104
(B) by substituting ‘‘May 5, 2007’’ for ‘‘Au-
gust 28, 2005’’ each place it appears, 
(C) by substituting ‘‘December 31, 2008’’ for 
‘‘December 31, 2007’’ in paragraph (2)(A)(v), 
(D) by substituting ‘‘December 31, 2009’’ 
for ‘‘December 31, 2008’’ in paragraph (2)(A)(v), 
(E) by substituting ‘‘May 4, 2007’’ for ‘‘Au-
gust 27, 2005’’ in paragraph (3)(A), 
(F) by substituting ‘‘January 1, 2009’’ for 
‘‘January 1, 2008’’ in paragraph (3)(B), and 
(G) determined without regard to para-
graph (6) thereof. 
(5) INCREASE
IN
EXPENSING
UNDER
SECTION 
179.—Section 1400N(e) of such Code, by substituting 
‘‘qualified section 179 Recovery Assistance property’’ 
for ‘‘qualified section 179 Gulf Opportunity Zone 
property’’ each place it appears. 
(6) EXPENSING FOR CERTAIN DEMOLITION AND 
CLEAN-UP COSTS.—Section 1400N(f) of such Code—
(A) by substituting ‘‘qualified Recovery As-
sistance clean-up cost’’ for ‘‘qualified Gulf Op-
portunity Zone clean-up cost’’ each place it ap-
pears, and 
(B) by substituting ‘‘beginning on May 4, 
2007, and ending on December 31, 2009’’ for
105
‘‘beginning on August 28, 2005, and ending on 
December 31, 2007’’ in paragraph (2) thereof. 
(7) TREATMENT OF PUBLIC UTILITY PROPERTY 
DISASTER LOSSES.—Section 1400N(o) of such Code. 
(8) TREATMENT OF NET OPERATING LOSSES AT-
TRIBUTABLE TO STORM LOSSES.—Section 1400N(k) of 
such Code—
(A) by substituting ‘‘qualified Recovery As-
sistance loss’’ for ‘‘qualified Gulf Opportunity 
Zone loss’’ each place it appears, 
(B) by substituting ‘‘after May 3, 2007, and 
before on January 1, 2010’’ for ‘‘after August 27, 
2005, and before January 1, 2008’’ each place it 
appears, 
(C) by substituting ‘‘May 4, 2007’’ for ‘‘Au-
gust 28, 2005’’ in paragraph (2)(B)(ii)(I) there-
of, 
(D) by substituting ‘‘qualified Recovery As-
sistance property’’ for ‘‘qualified Gulf Oppor-
tunity Zone property’’ in paragraph (2)(B)(iv) 
thereof, and 
(E) by substituting ‘‘qualified Recovery As-
sistance casualty loss’’ for ‘‘qualified Gulf Op-
portunity Zone casualty loss’’ each place it ap-
pears.
106
(9) TREATMENT OF REPRESENTATIONS REGARD-
ING INCOME ELIGIBILITY FOR PURPOSES OF QUALI-
FIED
RENTAL
PROJECT
REQUIREMENTS.—Section 
1400N(n) of such Code. 
(10) SPECIAL RULES FOR USE OF RETIREMENT 
FUNDS.—Section 1400Q of such Code—
(A) by substituting ‘‘qualified Recovery As-
sistance distribution’’ for ‘‘qualified hurricane 
distribution’’ each place it appears, 
(B) by substituting ‘‘on or after May 4, 
2007, and before January 1, 2009’’ for ‘‘on or 
after August 25, 2005, and before January 1, 
2007’’ in subsection (a)(4)(A)(i), 
(C) by substituting ‘‘qualified storm dis-
tribution’’ for ‘‘qualified Katrina distribution’’ 
each place it appears, 
(D) by substituting ‘‘after November 4, 
2006, and before May 5, 2007’’ for ‘‘after Feb-
ruary 28, 2005, and before August 29, 2005’’ in 
subsection (b)(2)(B)(ii), 
(E) by substituting ‘‘beginning on May 4, 
2007, and ending on November 5, 2007’’ for ‘‘be-
ginning on August 25, 2005, and ending on Feb-
ruary 28, 2006’’ in subsection (b)(3)(A),
107
(F) by substituting ‘‘qualified storm indi-
vidual’’ for ‘‘qualified Hurricane Katrina indi-
vidual’’ each place it appears, 
(G) by substituting ‘‘December 31, 2007’’ 
for ‘‘December 31, 2006’’ in subsection (c)(2)(A), 
(H) by substituting ‘‘beginning on June 4, 
2007, and ending on December 31, 2007’’ for 
‘‘beginning on September 24, 2005, and ending 
on 
December 
31, 
2006’’ 
in 
subsection 
(c)(4)(A)(i), 
(I) by substituting ‘‘May 4, 2007’’ for ‘‘Au-
gust 25, 2005’’ in subsection (c)(4)(A)(ii), and 
(J) by substituting ‘‘January 1, 2008’’ for 
‘‘January 1, 2007’’ in subsection (d)(2)(A)(ii). 
(b) EMERGENCY DESIGNATION.—For purposes of Sen-
ate enforcement, all provisions of this section are designated 
as emergency requirements and necessary to meet emer-
gency needs pursuant to section 204 of S. Con. Res. 21 
(110th Congress), the concurrent resolution on the budget 
for fiscal year 2008. 
TITLE VII—EMERGENCY 
DESIGNATION 
SEC. 701. EMERGENCY DESIGNATION. 
For purposes of Senate enforcement, all provisions of 
this Act are designated as emergency requirements and nec-
108
essary to meet emergency needs pursuant to section 204 of 
S. Con. Res. 21 (110th Congress), the concurrent resolution 
on the budget for fiscal year 2008. 
TITLE VIII—REIT INVESTMENT 
DIVERSIFICATION 
AND 
EM-
POWERMENT 
SEC. 801. SHORT TITLE; AMENDMENT OF 1986 CODE. 
(a) SHORT TITLE.—This title may be cited as the 
‘‘REIT Investment Diversification and Empowerment Act 
of 2008’’. 
(b) AMENDMENT OF 1986 CODE.—Except as otherwise 
expressly provided, whenever in this title an amendment 
or repeal is expressed in terms of an amendment to, or re-
peal of, a section or other provision, the reference shall be 
considered to be made to a section or other provision of the 
Internal Revenue Code of 1986. 
Subtitle A—Taxable REIT 
Subsidiaries 
SEC. 811. CONFORMING TAXABLE REIT SUBSIDIARY ASSET 
TEST. 
Section 856(c)(4)(B)(ii) is amended by striking ‘‘20 
percent’’ and inserting ‘‘25 percent’’.
112
or other similar service contract with the taxable 
REIT subsidiary to operate such qualified lodg-
ing facility or qualified health care property, 
such contractor (or any related person) is ac-
tively engaged in the trade or business of oper-
ating qualified lodging facilities or qualified 
health care properties, respectively, for any per-
son who is not a related person with respect to 
the real estate investment trust or the taxable 
REIT subsidiary. 
‘‘(B) SPECIAL RULES.—Solely for purposes 
of this paragraph and paragraph (8)(B), a per-
son shall not fail to be treated as an independent 
contractor with respect to any qualified lodging 
facility or qualified health care property (as so 
defined) by reason of the following: 
‘‘(i) The taxable REIT subsidiary 
bears the expenses for the operation of such 
qualified lodging facility or qualified health 
care property pursuant to the management 
agreement or other similar service contract. 
‘‘(ii) The taxable REIT subsidiary re-
ceives the revenues from the operation of 
such qualified lodging facility or qualified 
health care property, net of expenses for
113
such operation and fees payable to the oper-
ator pursuant to such agreement or con-
tract. 
‘‘(iii) The real estate investment trust 
receives income from such person with re-
spect to another property that is attrib-
utable to a lease of such other property to 
such person that was in effect as of the later 
of—
‘‘(I) January 1, 1999, or 
‘‘(II) the earliest date that any 
taxable REIT subsidiary of such trust 
entered into a management agreement 
or other similar service contract with 
such person with respect to such quali-
fied lodging facility or qualified health 
care property.’’. 
(c) TAXABLE REIT SUBSIDIARIES.—The last sentence 
of section 856(l)(3) is amended—
(1) by inserting ‘‘or a health care facility’’ after 
‘‘a lodging facility’’, and 
(2) by inserting ‘‘or health care facility’’ after 
‘‘such lodging facility’’.
114
Subtitle D—Effective Dates and 
Sunset 
SEC. 841 EFFECTIVE DATES AND SUNSET. 
(a) IN GENERAL.—Except as otherwise provided in 
this section, the amendments made by this title shall apply 
to taxable years beginning after the date of the enactment 
of this Act. 
(b) REIT INCOME TESTS.—
(1) The amendment made by section 801(a) and 
(b) shall apply to gains and items of income recog-
nized after the date of the enactment of this Act. 
(2) The amendment made by section 801(c) shall 
apply to transactions entered into after the date of the 
enactment of this Act. 
(3) The amendment made by section 801(d) shall 
apply after the date of the enactment of this Act. 
(c) CONFORMING FOREIGN CURRENCY REVISIONS.—
(1) The amendment made by section 803(a) shall 
apply to gains recognized after the date of the enact-
ment of this Act. 
(2) The amendment made by section 803(b) shall 
apply to gains and deductions recognized after the 
date of the enactment of this Act.
115
(d) DEALER SALES.—The amendments made by sub-
title C shall apply to sales made after the date of the enact-
ment of this Act. 
(e) SUNSET.—All amendments made by this title shall 
not apply to taxable years beginning after the date which 
is 5 years after the date of the enactment of this Act. The 
Internal Revenue Code of 1986 shall be applied and admin-
istered to taxable years described in the preceding sentence 
as if the amendments so described had never been enacted. 
TITLE IX—VETERANS HOUSING 
MATTERS 
SEC. 901. HOME IMPROVEMENTS AND STRUCTURAL ALTER-
ATIONS FOR TOTALLY DISABLED MEMBERS 
OF THE ARMED FORCES BEFORE DISCHARGE 
OR RELEASE FROM THE ARMED FORCES. 
Section 1717 of title 38, United States Code, is amend-
ed by adding at the end the following new subsection: 
‘‘(d)(1) In the case of a member of the Armed Forces 
who, as determined by the Secretary, has a disability per-
manent in nature incurred or aggravated in the line of duty 
in the active military, naval, or air service, the Secretary 
may furnish improvements and structural alterations for 
such member for such disability or as otherwise described 
in subsection (a)(2) while such member is hospitalized or 
receiving outpatient medical care, services, or treatment for