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gregate amount of such aviation-grade kerosene 
held by such person on such date does not exceed 
2,000 gallons. The preceding sentence shall apply 
only if such person submits to the Secretary (at 
the time and in the manner required by the Sec-
retary) such information as the Secretary shall 
require for purposes of this subparagraph. 
(B) EXEMPT AVIATION-GRADE KEROSENE.— 
For purposes of subparagraph (A), there shall 
not be taken into account any aviation-grade 
kerosene held by any person which is exempt 
from the tax imposed by paragraph (1) by rea-
son of paragraph (5). 
(C) CONTROLLED GROUPS.—For purposes of 
this subsection— 
(i) CORPORATIONS.— 
(I) IN
GENERAL.—All persons 
treated as a controlled group shall be 
treated as 1 person. 
(II) CONTROLLED
GROUP.—The 
term ‘‘controlled group’’ has the mean-
ing given to such term by subsection 
(a) of section 1563 of the Internal Rev-
enue Code of 1986; except that for such 
purposes the phrase ‘‘more than 50
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percent’’ shall be substituted for the 
phrase ‘‘at least 80 percent’’ each place 
it appears in such subsection. 
(ii) 
NONINCORPORATED
PERSONS 
UNDER COMMON CONTROL.—Under regula-
tions prescribed by the Secretary, principles 
similar to the principles of subparagraph 
(A) shall apply to a group of persons under 
common control if 1 or more of such persons 
is not a corporation. 
(7) OTHER LAWS APPLICABLE.—All provisions of 
law, including penalties, applicable with respect to 
the taxes imposed by section 4081 of the Internal Rev-
enue Code of 1986 on the aviation-grade kerosene in-
volved shall, insofar as applicable and not incon-
sistent with the provisions of this subsection, apply 
with respect to the floor stock taxes imposed by para-
graph (1) to the same extent as if such taxes were im-
posed by such section. 
SEC. 804. AIR TRAFFIC CONTROL SYSTEM MODERNIZATION 
ACCOUNT. 
(a) IN GENERAL.—Section 9502 is amended by adding 
at the end the following new subsection: 
‘‘(f) ESTABLISHMENT OF AIR TRAFFIC CONTROL SYS-
TEM MODERNIZATION ACCOUNT.—
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‘‘(1) CREATION
OF
ACCOUNT.—There is estab-
lished in the Airport and Airway Trust Fund a sepa-
rate account to be known as the ‘Air Traffic Control 
System Modernization Account’ consisting of such 
amounts as may be transferred or credited to the Air 
Traffic Control System Modernization Account as 
provided in this subsection or section 9602(b). 
‘‘(2) TRANSFERS TO AIR TRAFFIC CONTROL SYS-
TEM MODERNIZATION ACCOUNT.—On October 1, 2011, 
and annually thereafter the Secretary shall transfer 
$400,000,000 to the Air Traffic Control System Mod-
ernization Account from amounts appropriated to the 
Airport and Airway Trust Fund under subsection (b) 
which are attributable to taxes on aviation-grade ker-
osene. 
‘‘(3) EXPENDITURES FROM ACCOUNT.—Amounts 
in the Air Traffic Control System Modernization Ac-
count shall be available subject to appropriation for 
expenditures relating to the modernization of the air 
traffic control system (including facility and equip-
ment account expenditures).’’. 
(b) CONFORMING AMENDMENT.—Paragraph (1) of sec-
tion 9502(d) is amended by striking ‘‘Amounts’’ and insert-
ing ‘‘Except as provided in subsection (f), amounts’’.
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(c) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on the date of the enactment of this 
Act. 
SEC. 805. TREATMENT OF FRACTIONAL AIRCRAFT OWNER-
SHIP PROGRAMS. 
(a) FUEL SURTAX.— 
(1) IN GENERAL.—Subchapter B of chapter 31 is 
amended by adding at the end the following new sec-
tion: 
‘‘SEC. 4043. SURTAX ON FUEL USED IN AIRCRAFT PART OF 
A FRACTIONAL OWNERSHIP PROGRAM. 
‘‘(a) IN GENERAL.—There is hereby imposed a tax on 
any liquid used during any calendar quarter by any person 
as a fuel in an aircraft which is— 
‘‘(1) registered in the United States, and 
‘‘(2) part of a fractional ownership aircraft pro-
gram. 
‘‘(b) AMOUNT OF TAX.—The rate of tax imposed by 
subsection (a) is 14.1 cents per gallon. 
‘‘(c) FRACTIONAL OWNERSHIP AIRCRAFT PROGRAM.— 
For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘fractional owner-
ship aircraft program’ means a program under 
which—
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‘‘(A) a single fractional ownership program 
manager provides fractional ownership program 
management services on behalf of the fractional 
owners, 
‘‘(B) 2 or more airworthy aircraft are part 
of the program, 
‘‘(C) there are 1 or more fractional owners 
per program aircraft, with at least 1 program 
aircraft having more than 1 owner, 
‘‘(D) each fractional owner possesses at least 
a minimum fractional ownership interest in 1 or 
more program aircraft, 
‘‘(E) there exists a dry-lease aircraft ex-
change arrangement among all of the fractional 
owners, and 
‘‘(F) there are multi-year program agree-
ments covering the fractional ownership, frac-
tional ownership program management services, 
and dry-lease aircraft exchange aspects of the 
program. 
‘‘(2) MINIMUM FRACTIONAL OWNERSHIP INTER-
EST.— 
‘‘(A) IN
GENERAL.—The term ‘minimum 
fractional ownership interest’ means, with re-
spect to each type of aircraft—
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‘‘(i) a fractional ownership interest 
equal to or greater than 1⁄16 of at least 1 
subsonic, fixed wing or powered lift pro-
gram aircraft, or 
‘‘(ii) a fractional ownership interest 
equal to or greater than 1⁄32 of a least 1 
rotorcraft program aircraft. 
‘‘(B) FRACTIONAL OWNERSHIP INTEREST.— 
The term ‘fractional ownership interest’ means— 
‘‘(i) the ownership of an interest in a 
program aircraft, 
‘‘(ii) the holding of a multi-year lease-
hold interest in a program aircraft, or 
‘‘(iii) the holding of a multi-year lease-
hold interest which is convertible into an 
ownership interest in a program aircraft. 
‘‘(3) DRY-LEASE
AIRCRAFT
EXCHANGE.—The 
term ‘dry-lease aircraft exchange’ means an agree-
ment, documented by the written program agree-
ments, under which the program aircraft are avail-
able, on an as needed basis without crew, to each frac-
tional owner. 
‘‘(d) TERMINATION.—This section shall not apply to 
liquids used as a fuel in an aircraft after September 30, 
2013.’’.
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(2) CONFORMING
AMENDMENT.—Subsection (e) 
of section 4082 is amended by inserting ‘‘(other than 
an aircraft described in section 4043(a))’’ after ‘‘an 
aircraft’’. 
(3) TRANSFER OF REVENUES TO AIRPORT AND 
AIRWAY
TRUST
FUND.—Subsection (1) of section 
9502(b) is amended by redesignating subparagraphs 
(B) and (C) as subparagraphs (C) and (D), respec-
tively, and by inserting after subparagraph (A) the 
following new subparagraph: 
‘‘(B) section 4043 (relating to surtax on fuel 
used in aircraft part of a fractional ownership 
program),’’. 
(4) CLERICAL AMENDMENT.—The table of sec-
tions for subchapter B of chapter 31 is amended by 
adding at the end the following new item: 
‘‘Sec. 4043. Surtax on fuel used in aircraft part of a fractional ownership pro-
gram.’’. 
(b) FRACTIONAL OWNERSHIP PROGRAMS TREATED AS 
NON-COMMERCIAL AVIATION.—Subsection (b) of section 
4083 is amended by adding at the end the following new 
sentence: ‘‘For uses of aircraft before October 1, 2013, such 
term shall not include the use of any aircraft which is part 
of a fractional ownership aircraft program (as defined by 
section 4043(c)).’’.
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(c) EXEMPTION FROM TAX ON TRANSPORTATION OF 
PERSONS.—Section 4261, as amended by this Act, is 
amended by redesignating subsection (j) as subsection (k) 
and by inserting after subsection (i) the following new sub-
section: 
‘‘(j) EXEMPTION FOR AIRCRAFT IN FRACTIONAL OWN-
ERSHIP AIRCRAFT PROGRAMS.—No tax shall be imposed by 
this section or section 4271 on any air transportation pro-
vided before October 1, 2013, by an aircraft which is part 
of a fractional ownership aircraft program (as defined by 
section 4043(c)).’’. 
(d) EFFECTIVE DATES.— 
(1) SUBSECTION (a).—The amendments made by 
subsection (a) shall apply to fuel used after March 31, 
2011. 
(2) SUBSECTION (b).—The amendment made by 
subsection (b) shall apply to uses of aircraft after 
March 31, 2011. 
(3) SUBSECTION (c).—The amendments made by 
subsection (c) shall apply to taxable transportation 
provided after March 31, 2011.
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SEC. 806. TERMINATION OF EXEMPTION FOR SMALL JET 
AIRCRAFT ON NONESTABLISHED LINES. 
(a) IN GENERAL.—the first sentence of section 4281 
is amended by inserting ‘‘or when such aircraft is a turbine 
engine powered aircraft’’ after ‘‘an established line’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable transportation provided after 
March 31, 2011. 
SEC. 807. TRANSPARENCY IN PASSENGER TAX DISCLO-
SURES. 
(a) IN GENERAL.—Section 7275 (relating to penalty 
for offenses relating to certain airline tickets and adver-
tising) is amended— 
(1) by redesignating subsection (c) as subsection 
(d), 
(2) by striking ‘‘subsection (a) or (b)’’ in sub-
section (d), as so redesignated, and inserting ‘‘sub-
section (a), (b), or (c)’’, and 
(3) by inserting after subsection (b) the following 
new subsection: 
‘‘(c) NON-TAX CHARGES.— 
‘‘(1) IN GENERAL.—In the case of transportation 
by air for which disclosure on the ticket or adver-
tising for such transportation of the amounts paid for 
passenger taxes is required by subsection (a)(2) or 
(b)(1)(B), if such amounts are separately disclosed, it
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shall be unlawful for the disclosure of such amounts 
to include any amounts not attributable to such taxes. 
‘‘(2) INCLUSION
IN
TRANSPORTATION
COST.— 
Nothing in this subsection shall prohibit the inclusion 
of amounts not attributable to the taxes imposed by 
subsection (a), (b), or (c) of section 4261 in the disclo-
sure of the amount paid for transportation as re-
quired by subsection (a)(1) or (b)(1)(A), or in a sepa-
rate disclosure of amounts not attributable to such 
taxes.’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable transportation provided after 
March 31, 2011. 
SEC. 808. TAX-EXEMPT BOND FINANCING FOR FIXED-WING 
EMERGENCY MEDICAL AIRCRAFT. 
(a) IN GENERAL.—Subsection (e) of section 147 is 
amended by adding at the end the following new sentence: 
‘‘The preceding sentence shall not apply to any fixed-wing 
aircraft equipped for, and exclusively dedicated to pro-
viding, acute care emergency medical services (within the 
meaning of 4261(g)(2)).’’ 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to obligations issued after the date of 
the enactment of this Act.
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SEC. 809. PROTECTION OF AIRPORT AND AIRWAY TRUST 
FUND SOLVENCY. 
(a) IN GENERAL.—Paragraph (1) of section 9502(d) 
is amended by adding at the end the following new sentence: 
‘‘Unless otherwise provided by this section, for purposes of 
this paragraph for fiscal year 2012 or 2013, the amount 
available for making expenditures for such fiscal year shall 
not exceed 90 percent of the receipts of the Airport and Air-
way Trust Fund plus interest credited to such Trust Fund 
for such fiscal year as estimated by the Secretary of the 
Treasury.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to fiscal years beginning after September 
30, 2011. 
SEC. 810. ROLLOVER OF AMOUNTS RECEIVED IN AIRLINE 
CARRIER BANKRUPTCY. 
(a) GENERAL RULES.— 
(1) ROLLOVER OF AIRLINE PAYMENT AMOUNT.— 
If a qualified airline employee receives any airline 
payment amount and transfers any portion of such 
amount to a traditional IRA within 180 days of re-
ceipt of such amount (or, if later, within 180 days of 
the date of the enactment of this Act), then such 
amount (to the extent so transferred) shall be treated 
as a rollover contribution described in section 402(c) 
of the Internal Revenue Code of 1986. A qualified air-
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line employee making such a transfer may exclude 
from gross income the amount transferred, in the tax-
able year in which the airline payment amount was 
paid to the qualified airline employee by the commer-
cial passenger airline carrier. 
(2) TRANSFER OF AMOUNTS ATTRIBUTABLE TO 
AIRLINE PAYMENT AMOUNT FOLLOWING ROLLOVER TO 
ROTH
IRA.—A qualified airline employee who has 
contributed an airline payment amount to a Roth 
IRA that is treated as a qualified rollover contribu-
tion pursuant to section 125 of the Worker, Retiree, 
and Employer Recovery Act of 2008, may transfer to 
a traditional IRA, in a trustee-to-trustee transfer, all 
or any part of the contribution (together with any net 
income allocable to such contribution), and the trans-
fer to the traditional IRA will be deemed to have been 
made at the time of the rollover to the Roth IRA, if 
such transfer is made within 180 days of the date of 
the enactment of this Act. A qualified airline em-
ployee making such a transfer may exclude from gross 
income the airline payment amount previously rolled 
over to the Roth IRA, to the extent an amount attrib-
utable to the previous rollover was transferred to a 
traditional IRA, in the taxable year in which the air-
line payment amount was paid to the qualified air-
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line employee by the commercial passenger airline 
carrier. No amount so transferred to a traditional 
IRA may be treated as a qualified rollover contribu-
tion with respect to a Roth IRA within the 5-taxable 
year period beginning with the taxable year in which 
such transfer was made. 
(3) EXTENSION OF TIME TO FILE CLAIM FOR RE-
FUND.—A qualified airline employee who excludes an 
amount from gross income in a prior taxable year 
under paragraph (1) or (2) may reflect such exclusion 
in a claim for refund filed within the period of limi-
tation under section 6511(a) (or, if later, April 15, 
2012). 
(b) TREATMENT OF AIRLINE PAYMENT AMOUNTS AND 
TRANSFERS FOR EMPLOYMENT TAXES.—For purposes of 
chapter 21 of the Internal Revenue Code of 1986 and section 
209 of the Social Security Act, an airline payment amount 
shall not fail to be treated as a payment of wages by the 
commercial passenger airline carrier to the qualified airline 
employee in the taxable year of payment because such 
amount is excluded from the qualified airline employee’s 
gross income under subsection (a). 
(c) DEFINITIONS AND SPECIAL RULES.—For purposes 
of this section— 
(1) AIRLINE PAYMENT AMOUNT.—
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(A) IN GENERAL.—The term ‘‘airline pay-
ment amount’’ means any payment of any 
money or other property which is payable by a 
commercial passenger airline carrier to a quali-
fied airline employee— 
(i) under the approval of an order of 
a Federal bankruptcy court in a case filed 
after September 11, 2001, and before Janu-
ary 1, 2007, and 
(ii) in respect of the qualified airline 
employee’s interest in a bankruptcy claim 
against the carrier, any note of the carrier 
(or amount paid in lieu of a note being 
issued), or any other fixed obligation of the 
carrier to pay a lump sum amount. 
The amount of such payment shall be determined 
without regard to any requirement to deduct and 
withhold tax from such payment under sections 
3102(a) and 3402(a). 
(B) 
EXCEPTION.—An 
airline 
payment 
amount shall not include any amount payable 
on the basis of the carrier’s future earnings or 
profits. 
(2) QUALIFIED AIRLINE EMPLOYEE.—The term 
‘‘qualified airline employee’’ means an employee or
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former employee of a commercial passenger airline 
carrier who was a participant in a defined benefit 
plan maintained by the carrier which— 
(A) is a plan described in section 401(a) of 
the Internal Revenue Code of 1986 which in-
cludes a trust exempt from tax under section 
501(a) of such Code, and 
(B) was terminated or became subject to the 
restrictions contained in paragraphs (2) and (3) 
of section 402(b) of the Pension Protection Act of 
2006. 
(3) TRADITIONAL
IRA.—The term ‘‘traditional 
IRA’’ means an individual retirement plan (as de-
fined in section 7701(a)(37) of the Internal Revenue 
Code of 1986) which is not a Roth IRA. 
(4) ROTH IRA.—The term ‘‘Roth IRA’’ has the 
meaning given such term by section 408A(b) of such 
Code. 
(d) SURVIVING SPOUSE.—If a qualified airline em-
ployee died after receiving an airline payment amount, or 
if an airline payment amount was paid to the surviving 
spouse of a qualified airline employee in respect of the 
qualified airline employee, the surviving spouse of the 
qualified airline employee may take all actions permitted 
under section 125 of the Worker, Retiree and Employer Re-
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covery Act of 2008, or under this section, to the same extent 
that the qualified airline employee could have done had the 
qualified airline employee survived. 
(e) EFFECTIVE DATE.—This section shall apply to 
transfers made after the date of the enactment of this Act 
with respect to airline payment amounts paid before, on, 
or after such date. 
SEC. 811. APPLICATION OF LEVY TO PAYMENTS TO FED-
ERAL VENDORS RELATING TO PROPERTY. 
(a) IN GENERAL.—Section 6331(h)(3) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘goods or 
services’’ and inserting ‘‘property, goods, or services’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to levies issued after the date of the en-
actment of this Act. 
SEC. 812. MODIFICATION OF CONTROL DEFINITION FOR 
PURPOSES OF SECTION 249. 
(a) IN GENERAL.—Section 249(a) of the Internal Rev-
enue Code of 1986 is amended by striking ‘‘, or a corpora-
tion in control of, or controlled by,’’ and inserting ‘‘, or 
a corporation in the same parent-subsidiary controlled 
group (within the meaning of section 1563(a)(1) as’’. 
(b) CONFORMING AMENDMENT.—Section 249(b) of the 
Internal Revenue Code of 1986 is amended—
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(1) by striking ‘‘subsection (a)—’’ and all that 
follows through ‘‘The adjusted issue price’’ and insert-
ing ‘‘subsection (a), the adjusted issue price’’, and 
(2) by striking paragraph (2). 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to repurchases after the date of the enact-
ment of this Act. 
TITLE IX—BUDGETARY EFFECTS 
SEC. 901. BUDGETARY EFFECTS. 
The budgetary effects of this Act, for the purpose of 
complying with the Statutory Pay-As-You-Go-Act of 2010, 
shall be determined by reference to the latest statement titled 
‘‘Budgetary Effects of PAYGO Legislation’’ for this Act, 
submitted for printing in the Congressional Record by the 
Chairman of the Senate Budget Committee, provided that 
such statement has been submitted prior to the vote on pas-
sage. 
TITLE X—RESCISSION OF UN-
USED TRANSPORTATION EAR-
MARKS 
AND 
GENERAL 
RE-
PORTING REQUIREMENT 
SEC. 1001. DEFINITION. 
In this title, the term ‘‘earmark’’ means the following:
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(1) A congressionally directed spending item, as 
defined in Rule XLIV of the Standing Rules of the 
Senate. 
(2) A congressional earmark, as defined for pur-
poses of Rule XXI of the Rules of the House of Rep-
resentatives. 
SEC. 1002. RESCISSION. 
Any earmark of funds provided for the Department of 
Transportation with more than 90 percent of the appro-
priated amount remaining available for obligation at the 
end of the 9th fiscal year following the fiscal year in which 
the earmark was made available is rescinded effective at 
the end of that 9th fiscal year, except that the Secretary 
of Transportation may delay any such rescission if the Sec-
retary determines that an additional obligation of the ear-
mark is likely to occur during the following 12-month pe-
riod. 
SEC. 1003. AGENCY WIDE IDENTIFICATION AND REPORTS. 
(a) AGENCY IDENTIFICATION.—Each Federal agency 
shall identify and report every project that is an earmark 
with an unobligated balance at the end of each fiscal year 
to the Director of OMB. 
(b) ANNUAL REPORT.—The Director of OMB shall sub-
mit to Congress and publically post on the website of OMB 
an annual report that includes—