TASK DEFINITION: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
PROBLEM: SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

    (a) Short Title.--This Act may be cited as the ``Working Family 
Child Care Tax Relief Act of 1996''.
    (b) Amendment of  1986 Code.--Except as otherwise expressly 
provided, whenever in this Act 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.

SEC. 2. EXPANSION OF CHILD AND DEPENDENT CARE CREDIT.

    (a) Increase in Credit.--Paragraph (2) of section 21(a) (relating 
to credit for expenses for household and dependent care services 
necessary for gainful employment) is amended to read as follows:
            ``(2) Applicable percentage defined.--For purposes of 
        paragraph (1), the term `applicable percentage' means 30 
        percent reduced (but not below 20 percent) by 1 percentage 
        point for each $3,000 (or fraction thereof) by which the 
        taxpayer's adjusted gross income exceeds $50,000.''
    (b) Increase in Maximum Amount Creditable.--
            (1) In general.--Section 21(c) (relating to dollar limit on 
        amount creditable) is amended--
                    (A) by striking ``$2,400'' in paragraph (1) and 
                inserting ``$4,000'', and
                    (B) by striking ``$4,800'' in paragraph (2) and 
                inserting ``$8,000''.
            (2) Phaseout for taxpayers with adjusted gross income in 
        excess of $50,000.--
                    (A) In general.--Section 21(c) is amended by adding 
                at the end the following new paragraph:
            ``(2) Limitation based on adjusted gross income.--If the 
        taxpayer's adjusted gross income for the taxable year exceeds 
        $50,000, the applicable dollar amount under paragraph (1) shall 
        be reduced as follows:
                    ``(A) The $4,000 amount under paragraph (1)(A) 
                shall be reduced (but not below $2,400) by $53.33 for 
                each $1,000 (or fraction thereof) of such excess.
                    ``(B) The $8,000 amount under paragraph (1)(B) 
                shall be reduced (but not below $4,800) by $106.66 for 
                each $1,000 (or fraction thereof) of such excess.''
            (2) Conforming amendments.--Section 21(c), as amended by 
        subsection (b), is amended--
                    (A) by striking ``The amount'' and inserting:
            ``(1) In general.--The amount'',
                    (B) by redesignating paragraphs (1) and (2) as 
                subparagraphs (A) and (B), respectively, and
                    (C) by striking ``paragraph (1) or (2)'' and 
                inserting ``subparagraph (A) or (B)''.
    (c) Credit Made Refundable.--
            (1) In general.--Section 21 (relating to credit for 
        expenses for household and dependent care services), as amended 
        by this section, is transferred to subpart C of part IV of 
        subchapter A of chapter 1, inserted after section 35, and 
        redesignated as section 36.
            (2) Conforming amendments.--
                    (A) Section 129 is amended--
                            (i) by striking ``21(e)'' in subsection 
                        (a)(2)(C) and inserting ``36(e)'',
                            (ii) by striking ``21(d)(2)'' in subsection 
                        (b)(2) and inserting ``36(d)(2)'', and
                            (iii) by striking ``21(b)(2)'' in 
                        subsection (e)(1) and inserting ``36(b)(2)''.
                    (B) Section 213(e) is amended by striking ``section 
                21'' and inserting ``section 36''.
            (3) Clerical amendments.--
                    (A) The table of sections for subpart A of part IV 
                of subchapter A of chapter 1 is amended by striking the 
                item relating to section 21.
                    (B) The table of sections for subpart C of part IV 
                of subchapter A of chapter 1 is amended by adding at 
                the end the following new item:

                              ``Sec. 36. Expenses for household and 
                                        dependent care services 
                                        necessary for gainful 
                                        employment.''
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1997.

SEC. 3. OFFSETS OF REVENUE LOSS.

    (a) Modifications to Foreign Earned Income Exclusion.--
            (1) Repeal of $70,000 exclusion.--Paragraph (1) of section 
        911(a) (relating to exclusion from gross income) is amended by 
        inserting ``in the case of taxable years beginning before 
        January 1, 1998,'' before ``the foreign earned income''.
            (2) Qualified schooling expenses.--
                    (A) In general.--Section 911(a) is amended by 
                striking ``and'' at the end of paragraph (1), by 
                striking the period at the end of paragraph (2) and 
                inserting ``, and'', and by adding at the end the 
                following new paragraph:
            ``(3) the qualified schooling expenses of such 
        individual.''
                    (B) Qualified schooling expenses.--Section 911 is 
                amended by redesignating subsections (e) and (f) as 
                subsections (f) and (g) and by inserting after 
                subsection (d) the following new subsection:
    ``(e) Qualified Schooling Expenses.--For purposes of this section--
            ``(1) In general.--For purposes of this section, the term 
        `qualified schooling expenses' means the reasonable schooling 
        expenses paid or incurred by or on behalf of the individual 
        during the taxable year for the education of each dependent of 
        the individual at the elementary or secondary level. For 
        purposes of the preceding sentence, the elementary or secondary 
        level means education which is the equivalent of education from 
        the kindergarten through the 12th grade in a United States-type 
        school.
            ``(2) Expenses included.--For purposes of paragraph (1), 
        the term `schooling expenses' means the cost of tuition, fees, 
        books, and local transportation and of other expenses required 
        by the school. Except as provided in paragraph (3), such term 
        does not include expenses of room and board or expenses of 
        transportation other than local transportation.
            ``(3) Room, board, and travel allowed in certain cases.--If 
        an adequate United States-type school is not available within a 
        reasonable commuting distance of the individual's tax home, the 
        expenses of room and board of the dependent and the expenses of 
        the transportation of the dependent each school year between 
        such tax home and the location of the school shall be treated 
        as schooling expenses.
            ``(4) Determination of reasonable expenses.--If--
                    ``(A) there is an adequate United States-type 
                school available within a reasonable commuting distance 
                of the individual's tax home, and
                    ``(B) the dependent attends a school other than the 
                school referred to in subparagraph (A),
        then the amount taken into account under paragraph (2) shall 
        not exceed the aggregate amount which would be charged for the 
        period by the school referred to in subparagraph (A).
            ``(5) Period taken into account.--An amount shall be taken 
        into account as a qualified schooling expense only if it is 
        attributable to education for a period during which the 
        individual's tax home is in a foreign country.
            ``(6) Special rules where schooling expenses not provided 
        by employer.--
                    ``(A) In general.--To the extent the qualified 
                schooling expenses of any individual for any taxable 
                year is not attributable to employer provided amounts, 
                such expenses shall be treated as a deduction allowable 
                in computing adjusted gross income to the extent of the 
                limitation of subparagraph (B).
                    ``(B) Limitation.--For purposes of subparagraph 
                (A), the limitation of this subparagraph is the excess 
                of--
                            ``(i) the foreign earned income of the 
                        individual for the taxable year, over
                            ``(ii) the amount of such income excluded 
                        from gross income under subsection (a) for the 
                        taxable year.
                    ``(C) 1-year carryover of expenses not allowed by 
                reason of subparagraph (b).--
                            ``(i) In general.--The amount not allowable 
                        as a deduction for any taxable year under 
                        subparagraph (A) by reason of the limitation of 
                        subparagraph (B) shall be treated as a 
                        deduction allowable in computing adjusted gross 
                        income for the succeeding taxable year (and 
                        only for the succeeding taxable year) to the 
                        extent of the limitation of clause (ii) for 
                        such succeeding taxable year.
                            ``(ii) Limitation.--For purposes of clause 
                        (i), the limitation of this clause for any 
                        taxable year is the excess of--
                                    ``(I) the limitation of 
                                subparagraph (B) for such taxable year, 
                                over
                                    ``(II) amounts treated as a 
                                deduction under subparagraph (A) for 
                                such taxable year.
                    ``(D) Employer provided amounts.--For purposes of 
                this paragraph, the term `employer provided amounts' 
                means any amount paid or incurred on behalf of the 
                individual by the individual's employer which is 
                foreign earned income included in the individual's 
                gross income for the taxable year (without regard to 
                this section).''
                    (C) Conforming amendment.--Section 911(d)(7) is 
                amended by inserting ``or (e)(6)(A)'' after 
                ``subsection (c)(3)(A)''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after December 31, 1997.
    (b) Savings From Welfare Reform.--If there is an overall decrease 
in Federal revenues for any fiscal year by reason of this Act (without 
regard to this subsection), such decrease shall be offset by the 
decrease in Federal expenditures for such fiscal year by reason of the 
amendments made by, and provisions of, the Personal Responsibility and 
Work Opportunity Reconciliation Act of 1996 (Public Law 104-193).

SOLUTION: Working Family Child Care Tax Relief Act of 1996 - Amends the Internal Revenue Code with respect to the child and dependent care credit to:  (1) increase such credit and make it refundable; and (2) provide it with an income-based phaseout and limitation. 
Eliminates the foreign earned income exclusion as of a specified date.  Allows an exclusion for overseas qualified elementary and secondary schooling expenses.

PROBLEM: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Little Shell Tribe of Chippewa 
Indians Restoration Act of 2007''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) the Little Shell Tribe of Chippewa Indians is a 
        political successor to signatories of the Pembina Treaty of 
        1863, under which a large area of land in the State of North 
        Dakota was ceded to the United States;
            (2) the Turtle Mountain Band of Chippewa of North Dakota 
        and the Chippewa-Cree Tribe of the Rocky Boy's Reservation of 
        Montana, which also are political successors to the signatories 
        of the Pembina Treaty of 1863, have been recognized by the 
        Federal Government as distinct Indian tribes;
            (3) the members of the Little Shell Tribe continue to live 
        in the State of Montana, as their ancestors have for more than 
        100 years since ceding land in the State of North Dakota as 
        described in paragraph (1);
            (4) in the 1930s and 1940s, the Tribe repeatedly petitioned 
        the Federal Government for reorganization under the Act of June 
        18, 1934 (25 U.S.C. 461 et seq.) (commonly known as the 
        ``Indian Reorganization Act'');
            (5) Federal agents who visited the Tribe and Commissioner 
        of Indian Affairs John Collier attested to the responsibility 
        of the Federal Government for the Tribe and members of the 
        Tribe, concluding that members of the Tribe are eligible for, 
        and should be provided with, trust land, making the Tribe 
        eligible for reorganization under the Act of June 18, 1934 (25 
        U.S.C. 461 et seq.) (commonly known as the ``Indian 
        Reorganization Act'');
            (6) due to a lack of Federal appropriations during the 
        Depression, the Bureau of Indian Affairs lacked adequate 
        financial resources to purchase land for the Tribe, and the 
        members of the Tribe were denied the opportunity to reorganize;
            (7) in spite of the failure of the Federal Government to 
        appropriate adequate funding to secure land for the Tribe as 
        required for reorganization under the Act of June 18, 1934 (25 
        U.S.C. 461 et seq.) (commonly known as the ``Indian 
        Reorganization Act''), the Tribe continued to exist as a 
        separate community, with leaders exhibiting clear political 
        authority;
            (8) the Tribe, together with the Turtle Mountain Band of 
        Chippewa of North Dakota and the Chippewa-Cree Tribe of the 
        Rocky Boy's Reservation of Montana, filed 2 law suits under the 
        Act of August 13, 1946 (60 Stat. 1049) (commonly known as the 
        ``Indian Claims Commission Act''), to petition for additional 
        compensation for land ceded to the United States under the 
        Pembina Treaty of 1863 and the McCumber Agreement of 1892;
            (9) in 1971 and 1982, pursuant to Acts of Congress, the 
        tribes received awards for the claims described in paragraph 
        (8);
            (10) in 1978, the Tribe submitted to the Bureau of Indian 
        Affairs a petition for Federal recognition, which is still 
        pending as of the date of enactment of this Act; and
            (11) the Federal Government, the State of Montana, and the 
        other federally recognized Indian tribes of the State have had 
        continuous dealings with the recognized political leaders of 
        the Tribe since the 1930s.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Member.--The term ``member'' means an individual who is 
        enrolled in the Tribe pursuant to section 7.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (3) Tribe.--The term ``Tribe'' means the Little Shell Tribe 
        of Chippewa Indians of Montana.

SEC. 4. FEDERAL RECOGNITION.

    (a) In General.--Federal recognition is extended to the Tribe.
    (b) Effect of Federal Laws.--Except as otherwise provided in this 
Act, all Federal laws (including regulations) of general application to 
Indians and Indian tribes, including the Act of June 18, 1934 (25 
U.S.C. 461 et seq.) (commonly known as the ``Indian Reorganization 
Act''), shall apply to the Tribe and members.

SEC. 5. FEDERAL SERVICES AND BENEFITS.

    (a) In General.--Beginning on the date of enactment of this Act, 
the Tribe and each member shall be eligible for all services and 
benefits provided by the United States to Indians and federally 
recognized Indian tribes, without regard to--
            (1) the existence of a reservation for the Tribe; or
            (2) the location of the residence of any member on or near 
        an Indian reservation.
    (b) Service Area.--For purposes of the delivery of services and 
benefits to members, the service area of the Tribe shall be considered 
to be the area comprised of Blaine, Cascade, Glacier, and Hill Counties 
in the State of Montana.

SEC. 6. REAFFIRMATION OF RIGHTS.

    (a) In General.--Nothing in this Act diminishes any right or 
privilege of the Tribe or any member that existed before the date of 
enactment of this Act.
    (b) Claims of Tribe.--Except as otherwise provided in this Act, 
nothing in this Act alters or affects any legal or equitable claim of 
the Tribe to enforce any right or privilege reserved by, or granted to, 
the Tribe that was wrongfully denied to, or taken from, the Tribe 
before the date of enactment of this Act.

SEC. 7. MEMBERSHIP ROLL.

    (a) In General.--As a condition of receiving recognition, services, 
and benefits pursuant to this Act, the Tribe shall submit to the 
Secretary, by not later than 18 months after the date of enactment of 
this Act, a membership roll consisting of the name of each individual 
enrolled as a member of the Tribe.
    (b) Determination of Membership.--The qualifications for inclusion 
on the membership roll of the Tribe shall be determined in accordance 
with sections 1 through 3 of article 5 of the constitution of the Tribe 
dated September 10, 1977 (including amendments to the constitution).
    (c) Maintenance of Roll.--The Tribe shall maintain the membership 
roll under this section.

SEC. 8. TRANSFER OF LAND.

    (a) Homeland.--The Secretary shall acquire, for the benefit of the 
Tribe, trust title to 200 acres of land within the service area of the 
Tribe to be used for a tribal land base.
    (b) Additional Land.--The Secretary may acquire additional land for 
the benefit of the Tribe pursuant to section 5 of the Act of June 18, 
1934 (25 U.S.C. 465) (commonly known as the ``Indian Reorganization 
Act'').

SOLUTION: Little Shell Tribe of Chippewa Indians Restoration Act of 2007 - Extends federal recognition to the Little Shell Tribe of Chippewa Indians of Montana. Makes the Tribe and each member eligible for all services and benefits provided by the United States to Indians and federally recognized Indian tribes, without regard to the existence of a reservation for the Tribe or the location of the residence of any member on or near an Indian reservation.

Directs the Tribe, as a condition of receiving recognition, services, and benefits pursuant to this Act, to submit to the Secretary of the Interior a membership roll consisting of the name of each individual enrolled as a member of the Tribe. Requires the Tribe to maintain such membership roll.

Directs the Secretary to acquire, for the benefit of the Tribe, trust title to 200 acres of land within the Tribe's service area to be used for a tribal land base.

PROBLEM: SECTION 1. FINDINGS.

    The Congress makes the following findings:
            (1) Ensuring secure access to energy is in the highest 
        national security interests of the United States.
            (2) Without secure access to oil supplies, the United 
        States economy, which depends heavily on oil for 
        transportation, could be severely affected. Two-thirds of the 
        oil used in the United States is consumed by the transportation 
        sector.
            (3) In 1973 OPEC placed an embargo on sales of oil to the 
        United States, creating severe oil shortages and driving up oil 
        prices in the United States. OPEC's action was a major factor 
        in the recession which followed shortly thereafter.
            (4) Under the ``Carter Doctrine'', announced by President 
        Carter in 1980, ``An attempt by any outside forces to gain 
        control of the Persian Gulf region will be regarded as an 
        assault on the vital interests of the United States of America, 
        and such an assault will be repelled by any means necessary, 
        including military force.''.
            (5) Following the Iraqi invasion of Kuwait in 1990, the 
        United States sent more than 500,000 troops to the Persian Gulf 
        to expel the Iraqi troops, liberate Kuwait, protect Saudi 
        Arabia, and ensure access to Persian Gulf oil.
            (6) Many major oil producing nations do not share United 
        States values of democracy, freedom of expression, thought, and 
        religion, and equality for women.
            (7) During the Afghanistan conflict and the war on 
        terrorism, many oil producing nations did not openly support 
        the United States campaign to end the terror, and many of the 
        terrorists of September 11 came from major OPEC nations.
            (8) It is in the highest national security interests of the 
        United States to substantially reduce our dependence on oil as 
        soon as possible, to secure our access to oil supplies, and to 
        reduce our dependence on nations which do not share our 
        interests and values.
            (9) Because most oil is consumed by the transportation 
        sector, reduction of our dependence on oil can only come from 
        major increases in fuel efficiency in cars, sport utility 
        vehicles, light trucks, and other vehicles.

SEC. 2. FUEL EFFICIENCY VEHICLE CREDIT.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to foreign tax credit, 
etc.) is amended by adding at the end the following:

``SEC. 30B. FUEL EFFICIENCY VEHICLE CREDIT.

    ``(a) Allowance of Credit.--
            ``(1) Fuel economy not less than 40 miles per gallon.--At 
        the election of the taxpayer, there shall be allowed as a 
        credit against the tax imposed by this chapter for the taxable 
        year an amount equal to 25 percent of the cost of any qualified 
        fuel-effi cient vehicle placed in service by the taxpayer 
during the taxable year.
            ``(2) Fuel economy not less than 50 miles per gallon.--In 
        the case of a qualified fuel-efficient vehicle in which the 
        fuel economy (within the meaning of subsection (c)(1)) is not 
        less than 50 miles per gallon--
                    ``(A) paragraph (1) shall be applied by 
                substituting `35 percent' for `25 percent', and
                    ``(B) subsection (b) shall be applied by 
                substituting `$6,000' for $5,000'.
    ``(b) Limitation.--The amount of the credit allowed by subsection 
(a) shall not exceed $5,000.
    ``(c) Qualified Fuel-Efficient Vehicle.--For purposes of this 
section, the term `qualified fuel-efficient vehicle' means a motor 
vehicle (as defined in section 30(c)(2))--
            ``(1) in which the fuel economy (determined in accordance 
        with section 4064) of such vehicle is rated at not less than 40 
        miles per gallon,
            ``(2) which is--
                    ``(A) an automobile (as defined in section 
                4064(b)), or
                    ``(B) a truck or van with an unloaded gross vehicle 
                weight rating not greater than 7,500 pounds, and
            ``(3) which has received a certificate that such vehicle 
        meets or exceeds the Bin 5 Tier II emission level established 
        in regulations prescribed by the Administrator of the 
        Environmental Protection Agency under section 202(i) of the 
        Clean Air Act for that make and model year vehicle.
    ``(d) Special Rules.--
            ``(1) Basis reduction.--The basis of any property for which 
        a credit is allowable under subsection (a) shall be reduced by 
        the amount of such credit.
            ``(2) Recapture.--The Secretary shall, by regulations, 
        provide for recapturing the benefit of any credit allowable 
        under subsection (a) with respect to any property which ceases 
        to be property eligible for such credit.
            ``(3) Property used outside united states, etc. not 
        qualified.--No credit shall be allowed under subsection (a) 
        with respect to any property referred to in section 50(b) or 
        with respect to the portion of the cost of any property taken 
        into account under section 30, 179, or 179A.
    ``(e) Carryforward of Unused Credits.--If the credit allowable 
under subsection (a) for any taxable year exceeds--
            ``(1) the regular tax for the taxable year reduced by the 
        sum of the credits allowable under subpart A and this part 
        (other than this section), over
            ``(2) the tentative minimum tax for the taxable year,
such excess shall be carried to the succeeding taxable year and added 
to the credit allowable under subsection (a) for such taxable year.''.
    (b) Clerical Amendment.--The table of sections for such subpart B 
is amended by inserting after the item relating to section 30A the 
following new item:

                              ``Sec. 30B. Fuel-efficiency vehicle 
                                        credit.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.

SEC. 3. FUEL EFFICIENT VEHICLE ASSEMBLY CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business-related 
credits) is amended by adding at the end the following new section:

``SEC. 45G. FUEL-EFFICIENT VEHICLE ASSEMBLY CREDIT.

    ``(a) General Rule.--For purposes of section 38, the fuel-efficient 
vehicle assembly credit determined under this section for the taxable 
year is an amount equal to the product of $2,000 and the number of 
qualified fuel-efficient vehicles manufactured or produced in the 
United States by the taxpayer during the taxable year for their 1st 
retail sale.
    ``(b) Qualified Fuel-Efficient Vehicle.--For purposes of subsection 
(a), the term `qualified fuel-efficient vehicle' has the meaning given 
to such term by section 30B(c).
    ``(c) 1st Retail Sale.--For purposes of subsection (a), the term 
`1st retail sale' has the meaning given to such term by section 
4002.''.
    (b) Credit To Be Part of General Business Credit.--Subsection (b) 
of section 38 of such Code (relating to general business credit) is 
amended by striking ``plus'' at the end of paragraph (14), by striking 
the period at the end of paragraph (15) and inserting ``, plus'', and 
by adding at the end the following new paragraph:
            ``(16) the fuel-efficient vehicle assembly credit 
        determined under section 45G(a).''.
    (c) Conforming Amendment.--The table of sections for subpart D 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 45F the 
following new item:

                              ``Sec. 45G. Fuel-efficient vehicle 
                                        assembly credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.

SEC. 4. LOAN GUARANTEES.

    (a) General Authority.--The Secretary of Energy may provide loan 
guarantees to manufacturers of motor vehicles or of motor vehicle 
engines for the purposes described in subsection (b).
    (b) Eligible Purposes.--Loans guaranteed under this section shall 
be used for the costs of conversion from the manufacture of motor 
vehicles or engines achieving less than 40 miles per gallon of gasoline 
to the manufacture of motor vehicles or engines achieving more than 40 
miles per gallon of gasoline. Such loans may not be used for 
advertising or promotional costs.
    (c) Aggregate Amount of Loan Guarantees.--The aggregate amount of 
loans that may be guaranteed under this section at any one time shall 
not exceed $1,000,000,000.
    (d) Limitation on Loan Guarantee Size.--The Secretary shall not 
guarantee a loan under this section for an amount greater than 
$100,000,000.
    (e) Rates of Interest.--The Secretary shall not make a loan 
guarantee under this section if the interest rate for the loan exceeds 
that which the Secretary determines to be reasonable, taking into 
consideration the prevailing interest rates and customary fees incurred 
under similar obligations in the private capital market.
    (f) Ability To Repay.--The Secretary shall not make a loan 
guarantee under this section unless the Secretary has made a finding in 
writing that the recipient of the loan is likely to be able to repay 
the loan according to its terms.
    (g) Applications.--The Secretary shall prescribe the form and 
contents required of applications for assistance under this section, to 
enable the Secretary to determine the eligibility of the applicant's 
proposal, and shall establish terms and conditions for loan guarantees 
made under this section.
    (h) Full Faith and Credit.--All guarantees entered into by the 
Secretary under this section shall constitute general obligations of 
the United States backed by the full faith and credit of the United 
States.
    (i) Modifications.--The Secretary may approve the modification of 
any term or condition of a loan guarantee or loan guarantee commitment, 
including the rate of interest, time of payment of interest or 
principal, or security requirements, if the Secretary finds in writing 
that--
            (1) the modification is equitable and is in the overall 
        best interests of the United States; and
            (2) consent has been obtained from the applicant and the 
        holder of the obligation.
    (j) Default.--The Secretary shall prescribe regulations setting 
forth procedures in the event of default on a loan guaranteed under 
this section. The Secretary shall ensure that each loan guarantee made 
under this section contains terms and conditions that provide that--
            (1) if a payment of principal or interest under the loan is 
        in default for more than 30 days, the Secretary shall pay to 
        the holder of the obligation, or the holder's agent, the amount 
        of unpaid guaranteed interest;
            (2) if the default has continued for more than 90 days, the 
        Secretary shall pay to the holder of the obligation, or the 
        holder's agent, 90 percent of the unpaid guaranteed principal;
            (3) after final resolution of the default, through 
        liquidation or otherwise, the Secretary shall pay to the holder 
        of the obligation, or the holder's agent, any remaining amounts 
        guaranteed but which were not recovered through the default's 
        resolution;
            (4) the Secretary shall not be required to make any payment 
        under paragraphs (1) through (3) if the Secretary finds, before 
        the expiration of the periods described in such paragraphs, 
        that the default has been remedied; and
            (5) the holder of the obligation shall not receive payment 
        or be entitled to retain payment in a total amount which, 
        together with all other recoveries (including any recovery 
        based upon a security interest in equipment or facilities) 
        exceeds the actual loss of such holder.
    (k) Rights of the Secretary.--
            (1) Subrogation.--If the Secretary makes payment to a 
        holder, or a holder's agent, under subsection (j) in connection 
        with a loan guarantee made under this section, the Secretary 
        shall be subrogated to all of the rights of the holder with 
        respect to the obligor under the loan.
            (2) Disposition of property.--The Secretary may complete, 
        recondition, reconstruct, renovate, repair, maintain, operate, 
        charter, rent, sell, or otherwise dispose of any property or 
        other interests obtained pursuant to this section. The 
        Secretary shall not be subject to any Federal or State 
        regulatory requirements when carrying out this paragraph.
    (l) Action Against Obligor.--The Secretary may bring a civil action 
in an appropriate Federal court in the name of the holder of the 
obligation in the event of a default on a loan guaranteed under this 
section. The holder of a guarantee shall make available to the 
Secretary all records and evidence necessary to prosecute the civil 
action. The Secretary may accept property in full or partial 
satisfaction of any sums owed as a result of a default. If the 
Secretary receives, through the sale or other disposition of such 
property, an amount greater than the aggregate of--
            (1) the amount paid to the holder of a guarantee under 
        subsection (j); and
            (2) any other cost to the United States of remedying the 
        default,
the Secretary shall pay such excess to the obligor.
    (m) Breach of Conditions.--The Attorney General shall commence a 
civil action in an appropriate Federal court to enjoin any activity 
which the Secretary finds is in violation of this section, regulations 
issued hereunder, or any conditions which were duly agreed to, and to 
secure any other appropriate relief.
    (n) Attachment.--No attachment or execution may be issued against 
the Secretary, or any property in the control of the Secretary, prior 
to the entry of final judgment to such effect in any State, Federal, or 
other court.
    (o) Investigation Charge.--The Secretary may charge and collect 
from each applicant a reasonable charge for appraisal of the value of 
the equipment or facilities for which the loan guarantee is sought, and 
for making necessary determinations and findings. Such charge shall not 
aggregate more than one-half of 1 percent of the principal amount of 
the obligation.
    (p) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy for carrying out this section 
such sums as may be necessary for fiscal years 2006 through 2010.
    (q) Definitions.--For purposes of this section:
            (1) The term ``loan guarantee'' means any guarantee, 
        insurance, or other pledge with respect to the payment of all 
        or a part of the principal or interest on any debt obligation 
        of a non-Federal borrower to a non-Federal lender, but does not 
        include the insurance of deposits, shares, or other 
        withdrawable accounts in financial institutions.
            (2) The term ``loan guarantee commitment'' means a binding 
        agreement by the Secretary of Energy to make a loan guarantee 
        when specified conditions are fulfilled by the borrower, the 
        lender, or any other party to the guarantee agreement.
            (3) The term ``modification'' means any Government action 
        that alters the estimated cost of an outstanding loan guarantee 
        (or loan guarantee commitment) from the current estimate of 
        cash flows. This includes the sale of loan assets, with or 
        without recourse, and the purchase of guaranteed loans. This 
        also includes any action resulting from new legislation, or 
        from the exercise of administrative discretion under existing 
        law, that directly or indirectly alters the estimated cost of 
        outstanding loan guarantees (or loan guarantee commitments) 
        such as a change in collection procedures.

SEC. 5. PERMANENT EXTENSION OF RESEARCH
              CREDIT.

    (a) In General.--Section 41 of the Internal Revenue Code of 1986 
(relating to credit for increasing research activities) is amended by 
striking subsection (h).
    (b) Conforming Amendment.--Paragraph (1) of section 45C(b) of such 
Code is amended by striking subparagraph (D).
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after the date of the enactment of 
this Act.

SEC. 6. INCREASE IN RATES OF ALTERNATIVE INCREMENTAL CREDIT.

    (a) In General.--Subparagraph (A) of section 41(c)(4) of the 
Internal Revenue Code of 1986 (relating to election of alternative 
incremental credit) is amended--
            (1) by striking ``2.65 percent'' and inserting ``3 
        percent'',
            (2) by striking ``3.2 percent'' and inserting ``4 
        percent'', and
            (3) by striking ``3.75 percent'' and inserting ``5 
        percent''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.

SEC. 7. EXCLUSION OF QUALIFIED FUEL-EFFICIENT VEHICLES FROM CALCULATION 
              OF AVERAGE FUEL ECONOMY OF A MANUFACTURER.

    Section 32904(a) of title 49, United States Code, is amended by 
adding at the end the following:
    ``(3) In calculating the average fuel economy of a manufacturer 
under paragraph (1), the Administrator shall not consider any 
automobile manufactured by the manufacturer for which a credit is 
allowed under section 38(a)(16) of the Internal Revenue Code of 
1986.''.

SOLUTION:
Amends the Internal Revenue Code to: (1) allow a tax credit for 25 percent of the cost of certain automobiles, trucks, or vans with fuel efficiency ratings of not less than 40 miles per gallon (35 percent for ratings of not less than 50 miles per gallon); (2) allow a business tax credit for the manufacture or production in the United States of qualified fuel-efficient automobiles for first retail sale; (3) make permanent the tax credit for increasing research activities; and (4) increase the rates of the alternative incremental tax credit for research activities.

Authorizes the Secretary of Energy to provide loan guarantees up to $100 million per loan (up to $1 billion aggregate) to automobile manufacturers for the cost of converting to automobiles with a fuel efficiency rating of more than 40 miles per gallon.

Prohibits the Administrator of the Environmental Protection Agency (EPA) from considering any automobile allowed a fuel-efficiency tax credit under this Act in calculating the average fuel economy of a manufacturer.