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