(B) The table of sections for part II of 
subchapter A of chapter 11 of such Code is 
amended by striking the item relating to section 
2011. 
(C) The table of sections for part IV of 
subchapter A of chapter 11 of such Code is 
amended by striking the item relating to section 
2057. 
(D) The table of sections for subchapter A 
of chapter 13 of such Code is amended by strik-
ing the item relating to section 2604. 
SEC. 102. UNIFIED CREDIT INCREASED BY UNUSED UNI-
FIED CREDIT OF DECEASED SPOUSE. 
(a) IN GENERAL.—Subsection (c) of section 2010 
(defining applicable credit amount), as amended by section 
101(b), is amended by striking paragraph (2) and insert-
ing the following new paragraphs: 
‘‘(2) APPLICABLE
EXCLUSION
AMOUNT.—For 
purposes of this subsection, the applicable exclusion 
amount is the sum of— 
‘‘(A) the basic exclusion amount, and 
‘‘(B) in the case of a surviving spouse, the 
aggregate deceased spousal unused exclusion 
amount. 
‘‘(3) BASIC EXCLUSION AMOUNT.— 
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‘‘(A) IN GENERAL.—For purposes of this 
subsection, the basic exclusion amount is as fol-
lows: 
‘‘(i) 
For 
calendar 
year 
2010, 
$3,750,000. 
‘‘(ii) 
For 
calendar 
year 
2011, 
$4,000,000. 
‘‘(iii) 
For 
calendar 
year 
2012, 
$4,250,000. 
‘‘(iv) 
For 
calendar 
year 
2013, 
$4,500,000. 
‘‘(v) 
For 
calendar 
year 
2014, 
$4,750,000. 
‘‘(vi) For calendar year 2015 and 
thereafter, $5,000,000. 
‘‘(B) INFLATION
ADJUSTMENT.—In the 
case of any decedent dying in a calendar year 
after 2015, the $5,000,000 amount in subpara-
graph (A)(vi) shall be increased by an amount 
equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for such 
calendar year by substituting ‘calendar 
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year 2014’ for ‘calendar year 1992’ in sub-
paragraph (B) thereof. 
If any amount as adjusted under the preceding 
sentence is not a multiple of $100,000, such 
amount shall be rounded to the nearest multiple 
of $100,000. 
‘‘(4) AGGREGATE DECEASED SPOUSAL UNUSED 
EXCLUSION
AMOUNT.—For purposes of this sub-
section, the term ‘aggregate deceased spousal unused 
exclusion amount’ means the lesser of— 
‘‘(A) the basic exclusion amount, or 
‘‘(B) the sum of the deceased spousal un-
used exclusion amounts of the surviving spouse. 
‘‘(5) DECEASED SPOUSAL UNUSED EXCLUSION 
AMOUNT.—For purposes of this subsection, the term 
‘deceased spousal unused exclusion amount’ means, 
with respect to the surviving spouse of any deceased 
spouse dying after December 31, 2009, the excess (if 
any) of— 
‘‘(A) the applicable exclusion amount of 
the deceased spouse, over 
‘‘(B) the amount with respect to which the 
tentative tax is determined under section 
2001(b)(1) on the estate of such deceased 
spouse. 
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‘‘(6) SPECIAL RULES.— 
‘‘(A) ELECTION
REQUIRED.—A deceased 
spousal unused exclusion amount may not be 
taken into account by a surviving spouse under 
paragraph (5) unless the executor of the estate 
of the deceased spouse files an estate tax return 
on which such amount is computed and makes 
an election on such return that such amount 
may be so taken into account. Such election, 
once made, shall be irrevocable. No election 
may be made under this subparagraph if such 
return is filed after the time prescribed by law 
(including extensions) for filing such return. 
‘‘(B) EXAMINATION
OF
PRIOR
RETURNS 
AFTER EXPIRATION OF PERIOD OF LIMITATIONS 
WITH
RESPECT
TO
DECEASED
SPOUSAL
UN-
USED
EXCLUSION
AMOUNT.—Notwithstanding 
any period of limitation in section 6501, after 
the time has expired under section 6501 within 
which a tax may be assessed under chapter 11 
or 12 with respect to a deceased spousal unused 
exclusion amount, the Secretary may examine a 
return of the deceased spouse to make deter-
minations with respect to such amount for pur-
poses of carrying out this subsection. 
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‘‘(7) REGULATIONS.—The Secretary shall pre-
scribe such regulations as may be necessary or ap-
propriate to carry out this subsection.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (1) of section 2505(a), as 
amended by section 101, is amended to read as fol-
lows: 
‘‘(1) the applicable credit amount under section 
2010(c) which would apply if the donor died as of 
the end of the calendar year, reduced by’’. 
(2) Section 2631(c) is amended by striking ‘‘the 
applicable exclusion amount’’ and inserting ‘‘the 
basic exclusion amount’’. 
(3) Section 6018(a)(1), after the application of 
section 101(g), is amended by striking ‘‘applicable 
exclusion amount’’ and inserting ‘‘basic exclusion 
amount’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to estates of decedents dying, gen-
eration-skipping transfers, and gifts made, after Decem-
ber 31, 2009. 
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TITLE II—EXTENSION AND EX-
PANSION OF CERTAIN TAX 
RELIEF PROVISIONS 
Subtitle A—Extension and 
Modification of Certain Provisions 
SEC. 201. DEDUCTION FOR QUALIFIED TUITION AND RE-
LATED EXPENSES. 
(a) IN GENERAL.—Section 222(e) is amended by 
striking ‘‘2005’’and inserting ‘‘2007’’. 
(b) 
CONFORMING
AMENDMENTS.—Section 
222(b)(2)(B) is amended— 
(1) by striking ‘‘a taxable year beginning in 
2004 or 2005’’ and inserting ‘‘any taxable year be-
ginning after 2003’’, and 
(2) by striking ‘‘2004 AND 2005’’ in the heading 
and inserting ‘‘AFTER 2003’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2005. 
SEC. 202. EXTENSION AND MODIFICATION OF NEW MAR-
KETS TAX CREDIT. 
(a) EXTENSION.—Section 45D(f)(1)(D) is amended 
by striking ‘‘and 2007’’ and inserting ‘‘, 2007, and 2008’’. 
(b) REGULATIONS REGARDING NON-METROPOLITAN 
COUNTIES.—Section 45D(i) is amended by striking ‘‘and’’ 
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at the end of paragraph (4), by striking the period at the 
end of paragraph (5) and inserting ‘‘, and’’, and by adding 
at the end the following new paragraph: 
‘‘(6) which ensure that non-metropolitan coun-
ties receive a proportional allocation of qualified eq-
uity investments.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
SEC. 203. ELECTION TO DEDUCT STATE AND LOCAL GEN-
ERAL SALES TAXES. 
(a) IN GENERAL.—Section 164(b)(5)(I) is amended 
by striking ‘‘2006’’ and inserting ‘‘2008’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2005. 
SEC. 204. EXTENSION AND MODIFICATION OF RESEARCH 
CREDIT. 
(a) EXTENSION.— 
(1) IN
GENERAL.—Section 41(h)(1)(B) is 
amended by striking ‘‘2005’’ and inserting ‘‘2007’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
45C(b)(1)(D) is amended by striking ‘‘2005’’ and 
inserting ‘‘2007’’. 
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(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to amounts paid or in-
curred after December 31, 2005. 
(b) INCREASE IN RATES OF ALTERNATIVE INCRE-
MENTAL CREDIT.— 
(1) IN GENERAL.—Subparagraph (A) of section 
41(c)(4) (relating to election of alternative incre-
mental credit) is amended— 
(A) by striking ‘‘2.65 percent’’ and insert-
ing ‘‘3 percent’’, 
(B) by striking ‘‘3.2 percent’’ and inserting 
‘‘4 percent’’, and 
(C) by striking ‘‘3.75 percent’’ and insert-
ing ‘‘5 percent’’. 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to amounts paid or in-
curred after December 31, 2006. 
(c) ALTERNATIVE SIMPLIFIED CREDIT FOR QUALI-
FIED RESEARCH EXPENSES.— 
(1) IN GENERAL.—Subsection (c) of section 41 
(relating to base amount) is amended by redesig-
nating paragraphs (5) and (6) as paragraphs (6) 
and (7), respectively, and by inserting after para-
graph (4) the following new paragraph: 
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‘‘(5) ELECTION OF ALTERNATIVE SIMPLIFIED 
CREDIT.— 
‘‘(A) IN GENERAL.—At the election of the 
taxpayer, the credit determined under sub-
section (a)(1) shall be equal to 12 percent of so 
much of the qualified research expenses for the 
taxable year as exceeds 50 percent of the aver-
age qualified research expenses for the 3 tax-
able years preceding the taxable year for which 
the credit is being determined. 
‘‘(B) SPECIAL
RULE
IN
CASE
OF
NO 
QUALIFIED RESEARCH EXPENSES IN ANY OF 3 
PRECEDING TAXABLE YEARS.— 
‘‘(i) TAXPAYERS TO WHICH SUBPARA-
GRAPH
APPLIES.—The credit under this 
paragraph shall be determined under this 
subparagraph if the taxpayer has no quali-
fied research expenses in any one of the 3 
taxable years preceding the taxable year 
for which the credit is being determined. 
‘‘(ii) CREDIT RATE.—The credit de-
termined under this subparagraph shall be 
equal to 6 percent of the qualified research 
expenses for the taxable year. 
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‘‘(C) ELECTION.—An election under this 
paragraph shall apply to the taxable year for 
which made and all succeeding taxable years 
unless revoked with the consent of the Sec-
retary. An election under this paragraph may 
not be made for any taxable year to which an 
election under paragraph (4) applies.’’. 
(2) COORDINATION WITH ELECTION OF ALTER-
NATIVE INCREMENTAL CREDIT.— 
(A) IN
GENERAL.—Section 41(c)(4)(B) 
(relating to election) is amended by adding at 
the end the following: ‘‘An election under this 
paragraph may not be made for any taxable 
year to which an election under paragraph (5) 
applies.’’. 
(B) TRANSITION RULE.—In the case of an 
election under section 41(c)(4) of the Internal 
Revenue Code of 1986 which applies to the tax-
able year which includes the date of the enact-
ment of this Act, such election shall be treated 
as revoked with the consent of the Secretary of 
the Treasury if the taxpayer makes an election 
under section 41(c)(5) of such Code (as added 
by subsection (c)) for such year. 
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(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to amounts paid or in-
curred after December 31, 2006. 
SEC. 205. WORK OPPORTUNITY TAX CREDIT AND WELFARE- 
TO-WORK CREDIT. 
(a) IN GENERAL.—Sections 51(c)(4)(B) and 51A(f) 
are each amended by striking ‘‘2005’’ and inserting 
‘‘2007’’. 
(b) ELIGIBILITY
OF
EX-FELONS
DETERMINED 
WITHOUT REGARD TO FAMILY INCOME.—Paragraph (4) 
of section 51(d) is amended by adding ‘‘and’’ at the end 
of subparagraph (A), by striking ‘‘, and’’ at the end of 
subparagraph (B) and inserting a period, and by striking 
all that follows subparagraph (B). 
(c) INCREASE IN MAXIMUM AGE FOR ELIGIBILITY OF 
FOOD
STAMP
RECIPIENTS.—Clause (i) of section 
51(d)(8)(A) is amended by striking ‘‘25’’ and inserting 
‘‘40’’. 
(d) EXTENSION
OF PAPERWORK FILING DEAD-
LINE.—Section 51(d)(12)(A)(ii)(II) is amended by strik-
ing ‘‘21st day’’ and inserting ‘‘28th day’’. 
(e) CONSOLIDATION OF WORK OPPORTUNITY CRED-
IT WITH WELFARE-TO-WORK CREDIT.— 
(1) IN
GENERAL.—Paragraph (1) of section 
51(d) is amended by striking ‘‘or’’ at the end of sub-
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paragraph (G), by striking the period at the end of 
subparagraph (H) and inserting ‘‘, or’’, and by add-
ing at the end the following new subparagraph: 
‘‘(I) a long-term family assistance recipi-
ent.’’. 
(2) LONG-TERM
FAMILY
ASSISTANCE
RECIPI-
ENT.—Subsection (d) of section 51 is amended by 
redesignating paragraphs (10) through (12) as para-
graphs (11) through (13), respectively, and by in-
serting after paragraph (9) the following new para-
graph: 
‘‘(10) LONG-TERM FAMILY ASSISTANCE RECIPI-
ENT.—The term ‘long-term family assistance recipi-
ent’ means any individual who is certified by the 
designated local agency— 
‘‘(A) as being a member of a family receiv-
ing assistance under a IV–A program (as de-
fined in paragraph (2)(B)) for at least the 18- 
month period ending on the hiring date, 
‘‘(B)(i) as being a member of a family re-
ceiving such assistance for 18 months beginning 
after August 5, 1997, and 
‘‘(ii) as having a hiring date which is not 
more than 2 years after the end of the earliest 
such 18-month period, or 
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