[111th Congress Public Law 92]
[From the U.S. Government Printing Office]
[[Page 2983]]
WORKER, HOMEOWNERSHIP, AND BUSINESS ASSISTANCE ACT OF 2009
[[Page 123 STAT. 2984]]
Public Law 111-92
111th Congress
An Act
To amend the Supplemental Appropriations Act, 2008 to provide for the
temporary availability of certain additional emergency unemployment
compensation, and for other purposes. <<NOTE: Nov. 6, 2009 - [H.R.
3548]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Worker,
Homeownership, and Business Assistance Act of 2009. Inter-governmental
relations.>>
SECTION 1. <<NOTE: 26 USC 1 note.>> SHORT TITLE.
This Act may be cited as the ``Worker, Homeownership, and Business
Assistance Act of 2009''.
SEC. 2. REVISIONS TO SECOND-TIER BENEFITS.
(a) In General.--Section 4002(c) of the Supplemental Appropriations
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A), by
striking ``If'' and all that follows through ``paragraph
(2))'' and inserting ``At the time that the amount
established in an individual's account under subsection
(b)(1) is exhausted'';
(B) in subparagraph (A), by striking ``50 percent''
and inserting ``54 percent''; and
(C) in subparagraph (B), by striking ``13'' and
inserting ``14'';
(2) by striking paragraph (2); and
(3) by redesignating paragraph (3) as paragraph (2).
(b) Effective <<NOTE: Applicability. 26 USC 3304 note.>> Date.--The
amendments made by this section shall apply as if included in the
enactment of the Supplemental Appropriations Act, 2008, except that no
amount shall be payable by virtue of such amendments with respect to any
week of unemployment commencing before the date of the enactment of this
Act.
SEC. 3. THIRD-TIER EMERGENCY UNEMPLOYMENT COMPENSATION.
(a) In General.--Section 4002 of the Supplemental Appropriations
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended by adding
at the end the following new subsection:
``(d) Third-tier Emergency Unemployment Compensation.--
``(1) In general.--If, at the time that the amount added to
an individual's account under subsection (c)(1) (hereinafter
`second-tier emergency unemployment compensation') is exhausted
or at any time thereafter, such individual's State is in an
extended benefit period (as determined under paragraph (2)),
such account shall be further augmented by an
[[Page 123 STAT. 2985]]
amount (hereinafter `third-tier emergency unemployment
compensation') equal to the lesser of--
``(A) 50 percent of the total amount of regular
compensation (including dependents' allowances) payable
to the individual during the individual's benefit year
under the State law; or
``(B) 13 times the individual's average weekly
benefit amount (as determined under subsection (b)(2))
for the benefit year.
``(2) Extended <<NOTE: Applicability.>> benefit period.--For
purposes of paragraph (1), a State shall be considered to be in
an extended benefit period, as of any given time, if--
``(A) such a period would then be in effect for such
State under such Act if section 203(d) of such Act--
``(i) were applied by substituting `4' for `5'
each place it appears; and
``(ii) did not include the requirement under
paragraph (1)(A) thereof; or
``(B) such a period would then be in effect for such
State under such Act if--
``(i) section 203(f) of such Act were applied
to such State (regardless of whether the State by
law had provided for such application); and
``(ii) such section 203(f)--
``(I) were applied by substituting
`6.0' for `6.5' in paragraph (1)(A)(i)
thereof; and
``(II) did not include the
requirement under paragraph (1)(A)(ii)
thereof.
``(3) Limitation.--The account of an individual may be
augmented not more than once under this subsection.''.
(b) Conforming Amendment to Non-augmentation Rule.--Section
4007(b)(2) of the Supplemental Appropriations Act, 2008 (Public Law 110-
252; 26 U.S.C. 3304 note) is amended--
(1) by striking ``then section 4002(c)'' and inserting
``then subsections (c) and (d) of section 4002''; and
(2) by striking ``paragraph (2) of such section)'' and
inserting ``paragraph (2) of such subsection (c) or (d) (as the
case may be))''.
(c) Effective <<NOTE: Applicability. 26 USC 3304 note.>> Date.--The
amendments made by this section shall apply as if included in the
enactment of the Supplemental Appropriations Act, 2008, except that no
amount shall be payable by virtue of such amendments with respect to any
week of unemployment commencing before the date of the enactment of this
Act.
SEC. 4. FOURTH-TIER EMERGENCY UNEMPLOYMENT COMPENSATION.
(a) In General.--Section 4002 of the Supplemental Appropriations
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note), as amended by
section 3(a), is amended by adding at the end the following new
subsection:
``(e) Fourth-tier Emergency Unemployment Compensation.--
``(1) In general.--If, at the time that the amount added to
an individual's account under subsection (d)(1) (third-tier
emergency unemployment compensation) is exhausted or at any time
thereafter, such individual's State is in an extended benefit
period (as determined under paragraph (2)), such
[[Page 123 STAT. 2986]]
account shall be further augmented by an amount (hereinafter
`fourth-tier emergency unemployment compensation') equal to the
lesser of--
``(A) 24 percent of the total amount of regular
compensation (including dependents' allowances) payable
to the individual during the individual's benefit year
under the State law; or
``(B) 6 times the individual's average weekly
benefit amount (as determined under subsection (b)(2))
for the benefit year.
``(2) Extended <<NOTE: Applicability.>> benefit period.--For
purposes of paragraph (1), a State shall be considered to be in
an extended benefit period, as of any given time, if--
``(A) such a period would then be in effect for such
State under such Act if section 203(d) of such Act--
``(i) were applied by substituting `6' for `5'
each place it appears; and
``(ii) did not include the requirement under
paragraph (1)(A) thereof; or
``(B) such a period would then be in effect for such
State under such Act if--
``(i) section 203(f) of such Act were applied
to such State (regardless of whether the State by
law had provided for such application); and
``(ii) such section 203(f)--
``(I) were applied by substituting
`8.5' for `6.5' in paragraph (1)(A)(i)
thereof; and
``(II) did not include the
requirement under paragraph (1)(A)(ii)
thereof.
``(3) Limitation.--The account of an individual may be
augmented not more than once under this subsection.''.
(b) Conforming Amendment to Non-augmentation Rule.--Section
4007(b)(2) of the Supplemental Appropriations Act, 2008 (Public Law 110-
252; 26 U.S.C. 3304 note), as amended by section 3(b), is amended--
(1) by striking ``and (d)'' and inserting ``, (d), and (e)
of section 4002''; and
(2) by striking ``or (d)'' and inserting ``, (d), or (e) (as
the case may be))''.
(c) Effective <<NOTE: Applicability. 26 USC 3304 note.>> Date.--The
amendments made by this section shall apply as if included in the
enactment of the Supplemental Appropriations Act, 2008, except that no
amount shall be payable by virtue of such amendments with respect to any
week of unemployment commencing before the date of the enactment of this
Act.
SEC. 5. COORDINATION.
Section 4002 of the Supplemental Appropriations Act, 2008 (Public
Law 110-252; 26 U.S.C. 3304 note), as amended by section 4, is amended
by adding at the end the following new subsection:
``(f) Coordination Rules.--
``(1) Coordination with extended compensation.--
Notwithstanding an election under section 4001(e) by a State to
provide for the payment of emergency unemployment compensation
prior to extended compensation, such State may pay extended
compensation to an otherwise eligible individual prior
[[Page 123 STAT. 2987]]
to any emergency unemployment compensation under subsection (c),
(d), or (e) (by reason of the amendments made by sections 2, 3,
and 4 of the Worker, Homeownership, and Business Assistance Act
of 2009), if such individual claimed extended compensation for
at least 1 week of unemployment after the exhaustion of
emergency unemployment compensation under subsection (b) (as
such subsection was in effect on the day before the date of the
enactment of this subsection).
``(2) Coordination with tiers ii, iii, and iv.--If a State
determines that implementation of the increased entitlement to
second-tier emergency unemployment compensation by reason of the
amendments made by section 2 of the Worker, Homeownership, and
Business Assistance Act of 2009 would unduly delay the prompt
payment of emergency unemployment compensation under this title
by reason of the amendments made by such Act, such State may
elect to pay third-tier emergency unemployment compensation
prior to the payment of such increased second-tier emergency
unemployment compensation until such time as such State
determines that such increased second-tier emergency
unemployment compensation may be paid without such undue delay.
If a State makes the election under the preceding sentence,
then, for purposes of determining whether an account may be
augmented for fourth-tier emergency unemployment compensation
under subsection (e), such State shall treat the date of
exhaustion of such increased second-tier emergency unemployment
compensation as the date of exhaustion of third-tier emergency
unemployment compensation, if such date is later than the date
of exhaustion of the third-tier emergency unemployment
compensation.''.
SEC. 6. TRANSFER OF FUNDS.
Section 4004(e)(1) of the Supplemental Appropriations Act, 2008
(Public Law 110-252; 26 U.S.C. 3304 note) is amended by striking
``Act;'' and inserting ``Act and sections 2, 3, and 4 of the Worker,
Homeownership, and Business Assistance Act of 2009;''.
SEC. 7. EXPANSION OF MODERNIZATION GRANTS FOR UNEMPLOYMENT
RESULTING FROM COMPELLING FAMILY REASON.
(a) In General.--Clause (i) of section 903(f)(3)(B) of the Social
Security Act (42 U.S.C. 1103(f)(3)(B)) is amended to read as follows:
``(i) One or both of the following offenses as
selected by the State, but in making such
selection, the resulting change in the State law
shall not supercede any other provision of law
relating to unemployment insurance to the extent
that such other provision provides broader access
to unemployment benefits for victims of such
selected offense or offenses:
``(I) Domestic violence, verified by
such reasonable and confidential
documentation as the State law may
require, which causes the individual
reasonably to believe that such
individual's continued employment would
jeopardize the safety of the individual
or of any member of the individual's
immediate family (as defined by the
Secretary of Labor); and
``(II) Sexual assault, verified by
such reasonable and confidential
documentation as the State
[[Page 123 STAT. 2988]]
law may require, which causes the
individual reasonably to believe that
such individual's continued employment
would jeopardize the safety of the
individual or of any member of the
individual's immediate family (as
defined by the Secretary of Labor).''.
(b) Effective <<NOTE: 42 USC 1103 note.>> Date.--The amendment made
by this section shall apply with respect to State applications submitted
on and after January 1, 2010.
SEC. 8. <<NOTE: 26 USC 3304 note.>> TREATMENT OF ADDITIONAL
REGULAR COMPENSATION.
The monthly equivalent of any additional compensation paid by reason
of section 2002 of the Assistance for Unemployed Workers and Struggling
Families Act, as contained in Public Law 111-5 (26 U.S.C. 3304 note; 123
Stat. 438) shall be disregarded after the date of the enactment of this
Act in considering the amount of income and assets of an individual for
purposes of determining such individual's eligibility for, or amount of,
benefits under the Supplemental Nutrition Assistance Program (SNAP).
SEC. 9. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER THE
RAILROAD UNEMPLOYMENT INSURANCE ACT.
(a) Benefits.--Section 2(c)(2)(D) of the Railroad Unemployment
Insurance Act, as added by section 2006 of the American Recovery and
Reinvestment Act of 2009 (Public Law 111-5), <<NOTE: Ante, p. 445.>> is
amended--
(1) in clause (iii)--
(A) by striking ``June 30, 2009'' and inserting
``June 30, 2010''; and
(B) by striking ``December 31, 2009'' and inserting
``December 31, 2010''; and
(2) by adding at the end of clause (iv) the following: ``In
addition to the amount appropriated by the preceding sentence,
out of any funds in the Treasury not otherwise appropriated,
there are appropriated $175,000,000 to cover the cost of
additional extended unemployment benefits provided under this
subparagraph, to remain available until expended.''.
(b) Administrative Expenses.--Section 2006 of division B of the
American Recovery and Reinvestment Act of 2009 (Public Law 111-5; 123
Stat. 445) is amended by adding at the end of subsection (b) the
following: ``In addition to funds appropriated by the preceding
sentence, out of any funds in the Treasury not otherwise appropriated,
there are appropriated to the Railroad Retirement Board $807,000 to
cover the administrative expenses associated with the payment of
additional extended unemployment benefits under section 2(c)(2)(D) of
the Railroad Unemployment Insurance Act, to remain available until
expended.''.
SEC. 10. 0.2 PERCENT FUTA SURTAX.
(a) In General.--Section 3301 of the Internal Revenue Code of
1986 <<NOTE: 26 USC 3301.>> (relating to rate of tax) is amended--
(1) by striking ``through 2009'' in paragraph (1) and
inserting ``through 2010 and the first 6 months of calendar year
2011'',
(2) by striking ``calendar year 2010'' in paragraph (2) and
inserting ``the remainder of calendar year 2011'', and
(3) by inserting ``(or portion of the calendar year)'' after
``during the calendar year''.
[[Page 123 STAT. 2989]]
(b) Effective <<NOTE: 26 USC 3301 note.>> Date.--The amendments made
by this section shall apply to wages paid after December 31, 2009.
SEC. 11. EXTENSION AND MODIFICATION OF FIRST-TIME HOMEBUYER TAX
CREDIT.
(a) Extension of Application Period.--
(1) In general.--Subsection (h) of section 36 of the
Internal Revenue Code of 1986 <<NOTE: 26 USC 36.>> is amended--
(A) by striking ``December 1, 2009'' and inserting
``May 1, 2010'',
(B) by striking ``Section.--This section'' and
inserting ``Section.--
``(1) In general.--This section'', and
(C) by adding at the end the following new
paragraph:
``(2) Exception in case of binding contract.--In the case of
any taxpayer who enters into a written binding contract before
May 1, 2010, to close on the purchase of a principal residence
before July 1, 2010, paragraph (1) shall be applied by
substituting `July 1, 2010' for `May 1, 2010'.''.
(2) Waiver of recapture.--
(A) In general.--Subparagraph (D) of section
36(f)(4) of such Code is amended by striking ``, and
before December 1, 2009''.
(B) Conforming amendment.--The heading of such
subparagraph (D) is amended by inserting ``and 2010''
after ``2009''.
(3) Election to treat purchase in prior year.--Subsection
(g) of section 36 of such Code is amended to read as follows:
``(g) Election To Treat Purchase in Prior Year.--In the case of a
purchase of a principal residence after December 31, 2008, a taxpayer
may elect to treat such purchase as made on December 31 of the calendar
year preceding such purchase for purposes of this section (other than
subsections (c), (f)(4)(D), and (h)).''.
(b) Special Rule for Long-time Residents of Same Principal
Residence.--Subsection (c) of section 36 of the Internal Revenue Code of
1986 is amended by adding at the end the following new paragraph:
``(6) Exception for long-time residents of same principal
residence.--In <<NOTE: Time period.>> the case of an individual
(and, if married, such individual's spouse) who has owned and
used the same residence as such individual's principal residence
for any 5-consecutive-year period during the 8-year period
ending on the date of the purchase of a subsequent principal
residence, such individual shall be treated as a first-time
homebuyer for purposes of this section with respect to the
purchase of such subsequent residence.''.
(c) Modification of Dollar and Income Limitations.--
(1) Dollar limitation.--Subsection (b)(1) of section 36 of
the Internal Revenue Code of 1986 is amended by adding at the
end the following new subparagraph:
``(D) Special rule for long-time residents of same
principal residence.--In <<NOTE: Applicability.>> the
case of a taxpayer to whom a credit under subsection (a)
is allowed by reason of subsection (c)(6), subparagraphs
(A), (B), and (C) shall be
[[Page 123 STAT. 2990]]
applied by substituting `$6,500' for `$8,000' and
`$3,250' for `$4,000'.''.
(2) Income limitation.--Subsection (b)(2)(A)(i)(II) of
section 36 of such Code is amended by striking ``$75,000
($150,000'' and inserting ``$125,000 ($225,000''.
(d) Limitation on Purchase Price of Residence.--Subsection (b) of
section 36 of the Internal Revenue Code of 1986 <<NOTE: 26 USC 36.>> is
amended by adding at the end the following new paragraph:
``(3) Limitation based on purchase price.--No credit shall
be allowed under subsection (a) for the purchase of any
residence if the purchase price of such residence exceeds
$800,000.''.
(e) Waiver of Recapture of First-time Homebuyer Credit for
Individuals on Qualified Official Extended Duty.--Paragraph (4) of
section 36(f) of the Internal Revenue Code of 1986 is amended by adding
at the end the following new subparagraph:
``(E) Special rule for members of the armed forces,
etc.--
``(i) In general.--In the case of the
disposition of a principal residence by an
individual (or a cessation referred to in
paragraph (2)) after December 31, 2008, in
connection with Government orders received by such
individual, or such individual's spouse, for
qualified official extended duty service--
``(I) paragraph (2) and subsection
(d)(2) shall not apply to such
disposition (or cessation), and
``(II) if such residence was
acquired before January 1, 2009,
paragraph (1) shall not apply to the
taxable year in which such disposition
(or cessation) occurs or any subsequent
taxable year.
``(ii) Qualified official extended duty
service.--For purposes of this section, the term
`qualified official extended duty service' means
service on qualified official extended duty as--
``(I) a member of the uniformed
services,
``(II) a member of the Foreign
Service of the United States, or
``(III) an employee of the
intelligence community.
``(iii) Definitions.--Any term used in this
subparagraph which is also used in paragraph (9)
of section 121(d) shall have the same meaning as
when used in such paragraph.''.
(f) Extension of First-time Homebuyer Credit for Individuals on
Qualified Official Extended Duty Outside the United States.--
(1) In general.--Subsection (h) of section 36 of the
Internal Revenue Code of 1986, as amended by subsection (a), is
amended by adding at the end the following:
``(3) Special <<NOTE: Applicability.>> rule for individuals
on qualified official extended duty outside the united states.--
In <<NOTE: Time period.>> the case of any individual who serves
on qualified official extended duty service (as defined in
section 121(d)(9)(C)(i)) outside the United States for at least
90 days during the period beginning after December 31, 2008, and
ending before May 1, 2010, and, if married, such individual's
spouse--
``(A) paragraphs (1) and (2) shall each be applied
by substituting `May 1, 2011' for `May 1, 2010', and
[[Page 123 STAT. 2991]]
``(B) paragraph (2) shall be applied by substituting
`July 1, 2011' for `July 1, 2010'.''.
(g) Dependents Ineligible for Credit.--Subsection (d) of section 36
of the Internal Revenue Code of 1986 <<NOTE: 26 USC 36.>> is amended by
striking ``or'' at the end of paragraph (1), by striking the period at
the end of paragraph (2) and inserting ``, or'', and by adding at the
end the following new paragraph:
``(3) a deduction under section 151 with respect to such
taxpayer is allowable to another taxpayer for such taxable
year.''.
(h) IRS Mathematical Error Authority.--Paragraph (2) of section
6213(g) of the Internal Revenue Code of <<NOTE: 26 USC 6213.>> 1986 is
amended--
(1) by striking ``and'' at the end of subparagraph (M),
(2) by striking the period at the end of subparagraph (N)
and inserting ``, and'', and
(3) by inserting after subparagraph (N) the following new
subparagraph:
``(O) an omission of any increase required under
section 36(f) with respect to the recapture of a credit
allowed under section 36.''.
(i) Coordination With First-time Homebuyer Credit for District of
Columbia.--Paragraph (4) of section 1400C(e) of the Internal Revenue
Code of 1986 <<NOTE: 26 USC 1400C.>> is amended by striking ``and before
December 1, 2009,''.
(j) Effective <<NOTE: Applicability.>> Dates.--
(1) In <<NOTE: 26 USC 36 note.>> general.--The amendments
made by subsections (b), (c), (d), and (g) shall apply to
residences purchased after the date of the enactment of this
Act.
(2) Extensions.--The <<NOTE: 26 USC 36 note.>> amendments
made by subsections (a), (f), and (i) shall apply to residences
purchased after November 30, 2009.
(3) Waiver <<NOTE: 26 USC 36 note.>> of recapture.--The
amendment made by subsection (e) shall apply to dispositions and
cessations after December 31, 2008.
(4) Mathematical <<NOTE: 26 USC 6213 note.>> error
authority.--The amendments made by subsection (h) shall apply to
returns for taxable years ending on or after April 9, 2008.
SEC. 12. PROVISIONS TO ENHANCE THE ADMINISTRATION OF THE FIRST-
TIME HOMEBUYER TAX CREDIT.
(a) Age Limitation.--
(1) In general.--Subsection (b) of section 36 of the
Internal Revenue Code of 1986, as amended by this <<NOTE: 26 USC
36.>> Act, is amended by adding at the end the following new
paragraph:
``(4) Age limitation.--No credit shall be allowed under
subsection (a) with respect to the purchase of any residence
unless the taxpayer has attained age 18 as of the date of such
purchase. In the case of any taxpayer who is married (within the
meaning of section 7703), the taxpayer shall be treated as
meeting the age requirement of the preceding sentence if the
taxpayer or the taxpayer's spouse meets such age requirement.''.
(2) Conforming amendment.--Subsection (g) of section 36 of
such Code, as amended by this Act, is amended by inserting
``(b)(4),'' before ``(c)''.
(b) Documentation Requirement.--Subsection (d) of section 36 of the
Internal Revenue Code of 1986, as amended by this
[[Page 123 STAT. 2992]]
Act, is amended by striking ``or'' at the end of paragraph (2), by
striking the period at the end of paragraph (3) and inserting ``, or'',
and by adding at the end the following new paragraph:
``(4) the taxpayer fails to attach to the return of tax for
such taxable year a properly executed copy of the settlement
statement used to complete such purchase.''.
(c) Restriction on Married Individual Acquiring Residence From
Family of Spouse.--Clause (i) of section 36(c)(3)(A) of the Internal
Revenue Code of 1986 <<NOTE: 26 USC 36.>> is amended by inserting ``(or,
if married, such individual's spouse)'' after ``person acquiring such
property''.
(d) Certain Errors With Respect to the First-time Homebuyer Tax
Credit Treated as Mathematical or Clerical Errors.--Paragraph (2) of
section 6213(g) the Internal Revenue Code of 1986, as amended by this
Act, is <<NOTE: 26 USC 6213.>> amended by striking ``and'' at the end of
subparagraph (N), by striking the period at the end of subparagraph (O)
and inserting ``, and'', and by inserting after subparagraph (O) the
following new subparagraph:
``(P) an entry on a return claiming the credit under
section 36 if--
``(i) the Secretary obtains information from
the person issuing the TIN of the taxpayer that
indicates that the taxpayer does not meet the age
requirement of section 36(b)(4),
``(ii) information provided to the Secretary
by the taxpayer on an income tax return for at
least one of the 2 preceding taxable years is
inconsistent with eligibility for such credit, or
``(iii) the taxpayer fails to attach to the
return the form described in section 36(d)(4).''.
(e) Effective <<NOTE: Applicability. 26 USC 36 note.>> Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
purchases after the date of the enactment of this Act.
(2) Documentation requirement.--The amendments made by
subsection (b) shall apply to returns for taxable years ending
after the date of the enactment of this Act.
(3) Treatment as mathematical and clerical errors.--The
amendments made by subsection (d) shall apply to returns for
taxable years ending on or after April 9, 2008.
SEC. 13. 5-YEAR CARRYBACK OF OPERATING LOSSES.
(a) In General.--Subparagraph (H) of section 172(b)(1) of the
Internal Revenue Code of 1986 <<NOTE: 26 USC 172.>> is amended to read
as follows:
``(H) Carryback for 2008 or 2009 net operating
losses.--
``(i) In <<NOTE: Applicability.>> general.--In
the case of an applicable net operating loss with
respect to which the taxpayer has elected the
application of this subparagraph--
``(I) subparagraph (A)(i) shall be
applied by substituting any whole number
elected by the taxpayer which is more
than 2 and less than 6 for `2',
``(II) subparagraph (E)(ii) shall be
applied by substituting the whole number
which is one less than the whole number
substituted under subclause (I) for `2',
and
[[Page 123 STAT. 2993]]
``(III) subparagraph (F) shall not
apply.
``(ii) Applicable <<NOTE: Definition. Time
period.>> net operating loss.--For purposes of
this subparagraph, the term `applicable net
operating loss' means the taxpayer's net operating
loss for a taxable year ending after December 31,
2007, and beginning before January 1, 2010.
``(iii) Election.--
``(I) In general.--Any election
under this subparagraph may be made only
with respect to 1 taxable year.
``(II) Procedure.--Any election
under this subparagraph shall be made in
such manner as may be prescribed by the
Secretary, and shall be made by the due
date (including extension of time) for
filing the return for the taxpayer's
last taxable year beginning in 2009. Any
such election, once made, shall be
irrevocable.
``(iv) Limitation on amount of loss carryback
to 5th preceding taxable year.--
``(I) In general.--The amount of any
net operating loss which may be carried
back to the 5th taxable year preceding
the taxable year of such loss under
clause (i) shall not exceed 50 percent
of the taxpayer's taxable income
(computed without regard to the net
operating loss for the loss year or any
taxable year thereafter) for such
preceding taxable year.
``(II) Carrybacks and carryovers to
other taxable years.--Appropriate
adjustments in the application of the
second sentence of paragraph (2) shall
be made to take into account the
limitation of subclause (I).
``(III) Exception for 2008 elections
by small businesses.--Subclause (I)
shall not apply to any loss of an
eligible small business with respect to
any election made under this
subparagraph as in effect on the day
before the date of the enactment of the
Worker, Homeownership, and Business
Assistance Act of 2009.
``(v) Special rules for small business.--
``(I) In general.--In the case of an
eligible small business which made or
makes an election under this
subparagraph as in effect on the day
before the date of the enactment of the
Worker, Homeownership, and Business
Assistance Act of 2009, clause (iii)(I)
shall be applied by substituting `2
taxable years' for `1 taxable year'.
``(II) Eligible small business.--For
purposes of this subparagraph, the term
`eligible small business' has the
meaning given such term by subparagraph
(F)(iii), except that in applying such
subparagraph, section 448(c) shall be
applied by substituting `$15,000,000'
for `$5,000,000' each place it
appears.''.
(b) Alternative Tax Net Operating Loss Deduction.--Subclause (I) of
section 56(d)(1)(A)(ii)of the Internal Revenue Code of 1986 <<NOTE: 26
USC 56.>> is amended to read as follows:
[[Page 123 STAT. 2994]]
``(I) the amount of such deduction
attributable to an applicable net
operating loss with respect to which an
election is made under section
172(b)(1)(H), or''.
(c) Loss From Operations of Life Insurance Companies.--Subsection
(b) of section 810 of the Internal Revenue Code of 1986 is amended by
adding <<NOTE: 26 USC 810.>> at the end the following new paragraph:
``(4) Carryback for 2008 or 2009 losses.--
``(A) In <<NOTE: Applicability.>> general.--In the
case of an applicable loss from operations with respect
to which the taxpayer has elected the application of
this paragraph, paragraph (1)(A) shall be applied by
substituting any whole number elected by the taxpayer
which is more than 3 and less than 6 for `3'.
``(B) Applicable <<NOTE: Definition. Time
period.>> loss from operations.--For purposes of this
paragraph, the term `applicable loss from operations'
means the taxpayer's loss from operations for a taxable
year ending after December 31, 2007, and beginning
before January 1, 2010.
``(C) Election.--
``(i) In general.--Any election under this
paragraph may be made only with respect to 1
taxable year.
``(ii) Procedure.--Any election under this
paragraph shall be made in such manner as may be
prescribed by the Secretary, and shall be made by
the due date (including extension of time) for
filing the return for the taxpayer's last taxable
year beginning in 2009. Any such election, once
made, shall be irrevocable.
``(D) Limitation on amount of loss carryback to 5th
preceding taxable year.--
``(i) In general.--The amount of any loss from
operations which may be carried back to the 5th
taxable year preceding the taxable year of such
loss under subparagraph (A) shall not exceed 50
percent of the taxpayer's taxable income (computed
without regard to the loss from operations for the
loss year or any taxable year thereafter) for such
preceding taxable year.
``(ii) Carrybacks and carryovers to other
taxable years.--Appropriate adjustments in the
application of the second sentence of paragraph
(2) shall be made to take into account the
limitation of clause (i).''.
(d) Anti-abuse <<NOTE: 26 USC 172 note.>> Rules.--The Secretary of
Treasury or the Secretary's designee shall prescribe such rules as are
necessary to prevent the abuse of the purposes of the amendments made by
this section, including anti-stuffing rules, anti-churning rules
(including rules relating to sale-leasebacks), and rules similar to the
rules under section 1091 of the Internal Revenue Code of 1986 relating
to losses from wash sales.
(e) Effective <<NOTE: Applicability. 26 USC 56 note.>> Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
net operating losses arising in taxable years ending after
December 31, 2007.
[[Page 123 STAT. 2995]]
(2) Alternative tax net operating loss deduction.--The
amendment made by subsection (b) shall apply to taxable years
ending after December 31, 2002.
(3) Loss from operations of life insurance companies.--The
amendment made by subsection (d) shall apply to losses from
operations arising in taxable years ending after December 31,
2007.
(4) Transitional rule.--In the case of any net operating
loss (or, in the case of a life insurance company, any loss from
operations) for a taxable year ending before the date of the
enactment of this Act--
(A) any election made under section 172(b)(3) or
810(b)(3) of the Internal Revenue Code of 1986 with
respect to such loss may (notwithstanding such section)
be revoked before the due date (including extension of
time) for filing the return for the taxpayer's last
taxable year beginning in 2009, and
(B) any application under section 6411(a) of such
Code with respect to such loss shall be treated as
timely filed if filed before such due date.
(f) Exception <<NOTE: 26 USC 56 note.>> for TARP Recipients.--The
amendments made by this section shall not apply to--
(1) any taxpayer if--
(A) the Federal Government acquired before the date
of the enactment of this Act an equity interest in the
taxpayer pursuant to the Emergency Economic
Stabilization Act of 2008,
(B) the Federal Government acquired before such date
of enactment any warrant (or other right) to acquire any
equity interest with respect to the taxpayer pursuant to
the Emergency Economic Stabilization Act of 2008, or
(C) such taxpayer receives after such date of
enactment funds from the Federal Government in exchange
for an interest described in subparagraph (A) or (B)
pursuant to a program established under title I of
division A of the Emergency Economic Stabilization Act
of 2008 (unless such taxpayer is a financial institution
(as defined in section 3 of such Act) and the funds are
received pursuant to a program established by the
Secretary of the Treasury for the stated purpose of
increasing the availability of credit to small
businesses using funding made available under such Act),
or
(2) the Federal National Mortgage Association and the
Federal Home Loan Mortgage Corporation, and
(3) any taxpayer which at any time in 2008 or 2009 was or is
a member of the same affiliated group (as defined in section
1504 of the Internal Revenue Code of 1986, determined without
regard to subsection (b) thereof) as a taxpayer described in
paragraph (1) or (2).
SEC. 14. EXCLUSION FROM GROSS INCOME OF QUALIFIED MILITARY BASE
REALIGNMENT AND CLOSURE FRINGE.
(a) In General.--Subsection (n) of section 132 of the Internal
Revenue Code <<NOTE: 26 USC 132.>> of 1986 is amended--
(1) in subparagraph (1) by striking ``this subsection) to
offset the adverse effects on housing values as a result of
[[Page 123 STAT. 2996]]
a military base realignment or closure'' and inserting ``the
American Recovery and Reinvestment Tax Act of 2009)'', and
(2) in subparagraph (2) by striking ``clause (1) of''.
(b) Effective <<NOTE: 26 USC 132 note.>> Date.--The amendments made
by this act shall apply to payments made after February 17, 2009.
SEC. 15. DELAY IN APPLICATION OF WORLDWIDE ALLOCATION OF INTEREST.
(a) In General.--Paragraphs (5)(D) and (6) of section 864(f) of the
Internal Revenue Code of <<NOTE: 26 USC 864.>> 1986 are each amended by
striking ``December 31, 2010'' and inserting ``December 31, 2017''.
(b) Conforming Amendment.--Section 864(f) of the Internal Revenue
Code of 1986 is amended by striking paragraph (7).
(c) Effective <<NOTE: 26 USC 864 note.>> Dates.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2010.
SEC. 16. INCREASE IN PENALTY FOR FAILURE TO FILE A PARTNERSHIP OR
S CORPORATION RETURN.
(a) In General.--Sections 6698(b)(1) and 6699(b)(1) of the Internal
Revenue Code of 1986 <<NOTE: 26 USC 6698, 6699.>> are each amended by
striking ``$89'' and inserting ``$195''.
(b) Effective <<NOTE: 26 USC 6698 note.>> Date.--The amendments made
by this section shall apply to returns for taxable years beginning after
December 31, 2009.
SEC. 17. CERTAIN TAX RETURN PREPARERS REQUIRED TO FILE RETURNS
ELECTRONICALLY.
(a) In General.--Subsection (e) of section 6011 of the Internal
Revenue Code of <<NOTE: 26 USC 6011.>> 1986 is amended by adding at the
end the following new paragraph:
``(3) Special rule for tax return preparers.--
``(A) In general.--The Secretary shall require than
any individual income tax return prepared by a tax
return preparer be filed on magnetic media if--
``(i) such return is filed by such tax return
preparer, and
``(ii) such tax return preparer is a specified
tax return preparer for the calendar year during
which such return is filed.
``(B) Specified tax return preparer.--For purposes
of this paragraph, the term `specified tax return
preparer' means, with respect to any calendar year, any
tax return preparer unless such preparer reasonably
expects to file 10 or fewer individual income tax
returns during such calendar year.
``(C) Individual income tax return.--For purposes of
this paragraph, the term `individual income tax return'
means any return of the tax imposed by subtitle A on
individuals, estates, or trusts.''.
(b) Conforming Amendment.--Paragraph (1) of section 6011(e) of the
Internal Revenue Code of 1986 is amended by striking ``The Secretary may
not'' and inserting ``Except as provided in paragraph (3), the Secretary
may not''.
(c) Effective <<NOTE: 26 USC 6011 note.>> Date.--The amendments made
by this section shall apply to returns filed after December 31, 2010.
[[Page 123 STAT. 2997]]
SEC. 18. <<NOTE: 26 USC 6655 note.>> TIME FOR PAYMENT OF CORPORATE
ESTIMATED TAXES.
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 33.0 percentage points.
Approved November 6, 2009.
LEGISLATIVE HISTORY--H.R. 3548:
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CONGRESSIONAL RECORD, Vol. 155 (2009):
Sept. 22, considered and passed House.
Oct. 29, Nov. 2-4, considered and passed Senate, amended.
Nov. 5, House concurred in Senate amendment.
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