARRYOVER
OF UNUSED LIMITATION.—Para-
graph (3) of section 45D(f) is amended by striking 
‘‘2014’’ and inserting ‘‘2015’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to calendar years beginning after 
2009. 
SEC. 204. TAX INCENTIVES FOR INVESTMENT IN THE DIS-
TRICT OF COLUMBIA. 
(a) IN GENERAL.—Subsection (f) of section 1400 is 
amended by striking ‘‘December 31, 2009’’ each place it 
appears and inserting ‘‘December 31, 2010’’. 
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(b) 
TAX-EXEMPT
DC 
EMPOWERMENT
ZONE 
BONDS.—Subsection (b) of section 1400A is amended by 
striking ‘‘December 31, 2009’’ and inserting ‘‘December 
31, 2010’’. 
(c) ZERO-PERCENT CAPITAL GAINS RATE.— 
(1) 
ACQUISITION
DATES.—Paragraphs 
(2)(A)(i), (3)(A), (4)(A)(i), and (4)(B)(i)(I) of sec-
tion 1400B(b) are each amended by striking ‘‘Janu-
ary 1, 2010’’ and inserting ‘‘January 1, 2011’’. 
(2) LIMITATION ON PERIOD OF ZERO-PERCENT 
CAPITAL GAINS.— 
(A) IN GENERAL.—Paragraph (2) of sec-
tion 1400B(e) is amended— 
(i) by striking ‘‘December 31, 2014’’ 
and inserting ‘‘December 31, 2015’’, and 
(ii) by striking ‘‘2014’’ in the heading 
and inserting ‘‘2015’’. 
(B) INTERESTS IN PARTNERSHIP AND S 
CORPORATIONS.—Paragraph 
(2) 
of 
section 
1400B(g) is amended by striking ‘‘December 
31, 2014’’ and inserting ‘‘December 31, 2015’’. 
(d) FIRST-TIME HOMEBUYER CREDIT.—Subsection 
(i) of section 1400C is amended by striking ‘‘January 1, 
2010’’ and inserting ‘‘January 1, 2011’’. 
(e) EFFECTIVE DATES.— 
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(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the amendments made by 
this section shall apply to periods after December 
31, 2009. 
(2) TAX-EXEMPT
DC
EMPOWERMENT
ZONE 
BONDS.—The amendment made by subsection (b) 
shall apply to bonds issued after December 31, 
2009. 
(3) ACQUISITION
DATES
FOR
ZERO-PERCENT 
CAPITAL GAINS RATE.—The amendments made by 
subsection (c)(1) shall apply to property acquired or 
substantially improved after December 31, 2009. 
(4) FIRST-TIME
HOMEBUYER
CREDIT.—The 
amendment made by subsection (d) shall apply to 
property purchased after December 31, 2009. 
SEC. 205. TAX INCENTIVES FOR NEW YORK LIBERTY ZONE. 
(a) BONUS DEPRECIATION
FOR NONRESIDENTIAL 
REAL PROPERTY
AND RESIDENTIAL RENTAL PROP-
ERTY.—Subparagraph (A) of section 1400L(b)(2) is 
amended by striking ‘‘December 31, 2009’’ in the last sen-
tence and inserting ‘‘December 31, 2010’’. 
(b) TAX-EXEMPT BOND FINANCING.—Subparagraph 
(D) of section 1400L(d)(2) is amended by striking ‘‘Janu-
ary 1, 2010’’ and inserting ‘‘January 1, 2011’’. 
(c) EFFECTIVE DATES.— 
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SEC. 207. ELECTION FOR REFUNDABLE LOW-INCOME HOUS-
ING CREDIT FOR 2010. 
(a) IN GENERAL.—Section 42 is amended by redesig-
nating subsection (n) as subsection (o) and by inserting 
after subsection (m) the following new subsection: 
‘‘(n) ELECTION FOR REFUNDABLE CREDITS.— 
‘‘(1) IN GENERAL.—The housing credit agency 
of each State shall be allowed a credit in an amount 
equal to such State’s 2010 low-income housing re-
fundable credit election amount which shall be pay-
able by the Secretary as provided in paragraph (5). 
‘‘(2) 2010 LOW-INCOME HOUSING REFUNDABLE 
CREDIT ELECTION AMOUNT.—For purposes of this 
subsection, the term ‘2010 low-income housing re-
fundable credit election amount’ means, with respect 
to any State, such amount as the State may elect 
which does not exceed 85 percent of the product 
of— 
‘‘(A) the sum of— 
‘‘(i) 100 percent of the State housing 
credit ceiling for 2010 which is attrib-
utable to amounts described in clauses (i) 
and (iii) of subsection (h)(3)(C), and 
‘‘(ii) 40 percent of the State housing 
credit ceiling for 2010 which is attrib-
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utable to amounts described in clauses (ii) 
and (iv) of such subsection, multiplied by 
‘‘(B) 10. 
‘‘(3) COORDINATION
WITH
NON-REFUNDABLE 
CREDIT.—For purposes of this section, the amounts 
described in clauses (i) through (iv) of subsection 
(h)(3)(C) with respect to any State for 2010 shall 
each be reduced by so much of such amount as is 
taken into account in determining the amount of the 
credit allowed with respect to such State under para-
graph (1). 
‘‘(4) SPECIAL
RULE
FOR
BASIS.—Basis of a 
qualified low-income building shall not be reduced by 
the amount of any payment made under this sub-
section. 
‘‘(5) PAYMENT OF CREDIT; USE TO FINANCE 
LOW-INCOME BUILDINGS.—The Secretary shall pay 
to the housing credit agency of each State an 
amount equal to the credit allowed under paragraph 
(1). Rules similar to the rules of subsections (c) and 
(d) of section 1602 of the American Recovery and 
Reinvestment Tax Act of 2009 shall apply with re-
spect to any payment made under this paragraph, 
except that such subsection (d) shall be applied by 
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substituting ‘January 1, 2012’ for ‘January 1, 
2011’.’’. 
(b) CONFORMING AMENDMENT.—Section 1324(b)(2) 
of title 31, United States Code, is amended by inserting 
‘‘42(n),’’ after ‘‘36A,’’. 
TITLE III—DISASTER RELIEF 
PROVISIONS 
SEC. 301. DEDUCTIBILITY OF PERSONAL CASUALTY LOSSES 
ATTRIBUTABLE TO FEDERALLY DECLARED 
DISASTERS. 
(a) 
IN
GENERAL.—Subclause 
(I) 
of 
section 
165(h)(3)(B)(i) is amended by striking ‘‘January 1, 
2010’’ and inserting ‘‘January 1, 2011’’. 
(b) EXTENSION OF $500 LIMITATION.—Paragraph 
(1) of section 165(h) is amended by striking ‘‘December 
31, 2009’’ and inserting ‘‘December 31, 2010’’. 
(c) EFFECTIVE DATE.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the amendments made by 
this section shall apply to losses attributable to dis-
asters occurring after December 31, 2009. 
(2) EXTENSION
OF
$500
LIMITATION.—The 
amendment made by subsection (b) shall apply to 
taxable years beginning after December 31, 2009. 
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SEC. 302. EXPENSING OF CERTAIN QUALIFIED DISASTER 
EXPENSES. 
(a) IN GENERAL.—Subparagraph (A) of section 
198A(b)(2) is amended by striking ‘‘January 1, 2010’’ 
and inserting ‘‘January 1, 2011’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to expenditures on account of dis-
asters occurring after December 31, 2009. 
SEC. 303. 5-YEAR CARRYBACK OF NET OPERATING LOSSES 
ATTRIBUTABLE TO FEDERALLY DECLARED 
DISASTERS. 
(a) 
IN
GENERAL.—Subclause 
(I) 
of 
section 
172(j)(1)(A)(i) is amended by striking ‘‘January 1, 2010’’ 
and inserting ‘‘January 1, 2011’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to losses attributable to disasters 
occurring after December 31, 2009. 
SEC. 304. WAIVER OF CERTAIN MORTGAGE REVENUE BOND 
REQUIREMENTS FOR RESIDENCES LOCATED 
IN FEDERALLY DECLARED DISASTER AREAS. 
(a) IN GENERAL.—Paragraph (11) of section 143(k) 
is amended by striking ‘‘January 1, 2010’’ and inserting 
‘‘January 1, 2011’’. 
(b) SPECIAL RULE FOR RESIDENCES DESTROYED IN 
FEDERALLY DECLARED DISASTER AREAS.—Paragraph 
(13) of section 143(k), as redesignated under subsection 
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(c), is amended by striking ‘‘January 1, 2010’’ in subpara-
graphs (A)(i) and (B)(i) and inserting ‘‘January 1, 2011’’. 
(c) TECHNICAL AMENDMENT.—Subsection (k) of sec-
tion 143 is amended by redesignating the second para-
graph (12) (relating to special rules for residences de-
stroyed in Federally declared disasters) as paragraph 
(13). 
(d) EFFECTIVE DATES.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the amendments made by 
this section shall apply to bonds issued after Decem-
ber 31, 2009. 
(2) RESIDENCES
DESTROYED
IN
FEDERALLY 
DECLARED
DISASTER
AREAS.—The amendments 
made by subsection (b) shall apply with respect to 
disasters occurring after December 31, 2009. 
(3) TECHNICAL AMENDMENT.—The amendment 
made by subsection (c) shall take effect as if in-
cluded in section 709 of the Tax Extenders and Al-
ternative Minimum Tax Relief Act of 2008. 
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SEC. 305. EXPENSING AND SPECIAL DEPRECIATION ALLOW-
ANCE FOR QUALIFIED DISASTER ASSISTANCE 
PROPERTY. 
(a) 
IN
GENERAL.—Subclause 
(I) 
of 
section 
168(n)(2)(A)(ii) is amended by striking ‘‘January 1, 
2010’’ and inserting ‘‘January 1, 2011’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to disasters occurring after Decem-
ber 31, 2009. 
TITLE IV—ENERGY PROVISIONS 
SEC. 401. INCENTIVES FOR BIODIESEL AND RENEWABLE 
DIESEL. 
(a) CREDITS FOR BIODIESEL AND RENEWABLE DIE-
SEL USED AS FUEL.—Subsection (g) of section 40A is 
amended by striking ‘‘December 31, 2009’’ and inserting 
‘‘December 31, 2010’’. 
(b) EXCISE TAX CREDITS AND PAYMENTS FOR BIO-
DIESEL AND RENEWABLE DIESEL FUEL MIXTURES.— 
(1) Paragraph (6) of section 6426(c) is amend-
ed by striking ‘‘December 31, 2009’’ and inserting 
‘‘December 31, 2010’’. 
(2) Subparagraph (B) of section 6427(e)(6) is 
amended by striking ‘‘December 31, 2009’’ and in-
serting ‘‘December 31, 2010’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to sales and uses after December 
31, 2009. 
SEC. 402. ALTERNATIVE MOTOR VEHICLE CREDIT FOR 
HEAVY HYBRIDS. 
(a) IN GENERAL.—Paragraph (3) of section 30B(k) 
is amended by striking ‘‘December 31, 2009’’ and insert-
ing ‘‘December 31, 2010’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to property purchased after De-
cember 31, 2009. 
SEC. 403. ALTERNATIVE FUEL CREDIT FOR NATURAL GAS 
AND LIQUIFIED PETROLEUM GAS. 
(a) IN GENERAL.—Paragraph (5) of section 6426(d) 
is amended by striking ‘‘after December 31, 2009’’ and 
all that follows and inserting ‘‘after— 
‘‘(A) September 30, 2014, in the case of 
liquefied hydrogen, 
‘‘(B) December 31, 2010, in the case of— 
‘‘(i) compressed or liquified natural 
gas, and 
‘‘(ii) liquified petroleum gas (other 
than for use as fuel in a forklift), and 
‘‘(C) December 31, 2009, in any other 
case.’’. 
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(b) PAYMENT AUTHORITY.—Paragraph (6) of section 
6427(e) is amended by striking ‘‘and’’ at the end of sub-
paragraph (C), by striking the period at the end of sub-
paragraph (D) and inserting a comma and by adding at 
the end the following new subparagraphs: 
‘‘(E) any alternative fuel (as so defined) 
involving compressed or liquified natural gas 
sold or used after December 31, 2010, and 
‘‘(F) any alternative fuel (as so defined) 
involving liquified petroleum gas (other than for 
use as fuel in a forklift) sold or used after De-
cember 31, 2010.’’. 
(c) CONFORMING AMENDMENT.—Subparagraph (C) 
of section 6427(e)(6) is amended by inserting ‘‘(E), or 
(F)’’ after ‘‘subparagraph (D)’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to fuel sold or used after December 
31, 2009. 
SEC. 404. SPECIAL RULE FOR SALES OR DISPOSITIONS TO 
IMPLEMENT FERC OR STATE ELECTRIC RE-
STRUCTURING POLICY FOR QUALIFIED ELEC-
TRIC UTILITIES. 
(a) IN GENERAL.—Paragraph (3) of section 451(i) 
is amended by striking ‘‘January 1, 2010’’ and inserting 
‘‘January 1, 2011’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to dispositions after December 31, 
2009. 
TITLE V—FOREIGN ACCOUNT 
TAX COMPLIANCE 
Subtitle A—Increased Disclosure of 
Beneficial Owners 
SEC. 501. REPORTING ON CERTAIN FOREIGN ACCOUNTS. 
(a) IN GENERAL.—The Internal Revenue Code of 
1986 is amended by inserting after chapter 3 the following 
new chapter: 
‘‘CHAPTER 4—TAXES TO ENFORCE RE-
PORTING ON CERTAIN FOREIGN AC-
COUNTS 
‘‘Sec. 1471. Withholdable payments to foreign financial institutions. 
‘‘Sec. 1472. Withholdable payments to other foreign entities. 
‘‘Sec. 1473. Definitions. 
‘‘Sec. 1474. Special rules. 
‘‘SEC. 1471. WITHHOLDABLE PAYMENTS TO FOREIGN FI-
NANCIAL INSTITUTIONS. 
‘‘(a) IN GENERAL.—In the case of any withholdable 
payment to a foreign financial institution which does not 
meet the requirements of subsection (b), the withholding 
agent with respect to such payment shall deduct and with-
hold from such payment a tax equal to 30 percent of the 
amount of such payment. 
‘‘(b) REPORTING REQUIREMENTS, ETC.— 
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‘‘(1) IN GENERAL.—The requirements of this 
subsection are met with respect to any foreign finan-
cial institution if an agreement is in effect between 
such institution and the Secretary under which such 
institution agrees— 
‘‘(A) to obtain such information regarding 
each holder of each account maintained by such 
institution as is necessary to determine which 
(if any) of such accounts are United States ac-
counts, 
‘‘(B) to comply with such verification and 
due diligence procedures as the Secretary may 
require with respect to the identification of 
United States accounts, 
‘‘(C) in the case of any United States ac-
count maintained by such institution, to report 
on an annual basis the information described in 
subsection (c) with respect to such account, 
‘‘(D) to deduct and withhold a tax equal to 
30 percent of— 
‘‘(i) any passthru payment which is 
made by such institution to a recalcitrant 
account holder or another foreign financial 
institution which does not meet the re-
quirements of this subsection, and 
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‘‘(ii) in the case of any passthru pay-
ment which is made by such institution to 
a foreign financial institution which has in 
effect an election under paragraph (3) with 
respect to such payment, so much of such 
payment as is allocable to accounts held by 
recalcitrant account holders or foreign fi-
nancial institutions which do not meet the 
requirements of this subsection, 
‘‘(E) to comply with requests by the Sec-
retary for additional information with respect to 
any United States account maintained by such 
institution, and 
‘‘(F) in any case in which any foreign law 
would (but for a waiver described in clause (i)) 
prevent the reporting of any information re-
ferred to in this subsection or subsection (c) 
with respect to any United States account 
maintained by such institution— 
‘‘(i) to attempt to obtain a valid and 
effective waiver of such law from each 
holder of such account, and 
‘‘(ii) if a waiver described in clause (i) 
is not obtained from each such holder 
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within a reasonable period of time, to close 
such account. 
Any agreement entered into under this subsection 
may be terminated by the Secretary upon a deter-
mination by the Secretary that the foreign financial 
institution is out of compliance with such agreement. 
‘‘(2) FINANCIAL
INSTITUTIONS
DEEMED
TO 
MEET REQUIREMENTS IN CERTAIN CASES.—A for-
eign financial institution may be treated by the Sec-
retary as meeting the requirements of this sub-
section if— 
‘‘(A) such institution— 
‘‘(i) complies with such procedures as 
the Secretary may prescribe to ensure that 
such institution does not maintain United 
States accounts, and 
‘‘(ii) meets such other requirements as 
the Secretary may prescribe with respect 
to accounts of other foreign financial insti-
tutions maintained by such institution, or 
‘‘(B) such institution is a member of a 
class of institutions with respect to which the 
Secretary has determined that the application 
of this section is not necessary to carry out the 
purposes of this section. 
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‘‘(3) ELECTION TO BE WITHHELD UPON RATH-
ER
THAN
WITHHOLD
ON
PAYMENTS
TO
RECAL-
CITRANT
ACCOUNT
HOLDERS
AND
NONPARTICI-
PATING FOREIGN FINANCIAL INSTITUTIONS.—In the 
case of a foreign financial institution which meets 
the requirements of this subsection and such other 
requirements as the Secretary may provide and 
which elects the application of this paragraph— 
‘‘(A) the requirements of paragraph (1)(D) 
shall not apply, 
‘‘(B) the withholding tax imposed under 
subsection (a) shall apply with respect to any 
withholdable payment to such institution to the 
extent such payment is allocable to accounts 
held by recalcitrant account holders or foreign 
financial institutions which do not meet the re-
quirements of this subsection, and 
‘‘(C) the agreement described in paragraph 
(1) shall— 
‘‘(i) require such institution to notify 
the withholding agent with respect to each 
such payment of the institution’s election 
under this paragraph and such other infor-
mation as may be necessary for the with-
holding agent to determine the appropriate 
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amount to deduct and withhold from such 
payment, and 
‘‘(ii) include a waiver of any right 
under any treaty of the United States with 
respect to any amount deducted and with-
held pursuant to an election under this 
paragraph. 
To the extent provided by the Secretary, the election 
under this paragraph may be made with respect to 
certain classes or types of accounts of the foreign fi-
nancial institution. 
‘‘(c) INFORMATION REQUIRED TO BE REPORTED ON 
UNITED STATES ACCOUNTS.— 
‘‘(1) IN GENERAL.—The agreement described in 
subsection (b) shall require the foreign financial in-
stitution to report the following with respect to each 
United States account maintained by such institu-
tion: 
‘‘(A) The name, address, and TIN of each 
account holder which is a specified United 
States person and, in the case of any account 
holder which is a United States owned foreign 
entity, the name, address, and TIN of each sub-
stantial United States owner of such entity. 
‘‘(B) The account number. 
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‘‘(C) The account balance or value (deter-
mined at such time and in such manner as the 
Secretary may provide). 
‘‘(D) The gross receipts and gross with-
drawals or payments from the account (deter-
mined for such period and in such manner as 
the Secretary may provide). 
‘‘(2) ELECTION TO BE SUBJECT TO SAME RE-
PORTING AS UNITED STATES FINANCIAL INSTITU-
TIONS.—In the case of a foreign financial institution 
which elects the application of this paragraph— 
‘‘(A) subparagraphs (C) and (D) of para-
graph (1) shall not apply, and 
‘‘(B) the agreement described in subsection 
(b) shall require such foreign financial institu-
tion to report such information with respect to 
each United States account maintained by such 
institution as such institution would be required 
to report under sections 6041, 6042, 6045, and 
6049 if— 
‘‘(i) such institution were a United 
States person, and 
‘‘(ii) each holder of such account 
which is a specified United States person 
or United States owned foreign entity were 
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a natural person and citizen of the United 
States. 
An election under this paragraph shall be made 
at such time, in such manner, and subject to 
such conditions as the Secretary may provide. 
‘‘(3) SEPARATE
REQUIREMENTS
FOR
QUALI-
FIED INTERMEDIARIES.—In the case of a foreign fi-
nancial institution which is treated as a qualified 
intermediary by the Secretary for purposes of sec-
tion 1441 and the regulations issued thereunder, the 
requirements of this section shall be in addition to 
any reporting or other requirements imposed by the 
Secretary for purposes of such treatment. 
‘‘(d) DEFINITIONS.—For purposes of this section— 
‘‘(1) UNITED STATES ACCOUNT.— 
‘‘(A) IN
GENERAL.—The term ‘United 
States account’ means any financial account 
which is held by one or more specified United 
States persons or United States owned foreign 
entities. 
‘‘(B) EXCEPTION FOR CERTAIN ACCOUNTS 
HELD BY INDIVIDUALS.—Unless the foreign fi-
nancial institution elects to not have this sub-
paragraph apply, such term shall not include 
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any depository account maintained by such fi-
nancial institution if— 
‘‘(i) each holder of such account is a 
natural person, and 
‘‘(ii) with respect to each holder of 
such account, the aggregate value of all de-
pository accounts held (in whole or in part) 
by such holder and maintained by the 
same financial institution which maintains 
such account does not exceed $50,000. 
To the extent provided by the Secretary, finan-
cial institutions which are members of the same 
expanded affiliated group shall be treated for 
purposes of clause (ii) as a single financial in-
stitution. 
‘‘(C) ELIMINATION
OF
DUPLICATIVE
RE-
PORTING REQUIREMENTS.—Such term shall not 
include any financial account in a foreign finan-
cial institution if— 
‘‘(i) such account is held by another 
financial institution which meets the re-
quirements of subsection (b), or 
‘‘(ii) the holder of such account is oth-
erwise subject to information reporting re-
quirements which the Secretary determines 
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would make the reporting required by this 
section with respect to United States ac-
counts duplicative. 
‘‘(2) FINANCIAL ACCOUNT.—The term ‘finan-
cial account’ means, with respect to any financial in-
stitution— 
‘‘(A) any depository account maintained by 
such financial institution, 
‘‘(B) any custodial account maintained by 
such financial institution, and 
‘‘(C) except as otherwise provided by the 
Secretary, any equity or debt interest in such 
financial institution (other than interests which 
are regularly traded on an established securities 
market). 
Any equity or debt interest which constitutes a fi-
nancial account under subparagraph (C) with re-
spect to any financial institution shall be treated for 
purposes of this section as maintained by such fi-
nancial institution. 
‘‘(3) UNITED STATES OWNED FOREIGN ENTI-
TY.—The term ‘United States owned foreign entity’ 
means any foreign entity which has one or more sub-
stantial United States owners. 
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‘‘(4) FOREIGN FINANCIAL INSTITUTION.—The 
term ‘foreign financial institution’ means any finan-
cial institution which is a foreign entity. Except as 
otherwise provided by the Secretary, such term shall 
not include a financial institution which is organized 
under the laws of any possession of the United 
States. 
‘‘(5) FINANCIAL INSTITUTION.—Except as oth-
erwise provided by the Secretary, the term ‘financial 
institution’ means any entity that— 
‘‘(A) accepts deposits in the ordinary 
course of a banking or similar business, 
‘‘(B) is engaged in the business of holding 
financial assets for the account of others, or 
‘‘(C) is engaged (or holding itself out as 
being engaged) primarily in the business of in-
vesting, reinvesting, or trading in securities (as 
defined in section 475(c)(2) without regard to 
the last sentence thereof), partnership interests, 
commodities (as defined in section 475(e)(2)), 
or any interest (including a futures or forward 
contract or option) in such securities, partner-
ship interests, or commodities. 
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‘‘(6) RECALCITRANT ACCOUNT HOLDER.—The 
term ‘recalcitrant account holder’ means any ac-
count holder which— 
‘‘(A) fails to comply with reasonable re-
quests for the information referred to in sub-
section (b)(1)(A) or (c)(1)(A), or 
‘‘(B) fails to provide a waiver described in 
subsection (b)(1)(F) upon request. 
‘‘(7) PASSTHRU PAYMENT.—The term ‘passthru 
payment’ means any withholdable payment or other 
payment which is attributable to a withholdable pay-
ment. 
‘‘(e) AFFILIATED GROUPS.— 
‘‘(1) IN GENERAL.—The requirements of sub-
sections (b) and (c)(1) shall apply— 
‘‘(A) with respect to United States ac-
counts maintained by the foreign financial insti-
tution, and 
‘‘(B) except as otherwise provided by the 
Secretary, with respect to United States ac-
counts maintained by each other foreign finan-
cial institution (other than any foreign financial 
institution which meets the requirements of 
subsection (b)) which is a member of the same 
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expanded affiliated group as such foreign finan-
cial institution. 
‘‘(2) EXPANDED AFFILIATED GROUP.—For pur-
poses of this section, the term ‘expanded affiliated 
group’ means an affiliated group as defined in sec-
tion 1504(a), determined— 
‘‘(A) by substituting ‘more than 50 per-
cent’ for ‘at least 80 percent’ each place it ap-
pears, and 
‘‘(B) without regard to paragraphs (2) and 
(3) of section 1504(b). 
A partnership or any other entity (other than a cor-
poration) shall be treated as a member of an ex-
panded affiliated group if such entity is controlled 
(within the meaning of section 954(d)(3)) by mem-
bers of such group (including any entity treated as 
a member of such group by reason of this sentence). 
‘‘(f) EXCEPTION
FOR CERTAIN PAYMENTS.—Sub-
section (a) shall not apply to any payment if the beneficial 
owner of such payment is— 
‘‘(1) any foreign government, any political sub-
division of a foreign government, or any wholly 
owned agency or instrumentality of any one or more 
of the foregoing, 
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‘‘(2) any international organization or any 
wholly owned agency or instrumentality thereof, 
‘‘(3) any foreign central bank of issue, or 
‘‘(4) any other class of persons identified by the 
Secretary for purposes of this subsection as posing 
a low risk of tax evasion. 
‘‘SEC. 1472. WITHHOLDABLE PAYMENTS TO OTHER FOR-
EIGN ENTITIES. 
‘‘(a) IN GENERAL.—In the case of any withholdable 
payment to a non-financial foreign entity, if— 
‘‘(1) the beneficial owner of such payment is 
such entity or any other non-financial foreign entity, 
and 
‘‘(2) the requirements of subsection (b) are not 
met with respect to such beneficial owner, 
then the withholding agent with respect to such payment 
shall deduct and withhold from such payment a tax equal 
to 30 percent of the amount of such payment. 
‘‘(b) REQUIREMENTS
FOR
WAIVER
OF
WITH-
HOLDING.—The requirements of this subsection are met 
with respect to the beneficial owner of a payment if— 
‘‘(1) such beneficial owner or the payee provides 
the withholding agent with either— 
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‘‘(A) a certification that such beneficial 
owner does not have any substantial United 
States owners, or 
‘‘(B) the name, address, and TIN of each 
substantial United States owner of such bene-
ficial owner, 
‘‘(2) the withholding agent does not know, or 
have reason to know, that any information provided 
under paragraph (1) is incorrect, and 
‘‘(3) the withholding agent reports the informa-
tion provided under paragraph (1)(B) to the Sec-
retary in such manner as the Secretary may provide. 
‘‘(c) EXCEPTIONS.—Subsection (a) shall not apply 
to— 
‘‘(1) except as otherwise provided by the Sec-
retary, any payment beneficially owned by— 
‘‘(A) any corporation the stock of which is 
regularly traded on an established securities 
market, 
‘‘(B) any corporation which is a member of 
the same expanded affiliated group (as defined 
in section 1471(e)(2) without regard to the last 
sentence thereof) as a corporation described in 
subparagraph (A), 
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‘‘(C) any entity which is organized under 
the laws of a possession of the United States 
and which is wholly owned by one or more bona 
fide residents (as defined in section 937(a)) of 
such possession, 
‘‘(D) any foreign government, any political 
subdivision of a foreign government, or any 
wholly owned agency or instrumentality of any 
one or more of the foregoing, 
‘‘(E) any international organization or any 
wholly owned agency or instrumentality thereof, 
‘‘(F) any foreign central bank of issue, or 
‘‘(G) any other class of persons identified 
by the Secretary for purposes of this subsection, 
and 
‘‘(2) any class of payments identified by the 
Secretary for purposes of this subsection as posing 
a low risk of tax evasion. 
‘‘(d) NON-FINANCIAL FOREIGN ENTITY.—For pur-
poses of this section, the term ‘non-financial foreign enti-
ty’ means any foreign entity which is not a financial insti-
tution (as defined in section 1471(d)(5)). 
‘‘SEC. 1473. DEFINITIONS. 
‘‘For purposes of this chapter— 
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‘‘(1) WITHHOLDABLE
PAYMENT.—Except as 
otherwise provided by the Secretary— 
‘‘(A) 
IN
GENERAL.—The 
term 
‘withholdable payment’ means— 
‘‘(i) any payment of interest (includ-
ing any original issue discount), dividends, 
rents, salaries, wages, premiums, annuities, 
compensations, 
remunerations, 
emolu-
ments, and other fixed or determinable an-
nual or periodical gains, profits, and in-
come, if such payment is from sources 
within the United States, and 
‘‘(ii) any gross proceeds from the sale 
or other disposition of any property of a 
type which can produce interest or divi-
dends from sources within the United 
States. 
‘‘(B) EXCEPTION FOR INCOME CONNECTED 
WITH UNITED STATES BUSINESS.—Such term 
shall not include any item of income which is 
taken into account under section 871(b)(1) or 
882(a)(1) for the taxable year. 
‘‘(C) SPECIAL RULE FOR SOURCING INTER-
EST PAID BY FOREIGN BRANCHES OF DOMESTIC 
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FINANCIAL
INSTITUTIONS.—Subparagraph (B) 
of section 861(a)(1) shall not apply. 
‘‘(2) SUBSTANTIAL UNITED STATES OWNER.— 
‘‘(A) IN GENERAL.—The term ‘substantial 
United States owner’ means— 
‘‘(i) with respect to any corporation, 
any specified United States person which 
owns, directly or indirectly, more than 10 
percent of the stock of such corporation 
(by vote or value), 
‘‘(ii) with respect to any partnership, 
any specified United States person which 
owns, directly or indirectly, more than 10 
percent of the profits interests or capital 
interests in such partnership, and 
‘‘(iii) in the case of a trust— 
‘‘(I) any specified United States 
person treated as an owner of any 
portion of such trust under subpart E 
of part I of subchapter J of chapter 
1, and 
‘‘(II) to the extent provided by 
the Secretary in regulations or other 
guidance, any specified United States 
person which holds, directly or indi-
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rectly, more than 10 percent of the 
beneficial interests of such trust. 
‘‘(B) SPECIAL RULE FOR INVESTMENT VE-
HICLES.—In the case of any financial institu-
tion described in section 1471(d)(5)(C), clauses 
(i), (ii), and (iii) of subparagraph (A) shall be 
applied by substituting ‘0 percent’ for ‘10 per-
cent’. 
‘‘(3) SPECIFIED UNITED STATES PERSON.—Ex-
cept as otherwise provided by the Secretary, the 
term ‘specified United States person’ means any 
United States person other than— 
‘‘(A) any corporation the stock of which is 
regularly traded on an established securities 
market, 
‘‘(B) any corporation which is a member of 
the same expanded affiliated group (as defined 
in section 1471(e)(2) without regard to the last 
sentence thereof) as a corporation the stock of 
which is regularly traded on an established se-
curities market, 
‘‘(C) any organization exempt from tax-
ation under section 501(a) or an individual re-
tirement plan, 
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‘‘(D) the United States or any wholly 
owned agency or instrumentality thereof, 
‘‘(E) any State, the District of Columbia, 
any possession of the United States, any polit-
ical subdivision of any of the foregoing, or any 
wholly owned agency or instrumentality of any 
one or more of the foregoing, 
‘‘(F) any bank (as defined in section 581), 
‘‘(G) any real estate investment trust (as 
defined in section 856), 
‘‘(H) any regulated investment company 
(as defined in section 851), 
‘‘(I) any common trust fund (as defined in 
section 584(a)), and 
‘‘(J) any trust which— 
‘‘(i) is exempt from tax under section 
664(c), or 
‘‘(ii) 
is 
described 
in 
section 
4947(a)(1). 
‘‘(4) WITHHOLDING AGENT.—The term ‘with-
holding agent’ means all persons, in whatever capac-
ity acting, having the control, receipt, custody, dis-
posal, or payment of any withholdable payment. 
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‘‘(5) FOREIGN ENTITY.—The term ‘foreign en-
tity’ means any entity which is not a United States 
person. 
‘‘SEC. 1474. SPECIAL RULES. 
‘‘(a) LIABILITY FOR WITHHELD TAX.—Every person 
required to deduct and withhold any tax under this chap-
ter is hereby made liable for such tax and is hereby indem-
nified against the claims and demands of any person for 
the amount of any payments made in accordance with the 
provisions of this chapter. 
‘‘(b) CREDITS AND REFUNDS.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the determination of whether any tax de-
ducted and withheld under this chapter results in an 
overpayment by the beneficial owner of the payment 
to which such tax is attributable shall be made as 
if such tax had been deducted and withheld under 
subchapter A of chapter 3. 
‘‘(2) SPECIAL RULE WHERE FOREIGN FINAN-
CIAL INSTITUTION IS BENEFICIAL OWNER OF PAY-
MENT.— 
‘‘(A) IN GENERAL.—In the case of any tax 
properly deducted and withheld under section 
1471 from a specified financial institution pay-
ment— 
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‘‘(i) if the foreign financial institution 
referred to in subparagraph (B) with re-
spect to such payment is entitled to a re-
duced rate of tax with respect to such pay-
ment by reason of any treaty obligation of 
the United States— 
‘‘(I) the amount of any credit or 
refund with respect to such tax shall 
not exceed the amount of credit or re-
fund attributable to such reduction in 
rate, and 
‘‘(II) no interest shall be allowed 
or paid with respect to such credit or 
refund, and 
‘‘(ii) if such foreign financial institu-
tion is not so entitled, no credit or refund 
shall be allowed or paid with respect to 
such tax. 
‘‘(B) SPECIFIED FINANCIAL INSTITUTION 
PAYMENT.—The term ‘specified financial insti-
tution payment’ means any payment if the ben-
eficial owner of such payment is a foreign fi-
nancial institution. 
‘‘(3) REQUIREMENT TO IDENTIFY SUBSTANTIAL 
UNITED STATES OWNERS.—No credit or refund shall 
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be allowed or paid with respect to any tax properly 
deducted and withheld under this chapter unless the 
beneficial owner of the payment provides the Sec-
retary such information as the Secretary may re-
quire to determine whether such beneficial owner is 
a United States owned foreign entity (as defined in 
section 1471(d)(3)) and the identity of any substan-
tial United States owners of such entity. 
‘‘(c) CONFIDENTIALITY OF INFORMATION.— 
‘‘(1) IN GENERAL.—For purposes of this chap-
ter, rules similar to the rules of section 3406(f) shall 
apply. 
‘‘(2) DISCLOSURE OF LIST OF PARTICIPATING 
FOREIGN
FINANCIAL
INSTITUTIONS
PERMITTED.— 
The identity of a foreign financial institution which 
meets the requirements of section 1471(b) shall not 
be treated as return information for purposes of sec-
tion 6103. 
‘‘(d) COORDINATION WITH OTHER WITHHOLDING 
PROVISIONS.—The Secretary shall provide for the coordi-
nation of this chapter with other withholding provisions 
under this title, including providing for the proper cred-
iting of amounts deducted and withheld under this chapter 
against amounts required to be deducted and withheld 
under such other provisions. 
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‘‘(e) TREATMENT OF WITHHOLDING UNDER AGREE-
MENTS.—Any tax deducted and withheld pursuant to an 
agreement described in section 1471(b) shall be treated 
for purposes of this title as a tax deducted and withheld 
by a withholding agent under section 1471(a). 
‘‘(f) REGULATIONS.—The Secretary shall prescribe 
such regulations or other guidance as may be necessary 
or appropriate to carry out the purposes of this chapter.’’. 
(b) SPECIAL RULE
FOR INTEREST
ON OVERPAY-
MENTS.—Subsection (e) of section 6611 is amended by 
adding at the end the following new paragraph: 
‘‘(4) CERTAIN WITHHOLDING TAXES.—In the 
case of any overpayment resulting from tax deducted 
and withheld under chapter 3 or 4, paragraphs (1), 
(2), and (3) shall be applied by substituting ‘180 
days’ for ‘45 days’ each place it appears.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 6414 is amended by inserting ‘‘or 
4’’ after ‘‘chapter 3’’. 
(2) Paragraph (1) of section 6501(b) is amend-
ed by inserting ‘‘4,’’ after ‘‘chapter 3,’’. 
(3) Paragraph (2) of section 6501(b) is amend-
ed— 
(A) by inserting ‘‘4,’’ after ‘‘chapter 3,’’ in 
the text thereof, and 
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(B) by striking ‘‘TAXES AND TAX IMPOSED 
BY CHAPTER 3’’ in the heading thereof and in-
serting ‘‘AND WITHHOLDING TAXES’’. 
(4) Paragraph (3) of section 6513(b) is amend-
ed— 
(A) by inserting ‘‘or 4’’ after ‘‘chapter 3’’, 
and 
(B) by inserting ‘‘or 1474(b)’’ after ‘‘sec-
tion 1462’’. 
(5) Subsection (c) of section 6513 is amended 
by inserting ‘‘4,’’ after ‘‘chapter 3,’’. 
(6) Paragraph (1) of section 6724(d) is amend-
ed by inserting ‘‘under chapter 4 or’’ after ‘‘filed 
with the Secretary’’ in the last sentence thereof. 
(7) Paragraph (2) of section 6724(d) is amend-
ed by inserting ‘‘or 4’’ after ‘‘chapter 3’’. 
(8) The table of chapters of the Internal Rev-
enue Code of 1986 is amended by adding at the end 
the following new item: 
‘‘CHAPTER 4. TAXES TO ENFORCE REPORTING ON CERTAIN FOREIGN 
ACCOUNTS.’’. 
(d) EFFECTIVE DATE.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the amendments made by 
this section shall apply to payments made after De-
cember 31, 2012. 
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(2) GRANDFATHERED
TREATMENT
OF
OUT-
STANDING
OBLIGATIONS.—The amendments made 
by this section shall not require any amount to be 
deducted or withheld from any payment under any 
obligation outstanding on the date which is 2 years 
after the date of the enactment of this Act. 
(3) 
INTEREST
ON
OVERPAYMENTS.—The 
amendment made by subsection (b) shall apply— 
(A) in the case of such amendment’s appli-
cation to paragraph (1) of section 6611(e) of 
the Internal Revenue Code of 1986, to returns 
the due date for which (determined without re-
gard to extensions) is after the date of the en-
actment of this Act, 
(B) in the case of such amendment’s appli-
cation to paragraph (2) of such section, to 
claims for credit or refund of any overpayment 
filed after the date of the enactment of this Act 
(regardless of the taxable period to which such 
refund relates), and 
(C) in the case of such amendment’s appli-
cation to paragraph (3) of such section, to re-
funds paid after the date of the enactment of 
this Act (regardless of the taxable period to 
which such refund relates). 
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