4647 
TITLE V—MISCELLANEOUS 
SEC. 501. IMPLEMENTATION FUNDING. 
For purposes of carrying out the provisions of, and 
the amendments made by, titles I, II, and IV, in addition 
to any funds otherwise made available, there are appro-
priated from amounts in the Treasury not otherwise appro-
priated, $37,000,000 to the Centers for Medicare & Med-
icaid Services Program Management Account for fiscal year 
2021, to remain available until expended. 
DIVISION DD—MONTANA WATER 
RIGHTS PROTECTION ACT 
SEC. 1. SHORT TITLE. 
This division may be cited as the ‘‘Montana Water 
Rights Protection Act’’. 
SEC. 2. PURPOSES. 
The purposes of this Act are— 
(1) to achieve a fair, equitable, and final settle-
ment of claims to water rights in the State of Mon-
tana, and in recognition of article I, and section 3 of 
article IX, of the Montana State Constitution for— 
(A) the Confederated Salish and Kootenai 
Tribes of the Flathead Indian Reservation; and 
(B) the United States, for the benefit of the 
Tribes and allottees; 
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(2) to authorize, ratify, and confirm the water 
rights compact entered into by the Tribes and the 
State, to the extent that the Compact is consistent 
with this Act; 
(3) to authorize and direct the Secretary of the 
Interior— 
(A) to execute the Compact; and 
(B) to take any other action necessary to 
carry out the Compact in accordance with this 
Act; and 
(4) to authorize funds necessary for the imple-
mentation of— 
(A) the Compact; and 
(B) this Act. 
SEC. 3. DEFINITIONS. 
(a) IN GENERAL.—In this Act: 
(1) ALLOTTEE.—The term ‘‘allottee’’ means an 
individual who holds a beneficial real property inter-
est in an allotment of Indian land that is— 
(A) located within the Reservation; and 
(B) held in trust by the United States. 
(2) BISON.—The term ‘‘bison’’ means North 
American plains bison. 
(3) COMPACT.—The term ‘‘Compact’’ means— 
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(A) the water rights compact entered into 
and ratified, as applicable, by the Confederated 
Salish and Kootenai Tribes, the State, and the 
United States, as contained in section 85–20– 
1901 of the Montana Code Annotated (2019), in-
cluding— 
(i) any appendix or exhibit to that 
compact; and 
(ii) any modifications authorized by 
that compact; and 
(B) any amendment to the compact referred 
to in subparagraph (A) (including an amend-
ment to an appendix or exhibit) that is— 
(i) executed to ensure that the Compact 
is consistent with this Act; or 
(ii) otherwise authorized by the Com-
pact and this Act. 
(4) ENFORCEABILITY DATE.—The term ‘‘enforce-
ability date’’ means the date described in section 
10(b). 
(5) FLATHEAD INDIAN IRRIGATION PROJECT.— 
(A) IN GENERAL.—The term ‘‘Flathead In-
dian irrigation project’’ means the Federal irri-
gation project developed by the United States to 
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irrigate land within the Reservation pursuant 
to— 
(i) the Act of April 23, 1904 (33 Stat. 
302, chapter 1495); and 
(ii) the Act of May 29, 1908 (35 Stat. 
444, chapter 216). 
(B) INCLUSIONS.—The term ‘‘Flathead In-
dian irrigation project’’ includes— 
(i) all land and any reservoir, ease-
ment, right-of-way, canal, ditch, lateral, or 
any other facility of the project referred to 
in subparagraph (A) (regardless of location 
on or off the Reservation); and 
(ii) any headgate, pipeline, pump, 
building, heavy equipment, vehicle, supplies, 
record, copy of a record, or any other phys-
ical, tangible object of real or personal 
property used in the management and oper-
ation of the project referred to in subpara-
graph (A). 
(6) HUNGRY HORSE DAM.—The term ‘‘Hungry 
Horse Dam’’ means the dam that is a part of the 
Hungry Horse Project. 
(7) HUNGRY HORSE PROJECT.—The term ‘‘Hun-
gry Horse Project’’ means the project authorized to be 
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carried out by the Secretary under the Act of June 5, 
1944 (43 U.S.C. 593a et seq.). 
(8) HUNGRY
HORSE
RESERVOIR.—The term 
‘‘Hungry Horse Reservoir’’ means the reservoir that is 
a part of the Hungry Horse Project. 
(9) INDIAN TRIBE.—The term ‘‘Indian tribe’’ has 
the meaning given the term in section 4 of the Indian 
Self-Determination and Education Assistance Act (25 
U.S.C. 5304). 
(10) LAW OF ADMINISTRATION.—The term ‘‘Law 
of Administration’’ means the Unitary Administra-
tion and Management Ordinance, as set forth in Ap-
pendix 4 to the Compact. 
(11) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior. 
(12) STATE.— 
(A) IN GENERAL.—The term ‘‘State’’ means 
the State of Montana. 
(B) INCLUSIONS.—The term ‘‘State’’ in-
cludes all officers, agencies, departments, and po-
litical subdivisions of the State. 
(13) TRIBAL WATER RIGHT.—The term ‘‘Tribal 
Water Right’’ means the water right of the Tribes, as 
established in— 
(A) the Compact; and 
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(B) this Act. 
(14) TRIBES.— 
(A) IN
GENERAL.—The term ‘‘Tribes’’ 
means the Confederated Salish and Kootenai 
Tribes of the Flathead Reservation of Montana. 
(B) INCLUSIONS.—The term ‘‘Tribes’’ in-
cludes all officers, agencies, and departments of 
the Tribes. 
(15) TRUST
FUND.—The term ‘‘Trust Fund’’ 
means the Se´lisˇ-Qlispe´ Ksanka Settlement Trust 
Fund established under section 8(a). 
(b) DEFINITIONS OF CERTAIN TERMS.—Any term used 
but not defined in this Act, including the terms ‘‘Existing 
Use’’, ‘‘Historic Farm Deliveries’’, ‘‘Instream Flow’’, ‘‘Min-
imum Reservoir Pool Elevations’’, and ‘‘Reservation’’, shall 
have the meaning given the term in article II of the Com-
pact. 
SEC. 4. RATIFICATION OF COMPACT. 
(a) RATIFICATION.— 
(1) IN GENERAL.—As modified by this Act, the 
Compact is authorized, ratified, and confirmed. 
(2) AMENDMENTS.—Any amendment to the 
Compact is authorized, ratified, and confirmed, to the 
extent that such an amendment— 
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(A) is executed to ensure that the Compact 
is consistent with this Act; or 
(B)(i) is approved by the Secretary; 
(ii) concerns nonmonetary matters; and 
(iii) does not affect the water rights of the 
Tribes determined in the Compact, or any other 
property held in trust by the United States on 
behalf of the Tribes or allottees. 
(3) MODIFICATIONS.—Nothing in this Act— 
(A) precludes the Secretary from approving 
a modification to the Compact, including an ap-
pendix or exhibit to the Compact, that is con-
sistent with this Act; or 
(B) authorizes amendments or modifica-
tions that otherwise require congressional ap-
proval under— 
(i) section 2116 of the Revised Statutes 
(25 U.S.C. 177); or 
(ii) any other applicable Federal law. 
(b) EXECUTION.—To the extent that the Compact does 
not conflict with this Act, the Secretary shall execute the 
Compact, including all exhibits to, appendices to, and parts 
of the Compact requiring the signature of the Secretary. 
(c) ENVIRONMENTAL COMPLIANCE.— 
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4654 
(1) IN GENERAL.—In implementing the Compact 
and this Act, the Secretary and the Tribes shall en-
sure compliance with— 
(A) the Endangered Species Act of 1973 (16 
U.S.C. 1531 et seq.); 
(B) the National Environmental Policy Act 
of 1969 (42 U.S.C. 4321 et seq.); and 
(C) all other applicable environmental laws 
(including regulations). 
(2) PERFORMANCE
OF
COMPLIANCE
ACTIVI-
TIES.—The Secretary and the Tribes shall perform 
appropriate Federal environmental compliance activi-
ties relating to any activity undertaken by the Sec-
retary or Tribes pursuant to this Act prior to com-
mencement of that activity. 
(3) EFFECT OF EXECUTION.— 
(A) IN
GENERAL.—The execution of the 
Compact by the Secretary under this section 
shall not constitute a major Federal action for 
purposes of the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.). 
(B) COMPLIANCE.—The Secretary shall en-
sure compliance with all Federal laws and regu-
lations necessary to implement the Compact and 
this Act. 
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4655 
(d) PUBLIC AVAILABILITY.—As provided in articles 
IV.I.b (relating to hearings), IV.I.c (relating to the employ-
ment of a water engineer), and IV.I.7.e (relating to Board 
records) of the Compact, and in recognition of section 9 of 
article II of the Montana State Constitution, all records of 
the Flathead Reservation Water Management Board and 
the Water Engineer employed by the Board shall be open 
to public inspection. 
SEC. 5. TRIBAL WATER RIGHT. 
(a) INTENT OF CONGRESS.—It is the intent of Con-
gress to provide to each allottee benefits that are equivalent 
to, or that exceed, the benefits possessed by allottees on the 
day before the date of enactment of this Act, taking into 
consideration— 
(1) the potential risks, cost, and time delay asso-
ciated with litigation that would be resolved by the 
Compact and this Act; 
(2) the availability of funding under this Act 
and from other sources; 
(3) the availability of water from the Tribal 
Water Right; and 
(4) the applicability of section 7 of the Act of 
February 8, 1887 (25 U.S.C. 381), and this Act to 
protect the interests of allottees. 
(b) CONFIRMATION OF TRIBAL WATER RIGHT.— 
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(1) IN GENERAL.—The Tribal Water Right is 
ratified, confirmed, and declared to be valid. 
(2) USE.—Any use of the Tribal Water Right 
shall be subject to the terms and conditions of— 
(A) the Compact; and 
(B) this Act. 
(3) CONFLICT.—In the event of a conflict between 
the Compact and this Act, the provisions of this Act 
shall control. 
(c) TRUST STATUS OF TRIBAL WATER RIGHT.—The 
Tribal Water Right— 
(1) shall be held in trust by the United States for 
the use and benefit of the Tribes and allottees in ac-
cordance with this Act; and 
(2) shall not be subject to forfeiture or abandon-
ment. 
(d) ALLOTTEES.— 
(1) APPLICABILITY
OF
ACT
OF
FEBRUARY
8, 
1887.—The provisions of section 7 of the Act of Feb-
ruary 8, 1887 (25 U.S.C. 381), relating to the use of 
water for irrigation purposes shall apply to the Trib-
al Water Right. 
(2) ENTITLEMENTS TO WATER.— 
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4657 
(A) IN
GENERAL.—Any entitlement to 
water of an allottee under Federal law shall be 
satisfied from the Tribal Water Right. 
(B) WATER FOR IRRIGATION.—Each allottee 
shall be entitled to a just and equitable alloca-
tion of water for irrigation purposes, to be en-
forceable under paragraph (3)(B). 
(3) CLAIMS.— 
(A) EXHAUSTION
OF
REMEDIES.—Before 
asserting any claim against the United States 
under section 7 of the Act of February 8, 1887 
(25 U.S.C. 381), or any other applicable law, an 
allottee shall exhaust remedies available under— 
(i) the Law of Administration; or 
(ii) other applicable Tribal law. 
(B) WATER FOR IRRIGATION.—After the ex-
haustion of all remedies available under the Law 
of Administration or other applicable Tribal 
law, an allottee may seek relief under section 7 
of the Act of February 8, 1887 (25 U.S.C. 381), 
or other applicable law, to seek a just and equi-
table allocation of water for irrigation purposes 
under paragraph (2)(B). 
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4658 
(4) AUTHORITY OF SECRETARY.—The Secretary 
shall have the authority to protect the rights of 
allottees in accordance with this section. 
(e) AUTHORITY OF TRIBES.— 
(1) IN GENERAL.—The Tribes shall have the au-
thority to allocate, distribute, and lease the Tribal 
Water Right for any use on the Reservation in ac-
cordance with— 
(A) the Compact; 
(B) the Law of Administration; 
(C) this Act; and 
(D) applicable Federal law. 
(2) OFF-RESERVATION USE.—The Tribes may al-
locate, distribute, and lease the Tribal Water Right 
for off-Reservation use in the State in accordance 
with the Compact, subject to the approval of the Sec-
retary. 
(3) LAND
LEASES
BY
ALLOTTEES.—Notwith-
standing paragraph (1), an allottee may lease any in-
terest in land held by the allottee, together with any 
water right determined to be appurtenant to the in-
terest in land, in accordance with the Law of Admin-
istration. 
(f) LAW OF ADMINISTRATION.— 
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4659 
(1) IN GENERAL.—During the period beginning 
on the date of enactment of this Act and ending on 
the date on which the Law of Administration becomes 
effective on the Reservation, the Secretary shall ad-
minister, with respect to the rights of allottees, the 
Tribal Water Right in accordance with this Act. 
(2) APPROVAL.— 
(A) IN GENERAL.—The Law of Administra-
tion is approved. 
(B) REGISTRATIONS.—As provided in sec-
tions 3 and 4 of article IX of the Montana State 
Constitution and section 1–1–108 of the Law of 
Administration, all water rights and changes of 
use authorized under the Law of Administration, 
including all registrations required by sections 
2–1–101 through 2–1–107, shall be provided to 
the department of natural resources and con-
servation of the State, to be entered into the 
water rights database of the department. 
(3) AMENDMENTS.— 
(A) IN
GENERAL.—An otherwise valid 
amendment to the Law of Administration that 
affects a right of an allottee shall not be effective 
unless the amendment is approved by the Sec-
retary in accordance with this subsection. 
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4660 
(B) APPROVAL PERIOD.— 
(i) IN
GENERAL.—Subject to clause 
(ii), the Secretary shall approve or dis-
approve an amendment to the Law of Ad-
ministration not later than 180 days after 
the date of ratification of the amendment by 
the Tribes and the State. 
(ii) EXTENSION.—The deadline de-
scribed in clause (i) may be extended by the 
Secretary after consultation with the Tribes. 
(4) CONFLICT.—In the event of a conflict between 
the Law of Administration and this Act, the provi-
sions of this Act shall control. 
(g) ADMINISTRATION.— 
(1) ALIENATION.—The Tribes shall not perma-
nently alienate any portion of the Tribal Water 
Right. 
(2) PURCHASES OR GRANTS OF LAND FROM INDI-
ANS.—An authorization provided by this Act for an 
allocation, distribution, lease, or any other arrange-
ment shall be considered to satisfy any requirement 
for authorization of the action by treaty or convention 
under section 2116 of the Revised Statutes (25 U.S.C. 
177). 
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4661 
(3) PROHIBITION ON FORFEITURE.—The nonuse 
of all, or any portion of, the Tribal Water Right by 
a lessee or contractor shall not result in the forfeiture, 
abandonment, relinquishment, or other loss of all, or 
any portion of, the Tribal Water Right. 
(h) EFFECT.—Except as otherwise expressly provided 
in this section, nothing in this Act— 
(1) authorizes any action by an allottee against 
any individual or entity, or against the Tribes, under 
Federal, State, Tribal, or local law; or 
(2) alters or affects the status of any action 
brought pursuant to section 1491(a) of title 28, 
United States Code. 
SEC. 6. STORAGE ALLOCATION FROM HUNGRY HORSE RES-
ERVOIR. 
(a) STORAGE ALLOCATION TO TRIBES.— 
(1) IN GENERAL.—Subject to paragraph (2), the 
Secretary shall allocate to the Tribes 90,000 acre-feet 
per year, as measured at the Hungry Horse Dam, of 
storage water in Hungry Horse Reservoir for use by 
the Tribes for any beneficial purpose on or off the 
Reservation under a water right held by the United 
States and managed by the Bureau of Reclamation. 
(2) LIMITATIONS.—The allocation under para-
graph (1) shall be subject to— 
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(A) Appendix 7 to the Compact, entitled 
‘‘Flathead Basin Tribal Depletions Study’’, pre-
pared by the Bureau of Reclamation, and dated 
September 2012; and 
(B) Appendix 8 to the Compact, entitled 
‘‘Hungry Horse Reservoir, Montana: Biological 
Impact Evaluation and Operational Constraints 
for a proposed 90,000-acre-foot withdrawal’’, 
prepared by the State, as revised on September 
14, 2011. 
(b) TREATMENT.— 
(1) IN
GENERAL.—The allocation under sub-
section (a) shall be considered to be part of the Tribal 
Water Right. 
(2) ADMINISTRATION.—The Tribes shall admin-
ister the water allocated under subsection (a) in ac-
cordance with, and subject to the limitations of, the 
Compact and this Act. 
(c) ALLOCATION AGREEMENT.— 
(1) IN GENERAL.—As a condition of receiving 
the allocation under subsection (a), the Tribes shall 
enter into an agreement with the Secretary to estab-
lish the terms and conditions of the allocation, in ac-
cordance with the Compact and this Act. 
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(2) INCLUSIONS.—The agreement under para-
graph (1) shall include provisions establishing that— 
(A) the agreement shall be without a limit 
as to a term; 
(B) the Tribes, and not the United States, 
shall be entitled to all consideration due to the 
Tribes under any lease, contract, or agreement 
entered into by the Tribes pursuant to subsection 
(d); 
(C) the United States shall have no obliga-
tion to monitor, administer, or account for— 
(i) any funds received by the Tribes as 
consideration under any lease, contract, or 
agreement entered into by the Tribes pursu-
ant to subsection (d); or 
(ii) the expenditure of those funds; 
(D) if the capacity or function of any facil-
ity of Hungry Horse Reservoir or Hungry Horse 
Dam is significantly reduced, or is anticipated 
to be significantly reduced, for an extended pe-
riod of time, the Tribes shall have the same stor-
age rights as other storage contractors with re-
spect to the allocation under subsection (a); 
(E) the costs associated with the construc-
tion and operation of the storage facilities at 
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Hungry Horse Reservoir and Hungry Horse 
Dam allocable to the Tribes shall be nonreim-
bursable; 
(F) no water service capital charge shall be 
due or payable for the agreement or any water 
allocated under subsection (a), regardless of 
whether that water is delivered for use by the 
Tribes or under a lease, contract, or by an agree-
ment entered into by the Tribes pursuant to sub-
section (d); 
(G) the Tribes shall not be required to make 
payments to the United States for the agreement 
or any water allocated under subsection (a), ex-
cept for each acre-foot of stored water leased or 
transferred for industrial purposes; 
(H) for each acre-foot of stored water leased 
by the Tribes for industrial purposes— 
(i) the Tribes shall pay annually to the 
United States an amount sufficient to cover 
the proportionate share of the annual oper-
ation, maintenance, and replacement costs 
for the Hungry Horse Project allocable to 
that quantity of water; and 
(ii) the annual payments of the Tribes 
shall be reviewed and adjusted, as appro-
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priate, to reflect the actual operation, main-
tenance, and replacement costs for the Hun-
gry Horse Project; and 
(I) the costs described in subparagraphs (G) 
and (H) shall not apply to any lease or transfer 
for industrial purposes to— 
(i) any entity of the Tribes; or 
(ii) any entity wholly owned by the 
Tribes. 
(d) AGREEMENTS BY TRIBES.—The Tribes may use, 
lease, contract, exchange, or enter into other agreements for 
use of the water allocated under subsection (a) if— 
(1) the water that is the subject of the agreement 
is used within the Flathead Basin or the Clark Fork 
Basin within the State; and 
(2) the agreement does not permanently alienate 
any portion of water allocated under subsection (a). 
(e) MITIGATION
WATER.—Notwithstanding section 
5(e)(2), the Tribes shall make available for lease not more 
than 11,000 acre-feet per year of the water allocated under 
subsection (a), in accordance with the Compact. 
(f) NO CARRYOVER STORAGE.—The allocation under 
subsection (a) shall not be increased by any year-to-year 
carryover storage. 
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(g) DEVELOPMENT
AND
DELIVERY
COSTS.—The 
United States shall not be required to pay the cost of devel-
oping or delivering any water allocated under subsection 
(a). 
(h) NEW
USES.—Except as provided in article 
III.C.1.c of the Compact, the Tribes shall not develop any 
new use for the allocation under subsection (a) until the 
date on which the agreement entered into under subsection 
(c) takes effect. 
(i) EFFECTIVE DATE.—The allocation under sub-
section (a) takes effect on the enforceability date. 
SEC. 7. IRRIGATION PROJECT-RELATED COMPACT IMPLE-
MENTATION. 
(a) PURPOSES.—The purposes of this section are— 
(1) to implement key provisions of the Compact 
regarding the Tribal Water Right by authorizing and 
carrying out the activities described in subsection (b) 
relative to components of the Flathead Indian irriga-
tion project, in order— 
(A) to conserve water resources, enhance fish 
and wildlife habitat, especially habitat of threat-
ened and endangered species, and improve the 
movement of fish through and around Flathead 
Indian irrigation project facilities; 
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(B) to ensure that the necessary water sup-
plies are provided to protect Instream Flow, Ex-
isting Uses, and Historic Farm Deliveries; 
(C) to provide for the safe and efficient stor-
age, delivery, and routing of water; and 
(D) to dedicate the water thereby saved 
through modernization and rehabilitation activi-
ties to the water rights of the Tribes for Instream 
Flow and Minimum Reservoir Pool Elevations; 
(2) to require that, in carrying out the activities 
under subsection (b), the Secretary and the Tribes— 
(A) are guided by existing studies commis-
sioned by the Secretary and the Tribes that iden-
tify current facility conditions and describe fu-
ture modernization recommendations; 
(B) recognize the need to maintain flexi-
bility and modify the guidance provided by the 
studies described in subparagraph (A), as appro-
priate and consistent with the processes estab-
lished and entities designated in the Compact; 
and 
(C) carry out all such activities that can be 
accomplished in a cost-effective manner and that 
are consistent with the Compact; and 
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(3) to ensure the prudent and knowledgeable con-
servation, management, and protection of the water 
resources of the Reservation through the activities de-
scribed in subsection (b), which will ensure the protec-
tion of the Reservation as the permanent homeland of 
the Tribes in accordance with the treaty between the 
United States and the Tribes concluded at Hell Gate 
on July 16, 1855 (12 Stat. 975). 
(b) ACTIVITIES.—Subject to the availability of appro-
priations, the Secretary, or on the request of the Tribes, the 
Tribes on behalf of the Secretary under title IV of the In-
dian Self-Determination and Education Assistance Act (25 
U.S.C. 5361 et seq.), shall in accordance with subsection 
(c) carry out the following activities relating to the Flat-
head Indian irrigation project: 
(1) REHABILITATION AND MODERNIZATION.— 
(A) Rehabilitation and modernization of 
structures, canals, and pumping facilities, in-
cluding dam safety improvements, irrigation fa-
cility upgrades that improve water management 
and operational control at irrigation diversion 
works, and irrigation facility upgrades to reduce 
losses in conveyance of water from irrigation 
sources of supply to irrigation points of use, in 
accordance with the Compact. 
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4669 
(B) Planning, design, and construction of 
additional pumping facilities. 
(C) Operational improvements to infra-
structure within the distribution network of the 
Flathead Indian irrigation project. 
(D) Reconstruction, replacement, and auto-
mation at irrigation diversion works. 
(E) Lining of open canals, and placement 
of open canals in pipe. 
(F) Fencing and physical project access en-
hancements. 
(2) MITIGATION, RECLAMATION, AND RESTORA-
TION.— 
(A) Mitigation, reclamation, and restora-
tion of streams, wetlands, banks, slopes, and 
wasteways within, appurtenant to, or affected by 
the Flathead Indian irrigation project. 
(B) The installation of screens, barriers, 
passages, or ladders to prevent fish entrainment 
in irrigation ditches and canals within, or ap-
purtenant to, the Flathead Indian irrigation 
project. 
(3) ACQUISITION OF INTERESTS.—Acquisition of 
easements or other interests in real property necessary 
to carry out any activity under this section. 
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(c) ENVIRONMENTAL COMPLIANCE.— 
(1) IN GENERAL.—Prior to the commencement of 
any activity under subsection (b), the Secretary, or 
the Tribes if the Tribes elect to perform the activities 
on behalf of the Secretary under title IV of the Indian 
Self-Determination and Education Assistance Act (25 
U.S.C. 5361 et seq.), shall perform appropriate envi-
ronmental, cultural, and historical compliance activi-
ties relating to the activity, including to ensure com-
pliance with— 
(A) the National Environmental Policy Act 
of 1969 (42 U.S.C. 4321 et seq.); and 
(B) division A of subtitle III of title 54, 
United States Code (formerly known as the ‘‘Na-
tional Historic Preservation Act’’ (16 U.S.C. 470 
et seq.)). 
(2) COSTS.—All costs associated with the per-
formance of compliance activities under paragraph 
(1) shall be paid with funds deposited in the Trust 
Fund, on the condition that any costs associated with 
the performance of Federal approval or other review 
of such compliance work or costs associated with in-
herently Federal functions shall remain the responsi-
bility of the Secretary. 
(d) FUNDING.— 
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4671 
(1) INDIAN
SELF-DETERMINATION
AND
EDU-
CATION ASSISTANCE ACT COMPACTING.— 
(A) FUNDING
AUTHORITY
AND
AGREE-
MENTS.—Notwithstanding any other provision of 
law, if the Tribes elect to perform all activities 
described in subsection (b) on behalf of the Sec-
retary, the Secretary shall enter into a self-gov-
ernance agreement with the Tribes under title IV 
of the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 5361 et seq.) covering 
all such activities. 
(B) FUNDING AGREEMENTS.—The Secretary 
shall use funds only from the Salish and 
Kootenai Compact Account established under sec-
tion 8(b)(1) for any funding agreement, includ-
ing any related contract support costs, under 
which the Tribes carry out activities described in 
subsection (b). 
(C) TIMING FOR ELECTION.—Not later than 
120 days after the date on which funds are first 
appropriated for deposit in the Trust Fund, or 
not later than such alternative later date as is 
agreed to by the Tribes and the Secretary, the 
Tribes may elect to perform all activities de-
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4672 
scribed in subsection (b) on behalf of the Sec-
retary. 
(D) APPLICABILITY OF ISDEAA.—Any funds 
transferred for use in a funding agreement under 
this paragraph shall be subject to— 
(i) title IV of the Indian Self-Deter-
mination and Education Assistance Act (25 
U.S.C. 5361 et seq.); and 
(ii) the self-governance agreement and 
funding agreement entered into between the 
Tribes and the Secretary. 
(E) RELATION
TO
COMPACT.—The Tribes 
and the Federal Government— 
(i) shall carry out the activities de-
scribed in subsection (b) in a manner that 
is consistent with, and fulfills, the respective 
obligations of the Tribes and the Federal 
Government under the Compact; and 
(ii) may not carry out any action pur-
suant to the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 5301 
et seq.) that is inconsistent with the rights 
and responsibilities under the Compact. 
(F) APPLICABILITY
OF
CERTAIN
ISDEAA 
PROVISIONS.—For purposes of this Act— 
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(i) the ‘‘annual trust evaluation’’ re-
quired under section 403(d) of the Indian 
Self-Determination and Education Assist-
ance Act (25 U.S.C. 5363(d)) shall monitor 
the performance, and progress toward com-
pletion, of activities under subsection (b) 
that the Tribes are carrying out; 
(ii) the activities described in sub-
section (b) shall be considered to be ‘‘con-
struction programs or projects’’ under sec-
tion 403(e) of the Indian Self-Determina-
tion and Education Assistance Act (25 
U.S.C. 5363(e)); and 
(iii) reporting requirements regarding 
planning, design, and the use and expendi-
ture of funds shall be negotiated and in-
cluded within a funding agreement. 
(2) SECRETARIAL
PERFORMANCE
OF
ACTIVI-
TIES.—If the Tribes do not elect to carry out the ac-
tivities described in subsection (b) by the deadline es-
tablished under paragraph (1)(C), the Secretary shall 
carry out the activities using amounts made available 
under section 8(c)(3). 
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4674 
(3) NONREIMBURSABILITY OF COSTS.—All costs 
incurred in carrying out this section shall be nonre-
imbursable. 
(4) ADMINISTRATION.— 
(A) IN GENERAL.—Subject to subparagraph 
(B), the Secretary and the Tribes shall negotiate 
the cost of any oversight activity carried out by 
the Secretary under any agreement entered into 
under paragraph (1)(A). 
(B) REQUIREMENT.—All costs associated 
with an oversight activity— 
(i) shall be paid with funds deposited 
in the Salish and Kootenai Compact Ac-
count established under section 8(b)(1); and 
(ii) notwithstanding subsection (c), 
may include costs associated with review or 
approval of environmental compliance work 
and related Federal functions. 
(C) LIMITATION ON COST.—The total cost 
described in subparagraph (A) shall not exceed 3 
percent of the total project costs for each project. 
(e) TREATMENT.—Any activities carried out pursuant 
to subsection (b) that result in improvements, additions, or 
modifications to the Flathead Indian irrigation project, in-
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cluding the acquisition of any real property interest, 
shall— 
(1) become a part of the Flathead Indian irriga-
tion project; and 
(2) be recorded in the inventory of the Secretary 
relating to the Flathead Indian irrigation project. 
(f) EASEMENTS AND RIGHTS-OF-WAY.— 
(1) TRIBAL EASEMENTS AND RIGHTS-OF-WAY.— 
(A) IN GENERAL.—On request of the Sec-
retary, the Tribes shall grant, at no cost to the 
United States, such easements and rights-of-way 
over Tribal land as are necessary for construc-
tion relating to an activity under this section. 
(B) JURISDICTION.—An easement or right- 
of-way granted by the Tribes pursuant to sub-
paragraph (A) shall not affect in any respect the 
civil or criminal jurisdiction of the Tribes over 
the easement or right-of-way. 
(2) LANDOWNER
EASEMENTS
AND
RIGHTS-OF- 
WAY.—In partial consideration for the construction 
activities associated with the rehabilitation and mod-
ernization of the Flathead Indian irrigation project 
authorized by this section, and as a condition of re-
ceiving service from the Flathead Indian irrigation 
project, a willing landowner shall confirm or grant, 
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4676 
at no cost to the United States or the Tribes, such 
easements and rights-of-way over the land of the land-
owner as may be necessary for— 
(A) an activity authorized by this section; 
or 
(B) access to and operation and mainte-
nance of— 
(i) the Flathead Indian irrigation 
project; or 
(ii) the Mission Valley Power Project. 
(3) CONDEMNATION NOT AUTHORIZED.—Nothing 
in this section authorizes the Secretary to condemn 
interests in land for the Flathead Indian irrigation 
project. 
(g) LAND
ACQUIRED
BY
UNITED
STATES
OR 
TRIBES.—Any land acquired within the boundaries of the 
Reservation by the United States on behalf of the Tribes, 
or by the Tribes on behalf of the Tribes and conveyed to 
the United States, in connection with the purposes of this 
section shall be held in trust by the United States for the 
benefit of the Tribes. 
(h) EFFECT.—Nothing in this section— 
(1) alters any applicable law under which the 
Bureau of Indian Affairs collects assessments or car-
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4677 
ries out the operation and maintenance of the Flat-
head Indian irrigation project; or 
(2) impacts the availability of amounts under 
section 9. 
(i) WATER SOURCE FOR FLATHEAD INDIAN IRRIGA-
TION PROJECT.— 
(1) IN GENERAL.—The water source for the Flat-
head Indian irrigation project— 
(A) shall be determined in accordance with 
article II(32) of the Compact; and 
(B) shall consist of— 
(i) the water right set forth in article 
III.C.1.a of the Compact; and 
(ii) any use of water for irrigation and 
incidental purposes pursuant to an applica-
ble water service contract. 
(2) ENTITLEMENT TO DELIVERY OF WATER.— 
Entitlement to delivery of available irrigation water 
for assessed parcels shall be determined in accordance 
with article IV.D.2 of the Compact. 
SEC. 8. SE´ LISˇ -QLISPE´ KSANKA SETTLEMENT TRUST FUND. 
(a) ESTABLISHMENT.—The Secretary shall establish 
in the Treasury of the United States a trust fund, to be 
known as the ‘‘Se´lisˇ-Qlispe´ Ksanka Settlement Trust 
Fund’’, to be allocated, maintained, managed, invested, and 
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4678 
distributed by the Secretary, and to remain available until 
expended, consisting of the amounts deposited in the Trust 
Fund under section 9(a), together with any interest earned 
on those amounts, for the purpose of carrying out this Act. 
(b) ACCOUNTS.—The Secretary shall establish in the 
Trust Fund the following accounts: 
(1) The Salish and Kootenai Compact Account, 
for the uses described in paragraphs (1) and (2) of 
subsection (h). 
(2) The Salish and Kootenai Settlement Imple-
mentation Account, for any use described in sub-
section (h). 
(c) DEPOSITS.— 
(1) IN GENERAL.—The Secretary shall deposit in 
the Trust Fund the amounts made available pursuant 
to section 9(a)(1). 
(2) ALLOCATION INTO ACCOUNTS.— 
(A) IN GENERAL.—Subject to subparagraph 
(B), each year, the Secretary shall allocate from 
the Trust Fund amounts into each of the ac-
counts described in paragraphs (1) and (2) of 
subsection (b) in such proportions as the Sec-
retary and the Tribes may agree. 
(B) REQUIREMENT.—In any year, if the 
Tribes and the Secretary are unable to agree on 
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4679 
the amounts to be allocated under subparagraph 
(A) for that year, the Secretary shall deposit 
equal sums in each account. 
(3) TRANSFER.—If the Tribes do not elect to 
carry out the activities described in subsection (b) of 
section 7 by the deadline described in subsection 
(d)(1)(C) of that section, the Secretary, on an annual 
basis, shall transfer funds from the account estab-
lished under subsection (b)(1) to an appropriate pro-
grammatic account solely for the purpose of carrying 
out those activities and the activities described in sec-
tion 7(c). 
(d) MANAGEMENT AND INTEREST.— 
(1) MANAGEMENT.—On receipt and deposit of 
the funds into the Trust Fund, the Secretary shall 
manage, invest, and distribute the amounts in accord-
ance with the investment authority of the Secretary 
under— 
(A) the first section of the Act of June 24, 
1938 (25 U.S.C. 162a); 
(B) the American Indian Trust Fund Man-
agement Reform Act of 1994 (25 U.S.C. 4001 et 
seq.); and 
(C) this section. 
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4680 
(2) INVESTMENT EARNINGS.—In addition to the 
deposits under section 9(a), any investment earnings, 
including interest, credited to the amounts in the 
Trust Fund shall be available for use in accordance 
with subsection (h). 
(e) AVAILABILITY OF AMOUNTS.— 
(1) IN
GENERAL.—Amounts deposited in the 
Trust Fund (including any investment earnings) 
shall be made available to the Tribes by the Secretary 
beginning on the enforceability date, subject to the re-
quirements of this Act. 
(2) USE.—Notwithstanding paragraph (1), any 
amounts— 
(A) deposited in the account described in 
subsection (b)(1) or transferred to another ac-
count under subsection (c)(3), shall be available 
to the Tribes or the Secretary, as applicable, on 
the date on which the amounts are deposited or 
transferred, for the uses described in subsection 
(h)(1), in accordance with Appendix 3.6 to the 
Compact; and 
(B) deposited in the account described in 
subsection (b)(1) shall be available to the Tribes 
on the date on which the amounts are deposited 
for the uses described in subsection (h)(2). 
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4681 
(f) WITHDRAWALS UNDER AITFMRA.— 
(1) IN
GENERAL.—The Tribes may withdraw 
any portion of the amounts in the account described 
in subsection (b)(2) on approval by the Secretary of 
a Tribal management plan submitted by the Tribes in 
accordance with the American Indian Trust Fund 
Management Reform Act of 1994 (25 U.S.C. 4001 et 
seq.). 
(2) INAPPLICABILITY
OF
AITFMRA.—A with-
drawal from the account described in subsection 
(b)(1)— 
(A) shall be made only in accordance with 
subsection (e) and section 7; and 
(B) notwithstanding any other provision of 
law, shall not be subject to the American Indian 
Trust Fund Management Reform Act of 1994 (25 
U.S.C. 4001 et seq.). 
(3) REQUIREMENTS.— 
(A) IN GENERAL.—In addition to the re-
quirements under the American Indian Trust 
Fund Management Reform Act of 1994 (25 
U.S.C. 4001 et seq.), the Tribal management 
plan under paragraph (1) shall require that the 
Tribes shall spend all amounts withdrawn from 
the Trust Fund and any investment earnings ac-
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4682 
crued through the investments under the Tribal 
management plan in accordance with this Act. 
(B) ENFORCEMENT.—The Secretary may 
carry out such judicial and administrative ac-
tions as the Secretary determines to be necessary 
to enforce the Tribal management plan to ensure 
that amounts withdrawn by the Tribes from the 
Trust Fund pursuant to this subsection are used 
in accordance with this Act. 
(g) EFFECT.—Nothing in this Act provides to the 
Tribes the right to judicial review of a determination by 
the Secretary regarding whether to approve a Tribal man-
agement plan, except under subchapter II of chapter 5, and 
chapter 7 of title 5, United States Code (commonly known 
as the ‘‘Administrative Procedure Act’’). 
(h) USES.—The Tribes may use amounts in the Trust 
Fund to implement the Compact, the Law of Administra-
tion, and this Act for the following purposes: 
(1) To carry out activities described in sub-
sections (b) and (c) of section 7. 
(2) The administration, implementation, and 
management of the Tribal Water Right and the regu-
lation and administration of water rights within the 
Reservation under this Act, the Compact, and the 
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4683 
Law of Administration, and such infrastructure as is 
necessary to meet related programmatic needs. 
(3) To implement the Tribal Water Right 
through rehabilitation and improvement of agricul-
tural Indian land within the Reservation. 
(4) To construct and rehabilitate livestock fenc-
ing on Indian land within the Reservation. 
(5) To mitigate and control noxious weeds on 
land within the Reservation. 
(6) To plan, design, and construct improvements 
to irrigation systems on land served by the Flathead 
Indian irrigation project. 
(7) To install screens, barriers, passages, or lad-
ders to prevent fish entrainment in irrigation ditches 
and canals within the Reservation. 
(8) To plan, design, and construct irrigation fa-
cilities on Indian land within the Reservation that is 
not served by the Flathead Indian irrigation project. 
(9) To plan, design, construct, operate, main-
tain, and replace community water distribution and 
wastewater treatment facilities on the Reservation. 
(10) To develop geothermal water resources on 
Indian land within the Reservation. 
(11) To develop a cultural resources program re-
lating to permitting necessary to conduct the activi-
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4684 
ties authorized under this subsection (including cul-
tural, historical, and archeological reviews, including 
training and certifications) and related infrastructure 
necessary to meet programmatic needs. 
(12) To comply with Federal environmental laws 
for any use authorized by this subsection. 
(13) To repair, rehabilitate, or replace culverts, 
bridges, and roads of the Flathead Indian irrigation 
project and any public or Tribal culverts, bridges, 
and roads that intersect with, or are otherwise located 
within, the supply and distribution network of the 
Flathead Indian irrigation project. 
(i) LIABILITY.—Except with respect to amounts trans-
ferred in accordance with section 7(d), the Secretary shall 
not be liable for the expenditure or investment of any 
amounts withdrawn from the Trust Fund by the Tribes 
under this section. 
(j) EXPENDITURE REPORTS.— 
(1) IN GENERAL.—Not less frequently than an-
nually, the Tribes shall submit to the Secretary an ex-
penditure report describing— 
(A) the amount withdrawn from the Trust 
Fund under this section; and 
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4685 
(B) any authorized activities resulting from 
the use of a withdrawal under a Tribal manage-
ment plan, in accordance with this Act. 
(2) APPLICATION.—Any amounts transferred to 
the Tribes pursuant to a self-governance agreement 
and funding agreement entered into between the 
Tribes and the Secretary under title IV of the Indian 
Self-Determination and Education Assistance Act (25 
U.S.C. 5361 et seq.) shall not be subject to paragraph 
(1). 
(k) OM&R COSTS.—Except as otherwise provided in 
this Act, nothing in this Act affects any obligation of the 
United States with respect to the operation, maintenance, 
and repair of the Flathead Indian irrigation project. 
SEC. 9. FUNDING. 
(a) FUNDING.— 
(1) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to the Sec-
retary for deposit in the Trust Fund $1,000,000,000, 
to remain available until expended, withdrawn, or re-
verted to the general fund of the Treasury. 
(2) MANDATORY FUNDING.— 
(A) IN GENERAL.—On October 1, 2020, and 
on each October 1 thereafter through October 1, 
2029, out of any funds in the Treasury not oth-
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4686 
erwise appropriated, the Secretary of the Treas-
ury shall deposit in the Trust Fund $90,000,000, 
to remain available until expended, withdrawn, 
or reverted to the general fund of the Treasury. 
(B) AVAILABILITY.—Amounts deposited in 
the Trust Fund under subparagraph (A) shall be 
available without further appropriation. 
(b) FLUCTUATION IN COSTS.— 
(1) IN GENERAL.—Of the amounts authorized to 
be appropriated and appropriated to the Trust Fund 
under paragraphs (1) and (2), respectively, of sub-
section (a)— 
(A) $347,200,000 shall be increased or de-
creased, as appropriate, by such amounts as may 
be justified by reason of ordinary fluctuations in 
costs occurring after the date of enactment of this 
Act, as indicated by the Consumer Price Index 
for All Urban Consumers West Urban 50,000 to 
1,500,000 index; 
(B) $111,400,000 shall be increased or de-
creased, as appropriate, by such amounts as may 
be justified by reasons of ordinary fluctuations 
in costs occurring after the date of enactment of 
this Act, as indicated by the Producer Price 
Index for the Bureau of Labor Statistics; and 
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4687 
(C) $1,441,400,000 shall be increased or de-
creased, as appropriate, by such amounts as may 
be justified by reason of ordinary fluctuations in 
costs occurring after the date of enactment of this 
Act, as indicated by the Bureau of Reclamation 
Construction Costs Index–Composite Trend. 
(2) REQUIREMENTS
FOR
ADJUSTMENT
PROC-
ESS.—The adjustment process under this subsection 
shall— 
(A) take into account any agreement 
reached by the Secretary and the Tribes under 
paragraph (4); and 
(B) be repeated for each subsequent amount 
appropriated for deposit in the Trust Fund until 
the amount authorized to be appropriated, as so 
adjusted, has been appropriated. 
(3) PERIOD OF INDEXING.—The period of index-
ing adjustment under this subsection for any incre-
ment of funding shall end on the date on which funds 
are deposited in the Trust Fund. 
(4) AGREEMENT.—Based on the activities likely 
to be conducted using amounts deposited in the Trust 
Fund, the Secretary and the Tribes may agree on 
which provisions of paragraph (1) shall govern the 
fluctuation in costs to be used in calculating the 
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4688 
amount authorized to be appropriated under sub-
section (a)(1). 
(c) LIMITATION ON USE OF RECLAMATION WATER 
SETTLEMENTS FUND.—Notwithstanding any other provi-
sion of law— 
(1) no amounts in the Reclamation Water Settle-
ments Fund established by section 10501(a) of the 
Omnibus Public Land Management Act of 2009 (43 
U.S.C. 407(a)) may be used by the Tribes or the Sec-
retary to carry out any provision of this Act until the 
date that is 10 years after the date of enactment of 
this Act; and 
(2) effective beginning on the date that is 10 
years after that date of enactment, the total amount 
used by the Tribes and the Secretary to carry out this 
Act from the Reclamation Water Settlements Fund 
shall not exceed an amount equal to 50 percent of the 
total amount in the Fund on that date. 
SEC. 10. WAIVERS AND RELEASES OF CLAIMS. 
(a) WAIVERS AND RELEASES.— 
(1) CLAIMS BY TRIBES AND UNITED STATES AS 
TRUSTEE FOR TRIBES.—Subject to the reservation of 
rights and retention of claims under subsection (c), as 
consideration for recognition of the Tribal Water 
Right and other benefits described in the Compact 
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4689 
and this Act, the Tribes, acting on behalf of the Tribes 
and members of the Tribes (but not any member of 
the Tribes as an allottee), and the United States, act-
ing as trustee for the Tribes and the members of the 
Tribes (but not any member of the Tribes as an allot-
tee), shall execute a waiver and release with prejudice 
of all claims for water rights within the State that the 
Tribes, or the United States acting as trustee for the 
Tribes, asserted or could have asserted in any pro-
ceeding, including a State stream adjudication, on or 
before the enforceability date, except to the extent that 
such a right is recognized in the Compact and this 
Act. 
(2) CLAIMS BY UNITED STATES AS TRUSTEE FOR 
ALLOTTEES.—Subject to the reservation of rights and 
the retention of claims under subsection (c), as con-
sideration for recognition of the Tribal Water Right 
and other benefits described in the Compact and this 
Act, the United States, acting as trustee for allottees, 
shall execute a waiver and release with prejudice of 
all claims for water rights within the Reservation 
that the United States, acting as trustee for allottees, 
asserted or could have asserted in any proceeding, in-
cluding a State stream adjudication, on or before the 
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4690 
enforceability date, except to the extent that such a 
right is recognized in the Compact and this Act. 
(3) 
CLAIMS
BY
TRIBES
AGAINST
UNITED 
STATES.—Subject to the reservation of rights and re-
tention of claims under subsection (c), the Tribes, act-
ing on behalf of the Tribes and members of the Tribes 
(but not any member of the Tribes as an allottee), 
shall execute a waiver and release with prejudice of 
all claims against the United States (including any 
agency or employee of the United States) first arising 
before the enforceability date— 
(A) relating to— 
(i) water rights within the State that 
the United States, acting as trustee for the 
Tribes, asserted or could have asserted in 
any proceeding, including the general 
stream adjudication in the State, except to 
the extent that such rights are recognized as 
part of the Tribal Water Right under this 
Act; 
(ii) foregone benefits from nontribal 
use of water, on and off the Reservation (in-
cluding water from all sources and for all 
uses); 
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4691 
(iii) damage, loss, or injury to water, 
water rights, land, or natural resources due 
to loss of water or water rights (including 
damages, losses, or injuries to hunting, fish-
ing, gathering, or cultural rights due to loss 
of water or water rights, claims relating to 
interference with, diversion, or taking of 
water, or claims relating to a failure to pro-
tect, acquire, replace, or develop water, 
water rights, or water infrastructure) with-
in the State; 
(iv) a failure to establish or provide a 
municipal, rural, or industrial water deliv-
ery system on the Reservation; 
(v) damage, loss, or injury to water, 
water rights, land, or natural resources due 
to construction, operation, and management 
of the Flathead Indian irrigation project 
and other Federal land and facilities (in-
cluding damages, losses, or injuries to Trib-
al fisheries, fish habitat, wildlife, and wild-
life habitat); 
(vi) damage, loss, or injury from fail-
ure to protect natural resources and land 
against noxious weeds impacts; 
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4692 
(vii) inadequate compensation for min-
erals extracted; 
(viii) inadequate compensation for 
land and interests in land used for Bureau 
of Indian Affairs roads and wildlife refuges; 
(ix) a failure to provide— 
(I) for operation, maintenance, or 
deferred maintenance for the Flathead 
Indian irrigation project or any other 
irrigation system or irrigation project; 
or 
(II) a dam safety improvement to 
a dam within the Reservation; 
(x) the litigation of claims relating to 
any water right of the Tribes in the State; 
and 
(xi) the negotiation, execution, or 
adoption of the Compact or this Act; 
(B) reserved under subsections (b) through 
(d) of section 6 of the settlement agreement for 
the case entitled ‘‘Nez Perce Tribe v. Salazar’’, 
No. 06cv2239TFH (D.D.C. 2012); and 
(C) arising from the taking or acquisition 
of land or resources of the Tribes for the con-
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4693 
struction or operation of the Flathead Indian ir-
rigation project. 
(4) 
CERTAIN
OFF-RESERVATION
WATER 
RIGHTS.— 
(A) IN
GENERAL.—Notwithstanding the 
confirmation of the water rights of the Tribes de-
scribed in Appendices 28 and 29 to the Compact, 
as consideration for recognition of the Tribal 
Water Right and other benefits described in the 
Compact and this Act, the Tribes shall relinquish 
any right, title, or claim to the water rights lo-
cated within the Flathead basin and described in 
those appendices. 
(B) REQUIREMENT.—The water rights de-
scribed in subparagraph (A) shall be held solely 
by the State. 
(b) ENFORCEABILITY DATE.—The waivers and releases 
of claims under subsection (a) shall take effect on the date 
on which the Secretary publishes in the Federal Register 
a statement of findings that— 
(1)(A) the Montana Water Court has approved 
the Compact in a manner from which no further ap-
peal may be taken; or 
(B) if the Montana Water Court is found to lack 
jurisdiction, the applicable United States district 
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4694 
court has approved the Compact as a consent decree 
from which no further appeal may be taken; 
(2) all amounts authorized to be appropriated 
under section 9 have been appropriated; 
(3) the State has appropriated and paid into an 
interest-bearing escrow account any payments due to 
the Tribes as of the date of enactment of this Act 
under the Compact and this Act; 
(4) the Tribes have ratified the Compact; 
(5) the Secretary has fulfilled the requirements of 
section 6; and 
(6) the waivers and releases described in sub-
section (a) have been executed by the Tribes and the 
Secretary. 
(c) RESERVATION
OF RIGHTS
AND RETENTION
OF 
CLAIMS.—Notwithstanding the waivers and releases under 
subsection (a), the Tribes, acting on behalf of the Tribes and 
members of the Tribes, and the United States, acting as 
trustee for the Tribes and allottees, shall retain— 
(1) all claims relating to— 
(A) the enforcement of, or claims accruing 
after the enforceability date relating to water 
rights recognized under— 
(i) the Compact; 
(ii) any final decree; or 
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4695 
(iii) this Act; and 
(B) activities affecting the quality of water, 
including any claims under— 
(i) the Comprehensive Environmental 
Response, Compensation, and Liability Act 
of 1980 (42 U.S.C. 9601 et seq.), including 
damages to natural resources; 
(ii) the Safe Drinking Water Act (42 
U.S.C. 300f et seq.); 
(iii) the Federal Water Pollution Con-
trol Act (33 U.S.C. 1251 et seq.) (commonly 
referred to as the ‘‘Clean Water Act’’); and 
(iv) any regulations implementing the 
Acts described in clauses (i) through (iii); 
(2) all rights to use and protect water rights ac-
quired after the date of enactment of this Act; 
(3) all claims for damages, losses, or injuries to 
land or natural resources that are— 
(A) not due to loss of water or water rights 
(including hunting, fishing, gathering, or cul-
tural rights); and 
(B) not covered by subsection (a)(3); and 
(4) all rights, remedies, privileges, immunities, 
and powers not specifically waived and released pur-
suant to this Act or the Compact. 
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4696 
(d) EFFECT OF COMPACT AND ACT.—Nothing in the 
Compact or this Act— 
(1) except as otherwise expressly provided in the 
Compact or this Act, reduces or extends the sov-
ereignty (including civil and criminal jurisdiction) of 
any government entity; 
(2) affects the ability of the United States acting 
as sovereign to carry out any activity authorized by 
applicable law, including— 
(A) the Comprehensive Environmental Re-
sponse, Compensation, and Liability Act of 1980 
(42 U.S.C. 9601 et seq.); 
(B) the Safe Drinking Water Act (42 U.S.C. 
300f et seq.); 
(C) the Federal Water Pollution Control Act 
(33 U.S.C. 1251 et seq.) (commonly referred to 
as the ‘‘Clean Water Act’’); and 
(D) any regulations implementing the Acts 
described in subparagraphs (A) through (C); 
(3) affects the ability of the United States to act 
as trustee for any other Indian tribe or allottee of any 
other Indian tribe; 
(4) confers jurisdiction on any State court— 
(A) to interpret Federal law regarding 
health, safety, or the environment; 
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4697 
(B) to determine the duties of the United 
States or any other party under Federal law re-
garding health, safety, or the environment; or 
(C) to conduct judicial review of any Fed-
eral agency action; 
(5) waives any claim of a member of the Tribes 
in an individual capacity that does not derive from 
a right of the Tribes; 
(6) revives any claim waived by the Tribes in 
the case entitled ‘‘Nez Perce Tribe v. Salazar’’, No. 
06cv2239TFH (D.D.C. 2012); or 
(7) revives any claim released by an allottee or 
member of the Tribes in the settlement for the case en-
titled ‘‘Cobell v. Salazar’’, No. 1:96CV01285–JR 
(D.D.C. 2012). 
(e) TOLLING OF CLAIMS.— 
(1) IN
GENERAL.—Each applicable period of 
limitation and time-based equitable defense relating 
to a claim described in this section shall be tolled dur-
ing the period beginning on the date of enactment of 
this Act and ending on the date on which the 
amounts made available to carry out this Act are 
transferred to the Secretary. 
(2) EFFECT OF SUBSECTION.—Nothing in this 
subsection revives any claim or tolls any period of 
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4698 
limitation or time-based equitable defense that ex-
pired before the date of enactment of this Act. 
(f) EXPIRATION.— 
(1) IN GENERAL.—This Act shall expire in any 
case in which— 
(A) the amounts authorized to be appro-
priated by this Act have not been made available 
to the Secretary by not later than— 
(i) January 21, 2031; or 
(ii) such alternative later date as is 
agreed to by the Tribes and the Secretary; 
or 
(B) the Secretary fails to publish a state-
ment of findings under subsection (b) by not 
later than— 
(i) January 21, 2032; or 
(ii) such alternative later date as is 
agreed to by the Tribes and the Secretary, 
after providing reasonable notice to the 
State. 
(2) CONSEQUENCES.—If this Act expires under 
paragraph (1)— 
(A) the waivers and releases under sub-
section (a) shall— 
(i) expire; and 
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4699 
(ii) have no further force or effect; 
(B) the authorization, ratification, con-
firmation, and execution of the Compact under 
section 4 shall no longer be effective; 
(C) any action carried out by the Secretary, 
and any contract or agreement entered into, pur-
suant to this Act shall be void; 
(D) any unexpended Federal funds appro-
priated or made available to carry out the ac-
tivities authorized by this Act, together with any 
interest earned on those funds, and any water 
rights or contracts to use water and title to other 
property acquired or constructed with Federal 
funds appropriated or made available to carry 
out the activities authorized by this Act shall be 
returned to the Federal Government, unless oth-
erwise agreed to by the Tribes and the United 
States and approved by Congress; and 
(E) except for Federal funds used to acquire 
or construct property that is returned to the Fed-
eral Government under subparagraph (D), the 
United States shall be entitled to offset any Fed-
eral funds made available to carry out this Act 
that were expended or withdrawn, or any funds 
made available to carry out this Act from other 
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4700 
Federal authorized sources, together with any in-
terest accrued on those funds, against any claims 
against the United States— 
(i) relating to— 
(I) water rights in the State as-
serted by— 
(aa) the Tribes; or 
(bb) any user of the Tribal 
Water Right; or 
(II) any other matter covered by 
subsection (a)(3); or 
(ii) in any future settlement of water 
rights of the Tribes or an allottee. 
SEC. 11. SATISFACTION OF CLAIMS. 
(a) TRIBAL CLAIMS.—The benefits realized by the 
Tribes under this Act shall be in complete replacement of, 
complete substitution for, and full satisfaction of all claims 
of the Tribes against the United States waived and released 
pursuant to paragraphs (1) and (3) of section 10(a). 
(b) ALLOTTEE CLAIMS.—The benefits realized by 
allottees under this Act shall be in complete replacement 
of, complete substitution for, and full satisfaction of— 
(1) all claims waived and released pursuant to 
section 10(a)(2); and 
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4701 
(2) any claims of an allottee against the United 
States that an allottee asserted or could have asserted 
that are similar in nature to a claim described in sec-
tion 10(a)(2). 
SEC. 12. NATIONAL BISON RANGE RESTORATION. 
(a) FINDINGS; PURPOSES.— 
(1) FINDINGS.—Congress finds that— 
(A) the Reservation was set aside for the 
Tribes in 1855 under the treaty between the 
United States and the Tribes concluded at Hell 
Gate on July 16, 1855 (12 Stat. 975); 
(B) the National Bison Range was estab-
lished as a conservation measure in 1908, a time 
when the bison were at grave risk of extinction; 
(C) the National Bison Range is located in 
the middle of the Reservation on land that was 
acquired by the United States in what was later 
held, in the civil action entitled ‘‘Confederated 
Salish and Kootenai Tribes of the Flathead In-
dian Reservation, Montana v. United States’’ 
(437 F.2d 458 (Ct.Cl. 1971)), to be a taking 
under the Fifth Amendment to the Constitution 
of the United States; 
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4702 
(D) the Tribes never consented to the re-
moval of the land described in subparagraph (C) 
from Tribal ownership; 
(E) since time immemorial until the estab-
lishment of the National Bison Range, the Tribes 
had used the land described in subparagraph (C) 
for— 
(i) hunting, fishing, and gathering; 
and 
(ii) cultural and many other purposes; 
(F)(i) in the 1870s, when slaughter resulted 
in the risk of bison extinction, a Pend d’Oreille 
man named Little Falcon Robe received ap-
proval from leaders of the Tribes to bring or-
phaned bison calves across the Continental Di-
vide to the Reservation for purposes of starting 
a herd for subsistence and conservation purposes; 
(ii) starting with just a few bison calves, 
the animals grew into a large herd under the 
stewardship of members of the Tribes, who later 
included Michel Pablo and Charles Allard; and 
(iii) the Reservation was the home of that 
free-ranging herd of bison for decades before the 
establishment of the National Bison Range; 
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4703 
(G) when the Reservation was opened for 
homesteading, a free-ranging bison herd was no 
longer feasible, resulting in Michel Pablo selling 
the herd to off-Reservation interests; 
(H) many of the bison, or their descendants, 
from the Tribal member-managed herd were re-
purchased and brought back to the Reservation to 
form the original herd for the National Bison 
Range; 
(I) the bison herd at the National Bison 
Range descends largely from a herd started and 
managed as described in subparagraph (F); 
(J) the Tribes— 
(i) have played a substantive role as 
conservation leaders, often in partnership 
with the National Bison Range; 
(ii) have demonstrated a long-term 
commitment to responsible management of 
the land and resources surrounding the Na-
tional Bison Range; and 
(iii) desire to carry out the purposes 
for which the National Bison Range was es-
tablished; 
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4704 
(K) the Tribes have extensive experience in 
wildlife and natural resources management, in-
cluding— 
(i) the establishment and management 
of the 91,000-acre Mission Mountains Trib-
al Wilderness, the first tribally designated 
wilderness area in the United States; 
(ii) special management districts for 
large animals, such as the Little Money 
Bighorn Sheep Management Area and the 
Ferry Basin Elk Management Area; and 
(iii) the restoration and management 
of bighorn sheep populations, peregrine fal-
cons, and trumpeter swans on the Reserva-
tion; 
(L) the Tribes have an extensive history of 
successful partnerships with Federal agencies 
with respect to issues such as— 
(i) threatened and endangered species 
management; 
(ii) migratory waterfowl management; 
and 
(iii) wetland habitat management; 
(M)(i) the Tribes have entered into prior 
management-related agreements relating to the 
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4705 
National Bison Range under title IV of the In-
dian Self-Determination and Education Assist-
ance Act (25 U.S.C. 5361 et seq.); and 
(ii) the Tribes and the United States desire 
to build on past and current partnerships, as 
well as honor and advance the Federal and Trib-
al objectives of increasing Tribal autonomy and 
Tribal governmental capacity; 
(N) since the establishment of the National 
Bison Range, additional herds of bison have been 
established on other national wildlife refuges and 
national parks; 
(O) the facts and history regarding the Fed-
eral Government, the Tribes, the bison, and land 
on the Reservation acquired for the National 
Bison Range are exceptional circumstances that 
warrant action by Congress; and 
(P) the United States should hold title in 
and to the land comprising the National Bison 
Range, with beneficial title of the land being re-
stored to the Tribes for— 
(i) continued bison conservation; 
(ii) other wildlife and natural resource 
management purposes; and 
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4706 
(iii) other nonconflicting purposes of 
the Tribes. 
(2) PURPOSES.—The purposes of this section 
are— 
(A) to acknowledge the history, culture, and 
ecological stewardship of the Tribes with respect 
to the land on the Reservation acquired for the 
National Bison Range, bison, and other natural 
resources; 
(B) to ensure that the land, bison, and other 
resources referred to in subparagraph (A) con-
tinue to be protected and enhanced; 
(C) to continue public access and edu-
cational opportunities; and 
(D) to ensure a smooth transition for land, 
bison, and other natural resources as the land is 
restored to Federal trust ownership for the ben-
efit of the Tribes. 
(b) DEFINITION OF NATIONAL BISON RANGE.—In this 
section, the term ‘‘National Bison Range’’ means all land 
within the Reservation that was reserved for the national 
bison range under the matter under the heading ‘‘NATIONAL 
BISON RANGE’’ under the heading ‘‘MISCELLANEOUS’’ under 
the heading ‘‘DEPARTMENT OF AGRICULTURE’’ in the Act 
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4707 
of May 23, 1908 (16 U.S.C. 671) (as in effect on the day 
before the date of enactment of this Act). 
(c) RESTORATION OF LAND.— 
(1) IN
GENERAL.—Notwithstanding any other 
provision of law, for the purposes of conserving bison, 
wildlife, and natural resources, and of safeguarding 
the interests of the Tribes in those resources and the 
traditional, cultural, and other interests of the Tribes, 
all land comprising the National Bison Range (in-
cluding all natural resources, interests, and appur-
tenances of that land) shall be held in trust by the 
United States for the benefit of the Tribes. 
(2) ADMINISTRATION.—The land restored by 
paragraph (1) shall be— 
(A) a part of the Reservation; 
(B) administered under the laws (including 
regulations) applicable to Indian trust land; and 
(C) managed by the Tribes, in accordance 
with paragraph (3), solely for the care and 
maintenance of bison, wildlife, and other natural 
resources, including designation or naming of 
the restored land. 
(3) TRIBAL
MANAGEMENT.—In managing the 
land restored by paragraph (1), the Tribes shall— 
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4708 
(A) provide public access and educational 
opportunities; and 
(B) at all times, have a publicly available 
management plan for the land, bison, and nat-
ural resources, which shall include actions to ad-
dress management and control of invasive weeds. 
(d) CONVEYANCE OF BUILDINGS AND OTHER STRUC-
TURES.— 
(1) IN GENERAL.—The United States shall con-
vey to the Tribes, to own in fee, all ownership inter-
ests of the United States in all buildings, structures, 
improvements, and appurtenances located on the land 
restored by subsection (c)(1). 
(2) PERSONAL
PROPERTY.—The United States 
may convey to the Tribes any personal property 
owned by the United States and found on, or other-
wise associated with, the land restored by subsection 
(c)(1). 
(e) RELINQUISHMENT
OF RIGHTS
TO BISON.—The 
United States relinquishes to the Tribes all interests of 
United States in the bison on the land restored by sub-
section (c)(1). 
(f) TRANSITION.— 
(1) IN
GENERAL.—Notwithstanding any other 
provision of law, during the 2-year period beginning 
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4709 
on the date of enactment of this Act, the Secretary 
shall cooperate with the Tribes in transition activities 
regarding the management of land, bison, and other 
resources conveyed by this Act, including by pro-
viding to the Tribes, as determined to be appropriate 
by the Secretary, funds, personal property, equip-
ment, or other resources for the performance of, or as-
sistance with, the types of activities carried out by the 
Secretary at the National Bison Range as of the date 
of enactment of this Act. 
(2) EFFECT.—Consistent with subsections (c), 
(d), and (e), nothing in this section authorizes the Di-
rector of the United States Fish and Wildlife Service 
to retain ownership or control of any real or personal 
property conveyed by this section, except as the Tribes 
may agree to in writing. 
(g) REPEAL.—The matter under the heading ‘‘NA-
TIONAL
BISON
RANGE’’ under the heading ‘‘MISCELLA-
NEOUS’’ under the heading ‘‘DEPARTMENT
OF
AGRI-
CULTURE’’ in the Act of May 23, 1908 (16 U.S.C. 671), 
is repealed. 
(h) LIABILITY.—The Tribes shall not be liable for any 
land, soil, surface water, groundwater, or other contamina-
tion, injury, or damage resulting from the storage, disposal, 
release, or presence of any hazardous substance (as defined 
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4710 
in section 101 of the Comprehensive Environmental Re-
sponse, Compensation, and Liability Act of 1980 (42 U.S.C. 
9601)) on any portion of the land restored by this section 
on or before the date of the conveyance, unless the Tribes 
would otherwise have been responsible for the storage, dis-
posal, release, or presence. 
(i) CLAIMS AGAINST UNITED STATES.—No claim may 
be brought pursuant to chapter 7 of title 5, United States 
Code, or section 1491 or 1505 of title 28, United States 
Code, against the United States, or any agency, officer, or 
employee 
of 
the 
United 
States, 
concerning 
the 
preconveyance or postconveyance management of the land 
and other property conveyed by this section. 
(j) EFFECT.—Nothing in this section relieves the 
United States of any obligation under section 120(h)(3) of 
the Comprehensive Environmental Response, Compensa-
tion, and Liability Act of 1980 (42 U.S.C. 9620(h)(3)). 
(k) NO PRECEDENT.—The provisions of this section— 
(1) are uniquely suited to address the distinct 
circumstances, facts, history, and relationships in-
volved with the bison, land, and Tribes; and 
(2) are not intended, and shall not be inter-
preted, to establish a precedent for any other situation 
regarding Federal land, property, or facilities. 
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4711 
(l) INDIAN GAMING REGULATORY ACT.—The land re-
stored by this section shall not be eligible or used for any 
gaming activity carried out under the Indian Gaming Reg-
ulatory Act (25 U.S.C. 2701 et seq.). 
SEC. 13. MISCELLANEOUS PROVISIONS. 
(a) AMENDMENTS.— 
(1) ACT OF APRIL 23, 1904.—Section 9 of the Act 
of April 23, 1904 (33 Stat. 304, chapter 1495; 35 
Stat. 450, chapter 216), is amended by striking the 
seventh undesignated paragraph. 
(2) ACT OF MAY 25, 1948.—Section 2 of the Act 
of May 25, 1948 (62 Stat. 269, chapter 340), is 
amended— 
(A) in subsection (h), by striking paragraph 
(6) and inserting the following: 
‘‘(6) To enhance fisheries habitat or to improve 
water conservation management of the project.’’; and 
(B) by adding at the end the following: 
‘‘(k) MISSION VALLEY DIVISION.— 
‘‘(1) IN GENERAL.—The Secretary of the Interior 
(referred to in this section as the ‘Secretary’), or the 
Confederated Salish and Kootenai Tribes of the Flat-
head Reservation of Montana acting on behalf of the 
Secretary, as the entity with the legal authority and 
responsibility to operate the Mission Valley division 
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4712 
of the project (referred to in this subsection as the 
‘project operator’), may allocate revenues derived from 
the Mission Valley division in accordance with para-
graph (2) for the purposes described in subsection 
(h)(6). 
‘‘(2) ALLOCATION.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graphs (B) and (C), the revenues described in 
paragraph (1) shall be allocated by providing— 
‘‘(i) $100,000 to the Tribes; and 
‘‘(ii) $100,000 to the project operator. 
‘‘(B) NEGOTIATION.—Effective beginning on 
October 1 of the tenth calendar year beginning 
after the date of enactment of the Montana Water 
Rights Protection Act, the Confederated Salish 
and Kootenai Tribes of the Flathead Reservation 
of Montana, the State of Montana, and the Sec-
retary may negotiate for an appropriate alloca-
tion that differs from the allocation described in 
subparagraph (A). 
‘‘(C) CARRYOVER.—If the project operator 
does not use the full allocation of the project op-
erator under this paragraph for a fiscal year, an 
amount equal to the difference between the full 
allocation and the amount used by the project 
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operator shall be set aside and accumulated for 
expenditure during subsequent fiscal years for 
the purposes described in subsection (h)(6).’’. 
(3) INDIAN
SELF-DETERMINATION
AND
EDU-
CATION ASSISTANCE ACT.—Section 403(b)(4) of the 
Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 5363(b)(4)) is amended— 
(A) in subparagraph (A), by adding ‘‘and’’ 
at the end; 
(B) in subparagraph (B), by striking ‘‘and’’ 
at the end; and 
(C) by striking subparagraph (C). 
(b) LIENS.—Any lien established by the Act of April 
23, 1904 (33 Stat. 302, chapter 1495; 35 Stat. 449, chapter 
216), is extinguished and released. 
(c) WAIVER
OF SOVEREIGN IMMUNITY.—Except as 
provided in subsections (a) through (c) of section 208 of 
the Department of Justice Appropriation Act, 1953 (43 
U.S.C. 666), nothing in this Act waives the sovereign im-
munity of the United States. 
(d) OTHER TRIBES NOT ADVERSELY AFFECTED.— 
Nothing in this Act quantifies or diminishes any land or 
water right, or any claim or entitlement to land or water, 
of any Indian tribe other than the Tribes. 
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(e) LIMITATION ON CLAIMS FOR REIMBURSEMENT.— 
With respect to Indian land located within the Reserva-
tion— 
(1) the United States shall not submit against 
any Indian-owned land within the Reservation any 
claim for reimbursement of the cost to the United 
States of carrying out this Act or the Compact; and 
(2) no assessment of any Indian-owned land lo-
cated within the Reservation shall be made regarding 
that cost. 
(f) LIMITATION ON LIABILITY OF UNITED STATES.— 
(1) IN GENERAL.—The United States has no ob-
ligation— 
(A) to monitor, administer, or account for, 
in any manner, any funds provided to the Tribes 
by the State; or 
(B) to review or approve any expenditure of 
the funds described in subparagraph (A). 
(2) INDEMNITY.—The Tribes shall indemnify the 
United States, and hold the United States harmless, 
with respect to all claims (including claims for 
takings or breach of trust) arising from the receipt or 
expenditure of amounts to carry out this Act (other 
than claims arising out of activities carried out by 
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4715 
the Tribes with funds transferred in accordance with 
section 7(d)). 
(g) ANTIDEFICIENCY.—The United States shall not be 
liable for any failure to carry out any obligation or activity 
authorized by this Act (including any obligation or activity 
under the Compact) if— 
(1) adequate appropriations are not provided ex-
pressly by Congress to carry out this Act; or 
(2) subject to section 9(c), insufficient funds are 
available to carry out this Act in the Reclamation 
Water Settlements Fund established by section 
10501(a) of the Omnibus Public Land Management 
Act of 2009 (43 U.S.C. 407(a)). 
(h) FEDERAL ADVISORY COMMITTEE ACT.—The Fed-
eral Advisory Committee Act (5 U.S.C. App.) shall not 
apply to any activity or function carried out by the Sec-
retary under this Act. 
(i) COOPERATIVE OPERATION AND MAINTENANCE OF 
FLATHEAD INDIAN IRRIGATION PROJECT.— 
(1) AGREEMENT WITH SECRETARY.—On receipt 
of a joint request from the Tribes and 1 or more irri-
gation districts within the Flathead Indian irrigation 
project, the Secretary shall enter into an agreement 
with the Tribes and the irrigation districts for the co-
operative operation and maintenance of the Flathead 
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4716 
Indian irrigation project, or any portion of the Flat-
head Indian irrigation project, under such form of or-
ganization and under such conditions as may be ac-
ceptable to the Secretary. 
(2) ESTABLISHMENT OF ORGANIZATION.— 
(A) IN GENERAL.—In lieu of entering into 
an agreement under paragraph (1), the Tribes 
and 1 or more irrigation districts within the 
Flathead Indian irrigation project may jointly 
establish an organization for the purpose of en-
tering into an agreement for the operation and 
maintenance of the Flathead Indian irrigation 
project under the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 5301 et 
seq.). 
(B) CONTRACT SUPPORT COSTS.—Any con-
tract support costs pursuant to section 106(a) of 
the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 5325(a)) for an orga-
nization established pursuant to subparagraph 
(A) shall be limited to funds available from an-
nual assessment under part 171 of title 25, Code 
of Federal Regulations (or successor regulations). 
(C) TREATMENT.—An organization estab-
lished pursuant to subparagraph (A) shall be 
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4717 
considered to be a tribal organization (as defined 
in section 4 of the Indian Self-Determination 
and Education Assistance Act (25 U.S.C. 5304)) 
for purposes of that Act. 
(D) ANNUAL O&M ASSESSMENTS.—Nothing 
in this subsection limits the ability of an organi-
zation established pursuant to subparagraph (A) 
to include the costs of administering the Flat-
head Indian irrigation project when establishing 
annual assessment rates in accordance with part 
171 of title 25, Code of Federal Regulations (or 
successor regulations). 
(j) EXCHANGES OF LAND.— 
(1) DEFINITIONS.—In this subsection: 
(A) PUBLIC LAND.—The term ‘‘public land’’ 
means— 
(i) public lands (as defined in section 
103 of the Federal Land Policy and Man-
agement Act of 1976 (43 U.S.C. 1702)); and 
(ii) land managed by the Secretary of 
Agriculture under the jurisdiction of the 
Forest Service. 
(B) SECRETARY
CONCERNED.—The term 
‘‘Secretary concerned’’ means, as applicable— 
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4718 
(i) the Secretary, with respect to the 
public land described in subparagraph 
(A)(i); or 
(ii) the Secretary of Agriculture, with 
respect to the public land described in sub-
paragraph (A)(ii). 
(2) STATE TRUST LAND.— 
(A) IN GENERAL.—The Secretary concerned 
shall offer to negotiate with the State for the pur-
pose of exchanging public land within the State 
for State trust land located within the Reserva-
tion with a total value substantially equal to the 
value of the surface estate of the approximately 
36,808 acres of State trust land obtained by the 
State pursuant to— 
(i) the Act of February 22, 1889 (com-
monly known as the ‘‘Montana Enabling 
Act’’) (25 Stat. 676, chapter 180), and the 
Act of April 23, 1904 (33 Stat. 302, chapter 
1495; 35 Stat. 449, chapter 216); or 
(ii) the Act of February 25, 1920 (41 
Stat. 452). 
(B) PROCEDURES.—An exchange described 
in subparagraph (A) shall be conducted in ac-
cordance with section 206 of the Federal Land 
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4719 
Policy and Management Act of 1976 (43 U.S.C. 
1716). 
(C) VALUATION.—In determining the fair 
market value of land for purposes of subpara-
graph (A), the parties to the exchange shall give 
due consideration to the value of any improve-
ments on the land. 
(D) FINANCIAL
IMPACT.—The Secretary 
concerned shall ensure that land exchanged pur-
suant to this paragraph is selected in a manner 
that minimizes the financial impact on local 
governments, if any. 
(E) ASSISTANCE.—The Secretary concerned 
shall provide such financial or other assistance 
to the State and the Tribes as may be necessary 
to obtain the appraisals, and to satisfy adminis-
trative requirements, necessary to accomplish the 
exchanges under subparagraph (A). 
(F) TITLE.—On approving an exchange 
under this paragraph, the Secretary concerned 
shall— 
(i) receive title in and to the State 
trust land involved in the exchange, on be-
half of the United States; and 
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4720 
(ii) transfer title in and to the public 
land disposed of in the exchanges with the 
State by such means of conveyance as the 
Secretary concerned considers to be appro-
priate. 
(G) TRUST.—Title to the State trust land 
acquired pursuant to an exchange under this 
paragraph shall be— 
(i) vested in the United States in trust 
for the sole use and benefit of the Tribes; 
and 
(ii) recognized as part of the Reserva-
tion. 
(3) REQUIREMENTS.— 
(A) IN GENERAL.—In carrying out para-
graph (2), the Secretary concerned shall, during 
the 5-year period beginning on the date of enact-
ment of this Act, give priority to an exchange of 
public land within the State for State trust land 
owned by the State. 
(B) TOTAL VALUE.—The total value of the 
land exchanged and acquired for the Tribes pur-
suant to this subsection shall not exceed the value 
of the surface estate of the 36,808 acres described 
in paragraph (2)(A). 
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4721 
(C) PRIVATE EXCHANGES.— 
(i) IN GENERAL.—Subject to subpara-
graph (B), if, for any reason, after the expi-
ration of the period described in subpara-
graph (A), the exchanges under paragraph 
(2) have not provided to the Tribes a total 
of 36,808 acres of surface land within the 
boundaries of the Reservation, the Secretary 
concerned shall, at the request of, and in co-
operation with, the Tribes, develop and im-
plement a program to provide to the Tribes 
additional land within the Reservation 
through land exchanges with private land-
owners. 
(ii) REQUIREMENT.—In carrying out 
this subparagraph, the Secretary concerned 
may exchange public land within the State 
for private land of substantially equal value 
within the boundaries of the Reservation, in 
accordance with section 206 of the Federal 
Land Policy and Management Act of 1976 
(43 U.S.C. 1716). 
(D) VALUATION.—In determining the fair 
market value of land under subparagraph (C), 
the parties to an exchange made pursuant to 
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4722 
that subparagraph shall give due consideration 
to the value of improvements on the land. 
(E) TITLE.—If the Secretary concerned ob-
tains private land pursuant to subparagraph 
(C), the Secretary concerned shall transfer title 
to the land to the Tribes. 
(F) TRUST.—Title to any private land or 
public land transferred to the Tribes pursuant to 
this paragraph shall— 
(i) be vested in the United States in 
trust for the sole use and benefit of the 
Tribes; and 
(ii) be recognized as part of the Res-
ervation, if the land is located within the 
boundaries of the Reservation. 
(G) TRIBAL ASSISTANCE.—The Tribes shall 
assist in obtaining prospective willing parties to 
exchange private land within the Reservation for 
public land within the State under this para-
graph. 
(4) PROTECTION
OF
GRAZING
RIGHTS.—State 
trust land that is not adjacent to Tribal land shall 
not be eligible to be exchanged under this subsection. 
(k) REVIEW OF DECISIONS.—A court of competent ju-
risdiction shall review the decisions of the Flathead Res-
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4723 
ervation Water Management Board and the Montana De-
partment of Fish, Wildlife, and Parks in accordance with— 
(1) the Compact; 
(2) the Law of Administration; and 
(3) this Act. 
(l) PAYMENTS TO CERTAIN COUNTIES.— 
(1) PAYMENTS.— 
(A) BY SECRETARY.—Subject to paragraph 
(2), to reduce the financial impact on the coun-
ties in which the land restored by section 12 is 
located, the Secretary shall make payments to 
Lake County and Sanders County in the State, 
out of amounts in the fund established under sec-
tion 401(a) of the Act of June 15, 1935 (16 
U.S.C. 715s(a)). 
(B) BY TRIBES.—To ensure that culverts, 
bridges, and roads that intersect with, or are 
otherwise located within, the supply and dis-
tribution network of the Flathead Indian irriga-
tion project comply with Federal environmental 
requirements, to ensure public safety, and to en-
hance Tribal fisheries on the Reservation, the 
Tribes shall allocate from the Trust Fund 
amounts withdrawn for the purposes described in 
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4724 
section 8(h)(13), under an agreement approved 
by the Secretary— 
(i) $5,000,000 to Lake County in the 
State; and 
(ii) $5,000,000 to Sanders County in 
the State. 
(2) AMOUNT OF PAYMENTS.—The amount of the 
payments under paragraph (1)(A) shall be equal to 
the amount each county would have received if this 
Act had not been enacted. 
(3) TREATMENT
OF
LAND
FOR
PURPOSES
OF 
CALCULATING PAYMENTS.—For the limited purposes 
of calculating payments to Lake County and Sanders 
County under this subsection and section 401 of the 
Act of June 15, 1935 (16 U.S.C. 715s), the land re-
stored by section 13 shall be treated as a fee area (as 
defined in section 401(g) of the Act of June 15, 1935 
(16 U.S.C. 715s(g))). 
(m) EFFECT ON CURRENT LAW.—Nothing in this Act 
authorizes preenforcement judicial review of any Federal 
environmental enforcement action. 
(n) NO PRECEDENT.—The provisions of this Act— 
(1) are uniquely suited to address the distinct 
circumstances, facts, history, and relationships in-
volved; and 
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4725 
(2) are not intended, and shall not be inter-
preted, to establish precedent for any other situation. 
DIVISION 
EE—TAXPAYER 
CER-
TAINTY AND DISASTER TAX 
RELIEF ACT OF 2020 
SEC. 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This division may be cited as the 
‘‘Taxpayer Certainty and Disaster Tax Relief Act of 2020’’. 
(b) AMENDMENT OF 1986 CODE.—Except as otherwise 
expressly provided, whenever in this division an amend-
ment or repeal is expressed in terms of an amendment to, 
or repeal of, a section or other provision, the reference shall 
be considered to be made to a section or other provision 
of the Internal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents of this 
division is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—EXTENSION OF CERTAIN EXPIRING PROVISIONS 
Subtitle A—Certain Provisions Made Permanent 
Sec. 101. Reduction in medical expense deduction floor. 
Sec. 102. Energy efficient commercial buildings deduction. 
Sec. 103. Benefits provided to volunteer firefighters and emergency medical re-
sponders. 
Sec. 104. Transition from deduction for qualified tuition and related expenses to 
increased income limitation on lifetime learning credit. 
Sec. 105. Railroad track maintenance credit. 
Sec. 106. Certain provisions related to beer, wine, and distilled spirits. 
Sec. 107. Refunds in lieu of reduced rates for certain craft beverages produced 
outside the United States. 
Sec. 108. Reduced rates not allowed for smuggled or illegally produced beer, wine, 
and spirits. 
Sec. 109. Minimum processing requirements for reduced distilled spirits rates. 
Sec. 110. Modification of single taxpayer rules. 
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4726 
Subtitle B—Certain Provisions Extended Through 2025 
Sec. 111. Look-thru rule for related controlled foreign corporations. 
Sec. 112. New markets tax credit. 
Sec. 113. Work opportunity credit. 
Sec. 114. Exclusion from gross income of discharge of qualified principal resi-
dence indebtedness. 
Sec. 115. 7-year recovery period for motorsports entertainment complexes. 
Sec. 116. Expensing rules for certain productions. 
Sec. 117. Oil spill liability trust fund rate. 
Sec. 118. Empowerment zone tax incentives. 
Sec. 119. Employer credit for paid family and medical leave. 
Sec. 120. Exclusion for certain employer payments of student loans. 
Sec. 121. Extension of carbon oxide sequestration credit. 
Subtitle C—Extension of Certain Other Provisions 
Sec. 131. Credit for electricity produced from certain renewable resources. 
Sec. 132. Extension and phaseout of energy credit. 
Sec. 133. Treatment of mortgage insurance premiums as qualified residence inter-
est. 
Sec. 134. Credit for health insurance costs of eligible individuals. 
Sec. 135. Indian employment credit. 
Sec. 136. Mine rescue team training credit. 
Sec. 137. Classification of certain race horses as 3-year property. 
Sec. 138. Accelerated depreciation for business property on Indian reservations. 
Sec. 139. American Samoa economic development credit. 
Sec. 140. Second generation biofuel producer credit. 
Sec. 141. Nonbusiness energy property. 
Sec. 142. Qualified fuel cell motor vehicles. 
Sec. 143. Alternative fuel refueling property credit. 
Sec. 144. 2-wheeled plug-in electric vehicle credit. 
Sec. 145. Production credit for Indian coal facilities. 
Sec. 146. Energy efficient homes credit. 
Sec. 147. Extension of excise tax credits relating to alternative fuels. 
Sec. 148. Extension of residential energy-efficient property credit and inclusion 
of biomass fuel property expenditures. 
Sec. 149. Black lung disability trust fund excise tax. 
TITLE II—OTHER PROVISIONS 
Sec. 201. Minimum low-income housing tax credit rate. 
Sec. 202. Depreciation of certain residential rental property over 30-year period. 
Sec. 203. Waste energy recovery property eligible for energy credit. 
Sec. 204. Extension of energy credit for offshore wind facilities. 
Sec. 205. Minimum rate of interest for certain determinations related to life in-
surance contracts. 
Sec. 206. Clarifications and technical improvements to CARES Act employee re-
tention credit. 
Sec. 207. Extension and modification of employee retention and rehiring tax 
credit. 
Sec. 208. Minimum age for distributions during working retirement. 
Sec. 209. Temporary rule preventing partial plan termination. 
Sec. 210. Temporary allowance of full deduction for business meals. 
Sec. 211. Temporary special rule for determination of earned income. 
Sec. 212. Certain charitable contributions deductible by non-itemizers. 
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4727 
Sec. 213. Modification of limitations on charitable contributions. 
Sec. 214. Temporary special rules for health and dependent care flexible spending 
arrangements. 
TITLE III—DISASTER TAX RELIEF 
Sec. 301. Definitions. 
Sec. 302. Special disaster-related rules for use of retirement funds. 
Sec. 303. Employee retention credit for employers affected by qualified disasters. 
Sec. 304. Other disaster-related tax relief provisions. 
Sec. 305. Low-income housing tax credit. 
Sec. 306. Treatment of certain possessions. 
TITLE I—EXTENSION OF 
CERTAIN EXPIRING PROVISIONS 
Subtitle A—Certain Provisions 
Made Permanent 
SEC. 101. REDUCTION IN MEDICAL EXPENSE DEDUCTION 
FLOOR. 
(a) IN GENERAL.—Section 213 is amended— 
(1) by striking ‘‘10 percent’’ in subsection (a) 
and inserting ‘‘7.5 percent’’, and 
(2) by striking subsection (f). 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2020. 
SEC. 102. ENERGY EFFICIENT COMMERCIAL BUILDINGS DE-
DUCTION. 
(a) DEDUCTION MADE PERMANENT.—Section 179D is 
amended by striking subsection (h). 
(b) INFLATION
ADJUSTMENT.—Section 179D, as 
amended by subsection (a), is amended by redesignating 
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4728 
subsection (g) as subsection (h) and by inserting after sub-
section (f) the following new subsection: 
‘‘(g) INFLATION ADJUSTMENT.—In the case of a tax-
able year beginning after 2020, each dollar amount in sub-
section (b) or subsection (d)(1)(A) shall be increased by an 
amount equal to— 
‘‘(1) such dollar amount, multiplied by 
‘‘(2) the cost-of-living adjustment determined 
under section 1(f)(3) for the calendar year in which 
the taxable year begins, determined by substituting 
‘calendar year 2019’ for ‘calendar year 2016’ in sub-
paragraph (A)(ii) thereof. 
Any increase determined under the preceding sentence 
which is not a multiple of 1 cent shall be rounded to the 
nearest cent.’’. 
(c) UPDATE OF STANDARDS.— 
(1) ASHRAE STANDARDS.—Section 179D(c) is 
amended— 
(A) in paragraphs (1)(B)(ii) and (1)(D), by 
striking ‘‘Standard 90.1–2007’’ and inserting 
‘‘Reference Standard 90.1’’, and 
(B) by amending paragraph (2) to read as 
follows: 
‘‘(2) REFERENCE
STANDARD
90.1.—The term 
‘Reference Standard 90.1’ means, with respect to any 
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4729 
property, the most recent Standard 90.1 published by 
the American Society of Heating, Refrigerating, and 
Air Conditioning Engineers and the Illuminating 
Engineering Society of North America which has been 
affirmed by the Secretary, after consultation with the 
Secretary of Energy, for purposes of this section not 
later than the date that is 2 years before the date that 
construction of such property begins.’’. 
(2) CALIFORNIA NONRESIDENTIAL ALTERNATIVE 
CALCULATION METHOD APPROVAL MANUAL.—Section 
179D(d)(2) is amended by striking ‘‘, based on the 
provisions of the 2005 California Nonresidential Al-
ternative Calculation Method Approval Manual’’ and 
inserting ‘‘with respect to any property, based on the 
provisions of the most recent California Nonresiden-
tial Alternative Calculation Method Approval Manual 
which has been affirmed by the Secretary, after con-
sultation with the Secretary of Energy, for purposes 
of this section not later than the date that is 2 years 
before the date that construction of such property be-
gins’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to property placed in service after De-
cember 31, 2020. 
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4730 
SEC. 103. BENEFITS PROVIDED TO VOLUNTEER FIRE-
FIGHTERS AND EMERGENCY MEDICAL RE-
SPONDERS. 
(a) IN GENERAL.—Section 139B is amended by strik-
ing subsection (d). 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2020. 
SEC. 104. TRANSITION FROM DEDUCTION FOR QUALIFIED 
TUITION AND RELATED EXPENSES TO IN-
CREASED INCOME LIMITATION ON LIFETIME 
LEARNING CREDIT. 
(a) INCREASED INCOME LIMITATIONS FOR PHASEOUT 
OF LIFETIME LEARNING CREDIT.— 
(1) IN GENERAL.—Section 25A(d) is amended by 
striking paragraphs (1) and (2), by redesignating 
paragraph (3) as paragraph (2), and by inserting be-
fore paragraph (2) (as so redesignated) the following 
new paragraph: 
‘‘(1) IN GENERAL.—The American Opportunity 
Tax Credit and the Lifetime Learning Credit shall 
each (determined without regard to this paragraph) 
be reduced (but not below zero) by the amount which 
bears the same ratio to each such credit (as so deter-
mined) as— 
‘‘(A) the excess of— 
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‘‘(i) the taxpayer’s modified adjusted 
gross income for such taxable year, over 
‘‘(ii) $80,000 ( $160,000 in the case of 
a joint return), bears to 
‘‘(B) $10,000 ( $20,000 in the case of a 
joint return).’’. 
(2) CONFORMING AMENDMENT.—Section 25A is 
amended by striking subsection (h). 
(b) REPEAL OF DEDUCTION FOR QUALIFIED TUITION 
AND RELATED EXPENSES.— 
(1) IN GENERAL.—Part VII of subchapter B of 
chapter 1 is amended by striking section 222 (and by 
striking the item relating to such section in the table 
of sections for such part). 
(2) CONFORMING AMENDMENTS.— 
(A) Section 62(a) is amended by striking 
paragraph (18). 
(B) Section 74(d)(2)(B) is amended by 
striking ‘‘222,’’. 
(C) Section 86(b)(2)(A) is amended by 
striking ‘‘222,’’. 
(D) Section 135(c)(4)(A) is amended by 
striking ‘‘222,’’. 
(E) Section 137(b)(3)(A) is amended by 
striking ‘‘222,’’. 
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(F) Section 219(g)(3)(A)(ii) is amended by 
striking ‘‘222,’’. 
(G) Section 221(b)(2)(C)(i) is amended by 
striking ‘‘222,’’. 
(H) Section 469(i)(3)(E)(iii) is amended by 
striking ‘‘222,’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2020. 
SEC. 105. RAILROAD TRACK MAINTENANCE CREDIT. 
(a) MADE PERMANENT.—Section 45G is amended by 
striking subsection (f). 
(b) MODIFICATION OF CREDIT RATE.—Section 45G(a) 
is amended by striking ‘‘50 percent’’ and inserting ‘‘40 per-
cent (50 percent in the case of any taxable year beginning 
before January 1, 2023)’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years ending after the date 
of the enactment of this Act. 
SEC. 106. CERTAIN PROVISIONS RELATED TO BEER, WINE, 
AND DISTILLED SPIRITS. 
(a) PRODUCTION PERIOD FOR BEER, WINE, AND DIS-
TILLED SPIRITS.— 
(1) IN GENERAL.—Section 263A(f)(4) is amend-
ed to read as follows: 
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‘‘(4) EXEMPTION FOR AGING PROCESS OF BEER, 
WINE, AND DISTILLED SPIRITS.—For purposes of this 
subsection, the production period shall not include the 
aging period for— 
‘‘(A) beer (as defined in section 5052(a)), 
‘‘(B) wine (as described in section 5041(a)), 
or 
‘‘(C) distilled spirits (as defined in section 
5002(a)(8)), except such spirits that are unfit for 
use for beverage purposes.’’. 
(2) EFFECTIVE DATE.—The amendment made by 
this subsection shall apply to interest costs paid or 
accrued after December 31, 2020. 
(b) REDUCED RATE OF EXCISE TAX ON BEER.— 
(1) IN GENERAL.—Section 5051(a)(1) is amend-
ed to read as follows: 
‘‘(1) IN GENERAL.— 
‘‘(A) IMPOSITION OF TAX.—A tax is hereby 
imposed on all beer brewed or produced, and re-
moved for consumption or sale, within the 
United States, or imported into the United 
States. Except as provided in paragraph (2), the 
rate of such tax shall be— 
‘‘(i) $16 on the first 6,000,000 barrels 
of beer— 
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‘‘(I) brewed by the brewer and re-
moved during the calendar year for 
consumption or sale, or 
‘‘(II) imported by the importer 
into the United States during the cal-
endar year, and 
‘‘(ii) $18 on any barrels of beer to 
which clause (i) does not apply. 
‘‘(B) BARREL.—For purposes of this sec-
tion, a barrel shall contain not more than 31 
gallons of beer, and any tax imposed under this 
section shall be applied at a like rate for any 
other quantity or for fractional parts of a bar-
rel.’’. 
(2) REDUCED
RATE
FOR
CERTAIN
DOMESTIC 
PRODUCTION.—Section 5051(a)(2)(A) is amended— 
(A) in the heading, by inserting ‘‘ $3.50 A 
BARREL’’ before ‘‘RATE’’, and 
(B) by striking ‘‘ $7’’ and all that follows 
through ‘‘January 1, 2021)’’ and inserting ‘‘ 
$3.50’’. 
(3) APPLICATION OF REDUCED TAX RATE FOR 
FOREIGN MANUFACTURERS AND IMPORTERS.—Section 
5051(a) is amended— 
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(A) in paragraph (1)(A)(i)(II), as amended 
by paragraph (1) of this subsection, by inserting 
‘‘but only if the importer is an electing importer 
under paragraph (4) and the barrels have been 
assigned to the importer pursuant to such para-
graph’’ after ‘‘during the calendar year’’, and 
(B) in paragraph (4)— 
(i) in subparagraph (A), by striking 
‘‘paragraph (1)(C)’’ and inserting ‘‘para-
graph (1)(A)’’, and 
(ii) in subparagraph (B), by striking 
‘‘The Secretary’’ and inserting ‘‘The Sec-
retary, after consultation with the Secretary 
of the Department of Homeland Security,’’. 
(4) CONTROLLED GROUP AND SINGLE TAXPAYER 
RULES.—Section 5051(a)(5) is amended by striking 
‘‘paragraph (1)(C)(i)’’ each place it appears and in-
serting ‘‘paragraph (1)(A)(i)’’. 
(5) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to beer removed after 
December 31, 2020. 
(c) TRANSFER OF BEER BETWEEN BONDED FACILI-
TIES.— 
(1) IN GENERAL.—Section 5414 is amended to 
read as follows: 
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‘‘SEC. 5414. TRANSFER OF BEER BETWEEN BONDED FACILI-
TIES. 
‘‘(a) IN GENERAL.—Beer may be removed from one 
brewery to another brewery, without payment of tax, and 
may be mingled with beer at the receiving brewery, subject 
to such conditions, including payment of the tax, and in 
such containers, as the Secretary by regulations shall pre-
scribe, which shall include— 
‘‘(1) any removal from one brewery to another 
brewery belonging to the same brewer, 
‘‘(2) any removal from a brewery owned by one 
corporation to a brewery owned by another corpora-
tion when— 
‘‘(A) one such corporation owns the control-
ling interest in the other such corporation, or 
‘‘(B) the controlling interest in each such 
corporation is owned by the same person or per-
sons, and 
‘‘(3) any removal from one brewery to another 
brewery when— 
‘‘(A) the proprietors of transferring and re-
ceiving premises are independent of each other 
and neither has a proprietary interest, directly 
or indirectly, in the business of the other, and 
‘‘(B) the transferor has divested itself of all 
interest in the beer so transferred and the trans-
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4737 
feree has accepted responsibility for payment of 
the tax. 
‘‘(b) TRANSFER OF LIABILITY FOR TAX.—For purposes 
of subsection (a)(3), such relief from liability shall be effec-
tive from the time of removal from the transferor’s premises, 
or from the time of divestment of interest, whichever is 
later.’’. 
(2) EFFECTIVE DATE.—The amendment made by 
this subsection shall apply to any calendar quarters 
beginning after December 31, 2020. 
(d) REDUCED RATE OF EXCISE TAX ON CERTAIN 
WINE.— 
(1) IN GENERAL.—Section 5041(c) is amended— 
(A) in the heading, by striking ‘‘FOR SMALL 
DOMESTIC PRODUCERS’’, 
(B) by amending paragraph (1) to read as 
follows: 
‘‘(1) ALLOWANCE OF CREDIT.— 
‘‘(A) IN GENERAL.—There shall be allowed 
as a credit against any tax imposed by this title 
(other than chapters 2, 21, and 22) an amount 
equal to the sum of— 
‘‘(i) $1 per wine gallon on the first 
30,000 wine gallons of wine, plus 
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‘‘(ii) 90 cents per wine gallon on the 
first 100,000 wine gallons of wine to which 
clause (i) does not apply, plus 
‘‘(iii) 53.5 cents per wine gallon on the 
first 620,000 wine gallons of wine to which 
clauses (i) and (ii) do not apply, 
which are produced by the producer and removed 
during the calendar year for consumption or 
sale, or which are imported by the importer into 
the United States during the calendar year. 
‘‘(B) ADJUSTMENT OF CREDIT FOR HARD 
CIDER.—In the case of wine described in sub-
section (b)(6), subparagraph (A) of this para-
graph shall be applied— 
‘‘(i) in clause (i) of such subparagraph, 
by substituting ‘6.2 cents’ for ‘ $1’, 
‘‘(ii) in clause (ii) of such subpara-
graph, by substituting ‘5.6 cents’ for ‘90 
cents’, and 
‘‘(iii) in clause (iii) of such subpara-
graph, by substituting ‘3.3 cents’ for ‘53.5 
cents’.’’, 
(C) by striking paragraphs (2) and (8), 
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(D) 
by 
redesignating 
paragraphs 
(3) 
through (6) as paragraphs (2) through (5), re-
spectively, 
(E) by redesignating paragraph (9) as 
paragraph (6), and 
(F) by amending paragraph (7) to read as 
follows: 
‘‘(7) REGULATIONS.—The Secretary may pre-
scribe such regulations as may be necessary to carry 
out the purposes of this subsection, including regula-
tions to ensure proper calculation of the credit pro-
vided in this subsection.’’. 
(2) ALLOWANCE OF CREDIT FOR FOREIGN MANU-
FACTURERS
AND
IMPORTERS.—Section 5041(c), as 
amended by paragraph (1), is amended— 
(A) in paragraph (1)(A), by inserting ‘‘but 
only if the importer is an electing importer 
under paragraph (6) and the wine gallons of 
wine have been assigned to the importer pursu-
ant to such paragraph’’ after ‘‘into the United 
States during the calendar year’’, and 
(B) in paragraph (6)— 
(i) in subparagraph (A), by striking 
‘‘paragraph (8)’’ and inserting ‘‘paragraph 
(1)’’, 
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(ii) in subparagraph (B), by striking 
‘‘The Secretary’’ and inserting ‘‘The Sec-
retary of the Treasury, after consultation 
with the Secretary of the Department of 
Homeland Security,’’, and 
(iii) in subparagraph (C), by striking 
‘‘paragraph (4)’’ and inserting ‘‘paragraph 
(3)’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to wine removed after 
December 31, 2020. 
(e) ADJUSTMENT OF ALCOHOL CONTENT LEVEL FOR 
APPLICATION OF EXCISE TAX RATES.— 
(1) IN GENERAL.—Paragraphs (1) and (2) of 
section 5041(b) are each amended by striking ‘‘14 
percent’’ and all that follows through ‘‘January 1, 
2021’’ and inserting ‘‘16 percent’’. 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to wine removed after 
December 31, 2020. 
(f) DEFINITION OF MEAD AND LOW ALCOHOL BY VOL-
UME WINE.— 
(1) IN GENERAL.—Section 5041(h) is amended— 
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(A) in paragraph (2), by striking ‘‘the Sec-
retary shall’’ each place it appears and inserting 
‘‘the Secretary may’’, and 
(B) by striking paragraph (3). 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to wine removed after 
December 31, 2020. 
(g) REDUCED RATE OF EXCISE TAX ON CERTAIN DIS-
TILLED SPIRITS.— 
(1) IN GENERAL.—Section 5001(c) is amended— 
(A) in the heading, by striking ‘‘TEM-
PORARY REDUCED RATE’’ and inserting ‘‘RE-
DUCED RATE’’, 
(B) in paragraph (3)(B), by striking ‘‘The 
Secretary’’ and inserting ‘‘The Secretary of the 
Treasury, after consultation with the Secretary 
of the Department of Homeland Security,’’, and 
(C) by striking paragraph (4). 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to distilled spirits re-
moved after December 31, 2020. 
(h) BULK DISTILLED SPIRITS.— 
(1) IN GENERAL.—Section 5212 is amended by 
striking ‘‘and before January 1, 2021,’’ and inserting 
‘‘between bonded premises belonging to the same per-
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son or members of the same controlled group (within 
the meaning of section 5001(c)(2))’’. 
(2) NON-BULK
TRANSFERS
RELATED
TO
BOT-
TLING OR STORAGE.—Section 5212 is amended by 
adding at the end the following new sentence: ‘‘In the 
case of distilled spirits transferred in bond from the 
person who distilled or processed such distilled spirits 
(hereinafter referred to as ‘transferor’) to another per-
son for bottling or storage of such distilled spirits, 
and returned to the transferor for removal, this sec-
tion shall be applied without regard to whether dis-
tilled spirits are bulk distilled spirits, but only if the 
transferor retains title during the entire period be-
tween such distillation, or processing, and removal.’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to distilled spirits 
transferred in bond after December 31, 2020. 
(i) SIMPLIFICATION OF RULES REGARDING RECORDS, 
STATEMENTS, AND RETURNS.— 
(1) IN GENERAL.—Section 5555(a) is amended 
by striking ‘‘For calendar quarters beginning after 
the date of the enactment of this sentence, and before 
January 1, 2021, the Secretary’’ and inserting ‘‘The 
Secretary’’. 
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4743 
(2) EFFECTIVE DATE.—The amendment made by 
this subsection shall apply to calendar quarters begin-
ning after December 31, 2020. 
SEC. 107. REFUNDS IN LIEU OF REDUCED RATES FOR CER-
TAIN CRAFT BEVERAGES PRODUCED OUT-
SIDE THE UNITED STATES. 
(a) DISTILLED SPIRITS.— 
(1) IN GENERAL.—Section 5001(c), as amended 
by the preceding provisions of this Act, is amended by 
adding at the end the following new paragraph: 
‘‘(4) REFUNDS IN LIEU OF REDUCED RATES FOR 
FOREIGN
PRODUCTION
REMOVED
AFTER
DECEMBER 
31, 2022.— 
‘‘(A) IN GENERAL.—In the case of any proof 
gallons of distilled spirits which have been pro-
duced outside the United States and imported 
into the United States, if such proof gallons of 
distilled spirits are removed after December 31, 
2022— 
‘‘(i) paragraph (1) shall not apply, 
and 
‘‘(ii) the amount determined under 
subparagraph (B) shall be allowed as a re-
fund, determined for periods not less fre-
quently than quarterly, to the importer in 
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the same manner as if such amount were an 
overpayment of tax imposed by this section. 
‘‘(B) AMOUNT
OF
REFUND.—The amount 
determined under this subparagraph with respect 
to any importer for any period is an amount 
equal to the sum of— 
‘‘(i) the excess (if any) of— 
‘‘(I) the amount of tax imposed 
under this subpart on proof gallons of 
distilled spirits referred to in subpara-
graph (A) which were removed during 
such period, over 
‘‘(II) the amount of tax which 
would have been imposed under this 
subpart on such proof gallons of dis-
tilled spirits if this section were ap-
plied without regard to this paragraph, 
plus 
‘‘(ii) the amount of interest which 
would be allowed and paid on an overpay-
ment of tax at the overpayment rate estab-
lished under section 6621(a)(1) (without re-
gard to the second sentence thereof) were 
such rate applied to the excess (if any) de-
termined under clause (i) for the number of 
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4745 
days in the filing period for which the re-
fund under this paragraph is being deter-
mined. 
‘‘(C) APPLICATION OF RULES RELATED TO 
ELECTIONS
AND
ASSIGNMENTS.—Subparagraph 
(A)(ii) shall apply only if the importer is an 
electing importer under paragraph (3) and the 
proof gallons of distilled spirits have been as-
signed to the importer pursuant to such para-
graph. 
‘‘(D) RULES
FOR
REFUNDS
WITHIN
DAYS.—For purposes of refunds allowed under 
this paragraph, section 6611(e) shall be applied 
by substituting ‘90 days’ for ‘45 days’ each place 
it appears.’’. 
(2) COORDINATION
WITH
DETERMINATION
FOR 
COVER
OVER
TO
PUERTO
RICO
AND
VIRGIN
IS-
LANDS.— 
(A) IN GENERAL.—Section 7652 is amended 
by adding at the end the following new sub-
section: 
‘‘(i) DETERMINATION
OF TAXES COLLECTED.—For 
purposes of subsections (a)(3), (b)(3), and (e)(1), refunds 
under section 5001(c)(4) shall not be taken into account as 
a refund, and the amount of taxes imposed by and collected 
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4746 
under section 5001(a)(1) shall be determined without regard 
to section 5001(c).’’. 
(B) 
CONFORMING
AMENDMENT.—Section 
7652(e) is amended by striking paragraph (5). 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to distilled spirits 
brought into the United States and removed after De-
cember 31, 2022. 
(b) BEER.— 
(1) IN GENERAL.—Section 5051(a) is amended 
by adding at the end the following new paragraph: 
‘‘(6) REFUNDS IN LIEU OF REDUCED RATES FOR 
FOREIGN
PRODUCTION
REMOVED
AFTER
DECEMBER 
31, 2022.— 
‘‘(A) IN GENERAL.—In the case of any bar-
rels of beer which have been produced outside the 
United States and imported into the United 
States, if such barrels of beer are removed after 
December 31, 2022— 
‘‘(i) paragraph (1)(A)(i) shall not 
apply, and 
‘‘(ii) the amount determined under 
subparagraph (B) shall be allowed as a re-
fund, determined for periods not less fre-
quently than quarterly, to the importer in 
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4747 
the same manner as if such amount were an 
overpayment of tax imposed by this section. 
‘‘(B) AMOUNT
OF
REFUND.—The amount 
determined under this subparagraph with respect 
to any importer for any period is an amount 
equal to the sum of— 
‘‘(i) excess (if any) of— 
‘‘(I) the amount of tax imposed 
under this section on barrels of beer re-
ferred to in subparagraph (A) which 
were removed during such period, over 
‘‘(II) the amount of tax which 
would have been imposed under this 
section on such barrels of beer if this 
section were applied without regard to 
this paragraph, plus 
‘‘(ii) the amount of interest which 
would be allowed and paid on an overpay-
ment of tax at the overpayment rate estab-
lished under section 6621(a)(1) (without re-
gard to the second sentence thereof) were 
such rate applied to the excess (if any) de-
termined under clause (i) for the number of 
days in the filing period for which the re-
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fund under this paragraph is being deter-
mined. 
‘‘(C) APPLICATION OF RULES RELATED TO 
ELECTIONS
AND
ASSIGNMENTS.—Subparagraph 
(A)(ii) shall apply only if the importer is an 
electing importer under paragraph (4) and the 
barrels of beer have been assigned to the importer 
pursuant to such paragraph. 
‘‘(D) RULES
FOR
REFUNDS
WITHIN
DAYS.—For purposes of refunds allowed under 
this paragraph, section 6611(e) shall be applied 
by substituting ‘90 days’ for ‘45 days’ each place 
it appears.’’. 
(2) EFFECTIVE DATE.—The amendment made by 
this subsection shall apply to beer removed after De-
cember 31, 2022. 
(c) WINE.— 
(1) IN GENERAL.—Section 5041(c), as amended 
by the preceding provisions of this Act, is amended by 
redesignating paragraph (7) as paragraph (8) and by 
inserting after paragraph (6) the following new para-
graph: 
‘‘(7) REFUNDS IN LIEU OF TAX CREDITS FOR 
FOREIGN
PRODUCTION
REMOVED
AFTER
DECEMBER 
31, 2022.— 
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‘‘(A) IN GENERAL.—In the case of any wine 
gallons of wine which have been produced outside 
the United States and imported into the United 
States, if such wine gallons are removed after 
December 31, 2022— 
‘‘(i) paragraph (1) shall not apply, 
and 
‘‘(ii) the amount determined under 
subparagraph (B) shall be allowed as a re-
fund, determined for periods not less fre-
quently than quarterly, to the importer in 
the same manner as if such amount were an 
overpayment of tax imposed by this section. 
‘‘(B) AMOUNT
OF
REFUND.—The amount 
determined under this subparagraph with respect 
to any importer for any period is an amount 
equal to the sum of— 
‘‘(i) excess (if any) of— 
‘‘(I) the amount of tax imposed 
under this section on wine gallons of 
wine referred to in subparagraph (A) 
which were removed during such pe-
riod, over 
‘‘(II) the amount of tax which 
would have been imposed under this 
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4750 
section (including any allowable cred-
its) on such gallons of wine if this sec-
tion were applied without regard to 
this paragraph, plus 
‘‘(ii) the amount of interest which 
would be allowed and paid on an overpay-
ment of tax at the overpayment rate estab-
lished under section 6621(a)(1) (without re-
gard to the second sentence thereof) were 
such rate applied to the excess (if any) de-
termined under clause (i) for the number of 
days in the filing period for which the re-
fund under this paragraph is being deter-
mined. 
‘‘(C) APPLICATION OF RULES RELATED TO 
ELECTIONS
AND
ASSIGNMENTS.—Subparagraph 
(A)(ii) shall apply only if the importer is an 
electing importer under paragraph (6) and the 
wine gallons of wine have been assigned to the 
importer pursuant to such paragraph. 
‘‘(D) RULES
FOR
REFUNDS
WITHIN
DAYS.—For purposes of refunds allowed under 
this paragraph, section 6611(e) shall be applied 
by substituting ‘90 days’ for ‘45 days’ each place 
it appears.’’. 
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4751 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to wine removed after 
December 31, 2022. 
(d) INFORMATION REPORTING IN CASE OF ASSIGN-
MENT OF LOWER RATES OR REFUNDS BY FOREIGN PRO-
DUCERS OF BEER, WINE, AND DISTILLED SPIRITS.— 
(1) IN GENERAL.—Subpart A of part III of sub-
chapter A of chapter 61 is amended by inserting after 
section 6038D the following new section: 
‘‘SEC. 6038E. INFORMATION WITH RESPECT TO ASSIGN-
MENT OF LOWER RATES OR REFUNDS BY 
FOREIGN PRODUCERS OF BEER, WINE, AND 
DISTILLED SPIRITS. 
‘‘Any foreign producer that elects to make an assign-
ment described in section 5001(c), 5041(c), or 5051(a) shall 
provide such information, at such time and in such man-
ner, as the Secretary may prescribe in order to make such 
assignment, including information about the controlled 
group structure of such foreign producer.’’. 
(2) CLERICAL
AMENDMENT.—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 6038D the following new item: 
‘‘Sec. 6038E. Information with respect to assignment of lower rates or refunds by 
foreign producers of beer, wine, and distilled spirits.’’. 
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4752 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to elections to make an 
assignment under section 5001(c), 5041(c), or 5051(a) 
of the Internal Revenue Code of 1986 after December 
31, 2020. 
(e) ADMINISTRATION OF REFUNDS.—The Secretary of 
the Treasury (or the Secretary’s delegate within the Depart-
ment of the Treasury) shall implement and administer sec-
tions 5001(c)(4), 5041(c)(7), and 5051(a)(6) of the Internal 
Revenue Code of 1986, as added by this Act, in coordination 
with the United States Customs and Border Protection of 
the Department of Homeland Security. 
(f) REGULATIONS.—The Secretary of the Treasury (or 
the Secretary’s delegate within the Department of the Treas-
ury) shall prescribe such regulations as may be necessary 
or appropriate to carry out the purposes of this section, in-
cluding regulations to require foreign producers to provide 
information necessary to enforce the volume limitations 
under sections 5001(c), 5041(c), and 5051(a) of such Code. 
(g) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of the Treasury 
(or the Secretary’s delegate within the Department of the 
Treasury) shall, in coordination with the United States 
Customs and Border Protection of the Department of Home-
land Security, prepare, submit to Congress, and make pub-
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4753 
licly available a report detailing the plans for imple-
menting and administering sections 5001(c)(4), 5041(c)(7), 
and 5051(a)(6) of such Code, as added by this Act. 
SEC. 108. REDUCED RATES NOT ALLOWED FOR SMUGGLED 
OR ILLEGALLY PRODUCED BEER, WINE, AND 
SPIRITS. 
(a) IN GENERAL.—Subpart E of part I of subchapter 
A of chapter 51 is amended by redesignating section 5067 
as section 5068 and by inserting after section 5066 the fol-
lowing new section: 
‘‘SEC. 5067. REDUCED RATES NOT ALLOWED FOR SMUG-
GLED OR ILLEGALLY PRODUCED BEER, WINE, 
OR SPIRITS. 
‘‘In the case of beer, wine, or distilled spirits that are 
smuggled into the United States or produced other than as 
authorized by this chapter— 
‘‘(1) the rates of tax under paragraphs (1)(A)(i) 
and (2) of section 5051(a) shall not apply in the case 
of any such beer, 
‘‘(2) the credit under section 5041(c) shall not 
apply in the case of any such wine, and 
‘‘(3) the rates of tax under section 5001(c) shall 
not apply in the case of any such distilled spirits.’’. 
(b) CLERICAL AMENDMENT.—The table of sections for 
subpart E of part I of subchapter A of chapter 51 is amend-
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ed by striking the last item and inserting the following new 
items: 
‘‘Sec. 5067. Reduced rates not allowed for illegally produced beer, wine, or spirits. 
‘‘Sec. 5068. Cross reference.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to beer, wine, or distilled spirits, as the 
case may be, produced after the date of the enactment of 
this Act. 
SEC. 109. MINIMUM PROCESSING REQUIREMENTS FOR RE-
DUCED DISTILLED SPIRITS RATES. 
(a) IN GENERAL.—Section 5001(c), as amended by the 
preceding provisions of this Act, is amended by adding at 
the end the following: 
‘‘(5) PROCESSED
DISTILLED
SPIRITS.—A dis-
tilled spirit shall not be treated as processed for pur-
poses of this subsection unless a process described in 
section 5002(a)(5)(A) (other than bottling) is per-
formed with respect to such distilled spirit.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to distilled spirits removed after Decem-
ber 31, 2021. 
SEC. 110. MODIFICATION OF SINGLE TAXPAYER RULES. 
(a) BEER.—Section 5051(a)(5)(C) is amended by 
striking ‘‘marketed under a similar brand, license’’ and in-
serting ‘‘under a license’’. 
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(b) WINE.—For single taxpayer rules relating to wine, 
see cross reference under section 5041(c)(3) of the Internal 
Revenue Code of 1986, as redesignated by this Act. 
(c) DISTILLED SPIRITS.— 
(1) IN
GENERAL.—Section 5001(c)(2)(D) is 
amended by striking ‘‘marketed under a similar 
brand, license’’ and inserting ‘‘under a license’’. 
(2) 
APPLICATION
TO
PROCESSORS.—Section 
5001(c)(2)(D) is further amended by inserting ‘‘or 
process’’ after ‘‘that produce’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to beer, wine, and distilled spirits re-
moved after December 31, 2020. 
Subtitle B—Certain Provisions 
Extended Through 2025 
SEC. 111. LOOK-THRU RULE FOR RELATED CONTROLLED 
FOREIGN CORPORATIONS. 
(a) IN GENERAL.—Section 954(c)(6)(C) is amended by 
striking ‘‘January 1, 2021’’ and inserting ‘‘January 1, 
2026’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years of foreign corporations 
beginning after December 31, 2020, and to taxable years 
of United States shareholders with or within which such 
taxable years of foreign corporations end. 
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SEC. 112. NEW MARKETS TAX CREDIT. 
(a) IN GENERAL.—Section 45D(f)(1)(H) is amended 
by striking ‘‘2020’’ and inserting ‘‘for each of calendar 
years 2020 through 2025’’. 
(b) CARRYOVER
OF UNUSED LIMITATION.—Section 
45D(f)(3) is amended by striking ‘‘2025’’ and inserting 
‘‘2030’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to calendar years beginning after De-
cember 31, 2020. 
SEC. 113. WORK OPPORTUNITY CREDIT. 
(a) IN GENERAL.—Section 51(c)(4) is amended by 
striking ‘‘December 31, 2020’’ and inserting ‘‘December 31, 
2025’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to individuals who begin work for the 
employer after December 31, 2020. 
SEC. 114. EXCLUSION FROM GROSS INCOME OF DISCHARGE 
OF QUALIFIED PRINCIPAL RESIDENCE IN-
DEBTEDNESS. 
(a) IN GENERAL.—Section 108(a)(1)(E) is amended 
by striking ‘‘January 1, 2021’’ both places it appears and 
inserting ‘‘January 1, 2026’’. 
(b) MODIFICATION OF MAXIMUM ACQUISITION INDEBT-
EDNESS TAKEN INTO ACCOUNT.—Section 108(h)(2) is 
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amended by striking ‘‘ $2,000,000 ( $1,000,000’’ and insert-
ing ‘‘ $750,000 ( $375,000’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to discharges of indebtedness after De-
cember 31, 2020. 
SEC. 115. 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS 
ENTERTAINMENT COMPLEXES. 
(a) IN GENERAL.—Section 168(i)(15)(D) is amended 
by striking ‘‘December 31, 2020’’ and inserting ‘‘December 
31, 2025’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to property placed in service after De-
cember 31, 2020. 
SEC. 116. EXPENSING RULES FOR CERTAIN PRODUCTIONS. 
(a) EXTENSION.—Section 181(g) is amended by strik-
ing ‘‘December 31, 2020’’ and inserting ‘‘December 31, 
2025’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to productions commencing after Decem-
ber 31, 2020. 
SEC. 117. OIL SPILL LIABILITY TRUST FUND RATE. 
(a) IN GENERAL.—Section 4611(f)(2) is amended by 
striking ‘‘December 31, 2020’’ and inserting ‘‘December 31, 
2025’’. 
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(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply on and after January 1, 2021. 
SEC. 118. EMPOWERMENT ZONE TAX INCENTIVES. 
(a) IN GENERAL.—Section 1391(d)(1)(A)(i) is amend-
ed by striking ‘‘December 31, 2020’’ and inserting ‘‘Decem-
ber 31, 2025’’. 
(b) TERMINATION OF INCREASE IN EXPENSING UNDER 
SECTION 179.—Section 1397A is amended by adding at the 
end the following new subsection: 
‘‘(c) TERMINATION.—This section shall not apply to 
any property placed in service in taxable years beginning 
after December 31, 2020.’’. 
(c) TERMINATION OF NONRECOGNITION OF GAIN ON 
ROLLOVER OF EMPOWERMENT ZONE INVESTMENTS.—Sec-
tion 1397B is amended by adding at the end the following 
new subsection: 
‘‘(c) TERMINATION.—This section shall not apply to 
sales in taxable years beginning after December 31, 2020.’’. 
(d) TREATMENT OF CERTAIN TERMINATION DATES 
SPECIFIED IN NOMINATIONS.—In the case of a designation 
of an empowerment zone the nomination for which included 
a termination date which is contemporaneous with the date 
specified in subparagraph (A)(i) of section 1391(d)(1) of 
the Internal Revenue Code of 1986 (as in effect before the 
enactment of this Act), subparagraph (B) of such section 
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4759 
shall not apply with respect to such designation if, after 
the date of the enactment of this section, the entity which 
made such nomination amends the nomination to provide 
for a new termination date in such manner as the Secretary 
of the Treasury (or the Secretary’s designee) may provide. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2020. 
SEC. 119. EMPLOYER CREDIT FOR PAID FAMILY AND MED-
ICAL LEAVE. 
(a) IN GENERAL.—Section 45S(i) is amended by strik-
ing ‘‘December 31, 2020’’ and inserting ‘‘December 31, 
2025’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to wages paid in taxable years begin-
ning after December 31, 2020. 
SEC. 120. EXCLUSION FOR CERTAIN EMPLOYER PAYMENTS 
OF STUDENT LOANS. 
(a) IN GENERAL.—Section 127(c)(1)(B) is amended by 
striking ‘‘January 1, 2021’’ and inserting ‘‘January 1, 
2026’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to payments made after December 31, 
2020. 
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(1) Section 45(b)(5)(D) is amended by striking 
‘‘January 1, 2021’’ and inserting ‘‘January 1, 2022’’. 
(2) Section 48(a)(5)(E)(iv) is amended by strik-
ing ‘‘January 1, 2021’’ and inserting ‘‘January 1, 
2022’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on January 1, 2021. 
SEC. 132. EXTENSION AND PHASEOUT OF ENERGY CREDIT. 
(a) EXTENSIONS.—Section 48 is amended— 
(1) in subsection (a)— 
(A) in paragraph (2)(A)(i)(II), by striking 
‘‘January 1, 2022’’ and inserting ‘‘January 1, 
2024’’, and 
(B) in paragraph (3)(A)— 
(i) in clause (ii), by striking ‘‘January 
1, 2022’’ and inserting ‘‘January 1, 2024’’, 
and 
(ii) in clause (vii), by striking ‘‘Janu-
ary 1, 2022’’ and inserting ‘‘January 1, 
2024’’, and 
(2) in subsection (c)— 
(A) in paragraph (1)(D), by striking ‘‘Jan-
uary 1, 2022’’ and inserting ‘‘January 1, 2024’’, 
(B) in paragraph (2)(D), by striking ‘‘Jan-
uary 1, 2022’’ and inserting ‘‘January 1, 2024’’, 
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(C) in paragraph (3)(A)(iv), by striking 
‘‘January 1, 2022’’ and inserting ‘‘January 1, 
2024’’, and 
(D) in paragraph (4)(C), by striking ‘‘Jan-
uary 1, 2022’’ and inserting ‘‘January 1, 2024’’. 
(b) PHASEOUTS.— 
(1) SOLAR ENERGY PROPERTY.—Section 48(a)(6) 
is amended— 
(A) in subparagraph (A)— 
(i) by striking ‘‘January 1, 2022, the 
energy percentage’’ and inserting ‘‘January 
1, 2024, the energy percentage’’, 
(ii) in clause (i), by striking ‘‘January 
1, 2021’’ and inserting ‘‘January 1, 2023’’, 
and 
(iii) in clause (ii), by striking ‘‘after 
December 31, 2020, and before January 1, 
2022’’ and inserting ‘‘after December 31, 
2022, and before January 1, 2024’’, and 
(B) in subparagraph (B), by striking ‘‘be-
gins before January 1, 2022, and which is not 
placed in service before January 1, 2024’’ and 
inserting ‘‘begins before January 1, 2024, and 
which is not placed in service before January 1, 
2026’’. 
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4763 
(2) FIBER-OPTIC SOLAR, QUALIFIED FUEL CELL, 
AND QUALIFIED SMALL WIND ENERGY PROPERTY.— 
Section 48(a)(7) is amended— 
(A) in subparagraph (A)— 
(i) in clause (i), by striking ‘‘January 
1, 2021’’ and inserting ‘‘January 1, 2023’’, 
and 
(ii) in clause (ii), by striking ‘‘after 
December 31, 2020, and before January 1, 
2022’’ and inserting ‘‘after December 31, 
2022, and before January 1, 2024’’, and 
(B) in subparagraph (B), by striking ‘‘Jan-
uary 1, 2024’’ and inserting ‘‘January 1, 2026’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on January 1, 2020. 
SEC. 133. TREATMENT OF MORTGAGE INSURANCE PRE-
MIUMS AS QUALIFIED RESIDENCE INTEREST. 
(a) IN
GENERAL.—Section 163(h)(3)(E)(iv)(I) is 
amended by striking ‘‘December 31, 2020’’ and inserting 
‘‘December 31, 2021’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to amounts paid or accrued after Decem-
ber 31, 2020. 
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SEC. 134. CREDIT FOR HEALTH INSURANCE COSTS OF ELI-
GIBLE INDIVIDUALS. 
(a) IN GENERAL.—Section 35(b)(1)(B) is amended by 
striking ‘‘January 1, 2021’’ and inserting ‘‘January 1, 
2022’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to months beginning after December 31, 
2020. 
SEC. 135. INDIAN EMPLOYMENT CREDIT. 
(a) IN GENERAL.—Section 45A(f) is amended by strik-
ing ‘‘December 31, 2020’’ and inserting ‘‘December 31, 
2021’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2020. 
SEC. 136. MINE RESCUE TEAM TRAINING CREDIT. 
(a) IN GENERAL.—Section 45N(e) is amended by 
striking ‘‘December 31, 2020’’ and inserting ‘‘December 31, 
2021’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2020. 
SEC. 137. CLASSIFICATION OF CERTAIN RACE HORSES AS 3- 
YEAR PROPERTY. 
(a) IN GENERAL.—Section 168(e)(3)(A)(i) is amend-
ed— 
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(1) by striking ‘‘January 1, 2021’’ in subclause 
(I) and inserting ‘‘January 1, 2022’’, and 
(2) by striking ‘‘December 31, 2020’’ in sub-
clause (II) and inserting ‘‘December 31, 2021’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to property placed in service after De-
cember 31, 2020. 
SEC. 138. ACCELERATED DEPRECIATION FOR BUSINESS 
PROPERTY ON INDIAN RESERVATIONS. 
(a) IN GENERAL.—Section 168(j)(9) is amended by 
striking ‘‘December 31, 2020’’ and inserting ‘‘December 31, 
2021’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to property placed in service after De-
cember 31, 2020. 
SEC. 139. AMERICAN SAMOA ECONOMIC DEVELOPMENT 
CREDIT. 
(a) IN GENERAL.—Section 119(d) of division A of the 
Tax Relief and Health Care Act of 2006 is amended— 
(1) by striking ‘‘January 1, 2021’’ each place it 
appears and inserting ‘‘January 1, 2022’’, 
(2) by striking ‘‘first 15 taxable years’’ in para-
graph (1) and inserting ‘‘first 16 taxable years’’, and 
(3) by striking ‘‘first 9 taxable years’’ in para-
graph (2) and inserting ‘‘first 10 taxable years’’. 
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(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2020. 
SEC. 140. SECOND GENERATION BIOFUEL PRODUCER CRED-
IT. 
(a) IN GENERAL.—Section 40(b)(6)(J)(i) is amended 
by striking ‘‘January 1, 2021’’ and inserting ‘‘January 1, 
2022’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to qualified second generation biofuel 
production after December 31, 2020. 
SEC. 141. NONBUSINESS ENERGY PROPERTY. 
(a) IN GENERAL.—Section 25C(g)(2) is amended by 
striking ‘‘December 31, 2020’’ and inserting ‘‘December 31, 
2021’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to property placed in service after De-
cember 31, 2020. 
SEC. 142. QUALIFIED FUEL CELL MOTOR VEHICLES. 
(a) IN GENERAL.—Section 30B(k)(1) is amended by 
striking ‘‘December 31, 2020’’ and inserting ‘‘December 31, 
2021’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to property purchased after December 
31, 2020. 
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the taxpayer, or to heat water for use in 
such a dwelling unit, and 
‘‘(ii) which has a thermal efficiency 
rating of at least 75 percent (measured by 
the higher heating value of the fuel). 
‘‘(B) BIOMASS FUEL.—For purposes of this 
section, the term ‘biomass fuel’ means any plant- 
derived fuel available on a renewable or recur-
ring basis.’’. 
(3) DENIAL OF DOUBLE BENEFIT FOR BIOMASS 
STOVES.— 
(A) IN
GENERAL.—Section 25C(d)(3) is 
amended by adding ‘‘and’’ at the end of subpara-
graph (C), by striking ‘‘, and’’ at the end of sub-
paragraph (D) and inserting a period, and by 
striking subparagraph (E). 
(B) 
CONFORMING
AMENDMENT.—Section 
25C(d) is amended by striking paragraph (6). 
(c) EFFECTIVE DATE.— 
(1) EXTENSION.—The amendments made by sub-
section (a) shall apply to property placed in service 
after December 31, 2020. 
(2) QUALIFIED
BIOMASS
FUEL
PROPERTY
EX-
PENDITURES.—The amendments made by subsection 
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(b) shall apply to expenditures paid or incurred in 
taxable years beginning after December 31, 2020. 
SEC. 149. BLACK LUNG DISABILITY TRUST FUND EXCISE 
TAX. 
(a) IN GENERAL.—Section 4121(e)(2)(A) is amended 
by striking ‘‘December 31, 2020’’ and inserting ‘‘December 
31, 2021’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to sales after December 31, 2020. 
TITLE II—OTHER PROVISIONS 
SEC. 201. MINIMUM LOW-INCOME HOUSING TAX CREDIT 
RATE. 
(a) IN GENERAL.—Subsection (b) of section 42 is 
amended— 
(1) by redesignating paragraph (3) as para-
graph (4), and 
(2) by inserting after paragraph (2) the fol-
lowing new paragraph: 
‘‘(3) MINIMUM CREDIT RATE.—In the case of any 
new or existing building to which paragraph (2) does 
not apply and which is placed in service by the tax-
payer after December 31, 2020, the applicable per-
centage shall not be less than 4 percent.’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to— 
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(1) any building which receives an allocation of 
housing credit dollar amount after December 31, 
2020, and 
(2) in the case of any building any portion of 
which is financed with an obligation described in sec-
tion 42(h)(4)(A), any such building if any such obli-
gation which so finances such building is issued after 
December 31, 2020. 
SEC. 202. DEPRECIATION OF CERTAIN RESIDENTIAL RENT-
AL PROPERTY OVER 30-YEAR PERIOD. 
Section 13204(b) of Public Law 115–97 is amended— 
(1) in paragraph (1), by striking ‘‘paragraph 
(2)’’ and inserting ‘‘paragraphs (2) and (3)’’, and 
(2) by adding at the end the following: 
‘‘(3) CERTAIN
RESIDENTIAL
RENTAL
PROP-
ERTY.—In the case of any residential rental prop-
erty— 
‘‘(A) which was placed in service before 
January 1, 2018, 
‘‘(B) which is held by an electing real prop-
erty trade or business (as defined in section 
163(j)(7)(B) of the Internal Revenue Code of 
1986), and 
‘‘(C) for which subparagraph (A), (B), (C), 
(D), or (E) of section 168(g)(1) of the Internal 
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Revenue Code of 1986 did not apply prior to 
such date, 
the amendments made by subsection (a)(3)(C) shall 
apply to taxable years beginning after December 31, 
2017.’’. 
SEC. 203. WASTE ENERGY RECOVERY PROPERTY ELIGIBLE 
FOR ENERGY CREDIT. 
(a) IN GENERAL.—Section 48(a)(3)(A) is amended by 
striking ‘‘or’’ at the end of clause (vi), by inserting ‘‘or’’ 
at the end of clause (vii), and by adding at the end the 
following new clause: 
‘‘(viii) waste energy recovery prop-
erty,’’. 
(b) APPLICATION OF 30 PERCENT CREDIT.—Section 
48(a)(2)(A)(i) is amended by striking ‘‘and’’ at the end of 
subclause (III) and by adding at the end the following new 
subclause: 
‘‘(V) waste energy recovery prop-
erty, and’’. 
(c) APPLICATION OF PHASEOUT.—Section 48(a)(7) is 
amended— 
(1) by inserting ‘‘waste energy recovery prop-
erty,’’ after ‘‘qualified small wind property,’’, and 
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(2) by striking ‘‘FIBER-OPTIC SOLAR, QUALIFIED 
FUEL
CELL, AND
QUALIFIED
SMALL
WIND’’ in the 
heading thereof and inserting ‘‘CERTAIN OTHER’’. 
(d) DEFINITION.—Section 48(c) is amended by adding 
at the end the following new paragraphs: 
‘‘(5) WASTE ENERGY RECOVERY PROPERTY.— 
‘‘(A) IN GENERAL.—The term ‘waste energy 
recovery property’ means property that generates 
electricity solely from heat from buildings or 
equipment if the primary purpose of such build-
ing or equipment is not the generation of elec-
tricity. 
‘‘(B) CAPACITY
LIMITATION.—The term 
‘waste energy recovery property’ shall not in-
clude any property which has a capacity in ex-
cess of 50 megawatts. 
‘‘(C) NO DOUBLE BENEFIT.—Any waste en-
ergy recovery property (determined without re-
gard to this subparagraph) which is part of a 
system which is a combined heat and power sys-
tem property shall not be treated as waste energy 
recovery property for purposes of this section un-
less the taxpayer elects to not treat such system 
as a combined heat and power system property 
for purposes of this section. 
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‘‘(D) TERMINATION.—The term ‘waste en-
ergy recovery property’ shall not include any 
property the construction of which does not begin 
before January 1, 2024.’’. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall apply to periods after December 31, 2020, 
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. 
SEC. 204. EXTENSION OF ENERGY CREDIT FOR OFFSHORE 
WIND FACILITIES. 
(a) IN GENERAL.—Section 48(a)(5) is amended by 
adding at the end the following new subparagraph: 
‘‘(F) QUALIFIED OFFSHORE WIND FACILI-
TIES.— 
‘‘(i) IN GENERAL.—In the case of any 
qualified offshore wind facility— 
‘‘(I) subparagraph (C)(ii) shall be 
applied by substituting ‘January 1, 
2026’ for ‘January 1, 2022’, 
‘‘(II) subparagraph (E) shall not 
apply, and 
‘‘(III) for purposes of this para-
graph, section 45(d)(1) shall be applied 
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by substituting ‘January 1, 2026’’ for 
‘January 1, 2022’. 
‘‘(ii) QUALIFIED OFFSHORE WIND FA-
CILITY.—For purposes of this subpara-
graph, the term ‘qualified offshore wind fa-
cility’ means a qualified facility (within the 
meaning of section 45) described in para-
graph (1) of section 45(d) (determined with-
out regard to any date by which the con-
struction of the facility is required to begin) 
which is located in the inland navigable 
waters of the United States or in the coastal 
waters of the United States.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to periods after December 31, 2016, 
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). 
SEC. 205. MINIMUM RATE OF INTEREST FOR CERTAIN DE-
TERMINATIONS RELATED TO LIFE INSUR-
ANCE CONTRACTS. 
(a) MODIFICATION OF MINIMUM RATE FOR PURPOSES 
OF CASH VALUE ACCUMULATION TEST.— 
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(1) IN
GENERAL.—Section 7702(b)(2)(A) is 
amended by striking ‘‘an annual effective rate of 4 
percent’’ and inserting ‘‘the applicable accumulation 
test minimum rate’’. 
(2) APPLICABLE ACCUMULATION TEST MINIMUM 
RATE.—Section 7702(b) is amended by adding at the 
end the following new paragraph: 
‘‘(3) APPLICABLE ACCUMULATION TEST MINIMUM 
RATE.—For purposes of paragraph (2)(A), the term 
‘applicable accumulation test minimum rate’ means 
the lesser of— 
‘‘(A) an annual effective rate of 4 percent, 
or 
‘‘(B) the insurance interest rate (as defined 
in subsection (f)(11)) in effect at the time the 
contract is issued.’’. 
(b) MODIFICATION OF MINIMUM RATE FOR PURPOSES 
OF GUIDELINE PREMIUM REQUIREMENTS.— 
(1) IN GENERAL.—Section 7702(c)(3)(B)(iii) is 
amended by striking ‘‘an annual effective rate of 6 
percent’’ and inserting ‘‘the applicable guideline pre-
mium minimum rate’’. 
(2) APPLICABLE GUIDELINE PREMIUM MINIMUM 
RATE.—Section 7702(c)(3) is amended by adding at 
the end the following new subparagraph: 
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‘‘(E) APPLICABLE
GUIDELINE
PREMIUM 
MINIMUM RATE.—For purposes of subparagraph 
(B)(iii), the term ‘applicable guideline premium 
minimum rate’ means the applicable accumula-
tion test minimum rate (as defined in subsection 
(b)(3)) plus 2 percentage points.’’. 
(c) APPLICATION OF MODIFIED MINIMUM RATES TO 
DETERMINATION OF GUIDELINE LEVEL PREMIUM.—Sec-
tion 7702(c)(4) is amended— 
(1) by striking ‘‘4 percent’’ and inserting ‘‘the 
applicable accumulation test minimum rate’’, and 
(2) by striking ‘‘6 percent’’ and inserting ‘‘the 
applicable guideline premium minimum rate’’. 
(d) INSURANCE INTEREST RATE.—Section 7702(f) is 
amended by adding at the end the following new paragraph: 
‘‘(11) INSURANCE
INTEREST
RATE.—For pur-
poses of this section— 
‘‘(A) IN GENERAL.—The term ‘insurance in-
terest rate’ means, with respect to any contract 
issued in any calendar year, the lesser of— 
‘‘(i) the section 7702 valuation interest 
rate for such calendar year (or, if such cal-
endar year is not an adjustment year, the 
most recent adjustment year), or 
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‘‘(ii) the section 7702 applicable Fed-
eral interest rate for such calendar year (or, 
if such calendar year is not an adjustment 
year, the most recent adjustment year). 
‘‘(B) SECTION
7702
VALUATION
INTEREST 
RATE.—The term ‘section 7702 valuation interest 
rate’ means, with respect to any adjustment 
year, the prescribed U.S. valuation interest rate 
for life insurance with guaranteed durations of 
more than 20 years (as defined in the National 
Association of Insurance Commissioners’ Stand-
ard Valuation Law) as effective in the calendar 
year immediately preceding such adjustment 
year. 
‘‘(C) SECTION
7702
APPLICABLE
FEDERAL 
INTEREST RATE.—The term ‘section 7702 appli-
cable Federal interest rate’ means, with respect 
to any adjustment year, the average (rounded to 
the nearest whole percentage point) of the appli-
cable Federal mid-term rates (as defined in sec-
tion 1274(d) but based on annual compounding) 
effective as of the beginning of each of the cal-
endar months in the most recent 60-month pe-
riod ending before the second calendar year prior 
to such adjustment year. 
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‘‘(D) ADJUSTMENT
YEAR.—The term ‘ad-
justment year’ means the calendar year following 
any calendar year that includes the effective date 
of a change in the prescribed U.S. valuation in-
terest rate for life insurance with guaranteed du-
rations of more than 20 years (as defined in the 
National Association of Insurance Commis-
sioners’ Standard Valuation Law). 
‘‘(E) TRANSITION RULE.—Notwithstanding 
subparagraph (A), the insurance interest rate 
shall be 2 percent in the case of any contract 
which is issued during the period that— 
‘‘(i) begins on January 1, 2021, and 
‘‘(ii) ends immediately before the be-
ginning of the first adjustment year that 
beings after December 31, 2021.’’. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall apply to contracts issued after December 31, 
2020. 
SEC. 206. CLARIFICATIONS AND TECHNICAL IMPROVE-
MENTS TO CARES ACT EMPLOYEE RETENTION 
CREDIT. 
(a) GROSS RECEIPTS
OF TAX-EXEMPT ORGANIZA-
TIONS.—Section 2301(c)(2)(C) of the CARES Act is amend-
ed— 
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(1) by striking ‘‘of such Code, clauses (i) and 
(ii)(I)’’ and inserting ‘‘of such Code— 
‘‘(i) clauses (i) and (ii)(I)’’, 
(2) by striking the period at the end and insert-
ing ‘‘, and’’, and 
(3) by adding at the end the following new 
clause: 
‘‘(ii) any reference in this section to 
gross receipts shall be treated as a reference 
to gross receipts within the meaning of sec-
tion 6033 of such Code.’’. 
(b) MODIFICATION OF TREATMENT OF HEALTH PLAN 
EXPENSES.—Section 2301(c) of the CARES Act is amend-
ed— 
(1) by striking subparagraph (C) of paragraph 
(3), and 
(2) in paragraph (5)— 
(A) by striking ‘‘The term’’ and inserting 
the following: 
‘‘(A) IN GENERAL.—The term’’, and 
(B) by adding at the end the following new 
subparagraph: 
‘‘(B) ALLOWANCE
FOR
CERTAIN
HEALTH 
PLAN EXPENSES.— 
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‘‘(i) IN GENERAL.—Such term shall in-
clude amounts paid by the eligible employer 
to provide and maintain a group health 
plan (as defined in section 5000(b)(1) of the 
Internal Revenue Code of 1986), but only to 
the extent that such amounts are excluded 
from the gross income of employees by rea-
son of section 106(a) of such Code. 
‘‘(ii) ALLOCATION
RULES.—For pur-
poses of this section, amounts treated as 
wages under clause (i) shall be treated as 
paid with respect to any employee (and 
with respect to any period) to the extent 
that such amounts are properly allocable to 
such employee (and to such period) in such 
manner as the Secretary may prescribe. Ex-
cept as otherwise provided by the Secretary, 
such allocation shall be treated as properly 
made if made on the basis of being pro rata 
among periods of coverage.’’. 
(c) IMPROVED COORDINATION BETWEEN PAYCHECK 
PROTECTION PROGRAM AND EMPLOYEE RETENTION TAX 
CREDIT.— 
(1) AMENDMENT
TO
PAYCHECK
PROTECTION 
PROGRAM.—Section 7A(a)(12) of the Small Business 
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Act, as redesignated, transferred, and amended by the 
Economic Aid to Hard-Hit Small Businesses, Non-
profits, and Venues Act, is amended by adding at the 
end the following: ‘‘Such payroll costs shall not in-
clude qualified wages taken into account in deter-
mining the credit allowed under section 2301 of the 
CARES Act or qualified wages taken into account in 
determining the credit allowed under subsection (a) or 
(d) of section 303 of the Taxpayer Certainty and Dis-
aster Relief Act of 2020.’’. 
(2) AMENDMENTS TO EMPLOYEE RETENTION TAX 
CREDIT.— 
(A) IN GENERAL.—Section 2301(g) of the 
CARES Act is amended to read as follows: 
‘‘(g) ELECTION TO NOT TAKE CERTAIN WAGES INTO 
ACCOUNT.— 
‘‘(1) IN GENERAL.—This section shall not apply 
to so much of the qualified wages paid by an eligible 
employer as such employer elects (at such time and 
in such manner as the Secretary may prescribe) to 
not take into account for purposes of this section. 
‘‘(2) COORDINATION
WITH
PAYCHECK
PROTEC-
TION PROGRAM.—The Secretary, in consultation with 
the Administrator of the Small Business Administra-
tion, shall issue guidance providing that payroll costs 
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paid during the covered period shall not fail to be 
treated as qualified wages under this section by rea-
son of an election under paragraph (1) to the extent 
that a covered loan of the eligible employer is not for-
given by reason of a decision under section 7A(g) of 
the Small Business Act. Terms used in the preceding 
sentence which are also used in section 7A of the 
Small Business Act shall have the same meaning as 
when used in such section.’’. 
(B) CONFORMING AMENDMENTS.— 
(i) Section 2301 of the CARES Act is 
amended by striking subsection (j). 
(ii) Section 2301(l) of the CARES Act 
is amended by striking paragraph (3) and 
by redesignating paragraphs (4) and (5) as 
paragraphs (3) and (4), respectively. 
(d) REGULATIONS AND GUIDANCE.—Section 2301(l) of 
the CARES Act, as amended by subsection (c)(2)(B)(ii), is 
amended by striking ‘‘and’’ at the end of paragraph (3), 
by striking the period at the end of paragraph (4) and in-
serting ‘‘, and’’, and by adding at the end the following 
new paragraph: 
‘‘(5) to prevent the avoidance of the purposes of 
the limitations under this section, including through 
the leaseback of employees.’’. 
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(e) EFFECTIVE DATE.— 
(1) IN
GENERAL.—The amendments made by 
this section shall take effect as if included in the pro-
visions of the CARES Act to which they relate. 
(2) SPECIAL RULE.— 
(A) IN GENERAL.—For purposes of section 
2301 of the CARES Act, an employer who has 
filed a return of tax with respect to applicable 
employment 
taxes 
(as 
defined 
in 
section 
2301(c)(1) of division A of such Act) before the 
date of the enactment of this Act may elect (in 
such manner as the Secretary of the Treasury (or 
the Secretary’s delegate) shall prescribe) to treat 
any applicable amount as an amount paid in 
the calendar quarter which includes the date of 
the enactment of this Act. 
(B) APPLICABLE AMOUNT.—For purposes of 
subparagraph (A), the term ‘‘applicable amount’’ 
means the amount of wages which— 
(i) are— 
(I) 
described 
in 
section 
2301(c)(5)(B) of the CARES Act, as 
added by the amendments made by 
subsection (b), or 
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4786 
(II) permitted to be treated as 
qualified wages under guidance issued 
pursuant to section 2301(g)(2) of the 
CARES Act (as added by subsection 
(c)), and 
(ii) were— 
(I) paid in a calendar quarter be-
ginning after December 31, 2019, and 
before October 1, 2020, and 
(II) not taken into account by the 
taxpayer in calculating the credit al-
lowed under section 2301(a) of division 
A of such Act for such calendar quar-
ter. 
SEC. 207. EXTENSION AND MODIFICATION OF EMPLOYEE 
RETENTION AND REHIRING TAX CREDIT. 
(a) EXTENSION.— 
(1) IN
GENERAL.—Section 2301(m) of the 
CARES Act is amended by striking ‘‘January 1, 
2021’’ and inserting ‘‘July 1, 2021’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
2301(c)(2)(A)(i) of the CARES Act is amended by 
striking ‘‘during calendar year 2020’’ and inserting 
‘‘during the calendar quarter for which the credit is 
determined under subsection (a)’’. 
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(b) INCREASE
IN
CREDIT
PERCENTAGE.—Section 
2301(a) of the CARES Act is amended by striking ‘‘50 per-
cent’’ and inserting ‘‘70 percent’’. 
(c) INCREASE IN PER EMPLOYEE LIMITATION.—Sec-
tion 2301(b)(1) of the CARES Act is amended by striking 
‘‘for all calendar quarters shall not exceed $10,000’’ and 
inserting ‘‘for any calendar quarter shall not exceed 
$10,000’’. 
(d) MODIFICATIONS TO DEFINITION OF ELIGIBLE EM-
PLOYER.— 
(1) DECREASE
IN
REDUCTION
IN
GROSS
RE-
CEIPTS
NECESSARY
TO
QUALIFY
AS
ELIGIBLE
EM-
PLOYER.— 
(A) 
IN
GENERAL.—Section 
2301(c)(2)(A)(ii)(II) of the CARES Act is 
amended to read as follows: 
‘‘(II) the gross receipts (within the 
meaning of section 448(c) of the Inter-
nal Revenue Code of 1986) of such em-
ployer for such calendar quarter are 
less than 80 percent of the gross re-
ceipts of such employer for the same 
calendar quarter in calendar year 
2019.’’. 
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(B) APPLICATION
TO
EMPLOYERS
NOT
IN 
EXISTENCE
IN
2019.—Section 2301(c)(2)(A) of 
the CARES Act, as amended by subparagraph 
(A), is amended by adding at the end the fol-
lowing new flush sentence: 
‘‘With respect to any employer for any calendar quarter, 
if such employer was not in existence as of the beginning 
of the same calendar quarter in calendar year 2019, clause 
(ii)(II) shall be applied by substituting ‘2020’ for ‘2019’.’’. 
(2) ELECTION TO DETERMINE GROSS RECEIPTS 
TEST BASED ON PRIOR QUARTER.— 
(A) IN
GENERAL.—Subparagraph (B) of 
section 2301(c)(2) of the CARES Act is amended 
to read as follows: 
‘‘(B) ELECTION
TO
USE
ALTERNATIVE 
QUARTER.—At the election of the employer— 
‘‘(i) subparagraph (A)(ii)(II) shall be 
applied— 
‘‘(I) by substituting ‘for the imme-
diately preceding calendar quarter’ for 
‘for such calendar quarter’, and 
‘‘(II) by substituting ‘the cor-
responding calendar quarter in cal-
endar year 2019’ for ‘the same cal-
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endar quarter in calendar year 2019’, 
and 
‘‘(ii) the last sentence of subparagraph 
(A) shall be applied by substituting ‘the cor-
responding calendar quarter in calendar 
year 2019’ for ‘the same calendar quarter in 
calendar year 2019’. 
An election under this subparagraph shall be 
made at such time and in such manner as the 
Secretary shall prescribe.’’. 
(B) 
CONFORMING
AMENDMENT.—Section 
2301(l) of the CARES Act, as amended by sec-
tion 206, is amended by inserting ‘‘and’’ at the 
end of paragraph (3), by striking paragraph (4), 
and by redesignating paragraph (5) as para-
graph (4). 
(3) APPLICATION
TO
CERTAIN
GOVERNMENTAL 
EMPLOYERS.— 
(A) IN GENERAL.—Section 2301(f) of the 
CARES Act is amended— 
(i) by striking ‘‘This’’ and inserting 
the following: 
‘‘(1) IN GENERAL.—This’’, and 
(ii) by adding at the end the following 
new paragraph: 
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‘‘(2) EXCEPTION.—Paragraph (1) shall not 
apply to— 
‘‘(A) any organization described in section 
501(c)(1) of the Internal Revenue Code of 1986 
and exempt from tax under section 501(a) of 
such Code, or 
‘‘(B) any entity described in paragraph (1) 
if — 
‘‘(i) such entity is a college or univer-
sity, or 
‘‘(ii) the principal purpose or function 
of such entity is providing medical or hos-
pital care. 
In the case of any entity described in subpara-
graph (B), such entity shall be treated as satis-
fying 
the 
requirements 
of 
subsection 
(c)(2)(A)(i).’’. 
(B) 
CONFORMING
AMENDMENT.—Section 
2301(c)(5)(A) of the CARES Act, as amended by 
section 206(b)(2), is amended by adding at the 
end the following new sentence: ‘‘For purposes of 
the preceding sentence, in the case of any organi-
zation or entity described in subsection (f)(2), 
wages as defined in section 3121(a) of the Inter-
nal Revenue Code of 1986 shall be determined 
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without regard to paragraphs (5), (6), (7), (10), 
and (13) of section 3121(b) of such Code (except 
with respect to services performed in a penal in-
stitution by an inmate thereof).’’. 
(e) MODIFICATION OF DETERMINATION OF QUALIFIED 
WAGES.— 
(1) MODIFICATION OF THRESHOLD FOR TREAT-
MENT AS A LARGE EMPLOYER.—Section 2301(c)(3)(A) 
of the CARES Act is amended by striking ‘‘100’’ each 
place it appears in clauses (i) and (ii) and inserting 
‘‘500’’. 
(2) 
ELIMINATION
OF
LIMITATION.—Section 
2301(c)(3) of the CARES Act is amended— 
(A) by striking subparagraph (B), and 
(B) by striking ‘‘Such term’’ in the second 
sentence of subparagraph (A) and inserting the 
following: 
‘‘(B) 
EXCEPTION.—The 
term 
‘qualified 
wages’ ’’. 
(f) DENIAL OF DOUBLE BENEFIT.—Section 2301(h) of 
the CARES Act is amended— 
(1) by striking paragraphs (1) and (2) and in-
serting the following: 
‘‘(1) DENIAL OF DOUBLE BENEFIT.—Any wages 
taken into account in determining the credit allowed 
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under this section shall not be taken into account as 
wages for purposes of sections 41, 45A, 45P, 45S, 51, 
and 1396 of the Internal Revenue Code of 1986.’’. 
(2) by redesignating paragraph (3) as para-
graph (2). 
(g) ADVANCE PAYMENTS.— 
(1) IN GENERAL.—Section 2301 of the CARES 
Act, as amended by section 206(c)(2)(B)(i), is amend-
ed by inserting after subsection (i) the following new 
subsection: 
‘‘(j) ADVANCE PAYMENTS.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), no advance payment of the credit under 
subsection (a) shall be allowed. 
‘‘(2) ADVANCE
PAYMENTS
TO
SMALL
EMPLOY-
ERS.— 
‘‘(A) IN GENERAL.—Under rules provided 
by the Secretary, an eligible employer for which 
the average number of full-time employees (with-
in the meaning of section 4980H of the Internal 
Revenue Code of 1986) employed by such eligible 
employer during 2019 was not greater than 500 
may elect for any calendar quarter to receive an 
advance payment of the credit under subsection 
(a) for such quarter in an amount not to exceed 
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70 percent of the average quarterly wages paid 
by the employer in calendar year 2019. 
‘‘(B) SPECIAL
RULE
FOR
SEASONAL
EM-
PLOYERS.—In the case of any employer who em-
ploys seasonal workers (as defined in section 
45R(d)(5)(B) of the Internal Revenue Code of 
1986), the employer may elect to substitute ‘the 
wages for the calendar quarter in 2019 which 
corresponds to the calendar quarter to which the 
election relates’ for ‘the average quarterly wages 
paid by the employer in calendar year 2019’. 
‘‘(C) SPECIAL RULE FOR EMPLOYERS NOT 
IN EXISTENCE IN 2019.—In the case of any em-
ployer that was not in existence in 2019, sub-
paragraphs (A) and (B) shall each be applied by 
substituting ‘2020’ for ‘2019’ each place it ap-
pears. 
‘‘(3) RECONCILIATION OF CREDIT WITH ADVANCE 
PAYMENTS.— 
‘‘(A) IN GENERAL.—The amount of credit 
which would (but for this subsection) be allowed 
under this section shall be reduced (but not below 
zero) by the aggregate payment allowed to the 
taxpayer under paragraph (2). Any failure to so 
reduce the credit shall be treated as arising out 
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of a mathematical or clerical error and assessed 
according to section 6213(b)(1) of the Internal 
Revenue Code of 1986. 
‘‘(B) EXCESS ADVANCE PAYMENTS.—If the 
advance payments to a taxpayer under para-
graph (2) for a calendar quarter exceed the cred-
it allowed by this section (determined without re-
gard to subparagraph (A)), the tax imposed by 
chapter 21 or 22 of the Internal Revenue Code 
of 1986 (whichever is applicable) for the cal-
endar quarter shall be increased by the amount 
of such excess.’’. 
(2) CONFORMING AMENDMENTS.—Section 2301(l) 
of the CARES Act, as amended by section 206 and 
subsection (d)(2)(B), is amended— 
(A) by inserting ‘‘as provided in subsection 
(j)(2)’’ after ‘‘subsection (a)’’ in paragraph (1), 
(B) by striking paragraph (2), and 
(C) by redesignating paragraphs (3) and 
(4) as paragraphs (2) and (3), respectively. 
(h) THIRD-PARTY PAYORS.—Section 2301(l) of the 
CARES Act, as amended by section 206 and subsections 
(d)(2)(B) and (g)(2), is amended by adding at the end the 
following flush sentence: 
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‘‘Any forms, instructions, regulations, or guidance described 
in paragraph (2) shall require the customer to be respon-
sible for the accounting of the credit and for any liability 
for improperly claimed credits and shall require the cer-
tified professional employer organization or other third 
party payor to accurately report such tax credits based on 
the information provided by the customer.’’. 
(i) PUBLIC AWARENESS CAMPAIGN.—Section 2301 of 
the CARES Act is amended by adding at the end the fol-
lowing new subsection: 
‘‘(n) PUBLIC AWARENESS CAMPAIGN.— 
‘‘(1) IN GENERAL.—The Secretary shall conduct 
a public awareness campaign, in coordination with 
the Administrator of the Small Business Administra-
tion, to provide information regarding the avail-
ability of the credit allowed under this section. 
‘‘(2) OUTREACH.—Under the campaign con-
ducted under paragraph (1), the Secretary shall— 
‘‘(A) provide to all employers which re-
ported not more than 500 employees on the most 
recently filed return of applicable employment 
taxes a notice about the credit allowed under this 
section and the requirements for eligibility to 
claim the credit, and 
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‘‘(B) not later than 30 days after the date 
of the enactment of this subsection, provide to all 
employers educational materials relating to the 
credit allowed under this section, including spe-
cific materials for businesses with not more than 
500 employees.’’. 
(j) COORDINATION WITH CERTAIN PAYROLL PROTEC-
TION PROGRAM LOANS.—Section 2301(g)(2) of the CARES 
Act, as added by section 206(c)(2)(A), is amended by strik-
ing ‘‘section 7A(g) of the Small Business Act’’ and all that 
follows and inserting ‘‘section 7A(g) of the Small Business 
Act or the application of section 7(a)(37)(J) of the Small 
Business Act. Terms used in the preceding sentence which 
are also used in section 7A(g) or 7(a)(37)(J) of the Small 
Business Act shall, when applied in connection with either 
such section, have the same meaning as when used in such 
section, respectively.’’. 
(k) EFFECTIVE DATE.—The amendments made by this 
section shall apply to calendar quarters beginning after De-
cember 31, 2020. 
SEC. 208. MINIMUM AGE FOR DISTRIBUTIONS DURING 
WORKING RETIREMENT. 
(a) IN GENERAL.—Paragraph (36) of section 401(a) 
is amended to read as follows: 
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‘‘(36) DISTRIBUTIONS DURING WORKING RETIRE-
MENT.— 
‘‘(A) IN GENERAL.—A trust forming part of 
a pension plan shall not be treated as failing to 
constitute a qualified trust under this section 
solely because the plan provides that a distribu-
tion may be made from such trust to an em-
ployee who has attained age 591⁄2 and who is not 
separated from employment at the time of such 
distribution. 
‘‘(B) CERTAIN EMPLOYEES IN THE BUILD-
ING
AND
CONSTRUCTION
INDUSTRY.—Subpara-
graph (A) shall be applied by substituting ‘age 
55’ for ‘age 591⁄2’ in the case of a multiemployer 
plan described in section 4203(b)(1)(B)(i) of the 
Employee Retirement Income Security Act of 
1974, with respect to individuals who were par-
ticipants in such plan on or before April 30, 
2013, if— 
‘‘(i) the trust to which subparagraph 
(A) applies was in existence before January 
1, 1970, and 
‘‘(ii) before December 31, 2011, at a 
time when the plan provided that distribu-
tions may be made to an employee who has 
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attained age 55 and who is not separated 
from employment at the time of such dis-
tribution, the plan received at least 1 writ-
ten determination from the Internal Rev-
enue Service that the trust to which sub-
paragraph (A) applies constituted a quali-
fied trust under this section.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to distributions made before, on, or after 
the date of the enactment of this Act. 
SEC. 209. TEMPORARY RULE PREVENTING PARTIAL PLAN 
TERMINATION. 
A plan shall not be treated as having a partial termi-
nation (within the meaning of 411(d)(3) of the Internal 
Revenue Code of 1986) during any plan year which in-
cludes the period beginning on March 13, 2020, and ending 
on March 31, 2021, if the number of active participants 
covered by the plan on March 31, 2021 is at least 80 percent 
of the number of active participants covered by the plan 
on March 13, 2020. 
SEC. 210. TEMPORARY ALLOWANCE OF FULL DEDUCTION 
FOR BUSINESS MEALS. 
(a) IN GENERAL.—Section 274(n)(2) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘or’’ at the 
end of subparagraph (B), by striking the period at the end 
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of subparagraph (C)(iv) and inserting ‘‘, or’’, and by insert-
ing after subparagraph (C) the following new subpara-
graph: 
‘‘(D) such expense is— 
‘‘(i) for food or beverages provided by 
a restaurant, and 
‘‘(ii) paid or incurred before January 
1, 2023.’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to amounts paid or incurred after De-
cember 31, 2020. 
SEC. 211. TEMPORARY SPECIAL RULE FOR DETERMINATION 
OF EARNED INCOME. 
(a) IN GENERAL.—If the earned income of the tax-
payer for the taxpayer’s first taxable year beginning in 
2020 is less than the earned income of the taxpayer for the 
preceding taxable year, the credits allowed under sections 
24(d) and 32 of the Internal Revenue Code of 1986 may, 
at the election of the taxpayer, be determined by sub-
stituting— 
(1) such earned income for the preceding taxable 
year, for 
(2) such earned income for the taxpayer’s first 
taxable year beginning in 2020. 
(b) EARNED INCOME.— 
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(1) IN GENERAL.—For purposes of this section, 
the term ‘‘earned income’’ has the meaning given such 
term under section 32(c) of the Internal Revenue Code 
of 1986. 
(2) APPLICATION TO JOINT RETURNS.—For pur-
poses of subsection (a), in the case of a joint return, 
the earned income of the taxpayer for the preceding 
taxable year shall be the sum of the earned income of 
each spouse for such preceding taxable year. 
(c) SPECIAL RULES.— 
(1) 
ERRORS
TREATED
AS
MATHEMATICAL 
ERROR.—For purposes of section 6213 of the Internal 
Revenue Code of 1986, an incorrect use on a return 
of earned income pursuant to subsection (a) shall be 
treated as a mathematical or clerical error. 
(2) NO EFFECT ON DETERMINATION OF GROSS 
INCOME, ETC.—Except as otherwise provided in this 
section, the Internal Revenue Code of 1986 shall be 
applied without regard to any substitution under sub-
section (a). 
SEC. 212. CERTAIN CHARITABLE CONTRIBUTIONS DEDUCT-
IBLE BY NON-ITEMIZERS. 
(a) IN GENERAL.—Section 170 is amended by redesig-
nating subsection (p) as subsection (q) and by inserting 
after subsection (o) the following new subsection: 
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‘‘(p) SPECIAL RULE FOR TAXPAYERS WHO DO NOT 
ELECT TO ITEMIZE DEDUCTIONS.—In the case of any tax-
able year beginning in 2021, if the individual does not elect 
to itemize deductions for such taxable year, the deduction 
under this section shall be equal to the deduction, not in 
excess of $300 ( $600 in the case of a joint return), which 
would be determined under this section if the only chari-
table contributions taken into account in determining such 
deduction were contributions made in cash during such tax-
able year (determined without regard to subsections 
(b)(1)(G)(ii) and (d)(1)) to an organization described in 
section 170(b)(1)(A) and not— 
‘‘(1) to an organization described in section 
509(a)(3), or 
‘‘(2) for the establishment of a new, or mainte-
nance of an existing, donor advised fund (as defined 
in section 4966(d)(2)).’’. 
(b) PENALTY FOR UNDERPAYMENTS ATTRIBUTABLE 
TO OVERSTATED DEDUCTION.— 
(1) IN GENERAL.—Section 6662(b) is amended 
by inserting after paragraph (8) the following: 
‘‘(9) Any overstatement of the deduction provided 
in section 170(p).’’. 
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4802 
(2) INCREASED
PENALTY.—Section 6662 is 
amended by adding at the end the following new sub-
section: 
‘‘(l) INCREASE IN PENALTY IN CASE OF OVERSTATE-
MENT OF QUALIFIED CHARITABLE CONTRIBUTIONS.—In 
the case of any portion of an underpayment which is attrib-
utable to one or more overstatements of the deduction pro-
vided in section 170(p), subsection (a) shall be applied with 
respect to such portion by substituting ‘50 percent’ for ‘20 
percent’.’’. 
(3) EXCEPTION TO APPROVAL OF ASSESSMENT.— 
Section 6751(b)(2)(A) is amended by striking ‘‘or 
6655’’ and inserting ‘‘6655, or 6662 (but only with 
respect to an addition to tax by reason of subsection 
(b)(9) thereof)’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 63(b) is amended by striking ‘‘and’’ 
at the end of paragraph (2), by striking the period at 
the end of paragraph (3) and inserting ‘‘, and’’, and 
by adding at the end the following new paragraph: 
‘‘(4) the deduction provided in section 170(p).’’. 
(2) Section 63(d) is amended by adding ‘‘and’’ 
at the end of paragraph (1), by striking paragraphs 
(2) and (3), and by inserting after paragraph (1) the 
following new paragraph: 
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4803 
‘‘(2) any deduction referred to in any paragraph 
of subsection (b).’’. 
(c) REPEAL OF SUPERSEDED PROVISIONS.— 
(1) IN GENERAL.—Section 62(a) is amended by 
striking paragraph (22). 
(2) CONFORMING
AMENDMENT.—Section 62 is 
amended by striking subsection (f). 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2020. 
SEC. 213. MODIFICATION OF LIMITATIONS ON CHARITABLE 
CONTRIBUTIONS. 
(a) IN GENERAL.—Subsections (a)(3)(A)(i) and (b) of 
section 2205 of the CARES Act are each amended by insert-
ing ‘‘or 2021’’ after ‘‘2020’’. 
(b) CONFORMING AMENDMENT.—The heading of sec-
tion 2205 of the CARES Act is amended by striking 
‘‘MODIFICATION OF LIMITATIONS ON CHARITABLE 
CONTRIBUTIONS DURING 2020’’ and inserting ‘‘TEM-
PORARY MODIFICATION OF LIMITATIONS ON CHARI-
TABLE CONTRIBUTIONS’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to contributions made after December 
31, 2020. 
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4804 
SEC. 214. TEMPORARY SPECIAL RULES FOR HEALTH AND 
DEPENDENT CARE FLEXIBLE SPENDING AR-
RANGEMENTS. 
(a) CARRYOVER FROM 2020 PLAN YEAR.—For plan 
years ending in 2020, a plan that includes a health flexible 
spending arrangement or dependent care flexible spending 
arrangement shall not fail to be treated as a cafeteria plan 
under the Internal Revenue Code of 1986 merely because 
such plan or arrangement permits participants to carry 
over (under rules similar to the rules applicable to health 
flexible spending arrangements) any unused benefits or con-
tributions remaining in any such flexible spending arrange-
ment from such plan year to the plan year ending in 2021. 
(b) CARRYOVER FROM 2021 PLAN YEAR.—For plan 
years ending in 2021, a plan that includes a health flexible 
spending arrangement or dependent care flexible spending 
arrangement shall not fail to be treated as a cafeteria plan 
under the Internal Revenue Code of 1986 merely because 
such plan or arrangement permits participants to carry 
over (under rules similar to the rules applicable to health 
flexible spending arrangements) any unused benefits or con-
tributions remaining in any such flexible spending arrange-
ment from such plan year to the plan year ending in 2022. 
(c) EXTENSION OF GRACE PERIODS, ETC.— 
(1) IN GENERAL.—A plan that includes a health 
flexible spending arrangement or dependent care flexi-
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4805 
ble spending arrangement shall not fail to be treated 
as a cafeteria plan under the Internal Revenue Code 
of 1986 merely because such plan or arrangement ex-
tends the grace period for a plan year ending in 2020 
or 2021 to 12 months after the end of such plan year, 
with respect to unused benefits or contributions re-
maining in a health flexible spending arrangement or 
a dependent care flexible spending arrangement. 
(2) POST-TERMINATION REIMBURSEMENTS FROM 
HEALTH FSAs.—A plan that includes a health flexi-
ble spending arrangement shall not fail to be treated 
as a cafeteria plan under the Internal Revenue Code 
of 1986 merely because such plan or arrangement al-
lows (under rules similar to the rules applicable to 
dependent care flexible spending arrangements) an 
employee who ceases participation in the plan during 
calendar year 2020 or 2021 to continue to receive re-
imbursements from unused benefits or contributions 
through the end of the plan year in which such par-
ticipation ceased (including any grace period, taking 
into account any modification of a grace period per-
mitted under paragraph (1)). 
(d) SPECIAL CARRY FORWARD RULE FOR DEPENDENT 
CARE FLEXIBLE SPENDING ARRANGEMENTS WHERE DE-
PENDENT AGED OUT DURING PANDEMIC.— 
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4806 
(1) IN GENERAL.—In the case of any eligible em-
ployee, section 21(b)(1)(A) of the Internal Revenue 
Code of 1986 shall be applied by substituting ‘‘age 
14’’ for ‘‘age 13’’ for purposes of determining the de-
pendent care assistance which may be paid or reim-
bursed with respect to such employee under the de-
pendent care flexible spending arrangement referred 
to in paragraph (3)(A) with respect to such employee 
during— 
(A) the plan year described in paragraph 
(3)(A), and 
(B) in the case of an employee described in 
paragraph (3)(B)(ii), the subsequent plan year. 
(2) APPLICATION TO SUBSEQUENT PLAN YEAR 
LIMITED
TO
UNUSED
BALANCE
FROM
PRECEDING 
PLAN YEAR.—Paragraph (1)(B) shall only apply to so 
much of the amounts paid for dependent care assist-
ance with respect to the dependents referred to in 
paragraph (3)(B) as does not exceed the unused bal-
ance described in paragraph (3)(B)(ii). 
(3) ELIGIBLE EMPLOYEE.—For purposes of this 
section, the term ‘‘eligible employee’’ means any em-
ployee who— 
(A) is enrolled in a dependent care flexible 
spending arrangement for the last plan year 
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4807 
with respect to which the end of the regular en-
rollment period for such plan year was on or be-
fore January 31, 2020, and 
(B) has one or more dependents (as defined 
in section 152(a)(1) of the Internal Revenue 
Code of 1986) who attain the age of 13— 
(i) during such plan year, or 
(ii) in the case of an employee who 
(after the application of this section) has an 
unused balance in the employee’s account 
under such arrangement for such plan year 
(determined as of the close of the last day 
on which, under the terms of the plan, 
claims for reimbursement may be made 
with respect to such plan year), the subse-
quent plan year. 
(e) CHANGE IN ELECTION AMOUNT.—For plan years 
ending in 2021, a plan that includes a health flexible spend-
ing arrangement or dependent care flexible spending ar-
rangement shall not fail to be treated as a cafeteria plan 
under the Internal Revenue Code of 1986 merely because 
such plan or arrangement allows an employee to make an 
election to modify prospectively the amount (but not in ex-
cess of any applicable dollar limitation) of such employee’s 
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4808 
contributions to any such flexible spending arrangement 
(without regard to any change in status). 
(f) DEFINITIONS.—Any term used in this section 
which is also used in section 106, 125, or 129 of the Internal 
Revenue Code of 1986, or the regulations or guidance there-
under, shall have the same meaning as when used in such 
section, regulations, or guidance. 
(g) PLAN AMENDMENTS.—A plan that includes a 
health flexible spending arrangement or dependent care 
flexible spending arrangement shall not fail to be treated 
as a cafeteria plan under the Internal Revenue Code of 1986 
merely because such plan or arrangement is amended pur-
suant to a provision under this section and such amend-
ment is retroactive, if— 
(1) such amendment is adopted not later than 
the last day of the first calendar year beginning after 
the end of the plan year in which the amendment is 
effective, and 
(2) the plan or arrangement is operated con-
sistent with the terms of such amendment during the 
period beginning on the effective date of the amend-
ment and ending on the date the amendment is 
adopted. 
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4809 
TITLE III—DISASTER TAX RELIEF 
SEC. 301. DEFINITIONS. 
For purposes of this title— 
(1) QUALIFIED DISASTER AREA.— 
(A) IN GENERAL.—The term ‘‘qualified dis-
aster area’’ means any area with respect to 
which a major disaster was declared, during the 
period beginning on January 1, 2020, and end-
ing on the date which is 60 days after the date 
of the enactment of this Act, by the President 
under section 401 of the Robert T. Stafford Dis-
aster Relief and Emergency Assistance Act if the 
incident period of the disaster with respect to 
which such declaration is made begins on or 
after December 28, 2019, and on or before the 
date of the enactment of this Act. 
(B) COVID–19 
EXCEPTION.—Such term 
shall not include any area with respect to which 
such a major disaster has been so declared only 
by reason of COVID–19. 
(2) QUALIFIED
DISASTER
ZONE.—The term 
‘‘qualified disaster zone’’ means that portion of any 
qualified disaster area which was determined by the 
President, during the period beginning on January 1, 
2020, and ending on the date which is 60 days after 
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4810 
the date of the enactment of this Act, to warrant indi-
vidual or individual and public assistance from the 
Federal Government under the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act by rea-
son of the qualified disaster with respect to such dis-
aster area. 
(3) QUALIFIED DISASTER.—The term ‘‘qualified 
disaster’’ means, with respect to any qualified dis-
aster area, the disaster by reason of which a major 
disaster was declared with respect to such area. 
(4) INCIDENT PERIOD.—The term ‘‘incident pe-
riod’’ means, with respect to any qualified disaster, 
the period specified by the Federal Emergency Man-
agement Agency as the period during which such dis-
aster occurred (except that for purposes of this title 
such period shall not be treated as ending after the 
date which is 30 days after the date of the enactment 
of this Act). 
SEC. 302. SPECIAL DISASTER-RELATED RULES FOR USE OF 
RETIREMENT FUNDS. 
(a) TAX-FAVORED WITHDRAWALS FROM RETIREMENT 
PLANS.— 
(1) IN GENERAL.—Section 72(t) of the Internal 
Revenue Code of 1986 shall not apply to any quali-
fied disaster distribution. 
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4811 
(2) AGGREGATE DOLLAR LIMITATION.— 
(A) IN GENERAL.—For purposes of this sub-
section, the aggregate amount of distributions re-
ceived by an individual which may be treated as 
qualified disaster distributions for any taxable 
year shall not exceed the excess (if any) of— 
(i) $100,000, over 
(ii) the aggregate amounts treated as 
qualified disaster distributions received by 
such individual for all prior taxable years. 
(B) 
TREATMENT
OF
PLAN
DISTRIBU-
TIONS.—If a distribution to an individual would 
(without regard to subparagraph (A)) be a quali-
fied disaster distribution, a plan shall not be 
treated as violating any requirement of the In-
ternal Revenue Code of 1986 merely because the 
plan treats such distribution as a qualified dis-
aster distribution, unless the aggregate amount 
of such distributions from all plans maintained 
by the employer (and any member of any con-
trolled group which includes the employer) to 
such individual exceeds $100,000. 
(C) CONTROLLED GROUP.—For purposes of 
subparagraph (B), the term ‘‘controlled group’’ 
means any group treated as a single employer 
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4812 
under subsection (b), (c), (m), or (o) of section 
414 of the Internal Revenue Code of 1986. 
(D) SPECIAL RULE FOR INDIVIDUALS AF-
FECTED
BY
MORE
THAN
ONE
DISASTER.—The 
limitation of subparagraph (A) shall be applied 
separately with respect to distributions made 
with respect to each qualified disaster. 
(3) AMOUNT DISTRIBUTED MAY BE REPAID.— 
(A) IN GENERAL.—Any individual who re-
ceives a qualified disaster distribution may, at 
any time during the 3-year period beginning on 
the day after the date on which such distribution 
was received, make 1 or more contributions in 
an aggregate amount not to exceed the amount 
of such distribution to an eligible retirement 
plan of which such individual is a beneficiary 
and to which a rollover contribution of such dis-
tribution could be made under section 402(c), 
403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16), of 
the Internal Revenue Code of 1986, as the case 
may be. 
(B) TREATMENT OF REPAYMENTS OF DIS-
TRIBUTIONS FROM ELIGIBLE RETIREMENT PLANS 
OTHER THAN IRAS.—For purposes of the Inter-
nal Revenue Code of 1986, if a contribution is 
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4813 
made pursuant to subparagraph (A) with respect 
to a qualified disaster distribution from an eligi-
ble retirement plan other than an individual re-
tirement plan, then the taxpayer shall, to the ex-
tent of the amount of the contribution, be treated 
as having received the qualified disaster distribu-
tion in an eligible rollover distribution (as de-
fined in section 402(c)(4) of such Code) and as 
having transferred the amount to the eligible re-
tirement plan in a direct trustee to trustee trans-
fer within 60 days of the distribution. 
(C) TREATMENT OF REPAYMENTS OF DIS-
TRIBUTIONS FROM IRAS.—For purposes of the 
Internal Revenue Code of 1986, if a contribution 
is made pursuant to subparagraph (A) with re-
spect to a qualified disaster distribution from an 
individual retirement plan (as defined by section 
7701(a)(37) of such Code), then, to the extent of 
the amount of the contribution, the qualified dis-
aster distribution shall be treated as a distribu-
tion described in section 408(d)(3) of such Code 
and as having been transferred to the eligible re-
tirement plan in a direct trustee to trustee trans-
fer within 60 days of the distribution. 
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4814 
(4) DEFINITIONS.—For purposes of this sub-
section— 
(A) QUALIFIED DISASTER DISTRIBUTION.— 
Except as provided in paragraph (2), the term 
‘‘qualified disaster distribution’’ means any dis-
tribution from an eligible retirement plan 
made— 
(i) on or after the first day of the inci-
dent period of a qualified disaster and be-
fore the date which is 180 days after the 
date of the enactment of this Act, and 
(ii) to an individual whose principal 
place of abode at any time during the inci-
dent period of such qualified disaster is lo-
cated in the qualified disaster area with re-
spect to such qualified disaster and who has 
sustained an economic loss by reason of 
such qualified disaster. 
(B) ELIGIBLE
RETIREMENT
PLAN.—The 
term ‘‘eligible retirement plan’’ shall have the 
meaning given such term by section 402(c)(8)(B) 
of the Internal Revenue Code of 1986. 
(5) INCOME INCLUSION SPREAD OVER 3-YEAR PE-
RIOD.— 
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4815 
(A) IN GENERAL.—In the case of any quali-
fied disaster distribution, unless the taxpayer 
elects not to have this paragraph apply for any 
taxable year, any amount required to be in-
cluded in gross income for such taxable year 
shall be so included ratably over the 3-taxable- 
year period beginning with such taxable year. 
(B) SPECIAL RULE.—For purposes of sub-
paragraph (A), rules similar to the rules of sub-
paragraph (E) of section 408A(d)(3) of the Inter-
nal Revenue Code of 1986 shall apply. 
(6) SPECIAL RULES.— 
(A) EXEMPTION OF DISTRIBUTIONS FROM 
TRUSTEE
TO
TRUSTEE
TRANSFER
AND
WITH-
HOLDING
RULES.—For purposes of sections 
401(a)(31), 402(f), and 3405 of the Internal Rev-
enue Code of 1986, qualified disaster distribu-
tions shall not be treated as eligible rollover dis-
tributions. 
(B) QUALIFIED
DISASTER
DISTRIBUTIONS 
TREATED AS MEETING PLAN DISTRIBUTION RE-
QUIREMENTS.—For purposes of the Internal Rev-
enue Code of 1986, a qualified disaster distribu-
tion shall be treated as meeting the requirements 
of 
sections 
401(k)(2)(B)(i), 
403(b)(7)(A)(i), 
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403(b)(11), and 457(d)(1)(A) of such Code and 
section 8433(h)(1) of title 5, United States Code, 
and, in the case of a money purchase pension 
plan, a qualified disaster distribution which is 
an in-service withdrawal shall be treated as 
meeting the distribution rules of section 401(a) 
of such Code. 
(b) RECONTRIBUTIONS OF WITHDRAWALS FOR HOME 
PURCHASES.— 
(1) RECONTRIBUTIONS.— 
(A) IN GENERAL.—Any individual who re-
ceived a qualified distribution may, during the 
applicable period, make 1 or more contributions 
in an aggregate amount not to exceed the 
amount of such qualified distribution to an eligi-
ble retirement plan (as defined in section 
402(c)(8)(B) of the Internal Revenue Code of 
1986) of which such individual is a beneficiary 
and to which a rollover contribution of such dis-
tribution could be made under section 402(c), 
403(a)(4), 403(b)(8), or 408(d)(3), of such Code, 
as the case may be. 
(B) TREATMENT
OF
REPAYMENTS.—Rules 
similar to the rules of subparagraphs (B) and 
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4817 
(C) of subsection (a)(3) shall apply for purposes 
of this subsection. 
(2) QUALIFIED DISTRIBUTION.—For purposes of 
this subsection, the term ‘‘qualified distribution’’ 
means any distribution— 
(A) described in section 401(k)(2)(B)(i)(IV), 
403(b)(7)(A)(i)(V), 403(b)(11)(B), or 72(t)(2)(F), 
of the Internal Revenue Code of 1986, 
(B) which was to be used to purchase or 
construct a principal residence in a qualified 
disaster area, but which was not so used on ac-
count of the qualified disaster with respect to 
such area, and 
(C) which was received during the period 
beginning on the date which is 180 days before 
the first day of the incident period of such quali-
fied disaster and ending on the date which is 30 
days after the last day of such incident period. 
(3) APPLICABLE PERIOD.—For purposes of this 
subsection, the term ‘‘applicable period’’ means, in the 
case of a principal residence in a qualified disaster 
area with respect to any qualified disaster, the period 
beginning on the first day of the incident period of 
such qualified disaster and ending on the date which 
is 180 days after the date of the enactment of this Act. 
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4818 
(c) LOANS FROM QUALIFIED PLANS.— 
(1) INCREASE IN LIMIT ON LOANS NOT TREATED 
AS DISTRIBUTIONS.—In the case of any loan from a 
qualified employer plan (as defined under section 
72(p)(4) of the Internal Revenue Code of 1986) to a 
qualified individual made during the 180-day period 
beginning on the date of the enactment of this Act— 
(A) clause (i) of section 72(p)(2)(A) of such 
Code shall be applied by substituting ‘‘ 
$100,000’’ for ‘‘ $50,000’’, and 
(B) clause (ii) of such section shall be ap-
plied by substituting ‘‘the present value of the 
nonforfeitable accrued benefit of the employee 
under the plan’’ for ‘‘one-half of the present 
value of the nonforfeitable accrued benefit of the 
employee under the plan’’. 
(2) DELAY OF REPAYMENT.—In the case of a 
qualified individual (with respect to any qualified 
disaster) with an outstanding loan (on or after the 
first day of the incident period of such qualified dis-
aster) from a qualified employer plan (as defined in 
section 72(p)(4) of the Internal Revenue Code of 
1986)— 
(A) if the due date pursuant to subpara-
graph (B) or (C) of section 72(p)(2) of such Code 
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4819 
for any repayment with respect to such loan oc-
curs during the period beginning on the first day 
of the incident period of such qualified disaster 
and ending on the date which is 180 days after 
the last day of such incident period, such due 
date shall be delayed for 1 year (or, if later, 
until the date which is 180 days after the date 
of the enactment of this Act), 
(B) any subsequent repayments with respect 
to any such loan shall be appropriately adjusted 
to reflect the delay in the due date under sub-
paragraph (A) and any interest accruing during 
such delay, and 
(C) in determining the 5-year period and 
the term of a loan under subparagraph (B) or 
(C) of section 72(p)(2) of such Code, the period 
described in subparagraph (A) of this paragraph 
shall be disregarded. 
(3) QUALIFIED
INDIVIDUAL.—For purposes of 
this subsection, the term ‘‘qualified individual’’ means 
any individual— 
(A) whose principal place of abode at any 
time during the incident period of any qualified 
disaster is located in the qualified disaster area 
with respect to such qualified disaster, and 
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22:37 Dec 23, 2020
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