★
In the House of Representatives, U. S., 
May 28, 2010. 
Resolved, That the House agree to the amendment of the 
Senate to the bill (H.R. 4213) entitled ‘‘An Act to amend the 
Internal Revenue Code of 1986 to extend certain expiring 
provisions, and for other purposes.’’, with the following 
HOUSE AMENDMENT TO SENATE AMENDMENT: 
In lieu of the matter proposed to be inserted by the 
amendment of the Senate, insert the following: 
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; 
TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘American Jobs and Closing Tax Loopholes Act of 2010’’. 
(b) AMENDMENT OF 1986 CODE.—Except as otherwise 
expressly provided, whenever in titles I, II, and IV of this 
Act an amendment 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 for 
this Act is as follows: 
Sec. 1. Short title; amendment of 1986 Code; table of contents. 
TITLE I—INFRASTRUCTURE INCENTIVES 
Sec. 101. Extension of Build America Bonds. 
Sec. 102. Exempt-facility bonds for sewage and water supply facilities.
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Sec. 103. Extension of exemption from alternative minimum tax treatment for 
certain tax-exempt bonds. 
Sec. 104. Extension and additional allocations of recovery zone bond authority. 
Sec. 105. Allowance of new markets tax credit against alternative minimum tax. 
Sec. 106. Extension of tax-exempt eligibility for loans guaranteed by Federal 
home loan banks. 
Sec. 107. Extension of temporary small issuer rules for allocation of tax-exempt 
interest expense by financial institutions. 
TITLE II—EXTENSION OF EXPIRING PROVISIONS 
Subtitle A—Energy 
Sec. 201. Alternative motor vehicle credit for new qualified hybrid motor vehicles 
other than passenger automobiles and light trucks. 
Sec. 202. Incentives for biodiesel and renewable diesel. 
Sec. 203. Credit for electricity produced at certain open-loop biomass facilities. 
Sec. 204. Extension and modification of credit for steel industry fuel. 
Sec. 205. Credit for producing fuel from coke or coke gas. 
Sec. 206. New energy efficient home credit. 
Sec. 207. Excise tax credits and outlay payments for alternative fuel and alter-
native fuel mixtures. 
Sec. 208. Special rule for sales or dispositions to implement FERC or State elec-
tric restructuring policy for qualified electric utilities. 
Sec. 209. Suspension of limitation on percentage depletion for oil and gas from 
marginal wells. 
Sec. 210. Direct payment of energy efficient appliances tax credit. 
Sec. 211. Modification of standards for windows, doors, and skylights with respect 
to the credit for nonbusiness energy property. 
Subtitle B—Individual Tax Relief 
PART I—MISCELLANEOUS PROVISIONS 
Sec. 221. Deduction for certain expenses of elementary and secondary school 
teachers. 
Sec. 222. Additional standard deduction for State and local real property taxes. 
Sec. 223. Deduction of State and local sales taxes. 
Sec. 224. Contributions of capital gain real property made for conservation pur-
poses. 
Sec. 225. Above-the-line deduction for qualified tuition and related expenses. 
Sec. 226. Tax-free distributions from individual retirement plans for charitable 
purposes. 
Sec. 227. Look-thru of certain regulated investment company stock in deter-
mining gross estate of nonresidents. 
PART II—LOW-INCOME HOUSING CREDITS 
Sec. 231. Election for direct payment of low-income housing credit for 2010. 
Subtitle C—Business Tax Relief 
Sec. 241. Research credit. 
Sec. 242. Indian employment tax credit. 
Sec. 243. New markets tax credit. 
Sec. 244. Railroad track maintenance credit. 
Sec. 245. Mine rescue team training credit.
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Sec. 246. Employer wage credit for employees who are active duty members of the 
uniformed services. 
Sec. 247. 5-year depreciation for farming business machinery and equipment. 
Sec. 248. 15-year straight-line cost recovery for qualified leasehold improvements, 
qualified restaurant buildings and improvements, and qualified 
retail improvements. 
Sec. 249. 7-year recovery period for motorsports entertainment complexes. 
Sec. 250. Accelerated depreciation for business property on an Indian reservation. 
Sec. 251. Enhanced charitable deduction for contributions of food inventory. 
Sec. 252. Enhanced charitable deduction for contributions of book inventories to 
public schools. 
Sec. 253. Enhanced charitable deduction for corporate contributions of computer 
inventory for educational purposes. 
Sec. 254. Election to expense mine safety equipment. 
Sec. 255. Special expensing rules for certain film and television productions. 
Sec. 256. Expensing of environmental remediation costs. 
Sec. 257. Deduction allowable with respect to income attributable to domestic pro-
duction activities in Puerto Rico. 
Sec. 258. Modification of tax treatment of certain payments to controlling exempt 
organizations. 
Sec. 259. Exclusion of gain or loss on sale or exchange of certain brownfield sites 
from unrelated business income. 
Sec. 260. Timber REIT modernization. 
Sec. 261. Treatment of certain dividends of regulated investment companies. 
Sec. 262. RIC qualified investment entity treatment under FIRPTA. 
Sec. 263. Exceptions for active financing income. 
Sec. 264. Look-thru treatment of payments between related controlled foreign cor-
porations under foreign personal holding company rules. 
Sec. 265. Basis adjustment to stock of S corps making charitable contributions 
of property. 
Sec. 266. Empowerment zone tax incentives. 
Sec. 267. Tax incentives for investment in the District of Columbia. 
Sec. 268. Renewal community tax incentives. 
Sec. 269. Temporary increase in limit on cover over of rum excise taxes to Puerto 
Rico and the Virgin Islands. 
Sec. 270. Payment to American Samoa in lieu of extension of economic develop-
ment credit. 
Sec. 271. Election to temporarily utilize unused AMT credits determined by do-
mestic investment. 
Sec. 272. Study of extended tax expenditures. 
Subtitle D—Temporary Disaster Relief Provisions 
PART I—NATIONAL DISASTER RELIEF 
Sec. 281. Waiver of certain mortgage revenue bond requirements. 
Sec. 282. Losses attributable to federally declared disasters. 
Sec. 283. Special depreciation allowance for qualified disaster property. 
Sec. 284. Net operating losses attributable to federally declared disasters. 
Sec. 285. Expensing of qualified disaster expenses.
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PART II—REGIONAL PROVISIONS 
SUBPART A—NEW YORK LIBERTY ZONE 
Sec. 291. Special depreciation allowance for nonresidential and residential real 
property. 
Sec. 292. Tax-exempt bond financing. 
SUBPART B—GO ZONE 
Sec. 295. Increase in rehabilitation credit. 
Sec. 296. Work opportunity tax credit with respect to certain individuals affected 
by Hurricane Katrina for employers inside disaster areas. 
Sec. 297. Extension of low-income housing credit rules for buildings in GO zones. 
TITLE III—PENSION PROVISIONS 
Subtitle A—Pension Funding Relief 
PART 1—SINGLE-EMPLOYER PLANS 
Sec. 301. Extended period for single-employer defined benefit plans to amortize 
certain shortfall amortization bases. 
Sec. 302. Application of extended amortization period to plans subject to prior 
law funding rules. 
Sec. 303. Suspension of certain funding level limitations. 
Sec. 304. Lookback for credit balance rule. 
Sec. 305. Information reporting. 
Sec. 306. Rollover of amounts received in airline carrier bankruptcy. 
PART 2—MULTIEMPLOYER PLANS 
Sec. 311. Optional use of 30-year amortization periods. 
Sec. 312. Optional longer recovery periods for multiemployer plans in endangered 
or critical status. 
Sec. 313. Modification of certain amortization extensions under prior law. 
Sec. 314. Alternative default schedule for plans in endangered or critical status. 
Sec. 315. Transition rule for certifications of plan status. 
Subtitle B—Fee Disclosure 
Sec. 321. Short title of subtitle. 
Sec. 322. Amendments to the Employee Retirement Income Security Act of 1974. 
Sec. 323. Amendments to the Internal Revenue Code of 1986. 
Sec. 324. Regulatory authority and coordination. 
Sec. 325. Effective date of subtitle. 
TITLE IV—REVENUE OFFSETS 
Subtitle A—Foreign Provisions 
Sec. 401. Rules to prevent splitting foreign tax credits from the income to which 
they relate. 
Sec. 402. Denial of foreign tax credit with respect to foreign income not subject 
to United States taxation by reason of covered asset acquisitions. 
Sec. 403. Separate application of foreign tax credit limitation, etc., to items 
resourced under treaties.
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Sec. 404. Limitation on the amount of foreign taxes deemed paid with respect to 
section 956 inclusions. 
Sec. 405. Special rule with respect to certain redemptions by foreign subsidiaries. 
Sec. 406. Modification of affiliation rules for purposes of rules allocating interest 
expense. 
Sec. 407. Termination of special rules for interest and dividends received from 
persons meeting the 80-percent foreign business requirements. 
Sec. 408. Source rules for income on guarantees. 
Sec. 409. Limitation on extension of statute of limitations for failure to notify 
Secretary of certain foreign transfers. 
Subtitle B—Personal Service Income Earned in Pass-thru Entities 
Sec. 411. Partnership interests transferred in connection with performance of 
services. 
Sec. 412. Income of partners for performing investment management services 
treated as ordinary income received for performance of services. 
Sec. 413. Employment tax treatment of professional service businesses. 
Subtitle C—Corporate Provisions 
Sec. 421. Treatment of securities of a controlled corporation exchanged for assets 
in certain reorganizations. 
Sec. 422. Taxation of boot received in reorganizations. 
Subtitle D—Other Provisions 
Sec. 431. Modifications with respect to Oil Spill Liability Trust Fund. 
Sec. 432. Time for payment of corporate estimated taxes. 
TITLE V—UNEMPLOYMENT, HEALTH, AND OTHER ASSISTANCE 
Subtitle A—Unemployment Insurance and Other Assistance 
Sec. 501. Extension of unemployment insurance provisions. 
Sec. 502. Coordination of emergency unemployment compensation with regular 
compensation. 
Sec. 503. Extension of the Emergency Contingency Fund. 
Subtitle B—Health Provisions 
Sec. 511. Extension of section 508 reclassifications. 
Sec. 512. Repeal of delay of RUG-IV. 
Sec. 513. Limitation on reasonable costs payments for certain clinical diagnostic 
laboratory tests furnished to hospital patients in certain rural 
areas. 
Sec. 514. Funding for claims reprocessing. 
Sec. 515. Medicaid and CHIP technical corrections. 
Sec. 516. Addition of inpatient drug discount program to 340B drug discount 
program. 
Sec. 517. Continued inclusion of orphan drugs in definition of covered outpatient 
drugs with respect to children’s hospitals under the 340B drug 
discount program. 
Sec. 518. Conforming amendment related to waiver of coinsurance for preventive 
services. 
Sec. 519. Establish a CMS–IRS data match to identify fraudulent providers. 
Sec. 520. Clarification of effective date of part B special enrollment period for 
disabled TRICARE beneficiaries.
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Sec. 521. Physician payment update. 
Sec. 522. Adjustment to Medicare payment localities. 
Sec. 523. Clarification of 3-day payment window. 
TITLE VI—OTHER PROVISIONS 
Sec. 601. Extension of national flood insurance program. 
Sec. 602. Allocation of geothermal receipts. 
Sec. 603. Small business loan guarantee enhancement extensions. 
Sec. 604. Emergency agricultural disaster assistance. 
Sec. 605. Summer employment for youth. 
Sec. 606. Housing Trust Fund. 
Sec. 607. The Individual Indian Money Account Litigation Settlement Act of 
2010. 
Sec. 608. Appropriation of funds for final settlement of claims from In re Black 
Farmers Discrimination Litigation. 
Sec. 609. Expansion of eligibility for concurrent receipt of military retired pay 
and veterans’ disability compensation to include all chapter 61 
disability retirees regardless of disability rating percentage or 
years of service. 
Sec. 610. Extension of use of 2009 poverty guidelines. 
Sec. 611. Refunds disregarded in the administration of Federal programs and 
federally assisted programs. 
Sec. 612. State court improvement program. 
Sec. 613. Qualifying timber contract options. 
Sec. 614. Extension and flexibility for certain allocated surface transportation 
programs. 
Sec. 615. Community College and Career Training Grant Program. 
Sec. 616. Extensions of duty suspensions on cotton shirting fabrics and related 
provisions. 
Sec. 617. Modification of Wool Apparel Manufacturers Trust Fund. 
Sec. 618. Department of Commerce Study. 
Sec. 619. ARRA planning and reporting. 
TITLE VII—BUDGETARY PROVISIONS 
Sec. 701. Budgetary provisions. 
TITLE I—INFRASTRUCTURE 
INCENTIVES 
SEC. 101. EXTENSION OF BUILD AMERICA BONDS. 
(a) IN
GENERAL.—Subparagraph (B) of section 
54AA(d)(1) is amended by striking ‘‘January 1, 2011’’ and 
inserting ‘‘January 1, 2013’’. 
(b) EXTENSION OF PAYMENTS TO ISSUERS.— 
(1) IN GENERAL.—Section 6431 is amended—
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(A) by striking ‘‘January 1, 2011’’ in sub-
section (a) and inserting ‘‘January 1, 2013’’; 
and 
(B) by striking ‘‘January 1, 2011’’ in sub-
section (f)(1)(B) and inserting ‘‘a particular 
date’’. 
(2) CONFORMING AMENDMENTS.—Subsection (g) 
of section 54AA is amended— 
(A) by striking ‘‘January 1, 2011’’ and in-
serting ‘‘January 1, 2013’’; and 
(B) by striking ‘‘QUALIFIED BONDS ISSUED 
BEFORE 2011’’ in the heading and inserting 
‘‘CERTAIN QUALIFIED BONDS’’. 
(c) REDUCTION IN PERCENTAGE OF PAYMENTS TO 
ISSUERS.—Subsection (b) of section 6431 is amended— 
(1) by striking ‘‘The Secretary’’ and inserting 
the following: 
‘‘(1) IN GENERAL.—The Secretary’’; 
(2) by striking ‘‘35 percent’’ and inserting ‘‘the 
applicable percentage’’; and 
(3) by adding at the end the following new para-
graph: 
‘‘(2) APPLICABLE
PERCENTAGE.—For purposes 
of this subsection, the term ‘applicable percentage’
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means the percentage determined in accordance with 
the following table: 
‘‘In the case of a qualified bond issued during cal-
endar year: 
The applicable percentage 
is: 
2009 or 2010 ..................................................................
35 percent 
2011 ................................................................................
32 percent 
2012 ................................................................................
30 percent.’’. 
(d) CURRENT REFUNDINGS PERMITTED.—Subsection 
(g) of section 54AA is amended by adding at the end the 
following new paragraph: 
‘‘(3) TREATMENT
OF
CURRENT
REFUNDING 
BONDS.— 
‘‘(A) IN
GENERAL.—For purposes of this 
subsection, the term ‘qualified bond’ includes any 
bond (or series of bonds) issued to refund a 
qualified bond if— 
‘‘(i) the average maturity date of the 
issue of which the refunding bond is a part 
is not later than the average maturity date 
of the bonds to be refunded by such issue, 
‘‘(ii) the amount of the refunding bond 
does not exceed the outstanding amount of 
the refunded bond, and 
‘‘(iii) the refunded bond is redeemed 
not later than 90 days after the date of the 
issuance of the refunding bond.
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‘‘(B) APPLICABLE
PERCENTAGE.—In the 
case of a refunding bond referred to in subpara-
graph (A), the applicable percentage with respect 
to such bond under section 6431(b) shall be the 
lowest percentage specified in paragraph (2) of 
such section. 
‘‘(C) DETERMINATION OF AVERAGE MATU-
RITY.—For purposes of subparagraph (A)(i), av-
erage maturity shall be determined in accord-
ance with section 147(b)(2)(A).’’. 
(e) CLARIFICATION RELATED TO LEVEES AND FLOOD 
CONTROL
PROJECTS.—Subparagraph 
(A) 
of 
section 
54AA(g)(2) is amended by inserting ‘‘(including capital ex-
penditures for levees and other flood control projects)’’ after 
‘‘capital expenditures’’. 
SEC. 102. EXEMPT-FACILITY BONDS FOR SEWAGE AND 
WATER SUPPLY FACILITIES. 
(a) BONDS FOR WATER AND SEWAGE FACILITIES EX-
EMPT FROM VOLUME CAP ON PRIVATE ACTIVITY BONDS.— 
(1) IN
GENERAL.—Paragraph (3) of section 
146(g) is amended by inserting ‘‘(4), (5),’’ after 
‘‘(2),’’. 
(2) CONFORMING AMENDMENT.—Paragraphs (2) 
and (3)(B) of section 146(k) are both amended by 
striking ‘‘(4), (5), (6),’’ and inserting ‘‘(6)’’.
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(b) TAX-EXEMPT ISSUANCE BY INDIAN TRIBAL GOV-
ERNMENTS.— 
(1) IN GENERAL.—Subsection (c) of section 7871 
is amended by adding at the end the following new 
paragraph: 
‘‘(4) EXCEPTION FOR BONDS FOR WATER AND 
SEWAGE FACILITIES.—Paragraph (2) shall not apply 
to an exempt facility bond 95 percent or more of the 
net proceeds (as defined in section 150(a)(3)) of which 
are to be used to provide facilities described in para-
graph (4) or (5) of section 142(a).’’. 
(2) CONFORMING AMENDMENT.—Paragraph (2) 
of section 7871(c) is amended by striking ‘‘paragraph 
(3)’’ and inserting ‘‘paragraphs (3) and (4)’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to obligations issued after the date of 
the enactment of this Act. 
SEC. 103. EXTENSION OF EXEMPTION FROM ALTERNATIVE 
MINIMUM TAX TREATMENT FOR CERTAIN 
TAX-EXEMPT BONDS. 
(a) IN GENERAL.—Clause (vi) of section 57(a)(5)(C) 
is amended— 
(1) by striking ‘‘January 1, 2011’’ in subclause 
(I) and inserting ‘‘January 1, 2012’’; and
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(2) by striking ‘‘AND 2010’’ in the heading and 
inserting ‘‘, 2010, AND 2011’’. 
(b) ADJUSTED CURRENT EARNINGS.—Clause (iv) of 
section 56(g)(4)(B) is amended— 
(1) by striking ‘‘January 1, 2011’’ in subclause 
(I) and inserting ‘‘January 1, 2012’’; and 
(2) by striking ‘‘AND 2010’’ in the heading and 
inserting ‘‘, 2010, AND 2011’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to obligations issued after December 31, 
2010. 
SEC. 104. EXTENSION AND ADDITIONAL ALLOCATIONS OF 
RECOVERY ZONE BOND AUTHORITY. 
(a) EXTENSION OF RECOVERY ZONE BOND AUTHOR-
ITY.—Section 
1400U–2(b)(1) 
and 
section 
1400U– 
3(b)(1)(B) are each amended by striking ‘‘January 1, 
2011’’ and inserting ‘‘January 1, 2012’’. 
(b) ADDITIONAL ALLOCATIONS OF RECOVERY ZONE 
BOND AUTHORITY BASED ON UNEMPLOYMENT.—Section 
1400U–1 is amended by adding at the end the following 
new subsection: 
‘‘(c) ALLOCATION OF 2010 RECOVERY ZONE BOND 
LIMITATIONS BASED ON UNEMPLOYMENT.— 
‘‘(1) IN GENERAL.—The Secretary shall allocate 
the 2010 national recovery zone economic development
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bond limitation and the 2010 national recovery zone 
facility bond limitation among the States in the pro-
portion that each such State’s 2009 unemployment 
number bears to the aggregate of the 2009 unemploy-
ment numbers for all of the States. 
‘‘(2) MINIMUM
ALLOCATION.—The Secretary 
shall adjust the allocations under paragraph (1) for 
each State to the extent necessary to ensure that no 
State (prior to any reduction under paragraph (3)) 
receives less than 0.9 percent of the 2010 national re-
covery zone economic development bond limitation 
and 0.9 percent of the 2010 national recovery zone fa-
cility bond limitation. 
‘‘(3) ALLOCATIONS BY STATES.— 
‘‘(A) IN GENERAL.—Each State with respect 
to which an allocation is made under paragraph 
(1) shall reallocate such allocation among the 
counties and large municipalities (as defined in 
subsection (a)(3)(B)) in such State in the pro-
portion that each such county’s or municipality’s 
2009 unemployment number bears to the aggre-
gate of the 2009 unemployment numbers for all 
the counties and large municipalities (as so de-
fined) in such State.
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‘‘(B) 
2010 
ALLOCATION
REDUCED
BY 
AMOUNT OF PREVIOUS ALLOCATION.—Each State 
shall reduce (but not below zero)— 
‘‘(i) the amount of the 2010 national 
recovery zone economic development bond 
limitation allocated to each county or large 
municipality (as so defined) in such State 
by the amount of the national recovery zone 
economic development bond limitation allo-
cated to such county or large municipality 
under 
subsection 
(a)(3)(A) 
(determined 
without regard to any waiver thereof), and 
‘‘(ii) the amount of the 2010 national 
recovery zone facility bond limitation allo-
cated to each county or large municipality 
(as so defined) in such State by the amount 
of the national recovery zone facility bond 
limitation allocated to such county or large 
municipality under subsection (a)(3)(A) 
(determined without regard to any waiver 
thereof). 
‘‘(C) 
WAIVER
OF
SUBALLOCATIONS.—A 
county or municipality may waive any portion 
of an allocation made under this paragraph. A 
county or municipality shall be treated as hav-
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ing waived any portion of an allocation made 
under this paragraph which has not been allo-
cated to a bond issued before May 1, 2011. Any 
allocation waived (or treated as waived) under 
this subparagraph may be used or reallocated by 
the State. 
‘‘(D) SPECIAL RULE FOR A MUNICIPALITY 
IN A COUNTY.—In the case of any large munici-
pality any portion of which is in a county, such 
portion shall be treated as part of such munici-
pality and not part of such county. 
‘‘(4) 2009 UNEMPLOYMENT NUMBER.—For pur-
poses of this subsection, the term ‘2009 unemployment 
number’ means, with respect to any State, county or 
municipality, the number of individuals in such 
State, county, or municipality who were determined 
to be unemployed by the Bureau of Labor Statistics 
for December 2009. 
‘‘(5) 2010 NATIONAL LIMITATIONS.— 
‘‘(A) RECOVERY ZONE ECONOMIC DEVELOP-
MENT BONDS.—The 2010 national recovery zone 
economic 
development 
bond 
limitation 
is 
$10,000,000,000. Any allocation of such limita-
tion under this subsection shall be treated for 
purposes of section 1400U–2 in the same manner
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as an allocation of national recovery zone eco-
nomic development bond limitation. 
‘‘(B) RECOVERY ZONE FACILITY BONDS.— 
The 2010 national recovery zone facility bond 
limitation is $15,000,000,000. Any allocation of 
such limitation under this subsection shall be 
treated for purposes of section 1400U–3 in the 
same manner as an allocation of national recov-
ery zone facility bond limitation.’’. 
(c) AUTHORITY OF STATE TO WAIVE CERTAIN 2009 
ALLOCATIONS.—Subparagraph (A) of section 1400U– 
1(a)(3) is amended by adding at the end the following: ‘‘A 
county or municipality shall be treated as having waived 
any portion of an allocation made under this subparagraph 
which has not been allocated to a bond issued before May 
1, 2011. Any allocation waived (or treated as waived) under 
this subparagraph may be used or reallocated by the 
State.’’. 
SEC. 105. ALLOWANCE OF NEW MARKETS TAX CREDIT 
AGAINST ALTERNATIVE MINIMUM TAX. 
(a) IN
GENERAL.—Subparagraph (B) of section 
38(c)(4), as amended by the Patient Protection and Afford-
able Care Act, is amended by redesignating clauses (v) 
through (ix) as clauses (vi) through (x), respectively, and 
by inserting after clause (iv) the following new clause:
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‘‘(v) the credit determined under sec-
tion 45D, but only with respect to credits 
determined with respect to qualified equity 
investments (as defined in section 45D(b)) 
initially made before January 1, 2012,’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to credits determined with respect to 
qualified equity investments (as defined in section 45D(b) 
of the Internal Revenue Code of 1986) initially made after 
March 15, 2010. 
SEC. 106. EXTENSION OF TAX-EXEMPT ELIGIBILITY FOR 
LOANS GUARANTEED BY FEDERAL HOME 
LOAN BANKS. 
Clause (iv) of section 149(b)(3)(A) is amended by 
striking ‘‘December 31, 2010’’ and inserting ‘‘December 31, 
2011’’. 
SEC. 107. EXTENSION OF TEMPORARY SMALL ISSUER 
RULES FOR ALLOCATION OF TAX-EXEMPT IN-
TEREST EXPENSE BY FINANCIAL INSTITU-
TIONS. 
(a) IN GENERAL.—Clauses (i), (ii), and (iii) of section 
265(b)(3)(G) are each amended by striking ‘‘or 2010’’ and 
inserting ‘‘, 2010, or 2011’’.
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(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to electricity produced and sold after 
December 31, 2009. 
SEC. 204. EXTENSION AND MODIFICATION OF CREDIT FOR 
STEEL INDUSTRY FUEL. 
(a) CREDIT PERIOD.— 
(1) IN
GENERAL.—Subclause (II) of section 
45(e)(8)(D)(ii) is amended to read as follows: 
‘‘(II) CREDIT PERIOD.—In lieu of 
the 10-year period referred to in 
clauses (i) and (ii)(II) of subpara-
graph (A), the credit period shall be 
the period beginning on the date that 
the facility first produces steel industry 
fuel that is sold to an unrelated person 
after September 30, 2008, and ending 
2 years after such date.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
45(e)(8)(D) is amended by striking clause (iii) and 
by redesignating clause (iv) as clause (iii). 
(b) EXTENSION OF PLACED-IN-SERVICE DATE.—Sub-
paragraph (A) of section 45(d)(8) is amended— 
(1) by striking ‘‘(or any modification to a facil-
ity)’’; and 
(2) by striking ‘‘2010’’ and inserting ‘‘2011’’.
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(c) CLARIFICATIONS.— 
(1) STEEL INDUSTRY FUEL.—Subclause (I) of 
section 45(c)(7)(C)(i) is amended by inserting ‘‘, a 
blend of coal and petroleum coke, or other coke feed-
stock’’ after ‘‘on coal’’. 
(2) OWNERSHIP INTEREST.—Section 45(d)(8) is 
amended by adding at the end the following new flush 
sentence: 
‘‘With respect to a facility producing steel industry 
fuel, no person (including a ground lessor, customer, 
supplier, or technology licensor) shall be treated as 
having an ownership interest in the facility or as oth-
erwise entitled to the credit allowable under sub-
section (a) with respect to such facility if such per-
son’s rent, license fee, or other entitlement to net pay-
ments from the owner of such facility is measured by 
a fixed dollar amount or a fixed amount per ton, or 
otherwise determined without regard to the profit or 
loss of such facility.’’. 
(3) PRODUCTION AND SALE.—Subparagraph (D) 
of section 45(e)(8), as amended by subsection (a)(2), 
is amended by redesignating clause (iii) as clause (iv) 
and by inserting after clause (ii) the following new 
clause:
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‘‘(iii) PRODUCTION
AND
SALE.—The 
owner of a facility producing steel industry 
fuel shall be treated as producing and sell-
ing steel industry fuel where that owner 
manufactures such steel industry fuel from 
coal, a blend of coal and petroleum coke, or 
other coke feedstock to which it has title. 
The sale of such steel industry fuel by the 
owner of the facility to a person who is not 
the owner of the facility shall not fail to 
qualify as a sale to an unrelated person 
solely because such purchaser may also be a 
ground lessor, supplier, or customer.’’. 
(d) SPECIFIED CREDIT FOR PURPOSES OF ALTER-
NATIVE MINIMUM TAX EXCLUSION.—Subclause (II) of sec-
tion 38(c)(4)(B)(iii) is amended by inserting ‘‘(in the case 
of a refined coal production facility producing steel indus-
try fuel, during the credit period set forth in section 
45(e)(8)(D)(ii)(II))’’ after ‘‘service’’. 
(e) EFFECTIVE DATES.— 
(1) IN
GENERAL.—The amendments made by 
subsections (a), (b), and (d) shall take effect on the 
date of the enactment of this Act. 
(2) CLARIFICATIONS.—The amendments made by 
subsection (c) shall take effect as if included in the
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amendments made by the Energy Improvement and 
Extension Act of 2008. 
SEC. 205. CREDIT FOR PRODUCING FUEL FROM COKE OR 
COKE GAS. 
(a) IN GENERAL.—Paragraph (1) of section 45K(g) is 
amended by striking ‘‘January 1, 2010’’ and inserting 
‘‘January 1, 2011’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to facilities placed in service after De-
cember 31, 2009. 
SEC. 206. NEW ENERGY EFFICIENT HOME CREDIT. 
(a) IN GENERAL.—Subsection (g) of section 45L is 
amended by striking ‘‘December 31, 2009’’ and inserting 
‘‘December 31, 2010’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to homes acquired after December 31, 
2009. 
SEC. 207. EXCISE TAX CREDITS AND OUTLAY PAYMENTS 
FOR ALTERNATIVE FUEL AND ALTERNATIVE 
FUEL MIXTURES. 
(a) ALTERNATIVE FUEL CREDIT.—Paragraph (5) of 
section 6426(d) is amended by striking ‘‘after December 31, 
2009’’ and all that follows and inserting ‘‘after— 
‘‘(A) September 30, 2014, in the case of liq-
uefied hydrogen,
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‘‘(B) December 31, 2010, in the case of fuels 
described in subparagraph (A), (C), (F), or (G) 
of paragraph (2), and 
‘‘(C) December 31, 2009, in any other 
case.’’. 
(b) ALTERNATIVE FUEL MIXTURE CREDIT.—Para-
graph (3) of section 6426(e) is amended by striking ‘‘after 
December 31, 2009’’ and all that follows and inserting 
‘‘after— 
‘‘(A) September 30, 2014, in the case of liq-
uefied hydrogen, 
‘‘(B) December 31, 2010, in the case of fuels 
described in subparagraph (A), (C), (F), or (G) 
of subsection (d)(2), and 
‘‘(C) December 31, 2009, in any other 
case.’’. 
(c) PAYMENT AUTHORITY.— 
(1) IN
GENERAL.—Paragraph (6) of section 
6427(e) is amended by striking ‘‘and’’ at the end of 
subparagraph (C), by striking the period at the end 
of subparagraph (D) and inserting ‘‘, and’’, and by 
adding at the end the following new subparagraph: 
‘‘(E) any alternative fuel or alternative fuel 
mixture (as so defined) involving fuel described 
in subparagraph (A), (C), (F), or (G) of section
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6426(d)(2) sold or used after December 31, 
2010.’’. 
(2) CONFORMING
AMENDMENT.—Subparagraph 
(C) of section 6427(e)(6) is amended by inserting ‘‘or 
(E)’’ after ‘‘subparagraph (D)’’. 
(d) EXCLUSION OF BLACK LIQUOR FROM CREDIT ELI-
GIBILITY.—The last sentence of section 6426(d)(2) is 
amended by striking ‘‘or biodiesel’’ and inserting ‘‘biodiesel, 
or any fuel (including lignin, wood residues, or spent 
pulping liquors) derived from the production of paper or 
pulp’’. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall apply to fuel sold or used after December 31, 
2009. 
SEC. 208. SPECIAL RULE FOR SALES OR DISPOSITIONS TO 
IMPLEMENT FERC OR STATE ELECTRIC RE-
STRUCTURING POLICY FOR QUALIFIED ELEC-
TRIC UTILITIES. 
(a) IN GENERAL.—Paragraph (3) of section 451(i) is 
amended by striking ‘‘January 1, 2010’’ and inserting 
‘‘January 1, 2011’’. 
(b) MODIFICATION OF DEFINITION OF INDEPENDENT 
TRANSMISSION COMPANY.— 
(1) 
IN
GENERAL.—Clause 
(i) 
of 
section 
451(i)(4)(B) is amended to read as follows:
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‘‘(i) who the Federal Energy Regu-
latory Commission determines in its au-
thorization of the transaction under section 
203 of the Federal Power Act (16 U.S.C. 
824b) or by declaratory order— 
‘‘(I) is not itself a market partici-
pant as determined by the Commis-
sion, and also is not controlled by any 
such market participant, or 
‘‘(II) to be independent from mar-
ket participants or to be an inde-
pendent transmission company within 
the meaning of such Commission’s 
rules applicable to independent trans-
mission providers, and’’. 
(2) RELATED PERSONS.—Paragraph (4) of sec-
tion 451(i) is amended by adding at the end the fol-
lowing flush sentence: 
‘‘For purposes of subparagraph (B)(i)(I), a person 
shall be treated as controlled by another person if 
such persons would be treated as a single employer 
under section 52.’’. 
(c) EFFECTIVE DATE.—
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(1) IN GENERAL.—The amendment made by sub-
section (a) shall apply to dispositions after December 
31, 2009. 
(2) MODIFICATIONS.—The amendments made by 
subsection (b) shall apply to dispositions after the 
date of the enactment of this Act. 
SEC. 209. SUSPENSION OF LIMITATION ON PERCENTAGE 
DEPLETION FOR OIL AND GAS FROM MAR-
GINAL WELLS. 
(a) 
IN
GENERAL.—Clause 
(ii) 
of 
section 
613A(c)(6)(H) is amended by striking ‘‘January 1, 2010’’ 
and inserting ‘‘January 1, 2011’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2009. 
SEC. 210. DIRECT PAYMENT OF ENERGY EFFICIENT APPLI-
ANCES TAX CREDIT. 
In the case of any taxable year which includes the last 
day of calendar year 2009 or calendar year 2010, a tax-
payer who elects to waive the credit which would otherwise 
be determined with respect to the taxpayer under section 
45M of the Internal Revenue Code of 1986 for such taxable 
year shall be treated as making a payment against the tax 
imposed under subtitle A of such Code for such taxable year 
in an amount equal to 85 percent of the amount of the cred-
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it which would otherwise be so determined. Such payment 
shall be treated as made on the later of the due date of the 
return of such tax or the date on which such return is filed. 
Elections under this section may be made separately for 
2009 and 2010, but once made shall be irrevocable. No 
amount shall be includible in gross income or alternative 
minimum taxable income by reason of this section. 
SEC. 211. MODIFICATION OF STANDARDS FOR WINDOWS, 
DOORS, AND SKYLIGHTS WITH RESPECT TO 
THE CREDIT FOR NONBUSINESS ENERGY 
PROPERTY. 
(a) IN GENERAL.—Paragraph (4) of section 25C(c) is 
amended by striking ‘‘unless’’ and all that follows and in-
serting ‘‘unless— 
‘‘(A) in the case of any component placed in 
service after the date which is 90 days after the 
date of the enactment of the American Jobs and 
Closing Tax Loopholes Act of 2010, such compo-
nent meets the criteria for such components es-
tablished by the 2010 Energy Star Program Re-
quirements for Residential Windows, Doors, and 
Skylights, Version 5.0 (or any subsequent version 
of such requirements which is in effect after Jan-
uary 4, 2010),
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‘‘(B) in the case of any component placed 
in service after the date of the enactment of the 
American Jobs and Closing Tax Loopholes Act of 
2010 and on or before the date which is 90 days 
after such date, such component meets the cri-
teria described in subparagraph (A) or is equal 
to or below a U factor of 0.30 and SHGC of 
0.30, and 
‘‘(C) in the case of any component which is 
a garage door, such component is equal to or 
below a U factor of 0.30 and SHGC of 0.30.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to property placed in service after the 
date of the enactment of this Act. 
Subtitle B—Individual Tax Relief 
PART I—MISCELLANEOUS PROVISIONS 
SEC. 221. DEDUCTION FOR CERTAIN EXPENSES OF ELEMEN-
TARY AND SECONDARY SCHOOL TEACHERS. 
(a) IN
GENERAL.—Subparagraph (D) of section 
62(a)(2) is amended by striking ‘‘or 2009’’ and inserting 
‘‘2009, or 2010’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2009.
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SEC. 222. ADDITIONAL STANDARD DEDUCTION FOR STATE 
AND LOCAL REAL PROPERTY TAXES. 
(a) IN
GENERAL.—Subparagraph (C) of section 
63(c)(1) is amended by striking ‘‘or 2009’’ and inserting 
‘‘2009, or 2010’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2009. 
SEC. 223. DEDUCTION OF STATE AND LOCAL SALES TAXES. 
(a) IN
GENERAL.—Subparagraph (I) of section 
164(b)(5) is amended by striking ‘‘January 1, 2010’’ and 
inserting ‘‘January 1, 2011’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2009. 
SEC. 224. CONTRIBUTIONS OF CAPITAL GAIN REAL PROP-
ERTY MADE FOR CONSERVATION PURPOSES. 
(a) IN GENERAL.—Clause (vi) of section 170(b)(1)(E) 
is amended by striking ‘‘December 31, 2009’’ and inserting 
‘‘December 31, 2010’’. 
(b) CONTRIBUTIONS BY CERTAIN CORPORATE FARM-
ERS AND RANCHERS.—Clause (iii) of section 170(b)(2)(B) 
is amended by striking ‘‘December 31, 2009’’ and inserting 
‘‘December 31, 2010’’.
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‘‘(1) IN GENERAL.—The housing credit agency of 
each State shall be allowed a credit in an amount 
equal to such State’s 2010 low-income housing refund-
able credit election amount, which shall be payable by 
the Secretary as provided in paragraph (5). 
‘‘(2) 2010 LOW-INCOME HOUSING REFUNDABLE 
CREDIT
ELECTION
AMOUNT.—For purposes of this 
subsection, the term ‘2010 low-income housing refund-
able credit election amount’ means, with respect to 
any State, such amount as the State may elect which 
does not exceed 85 percent of the product of— 
‘‘(A) the sum of— 
‘‘(i) 100 percent of the State housing 
credit ceiling for 2010 which is attributable 
to amounts described in clauses (i) and (iii) 
of subsection (h)(3)(C), and 
‘‘(ii) 40 percent of the State housing 
credit ceiling for 2010 which is attributable 
to amounts described in clauses (ii) and 
(iv) of such subsection, multiplied by 
‘‘(B) 10. 
‘‘(3) COORDINATION
WITH
NON-REFUNDABLE 
CREDIT.—For purposes of this section, the amounts 
described in clauses (i) through (iv) of subsection 
(h)(3)(C) with respect to any State for 2010 shall
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each be reduced by so much of such amount as is 
taken into account in determining the amount of the 
credit allowed with respect to such State under para-
graph (1). 
‘‘(4) SPECIAL
RULE
FOR
BASIS.—Basis of a 
qualified low-income building shall not be reduced by 
the amount of any payment made under this sub-
section. 
‘‘(5) PAYMENT
OF
CREDIT; USE
TO
FINANCE 
LOW-INCOME BUILDINGS.—The Secretary shall pay to 
the housing credit agency of each State an amount 
equal to the credit allowed under paragraph (1). 
Rules similar to the rules of subsections (c) and (d) 
of section 1602 of the American Recovery and Rein-
vestment Tax Act of 2009 shall apply with respect to 
any payment made under this paragraph, except that 
such subsection (d) shall be applied by substituting 
‘January 1, 2012’ for ‘January 1, 2011’.’’. 
(b) CONFORMING AMENDMENT.—Section 1324(b)(2) of 
title 31, United States Code, is amended by inserting 
‘‘42(n),’’ after ‘‘36C,’’.
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Subtitle C—Business Tax Relief 
SEC. 241. RESEARCH CREDIT. 
(a) IN
GENERAL.—Subparagraph (B) of section 
41(h)(1) is amended by striking ‘‘December 31, 2009’’ and 
inserting ‘‘December 31, 2010’’. 
(b) CONFORMING AMENDMENT.—Subparagraph (D) of 
section 45C(b)(1) is amended by striking ‘‘December 31, 
2009’’ and inserting ‘‘December 31, 2010’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to amounts paid or incurred after De-
cember 31, 2009. 
SEC. 242. INDIAN EMPLOYMENT TAX CREDIT. 
(a) IN GENERAL.—Subsection (f) of section 45A is 
amended by striking ‘‘December 31, 2009’’ and inserting 
‘‘December 31, 2010’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2009. 
SEC. 243. NEW MARKETS TAX CREDIT. 
(a) IN
GENERAL.—Subparagraph (F) of section 
45D(f)(1) is amended by inserting ‘‘and 2010’’ after 
‘‘2009’’. 
(b) CONFORMING AMENDMENT.—Paragraph (3) of sec-
tion 45D(f) is amended by striking ‘‘2014’’ and inserting 
‘‘2015’’.
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(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to calendar years beginning after 2009. 
SEC. 244. RAILROAD TRACK MAINTENANCE CREDIT. 
(a) IN GENERAL.—Subsection (f) of section 45G is 
amended by striking ‘‘January 1, 2010’’ and inserting 
‘‘January 1, 2011’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to expenditures paid or incurred in tax-
able years beginning after December 31, 2009. 
SEC. 245. MINE RESCUE TEAM TRAINING CREDIT. 
(a) IN GENERAL.—Subsection (e) of section 45N is 
amended by striking ‘‘December 31, 2009’’ and inserting 
‘‘December 31, 2010’’. 
(b) CREDIT ALLOWABLE AGAINST AMT.—Subpara-
graph (B) of section 38(c)(4), as amended by section 105, 
is amended— 
(1) by redesignating clauses (vii) through (x) as 
clauses (viii) through (xi), respectively; and 
(2) by inserting after clause (vi) the following 
new clause: 
‘‘(vii) the credit determined under sec-
tion 45N,’’. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section shall
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apply to taxable years beginning after December 31, 
2009. 
(2) ALLOWANCE
AGAINST
AMT.—The amend-
ments made by subsection (b) shall apply to credits 
determined for taxable years beginning after Decem-
ber 31, 2009, and to carrybacks of such credits. 
SEC. 246. EMPLOYER WAGE CREDIT FOR EMPLOYEES WHO 
ARE ACTIVE DUTY MEMBERS OF THE UNI-
FORMED SERVICES. 
(a) IN GENERAL.—Subsection (f) of section 45P is 
amended by striking ‘‘December 31, 2009’’ and inserting 
‘‘December 31, 2010’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to payments made after December 31, 
2009. 
SEC. 247. 5-YEAR DEPRECIATION FOR FARMING BUSINESS 
MACHINERY AND EQUIPMENT. 
(a) IN GENERAL.—Clause (vii) of section 168(e)(3)(B) 
is amended by striking ‘‘January 1, 2010’’ and inserting 
‘‘January 1, 2011’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to property placed in service after De-
cember 31, 2009.
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SEC. 250. ACCELERATED DEPRECIATION FOR BUSINESS 
PROPERTY ON AN INDIAN RESERVATION. 
(a) IN GENERAL.—Paragraph (8) of section 168(j) is 
amended by striking ‘‘December 31, 2009’’ and inserting 
‘‘December 31, 2010’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to property placed in service after De-
cember 31, 2009. 
SEC. 251. ENHANCED CHARITABLE DEDUCTION FOR CON-
TRIBUTIONS OF FOOD INVENTORY. 
(a) IN GENERAL.—Clause (iv) of section 170(e)(3)(C) 
is amended by striking ‘‘December 31, 2009’’ and inserting 
‘‘December 31, 2010’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to contributions made after December 
31, 2009. 
SEC. 252. ENHANCED CHARITABLE DEDUCTION FOR CON-
TRIBUTIONS OF BOOK INVENTORIES TO PUB-
LIC SCHOOLS. 
(a) IN GENERAL.—Clause (iv) of section 170(e)(3)(D) 
is amended by striking ‘‘December 31, 2009’’ and inserting 
‘‘December 31, 2010’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to contributions made after December 
31, 2009.
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SEC. 253. ENHANCED CHARITABLE DEDUCTION FOR COR-
PORATE CONTRIBUTIONS OF COMPUTER IN-
VENTORY FOR EDUCATIONAL PURPOSES. 
(a) IN
GENERAL.—Subparagraph (G) of section 
170(e)(6) is amended by striking ‘‘December 31, 2009’’ and 
inserting ‘‘December 31, 2010’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to contributions made in taxable years 
beginning after December 31, 2009. 
SEC. 254. ELECTION TO EXPENSE MINE SAFETY EQUIP-
MENT. 
(a) IN GENERAL.—Subsection (g) of section 179E is 
amended by striking ‘‘December 31, 2009’’ and inserting 
‘‘December 31, 2010’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to property placed in service after De-
cember 31, 2009. 
SEC. 255. SPECIAL EXPENSING RULES FOR CERTAIN FILM 
AND TELEVISION PRODUCTIONS. 
(a) IN GENERAL.—Subsection (f) of section 181 is 
amended by striking ‘‘December 31, 2009’’ and inserting 
‘‘December 31, 2010’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to productions commencing after Decem-
ber 31, 2009.
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SEC. 256. EXPENSING OF ENVIRONMENTAL REMEDIATION 
COSTS. 
(a) IN GENERAL.—Subsection (h) of section 198 is 
amended by striking ‘‘December 31, 2009’’ and inserting 
‘‘December 31, 2010’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to expenditures paid or incurred after 
December 31, 2009. 
SEC. 257. DEDUCTION ALLOWABLE WITH RESPECT TO IN-
COME ATTRIBUTABLE TO DOMESTIC PRODUC-
TION ACTIVITIES IN PUERTO RICO. 
(a) IN
GENERAL.—Subparagraph (C) of section 
199(d)(8) is amended— 
(1) by striking ‘‘first 4 taxable years’’ and in-
serting ‘‘first 5 taxable years’’; and 
(2) by striking ‘‘January 1, 2010’’ and inserting 
‘‘January 1, 2011’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2009. 
SEC. 258. MODIFICATION OF TAX TREATMENT OF CERTAIN 
PAYMENTS TO CONTROLLING EXEMPT ORGA-
NIZATIONS. 
(a) IN GENERAL.—Clause (iv) of section 512(b)(13)(E) 
is amended by striking ‘‘December 31, 2009’’ and inserting 
‘‘December 31, 2010’’.
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(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to payments received or accrued after 
December 31, 2009. 
SEC. 259. EXCLUSION OF GAIN OR LOSS ON SALE OR EX-
CHANGE OF CERTAIN BROWNFIELD SITES 
FROM UNRELATED BUSINESS INCOME. 
(a) IN
GENERAL.—Subparagraph (K) of section 
512(b)(19) is amended by striking ‘‘December 31, 2009’’ 
and inserting ‘‘December 31, 2010’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to property acquired after December 31, 
2009. 
SEC. 260. TIMBER REIT MODERNIZATION. 
(a) IN GENERAL.—Paragraph (8) of section 856(c) is 
amended by striking ‘‘means’’ and all that follows and in-
serting ‘‘means December 31, 2010.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Subparagraph (I) of section 856(c)(2) is 
amended by striking ‘‘the first taxable year beginning 
after the date of the enactment of this subparagraph’’ 
and inserting ‘‘a taxable year beginning on or before 
the termination date’’. 
(2) Clause (iii) of section 856(c)(5)(H) is 
amended by inserting ‘‘in taxable years beginning’’ 
after ‘‘dispositions’’.
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(3) Clause (v) of section 857(b)(6)(D) is amended 
by inserting ‘‘in a taxable year beginning’’ after 
‘‘sale’’. 
(4) Subparagraph (G) of section 857(b)(6) is 
amended by inserting ‘‘in a taxable year beginning’’ 
after ‘‘In the case of a sale’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years ending after May 22, 
2009. 
SEC. 261. TREATMENT OF CERTAIN DIVIDENDS OF REGU-
LATED INVESTMENT COMPANIES. 
(a) IN GENERAL.—Paragraphs (1)(C) and (2)(C) of 
section 871(k) are each amended by striking ‘‘December 31, 
2009’’ and inserting ‘‘December 31, 2010’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2009. 
SEC. 262. RIC QUALIFIED INVESTMENT ENTITY TREATMENT 
UNDER FIRPTA. 
(a) IN GENERAL.—Clause (ii) of section 897(h)(4)(A) 
is amended by striking ‘‘December 31, 2009’’ and inserting 
‘‘December 31, 2010’’. 
(b) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendment made by sub-
section (a) shall take effect on January 1, 2010. Not-
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withstanding the preceding sentence, such amendment 
shall not apply with respect to the withholding re-
quirement under section 1445 of the Internal Revenue 
Code of 1986 for any payment made before the date 
of the enactment of this Act. 
(2) AMOUNTS WITHHELD ON OR BEFORE DATE 
OF ENACTMENT.—In the case of a regulated invest-
ment company— 
(A) which makes a distribution after De-
cember 31, 2009, and before the date of the enact-
ment of this Act; and 
(B) which would (but for the second sen-
tence of paragraph (1)) have been required to 
withhold with respect to such distribution under 
section 1445 of such Code, 
such investment company shall not be liable to any 
person to whom such distribution was made for any 
amount so withheld and paid over to the Secretary of 
the Treasury. 
SEC. 263. EXCEPTIONS FOR ACTIVE FINANCING INCOME. 
(a) IN GENERAL.—Sections 953(e)(10) and 954(h)(9) 
are each amended by striking ‘‘January 1, 2010’’ and in-
serting ‘‘January 1, 2011’’.
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(b) CONFORMING AMENDMENT.—Section 953(e)(10) is 
amended by striking ‘‘December 31, 2009’’ and inserting 
‘‘December 31, 2010’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years of foreign corporations 
beginning after December 31, 2009, and to taxable years 
of United States shareholders with or within which any 
such taxable year of such foreign corporation ends. 
SEC. 264. LOOK-THRU TREATMENT OF PAYMENTS BETWEEN 
RELATED CONTROLLED FOREIGN CORPORA-
TIONS UNDER FOREIGN PERSONAL HOLDING 
COMPANY RULES. 
(a) IN
GENERAL.—Subparagraph (C) of section 
954(c)(6) is amended by striking ‘‘January 1, 2010’’ and 
inserting ‘‘January 1, 2011’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years of foreign corporations 
beginning after December 31, 2009, and to taxable years 
of United States shareholders with or within which any 
such taxable year of such foreign corporation ends.
•HR 4213 EAH1S 
SEC. 265. BASIS ADJUSTMENT TO STOCK OF S CORPS MAK-
ING CHARITABLE CONTRIBUTIONS OF PROP-
ERTY. 
(a) IN GENERAL.—Paragraph (2) of section 1367(a) 
is amended by striking ‘‘December 31, 2009’’ and inserting 
‘‘December 31, 2010’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to contributions made in taxable years 
beginning after December 31, 2009. 
SEC. 266. EMPOWERMENT ZONE TAX INCENTIVES. 
(a) IN GENERAL.—Section 1391 is amended— 
(1) by striking ‘‘December 31, 2009’’ in sub-
section (d)(1)(A)(i) and inserting ‘‘December 31, 
2010’’; and 
(2) by striking the last sentence of subsection 
(h)(2). 
(b) INCREASED EXCLUSION OF GAIN ON STOCK OF EM-
POWERMENT ZONE BUSINESSES.—Subparagraph (C) of 
section 1202(a)(2) is amended— 
(1) by striking ‘‘December 31, 2014’’ and insert-
ing ‘‘December 31, 2015’’; and 
(2) by striking ‘‘2014’’ in the heading and insert-
ing ‘‘2015’’. 
(c) TREATMENT OF CERTAIN TERMINATION DATES 
SPECIFIED IN NOMINATIONS.—In the case of a designation 
of an empowerment zone the nomination for which included
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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 
shall not apply with respect to such designation unless, 
after the date of the enactment of this section, the entity 
which made such nomination reconfirms such termination 
date, or amends the nomination to provide for a new termi-
nation date, in such manner as the Secretary of the Treas-
ury (or the Secretary’s designee) may provide. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to periods after December 31, 2009. 
SEC. 267. TAX INCENTIVES FOR INVESTMENT IN THE DIS-
TRICT OF COLUMBIA. 
(a) IN GENERAL.—Subsection (f) of section 1400 is 
amended by striking ‘‘December 31, 2009’’ each place it ap-
pears and inserting ‘‘December 31, 2010’’. 
(b) TAX-EXEMPT DC EMPOWERMENT ZONE BONDS.— 
Subsection (b) of section 1400A is amended by striking ‘‘De-
cember 31, 2009’’ and inserting ‘‘December 31, 2010’’. 
(c) ZERO-PERCENT CAPITAL GAINS RATE.— 
(1) ACQUISITION DATE.—Paragraphs (2)(A)(i), 
(3)(A), (4)(A)(i), and (4)(B)(i)(I) of section 1400B(b) 
are each amended by striking ‘‘January 1, 2010’’ and 
inserting ‘‘January 1, 2011’’.
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(2) LIMITATION ON PERIOD OF GAINS.— 
(A) IN GENERAL.—Paragraph (2) of section 
1400B(e) is amended— 
(i) by striking ‘‘December 31, 2014’’ 
and inserting ‘‘December 31, 2015’’; and 
(ii) by striking ‘‘2014’’ in the heading 
and inserting ‘‘2015’’. 
(B) PARTNERSHIPS
AND
S-CORPS.—Para-
graph (2) of section 1400B(g) is amended by 
striking ‘‘December 31, 2014’’ and inserting ‘‘De-
cember 31, 2015’’. 
(d) FIRST-TIME HOMEBUYER CREDIT.—Subsection (i) 
of section 1400C is amended by striking ‘‘January 1, 2010’’ 
and inserting ‘‘January 1, 2011’’. 
(e) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as otherwise provided 
in this subsection, the amendments made by this sec-
tion shall apply to periods after December 31, 2009. 
(2) 
TAX-EXEMPT
DC
EMPOWERMENT
ZONE 
BONDS.—The amendment made by subsection (b) 
shall apply to bonds issued after December 31, 2009. 
(3) ACQUISITION
DATES
FOR
ZERO-PERCENT 
CAPITAL
GAINS
RATE.—The amendments made by 
subsection (c) shall apply to property acquired or sub-
stantially improved after December 31, 2009.
•HR 4213 EAH1S 
(4) 
HOMEBUYER
CREDIT.—The 
amendment 
made by subsection (d) shall apply to homes pur-
chased after December 31, 2009. 
SEC. 268. RENEWAL COMMUNITY TAX INCENTIVES. 
(a) IN GENERAL.—Subsection (b) of section 1400E is 
amended— 
(1) by striking ‘‘December 31, 2009’’ in para-
graphs (1)(A) and (3) and inserting ‘‘December 31, 
2010’’; and 
(2) by striking ‘‘January 1, 2010’’ in paragraph 
(3) and inserting ‘‘January 1, 2011’’. 
(b) ZERO-PERCENT CAPITAL GAINS RATE.— 
(1) ACQUISITION DATE.—Paragraphs (2)(A)(i), 
(3)(A), (4)(A)(i), and (4)(B)(i) of section 1400F(b) 
are each amended by striking ‘‘January 1, 2010’’ and 
inserting ‘‘January 1, 2011’’. 
(2) LIMITATION ON PERIOD OF GAINS.—Para-
graph (2) of section 1400F(c) is amended— 
(A) by striking ‘‘December 31, 2014’’ and 
inserting ‘‘December 31, 2015’’; and 
(B) by striking ‘‘2014’’ in the heading and 
inserting ‘‘2015’’. 
(3) CLERICAL AMENDMENT.—Subsection (d) of 
section 1400F is amended by striking ‘‘and ‘December 
31, 2014’ for ‘December 31, 2014’ ’’.
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date, in such manner as the Secretary of the Treasury (or 
the Secretary’s designee) may provide. 
(f) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as otherwise provided 
in this subsection, the amendments made by this sec-
tion shall apply to periods after December 31, 2009. 
(2) ACQUISITIONS.—The amendments made by 
subsections (b)(1) and (d) shall apply to acquisitions 
after December 31, 2009. 
(3) COMMERCIAL REVITALIZATION DEDUCTION.— 
(A) IN
GENERAL.—The amendment made 
by subsection (c)(1) shall apply to buildings 
placed in service after December 31, 2009. 
(B) 
CONFORMING
AMENDMENT.—The 
amendment made by subsection (c)(2) shall 
apply to calendar years beginning after Decem-
ber 31, 2009. 
SEC. 269. TEMPORARY INCREASE IN LIMIT ON COVER OVER 
OF RUM EXCISE TAXES TO PUERTO RICO AND 
THE VIRGIN ISLANDS. 
(a) IN GENERAL.—Paragraph (1) of section 7652(f) is 
amended by striking ‘‘January 1, 2010’’ and inserting 
‘‘January 1, 2011’’.
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(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to distilled spirits brought into the 
United States after December 31, 2009. 
SEC. 270. PAYMENT TO AMERICAN SAMOA IN LIEU OF EX-
TENSION 
OF 
ECONOMIC 
DEVELOPMENT 
CREDIT. 
The Secretary of the Treasury (or his designee) shall 
pay $18,000,000 to the Government of American Samoa for 
purposes of economic development. The payment made 
under the preceding sentence shall be treated for purposes 
of section 1324 of title 31, United States Code, as a refund 
of internal revenue collections to which such section applies. 
SEC. 271. ELECTION TO TEMPORARILY UTILIZE UNUSED 
AMT CREDITS DETERMINED BY DOMESTIC IN-
VESTMENT. 
(a) IN GENERAL.—Section 53 is amended by adding 
at the end the following new subsection: 
‘‘(g) ELECTION FOR CORPORATIONS WITH NEW DO-
MESTIC INVESTMENTS.— 
‘‘(1) IN
GENERAL.—If a corporation elects to 
have this subsection apply for its first taxable year 
beginning after December 31, 2009, the limitation im-
posed by subsection (c) for such taxable year shall be 
increased by the AMT credit adjustment amount.
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‘‘(2) AMT CREDIT ADJUSTMENT AMOUNT.—For 
purposes of paragraph (1), the term ‘AMT credit ad-
justment amount’ means, the lesser of— 
‘‘(A) 50 percent of a corporation’s min-
imum tax credit for its first taxable year begin-
ning after December 31, 2009, determined under 
subsection (b), or 
‘‘(B) 10 percent of new domestic invest-
ments made during such taxable year. 
‘‘(3) NEW DOMESTIC INVESTMENTS.—For pur-
poses of this subsection, the term ‘new domestic in-
vestments’ means the cost of qualified property (as de-
fined in section 168(k)(2)(A)(i))— 
‘‘(A) the original use of which commences 
with the taxpayer during the taxable year, and 
‘‘(B) which is placed in service in the 
United States by the taxpayer during such tax-
able year. 
‘‘(4) CREDIT
REFUNDABLE.—For purposes of 
subsection (b) of section 6401, the aggregate increase 
in the credits allowable under this part for any tax-
able year resulting from the application of this sub-
section shall be treated as allowed under subpart C 
(and not under any other subpart). For purposes of 
section 6425, any amount treated as so allowed shall
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be treated as a payment of estimated income tax for 
the taxable year. 
‘‘(5) ELECTION.—An election under this sub-
section shall be made at such time and in such man-
ner as prescribed by the Secretary, and once made, 
may be revoked only with the consent of the Sec-
retary. Not later than 90 days after the date of the 
enactment of this subsection, the Secretary shall issue 
guidance specifying such time and manner. 
‘‘(6) TREATMENT OF CERTAIN PARTNERSHIP IN-
VESTMENTS.—For purposes of this subsection, a cor-
poration shall take into account its allocable share of 
any new domestic investments by a partnership for 
any taxable year if, and only if, more than 90 per-
cent of the capital and profits interests in such part-
nership are owned by such corporation (directly or 
indirectly) at all times during such taxable year. 
‘‘(7) NO DOUBLE BENEFIT.— 
‘‘(A) IN GENERAL.—A corporation making 
an election under this subsection may not make 
an election under subparagraph (H) of section 
172(b)(1). 
‘‘(B) SPECIAL
RULES
WITH
RESPECT
TO 
TAXPAYERS PREVIOUSLY ELECTING APPLICABLE 
NET OPERATING LOSSES.— In the case of a cor-
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poration which made an election under subpara-
graph (H) of section 172(b)(1) and elects the ap-
plication of this subsection— 
‘‘(i) ELECTION
OF
APPLICABLE
NET 
OPERATING LOSS TREATED AS REVOKED.— 
The election under such subparagraph (H) 
shall (notwithstanding clause (iii)(II) of 
such subparagraph) be treated as having 
been revoked by the taxpayer. 
‘‘(ii) COORDINATION WITH PROVISION 
FOR
EXPEDITED
REFUND.—The amount 
otherwise treated as a payment of estimated 
income tax under the last sentence of para-
graph (4) shall be reduced (but not below 
zero) by the aggregate increase in unpaid 
tax liability determined under this chapter 
by reason of the revocation of the election 
under clause (i). 
‘‘(iii) APPLICATION
OF
STATUTE
OF 
LIMITATIONS.—With respect to the revoca-
tion of an election under clause (i)— 
‘‘(I) the statutory period for the 
assessment of any deficiency attrib-
utable to such revocation shall not ex-
pire before the end of the 3-year period
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beginning on the date of the election to 
have this subsection apply, and 
‘‘(II) such deficiency may be as-
sessed before the expiration of such 3- 
year period notwithstanding the provi-
sions of any other law or rule of law 
which would otherwise prevent such as-
sessment. 
‘‘(C) EXCEPTION
FOR
ELIGIBLE
SMALL 
BUSINESSES.—Subparagraphs (A) and (B) shall 
not apply to an eligible small business as defined 
in section 172(b)(1)(H)(v)(II). 
‘‘(8) REGULATIONS.—The Secretary may issue 
such regulations or other guidance as may be nec-
essary or appropriate to carry out the purposes of 
this subsection, including to prevent fraud and abuse 
under this subsection.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 6211(b)(4)(A) is amended by insert-
ing ‘‘53(g),’’ after ‘‘53(e),’’. 
(2) Section 1324(b)(2) of title 31, United States 
Code, is amended by inserting ‘‘53(g),’’ after ‘‘53(e),’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2009.
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SEC. 272. STUDY OF EXTENDED TAX EXPENDITURES. 
(a) FINDINGS.—Congress finds the following: 
(1) Currently, the aggregate cost of Federal tax 
expenditures rivals, or even exceeds, the amount of 
total Federal discretionary spending. 
(2) Given the escalating public debt, a critical 
examination of this use of taxpayer dollars is essen-
tial. 
(3) Additionally, tax expenditures can com-
plicate the Internal Revenue Code of 1986 for tax-
payers and complicate tax administration for the In-
ternal Revenue Service. 
(4) To facilitate a better understanding of tax 
expenditures in the future, it is constructive for legis-
lation extending these provisions to include a study of 
such provisions.
(b) REQUIREMENT TO REPORT.—Not later than No-
vember 30, 2010, the Chief of Staff of the Joint Committee 
on Taxation, in consultation with the Comptroller General 
of the United States, shall submit to the Committee on Ways 
and Means of the House of Representatives and the Com-
mittee on Finance of the Senate a report on each tax ex-
penditure (as defined in section 3(3) of the Congressional 
Budget Impoundment Control Act of 1974 (2 U.S.C. 
622(3)) extended by this title.
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(c) ROLLING SUBMISSION OF REPORTS.—The Chief of 
Staff of the Joint Committee on Taxation shall initially 
submit the reports for each such tax expenditure enacted 
in this subtitle (relating to business tax relief) and subtitle 
A (relating to energy) in order of the tax expenditure incur-
ring the least aggregate cost to the greatest aggregate cost 
(determined by reference to the cost estimate of this Act by 
the Joint Committee on Taxation). Thereafter, such reports 
may be submitted in such order as the Chief of Staff deter-
mines appropriate. 
(d) CONTENTS OF REPORT.—Such reports shall con-
tain the following: 
(1) An explanation of the tax expenditure and 
any relevant economic, social, or other context under 
which it was first enacted. 
(2) A description of the intended purpose of the 
tax expenditure. 
(3) An analysis of the overall success of the tax 
expenditure in achieving such purpose, and evidence 
supporting such analysis. 
(4) An analysis of the extent to which further ex-
tending the tax expenditure, or making it permanent, 
would contribute to achieving such purpose.
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(5) A description of the direct and indirect bene-
ficiaries of the tax expenditure, including identifying 
any unintended beneficiaries. 
(6) An analysis of whether the tax expenditure 
is the most cost-effective method for achieving the pur-
pose for which it was intended, and a description of 
any more cost-effective methods through which such 
purpose could be accomplished. 
(7) A description of any unintended effects of the 
tax expenditure that are useful in understanding the 
tax expenditure’s overall value. 
(8) An analysis of how the tax expenditure could 
be modified to better achieve its original purpose. 
(9) A brief description of any interactions (ac-
tual or potential) with other tax expenditures or di-
rect spending programs in the same or related budget 
function worthy of further study. 
(10) A description of any unavailable informa-
tion the staff of the Joint Committee on Taxation 
may need to complete a more thorough examination 
and analysis of the tax expenditure, and what must 
be done to make such information available. 
(e) MINIMUM ANALYSIS BY DEADLINE.—In the event 
the Chief of Staff of the Joint Committee on Taxation con-
cludes it will not be feasible to complete all reports by the
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date specified in subsection (a), at a minimum, the reports 
for each tax expenditure enacted in this subtitle (relating 
to business tax relief) and subtitle A (relating to energy) 
shall be completed by such date. 
Subtitle D—Temporary Disaster 
Relief Provisions 
PART I—NATIONAL DISASTER RELIEF 
SEC. 281. WAIVER OF CERTAIN MORTGAGE REVENUE BOND 
REQUIREMENTS. 
(a) IN GENERAL.—Paragraph (11) of section 143(k) 
is amended by striking ‘‘January 1, 2010’’ and inserting 
‘‘January 1, 2011’’. 
(b) SPECIAL RULE FOR RESIDENCES DESTROYED IN 
FEDERALLY DECLARED DISASTERS.—Paragraph (13) of 
section 143(k), as redesignated by subsection (c), is amended 
by striking ‘‘January 1, 2010’’ in subparagraphs (A)(i) and 
(B)(i) and inserting ‘‘January 1, 2011’’. 
(c) TECHNICAL AMENDMENT.—Subsection (k) of sec-
tion 143 is amended by redesignating the second paragraph 
(12) (relating to special rules for residences destroyed in 
federally declared disasters) as paragraph (13). 
(d) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as otherwise provided 
in this subsection, the amendment made by this sec-
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tion shall apply to bonds issued after December 31, 
2009. 
(2) RESIDENCES DESTROYED IN FEDERALLY DE-
CLARED DISASTERS.—The amendments made by sub-
section (b) shall apply with respect to disasters occur-
ring after December 31, 2009. 
(3) TECHNICAL AMENDMENT.—The amendment 
made by subsection (c) shall take effect as if included 
in section 709 of the Tax Extenders and Alternative 
Minimum Tax Relief Act of 2008. 
SEC. 282. LOSSES ATTRIBUTABLE TO FEDERALLY DE-
CLARED DISASTERS. 
(a) 
IN
GENERAL.—Subclause 
(I) 
of 
section 
165(h)(3)(B)(i) is amended by striking ‘‘January 1, 2010’’ 
and inserting ‘‘January 1, 2011’’. 
(b) $500 LIMITATION.—Paragraph (1) of section 
165(h) is amended by striking ‘‘December 31, 2009’’ and 
inserting ‘‘December 31, 2010’’. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendment made by sub-
section (a) shall apply to federally declared disasters 
occurring after December 31, 2009. 
(2) $500 LIMITATION.—The amendment made by 
subsection (b) shall apply to taxable years beginning 
after December 31, 2009.
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SEC. 283. SPECIAL DEPRECIATION ALLOWANCE FOR QUALI-
FIED DISASTER PROPERTY. 
(a) 
IN
GENERAL.—Subclause 
(I) 
of 
section 
168(n)(2)(A)(ii) is amended by striking ‘‘January 1, 2010’’ 
and inserting ‘‘January 1, 2011’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to disasters occurring after December 31, 
2009. 
SEC. 284. NET OPERATING LOSSES ATTRIBUTABLE TO FED-
ERALLY DECLARED DISASTERS. 
(a) 
IN
GENERAL.—Subclause 
(I) 
of 
section 
172(j)(1)(A)(i) is amended by striking ‘‘January 1, 2010’’ 
and inserting ‘‘January 1, 2011’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to losses attributable to disasters occur-
ring after December 31, 2009. 
SEC. 285. EXPENSING OF QUALIFIED DISASTER EXPENSES. 
(a) IN
GENERAL.—Subparagraph (A) of section 
198A(b)(2) is amended by striking ‘‘January 1, 2010’’ and 
inserting ‘‘January 1, 2011’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to expenditures on account of disasters 
occurring after December 31, 2009.
•HR 4213 EAH1S 
SEC. 296. WORK OPPORTUNITY TAX CREDIT WITH RESPECT 
TO 
CERTAIN 
INDIVIDUALS 
AFFECTED 
BY 
HURRICANE KATRINA FOR EMPLOYERS IN-
SIDE DISASTER AREAS. 
(a) IN GENERAL.—Paragraph (1) of section 201(b) of 
the Katrina Emergency Tax Relief Act of 2005 is amended 
by striking ‘‘4-year’’ and inserting ‘‘5-year’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply to individuals hired after August 
27, 2009. 
SEC. 297. EXTENSION OF LOW-INCOME HOUSING CREDIT 
RULES FOR BUILDINGS IN GO ZONES. 
Section 1400N(c)(5) is amended by striking ‘‘January 
1, 2011’’ and inserting ‘‘January 1, 2013’’. 
TITLE III—PENSION PROVISIONS 
Subtitle A—Pension Funding Relief 
PART 1—SINGLE-EMPLOYER PLANS 
SEC. 301. EXTENDED PERIOD FOR SINGLE-EMPLOYER DE-
FINED BENEFIT PLANS TO AMORTIZE CER-
TAIN SHORTFALL AMORTIZATION BASES. 
(a) ERISA AMENDMENTS.— 
(1) IN GENERAL.—Section 303(c)(2) of the Em-
ployee Retirement Income Security Act of 1974 (29 
U.S.C. 1083(c)(2)) is amended by adding at the end 
the following subparagraphs: 
‘‘(D) SPECIAL RULE.—
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‘‘(i) IN GENERAL.—In the case of the 
shortfall amortization base of a plan for 
any applicable plan year, the shortfall am-
ortization installments are the amounts de-
scribed in clause (ii) or (iii), if made appli-
cable by an election under clause (iv). In 
the absence of a timely election, such in-
stallments shall be determined without re-
gard to this subparagraph. 
‘‘(ii) 2 PLUS 7 AMORTIZATION SCHED-
ULE.—The shortfall amortization install-
ments described in this clause are— 
‘‘(I) in the case of the first 2 plan 
years in the 9-plan-year period begin-
ning with the applicable plan year, in-
terest on the shortfall amortization 
base (determined by using the effective 
interest rate for the applicable plan 
year), and 
‘‘(II) in the case of the last 7 plan 
years in such 9-plan-year period, the 
amounts necessary to amortize the bal-
ance of such shortfall amortization 
base in level annual installments over 
such last 7 plan years (determined
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using the segment rates determined 
under subparagraph (C) of subsection 
(h)(2) for the applicable plan year, ap-
plied under rules similar to the rules of 
subparagraph (B) of subsection (h)(2)). 
‘‘(iii) 15-YEAR
AMORTIZATION.—The 
shortfall 
amortization 
installments 
de-
scribed in this clause are the amounts under 
subparagraphs (A) and (B) determined by 
substituting ‘15 plan-year period’ for ‘7- 
plan-year period’. 
‘‘(iv) ELECTION.— 
‘‘(I) 
IN
GENERAL.—The 
plan 
sponsor may, with respect to a plan, 
elect, with respect to any of not more 
than 2 applicable plan years, to deter-
mine shortfall amortization install-
ments under this subparagraph. An 
election under either clause (ii) or 
clause (iii) may be made with respect 
to either of such applicable plan years. 
‘‘(II) ELIGIBILITY
FOR
ELEC-
TION.—An election may be made to de-
termine shortfall amortization install-
ments under this subparagraph with
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respect to a plan only if, as of the date 
of the election— 
‘‘(aa) the plan sponsor is not 
a debtor in a case under title 11, 
United States Code, or similar 
Federal or State law, 
‘‘(bb) there are no unpaid 
minimum required contributions 
with respect to the plan for pur-
poses of section 4971 of the Inter-
nal Revenue Code of 1986, 
‘‘(cc) there is no lien in favor 
of the plan under subsection (k) or 
under section 430(k) of such Code, 
and 
‘‘(dd) a distress termination 
has not been initiated for the plan 
under section 4041(c). 
‘‘(III) RULES RELATING TO ELEC-
TION.—Such election shall be made at 
such times, and in such form and 
manner, as shall be prescribed by the 
Secretary of the Treasury and shall be 
irrevocable, except under such limited 
circumstances, and subject to such con-
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ditions, as such Secretary may pre-
scribe. 
‘‘(E) APPLICABLE PLAN YEAR.— 
‘‘(i) IN
GENERAL.—For purposes of 
this paragraph, the term ‘applicable plan 
year’ means, subject to the election of the 
plan sponsor under subparagraph (D)(iv), 
each of not more than 2 of the plan years 
beginning in 2008, 2009, 2010, or 2011. 
‘‘(ii) SPECIAL
RULE
RELATING
TO 
2008.—A plan year may be elected as an ap-
plicable plan year pursuant to this sub-
paragraph only if the due date under sub-
section (j)(1) for the payment of the min-
imum required contribution for such plan 
year occurs on or after March 10, 2010. 
‘‘(F) INCREASES IN SHORTFALL AMORTIZA-
TION INSTALLMENTS IN CASES OF EXCESS COM-
PENSATION OR CERTAIN DIVIDENDS OR STOCK 
REDEMPTIONS.— 
‘‘(i) IN GENERAL.—If, with respect to 
an election for an applicable plan year 
under subparagraph (D), there is an in-
stallment acceleration amount with respect 
to a plan for any plan year in the restric-
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tion period (or if there is an installment ac-
celeration amount carried forward to a 
plan year not in the restriction period), 
then the shortfall amortization installment 
otherwise determined and payable under 
this paragraph for such plan year shall be 
increased by such amount. 
‘‘(ii) BACK-END ADJUSTMENT TO AM-
ORTIZATION
SCHEDULE.—Subject to rules 
prescribed by the Secretary of the Treasury, 
if a shortfall amortization installment with 
respect to any shortfall amortization base 
for an applicable plan year is required to 
be increased for any plan year under clause 
(i), subsequent shortfall amortization in-
stallments with respect to such base shall be 
reduced, in reverse order of the otherwise re-
quired installments beginning with the final 
scheduled installment, to the extent nec-
essary to limit the present value of such 
subsequent shortfall amortization install-
ments (after application of this subpara-
graph) to the present value of the remaining 
unamortized shortfall amortization base.
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‘‘(iii) 
INSTALLMENT
ACCELERATION 
AMOUNT.—For purposes of this subpara-
graph— 
‘‘(I) IN GENERAL.—The term ‘in-
stallment acceleration amount’ means, 
with respect to any plan year in a re-
striction period with respect to an ap-
plicable plan year, the sum of— 
‘‘(aa) the aggregate amount 
of excess employee compensation 
determined under clause (iv) for 
the plan year, plus 
‘‘(bb) the dividend and re-
demption 
amount 
determined 
under clause (v) for the plan year. 
‘‘(II) CUMULATIVE LIMITATION.— 
The installment acceleration amount 
for any plan year shall not exceed the 
excess (if any) of— 
‘‘(aa) the sum of the shortfall 
amortization installments for the 
plan year and all preceding plan 
years in the amortization period 
elected under subparagraph (D) 
with respect to the shortfall amor-
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tization base with respect to an 
applicable year, determined with-
out regard to subparagraph (D) 
and this subparagraph, over 
‘‘(bb) the sum of the shortfall 
amortization installments for such 
plan year and all such preceding 
plan years, determined after ap-
plication of subparagraph (D) 
(and in the case of any preceding 
plan year, after application of 
this subparagraph). 
‘‘(III) CARRYOVER OF EXCESS IN-
STALLMENT
ACCELERATION 
AMOUNTS.— 
‘‘(aa) IN
GENERAL.—If the 
installment acceleration amount 
for any plan year (determined 
without regard to subclause (II)) 
exceeds the limitation under sub-
clause (II), then, subject to item 
(bb), such excess shall be treated 
as an installment acceleration 
amount for the succeeding plan 
year.
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‘‘(bb) CAP TO APPLY.—If any 
amount treated as an installment 
acceleration amount under item 
(aa) or this item with respect any 
succeeding plan year, when added 
to other installment acceleration 
amounts (determined without re-
gard to subclause (II)) with re-
spect to the plan year, exceeds the 
limitation under subclause (II), 
the portion of such amount rep-
resenting such excess shall be 
treated as an installment accelera-
tion amount with respect to the 
next succeeding plan year. 
‘‘(cc) LIMITATION ON YEARS 
TO
WHICH
AMOUNTS
CARRIED 
FORWARD.—No amount shall be 
carried forward under item (aa) 
or (bb) to a plan year which be-
gins after the last plan year in 
the restriction period (or after the 
second plan year following such 
last plan year in the case of an 
election year with respect to which
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15-year amortization was elected 
under subparagraph (D)(iii)). 
‘‘(dd) ORDERING
RULES.— 
For purposes of applying item 
(bb), 
installment 
acceleration 
amounts for the plan year (deter-
mined without regard to any car-
ryover under this clause) shall be 
applied first against the limita-
tion under subclause (II) and then 
carryovers to such plan year shall 
be applied against such limitation 
on a first-in, first-out basis. 
‘‘(iv) EXCESS
EMPLOYEE
COMPENSA-
TION.— 
‘‘(I) IN GENERAL.—For purposes 
of this paragraph, the term ‘excess em-
ployee compensation’ means the sum 
of— 
‘‘(aa) with respect to any 
employee, for any plan year, the 
excess (if any) of— 
‘‘(AA) 
the 
aggregate 
amount includible in income 
under chapter 1 of the Inter-
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nal Revenue Code of 1986 for 
remuneration during the cal-
endar year in which such 
plan year begins for services 
performed by the employee 
for the plan sponsor (whether 
or not performed during such 
calendar year), over 
‘‘(BB) $1,000,000, plus 
‘‘(bb) the amount of assets set 
aside or reserved (directly or indi-
rectly) in a trust (or other ar-
rangement as determined by the 
Secretary of the Treasury), or 
transferred to such a trust or 
other arrangement, during the 
calendar year by a plan sponsor 
for purposes of paying deferred 
compensation 
of 
an 
employee 
under a nonqualified deferred 
compensation plan (as defined in 
section 409A of such Code) of the 
plan sponsor.
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‘‘(II) NO DOUBLE COUNTING.—No 
amount shall be taken into account 
under subclause (I) more than once. 
‘‘(III) 
EMPLOYEE; 
REMUNERA-
TION.—For purposes of this clause, the 
term ‘employee’ includes, with respect 
to a calendar year, a self-employed in-
dividual who is treated as an employee 
under section 401(c) of the Internal 
Revenue Code of 1986 for the taxable 
year ending during such calendar 
year, and the term ‘remuneration’ 
shall include earned income of such an 
individual. 
‘‘(IV) CERTAIN PAYMENTS UNDER 
EXISTING CONTRACTS.—There shall not 
be taken into account under subclause 
(I)(aa) any remuneration consisting of 
nonqualified deferred compensation, re-
stricted stock (or restricted stock units), 
stock options, or stock appreciation 
rights payable or granted under a 
written binding contract that was in 
effect on March 1, 2010, and which
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was not modified in any material re-
spect before such remuneration is paid. 
‘‘(V) ONLY
REMUNERATION
FOR 
POST-2009 SERVICES COUNTED.—Remu-
neration shall be taken into account 
under subclause (I)(aa) only to the ex-
tent attributable to services performed 
by the employee for the plan sponsor 
after December 31, 2009. 
‘‘(VI) COMMISSIONS.— 
‘‘(aa) IN
GENERAL.—There 
shall not be taken into account 
under subclause (I)(aa) any re-
muneration payable on a commis-
sion basis solely on account of in-
come directly generated by the in-
dividual performance of the indi-
vidual to whom such remunera-
tion is payable. 
‘‘(bb) 
SPECIFIED
EMPLOY-
EES.—Item (aa) shall not apply 
in the case of any specified em-
ployee (within the meaning of sec-
tion 409A(a)(2)(B)(i) of the Inter-
nal Revenue Code of 1986) or any
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employee who would be such a 
specified employee if the plan 
sponsor were a corporation de-
scribed in such section. 
‘‘(VII) INDEXING OF AMOUNT.—In 
the case of any calendar year begin-
ning after 2010, the dollar amount 
under subclause (I)(aa)(BB) shall be 
increased by an amount equal to— 
‘‘(aa) such dollar amount, 
multiplied by 
‘‘(bb) the cost-of-living ad-
justment determined under section 
1(f)(3) of the Internal Revenue 
Code of 1986 for the calendar 
year, determined by substituting 
‘calendar year 2009’ for ‘calendar 
year 1992’ in subparagraph (B) 
thereof. 
If the amount of any increase under 
clause (i) is not a multiple of $20,000, 
such increase shall be rounded to the 
next lowest multiple of $20,000. 
‘‘(v) CERTAIN
DIVIDENDS
AND
RE-
DEMPTIONS.—
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‘‘(I) IN GENERAL.—The dividend 
and redemption amount determined 
under this clause for any plan year is 
the lesser of— 
‘‘(aa) the excess of— 
‘‘(AA) the sum of the 
dividends paid during the 
plan year by the plan spon-
sor, plus the amounts paid 
for the redemption of stock of 
the plan sponsor redeemed 
during the plan year, over 
‘‘(BB) an amount equal 
to the average of adjusted an-
nual net income of the plan 
sponsor for the last 5 fiscal 
years of the plan sponsor 
ending before such plan year, 
or 
‘‘(bb) the sum of— 
‘‘(AA) the amounts paid 
for the redemption of stock of 
the plan sponsor redeemed 
during the plan year, plus
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‘‘(BB) the excess of divi-
dends paid during the plan 
year by the plan sponsor over 
the dividend base amount. 
‘‘(II) DEFINITIONS.— 
‘‘(aa) 
ADJUSTED
ANNUAL 
NET
INCOME.—For purposes of 
subclause (I)(aa)(BB), the term 
‘adjusted annual net income’ with 
respect to any fiscal year means 
annual net income, determined in 
accordance with generally accept-
ed accounting principles (before 
after-tax gain or loss on any sale 
of assets), but without regard to 
any reduction by reason of depre-
ciation or amortization, except 
that in no event shall adjusted an-
nual net income for any fiscal 
year be less than zero. 
‘‘(bb) 
DIVIDEND
BASE 
AMOUNT.—For purposes of this 
clause, the term ‘dividend base 
amount’ means, with respect to a
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plan year, an amount equal to the 
greater of— 
‘‘(AA) the median of the 
amounts of the dividends 
paid during each of the last 
5 fiscal years of the plan 
sponsor ending before such 
plan year, or 
‘‘(BB) the amount of 
dividends paid during such 
plan year on preferred stock 
that was issued on or before 
May 21, 2010, or that is re-
placement stock for such pre-
ferred stock. 
‘‘(III) ONLY
CERTAIN
POST-2009 
DIVIDENDS AND REDEMPTIONS COUNT-
ED.—For purposes of subclause (I) 
(other than for purposes of calculating 
the dividend base amount), there shall 
only be taken into account dividends 
declared, and redemptions occurring, 
after February 28, 2010. 
‘‘(IV) EXCEPTION
FOR
INTRA- 
GROUP
DIVIDENDS.—Dividends paid
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by one member of a controlled group 
(as defined in section 302(d)(3)) to an-
other member of such group shall not 
be taken into account under subclause 
(I). 
‘‘(V) EXCEPTION FOR STOCK DIVI-
DENDS.—Any distribution by the plan 
sponsor to its shareholders of stock 
issued by the plan sponsor shall not be 
taken into account under subclause (I). 
‘‘(VI) EXCEPTION
FOR
CERTAIN 
REDEMPTIONS.—The 
following 
shall 
not be taken into account under sub-
clause (I): 
‘‘(aa) Redemptions of securi-
ties which, at the time of redemp-
tion, are not listed on an estab-
lished securities market and— 
‘‘(AA) are made pursu-
ant to a pension plan that is 
qualified under section 401 
of the Internal Revenue Code 
of 1986 or a shareholder-ap-
proved program, or
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‘‘(BB) are made on ac-
count of an employee’s termi-
nation of employment with 
the plan sponsor, or the 
death or disability of a 
shareholder. 
‘‘(bb) Redemptions of securi-
ties which are not, immediately 
after issuance, listed on an estab-
lished securities market and are, 
or had previously been— 
‘‘(AA) held, directly or 
indirectly, by, or for the ben-
efit of, the Federal Govern-
ment or a Federal reserve 
bank, or 
‘‘(BB) held by a na-
tional government (or a gov-
ernment-related 
entity 
of 
such a government) or an 
employee benefit plan if such 
shares are substantially iden-
tical to shares described in 
subitem (AA).
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‘‘(vi) 
OTHER
DEFINITIONS
AND 
RULES.—For purposes of this subpara-
graph— 
‘‘(I) PLAN
SPONSOR.—The term 
‘plan sponsor’ includes any member of 
the plan sponsor’s controlled group (as 
defined in section 302(d)(3)). 
‘‘(II) RESTRICTION PERIOD.—The 
term ‘restriction period’ means, with 
respect to any applicable plan year 
with respect to which an election is 
made under subparagraph (D)— 
‘‘(aa) except as provided in 
item (bb), the 3-year period begin-
ning with the applicable plan 
year (or, if later, the first plan 
year beginning after December 31, 
2009), or 
‘‘(bb) if the plan sponsor 
elects 15-year amortization for the 
shortfall amortization base for the 
applicable plan year, the 5-year 
period beginning with such plan 
year (or, if later, the first plan
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year beginning after December 31, 
2009). 
‘‘(III) ELECTIONS FOR MULTIPLE 
PLANS.—If a plan sponsor makes elec-
tions under subparagraph (D) with re-
spect to 2 or more plans, the Secretary 
of the Treasury shall provide rules for 
the application of this subparagraph to 
such plans, including rules for the rat-
able allocation of any installment ac-
celeration amount among such plans 
on the basis of each plan’s relative re-
duction in the plan’s shortfall amorti-
zation installment for the first plan 
year in the amortization period de-
scribed in clause (i) (determined with-
out regard to this subparagraph). 
‘‘(G) MERGERS
AND
ACQUISITIONS.—The 
Secretary of the Treasury shall prescribe rules 
for the application of subparagraphs (D) and 
(F) in any case where there is a merger or ac-
quisition involving a plan sponsor making the 
election under subparagraph (D). 
‘‘(H) REGULATIONS
AND
GUIDANCE.—The 
Secretary of the Treasury may prescribe such
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regulations and other guidance of general appli-
cability as such Secretary may determine nec-
essary to achieve the purposes of subparagraphs 
(D) and (F).’’. 
(2) NOTICE REQUIREMENT.—Section 204 of such 
Act (29 U.S.C. 1054) is amended— 
(A) by redesignating subsection (k) as sub-
section (l); and 
(B) by inserting after subsection (j) the fol-
lowing new subsection: 
‘‘(k) NOTICE IN CONNECTION WITH SHORTFALL AM-
ORTIZATION ELECTION.— 
‘‘(1) IN GENERAL.—Not later 30 days after the 
date of an election under clause (iv) of section 
303(c)(2)(D) in connection with a single-employer 
plan, the plan administrator shall provide notice of 
such election in accordance with this subsection to 
each plan participant and beneficiary, each labor or-
ganization representing such participants and bene-
ficiaries, and the Pension Benefit Guaranty Corpora-
tion. 
‘‘(2) MATTERS INCLUDED IN NOTICE.—Each no-
tice provided pursuant to this subsection shall set 
forth—
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‘‘(A) a statement that recently enacted legis-
lation permits employers to delay pension fund-
ing; 
‘‘(B) with respect to required contribu-
tions— 
‘‘(i) the amount of contributions that 
would have been required had the election 
not been made; 
‘‘(ii) the amount of the reduction in re-
quired contributions for the applicable plan 
year that occurs on account of the election; 
and 
‘‘(iii) the number of plan years to 
which such reduction will apply; 
‘‘(C) with respect to a plan’s funding status 
as of the end of the plan year preceding the ap-
plicable plan year— 
‘‘(i) the liabilities determined under 
section 4010(d)(1)(A); and 
‘‘(ii) the market value of assets of the 
plan; and 
‘‘(D) with respect to installment accelera-
tion 
amounts 
(as 
defined 
in 
section 
303(c)(2)(F)(iii)(I))—
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‘‘(i) 
an 
explanation 
of 
section 
303(c)(2)(F) (relating to increases in short-
fall amortization installments in cases of 
excess compensation or certain dividends or 
stock redemptions); and 
‘‘(ii) a statement that increases in re-
quired contributions may occur in the event 
of future payments of excess employee com-
pensation or certain share repurchasing or 
dividend activity and that subsequent no-
tices of any such payments or activity will 
be provided in the annual funding notice 
provided pursuant to section 101(f). 
‘‘(3) OTHER REQUIREMENTS.— 
‘‘(A) FORM.—The notice required by para-
graph (1) shall be written in a manner cal-
culated to be understood by the average plan 
participant. The Secretary of the Treasury shall 
prescribe a model notice that a plan adminis-
trator may use to satisfy the requirements of 
paragraph (1). 
‘‘(B) PROVISION
TO
DESIGNATED
PER-
SONS.—Any notice under paragraph (1) may be 
provided to a person designated, in writing, by
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the person to which it would otherwise be pro-
vided. 
‘‘(4) EFFECT OF EGREGIOUS FAILURE.— 
‘‘(A) IN GENERAL.—In the case of any egre-
gious failure to meet any requirement of this 
subsection with respect to any election, such elec-
tion shall be treated as having not been made. 
‘‘(B) EGREGIOUS FAILURE.—For purposes 
of subparagraph (A), there is an egregious fail-
ure to meet the requirements of this subsection if 
such failure is in the control of the plan sponsor 
and is— 
‘‘(i) an intentional failure (including 
any failure to promptly provide the re-
quired notice or information after the plan 
administrator discovers an unintentional 
failure to meet the requirements of this sub-
section), 
‘‘(ii) a failure to provide most of the 
participants and beneficiaries with most of 
the information they are entitled to receive 
under this subsection, or 
‘‘(iii) a failure which is determined to 
be egregious under regulations prescribed by 
the Secretary of the Treasury.
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‘‘(5) USE
OF
NEW
TECHNOLOGIES.—The Sec-
retary of the Treasury may, in consultation with the 
Secretary, by regulations or other guidance of general 
applicability, allow any notice under this subsection 
to be provided using new technologies.’’. 
(C) 
SUBSEQUENT
SUPPLEMENTAL
NO-
TICES.—Section 101(f)(2)(C) of such Act (29 
U.S.C. 1021(f)(2)(C)) is amended— 
(i) by striking ‘‘and’’ at the end of 
clause (i); 
(ii) by redesignating clause (ii) as 
clause (iii); and 
(iii) by inserting after clause (i) the 
following new clause: 
‘‘(ii) any excess employee compensation 
amounts and any dividends and redemp-
tions amounts determined under section 
303(c)(2)(F) for the preceding plan year 
with respect to the plan, and’’. 
(3) DISREGARD OF INSTALLMENT ACCELERATION 
AMOUNTS
IN
DETERMINING
QUARTERLY
CONTRIBU-
TIONS.—Section 303(j)(3) of such Act (29 U.S.C. 
1083(j)(3)) is amended by adding at the end the fol-
lowing new subparagraph:
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‘‘(F) DISREGARD OF INSTALLMENT ACCEL-
ERATION AMOUNTS.—Subparagraph (D) shall be 
applied without regard to any increase under 
subsection (c)(2)(F).’’. 
(4) 
CONFORMING
AMENDMENT.—Section 
303(c)(1) of such Act (29 U.S.C. 1083(c)(1)) is 
amended by striking ‘‘the shortfall amortization bases 
for such plan year and each of the 6 preceding plan 
years’’ and inserting ‘‘any shortfall amortization base 
which has not been fully amortized under this sub-
section’’. 
(b) IRC AMENDMENTS.— 
(1) IN GENERAL.—Section 430(c)(2) of the Inter-
nal Revenue Code of 1986 is amended by adding at 
the end the following subparagraphs: 
‘‘(D) SPECIAL RULE.— 
‘‘(i) IN GENERAL.—In the case of the 
shortfall amortization base of a plan for 
any applicable plan year, the shortfall am-
ortization installments are the amounts de-
scribed in clause (ii) or (iii), if made appli-
cable by an election under clause (iv). In 
the absence of a timely election, such in-
stallments shall be determined without re-
gard to this subparagraph.
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‘‘(ii) 2 PLUS 7 AMORTIZATION SCHED-
ULE.—The shortfall amortization install-
ments described in this clause are— 
‘‘(I) in the case of the first 2 plan 
years in the 9-plan-year period begin-
ning with the applicable plan year, in-
terest on the shortfall amortization 
base (determined by using the effective 
interest rate for the applicable plan 
year), and 
‘‘(II) in the case of the last 7 plan 
years in such 9-plan-year period, the 
amounts necessary to amortize the bal-
ance of such shortfall amortization 
base in level annual installments over 
such last 7 plan years (determined 
using the segment rates determined 
under subparagraph (C) of subsection 
(h)(2) for the applicable plan year, ap-
plied under rules similar to the rules of 
subparagraph (B) of subsection (h)(2)). 
‘‘(iii) 15-YEAR
AMORTIZATION.—The 
shortfall 
amortization 
installments 
de-
scribed in this clause are the amounts under 
subparagraphs (A) and (B) determined by
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substituting ‘15 plan-year period’ for ‘7- 
plan-year period’. 
‘‘(iv) ELECTION.— 
‘‘(I) 
IN
GENERAL.—The 
plan 
sponsor may, with respect to a plan, 
elect, with respect to any of not more 
than 2 applicable plan years, to deter-
mine shortfall amortization install-
ments under this subparagraph. An 
election under either clause (ii) or 
clause (iii) may be made with respect 
to either of such applicable plan years. 
‘‘(II) ELIGIBILITY
FOR
ELEC-
TION.—An election may be made to de-
termine shortfall amortization install-
ments under this subparagraph with 
respect to a plan only if, as of the date 
of the election— 
‘‘(aa) the plan sponsor is not 
a debtor in a case under title 11, 
United States Code, or similar 
Federal or State law, 
‘‘(bb) there are no unpaid 
minimum required contributions
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with respect to the plan for pur-
poses of section 4971, 
‘‘(cc) there is no lien in favor 
of the plan under subsection (k) or 
under section 303(k) of the Em-
ployee Retirement Income Secu-
rity Act of 1974, and 
‘‘(dd) a distress termination 
has not been initiated for the plan 
under section 4041(c) of such Act. 
‘‘(III) RULES RELATING TO ELEC-
TION.—Such election shall be made at 
such times, and in such form and 
manner, as shall be prescribed by the 
Secretary and shall be irrevocable, ex-
cept under such limited circumstances, 
and subject to such conditions, as the 
Secretary may prescribe. 
‘‘(E) APPLICABLE PLAN YEAR.— 
‘‘(i) IN
GENERAL.—For purposes of 
this paragraph, the term ‘applicable plan 
year’ means, subject to the election of the 
plan sponsor under subparagraph (D)(iv), 
each of not more than 2 of the plan years 
beginning in 2008, 2009, 2010, or 2011.
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‘‘(ii) SPECIAL
RULE
RELATING
TO 
2008.—A plan year may be elected as an ap-
plicable plan year pursuant to this sub-
paragraph only if the due date under sub-
section (j)(1) for the payment of the min-
imum required contribution for such plan 
year occurs on or after March 10, 2010. 
‘‘(F) INCREASES IN SHORTFALL AMORTIZA-
TION INSTALLMENTS IN CASES OF EXCESS COM-
PENSATION OR CERTAIN DIVIDENDS OR STOCK 
REDEMPTIONS.— 
‘‘(i) IN GENERAL.—If, with respect to 
an election for an applicable plan year 
under subparagraph (D), there is an in-
stallment acceleration amount with respect 
to a plan for any plan year in the restric-
tion period (or if there is an installment ac-
celeration amount carried forward to a 
plan year not in the restriction period), 
then the shortfall amortization installment 
otherwise determined and payable under 
this paragraph for such plan year shall be 
increased by such amount. 
‘‘(ii) BACK-END ADJUSTMENT TO AM-
ORTIZATION
SCHEDULE.—Subject to rules
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prescribed by the Secretary, if a shortfall 
amortization installment with respect to 
any shortfall amortization base for an ap-
plicable plan year is required to be in-
creased for any plan year under clause (i), 
subsequent shortfall amortization install-
ments with respect to such base shall be re-
duced, in reverse order of the otherwise re-
quired installments beginning with the final 
scheduled installment, to the extent nec-
essary to limit the present value of such 
subsequent shortfall amortization install-
ments (after application of this subpara-
graph) to the present value of the remaining 
unamortized shortfall amortization base. 
‘‘(iii) 
INSTALLMENT
ACCELERATION 
AMOUNT.—For purposes of this subpara-
graph— 
‘‘(I) IN GENERAL.—The term ‘in-
stallment acceleration amount’ means, 
with respect to any plan year in a re-
striction period with respect to an ap-
plicable plan year, the sum of— 
‘‘(aa) the aggregate amount 
of excess employee compensation
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determined under clause (iv) for 
the plan year, plus 
‘‘(bb) the dividend and re-
demption 
amount 
determined 
under clause (v) for the plan year. 
‘‘(II) CUMULATIVE LIMITATION.— 
The installment acceleration amount 
for any plan year shall not exceed the 
excess (if any) of— 
‘‘(aa) the sum of the shortfall 
amortization installments for the 
plan year and all preceding plan 
years in the amortization period 
elected under subparagraph (D) 
with respect to the shortfall amor-
tization base with respect to an 
applicable year, determined with-
out regard to subparagraph (D) 
and this subparagraph, over 
‘‘(bb) the sum of the shortfall 
amortization installments for such 
plan year and all such preceding 
plan years, determined after ap-
plication of subparagraph (D) 
(and in the case of any preceding
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plan year, after application of 
this subparagraph). 
‘‘(III) CARRYOVER OF EXCESS IN-
STALLMENT
ACCELERATION 
AMOUNTS.— 
‘‘(aa) IN
GENERAL.—If the 
installment acceleration amount 
for any plan year (determined 
without regard to subclause (II)) 
exceeds the limitation under sub-
clause (II), then, subject to item 
(bb), such excess shall be treated 
as an installment acceleration 
amount for the succeeding plan 
year. 
‘‘(bb) CAP TO APPLY.—If any 
amount treated as an installment 
acceleration amount under item 
(aa) or this item with respect any 
succeeding plan year, when added 
to other installment acceleration 
amounts (determined without re-
gard to subclause (II)) with re-
spect to the plan year, exceeds the 
limitation under subclause (II),
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the portion of such amount rep-
resenting such excess shall be 
treated as an installment accelera-
tion amount with respect to the 
next succeeding plan year. 
‘‘(cc) LIMITATION ON YEARS 
TO
WHICH
AMOUNTS
CARRIED 
FORWARD.—No amount shall be 
carried forward under item (aa) 
or (bb) to a plan year which be-
gins after the last plan year in 
the restriction period (or after the 
second plan year following such 
last plan year in the case of an 
election year with respect to which 
15-year amortization was elected 
under subparagraph (D)(iii)). 
‘‘(dd) ORDERING
RULES.— 
For purposes of applying item 
(bb), 
installment 
acceleration 
amounts for the plan year (deter-
mined without regard to any car-
ryover under this clause) shall be 
applied first against the limita-
tion under subclause (II) and then
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carryovers to such plan year shall 
be applied against such limitation 
on a first-in, first-out basis. 
‘‘(iv) EXCESS
EMPLOYEE
COMPENSA-
TION.— 
‘‘(I) IN GENERAL.—For purposes 
of this paragraph, the term ‘excess em-
ployee compensation’ means the sum 
of— 
‘‘(aa) with respect to any 
employee, for any plan year, the 
excess (if any) of— 
‘‘(AA) 
the 
aggregate 
amount includible in income 
under chapter 1 for remu-
neration during the calendar 
year in which such plan year 
begins for services performed 
by the employee for the plan 
sponsor (whether or not per-
formed during such calendar 
year), over 
‘‘(BB) $1,000,000, plus 
‘‘(bb) the amount of assets set 
aside or reserved (directly or indi-
•HR 4213 EAH1S 
rectly) in a trust (or other ar-
rangement as determined by the 
Secretary), or transferred to such 
a trust or other arrangement, dur-
ing the calendar year by a plan 
sponsor for purposes of paying de-
ferred compensation of an em-
ployee under a nonqualified de-
ferred compensation plan (as de-
fined in section 409A) of the plan 
sponsor. 
‘‘(II) NO DOUBLE COUNTING.—No 
amount shall be taken into account 
under subclause (I) more than once. 
‘‘(III) 
EMPLOYEE; 
REMUNERA-
TION.—For purposes of this clause, the 
term ‘employee’ includes, with respect 
to a calendar year, a self-employed in-
dividual who is treated as an employee 
under section 401(c) for the taxable 
year ending during such calendar 
year, and the term ‘remuneration’ 
shall include earned income of such an 
individual.
100 
•HR 4213 EAH1S 
‘‘(IV) CERTAIN PAYMENTS UNDER 
EXISTING CONTRACTS.—There shall not 
be taken into account under subclause 
(I) any remuneration consisting of 
nonqualified deferred compensation, re-
stricted stock (or restricted stock units), 
stock options, or stock appreciation 
rights payable or granted under a 
written binding contract that was in 
effect on March 1, 2010, and which 
was not modified in any material re-
spect before such remuneration is paid. 
‘‘(V) ONLY
REMUNERATION
FOR 
POST-2009 SERVICES COUNTED.—Remu-
neration shall be taken into account 
under subclause (I)(aa) only to the ex-
tent attributable to services performed 
by the employee for the plan sponsor 
after December 31, 2009. 
‘‘(VI) COMMISSIONS.— 
‘‘(aa) IN
GENERAL.—There 
shall not be taken into account 
under subclause (I)(aa) any re-
muneration payable on a commis-
sion basis solely on account of in-
102 
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1992’ in subparagraph (B) there-
of. 
If the amount of any increase under 
clause (i) is not a multiple of $20,000, 
such increase shall be rounded to the 
next lowest multiple of $20,000. 
‘‘(v) CERTAIN
DIVIDENDS
AND
RE-
DEMPTIONS.— 
‘‘(I) IN GENERAL.—The dividend 
and redemption amount determined 
under this clause for any plan year is 
the lesser of— 
‘‘(aa) the excess of— 
‘‘(AA) the sum of the 
dividends paid during the 
plan year by the plan spon-
sor, plus the amounts paid 
for the redemption of stock of 
the plan sponsor redeemed 
during the plan year, over 
‘‘(BB) an amount equal 
to the average of adjusted an-
nual net income of the plan 
sponsor for the last 5 fiscal 
years of the plan sponsor
103 
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ending before such plan year, 
or 
‘‘(bb) the sum of— 
‘‘(AA) the amounts paid 
for the redemption of stock of 
the plan sponsor redeemed 
during the plan year, plus 
‘‘(BB) the excess of divi-
dends paid during the plan 
year by the plan sponsor over 
the dividend base amount. 
‘‘(II) DEFINITIONS.— 
‘‘(aa) 
ADJUSTED
ANNUAL 
NET
INCOME.—For purposes of 
subclause (I)(aa)(BB), the term 
‘adjusted annual net income’ with 
respect to any fiscal year means 
annual net income, determined in 
accordance with generally accept-
ed accounting principles (before 
after-tax gain or loss on any sale 
of assets), but without regard to 
any reduction by reason of depre-
ciation or amortization, except 
that in no event shall adjusted an-
104 
•HR 4213 EAH1S 
nual net income for any fiscal 
year be less than zero. 
‘‘(bb) 
DIVIDEND
BASE 
AMOUNT.—For purposes of this 
clause, the term ‘dividend base 
amount’ means, with respect to a 
plan year, an amount equal to the 
greater of— 
‘‘(AA) the median of the 
amounts of the dividends 
paid during each of the last 
5 fiscal years of the plan 
sponsor ending before such 
plan year, or 
‘‘(BB) the amount of 
dividends paid during such 
plan year on preferred stock 
that was issued on or before 
May 21, 2010, or that is re-
placement stock for such pre-
ferred stock. 
‘‘(III) ONLY
CERTAIN
POST-2009 
DIVIDENDS AND REDEMPTIONS COUNT-
ED.—For purposes of subclause (I) 
(other than for purposes of calculating
105 
•HR 4213 EAH1S 
the dividend base amount), there shall 
only be taken into account dividends 
declared, and redemptions occurring, 
after February 28, 2010. 
‘‘(IV) EXCEPTION
FOR
INTRA- 
GROUP
DIVIDENDS.—Dividends paid 
by one member of a controlled group 
(as defined in section 412(d)(3)) to an-
other member of such group shall not 
be taken into account under subclause 
(I). 
‘‘(V) EXCEPTION FOR STOCK DIVI-
DENDS.—Any distribution by the plan 
sponsor to its shareholders of stock 
issued by the plan sponsor shall not be 
taken into account under subclause (I). 
‘‘(VI) EXCEPTION
FOR
CERTAIN 
REDEMPTIONS.—The 
following 
shall 
not be taken into account under sub-
clause (I): 
‘‘(aa) Redemptions of securi-
ties which, at the time of redemp-
tion, are not listed on an estab-
lished securities market and—
106 
•HR 4213 EAH1S 
‘‘(AA) are made pursu-
ant to a pension plan that is 
qualified under section 401 
or 
a 
shareholder-approved 
program, or 
‘‘(BB) are made on ac-
count of an employee’s termi-
nation of employment with 
the plan sponsor, or the 
death or disability of a 
shareholder. 
‘‘(bb) Redemptions of securi-
ties which are not, immediately 
after issuance, listed on an estab-
lished securities market and are, 
or had previously been— 
‘‘(AA) held, directly or 
indirectly, by, or for the ben-
efit of, the Federal Govern-
ment or a Federal reserve 
bank, or 
‘‘(BB) held by a na-
tional government (or a gov-
ernment-related 
entity 
of 
such a government) or an
107 
•HR 4213 EAH1S 
employee benefit plan if such 
shares are substantially iden-
tical to shares described in 
subitem (AA). 
‘‘(vi) 
OTHER
DEFINITIONS
AND 
RULES.—For purposes of this subpara-
graph— 
‘‘(I) PLAN
SPONSOR.—The term 
‘plan sponsor’ includes any group of 
which the plan sponsor is a member 
and which is treated as a single em-
ployer under subsection (b), (c), (m), 
or (o) of section 414. 
‘‘(II) RESTRICTION PERIOD.—The 
term ‘restriction period’ means, with 
respect to any applicable plan year 
with respect to which an election is 
made under subparagraph (D)— 
‘‘(aa) except as provided in 
item (bb), the 3-year period begin-
ning with the applicable plan 
year (or, if later, the first plan 
year beginning after December 31, 
2009), or
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‘‘(bb) if the plan sponsor 
elects 15-year amortization for the 
shortfall amortization base for the 
applicable plan year, the 5-year 
period beginning with such plan 
year (or, if later, the first plan 
year beginning after December 31, 
2009). 
‘‘(III) ELECTIONS FOR MULTIPLE 
PLANS.—If a plan sponsor makes elec-
tions under subparagraph (D) with re-
spect to 2 or more plans, the Secretary 
shall provide rules for the application 
of this subparagraph to such plans, in-
cluding rules for the ratable allocation 
of any installment acceleration amount 
among such plans on the basis of each 
plan’s relative reduction in the plan’s 
shortfall amortization installment for 
the first plan year in the amortization 
period described in clause (i) (deter-
mined without regard to this subpara-
graph). 
‘‘(G) MERGERS
AND
ACQUISITIONS.—The 
Secretary shall prescribe rules for the applica-
109 
•HR 4213 EAH1S 
tion of subparagraphs (D) and (F) in any case 
where there is a merger or acquisition involving 
a plan sponsor making the election under sub-
paragraph (D). 
‘‘(H) REGULATIONS
AND
GUIDANCE.—The 
Secretary may prescribe such regulations and 
other guidance of general applicability as the 
Secretary may determine necessary to achieve 
the purposes of subparagraphs (D) and (F).’’. 
(2) NOTICE REQUIREMENT.— 
(A) IN GENERAL.—Section 4980F of such 
Code is amended— 
(i) by striking ‘‘subsection (e)’’ each 
place it appears in subsection (a) and para-
graphs (1) and (3) of subsection (c) and in-
serting ‘‘subsections (e) and (f)’’; 
(ii) by striking ‘‘subsection (e)’’ in sub-
section (c)(2)(A) and inserting ‘‘subsection 
(e), (f), or both, as the case may be’’; and 
(iii) by redesignating subsection (f) as 
subsection (g) and by inserting after sub-
section (e) the following new subsection: 
‘‘(f) NOTICE IN CONNECTION WITH SHORTFALL AMOR-
TIZATION ELECTION.—
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•HR 4213 EAH1S 
‘‘(1) IN GENERAL.—Not later 30 days after the 
date of an election under clause (iv) of section 
430(c)(2)(D) in connection with a plan, the plan ad-
ministrator shall provide notice of such election in ac-
cordance with this subsection to each plan partici-
pant and beneficiary, each labor organization rep-
resenting such participants and beneficiaries, and the 
Pension Benefit Guaranty Corporation. 
‘‘(2) MATTERS INCLUDED IN NOTICE.—Each no-
tice provided pursuant to this subsection shall set 
forth— 
‘‘(A) a statement that recently enacted legis-
lation permits employers to delay pension fund-
ing; 
‘‘(B) with respect to required contribu-
tions— 
‘‘(i) the amount of contributions that 
would have been required had the election 
not been made; 
‘‘(ii) the amount of the reduction in re-
quired contributions for the applicable plan 
year that occurs on account of the election; 
and 
‘‘(iii) the number of plan years to 
which such reduction will apply;
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‘‘(C) with respect to a plan’s funding status 
as of the end of the plan year preceding the ap-
plicable plan year— 
‘‘(i) the liabilities determined under 
section 4010(d)(1)(A) of the Employee Re-
tirement Income Security Act of 1974; and 
‘‘(ii) the market value of assets of the 
plan; and 
‘‘(D) with respect to installment accelera-
tion 
amounts 
(as 
defined 
in 
section 
430(c)(2)(F)(iii)(I))— 
‘‘(i) 
an 
explanation 
of 
section 
430(c)(2)(F) (relating to increases in short-
fall amortization installments in cases of 
excess compensation or certain dividends or 
stock redemptions); and 
‘‘(ii) a statement that increases in re-
quired contributions may occur in the event 
of future payments of excess employee com-
pensation or certain share repurchasing or 
dividend activity and that subsequent no-
tices of any such payments or activity will 
be provided in the annual funding notice 
provided pursuant to section 101(f) of the
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Employee Retirement Income Security Act 
of 1974. 
‘‘(3) OTHER REQUIREMENTS.— 
‘‘(A) FORM.—The notice required by para-
graph (1) shall be written in a manner cal-
culated to be understood by the average plan 
participant and shall provide sufficient informa-
tion (as determined in accordance with regula-
tions or other guidance of general applicability 
prescribed by the Secretary) to allow plan par-
ticipants and beneficiaries to understand the ef-
fect of the election. The Secretary shall prescribe 
a model notice that a plan administrator may 
use to satisfy the requirements of paragraph (1). 
‘‘(B) PROVISION
TO
DESIGNATED
PER-
SONS.—Any notice under paragraph (1) may be 
provided to a person designated, in writing, by 
the person to which it would otherwise be pro-
vided.’’. 
(B) CONFORMING AMENDMENT.—Subsection 
(g) of section 4980F of such Code is amended by 
inserting ‘‘or (f)’’ after ‘‘subsection (e)’’. 
(3) DISREGARD OF INSTALLMENT ACCELERATION 
AMOUNTS
IN
DETERMINING
QUARTERLY
CONTRIBU-
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•HR 4213 EAH1S 
TIONS.—Section 430(j)(3) of such Code is amended by 
adding at the end the following new subparagraph: 
‘‘(F) DISREGARD OF INSTALLMENT ACCEL-
ERATION AMOUNTS.—Subparagraph (D) shall be 
applied without regard to any increase under 
subsection (c)(2)(F).’’. 
(4) CONFORMING AMENDMENT.—Paragraph (1) 
of section 430(c) of such Code is amended by striking 
‘‘the shortfall amortization bases for such plan year 
and each of the 6 preceding plan years’’ and inserting 
‘‘any shortfall amortization base which has not been 
fully amortized under this subsection’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to plan years beginning after December 
31, 2007. 
SEC. 302. APPLICATION OF EXTENDED AMORTIZATION PE-
RIOD TO PLANS SUBJECT TO PRIOR LAW 
FUNDING RULES. 
(a) IN GENERAL.—Title I of the Pension Protection 
Act of 2006 is amended by redesignating section 107 as sec-
tion 108 and by inserting the following after section 106: 
‘‘SEC. 107. APPLICATION OF FUNDING RELIEF TO PLANS 
WITH DELAYED EFFECTIVE DATE. 
‘‘(a) ALTERNATIVE ELECTIONS.—
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‘‘(1) IN
GENERAL.—Subject to this section, a 
plan sponsor of a plan to which section 104, 105, or 
106 of this Act applies may either elect the applica-
tion of subsection (b) with respect to the plan for not 
more than 2 applicable plan years or elect the appli-
cation of subsection (c) with respect to the plan for 
1 applicable plan year. 
‘‘(2) ELIGIBILITY FOR ELECTIONS.—An election 
may be made by a plan sponsor under paragraph (1) 
with respect to a plan only if at the time of the elec-
tion— 
‘‘(A) the plan sponsor is not a debtor in a 
case under title 11, United States Code, or simi-
lar Federal or State law, 
‘‘(B) there are no accumulated funding defi-
ciencies (as defined in section 302(a)(2) of the 
Employee Retirement Income Security Act of 
1974 (as in effect immediately before the enact-
ment of this Act) or in section 412(a) of the In-
ternal Revenue Code of 1986 (as so in effect)) 
with respect to the plan, 
‘‘(C) there is no lien in favor of the plan 
under section 302(d) (as so in effect) or under 
section 412(n) of such Code (as so in effect), and
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•HR 4213 EAH1S 
‘‘(D) a distress termination has not been 
initiated for the plan under section 4041(c) of 
the Employee Retirement Income Security Act of 
1974. 
‘‘(b) ALTERNATIVE ADDITIONAL FUNDING CHARGE.— 
If the plan sponsor elects the application of this subsection 
with respect to the plan, for purposes of applying section 
302(d) of the Employee Retirement Income Security Act of 
1974 (as in effect before the amendments made by this sub-
title and subtitle B) and section 412(l) of the Internal Rev-
enue Code of 1986 (as so in effect)— 
‘‘(1) the deficit reduction contribution under 
paragraph (2) of such section 302(d) and paragraph 
(2) of such section 412(l) for such plan for any appli-
cable plan year, shall be zero, and 
‘‘(2) the additional funding charge under para-
graph (1) of such section 302(d) and paragraph (1) 
of such section 412(l) for such plan for any applicable 
plan year shall be increased by an amount equal to 
the installment acceleration amount (as defined in 
sections 303(c)(2)(F)(iii)(I) of such Act (as amended 
by the American Jobs and Closing Tax Loopholes Act 
of 2010) and 430(c)(2)(F)(iii)(I) of such Code (as so 
amended)) with respect to the plan sponsor for such 
plan year, determined by treating the later of such
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•HR 4213 EAH1S 
plan year or the first plan year beginning after De-
cember 31, 2009, as the restriction period. 
‘‘(c) APPLICATION OF 15-YEAR AMORTIZATION.—If the 
plan sponsor elects the application of this subsection with 
respect to the plan, for purposes of applying section 302(d) 
of such Act (as in effect before the amendments made by 
this subtitle and subtitle B) and section 412(l) of such Code 
(as so in effect)— 
‘‘(1) in the case of the increased unfunded new 
liability of the plan, the applicable percentage de-
scribed in paragraph (4)(C) of such section 302(d) 
and paragraph (4)(C) of such section 412(l) for any 
pre-effective date plan year beginning with or after 
the applicable plan year shall be the ratio of— 
‘‘(A) the annual installments payable in 
each plan year if the increased unfunded new li-
ability for such plan year were amortized in 
equal installments over the period beginning 
with such plan year and ending with the last 
plan year in the period of 15 plan years begin-
ning with the applicable plan year, using an in-
terest rate equal to the third segment rate de-
scribed in sections 104(b), 105(b), and 106(b) of 
this Act, to
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•HR 4213 EAH1S 
‘‘(B) the increased unfunded new liability 
for such plan year, 
‘‘(2) in the case of the excess of the unfunded new 
liability over the increased unfunded new liability, 
such applicable percentage shall be determined with-
out regard to this section, and 
‘‘(3) the additional funding charge with respect 
to the plan for a plan year shall be increased by an 
amount equal to the installment acceleration amount 
(as defined in section 303(c)(2)(F)(iii) of such Act (as 
amended by the American Jobs and Closing Tax 
Loopholes Act of 2010 and section 430(c)(2)(F)(iii) of 
such Code (as so amended)) with respect to the plan 
sponsor for such plan year, determined without re-
gard 
to 
subclause 
(II) 
of 
such 
sections 
303(c)(2)(F)(iii) and 430(c)(2)(F)(iii). 
‘‘(d) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
‘‘(1) APPLICABLE PLAN YEAR.— 
‘‘(A) IN
GENERAL.—The term ‘applicable 
plan year’ with respect to a plan means, subject 
to the election of the plan sponsor under sub-
section (a), a plan year beginning in 2009, 2010, 
or 2011. 
‘‘(B) ELECTION.—
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•HR 4213 EAH1S 
‘‘(i) IN
GENERAL.—The election de-
scribed in subsection (a) shall be made at 
such times, and in such form and manner, 
as shall be prescribed by the Secretary of the 
Treasury. 
‘‘(ii) REDUCTION IN YEARS WHICH MAY 
BE
ELECTED.—The number of applicable 
plan years for which an election may be 
made under section 303(c)(2)(D) of the Em-
ployee Retirement Income Security Act of 
1974 (as amended by the American Jobs 
and Closing Tax Loopholes Act of 2010) or 
section 430(c)(2)(D) of the Internal Revenue 
Code of 1986 (as so amended) shall be re-
duced by the number of applicable plan 
years for which an election under this sec-
tion is made. 
‘‘(C) ALLOCATION OF INSTALLMENT ACCEL-
ERATION
AMOUNT
FOR
MULTIPLE
PLAN
ELEC-
TION.—In the case of an election under this sec-
tion with respect to 2 or more plans by the same 
plan 
sponsor, 
the 
installment 
acceleration 
amount shall be apportioned ratably with respect 
to such plans in proportion to the deficit reduc-
119 
•HR 4213 EAH1S 
tion contributions of the plans determined with-
out regard to subsection (b)(1). 
‘‘(2) PLAN SPONSOR.—The term ‘plan sponsor’ 
shall have the meaning provided such term in section 
303(c)(2)(F)(vi)(I) of the Employee Retirement In-
come Security Act of 1974 (as amended by the Amer-
ican Jobs and Closing Tax Loopholes Act of 2010) 
and section 430(c)(2)(F)(vi)(I) of the Internal Rev-
enue Code of 1986 (as so amended). 
‘‘(3) PRE-EFFECTIVE
DATE
PLAN
YEAR.—The 
term ‘pre-effective date plan year’ means, with respect 
to a plan, any plan year prior to the first year in 
which the amendments made by this subtitle and sub-
title B apply to the plan. 
‘‘(4) INCREASED UNFUNDED NEW LIABILITY.— 
The term ‘increased unfunded new liability’ means, 
with respect to a year, the excess (if any) of the un-
funded new liability over the amount of unfunded 
new liability determined as if the value of the plan’s 
assets determined under subsection 302(c)(2) of such 
Act (as in effect before the amendments made by this 
subtitle and subtitle B) and section 412(c)(2) of such 
Code (as so in effect) equaled the product of the cur-
rent liability of the plan for the year multiplied by 
the funded current liability percentage (as defined in
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•HR 4213 EAH1S 
section 302(d)(8)(B) of such Act (as so in effect) and 
412(l)(8)(B) of such Code (as so in effect)) of the plan 
for the second plan year preceding the first applicable 
plan year of such plan for which an election under 
this section is made. 
‘‘(5) OTHER DEFINITIONS.—The terms ‘unfunded 
new liability’ and ‘current liability’ shall have the 
meanings set forth in section 302(d) of such Act (as 
so in effect) and section 412(l) of such Code (as so in 
effect). 
‘‘(6) ADDITIONAL
FUNDING
CHARGE
INCREASE 
NOT TO EXCEED RELIEF.— 
‘‘(A) ELECTION UNDER SUBSECTION (B).— 
In the case of an election under subsection (b), 
an increase resulting from the application of 
subsection (b)(2) in the additional funding 
charge with respect to a plan for a plan year 
shall not exceed the excess (if any) of— 
‘‘(i) the deficit reduction contribution 
under section 302(d)(2) of such Act (as so 
in effect) and section 412(l)(2) of such Code 
(as so in effect) for such plan year, deter-
mined as if the election had not been made, 
over
121 
•HR 4213 EAH1S 
‘‘(ii) the deficit reduction contribution 
under such sections for such plan (deter-
mined without regard to any increase under 
subsection (b)(2)). 
‘‘(B) ELECTION UNDER SUBSECTION (C).— 
An increase resulting from the application of 
subsection (c)(3) in the additional funding 
charge with respect to a plan for a plan year 
shall not exceed the excess (if any) of— 
‘‘(i) the sum of the deficit reduction 
contributions under section 302(d)(2) of 
such Act (as so in effect) and section 
412(l)(2) of such Code (as so in effect) for 
such plan for such plan year and for all 
preceding plan years beginning with or 
after the applicable plan year, determined 
as if the election had not been made, over 
‘‘(ii) the sum of the deficit reduction 
contributions under such sections for such 
plan years (determined without regard to 
any increase under subsection (c)(3)). 
‘‘(e) NOTICE.—Not later 30 days after the date of an 
election under subsection (a) in connection with a plan, the 
plan administrator shall provide notice pursuant to, and 
subject to, rules similar to the rules of sections 204(k) of
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•HR 4213 EAH1S 
the Employee Retirement Income Security Act of 1974 (as 
amended by the American Jobs and Closing Tax Loopholes 
Act of 2010) and 4980F(f) of the Internal Revenue Code 
of 1986 (as so amended).’’. 
(b) ELIGIBLE CHARITY PLANS.—Section 104 of such 
Act is amended— 
(1) by striking ‘‘eligible cooperative plan’’ wher-
ever it appears in subsections (a) and (b) and insert-
ing ‘‘eligible cooperative plan or an eligible charity 
plan’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(d) ELIGIBLE CHARITY PLAN DEFINED.—For pur-
poses of this section, a plan shall be treated as an eligible 
charity plan for a plan year if— 
‘‘(1) the plan is maintained by one or more em-
ployers employing employees who are accruing bene-
fits based on service for the plan year, 
‘‘(2) such employees are employed in at least 20 
States, 
‘‘(3) each such employee (other than a de mini-
mis number of employees) is employed by an em-
ployer described in section 501(c)(3) of such Code and 
the primary exempt purpose of each such employer is 
to provide services with respect to children, and
123 
•HR 4213 EAH1S 
‘‘(4) the plan sponsor elects (at such time and in 
such form and manner as shall be prescribed by the 
Secretary of the Treasury) to be so treated. 
Any election under this subsection may be revoked only with 
the consent of the Secretary of the Treasury.’’. 
(c) REGULATIONS.—The Secretary of the Treasury 
may prescribe such regulations as may be necessary to 
carry out the purposes of the amendments made by this sec-
tion. 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendment made by sub-
section (a) shall apply to plan years beginning on or 
after January 1, 2009. 
(2) ELIGIBLE
CHARITY
PLANS.—The amend-
ments made by subsection (b) shall apply to plan 
years beginning after December 31, 2009. 
SEC. 303. SUSPENSION OF CERTAIN FUNDING LEVEL LIMI-
TATIONS. 
(a) LIMITATIONS
ON BENEFIT ACCRUALS.—Section 
203 of the Worker, Retiree, and Employer Recovery Act of 
2008 (Public Law 110–458; 122 Stat. 5118) is amended— 
(1) by striking ‘‘the first plan year beginning 
during the period beginning on October 1, 2008, and 
ending on September 30, 2009’’ and inserting ‘‘any
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•HR 4213 EAH1S 
plan year beginning during the period beginning on 
October 1, 2008, and ending on December 31, 2011’’; 
(2) by striking ‘‘substituting’’ and all that fol-
lows through ‘‘for such plan year’’ and inserting 
‘‘substituting for such percentage the plan’s adjusted 
funding target attainment percentage for the last plan 
year ending before September 30, 2009,’’; and 
(3) by striking ‘‘for the preceding plan year is 
greater’’ and inserting ‘‘for such last plan year is 
greater’’. 
(b) SOCIAL SECURITY LEVEL-INCOME OPTIONS.— 
(1) ERISA AMENDMENT.—Section 206(g)(3)(E) 
of the Employee Retirement Income Security Act of 
1974 is amended by adding at the end the following 
new sentence: ‘‘For purposes of applying clause (i) in 
the case of payments the annuity starting date for 
which occurs on or before December 31, 2011, pay-
ments under a social security leveling option shall be 
treated as not in excess of the monthly amount paid 
under a single life annuity (plus an amount not in 
excess of a social security supplement described in the 
last sentence of section 204(b)(1)(G)).’’. 
(2) IRC AMENDMENT.—Section 436(d)(5) of the 
Internal Revenue Code of 1986 is amended by adding 
at the end the following new sentence: ‘‘For purposes
125 
•HR 4213 EAH1S 
of applying subparagraph (A) in the case of pay-
ments the annuity starting date for which occurs on 
or before December 31, 2011, payments under a social 
security leveling option shall be treated as not in ex-
cess of the monthly amount paid under a single life 
annuity (plus an amount not in excess of a social se-
curity supplement described in the last sentence of 
section 411(a)(9)).’’. 
(3) EFFECTIVE DATE.— 
(A) IN GENERAL.—The amendments made 
by this subsection shall apply to annuity pay-
ments the annuity starting date for which occurs 
on or after January 1, 2011. 
(B) PERMITTED
APPLICATION.—A plan 
shall not be treated as failing to meet the re-
quirements of sections 206(g) of the Employee 
Retirement Income Security Act of 1974 (as 
amended by this subsection) and section 436(d) 
of the Internal Revenue Code of 1986 (as so 
amended) if the plan sponsor elects to apply the 
amendments made by this subsection to pay-
ments the annuity starting date for which occurs 
on or after the date of the enactment of this Act 
and before January 1, 2011.
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•HR 4213 EAH1S 
(c) APPLICATION OF CREDIT BALANCE WITH RESPECT 
TO LIMITATIONS ON SHUTDOWN BENEFITS AND UNPRE-
DICTABLE CONTINGENT EVENT BENEFITS.—With respect to 
plan years beginning on or before December 31, 2011, in 
applying paragraph (5)(C) of subsection (g) of section 206 
of the Employee Retirement Income Security Act of 1974 
and subsection (f)(3) of section 436 of the Internal Revenue 
Code of 1986 in the case of unpredictable contingent events 
(within the meaning of section 206(g)(1)(C) of such Act and 
section 436(b)(3) of such Code) occurring on or after Janu-
ary 1, 2010, the references, in clause (i) of such paragraph 
(5)(C) and subparagraph (A) of such subsection (f)(3), to 
paragraph (1)(B) of such subsection (g) and subsection 
(b)(2) of such section 436 shall be disregarded. 
SEC. 304. LOOKBACK FOR CREDIT BALANCE RULE. 
(a) AMENDMENT TO ERISA.—Paragraph (3) of section 
303(f) of the Employee Retirement Income Security Act of 
1974 is amended by adding the following at the end thereof: 
‘‘(D) SPECIAL
RULE
FOR
CERTAIN
PLAN 
YEARS.— 
‘‘(i) IN GENERAL.—For purposes of ap-
plying subparagraph (C) for plan years be-
ginning after June 30, 2009, and on or be-
fore December 31, 2011, the ratio deter-
127 
•HR 4213 EAH1S 
mined under such subparagraph for the pre-
ceding plan year shall be the greater of— 
‘‘(I) such ratio, as determined 
without regard to this subparagraph, 
or 
‘‘(II) the ratio for such plan for 
the plan year beginning after June 30, 
2007, and on or before June 30, 2008, 
as determined under rules prescribed 
by the Secretary of the Treasury. 
‘‘(ii) SPECIAL RULE.—In the case of a 
plan for which the valuation date is not the 
first day of the plan year— 
‘‘(I) clause (i) shall apply to plan 
years beginning after December 31, 
2008, and on or before December 31, 
2010, and 
‘‘(II) clause (i)(II) shall apply 
based on the last plan year beginning 
before July 1, 2007, as determined 
under rules prescribed by the Secretary 
of the Treasury.’’. 
(b) AMENDMENT TO INTERNAL REVENUE CODE OF 
1986.—Paragraph (3) of section 430(f) of the Internal Rev-
128 
•HR 4213 EAH1S 
enue Code of 1986 is amended by adding the following at 
the end thereof: 
‘‘(D) SPECIAL
RULE
FOR
CERTAIN
PLAN 
YEARS.— 
‘‘(i) IN GENERAL.—For purposes of ap-
plying subparagraph (C) for plan years be-
ginning after June 30, 2009, and on or be-
fore December 31, 2011, the ratio deter-
mined under such subparagraph for the pre-
ceding plan year shall be the greater of— 
‘‘(I) such ratio, as determined 
without regard to this subparagraph, 
or 
‘‘(II) the ratio for such plan for 
the plan year beginning after June 30, 
2007, and on or before June 30, 2008, 
as determined under rules prescribed 
by the Secretary. 
‘‘(ii) SPECIAL RULE.—In the case of a 
plan for which the valuation date is not the 
first day of the plan year— 
‘‘(I) clause (i) shall apply to plan 
years beginning after December 31, 
2008, and on or before December 31, 
2010, and
129 
•HR 4213 EAH1S 
‘‘(II) clause (i)(II) shall apply 
based on the last plan year beginning 
before July 1, 2007, as determined 
under rules prescribed by the Sec-
retary.’’. 
SEC. 305. INFORMATION REPORTING. 
(a) IN GENERAL.—Section 4010(b) of the Employee 
Retirement Security Act of 1974 (29 U.S.C. 1310(b)) is 
amended by striking paragraph (1) and inserting the fol-
lowing: 
‘‘(1) either of the following requirements are met: 
‘‘(A) the funding target attainment percent-
age (as defined in subsection (d)(2)(B)) at the 
end of the preceding plan year of a plan main-
tained by the contributing sponsor or any mem-
ber of its controlled group is less than 80 per-
cent; or 
‘‘(B) the aggregate unfunded vested benefits 
(as determined under section 4006(a)(3)(E)(iii)) 
of plans maintained by the contributing sponsor 
and the members of its controlled group exceed 
$75,000,000 (disregarding plans with no un-
funded vested benefits);’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to years beginning after 2009.
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•HR 4213 EAH1S 
SEC. 306. 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-
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
131 
•HR 4213 EAH1S 
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-
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, 
2011).
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(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.— 
(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
133 
•HR 4213 EAH1S 
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 
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-
134 
•HR 4213 EAH1S 
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-
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. 
PART 2—MULTIEMPLOYER PLANS 
SEC. 311. OPTIONAL USE OF 30-YEAR AMORTIZATION PERI-
ODS. 
(a) ELECTIVE SPECIAL RELIEF RULES.— 
(1) ERISA AMENDMENT.—Section 304(b) of the 
Employee Retirement Income Security Act of 1974 is
135 
•HR 4213 EAH1S 
amended by adding at the end the following new 
paragraph: 
‘‘(8) ELECTIVE SPECIAL RELIEF RULES.—Not-
withstanding any other provision of this subsection— 
‘‘(A) AMORTIZATION OF NET INVESTMENT 
LOSSES.— 
‘‘(i) IN GENERAL.—The plan sponsor 
of a multiemployer plan with respect to 
which the solvency test under subparagraph 
(B) is met may elect to treat the portion of 
any experience loss or gain for a plan year 
that is attributable to the allocable portion 
of the net investment losses incurred in ei-
ther or both of the first two plan years end-
ing on or after June 30, 2008, as an experi-
ence loss separate from other experience 
losses or gains to be amortized in equal an-
nual installments (until fully amortized) 
over the period— 
‘‘(I) beginning with the plan year 
for which the allocable portion is deter-
mined, and 
‘‘(II) ending with the last plan 
year in the 30-plan year period begin-
ning with the plan year following the
136 
•HR 4213 EAH1S 
plan year in which such net invest-
ment loss was incurred. 
‘‘(ii) COORDINATION
WITH
EXTEN-
SIONS.—If an election is made under clause 
(i) for any plan year— 
‘‘(I) no extension of the amortiza-
tion period under clause (i) shall be al-
lowed under subsection (d), and 
‘‘(II) if an extension was granted 
under subsection (d) for any plan year 
before the plan year for which the elec-
tion under this subparagraph is made, 
such extension shall not result in such 
amortization 
period 
exceeding 
years. 
‘‘(iii) DEFINITIONS AND RULES.—For 
purposes of this subparagraph— 
‘‘(I) NET INVESTMENT LOSSES.— 
‘‘(aa) IN GENERAL.—The net 
investment loss incurred by a 
plan in a plan year is equal to 
the excess of— 
‘‘(AA) the expected value 
of the assets as of the end of 
the plan year, over
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•HR 4213 EAH1S 
‘‘(BB) the market value 
of the assets as of the end of 
the plan year, 
including any difference attrib-
utable to a criminally fraudulent 
investment arrangement. 
‘‘(bb) EXPECTED
VALUE.— 
For purposes of item (aa), the ex-
pected value of the assets as of the 
end of a plan year is the excess 
of— 
‘‘(AA) the market value 
of the assets at the beginning 
of the plan year plus con-
tributions made during the 
plan year, over 
‘‘(BB) 
disbursements 
made during the plan year. 
The 
amounts 
described 
in 
subitems (AA) and (BB) shall be 
adjusted with interest at the valu-
ation rate to the end of the plan 
year. 
‘‘(II) CRIMINALLY
FRAUDULENT 
INVESTMENT ARRANGEMENTS.—The de-
138 
•HR 4213 EAH1S 
termination as to whether an arrange-
ment is a criminally fraudulent invest-
ment arrangement shall be made under 
rules substantially similar to the rules 
prescribed by the Secretary of the 
Treasury for purposes of section 165 of 
the Internal Revenue Code of 1986. 
‘‘(III) AMOUNT ATTRIBUTABLE TO 
ALLOCABLE PORTION OF NET INVEST-
MENT LOSS.—The amount attributable 
to the allocable portion of the net in-
vestment loss for a plan year shall be 
an amount equal to the allocable por-
tion of net investment loss for the plan 
year under subclauses (IV) and (V), in-
creased with interest at the valuation 
rate determined from the plan year 
after the plan year in which the net 
investment loss was incurred. 
‘‘(IV) ALLOCABLE
PORTION
OF 
NET INVESTMENT LOSSES.—Except as 
provided in subclause (V), the net in-
vestment loss incurred in a plan year 
shall be allocated among the 5 plan 
years following the plan year in which
139 
•HR 4213 EAH1S 
the investment loss is incurred in ac-
cordance with the following table: 
‘‘Plan year after the plan year in 
which the net investment loss 
Allocable portion of net 
was incurred 
investment loss 
1st ............................................................................................
1⁄2 
2nd ...........................................................................................
3rd ...........................................................................................
1⁄6 
4th ............................................................................................
1⁄6 
5th ............................................................................................
1⁄6 
‘‘(V) SPECIAL
RULE
FOR
PLANS 
THAT ADOPT LONGER SMOOTHER PE-
RIOD.—If a plan sponsor elects an ex-
tended smoothing period for its asset 
valuation method under subsection 
(c)(2)(B), then the allocable portion of 
net investment loss for the first two 
plan years following the plan year the 
investment loss is incurred is the same 
as determined under subclause (IV), 
but the remaining 1⁄2 of the net invest-
ment loss is allocated ratably over the 
period beginning with the third plan 
year following the plan year the net 
investment loss is incurred and ending 
with the last plan year in the extended 
smoothing period. 
‘‘(VI) SPECIAL RULE FOR OVER-
STATEMENT OF LOSS.—If, for a plan 
year, there is an experience loss for the
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•HR 4213 EAH1S 
plan and the amount described in sub-
clause (III) exceeds the total amount of 
the experience loss for the plan year, 
then the excess shall be treated as an 
experience gain. 
‘‘(VII) SPECIAL RULE IN YEARS 
FOR WHICH OVERALL EXPERIENCE IS 
GAIN.—If, for a plan year, there is no 
experience loss for the plan, then, in 
addition to amortization of net invest-
ment losses under clause (i), the 
amount described in subclause (III) 
shall be treated as an experience gain 
in addition to any other experience 
gain. 
‘‘(B) SOLVENCY TEST.— 
‘‘(i) IN GENERAL.—An election may be 
made under this paragraph if the election 
includes certification by the plan actuary 
in connection with the election that the plan 
is projected to have a funded percentage at 
the end of the first 15 plan years that is not 
less than 100 percent of the funded percent-
age for the plan year of the election.
141 
•HR 4213 EAH1S 
‘‘(ii) FUNDED
PERCENTAGE.— For 
purposes of clause (i), the term ‘funded per-
centage’ has the meaning provided in sec-
tion 305(i)(2), except that the value of the 
plan’s 
assets 
referred 
to 
in 
section 
305(i)(2)(A) shall be the market value of 
such assets. 
‘‘(iii) ACTUARIAL
ASSUMPTIONS.—In 
making any certification under this sub-
paragraph, the plan actuary shall use the 
same actuarial estimates, assumptions, and 
methods as those applicable for the most re-
cent certification under section 305, except 
that the plan actuary may take into ac-
count benefit reductions and increases in 
contribution rates, under either funding im-
provement plans adopted under section 
305(c) or under section 432(c) of the Inter-
nal Revenue Code of 1986 or rehabilitation 
plans adopted under section 305(e) or under 
section 432(e) of such Code, that the plan 
actuary reasonably anticipates will occur 
without regard to any change in status of 
the plan resulting from the election.
142 
•HR 4213 EAH1S 
‘‘(C) ADDITIONAL RESTRICTION ON BENEFIT 
INCREASES.—If an election is made under sub-
paragraph (A), then, in addition to any other 
applicable restrictions on benefit increases, a 
plan amendment which is adopted on or after 
March 10, 2010, and which increases benefits 
may not go into effect during the period begin-
ning on such date and ending with the second 
plan year beginning after such date unless— 
‘‘(i) the plan actuary certifies that— 
‘‘(I) any such increase is paid for 
out of additional contributions not al-
located to the plan immediately before 
the election to have this paragraph 
apply to the plan, and 
‘‘(II) the plan’s funded percentage 
and projected credit balances for the 
first 3 plan years ending on or after 
such date are reasonably expected to be 
at least as high as such percentage and 
balances would have been if the benefit 
increase had not been adopted, or 
‘‘(ii) the amendment is required as a 
condition of qualification under part I of 
subchapter D of chapter 1 of the Internal
143 
•HR 4213 EAH1S 
Revenue Code of 1986 or to comply with 
other applicable law. 
‘‘(D) TIME, FORM, AND MANNER OF ELEC-
TION.—An election under this paragraph shall be 
made not later than June 30, 2011, and shall be 
made in such form and manner as the Secretary 
of the Treasury may prescribe. 
‘‘(E) REPORTING.—A plan sponsor of a 
plan to which this paragraph applies shall— 
‘‘(i) give notice of such election to par-
ticipants and beneficiaries of the plan, and 
‘‘(ii) inform the Pension Benefit Guar-
anty Corporation of such election in such 
form and manner as the Pension Benefit 
Guaranty Corporation may prescribe.’’. 
(2) IRC AMENDMENT.—Section 431(b) of the In-
ternal Revenue Code of 1986 is amended by adding 
at the end the following new paragraph: 
‘‘(8) ELECTIVE SPECIAL RELIEF RULES.—Not-
withstanding any other provision of this subsection— 
‘‘(A) AMORTIZATION OF NET INVESTMENT 
LOSSES.— 
‘‘(i) IN GENERAL.—The plan sponsor 
of a multiemployer plan with respect to 
which the solvency test under subparagraph
144 
•HR 4213 EAH1S 
(B) is met may elect to treat the portion of 
any experience loss or gain for a plan year 
that is attributable to the allocable portion 
of the net investment losses incurred in ei-
ther or both of the first two plan years end-
ing on or after June 30, 2008, as an experi-
ence loss separate from other experience 
losses and gains to be amortized in equal 
annual installments (until fully amortized) 
over the period— 
‘‘(I) beginning with the plan year 
for which the allocable portion is deter-
mined, and 
‘‘(II) ending with the last plan 
year in the 30-plan year period begin-
ning with the plan year following the 
plan year in which such net invest-
ment loss was incurred. 
‘‘(ii) COORDINATION
WITH
EXTEN-
SIONS.—If an election is made under clause 
(i) for any plan year— 
‘‘(I) no extension of the amortiza-
tion period under clause (i) shall be al-
lowed under subsection (d), and
145 
•HR 4213 EAH1S 
‘‘(II) if an extension was granted 
under subsection (d) for any plan year 
before the plan year for which the elec-
tion under this subparagraph is made, 
such extension shall not result in such 
amortization 
period 
exceeding 
years. 
‘‘(iii) DEFINITIONS AND RULES.—For 
purposes of this subparagraph— 
‘‘(I) NET INVESTMENT LOSSES.— 
‘‘(aa) IN GENERAL.—The net 
investment loss incurred by a 
plan in a plan year is equal to 
the excess of— 
‘‘(AA) the expected value 
of the assets as of the end of 
the plan year, over 
‘‘(BB) the market value 
of the assets as of the end of 
the plan year, 
including any difference attrib-
utable to a criminally fraudulent 
investment arrangement. 
‘‘(bb) EXPECTED
VALUE.— 
For purposes of item (aa), the ex-
146 
•HR 4213 EAH1S 
pected value of the assets as of the 
end of a plan year is the excess 
of— 
‘‘(AA) the market value 
of the assets at the beginning 
of the plan year plus con-
tributions made during the 
plan year, over 
‘‘(BB) 
disbursements 
made during the plan year. 
The 
amounts 
described 
in 
subitems (AA) and (BB) shall be 
adjusted with interest at the valu-
ation rate to the end of the plan 
year. 
‘‘(II) CRIMINALLY
FRAUDULENT 
INVESTMENT ARRANGEMENTS.—The de-
termination as to whether an arrange-
ment is a criminally fraudulent invest-
ment arrangement shall be made under 
rules substantially similar to the rules 
prescribed by the Secretary for pur-
poses of section 165. 
‘‘(III) AMOUNT ATTRIBUTABLE TO 
ALLOCABLE PORTION OF NET INVEST-
147 
•HR 4213 EAH1S 
MENT LOSS.—The amount attributable 
to the allocable portion of the net in-
vestment loss for a plan year shall be 
an amount equal to the allocable por-
tion of net investment loss for the plan 
year under subclauses (IV) and (V), in-
creased with interest at the valuation 
rate determined from the plan year 
after the plan year in which the net 
investment loss was incurred. 
‘‘(IV) ALLOCABLE
PORTION
OF 
NET INVESTMENT LOSSES.—Except as 
provided in subclause (V), the net in-
vestment loss incurred in a plan year 
shall be allocated among the 5 plan 
years following the plan year in which 
the investment loss is incurred in ac-
cordance with the following table: 
‘‘Plan year after the plan year in 
which the net investment loss 
Allocable portion of net 
was incurred 
investment loss 
1st ............................................................................................
1⁄2 
2nd ...........................................................................................
3rd ...........................................................................................
1⁄6 
4th ............................................................................................
1⁄6 
5th ............................................................................................
1⁄6 
‘‘(V) SPECIAL
RULE
FOR
PLANS 
THAT ADOPT LONGER SMOOTHER PE-
RIOD.—If a plan sponsor elects an ex-
tended smoothing period for its asset
148 
•HR 4213 EAH1S 
valuation method under subsection 
(c)(2)(B), then the allocable portion of 
net investment loss for the first two 
plan years following the plan year the 
investment loss is incurred is the same 
as determined under subclause (IV), 
but the remaining 1⁄2 of the net invest-
ment loss is allocated ratably over the 
period beginning with the third plan 
year following the plan year the net 
investment loss is incurred and ending 
with the last plan year in the extended 
smoothing period. 
‘‘(VI) SPECIAL RULE FOR OVER-
STATEMENT OF LOSS.—If, for a plan 
year, there is an experience loss for the 
plan and the amount described in sub-
clause (III) exceeds the total amount of 
the experience loss for the plan year, 
then the excess shall be treated as an 
experience gain. 
‘‘(VII) SPECIAL RULE IN YEARS 
FOR WHICH OVERALL EXPERIENCE IS 
GAIN.—If, for a plan year, there is no 
experience loss for the plan, then, in
149 
•HR 4213 EAH1S 
addition to amortization of net invest-
ment losses under clause (i), the 
amount described in subclause (III) 
shall be treated as an experience gain 
in addition to any other experience 
gain. 
‘‘(B) SOLVENCY TEST.— 
‘‘(i) IN GENERAL.—An election may be 
made under this paragraph if the election 
includes certification by the plan actuary 
in connection with the election that the plan 
is projected to have a funded percentage at 
the end of the first 15 plan years that is not 
less than 100 percent of the funded percent-
age for the plan year of the election. 
‘‘(ii) FUNDED
PERCENTAGE.— For 
purposes of clause (i), the term ‘funded per-
centage’ has the meaning provided in sec-
tion 432(i)(2), except that the value of the 
plan’s 
assets 
referred 
to 
in 
section 
432(i)(2)(A) shall be the market value of 
such assets. 
‘‘(iii) ACTUARIAL
ASSUMPTIONS.—In 
making any certification under this sub-
paragraph, the plan actuary shall use the
150 
•HR 4213 EAH1S 
same actuarial estimates, assumptions, and 
methods as those applicable for the most re-
cent certification under section 432, except 
that the plan actuary may take into ac-
count benefit reductions and increases in 
contribution rates, under either funding im-
provement plans adopted under section 
432(c) or under section 305(c) of the Em-
ployee Retirement Income Security Act of 
1974 or rehabilitation plans adopted under 
section 432(e) or under section 305(e) of 
such Act, that the plan actuary reasonably 
anticipates will occur without regard to any 
change in status of the plan resulting from 
the election. 
‘‘(C) ADDITIONAL RESTRICTION ON BENEFIT 
INCREASES.—If an election is made under sub-
paragraph (A), then, in addition to any other 
applicable restrictions on benefit increases, a 
plan amendment which is adopted on or after 
March 10, 2010, and which increases benefits 
may not go into effect during the period begin-
ning on such date and ending with the second 
plan year beginning after such date unless— 
‘‘(i) the plan actuary certifies that—
151 
•HR 4213 EAH1S 
‘‘(I) any such increase is paid for 
out of additional contributions not al-
located to the plan immediately before 
the election to have this paragraph 
apply to the plan, and 
‘‘(II) the plan’s funded percentage 
and projected credit balances for the 
first 3 plan years ending on or after 
such date are reasonably expected to be 
at least as high as such percentage and 
balances would have been if the benefit 
increase had not been adopted, or 
‘‘(ii) the amendment is required as a 
condition of qualification under part I or to 
comply with other applicable law. 
‘‘(D) TIME, FORM, AND MANNER OF ELEC-
TION.—An election under this paragraph shall be 
made not later than June 30, 2011, and shall be 
made in such form and manner as the Secretary 
may prescribe. 
‘‘(E) REPORTING.—A plan sponsor of a 
plan to which this paragraph applies shall— 
‘‘(i) give notice of such election to par-
ticipants and beneficiaries of the plan, and
176 
•HR 4213 EAH1S 
‘‘(III) whether the investment op-
tion is designed to be a comprehensive, 
stand-alone investment for retirement 
that provides varying degrees of long- 
term appreciation and capital preser-
vation through a mix of equity and 
fixed income exposures, 
‘‘(IV) the extent to which the in-
vestment option is actively managed or 
passively managed in relation to an 
index and the difference between active 
management and passive management, 
‘‘(V) where, and the manner in 
which, additional plan-specific, option- 
specific, and generally available invest-
ment information may be obtained, 
and 
‘‘(VI) a statement explaining that 
investment options should not be evalu-
ated solely on the basis of the charges 
for each option but should also be 
based on consideration of other key fac-
tors, including the risk level of the op-
tion, the investment objectives of the 
option, historical returns of the option,
247 
•HR 4213 EAH1S 
‘‘(A) received from noncorporate residents 
or domestic corporations with respect to guaran-
tees, and 
‘‘(B) paid by any foreign person with re-
spect to guarantees if such amount is connected 
with income which is effectively connected (or 
treated as effectively connected) with the conduct 
of a trade or business in the United States.’’. 
(b) AMOUNTS
SOURCED
WITHOUT
THE
UNITED 
STATES.—Subsection (a) of section 862 is amended by 
striking ‘‘and’’ at the end of paragraph (7), by striking the 
period at the end of paragraph (8) and inserting ‘‘; and’’, 
and by adding at the end the following new paragraph: 
‘‘(9) amounts received with respect to guarantees 
other than those derived from sources within the 
United States as provided in section 861(a)(9).’’. 
(c) CONFORMING AMENDMENT.—Clause (ii) of section 
864(c)(4)(B) is amended by striking ‘‘dividends or interest’’ 
and inserting ‘‘dividends, interest, or amounts with respect 
to guarantees’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to guarantees issued after the date of 
the enactment of this Act.
289 
•HR 4213 EAH1S 
(B) in the heading for paragraph (2), by strik-
ing ‘‘JUNE
2, 2010’’ and inserting ‘‘NOVEMBER
30, 
2010’’; and 
(C) in paragraph (3), by striking ‘‘December 7, 
2010’’ and inserting ‘‘May 31, 2011’’. 
(3) Section 2005 of the Assistance for Unemployed 
Workers and Struggling Families Act, as contained in Pub-
lic Law 111–5 (26 U.S.C. 3304 note; 123 Stat. 444), is 
amended— 
(A) by striking ‘‘June 2, 2010’’ each place it ap-
pears and inserting ‘‘December 1, 2010’’; and 
(B) in subsection (c), by striking ‘‘November 6, 
2010’’ and inserting ‘‘May 1, 2011’’. 
(4) Section 5 of the Unemployment Compensation Ex-
tension Act of 2008 (Public Law 110–449; 26 U.S.C. 3304 
note) is amended by striking ‘‘November 6, 2010’’ and in-
serting ‘‘April 30, 2011’’. 
(b) FUNDING.—Section 4004(e)(1) of the Supplemental 
Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 
3304 note) is amended— 
(1) in subparagraph (D), by striking ‘‘and’’ at 
the end; and 
(2) by inserting after subparagraph (E) the fol-
lowing: