I 
111TH CONGRESS 
1ST SESSION H. R. 2920 
To reinstitute and update the Pay-As-You-Go requirement of budget neu-
trality on new tax and mandatory spending legislation, enforced by the 
threat of annual, automatic sequestration. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 17, 2009 
Mr. HOYER (for himself, Mr. GEORGE MILLER of California, Mr. HILL, Mr. 
WELCH, Mr. SPRATT, Mr. ALTMIRE, Mr. ANDREWS, Mr. ARCURI, Mr. 
BACA, Mr. BAIRD, Mr. BARROW, Ms. BEAN, Mr. BERRY, Mr. BISHOP of 
Georgia, Mr. BISHOP of New York, Mr. BLUMENAUER, Mr. BOCCIERI, 
Mr. BOREN, Mr. BOSWELL, Mr. BOYD, Mr. BRADY of Pennsylvania, Mr. 
BRALEY of Iowa, Mr. BRIGHT, Mr. BUTTERFIELD, Mrs. CAPPS, Mr. 
CARDOZA, Mr. CARNAHAN, Mr. CARNEY, Ms. CASTOR of Florida, Mr. 
CHANDLER, Mr. CHILDERS, Mr. CLYBURN, Mr. CONNOLLY of Virginia, 
Mr. COOPER, Mr. COSTA, Mr. COURTNEY, Mr. CROWLEY, Mr. CUELLAR, 
Mrs. DAHLKEMPER, Mr. DAVIS of Alabama, Mr. DAVIS of Tennessee, 
Mrs. DAVIS of California, Ms. DEGETTE, Ms. DELAURO, Mr. DONNELLY 
of Indiana, Mr. DRIEHAUS, Mr. EDWARDS of Texas, Mr. ELLSWORTH, 
Ms. ESHOO, Mr. ETHERIDGE, Mr. FATTAH, Mr. FOSTER, Ms. FUDGE, 
Ms. GIFFORDS, Mr. GONZALEZ, Mr. GORDON of Tennessee, Mr. GENE 
GREEN of Texas, Mr. GRIFFITH, Mr. GUTIERREZ, Mrs. HALVORSON, Mr. 
HARE, Ms. HARMAN, Mr. HASTINGS of Florida, Mr. HEINRICH, Ms. 
HERSETH
SANDLIN, Mr. HIGGINS, Mr. HIMES, Mr. HODES, Mr. 
HOLDEN, Mr. INSLEE, Mr. JOHNSON of Georgia, Mr. KAGEN, Mr. KAN-
JORSKI, Ms. KILROY, Mrs. KIRKPATRICK of Arizona, Mr. KISSELL, Mr. 
KLEIN of Florida, Ms. KOSMAS, Mr. KRATOVIL, Mr. LANGEVIN, Mr. 
LARSEN of Washington, Mr. LARSON of Connecticut, Mr. LIPINSKI, Mr. 
LOEBSACK, Mr. LUJA´N, Mr. LYNCH, Mr. MAFFEI, Mrs. MALONEY, Ms. 
MARKEY of Colorado, Mr. MARSHALL, Mr. MASSA, Mr. MATHESON, Ms. 
MATSUI, Ms. MCCOLLUM, Mr. MCGOVERN, Mr. MCINTYRE, Mr. 
MCMAHON, Mr. MCNERNEY, Mr. MELANCON, Mr. MINNICK, Mr. MOORE 
of Kansas, Mr. MORAN of Virginia, Mr. PATRICK J. MURPHY of Pennsyl-
vania, Mr. MURPHY of New York, Mr. NYE, Mr. PASCRELL, Ms. PELOSI, 
Mr. PERLMUTTER, Mr. PERRIELLO, Mr. PETERS, Mr. PETERSON, Mr. 
PIERLUISI, Mr. POMEROY, Mr. PRICE of North Carolina, Mr. QUIGLEY, 
Mr. REYES, Mr. RODRIGUEZ, Mr. ROSS, Mr. RUPPERSBERGER, Mr. 
RYAN of Ohio, Mr. SABLAN, Mr. SALAZAR, Ms. LINDA T. SA´NCHEZ of 
California, Ms. LORETTA SANCHEZ of California, Mr. SARBANES, Mr. 
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SCHAUER, Mr. SCHIFF, Mr. SCHRADER, Ms. SCHWARTZ, Mr. SCOTT of 
Georgia, Mr. SCOTT of Virginia, Mr. SESTAK, Ms. SHEA-PORTER, Mr. 
SHERMAN, Mr. SHULER, Mr. SIRES, Mr. SKELTON, Ms. SLAUGHTER, Mr. 
SMITH of Washington, Mr. SPACE, Ms. SPEIER, Mr. STUPAK, Mr. TAN-
NER, Mrs. TAUSCHER, Mr. TEAGUE, Mr. THOMPSON of California, Ms. 
TITUS, Ms. TSONGAS, Mr. VAN HOLLEN, Mr. WALZ, Ms. WASSERMAN 
SCHULTZ, Mr. WAXMAN, Mr. WEXLER, Mr. WILSON of Ohio, Mr. WU, 
Mr. TONKO, and Mr. VISCLOSKY) introduced the following bill; which was 
referred to the Committee on the Budget 
A BILL 
To reinstitute and update the Pay-As-You-Go requirement 
of budget neutrality on new tax and mandatory spending 
legislation, enforced by the threat of annual, automatic 
sequestration. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Statutory Pay-As-You-Go Act of 2009’’. 
(b) TABLE OF CONTENTS.—The table of contents is 
as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Purpose and expiration. 
Sec. 3. Definitions. 
Sec. 4. PAYGO estimates and PAYGO ledger. 
Sec. 5. Annual report and sequestration order. 
Sec. 6. Calculating a sequestration. 
Sec. 7. Special, temporary rule to reflect current policy. 
Sec. 8. Application of BBEDCA. 
Sec. 9. Amendments to the baseline. 
Sec. 10. Technical corrections. 
Sec. 11. Conforming amendments. 
Sec. 12. Exempt programs and activities. 
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SEC. 2. PURPOSE AND EXPIRATION. 
(a) PURPOSE.—The purpose of this Act is to reestab-
lish a statutory procedure to enforce a rule of budget neu-
trality on new tax and mandatory spending legislation en-
acted through the end of calendar year 2013, by creating 
an automatic statutory penalty that Congress and the 
President will seek to avoid. 
(b) EXPIRATION.—Sections 1 through 8 of this Act 
shall expire on the later of December 31, 2013, or the 
issuance and implementation of a sequestration order for 
fiscal year 2014 if one is required by this Act. 
SEC. 3. DEFINITIONS. 
As used in this Act— 
(1) The term ‘‘BBEDCA’’ means the Balanced 
Budget and Emergency Deficit Control Act of 1985. 
(2) The terms ‘‘appropriation Act’’, ‘‘budget 
authority’’, and ‘‘outlays’’ have the meanings given 
to them in section 3 of the Congressional Budget 
and Impoundment Control Act of 1974. 
(3) The terms ‘‘baseline’’, ‘‘budget year’’, 
‘‘CBO’’, 
‘‘current 
year’’, 
‘‘deposit 
insurance’’, 
‘‘OMB’’, ‘‘sequester’’, and ‘‘sequestration’’ have the 
meanings given to them in section 250 of BBEDCA. 
(4) The term ‘‘AMT’’ means the Alternative 
Minimum Tax for individuals under sections 55–59 
of the Internal Revenue Code of 1986, the term 
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‘‘EGTRRA’’ means the Economic Growth and Tax 
Relief Reconciliation Act of 2001 (Public Law 107– 
16), and the term ‘‘JGTRRA’’ means the Jobs and 
Growth Tax Relief and Reconciliation Act of 2003 
(Public Law 108–27). 
(5) The term ‘‘budgetary effects’’ means the 
amounts by which PAYGO legislation changes man-
datory outlays or revenues relative to the baseline. 
Budgetary effects that increase mandatory outlays 
or decrease revenues are termed ‘‘costs’’ and budg-
etary effects that increase revenues or decrease man-
datory outlays are termed ‘‘savings’’. For purposes 
of these definitions, off-budget effects and debt serv-
ice effects are not counted as budgetary effects. 
(6) The term ‘‘debit’’ refers to the net total 
amount, when positive, by which costs recorded on 
the PAYGO ledger for a fiscal year exceed savings 
recorded on that ledger for that year. 
(7) The term ‘‘discretionary programs’’ refers 
to programs funded though appropriation Acts other 
than mandatory programs. 
(8) The term ‘‘entitlement law’’ means the stat-
utory mandate or requirement of the United States 
to incur a financial obligation unless that obligation 
is explicitly conditioned on the appropriation in sub-
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sequent legislation of sufficient funds for that pur-
pose. 
(9) The term ‘‘mandatory outlays’’ refers to 
outlays flowing from— 
(A) budget authority provided by laws 
other than appropriation Acts; 
(B) entitlement laws; or 
(C) the Supplemental Nutrition Assistance 
Program, and the term ‘‘mandatory programs’’ 
refers to programs that produce mandatory out-
lays. 
(10) The term ‘‘outyear’’ means a fiscal year 
that occurs one or more years after the budget year. 
(11) The term ‘‘PAYGO ledger’’ refers to a 
table maintained by OMB (A) containing a column 
for each fiscal year 2010 through 2014 and record-
ing in the applicable column or columns the average 
of the budgetary effects of each PAYGO Act enacted 
after the enactment of this Act and before January 
1, 2014, and (B) displaying the net sum for each of 
those fiscal years of the average budgetary effects of 
all such Acts. 
(12) The term ‘‘PAYGO legislation’’ or a 
‘‘PAYGO Act’’ refer to legislation that is scored as 
increasing or decreasing governmental receipts or 
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mandatory outlays relative to the baseline, except 
that when those budgetary effects are caused by 
substantive legislative provisions in appropriation 
Acts, the current-year and budget-year effects of 
those provisions are not considered PAYGO legisla-
tion. 
(13) The term ‘‘timing shift’’ refers to a delay 
of the date on which mandatory outlays would other-
wise occur from the ninth outyear to the tenth out-
year or an acceleration of the date on which reve-
nues or offsetting receipts or collections would other-
wise occur from the tenth outyear to the ninth out-
year. 
SEC. 4. PAYGO ESTIMATES AND PAYGO LEDGER. 
(a) CBO ESTIMATES.—As soon as practicable after 
Congress completes action on any PAYGO legislation, 
CBO shall provide an estimate of its budgetary effects to 
OMB. 
(b) PAYGO LEDGER.—OMB shall maintain and 
make publicly available a document containing a PAYGO 
ledger and, not later than 7 days (excluding weekends and 
legal holidays) after the enactment of any PAYGO legisla-
tion, OMB shall record on that ledger its estimate of the 
legislation’s budgetary effects in each fiscal year, applying 
the look-back requirement of subsection (e) and the aver-
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aging requirement of subsection (h). The document shall 
also explain any major differences between the OMB and 
CBO estimates of the budgetary effects of PAYGO legisla-
tion. 
(c) BASIS OF OMB ESTIMATES.—When estimating 
and recording the budgetary effects of a PAYGO Act, 
OMB shall employ economic and technical assumptions 
consistent with those in the President’s most recent Budg-
et submitted under section 1105 of title 31, United States 
Code, and shall use probabilistic methods where appro-
priate. Once it enters budgetary effects on the ledger, 
OMB shall not change the entries other than to correct 
errors. OMB’s assumptions, data, determinations, esti-
mates, and methodology under this Act are not subject 
to review in any judicial or administrative proceeding. 
(d) CURRENT POLICY EXCEPTIONS FOR CERTAIN 
LEGISLATION.—Notwithstanding the definitions in para-
graphs (5), (11), and (12) of section 3, OMB estimates 
of provisions of legislation within the four areas of the 
budget identified in section 7 shall be entered on the 
PAYGO scorecard as specified in that section, and the es-
timates so entered shall be treated as the budgetary effects 
of PAYGO legislation for purposes of this section. 
(e) LOOK-BACK TO CAPTURE CURRENT-YEAR EF-
FECTS.—For purposes of this section, OMB shall treat the 
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budgetary effects of PAYGO legislation enacted during a 
session of Congress that occur during the current year as 
though they occurred in the budget year. 
(f) TIMING SHIFTS.—For purposes of this section, 
OMB and CBO shall not count timing shifts in their esti-
mates of the budgetary effects of PAYGO legislation. 
(g) EMERGENCY LEGISLATION.—If a provision of 
PAYGO legislation is enacted that the President des-
ignates as an emergency requirement and that the Con-
gress so designates in statute, OMB shall display the 
budgetary effects of that provision as an addendum in the 
document containing the PAYGO ledger but shall not 
record the budgetary effects in the ledger itself. 
(h) AVERAGING USED TO MEASURE COMPLIANCE 
OVER TEN YEARS.—OMB shall cumulate the budgetary 
effects of a PAYGO Act over the budget year (which in-
cludes any look-back effects under subsection (e)) and the 
nine subsequent outyears, divide that cumulative total by 
ten, and enter the quotient in the budget-year column of 
the PAYGO ledger and in each subsequent column, if any, 
through the column for 2014. 
(i) SCOREKEEPING GUIDELINES.—OMB and CBO 
shall prepare estimates under this paragraph in conform-
ance with scorekeeping guidelines determined after con-
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sultation among the House and Senate Committees on the 
Budget, CBO, and OMB. 
(j) TREATMENT OF PROGRAM CONVERSIONS.—For 
purposes of this section, and notwithstanding other provi-
sions of this Act— 
(1) if legislation converts an identifiable ele-
ment of a mandatory program into a discretionary 
program (with that program element or a substan-
tially similar one continuing to be authorized), OMB 
and CBO shall not score the conversion of that ele-
ment as reducing mandatory outlays; and 
(2) if legislation converts an identifiable ele-
ment of a discretionary program into a mandatory 
program, OMB and CBO shall estimate the legisla-
tion’s budgetary effects in each year by subtracting 
the discretionary baseline levels of that element from 
the amount by which that legislation increases man-
datory outlays in that year. 
SEC. 5. ANNUAL REPORT AND SEQUESTRATION ORDER. 
(a) ANNUAL REPORT.—No later than 14 days (ex-
cluding weekends and holidays) after Congress adjourns 
to end a session, OMB shall make publicly available an 
annual PAYGO report and publish in the Federal Register 
a notice of the report and information on how it can be 
obtained. The report shall include an up-to-date document 
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containing a PAYGO ledger and information about esti-
mating differences as required by section 4(b), a descrip-
tion of and justification for any current policy exceptions 
made under section 4(d), information about emergency 
legislation (if any) required by section 4(g), information 
about any sequestration if required by subsection (b), and 
other data and explanations that enhance public under-
standing of this Act and actions taken under it. If Con-
gress does not adjourn to end a session, then for the pur-
poses of this Act it shall be deemed to have done so on 
December 31 of that session. 
(b) SEQUESTRATION ORDER.—If the annual report 
issued at the end of a session of Congress under sub-
section (a) shows a debit on the PAYGO ledger for the 
budget year, OMB shall prepare and the President shall 
issue an order sequestering budgetary resources from 
mandatory programs by enough to fully offset that debit, 
as prescribed in section 6. OMB shall include that order 
in the annual report and transmit it to the House of Rep-
resentatives and the Senate. If the President issues a se-
questration order, the annual report shall contain, for each 
budget account to be sequestered, estimates of the baseline 
level of budgetary resources subject to sequestration, the 
amount of budgetary resources to be sequestered, and the 
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outlay reductions that will occur in the budget year and 
the subsequent fiscal year because of that sequestration. 
SEC. 6. CALCULATING A SEQUESTRATION. 
(a) SEQUESTRATION BASE.—For purposes of this 
section, OMB shall assume that mandatory programs are 
at the levels in the baseline before the implementation of 
the sequestration order. 
(b) 
REDUCING
NONEXEMPT
BUDGETARY
RE-
SOURCES BY A UNIFORM PERCENTAGE.—OMB shall cal-
culate the uniform percentage by which the budgetary re-
sources of nonexempt mandatory programs are to be se-
questered such that the outlay savings resulting from that 
sequestration, as calculated under subsection (c), shall 
fully offset the budget-year debit on the PAYGO ledger, 
if any. If the uniform percentage calculated under the 
prior sentence exceeds 4 percent, the Medicare programs 
described in section 256(d) of BBEDCA shall be reduced 
by 4 percent and the uniform percentage by which the 
budgetary resources of all other nonexempt mandatory 
programs are to be sequestered shall be increased, as nec-
essary, so that the sequestration of Medicare and of all 
other nonexempt mandatory programs together produces 
the required outlay savings. 
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(c) OUTLAY SAVINGS.—In determining the amount 
by which a sequestration offsets a budget-year debit, OMB 
shall count— 
(1) the amount by which the sequestration in a 
crop year of crop support payments, pursuant to 
section 256(j) of BBEDCA, reduces outlays in the 
budget year and the subsequent fiscal year; 
(2) the amount by which the sequestration of 
Medicare payments in the 12-month period following 
the sequestration order, pursuant to section 256(d) 
of BBEDCA, reduces outlays in the budget year and 
the subsequent fiscal year; and 
(3) the amount by which the sequestration in 
the budget year of the budgetary resources of other 
nonexempt mandatory programs reduces mandatory 
outlays in the budget year and in the subsequent fis-
cal year. 
SEC. 7. SPECIAL, TEMPORARY RULE TO REFLECT CURRENT 
POLICY. 
(a) PURPOSE.—The purpose of this section is to es-
tablish a temporary rule addressing the scoring of legisla-
tion affecting four areas of the budget and superseding 
the scoring rules otherwise provided by this Act to the ex-
tent they are inconsistent. The four areas covered by this 
section are— 
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(1) payments made under section 1848 of the 
Social Security Act (titled Payment for Physicians’ 
Services); 
(2) the Estate and Gift Tax under subtitle B of 
the Internal Revenue Code of 1986; 
(3) the AMT; and 
(4) provisions of EGTRRA or JGTRRA that 
amended the Internal Revenue Code of 1986 (or 
provisions in later statutes further amending the 
amendments made by EGTRRA or JGTRRA), other 
than— 
(A) the provisions of those two Acts that 
were made permanent by the Pension Protec-
tion Act of 2006 (Public Law 109–280); 
(B) amendments to the estate and gift tax 
referred to in paragraph (2); and 
(C) the AMT referred to in paragraph (3). 
(b) DURATION.—This section shall remain in effect 
through December 31, 2010, for each of the four areas 
specified in subsection (a), except that if the President de-
termines that legislation sufficiently consistent with cur-
rent policy as described in subsection (c)(2) has not been 
enacted in one or more of those four areas by that date, 
the provisions of this section will remain in effect with re-
spect to that area or those areas until such legislation has 
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been enacted or until December 31, 2011, whichever oc-
curs sooner. 
(c) CURRENT POLICY PROJECTION
AND INITIAL 
CURRENT LAW PROJECTIONS.— 
(1) For purposes of this section, the budgetary 
effects of legislation of the type referred to in sub-
section (a) shall be estimated relative to the baseline 
under section 257 of BBEDCA but the budgetary 
effects of that legislation shall be entered on the 
PAYGO ledger only to the extent that they fall out-
side a range bounded by the current policy projec-
tion under paragraph (2) and the initial current law 
projection under paragraph (3), as specified under 
subsections (d), (e), or (f), as applicable. Each of 
those two boundary projections shall be estimated 
using the policy assumptions stated in paragraph (2) 
or (3) as applicable, regardless of the enactment of 
subsequent legislation, but the estimates of the dol-
lar levels of those two boundary projections shall 
change— 
(A) when economic and technical assump-
tions change with the issuance of a new budget 
under section 1105 of title 31 United States 
Code; 
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(B) with changes in the assumed effective 
date of the legislation that is measured against 
those two projections; and 
(C) to the extent the policy assumptions 
under either of those two projections interact 
with other aspects of law, when legislation af-
fecting those other aspects of law is enacted. 
With respect only to legislation affecting the AMT 
or the amendments to provisions of the income tax 
referred to in subsection (a)(4), the dollar levels of 
those two boundary projections shall be estimated 
separately, and the determination of whether and 
the extent to which budgetary effects fall outside the 
boundaries shall be made separately, for each sepa-
rate provision within that legislation. 
(2) During the period specified in subsection 
(b), there shall exist a current policy projection in 
addition to the baseline specified in section 257 of 
BBEDCA. This projection shall— 
(A) with respect to payments made under 
section 1848 of the Social Security Act, assume 
that the applicable payment rates and payment 
policies in effect for 2009 remain in effect 
thereafter without change; 
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(B) with respect to the estate and gift tax, 
assume that the tax rates, nominal exemption 
amounts, and related parameters in effect for 
tax year 2009 remain in effect thereafter with-
out change; 
(C) with respect to the AMT, assume that 
the exemption amounts and related parameters 
in effect for tax year 2009 are increased in each 
subsequent year by an amount equal to the 
cost-of-living adjustment determined under sec-
tion 1(f)(3) of the Internal Revenue Code of 
1986 for the calendar year in which the taxable 
year begins, determined by substituting ‘‘cal-
endar year 2008’’ for ‘‘calendar year 1992’’ in 
subparagraph (B) thereof; and 
(D) with respect to the income tax provi-
sions referred to in subsection (a)(4), assume 
that each such separate provision scheduled on 
June 8, 2009, to be in effect for tax year 2010 
remains in effect thereafter without change, 
other than applicable indexing. 
(3) INITIAL CURRENT LAW PROJECTION.—Dur-
ing the period specified in subsection (b), there shall 
exist an initial current law projection in addition to 
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the baseline specified in section 257 of BBEDCA. 
This projection shall— 
(A) with respect to payments made under 
section 1848 of the Social Security Act, assume 
that the applicable payment rates and payment 
policies scheduled on June 8, 2009, to be in ef-
fect for each subsequent fiscal year shall be in 
effect as scheduled; 
(B) with respect to the estate and gift tax, 
assume that the tax rates, nominal exemption 
amounts, and related parameters scheduled on 
June 8, 2009, to be in effect for each subse-
quent tax year shall be in effect as scheduled; 
(C) with respect to the AMT, assume that 
the exemption amounts and related parameters 
scheduled on June 8, 2009, to be in effect for 
each subsequent tax year shall be in effect as 
scheduled; and 
(D) with respect to provisions of the in-
come tax referred to in subsection (a)(4), as-
sume that each such provision scheduled on 
June 8, 2009, to be in effect for each subse-
quent tax year shall be in effect as scheduled. 
(d) BUDGETARY EFFECTS OF CERTAIN MEDICARE 
LEGISLATION.—Notwithstanding the definitions in para-
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graphs (5), (11), and (12) of section 3, OMB shall enter 
on the PAYGO ledger the budgetary effects of any provi-
sion of PAYGO legislation that amends or supersedes the 
system of payments under section 1848 of the Social Secu-
rity Act— 
(1) only to the extent that the level of net Medi-
care outlays are estimated to be higher in a fiscal 
year than if that provision of PAYGO legislation had 
instead enacted (or maintained) the current policy 
projection; or 
(2) only to the extent that the level of net Medi-
care outlays are estimated to be lower in a fiscal 
year than if that provision of PAYGO legislation had 
instead enacted (or maintained) the initial current 
law projection. 
(e) BUDGETARY EFFECTS OF ESTATE AND GIFT TAX 
LEGISLATION.—Notwithstanding the definitions in para-
graphs (5), (11), and (12) of section 3, OMB shall enter 
on the PAYGO ledger the budgetary effects of any provi-
sion of PAYGO legislation that amends the estate and gift 
tax— 
(1) only to the extent that total revenues in a 
fiscal year are estimated to be changed because tax 
liability under the estate and gift tax is estimated to 
be higher in tax year 2010 than if that provision of 
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PAYGO legislation had instead enacted (or main-
tained) the current policy projection; 
(2) only to the extent that total revenues in a 
fiscal year are estimated to be changed because tax 
liability under the estate and gift tax is estimated to 
be lower in tax year 2010 than if that provision of 
PAYGO legislation had instead enacted (or main-
tained) the initial current law projection; 
(3) only to the extent that total revenues in a 
fiscal year are estimated to be changed because tax 
liability under the estate and gift tax is estimated to 
be lower in a tax year after 2010 than if that provi-
sion of PAYGO legislation had instead enacted (or 
maintained) the current policy projection; or 
(4) only to the extent that total revenues in a 
fiscal year are estimated to be changed because tax 
liability under the estate and gift tax is estimated to 
be higher in a tax year after 2010 than if that provi-
sion of PAYGO legislation had instead enacted (or 
maintained) the initial current law projection. 
(f) BUDGETARY EFFECTS OF AMT AND CERTAIN IN-
COME TAX LEGISLATION TAKEN SEPARATELY; STACKING 
ORDER AND INTERACTIVE EFFECTS.—Notwithstanding 
the definitions in paragraphs (5), (11), and (12) of section 
3, OMB shall enter on the PAYGO ledger the budgetary 
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effects of any PAYGO legislation that amends the AMT 
or amends one of the income tax provisions referred to 
in subsection (a)(4)— 
(1) only to the extent that the level of income 
tax revenues is estimated to be lower and the level 
of outlays for refundable tax credits is estimated to 
be higher in a fiscal year than if that PAYGO legis-
lation had instead enacted (or maintained) the cur-
rent policy projection with respect to that provision 
of the income tax; or 
(2) only to the extent that the level of income 
tax revenues is estimated to be higher and the level 
of outlays for refundable tax credits is estimated to 
be lower in a fiscal year than if that PAYGO legisla-
tion had instead enacted (or maintained) the initial 
current law projection with respect to that provision 
of the income tax. 
In making estimates under this section of the budgetary 
effects of a PAYGO Act that amends both the AMT and 
at least one separate provision of the income tax, or 
amends more than one separate provision of the income 
tax, OMB shall first estimate the budgetary effects of any 
amendment to the AMT contained in that Act, and shall 
then estimate the budgetary effects of each remaining 
amendment to the income tax contained in that Act as 
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though any AMT amendments contained in that Act and 
the preceding amendments made by that Act had been en-
acted but the succeeding amendments had not. For pur-
poses of this section, each separate income tax rate shall 
be considered a separate provision. 
SEC. 8. APPLICATION OF BBEDCA. 
For purposes of this Act— 
(1) notwithstanding section 275 of BBEDCA, 
the provisions of sections 255, 256, and 257 of 
BBEDCA, as amended by this Act, shall apply to 
the provisions of this Act; 
(2) references in sections 255, 256, and 257 to 
‘‘this part’’ shall be interpreted as applying to this 
Act; 
(3) references in sections 255, 256, and 257 of 
BBEDCA to ‘‘section 254’’ shall be interpreted as 
referencing section 5 of this Act; 
(4) the reference in section 256(b) of BBEDCA 
to ‘‘section 252 or 253’’ shall be interpreted as ref-
erencing section 5 of this Act; 
(5) the reference in section 256(d)(1) of 
BBEDCA to ‘‘section 252 or 253’’ shall be inter-
preted as referencing section 6 of this Act; 
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