S.Amdt. 5029

SA 5029. Mr. NELSON of Florida (for himself and Mr. Coleman)
submitted an amendment intended to be proposed to amendment SA 4983
proposed by Mr. Reid (for Mr. Dodd (for himself and Mr. Shelby)) to the
bill H.R. 3221, moving the United States toward greater energy
independence and security, developing innovative new technologies,
reducing carbon emissions, creating green jobs, protecting consumers,
increasing clean renewable energy production, and modernizing our
energy infrastructure, and to amend the Internal Revenue Code of 1986
to provide tax incentives for the production of renewable energy and
energy conservation; which was ordered to lie on the table; as follows:

On page 588, between lines 14 and 15, insert the following:

SEC. __. PENALTY-FREE WITHDRAWALS FROM RETIREMENT PLANS FOR
FORECLOSURE RECOVERY RELIEF FOR INDIVIDUALS
WITH MORTGAGES ON THEIR PRINCIPAL RESIDENCES.

(a) In General.--Section 72(t) of the Internal Revenue Code
of 1986 shall not apply to any qualified foreclosure recovery
distribution.
(b) Limitations.--
(1) In general.--For purposes of this section, in the case
of an individual who is an eligible taxpayer, the aggregate
amount of distributions received by the individual which may
be treated as qualified foreclosure recovery distributions
for any taxable year shall not exceed the lesser of--
(A) the individual's qualified mortgage expenditures for
the taxable year, or
(B) the excess (if any) of--
(i) $25,000, over
(ii) the aggregate amounts treated as qualified foreclosure
recovery distributions received by such individual for all
prior taxable years.
(2) Eligible taxpayer.--The term ``eligible taxpayer''
means, with respect to any taxable year, a taxpayer--
(A) with adjusted gross income for the taxable year not in
excess of $55,000 ($110,000 in the case of a joint return
under section 6013), and
(B) who provides certification to the Secretary of
participation in the Hope for Homeowners Program established
under section 1402 of the Housing and Economic Recovery Act
of 2008 or any other government or mortgage industry-
sponsored foreclosure prevention plan during such taxable
year.
(3) Treatment of plan distributions.--
(A) In general.--If a distribution to an individual would
(without regard to paragraph (1) or (2)) be a qualified
foreclosure recovery distribution, a plan shall not be
treated as violating any requirement of the Internal Revenue
Code of 1986 merely because the plan treats such distribution
as a qualified foreclosure recovery distribution, unless the
aggregate amount of such distributions from all plans
maintained by the employer (and any member of any controlled
group which includes the employer) to such individual exceeds
$25,000.
(B) Controlled group.--For purposes of subparagraph (A),
the term ``controlled group'' means any group treated as a
single employer under subsection (b), (c), (m), or (o) of
section 414 of such Code.
(c) Amount Distributed May Be Repaid.--
(1) In general.--Any individual who receives a qualified
foreclosure recovery distribution may, at any time during the
2-year period beginning on the day after the date on which
such distribution was received, make one or more
contributions in an aggregate amount not to exceed the amount
of such distribution to an eligible retirement plan of which
such individual is a beneficiary and to which a rollover
contribution of such distribution could be made under section
402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16) of the
Internal Revenue Code of 1986, as the case may be.
(2) Treatment of repayments of distributions from eligible
retirement plans other than iras.--For purposes of such Code,
if a contribution is made pursuant to paragraph (1) with
respect to a qualified foreclosure recovery distribution from
an eligible retirement plan other than an individual
retirement plan, then the taxpayer shall, to the extent of
the amount of the contribution, be treated as having received
the qualified foreclosure recovery distribution in an
eligible rollover distribution (as defined in section
402(c)(4) of such Code) and as having transferred the amount
to the eligible retirement plan in a direct trustee to
trustee transfer within 60 days of the distribution.
(3) Treatment of repayments for distributions from iras.--
For purposes of such Code, if a contribution is made pursuant
to paragraph (1) with respect to a qualified foreclosure
recovery distribution from an individual retirement plan (as
defined by section 7701(a)(37) of such Code), then, to the
extent of the amount of the contribution, the qualified
foreclosure recovery distribution shall be treated as a
distribution described in section 408(d)(3) of such Code and
as having been transferred to the eligible retirement plan in
a direct trustee to trustee transfer within 60 days of the
distribution.
(4) Application to eligible retirement plans.--
(A) In general.--Nothing in this section shall be treated
as requiring an eligible retirement plan to accept any
contributions described in this subsection.
(B) Qualification.--An eligible retirement plan shall not
be treated as violating any requirement of Federal law solely
by reason of the acceptance of contributions described in
this subparagraph.
(d) Definitions.--For purposes of this section--
(1) Qualified foreclosure recovery distribution.--The term
``qualified foreclosure recovery distribution'' means any
distribution to an individual from an eligible retirement
plan which is made--
(A) on or after the date of the enactment of this Act and
before January 1, 2010, and
(B) during a taxable year during which the individual has
qualifying mortgage expenditures.
(2) Qualifying mortgage expenditures.--
(A) In general.--The term ``qualifying mortgage
expenditures'' means any of the following expenditures:
(i) Payment of principal or interest on an applicable
mortgage.
(ii) Payment of costs paid or incurred in refinancing, or
modifying the terms of, an applicable mortgage.
(B) Applicable mortgage.--The term ``applicable mortgage''
means a mortgage which--
(i) was entered into after December 31, 2002, and before
the date of the enactment of this Act, and
(ii) constitutes a security interest in the principal
residence of the mortgagor.
(C) Joint filers.--In the case of married individuals
filing a joint return under section 6013 of the Internal
Revenue Code of

[[Page S5970]]

1986, the qualifying mortgage expenditures of the taxpayer
may be allocated between the spouses in such manner as they
elect.
(3) Eligible retirement plan.--The term ``eligible
retirement plan'' shall have the meaning given such term by
section 402(c)(8)(B) of such Code.
(4) Principal residence.--The term ``principal residence''
has the same meaning as when used in section 121 of such
Code.
(e) Income Inclusion Spread Over 2-Year Period for
Qualified Foreclosure Recovery Distributions.--
(1) In general.--In the case of any qualified foreclosure
recovery distribution, unless the taxpayer elects not to have
this subsection apply for any taxable year, any amount
required to be included in gross income for such taxable year
shall be so included ratably over the 2-taxable year period
beginning with such taxable year.
(2) Special rule.--For purposes of paragraph (1), rules
similar to the rules of subparagraph (E) of section
408A(d)(3) of the Internal Revenue Code of 1986 shall apply.
(f) Special Rules.--
(1) Exemption of distributions from trustee to trustee
transfer and withholding rules.--For purposes of sections
401(a)(31), 402(f), and 3405 of the Internal Revenue Code of
1986, qualified foreclosure recovery distributions shall not
be treated as eligible rollover distributions.
(2) Qualified foreclosure recovery distributions treated as
meeting plan distribution requirements.--For purposes of such
Code, a qualified foreclosure recovery distribution shall be
treated as meeting the requirements of sections
401(k)(2)(B)(i), 403(b)(7)(A)(ii), 403(b)(11), and
457(d)(1)(A) of such Code.
(3) Substantially equal periodic payments.--A qualified
foreclosure recovery distribution--
(A) shall be disregarded in determining whether a payment
is a part of a series of substantially equal periodic payment
under section 72(t)(2)(A)(iv) of such Code, and
(B) shall not constitute a change in substantially equal
periodic payments under section 72(t)(4) of such Code.
(g) Provisions Relating to Plan Amendments.--
(1) In general.--If this subsection applies to any
amendment to any plan or annuity contract, such plan or
contract shall be treated as being operated in accordance
with the terms of the plan during the period described in
paragraph (2)(B)(i).
(2) Amendments to which subsection applies.--
(A) In general.--This subsection shall apply to any
amendment to any plan or annuity contract which is made--
(i) pursuant to the provisions this section, or pursuant to
any regulation issued by the Secretary of the Treasury or the
Secretary of Labor under this section, and
(ii) on or before the last day of the first plan year
beginning on or after January 1, 2010, or such later date as
the Secretary of the Treasury may prescribe.

In the case of a governmental plan (as defined in section
414(d) of the Internal Revenue Code of 1986), clause (ii)
shall be applied by substituting the date which is 2 years
after the date otherwise applied under clause (ii).
(B) Conditions.--This subsection shall not apply to any
amendment unless--
(i) during the period--

(I) beginning on the date the legislative or regulatory
amendment described in subparagraph (A)(i) takes effect (or
in the case of a plan or contract amendment not required by
such legislative or regulatory amendment, any later effective
date specified by the plan), and
(II) ending on the date described in subparagraph (A)(ii)
(or, if earlier, the date the plan or contract amendment is
adopted),

the plan or contract is operated as if such plan or contract
amendment were in effect; and
(ii) such plan or contract amendment applies retroactively
for such period.

SEC. __. APPLICATION OF CONTINUOUS LEVY TO PROPERTY SOLD OR
LEASED TO THE FEDERAL GOVERNMENT.

(a) In General.--Paragraph (3) of section 6331(h) is
amended by striking ``goods'' and inserting ``property''.
(b) Effective Date.--The amendment made by this section
shall apply to levies approved after the date of the
enactment of this Act.

SEC. __. INVESTMENT OF OPERATING CASH.

Section 323 of title 31, United States Code, is amended to
read as follows:

``Sec. 323. Investment of operating cash

``(a) To manage United States cash, the Secretary of the
Treasury may invest any part of the operating cash of the
Treasury for not more than 90 days. The Secretary may invest
the operating cash of the Treasury in--
``(1) obligations of depositories maintaining Treasury tax
and loan accounts secured by pledged collateral acceptable to
the Secretary;
``(2) obligations of the United States Government; and
``(3) repurchase agreements with parties acceptable to the
Secretary.
``(b) Subsection (a) of this section does not require the
Secretary to invest a cash balance held in a particular
account.
``(c) The Secretary shall consider the prevailing market in
prescribing rates of interest for investments under
subsection (a)(1) of this section.
``(d)(1) The Secretary of the Treasury shall submit each
fiscal year to the appropriate committees a report detailing
the investment of operating cash under subsection (a) for the
preceding fiscal year. The report shall describe the
Secretary's consideration of risks associated with
investments and the actions taken to manage such risks.
``(2) For purposes of paragraph (1), the term `appropriate
committees' means the Committees on Financial Services and
Ways and Means of the House of Representatives and the
Committees on Finance and Banking, Housing, and Urban Affairs
of the Senate.''.

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