H. R. 2206—64
(d) REPORTS.—(1) Not later than 30 days after the date of 
enactment of this Act, the Commandant of the Coast Guard shall 
submit to the Committees on Appropriations of the Senate and 
the House of Representatives; the Committee on Commerce, Science 
and Transportation of the Senate; and the Committee on Transpor-
tation and Infrastructure of the House of Representatives: (i) a 
report on the resources (including training, staff, and expertise) 
required by the Coast Guard to provide appropriate management 
and oversight of the Integrated Deepwater Systems program; and 
(ii) a report on how the Coast Guard will utilize full and open 
competition for any contract that provides for the acquisition or 
modification of assets under, or in support of, the Integrated Deep-
water Systems program, entered into after the date of enactment 
of this Act. 
(2) Within 30 days following the submission of the expenditure 
plan required under subsection (c), the Government Accountability 
Office shall review the plan and brief the Committees on Appropria-
tions of the Senate and the House of Representatives on its findings. 
SEC. 6403. None of the funds provided in this Act or any 
other Act may be used to alter or reduce operations within the 
Civil Engineering Program of the Coast Guard nationwide, 
including the civil engineering units, facilities, design and construc-
tion centers, maintenance and logistics command centers, and the 
Coast Guard Academy, except as specifically authorized by a statute 
enacted after the date of enactment of this Act. 
(INCLUDING RESCISSIONS OF FUNDS) 
SEC. 6404. (a) RESCISSIONS.—The following unobligated bal-
ances made available pursuant to section 505 of Public Law 109–
90 are rescinded: $1,200,962 from the ‘‘Office of the Secretary 
and Executive Management’’; $512,855 from the ‘‘Office of the Under 
Secretary for Management’’; $461,874 from the ‘‘Office of the Chief 
Information Officer’’; $45,080 from the ‘‘Office of the Chief Financial 
Officer’’; $968,211 from Preparedness ‘‘Management and Adminis-
tration’’; $1,215,486 from Science and Technology ‘‘Management 
and Administration’’; $450,000 from United States Secret Service 
‘‘Salaries and Expenses’’; $450,000 from Federal Emergency 
Management Agency ‘‘Administrative and Regional Operations’’; 
and $25,595,532 from United States Coast Guard ‘‘Operating 
Expenses’’. 
(b) ADDITIONAL APPROPRIATIONS.—
(1) For an additional amount for United States Coast Guard 
‘‘Acquisition, Construction, and Improvements’’, $30,000,000, 
to remain available until September 30, 2009, to mitigate the 
Service’s patrol boat operational gap. 
(2) For an additional amount for the ‘‘Office of the Under 
Secretary for Management’’, $900,000 for an independent study 
to compare the Department of Homeland Security senior career 
and political staffing levels and senior career training programs 
with those of similarly structured cabinet-level agencies as 
detailed in House Report 110–107: Provided, That the Depart-
ment of Homeland Security shall provide to the Committees 
on Appropriations of the Senate and the House of Representa-
tives by July 20, 2007, a report on senior staffing, as detailed 
in Senate Report 110–37, and the Government Accountability 
Office shall report on the strengths and weakness of this report 
within 90 days after its submission.
H. R. 2206—65
SEC. 6405. (a) IN GENERAL.—With respect to contracts entered 
into after July 1, 2007, and except as provided in subsection (b), 
no entity performing lead system integrator functions in the acquisi-
tion of a major system by the Department of Homeland Security 
may have any direct financial interest in the development or 
construction of any individual system or element of any system 
of systems. 
(b) EXCEPTION.—An entity described in subsection (a) may have 
a direct financial interest in the development or construction of 
an individual system or element of a system of systems if—
(1) the Secretary of Homeland Security certifies to the 
Committees on Appropriations of the Senate and the House 
of Representatives, the Committee on Homeland Security of 
the House of Representatives, the Committee on Transportation 
and Infrastructure of the House of Representatives, the Com-
mittee on Homeland Security and Governmental Affairs of the 
Senate, and the Committee on Commerce, Science and 
Transportation of the Senate that—
(A) the entity was selected by the Department of Home-
land Security as a contractor to develop or construct the 
system or element concerned through the use of competitive 
procedures; and 
(B) the Department took appropriate steps to prevent 
any organizational conflict of interest in the selection 
process; or 
(2) the entity was selected by a subcontractor to serve 
as a lower-tier subcontractor, through a process over which 
the entity exercised no control. 
(c) CONSTRUCTION.—Nothing in this section shall be construed 
to preclude an entity described in subsection (a) from performing 
work necessary to integrate two or more individual systems or 
elements of a system of systems with each other. 
(d) REGULATIONS UPDATE.—Not later than July 1, 2007, the 
Secretary of Homeland Security shall update the acquisition regula-
tions of the Department of Homeland Security in order to specify 
fully in such regulations the matters with respect to lead system 
integrators set forth in this section. Included in such regulations 
shall be: (1) a precise and comprehensive definition of the term 
‘‘lead system integrator’’, modeled after that used by the Depart-
ment of Defense; and (2) a specification of various types of contracts 
and fee structures that are appropriate for use by lead system 
integrators in the production, fielding, and sustainment of complex 
systems. 
CHAPTER 5
GENERAL PROVISIONS—THIS CHAPTER 
SEC. 6501. Section 20515 of the Continuing Appropriations 
Resolution, 2007 (division B of Public Law 109–289, as amended 
by Public Law 110–5) is amended by inserting before the period: 
‘‘; and of which, not to exceed $143,628,000 shall be available 
for contract support costs under the terms and conditions contained 
in Public Law 109–54’’. 
SEC. 6502. Section 20512 of the Continuing Appropriations 
Resolution, 2007 (division B of Public Law 109–289, as amended 
by Public Law 110–5) is amended by inserting after the first dollar
H. R. 2206—66
amount: ‘‘, of which not to exceed $7,300,000 shall be transferred 
to the ‘Indian Health Facilities’ account; the amount in the second 
proviso shall be $18,000,000; the amount in the third proviso shall 
be $525,099,000; the amount in the ninth proviso shall be 
$269,730,000; and the $15,000,000 allocation of funding under the 
eleventh proviso shall not be required’’. 
SEC. 6503. Section 20501 of the Continuing Appropriations 
Resolution, 2007 (division B of Public Law 109–289, as amended 
by Public Law 110–5) is amended by inserting after ‘‘$55,663,000’’ 
the following: ‘‘of which $13,000,000 shall be for Save America’s 
Treasures’’. 
SEC. 6504. Funds made available to the United States Fish 
and Wildlife Service for fiscal year 2007 under the heading ‘‘Land 
Acquisition’’ may be used for land conservation partnerships author-
ized by the Highlands Conservation Act of 2004. 
CHAPTER 6
DEPARTMENT OF HEALTH AND HUMAN SERVICES 
NATIONAL INSTITUTES OF HEALTH 
NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES 
(TRANSFER OF FUNDS) 
Of the amount provided by the Continuing Appropriations Reso-
lution, 2007 (division B of Public Law 109–289, as amended by 
Public Law 110–5) for ‘‘National Institute of Allergy and Infectious 
Diseases’’, $49,500,000 shall be transferred to ‘‘Public Health and 
Social Services Emergency Fund’’ to carry out activities relating 
to advanced research and development as provided by section 319L 
of the Public Health Service Act. 
OFFICE OF THE DIRECTOR 
(TRANSFER OF FUNDS) 
Of the amount provided by the Continuing Appropriations Reso-
lution, 2007 (division B of Public Law 109–289, as amended by 
Public Law 110–5) for ‘‘Office of the Director’’, $49,500,000 shall 
be transferred to ‘‘Public Health and Social Services Emergency 
Fund’’ to carry out activities relating to advanced research and 
development as provided by section 319L of the Public Health 
Service Act. 
NATIONAL COUNCIL ON DISABILITY 
SALARIES AND EXPENSES 
For an additional amount for ‘‘Salaries and Expenses’’, 
$300,000, to remain available until expended, for necessary 
expenses related to the requirements of the Post-Katrina Emergency 
Management Reform Act of 2006, as enacted by the Department 
of Homeland Security Appropriations Act, 2007 (Public Law 109–
295).
H. R. 2206—67
GENERAL PROVISIONS—THIS CHAPTER 
(INCLUDING TRANSFERS OF FUNDS AND RESCISSIONS) 
SEC. 6601. Section 20602 of the Continuing Appropriations 
Resolution, 2007 (division B of Public Law 109–289, as amended 
by Public Law 110–5) is amended by inserting the following after 
‘‘$5,000,000’’: ‘‘(together with an additional $7,000,000 which shall 
be transferred by the Pension Benefit Guaranty Corporation as 
an authorized administrative cost), to remain available through 
September 30, 2008,’’. 
SEC. 6602. (a) None of the funds available to the Mine Safety 
and Health Administration under the Continuing Appropriations 
Resolution, 2007 (division B of Public Law 109–289, as amended 
by Public Law 110–5) shall be used to enter into or carry out 
a contract for the performance by a contractor of any operations 
or services pursuant to the public-private competitions conducted 
under Office of Management and Budget Circular A–76. 
(b) Hereafter, Federal employees at the Mine Safety and Health 
Administration shall be classified as inherently governmental for 
the purpose of the Federal Activities Inventory Reform Act of 1998 
(31 U.S.C. 501 note). 
SEC. 6603. Section 20607 of the Continuing Appropriations 
Resolution, 2007 (division B of Public Law 109–289, as amended 
by Public Law 110–5) is amended by inserting ‘‘of which $9,666,000 
shall be for the Women’s Bureau,’’ after ‘‘for child labor activities,’’. 
SEC. 6604. Of the amount provided for ‘‘Department of Health 
and Human Services, Health Resources and Services Administra-
tion, Health Resources and Services’’ in the Continuing Appropria-
tions Resolution, 2007 (division B of Public Law 109–289, as 
amended by Public Law 110–5), $23,000,000 shall be for Poison 
Control Centers. 
SEC. 6605. From the amounts made available by the Continuing 
Appropriations Resolution, 2007 (division B of Public Law 109–
289, as amended by Public Law 110–5) for the Office of the Sec-
retary, General Departmental Management under the Department 
of Health and Human Services, $500,000 are rescinded. 
SEC. 6606. Section 20625(b)(1) of the Continuing Appropriations 
Resolution, 2007 (division B of Public Law 109–289, as amended 
by Public Law 110–5) is amended by—
(1) 
striking 
‘‘$7,172,994,000’’ 
and 
inserting 
‘‘$7,176,431,000’’; 
(2) amending subparagraph (A) to read as follows: ‘‘(A) 
$5,454,824,000 shall be for basic grants under section 1124 
of the Elementary and Secondary Education Act of 1965 
(ESEA), of which up to $3,437,000 shall be available to the 
Secretary of Education on October 1, 2006, to obtain annually 
updated educational-agency-level census poverty data from the 
Bureau of the Census;’’; and 
(3) amending subparagraph (C) to read as follows: ‘‘(C) 
not to exceed $2,352,000 may be available for section 1608 
of the ESEA and for a clearinghouse on comprehensive school 
reform under part D of title V of the ESEA;’’. 
SEC. 6607. The provision in the first proviso under the heading 
‘‘Rehabilitation Services and Disability Research’’ in the Department 
of Education Appropriations Act, 2006, relating to alternative
H. R. 2206—68
financing programs under section 4(b)(2)(D) of the Assistive Tech-
nology Act of 1998 shall not apply to funds appropriated by the 
Continuing Appropriations Resolution, 2007. 
SEC. 6608. From the amounts made available by the Continuing 
Appropriations Resolution, 2007 (division B of Public Law 109–
289, as amended by Public Law 110–5) for administrative expenses 
of the Department of Education, $500,000 are rescinded: Provided, 
That such reduction shall not apply to funds available to the Office 
for Civil Rights and the Office of the Inspector General. 
SEC. 6609. Notwithstanding sections 20639 and 20640 of the 
Continuing Appropriations Resolution, 2007, as amended by section 
2 of the Revised Continuing Appropriations Resolution, 2007 (Public 
Law 110–5), the Chief Executive Officer of the Corporation for 
National and Community Service may transfer an amount of not 
more than $1,360,000 from the account under the heading ‘‘National 
and Community Service Programs, Operating Expenses’’ under the 
heading ‘‘Corporation for National and Community Service’’, to the 
account under the heading ‘‘Salaries and Expenses’’ under the 
heading ‘‘Corporation for National and Community Service’’. 
SEC. 6610. (a) Section 1310.12(a) of title 45, Code of Federal 
Regulations, shall take effect 30 days after the date of enactment 
of this Act. 
(b)(1) Not later than 60 days after the National Highway Traffic 
Safety Administration of the Department of Transportation submits 
its study on occupant protection on Head Start transit vehicles 
(related to Government Accountability Office report GAO–06–767R), 
the Secretary of Health and Human Services shall review and 
shall revise as necessary the allowable alternate vehicle standards 
described in that part 1310 (or any corresponding similar regulation 
or ruling) relating to allowable alternate vehicles used to transport 
children for a Head Start program. In making any such revision, 
the Secretary shall revise the standards to be consistent with the 
findings contained in such study, including making a determination 
on the exemption of such a vehicle from Federal seat spacing 
requirements, and Federal supporting seating requirements related 
to compartmentalization, if such vehicle meets all other applicable 
Federal motor vehicle safety standards, including standards for 
seating systems, occupant crash protection, seat belt assemblies, 
and child restraint anchorage systems consistent with that part 
1310 (or any corresponding similar regulation or ruling). 
(2) Notwithstanding subsection (a), until such date as the Sec-
retary of Health and Human Services completes the review and 
any necessary revision specified in paragraph (1), the provisions 
of section 1310.12(a) relating to Federal seat spacing requirements, 
and 
Federal 
supporting 
seating 
requirements 
related 
to 
compartmentalization, for allowable alternate vehicles used to 
transport children for a Head Start program, shall not apply to 
such a vehicle if such vehicle meets all other applicable Federal 
motor vehicle safety standards, as described in paragraph (1). 
SEC. 6611. (a)(1) Section 3(37)(G) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1002(37)(G)) (as amended 
by section 1106(a) of the Pension Protection Act of 2006) is 
amended—
(A) in clause (i)(II)(aa), by striking ‘‘for each of the 3 plan 
years immediately before the date of the enactment of the 
Pension Protection Act of 2006,’’ and inserting ‘‘for each of 
the 3 plan years immediately preceding the first plan year
H. R. 2206—69
for which the election under this paragraph is effective with 
respect to the plan,’’; 
(B) in clause (ii), by striking ‘‘starting with the first plan 
year ending after the date of the enactment of the Pension 
Protection Act of 2006’’ and inserting ‘‘starting with any plan 
year beginning on or after January 1, 1999, and ending before 
January 1, 2008, as designated by the plan in the election 
made under clause (i)(II)’’; and 
(C) by adding at the end the following new clause: 
‘‘(vii) For purposes of this Act and the Internal Revenue Code 
of 1986, a plan making an election under this subparagraph shall 
be treated as maintained pursuant to a collective bargaining agree-
ment if a collective bargaining agreement, expressly or otherwise, 
provides for or permits employer contributions to the plan by one 
or more employers that are signatory to such agreement, or partici-
pation in the plan by one or more employees of an employer that 
is signatory to such agreement, regardless of whether the plan 
was created, established, or maintained for such employees by 
virtue of another document that is not a collective bargaining agree-
ment.’’. 
(2) Paragraph (6) of section 414(f) of the Internal Revenue 
Code of 1986 (relating to election with regard to multiemployer 
status) (as amended by section 1106(b) of the Pension Protection 
Act of 2006) is amended—
(A) in subparagraph (A)(ii)(I), by striking ‘‘for each of the 
3 plan years immediately before the date of enactment of the 
Pension Protection Act of 2006,’’ and inserting ‘‘for each of 
the 3 plan years immediately preceding the first plan year 
for which the election under this paragraph is effective with 
respect to the plan,’’; 
(B) in subparagraph (B), by striking ‘‘starting with the 
first plan year ending after the date of the enactment of the 
Pension Protection Act of 2006’’ and inserting ‘‘starting with 
any plan year beginning on or after January 1, 1999, and 
ending before January 1, 2008, as designated by the plan 
in the election made under subparagraph (A)(ii)’’; and 
(C) by adding at the end the following new subparagraph: 
‘‘(F) MAINTENANCE
UNDER
COLLECTIVE
BARGAINING 
AGREEMENT.—For purposes of this title and the Employee 
Retirement Income Security Act of 1974, a plan making 
an election under this paragraph shall be treated as main-
tained pursuant to a collective bargaining agreement if 
a collective bargaining agreement, expressly or otherwise, 
provides for or permits employer contributions to the plan 
by one or more employers that are signatory to such agree-
ment, or participation in the plan by one or more employees 
of an employer that is signatory to such agreement, regard-
less of whether the plan was created, established, or main-
tained for such employees by virtue of another document 
that is not a collective bargaining agreement.’’. 
(b)(1) Clause (vi) of section 3(37)(G) of the Employee Retirement 
Income Security Act of 1974 (as amended by section 1106(a) of 
the Pension Protection Act of 2006) is amended by striking ‘‘if 
it is a plan—’’ and all that follows and inserting the following: 
‘‘if it is a plan sponsored by an organization which is described 
in section 501(c)(5) of the Internal Revenue Code of 1986 and
H. R. 2206—70
exempt from tax under section 501(a) of such Code and which 
was established in Chicago, Illinois, on August 12, 1881.’’. 
(2) Subparagraph (E) of section 414(f)(6) of the Internal Rev-
enue Code of 1986 (as amended by section 1106(b) of the Pension 
Protection Act of 2006) is amended by striking ‘‘if it is a plan—
’’ and all that follows and inserting the following: ‘‘if it is a plan 
sponsored by an organization which is described in section 501(c)(5) 
and exempt from tax under section 501(a) and which was estab-
lished in Chicago, Illinois, on August 12, 1881.’’. 
(c) The amendments made by this section shall take effect 
as if included in section 1106 of the Pension Protection Act of 
2006. 
SEC. 6612. (a) Subclause (III) of section 420(f)(2)(E)(i) of the 
Internal Revenue Code of 1986 is amended by striking ‘‘subsection 
(c)(2)(E)(ii)(II)’’ and inserting ‘‘subsection (c)(3)(E)(ii)(II)’’. 
(b) Section 420(e)(2)(B) of the Internal Revenue Code of 1986 
is amended by striking ‘‘funding shortfall’’ and inserting ‘‘funding 
target’’. 
(c) The amendments made by this section shall take effect 
as if included in the provisions of the Pension Protection Act of 
2006 to which they relate. 
SEC. 6613. (a) Subparagraph (A) of section 420(c)(3) of the 
Internal Revenue Code of 1986 is amended by striking ‘‘transfer.’’ 
and inserting ‘‘transfer or, in the case of a transfer which involves 
a plan maintained by an employer described in subsection 
(f)(2)(E)(i)(III), if the plan meets the requirements of subsection 
(f)(2)(D)(i)(II).’’. 
(b) The amendment made by subsection (a) shall apply to 
transfers after the date of the enactment of this Act. 
SEC. 6614. (a) Section 402(i)(1) of the Pension Protection Act 
of 2006 is amended by striking ‘‘December 28, 2007’’ and inserting 
‘‘January 1, 2008’’. 
(b) The amendment made by subsection (a) shall take effect 
as if included in section 402 of the Pension Protection Act of 
2006. 
SEC. 6615. (a) Section 402(a)(2) of the Pension Protection Act 
of 2006 is amended by inserting ‘‘and by using, in determining 
the funding target for each of the 10 plan years during such period, 
an interest rate of 8.25 percent (rather than the segment rates 
calculated on the basis of the corporate bond yield curve)’’ after 
‘‘such plan year’’. 
(b) The amendment made by this section shall take effect 
as if included in the provisions of the Pension Protection Act of 
2006 to which such amendment relates. 
CHAPTER 7
LEGISLATIVE BRANCH 
HOUSE OF REPRESENTATIVES 
PAYMENT TO WIDOWS AND HEIRS OF DECEASED MEMBERS OF 
CONGRESS 
For payment to Gloria W. Norwood, widow of Charles W. Nor-
wood, Jr., late a Representative from the State of Georgia, $165,200.
H. R. 2206—71
For payment to James McDonald, Jr., widower of Juanita 
Millender-McDonald, late a Representative from the State of Cali-
fornia, $165,200. 
GENERAL PROVISION—THIS CHAPTER 
SEC. 6701. (a) There is established in the Office of the Architect 
of the Capitol the position of Chief Executive Officer for Visitor 
Services (in this section referred to as the ‘‘Chief Executive Officer’’), 
who shall be appointed by the Architect of the Capitol. 
(b) The Chief Executive Officer shall be responsible for the 
operation and management of the Capitol Visitor Center, subject 
to the direction of the Architect of the Capitol. In carrying out 
these responsibilities, the Chief Executive Officer shall report 
directly to the Architect of the Capitol and shall be subject to 
policy review and oversight by the Committee on Rules and 
Administration of the Senate and the Committee on House Adminis-
tration of the House of Representatives. 
(c) The Chief Executive Officer shall be paid at an annual 
rate equal to the annual rate of pay for the Chief Operating Officer 
of the Office of the Architect of the Capitol. 
(d) This section shall apply with respect to fiscal year 2007 
and each succeeding fiscal year. 
CHAPTER 8
GENERAL PROVISIONS—THIS CHAPTER 
TECHNICAL AMENDMENT 
SEC. 6801. (a) Notwithstanding any other provision of law, 
subsection (c) under the heading ‘‘Assistance for the Independent 
States of the Former Soviet Union’’ in Public Law 109–102, shall 
not apply to funds appropriated by the Continuing Appropriations 
Resolution, 2007 (Public Law 109–289, division B) as amended 
by Public Laws 109–369, 109–383, and 110–5. 
(b) Section 534(k) of the Foreign Operations, Export Financing, 
and Related Programs Appropriations Act, 2006 (Public Law 109–
102) is amended, in the second proviso, by inserting after ‘‘sub-
section (b) of that section’’ the following: ‘‘and the requirement 
that a majority of the members of the board of directors be United 
States citizens provided in subsection (d)(3)(B) of that section’’. 
(c) Subject to section 101(c)(2) of the Continuing Appropriations 
Resolution, 2007 (division B of Public Law 109–289, as amended 
by Public Law 110–5), the amount of funds appropriated for ‘‘For-
eign Military Financing Program’’ pursuant to such Resolution shall 
be construed to be the total of the amount appropriated for such 
program by section 20401 of that Resolution and the amount made 
available for such program by section 591 of the Foreign Operations, 
Export Financing, and Related Programs Appropriations Act, 2006 
(Public Law 109–102) which is made applicable to the fiscal year 
2007 by the provisions of such Resolution. 
SEC. 6802. Notwithstanding any provision of title I of division 
B of the Continuing Appropriations Resolution, 2007 (division B 
of Public Law 109–289, as amended by Public Laws 109–369, 109–
383, and 110–5), the dollar amount limitation of the first proviso 
under the heading, ‘‘Administration of Foreign Affairs, Diplomatic 
and Consular Programs’’, in title IV of the Science, State, Justice,
H. R. 2206—72
Commerce, and Related Agencies Appropriations Act, 2006 (Public 
Law 109–108; 119 Stat. 2319) shall not apply to funds appropriated 
under such heading for fiscal year 2007. 
CHAPTER 9
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 
OFFICE OF FEDERAL HOUSING ENTERPRISE OVERSIGHT 
SALARIES AND EXPENSES 
(INCLUDING TRANSFER OF FUNDS) 
For an additional amount to carry out the Federal Housing 
Enterprises Financial Safety and Soundness Act of 1992, 
$6,150,000, to remain available until expended, to be derived from 
the Federal Housing Enterprises Oversight Fund and to be subject 
to the same terms and conditions pertaining to funds provided 
under this heading in Public Law 109–115: Provided, That not 
to exceed the total amount provided for these activities for fiscal 
year 2007 shall be available from the general fund of the Treasury 
to the extent necessary to incur obligations and make expenditures 
pending the receipt of collections to the Fund: Provided further, 
That the general fund amount shall be reduced as collections are 
received during the fiscal year so as to result in a final appropriation 
from the general fund estimated at not more than $0. 
GENERAL PROVISIONS—THIS CHAPTER 
SEC. 6901. (a) Hereafter, funds limited or appropriated for 
the Department of Transportation may be obligated or expended 
to grant authority to a Mexico-domiciled motor carrier to operate 
beyond United States municipalities and commercial zones on the 
United States-Mexico border only to the extent that—
(1) granting such authority is first tested as part of a 
pilot program; 
(2) such pilot program complies with the requirements 
of section 350 of Public Law 107–87 and the requirements 
of section 31315(c) of title 49, United States Code, related 
to pilot programs; and 
(3) simultaneous and comparable authority to operate 
within Mexico is made available to motor carriers domiciled 
in the United States. 
(b) Prior to the initiation of the pilot program described in 
subsection (a) in any fiscal year—
(1) the Inspector General of the Department of Transpor-
tation shall transmit to Congress and the Secretary of Transpor-
tation a report verifying compliance with each of the require-
ments of subsection (a) of section 350 of Public Law 107–
87, including whether the Secretary of Transportation has 
established sufficient mechanisms to apply Federal motor car-
rier safety laws and regulations to motor carriers domiciled 
in Mexico that are granted authority to operate beyond the 
United States municipalities and commercial zones on the 
United States-Mexico border and to ensure compliance with 
such laws and regulations; and 
(2) the Secretary of Transportation shall—
H. R. 2206—73
(A) take such action as may be necessary to address 
any issues raised in the report of the Inspector General 
under subsection (b)(1) and submit a report to Congress 
detailing such actions; and 
(B) publish in the Federal Register, and provide suffi-
cient opportunity for public notice and comment—
(i) comprehensive data and information on the pre-
authorization safety audits conducted before and after 
the date of enactment of this Act of motor carriers 
domiciled in Mexico that are granted authority to 
operate beyond the United States municipalities and 
commercial zones on the United States-Mexico border; 
(ii) specific measures to be required to protect the 
health and safety of the public, including enforcement 
measures and penalties for noncompliance; 
(iii) specific measures to be required to ensure 
compliance with section 391.11(b)(2) and section 
365.501(b) of title 49, Code of Federal Regulations; 
(iv) specific standards to be used to evaluate the 
pilot program and compare any change in the level 
of motor carrier safety as a result of the pilot program; 
and 
(v) a list of Federal motor carrier safety laws and 
regulations, including the commercial drivers license 
requirements, for which the Secretary of Transpor-
tation will accept compliance with a corresponding 
Mexican law or regulation as the equivalent to compli-
ance with the United States law or regulation, 
including for each law or regulation an analysis as 
to how the corresponding United States and Mexican 
laws and regulations differ. 
(c) During and following the pilot program described in sub-
section (a), the Inspector General of the Department of Transpor-
tation shall monitor and review the conduct of the pilot program 
and submit to Congress and the Secretary of Transportation an 
interim report, 6 months after the commencement of the pilot 
program, and a final report, within 60 days after the conclusion 
of the pilot program. Such reports shall address whether—
(1) the Secretary of Transportation has established suffi-
cient mechanisms to determine whether the pilot program is 
having any adverse effects on motor carrier safety; 
(2) Federal and State monitoring and enforcement activities 
are sufficient to ensure that participants in the pilot program 
are in compliance with all applicable laws and regulations; 
and 
(3) the pilot program consists of a representative and ade-
quate sample of Mexico-domiciled carriers likely to engage in 
cross-border operations beyond United States municipalities 
and commercial zones on the United States-Mexico border. 
(d) In the event that the Secretary of Transportation in any 
fiscal year seeks to grant operating authority for the purpose of 
initiating cross-border operations beyond United States municipali-
ties and commercial zones on the United States-Mexico border 
either with Mexico-domiciled motor coaches or Mexico-domiciled 
commercial motor vehicles carrying placardable quantities of haz-
ardous materials, such activities shall be initiated only after the 
conclusion of a separate pilot program limited to vehicles of the
H. R. 2206—74
pertinent type. Each such separate pilot program shall follow the 
same requirements and processes stipulated under subsections (a) 
through (c) of this section and shall be planned, conducted and 
evaluated in concert with the Department of Homeland Security 
or its Inspector General, as appropriate, so as to address any 
and all security concerns associated with such cross-border oper-
ations. 
SEC. 6902. Funds provided for the ‘‘National Transportation 
Safety Board, Salaries and Expenses’’ in section 21031 of the Con-
tinuing Appropriations Resolution, 2007 (division B of Public Law 
109–289, as amended by Public Law 110–5) include amounts nec-
essary to make lease payments due in fiscal year 2007 only, on 
an obligation incurred in 2001 under a capital lease. 
SEC. 6903. Section 21033 of the Continuing Appropriations 
Resolution, 2007 (division B of Public Law 109–289, as amended 
by Public Law 110–5) is amended by adding after the second proviso: 
‘‘: Provided further, That paragraph (2) under such heading in 
Public Law 109–115 (119 Stat. 2441) shall be funded at 
$149,300,000, but additional section 8 tenant protection rental 
assistance costs may be funded in 2007 by using unobligated bal-
ances, notwithstanding the purposes for which such amounts were 
appropriated, including recaptures and carryover, remaining from 
funds appropriated to the Department of Housing and Urban 
Development under this heading, the heading ‘Annual Contributions 
for Assisted Housing’, the heading ‘Housing Certificate Fund’, and 
the heading ‘Project-Based Rental Assistance’ for fiscal year 2006 
and prior fiscal years: Provided further, That paragraph (3) under 
such heading in Public Law 109–115 (119 Stat. 2441) shall be 
funded at $47,500,000: Provided further, That paragraph (4) under 
such heading in Public Law 109–115 (119 Stat. 2441) shall be 
funded at $5,900,000: Provided further, That paragraph (5) under 
such heading in Public Law 109–115 (119 Stat. 2441) shall be 
funded at $1,281,100,000, of which $1,251,100,000 shall be allocated 
for the calendar year 2007 funding cycle on a pro rata basis to 
public housing agencies based on the amount public housing agen-
cies were eligible to receive in calendar year 2006, and of which 
up to $30,000,000 shall be available to the Secretary to allocate 
to public housing agencies that need additional funds to administer 
their section 8 programs, with up to $20,000,000 to be for fees 
associated with section 8 tenant protection rental assistance’’. 
SEC. 6904. Section 232(b) of the Departments of Veterans 
Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 2001 (Public Law 106–377) is amended 
to read as follows: 
‘‘(b) APPLICABILITY.—In the case of any dwelling unit that, 
upon the date of the enactment of this Act, is assisted under 
a housing assistance payment contract under section 8(o)(13) as 
in effect before such enactment, or under section 8(d)(2) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(d)(2)) as in 
effect before the enactment of the Quality Housing and Work 
Responsibility Act of 1998 (title V of Public Law 105–276), assist-
ance may be renewed or extended under such section 8(o)(13), 
as amended by subsection (a), provided that the initial contract 
term and rent of such renewed or extended assistance shall be 
determined pursuant to subparagraphs (F) and (H), and subpara-
graphs (C) and (D) of such section shall not apply to such extensions 
or renewals.’’.
H. R. 2206—75
TITLE 
VII—ELIMINATION 
OF 
SCHIP 
SHORTFALL 
AND 
OTHER 
HEALTH 
MATTERS 
DEPARTMENT OF HEALTH AND HUMAN SERVICES 
CENTERS FOR MEDICARE AND MEDICAID SERVICES STATE 
CHILDREN’S HEALTH INSURANCE FUND 
For an additional amount to provide additional allotments to 
remaining shortfall States under section 2104(h)(4) of the Social 
Security Act, as inserted by section 6001, such sums as may be 
necessary, but not to exceed $650,000,000 for fiscal year 2007, 
to remain available until expended. 
GENERAL PROVISIONS—THIS TITLE 
SEC. 7001. (a) ELIMINATION OF REMAINDER OF SCHIP FUNDING 
SHORTFALLS, TIERED MATCH, AND OTHER LIMITATION ON EXPENDI-
TURES.—Section 2104(h) of the Social Security Act (42 U.S.C. 
1397dd(h)), as added by section 201(a) of the National Institutes 
of Health Reform Act of 2006 (Public Law 109–482), is amended—
(1) in the heading for paragraph (2), by striking 
‘‘REMAINDER OF REDUCTION’’ and inserting ‘‘PART’’; and 
(2) by striking paragraph (4) and inserting the following: 
‘‘(4) ADDITIONAL
AMOUNTS
TO
ELIMINATE
REMAINDER
OF 
FISCAL YEAR 2007 FUNDING SHORTFALLS.—
‘‘(A) IN
GENERAL.—From the amounts provided in 
advance in appropriations Acts, the Secretary shall allot 
to each remaining shortfall State described in subpara-
graph (B) such amount as the Secretary determines will 
eliminate the estimated shortfall described in such 
subparagraph for the State for fiscal year 2007. 
‘‘(B) REMAINING
SHORTFALL
STATE
DESCRIBED.—For 
purposes of subparagraph (A), a remaining shortfall State 
is a State with a State child health plan approved under 
this title for which the Secretary estimates, on the basis 
of the most recent data available to the Secretary as of 
the date of the enactment of this paragraph, that the 
projected Federal expenditures under such plan for the 
State for fiscal year 2007 will exceed the sum of—
‘‘(i) the amount of the State’s allotments for each 
of fiscal years 2005 and 2006 that will not be expended 
by the end of fiscal year 2006; 
‘‘(ii) the amount of the State’s allotment for fiscal 
year 2007; and 
‘‘(iii) the amounts, if any, that are to be redistrib-
uted to the State during fiscal year 2007 in accordance 
with paragraphs (1) and (2).’’. 
(b) CONFORMING AMENDMENTS.—Section 2104(h) of such Act 
(42 U.S.C. 1397dd(h)) (as so added), is amended—
(1) in paragraph (1)(B), by striking ‘‘subject to paragraph 
(4)(B) and’’; 
(2) in paragraph (2)(B), by striking ‘‘subject to paragraph 
(4)(B) and’’;
H. R. 2206—76
(3) in paragraph (5)(A), by striking ‘‘and (3)’’ and inserting 
‘‘(3), and (4)’’; and 
(4) in paragraph (6)—
(A) in the first sentence—
(i) by inserting ‘‘or allotted’’ after ‘‘redistributed’’; 
and 
(ii) by inserting ‘‘or allotments’’ after ‘‘redistribu-
tions’’; and 
(B) by striking ‘‘and (3)’’ and inserting ‘‘(3), and (4)’’. 
SEC. 7002. (a) PROHIBITION.—
(1) LIMITATION
ON
SECRETARIAL
AUTHORITY.—Notwith-
standing any other provision of law, the Secretary of Health 
and Human Services shall not, prior to the date that is 1 
year after the date of enactment of this Act, take any action 
(through promulgation of regulation, issuance of regulatory 
guidance, or other administrative action) to—
(A) finalize or otherwise implement provisions con-
tained in the proposed rule published on January 18, 2007, 
on pages 2236 through 2248 of volume 72, Federal Register 
(relating to parts 433, 447, and 457 of title 42, Code of 
Federal Regulations); 
(B) promulgate or implement any rule or provisions 
similar to the provisions described in subparagraph (A) 
pertaining to the Medicaid program established under title 
XIX of the Social Security Act or the State Children’s 
Health Insurance Program established under title XXI of 
such Act; or 
(C) promulgate or implement any rule or provisions 
restricting payments for graduate medical education under 
the Medicaid program. 
(2) CONTINUATION
OF
OTHER
SECRETARIAL
AUTHORITY.—
The Secretary of Health and Human Service shall not be prohib-
ited during the period described in paragraph (1) from taking 
any action (through promulgation of regulation, issuance of 
regulatory guidance, or other administrative action) to enforce 
a provision of law in effect as of the date of enactment of 
this Act with respect to the Medicaid program or the State 
Children’s Health Insurance Program, or to promulgate or 
implement a new rule or provision during such period with 
respect to such programs, other than a rule or provision 
described in paragraph (1) and subject to the prohibition set 
forth in that paragraph. 
(b) REQUIREMENT FOR USE OF TAMPER-RESISTANT PRESCRIPTION 
PADS UNDER THE MEDICAID PROGRAM.—
(1) IN
GENERAL.—Section 1903(i) of the Social Security 
Act (42 U.S.C. 1396b(i)) is amended—
(A) by striking ‘‘or’’ at the end of paragraph (21); 
(B) by striking the period at the end of paragraph 
(22) and inserting ‘‘; or’’; and 
(C) by inserting after paragraph (22) the following 
new paragraph: 
‘‘(23) with respect to amounts expended for medical assist-
ance for covered outpatient drugs (as defined in section 
1927(k)(2)) for which the prescription was executed in written 
(and non-electronic) form unless the prescription was executed 
on a tamper-resistant pad.’’.
H. R. 2206—77
(2) EFFECTIVE DATE.—The amendments made by paragraph 
(1) shall apply to prescriptions executed after September 30, 
2007. 
(c) EXTENSION OF CERTAIN PHARMACY PLUS WAIVERS.—
(1) AUTHORITY TO CONTINUE TO OPERATE WAIVERS.—Not-
withstanding any other provision of law, any State that is 
operating a Pharmacy Plus waiver described in paragraph (2) 
which would otherwise expire on June 30, 2007, may elect 
to continue to operate the waiver through December 31, 2009, 
and if a State elects to continue to operate such a waiver, 
the Secretary of Health and Human Services shall approve 
the continuation of the waiver through December 31, 2009. 
(2) PHARMACY PLUS WAIVER DESCRIBED.—For purposes of 
paragraph (1), a Pharmacy Plus waiver described in this para-
graph is a waiver approved by the Secretary of Health and 
Human Services under the authority of section 1115 of the 
Social Security Act (42 U.S.C. 1315) that provides coverage 
for prescription drugs for individuals who have attained age 
65 and whose family income does not exceed 200 percent of 
the poverty line (as defined in section 2110(c)(5) of such Act 
(42 U.S.C. 1397jj(c)(5))). 
TITLE VIII—FAIR MINIMUM WAGE AND 
TAX RELIEF 
Subtitle A—Fair Minimum Wage 
SEC. 8101. SHORT TITLE. 
This subtitle may be cited as the ‘‘Fair Minimum Wage Act 
of 2007’’. 
SEC. 8102. MINIMUM WAGE. 
(a) IN GENERAL.—Section 6(a)(1) of the Fair Labor Standards 
Act of 1938 (29 U.S.C. 206(a)(1)) is amended to read as follows: 
‘‘(1) except as otherwise provided in this section, not less 
than—
‘‘(A) $5.85 an hour, beginning on the 60th day after 
the date of enactment of the Fair Minimum Wage Act 
of 2007; 
‘‘(B) $6.55 an hour, beginning 12 months after that 
60th day; and 
‘‘(C) $7.25 an hour, beginning 24 months after that 
60th day;’’. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall take effect 60 days after the date of enactment of this Act. 
SEC. 8103. APPLICABILITY OF MINIMUM WAGE TO AMERICAN SAMOA 
AND THE COMMONWEALTH OF THE NORTHERN MARIANA 
ISLANDS. 
(a) IN GENERAL.—Section 6 of the Fair Labor Standards Act 
of 1938 (29 U.S.C. 206) shall apply to American Samoa and the 
Commonwealth of the Northern Mariana Islands. 
(b) TRANSITION.—Notwithstanding subsection (a)—
(1) the minimum wage applicable to the Commonwealth 
of the Northern Mariana Islands under section 6(a)(1) of the
H. R. 2206—78
Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) shall 
be—
(A) $3.55 an hour, beginning on the 60th day after 
the date of enactment of this Act; and 
(B) increased by $0.50 an hour (or such lesser amount 
as may be necessary to equal the minimum wage under 
section 6(a)(1) of such Act), beginning 1 year after the 
date of enactment of this Act and each year thereafter 
until the minimum wage applicable to the Commonwealth 
of the Northern Mariana Islands under this paragraph 
is equal to the minimum wage set forth in such section; 
and 
(2) the minimum wage applicable to American Samoa under 
section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 
U.S.C. 206(a)(1)) shall be—
(A) the applicable wage rate in effect for each industry 
and classification under section 697 of title 29, Code of 
Federal Regulations, on the date of enactment of this Act; 
(B) increased by $0.50 an hour, beginning on the 60th 
day after the date of enactment of this Act; and 
(C) increased by $0.50 an hour (or such lesser amount 
as may be necessary to equal the minimum wage under 
section 6(a)(1) of such Act), beginning 1 year after the 
date of enactment of this Act and each year thereafter 
until the minimum wage applicable to American Samoa 
under this paragraph is equal to the minimum wage set 
forth in such section. 
(c) CONFORMING AMENDMENTS.—
(1) IN GENERAL.—The Fair Labor Standards Act of 1938 
is amended—
(A) by striking sections 5 and 8; and 
(B) in section 6(a), by striking paragraph (3) and 
redesignating paragraphs (4) and (5) as paragraphs (3) 
and (4), respectively. 
(2) EFFECTIVE DATE.—The amendments made by this sub-
section shall take effect 60 days after the date of enactment 
of this Act. 
SEC. 8104. STUDY ON PROJECTED IMPACT. 
(a) STUDY.—Beginning on the date that is 60 days after the 
date of enactment of this Act, the Secretary of Labor shall, through 
the Bureau of Labor Statistics, conduct a study to—
(1) assess the impact of the wage increases required by 
this Act through such date; and 
(2) project the impact of any further wage increase, 
on living standards and rates of employment in American Samoa 
and the Commonwealth of the Northern Mariana Islands. 
(b) REPORT.—Not later than the date that is 8 months after 
the date of enactment of this Act, the Secretary of Labor shall 
transmit to Congress a report on the findings of the study required 
by subsection (a).
H. R. 2206—79
Subtitle B—Small Business Tax Incentives 
SEC. 8201. SHORT TITLE; AMENDMENT OF CODE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This subtitle may be cited as the ‘‘Small 
Business and Work Opportunity Tax Act of 2007’’. 
(b) AMENDMENT OF 1986 CODE.—Except as otherwise expressly 
provided, whenever in this subtitle 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 of this subtitle 
is as follows:
Sec. 8201. Short title; amendment of Code; table of contents. 
PART 1—SMALL BUSINESS TAX RELIEF PROVISIONS 
SUBPART A—GENERAL PROVISIONS 
Sec. 8211. Extension and modification of work opportunity tax credit. 
Sec. 8212. Extension and increase of expensing for small business. 
Sec. 8213. Determination of credit for certain taxes paid with respect to employee 
cash tips. 
Sec. 8214. Waiver of individual and corporate alternative minimum tax limits on 
work opportunity credit and credit for taxes paid with respect to em-
ployee cash tips. 
Sec. 8215. Family business tax simplification. 
SUBPART B—GULF OPPORTUNITY ZONE TAX INCENTIVES 
Sec. 8221. Extension of increased expensing for qualified section 179 Gulf Oppor-
tunity Zone property. 
Sec. 8222. Extension and expansion of low-income housing credit rules for buildings 
in the GO Zones. 
Sec. 8223. Special tax-exempt bond financing rule for repairs and reconstructions 
of residences in the GO Zones. 
Sec. 8224. GAO study of practices employed by State and local governments in allo-
cating and utilizing tax incentives provided pursuant to the Gulf Oppor-
tunity Zone Act of 2005. 
SUBPART C—SUBCHAPTER S PROVISIONS 
Sec. 8231. Capital gain of S corporation not treated as passive investment income. 
Sec. 8232. Treatment of bank director shares. 
Sec. 8233. Special rule for bank required to change from the reserve method of ac-
counting on becoming S corporation. 
Sec. 8234. Treatment of the sale of interest in a qualified subchapter S subsidiary. 
Sec. 8235. Elimination of all earnings and profits attributable to pre-1983 years for 
certain corporations. 
Sec. 8236. Deductibility of interest expense on indebtedness incurred by an electing 
small business trust to acquire S corporation stock. 
PART 2—REVENUE PROVISIONS 
Sec. 8241. Increase in age of children whose unearned income is taxed as if par-
ent’s income. 
Sec. 8242. Suspension of certain penalties and interest. 
Sec. 8243. Modification of collection due process procedures for employment tax li-
abilities. 
Sec. 8244. Permanent extension of IRS user fees. 
Sec. 8245. Increase in penalty for bad checks and money orders. 
Sec. 8246. Understatement of taxpayer liability by return preparers. 
Sec. 8247. Penalty for filing erroneous refund claims. 
Sec. 8248. Time for payment of corporate estimated taxes.
H. R. 2206—80
PART 1—SMALL BUSINESS TAX RELIEF 
PROVISIONS 
Subpart A—General Provisions 
SEC. 8211. EXTENSION AND MODIFICATION OF WORK OPPORTUNITY 
TAX CREDIT. 
(a) EXTENSION.—Section 51(c)(4)(B) (relating to termination) 
is amended by striking ‘‘December 31, 2007’’ and inserting ‘‘August 
31, 2011’’. 
(b) INCREASE IN MAXIMUM AGE FOR DESIGNATED COMMUNITY 
RESIDENTS.—
(1) IN GENERAL.—Paragraph (5) of section 51(d) is amended 
to read as follows: 
‘‘(5) DESIGNATED COMMUNITY RESIDENTS.—
‘‘(A) IN
GENERAL.—The term ‘designated community 
resident’ means any individual who is certified by the des-
ignated local agency—
‘‘(i) as having attained age 18 but not age 40 
on the hiring date, and 
‘‘(ii) as having his principal place of abode within 
an empowerment zone, enterprise community, renewal 
community, or rural renewal county. 
‘‘(B) INDIVIDUAL MUST CONTINUE TO RESIDE IN ZONE, 
COMMUNITY, OR
COUNTY.—In the case of a designated 
community resident, the term ‘qualified wages’ shall not 
include wages paid or incurred for services performed while 
the individual’s principal place of abode is outside an 
empowerment 
zone, 
enterprise 
community, 
renewal 
community, or rural renewal county. 
‘‘(C) RURAL RENEWAL COUNTY.—For purposes of this 
paragraph, the term ‘rural renewal county’ means any 
county which—
‘‘(i) is outside a metropolitan statistical area 
(defined as such by the Office of Management and 
Budget), and 
‘‘(ii) during the 5-year periods 1990 through 1994 
and 1995 through 1999 had a net population loss.’’. 
(2) CONFORMING AMENDMENT.—Subparagraph (D) of sec-
tion 51(d)(1) is amended to read as follows: 
‘‘(D) a designated community resident,’’. 
(c) CLARIFICATION OF TREATMENT OF INDIVIDUALS UNDER INDI-
VIDUAL
WORK
PLANS.—Subparagraph (B) of section 51(d)(6) 
(relating to vocational rehabilitation referral) is amended by striking 
‘‘or’’ at the end of clause (i), by striking the period at the end 
of clause (ii) and inserting ‘‘, or’’, and by adding at the end the 
following new clause: 
‘‘(iii) an individual work plan developed and imple-
mented by an employment network pursuant to sub-
section (g) of section 1148 of the Social Security Act 
with respect to which the requirements of such sub-
section are met.’’. 
(d) TREATMENT
OF DISABLED VETERANS UNDER
THE WORK 
OPPORTUNITY TAX CREDIT.—
(1) DISABLED VETERANS TREATED AS MEMBERS OF TARGETED 
GROUP.—
H. R. 2206—81
(A) IN GENERAL.—Subparagraph (A) of section 51(d)(3) 
(relating to qualified veteran) is amended by striking 
‘‘agency as being a member of a family’’ and all that follows 
and inserting ‘‘agency as—
‘‘(i) being a member of a family receiving assistance 
under a food stamp program under the Food Stamp 
Act of 1977 for at least a 3-month period ending during 
the 12-month period ending on the hiring date, or 
‘‘(ii) entitled to compensation for a service-con-
nected disability, and—
‘‘(I) having a hiring date which is not more 
that 1 year after having been discharged or 
released from active duty in the Armed Forces 
of the United States, or 
‘‘(II) having aggregate periods of unemploy-
ment during the 1-year period ending on the hiring 
date which equal or exceed 6 months.’’. 
(B) DEFINITIONS.—Paragraph (3) of section 51(d) is 
amended by adding at the end the following new subpara-
graph: 
‘‘(C) OTHER
DEFINITIONS.—For purposes of subpara-
graph (A), the terms ‘compensation’ and ‘service-connected’ 
have the meanings given such terms under section 101 
of title 38, United States Code.’’. 
(2) INCREASE IN AMOUNT OF WAGES TAKEN INTO ACCOUNT 
FOR
DISABLED
VETERANS.—Paragraph (3) of section 51(b) is 
amended—
(A) by inserting ‘‘($12,000 per year in the case of any 
individual who is a qualified veteran by reason of sub-
section (d)(3)(A)(ii))’’ before the period at the end, and 
(B) by striking ‘‘ONLY FIRST $6,000 OF’’ in the heading 
and inserting ‘‘LIMITATION ON’’. 
(e) EFFECTIVE DATE.—The amendments made by this section 
shall apply to individuals who begin work for the employer after 
the date of the enactment of this Act. 
SEC. 8212. EXTENSION AND INCREASE OF EXPENSING FOR SMALL 
BUSINESS. 
(a) EXTENSION.—Subsections (b)(1), (b)(2), (b)(5), (c)(2), and 
(d)(1)(A)(ii) of section 179 (relating to election to expense certain 
depreciable business assets) are each amended by striking ‘‘2010’’ 
and inserting ‘‘2011’’. 
(b) INCREASE IN LIMITATIONS.—Subsection (b) of section 179 
is amended—
(1) by striking ‘‘$100,000 in the case of taxable years begin-
ning after 2002’’ in paragraph (1) and inserting ‘‘$125,000 in 
the case of taxable years beginning after 2006’’, and 
(2) by striking ‘‘$400,000 in the case of taxable years begin-
ning after 2002’’ in paragraph (2) and inserting ‘‘$500,000 in 
the case of taxable years beginning after 2006’’. 
(c) INFLATION
ADJUSTMENT.—Subparagraph (A) of section 
179(b)(5) is amended—
(1) by striking ‘‘2003’’ and inserting ‘‘2007’’, 
(2) by striking ‘‘$100,000 and $400,000’’ and inserting 
‘‘$125,000 and $500,000’’, and 
(3) by striking ‘‘2002’’ in clause (ii) and inserting ‘‘2006’’.
H. R. 2206—82
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2006. 
SEC. 8213. DETERMINATION OF CREDIT FOR CERTAIN TAXES PAID 
WITH RESPECT TO EMPLOYEE CASH TIPS. 
(a) IN GENERAL.—Subparagraph (B) of section 45B(b)(1) is 
amended by inserting ‘‘as in effect on January 1, 2007, and’’ before 
‘‘determined without regard to’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to tips received for services performed after December 
31, 2006. 
SEC. 8214. WAIVER OF INDIVIDUAL AND CORPORATE ALTERNATIVE 
MINIMUM TAX LIMITS ON WORK OPPORTUNITY CREDIT 
AND CREDIT FOR TAXES PAID WITH RESPECT TO 
EMPLOYEE CASH TIPS. 
(a) ALLOWANCE
AGAINST
ALTERNATIVE
MINIMUM
TAX.—
Subparagraph (B) of section 38(c)(4) is amended by striking ‘‘and’’ 
at the end of clause (i), by inserting a comma at the end of clause 
(ii), and by adding at the end the following new clauses: 
‘‘(iii) the credit determined under section 45B, and 
‘‘(iv) the credit determined under section 51.’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to credits determined under sections 45B and 51 of 
the Internal Revenue Code of 1986 in taxable years beginning 
after December 31, 2006, and to carrybacks of such credits. 
SEC. 8215. FAMILY BUSINESS TAX SIMPLIFICATION. 
(a) IN GENERAL.—Section 761 (defining terms for purposes of 
partnerships) is amended by redesignating subsection (f) as sub-
section (g) and by inserting after subsection (e) the following new 
subsection: 
‘‘(f) QUALIFIED JOINT VENTURE.—
‘‘(1) IN GENERAL.—In the case of a qualified joint venture 
conducted by a husband and wife who file a joint return for 
the taxable year, for purposes of this title—
‘‘(A) such joint venture shall not be treated as a part-
nership, 
‘‘(B) all items of income, gain, loss, deduction, and 
credit shall be divided between the spouses in accordance 
with their respective interests in the venture, and 
‘‘(C) each spouse shall take into account such spouse’s 
respective share of such items as if they were attributable 
to a trade or business conducted by such spouse as a 
sole proprietor. 
‘‘(2) QUALIFIED JOINT VENTURE.—For purposes of paragraph 
(1), the term ‘qualified joint venture’ means any joint venture 
involving the conduct of a trade or business if—
‘‘(A) the only members of such joint venture are a 
husband and wife, 
‘‘(B) both spouses materially participate (within the 
meaning of section 469(h) without regard to paragraph 
(5) thereof) in such trade or business, and 
‘‘(C) both spouses elect the application of this sub-
section.’’. 
(b) NET EARNINGS FROM SELF-EMPLOYMENT.—
(1) Subsection (a) of section 1402 (defining net earnings 
from self-employment) is amended by striking ‘‘, and’’ at the