ered to be made to a section or other provision of the In-
ternal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title, etc. 
TITLE I—AMT RELIEF 
Sec. 101. Extension of alternative minimum tax relief for nonrefundable per-
sonal credits. 
Sec. 102. Extension of increased alternative minimum tax exemption amount. 
TITLE II—ONE-YEAR EXTENDERS 
Subtitle A—Extenders Primarily Affecting Individuals 
Sec. 201. Deduction for State and local sales taxes. 
Sec. 202. Deduction of qualified tuition and related expenses. 
Sec. 203. Treatment of certain dividends of regulated investment companies. 
Sec. 204. Parity in the application of certain limits to mental health benefits. 
Sec. 205. Qualified conservation contributions. 
Sec. 206. Tax-free distributions from individual retirement plans for charitable 
purposes. 
Sec. 207. Deduction for certain expenses of elementary and secondary school 
teachers. 
Sec. 208. Election to include combat pay as earned income for purposes of 
earned income tax credit. 
Sec. 209. Modification of mortgage revenue bonds for veterans. 
Sec. 210. Distributions from retirement plans to individuals called to active 
duty. 
Sec. 211. Stock in RIC for purposes of determining estates of nonresidents not 
citizens. 
Sec. 212. Qualified investment entities. 
Sec. 213. Refundable child credit. 
Sec. 214. State legislators’ travel expenses away from home. 
Subtitle B—Extenders Primarily Affecting Businesses 
Sec. 221. Research credit. 
Sec. 222. Indian employment credit. 
Sec. 223. New markets tax credit. 
Sec. 224. Railroad track maintenance. 
Sec. 225. Fifteen-year straight-line cost recovery for qualified leasehold im-
provements and qualified restaurant property. 
Sec. 226. Seven-year cost recovery period for motorsports racing track facility. 
Sec. 227. Accelerated depreciation for business property on Indian reservation. 
Sec. 228. Expensing of environmental remediation costs. 
Sec. 229. Deduction allowable with respect to income attributable to domestic 
production activities in Puerto Rico. 
Sec. 230. Modification of tax treatment of certain payments to controlling ex-
empt organizations. 
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Sec. 231. Extension and modification of credit to holders of qualified zone 
academy bonds. 
Sec. 232. Tax incentives for investment in the District of Columbia. 
Sec. 233. Extension of economic development credit for American Samoa. 
Sec. 234. Enhanced charitable deduction for contributions of food inventory. 
Sec. 235. Enhanced charitable deduction for contributions of book inventory to 
public schools. 
Sec. 236. Enhanced deduction for qualified computer contributions. 
Sec. 237. Basis adjustment to stock of S corporations making charitable con-
tributions of property. 
Sec. 238. Extension of work opportunity tax credit for Hurricane Katrina em-
ployees. 
Subtitle C—Other Extenders 
Sec. 241. Disclosure for combined employment tax reporting. 
Sec. 242. Disclosure of return information to apprise appropriate officials of 
terrorist activities. 
Sec. 243. Disclosure upon request of information relating to terrorist activities. 
Sec. 244. Disclosure of return information to carry out income contingent re-
payment of student loans. 
Sec. 245. Authority for undercover operations. 
Sec. 246. Increase in limit on cover over of rum excise tax to Puerto Rico and 
the Virgin Islands. 
Sec. 247. Disclosure of return information for certain veterans programs. 
TITLE III—MORTGAGE FORGIVENESS DEBT RELIEF 
Sec. 301. Discharges of indebtedness on principal residence excluded from gross 
income. 
Sec. 302. Long-term extension of deduction for mortgage insurance premiums. 
Sec. 303. Alternative tests for qualifying as cooperative housing corporation. 
Sec. 304. Gain from sale of principal residence allocated to nonqualified use not 
excluded from income. 
TITLE IV—ADMINISTRATIVE PROVISIONS 
Sec. 401. Repeal of authority to enter into private debt collection contracts. 
Sec. 402. Delay of application of withholding requirement on certain govern-
mental payments for goods and services. 
Sec. 403. Clarification of entitlement of Virgin Islands residents to protections 
of limitations on assessment and collection of tax. 
Sec. 404. Revision of tax rules on expatriation. 
Sec. 405. Repeal of suspension of certain penalties and interest. 
Sec. 406. Increase in information return penalties. 
Sec. 407. Unused merchandise drawback. 
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TITLE I—AMT RELIEF 
SEC. 101. EXTENSION OF ALTERNATIVE MINIMUM TAX RE-
LIEF 
FOR 
NONREFUNDABLE 
PERSONAL 
CREDITS. 
(a) IN GENERAL.—Paragraph (2) of section 26(a) 
(relating to special rule for taxable years 2000 through 
2006) is amended— 
(1) by striking ‘‘or 2006’’ and inserting ‘‘2006, 
or 2007’’, and 
(2) by striking ‘‘2006’’ in the heading thereof 
and inserting ‘‘2007’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2006. 
SEC. 102. EXTENSION OF INCREASED ALTERNATIVE MIN-
IMUM TAX EXEMPTION AMOUNT. 
(a) IN GENERAL.—Paragraph (1) of section 55(d) 
(relating to exemption amount) is amended— 
(1) by striking ‘‘($62,550 in the case of taxable 
years beginning in 2006)’’ in subparagraph (A) and 
inserting ‘‘($66,250 in the case of taxable years be-
ginning in 2007)’’, and 
(2) by striking ‘‘($42,500 in the case of taxable 
years beginning in 2006)’’ in subparagraph (B) and 
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inserting ‘‘($44,350 in the case of taxable years be-
ginning in 2007)’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2006. 
TITLE II—ONE-YEAR EXTENDERS 
Subtitle A—Extenders Primarily 
Affecting Individuals 
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, 2009’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2007. 
SEC. 202. DEDUCTION OF QUALIFIED TUITION AND RE-
LATED EXPENSES. 
(a) IN GENERAL.—Subsection (e) of section 222 (re-
lating to termination) is amended by striking ‘‘December 
31, 2007’’ and inserting ‘‘December 31, 2008’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2007. 
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SEC. 203. TREATMENT OF CERTAIN DIVIDENDS OF REGU-
LATED INVESTMENT COMPANIES. 
(a) 
INTEREST-RELATED
DIVIDENDS.—Subpara-
graph (C) of section 871(k)(1) (defining interest-related 
dividend) is amended by striking ‘‘December 31, 2007’’ 
and inserting ‘‘December 31, 2008’’. 
(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, 2008’’. 
(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. 
SEC. 204. PARITY IN THE APPLICATION OF CERTAIN LIMITS 
TO MENTAL HEALTH BENEFITS. 
(a) IN GENERAL.—Paragraph (3) of section 9812(f) 
(relating to application of section) is amended by striking 
‘‘December 31, 2007’’ and inserting ‘‘December 31, 
2008’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to benefits for services furnished 
after December 31, 2007. 
SEC. 205. QUALIFIED CONSERVATION CONTRIBUTIONS. 
(a) 
IN
GENERAL.—Clause 
(vi) 
of 
section 
170(b)(1)(E) (relating to termination) is amended by 
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striking ‘‘December 31, 2007’’ and inserting ‘‘December 
31, 2008’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to contributions made in taxable 
years beginning after December 31, 2007. 
SEC. 206. 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, 
2008’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to distributions made in taxable 
years beginning after December 31, 2007. 
SEC. 207. DEDUCTION FOR CERTAIN EXPENSES OF ELE-
MENTARY AND SECONDARY SCHOOL TEACH-
ERS. 
(a) IN GENERAL.—Subparagraph (D) of section 
62(a)(2) (relating to certain expenses of elementary and 
secondary school teachers) is amended by striking ‘‘or 
2007’’ and inserting ‘‘2007, or 2008’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to taxable years beginning after 
December 31, 2007. 
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