241 
‘‘(B) 
SPECIFIED
SECURITY.—The 
term 
‘specified security’ means— 
‘‘(i) any share of stock in a corpora-
tion, 
‘‘(ii) any note, bond, debenture, or 
other evidence of indebtedness, 
‘‘(iii) any commodity, or contract or 
derivative with respect to such commodity, 
if the Secretary determines that adjusted 
basis reporting is appropriate for purposes 
of this subsection, and 
‘‘(iv) any other financial instrument 
with respect to which the Secretary deter-
mines that adjusted basis reporting is ap-
propriate for purposes of this subsection. 
‘‘(C) APPLICABLE DATE.—The term ‘appli-
cable date’ means— 
‘‘(i) January 1, 2011, in the case of 
any specified security which is stock in a 
corporation (other than any stock described 
in clause (ii)), 
‘‘(ii) January 1, 2012, in the case of 
any stock for which an average basis meth-
od is permissible under section 1012, and
242 
‘‘(iii) January 1, 2013, or such later 
date determined by the Secretary in the case 
of any other specified security. 
‘‘(4) TREATMENT OF S CORPORATIONS.—In the 
case of the sale of a covered security acquired by an 
S corporation (other than a financial institution) 
after December 31, 2011, such S corporation shall be 
treated in the same manner as a partnership for pur-
poses of this section. 
‘‘(5) SPECIAL RULES FOR SHORT SALES.—In the 
case of a short sale, reporting under this section shall 
be made for the year in which such sale is closed.’’. 
(2) BROKER INFORMATION REQUIRED WITH RE-
SPECT TO OPTIONS.—Section 6045, as amended by 
subsection (a), is amended by adding at the end the 
following new subsection: 
‘‘(h) APPLICATION TO OPTIONS ON SECURITIES.— 
‘‘(1) EXERCISE
OF
OPTION.—For purposes of 
this section, if a covered security is acquired or dis-
posed of pursuant to the exercise of an option that 
was granted or acquired in the same account as the 
covered security, the amount received with respect to 
the grant or paid with respect to the acquisition of 
such option shall be treated as an adjustment to gross
243 
proceeds or as an adjustment to basis, as the case 
may be. 
‘‘(2) LAPSE OR CLOSING TRANSACTION.—In the 
case of the lapse (or closing transaction (as defined in 
section 1234(b)(2)(A))) of an option on a specified se-
curity or the exercise of a cash-settled option on a 
specified security, reporting under subsections (a) and 
(g) with respect to such option shall be made for the 
calendar year which includes the date of such lapse, 
closing transaction, or exercise. 
‘‘(3) PROSPECTIVE
APPLICATION.—Paragraphs 
(1) and (2) shall not apply to any option which is 
granted or acquired before January 1, 2013. 
‘‘(4) DEFINITIONS.—For purposes of this sub-
section, the terms ‘covered security’ and ‘specified se-
curity’ shall have the meanings given such terms in 
subsection (g)(3).’’. 
(3) EXTENSION
OF
PERIOD
FOR
STATEMENTS 
SENT TO CUSTOMERS.— 
(A) IN GENERAL.—Subsection (b) of section 
6045 is amended by striking ‘‘January 31’’ and 
inserting ‘‘February 15’’. 
(B) STATEMENTS RELATED TO SUBSTITUTE 
PAYMENTS.—Subsection (d) of section 6045 is 
amended—
244 
(i) by striking ‘‘at such time and’’, and 
(ii) by inserting after ‘‘other item.’’ the 
following new sentence: ‘‘The written state-
ment required under the preceding sentence 
shall be furnished on or before February 15 
of the year following the calendar year in 
which the payment was made.’’. 
(C) OTHER
STATEMENTS.—Subsection (b) 
of section 6045 is amended by adding at the end 
the following: ‘‘In the case of a consolidated re-
porting statement (as defined in regulations) 
with respect to any customer, any statement 
which would otherwise be required to be fur-
nished on or before January 31 of a calendar 
year with respect to any item reportable to the 
taxpayer shall instead be required to be fur-
nished on or before February 15 of such calendar 
year if furnished with such consolidated report-
ing statement.’’. 
(b) DETERMINATION OF BASIS OF CERTAIN SECURI-
TIES ON ACCOUNT BY ACCOUNT OR AVERAGE BASIS METH-
OD.—Section 1012 is amended— 
(1) by striking ‘‘The basis of property’’ and in-
serting the following: 
‘‘(a) IN GENERAL.—The basis of property’’,
245 
(2) by striking ‘‘The cost of real property’’ and 
inserting the following: 
‘‘(b) SPECIAL RULE FOR APPORTIONED REAL ESTATE 
TAXES.—The cost of real property’’, and 
(3) by adding at the end the following new sub-
sections: 
‘‘(c) DETERMINATIONS BY ACCOUNT.— 
‘‘(1) IN GENERAL.—In the case of the sale, ex-
change, or other disposition of a specified security on 
or after the applicable date, the conventions pre-
scribed by regulations under this section shall be ap-
plied on an account by account basis. 
‘‘(2) APPLICATION TO CERTAIN FUNDS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), any stock for which an aver-
age basis method is permissible under section 
1012 which is acquired before January 1, 2012, 
shall be treated as a separate account from any 
such stock acquired on or after such date. 
‘‘(B) ELECTION FUND FOR TREATMENT AS 
SINGLE ACCOUNT.—If a fund described in sub-
paragraph (A) elects to have this subparagraph 
apply with respect to one or more of its stock-
holders—
246 
‘‘(i) subparagraph (A) shall not apply 
with respect to any stock in such fund held 
by such stockholders, and 
‘‘(ii) all stock in such fund which is 
held by such stockholders shall be treated as 
covered 
securities 
described 
in 
section 
6045(g)(3) without regard to the date of the 
acquisition of such stock. 
A rule similar to the rule of the preceding sen-
tence shall apply with respect to a broker holding 
such stock as a nominee. 
‘‘(3) DEFINITIONS.—For purposes of this section, 
the terms ‘specified security’ and ‘applicable date’ 
shall have the meaning given such terms in section 
6045(g). 
‘‘(d) AVERAGE BASIS FOR STOCK ACQUIRED PURSU-
ANT TO A DIVIDEND REINVESTMENT PLAN.— 
‘‘(1) IN GENERAL.—In the case of any stock ac-
quired after December 31, 2010, in connection with a 
dividend reinvestment plan, the basis of such stock 
while held as part of such plan shall be determined 
using one of the methods which may be used for deter-
mining the basis of stock in an open-end fund. 
‘‘(2) TREATMENT AFTER TRANSFER.—In the case 
of the transfer to another account of stock to which
247 
paragraph (1) applies, such stock shall have a cost 
basis in such other account equal to its basis in the 
dividend reinvestment plan immediately before such 
transfer (properly adjusted for any fees or other 
charges taken into account in connection with such 
transfer). 
‘‘(3) 
SEPARATE
ACCOUNTS; 
ELECTION
FOR 
TREATMENT AS SINGLE ACCOUNT.—Rules similar to 
the rules of subsection (c)(2) shall apply for purposes 
of this subsection. 
‘‘(4) DIVIDEND REINVESTMENT PLAN.—For pur-
poses of this subsection— 
‘‘(A) IN GENERAL.—The term ‘dividend re-
investment plan’ means any arrangement under 
which dividends on any stock are reinvested in 
stock identical to the stock with respect to which 
the dividends are paid. 
‘‘(B) INITIAL STOCK ACQUISITION TREATED 
AS
ACQUIRED
IN
CONNECTION
WITH
PLAN.— 
Stock shall be treated as acquired in connection 
with a dividend reinvestment plan if such stock 
is acquired pursuant to such plan or if the divi-
dends paid on such stock are subject to such 
plan.’’.
248 
(c) INFORMATION
BY TRANSFERORS TO AID BRO-
KERS.— 
(1) IN GENERAL.—Subpart B of part III of sub-
chapter A of chapter 61 is amended by inserting after 
section 6045 the following new section: 
‘‘SEC. 6045A. INFORMATION REQUIRED IN CONNECTION 
WITH TRANSFERS OF COVERED SECURITIES 
TO BROKERS. 
‘‘(a) FURNISHING OF INFORMATION.—Every applica-
ble person which transfers to a broker (as defined in section 
6045(c)(1)) a security which is a covered security (as de-
fined in section 6045(g)(3)) in the hands of such applicable 
person shall furnish to such broker a written statement in 
such manner and setting forth such information as the Sec-
retary may by regulations prescribe for purposes of ena-
bling such broker to meet the requirements of section 
6045(g). 
‘‘(b) APPLICABLE PERSON.—For purposes of sub-
section (a), the term ‘applicable person’ means— 
‘‘(1) 
any 
broker 
(as 
defined 
in 
section 
6045(c)(1)), and 
‘‘(2) any other person as provided by the Sec-
retary in regulations. 
‘‘(c) TIME FOR FURNISHING STATEMENT.—Except as 
otherwise provided by the Secretary, any statement required
249 
by subsection (a) shall be furnished not later than 15 days 
after the date of the transfer described in such subsection.’’. 
(2) ASSESSABLE PENALTIES.—Paragraph (2) of 
section 6724(d), as amended by the Housing Assist-
ance Tax Act of 2008, is amended by redesignating 
subparagraphs (I) through (DD) as subparagraphs 
(J) through (EE), respectively, and by inserting after 
subparagraph (H) the following new subparagraph: 
‘‘(I) section 6045A (relating to information 
required in connection with transfers of covered 
securities to brokers),’’. 
(3) CLERICAL AMENDMENT.—The table of sec-
tions for subpart B of part III of subchapter A of 
chapter 61 is amended by inserting after the item re-
lating to section 6045 the following new item: 
‘‘Sec. 6045A. Information required in connection with transfers of covered securi-
ties to brokers.’’. 
(d) ADDITIONAL ISSUER INFORMATION TO AID BRO-
KERS.— 
(1) IN GENERAL.—Subpart B of part III of sub-
chapter A of chapter 61, as amended by subsection 
(b), is amended by inserting after section 6045A the 
following new section:
250 
‘‘SEC. 6045B. RETURNS RELATING TO ACTIONS AFFECTING 
BASIS OF SPECIFIED SECURITIES. 
‘‘(a) IN GENERAL.—According to the forms or regula-
tions prescribed by the Secretary, any issuer of a specified 
security shall make a return setting forth— 
‘‘(1) a description of any organizational action 
which affects the basis of such specified security of 
such issuer, 
‘‘(2) the quantitative effect on the basis of such 
specified security resulting from such action, and 
‘‘(3) such other information as the Secretary 
may prescribe. 
‘‘(b) TIME FOR FILING RETURN.—Any return required 
by subsection (a) shall be filed not later than the earlier 
of— 
‘‘(1) 45 days after the date of the action de-
scribed in subsection (a), or 
‘‘(2) January 15 of the year following the cal-
endar year during which such action occurred. 
‘‘(c) STATEMENTS TO BE FURNISHED TO HOLDERS OF 
SPECIFIED SECURITIES OR THEIR NOMINEES.—According 
to the forms or regulations prescribed by the Secretary, 
every person required to make a return under subsection 
(a) with respect to a specified security shall furnish to the 
nominee with respect to the specified security (or certificate
251 
holder if there is no nominee) a written statement show-
ing— 
‘‘(1) the name, address, and phone number of the 
information contact of the person required to make 
such return, 
‘‘(2) the information required to be shown on 
such return with respect to such security, and 
‘‘(3) such other information as the Secretary 
may prescribe. 
The written statement required under the preceding sen-
tence shall be furnished to the holder on or before January 
15 of the year following the calendar year during which 
the action described in subsection (a) occurred. 
‘‘(d) SPECIFIED SECURITY.—For purposes of this sec-
tion, the term ‘specified security’ has the meaning given 
such term by section 6045(g)(3)(B). No return shall be re-
quired under this section with respect to actions described 
in subsection (a) with respect to a specified security which 
occur before the applicable date (as defined in section 
6045(g)(3)(C)) with respect to such security. 
‘‘(e) PUBLIC REPORTING IN LIEU OF RETURN.—The 
Secretary may waive the requirements under subsections 
(a) and (c) with respect to a specified security, if the person 
required to make the return under subsection (a) makes 
publicly available, in such form and manner as the Sec-
252 
retary determines necessary to carry out the purposes of this 
section— 
‘‘(1) the name, address, phone number, and 
email address of the information contact of such per-
son, and 
‘‘(2) the information described in paragraphs 
(1), (2), and (3) of subsection (a).’’. 
(2) ASSESSABLE PENALTIES.— 
(A) 
Subparagraph 
(B) 
of 
section 
6724(d)(1), as amended by the Housing Assist-
ance Tax Act of 2008, is amended by redesig-
nating clause (iv) and each of the clauses which 
follow as clauses (v) through (xxiii), respectively, 
and by inserting after clause (iii) the following 
new clause: 
‘‘(iv) section 6045B(a) (relating to re-
turns relating to actions affecting basis of 
specified securities),’’. 
(B) Paragraph (2) of section 6724(d), as 
amended by the Housing Assistance Tax Act of 
2008 and by subsection (c)(2), is amended by re-
designating subparagraphs (J) through (EE) as 
subparagraphs (K) through (FF), respectively, 
and by inserting after subparagraph (I) the fol-
lowing new subparagraph:
253 
‘‘(J) subsections (c) and (e) of section 
6045B (relating to returns relating to actions af-
fecting basis of specified securities),’’. 
(3) CLERICAL AMENDMENT.—The table of sec-
tions for subpart B of part III of subchapter A of 
chapter 61, as amended by subsection (b)(3), is 
amended by inserting after the item relating to sec-
tion 6045A the following new item: 
‘‘Sec. 6045B. Returns relating to actions affecting basis of specified securities.’’. 
(e) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as otherwise provided 
in this subsection, the amendments made by this sec-
tion shall take effect on January 1, 2011. 
(2) EXTENSION
OF
PERIOD
FOR
STATEMENTS 
SENT
TO
CUSTOMERS.—The amendments made by 
subsection (a)(3) shall apply to statements required to 
be furnished after December 31, 2008. 
SEC. 404. 0.2 PERCENT FUTA SURTAX. 
(a) IN GENERAL.—Section 3301 (relating to rate of 
tax) is amended— 
(1) by striking ‘‘through 2008’’ in paragraph (1) 
and inserting ‘‘through 2009’’, and 
(2) by striking ‘‘calendar year 2009’’ in para-
graph (2) and inserting ‘‘calendar year 2010’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to wages paid after December 31, 2008.
254 
SEC. 405. INCREASE AND EXTENSION OF OIL SPILL LIABIL-
ITY TRUST FUND TAX. 
(a) INCREASE IN RATE.— 
(1) IN GENERAL.—Section 4611(c)(2)(B) (relat-
ing to rates) is amended by striking ‘‘is 5 cents a bar-
rel.’’ and inserting ‘‘is— 
‘‘(i) in the case of crude oil received or 
petroleum products entered before January 
1, 2017, 8 cents a barrel, and 
‘‘(ii) in the case of crude oil received or 
petroleum products entered after December 
31, 2016, 9 cents a barrel.’’. 
(2) EFFECTIVE DATE.—The amendment made by 
this subsection shall apply on and after the first day 
of the first calendar quarter beginning more than 60 
days after the date of the enactment of this Act. 
(b) EXTENSION.— 
(1) IN GENERAL.—Section 4611(f) (relating to 
application of Oil Spill Liability Trust Fund financ-
ing rate) is amended by striking paragraphs (2) and 
(3) and inserting the following new paragraph: 
‘‘(2) TERMINATION.—The Oil Spill Liability 
Trust Fund financing rate shall not apply after De-
cember 31, 2017.’’.
255 
(2) 
CONFORMING
AMENDMENT.—Section 
4611(f)(1) is amended by striking ‘‘paragraphs (2) 
and (3)’’ and inserting ‘‘paragraph (2)’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall take effect on the date of the 
enactment of this Act. 
DIVISION 
C—TAX 
EXTENDERS 
AND ALTERNATIVE MINIMUM 
TAX RELIEF 
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; 
TABLE OF CONTENTS. 
(a) SHORT TITLE.—This division may be cited as the 
‘‘Tax Extenders and Alternative Minimum Tax Relief Act 
of 2008’’. 
(b) AMENDMENT OF 1986 CODE.—Except as otherwise 
expressly provided, whenever in this division an amend-
ment 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 
division is as follows: 
Sec. 1. Short title; amendment of 1986 Code; table of contents. 
TITLE I—ALTERNATIVE MINIMUM TAX RELIEF 
Sec. 101. Extension of alternative minimum tax relief for nonrefundable personal 
credits. 
Sec. 102. Extension of increased alternative minimum tax exemption amount.
256 
Sec. 103. Increase of AMT refundable credit amount for individuals with long- 
term unused credits for prior year minimum tax liability, etc. 
TITLE II—EXTENSION OF INDIVIDUAL TAX PROVISIONS 
Sec. 201. Deduction for State and local sales taxes. 
Sec. 202. Deduction of qualified tuition and related expenses. 
Sec. 203. Deduction for certain expenses of elementary and secondary school 
teachers. 
Sec. 204. Additional standard deduction for real property taxes for nonitemizers. 
Sec. 205. Tax-free distributions from individual retirement plans for charitable 
purposes. 
Sec. 206. Treatment of certain dividends of regulated investment companies. 
Sec. 207. Stock in RIC for purposes of determining estates of nonresidents not 
citizens. 
Sec. 208. Qualified investment entities. 
TITLE III—EXTENSION OF BUSINESS TAX PROVISIONS 
Sec. 301. Extension and modification of research credit. 
Sec. 302. New markets tax credit. 
Sec. 303. Subpart F exception for active financing income. 
Sec. 304. Extension of look-thru rule for related controlled foreign corporations. 
Sec. 305. Extension of 15-year straight-line cost recovery for qualified leasehold 
improvements and qualified restaurant improvements; 15-year 
straight-line cost recovery for certain improvements to retail 
space. 
Sec. 306. Modification of tax treatment of certain payments to controlling exempt 
organizations. 
Sec. 307. Basis adjustment to stock of S corporations making charitable contribu-
tions of property. 
Sec. 308. Increase in limit on cover over of rum excise tax to Puerto Rico and 
the Virgin Islands. 
Sec. 309. Extension of economic development credit for American Samoa. 
Sec. 310. Extension of mine rescue team training credit. 
Sec. 311. Extension of election to expense advanced mine safety equipment. 
Sec. 312. Deduction allowable with respect to income attributable to domestic pro-
duction activities in Puerto Rico. 
Sec. 313. Qualified zone academy bonds. 
Sec. 314. Indian employment credit. 
Sec. 315. Accelerated depreciation for business property on Indian reservations. 
Sec. 316. Railroad track maintenance. 
Sec. 317. Seven-year cost recovery period for motorsports racing track facility. 
Sec. 318. Expensing of environmental remediation costs. 
Sec. 319. Extension of work opportunity tax credit for Hurricane Katrina em-
ployees. 
Sec. 320. Extension of increased rehabilitation credit for structures in the Gulf 
Opportunity Zone. 
Sec. 321. Enhanced deduction for qualified computer contributions. 
Sec. 322. Tax incentives for investment in the District of Columbia. 
Sec. 323. Enhanced charitable deductions for contributions of food inventory. 
Sec. 324. Extension of enhanced charitable deduction for contributions of book in-
ventory. 
Sec. 325. Extension and modification of duty suspension on wool products; wool 
research fund; wool duty refunds.
257 
TITLE IV—EXTENSION OF TAX ADMINISTRATION PROVISIONS 
Sec. 401. Permanent authority for undercover operations. 
Sec. 402. Permanent authority for disclosure of information relating to terrorist 
activities. 
TITLE V—ADDITIONAL TAX RELIEF AND OTHER TAX PROVISIONS 
Subtitle A—General Provisions 
Sec. 501. $8,500 income threshold used to calculate refundable portion of child tax 
credit. 
Sec. 502. Provisions related to film and television productions. 
Sec. 503. Exemption from excise tax for certain wooden arrows designed for use 
by children. 
Sec. 504. Income averaging for amounts received in connection with the Exxon 
Valdez litigation. 
Sec. 505. Certain farming business machinery and equipment treated as 5-year 
property. 
Sec. 506. Modification of penalty on understatement of taxpayer’s liability by tax 
return preparer. 
Subtitle B—Paul Wellstone and Pete Domenici Mental Health Parity and 
Addiction Equity Act of 2008 
Sec. 511. Short title. 
Sec. 512. Mental health parity. 
TITLE VI—OTHER PROVISIONS 
Sec. 601. Secure rural schools and community self-determination program. 
Sec. 602. Transfer to abandoned mine reclamation fund. 
TITLE VII—DISASTER RELIEF 
Subtitle A—Heartland and Hurricane Ike Disaster Relief 
Sec. 701. Short title. 
Sec. 702. Temporary tax relief for areas damaged by 2008 Midwestern severe 
storms, tornados, and flooding. 
Sec. 703. Reporting requirements relating to disaster relief contributions. 
Sec. 704. Temporary tax-exempt bond financing and low-income housing tax re-
lief for areas damaged by Hurricane Ike. 
Subtitle B—National Disaster Relief 
Sec. 706. Losses attributable to federally declared disasters. 
Sec. 707. Expensing of Qualified Disaster Expenses. 
Sec. 708. Net operating losses attributable to federally declared disasters. 
Sec. 709. Waiver of certain mortgage revenue bond requirements following feder-
ally declared disasters. 
Sec. 710. Special depreciation allowance for qualified disaster property. 
Sec. 711. Increased expensing for qualified disaster assistance property. 
Sec. 712. Coordination with Heartland disaster relief. 
TITLE VIII—SPENDING REDUCTIONS AND APPROPRIATE REVENUE 
RAISERS FOR NEW TAX RELIEF POLICY 
Sec. 801. Nonqualified deferred compensation from certain tax indifferent parties.
258 
TITLE I—ALTERNATIVE 
MINIMUM TAX RELIEF 
SEC. 101. EXTENSION OF ALTERNATIVE MINIMUM TAX RE-
LIEF 
FOR 
NONREFUNDABLE 
PERSONAL 
CREDITS. 
(a) IN GENERAL.—Paragraph (2) of section 26(a) (re-
lating to special rule for taxable years 2000 through 2007) 
is amended— 
(1) by striking ‘‘or 2007’’ and inserting ‘‘2007, 
or 2008’’, and 
(2) by striking ‘‘2007’’ in the heading thereof and 
inserting ‘‘2008’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2007. 
SEC. 102. EXTENSION OF INCREASED ALTERNATIVE MIN-
IMUM TAX EXEMPTION AMOUNT. 
(a) IN GENERAL.—Paragraph (1) of section 55(d) (re-
lating to exemption amount) is amended— 
(1) by striking ‘‘($66,250 in the case of taxable 
years beginning in 2007)’’ in subparagraph (A) and 
inserting ‘‘($69,950 in the case of taxable years begin-
ning in 2008)’’, and 
(2) by striking ‘‘($44,350 in the case of taxable 
years beginning in 2007)’’ in subparagraph (B) and