‘‘(B) The term ‘dollar amount of discre-
tionary budget authority’ does not include—
‘‘(i) direct spending; 
‘‘(ii) budget authority in an appro-
priation law which funds direct spending 
provided for in other law; 
‘‘(iii) any existing budget authority 
canceled in an appropriation law; or 
‘‘(iv) any restriction, condition, or lim-
itation in an appropriation law or the ac-
companying statement of managers or 
committee reports on the expenditure of 
budget authority for an account, program, 
project, or activity, or on activities involv-
ing such expenditure. 
‘‘(8) ITEM OF DIRECT SPENDING.—The term 
‘item of direct spending’ means any provision of law 
that results in an increase in budget authority or 
outlays for direct spending relative to the most re-
cent levels calculated consistent with the method-
ology used to calculate a baseline under section 257 
of the Balanced Budget and Emergency Deficit Con-
trol Act of 1985 and included with a budget submis-
sion under section 1105(a) of title 31, United States 
Code, in the first year or the 5-year period for which
the item is effective. However, such item does not in-
clude an extension or reauthorization of existing di-
rect spending, but instead only refers to provisions 
of law that increase such direct spending. 
‘‘(9) OMB.—The term ‘OMB’ means the Direc-
tor of the Office of Management and Budget. 
‘‘(10) OMNIBUS
RECONCILIATION
OR
APPRO-
PRIATION MEASURE.—The term ‘omnibus reconcili-
ation or appropriation measure’ means—
‘‘(A) in the case of a reconciliation bill, any 
such bill that is reported to its House by the 
Committee on the Budget; or 
‘‘(B) in the case of an appropriation meas-
ure, any such measure that provides appropria-
tions for programs, projects, or activities falling 
within 2 or more section 302(b) suballocations. 
‘‘(11) TARGETED TAX BENEFIT.—(A) The term 
‘targeted tax benefit’ means any revenue-losing pro-
vision that provides a Federal tax deduction, credit, 
exclusion, or preference to only one beneficiary (de-
termined with respect to either present law or any 
provision of which the provision is a part) under the 
Internal Revenue Code of 1986 in any year for 
which the provision is in effect; 
‘‘(B) for purposes of subparagraph (A)—
‘‘(i) all businesses and associations 
that are members of the same controlled 
group of corporations (as defined in sec-
tion 1563(a) of the Internal Revenue Code 
of 1986) shall be treated as a single bene-
ficiary; 
‘‘(ii) all shareholders, partners, mem-
bers, or beneficiaries of a corporation, 
partnership, association, or trust or estate, 
respectively, shall be treated as a single 
beneficiary; 
‘‘(iii) all employees of an employer 
shall be treated as a single beneficiary; 
‘‘(iv) all qualified plans of an em-
ployer shall be treated as a single bene-
ficiary; 
‘‘(v) all beneficiaries of a qualified 
plan shall be treated as a single bene-
ficiary; 
‘‘(vi) all contributors to a charitable 
organization shall be treated as a single 
beneficiary; 
‘‘(vii) all holders of the same bond 
issue shall be treated as a single bene-
ficiary; and
‘‘(viii) if a corporation, partnership, 
association, trust or estate is the bene-
ficiary of a provision, the shareholders of 
the corporation, the partners of the part-
nership, the members of the association, or 
the beneficiaries of the trust or estate shall 
not also be treated as beneficiaries of such 
provision; 
‘‘(C) for the purpose of this paragraph, the 
term ‘revenue-losing provision’ means any pro-
vision that is estimated to result in a reduction 
in Federal tax revenues (determined with re-
spect to either present law or any provision of 
which the provision is a part) for any one of the 
two following periods—
‘‘(i) the first fiscal year for which the 
provision is effective; or 
‘‘(ii) the period of the 5 fiscal years 
beginning with the first fiscal year for 
which the provision is effective; and 
‘‘(D) the terms used in this paragraph 
shall have the same meaning as those terms 
have generally in the Internal Revenue Code of 
1986, unless otherwise expressly provided.
‘‘EXPIRATION 
‘‘SEC. 1018. This title shall have no force or effect 
on or after October 1, 2012.’’. 
SEC. 3. TECHNICAL AND CONFORMING AMENDMENTS. 
(a) EXERCISE OF RULEMAKING POWERS.—Section 
904 of the Congressional Budget Act of 1974 (2 U.S.C. 
621 note) is amended—
(1) in subsection (a), by striking ‘‘1017’’ and 
inserting ‘‘1012’’; and 
(2) in subsection (d), by striking ‘‘section 
1017’’ and inserting ‘‘section 1012’’. 
(b) ANALYSIS
BY CONGRESSIONAL BUDGET OF-
FICE.—Section 402 of the Congressional Budget Act of 
1974 is amended by inserting ‘‘(a)’’ after ‘‘402.’’ and by 
adding at the end the following new subsection: 
‘‘(b) Upon the receipt of a special message under sec-
tion 1011 proposing to cancel any item of direct spending, 
the Director of the Congressional Budget Office shall pre-
pare an estimate of the savings in budget authority or out-
lays resulting from such proposed cancellation relative to 
the most recent levels calculated consistent with the meth-
odology used to calculate a baseline under section 257 of 
the Balanced Budget and Emergency Deficit Control Act 
of 1985 and included with a budget submission under sec-
tion 1105(a) of title 31, United States Code, and transmit
such estimate to the chairmen of the Committees on the 
Budget of the House of Representatives and Senate.’’. 
(c) CLERICAL AMENDMENTS.—(1) Section 1(a) of 
the Congressional Budget and Impoundment Control Act 
of 1974 is amended by striking the last sentence. 
(2) Section 1022(c) of such Act (as redesignated) is 
amended is amended by striking ‘‘rescinded or that is to 
be reserved’’ and insert ‘‘canceled’’ and by striking 
‘‘1012’’ and inserting ‘‘1011’’. 
(3) TABLE OF CONTENTS.—The table of contents set 
forth in section 1(b) of the Congressional Budget and Im-
poundment Control Act of 1974 is amended by deleting 
the contents for parts B and C of title X and inserting 
the following:
‘‘PART B—LEGISLATIVE LINE-ITEM VETO 
‘‘Sec. 1011. Line item veto authority. 
‘‘Sec. 1012. Procedures for expedited consideration. 
‘‘Sec. 1013. Presidential deferral authority. 
‘‘Sec. 1014. Identification of targeted tax benefits. 
‘‘Sec. 1015. Treatment of cancellations. 
‘‘Sec. 1016. Reports by comptroller general. 
‘‘Sec. 1017. Definitions. 
‘‘Sec. 1018. Expiration. 
‘‘Sec. 1019. Suits by Comptroller General. 
‘‘Sec. 1020. Proposed Deferrals of budget authority.’’.
(d) EFFECTIVE DATE.—The amendments made by 
this Act shall take effect on the date of its enactment and 
apply only to any dollar amount of discretionary budget 
authority, item of direct spending, or targeted tax benefit
provided in an Act enacted on or after the date of enact-
ment of this Act. 
SEC. 4. SENSE OF CONGRESS ON ABUSE OF PROPOSED 
CANCELLATIONS. 
It is the sense of Congress no President or any execu-
tive branch official should condition the inclusion or exclu-
sion or threaten to condition the inclusion or exclusion of 
any proposed cancellation in any special message under 
this section upon any vote cast or to be cast by any Mem-
ber of either House of Congress.
Passed the House of Representatives June 22, 2006. 
Attest:
Clerk.
109TH CONGRESS 
2D SESSION 
H. R. 4890
AN ACT 
To amend the Congressional Budget and Impound-
ment Control Act of 1974 to provide for the ex-
pedited consideration of certain proposed rescis-
sions of budget authority.