S.Amdt. 572

SA 572. Mr. BAUCUS submitted an amendment intended to be proposed to
amendment SA 570 proposed by Mr. Reid (for Ms. Collins (for herself and
Mr. Nelson of Nebraska)) 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:

Beginning on page 421, line 16, strike all through page
422, line 13, and insert the following:
``(d) Definitions and Special Rules.--For purposes of this
section--
``(1) Eligible individual.--
``(A) In general.--The term `eligible individual' means any
individual other than--
``(i) any nonresident alien individual,
``(ii) 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, and

[[Page S2085]]

``(iii) an estate or trust.
``(B) Identification requirement.--
``(i) In general.--Except as provided in clause (ii), such
term shall not include any individual unless the requirements
of section 32(c)(1)(E) are met with respect to such
individual.
``(ii) Special rules for married individuals.--In the case
of--

``(I) a married individual (within the meaning of section
7703) filing a separate return, the requirements of clause
(i) with respect to such return shall not apply to the
individual's spouse, and
``(II) clause (i) shall not apply to a joint return where
at least 1 spouse was a member of the Armed Forces of the
United States at any time during the taxable year.

``(2) Earned income.--The term `earned income' has the
meaning given such term by section 32(c)(2), except that such
term shall not include net earnings from self-employment
which are not taken into account in computing taxable income.
For purposes of the preceding sentence, any amount excluded
from gross income by reason of section 112 shall be treated
as earned income which is taken into account in computing
taxable income for the taxable year.
``(3) Special rule for certain eligible individuals.--In
the case of any taxable year beginning in 2009, if an
eligible individual receives any amount as a pension or
annuity for service performed in the employ of the United
States or any State, or any instrumentality thereof, which is
not considered employment for purposes of chapter 21, the
amount of the credit allowed under subsection (a) (determined
without regard to subsection (c)) with respect to such
eligible individual shall be equal to the greater of--
``(A) the amount of the credit determined without regard to
this paragraph or subsection (c), or
``(B) $300 ($600 in the case of a joint return where both
spouses are eligible individuals described in this
paragraph).

If the amount of the credit is determined under subparagraph
(B) with respect to any eligible individual, the modified
adjusted gross income limitation under subsection (b) shall
not apply to such credit.
On page 484, strike line 3 and insert the following:
(c) Special Rule for Certain Trees and Vines.--Section
168(k) is amended by adding at the end the following new
paragraph:
``(5) Special rule for certain trees and vines.--For
purposes of this subsection, in the case of any qualified
property which is a tree or vine producing fruit, nuts, or
other crops, such property shall be treated as placed in
service in the year in which it is planted.''.
(d) Effective Dates.--
On page 485, line 21, strike ``(II)'' and insert ``(I)''.
On page 490, line 4, strike ``172(k)'' and insert
``172(b)(1)(H)''.
On page 490, strike lines 15 through 17, and insert the
following:

SEC. 1212. ELECTION TO RETROACTIVELY REVOKE S CORPORATION
STATUS.

(a) In General.--If an applicable small business
corporation elects under this section to revoke its election
under section 1362 of the Internal Revenue Code of 1986 to be
an S corporation, then, notwithstanding section 1362(d)(1)(C)
of such Code and subject to the provisions of this section--
(1) such revocation shall be effective as of the first day
of the first taxable year for which such corporation was
treated as an S corporation, and
(2) such Code shall be applied and administered for all
taxable years in the S corporation period as if such
corporation had not been an S corporation.
(b) Effects of Application of Section.--
(1) In general.--If a small business corporation elects to
have this section apply, the corporation and each person who
has been a shareholder of such corporation during the S
corporation period--
(A) shall recompute their liability for tax imposed by
chapter 1 of the Internal Revenue Code of 1986 for each
taxable year in the S corporation period as if the
corporation had been a C corporation, and
(B) shall make such adjustments (consistent with the
treatment of the corporation as a C corporation) to basis,
carryovers of credits and losses, and any other item as may
be required by the Secretary with respect to such period.
(2) Restriction on future s corporation elections.--For
purposes of section 1362(g) of such Code, the taxable year in
which the election under this section is made shall be
treated as the taxable year for which the termination of S
corporation status is effective.
(3) Certain adjustments not reversed.--If an applicable
small business company was a C corporation for any taxable
year before it became an S corporation, subsection (a)(2)
shall not apply to abate any tax imposed (or reverse any
other adjustment made) solely by reason of the conversion of
the corporation from C corporation status to S corporation
status.
(c) Rules Relating to Recomputed Tax Liability.--
(1) Waiver of limitations.--
(A) In general.--Notwithstanding the operation of any law
or rule of law (including res judicata), the period of
limitations for assessment or collection, or credit or
refund, of any tax imposed on any taxpayer by chapter 1 of
the Internal Revenue Code of 1986 (including any interest or
penalty) for any taxable year in the S corporation period for
which a recomputation of tax liability is required under
subsection (b)(1) shall not expire before the close of the 3-
year period beginning on the date the election is made under
this section.
(B) Net operating losses.--Notwithstanding subparagraph
(A), solely for purposes of determining the taxable years
from and to which any net operating loss arising in a taxable
year in the S corporation period may be carried, section
6511(d)(2) of such Code shall be applied without regard to
any extensions, including any extensions under section
6511(c) of such Code.
(2) Underpayment of tax.--If, for 1 or more taxable years
in the S corporation period--
(A) the tax determined under chapter 1 of such Code for
such taxable year with respect to any taxpayer, determined
after application of this section, exceeds
(B) the tax determined under chapter 1 of such Code for
such taxable year with respect to the taxpayer, determined
without regard to this section,

the taxpayer shall include with the election to have this
section apply payment of such amount, together with interest
on such amount (determined using the underpayment rate under
section 6621 of such Code for the period beginning on the due
date (without regard to extensions) for filing the return of
such tax imposed for such taxable year and ending on the date
of the election).
(d) Election.--
(1) In general.--An election under this section to revoke
an applicable small business corporation election under
section 1362 of the Internal Revenue Code of 1986--
(A) may only be made during the period beginning on the
date of the enactment of this Act and ending on December 31,
2009, and
(B) shall be made in such manner as the Secretary of the
Treasury or the Secretary's delegate prescribes.
(2) Conditions.--An election under this section shall not
be effective unless the applicable small business corporation
and all persons who are, or who have been, shareholders of
such corporation during the S corporation period consent to--
(A) such election,
(B) the extension of the period of limitations for
assessment and collection under subsection (c)(1)(A), and
(C) the application of rules relating to net operating loss
carryovers under subsection (c)(1)(B).
(e) Definitions and Special Rules.--For purposes of this
section--
(1) Applicable small business corporation.--The term
``applicable small business corporation'' means any small
business corporation which--
(A) elected to be an S corporation under section 1362 of
the Internal Revenue Code of 1986 at any time during the 5-
year period ending on the date of the enactment of this Act,
and
(B) had no more than 2 shareholders (determined without
regard to any aggregation rules under section 1361(c) of such
Code) at all times during such period during which the
corporation was an S corporation,
(2) S corporation period.--The term ``S corporation
period'' means, with respect to any applicable small business
corporation, the period of taxable years for which the
election under section 1362 of such Code to be an S
corporation was in effect before the application of this
section.
(3) Other definitions.--The terms ``S corporation'' and ``C
corporation'' shall have the same meaning as when used in
such Code.

SEC. 1213. EXCEPTION FOR TARP RECIPIENTS.

The provisions of , and amendments made by, this part shall
not apply to--
On page 493, beginning with line 13, strike all through
page 495, line 11, and insert the following:

PART IV--RULES RELATING TO DEBT INSTRUMENTS

SEC. 1231. DEFERRAL AND RATABLE INCLUSION OF INCOME ARISING
FROM INDEBTEDNESS DISCHARGED BY THE
REACQUISITION OF A DEBT INSTRUMENT.

(a) In General.--Section 108 (relating to income from
discharge of indebtedness) is amended by adding at the end
the following new subsection:
``(i) Deferral and Ratable Inclusion of Income Arising From
Indebtedness Discharged by the Reacquisition of a Debt
Instrument.--
``(1) In general.--At the election of the taxpayer, income
from the discharge of indebtedness in connection with the
reacquisition of a debt instrument after December 31, 2008,
and before January 1, 2011, shall be includible in gross
income ratably over the 5-taxable-year period beginning
with--
``(A) in the case of a reacquisition occurring in 2009, the
fifth taxable year following the taxable year in which the
reacquisition occurs, and
``(B) in the case of a reacquisition occurring in 2010, the
fourth taxable year following the taxable year in which the
reacquisition occurs.
``(2) Deferral of deduction for original issue discount in
debt for debt exchanges.--
``(A) In general.--If, as part of a reacquisition to which
paragraph (1) applies, any debt instrument is issued for the
debt instrument being reacquired (or is treated as so issued
under subsection (e)(4) and the regulations thereunder) and
there is any original issue discount determined under subpart
A of part V of subchapter P of this chapter with respect to
the debt instrument so issued--

[[Page S2086]]

``(i) except as provided in clause (ii), no deduction
otherwise allowable under this chapter shall be allowed to
the issuer of such debt instrument with respect to the
portion of such original issue discount which--

``(I) accrues before the 1st taxable year in the 5-taxable-
year period in which income from the discharge of
indebtedness attributable to the reacquisition of the debt
instrument is includible under paragraph (1), and
``(II) does not exceed the income from the discharge of
indebtedness with respect to the debt instrument being
reacquired, and

``(ii) the aggregate amount of deductions disallowed under
clause (i) shall be allowed as a deduction ratably over the
5-taxable-year period described in clause (i)(I).

If the amount of the original issue discount accruing before
such 1st taxable year exceeds the income from the discharge
of indebtedness with respect to the debt instrument being
reacquired, the deductions shall be disallowed in the order
in which the original issue discount is accrued.
``(B) Deemed debt for debt exchanges.--For purposes of
subparagraph (A), if any debt instrument is issued by an
issuer and the proceeds of such debt instrument are used
directly or indirectly by the issuer to reacquire a debt
instrument of the issuer, the debt instrument so issued shall
be treated as issued for the debt instrument being
reacquired. If only a portion of the proceeds from a debt
instrument are so used, the rules of subparagraph (A) shall
apply to the portion of any original issue discount on the
newly issued debt instrument which is equal to the portion of
the proceeds from such instrument used to reacquire the
outstanding instrument.
``(3) Debt instrument.--For purposes of this subsection,
the term `debt instrument' means a bond, debenture, note,
certificate, or any other instrument or contractual
arrangement constituting indebtedness (within the meaning of
section 1275(a)(1)).
``(4) Reacquisition.--For purposes of this subsection--
``(A) In general.--The term `reacquisition' means, with
respect to any debt instrument, any acquisition of the debt
instrument by--
``(i) the debtor which issued (or is otherwise the obligor
under) the debt instrument, or
``(ii) any person related to such debtor.

Such term shall also include the complete forgiveness of the
indebtedness by the holder of the debt instrument.
``(B) Acquisition.--The term `acquisition' shall, with
respect to any debt instrument, include an acquisition of the
debt instrument for cash, the exchange of the debt instrument
for another debt instrument (including an exchange resulting
from a modification of the debt instrument), the exchange of
the debt instrument for corporate stock or a partnership
interest, and the contribution of the debt instrument to
capital.
``(5) Other definitions and rules.--For purposes of this
subsection--
``(A) Related person.--The determination of whether a
person is related to another person shall be made in the same
manner as under subsection (e)(4).
``(B) Election.--
``(i) In general.--An issuer of a debt instrument shall
make the election under this subsection with respect to any
debt instrument by clearly identifying such debt instrument
on the issuer's records as an instrument to which the
election applies before the close of the day on which the
reacquisition of the debt instrument occurs (or such other
time as the Secretary may prescribe). Such election, once
made, is irrevocable.
``(ii) Pass through entities.--In the case of a
partnership, S corporation, or other pass through entity, the
election under this subsection shall be made by the
partnership, the S corporation, or other entity involved.
``(C) Coordination with other exclusions.--If a taxpayer
elects to have this subsection apply to a debt instrument,
subparagraphs (A), (B), (C), (D), and (E) of subsection
(a)(1) shall not apply to the income from the discharge of
such indebtedness for the taxable year of the election or any
subsequent taxable year.
``(D) Acceleration of deferred items.--In the case of the
death of the taxpayer, the liquidation or sale of
substantially all the assets of the taxpayer (including in a
title 11 or similar case), the cessation of business by the
taxpayer, or similar circumstances, any item of income or
deduction which is deferred under this subsection (and has
not previously been taken into account) shall be taken into
account in the taxable year in which such event occurs (or in
the case of a title 11 case, the day before the petition is
filed).
``(6) Authority to prescribe regulations.--The Secretary
may prescribe such rules and regulations as may be necessary
or appropriate for purposes of applying this subsection.''.
(b) Effective Date.--The amendments made by this section
shall apply to discharges in taxable years ending after
December 31, 2008.

SEC. 1232. MODIFICATIONS OF RULES FOR ORIGINAL ISSUE DISCOUNT
ON CERTAIN HIGH YIELD OBLIGATIONS.

(a) Suspension of Special Rules.--Section 163(e)(5)
(relating to special rules for original issue discount on
certain high yield obligations) is amended by redesignating
subparagraph (F) as subparagraph (G) and by inserting after
subparagraph (E) the following new subparagraph:
``(F) Suspension of application of paragraph.--
``(i) Temporary suspension.--

``(I) In general.--This paragraph shall not apply to any
applicable high yield discount obligation issued after August
31, 2008, and before January 1, 2010. The preceding sentence
shall not apply to any obligation the interest on which is
interest described in section 871(h)(4) (without regard to
subparagraph (D) thereof) or to any obligation issued to a
related person (within the meaning of section 108(e)(4)).

``(ii) Secretarial authority to suspend application.--The
Secretary may suspend the application of this paragraph with
respect to debt instruments issued after December 31, 2009,
if the Secretary determines that such suspension is
appropriate in light of distressed conditions in the debt
capital markets.''.
(b) Interest Rate Used in Determining High Yield
Obligations.--The last sentence of section 163(i)(1) is
amended--
(1) by inserting ``(i)'' after ``regulation'', and
(2) by inserting ``, or (ii) permit, on a temporary basis,
a rate to be used with respect to any debt instrument which
is higher than the applicable Federal rate if the Secretary
determines that such rate is appropriate in light of
distressed conditions in the debt capital markets'' before
the period at the end.
(c) Effective Date.--
(1) Suspension.--The amendments made by subsection (a)
shall apply to obligations issued after August 30, 2008, in
taxable years ending after such date.
(2) Interest rate authority.--The amendments made by
subsection (b) shall apply to obligations issued after the
date of the enactment of this Act, in taxable years ending
after such date.

SEC. 1233. 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.
On page 521, between lines 4 and 5, insert the following:

PART X--TREATMENT OF LIMITATIONS ON LOSSES AFTER CERTAIN OWNERSHIP
CHANGES

SEC. 1291. TREATMENT OF CERTAIN OWNERSHIP CHANGES FOR
PURPOSES OF LIMITATIONS ON NET OPERATING LOSS
CARRYFORWARDS AND CERTAIN BUILT-IN LOSSES.

(a) In General.--Section 382 is amended by adding at the
end the following new subsection:
``(n) Special Rule for Certain Ownership Changes.--
``(1) In general.--The limitation contained in subsection
(a) shall not apply in the case of an ownership change
which--
``(A) is pursuant to a restructuring plan of a taxpayer
required under a loan agreement or a commitment for a line of
credit entered into with the Department of the Treasury under
the Emergency Economic Stabilization Act of 2008, and
``(B) is intended to result in a rationalization of the
costs, capitalization, and capacity with respect to the
manufacturing workforce of, and suppliers to, the taxpayer
and its subsidiaries.
``(2) Subsequent acquisitions.--Paragraph (1) shall not
apply in the case of any subsequent ownership change unless
such ownership change is described in such paragraph.
``(3) Limitation based on control in corporation.--
``(A) In general.--Paragraph (1) shall not apply in the
case of any ownership change if, immediately after such
ownership change, any person owns stock of the old loss
corporation possessing 50 percent or more of the total
combined voting power of all classes of stock entitled to
vote, or of the total value of the stock of such corporation.
``(B) Treatment of related persons.--
``(i) In general.--Related persons shall be treated as a
single person for purposes of this paragraph.
``(ii) Related persons.--For purposes of clause (i), a
person shall be treated as related to another person if--

``(I) such person bears a relationship to such other person
described in section 267(b) or 707(b), or
``(II) such persons are members of a group of persons
acting in concert.''.

(b) Effective Date.--The amendment made by this section
shall apply to ownership changes after the date of the
enactment of this Act.

[[Page S2087]]

Beginning on page 555, line 11, strike all through page
556, line 22, and insert the following:

SEC. 1503. TEMPORARY MODIFICATION OF ALTERNATIVE MINIMUM TAX
LIMITATIONS ON TAX-EXEMPT BONDS.

(a) Interest on Private Activity Bonds Issued During 2009
and 2010 Not Treated as Tax Preference Item.--Subparagraph
(C) of section 57(a)(5) is amended by adding at the end a new
clause:
``(vi) Exception for bonds issued in 2009 and 2010.--

``(I) In general.--For purposes of clause (i), the term
`private activity bond' shall not include any bond issued
after December 31, 2008, and before January 1, 2011.
``(II) Treatment of refunding bonds.--For purposes of
subclause (I), a refunding bond (whether a current or advance
refunding) shall be treated as issued on the date of the
issuance of the refunded bond (or in the case of a series of
refundings, the original bond).
``(III) Exception for certain refunding bonds.--Subclause
(II) shall not apply to any refunding bond which is issued to
refund any bond which was issued after December 31, 2003, and
before January 1, 2009.''.

(b) No Adjustment to Adjusted Current Earnings for Interest
on Tax-Exempt Bonds Issued During 2009 and 2010.--
Subparagraph (B) of section 56(g)(4) is amended by adding at
the end the following new clause:
``(iv) Tax exempt interest on bonds issued in 2009 and
2010.--

``(I) In general.--Clause (i) shall not apply in the case
of any interest on a bond issued after December 31, 2008, and
before January 1, 2011.
``(II) Treatment of refunding bonds.--For purposes of
subclause (I), a refunding bond (whether a current or advance
refunding) shall be treated as issued on the date of the
issuance of the refunded bond (or in the case of a series of
refundings, the original bond).
``(III) Exception for certain refunding bonds.--Subclause
(II) shall not apply to any refunding bond which is issued to
refund any bond which was issued after December 31, 2003, and
before January 1, 2009.''.

(c) Effective Date.--The amendments made by this section
shall apply to obligations issued after December 31, 2008.
On page 587, after line 23, add the following:

SEC. 1904. DETERMINATION OF STANDARD MILEAGE RATE FOR
CHARITABLE CONTRIBUTIONS DEDUCTION.

(a) In General.--Subsection (i) of section 170 is amended
to read as follows:
``(i) Standard Mileage Rate for Use of Passenger
Automobile.--
``(1) In general.--For purposes of computing the deduction
under this section for use of a passenger automobile, the
standard mileage rate shall be 14 cents per mile.
``(2) Special rule for 2009 and 2010.--For miles traveled
after the date of the enactment of the American Recovery and
Reinvestment Tax Act of 2009 and before January 1, 2011, the
standard mileage rate shall be the rate determined by the
Secretary, which rate shall not be less than the standard
mileage rate used for purposes of section 213.''.
(b) Effective Date.--The amendment made by this section
shall apply to miles traveled after the date of the enactment
of this Act.

SEC. 1905. EXCLUSION FROM GROSS INCOME FOR CHARITABLE MILEAGE
REIMBURSEMENTS.

(a) In General.--Part III of subchapter B of chapter 1 is
amended by adding at the end the following new section:

``SEC. 139C. CHARITABLE MILEAGE REIMBURSEMENT.

``(a) In General.--In the case of an individual, gross
income shall not include amounts received from an
organization described in section 170(c)(2) as reimbursement
of operating expenses with respect to the use of a passenger
automobile for the benefit of such organization.
``(b) Limitation.--The amount excluded from gross income
under subsection (a) shall not exceed the product of the
standard mileage rate used for purposes of section 162
multiplied by the number of miles traveled for which such
reimbursement is made.
``(c) Application to Volunteer Services Only.--Subsection
(a) shall not apply with respect to any expenses relating to
the performance of services for compensation.
``(d) No Double Benefit.--A taxpayer may not claim a
deduction or credit under any other provision of this title
with respect to reimbursements excluded from income under
subsection (a).
``(e) Exemption From Reporting Requirements.--Section 6041
shall not apply with respect to reimbursements excluded from
income under subsection (a).
``(f) Maintenance of Records.--For purposes of this
section, no exclusion shall be allowed under subsection (a)
for any reimbursement unless with respect to such
reimbursement the taxpayer meets substantiation requirements
similar to the requirements of section 274(d).
``(g) Termination.--This section shall not apply to any
miles traveled after December 31, 2010.''.
(b) Conforming Amendment.--The table of sections for part
III of subchapter B of chapter 1 is amended by adding at the
end the following new item:

``Sec. 139C. Charitable mileage reimbursement.''.

(c) Effective Date.--The amendments made by this section
shall apply to miles traveled after the date of the enactment
of this Act.

SEC. 1906. SPECIAL RULES FOR MODIFICATION OR DISPOSITION OF
QUALIFIED MORTGAGES OR DISPOSITION OF
FORECLOSURE PROPERTY BY REAL ESTATE MORTGAGE
INVESTMENT CONDUITS.

(a) In General.--If a REMIC (as defined in section 860D(a)
of the Internal Revenue Code of 1986) modifies the terms of
or disposes of a troubled asset under the Troubled Asset
Relief Program established by the Secretary of the Treasury
under section 101(a) of the Emergency Economic Stabilization
Act of 2008--
(1) such modification or disposition shall not be treated
as a prohibited transaction under section 860F(a)(2) of such
Code, and
(2) for purposes of part IV of subchapter M of chapter 1 of
such Code--
(A) an interest in the REMIC shall not fail to be treated
as a regular interest (as defined in section 860G(a)(1) of
such Code), nor shall such newly modified loan fail to be
treated as a qualified mortgage solely because of such
modification or disposition, and
(B) any proceeds resulting from such modification or
disposition shall be treated as amounts received under
qualified mortgages.
(b) Effective Date.--This section shall apply to
modifications and dispositions after the date of the
enactment of this Act, in taxable years ending on or after
such date.

SEC. 1907. EXTENSION OF REDUCTION IN RATE OF TAX ON QUALIFIED
TIMBER GAIN OF CORPORATIONS.

(a) In General.--Section 1201(b)(1) is amended by striking
``1 year after such date'' and inserting ``3 years after such
date''.
(b) Conforming Amendment.--Subparagraph (B) of section
1201(b)(3) is amended by striking ``1 year after such date''
and inserting ``3 years after such date''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years ending after the date of the
enactment of this Act.

SEC. 1908. EXTENSION OF TIMBER REIT MODERNIZATION AND
MODIFICATION OF PROHIBITED TRANSACTION RULES
FOR TIMBER PROPERTY.

(a) In General.--Paragraph (8) of section 856(c) is
amended--
(1) by striking ``the taxpayer's first taxable year'' and
inserting ``the taxpayer's third taxable year'', and
(2) by striking ``1 year after such date'' and inserting
``3 years after such date''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years ending after the date of the
enactment of this Act.

SEC. 1909. EXTENSION OF QUALIFICATION OF MINERAL ROYALTY
INCOME FOR TIMBER REITS.

(a) In General.--Section 856(c)(2)(I) is amended by
inserting ``, second, or third'' after ``the first''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years ending after the date of the
enactment of this Act.

SEC. 1910. FORMERLY HOMELESS YOUTH WHO ARE STUDENTS QUALIFIED
FOR PURPOSES OF LOW INCOME HOUSING TAX CREDIT.

(a) In General.--Clause (i) of section 42(i)(3)(D) is
amended by redesignating subclauses (II) and (III) as
subclauses (III) and (IV), respectively, and by inserting
after subclause (I) the following new subclause:

``(II) a student who previously was a homeless child or
youth (as defined by section 725 of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11434a)),''.

(b) Effective Date.--The amendments made by subsection (a)
shall apply to determinations made before, on, or after the
date of the enactment of this Act.

SEC. 1911. DECREASED REQUIRED ESTIMATED TAX PAYMENTS IN 2009
FOR CERTAIN SMALL BUSINESSES.

Paragraph (1) of section 6654(d) is amended by adding at
the end the following new subparagraph:
``(D) Special rule for 2009.--
``(i) In general.--Notwithstanding subparagraph (C), in the
case of any taxable year beginning in 2009, clause (ii) of
subparagraph (B) shall be applied to any qualified individual
by substituting `90 percent' for `100 percent'.
``(ii) Qualified individual.--For purposes of this
subparagraph, the term `qualified individual' means any
individual if--

``(I) the adjusted gross income shown on the return of such
individual for the preceding taxable year is less than
$500,000, and
``(II) such individual certifies that more than 50 percent
of the gross income shown on the return of such individual
for the preceding taxable year was income from a small
business.

A certification under subclause (II) shall be in such form
and manner and filed at such time as the Secretary may by
regulations prescribe.
``(iii) Income from a small business.--For purposes of
clause (ii), income from a small business means, with respect
to any individual, income from a trade or business the
average number of employees of which was less than 500
employees for the calendar year ending with or within the
preceding taxable year of the individual.
``(iv) Separate returns.--In the case of a married
individual (within the meaning of section 7703) who files a
separate return for the taxable year for which the amount of
the installment is being determined, clause (ii)(I) shall be
applied by substituting `$250,000' for `$500,000'.
``(v) Estates and trusts.--In the case of an estate or
trust, adjusted gross income

[[Page S2088]]

shall be determined as provided in section 67(e).''.

SEC. 1912. AVIATION PROGRAMS.

(a) Short Title.--This section may be cited as the
``Federal Aviation Administration Extension Act of 2009''.
(b) Extension of Aviation Programs for Fy 2009.--
(1) Extension of aviation taxes.--The Internal Revenue Code
of 1986 is amended by striking ``March 31, 2009'' and
inserting ``September 30, 2009'' each place it appears in
each of the following sections:
(A) Section 4081(d)(2)(B).
(B) Section 4261(j)(1)(A)(ii).
(C) Section 4271(d)(1)(A)(ii).
(2) Extension of expenditure authority.--
(A) Such Code is amended by striking ``April 1, 2009'' each
place it appears and inserting ``October 1, 2009'' in each of
the following sections:
(i) Section 9502(d)(1).
(ii) Section 9502(e)(2).
(B) Paragraph (1) of section 9502(d) of such Code is
amended by inserting ``or the Federal Aviation Administration
Extension Act of 2009'' before the semicolon at the end of
subparagraph (A).
(3) Extension of airport improvement program.--
(A) Paragraph (6) of section 48103 of title 49, United
States Code, is amended to read as follows:
``(6) $3,900,000,000 for fiscal year 2009.''.
(B) Section 47104(c) of such title is amended by striking
``March 31, 2009,'' and inserting ``September 30, 2009,''.
(4) Extension of expiring authorities.--
(A) Title 49, United States Code, is amended by striking
the date specified in each of the following sections and
inserting ``September 30, 2009'':
(i) Section 40117(l)(7).
(ii) Section 44303(b).
(iii) Section 47107(s)(3).
(iv) Section 47141(f).
(v) Section 49108.
(B) Section 44302(f)(1) of such title is amended--
(i) by striking ``March 31, 2009'' and inserting
``September 30, 2009''; and
(ii) by striking ``May 31, 2009'' and inserting ``December
31, 2009''.
(C) Section 47115(j) of such title is amended by striking
``2008, and the portion of fiscal year 2009 ending before
April 1, 2009,'' and inserting ``2009,''.
(D) Section 161 of the Vision 100--Century of Aviation
Reauthorization Act (49 U.S.C. 47109 note) is amended by
striking ``before April 1, 2009,''.
(E) Section 186(d) of such Act (117 Stat. 2518) is amended
by striking ``2008, and for the portion of fiscal year 2009
ending before April 1, 2009,'' and inserting ``2009,''.
(c) Effective Date.--The amendments made by this section
shall take effect on April 1, 2009.

SEC. 1913. ENHANCED CONGRESSIONAL OVERSIGHT.

(a) Plan.--Not later than 30 days after the date of
enactment of this Act, each authorizing committee of the
Senate with jurisdiction over spending included in this
division and division A shall prepare and publicly post on
their website a plan detailing--
(1) spending or programmatic language contained in this
division and division A which falls under their jurisdiction;
and
(2) plans for oversight of spending under the jurisdiction
of the committee, including congressional hearings.
(b) Implementation Reports.--Not later than 6 months and 1
year after the date of enactment of his Act, each committee
described in subsection (a) shall prepare and post on their
website a progress report towards fulfilling components of
their oversight plan required by subsection (a) as well as
any modifications to that plan.
(c) Joint Economic Committee.--Each Federal department or
agency that receives and administers funding under this
division and division A shall provide information and data on
their implementation of this division and division A to each
committee of the Senate with jurisdiction over such funding
under this division and division A and to the Committee on
Joint Economics.

SEC. 1914. EQUAL CREDIT AVAILABILITY.

Section 44(f) of the Federal Deposit Insurance Act (12
U.S.C. 1831u(f)) is amended by adding at the end the
following:
``(3) Equal credit availability.--In the case of a person
or government entity (other than a depository institution
that is subject to paragraph (1) or (2)) in that State, the
maximum annual percentage rate of interest shall be the
greater of--
``(A) the maximum annual percentage rate allowed by the
laws of that State; or
``(B) 17 percent.''.
On page 601, line 6, insert ``, except that such
compensation is not required to be paid to an individual who
is receiving stipends or other training allowances'' after
``1998''.
On page 601, line 17, insert ``less any deductible income
as determined under State law'' after ``year''.
On page 619, line 13, insert ``(or another person pays on
behalf of such individual)'' after ``pays''.
On page 692, between lines 7 and 8, insert the following:
(g) Impact on Trust Funds.--The Board of Trustees of the
Federal Hospital Insurance Trust Fund under section 1817 of
the Social Security Act (42 U.S.C. 1395i) and the Federal
Supplementary Medical Insurance Trust Fund under section 1841
of such Act (42 U.S.C. 1395t) shall include in the annual
report submitted in 2010 under subsection (b)(2) of such
sections 1817 and 1841 a description of the estimated short-
term and long-term impact that the provisions of, and
amendments made by, this subtitle will have on such Trust
Funds.
On page 707, between lines 21 and 22, insert the following:
``(D) For purposes of this paragraph, the term `reporting
period' means, with respect to a fiscal year, any period (or
periods), with respect to the fiscal year, as specified by
the Secretary.''.
On page 716, between lines 18 and 19, insert the following:

SEC. 4204A. CHANGE IN DATE OF ANNUAL MEDPAC REPORT.

(a) In General.--Section 1805(b)(1)(C) of the Social
Security Act (42 U.S.C. 1395b-6) is amended by striking
``March 1'' and inserting ``March 15''.
(b) Effective Date.--The amendment made by subsection (a)
takes effect on April 1, 2009, and applies to reports
submitted for 2010 and calendar years thereafter.
On page 726, line 7, insert ``(or to an employer or
facility to which such provider has assigned payments)''
after ``such provider''.
On page 737, line 18, insert ``and, for purposes of the
application of this section to the District of Columbia,
payments under such part shall be deemed to be made on the
basis of the FMAP'' after ``et. seq.)''.
On page 738, line 11, insert ``(including as such standards
were proposed to be in effect under a State law enacted but
not effective as of such date or a State plan amendment or
waiver request under title XIX of such Act that was pending
approval on such date)'' after ``2008''.
On page 740, strike lines 6 through 12, and insert the
following:
(ii) on the basis of a restriction that was directed to be
made under State law as in effect on July 1, 2008, and would
have been in effect as of such date, but for a delay in the
effective date of a waiver under section 1115 of such Act
with respect to such restriction.
On page 753, between lines 2 and 3, insert the following:

SEC. 5006. CHIP ALLOTMENT ADJUSTMENTS.

Effective as if included in the enactment of the Children's
Health Insurance Program Reauthorization Act of 2009, section
2104(m) of the Social Security Act, as added by section 102
of the Children's Health Insurance Program Reauthorization
Act of 2009, is amended--
(1) by redesignating paragraph (7) as paragraph (8); and
(2) by inserting after paragraph (6), the following:
``(7) Adjustment of fiscal years 2009 and 2010 allotments
to account for changes in projected spending for certain
previously approved expansion programs.--In the case of one
of the 50 States or the District of Columbia that has an
approved State plan amendment effective January 1, 2006, to
provide child health assistance through the provision of
benefits under the State plan under title XIX for children
from birth through age 5 whose family income does not exceed
200 percent of the poverty line, the Secretary shall increase
the allotments otherwise determined for the State for fiscal
years 2009 and 2010 under paragraphs (1) and (2)(A)(i) in
order to take into account changes in the projected total
Federal payments to the State under this title for such
fiscal years that are attributable to the provision of such
assistance to such children.''.

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