442 
AMDT. NO. 570 
SEC. 1007. SUSPENSION OF TAX ON PORTION OF UNEM-
PLOYMENT COMPENSATION. 
(a) IN GENERAL.—Section 85 of the Internal Rev-
enue Code of 1986 (relating to unemployment compensa-
tion) is amended by adding at the end the following new 
subsection: 
‘‘(c) SPECIAL RULE FOR 2009.—In the case of any 
taxable year beginning in 2009, gross income shall not in-
clude so much of the unemployment compensation received 
by an individual as does not exceed $2,400.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
SEC. 1008. ABOVE-THE-LINE DEDUCTION FOR INTEREST ON 
INDEBTEDNESS WITH RESPECT TO THE PUR-
CHASE OF CERTAIN MOTOR VEHICLES. 
(a) IN GENERAL.—Paragraph (2) of section 163(h) 
of the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (E), 
(2) by striking the period at the end of sub-
paragraph (F) and inserting ‘‘, and’’, and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(G) any qualified motor vehicle interest 
(within the meaning of paragraph (5)).’’. 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00442
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
443 
AMDT. NO. 570 
(b) QUALIFIED MOTOR VEHICLE INTEREST.—Sec-
tion 163(h) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new para-
graph: 
‘‘(5) QUALIFIED MOTOR VEHICLE INTEREST.— 
For purposes of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
motor vehicle interest’ means any interest which 
is paid or accrued during the taxable year on 
any indebtedness which— 
‘‘(i) is incurred after November 12, 
2008, and before January 1, 2010, in ac-
quiring any qualified motor vehicle of the 
taxpayer, and 
‘‘(ii) is secured by such qualified 
motor vehicle. 
Such term also includes any indebtedness se-
cured by such qualified motor vehicle resulting 
from the refinancing of indebtedness meeting 
the requirements of the preceding sentence (or 
this sentence); but only to the extent the 
amount of the indebtedness resulting from such 
refinancing does not exceed the amount of the 
refinanced indebtedness. 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00443
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
444 
AMDT. NO. 570 
‘‘(B) DOLLAR
LIMITATION.—The aggre-
gate amount of indebtedness treated as de-
scribed in subparagraph (A) for any period 
shall not exceed $49,500 ($24,750 in the case 
of a separate return by a married individual). 
‘‘(C) INCOME
LIMITATION.—The amount 
otherwise treated as interest under subpara-
graph (A) for any taxable year (after the appli-
cation of subparagraph (B)) shall be reduced 
(but not below zero) by the amount which bears 
the same ratio to the amount which is so treat-
ed as— 
‘‘(i) the excess (if any) of— 
‘‘(I) the taxpayer’s modified ad-
justed gross income for such taxable 
year, over 
‘‘(II) $125,000 ($250,000 in the 
case of a joint return), bears to 
‘‘(ii) $10,000. 
For purposes of the preceding sentence, the 
term ‘modified adjusted gross income’ means 
the adjusted gross income of the taxpayer for 
the taxable year increased by any amount ex-
cluded from gross income under section 911, 
931, or 933. 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00444
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
445 
AMDT. NO. 570 
‘‘(D) QUALIFIED
MOTOR
VEHICLE.—The 
term ‘qualified motor vehicle’ means a pas-
senger automobile (within the meaning of sec-
tion 30B(h)(3)) or a light truck (within the 
meaning of such section)— 
‘‘(i) which is acquired for use by the 
taxpayer and not for resale after November 
12, 2008, and before January 1, 2010, 
‘‘(ii) the original use of which com-
mences with the taxpayer, and 
‘‘(iii) which has a gross vehicle weight 
rating of not more than 8,500 pounds.’’. 
(c) DEDUCTION ALLOWED ABOVE-THE-LINE.—Sec-
tion 62(a) of the Internal Revenue Code of 1986 is amend-
ed by inserting after paragraph (21) the following new 
paragraph: 
‘‘(22) QUALIFIED
MOTOR
VEHICLE
INTER-
EST.—The deduction allowed under section 163 by 
reason of subsection (h)(2)(G) thereof.’’. 
(d) REPORTING OF QUALIFIED MOTOR VEHICLE IN-
TEREST.— 
(1) IN GENERAL.—Subpart B of part III of 
subchapter A of chapter 61 of the Internal Revenue 
Code of 1986 is amended by adding at the end the 
following new section: 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00445
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
446 
AMDT. NO. 570 
‘‘SEC. 6050X. RETURNS RELATING TO QUALIFIED MOTOR 
VEHICLE INTEREST RECEIVED IN TRADE OR 
BUSINESS FROM INDIVIDUALS. 
‘‘(a) QUALIFIED MOTOR VEHICLE INTEREST.—Any 
person— 
‘‘(1) who is engaged in a trade or business, and 
‘‘(2) who, in the course of such trade or busi-
ness, receives from any individual interest aggre-
gating $600 or more for any calendar year on any 
indebtedness secured by a qualified motor vehicle (as 
defined in section 163(h)(5)(D)), 
shall make the return described in subsection (b) with re-
spect to each individual from whom such interest was re-
ceived at such time as the Secretary may by regulations 
prescribe. 
‘‘(b) FORM AND MANNER OF RETURNS.—A return 
is described in this subsection if such return— 
‘‘(1) is in such form as the Secretary may pre-
scribe, 
‘‘(2) contains— 
‘‘(A) the name and address of the indi-
vidual from whom the interest described in sub-
section (a)(2) was received, 
‘‘(B) the amount of such interest received 
for the calendar year, and 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00446
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
447 
AMDT. NO. 570 
‘‘(C) such other information as the Sec-
retary may prescribe. 
‘‘(c) APPLICATION TO GOVERNMENTAL UNITS.—For 
purposes of subsection (a)— 
‘‘(1) TREATED AS PERSONS.—The term ‘per-
son’ includes any governmental unit (and any agency 
or instrumentality thereof). 
‘‘(2) SPECIAL RULES.—In the case of a govern-
mental unit or any agency or instrumentality there-
of— 
‘‘(A) subsection (a) shall be applied with-
out regard to the trade or business requirement 
contained therein, and 
‘‘(B) any return required under subsection 
(a) shall be made by the officer or employee ap-
propriately designated for the purpose of mak-
ing such return. 
‘‘(d) STATEMENTS TO BE FURNISHED TO INDIVID-
UALS WITH RESPECT TO WHOM INFORMATION IS RE-
QUIRED.—Every person required to make a return under 
subsection (a) shall furnish to each individual whose name 
is required to be set forth in such return a written state-
ment showing— 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00447
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
448 
AMDT. NO. 570 
‘‘(1) the name, address, and phone number of 
the information contact of the person required to 
make such return, and 
‘‘(2) the aggregate amount of interest described 
in subsection (a)(2) received by the person required 
to make such return from the individual to whom 
the statement is required to be furnished. 
The written statement required under the preceding sen-
tence shall be furnished on or before January 31 of the 
year following the calendar year for which the return 
under subsection (a) was required to be made. 
‘‘(e) RETURNS WHICH WOULD BE REQUIRED TO BE 
MADE BY 2 OR MORE PERSONS.—Except to the extent 
provided in regulations prescribed by the Secretary, in the 
case of interest received by any person on behalf of an-
other person, only the person first receiving such interest 
shall be required to make the return under subsection 
(a).’’. 
(2) AMENDMENTS RELATING TO PENALTIES.— 
(A) Section 6721(e)(2)(A) of such Code is 
amended by striking ‘‘or 6050L’’ and inserting 
‘‘6050L, or 6050X’’. 
(B) Section 6722(c)(1)(A) of such Code is 
amended by striking ‘‘or 6050L(c)’’ and insert-
ing ‘‘6050L(c), or 6050X(d)’’. 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00448
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
450 
AMDT. NO. 570 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
SEC. 1009. ABOVE-THE-LINE DEDUCTION FOR STATE SALES 
TAX AND EXCISE TAX ON THE PURCHASE OF 
CERTAIN MOTOR VEHICLES. 
(a) IN GENERAL.—Subsection (a) of section 164 of 
the Internal Revenue Code of 1986 is amended by insert-
ing after paragraph (5) the following new paragraph: 
‘‘(6) Qualified motor vehicle taxes.’’. 
(b) QUALIFIED
MOTOR
VEHICLE
TAXES.—Sub-
section (b) of section 164 of the Internal Revenue Code 
of 1986 is amended by adding at the end the following 
new paragraph: 
‘‘(6) QUALIFIED MOTOR VEHICLE TAXES.— 
‘‘(A) IN GENERAL.—For purposes of this 
section, the term ‘qualified motor vehicle taxes’ 
means any State or local sales or excise tax im-
posed on the purchase of a qualified motor vehi-
cle (as defined in section 163(h)(5)(D)). 
‘‘(B) DOLLAR LIMITATION.—The amount 
taken into account under subparagraph (A) for 
any taxable year shall not exceed $49,500 
($24,750 in the case of a separate return by a 
married individual). 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00450
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
451 
AMDT. NO. 570 
‘‘(C) INCOME
LIMITATION.—The amount 
otherwise taken into account under subpara-
graph (A) (after the application of subpara-
graph (B)) for any taxable year shall be re-
duced (but not below zero) by the amount 
which bears the same ratio to the amount which 
is so treated as— 
‘‘(i) the excess (if any) of— 
‘‘(I) the taxpayer’s modified ad-
justed gross income for such taxable 
year, over 
‘‘(II) $125,000 ($250,000 in the 
case of a joint return), bears to 
‘‘(ii) $10,000. 
For purposes of the preceding sentence, the 
term ‘modified adjusted gross income’ means 
the adjusted gross income of the taxpayer for 
the taxable year increased by any amount ex-
cluded from gross income under section 911, 
931, or 933. 
‘‘(D) QUALIFIED MOTOR VEHICLE TAXES 
NOT INCLUDED IN COST OF ACQUIRED PROP-
ERTY.—The last sentence of subsection (a) 
shall not apply to any qualified motor vehicle 
taxes. 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00451
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
452 
AMDT. NO. 570 
‘‘(E) 
COORDINATION
WITH
GENERAL 
SALES TAX.—This paragraph shall not apply in 
the case of a taxpayer who makes an election 
under paragraph (5) for the taxable year.’’. 
(c) CONFORMING AMENDMENTS.—Paragraph (5) of 
section 163(h) of the Internal Revenue Code of 1986, as 
added by section 1, is amended— 
(1) by adding at the end the following new sub-
paragraph: 
‘‘(E) EXCLUSION.—If the indebtedness de-
scribed in subparagraph (A) includes the 
amounts of any State or local sales or excise 
taxes paid or accrued by the taxpayer in con-
nection with the acquisition of a qualified motor 
vehicle, the aggregate amount of such indebted-
ness taken into account under such subpara-
graph shall be reduced, but not below zero, by 
the amount of any such taxes for which a de-
duction is allowed under section 164(a) by rea-
son of paragraph (6) thereof.’’, and 
(2) by inserting ‘‘, after the application of sub-
paragraph (E),’’ after ‘‘for any period’’ in subpara-
graph (B). 
(d) DEDUCTION ALLOWED ABOVE-THE-LINE.—Sec-
tion 62(a) of the Internal Revenue Code of 1986, as 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00452
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
453 
AMDT. NO. 570 
amended by section 1, is amended by inserting after para-
graph (22) the following new paragraph: 
‘‘(23) QUALIFIED
MOTOR
VEHICLE
TAXES.— 
The deduction allowed under section 164 by reason 
of subsection (a)(6) thereof.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
PART II—ALTERNATIVE MINIMUM TAX RELIEF 
SEC. 1011. EXTENSION OF ALTERNATIVE MINIMUM TAX RE-
LIEF 
FOR 
NONREFUNDABLE 
PERSONAL 
CREDITS. 
(a) IN GENERAL.—Paragraph (2) of section 26(a) 
(relating to special rule for taxable years 2000 through 
2008) is amended— 
(1) by striking ‘‘or 2008’’ and inserting ‘‘2008, 
or 2009’’, and 
(2) by striking ‘‘2008’’ in the heading thereof 
and inserting ‘‘2009’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00453
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
454 
AMDT. NO. 570 
SEC. 1012. EXTENSION OF INCREASED ALTERNATIVE MIN-
IMUM TAX EXEMPTION AMOUNT. 
(a) IN GENERAL.—Paragraph (1) of section 55(d) 
(relating to exemption amount) is amended— 
(1) by striking ‘‘($69,950 in the case of taxable 
years beginning in 2008)’’ in subparagraph (A) and 
inserting ‘‘($70,950 in the case of taxable years be-
ginning in 2009)’’, and 
(2) by striking ‘‘($46,200 in the case of taxable 
years beginning in 2008)’’ in subparagraph (B) and 
inserting ‘‘($46,700 in the case of taxable years be-
ginning in 2009)’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
Subtitle B—Energy Incentives 
PART I—RENEWABLE ENERGY INCENTIVES 
SEC. 1101. EXTENSION OF CREDIT FOR ELECTRICITY PRO-
DUCED 
FROM 
CERTAIN 
RENEWABLE 
RE-
SOURCES. 
(a) IN GENERAL.—Subsection (d) of section 45 is 
amended— 
(1) by striking ‘‘2010’’ in paragraph (1) and in-
serting ‘‘2013’’, 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00454
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
455 
AMDT. NO. 570 
(2) by striking ‘‘2011’’ each place it appears in 
paragraphs (2), (3), (4), (6), (7) and (9) and insert-
ing ‘‘2014’’, and 
(3) by striking ‘‘2012’’ in paragraph (11)(B) 
and inserting ‘‘2014’’. 
(b) TECHNICAL AMENDMENT.—Paragraph (5) of 
section 45(d) is amended by striking ‘‘and before’’ and 
all that follows and inserting ‘‘ and before October 3, 
2008.’’. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
subsection (a) shall apply to property placed in serv-
ice after the date of the enactment of this Act. 
(2) TECHNICAL AMENDMENT.—The amendment 
made by subsection (b) shall take effect as if in-
cluded in section 102 of the Energy Improvement 
and Extension Act of 2008. 
SEC. 1102. ELECTION OF INVESTMENT CREDIT IN LIEU OF 
PRODUCTION CREDIT. 
(a) IN GENERAL.—Subsection (a) of section 48 is 
amended by adding at the end the following new para-
graph: 
‘‘(5) ELECTION TO TREAT QUALIFIED FACILI-
TIES AS ENERGY PROPERTY.— 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00455
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
457 
AMDT. NO. 570 
(7), (9), or (11) of section 45(d) if such fa-
cility is placed in service in 2009, 2010, 
2011, 2012, or 2013.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to facilities placed in service after 
December 31, 2008. 
SEC. 1103. REPEAL OF CERTAIN LIMITATIONS ON CREDIT 
FOR RENEWABLE ENERGY PROPERTY. 
(a) REPEAL OF LIMITATION ON CREDIT FOR QUALI-
FIED SMALL WIND ENERGY PROPERTY.—Paragraph (4) 
of section 48(c) is amended by striking subparagraph (B) 
and by redesignating subparagraphs (C) and (D) as sub-
paragraphs (B) and (C). 
(b) REPEAL
OF LIMITATION
ON PROPERTY FI-
NANCED BY SUBSIDIZED ENERGY FINANCING.— 
(1) IN GENERAL.—Section 48(a)(4) is amended 
by adding at the end the following new subpara-
graph: 
‘‘(D) 
TERMINATION.—This 
paragraph 
shall not apply to periods after December 31, 
2008, under rules similar to the rules of section 
48(m) (as in effect on the day before the date 
of the enactment of the Revenue Reconciliation 
Act of 1990).’’. 
(2) CONFORMING AMENDMENTS.— 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00457
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
458 
AMDT. NO. 570 
(A) Section 25C(e)(1) is amended by strik-
ing ‘‘(8), and (9)’’ and inserting ‘‘and (8)’’. 
(B) Section 25D(e) is amended by striking 
paragraph (9). 
(C) Section 48A(b)(2) is amended by in-
serting ‘‘(without regard to subparagraph (D) 
thereof)’’ after ‘‘section 48(a)(4)’’. 
(D) Section 48B(b)(2) is amended by in-
serting ‘‘(without regard to subparagraph (D) 
thereof)’’ after ‘‘section 48(a)(4)’’. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendment made by this section shall 
apply to periods after December 31, 2008, under 
rules similar to the rules of section 48(m) of the In-
ternal Revenue Code of 1986 (as in effect on the day 
before the date of the enactment of the Revenue 
Reconciliation Act of 1990). 
(2) CONFORMING AMENDMENTS.—The amend-
ments made by subsection (b)(2) shall apply to tax-
able years beginning after December 31, 2008. 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00458
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
459 
AMDT. NO. 570 
PART II—INCREASED ALLOCATIONS OF NEW 
CLEAN RENEWABLE ENERGY BONDS AND 
QUALIFIED ENERGY CONSERVATION BONDS 
SEC. 1111. INCREASED LIMITATION ON ISSUANCE OF NEW 
CLEAN RENEWABLE ENERGY BONDS. 
Subsection (c) of section 54C is amended by adding 
at the end the following new paragraph: 
‘‘(4) ADDITIONAL
LIMITATION.—The national 
new clean renewable energy bond limitation shall be 
increased by $1,600,000,000. Such increase shall be 
allocated by the Secretary consistent with the rules 
of paragraphs (2) and (3).’’. 
SEC. 1112. INCREASED LIMITATION ON ISSUANCE OF 
QUALIFIED ENERGY CONSERVATION BONDS. 
(a) IN GENERAL.—Section 54D(d) is amended by 
striking ‘‘800,000,000’’ and inserting ‘‘$3,200,000,000’’. 
(b) CLARIFICATION WITH RESPECT TO GREEN COM-
MUNITY PROGRAMS.—Clause (ii) of section 54D(f)(1)(A) 
is amended by inserting ‘‘(including the use of loans, 
grants, or other repayment mechanisms to implement such 
programs)’’ after ‘‘green community programs’’. 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00459
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
460 
AMDT. NO. 570 
PART III—ENERGY CONSERVATION INCENTIVES 
SEC. 1121. EXTENSION AND MODIFICATION OF CREDIT FOR 
NONBUSINESS ENERGY PROPERTY. 
(a) IN GENERAL.—Section 25C is amended by strik-
ing subsections (a) and (b) and inserting the following new 
subsections: 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual, there shall be allowed as a credit against the tax 
imposed by this chapter for the taxable year an amount 
equal to 30 percent of the sum of— 
‘‘(1) the amount paid or incurred by the tax-
payer during such taxable year for qualified energy 
efficiency improvements, and 
‘‘(2) the amount of the residential energy prop-
erty expenditures paid or incurred by the taxpayer 
during such taxable year. 
‘‘(b) LIMITATION.—The aggregate amount of the 
credits allowed under this section for taxable years begin-
ning in 2009 and 2010 with respect to any taxpayer shall 
not exceed $1,500.’’. 
(b) MODIFICATIONS OF STANDARDS FOR ENERGY- 
EFFICIENT BUILDING PROPERTY.— 
(1) ELECTRIC
HEAT
PUMPS.—Subparagraph 
(B) of section 25C(d)(3) is amended to read as fol-
lows: 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00460
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
461 
AMDT. NO. 570 
‘‘(B) an electric heat pump which achieves 
the highest efficiency tier established by the 
Consortium for Energy Efficiency, as in effect 
on January 1, 2009.’’. 
(2) CENTRAL
AIR
CONDITIONERS.—Subpara-
graph (C) of section 25C(d)(3) is amended by strik-
ing ‘‘2006’’ and inserting ‘‘2009’’. 
(3) WATER
HEATERS.—Subparagraph (D) of 
section 25C(d)(3) is amended to read as follows: 
‘‘(E) a natural gas, propane, or oil water 
heater which has either an energy factor of at 
least 0.82 or a thermal efficiency of at least 90 
percent.’’. 
(4) WOOD STOVES.—Subparagraph (E) of sec-
tion 25C(d)(3) is amended by inserting ‘‘, as meas-
ured using a lower heating value’’ after ‘‘75 per-
cent’’. 
(c) MODIFICATIONS OF STANDARDS FOR OIL FUR-
NACES AND HOT WATER BOILERS.— 
(1) IN
GENERAL.—Paragraph (4) of section 
25C(d) is amended to read as follows: 
‘‘(4) QUALIFIED NATURAL GAS, PROPANE, AND 
OIL FURNACES AND HOT WATER BOILERS.— 
‘‘(A) QUALIFIED
NATURAL
GAS
FUR-
NACE.—The term ‘qualified natural gas fur-
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00461
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
462 
AMDT. NO. 570 
nace’ means any natural gas furnace which 
achieves an annual fuel utilization efficiency 
rate of not less than 95. 
‘‘(B) 
QUALIFIED
NATURAL
GAS
HOT 
WATER
BOILER.—The term ‘qualified natural 
gas hot water boiler’ means any natural gas hot 
water boiler which achieves an annual fuel utili-
zation efficiency rate of not less than 90. 
‘‘(C) QUALIFIED
PROPANE
FURNACE.— 
The term ‘qualified propane furnace’ means any 
propane furnace which achieves an annual fuel 
utilization efficiency rate of not less than 95. 
‘‘(D) QUALIFIED
PROPANE
HOT
WATER 
BOILER.—The term ‘qualified propane hot 
water boiler’ means any propane hot water boil-
er which achieves an annual fuel utilization effi-
ciency rate of not less than 90. 
‘‘(E) QUALIFIED
OIL
FURNACES.—The 
term ‘qualified oil furnace’ means any oil fur-
nace which achieves an annual fuel utilization 
efficiency rate of not less than 90. 
‘‘(F) QUALIFIED
OIL
HOT
WATER
BOIL-
ER.—The term ‘qualified oil hot water boiler’ 
means any oil hot water boiler which achieves 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00462
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
463 
AMDT. NO. 570 
an annual fuel utilization efficiency rate of not 
less than 90.’’. 
(2) CONFORMING AMENDMENT.—Clause (ii) of 
section 25C(d)(2)(A) is amended to read as follows: 
‘‘(ii) any qualified natural gas fur-
nace, qualified propane furnace, qualified 
oil furnace, qualified natural gas hot water 
boiler, qualified propane hot water boiler, 
or qualified oil hot water boiler, or’’. 
(d) MODIFICATIONS OF STANDARDS FOR QUALIFIED 
ENERGY EFFICIENCY IMPROVEMENTS.— 
(1) QUALIFICATIONS FOR EXTERIOR WINDOWS, 
DOORS, AND SKYLIGHTS.—Subsection (c) of section 
25C is amended by adding at the end the following 
new paragraph: 
‘‘(4) QUALIFICATIONS
FOR
EXTERIOR
WIN-
DOWS, DOORS, AND SKYLIGHTS.—Such term shall 
not include any component described in subpara-
graph (B) or (C) of paragraph (2) unless such com-
ponent is equal to or below a U factor of 0.30 and 
SHGC of 0.30.’’. 
(2) ADDITIONAL QUALIFICATION FOR INSULA-
TION.—Subparagraph (A) of section 25C(c)(2) is 
amended by inserting ‘‘and meets the prescriptive 
criteria for such material or system established by 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00463
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
464 
AMDT. NO. 570 
the 2009 International Energy Conservation Code, 
as such Code (including supplements) is in effect on 
the date of the enactment of the American Recovery 
and Reinvestment Tax Act of 2009’’ after ‘‘such 
dwelling unit’’. 
(e) EXTENSION.—Section 25C(g)(2) is amended by 
striking ‘‘December 31, 2009’’ and inserting ‘‘December 
31, 2010’’. 
(f) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to taxable years beginning after Decem-
ber 31, 2008. 
(2) EFFICIENCY
STANDARDS.—The amend-
ments made by paragraphs (1), (2), and (3) of sub-
section (b) and subsections (c) and (d) shall apply 
to property placed in service after December 31, 
2009. 
SEC. 1122. MODIFICATION OF CREDIT FOR RESIDENTIAL 
ENERGY EFFICIENT PROPERTY. 
(a) REMOVAL OF CREDIT LIMITATION FOR PROP-
ERTY PLACED IN SERVICE.— 
(1) IN
GENERAL.—Paragraph (1) of section 
25D(b) is amended to read as follows: 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00464
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
465 
AMDT. NO. 570 
‘‘(1) MAXIMUM CREDIT FOR FUEL CELLS.—In 
the case of any qualified fuel cell property expendi-
ture, the credit allowed under subsection (a) (deter-
mined without regard to subsection (c)) for any tax-
able year shall not exceed $500 with respect to each 
half kilowatt of capacity of the qualified fuel cell 
property (as defined in section 48(c)(1)) to which 
such expenditure relates.’’. 
(2) CONFORMING AMENDMENT.—Paragraph (4) 
of section 25D(e) is amended— 
(A) by striking all that precedes subpara-
graph (B) and inserting the following: 
‘‘(4) FUEL
CELL
EXPENDITURE
LIMITATIONS 
IN CASE OF JOINT OCCUPANCY.—In the case of any 
dwelling unit with respect to which qualified fuel cell 
property expenditures are made and which is jointly 
occupied and used during any calendar year as a 
residence by two or more individuals the following 
rules shall apply: 
‘‘(A) MAXIMUM EXPENDITURES FOR FUEL 
CELLS.—The maximum amount of such ex-
penditures which may be taken into account 
under subsection (a) by all such individuals 
with respect to such dwelling unit during such 
calendar year shall be $1,667 in the case of 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00465
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
466 
AMDT. NO. 570 
each half kilowatt of capacity of qualified fuel 
cell property (as defined in section 48(c)(1)) 
with respect to which such expenditures re-
late.’’, and 
(B) by striking subparagraph (C). 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
SEC. 1123. TEMPORARY INCREASE IN CREDIT FOR ALTER-
NATIVE FUEL VEHICLE REFUELING PROP-
ERTY. 
(a) IN GENERAL.—Section 30C(e) is amended by 
adding at the end the following new paragraph: 
‘‘(6) SPECIAL RULE FOR PROPERTY PLACED IN 
SERVICE
DURING
2009
AND
2010.—In the case of 
property placed in service in taxable years beginning 
after December 31, 2008, and before January 1, 
2011— 
‘‘(A) in the case of any such property 
which does not relate to hydrogen— 
‘‘(i) subsection (a) shall be applied by 
substituting ‘50 percent’ for ‘30 percent’, 
‘‘(ii) subsection (b)(1) shall be applied 
by substituting ‘$50,000’ for ‘$30,000’, 
and 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00466
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
467 
AMDT. NO. 570 
‘‘(iii) subsection (b)(2) shall be ap-
plied by substituting ‘$2,000’ for ‘$1,000’, 
and 
‘‘(B) in the case of any such property 
which relates to hydrogen, subsection (b)(1) 
shall be applied by substituting ‘$200,000’ for 
‘$30,000’.’’. 
(b) ENSURING CONSUMER ACCESSIBILITY TO AL-
TERNATIVE FUEL VEHICLE REFUELING PROPERTY IN 
THE
CASE
OF
ELECTRICITY.—Section 179(d)(3) is 
amended by striking subparagraph (B) and inserting the 
following: 
‘‘(B) for the recharging of motor vehicles 
propelled by electricity, but only if— 
‘‘(i) the property complies with the 
Society of Automotive Engineers’ connec-
tion standards, 
‘‘(ii) the property provides for non-re-
strictive access for charging and for pay-
ment interoperability with other systems, 
and 
‘‘(iii) the property— 
‘‘(I) is located on property owned 
by the taxpayer, or 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00467
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
468 
AMDT. NO. 570 
‘‘(II) is located on property 
owned by another person, is placed in 
service with the permission of such 
other person, and is fully maintained 
by the taxpayer.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
SEC. 1124. RECOVERY PERIOD FOR DEPRECIATION OF 
SMART METERS. 
(a) TEMPORARY 5-YEAR RECOVERY PERIOD.— 
(1) IN GENERAL.—Subparagraph (B) of section 
168(e)(3) is amended by striking ‘‘and’’ at the end 
of clause (vi), by striking the period at the end of 
clause (vii) and inserting ‘‘, and’’, and by adding at 
the end the following new clause: 
‘‘(viii) any qualified smart electric 
meter which is placed in service before 
January 1, 2011.’’. 
(2) CONFORMING AMENDMENT.—Clause (iii) of 
section 168(e)(3)(D) is amended by inserting ‘‘which 
is placed in service after December 31, 2010’’ after 
‘‘electric meter’’. 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00468
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
469 
AMDT. NO. 570 
(b) 
TECHNICAL
AMENDMENTS.—Paragraphs 
(18)(A)(ii) and (19)(A)(ii) of section 168(i) are each 
amended by striking ‘‘16 years’’ and inserting ‘‘10 years’’. 
(c) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to property placed in service after the 
date of the enactment of this Act. 
(2) TECHNICAL
AMENDMENT.—The amend-
ments made by subsection (b) shall take effect as if 
included in section 306 of the Energy Improvement 
and Extension Act of 2008. 
PART IV—ENERGY RESEARCH INCENTIVES 
SEC. 1131. INCREASED RESEARCH CREDIT FOR ENERGY RE-
SEARCH. 
(a) IN GENERAL.—Section 41 is amended by redesig-
nating subsection (h) as subsection (i) and by inserting 
after subsection (g) the following new subsection: 
‘‘(h) ENERGY RESEARCH CREDIT.—In the case of 
any taxable year beginning in 2009 or 2010— 
‘‘(1) IN
GENERAL.—The credit determined 
under subsection (a)(1) shall be increased by 20 per-
cent of the qualified energy research expenses for 
the taxable year. 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00469
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
470 
AMDT. NO. 570 
‘‘(2) 
QUALIFIED
ENERGY
RESEARCH
EX-
PENSES.—For purposes of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
energy research expenses’ means so much of the 
taxpayer’s qualified research expenses as are re-
lated to the fields of fuel cells and battery tech-
nology, renewable energy and renewable fuels, 
energy conservation technology, efficient trans-
mission and distribution of electricity, and car-
bon capture and sequestration. 
‘‘(B) COORDINATION
WITH
QUALIFYING 
ADVANCED
ENERGY
PROJECT
CREDIT.—Such 
term shall not include expenditures taken into 
account in determining the amount of the credit 
under section 48 or 48C. 
‘‘(3) COORDINATION
WITH
OTHER
RESEARCH 
CREDITS.— 
‘‘(A) IN GENERAL.—The amount of quali-
fied energy research expenses taken into ac-
count under subsection (a)(1)(A) shall not ex-
ceed the base amount. 
‘‘(B) ALTERNATIVE SIMPLIFIED CREDIT.— 
For purposes of subsection (c)(5), the amount 
of qualified energy research expenses taken into 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00470
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
471 
AMDT. NO. 570 
account for the taxable year for which the cred-
it is being determined shall not exceed— 
‘‘(i) 
in 
the 
case 
of 
subsection 
(c)(5)(A), 50 percent of the average quali-
fied research expenses for the 3 taxable 
years preceding the taxable year for which 
the credit is being determined, and 
‘‘(ii) 
in 
the 
case 
of 
subsection 
(c)(5)(B)(ii), zero. 
‘‘(C) BASIC RESEARCH AND ENERGY RE-
SEARCH CONSORTIUM PAYMENTS.—Any amount 
taken into account under paragraph (1) shall 
not be taken into account under paragraph (2) 
or (3) of subsection (a).’’. 
(b) CONFORMING AMENDMENT.—Subparagraph (B) 
of section 41(i)(1)(B), as redesignated by subsection (a), 
is amended by inserting ‘‘(in the case of the increase in 
the credit determined under subsection (h), December 31, 
2010)’’ after ‘‘December 31, 2009’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00471
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
472 
AMDT. NO. 570 
PART V—MODIFICATION OF CREDIT FOR 
CARBON DIOXIDE SEQUESTRATION 
SEC. 1141. APPLICATION OF MONITORING REQUIREMENTS 
TO CARBON DIOXIDE USED AS A TERTIARY 
INJECTANT. 
(a) IN GENERAL.—Section 45Q(a)(2) is amended by 
striking ‘‘and’’ at the end of subparagraph (A), by striking 
the period at the end of subparagraph (B) and inserting 
‘‘, and’’, and by adding at the end the following new sub-
paragraph: 
‘‘(C) disposed of by the taxpayer in secure 
geological storage.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 45Q(d)(2) is amended— 
(A) by striking ‘‘subsection (a)(1)(B)’’ and 
inserting ‘‘paragraph (1)(B) or (2)(C) of sub-
section (a)’’, 
(B) by striking ‘‘and unminable coal 
seems’’ and inserting ‘‘, oil and gas reservoirs, 
and unminable coal seams’’, and 
(C) by inserting ‘‘the Secretary of Energy, 
and the Secretary of the Interior,’’ after ‘‘Envi-
ronmental Protection Agency’’. 
(2) Section 45Q(e) is amended by striking 
‘‘captured and disposed of or used as a tertiary 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00472
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
473 
AMDT. NO. 570 
injectant’’ and inserting ‘‘taken into account in ac-
cordance with subsection (a)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to carbon dioxide captured after 
the date of the enactment of this Act. 
PART VI—PLUG-IN ELECTRIC DRIVE MOTOR 
VEHICLES 
SEC. 1151. MODIFICATION OF CREDIT FOR QUALIFIED 
PLUG-IN ELECTRIC MOTOR VEHICLES. 
(a) INCREASE IN VEHICLES ELIGIBLE FOR CRED-
IT.—Section 30D(b)(2)(B) is amended by striking 
‘‘250,000’’ and inserting ‘‘500,000’’. 
(b) EXCLUSION OF NEIGHBORHOOD ELECTRIC VEHI-
CLES FROM EXISTING CREDIT.—Section 30D(e)(1) is 
amended to read as follows: 
‘‘(1) MOTOR VEHICLE.—The term ‘motor vehi-
cle’ means a motor vehicle (as defined in section 
30(c)(2)), which is treated as a motor vehicle for 
purposes of title II of the Clean Air Act.’’. 
(c) CREDIT FOR CERTAIN OTHER VEHICLES.—Sec-
tion 30D is amended— 
(1) by redesignating subsections (f) and (g) as 
subsections (g) and (h), respectively, and 
(2) by inserting after subsection (e) the fol-
lowing new subsection: 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00473
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
475 
AMDT. NO. 570 
‘‘(i) any 2- or 3- wheeled motor vehi-
cle, or 
‘‘(ii) any low-speed motor vehicle, 
which is placed in service after December 31, 
2009, and before January 1, 2012. 
‘‘(B) 2- OR
3-WHEELED
MOTOR
VEHI-
CLE.—The term ‘2- or 3-wheeled motor vehicle’ 
means any vehicle— 
‘‘(i) which would be described in sec-
tion 30(c)(2) except that it has 2 or 3 
wheels, 
‘‘(ii) with motive power having a seat 
or saddle for the use of the rider and de-
signed to travel on not more than 3 wheels 
in contact with the ground, 
‘‘(iii) which has an electric motor that 
produces in excess of 5-brake horsepower, 
‘‘(iv) which draws propulsion from 1 
or more traction batteries, and 
‘‘(v) which has been certified to the 
Department of Transportation pursuant to 
section 567 of title 49, Code of Federal 
Regulations, as conforming to all applica-
ble Federal motor vehicle safety standards 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00475
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
476 
AMDT. NO. 570 
in effect on the date of the manufacture of 
the vehicle. 
‘‘(C) LOW-SPEED
MOTOR
VEHICLE.—The 
term ‘low-speed motor vehicle’ means a motor 
vehicle (as defined in section 30(c)(2)) which— 
‘‘(i) is placed in service after Decem-
ber 31, 2009, and 
‘‘(ii) meets the requirements of sec-
tion 571.500 of title 49, Code of Federal 
Regulations.’’. 
(d) EFFECTIVE DATES.— 
(1) IN
GENERAL.—The amendment made by 
subsections (a) and (c) shall take effect on the date 
of the enactment of this Act. 
(2) OTHER MODIFICATIONS.—The amendments 
made by subsection (b) shall apply to property 
placed in service after December 31, 2009, in tax-
able years beginning after such date. 
SEC. 1152. CONVERSION KITS. 
(a) IN GENERAL.—Section 30B (relating to alter-
native motor vehicle credit) is amended by redesignating 
subsections (i) and (j) as subsections (j) and (k), respec-
tively, and by inserting after subsection (h) the following 
new subsection: 
‘‘(i) PLUG-IN CONVERSION CREDIT.— 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00476
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
477 
AMDT. NO. 570 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the plug-in conversion credit determined under 
this subsection with respect to any motor vehicle 
which is converted to a qualified plug-in electric 
drive motor vehicle is 10 percent of so much of the 
cost of the converting such vehicle as does not ex-
ceed $40,000. 
‘‘(2) DEFINITIONS AND SPECIAL RULES.—For 
purposes of this subsection— 
‘‘(A) QUALIFIED PLUG-IN ELECTRIC DRIVE 
MOTOR VEHICLE.—The term ‘qualified plug-in 
electric drive motor vehicle’ means any new 
qualified plug-in electric drive motor vehicle (as 
defined in section 30D(c), determined without 
regard to paragraphs (4) and (6) thereof). 
‘‘(B) PLUG-IN
TRACTION
BATTERY
MOD-
ULE.—The term ‘plug-in traction battery mod-
ule’ means an electro-chemical energy storage 
device which— 
‘‘(i) which has a traction battery ca-
pacity of not less than 2.5 kilowatt hours, 
‘‘(ii) which is equipped with an elec-
trical plug by means of which it can be en-
ergized and recharged when plugged into 
an external source of electric power, 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00477
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
478 
AMDT. NO. 570 
‘‘(iii) which consists of a standardized 
configuration and is mass produced, 
‘‘(iv) which has been tested and ap-
proved by the National Highway Transpor-
tation Safety Administration as compliant 
with applicable motor vehicle and motor 
vehicle equipment safety standards when 
installed by a mechanic with standardized 
training in protocols established by the 
battery manufacturer as part of a nation-
wide distribution program, 
‘‘(v) which complies with the require-
ments of section 32918 of title 49, United 
States Code, and 
‘‘(vi) which is certified by a battery 
manufacturer as meeting the requirements 
of clauses (i) through (v). 
‘‘(C) CREDIT
ALLOWED
TO
LESSOR
OF 
BATTERY MODULE.—In the case of a plug-in 
traction battery module which is leased to the 
taxpayer, the credit allowed under this sub-
section shall be allowed to the lessor of the 
plug-in traction battery module. 
‘‘(D) CREDIT ALLOWED IN ADDITION TO 
OTHER
CREDITS.—The credit allowed under 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00478
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
479 
AMDT. NO. 570 
this subsection shall be allowed with respect to 
a motor vehicle notwithstanding whether a cred-
it has been allowed with respect to such motor 
vehicle under this section (other than this sub-
section) in any preceding taxable year. 
‘‘(3) TERMINATION.—This subsection shall not 
apply to conversions made after December 31, 
2012.’’. 
(b) CREDIT TREATED AS PART OF ALTERNATIVE 
MOTOR VEHICLE CREDIT.—Section 30B(a) is amended 
by striking ‘‘and’’ at the end of paragraph (3), by striking 
the period at the end of paragraph (4) and inserting ‘‘, 
and’’, and by adding at the end the following new para-
graph: 
‘‘(5) the plug-in conversion credit determined 
under subsection (i).’’. 
(c) NO RECAPTURE FOR VEHICLES CONVERTED TO 
QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHI-
CLES.—Paragraph (8) of section 30B(h) is amended by 
adding at the end the following: ‘‘, except that no benefit 
shall be recaptured if such property ceases to be eligible 
for such credit by reason of conversion to a qualified plug- 
in electric drive motor vehicle.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00479
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
480 
AMDT. NO. 570 
December 31, 2008, in taxable years beginning after such 
date. 
Subtitle C—Tax Incentives for 
Business 
PART I—TEMPORARY INVESTMENT INCENTIVES 
SEC. 1201. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY 
ACQUIRED DURING 2009. 
(a) EXTENSION OF SPECIAL ALLOWANCE.— 
(1) IN
GENERAL.—Paragraph (2) of section 
168(k) is amended— 
(A) by striking ‘‘January 1, 2010’’ and in-
serting ‘‘January 1, 2011’’, and 
(B) by striking ‘‘January 1, 2009’’ each 
place it appears and inserting ‘‘January 1, 
2010’’. 
(2) CONFORMING AMENDMENTS.— 
(A) The heading for subsection (k) of sec-
tion 168 is amended by striking ‘‘JANUARY 1, 
2009’’ and inserting ‘‘JANUARY 1, 2010’’. 
(B) The heading for clause (ii) of section 
168(k)(2)(B) is amended by striking ‘‘PRE-JAN-
UARY 1, 2009’’ and inserting ‘‘PRE-JANUARY 1, 
2010’’. 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00480
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
482 
AMDT. NO. 570 
(1) by striking ‘‘2009’’ and inserting ‘‘2010’’in 
subparagraph (D)(iii) (as redesignated by subsection 
(a)(3)), and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(H) SPECIAL
RULES
FOR
EXTENSION 
PROPERTY.— 
‘‘(i) TAXPAYERS PREVIOUSLY ELECT-
ING ACCELERATION.—In the case of a tax-
payer who made the election under sub-
paragraph (A) for its first taxable year 
ending after March 31, 2008— 
‘‘(I) the taxpayer may elect not 
to have this paragraph apply to exten-
sion property, but 
‘‘(II) if the taxpayer does not 
make the election under subclause (I), 
in applying this paragraph to the tax-
payer a separate bonus depreciation 
amount, maximum amount, and max-
imum increase amount shall be com-
puted and applied to eligible qualified 
property which is extension property 
and to eligible qualified property 
which is not extension property. 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00482
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
483 
AMDT. NO. 570 
‘‘(ii) TAXPAYERS
NOT
PREVIOUSLY 
ELECTING ACCELERATION.—In the case of 
a taxpayer who did not make the election 
under subparagraph (A) for its first tax-
able year ending after March 31, 2008— 
‘‘(I) the taxpayer may elect to 
have this paragraph apply to its first 
taxable year ending after December 
31, 2008, and each subsequent tax-
able year, and 
‘‘(II) if the taxpayer makes the 
election under subclause (I), this 
paragraph shall only apply to eligible 
qualified property which is extension 
property. 
‘‘(iii) EXTENSION
PROPERTY.—For 
purposes of this subparagraph, the term 
‘extension property’ means property which 
is eligible qualified property solely by rea-
son of the extension of the application of 
the special allowance under paragraph (1) 
pursuant to the amendments made by sec-
tion 1201(a) of the American Recovery and 
Reinvestment Tax Act of 2009 (and the 
application of such extension to this para-
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00483
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
484 
AMDT. NO. 570 
graph pursuant to the amendment made 
by section 1201(b)(1) of such Act).’’. 
(c) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to property placed in service after De-
cember 31, 2008, in taxable years ending after such 
date. 
(2) TECHNICAL
AMENDMENT.—The amend-
ments made by subsection (a)(3) shall apply to tax-
able years ending after March 31, 2008. 
SEC. 1202. TEMPORARY INCREASE IN LIMITATIONS ON EX-
PENSING OF CERTAIN DEPRECIABLE BUSI-
NESS ASSETS. 
(a) IN GENERAL.—Paragraph (7) of section 179(b) 
is amended— 
(1) by striking ‘‘2008’’ and inserting ‘‘2008, or 
2009’’, and 
(2) by striking ‘‘2008’’ in the heading thereof 
and inserting ‘‘2008, AND 2009’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00484
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
485 
AMDT. NO. 570 
PART II—5-YEAR CARRYBACK OF OPERATING 
LOSSES 
SEC. 1211. 5-YEAR CARRYBACK OF OPERATING LOSSES. 
(a) IN GENERAL.—Subparagraph (H) of section 
172(b)(1) is amended to read as follows: 
‘‘(H) CARRYBACK FOR 2008 AND 2009 NET 
OPERATING LOSSES.— 
‘‘(i) IN GENERAL.—In the case of an 
applicable 2008 or 2009 net operating loss 
with respect to which the taxpayer has 
elected the application of this subpara-
graph— 
‘‘(I) subparagraph (A)(i) shall be 
applied by substituting any whole 
number elected by the taxpayer which 
is more than 2 and less than 6 for ‘2’, 
‘‘(II) subparagraph (E)(ii) shall 
be applied by substituting the whole 
number which is one less than the 
whole number substituted under sub-
clause (II) for ‘2’, and 
‘‘(III) subparagraph (F) shall not 
apply. 
‘‘(ii) APPLICABLE 2008 OR 2009 NET 
OPERATING
LOSS.—For purposes of this 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00485
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
486 
AMDT. NO. 570 
subparagraph, the term ‘applicable 2008 
or 2009 net operating loss’ means— 
‘‘(I) the taxpayer’s net operating 
loss for any taxable year ending in 
2008 or 2009, or 
‘‘(II) if the taxpayer elects to 
have this subclause apply in lieu of 
subclause (I), the taxpayer’s net oper-
ating loss for any taxable year begin-
ning in 2008 or 2009. 
‘‘(iii) ELECTION.—Any election under 
this subparagraph shall be made in such 
manner as may be prescribed by the Sec-
retary, and shall be made by the due date 
(including extension of time) for filing the 
taxpayer’s return for the taxable year of 
the net operating loss. Any such election, 
once made, shall be irrevocable. 
‘‘(iv) COORDINATION
WITH
ALTER-
NATIVE TAX NET OPERATING LOSS DEDUC-
TION.—In the case of a taxpayer who 
elects to have clause (ii)(II) apply, section 
56(d)(1)(A)(ii) shall be applied by sub-
stituting ‘ending during 2001 or 2002 or 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00486
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
487 
AMDT. NO. 570 
beginning during 2008 or 2009’ for ‘end-
ing during 2001, 2002, 2008, or 2009’.’’. 
(b) ALTERNATIVE TAX NET OPERATING LOSS DE-
DUCTION.—Subclause (I) of section 56(d)(1)(A)(ii) is 
amended to read as follows: 
‘‘(I) the amount of such deduc-
tion attributable to the sum of 
carrybacks of net operating losses 
from taxable years ending during 
2001, 2002, 2008, or 2009 and 
carryovers of net operating losses to 
such taxable years, or’’. 
(c) LOSS FROM OPERATIONS OF LIFE INSURANCE 
COMPANIES.—Subsection (b) of section 810 is amended 
by adding at the end the following new paragraph: 
‘‘(4) CARRYBACK FOR 2008 AND 2009 LOSSES.— 
‘‘(A) IN GENERAL.—In the case of an ap-
plicable 2008 or 2009 loss from operations with 
respect to which the taxpayer has elected the 
application of this paragraph, paragraph (1)(A) 
shall be applied, at the election of the taxpayer, 
by substituting ‘5’ or ‘4’ for ‘3’. 
‘‘(B) APPLICABLE 2008 OR 2009 LOSS FROM 
OPERATIONS.—For purposes of this paragraph, 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00487
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
489 
AMDT. NO. 570 
(d) CONFORMING
AMENDMENT.—Section 172 is 
amended by striking subsection (k) and by redesignating 
subsection (l) as subsection (k). 
(e) EFFECTIVE DATE.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the amendments made by 
this section shall apply to net operating losses aris-
ing in taxable years ending after December 31, 
2007. 
(2) ALTERNATIVE TAX NET OPERATING LOSS 
DEDUCTION.—The amendment made by subsection 
(b) shall apply to taxable years ending after 1997. 
(3) LOSS FROM OPERATIONS OF LIFE INSUR-
ANCE COMPANIES.—The amendment made by sub-
section (d) shall apply to losses from operations aris-
ing in taxable years ending after December 31, 
2007. 
(4) TRANSITIONAL RULE.—In the case of a net 
operating loss (or, in the case of a life insurance 
company, a loss from operations) for a taxable year 
ending before the date of the enactment of this 
Act— 
(A) any election made under section 
172(b)(3) or 810(b)(3) of the Internal Revenue 
Code of 1986 with respect to such loss may 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00489
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
490 
AMDT. NO. 570 
(notwithstanding such section) be revoked be-
fore the applicable date, 
(B) any election made under section 
172(k) or 810(b)(4) of such Code with respect 
to such loss shall (notwithstanding such sec-
tion) be treated as timely made if made before 
the applicable date, and 
(C) any application under section 6411(a) 
of such Code with respect to such loss shall be 
treated as timely filed if filed before the appli-
cable date. 
For purposes of this paragraph, the term ‘‘applica-
ble date’’ means the date which is 60 days after the 
date of the enactment of this Act. 
SEC. 1212. EXCEPTION FOR TARP RECIPIENTS. 
The amendments made by this part shall not apply 
to— 
(1) any taxpayer if— 
(A) the Federal Government acquires, at 
any time, an equity interest in the taxpayer 
pursuant to the Emergency Economic Stabiliza-
tion Act of 2008, or 
(B) the Federal Government acquires, at 
any time, any warrant (or other right) to ac-
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00490
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
491 
AMDT. NO. 570 
quire any equity interest with respect to the 
taxpayer pursuant to such Act, 
(2) the Federal National Mortgage Association 
and the Federal Home Loan Mortgage Corporation, 
and 
(3) any taxpayer which at any time in 2008 or 
2009 is a member of the same affiliated group (as 
defined in section 1504 of the Internal Revenue 
Code of 1986, determined without regard to sub-
section (b) thereof) as a taxpayer described in para-
graph (1) or (2). 
PART III—INCENTIVES FOR NEW JOBS 
SEC. 1221. INCENTIVES TO HIRE UNEMPLOYED VETERANS 
AND DISCONNECTED YOUTH. 
(a) IN GENERAL.—Subsection (d) of section 51 is 
amended by adding at the end the following new para-
graph: 
‘‘(14) CREDIT
ALLOWED
FOR
UNEMPLOYED 
VETERANS
AND
DISCONNECTED
YOUTH
HIRED
IN 
2009 OR 2010.— 
‘‘(A) IN GENERAL.—Any unemployed vet-
eran or disconnected youth who begins work for 
the employer during 2009 or 2010 shall be 
treated as a member of a targeted group for 
purposes of this subpart. 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00491
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
492 
AMDT. NO. 570 
‘‘(B) DEFINITIONS.—For purposes of this 
paragraph— 
‘‘(i) UNEMPLOYED
VETERAN.—The 
term ‘unemployed veteran’ means any vet-
eran (as defined in paragraph (3)(B), de-
termined without regard to clause (ii) 
thereof) who is certified by the designated 
local agency as— 
(I) having been discharged or re-
leased from active duty in the Armed 
Forces during the period beginning on 
September 1, 2001, and ending on 
December 31, 2010, and 
‘‘(II) being in receipt of unem-
ployment compensation under State or 
Federal law for not less than 4 weeks 
during the 1-year period ending on 
the hiring date. 
‘‘(ii) DISCONNECTED
YOUTH.—The 
term ‘disconnected youth’ means any indi-
vidual who is certified by the designated 
local agency— 
‘‘(I) as having attained age 16 
but not age 25 on the hiring date, 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00492
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
493 
AMDT. NO. 570 
‘‘(II) as not regularly attending 
any secondary, technical, or post-sec-
ondary school during the 6-month pe-
riod preceding the hiring date, 
‘‘(III) as not regularly employed 
during such 6-month period, and 
‘‘(IV) as not readily employable 
by reason of lacking a sufficient num-
ber of basic skills.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to individuals who begin work for 
the employer after December 31, 2008. 
PART IV—CANCELLATION OF INDEBTEDNESS 
SEC. 1231. DEFERRAL AND RATABLE INCLUSION OF IN-
COME ARISING FROM INDEBTEDNESS DIS-
CHARGED BY THE REPURCHASE OF A DEBT 
INSTRUMENT. 
(a) IN GENERAL.—Section 108 (relating to income 
from discharge of indebtedness) is amended by adding at 
the end the following new subsection: 
‘‘(i) DEFERRAL AND RATABLE INCLUSION OF IN-
COME ARISING FROM INDEBTEDNESS DISCHARGED BY 
THE REPURCHASE OF A DEBT INSTRUMENT.— 
‘‘(1) IN
GENERAL.—Notwithstanding section 
61, income from the discharge of indebtedness in 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00493
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
494 
AMDT. NO. 570 
connection with the repurchase of a debt instrument 
after December 31, 2008, and before January 1, 
2011, shall be includible in gross income ratably 
over the 8-taxable-year period beginning with— 
‘‘(A) in the case of a repurchase occurring 
in 2009, the second taxable year following the 
taxable year in which the repurchase occurs, 
and 
‘‘(B) in the case of a repurchase occurring 
in 2010, the taxable year following the taxable 
year in which the repurchase occurs. 
‘‘(2) DEBT INSTRUMENT.—For purposes of this 
subsection, the term ‘debt instrument’ means a 
bond, debenture, note, certificate, or any other in-
strument or contractual arrangement constituting 
indebtedness 
(within 
the 
meaning 
of 
section 
1275(a)(1)). 
‘‘(3) REPURCHASE.—For purposes of this sub-
section, the term ‘repurchase’ means, with respect to 
any debt instrument, a cash purchase of the debt in-
strument by— 
‘‘(A) the debtor which issued the debt in-
strument, or 
‘‘(B) any person related to such debtor. 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00494
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
495 
AMDT. NO. 570 
For purposes of subparagraph (B), the determina-
tion of whether a person is related to another person 
shall be made in the same manner as under sub-
section (e)(4). 
‘‘(4) AUTHORITY
TO
PRESCRIBE
REGULA-
TIONS.—The Secretary may prescribe such regula-
tions as may be necessary or appropriate for pur-
poses of applying this subsection.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to discharges in taxable years end-
ing after December 31, 2008. 
PART V—QUALIFIED SMALL BUSINESS STOCK 
SEC. 1241. SPECIAL RULES APPLICABLE TO QUALIFIED 
SMALL BUSINESS STOCK FOR 2009 AND 2010. 
(a) IN GENERAL.—Section 1202(a) is amended by 
adding at the end the following new paragraph: 
‘‘(3) SPECIAL RULES FOR 2009 AND 2010.—In 
the case of qualified small business stock acquired 
after the date of the enactment of this paragraph 
and before January 1, 2011— 
‘‘(A) paragraph (1) shall be applied by 
substituting ‘75 percent’ for ‘50 percent’, and 
‘‘(B) paragraph (2) shall not apply.’’. 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00495
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
496 
AMDT. NO. 570 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to stock acquired after the date 
of the enactment of this Act. 
PART VI—PARITY FOR TRANSPORTATION 
FRINGE BENEFITS 
SEC. 1251. INCREASED EXCLUSION AMOUNT FOR COM-
MUTER TRANSIT BENEFITS AND TRANSIT 
PASSES. 
(a) IN GENERAL.—Paragraph (2) of section 132(f) 
is amended by adding at the end the following flush sen-
tence: 
‘‘In the case of any month beginning on or after the 
date of the enactment of this sentence and before 
January 1, 2011, subparagraph (A) shall be applied 
as if the dollar amount therein were the same as the 
dollar amount under subparagraph (B) (as in effect 
for such month).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to months beginning on or after 
the date of the enactment of this section. 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00496
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
497 
AMDT. NO. 570 
PART VII—S CORPORATIONS 
SEC. 1261. TEMPORARY REDUCTION IN RECOGNITION PE-
RIOD FOR BUILT-IN GAINS TAX. 
(a) IN GENERAL.—Paragraph (7) of section 1374(d) 
(relating to definitions and special rules) is amended to 
read as follows: 
‘‘(7) RECOGNITION PERIOD.— 
‘‘(A) IN GENERAL.—The term ‘recognition 
period’ means the 10-year period beginning 
with the 1st day of the 1st taxable year for 
which the corporation was an S corporation. 
‘‘(B) SPECIAL RULE FOR 2009 AND 2010.— 
In the case of any taxable year beginning in 
2009 or 2010, no tax shall be imposed on the 
net unrecognized built-in gain of an S corpora-
tion if the 7th taxable year in the recognition 
period preceded such taxable year. The pre-
ceding sentence shall be applied separately with 
respect to any asset to which paragraph (8) ap-
plies. 
‘‘(C) SPECIAL RULE FOR DISTRIBUTIONS 
TO SHAREHOLDERS.—For purposes of applying 
this section to any amount includible in income 
by reason of distributions to shareholders pur-
suant to section 593(e)— 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00497
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
498 
AMDT. NO. 570 
‘‘(i) subparagraph (A) shall be applied 
without regard to the phrase ‘10-year’, and 
‘‘(ii) subparagraph (B) shall not 
apply.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
PART VIII—BROADBAND INCENTIVES 
SEC. 1271. BROADBAND INTERNET ACCESS TAX CREDIT. 
(a) IN GENERAL.—Subpart E of part IV of chapter 
1 of the Internal Revenue Code of 1986 (relating to rules 
for computing investment credit), as amended by this Act, 
is amended by inserting after section 48C the following 
new section: 
‘‘SEC. 48D. BROADBAND INTERNET ACCESS CREDIT. 
‘‘(a) GENERAL RULE.—For purposes of section 46, 
the broadband credit for any taxable year is the sum of— 
‘‘(1) the current generation broadband credit, 
plus 
‘‘(2) the next generation broadband credit. 
‘‘(b) CURRENT GENERATION BROADBAND CREDIT; 
NEXT GENERATION BROADBAND CREDIT.—For purposes 
of this section— 
‘‘(1) 
CURRENT
GENERATION
BROADBAND 
CREDIT.—The current generation broadband credit 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00498
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
499 
AMDT. NO. 570 
for any taxable year is equal to 10 percent (20 per-
cent in the case of qualified subscribers which are 
unserved subscribers) of the qualified broadband ex-
penditures incurred with respect to qualified equip-
ment providing current generation broadband serv-
ices to qualified subscribers and taken into account 
with respect to such taxable year. 
‘‘(2) NEXT
GENERATION
BROADBAND
CRED-
IT.—The next generation broadband credit for any 
taxable year is equal to 20 percent of the qualified 
broadband expenditures incurred with respect to 
qualified 
equipment 
providing 
next 
generation 
broadband services to qualified subscribers and 
taken into account with respect to such taxable year. 
‘‘(c) WHEN
EXPENDITURES
TAKEN
INTO
AC-
COUNT.—For purposes of this section— 
‘‘(1) IN
GENERAL.—Qualified broadband ex-
penditures with respect to qualified equipment shall 
be taken into account with respect to the first tax-
able year in which— 
‘‘(A) current generation broadband services 
are provided through such equipment to quali-
fied subscribers, or 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00499
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
500 
AMDT. NO. 570 
‘‘(B) next generation broadband services 
are provided through such equipment to quali-
fied subscribers. 
‘‘(2) LIMITATION.— 
‘‘(A) IN
GENERAL.—Qualified broadband 
expenditures shall be taken into account under 
paragraph (1) only with respect to qualified 
equipment— 
‘‘(i) the original use of which com-
mences with the taxpayer, and 
‘‘(ii) which is placed in service, after 
December 31, 2008, and before January 1, 
2011. 
‘‘(B) SALE-LEASEBACKS.—For purposes of 
subparagraph (A), if property— 
‘‘(i) is originally placed in service 
after December 31, 2008, by any person, 
and 
‘‘(ii) sold and leased back by such per-
son within 3 months after the date such 
property was originally placed in service, 
such property shall be treated as originally 
placed in service not earlier than the date on 
which such property is used under the leaseback 
referred to in clause (ii). 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00500
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
501 
AMDT. NO. 570 
‘‘(d) SPECIAL ALLOCATION RULES FOR CURRENT 
GENERATION BROADBAND SERVICES.—For purposes of 
determining the current generation broadband credit 
under subsection (a)(1) with respect to qualified equip-
ment through which current generation broadband serv-
ices are provided, if the qualified equipment is capable of 
serving both qualified subscribers and other subscribers, 
the qualified broadband expenditures shall be multiplied 
by a fraction— 
‘‘(1) the numerator of which is the sum of the 
number of potential qualified subscribers within the 
rural areas and the underserved areas and the 
unserved areas which the equipment is capable of 
serving with current generation broadband services, 
and 
‘‘(2) the denominator of which is the total po-
tential subscriber population of the area which the 
equipment is capable of serving with current genera-
tion broadband services. 
‘‘(e) DEFINITIONS.—For purposes of this section— 
‘‘(1) ANTENNA.—The term ‘antenna’ means 
any device used to transmit or receive signals 
through the electromagnetic spectrum, including sat-
ellite equipment. 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00501
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
502 
AMDT. NO. 570 
‘‘(2) CABLE OPERATOR.—The term ‘cable oper-
ator’ has the meaning given such term by section 
602(5) of the Communications Act of 1934 (47 
U.S.C. 522(5)). 
‘‘(3) COMMERCIAL
MOBILE
SERVICE
CAR-
RIER.—The term ‘commercial mobile service carrier’ 
means any person authorized to provide commercial 
mobile radio service as defined in section 20.3 of 
title 47, Code of Federal Regulations. 
‘‘(4) CURRENT GENERATION BROADBAND SERV-
ICE.—The term ‘current generation broadband serv-
ice’ means the transmission of signals at a rate of 
at least 5,000,000 bits per second to the subscriber 
and at least 1,000,000 bits per second from the sub-
scriber (at least 3,000,000 bits per second to the 
subscriber and at least 768,000 bits per second from 
the subscriber in the case of service through radio 
transmission of energy). 
‘‘(5) MULTIPLEXING
OR
DEMULTIPLEXING.— 
The term ‘multiplexing’ means the transmission of 2 
or more signals over a single channel, and the term 
‘demultiplexing’ means the separation of 2 or more 
signals previously combined by compatible multi-
plexing equipment. 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00502
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
503 
AMDT. NO. 570 
‘‘(6) NEXT
GENERATION
BROADBAND
SERV-
ICE.—The term ‘next generation broadband service’ 
means the transmission of signals at a rate of at 
least 100,000,000 bits per second to the subscriber 
(or its equivalent when the data rate is measured be-
fore being compressed for transmission) and at least 
20,000,000 bits per second from the subscriber (or 
its equivalent as so measured). 
‘‘(7) 
NONRESIDENTIAL
SUBSCRIBER.—The 
term ‘nonresidential subscriber’ means any person 
who purchases broadband services which are deliv-
ered to the permanent place of business of such per-
son. 
‘‘(8) OPEN
VIDEO
SYSTEM
OPERATOR.—The 
term ‘open video system operator’ means any person 
authorized to provide service under section 653 of 
the Communications Act of 1934 (47 U.S.C. 573). 
‘‘(9) OTHER
WIRELESS
CARRIER.—The term 
‘other wireless carrier’ means any person (other than 
a telecommunications carrier, commercial mobile 
service carrier, cable operator, open video system op-
erator, or satellite carrier) providing current genera-
tion 
broadband 
services 
or 
next 
generation 
broadband service to subscribers through the radio 
transmission of energy. 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00503
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
504 
AMDT. NO. 570 
‘‘(10) PACKET SWITCHING.—The term ‘packet 
switching’ means controlling or routing the path of 
a digitized transmission signal which is assembled 
into packets or cells. 
‘‘(11) PROVIDER.—The term ‘provider’ means, 
with respect to any qualified equipment any— 
‘‘(A) cable operator, 
‘‘(B) commercial mobile service carrier, 
‘‘(C) open video system operator, 
‘‘(D) satellite carrier, 
‘‘(E) telecommunications carrier, or 
‘‘(F) other wireless carrier, 
providing current generation broadband services or 
next generation broadband services to subscribers 
through such qualified equipment. 
‘‘(12) PROVISION
OF
SERVICES.—A provider 
shall be treated as providing services to 1 or more 
subscribers if— 
‘‘(A) such a subscriber has been passed by 
the provider’s equipment and can be connected 
to such equipment for a standard connection 
fee, 
‘‘(B) the provider is physically able to de-
liver current generation broadband services or 
next generation broadband services, as applica-
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00504
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
505 
AMDT. NO. 570 
ble, to such a subscriber without making more 
than an insignificant investment with respect to 
such subscriber, 
‘‘(C) the provider has made reasonable ef-
forts to make such subscribers aware of the 
availability of such services, 
‘‘(D) such services have been purchased by 
1 or more such subscribers, and 
‘‘(E) such services are made available to 
such subscribers at average prices comparable 
to those at which the provider makes available 
similar services in any areas in which the pro-
vider makes available such services. 
‘‘(13) QUALIFIED EQUIPMENT.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
equipment’ means property with respect to 
which depreciation (or amortization in lieu of 
depreciation) is allowable and which provides 
current generation broadband services or next 
generation broadband services— 
‘‘(i) at least a majority of the time 
during periods of maximum demand to 
each subscriber who is utilizing such serv-
ices, and 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00505
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
506 
AMDT. NO. 570 
‘‘(ii) in a manner substantially the 
same as such services are provided by the 
provider to subscribers through equipment 
with respect to which no credit is allowed 
under subsection (a)(1). 
‘‘(B) ONLY CERTAIN INVESTMENT TAKEN 
INTO
ACCOUNT.—Except as provided in sub-
paragraph (C) or (D), equipment shall be taken 
into account under subparagraph (A) only to 
the extent it— 
‘‘(i) extends from the last point of 
switching to the outside of the unit, build-
ing, dwelling, or office owned or leased by 
a subscriber in the case of a telecommuni-
cations carrier or broadband-over-powerline 
operator, 
‘‘(ii) extends from the customer side 
of the mobile telephone switching office to 
a transmission/receive antenna (including 
such antenna) owned or leased by a sub-
scriber in the case of a commercial mobile 
service carrier, 
‘‘(iii) extends from the customer side 
of the headend to the outside of the unit, 
building, dwelling, or office owned or 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00506
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
507 
AMDT. NO. 570 
leased by a subscriber in the case of a 
cable operator or open video system oper-
ator, or 
‘‘(iv) extends from a transmission/re-
ceive antenna (including such antenna) 
which transmits and receives signals to or 
from multiple subscribers, to a trans-
mission/receive antenna (including such 
antenna) on the outside of the unit, build-
ing, dwelling, or office owned or leased by 
a subscriber in the case of a satellite car-
rier or other wireless carrier, unless such 
other wireless carrier is also a tele-
communications carrier. 
‘‘(C) PACKET
SWITCHING
EQUIPMENT.— 
Packet switching equipment, regardless of loca-
tion, shall be taken into account under subpara-
graph (A) only if it is deployed in connection 
with equipment described in subparagraph (B) 
and is uniquely designed to perform the func-
tion of packet switching for current generation 
broadband 
services 
or 
next 
generation 
broadband services, but only if such packet 
switching is the last in a series of such func-
tions performed in the transmission of a signal 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00507
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
508 
AMDT. NO. 570 
to a subscriber or the first in a series of such 
functions performed in the transmission of a 
signal from a subscriber. 
‘‘(D) 
MULTIPLEXING
AND 
DEMULTIPLEXING
EQUIPMENT.—Multiplexing 
and demultiplexing equipment shall be taken 
into account under subparagraph (A) only to 
the extent it is deployed in connection with 
equipment described in subparagraph (B) and 
is uniquely designed to perform the function of 
multiplexing and demultiplexing packets or cells 
of data and making associated application 
adaptions, but only if such multiplexing or 
demultiplexing equipment is located between 
packet switching equipment described in sub-
paragraph (C) and the subscriber’s premises. 
‘‘(14) 
QUALIFIED
BROADBAND
EXPENDI-
TURE.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
broadband expenditure’ means any amount— 
‘‘(i) chargeable to capital account with 
respect to the purchase and installation of 
qualified equipment (including any up-
grades thereto) for which depreciation is 
allowable under section 168, and 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00508
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
509 
AMDT. NO. 570 
‘‘(ii) incurred after December 31, 
2008, and before January 1, 2011. 
‘‘(B) CERTAIN SATELLITE EXPENDITURES 
EXCLUDED.—Such term shall not include any 
expenditure with respect to the launching of 
any satellite equipment. 
‘‘(C) LEASED
EQUIPMENT.—Such term 
shall include so much of the purchase price paid 
by the lessor of equipment subject to a lease de-
scribed in subsection (c)(2)(B) as is attrib-
utable to expenditures incurred by the lessee 
which would otherwise be described in subpara-
graph (A). 
‘‘(15) QUALIFIED
SUBSCRIBER.—The term 
‘qualified subscriber’ means— 
‘‘(A) with respect to the provision of cur-
rent generation broadband services— 
‘‘(i) any nonresidential subscriber 
maintaining a permanent place of business 
in a rural area, an underserved area, or an 
unserved area, or 
‘‘(ii) any residential subscriber resid-
ing in a dwelling located in a rural area, 
an underserved area, or an unserved area 
which is not a saturated market, and 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00509
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
510 
AMDT. NO. 570 
‘‘(B) with respect to the provision of next 
generation broadband services— 
‘‘(i) any nonresidential subscriber 
maintaining a permanent place of business 
in a rural area, an underserved area, or an 
unserved area , or 
‘‘(ii) any residential subscriber. 
‘‘(16) RESIDENTIAL
SUBSCRIBER.—The term 
‘residential subscriber’ means any individual who 
purchases broadband services which are delivered to 
such individual’s dwelling. 
‘‘(17) RURAL
AREA.—The term ‘rural area’ 
means any census tract which— 
‘‘(A) is not within 10 miles of any incor-
porated or census designated place containing 
more than 25,000 people, and 
‘‘(B) is not within a county or county 
equivalent which has an overall population den-
sity of more than 500 people per square mile of 
land. 
‘‘(18) RURAL
SUBSCRIBER.—The term ‘rural 
subscriber’ means any residential subscriber residing 
in a dwelling located in a rural area or nonresiden-
tial subscriber maintaining a permanent place of 
business located in a rural area. 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00510
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
511 
AMDT. NO. 570 
‘‘(19) SATELLITE
CARRIER.—The term ‘sat-
ellite carrier’ means any person using the facilities 
of a satellite or satellite service licensed by the Fed-
eral Communications Commission and operating in 
the Fixed-Satellite Service under part 25 of title 47 
of the Code of Federal Regulations or the Direct 
Broadcast Satellite Service under part 100 of title 
47 of such Code to establish and operate a channel 
of communications for distribution of signals, and 
owning or leasing a capacity or service on a satellite 
in order to provide such point-to-multipoint distribu-
tion. 
‘‘(20) SATURATED MARKET.—The term ‘satu-
rated market’ means any census tract in which, as 
of the date of the enactment of this section— 
‘‘(A) current generation broadband services 
have been provided by a single provider to 85 
percent or more of the total number of potential 
residential subscribers residing in dwellings lo-
cated within such census tract, and 
‘‘(B) such services can be utilized— 
‘‘(i) at least a majority of the time 
during periods of maximum demand by 
each such subscriber who is utilizing such 
services, and 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00511
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
512 
AMDT. NO. 570 
‘‘(ii) in a manner substantially the 
same as such services are provided by the 
provider to subscribers through equipment 
with respect to which no credit is allowed 
under subsection (a)(1). 
‘‘(21) SUBSCRIBER.—The term ‘subscriber’ 
means any person who purchases current generation 
broadband services or next generation broadband 
services. 
‘‘(22) TELECOMMUNICATIONS
CARRIER.—The 
term ‘telecommunications carrier’ has the meaning 
given such term by section 3(44) of the Communica-
tions Act of 1934 (47 U.S.C. 153(44)), but— 
‘‘(A) includes all members of an affiliated 
group of which a telecommunications carrier is 
a member, and 
‘‘(B) does not include any commercial mo-
bile service carrier. 
‘‘(23) TOTAL
POTENTIAL
SUBSCRIBER
POPU-
LATION.—The term ‘total potential subscriber popu-
lation’ means, with respect to any area and based on 
the most recent census data, the total number of po-
tential residential subscribers residing in dwellings 
located in such area and potential nonresidential 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00512
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
513 
AMDT. NO. 570 
subscribers maintaining permanent places of busi-
ness located in such area. 
‘‘(24) UNDERSERVED AREA.—The term ‘under-
served area’ means any census tract which is located 
in— 
‘‘(A) an empowerment zone or enterprise 
community designated under section 1391, 
‘‘(B) the District of Columbia Enterprise 
Zone established under section 1400, 
‘‘(C) a renewal community designated 
under section 1400E, or 
‘‘(D) a low-income community designated 
under section 45D. 
‘‘(25) UNDERSERVED SUBSCRIBER.—The term 
‘underserved subscriber’ means any residential sub-
scriber residing in a dwelling located in an under-
served area or nonresidential subscriber maintaining 
a permanent place of business located in an under-
served area. 
‘‘(26) UNSERVED AREA.—The term ‘unserved 
area’ means any census tract in which no current 
generation broadband services are provided, as cer-
tified by the State in which such tract is located not 
later than September 30, 2009. 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00513
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
514 
AMDT. NO. 570 
‘‘(27) 
UNSERVED
SUBSCRIBER.—The 
term 
‘unserved subscriber’ means any residential sub-
scriber residing in a dwelling located in an unserved 
area or nonresidential subscriber maintaining a per-
manent place of business located in an unserved 
area.’’. 
(b) CREDIT TO BE PART OF INVESTMENT CREDIT.— 
Section 46 (relating to the amount of investment credit), 
as amended by this Act, is amended by striking ‘‘and’’ 
at the end of paragraph (4), by striking the period at the 
end of paragraph (5) and inserting ‘‘, and’’, and by adding 
at the end the following: 
‘‘(6) the broadband Internet access credit.’’ 
(c) SPECIAL RULE FOR MUTUAL OR COOPERATIVE 
TELEPHONE COMPANIES.—Section 501(c)(12)(B) (relat-
ing to list of exempt organizations) is amended by striking 
‘‘or’’ at the end of clause (iii), by striking the period at 
the end of clause (iv) and inserting ‘‘, or’’, and by adding 
at the end the following new clause: 
‘‘(v) from the sale of property subject 
to 
a 
lease 
described 
in 
section 
48D(c)(2)(B), but only to the extent such 
income does not in any year exceed an 
amount equal to the credit for qualified 
broadband expenditures which would be 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00514
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
515 
AMDT. NO. 570 
determined under section 48D for such 
year if the mutual or cooperative telephone 
company was not exempt from taxation 
and was treated as the owner of the prop-
erty subject to such lease.’’. 
(d) CONFORMING AMENDMENTS.— 
(1) Section 49(a)(1)(C), as amended by this 
Act, is amended by striking ‘‘and’’ at the end of 
clause (iv), by striking the period at the end of 
clause (v) and inserting ‘‘, and’’, and by adding after 
clause (v) the following new clause: 
‘‘(vi) the portion of the basis of any 
qualified equipment attributable to quali-
fied broadband expenditures under section 
48D.’’. 
(2) The table of sections for subpart E of part 
IV of subchapter A of chapter 1, as amended by this 
Act, is amended by inserting after the item relating 
to section 48C the following: 
‘‘Sec. 48D. Broadband internet access credit’’. 
(e) DESIGNATION OF CENSUS TRACTS.— 
(1) IN GENERAL.—The Secretary of the Treas-
ury shall, not later than 90 days after the date of 
the enactment of this Act, designate and publish 
those census tracts meeting the criteria described in 
paragraphs (17), (23), (24), and (26) of section 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00515
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
516 
AMDT. NO. 570 
48D(e) of the Internal Revenue Code of 1986 (as 
added by this section). In making such designations, 
the Secretary of the Treasury shall consult with 
such other departments and agencies as the Sec-
retary determines appropriate. 
(2) SATURATED MARKET.— 
(A) IN GENERAL.—For purposes of desig-
nating and publishing those census tracts meet-
ing the criteria described in subsection (e)(20) 
of such section 48D— 
(i) the Secretary of the Treasury shall 
prescribe not later than 30 days after the 
date of the enactment of this Act the form 
upon which any provider which takes the 
position that it meets such criteria with re-
spect to any census tract shall submit a 
list of such census tracts (and any other 
information required by the Secretary) not 
later than 60 days after the date of the 
publication of such form, and 
(ii) the Secretary of the Treasury 
shall publish an aggregate list of such cen-
sus tracts submitted and the applicable 
providers not later than 30 days after the 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00516
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
517 
AMDT. NO. 570 
last date such submissions are allowed 
under clause (i). 
(B) NO SUBSEQUENT LISTS REQUIRED.— 
The Secretary of the Treasury shall not be re-
quired to publish any list of census tracts meet-
ing such criteria subsequent to the list de-
scribed in subparagraph (A)(ii). 
(C) AUTHORITY
TO
DISREGARD
FALSE 
SUBMISSIONS.—In addition to imposing any 
other applicable penalties, the Secretary of the 
Treasury shall have the discretion to disregard 
any form described in subparagraph (A)(i) on 
which a provider knowingly submitted false in-
formation. 
(f) OTHER REGULATORY MATTERS.— 
(1) PROHIBITION.—No Federal or State agency 
or instrumentality shall adopt regulations or rate-
making procedures that would have the effect of 
eliminating or reducing any credit or portion thereof 
allowed under section 48D of the Internal Revenue 
Code of 1986 (as added by this section) or otherwise 
subverting the purpose of this section. 
(2) TREASURY REGULATORY AUTHORITY.—It is 
the intent of Congress in providing the broadband 
Internet access credit under section 48D of the In-
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00517
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS
518 
AMDT. NO. 570 
ternal Revenue Code of 1986 (as added by this sec-
tion) to provide incentives for the purchase, installa-
tion, and connection of equipment and facilities of-
fering expanded broadband access to the Internet for 
users in certain low income and rural areas of the 
United States, as well as to residential users nation-
wide, in a manner that maintains competitive neu-
trality among the various classes of providers of 
broadband services. Accordingly, the Secretary of 
the Treasury shall prescribe such regulations as may 
be necessary or appropriate to carry out the pur-
poses of section 48D of such Code, including— 
(A) regulations to determine how and when 
a taxpayer that incurs qualified broadband ex-
penditures satisfies the requirements of section 
48D of such Code to provide broadband serv-
ices, and 
(B) regulations describing the information, 
records, and data taxpayers are required to pro-
vide the Secretary to substantiate compliance 
with the requirements of section 48D of such 
Code. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenditures incurred after De-
cember 31, 2008. 
VerDate Nov 24 2008 
02:51 Feb 08, 2009
Jkt 079200
PO 00000
Frm 00518
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS2
H1
smartinez on PROD1PC64 with BILLS