Tax Relief and Minimum Wage Act of 2006 - Amends the Internal Revenue Code to extend through 2007 various provisions relating to business investment and economic development, education, research, health care, environmental remediation, and investment in the District of Columbia, Puerto Rico, and American Samoa. Revises the system of tax incentives for investment in New York Liberty Zone property.
Modifies tax administration provisions relating to awards for whistleblowers, frivolous tax filings, authority of the Internal Revenue Service to disclose tax return information, and refund rules for aviation kerosene.
Authorizes the issuance of tax-exempt zone academy bonds and rural renaissance bonds. Allows expensing of mine safety equipment and a tax credit for mine rescue team training costs.
Allows a taxpayer election to deduct certain gain from timber sales.
Suspends until 2008 the disallowance of the tax deduction for business travel expenses of a spouse.
Amends the Fair Labor Standards Act of 1938 to increase the federal minimum wage rate. Applies such increased wage rate to the Commonwealth of the Northern Mariana Islands.
Surface Mining Control and Reclamation Act Amendments of 2006 - Amends the Surface Mining Control and Reclamation Act of 1977 to: (1) reauthorize the Abandoned Mine Reclamation Fund (AMR Fund) through FY2021; (2) reduce rates of reclamation fees payable by mine operators to the AMR Fund; and (3) revise allocations of payments to states for reclamation of abandoned mines.
Amends the Internal Revenue Code with respect to liability of mine operators for payment of health care premiums of retired miners.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 3829 Introduced in Senate (IS)]
109th CONGRESS
2d Session
S. 3829
To extend and expand certain tax relief provisions and to increase the
Federal minimum wage, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
August 3, 2006
Ms. Stabenow (for herself, Mr. Menendez, Mr. Kerry, Mrs. Clinton, Mr.
Obama, Mr. Leahy, Mr. Johnson, Mr. Lieberman, Mr. Durbin, Mr. Biden,
Mr. Dayton, Mrs. Feinstein, and Mr. Levin) introduced the following
bill; which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To extend and expand certain tax relief provisions and to increase the
Federal minimum wage, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Tax Relief and
Minimum Wage Act of 2006''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
(c) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; reference; table of contents.
TITLE I--EXTENSION AND EXPANSION OF CERTAIN TAX RELIEF PROVISIONS
Subtitle A--Extension and Modification of Certain Provisions
Sec. 101. Deduction for qualified tuition and related expenses.
Sec. 102. Extension and modification of new markets tax credit.
Sec. 103. Election to deduct State and local general sales taxes.
Sec. 104. Extension and modification of research credit.
Sec. 105. Work opportunity tax credit and welfare-to-work credit.
Sec. 106. Election to include combat pay as earned income for purposes
of earned income credit.
Sec. 107. Extension and modification of qualified zone academy bonds.
Sec. 108. Above-the-line deduction for certain expenses of elementary
and secondary school teachers.
Sec. 109. Extension and expansion of expensing of brownfields
remediation costs.
Sec. 110. Tax incentives for investment in the District of Columbia.
Sec. 111. Indian employment tax credit.
Sec. 112. Accelerated depreciation for business property on Indian
reservations.
Sec. 113. Fifteen-year straight-line cost recovery for qualified
leasehold improvements and qualified
restaurant property.
Sec. 114. Cover over of tax on distilled spirits.
Sec. 115. Parity in application of certain limits to mental health
benefits.
Sec. 116. Corporate donations of scientific property used for research
and of computer technology and equipment.
Sec. 117. Availability of medical savings accounts.
Sec. 118. Taxable income limit on percentage depletion for oil and
natural gas produced from marginal
properties.
Sec. 119. American Samoa economic development credit.
Sec. 120. Restructuring of New York Liberty Zone tax credits.
Sec. 121. Extension of bonus depreciation for certain qualified Gulf
Opportunity Zone property.
Sec. 122. Authority for undercover operations.
Sec. 123. Disclosures of certain tax return information.
Subtitle B--Other Provisions
Sec. 131. Deduction allowable with respect to income attributable to
domestic production activities in Puerto
Rico.
Sec. 132. Credit for prior year minimum tax liability made refundable
after period of years.
Sec. 133. Returns required in connection with certain options.
Sec. 134. Partial expensing for advanced mine safety equipment.
Sec. 135. Mine rescue team training tax credit.
Sec. 136. Whistleblower reforms.
Sec. 137. Frivolous tax submissions.
Sec. 138. Addition of meningococcal and human papillomavirus vaccines
to list of taxable vaccines.
Sec. 139. Clarification of taxation of certain settlement funds made
permanent.
Sec. 140. Modification of active business definition under section 355
made permanent.
Sec. 141. Revision of State veterans limit made permanent.
Sec. 142. Capital gains treatment for certain self-created musical
works made permanent.
Sec. 143. Reduction in minimum vessel tonnage which qualifies for
tonnage tax made permanent.
Sec. 144. Modification of special arbitrage rule for certain funds made
permanent.
Sec. 145. Great Lakes domestic shipping to not disqualify vessel from
tonnage tax.
Sec. 146. Use of qualified mortgage bonds to finance residences for
veterans without regard to first-time
homebuyer requirement.
Sec. 147. Exclusion of gain from sale of a principal residence by
certain employees of the intelligence
community.
Sec. 148. Treatment of coke and coke gas.
Sec. 149. Sale of property by judicial officers.
Sec. 150. Premiums for mortgage insurance.
Sec. 151. Modification of refunds for kerosene used in aviation.
Sec. 152. Deduction for qualified timber gain.
Sec. 153. Credit to holders of rural renaissance bonds.
Sec. 154. Restoration of deduction for travel expenses of spouse, etc.
accompanying taxpayer on business travel.
Sec. 155. Technical corrections.
TITLE II--INCREASE IN FEDERAL MINIMUM WAGE
Sec. 201. Minimum wage.
Sec. 202. Applicability of minimum wage to the Commonwealth of the
Northern Mariana Islands.
TITLE III--SURFACE MINING CONTROL AND RECLAMATION ACT AMENDMENTS OF
2006
Sec. 301. Short title.
Subtitle A--Mining Control and Reclamation
Sec. 311. Abandoned Mine Reclamation Fund and purposes.
Sec. 312. Reclamation fee.
Sec. 313. Objectives of Fund.
Sec. 314. Reclamation of rural land.
Sec. 315. Liens.
Sec. 316. Certification.
Sec. 317. Remining incentives.
Sec. 318. Extension of limitation on application of prohibition on
issuance of permit.
Sec. 319. Tribal regulation of surface coal mining and reclamation
operations.
Subtitle B--Coal Industry Retiree Health Benefit Act
Sec. 321. Certain related persons and successors in interest relieved
of liability if premiums prepaid.
Sec. 322. Transfers to funds; premium relief.
Sec. 323. Other provisions.
TITLE I--EXTENSION AND EXPANSION OF CERTAIN TAX RELIEF PROVISIONS
Subtitle A--Extension and Modification of Certain Provisions
SEC. 101. DEDUCTION FOR QUALIFIED TUITION AND RELATED EXPENSES.
(a) In General.--Section 222(e) is amended by striking ``2005''and
inserting ``2007''.
(b) Conforming Amendments.--Section 222(b)(2)(B) is amended--
(1) by striking ``a taxable year beginning in 2004 or
2005'' and inserting ``any taxable year beginning after 2003'',
and
(2) by striking ``2004 and 2005'' in the heading and
inserting ``After 2003''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2005.
SEC. 102. EXTENSION AND MODIFICATION OF NEW MARKETS TAX CREDIT.
(a) Extension.--Section 45D(f)(1)(D) is amended by striking ``and
2007'' and inserting ``, 2007, and 2008''.
(b) Regulations Regarding Non-Metropolitan Counties.--Section
45D(i) is amended by striking ``and'' at the end of paragraph (4), by
striking the period at the end of paragraph (5) and inserting ``,
and'', and by adding at the end the following new paragraph:
``(6) which ensure that non-metropolitan counties receive a
proportional allocation of qualified equity investments.''.
(c) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
SEC. 103. ELECTION TO DEDUCT STATE AND LOCAL GENERAL SALES TAXES.
(a) In General.--Section 164(b)(5)(I) is amended by striking
``2006'' and inserting ``2008''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2005.
SEC. 104. EXTENSION AND MODIFICATION OF RESEARCH CREDIT.
(a) Extension.--
(1) In general.--Section 41(h)(1)(B) is amended by striking
``2005'' and inserting ``2007''.
(2) Conforming amendment.--Section 45C(b)(1)(D) is amended
by striking ``2005'' and inserting ``2007''.
(3) Effective date.--The amendments made by this subsection
shall apply to amounts paid or incurred after December 31,
2005.
(b) Increase in Rates of Alternative Incremental Credit.--
(1) In general.--Subparagraph (A) of section 41(c)(4)
(relating to election of alternative incremental credit) is
amended--
(A) by striking ``2.65 percent'' and inserting ``3
percent'',
(B) by striking ``3.2 percent'' and inserting ``4
percent'', and
(C) by striking ``3.75 percent'' and inserting ``5
percent''.
(2) Effective date.--The amendments made by this subsection
shall apply to amounts paid or incurred after December 31,
2006.
(c) Alternative Simplified Credit for Qualified Research
Expenses.--
(1) In general.--Subsection (c) of section 41 (relating to
base amount) is amended by redesignating paragraphs (5) and (6)
as paragraphs (6) and (7), respectively, and by inserting after
paragraph (4) the following new paragraph:
``(5) Election of alternative simplified credit.--
``(A) In general.--At the election of the taxpayer,
the credit determined under subsection (a)(1) shall be
equal to 12 percent of so much of the qualified
research expenses for the taxable year as exceeds 50
percent of the average qualified research expenses for
the 3 taxable years preceding the taxable year for
which the credit is being determined.
``(B) Special rule in case of no qualified research
expenses in any of 3 preceding taxable years.--
``(i) Taxpayers to which subparagraph
applies.--The credit under this paragraph shall
be determined under this subparagraph if the
taxpayer has no qualified research expenses in
any one of the 3 taxable years preceding the
taxable year for which the credit is being
determined.
``(ii) Credit rate.--The credit determined
under this subparagraph shall be equal to 6
percent of the qualified research expenses for
the taxable year.
``(C) Election.--An election under this paragraph
shall apply to the taxable year for which made and all
succeeding taxable years unless revoked with the
consent of the Secretary. An election under this
paragraph may not be made for any taxable year to which
an election under paragraph (4) applies.''.
(2) Coordination with election of alternative incremental
credit.--
(A) In general.--Section 41(c)(4)(B) (relating to
election) is amended by adding at the end the
following: ``An election under this paragraph may not
be made for any taxable year to which an election under
paragraph (5) applies.''.
(B) Transition rule.--In the case of an election
under section 41(c)(4) of the Internal Revenue Code of
1986 which applies to the taxable year which includes
the date of the enactment of this Act, such election
shall be treated as revoked with the consent of the
Secretary of the Treasury if the taxpayer makes an
election under section 41(c)(5) of such Code (as added
by subsection (c)) for such year.
(3) Effective date.--The amendments made by this subsection
shall apply to amounts paid or incurred after December 31,
2006.
SEC. 105. WORK OPPORTUNITY TAX CREDIT AND WELFARE-TO-WORK CREDIT.
(a) In General.--Sections 51(c)(4)(B) and 51A(f) are each amended
by striking ``2005'' and inserting ``2007''.
(b) Eligibility of Ex-Felons Determined Without Regard to Family
Income.--Paragraph (4) of section 51(d) is amended by adding ``and'' at
the end of subparagraph (A), by striking ``, and'' at the end of
subparagraph (B) and inserting a period, and by striking all that
follows subparagraph (B).
(c) Increase in Maximum Age for Eligibility of Food Stamp
Recipients.--Clause (i) of section 51(d)(8)(A) is amended by striking
``25'' and inserting ``40''.
(d) Extension of Paperwork Filing Deadline.--Section
51(d)(12)(A)(ii)(II) is amended by striking ``21st day'' and inserting
``28th day''.
(e) Consolidation of Work Opportunity Credit With Welfare-to-Work
Credit.--
(1) In general.--Paragraph (1) of section 51(d) is amended
by striking ``or'' at the end of subparagraph (G), by striking
the period at the end of subparagraph (H) and inserting ``,
or'', and by adding at the end the following new subparagraph:
``(I) a long-term family assistance recipient.''.
(2) Long-term family assistance recipient.--Subsection (d)
of section 51 is amended by redesignating paragraphs (10)
through (12) as paragraphs (11) through (13), respectively, and
by inserting after paragraph (9) the following new paragraph:
``(10) Long-term family assistance recipient.--The term
`long-term family assistance recipient' means any individual
who is certified by the designated local agency--
``(A) as being a member of a family receiving
assistance under a IV-A program (as defined in
paragraph (2)(B)) for at least the 18-month period
ending on the hiring date,
``(B)(i) as being a member of a family receiving
such assistance for 18 months beginning after August 5,
1997, and
``(ii) as having a hiring date which is not more
than 2 years after the end of the earliest such 18-
month period, or
``(C)(i) as being a member of a family which ceased
to be eligible for such assistance by reason of any
limitation imposed by Federal or State law on the
maximum period such assistance is payable to a family,
and
``(ii) as having a hiring date which is not more
than 2 years after the date of such cessation.''.
(3) Increased credit for employment of long-term family
assistance recipients.--Section 51 is amended by inserting
after subsection (d) the following new subsection:
``(e) Credit for Second-Year Wages for Employment of Long-Term
Family Assistance Recipients.--
``(1) In general.--With respect to the employment of a
long-term family assistance recipient--
``(A) the amount of the work opportunity credit
determined under this section for the taxable year
shall include 50 percent of the qualified second-year
wages for such year, and
``(B) in lieu of applying subsection (b)(3), the
amount of the qualified first-year wages, and the
amount of qualified second-year wages, which may be
taken into account with respect to such a recipient
shall not exceed $10,000 per year.
``(2) Qualified second-year wages.--For purposes of this
subsection, the term `qualified second-year wages' means
qualified wages--
``(A) which are paid to a long-term family
assistance recipient, and
``(B) which are attributable to service rendered
during the 1-year period beginning on the day after the
last day of the 1-year period with respect to such
recipient determined under subsection (b)(2).
``(3) Special rules for agricultural and railway labor.--If
such recipient is an employee to whom subparagraph (A) or (B)
of subsection (h)(1) applies, rules similar to the rules of
such subparagraphs shall apply except that--
``(A) such subparagraph (A) shall be applied by
substituting `$10,000' for `$6,000', and
``(B) such subparagraph (B) shall be applied by
substituting `$833.33' for `$500'.''.
(4) Repeal of separate welfare-to-work credit.--
(A) In general.--Section 51A is hereby repealed.
(B) Clerical amendment.--The table of sections for
subpart F of part IV of subchapter A of chapter 1 is
amended by striking the item relating to section 51A.
(f) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to individuals who
begin work for the employer after December 31, 2005.
(2) Consolidation.--The amendments made by subsections (b),
(c), (d), and (e) shall apply to individuals who begin work for
the employer after December 31, 2006.
SEC. 106. ELECTION TO INCLUDE COMBAT PAY AS EARNED INCOME FOR PURPOSES
OF EARNED INCOME CREDIT.
(a) In General.--Section 32(c)(2)(B)(vi)(II) is amended by striking
``2007'' and inserting ``2008''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2006.
SEC. 107. EXTENSION AND MODIFICATION OF QUALIFIED ZONE ACADEMY BONDS.
(a) In General.--Paragraph (1) of section 1397E(e) is amended by
striking ``and 2005'' and inserting ``2005, 2006, and 2007''.
(b) Special Rules Relating to Expenditures, Arbitrage, and
Reporting.--
(1) In general.--Section 1397E is amended--
(A) in subsection (d)(1), by striking ``and'' at
the end of subparagraph (C)(iii), by striking the
period at the end of subparagraph (D) and inserting ``,
and'', and by adding at the end the following new
subparagraph:
``(E) the issue meets the requirements of
subsections (f), (g), and (h).'', and
(B) by redesignating subsections (f), (g), (h), and
(i) as subsection (i), (j), (k), and (l), respectively,
and by inserting after subsection (e) the following new
subsections:
``(f) Special Rules Relating to Expenditures.--
``(1) In general.--An issue shall be treated as meeting the
requirements of this subsection if, as of the date of issuance,
the issuer reasonably expects--
``(A) at least 95 percent of the proceeds from the
sale of the issue are to be spent for 1 or more
qualified purposes with respect to qualified zone
academies within the 5-year period beginning on the
date of issuance of the qualified zone academy bond,
``(B) a binding commitment with a third party to
spend at least 10 percent of the proceeds from the sale
of the issue will be incurred within the 6-month period
beginning on the date of issuance of the qualified zone
academy bond, and
``(C) such purposes will be completed with due
diligence and the proceeds from the sale of the issue
will be spent with due diligence.
``(2) Extension of period.--Upon submission of a request
prior to the expiration of the period described in paragraph
(1)(A), the Secretary may extend such period if the issuer
establishes that the failure to satisfy the 5-year requirement
is due to reasonable cause and the related purposes will
continue to proceed with due diligence.
``(3) Failure to spend required amount of bond proceeds
within 5 years.--To the extent that less than 95 percent of the
proceeds of such issue are expended by the close of the 5-year
period beginning on the date of issuance (or if an extension
has been obtained under paragraph (2), by the close of the
extended period), the issuer shall redeem all of the
nonqualified bonds within 90 days after the end of such period.
For purposes of this paragraph, the amount of the nonqualified
bonds required to be redeemed shall be determined in the same
manner as under section 142.
``(g) Special Rules Relating to Arbitrage.--An issue shall be
treated as meeting the requirements of this subsection if the issuer
satisfies the arbitrage requirements of section 148 with respect to
proceeds of the issue.
``(h) Reporting.--Issuers of qualified academy zone bonds shall
submit reports similar to the reports required under section 149(e).''.
(2) Conforming amendments.--Sections 54(l)(3)(B) and
1400N(l)(7)(B)(ii) are each amended by striking ``section
1397E(i)'' and inserting ``section 1397E(l)''.
(c) Effective Dates.--
(1) Extension.--The amendment made by subsection (a) shall
apply to obligations issued after December 31, 2005.
(2) Special rules.--The amendments made by subsection (b)
shall apply to obligations issued after the date of the
enactment of this Act pursuant to allocations of the national
zone academy bond limitation for calendar years after 2005.
SEC. 108. ABOVE-THE-LINE DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY
AND SECONDARY SCHOOL TEACHERS.
(a) In General.--Subparagraph (D) of section 62(a)(2) is amended by
striking ``or 2005'' and inserting ``2005, 2006, or 2007''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2005.
SEC. 109. EXTENSION AND EXPANSION OF EXPENSING OF BROWNFIELDS
REMEDIATION COSTS.
(a) Extension.--Subsection (h) of section 198 is amended by
striking ``2005'' and inserting ``2007''.
(b) Expansion.--Section 198(d)(1) (defining hazardous substance) is
amended by striking ``and'' at the end of subparagraph (A), by striking
the period at the end of subparagraph (B) and inserting ``, and'', and
by adding at the end the following new subparagraph:
``(C) any petroleum product (as defined in section
4612(a)(3)).''.
(c) Effective Date.--The amendments made by this section shall
apply to expenditures paid or incurred after December 31, 2005.
SEC. 110. TAX INCENTIVES FOR INVESTMENT IN THE DISTRICT OF COLUMBIA.
(a) Designation of Zone.--
(1) In general.--Subsection (f) of section 1400 is amended
by striking ``2005'' both places it appears and inserting
``2007''.
(2) Effective date.--The amendments made by this subsection
shall apply to periods beginning after December 31, 2005.
(b) Tax-Exempt Economic Development Bonds.--
(1) In general.--Subsection (b) of section 1400A is amended
by striking ``2005'' and inserting ``2007''.
(2) Effective date.--The amendment made by this subsection
shall apply to bonds issued after December 31, 2005.
(c) Zero Percent Capital Gains Rate.--
(1) In general.--Subsection (b) of section 1400B is amended
by striking ``2006'' each place it appears and inserting
``2008''.
(2) Conforming amendments.--
(A) Section 1400B(e)(2) is amended--
(i) by striking ``2010'' and inserting
``2012'', and
(ii) by striking ``2010'' in the heading
thereof and inserting ``2012''.
(B) Section 1400B(g)(2) is amended by striking
``2010'' and inserting ``2012''.
(C) Section 1400F(d) is amended by striking
``2010'' and inserting ``2012''.
(3) Effective dates.--
(A) Extension.--The amendments made by paragraph
(1) shall apply to acquisitions after December 31,
2005.
(B) Conforming amendments.--The amendments made by
paragraph (2) shall take effect on the date of the
enactment of this Act.
(d) First-Time Homebuyer Credit.--
(1) In general.--Subsection (i) of section 1400C is amended
by striking ``2006'' and inserting ``2008''.
(2) Effective date.--The amendment made by this subsection
shall apply to property purchased after December 31, 2005.
SEC. 111. INDIAN EMPLOYMENT TAX CREDIT.
(a) In General.--Section 45A(f) is amended by striking ``2005'' and
inserting ``2007''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2005.
SEC. 112. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY ON INDIAN
RESERVATIONS.
(a) In General.--Section 168(j)(8) is amended by striking ``2005''
and inserting ``2007''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after December 31, 2005.
SEC. 113. FIFTEEN-YEAR STRAIGHT-LINE COST RECOVERY FOR QUALIFIED
LEASEHOLD IMPROVEMENTS AND QUALIFIED RESTAURANT PROPERTY.
(a) In General.--Clauses (iv) and (v) of section 168(e)(3)(E) are
each amended by striking ``2006'' and inserting ``2008''.
(b) Treatment of Restaurant Property to Include New Construction.--
Paragraph (7) of section 168(e) (relating to classification of
property) is amended to read as follows:
``(7) Qualified restaurant property.--The term `qualified
restaurant property' means any section 1250 property which is a
building or an improvement to a building if more than 50
percent of the building's square footage is devoted to
preparation of, and seating for on-premises consumption of,
prepared meals.''.
(c) Effective Dates.--
(1) Subsection (a).--The amendments made by subsection (a)
shall apply to property placed in service after December 31,
2005.
(2) Subsection (b).--The amendment made by subsection (b)
shall apply to property placed in service after the date of the
enactment of this Act.
SEC. 114. COVER OVER OF TAX ON DISTILLED SPIRITS.
(a) In General.--Section 7652(f)(1) is amended by striking ``2006''
and inserting ``2008''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to articles brought into the United States after December 31,
2005.
SEC. 115. PARITY IN APPLICATION OF CERTAIN LIMITS TO MENTAL HEALTH
BENEFITS.
(a) Amendment to the Internal Revenue Code of 1986.--Section
9812(f)(3) is amended by striking ``2006'' and inserting ``2007''.
(b) Amendment to the Employee Retirement Income Security Act of
1974.--Section 712(f) of the Employee Retirement Income Security Act of
1974 (29 U.S.C. 1185a(f)) is amended by striking ``2006'' and inserting
``2007''.
(c) Amendment to the Public Health Service Act.--Section 2705(f) of
the Public Health Service Act (42 U.S.C. 300gg-5(f)) is amended by
striking ``2006''and inserting ``2007''.
SEC. 116. CORPORATE DONATIONS OF SCIENTIFIC PROPERTY USED FOR RESEARCH
AND OF COMPUTER TECHNOLOGY AND EQUIPMENT.
(a) Extension of Computer Technology and Equipment Donation.--
(1) In general.--Section 170(e)(6)(G) is amended by
striking ``2005'' and inserting ``2007''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply to contributions made in taxable years beginning
after December 31, 2005.
(b) Expansion of Charitable Contribution Allowed for Scientific
Property Used for Research and for Computer Technology and Equipment
Used for Educational Purposes.--
(1) Scientific property used for research.--
(A) In general.--Clause (ii) of section
170(e)(4)(B) (defining qualified research
contributions) is amended by inserting ``or assembled''
after ``constructed''.
(B) Conforming amendment.--Clause (iii) of section
170(e)(4)(B) is amended by inserting ``or assembly''
after ``construction''.
(2) Computer technology and equipment for educational
purposes.--
(A) In general.--Clause (ii) of section
170(e)(6)(B) is amended by inserting ``or assembled''
after ``constructed'' and ``or assembling'' after
``construction''.
(B) Conforming amendment.--Subparagraph (D) of
section 170(e)(6) is amended by inserting ``or
assembled'' after ``constructed'' and ``or assembly''
after ``construction''.
(3) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31, 2005.
SEC. 117. AVAILABILITY OF MEDICAL SAVINGS ACCOUNTS.
(a) In General.--Paragraphs (2) and (3)(B) of section 220(i) are
each amended by striking ``2005'' each place it appears in the text and
headings and inserting ``2007''.
(b) Conforming Amendments.--
(1) Paragraph (2) of section 220(j) is amended--
(A) in the text by striking ``or 2004'' each place
it appears and inserting ``2004, 2005, or 2006'', and
(B) in the heading by striking ``or 2004'' and
inserting ``2004, 2005, or 2006'' .
(2) Subparagraph (A) of section 220(j)(4) is amended by
striking ``and 2004'' and inserting ``2004, 2005, and 2006''.
(c) Time for Filing Reports, etc.--
(1) The report required by section 220(j)(4) of the
Internal Revenue Code of 1986 to be made on August 1, 2005,
shall be treated as timely if made before the close of the 90-
day period beginning on the date of the enactment of this Act.
(2) The determination and publication required by section
220(j)(5) of such Code with respect to calendar year 2005 shall
be treated as timely if made before the close of the 120-day
period beginning on the date of the enactment of this Act. If
the determination under the preceding sentence is that 2005 is
a cut-off year under section 220(i) of such Code, the cut-off
date under such section 220(i) shall be the last day of such
120-day period.
SEC. 118. TAXABLE INCOME LIMIT ON PERCENTAGE DEPLETION FOR OIL AND
NATURAL GAS PRODUCED FROM MARGINAL PROPERTIES.
(a) In General.--Section 613A(c)(6)(H) is amended by striking
``2006'' and inserting ``2008''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to taxable years beginning after December 31, 2005.
SEC. 119. AMERICAN SAMOA ECONOMIC DEVELOPMENT CREDIT.
(a) In General.--For purposes of section 30A of the Internal
Revenue Code of 1986, a domestic corporation shall be treated as a
qualified domestic corporation to which such section applies if such
corporation--
(1) is an existing credit claimant with respect to American
Samoa, and
(2) elected the application of section 936 of the Internal
Revenue Code of 1986 for its last taxable year beginning before
January 1, 2006.
(b) Special Rules for Application of Section.--The following rules
shall apply in applying section 30A of the Internal Revenue Code of
1986 for purposes of this section:
(1) Amount of credit.--Notwithstanding section 30A(a)(1) of
such Code, the amount of the credit determined under section
30A(a)(1) of such Code for any taxable year shall be the amount
determined under section 30A(d) of such Code, except that
section 30A(d) shall be applied without regard to paragraph (3)
thereof.
(2) Separate application.--In applying section 30A(a)(3) of
such Code in the case of a corporation treated as a qualified
domestic corporation by reason of this section, section 30A of
such Code (and so much of section 936 of such Code as relates
to such section 30A) shall be applied separately with respect
to American Samoa.
(3) Foreign tax credit allowed.--Notwithstanding section
30A(e) of such Code, the provisions of section 936(c) of such
Code shall not apply with respect to the credit allowed by
reason of this section.
(c) Definitions.--For purposes of this section, any term which is
used in this section which is also used in section 30A or 936 of such
Code shall have the same meaning given such term by such section 30A or
936.
(d) Application of Section.--Notwithstanding section 30A(h) or
section 936(j) of such Code, this section (and so much of section 30A
and section 936 of such Code as relates to this section) shall apply to
the first two taxable years of a corporation to which subsection (a)
applies which begin after December 31, 2005, and before January 1,
2008.
SEC. 120. RESTRUCTURING OF NEW YORK LIBERTY ZONE TAX CREDITS.
(a) In General.--Part I of subchapter Y of chapter 1 is amended by
redesignating section 1400L as 1400K and by adding at the end the
following new section:
``SEC. 1400L. NEW YORK LIBERTY ZONE TAX CREDITS.
``(a) In General.--In the case of a New York Liberty Zone
governmental unit, there shall be allowed as a credit against any taxes
imposed for any payroll period by section 3402 for which such
governmental unit is liable under section 3403 an amount equal to so
much of the portion of the qualifying project expenditure amount
allocated under subsection (b)(3) to such governmental unit for the
calendar year as is allocated by such governmental unit to such period
under subsection (b)(4).
``(b) Qualifying Project Expenditure Amount.--For purposes of this
section--
``(1) In general.--The term `qualifying project expenditure
amount' means, with respect to any calendar year, the sum of--
``(A) the total expenditures paid or incurred
during such calendar year by all New York Liberty Zone
governmental units and the Port Authority of New York
and New Jersey for any portion of qualifying projects
located wholly within the City of New York, New York,
and
``(B) any such expenditures--
``(i) paid or incurred in any preceding
calendar year which begins after the date of
enactment of this section, and
``(ii) not previously allocated under
paragraph (3).
``(2) Qualifying project.--The term `qualifying project'
means any transportation infrastructure project, including
highways, mass transit systems, railroads, airports, ports, and
waterways, in or connecting with the New York Liberty Zone (as
defined in section 1400K(h)), which is designated as a
qualifying project under this section jointly by the Governor
of the State of New York and the Mayor of the City of New York,
New York.
``(3) General allocation.--
``(A) In general.--The Governor of the State of New
York and the Mayor of the City of New York, New York,
shall jointly allocate to each New York Liberty Zone
governmental unit the portion of the qualifying project
expenditure amount which may be taken into account by
such governmental unit under subsection (a) for any
calendar year in the credit period.
``(B) Aggregate limit.--The aggregate amount which
may be allocated under subparagraph (A) for all
calendar years in the credit period shall not exceed
$1,750,000,000.
``(C) Annual limit.--
``(i) In general.--The aggregate amount
which may be allocated under subparagraph (A)
for any calendar year in the credit period
shall not exceed the sum of--
``(I) the applicable limit, plus
``(II) the aggregate amount
authorized to be allocated under this
paragraph for all preceding calendar
years in the credit period which was
not so allocated.
``(ii) Applicable limit.--For purposes of
clause (i), the applicable limit for any
calendar year is--
``(I) in the case of calendar years
2007 through 2016, $100,000,000,
``(II) in the case of calendar year
2017 or 2018, $200,000,000,
``(III) in the case of calendar
year 2019, $150,000,000,
``(IV) in the case of calendar year
2020 or 2021, $100,000,000, and
``(V) in the case of any calendar
year after 2021, zero.
``(D) Unallocated amounts at end of credit
period.--If, as of the close of the credit period, the
amount under subparagraph (B) exceeds the aggregate
amount allocated under subparagraph (A) for all
calendar years in the credit period, the Governor of
the State of New York and the Mayor of the City of New
York, New York, may jointly allocate to New York
Liberty Zone governmental units for any calendar year
in the 5-year period following the credit period an
amount equal to--
``(i) the lesser of--
``(I) such excess, or
``(II) the qualifying project
expenditure amount for such calendar
year, reduced by
``(ii) the aggregate amount allocated under
this subparagraph for all preceding calendar
years.
``(4) Allocation to payroll periods.--Each New York Liberty
Zone governmental unit which has been allocated a portion of
the qualifying project expenditure amount under paragraph (3)
for a calendar year may allocate such portion to payroll
periods beginning in such calendar year as such governmental
unit determines appropriate.
``(c) Carryover of Unused Allocations.--
``(1) In general.--Except as provided in paragraph (2), if
the amount allocated under subsection (b)(3) to a New York
Liberty Zone governmental unit for any calendar year exceeds
the aggregate taxes imposed by section 3402 for which such
governmental unit is liable under section 3403 for periods
beginning in such year, such excess shall be carried to the
succeeding calendar year and added to the allocation of such
governmental unit for such succeeding calendar year. No amount
may be carried under the preceding sentence to a calendar year
after 2026.
``(2) Reallocation.--If a New York Liberty Zone
governmental unit does not use an amount allocated to it under
subsection (b)(3) within the time prescribed by the Governor of
the State of New York and the Mayor of the City of New York,
New York, then such amount shall after such time be treated for
purposes of subsection (b)(3) in the same manner as if it had
never been allocated.
``(d) Definitions and Special Rules.--For purposes of this
section--
``(1) Credit period.--The term `credit period' means the
15-year period beginning on January 1, 2007.
``(2) New york liberty zone governmental unit.--The term
`New York Liberty Zone governmental unit' means--
``(A) the State of New York,
``(B) the City of New York, New York, and
``(C) any agency or instrumentality of such State
or City.
``(3) Treatment of funds.--Any expenditure for a qualifying
project taken into account for purposes of the credit under
this section shall be considered State and local funds for the
purpose of any Federal program.
``(4) Treatment of credit amounts for purposes of
withholding taxes.--For purposes of this title, a New York
Liberty Zone governmental unit shall be treated as having paid
to the Secretary, on the day on which wages are paid to
employees, an amount equal to the amount of the credit allowed
to such entity under subsection (a) with respect to such wages,
but only if such governmental unit deducts and withholds wages
for such payroll period under section 3401 (relating to wage
withholding).
``(e) Reporting.--The Governor of the State of New York and the
Mayor of the City of New York, New York, shall jointly submit to the
Secretary an annual report--
``(1) which certifies--
``(A) the qualifying project expenditure amount for
the calendar year, and
``(B) the amount allocated to each New York Liberty
Zone governmental unit under subsection (b)(3) for the
calendar year, and
``(2) includes such other information as the Secretary may
require to carry out this section.
``(f) Guidance.--The Secretary may prescribe such guidance as may
be necessary or appropriate to ensure compliance with the purposes of
this section.
``(g) Termination.--No credit shall be allowed under subsection (a)
for any calender year after 2026.''.
(b) Termination of Certain New York Liberty Zone Benefits.--
(1) Special allowance and expensing.--Section
1400K(b)(2)(A)(v), as redesignated by subsection (a), is
amended by striking ``the termination date'' and inserting
``the date of the enactment of the Tax Relief and Minimum Wage
Act of 2006 or the termination date if pursuant to a binding
contract in effect on such enactment date''.
(2) Leasehold.--Section 1400K(c)(2)(B), as so redesignated,
is amended by striking ``before January 1, 2007'' and inserting
``on or before the date of the enactment of the Tax Relief and
Minimum Wage Act of 2006 or before January 1, 2007, if pursuant
to a binding contract in effect on such enactment date''.
(c) Conforming Amendments.--
(1) Section 38(c)(3)(B) is amended by striking ``section
1400L(a)'' and inserting ``section 1400K(a)''.
(2) Section 168(k)(2)(D)(ii) is amended by striking
``section 1400L(c)(2)'' and inserting ``1400K(c)(2)''.
(3) The table of sections for part I of subchapter Y of
chapter 1 is amended by striking ``1400L'' and inserting
``1400K''.
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to periods
beginning after December 31, 2006.
(2) Subsection (b).--The amendments made by subsection (b)
shall take effect as if included in section 301 of the Job
Creation and Worker Assistance Act of 2002.
SEC. 121. EXTENSION OF BONUS DEPRECIATION FOR CERTAIN QUALIFIED GULF
OPPORTUNITY ZONE PROPERTY.
(a) In General.--Subsection (d) of section 1400N is amended by
adding at the end the following new paragraph:
``(6) Extension for certain property.--
``(A) In general.--In the case of any specified
Gulf Opportunity Zone extension property, paragraph
(2)(A) shall be applied without regard to clause (v)
thereof.
``(B) Specified gulf opportunity zone extension
property.--For purposes of this paragraph, the term
`specified Gulf Opportunity Zone extension property'
means property--
``(i) substantially all of the use of which
is in one or more specified portions of the GO
Zone, and
``(ii) which is--
``(I) nonresidential real property
or residential rental property which is
placed in service by the taxpayer on or
before December 31, 2009, or
``(II) in the case of a taxpayer
who places a building described in
subclause (I) in service on or before
December 31, 2009, property described
in section 168(k)(2)(A)(i) if
substantially all of the use of such
property is in such building and such
property is placed in service by the
taxpayer not later than 90 days after
such building is placed in service.
``(C) Specified portions of the go zone.--For
purposes of this paragraph, the term `specified
portions of the GO Zone' means those portions of the GO
Zone which are in any county or parish which is
identified by the Secretary as being a county or parish
in which hurricanes occurring during 2005 damaged (in
the aggregate) more than 40 percent of the housing
units in such county or parish which were occupied
(determined according to the 2000 Census).''.
(b) Extension Not Applicable to Increased Section 179 Expensing.--
Paragraph (2) of section 1400N(e) is amended by inserting ``without
regard to subsection (d)(6)'' after ``subsection (d)(2)''.
(c) Effective Date.--The amendments made by this section shall take
effect as if included in section 101 of the Gulf Opportunity Zone Act
of 2005.
SEC. 122. AUTHORITY FOR UNDERCOVER OPERATIONS.
Paragraph (6) of section 7608(c) (relating to application of
section) is amended by striking ``2007'' both places it appears and
inserting ``2008''.
SEC. 123. DISCLOSURES OF CERTAIN TAX RETURN INFORMATION.
(a) Disclosures To Facilitate Combined Employment Tax Reporting.--
(1) In general.--Subparagraph (B) of section 6103(d)(5)
(relating to termination) is amended by striking ``2006'' and
inserting ``2007''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply to disclosures after December 31, 2006.
(b) Disclosures Relating to Terrorist Activities.--
(1) In general.--Clause (iv) of section 6103(i)(3)(C) and
subparagraph (E) of section 6103(i)(7) are each amended by
striking ``2006'' and inserting ``2007''.
(2) Effective date.--The amendments made by paragraph (1)
shall apply to disclosures after December 31, 2006.
(c) Disclosures Relating to Student Loans.--
(1) In general.--Subparagraph (D) of section 6103(l)(13)
(relating to termination) is amended by striking ``2006'' and
inserting ``2007''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply to requests made after December 31, 2006.
Subtitle B--Other Provisions
SEC. 131. DEDUCTION ALLOWABLE WITH RESPECT TO INCOME ATTRIBUTABLE TO
DOMESTIC PRODUCTION ACTIVITIES IN PUERTO RICO.
(a) In General.--Subsection (d) of section 199 (relating to
definitions and special rules) is amended by redesignating paragraph
(8) as paragraph (9) and by inserting after paragraph (7) the following
new paragraph:
``(8) Treatment of activities in puerto rico.--
``(A) In general.--In the case of any taxpayer with
gross receipts for any taxable year from sources within
the Commonwealth of Puerto Rico, if all of such
receipts are taxable under section 1 or 11 for such
taxable year, then for purposes of determining the
domestic production gross receipts of such taxpayer for
such taxable year under subsection (c)(4), the term
`United States' shall include the Commonwealth of
Puerto Rico.
``(B) Special rule for applying wage limitation.--
In the case of any taxpayer described in subparagraph
(A), for purposes of applying the limitation under
subsection (b) for any taxable year, the determination
of W-2 wages of such taxpayer shall be made without
regard to any exclusion under section 3401(a)(8) for
remuneration paid for services performed in Puerto
Rico.
``(C) Termination.--This paragraph shall apply only
with respect to the first 2 taxable years of the
taxpayer beginning after December 31, 2005, and before
January 1, 2008.''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply to taxable years beginning after December 31, 2005.
SEC. 132. CREDIT FOR PRIOR YEAR MINIMUM TAX LIABILITY MADE REFUNDABLE
AFTER PERIOD OF YEARS.
(a) In General.--Section 53 (relating to credit for prior year
minimum tax liability) is amended by adding at the end the following
new subsection:
``(e) Special Rule for Individuals With Long-Term Unused Credits.--
``(1) In general.--If an individual has a long-term unused
minimum tax credit for any taxable year beginning before
January 1, 2013, the amount determined under subsection (c) for
such taxable year shall not be less than the AMT refundable
credit amount for such taxable year.
``(2) Amt refundable credit amount.--For purposes of
paragraph (1)--
``(A) In general.--The term `AMT refundable credit
amount' means, with respect to any taxable year, the
amount equal to the greater of--
``(i) the lesser of--
``(I) $5,000, or
``(II) the amount of long-term
unused minimum tax credit for such
taxable year, or
``(ii) 20 percent of the amount of such
credit.
``(B) Phaseout of amt refundable credit amount.--
``(i) In general.--In the case of an
individual whose adjusted gross income for any
taxable year exceeds the threshold amount
(within the meaning of section 151(d)(3)(C)),
the AMT refundable credit amount determined
under subparagraph (A) for such taxable year
shall be reduced by the applicable percentage
(within the meaning of section 151(d)(3)(B)).
``(ii) Adjusted gross income.--For purposes
of clause (i), adjusted gross income shall be
determined without regard to sections 911, 931,
and 933.
``(3) Long-term unused minimum tax credit.--
``(A) In general.--For purposes of this subsection,
the term `long-term unused minimum tax credit' means,
with respect to any taxable year, the portion of the
minimum tax credit determined under subsection (b)
attributable to the adjusted net minimum tax for
taxable years before the 3rd taxable year immediately
preceding such taxable year.
``(B) First-in, first-out ordering rule.--For
purposes of subparagraph (A), credits shall be treated
as allowed under subsection (a) on a first-in, first-
out basis.
``(4) Credit refundable.--For purposes of this title (other
than this section), the credit allowed by reason of this
subsection shall be treated as if it were allowed under subpart
C.''.
(b) Conforming Amendments.--
(1) Section 6211(b)(4)(A) is amended by striking ``and 34''
and inserting ``34, and 53(e)''.
(2) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting ``or 53(e)'' after
``section 35''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 133. RETURNS REQUIRED IN CONNECTION WITH CERTAIN OPTIONS.
(a) In General.--So much of section 6039(a) as follows paragraph
(2) is amended to read as follows:
``shall, for such calendar year, make a return at such time and in such
manner, and setting forth such information, as the Secretary may by
regulations prescribe.''.
(b) Statements to Persons With Respect to Whom Information Is
Furnished.--Section 6039 is amended by redesignating subsections (b)
and (c) as subsection (c) and (d), respectively, and by inserting after
subsection (a) the following new subsection:
``(b) Statements to Be Furnished to Persons With Respect to Whom
Information Is Reported.--Every corporation making a return under
subsection (a) shall furnish to each person whose name is set forth in
such return a written statement setting forth such information as the
Secretary may by regulations prescribe. The written statement required
under the preceding sentence shall be furnished to such person on or
before January 31 of the year following the calendar year for which the
return under subsection (a) was made.''.
(c) Conforming Amendments.--
(1) Section 6724(d)(1)(B) is amended by striking ``or'' at
the end of clause (xvii), by striking ``and'' at the end of
clause (xviii) and inserting ``or'', and by adding at the end
the following new clause:
``(xix) section 6039(a) (relating to
returns required with respect to certain
options), and''.
(2) Section 6724(d)(2)(B) is amended by striking ``section
6039(a)'' and inserting ``section 6039(b)''.
(3) The heading of section 6039 and the item relating to
such section in the table of sections of subpart A of part III
of subchapter A of chapter 61 of such Code are each amended by
striking ``Information'' and inserting ``Returns''.
(4) The heading of subsection (a) of section 6039 is
amended by striking ``Furnishing of Information'' and inserting
``Requirement of Reporting''.
(d) Effective Date.--The amendments made by this section shall
apply to calendar years beginning after the date of the enactment of
this Act.
SEC. 134. PARTIAL EXPENSING FOR ADVANCED MINE SAFETY EQUIPMENT.
(a) In General.--Part VI of subchapter B of chapter 1 is amended by
inserting after section 179D the following new section:
``SEC. 179E. ELECTION TO EXPENSE ADVANCED MINE SAFETY EQUIPMENT.
``(a) Treatment as Expenses.--A taxpayer may elect to treat 50
percent of the cost of any qualified advanced mine safety equipment
property as an expense which is not chargeable to capital account. Any
cost so treated shall be allowed as a deduction for the taxable year in
which the qualified advanced mine safety equipment property is placed
in service.
``(b) Election.--
``(1) In general.--An election under this section for any
taxable year shall be made on the taxpayer's return of the tax
imposed by this chapter for the taxable year. Such election
shall specify the advanced mine safety equipment property to
which the election applies and shall be made in such manner as
the Secretary may by regulations prescribe.
``(2) Election irrevocable.--Any election made under this
section may not be revoked except with the consent of the
Secretary.
``(c) Qualified Advanced Mine Safety Equipment Property.--For
purposes of this section, the term `qualified advanced mine safety
equipment property' means any advanced mine safety equipment property
for use in any underground mine located in the United States--
``(1) the original use of which commences with the
taxpayer, and
``(2) which is placed in service by the taxpayer after the
date of the enactment of this section.
``(d) Advanced Mine Safety Equipment Property.--For purposes of
this section, the term `advanced mine safety equipment property' means
any of the following:
``(1) Emergency communication technology or device which is
used to allow a miner to maintain constant communication with
an individual who is not in the mine.
``(2) Electronic identification and location device which
allows an individual who is not in the mine to track at all
times the movements and location of miners working in or at the
mine.
``(3) Emergency oxygen-generating, self-rescue device which
provides oxygen for at least 90 minutes.
``(4) Pre-positioned supplies of oxygen which (in
combination with self-rescue devices) can be used to provide
each miner on a shift, in the event of an accident or other
event which traps the miner in the mine or otherwise
necessitates the use of such a self-rescue device, the ability
to survive for at least 48 hours.
``(5) Comprehensive atmospheric monitoring system which
monitors the levels of carbon monoxide, methane, and oxygen
that are present in all areas of the mine and which can detect
smoke in the case of a fire in a mine.
``(e) Coordination With Section 179.--No expenditures shall be
taken into account under subsection (a) with respect to the portion of
the cost of any property specified in an election under section 179.
``(f) Reporting.--No deduction shall be allowed under subsection
(a) to any taxpayer for any taxable year unless such taxpayer files
with the Secretary a report containing such information with respect to
the operation of the mines of the taxpayer as the Secretary shall
require.
``(g) Termination.--This section shall not apply to property placed
in service after December 31, 2008.''.
(b) Conforming Amendments.--
(1) Section 263(a)(1) is amended by striking ``or'' at the
end of subparagraph (J), by striking the period at the end of
subparagraph (K) and inserting ``, or'', and by inserting after
subparagraph (K) the following new subparagraph:
``(L) expenditures for which a deduction is allowed
under section 179E.''.
(2) Section 312(k)(3)(B) is amended by striking ``or 179D''
each place it appears in the heading and text thereof and
inserting ``179D, or 179E''.
(3) Paragraphs (2)(C) and (3)(C) of section 1245(a) are
each amended by inserting ``179E,'' after ``179D,''.
(4) The table of sections for part VI of subchapter B of
chapter 1 is amended by inserting after the item relating to
section 179D the following new item:
``Sec. 179E. Election to expense advanced mine safety equipment.''.
(c) Effective Date.--The amendments made by this section shall
apply to costs paid or incurred after the date of the enactment of this
Act.
SEC. 135. MINE RESCUE TEAM TRAINING TAX CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
(relating to business related credits) is amended by adding at the end
the following new section:
``SEC. 45N. MINE RESCUE TEAM TRAINING CREDIT.
``(a) Amount of Credit.--For purposes of section 38, the mine
rescue team training credit determined under this section with respect
to each qualified mine rescue team employee of an eligible employer for
any taxable year is an amount equal to the lesser of--
``(1) 20 percent of the amount paid or incurred by the
taxpayer during the taxable year with respect to the training
program costs of such qualified mine rescue team employee
(including wages of such employee while attending such
program), or
``(2) $10,000.
``(b) Qualified Mine Rescue Team Employee.--For purposes of this
section, the term `qualified mine rescue team employee' means with
respect to any taxable year any full-time employee of the taxpayer who
is--
``(1) a miner eligible for more than 6 months of such
taxable year to serve as a mine rescue team member as a result
of completing, at a minimum, an initial 20-hour course of
instruction as prescribed by the Mine Safety and Health
Administration's Office of Educational Policy and Development,
or
``(2) a miner eligible for more than 6 months of such
taxable year to serve as a mine rescue team member by virtue of
receiving at least 40 hours of refresher training in such
instruction.
``(c) Eligible Employer.--For purposes of this section, the term
`eligible employer' means any taxpayer which employs individuals as
miners in underground mines in the United States.
``(d) Wages.--For purposes of this section, the term `wages' has
the meaning given to such term by subsection (b) of section 3306
(determined without regard to any dollar limitation contained in such
section).
``(e) Termination.--This section shall not apply to taxable years
beginning after December 31, 2008.''.
(b) Credit Made Part of General Business Credit.--Section 38(b) is
amended by striking ``and'' at the end of paragraph (29), by striking
the period at the end of paragraph (30) and inserting ``, plus'', and
by adding at the end the following new paragraph:
``(31) the mine rescue team training credit determined
under section 45N(a).''.
(c) No Double Benefit.--Section 280C is amended by adding at the
end the following new subsection:
``(e) Mine Rescue Team Training Credit.--No deduction shall be
allowed for that portion of the expenses otherwise allowable as a
deduction for the taxable year which is equal to the amount of the
credit determined for the taxable year under section 45N(a).''.
(d) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 is amended by adding at the end
the following new item:
``Sec. 45N. Mine rescue team training credit.''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2005.
SEC. 136. WHISTLEBLOWER REFORMS.
(a) Awards to Whistleblowers.--
(1) In general.--Section 7623 (relating to expenses of
detection of underpayments and fraud, etc.) is amended--
(A) by striking ``The Secretary'' and inserting
``(a) In General.--The Secretary'',
(B) by striking ``and'' at the end of paragraph (1)
and inserting ``or'',
(C) by striking ``(other than interest)'', and
(D) by adding at the end the following new
subsection:
``(b) Awards to Whistleblowers.--
``(1) In general.--If the Secretary proceeds with any
administrative or judicial action described in subsection (a)
based on information brought to the Secretary's attention by an
individual, such individual shall, subject to paragraph (2),
receive as an award at least 15 percent but not more than 30
percent of the collected proceeds (including penalties,
interest, additions to tax, and additional amounts) resulting
from the action (including any related actions) or from any
settlement in response to such action. The determination of the
amount of such award by the Whistleblower Office shall depend
upon the extent to which the individual substantially
contributed to such action.
``(2) Award in case of less substantial contribution.--
``(A) In general.--In the event the action
described in paragraph (1) is one which the
Whistleblower Office determines to be based principally
on disclosures of specific allegations (other than
information provided by the individual described in
paragraph (1)) resulting from a judicial or
administrative hearing, from a governmental report,
hearing, audit, or investigation, or from the news
media, the Whistleblower Office may award such sums as
it considers appropriate, but in no case more than 10
percent of the collected proceeds (including penalties,
interest, additions to tax, and additional amounts)
resulting from the action (including any related
actions) or from any settlement in response to such
action, taking into account the significance of the
individual's information and the role of such
individual and any legal representative of such
individual in contributing to such action.
``(B) Nonapplication of paragraph where individual
is original source of information.--Subparagraph (A)
shall not apply if the information resulting in the
initiation of the action described in paragraph (1) was
originally provided by the individual described in
paragraph (1).
``(3) Reduction in or denial of award.--If the
Whistleblower Office determines that the claim for an award
under paragraph (1) or (2) is brought by an individual who
planned and initiated the actions that led to the underpayment
of tax or actions described in subsection (a)(2), then the
Whistleblower Office may appropriately reduce such award. If
such individual is convicted of criminal conduct arising from
the role described in the preceding sentence, the Whistleblower
Office shall deny any award.
``(4) Appeal of award determination.--Any determination
regarding an award under paragraph (1), (2), or (3) may, within
30 days of such determination, be appealed to the Tax Court
(and the Tax Court shall have jurisdiction with respect to such
matter).
``(5) Application of this subsection.--This subsection
shall apply with respect to any action--
``(A) against any taxpayer, but in the case of any
individual, only if such individual's gross income
exceeds $200,000 for any taxable year subject to such
action, and
``(B) if the tax, penalties, interest, additions to
tax, and additional amounts in dispute exceed
$2,000,000.
``(6) Additional rules.--
``(A) No contract necessary.--No contract with the
Internal Revenue Service is necessary for any
individual to receive an award under this subsection.
``(B) Representation.--Any individual described in
paragraph (1) or (2) may be represented by counsel.
``(C) Submission of information.--No award may be
made under this subsection based on information
submitted to the Secretary unless such information is
submitted under penalty of perjury.''.
(2) Assignment to special trial judges.--
(A) In general.--Section 7443A(b) (relating to
proceedings which may be assigned to special trial
judges) is amended by striking ``and'' at the end of
paragraph (4), by redesignating paragraph (5) as
paragraph (6), and by inserting after paragraph (4) the
following new paragraph:
``(5) any proceeding under section 7623(b)(4), and''.
(B) Conforming amendment.--Section 7443A(c) is
amended by striking ``or (4)'' and inserting ``(4), or
(5)''.
(3) Deduction allowed whether or not taxpayer itemizes.--
Subsection (a) of section 62 (relating to general rule defining
adjusted gross income) is amended by inserting after paragraph
(20) the following new paragraph:
``(21) Attorneys fees relating to awards to
whistleblowers.--Any deduction allowable under this chapter for
attorney fees and court costs paid by, or on behalf of, the
taxpayer in connection with any award under section 7623(b)
(relating to awards to whistleblowers). The preceding sentence
shall not apply to any deduction in excess of the amount
includible in the taxpayer's gross income for the taxable year
on account of such award.''.
(b) Whistleblower Office.--
(1) In general.--Not later than the date which is 12 months
after the date of the enactment of this Act, the Secretary of
the Treasury shall issue guidance for the operation of a
whistleblower program to be administered in the Internal
Revenue Service by an office to be known as the ``Whistleblower
Office'' which--
(A) shall at all times operate at the direction of
the Commissioner of Internal Revenue and coordinate and
consult with other divisions in the Internal Revenue
Service as directed by the Commissioner of Internal
Revenue,
(B) shall analyze information received from any
individual described in section 7623(b) of the Internal
Revenue Code of 1986 and either investigate the matter
itself or assign it to the appropriate Internal Revenue
Service office, and
(C) in its sole discretion, may ask for additional
assistance from such individual or any legal
representative of such individual.
(2) Request for assistance.--The guidance issued under
paragraph (1) shall specify that any assistance requested under
paragraph (1)(C) shall be under the direction and control of
the Whistleblower Office or the office assigned to investigate
the matter under paragraph (1)(A). No individual or legal
representative whose assistance is so requested may by reason
of such request represent himself or herself as an employee of
the Federal Government.
(c) Report by Secretary.--The Secretary of the Treasury shall each
year conduct a study and report to Congress on the use of section 7623
of the Internal Revenue Code of 1986, including--
(1) an analysis of the use of such section during the
preceding year and the results of such use, and
(2) any legislative or administrative recommendations
regarding the provisions of such section and its application.
(d) Effective Date.--The amendments made by subsection (a) shall
apply to information provided on or after the date of the enactment of
this Act.
SEC. 137. FRIVOLOUS TAX SUBMISSIONS.
(a) Civil Penalties.--Section 6702 is amended to read as follows:
``SEC. 6702. FRIVOLOUS TAX SUBMISSIONS.
``(a) Civil Penalty for Frivolous Tax Returns.--A person shall pay
a penalty of $5,000 if--
``(1) such person files what purports to be a return of a
tax imposed by this title but which--
``(A) does not contain information on which the
substantial correctness of the self-assessment may be
judged, or
``(B) contains information that on its face
indicates that the self-assessment is substantially
incorrect, and
``(2) the conduct referred to in paragraph (1)--
``(A) is based on a position which the Secretary
has identified as frivolous under subsection (c), or
``(B) reflects a desire to delay or impede the
administration of Federal tax laws.
``(b) Civil Penalty for Specified Frivolous Submissions.--
``(1) Imposition of penalty.--Except as provided in
paragraph (3), any person who submits a specified frivolous
submission shall pay a penalty of $5,000.
``(2) Specified frivolous submission.--For purposes of this
section--
``(A) Specified frivolous submission.--The term
`specified frivolous submission' means a specified
submission if any portion of such submission--
``(i) is based on a position which the
Secretary has identified as frivolous under
subsection (c), or
``(ii) reflects a desire to delay or impede
the administration of Federal tax laws.
``(B) Specified submission.--The term `specified
submission' means--
``(i) a request for a hearing under--
``(I) section 6320 (relating to
notice and opportunity for hearing upon
filing of notice of lien), or
``(II) section 6330 (relating to
notice and opportunity for hearing
before levy), and
``(ii) an application under--
``(I) section 6159 (relating to
agreements for payment of tax liability
in installments),
``(II) section 7122 (relating to
compromises), or
``(III) section 7811 (relating to
taxpayer assistance orders).
``(3) Opportunity to withdraw submission.--If the Secretary
provides a person with notice that a submission is a specified
frivolous submission and such person withdraws such submission
within 30 days after such notice, the penalty imposed under
paragraph (1) shall not apply with respect to such submission.
``(c) Listing of Frivolous Positions.--The Secretary shall
prescribe (and periodically revise) a list of positions which the
Secretary has identified as being frivolous for purposes of this
subsection. The Secretary shall not include in such list any position
that the Secretary determines meets the requirement of section
6662(d)(2)(B)(ii)(II).
``(d) Reduction of Penalty.--The Secretary may reduce the amount of
any penalty imposed under this section if the Secretary determines that
such reduction would promote compliance with and administration of the
Federal tax laws.
``(e) Penalties in Addition to Other Penalties.--The penalties
imposed by this section shall be in addition to any other penalty
provided by law.''.
(b) Treatment of Frivolous Requests for Hearings Before Levy.--
(1) Frivolous requests disregarded.--Section 6330 (relating
to notice and opportunity for hearing before levy) is amended
by adding at the end the following new subsection:
``(g) Frivolous Requests for Hearing, Etc.--Notwithstanding any
other provision of this section, if the Secretary determines that any
portion of a request for a hearing under this section or section 6320
meets the requirement of clause (i) or (ii) of section 6702(b)(2)(A),
then the Secretary may treat such portion as if it were never submitted
and such portion shall not be subject to any further administrative or
judicial review.''.
(2) Preclusion from raising frivolous issues at hearing.--
Section 6330(c)(4) is amended--
(A) by striking ``(A)'' and inserting ``(A)(i)'';
(B) by striking ``(B)'' and inserting ``(ii)'';
(C) by striking the period at the end of the first
sentence and inserting ``; or''; and
(D) by inserting after subparagraph (A)(ii) (as so
redesignated) the following:
``(B) the issue meets the requirement of clause (i)
or (ii) of section 6702(b)(2)(A).''.
(3) Statement of grounds.--Section 6330(b)(1) is amended by
striking ``under subsection (a)(3)(B)'' and inserting ``in
writing under subsection (a)(3)(B) and states the grounds for
the requested hearing''.
(c) Treatment of Frivolous Requests for Hearings Upon Filing of
Notice of Lien.--Section 6320 is amended--
(1) in subsection (b)(1), by striking ``under subsection
(a)(3)(B)'' and inserting ``in writing under subsection
(a)(3)(B) and states the grounds for the requested hearing'',
and
(2) in subsection (c), by striking ``and (e)'' and
inserting ``(e), and (g)''.
(d) Treatment of Frivolous Applications for Offers-in-Compromise
and Installment Agreements.--Section 7122 is amended by adding at the
end the following new subsection:
``(f) Frivolous Submissions, Etc.--Notwithstanding any other
provision of this section, if the Secretary determines that any portion
of an application for an offer-in-compromise or installment agreement
submitted under this section or section 6159 meets the requirement of
clause (i) or (ii) of section 6702(b)(2)(A), then the Secretary may
treat such portion as if it were never submitted and such portion shall
not be subject to any further administrative or judicial review.''.
(e) Clerical Amendment.--The table of sections for part I of
subchapter B of chapter 68 is amended by striking the item relating to
section 6702 and inserting the following new item:
``Sec. 6702. Frivolous tax submissions.''.
(f) Effective Date.--The amendments made by this section shall
apply to submissions made and issues raised after the date on which the
Secretary first prescribes a list under section 6702(c) of the Internal
Revenue Code of 1986, as amended by subsection (a).
SEC. 138. ADDITION OF MENINGOCOCCAL AND HUMAN PAPILLOMAVIRUS VACCINES
TO LIST OF TAXABLE VACCINES.
(a) Meningococcal Vaccine.--Section 4132(a)(1) (defining taxable
vaccine) is amended by adding at the end the following new
subparagraph:
``(O) Any meningococcal vaccine.''.
(b) Human Papillomavirus Vaccine.--Section 4132(a)(1), as amended
by subsection (a), is amended by adding at the end the following new
subparagraph:
``(P) Any vaccine against the human
papillomavirus.''.
(c) Effective Date.--
(1) Sales, etc.--The amendments made by this section shall
apply to sales and uses on or after the first day of the first
month which begins more than 4 weeks after the date of the
enactment of this Act.
(2) Deliveries.--For purposes of paragraph (1) and section
4131 of the Internal Revenue Code of 1986, in the case of sales
on or before the effective date described in such paragraph for
which delivery is made after such date, the delivery date shall
be considered the sale date.
SEC. 139. CLARIFICATION OF TAXATION OF CERTAIN SETTLEMENT FUNDS MADE
PERMANENT.
(a) In General.--Subsection (g) of section 468B, as amended by
section 201 of the Tax Increase Prevention and Reconciliation Act of
2005, is amended by striking paragraph (3).
(b) Effective Date.--The amendment made by this section shall take
effect as if included in section 201 of the Tax Increase Prevention and
Reconciliation Act of 2005.
SEC. 140. MODIFICATION OF ACTIVE BUSINESS DEFINITION UNDER SECTION 355
MADE PERMANENT.
(a) In General.--Subparagraphs (A) and (D) of section 355(b)(3), as
amended by section 202 of the Tax Increase Prevention and
Reconciliation Act of 2005, are each amended by striking ``and on or
before December 31, 2010''.
(b) Effective Date.--The amendments made by this section shall take
effect as if included in section 202 of the Tax Increase Prevention and
Reconciliation Act of 2005.
SEC. 141. REVISION OF STATE VETERANS LIMIT MADE PERMANENT.
(a) In General.--Subparagraph (B) of section 143(l)(3), as amended
by section 203 of the Tax Increase Prevention and Reconciliation Act of
2005, is amended by striking clause (iv).
(b) Effective Date.--The amendment made by this section shall take
effect as if included in section 203 of the Tax Increase Prevention and
Reconciliation Act of 2005.
SEC. 142. CAPITAL GAINS TREATMENT FOR CERTAIN SELF-CREATED MUSICAL
WORKS MADE PERMANENT.
(a) In General.--Paragraph (3) of section 1221(b), as amended by
section 204 of the Tax Increase Prevention and Reconciliation Act of
2005, is amended by striking ``before January 1, 2011,''.
(b) Effective Date.--The amendment made by this section shall take
effect as if included in section 204 of the Tax Increase Prevention and
Reconciliation Act of 2005.
SEC. 143. REDUCTION IN MINIMUM VESSEL TONNAGE WHICH QUALIFIES FOR
TONNAGE TAX MADE PERMANENT.
(a) In General.--Paragraph (4) of section 1355(a), as amended by
section 205 of the Tax Increase Prevention and Reconciliation Act of
2005, is amended by striking ``10,000 (6,000, in the case of taxable
years beginning after December 31, 2005, and ending before January 1,
2011)'' and inserting ``6,000''.
(b) Effective Date.--The amendment made by this section shall take
effect as if included in section 205 of the Tax Increase Prevention and
Reconciliation Act of 2005.
SEC. 144. MODIFICATION OF SPECIAL ARBITRAGE RULE FOR CERTAIN FUNDS MADE
PERMANENT.
(a) In General.--Section 206 of the Tax Increase Prevention and
Reconciliation Act of 2005 is amended by striking ``and before August
31, 2009''.
(b) Effective Date.--The amendment made by this section shall take
effect as if included in section 206 of the Tax Increase Prevention and
Reconciliation Act of 2005.
SEC. 145. GREAT LAKES DOMESTIC SHIPPING TO NOT DISQUALIFY VESSEL FROM
TONNAGE TAX.
(a) In General.--Section 1355 (relating to definitions and special
rules) is amended by redesignating subsection (g) as subsection (h) and
by inserting after subsection (f) the following new subsection:
``(g) Great Lakes Domestic Shipping to Not Disqualify Vessel.--
``(1) In general.--If the electing corporation elects (at
such time and in such manner as the Secretary may require) to
apply this subsection for any taxable year to any qualifying
vessel which is used in qualified zone domestic trade during
the taxable year--
``(A) solely for purposes of subsection (a)(4),
such use shall be treated as use in United States
foreign trade (and not as use in United States domestic
trade), and
``(B) subsection (f) shall not apply with respect
to such vessel for such taxable year.
``(2) Effect of temporarily operating vessel in united
states domestic trade.--In the case of a qualifying vessel to
which this subsection applies--
``(A) In general.--An electing corporation shall be
treated as using such vessel in qualified zone domestic
trade during any period of temporary use in the United
States domestic trade (other than qualified zone
domestic trade) if the electing corporation gives
timely notice to the Secretary stating--
``(i) that it temporarily operates or has
operated in the United States domestic trade
(other than qualified zone domestic trade) a
qualifying vessel which had been used in the
United States foreign trade or qualified zone
domestic trade, and
``(ii) its intention to resume operation of
the vessel in the United States foreign trade
or qualified zone domestic trade.
``(B) Notice.--Notice shall be deemed timely if
given not later than the due date (including
extensions) for the corporation's tax return for the
taxable year in which the temporary cessation begins.
``(C) Period disregard in effect.--The period of
temporary use under subparagraph (A) continues until
the earlier of the date of which--
``(i) the electing corporation abandons its
intention to resume operations of the vessel in
the United States foreign trade or qualified
zone domestic trade, or
``(ii) the electing corporation resumes
operation of the vessel in the United States
foreign trade or qualified zone domestic trade.
``(D) No disregard if domestic trade use exceeds 30
days.--Subparagraph (A) shall not apply to any
qualifying vessel which is operated in the United
States domestic trade (other than qualified zone
domestic trade) for more than 30 days during the
taxable year.
``(3) Allocation of income and deductions to qualifying
shipping activities.--In the case of a qualifying vessel to
which this subsection applies, the Secretary shall prescribe
rules for the proper allocation of income, expenses, losses,
and deductions between the qualified shipping activities and
the other activities of such vessel.
``(4) Qualified zone domestic trade.--For purposes of this
subsection--
``(A) In general.--The term `qualified zone
domestic trade' means the transportation of goods or
passengers between places in the qualified zone if such
transportation is in the United States domestic trade.
``(B) Qualified zone.--The term `qualified zone'
means the Great Lakes Waterway and the St. Lawrence
Seaway.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 146. USE OF QUALIFIED MORTGAGE BONDS TO FINANCE RESIDENCES FOR
VETERANS WITHOUT REGARD TO FIRST-TIME HOMEBUYER
REQUIREMENT.
(a) In General.--Section 143(d)(2) (relating to exceptions to 3-
year requirement) is amended by striking ``and'' at the end of
subparagraph (B), by adding ``and'' at the end of subparagraph (C), and
by inserting after subparagraph (C) the following new subparagraph:
``(D) in the case of bonds issued after the date of
the enactment of this subparagraph and before January
1, 2008, financing of any residence for a veteran (as
defined in section 101 of title 38, United States
Code), if such veteran has not previously qualified for
and received such financing by reason of this
subparagraph,''.
(b) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of the enactment of this Act.
SEC. 147. EXCLUSION OF GAIN FROM SALE OF A PRINCIPAL RESIDENCE BY
CERTAIN EMPLOYEES OF THE INTELLIGENCE COMMUNITY.
(a) In General.--Subparagraph (A) of section 121(d)(9) (relating to
exclusion of gain from sale of principal residence) is amended by
striking ``duty'' and all that follows and inserting ``duty--
``(i) as a member of the uniformed
services,
``(ii) as a member of the Foreign Service
of the United States, or
``(iii) as an employee of the intelligence
community.''.
(b) Employee of Intelligence Community Defined.--Subparagraph (C)
of section 121(d)(9) is amended by redesignating clause (iv) as clause
(v) and by inserting after clause (iii) the following new clause:
``(iv) Employee of intelligence
community.--The term `employee of the
intelligence community' means an employee (as
defined by section 2105 of title 5, United
States Code) of--
``(I) the Office of the Director of
National Intelligence,
``(II) the Central Intelligence
Agency,
``(III) the National Security
Agency,
``(IV) the Defense Intelligence
Agency,
``(V) the National Geospatial-
Intelligence Agency,
``(VI) the National Reconnaissance
Office,
``(VII) any other office within the
Department of Defense for the
collection of specialized national
intelligence through reconnaissance
programs,
``(VIII) any of the intelligence
elements of the Army, the Navy, the Air
Force, the Marine Corps, the Federal
Bureau of Investigation, the Department
of Treasury, the Department of Energy,
and the Coast Guard,
``(IX) the Bureau of Intelligence
and Research of the Department of
State, or
``(X) any of the elements of the
Department of Homeland Security
concerned with the analyses of foreign
intelligence information.''.
(c) Special Rule.--Subparagraph (C) of section 121(d)(9), as
amended by subsection (b), is amended by adding at the end the
following new clause:
``(vi) Special rule relating to
intelligence community.--An employee of the
intelligence community shall not be treated as
serving on qualified extended duty unless such
duty is at a duty station located outside the
United States.''.
(d) Conforming Amendment.--The heading for section 121(d)(9) is
amended to read as follows: ``Uniformed services, foreign service, and
intelligence community''.
(e) Effective Date.--The amendments made by this section shall
apply to sales or exchanges after the date of the enactment of this Act
and before January 1, 2011.
SEC. 148. TREATMENT OF COKE AND COKE GAS.
(a) Nonapplication of Phaseout.--Section 45K(g)(2) is amended by
adding at the end the following new subparagraph:
``(D) Nonapplication of phaseout.--Subsection
(b)(1) shall not apply.''.
(b) Clarification of Qualifying Facility.--Section 45K(g)(1) is
amended by inserting ``(other than from petroleum based products)''
after ``coke or coke gas''.
(c) Effective Date.--The amendments made by this section shall take
effect as if included in section 1321 of the Energy Policy Act of 2005.
SEC. 149. SALE OF PROPERTY BY JUDICIAL OFFICERS.
(a) In General.--Section 1043(b) (relating to the sale of property
to comply with conflict-of-interest requirements) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by inserting ``, or a
judicial officer,'' after ``an officer or employee of
the executive branch''; and
(B) in subparagraph (B), by inserting ``judicial
canon,'' after ``any statute, regulation, rule,'';
(2) in paragraph (2)--
(A) in subparagraph (A), by inserting ``judicial
canon,'' after ``any Federal conflict of interest
statute, regulation, rule,''; and
(B) in subparagraph (B), by inserting after ``the
Director of the Office of Government Ethics,'' the
following: ``in the case of executive branch officers
or employees, or by the Judicial Conference of the
United States (or its designee), in the case of
judicial officers,''; and
(3) in paragraph (5)(B), by inserting ``judicial canon,''
after ``any statute, regulation, rule,''.
(b) Judicial Officer Defined.--Section 1043(b) is amended by adding
at the end the following new paragraph:
``(6) Judicial officer.--The term `judicial officer' means
the Chief Justice of the United States, the Associate Justices
of the Supreme Court, and the judges of the United States
courts of appeals, United States district courts, including the
district courts in Guam, the Northern Mariana Islands, and the
Virgin Islands, Court of Appeals for the Federal Circuit, Court
of International Trade, Tax Court, Court of Federal Claims,
Court of Appeals for Veterans Claims, United States Court of
Appeals for the Armed Forces, and any court created by Act of
Congress, the judges of which are entitled to hold office
during good behavior.''.
(c) Effective Date.--The amendments made by this section shall
apply to sales after the date of enactment of this Act.
SEC. 150. PREMIUMS FOR MORTGAGE INSURANCE.
(a) In General.--Section 163(h)(3) (relating to qualified residence
interest) is amended by adding at the end the following new
subparagraph:
``(E) Mortgage insurance premiums treated as
interest.--
``(i) In general.--Premiums paid or accrued
for qualified mortgage insurance by a taxpayer
during the taxable year in connection with
acquisition indebtedness with respect to a
qualified residence of the taxpayer shall be
treated for purposes of this section as
interest which is qualified residence interest.
``(ii) Phaseout.--The amount otherwise
treated as interest under clause (i) shall be
reduced (but not below zero) by 10 percent of
such amount for each $1,000 ($500 in the case
of a married individual filing a separate
return) (or fraction thereof) that the
taxpayer's adjusted gross income for the
taxable year exceeds $100,000 ($50,000 in the
case of a married individual filing a separate
return).
``(iii) Limitation.--Clause (i) shall not
apply with respect to any mortgage insurance
contracts issued before January 1, 2007.
``(iv) Termination.--Clause (i) shall not
apply to amounts--
``(I) paid or accrued after
December 31, 2007, or
``(II) properly allocable to any
period after such date.''.
(b) Definition and Special Rules.--Section 163(h)(4) (relating to
other definitions and special rules) is amended by adding at the end
the following new subparagraphs:
``(E) Qualified mortgage insurance.--The term
`qualified mortgage insurance' means--
``(i) mortgage insurance provided by the
Veterans Administration, the Federal Housing
Administration, or the Rural Housing
Administration, and
``(ii) private mortgage insurance (as
defined by section 2 of the Homeowners
Protection Act of 1998 (12 U.S.C. 4901), as in
effect on the date of the enactment of this
subparagraph).
``(F) Special rules for prepaid qualified mortgage
insurance.--Any amount paid by the taxpayer for
qualified mortgage insurance that is properly allocable
to any mortgage the payment of which extends to periods
that are after the close of the taxable year in which
such amount is paid shall be chargeable to capital
account and shall be treated as paid in such periods to
which so allocated. No deduction shall be allowed for
the unamortized balance of such account if such
mortgage is satisfied before the end of its term. The
preceding sentences shall not apply to amounts paid for
qualified mortgage insurance provided by the Veterans
Administration or the Rural Housing Administration.''.
(c) Information Returns Relating to Mortgage Insurance.--Section
6050H (relating to returns relating to mortgage interest received in
trade or business from individuals) is amended by adding at the end the
following new subsection:
``(h) Returns Relating to Mortgage Insurance Premiums.--
``(1) In general.--The Secretary may prescribe, by
regulations, that any person who, in the course of a trade or
business, receives from any individual premiums for mortgage
insurance aggregating $600 or more for any calendar year, shall
make a return with respect to each such individual. Such return
shall be in such form, shall be made at such time, and shall
contain such information as the Secretary may prescribe.
``(2) Statement to be furnished to individuals with respect
to whom information is required.--Every person required to make
a return under paragraph (1) shall furnish to each individual
with respect to whom a return is made a written statement
showing such information as the Secretary may prescribe. Such
written statement shall be furnished on or before January 31 of
the year following the calendar year for which the return under
paragraph (1) was required to be made.
``(3) Special rules.--For purposes of this subsection--
``(A) rules similar to the rules of subsection (c)
shall apply, and
``(B) the term `mortgage insurance' means--
``(i) mortgage insurance provided by the
Veterans Administration, the Federal Housing
Administration, or the Rural Housing
Administration, and
``(ii) private mortgage insurance (as
defined by section 2 of the Homeowners
Protection Act of 1998 (12 U.S.C. 4901), as in
effect on the date of the enactment of this
subsection).''.
(d) Effective Date.--The amendments made by this section shall
apply to amounts paid or accrued after December 31, 2006.
SEC. 151. MODIFICATION OF REFUNDS FOR KEROSENE USED IN AVIATION.
(a) In General.--Paragraph (4) of section 6427(l) (relating to
nontaxable uses of diesel fuel and kerosene) is amended to read as
follows:
``(4) Refunds for kerosene used in aviation.--
``(A) Kerosene used in commercial aviation.--In the
case of kerosene used in commercial aviation (as
defined in section 4083(b)) (other than supplies for
vessels or aircraft within the meaning of section
4221(d)(3)), paragraph (1) shall not apply to so much
of the tax imposed by section 4041 or 4081, as the case
may be, as is attributable to--
``(i) the Leaking Underground Storage Tank
Trust Fund financing rate imposed by such
section, and
``(ii) so much of the rate of tax specified
in section 4041(c) or 4081(a)(2)(A)(iii), as
the case may be, as does not exceed 4.3 cents
per gallon.
``(B) Kerosene used in noncommercial aviation.--In
the case of kerosene used in aviation that is not
commercial aviation (as so defined) (other than any use
which is exempt from the tax imposed by section 4041(c)
other than by reason of a prior imposition of tax),
paragraph (1) shall not apply to--
``(i) any tax imposed by section 4041(c),
and
``(ii) so much of the tax imposed by
section 4081 as is attributable to--
``(I) the Leaking Underground
Storage Tank Trust Fund financing rate
imposed by such section, and
``(II) so much of the rate of tax
specified in section 4081(a)(2)(A)(iii)
as does not exceed the rate specified
in section 4081(a)(2)(C)(ii).
``(C) Payments to ultimate, registered vendor.--
``(i) In general.--With respect to any
kerosene used in aviation (other than kerosene
described in clause (ii) or kerosene to which
paragraph (5) applies), if the ultimate
purchaser of such kerosene waives (at such time
and in such form and manner as the Secretary
shall prescribe) the right to payment under
paragraph (1) and assigns such right to the
ultimate vendor, then the Secretary shall pay
the amount which would be paid under paragraph
(1) to such ultimate vendor, but only if such
ultimate vendor--
``(I) is registered under section
4101, and
``(II) meets the requirements of
subparagraph (A), (B), or (D) of
section 6416(a)(1).
``(ii) Payments for kerosene used in
noncommercial aviation.--The amount which would
be paid under paragraph (1) with respect to any
kerosene to which subparagraph (B) applies
shall be paid only to the ultimate vendor of
such kerosene. A payment shall be made to such
vendor if such vendor--
``(I) is registered under section
4101, and
``(II) meets the requirements of
subparagraph (A), (B), or (D) of
section 6416(a)(1).''.
(b) Conforming Amendments.--
(1) Section 6427(l) is amended by striking paragraph (5)
and by redesignating paragraph (6) as paragraph (5).
(2) Section 4082(d)(2)(B) is amended by striking ``section
6427(l)(6)(B)'' and inserting ``section 6427(l)(5)(B)''.
(3) Section 6427(i)(4)(A) is amended--
(A) by striking ``paragraph (4)(B), (5), or (6)''
each place it appears and inserting ``paragraph (4)(C)
or (5)'', and
(B) by striking ``(l)(5), and (l)(6)'' and
inserting ``(l)(4)(C)(ii), and (l)(5)''.
(4) Section 6427(l)(1) is amended by striking ``paragraph
(4)(B)'' and inserting ``paragraph (4)(C)(i)''.
(5) Section 9502(d) is amended--
(A) in paragraph (2), by striking ``and (l)(5)'',
and
(B) in paragraph (3), by striking ``or (5)''.
(6) Section 9503(c)(7) is amended--
(A) by amending subparagraphs (A) and (B) to read
as follows:
``(A) 4.3 cents per gallon of kerosene subject to
section 6427(l)(4)(A) with respect to which a payment
has been made by the Secretary under section 6427(l),
and
``(B) 21.8 cents per gallon of kerosene subject to
section 6427(l)(4)(B) with respect to which a payment
has been made by the Secretary under section
6427(l).'', and
(B) in the matter following subparagraph (B), by
striking ``or (5)''.
(c) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to kerosene sold after September 30, 2005.
(2) Special rule for pending claims.--In the case of
kerosene sold for use in aviation (other than kerosene to which
section 6427(l)(4)(C)(ii) of the Internal Revenue Code of 1986
(as added by subsection (a)) applies or kerosene to which
section 6427(l)(5) of such Code (as redesignated by subsection
(b)) applies) after September 30, 2005, and before the date of
the enactment of this Act, the ultimate purchaser shall be
treated as having waived the right to payment under section
6427(l)(1) of such Code and as having assigned such right to
the ultimate vendor if such ultimate vendor has met the
requirements of subparagraph (A), (B), or (D) of section
6416(a)(1) of such Code.
(d) Special Rule for Kerosene Used in Aviation on a Farm for
Farming Purposes.--
(1) Refunds for purchases after december 31, 2004, and
before october 1, 2005.--The Secretary of the Treasury shall
pay to the ultimate purchaser of any kerosene which is used in
aviation on a farm for farming purposes and which was purchased
after December 31, 2004, and before October 1, 2005, an amount
equal to the aggregate amount of tax imposed on such fuel under
section 4041 or 4081 of the Internal Revenue Code of 1986, as
the case may be, reduced by any payment to the ultimate vendor
under section 6427(l)(5)(C) of such Code (as in effect on the
day before the date of the enactment of the Safe, Accountable,
Flexible, Efficient Transportation Equity Act: a Legacy for
Users).
(2) Use on a farm for farming purposes.--For purposes of
paragraph (1), kerosene shall be treated as used on a farm for
farming purposes if such kerosene is used for farming purposes
(within the meaning of section 6420(c)(3) of the Internal
Revenue Code of 1986) in carrying on a trade or business on a
farm situated in the United States. For purposes of the
preceding sentence, rules similar to the rules of section
6420(c)(4) of such Code shall apply.
(3) Time for filing claims.--No claim shall be allowed
under paragraph (1) unless the ultimate purchaser files such
claim before the date that is 3 months after the date of the
enactment of this Act.
(4) No double benefit.--No amount shall be paid under
paragraph (1) or section 6427(l) of the Internal Revenue Code
of 1986 with respect to any kerosene described in paragraph (1)
to the extent that such amount is in excess of the tax imposed
on such kerosene under section 4041 or 4081 of such Code, as
the case may be.
(5) Applicable laws.--For purposes of this subsection,
rules similar to the rules of section 6427(j) of the Internal
Revenue Code of 1986 shall apply.
SEC. 152. DEDUCTION FOR QUALIFIED TIMBER GAIN.
(a) In General.--Part I of subchapter P of chapter 1 is amended by
adding at the end the following new section:
``SEC. 1203. DEDUCTION FOR QUALIFIED TIMBER GAIN.
``(a) In General.--In the case of a taxpayer which elects the
application of this section for a taxable year, there shall be allowed
a deduction against gross income equal to 60 percent of the lesser of--
``(1) the taxpayer's qualified timber gain for such year,
or
``(2) the taxpayer's net capital gain for such year.
``(b) Qualified Timber Gain.--For purposes of this section, the
term `qualified timber gain' means, with respect to any taxpayer for
any taxable year, the excess (if any) of--
``(1) the sum of the taxpayer's gains described in
subsections (a) and (b) of section 631 for such year, over
``(2) the sum of the taxpayer's losses described in such
subsections for such year.
``(c) Special Rules for Pass-Thru Entities.--In the case of any
qualified timber gain of a pass-thru entity (as defined in section
1(h)(10))--
``(1) the election under this section shall be made
separately by each taxpayer subject to tax on such gain, and
``(2) the Secretary may prescribe such regulations as are
appropriate to apply this section to such gain.
``(d) Termination.--No disposition of timber after December 31,
2007, shall be taken into account under subsection (b).''.
(b) Coordination With Maximum Capital Gains Rates.--
(1) Taxpayers other than corporations.--Paragraph (2) of
section 1(h) is amended to read as follows:
``(2) Reduction of net capital gain.--For purposes of this
subsection, the net capital gain for any taxable year shall be
reduced (but not below zero) by the sum of--
``(A) the amount which the taxpayer takes into
account as investment income under section
163(d)(4)(B)(iii), and
``(B) in the case of a taxable year with respect to
which an election is in effect under section 1203, the
lesser of--
``(i) the amount described in paragraph (1)
of section 1203(a), or
``(ii) the amount described in paragraph
(2) of such section.''.
(2) Corporations.--Section 1201 is amended by redesignating
subsection (b) as subsection (c) and inserting after subsection
(a) the following new subsection:
``(b) Qualified Timber Gain Not Taken Into Account.--For purposes
of this section, in the case of a corporation with respect to which an
election is in effect under section 1203, the net capital gain for any
taxable year shall be reduced (but not below zero) by the corporation's
qualified timber gain (as defined in section 1203(b)).''.
(c) Deduction Allowed Whether or Not Individual Itemizes Other
Deductions.--Subsection (a) of section 62, as amended by this Act, is
amended by inserting before the last sentence the following new
paragraph:
``(22) Qualified timber gains.--The deduction allowed by
section 1203.''.
(d) Deduction Allowed in Computing Adjusted Current Earnings.--
Subparagraph (C) of section 56(g)(4) is amended by adding at the end
the following new clause:
``(vii) Deduction for qualified timber
gain.--Clause (i) shall not apply to any
deduction allowed under section 1203.''.
(e) Deduction Allowed in Computing Taxable Income of Electing Small
Business Trusts.--Subparagraph (C) of section 641(c)(2) is amended by
inserting after clause (iii) the following new clause:
``(iv) The deduction allowed under section
1203.''.
(f) Conforming Amendments.--
(1) Subparagraph (B) of section 172(d)(2) is amended to
read as follows:
``(B) the exclusion under section 1202 and the
deduction under section 1203 shall not be allowed.''.
(2) Paragraph (4) of section 642(c) is amended by striking
the first sentence and inserting the following: ``To the extent
that the amount otherwise allowable as a deduction under this
subsection consists of gain described in section 1202(a) or
qualified timber gain (as defined in section 1203(b)), proper
adjustment shall be made for any exclusion allowable to the
estate or trust under section 1202 and for any deduction
allowable to the estate or trust under section 1203.''.
(3) Paragraph (3) of section 643(a) is amended by striking
the last sentence and inserting the following: ``The exclusion
under section 1202 and the deduction under section 1203 shall
not be taken into account.''.
(4) Subparagraph (C) of section 643(a)(6) is amended to
read as follows:
``(C) Paragraph (3) shall not apply to a foreign
trust. In the case of such a trust--
``(i) there shall be included gains from
the sale or exchange of capital assets, reduced
by losses from such sales or exchanges to the
extent such losses do not exceed gains from
such sales or exchanges, and
``(ii) the deduction under section 1203
shall not be taken into account.''.
(5) Paragraph (4) of section 691(c) is amended by inserting
``1203,'' after ``1202,''.
(6) Paragraph (2) of section 871(a) is amended by striking
``section 1202'' and inserting ``sections 1202 and 1203''.
(7) The table of sections for part I of subchapter P of
chapter 1 is amended by adding at the end the following new
item:
``Sec. 1203. Deduction for qualified timber gain.''.
(g) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment
of this Act.
(2) Taxable years which include date of enactment.--In the
case of any taxable year which includes the date of the
enactment of this Act, for purposes of the Internal Revenue
Code of 1986, the taxpayer's qualified timber gain shall not
exceed the excess that would be described in section 1203(b) of
such Code, as added by this section, if only dispositions of
timber after such date were taken into account.
SEC. 153. CREDIT TO HOLDERS OF RURAL RENAISSANCE BONDS.
(a) In General.--Subpart H of part IV of subchapter A of chapter 1
(relating to credits against tax) is amended by adding at the end the
following new section:
``SEC. 54A. CREDIT TO HOLDERS OF RURAL RENAISSANCE BONDS.
``(a) Allowance of Credit.--In the case of a taxpayer who holds a
rural renaissance bond on a credit allowance date of such bond, which
occurs during the taxable year, there shall be allowed as a credit
against the tax imposed by this chapter for such taxable year an amount
equal to the sum of the credits determined under subsection (b) with
respect to credit allowance dates during such year on which the
taxpayer holds such bond.
``(b) Amount of Credit.--
``(1) In general.--The amount of the credit determined
under this subsection with respect to any credit allowance date
for a rural renaissance bond is 25 percent of the annual credit
determined with respect to such bond.
``(2) Annual credit.--The annual credit determined with
respect to any rural renaissance bond is the product of--
``(A) the credit rate determined by the Secretary
under paragraph (3) for the day on which such bond was
sold, multiplied by
``(B) the outstanding face amount of the bond.
``(3) Determination.--For purposes of paragraph (2), with
respect to any rural renaissance bond, the Secretary shall
determine daily or caused to be determined daily a credit rate
which shall apply to the first day on which there is a binding,
written contract for the sale or exchange of the bond. The
credit rate for any day is the credit rate which the Secretary
or the Secretary's designee estimates will permit the issuance
of rural renaissance bonds with a specified maturity or
redemption date without discount and without interest cost to
the qualified issuer.
``(4) Credit allowance date.--For purposes of this section,
the term `credit allowance date' means--
``(A) March 15,
``(B) June 15,
``(C) September 15, and
``(D) December 15.
Such term also includes the last day on which the bond is
outstanding.
``(5) Special rule for issuance and redemption.--In the
case of a bond which is issued during the 3-month period ending
on a credit allowance date, the amount of the credit determined
under this subsection with respect to such credit allowance
date shall be a ratable portion of the credit otherwise
determined based on the portion of the 3-month period during
which the bond is outstanding. A similar rule shall apply when
the bond is redeemed or matures.
``(c) Limitation Based on Amount of Tax.--The credit allowed under
subsection (a) for any taxable year shall not exceed the excess of--
``(1) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(2) the sum of the credits allowable under this part
(other than subpart C and this section).
``(d) Rural Renaissance Bond.--For purposes of this section--
``(1) In general.--The term `rural renaissance bond' means
any bond issued as part of an issue if--
``(A) the bond is issued by a qualified issuer,
``(B) 95 percent or more of the proceeds from the
sale of such issue are to be used for capital
expenditures incurred for 1 or more qualified projects,
``(C) the qualified issuer designates such bond for
purposes of this section and the bond is in registered
form, and
``(D) the issue meets the requirements of
subsections (e) and (h).
``(2) Qualified project; special use rules.--
``(A) In general.--The term `qualified project'
means 1 or more projects described in subparagraph (B)
located in a rural area.
``(B) Projects described.--A project described in
this subparagraph is--
``(i) a water or waste treatment project,
``(ii) an affordable housing project,
``(iii) a community facility project,
including hospitals, fire and police stations,
and nursing and assisted-living facilities,
``(iv) a value-added agriculture or
renewable energy facility project for
agricultural producers or farmer-owned
entities, including any project to promote the
production, processing, or retail sale of
ethanol (including fuel at least 85 percent of
the volume of which consists of ethanol),
biodiesel, animal waste, biomass, raw
commodities, or wind as a fuel,
``(v) a distance learning or telemedicine
project,
``(vi) a rural utility infrastructure
project, including any electric or telephone
system,
``(vii) a project to expand broadband
technology,
``(viii) a rural teleworks project, and
``(ix) any project described in any
preceding clause carried out by the Delta
Regional Authority.
``(C) Special rules.--For purposes of this
paragraph--
``(i) any project described in subparagraph
(B)(iv) for a farmer-owned entity may be
considered a qualified project if such entity
is located in a rural area, or in the case of a
farmer-owned entity the headquarters of which
are located in a nonrural area, if the project
is located in a rural area, and
``(ii) any project for a farmer-owned
entity which is a facility described in
subparagraph (B)(iv) for agricultural producers
may be considered a qualified project
regardless of whether the facility is located
in a rural or nonrural area.
``(3) Special use rules.--
``(A) Refinancing rules.--For purposes of paragraph
(1)(B), a qualified project may be refinanced with
proceeds of a rural renaissance bond only if the
indebtedness being refinanced (including any obligation
directly or indirectly refinanced by such indebtedness)
was originally incurred after the date of the enactment
of this section.
``(B) Reimbursement.--For purposes of paragraph
(1)(B), a rural renaissance bond may be issued to
reimburse a borrower for amounts paid after the date of
the enactment of this section with respect to a
qualified project, but only if--
``(i) prior to the payment of the original
expenditure, the borrower declared its intent
to reimburse such expenditure with the proceeds
of a rural renaissance bond,
``(ii) not later than 60 days after payment
of the original expenditure, the qualified
issuer adopts an official intent to reimburse
the original expenditure with such proceeds,
and
``(iii) the reimbursement is made not later
than 18 months after the date the original
expenditure is paid.
``(C) Treatment of changes in use.--For purposes of
paragraph (1)(B), the proceeds of an issue shall not be
treated as used for a qualified project to the extent
that a borrower takes any action within its control
which causes such proceeds not to be used for a
qualified project. The Secretary shall prescribe
regulations specifying remedial actions that may be
taken (including conditions to taking such remedial
actions) to prevent an action described in the
preceding sentence from causing a bond to fail to be a
rural renaissance bond.
``(e) Maturity Limitations.--
``(1) Duration of term.--A bond shall not be treated as a
rural renaissance bond if the maturity of such bond exceeds the
maximum term determined by the Secretary under paragraph (2)
with respect to such bond.
``(2) Maximum term.--During each calendar month, the
Secretary shall determine the maximum term permitted under this
paragraph for bonds issued during the following calendar month.
Such maximum term shall be the term which the Secretary
estimates will result in the present value of the obligation to
repay the principal on the bond being equal to 50 percent of
the face amount of such bond. Such present value shall be
determined without regard to the requirements of paragraph (3)
and using as a discount rate the average annual interest rate
of tax-exempt obligations having a term of 10 years or more
which are issued during the month. If the term as so determined
is not a multiple of a whole year, such term shall be rounded
to the next highest whole year.
``(3) Ratable principal amortization required.--A bond
shall not be treated as a rural renaissance 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
calendar year that the issue is outstanding.
``(f) Limitation on Amount of Bonds Designated.--
``(1) National limitation.--There is a rural renaissance
bond limitation of $200,000,000.
``(2) Allocation by secretary.--The Secretary shall
allocate the amount described in paragraph (1) among qualified
projects in such manner as the Secretary determines
appropriate.
``(g) Credit Included in Gross Income.--Gross income includes the
amount of the credit allowed to the taxpayer under this section
(determined without regard to subsection (c)) and the amount so
included shall be treated as interest income.
``(h) Special Rules Relating to Expenditures.--
``(1) In general.--An issue shall be treated as meeting the
requirements of this subsection if, as of the date of issuance,
the qualified issuer reasonably expects--
``(A) at least 95 percent of the proceeds from the
sale of the issue are to be spent for 1 or more
qualified projects within the 5-year period beginning
on the date of issuance of the rural renaissance bond,
``(B) a binding commitment with a third party to
spend at least 10 percent of the proceeds from the sale
of the issue will be incurred within the 6-month period
beginning on the date of issuance of the rural
renaissance bond or, in the case of a rural renaissance
bond, the proceeds of which are to be loaned to 2 or
more borrowers, such binding commitment will be
incurred within the 6-month period beginning on the
date of the loan of such proceeds to a borrower, and
``(C) such projects will be completed with due
diligence and the proceeds from the sale of the issue
will be spent with due diligence.
``(2) Extension of period.--Upon submission of a request
prior to the expiration of the period described in paragraph
(1)(A), the Secretary may extend such period if the qualified
issuer establishes that the failure to satisfy the 5-year
requirement is due to reasonable cause and the related projects
will continue to proceed with due diligence.
``(3) Failure to spend required amount of bond proceeds
within 5 years.--To the extent that less than 95 percent of the
proceeds of such issue are expended by the close of the 5-year
period beginning on the date of issuance (or if an extension
has been obtained under paragraph (2), by the close of the
extended period), the qualified issuer shall redeem all of the
nonqualified bonds within 90 days after the end of such period.
For purposes of this paragraph, the amount of the nonqualified
bonds required to be redeemed shall be determined in the same
manner as under section 142.
``(i) Special Rules Relating to Arbitrage.--A bond which is part of
an issue shall not be treated as a rural renaissance bond unless, with
respect to the issue of which the bond is a part, the qualified issuer
satisfies the arbitrage requirements of section 148 with respect to
proceeds of the issue.
``(j) Qualified Issuer.--For purposes of this section--
``(1) In general.--The term `qualified issuer' means any
not-for-profit cooperative lender which has as of the date of
the enactment of this section received a guarantee under
section 306 of the Rural Electrification Act and which meets
the requirement of paragraph (2).
``(2) User fee requirement.--The requirement of this
paragraph is met if the issuer of any rural renaissance bond
makes grants for qualified projects as defined under subsection
(d)(2) on a semi-annual basis every year that such bond is
outstanding in an annual amount equal to one-half of the rate
on United States Treasury Bills of the same maturity multiplied
by the outstanding principal balance of rural renaissance bonds
issued by such issuer.
``(k) Special Rules Relating to Pool Bonds.--No portion of a pooled
financing bond may be allocable to a loan unless the borrower has
entered into a written loan commitment for such portion prior to the
issue date of such issue.
``(l) Other Definitions and Special Rules.--For purposes of this
section--
``(1) Bond.--The term `bond' includes any obligation.
``(2) Pooled financing bond.--The term `pooled financing
bond' shall have the meaning given such term by section
149(f)(4)(A).
``(3) Rural area.--The term `rural area' means any area
other than--
``(A) a city or town which has a population of
greater than 50,000 inhabitants, or
``(B) the urbanized area contiguous and adjacent to
such a city or town.
``(4) Partnership; s corporation; and other pass-thru
entities.--
``(A) In general.--Under regulations prescribed by
the Secretary, in the case of a partnership, trust, S
corporation, or other pass-thru entity, rules similar
to the rules of section 41(g) shall apply with respect
to the credit allowable under subsection (a).
``(B) No basis adjustment.--In the case of a bond
held by a partnership or an S corporation, rules
similar to the rules under section 1397E(l) shall
apply.
``(5) Bonds held by regulated investment companies.--If any
rural renaissance bond is held by a regulated investment
company, the credit determined under subsection (a) shall be
allowed to shareholders of such company under procedures
prescribed by the Secretary.
``(6) Reporting.--Issuers of rural renaissance bonds shall
submit reports similar to the reports required under section
149(e).''.
(b) Reporting.--Subsection (d) of section 6049 (relating to returns
regarding payments of interest) is amended by adding at the end the
following new paragraph:
``(9) Reporting of credit on rural renaissance bonds.--
``(A) In general.--For purposes of subsection (a),
the term `interest' includes amounts includible in
gross income under section 54A(f) and such amounts
shall be treated as paid on the credit allowance date
(as defined in section 54A(b)(4)).
``(B) Reporting to corporations, etc.--Except as
otherwise provided in regulations, in the case of any
interest described in subparagraph (A), subsection
(b)(4) shall be applied without regard to subparagraphs
(A), (H), (I), (J), (K), and (L)(i) of such subsection.
``(C) Regulatory authority.--The Secretary may
prescribe such regulations as are necessary or
appropriate to carry out the purposes of this
paragraph, including regulations which require more
frequent or more detailed reporting.''.
(c) Conforming Amendments.--
(1) The table of sections for subpart H of part IV of
subchapter A of chapter 1 is amended by adding at the end the
following new item:
``Sec. 54A. Credit to holders of rural
renaissance bonds.''.
(2) Section 54(c)(2) is amended by inserting ``, section
54A,'' after ``subpart C''.
(3) Section 1400N(l)(3)(B) is amended by inserting ``,
section 54A,'' after ``subpart C''.
(d) Issuance of Regulations.--The Secretary of Treasury shall issue
regulations required under section 54A of the Internal Revenue Code of
1986 (as added by this section) not later than 120 days after the date
of the enactment of this Act.
(e) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of the enactment of this Act and
before January 1, 2010.
SEC. 154. RESTORATION OF DEDUCTION FOR TRAVEL EXPENSES OF SPOUSE, ETC.
ACCOMPANYING TAXPAYER ON BUSINESS TRAVEL.
(a) In General.--Subsection (m) of section 274 (relating to
additional limitations on travel expenses) is amended by adding at the
end the following new paragraph:
``(4) Termination.--Paragraph (3) shall not apply to any
expense paid or incurred after the date of the enactment of
this paragraph and before January 1, 2008.''.
(b) Effective Date.--The amendment made by this section shall apply
to amounts paid or incurred after the date of the enactment of this
Act.
SEC. 155. TECHNICAL CORRECTIONS.
(a) Technical Correction Relating to Look-Through Treatment of
Payments Between Related Controlled Foreign Corporations Under the
Foreign Personal Holding Company Rules.--
(1) In general.--
(A) The first sentence of section 954(c)(6)(A), as
amended by section 103(b) of the Tax Increase
Prevention and Reconciliation Act of 2005, is amended
by striking ``which is not subpart F income'' and
inserting ``which is neither subpart F income nor
income treated as effectively connected with the
conduct of a trade or business in the United States''.
(B) Section 954(c)(6)(A), as so amended, is amended
by striking the last sentence and inserting the
following: ``The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry
out this paragraph, including such regulations as may
be necessary or appropriate to prevent the abuse of the
purposes of this paragraph.''
(2) Effective date.--The amendments made by this subsection
shall take effect as if included in section 103(b) of the Tax
Increase Prevention and Reconciliation Act of 2005.
(b) Technical Correction Regarding Authority to Exercise Reasonable
Cause and Good Faith Exception.--
(1) In general.--Section 903(d)(2)(B)(iii) of the American
Jobs Creation Act of 2004, as amended by section 303(a) of the
Gulf Opportunity Zone Act of 2005, is amended by inserting ``or
the Secretary's delegate'' after ``the Secretary of the
Treasury''.
(2) Effective date.--The amendment made by this subsection
shall take effect as if included in the provisions of the
American Jobs Creation Act of 2004 to which it relates.
TITLE II--INCREASE IN FEDERAL MINIMUM WAGE
SEC. 201. MINIMUM WAGE.
(a) In General.--Section 6(a)(1) of the Fair Labor Standards Act of
1938 (29 U.S.C. 206(a)(1)) is amended to read as follows:
``(1) except as otherwise provided in this section, not
less than--
``(A) $5.85 an hour, beginning on the 60th day
after the date of enactment of the Fair Minimum Wage
Act of 2005;
``(B) $6.55 an hour, beginning 12 months after that
60th day; and
``(C) $7.25 an hour, beginning 24 months after that
60th day;''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect 60 days after the date of enactment of this Act.
SEC. 202. APPLICABILITY OF MINIMUM WAGE TO THE COMMONWEALTH OF THE
NORTHERN MARIANA ISLANDS.
(a) In General.--Section 6 of the Fair Labor Standards Act of 1938
(29 U.S.C. 206) shall apply to the Commonwealth of the Northern Mariana
Islands.
(b) Transition.--Notwithstanding subsection (a), the minimum wage
applicable to the Commonwealth of the Northern Mariana Islands under
section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C.
206(a)(1)) shall be--
(1) $3.55 an hour, beginning on the 60th day after the date
of enactment of this Act; and
(2) increased by $0.50 an hour (or such lesser amount as
may be necessary to equal the minimum wage under section
6(a)(1) of such Act), beginning 6 months after the date of
enactment of this Act and every 6 months thereafter until the
minimum wage applicable to the Commonwealth of the Northern
Mariana Islands under this subsection is equal to the minimum
wage set forth in such section.
TITLE III--SURFACE MINING CONTROL AND RECLAMATION ACT AMENDMENTS OF
2006
SEC. 301. SHORT TITLE.
This title may be cited as the ``Surface Mining Control and
Reclamation Act Amendments of 2006''.
Subtitle A--Mining Control and Reclamation
SEC. 311. ABANDONED MINE RECLAMATION FUND AND PURPOSES.
(a) In General.--Section 401 of the Surface Mining Control and
Reclamation Act of 1977 (30 U.S.C. 1231) is amended--
(1) in subsection (c)--
(A) by striking paragraphs (2) and (6); and
(B) by redesignating paragraphs (3), (4), and (5)
and paragraphs (7) through (13) as paragraphs (2)
through (11), respectively;
(2) by striking subsection (d) and inserting the following:
``(d) Availability of Moneys; No Fiscal Year Limitation.--
``(1) In general.--Moneys from the fund for expenditures
under subparagraphs (A) through (D) of section 402(g)(3) shall
be available only when appropriated for those subparagraphs.
``(2) No fiscal year limitation.--Appropriations described
in paragraph (1) shall be made without fiscal year limitation.
``(3) Other purposes.--Moneys from the fund shall be
available for all other purposes of this title without prior
appropriation as provided in subsection (f).'';
(3) in subsection (e)--
(A) in the second sentence, by striking ``the needs
of such fund'' and inserting ``achieving the purposes
of the transfers under section 402(h)''; and
(B) in the third sentence, by inserting before the
period the following: ``for the purpose of the
transfers under section 402(h)''; and
(4) by adding at the end the following:
``(f) General Limitation on Obligation Authority.--
``(1) In general.--From amounts deposited into the fund
under subsection (b), the Secretary shall distribute during
each fiscal year beginning after September 30, 2007, an amount
determined under paragraph (2).
``(2) Amounts.--
``(A) For fiscal years 2008 through 2022.--For each
of fiscal years 2008 through 2022, the amount
distributed by the Secretary under this subsection
shall be equal to--
``(i) the amounts deposited into the fund
under paragraphs (1), (2), and (4) of
subsection (b) for the preceding fiscal year
that were allocated under paragraphs (1) and
(5) of section 402(g); plus
``(ii) the amount needed for the adjustment
under section 402(g)(8) for the current fiscal
year.
``(B) Fiscal years 2023 and thereafter.--For fiscal
year 2023 and each fiscal year thereafter, to the
extent that funds are available, the Secretary shall
distribute an amount equal to the amount distributed
under subparagraph (A) during fiscal year 2022.
``(3) Distribution.--
``(A) In general.--Except as provided in
subparagraph (B), for each fiscal year, of the amount
to be distributed to States and Indian tribes pursuant
to paragraph (2), the Secretary shall distribute--
``(i) the amounts allocated under paragraph
(1) of section 402(g), the amounts allocated
under paragraph (5) of section 402(g), and any
amount reallocated under section 411(h)(3) in
accordance with section 411(h)(2), for grants
to States and Indian tribes under section
402(g)(5); and
``(ii) the amounts allocated under section
402(g)(8).
``(B) Exclusion.--Beginning on October 1, 2007,
certified States shall be ineligible to receive amounts
under section 402(g)(1).
``(4) Availability.--Amounts in the fund available to the
Secretary for obligation under this subsection shall be
available until expended.
``(5) Addition.--
``(A) In general.--Subject to subparagraph (B), the
amount distributed under this subsection for each
fiscal year shall be in addition to the amount
appropriated from the fund during the fiscal year.
``(B) Exceptions.--Notwithstanding paragraph (3),
the amount distributed under this subsection for the
first 4 fiscal years beginning on and after October 1,
2007, shall be equal to the following percentage of the
amount otherwise required to be distributed:
``(i) 50 percent in fiscal year 2008.
``(ii) 50 percent in fiscal year 2009.
``(iii) 75 percent in fiscal year 2010.
``(iv) 75 percent in fiscal year 2011.''.
(b) Conforming Amendment.--Section 712(b) of the Surface Mining
Control and Reclamation Act of 1977 (30 U.S.C. 1302(b)) is amended by
striking ``section 401(c)(11)'' and inserting ``section 401(c)(9)''.
SEC. 312. RECLAMATION FEE.
(a) Amounts.--
(1) Fiscal years 2008-2012.--Effective October 1, 2007,
section 402(a) of the Surface Mining Control and Reclamation
Act of 1977 (30 U.S.C. 1232(a)) is amended--
(A) by striking ``35'' and inserting ``31.5'';
(B) by striking ``15'' and inserting ``13.5''; and
(C) by striking ``10 cents'' and inserting ``9
cents''.
(2) Fiscal years 2013-2021.--Effective October 1, 2012,
section 402(a) of the Surface Mining Control and Reclamation
Act of 1977 (30 U.S.C. 1232(a)) (as amended by paragraph (1))
is amended--
(A) by striking ``31.5'' and inserting ``28'';
(B) by striking ``13.5'' and inserting ``12''; and
(C) by striking ``9 cents'' and inserting ``8
cents''.
(b) Duration.--Effective September 30, 2007, section 402(b) of the
Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232(b))
(as amended by section 7007 of the Emergency Supplemental
Appropriations Act for Defense, the Global War on Terror, and Hurricane
Recovery, 2006 (Public Law 109-234; 120 Stat. 484)) is amended by
striking ``September 30, 2007'' and all that follows through the end of
the sentence and inserting ``September 30, 2021.''.
(c) Allocation of Funds.--Section 402(g) of the Surface Mining
Control and Reclamation Act of 1977 (30 U.S.C. 1232(g)) is amended--
(1) in paragraph (1)(D)--
(A) by inserting ``(except for grants awarded
during fiscal years 2008, 2009, and 2010 to the extent
not expended within 5 years)'' after ``this
paragraph''; and
(B) by striking ``in any area under paragraph (2),
(3), (4), or (5)'' and inserting ``under paragraph
(5)'';
(2) by striking paragraph (2) and inserting:
``(2) In making the grants referred to in paragraph (1)(C) and the
grants referred to in paragraph (5), the Secretary shall ensure strict
compliance by the States and Indian tribes with the priorities
described in section 403(a) until a certification is made under section
411(a).'';
(3) in paragraph (3)--
(A) in the matter preceding subparagraph (A), by
striking ``paragraphs (2) and'' and inserting
``paragraph'';
(B) in subparagraph (A), by striking ``401(c)(11)''
and inserting ``401(c)(9)''; and
(C) by adding at the end the following:
``(E) For the purpose of paragraph (8).'';
(4) in paragraph (5)--
(A) by inserting ``(A)'' after ``(5)'';
(B) in the first sentence, by striking ``40'' and
inserting ``60'';
(C) in the last sentence, by striking ``Funds
allocated or expended by the Secretary under paragraphs
(2), (3), or (4)'' and inserting ``Funds made available
under paragraph (3) or (4)''; and
(D) by adding at the end the following:
``(B) Any amount that is reallocated and available under section
411(h)(3) shall be in addition to amounts that are allocated under
subparagraph (A).''; and
(5) by striking paragraphs (6) through (8) and inserting
the following:
``(6)(A) Any State with an approved abandoned mine reclamation
program pursuant to section 405 may receive and retain, without regard
to the 3-year limitation referred to in paragraph (1)(D), up to 30
percent of the total of the grants made annually to the State under
paragraphs (1) and (5) if those amounts are deposited into an acid mine
drainage abatement and treatment fund established under State law, from
which amounts (together with all interest earned on the amounts) are
expended by the State for the abatement of the causes and the treatment
of the effects of acid mine drainage in a comprehensive manner within
qualified hydrologic units affected by coal mining practices.
``(B) In this paragraph, the term `qualified hydrologic unit' means
a hydrologic unit--
``(i) in which the water quality has been significantly
affected by acid mine drainage from coal mining practices in a
manner that adversely impacts biological resources; and
``(ii) that contains land and water that are--
``(I) eligible pursuant to section 404 and include
any of the priorities described in section 403(a); and
``(II) the subject of expenditures by the State
from the forfeiture of bonds required under section 509
or from other States sources to abate and treat acid
mine drainage.
``(7) In complying with the priorities described in section 403(a),
any State or Indian tribe may use amounts available in grants made
annually to the State or tribe under paragraphs (1) and (5) for the
reclamation of eligible land and water described in section 403(a)(3)
before the completion of reclamation projects under paragraphs (1) and
(2) of section 403(a) only if the expenditure of funds for the
reclamation is done in conjunction with the expenditure before, on, or
after the date of enactment of the Surface Mining Control and
Reclamation Act Amendments of 2006 of funds for reclamation projects
under paragraphs (1) and (2) of section 403(a).
``(8)(A) In making funds available under this title, the Secretary
shall ensure that the grant awards total not less than $3,000,000
annually to each State and each Indian tribe having an approved
abandoned mine reclamation program pursuant to section 405 and eligible
land and water pursuant to section 404, so long as an allocation of
funds to the State or tribe is necessary to achieve the priorities
stated in paragraphs (1) and (2) of section 403(a).
``(B) Notwithstanding any other provision of law, this paragraph
applies to the States of Tennessee and Missouri.''.
(d) Transfers of Interest Earned by Abandoned Mine Reclamation
Fund.--Section 402 of the Surface Mining Control and Reclamation Act of
1977 (30 U.S.C. 1232) is amended by striking subsection (h) and
inserting the following:
``(h) Transfers of Interest Earned by Fund.--
``(1) In general.--
``(A) Transfers to combined benefit fund.--As soon
as practicable after the beginning of fiscal year 2007
and each fiscal year thereafter, and before making any
allocation with respect to the fiscal year under
subsection (g), the Secretary shall use an amount not
to exceed the amount of interest that the Secretary
estimates will be earned and paid to the fund during
the fiscal year to make the transfer described in
paragraph (2)(A).
``(B) Transfers to 1992 and 1993 plans.--As soon as
practicable after the beginning of fiscal year 2008 and
each fiscal year thereafter, and before making any
allocation with respect to the fiscal year under
subsection (g), the Secretary shall use an amount not
to exceed the amount of interest that the Secretary
estimates will be earned and paid to the fund during
the fiscal year (reduced by the amount used under
subparagraph (A)) to make the transfers described in
paragraphs (2)(B) and (2)(C).
``(2) Transfers described.--The transfers referred to in
paragraph (1) are the following:
``(A) United mine workers of america combined
benefit fund.--A transfer to the United Mine Workers of
America Combined Benefit Fund equal to the amount that
the trustees of the Combined Benefit Fund estimate will
be expended from the fund for the fiscal year in which
the transfer is made, reduced by--
``(i) the amount the trustees of the
Combined Benefit Fund estimate the Combined
Benefit Fund will receive during the fiscal
year in--
``(I) required premiums; and
``(II) payments paid by Federal
agencies in connection with benefits
provided by the Combined Benefit Fund;
and
``(ii) the amount the trustees of the
Combined Benefit Fund estimate will be expended
during the fiscal year to provide health
benefits to beneficiaries who are unassigned
beneficiaries solely as a result of the
application of section 9706(h)(1) of the
Internal Revenue Code of 1986, but only to the
extent that such amount does not exceed the
amounts described in subsection (i)(1)(A) that
the Secretary estimates will be available to
pay such estimated expenditures.
``(B) United mine workers of america 1992 benefit
plan.--A transfer to the United Mine Workers of America
1992 Benefit Plan, in an amount equal to the difference
between--
``(i) the amount that the trustees of the
1992 UMWA Benefit Plan estimate will be
expended from the 1992 UMWA Benefit Plan during
the next calendar year to provide the benefits
required by the 1992 UMWA Benefit Plan on the
date of enactment of this subparagraph; minus
``(ii) the amount that the trustees of the
1992 UMWA Benefit Plan estimate the 1992 UMWA
Benefit Plan will receive during the next
calendar year in--
``(I) required monthly per
beneficiary premiums, including the
amount of any security provided to the
1992 UMWA Benefit Plan that is
available for use in the provision of
benefits; and
``(II) payments paid by Federal
agencies in connection with benefits
provided by the 1992 UMWA benefit plan.
``(C) Multiemployer health benefit plan.--A
transfer to the Multiemployer Health Benefit Plan
established after July 20, 1992, by the parties that
are the settlors of the 1992 UMWA Benefit Plan referred
to in subparagraph (B) (referred to in this
subparagraph and subparagraph (D) as `the Plan'), in an
amount equal to the excess (if any) of--
``(i) the amount that the trustees of the
Plan estimate will be expended from the Plan
during the next calendar year, to provide
benefits no greater than those provided by the
Plan as of December 31, 2006; over
``(ii) the amount that the trustees
estimated the Plan will receive during the next
calendar year in payments paid by Federal
agencies in connection with benefits provided
by the Plan.
Such excess shall be calculated by taking into account
only those beneficiaries actually enrolled in the Plan
as of December 31, 2006, who are eligible to receive
benefits under the Plan on the first day of the
calendar year for which the transfer is made.
``(D) Individuals considered enrolled.--For
purposes of subparagraph (C), any individual who was
eligible to receive benefits from the Plan as of the
date of enactment of this subsection, even though
benefits were being provided to the individual pursuant
to a settlement agreement approved by order of a
bankruptcy court entered on or before September 30,
2004, will be considered to be actually enrolled in the
Plan and shall receive benefits from the Plan beginning
on December 31, 2006.
``(3) Adjustment.--If, for any fiscal year, the amount of a
transfer under subparagraph (A), (B), or (C) of paragraph (2)
is more or less than the amount required to be transferred
under that subparagraph, the Secretary shall appropriately
adjust the amount transferred under that subparagraph for the
next fiscal year.
``(4) Additional amounts.--
``(A) Previously credited interest.--
Notwithstanding any other provision of law, any
interest credited to the fund that has not previously
been transferred to the Combined Benefit Fund referred
to in paragraph (2)(A) under this section--
``(i) shall be held in reserve by the
Secretary until such time as necessary to make
the payments under subparagraphs (A) and (B) of
subsection (i)(1), as described in clause (ii);
and
``(ii) in the event that the amounts
described in subsection (i)(1) are insufficient
to make the maximum payments described in
subparagraphs (A) and (B) of subsection (i)(1),
shall be used by the Secretary to supplement
the payments so that the maximum amount
permitted under those paragraphs is paid.
``(B) Previously allocated amounts.--All amounts
allocated under subsection (g)(2) before the date of
enactment of this subparagraph for the program
described in section 406, but not appropriated before
that date, shall be available to the Secretary to make
the transfers described in paragraph (2).
``(C) Adequacy of previously credited interest.--
The Secretary shall--
``(i) consult with the trustees of the
plans described in paragraph (2) at reasonable
intervals; and
``(ii) notify Congress if a determination
is made that the amounts held in reserve under
subparagraph (A) are insufficient to meet
future requirements under subparagraph (A)(ii).
``(D) Additional reserve amounts.--In addition to
amounts held in reserve under subparagraph (A), there
is authorized to be appropriated such sums as may be
necessary for transfer to the fund to carry out the
purposes of subparagraph (A)(ii).
``(E) Inapplicability of cap.--The limitation
described in subsection (i)(3)(A) shall not apply to
payments made from the reserve fund under this
paragraph.
``(5) Limitations.--
``(A) Availability of funds for next fiscal year.--
The Secretary may make transfers under subparagraphs
(B) and (C) of paragraph (2) for a calendar year only
if the Secretary determines, using actuarial
projections provided by the trustees of the Combined
Benefit Fund referred to in paragraph (2)(A), that
amounts will be available under paragraph (1), after
the transfer, for the next fiscal year for making the
transfer under paragraph (2)(A).
``(B) Rate of contributions of obligors.--
``(i) In general.--
``(I) Rate.--A transfer under
paragraph (2)(C) shall not be made for
a calendar year unless the persons that
are obligated to contribute to the plan
referred to in paragraph (2)(C) on the
date of the transfer are obligated to
make the contributions at rates that
are no less than those in effect on the
date which is 30 days before the date
of enactment of this subsection.
``(II) Application.--The
contributions described in subclause
(I) shall be applied first to the
provision of benefits to those plan
beneficiaries who are not described in
paragraph (2)(C)(ii).
``(ii) Initial contributions.--
``(I) In general.--From the date of
enactment of the Surface Mining Control
and Reclamation Act Amendments of 2006
through December 31, 2010, the persons
that, on the date of enactment of that
Act, are obligated to contribute to the
plan referred to in paragraph (2)(C)
shall be obligated, collectively, to
make contributions equal to the amount
described in paragraph (2)(C), less the
amount actually transferred due to the
operation of subparagraph (C).
``(II) First calendar year.--
Calendar year 2006 is the first
calendar year for which contributions
are required under this clause.
``(III) Amount of contribution for
2006.--Except as provided in subclause
(IV), the amount described in paragraph
(2)(C) for calendar year 2006 shall be
calculated as if paragraph (2)(C) had
been in effect during 2005.
``(IV) Limitation.--The
contributions required under this
clause for calendar year 2006 shall not
exceed the amount necessary for
solvency of the plan described in
paragraph (2)(C), measured as of
December 31, 2006 and taking into
account all assets held by the plan as
of that date.
``(iii) Division.--The collective annual
contribution obligation required under clause
(ii) shall be divided among the persons subject
to the obligation, and applied uniformly, based
on the hours worked for which contributions
referred to in clause (i) would be owed.
``(C) Phase-in of transfers.--For each of calendar
years 2008 through 2010, the transfers required under
subparagraphs (B) and (C) of paragraph (2) shall equal
the following amounts:
``(i) For calendar year 2008, the Secretary
shall make transfers equal to 25 percent of the
amounts that would otherwise be required under
subparagraphs (B) and (C) of paragraph (2).
``(ii) For calendar year 2009, the
Secretary shall make transfers equal to 50
percent of the amounts that would otherwise be
required under subparagraphs (B) and (C) of
paragraph (2).
``(iii) For calendar year 2010, the
Secretary shall make transfers equal to 75
percent of the amounts that would otherwise be
required under subparagraphs (B) and (C) of
paragraph (2).
``(i) Funding.--
``(1) In general.--Subject to paragraph (3), out of any
funds in the Treasury not otherwise appropriated, the Secretary
of the Treasury shall transfer to the plans described in
subsection (h)(2) such sums as are necessary to pay the
following amounts:
``(A) To the Combined Fund (as defined in section
9701(a)(5) of the Internal Revenue Code of 1986 and
referred to in this paragraph as the `Combined Fund'),
the amount that the trustees of the Combined Fund
estimate will be expended from premium accounts
maintained by the Combined Fund for the fiscal year to
provide benefits for beneficiaries who are unassigned
beneficiaries solely as a result of the application of
section 9706(h)(1) of the Internal Revenue Code of
1986, subject to the following limitations:
``(i) For fiscal year 2008, the amount paid
under this subparagraph shall equal--
``(I) the amount described in
subparagraph (A); minus
``(II) the amounts required under
section 9706(h)(3)(A) of the Internal
Revenue Code of 1986.
``(ii) For fiscal year 2009, the amount
paid under this subparagraph shall equal--
``(I) the amount described in
subparagraph (A); minus
``(II) the amounts required under
section 9706(h)(3)(B) of the Internal
Revenue Code of 1986.
``(iii) For fiscal year 2010, the amount
paid under this subparagraph shall equal--
``(I) the amount described in
subparagraph (A); minus
``(II) the amounts required under
section 9706(h)(3)(C) of the Internal
Revenue Code of 1986.
``(B) On certification by the trustees of any plan
described in subsection (h)(2) that the amount
available for transfer by the Secretary pursuant to
this section (determined after application of any
limitation under subsection (h)(5)) is less than the
amount required to be transferred, to the plan the
amount necessary to meet the requirement of subsection
(h)(2).
``(C) To the Combined Fund, $9,000,000 on October
1, 2007, $9,000,000 on October 1, 2008, and $9,000,000
on October 1, 2009 (which amounts shall not be
exceeded) to provide a refund of any premium (as
described in section 9704(a) of the Internal Revenue
Code of 1986) paid on or before September 7, 2000, to
the Combined Fund, plus interest on the premium
calculated at the rate of 7.5 percent per year, on a
proportional basis and to be paid not later than 60
days after the date on which each payment is received
by the Combined Fund, to those signatory operators (to
the extent that the Combined Fund has not previously
returned the premium amounts to the operators), or any
related persons to the operators (as defined in section
9701(c) of the Internal Revenue Code of 1986), or their
heirs, successors, or assigns who have been denied the
refunds as the result of final judgments or settlements
if--
``(i) prior to the date of enactment of
this paragraph, the signatory operator (or any
related person to the operator)--
``(I) had all of its beneficiary
assignments made under section 9706 of
the Internal Revenue Code of 1986
voided by the Commissioner of the
Social Security Administration; and
``(II) was subject to a final
judgment or final settlement of
litigation adverse to a claim by the
operator that the assignment of
beneficiaries under section 9706 of the
Internal Revenue Code of 1986 was
unconstitutional as applied to the
operator; and
``(ii) on or before September 7, 2000, the
signatory operator (or any related person to
the operator) had paid to the Combined Fund any
premium amount that had not been refunded.
``(2) Payments to states and indian tribes.--Subject to
paragraph (3), out of any funds in the Treasury not otherwise
appropriated, the Secretary of the Treasury shall transfer to
the Secretary of the Interior for distribution to States and
Indian tribes such sums as are necessary to pay amounts
described in paragraphs (1)(A) and (2)(A) of section 411(h).
``(3) Limitations.--
``(A) Cap.--The total amount transferred under this
subsection for any fiscal year shall not exceed
$490,000,000.
``(B) Insufficient amounts.--In a case in which the
amount required to be transferred without regard to
this paragraph exceeds the maximum annual limitation in
subparagraph (A), the Secretary shall adjust the
transfers of funds so that--
``(i) each transfer for the fiscal year is
a percentage of the amount described;
``(ii) the amount is determined without
regard to subsection (h)(5)(A); and
``(iii) the percentage transferred is the
same for all transfers made under this
subsection for the fiscal year.
``(4) Availability of funds.--Funds shall be transferred
under paragraph (1) and (2) beginning in fiscal year 2008 and
each fiscal year thereafter, and shall remain available until
expended.''.
SEC. 313. OBJECTIVES OF FUND.
Section 403 of the Surface Mining Control and Reclamation Act of
1977 (30 U.S.C. 1233) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by striking ``(1) the protection'' and
inserting the following:
``(1)(A) the protection;'';
(ii) in subparagraph (A) (as designated by
clause (i)), by striking ``general welfare,'';
and
(iii) by adding at the end the following:
``(B) the restoration of land and water resources and the
environment that--
``(i) have been degraded by the adverse effects of
coal mining practices; and
``(ii) are adjacent to a site that has been or will
be remediated under subparagraph (A);'';
(B) in paragraph (2)--
(i) by striking ``(2) the protection'' and
inserting the following:
``(2)(A) the protection'';
(ii) in subparagraph (A) (as designated by
clause (i), by striking ``health, safety, and
general welfare'' and inserting ``health and
safety''; and
(iii) by adding at the end the following:
``(B) the restoration of land and water resources and the
environment that--
``(i) have been degraded by the adverse effects of
coal mining practices; and
``(ii) are adjacent to a site that has been or will
be remediated under subparagraph (A); and'';
(C) in paragraph (3), by striking the semicolon at
the end and inserting a period; and
(D) by striking paragraphs (4) and (5);
(2) in subsection (b)--
(A) by striking the subsection heading and
inserting ``Water Supply Restoration.--''; and
(B) in paragraph (1), by striking ``up to 30
percent of the''; and
(3) in the second sentence of subsection (c), by inserting
``, subject to the approval of the Secretary,'' after
``amendments''.
SEC. 314. RECLAMATION OF RURAL LAND.
(a) Administration.--Section 406(h) of the Surface Mining Control
and Reclamation Act of 1977 (30 U.S.C. 1236(h)) is amended by striking
``Soil Conservation Service'' and inserting ``Natural Resources
Conservation Service''.
(b) Authorization of Appropriations for Carrying Out Rural Land
Reclamation.--Section 406 of the Surface Mining Control and Reclamation
Act of 1977 (30 U.S.C. 1236) is amended by adding at the end the
following:
``(i) There are authorized to be appropriated to the Secretary of
Agriculture, from amounts in the Treasury other than amounts in the
fund, such sums as may be necessary to carry out this section.''.
SEC. 315. LIENS.
Section 408(a) of the Surface Mining Control and Reclamation Act of
1977 (30 U.S.C. 1238) is amended in the last sentence by striking ``who
owned the surface prior to May 2, 1977, and''.
SEC. 316. CERTIFICATION.
Section 411 of the Surface Mining Control and Reclamation Act of
1977 (30 U.S.C. 1240a) is amended--
(1) in subsection (a)--
(A) by inserting ``(1)'' before the first sentence;
and
(B) by adding at the end the following:
``(2)(A) The Secretary may, on the initiative of the Secretary,
make the certification referred to in paragraph (1) on behalf of any
State or Indian tribe referred to in paragraph (1) if on the basis of
the inventory referred to in section 403(c) all reclamation projects
relating to the priorities described in section 403(a) for eligible
land and water pursuant to section 404 in the State or tribe have been
completed.
``(B) The Secretary shall only make the certification after notice
in the Federal Register and opportunity for public comment.''; and
(2) by adding at the end the following:
``(h) Payments to States and Indian Tribes.--
``(1) In general.--
``(A) Payments.--
``(i) In general.--Notwithstanding section
401(f)(3)(B), from funds referred to in section
402(i)(2), the Secretary shall make payments to
States or Indian tribes for the amount due for
the aggregate unappropriated amount allocated
to the State or Indian tribe under subparagraph
(A) or (B) of section 402(g)(1).
``(ii) Conversion as equivalent payments.--
Amounts allocated under subparagraphs (A) or
(B) of section 402(g)(1) shall be reallocated
to the allocation established in section
402(g)(5) in amounts equivalent to payments
made to States or Indian tribes under this
paragraph.
``(B) Amount due.--In this paragraph, the term
`amount due' means the unappropriated amount allocated
to a State or Indian tribe before October 1, 2007,
under subparagraph (A) or (B) of section 402(g)(1).
``(C) Schedule.--Payments under subparagraph (A)
shall be made in 7 equal annual installments, beginning
with fiscal year 2008.
``(D) Use of funds.--
``(i) Certified states and indian tribes.--
A State or Indian tribe that makes a
certification under subsection (a) in which the
Secretary concurs shall use any amounts
provided under this paragraph for the purposes
established by the State legislature or tribal
council of the Indian tribe, with priority
given for addressing the impacts of mineral
development.
``(ii) Uncertified states and indian
tribes.--A State or Indian tribe that has not
made a certification under subsection (a) in
which the Secretary has concurred shall use any
amounts provided under this paragraph for the
purposes described in section 403.
``(2) Subsequent state and indian tribe share for certified
states and indian tribes.--
``(A) In general.--Notwithstanding section
401(f)(3)(B), from funds referred to in section
402(i)(2), the Secretary shall pay to each certified
State or Indian tribe an amount equal to the sum of the
aggregate unappropriated amount allocated on or after
October 1, 2007, to the certified State or Indian tribe
under subparagraph (A) or (B) of section 402(g)(1).
``(B) Certified state or indian tribe defined.--In
this paragraph the term `certified State or Indian
tribe' means a State or Indian tribe for which a
certification is made under subsection (a) in which the
Secretary concurs.
``(3) Manner of payment.--
``(A) In general.--Subject to subparagraph (B),
payments to States or Indian tribes under this
subsection shall be made without regard to any
limitation in section 401(d) and concurrently with
payments to States under that section.
``(B) Initial payments.--The first 3 payments made
to any State or Indian tribe shall be reduced to 25
percent, 50 percent, and 75 percent, respectively, of
the amounts otherwise required under paragraph (2)(A).
``(C) Installments.--Amounts withheld from the
first 3 annual installments as provided under
subparagraph (B) shall be paid in 2 equal annual
installments beginning with fiscal year 2018.
``(4) Reallocation.--
``(A) In general.--The amount allocated to any
State or Indian tribe under subparagraph (A) or (B) of
section 402(g)(1) that is paid to the State or Indian
tribe as a result of a payment under paragraph (1) or
(2) shall be reallocated and available for grants under
section 402(g)(5).
``(B) Allocation.--The grants shall be allocated
based on the amount of coal historically produced
before August 3, 1977, in the same manner as under
section 402(g)(5).''.
SEC. 317. REMINING INCENTIVES.
Title IV of the Surface Mining Control and Reclamation Act of 1977
(30 U.S.C. 1231 et seq.) is amended by adding at the following:
``SEC. 415. REMINING INCENTIVES.
``(a) In General.--Notwithstanding any other provision of this Act,
the Secretary may, after opportunity for public comment, promulgate
regulations that describe conditions under which amounts in the fund
may be used to provide incentives to promote remining of eligible land
under section 404 in a manner that leverages the use of amounts from
the fund to achieve more reclamation with respect to the eligible land
than would be achieved without the incentives.
``(b) Requirements.--Any regulations promulgated under subsection
(a) shall specify that the incentives shall apply only if the Secretary
determines, with the concurrence of the State regulatory authority
referred to in title V, that, without the incentives, the eligible land
would not be likely to be remined and reclaimed.
``(c) Incentives.--
``(1) In general.--Incentives that may be considered for
inclusion in the regulations promulgated under subsection (a)
include, but are not limited to--
``(A) a rebate or waiver of the reclamation fees
required under section 402(a); and
``(B) the use of amounts in the fund to provide
financial assurance for remining operations in lieu of
all or a portion of the performance bonds required
under section 509.
``(2) Limitations.--
``(A) Use.--A rebate or waiver under paragraph
(1)(A) shall be used only for operations that--
``(i) remove or reprocess abandoned coal
mine waste; or
``(ii) conduct remining activities that
meet the priorities specified in paragraph (1)
or (2) of section 403(a).
``(B) Amount.--The amount of a rebate or waiver
provided as an incentive under paragraph (1)(A) to
remine or reclaim eligible land shall not exceed the
estimated cost of reclaiming the eligible land under
this section.''.
SEC. 318. EXTENSION OF LIMITATION ON APPLICATION OF PROHIBITION ON
ISSUANCE OF PERMIT.
Section 510(e) of the Surface Mining Control and Reclamation Act of
1977 (30 U.S.C. 1260(e)) is amended by striking the last sentence.
SEC. 319. TRIBAL REGULATION OF SURFACE COAL MINING AND RECLAMATION
OPERATIONS.
(a) In General.--Section 710 of the Surface Mining Control and
Reclamation Act of 1977 (30 U.S.C. 1300) is amended by adding at the
end the following:
``(j) Tribal Regulatory Authority.--
``(1) Tribal regulatory programs.--
``(A) In general.--Notwithstanding any other
provision of law, an Indian tribe may apply for, and
obtain the approval of, a tribal program under section
503 regulating in whole or in part surface coal mining
and reclamation operations on reservation land under
the jurisdiction of the Indian tribe using the
procedures of section 504(e).
``(B) References to state.--For purposes of this
subsection and the implementation and administration of
a tribal program under title V, any reference to a
`State' in this Act shall be considered to be a
reference to a `tribe'.
``(2) Conflicts of interest.--
``(A) In general.--The fact that an individual is a
member of an Indian tribe does not in itself constitute
a violation of section 201(f).
``(B) Employees of tribal regulatory authority.--
Any employee of a tribal regulatory authority shall not
be eligible for a per capita distribution of any
proceeds from coal mining operations conducted on
Indian reservation lands under this Act.
``(3) Sovereign immunity.--To receive primary regulatory
authority under section 504(e), an Indian tribe shall waive
sovereign immunity for purposes of section 520 and paragraph
(4).
``(4) Judicial review.--
``(A) Civil actions.--
``(i) In general.--After exhausting all
tribal remedies with respect to a civil action
arising under a tribal program approved under
section 504(e), an interested party may file a
petition for judicial review of the civil
action in the United States circuit court for
the circuit in which the surface coal mining
operation named in the petition is located.
``(ii) Scope of review.--
``(I) Questions of law.--The United
States circuit court shall review de
novo any questions of law under clause
(i).
``(II) Findings of fact.--The
United States circuit court shall
review findings of fact under clause
(i) using a clearly erroneous standard.
``(B) Criminal actions.--Any criminal action
brought under section 518 with respect to surface coal
mining or reclamation operations on Indian reservation
lands shall be brought in--
``(i) the United States District Court for
the District of Columbia; or
``(ii) the United States district court in
which the criminal activity is alleged to have
occurred.
``(5) Grants.--
``(A) In general.--Except as provided in
subparagraph (B), grants for developing, administering,
and enforcing tribal programs approved in accordance
with section 504(e) shall be provided to an Indian
tribe in accordance with section 705.
``(B) Exception.--Notwithstanding subparagraph (A),
the Federal share of the costs of developing,
administering, and enforcing an approved tribal program
shall be 100 percent.
``(6) Report.--Not later than 18 months after the date on
which a tribal program is approved under subsection (e) of
section 504, the Secretary shall submit to the appropriate
committees of Congress a report, developed in cooperation with
the applicable Indian tribe, on the tribal program that
includes a recommendation of the Secretary on whether primary
regulatory authority under that subsection should be expanded
to include additional Indian lands.''.
(b) Conforming Amendment.--Section 710(i) of the Surface Mining
Control and Reclamation Act of 1977 (30 U.S.C. 1300(i)) is amended in
the first sentence by striking ``, except'' and all that follows
through ``section 503''.
Subtitle B--Coal Industry Retiree Health Benefit Act
SEC. 321. CERTAIN RELATED PERSONS AND SUCCESSORS IN INTEREST RELIEVED
OF LIABILITY IF PREMIUMS PREPAID.
(a) Combined Benefit Fund.--
(1) In general.--Section 9704 of the Internal Revenue Code
of 1986 (relating to liability of assigned operators) is
amended by adding at the end the following new subsection:
``(j) Prepayment of Premium Liability.--
``(1) In general.--If--
``(A) a payment meeting the requirements of
paragraph (3) is made to the Combined Fund by or on
behalf of--
``(i) any assigned operator to which this
subsection applies, or
``(ii) any related person to any assigned
operator described in clause (i), and
``(B) the common parent of the controlled group of
corporations described in paragraph (2)(B) is jointly
and severally liable for any premium under this section
which (but for this subsection) would be required to be
paid by the assigned operator or related person,
then such common parent (and no other person) shall be liable
for such premium.
``(2) Assigned operators to which subsection applies.--
``(A) In general.--This subsection shall apply to
any assigned operator if--
``(i) the assigned operator (or a related
person to the assigned operator)--
``(I) made contributions to the
1950 UMWA Benefit Plan and the 1974
UMWA Benefit Plan for employment during
the period covered by the 1988
agreement; and
``(II) is not a 1988 agreement
operator,
``(ii) the assigned operator (and all
related persons to the assigned operator) are
not actively engaged in the production of coal
as of July 1, 2005, and
``(iii) the assigned operator was, as of
July 20, 1992, a member of a controlled group
of corporations described in subparagraph (B).
``(B) Controlled group of corporations.--A
controlled group of corporations is described in this
subparagraph if the common parent of such group is a
corporation the shares of which are publicly traded on
a United States exchange.
``(C) Coordination with repeal of assignments.--A
person shall not fail to be treated as an assigned
operator to which this subsection applies solely
because the person ceases to be an assigned operator by
reason of section 9706(h)(1) if the person otherwise
meets the requirements of this subsection and is liable
for the payment of premiums under section 9706(h)(3).
``(D) Controlled group.--For purposes of this
subsection, the term `controlled group of corporations'
has the meaning given such term by section 52(a).
``(3) Requirements.--A payment meets the requirements of
this paragraph if--
``(A) the amount of the payment is not less than
the present value of the total premium liability under
this chapter with respect to the Combined Fund of the
assigned operators or related persons described in
paragraph (1) or their assignees, as determined by the
operator's or related person's enrolled actuary (as
defined in section 7701(a)(35)) using actuarial methods
and assumptions each of which is reasonable and which
are reasonable in the aggregate, as determined by such
enrolled actuary;
``(B) such enrolled actuary files with the
Secretary of Labor a signed actuarial report
containing--
``(i) the date of the actuarial valuation
applicable to the report; and
``(ii) a statement by the enrolled actuary
signing the report that, to the best of the
actuary's knowledge, the report is complete and
accurate and that in the actuary's opinion the
actuarial assumptions used are in the aggregate
reasonably related to the experience of the
operator and to reasonable expectations; and
``(C) 90 calendar days have elapsed after the
report required by subparagraph (B) is filed with the
Secretary of Labor, and the Secretary of Labor has not
notified the assigned operator in writing that the
requirements of this paragraph have not been satisfied.
``(4) Use of prepayment.--The Combined Fund shall--
``(A) establish and maintain an account for each
assigned operator or related person by, or on whose
behalf, a payment described in paragraph (3) was made,
``(B) credit such account with such payment (and
any earnings thereon), and
``(C) use all amounts in such account exclusively
to pay premiums that would (but for this subsection) be
required to be paid by the assigned operator.
Upon termination of the obligations for the premium liability
of any assigned operator or related person for which such
account is maintained, all funds remaining in such account (and
earnings thereon) shall be refunded to such person as may be
designated by the common parent described in paragraph
(1)(B).''.
(b) Individual Employer Plans.--Section 9711(c) of the Internal
Revenue Code of 1986 (relating to joint and several liability) is
amended to read as follows:
``(c) Joint and Several Liability of Related Persons.--
``(1) In general.--Except as provided in paragraph (2),
each related person of a last signatory operator to which
subsection (a) or (b) applies shall be jointly and severally
liable with the last signatory operator for the provision of
health care coverage described in subsection (a) or (b).
``(2) Liability limited if security provided.--If--
``(A) security meeting the requirements of
paragraph (3) is provided by or on behalf of--
``(i) any last signatory operator which is
an assigned operator described in section
9704(j)(2), or
``(ii) any related person to any last
signatory operator described in clause (i), and
``(B) the common parent of the controlled group of
corporations described in section 9704(j)(2)(B) is
jointly and severally liable for the provision of
health care under this section which, but for this
paragraph, would be required to be provided by the last
signatory operator or related person,
then, as of the date the security is provided, such common
parent (and no other person) shall be liable for the provision
of health care under this section which the last signatory
operator or related person would otherwise be required to
provide. Security may be provided under this paragraph without
regard to whether a payment was made under section 9704(j).
``(3) Security.--Security meets the requirements of this
paragraph if--
``(A) the security--
``(i) is in the form of a bond, letter of
credit, or cash escrow,
``(ii) is provided to the trustees of the
1992 UMWA Benefit Plan solely for the purpose
of paying premiums for beneficiaries who would
be described in section 9712(b)(2)(B) if the
requirements of this section were not met by
the last signatory operator, and
``(iii) is in an amount equal to 1 year of
liability of the last signatory operator under
this section, determined by using the average
cost of such operator's liability during the
prior 3 calendar years;
``(B) the security is in addition to any other
security required under any other provision of this
title; and
``(C) the security remains in place for 5 years.
``(4) Refunds of security.--The remaining amount of any
security provided under this subsection (and earnings thereon)
shall be refunded to the last signatory operator as of the
earlier of--
``(A) the termination of the obligations of the
last signatory operator under this section, or
``(B) the end of the 5-year period described in
paragraph (4)(C).''.
(c) 1992 UMWA Benefit Plan.--Section 9712(d)(4) of the Internal
Revenue Code of 1986 (relating to joint and several liability) is
amended by adding at the end the following new sentence: ``The
provisions of section 9711(c)(2) shall apply to any last signatory
operator described in such section (without regard to whether security
is provided under such section, a payment is made under section
9704(j), or both) and if security meeting the requirements of section
9711(c)(3) is provided, the common parent described in section
9711(c)(2)(B) shall be exclusively responsible for any liability for
premiums under this section which, but for this sentence, would be
required to be paid by the last signatory operator or any related
person.''.
(d) Successor in Interest.--Section 9701(c) of the Internal Revenue
Code of 1986 (relating to terms relating to operators) is amended by
adding at the end the following new paragraph:
``(8) Successor in interest.--
``(A) Safe harbor.--The term `successor in
interest' shall not include any person who--
``(i) is an unrelated person to an eligible
seller described in subparagraph (C); and
``(ii) purchases for fair market value
assets, or all of the stock, of a related
person to such seller, in a bona fide, arm's-
length sale.
``(B) Unrelated person.--The term `unrelated
person' means a purchaser who does not bear a
relationship to the eligible seller described in
section 267(b).
``(C) Eligible seller.--For purposes of this
paragraph, the term `eligible seller' means an assigned
operator described in section 9704(j)(2) or a related
person to such assigned operator.''.
(e) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act, except that the
amendment made by subsection (d) shall apply to transactions after the
date of the enactment of this Act.
SEC. 322. TRANSFERS TO FUNDS; PREMIUM RELIEF.
(a) Combined Fund.--
(1) Federal transfers.--Section 9705(b) of the Internal
Revenue Code of 1986 (relating to transfers from Abandoned Mine
Reclamation Fund) is amended--
(A) in paragraph (1), by striking ``section
402(h)'' and inserting ``subsections (h) and (i) of
section 402'';
(B) by striking paragraph (2) and inserting the
following new paragraph:
``(2) Use of funds.--Any amount transferred under paragraph
(1) for any fiscal year shall be used to pay benefits and
administrative costs of beneficiaries of the Combined Fund or
for such other purposes as are specifically provided in the
Acts described in paragraph (1).''; and
(C) by striking ``From Abandoned Mine Reclamation
Fund''.
(2) Modifications of premiums to reflect federal
transfers.--
(A) Elimination of unassigned beneficiaries
premium.--Section 9704(d) of such Code (establishing
unassigned beneficiaries premium) is amended to read as
follows:
``(d) Unassigned Beneficiaries Premium.--
``(1) Plan years ending on or before september 30, 2006.--
For plan years ending on or before September 30, 2006, the
unassigned beneficiaries premium for any assigned operator
shall be equal to the applicable percentage of the product of
the per beneficiary premium for the plan year multiplied by the
number of eligible beneficiaries who are not assigned under
section 9706 to any person for such plan year.
``(2) Plan years beginning on or after october 1, 2006.--
``(A) In general.--For plan years beginning on or
after October 1, 2006, subject to subparagraph (B),
there shall be no unassigned beneficiaries premium, and
benefit costs with respect to eligible beneficiaries
who are not assigned under section 9706 to any person
for any such plan year shall be paid from amounts
transferred under section 9705(b).
``(B) Inadequate transfers.--If, for any plan year
beginning on or after October 1, 2006, the amounts
transferred under section 9705(b) are less than the
amounts required to be transferred to the Combined Fund
under subsection (h)(2)(A) or (i) of section 402 of the
Surface Mining Control and Reclamation Act of 1977 (30
U.S.C. 1232)), then the unassigned beneficiaries
premium for any assigned operator shall be equal to the
operator's applicable percentage of the amount required
to be so transferred which was not so transferred.''.
(B) Premium accounts.--
(i) Crediting of accounts.--Section
9704(e)(1) of such Code (relating to premium
accounts; adjustments) is amended by inserting
``and amounts transferred under section
9705(b)'' after ``premiums received''.
(ii) Surpluses attributable to public
funding.--Section 9704(e)(3)(A) of such Code is
amended by adding at the end the following new
sentence: ``Amounts credited to an account from
amounts transferred under section 9705(b) shall
not be taken into account in determining
whether there is a surplus in the account for
purposes of this paragraph.''
(C) Applicable percentage.--Section 9704(f)(2) of
such Code (relating to annual adjustments) is amended
by adding at the end the following new subparagraph:
``(C) In the case of plan years beginning on or
after October 1, 2007, the total number of assigned
eligible beneficiaries shall be reduced by the eligible
beneficiaries whose assignments have been revoked under
section 9706(h).''.
(3) Assignments and reassignment.--Section 9706 of the
Internal Revenue Code of 1986 (relating to assignment of
eligible beneficiaries) is amended by adding at the end the
following:
``(h) Assignments as of October 1, 2007.--
``(1) In general.--Subject to the premium obligation set
forth in paragraph (3), the Commissioner of Social Security
shall--
``(A) revoke all assignments to persons other than
1988 agreement operators for purposes of assessing
premiums for plan years beginning on and after October
1, 2007; and
``(B) make no further assignments to persons other
than 1988 agreement operators, except that no
individual who becomes an unassigned beneficiary by
reason of subparagraph (A) may be assigned to a 1988
agreement operator.
``(2) Reassignment upon purchase.--This subsection shall
not be construed to prohibit the reassignment under subsection
(b)(2) of an eligible beneficiary.
``(3) Liability of persons during three fiscal years
beginning on and after october 1, 2007.--In the case of each of
the fiscal years beginning on October 1, 2007, 2008, and 2009,
each person other than a 1988 agreement operator shall pay to
the Combined Fund the following percentage of the amount of
annual premiums that such person would otherwise be required to
pay under section 9704(a), determined on the basis of
assignments in effect without regard to the revocation of
assignments under paragraph (1)(A):
``(A) For the fiscal year beginning on October 1,
2007, 55 percent.
``(B) For the fiscal year beginning on October 1,
2008, 40 percent.
``(C) For the fiscal year beginning on October 1,
2009, 15 percent.''.
(4) Effective date.--The amendments made by this subsection
shall apply to plan years of the Combined Fund beginning after
September 30, 2006.
(b) 1992 UMWA Benefit and Other Plans.--
(1) Transfers to plans.--Section 9712(a) of the Internal
Revenue Code of 1986 (relating to the establishment and
coverage of the 1992 UMWA Benefit Plan) is amended by adding at
the end the following:
``(3) Transfers under other federal statutes.--
``(A) In general.--The 1992 UMWA Benefit Plan shall
include any amount transferred to the plan under
subsections (h) and (i) of section 402 of the Surface
Mining Control and Reclamation Act of 1977 (30 U.S.C.
1232).
``(B) Use of funds.--Any amount transferred under
subparagraph (A) for any fiscal year shall be used to
provide the health benefits described in subsection (c)
with respect to any beneficiary for whom no monthly per
beneficiary premium is paid pursuant to paragraph
(1)(A) or (3) of subsection (d).
``(4) Special rule for 1993 plan.--
``(A) In general.--The plan described in section
402(h)(2)(C) of the Surface Mining Control and
Reclamation Act of 1977 (30 U.S.C. 1232(h)(2)(C)) shall
include any amount transferred to the plan under
subsections (h) and (i) of the Surface Mining Control
and Reclamation Act of 1977 (30 U.S.C. 1232).
``(B) Use of funds.--Any amount transferred under
subparagraph (A) for any fiscal year shall be used to
provide the health benefits described in section
402(h)(2)(C)(i) of the Surface Mining Control and
Reclamation Act of 1977 (30 U.S.C. 1232(h)(2)(C)(i)) to
individuals described in section 402(h)(2)(C) of such
Act (30 U.S.C. 1232(h)(2)(C)).''.
(2) Premium adjustments.--
(A) In general.--Section 9712(d)(1) of such Code
(relating to guarantee of benefits) is amended to read
as follows:
``(1) In general.--All 1988 last signatory operators shall
be responsible for financing the benefits described in
subsection (c) by meeting the following requirements in
accordance with the contribution requirements established in
the 1992 UMWA Benefit Plan:
``(A) The payment of a monthly per beneficiary
premium by each 1988 last signatory operator for each
eligible beneficiary of such operator who is described
in subsection (b)(2) and who is receiving benefits
under the 1992 UMWA benefit plan.
``(B) The provision of a security (in the form of a
bond, letter of credit, or cash escrow) in an amount
equal to a portion of the projected future cost to the
1992 UMWA Benefit Plan of providing health benefits for
eligible and potentially eligible beneficiaries
attributable to the 1988 last signatory operator.
``(C) If the amounts transferred under subsection
(a)(3) are less than the amounts required to be
transferred to the 1992 UMWA Benefit Plan under
subsections (h) and (i) of section 402 of the Surface
Mining Control and Reclamation Act of 1977 (30 U.S.C.
1232), the payment of an additional backstop premium by
each 1988 last signatory operator which is equal to
such operator's share of the amounts required to be so
transferred but which were not so transferred,
determined on the basis of the number of eligible and
potentially eligible beneficiaries attributable to the
operator.''.
(B) Conforming amendments.--Section 9712(d) of such
Code is amended--
(i) in paragraph (2)(B), by striking
``prefunding'' and inserting ``backstop'', and
(ii) in paragraph (3), by striking
``paragraph (1)(B)'' and inserting ``paragraph
(1) (A)''.
(C) Effective date.--The amendments made by this
paragraph shall apply to fiscal years beginning on or
after October 1, 2010.
SEC. 323. OTHER PROVISIONS.
(a) Board of Trustees.--Section 9702(b) of the Internal Revenue
Code of 1986 (relating to board of trustees of the Combined Fund) is
amended to read as follows:
``(b) Board of Trustees.--
``(1) In general.--For purposes of subsection (a), the
board of trustees for the Combined Fund shall be appointed as
follows:
``(A) 2 individuals who represent employers in the
coal mining industry shall be designated by the BCOA;
``(B) 2 individuals designated by the United Mine
Workers of America; and
``(C) 3 individuals selected by the individuals
appointed under subparagraphs (A) and (B).
``(2) Successor trustees.--Any successor trustee shall be
appointed in the same manner as the trustee being succeeded.
The plan establishing the Combined Fund shall provide for the
removal of trustees.
``(3) Special rule.--If the BCOA ceases to exist, any
trustee or successor under paragraph (1)(A) shall be designated
by the 3 employers who were members of the BCOA on the
enactment date and who have been assigned the greatest number
of eligible beneficiaries under section 9706.''.
(b) Enforcement of Obligations.--
(1) Failure to pay premiums.--Section 9707(a) of the
Internal Revenue Code of 1986 is amended to read as follows:
``(a) Failures to Pay.--
``(1) Premiums for eligible beneficiaries.--There is hereby
imposed a penalty on the failure of any assigned operator to
pay any premium required to be paid under section 9704 with
respect to any eligible beneficiary.
``(2) Contributions required under the mining laws.--There
is hereby imposed a penalty on the failure of any person to
make a contribution required under section 402(h)(5)(B)(ii) of
the Surface Mining Control and Reclamation Act of 1977 to a
plan referred to in section 402(h)(2)(C) of such Act. For
purposes of applying this section, each such required monthly
contribution for the hours worked of any individual shall be
treated as if it were a premium required to be paid under
section 9704 with respect to an eligible beneficiary.''.
(2) Civil enforcement.--Section 9721 of such Code is
amended to read as follows:
``SEC. 9721. CIVIL ENFORCEMENT.
``The provisions of section 4301 of the Employee Retirement Income
Security Act of 1974 shall apply, in the same manner as any claim
arising out of an obligation to pay withdrawal liability under subtitle
E of title IV of such Act, to any claim--
``(1) arising out of an obligation to pay any amount
required to be paid by this chapter; or
``(2) arising out of an obligation to pay any amount
required by section 402(h)(5)(B)(ii) of the Surface Mining
Control and Reclamation Act of 1977 (30 U.S.C.
1232(h)(5)(B)(ii)).''.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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