S.Amdt. 427

SA 427. Mr. DODD (for himself and Mr. Bingaman) submitted an
amendment intended to be proposed to amendment SA 98 proposed by Mr.
Inouye (for himself and Mr. Baucus) to the bill H.R. 1, making
supplemental appropriations for job preservation and creation,
infrastructure investment, energy efficiency and science, assistance to
the unemployed, and State and local fiscal stabilization, for fiscal
year ending September 30, 2009, and for other purposes; which was
ordered to lie on the table; as follows:

On page 570, after line 8, insert the following:

SEC. --. MODIFICATION OF RULES RELATING TO CANCELLATION OF
QUALIFIED PRINCIPAL RESIDENCE INDEBTEDNESS.

(a) Inclusion of All Mortgage Indebtedness.--Paragraph (2)
of section 108(h) is amended by inserting ``and home equity
indebtedness (within the meaning of section 163(h)(3)(C),
applied by inserting `as of the date such indebtedness was
secured by such residence' after `qualified residence' in
clause (i)(I) thereof and by substituting `$250,000
($125,000' for `$100,000 ($50,000' in clause (ii) thereof)''
before ``with respect to the principal residence of the
taxpayer''.
(b) Simplification of Rules Relating to Certain
Discharges.--Paragraph (3) of section 108(h) is amended--
(1) by striking ``or any other factor'' and all that
follows and inserting ``or is in any other way compensation
or in lieu of compensation.'', and
(2) by striking ``not related to taxpayer's financial
condition'' in the heading.
(c) Effective Date.--The amendments made by this section
shall apply to discharges of indebtedness made on or after
January 1, 2009.
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