Hiring Incentives to Restore Employment Act
PL 111-147 (H.R.2847), enacted 03/18/2010

124 STAT. 71 
PUBLIC LAW 111–147—MAR. 18, 2010 
Public Law 111–147 
111th Congress 
An Act 
Making appropriations for the Departments of Commerce and Justice, and Science, 
and Related Agencies for the fiscal year ending September 30, 2010, and for 
other purposes. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF CON-
TENTS. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘Hiring Incen-
tives to Restore Employment Act’’. 
(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. 
(c) TABLE OF CONTENTS.—The table of contents for this Act 
is as follows: 
Sec. 1. Short title; amendment of 1986 Code; table of contents. 
TITLE I—INCENTIVES FOR HIRING AND RETAINING UNEMPLOYED 
WORKERS 
Sec. 101. Payroll tax forgiveness for hiring unemployed workers. 
Sec. 102. Business credit for retention of certain newly hired individuals in 2010. 
TITLE II—EXPENSING 
Sec. 201. Increase in expensing of certain depreciable business assets. 
TITLE III—QUALIFIED TAX CREDIT BONDS 
Sec. 301. Issuer allowed refundable credit for certain qualified tax credit bonds. 
TITLE IV—EXTENSION OF CURRENT SURFACE TRANSPORTATION 
PROGRAMS 
Sec. 401. Short title. 
Subtitle A—Federal-aid Highways 
Sec. 411. In general. 
Sec. 412. Administrative expenses. 
Sec. 413. Rescission of unobligated balances. 
Sec. 414. Reconciliation of funds. 
Subtitle B—National Highway Traffic Safety Administration, Federal Motor Carrier 
Safety Administration, and Additional Programs 
Sec. 421. Extension of National Highway Traffic Safety Administration Highway 
Safety Programs. 
Sec. 422. Extension of Federal Motor Carrier Safety Administration Programs. 
Sec. 423. Additional programs. 
Subtitle C—Public Transportation Programs 
Sec. 431. Allocation of funds for planning programs. 
26 USC 1 note. 
Hiring Incentives 
to Restore 
Employment Act. 
Mar. 18, 2010 
[H.R. 2847] 
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124 STAT. 72 
PUBLIC LAW 111–147—MAR. 18, 2010 
Sec. 432. Special rule for urbanized area formula grants. 
Sec. 433. Allocating amounts for capital investment grants. 
Sec. 434. Apportionment of formula grants for other than urbanized areas. 
Sec. 435. Apportionment based on fixed guideway factors. 
Sec. 436. Authorizations for public transportation. 
Sec. 437. Amendments to SAFETEA–LU. 
Subtitle D—Revenue Provisions 
Sec. 441. Repeal of provision prohibiting the crediting of interest to the Highway 
Trust Fund. 
Sec. 442. Restoration of certain foregone interest to Highway Trust Fund. 
Sec. 443. Treatment of certain amounts appropriated to Highway Trust Fund. 
Sec. 444. Termination of transfers from highway trust fund for certain repayments 
and credits. 
Sec. 445. Extension of authority for expenditures. 
Sec. 446. Level of obligation limitations. 
Subtitle E—Disadvantaged Business Enterprises 
Sec. 451. Disadvantaged business enterprises. 
TITLE V—OFFSET PROVISIONS 
Subtitle A—Foreign Account Tax Compliance 
PART I—INCREASED DISCLOSURE OF BENEFICIAL OWNERS 
Sec. 501. Reporting on certain foreign accounts. 
Sec. 502. Repeal of certain foreign exceptions to registered bond requirements. 
PART II—UNDER REPORTING WITH RESPECT TO FOREIGN ASSETS 
Sec. 511. Disclosure of information with respect to foreign financial assets. 
Sec. 512. Penalties for underpayments attributable to undisclosed foreign financial 
assets. 
Sec. 513. Modification of statute of limitations for significant omission of income in 
connection with foreign assets. 
PART III—OTHER DISCLOSURE PROVISIONS 
Sec. 521. Reporting of activities with respect to passive foreign investment compa-
nies. 
Sec. 522. Secretary permitted to require financial institutions to file certain returns 
related to withholding on foreign transfers electronically. 
PART IV—PROVISIONS RELATED TO FOREIGN TRUSTS 
Sec. 531. Clarifications with respect to foreign trusts which are treated as having 
a United States beneficiary. 
Sec. 532. Presumption that foreign trust has United States beneficiary. 
Sec. 533. Uncompensated use of trust property. 
Sec. 534. Reporting requirement of United States owners of foreign trusts. 
Sec. 535. Minimum penalty with respect to failure to report on certain foreign 
trusts. 
PART V—SUBSTITUTE DIVIDENDS AND DIVIDEND EQUIVALENT PAYMENTS RECEIVED 
BY FOREIGN PERSONS TREATED AS DIVIDENDS 
Sec. 541. Substitute dividends and dividend equivalent payments received by for-
eign persons treated as dividends. 
Subtitle B—Delay in Application of Worldwide Allocation of Interest 
Sec. 551. Delay in application of worldwide allocation of interest. 
Subtitle C—Budgetary Provisions 
Sec. 561. Time for payment of corporate estimated taxes. 
Sec. 562. PAYGO Compliance. 
TITLE I—INCENTIVES FOR HIRING AND 
RETAINING UNEMPLOYED WORKERS 
SEC. 101. PAYROLL TAX FORGIVENESS FOR HIRING UNEMPLOYED 
WORKERS. 
(a) IN GENERAL.—Section 3111 is amended by adding at the 
end the following new subsection: 
26 USC 3111. 
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124 STAT. 73 
PUBLIC LAW 111–147—MAR. 18, 2010 
‘‘(d) SPECIAL EXEMPTION FOR CERTAIN INDIVIDUALS HIRED IN 
2010.— 
‘‘(1) IN GENERAL.—Subsection (a) shall not apply to wages 
paid by a qualified employer with respect to employment during 
the period beginning on the day after the date of the enactment 
of this subsection and ending on December 31, 2010, of any 
qualified individual for services performed— 
‘‘(A) in a trade or business of such qualified employer, 
or 
‘‘(B) in the case of a qualified employer exempt from 
tax under section 501(a), in furtherance of the activities 
related to the purpose or function constituting the basis 
of the employer’s exemption under section 501. 
‘‘(2) QUALIFIED
EMPLOYER.—For purposes of this sub-
section— 
‘‘(A) IN GENERAL.—The term ‘qualified employer’ means 
any employer other than the United States, any State, 
or any political subdivision thereof, or any instrumentality 
of the foregoing. 
‘‘(B) TREATMENT
OF
EMPLOYEES
OF
POST-SECONDARY 
EDUCATIONAL
INSTITUTIONS.—Notwithstanding 
subpara-
graph (A), the term ‘qualified employer’ includes any 
employer which is a public institution of higher education 
(as defined in section 101(b) of the Higher Education Act 
of 1965). 
‘‘(3) QUALIFIED
INDIVIDUAL.—For purposes of this sub-
section, the term ‘qualified individual’ means any individual 
who— 
‘‘(A) begins employment with a qualified employer after 
February 3, 2010, and before January 1, 2011, 
‘‘(B) certifies by signed affidavit, under penalties of 
perjury, that such individual has not been employed for 
more than 40 hours during the 60-day period ending on 
the date such individual begins such employment, 
‘‘(C) is not employed by the qualified employer to 
replace another employee of such employer unless such 
other employee separated from employment voluntarily or 
for cause, and 
‘‘(D) is not an individual described in section 51(i)(1) 
(applied by substituting ‘qualified employer’ for ‘taxpayer’ 
each place it appears). 
‘‘(4) ELECTION.—A qualified employer may elect to have 
this subsection not apply. Such election shall be made in such 
manner as the Secretary may require. 
‘‘(5) SPECIAL RULE FOR FIRST CALENDAR QUARTER OF 2010.— 
‘‘(A) NONAPPLICATION
OF
EXEMPTION
DURING
FIRST 
QUARTER.—Paragraph (1) shall not apply with respect to 
wages paid during the first calendar quarter of 2010. 
‘‘(B) CREDITING OF FIRST QUARTER EXEMPTION DURING 
SECOND QUARTER.—The amount by which the tax imposed 
under subsection (a) would (but for subparagraph (A)) have 
been reduced with respect to wages paid by a qualified 
employer during the first calendar quarter of 2010 shall 
be treated as a payment against the tax imposed under 
subsection (a) with respect to the qualified employer for 
the second calendar quarter of 2010 which is made on 
the date that such tax is due.’’. 
Definition. 
Definition. 
Time period. 
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124 STAT. 74 
PUBLIC LAW 111–147—MAR. 18, 2010 
(b) COORDINATION WITH WORK OPPORTUNITY CREDIT.—Section 
51(c) is amended by adding at the end the following new paragraph: 
‘‘(5) COORDINATION WITH PAYROLL TAX FORGIVENESS.—The 
term ‘wages’ shall not include any amount paid or incurred 
to a qualified individual (as defined in section 3111(d)(3)) during 
the 1-year period beginning on the hiring date of such indi-
vidual by a qualified employer (as defined in section 3111(d)) 
unless such qualified employer makes an election not to have 
section 3111(d) apply.’’. 
(c) TRANSFERS TO FEDERAL OLD-AGE AND SURVIVORS INSURANCE 
TRUST FUND.—There are hereby appropriated to the Federal Old- 
Age and Survivors Trust Fund and the Federal Disability Insurance 
Trust Fund established under section 201 of the Social Security 
Act (42 U.S.C. 401) amounts equal to the reduction in revenues 
to the Treasury by reason of the amendments made by subsection 
(a). Amounts appropriated by the preceding sentence shall be trans-
ferred from the general fund at such times and in such manner 
as to replicate to the extent possible the transfers which would 
have occurred to such Trust Fund had such amendments not been 
enacted. 
(d) APPLICATION TO RAILROAD RETIREMENT TAXES.— 
(1) IN GENERAL.—Section 3221 of the Internal Revenue 
Code of 1986 is amended by redesignating subsection (c) as 
subsection (d) and by inserting after subsection (b) the following 
new subsection: 
‘‘(c) SPECIAL RATE FOR CERTAIN INDIVIDUALS HIRED IN 2010.— 
‘‘(1) IN GENERAL.—In the case of compensation paid by 
a qualified employer during the period beginning on the day 
after the date of the enactment of this subsection and ending 
on December 31, 2010, with respect to having a qualified indi-
vidual in the employer’s employ for services rendered to such 
qualified employer, the applicable percentage under subsection 
(a) shall be equal to the rate of tax in effect under section 
3111(b) for the calendar year. 
‘‘(2) QUALIFIED EMPLOYER.—The term ‘qualified employer’ 
means any employer other than the United States, any State, 
or any political subdivision thereof, or any instrumentality of 
the foregoing. 
‘‘(3) QUALIFIED
INDIVIDUAL.—For purposes of this sub-
section, the term ‘qualified individual’ means any individual 
who— 
‘‘(A) begins employment with a qualified employer after 
February 3, 2010, and before January 1, 2011, 
‘‘(B) certifies by signed affidavit, under penalties of 
perjury, that such individual has not been employed for 
more than 40 hours during the 60-day period ending on 
the date such individual begins such employment, 
‘‘(C) is not employed by the qualified employer to 
replace another employee of such employer unless such 
other employee separated from employment voluntarily or 
for cause, and 
‘‘(D) is not an individual described in section 51(i)(1) 
(applied by substituting ‘qualified employer’ for ‘taxpayer’ 
each place it appears). 
‘‘(4) ELECTION.—A qualified employer may elect to have 
this subsection not apply. Such election shall be made in such 
manner as the Secretary may require. 
Definition. 
Definition. 
Time period. 
26 USC 51. 
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124 STAT. 75 
PUBLIC LAW 111–147—MAR. 18, 2010 
‘‘(5) SPECIAL RULE FOR FIRST CALENDAR QUARTER OF 2010.— 
‘‘(A) NONAPPLICATION
OF
EXEMPTION
DURING
FIRST 
QUARTER.—Paragraph (1) shall not apply with respect to 
compensation paid during the first calendar quarter of 
2010. 
‘‘(B) CREDITING OF FIRST QUARTER EXEMPTION DURING 
SECOND QUARTER.—The amount by which the tax imposed 
under subsection (a) would (but for subparagraph (A)) have 
been reduced with respect to compensation paid by a quali-
fied employer during the first calendar quarter of 2010 
shall be treated as a payment against the tax imposed 
under subsection (a) with respect to the qualified employer 
for the second calendar quarter of 2010 which is made 
on the date that such tax is due.’’. 
(2) TRANSFERS TO SOCIAL SECURITY EQUIVALENT BENEFIT 
ACCOUNT.—There are hereby appropriated to the Social Security 
Equivalent Benefit Account established under section 15A(a) 
of the Railroad Retirement Act of 1974 (45 U.S.C. 231n–1(a)) 
amounts equal to the reduction in revenues to the Treasury 
by reason of the amendments made by paragraph (1). Amounts 
appropriated by the preceding sentence shall be transferred 
from the general fund at such times and in such manner 
as to replicate to the extent possible the transfers which would 
have occurred to such Account had such amendments not been 
enacted. 
(e) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendments made by this subsection shall apply to wages 
paid after the date of the enactment of this Act. 
(2) RAILROAD RETIREMENT TAXES.—The amendments made 
by subsection (d) shall apply to compensation paid after the 
date of the enactment of this Act. 
SEC. 102. BUSINESS CREDIT FOR RETENTION OF CERTAIN NEWLY 
HIRED INDIVIDUALS IN 2010. 
(a) IN GENERAL.—In the case of any taxable year ending after 
the date of the enactment of this Act, the current year business 
credit determined under section 38(b) of the Internal Revenue Code 
of 1986 for such taxable year shall be increased, with respect 
to each retained worker with respect to which subsection (b)(2) 
is first satisfied during such taxable year, by the lesser of— 
(1) $1,000, or 
(2) 6.2 percent of the wages (as defined in section 3401(a)) 
paid by the taxpayer to such retained worker during the 52 
consecutive week period referred to in subsection (b)(2). 
(b) RETAINED WORKER.—For purposes of this section, the term 
‘‘retained worker’’ means any qualified individual (as defined in 
section 3111(d)(3) or section 3221(c)(3) of the Internal Revenue 
Code of 1986)— 
(1) who was employed by the taxpayer on any date during 
the taxable year, 
(2) who was so employed by the taxpayer for a period 
of not less than 52 consecutive weeks, and 
(3) whose wages (as defined in section 3401(a)) for such 
employment during the last 26 weeks of such period equaled 
at least 80 percent of such wages for the first 26 weeks of 
such period. 
Definition. 
26 USC 38 note. 
Applicability. 
26 USC 51 note. 
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124 STAT. 76 
PUBLIC LAW 111–147—MAR. 18, 2010 
(c) LIMITATION
ON CARRYBACKS.—No portion of the unused 
business credit under section 38 of the Internal Revenue Code 
of 1986 for any taxable year which is attributable to the increase 
in the current year business credit under this section may be 
carried to a taxable year beginning before the date of the enactment 
of this section. 
(d) TREATMENT OF POSSESSIONS.— 
(1) PAYMENTS TO POSSESSIONS.— 
(A) MIRROR CODE POSSESSIONS.—The Secretary of the 
Treasury shall pay to each possession of the United States 
with a mirror code tax system amounts equal to the loss 
to that possession by reason of the application of this 
section (other than this subsection). Such amounts shall 
be determined by the Secretary of the Treasury based 
on information provided by the government of the respec-
tive possession. 
(B) 
OTHER
POSSESSIONS.—The 
Secretary 
of 
the 
Treasury shall pay to each possession of the United States 
which does not have a mirror code tax system amounts 
estimated by the Secretary of the Treasury as being equal 
to the aggregate benefits that would have been provided 
to residents of such possession by reason of the application 
of this section (other than this subsection) if a mirror 
code tax system had been in effect in such possession. 
The preceding sentence shall not apply with respect to 
any possession of the United States unless such possession 
has a plan, which has been approved by the Secretary 
of the Treasury, under which such possession will promptly 
distribute such payments to the residents of such posses-
sion. 
(2) COORDINATION WITH CREDIT ALLOWED AGAINST UNITED 
STATES INCOME TAXES.—No increase in the credit determined 
under section 38(b) of the Internal Revenue Code of 1986 
against United States income taxes for any taxable year deter-
mined under subsection (a) shall be taken into account with 
respect to any person— 
(A) to whom a credit is allowed against taxes imposed 
by the possession by reason of this section for such taxable 
year, or 
(B) who is eligible for a payment under a plan described 
in paragraph (1)(B) with respect to such taxable year. 
(3) DEFINITIONS AND SPECIAL RULES.— 
(A) POSSESSION OF THE UNITED STATES.—For purposes 
of this subsection, the term ‘‘possession of the United 
States’’ includes the Commonwealth of Puerto Rico and 
the Commonwealth of the Northern Mariana Islands. 
(B) MIRROR CODE TAX SYSTEM.—For purposes of this 
subsection, the term ‘‘mirror code tax system’’ means, with 
respect to any possession of the United States, the income 
tax system of such possession if the income tax liability 
of the residents of such possession under such system is 
determined by reference to the income tax laws of the 
United States as if such possession were the United States. 
(C) TREATMENT OF PAYMENTS.—For purposes of section 
1324(b)(2) of title 31, United States Code, rules similar 
to the rules of section 1001(b)(3)(C) of the American 
Recovery and Reinvestment Tax Act of 2009 shall apply. 
Applicability. 
Plans. 
Estimate. 
Determination. 
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124 STAT. 77 
PUBLIC LAW 111–147—MAR. 18, 2010 
TITLE II—EXPENSING 
SEC. 201. INCREASE IN EXPENSING OF CERTAIN DEPRECIABLE BUSI-
NESS ASSETS. 
(a) IN GENERAL.—Subsection (b) of section 179 is amended— 
(1) by striking ‘‘($125,000 in the case of taxable years 
beginning after 2006 and before 2011)’’ in paragraph (1) and 
inserting ‘‘($250,000 in the case of taxable years beginning 
after 2007 and before 2011)’’, 
(2) by striking ‘‘($500,000 in the case of taxable years 
beginning after 2006 and before 2011)’’ in paragraph (2) and 
inserting ‘‘($800,000 in the case of taxable years beginning 
after 2007 and before 2011)’’, 
(3) by striking paragraphs (5) and (7), and 
(4) by redesignating paragraph (6) as paragraph (5). 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2009. 
TITLE III—QUALIFIED TAX CREDIT 
BONDS 
SEC. 301. ISSUER ALLOWED REFUNDABLE CREDIT FOR CERTAIN 
QUALIFIED TAX CREDIT BONDS. 
(a) CREDIT ALLOWED.—Section 6431 is amended by adding at 
the end the following new subsection: 
‘‘(f) APPLICATION
OF SECTION
TO CERTAIN QUALIFIED TAX 
CREDIT BONDS.— 
‘‘(1) IN GENERAL.—In the case of any specified tax credit 
bond— 
‘‘(A) such bond shall be treated as a qualified bond 
for purposes of this section, 
‘‘(B) subsection (a) shall be applied without regard 
to the requirement that the qualified bond be issued before 
January 1, 2011, 
‘‘(C) the amount of the payment determined under 
subsection (b) with respect to any interest payment due 
under such bond shall be equal to the lesser of— 
‘‘(i) the amount of interest payable under such 
bond on such date, or 
‘‘(ii) the amount of interest which would have been 
payable under such bond on such date if such interest 
were determined at the applicable credit rate deter-
mined under section 54A(b)(3), 
‘‘(D) interest on any such bond shall be includible in 
gross income for purposes of this title, 
‘‘(E) no credit shall be allowed under section 54A with 
respect to such bond, 
‘‘(F) any payment made under subsection (b) shall not 
be includible as income for purposes of this title, and 
‘‘(G) the deduction otherwise allowed under this title 
to the issuer of such bond with respect to interest paid 
under such bond shall be reduced by the amount of the 
payment made under this section with respect to such 
interest. 
Applicability. 
26 USC 179 note. 
26 USC 179. 
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124 STAT. 78 
PUBLIC LAW 111–147—MAR. 18, 2010 
‘‘(2) SPECIAL
RULE
FOR
NEW
CLEAN
RENEWABLE
ENERGY 
BONDS AND QUALIFIED ENERGY CONSERVATION BONDS.—In the 
case of any specified tax credit bond described in clause (i) 
or (ii) of paragraph (3)(A), the amount determined under para-
graph (1)(C)(ii) shall be 70 percent of the amount so determined 
without regard to this paragraph and sections 54C(b) and 
54D(b). 
‘‘(3) SPECIFIED
TAX
CREDIT
BOND.—For purposes of this 
subsection, the term ‘specified tax credit bond’ means any quali-
fied tax credit bond (as defined in section 54A(d)) if— 
‘‘(A) such bond is— 
‘‘(i) a new clean renewable energy bond (as defined 
in section 54C), 
‘‘(ii) a qualified energy conservation bond (as 
defined in section 54D), 
‘‘(iii) a qualified zone academy bond (as defined 
in section 54E), or 
‘‘(iv) a qualified school construction bond (as 
defined in section 54F), and 
‘‘(B) the issuer of such bond makes an irrevocable 
election to have this subsection apply.’’. 
(b) TECHNICAL CORRECTIONS RELATING TO QUALIFIED SCHOOL 
CONSTRUCTION BONDS.— 
(1) The second sentence of section 54F(d)(1) is amended 
by striking ‘‘by the State’’ and inserting ‘‘by the State education 
agency (or such other agency as is authorized under State 
law to make such allocation)’’. 
(2) The second sentence of section 54F(e) is amended by 
striking ‘‘subsection (d)(4)’’ and inserting ‘‘paragraphs (2) and 
(4) of subsection (d)’’. 
(c) EFFECTIVE DATES.— 
(1) IN GENERAL.—The amendment made by subsection (a) 
shall apply to bonds issued after the date of the enactment 
of this Act. 
(2) TECHNICAL CORRECTIONS.—The amendments made by 
subsection (b) shall take effect as if included in section 1521 
of the American Recovery and Reinvestment Tax Act of 2009. 
TITLE 
IV—EXTENSION 
OF 
CURRENT 
SURFACE 
TRANSPORTATION 
PRO-
GRAMS 
SEC. 401. SHORT TITLE. 
This title may be cited as the ‘‘Surface Transportation Extension 
Act of 2010’’. 
Subtitle A—Federal-aid Highways 
SEC. 411. IN GENERAL. 
(a) IN GENERAL.—Except as provided in this Act, requirements, 
authorities, conditions, eligibilities, limitations, and other provisions 
authorized under titles I, V, and VI of the SAFETEA–LU (119 
Stat. 1144), the SAFETEA–LU Technical Corrections Act of 2008 
Incorporation by 
reference. 
Termination 
date. 
23 USC 101 note. 
Surface 
Transportation 
Extension Act of 
2010. 
26 USC 54F note. 
Applicability. 
26 USC 6431 
note. 
26 USC 54. 
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124 STAT. 79 
PUBLIC LAW 111–147—MAR. 18, 2010 
(122 Stat. 1572), titles I and VI of the Intermodal Surface Transpor-
tation Act of 1991 (105 Stat. 1914), titles I and V of the Transpor-
tation Equity Act for the 21st Century (112 Stat. 107), and title 
23, United States Code (excluding chapter 4 of that title), which 
would otherwise expire on or cease to apply after September 30, 
2009, or the date specified in section 106(3) of the Continuing 
Appropriations Resolution, 2010 (Public Law 111–68), are incor-
porated by reference and shall continue in effect until December 
31, 2010. 
(b) AUTHORIZATION OF APPROPRIATIONS.—Except as provided 
in section 412, there are authorized to be appropriated out of 
the Highway Trust Fund (other than the Mass Transit Account)— 
(1) for fiscal year 2010, a sum equal to the total amount 
authorized to be appropriated out of the Highway Trust Fund 
for programs, projects, and activities for fiscal year 2009 under 
titles I, V, and VI of the SAFETEA–LU (119 Stat. 1144), 
and title 23, United States Code (excluding chapter 4 of that 
title); and 
(2) for the period beginning on October 1, 2010, and ending 
on December 31, 2010, a sum equal to 1⁄4 of the total amount 
authorized to be appropriated out of the Highway Trust Fund 
for programs, projects, and activities for fiscal year 2009 under 
titles I, V, and VI of the SAFETEA–LU (119 Stat. 1144), 
and title 23, United States Code (excluding chapter 4 of that 
title). 
(c) USE OF FUNDS.— 
(1) FISCAL YEAR 2010.—Except as otherwise expressly pro-
vided in this Act, funds authorized to be appropriated under 
subsection (b)(1) for fiscal year 2010 shall be distributed, 
administered, limited, and made available for obligation in 
the same manner and at the same level as funds authorized 
to be appropriated out of the Highway Trust Fund for fiscal 
year 2009 to carry out programs, projects, activities, eligibilities, 
and requirements under the SAFETEA–LU (119 Stat. 1144), 
the SAFETEA–LU Technical Corrections Act of 2008 (122 Stat. 
1572), titles I and VI of the Intermodal Surface Transportation 
Act of 1991 (105 Stat. 1914), titles I and V of the Transportation 
Equity Act for the 21st Century (112 Stat. 107), and title 
23, United States Code (excluding chapter 4 of that title). 
(2) FISCAL YEAR 2011.—Except as otherwise expressly pro-
vided in this Act, funds authorized to be appropriated under 
subsection (b)(2) for the period beginning on October 1, 2010, 
and ending on December 31, 2010, shall be distributed, adminis-
tered, limited, and made available for obligation in the same 
manner and at the same level as 1⁄4 of the total amount of 
funds authorized to be appropriated out of the Highway Trust 
Fund for fiscal year 2009 to carry out programs, projects, activi-
ties, eligibilities, and requirements under the SAFETEA–LU 
(119 Stat. 1144), the SAFETEA–LU Technical Corrections Act 
of 2008 (122 Stat. 1572), titles I and VI of the Intermodal 
Surface Transportation Act of 1991 (105 Stat. 1914), titles 
I and V of the Transportation Equity Act for the 21st Century 
(112 Stat. 107), and title 23, United States Code (excluding 
chapter 4 of that title). 
(3) CALCULATION.—The amounts authorized to be appro-
priated under subsection (b) shall be calculated without regard 
to any rescission or cancellation of funds or contract authority 
Time period. 
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124 STAT. 80 
PUBLIC LAW 111–147—MAR. 18, 2010 
for fiscal year 2009 under the SAFETEA–LU (119 Stat. 1144) 
or any other law. 
(4) CONTRACT AUTHORITY.— 
(A) IN GENERAL.—Except as provided in subparagraph 
(B), funds authorized to be appropriated under this section 
shall be available for obligation and shall be administered 
in the same manner as if such funds were apportioned 
under chapter 1 of title 23, United States Code, and— 
(i) for fiscal year 2010, shall be subject to a limita-
tion on obligations for Federal-aid highways and high-
way safety construction programs included in an Act 
making appropriations for fiscal year 2010 or a portion 
of that fiscal year; and 
(ii) for the period beginning on October 1, 2010, 
and ending on December 31, 2010, shall be subject 
to a limitation on obligations included in an Act making 
appropriations for fiscal year 2011 or a portion of that 
fiscal year, except that during such period obligations 
subject to such limitation shall not exceed 1⁄4 of the 
limitation on obligations included in an Act making 
appropriations for fiscal year 2011. 
(B) EXCEPTIONS.—A limitation on obligations described 
in clause (i) or (ii) of subparagraph (A) shall not apply 
to any obligation under— 
(i) section 125 of title 23, United States Code; 
or 
(ii) section 105 of title 23, United States Code— 
(I) for fiscal year 2010, only in an amount 
equal to $639,000,000; and 
(II) for the period beginning on October 1, 
2010, and ending on December 31, 2010, only in 
an amount equal to $159,750,000. 
(5) CALCULATIONS FOR DISTRIBUTION OF OBLIGATION LIMITA-
TION.—Upon enactment of an Act making appropriations for 
the Department of Transportation for fiscal year 2011 (other 
than an Act or resolution making continuing appropriations), 
the Secretary shall— 
(A) as necessary for purposes of making the calcula-
tions for the distribution of any obligation limitation under 
such Act, annualize the amount of contract authority pro-
vided under this Act for Federal-aid highways and highway 
safety construction programs; and 
(B) multiply the resulting distribution of any obligation 
limitation under such Act by 1⁄4. 
(d) EXTENSION AND FLEXIBILITY FOR CERTAIN ALLOCATED PRO-
GRAMS.— 
(1) FISCAL YEAR 2010.—Notwithstanding any other provision 
of law, for fiscal year 2010, the portion of the share of funds 
of a State under subsection (b)(1) determined by the amount 
that the State received or was authorized to receive for fiscal 
year 2009 to carry out sections 1301, 1302, 1307, 1702, and 
1934 of the SAFETEA–LU (119 Stat. 1198, 1204, 1217, 1256, 
and 1485), and section 144(f)(1) of title 23, United States Code, 
shall be— 
(A) made available to the State for programs appor-
tioned under sections 104(b) and 144 of title 23, United 
Time period. 
Time period. 
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124 STAT. 81 
PUBLIC LAW 111–147—MAR. 18, 2010 
States Code, and in the same proportion for each such 
program that— 
(i) the amount apportioned to the State for that 
program for fiscal year 2009; bears to 
(ii) the amount apportioned to the State for fiscal 
year 2009 for all programs apportioned under such 
sections of such Code; and 
(B) administered in the same manner and with the 
same period of availability as such funding is administered 
under programs identified in subparagraph (A), except that 
no funds may be used to carry out the project described 
in section 1307(d)(1) of the SAFETEA–LU (119 Stat. 1217; 
122 Stat. 1577). 
(2) FISCAL YEAR 2011.—Notwithstanding any other provision 
of law, for the period beginning on October 1, 2010, and ending 
on December 31, 2010, the portion of the share of funds of 
a State under subsection (b)(2) determined by 1⁄4 of the amount 
that the State received or was authorized to receive for fiscal 
year 2009 to carry out sections 1301, 1302, 1307, 1702, and 
1934 of the SAFETEA–LU (119 Stat. 1198, 1204, 1217, 1256, 
and 1485) and section 144(f)(1) of title 23, United States Code, 
shall be— 
(A) made available to the State for programs appor-
tioned under sections 104(b) and 144 of title 23, United 
States Code, and in the same proportion for each such 
program that— 
(i) the amount apportioned to the State for that 
program for fiscal year 2009; bears to 
(ii) the amount apportioned to the State for fiscal 
year 2009 for all programs apportioned under such 
sections of such Code; and 
(B) administered in the same manner and with the 
same period of availability as such funding is administered 
under programs identified in subparagraph (A), except that 
no funds may be used to carry out the project described 
in section 1307(d)(1) of the SAFETEA–LU (119 Stat. 1217; 
122 Stat. 1577). 
(3) TERRITORIES AND PUERTO RICO.— 
(A) FISCAL
YEAR
2010.—Notwithstanding any other 
provision of law, for fiscal year 2010, the portion of the 
share of funds of a territory or Puerto Rico under paragraph 
(b)(1) determined by the amount that the territory or 
Puerto Rico received or was authorized to receive for fiscal 
year 2009 to carry out section 1934 of SAFETEA–LU (119 
Stat. 1485), shall be— 
(i) for a territory, made available and administered 
in the same manner as funding is made available 
and administered under section 215 of title 23, United 
States Code; and 
(ii) for Puerto Rico, made available and adminis-
tered in the same manner as funding is made available 
and administered under section 165 of title 23, United 
States Code. 
(B) FISCAL
YEAR
2011.—Notwithstanding any other 
provision of law, for the period beginning on October 1, 
2010, and ending on December 31, 2010, the portion of 
the share of funds of a territory or Puerto Rico under 
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124 STAT. 82 
PUBLIC LAW 111–147—MAR. 18, 2010 
paragraph (b)(2) determined by 1⁄4 of the amount that 
the territory or Puerto Rico received or was authorized 
to receive for fiscal year 2009 to carry out section 1934 
of SAFETEA–LU (119 Stat. 1485), shall be— 
(i) for a territory, made available and administered 
in the same manner as funding is made available 
and administered under section 215 of title 23, United 
States Code; and 
(ii) for Puerto Rico, made available and adminis-
tered in the same manner as funding is made available 
and administered under section 165 of title 23, United 
States Code. 
(C) TERRITORY DEFINED.—In this paragraph, the term 
‘‘territory’’ means any of the following territories of the 
United States: American Samoa, the Commonwealth of 
the Northern Mariana Islands, Guam, or the United States 
Virgin Islands. 
(4) ADDITIONAL FUNDS.— 
(A) IN GENERAL.—No additional funds shall be provided 
for any project or activity under subsection (c), or paragraph 
(1) or (2) of this subsection, that the Secretary of Transpor-
tation determines was sufficiently funded before or during 
fiscal year 2009 to achieve the authorized purpose of the 
project or activity. 
(B) RESERVATION
AND
REDISTRIBUTION
OF
FUNDS.— 
Funds made available in accordance with paragraph (1) 
or (2) of subsection (c) or paragraph (1) or (2) of this 
subsection for a project or activity described in subpara-
graph (A) shall be— 
(i) reserved by the Secretary of Transportation; 
and 
(ii) distributed to each State in accordance with 
paragraph (1) or (2) of subsection (c), or paragraph 
(1) or (2) of this subsection, as appropriate, for use 
in carrying out other highway projects and activities 
extended by subsection (c) or this subsection, in the 
proportion that— 
(I) the total amount of funds made available 
for fiscal year 2009 for projects and activities 
described in subparagraph (A) in the State; bears 
to 
(II) the total amount of funds made available 
for fiscal year 2009 for those projects and activities 
in all States. 
(e) EXTENSION
OF
AUTHORIZATIONS
UNDER
TITLE
V 
OF 
SAFETEA–LU.— 
(1) IN
GENERAL.—The programs authorized under para-
graphs (1) through (5) of section 5101(a) of the SAFETEA– 
LU (119 Stat. 1779) shall be continued— 
(A) for fiscal year 2010, at the funding levels authorized 
for those programs for fiscal year 2009; and 
(B) for the period beginning on October 1, 2010, and 
ending on December 31, 2010, at 1⁄4 the funding levels 
authorized for those programs for fiscal year 2009. 
(2) DISTRIBUTION OF FUNDS.—Funds for programs contin-
ued under paragraph (1) shall be distributed to major program 
areas under those programs in the same proportions as funds 
Time period. 
Determination. 
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124 STAT. 83 
PUBLIC LAW 111–147—MAR. 18, 2010 
were allocated for those program areas for fiscal year 2009, 
except that designations for specific activities shall not be 
required to be continued for— 
(A) fiscal year 2010; or 
(B) the period beginning on October 1, 2010, and ending 
on December 31, 2010. 
(3) ADDITIONAL FUNDS.— 
(A) IN GENERAL.—No additional funds shall be provided 
for any project or activity under this subsection that the 
Secretary of Transportation determines was sufficiently 
funded before or during fiscal year 2009 to achieve the 
authorized purpose of the project or activity. 
(B) DISTRIBUTION.—Funds that would have been made 
available under paragraph (1) for a project or activity but 
for the prohibition under subparagraph (A) shall be distrib-
uted in accordance with paragraph (2). 
SEC. 412. ADMINISTRATIVE EXPENSES. 
(a) 
AUTHORIZATION
OF
CONTRACT
AUTHORITY.—Notwith-
standing any other provision of this Act or any other law, there 
are authorized to be appropriated from the Highway Trust Fund 
(other than the Mass Transit Account), from amounts provided 
under section 411, for administrative expenses of the Federal-aid 
highway program— 
(1) $422,425,000 for fiscal year 2010; and 
(2) $105,606,250 for the period beginning on October 1, 
2010, and ending on December 31, 2010. 
(b) CONTRACT AUTHORITY.—Funds authorized to be appro-
priated by this section shall be— 
(1) available for obligation, and shall be administered, in 
the same manner as if such funds were apportioned under 
chapter 1 of title 23, United States Code; and 
(2) subject to a limitation on obligations for Federal-aid 
highways and highway safety construction programs, except 
that such funds shall remain available until expended. 
SEC. 413. RESCISSION OF UNOBLIGATED BALANCES. 
(a) IN GENERAL.—The Secretary of Transportation shall restore 
funds rescinded pursuant to section 10212 of the SAFETEA–LU 
(Public Law 109–59; 119 Stat. 1937) to the States and to the 
programs from which the funds were rescinded. 
(b) ADMINISTRATION OF FUNDS.—The restored amounts shall 
be administered in the same manner as the funds originally 
rescinded, except those funds may only be used with an obligation 
limitation provided in an Act making appropriations for Federal- 
aid highways and highway safety construction programs enacted 
after implementation of the rescission under section 10212 of the 
SAFETEA–LU (Public Law 109–59; 119 Stat. 1937). 
(c) FUNDING.— 
(1) IN GENERAL.—There is authorized to be appropriated 
from the Highway Trust Fund (other than the Mass Transit 
Account) for fiscal year 2010 to carry out this section an amount 
equal to the amount of funds rescinded under section 10212 
of the SAFETEA–LU (Public Law 109–59; 119 Stat. 1937). 
(2) AVAILABILITY
FOR
OBLIGATION.—Funds authorized to 
be appropriated by this section shall be— 
(A) made available under this section and available 
for obligation in the same manner as if the funds were 
Time period. 
Determination. 
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124 STAT. 84 
PUBLIC LAW 111–147—MAR. 18, 2010 
apportioned under chapter 1 of title 23, United States 
Code, except that the funds shall retain the characteristics 
of the funds originally rescinded; and 
(B) subject to a limitation on obligations for Federal- 
aid highways and highway safety construction programs 
included in an Act making appropriations for fiscal year 
2010 or a portion of the fiscal year. 
(d) LIMITATION.—No funds authorized to be restored under 
this section shall be restored after the end of fiscal year 2010. 
SEC. 414. RECONCILIATION OF FUNDS. 
The Secretary shall reduce the amount apportioned or allocated 
for a program, project, or activity under this title by amounts 
apportioned or allocated pursuant to the Continuing Appropriations 
Resolution, 2010 (Public Law 111–68). 
Subtitle B—National Highway Traffic Safe-
ty Administration, Federal Motor Carrier 
Safety Administration, and Additional 
Programs 
SEC. 421. EXTENSION OF NATIONAL HIGHWAY TRAFFIC SAFETY 
ADMINISTRATION HIGHWAY SAFETY PROGRAMS. 
(a) CHAPTER 4 HIGHWAY SAFETY PROGRAMS.—Section 2001(a)(1) 
of the SAFETEA–LU (119 Stat. 1519) is amended— 
(1) by striking ‘‘and’’; and 
(2) by striking ‘‘2009.’’ and inserting ‘‘2009, $235,000,000 
for fiscal year 2010, and $58,750,000 for the period beginning 
on October 1, 2010, and ending on December 31, 2010.’’. 
(b) HIGHWAY SAFETY RESEARCH AND DEVELOPMENT.—Section 
2001(a)(2) of the SAFETEA–LU (119 Stat. 1519) is amended— 
(1) by striking ‘‘and’’; and 
(2) by striking ‘‘2009.’’ and inserting ‘‘2009, $107,329,000 
for fiscal year 2010, and $27,061,000 for the period beginning 
on October 1, 2010, and ending on December 31, 2010.’’. 
(c) OCCUPANT PROTECTION INCENTIVE GRANTS.— 
(1) EXTENSION OF PROGRAM.—Section 405(a) of title 23, 
United States Code, is amended— 
(A) in paragraph (3), by striking ‘‘6’’ and inserting 
‘‘8’’; and 
(B) in paragraph (4)(C), by striking ‘‘fifth and sixth’’ 
and inserting ‘‘fifth through eighth’’. 
(2) AUTHORIZATION OF APPROPRIATIONS.—Section 2001(a)(3) 
of the SAFETEA–LU (119 Stat. 1519) is amended— 
(A) by striking ‘‘and’’; and 
(B) by striking ‘‘2009.’’ and inserting ‘‘2009, $25,000,000 
for fiscal year 2010, and $6,250,000 for the period beginning 
on October 1, 2010, and ending on December 31, 2010.’’. 
(d) SAFETY BELT PERFORMANCE GRANTS.—Section 2001(a)(4) 
of the SAFETEA–LU (119 Stat. 1519) is amended— 
(1) by striking ‘‘and’’; and 
(2) by striking ‘‘2009.’’ and inserting ‘‘2009, $124,500,000 
for fiscal year 2010, and $31,125,000 for the period beginning 
on October 1, 2010, and ending on December 31, 2010.’’. 
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124 STAT. 85 
PUBLIC LAW 111–147—MAR. 18, 2010 
(e) STATE TRAFFIC SAFETY INFORMATION SYSTEM IMPROVE-
MENTS.—Section 2001(a)(5) of the SAFETEA–LU (119 Stat. 1519) 
is amended— 
(1) by striking ‘‘and’’; and 
(2) by striking ‘‘2009.’’ and inserting ‘‘2009, $34,500,000 
for fiscal year 2010, and $8,625,000 for the period beginning 
on October 1, 2010, and ending on December 31, 2010.’’. 
(f) ALCOHOL-IMPAIRED DRIVING COUNTERMEASURES INCENTIVE 
GRANT PROGRAM.— 
(1) EXTENSION OF PROGRAM.—Section 410 of title 23, United 
States Code, is amended— 
(A) in subsection (a)(3)(C), by striking ‘‘fifth, sixth, 
seventh, and eighth’’ and inserting ‘‘fifth through tenth’’; 
and 
(B) in subsection (b)(2)(C), by striking ‘‘2008 and 2009’’ 
and inserting ‘‘2008, 2009, 2010, and 2011’’. 
(2) AUTHORIZATION OF APPROPRIATIONS.—Section 2001(a)(6) 
of the SAFETEA–LU (119 Stat. 1519) is amended— 
(A) by striking ‘‘and’’; and 
(B) 
by 
striking 
‘‘2009.’’ 
and 
inserting 
‘‘2009, 
$139,000,000 for fiscal year 2010, and $34,750,000 for the 
period beginning on October 1, 2010, and ending on 
December 31, 2010.’’. 
(g) NATIONAL DRIVER REGISTER.—Section 2001(a)(7) of the 
SAFETEA–LU (119 Stat. 1520) is amended— 
(1) by striking ‘‘and’’; and 
(2) by striking ‘‘2009.’’ and inserting ‘‘2009, $4,078,000 for 
fiscal year 2010, and $1,029,000 for the period beginning on 
October 1, 2010, and ending on December 31, 2010.’’. 
(h) HIGH VISIBILITY ENFORCEMENT PROGRAM.— 
(1) EXTENSION
OF
PROGRAM.—Section 2009(a) of the 
SAFETEA–LU (23 U.S.C. 402 note) is amended by striking 
‘‘2009’’ and inserting ‘‘2011’’. 
(2) AUTHORIZATION OF APPROPRIATIONS.—Section 2001(a)(8) 
of the SAFETEA–LU (119 Stat. 1520) is amended— 
(A) by striking ‘‘and’’; and 
(B) by striking ‘‘2009.’’ and inserting ‘‘2009, $29,000,000 
for fiscal year 2010, and $7,250,000 for the period beginning 
on October 1, 2010, and ending on December 31, 2010.’’. 
(i) MOTORCYCLIST SAFETY.— 
(1) EXTENSION OF PROGRAM.—Section 2010(d)(1)(B) of the 
SAFETEA–LU (23 U.S.C. 402 note) is amended by striking 
‘‘and fourth’’ and inserting ‘‘fourth, fifth, and sixth’’. 
(2) AUTHORIZATION OF APPROPRIATIONS.—Section 2001(a)(9) 
of the SAFETEA–LU (119 Stat. 1520) is amended— 
(A) by striking ‘‘and’’; and 
(B) by striking ‘‘2009.’’ and inserting ‘‘2009, $7,000,000 
for fiscal year 2010, and $1,750,000 for the period beginning 
on October 1, 2010, and ending on December 31, 2010.’’. 
(j) CHILD SAFETY AND CHILD BOOSTER SEAT SAFETY INCENTIVE 
GRANTS.— 
(1) EXTENSION
OF
PROGRAM.—Section 2011(c)(2) of the 
SAFETEA–LU (23 U.S.C. 405 note) is amended by striking 
‘‘fourth fiscal year’’ and inserting ‘‘fourth, fifth, and sixth fiscal 
years’’. 
(2) 
AUTHORIZATION
OF
APPROPRIATIONS.—Section 
2001(a)(10) of the SAFETEA–LU (119 Stat. 1520) is amended— 
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124 STAT. 86 
PUBLIC LAW 111–147—MAR. 18, 2010 
(A) by striking ‘‘and’’; and 
(B) by striking ‘‘2009.’’ and inserting ‘‘2009, $7,000,000 
for fiscal year 2010, and $1,750,000 for the period beginning 
on October 1, 2010, and ending on December 31, 2010.’’. 
(k) ADMINISTRATIVE
EXPENSES.—Section 2001(a)(11) of the 
SAFETEA–LU (119 Stat. 1520) is amended— 
(1) by striking ‘‘and’’ the last place it appears; and 
(2) by striking ‘‘2009.’’ and inserting ‘‘2009, $25,047,000 
for fiscal year 2010, and $6,332,000 for the period beginning 
on October 1, 2010, and ending on December 31, 2010.’’. 
(l) APPLICABILITY
OF
TITLE
23.—Section 2001(c) of the 
SAFETEA–LU (119 Stat. 1520) is amended by striking ‘‘2009’’ and 
inserting ‘‘2011’’. 
(m) DRUG-IMPAIRED DRIVING ENFORCEMENT.—Section 2013(f) 
of the SAFETEA–LU (23 U.S.C. 403 note) is amended by striking 
‘‘2009’’ and inserting ‘‘2011’’. 
(n) OLDER DRIVER SAFETY; LAW ENFORCEMENT TRAINING.— 
Section 2017 of the SAFETEA–LU is amended— 
(1) in subsection (a)(1) (119 Stat. 1541), by striking ‘‘2009’’ 
and inserting ‘‘2011’’; and 
(2) in subsection (b)(2) (23 U.S.C. 402 note), by striking 
‘‘2009’’ and inserting ‘‘2011’’. 
SEC. 422. EXTENSION OF FEDERAL MOTOR CARRIER SAFETY ADMINIS-
TRATION PROGRAMS. 
(a) MOTOR CARRIER SAFETY GRANTS.—Section 31104(a) of title 
49, United States Code, is amended— 
(1) in paragraph (4), by striking ‘‘and’’ at the end; 
(2) in paragraph (5), by striking the period at the end 
and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(6) $209,000,000 for fiscal year 2010; and 
‘‘(7) $52,679,000 for the period beginning on October 1, 
2010, and ending on December 31, 2010.’’. 
(b) ADMINISTRATIVE EXPENSES.—Section 31104(i)(1) of title 49, 
United States Code, is amended— 
(1) in subparagraph (D), by striking ‘‘and’’; 
(2) in subparagraph (E), by striking the period at the 
end and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(F) ‘‘(F) $239,828,000 for fiscal year 2010; and 
‘‘(G) ‘‘(G) $61,036,000 for the period beginning on 
October 1, 2010, and ending on December 31, 2010.’’. 
(c) GRANT PROGRAMS.—Section 4101(c) of the SAFETEA–LU 
(119 Stat. 1715) is amended— 
(1) in paragraph (1), by striking ‘‘2009.’’ and inserting 
‘‘2009, and $25,000,000 for fiscal year 2010, and $6,301,000 
for the period beginning on October 1, 2010, and ending on 
December 31, 2010.’’; 
(2) in paragraph (2), by striking ‘‘2009.’’ and inserting 
‘‘2009, $32,000,000 for fiscal year 2010, and $8,066,000 for 
the period beginning on October 1, 2010, and ending on 
December 31, 2010.’’; 
(3) in paragraph (3), by striking ‘‘2009.’’ and inserting 
‘‘2009, $5,000,000 for fiscal year 2010, and $1,260,000 for the 
period beginning on October 1, 2010, and ending on December 
31, 2010.’’; 
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124 STAT. 87 
PUBLIC LAW 111–147—MAR. 18, 2010 
(4) in paragraph (4), by striking ‘‘2009.’’ and inserting 
‘‘2009, $25,000,000 for fiscal year 2010, and $6,301,000 for 
the period beginning on October 1, 2010, and ending on 
December 31, 2010.’’; and 
(5) in paragraph (5), by striking ‘‘2009.’’ and inserting 
‘‘2009, $3,000,000 for fiscal year 2010, and $756,000 for the 
period beginning on October 1, 2010, and ending on December 
31, 2010.’’. 
(d) HIGH-PRIORITY ACTIVITIES.—Section 31104(k) of title 49, 
United States Code, is amended by striking ‘‘2009’’ in paragraph 
(2) and inserting ‘‘2009, $15,000,000 for fiscal year 2010, and 
$3,781,000 for the period beginning on October 1, 2010, and ending 
on December 31, 2010’’. 
(e) NEW ENTRANT AUDITS.—Section 31144(g)(5)(B) of title 49, 
United States Code, is amended by inserting ‘‘(and up to $7,310,000 
for the period beginning on October 1, 2010, and ending on 
December 31, 2010)’’ after ‘‘fiscal year’’. 
(f) COMMERCIAL DRIVER’S LICENSE INFORMATION SYSTEM MOD-
ERNIZATION.—Section 4123(d) of the SAFETEA–LU (119 Stat. 1736) 
is amended— 
(1) in paragraph (3), by striking ‘‘and’’ at the end; 
(2) in paragraph (4), by striking the period at the end 
and inserting a semicolon; and 
(3) by adding at the end the following: 
‘‘(5) $8,000,000 for fiscal year 2010; and 
‘‘(6) $2,016,000 for the period beginning on October 1, 2010, 
and ending on December 31, 2010.’’. 
(g) OUTREACH
AND
EDUCATION.—Section 4127(e) of the 
SAFETEA–LU (119 Stat. 1741) is amended by striking ‘‘and 2009’’ 
and inserting ‘‘2009, and 2010, and $252,000 to the Federal Motor 
Carrier Safety Administration, and $756,000 to the National High-
way Traffic Safety Administration, for the period beginning on 
October 1, 2010, and ending on December 31, 2010,’’. 
(h) GRANT PROGRAM FOR COMMERCIAL MOTOR VEHICLE OPERA-
TORS.—Section 4134(c) of the SAFETEA–LU (119 Stat. 1744) is 
amended by striking ‘‘2009’’ and inserting ‘‘2009, 2010, and $252,000 
for the period beginning on October 1, 2010, and ending on 
December 31, 2010,’’. 
(i) MOTOR CARRIER SAFETY ADVISORY COMMITTEE.—Section 
4144(d) of the SAFETEA–LU (1119 Stat. 1748) is amended by 
striking ‘‘September 30, 2010’’ and inserting ‘‘December 31, 2010’’. 
(j) WORKING GROUP
FOR DEVELOPMENT
OF PRACTICES
AND 
PROCEDURES TO ENHANCE FEDERAL-STATE RELATIONS.—Section 
4213(d) of the SAFETEA–LU (49 U.S.C. 14710 note) is amended 
by striking ‘‘September 30, 2009’’ and inserting ‘‘December 31, 
2010’’. 
SEC. 423. ADDITIONAL PROGRAMS. 
(a) HAZARDOUS
MATERIALS
RESEARCH
PROJECTS.—Section 
7131(c) of the SAFETEA–LU (119 Stat. 1910) is amended by 
striking ‘‘through 2009’’ and inserting ‘‘through 2010, and $315,000 
for the period beginning on October 1, 2010, and ending on 
December 31, 2010,’’. 
(b) DINGELL-JOHNSON SPORT FISH RESTORATION ACT.—Section 
4 of the Dingell-Johnson Sport Fish Restoration Act (16 U.S.C. 
777c) is amended— 
49 USC 31100 
note. 
49 USC 31301 
note. 
49 USC 31100 
note. 
49 USC 31309 
note. 
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124 STAT. 88 
PUBLIC LAW 111–147—MAR. 18, 2010 
(1) in subsection (a), in the matter preceding paragraph 
(1), by striking ‘‘2009,’’ and inserting ‘‘2010 and for the period 
beginning on October 1, 2010, and ending on December 31, 
2010,’’; and 
(2) in subsection (b)(1)(A), by striking ‘‘2010,’’ and inserting 
‘‘and for the period beginning on October 1, 2010, and ending 
on December 31, 2010,’’. 
Subtitle C—Public Transportation 
Programs 
SEC. 431. ALLOCATION OF FUNDS FOR PLANNING PROGRAMS. 
Section 5305(g) of title 49, United States Code, is amended 
by striking ‘‘2009’’ and inserting ‘‘2010, and for the period beginning 
October 1, 2010, and ending December 31, 2010,’’. 
SEC. 432. SPECIAL RULE FOR URBANIZED AREA FORMULA GRANTS. 
Section 5307(b)(2) of title 49, United States Code, is amended— 
(1) in the paragraph heading, by striking ‘‘2009’’ and 
inserting ‘‘2010, AND THE PERIOD BEGINNING OCTOBER 1, 2010, 
AND ENDING DECEMBER 31, 2010’’; 
(2) in subparagraph (A), by striking ‘‘2009,’’ and inserting 
‘‘2010, and the period beginning October 1, 2010, and ending 
December 31, 2010,’’; and 
(3) in subparagraph (E)— 
(A) in the subparagraph heading, by striking ‘‘AND 
2009’’ and inserting ‘‘THROUGH 2010 AND DURING THE PERIOD 
BEGINNING
OCTOBER
1, 2010, AND
ENDING
DECEMBER
31, 
2010’’; and 
(B) in the matter preceding clause (i), by striking ‘‘and 
2009’’ and inserting ‘‘through 2010, and during the period 
beginning October 1, 2010, and ending December 31, 
2010,’’. 
SEC. 433. ALLOCATING AMOUNTS FOR CAPITAL INVESTMENT GRANTS. 
Section 5309(m) of title 49, United States Code, is amended— 
(1) in paragraph (2)— 
(A) in the heading, by striking ‘‘2009’’ and inserting 
‘‘2010 AND OCTOBER 1, 2010, THROUGH DECEMBER 31, 2010’’; 
(B) in the matter preceding subparagraph (A), by 
striking ‘‘2009’’ and inserting ‘‘2010, and during the period 
beginning October 1, 2010, and ending December 31, 
2010,’’; and 
(C) in subparagraph (A)(i), by striking ‘‘2009’’ and 
inserting ‘‘2010, and $50,000,000 for the period beginning 
October 1, 2010, and ending December 31, 2010,’’; 
(2) in paragraph (6)— 
(A) in subparagraph (B), by striking ‘‘2009’’ and 
inserting ‘‘2010, and $3,750,000 shall be available for the 
period beginning October 1, 2010, and ending December 
31, 2010,’’; and 
(B) in subparagraph (C), by striking ‘‘2009’’ and 
inserting ‘‘2010, and $1,250,000 shall be available for the 
period beginning October 1, 2010 and ending December 
31, 2010,’’; and 
(3) in paragraph (7)— 
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124 STAT. 89 
PUBLIC LAW 111–147—MAR. 18, 2010 
(A) in subparagraph (A)— 
(i) by redesignating clauses (i) through (viii) as 
subclauses (I) through (VIII), respectively; 
(ii) in the matter preceding subclause (I), as so 
redesignated, by striking ‘‘$10,000,000’’ and all that 
follows through ‘‘2009’’ and inserting the following: 
‘‘(i) FISCAL YEARS 2006 THROUGH 2010.—$10,000,000 
shall be available in each of fiscal years 2006 through 
2010’’; and 
(iii) by inserting after subclause (VIII), as so 
redesignated, the following: 
‘‘(ii) SPECIAL RULE FOR OCTOBER 1, 2010, THROUGH 
DECEMBER 31, 2010.—$2,500,000 shall be available in 
the period beginning October 1, 2010, and ending 
December 31, 2010, for ferry boats or ferry terminal 
facilities. The Secretary shall set aside a portion of 
such amount in accordance with clause (i), except that 
the Secretary shall set aside 25 percent of each dollar 
amount specified in subclauses (I) through (VIII).’’;’’. 
(B) in subparagraph (B), by inserting after ‘‘2009.’’ 
the following: 
‘‘(v) $13,500,000 for fiscal year 2010. 
‘‘(vi) $3,375,000 for the period beginning October 
1, 2010, and ending December 31, 2010.’’; 
(C) in subparagraph (C), by inserting ‘‘, and during 
the period beginning October 1, 2010, and ending December 
31, 2010,’’ after ‘‘fiscal year’’; 
(D) in subparagraph (D), by inserting ‘‘, and not less 
than $8,750,000 shall be available for the period beginning 
October 1, 2010, and ending December 31, 2010,’’ after 
‘‘year’’; and 
(E) in subparagraph (E), by inserting ‘‘, and $750,000 
shall be available for the period beginning October 1, 2010, 
and ending December 31, 2010,’’ after ‘‘year’’. 
SEC. 434. APPORTIONMENT OF FORMULA GRANTS FOR OTHER THAN 
URBANIZED AREAS. 
Section 5311(c)(1) of title 49, United States Code, is amended 
by adding at the end the following: 
‘‘(E) $15,000,000 for fiscal year 2010. 
‘‘(F) $3,750,000 for the period beginning October 1, 
2010, and ending December 31, 2010.’’. 
SEC. 435. APPORTIONMENT BASED ON FIXED GUIDEWAY FACTORS. 
Section 5337 of title 49, United States Code, is amended— 
(1) in subsection (a), in the matter preceding paragraph 
(1), by striking ‘‘2009’’ and inserting ‘‘2010’’; and 
(2) by adding at the end the following: 
‘‘(g) SPECIAL RULE FOR OCTOBER 1, 2010, THROUGH DECEMBER 
31, 2010.—The Secretary shall apportion amounts made available 
for fixed guideway modernization under section 5309 for the period 
beginning October 1, 2010, and ending December 31, 2010, in 
accordance with subsection (a), except that the Secretary shall 
apportion 25 percent of each dollar amount specified in subsection 
(a).’’. 
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124 STAT. 90 
PUBLIC LAW 111–147—MAR. 18, 2010 
SEC. 436. AUTHORIZATIONS FOR PUBLIC TRANSPORTATION. 
(a) FORMULA AND BUS GRANTS.—Section 5338(b) of title 49, 
United States Code, is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (C), by striking ‘‘and’’ at the end; 
(B) in subparagraph (D), by striking the period at 
the end and inserting a semicolon; and 
(C) by adding at the end the following: 
‘‘(E) $8,360,565,000 for fiscal year 2010; and 
‘‘(F) $2,090,141,250 for the period beginning October 
1, 2010, and ending December 31, 2010.’’; and 
(2) in paragraph (2)— 
(A) in subparagraph (A), by striking ‘‘and $113,500,000 
for fiscal year 2009’’ and inserting ‘‘$113,500,000 for each 
of fiscal years 2009 and 2010, and $28,375,000 for the 
period beginning October 1, 2010, and ending December 
31, 2010,’’; 
(B) 
in 
subparagraph 
(B), 
by 
striking 
‘‘and 
$4,160,365,000 
for 
fiscal 
year 
2009’’ 
and 
inserting 
‘‘$4,160,365,000 for each of fiscal years 2009 and 2010, 
and $1,040,091,250 for the period beginning October 1, 
2010, and ending December 31, 2010,’’; 
(C) in subparagraph (C), by striking ‘‘and $51,500,000 
for fiscal year 2009’’ and inserting ‘‘$51,500,000 for each 
of fiscal years 2009 and 2010, and $12,875,000 for the 
period beginning October 1, 2010, and ending December 
31, 2010,’’; 
(D) 
in 
subparagraph 
(D), 
by 
striking 
‘‘and 
$1,666,500,000 
for 
fiscal 
year 
2009’’ 
and 
inserting 
‘‘$1,666,500,000 for each of fiscal years 2009 and 2010, 
and $416,625,000 for the period beginning October 1, 2010 
and ending December 31, 2010,’’; 
(E) in subparagraph (E), by striking ‘‘and $984,000,000 
for fiscal year 2009’’ and inserting ‘‘$984,000,000 for each 
of fiscal years 2009 and 2010, and $246,000,000 for the 
period beginning October 1, 2010 and ending December 
31, 2010,’’; 
(F) in subparagraph (F), by striking ‘‘and $133,500,000 
for fiscal year 2009’’ and inserting ‘‘$133,500,000 for each 
of fiscal years 2009 and 2010, and $33,375,000 for the 
period beginning October 1, 2010 and ending December 
31, 2010,’’; 
(G) in subparagraph (G), by striking ‘‘and $465,000,000 
for fiscal year 2009’’ and inserting ‘‘$465,000,000 for each 
of fiscal years 2009 and 2010, and $116,250,000 for the 
period beginning October 1, 2010 and ending December 
31, 2010,’’; 
(H) in subparagraph (H), by striking ‘‘and $164,500,000 
for fiscal year 2009’’ and inserting ‘‘$164,500,000 for each 
of fiscal years 2009 and 2010, and $41,125,000 for the 
period beginning October 1, 2010 and ending December 
31, 2010,’’; 
(I) in subparagraph (I), by striking ‘‘and $92,500,000 
for fiscal year 2009’’ and inserting ‘‘$92,500,000 for each 
of fiscal years 2009 and 2010, and $23,125,000 for the 
period beginning October 1, 2010 and ending December 
31, 2010,’’; 
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124 STAT. 91 
PUBLIC LAW 111–147—MAR. 18, 2010 
(J) in subparagraph (J), by striking ‘‘and $26,900,000 
for fiscal year 2009’’ and inserting ‘‘$26,900,000 for each 
of fiscal years 2009 and 2010, and $6,725,000 for the period 
beginning October 1, 2010 and ending December 31, 2010,’’; 
(K) in subparagraph (K), by striking ‘‘and $3,500,000 
for fiscal year 2009’’ and inserting ‘‘$3,500,000 for each 
of fiscal years 2009 and 2010, and $875,000 for the period 
beginning October 1, 2010 and ending December 31, 2010,’’; 
(L) in subparagraph (L), by striking ‘‘and $25,000,000 
for fiscal year 2009’’ and inserting ‘‘$25,000,000 for each 
of fiscal years 2009 and 2010, and $6,250,000 for the period 
beginning October 1, 2010 and ending December 31, 2010,’’; 
(M) 
in 
subparagraph 
(M), 
by 
striking 
‘‘and 
$465,000,000 
for 
fiscal 
year 
2009’’ 
and 
inserting 
‘‘$465,000,000 for each of fiscal years 2009 and 2010, and 
$116,250,000 for the period beginning October 1, 2010 and 
ending December 31, 2010,’’; and 
(N) in subparagraph (N), by striking ‘‘and $8,800,000 
for fiscal year 2009’’ and inserting ‘‘$8,800,000 for each 
of fiscal years 2009 and 2010, and $2,200,000 for the period 
beginning October 1, 2010 and ending December 31, 2010,’’. 
(b) CAPITAL INVESTMENT GRANTS.—Section 5338(c) of title 49, 
United States Code, is amended— 
(1) in paragraph (3), by striking ‘‘and’’ at the end; 
(2) in paragraph (4), by striking the period at the end 
and inserting a semicolon; and 
(3) by adding at the end the following: 
‘‘(5) $2,000,000,000 for fiscal year 2010; and 
‘‘(6) $500,000,000 for the period of October 1, 2010 through 
December 31, 2010.’’. 
(c) RESEARCH AND UNIVERSITY RESEARCH CENTERS.—Section 
5338(d) of title 49, United States Code, is amended— 
(1) in paragraph (1), in the matter preceding subparagraph 
(A), by striking ‘‘and $69,750,000 for fiscal year 2009’’ and 
inserting ‘‘$69,750,000 for each of fiscal years 2009 and 2010, 
and $17,437,500 for the period beginning October 1, 2010, 
and ending December 31, 2010’’; and 
(2) by adding at the end the following: 
‘‘(3) ADDITIONAL AUTHORIZATIONS.— 
‘‘(A) IN GENERAL.— 
‘‘(i) FISCAL YEAR 2010.—Of amounts authorized to 
be appropriated for fiscal year 2010 under paragraph 
(1), the Secretary shall allocate for each of the activities 
and projects described in subparagraphs (A) through 
(F) of paragraph (1) an amount equal to the amount 
allocated for fiscal year 2009 under each such subpara-
graph. 
‘‘(ii) OCTOBER 1, 2010 THROUGH DECEMBER 31, 2010.— 
Of amounts authorized to be appropriated for the 
period beginning October 1, 2010, through December 
31, 2010, under paragraph (1), the Secretary shall 
allocate for each of the activities and projects described 
in subparagraphs (A) through (F) of paragraph (1) 
an amount equal to 25 percent of the amount allocated 
for fiscal year 2009 under each such subparagraph. 
‘‘(B) UNIVERSITY CENTERS PROGRAM.— 
Allocations. 
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124 STAT. 92 
PUBLIC LAW 111–147—MAR. 18, 2010 
‘‘(i) FISCAL YEAR 2010.—Of the amounts allocated 
under subparagraph (A)(i) for the university centers 
program under section 5506 for fiscal year 2010, the 
Secretary shall allocate for each program described 
in clauses (i) through (iii) and (v) through (viii) of 
paragraph (2)(A) an amount equal to the amount allo-
cated for fiscal year 2009 under each such clause. 
‘‘(ii) OCTOBER 1, 2010 THROUGH DECEMBER 31, 2010.— 
Of the amounts allocated under subparagraph (A)(i) 
for the university centers program under section 5506 
for the period beginning October 1, 2010, and ending 
December 31, 2010, the Secretary shall allocate for 
each program described in clauses (i) through (iii) and 
(v) through (viii) of paragraph (2)(A) an amount equal 
to 25 percent of the amount allocated for fiscal year 
2009 under each such clause. 
‘‘(iii) FUNDING.—If the Secretary determines that 
a project or activity described in paragraph (2) received 
sufficient funds in fiscal year 2009, or a previous fiscal 
year, to carry out the purpose for which the project 
or activity was authorized, the Secretary may not allo-
cate any amounts under clause (i) or (ii) for the project 
or activity for fiscal year 2010, or any subsequent 
fiscal year.’’. 
(d) ADMINISTRATION.—Section 5338(e) of title 49, United States 
Code, is amended— 
(1) in paragraph (3), by striking ‘‘and’’ at the end; 
(2) in paragraph (4), by striking the period at the end 
and inserting a semicolon; and 
(3) by adding at the end the following: 
‘‘(5) $98,911,000 for fiscal year 2010; and 
‘‘(6) $24,727,750 for the period beginning October 1, 2010, 
and ending December 31, 2010.’’. 
SEC. 437. AMENDMENTS TO SAFETEA–LU. 
(a) CONTRACTED PARATRANSIT PILOT.—Section 3009(i)(1) of the 
SAFETEA–LU (Public Law 109–59; 119 Stat. 1572) is amended 
by striking ‘‘2009’’ and inserting ‘‘2010, and for the period beginning 
October 1, 2010, and ending December 31, 2010’’. 
(b) PUBLIC-PRIVATE
PARTNERSHIP
PILOT
PROGRAM.—Section 
3011 of the SAFETEA–LU (49 U.S.C. 5309 note) is amended— 
(1) in subsection (c)(5), by striking ‘‘2009’’ and inserting 
‘‘2010 and the period beginning October 1, 2010, and ending 
December 31, 2010’’; and 
(2) in subsection (d), by striking ‘‘2009’’ and inserting ‘‘2010, 
and for the period beginning October 1, 2010, and ending 
December 31, 2010’’. 
(c) ELDERLY INDIVIDUALS AND INDIVIDUALS WITH DISABILITIES 
PILOT PROGRAM.—Section 3012(b)(8) of the SAFETEA–LU (49 
U.S.C. 5310 note) is amended by striking ‘‘September 30, 2009’’ 
and inserting ‘‘December 31, 2010’’. 
(d) OBLIGATION CEILING.—Section 3040 of the SAFETEA–LU 
(Public Law 109–59; 119 Stat. 1639) is amended— 
(1) in paragraph (4), by striking ‘‘and’’ at the end; 
(2) in paragraph (5), by striking the period at the end 
and inserting a semicolon; and 
(3) by adding at the end the following: 
Determination. 
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124 STAT. 93 
PUBLIC LAW 111–147—MAR. 18, 2010 
‘‘(6) $10,507,752,000 for fiscal year 2010, of which not more 
than $8,360,565,000 shall be from the Mass Transit Account; 
and 
‘‘(7) $2,626,938,000 for the period beginning October 1, 
2010, and ending December 31, 2010, of which not more than 
$2,090,141,250 shall be from the Mass Transit Account.’’. 
(e) PROJECT AUTHORIZATIONS FOR NEW FIXED GUIDEWAY CAP-
ITAL PROJECTS.—Section 3043 of the SAFETEA–LU (Public Law 
109–59; 119 Stat. 1640) is amended— 
(1) in subsection (b), in the matter preceding paragraph 
(1), by striking ‘‘2009’’ and inserting ‘‘2010, and for the period 
beginning October 1, 2010, and ending December 31, 2010,’’; 
and 
(2) in subsection (c), in the matter preceding paragraph 
(1), by striking ‘‘2009’’ and inserting ‘‘2010, and for the period 
beginning October 1, 2010, and ending December 31, 2010,’’. 
(f) ALLOCATIONS FOR NATIONAL RESEARCH AND TECHNOLOGY 
PROGRAMS.—Section 3046 of the SAFETEA–LU (49 U.S.C. 5338 
note) is amended— 
(1) in subsection (b), by inserting ‘‘or period’’ after ‘‘fiscal 
year’’; and 
(2) by adding at the end the following: 
‘‘(c) ADDITIONAL APPROPRIATIONS.—The Secretary shall allocate 
amounts appropriated pursuant to section 5338(d) of title 49, United 
States Code, for national research and technology programs under 
sections 5312, 5314, and 5322 of such title— 
‘‘(1) for fiscal year 2010, in amounts equal to the amounts 
allocated for fiscal year 2009 under each of paragraphs (2), 
(3), (5), (6), and (8) through (25) of subsection (a); and 
‘‘(2) for the period beginning October 1, 2010, and ending 
December 31, 2010, in amounts equal to 25 percent of the 
amounts allocated for fiscal year 2009 under each of paragraphs 
(2), (3), (5), (6), and (8) through (25) of subsection (a). 
‘‘(d) FUNDING.—If the Secretary determines that a project or 
activity described in subsection (a) received sufficient funds in fiscal 
year 2009, or a previous fiscal year, to carry out the purpose 
for which the project or activity was authorized, the Secretary 
may not allocate any amounts under subsection (c) for the project 
or activity for fiscal year 2010, or any subsequent fiscal year.’’. 
Subtitle D—Revenue Provisions 
SEC. 441. REPEAL OF PROVISION PROHIBITING THE CREDITING OF 
INTEREST TO THE HIGHWAY TRUST FUND. 
(a) IN GENERAL.—Paragraph (1) of section 9503(f) is amended 
by striking subparagraph (B). 
(b) CONFORMING AMENDMENTS.—Such paragraph, as amended 
by paragraph (1), is further amended— 
(1) by striking ‘‘, and’’ at the end of subparagraph (A) 
and inserting a period; and 
(2) by striking ‘‘1998’’ in the matter preceding subparagraph 
(A) and all that follows through ‘‘the opening balance’’ and 
inserting ‘‘1998, the opening balance’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on the date of the enactment of this title. 
26 USC 9503 
note. 
26 USC 9503. 
Determination. 
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124 STAT. 94 
PUBLIC LAW 111–147—MAR. 18, 2010 
SEC. 442. RESTORATION OF CERTAIN FOREGONE INTEREST TO HIGH-
WAY TRUST FUND. 
(a) IN GENERAL.—Paragraph (2) of section 9503(f) is amended 
to read as follows: 
‘‘(2) RESTORATION OF FOREGONE INTEREST.—Out of money 
in the Treasury not otherwise appropriated, there is hereby 
appropriated— 
‘‘(A) $14,700,000,000 to the Highway Account (as 
defined in subsection (e)(5)(B)) in the Highway Trust Fund; 
and 
‘‘(B) $4,800,000,000 to the Mass Transit Account in 
the Highway Trust Fund.’’. 
(b) CONFORMING AMENDMENT.—Paragraph (1) of section 9503(e) 
is amended by striking ‘‘this subsection’’ and inserting ‘‘this section’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on the date of the enactment of this Act. 
SEC. 443. TREATMENT OF CERTAIN AMOUNTS APPROPRIATED TO 
HIGHWAY TRUST FUND. 
(a) IN GENERAL.—Section 9503(f), as amended by this Act, 
is amended by adding at the end the following new paragraph: 
‘‘(4) TREATMENT OF APPROPRIATED AMOUNTS.—Any amount 
appropriated under this subsection to the Highway Trust Fund 
shall remain available without fiscal year limitation.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall take effect on the date of the enactment of this Act. 
SEC. 444. TERMINATION OF TRANSFERS FROM HIGHWAY TRUST FUND 
FOR CERTAIN REPAYMENTS AND CREDITS. 
(a) IN GENERAL.—Section 9503(c) is amended by striking para-
graph (2) and by redesignating paragraphs (3), (4), (5), and (6) 
as paragraphs (2), (3), (4), and (5), respectively. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 9502(a) is amended by striking ‘‘section 
9503(c)(7)’’ and inserting ‘‘section 9503(c)(5)’’. 
(2) Section 9503(b)(4)(D) is amended by striking ‘‘paragraph 
(4)(D) or (5)(B)’’ and inserting ‘‘paragraph (3)(D) or (4)(B)’’. 
(3) Paragraph (2) of section 9503(c), as redesignated by 
subsection (a), is amended by adding at the end the following 
new sentence: ‘‘The amounts payable from the Highway Trust 
Fund under the preceding sentence shall be determined by 
taking into account only the portion of the taxes which are 
deposited into the Highway Trust Fund.’’. 
(4) Section 9503(e)(5)(A) is amended by striking ‘‘(2), (3), 
and (4)’’ and inserting ‘‘(2) and (3)’’. 
(5) Section 9504(a) is amended by striking ‘‘section 
9503(c)(4), section 9503(c)(5)’’ and inserting ‘‘section 9503(c)(3), 
section 9503(c)(4)’’. 
(6) Section 9504(b)(2) is amended by striking ‘‘section 
9503(c)(5)’’ and inserting ‘‘section 9503(c)(4)’’. 
(7) Section 9504(e) is amended by striking ‘‘section 
9503(c)(4)’’ and inserting section ‘‘9503(c)(3)’’. 
(c) EFFECTIVE DATE.—The amendment made by this section 
shall apply to transfers relating to amounts paid and credits allowed 
after the date of the enactment of this Act. 
SEC. 445. EXTENSION OF AUTHORITY FOR EXPENDITURES. 
(a) HIGHWAYS TRUST FUND.— 
Applicability. 
26 USC 9502 
note. 
26 USC 9503 
note. 
26 USC 9503. 
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124 STAT. 95 
PUBLIC LAW 111–147—MAR. 18, 2010 
(1) HIGHWAY ACCOUNT.—Paragraph (1) of section 9503(c) 
is amended— 
(A) by striking ‘‘September 30, 2009 (October 1, 2009’’ 
and inserting ‘‘December 31, 2010 (January 1, 2011’’; and 
(B) by striking ‘‘under’’ and all that follows and 
inserting ‘‘under the Surface Transportation Extension Act 
of 2010 or any other provision of law which was referred 
to in this paragraph before the date of the enactment 
of such Act (as such Act and provisions of law are in 
effect on the date of the enactment of such Act).’’. 
(2) MASS
TRANSIT
ACCOUNT.—Paragraph (3) of section 
9503(e) is amended— 
(A) by striking ‘‘October 1, 2009’’ and inserting 
‘‘January 1, 2011’’; and 
(B) by striking ‘‘in accordance with’’ and all that follows 
and inserting ‘‘in accordance with the Surface Transpor-
tation Extension Act of 2010 or any other provision of 
law which was referred to in this paragraph before the 
date of the enactment of such Act (as such Act and provi-
sions of law are in effect on the date of the enactment 
of such Act).’’. 
(3) EXCEPTION
TO
LIMITATION
ON
TRANSFERS.—Subpara-
graph (B) of section 9503(b)(6) is amended by striking ‘‘Sep-
tember 30, 2009 (October 1, 2009’’ and inserting ‘‘December 
31, 2010 (January 1, 2011’’. 
(b) SPORT FISH RESTORATION
AND BOATING TRUST FUND.— 
(1) IN
GENERAL.—Paragraph (2) of section 9504(b) is 
amended— 
(A) by striking ‘‘(as in effect’’ in subparagraph (A) 
and all that follows in such subparagraph and inserting 
‘‘(as in effect on the date of the enactment of the Surface 
Transportation Extension Act of 2010),’’, 
(B) by striking ‘‘(as in effect’’ in subparagraph (B) 
and all that follows in such subparagraph and inserting 
‘‘(as in effect on the date of the enactment of the Surface 
Transportation Extension Act of 2010), and’’, and 
(C) by striking ‘‘(as in effect’’ in subparagraph (C) 
and all that follows in such subparagraph and inserting 
‘‘(as in effect on the date of the enactment of the Surface 
Transportation Extension Act of 2010).’’. 
(2) EXCEPTION TO LIMITATION ON TRANSFERS.—Paragraph 
(2) of section 9504(d) is amended by striking ‘‘October 1, 2009’’ 
and inserting ‘‘January 1, 2011’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on September 30, 2009. 
SEC. 446. LEVEL OF OBLIGATION LIMITATIONS. 
(a) HIGHWAY CATEGORY.—Section 8003(a) of the SAFETEA– 
LU (2 U.S.C. 901 note; 119 Stat. 1917) is amended— 
(1) in paragraph (4), by striking ‘‘and’’ at the end; 
(2) in paragraph (5), by striking the period at the end 
and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(6) for the period beginning on October 1, 2009, and ending 
on September 30, 2010, $42,469,970,178. 
‘‘(7) for the period beginning on October 1, 2010, and ending 
on December 31, 2010, $10,617,492,545.’’. 
26 USC 9503 
note. 
26 USC 9503. 
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124 STAT. 96 
PUBLIC LAW 111–147—MAR. 18, 2010 
(b) 
MASS
TRANSIT
CATEGORY.—Section 
8003(b) 
of 
the 
SAFETEA–LU (2 U.S.C. 901 note; 119 Stat. 1917) is amended— 
(1) in paragraph (4), by striking ‘‘and’’ at the end; 
(2) in paragraph (5), by striking the period at the end 
and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(6) for the period beginning on October 1, 2009, and ending 
on December 31, 2010, $10,338,065,000. 
‘‘(7) for the period beginning on October 1, 2010, and ending 
on December 31, 2010, $2,584,516,250.’’. 
(c) TREATMENT OF FUNDS.—No adjustment pursuant to section 
110 of title 23, United States Code, shall be made for fiscal year 
2010 or fiscal year 2011. 
Subtitle E—Disadvantaged Business 
Enterprises 
SEC. 451. DISADVANTAGED BUSINESS ENTERPRISES. 
(a) DEFINITIONS.—In this section, the following definitions 
apply: 
(1) SMALL BUSINESS CONCERN.—The term ‘‘small business 
concern’’ has the meaning that term has under section 3 of 
the Small Business Act (15 U.S.C. 632), except that the term 
shall not include any concern or group of concerns controlled 
by the same socially and economically disadvantaged individual 
or individuals which has average annual gross receipts over 
the preceding 3 fiscal years in excess of $22,410,000, as adjusted 
annually by the Secretary of Transportation for inflation. 
(2) SOCIALLY AND ECONOMICALLY DISADVANTAGED INDIVID-
UALS.—The term ‘‘socially and economically disadvantaged 
individuals’’ has the meaning that term has under section 8(d) 
of the Small Business Act (15 U.S.C. 637(d)) and relevant 
subcontracting regulations issued pursuant to that Act, except 
that women shall be presumed to be socially and economically 
disadvantaged individuals for purposes of this section. 
(b) GENERAL RULE.—Except to the extent that the Secretary 
of Transportation determines otherwise, not less than 10 percent 
of the amounts made available for any program under titles I, 
III, and V of SAFETEA–LU (Public Law 109–59), subtitles A and 
C of this title, and section 403 of title 23, United States Code, 
shall be expended through small business concerns owned and 
controlled by socially and economically disadvantaged individuals. 
(c) ANNUAL LISTING
OF DISADVANTAGED BUSINESS ENTER-
PRISES.—Each State shall annually 
(1) survey and compile a list of the small business concerns 
referred to in subsection (a) and the location of the concerns 
in the State; and 
(2) notify the Secretary of Transportation, in writing, of 
the percentage of the concerns that are controlled by women, 
by socially and economically disadvantaged individuals (other 
than women), and by individuals who are women and are 
otherwise socially and economically disadvantaged individuals. 
(d) UNIFORM CERTIFICATION.—The Secretary of Transportation 
shall establish minimum uniform criteria for State governments 
to use in certifying whether a concern qualifies for purposes of 
this section. The minimum uniform criteria shall include, but not 
Criteria. 
Notification. 
States. 
23 USC 101 note. 
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124 STAT. 97 
PUBLIC LAW 111–147—MAR. 18, 2010 
be limited to, on-site visits, personal interviews, licenses, analysis 
of stock ownership, listing of equipment, analysis of bonding 
capacity, listing of work completed, resume of principal owners, 
financial capacity, and type of work preferred. 
(e) COMPLIANCE WITH COURT ORDERS.—Nothing in this section 
limits the eligibility of an entity or person to receive funds made 
available under titles I, III, and V of SAFETEA–LU (Public Law 
109–59), subtitles A and C of this title, and section 403 of title 
23, United States Code, if the entity or person is prevented, in 
whole or in part, from complying with subsection (b) because a 
Federal court issues a final order in which the court finds that 
the requirement of subsection (b), or the program established under 
subsection (b), is unconstitutional. 
TITLE V—OFFSET PROVISIONS 
Subtitle A—Foreign Account Tax 
Compliance 
PART I—INCREASED DISCLOSURE OF 
BENEFICIAL OWNERS 
SEC. 501. REPORTING ON CERTAIN FOREIGN ACCOUNTS. 
(a) IN GENERAL.—The Internal Revenue Code of 1986 is 
amended by inserting after chapter 3 the following new chapter: 
‘‘CHAPTER 4—TAXES TO ENFORCE REPORTING ON 
CERTAIN FOREIGN ACCOUNTS 
‘‘Sec. 1471. Withholdable payments to foreign financial institutions. 
‘‘Sec. 1472. Withholdable payments to other foreign entities. 
‘‘Sec. 1473. Definitions. 
‘‘Sec. 1474. Special rules. 
‘‘SEC. 1471. WITHHOLDABLE PAYMENTS TO FOREIGN FINANCIAL 
INSTITUTIONS. 
‘‘(a) IN GENERAL.—In the case of any withholdable payment 
to a foreign financial institution which does not meet the require-
ments of subsection (b), the withholding agent with respect to 
such payment shall deduct and withhold from such payment a 
tax equal to 30 percent of the amount of such payment. 
‘‘(b) REPORTING REQUIREMENTS, ETC.— 
‘‘(1) IN GENERAL.—The requirements of this subsection are 
met with respect to any foreign financial institution if an agree-
ment is in effect between such institution and the Secretary 
under which such institution agrees— 
‘‘(A) to obtain such information regarding each holder 
of each account maintained by such institution as is nec-
essary to determine which (if any) of such accounts are 
United States accounts, 
‘‘(B) to comply with such verification and due diligence 
procedures as the Secretary may require with respect to 
the identification of United States accounts, 
‘‘(C) in the case of any United States account main-
tained by such institution, to report on an annual basis 
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124 STAT. 98 
PUBLIC LAW 111–147—MAR. 18, 2010 
the information described in subsection (c) with respect 
to such account, 
‘‘(D) to deduct and withhold a tax equal to 30 percent 
of— 
‘‘(i) any passthru payment which is made by such 
institution to a recalcitrant account holder or another 
foreign financial institution which does not meet the 
requirements of this subsection, and 
‘‘(ii) in the case of any passthru payment which 
is made by such institution to a foreign financial 
institution which has in effect an election under para-
graph (3) with respect to such payment, so much of 
such payment as is allocable to accounts held by recal-
citrant account holders or foreign financial institutions 
which do not meet the requirements of this subsection, 
‘‘(E) to comply with requests by the Secretary for addi-
tional information with respect to any United States 
account maintained by such institution, and 
‘‘(F) in any case in which any foreign law would (but 
for a waiver described in clause (i)) prevent the reporting 
of any information referred to in this subsection or sub-
section (c) with respect to any United States account main-
tained by such institution— 
‘‘(i) to attempt to obtain a valid and effective 
waiver of such law from each holder of such account, 
and 
‘‘(ii) if a waiver described in clause (i) is not 
obtained from each such holder within a reasonable 
period of time, to close such account. 
Any agreement entered into under this subsection may be 
terminated by the Secretary upon a determination by the Sec-
retary that the foreign financial institution is out of compliance 
with such agreement. 
‘‘(2) FINANCIAL INSTITUTIONS DEEMED TO MEET REQUIRE-
MENTS IN CERTAIN CASES.—A foreign financial institution may 
be treated by the Secretary as meeting the requirements of 
this subsection if— 
‘‘(A) such institution— 
‘‘(i) complies with such procedures as the Secretary 
may prescribe to ensure that such institution does 
not maintain United States accounts, and 
‘‘(ii) meets such other requirements as the Sec-
retary may prescribe with respect to accounts of other 
foreign financial institutions maintained by such 
institution, or 
‘‘(B) such institution is a member of a class of institu-
tions with respect to which the Secretary has determined 
that the application of this section is not necessary to 
carry out the purposes of this section. 
‘‘(3) ELECTION TO BE WITHHELD UPON RATHER THAN WITH-
HOLD ON PAYMENTS TO RECALCITRANT ACCOUNT HOLDERS AND 
NONPARTICIPATING
FOREIGN
FINANCIAL
INSTITUTIONS.—In the 
case of a foreign financial institution which meets the require-
ments of this subsection and such other requirements as the 
Secretary may provide and which elects the application of this 
paragraph— 
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124 STAT. 99 
PUBLIC LAW 111–147—MAR. 18, 2010 
‘‘(A) the requirements of paragraph (1)(D) shall not 
apply, 
‘‘(B) the withholding tax imposed under subsection (a) 
shall apply with respect to any withholdable payment to 
such institution to the extent such payment is allocable 
to accounts held by recalcitrant account holders or foreign 
financial institutions which do not meet the requirements 
of this subsection, and 
‘‘(C) the agreement described in paragraph (1) shall— 
‘‘(i) require such institution to notify the with-
holding agent with respect to each such payment of 
the institution’s election under this paragraph and 
such other information as may be necessary for the 
withholding agent to determine the appropriate 
amount to deduct and withhold from such payment, 
and 
‘‘(ii) include a waiver of any right under any treaty 
of the United States with respect to any amount 
deducted and withheld pursuant to an election under 
this paragraph. 
To the extent provided by the Secretary, the election under 
this paragraph may be made with respect to certain classes 
or types of accounts of the foreign financial institution. 
‘‘(c) INFORMATION REQUIRED TO BE REPORTED
ON UNITED 
STATES ACCOUNTS.— 
‘‘(1) IN GENERAL.—The agreement described in subsection 
(b) shall require the foreign financial institution to report the 
following with respect to each United States account maintained 
by such institution: 
‘‘(A) The name, address, and TIN of each account holder 
which is a specified United States person and, in the case 
of any account holder which is a United States owned 
foreign entity, the name, address, and TIN of each substan-
tial United States owner of such entity. 
‘‘(B) The account number. 
‘‘(C) The account balance or value (determined at such 
time and in such manner as the Secretary may provide). 
‘‘(D) Except to the extent provided by the Secretary, 
the gross receipts and gross withdrawals or payments from 
the account (determined for such period and in such 
manner as the Secretary may provide). 
‘‘(2) ELECTION
TO
BE
SUBJECT
TO
SAME
REPORTING
AS 
UNITED STATES FINANCIAL INSTITUTIONS.—In the case of a for-
eign financial institution which elects the application of this 
paragraph— 
‘‘(A) subparagraphs (C) and (D) of paragraph (1) shall 
not apply, and 
‘‘(B) the agreement described in subsection (b) shall 
require such foreign financial institution to report such 
information with respect to each United States account 
maintained by such institution as such institution would 
be required to report under sections 6041, 6042, 6045, 
and 6049 if— 
‘‘(i) such institution were a United States person, 
and 
Applicability. 
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124 STAT. 100 
PUBLIC LAW 111–147—MAR. 18, 2010 
‘‘(ii) each holder of such account which is a speci-
fied United States person or United States owned for-
eign entity were a natural person and citizen of the 
United States. 
An election under this paragraph shall be made at such 
time, in such manner, and subject to such conditions as 
the Secretary may provide. 
‘‘(3) SEPARATE
REQUIREMENTS
FOR
QUALIFIED
INTER-
MEDIARIES.—In the case of a foreign financial institution which 
is treated as a qualified intermediary by the Secretary for 
purposes of section 1441 and the regulations issued thereunder, 
the requirements of this section shall be in addition to any 
reporting or other requirements imposed by the Secretary for 
purposes of such treatment. 
‘‘(d) DEFINITIONS.—For purposes of this section— 
‘‘(1) UNITED STATES ACCOUNT.— 
‘‘(A) IN GENERAL.—The term ‘United States account’ 
means any financial account which is held by one or more 
specified United States persons or United States owned 
foreign entities. 
‘‘(B) EXCEPTION
FOR
CERTAIN
ACCOUNTS
HELD
BY 
INDIVIDUALS.—Unless the foreign financial institution 
elects to not have this subparagraph apply, such term 
shall not include any depository account maintained by 
such financial institution if— 
‘‘(i) each holder of such account is a natural person, 
and 
‘‘(ii) with respect to each holder of such account, 
the aggregate value of all depository accounts held 
(in whole or in part) by such holder and maintained 
by the same financial institution which maintains such 
account does not exceed $50,000. 
To the extent provided by the Secretary, financial institu-
tions which are members of the same expanded affiliated 
group shall be treated for purposes of clause (ii) as a 
single financial institution. 
‘‘(C) ELIMINATION OF DUPLICATIVE REPORTING REQUIRE-
MENTS.—Such term shall not include any financial account 
in a foreign financial institution if— 
‘‘(i) such account is held by another financial 
institution which meets the requirements of subsection 
(b), or 
‘‘(ii) the holder of such account is otherwise subject 
to information reporting requirements which the Sec-
retary determines would make the reporting required 
by this section with respect to United States accounts 
duplicative. 
‘‘(2) FINANCIAL ACCOUNT.—Except as otherwise provided 
by the Secretary, the term ‘financial account’ means, with 
respect to any financial institution— 
‘‘(A) any depository account maintained by such finan-
cial institution, 
‘‘(B) any custodial account maintained by such financial 
institution, and 
‘‘(C) any equity or debt interest in such financial 
institution (other than interests which are regularly traded 
on an established securities market). 
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124 STAT. 101 
PUBLIC LAW 111–147—MAR. 18, 2010 
Any equity or debt interest which constitutes a financial 
account under subparagraph (C) with respect to any financial 
institution shall be treated for purposes of this section as main-
tained by such financial institution. 
‘‘(3) UNITED
STATES
OWNED
FOREIGN
ENTITY.—The term 
‘United States owned foreign entity’ means any foreign entity 
which has one or more substantial United States owners. 
‘‘(4) FOREIGN FINANCIAL INSTITUTION.—The term ‘foreign 
financial institution’ means any financial institution which is 
a foreign entity. Except as otherwise provided by the Secretary, 
such term shall not include a financial institution which is 
organized under the laws of any possession of the United States. 
‘‘(5) FINANCIAL INSTITUTION.—Except as otherwise provided 
by the Secretary, the term ‘financial institution’ means any 
entity that— 
‘‘(A) accepts deposits in the ordinary course of a 
banking or similar business, 
‘‘(B) as a substantial portion of its business, holds 
financial assets for the account of others, or 
‘‘(C) is engaged (or holding itself out as being engaged) 
primarily in the business of investing, reinvesting, or 
trading in securities (as defined in section 475(c)(2) without 
regard to the last sentence thereof), partnership interests, 
commodities (as defined in section 475(e)(2)), or any interest 
(including a futures or forward contract or option) in such 
securities, partnership interests, or commodities. 
‘‘(6) RECALCITRANT
ACCOUNT
HOLDER.—The term ‘recal-
citrant account holder’ means any account holder which— 
‘‘(A) fails to comply with reasonable requests for the 
information referred to in subsection (b)(1)(A) or (c)(1)(A), 
or 
‘‘(B) fails to provide a waiver described in subsection 
(b)(1)(F) upon request. 
‘‘(7) PASSTHRU
PAYMENT.—The term ‘passthru payment’ 
means any withholdable payment or other payment to the 
extent attributable to a withholdable payment. 
‘‘(e) AFFILIATED GROUPS.— 
‘‘(1) IN GENERAL.—The requirements of subsections (b) and 
(c)(1) shall apply— 
‘‘(A) with respect to United States accounts maintained 
by the foreign financial institution, and 
‘‘(B) except as otherwise provided by the Secretary, 
with respect to United States accounts maintained by each 
other foreign financial institution (other than any foreign 
financial institution which meets the requirements of sub-
section (b)) which is a member of the same expanded affili-
ated group as such foreign financial institution. 
‘‘(2) EXPANDED AFFILIATED GROUP.—For purposes of this 
section, the term ‘expanded affiliated group’ means an affiliated 
group as defined in section 1504(a), determined— 
‘‘(A) by substituting ‘more than 50 percent’ for ‘at least 
80 percent’ each place it appears, and 
‘‘(B) without regard to paragraphs (2) and (3) of section 
1504(b). 
A partnership or any other entity (other than a corporation) 
shall be treated as a member of an expanded affiliated group 
if such entity is controlled (within the meaning of section 
Applicability. 
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124 STAT. 102 
PUBLIC LAW 111–147—MAR. 18, 2010 
954(d)(3)) by members of such group (including any entity 
treated as a member of such group by reason of this sentence). 
‘‘(f) EXCEPTION FOR CERTAIN PAYMENTS.—Subsection (a) shall 
not apply to any payment to the extent that the beneficial owner 
of such payment is— 
‘‘(1) any foreign government, any political subdivision of 
a foreign government, or any wholly owned agency or 
instrumentality of any one or more of the foregoing, 
‘‘(2) any international organization or any wholly owned 
agency or instrumentality thereof, 
‘‘(3) any foreign central bank of issue, or 
‘‘(4) any other class of persons identified by the Secretary 
for purposes of this subsection as posing a low risk of tax 
evasion. 
‘‘SEC. 1472. WITHHOLDABLE PAYMENTS TO OTHER FOREIGN ENTITIES. 
‘‘(a) IN GENERAL.—In the case of any withholdable payment 
to a non-financial foreign entity, if— 
‘‘(1) the beneficial owner of such payment is such entity 
or any other non-financial foreign entity, and 
‘‘(2) the requirements of subsection (b) are not met with 
respect to such beneficial owner, 
then the withholding agent with respect to such payment shall 
deduct and withhold from such payment a tax equal to 30 percent 
of the amount of such payment. 
‘‘(b) REQUIREMENTS
FOR
WAIVER
OF
WITHHOLDING.—The 
requirements of this subsection are met with respect to the bene-
ficial owner of a payment if— 
‘‘(1) such beneficial owner or the payee provides the with-
holding agent with either— 
‘‘(A) a certification that such beneficial owner does 
not have any substantial United States owners, or 
‘‘(B) the name, address, and TIN of each substantial 
United States owner of such beneficial owner, 
‘‘(2) the withholding agent does not know, or have reason 
to know, that any information provided under paragraph (1) 
is incorrect, and 
‘‘(3) the withholding agent reports the information provided 
under paragraph (1)(B) to the Secretary in such manner as 
the Secretary may provide. 
‘‘(c) EXCEPTIONS.—Subsection (a) shall not apply to— 
‘‘(1) except as otherwise provided by the Secretary, any 
payment beneficially owned by— 
‘‘(A) any corporation the stock of which is regularly 
traded on an established securities market, 
‘‘(B) any corporation which is a member of the same 
expanded affiliated group (as defined in section 1471(e)(2) 
without regard to the last sentence thereof) as a corporation 
described in subparagraph (A), 
‘‘(C) any entity which is organized under the laws 
of a possession of the United States and which is wholly 
owned by one or more bona fide residents (as defined 
in section 937(a)) of such possession, 
‘‘(D) any foreign government, any political subdivision 
of a foreign government, or any wholly owned agency or 
instrumentality of any one or more of the foregoing, 
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124 STAT. 103 
PUBLIC LAW 111–147—MAR. 18, 2010 
‘‘(E) any international organization or any wholly 
owned agency or instrumentality thereof, 
‘‘(F) any foreign central bank of issue, or 
‘‘(G) any other class of persons identified by the Sec-
retary for purposes of this subsection, and 
‘‘(2) any class of payments identified by the Secretary for 
purposes of this subsection as posing a low risk of tax evasion. 
‘‘(d) NON-FINANCIAL FOREIGN ENTITY.—For purposes of this 
section, the term ‘non-financial foreign entity’ means any foreign 
entity which is not a financial institution (as defined in section 
1471(d)(5)). 
‘‘SEC. 1473. DEFINITIONS. 
‘‘For purposes of this chapter— 
‘‘(1) WITHHOLDABLE PAYMENT.—Except as otherwise pro-
vided by the Secretary— 
‘‘(A) IN GENERAL.—The term ‘withholdable payment’ 
means— 
‘‘(i) any payment of interest (including any original 
issue discount), dividends, rents, salaries, wages, pre-
miums, 
annuities, 
compensations, 
remunerations, 
emoluments, and other fixed or determinable annual 
or periodical gains, profits, and income, if such pay-
ment is from sources within the United States, and 
‘‘(ii) any gross proceeds from the sale or other 
disposition of any property of a type which can produce 
interest or dividends from sources within the United 
States. 
‘‘(B) EXCEPTION FOR INCOME CONNECTED WITH UNITED 
STATES BUSINESS.—Such term shall not include any item 
of income which is taken into account under section 
871(b)(1) or 882(a)(1) for the taxable year. 
‘‘(C) SPECIAL RULE FOR SOURCING INTEREST PAID BY 
FOREIGN
BRANCHES
OF
DOMESTIC
FINANCIAL
INSTITU-
TIONS.—Subparagraph (B) of section 861(a)(1) shall not 
apply. 
‘‘(2) SUBSTANTIAL UNITED STATES OWNER.— 
‘‘(A) IN GENERAL.—The term ‘substantial United States 
owner’ means— 
‘‘(i) with respect to any corporation, any specified 
United States person which owns, directly or indirectly, 
more than 10 percent of the stock of such corporation 
(by vote or value), 
‘‘(ii) with respect to any partnership, any specified 
United States person which owns, directly or indirectly, 
more than 10 percent of the profits interests or capital 
interests in such partnership, and 
‘‘(iii) in the case of a trust— 
‘‘(I) any specified United States person treated 
as an owner of any portion of such trust under 
subpart E of part I of subchapter J of chapter 
1, and 
‘‘(II) to the extent provided by the Secretary 
in regulations or other guidance, any specified 
United States person which holds, directly or 
indirectly, more than 10 percent of the beneficial 
interests of such trust. 
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124 STAT. 104 
PUBLIC LAW 111–147—MAR. 18, 2010 
‘‘(B) SPECIAL RULE FOR INVESTMENT VEHICLES.—In the 
case of any financial institution described in section 
1471(d)(5)(C), clauses (i), (ii), and (iii) of subparagraph 
(A) shall be applied by substituting ‘0 percent’ for ‘10 
percent’. 
‘‘(3) SPECIFIED UNITED STATES PERSON.—Except as other-
wise provided by the Secretary, the term ‘specified United 
States person’ means any United States person other than— 
‘‘(A) any corporation the stock of which is regularly 
traded on an established securities market, 
‘‘(B) any corporation which is a member of the same 
expanded affiliated group (as defined in section 1471(e)(2) 
without regard to the last sentence thereof) as a corporation 
the stock of which is regularly traded on an established 
securities market, 
‘‘(C) any organization exempt from taxation under sec-
tion 501(a) or an individual retirement plan, 
‘‘(D) the United States or any wholly owned agency 
or instrumentality thereof, 
‘‘(E) any State, the District of Columbia, any possession 
of the United States, any political subdivision of any of 
the foregoing, or any wholly owned agency or instrumen-
tality of any one or more of the foregoing, 
‘‘(F) any bank (as defined in section 581), 
‘‘(G) any real estate investment trust (as defined in 
section 856), 
‘‘(H) any regulated investment company (as defined 
in section 851), 
‘‘(I) any common trust fund (as defined in section 
584(a)), and 
‘‘(J) any trust which— 
‘‘(i) is exempt from tax under section 664(c), or 
‘‘(ii) is described in section 4947(a)(1). 
‘‘(4) WITHHOLDING AGENT.—The term ‘withholding agent’ 
means all persons, in whatever capacity acting, having the 
control, receipt, custody, disposal, or payment of any 
withholdable payment. 
‘‘(5) FOREIGN ENTITY.—The term ‘foreign entity’ means any 
entity which is not a United States person. 
‘‘SEC. 1474. SPECIAL RULES. 
‘‘(a) LIABILITY FOR WITHHELD TAX.—Every person required to 
deduct and withhold any tax under this chapter is hereby made 
liable for such tax and is hereby indemnified against the claims 
and demands of any person for the amount of any payments made 
in accordance with the provisions of this chapter. 
‘‘(b) CREDITS AND REFUNDS.— 
‘‘(1) IN GENERAL.—Except as provided in paragraph (2), 
the determination of whether any tax deducted and withheld 
under this chapter results in an overpayment by the beneficial 
owner of the payment to which such tax is attributable shall 
be made as if such tax had been deducted and withheld under 
subchapter A of chapter 3. 
‘‘(2) SPECIAL RULE WHERE FOREIGN FINANCIAL INSTITUTION 
IS BENEFICIAL OWNER OF PAYMENT.— 
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124 STAT. 105 
PUBLIC LAW 111–147—MAR. 18, 2010 
‘‘(A) IN
GENERAL.—In the case of any tax properly 
deducted and withheld under section 1471 from a specified 
financial institution payment— 
‘‘(i) if the foreign financial institution referred to 
in subparagraph (B) with respect to such payment 
is entitled to a reduced rate of tax with respect to 
such payment by reason of any treaty obligation of 
the United States— 
‘‘(I) the amount of any credit or refund with 
respect to such tax shall not exceed the amount 
of credit or refund attributable to such reduction 
in rate, and 
‘‘(II) no interest shall be allowed or paid with 
respect to such credit or refund, and 
‘‘(ii) if such foreign financial institution is not so 
entitled, no credit or refund shall be allowed or paid 
with respect to such tax. 
‘‘(B) SPECIFIED FINANCIAL INSTITUTION PAYMENT.—The 
term ‘specified financial institution payment’ means any 
payment if the beneficial owner of such payment is a for-
eign financial institution. 
‘‘(3) REQUIREMENT TO IDENTIFY SUBSTANTIAL UNITED STATES 
OWNERS.—No credit or refund shall be allowed or paid with 
respect to any tax properly deducted and withheld under this 
chapter unless the beneficial owner of the payment provides 
the Secretary such information as the Secretary may require 
to determine whether such beneficial owner is a United States 
owned foreign entity (as defined in section 1471(d)(3)) and 
the identity of any substantial United States owners of such 
entity. 
‘‘(c) CONFIDENTIALITY OF INFORMATION.— 
‘‘(1) IN
GENERAL.—For purposes of this chapter, rules 
similar to the rules of section 3406(f) shall apply. 
‘‘(2) DISCLOSURE OF LIST OF PARTICIPATING FOREIGN FINAN-
CIAL INSTITUTIONS PERMITTED.—The identity of a foreign finan-
cial institution which meets the requirements of section 1471(b) 
shall not be treated as return information for purposes of 
section 6103. 
‘‘(d) COORDINATION WITH OTHER WITHHOLDING PROVISIONS.— 
The Secretary shall provide for the coordination of this chapter 
with other withholding provisions under this title, including pro-
viding for the proper crediting of amounts deducted and withheld 
under this chapter against amounts required to be deducted and 
withheld under such other provisions. 
‘‘(e) TREATMENT OF WITHHOLDING UNDER AGREEMENTS.—Any 
tax deducted and withheld pursuant to an agreement described 
in section 1471(b) shall be treated for purposes of this title as 
a tax deducted and withheld by a withholding agent under section 
1471(a). 
‘‘(f) REGULATIONS.—The Secretary shall prescribe such regula-
tions or other guidance as may be necessary or appropriate to 
carry out the purposes of, and prevent the avoidance of, this 
chapter.’’. 
(b) SPECIAL RULE
FOR INTEREST
ON OVERPAYMENTS.—Sub-
section (e) of section 6611 is amended by adding at the end the 
following new paragraph: 
26 USC 6611. 
Applicability. 
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124 STAT. 106 
PUBLIC LAW 111–147—MAR. 18, 2010 
‘‘(4) CERTAIN WITHHOLDING TAXES.—In the case of any over-
payment resulting from tax deducted and withheld under 
chapter 3 or 4, paragraphs (1), (2), and (3) shall be applied 
by substituting ‘180 days’ for ‘45 days’ each place it appears.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 6414 is amended by inserting ‘‘or 4’’ after 
‘‘chapter 3’’. 
(2) Paragraph (1) of section 6501(b) is amended by inserting 
‘‘4,’’ after ‘‘chapter 3,’’. 
(3) Paragraph (2) of section 6501(b) is amended— 
(A) by inserting ‘‘4,’’ after ‘‘chapter 3,’’ in the text 
thereof, and 
(B) by striking ‘‘TAXES AND TAX IMPOSED BY CHAPTER 
3’’ in the heading thereof and inserting ‘‘AND WITHHOLDING 
TAXES’’. 
(4) Paragraph (3) of section 6513(b) is amended— 
(A) by inserting ‘‘or 4’’ after ‘‘chapter 3’’, and 
(B) by inserting ‘‘or 1474(b)’’ after ‘‘section 1462’’. 
(5) Subsection (c) of section 6513 is amended by inserting 
‘‘4,’’ after ‘‘chapter 3,’’. 
(6) Paragraph (1) of section 6724(d) is amended by inserting 
‘‘under chapter 4 or’’ after ‘‘filed with the Secretary’’ in the 
last sentence thereof. 
(7) Paragraph (2) of section 6724(d) is amended by inserting 
‘‘or 4’’ after ‘‘chapter 3’’. 
(8) The table of chapters of the Internal Revenue Code 
of 1986 is amended by adding at the end the following new 
item: 
‘‘CHAPTER 4—TAXES TO ENFORCE REPORTING ON CERTAIN FOREIGN ACCOUNTS.’’. 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as otherwise provided in this sub-
section, the amendments made by this section shall apply to 
payments made after December 31, 2012. 
(2) GRANDFATHERED TREATMENT OF OUTSTANDING OBLIGA-
TIONS.—The amendments made by this section shall not require 
any amount to be deducted or withheld from any payment 
under any obligation outstanding on the date which is 2 years 
after the date of the enactment of this Act or from the gross 
proceeds from any disposition of such an obligation. 
(3) INTEREST ON OVERPAYMENTS.—The amendment made 
by subsection (b) shall apply— 
(A) in the case of such amendment’s application to 
paragraph (1) of section 6611(e) of the Internal Revenue 
Code of 1986, to returns the due date for which (determined 
without regard to extensions) is after the date of the enact-
ment of this Act, 
(B) in the case of such amendment’s application to 
paragraph (2) of such section, to claims for credit or refund 
of any overpayment filed after the date of the enactment 
of this Act (regardless of the taxable period to which such 
refund relates), and 
(C) in the case of such amendment’s application to 
paragraph (3) of such section, to refunds paid after the 
date of the enactment of this Act (regardless of the taxable 
period to which such refund relates). 
Applicability. 
26 USC 1471 
note. 
26 USC 6414. 
Applicability. 
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124 STAT. 107 
PUBLIC LAW 111–147—MAR. 18, 2010 
SEC. 502. REPEAL OF CERTAIN FOREIGN EXCEPTIONS TO REGISTERED 
BOND REQUIREMENTS. 
(a) REPEAL
OF EXCEPTION
TO DENIAL
OF DEDUCTION
FOR 
INTEREST ON NON-REGISTERED BONDS.— 
(1) IN GENERAL.—Paragraph (2) of section 163(f) is amended 
by striking subparagraph (B) and by redesignating subpara-
graph (C) as subparagraph (B). 
(2) CONFORMING AMENDMENTS.— 
(A) Paragraph (2) of section 149(a) is amended by 
inserting ‘‘or’’ at the end of subparagraph (A), by striking 
‘‘, or’’ at the end of subparagraph (B) and inserting a 
period, and by striking subparagraph (C). 
(B) Subparagraph (A) of section 163(f)(2) is amended 
by inserting ‘‘or’’ at the end of clause (ii), by striking 
‘‘, or’’ at the end of clause (iii) and inserting a period, 
and by striking clause (iv). 
(C) Subparagraph (B) of section 163(f)(2), as redesig-
nated by paragraph (1), is amended— 
(i) by striking ‘‘, and subparagraph (B),’’ in the 
matter preceding clause (i), and 
(ii) by amending clause (i) to read as follows: 
‘‘(i) such obligation is of a type which the Secretary 
has determined by regulations to be used frequently 
in avoiding Federal taxes, and’’. 
(D) Sections 165(j)(2)(A) and 1287(b)(1) are each 
amended by striking ‘‘except that clause (iv) of subpara-
graph (A), and subparagraph (B), of such section shall 
not apply’’. 
(b) REPEAL OF TREATMENT AS PORTFOLIO DEBT.— 
(1) IN
GENERAL.—Paragraph (2) of section 871(h) is 
amended to read as follows: 
‘‘(2) PORTFOLIO INTEREST.—For purposes of this subsection, 
the term ‘portfolio interest’ means any interest (including 
original issue discount) which— 
‘‘(A) would be subject to tax under subsection (a) but 
for this subsection, and 
‘‘(B) is paid on an obligation— 
‘‘(i) which is in registered form, and 
‘‘(ii) with respect to which— 
‘‘(I) the United States person who would other-
wise be required to deduct and withhold tax from 
such interest under section 1441(a) receives a 
statement (which meets the requirements of para-
graph (5)) that the beneficial owner of the obliga-
tion is not a United States person, or 
‘‘(II) the Secretary has determined that such 
a statement is not required in order to carry out 
the purposes of this subsection.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 871(h)(3)(A) is amended by striking 
‘‘subparagraph (A) or (B) of’’. 
(B) Paragraph (2) of section 881(c) is amended to read 
as follows: 
‘‘(2) PORTFOLIO INTEREST.—For purposes of this subsection, 
the term ‘portfolio interest’ means any interest (including 
original issue discount) which— 
26 USC 163. 
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124 STAT. 108 
PUBLIC LAW 111–147—MAR. 18, 2010 
‘‘(A) would be subject to tax under subsection (a) but 
for this subsection, and 
‘‘(B) is paid on an obligation— 
‘‘(i) which is in registered form, and 
‘‘(ii) with respect to which— 
‘‘(I) the person who would otherwise be 
required to deduct and withhold tax from such 
interest under section 1442(a) receives a statement 
which meets the requirements of section 871(h)(5) 
that the beneficial owner of the obligation is not 
a United States person, or 
‘‘(II) the Secretary has determined that such 
a statement is not required in order to carry out 
the purposes of this subsection.’’. 
(c) DEMATERIALIZED BOOK ENTRY SYSTEMS TREATED AS REG-
ISTERED FORM.—Paragraph (3) of section 163(f) is amended by 
inserting ‘‘, except that a dematerialized book entry system or 
other book entry system specified by the Secretary shall be treated 
as a book entry system described in such section’’ before the period 
at the end. 
(d) REPEAL OF EXCEPTION TO REQUIREMENT THAT TREASURY 
OBLIGATIONS BE IN REGISTERED FORM.— 
(1) IN GENERAL.—Subsection (g) of section 3121 of title 
31, United States Code, is amended by striking paragraph 
(2) and by redesignating paragraphs (3) and (4) as paragraphs 
(2) and (3), respectively. 
(2) CONFORMING AMENDMENTS.—Paragraph (1) of section 
3121(g) of such title is amended— 
(A) by adding ‘‘or’’ at the end of subparagraph (A), 
(B) by striking ‘‘; or’’ at the end of subparagraph (B) 
and inserting a period, and 
(C) by striking subparagraph (C). 
(e) PRESERVATION OF EXCEPTION FOR EXCISE TAX PURPOSES.— 
Paragraph (1) of section 4701(b) is amended to read as follows: 
‘‘(1) REGISTRATION-REQUIRED OBLIGATION.— 
‘‘(A) IN
GENERAL.—The term ‘registration-required 
obligation’ has the same meaning as when used in section 
163(f), except that such term shall not include any obliga-
tion which— 
‘‘(i) is required to be registered under section 
149(a), or 
‘‘(ii) is described in subparagraph (B). 
‘‘(B) CERTAIN OBLIGATIONS NOT INCLUDED.—An obliga-
tion is described in this subparagraph if— 
‘‘(i) there are arrangements reasonably designed 
to ensure that such obligation will be sold (or resold 
in connection with the original issue) only to a person 
who is not a United States person, 
‘‘(ii) interest on such obligation is payable only 
outside the United States and its possessions, and 
‘‘(iii) on the face of such obligation there is a state-
ment that any United States person who holds such 
obligation will be subject to limitations under the 
United States income tax laws.’’. 
(f) EFFECTIVE DATE.—The amendments made by this section 
shall apply to obligations issued after the date which is 2 years 
after the date of the enactment of this Act. 
Applicability. 
26 USC 149 note. 
26 USC 4701. 
26 USC 163. 
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124 STAT. 109 
PUBLIC LAW 111–147—MAR. 18, 2010 
PART II—UNDER REPORTING WITH RESPECT 
TO FOREIGN ASSETS 
SEC. 511. DISCLOSURE OF INFORMATION WITH RESPECT TO FOREIGN 
FINANCIAL ASSETS. 
(a) IN GENERAL.—Subpart A of part III of subchapter A of 
chapter 61 is amended by inserting after section 6038C the following 
new section: 
‘‘SEC. 6038D. INFORMATION WITH RESPECT TO FOREIGN FINANCIAL 
ASSETS. 
‘‘(a) IN GENERAL.—Any individual who, during any taxable 
year, holds any interest in a specified foreign financial asset shall 
attach to such person’s return of tax imposed by subtitle A for 
such taxable year the information described in subsection (c) with 
respect to each such asset if the aggregate value of all such assets 
exceeds $50,000 (or such higher dollar amount as the Secretary 
may prescribe). 
‘‘(b) SPECIFIED FOREIGN FINANCIAL ASSETS.—For purposes of 
this section, the term ‘specified foreign financial asset’ means— 
‘‘(1) any financial account (as defined in section 1471(d)(2)) 
maintained by a foreign financial institution (as defined in 
section 1471(d)(4)), and 
‘‘(2) any of the following assets which are not held in 
an account maintained by a financial institution (as defined 
in section 1471(d)(5))— 
‘‘(A) any stock or security issued by a person other 
than a United States person, 
‘‘(B) any financial instrument or contract held for 
investment that has an issuer or counterparty which is 
other than a United States person, and 
‘‘(C) any interest in a foreign entity (as defined in 
section 1473). 
‘‘(c) REQUIRED INFORMATION.—The information described in this 
subsection with respect to any asset is: 
‘‘(1) In the case of any account, the name and address 
of the financial institution in which such account is maintained 
and the number of such account. 
‘‘(2) In the case of any stock or security, the name and 
address of the issuer and such information as is necessary 
to identify the class or issue of which such stock or security 
is a part. 
‘‘(3) In the case of any other instrument, contract, or 
interest— 
‘‘(A) such information as is necessary to identify such 
instrument, contract, or interest, and 
‘‘(B) the names and addresses of all issuers and 
counterparties with respect to such instrument, contract, 
or interest. 
‘‘(4) The maximum value of the asset during the taxable 
year. 
‘‘(d) PENALTY FOR FAILURE TO DISCLOSE.— 
‘‘(1) IN GENERAL.—If any individual fails to furnish the 
information described in subsection (c) with respect to any 
taxable year at the time and in the manner described in sub-
section (a), such person shall pay a penalty of $10,000. 
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124 STAT. 110 
PUBLIC LAW 111–147—MAR. 18, 2010 
‘‘(2) INCREASE
IN
PENALTY
WHERE
FAILURE
CONTINUES 
AFTER
NOTIFICATION.—If any failure described in paragraph 
(1) continues for more than 90 days after the day on which 
the Secretary mails notice of such failure to the individual, 
such individual shall pay a penalty (in addition to the penalties 
under paragraph (1)) of $10,000 for each 30-day period (or 
fraction thereof) during which such failure continues after the 
expiration of such 90-day period. The penalty imposed under 
this paragraph with respect to any failure shall not exceed 
$50,000. 
‘‘(e) PRESUMPTION THAT VALUE OF SPECIFIED FOREIGN FINAN-
CIAL ASSETS EXCEEDS DOLLAR THRESHOLD.—If— 
‘‘(1) the Secretary determines that an individual has an 
interest in one or more specified foreign financial assets, and 
‘‘(2) such individual does not provide sufficient information 
to demonstrate the aggregate value of such assets, 
then the aggregate value of such assets shall be treated as being 
in excess of $50,000 (or such higher dollar amount as the Secretary 
prescribes for purposes of subsection (a)) for purposes of assessing 
the penalties imposed under this section. 
‘‘(f) APPLICATION TO CERTAIN ENTITIES.—To the extent provided 
by the Secretary in regulations or other guidance, the provisions 
of this section shall apply to any domestic entity which is formed 
or availed of for purposes of holding, directly or indirectly, specified 
foreign financial assets, in the same manner as if such entity 
were an individual. 
‘‘(g) REASONABLE CAUSE EXCEPTION.—No penalty shall be 
imposed by this section on any failure which is shown to be due 
to reasonable cause and not due to willful neglect. The fact that 
a foreign jurisdiction would impose a civil or criminal penalty 
on the taxpayer (or any other person) for disclosing the required 
information is not reasonable cause. 
‘‘(h) REGULATIONS.—The Secretary shall prescribe such regula-
tions or other guidance as may be necessary or appropriate to 
carry out the purposes of this section, including regulations or 
other guidance which provide appropriate exceptions from the 
application of this section in the case of— 
‘‘(1) classes of assets identified by the Secretary, including 
any assets with respect to which the Secretary determines 
that disclosure under this section would be duplicative of other 
disclosures, 
‘‘(2) nonresident aliens, and 
‘‘(3) bona fide residents of any possession of the United 
States.’’. 
(b) CLERICAL AMENDMENT.—The table of sections for subpart 
A of part III of subchapter A of chapter 61 is amended by inserting 
after the item relating to section 6038C the following new item: 
‘‘Sec. 6038D. Information with respect to foreign financial assets.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after the date of the enact-
ment of this Act. 
SEC. 512. PENALTIES FOR UNDERPAYMENTS ATTRIBUTABLE TO 
UNDISCLOSED FOREIGN FINANCIAL ASSETS. 
(a) IN GENERAL.—Section 6662, as amended by this Act, is 
amended— 
26 USC 6662. 
Applicability. 
26 USC 6038D 
note. 
Determination. 
Time period. 
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124 STAT. 111 
PUBLIC LAW 111–147—MAR. 18, 2010 
(1) in subsection (b), by inserting after paragraph (6) the 
following new paragraph: 
‘‘(7) Any undisclosed foreign financial asset understate-
ment.’’, and 
(2) by adding at the end the following new subsection: 
‘‘(j) UNDISCLOSED FOREIGN FINANCIAL ASSET UNDERSTATE-
MENT.— 
‘‘(1) IN GENERAL.—For purposes of this section, the term 
‘undisclosed foreign financial asset understatement’ means, for 
any taxable year, the portion of the understatement for such 
taxable year which is attributable to any transaction involving 
an undisclosed foreign financial asset. 
‘‘(2) UNDISCLOSED FOREIGN FINANCIAL ASSET.—For purposes 
of this subsection, the term ‘undisclosed foreign financial asset’ 
means, with respect to any taxable year, any asset with respect 
to which information was required to be provided under section 
6038, 6038B, 6038D, 6046A, or 6048 for such taxable year 
but was not provided by the taxpayer as required under the 
provisions of those sections. 
‘‘(3) INCREASE
IN
PENALTY
FOR
UNDISCLOSED
FOREIGN 
FINANCIAL ASSET UNDERSTATEMENTS.—In the case of any por-
tion of an underpayment which is attributable to any undis-
closed foreign financial asset understatement, subsection (a) 
shall be applied with respect to such portion by substituting 
‘40 percent’ for ‘20 percent’.’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after the date of the enact-
ment of this Act. 
SEC. 513. MODIFICATION OF STATUTE OF LIMITATIONS FOR SIGNIFI-
CANT OMISSION OF INCOME IN CONNECTION WITH FOR-
EIGN ASSETS. 
(a) EXTENSION OF STATUTE OF LIMITATIONS.— 
(1) IN
GENERAL.—Paragraph (1) of section 6501(e) is 
amended by redesignating subparagraphs (A) and (B) as sub-
paragraphs (B) and (C), respectively, and by inserting before 
subparagraph (B) (as so redesignated) the following new 
subparagraph: 
‘‘(A) GENERAL RULE.—If the taxpayer omits from gross 
income an amount properly includible therein and— 
‘‘(i) such amount is in excess of 25 percent of 
the amount of gross income stated in the return, or 
‘‘(ii) such amount— 
‘‘(I) is attributable to one or more assets with 
respect to which information is required to be 
reported under section 6038D (or would be so 
required if such section were applied without 
regard to the dollar threshold specified in sub-
section (a) thereof and without regard to any excep-
tions provided pursuant to subsection (h)(1) 
thereof), and 
‘‘(II) is in excess of $5,000, 
the tax may be assessed, or a proceeding in court for 
collection of such tax may be begun without assessment, 
at any time within 6 years after the return was filed.’’. 
(2) CONFORMING AMENDMENTS.— 
Time period. 
26 USC 6501. 
Applicability. 
26 USC 6662 
note. 
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124 STAT. 112 
PUBLIC LAW 111–147—MAR. 18, 2010 
(A) Subparagraph (B) of section 6501(e)(1), as redesig-
nated by paragraph (1), is amended by striking all that 
precedes clause (i) and inserting the following: 
‘‘(B) DETERMINATION OF GROSS INCOME.—For purposes 
of subparagraph (A)—’’. 
(B) Paragraph (2) of section 6229(c) is amended by 
striking ‘‘which is in excess of 25 percent of the amount 
of gross income stated in its return’’ and inserting ‘‘and 
such amount is described in clause (i) or (ii) of section 
6501(e)(1)(A)’’. 
(b) ADDITIONAL REPORTS SUBJECT TO EXTENDED PERIOD.—Para-
graph (8) of section 6501(c) is amended— 
(1) by inserting ‘‘pursuant to an election under section 
1295(b) or’’ before ‘‘under section 6038’’, 
(2) by inserting ‘‘1298(f),’’ before ‘‘6038’’, and 
(3) by inserting ‘‘6038D,’’ after ‘‘6038B,’’. 
(c) CLARIFICATIONS RELATED TO FAILURE TO DISCLOSE FOREIGN 
TRANSFERS.—Paragraph (8) of section 6501(c) is amended by 
striking ‘‘event’’ and inserting ‘‘tax return, event,’’. 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to— 
(1) returns filed after the date of the enactment of this 
Act; and 
(2) returns filed on or before such date if the period speci-
fied in section 6501 of the Internal Revenue Code of 1986 
(determined without regard to such amendments) for assess-
ment of such taxes has not expired as of such date. 
PART III—OTHER DISCLOSURE PROVISIONS 
SEC. 521. REPORTING OF ACTIVITIES WITH RESPECT TO PASSIVE FOR-
EIGN INVESTMENT COMPANIES. 
(a) IN GENERAL.—Section 1298 is amended by redesignating 
subsection (f) as subsection (g) and by inserting after subsection 
(e) the following new subsection: 
‘‘(f) REPORTING REQUIREMENT.—Except as otherwise provided 
by the Secretary, each United States person who is a shareholder 
of a passive foreign investment company shall file an annual report 
containing such information as the Secretary may require.’’. 
(b) CONFORMING AMENDMENT.—Subsection (e) of section 1291 
is amended by striking ‘‘, (d), and (f)’’ and inserting ‘‘and (d)’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
take effect on the date of the enactment of this Act. 
SEC. 522. SECRETARY PERMITTED TO REQUIRE FINANCIAL INSTITU-
TIONS TO FILE CERTAIN RETURNS RELATED TO WITH-
HOLDING ON FOREIGN TRANSFERS ELECTRONICALLY. 
(a) IN GENERAL.—Subsection (e) of section 6011 is amended 
by adding at the end the following new paragraph: 
‘‘(4) SPECIAL
RULE
FOR
RETURNS
FILED
BY
FINANCIAL 
INSTITUTIONS
WITH
RESPECT
TO
WITHHOLDING
ON
FOREIGN 
TRANSFERS.—The numerical limitation under paragraph (2)(A) 
shall not apply to any return filed by a financial institution 
(as defined in section 1471(d)(5)) with respect to tax for which 
such institution is made liable under section 1461 or 1474(a).’’. 
26 USC 1291 
note. 
Applicability. 
26 USC 6229 
note. 
26 USC 6501. 
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124 STAT. 113 
PUBLIC LAW 111–147—MAR. 18, 2010 
(b) CONFORMING AMENDMENT.—Subsection (c) of section 6724 
is amended by inserting ‘‘or with respect to a return described 
in section 6011(e)(4)’’ before the end period. 
(c) EFFECTIVE DATE.—The amendment made by this section 
shall apply to returns the due date for which (determined without 
regard to extensions) is after the date of the enactment of this 
Act. 
PART IV—PROVISIONS RELATED TO FOREIGN 
TRUSTS 
SEC. 531. CLARIFICATIONS WITH RESPECT TO FOREIGN TRUSTS 
WHICH ARE TREATED AS HAVING A UNITED STATES BENE-
FICIARY. 
(a) IN GENERAL.—Paragraph (1) of section 679(c) is amended 
by adding at the end the following: 
‘‘For purposes of subparagraph (A), an amount shall be treated 
as accumulated for the benefit of a United States person even 
if the United States person’s interest in the trust is contingent 
on a future event.’’. 
(b) CLARIFICATION REGARDING DISCRETION TO IDENTIFY BENE-
FICIARIES.—Subsection (c) of section 679 is amended by adding 
at the end the following new paragraph: 
‘‘(4) SPECIAL
RULE
IN
CASE
OF
DISCRETION
TO
IDENTIFY 
BENEFICIARIES.—For purposes of paragraph (1)(A), if any person 
has the discretion (by authority given in the trust agreement, 
by power of appointment, or otherwise) of making a distribution 
from the trust to, or for the benefit of, any person, such trust 
shall be treated as having a beneficiary who is a United States 
person unless— 
‘‘(A) the terms of the trust specifically identify the 
class of persons to whom such distributions may be made, 
and 
‘‘(B) none of those persons are United States persons 
during the taxable year.’’. 
(c) CLARIFICATION THAT CERTAIN AGREEMENTS
AND UNDER-
STANDINGS ARE TERMS OF THE TRUST.—Subsection (c) of section 
679, as amended by subsection (b), is amended by adding at the 
end the following new paragraph: 
‘‘(5) CERTAIN AGREEMENTS AND UNDERSTANDINGS TREATED 
AS TERMS OF THE TRUST.—For purposes of paragraph (1)(A), 
if any United States person who directly or indirectly transfers 
property to the trust is directly or indirectly involved in any 
agreement or understanding (whether written, oral, or other-
wise) that may result in the income or corpus of the trust 
being paid or accumulated to or for the benefit of a United 
States person, such agreement or understanding shall be 
treated as a term of the trust.’’. 
SEC. 532. PRESUMPTION THAT FOREIGN TRUST HAS UNITED STATES 
BENEFICIARY. 
(a) IN GENERAL.—Section 679 is amended by redesignating 
subsection (d) as subsection (e) and inserting after subsection (c) 
the following new subsection: 
‘‘(d) PRESUMPTION THAT FOREIGN TRUST HAS UNITED STATES 
BENEFICIARY.—If a United States person directly or indirectly trans-
fers property to a foreign trust (other than a trust described in 
26 USC 6011 
note. 
26 USC 6724. 
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124 STAT. 114 
PUBLIC LAW 111–147—MAR. 18, 2010 
section 6048(a)(3)(B)(ii)), the Secretary may treat such trust as 
having a United States beneficiary for purposes of applying this 
section to such transfer unless such person— 
‘‘(1) submits such information to the Secretary as the Sec-
retary may require with respect to such transfer, and 
‘‘(2) demonstrates to the satisfaction of the Secretary that 
such trust satisfies the requirements of subparagraphs (A) and 
(B) of subsection (c)(1).’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to transfers of property after the date of the enactment 
of this Act. 
SEC. 533. UNCOMPENSATED USE OF TRUST PROPERTY. 
(a) IN GENERAL.—Paragraph (1) of section 643(i) is amended— 
(1) by striking ‘‘directly or indirectly to’’ and inserting ‘‘(or 
permits the use of any other trust property) directly or 
indirectly to or by’’, and 
(2) by inserting ‘‘(or the fair market value of the use of 
such property)’’ after ‘‘the amount of such loan’’. 
(b) EXCEPTION FOR COMPENSATED USE.—Paragraph (2) of sec-
tion 643(i) is amended by adding at the end the following new 
subparagraph: 
‘‘(E) EXCEPTION FOR COMPENSATED USE OF PROPERTY.— 
In the case of the use of any trust property other than 
a loan of cash or marketable securities, paragraph (1) shall 
not apply to the extent that the trust is paid the fair 
market value of such use within a reasonable period of 
time of such use.’’. 
(c) APPLICATION TO GRANTOR TRUSTS.—Subsection (c) of section 
679, as amended by this Act, is amended by adding at the end 
the following new paragraph: 
‘‘(6) UNCOMPENSATED
USE
OF
TRUST
PROPERTY
TREATED 
AS
A
PAYMENT.—For purposes of this subsection, a loan of 
cash or marketable securities (or the use of any other trust 
property) directly or indirectly to or by any United States 
person (whether or not a beneficiary under the terms of the 
trust) shall be treated as paid or accumulated for the benefit 
of a United States person. The preceding sentence shall not 
apply to the extent that the United States person repays the 
loan at a market rate of interest (or pays the fair market 
value of the use of such property) within a reasonable period 
of time.’’. 
(d) CONFORMING AMENDMENTS.—Paragraph (3) of section 643(i) 
is amended— 
(1) by inserting ‘‘(or use of property)’’ after ‘‘If any loan’’, 
(2) by inserting ‘‘or the return of such property’’ before 
‘‘shall be disregarded’’, and 
(3) by striking ‘‘REGARDING LOAN PRINCIPAL’’ in the heading 
thereof. 
(e) EFFECTIVE DATE.—The amendments made by this section 
shall apply to loans made, and uses of property, after the date 
of the enactment of this Act. 
SEC. 534. REPORTING REQUIREMENT OF UNITED STATES OWNERS OF 
FOREIGN TRUSTS. 
(a) IN GENERAL.—Paragraph (1) of section 6048(b) is amended 
by inserting ‘‘shall submit such information as the Secretary may 
Applicability. 
26 USC 643 note. 
26 USC 643. 
Applicability. 
26 USC 679 note. 
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124 STAT. 115 
PUBLIC LAW 111–147—MAR. 18, 2010 
prescribe with respect to such trust for such year and’’ before 
‘‘shall be responsible to ensure’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to taxable years beginning after the date of the enact-
ment of this Act. 
SEC. 535. MINIMUM PENALTY WITH RESPECT TO FAILURE TO REPORT 
ON CERTAIN FOREIGN TRUSTS. 
(a) IN GENERAL.—Subsection (a) of section 6677 is amended— 
(1) by inserting ‘‘the greater of $10,000 or’’ before ‘‘35 
percent’’, and 
(2) by striking the last sentence and inserting the following: 
‘‘At such time as the gross reportable amount with respect 
to any failure can be determined by the Secretary, any subse-
quent penalty imposed under this subsection with respect to 
such failure shall be reduced as necessary to assure that the 
aggregate amount of such penalties do not exceed the gross 
reportable amount (and to the extent that such aggregate 
amount already exceeds the gross reportable amount the Sec-
retary shall refund such excess to the taxpayer).’’ 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to notices and returns required to be filed after 
December 31, 2009. 
PART V—SUBSTITUTE DIVIDENDS AND DIVI-
DEND EQUIVALENT PAYMENTS RECEIVED 
BY FOREIGN PERSONS TREATED AS DIVI-
DENDS 
SEC. 541. SUBSTITUTE DIVIDENDS AND DIVIDEND EQUIVALENT PAY-
MENTS RECEIVED BY FOREIGN PERSONS TREATED AS 
DIVIDENDS. 
(a) IN GENERAL.—Section 871 is amended by redesignating 
subsection (l) as subsection (m) and by inserting after subsection 
(k) the following new subsection: 
‘‘(l) TREATMENT OF DIVIDEND EQUIVALENT PAYMENTS.— 
‘‘(1) IN GENERAL.—For purposes of subsection (a), sections 
881 and 4948(a), and chapters 3 and 4, a dividend equivalent 
shall be treated as a dividend from sources within the United 
States. 
‘‘(2) DIVIDEND
EQUIVALENT.—For purposes of this sub-
section, the term ‘dividend equivalent’ means— 
‘‘(A) any substitute dividend made pursuant to a securi-
ties lending or a sale-repurchase transaction that (directly 
or indirectly) is contingent upon, or determined by reference 
to, the payment of a dividend from sources within the 
United States, 
‘‘(B) any payment made pursuant to a specified notional 
principal contract that (directly or indirectly) is contingent 
upon, or determined by reference to, the payment of a 
dividend from sources within the United States, and 
‘‘(C) any other payment determined by the Secretary 
to be substantially similar to a payment described in 
subparagraph (A) or (B). 
Definitions. 
Applicability. 
26 USC 6677 
note. 
26 USC 6677. 
Applicability. 
26 USC 6048 
note. 
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124 STAT. 116 
PUBLIC LAW 111–147—MAR. 18, 2010 
‘‘(3) SPECIFIED NOTIONAL PRINCIPAL CONTRACT.—For pur-
poses of this subsection, the term ‘specified notional principal 
contract’ means— 
‘‘(A) any notional principal contract if— 
‘‘(i) in connection with entering into such contract, 
any long party to the contract transfers the underlying 
security to any short party to the contract, 
‘‘(ii) in connection with the termination of such 
contract, any short party to the contract transfers the 
underlying security to any long party to the contract, 
‘‘(iii) the underlying security is not readily tradable 
on an established securities market, 
‘‘(iv) in connection with entering into such contract, 
the underlying security is posted as collateral by any 
short party to the contract with any long party to 
the contract, or 
‘‘(v) such contract is identified by the Secretary 
as a specified notional principal contract, 
‘‘(B) in the case of payments made after the date which 
is 2 years after the date of the enactment of this subsection, 
any notional principal contract unless the Secretary deter-
mines that such contract is of a type which does not have 
the potential for tax avoidance. 
‘‘(4) DEFINITIONS.—For purposes of paragraph (3)(A)— 
‘‘(A) LONG PARTY.—The term ‘long party’ means, with 
respect to any underlying security of any notional principal 
contract, any party to the contract which is entitled to 
receive any payment pursuant to such contract which is 
contingent upon, or determined by reference to, the pay-
ment of a dividend from sources within the United States 
with respect to such underlying security. 
‘‘(B) SHORT PARTY.—The term ‘short party’ means, with 
respect to any underlying security of any notional principal 
contract, any party to the contract which is not a long 
party with respect to such underlying security. 
‘‘(C) UNDERLYING
SECURITY.—The term ‘underlying 
security’ means, with respect to any notional principal con-
tract, the security with respect to which the dividend 
referred to in paragraph (2)(B) is paid. For purposes of 
this paragraph, any index or fixed basket of securities 
shall be treated as a single security. 
‘‘(5) PAYMENTS DETERMINED ON GROSS BASIS.—For purposes 
of this subsection, the term ‘payment’ includes any gross 
amount which is used in computing any net amount which 
is transferred to or from the taxpayer. 
‘‘(6) PREVENTION OF OVER-WITHHOLDING.—In the case of 
any chain of dividend equivalents one or more of which is 
subject to tax under subsection (a) or section 881, the Secretary 
may reduce such tax, but only to the extent that the taxpayer 
can establish that such tax has been paid with respect to 
another dividend equivalent in such chain, or is not otherwise 
due, or as the Secretary determines is appropriate to address 
the role of financial intermediaries in such chain. For purposes 
of this paragraph, a dividend shall be treated as a dividend 
equivalent. 
‘‘(7) COORDINATION WITH CHAPTERS 3 AND 4.—For purposes 
of chapters 3 and 4, each person that is a party to any contract 
Contracts. 
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124 STAT. 117 
PUBLIC LAW 111–147—MAR. 18, 2010 
or other arrangement that provides for the payment of a divi-
dend equivalent shall be treated as having control of such 
payment.’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to payments made on or after the date that is 180 
days after the date of the enactment of this Act. 
Subtitle B—Delay in Application of 
Worldwide Allocation of Interest 
SEC. 551. DELAY IN APPLICATION OF WORLDWIDE ALLOCATION OF 
INTEREST. 
(a) IN GENERAL.—Paragraphs (5)(D) and (6) of section 864(f) 
are each amended by striking ‘‘December 31, 2017’’ and inserting 
‘‘December 31, 2020’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on the date of the enactment of this Act. 
Subtitle C—Budgetary Provisions 
SEC. 561. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES. 
Notwithstanding section 6655 of the Internal Revenue Code 
of 1986, in the case of a corporation with assets of not less than 
$1,000,000,000 (determined as of the end of the preceding taxable 
year)— 
(1) the percentage under paragraph (1) of section 202(b) 
of the Corporate Estimated Tax Shift Act of 2009 in effect 
on the date of the enactment of this Act is increased by 23 
percentage points, 
(2) the amount of any required installment of corporate 
estimated tax which is otherwise due in July, August, or Sep-
tember of 2015 shall be 121.5 percent of such amount, 
(3) the amount of any required installment of corporate 
estimated tax which is otherwise due in July, August, or Sep-
tember of 2019 shall be 106.5 percent of such amount, and 
(4) the amount of the next required installment after an 
installment referred to in paragraph (2) or (3) shall be appro-
priately reduced to reflect the amount of the increase by reason 
of such paragraph. 
SEC. 562. PAYGO COMPLIANCE. 
The budgetary effects of this Act, for purposes of complying 
with the Statutory Pay-As-You-Go-Act of 2010, shall be determined 
by reference to the latest statement titled ‘‘Budgetary Effects of 
PAYGO Legislation’’ for this Act, jointly submitted for printing 
in the Congressional Record by the Chairman of the House and 
Senate Budget Committees, provided that such statement has been 
26 USC 6655 
note. 
26 USC 864 note. 
26 USC 864. 
Applicability. 
26 USC 871 note. 
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124 STAT. 118 
PUBLIC LAW 111–147—MAR. 18, 2010 
LEGISLATIVE HISTORY—H.R. 2847: 
HOUSE REPORTS: No. 111–149 (Comm. on Appropriations). 
SENATE REPORTS: No. 111–34 (Comm. on Appropriations). 
CONGRESSIONAL RECORD: 
Vol. 155 (2009): June 16–18, considered and passed House. 
Oct. 7, 8, 13, Nov. 5, considered and passed Senate, amended. 
Dec. 16, House concurred in Senate amendment with an 
amendment. 
Vol. 156 (2010): Feb. 11, 22–24, Senate considered and concurred in House 
amendment with an amendment. 
Mar. 4, House concurred in Senate amendment with an 
amendment. 
Mar. 11, 15, 17, Senate considered and concurred in House 
amendment. 
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2010): 
Mar. 18, Presidential remarks. 
submitted prior to the vote on passage in the House acting first 
on this conference report or amendments between the Houses. 
Approved March 18, 2010. 
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