be established not later than 60 days after the date of 
enactment of this section. 
(3) CRITERIA.—The funding formula required 
under paragraph (1) shall ensure that any amounts 
appropriated or otherwise made available under this 
section are allocated to States and units of general 
local government with the greatest need, as such need 
is determined in the discretion of the Secretary based 
on—
(A) the number and percentage of home 
foreclosures in each State or unit of general local 
government; 
(B) the number and percentage of homes fi-
nanced by a subprime mortgage related loan in 
each State or unit of general local government; 
and 
(C) the number and percentage of homes in 
default or delinquency in each State or unit of 
general local government. 
(4) DISTRIBUTION.—Amounts appropriated or 
otherwise made available under this section shall be 
distributed according to the funding formula estab-
lished by the Secretary under paragraph (1) not later 
than 30 days after the establishment of such formula. 
(c) USE OF FUNDS.—
(1) IN GENERAL.—Any State or unit of general 
local government that receives amounts pursuant to 
this section shall, not later than 18 months after the 
receipt of such amounts, use such amounts to pur-
chase and redevelop abandoned and foreclosed homes 
and residential properties. 
(2) PRIORITY.—Any State or unit of general 
local government that receives amounts pursuant to 
this section shall in distributing such amounts give 
priority emphasis and consideration to those metro-
politan areas, metropolitan cities, urban areas, rural 
areas, low- and moderate-income areas, and other 
areas with the greatest need, including those—
(A) with the greatest percentage of home 
foreclosures; 
(B) with the highest percentage of homes fi-
nanced by a subprime mortgage related loan; 
and 
(C) identified by the State or unit of gen-
eral local government as likely to face a signifi-
cant rise in the rate of home foreclosures. 
(3) ELIGIBLE USES.—Amounts made available 
under this section may be used to—
(A) establish financing mechanisms for pur-
chase and redevelopment of foreclosed upon
homes and residential properties, including such 
mechanisms as soft-seconds, loan loss reserves, 
and shared-equity loans for low- and moderate-
income homebuyers; 
(B) purchase and rehabilitate homes and 
residential properties that have been abandoned 
or foreclosed upon, in order to sell, rent, or rede-
velop such homes and properties; 
(C) establish land banks for homes that have 
been foreclosed upon; and 
(D) demolish blighted structures. 
(d) LIMITATIONS.—
(1) ON PURCHASES.—Any purchase of a fore-
closed upon home or residential property under this 
section shall be at a discount from the current market 
appraised value of the home or property, taking into 
account its current condition, and such discount shall 
ensure that purchasers are paying below-market value 
for the home or property. 
(2) SALE OF HOMES.—If an abandoned or fore-
closed upon home or residential property is pur-
chased, redeveloped, or otherwise sold to an individual 
as a primary residence, then such sale shall be in an 
amount equal to or less than the cost to acquire and
redevelop or rehabilitate such home or property up to 
a decent, safe, and habitable condition. 
(3) REINVESTMENT OF PROFITS.—
(A) PROFITS FROM SALES, RENTALS, AND 
REDEVELOPMENT.—
(i) 5-YEAR REINVESTMENT PERIOD.—
During the 5-year period following the date 
of enactment of this Act, any revenue gen-
erated from the sale, rental, redevelopment, 
rehabilitation, or any other eligible use that 
is in excess of the cost to acquire and rede-
velop (including reasonable development 
fees) or rehabilitate an abandoned or fore-
closed upon home or residential property 
shall be provided to and used by the State 
or unit of general local government in ac-
cordance with, and in furtherance of, the 
intent and provisions of this section. 
(ii) DEPOSITS IN THE TREASURY.—
(I) PROFITS.—Upon the expira-
tion of the 5-year period set forth 
under clause (i), any revenue generated 
from the sale, rental, redevelopment, 
rehabilitation, or any other eligible use 
that is in excess of the cost to acquire
and redevelop (including reasonable 
development fees) or rehabilitate an 
abandoned or foreclosed upon home or 
residential property shall be deposited 
in the Treasury of the United States as 
miscellaneous receipts, unless the Sec-
retary approves a request to use the 
funds for purposes under this Act. 
(II) OTHER AMOUNTS.—Upon the 
expiration of the 5-year period set 
forth under clause (i), any other rev-
enue not described under subclause (I) 
generated from the sale, rental, redevel-
opment, rehabilitation, or any other el-
igible use of an abandoned or foreclosed 
upon home or residential property 
shall be deposited in the Treasury of 
the United States as miscellaneous re-
ceipts. 
(B) OTHER REVENUES.—Any revenue gen-
erated under subparagraphs (A), (C) or (D) of 
subsection (c)(3) shall be provided to and used by 
the State or unit of general local government in 
accordance with, and in furtherance of, the in-
tent and provisions of this section.
(e) RULES OF CONSTRUCTION.—
(1) IN GENERAL.—Except as otherwise provided 
by this section, amounts appropriated, revenues gen-
erated, or amounts otherwise made available to States 
and units of general local government under this sec-
tion shall be treated as though such funds were com-
munity development block grant funds under title I of 
the Housing and Community Development Act of 
1974 (42 U.S.C. 5301 et seq.). 
(2) NO MATCH.—No matching funds shall be re-
quired in order for a State or unit of general local 
government to receive any amounts under this section. 
(f) AUTHORITY TO SPECIFY ALTERNATIVE REQUIRE-
MENTS.—
(1) 
IN
GENERAL.—In 
administering 
any 
amounts appropriated or otherwise made available 
under this section, the Secretary may specify alter-
native requirements to any provision under title I of 
the Housing and Community Development Act of 
1974 (except for those related to fair housing, non-
discrimination, labor standards, and the environ-
ment) in accordance with the terms of this section 
and for the sole purpose of expediting the use of such 
funds.
‘‘any extension of credit that is secured by the dwell-
ing of a consumer’’; 
(3) by striking ‘‘before the credit is extended, or’’; 
(4) by inserting ‘‘, which shall be at least 7 busi-
ness days before consummation of the transaction’’ 
after ‘‘written application’’; 
(5) by striking ‘‘, whichever is earlier’’; and 
(6) by striking ‘‘If the’’ and all that follows 
through the end of the paragraph and inserting the 
following: 
‘‘(B) In the case of an extension of credit that is 
secured by the dwelling of a consumer, the disclosures 
provided under subparagraph (A), shall be in addi-
tion to the other disclosures required by subsection 
(a), and shall—
‘‘(i) state in conspicuous type size and for-
mat, the following: ‘You are not required to com-
plete this agreement merely because you have re-
ceived these disclosures or signed a loan applica-
tion.’; and 
‘‘(ii) be provided in the form of final disclo-
sures at the time of consummation of the trans-
action, in the form and manner prescribed by 
this section.
‘‘(C) In the case of an extension of credit that is 
secured by the dwelling of a consumer, under which 
the annual rate of interest is variable, or with respect 
to which the regular payments may otherwise be vari-
able, in addition to the other disclosures required by 
subsection (a), the disclosures provided under this 
subsection shall do the following: 
‘‘(i) Label the payment schedule as follows: 
‘Payment Schedule: Payments Will Vary Based 
on Interest Rate Changes’. 
‘‘(ii) State in conspicuous type size and for-
mat examples of adjustments to the regular re-
quired payment on the extension of credit based 
on the change in the interest rates specified by 
the contract for such extension of credit. Among 
the examples required to be provided under this 
clause is an example that reflects the maximum 
payment amount of the regular required pay-
ments on the extension of credit, based on the 
maximum interest rate allowed under the con-
tract, in accordance with the rules of the Board. 
Prior to issuing any rules pursuant to this 
clause, the Board shall conduct consumer testing 
to determine the appropriate format for pro-
viding the disclosures required under this sub-
paragraph to consumers so that such disclosures 
can be easily understood. 
‘‘(D) In any case in which the disclosure state-
ment under subparagraph (A) contains an annual 
percentage rate of interest that is no longer accurate, 
as determined under section 107(c), the creditor shall 
furnish an additional, corrected statement to the bor-
rower, not later than 3 business days before the date 
of consummation of the transaction. 
‘‘(E) The consumer shall receive the disclosures 
required under this paragraph before paying any fee 
to the creditor or other person in connection with the 
consumer’s application for an extension of credit that 
is secured by the dwelling of a consumer. If the disclo-
sures are mailed to the consumer, the consumer is 
considered to have received them 3 business days after 
they are mailed. A creditor or other person may im-
pose a fee for obtaining the consumer’s credit report 
before the consumer has received the disclosures under 
this paragraph, provided the fee is bona fide and rea-
sonable in amount. 
‘‘(F) WAIVER
OF
TIMELINESS
OF
DISCLO-
SURES.—To expedite consummation of a transaction, 
if the consumer determines that the extension of credit 
is needed to meet a bona fide personal financial emer-
gency, the consumer may waive or modify the timing 
requirements for disclosures under subparagraph (A), 
provided that—
‘‘(i) the term ‘bona fide personal emergency’ 
may be further defined in regulations issued by 
the Board; 
‘‘(ii) the consumer provides to the creditor 
a dated, written statement describing the emer-
gency and specifically waiving or modifying 
those timing requirements, which statement shall 
bear the signature of all consumers entitled to re-
ceive the disclosures required by this paragraph; 
and 
‘‘(iii) the creditor provides to the consumers 
at or before the time of such waiver or modifica-
tion, the final disclosures required by paragraph 
(1). 
‘‘(G) The requirements of subparagraphs (B), 
(C), (D) and (E) shall not apply to extensions of 
credit relating to plans described in section 101(53D) 
of title 11, United States Code.’’. 
(b) CIVIL LIABILITY.—Section 130(a) of the Truth in 
Lending Act (15 U.S.C. 1640(a)) is amended—
(1) in paragraph (2)(A)(iii), by striking ‘‘not 
less than $200 or greater than $2,000’’ and inserting 
‘‘not less than $400 or greater than $4,000’’; and 
(2) in the penultimate sentence of the undesig-
nated matter following paragraph (4)—
(A) 
by 
inserting 
‘‘or 
section 
128(b)(2)(C)(ii),’’ after ‘‘128(a),’’; and 
(B) 
by 
inserting 
‘‘or 
section 
128(b)(2)(C)(ii)’’ before the period. 
(c) EFFECTIVE DATES.—
(1) GENERAL
DISCLOSURES.—Except as pro-
vided in paragraph (2), the amendments made by 
subsection (a) shall become effective 12 months after 
the date of enactment of this Act. 
(2) VARIABLE INTEREST RATES.—Subparagraph 
(C) of section 128(b)(2) of the Truth in Lending Act 
(15 U.S.C. 1638(b)(2)(C)), as added by subsection (a) 
of this section, shall become effective on the earlier 
of—
(A) the compliance date established by the 
Board for such purpose, by regulation; or 
(B) 30 months after the date of enactment 
of this Act.
SEC. 503. COMMUNITY DEVELOPMENT INVESTMENT AU-
THORITY FOR DEPOSITORY INSTITUTIONS. 
(a) DEPOSITORY INSTITUTION COMMUNITY DEVELOP-
MENT INVESTMENTS.—
(1) NATIONAL BANKS.—The first sentence of the 
paragraph designated as the ‘‘Eleventh’’ of section 
5136 of the Revised Statutes of the United States (12 
U.S.C. 24) (as amended by section 305(a) of the Fi-
nancial Services Regulatory Relief Act of 2006) is 
amended by striking ‘‘promotes the public welfare by 
benefitting primarily’’ and inserting ‘‘is designed pri-
marily to promote the public welfare, including the 
welfare of’’. 
(2) STATE MEMBER BANKS.—The first sentence 
of the 23rd paragraph of section 9 of the Federal Re-
serve Act (12 U.S.C. 338a) is amended by striking 
‘‘promotes the public welfare by benefitting pri-
marily’’ and inserting ‘‘is designed primarily to pro-
mote the public welfare, including the welfare of’’. 
SEC. 504. FEDERAL HOME LOAN BANK REFINANCING AU-
THORITY FOR CERTAIN RESIDENTIAL MORT-
GAGE LOANS. 
Section 10(j)(2) of the Federal Home Loan Bank Act 
(12 U.S.C. 1430(j)(2) is amended—
(1) in subparagraph (A), by striking ‘‘or’’ at the 
end;
‘‘(12) 
SPECIAL
RULES
FOR
SUBPRIME 
REFINANCINGS.—
‘‘(A) IN GENERAL.—Notwithstanding the re-
quirements of subsection (i)(1), the proceeds of a 
qualified mortgage issue may be used to refi-
nance a mortgage on a residence which was 
originally financed by the mortgagor through a 
qualified subprime loan. 
‘‘(B) SPECIAL
RULES.—In applying this 
paragraph to any case in which the proceeds of 
a qualified mortgage issue are used for any refi-
nancing described in subparagraph (A)—
‘‘(i) subsection (a)(2)(D)(i) (relating to 
proceeds must be used within 42 months of 
date of issuance) shall be applied by sub-
stituting ‘12-month period’ for ‘42-month 
period’ each place it appears, 
‘‘(ii) subsection (d) (relating to 3-year 
requirement) shall not apply, and 
‘‘(iii) subsection (e) (relating to pur-
chase price requirement) shall be applied by 
using the market value of the residence at 
the time of refinancing in lieu of the acqui-
sition cost.
‘‘(C) QUALIFIED
SUBPRIME
LOAN.—The 
term ‘qualified subprime loan’ means an adjust-
able rate single-family residential mortgage loan 
originated after December 31, 2001, and before 
January 1, 2008, that the bond issuer determines 
would be reasonably likely to cause financial 
hardship to the borrower if not refinanced. 
‘‘(D) TERMINATION.—This paragraph shall 
not apply to any bonds issued after December 
31, 2010.’’. 
(b) INCREASED VOLUME CAP FOR CERTAIN BONDS.—
(1) IN GENERAL.—Subsection (d) of section 146 
of the Internal Revenue Code of 1986 (relating to 
State ceiling) is amended by adding at the end the 
following new paragraph: 
‘‘(5) INCREASE AND SET ASIDE FOR HOUSING 
BONDS FOR 2008.—
‘‘(A) INCREASE FOR 2008.—In the case of 
calendar year 2008, the State ceiling for each 
State shall be increased by an amount equal to 
the greater of—
‘‘(i) $10,000,000,000 multiplied by a 
fraction—
‘‘(I) the numerator of which is the 
population of such State, and
‘‘(II) the denominator of which is 
the total population of all States, or 
‘‘(ii) the amount determined under 
subparagraph (B). 
‘‘(B) MINIMUM AMOUNT.—The amount de-
termined under this subparagraph is—
‘‘(i) in the case of a State (other than 
a possession), $90,300,606, and 
‘‘(ii) in the case of a possession of the 
United States with a population less than 
the least populous State (other than a pos-
session), the product of—
‘‘(I) a fraction the numerator of 
which is $90,300,606 and the denomi-
nator of which is population of the 
least populous State (other than a pos-
session), and 
‘‘(II) the population of such pos-
session. 
In the case of any possession of the United 
States not described in clause (ii), the 
amount determined under this subpara-
graph shall be zero. 
‘‘(C) SET ASIDE.—
‘‘(i) IN GENERAL.—Any amount of the 
State ceiling for any State which is attrib-
utable to an increase under this paragraph 
shall be allocated solely for one or more 
qualified purposes. 
‘‘(ii) QUALIFIED PURPOSE.—For pur-
poses of this paragraph, the term ‘qualified 
purpose’ means—
‘‘(I) the issuance of exempt facil-
ity bonds used solely to provide quali-
fied residential rental projects, or 
‘‘(II) a qualified mortgage issue 
(determined by substituting ‘12-month 
period’ for ‘42-month period’ each 
place 
it 
appears 
in 
section 
143(a)(2)(D)(i)).’’. 
(2) CARRYFORWARD OF UNUSED LIMITATIONS.—
Subsection (f) of section 146 of such Code (relating to 
elective carryforward of unused limitation for speci-
fied purpose) is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(6) SPECIAL RULES FOR INCREASED VOLUME 
CAP UNDER SUBSECTION (d)(5).—
‘‘(A) IN GENERAL.—No amount which is at-
tributable to the increase under subsection (d)(5) 
may be used—
‘‘(i) for a carryforward purpose other 
than a qualified purpose (as defined in sub-
section (d)(5)), and 
‘‘(ii) to issue any bond after calendar 
year 2010. 
‘‘(B) ORDERING RULES.—For purposes of 
subparagraph (A), any carryforward of an 
issuing authority’s volume cap for calendar year 
2008 shall be treated as attributable to such in-
crease to the extent of such increase.’’. 
(c) ALTERNATIVE MINIMUM TAX EXEMPTION
FOR 
QUALIFIED MORTGAGE BONDS, QUALIFIED VETERANS’ 
MORTGAGE BONDS, AND BONDS FOR QUALIFIED RESIDEN-
TIAL RENTAL PROJECTS.—
(1) 
IN
GENERAL.—Clause 
(ii) 
of 
section 
57(a)(5)(C) of the Internal Revenue Code of 1986 (re-
lating to specified private activity bonds) is amended 
by striking ‘‘shall not include’’ and all that follows 
and inserting ‘‘shall not include—
‘‘(I) any qualified 501(c)(3) bond 
(as defined in section 145), or
‘‘(II) any qualified mortgage bond 
(as defined in section 143(a)), any 
qualified veterans’ mortgage bond (as 
defined in section 143(b)), or any ex-
empt facility bond (as defined in sec-
tion 142(a)) issued as part of an issue 
95 percent or more of the net proceeds 
of which are to be used to provide 
qualified residential rental projects (as 
defined in section 142(d)), but only if 
such bond is issued after the date of the 
enactment of this subclause and before 
January 1, 2011. 
Subclause (II) shall not apply to a refund-
ing bond unless such subclause applied to 
the refunded bond (or in the case of a series 
of refundings, the original bond).’’. 
(2) CONFORMING AMENDMENT.—The heading for 
section 57(a)(5)(C)(ii) of such Code is amended by 
striking ‘‘QUALIFIED 501(c)(3) BONDS’’ and inserting 
‘‘CERTAIN BONDS’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to bonds issued after the date of the en-
actment of this Act.
‘‘(3) REPORTING REQUIREMENT.—Rules similar 
to the rules of section 1400C(f) (as so in effect) shall 
apply for purposes of this section. 
‘‘(g) BASIS ADJUSTMENT.—For purposes of this sub-
title, if a credit is allowed under this section with respect 
to the purchase of any residence, the basis of such residence 
shall be reduced by the amount of the credit so allowed.’’. 
(b) CONFORMING AMENDMENTS.—
(1) Section 24(b)(3)(B) of the Internal Revenue 
Code of 1986 is amended by striking ‘‘and 25B’’ and 
inserting ‘‘, 25B, and 25E’’. 
(2) Section 25(e)(1)(C)(ii) of such Code is 
amended by inserting ‘‘25E,’’ after ‘‘25D,’’. 
(3) Section 25B(g)(2) of such Code is amended 
by striking ‘‘section 23’’ and inserting ‘‘sections 23 
and 25E’’. 
(4) Section 25D(c)(2) of such Code is amended 
by striking ‘‘and 25B’’ and inserting ‘‘25B, and 
25E’’. 
(5) Section 26(a)(1) of such Code is amended by 
striking ‘‘and 25B’’ and inserting ‘‘25B, and 25E’’. 
(6) Section 904(i) of such Code is amended by 
striking ‘‘and 25B’’ and inserting ‘‘25B, and 25E’’. 
(7) Subsection (a) of section 1016 of such Code 
is amended by striking ‘‘and’’ at the end of para-
graph (36), by striking the period at the end of para-
graph (37) and inserting ‘‘, and’’, and by adding at 
the end the following new paragraph: 
‘‘(38) to the extent provided in section 25E(g).’’. 
(8) Section 1400C(d)(2) of such Code is amended 
by striking ‘‘and 25D’’ and inserting ‘‘25D, and 
25E’’. 
(c) CLERICAL AMENDMENT.—The table of sections for 
subpart A of part IV of subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting 
after the item relating to section 25D the following new 
item:
‘‘Sec. 25E. Credit for certain home purchases.’’.
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to purchases in taxable years ending 
after the date of the enactment of this Act. 
(e) APPLICATION OF EGTRRA SUNSET.—The amend-
ment made by subsection (b)(1) shall be subject to title IX 
of the Economic Growth and Tax Relief Reconciliation Act 
of 2001 in the same manner as the provisions of such Act 
to which such amendment relates. 
SEC. 604. ADDITIONAL STANDARD DEDUCTION FOR REAL 
PROPERTY TAXES FOR NONITEMIZERS. 
(a) IN GENERAL.—Section 63(c)(1) of the Internal 
Revenue Code of 1986 (defining standard deduction) is 
amended by striking ‘‘and’’ at the end of subparagraph (A),
by striking the period at the end of subparagraph (B) and 
inserting ‘‘, and’’, and by adding at the end the following 
new subparagraph: 
‘‘(C) in the case of any taxable year begin-
ning in 2008, the real property tax deduction.’’. 
(b) DEFINITION.—Section 63(c) of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new paragraph: 
‘‘(8) REAL PROPERTY TAX DEDUCTION.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the real property tax deduction is so 
much of the amount of the eligible State and 
local real property taxes paid or accrued by the 
taxpayer during the taxable year which do not 
exceed $500 ($1,000 in the case of a joint re-
turn). 
‘‘(B) ELIGIBLE
STATE
AND
LOCAL
REAL 
PROPERTY
TAXES.—For purposes of subpara-
graph (A), the term ‘eligible State and local real 
property taxes’ means State and local real prop-
erty taxes (within the meaning of section 164), 
but only if the rate of tax for all residential real 
property taxes in the jurisdiction has not been 
increased at any time after April 2, 2008, and 
before January 1, 2009.’’.
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2007. 
SEC. 605. ELECTION TO ACCELERATE AMT AND R AND D 
CREDITS IN LIEU OF BONUS DEPRECIATION. 
(a) IN GENERAL.—Section 168(k), as amended by this 
Act, is amended by adding at the end the following new 
paragraph: 
‘‘(5) ELECTION TO ACCELERATE AMT AND R AND 
D CREDITS IN LIEU OF BONUS DEPRECIATION.—
‘‘(A) IN GENERAL.—If a corporation which 
is an eligible taxpayer (within the meaning of 
paragraph (4)) for purposes of this subsection 
elects to have this paragraph apply—
‘‘(i) no additional depreciation shall be 
allowed under paragraph (1) for any quali-
fied property placed in service during any 
taxable year to which paragraph (1) would 
otherwise apply, and 
‘‘(ii) the limitations described in sub-
paragraph (B) for such taxable year shall 
be increased by an aggregate amount not in 
excess of the bonus depreciation amount for 
such taxable year.
‘‘(B) LIMITATIONS TO BE INCREASED.—The 
limitations described in this subparagraph are—
‘‘(i) the limitation under section 38(c), 
and 
‘‘(ii) the limitation under section 
53(c). 
‘‘(C) BONUS DEPRECIATION AMOUNT.—For 
purposes of this paragraph—
‘‘(i) IN GENERAL.—The bonus depre-
ciation amount for any applicable taxable 
year is an amount equal to the product of 
20 percent and the excess (if any) of—
‘‘(I) the aggregate amount of de-
preciation which would be determined 
under this section for property placed 
in service during the taxable year if no 
election under this paragraph were 
made, over 
‘‘(II) the aggregate amount of de-
preciation allowable under this section 
for property placed in service during 
the taxable year. 
In the case of property which is a passenger 
aircraft, the amount determined under sub-
clause (I) shall be calculated without regard
to the written binding contract limitation 
under paragraph (2)(A)(iii)(I). 
‘‘(ii) 
ELIGIBLE
QUALIFIED
PROP-
ERTY.—For purposes of clause (i), the term 
‘eligible qualified property’ means qualified 
property under paragraph (2), except that 
in applying paragraph (2) for purposes of 
this clause—
‘‘(I) ‘March 31, 2008’ shall be 
substituted for ‘December 31, 2007’ 
each place it appears in subparagraph 
(A) and clauses (i) and (ii) of sub-
paragraph (E) thereof, 
‘‘(II) only adjusted basis attrib-
utable to manufacture, construction, or 
production after March 31, 2008, and 
before January 1, 2009, shall be taken 
into 
account 
under 
subparagraph 
(B)(ii) thereof, and 
‘‘(III) in the case of property 
which is a passenger aircraft, the writ-
ten binding contract limitation under 
subparagraph (A)(iii)(I) thereof shall 
not apply.
‘‘(i) IN GENERAL.—Subject to clauses 
(ii) and (iii), the taxpayer shall, at such 
time and in such manner as the Secretary 
may prescribe, specify the portion (if any) 
of the bonus depreciation amount which is 
to be allocated to each of the limitations de-
scribed in subparagraph (B). 
‘‘(ii) BUSINESS CREDIT LIMITATION.—
The portion of the bonus depreciation 
amount allocated to the limitation described 
in subparagraph (B)(i) shall not exceed an 
amount equal to the portion of the credit al-
lowable under section 38 for the taxable 
year which is allocable to business credit 
carryforwards to such taxable year which 
are—
‘‘(I) from taxable years beginning 
before January 1, 2006, and 
‘‘(II) properly allocable (deter-
mined under the rules of section 38(d)) 
to the research credit determined under 
section 41(a). 
‘‘(iii) 
ALTERNATIVE
MINIMUM
TAX 
CREDIT
LIMITATION.—The portion of the 
bonus depreciation amount allocated to the
limitation 
described 
in 
subparagraph 
(B)(ii) shall not exceed an amount equal to 
the portion of the minimum tax credit al-
lowable under section 53 for the taxable 
year which is allocable to the adjusted min-
imum tax imposed for taxable years begin-
ning before January 1, 2006. 
‘‘(E) CREDIT REFUNDABLE.—Any aggregate 
increases in the credits allowed under section 38 
or 53 by reason of this paragraph shall, for pur-
poses of this title, be treated as a credit allowed 
to the taxpayer under subpart C of part IV of 
subchapter A. 
‘‘(F) OTHER RULES.—
‘‘(i) ELECTION.—Any election under 
this paragraph (including any allocation 
under subparagraph (D)) may be revoked 
only with the consent of the Secretary. 
‘‘(ii) DEDUCTION
ALLOWED
IN
COM-
PUTING
MINIMUM
TAX.—Notwithstanding 
this paragraph, paragraph (2)(G) shall 
apply with respect to the deduction com-
puted under this section (after application 
of this paragraph) with respect to property
100
placed in service during any applicable tax-
able year.’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to property placed in service after De-
cember 31, 2007, in taxable years ending after such date. 
SEC. 606. USE OF AMENDED INCOME TAX RETURNS TO 
TAKE INTO ACCOUNT RECEIPT OF CERTAIN 
HURRICANE-RELATED 
CASUALTY 
LOSS 
GRANTS 
BY 
DISALLOWING 
PREVIOUSLY 
TAKEN CASUALTY LOSS DEDUCTIONS. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of the Internal Revenue Code of 1986, if a taxpayer 
claims a deduction for any taxable year with respect to a 
casualty loss to a personal residence (within the meaning 
of section 121 of such Code) resulting from Hurricane 
Katrina, Hurricane Rita, or Hurricane Wilma and in a 
subsequent taxable year receives a grant under Public Law 
109–148, 109–234, or 110–116 as reimbursement for such 
loss, such taxpayer may elect to file an amended income 
tax return for the taxable year in which such deduction was 
allowed and disallow such deduction. If elected, such 
amended return must be filed not later than the due date 
for filing the tax return for the taxable year in which the 
taxpayer receives such reimbursement or the date that is 
4 months after the date of the enactment of this Act, which-
101
ever is later. Any increase in Federal income tax resulting 
from such disallowance if such amended return is filed—
(1) shall be subject to interest on the underpaid 
tax for one year at the underpayment rate determined 
under section 6621(a)(2) of such Code; and 
(2) shall not be subject to any penalty under 
such Code. 
(b) EMERGENCY DESIGNATION.—For purposes of Sen-
ate enforcement, all provisions of this section are designated 
as emergency requirements and necessary to meet emer-
gency needs pursuant to section 204 of S. Con. Res. 21 
(110th Congress), the concurrent resolution on the budget 
for fiscal year 2008. 
SEC. 607. WAIVER OF DEADLINE ON CONSTRUCTION OF GO 
ZONE PROPERTY ELIGIBLE FOR BONUS DE-
PRECIATION. 
(a) IN
GENERAL.—Subparagraph (B) of section 
1400N(d)(3) of the Internal Revenue Code of 1986 is 
amended to read as follows: 
‘‘(B) without regard to ‘and before January 
1, 2009’ in clause (i) thereof,’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to property placed in service after De-
cember 31, 2007.
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(c) EMERGENCY DESIGNATION.—For purposes of Sen-
ate enforcement, all provisions of this section are designated 
as emergency requirements and necessary to meet emer-
gency needs pursuant to section 204 of S. Con. Res. 21 
(110th Congress), the concurrent resolution on the budget 
for fiscal year 2008. 
SEC. 608. TEMPORARY TAX RELIEF FOR KIOWA COUNTY, 
KANSAS AND SURROUNDING AREA. 
(a) IN GENERAL.—The following provisions of or relat-
ing to the Internal Revenue Code of 1986 shall apply, in 
addition to the areas described in such provisions, to an 
area with respect to which a major disaster has been de-
clared by the President under section 401 of the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act 
(FEMA–1699–DR, as in effect on the date of the enactment 
of this Act) by reason of severe storms and tornados begin-
ning on May 4, 2007, and determined by the President to 
warrant individual or individual and public assistance 
from the Federal Government under such Act with respect 
to damages attributed to such storms and tornados: 
(1) SUSPENSION OF CERTAIN LIMITATIONS ON 
PERSONAL CASUALTY LOSSES.—Section 1400S(b)(1) 
of the Internal Revenue Code of 1986, by substituting 
‘‘May 4, 2007’’ for ‘‘August 25, 2005’’.