[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3548 Engrossed Amendment Senate (EAS)]

                  In the Senate of the United States,

                                                      November 4, 2009.
    Resolved, That the bill from the House of Representatives (H.R. 
3548) entitled ``An Act to amend the Supplemental Appropriations Act, 
2008 to provide for the temporary availability of certain additional 
emergency unemployment compensation, and for other purposes.'', do pass 
with the following

                               AMENDMENT:

            Strike all after the enacting clause and insert the 
      following:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Worker, Homeownership, and Business 
Assistance Act of 2009''.

SEC. 2. REVISIONS TO SECOND-TIER BENEFITS.

    (a) In General.--Section 4002(c) of the Supplemental Appropriations 
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``If'' and all that follows through 
                ``paragraph (2))'' and inserting ``At the time that the 
                amount established in an individual's account under 
                subsection (b)(1) is exhausted'';
                    (B) in subparagraph (A), by striking ``50 percent'' 
                and inserting ``54 percent''; and
                    (C) in subparagraph (B), by striking ``13'' and 
                inserting ``14'';
            (2) by striking paragraph (2); and
            (3) by redesignating paragraph (3) as paragraph (2).
    (b) Effective Date.--The amendments made by this section shall 
apply as if included in the enactment of the Supplemental 
Appropriations Act, 2008, except that no amount shall be payable by 
virtue of such amendments with respect to any week of unemployment 
commencing before the date of the enactment of this Act.

SEC. 3. THIRD-TIER EMERGENCY UNEMPLOYMENT COMPENSATION.

    (a) In General.--Section 4002 of the Supplemental Appropriations 
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended by 
adding at the end the following new subsection:
    ``(d) Third-tier Emergency Unemployment Compensation.--
            ``(1) In general.--If, at the time that the amount added to 
        an individual's account under subsection (c)(1) (hereinafter 
        `second-tier emergency unemployment compensation') is exhausted 
        or at any time thereafter, such individual's State is in an 
        extended benefit period (as determined under paragraph (2)), 
        such account shall be further augmented by an amount 
        (hereinafter `third-tier emergency unemployment compensation') 
        equal to the lesser of--
                    ``(A) 50 percent of the total amount of regular 
                compensation (including dependents' allowances) payable 
                to the individual during the individual's benefit year 
                under the State law; or
                    ``(B) 13 times the individual's average weekly 
                benefit amount (as determined under subsection (b)(2)) 
                for the benefit year.
            ``(2) Extended benefit period.--For purposes of paragraph 
        (1), a State shall be considered to be in an extended benefit 
        period, as of any given time, if--
                    ``(A) such a period would then be in effect for 
                such State under such Act if section 203(d) of such 
                Act--
                            ``(i) were applied by substituting `4' for 
                        `5' each place it appears; and
                            ``(ii) did not include the requirement 
                        under paragraph (1)(A) thereof; or
                    ``(B) such a period would then be in effect for 
                such State under such Act if--
                            ``(i) section 203(f) of such Act were 
                        applied to such State (regardless of whether 
                        the State by law had provided for such 
                        application); and
                            ``(ii) such section 203(f)--
                                    ``(I) were applied by substituting 
                                `6.0' for `6.5' in paragraph (1)(A)(i) 
                                thereof; and
                                    ``(II) did not include the 
                                requirement under paragraph (1)(A)(ii) 
                                thereof.
            ``(3) Limitation.--The account of an individual may be 
        augmented not more than once under this subsection.''.
    (b) Conforming Amendment to Non-augmentation Rule.--Section 
4007(b)(2) of the Supplemental Appropriations Act, 2008 (Public Law 
110-252; 26 U.S.C. 3304 note) is amended--
            (1) by striking ``then section 4002(c)'' and inserting 
        ``then subsections (c) and (d) of section 4002''; and
            (2) by striking ``paragraph (2) of such section)'' and 
        inserting ``paragraph (2) of such subsection (c) or (d) (as the 
        case may be))''.
    (c) Effective Date.--The amendments made by this section shall 
apply as if included in the enactment of the Supplemental 
Appropriations Act, 2008, except that no amount shall be payable by 
virtue of such amendments with respect to any week of unemployment 
commencing before the date of the enactment of this Act.

SEC. 4. FOURTH-TIER EMERGENCY UNEMPLOYMENT COMPENSATION.

    (a) In General.--Section 4002 of the Supplemental Appropriations 
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note), as amended by 
section 3(a), is amended by adding at the end the following new 
subsection:
    ``(e) Fourth-tier Emergency Unemployment Compensation.--
            ``(1) In general.--If, at the time that the amount added to 
        an individual's account under subsection (d)(1) (third-tier 
        emergency unemployment compensation) is exhausted or at any 
        time thereafter, such individual's State is in an extended 
        benefit period (as determined under paragraph (2)), such 
        account shall be further augmented by an amount (hereinafter 
        `fourth-tier emergency unemployment compensation') equal to the 
        lesser of--
                    ``(A) 24 percent of the total amount of regular 
                compensation (including dependents' allowances) payable 
                to the individual during the individual's benefit year 
                under the State law; or
                    ``(B) 6 times the individual's average weekly 
                benefit amount (as determined under subsection (b)(2)) 
                for the benefit year.
            ``(2) Extended benefit period.--For purposes of paragraph 
        (1), a State shall be considered to be in an extended benefit 
        period, as of any given time, if--
                    ``(A) such a period would then be in effect for 
                such State under such Act if section 203(d) of such 
                Act--
                            ``(i) were applied by substituting `6' for 
                        `5' each place it appears; and
                            ``(ii) did not include the requirement 
                        under paragraph (1)(A) thereof; or
                    ``(B) such a period would then be in effect for 
                such State under such Act if--
                            ``(i) section 203(f) of such Act were 
                        applied to such State (regardless of whether 
                        the State by law had provided for such 
                        application); and
                            ``(ii) such section 203(f)--
                                    ``(I) were applied by substituting 
                                `8.5' for `6.5' in paragraph (1)(A)(i) 
                                thereof; and
                                    ``(II) did not include the 
                                requirement under paragraph (1)(A)(ii) 
                                thereof.
            ``(3) Limitation.--The account of an individual may be 
        augmented not more than once under this subsection.''.
    (b) Conforming Amendment to Non-augmentation Rule.--Section 
4007(b)(2) of the Supplemental Appropriations Act, 2008 (Public Law 
110-252; 26 U.S.C. 3304 note), as amended by section 3(b), is amended--
            (1) by striking ``and (d)'' and inserting ``, (d), and (e) 
        of section 4002''; and
            (2) by striking ``or (d)'' and inserting ``, (d), or (e) 
        (as the case may be))''.
    (c) Effective Date.--The amendments made by this section shall 
apply as if included in the enactment of the Supplemental 
Appropriations Act, 2008, except that no amount shall be payable by 
virtue of such amendments with respect to any week of unemployment 
commencing before the date of the enactment of this Act.

SEC. 5. COORDINATION.

    Section 4002 of the Supplemental Appropriations Act, 2008 (Public 
Law 110-252; 26 U.S.C. 3304 note), as amended by section 4, is amended 
by adding at the end the following new subsection:
    ``(f) Coordination Rules.--
            ``(1) Coordination with extended compensation.--
        Notwithstanding an election under section 4001(e) by a State to 
        provide for the payment of emergency unemployment compensation 
        prior to extended compensation, such State may pay extended 
        compensation to an otherwise eligible individual prior to any 
        emergency unemployment compensation under subsection (c), (d), 
        or (e) (by reason of the amendments made by sections 2, 3, and 
        4 of the Worker, Homeownership, and Business Assistance Act of 
        2009), if such individual claimed extended compensation for at 
        least 1 week of unemployment after the exhaustion of emergency 
        unemployment compensation under subsection (b) (as such 
        subsection was in effect on the day before the date of the 
        enactment of this subsection).
            ``(2) Coordination with tiers ii, iii, and iv.--If a State 
        determines that implementation of the increased entitlement to 
        second-tier emergency unemployment compensation by reason of 
        the amendments made by section 2 of the Worker, Homeownership, 
        and Business Assistance Act of 2009 would unduly delay the 
        prompt payment of emergency unemployment compensation under 
        this title by reason of the amendments made by such Act, such 
        State may elect to pay third-tier emergency unemployment 
        compensation prior to the payment of such increased second-tier 
        emergency unemployment compensation until such time as such 
        State determines that such increased second-tier emergency 
        unemployment compensation may be paid without such undue delay. 
        If a State makes the election under the preceding sentence, 
        then, for purposes of determining whether an account may be 
        augmented for fourth-tier emergency unemployment compensation 
        under subsection (e), such State shall treat the date of 
        exhaustion of such increased second-tier emergency unemployment 
        compensation as the date of exhaustion of third-tier emergency 
        unemployment compensation, if such date is later than the date 
        of exhaustion of the third-tier emergency unemployment 
        compensation.''.

SEC. 6. TRANSFER OF FUNDS.

    Section 4004(e)(1) of the Supplemental Appropriations Act, 2008 
(Public Law 110-252; 26 U.S.C. 3304 note) is amended by striking 
``Act;'' and inserting ``Act and sections 2, 3, and 4 of the Worker, 
Homeownership, and Business Assistance Act of 2009;''.

SEC. 7. EXPANSION OF MODERNIZATION GRANTS FOR UNEMPLOYMENT RESULTING 
              FROM COMPELLING FAMILY REASON.

    (a) In General.--Clause (i) of section 903(f)(3)(B) of the Social 
Security Act (42 U.S.C. 1103(f)(3)(B)) is amended to read as follows:
                            ``(i) One or both of the following offenses 
                        as selected by the State, but in making such 
                        selection, the resulting change in the State 
                        law shall not supercede any other provision of 
                        law relating to unemployment insurance to the 
                        extent that such other provision provides 
                        broader access to unemployment benefits for 
                        victims of such selected offense or offenses:
                                    ``(I) Domestic violence, verified 
                                by such reasonable and confidential 
                                documentation as the State law may 
                                require, which causes the individual 
                                reasonably to believe that such 
                                individual's continued employment would 
                                jeopardize the safety of the individual 
                                or of any member of the individual's 
                                immediate family (as defined by the 
                                Secretary of Labor); and
                                    ``(II) Sexual assault, verified by 
                                such reasonable and confidential 
                                documentation as the State law may 
                                require, which causes the individual 
                                reasonably to believe that such 
                                individual's continued employment would 
                                jeopardize the safety of the individual 
                                or of any member of the individual's 
                                immediate family (as defined by the 
                                Secretary of Labor).''.
    (b) Effective Date.--The amendment made by this section shall apply 
with respect to State applications submitted on and after January 1, 
2010.

SEC. 8. TREATMENT OF ADDITIONAL REGULAR COMPENSATION.

    The monthly equivalent of any additional compensation paid by 
reason of section 2002 of the Assistance for Unemployed Workers and 
Struggling Families Act, as contained in Public Law 111-5 (26 U.S.C. 
3304 note; 123 Stat. 438) shall be disregarded after the date of the 
enactment of this Act in considering the amount of income and assets of 
an individual for purposes of determining such individual's eligibility 
for, or amount of, benefits under the Supplemental Nutrition Assistance 
Program (SNAP).

SEC. 9. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER THE RAILROAD 
              UNEMPLOYMENT INSURANCE ACT.

    (a) Benefits.--Section 2(c)(2)(D) of the Railroad Unemployment 
Insurance Act, as added by section 2006 of the American Recovery and 
Reinvestment Act of 2009 (Public Law 111-5), is amended--
            (1) in clause (iii)--
                    (A) by striking ``June 30, 2009'' and inserting 
                ``June 30, 2010''; and
                    (B) by striking ``December 31, 2009'' and inserting 
                ``December 31, 2010''; and
            (2) by adding at the end of clause (iv) the following: ``In 
        addition to the amount appropriated by the preceding sentence, 
        out of any funds in the Treasury not otherwise appropriated, 
        there are appropriated $175,000,000 to cover the cost of 
        additional extended unemployment benefits provided under this 
        subparagraph, to remain available until expended.''.
    (b) Administrative Expenses.--Section 2006 of division B of the 
American Recovery and Reinvestment Act of 2009 (Public Law 111-5; 123 
Stat. 445) is amended by adding at the end of subsection (b) the 
following: ``In addition to funds appropriated by the preceding 
sentence, out of any funds in the Treasury not otherwise appropriated, 
there are appropriated to the Railroad Retirement Board $807,000 to 
cover the administrative expenses associated with the payment of 
additional extended unemployment benefits under section 2(c)(2)(D) of 
the Railroad Unemployment Insurance Act, to remain available until 
expended.''.

SEC. 10. 0.2 PERCENT FUTA SURTAX.

    (a) In General.--Section 3301 of the Internal Revenue Code of 1986 
(relating to rate of tax) is amended--
            (1) by striking ``through 2009'' in paragraph (1) and 
        inserting ``through 2010 and the first 6 months of calendar 
        year 2011'',
            (2) by striking ``calendar year 2010'' in paragraph (2) and 
        inserting ``the remainder of calendar year 2011'', and
            (3) by inserting ``(or portion of the calendar year)'' 
        after ``during the calendar year''.
    (b) Effective Date.--The amendments made by this section shall 
apply to wages paid after December 31, 2009.

SEC. 11. EXTENSION AND MODIFICATION OF FIRST-TIME HOMEBUYER TAX CREDIT.

    (a) Extension of Application Period.--
            (1) In general.--Subsection (h) of section 36 of the 
        Internal Revenue Code of 1986 is amended--
                    (A) by striking ``December 1, 2009'' and inserting 
                ``May 1, 2010'',
                    (B) by striking ``Section.--This section'' and 
                inserting ``Section.--
            ``(1) In general.--This section'', and
                    (C) by adding at the end the following new 
                paragraph:
            ``(2) Exception in case of binding contract.--In the case 
        of any taxpayer who enters into a written binding contract 
        before May 1, 2010, to close on the purchase of a principal 
        residence before July 1, 2010, paragraph (1) shall be applied 
        by substituting `July 1, 2010' for `May 1, 2010'.''.
            (2) Waiver of recapture.--
                    (A) In general.--Subparagraph (D) of section 
                36(f)(4) of such Code is amended by striking ``, and 
                before December 1, 2009''.
                    (B) Conforming amendment.--The heading of such 
                subparagraph (D) is amended by inserting ``and 2010'' 
                after ``2009''.
            (3) Election to treat purchase in prior year.--Subsection 
        (g) of section 36 of such Code is amended to read as follows:
    ``(g) Election To Treat Purchase in Prior Year.--In the case of a 
purchase of a principal residence after December 31, 2008, a taxpayer 
may elect to treat such purchase as made on December 31 of the calendar 
year preceding such purchase for purposes of this section (other than 
subsections (c), (f)(4)(D), and (h)).''.
    (b) Special Rule for Long-time Residents of Same Principal 
Residence.--Subsection (c) of section 36 of the Internal Revenue Code 
of 1986 is amended by adding at the end the following new paragraph:
            ``(6) Exception for long-time residents of same principal 
        residence.--In the case of an individual (and, if married, such 
        individual's spouse) who has owned and used the same residence 
        as such individual's principal residence for any 5-consecutive-
        year period during the 8-year period ending on the date of the 
        purchase of a subsequent principal residence, such individual 
        shall be treated as a first-time homebuyer for purposes of this 
        section with respect to the purchase of such subsequent 
        residence.''.
    (c) Modification of Dollar and Income Limitations.--
            (1) Dollar limitation.--Subsection (b)(1) of section 36 of 
        the Internal Revenue Code of 1986 is amended by adding at the 
        end the following new subparagraph:
                    ``(D) Special rule for long-time residents of same 
                principal residence.--In the case of a taxpayer to whom 
                a credit under subsection (a) is allowed by reason of 
                subsection (c)(6), subparagraphs (A), (B), and (C) 
                shall be applied by substituting `$6,500' for `$8,000' 
                and `$3,250' for `$4,000'.''.
            (2) Income limitation.--Subsection (b)(2)(A)(i)(II) of 
        section 36 of such Code is amended by striking ``$75,000 
        ($150,000'' and inserting ``$125,000 ($225,000''.
    (d) Limitation on Purchase Price of Residence.--Subsection (b) of 
section 36 of the Internal Revenue Code of 1986 is amended by adding at 
the end the following new paragraph:
            ``(3) Limitation based on purchase price.--No credit shall 
        be allowed under subsection (a) for the purchase of any 
        residence if the purchase price of such residence exceeds 
        $800,000.''.
    (e) Waiver of Recapture of First-time Homebuyer Credit for 
Individuals on Qualified Official Extended Duty.--Paragraph (4) of 
section 36(f) of the Internal Revenue Code of 1986 is amended by adding 
at the end the following new subparagraph:
                    ``(E) Special rule for members of the armed forces, 
                etc.--
                            ``(i) In general.--In the case of the 
                        disposition of a principal residence by an 
                        individual (or a cessation referred to in 
                        paragraph (2)) after December 31, 2008, in 
                        connection with Government orders received by 
                        such individual, or such individual's spouse, 
                        for qualified official extended duty service--
                                    ``(I) paragraph (2) and subsection 
                                (d)(2) shall not apply to such 
                                disposition (or cessation), and
                                    ``(II) if such residence was 
                                acquired before January 1, 2009, 
                                paragraph (1) shall not apply to the 
                                taxable year in which such disposition 
                                (or cessation) occurs or any subsequent 
                                taxable year.
                            ``(ii) Qualified official extended duty 
                        service.--For purposes of this section, the 
                        term `qualified official extended duty service' 
                        means service on qualified official extended 
                        duty as--
                                    ``(I) a member of the uniformed 
                                services,
                                    ``(II) a member of the Foreign 
                                Service of the United States, or
                                    ``(III) an employee of the 
                                intelligence community.
                            ``(iii) Definitions.--Any term used in this 
                        subparagraph which is also used in paragraph 
                        (9) of section 121(d) shall have the same 
                        meaning as when used in such paragraph.''.
    (f) Extension of First-time Homebuyer Credit for Individuals on 
Qualified Official Extended Duty Outside the United States.--
            (1) In general.--Subsection (h) of section 36 of the 
        Internal Revenue Code of 1986, as amended by subsection (a), is 
        amended by adding at the end the following:
            ``(3) Special rule for individuals on qualified official 
        extended duty outside the united states.--In the case of any 
        individual who serves on qualified official extended duty 
        service (as defined in section 121(d)(9)(C)(i)) outside the 
        United States for at least 90 days during the period beginning 
        after December 31, 2008, and ending before May 1, 2010, and, if 
        married, such individual's spouse--
                    ``(A) paragraphs (1) and (2) shall each be applied 
                by substituting `May 1, 2011' for `May 1, 2010', and
                    ``(B) paragraph (2) shall be applied by 
                substituting `July 1, 2011' for `July 1, 2010'.''.
    (g) Dependents Ineligible for Credit.--Subsection (d) of section 36 
of the Internal Revenue Code of 1986 is amended by striking ``or'' at 
the end of paragraph (1), by striking the period at the end of 
paragraph (2) and inserting ``, or'', and by adding at the end the 
following new paragraph:
            ``(3) a deduction under section 151 with respect to such 
        taxpayer is allowable to another taxpayer for such taxable 
        year.''.
    (h) IRS Mathematical Error Authority.--Paragraph (2) of section 
6213(g) of the Internal Revenue Code of 1986 is amended--
            (1) by striking ``and'' at the end of subparagraph (M),
            (2) by striking the period at the end of subparagraph (N) 
        and inserting ``, and'', and
            (3) by inserting after subparagraph (N) the following new 
        subparagraph:
                    ``(O) an omission of any increase required under 
                section 36(f) with respect to the recapture of a credit 
                allowed under section 36.''.
    (i) Coordination With First-time Homebuyer Credit for District of 
Columbia.--Paragraph (4) of section 1400C(e) of the Internal Revenue 
Code of 1986 is amended by striking ``and before December 1, 2009,''.
    (j) Effective Dates.--
            (1) In general.--The amendments made by subsections (b), 
        (c), (d), and (g) shall apply to residences purchased after the 
        date of the enactment of this Act.
            (2) Extensions.--The amendments made by subsections (a), 
        (f), and (i) shall apply to residences purchased after November 
        30, 2009.
            (3) Waiver of recapture.--The amendment made by subsection 
        (e) shall apply to dispositions and cessations after December 
        31, 2008.
            (4) Mathematical error authority.--The amendments made by 
        subsection (h) shall apply to returns for taxable years ending 
        on or after April 9, 2008.

SEC. 12. PROVISIONS TO ENHANCE THE ADMINISTRATION OF THE FIRST-TIME 
              HOMEBUYER TAX CREDIT.

    (a) Age Limitation.--
            (1) In general.--Subsection (b) of section 36 of the 
        Internal Revenue Code of 1986, as amended by this Act, is 
        amended by adding at the end the following new paragraph:
            ``(4) Age limitation.--No credit shall be allowed under 
        subsection (a) with respect to the purchase of any residence 
        unless the taxpayer has attained age 18 as of the date of such 
        purchase. In the case of any taxpayer who is married (within 
        the meaning of section 7703), the taxpayer shall be treated as 
        meeting the age requirement of the preceding sentence if the 
        taxpayer or the taxpayer's spouse meets such age 
        requirement.''.
            (2) Conforming amendment.--Subsection (g) of section 36 of 
        such Code, as amended by this Act, is amended by inserting 
        ``(b)(4),'' before ``(c)''.
    (b) Documentation Requirement.--Subsection (d) of section 36 of the 
Internal Revenue Code of 1986, as amended by this Act, is amended by 
striking ``or'' at the end of paragraph (2), by striking the period at 
the end of paragraph (3) and inserting ``, or'', and by adding at the 
end the following new paragraph:
            ``(4) the taxpayer fails to attach to the return of tax for 
        such taxable year a properly executed copy of the settlement 
        statement used to complete such purchase.''.
    (c) Restriction on Married Individual Acquiring Residence From 
Family of Spouse.--Clause (i) of section 36(c)(3)(A) of the Internal 
Revenue Code of 1986 is amended by inserting ``(or, if married, such 
individual's spouse)'' after ``person acquiring such property''.
    (d) Certain Errors With Respect to the First-time Homebuyer Tax 
Credit Treated as Mathematical or Clerical Errors.--Paragraph (2) of 
section 6213(g) the Internal Revenue Code of 1986, as amended by this 
Act, is amended by striking ``and'' at the end of subparagraph (N), by 
striking the period at the end of subparagraph (O) and inserting ``, 
and'', and by inserting after subparagraph (O) the following new 
subparagraph:
                    ``(P) an entry on a return claiming the credit 
                under section 36 if--
                            ``(i) the Secretary obtains information 
                        from the person issuing the TIN of the taxpayer 
                        that indicates that the taxpayer does not meet 
                        the age requirement of section 36(b)(4),
                            ``(ii) information provided to the 
                        Secretary by the taxpayer on an income tax 
                        return for at least one of the 2 preceding 
                        taxable years is inconsistent with eligibility 
                        for such credit, or
                            ``(iii) the taxpayer fails to attach to the 
                        return the form described in section 
                        36(d)(4).''.
    (e) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        purchases after the date of the enactment of this Act.
            (2) Documentation requirement.--The amendments made by 
        subsection (b) shall apply to returns for taxable years ending 
        after the date of the enactment of this Act.
            (3) Treatment as mathematical and clerical errors.--The 
        amendments made by subsection (d) shall apply to returns for 
        taxable years ending on or after April 9, 2008.

SEC. 13. 5-YEAR CARRYBACK OF OPERATING LOSSES.

    (a) In General.--Subparagraph (H) of section 172(b)(1) of the 
Internal Revenue Code of 1986 is amended to read as follows:
                    ``(H) Carryback for 2008 or 2009 net operating 
                losses.--
                            ``(i) In general.--In the case of an 
                        applicable net operating loss with respect to 
                        which the taxpayer has elected the application 
                        of this subparagraph--
                                    ``(I) subparagraph (A)(i) shall be 
                                applied by substituting any whole 
                                number elected by the taxpayer which is 
                                more than 2 and less than 6 for `2',
                                    ``(II) subparagraph (E)(ii) shall 
                                be applied by substituting the whole 
                                number which is one less than the whole 
                                number substituted under subclause (I) 
                                for `2', and
                                    ``(III) subparagraph (F) shall not 
                                apply.
                            ``(ii) Applicable net operating loss.--For 
                        purposes of this subparagraph, the term 
                        `applicable net operating loss' means the 
                        taxpayer's net operating loss for a taxable 
                        year ending after December 31, 2007, and 
                        beginning before January 1, 2010.
                            ``(iii) Election.--
                                    ``(I) In general.--Any election 
                                under this subparagraph may be made 
                                only with respect to 1 taxable year.
                                    ``(II) Procedure.--Any election 
                                under this subparagraph shall be made 
                                in such manner as may be prescribed by 
                                the Secretary, and shall be made by the 
                                due date (including extension of time) 
                                for filing the return for the 
                                taxpayer's last taxable year beginning 
                                in 2009. Any such election, once made, 
                                shall be irrevocable.
                            ``(iv) Limitation on amount of loss 
                        carryback to 5th preceding taxable year.--
                                    ``(I) In general.--The amount of 
                                any net operating loss which may be 
                                carried back to the 5th taxable year 
                                preceding the taxable year of such loss 
                                under clause (i) shall not exceed 50 
                                percent of the taxpayer's taxable 
                                income (computed without regard to the 
                                net operating loss for the loss year or 
                                any taxable year thereafter) for such 
                                preceding taxable year.
                                    ``(II) Carrybacks and carryovers to 
                                other taxable years.--Appropriate 
                                adjustments in the application of the 
                                second sentence of paragraph (2) shall 
                                be made to take into account the 
                                limitation of subclause (I).
                                    ``(III) Exception for 2008 
                                elections by small businesses.--
                                Subclause (I) shall not apply to any 
                                loss of an eligible small business with 
                                respect to any election made under this 
                                subparagraph as in effect on the day 
                                before the date of the enactment of the 
                                Worker, Homeownership, and Business 
                                Assistance Act of 2009.
                            ``(v) Special rules for small business.--
                                    ``(I) In general.--In the case of 
                                an eligible small business which made 
                                or makes an election under this 
                                subparagraph as in effect on the day 
                                before the date of the enactment of the 
                                Worker, Homeownership, and Business 
                                Assistance Act of 2009, clause (iii)(I) 
                                shall be applied by substituting `2 
                                taxable years' for `1 taxable year'.
                                    ``(II) Eligible small business.--
                                For purposes of this subparagraph, the 
                                term `eligible small business' has the 
                                meaning given such term by subparagraph 
                                (F)(iii), except that in applying such 
                                subparagraph, section 448(c) shall be 
                                applied by substituting `$15,000,000' 
                                for `$5,000,000' each place it 
                                appears.''.
    (b) Alternative Tax Net Operating Loss Deduction.--Subclause (I) of 
section 56(d)(1)(A)(ii) of the Internal Revenue Code of 1986 is amended 
to read as follows:
                                    ``(I) the amount of such deduction 
                                attributable to an applicable net 
                                operating loss with respect to which an 
                                election is made under section 
                                172(b)(1)(H), or''.
    (c) Loss From Operations of Life Insurance Companies.--Subsection 
(b) of section 810 of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new paragraph:
            ``(4) Carryback for 2008 or 2009 losses.--
                    ``(A) In general.--In the case of an applicable 
                loss from operations with respect to which the taxpayer 
                has elected the application of this paragraph, 
                paragraph (1)(A) shall be applied by substituting any 
                whole number elected by the taxpayer which is more than 
                3 and less than 6 for `3'.
                    ``(B) Applicable loss from operations.--For 
                purposes of this paragraph, the term `applicable loss 
                from operations' means the taxpayer's loss from 
                operations for a taxable year ending after December 31, 
                2007, and beginning before January 1, 2010.
                    ``(C) Election.--
                            ``(i) In general.--Any election under this 
                        paragraph may be made only with respect to 1 
                        taxable year.
                            ``(ii) Procedure.--Any election under this 
                        paragraph shall be made in such manner as may 
                        be prescribed by the Secretary, and shall be 
                        made by the due date (including extension of 
                        time) for filing the return for the taxpayer's 
                        last taxable year beginning in 2009. Any such 
                        election, once made, shall be irrevocable.
                    ``(D) Limitation on amount of loss carryback to 5th 
                preceding taxable year.--
                            ``(i) In general.--The amount of any loss 
                        from operations which may be carried back to 
                        the 5th taxable year preceding the taxable year 
                        of such loss under subparagraph (A) shall not 
                        exceed 50 percent of the taxpayer's taxable 
                        income (computed without regard to the loss 
                        from operations for the loss year or any 
                        taxable year thereafter) for such preceding 
                        taxable year.
                            ``(ii) Carrybacks and carryovers to other 
                        taxable years.--Appropriate adjustments in the 
                        application of the second sentence of paragraph 
                        (2) shall be made to take into account the 
                        limitation of clause (i).''.
    (d) Anti-abuse Rules.--The Secretary of Treasury or the Secretary's 
designee shall prescribe such rules as are necessary to prevent the 
abuse of the purposes of the amendments made by this section, including 
anti-stuffing rules, anti-churning rules (including rules relating to 
sale-leasebacks), and rules similar to the rules under section 1091 of 
the Internal Revenue Code of 1986 relating to losses from wash sales.
    (e) Effective Dates.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        net operating losses arising in taxable years ending after 
        December 31, 2007.
            (2) Alternative tax net operating loss deduction.--The 
        amendment made by subsection (b) shall apply to taxable years 
        ending after December 31, 2002.
            (3) Loss from operations of life insurance companies.--The 
        amendment made by subsection (d) shall apply to losses from 
        operations arising in taxable years ending after December 31, 
        2007.
            (4) Transitional rule.--In the case of any net operating 
        loss (or, in the case of a life insurance company, any loss 
        from operations) for a taxable year ending before the date of 
        the enactment of this Act--
                    (A) any election made under section 172(b)(3) or 
                810(b)(3) of the Internal Revenue Code of 1986 with 
                respect to such loss may (notwithstanding such section) 
                be revoked before the due date (including extension of 
                time) for filing the return for the taxpayer's last 
                taxable year beginning in 2009, and
                    (B) any application under section 6411(a) of such 
                Code with respect to such loss shall be treated as 
                timely filed if filed before such due date.
    (f) Exception for TARP Recipients.--The amendments made by this 
section shall not apply to--
            (1) any taxpayer if--
                    (A) the Federal Government acquired before the date 
                of the enactment of this Act an equity interest in the 
                taxpayer pursuant to the Emergency Economic 
                Stabilization Act of 2008,
                    (B) the Federal Government acquired before such 
                date of enactment any warrant (or other right) to 
                acquire any equity interest with respect to the 
                taxpayer pursuant to the Emergency Economic 
                Stabilization Act of 2008, or
                    (C) such taxpayer receives after such date of 
                enactment funds from the Federal Government in exchange 
                for an interest described in subparagraph (A) or (B) 
                pursuant to a program established under title I of 
                division A of the Emergency Economic Stabilization Act 
                of 2008 (unless such taxpayer is a financial 
                institution (as defined in section 3 of such Act) and 
                the funds are received pursuant to a program 
                established by the Secretary of the Treasury for the 
                stated purpose of increasing the availability of credit 
                to small businesses using funding made available under 
                such Act), or
            (2) the Federal National Mortgage Association and the 
        Federal Home Loan Mortgage Corporation, and
            (3) any taxpayer which at any time in 2008 or 2009 was or 
        is a member of the same affiliated group (as defined in section 
        1504 of the Internal Revenue Code of 1986, determined without 
        regard to subsection (b) thereof) as a taxpayer described in 
        paragraph (1) or (2).

SEC. 14. EXCLUSION FROM GROSS INCOME OF QUALIFIED MILITARY BASE 
              REALIGNMENT AND CLOSURE FRINGE.

    (a) In General.--Subsection (n) of section 132 of the Internal 
Revenue Code of 1986 is amended--
            (1) in subparagraph (1) by striking ``this subsection) to 
        offset the adverse effects on housing values as a result of a 
        military base realignment or closure'' and inserting ``the 
        American Recovery and Reinvestment Tax Act of 2009)'', and
            (2) in subparagraph (2) by striking ``clause (1) of''.
    (b) Effective Date.--The amendments made by this act shall apply to 
payments made after February 17, 2009.

SEC. 15. DELAY IN APPLICATION OF WORLDWIDE ALLOCATION OF INTEREST.

    (a) In General.--Paragraphs (5)(D) and (6) of section 864(f) of the 
Internal Revenue Code of 1986 are each amended by striking ``December 
31, 2010'' and inserting ``December 31, 2017''.
    (b) Conforming Amendment.--Section 864(f) of the Internal Revenue 
Code of 1986 is amended by striking paragraph (7).
    (c) Effective Dates.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2010.

SEC. 16. INCREASE IN PENALTY FOR FAILURE TO FILE A PARTNERSHIP OR S 
              CORPORATION RETURN.

    (a) In General.--Sections 6698(b)(1) and 6699(b)(1) of the Internal 
Revenue Code of 1986 are each amended by striking ``$89'' and inserting 
``$195''.
    (b) Effective Date.--The amendments made by this section shall 
apply to returns for taxable years beginning after December 31, 2009.

SEC. 17. CERTAIN TAX RETURN PREPARERS REQUIRED TO FILE RETURNS 
              ELECTRONICALLY.

    (a) In General.--Subsection (e) of section 6011 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(3) Special rule for tax return preparers.--
                    ``(A) In general.--The Secretary shall require than 
                any individual income tax return prepared by a tax 
                return preparer be filed on magnetic media if--
                            ``(i) such return is filed by such tax 
                        return preparer, and
                            ``(ii) such tax return preparer is a 
                        specified tax return preparer for the calendar 
                        year during which such return is filed.
                    ``(B) Specified tax return preparer.--For purposes 
                of this paragraph, the term `specified tax return 
                preparer' means, with respect to any calendar year, any 
                tax return preparer unless such preparer reasonably 
                expects to file 10 or fewer individual income tax 
                returns during such calendar year.
                    ``(C) Individual income tax return.--For purposes 
                of this paragraph, the term `individual income tax 
                return' means any return of the tax imposed by subtitle 
                A on individuals, estates, or trusts.''.
    (b) Conforming Amendment.--Paragraph (1) of section 6011(e) of the 
Internal Revenue Code of 1986 is amended by striking ``The Secretary 
may not'' and inserting ``Except as provided in paragraph (3), the 
Secretary may not''.
    (c) Effective Date.--The amendments made by this section shall 
apply to returns filed after December 31, 2010.

SEC. 18. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

    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 33.0 percentage points.

            Attest:

                                                             Secretary.
111th CONGRESS

  1st Session

                               H.R. 3548

_______________________________________________________________________

                               AMENDMENT