1600 
the disaster assistance program guarantee for 
the noninsurable commodity. 
‘‘(D) EQUITABLE TREATMENT FOR NON- 
YIELD BASED POLICIES.—The Secretary shall 
establish equitable treatment for non-yield 
based policies and plans of insurance, such as 
the Adjusted Gross Revenue Lite insurance pro-
gram. 
‘‘(4) FARM REVENUE.— 
‘‘(A) IN GENERAL.—For purposes of this 
subsection, the total farm revenue for a farm, 
shall equal the sum obtained by adding— 
‘‘(i) the estimated actual value for 
each crop produced on a farm by using the 
product obtained by multiplying— 
‘‘(I) the actual crop acreage har-
vested by an eligible producer on a 
farm; 
‘‘(II) the estimated actual yield 
of the crop production; and 
‘‘(III) subject to subparagraphs 
(B) and (C), to the extent practicable, 
the national average market price re-
ceived for the marketing year, as de-
termined by the Secretary; 
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‘‘(ii) 15 percent of amount of any di-
rect payments made to the producer under 
sections 1103 and 1303 of the Food, Con-
servation, and Energy Act of 2008 or suc-
cessor sections; 
‘‘(iii) the total amount of any counter- 
cyclical payments made to the producer 
under sections 1104 and 1304 of the Food, 
Conservation, and Energy Act of 2008 or 
successor sections or of any average crop 
revenue election payments made to the 
producer under section 1105 of that Act; 
‘‘(iv) the total amount of any loan de-
ficiency payments, marketing loan gains, 
and marketing certificate gains made to 
the producer under subtitles B and C of 
the Food, Conservation, and Energy Act of 
2008 or successor subtitles; 
‘‘(v) the amount of payments for pre-
vented planting on a farm; 
‘‘(vi) the amount of crop insurance in-
demnities received by an eligible producer 
on a farm for each crop on a farm; 
‘‘(vii) the amount of payments an eli-
gible producer on a farm received under 
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the noninsured crop assistance program for 
each crop on a farm; and 
‘‘(viii) the value of any other natural 
disaster assistance payments provided by 
the Federal Government to an eligible pro-
ducer on a farm for each crop on a farm 
for the same loss for which the eligible pro-
ducer is seeking assistance. 
‘‘(B) ADJUSTMENT.—The Secretary shall 
adjust the average market price received by the 
eligible producer on a farm— 
‘‘(i) to reflect the average quality dis-
counts applied to the local or regional mar-
ket price of a crop or mechanically har-
vested forage due to a reduction in the in-
trinsic characteristics of the production re-
sulting from adverse weather, as deter-
mined annually by the State office of the 
Farm Service Agency; and 
‘‘(ii) to account for a crop the value of 
which is reduced due to excess moisture re-
sulting from a disaster-related condition. 
‘‘(C) MAXIMUM
AMOUNT
FOR
CERTAIN 
CROPS.—With respect to a crop for which an el-
igible producer on a farm receives assistance 
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under the noninsured crop assistance program, 
the national average market price received dur-
ing the marketing year shall be an amount not 
more than 100 percent of the price of the crop 
established under the noninsured crop assist-
ance program. 
‘‘(5) EXPECTED REVENUE.—The expected rev-
enue for each crop on a farm shall equal the sum 
obtained by adding— 
‘‘(A) the product obtained by multi-
plying— 
‘‘(i) the greatest of— 
‘‘(I) the adjusted actual produc-
tion history yield of the eligible pro-
ducer on a farm; and 
‘‘(II) the counter-cyclical pro-
gram payment yield; 
‘‘(ii) the acreage planted or prevented 
from being planted for each crop; and 
‘‘(iii) 100 percent of the insurance 
price guarantee; and 
‘‘(B) the product obtained by multi-
plying— 
‘‘(i) 100 percent of the adjusted non-
insured crop assistance program yield; and 
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‘‘(ii) 100 percent of the noninsured 
crop assistance program price for each of 
the crops on a farm. 
‘‘(c) LIVESTOCK INDEMNITY PAYMENTS.— 
‘‘(1) PAYMENTS.—The Secretary shall use such 
sums as are necessary from the Trust Fund to make 
livestock indemnity payments to eligible producers 
on farms that have incurred livestock death losses in 
excess of the normal mortality due to adverse weath-
er, as determined by the Secretary, during the cal-
endar year, including losses due to hurricanes, 
floods, blizzards, disease, wildfires, extreme heat, 
and extreme cold. 
‘‘(2) PAYMENT RATES.—Indemnity payments to 
an eligible producer on a farm under paragraph (1) 
shall be made at a rate of 75 percent of the market 
value of the applicable livestock on the day before 
the date of death of the livestock, as determined by 
the Secretary. 
‘‘(d) LIVESTOCK FORAGE DISASTER PROGRAM.— 
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) COVERED LIVESTOCK.— 
‘‘(i) IN GENERAL.—The term ‘covered 
livestock’ means livestock of an eligible 
livestock producer that, during the 60 days 
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prior to the beginning date of a qualifying 
drought or fire condition, as determined by 
the Secretary, the eligible livestock pro-
ducer— 
‘‘(I) owned; 
‘‘(II) leased; 
‘‘(III) purchased; 
‘‘(IV) entered into a contract to 
purchase; 
‘‘(V) is a contract grower; or 
‘‘(VI) sold or otherwise disposed 
of due to qualifying drought condi-
tions during— 
‘‘(aa) the current production 
year; or 
‘‘(bb) subject to paragraph 
(3)(B)(ii), 1 or both of the 2 pro-
duction years immediately pre-
ceding the current production 
year. 
‘‘(ii) EXCLUSION.—The term ‘covered 
livestock’ does not include livestock that 
were or would have been in a feedlot, on 
the beginning date of the qualifying 
drought or fire condition, as a part of the 
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normal business operation of the eligible 
livestock producer, as determined by the 
Secretary. 
‘‘(B) 
DROUGHT
MONITOR.—The 
term 
‘drought 
monitor’ 
means 
a 
system 
for 
classifying drought severity according to a 
range of abnormally dry to exceptional drought, 
as defined by the Secretary. 
‘‘(C) ELIGIBLE LIVESTOCK PRODUCER.— 
‘‘(i) IN GENERAL.—The term ‘eligible 
livestock producer’ means an eligible pro-
ducer on a farm that— 
‘‘(I) is an owner, cash or share 
lessee, or contract grower of covered 
livestock that provides the pastureland 
or grazing land, including cash-leased 
pastureland or grazing land, for the 
livestock; 
‘‘(II) provides the pastureland or 
grazing land for covered livestock, in-
cluding cash-leased pastureland or 
grazing land that is physically located 
in a county affected by drought; 
‘‘(III) certifies grazing loss; and 
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‘‘(IV) meets all other eligibility 
requirements established under this 
subsection. 
‘‘(ii) EXCLUSION.—The term ‘eligible 
livestock producer’ does not include an 
owner, cash or share lessee, or contract 
grower of livestock that rents or leases 
pastureland or grazing land owned by an-
other person on a rate-of-gain basis. 
‘‘(D) NORMAL CARRYING CAPACITY.—The 
term ‘normal carrying capacity’, with respect to 
each type of grazing land or pastureland in a 
county, means the normal carrying capacity, as 
determined under paragraph (3)(D)(i), that 
would be expected from the grazing land or 
pastureland for livestock during the normal 
grazing period, in the absence of a drought or 
fire that diminishes the production of the graz-
ing land or pastureland. 
‘‘(E) NORMAL
GRAZING
PERIOD.—The 
term ‘normal grazing period’, with respect to a 
county, means the normal grazing period during 
the calendar year for the county, as determined 
under paragraph (3)(D)(i). 
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‘‘(2) PROGRAM.—The Secretary shall use such 
sums as are necessary from the Trust Fund to pro-
vide compensation for losses to eligible livestock pro-
ducers due to grazing losses for covered livestock 
due to— 
‘‘(A) a drought condition, as described in 
paragraph (3); or 
‘‘(B) fire, as described in paragraph (4). 
‘‘(3) 
ASSISTANCE
FOR
LOSSES
DUE
TO 
DROUGHT CONDITIONS.— 
‘‘(A) ELIGIBLE LOSSES.— 
‘‘(i) IN
GENERAL.—An eligible live-
stock producer may receive assistance 
under this subsection only for grazing 
losses for covered livestock that occur on 
land that— 
‘‘(I) 
is 
native 
or 
improved 
pastureland with permanent vegeta-
tive cover; or 
‘‘(II) is planted to a crop planted 
specifically for the purpose of pro-
viding grazing for covered livestock. 
‘‘(ii) EXCLUSIONS.—An eligible live-
stock producer may not receive assistance 
under this subsection for grazing losses 
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that occur on land used for haying or graz-
ing under the conservation reserve pro-
gram established under subchapter B of 
chapter 1 of subtitle D of title XII of the 
Food Security Act of 1985 (16 U.S.C. 
3831 et seq.). 
‘‘(B) MONTHLY PAYMENT RATE.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), the payment rate for 
assistance under this paragraph for 1 
month shall, in the case of drought, be 
equal to 60 percent of the lesser of— 
‘‘(I) the monthly feed cost for all 
covered livestock owned or leased by 
the eligible livestock producer, as de-
termined under subparagraph (C); or 
‘‘(II) the monthly feed cost cal-
culated by using the normal carrying 
capacity of the eligible grazing land of 
the eligible livestock producer. 
‘‘(ii) PARTIAL
COMPENSATION.—In 
the case of an eligible livestock producer 
that sold or otherwise disposed of covered 
livestock due to drought conditions in 1 or 
both of the 2 production years immediately 
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preceding the current production year, as 
determined by the Secretary, the payment 
rate shall be 80 percent of the payment 
rate otherwise calculated in accordance 
with clause (i). 
‘‘(C) MONTHLY FEED COST.— 
‘‘(i) IN GENERAL.—The monthly feed 
cost shall equal the product obtained by 
multiplying— 
‘‘(I) 30 days; 
‘‘(II) a payment quantity that is 
equal to the feed grain equivalent, as 
determined under clause (ii); and 
‘‘(III) a payment rate that is 
equal to the corn price per pound, as 
determined under clause (iii). 
‘‘(ii) FEED GRAIN EQUIVALENT.—For 
purposes of clause (i)(I), the feed grain 
equivalent shall equal— 
‘‘(I) in the case of an adult beef 
cow, 15.7 pounds of corn per day; or 
‘‘(II) in the case of any other 
type of weight of livestock, an amount 
determined by the Secretary that rep-
resents the average number of pounds 
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of corn per day necessary to feed the 
livestock. 
‘‘(iii) CORN PRICE PER POUND.—For 
purposes of clause (i)(II), the corn price 
per pound shall equal the quotient ob-
tained by dividing— 
‘‘(I) the higher of— 
‘‘(aa) the national average 
corn price per bushel for the 12- 
month period immediately pre-
ceding March 1 of the year for 
which the disaster assistance is 
calculated; or 
‘‘(bb) the national average 
corn price per bushel for the 24- 
month period immediately pre-
ceding that March 1; by 
‘‘(II) 56. 
‘‘(D) NORMAL
GRAZING
PERIOD
AND 
DROUGHT MONITOR INTENSITY.— 
‘‘(i) FSA COUNTY
COMMITTEE
DE-
TERMINATIONS.— 
‘‘(I) IN
GENERAL.—The Sec-
retary shall determine the normal car-
rying capacity and normal grazing pe-
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riod for each type of grazing land or 
pastureland in the county served by 
the applicable committee. 
‘‘(II) CHANGES.—No change to 
the normal carrying capacity or nor-
mal grazing period established for a 
county under subclause (I) shall be 
made unless the change is requested 
by the appropriate State and county 
Farm Service Agency committees. 
‘‘(ii) DROUGHT INTENSITY.— 
‘‘(I) D2.—An eligible livestock 
producer that owns or leases grazing 
land or pastureland that is physically 
located in a county that is rated by 
the U.S. Drought Monitor as having a 
D2 (severe drought) intensity in any 
area of the county for at least 8 con-
secutive weeks during the normal 
grazing period for the county, as de-
termined by the Secretary, shall be el-
igible to receive assistance under this 
paragraph in an amount equal to 1 
monthly payment using the monthly 
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payment rate determined under sub-
paragraph (B). 
‘‘(II) D3.—An eligible livestock 
producer that owns or leases grazing 
land or pastureland that is physically 
located in a county that is rated by 
the U.S. Drought Monitor as having 
at least a D3 (extreme drought) in-
tensity in any area of the county at 
any time during the normal grazing 
period for the county, as determined 
by the Secretary, shall be eligible to 
receive assistance under this para-
graph— 
‘‘(aa) in an amount equal to 
2 monthly payments using the 
monthly payment rate deter-
mined under subparagraph (B); 
or 
‘‘(bb) if the county is rated 
as 
having 
a 
D3 
(extreme 
drought) intensity in any area of 
the county for at least 4 weeks 
during the normal grazing period 
for the county, or is rated as 
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having 
a 
D4 
(exceptional 
drought) intensity in any area of 
the county at any time during 
the normal grazing period, in an 
amount equal to 3 monthly pay-
ments using the monthly pay-
ment rate determined under sub-
paragraph (B). 
‘‘(4) ASSISTANCE FOR LOSSES DUE TO FIRE ON 
PUBLIC MANAGED LAND.— 
‘‘(A) IN
GENERAL.—An eligible livestock 
producer may receive assistance under this 
paragraph only if— 
‘‘(i) the grazing losses occur on range-
land that is managed by a Federal agency; 
and 
‘‘(ii) the eligible livestock producer is 
prohibited by the Federal agency from 
grazing the normal permitted livestock on 
the managed rangeland due to a fire. 
‘‘(B) PAYMENT RATE.—The payment rate 
for assistance under this paragraph shall be 
equal to 50 percent of the monthly feed cost for 
the total number of livestock covered by the 
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Federal lease of the eligible livestock producer, 
as determined under paragraph (3)(C). 
‘‘(C) PAYMENT DURATION.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), an eligible livestock producer shall be 
eligible to receive assistance under this 
paragraph for the period— 
‘‘(I) beginning on the date on 
which the Federal agency excludes the 
eligible livestock producer from using 
the managed rangeland for grazing; 
and 
‘‘(II) ending on the last day of 
the Federal lease of the eligible live-
stock producer. 
‘‘(ii) LIMITATION.—An eligible live-
stock producer may only receive assistance 
under this paragraph for losses that occur 
on not more than 180 days per year. 
‘‘(5) MINIMUM RISK MANAGEMENT PURCHASE 
REQUIREMENTS.— 
‘‘(A) IN GENERAL.—Except as otherwise 
provided in this paragraph, a livestock producer 
shall only be eligible for assistance under this 
subsection if the livestock producer— 
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‘‘(i) obtained a policy or plan of insur-
ance under the Federal Crop Insurance 
Act (7 U.S.C. 1501 et seq.) for the grazing 
land incurring the losses for which assist-
ance is being requested; or 
‘‘(ii) filed the required paperwork, and 
paid the administrative fee by the applica-
ble State filing deadline, for the non-
insured crop assistance program for the 
grazing land incurring the losses for which 
assistance is being requested. 
‘‘(B) WAIVER
FOR
SOCIALLY
DISADVAN-
TAGED, LIMITED
RESOURCE, OR
BEGINNING 
FARMER OR RANCHER.—In the case of an eligi-
ble livestock producer that is a socially dis-
advantaged farmer or rancher or limited re-
source or beginning farmer or rancher, as de-
termined by the Secretary, the Secretary may— 
‘‘(i) waive subparagraph (A); and 
‘‘(ii) provide disaster assistance under 
this section at a level that the Secretary 
determines to be equitable and appro-
priate. 
‘‘(C) WAIVER FOR 2008 CALENDAR YEAR.— 
In the case of an eligible livestock producer that 
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suffered losses on grazing land during the 2008 
calendar year but does not meet the require-
ments of subparagraph (A), the Secretary shall 
waive subparagraph (A) if the eligible livestock 
producer pays a fee in an amount equal to the 
applicable noninsured crop assistance program 
fee or catastrophic risk protection plan fee re-
quired under subparagraph (A) to the Secretary 
not later than 90 days after the date of enact-
ment of this subtitle. 
‘‘(D) EQUITABLE RELIEF.— 
‘‘(i) IN
GENERAL.—The Secretary 
may provide equitable relief to an eligible 
livestock producer that is otherwise ineli-
gible or unintentionally fails to meet the 
requirements of subparagraph (A) for the 
grazing land incurring the loss on a case- 
by-case basis, as determined by the Sec-
retary. 
‘‘(ii) 2008 CALENDAR YEAR.—In the 
case of an eligible livestock producer that 
suffered losses on grazing land during the 
2008 calendar year, the Secretary shall 
take special consideration to provide equi-
table relief in cases in which the eligible 
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livestock producer failed to meet the re-
quirements of subparagraph (A) due to the 
enactment of this title after the closing 
date of sales periods for crop insurance 
under the Federal Crop Insurance Act (7 
U.S.C. 1501 et seq.) and the noninsured 
crop assistance program. 
‘‘(6) NO DUPLICATIVE PAYMENTS.— 
‘‘(A) IN
GENERAL.—An eligible livestock 
producer may elect to receive assistance for 
grazing or pasture feed losses due to drought 
conditions under paragraph (3) or fire under 
paragraph (4), but not both for the same loss, 
as determined by the Secretary. 
‘‘(B) RELATIONSHIP
TO
SUPPLEMENTAL 
REVENUE
ASSISTANCE.—An eligible livestock 
producer that receives assistance under this 
subsection may not also receive assistance for 
losses to crops on the same land with the same 
intended use under subsection (b). 
‘‘(e) EMERGENCY
ASSISTANCE
FOR
LIVESTOCK, 
HONEY BEES, AND FARM-RAISED FISH.— 
‘‘(1) IN GENERAL.—The Secretary shall use up 
to $50,000,000 per year from the Trust Fund to 
provide emergency relief to eligible producers of live-
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stock, honey bees, and farm-raised fish to aid in the 
reduction of losses due to disease, adverse weather, 
or other conditions, such as blizzards and wildfires, 
as determined by the Secretary, that are not covered 
under subsection (b), (c), or (d). 
‘‘(2) USE OF FUNDS.—Funds made available 
under this subsection shall be used to reduce losses 
caused by feed or water shortages, disease, or other 
factors as determined by the Secretary. 
‘‘(3) AVAILABILITY
OF
FUNDS.—Any funds 
made available under this subsection shall remain 
available until expended. 
‘‘(f) TREE ASSISTANCE PROGRAM.— 
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) ELIGIBLE
ORCHARDIST.—The term 
‘eligible orchardist’ means a person that pro-
duces annual crops from trees for commercial 
purposes. 
‘‘(B) NATURAL DISASTER.—The term ‘nat-
ural disaster’ means plant disease, insect infes-
tation, drought, fire, freeze, flood, earthquake, 
lightning, or other occurrence, as determined by 
the Secretary. 
‘‘(C) NURSERY TREE GROWER.—The term 
‘nursery tree grower’ means a person who pro-
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duces nursery, ornamental, fruit, nut, or Christ-
mas trees for commercial sale, as determined by 
the Secretary. 
‘‘(D) TREE.—The term ‘tree’ includes a 
tree, bush, and vine. 
‘‘(2) ELIGIBILITY.— 
‘‘(A) LOSS.—Subject to subparagraph (B), 
the Secretary shall provide assistance— 
‘‘(i) under paragraph (3) to eligible 
orchardists and nursery tree growers that 
planted trees for commercial purposes but 
lost the trees as a result of a natural dis-
aster, as determined by the Secretary; and 
‘‘(ii) under paragraph (3)(B) to eligi-
ble orchardists and nursery tree growers 
that have a production history for commer-
cial purposes on planted or existing trees 
but lost the trees as a result of a natural 
disaster, as determined by the Secretary. 
‘‘(B) LIMITATION.—An eligible orchardist 
or nursery tree grower shall qualify for assist-
ance under subparagraph (A) only if the tree 
mortality of the eligible orchardist or nursery 
tree grower, as a result of damaging weather or 
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related condition, exceeds 15 percent (adjusted 
for normal mortality). 
‘‘(3) ASSISTANCE.—Subject to paragraph (4), 
the assistance provided by the Secretary to eligible 
orchardists and nursery tree growers for losses de-
scribed in paragraph (2) shall consist of— 
‘‘(A)(i) reimbursement of 70 percent of the 
cost of replanting trees lost due to a natural 
disaster, as determined by the Secretary, in ex-
cess of 15 percent mortality (adjusted for nor-
mal mortality); or 
‘‘(ii) at the option of the Secretary, suffi-
cient seedlings to reestablish a stand; and 
‘‘(B) reimbursement of 50 percent of the 
cost of pruning, removal, and other costs in-
curred by an eligible orchardist or nursery tree 
grower to salvage existing trees or, in the case 
of tree mortality, to prepare the land to replant 
trees as a result of damage or tree mortality 
due to a natural disaster, as determined by the 
Secretary, in excess of 15 percent damage or 
mortality (adjusted for normal tree damage and 
mortality). 
‘‘(4) LIMITATIONS ON ASSISTANCE.— 
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‘‘(A) DEFINITIONS OF LEGAL ENTITY AND 
PERSON.—In this paragraph, the terms ‘legal 
entity’ and ‘person’ have the meaning given 
those terms in section 1001(a) of the Food Se-
curity Act of 1985 (7 U.S.C. 1308(a) (as 
amended by section 1603 of the Food, Con-
servation, and Energy Act of 2008). 
‘‘(B) AMOUNT.—The total amount of pay-
ments received, directly or indirectly, by a per-
son or legal entity (excluding a joint venture or 
general partnership) under this subsection may 
not exceed $100,000 for any crop year, or an 
equivalent value in tree seedlings. 
‘‘(C) ACRES.—The total quantity of acres 
planted to trees or tree seedlings for which a 
person or legal entity shall be entitled to receive 
payments under this subsection may not exceed 
500 acres. 
‘‘(g) RISK
MANAGEMENT
PURCHASE
REQUIRE-
MENT.— 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this section, the eligible producers on a 
farm shall not be eligible for assistance under this 
section (other than subsection (c)) if the eligible pro-
ducers on the farm— 
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‘‘(A) in the case of each insurable com-
modity of the eligible producers on the farm, 
did not obtain a policy or plan of insurance 
under the Federal Crop Insurance Act (7 
U.S.C. 1501 et seq.) (excluding a crop insur-
ance pilot program under that Act); or 
‘‘(B) in the case of each noninsurable com-
modity of the eligible producers on the farm, 
did not file the required paperwork, and pay the 
administrative fee by the applicable State filing 
deadline, for the noninsured crop assistance 
program. 
‘‘(2) MINIMUM.—To be considered to have ob-
tained insurance under paragraph (1)(A), an eligible 
producer on a farm shall have obtained a policy or 
plan of insurance with not less than 50 percent yield 
coverage at 55 percent of the insurable price for 
each crop grazed, planted, or intended to be planted 
for harvest on a whole farm. 
‘‘(3) WAIVER FOR SOCIALLY DISADVANTAGED, 
LIMITED
RESOURCE, OR
BEGINNING
FARMER
OR 
RANCHER.—With respect to eligible producers that 
are socially disadvantaged farmers or ranchers or 
limited resource or beginning farmers or ranchers, 
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as determined by the Secretary, the Secretary 
may— 
‘‘(A) waive paragraph (1); and 
‘‘(B) provide disaster assistance under this 
section at a level that the Secretary determines 
to be equitable and appropriate. 
‘‘(4) WAIVER
FOR
2008
CROP
YEAR.—In the 
case of an eligible producer that suffered losses in 
an insurable commodity or noninsurable commodity 
during the 2008 crop year but does not meet the re-
quirements of paragraph (1), the Secretary shall 
waive paragraph (1) if the eligible producer pays a 
fee in an amount equal to the applicable noninsured 
crop assistance program fee or catastrophic risk pro-
tection plan fee required under paragraph (1) to the 
Secretary not later than 90 days after the date of 
enactment of this subtitle. 
‘‘(5) EQUITABLE RELIEF.— 
‘‘(A) IN
GENERAL.—The Secretary may 
provide equitable relief to eligible producers on 
a farm that are otherwise ineligible or uninten-
tionally fail to meet the requirements of para-
graph (1) for 1 or more crops on a farm on a 
case-by-case basis, as determined by the Sec-
retary. 
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‘‘(B) 2008 CROP YEAR.—In the case of eli-
gible producers on a farm that suffered losses 
in an insurable commodity or noninsurable com-
modity during the 2008 crop year, the Sec-
retary shall take special consideration to pro-
vide equitable relief in cases in which the eligi-
ble producers failed to meet the requirements of 
paragraph (1) due to the enactment of this title 
after the closing date of sales periods for crop 
insurance under the Federal Crop Insurance 
Act (7 U.S.C. 1501 et seq.) and the noninsured 
crop assistance program. 
‘‘(h) PAYMENT LIMITATIONS.— 
‘‘(1) DEFINITIONS OF LEGAL ENTITY AND PER-
SON.—In this subsection, the terms ‘legal entity’ and 
‘person’ have the meaning given those terms in sec-
tion 1001(a) of the Food Security Act of 1985 (7 
U.S.C. 1308(a) (as amended by section 1603 of the 
Food, Conservation, and Energy Act of 2008). 
‘‘(2) AMOUNT.—The total amount of disaster 
assistance payments received, directly or indirectly, 
by a person or legal entity (excluding a joint venture 
or general partnership) under this section (excluding 
payments received under subsection (f)) may not ex-
ceed $100,000 for any crop year. 
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‘‘(3) AGI LIMITATION.—Section 1001D of the 
Food Security Act of 1985 (7 U.S.C. 1308–3a) or 
any successor provision shall apply with respect to 
assistance provided under this section. 
‘‘(4) DIRECT
ATTRIBUTION.—Subsections (e) 
and (f) of section 1001 of the Food Security Act of 
1985 (7 U.S.C. 1308) or any successor provisions 
relating to direct attribution shall apply with respect 
to assistance provided under this section. 
‘‘(i) PERIOD OF EFFECTIVENESS.—This section shall 
be effective only for losses that are incurred as the result 
of a disaster, adverse weather, or other environmental con-
dition that occurs on or before September 30, 2011, as 
determined by the Secretary. 
‘‘(j) NO DUPLICATIVE PAYMENTS.—In implementing 
any other program which makes disaster assistance pay-
ments (except for indemnities made under the Federal 
Crop Insurance Act (7 U.S.C. 1501 et seq.)) and section 
196 of the Federal Agriculture Improvement and Reform 
Act of 1996), the Secretary shall prevent duplicative pay-
ments with respect to the same loss for which a person 
receives a payment under subsections (b), (c), (d), (e), or 
(f). 
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‘‘SEC. 902. AGRICULTURAL DISASTER RELIEF TRUST FUND. 
‘‘(a) CREATION OF TRUST FUND.—There is estab-
lished in the Treasury of the United States a trust fund 
to be known as the ‘Agricultural Disaster Relief Trust 
Fund’, consisting of such amounts as may be appropriated 
or credited to such Trust Fund as provided in this section. 
‘‘(b) TRANSFER TO TRUST FUND.— 
‘‘(1) IN GENERAL.—There are appropriated to 
the 
Agricultural 
Disaster 
Relief 
Trust 
Fund 
amounts equivalent to 3.08 percent of the amounts 
received in the general fund of the Treasury of the 
United States during fiscal years 2008 through 
2011 attributable to the duties collected on articles 
entered, or withdrawn from warehouse, for consump-
tion under the Harmonized Tariff Schedule of the 
United States. 
‘‘(2) AMOUNTS
BASED
ON
ESTIMATES.—The 
amounts appropriated under this section shall be 
transferred at least monthly from the general fund 
of the Treasury of the United States to the Agricul-
tural Disaster Relief Trust Fund on the basis of es-
timates made by the Secretary of the Treasury. 
Proper adjustments shall be made in the amounts 
subsequently transferred to the extent prior esti-
mates were in excess of or less than the amounts re-
quired to be transferred. 
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‘‘(3) LIMITATION ON TRANSFERS TO AGRICUL-
TURAL DISASTER RELIEF TRUST FUND.—No amount 
may be appropriated to the Agricultural Disaster 
Relief Trust Fund on and after the date of any ex-
penditure from the Agricultural Disaster Relief 
Trust Fund which is not permitted by this section. 
The determination of whether an expenditure is so 
permitted shall be made without regard to— 
‘‘(A) any provision of law which is not con-
tained or referenced in this title or in a revenue 
Act, and 
‘‘(B) whether such provision of law is a 
subsequently enacted provision or directly or in-
directly seeks to waive the application of this 
paragraph. 
‘‘(c) ADMINISTRATION.— 
‘‘(1) REPORTS.—The Secretary of the Treasury 
shall be the trustee of the Agricultural Disaster Re-
lief Trust Fund and shall submit an annual report 
to Congress each year on the financial condition and 
the results of the operations of such Trust Fund 
during the preceding fiscal year and on its expected 
condition and operations during the 4 fiscal years 
succeeding such fiscal year. Such report shall be 
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printed as a House document of the session of Con-
gress to which the report is made. 
‘‘(2) INVESTMENT.— 
‘‘(A) IN GENERAL.—The Secretary of the 
Treasury shall invest such portion of the Agri-
cultural Disaster Relief Trust Fund as is not in 
his judgment required to meet current with-
drawals. Such investments may be made only in 
interest bearing obligations of the United 
States. For such purpose, such obligations may 
be acquired— 
‘‘(i) on original issue at the issue 
price, or 
‘‘(ii) by purchase of outstanding obli-
gations at the market price. 
‘‘(B) SALE OF OBLIGATIONS.—Any obliga-
tion acquired by the Agricultural Disaster Re-
lief Trust Fund may be sold by the Secretary 
of the Treasury at the market price. 
‘‘(C) INTEREST ON CERTAIN PROCEEDS.— 
The interest on, and the proceeds from the sale 
or redemption of, any obligations held in the 
Agricultural Disaster Relief Trust Fund shall 
be credited to and form a part of such Trust 
Fund. 
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‘‘(d) 
EXPENDITURES
FROM
TRUST
FUND.— 
Amounts in the Agricultural Disaster Relief Trust Fund 
shall be available for the purposes of making expenditures 
to meet those obligations of the United States incurred 
under section 901 or section 531 of the Federal Crop In-
surance Act (as such sections are in effect on the date 
of the enactment of the Food, Conservation, and Energy 
Act of 2008). 
‘‘(e) AUTHORITY TO BORROW.— 
‘‘(1) IN GENERAL.—There are authorized to be 
appropriated, and are appropriated, to the Agricul-
tural Disaster Relief Trust Fund, as repayable ad-
vances, such sums as may be necessary to carry out 
the purposes of such Trust Fund. 
‘‘(2) REPAYMENT OF ADVANCES.— 
‘‘(A) IN GENERAL.—Advances made to the 
Agricultural Disaster Relief Trust Fund shall 
be repaid, and interest on such advances shall 
be paid, to the general fund of the Treasury 
when the Secretary determines that moneys are 
available for such purposes in such Trust Fund. 
‘‘(B) RATE OF INTEREST.—Interest on ad-
vances made pursuant to this subsection shall 
be— 
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‘‘(i) at a rate determined by the Sec-
retary of the Treasury (as of the close of 
the calendar month preceding the month in 
which the advance is made) to be equal to 
the current average market yield on out-
standing marketable obligations of the 
United States with remaining periods to 
maturity comparable to the anticipated pe-
riod during which the advance will be out-
standing, and 
‘‘(ii) compounded annually. 
‘‘SEC. 903. JURISDICTION. 
‘‘Legislation in the Senate of the United States 
amending section 901 or 902 shall be referred to the Com-
mittee on Finance of the Senate.’’. 
(b) TRANSITION.—For purposes of the 2008 crop 
year, the Secretary shall carry out subsections (f)(4) and 
(h) of section 901 of the Trade Act of 1974 (as added 
by subsection (a)) in accordance with the terms and condi-
tions of sections 1001 through 1001D of the Food Secu-
rity Act of 1985 (16 U.S.C. 1308 et seq.), as in effect 
on September 30, 2007. 
(c) CLERICAL AMENDMENT.—The table of contents 
for the Trade Act of 1974 (19 U.S.C. 2101 et seq.) is 
amended by adding at the end the following: 
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‘‘TITLE IX—SUPPLEMENTAL AGRICULTURAL DISASTER 
ASSISTANCE 
‘‘Sec. 901. Supplemental agricultural disaster assistance. 
‘‘Sec. 902. Agricultural Disaster Relief Trust Fund. 
‘‘Sec. 903. Jurisdiction.’’. 
Subtitle B—Revenue Provisions for 
Agriculture Programs 
SEC. 15201. CUSTOMS USER FEES. 
(a) IN GENERAL.—Section 13031(j)(3)(A) of the 
Consolidated Omnibus Budget Reconciliation Act of 1985 
(19 U.S.C. 58c(j)(3)(A)) is amended by striking ‘‘Decem-
ber 27, 2014’’ and inserting ‘‘November 14, 2017’’. 
(b) OTHER FEES.—Section 13031(j)(3)(B)(i) of the 
Consolidated Omnibus Budget Reconciliation Act of 1985 
(19 U.S.C. 58c(j)(3)(B)(i)) is amended by striking ‘‘De-
cember 27, 2014’’ and inserting ‘‘September 30, 2017’’. 
(c) TIME FOR REMITTING CERTAIN COBRA FEES.— 
Notwithstanding any other provision of law, any fees au-
thorized under paragraphs (1) through (8) of section 
13031(a) of the Consolidated Omnibus Budget Reconcili-
ation Act of 1985 (19 U.S.C. 58c(a) (1) through (8)) with 
respect to customs services provided on or after July 1, 
2017, and before September 20, 2017, shall be paid not 
later than September 25, 2017. 
(d) TIME FOR REMITTING CERTAIN MERCHANDISE 
PROCESSING FEES.— 
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(1) IN GENERAL.—Notwithstanding any other 
provision of law, any fees authorized under para-
graphs (9) and (10) of section 13031(a) of the Con-
solidated Omnibus Budget Reconciliation Act of 
1985 (19 U.S.C. 58c(a) (9) and (10)) with respect 
to processing merchandise entered on or after Octo-
ber 1, 2017, and before November 15, 2017, shall 
be paid not later than September 25, 2017, in an 
amount equivalent to the amount of such fees paid 
by the person responsible for such fees with respect 
to merchandise entered on or after October 1, 2016, 
and before November 15, 2016, as determined by 
the Secretary of the Treasury. 
(2) RECONCILIATION OF MERCHANDISE PROC-
ESSING FEES.—Not later than December 15, 2017, 
the Secretary of the Treasury shall reconcile the fees 
paid pursuant to paragraph (1) with the fees for 
services actually provided on or after October 1, 
2017, and before November 15, 2017, and shall re-
fund with interest any overpayment of such fees and 
make proper adjustments with respect to any under-
payment of such fees. No interest may be assessed 
with respect to any such underpayment that was 
based on the amount of fees paid for merchandise 
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entered on or after October 1, 2016, and before No-
vember 15, 2016. 
SEC. 15202. TIME FOR PAYMENT OF CORPORATE ESTI-
MATED TAXES. 
The percentage under subparagraph (B) of section 
401(1) of the Tax Increase Prevention and Reconciliation 
Act of 2005 in effect on the date of the enactment of this 
Act is increased by 7.75 percentage points. 
Subtitle C—Tax Provisions 
PART I—CONSERVATION 
Subpart A—Land and Species Preservation 
Provisions 
SEC. 15301. EXCLUSION OF CONSERVATION RESERVE PRO-
GRAM PAYMENTS FROM SECA TAX FOR CER-
TAIN INDIVIDUALS. 
(a) INTERNAL REVENUE CODE.—Section 1402(a)(1) 
(defining net earnings from self-employment) is amended 
by inserting ‘‘, and including payments under section 
1233(2) of the Food Security Act of 1985 (16 U.S.C. 
3833(2)) to individuals receiving benefits under section 
202 or 223 of the Social Security Act’’ after ‘‘crop 
shares’’. 
(b) SOCIAL SECURITY ACT.—Section 211(a)(1) of 
the Social Security Act is amended by inserting ‘‘, and 
including payments under section 1233(2) of the Food Se-
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curity Act of 1985 (16 U.S.C. 3833(2)) to individuals re-
ceiving benefits under section 202 or 223’’ after ‘‘crop 
shares’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to payments made after December 
31, 2007. 
SEC. 15302. TWO-YEAR EXTENSION OF SPECIAL RULE EN-
COURAGING CONTRIBUTIONS OF CAPITAL 
GAIN REAL PROPERTY FOR CONSERVATION 
PURPOSES. 
(a) IN GENERAL.— 
(1) 
INDIVIDUALS.—Section 
170(b)(1)(E)(vi) 
(relating to termination) is amended by striking 
‘‘December 31, 2007’’ and inserting ‘‘December 31, 
2009’’. 
(2) CORPORATIONS.—Section 170(b)(2)(B)(iii) 
(relating to termination) is amended by striking 
‘‘December 31, 2007’’ and inserting ‘‘December 31, 
2009’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to contributions made in taxable 
years beginning after December 31, 2007. 
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SEC. 15303. DEDUCTION FOR ENDANGERED SPECIES RE-
COVERY EXPENDITURES. 
(a) DEDUCTION FOR ENDANGERED SPECIES RECOV-
ERY EXPENDITURES.— 
(1) IN
GENERAL.—Paragraph (1) of section 
175(c) (relating to definitions) is amended by insert-
ing after the first sentence the following new sen-
tence: ‘‘Such term shall include expenditures paid or 
incurred for the purpose of achieving site-specific 
management actions recommended in recovery plans 
approved pursuant to the Endangered Species Act of 
1973.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 175 is amended by inserting ‘‘, 
or for endangered species recovery’’ after ‘‘pre-
vention of erosion of land used in farming’’ 
each place it appears in subsections (a) and (c). 
(B) The heading of section 175 is amended 
by inserting ‘‘; ENDANGERED SPECIES RE-
COVERY EXPENDITURES’’ before the period. 
(C) The item relating to section 175 in the 
table of sections for part VI of subchapter B of 
chapter 1 is amended by inserting ‘‘; endan-
gered species recovery expenditures’’ before the 
period. 
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(b) LIMITATIONS.—Paragraph (3) of section 175(c) 
(relating to additional limitations) is amended— 
(1) in the heading of subparagraph (A), by in-
serting ‘‘OR
ENDANGERED
SPECIES
RECOVERY 
PLAN’’ after ‘‘CONSERVATION PLAN’’, and 
(2) in subparagraph (A)(i), by inserting ‘‘or the 
recovery plan approved pursuant to the Endangered 
Species Act of 1973’’ after ‘‘Department of Agri-
culture’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenditures paid or incurred 
after December 31, 2008. 
Subpart B—Timber Provisions 
SEC. 15311. TEMPORARY REDUCTION IN RATE OF TAX ON 
QUALIFIED TIMBER GAIN OF CORPORATIONS. 
(a) IN GENERAL.—Section 1201 (relating to alter-
native tax for corporations) is amended by redesignating 
subsection (b) as subsection (c) and by adding after sub-
section (a) the following new subsection: 
‘‘(b) SPECIAL
RATE
FOR
QUALIFIED
TIMBER 
GAINS.— 
‘‘(1) IN
GENERAL.—If, for any taxable year 
ending after the date of the enactment of the Food, 
Conservation, and Energy Act of 2008 and begin-
ning on or before the date which is 1 year after such 
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date, a corporation has both a net capital gain and 
qualified timber gain— 
‘‘(A) subsection (a) shall apply to such cor-
poration for the taxable year without regard to 
whether the applicable tax rate exceeds 35 per-
cent, and 
‘‘(B) the tax computed under subsection 
(a)(2) shall be equal to the sum of— 
‘‘(i) 15 percent of the least of— 
‘‘(I) qualified timber gain, 
‘‘(II) net capital gain, or 
‘‘(III) taxable income, plus 
‘‘(ii) 35 percent of the excess (if any) 
of taxable income over the sum of the 
amounts for which a tax was determined 
under subsection (a)(1) and clause (i). 
‘‘(2) QUALIFIED TIMBER GAIN.—For purposes 
of this section, the term ‘qualified timber gain’ 
means, with respect to any taxpayer for any taxable 
year, the excess (if any) of— 
‘‘(A) the sum of the taxpayer’s gains de-
scribed in subsections (a) and (b) of section 631 
for such year, over 
‘‘(B) the sum of the taxpayer’s losses de-
scribed in such subsections for such year. 
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For purposes of subparagraphs (A) and (B), only 
timber held more than 15 years shall be taken into 
account. 
‘‘(3) COMPUTATION
FOR
TAXABLE
YEARS
IN 
WHICH RATE FIRST APPLIES OR ENDS.—In the case 
of any taxable year which includes either of the 
dates set forth in paragraph (1), the qualified timber 
gain for such year shall not exceed the qualified tim-
ber gain properly taken into account for— 
‘‘(A) in the case of the taxable year includ-
ing the date of the enactment of the Food, Con-
servation, and Energy Act of 2008, the portion 
of the year after such date, and 
‘‘(B) in the case of the taxable year includ-
ing the date which is 1 year after such date of 
enactment, the portion of the year on or before 
such later date.’’. 
(b) MINIMUM TAX.—Subsection (b) of section 55 is 
amended by adding at the end the following paragraph: 
‘‘(4) MAXIMUM RATE OF TAX ON QUALIFIED 
TIMBER GAIN OF CORPORATIONS.—In the case of 
any taxable year to which section 1201(b) applies, 
the amount determined under clause (i) of subpara-
graph (B) shall not exceed the sum of— 
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‘‘(A) 20 percent of so much of the taxable 
excess (if any) as exceeds the qualified timber 
gain (or, if less, the net capital gain), plus 
‘‘(B) 15 percent of the taxable excess in 
excess of the amount on which a tax is deter-
mined under subparagraph (A). 
Any term used in this paragraph which is also used 
in section 1201 shall have the meaning given such 
term by such section, except to the extent such term 
is subject to adjustment under this part.’’. 
(c) 
CONFORMING
AMENDMENT.—Section 
857(b)(3)(A)(ii) is amended by striking ‘‘rate’’ and insert-
ing ‘‘rates’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after the 
date of enactment. 
SEC. 15312. TIMBER REIT MODERNIZATION. 
(a) IN GENERAL.—Section 856(c)(5) is amended by 
adding after subparagraph (G) the following new subpara-
graph: 
‘‘(H) TREATMENT OF TIMBER GAINS.— 
‘‘(i) IN GENERAL.—Gain from the sale 
of real property described in paragraph 
(2)(D) and (3)(C) shall include gain which 
is— 
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‘‘(I) recognized by an election 
under section 631(a) from timber 
owned by the real estate investment 
trust, the cutting of which is provided 
by a taxable REIT subsidiary of the 
real estate investment trust; 
‘‘(II) recognized under section 
631(b); or 
‘‘(III) income which would con-
stitute gain under subclause (I) or 
(II) but for the failure to meet the 1- 
year holding period requirement. 
‘‘(ii) SPECIAL RULES.— 
‘‘(I) For purposes of this subtitle, 
cut timber, the gain from which is 
recognized by a real estate investment 
trust pursuant to an election under 
section 631(a) described in clause 
(i)(I) or so much of clause (i)(III) as 
relates to clause (i)(I), shall be 
deemed to be sold to the taxable 
REIT subsidiary of the real estate in-
vestment trust on the first day of the 
taxable year. 
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‘‘(II) For purposes of this sub-
title, income described in this sub-
paragraph shall not be treated as gain 
from the sale of property described in 
section 1221(a)(1). 
‘‘(iii) TERMINATION.—This subpara-
graph shall not apply to dispositions after 
the termination date.’’. 
(b) TERMINATION DATE.—Subsection (c) of section 
856 is amended by adding at the end the following new 
paragraph: 
‘‘(8) TERMINATION
DATE.—For purposes of 
this subsection, the term ‘termination date’ means, 
with respect to any taxpayer, the last day of the tax-
payer’s first taxable year beginning after the date of 
the enactment of this paragraph and before the date 
that is 1 year after such date of enactment.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply to dispositions in taxable years 
beginning after the date of the enactment of this Act. 
SEC. 15313. MINERAL ROYALTY INCOME QUALIFYING IN-
COME FOR TIMBER REITS. 
(a) IN GENERAL.—Section 856(c)(2) is amended by 
striking ‘‘and’’ at the end of subparagraph (G), by insert-
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ing ‘‘and’’ at the end of subparagraph (H), and by adding 
after subparagraph (H) the following new subparagraph: 
‘‘(I) mineral royalty income earned in the 
first taxable year beginning after the date of 
the enactment of this subparagraph from real 
property owned by a timber real estate invest-
ment trust and held, or once held, in connection 
with the trade or business of producing timber 
by such real estate investment trust;’’. 
(b) TIMBER REAL ESTATE INVESTMENT TRUST.— 
Section 856(c)(5), as amended by this Act, is amended 
by adding after subparagraph (H) the following new sub-
paragraph: 
‘‘(I) TIMBER REAL ESTATE INVESTMENT 
TRUST.—The term ‘timber real estate invest-
ment trust’ means a real estate investment 
trust in which more than 50 percent in value of 
its total assets consists of real property held in 
connection with the trade or business of pro-
ducing timber.’’. 
(c) EFFECTIVE DATE.—The amendments by this sec-
tion shall apply to taxable years beginning after the date 
of the enactment of this Act. 
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SEC. 15314. MODIFICATION OF TAXABLE REIT SUBSIDIARY 
ASSET TEST FOR TIMBER REITS. 
(a) 
IN
GENERAL.—Section 
856(c)(4)(B)(ii) 
is 
amended by inserting ‘‘(in the case of a quarter which 
closes on or before the termination date, 25 percent in 
the case of a timber real estate investment trust)’’ after 
‘‘REIT subsidiaries’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 15315. SAFE HARBOR FOR TIMBER PROPERTY. 
(a) IN GENERAL.—Section 857(b)(6) (relating to in-
come from prohibited transactions) is amended by adding 
at the end the following new subparagraph: 
‘‘(G) SPECIAL
RULES
FOR
SALES
TO 
QUALIFIED ORGANIZATIONS.— 
‘‘(i) IN GENERAL.—In the case of the 
sale of a real estate asset (as defined in 
section 856(c)(5)(B)) to a qualified organi-
zation (as defined in section 170(h)(3)) ex-
clusively for conservation purposes (within 
the meaning of section 170(h)(1)(C)), sub-
paragraph (D) shall be applied— 
‘‘(I) by substituting ‘2 years’ for 
‘4 years’ in clause (i), and 
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‘‘(II) by substituting ‘2-year pe-
riod’ for ‘4-year period’ in clauses (ii) 
and (iii). 
‘‘(ii) TERMINATION.—This subpara-
graph shall not apply to sales after the ter-
mination date.’’. 
(b) 
PROHIBITED
TRANSACTIONS.—Section 
857(b)(6)(D)(v) is amended by inserting ‘‘, or, in the case 
of a sale on or before the termination date, a taxable 
REIT subsidiary’’ after ‘‘any income’’. 
(c) SALES THAT ARE NOT PROHIBITED TRANS-
ACTIONS.—Section 857(b)(6), as amended by subsection 
(a), is amended by adding at the end the following new 
subparagraph: 
‘‘(H) SALES OF PROPERTY THAT ARE NOT 
A PROHIBITED TRANSACTION.—In the case of a 
sale on or before the termination date, the sale 
of property which is not a prohibited trans-
action through the application of subparagraph 
(D) shall be considered property held for invest-
ment or for use in a trade or business and not 
property described in section 1221(a)(1) for all 
purposes of this subtitle.’’. 
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(d) TERMINATION DATE.—Section 857(b)(6), as 
amended by subsections (a) and (c), is amended by adding 
at the end the following new subparagraph: 
‘‘(I) TERMINATION
DATE.—For purposes 
of this paragraph, the term ‘termination date’ 
has the meaning given such term by section 
856(c)(8).’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to dispositions in taxable years be-
ginning after the date of the enactment of this Act. 
SEC. 15316. QUALIFIED FORESTRY CONSERVATION BONDS. 
(a) IN GENERAL.—Part IV of subchapter A of chap-
ter 1 (relating to credits against tax) is amended by add-
ing at the end the following new subpart: 
‘‘Subpart I—Qualified Tax Credit Bonds 
‘‘Sec. 54A. Credit to holders of qualified tax credit bonds. 
‘‘Sec. 54B. Qualified forestry conservation bonds. 
‘‘SEC. 54A. CREDIT TO HOLDERS OF QUALIFIED TAX CRED-
IT BONDS. 
‘‘(a) ALLOWANCE OF CREDIT.—If a taxpayer holds 
a qualified tax credit bond on one or more credit allowance 
dates of the bond during any taxable year, there shall be 
allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to the sum of the 
credits determined under subsection (b) with respect to 
such dates. 
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‘‘(b) AMOUNT OF CREDIT.— 
‘‘(1) IN GENERAL.—The amount of the credit 
determined under this subsection with respect to any 
credit allowance date for a qualified tax credit bond 
is 25 percent of the annual credit determined with 
respect to such bond. 
‘‘(2) ANNUAL CREDIT.—The annual credit de-
termined with respect to any qualified tax credit 
bond is the product of— 
‘‘(A) the applicable credit rate, multiplied 
by 
‘‘(B) the outstanding face amount of the 
bond. 
‘‘(3) APPLICABLE CREDIT RATE.—For purposes 
of paragraph (2), the applicable credit rate is the 
rate which the Secretary estimates will permit the 
issuance of qualified tax credit bonds with a speci-
fied maturity or redemption date without discount 
and without interest cost to the qualified issuer. The 
applicable credit rate with respect to any qualified 
tax credit bond shall be determined as of the first 
day on which there is a binding, written contract for 
the sale or exchange of the bond. 
‘‘(4) SPECIAL RULE FOR ISSUANCE AND RE-
DEMPTION.—In the case of a bond which is issued 
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during the 3-month period ending on a credit allow-
ance date, the amount of the credit determined 
under this subsection with respect to such credit al-
lowance date shall be a ratable portion of the credit 
otherwise determined based on the portion of the 3- 
month period during which the bond is outstanding. 
A similar rule shall apply when the bond is redeemed 
or matures. 
‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.— 
‘‘(1) IN GENERAL.—The credit allowed under 
subsection (a) for any taxable year shall not exceed 
the excess of— 
‘‘(A) the sum of the regular tax liability 
(as defined in section 26(b)) plus the tax im-
posed by section 55, over 
‘‘(B) the sum of the credits allowable 
under this part (other than subpart C and this 
subpart). 
‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the 
credit allowable under subsection (a) exceeds the 
limitation imposed by paragraph (1) for such taxable 
year, such excess shall be carried to the succeeding 
taxable year and added to the credit allowable under 
subsection (a) for such taxable year (determined be-
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fore the application of paragraph (1) for such suc-
ceeding taxable year). 
‘‘(d) QUALIFIED TAX CREDIT BOND.—For purposes 
of this section— 
‘‘(1) QUALIFIED TAX CREDIT BOND.—The term 
‘qualified tax credit bond’ means a qualified forestry 
conservation bond which is part of an issue that 
meets the requirements of paragraphs (2), (3), (4), 
(5), and (6). 
‘‘(2) SPECIAL RULES RELATING TO EXPENDI-
TURES.— 
‘‘(A) IN
GENERAL.—An issue shall be 
treated as meeting the requirements of this 
paragraph if, as of the date of issuance, the 
issuer reasonably expects— 
‘‘(i) 100 percent or more of the avail-
able project proceeds to be spent for 1 or 
more qualified purposes within the 3-year 
period beginning on such date of issuance, 
and 
‘‘(ii) a binding commitment with a 
third party to spend at least 10 percent of 
such available project proceeds will be in-
curred within the 6-month period begin-
ning on such date of issuance. 
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‘‘(B) 
FAILURE
TO
SPEND
REQUIRED 
AMOUNT
OF
BOND
PROCEEDS
WITHIN
YEARS.— 
‘‘(i) IN GENERAL.—To the extent that 
less than 100 percent of the available 
project proceeds of the issue are expended 
by the close of the expenditure period for 
1 or more qualified purposes, the issuer 
shall redeem all of the nonqualified bonds 
within 90 days after the end of such pe-
riod. For purposes of this paragraph, the 
amount of the nonqualified bonds required 
to be redeemed shall be determined in the 
same manner as under section 142. 
‘‘(ii) 
EXPENDITURE
PERIOD.—For 
purposes of this subpart, the term ‘expend-
iture period’ means, with respect to any 
issue, the 3-year period beginning on the 
date of issuance. Such term shall include 
any extension of such period under clause 
(iii). 
‘‘(iii) EXTENSION OF PERIOD.—Upon 
submission of a request prior to the expira-
tion of the expenditure period (determined 
without regard to any extension under this 
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clause), the Secretary may extend such pe-
riod if the issuer establishes that the fail-
ure to expend the proceeds within the 
original expenditure period is due to rea-
sonable cause and the expenditures for 
qualified purposes will continue to proceed 
with due diligence. 
‘‘(C) QUALIFIED PURPOSE.—For purposes 
of this paragraph, the term ‘qualified purpose’ 
means a purpose specified in section 54B(e). 
‘‘(D) REIMBURSEMENT.—For purposes of 
this subtitle, available project proceeds of an 
issue shall be treated as spent for a qualified 
purpose if such proceeds are used to reimburse 
the issuer for amounts paid for a qualified pur-
pose after the date that the Secretary makes an 
allocation of bond limitation with respect to 
such issue, but only if— 
‘‘(i) prior to the payment of the origi-
nal expenditure, the issuer declared its in-
tent to reimburse such expenditure with 
the proceeds of a qualified tax credit bond, 
‘‘(ii) not later than 60 days after pay-
ment of the original expenditure, the issuer 
adopts an official intent to reimburse the 
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original expenditure with such proceeds, 
and 
‘‘(iii) the reimbursement is made not 
later than 18 months after the date the 
original expenditure is paid. 
‘‘(3) REPORTING.—An issue shall be treated as 
meeting the requirements of this paragraph if the 
issuer of qualified tax credit bonds submits reports 
similar to the reports required under section 149(e). 
‘‘(4) SPECIAL
RULES
RELATING
TO
ARBI-
TRAGE.— 
‘‘(A) IN
GENERAL.—An issue shall be 
treated as meeting the requirements of this 
paragraph if the issuer satisfies the require-
ments of section 148 with respect to the pro-
ceeds of the issue. 
‘‘(B) SPECIAL
RULE
FOR
INVESTMENTS 
DURING EXPENDITURE PERIOD.—An issue shall 
not be treated as failing to meet the require-
ments of subparagraph (A) by reason of any in-
vestment of available project proceeds during 
the expenditure period. 
‘‘(C) 
SPECIAL
RULE
FOR
RESERVE 
FUNDS.—An issue shall not be treated as fail-
ing to meet the requirements of subparagraph 
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(A) by reason of any fund which is expected to 
be used to repay such issue if— 
‘‘(i) such fund is funded at a rate not 
more rapid than equal annual installments, 
‘‘(ii) such fund is funded in a manner 
reasonably expected to result in an amount 
not greater than an amount necessary to 
repay the issue, and 
‘‘(iii) the yield on such fund is not 
greater than the discount rate determined 
under paragraph (5)(B) with respect to the 
issue. 
‘‘(5) MATURITY LIMITATION.— 
‘‘(A) IN
GENERAL.—An issue shall be 
treated as meeting the requirements of this 
paragraph if the maturity of any bond which is 
part of such issue does not exceed the max-
imum term determined by the Secretary under 
subparagraph (B). 
‘‘(B) MAXIMUM TERM.—During each cal-
endar month, the Secretary shall determine the 
maximum term permitted under this paragraph 
for bonds issued during the following calendar 
month. Such maximum term shall be the term 
which the Secretary estimates will result in the 
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present value of the obligation to repay the 
principal on the bond being equal to 50 percent 
of the face amount of such bond. Such present 
value shall be determined using as a discount 
rate the average annual interest rate of tax-ex-
empt obligations having a term of 10 years or 
more which are issued during the month. If the 
term as so determined is not a multiple of a 
whole year, such term shall be rounded to the 
next highest whole year. 
‘‘(6) PROHIBITION
ON
FINANCIAL
CONFLICTS 
OF INTEREST.—An issue shall be treated as meeting 
the requirements of this paragraph if the issuer cer-
tifies that— 
‘‘(A) applicable State and local law re-
quirements governing conflicts of interest are 
satisfied with respect to such issue, and 
‘‘(B) if the Secretary prescribes additional 
conflicts of interest rules governing the appro-
priate Members of Congress, Federal, State, 
and local officials, and their spouses, such addi-
tional rules are satisfied with respect to such 
issue. 
‘‘(e) OTHER DEFINITIONS.—For purposes of this 
subchapter— 
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‘‘(1) CREDIT
ALLOWANCE
DATE.—The term 
‘credit allowance date’ means— 
‘‘(A) March 15, 
‘‘(B) June 15, 
‘‘(C) September 15, and 
‘‘(D) December 15. 
Such term includes the last day on which the bond 
is outstanding. 
‘‘(2) BOND.—The term ‘bond’ includes any ob-
ligation. 
‘‘(3) STATE.—The term ‘State’ includes the 
District of Columbia and any possession of the 
United States. 
‘‘(4) AVAILABLE
PROJECT
PROCEEDS.—The 
term ‘available project proceeds’ means— 
‘‘(A) the excess of— 
‘‘(i) the proceeds from the sale of an 
issue, over 
‘‘(ii) the issuance costs financed by 
the issue (to the extent that such costs do 
not exceed 2 percent of such proceeds), 
and 
‘‘(B) the proceeds from any investment of 
the excess described in subparagraph (A). 
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‘‘(f) CREDIT TREATED AS INTEREST.—For purposes 
of this subtitle, the credit determined under subsection (a) 
shall be treated as interest which is includible in gross in-
come. 
‘‘(g) S CORPORATIONS AND PARTNERSHIPS.—In the 
case of a tax credit bond held by an S corporation or part-
nership, the allocation of the credit allowed by this section 
to the shareholders of such corporation or partners of such 
partnership shall be treated as a distribution. 
‘‘(h) BONDS HELD
BY REGULATED INVESTMENT 
COMPANIES AND REAL ESTATE INVESTMENT TRUSTS.— 
If any qualified tax credit bond is held by a regulated in-
vestment company or a real estate investment trust, the 
credit determined under subsection (a) shall be allowed to 
shareholders of such company or beneficiaries of such 
trust (and any gross income included under subsection (f) 
with respect to such credit shall be treated as distributed 
to such shareholders or beneficiaries) under procedures 
prescribed by the Secretary. 
‘‘(i) CREDITS MAY BE STRIPPED.—Under regula-
tions prescribed by the Secretary— 
‘‘(1) IN GENERAL.—There may be a separation 
(including at issuance) of the ownership of a quali-
fied tax credit bond and the entitlement to the credit 
under this section with respect to such bond. In case 
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of any such separation, the credit under this section 
shall be allowed to the person who on the credit al-
lowance date holds the instrument evidencing the en-
titlement to the credit and not to the holder of the 
bond. 
‘‘(2) CERTAIN RULES TO APPLY.—In the case 
of a separation described in paragraph (1), the rules 
of section 1286 shall apply to the qualified tax credit 
bond as if it were a stripped bond and to the credit 
under this section as if it were a stripped coupon. 
‘‘SEC. 54B. QUALIFIED FORESTRY CONSERVATION BONDS. 
‘‘(a) QUALIFIED FORESTRY CONSERVATION BOND.— 
For purposes of this subchapter, the term ‘qualified for-
estry conservation bond’ means any bond issued as part 
of an issue if— 
‘‘(1) 100 percent of the available project pro-
ceeds of such issue are to be used for one or more 
qualified forestry conservation purposes, 
‘‘(2) the bond is issued by a qualified issuer, 
and 
‘‘(3) the issuer designates such bond for pur-
poses of this section. 
‘‘(b) LIMITATION
ON AMOUNT
OF BONDS DES-
IGNATED.—The maximum aggregate face amount of 
bonds which may be designated under subsection (a) by 
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any issuer shall not exceed the limitation amount allocated 
to such issuer under subsection (d). 
‘‘(c) NATIONAL LIMITATION ON AMOUNT OF BONDS 
DESIGNATED.—There is a national qualified forestry con-
servation bond limitation of $500,000,000. 
‘‘(d) ALLOCATIONS.— 
‘‘(1) IN GENERAL.—The Secretary shall make 
allocations of the amount of the national qualified 
forestry conservation bond limitation described in 
subsection (c) among qualified forestry conservation 
purposes in such manner as the Secretary deter-
mines appropriate so as to ensure that all of such 
limitation is allocated before the date which is 24 
months after the date of the enactment of this sec-
tion. 
‘‘(2) SOLICITATION
OF
APPLICATIONS.—The 
Secretary shall solicit applications for allocations of 
the national qualified forestry conservation bond lim-
itation described in subsection (c) not later than 90 
days after the date of the enactment of this section. 
‘‘(e) QUALIFIED FORESTRY CONSERVATION PUR-
POSE.—For purposes of this section, the term ‘qualified 
forestry conservation purpose’ means the acquisition by a 
State or any political subdivision or instrumentality there-
of or a 501(c)(3) organization (as defined in section 
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150(a)(4)) from an unrelated person of forest and forest 
land that meets the following qualifications: 
‘‘(1) Some portion of the land acquired must be 
adjacent to United States Forest Service Land. 
‘‘(2) At least half of the land acquired must be 
transferred to the United States Forest Service at 
no net cost to the United States and not more than 
half of the land acquired may either remain with or 
be conveyed to a State. 
‘‘(3) All of the land must be subject to a native 
fish habitat conservation plan approved by the 
United States Fish and Wildlife Service. 
‘‘(4) The amount of acreage acquired must be 
at least 40,000 acres. 
‘‘(f) QUALIFIED ISSUER.—For purposes of this sec-
tion, the term ‘qualified issuer’ means a State or any polit-
ical subdivision or instrumentality thereof or a 501(c)(3) 
organization (as defined in section 150(a)(4)). 
‘‘(g) SPECIAL ARBITRAGE RULE.—In the case of any 
qualified forestry conservation bond issued as part of an 
issue, section 54A(d)(4)(C) shall be applied to such issue 
without regard to clause (i). 
‘‘(h) ELECTION TO TREAT 50 PERCENT OF BOND 
ALLOCATION AS PAYMENT OF TAX.— 
‘‘(1) IN GENERAL.—If— 
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‘‘(A) a qualified issuer receives an alloca-
tion of any portion of the national qualified for-
estry conservation bond limitation described in 
subsection (c), and 
‘‘(B) the qualified issuer elects the applica-
tion of this subsection with respect to such allo-
cation, 
then the qualified issuer (without regard to whether 
the issuer is subject to tax under this chapter) shall 
be treated as having made a payment against the 
tax imposed by this chapter, for the taxable year 
preceding the taxable year in which the allocation is 
received, in an amount equal to 50 percent of the 
amount of such allocation. 
‘‘(2) TREATMENT OF DEEMED PAYMENT.— 
‘‘(A) IN GENERAL.—Notwithstanding any 
other provision of this title, the Secretary shall 
not use the payment of tax described in para-
graph (1) as an offset or credit against any tax 
liability of the qualified issuer but shall refund 
such payment to such issuer. 
‘‘(B) NO INTEREST.—Except as provided 
in paragraph (3)(A), the payment described in 
paragraph (1) shall not be taken into account 
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in determining any amount of interest under 
this title. 
‘‘(3) REQUIREMENT
FOR, AND
EFFECT
OF, 
ELECTION.— 
‘‘(A) REQUIREMENT.—No election under 
this subsection shall take effect unless the 
qualified issuer certifies to the Secretary that 
any payment of tax refunded to the issuer 
under this subsection will be used exclusively 
for 1 or more qualified forestry conservation 
purposes. If the qualified issuer fails to use any 
portion of such payment for such purpose, the 
issuer shall be liable to the United States in an 
amount equal to such portion, plus interest at 
the overpayment rate under section 6621 for 
the period from the date such portion was re-
funded to the date such amount is paid. Any 
such amount shall be assessed and collected in 
the same manner as tax imposed by this chap-
ter, except that subchapter B of chapter 63 (re-
lating to deficiency procedures) shall not apply 
in respect of such assessment or collection. 
‘‘(B) EFFECT OF ELECTION ON ALLOCA-
TION.—If a qualified issuer makes the election 
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under this subsection with respect to any alloca-
tion— 
‘‘(i) the issuer may issue no bonds 
pursuant to the allocation, and 
‘‘(ii) the Secretary may not reallocate 
such allocation for any other purpose.’’. 
(b) REPORTING.—Subsection (d) of section 6049 (re-
lating to returns regarding payments of interest) is 
amended by adding at the end the following new para-
graph: 
‘‘(9) REPORTING
OF
CREDIT
ON
QUALIFIED 
TAX CREDIT BONDS.— 
‘‘(A) IN GENERAL.—For purposes of sub-
section (a), the term ‘interest’ includes amounts 
includible in gross income under section 54A 
and such amounts shall be treated as paid on 
the credit allowance date (as defined in section 
54A(e)(1)). 
‘‘(B) 
REPORTING
TO
CORPORATIONS, 
ETC.—Except as otherwise provided in regula-
tions, in the case of any interest described in 
subparagraph (A) of this paragraph, subsection 
(b)(4) of this section shall be applied without 
regard to subparagraphs (A), (H), (I), (J), (K), 
and (L)(i). 
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a mixture of cellulosic biofuel and gasoline or of 
cellulosic biofuel and a special fuel which— 
‘‘(i) is sold by the person producing 
such mixture to any person for use as a 
fuel, or 
‘‘(ii) is used as a fuel by the person 
producing such mixture. 
‘‘(E) CELLULOSIC
BIOFUEL.—For pur-
poses of this paragraph— 
‘‘(i) IN
GENERAL.—The term ‘cel-
lulosic biofuel’ means any liquid fuel 
which— 
‘‘(I) 
is 
produced 
from 
any 
lignocellulosic or hemicellulosic matter 
that is available on a renewable or re-
curring basis, and 
‘‘(II) meets the registration re-
quirements for fuels and fuel additives 
established by the Environmental Pro-
tection Agency under section 211 of 
the Clean Air Act (42 U.S.C. 7545). 
‘‘(ii) EXCLUSION OF LOW-PROOF AL-
COHOL.—Such term shall not include any 
alcohol with a proof of less than 150. The 
determination of the proof of any alcohol 
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shall be made without regard to any added 
denaturants. 
‘‘(F) 
ALLOCATION
OF
CELLULOSIC 
BIOFUEL PRODUCER CREDIT TO PATRONS OF 
COOPERATIVE.—Rules similar to the rules 
under subsection (g)(6) shall apply for purposes 
of this paragraph. 
‘‘(G) REGISTRATION
REQUIREMENT.—No 
credit shall be determined under this paragraph 
with respect to any taxpayer unless such tax-
payer is registered with the Secretary as a pro-
ducer of cellulosic biofuel under section 4101. 
‘‘(H) APPLICATION OF PARAGRAPH.—This 
paragraph shall apply with respect to qualified 
cellulosic biofuel production after December 31, 
2008, and before January 1, 2013.’’. 
(2) TERMINATION DATE NOT TO APPLY.—Sub-
section (e) of section 40 (relating to termination) is 
amended— 
(A) by inserting ‘‘or subsection (b)(6)(H)’’ 
after ‘‘by reason of paragraph (1)’’ in para-
graph (2), and 
(B) by adding at the end the following new 
paragraph: 
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‘‘(3) EXCEPTION
FOR
CELLULOSIC
BIOFUEL 
PRODUCER CREDIT.—Paragraph (1) shall not apply 
to the portion of the credit allowed under this sec-
tion by reason of subsection (a)(4).’’. 
(3) CONFORMING AMENDMENTS.— 
(A) Paragraph (1) of section 4101(a) is 
amended— 
(i) by striking ‘‘and every person’’ and 
inserting ‘‘, every person’’, and 
(ii) by inserting ‘‘, and every person 
producing cellulosic biofuel (as defined in 
section 
40(b)(6)(E))’’ 
after 
‘‘section 
6426(b)(4)(A))’’. 
(B) The heading of section 40, and the 
item relating to such section in the table of sec-
tions for subpart D of part IV of subchapter A 
of chapter 1, are each amended by inserting ‘‘, 
etc.,’’ after ‘‘Alcohol’’. 
(c) BIOFUEL NOT USED AS A FUEL, ETC.— 
(1) IN
GENERAL.—Paragraph (3) of section 
40(d) is amended by redesignating subparagraph 
(D) as subparagraph (E) and by inserting after sub-
paragraph (C) the following new subparagraph: 
‘‘(D) CELLULOSIC
BIOFUEL
PRODUCER 
CREDIT.—If— 
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‘‘(i) any credit is allowed under sub-
section (a)(4), and 
‘‘(ii) any person does not use such 
fuel for a purpose described in subsection 
(b)(6)(C), 
then there is hereby imposed on such person a 
tax equal to the applicable amount (as defined 
in subsection (b)(6)(B)) for each gallon of such 
cellulosic biofuel.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Subparagraph (C) of section 40(d)(3) 
is amended by striking ‘‘PRODUCER’’ in the 
heading and inserting ‘‘SMALL ETHANOL PRO-
DUCER’’. 
(B) Subparagraph (E) of section 40(d)(3), 
as redesignated by paragraph (1), is amended 
by striking ‘‘or (C)’’ and inserting ‘‘(C), or 
(D)’’. 
(d) BIOFUEL PRODUCED IN THE UNITED STATES.— 
Section 40(d) is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(6) SPECIAL RULE FOR CELLULOSIC BIOFUEL 
PRODUCER CREDIT.—No cellulosic biofuel producer 
credit shall be determined under subsection (a) with 
respect to any cellulosic biofuel unless such cellulosic 
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biofuel is produced in the United States and used as 
a fuel in the United States. For purposes of this 
subsection, the term ‘United States’ includes any 
possession of the United States.’’. 
(e) WAIVER
OF CREDIT LIMIT
FOR CELLULOSIC 
BIOFUEL
PRODUCTION
BY
SMALL
ETHANOL
PRO-
DUCERS.—Section 40(b)(4)(C) is amended by inserting 
‘‘(determined without regard to any qualified cellulosic 
biofuel production)’’ after ‘‘15,000,000 gallons’’. 
(f) DENIAL OF DOUBLE BENEFIT.— 
(1) BIODIESEL.—Paragraph (1) of section 
40A(d) is amended by adding at the end the fol-
lowing new flush sentence: 
‘‘Such term shall not include any liquid with respect 
to which a credit may be determined under section 
40.’’. 
(2) RENEWABLE
DIESEL.—Paragraph (3) of 
section 40A(f) is amended by adding at the end the 
following new flush sentence: 
‘‘Such term shall not include any liquid with respect 
to which a credit may be determined under section 
40.’’. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to fuel produced after December 
31, 2008. 
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SEC. 15322. COMPREHENSIVE STUDY OF BIOFUELS. 
(a) STUDY.—The Secretary of the Treasury, in con-
sultation with the Secretary of Agriculture, the Secretary 
of Energy, and the Administrator of the Environmental 
Protection Agency, shall enter into an agreement with the 
National Academy of Sciences to produce an analysis of 
current scientific findings to determine— 
(1) current biofuels production, as well as pro-
jections for future production, 
(2) the maximum amount of biofuels production 
capable in United States forests and farmlands, in-
cluding the current quantities and character of the 
feedstocks and including such information as re-
gional forest inventories that are commercially avail-
able, used in the production of biofuels, 
(3) the domestic effects of an increase in 
biofuels production levels, including the effects of 
such levels on— 
(A) the price of fuel, 
(B) the price of land in rural and subur-
ban communities, 
(C) crop acreage, forest acreage, and other 
land use, 
(D) the environment, due to changes in 
crop acreage, fertilizer use, runoff, water use, 
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emissions from vehicles utilizing biofuels, and 
other factors, 
(E) the price of feed, 
(F) the selling price of grain crops and for-
est products, 
(G) exports and imports of grains and for-
est products, 
(H) taxpayers, through cost or savings to 
commodity crop payments, and 
(I) the expansion of refinery capacity, 
(4) the ability to convert corn ethanol plants for 
other uses, such as cellulosic ethanol or biodiesel, 
(5) a comparative analysis of corn ethanol 
versus other biofuels and renewable energy sources, 
considering cost, energy output, and ease of imple-
mentation, 
(6) the impact of the tax credit established by 
this subpart on the regional agricultural and silvicul-
tural capabilities of commercially available forest in-
ventories, and 
(7) the need for additional scientific inquiry, 
and specific areas of interest for future research. 
(b) REPORT.—The Secretary of the Treasury shall 
submit an initial report of the findings of the study re-
quired under subsection (a) to Congress not later than 6 
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months after the date of the enactment of this Act (36 
months after such date in the case of the information re-
quired by subsection (a)(6)), and a final report not later 
than 12 months after such date (42 months after such 
date in the case of the information required by subsection 
(a)(6)). 
Subpart B—Revenue Provisions 
SEC. 15331. MODIFICATION OF ALCOHOL CREDIT. 
(a) INCOME TAX CREDIT.— 
(1) IN GENERAL.—The table in paragraph (2) 
of section 40(h) is amended— 
(A) by striking ‘‘through 2010’’ in the first 
column and inserting ‘‘, 2006, 2007, or 2008’’, 
(B) by striking the period at the end of the 
third row, and 
(C) by adding at the end the following new 
row: 
‘‘2009 through 2010 ......
45 cents .........................
33.33 cents.’’. 
(2) EXCEPTION.—Section 40(h) is amended by 
adding at the end the following new paragraph: 
‘‘(3) REDUCTION
DELAYED
UNTIL
ANNUAL 
PRODUCTION OR IMPORTATION OF 7,500,000,000 GAL-
LONS.— 
‘‘(A) IN GENERAL.—In the case of any cal-
endar year beginning after 2008, if the Sec-
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retary makes a determination described in sub-
paragraph (B) with respect to all preceding cal-
endar years beginning after 2007, the last row 
in the table in paragraph (2) shall be applied 
by substituting ‘51 cents’ for ‘45 cents’. 
‘‘(B) DETERMINATION.—A determination 
described in this subparagraph with respect to 
any calendar year is a determination, in con-
sultation with the Administrator of the Envi-
ronmental Protection Agency, that an amount 
less than 7,500,000,000 gallons of ethanol (in-
cluding cellulosic ethanol) has been produced in 
or imported into the United States in such 
year.’’. 
(b) EXCISE TAX CREDIT.— 
(1) IN GENERAL.—Subparagraph (A) of section 
6426(b)(2) (relating to alcohol fuel mixture credit) 
is amended by striking ‘‘the applicable amount is 51 
cents’’ and inserting ‘‘the applicable amount is— 
‘‘(i) in the case of calendar years be-
ginning before 2009, 51 cents, and 
‘‘(ii) in the case of calendar years be-
ginning after 2008, 45 cents.’’. 
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(2) EXCEPTION.—Paragraph (2) of section 
6426(b) is amended by adding at the end the fol-
lowing new subparagraph: 
‘‘(C) REDUCTION DELAYED UNTIL ANNUAL 
PRODUCTION OR IMPORTATION OF 7,500,000,000 
GALLONS.—In the case of any calendar year be-
ginning after 2008, if the Secretary makes a 
determination described in section 40(h)(3)(B) 
with respect to all preceding calendar years be-
ginning after 2007, subparagraph (A)(ii) shall 
be applied by substituting ‘51 cents’ for ‘45 
cents’.’’ 
(3) CONFORMING AMENDMENT.—Subparagraph 
(A) of section 6426(b)(2) is amended by striking 
‘‘subparagraph (B)’’ and inserting ‘‘subparagraphs 
(B) and (C)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
SEC. 15332. CALCULATION OF VOLUME OF ALCOHOL FOR 
FUEL CREDITS. 
(a) IN GENERAL.—Paragraph (4) of section 40(d) 
(relating to volume of alcohol) is amended by striking ‘‘5 
percent’’ and inserting ‘‘2 percent’’. 
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(b) CONFORMING AMENDMENT
FOR EXCISE TAX 
CREDIT.—Section 6426(b) (relating to alcohol fuel mix-
ture credit) is amended by redesignating paragraph (5) 
as paragraph (6) and by inserting after paragraph (4) the 
following new paragraph: 
‘‘(5) VOLUME OF ALCOHOL.—For purposes of 
determining under subsection (a) the number of gal-
lons of alcohol with respect to which a credit is al-
lowable under subsection (a), the volume of alcohol 
shall include the volume of any denaturant (includ-
ing gasoline) which is added under any formulas ap-
proved by the Secretary to the extent that such de-
naturants do not exceed 2 percent of the volume of 
such alcohol (including denaturants).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to fuel sold or used after December 
31, 2008. 
SEC. 15333. ETHANOL TARIFF EXTENSION. 
Headings 9901.00.50 and 9901.00.52 of the Har-
monized Tariff Schedule of the United States are each 
amended in the effective period column by striking ‘‘1/1/ 
2009’’ and inserting ‘‘1/1/2011’’. 
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SEC. 15334. LIMITATIONS ON DUTY DRAWBACK ON CERTAIN 
IMPORTED ETHANOL. 
(a) IN GENERAL.—Section 313(p) of the Tariff Act 
of 1930 (19 U.S.C. 1313(p)) is amended by adding at the 
end the following new paragraph: 
‘‘(5) SPECIAL RULES FOR ETHYL ALCOHOL.— 
For purposes of this subsection, any duty paid under 
subheading 9901.00.50 of the Harmonized Tariff 
Schedule of the United States on imports of ethyl al-
cohol or a mixture of ethyl alcohol may not be re-
funded if the exported article upon which a draw-
back claim is based does not contain ethyl alcohol or 
a mixture of ethyl alcohol.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section applies with respect to— 
(1) imports of ethyl alcohol or a mixture of 
ethyl alcohol entered for consumption, or withdrawn 
from warehouse for consumption, on or after Octo-
ber 1, 2008; and 
(2) imports of ethyl alcohol or a mixture of 
ethyl alcohol entered for consumption, or withdrawn 
from warehouse for consumption, before October 1, 
2008, if a duty drawback claim is filed with respect 
to such imports on or after October 1, 2010. 
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PART III—AGRICULTURAL PROVISIONS 
SEC. 15341. INCREASE IN LOAN LIMITS ON AGRICULTURAL 
BONDS. 
(a) IN GENERAL.—Subparagraph (A) of section 
147(c)(2) (relating to exception for first-time farmers) is 
amended 
by 
striking 
‘‘$250,000’’ 
and 
inserting 
‘‘$450,000’’. 
(b) INFLATION ADJUSTMENT.—Section 147(c)(2) is 
amended by adding at the end the following new subpara-
graph: 
‘‘(H) ADJUSTMENTS FOR INFLATION.—In 
the case of any calendar year after 2008, the 
dollar amount in subparagraph (A) shall be in-
creased by an amount equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year, determined by substituting 
‘calendar year 2007’ for ‘calendar year 
1992’ in subparagraph (B) thereof. 
If any amount as increased under the preceding 
sentence is not a multiple of $100, such amount 
shall be rounded to the nearest multiple of 
$100.’’. 
(c) MODIFICATION
OF
SUBSTANTIAL
FARMLAND 
DEFINITION.—Section 147(c)(2)(E) (defining substantial 
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farmland) is amended by striking ‘‘unless’’ and all that 
follows through the period and inserting ‘‘unless such par-
cel is smaller than 30 percent of the median size of a farm 
in the county in which such parcel is located.’’. 
(d) 
CONFORMING
AMENDMENT.—Section 
147(c)(2)(C)(i)(II) is amended by striking ‘‘$250,000’’ 
and inserting ‘‘the amount in effect under subparagraph 
(A)’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to bonds issued after the date of 
the enactment of this Act. 
SEC. 15342. ALLOWANCE OF SECTION 1031 TREATMENT FOR 
EXCHANGES INVOLVING CERTAIN MUTUAL 
DITCH, RESERVOIR, OR IRRIGATION COM-
PANY STOCK. 
(a) IN GENERAL.—Section 1031 (relating to ex-
change of property held for productive use or investment) 
is amended by adding at the end the following new sub-
section: 
‘‘(i) SPECIAL RULES
FOR MUTUAL DITCH, RES-
ERVOIR, OR IRRIGATION COMPANY STOCK.—For purposes 
of subsection (a)(2)(B), the term ‘stocks’ shall not include 
shares in a mutual ditch, reservoir, or irrigation company 
if at the time of the exchange— 
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‘‘(1) the mutual ditch, reservoir, or irrigation 
company is an organization described in section 
501(c)(12)(A) (determined without regard to the 
percentage of its income that is collected from its 
members for the purpose of meeting losses and ex-
penses), and 
‘‘(2) the shares in such company have been rec-
ognized by the highest court of the State in which 
such company was organized or by applicable State 
statute as constituting or representing real property 
or an interest in real property.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to exchanges completed after the 
date of the enactment of this Act. 
SEC. 15343. AGRICULTURAL CHEMICALS SECURITY CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 (relating to business related cred-
its) is amended by adding at the end the following new 
section: 
‘‘SEC. 45O. AGRICULTURAL CHEMICALS SECURITY CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 38, in 
the case of an eligible agricultural business, the agricul-
tural chemicals security credit determined under this sec-
tion for the taxable year is 30 percent of the qualified se-
curity expenditures for the taxable year. 
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‘‘(b) FACILITY LIMITATION.—The amount of the 
credit determined under subsection (a) with respect to any 
facility for any taxable year shall not exceed— 
‘‘(1) $100,000, reduced by 
‘‘(2) the aggregate amount of credits deter-
mined under subsection (a) with respect to such fa-
cility for the 5 prior taxable years. 
‘‘(c) ANNUAL LIMITATION.—The amount of the cred-
it determined under subsection (a) with respect to any tax-
payer for any taxable year shall not exceed $2,000,000. 
‘‘(d) QUALIFIED CHEMICAL SECURITY EXPENDI-
TURE.—For purposes of this section, the term ‘qualified 
chemical security expenditure’ means, with respect to any 
eligible agricultural business for any taxable year, any 
amount paid or incurred by such business during such tax-
able year for— 
‘‘(1) employee security training and background 
checks, 
‘‘(2) limitation and prevention of access to con-
trols of specified agricultural chemicals stored at the 
facility, 
‘‘(3) tagging, locking tank valves, and chemical 
additives to prevent the theft of specified agricul-
tural chemicals or to render such chemicals unfit for 
illegal use, 
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‘‘(4) protection of the perimeter of specified ag-
ricultural chemicals, 
‘‘(5) installation of security lighting, cameras, 
recording equipment, and intrusion detection sen-
sors, 
‘‘(6) implementation of measures to increase 
computer or computer network security, 
‘‘(7) conducting a security vulnerability assess-
ment, 
‘‘(8) implementing a site security plan, and 
‘‘(9) such other measures for the protection of 
specified agricultural chemicals as the Secretary may 
identify in regulation. 
Amounts described in the preceding sentence shall be 
taken into account only to the extent that such amounts 
are paid or incurred for the purpose of protecting specified 
agricultural chemicals. 
‘‘(e) ELIGIBLE AGRICULTURAL BUSINESS.—For pur-
poses of this section, the term ‘eligible agricultural busi-
ness’ means any person in the trade or business of— 
‘‘(1) selling agricultural products, including 
specified agricultural chemicals, at retail predomi-
nantly to farmers and ranchers, or 
‘‘(2) manufacturing, formulating, distributing, 
or aerially applying specified agricultural chemicals. 
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‘‘(f) SPECIFIED AGRICULTURAL CHEMICAL.—For 
purposes of this section, the term ‘specified agricultural 
chemical’ means— 
‘‘(1) any fertilizer commonly used in agricul-
tural operations which is listed under— 
‘‘(A) section 302(a)(2) of the Emergency 
Planning and Community Right-to-Know Act of 
1986, 
‘‘(B) section 101 of part 172 of title 49, 
Code of Federal Regulations, or 
‘‘(C) part 126, 127, or 154 of title 33, 
Code of Federal Regulations, and 
‘‘(2) any pesticide (as defined in section 2(u) of 
the Federal Insecticide, Fungicide, and Rodenticide 
Act), including all active and inert ingredients there-
of, which is customarily used on crops grown for 
food, feed, or fiber. 
‘‘(g) CONTROLLED GROUPS.—Rules similar to the 
rules of paragraphs (1) and (2) of section 41(f) shall apply 
for purposes of this section. 
‘‘(h) REGULATIONS.—The Secretary may prescribe 
such regulations as may be necessary or appropriate to 
carry out the purposes of this section, including regula-
tions which— 
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‘‘(1) provide for the proper treatment of 
amounts which are paid or incurred for purpose of 
protecting any specified agricultural chemical and 
for other purposes, and 
‘‘(2) provide for the treatment of related prop-
erties as one facility for purposes of subsection (b). 
‘‘(i) TERMINATION.—This section shall not apply to 
any amount paid or incurred after December 31, 2012.’’. 
(b) CREDIT ALLOWED AS PART OF GENERAL BUSI-
NESS CREDIT.—Section 38(b) is amended by striking 
‘‘plus’’ at the end of paragraph (30), by striking the period 
at the end of paragraph (31) and inserting ‘‘, plus’’, and 
by adding at the end the following new paragraph: 
‘‘(32) in the case of an eligible agricultural 
business (as defined in section 45O(e)), the agricul-
tural chemicals security credit determined under sec-
tion 45O(a).’’. 
(c) DENIAL OF DOUBLE BENEFIT.—Section 280C is 
amended by adding at the end the following new sub-
section: 
‘‘(f) CREDIT
FOR SECURITY
OF AGRICULTURAL 
CHEMICALS.—No deduction shall be allowed for that por-
tion of the expenses otherwise allowable as a deduction 
taken into account in determining the credit under section 
45O for the taxable year which is equal to the amount 
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of the credit determined for such taxable year under sec-
tion 45O(a).’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
is amended by adding at the end the following new item: 
‘‘Sec. 45O. Agricultural chemicals security credit.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred after 
the date of the enactment of this Act. 
SEC. 15344. 3-YEAR DEPRECIATION FOR RACE HORSES 
THAT ARE 2-YEARS OLD OR YOUNGER. 
(a) IN GENERAL.—Clause (i) of section 168(e)(3)(A) 
(relating to 3-year property) is amended to read as follows: 
‘‘(i) any race horse— 
‘‘(I) which is placed in service be-
fore January 1, 2014, and 
‘‘(II) which is placed in service 
after December 31, 2013, and which 
is more than 2 years old at the time 
such horse is placed in service by such 
purchaser,’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to property placed in service after 
December 31, 2008. 
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SEC. 15345. TEMPORARY TAX RELIEF FOR KIOWA COUNTY, 
KANSAS AND SURROUNDING AREA. 
(a) IN GENERAL.—Subject to the modifications de-
scribed in this section, the following provisions of or relat-
ing to the Internal Revenue Code of 1986 shall apply to 
the Kansas disaster area in addition to the areas to which 
such provisions otherwise apply: 
(1) Section 1400N(d) of such Code (relating to 
special allowance for certain property). 
(2) Section 1400N(e) of such Code (relating to 
increase in expensing under section 179). 
(3) Section 1400N(f) of such Code (relating to 
expensing for certain demolition and clean-up costs). 
(4) Section 1400N(k) of such Code (relating to 
treatment of net operating losses attributable to 
storm losses). 
(5) Section 1400N(n) of such Code (relating to 
treatment of representations regarding income eligi-
bility for purposes of qualified rental project require-
ments). 
(6) Section 1400N(o) of such Code (relating to 
treatment of public utility property disaster losses). 
(7) Section 1400Q of such Code (relating to 
special rules for use of retirement funds). 
(8) Section 1400R(a) of such Code (relating to 
employee retention credit for employers). 
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(9) Section 1400S(b) of such Code (relating to 
suspension of certain limitations on personal cas-
ualty losses). 
(10) Section 405 of the Katrina Emergency 
Tax Relief Act of 2005 (relating to extension of re-
placement period for nonrecognition of gain). 
(b) KANSAS DISASTER AREA.—For purposes of this 
section, the term ‘‘Kansas disaster area’’ means an area 
with respect to which a major disaster has been declared 
by the President under section 401 of the Robert T. Staf-
ford Disaster Relief and Emergency Assistance Act 
(FEMA–1699–DR, as in effect on the date of the enact-
ment of this Act) by reason of severe storms and tornados 
beginning on May 4, 2007, and determined by the Presi-
dent to warrant individual or individual and public assist-
ance from the Federal Government under such Act with 
respect to damages attributable to such storms and tor-
nados. 
(c) REFERENCES TO AREA OR LOSS.— 
(1) AREA.—Any reference in such provisions to 
the Katrina disaster area or the Gulf Opportunity 
Zone shall be treated as a reference to the Kansas 
disaster area. 
(2) LOSS.—Any reference in such provisions to 
any loss or damage attributable to Hurricane 
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Katrina shall be treated as a reference to any loss 
or damage attributable to the May 4, 2007, storms 
and tornados. 
(d) REFERENCES TO DATES, ETC.— 
(1) SPECIAL ALLOWANCE FOR CERTAIN PROP-
ERTY ACQUIRED ON OR AFTER MAY 5, 2007.—Section 
1400N(d) of such Code— 
(A) by substituting ‘‘qualified Recovery As-
sistance property’’ for ‘‘qualified Gulf Oppor-
tunity Zone property’’ each place it appears, 
(B) by substituting ‘‘May 5, 2007’’ for 
‘‘August 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 
‘‘August 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. 
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(2) INCREASE IN EXPENSING UNDER SECTION 
179.—Section 1400N(e) of such Code, by sub-
stituting ‘‘qualified section 179 Recovery Assistance 
property’’ for ‘‘qualified section 179 Gulf Oppor-
tunity Zone property’’ each place it appears. 
(3) 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 
‘‘beginning on August 28, 2005, and ending on 
December 31, 2007’’ in paragraph (2) thereof. 
(4) TREATMENT OF NET OPERATING LOSSES 
ATTRIBUTABLE
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 Au-
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(D) disregarding clauses (ii) and (iii) of 
subsection (a)(4)(A), 
(E) by substituting ‘‘qualified storm dis-
tribution’’ for ‘‘qualified Katrina distribution’’ 
each place it appears, 
(F) 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), 
(G) by substituting ‘‘the Kansas disaster 
area (as defined in section 15345(b) of the 
Food, Conservation, and Energy Act of 2008) 
but which was not so purchased or constructed 
on account of the May 4, 2007, storms and tor-
nados’’ for ‘‘the Hurricane Katrina disaster 
area, but not so purchased or constructed on 
account of Hurricane Katrina’’ in subsection 
(b)(2)(B)(iii), 
(H) by substituting ‘‘beginning on May 4, 
2007, and ending on the date which is 5 
months after the date of the enactment of the 
Heartland, Habitat, Harvest, and Horticulture 
Act of 2008’’ for ‘‘beginning on August 25, 
2005, and ending on February 28, 2006’’ in 
subsection (b)(3)(A), 
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(C) only with respect to eligible employers 
who employed an average of not more than 200 
employees on business days during the taxable 
year before May 4, 2007. 
(7) SUSPENSION OF CERTAIN LIMITATIONS ON 
PERSONAL CASUALTY LOSSES.—Section 1400S(b)(1) 
of the Internal Revenue Code of 1986, by sub-
stituting ‘‘May 4, 2007’’ for ‘‘August 25, 2005’’. 
(8) EXTENSION OF REPLACEMENT PERIOD FOR 
NONRECOGNITION
OF
GAIN.—Section 405 of the 
Katrina Emergency Tax Relief Act of 2005, by sub-
stituting ‘‘on or after May 4, 2007’’ for ‘‘on or after 
August 25, 2005’’. 
SEC. 15346. COMPETITIVE CERTIFICATION AWARDS MODI-
FICATION AUTHORITY. 
(a) IN GENERAL.—Section 48A (relating to quali-
fying advanced coal project credit) is amended by adding 
at the end the following new subsection: 
‘‘(h) COMPETITIVE CERTIFICATION AWARDS MODI-
FICATION AUTHORITY.—In implementing this section or 
section 48B, the Secretary is directed to modify the terms 
of any competitive certification award and any associated 
closing agreement where such modification— 
‘‘(1) is consistent with the objectives of such 
section, 
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‘‘(2) is requested by the recipient of the com-
petitive certification award, and 
‘‘(3) involves moving the project site to improve 
the potential to capture and sequester carbon dioxide 
emissions, reduce costs of transporting feedstock, 
and serve a broader customer base, 
unless the Secretary determines that the dollar amount 
of tax credits available to the taxpayer under such section 
would increase as a result of the modification or such 
modification would result in such project not being origi-
nally certified. In considering any such modification, the 
Secretary shall consult with other relevant Federal agen-
cies, including the Department of Energy.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on the date of the enactment 
of this Act and is applicable to all competitive certification 
awards entered into under section 48A or 48B of the In-
ternal Revenue Code of 1986, whether such awards were 
issued before, on, or after such date of enactment. 
PART IV—OTHER REVENUE PROVISIONS 
SEC. 15351. LIMITATION ON EXCESS FARM LOSSES OF CER-
TAIN TAXPAYERS. 
(a) IN GENERAL.—Section 461 (relating to general 
rule for taxable year of deduction) is amended by adding 
at the end the following new subsection: 
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‘‘(j) LIMITATION ON EXCESS FARM LOSSES OF CER-
TAIN TAXPAYERS.— 
‘‘(1) LIMITATION.—If a taxpayer other than a 
C corporation receives any applicable subsidy for any 
taxable year, any excess farm loss of the taxpayer 
for the taxable year shall not be allowed. 
‘‘(2) DISALLOWED
LOSS
CARRIED
TO
NEXT 
TAXABLE YEAR.—Any loss which is disallowed under 
paragraph (1) shall be treated as a deduction of the 
taxpayer attributable to farming businesses in the 
next taxable year. 
‘‘(3) APPLICABLE SUBSIDY.—For purposes of 
this subsection, the term ‘applicable subsidy’ 
means— 
‘‘(A) any direct or counter-cyclical pay-
ment under title I of the Food, Conservation, 
and Energy Act of 2008, or any payment elect-
ed to be received in lieu of any such payment, 
or 
‘‘(B) any Commodity Credit Corporation 
loan. 
‘‘(4) EXCESS FARM LOSS.—For purposes of this 
subsection— 
‘‘(A) IN GENERAL.—The term ‘excess farm 
loss’ means the excess of— 
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‘‘(i) the aggregate deductions of the 
taxpayer for the taxable year which are at-
tributable to farming businesses of such 
taxpayer (determined without regard to 
whether or not such deductions are dis-
allowed for such taxable year under para-
graph (1)), over 
‘‘(ii) the sum of— 
‘‘(I) the aggregate gross income 
or gain of such taxpayer for the tax-
able year which is attributable to such 
farming businesses, plus 
‘‘(II) the threshold amount for 
the taxable year. 
‘‘(B) THRESHOLD AMOUNT.— 
‘‘(i) IN GENERAL.—The term ‘thresh-
old amount’ means, with respect to any 
taxable year, the greater of— 
‘‘(I) $300,000 ($150,000 in the 
case of married individuals filing sepa-
rately), or 
‘‘(II) the excess (if any) of the 
aggregate amounts described in sub-
paragraph (A)(ii)(I) for the 5-con-
secutive taxable year period preceding 
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the taxable year over the aggregate 
amounts described in subparagraph 
(A)(i) for such period. 
‘‘(ii) SPECIAL
RULES
FOR
DETER-
MINING AGGREGATE AMOUNTS.—For pur-
poses of clause (i)(II)— 
‘‘(I) notwithstanding the dis-
regard in subparagraph (A)(i) of any 
disallowance under paragraph (1), in 
the case of any loss which is carried 
forward under paragraph (2) from 
any taxable year, such loss (or any 
portion thereof) shall be taken into 
account for the first taxable year in 
which a deduction for such loss (or 
portion) is not disallowed by reason of 
this subsection, and 
‘‘(II) the Secretary shall pre-
scribe rules for the computation of the 
aggregate amounts described in such 
clause in cases where the filing status 
of the taxpayer is not the same for 
the taxable year and each of the tax-
able years in the period described in 
such clause. 
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‘‘(C) FARMING BUSINESS.— 
‘‘(i) IN GENERAL.—The term ‘farming 
business’ has the meaning given such term 
in section 263A(e)(4). 
‘‘(ii) CERTAIN
TRADES
AND
BUSI-
NESSES INCLUDED.—If, without regard to 
this clause, a taxpayer is engaged in a 
farming business with respect to any agri-
cultural or horticultural commodity— 
‘‘(I) the term ‘farming business’ 
shall include any trade or business of 
the taxpayer of the processing of such 
commodity (without regard to whether 
the processing is incidental to the 
growing, raising, or harvesting of such 
commodity), and 
‘‘(II) if the taxpayer is a member 
of a cooperative to which subchapter 
T applies, any trade or business of the 
cooperative described in subclause (I) 
shall be treated as the trade or busi-
ness of the taxpayer. 
‘‘(D) CERTAIN
LOSSES
DISREGARDED.— 
For purposes of subparagraph (A)(i), there 
shall not be taken into account any deduction 
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for any loss arising by reason of fire, storm, or 
other casualty, or by reason of disease or 
drought, involving any farming business. 
‘‘(5) APPLICATION OF SUBSECTION IN CASE OF 
PARTNERSHIPS AND S CORPORATIONS.—In the case 
of a partnership or S corporation— 
‘‘(A) this subsection shall be applied at the 
partner or shareholder level, and 
‘‘(B) each partner’s or shareholder’s pro-
portionate share of the items of income, gain, 
or deduction of the partnership or S corpora-
tion for any taxable year from farming busi-
nesses attributable to the partnership or S cor-
poration, and of any applicable subsidies re-
ceived by the partnership or S corporation dur-
ing the taxable year, shall be taken into account 
by the partner or shareholder in applying this 
subsection to the taxable year of such partner 
or shareholder with or within which the taxable 
year of the partnership or S corporation ends. 
The Secretary may provide rules for the application 
of this paragraph to any other pass-thru entity to 
the extent necessary to carry out the provisions of 
this subsection. 
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‘‘(6) ADDITIONAL REPORTING.—The Secretary 
may prescribe such additional reporting require-
ments as the Secretary determines appropriate to 
carry out the purposes of this subsection. 
‘‘(7) COORDINATION WITH SECTION 469.—This 
subsection shall be applied before the application of 
section 469.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
SEC. 15352. MODIFICATION TO OPTIONAL METHOD OF COM-
PUTING NET EARNINGS FROM SELF-EMPLOY-
MENT. 
(a) AMENDMENTS
TO
THE INTERNAL REVENUE 
CODE OF 1986.— 
(1) IN GENERAL.—The matter following para-
graph (17) of section 1402(a) is amended— 
(A) by striking ‘‘$2,400’’ each place it ap-
pears and inserting ‘‘the upper limit’’, and 
(B) by striking ‘‘$1,600’’ each place it ap-
pears and inserting ‘‘the lower limit’’. 
(2) DEFINITIONS.—Section 1402 is amended by 
adding at the end the following new subsection: 
‘‘(l) UPPER AND LOWER LIMITS.—For purposes of 
subsection (a)— 
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‘‘(1) LOWER LIMIT.—The lower limit for any 
taxable year is the sum of the amounts required 
under section 213(d) of the Social Security Act for 
a quarter of coverage in effect with respect to each 
calendar quarter ending with or within such taxable 
year. 
‘‘(2) UPPER LIMIT.—The upper limit for any 
taxable year is the amount equal to 150 percent of 
the lower limit for such taxable year.’’. 
(b) AMENDMENTS TO THE SOCIAL SECURITY ACT.— 
(1) IN GENERAL.—The matter following para-
graph (16) of section 211(a) of the Social Security 
Act is amended— 
(A) by striking ‘‘$2,400’’ each place it ap-
pears and inserting ‘‘the upper limit’’, and 
(B) by striking ‘‘$1,600’’ each place it ap-
pears and inserting ‘‘the lower limit’’. 
(2) DEFINITIONS.—Section 211 of such Act is 
amended by adding at the end the following new 
subsection: 
‘‘(k) UPPER AND LOWER LIMITS.—For purposes of 
subsection (a)— 
‘‘(1) The lower limit for any taxable year is the 
sum of the amounts required under section 213(d) 
for a quarter of coverage in effect with respect to 
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each calendar quarter ending with or within such 
taxable year. 
‘‘(2) The upper limit for any taxable year is the 
amount equal to 150 percent of the lower limit for 
such taxable year.’’. 
(3) CONFORMING
AMENDMENT.—Section 212 
of such Act is amended— 
(A) in subsection (b), by striking ‘‘For’’ 
and inserting ‘‘Except as provided in subsection 
(c), for’’; and 
(B) by adding at the end the following new 
subsection: 
‘‘(c) For the purpose of determining average indexed 
monthly earnings, average monthly wage, and quarters of 
coverage in the case of any individual who elects the option 
described in clause (ii) or (iv) in the matter following sec-
tion 211(a)(16) for any taxable year that does not begin 
with or during a particular calendar year and end with 
or during such year, the self-employment income of such 
individual deemed to be derived during such taxable year 
shall be allocated to the two calendar years, portions of 
which are included within such taxable year, in the same 
proportion to the total of such deemed self-employment 
income as the sum of the amounts applicable under section 
213(d) for the calendar quarters ending with or within 
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each such calendar year bears to the lower limit for such 
taxable year specified in section 211(k)(1).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2007. 
SEC. 15353. INFORMATION REPORTING FOR COMMODITY 
CREDIT CORPORATION TRANSACTIONS. 
(a) IN GENERAL.—Subpart A of part III of sub-
chapter A of chapter 61 (relating to information con-
cerning persons subject to special provisions) is amended 
by inserting after section 6039I the following new section: 
‘‘SEC. 6039J. INFORMATION REPORTING WITH RESPECT TO 
COMMODITY CREDIT CORPORATION TRANS-
ACTIONS. 
‘‘(a) REQUIREMENT
OF REPORTING.—The Com-
modity Credit Corporation, through the Secretary of Agri-
culture, shall make a return, according to the forms and 
regulations prescribed by the Secretary of the Treasury, 
setting forth any market gain realized by a taxpayer dur-
ing the taxable year in relation to the repayment of a loan 
issued by the Commodity Credit Corporation, without re-
gard to the manner in which such loan was repaid. 
‘‘(b) STATEMENTS TO BE FURNISHED TO PERSONS 
WITH RESPECT TO WHOM INFORMATION IS REQUIRED.— 
The Secretary of Agriculture shall furnish to each person 
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whose name is required to be set forth in a return required 
under subsection (a) a written statement showing the 
amount of market gain reported in such return.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subpart A of part III of subchapter A of chapter 61 
is amended by inserting after the item relating to section 
6039I the following new item: 
‘‘Sec. 6039J. Information reporting with respect to Commodity Credit Corpora-
tion transactions.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to loans repaid on or after January 
1, 2007. 
PART V—PROTECTION OF SOCIAL SECURITY 
SEC. 15361. PROTECTION OF SOCIAL SECURITY. 
To ensure that the assets of the trust funds estab-
lished under section 201 of the Social Security Act (42 
U.S.C. 401) are not reduced as a result of the enactment 
of this Act, the Secretary of the Treasury shall transfer 
annually from the general revenues of the Federal Govern-
ment to those trust funds the following amounts: 
(1) For fiscal year 2009, $5,000,000. 
(2) For fiscal year 2010, $9,000,000. 
(3) For fiscal year 2011, $8,000,000. 
(4) For fiscal year 2012, $7,000,000. 
(5) For fiscal year 2013, $8,000,000. 
(6) For fiscal year 2014, $8,000,000. 
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(7) For fiscal year 2015, $8,000,000. 
(8) For fiscal year 2016, $6,000,000. 
(9) For fiscal year 2017, $7,000,000. 
Subtitle D—Trade Provisions 
PART I—EXTENSION OF CERTAIN TRADE 
BENEFITS 
SEC. 15401. SHORT TITLE. 
This part may be cited as the ‘‘Haitian Hemispheric 
Opportunity through Partnership Encouragement Act of 
2008’’ or the ‘‘HOPE II Act’’. 
SEC. 15402. BENEFITS FOR APPAREL AND OTHER TEXTILE 
ARTICLES. 
(a) VALUE-ADDED RULE.—Section 213A(b) of the 
Carribean Basin Economic Recovery Act (19 U.S.C. 
2703a(b)) is amended as follows: 
(1) The subsection heading is amended to read 
as follows: ‘‘APPAREL AND OTHER TEXTILE ARTI-
CLES’’. 
(2) Paragraph (1) is amended to read as fol-
lows: 
‘‘(1) VALUE-ADDED RULE FOR APPAREL ARTI-
CLES.— 
‘‘(A) IN
GENERAL.—Apparel articles de-
scribed in subparagraph (B) of a producer or 
entity controlling production that are imported 
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directly from Haiti or the Dominican Republic 
shall enter the United States free of duty dur-
ing an applicable 1-year period, subject to the 
limitations set forth in subparagraphs (B) and 
(C), and subject to subparagraph (D).’’. 
(3) Paragraph (2) is amended— 
(A) in subparagraph (A)— 
(i) by moving such subparagraph 2 
ems to the right; 
(ii) in clause (i), by striking ‘‘subpara-
graph (C)’’ and inserting ‘‘clause (iii)’’; 
(iii) in clause (ii), by striking ‘‘sub-
paragraph (C)’’ and inserting ‘‘clause 
(iii)’’; 
(iv) in the matter following clause (ii), 
by striking ‘‘subparagraph (E)(I)’’ and in-
serting ‘‘clause (v)(I)’’; 
(v) by redesignating clauses (i) and 
(ii) as subclauses (I) and (II), respectively; 
and 
(vi) by redesignating subparagraph 
(A) as clause (i); 
(B) in subparagraph (B)— 
(i) by moving such subparagraph 2 
ems to the right; 
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(ii) by striking ‘‘subparagraph (A)(i)’’ 
each place it appears and inserting ‘‘clause 
(i)(I)’’; 
(iii) by redesignating clauses (i) and 
(ii) as subclauses (I) and (II), respectively; 
and 
(iv) by redesignating subparagraph 
(B) as clause (ii); 
(C) in subparagraph (C)— 
(i) by moving such subparagraph 2 
ems to the right; 
(ii) in the matter preceding clause (i), 
by striking ‘‘subparagraph (A)’’ and insert-
ing ‘‘clause (i)’’; 
(iii) in clause (ii), by striking ‘‘that 
enters into force’’ and all that follows 
through ‘‘et seq.)’’ and inserting ‘‘that en-
ters into force thereafter’’; 
(iv) 
by 
redesignating 
clauses 
(i) 
through (v) as subclauses (I) through (V), 
respectively; and 
(v) by redesignating subparagraph (C) 
as clause (iii); 
(D) in subparagraph (D)— 
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(i) by moving such subparagraph 2 
ems to the right; 
(ii) in clause (i)— 
(I) in the matter preceding sub-
clause (I), by striking ‘‘subparagraph 
(A)’’ and inserting ‘‘clause (i)’’; 
(II) in subclause (I), by striking 
‘‘clause (i) of subparagraph (A)’’ and 
inserting ‘‘subclause (I) of clause (i)’’; 
(III) in subclause (II), by strik-
ing ‘‘clause (ii) of subparagraph (A)’’ 
and inserting ‘‘subclause (II) of clause 
(i)’’; 
(IV) by redesignating subclauses 
(I) and (II) as items (aa) and (bb), 
respectively; and 
(V) by redesignating clause (i) as 
subclause (I); 
(iii) in clause (ii)— 
(I) in the matter preceding sub-
clause (I), by striking ‘‘subparagraph 
(A)’’ and inserting ‘‘clause (i)’’; 
(II) in subclause (I), by striking 
‘‘clause (i) of subparagraph (A)’’ and 
inserting ‘‘subclause (I) of clause (i)’’; 
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(III) in subclause (II), by strik-
ing ‘‘clause (ii) of subparagraph (A)’’ 
and inserting ‘‘subclause (II) of clause 
(i)’’; 
(IV) by redesignating subclauses 
(I) and (II) as items (aa) and (bb), 
respectively; and 
(V) by redesignating clause (ii) 
as subclause (II); 
(iv) in clause (iii)— 
(I) by striking ‘‘clause (i)(I) or 
(ii)(I)’’ each place it appears and in-
serting 
‘‘subclause 
(I)(aa) 
or 
(II)(aa)’’; 
(II) by redesignating subclauses 
(I) and (II) as items (aa) and (bb), 
respectively; and 
(III) by redesignating clause (iii) 
as subclause (III); 
(v) by amending clause (iv) to read as 
follows: 
‘‘(IV) INCLUSION
IN
CALCULA-
TION OF OTHER ARTICLES RECEIVING 
PREFERENTIAL TREATMENT.—Entries 
of apparel articles that receive pref-
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erential treatment under any provision 
of law other than this subparagraph 
or are subject to the ‘General’ column 
1 rate of duty under the HTS are not 
included in the annual aggregation 
under subclause (I) or (II) unless the 
producer or entity controlling produc-
tion elects, at the time the annual ag-
gregation calculation is made, to in-
clude such entries in such aggrega-
tion.’’; and 
(vi) by redesignating subparagraph 
(D) as clause (iv); 
(E) in subparagraph (E)— 
(i) by moving such subparagraph 2 
ems to the right; 
(ii) in clause (i)— 
(I) by redesignating subclauses 
(I) through (III) as items (aa) 
through (cc), respectively; and 
(II) by redesignating clause (i) as 
subclause (I); 
(iii) in clause (ii)— 
(I) by striking ‘‘subparagraph 
(C)’’ and inserting ‘‘clause (iii)’’; and 
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(II) by redesignating clause (ii) 
as subclause (II); and 
(iv) by redesignating subparagraph 
(E) as clause (v); 
(F) in subparagraph (F)— 
(i) by moving such subparagraph 2 
ems to the right; 
(ii) in clause (i)— 
(I) by striking ‘‘The Bureau of 
Customs and Border Protection’’ and 
inserting ‘‘U.S. Customs and Border 
Protection’’; 
(II) by striking ‘‘subparagraphs 
(A) and (D)’’ and inserting ‘‘clauses 
(i) and (iv)’’; and 
(III) by redesignating clause (i) 
as subclause (I); 
(iii) in clause (ii)— 
(I) in the matter preceding sub-
clause (I)— 
(aa) by striking ‘‘the Bureau 
of Customs and Border Protec-
tion’’ and inserting ‘‘U.S. Cus-
toms and Border Protection’’; 
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(bb) by striking ‘‘subpara-
graph (A)’’ each place it appears 
and inserting ‘‘clause (i)’’; and 
(cc) by striking ‘‘subpara-
graph (D)’’ and inserting ‘‘clause 
(iv)’’; 
(II) in subclause (I), by striking 
‘‘clause (i) of subparagraph (A)’’ and 
inserting ‘‘subclause (I) of clause (i)’’; 
(III) in subclause (II), by strik-
ing ‘‘clause (ii) of subparagraph (A)’’ 
and inserting ‘‘subclause (II) of clause 
(i)’’; 
(IV) in the matter following sub-
clause (II), by striking ‘‘subparagraph 
(E)(i)’’ and inserting ‘‘clause (v)(I)’’; 
(V) by redesignating subclauses 
(I) and (II) as items (aa) and (bb), 
respectively; and 
(VI) by redesignating clause (ii) 
as subclause (II); 
(iv) in clause (iii)— 
(I) in subclause (I)— 
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(aa) by striking ‘‘paragraph 
(1)’’ and inserting ‘‘subpara-
graph (A)’’; and 
(bb) by striking ‘‘subpara-
graph (A) or (D)’’ and inserting 
‘‘clause (i) or (iv)’’; 
(II) in subclause (II), by striking 
‘‘clause (ii) of this subparagraph’’ and 
inserting ‘‘subclause (II) of this 
clause’’; 
(III) in the matter following sub-
clause (II)— 
(aa) by striking ‘‘the Bureau 
of Customs and Border Protec-
tion’’ each place it appears and 
inserting ‘‘U.S. Customs and 
Border Protection’’; and 
(bb) by striking ‘‘subclause 
(II)’’ and inserting ‘‘item (bb)’’; 
and 
(IV) in item (bb)— 
(aa) by striking ‘‘paragraph 
(1)’’ and inserting ‘‘subpara-
graph (A)’’; and 
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(bb) by striking ‘‘subpara-
graph (A) or (D)’’ and inserting 
‘‘clause (i) or (iv)’’; and 
(V) in the matter following item 
(bb), by striking ‘‘paragraph (1)’’ and 
inserting ‘‘subparagraph (A)’’; 
(VI) by redesignating items (aa) 
and (bb) as subitems (AA) and (BB), 
respectively; 
(VII) by redesignating subclauses 
(I) and (II) as items (aa) and (bb), 
respectively; and 
(VIII) by redesignating clause 
(iii) as subclause (III); and 
(v) by redesignating subparagraph (F) 
as clause (vi); 
(G) in subparagraph (G)— 
(i) by moving such subparagraph 2 
ems to the right; 
(ii) in clause (i)— 
(I) in the matter preceding sub-
clause (I), by striking ‘‘subparagraph 
(A) or (D)’’ and inserting ‘‘clause (i) 
or (iv)’’; 
(II) in subclause (II)— 
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(aa) in item (dd), by strik-
ing ‘‘under the Bipartisan Trade 
Promotion 
Authority 
Act 
of 
2002’’ and inserting ‘‘with re-
spect to the United States’’; and 
(bb) by redesignating items 
(aa) through (dd) as subitems 
(AA) through (DD), respectively; 
(III) by redesignating subclauses 
(I) and (II) as items (aa) and (bb), 
respectively; and 
(IV) by redesignating clause (i) 
as subclause (I); 
(iii) in clause (ii)— 
(I) in subclause (I), by striking 
‘‘clause (i)(I)’’ and inserting ‘‘sub-
clause (I)(aa)’’; 
(II) in subclause (II), by striking 
‘‘clause (i)(II)’’ and inserting ‘‘sub-
clause (I)(bb)’’; 
(III) by redesignating subclauses 
(I) and (II) as items (aa) and (bb), 
respectively; and 
(IV) by redesignating clause (ii) 
as subclause (II); and 
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(iv) by redesignating subparagraph 
(G) as clause (vii); and 
(H) by striking ‘‘(2) APPAREL ARTICLES 
DESCRIBED.—’’ and inserting the following: 
‘‘(B) APPAREL ARTICLES DESCRIBED.—’’. 
(4) Paragraph (3) is amended— 
(A) by redesignating such paragraph as 
subparagraph (C) and moving it 2 ems to the 
right; 
(B) by striking ‘‘paragraph (1)’’ each place 
it appears and inserting ‘‘subparagraph (A)’’; 
and 
(C) in the table— 
(i) by striking ‘‘1.5 percent’’ and in-
serting ‘‘1.25 percent’’; 
(ii) by striking ‘‘1.75 percent’’ and in-
serting ‘‘1.25 percent’’; and 
(iii) by striking ‘‘2 percent’’ and in-
serting ‘‘1.25 percent’’. 
(5) The following is added after subparagraph 
(C), as redesignated by paragraph (4)(A) of this 
subsection: 
‘‘(D) OTHER PREFERENTIAL TREATMENT 
NOT
AFFECTED
BY
QUANTITATIVE
LIMITA-
TIONS.—Any apparel article that qualifies for 
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1718 
preferential treatment under paragraph (2), 
(3), (4), or (5) or any other provision of this 
title shall not be subject to, or included in the 
calculation of, the quantitative limitations under 
subparagraph (C).’’. 
(b) SPECIAL RULE FOR WOVEN ARTICLES AND CER-
TAIN KNIT ARTICLES.—Section 213A(b) of the Carribean 
Basin Economic Recovery Act is amended by striking 
paragraph (4) and inserting the following: 
‘‘(2) SPECIAL RULE FOR WOVEN ARTICLES AND 
CERTAIN KNIT ARTICLES.— 
‘‘(A) SPECIAL
RULE
FOR
ARTICLES
OF 
CHAPTER 62 OF THE HTS.— 
‘‘(i) GENERAL
RULE.—Any apparel 
article classifiable under chapter 62 of the 
HTS that is wholly assembled, or knit-to- 
shape, in Haiti from any combination of 
fabrics, fabric components, components 
knit-to-shape, or yarns and is imported di-
rectly from Haiti or the Dominican Repub-
lic shall enter the United States free of 
duty, subject to clauses (ii) and (iii), with-
out regard to the source of the fabric, fab-
ric components, components knit-to-shape, 
or yarns from which the article is made. 
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‘‘(ii) LIMITATION.—The preferential 
treatment described in clause (i) shall be 
extended, in the 1-year period beginning 
October 1, 2008, and in each of the 9 suc-
ceeding 1-year periods, to not more than 
70,000,000 square meter equivalents of ap-
parel articles described in such clause. 
‘‘(iii) OTHER PREFERENTIAL TREAT-
MENT NOT AFFECTED BY QUANTITATIVE 
LIMITATION.—Any apparel article that 
qualifies for preferential treatment under 
paragraph (1), (3), (4), or (5) or subpara-
graph (B) of this paragraph or any other 
provision of this title shall not be subject 
to, or included in the calculation of, the 
quantitative limitation under clause (ii). 
‘‘(B) SPECIAL RULE FOR CERTAIN ARTI-
CLES OF CHAPTER 61 OF THE HTS.— 
‘‘(i) GENERAL
RULE.—Any apparel 
article classifiable under chapter 61 of the 
HTS that is wholly assembled, or knit-to- 
shape, in Haiti from any combination of 
fabrics, fabric components, components 
knit-to-shape, or yarns and is imported di-
rectly from Haiti or the Dominican Repub-
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lic shall enter the United States free of 
duty, subject to clauses (ii), (iii), and (iv), 
without regard to the source of the fabric, 
fabric components, components knit-to- 
shape, or yarns from which the article is 
made. 
‘‘(ii) EXCLUSIONS.—The preferential 
treatment described in clause (i) shall not 
apply to the following: 
‘‘(I) The following apparel arti-
cles of cotton, for men or boys, that 
are 
classifiable 
under 
subheading 
6109.10.00 of the HTS: 
‘‘(aa) All white T-shirts, 
with short hemmed sleeves and 
hemmed bottom, with crew or 
round neckline or with V-neck 
and with a mitered seam at the 
center of the V, and without 
pockets, trim, or embroidery. 
‘‘(bb) All white singlets, 
without pockets, trim, or embroi-
dery. 
‘‘(cc) Other T-shirts, but not 
including thermal undershirts. 
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‘‘(II) T-shirts for men or boys 
that are classifiable under subheading 
6109.90.10. 
‘‘(III) The following apparel arti-
cles of cotton, for men or boys, that 
are 
classifiable 
under 
subheading 
6110.20.20 of the HTS: 
‘‘(aa) Sweatshirts. 
‘‘(bb) Pullovers, other than 
sweaters, vests, or garments im-
ported as part of playsuits. 
‘‘(IV) Sweatshirts for men or 
boys, of man-made fibers and con-
taining less than 65 percent by weight 
of man-made fibers, that are classifi-
able under subheading 6110.30.30 of 
the HTS. 
‘‘(iii) LIMITATION.—The preferential 
treatment described in clause (i) shall be 
extended, in the 1-year period beginning 
October 1, 2008, and in each of the 9 suc-
ceeding 1-year periods, to not more than 
70,000,000 square meter equivalents of ap-
parel articles described in such clause. 
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‘‘(iv) OTHER PREFERENTIAL TREAT-
MENT NOT AFFECTED BY QUANTITATIVE 
LIMITATION.—Any apparel article that 
qualifies for preferential treatment under 
paragraph (1), (3), (4), or (5) or subpara-
graph (A) of this paragraph or any other 
provision of this title shall not be subject 
to, or included in the calculation of, the 
quantitative limitation under clause (iii).’’. 
(c) SINGLE TRANSFORMATION RULES NOT SUBJECT 
TO QUANTITATIVE LIMITATIONS.—Section 213A(b) of the 
Caribbean Basin Economic Recovery Act is amended by 
striking paragraph (5) and inserting the following: 
‘‘(3) APPAREL AND OTHER ARTICLES SUBJECT 
TO CERTAIN ASSEMBLY RULES.— 
‘‘(A) BRASSIERES.—Any apparel article 
classifiable under subheading 6212.10 of the 
HTS that is wholly assembled, or knit-to-shape, 
in Haiti from any combination of fabrics, fabric 
components, components knit-to-shape, or yarns 
and is imported directly from Haiti or the Do-
minican Republic shall enter the United States 
free of duty, without regard to the source of the 
fabric, fabric components, components knit-to- 
shape, or yarns from which the article is made. 
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‘‘(B) OTHER APPAREL ARTICLES.—Any of 
the following apparel articles that is wholly as-
sembled, or knit-to-shape, in Haiti from any 
combination of fabrics, fabric components, com-
ponents knit-to-shape, or yarns and is imported 
directly from Haiti or the Dominican Republic 
shall enter the United States free of duty, with-
out regard to the source of the fabric, fabric 
components, components knit-to-shape, or yarns 
from which the article is made: 
‘‘(i) Any apparel article that is of a 
type listed in chapter rule 3, 4, or 5 for 
chapter 61 of the HTS (as such chapter 
rules are contained in section A of the 
Annex to Proclamation 8213 of the Presi-
dent of December 20, 2007) as being ex-
cluded from the scope of such chapter rule, 
when such chapter rule is applied to deter-
mine whether an apparel article is an origi-
nating good for purposes of general note 
29(n) to the HTS, except that, for pur-
poses of this clause, reference in such 
chapter rules to ‘6104.12.00’ shall be 
deemed to be a reference to ‘6104.19.60’. 
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‘‘(ii)(I) Subject to subclause (II), any 
apparel article that is of a type listed in 
chapter rule 3(a), 4(a), or 5(a) for chapter 
62 of the HTS, as such chapter rules are 
contained in paragraph 9 of section A of 
the Annex to Proclamation 8213 of the 
President of December 20, 2007. 
‘‘(II) Subclause (I) shall not include 
any apparel article to which subparagraph 
(A) of this paragraph applies. 
‘‘(C) LUGGAGE AND SIMILAR ITEMS.—Any 
article classifiable under subheading 4202.12, 
4202.22, 4202.32 or 4202.92 of the HTS that 
is wholly assembled in Haiti and is imported di-
rectly from Haiti or the Dominican Republic 
shall enter the United States free of duty, with-
out regard to the source of the fabric, compo-
nents, or materials from which the article is 
made. 
‘‘(D) HEADGEAR.—Any article classifiable 
under heading 6501, 6502, or 6504 of the 
HTS, or under subheading 6505.90 of the 
HTS, that is wholly assembled, knit-to-shape, 
or formed in Haiti from any combination of 
fabrics, fabric components, components knit-to- 
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1725 
shape, or yarns and is imported directly from 
Haiti or the Dominican Republic shall enter the 
United States free of duty, without regard to 
the source of the fabric, fabric components, 
components knit-to-shape, or yarns from which 
the article is made. 
‘‘(E) CERTAIN SLEEPWEAR.—Any of the 
following apparel articles that is wholly assem-
bled, or knit-to-shape, in Haiti from any com-
bination of fabrics, fabric components, compo-
nents knit-to-shape, or yarns and is imported 
directly from Haiti or the Dominican Republic 
shall enter the United States free of duty, with-
out regard to the source of the fabric, fabric 
components, components knit-to-shape, or yarns 
from which the article is made: 
‘‘(i) 
Pajama 
bottoms 
and 
other 
sleepwear for women and girls, of cotton, 
that are classifiable under subheading 
6208.91.30, or of man-made fibers, that 
are 
classifiable 
under 
subheading 
6208.92.00. 
‘‘(ii) Pajama bottoms and other 
sleepwear for girls, of other textile mate-
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rials, that are classifiable under sub-
heading 6208.99.20.’’. 
(d) EARNED IMPORT ALLOWANCE RULES.—Section 
231A(b) of the Caribbean Basin Economic Recovery Act 
is amended by adding at the end the following new para-
graph: 
‘‘(4) EARNED IMPORT ALLOWANCE RULE.— 
‘‘(A) IN GENERAL.—Apparel articles whol-
ly assembled, or knit-to-shape, in Haiti from 
any combination of fabrics, fabric components, 
components knit-to-shape, or yarns and im-
ported directly from Haiti or the Dominican 
Republic shall enter the United States free of 
duty, without regard to the source of the fabric, 
fabric components, components knit-to-shape, 
or yarns from which the articles are made, if 
such apparel articles are accompanied by an 
earned import allowance certificate that reflects 
the amount of credits equal to the total square 
meter equivalents of such apparel articles, in 
accordance with the program established under 
subparagraph (B). For purposes of determining 
the quantity of square meter equivalents under 
this subparagraph, the conversion factors listed 
in ‘Correlation: U.S. Textile and Apparel Indus-
VerDate Aug 31 2005 
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try Category System with the Harmonized Tar-
iff Schedule of the United States of America, 
2008’, or its successor publications, of the 
United States Department of Commerce, shall 
apply. 
‘‘(B) EARNED IMPORT ALLOWANCE PRO-
GRAM.— 
‘‘(i) ESTABLISHMENT.—The Secretary 
of Commerce shall establish a program to 
provide earned import allowance certifi-
cates to any producer or entity controlling 
production for purposes of subparagraph 
(A), based on the elements described in 
clause (ii). 
‘‘(ii) ELEMENTS.—The elements re-
ferred to in clause (i) are the following: 
‘‘(I) One credit shall be issued to 
a producer or an entity controlling 
production for every three square 
meter equivalents of qualifying woven 
fabric or qualifying knit fabric that 
the producer or entity controlling pro-
duction can demonstrate that it pur-
chased for the manufacture in Haiti 
of articles like or similar to any article 
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eligible 
for 
preferential 
treatment 
under subparagraph (A). The Sec-
retary of Commerce shall, if requested 
by a producer or entity controlling 
production, create and maintain an 
account for such producer or entity 
controlling production, into which 
such credits shall be deposited. 
‘‘(II) Such producer or entity 
controlling production may redeem 
credits issued under subclause (I) for 
earned import allowance certificates 
reflecting such number of earned 
credits as the producer or entity may 
request and has available. 
‘‘(III) The Secretary of Com-
merce may require any textile mill or 
other entity located in the United 
States that exports to Haiti qualifying 
woven fabric or qualifying knit fabric 
to submit, upon such export or upon 
request, documentation, such as a 
Shipper’s Export Declaration, to the 
Secretary of Commerce— 
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1729 
‘‘(aa) 
verifying 
that 
the 
qualifying woven fabric or quali-
fying knit fabric was exported to 
a producer in Haiti or to an enti-
ty controlling production; and 
‘‘(bb) identifying such pro-
ducer or entity controlling pro-
duction, and the quantity and de-
scription of qualifying woven fab-
ric or qualifying knit fabric ex-
ported to such producer or entity 
controlling production. 
‘‘(IV) The Secretary of Com-
merce may require that a producer or 
entity controlling production submit 
documentation to verify purchases of 
qualifying woven fabric or qualifying 
knit fabric. 
‘‘(V) The Secretary of Commerce 
may make available to each person or 
entity identified in documentation 
submitted under subclause (III) or 
(IV) information contained in such 
documentation that relates to the pur-
chase of qualifying woven fabric or 
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1730 
qualifying knit fabric involving such 
person or entity. 
‘‘(VI) The program under this 
subparagraph shall be established so 
as to allow, to the extent feasible, the 
submission, storage, retrieval, and dis-
closure of information in electronic 
format, including information with re-
spect to the earned import allowance 
certificates required under subpara-
graph (A)(i). 
‘‘(VII) The Secretary of Com-
merce may reconcile discrepancies in 
information provided under subclause 
(III) or (IV) and verify the accuracy 
of such information. 
‘‘(VIII) The Secretary of Com-
merce shall establish procedures to 
carry out the program under this sub-
paragraph and may establish addi-
tional requirements to carry out this 
subparagraph. Such additional re-
quirements may include— 
‘‘(aa) submissions by textile 
mills or other entities in the 
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United States documenting ex-
ports of yarns wholly formed in 
the United States to countries 
described in paragraph (1)(B)(iii) 
for the manufacture of qualifying 
knit fabric; and 
‘‘(bb) procedures imposed on 
producers or entities controlling 
production to allow the Secretary 
of Commerce to obtain and verify 
information relating to the pro-
duction of qualifying knit fabric. 
‘‘(iii) QUALIFYING WOVEN FABRIC DE-
FINED.—For purposes of this subpara-
graph, the term ‘qualifying woven fabric’ 
means fabric wholly formed in the United 
States from yarns wholly formed in the 
United States, except that— 
‘‘(I) fabric otherwise eligible as 
qualifying woven fabric shall not be 
ineligible as qualifying woven fabric 
because the fabric contains nylon fila-
ment 
yarn 
to 
which 
section 
213(b)(2)(A)(vii)(IV) applies; 
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‘‘(II) fabric that would otherwise 
be ineligible as qualifying woven fabric 
because the fabric contains yarns not 
wholly formed in the United States 
shall not be ineligible as qualifying 
woven fabric if the total weight of all 
such yarns is not more than 10 per-
cent of the total weight of the fabric; 
and 
‘‘(III) fabric otherwise eligible as 
qualifying woven fabric shall not be 
ineligible as qualifying fabric because 
the fabric contains yarns covered by 
clause (i) or (ii) of paragraph (5)(A). 
‘‘(iv) QUALIFYING KNIT FABRIC DE-
FINED.—For purposes of this subpara-
graph, the term ‘qualifying knit fabric’ 
means fabric or knit-to-shape components 
wholly formed or knit-to-shape in any 
country or any combination of countries 
described in paragraph (1)(B)(iii), from 
yarns wholly formed in the United States, 
except that— 
‘‘(I) fabric or knit-to-shape com-
ponents otherwise eligible as quali-
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fying knit fabric shall not be ineligible 
as qualifying knit fabric because the 
fabric or knit-to-shape components 
contain nylon filament yarn to which 
section 213(b)(2)(A)(vii)(IV) applies; 
‘‘(II) fabric or knit-to-shape com-
ponents that would otherwise be ineli-
gible as qualifying knit fabric because 
the fabric or knit-to-shape components 
contain yarns not wholly formed in 
the United States shall not be ineli-
gible as qualifying knit fabric if the 
total weight of all such yarns is not 
more than 10 percent of the total 
weight of the fabric or knit-to-shape 
components; and 
‘‘(III) fabric or knit-to-shape 
components 
otherwise 
eligible 
as 
qualifying knit fabric shall not be in-
eligible as qualifying knit fabric be-
cause the fabric or knit-to-shape com-
ponents contain yarns covered by 
clause (i) or (ii) of paragraph (5)(A). 
‘‘(C) REVIEW BY UNITED STATES GOVERN-
MENT
ACCOUNTABILITY
OFFICE.—The United 
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States Government Accountability Office shall 
review the program established under subpara-
graph (B) annually for the purpose of evalu-
ating the effectiveness of, and making rec-
ommendations for improvements in, the pro-
gram. 
‘‘(D) ENFORCEMENT PROVISIONS.— 
‘‘(i) FRAUDULENT CLAIMS OF PREF-
ERENCE.—Any person who makes a false 
claim for preference under the program es-
tablished under subparagraph (B) shall be 
subject to any applicable civil or criminal 
penalty that may be imposed under the 
customs laws of the United States or 
under title 18, United States Code. 
‘‘(ii) PENALTIES FOR OTHER FRAUDU-
LENT
INFORMATION.—The Secretary of 
Commerce may establish and impose pen-
alties for the submission to the Secretary 
of Commerce of fraudulent information 
under the program established under sub-
paragraph (B), other than a claim de-
scribed in clause (i).’’. 
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as not being available in commercial quan-
tities for purposes of— 
‘‘(I) section 213(b)(2)(A)(v) of 
this Act; 
‘‘(II) section 112(b)(5) of the Af-
rican Growth and Opportunity Act; 
‘‘(III) clause (i)(III) or (ii) of 
section 204(b)(3)(B) of the Andean 
Trade Preference Act; or 
‘‘(IV) any other provision, relat-
ing to determining whether a textile 
or apparel article is an originating 
good eligible for preferential treat-
ment, of a law that implements a free 
trade agreement entered into by the 
United States that is in effect at the 
time the claim for preferential treat-
ment is made. 
‘‘(B) REMOVAL OF DESIGNATION OF FAB-
RICS OR YARNS NOT AVAILABLE IN COMMER-
CIAL QUANTITIES.—If the President determines 
that— 
‘‘(i) any fabric or yarn described in 
clause (i) of subparagraph (A) was deter-
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mined to be eligible for preferential treat-
ment, or 
‘‘(ii) any fabric or yarn described in 
clause (ii) of subparagraph (A) was des-
ignated as not being available in commer-
cial quantities, 
on the basis of fraud, the President is author-
ized to remove the eligibility or designation (as 
the case may be) of that fabric or yarn with re-
spect to articles entered after such removal.’’. 
(f) MISCELLANEOUS PROVISIONS.— 
(1) RELATIONSHIP TO OTHER PREFERENTIAL 
PROGRAMS.—Section 213A(b) of the Caribbean 
Basin Economic Recovery Act is amended by adding 
at the end the following: 
‘‘(6) OTHER PREFERENTIAL TREATMENT NOT 
AFFECTED.—The 
duty-free 
treatment 
provided 
under this subsection is in addition to any other 
preferential treatment under this title.’’. 
(2) DEFINITIONS.—Section 213A(a) of the Car-
ibbean Basin Economic Recovery Act (19 U.S.C. 
2703a(a)) is amended by adding at the end the fol-
lowing: 
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‘‘(3) IMPORTED DIRECTLY FROM HAITI OR THE 
DOMINICAN
REPUBLIC.—Articles are ‘imported di-
rectly from Haiti or the Dominican Republic’ if— 
‘‘(A) the articles are shipped directly from 
Haiti or the Dominican Republic into the 
United States without passing through the ter-
ritory of any intermediate country; or 
‘‘(B) the articles are shipped from Haiti or 
the Dominican Republic into the United States 
through the territory of an intermediate coun-
try, and— 
‘‘(i) the articles in the shipment do 
not enter into the commerce of any inter-
mediate country, and the invoices, bills of 
lading, and other shipping documents 
specify the United States as the final des-
tination; or 
‘‘(ii) the invoices and other documents 
do not specify the United States as the 
final destination, but the articles in the 
shipment— 
‘‘(I) remain under the control of 
the customs authority in the inter-
mediate country; 
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‘‘(II) do not enter into the com-
merce of the intermediate country ex-
cept for the purpose of a sale other 
than at retail; and 
‘‘(III) have not been subjected to 
operations in the intermediate country 
other than loading, unloading, or 
other activities necessary to preserve 
the articles in good condition. 
‘‘(4) KNIT-TO-SHAPE.—A good is ‘knit-to- 
shape’ if 50 percent or more of the exterior surface 
area of the good is formed by major parts that have 
been knitted or crocheted directly to the shape used 
in the good, with no consideration being given to 
patch pockets, applique´s, or the like. Minor cutting, 
trimming, or sewing of those major parts shall not 
affect the determination of whether a good is ‘knit- 
to-shape.’ 
‘‘(5) WHOLLY ASSEMBLED.—A good is ‘wholly 
assembled’ in Haiti if all components, of which there 
must be at least two, pre-existed in essentially the 
same condition as found in the finished good and 
were combined to form the finished good in Haiti. 
Minor attachments and minor embellishments (for 
example, applique´s, beads, spangles, embroidery, and 
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buttons) not appreciably affecting the identity of the 
good, and minor subassemblies (for example, collars, 
cuffs, plackets, and pockets), shall not affect the de-
termination of whether a good is ‘wholly assembled’ 
in Haiti.’’. 
(g) TERMINATION.—Section 213A of the Caribbean 
Basin Economic Recovery Act (19 U.S.C. 2703a) is 
amended by adding at the end the following new sub-
section: 
‘‘(g) TERMINATION.—Except as provided in sub-
section (b)(1), the duty-free treatment provided under this 
section shall remain in effect until September 30, 2018.’’. 
(h) CONFORMING AMENDMENTS.—Subsection (e)(1) 
of section 213A of the Caribbean Basin Economic Recov-
ery Act (19 U.S.C. 2703a(e)(1)) is amended by striking 
‘‘the Bureau of Customs and Border Protection’’ each 
place it appears and inserting ‘‘U.S. Customs and Border 
Protection’’. 
SEC. 15403. LABOR OMBUDSMAN AND TECHNICAL ASSIST-
ANCE 
IMPROVEMENT 
AND 
COMPLIANCE 
NEEDS ASSESSMENT AND REMEDIATION PRO-
GRAM. 
Section 213A of the Caribbean Basin Economic Re-
covery Act (19 U.S.C. 2703a), as amended by section 
15402 of this Act, is amended— 
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(1) in subsection (a)— 
(A) by redesignating paragraph (5) as 
paragraph (8): 
(B) 
by 
redesignating 
paragraphs 
(2) 
through (4) as paragraphs (4) through (6), re-
spectively; 
(C) by inserting after paragraph (1) the 
following new paragraphs: 
‘‘(2) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—. The term ‘‘appropriate congressional com-
mittees’’ means the Committee on Finance of the 
Senate and the Committee on Ways and Means of 
the House of Representatives. 
‘‘(3) CORE
LABOR
STANDARDS.—The term 
‘‘core labor standards’’ means— 
‘‘(A) freedom of association; 
‘‘(B) the effective recognition of the right 
to bargain collectively; 
‘‘(C) the elimination of all forms of com-
pulsory or forced labor; 
‘‘(D) the effective abolition of child labor 
and a prohibition on the worst forms of child 
labor; and 
‘‘(E) the elimination of discrimination in 
respect of employment and occupation.’’; and 
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(D) by inserting after paragraph (6) (as 
redesignated) the following new paragraph: 
‘‘(7) 
TAICNAR 
PROGRAM.—The 
term 
‘TAICNAR Program’ means the Technical Assist-
ance Improvement and Compliance Needs Assess-
ment and Remediation Program established pursu-
ant to subsection (e).’’; 
(2) by redesignating subsections (e), (f), and 
(g) as subsections (f), (g), and (h), respectively; and 
(3) by inserting after subsection (d) the fol-
lowing new subsection: 
‘‘(e) TECHNICAL ASSISTANCE IMPROVEMENT
AND 
COMPLIANCE NEEDS ASSESSMENT
AND REMEDIATION 
PROGRAM.— 
‘‘(1) CONTINUED
ELIGIBILITY
FOR
PREF-
ERENCES.— 
‘‘(A) PRESIDENTIAL
CERTIFICATION
OF 
COMPLIANCE BY HAITI WITH REQUIREMENTS.— 
Upon the expiration of the 16-month period be-
ginning on the date of the enactment of the 
Haitian 
Hemispheric 
Opportunity 
through 
Partnership Encouragement Act of 2008, Haiti 
shall continue to be eligible for the preferential 
treatment provided under subsection (b) only if 
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the President determines and certifies to the 
Congress that— 
‘‘(i) Haiti has implemented the re-
quirements set forth in paragraphs (2) and 
(3); and 
‘‘(ii) Haiti has agreed to require pro-
ducers of articles for which duty-free treat-
ment may be requested under subsection 
(b) to participate in the TAICNAR Pro-
gram described in paragraph (3) and has 
developed a system to ensure participation 
in such program by such producers, includ-
ing by developing and maintaining the reg-
istry described in paragraph (2)(B)(i). 
‘‘(B) EXTENSION.—The President may ex-
tend the period for compliance by Haiti under 
subparagraph (A) if the President— 
‘‘(i) determines that Haiti has made a 
good faith effort toward such compliance 
and has agreed to take additional steps to 
come into full compliance that are satisfac-
tory to the President; and 
‘‘(ii) provides to the appropriate con-
gressional committees, not later than 6 
months after the last day of the 16-month 
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period specified in subparagraph (A), and 
every 6 months thereafter, a report identi-
fying the steps that Haiti has agreed to 
take to come into full compliance and the 
progress made over the preceding 6-month 
period in implementing such steps. 
‘‘(C) CONTINUING COMPLIANCE.— 
‘‘(i) TERMINATION OF PREFERENTIAL 
TREATMENT.—If, after making a certifi-
cation under subparagraph (A), the Presi-
dent determines that Haiti is no longer 
meeting the requirements set forth in sub-
paragraph (A), the President shall termi-
nate the preferential treatment provided 
under subsection (b), unless the President 
determines, after consulting with the ap-
propriate congressional committees, that 
meeting such requirements is not prac-
ticable 
because 
of 
extraordinary 
cir-
cumstances existing in Haiti when the de-
termination is made. 
‘‘(ii) SUBSEQUENT
COMPLIANCE.—If 
the President, after terminating pref-
erential treatment under clause (i), deter-
mines that Haiti is meeting the require-
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ments set forth in subparagraph (A), the 
President shall reinstate the application of 
preferential treatment under subsection 
(b). 
‘‘(2) LABOR OMBUDSMAN.— 
‘‘(A) 
IN
GENERAL.—The 
requirement 
under this paragraph is that Haiti has estab-
lished an independent Labor Ombudsman’s Of-
fice within the national government that— 
‘‘(i) reports directly to the President 
of Haiti; 
‘‘(ii) is headed by a Labor Ombuds-
man chosen by the President of Haiti, in 
consultation with Haitian labor unions and 
industry associations; and 
‘‘(iii) is vested with the authority to 
perform the functions described in sub-
paragraph (B). 
‘‘(B) FUNCTIONS.—The functions of the 
Labor Ombudsman’s Office shall include— 
‘‘(i) developing and maintaining a reg-
istry of producers of articles for which 
duty-free treatment may be requested 
under subsection (b), and developing, in 
consultation and coordination with any 
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other appropriate officials of the Govern-
ment of Haiti, a system to ensure partici-
pation by such producers in the TAICNAR 
Program described in paragraph (3); 
‘‘(ii) overseeing the implementation of 
the TAICNAR Program described in para-
graph (3); 
‘‘(iii) receiving and investigating com-
ments from any interested party regarding 
the conditions described in paragraph 
(3)(B) in facilities of producers listed in 
the registry described in clause (i) and, 
where appropriate, referring such com-
ments or the result of such investigations 
to the appropriate Haitian authorities, or 
to the entity operating the TAICNAR Pro-
gram described in paragraph (3); 
‘‘(iv) assisting, in consultation and co-
ordination with any other appropriate Hai-
tian authorities, producers listed in the 
registry described in clause (i) in meeting 
the conditions set forth in paragraph 
(3)(B); and 
‘‘(v) coordinating, with the assistance 
of the entity operating the TAICNAR Pro-
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gram described in paragraph (3), a tri-
partite committee comprised of appropriate 
representatives of government agencies, 
employers, and workers, as well as other 
relevant interested parties, for the pur-
poses of evaluating progress in imple-
menting the TAICNAR Program described 
in paragraph (3), and consulting on im-
proving core labor standards and working 
conditions in the textile and apparel sector 
in Haiti, and on other matters of common 
concern relating to such core labor stand-
ards and working conditions. 
‘‘(3) TECHNICAL
ASSISTANCE
IMPROVEMENT 
AND COMPLIANCE NEEDS ASSESSMENT AND REMEDI-
ATION PROGRAM.— 
‘‘(A) 
IN
GENERAL.—The 
requirement 
under this paragraph is that Haiti, in coopera-
tion with the International Labor Organization, 
has established a Technical Assistance Improve-
ment and Compliance Needs Assessment and 
Remediation Program meeting the requirements 
under subparagraph (C)— 
‘‘(i) to assess compliance by producers 
listed in the registry described in para-
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graph (2)(B)(i) with the conditions set 
forth in subparagraph (B) and to assist 
such producers in meeting such conditions; 
and 
‘‘(ii) to provide assistance to improve 
the capacity of the Government of Haiti— 
‘‘(I) to inspect facilities of pro-
ducers listed in the registry described 
in paragraph (2)(B)(i); and 
‘‘(II) to enforce national labor 
laws and resolve labor disputes, in-
cluding through measures described in 
subparagraph (E). 
‘‘(B) CONDITIONS DESCRIBED.—The con-
ditions referred to in subparagraph (A) are— 
‘‘(i) compliance with core labor stand-
ards; and 
‘‘(ii) compliance with the labor laws of 
Haiti that relate directly to core labor 
standards and to ensuring acceptable con-
ditions of work with respect to minimum 
wages, hours of work, and occupational 
health and safety. 
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‘‘(C) REQUIREMENTS.—The requirements 
for the TAICNAR Program are that the pro-
gram— 
‘‘(i) be operated by the International 
Labor Organization (or any subdivision, in-
strumentality, or designee thereof), which 
prepares the biannual reports described in 
subparagraph (D); 
‘‘(ii) 
be 
developed 
through 
a 
participatory process that includes the 
Labor Ombudsman described in paragraph 
(2) and appropriate representatives of gov-
ernment agencies, employers, and workers; 
‘‘(iii) assess compliance by each pro-
ducer listed in the registry described in 
paragraph (2)(B)(i) with the conditions set 
forth in subparagraph (B) and identify any 
deficiencies by such producer with respect 
to meeting such conditions, including by— 
‘‘(I) conducting unannounced site 
visits to manufacturing facilities of 
the producer; 
‘‘(II) 
conducting 
confidential 
interviews separately with workers 
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and management of the facilities of 
the producer; 
‘‘(III) providing to management 
and workers, and where applicable, 
worker organizations in the facilities 
of the producer, on a confidential 
basis— 
‘‘(aa) the results of the as-
sessment carried out under this 
clause; and 
‘‘(bb) specific suggestions 
for remediating any such defi-
ciencies; 
‘‘(iv) assist the producer in remedi-
ating any deficiencies identified under 
clause (iii); 
‘‘(v) conduct prompt follow-up site 
visits to the facilities of the producer to as-
sess progress on remediation of any defi-
ciencies identified under clause (iii); and 
‘‘(vi) provide training to workers and 
management of the producer, and where 
appropriate, to other persons or entities, to 
promote compliance with subparagraph 
(B). 
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‘‘(D) BIANNUAL
REPORT.—The biannual 
reports referred to in subparagraph (C)(i) are a 
report, by the entity operating the TAICNAR 
Program, that is published (and available to the 
public in a readily accessible manner) on a bi-
annual basis, beginning 6 months after Haiti 
implements the TAICNAR Program under this 
paragraph, covering the preceding 6-month pe-
riod, and that includes the following: 
‘‘(i) The name of each producer listed 
in the registry described in paragraph 
(2)(B)(i) that has been identified as having 
met the conditions under subparagraph 
(B). 
‘‘(ii) The name of each producer listed 
in the registry described in paragraph 
(2)(B)(i) that has been identified as having 
deficiencies with respect to the conditions 
under subparagraph (B), and has failed to 
remedy such deficiencies. 
‘‘(iii) For each producer listed under 
clause (ii)— 
‘‘(I) a description of the defi-
ciencies found to exist and the specific 
suggestions for remediating such defi-
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ciencies made by the entity operating 
the TAICNAR Program; 
‘‘(II) a description of the efforts 
by the producer to remediate the defi-
ciencies, including a description of as-
sistance provided by any entity to as-
sist in such remediation; and 
‘‘(III) with respect to deficiencies 
that have not been remediated, the 
amount of time that has elapsed since 
the deficiencies were first identified in 
a report under this subparagraph. 
‘‘(iv) For each producer identified as 
having deficiencies with respect to the con-
ditions described under subparagraph (B) 
in a prior report under this subparagraph, 
a description of the progress made in re-
mediating such deficiencies since the sub-
mission of the prior report, and an assess-
ment of whether any aspect of such defi-
ciencies persists. 
‘‘(E) CAPACITY
BUILDING.—The assist-
ance to the Government of Haiti referred to in 
subparagraph (A)(ii) shall include programs— 
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‘‘(i) to review the labor laws and regu-
lations of Haiti and to develop and imple-
ment strategies for bringing the laws and 
regulations into conformity with core labor 
standards; 
‘‘(ii) to develop additional strategies 
for facilitating protection of core labor 
standards and providing acceptable condi-
tions of work with respect to minimum 
wages, hours of work, and occupational 
safety and health, including through legal, 
regulatory, and institutional reform; 
‘‘(iii) to increase awareness of worker 
rights, including under core labor stand-
ards and national labor laws; 
‘‘(iv) to promote consultation and co-
operation between government representa-
tives, employers, worker representatives, 
and United States importers on matters 
relating to core labor standards and na-
tional labor laws; 
‘‘(v) to assist the Labor Ombudsman 
appointed pursuant to paragraph (2) in es-
tablishing and coordinating operation of 
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the committee described in paragraph 
(2)(B)(v); 
‘‘(vi) to assist worker representatives 
in more fully and effectively advocating on 
behalf of their members; and 
‘‘(vii) to provide on-the-job training 
and technical assistance to labor inspec-
tors, judicial officers, and other relevant 
personnel to build their capacity to enforce 
national labor laws and resolve labor dis-
putes. 
‘‘(4) COMPLIANCE
WITH
ELIGIBILITY
CRI-
TERIA.— 
‘‘(A) COUNTRY COMPLIANCE WITH WORK-
ER RIGHTS ELIGIBILITY CRITERIA.—In making 
a determination of whether Haiti is meeting the 
requirement 
set 
forth 
in 
subsection 
(d)(1)(A)(vi) relating to internationally recog-
nized worker rights, the President shall con-
sider the reports produced under paragraph 
(3)(D). 
‘‘(B) PRODUCER ELIGIBILITY.— 
‘‘(i) 
IDENTIFICATION
OF
PRO-
DUCERS.—Beginning in the second cal-
endar year after the President makes the 
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clause (ii) to articles of a producer, deter-
mines that such producer is complying 
with core labor standards and with the 
labor laws of Haiti that directly relate to 
and are consistent with core labor stand-
ards, the President shall reinstate the ap-
plication of preferential treatment under 
subsection (b) to the articles of the pro-
ducer. 
‘‘(iv) CONSIDERATION OF REPORTS.— 
In making the identification under clause 
(i) and the determination under clause 
(iii), the President shall consider the re-
ports made available under paragraph 
(3)(D). 
‘‘(5) REPORTS BY THE PRESIDENT.— 
‘‘(A) IN
GENERAL.—Not later than one 
year after the date of the enactment of the Hai-
tian Hemispheric Opportunity through Partner-
ship Encouragement Act of 2008, and annually 
thereafter, the President shall transmit to the 
appropriate congressional committees a report 
on the implementation of this subsection during 
the preceding 1-year period. 
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‘‘(B) MATTERS TO BE INCLUDED.—Each 
report required by subparagraph (A) shall in-
clude the following: 
‘‘(i) An explanation of the efforts of 
Haiti, the President, and the International 
Labor Organization to carry out this sub-
section. 
‘‘(ii) A summary of each report pro-
duced under paragraph (3)(D) during the 
preceding 1-year period and a summary of 
the findings contained in such report. 
‘‘(iii) Identifications made under para-
graph (4)(B)(i) and determinations made 
under paragraph (4)(B)(iii). 
‘‘(6) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to carry out 
this subsection the sum of $10,000,000 for the pe-
riod beginning on October 1, 2008, and ending on 
September 30, 2013.’’. 
SEC. 15404. PETITION PROCESS. 
Section 213A(d) of the Caribbean Basin Economic 
Recovery Act (19 U.S.C. 2703A(d)) is amended by adding 
at the end the following new paragraph: 
‘‘(4) PETITION PROCESS.—Any interested party 
may file a request to have the status of Haiti re-
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viewed with respect to the eligibility requirements 
listed in paragraph (1), and the President shall pro-
vide for this purpose the same procedures as those 
that are provided for reviewing the status of eligible 
beneficiary developing countries with respect to the 
designation criteria listed in subsections (b) and (c) 
of section 502 of the Trade Act of 1974 (19 U.S.C. 
2642 (b) and (c)).’’. 
SEC. 15405. CONDITIONS REGARDING ENFORCEMENT OF 
CIRCUMVENTION. 
Section 213A(f) of the Caribbean Basin Economic 
Recovery Act, as redesignated by section 15403(2) of this 
Act, is amended by adding at the end the following new 
paragraph: 
‘‘(3) LIMITATION
ON
GOODS
SHIPPED
FROM 
THE DOMINICAN REPUBLIC.— 
‘‘(A) LIMITATION.—Notwithstanding sub-
section (a)(5), relating to the definition of ‘im-
ported directly from Haiti or the Dominican 
Republic’, articles described in subsection (b) 
that are shipped from the Dominican Republic, 
directly or through the territory of an inter-
mediate country, whether or not such articles 
undergo processing in the Dominican Republic, 
shall not be considered to be ‘imported directly 
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from Haiti or the Dominican Republic’ until the 
President certifies to the Congress that Haiti 
and the Dominican Republic have developed 
procedures to prevent unlawful transshipment 
of the articles and the use of counterfeit docu-
ments related to the importation of the articles 
into the United States. 
‘‘(B) TECHNICAL
AND
OTHER
ASSIST-
ANCE.—The Commissioner responsible for U.S. 
Customs and Border Protection shall provide 
technical and other assistance to Haiti and the 
Dominican Republic to develop expeditiously the 
procedures described in subparagraph (A).’’. 
SEC. 15406. PRESIDENTIAL PROCLAMATION AUTHORITY. 
The President may exercise the authority under sec-
tion 604 of the Trade Act of 1974 to proclaim such modi-
fications to the Harmonized Tariff Schedule of the United 
States as may be necessary to carry out this part and the 
amendments made by this part. 
SEC. 15407. REGULATIONS AND PROCEDURES. 
The President shall issue such regulations as may be 
necessary to carry out the amendments made by sections 
15402, 15403, and 15404. Regulations to carry out the 
amendments made by section 15402 shall be issued not 
later than September 30, 2008. The Secretary of Com-
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merce shall issue such procedures as may be necessary to 
carry out the amendment made by section 15402(d) not 
later than September 30, 2008. 
SEC. 15408. EXTENSION OF CBTPA. 
Section 213(b) of the Caribbean Basin Economic Re-
covery Act (19 U.S.C. 2703(b)) is amended— 
(1) in paragraph (2)(A)— 
(A) in clause (iii)— 
(i) in subclause (II)(cc), by striking 
‘‘2008’’ and inserting ‘‘2010’’; and 
(ii) in subclause (IV)(dd), by striking 
‘‘2008’’ and inserting ‘‘2010’’; and 
(B) in clause (iv)(II), by striking ‘‘6’’ and 
inserting ‘‘8’’; and 
(2) in paragraph (5)(D)— 
(A) in clause (i), by striking ‘‘2008’’ and 
inserting ‘‘2010’’; and 
(B) in clause (ii), by striking ‘‘108(b)(5)’’ 
and inserting ‘‘section 108(b)(5)’’. 
SEC. 15409. SENSE OF CONGRESS ON INTERPRETATION OF 
TEXTILE AND APPAREL PROVISIONS FOR 
HAITI. 
It is the sense of the Congress that the executive 
branch, particularly the Committee for the Implementa-
tion of Textile Agreements (CITA), U.S. Customs and 
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Border Protection of the Department of Homeland Secu-
rity, and the Department of Commerce, should interpret, 
implement, and enforce the provisions of section 213A(b) 
of the Caribbean Basin Economic Recovery Act, as 
amended by section 15402 of this Act, relating to pref-
erential treatment of textile and apparel articles, broadly 
in order to expand trade by maximizing opportunities for 
imports of articles eligible for preferential treatment under 
such section 213A(b). 
SEC. 15410. SENSE OF CONGRESS ON TRADE MISSION TO 
HAITI. 
It is the sense of the Congress that the Secretary of 
Commerce, in coordination with the United States Trade 
Representative, the Secretary of State, and the Commis-
sioner responsible for U.S. Customs and Border Protec-
tion of the Department of Homeland Security, should lead 
a trade mission to Haiti, within 6 months after the date 
of the enactment of this Act, to promote trade between 
the United States and Haiti, to promote new economic op-
portunities afforded under the amendments made by sec-
tion 15402 of this Act, and to help educate United States 
and Haitian business concerns about such opportunities. 
SEC. 15411. SENSE OF CONGRESS ON VISA SYSTEMS. 
It is the sense of the Congress that Haiti, and other 
countries that receive preferences under trade preference 
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programs of the United States that require effective visa 
systems to prevent transshipment, should ensure that 
monetary compensation for such visas is not required be-
yond the costs of processing the visa, including ensuring 
that such monetary compensation does not violate an ap-
plicable system to combat corruption and bribery. 
SEC. 15412. EFFECTIVE DATE. 
(a) IN GENERAL.—Except as provided in subsection 
(b), this part and the amendments made by this part shall 
take effect on the date of the enactment of this Act. 
(b) EXCEPTION.—The amendments made by section 
15402 shall take effect on October 1, 2008, and shall 
apply to articles entered, or withdrawn from warehouse 
for consumption, on or after that date. 
PART II—MISCELLANEOUS TRADE PROVISIONS 
SEC. 15421. UNUSED MERCHANDISE DRAWBACK. 
(a) IN GENERAL.—Section 313(j)(2) of the Tariff 
Act of 1930 (19 U.S.C. 1313(j)(2)) is amended by adding 
at the end the following: ‘‘For purposes of subparagraph 
(A) of this paragraph, wine of the same color having a 
price variation not to exceed 50 percent between the im-
ported wine and the exported wine shall be deemed to be 
commercially interchangeable.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to claims filed for 
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drawback under section 313(j)(2) of the Tariff Act of 
1930 on or after the date of the enactment of this Act. 
SEC. 15422. REQUIREMENTS RELATING TO DETERMINA-
TION OF TRANSACTION VALUE OF IMPORTED 
MERCHANDISE. 
(a) REQUIREMENT ON IMPORTERS.— 
(1) IN
GENERAL.—Pursuant to sections 484 
and 485 of the Tariff Act of 1930 (19 U.S.C. 1484 
and 1485), the Commissioner responsible for U.S. 
Customs and Border Protection shall require each 
importer of merchandise to provide to U.S. Customs 
and Border Protection at the time of entry of the 
merchandise the information described in paragraph 
(2). 
(2) INFORMATION REQUIRED.—The information 
referred to in paragraph (1) is a declaration as to 
whether the transaction value of the imported mer-
chandise is determined on the basis of the price paid 
by the buyer in the first or earlier sale occurring 
prior to introduction of the merchandise into the 
United States. 
(3) EFFECTIVE
DATE.—The requirement to 
provide information under this subsection shall be 
effective for the 1-year period beginning 90 days 
after the date of the enactment of this Act. 
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(b) REPORT TO INTERNATIONAL TRADE COMMIS-
SION.— 
(1) IN GENERAL.—The Commissioner respon-
sible for U.S. Customs and Border Protection shall 
submit to the United States International Trade 
Commission on a monthly basis for the 1-year period 
specified in subsection (a)(3) a report on the infor-
mation provided by importers under subsection 
(a)(2) during the preceding month. The report re-
quired under this paragraph shall be submitted in a 
form agreed upon between U.S. Customs and Border 
Protection and the United States International 
Trade Commission. 
(2) MATTERS TO BE INCLUDED.—The report 
required under paragraph (1) shall include— 
(A) the number of importers that declare 
the transaction value of the imported merchan-
dise is determined on the basis of the method 
described in subsection (a)(2); 
(B) the tariff classification of such im-
ported merchandise under the Harmonized Tar-
iff Schedule of the United States; and 
(C) the transaction value of such imported 
merchandise. 
(c) REPORT TO CONGRESS.— 
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(1) IN GENERAL.—Not later than 90 days after 
the submission of the final report under subsection 
(b), the United States International Trade Commis-
sion shall submit to the appropriate congressional 
committees a report on the information contained in 
all reports submitted under subsection (b). 
(2) MATTERS TO BE INCLUDED.—The report 
required under paragraph (1) shall include— 
(A) the aggregate number of importers 
that declare the transaction value of the im-
ported merchandise is determined on the basis 
of the method described in subsection (a)(2), in-
cluding a description of the frequency of the use 
of such method; 
(B) the tariff classification of such im-
ported merchandise under the Harmonized Tar-
iff Schedule of the United States on an aggre-
gate basis, including an analysis of the tariff 
classification of such imported merchandise on 
a sectoral basis; 
(C) the aggregate transaction value of such 
imported merchandise, including an analysis of 
the transaction value of such imported mer-
chandise on a sectoral basis; and 
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(D) the aggregate transaction value of all 
merchandise imported into the United States 
during the 1-year period specified in subsection 
(a)(3). 
(d) SENSE OF CONGRESS REGARDING PROHIBITION 
ON PROPOSED INTERPRETATION OF THE TERM ‘‘SOLD 
FOR EXPORTATION TO THE UNITED STATES’’.— 
(1) IN GENERAL.—It is the sense of Congress 
that the Commissioner responsible for U.S. Customs 
and Border Protection should not implement a 
change to U.S. Customs and Border Protection’s in-
terpretation (as such interpretation is in effect on 
the date of the enactment of this Act) of the term 
‘‘sold for exportation to the United States’’, as de-
scribed in section 402(b) of the Tariff Act of 1930 
(19 U.S.C. 1401a(b)), for purposes of applying the 
transaction value of the imported merchandise in a 
series of sales, before January 1, 2011. 
(2) EXCEPTION.—It is the sense of Congress 
that beginning on January 1, 2011, the Commis-
sioner responsible for U.S. Customs and Border 
Protection may propose to change or change U.S. 
Customs and Border Protection’s interpretation of 
the term ‘‘sold for exportation to the United 
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States’’, as described in paragraph (1), only if U.S. 
Customs and Border Protection— 
(A) consults with, and provides notice to, 
the appropriate congressional committees— 
(i) not less than 180 days prior to 
proposing a change; and 
(ii) not less than 90 days prior to 
publishing a change; 
(B) consults with, provides notice to, and 
takes into consideration views expressed by, the 
Commercial Operations Advisory Committee— 
(i) not less than 120 days prior to 
proposing a change; and 
(ii) not less than 60 days prior to 
publishing a change; and 
(C) receives the explicit approval of the 
Secretary of the Treasury prior to publishing a 
change. 
(3) CONSIDERATION OF INTERNATIONAL TRADE 
COMMISSION REPORT.—It is the sense of Congress 
that prior to publishing a change to U.S. Customs 
and Border Protection’s interpretation (as such in-
terpretation is in effect on the date of the enactment 
of this Act) of the term ‘‘sold for exportation to the 
United States’’, as described in section 402(b) of the 
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Tariff Act of 1930 (19 U.S.C. 1401a(b)), for pur-
poses of applying the transaction value of the im-
ported merchandise in a series of sales, the Commis-
sioner responsible for U.S. Customs and Border 
Protection should take into consideration the mat-
ters included in the report prepared by the United 
States International Trade Commission under sub-
section (c). 
(e) DEFINITIONS.—In this section: 
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means the Committee on Ways and Means 
of the House of Representatives and the Committee 
on Finance of the Senate. 
(2) COMMERCIAL OPERATIONS ADVISORY COM-
MITTEE.—The term ‘‘Commercial Operations Advi-
sory Committee’’ means the Advisory Committee es-
tablished pursuant to section 9503(c) of the Omni-
bus Budget Reconciliation Act of 1987 (19 U.S.C. 
2071 note) or any successor committee. 
(3) IMPORTER.—The term ‘‘importer’’ means 
one of the parties qualifying as an ‘‘importer of 
record’’ under section 484(a)(2)(B) in the Tariff Act 
of 1930 (19 U.S.C. 1484(a)(2)(B)). 
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(4) TRANSACTION
VALUE
OF
THE
IMPORTED 
MERCHANDISE.—The term ‘‘transaction value of the 
imported merchandise’’ has the meaning described in 
section 402(b) of the Tariff Act of 1930 (19 U.S.C. 
1401a(b)). 
Passed the House of Representatives May 22, 2008. 
Attest: 
Clerk. 
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110TH CONGRESS 
2D SESSION 
H. R. 6124 
AN ACT 
To provide for the continuation of agricultural and 
other programs of the Department of Agriculture 
through fiscal year 2012, and for other purposes. 
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