[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4213 Engrossed in House (EH)]
111th CONGRESS
1st Session
H. R. 4213
_______________________________________________________________________
AN ACT
To amend the Internal Revenue Code of 1986 to extend certain expiring
provisions, 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 CONTENTS.
(a) Short Title.--This Act may be cited as the ``Tax Extenders Act
of 2009''.
(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--GENERAL PROVISIONS
Subtitle A--Individual Tax Relief
Sec. 101. Deduction of State and local sales taxes.
Sec. 102. Additional standard deduction for State and local real
property taxes.
Sec. 103. Above-the-line deduction for qualified tuition and related
expenses.
Sec. 104. Deduction for certain expenses of elementary and secondary
school teachers.
Subtitle B--Business Tax Relief
Sec. 111. Research credit.
Sec. 112. Exceptions for active financing income.
Sec. 113. Look-thru treatment of payments between related controlled
foreign corporations under foreign personal
holding company rules.
Sec. 114. 15-year straight-line cost recovery for qualified leasehold
improvements, qualified restaurant
buildings and improvements, and qualified
retail improvements.
Sec. 115. 7-year recovery period for motorsports entertainment
complexes.
Sec. 116. Railroad track maintenance credit.
Sec. 117. Special expensing rules for certain film and television
productions.
Sec. 118. Expensing of environmental remediation costs.
Sec. 119. Mine rescue team training credit.
Sec. 120. Election to expense advanced mine safety equipment.
Sec. 121. Employer wage credit for employees who are active duty
members of the uniformed services.
Sec. 122. 5-year depreciation for farming business machinery and
equipment.
Sec. 123. Treatment of certain dividends and assets of regulated
investment companies.
Sec. 124. Look-thru of certain regulated investment company stock in
determining gross estate of nonresidents.
Sec. 125. RIC qualified investment entity treatment under FIRPTA.
Sec. 126. Suspension of limitation on percentage depletion for oil and
gas from marginal wells.
Subtitle C--Charitable Provisions
Sec. 131. Contributions of capital gain real property made for
conservation purposes.
Sec. 132. Enhanced charitable deduction for contributions of food
inventory.
Sec. 133. Enhanced charitable deduction for contributions of book
inventories to public schools.
Sec. 134. Enhanced charitable deduction for corporate contributions of
computer technology and equipment for
educational purposes.
Sec. 135. Tax-free distributions from individual retirement plans for
charitable purposes.
Sec. 136. Modification of tax treatment of certain payments to
controlling exempt organizations.
Sec. 137. Exclusion of gain or loss on sale or exchange of certain
brownfield sites from unrelated business
taxable income.
Sec. 138. Basis adjustment to stock of S corporations making charitable
contributions of property.
Subtitle D--Miscellaneous Provisions
Sec. 141. Indian employment tax credit.
Sec. 142. Accelerated depreciation for business property on an Indian
reservation.
Sec. 143. Deduction allowable with respect to income attributable to
domestic production activities in Puerto
Rico.
Sec. 144. Temporary increase in limit on cover over of rum excise taxes
to Puerto Rico and the Virgin Islands.
Sec. 145. American Samoa economic development credit.
TITLE II--COMMUNITY ASSISTANCE PROVISIONS
Sec. 201. Empowerment zone tax incentives.
Sec. 202. Renewal community tax incentives.
Sec. 203. New markets tax credit.
Sec. 204. Tax incentives for investment in the District of Columbia.
Sec. 205. Tax incentives for New York Liberty Zone.
Sec. 206. Tax incentives for the Gulf Opportunity Zone.
Sec. 207. Election for refundable low-income housing credit for 2010.
TITLE III--DISASTER RELIEF PROVISIONS
Sec. 301. Deductibility of personal casualty losses attributable to
federally declared disasters.
Sec. 302. Expensing of certain qualified disaster expenses.
Sec. 303. 5-year carryback of net operating losses attributable to
Federally declared disasters.
Sec. 304. Waiver of certain mortgage revenue bond requirements for
residences located in Federally declared
disaster areas.
Sec. 305. Expensing and special depreciation allowance for qualified
disaster assistance property.
TITLE IV--ENERGY PROVISIONS
Sec. 401. Incentives for biodiesel and renewable diesel.
Sec. 402. Alternative motor vehicle credit for heavy hybrids.
Sec. 403. Alternative fuel credit for natural gas and liquified
petroleum gas.
Sec. 404. Special rule for sales or dispositions to implement FERC or
State electric restructuring policy for
qualified electric utilities.
TITLE V--FOREIGN ACCOUNT TAX COMPLIANCE
Subtitle A--Increased Disclosure of Beneficial Owners
Sec. 501. Reporting on certain foreign accounts.
Sec. 502. Repeal of certain foreign exceptions to registered bond
requirements.
Subtitle B--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.
Subtitle C--Other Disclosure Provisions
Sec. 521. Reporting of activities with respect to passive foreign
investment companies.
Sec. 522. Secretary permitted to require financial institutions to file
certain returns related to withholding on
foreign transfers electronically.
Subtitle D--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.
Subtitle E--Substitute Dividends and Dividend Equivalent Payments
Received by Foreign Persons Treated as Dividends
Sec. 541. Substitute dividends and dividend equivalent payments
received by foreign persons treated as
dividends.
TITLE VI--OTHER REVENUE PROVISIONS
Subtitle A--Partnership Interests Held by Partners Providing Services
Sec. 601. Partnership interests transferred in connection with
performance of services.
Sec. 602. Income of partners for performing investment management
services treated as ordinary income
received for performance of services.
Subtitle B--Time for Payment of Corporate Estimated Taxes
Sec. 611. Time for payment of corporate estimated taxes.
Subtitle C--Tax Expenditure Study
Sec. 621. Findings.
Sec. 622. Study of extended tax expenditures.
TITLE I--GENERAL PROVISIONS
Subtitle A--Individual Tax Relief
SEC. 101. DEDUCTION OF STATE AND LOCAL SALES TAXES.
(a) In General.--Subparagraph (I) of section 164(b)(5) is amended
by striking ``January 1, 2010'' and inserting ``January 1, 2011''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2009.
SEC. 102. ADDITIONAL STANDARD DEDUCTION FOR STATE AND LOCAL REAL
PROPERTY TAXES.
(a) In General.--Subparagraph (C) of section 63(c)(1) is amended by
striking ``or 2009'' and inserting ``, 2009, or 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2009.
SEC. 103. ABOVE-THE-LINE DEDUCTION FOR QUALIFIED TUITION AND RELATED
EXPENSES.
(a) In General.--Subsection (e) of section 222 is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2009.
SEC. 104. DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY AND SECONDARY
SCHOOL TEACHERS.
(a) In General.--Subparagraph (D) of section 62(a)(2) is amended by
striking ``or 2009'' and inserting ``2009, or 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2009.
Subtitle B--Business Tax Relief
SEC. 111. RESEARCH CREDIT.
(a) In General.--Subparagraph (B) of section 41(h)(1) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Conforming Amendment.--Subparagraph (D) of section 45C(b)(1) is
amended by striking ``December 31, 2009'' and inserting ``December 31,
2010''.
(c) Effective Date.--The amendment made by this section shall apply
to amounts paid or incurred after December 31, 2009.
SEC. 112. EXCEPTIONS FOR ACTIVE FINANCING INCOME.
(a) In General.--Sections 953(e)(10) and 954(h)(9) are each amended
by striking ``January 1, 2010'' and inserting ``January 1, 2011''.
(b) Conforming Amendment.--Section 953(e)(10) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years of foreign corporations beginning after December
31, 2009, and to taxable years of United States shareholders with or
within which any such taxable year of such foreign corporation ends.
SEC. 113. LOOK-THRU TREATMENT OF PAYMENTS BETWEEN RELATED CONTROLLED
FOREIGN CORPORATIONS UNDER FOREIGN PERSONAL HOLDING
COMPANY RULES.
(a) In General.--Subparagraph (C) of section 954(c)(6) is amended
by striking ``January 1, 2010'' and inserting ``January 1, 2011''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years of foreign corporations beginning after December 31,
2009, and to taxable years of United States shareholders with or within
which any such taxable year of such foreign corporation ends.
SEC. 114. 15-YEAR STRAIGHT-LINE COST RECOVERY FOR QUALIFIED LEASEHOLD
IMPROVEMENTS, QUALIFIED RESTAURANT BUILDINGS AND
IMPROVEMENTS, AND QUALIFIED RETAIL IMPROVEMENTS.
(a) In General.--Clauses (iv), (v), and (ix) of section
168(e)(3)(E) are each amended by striking ``January 1, 2010'' and
inserting ``January 1, 2011''.
(b) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2009.
SEC. 115. 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS ENTERTAINMENT
COMPLEXES.
(a) In General.--Subparagraph (D) of section 168(i)(15) is amended
by striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after December 31, 2009.
SEC. 116. RAILROAD TRACK MAINTENANCE CREDIT.
(a) In General.--Subsection (f) of section 45G is amended by
striking ``January 1, 2010'' and inserting ``January 1, 2011''.
(b) Effective Date.--The amendment made by this section shall apply
to expenditures paid or incurred in taxable years beginning after
December 31, 2009.
SEC. 117. SPECIAL EXPENSING RULES FOR CERTAIN FILM AND TELEVISION
PRODUCTIONS.
(a) In General.--Subsection (f) of section 181 is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to productions commencing after December 31, 2009.
SEC. 118. EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.
(a) In General.--Subsection (h) of section 198 is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to expenditures paid or incurred after December 31, 2009.
SEC. 119. MINE RESCUE TEAM TRAINING CREDIT.
(a) In General.--Subsection (e) of section 45N is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2009.
SEC. 120. ELECTION TO EXPENSE ADVANCED MINE SAFETY EQUIPMENT.
(a) In General.--Subsection (g) of section 179E is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after December 31, 2009.
SEC. 121. EMPLOYER WAGE CREDIT FOR EMPLOYEES WHO ARE ACTIVE DUTY
MEMBERS OF THE UNIFORMED SERVICES.
(a) In General.--Subsection (f) of section 45P is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to payments made after December 31, 2009.
SEC. 122. 5-YEAR DEPRECIATION FOR FARMING BUSINESS MACHINERY AND
EQUIPMENT.
(a) In General.--Clause (vii) of section 168(e)(3)(B) is amended by
striking ``January 1, 2010'' and inserting ``January 1, 2011''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after December 31, 2009.
SEC. 123. TREATMENT OF CERTAIN DIVIDENDS AND ASSETS OF REGULATED
INVESTMENT COMPANIES.
(a) In General.--Paragraphs (1)(C) and (2)(C) of section 871(k) are
each amended by striking ``December 31, 2009'' and inserting ``December
31, 2010''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2009.
SEC. 124. LOOK-THRU OF CERTAIN REGULATED INVESTMENT COMPANY STOCK IN
DETERMINING GROSS ESTATE OF NONRESIDENTS.
(a) In General.--Paragraph (3) of section 2105(d) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to estates of decedents dying after December 31, 2009.
SEC. 125. RIC QUALIFIED INVESTMENT ENTITY TREATMENT UNDER FIRPTA.
(a) In General.--Clause (ii) of section 897(h)(4)(A) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to distributions made after December 31, 2009.
SEC. 126. SUSPENSION OF LIMITATION ON PERCENTAGE DEPLETION FOR OIL AND
GAS FROM MARGINAL WELLS.
(a) In General.--Clause (ii) of section 613A(c)(6)(H) is amended by
striking ``January 1, 2010'' and inserting ``January 1, 2011''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2009.
Subtitle C--Charitable Provisions
SEC. 131. CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY MADE FOR
CONSERVATION PURPOSES.
(a) In General.--Clause (vi) of section 170(b)(1)(E) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Contributions by Certain Corporate Farmers and Ranchers.--
Clause (iii) of section 170(b)(2)(B) is amended by striking ``December
31, 2009'' and inserting ``December 31, 2010''.
(c) Effective Date.--The amendments made by this section shall
apply to contributions made in taxable years beginning after December
31, 2009.
SEC. 132. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF FOOD
INVENTORY.
(a) In General.--Clause (iv) of section 170(e)(3)(C) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to contributions made after December 31, 2009.
SEC. 133. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF BOOK
INVENTORIES TO PUBLIC SCHOOLS.
(a) In General.--Clause (iv) of section 170(e)(3)(D) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to contributions made after December 31, 2009.
SEC. 134. ENHANCED CHARITABLE DEDUCTION FOR CORPORATE CONTRIBUTIONS OF
COMPUTER TECHNOLOGY AND EQUIPMENT FOR EDUCATIONAL
PURPOSES.
(a) In General.--Subparagraph (G) of section 170(e)(6) is amended
by striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to contributions made in taxable years beginning after December 31,
2009.
SEC. 135. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT PLANS FOR
CHARITABLE PURPOSES.
(a) In General.--Subparagraph (F) of section 408(d)(8) is amended
by striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to distributions made in taxable years beginning after December 31,
2009.
SEC. 136. MODIFICATION OF TAX TREATMENT OF CERTAIN PAYMENTS TO
CONTROLLING EXEMPT ORGANIZATIONS.
(a) In General.--Clause (iv) of section 512(b)(13)(E) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to payments received or accrued after December 31, 2009.
SEC. 137. EXCLUSION OF GAIN OR LOSS ON SALE OR EXCHANGE OF CERTAIN
BROWNFIELD SITES FROM UNRELATED BUSINESS TAXABLE INCOME.
(a) In General.--Subparagraph (K) of section 512(b)(19) is amended
by striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to property acquired after December 31, 2009.
SEC. 138. BASIS ADJUSTMENT TO STOCK OF S CORPORATIONS MAKING CHARITABLE
CONTRIBUTIONS OF PROPERTY.
(a) In General.--Paragraph (2) of section 1367(a) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to contributions made in taxable years beginning after December 31,
2009.
Subtitle D--Miscellaneous Provisions
SEC. 141. INDIAN EMPLOYMENT TAX CREDIT.
(a) In General.--Subsection (f) of section 45A is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2009.
SEC. 142. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY ON AN INDIAN
RESERVATION.
(a) In General.--Paragraph (8) of section 168(j) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after December 31, 2009.
SEC. 143. DEDUCTION ALLOWABLE WITH RESPECT TO INCOME ATTRIBUTABLE TO
DOMESTIC PRODUCTION ACTIVITIES IN PUERTO RICO.
(a) In General.--Subparagraph (C) of section 199(d)(8) is amended--
(1) by striking ``first 4 taxable years'' and inserting
``first 5 taxable years'', and
(2) by striking ``January 1, 2010'' and inserting ``January
1, 2011''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2009.
SEC. 144. TEMPORARY INCREASE IN LIMIT ON COVER OVER OF RUM EXCISE TAXES
TO PUERTO RICO AND THE VIRGIN ISLANDS.
(a) In General.--Paragraph (1) of section 7652(f) is amended by
striking ``January 1, 2010'' and inserting ``January 1, 2011''.
(b) Effective Date.--The amendment made by this section shall apply
to distilled spirits brought into the United States after December 31,
2009.
SEC. 145. AMERICAN SAMOA ECONOMIC DEVELOPMENT CREDIT.
(a) In General.--Subsection (d) of section 119 of division A of the
Tax Relief and Health Care Act of 2006 is amended--
(1) by striking ``first 4 taxable years'' and inserting
``first 5 taxable years'', and
(2) by striking ``January 1, 2010'' and inserting ``January
1, 2011''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2009.
TITLE II--COMMUNITY ASSISTANCE PROVISIONS
SEC. 201. EMPOWERMENT ZONE TAX INCENTIVES.
(a) In General.--Clause (i) of section 1391(d)(1)(A) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Increased Exclusion of Gain on Stock of Empowerment Zone
Businesses.--Subparagraph (C) of section 1202(a)(2) is amended--
(1) by striking ``December 31, 2014'' and inserting
``December 31, 2015'', and
(2) by striking ``2014'' in the heading and inserting
``2015''.
(c) Effective Date.--The amendments made by this section shall
apply to periods after December 31, 2009.
SEC. 202. RENEWAL COMMUNITY TAX INCENTIVES.
(a) In General.--Subsection (b) of section 1400E is amended--
(1) by striking ``December 31, 2009'' in paragraphs (1)(A)
and (3) and inserting ``December 31, 2010'', and
(2) by striking ``January 1, 2010'' in paragraph (3) and
inserting ``January 1, 2011''.
(b) Zero-Percent Capital Gains Rate.--
(1) Acquisition dates.--Paragraphs (2)(A)(i), (3)(A),
(4)(A)(i), and (4)(B)(i) of section 1400F(b) are each amended
by striking ``January 1, 2010'' and inserting ``January 1,
2011''.
(2) Limitation on period of gains.--Paragraph (2) of
section 1400F(c) is amended--
(A) by striking ``December 31, 2014'' and inserting
``December 31, 2015'', and
(B) by striking ``2014'' in the heading and
inserting ``2015''.
(3) Clerical amendment.--Subsection (d) of section 1400F is
amended by striking ``and `December 31, 2014' for `December 31,
2014'''.
(c) Commercial Revitalization Deduction.--Subsection (g) of section
1400I is amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(d) Increased Expensing Under Section 179.--Subparagraph (A) of
section 1400J(b)(1) is amended by striking ``January 1, 2010'' and
inserting ``January 1, 2011''.
(e) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
periods after December 31, 2009.
(2) Acquisitions.--The amendments made by subsection (b)(1)
and (d) shall apply to acquisitions after December 31, 2009.
(3) Commercial revitalization deduction.--The amendment
made by subsection (c) shall apply to building placed in
service after December 31, 2009.
SEC. 203. NEW MARKETS TAX CREDIT.
(a) In General.--Subparagraph (F) of section 45D(f)(1) is amended
by inserting ``and 2010'' after ``2009''.
(b) Carryover of Unused Limitation.--Paragraph (3) of section
45D(f) is amended by striking ``2014'' and inserting ``2015''.
(c) Effective Date.--The amendments made by this section shall
apply to calendar years beginning after 2009.
SEC. 204. TAX INCENTIVES FOR INVESTMENT IN THE DISTRICT OF COLUMBIA.
(a) In General.--Subsection (f) of section 1400 is amended by
striking ``December 31, 2009'' each place it appears and inserting
``December 31, 2010''.
(b) Tax-Exempt DC Empowerment Zone Bonds.--Subsection (b) of
section 1400A is amended by striking ``December 31, 2009'' and
inserting ``December 31, 2010''.
(c) Zero-Percent Capital Gains Rate.--
(1) Acquisition dates.--Paragraphs (2)(A)(i), (3)(A),
(4)(A)(i), and (4)(B)(i)(I) of section 1400B(b) are each
amended by striking ``January 1, 2010'' and inserting ``January
1, 2011''.
(2) Limitation on period of zero-percent capital gains.--
(A) In general.--Paragraph (2) of section 1400B(e)
is amended--
(i) by striking ``December 31, 2014'' and
inserting ``December 31, 2015'', and
(ii) by striking ``2014'' in the heading
and inserting ``2015''.
(B) Interests in partnership and s corporations.--
Paragraph (2) of section 1400B(g) is amended by
striking ``December 31, 2014'' and inserting ``December
31, 2015''.
(d) First-Time Homebuyer Credit.--Subsection (i) of section 1400C
is amended by striking ``January 1, 2010'' and inserting ``January 1,
2011''.
(e) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
periods after December 31, 2009.
(2) Tax-exempt dc empowerment zone bonds.--The amendment
made by subsection (b) shall apply to bonds issued after
December 31, 2009.
(3) Acquisition dates for zero-percent capital gains
rate.--The amendments made by subsection (c)(1) shall apply to
property acquired or substantially improved after December 31,
2009.
(4) First-time homebuyer credit.--The amendment made by
subsection (d) shall apply to property purchased after December
31, 2009.
SEC. 205. TAX INCENTIVES FOR NEW YORK LIBERTY ZONE.
(a) Bonus Depreciation for Nonresidential Real Property and
Residential Rental Property.--Subparagraph (A) of section 1400L(b)(2)
is amended by striking ``December 31, 2009'' in the last sentence and
inserting ``December 31, 2010''.
(b) Tax-Exempt Bond Financing.--Subparagraph (D) of section
1400L(d)(2) is amended by striking ``January 1, 2010'' and inserting
``January 1, 2011''.
(c) Effective Dates.--
(1) Bonus depreciation.--The amendment made by subsection
(a) shall apply to property placed in service after December
31, 2009.
(2) Tax-exempt bond financing.--The amendment made by
subsection (b) shall apply to bonds issued after December 31,
2009.
SEC. 206. TAX INCENTIVES FOR THE GULF OPPORTUNITY ZONE.
(a) Work Opportunity Tax Credit for Core Disaster Area.--Paragraph
(1) of section 201(b) of the Katrina Emergency Tax Relief Act of 2005
is amended by striking ``4-year'' and inserting ``5-year''.
(b) Increase in Rehabilitation Credit.--Subsection (h) of section
1400N is amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(c) Effective Dates.--
(1) Work opportunity tax credit.--The amendment made by
subsection (a) shall apply to individuals hired on or after
August 28, 2009.
(2) Rehabilitation credit.--The amendment made by
subsection (b) shall apply to amounts paid or incurred after
December 31, 2009.
SEC. 207. ELECTION FOR REFUNDABLE LOW-INCOME HOUSING CREDIT FOR 2010.
(a) In General.--Section 42 is amended by redesignating subsection
(n) as subsection (o) and by inserting after subsection (m) the
following new subsection:
``(n) Election for Refundable Credits.--
``(1) In general.--The housing credit agency of each State
shall be allowed a credit in an amount equal to such State's
2010 low-income housing refundable credit election amount which
shall be payable by the Secretary as provided in paragraph (5).
``(2) 2010 low-income housing refundable credit election
amount.--For purposes of this subsection, the term `2010 low-
income housing refundable credit election amount' means, with
respect to any State, such amount as the State may elect which
does not exceed 85 percent of the product of--
``(A) the sum of--
``(i) 100 percent of the State housing
credit ceiling for 2010 which is attributable
to amounts described in clauses (i) and (iii)
of subsection (h)(3)(C), and
``(ii) 40 percent of the State housing
credit ceiling for 2010 which is attributable
to amounts described in clauses (ii) and (iv)
of such subsection, multiplied by
``(B) 10.
``(3) Coordination with non-refundable credit.--For
purposes of this section, the amounts described in clauses (i)
through (iv) of subsection (h)(3)(C) with respect to any State
for 2010 shall each be reduced by so much of such amount as is
taken into account in determining the amount of the credit
allowed with respect to such State under paragraph (1).
``(4) Special rule for basis.--Basis of a qualified low-
income building shall not be reduced by the amount of any
payment made under this subsection.
``(5) Payment of credit; use to finance low-income
buildings.--The Secretary shall pay to the housing credit
agency of each State an amount equal to the credit allowed
under paragraph (1). Rules similar to the rules of subsections
(c) and (d) of section 1602 of the American Recovery and
Reinvestment Tax Act of 2009 shall apply with respect to any
payment made under this paragraph, except that such subsection
(d) shall be applied by substituting `January 1, 2012' for
`January 1, 2011'.''.
(b) Conforming Amendment.--Section 1324(b)(2) of title 31, United
States Code, is amended by inserting ``42(n),'' after ``36A,''.
TITLE III--DISASTER RELIEF PROVISIONS
SEC. 301. DEDUCTIBILITY OF PERSONAL CASUALTY LOSSES ATTRIBUTABLE TO
FEDERALLY DECLARED DISASTERS.
(a) In General.--Subclause (I) of section 165(h)(3)(B)(i) is
amended by striking ``January 1, 2010'' and inserting ``January 1,
2011''.
(b) Extension of $500 Limitation.--Paragraph (1) of section 165(h)
is amended by striking ``December 31, 2009'' and inserting ``December
31, 2010''.
(c) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
losses attributable to disasters occurring after December 31,
2009.
(2) Extension of $500 limitation.--The amendment made by
subsection (b) shall apply to taxable years beginning after
December 31, 2009.
SEC. 302. EXPENSING OF CERTAIN QUALIFIED DISASTER EXPENSES.
(a) In General.--Subparagraph (A) of section 198A(b)(2) is amended
by striking ``January 1, 2010'' and inserting ``January 1, 2011''.
(b) Effective Date.--The amendment made by this section shall apply
to expenditures on account of disasters occurring after December 31,
2009.
SEC. 303. 5-YEAR CARRYBACK OF NET OPERATING LOSSES ATTRIBUTABLE TO
FEDERALLY DECLARED DISASTERS.
(a) In General.--Subclause (I) of section 172(j)(1)(A)(i) is
amended by striking ``January 1, 2010'' and inserting ``January 1,
2011''.
(b) Effective Date.--The amendment made by this section shall apply
to losses attributable to disasters occurring after December 31, 2009.
SEC. 304. WAIVER OF CERTAIN MORTGAGE REVENUE BOND REQUIREMENTS FOR
RESIDENCES LOCATED IN FEDERALLY DECLARED DISASTER AREAS.
(a) In General.--Paragraph (11) of section 143(k) is amended by
striking ``January 1, 2010'' and inserting ``January 1, 2011''.
(b) Special Rule for Residences Destroyed in Federally Declared
Disaster Areas.--Paragraph (13) of section 143(k), as redesignated
under subsection (c), is amended by striking ``January 1, 2010'' in
subparagraphs (A)(i) and (B)(i) and inserting ``January 1, 2011''.
(c) Technical Amendment.--Subsection (k) of section 143 is amended
by redesignating the second paragraph (12) (relating to special rules
for residences destroyed in Federally declared disasters) as paragraph
(13).
(d) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
bonds issued after December 31, 2009.
(2) Residences destroyed in federally declared disaster
areas.--The amendments made by subsection (b) shall apply with
respect to disasters occurring after December 31, 2009.
(3) Technical amendment.--The amendment made by subsection
(c) shall take effect as if included in section 709 of the Tax
Extenders and Alternative Minimum Tax Relief Act of 2008.
SEC. 305. EXPENSING AND SPECIAL DEPRECIATION ALLOWANCE FOR QUALIFIED
DISASTER ASSISTANCE PROPERTY.
(a) In General.--Subclause (I) of section 168(n)(2)(A)(ii) is
amended by striking ``January 1, 2010'' and inserting ``January 1,
2011''.
(b) Effective Date.--The amendment made by this section shall apply
to disasters occurring after December 31, 2009.
TITLE IV--ENERGY PROVISIONS
SEC. 401. INCENTIVES FOR BIODIESEL AND RENEWABLE DIESEL.
(a) Credits for Biodiesel and Renewable Diesel Used as Fuel.--
Subsection (g) of section 40A is amended by striking ``December 31,
2009'' and inserting ``December 31, 2010''.
(b) Excise Tax Credits and Payments for Biodiesel and Renewable
Diesel Fuel Mixtures.--
(1) Paragraph (6) of section 6426(c) is amended by striking
``December 31, 2009'' and inserting ``December 31, 2010''.
(2) Subparagraph (B) of section 6427(e)(6) is amended by
striking ``December 31, 2009'' and inserting ``December 31,
2010''.
(c) Effective Date.--The amendments made by this section shall
apply to sales and uses after December 31, 2009.
SEC. 402. ALTERNATIVE MOTOR VEHICLE CREDIT FOR HEAVY HYBRIDS.
(a) In General.--Paragraph (3) of section 30B(k) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to property purchased after December 31, 2009.
SEC. 403. ALTERNATIVE FUEL CREDIT FOR NATURAL GAS AND LIQUIFIED
PETROLEUM GAS.
(a) In General.--Paragraph (5) of section 6426(d) is amended by
striking ``after December 31, 2009'' and all that follows and inserting
``after--
``(A) September 30, 2014, in the case of liquefied
hydrogen,
``(B) December 31, 2010, in the case of--
``(i) compressed or liquified natural gas,
and
``(ii) liquified petroleum gas (other than
for use as fuel in a forklift), and
``(C) December 31, 2009, in any other case.''.
(b) Payment Authority.--Paragraph (6) of section 6427(e) is amended
by striking ``and'' at the end of subparagraph (C), by striking the
period at the end of subparagraph (D) and inserting a comma and by
adding at the end the following new subparagraphs:
``(E) any alternative fuel (as so defined)
involving compressed or liquified natural gas sold or
used after December 31, 2010, and
``(F) any alternative fuel (as so defined)
involving liquified petroleum gas (other than for use
as fuel in a forklift) sold or used after December 31,
2010.''.
(c) Conforming Amendment.--Subparagraph (C) of section 6427(e)(6)
is amended by inserting ``(E), or (F)'' after ``subparagraph (D)''.
(d) Effective Date.--The amendments made by this section shall
apply to fuel sold or used after December 31, 2009.
SEC. 404. SPECIAL RULE FOR SALES OR DISPOSITIONS TO IMPLEMENT FERC OR
STATE ELECTRIC RESTRUCTURING POLICY FOR QUALIFIED
ELECTRIC UTILITIES.
(a) In General.--Paragraph (3) of section 451(i) is amended by
striking ``January 1, 2010'' and inserting ``January 1, 2011''.
(b) Effective Date.--The amendment made by this section shall apply
to dispositions after December 31, 2009.
TITLE V--FOREIGN ACCOUNT TAX COMPLIANCE
Subtitle A--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 requirements 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
agreement 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 necessary 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
maintained by such institution, to report on an annual
basis 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 paragraph (3) with respect to
such payment, so much of such payment as is
allocable to accounts held by recalcitrant
account holders or foreign financial
institutions which do not meet the requirements
of this subsection,
``(E) to comply with requests by the Secretary for
additional 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 subsection (c) with respect to any United
States account maintained 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
Secretary that the foreign financial institution is out of
compliance with such agreement.
``(2) Financial institutions deemed to meet requirements 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
Secretary 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
institutions 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 withhold on
payments to recalcitrant account holders and nonparticipating
foreign financial institutions.--In the case of a foreign
financial institution which meets the requirements of this
subsection and such other requirements as the Secretary may
provide and which elects the application of this paragraph--
``(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 withholding 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 substantial 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) 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 foreign
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
``(ii) each holder of such account which is
a specified United States person or United
States owned foreign 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 intermediaries.--
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
institutions 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
requirements.--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 Secretary determines
would make the reporting required by this
section with respect to United States accounts
duplicative.
``(2) Financial account.--The term `financial account'
means, with respect to any financial institution--
``(A) any depository account maintained by such
financial institution,
``(B) any custodial account maintained by such
financial institution, and
``(C) except as otherwise provided by the
Secretary, any equity or debt interest in such
financial institution (other than interests which are
regularly traded on an established securities market).
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
maintained 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) is engaged in the business of holding
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 `recalcitrant
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 which is 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 subsection (b)) which is a
member of the same expanded affiliated 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
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 if 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 beneficial owner of a
payment if--
``(1) such beneficial owner or the payee provides the
withholding 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,
``(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
Secretary 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 provided
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, premiums, annuities,
compensations, remunerations, emoluments, and
other fixed or determinable annual or
periodical gains, profits, and income, if such
payment 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 institutions.--
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.
``(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 otherwise
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
section 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 instrumentality 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.--
``(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 foreign 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 financial
institutions permitted.--The identity of a foreign financial
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 providing 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 regulations
or other guidance as may be necessary or appropriate to carry out the
purposes of this chapter.''.
(b) Special Rule for Interest on Overpayments.--Subsection (e) of
section 6611 is amended by adding at the end the following new
paragraph:
``(4) Certain withholding taxes.--In the case of any
overpayment 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
subsection, the amendments made by this section shall apply to
payments made after December 31, 2012.
(2) Grandfathered treatment of outstanding obligations.--
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.
(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 enactment 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).
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 subparagraph
(C) as subparagraph (B).
(2) Conforming amendments.--
(A) 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).
(B) Subparagraph (B) of section 163(f)(2), as
redesignated 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''.
(C) Sections 165(j)(2)(A) and 1287(b)(1) are each
amended by striking ``except that clause (iv) of
subparagraph (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 otherwise be required to deduct
and withhold tax from such interest
under section 1441(a) receives a
statement (which meets the requirements
of paragraph (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.''.
(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--
``(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 Registered Form.--
Paragraph (3) of section 163(f) is amended by inserting ``, except that
a dematerialized book entry system 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 obligation which--
``(i) is required to be registered under
section 149(a), or
``(ii) is described in subparagraph (B).
``(B) Certain obligations not included.--An
obligation 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 statement 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.
Subtitle B--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
subsection (a), such person shall pay a penalty of $10,000.
``(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 Financial 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 regulations
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 enactment of
this Act.
SEC. 512. PENALTIES FOR UNDERPAYMENTS ATTRIBUTABLE TO UNDISCLOSED
FOREIGN FINANCIAL ASSETS.
(a) In General.--Section 6662 is amended--
(1) in subsection (b), by inserting after paragraph (5) the
following new paragraph:
``(6) Any undisclosed foreign financial asset
understatement.'', and
(2) by adding at the end the following new subsection:
``(i) Undisclosed Foreign Financial Asset Understatement.--
``(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 portion of an
underpayment which is attributable to any undisclosed 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 enactment of
this Act.
SEC. 513. MODIFICATION OF STATUTE OF LIMITATIONS FOR SIGNIFICANT
OMISSION OF INCOME IN CONNECTION WITH FOREIGN 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
subparagraphs (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 subsection (a) thereof and
without regard to any exceptions
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.--
(A) Subparagraph (B) of section 6501(e)(1), as
redesignated 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.--Paragraph (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
specified in section 6501 of the Internal Revenue Code of 1986
(determined without regard to such amendments) for assessment
of such taxes has not expired as of such date.
Subtitle C--Other Disclosure Provisions
SEC. 521. REPORTING OF ACTIVITIES WITH RESPECT TO PASSIVE FOREIGN
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 INSTITUTIONS TO FILE
CERTAIN RETURNS RELATED TO WITHHOLDING ON FOREIGN
TRANSFERS ELECTRONICALLY.
(a) In General.--Subsection (e) of section 6011 is amended by
adding at the end the following new paragraph:
``(3) Special rule for returns filed by financial
institutions with respect to withholding on foreign
transfers.--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).''.
(b) Conforming Amendment.--Subsection (c) of section 6724 is
amended by inserting ``or with respect to a return described in section
6011(e)(3)''.
(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.
Subtitle D--Provisions Related to Foreign Trusts
SEC. 531. CLARIFICATIONS WITH RESPECT TO FOREIGN TRUSTS WHICH ARE
TREATED AS HAVING A UNITED STATES BENEFICIARY.
(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 Beneficiaries.--
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 Understandings 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
otherwise) 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
transfers property to a foreign trust (other than a trust described in
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
Secretary 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 section 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 section 531, 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
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 enactment 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
subsequent 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 Secretary 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.
Subtitle E--Substitute Dividends and Dividend Equivalent Payments
Received by Foreign Persons Treated as Dividends
SEC. 541. SUBSTITUTE DIVIDENDS AND DIVIDEND EQUIVALENT PAYMENTS
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 this section, 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
subsection, the term `dividend equivalent' means--
``(A) any substitute dividend,
``(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).
``(3) Specified notional principal contract.--For purposes
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 transfers the
underlying security,
``(ii) in connection with the termination
of such contract, any short party transfers the
underlying security to any long party,
``(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, 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 determines 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 payment 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
contract, 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 this section 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. 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
or other arrangement that provides for the payment of a
dividend 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 90 days after the
date of the enactment of this Act.
TITLE VI--OTHER REVENUE PROVISIONS
Subtitle A--Partnership Interests Held by Partners Providing Services
SEC. 601. PARTNERSHIP INTERESTS TRANSFERRED IN CONNECTION WITH
PERFORMANCE OF SERVICES.
(a) Modification to Election To Include Partnership Interest in
Gross Income in Year of Transfer.--Subsection (c) of section 83 is
amended by redesignating paragraph (4) as paragraph (5) and by
inserting after paragraph (3) the following new paragraph:
``(4) Partnership interests.--Except as provided by the
Secretary, in the case of any transfer of an interest in a
partnership in connection with the provision of services to (or
for the benefit of) such partnership--
``(A) the fair market value of such interest shall
be treated for purposes of this section as being equal
to the amount of the distribution which the partner
would receive if the partnership sold (at the time of
the transfer) all of its assets at fair market value
and distributed the proceeds of such sale (reduced by
the liabilities of the partnership) to its partners in
liquidation of the partnership, and
``(B) the person receiving such interest shall be
treated as having made the election under subsection
(b)(1) unless such person makes an election under this
paragraph to have such subsection not apply.''.
(b) Conforming Amendment.--Paragraph (2) of section 83(b) is
amended by inserting ``or subsection (c)(4)(B)'' after ``paragraph
(1)''.
(c) Effective Date.--The amendments made by this section shall
apply to interests in partnerships transferred after the date of the
enactment of this Act.
SEC. 602. INCOME OF PARTNERS FOR PERFORMING INVESTMENT MANAGEMENT
SERVICES TREATED AS ORDINARY INCOME RECEIVED FOR
PERFORMANCE OF SERVICES.
(a) In General.--Part I of subchapter K of chapter 1 is amended by
adding at the end the following new section:
``SEC. 710. SPECIAL RULES FOR PARTNERS PROVIDING INVESTMENT MANAGEMENT
SERVICES TO PARTNERSHIP.
``(a) Treatment of Distributive Share of Partnership Items.--For
purposes of this title, in the case of an investment services
partnership interest--
``(1) In general.--Notwithstanding section 702(b)--
``(A) any net income with respect to such interest
for any partnership taxable year shall be treated as
ordinary income, and
``(B) any net loss with respect to such interest
for such year, to the extent not disallowed under
paragraph (2) for such year, shall be treated as an
ordinary loss.
All items of income, gain, deduction, and loss which are taken
into account in computing net income or net loss shall be
treated as ordinary income or ordinary loss (as the case may
be).
``(2) Treatment of losses.--
``(A) Limitation.--Any net loss with respect to
such interest shall be allowed for any partnership
taxable year only to the extent that such loss does not
exceed the excess (if any) of--
``(i) the aggregate net income with respect
to such interest for all prior partnership
taxable years, over
``(ii) the aggregate net loss with respect
to such interest not disallowed under this
subparagraph for all prior partnership taxable
years.
``(B) Carryforward.--Any net loss for any
partnership taxable year which is not allowed by reason
of subparagraph (A) shall be treated as an item of loss
with respect to such partnership interest for the
succeeding partnership taxable year.
``(C) Basis adjustment.--No adjustment to the basis
of a partnership interest shall be made on account of
any net loss which is not allowed by reason of
subparagraph (A).
``(D) Prior partnership years.--Any reference in
this paragraph to prior partnership taxable years shall
only include prior partnership taxable years to which
this section applies.
``(3) Net income and loss.--For purposes of this section--
``(A) Net income.--The term `net income' means,
with respect to any investment services partnership
interest for any partnership taxable year, the excess
(if any) of--
``(i) all items of income and gain taken
into account by the holder of such interest
under section 702 with respect to such interest
for such year, over
``(ii) all items of deduction and loss so
taken into account.
``(B) Net loss.--The term `net loss' means, with
respect to such interest for such year, the excess (if
any) of the amount described in subparagraph (A)(ii)
over the amount described in subparagraph (A)(i).
``(b) Dispositions of Partnership Interests.--
``(1) Gain.--Any gain on the disposition of an investment
services partnership interest shall be treated as ordinary
income and shall be recognized notwithstanding any other
provision of this subtitle.
``(2) Loss.--Any loss on the disposition of an investment
services partnership interest shall be treated as an ordinary
loss to the extent of the excess (if any) of--
``(A) the aggregate net income with respect to such
interest for all partnership taxable years, over
``(B) the aggregate net loss with respect to such
interest allowed under subsection (a)(2) for all
partnership taxable years.
``(3) Disposition of portion of interest.--In the case of
any disposition of an investment services partnership interest,
the amount of net loss which otherwise would have (but for
subsection (a)(2)(C)) applied to reduce the basis of such
interest shall be disregarded for purposes of this section for
all succeeding partnership taxable years.
``(4) Distributions of partnership property.--In the case
of any distribution of property by a partnership with respect
to any investment services partnership interest held by a
partner--
``(A) the excess (if any) of--
``(i) the fair market value of such
property at the time of such distribution, over
``(ii) the adjusted basis of such property
in the hands of the partnership,
shall be taken into account as an increase in such
partner's distributive share of the taxable income of
the partnership (except to the extent such excess is
otherwise taken into account in determining the taxable
income of the partnership),
``(B) such property shall be treated for purposes
of subpart B of part II as money distributed to such
partner in an amount equal to such fair market value,
and
``(C) the basis of such property in the hands of
such partner shall be such fair market value.
Subsection (b) of section 734 shall be applied without regard
to the preceding sentence.
``(5) Application of section 751.--In applying section
751(a), an investment services partnership interest shall be
treated as an inventory item.
``(c) Investment Services Partnership Interest.--For purposes of
this section--
``(1) In general.--The term `investment services
partnership interest' means any interest in a partnership which
is held (directly or indirectly) by any person if it was
reasonably expected (at the time that such person acquired such
interest) that such person (or any person related to such
person) would provide (directly or indirectly) a substantial
quantity of any of the following services with respect to
assets held (directly or indirectly) by the partnership:
``(A) Advising as to the advisability of investing
in, purchasing, or selling any specified asset.
``(B) Managing, acquiring, or disposing of any
specified asset.
``(C) Arranging financing with respect to acquiring
specified assets.
``(D) Any activity in support of any service
described in subparagraphs (A) through (C).
For purposes of this paragraph, the term `specified asset'
means securities (as defined in section 475(c)(2) without
regard to the last sentence thereof), real estate held for
rental or investment, interests in partnerships, commodities
(as defined in section 475(e)(2)), or options or derivative
contracts with respect to any of the foregoing.
``(2) Exception for certain capital interests.--
``(A) In general.--In the case of any portion of an
investment services partnership interest which is a
qualified capital interest, all items of income, gain,
loss, and deduction which are allocated to such
qualified capital interest shall not be taken into
account under subsection (a) if--
``(i) allocations of items are made by the
partnership to such qualified capital interest
in the same manner as such allocations are made
to other qualified capital interests held by
partners who do not provide any services
described in paragraph (1) and who are not
related to the partner holding the qualified
capital interest, and
``(ii) the allocations made to such other
interests are significant compared to the
allocations made to such qualified capital
interest.
``(B) Special rule for no or insignificant
allocations to nonservice providers.--To the extent
provided by the Secretary in regulations or other
guidance, in any case in which the requirements of
subparagraph (A)(ii) are not satisfied, items of
income, gain, loss, and deduction shall not be taken
into account under subsection (a) to the extent that
such items are properly allocable under such
regulations or other guidance to qualified capital
interests.
``(C) Special rule for dispositions.--In the case
of any investment services partnership interest any
portion of which is a qualified capital interest,
subsection (b) shall not apply to so much of any gain
or loss as bears the same proportion to the entire
amount of such gain or loss as--
``(i) the distributive share of gain or
loss that would have been allocable to the
qualified capital interest under subparagraph
(A) if the partnership sold all of its assets
immediately before the disposition, bears to
``(ii) the distributive share of gain or
loss that would have been so allocable to the
investment services partnership interest of
which such qualified capital interest is a
part.
``(D) Qualified capital interest.--For purposes of
this paragraph, the term `qualified capital interest'
means so much of a partner's interest in the capital of
the partnership as is attributable to--
``(i) the fair market value of any money or
other property contributed to the partnership
in exchange for such interest (determined
without regard to section 752(a)) ,
``(ii) any amounts which have been included
in gross income under section 83 with respect
to the transfer of such interest, and
``(iii) the excess (if any) of--
``(I) any items of income and gain
taken into account under section 702
with respect to such interest for
taxable years to which this section
applies, over
``(II) any items of deduction and
loss so taken into account.
The qualified capital interest shall be reduced by
distributions from the partnership with respect to such
interest for taxable years to which this section
applies and by the excess (if any) of the amount
described in clause (iii)(II) over the amount described
in clause (iii)(I).
``(E) Treatment of certain loans.--
``(i) Proceeds of partnership loans not
treated as qualified capital interest of
service providing partners.--For purposes of
this paragraph, an investment services
partnership interest shall not be treated as a
qualified capital interest to the extent that
such interest is acquired in connection with
the proceeds of any loan or other advance made
or guaranteed, directly or indirectly, by any
other partner or the partnership (or any person
related to any such other partner or the
partnership).
``(ii) Reduction in allocations to
qualified capital interests for loans from
nonservice providing partners to the
partnership.--For purposes of this paragraph,
any loan or other advance to the partnership
made or guaranteed, directly or indirectly, by
a partner not providing services described in
paragraph (1) to the partnership (or any person
related to such partner) shall be taken into
account in determining the qualified capital
interests of the partners in the partnership.
``(3) Related persons.--A person shall be treated as
related to another person if the relationship between such
persons would result in a disallowance of losses under section
267 or 707(b).
``(d) Other Income and Gain in Connection With Investment
Management Services.--
``(1) In general.--If--
``(A) a person performs (directly or indirectly)
investment management services for any entity,
``(B) such person holds (directly or indirectly) a
disqualified interest with respect to such entity, and
``(C) the value of such interest (or payments
thereunder) is substantially related to the amount of
income or gain (whether or not realized) from the
assets with respect to which the investment management
services are performed,
any income or gain with respect to such interest shall be
treated as ordinary income. Rules similar to the rules of
subsection (c)(2) shall apply for purposes of this subsection.
``(2) Definitions.--For purposes of this subsection--
``(A) Disqualified interest.--
``(i) In general.--The term `disqualified
interest' means, with respect to any entity--
``(I) any interest in such entity
other than indebtedness,
``(II) convertible or contingent
debt of such entity,
``(III) any option or other right
to acquire property described in
subclause (I) or (II), and
``(IV) any derivative instrument
entered into (directly or indirectly)
with such entity or any investor in
such entity.
``(ii) Exceptions.--Such term shall not
include--
``(I) a partnership interest,
``(II) except as provided by the
Secretary, any interest in a taxable
corporation, and
``(III) except as provided by the
Secretary, stock in an S corporation.
``(B) Taxable corporation.--The term `taxable
corporation' means--
``(i) a domestic C corporation, or
``(ii) a foreign corporation substantially
all of the income of which is--
``(I) effectively connected with
the conduct of a trade or business in
the United States, or
``(II) subject to a comprehensive
foreign income tax (as defined in
section 457A(d)(2)).
``(C) Investment management services.--The term
`investment management services' means a substantial
quantity of any of the services described in subsection
(c)(1).
``(e) Regulations.--The Secretary shall prescribe such regulations
or other guidance as is necessary or appropriate to carry out the
purposes of this section, including regulations or other guidance to--
``(1) provide modifications to the application of this
section (including treating related persons as not related to
one another) to the extent such modification is consistent with
the purposes of this section,
``(2) prevent the avoidance of the purposes of this
section, and
``(3) coordinate this section with the other provisions of
this title.
``(f) Cross Reference.--For 40 percent penalty on certain
underpayments due to the avoidance of this section, see section
6662.''.
(b) Income From Investment Services Partnership Interests Not
Treated as Qualifying Income of Publicly Traded Partnerships.--
Subsection (d) of section 7704 is amended by adding at the end the
following new paragraph:
``(6) Income from investment services partnership interests
not qualified.--
``(A) In general.--Items of income and gain shall
not be treated as qualifying income if such items are
treated as ordinary income by reason of the application
of section 710 (relating to special rules for partners
providing investment management services to
partnership).
``(B) Special rules for certain partnerships.--
``(i) Certain partnerships owned by real
estate investment trusts.--Subparagraph (A)
shall not apply in the case of a partnership
which meets each of the following requirements:
``(I) Such partnership is treated
as publicly traded under this section
solely by reason of interests in such
partnership being convertible into
interests in a real estate investment
trust which is publicly traded.
``(II) 50 percent or more of the
capital and profits interests of such
partnership are owned, directly or
indirectly, at all times during the
taxable year by such real estate
investment trust (determined with the
application of section 267(c)).
``(III) Such partnership meets the
requirements of paragraphs (2), (3),
and (4) of section 856(c).
``(ii) Certain partnerships owning other
publicly traded partnerships.--Subparagraph (A)
shall not apply in the case of a partnership
which meets each of the following requirements:
``(I) Substantially all of the
assets of such partnership consist of
interests in one or more publicly
traded partnerships (determined without
regard to subsection (b)(2)).
``(II) Substantially all of the
income of such partnership is ordinary
income or section 1231 gain (as defined
in section 1231(a)(3)).
``(C) Transitional rule.--In the case of a
partnership which is a publicly traded partnership on
the date of the enactment of this paragraph,
subparagraph (A) shall not apply to any taxable year of
the partnership beginning before the date which is 10
years after the date of the enactment of this
paragraph.''.
(c) Imposition of Penalty on Underpayments.--
(1) In general.--Subsection (b) of section 6662, as amended
by section 512, is amended by inserting after paragraph (6) the
following new paragraph:
``(7) The application of subsection (d) of section 710 or
the regulations prescribed under section 710(e) to prevent the
avoidance of the purposes of section 710.''.
(2) Amount of penalty.--
(A) In general.--Section 6662, as amended by
section 512, is amended by adding at the end the
following new subsection:
``(j) Increase in Penalty in Case of Property Transferred for
Investment Management Services.--In the case of any portion of an
underpayment to which this section applies by reason of subsection
(b)(7), subsection (a) shall be applied with respect to such portion by
substituting `40 percent' for `20 percent'.''.
(B) Conforming amendments.--Subparagraph (B) of
section 6662A(e)(2) is amended--
(i) by striking ``section 6662(h)'' and
inserting ``subsection (h) or (i) of section
6662'', and
(ii) by striking ``gross valuation
misstatement penalty'' in the heading and
inserting ``certain increased underpayment
penalties''.
(3) Special rules for application of reasonable cause
exception.--Subsection (c) of section 6664 is amended--
(A) by redesignating paragraphs (2) and (3) as
paragraphs (3) and (4), respectively,
(B) by striking ``paragraph (2)'' in paragraph (4),
as so redesignated, and inserting ``paragraph (3)'',
and
(C) by inserting after paragraph (1) the following
new paragraph:
``(2) Special rule for underpayments attributable to
investment management services.--
``(A) In general.--Paragraph (1) shall not apply to
any portion of an underpayment to which this section
applies by reason of subsection (b)(7) unless--
``(i) the relevant facts affecting the tax
treatment of the item are adequately disclosed,
``(ii) there is or was substantial
authority for such treatment, and
``(iii) the taxpayer reasonably believed
that such treatment was more likely than not
the proper treatment.
``(B) Rules relating to reasonable belief.--Rules
similar to the rules of subsection (d)(3) shall apply
for purposes of subparagraph (A)(iii).''.
(d) Income and Loss From Investment Services Partnership Interests
Taken Into Account in Determining Net Earnings From Self-Employment.--
(1) Internal revenue code.--Section 1402(a) is amended by
striking ``and'' at the end of paragraph (16), by striking the
period at the end of paragraph (17) and inserting ``; and'',
and by inserting after paragraph (17) the following new
paragraph:
``(18) notwithstanding the preceding provisions of this
subsection, in the case of any individual engaged in the trade
or business of providing services described in section
710(c)(1) with respect to any entity, any amount treated as
ordinary income or ordinary loss of such individual under
section 710 with respect to such entity shall be taken into
account in determining the net earnings from self-employment of
such individual.''.
(2) Social security act.--Section 211(a) of the Social
Security Act is amended by inserting after paragraph (16) the
following new paragraph:
``(17) Notwithstanding the preceding provisions of this
subsection, in the case of any individual engaged in the trade
or business of providing services described in section
710(c)(1) of the Internal Revenue Code of 1986 with respect to
any entity, any amount treated as ordinary income or ordinary
loss of such individual under section 710 of such Code with
respect to such entity shall be taken into account in
determining the net earnings from self-employment of such
individual.''.
(e) Conforming Amendments.--
(1) Subsection (d) of section 731 is amended by inserting
``section 710(b)(4) (relating to distributions of partnership
property),'' after ``to the extent otherwise provided by''.
(2) Section 741 is amended by inserting ``or section 710
(relating to special rules for partners providing investment
management services to partnership)'' before the period at the
end.
(3) The table of sections for part I of subchapter K of
chapter 1 is amended by adding at the end the following new
item:
``Sec. 710. Special rules for partners providing investment management
services to partnership.''.
(f) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
taxable years ending after December 31, 2009.
(2) Partnership taxable years which include effective
date.--In applying section 710(a) of the Internal Revenue Code
of 1986 (as added by this section) in the case of any
partnership taxable year which includes December 31, 2009, the
amount of the net income referred to in such section shall be
treated as being the lesser of the net income for the entire
partnership taxable year or the net income determined by only
taking into account items attributable to the portion of the
partnership taxable year which is after such date.
(3) Dispositions of partnership interests.--Section 710(b)
of the Internal Revenue Code of 1986 (as added by this section)
shall apply to dispositions and distributions after December
31, 2009.
(4) Other income and gain in connection with investment
management services.--Section 710(d) of such Code (as added by
this section) shall take effect on January 1, 2010.
(5) Publicly traded partnerships.--The amendment made by
subsection (b) shall apply to taxable years beginning after
December 31, 2009.
Subtitle B--Time for Payment of Corporate Estimated Taxes
SEC. 611. 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 26.5 percentage points.
Subtitle C--Tax Expenditure Study
SEC. 621. FINDINGS.
Congress finds the following:
(1) Currently, the aggregate cost of Federal tax
expenditures rivals, or even exceeds, the amount of total
Federal discretionary spending.
(2) Given the escalating public debt, a critical
examination of this use of taxpayer dollars is essential.
(3) Additionally, tax expenditures can complicate the
Internal Revenue Code of 1986 for taxpayers and complicate tax
administration for the Internal Revenue Service.
(4) To facilitate a better understanding of tax
expenditures in the future, it is constructive for legislation
extending these provisions to include a study of such
provisions.
SEC. 622. STUDY OF EXTENDED TAX EXPENDITURES.
(a) In General.--Not later than November 30, 2010, the Chief of
Staff of the Joint Committee on Taxation, in consultation with the
Comptroller General of the United States, shall submit to the Committee
on Ways and Means of the House of Representatives and the Committee on
Finance of the Senate a report on each tax expenditure (as defined in
section 3(3) of the Congressional Budget Impoundment Control Act of
1974 (2 U.S.C. 622(3)) extended by this Act.
(b) Rolling Submission of Reports.--The Chief of Staff of the Joint
Committee on Taxation shall initially submit the reports for each such
tax expenditure enacted in subtitle B of title I (relating to business
tax relief) and title IV (relating to energy provisions) in order of
the tax expenditure incurring the least aggregate cost to the greatest
aggregate cost (determined by reference to the cost estimate of this
Act by the Joint Committee on Taxation). Thereafter, such reports may
be submitted in such order as the Chief of Staff determines
appropriate.
(c) Contents of Report.--Such reports shall contain the following:
(1) An explanation of the tax expenditure and any relevant
economic, social, or other context under which it was first
enacted.
(2) A description of the intended purpose of the tax
expenditure.
(3) An analysis of the overall success of the tax
expenditure in achieving such purpose, and evidence supporting
such analysis.
(4) An analysis of the extent to which further extending
the tax expenditure, or making it permanent, would contribute
to achieving such purpose.
(5) A description of the direct and indirect beneficiaries
of the tax expenditure, including identifying any unintended
beneficiaries.
(6) An analysis of whether the tax expenditure is the most
cost-effective method for achieving the purpose for which it
was intended, and a description of any more cost-effective
methods through which such purpose could be accomplished.
(7) A description of any unintended effects of the tax
expenditure that are useful in understanding the tax
expenditure's overall value.
(8) An analysis of how the tax expenditure could be
modified to better achieve its original purpose.
(9) A brief description of any interactions (actual or
potential) with other tax expenditures or direct spending
programs in the same or related budget function worthy of
further study.
(10) A description of any unavailable information the staff
of the Joint Committee on Taxation may need to complete a more
thorough examination and analysis of the tax expenditure, and
what must be done to make such information available.
(d) Minimum Analysis by Deadline.--In the event the Chief of Staff
of the Joint Committee on Taxation concludes it will not be feasible to
complete all reports by the date specified in subsection (a), at a
minimum, the reports for each tax expenditure enacted in subtitle B of
title I (relating to business tax relief) and title IV (relating to
energy provisions) shall be completed by such date.
Passed the House of Representatives December 9, 2009.
Attest:
Clerk.
111th CONGRESS
1st Session
H. R. 4213
_______________________________________________________________________
AN ACT
To amend the Internal Revenue Code of 1986 to extend certain expiring
provisions, and for other purposes.