Of a perfecting nature.

SA 3983. Mr. REID proposed an amendment to the bill H.R. 5140, to
provide economic stimulus through recovery rebates to individuals,
incentives for business investment, and an increase in conforming and
FHA loan limits; as follows:

Strike all after the first word and and insert the
following:

1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Economic
Stimulus Act of 2008''.
(b) Table of Contents.--The table of contents of this Act
is as follows:

Sec. 1. Short title; table of contents.

TITLE I--TAX RELIEF

Subtitle A--Rebates for Individuals

Sec. 101. Economic recovery stimulus credit and rebate.

Subtitle B--Incentives for Businesses

Sec. 111. Temporary bonus depreciation allowance for certain property.
Sec. 112. Increased expensing for small businesses for 2008.
Sec. 113. Carryback of certain net operating losses allowed for 5
years; temporary suspension of 90 percent AMT limit.

Subtitle C--Extensions of Energy Provisions

Sec. 121. Extension of credit for energy efficient appliances.
Sec. 122. Extension of credit for nonbusiness energy property.
Sec. 123. Suspension of taxable income limit with respect to marginal
wells.
Sec. 124. Extension of credit for residential energy efficient
property.
Sec. 125. Extension of renewable electricity and refined coal
production credit.
Sec. 126. Extension of new energy efficient home credit.
Sec. 127. Extension of energy credit.
Sec. 128. Extension and modification of credit for clean renewable
energy bonds.
Sec. 129. Extension of energy efficient commercial buildings deduction.
Sec. 130. Special rules for refund of the coal excise tax to certain
coal producers and exporters.

Subtitle D--Provisions Relating to Housing Bonds

Sec. 131. Modifications on use of qualified mortgage bonds; temporary
increased volume cap for certain housing bonds.

TITLE II--HOUSING GSE AND FHA LOAN LIMITS

Sec. 201. Temporary conforming loan limit increase for Fannie Mae and
Freddie Mac.
Sec. 202. Temporary loan limit increase for FHA.

TITLE III--TEMPORARY EXTENDED UNEMPLOYMENT COMPENSATION

Sec. 301. Federal-State agreements.
Sec. 302. Temporary extended unemployment compensation account.
Sec. 303. Payments to States having agreements for the payment of
temporary extended unemployment compensation.
Sec. 304. Financing provisions.
Sec. 305. Fraud and overpayments.
Sec. 306. Definitions.
Sec. 307. Applicability.

TITLE IV--LOW-INCOME HOME ENERGY ASSISTANCE

Sec. 401. Low-income home energy assistance program.

TITLE V--EMERGENCY DESIGNATION OF APPROPRIATED AMOUNTS

Sec. 501. Emergency designation.

TITLE I--TAX RELIEF

Subtitle A--Rebates for Individuals

SEC. 101. ECONOMIC RECOVERY STIMULUS CREDIT AND REBATE.

(a) In General.--Section 6428 of the Internal Revenue Code
of 1986 is amended to read as follows:

``SEC. 6428. ECONOMIC STIMULUS CREDIT FOR 2008.

``(a) In General.--In the case of an eligible individual
who is a taxpayer who meets the requirements of subsection
(b), there shall be allowed as a credit against the tax
imposed by subtitle A for the first taxable year beginning in
2008 an amount equal to the sum of--
``(1) $500 ($1,000 in the case of a joint return), plus
``(2) the product of $300 multiplied by the number of
qualifying children (within the meaning of section 24(c)) of
the taxpayer.
``(b) Requirements.--An eligible individual meets the
requirements of this subsection if the taxpayer--
``(1) has qualifying income of at least $3,000, or
``(2) has--
``(A) net income tax liability which is greater than zero,
and
``(B) gross income which is greater than the sum of the
basic standard deduction plus the exemption amount (twice the
exemption amount in the case of a joint return).
``(c) Treatment of Credit.--The credit allowed by
subsection (a) shall be treated as allowed by subpart C of
part IV of subchapter A of chapter 1.
``(d) Limitation Based on Adjusted Gross Income.--The
amount of the credit allowed by subsection (a) (determined
without regard to this subsection and subsection (f)) shall
be reduced (but not below zero) by 5 percent of so much of
the taxpayer's adjusted gross income as exceeds $150,000
($300,000 in the case of a joint return).
``(e) Definitions.--For purposes of this section--
``(1) Qualifying income.--For purposes of paragraph (1),
the term `qualifying income' means--
``(A) earned income,
``(B) social security benefits (within the meaning of
section 86(d)), and
``(C) any compensation or pension received under chapter 11
or chapter 15 of title 38, United States Code.
``(2) Net income tax liability.--The term `net income tax
liability' means the excess of--
``(A) the sum of the taxpayer's regular tax liability
(within the meaning of section 26(b)) and the tax imposed by
section 55 for the taxable year, over
``(B) the credits allowed by part IV (other than section 24
and subpart C thereof) of subchapter A of chapter 1.
``(3) Eligible individual.--The term `eligible individual'
means any individual other than--
``(A) any nonresident alien individual,
``(B) any individual with respect to whom a deduction under
section 151 is allowable to another taxpayer for a taxable
year beginning in the calendar year in which the individual's
taxable year begins,
``(C) an estate or trust, and
``(D) any individual who is a Senator or Representative in,
or Delegate or Resident Commissioner to, Congress.
``(4) Earned income.--The term `earned income' has the
meaning set forth in section 32(c)(2), except that--
``(A) subclause (II) of subparagraph (B)(vi) thereof shall
be applied by substituting `January 1, 2009' for `January 1,
2008', and
``(B) such term shall not include net earnings from self-
employment which are not taken into account in computing
taxable income.
``(5) Basic standard deduction; exemption amount.--The
terms `basic standard deduction' and `exemption amount' shall
have the same respective meanings as when used in section
6012(a).
``(f) Coordination With Advance Refunds of Credit.--
``(1) In general.--The amount of credit which would (but
for this paragraph) be allowable under this section shall be
reduced (but not below zero) by the aggregate refunds and
credits made or allowed to the taxpayer under subsection (g).
Any failure to so reduce the credit shall be treated as
arising out of a mathematical or clerical error and assessed
according to section 6213(b)(1).
``(2) Joint returns.--In the case of a refund or credit
made or allowed under subsection (g) with respect to a joint
return, half of such refund or credit shall be treated as
having been made or allowed to each individual filing such
return.
``(g) Advance Refunds and Credits.--
``(1) In general.--Each individual who was an eligible
individual who was a taxpayer who met the requirements of
subsection (b) for such individual's first taxable year
beginning in 2007 shall be treated as having made a payment
against the tax imposed by chapter 1 for such first taxable
year in an amount equal to the advance refund amount for such
taxable year.
``(2) Advance refund amount.--For purposes of paragraph
(1), the advance refund amount is the amount that would have
been allowed as a credit under this section for such first
taxable year if this section (other than subsection (f) and
this subsection) had applied to such taxable year.
``(3) Timing of payments.--The Secretary shall, subject to
the provisions of this title, refund or credit any
overpayment attributable to this section as rapidly as
possible. No refund or credit shall be made or allowed under
this subsection after December 31, 2008.
``(4) No interest.--No interest shall be allowed on any
overpayment attributable to this section.
``(h) Identification Number Requirement.--
``(1) In general.--No credit shall be allowed under
subsection (a) to an eligible individual who does not include
on the return of tax for the taxable year--
``(A) such individual's valid identification number,
``(B) in the case of a joint return, the valid
identification number of such individual's spouse, and
``(C) in the case of any qualifying child taken into
account under subsection (a)(2), the valid identification
number of such qualifying child.
``(2) Valid identification number.--For purposes of
paragraph (1), the term `valid identification number' means a
social security number issued to an individual by the Social
Security Administration. Such term shall not include a TIN
issued by the Internal Revenue Service.
``(i) Refunds Disregarded in the Administration of Federal
Programs and Federally Assisted Programs.--Any payment
considered to have been made to any individual by reason of
this section shall not be taken into account as income and
shall not be taken into account as resources for the month of
the receipt and the following 2 months, for purposes of
determining the eligibility of such individual or any other
individual for benefits or assistance, or the amount or
extent of benefits or assistance, under any Federal program
or under any

[[Page S664]]

State or local program financed in whole or in part with
Federal funds.''.
(b) Treatment of Possessions.--
(1) Mirror code possession.--The Secretary of the Treasury
shall make a payment to each possession of the United States
with a mirror code tax system in an amount equal to the loss
to that possession by reason of the amendments made by this
section. Such amount shall be determined by the Secretary of
the Treasury based on information provided by the government
of the respective possession.
(2) Other possessions.--The Secretary of the Treasury shall
make a payment to each possession of the United States which
does not have a mirror code tax system in an amount estimated
by the Secretary of the Treasury as being equal to the
aggregate benefits that would have been provided to residents
of such possession by reason of the amendments made by this
section if a mirror code tax system had been in effect in
such possession. The preceding sentence shall not apply with
respect to any possession of the United States unless such
possession has a plan, which has been approved by the
Secretary of the Treasury, under which such possession will
promptly distribute such payment to the residents of such
possession.
(3) Definitions and special rules.--
(A) Possession of the united states.--For purposes of this
subsection, the term ``possession of the United States''
includes the Commonwealth of Puerto Rico and the Commonwealth
of the Northern Mariana Islands.
(B) Mirror code tax system.--For purposes of this
subsection, the term ``mirror code tax system'' means, with
respect to any possession of the United States, the income
tax system of such possession if the income tax liability of
the residents of such possession under such system is
determined by reference to the income tax laws of the United
States as if such possession were the United States.
(C) Treatment of payments.--For purposes of section
1324(b)(2) of title 31, United States Code, the payments
under this subsection shall be treated in the same manner as
a refund due from the credit allowed under section 6428 of
the Internal Revenue Code of 1986 (as added by this section).
(c) Administrative Amendments.--
(1) Definition of deficiency.--Section 6211(d)(4)(A) of the
Internal Revenue Code of 1986 is amended by striking ``and
53(e)'' and inserting ``53(e), and 6428''.
(2) Mathematical or clerical error authority.--Section
6213(g)(2)(L) of such Code is amended by striking ``or 32''
and inserting ``32, or 6428''.
(d) Appropriations to Carry Out Recovery Rebates.--
(1) In general.--Immediately upon the enactment of this
Act, the following sums are appropriated, out of any money in
the Treasury not otherwise appropriated, for the fiscal year
ending September 30, 2008:
(A) For an additional amount for ``Department of the
Treasury--Financial Management Service--Salaries and
Expenses'', $64,175,000, to remain available until September
30, 2009.
(B) For an additional amount for ``Department of the
Treasury--Internal Revenue Service--Taxpayer Services'',
$50,720,000, to remain available until September 30, 2009.
(C) For an additional amount for ``Department of the
Treasury--Internal Revenue Service--Operations Support'',
$151,415,000, to remain available until September 30, 2009.
(2) Reports.--No later than 15 days after enactment of this
Act, the Secretary of the Treasury shall submit a plan to the
Committees on Appropriations of the House of Representatives
and the Senate detailing the expected use of the funds
provided by this subsection. Beginning 90 days after
enactment of this Act, the Secretary of the Treasury shall
submit a quarterly report to the Committees on Appropriations
of the House of Representatives and the Senate detailing the
actual expenditure of funds provided by this subsection and
the expected expenditure of such funds in the subsequent
quarter.
(e) Conforming Amendments.--
(1) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting ``or 6428'' after
``section 35''.
(2) Paragraph (1) of section 1(i) of the Internal Revenue
Code of 1986 is amended by striking subparagraph (D).
(3) The item relating to section 6428 in the table of
sections for subchapter B of chapter 65 of such Code is
amended to read as follows:

``Sec. 6428. Economic stimulus credit for 2008.''.

Subtitle B--Incentives for Businesses

SEC. 111. TEMPORARY BONUS DEPRECIATION ALLOWANCE FOR CERTAIN
PROPERTY.

(a) In General.--Subsection (k) of section 168 of the
Internal Revenue Code of 1986 is amended to read as follows:
``(k) Special Allowance for Certain Property.--
``(1) Additional allowance.--
``(A) In general.--In the case of any qualified property
placed in service by an eligible taxpayer--
``(i) the depreciation deduction provided by section 167(a)
for each applicable taxable year shall include an allowance
equal to 25 percent of the adjusted basis of the qualified
property, and
``(ii) the adjusted basis of the qualified property shall
be reduced by the amount of such deduction before computing
the amount otherwise allowable as a depreciation deduction
under this chapter for such taxable year and any subsequent
taxable year.
``(B) Eligible taxpayer.--
``(i) In general.--At such time and in such manner as the
Secretary shall prescribe, each taxpayer may elect to be an
eligible taxpayer with respect to 1 (and only 1) of the
following:

``(I) This subsection.
``(II) The application of section 56(d)(1)(A)(ii)(I) and
section 172(b)(1)(H)(ii) in connection with net operating
losses relating to taxable years beginning or ending during
2006, 2007, and 2008.
``(III) Section 179(b)(7).

``(ii) Eligible taxpayer.--For purposes of each of the
provisions described in clause (i), a taxpayer shall only be
treated as an eligible taxpayer with respect to the provision
with respect to which the taxpayer made the election under
clause (i).
``(iii) Election irrevocable.--An election under clause (i)
may not be revoked except with the consent of the Secretary.
``(C) Applicable taxable year.--For purposes of
subparagraph (A), the term `applicable taxable year' means,
with respect to any qualified property--
``(i) the first taxable year in which such property is
placed in service, and
``(ii) the next succeeding taxable year.
``(2) Qualified property.--For purposes of this
subsection--
``(A) In general.--The term `qualified property' means
property--
``(i)(I) to which this section applies which has a recovery
period of 20 years or less,
``(II) which is computer software (as defined in section
167(f)(1)(B)) for which a deduction is allowable under
section 167(a) without regard to this subsection,
``(III) which is water utility property, or
``(IV) which is qualified leasehold improvement property,
``(ii) the original use of which commences with the
taxpayer on or after the starting date,
``(iii) which is--

``(I) acquired by the taxpayer on or after the starting
date and before the ending date, but only if no written
binding contract for the acquisition was in effect before the
starting date, or
``(II) acquired by the taxpayer pursuant to a written
binding contract which was entered into on or after the
starting date and before the ending date, and

``(iv) which is placed in service by the taxpayer before
the ending date, or, in the case of property described in
subparagraph (B) or (C), before the date that is 1 year after
the ending date.
``(B) Certain property having longer production periods
treated as qualified property.--
``(i) In general.--The term `qualified property' includes
any property if such property--

``(I) meets the requirements of clauses (i), (ii), (iii),
and (iv) of subparagraph (A),
``(II) has a recovery period of at least 10 years or is
transportation property,
``(III) is subject to section 263A, and
``(IV) meets the requirements of clause (iii) of section
263A(f)(1)(B) (determined as if such clause also applied to
property which has a long useful life (within the meaning of
section 263A(f))).

``(ii) Only pre-ending date basis eligible for additional
allowance.--In the case of property which is qualified
property solely by reason of clause (i), paragraph (1) shall
apply only to the extent of the adjusted basis thereof
attributable to manufacture, construction, or production
before the ending date.
``(iii) Transportation property.--For purposes of this
subparagraph, the term `transportation property' means
tangible personal property used in the trade or business of
transporting persons or property.
``(iv) Application of subparagraph.--This subparagraph
shall not apply to any property which is described in
subparagraph (C).
``(C) Certain aircraft.--The term `qualified property'
includes property--
``(i) which meets the requirements of clauses (ii), (iii),
and (iv) of subparagraph (A),
``(ii) which is an aircraft which is not a transportation
property (as defined in subparagraph (B)(iii)) other than for
agricultural or firefighting purposes,
``(iii) which is purchased and on which such purchaser, at
the time of the contract for purchase, has made a
nonrefundable deposit of the lesser of--

``(I) 10 percent of the cost, or
``(II) $100,000, and

``(iv) which has--

``(I) an estimated production period exceeding 4 months,
and
``(II) a cost exceeding $200,000.

``(3) Exceptions.--
``(A) Alternative depreciation property.--This subsection
shall not apply to any property to which the alternative
depreciation system under subsection (g) applies,
determined--
``(i) without regard to paragraph (7) of subsection (g)
(relating to election to have system apply), and
``(ii) after application of section 280F(b) (relating to
listed property with limited business use).
``(B) Election out.--If a taxpayer makes an election under
this subparagraph with respect to any class of property for
any taxable year, this subsection shall not apply to all
property in such class placed in service during such taxable
year.
``(4) Special rules.--

[[Page S665]]

``(A) Self-constructed property.--In the case of a taxpayer
manufacturing, constructing, or producing property for the
taxpayer's own use, the requirements of paragraph (2)(A)(iii)
shall be treated as met if the taxpayer begins manufacturing,
constructing, or producing the property on or after the
starting date and before the ending date.
``(B) Sale-leasebacks.--For purposes of subparagraph (C)
and paragraph (2)(A)(ii), if property is--
``(i) originally placed in service on or after the starting
date by a person, and
``(ii) sold and leased back by such person within 3 months
after the date such property was originally placed in
service,

such property shall be treated as originally placed in
service not earlier than the date on which such property is
used under the leaseback referred to in clause (ii).
``(C) Syndication.--For purposes of paragraph (2)(A)(ii),
if--
``(i) property is originally placed in service on or after
the starting date by the lessor of such property,
``(ii) such property is sold by such lessor or any
subsequent purchaser within 3 months after the date such
property was originally placed in service (or, in the case of
multiple units of property subject to the same lease, within
3 months after the date the final unit is placed in service,
so long as the period between the time the first unit is
placed in service and the time the last unit is placed in
service does not exceed 12 months), and
``(iii) the user of such property after the last sale
during such 3-month period remains the same as when such
property was originally placed in service,

such property shall be treated as originally placed in
service not earlier than the date of such last sale.
``(D) Limitations related to users and related parties.--
This subsection shall not apply to any property if--
``(i) the user of such property (as of the date on which
such property is originally placed in service) or a person
which is related (within the meaning of section 267(b) or
707(b)) to such user or to the taxpayer had a written binding
contract in effect for the acquisition of such property at
any time before the starting date, or
``(ii) in the case of property manufactured, constructed,
or produced for such user's or person's own use, the
manufacture, construction, or production of such property
began at any time before the starting date.
``(5) Coordination with section 280f.--For purposes of
section 280F--
``(A) Automobiles.--In the case of a passenger automobile
(as defined in section 280F(d)(5)) which is qualified
property, the Secretary shall increase the limitations under
clauses (i) and (ii) of section 280F(a)(1)(A) by $3,825.
``(B) Listed property.--The deduction allowable under
paragraph (1) shall be taken into account in computing any
recapture amount under section 280F(b)(2).
``(6) Deduction allowed in computing minimum tax.--For
purposes of determining alternative minimum taxable income
under section 55, the deduction under subsection (a) for
qualified property shall be determined under this section
without regard to any adjustment under section 56.
``(7) Qualified leasehold improvement property.--For
purposes of this subsection--
``(A) In general.--The term `qualified leasehold
improvement property' means any improvement to an interior
portion of a building which is nonresidential real property
if--
``(i) such improvement is made under or pursuant to a lease
(as defined in subsection (h)(7))--

``(I) by the lessee (or any sublessee) of such portion, or
``(II) by the lessor of such portion,

``(ii) such portion is to be occupied exclusively by the
lessee (or any sublessee) of such portion, and
``(iii) such improvement is placed in service more than 3
years after the date the building was first placed in
service.
``(B) Certain improvements not included.--Such term shall
not include any improvement for which the expenditure is
attributable to--
``(i) the enlargement of the building,
``(ii) any elevator or escalator,
``(iii) any structural component benefitting a common area,
and
``(iv) the internal structural framework of the building.
``(C) Definitions and special rules.--For purposes of this
paragraph--
``(i) Commitment to lease treated as lease.--A commitment
to enter into a lease shall be treated as a lease, and the
parties to such commitment shall be treated as lessor and
lessee, respectively.
``(ii) Related persons.--A lease between related persons
shall not be considered a lease. For purposes of the
preceding sentence, the term `related persons' means--

``(I) members of an affiliated group (as defined in section
1504), and
``(II) persons having a relationship described in
subsection (b) of section 267; except that, for purposes of
this clause, the phrase `80 percent or more' shall be
substituted for the phrase `more than 50 percent' each place
it appears in such subsection.

``(8) Other definitions.--For purposes of this subsection--
``(A) Starting date.--The term `starting date' means
January 30, 2008.
``(B) Ending date.--The term `ending date' means December
31, 2008.''.
(b) Coordination With Other Bonus Depreciation
Provisions.--
(1) Cellulosic biomass ethanol plant property.--Paragraph
(4) of section 168(l) of the Internal Revenue Code of 1986 is
amended by redesignating subparagraphs (A), (B), and (C) as
subparagraphs (B), (C), and (D) and inserting before
subparagraph (B) (as so redesignated) the following new
subparagraph:
``(A) Bonus depreciation property under subsection (k).--
Such term shall not include any property to which section
168(k) applies.''.
(2) Specified gulf opportunity zone extension property.--
Subparagraph (B) of section 1400N(d)(6) of such Code is
amended by adding at the end the following new flush
sentence:

``Such term shall not include any property to which section
168(k) applies.''.
(c) Conforming Amendments.--
(1) Section 168(e)(6) of the Internal Revenue Code of 1986
is amended by striking ``section 168(k)(3)'' and inserting
``section 168(k)(7)''.
(2) Section 168(l) of such Code is amended--
(A) in paragraph (4)(B), as redesignated by subsection
(b)(1), by striking ``168(k)(2)(D)(i)'' and inserting
``169(k)(3)(A)''.
(B) by striking paragraph (5) and inserting the following:
``(5) Special rules.--For purposes of this subsection,
rules similar to the rules of paragraph (4) of section 168(k)
shall apply, except that in applying such paragraph--
``(A) the starting date shall be one day after the date of
the enactment of this subsection,
``(B) the ending date shall be January 1, 2013, and
``(C) `qualified cellulosic biomass ethanol plant property'
shall be substituted for `qualified property' in clause (iv)
thereof.'', and
(C) in paragraph (6), by striking ``168(k)(2)(G)'' and
inserting ``168(k)(6)''.
(3) Section 1400L(b)(2) of such Code is amended--
(A) in subparagraph (C)(ii), by striking
``168(k)(2)(D)(i)'' and inserting ``168(k)(3)(A)'',
(B) in subparagraph (C)(iv), by striking
``168(k)(2)(D)(iii)'' and inserting ``168(k)(3)(B)'', and
(C) in subparagraph (E), by striking ``168(k)(2)(G)'' and
inserting ``168(k)(6)''.
(4) Section 1400L(c) of such Code is amended--
(A) in paragraph (2), by striking ``168(k)(3)'' and
inserting ``168(k)(7)'', and
(B) in paragraph (5), by striking ``168(k)(2)(D)(iii)'' and
inserting ``168(k)(3)(B)''.
(5) Section 1400N(d) of such Code is amended--
(A) in paragraph (2)(B)(i), by striking ``168(k)(2)(D)(i)''
and inserting ``168(k)(3)(A)'',
(B) by striking paragraph (3) and inserting the following:
``(5) Special rules.--For purposes of this subsection,
rules similar to the rules of paragraph (4) of section 168(k)
shall apply, except that in applying such paragraph--
``(A) the starting date shall be August 28, 2005,
``(B) the ending date shall be January 1, 2008, and
``(C) `qualified Gulf Opportunity Zone property' shall be
substituted for `qualified property' in clause (iv)
thereof.'', and
(C) in paragraph (4), by striking ``168(k)(2)(G)'' and
inserting ``168(k)(6)''.
(d) Effective Date.--The amendments made by this section
shall apply to property placed in service after January 29,
2007, in taxable years ending after such date.

SEC. 112. INCREASED EXPENSING FOR SMALL BUSINESSES FOR 2008.

(a) In General.--Subsection (b) of section 179 of the
Internal Revenue Code of 1986 (relating to limitations) is
amended by adding at the end the following new paragraph:
``(7) Special rule for eligible taxpayers in 2008.--In the
case of any taxable year of any eligible taxpayer (within the
meaning of section 168(k)(1)(B)) beginning in 2008--
``(A) the dollar limitation under paragraph (1) shall be
$250,000, and
``(B) the dollar limitation under paragraph (2) shall be
$800,000.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2007.

SEC. 113. CARRYBACK OF CERTAIN NET OPERATING LOSSES ALLOWED
FOR 5 YEARS; TEMPORARY SUSPENSION OF 90 PERCENT
AMT LIMIT.

(a) In General.--Subparagraph (H) of section 172(b)(1) of
the Internal Revenue Code of 1986 is amended to read as
follows:
``(H) 5-year carryback of certain losses.--
``(i) Taxable years ending during 2001 and 2002.--In the
case of a net operating loss for any taxable year ending
during 2001 or 2002, subparagraph (A)(i) shall be applied by
substituting `5' for `2' and subparagraph (F) shall not
apply.
``(ii) Taxable years beginning or ending during 2006, 2007,
and 2008.--In the case of a net operating loss with respect
to any eligible taxpayer (within the meaning of section
168(k)(1)(B)) for any taxable year beginning or ending during
2006, 2007, or 2008--

``(I) subparagraph (A)(i) shall be applied by substituting
`5' for `2',
``(II) subparagraph (E)(ii) shall be applied by
substituting `4' for `2', and
``(III) subparagraph (F) shall not apply.''.

(b) Temporary Suspension of 90 Percent Limit on Certain NOL
Carrybacks and Carryovers.--
(1) In general.--Section 56(d) of the of the Internal
Revenue Code of 1986 is amended by

[[Page S666]]

adding at the end the following new paragraph:
``(3) Additional adjustments.--For purposes of paragraph
(1)(A), in the case of an eligible taxpayer (within the
meaning of section 168(k)(1)(B)), the amount described in
clause (I) of paragraph (1)(A)(ii) shall be increased by the
amount of the net operating loss deduction allowable for the
taxable year under section 172 attributable to the sum of--
``(A) carrybacks of net operating losses from taxable years
beginning or ending during 2006, 2007, and 2008, and
``(B) carryovers of net operating losses to taxable years
beginning or ending during 2006, 2007, or 2008.''.
(2) Conforming amendment.--Subclause (I) of section
56(d)(1)(A)(i) of such Code is amended by inserting ``amount
of such'' before ``deduction described in clause (ii)(I)''.
(c) Anti-Abuse Rules.--The Secretary of Treasury or the
Secretary's designee shall prescribes such rules as are
necessary to prevent the abuse of the purposes of the
amendments made by this section, including anti-stuffing
rules, anti-churning rules (including rules relating to sale-
leasebacks), and rules similar to the rules under section
1091 of the Internal Revenue Code of 1986 relating to losses
from wash sales.
(d) Effective Dates.--
(1) Subsection (a).--
(A) In general.--Except as provided in subparagraph (B),
the amendments made by subsection (a) shall apply to net
operating losses arising in taxable years beginning or ending
in 2006, 2007, or 2008.
(B) Election.--In the case of an eligible taxpayer (within
the meaning of section 168(k)(1)(B) of the Internal Revenue
Code of 1986) with a net operating loss for a taxable year
beginning or ending during 2006 or 2007--
(i) any election made under section 172(b)(3) of the
Internal Revenue Code of 1986 may (notwithstanding such
section) be revoked before November 1, 2008, and
(ii) any election made under section 172(j) of such Code
shall (notwithstanding such section) be treated as timely
made if made before November 1, 2008.
(2) Subsection (b).--The amendments made by subsection (b)
shall apply to taxable years ending after December 31, 1995.

Subtitle C--Extensions of Energy Provisions

SEC. 121. EXTENSION OF CREDIT FOR ENERGY EFFICIENT
APPLIANCES.

(a) In General.--Subsection (b) of section 45M of the
Internal Revenue Code of 1986 (relating to applicable amount)
is amended by striking ``calendar year 2006 or 2007'' each
place it appears in paragraphs (1)(A)(i), (1)(B)(i),
(1)(C)(ii)(I), and (1)(C)(iii)(I), and inserting ``calendar
year 2006, 2007, 2008, or 2009''.
(b) Restart of Credit Limitation.--Paragraph (1) of section
45M(e) of the Internal Revenue Code of 1986 (relating to
aggregate credit amount allowed) is amended by inserting
``beginning after December 31, 2007'' after ``for all prior
taxable years''.
(c) Effective Date.--The amendments made by this section
shall apply to appliances produced after December 31, 2007.

SEC. 122. EXTENSION OF CREDIT FOR NONBUSINESS ENERGY
PROPERTY.

(a) In General.--Section 25C(g) of the Internal Revenue
Code of 1986 (relating to termination) is amended by striking
``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2007.

SEC. 123. SUSPENSION OF TAXABLE INCOME LIMIT WITH RESPECT TO
MARGINAL WELLS.

(a) In General.--Subparagraph (H) of section 613A(c)(6) of
the Internal Revenue Code of 1986 (relating to temporary
suspension of taxable income limit with respect to marginal
production) is amended by striking ``January 1, 2008'' and
inserting ``January 1, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2007.

SEC. 124. EXTENSION OF CREDIT FOR RESIDENTIAL ENERGY
EFFICIENT PROPERTY.

Subsection (g) of section 25D of the Internal Revenue Code
of 1986 (relating to termination) is amended by striking
``December 31, 2008'' and inserting ``December 31, 2009''.

SEC. 125. EXTENSION OF RENEWABLE ELECTRICITY AND REFINED COAL
PRODUCTION CREDIT.

Section 45(d) of the Internal Revenue Code of 1986
(relating to qualified facilities) is amended by striking
``January 1, 2009'' each place it appears in paragraphs (1),
(2), (3), (4), (5), (6), (7), (8), and (9) and inserting
``January 1, 2010''.

SEC. 126. EXTENSION OF NEW ENERGY EFFICIENT HOME CREDIT.

Subsection (g) of section 45L of the Internal Revenue Code
of 1986 (relating to termination) is amended by striking
``December 31, 2008'' and inserting ``December 31, 2009''.

SEC. 127. EXTENSION OF ENERGY CREDIT.

(a) Solar Energy Property.--Paragraphs (2)(A)(i)(II) and
(3)(A)(ii) of section 48(a) of the Internal Revenue Code of
1986 (relating to energy credit) are each amended by striking
``January 1, 2009'' and inserting ``January 1, 2010''.
(b) Fuel Cell Property.--Subparagraph (E) of section
48(c)(1) of the Internal Revenue Code of 1986 (relating to
qualified fuel cell property) is amended by striking
``December 31, 2008'' and inserting ``December 31, 2009''.
(c) Microturbine Property.--Subparagraph (E) of section
48(c)(2) of the Internal Revenue Code of 1986 (relating to
qualified microturbine property) is amended by striking
``December 31, 2008'' and inserting ``December 31, 2009''.

SEC. 128. EXTENSION AND MODIFICATION OF CREDIT FOR CLEAN
RENEWABLE ENERGY BONDS.

(a) Extension.--Section 54(m) of the Internal Revenue Code
of 1986 (relating to termination) is amended by striking
``December 31, 2008'' and inserting ``December 31, 2009''.
(b) Increase in National Limitation.--Section 54(f) of the
Internal Revenue Code of 1986 (relating to limitation on
amount of bonds designated) is amended--
(1) by striking ``$1,200,000,000'' in paragraph (1) and
inserting ``$1,600,000,000'', and
(2) by striking ``$750,000,000'' in paragraph (2) and
inserting ``$1,000,000,000''.
(c) Modification of Ratable Principal Amortization
Requirement.--
(1) In general.--Paragraph (5) of section 54(l) is amended
to read as follows:
``(5) Ratable principal amortization required.--A bond
shall not be treated as a clean renewable energy bond unless
it is part of an issue which provides for an equal amount of
principal to be paid by the qualified issuer during each 12-
month period that the issue is outstanding (other than the
first 12-month period).''.
(2) Technical amendment.--The third sentence of section
54(e)(2) is amended by striking ``subsection (l)(6)'' and
inserting ``subsection (l)(5)''.
(d) Effective Date.--The amendments made by this section
shall apply to bonds issued after the date of the enactment
of this Act.

SEC. 129. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS
DEDUCTION.

Section 179D(h) of the Internal Revenue Code of 1986
(relating to termination) is amended by striking ``December
31, 2008'' and inserting ``December 31, 2009''.

SEC. 130. SPECIAL RULES FOR REFUND OF THE COAL EXCISE TAX TO
CERTAIN COAL PRODUCERS AND EXPORTERS.

(a) Refund.--
(1) Coal producers.--
(A) In general.--Notwithstanding subsections (a)(1) and (c)
of section 6416 and section 6511 of the Internal Revenue Code
of 1986, if--
(i) a coal producer establishes that such coal producer, or
a party related to such coal producer, exported coal produced
by such coal producer to a foreign country or shipped coal
produced by such coal producer to a possession of the United
States, or caused such coal to be exported or shipped, the
export or shipment of which was other than through an
exporter who meets the requirements of paragraph (2),
(ii) such coal producer filed an excise tax return on or
after October 1, 1990, and on or before the date of the
enactment of this Act, and
(iii) such coal producer files a claim for refund with the
Secretary not later than the close of the 30-day period
beginning on the date of the enactment of this Act,

then the Secretary shall pay to such coal producer an amount
equal to the tax paid under section 4121 of such Code on such
coal exported or shipped by the coal producer or a party
related to such coal producer, or caused by the coal producer
or a party related to such coal producer to be exported or
shipped.
(B) Special rules for certain taxpayers.--For purposes of
this section--
(i) In general.--If a coal producer or a party related to a
coal producer has received a judgment described in clause
(iii) and has provided evidence as provided under clause
(iv), such coal producer shall be deemed to have established
the export of coal to a foreign country or shipment of coal
to a possession of the United States under subparagraph
(A)(i).
(ii) Amount of payment.--If a taxpayer described in clause
(i) is entitled to a payment under subparagraph (A), the
amount of such payment shall be reduced by any amount paid
pursuant to the judgment described in clause (iii).
(iii) Judgment described.--A judgment is described in this
subparagraph if such judgment--

(I) is made by a court of competent jurisdiction within the
United States,
(II) relates to the constitutionality of any tax paid on
exported coal under section 4121 of the Internal Revenue Code
of 1986, and
(III) is in favor of the coal producer or the party related
to the coal producer.

(2) Exporters.--Notwithstanding subsections (a)(1) and (c)
of section 6416 and section 6511 of the Internal Revenue Code
of 1986, and a judgment described in paragraph (1)(B)(iii) of
this subsection, if--
(A) an exporter establishes that such exporter exported
coal to a foreign country or shipped coal to a possession of
the United States, or caused such coal to be so exported or
shipped,
(B) such exporter filed a tax return on or after October 1,
1990, and on or before the date of the enactment of this Act,
and
(C) such exporter files a claim for refund with the
Secretary not later than the close of the 30-day period
beginning on the date of the enactment of this Act,

then the Secretary shall pay to such exporter an amount equal
to $0.825 per ton of such coal exported by the exporter or
caused to be exported or shipped, or caused to be exported or
shipped, by the exporter.

[[Page S667]]

(b) Limitations.--Subsection (a) shall not apply with
respect to exported coal if a settlement with the Federal
Government has been made with and accepted by, the coal
producer, a party related to such coal producer, or the
exporter, of such coal, as of the date that the claim is
filed under this section with respect to such exported coal.
For purposes of this subsection, the term ``settlement with
the Federal Government'' shall not include any settlement or
stipulation entered into as of the date of the enactment of
this Act, the terms of which contemplate a judgment
concerning which any party has reserved the right to file an
appeal, or has filed an appeal.
(c) Subsequent Refund Prohibited.--No refund shall be made
under this section to the extent that a credit or refund of
such tax on such exported or shipped coal has been paid to
any person.
(d) Definitions.--For purposes of this section--
(1) Coal producer.--The term ``coal producer'' means the
person in whom is vested ownership of the coal immediately
after the coal is severed from the ground, without regard to
the existence of any contractual arrangement for the sale or
other disposition of the coal or the payment of any royalties
between the producer and third parties. The term includes any
person who extracts coal from coal waste refuse piles or from
the silt waste product which results from the wet washing (or
similar processing) of coal.
(2) Exporter.--The term ``exporter'' means a person, other
than a coal producer, who does not have a contract, fee
arrangement, or any other agreement with a producer or seller
of such coal to export or ship such coal to a third party on
behalf of the producer or seller of such coal and--
(A) is indicated in the shipper's export declaration or
other documentation as the exporter of record, or
(B) actually exported such coal to a foreign country or
shipped such coal to a possession of the United States, or
caused such coal to be so exported or shipped.
(3) Related party.--The term ``a party related to such coal
producer'' means a person who--
(A) is related to such coal producer through any degree of
common management, stock ownership, or voting control,
(B) is related (within the meaning of section 144(a)(3) of
such Code) to such coal producer, or
(C) has a contract, fee arrangement, or any other agreement
with such coal producer to sell such coal to a third party on
behalf of such coal producer.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Treasury or the Secretary's designee.
(e) Timing of Refund.--With respect to any claim for refund
filed pursuant to this section, the Secretary shall determine
whether the requirements of this section are met not later
than 180 days after such claim is filed. If the Secretary
determines that the requirements of this section are met, the
claim for refund shall be paid not later than 180 days after
the Secretary makes such determination.
(f) Interest.--Any refund paid pursuant to this section
shall be paid by the Secretary with interest from the date of
overpayment determined by using the overpayment rate and
method under section 6621 of such Code.
(g) Denial of Double Benefit.--The payment under subsection
(a) with respect to any coal shall not exceed--
(1) in the case of a payment to a coal producer, the amount
of tax paid under section 4121 of the Internal Revenue Code
of 1986 with respect to such coal by such coal producer or a
party related to such coal producer, and
(2) in the case of a payment to an exporter, an amount
equal to $0.825 per ton with respect to such coal exported by
the exporter or caused to be exported by the exporter.
(h) Application of Section.--This section applies only to
claims on coal exported or shipped on or after October 1,
1990, through the date of the enactment of this Act.
(i) Standing Not Conferred.--
(1) Exporters.--With respect to exporters, this section
shall not confer standing upon an exporter to commence, or
intervene in, any judicial or administrative proceeding
concerning a claim for refund by a coal producer of any
Federal or State tax, fee, or royalty paid by the coal
producer.
(2) Coal producers.--With respect to coal producers, this
section shall not confer standing upon a coal producer to
commence, or intervene in, any judicial or administrative
proceeding concerning a claim for refund by an exporter of
any Federal or State tax, fee, or royalty paid by the
producer and alleged to have been passed on to an exporter.

Subtitle D--Provisions Relating to Housing Bonds

SEC. 131. MODIFICATIONS ON USE OF QUALIFIED MORTGAGE BONDS;
TEMPORARY INCREASED VOLUME CAP FOR CERTAIN
HOUSING BONDS.

(a) Use of Qualified Mortgage Bonds Proceeds for Subprime
Refinancing Loans.--Section 143(k) of the Internal Revenue
Code of 1986 (relating to other definitions and special
rules) is amended by adding at the end the following new
paragraph:
``(12) Special rules for subprime refinancings.--
``(A) In general.--Notwithstanding the requirements of
subsection (i)(1), the proceeds of a qualified mortgage issue
may be used to refinance a mortgage on a residence which was
originally financed by the mortgagor through a qualified
subprime loan.
``(B) Special rules.--In applying this paragraph to any
case in which the proceeds of a qualified mortgage issue are
used for any refinancing described in subparagraph (A)--
``(i) subsection (a)(2)(D)(i) shall be applied by
substituting `12-month period' for `42-month period' each
place it appears,
``(ii) subsection (d) (relating to 3-year requirement)
shall not apply, and
``(iii) subsection (e) (relating to purchase price
requirement) shall be applied by using the market value of
the residence at the time of refinancing in lieu of the
acquisition cost.
``(C) Qualified subprime loan.--The term `qualified
subprime loan' means an adjustable rate single-family
residential mortgage loan originated after December 31, 2001,
and before January 1, 2008, that the bond issuer determines
would be reasonably likely to cause financial hardship to the
borrower if not refinanced.
``(D) Termination.--This paragraph shall not apply to any
bonds issued after December 31, 2010.''.
(b) Increased Volume Cap for Certain Bonds.--
(1) In general.--Subsection (d) of section 146 of the
Internal Revenue Code of 1986 is amended by adding at the end
the following new paragraph:
``(5) Increase and set aside for housing bonds for 2008.--
``(A) Increase for 2008.--In the case of calendar year
2008, the State ceiling for each State shall be increased by
an amount equal to $10,000,000,000 multiplied by a fraction--
``(i) the numerator of which is the population of such
State (as reported in the most recent decennial census), and
``(ii) the denominator of which is the total population of
all States (as reported in the most recent decennial census).
``(B) Set aside.--
``(i) In general.--Any amount of the State ceiling for any
State which is attributable to an increase under this
paragraph shall be allocated solely for one or more qualified
purposes.
``(ii) Qualified purpose.--For purposes of this paragraph,
the term `qualified purpose' means--

``(I) the issuance of exempt facility bonds used solely to
provide qualified residential rental projects, or
``(II) a qualified mortgage issue (determined by
substituting `12-month period' for `42-month period' each
place it appears in section 143(a)(2)(D)(i)).''.

(2) Carryforward of unused limitations.--Subsection (f) of
section 146 of such Code is amended by adding at the end the
following new paragraph:
``(6) Special rules for increased volume cap under
subsection (d)(5).--
``(A) In general.--No amount which is attributable to the
increase under subsection (d)(5) may be used--
``(i) for a carryforward purpose other than a qualified
purpose (as defined in subsection (d)(5)), and
``(ii) to issue any bond after calendar year 2010.
``(B) Ordering rules.--For purposes of subparagraph (A),
any carryforward of an issuing authority's volume cap for
calendar year 2008 shall be treated as attributable to such
increase to the extent of such increase.''.
(c) Alternative Minimum Tax.--
(1) In general.--Clause (ii) of section 57(a)(5)(C) of the
Internal Revenue Code of 1986 is amended by striking ``shall
not include'' and all that follows and inserting ``shall not
include--

``(I) any qualified 501(c)(3) bond (as defined in section
145), or
``(II) any qualified mortgage bond (as defined in section
143(a)) or qualified veterans' mortgage bond (as defined in
section 143(b)) issued after the date of the enactment of
this subclause and before January 1, 2011.''.

(2) Conforming amendment.--The heading for section
57(a)(5)(C)(ii) is amended by striking ``qualified 501(c)(3)
bonds'' and inserting ``certain bonds''.
(d) Effective Date.--The amendments made by this section
shall apply to bonds issued after the date of the enactment
of this Act.

TITLE II--HOUSING GSE AND FHA LOAN LIMITS

SEC. 201. TEMPORARY CONFORMING LOAN LIMIT INCREASE FOR FANNIE
MAE AND FREDDIE MAC.

(a) Increase of High Cost Areas Limits for Housing GSEs.--
For mortgages originated during the period beginning on July
1, 2007, and ending at the end of December 31, 2008:
(1) Fannie mae.--With respect to the Federal National
Mortgage Association, notwithstanding section 302(b)(2) of
the Federal National Mortgage Association Charter Act (12
U.S.C. 1717(b)(2)), the limitation on the maximum original
principal obligation of a mortgage that may be purchased by
the Association shall be the higher of--
(A) the limitation for 2008 determined under such section
302(b)(2) for a residence of the applicable size; or
(B) 125 percent of the area median price for a residence of
the applicable size, but in no case to exceed 175 percent of
the limitation for 2008 determined under such section
302(b)(2) for a residence of the applicable size.

[[Page S668]]

(2) Freddie mac.--With respect to the Federal Home Loan
Mortgage Corporation, notwithstanding section 305(a)(2) of
the Federal Home Loan Mortgage Corporation Act (12 U.S.C.
1454(a)(2)), the limitation on the maximum original principal
obligation of a mortgage that may be purchased by the
Corporation shall be the higher of--
(A) the limitation determined for 2008 under such section
305(a)(2) for a residence of the applicable size; or
(B) 125 percent of the area median price for a residence of
the applicable size, but in no case to exceed 175 percent of
the limitation determined for 2008 under such section
305(a)(2) for a residence of the applicable size.
(b) Determination of Limits.--The areas and area median
prices used for purposes of the determinations under
subsection (a) shall be the areas and area median prices used
by the Secretary of Housing and Urban Development in
determining the applicable limits under section 202 of this
title.
(c) Rule of Construction.--A mortgage originated during the
period referred to in subsection (a) that is eligible for
purchase by the Federal National Mortgage Association or the
Federal Home Loan Mortgage Corporation pursuant to this
section shall be eligible for such purchase for the duration
of the term of the mortgage, notwithstanding that such
purchase occurs after the expiration of such period.
(d) Effect on Housing Goals.--Notwithstanding any other
provision of law, mortgages purchased in accordance with the
increased maximum original principal obligation limitations
determined pursuant to this section shall not be considered
in determining performance with respect to any of the housing
goals established under section 1332, 1333, or 1334 of the
Housing and Community Development Act of 1992 (12 U.S.C.
4562-4), and shall not be considered in determining
compliance with such goals pursuant to section 1336 of such
Act (12 U.S.C. 4566) and regulations, orders, or guidelines
issued thereunder.
(e) Sense of Congress.--It is the sense of the Congress
that the securitization of mortgages by the Federal National
Mortgage Association and the Federal Home Loan Mortgage
Corporation plays an important role in providing liquidity to
the United States housing markets. Therefore, the Congress
encourages the Federal National Mortgage Association and the
Federal Home Loan Mortgage Corporation to securitize
mortgages acquired under the increased conforming loan limits
established in this section, to the extent that such
securitizations can be effected in a timely and efficient
manner that does not impose additional costs for mortgages
originated, purchased, or securitized under the existing
limits or interfere with the goal of adding liquidity to the
market.

SEC. 202. TEMPORARY LOAN LIMIT INCREASE FOR FHA.

(a) Increase of High-Cost Area Limit.--For mortgages for
which the mortgagee has issued credit approval for the
borrower on or before December 31, 2008, subparagraph (A) of
section 203(b)(2) of the National Housing Act (12 U.S.C.
1709(b)(2)(A)) shall be considered (except for purposes of
section 255(g) of such Act (12 U.S.C. 1715z-20(g))) to
require that a mortgage shall involve a principal obligation
in an amount that does not exceed the lesser of--
(1) in the case of a 1-family residence, 125 percent of the
median 1-family house price in the area, as determined by the
Secretary; and in the case of a 2-, 3-, or 4-family
residence, the percentage of such median price that bears the
same ratio to such median price as the dollar amount
limitation determined for 2008 under section 305(a)(2) of the
Federal Home Loan Mortgage Corporation Act (12 U.S.C.
1454(a)(2)) for a 2-, 3-, or 4-family residence,
respectively, bears to the dollar amount limitation
determined for 2008 under such section for a 1-family
residence; or
(2) 175 percent of the dollar amount limitation determined
for 2008 under such section 305(a)(2) for a residence of the
applicable size (without regard to any authority to increase
such limitation with respect to properties located in Alaska,
Guam, Hawaii, or the Virgin Islands);

except that the dollar amount limitation in effect under this
subsection for any size residence for any area shall not be
less than the greater of (A) the dollar amount limitation in
effect under such section 203(b)(2) for the area on October
21, 1998; or (B) 65 percent of the dollar amount limitation
determined for 2008 under such section 305(a)(2) for a
residence of the applicable size. Any reference in this
subsection to dollar amount limitations in effect under
section 305 (a)(2) of the Federal Home Loan Mortgage
Corporation Act means such limitations as in effect without
regard to any increase in such limitation pursuant to section
201 of this title.
(b) Discretionary Authority.--If the Secretary of Housing
and Urban Development determines that market conditions
warrant such an increase, the Secretary may, for the period
that begins upon the date of the enactment of this Act and
ends at the end of the date specified in subsection (a),
increase the maximum dollar amount limitation determined
pursuant to subsection (a) with respect to any particular
size or sizes of residences, or with respect to residences
located in any particular area or areas, to an amount that
does not exceed the maximum dollar amount then otherwise in
effect pursuant to subsection (a) for such size residence, or
for such area (if applicable), by not more than $100,000.
(c) Publication of Area Median Prices and Loan Limits.--The
Secretary of Housing and Urban Development shall publish the
median house prices and mortgage principal obligation limits,
as revised pursuant to this section, for all areas as soon as
practicable, but in no case more than 30 days after the date
of the enactment of this Act. With respect to existing areas
for which the Secretary has not established area median
prices before such date of enactment, the Secretary may rely
on existing commercial data in determining area median prices
and calculating such revised principal obligation limits.

TITLE III--TEMPORARY EXTENDED UNEMPLOYMENT COMPENSATION

SEC. 301. FEDERAL-STATE AGREEMENTS.

(a) In General.--Any State which desires to do so may enter
into and participate in an agreement under this title with
the Secretary of Labor (in this title referred to as the
``Secretary''). Any State which is a party to an agreement
under this title may, upon providing 30 days written notice
to the Secretary, terminate such agreement.
(b) Provisions of Agreement.--Any agreement under
subsection (a) shall provide that the State agency of the
State will make payments of temporary extended unemployment
compensation to individuals who--
(1) have exhausted all rights to regular compensation under
the State law or under Federal law with respect to a benefit
year (excluding any benefit year that ended before February
1, 2007);
(2) have no rights to regular compensation or extended
compensation with respect to a week under such law or any
other State unemployment compensation law or to compensation
under any other Federal law; and
(3) are not receiving compensation with respect to such
week under the unemployment compensation law of Canada.
(c) Exhaustion of Benefits.--For purposes of subsection
(b)(1), an individual shall be deemed to have exhausted such
individual's rights to regular compensation under a State law
when--
(1) no payments of regular compensation can be made under
such law because such individual has received all regular
compensation available to such individual based on employment
or wages during such individual's base period; or
(2) such individual's rights to such compensation have been
terminated by reason of the expiration of the benefit year
with respect to which such rights existed.
(d) Weekly Benefit Amount, Etc.--For purposes of any
agreement under this title--
(1) the amount of temporary extended unemployment
compensation which shall be payable to any individual for any
week of total unemployment shall be equal to the amount of
the regular compensation (including dependents' allowances)
payable to such individual during such individual's benefit
year under the State law for a week of total unemployment;
(2) the terms and conditions of the State law which apply
to claims for regular compensation and to the payment thereof
shall apply to claims for temporary extended unemployment
compensation and the payment thereof, except--
(A) that an individual shall not be eligible for temporary
extended unemployment compensation under this title unless,
in the base period with respect to which the individual
exhausted all rights to regular compensation under the State
law, the individual had 20 weeks of full-time insured
employment or the equivalent in insured wages, as determined
under the provisions of the State law implementing section
202(a)(5) of the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note); and
(B) where otherwise inconsistent with the provisions of
this title or with the regulations or operating instructions
of the Secretary promulgated to carry out this title; and
(3) the maximum amount of temporary extended unemployment
compensation payable to any individual for whom a temporary
extended unemployment compensation account is established
under section 302 shall not exceed the amount established in
such account for such individual.
(e) Election by States.--Notwithstanding any other
provision of Federal law (and if State law permits), the
Governor of a State that is in an extended benefit period may
provide for the payment of temporary extended unemployment
compensation in lieu of extended compensation to individuals
who otherwise meet the requirements of this section. Such an
election shall not require a State to trigger off an extended
benefit period.

SEC. 302. TEMPORARY EXTENDED UNEMPLOYMENT COMPENSATION
ACCOUNT.

(a) In General.--Any agreement under this title shall
provide that the State will establish, for each eligible
individual who files an application for temporary extended
unemployment compensation, a temporary extended unemployment
compensation account with respect to such individual's
benefit year.
(b) Amount in Account.--
(1) In general.--The amount established in an account under
subsection (a) shall be equal to the lesser of--
(A) 50 percent of the total amount of regular compensation
(including dependents' allowances) payable to the individual
during

[[Page S669]]

the individual's benefit year under such law; or
(B) 13 times the individual's average weekly benefit amount
for the benefit year.
(2) Weekly benefit amount.--For purposes of this
subsection, an individual's weekly benefit amount for any
week is the amount of regular compensation (including
dependents' allowances) under the State law payable to such
individual for such week for total unemployment.
(c) Special Rule.--
(1) In general.--Notwithstanding any other provision of
this section, if, at the time that the individual's account
is exhausted, such individual's State is in an extended
benefit period (as determined under paragraph (2)), then,
such account shall be augmented by an amount equal to the
amount originally established in such account (as determined
under subsection (b)(1)).
(2) Extended benefit period.--For purposes of paragraph
(1), a State shall be considered to be in an extended benefit
period if, at the time of exhaustion (as described in
paragraph (1))--
(A) such a period is then in effect for such State under
the Federal-State Extended Unemployment Compensation Act of
1970;
(B) such a period would then be in effect for such State
under such Act if section 203(d) of such Act were applied as
if it had been amended by striking ``5'' each place it
appears and inserting ``4''; or
(C) such a period would then be in effect for such State
under such Act if--
(i) section 203(f) of such Act was applied to such State
(regardless of whether the State by law had provided for such
application); and
(ii) such section 203(f) did not include the requirement
under paragraph (1)(A)(ii).

SEC. 303. PAYMENTS TO STATES HAVING AGREEMENTS FOR THE
PAYMENT OF TEMPORARY EXTENDED UNEMPLOYMENT
COMPENSATION.

(a) General Rule.--There shall be paid to each State which
has entered into an agreement under this title an amount
equal to 100 percent of the temporary extended unemployment
compensation paid to individuals by the State pursuant to
such agreement.
(b) Treatment of Reimbursable Compensation.--No payment
shall be made to any State under this section in respect of
any compensation to the extent the State is entitled to
reimbursement in respect of such compensation under the
provisions of any Federal law other than this title or
chapter 85 of title 5, United States Code. A State shall not
be entitled to any reimbursement under such chapter 85 in
respect of any compensation to the extent the State is
entitled to reimbursement under this title in respect of such
compensation.
(c) Determination of Amount.--Sums payable to any State by
reason of such State having an agreement under this title
shall be payable, either in advance or by way of
reimbursement (as may be determined by the Secretary), in
such amounts as the Secretary estimates the State will be
entitled to receive under this title for each calendar month,
reduced or increased, as the case may be, by any amount by
which the Secretary finds that the Secretary's estimates for
any prior calendar month were greater or less than the
amounts which should have been paid to the State. Such
estimates may be made on the basis of such statistical,
sampling, or other method as may be agreed upon by the
Secretary and the State agency of the State involved.

SEC. 304. FINANCING PROVISIONS.

(a) In General.--Funds in the extended unemployment
compensation account (as established by section 905(a) of the
Social Security Act (42 U.S.C. 1105(a))) of the Unemployment
Trust Fund (as established by section 904(a) of such Act (42
U.S.C. 1104(a))) shall be used for the making of payments to
States having agreements entered into under this title.
(b) Certification.--The Secretary shall from time to time
certify to the Secretary of the Treasury for payment to each
State the sums payable to such State under this title. The
Secretary of the Treasury, prior to audit or settlement by
the Government Accountability Office, shall make payments to
the State in accordance with such certification, by transfers
from the extended unemployment compensation account (as so
established) to the account of such State in the Unemployment
Trust Fund (as so established).
(c) Assistance to States.--There are appropriated out of
the employment security administration account (as
established by section 901(a) of the Social Security Act (42
U.S.C. 1101(a))) of the Unemployment Trust Fund, without
fiscal year limitation, such funds as may be necessary for
purposes of assisting States (as provided in title III of the
Social Security Act (42 U.S.C. 501 et seq.)) in meeting the
costs of administration of agreements under this title.
(d) Appropriations for Certain Payments.--There are
appropriated from the general fund of the Treasury, without
fiscal year limitation, to the extended unemployment
compensation account (as so established) of the Unemployment
Trust Fund (as so established) such sums as the Secretary
estimates to be necessary to make the payments under this
section in respect of--
(1) compensation payable under chapter 85 of title 5,
United States Code; and
(2) compensation payable on the basis of services to which
section 3309(a)(1) of the Internal Revenue Code of 1986
applies.

Amounts appropriated pursuant to the preceding sentence shall
not be required to be repaid.

SEC. 305. FRAUD AND OVERPAYMENTS.

(a) In General.--If an individual knowingly has made, or
caused to be made by another, a false statement or
representation of a material fact, or knowingly has failed,
or caused another to fail, to disclose a material fact, and
as a result of such false statement or representation or of
such nondisclosure such individual has received an amount of
temporary extended unemployment compensation under this title
to which the individual was not entitled, such individual--
(1) shall be ineligible for further temporary extended
unemployment compensation under this title in accordance with
the provisions of the applicable State unemployment
compensation law relating to fraud in connection with a claim
for unemployment compensation; and
(2) shall be subject to prosecution under section 1001 of
title 18, United States Code.
(b) Repayment.--In the case of individuals who have
received amounts of temporary extended unemployment
compensation under this title to which they were not
entitled, the State shall require such individuals to repay
the amounts of such temporary extended unemployment
compensation to the State agency, except that the State
agency may waive such repayment if it determines that--
(1) the payment of such temporary extended unemployment
compensation was without fault on the part of any such
individual; and
(2) such repayment would be contrary to equity and good
conscience.
(c) Recovery by State Agency.--
(1) In general.--The State agency may recover the amount to
be repaid, or any part thereof, by deductions from any
temporary extended unemployment compensation payable to such
individual under this title or from any unemployment
compensation payable to such individual under any State or
Federal unemployment compensation law administered by the
State agency or under any other State or Federal law
administered by the State agency which provides for the
payment of any assistance or allowance with respect to any
week of unemployment, during the 3-year period after the date
such individuals received the payment of the temporary
extended unemployment compensation to which they were not
entitled, except that no single deduction may exceed 50
percent of the weekly benefit amount from which such
deduction is made.
(2) Opportunity for hearing.--No repayment shall be
required, and no deduction shall be made, until a
determination has been made, notice thereof and an
opportunity for a fair hearing has been given to the
individual, and the determination has become final.
(d) Review.--Any determination by a State agency under this
section shall be subject to review in the same manner and to
the same extent as determinations under the State
unemployment compensation law, and only in that manner and to
that extent.

SEC. 306. DEFINITIONS.

In this title, the terms ``compensation'', ``regular
compensation'', ``extended compensation'', ``benefit year'',
``base period'', ``State'', ``State agency'', ``State law'',
and ``week'' have the respective meanings given such terms
under section 205 of the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note).

SEC. 307. APPLICABILITY.

(a) In General.--Except as provided in subsection (b), an
agreement entered into under this title shall apply to weeks
of unemployment--
(1) beginning after the date on which such agreement is
entered into; and
(2) ending on or before December 31, 2008.
(b) Transition for Amount Remaining in Account.--
(1) In general.--Subject to paragraphs (2) and (3), in the
case of an individual who has amounts remaining in an account
established under section 302 as of December 31, 2008,
temporary extended unemployment compensation shall continue
to be payable to such individual from such amounts for any
week beginning after such date for which the individual meets
the eligibility requirements of this title.
(2) No augmentation after december 31, 2008.--If the
account of an individual is exhausted after December 31,
2008, then section 302(c) shall not apply and such account
shall not be augmented under such section, regardless of
whether such individual's State is in an extended benefit
period (as determined under paragraph (2) of such section).
(3) Limitation.--No compensation shall be payable by reason
of paragraph (1) for any week beginning after March 31, 2009.

TITLE _--LOW-INCOME HOME ENERGY ASSISTANCE

SEC. __. LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM.

(a) In General.--In addition to amounts otherwise made
available for fiscal year 2008, there are appropriated, out
of any money in the Treasury not otherwise appropriated--
(1) $500,000,000 for fiscal year 2008, for making payments
under subsections (a) through (d) of section 2604 of the Low-
Income Home Energy Assistance Act of 1981 (42 U.S.C. 8623);
and
(2) $500,000,000 for fiscal year 2008, for making
allotments under section 2604(a) of the Low-Income Home
Energy Assistance Act of

[[Page S670]]

1981 (42 U.S.C. 8623(a)) that are made in such a manner as to
ensure that each State's allotment percentage is the
percentage the State would receive of funds allotted under
such section 2604(a) if the total amount appropriated for
fiscal year 2008 and available to carry out such section
2604(a) had been less than $1,975,000,000.
(b) Release of Funds.--Funds appropriated under subsection
(a)(2), and funds appropriated (but not obligated) prior to
the date of enactment of this Act for making payments under
section 2604(e) of such Act (42 U.S.C. 8623(e)), shall be
released to States not later than 30 days after the date of
enactment of this Act.

TITLE _--EMERGENCY DESIGNATION

SEC. 501. EMERGENCY DESIGNATION.

For purposes of Senate enforcement, all provisions of this
Act are designated as emergency requirements and necessary to
meet emergency needs pursuant to section 204 of S. Con. Res.
21 (110th Congress), the concurrent resolution on the budget
for fiscal year 2008.
______