259 
inserting ‘‘($46,200 in the case of taxable years begin-
ning in 2008)’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2007. 
SEC. 103. INCREASE OF AMT REFUNDABLE CREDIT AMOUNT 
FOR INDIVIDUALS WITH LONG-TERM UNUSED 
CREDITS FOR PRIOR YEAR MINIMUM TAX LI-
ABILITY, ETC. 
(a) IN GENERAL.—Paragraph (2) of section 53(e) is 
amended to read as follows: 
‘‘(2) AMT REFUNDABLE CREDIT AMOUNT.—For 
purposes of paragraph (1), the term ‘AMT refundable 
credit amount’ means, with respect to any taxable 
year, the amount (not in excess of the long-term un-
used minimum tax credit for such taxable year) equal 
to the greater of— 
‘‘(A) 50 percent of the long-term unused 
minimum tax credit for such taxable year, or 
‘‘(B) the amount (if any) of the AMT re-
fundable credit amount determined under this 
paragraph for the taxpayer’s preceding taxable 
year (determined without regard to subsection 
(f)(2)).’’.
260 
(b) TREATMENT OF CERTAIN UNDERPAYMENTS, IN-
TEREST, AND PENALTIES ATTRIBUTABLE TO THE TREAT-
MENT
OF INCENTIVE STOCK OPTIONS.—Section 53 is 
amended by adding at the end the following new subsection: 
‘‘(f) TREATMENT OF CERTAIN UNDERPAYMENTS, IN-
TEREST, AND PENALTIES ATTRIBUTABLE TO THE TREAT-
MENT OF INCENTIVE STOCK OPTIONS.— 
‘‘(1) ABATEMENT.—Any underpayment of tax 
outstanding on the date of the enactment of this sub-
section which is attributable to the application of sec-
tion 56(b)(3) for any taxable year ending before Jan-
uary 1, 2008, and any interest or penalty with re-
spect to such underpayment which is outstanding on 
such date of enactment, is hereby abated. The amount 
determined under subsection (b)(1) shall not include 
any tax abated under the preceding sentence. 
‘‘(2) INCREASE IN CREDIT FOR CERTAIN INTER-
EST AND PENALTIES ALREADY PAID.—The AMT re-
fundable credit amount, and the minimum tax credit 
determined under subsection (b), for the taxpayer’s 
first 2 taxable years beginning after December 31, 
2007, shall each be increased by 50 percent of the ag-
gregate amount of the interest and penalties which 
were paid by the taxpayer before the date of the enact-
261 
ment of this subsection and which would (but for such 
payment) have been abated under paragraph (1).’’. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section shall 
apply to taxable years beginning after December 31, 
2007. 
(2) ABATEMENT.—Section 53(f)(1), as added by 
subsection (b), shall take effect on the date of the en-
actment of this Act. 
TITLE II—EXTENSION OF 
INDIVIDUAL TAX PROVISIONS 
SEC. 201. DEDUCTION FOR STATE AND LOCAL SALES TAXES. 
(a) IN
GENERAL.—Subparagraph (I) of section 
164(b)(5) is amended by striking ‘‘January 1, 2008’’ and 
inserting ‘‘January 1, 2010’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2007. 
SEC. 202. DEDUCTION OF QUALIFIED TUITION AND RE-
LATED EXPENSES. 
(a) IN GENERAL.—Subsection (e) of section 222 (relat-
ing to termination) is amended by striking ‘‘December 31, 
2007’’ and inserting ‘‘December 31, 2009’’.
262 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2007. 
SEC. 203. DEDUCTION FOR CERTAIN EXPENSES OF ELEMEN-
TARY AND SECONDARY SCHOOL TEACHERS. 
(a) IN
GENERAL.—Subparagraph (D) of section 
62(a)(2) (relating to certain expenses of elementary and sec-
ondary school teachers) is amended by striking ‘‘or 2007’’ 
and inserting ‘‘2007, 2008, or 2009’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply to taxable years beginning after De-
cember 31, 2007. 
SEC. 204. ADDITIONAL STANDARD DEDUCTION FOR REAL 
PROPERTY TAXES FOR NONITEMIZERS. 
(a) IN
GENERAL.—Subparagraph (C) of section 
63(c)(1), as added by the Housing Assistance Tax Act of 
2008, is amended by inserting ‘‘or 2009’’ after ‘‘2008’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2008.
263 
SEC. 205. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RE-
TIREMENT PLANS FOR CHARITABLE PUR-
POSES. 
(a) IN
GENERAL.—Subparagraph (F) of section 
408(d)(8) (relating to termination) is amended by striking 
‘‘December 31, 2007’’ and inserting ‘‘December 31, 2009’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to distributions made in taxable years 
beginning after December 31, 2007. 
SEC. 206. TREATMENT OF CERTAIN DIVIDENDS OF REGU-
LATED INVESTMENT COMPANIES. 
(a) INTEREST-RELATED DIVIDENDS.—Subparagraph 
(C) of section 871(k)(1) (defining interest-related dividend) 
is amended by striking ‘‘December 31, 2007’’ and inserting 
‘‘December 31, 2009’’. 
(b) SHORT-TERM CAPITAL GAIN DIVIDENDS.—Sub-
paragraph (C) of section 871(k)(2) (defining short-term 
capital gain dividend) is amended by striking ‘‘December 
31, 2007’’ and inserting ‘‘December 31, 2009’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to dividends with respect to taxable 
years of regulated investment companies beginning after 
December 31, 2007.
264 
SEC. 207. STOCK IN RIC FOR PURPOSES OF DETERMINING 
ESTATES OF NONRESIDENTS NOT CITIZENS. 
(a) IN GENERAL.—Paragraph (3) of section 2105(d) 
(relating to stock in a RIC) is amended by striking ‘‘Decem-
ber 31, 2007’’ and inserting ‘‘December 31, 2009’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to decedents dying after December 31, 
2007. 
SEC. 208. QUALIFIED INVESTMENT ENTITIES. 
(a) IN GENERAL.—Clause (ii) of section 897(h)(4)(A) 
(relating to termination) is amended by striking ‘‘December 
31, 2007’’ and inserting ‘‘December 31, 2009’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on January 1, 2008. 
TITLE III—EXTENSION OF 
BUSINESS TAX PROVISIONS 
SEC. 301. EXTENSION AND MODIFICATION OF RESEARCH 
CREDIT. 
(a) EXTENSION.— 
(1) IN GENERAL.—Section 41(h) (relating to ter-
mination) is amended by striking ‘‘December 31, 
2007’’ and inserting ‘‘December 31, 2009’’ in para-
graph (1)(B). 
(2) CONFORMING
AMENDMENT.—Subparagraph 
(D) of section 45C(b)(1) (relating to special rule) is
265 
amended by striking ‘‘after December 31, 2007’’ and 
inserting ‘‘after December 31, 2009’’. 
(b) TERMINATION
OF ALTERNATIVE INCREMENTAL 
CREDIT.—Section 41(h) is amended by redesignating para-
graph (2) as paragraph (3), and by inserting after para-
graph (1) the following new paragraph: 
‘‘(2) TERMINATION
OF
ALTERNATIVE
INCRE-
MENTAL CREDIT.—No election under subsection (c)(4) 
shall apply to taxable years beginning after December 
31, 2008.’’. 
(c) MODIFICATION
OF
ALTERNATIVE
SIMPLIFIED 
CREDIT.—Paragraph (5)(A) of section 41(c) (relating to 
election of alternative simplified credit) is amended by 
striking ‘‘12 percent’’ and inserting ‘‘14 percent (12 percent 
in the case of taxable years ending before January 1, 
2009)’’. 
(d) TECHNICAL CORRECTION.—Paragraph (3) of sec-
tion 41(h) is amended to read as follows: 
‘‘(2) COMPUTATION
FOR
TAXABLE
YEAR
IN 
WHICH CREDIT TERMINATES.—In the case of any tax-
able year with respect to which this section applies to 
a number of days which is less than the total number 
of days in such taxable year— 
‘‘(A) the amount determined under sub-
section (c)(1)(B) with respect to such taxable
266 
year shall be the amount which bears the same 
ratio to such amount (determined without regard 
to this paragraph) as the number of days in such 
taxable year to which this section applies bears 
to the total number of days in such taxable year, 
and 
‘‘(B) for purposes of subsection (c)(5), the 
average qualified research expenses for the pre-
ceding 3 taxable years shall be the amount which 
bears the same ratio to such average qualified re-
search expenses (determined without regard to 
this paragraph) as the number of days in such 
taxable year to which this section applies bears 
to the total number of days in such taxable 
year.’’. 
(e) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section shall 
apply to taxable years beginning after December 31, 
2007. 
(2) EXTENSION.—The amendments made by sub-
section (a) shall apply to amounts paid or incurred 
after December 31, 2007.
267 
SEC. 302. NEW MARKETS TAX CREDIT. 
Subparagraph (D) of section 45D(f)(1) (relating to na-
tional limitation on amount of investments designated) is 
amended by striking ‘‘and 2008’’ and inserting ‘‘2008, and 
2009’’. 
SEC. 303. SUBPART F EXCEPTION FOR ACTIVE FINANCING 
INCOME. 
(a) EXEMPT INSURANCE INCOME.—Paragraph (10) of 
section 953(e) (relating to application) is amended— 
(1) by striking ‘‘January 1, 2009’’ and inserting 
‘‘January 1, 2010’’, and 
(2) by striking ‘‘December 31, 2008’’ and insert-
ing ‘‘December 31, 2009’’. 
(b) EXCEPTION TO TREATMENT AS FOREIGN PER-
SONAL HOLDING COMPANY INCOME.—Paragraph (9) of sec-
tion 954(h) (relating to application) is amended by striking 
‘‘January 1, 2009’’ and inserting ‘‘January 1, 2010’’. 
SEC. 304. EXTENSION OF LOOK-THRU RULE FOR RELATED 
CONTROLLED FOREIGN CORPORATIONS. 
(a) IN
GENERAL.—Subparagraph (C) of section 
954(c)(6) (relating to application) is amended by striking 
‘‘January 1, 2009’’ and inserting ‘‘January 1, 2010’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years of foreign corporations 
beginning after December 31, 2007, and to taxable years
268 
of United States shareholders with or within which such 
taxable years of foreign corporations end. 
SEC. 305. EXTENSION OF 15-YEAR STRAIGHT-LINE COST RE-
COVERY FOR QUALIFIED LEASEHOLD IM-
PROVEMENTS AND QUALIFIED RESTAURANT 
IMPROVEMENTS; 
15-YEAR 
STRAIGHT-LINE 
COST RECOVERY FOR CERTAIN IMPROVE-
MENTS TO RETAIL SPACE. 
(a) EXTENSION OF LEASEHOLD AND RESTAURANT IM-
PROVEMENTS.— 
(1) IN GENERAL.—Clauses (iv) and (v) of section 
168(e)(3)(E) (relating to 15-year property) are each 
amended by striking ‘‘January 1, 2008’’ and insert-
ing ‘‘January 1, 2010’’. 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to property placed in 
service after December 31, 2007. 
(b) TREATMENT TO INCLUDE NEW CONSTRUCTION.— 
(1) IN
GENERAL.—Paragraph (7) of section 
168(e) (relating to classification of property) is 
amended to read as follows: 
‘‘(7) QUALIFIED RESTAURANT PROPERTY.— 
‘‘(A) IN GENERAL.—The term ‘qualified res-
taurant property’ means any section 1250 prop-
erty which is—
269 
‘‘(i) a building, if such building is 
placed in service after December 31, 2008, 
and before January 1, 2010, or 
‘‘(ii) an improvement to a building, 
if more than 50 percent of the building’s square 
footage is devoted to preparation of, and seating 
for on-premises consumption of, prepared meals. 
‘‘(B) EXCLUSION FROM BONUS DEPRECIA-
TION.—Property described in this paragraph 
shall not be considered qualified property for 
purposes of subsection (k).’’. 
(2) EFFECTIVE DATE.—The amendment made by 
this subsection shall apply to property placed in serv-
ice after December 31, 2008. 
(c) RECOVERY PERIOD FOR DEPRECIATION OF CER-
TAIN IMPROVEMENTS TO RETAIL SPACE.— 
(1) 
15-YEAR
RECOVERY
PERIOD.—Section 
168(e)(3)(E) (relating to 15-year property) is amend-
ed by striking ‘‘and’’ at the end of clause (vii), by 
striking the period at the end of clause (viii) and in-
serting ‘‘, and’’, and by adding at the end the fol-
lowing new clause: 
‘‘(ix) any qualified retail improvement 
property placed in service after December 
31, 2008, and before January 1, 2010.’’.
270 
(2) QUALIFIED
RETAIL
IMPROVEMENT
PROP-
ERTY.—Section 168(e) is amended by adding at the 
end the following new paragraph: 
‘‘(8) QUALIFIED
RETAIL
IMPROVEMENT
PROP-
ERTY.— 
‘‘(A) IN GENERAL.—The term ‘qualified re-
tail improvement property’ means any improve-
ment to an interior portion of a building which 
is nonresidential real property if— 
‘‘(i) such portion is open to the general 
public and is used in the retail trade or 
business of selling tangible personal prop-
erty to the general public, and 
‘‘(ii) such improvement is placed in 
service more than 3 years after the date the 
building was first placed in service. 
‘‘(B) IMPROVEMENTS MADE BY OWNER.—In 
the case of an improvement made by the owner 
of such improvement, such improvement shall be 
qualified retail improvement property (if at all) 
only so long as such improvement is held by such 
owner. Rules similar to the rules under para-
graph (6)(B) shall apply for purposes of the pre-
ceding sentence.
271 
‘‘(C) CERTAIN
IMPROVEMENTS
NOT
IN-
CLUDED.—Such term shall not include any im-
provement for which the expenditure is attrib-
utable to— 
‘‘(i) the enlargement of the building, 
‘‘(ii) any elevator or escalator, 
‘‘(iii) any structural component bene-
fitting a common area, or 
‘‘(iv) the internal structural framework 
of the building. 
‘‘(D) EXCLUSION FROM BONUS DEPRECIA-
TION.—Property described in this paragraph 
shall not be considered qualified property for 
purposes of subsection (k). 
‘‘(E) TERMINATION.—Such term shall not 
include any improvement placed in service after 
December 31, 2009.’’. 
(3) REQUIREMENT
TO
USE
STRAIGHT
LINE 
METHOD.—Section 168(b)(3) is amended by adding 
at the end the following new subparagraph: 
‘‘(I) Qualified retail improvement property 
described in subsection (e)(8).’’. 
(4) ALTERNATIVE SYSTEM.—The table contained 
in section 168(g)(3)(B) is amended by inserting after
272 
the item relating to subparagraph (E)(viii) the fol-
lowing new item: 
‘‘(E)(ix) ...................................................................................................
39’’. 
(5) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to property placed in 
service after December 31, 2008. 
SEC. 306. MODIFICATION OF TAX TREATMENT OF CERTAIN 
PAYMENTS TO CONTROLLING EXEMPT ORGA-
NIZATIONS. 
(a) IN GENERAL.—Clause (iv) of section 512(b)(13)(E) 
(relating to termination) is amended by striking ‘‘December 
31, 2007’’ and inserting ‘‘December 31, 2009’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to payments received or accrued after 
December 31, 2007. 
SEC. 307. BASIS ADJUSTMENT TO STOCK OF S CORPORA-
TIONS MAKING CHARITABLE CONTRIBUTIONS 
OF PROPERTY. 
(a) IN
GENERAL.—The last sentence of section 
1367(a)(2) (relating to decreases in basis) is amended by 
striking ‘‘December 31, 2007’’ and inserting ‘‘December 31, 
2009’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to contributions made in taxable years 
beginning after December 31, 2007.
273 
SEC. 308. INCREASE IN LIMIT ON COVER OVER OF RUM EX-
CISE TAX TO PUERTO RICO AND THE VIRGIN 
ISLANDS. 
(a) IN GENERAL.—Paragraph (1) of section 7652(f) is 
amended by striking ‘‘January 1, 2008’’ and inserting 
‘‘January 1, 2010’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to distilled spirits brought into the 
United States after December 31, 2007. 
SEC. 309. EXTENSION OF ECONOMIC DEVELOPMENT CRED-
IT FOR AMERICAN SAMOA. 
(a) IN GENERAL.—Subsection (d) of section 119 of di-
vision A of the Tax Relief and Health Care Act of 2006 
is amended— 
(1) by striking ‘‘first two taxable years’’ and in-
serting ‘‘first 4 taxable years’’, and 
(2) by striking ‘‘January 1, 2008’’ and inserting 
‘‘January 1, 2010’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2007. 
SEC. 310. EXTENSION OF MINE RESCUE TEAM TRAINING 
CREDIT. 
Section 45N(e) (relating to termination) is amended 
by striking ‘‘December 31, 2008’’ and inserting ‘‘December 
31, 2009’’.
274 
SEC. 311. EXTENSION OF ELECTION TO EXPENSE AD-
VANCED MINE SAFETY EQUIPMENT. 
Section 179E(g) (relating to termination) is amended 
by striking ‘‘December 31, 2008’’ and inserting ‘‘December 
31, 2009’’. 
SEC. 312. 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) (relating to termination) is amended— 
(1) by striking ‘‘first 2 taxable years’’ and in-
serting ‘‘first 4 taxable years’’, and 
(2) by striking ‘‘January 1, 2008’’ and inserting 
‘‘January 1, 2010’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2007. 
SEC. 313. QUALIFIED ZONE ACADEMY BONDS. 
(a) IN GENERAL.—Subpart I of part IV of subchapter 
A of chapter 1 is amended by adding at the end the fol-
lowing new section: 
‘‘SEC. 54E. QUALIFIED ZONE ACADEMY BONDS. 
‘‘(a) QUALIFIED ZONE ACADEMY BONDS.—For pur-
poses of this subchapter, the term ‘qualified zone academy 
bond’ means any bond issued as part of an issue if—
275 
‘‘(1) 100 percent of the available project proceeds 
of such issue are to be used for a qualified purpose 
with respect to a qualified zone academy established 
by an eligible local education agency, 
‘‘(2) the bond is issued by a State or local gov-
ernment within the jurisdiction of which such acad-
emy is located, and 
‘‘(3) the issuer— 
‘‘(A) designates such bond for purposes of 
this section, 
‘‘(B) certifies that it has written assurances 
that the private business contribution require-
ment of subsection (b) will be met with respect 
to such academy, and 
‘‘(C) certifies that it has the written ap-
proval of the eligible local education agency for 
such bond issuance. 
‘‘(b) PRIVATE BUSINESS CONTRIBUTION REQUIRE-
MENT.—For purposes of subsection (a), the private business 
contribution requirement of this subsection is met with re-
spect to any issue if the eligible local education agency that 
established the qualified zone academy has written commit-
ments from private entities to make qualified contributions 
having a present value (as of the date of issuance of the 
issue) of not less than 10 percent of the proceeds of the issue.
276 
‘‘(c) LIMITATION
ON
AMOUNT
OF
BONDS
DES-
IGNATED.— 
‘‘(1) NATIONAL
LIMITATION.—There is a na-
tional zone academy bond limitation for each cal-
endar year. Such limitation is $400,000,000 for 2008 
and 2009, and, except as provided in paragraph (4), 
zero thereafter. 
‘‘(2) ALLOCATION OF LIMITATION.—The national 
zone academy bond limitation for a calendar year 
shall be allocated by the Secretary among the States 
on the basis of their respective populations of individ-
uals below the poverty line (as defined by the Office 
of Management and Budget). The limitation amount 
allocated to a State under the preceding sentence shall 
be allocated by the State education agency to quali-
fied zone academies within such State. 
‘‘(3) DESIGNATION
SUBJECT
TO
LIMITATION 
AMOUNT.—The maximum aggregate face amount of 
bonds issued during any calendar year which may be 
designated under subsection (a) with respect to any 
qualified zone academy shall not exceed the limitation 
amount allocated to such academy under paragraph 
(2) for such calendar year. 
‘‘(4) CARRYOVER OF UNUSED LIMITATION.—
277 
‘‘(A) IN
GENERAL.—If for any calendar 
year— 
‘‘(i) the limitation amount for any 
State, exceeds 
‘‘(ii) the amount of bonds issued dur-
ing such year which are designated under 
subsection (a) with respect to qualified zone 
academies within such State, 
the limitation amount for such State for the fol-
lowing calendar year shall be increased by the 
amount of such excess. 
‘‘(B) LIMITATION
ON
CARRYOVER.—Any 
carryforward of a limitation amount may be 
carried only to the first 2 years following the un-
used limitation year. For purposes of the pre-
ceding sentence, a limitation amount shall be 
treated as used on a first-in first-out basis. 
‘‘(C) COORDINATION WITH SECTION 1397E.— 
Any 
carryover 
determined 
under 
section 
1397E(e)(4) (relating to carryover of unused 
limitation) with respect to any State to calendar 
year 2008 or 2009 shall be treated for purposes 
of this section as a carryover with respect to such 
State for such calendar year under subparagraph 
(A), and the limitation of subparagraph (B)
278 
shall apply to such carryover taking into account 
the calendar years to which such carryover re-
lates. 
‘‘(d) DEFINITIONS.—For purposes of this section— 
‘‘(1) QUALIFIED
ZONE
ACADEMY.—The term 
‘qualified zone academy’ means any public school (or 
academic program within a public school) which is 
established by and operated under the supervision of 
an eligible local education agency to provide edu-
cation or training below the postsecondary level if— 
‘‘(A) such public school or program (as the 
case may be) is designed in cooperation with 
business to enhance the academic curriculum, in-
crease graduation and employment rates, and 
better prepare students for the rigors of college 
and the increasingly complex workforce, 
‘‘(B) students in such public school or pro-
gram (as the case may be) will be subject to the 
same academic standards and assessments as 
other students educated by the eligible local edu-
cation agency, 
‘‘(C) the comprehensive education plan of 
such public school or program is approved by the 
eligible local education agency, and
279 
‘‘(D)(i) such public school is located in an 
empowerment zone or enterprise community (in-
cluding any such zone or community designated 
after the date of the enactment of this section), 
or 
‘‘(ii) there is a reasonable expectation (as of 
the date of issuance of the bonds) that at least 
35 percent of the students attending such school 
or participating in such program (as the case 
may be) will be eligible for free or reduced-cost 
lunches under the school lunch program estab-
lished under the National School Lunch Act. 
‘‘(2) ELIGIBLE LOCAL EDUCATION AGENCY.—For 
purposes of this section, the term ‘eligible local edu-
cation agency’ means any local educational agency as 
defined in section 9101 of the Elementary and Sec-
ondary Education Act of 1965. 
‘‘(3) QUALIFIED PURPOSE.—The term ‘qualified 
purpose’ means, with respect to any qualified zone 
academy— 
‘‘(A) rehabilitating or repairing the public 
school facility in which the academy is estab-
lished, 
‘‘(B) providing equipment for use at such 
academy,
280 
‘‘(C) developing course materials for edu-
cation to be provided at such academy, and 
‘‘(D) training teachers and other school per-
sonnel in such academy. 
‘‘(4) QUALIFIED
CONTRIBUTIONS.—The term 
‘qualified contribution’ means any contribution (of a 
type and quality acceptable to the eligible local edu-
cation agency) of— 
‘‘(A) equipment for use in the qualified zone 
academy (including state-of-the-art technology 
and vocational equipment), 
‘‘(B) technical assistance in developing cur-
riculum or in training teachers in order to pro-
mote appropriate market driven technology in 
the classroom, 
‘‘(C) services of employees as volunteer men-
tors, 
‘‘(D) internships, field trips, or other edu-
cational opportunities outside the academy for 
students, or 
‘‘(E) any other property or service specified 
by the eligible local education agency.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (1) of section 54A(d), as amended 
by this Act, is amended by striking ‘‘or’’ at the end
281 
of subparagraph (B), by inserting ‘‘or’’ at the end of 
subparagraph (C), and by inserting after subpara-
graph (C) the following new subparagraph: 
‘‘(D) a qualified zone academy bond,’’. 
(2) Subparagraph (C) of section 54A(d)(2), as 
amended by this Act, is amended by striking ‘‘and’’ 
at the end of clause (ii), by striking the period at the 
end of clause (iii) and inserting ‘‘, and’’, and by add-
ing at the end the following new clause: 
‘‘(iv) in the case of a qualified zone 
academy bond, a purpose specified in sec-
tion 54E(a)(1).’’. 
(3) Section 1397E is amended by adding at the 
end the following new subsection: 
‘‘(m) TERMINATION.—This section shall not apply to 
any obligation issued after the date of the enactment of the 
Tax Extenders and Alternative Minimum Tax Relief Act 
of 2008.’’. 
(4) The table of sections for subpart I of part IV 
of subchapter A of chapter 1 is amended by adding 
at the end the following new item: 
‘‘Sec. 54E. Qualified zone academy bonds.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to obligations issued after the date of 
the enactment of this Act.
282 
SEC. 314. INDIAN EMPLOYMENT CREDIT. 
(a) IN GENERAL.—Subsection (f) of section 45A (relat-
ing to termination) is amended by striking ‘‘December 31, 
2007’’ and inserting ‘‘December 31, 2009’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2007. 
SEC. 315. ACCELERATED DEPRECIATION FOR BUSINESS 
PROPERTY ON INDIAN RESERVATIONS. 
(a) IN GENERAL.—Paragraph (8) of section 168(j) (re-
lating to termination) is amended by striking ‘‘December 
31, 2007’’ and inserting ‘‘December 31, 2009’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to property placed in service after De-
cember 31, 2007. 
SEC. 316. RAILROAD TRACK MAINTENANCE. 
(a) IN GENERAL.—Subsection (f) of section 45G (relat-
ing to application of section) is amended by striking ‘‘Jan-
uary 1, 2008’’ and inserting ‘‘January 1, 2010’’. 
(b) CREDIT ALLOWED AGAINST ALTERNATIVE MIN-
IMUM TAX.—Subparagraph (B) of section 38(c)(4), as 
amended by this Act, is amended— 
(1) by redesignating clauses (v), (vi), and (vii) 
as clauses (vi), (vii), and (viii), respectively, and 
(2) by inserting after clause (iv) the following 
new clause:
283 
‘‘(v) the credit determined under sec-
tion 45G,’’. 
(c) EFFECTIVE DATES.— 
(1) The amendment made by subsection (a) shall 
apply to expenditures paid or incurred during tax-
able years beginning after December 31, 2007. 
(2) The amendments made by subsection (b) 
shall apply to credits determined under section 45G 
of the Internal Revenue Code of 1986 in taxable years 
beginning after December 31, 2007, and to carrybacks 
of such credits. 
SEC. 317. SEVEN-YEAR COST RECOVERY PERIOD FOR MO-
TORSPORTS RACING TRACK FACILITY. 
(a) IN
GENERAL.—Subparagraph (D) of section 
168(i)(15) (relating to termination) is amended by striking 
‘‘December 31, 2007’’ and inserting ‘‘December 31, 2009’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to property placed in service after De-
cember 31, 2007. 
SEC. 318. EXPENSING OF ENVIRONMENTAL REMEDIATION 
COSTS. 
(a) IN GENERAL.—Subsection (h) of section 198 (relat-
ing to termination) is amended by striking ‘‘December 31, 
2007’’ and inserting ‘‘December 31, 2009’’.
284 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to expenditures paid or incurred after 
December 31, 2007. 
SEC. 319. EXTENSION OF WORK OPPORTUNITY TAX CREDIT 
FOR HURRICANE KATRINA EMPLOYEES. 
(a) IN GENERAL.—Paragraph (1) of section 201(b) of 
the Katrina Emergency Tax Relief Act of 2005 is amended 
by striking ‘‘2-year’’ and inserting ‘‘4-year’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply to individuals hired after August 
27, 2007. 
SEC. 320. EXTENSION OF INCREASED REHABILITATION 
CREDIT FOR STRUCTURES IN THE GULF OP-
PORTUNITY ZONE. 
(a) IN GENERAL.—Subsection (h) of section 1400N is 
amended by striking ‘‘December 31, 2008’’ and inserting 
‘‘December 31, 2009’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to expenditures paid or incurred after 
the date of the enactment of this Act. 
SEC. 321. ENHANCED DEDUCTION FOR QUALIFIED COM-
PUTER CONTRIBUTIONS. 
(a) IN
GENERAL.—Subparagraph (G) of section 
170(e)(6) is amended by striking ‘‘December 31, 2007’’ and 
inserting ‘‘December 31, 2009’’.