H.R. 2847 — Hiring Incentives to Restore Employment Act

[111th Congress Public Law 147]
[From the U.S. Government Publishing Office]



[[Page 124 STAT. 71]]

Public Law 111-147
111th Congress

                                 An Act


 
 Making appropriations for the Departments of Commerce and Justice, and 
 Science, and Related Agencies for the fiscal year ending September 30, 
  2010, and for other purposes. <<NOTE: Mar. 18, 2010 -  [H.R. 2847]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Hiring 
Incentives to Restore Employment Act.>> 
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF CONTENTS.

    (a) Short <<NOTE: 26 USC 1 note.>> Title.--This Act may be cited as 
the ``Hiring Incentives to Restore Employment Act''.

    (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; amendment of 1986 Code; table of contents.

     TITLE I--INCENTIVES FOR HIRING AND RETAINING UNEMPLOYED WORKERS

Sec. 101. Payroll tax forgiveness for hiring unemployed workers.
Sec. 102. Business credit for retention of certain newly hired 
           individuals in 2010.

                           TITLE II--EXPENSING

Sec. 201. Increase in expensing of certain depreciable business assets.

                  TITLE III--QUALIFIED TAX CREDIT BONDS

Sec. 301. Issuer allowed refundable credit for certain qualified tax 
           credit bonds.

     TITLE IV--EXTENSION OF CURRENT SURFACE TRANSPORTATION PROGRAMS

Sec. 401. Short title.

                    Subtitle A--Federal-aid Highways

Sec. 411. In general.
Sec. 412. Administrative expenses.
Sec. 413. Rescission of unobligated balances.
Sec. 414. Reconciliation of funds.

  Subtitle B--National Highway Traffic Safety Administration, Federal 
      Motor Carrier Safety Administration, and Additional Programs

Sec. 421. Extension of National Highway Traffic Safety Administration 
           Highway Safety Programs.
Sec. 422. Extension of Federal Motor Carrier Safety Administration 
           Programs.
Sec. 423. Additional programs.

               Subtitle C--Public Transportation Programs

Sec. 431. Allocation of funds for planning programs.

[[Page 124 STAT. 72]]

Sec. 432. Special rule for urbanized area formula grants.
Sec. 433. Allocating amounts for capital investment grants.
Sec. 434. Apportionment of formula grants for other than urbanized 
           areas.
Sec. 435. Apportionment based on fixed guideway factors.
Sec. 436. Authorizations for public transportation.
Sec. 437. Amendments to SAFETEA-LU.

                     Subtitle D--Revenue Provisions

Sec. 441. Repeal of provision prohibiting the crediting of interest to 
           the Highway Trust Fund.
Sec. 442. Restoration of certain foregone interest to Highway Trust 
           Fund.
Sec. 443. Treatment of certain amounts appropriated to Highway Trust 
           Fund.
Sec. 444. Termination of transfers from highway trust fund for certain 
           repayments and credits.
Sec. 445. Extension of authority for expenditures.
Sec. 446. Level of obligation limitations.

             Subtitle E--Disadvantaged Business Enterprises

Sec. 451. Disadvantaged business enterprises.

                       TITLE V--OFFSET PROVISIONS

               Subtitle A--Foreign Account Tax Compliance

            Part I--Increased Disclosure of Beneficial Owners

Sec. 501. Reporting on certain foreign accounts.
Sec. 502. Repeal of certain foreign exceptions to registered bond 
           requirements.

         Part II--Under Reporting With Respect to Foreign Assets

Sec. 511. Disclosure of information with respect to foreign financial 
           assets.
Sec. 512. Penalties for underpayments attributable to undisclosed 
           foreign financial assets.
Sec. 513. Modification of statute of limitations for significant 
           omission of income in connection with foreign assets.

                  Part III--Other Disclosure Provisions

Sec. 521. Reporting of activities with respect to passive foreign 
           investment companies.
Sec. 522. Secretary permitted to require financial institutions to file 
           certain returns related to withholding on foreign transfers 
           electronically.

              Part IV--Provisions Related to Foreign Trusts

Sec. 531. Clarifications with respect to foreign trusts which are 
           treated as having a United States beneficiary.
Sec. 532. Presumption that foreign trust has United States beneficiary.
Sec. 533. Uncompensated use of trust property.
Sec. 534. Reporting requirement of United States owners of foreign 
           trusts.
Sec. 535. Minimum penalty with respect to failure to report on certain 
           foreign trusts.

 Part V--Substitute Dividends and Dividend Equivalent Payments Received 
                 by Foreign Persons Treated as Dividends

Sec. 541. Substitute dividends and dividend equivalent payments received 
           by foreign persons treated as dividends.

  Subtitle B--Delay in Application of Worldwide Allocation of Interest

Sec. 551. Delay in application of worldwide allocation of interest.

                    Subtitle C--Budgetary Provisions

Sec. 561. Time for payment of corporate estimated taxes.
Sec. 562. PAYGO Compliance.

     TITLE I--INCENTIVES FOR HIRING AND RETAINING UNEMPLOYED WORKERS

SEC. 101. PAYROLL TAX FORGIVENESS FOR HIRING UNEMPLOYED WORKERS.

    (a) In General.--Section 3111 is <<NOTE: 26 USC 3111.>> amended by 
adding at the end the following new subsection:

[[Page 124 STAT. 73]]

    ``(d) Special Exemption for Certain Individuals Hired in 2010.--
            ``(1) In general.--Subsection <<NOTE: Time period.>> (a) 
        shall not apply to wages paid by a qualified employer with 
        respect to employment during the period beginning on the day 
        after the date of the enactment of this subsection and ending on 
        December 31, 2010, of any qualified individual for services 
        performed--
                    ``(A) in a trade or business of such qualified 
                employer, or
                    ``(B) in the case of a qualified employer exempt 
                from tax under section 501(a), in furtherance of the 
                activities related to the purpose or function 
                constituting the basis of the employer's exemption under 
                section 501.
            ``(2) Qualified <<NOTE: Definition.>> employer.--For 
        purposes of this subsection--
                    ``(A) In general.--The term `qualified employer' 
                means any employer other than the United States, any 
                State, or any political subdivision thereof, or any 
                instrumentality of the foregoing.
                    ``(B) Treatment of employees of post-secondary 
                educational institutions.--Notwithstanding subparagraph 
                (A), the term `qualified employer' includes any employer 
                which is a public institution of higher education (as 
                defined in section 101(b) of the Higher Education Act of 
                1965).
            ``(3) Qualified individual.--
        For <<NOTE: Definition.>> purposes of this subsection, the term 
        `qualified individual' means any individual who--
                    ``(A) begins employment with a qualified employer 
                after February 3, 2010, and before January 1, 2011,
                    ``(B) certifies by signed affidavit, under penalties 
                of perjury, that such individual has not been employed 
                for more than 40 hours during the 60-day period ending 
                on the date such individual begins such employment,
                    ``(C) is not employed by the qualified employer to 
                replace another employee of such employer unless such 
                other employee separated from employment voluntarily or 
                for cause, and
                    ``(D) is not an individual described in section 
                51(i)(1) (applied by substituting `qualified employer' 
                for `taxpayer' each place it appears).
            ``(4) Election.--A qualified employer may elect to have this 
        subsection not apply. Such election shall be made in such manner 
        as the Secretary may require.
            ``(5) Special rule for first calendar quarter of 2010.--
                    ``(A) Nonapplication of exemption during first 
                quarter.--Paragraph (1) shall not apply with respect to 
                wages paid during the first calendar quarter of 2010.
                    ``(B) Crediting of first quarter exemption during 
                second quarter.--The amount by which the tax imposed 
                under subsection (a) would (but for subparagraph (A)) 
                have been reduced with respect to wages paid by a 
                qualified employer during the first calendar quarter of 
                2010 shall be treated as a payment against the tax 
                imposed under subsection (a) with respect to the 
                qualified employer for the second calendar quarter of 
                2010 which is made on the date that such tax is due.''.

[[Page 124 STAT. 74]]

    (b) Coordination With Work Opportunity Credit.--Section 
51(c) <<NOTE: 26 USC 51.>>  is amended by adding at the end the 
following new paragraph:
            ``(5) Coordination with payroll tax forgiveness.--The term 
        `wages' shall not include any amount paid or incurred to a 
        qualified individual (as defined in section 3111(d)(3)) during 
        the 1-year period beginning on the hiring date of such 
        individual by a qualified employer (as defined in section 
        3111(d)) unless such qualified employer makes an election not to 
        have section 3111(d) apply.''.

    (c) Transfers to Federal Old-Age and Survivors Insurance Trust 
Fund.--There are hereby appropriated to the Federal Old-Age and 
Survivors Trust Fund and the Federal Disability Insurance Trust Fund 
established under section 201 of the Social Security Act (42 U.S.C. 401) 
amounts equal to the reduction in revenues to the Treasury by reason of 
the amendments made by subsection (a). Amounts appropriated by the 
preceding sentence shall be transferred from the general fund at such 
times and in such manner as to replicate to the extent possible the 
transfers which would have occurred to such Trust Fund had such 
amendments not been enacted.
    (d) Application to Railroad Retirement Taxes.--
            (1) In general.--Section 3221 of the Internal Revenue Code 
        of 1986 is amended by redesignating subsection (c) as subsection 
        (d) and by inserting after subsection (b) the following new 
        subsection:

    ``(c) Special Rate for Certain Individuals Hired in 2010.--
            ``(1) In general.--In <<NOTE: Time period.>> the case of 
        compensation paid by a qualified employer during the period 
        beginning on the day after the date of the enactment of this 
        subsection and ending on December 31, 2010, with respect to 
        having a qualified individual in the employer's employ for 
        services rendered to such qualified employer, the applicable 
        percentage under subsection (a) shall be equal to the rate of 
        tax in effect under section 3111(b) for the calendar year.
            ``(2) Qualified employer.--The <<NOTE: Definition.>> term 
        `qualified employer' means any employer other than the United 
        States, any State, or any political subdivision thereof, or any 
        instrumentality of the foregoing.
            ``(3) Qualified individual.--
        For <<NOTE: Definition.>> purposes of this subsection, the term 
        `qualified individual' means any individual who--
                    ``(A) begins employment with a qualified employer 
                after February 3, 2010, and before January 1, 2011,
                    ``(B) certifies by signed affidavit, under penalties 
                of perjury, that such individual has not been employed 
                for more than 40 hours during the 60-day period ending 
                on the date such individual begins such employment,
                    ``(C) is not employed by the qualified employer to 
                replace another employee of such employer unless such 
                other employee separated from employment voluntarily or 
                for cause, and
                    ``(D) is not an individual described in section 
                51(i)(1) (applied by substituting `qualified employer' 
                for `taxpayer' each place it appears).
            ``(4) Election.--A qualified employer may elect to have this 
        subsection not apply. Such election shall be made in such manner 
        as the Secretary may require.

[[Page 124 STAT. 75]]

            ``(5) Special rule for first calendar quarter of 2010.--
                    ``(A) Nonapplication of exemption during first 
                quarter.--Paragraph (1) shall not apply with respect to 
                compensation paid during the first calendar quarter of 
                2010.
                    ``(B) Crediting of first quarter exemption during 
                second quarter.--The amount by which the tax imposed 
                under subsection (a) would (but for subparagraph (A)) 
                have been reduced with respect to compensation paid by a 
                qualified employer during the first calendar quarter of 
                2010 shall be treated as a payment against the tax 
                imposed under subsection (a) with respect to the 
                qualified employer for the second calendar quarter of 
                2010 which is made on the date that such tax is due.''.
            (2) Transfers to social security equivalent benefit 
        account.--There are hereby appropriated to the Social Security 
        Equivalent Benefit Account established under section 15A(a) of 
        the Railroad Retirement Act of 1974 (45 U.S.C. 231n-1(a)) 
        amounts equal to the reduction in revenues to the Treasury by 
        reason of the amendments made by paragraph (1). Amounts 
        appropriated by the preceding sentence shall be transferred from 
        the general fund at such times and in such manner as to 
        replicate to the extent possible the transfers which would have 
        occurred to such Account had such amendments not been enacted.

    (e) Effective <<NOTE: Applicability. 26 USC 51 note.>> Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this subsection shall apply to wages paid 
        after the date of the enactment of this Act.
            (2) Railroad retirement taxes.--The amendments made by 
        subsection (d) shall apply to compensation paid after the date 
        of the enactment of this Act.
SEC. 102. <<NOTE: 26 USC 38 note.>> BUSINESS CREDIT FOR RETENTION 
                        OF CERTAIN NEWLY HIRED INDIVIDUALS IN 
                        2010.

    (a) In General.--In the case of any taxable year ending after the 
date of the enactment of this Act, the current year business credit 
determined under section 38(b) of the Internal Revenue Code of 1986 for 
such taxable year shall be increased, with respect to each retained 
worker with respect to which subsection (b)(2) is first satisfied during 
such taxable year, by the lesser of--
            (1) $1,000, or
            (2) 6.2 percent of the wages (as defined in section 3401(a)) 
        paid by the taxpayer to such retained worker during the 52 
        consecutive week period referred to in subsection (b)(2).

    (b) Retained <<NOTE: Definition.>> Worker.--For purposes of this 
section, the term ``retained worker'' means any qualified individual (as 
defined in section 3111(d)(3) or section 3221(c)(3) of the Internal 
Revenue Code of 1986)--
            (1) who was employed by the taxpayer on any date during the 
        taxable year,
            (2) who was so employed by the taxpayer for a period of not 
        less than 52 consecutive weeks, and
            (3) whose wages (as defined in section 3401(a)) for such 
        employment during the last 26 weeks of such period equaled at 
        least 80 percent of such wages for the first 26 weeks of such 
        period.

[[Page 124 STAT. 76]]

    (c) Limitation on Carrybacks.--No portion of the unused business 
credit under section 38 of the Internal Revenue Code of 1986 for any 
taxable year which is attributable to the increase in the current year 
business credit under this section may be carried to a taxable year 
beginning before the date of the enactment of this section.
    (d) Treatment of Possessions.--
            (1) Payments to possessions.--
                    (A) Mirror code possessions.--The Secretary of the 
                Treasury shall pay to each possession of the United 
                States with a mirror code tax system amounts equal to 
                the loss to that possession by reason of the application 
                of this section (other than this subsection). 
                Such <<NOTE: Determination.>> amounts shall be 
                determined by the Secretary of the Treasury based on 
                information provided by the government of the respective 
                possession.
                    (B) Other possessions.--
                The <<NOTE: Estimate.>> Secretary of the Treasury shall 
                pay to each possession of the United States which does 
                not have a mirror code tax system amounts estimated by 
                the Secretary of the Treasury as being equal to the 
                aggregate benefits that would have been provided to 
                residents of such possession by reason of the 
                application of this section (other than this subsection) 
                if a mirror code tax system had been in effect in such 
                possession. The <<NOTE: Plans.>> preceding sentence 
                shall not apply with respect to any possession of the 
                United States unless such possession has a plan, which 
                has been approved by the Secretary of the Treasury, 
                under which such possession will promptly distribute 
                such payments to the residents of such possession.
            (2) Coordination with credit allowed against united states 
        income taxes.--No increase in the credit determined under 
        section 38(b) of the Internal Revenue Code of 1986 against 
        United States income taxes for any taxable year determined under 
        subsection (a) shall be taken into account with respect to any 
        person--
                    (A) to whom a credit is allowed against taxes 
                imposed by the possession by reason of this section for 
                such taxable year, or
                    (B) who is eligible for a payment under a plan 
                described in paragraph (1)(B) with respect to such 
                taxable year.
            (3) Definitions and special rules.--
                    (A) Possession of the united states.--For purposes 
                of this subsection, the term ``possession of the United 
                States'' includes the Commonwealth of Puerto Rico and 
                the Commonwealth of the Northern Mariana Islands.
                    (B) Mirror code tax system.--For purposes of this 
                subsection, the term ``mirror code tax system'' means, 
                with respect to any possession of the United States, the 
                income tax system of such possession if the income tax 
                liability of the residents of such possession under such 
                system is determined by reference to the income tax laws 
                of the United States as if such possession were the 
                United States.
                    (C) Treatment of payments.--
                For <<NOTE: Applicability.>> purposes of section 
                1324(b)(2) of title 31, United States Code, rules 
                similar to the rules of section 1001(b)(3)(C) of the 
                American Recovery and Reinvestment Tax Act of 2009 shall 
                apply.

[[Page 124 STAT. 77]]

                           TITLE II--EXPENSING

SEC. 201. INCREASE IN EXPENSING OF CERTAIN DEPRECIABLE BUSINESS 
                        ASSETS.

    (a) In General.--Subsection (b) of <<NOTE: 26 USC 179.>> section 179 
is amended--
            (1) by striking ``($125,000 in the case of taxable years 
        beginning after 2006 and before 2011)'' in paragraph (1) and 
        inserting ``($250,000 in the case of taxable years beginning 
        after 2007 and before 2011)'',
            (2) by striking ``($500,000 in the case of taxable years 
        beginning after 2006 and before 2011)'' in paragraph (2) and 
        inserting ``($800,000 in the case of taxable years beginning 
        after 2007 and before 2011)'',
            (3) by striking paragraphs (5) and (7), and
            (4) by redesignating paragraph (6) as paragraph (5).

    (b) Effective <<NOTE: Applicability. 26 USC 179 note.>> Date.--The 
amendments made by this section shall apply to taxable years beginning 
after December 31, 2009.

                  TITLE III--QUALIFIED TAX CREDIT BONDS

SEC. 301. ISSUER ALLOWED REFUNDABLE CREDIT FOR CERTAIN QUALIFIED 
                        TAX CREDIT BONDS.

    (a) Credit Allowed.--Section 6431 is amended by adding at the end 
the following new subsection:
    ``(f) Application of Section to Certain Qualified Tax Credit 
Bonds.--
            ``(1) In general.--In the case of any specified tax credit 
        bond--
                    ``(A) such bond shall be treated as a qualified bond 
                for purposes of this section,
                    ``(B) subsection (a) shall be applied without regard 
                to the requirement that the qualified bond be issued 
                before January 1, 2011,
                    ``(C) the amount of the payment determined under 
                subsection (b) with respect to any interest payment due 
                under such bond shall be equal to the lesser of--
                          ``(i) the amount of interest payable under 
                      such bond on such date, or
                          ``(ii) the amount of interest which would have 
                      been payable under such bond on such date if such 
                      interest were determined at the applicable credit 
                      rate determined under section 54A(b)(3),
                    ``(D) interest on any such bond shall be includible 
                in gross income for purposes of this title,
                    ``(E) no credit shall be allowed under section 54A 
                with respect to such bond,
                    ``(F) any payment made under subsection (b) shall 
                not be includible as income for purposes of this title, 
                and
                    ``(G) the deduction otherwise allowed under this 
                title to the issuer of such bond with respect to 
                interest paid under such bond shall be reduced by the 
                amount of the payment made under this section with 
                respect to such interest.

[[Page 124 STAT. 78]]

            ``(2) Special rule for new clean renewable energy bonds and 
        qualified energy conservation bonds.--In the case of any 
        specified tax credit bond described in clause (i) or (ii) of 
        paragraph (3)(A), the amount determined under paragraph 
        (1)(C)(ii) shall be 70 percent of the amount so determined 
        without regard to this paragraph and sections 54C(b) and 54D(b).
            ``(3) Specified tax credit bond.--For purposes of this 
        subsection, the term `specified tax credit bond' means any 
        qualified tax credit bond (as defined in section 54A(d)) if--
                    ``(A) such bond is--
                          ``(i) a new clean renewable energy bond (as 
                      defined in section 54C),
                          ``(ii) a qualified energy conservation bond 
                      (as defined in section 54D),
                          ``(iii) a qualified zone academy bond (as 
                      defined in section 54E), or
                          ``(iv) a qualified school construction bond 
                      (as defined in section 54F), and
                    ``(B) the issuer of such bond makes an irrevocable 
                election to have this subsection apply.''.

    (b) Technical Corrections Relating to Qualified School Construction 
Bonds.--
            (1) The second sentence of section 54F(d)(1) <<NOTE: 26 USC 
        54.>> is amended by striking ``by the State'' and inserting ``by 
        the State education agency (or such other agency as is 
        authorized under State law to make such allocation)''.
            (2) The second sentence of section 54F(e) is amended by 
        striking ``subsection (d)(4)'' and inserting ``paragraphs (2) 
        and (4) of subsection (d)''.

    (c) Effective Dates.--
            (1) In general.--The <<NOTE: Applicability. 26 USC 6431 
        note.>> amendment made by subsection (a) shall apply to bonds 
        issued after the date of the enactment of this Act.
            (2) Technical <<NOTE: 26 USC 54F note.>> corrections.--The 
        amendments made by subsection (b) shall take effect as if 
        included in section 1521 of the American Recovery and 
        Reinvestment Tax Act of 2009.

  TITLE IV--EXTENSION <<NOTE: Surface Transportation Extension Act of 
2010.>> OF CURRENT SURFACE TRANSPORTATION PROGRAMS
SEC. 401. <<NOTE: 23 USC 101 note.>> SHORT TITLE.

    This title may be cited as the ``Surface Transportation Extension 
Act of 2010''.

                    Subtitle A--Federal-aid Highways

SEC. 411. IN GENERAL.

    (a) In General.--Except <<NOTE: Incorporation by 
reference. Termination date.>> as provided in this Act, requirements, 
authorities, conditions, eligibilities, limitations, and other 
provisions authorized under titles I, V, and VI of the SAFETEA-LU (119 
Stat. 1144), the SAFETEA-LU Technical Corrections Act of 2008

[[Page 124 STAT. 79]]

(122 Stat. 1572), titles I and VI of the Intermodal Surface 
Transportation Act of 1991 (105 Stat. 1914), titles I and V of the 
Transportation Equity Act for the 21st Century (112 Stat. 107), and 
title 23, United States Code (excluding chapter 4 of that title), which 
would otherwise expire on or cease to apply after September 30, 2009, or 
the date specified in section 106(3) of the Continuing Appropriations 
Resolution, 2010 (Public Law 111-68), are incorporated by reference and 
shall continue in effect until December 31, 2010.

    (b) Authorization of Appropriations.--Except as provided in section 
412, there are authorized to be appropriated out of the Highway Trust 
Fund (other than the Mass Transit Account)--
            (1) for fiscal year 2010, a sum equal to the total amount 
        authorized to be appropriated out of the Highway Trust Fund for 
        programs, projects, and activities for fiscal year 2009 under 
        titles I, V, and VI of the SAFETEA-LU (119 Stat. 1144), and 
        title 23, United States Code (excluding chapter 4 of that 
        title); and
            (2) for <<NOTE: Time period.>> the period beginning on 
        October 1, 2010, and ending on December 31, 2010, a sum equal to 
        \1/4\ of the total amount authorized to be appropriated out of 
        the Highway Trust Fund for programs, projects, and activities 
        for fiscal year 2009 under titles I, V, and VI of the SAFETEA-LU 
        (119 Stat. 1144), and title 23, United States Code (excluding 
        chapter 4 of that title).

    (c) Use of Funds.--
            (1) Fiscal year 2010.--Except as otherwise expressly 
        provided in this Act, funds authorized to be appropriated under 
        subsection (b)(1) for fiscal year 2010 shall be distributed, 
        administered, limited, and made available for obligation in the 
        same manner and at the same level as funds authorized to be 
        appropriated out of the Highway Trust Fund for fiscal year 2009 
        to carry out programs, projects, activities, eligibilities, and 
        requirements under the SAFETEA-LU (119 Stat. 1144), the SAFETEA-
        LU Technical Corrections Act of 2008 (122 Stat. 1572), titles I 
        and VI of the Intermodal Surface Transportation Act of 1991 (105 
        Stat. 1914), titles I and V of the Transportation Equity Act for 
        the 21st Century (112 Stat. 107), and title 23, United States 
        Code (excluding chapter 4 of that title).
            (2) Fiscal year 2011.--Except as otherwise expressly 
        provided in this Act, funds authorized to be appropriated under 
        subsection (b)(2) for the period beginning on October 1, 2010, 
        and ending on December 31, 2010, shall be distributed, 
        administered, limited, and made available for obligation in the 
        same manner and at the same level as \1/4\ of the total amount 
        of funds authorized to be appropriated out of the Highway Trust 
        Fund for fiscal year 2009 to carry out programs, projects, 
        activities, eligibilities, and requirements under the SAFETEA-LU 
        (119 Stat. 1144), the SAFETEA-LU Technical Corrections Act of 
        2008 (122 Stat. 1572), titles I and VI of the Intermodal Surface 
        Transportation Act of 1991 (105 Stat. 1914), titles I and V of 
        the Transportation Equity Act for the 21st Century (112 Stat. 
        107), and title 23, United States Code (excluding chapter 4 of 
        that title).
            (3) Calculation.--The amounts authorized to be appropriated 
        under subsection (b) shall be calculated without regard to any 
        rescission or cancellation of funds or contract authority

[[Page 124 STAT. 80]]

        for fiscal year 2009 under the SAFETEA-LU (119 Stat. 1144) or 
        any other law.
            (4) Contract authority.--
                    (A) In general.--Except as provided in subparagraph 
                (B), funds authorized to be appropriated under this 
                section shall be available for obligation and shall be 
                administered in the same manner as if such funds were 
                apportioned under chapter 1 of title 23, United States 
                Code, and--
                          (i) for fiscal year 2010, shall be subject to 
                      a limitation on obligations for Federal-aid 
                      highways and highway safety construction programs 
                      included in an Act making appropriations for 
                      fiscal year 2010 or a portion of that fiscal year; 
                      and
                          (ii) for <<NOTE: Time period.>> the period 
                      beginning on October 1, 2010, and ending on 
                      December 31, 2010, shall be subject to a 
                      limitation on obligations included in an Act 
                      making appropriations for fiscal year 2011 or a 
                      portion of that fiscal year, except that during 
                      such period obligations subject to such limitation 
                      shall not exceed \1/4\ of the limitation on 
                      obligations included in an Act making 
                      appropriations for fiscal year 2011.
                    (B) Exceptions.--A limitation on obligations 
                described in clause (i) or (ii) of subparagraph (A) 
                shall not apply to any obligation under--
                          (i) section 125 of title 23, United States 
                      Code; or
                          (ii) section 105 of title 23, United States 
                      Code--
                                    (I) for fiscal year 2010, only in an 
                                amount equal to $639,000,000; and
                                    (II) <<NOTE: Time period.>>  for the 
                                period beginning on October 1, 2010, and 
                                ending on December 31, 2010, only in an 
                                amount equal to $159,750,000.
            (5) Calculations for distribution of obligation 
        limitation.--Upon enactment of an Act making appropriations for 
        the Department of Transportation for fiscal year 2011 (other 
        than an Act or resolution making continuing appropriations), the 
        Secretary shall--
                    (A) as necessary for purposes of making the 
                calculations for the distribution of any obligation 
                limitation under such Act, annualize the amount of 
                contract authority provided under this Act for Federal-
                aid highways and highway safety construction programs; 
                and
                    (B) multiply the resulting distribution of any 
                obligation limitation under such Act by \1/4\.

    (d) Extension and Flexibility for Certain Allocated Programs.--
            (1) Fiscal year 2010.--Notwithstanding any other provision 
        of law, for fiscal year 2010, the portion of the share of funds 
        of a State under subsection (b)(1) determined by the amount that 
        the State received or was authorized to receive for fiscal year 
        2009 to carry out sections 1301, 1302, 1307, 1702, and 1934 of 
        the SAFETEA-LU (119 Stat. 1198, 1204, 1217, 1256, and 1485), and 
        section 144(f)(1) of title 23, United States Code, shall be--
                    (A) made available to the State for programs 
                apportioned under sections 104(b) and 144 of title 23, 
                United

[[Page 124 STAT. 81]]

                States Code, and in the same proportion for each such 
                program that--
                          (i) the amount apportioned to the State for 
                      that program for fiscal year 2009; bears to
                          (ii) the amount apportioned to the State for 
                      fiscal year 2009 for all programs apportioned 
                      under such sections of such Code; and
                    (B) administered in the same manner and with the 
                same period of availability as such funding is 
                administered under programs identified in subparagraph 
                (A), except that no funds may be used to carry out the 
                project described in section 1307(d)(1) of the SAFETEA-
                LU (119 Stat. 1217; 122 Stat. 1577).
            (2) Fiscal year 2011.--Notwithstanding any other provision 
        of law, for the period beginning on October 1, 2010, and ending 
        on December 31, 2010, the portion of the share of funds of a 
        State under subsection (b)(2) determined by \1/4\ of the amount 
        that the State received or was authorized to receive for fiscal 
        year 2009 to carry out sections 1301, 1302, 1307, 1702, and 1934 
        of the SAFETEA-LU (119 Stat. 1198, 1204, 1217, 1256, and 1485) 
        and section 144(f)(1) of title 23, United States Code, shall 
        be--
                    (A) made available to the State for programs 
                apportioned under sections 104(b) and 144 of title 23, 
                United States Code, and in the same proportion for each 
                such program that--
                          (i) the amount apportioned to the State for 
                      that program for fiscal year 2009; bears to
                          (ii) the amount apportioned to the State for 
                      fiscal year 2009 for all programs apportioned 
                      under such sections of such Code; and
                    (B) administered in the same manner and with the 
                same period of availability as such funding is 
                administered under programs identified in subparagraph 
                (A), except that no funds may be used to carry out the 
                project described in section 1307(d)(1) of the SAFETEA-
                LU (119 Stat. 1217; 122 Stat. 1577).
            (3) Territories and puerto rico.--
                    (A) Fiscal year 2010.--Notwithstanding any other 
                provision of law, for fiscal year 2010, the portion of 
                the share of funds of a territory or Puerto Rico under 
                paragraph (b)(1) determined by the amount that the 
                territory or Puerto Rico received or was authorized to 
                receive for fiscal year 2009 to carry out section 1934 
                of SAFETEA-LU (119 Stat. 1485), shall be--
                          (i) for a territory, made available and 
                      administered in the same manner as funding is made 
                      available and administered under section 215 of 
                      title 23, United States Code; and
                          (ii) for Puerto Rico, made available and 
                      administered in the same manner as funding is made 
                      available and administered under section 165 of 
                      title 23, United States Code.
                    (B) Fiscal year 2011.--Notwithstanding any other 
                provision of law, for the period beginning on October 1, 
                2010, and ending on December 31, 2010, the portion of 
                the share of funds of a territory or Puerto Rico under

[[Page 124 STAT. 82]]

                paragraph (b)(2) determined by \1/4\ of the amount that 
                the territory or Puerto Rico received or was authorized 
                to receive for fiscal year 2009 to carry out section 
                1934 of SAFETEA-LU (119 Stat. 1485), shall be--
                          (i) for a territory, made available and 
                      administered in the same manner as funding is made 
                      available and administered under section 215 of 
                      title 23, United States Code; and
                          (ii) for Puerto Rico, made available and 
                      administered in the same manner as funding is made 
                      available and administered under section 165 of 
                      title 23, United States Code.
                    (C) Territory defined.--In this paragraph, the term 
                ``territory'' means any of the following territories of 
                the United States: American Samoa, the Commonwealth of 
                the Northern Mariana Islands, Guam, or the United States 
                Virgin Islands.
            (4) Additional funds.--
                    (A) In general.--
                No <<NOTE: Determination.>> additional funds shall be 
                provided for any project or activity under subsection 
                (c), or paragraph (1) or (2) of this subsection, that 
                the Secretary of Transportation determines was 
                sufficiently funded before or during fiscal year 2009 to 
                achieve the authorized purpose of the project or 
                activity.
                    (B) Reservation and redistribution of funds.--Funds 
                made available in accordance with paragraph (1) or (2) 
                of subsection (c) or paragraph (1) or (2) of this 
                subsection for a project or activity described in 
                subparagraph (A) shall be--
                          (i) reserved by the Secretary of 
                      Transportation; and
                          (ii) distributed to each State in accordance 
                      with paragraph (1) or (2) of subsection (c), or 
                      paragraph (1) or (2) of this subsection, as 
                      appropriate, for use in carrying out other highway 
                      projects and activities extended by subsection (c) 
                      or this subsection, in the proportion that--
                                    (I) the total amount of funds made 
                                available for fiscal year 2009 for 
                                projects and activities described in 
                                subparagraph (A) in the State; bears to
                                    (II) the total amount of funds made 
                                available for fiscal year 2009 for those 
                                projects and activities in all States.

    (e) Extension of Authorizations Under Title V of SAFETEA-LU.--
            (1) In general.--The programs authorized under paragraphs 
        (1) through (5) of section 5101(a) of the SAFETEA-LU (119 Stat. 
        1779) shall be continued--
                    (A) for fiscal year 2010, at the funding levels 
                authorized for those programs for fiscal year 2009; and
                    (B) for <<NOTE: Time period.>> the period beginning 
                on October 1, 2010, and ending on December 31, 2010, at 
                \1/4\ the funding levels authorized for those programs 
                for fiscal year 2009.
            (2) Distribution of funds.--Funds for programs continued 
        under paragraph (1) shall be distributed to major program areas 
        under those programs in the same proportions as funds

[[Page 124 STAT. 83]]

        were allocated for those program areas for fiscal year 2009, 
        except that designations for specific activities shall not be 
        required to be continued for--
                    (A) fiscal year 2010; or
                    (B) the period beginning on October 1, 2010, and 
                ending on December 31, 2010.
            (3) Additional funds.--
                    (A) In general.--
                No <<NOTE: Determination.>> additional funds shall be 
                provided for any project or activity under this 
                subsection that the Secretary of Transportation 
                determines was sufficiently funded before or during 
                fiscal year 2009 to achieve the authorized purpose of 
                the project or activity.
                    (B) Distribution.--Funds that would have been made 
                available under paragraph (1) for a project or activity 
                but for the prohibition under subparagraph (A) shall be 
                distributed in accordance with paragraph (2).
SEC. 412. ADMINISTRATIVE EXPENSES.

    (a) Authorization of Contract Authority.--Notwithstanding any other 
provision of this Act or any other law, there are authorized to be 
appropriated from the Highway Trust Fund (other than the Mass Transit 
Account), from amounts provided under section 411, for administrative 
expenses of the Federal-aid highway program--
            (1) $422,425,000 for fiscal year 2010; and
            (2) $105,606,250 <<NOTE: Time period.>> for the period 
        beginning on October 1, 2010, and ending on December 31, 2010.

    (b) Contract Authority.--Funds authorized to be appropriated by this 
section shall be--
            (1) available for obligation, and shall be administered, in 
        the same manner as if such funds were apportioned under chapter 
        1 of title 23, United States Code; and
            (2) subject to a limitation on obligations for Federal-aid 
        highways and highway safety construction programs, except that 
        such funds shall remain available until expended.
SEC. 413. RESCISSION OF UNOBLIGATED BALANCES.

    (a) In General.--The Secretary of Transportation shall restore funds 
rescinded pursuant to section 10212 of the SAFETEA-LU (Public Law 109-
59; 119 Stat. 1937) to the States and to the programs from which the 
funds were rescinded.
    (b) Administration of Funds.--The restored amounts shall be 
administered in the same manner as the funds originally rescinded, 
except those funds may only be used with an obligation limitation 
provided in an Act making appropriations for Federal-aid highways and 
highway safety construction programs enacted after implementation of the 
rescission under section 10212 of the SAFETEA-LU (Public Law 109-59; 119 
Stat. 1937).
    (c) Funding.--
            (1) In general.--There is authorized to be appropriated from 
        the Highway Trust Fund (other than the Mass Transit Account) for 
        fiscal year 2010 to carry out this section an amount equal to 
        the amount of funds rescinded under section 10212 of the 
        SAFETEA-LU (Public Law 109-59; 119 Stat. 1937).
            (2) Availability for obligation.--Funds authorized to be 
        appropriated by this section shall be--
                    (A) made available under this section and available 
                for obligation in the same manner as if the funds were

[[Page 124 STAT. 84]]

                apportioned under chapter 1 of title 23, United States 
                Code, except that the funds shall retain the 
                characteristics of the funds originally rescinded; and
                    (B) subject to a limitation on obligations for 
                Federal-aid highways and highway safety construction 
                programs included in an Act making appropriations for 
                fiscal year 2010 or a portion of the fiscal year.

    (d) Limitation.--No funds authorized to be restored under this 
section shall be restored after the end of fiscal year 2010.
SEC. 414. RECONCILIATION OF FUNDS.

    The Secretary shall reduce the amount apportioned or allocated for a 
program, project, or activity under this title by amounts apportioned or 
allocated pursuant to the Continuing Appropriations Resolution, 2010 
(Public Law 111-68).

  Subtitle B--National Highway Traffic Safety Administration, Federal 
      Motor Carrier Safety Administration, and Additional Programs

SEC. 421. EXTENSION OF NATIONAL HIGHWAY TRAFFIC SAFETY 
                        ADMINISTRATION HIGHWAY SAFETY PROGRAMS.

    (a) Chapter 4 Highway Safety Programs.--Section 2001(a)(1) of the 
SAFETEA-LU (119 Stat. 1519) is amended--
            (1) by striking ``and''; and
            (2) by striking ``2009.'' and inserting ``2009, $235,000,000 
        for fiscal year 2010, and $58,750,000 for the period beginning 
        on October 1, 2010, and ending on December 31, 2010.''.

    (b) Highway Safety Research and Development.--Section 2001(a)(2) of 
the SAFETEA-LU (119 Stat. 1519) is amended--
            (1) by striking ``and''; and
            (2) by striking ``2009.'' and inserting ``2009, $107,329,000 
        for fiscal year 2010, and $27,061,000 for the period beginning 
        on October 1, 2010, and ending on December 31, 2010.''.

    (c) Occupant Protection Incentive Grants.--
            (1) Extension of program.--Section 405(a) of title 23, 
        United States Code, is amended--
                    (A) in paragraph (3), by striking ``6'' and 
                inserting ``8''; and
                    (B) in paragraph (4)(C), by striking ``fifth and 
                sixth'' and inserting ``fifth through eighth''.
            (2) Authorization of appropriations.--Section 2001(a)(3) of 
        the SAFETEA-LU (119 Stat. 1519) is amended--
                    (A) by striking ``and''; and
                    (B) by striking ``2009.'' and inserting ``2009, 
                $25,000,000 for fiscal year 2010, and $6,250,000 for the 
                period beginning on October 1, 2010, and ending on 
                December 31, 2010.''.

    (d) Safety Belt Performance Grants.--Section 2001(a)(4) of the 
SAFETEA-LU (119 Stat. 1519) is amended--
            (1) by striking ``and''; and
            (2) by striking ``2009.'' and inserting ``2009, $124,500,000 
        for fiscal year 2010, and $31,125,000 for the period beginning 
        on October 1, 2010, and ending on December 31, 2010.''.

[[Page 124 STAT. 85]]

    (e) State Traffic Safety Information System Improvements.--Section 
2001(a)(5) of the SAFETEA-LU (119 Stat. 1519) is amended--
            (1) by striking ``and''; and
            (2) by striking ``2009.'' and inserting ``2009, $34,500,000 
        for fiscal year 2010, and $8,625,000 for the period beginning on 
        October 1, 2010, and ending on December 31, 2010.''.

    (f) Alcohol-impaired Driving Countermeasures Incentive Grant 
Program.--
            (1) Extension of program.--Section 410 of title 23, United 
        States Code, is amended--
                    (A) in subsection (a)(3)(C), by striking ``fifth, 
                sixth, seventh, and eighth'' and inserting ``fifth 
                through tenth''; and
                    (B) in subsection (b)(2)(C), by striking ``2008 and 
                2009'' and inserting ``2008, 2009, 2010, and 2011''.
            (2) Authorization of appropriations.--Section 2001(a)(6) of 
        the SAFETEA-LU (119 Stat. 1519) is amended--
                    (A) by striking ``and''; and
                    (B) by striking ``2009.'' and inserting ``2009, 
                $139,000,000 for fiscal year 2010, and $34,750,000 for 
                the period beginning on October 1, 2010, and ending on 
                December 31, 2010.''.

    (g) National Driver Register.--Section 2001(a)(7) of the SAFETEA-LU 
(119 Stat. 1520) is amended--
            (1) by striking ``and''; and
            (2) by striking ``2009.'' and inserting ``2009, $4,078,000 
        for fiscal year 2010, and $1,029,000 for the period beginning on 
        October 1, 2010, and ending on December 31, 2010.''.

    (h) High Visibility Enforcement Program.--
            (1) Extension of program.--Section 2009(a) of the SAFETEA-LU 
        (23 U.S.C. 402 note) is amended by striking ``2009'' and 
        inserting ``2011''.
            (2) Authorization of appropriations.--Section 2001(a)(8) of 
        the SAFETEA-LU (119 Stat. 1520) is amended--
                    (A) by striking ``and''; and
                    (B) by striking ``2009.'' and inserting ``2009, 
                $29,000,000 for fiscal year 2010, and $7,250,000 for the 
                period beginning on October 1, 2010, and ending on 
                December 31, 2010.''.

    (i) Motorcyclist Safety.--
            (1) Extension of program.--Section 2010(d)(1)(B) of the 
        SAFETEA-LU (23 U.S.C. 402 note) is amended by striking ``and 
        fourth'' and inserting ``fourth, fifth, and sixth''.
            (2) Authorization of appropriations.--Section 2001(a)(9) of 
        the SAFETEA-LU (119 Stat. 1520) is amended--
                    (A) by striking ``and''; and
                    (B) by striking ``2009.'' and inserting ``2009, 
                $7,000,000 for fiscal year 2010, and $1,750,000 for the 
                period beginning on October 1, 2010, and ending on 
                December 31, 2010.''.

    (j) Child Safety and Child Booster Seat Safety Incentive Grants.--
            (1) Extension of program.--Section 2011(c)(2) of the 
        SAFETEA-LU (23 U.S.C. 405 note) is amended by striking ``fourth 
        fiscal year'' and inserting ``fourth, fifth, and sixth fiscal 
        years''.
            (2) Authorization of appropriations.--Section 2001(a)(10) of 
        the SAFETEA-LU (119 Stat. 1520) is amended--

[[Page 124 STAT. 86]]

                    (A) by striking ``and''; and
                    (B) by striking ``2009.'' and inserting ``2009, 
                $7,000,000 for fiscal year 2010, and $1,750,000 for the 
                period beginning on October 1, 2010, and ending on 
                December 31, 2010.''.

    (k) Administrative Expenses.--Section 2001(a)(11) of the SAFETEA-LU 
(119 Stat. 1520) is amended--
            (1) by striking ``and'' the last place it appears; and
            (2) by striking ``2009.'' and inserting ``2009, $25,047,000 
        for fiscal year 2010, and $6,332,000 for the period beginning on 
        October 1, 2010, and ending on December 31, 2010.''.

    (l) Applicability of Title 23.--Section 2001(c) of the SAFETEA-LU 
(119 Stat. 1520) is amended by striking ``2009'' and inserting ``2011''.
    (m) Drug-impaired Driving Enforcement.--Section 2013(f) of the 
SAFETEA-LU (23 U.S.C. 403 note) is amended by striking ``2009'' and 
inserting ``2011''.
    (n) Older Driver Safety; Law Enforcement Training.--Section 2017 of 
the SAFETEA-LU is amended--
            (1) in subsection (a)(1) (119 Stat. 1541), by striking 
        ``2009'' and inserting ``2011''; and
            (2) in subsection (b)(2) (23 U.S.C. 402 note), by striking 
        ``2009'' and inserting ``2011''.
SEC. 422. EXTENSION OF FEDERAL MOTOR CARRIER SAFETY ADMINISTRATION 
                        PROGRAMS.

    (a) Motor Carrier Safety Grants.--Section 31104(a) of title 49, 
United States Code, is amended--
            (1) in paragraph (4), by striking ``and'' at the end;
            (2) in paragraph (5), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(6) $209,000,000 for fiscal year 2010; and
            ``(7) $52,679,000 for the period beginning on October 1, 
        2010, and ending on December 31, 2010.''.

    (b) Administrative Expenses.--Section 31104(i)(1) of title 49, 
United States Code, is amended--
            (1) in subparagraph (D), by striking ``and'';
            (2) in subparagraph (E), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(F) ``(F) $239,828,000 for fiscal year 2010; and
                    ``(G) ``(G) $61,036,000 for the period beginning on 
                October 1, 2010, and ending on December 31, 2010.''.

    (c) Grant Programs.--Section 4101(c) of the SAFETEA-LU (119 Stat. 
1715) is amended--
            (1) in paragraph (1), by striking ``2009.'' and inserting 
        ``2009, and $25,000,000 for fiscal year 2010, and $6,301,000 for 
        the period beginning on October 1, 2010, and ending on December 
        31, 2010.'';
            (2) in paragraph (2), by striking ``2009.'' and inserting 
        ``2009, $32,000,000 for fiscal year 2010, and $8,066,000 for the 
        period beginning on October 1, 2010, and ending on December 31, 
        2010.'';
            (3) in paragraph (3), by striking ``2009.'' and inserting 
        ``2009, $5,000,000 for fiscal year 2010, and $1,260,000 for the 
        period beginning on October 1, 2010, and ending on December 31, 
        2010.'';

[[Page 124 STAT. 87]]

            (4) in paragraph (4), by striking ``2009.'' and inserting 
        ``2009, $25,000,000 for fiscal year 2010, and $6,301,000 for the 
        period beginning on October 1, 2010, and ending on December 31, 
        2010.''; and
            (5) in paragraph (5), by striking ``2009.'' and inserting 
        ``2009, $3,000,000 for fiscal year 2010, and $756,000 for the 
        period beginning on October 1, 2010, and ending on December 31, 
        2010.''.

    (d) High-priority Activities.--Section 31104(k) of title 49, United 
States Code, is amended by striking ``2009'' in paragraph (2) and 
inserting ``2009, $15,000,000 for fiscal year 2010, and $3,781,000 for 
the period beginning on October 1, 2010, and ending on December 31, 
2010''.
    (e) New Entrant Audits.--Section 31144(g)(5)(B) of title 49, United 
States Code, is amended by inserting ``(and up to $7,310,000 for the 
period beginning on October 1, 2010, and ending on December 31, 2010)'' 
after ``fiscal year''.
    (f) Commercial Driver's License Information System Modernization.--
Section 4123(d) of the <<NOTE: 49 USC 31309 note.>> SAFETEA-LU (119 
Stat. 1736) is amended--
            (1) in paragraph (3), by striking ``and'' at the end;
            (2) in paragraph (4), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(5) $8,000,000 for fiscal year 2010; and
            ``(6) $2,016,000 for the period beginning on October 1, 
        2010, and ending on December 31, 2010.''.

    (g) Outreach and Education.--Section 4127(e) of the SAFETEA-LU (119 
Stat. 1741) is <<NOTE: 49 USC 31100 note.>> amended by striking ``and 
2009'' and inserting ``2009, and 2010, and $252,000 to the Federal Motor 
Carrier Safety Administration, and $756,000 to the National Highway 
Traffic Safety Administration, for the period beginning on October 1, 
2010, and ending on December 31, 2010,''.

    (h) Grant Program for Commercial Motor Vehicle Operators.--Section 
4134(c) of the SAFETEA-LU (119 Stat. 1744) <<NOTE: 49 USC 31301 
note.>> is amended by striking ``2009'' and inserting ``2009, 2010, and 
$252,000 for the period beginning on October 1, 2010, and ending on 
December 31, 2010,''.

    (i) Motor Carrier Safety Advisory Committee.--Section 4144(d) of the 
SAFETEA-LU (1119 Stat. 1748) <<NOTE: 49 USC 31100 note.>> is amended by 
striking ``September 30, 2010'' and inserting ``December 31, 2010''.

    (j) Working Group for Development of Practices and Procedures To 
Enhance Federal-State Relations.--Section 4213(d) of the SAFETEA-LU (49 
U.S.C. 14710 note) is amended by striking ``September 30, 2009'' and 
inserting ``December 31, 2010''.
SEC. 423. ADDITIONAL PROGRAMS.

    (a) Hazardous Materials Research Projects.--Section 7131(c) of the 
SAFETEA-LU (119 Stat. 1910) is amended by striking ``through 2009'' and 
inserting ``through 2010, and $315,000 for the period beginning on 
October 1, 2010, and ending on December 31, 2010,''.
    (b) Dingell-Johnson Sport Fish Restoration Act.--Section 4 of the 
Dingell-Johnson Sport Fish Restoration Act (16 U.S.C. 777c) is amended--

[[Page 124 STAT. 88]]

            (1) in subsection (a), in the matter preceding paragraph 
        (1), by striking ``2009,'' and inserting ``2010 and for the 
        period beginning on October 1, 2010, and ending on December 31, 
        2010,''; and
            (2) in subsection (b)(1)(A), by striking ``2010,'' and 
        inserting ``and for the period beginning on October 1, 2010, and 
        ending on December 31, 2010,''.

               Subtitle C--Public Transportation Programs

SEC. 431. ALLOCATION OF FUNDS FOR PLANNING PROGRAMS.

    Section 5305(g) of title 49, United States Code, is amended by 
striking ``2009'' and inserting ``2010, and for the period beginning 
October 1, 2010, and ending December 31, 2010,''.
SEC. 432. SPECIAL RULE FOR URBANIZED AREA FORMULA GRANTS.

    Section 5307(b)(2) of title 49, United States Code, is amended--
            (1) in the paragraph heading, by striking ``2009'' and 
        inserting ``2010, and the period beginning october 1, 2010, and 
        ending december 31, 2010'';
            (2) in subparagraph (A), by striking ``2009,'' and inserting 
        ``2010, and the period beginning October 1, 2010, and ending 
        December 31, 2010,''; and
            (3) in subparagraph (E)--
                    (A) in the subparagraph heading, by striking ``and 
                2009'' and inserting ``through 2010 and during the 
                period beginning october 1, 2010, and ending december 
                31, 2010''; and
                    (B) in the matter preceding clause (i), by striking 
                ``and 2009'' and inserting ``through 2010, and during 
                the period beginning October 1, 2010, and ending 
                December 31, 2010,''.
SEC. 433. ALLOCATING AMOUNTS FOR CAPITAL INVESTMENT GRANTS.

    Section 5309(m) of title 49, United States Code, is amended--
            (1) in paragraph (2)--
                    (A) in the heading, by striking ``2009'' and 
                inserting ``2010 and october 1, 2010, through december 
                31, 2010'';
                    (B) in the matter preceding subparagraph (A), by 
                striking ``2009'' and inserting ``2010, and during the 
                period beginning October 1, 2010, and ending December 
                31, 2010,''; and
                    (C) in subparagraph (A)(i), by striking ``2009'' and 
                inserting ``2010, and $50,000,000 for the period 
                beginning October 1, 2010, and ending December 31, 
                2010,'';
            (2) in paragraph (6)--
                    (A) in subparagraph (B), by striking ``2009'' and 
                inserting ``2010, and $3,750,000 shall be available for 
                the period beginning October 1, 2010, and ending 
                December 31, 2010,''; and
                    (B) in subparagraph (C), by striking ``2009'' and 
                inserting ``2010, and $1,250,000 shall be available for 
                the period beginning October 1, 2010 and ending December 
                31, 2010,''; and
            (3) in paragraph (7)--

[[Page 124 STAT. 89]]

                    (A) in subparagraph (A)--
                          (i) by redesignating clauses (i) through 
                      (viii) as subclauses (I) through (VIII), 
                      respectively;
                          (ii) in the matter preceding subclause (I), as 
                      so redesignated, by striking ``$10,000,000'' and 
                      all that follows through ``2009'' and inserting 
                      the following:
                          ``(i) Fiscal years 2006 through 2010.--
                      $10,000,000 shall be available in each of fiscal 
                      years 2006 through 2010''; and
                          (iii) by inserting after subclause (VIII), as 
                      so redesignated, the following:
                          ``(ii) Special rule for october 1, 2010, 
                      through december 31, 2010.--$2,500,000 shall be 
                      available in the period beginning October 1, 2010, 
                      and ending December 31, 2010, for ferry boats or 
                      ferry terminal facilities. The Secretary shall set 
                      aside a portion of such amount in accordance with 
                      clause (i), except that the Secretary shall set 
                      aside 25 percent of each dollar amount specified 
                      in subclauses (I) through (VIII).'';''.
                    (B) in subparagraph (B), by inserting after 
                ``2009.'' the following:
                          ``(v) $13,500,000 for fiscal year 2010.
                          ``(vi) $3,375,000 for the period beginning 
                      October 1, 2010, and ending December 31, 2010.'';
                    (C) in subparagraph (C), by inserting ``, and during 
                the period beginning October 1, 2010, and ending 
                December 31, 2010,'' after ``fiscal year'';
                    (D) in subparagraph (D), by inserting ``, and not 
                less than $8,750,000 shall be available for the period 
                beginning October 1, 2010, and ending December 31, 
                2010,'' after ``year''; and
                    (E) in subparagraph (E), by inserting ``, and 
                $750,000 shall be available for the period beginning 
                October 1, 2010, and ending December 31, 2010,'' after 
                ``year''.
SEC. 434. APPORTIONMENT OF FORMULA GRANTS FOR OTHER THAN URBANIZED 
                        AREAS.

    Section 5311(c)(1) of title 49, United States Code, is amended by 
adding at the end the following:
                    ``(E) $15,000,000 for fiscal year 2010.
                    ``(F) $3,750,000 for the period beginning October 1, 
                2010, and ending December 31, 2010.''.
SEC. 435. APPORTIONMENT BASED ON FIXED GUIDEWAY FACTORS.

    Section 5337 of title 49, United States Code, is amended--
            (1) in subsection (a), in the matter preceding paragraph 
        (1), by striking ``2009'' and inserting ``2010''; and
            (2) by adding at the end the following:

    ``(g) Special Rule for October 1, 2010, Through December 31, 2010.--
The Secretary shall apportion amounts made available for fixed guideway 
modernization under section 5309 for the period beginning October 1, 
2010, and ending December 31, 2010, in accordance with subsection (a), 
except that the Secretary shall apportion 25 percent of each dollar 
amount specified in subsection (a).''.

[[Page 124 STAT. 90]]

SEC. 436. AUTHORIZATIONS FOR PUBLIC TRANSPORTATION.

    (a) Formula and Bus Grants.--Section 5338(b) of title 49, United 
States Code, is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (C), by striking ``and'' at the 
                end;
                    (B) in subparagraph (D), by striking the period at 
                the end and inserting a semicolon; and
                    (C) by adding at the end the following:
                    ``(E) $8,360,565,000 for fiscal year 2010; and
                    ``(F) $2,090,141,250 for the period beginning 
                October 1, 2010, and ending December 31, 2010.''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (A), by striking ``and 
                $113,500,000 for fiscal year 2009'' and inserting 
                ``$113,500,000 for each of fiscal years 2009 and 2010, 
                and $28,375,000 for the period beginning October 1, 
                2010, and ending December 31, 2010,'';
                    (B) in subparagraph (B), by striking ``and 
                $4,160,365,000 for fiscal year 2009'' and inserting 
                ``$4,160,365,000 for each of fiscal years 2009 and 2010, 
                and $1,040,091,250 for the period beginning October 1, 
                2010, and ending December 31, 2010,'';
                    (C) in subparagraph (C), by striking ``and 
                $51,500,000 for fiscal year 2009'' and inserting 
                ``$51,500,000 for each of fiscal years 2009 and 2010, 
                and $12,875,000 for the period beginning October 1, 
                2010, and ending December 31, 2010,'';
                    (D) in subparagraph (D), by striking ``and 
                $1,666,500,000 for fiscal year 2009'' and inserting 
                ``$1,666,500,000 for each of fiscal years 2009 and 2010, 
                and $416,625,000 for the period beginning October 1, 
                2010 and ending December 31, 2010,'';
                    (E) in subparagraph (E), by striking ``and 
                $984,000,000 for fiscal year 2009'' and inserting 
                ``$984,000,000 for each of fiscal years 2009 and 2010, 
                and $246,000,000 for the period beginning October 1, 
                2010 and ending December 31, 2010,'';
                    (F) in subparagraph (F), by striking ``and 
                $133,500,000 for fiscal year 2009'' and inserting 
                ``$133,500,000 for each of fiscal years 2009 and 2010, 
                and $33,375,000 for the period beginning October 1, 2010 
                and ending December 31, 2010,'';
                    (G) in subparagraph (G), by striking ``and 
                $465,000,000 for fiscal year 2009'' and inserting 
                ``$465,000,000 for each of fiscal years 2009 and 2010, 
                and $116,250,000 for the period beginning October 1, 
                2010 and ending December 31, 2010,'';
                    (H) in subparagraph (H), by striking ``and 
                $164,500,000 for fiscal year 2009'' and inserting 
                ``$164,500,000 for each of fiscal years 2009 and 2010, 
                and $41,125,000 for the period beginning October 1, 2010 
                and ending December 31, 2010,'';
                    (I) in subparagraph (I), by striking ``and 
                $92,500,000 for fiscal year 2009'' and inserting 
                ``$92,500,000 for each of fiscal years 2009 and 2010, 
                and $23,125,000 for the period beginning October 1, 2010 
                and ending December 31, 2010,'';

[[Page 124 STAT. 91]]

                    (J) in subparagraph (J), by striking ``and 
                $26,900,000 for fiscal year 2009'' and inserting 
                ``$26,900,000 for each of fiscal years 2009 and 2010, 
                and $6,725,000 for the period beginning October 1, 2010 
                and ending December 31, 2010,'';
                    (K) in subparagraph (K), by striking ``and 
                $3,500,000 for fiscal year 2009'' and inserting 
                ``$3,500,000 for each of fiscal years 2009 and 2010, and 
                $875,000 for the period beginning October 1, 2010 and 
                ending December 31, 2010,'';
                    (L) in subparagraph (L), by striking ``and 
                $25,000,000 for fiscal year 2009'' and inserting 
                ``$25,000,000 for each of fiscal years 2009 and 2010, 
                and $6,250,000 for the period beginning October 1, 2010 
                and ending December 31, 2010,'';
                    (M) in subparagraph (M), by striking ``and 
                $465,000,000 for fiscal year 2009'' and inserting 
                ``$465,000,000 for each of fiscal years 2009 and 2010, 
                and $116,250,000 for the period beginning October 1, 
                2010 and ending December 31, 2010,''; and
                    (N) in subparagraph (N), by striking ``and 
                $8,800,000 for fiscal year 2009'' and inserting 
                ``$8,800,000 for each of fiscal years 2009 and 2010, and 
                $2,200,000 for the period beginning October 1, 2010 and 
                ending December 31, 2010,''.

    (b) Capital Investment Grants.--Section 5338(c) of title 49, United 
States Code, is amended--
            (1) in paragraph (3), by striking ``and'' at the end;
            (2) in paragraph (4), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(5) $2,000,000,000 for fiscal year 2010; and
            ``(6) $500,000,000 for the period of October 1, 2010 through 
        December 31, 2010.''.

    (c) Research and University Research Centers.--Section 5338(d) of 
title 49, United States Code, is amended--
            (1) in paragraph (1), in the matter preceding subparagraph 
        (A), by striking ``and $69,750,000 for fiscal year 2009'' and 
        inserting ``$69,750,000 for each of fiscal years 2009 and 2010, 
        and $17,437,500 for the period beginning October 1, 2010, and 
        ending December 31, 2010''; and
            (2) by adding at the end the following:
            ``(3) Additional <<NOTE: Allocations.>> authorizations.--
                    ``(A) In general.--
                          ``(i) Fiscal year 2010.--Of amounts authorized 
                      to be appropriated for fiscal year 2010 under 
                      paragraph (1), the Secretary shall allocate for 
                      each of the activities and projects described in 
                      subparagraphs (A) through (F) of paragraph (1) an 
                      amount equal to the amount allocated for fiscal 
                      year 2009 under each such subparagraph.
                          ``(ii) October 1, 2010 through december 31, 
                      2010.--Of amounts authorized to be appropriated 
                      for the period beginning October 1, 2010, through 
                      December 31, 2010, under paragraph (1), the 
                      Secretary shall allocate for each of the 
                      activities and projects described in subparagraphs 
                      (A) through (F) of paragraph (1) an amount equal 
                      to 25 percent of the amount allocated for fiscal 
                      year 2009 under each such subparagraph.
                    ``(B) University centers program.--

[[Page 124 STAT. 92]]

                          ``(i) Fiscal year 2010.--Of the amounts 
                      allocated under subparagraph (A)(i) for the 
                      university centers program under section 5506 for 
                      fiscal year 2010, the Secretary shall allocate for 
                      each program described in clauses (i) through 
                      (iii) and (v) through (viii) of paragraph (2)(A) 
                      an amount equal to the amount allocated for fiscal 
                      year 2009 under each such clause.
                          ``(ii) October 1, 2010 through december 31, 
                      2010.--Of the amounts allocated under subparagraph 
                      (A)(i) for the university centers program under 
                      section 5506 for the period beginning October 1, 
                      2010, and ending December 31, 2010, the Secretary 
                      shall allocate for each program described in 
                      clauses (i) through (iii) and (v) through (viii) 
                      of paragraph (2)(A) an amount equal to 25 percent 
                      of the amount allocated for fiscal year 2009 under 
                      each such clause.
                          ``(iii) Funding.--
                      If <<NOTE: Determination.>> the Secretary 
                      determines that a project or activity described in 
                      paragraph (2) received sufficient funds in fiscal 
                      year 2009, or a previous fiscal year, to carry out 
                      the purpose for which the project or activity was 
                      authorized, the Secretary may not allocate any 
                      amounts under clause (i) or (ii) for the project 
                      or activity for fiscal year 2010, or any 
                      subsequent fiscal year.''.

    (d) Administration.--Section 5338(e) of title 49, United States 
Code, is amended--
            (1) in paragraph (3), by striking ``and'' at the end;
            (2) in paragraph (4), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(5) $98,911,000 for fiscal year 2010; and
            ``(6) $24,727,750 for the period beginning October 1, 2010, 
        and ending December 31, 2010.''.
SEC. 437. AMENDMENTS TO SAFETEA-LU.

    (a) Contracted Paratransit Pilot.--Section 3009(i)(1) of the 
SAFETEA-LU (Public Law 109-59; 119 Stat. 1572) is amended by striking 
``2009'' and inserting ``2010, and for the period beginning October 1, 
2010, and ending December 31, 2010''.
    (b) Public-private Partnership Pilot Program.--Section 3011 of the 
SAFETEA-LU (49 U.S.C. 5309 note) is amended--
            (1) in subsection (c)(5), by striking ``2009'' and inserting 
        ``2010 and the period beginning October 1, 2010, and ending 
        December 31, 2010''; and
            (2) in subsection (d), by striking ``2009'' and inserting 
        ``2010, and for the period beginning October 1, 2010, and ending 
        December 31, 2010''.

    (c) Elderly Individuals and Individuals With Disabilities Pilot 
Program.--Section 3012(b)(8) of the SAFETEA-LU (49 U.S.C. 5310 note) is 
amended by striking ``September 30, 2009'' and inserting ``December 31, 
2010''.
    (d) Obligation Ceiling.--Section 3040 of the SAFETEA-LU (Public Law 
109-59; 119 Stat. 1639) is amended--
            (1) in paragraph (4), by striking ``and'' at the end;
            (2) in paragraph (5), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:

[[Page 124 STAT. 93]]

            ``(6) $10,507,752,000 for fiscal year 2010, of which not 
        more than $8,360,565,000 shall be from the Mass Transit Account; 
        and
            ``(7) $2,626,938,000 for the period beginning October 1, 
        2010, and ending December 31, 2010, of which not more than 
        $2,090,141,250 shall be from the Mass Transit Account.''.

    (e) Project Authorizations for New Fixed Guideway Capital 
Projects.--Section 3043 of the SAFETEA-LU (Public Law 109-59; 119 Stat. 
1640) is amended--
            (1) in subsection (b), in the matter preceding paragraph 
        (1), by striking ``2009'' and inserting ``2010, and for the 
        period beginning October 1, 2010, and ending December 31, 
        2010,''; and
            (2) in subsection (c), in the matter preceding paragraph 
        (1), by striking ``2009'' and inserting ``2010, and for the 
        period beginning October 1, 2010, and ending December 31, 
        2010,''.

    (f) Allocations for National Research and Technology Programs.--
Section 3046 of the SAFETEA-LU (49 U.S.C. 5338 note) is amended--
            (1) in subsection (b), by inserting ``or period'' after 
        ``fiscal year''; and
            (2) by adding at the end the following:

    ``(c) Additional Appropriations.--The Secretary shall allocate 
amounts appropriated pursuant to section 5338(d) of title 49, United 
States Code, for national research and technology programs under 
sections 5312, 5314, and 5322 of such title--
            ``(1) for fiscal year 2010, in amounts equal to the amounts 
        allocated for fiscal year 2009 under each of paragraphs (2), 
        (3), (5), (6), and (8) through (25) of subsection (a); and
            ``(2) for the period beginning October 1, 2010, and ending 
        December 31, 2010, in amounts equal to 25 percent of the amounts 
        allocated for fiscal year 2009 under each of paragraphs (2), 
        (3), (5), (6), and (8) through (25) of subsection (a).

    ``(d) Funding.--If <<NOTE: Determination.>> the Secretary determines 
that a project or activity described in subsection (a) received 
sufficient funds in fiscal year 2009, or a previous fiscal year, to 
carry out the purpose for which the project or activity was authorized, 
the Secretary may not allocate any amounts under subsection (c) for the 
project or activity for fiscal year 2010, or any subsequent fiscal 
year.''.

                     Subtitle D--Revenue Provisions

SEC. 441. REPEAL OF PROVISION PROHIBITING THE CREDITING OF 
                        INTEREST TO THE HIGHWAY TRUST FUND.

    (a) In General.--Paragraph (1) of section 9503(f) <<NOTE: 26 USC 
9503.>> is amended by striking subparagraph (B).

    (b) Conforming Amendments.--Such paragraph, as amended by paragraph 
(1), is further amended--
            (1) by striking ``, and'' at the end of subparagraph (A) and 
        inserting a period; and
            (2) by striking ``1998'' in the matter preceding 
        subparagraph (A) and all that follows through ``the opening 
        balance'' and inserting ``1998, the opening balance''.

    (c) Effective <<NOTE: 26 USC 9503 note.>> Date.--The amendments made 
by this section shall take effect on the date of the enactment of this 
title.

[[Page 124 STAT. 94]]

SEC. 442. RESTORATION OF CERTAIN FOREGONE INTEREST TO HIGHWAY 
                        TRUST FUND.

    (a) In General.--Paragraph (2) of section 9503(f) <<NOTE: 26 USC 
9503.>> is amended to read as follows:
            ``(2) Restoration of foregone interest.--Out of money in the 
        Treasury not otherwise appropriated, there is hereby 
        appropriated--
                    ``(A) $14,700,000,000 to the Highway Account (as 
                defined in subsection (e)(5)(B)) in the Highway Trust 
                Fund; and
                    ``(B) $4,800,000,000 to the Mass Transit Account in 
                the Highway Trust Fund.''.

    (b) Conforming Amendment.--Paragraph (1) of section 9503(e) is 
amended by striking ``this subsection'' and inserting ``this section''.
    (c) Effective <<NOTE: 26 USC 9503 note.>> Date.--The amendments made 
by this section shall take effect on the date of the enactment of this 
Act.
SEC. 443. TREATMENT OF CERTAIN AMOUNTS APPROPRIATED TO HIGHWAY 
                        TRUST FUND.

    (a) In General.--Section 9503(f), as amended by this Act, is amended 
by adding at the end the following new paragraph:
            ``(4) Treatment of appropriated amounts.--Any amount 
        appropriated under this subsection to the Highway Trust Fund 
        shall remain available without fiscal year limitation.''.

    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.
SEC. 444. TERMINATION OF TRANSFERS FROM HIGHWAY TRUST FUND FOR 
                        CERTAIN REPAYMENTS AND CREDITS.

    (a) In General.--Section 9503(c) is amended by striking paragraph 
(2) and by redesignating paragraphs (3), (4), (5), and (6) as paragraphs 
(2), (3), (4), and (5), respectively.
    (b) Conforming Amendments.--
            (1) Section 9502(a) is amended by striking ``section 
        9503(c)(7)'' and inserting ``section 9503(c)(5)''.
            (2) Section 9503(b)(4)(D) is amended by striking ``paragraph 
        (4)(D) or (5)(B)'' and inserting ``paragraph (3)(D) or (4)(B)''.
            (3) Paragraph (2) of section 9503(c), as redesignated by 
        subsection (a), is amended by adding at the end the following 
        new sentence: ``The amounts payable from the Highway Trust Fund 
        under the preceding sentence shall be determined by taking into 
        account only the portion of the taxes which are deposited into 
        the Highway Trust Fund.''.
            (4) Section 9503(e)(5)(A) is amended by striking ``(2), (3), 
        and (4)'' and inserting ``(2) and (3)''.
            (5) Section 9504(a) is amended by striking ``section 
        9503(c)(4), section 9503(c)(5)'' and inserting ``section 
        9503(c)(3), section 9503(c)(4)''.
            (6) Section 9504(b)(2) is amended by striking ``section 
        9503(c)(5)'' and inserting ``section 9503(c)(4)''.
            (7) Section 9504(e) is amended by striking ``section 
        9503(c)(4)'' and inserting section ``9503(c)(3)''.

    (c) Effective <<NOTE: Applicability. 26 USC 9502 note.>> Date.--The 
amendment made by this section shall apply to transfers relating to 
amounts paid and credits allowed after the date of the enactment of this 
Act.
SEC. 445. EXTENSION OF AUTHORITY FOR EXPENDITURES.

    (a) Highways Trust Fund.--

[[Page 124 STAT. 95]]

            (1) Highway account.--Paragraph (1) <<NOTE: 26 USC 
        9503.>> of section 9503(c) is amended--
                    (A) by striking ``September 30, 2009 (October 1, 
                2009'' and inserting ``December 31, 2010 (January 1, 
                2011''; and
                    (B) by striking ``under'' and all that follows and 
                inserting ``under the Surface Transportation Extension 
                Act of 2010 or any other provision of law which was 
                referred to in this paragraph before the date of the 
                enactment of such Act (as such Act and provisions of law 
                are in effect on the date of the enactment of such 
                Act).''.
            (2) Mass transit account.--Paragraph (3) of section 9503(e) 
        is amended--
                    (A) by striking ``October 1, 2009'' and inserting 
                ``January 1, 2011''; and
                    (B) by striking ``in accordance with'' and all that 
                follows and inserting ``in accordance with the Surface 
                Transportation Extension Act of 2010 or any other 
                provision of law which was referred to in this paragraph 
                before the date of the enactment of such Act (as such 
                Act and provisions of law are in effect on the date of 
                the enactment of such Act).''.
            (3) Exception to limitation on transfers.--Subparagraph (B) 
        of section 9503(b)(6) is amended by striking ``September 30, 
        2009 (October 1, 2009'' and inserting ``December 31, 2010 
        (January 1, 2011''.

    (b) Sport Fish Restoration and Boating Trust Fund.--
            (1) In general.--Paragraph (2) of section 9504(b) is 
        amended--
                    (A) by striking ``(as in effect'' in subparagraph 
                (A) and all that follows in such subparagraph and 
                inserting ``(as in effect on the date of the enactment 
                of the Surface Transportation Extension Act of 2010),'',
                    (B) by striking ``(as in effect'' in subparagraph 
                (B) and all that follows in such subparagraph and 
                inserting ``(as in effect on the date of the enactment 
                of the Surface Transportation Extension Act of 2010), 
                and'', and
                    (C) by striking ``(as in effect'' in subparagraph 
                (C) and all that follows in such subparagraph and 
                inserting ``(as in effect on the date of the enactment 
                of the Surface Transportation Extension Act of 2010).''.
            (2) Exception to limitation on transfers.--Paragraph (2) of 
        section 9504(d) is amended by striking ``October 1, 2009'' and 
        inserting ``January 1, 2011''.

    (c) Effective <<NOTE: 26 USC 9503 note.>> Date.--The amendments made 
by this section shall take effect on September 30, 2009.
SEC. 446. LEVEL OF OBLIGATION LIMITATIONS.

    (a) Highway Category.--Section 8003(a) of the SAFETEA-LU (2 U.S.C. 
901 note; 119 Stat. 1917) is amended--
            (1) in paragraph (4), by striking ``and'' at the end;
            (2) in paragraph (5), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(6) for the period beginning on October 1, 2009, and 
        ending on September 30, 2010, $42,469,970,178.
            ``(7) for the period beginning on October 1, 2010, and 
        ending on December 31, 2010, $10,617,492,545.''.

[[Page 124 STAT. 96]]

    (b) Mass Transit Category.--Section 8003(b) of the SAFETEA-LU (2 
U.S.C. 901 note; 119 Stat. 1917) is amended--
            (1) in paragraph (4), by striking ``and'' at the end;
            (2) in paragraph (5), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(6) for the period beginning on October 1, 2009, and 
        ending on December 31, 2010, $10,338,065,000.
            ``(7) for the period beginning on October 1, 2010, and 
        ending on December 31, 2010, $2,584,516,250.''.

    (c) Treatment of Funds.--No adjustment pursuant to section 110 of 
title 23, United States Code, shall be made for fiscal year 2010 or 
fiscal year 2011.

             Subtitle E--Disadvantaged Business Enterprises

SEC. 451. <<NOTE: 23 USC 101 note.>> DISADVANTAGED BUSINESS 
                        ENTERPRISES.

    (a) Definitions.--In this section, the following definitions apply:
            (1) Small business concern.--The term ``small business 
        concern'' has the meaning that term has under section 3 of the 
        Small Business Act (15 U.S.C. 632), except that the term shall 
        not include any concern or group of concerns controlled by the 
        same socially and economically disadvantaged individual or 
        individuals which has average annual gross receipts over the 
        preceding 3 fiscal years in excess of $22,410,000, as adjusted 
        annually by the Secretary of Transportation for inflation.
            (2) Socially and economically disadvantaged individuals.--
        The term ``socially and economically disadvantaged individuals'' 
        has the meaning that term has under section 8(d) of the Small 
        Business Act (15 U.S.C. 637(d)) and relevant subcontracting 
        regulations issued pursuant to that Act, except that women shall 
        be presumed to be socially and economically disadvantaged 
        individuals for purposes of this section.

    (b) General Rule.--Except to the extent that the Secretary of 
Transportation determines otherwise, not less than 10 percent of the 
amounts made available for any program under titles I, III, and V of 
SAFETEA-LU (Public Law 109-59), subtitles A and C of this title, and 
section 403 of title 23, United States Code, shall be expended through 
small business concerns owned and controlled by socially and 
economically disadvantaged individuals.
    (c) Annual <<NOTE: States.>> Listing of Disadvantaged Business 
Enterprises.--Each State shall annually
            (1) survey and compile a list of the small business concerns 
        referred to in subsection (a) and the location of the concerns 
        in the State; and
            (2) notify <<NOTE: Notification.>> the Secretary of 
        Transportation, in writing, of the percentage of the concerns 
        that are controlled by women, by socially and economically 
        disadvantaged individuals (other than women), and by individuals 
        who are women and are otherwise socially and economically 
        disadvantaged individuals.

    (d) Uniform <<NOTE: Criteria.>> Certification.--The Secretary of 
Transportation shall establish minimum uniform criteria for State 
governments to use in certifying whether a concern qualifies for 
purposes of this section. The minimum uniform criteria shall include, 
but not

[[Page 124 STAT. 97]]

be limited to, on-site visits, personal interviews, licenses, analysis 
of stock ownership, listing of equipment, analysis of bonding capacity, 
listing of work completed, resume of principal owners, financial 
capacity, and type of work preferred.

    (e) Compliance With Court Orders.--Nothing in this section limits 
the eligibility of an entity or person to receive funds made available 
under titles I, III, and V of SAFETEA-LU (Public Law 109-59), subtitles 
A and C of this title, and section 403 of title 23, United States Code, 
if the entity or person is prevented, in whole or in part, from 
complying with subsection (b) because a Federal court issues a final 
order in which the court finds that the requirement of subsection (b), 
or the program established under subsection (b), is unconstitutional.

                       TITLE V--OFFSET PROVISIONS

               Subtitle A--Foreign Account Tax Compliance

            PART I--INCREASED DISCLOSURE OF BENEFICIAL OWNERS

SEC. 501. REPORTING ON CERTAIN FOREIGN ACCOUNTS.

    (a) In General.--The Internal Revenue Code of 1986 is amended by 
inserting after chapter 3 the following new chapter:

   ``CHAPTER 4--TAXES TO ENFORCE REPORTING ON CERTAIN FOREIGN ACCOUNTS

``Sec. 1471. Withholdable payments to foreign financial institutions.
``Sec. 1472. Withholdable payments to other foreign entities.
``Sec. 1473. Definitions.
``Sec. 1474. Special rules.

``SEC. 1471. WITHHOLDABLE PAYMENTS TO FOREIGN FINANCIAL 
                          INSTITUTIONS.

    ``(a) In General.--In the case of any withholdable payment to a 
foreign financial institution which does not meet the requirements of 
subsection (b), the withholding agent with respect to such payment shall 
deduct and withhold from such payment a tax equal to 30 percent of the 
amount of such payment.
    ``(b) Reporting Requirements, etc.--
            ``(1) In general.--The requirements of this subsection are 
        met with respect to any foreign financial institution if an 
        agreement is in effect between such institution and the 
        Secretary under which such institution agrees--
                    ``(A) to obtain such information regarding each 
                holder of each account maintained by such institution as 
                is necessary to determine which (if any) of such 
                accounts are United States accounts,
                    ``(B) to comply with such verification and due 
                diligence procedures as the Secretary may require with 
                respect to the identification of United States accounts,
                    ``(C) in the case of any United States account 
                maintained by such institution, to report on an annual 
                basis

[[Page 124 STAT. 98]]

                the information described in subsection (c) with respect 
                to such account,
                    ``(D) to deduct and withhold a tax equal to 30 
                percent of--
                          ``(i) any passthru payment which is made by 
                      such institution to a recalcitrant account holder 
                      or another foreign financial institution which 
                      does not meet the requirements of this subsection, 
                      and
                          ``(ii) in the case of any passthru payment 
                      which is made by such institution to a foreign 
                      financial institution which has in effect an 
                      election under paragraph (3) with respect to such 
                      payment, so much of such payment as is allocable 
                      to accounts held by recalcitrant account holders 
                      or foreign financial institutions which do not 
                      meet the requirements of this subsection,
                    ``(E) to comply with requests by the Secretary for 
                additional information with respect to any United States 
                account maintained by such institution, and
                    ``(F) in any case in which any foreign law would 
                (but for a waiver described in clause (i)) prevent the 
                reporting of any information referred to in this 
                subsection or subsection (c) with respect to any United 
                States account maintained by such institution--
                          ``(i) to attempt to obtain a valid and 
                      effective waiver of such law from each holder of 
                      such account, and
                          ``(ii) if a waiver described in clause (i) is 
                      not obtained from each such holder within a 
                      reasonable period of time, to close such account.
        Any agreement entered into under this subsection may be 
        terminated by the Secretary upon a determination by the 
        Secretary that the foreign financial institution is out of 
        compliance with such agreement.
            ``(2) Financial institutions deemed to meet requirements in 
        certain cases.--A foreign financial institution may be treated 
        by the Secretary as meeting the requirements of this subsection 
        if--
                    ``(A) such institution--
                          ``(i) complies with such procedures as the 
                      Secretary may prescribe to ensure that such 
                      institution does not maintain United States 
                      accounts, and
                          ``(ii) meets such other requirements as the 
                      Secretary may prescribe with respect to accounts 
                      of other foreign financial institutions maintained 
                      by such institution, or
                    ``(B) such institution is a member of a class of 
                institutions with respect to which the Secretary has 
                determined that the application of this section is not 
                necessary to carry out the purposes of this section.
            ``(3) Election to be withheld upon rather than withhold on 
        payments to recalcitrant account holders and nonparticipating 
        foreign financial institutions.--In the case of a foreign 
        financial institution which meets the requirements of this 
        subsection and such other requirements as the Secretary may 
        provide and which elects the application of this paragraph--

[[Page 124 STAT. 99]]

                    ``(A) the requirements of paragraph (1)(D) shall not 
                apply,
                    ``(B) the <<NOTE: Applicability.>> withholding tax 
                imposed under subsection (a) shall apply with respect to 
                any withholdable payment to such institution to the 
                extent such payment is allocable to accounts held by 
                recalcitrant account holders or foreign financial 
                institutions which do not meet the requirements of this 
                subsection, and
                    ``(C) the agreement described in paragraph (1) 
                shall--
                          ``(i) require such institution to notify the 
                      withholding agent with respect to each such 
                      payment of the institution's election under this 
                      paragraph and such other information as may be 
                      necessary for the withholding agent to determine 
                      the appropriate amount to deduct and withhold from 
                      such payment, and
                          ``(ii) include a waiver of any right under any 
                      treaty of the United States with respect to any 
                      amount deducted and withheld pursuant to an 
                      election under this paragraph.
        To the extent provided by the Secretary, the election under this 
        paragraph may be made with respect to certain classes or types 
        of accounts of the foreign financial institution.

    ``(c) Information Required To Be Reported on United States 
Accounts.--
            ``(1) In general.--The agreement described in subsection (b) 
        shall require the foreign financial institution to report the 
        following with respect to each United States account maintained 
        by such institution:
                    ``(A) The name, address, and TIN of each account 
                holder which is a specified United States person and, in 
                the case of any account holder which is a United States 
                owned foreign entity, the name, address, and TIN of each 
                substantial United States owner of such entity.
                    ``(B) The account number.
                    ``(C) The account balance or value (determined at 
                such time and in such manner as the Secretary may 
                provide).
                    ``(D) Except to the extent provided by the 
                Secretary, the gross receipts and gross withdrawals or 
                payments from the account (determined for such period 
                and in such manner as the Secretary may provide).
            ``(2) Election to be subject to same reporting as united 
        states financial institutions.--In the case of a foreign 
        financial institution which elects the application of this 
        paragraph--
                    ``(A) subparagraphs (C) and (D) of paragraph (1) 
                shall not apply, and
                    ``(B) the agreement described in subsection (b) 
                shall require such foreign financial institution to 
                report such information with respect to each United 
                States account maintained by such institution as such 
                institution would be required to report under sections 
                6041, 6042, 6045, and 6049 if--
                          ``(i) such institution were a United States 
                      person, and

[[Page 124 STAT. 100]]

                          ``(ii) each holder of such account which is a 
                      specified United States person or United States 
                      owned foreign entity were a natural person and 
                      citizen of the United States.
                An election under this paragraph shall be made at such 
                time, in such manner, and subject to such conditions as 
                the Secretary may provide.
            ``(3) Separate requirements for qualified intermediaries.--
        In the case of a foreign financial institution which is treated 
        as a qualified intermediary by the Secretary for purposes of 
        section 1441 and the regulations issued thereunder, the 
        requirements of this section shall be in addition to any 
        reporting or other requirements imposed by the Secretary for 
        purposes of such treatment.

    ``(d) Definitions.--For purposes of this section--
            ``(1) United states account.--
                    ``(A) In general.--The term `United States account' 
                means any financial account which is held by one or more 
                specified United States persons or United States owned 
                foreign entities.
                    ``(B) Exception for certain accounts held by 
                individuals.--Unless the foreign financial institution 
                elects to not have this subparagraph apply, such term 
                shall not include any depository account maintained by 
                such financial institution if--
                          ``(i) each holder of such account is a natural 
                      person, and
                          ``(ii) with respect to each holder of such 
                      account, the aggregate value of all depository 
                      accounts held (in whole or in part) by such holder 
                      and maintained by the same financial institution 
                      which maintains such account does not exceed 
                      $50,000.
                To the extent provided by the Secretary, financial 
                institutions which are members of the same expanded 
                affiliated group shall be treated for purposes of clause 
                (ii) as a single financial institution.
                    ``(C) Elimination of duplicative reporting 
                requirements.--Such term shall not include any financial 
                account in a foreign financial institution if--
                          ``(i) such account is held by another 
                      financial institution which meets the requirements 
                      of subsection (b), or
                          ``(ii) the holder of such account is otherwise 
                      subject to information reporting requirements 
                      which the Secretary determines would make the 
                      reporting required by this section with respect to 
                      United States accounts duplicative.
            ``(2) Financial account.--Except as otherwise provided by 
        the Secretary, the term `financial account' means, with respect 
        to any financial institution--
                    ``(A) any depository account maintained by such 
                financial institution,
                    ``(B) any custodial account maintained by such 
                financial institution, and
                    ``(C) any equity or debt interest in such financial 
                institution (other than interests which are regularly 
                traded on an established securities market).

[[Page 124 STAT. 101]]

        Any equity or debt interest which constitutes a financial 
        account under subparagraph (C) with respect to any financial 
        institution shall be treated for purposes of this section as 
        maintained by such financial institution.
            ``(3) United states owned foreign entity.--The term `United 
        States owned foreign entity' means any foreign entity which has 
        one or more substantial United States owners.
            ``(4) Foreign financial institution.--The term `foreign 
        financial institution' means any financial institution which is 
        a foreign entity. Except as otherwise provided by the Secretary, 
        such term shall not include a financial institution which is 
        organized under the laws of any possession of the United States.
            ``(5) Financial institution.--Except as otherwise provided 
        by the Secretary, the term `financial institution' means any 
        entity that--
                    ``(A) accepts deposits in the ordinary course of a 
                banking or similar business,
                    ``(B) as a substantial portion of its business, 
                holds financial assets for the account of others, or
                    ``(C) is engaged (or holding itself out as being 
                engaged) primarily in the business of investing, 
                reinvesting, or trading in securities (as defined in 
                section 475(c)(2) without regard to the last sentence 
                thereof), partnership interests, commodities (as defined 
                in section 475(e)(2)), or any interest (including a 
                futures or forward contract or option) in such 
                securities, partnership interests, or commodities.
            ``(6) Recalcitrant account holder.--The term `recalcitrant 
        account holder' means any account holder which--
                    ``(A) fails to comply with reasonable requests for 
                the information referred to in subsection (b)(1)(A) or 
                (c)(1)(A), or
                    ``(B) fails to provide a waiver described in 
                subsection (b)(1)(F) upon request.
            ``(7) Passthru payment.--The term `passthru payment' means 
        any withholdable payment or other payment to the extent 
        attributable to a withholdable payment.

    ``(e) Affiliated Groups.--
            ``(1) In general.--The <<NOTE: Applicability.>> requirements 
        of subsections (b) and (c)(1) shall apply--
                    ``(A) with respect to United States accounts 
                maintained by the foreign financial institution, and
                    ``(B) except as otherwise provided by the Secretary, 
                with respect to United States accounts maintained by 
                each other foreign financial institution (other than any 
                foreign financial institution which meets the 
                requirements of subsection (b)) which is a member of the 
                same expanded affiliated group as such foreign financial 
                institution.
            ``(2) Expanded affiliated group.--For purposes of this 
        section, the term `expanded affiliated group' means an 
        affiliated group as defined in section 1504(a), determined--
                    ``(A) by substituting `more than 50 percent' for `at 
                least 80 percent' each place it appears, and
                    ``(B) without regard to paragraphs (2) and (3) of 
                section 1504(b).
        A partnership or any other entity (other than a corporation) 
        shall be treated as a member of an expanded affiliated group if 
        such entity is controlled (within the meaning of section

[[Page 124 STAT. 102]]

        954(d)(3)) by members of such group (including any entity 
        treated as a member of such group by reason of this sentence).

    ``(f) Exception for Certain Payments.--Subsection (a) shall not 
apply to any payment to the extent that the beneficial owner of such 
payment is--
            ``(1) any foreign government, any political subdivision of a 
        foreign government, or any wholly owned agency or 
        instrumentality of any one or more of the foregoing,
            ``(2) any international organization or any wholly owned 
        agency or instrumentality thereof,
            ``(3) any foreign central bank of issue, or
            ``(4) any other class of persons identified by the Secretary 
        for purposes of this subsection as posing a low risk of tax 
        evasion.
``SEC. 1472. WITHHOLDABLE PAYMENTS TO OTHER FOREIGN ENTITIES.

    ``(a) In General.--In the case of any withholdable payment to a non-
financial foreign entity, if--
            ``(1) the beneficial owner of such payment is such entity or 
        any other non-financial foreign entity, and
            ``(2) the requirements of subsection (b) are not met with 
        respect to such beneficial owner,

then the withholding agent with respect to such payment shall deduct and 
withhold from such payment a tax equal to 30 percent of the amount of 
such payment.
    ``(b) Requirements for Waiver of Withholding.--The requirements of 
this subsection are met with respect to the beneficial owner of a 
payment if--
            ``(1) such beneficial owner or the payee provides the 
        withholding agent with either--
                    ``(A) a certification that such beneficial owner 
                does not have any substantial United States owners, or
                    ``(B) the name, address, and TIN of each substantial 
                United States owner of such beneficial owner,
            ``(2) the withholding agent does not know, or have reason to 
        know, that any information provided under paragraph (1) is 
        incorrect, and
            ``(3) the withholding agent reports the information provided 
        under paragraph (1)(B) to the Secretary in such manner as the 
        Secretary may provide.

    ``(c) Exceptions.--Subsection (a) shall not apply to--
            ``(1) except as otherwise provided by the Secretary, any 
        payment beneficially owned by--
                    ``(A) any corporation the stock of which is 
                regularly traded on an established securities market,
                    ``(B) any corporation which is a member of the same 
                expanded affiliated group (as defined in section 
                1471(e)(2) without regard to the last sentence thereof) 
                as a corporation described in subparagraph (A),
                    ``(C) any entity which is organized under the laws 
                of a possession of the United States and which is wholly 
                owned by one or more bona fide residents (as defined in 
                section 937(a)) of such possession,
                    ``(D) any foreign government, any political 
                subdivision of a foreign government, or any wholly owned 
                agency or instrumentality of any one or more of the 
                foregoing,

[[Page 124 STAT. 103]]

                    ``(E) any international organization or any wholly 
                owned agency or instrumentality thereof,
                    ``(F) any foreign central bank of issue, or
                    ``(G) any other class of persons identified by the 
                Secretary for purposes of this subsection, and
            ``(2) any class of payments identified by the Secretary for 
        purposes of this subsection as posing a low risk of tax evasion.

    ``(d) Non-Financial Foreign Entity.--For purposes of this section, 
the term `non-financial foreign entity' means any foreign entity which 
is not a financial institution (as defined in section 1471(d)(5)).
``SEC. 1473. DEFINITIONS.

    ``For purposes of this chapter--
            ``(1) Withholdable payment.--Except as otherwise provided by 
        the Secretary--
                    ``(A) In general.--The term `withholdable payment' 
                means--
                          ``(i) any payment of interest (including any 
                      original issue discount), dividends, rents, 
                      salaries, wages, premiums, annuities, 
                      compensations, remunerations, emoluments, and 
                      other fixed or determinable annual or periodical 
                      gains, profits, and income, if such payment is 
                      from sources within the United States, and
                          ``(ii) any gross proceeds from the sale or 
                      other disposition of any property of a type which 
                      can produce interest or dividends from sources 
                      within the United States.
                    ``(B) Exception for income connected with united 
                states business.--Such term shall not include any item 
                of income which is taken into account under section 
                871(b)(1) or 882(a)(1) for the taxable year.
                    ``(C) Special rule for sourcing interest paid by 
                foreign branches of domestic financial institutions.--
                Subparagraph (B) of section 861(a)(1) shall not apply.
            ``(2) Substantial united states owner.--
                    ``(A) In general.--The term `substantial United 
                States owner' means--
                          ``(i) with respect to any corporation, any 
                      specified United States person which owns, 
                      directly or indirectly, more than 10 percent of 
                      the stock of such corporation (by vote or value),
                          ``(ii) with respect to any partnership, any 
                      specified United States person which owns, 
                      directly or indirectly, more than 10 percent of 
                      the profits interests or capital interests in such 
                      partnership, and
                          ``(iii) in the case of a trust--
                                    ``(I) any specified United States 
                                person treated as an owner of any 
                                portion of such trust under subpart E of 
                                part I of subchapter J of chapter 1, and
                                    ``(II) to the extent provided by the 
                                Secretary in regulations or other 
                                guidance, any specified United States 
                                person which holds, directly or 
                                indirectly, more than 10 percent of the 
                                beneficial interests of such trust.

[[Page 124 STAT. 104]]

                    ``(B) Special rule for investment vehicles.--In the 
                case of any financial institution described in section 
                1471(d)(5)(C), clauses (i), (ii), and (iii) of 
                subparagraph (A) shall be applied by substituting `0 
                percent' for `10 percent'.
            ``(3) Specified united states person.--Except as otherwise 
        provided by the Secretary, the term `specified United States 
        person' means any United States person other than--
                    ``(A) any corporation the stock of which is 
                regularly traded on an established securities market,
                    ``(B) any corporation which is a member of the same 
                expanded affiliated group (as defined in section 
                1471(e)(2) without regard to the last sentence thereof) 
                as a corporation the stock of which is regularly traded 
                on an established securities market,
                    ``(C) any organization exempt from taxation under 
                section 501(a) or an individual retirement plan,
                    ``(D) the United States or any wholly owned agency 
                or instrumentality thereof,
                    ``(E) any State, the District of Columbia, any 
                possession of the United States, any political 
                subdivision of any of the foregoing, or any wholly owned 
                agency or instrumentality of any one or more of the 
                foregoing,
                    ``(F) any bank (as defined in section 581),
                    ``(G) any real estate investment trust (as defined 
                in section 856),
                    ``(H) any regulated investment company (as defined 
                in section 851),
                    ``(I) any common trust fund (as defined in section 
                584(a)), and
                    ``(J) any trust which--
                          ``(i) is exempt from tax under section 664(c), 
                      or
                          ``(ii) is described in section 4947(a)(1).
            ``(4) Withholding agent.--The term `withholding agent' means 
        all persons, in whatever capacity acting, having the control, 
        receipt, custody, disposal, or payment of any withholdable 
        payment.
            ``(5) Foreign entity.--The term `foreign entity' means any 
        entity which is not a United States person.
``SEC. 1474. SPECIAL RULES.

    ``(a) Liability for Withheld Tax.--Every person required to deduct 
and withhold any tax under this chapter is hereby made liable for such 
tax and is hereby indemnified against the claims and demands of any 
person for the amount of any payments made in accordance with the 
provisions of this chapter.
    ``(b) Credits and Refunds.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        determination of whether any tax deducted and withheld under 
        this chapter results in an overpayment by the beneficial owner 
        of the payment to which such tax is attributable shall be made 
        as if such tax had been deducted and withheld under subchapter A 
        of chapter 3.
            ``(2) Special rule where foreign financial institution is 
        beneficial owner of payment.--

[[Page 124 STAT. 105]]

                    ``(A) In general.--In the case of any tax properly 
                deducted and withheld under section 1471 from a 
                specified financial institution payment--
                          ``(i) if the foreign financial institution 
                      referred to in subparagraph (B) with respect to 
                      such payment is entitled to a reduced rate of tax 
                      with respect to such payment by reason of any 
                      treaty obligation of the United States--
                                    ``(I) the amount of any credit or 
                                refund with respect to such tax shall 
                                not exceed the amount of credit or 
                                refund attributable to such reduction in 
                                rate, and
                                    ``(II) no interest shall be allowed 
                                or paid with respect to such credit or 
                                refund, and
                          ``(ii) if such foreign financial institution 
                      is not so entitled, no credit or refund shall be 
                      allowed or paid with respect to such tax.
                    ``(B) Specified financial institution payment.--The 
                term `specified financial institution payment' means any 
                payment if the beneficial owner of such payment is a 
                foreign financial institution.
            ``(3) Requirement to identify substantial united states 
        owners.--No credit or refund shall be allowed or paid with 
        respect to any tax properly deducted and withheld under this 
        chapter unless the beneficial owner of the payment provides the 
        Secretary such information as the Secretary may require to 
        determine whether such beneficial owner is a United States owned 
        foreign entity (as defined in section 1471(d)(3)) and the 
        identity of any substantial United States owners of such entity.

    ``(c) Confidentiality of Information.--
            ``(1) In <<NOTE: Applicability.>> general.--For purposes of 
        this chapter, rules similar to the rules of section 3406(f) 
        shall apply.
            ``(2) Disclosure of list of participating foreign financial 
        institutions permitted.--The identity of a foreign financial 
        institution which meets the requirements of section 1471(b) 
        shall not be treated as return information for purposes of 
        section 6103.

    ``(d) Coordination With Other Withholding Provisions.--The Secretary 
shall provide for the coordination of this chapter with other 
withholding provisions under this title, including providing for the 
proper crediting of amounts deducted and withheld under this chapter 
against amounts required to be deducted and withheld under such other 
provisions.
    ``(e) Treatment of Withholding Under Agreements.--Any tax deducted 
and withheld pursuant to an agreement described in section 1471(b) shall 
be treated for purposes of this title as a tax deducted and withheld by 
a withholding agent under section 1471(a).
    ``(f) Regulations.--The Secretary shall prescribe such regulations 
or other guidance as may be necessary or appropriate to carry out the 
purposes of, and prevent the avoidance of, this chapter.''.
    (b) Special Rule for Interest on Overpayments.--Subsection (e) of 
section 6611 <<NOTE: 26 USC 6611.>> is amended by adding at the end the 
following new paragraph:

[[Page 124 STAT. 106]]

            ``(4) Certain <<NOTE: Applicability.>> withholding taxes.--
        In the case of any overpayment resulting from tax deducted and 
        withheld under chapter 3 or 4, paragraphs (1), (2), and (3) 
        shall be applied by substituting `180 days' for `45 days' each 
        place it appears.''.

    (c) Conforming Amendments.--
            (1) Section 6414 <<NOTE: 26 USC 6414.>>  is amended by 
        inserting ``or 4'' after ``chapter 3''.
            (2) Paragraph (1) of section 6501(b) is amended by inserting 
        ``4,'' after ``chapter 3,''.
            (3) Paragraph (2) of section 6501(b) is amended--
                    (A) by inserting ``4,'' after ``chapter 3,'' in the 
                text thereof, and
                    (B) by striking ``taxes and tax imposed by chapter 
                3'' in the heading thereof and inserting ``and 
                withholding taxes''.
            (4) Paragraph (3) of section 6513(b) is amended--
                    (A) by inserting ``or 4'' after ``chapter 3'', and
                    (B) by inserting ``or 1474(b)'' after ``section 
                1462''.
            (5) Subsection (c) of section 6513 is amended by inserting 
        ``4,'' after ``chapter 3,''.
            (6) Paragraph (1) of section 6724(d) is amended by inserting 
        ``under chapter 4 or'' after ``filed with the Secretary'' in the 
        last sentence thereof.
            (7) Paragraph (2) of section 6724(d) is amended by inserting 
        ``or 4'' after ``chapter 3''.
            (8) The table of chapters of the Internal Revenue Code of 
        1986 is amended by adding at the end the following new item:

 ``Chapter 4--Taxes To Enforce Reporting on Certain Foreign Accounts.''.

    (d) Effective <<NOTE: Applicability. 26 USC 1471 note.>> Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        payments made after December 31, 2012.
            (2) Grandfathered treatment of outstanding obligations.--The 
        amendments made by this section shall not require any amount to 
        be deducted or withheld from any payment under any obligation 
        outstanding on the date which is 2 years after the date of the 
        enactment of this Act or from the gross proceeds from any 
        disposition of such an obligation.
            (3) Interest on overpayments.--The amendment made by 
        subsection (b) shall apply--
                    (A) in the case of such amendment's application to 
                paragraph (1) of section 6611(e) of the Internal Revenue 
                Code of 1986, to returns the due date for which 
                (determined without regard to extensions) is after the 
                date of the enactment of this Act,
                    (B) in the case of such amendment's application to 
                paragraph (2) of such section, to claims for credit or 
                refund of any overpayment filed after the date of the 
                enactment of this Act (regardless of the taxable period 
                to which such refund relates), and
                    (C) in the case of such amendment's application to 
                paragraph (3) of such section, to refunds paid after the 
                date of the enactment of this Act (regardless of the 
                taxable period to which such refund relates).

[[Page 124 STAT. 107]]

SEC. 502. REPEAL OF CERTAIN FOREIGN EXCEPTIONS TO REGISTERED BOND 
                        REQUIREMENTS.

    (a) Repeal of Exception to Denial of Deduction for Interest on Non-
Registered Bonds.--
            (1) In general.--Paragraph (2) of section 163(f) <<NOTE: 26 
        USC 163.>> is amended by striking subparagraph (B) and by 
        redesignating subparagraph (C) as subparagraph (B).
            (2) Conforming amendments.--
                    (A) Paragraph (2) of section 149(a) is amended by 
                inserting ``or'' at the end of subparagraph (A), by 
                striking ``, or'' at the end of subparagraph (B) and 
                inserting a period, and by striking subparagraph (C).
                    (B) Subparagraph (A) of section 163(f)(2) is amended 
                by inserting ``or'' at the end of clause (ii), by 
                striking ``, or'' at the end of clause (iii) and 
                inserting a period, and by striking clause (iv).
                    (C) Subparagraph (B) of section 163(f)(2), as 
                redesignated by paragraph (1), is amended--
                          (i) by striking ``, and subparagraph (B),'' in 
                      the matter preceding clause (i), and
                          (ii) by amending clause (i) to read as 
                      follows:
                          ``(i) such obligation is of a type which the 
                      Secretary has determined by regulations to be used 
                      frequently in avoiding Federal taxes, and''.
                    (D) Sections 165(j)(2)(A) and 1287(b)(1) are each 
                amended by striking ``except that clause (iv) of 
                subparagraph (A), and subparagraph (B), of such section 
                shall not apply''.

    (b) Repeal of Treatment as Portfolio Debt.--
            (1) In general.--Paragraph (2) of section 871(h) is amended 
        to read as follows:
            ``(2) Portfolio interest.--For purposes of this subsection, 
        the term `portfolio interest' means any interest (including 
        original issue discount) which--
                    ``(A) would be subject to tax under subsection (a) 
                but for this subsection, and
                    ``(B) is paid on an obligation--
                          ``(i) which is in registered form, and
                          ``(ii) with respect to which--
                                    ``(I) the United States person who 
                                would otherwise be required to deduct 
                                and withhold tax from such interest 
                                under section 1441(a) receives a 
                                statement (which meets the requirements 
                                of paragraph (5)) that the beneficial 
                                owner of the obligation is not a United 
                                States person, or
                                    ``(II) the Secretary has determined 
                                that such a statement is not required in 
                                order to carry out the purposes of this 
                                subsection.''.
            (2) Conforming amendments.--
                    (A) Section 871(h)(3)(A) is amended by striking 
                ``subparagraph (A) or (B) of''.
                    (B) Paragraph (2) of section 881(c) is amended to 
                read as follows:
            ``(2) Portfolio interest.--For purposes of this subsection, 
        the term `portfolio interest' means any interest (including 
        original issue discount) which--

[[Page 124 STAT. 108]]

                    ``(A) would be subject to tax under subsection (a) 
                but for this subsection, and
                    ``(B) is paid on an obligation--
                          ``(i) which is in registered form, and
                          ``(ii) with respect to which--
                                    ``(I) the person who would otherwise 
                                be required to deduct and withhold tax 
                                from such interest under section 1442(a) 
                                receives a statement which meets the 
                                requirements of section 871(h)(5) that 
                                the beneficial owner of the obligation 
                                is not a United States person, or
                                    ``(II) the Secretary has determined 
                                that such a statement is not required in 
                                order to carry out the purposes of this 
                                subsection.''.

    (c) Dematerialized Book Entry Systems Treated as Registered Form.--
Paragraph (3) of section 163(f) <<NOTE: 26 USC 163.>> is amended by 
inserting ``, except that a dematerialized book entry system or other 
book entry system specified by the Secretary shall be treated as a book 
entry system described in such section'' before the period at the end.

    (d) Repeal of Exception to Requirement That Treasury Obligations Be 
in Registered Form.--
            (1) In general.--Subsection (g) of section 3121 of title 31, 
        United States Code, is amended by striking paragraph (2) and by 
        redesignating paragraphs (3) and (4) as paragraphs (2) and (3), 
        respectively.
            (2) Conforming amendments.--Paragraph (1) of section 3121(g) 
        of such title is amended--
                    (A) by adding ``or'' at the end of subparagraph (A),
                    (B) by striking ``; or'' at the end of subparagraph 
                (B) and inserting a period, and
                    (C) by striking subparagraph (C).

    (e) Preservation of Exception for Excise Tax Purposes.--Paragraph 
(1) of section 4701(b) <<NOTE: 26 USC 4701.>> is amended to read as 
follows:
            ``(1) Registration-required obligation.--
                    ``(A) In general.--The term `registration-required 
                obligation' has the same meaning as when used in section 
                163(f), except that such term shall not include any 
                obligation which--
                          ``(i) is required to be registered under 
                      section 149(a), or
                          ``(ii) is described in subparagraph (B).
                    ``(B) Certain obligations not included.--An 
                obligation is described in this subparagraph if--
                          ``(i) there are arrangements reasonably 
                      designed to ensure that such obligation will be 
                      sold (or resold in connection with the original 
                      issue) only to a person who is not a United States 
                      person,
                          ``(ii) interest on such obligation is payable 
                      only outside the United States and its 
                      possessions, and
                          ``(iii) on the face of such obligation there 
                      is a statement that any United States person who 
                      holds such obligation will be subject to 
                      limitations under the United States income tax 
                      laws.''.

    (f) Effective <<NOTE: Applicability. 26 USC 149 note.>> Date.--The 
amendments made by this section shall apply to obligations issued after 
the date which is 2 years after the date of the enactment of this Act.

[[Page 124 STAT. 109]]

         PART II--UNDER REPORTING WITH RESPECT TO FOREIGN ASSETS

SEC. 511. DISCLOSURE OF INFORMATION WITH RESPECT TO FOREIGN 
                        FINANCIAL ASSETS.

    (a) In General.--Subpart A of part III of subchapter A of chapter 61 
is amended by inserting after section 6038C the following new section:
``SEC. 6038D. INFORMATION WITH RESPECT TO FOREIGN FINANCIAL 
                            ASSETS.

    ``(a) In General.--Any individual who, during any taxable year, 
holds any interest in a specified foreign financial asset shall attach 
to such person's return of tax imposed by subtitle A for such taxable 
year the information described in subsection (c) with respect to each 
such asset if the aggregate value of all such assets exceeds $50,000 (or 
such higher dollar amount as the Secretary may prescribe).
    ``(b) Specified Foreign Financial Assets.--For purposes of this 
section, the term `specified foreign financial asset' means--
            ``(1) any financial account (as defined in section 
        1471(d)(2)) maintained by a foreign financial institution (as 
        defined in section 1471(d)(4)), and
            ``(2) any of the following assets which are not held in an 
        account maintained by a financial institution (as defined in 
        section 1471(d)(5))--
                    ``(A) any stock or security issued by a person other 
                than a United States person,
                    ``(B) any financial instrument or contract held for 
                investment that has an issuer or counterparty which is 
                other than a United States person, and
                    ``(C) any interest in a foreign entity (as defined 
                in section 1473).

    ``(c) Required Information.--The information described in this 
subsection with respect to any asset is:
            ``(1) In the case of any account, the name and address of 
        the financial institution in which such account is maintained 
        and the number of such account.
            ``(2) In the case of any stock or security, the name and 
        address of the issuer and such information as is necessary to 
        identify the class or issue of which such stock or security is a 
        part.
            ``(3) In the case of any other instrument, contract, or 
        interest--
                    ``(A) such information as is necessary to identify 
                such instrument, contract, or interest, and
                    ``(B) the names and addresses of all issuers and 
                counterparties with respect to such instrument, 
                contract, or interest.
            ``(4) The maximum value of the asset during the taxable 
        year.

    ``(d) Penalty for Failure To Disclose.--
            ``(1) In general.--If any individual fails to furnish the 
        information described in subsection (c) with respect to any 
        taxable year at the time and in the manner described in 
        subsection (a), such person shall pay a penalty of $10,000.

[[Page 124 STAT. 110]]

            ``(2) Increase in penalty where failure continues after 
        notification.--If <<NOTE: Time period.>> any failure described 
        in paragraph (1) continues for more than 90 days after the day 
        on which the Secretary mails notice of such failure to the 
        individual, such individual shall pay a penalty (in addition to 
        the penalties under paragraph (1)) of $10,000 for each 30-day 
        period (or fraction thereof) during which such failure continues 
        after the expiration of such 90-day period. The penalty imposed 
        under this paragraph with respect to any failure shall not 
        exceed $50,000.

    ``(e) Presumption That Value of Specified Foreign Financial Assets 
Exceeds Dollar Threshold.--If--
            ``(1) <<NOTE: Determination.>> the Secretary determines that 
        an individual has an interest in one or more specified foreign 
        financial assets, and
            ``(2) such individual does not provide sufficient 
        information to demonstrate the aggregate value of such assets,

then the aggregate value of such assets shall be treated as being in 
excess of $50,000 (or such higher dollar amount as the Secretary 
prescribes for purposes of subsection (a)) for purposes of assessing the 
penalties imposed under this section.
    ``(f) Application to Certain Entities.--To the extent provided by 
the Secretary in regulations or other guidance, the provisions of this 
section shall apply to any domestic entity which is formed or availed of 
for purposes of holding, directly or indirectly, specified foreign 
financial assets, in the same manner as if such entity were an 
individual.
    ``(g) Reasonable Cause Exception.--No penalty shall be imposed by 
this section on any failure which is shown to be due to reasonable cause 
and not due to willful neglect. The fact that a foreign jurisdiction 
would impose a civil or criminal penalty on the taxpayer (or any other 
person) for disclosing the required information is not reasonable cause.
    ``(h) Regulations.--The Secretary shall prescribe such regulations 
or other guidance as may be necessary or appropriate to carry out the 
purposes of this section, including regulations or other guidance which 
provide appropriate exceptions from the application of this section in 
the case of--
            ``(1) classes of assets identified by the Secretary, 
        including any assets with respect to which the Secretary 
        determines that disclosure under this section would be 
        duplicative of other disclosures,
            ``(2) nonresident aliens, and
            ``(3) bona fide residents of any possession of the United 
        States.''.

    (b) Clerical Amendment.--The table of sections for subpart A of part 
III of subchapter A of chapter 61 is amended by inserting after the item 
relating to section 6038C the following new item:

``Sec. 6038D. Information with respect to foreign financial assets.''.

    (c) Effective <<NOTE: Applicability. 26 USC 6038D note.>> Date.--The 
amendments made by this section shall apply to taxable years beginning 
after the date of the enactment of this Act.
SEC. 512. PENALTIES FOR UNDERPAYMENTS ATTRIBUTABLE TO UNDISCLOSED 
                        FOREIGN FINANCIAL ASSETS.

    (a) In General.--Section 6662, <<NOTE: 26 USC 6662.>> as amended by 
this Act, is amended--

[[Page 124 STAT. 111]]

            (1) in subsection (b), by inserting after paragraph (6) the 
        following new paragraph:
            ``(7) Any undisclosed foreign financial asset 
        understatement.'', and
            (2) by adding at the end the following new subsection:

    ``(j) Undisclosed Foreign Financial Asset Understatement.--
            ``(1) In general.--For purposes of this section, the term 
        `undisclosed foreign financial asset understatement' means, for 
        any taxable year, the portion of the understatement for such 
        taxable year which is attributable to any transaction involving 
        an undisclosed foreign financial asset.
            ``(2) Undisclosed foreign financial asset.--For purposes of 
        this subsection, the term `undisclosed foreign financial asset' 
        means, with respect to any taxable year, any asset with respect 
        to which information was required to be provided under section 
        6038, 6038B, 6038D, 6046A, or 6048 for such taxable year but was 
        not provided by the taxpayer as required under the provisions of 
        those sections.
            ``(3) Increase in penalty for undisclosed foreign financial 
        asset understatements.--In the case of any portion of an 
        underpayment which is attributable to any undisclosed foreign 
        financial asset understatement, subsection (a) shall be applied 
        with respect to such portion by substituting `40 percent' for 
        `20 percent'.''.

    (b) Effective <<NOTE: Applicability. 26 USC 6662 note.>> Date.--The 
amendments made by this section shall apply to taxable years beginning 
after the date of the enactment of this Act.
SEC. 513. MODIFICATION OF STATUTE OF LIMITATIONS FOR SIGNIFICANT 
                        OMISSION OF INCOME IN CONNECTION WITH 
                        FOREIGN ASSETS.

    (a) Extension of Statute of Limitations.--
            (1) In general.--Paragraph (1) of section 6501(e) <<NOTE: 26 
        USC 6501.>> is amended by redesignating subparagraphs (A) and 
        (B) as subparagraphs (B) and (C), respectively, and by inserting 
        before subparagraph (B) (as so redesignated) the following new 
        subparagraph:
                    ``(A) General <<NOTE: Time period.>> rule.--If the 
                taxpayer omits from gross income an amount properly 
                includible therein and--
                          ``(i) such amount is in excess of 25 percent 
                      of the amount of gross income stated in the 
                      return, or
                          ``(ii) such amount--
                                    ``(I) is attributable to one or more 
                                assets with respect to which information 
                                is required to be reported under section 
                                6038D (or would be so required if such 
                                section were applied without regard to 
                                the dollar threshold specified in 
                                subsection (a) thereof and without 
                                regard to any exceptions provided 
                                pursuant to subsection (h)(1) thereof), 
                                and
                                    ``(II) is in excess of $5,000,
                the tax may be assessed, or a proceeding in court for 
                collection of such tax may be begun without assessment, 
                at any time within 6 years after the return was 
                filed.''.
            (2) Conforming amendments.--

[[Page 124 STAT. 112]]

                    (A) Subparagraph (B) of section 
                6501(e)(1), <<NOTE: 26 USC 6501.>> as redesignated by 
                paragraph (1), is amended by striking all that precedes 
                clause (i) and inserting the following:
                    ``(B) Determination of gross income.--For purposes 
                of subparagraph (A)--''.
                    (B) Paragraph (2) of section 6229(c) is amended by 
                striking ``which is in excess of 25 percent of the 
                amount of gross income stated in its return'' and 
                inserting ``and such amount is described in clause (i) 
                or (ii) of section 6501(e)(1)(A)''.

    (b) Additional Reports Subject to Extended Period.--Paragraph (8) of 
section 6501(c) is amended--
            (1) by inserting ``pursuant to an election under section 
        1295(b) or'' before ``under section 6038'',
            (2) by inserting ``1298(f),'' before ``6038'', and
            (3) by inserting ``6038D,'' after ``6038B,''.

    (c) Clarifications Related to Failure To Disclose Foreign 
Transfers.--Paragraph (8) of section 6501(c) is amended by striking 
``event'' and inserting ``tax return, event,''.
    (d) Effective <<NOTE: Applicability. 26 USC 6229 note.>> Date.--The 
amendments made by this section shall apply to--
            (1) returns filed after the date of the enactment of this 
        Act; and
            (2) returns filed on or before such date if the period 
        specified in section 6501 of the Internal Revenue Code of 1986 
        (determined without regard to such amendments) for assessment of 
        such taxes has not expired as of such date.

                  PART III--OTHER DISCLOSURE PROVISIONS

SEC. 521. REPORTING OF ACTIVITIES WITH RESPECT TO PASSIVE FOREIGN 
                        INVESTMENT COMPANIES.

    (a) In General.--Section 1298 is amended by redesignating subsection 
(f) as subsection (g) and by inserting after subsection (e) the 
following new subsection:
    ``(f) Reporting Requirement.--Except as otherwise provided by the 
Secretary, each United States person who is a shareholder of a passive 
foreign investment company shall file an annual report containing such 
information as the Secretary may require.''.
    (b) Conforming Amendment.--Subsection (e) of section 1291 is amended 
by striking ``, (d), and (f)'' and inserting ``and (d)''.
    (c) <<NOTE: 26 USC 1291 note.>>  Effective Date.--The amendments 
made by this section take effect on the date of the enactment of this 
Act.
SEC. 522. SECRETARY PERMITTED TO REQUIRE FINANCIAL INSTITUTIONS TO 
                        FILE CERTAIN RETURNS RELATED TO 
                        WITHHOLDING ON FOREIGN TRANSFERS 
                        ELECTRONICALLY.

    (a) In General.--Subsection (e) of section 6011 is amended by adding 
at the end the following new paragraph:
            ``(4) Special rule for returns filed by financial 
        institutions with respect to withholding on foreign transfers.--
        The numerical limitation under paragraph (2)(A) shall not apply 
        to any return filed by a financial institution (as defined in 
        section 1471(d)(5)) with respect to tax for which such 
        institution is made liable under section 1461 or 1474(a).''.

[[Page 124 STAT. 113]]

    (b) Conforming Amendment.--Subsection (c) of section <<NOTE: 26 USC 
6724.>> 6724 is amended by inserting ``or with respect to a return 
described in section 6011(e)(4)'' before the end period.

    (c) Effective <<NOTE: 26 USC 6011 note.>> Date.--The amendment made 
by this section shall apply to returns the due date for which 
(determined without regard to extensions) is after the date of the 
enactment of this Act.

              PART IV--PROVISIONS RELATED TO FOREIGN TRUSTS

SEC. 531. CLARIFICATIONS WITH RESPECT TO FOREIGN TRUSTS WHICH ARE 
                        TREATED AS HAVING A UNITED STATES 
                        BENEFICIARY.

    (a) In General.--Paragraph (1) of section 679(c) is amended by 
adding at the end the following:
        ``For purposes of subparagraph (A), an amount shall be treated 
        as accumulated for the benefit of a United States person even if 
        the United States person's interest in the trust is contingent 
        on a future event.''.

    (b) Clarification Regarding Discretion To Identify Beneficiaries.--
Subsection (c) of section 679 is amended by adding at the end the 
following new paragraph:
            ``(4) Special rule in case of discretion to identify 
        beneficiaries.--For purposes of paragraph (1)(A), if any person 
        has the discretion (by authority given in the trust agreement, 
        by power of appointment, or otherwise) of making a distribution 
        from the trust to, or for the benefit of, any person, such trust 
        shall be treated as having a beneficiary who is a United States 
        person unless--
                    ``(A) the terms of the trust specifically identify 
                the class of persons to whom such distributions may be 
                made, and
                    ``(B) none of those persons are United States 
                persons during the taxable year.''.

    (c) Clarification That Certain Agreements and Understandings Are 
Terms of the Trust.--Subsection (c) of section 679, as amended by 
subsection (b), is amended by adding at the end the following new 
paragraph:
            ``(5) Certain agreements and understandings treated as terms 
        of the trust.--For purposes of paragraph (1)(A), if any United 
        States person who directly or indirectly transfers property to 
        the trust is directly or indirectly involved in any agreement or 
        understanding (whether written, oral, or otherwise) that may 
        result in the income or corpus of the trust being paid or 
        accumulated to or for the benefit of a United States person, 
        such agreement or understanding shall be treated as a term of 
        the trust.''.
SEC. 532. PRESUMPTION THAT FOREIGN TRUST HAS UNITED STATES 
                        BENEFICIARY.

    (a) In General.--Section 679 is amended by redesignating subsection 
(d) as subsection (e) and inserting after subsection (c) the following 
new subsection:
    ``(d) Presumption That Foreign Trust Has United States 
Beneficiary.--If a United States person directly or indirectly transfers 
property to a foreign trust (other than a trust described in

[[Page 124 STAT. 114]]

section 6048(a)(3)(B)(ii)), the Secretary may treat such trust as having 
a United States beneficiary for purposes of applying this section to 
such transfer unless such person--
            ``(1) submits such information to the Secretary as the 
        Secretary may require with respect to such transfer, and
            ``(2) demonstrates to the satisfaction of the Secretary that 
        such trust satisfies the requirements of subparagraphs (A) and 
        (B) of subsection (c)(1).''.

    (b) Effective <<NOTE: Applicability. 26 USC 679 note.>> Date.--The 
amendments made by this section shall apply to transfers of property 
after the date of the enactment of this Act.
SEC. 533. UNCOMPENSATED USE OF TRUST PROPERTY.

    (a) In General.--Paragraph (1) of section <<NOTE: 26 USC 
643.>> 643(i) is amended--
            (1) by striking ``directly or indirectly to'' and inserting 
        ``(or permits the use of any other trust property) directly or 
        indirectly to or by'', and
            (2) by inserting ``(or the fair market value of the use of 
        such property)'' after ``the amount of such loan''.

    (b) Exception for Compensated Use.--Paragraph (2) of section 643(i) 
is amended by adding at the end the following new subparagraph:
                    ``(E) Exception for compensated use of property.--In 
                the case of the use of any trust property other than a 
                loan of cash or marketable securities, paragraph (1) 
                shall not apply to the extent that the trust is paid the 
                fair market value of such use within a reasonable period 
                of time of such use.''.

    (c) Application to Grantor Trusts.--Subsection (c) of section 679, 
as amended by this Act, is amended by adding at the end the following 
new paragraph:
            ``(6) Uncompensated use of trust property treated as a 
        payment.--For purposes of this subsection, a loan of cash or 
        marketable securities (or the use of any other trust property) 
        directly or indirectly to or by any United States person 
        (whether or not a beneficiary under the terms of the trust) 
        shall be treated as paid or accumulated for the benefit of a 
        United States person. The preceding sentence shall not apply to 
        the extent that the United States person repays the loan at a 
        market rate of interest (or pays the fair market value of the 
        use of such property) within a reasonable period of time.''.

    (d) Conforming Amendments.--Paragraph (3) of section 643(i) is 
amended--
            (1) by inserting ``(or use of property)'' after ``If any 
        loan'',
            (2) by inserting ``or the return of such property'' before 
        ``shall be disregarded'', and
            (3) by striking ``regarding loan principal'' in the heading 
        thereof.

    (e) Effective <<NOTE: Applicability. 26 USC 643 note.>> Date.--The 
amendments made by this section shall apply to loans made, and uses of 
property, after the date of the enactment of this Act.
SEC. 534. REPORTING REQUIREMENT OF UNITED STATES OWNERS OF FOREIGN 
                        TRUSTS.

    (a) In General.--Paragraph (1) of section 6048(b) is amended by 
inserting ``shall submit such information as the Secretary may

[[Page 124 STAT. 115]]

prescribe with respect to such trust for such year and'' before ``shall 
be responsible to ensure''.
    (b) Effective <<NOTE: Applicability. 26 USC 6048 note.>> Date.--The 
amendment made by this section shall apply to taxable years beginning 
after the date of the enactment of this Act.
SEC. 535. MINIMUM PENALTY WITH RESPECT TO FAILURE TO REPORT ON 
                        CERTAIN FOREIGN TRUSTS.

    (a) In General.--Subsection (a) of section <<NOTE: 26 USC 
6677.>> 6677 is amended--
            (1) by inserting ``the greater of $10,000 or'' before ``35 
        percent'', and
            (2) by striking the last sentence and inserting the 
        following: ``At such time as the gross reportable amount with 
        respect to any failure can be determined by the Secretary, any 
        subsequent penalty imposed under this subsection with respect to 
        such failure shall be reduced as necessary to assure that the 
        aggregate amount of such penalties do not exceed the gross 
        reportable amount (and to the extent that such aggregate amount 
        already exceeds the gross reportable amount the Secretary shall 
        refund such excess to the taxpayer).''

    (b) Effective <<NOTE: Applicability. 26 USC 6677 note.>> Date.--The 
amendments made by this section shall apply to notices and returns 
required to be filed after December 31, 2009.

 PART V--SUBSTITUTE DIVIDENDS AND DIVIDEND EQUIVALENT PAYMENTS RECEIVED 
                 BY FOREIGN PERSONS TREATED AS DIVIDENDS

SEC. 541. SUBSTITUTE DIVIDENDS AND DIVIDEND EQUIVALENT PAYMENTS 
                        RECEIVED BY FOREIGN PERSONS TREATED AS 
                        DIVIDENDS.

    (a) In General.--Section 871 is amended by redesignating subsection 
(l) as subsection (m) and by inserting after subsection (k) the 
following new subsection:
    ``(l) Treatment <<NOTE: Definitions.>> of Dividend Equivalent 
Payments.--
            ``(1) In general.--For purposes of subsection (a), sections 
        881 and 4948(a), and chapters 3 and 4, a dividend equivalent 
        shall be treated as a dividend from sources within the United 
        States.
            ``(2) Dividend equivalent.--For purposes of this subsection, 
        the term `dividend equivalent' means--
                    ``(A) any substitute dividend made pursuant to a 
                securities lending or a sale-repurchase transaction that 
                (directly or indirectly) is contingent upon, or 
                determined by reference to, the payment of a dividend 
                from sources within the United States,
                    ``(B) any payment made pursuant to a specified 
                notional principal contract that (directly or 
                indirectly) is contingent upon, or determined by 
                reference to, the payment of a dividend from sources 
                within the United States, and
                    ``(C) any other payment determined by the Secretary 
                to be substantially similar to a payment described in 
                subparagraph (A) or (B).

[[Page 124 STAT. 116]]

            ``(3) Specified notional principal contract.--For purposes 
        of this subsection, the term `specified notional principal 
        contract' means--
                    ``(A) any notional principal contract if--
                          ``(i) in connection with entering into such 
                      contract, any long party to the contract transfers 
                      the underlying security to any short party to the 
                      contract,
                          ``(ii) in connection with the termination of 
                      such contract, any short party to the contract 
                      transfers the underlying security to any long 
                      party to the contract,
                          ``(iii) the underlying security is not readily 
                      tradable on an established securities market,
                          ``(iv) in connection with entering into such 
                      contract, the underlying security is posted as 
                      collateral by any short party to the contract with 
                      any long party to the contract, or
                          ``(v) such contract is identified by the 
                      Secretary as a specified notional principal 
                      contract,
                    ``(B) in the case of payments made after the date 
                which is 2 years after the date of the enactment of this 
                subsection, any notional principal contract unless the 
                Secretary determines that such contract is of a type 
                which does not have the potential for tax avoidance.
            ``(4) Definitions.--For purposes of paragraph (3)(A)--
                    ``(A) Long party.--The term `long party' means, with 
                respect to any underlying security of any notional 
                principal contract, any party to the contract which is 
                entitled to receive any payment pursuant to such 
                contract which is contingent upon, or determined by 
                reference to, the payment of a dividend from sources 
                within the United States with respect to such underlying 
                security.
                    ``(B) Short party.--The term `short party' means, 
                with respect to any underlying security of any notional 
                principal contract, any party to the contract which is 
                not a long party with respect to such underlying 
                security.
                    ``(C) Underlying security.--The term `underlying 
                security' means, with respect to any notional principal 
                contract, the security with respect to which the 
                dividend referred to in paragraph (2)(B) is paid. For 
                purposes of this paragraph, any index or fixed basket of 
                securities shall be treated as a single security.
            ``(5) Payments determined on gross basis.--For purposes of 
        this subsection, the term `payment' includes any gross amount 
        which is used in computing any net amount which is transferred 
        to or from the taxpayer.
            ``(6) Prevention of over-withholding.--In the case of any 
        chain of dividend equivalents one or more of which is subject to 
        tax under subsection (a) or section 881, the Secretary may 
        reduce such tax, but only to the extent that the taxpayer can 
        establish that such tax has been paid with respect to another 
        dividend equivalent in such chain, or is not otherwise due, or 
        as the Secretary determines is appropriate to address the role 
        of financial intermediaries in such chain. For purposes of this 
        paragraph, a dividend shall be treated as a dividend equivalent.
            ``(7) Coordination <<NOTE: Contracts.>> with chapters 3 and 
        4.--For purposes of chapters 3 and 4, each person that is a 
        party to any contract

[[Page 124 STAT. 117]]

        or other arrangement that provides for the payment of a dividend 
        equivalent shall be treated as having control of such 
        payment.''.

    (b) Effective <<NOTE: Applicability. 26 USC 871 note.>> Date.--The 
amendments made by this section shall apply to payments made on or after 
the date that is 180 days after the date of the enactment of this Act.

  Subtitle B--Delay in Application of Worldwide Allocation of Interest

SEC. 551. DELAY IN APPLICATION OF WORLDWIDE ALLOCATION OF 
                        INTEREST.

    (a) In General.--Paragraphs (5)(D) and (6) of <<NOTE: 26 USC 
864.>> section 864(f) are each amended by striking ``December 31, 2017'' 
and inserting ``December 31, 2020''.

    (b) Effective <<NOTE: 26 USC 864 note.>> Date.--The amendments made 
by this section shall take effect on the date of the enactment of this 
Act.

                    Subtitle C--Budgetary Provisions

SEC. 561. TIME <<NOTE: 26 USC 6655 note.>> FOR PAYMENT OF 
                        CORPORATE ESTIMATED TAXES.

    Notwithstanding section 6655 of the Internal Revenue Code of 1986, 
in the case of a corporation with assets of not less than $1,000,000,000 
(determined as of the end of the preceding taxable year)--
            (1) the percentage under paragraph (1) of section 202(b) of 
        the Corporate Estimated Tax Shift Act of 2009 in effect on the 
        date of the enactment of this Act is increased by 23 percentage 
        points,
            (2) the amount of any required installment of corporate 
        estimated tax which is otherwise due in July, August, or 
        September of 2015 shall be 121.5 percent of such amount,
            (3) the amount of any required installment of corporate 
        estimated tax which is otherwise due in July, August, or 
        September of 2019 shall be 106.5 percent of such amount, and
            (4) the amount of the next required installment after an 
        installment referred to in paragraph (2) or (3) shall be 
        appropriately reduced to reflect the amount of the increase by 
        reason of such paragraph.
SEC. 562. PAYGO COMPLIANCE.

    The budgetary effects of this Act, for purposes of complying with 
the Statutory Pay-As-You-Go-Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, jointly submitted for printing in the 
Congressional Record by the Chairman of the House and Senate Budget 
Committees, provided that such statement has been

[[Page 124 STAT. 118]]

submitted prior to the vote on passage in the House acting first on this 
conference report or amendments between the Houses.

    Approved March 18, 2010.

LEGISLATIVE HISTORY--H.R. 2847:
---------------------------------------------------------------------------

HOUSE REPORTS: No. 111-149 (Comm. on Appropriations).
SENATE REPORTS: No. 111-34 (Comm. on Appropriations).
CONGRESSIONAL RECORD:
                                                        Vol. 155 (2009):
                                    June 16-18, considered and passed 
                                        House.
                                    Oct. 7, 8, 13, Nov. 5, considered 
                                        and passed Senate, amended.
                                    Dec. 16, House concurred in Senate 
                                        amendment with an amendment.
                                                        Vol. 156 (2010):
                                    Feb. 11, 22-24, Senate considered 
                                        and concurred in House amendment 
                                        with an amendment.
                                    Mar. 4, House concurred in Senate 
                                        amendment with an amendment.
                                    Mar. 11, 15, 17, Senate considered 
                                        and concurred in House 
                                        amendment.
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2010):
            Mar. 18, Presidential remarks.

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