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SA 3692. Mr. LOTT submitted an amendment intended to be proposed to amendment SA 3500 proposed by Mr. Harkin (for himself, Mr. Chambliss, Mr. Baucus, and Mr. Grassley) to the bill H.R. 2419, to provide for the continuation of agricultural programs through fiscal year 2012, and for other purposes; which was ordered to lie on the table; as follows:
On page 1587, after line 18, add the following:
Subtitle G--Temporary Repeal of Individual AMT
SEC. 12701. TEMPORARY REPEAL OF INDIVIDUAL ALTERNATIVE MINIMUM TAX.
(a) In General.--Section 55(a) (relating to alternative minimum tax imposed) is amended by adding at the end the following new flush sentence:
``For purposes of this title, the tentative minimum tax on any taxpayer other than a corporation for any taxable year beginning after December 31, 2006, and before January 1, 2009, shall be zero.''.
(b) Modification of Limitation on Use of Credit for Prior Year Minimum Tax Liability.--Subsection (c) of section 53 (relating to credit for prior year minimum tax liability) is amended to read as follows:
``(c) Limitation.--
``(1) IN GENERAL.--Except as provided in paragraph (2), the credit allowable under subsection (a) for any taxable year shall not exceed the excess (if any) of--
``(A) the regular tax liability of the taxpayer for such taxable year reduced by the sum of the credits allowable under subparts A, B, D, E, and F of this part, over
``(B) the tentative minimum tax for the taxable year.
``(2) TAXABLE YEARS BEGINNING AFTER 2006 AND BEFORE 2009.--In the case of any taxable year beginning after 2006 and before 2009, the credit allowable under subsection (a) to a taxpayer other than a corporation for any taxable year shall not exceed 90 percent of the regular tax liability of the taxpayer for such taxable year reduced by the sum of the credits allowable under subparts A, B, D, E, and F of this part.''.
(c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2006.
Subtitle H--Extension of Certain Expiring Provisions Through 2009
SEC. 12801. RESEARCH CREDIT.
(a) In General.--Subparagraph (B) of section 41(h)(1) (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Conforming Amendment.--Subparagraph (D) of section 45C(b)(1) (relating to qualified clinical testing expenses) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(c) Effective Date.--The amendments made by this section shall apply to amounts paid or incurred after December 31, 2007.
SEC. 12802. INDIAN EMPLOYMENT CREDIT.
(a) In General.--Subsection (f) of section 45A (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2007.
SEC. 12803. NEW MARKETS TAX CREDIT.
Subparagraph (D) of section 45D(f)(1) (relating to national limitation on amount of investments designated) is amended by striking ``and 2008'' and inserting ``2008, and 2009''.
SEC. 12804. RAILROAD TRACK MAINTENANCE.
(a) In General.--Subsection (f) of section 45G (relating to application of section) is amended by striking ``January 1, 2008'' and inserting ``January 1, 2010''.
(b) Effective Date.--The amendment made by this section shall apply to expenditures paid or incurred during taxable years beginning after December 31, 2007.
SEC. 12805. MORTGAGE INSURANCE PREMIUMS TREATED AS INTEREST.
(a) In General.--Subclause (I) of section 163(h)(3)(E)(iv) (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to amounts paid or accrued after December 31, 2007.
SEC. 12806. DEDUCTION FOR STATE AND LOCAL SALES TAXES.
(a) In General.--Subparagraph (I) of section 164(b)(5) is amended by striking ``January 1, 2008'' and inserting ``January 1, 2010''.
(b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2007.
SEC. 12807. FIFTEEN-YEAR STRAIGHT-LINE COST RECOVERY FOR QUALIFIED LEASEHOLD IMPROVEMENTS AND QUALIFIED RESTAURANT PROPERTY.
(a) In General.--Clauses (iv) and (v) of section 168(e)(3)(E) (relating to 15-year property) are each amended by striking ``January 1, 2008'' and inserting ``January 1, 2010''.
(b) Effective Date.--The amendments made by this section shall apply to property placed in service after December 31, 2007.
SEC. 12808. SEVEN-YEAR COST RECOVERY PERIOD FOR MOTORSPORTS RACING TRACK FACILITY.
(a) In General.--Subparagraph (D) of section 168(i)(15) (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to property placed in service after December 31, 2007.
SEC. 12809. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY ON INDIAN RESERVATION.
(a) In General.--Paragraph (8) of section 168(j) (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to property placed in service after December 31, 2007.
SEC. 12810. EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.
(a) In General.--Subsection (h) of section 198 (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to expenditures paid or incurred after December 31, 2007.
SEC. 12811. DEDUCTION ALLOWABLE WITH RESPECT TO INCOME ATTRIBUTABLE TO DOMESTIC PRODUCTION ACTIVITIES IN PUERTO RICO.
(a) In General.--Subparagraph (C) of section 199(d)(8) (relating to termination) is amended--
(1) by striking ``first 2 taxable years'' and inserting ``first 4 taxable years'', and
(2) by striking ``January 1, 2008'' and inserting ``January 1, 2010''.
(b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2007.
SEC. 12812. DEDUCTION OF QUALIFIED TUITION AND RELATED EXPENSES.
(a) In General.--Subsection (e) of section 222 (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2007.
SEC. 12813. MODIFICATION OF TAX TREATMENT OF CERTAIN PAYMENTS TO CONTROLLING EXEMPT ORGANIZATIONS.
(a) In General.--Clause (iv) of section 512(b)(13)(E) (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to payments received or accrued after December 31, 2007.
SEC. 12814. TREATMENT OF CERTAIN DIVIDENDS OF REGULATED INVESTMENT COMPANIES.
(a) Interest-Related Dividends.--Subparagraph (C) of section 871(k)(1) (defining interest-related dividend) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Short-Term Capital Gain Dividends.--Subparagraph (C) of section 871(k)(2) (defining short-term capital gain dividend) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(c) Effective Date.--The amendments made by this section shall apply to dividends with respect to taxable years of regulated investment companies beginning after December 31, 2007.
SEC. 12815. EXTENSION AND MODIFICATION OF CREDIT TO HOLDERS OF QUALIFIED ZONE ACADEMY BONDS.
(a) In General.--Subsection (e) of section 1397E (relating to limitation on amount of bonds designated) is amended by striking ``1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, and 2007'' and inserting ``each of calendar years 1998 through 2009''.
(b) Modification of Arbitrage Rules.--
(1) IN GENERAL.--Subsection (g) of section 1397E (relating to special rules relating to arbitrage) is amended to read as follows:
``(g) Special Rules Relating to Arbitrage.--
``(1) IN GENERAL.--An issue shall be treated as meeting the requirements of this subsection if the issuer satisfies the requirements of section 148 with respect to the proceeds of the issue.
``(2) SPECIAL RULE FOR INVESTMENTS DURING EXPENDITURE PERIOD.--An issue shall not be treated as failing to meet the requirements of paragraph (1) by reason of any investment of available project proceeds during the 5-year period described in subsection (f)(1)(A) (including any extension of such period under subsection (f)(2)).
``(3) SPECIAL RULE FOR RESERVE FUNDS.--An issue shall not be treated as failing to meet the requirements of paragraph (1) by reason of any fund which is expected to be used to repay such issue if--
``(A) such fund is funded at a rate not more rapid than equal annual installments,
``(B) such fund is funded in a manner that such fund will not exceed the amount necessary to repay the issue if invested at the maximum rate permitted under subparagraph (C), and
``(C) the yield on such fund is not greater than the discount rate determined under subsection (d)(3) with respect to the issue.''.
(2) APPLICATION OF AVAILABLE PROJECT PROCEEDS TO OTHER REQUIREMENTS.--Subsections (d)(1)(A), (d)(2)(A), (f)(1)(A), (f)(1)(B), (f)(1)(C), and (f)(3) of section 1397E are each amended by striking ``proceeds'' and inserting ``available project proceeds''
(3) AVAILABLE PROJECT PROCEEDS DEFINED.--Subsection (i) of section 1397E (relating to definitions) is amended by adding at the end the following new paragraph:
``(4) AVAILABLE PROJECT PROCEEDS.--The term `available project proceeds' means--
``(A) the excess of--
``(i) the proceeds from the sale of an issue, over
``(ii) the issuance costs financed by the issue (to the extent that such costs do not exceed 2 percent of such proceeds), and
``(B) the proceeds from any investment of the excess described in subparagraph (A).''.
(c) Effective Date.--
(1) EXTENSION.--The amendment made by subsection (a) shall apply to obligations issued after December 31, 2007.
(2) MODIFICATION OF ARBITRAGE RULES.--The amendments made by subsection (b) shall apply to obligations issued after the date of the enactment of this Act.
SEC. 12816. TAX INCENTIVES FOR INVESTMENT IN THE DISTRICT OF COLUMBIA.
(a) Designation of Zone.--
(1) IN GENERAL.--Subsection (f) of section 1400 is amended by striking ``2007'' both places it appears and inserting ``2009''.
(2) EFFECTIVE DATE.--The amendments made by this subsection shall apply to periods beginning after December 31, 2007.
(b) Tax-Exempt Economic Development Bonds.--
(1) IN GENERAL.--Subsection (b) of section 1400A is amended by striking ``2007'' and inserting ``2009''.
(2) EFFECTIVE DATE.--The amendment made by this subsection shall apply to bonds issued after December 31, 2007.
(c) Zero Percent Capital Gains Rate.--
(1) IN GENERAL.--Subsection (b) of section 1400B is amended by striking ``2008'' each place it appears and inserting ``2010''.
(2) CONFORMING AMENDMENTS.--
(A) Section 1400B(e)(2) is amended--
(i) by striking ``2012'' and inserting ``2014'', and
(ii) by striking ``2012'' in the heading thereof and inserting ``2014''.
(B) Section 1400B(g)(2) is amended by striking ``2012'' and inserting ``2014''.
(C) Section 1400F(d) is amended by striking ``2012'' and inserting ``2014''.
(3) EFFECTIVE DATES.--
(A) EXTENSION.--The amendments made by paragraph (1) shall apply to acquisitions after December 31, 2007.
(B) CONFORMING AMENDMENTS.--The amendments made by paragraph (2) shall take effect on the date of the enactment of this Act.
(d) First-Time Homebuyer Credit.--
(1) IN GENERAL.--Subsection (i) of section 1400C is amended by striking ``2008'' and inserting ``2010''.
(2) EFFECTIVE DATE.--The amendment made by this subsection shall apply to property purchased after December 31, 2007.
SEC. 12817. DISCLOSURE FOR COMBINED EMPLOYMENT TAX REPORTING.
(a) In General.--Subparagraph (B) of section 6103(d)(5) (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to disclosures after December 31, 2007.
SEC. 12818. DISCLOSURE OF RETURN INFORMATION TO APPRISE APPROPRIATE OFFICIALS OF TERRORIST ACTIVITIES.
(a) In General.--Clause (iv) of section 6103(i)(3)(C) (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to disclosures after December 31, 2007.
SEC. 12819. DISCLOSURE UPON REQUEST OF INFORMATION RELATING TO TERRORIST ACTIVITIES.
(a) In General.--Subparagraph (E) of section 6103(i)(7) (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to disclosures after December 31, 2007.
SEC. 12820. DISCLOSURE OF RETURN INFORMATION TO CARRY OUT INCOME CONTINGENT REPAYMENT OF STUDENT LOANS.
(a) In General.--Subparagraph (D) of section 6103(l)(13) (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to requests made after December 31, 2007.
SEC. 12821. AUTHORITY FOR UNDERCOVER OPERATIONS.
(a) In General.--Paragraph (6) of section 7608(c) (relating to application of section) is amended by striking ``January 1, 2008'' each place it appears and inserting ``January 1, 2010''.
(b) Effective Date.--The amendment made by this section shall take effect on January 1, 2008.
SEC. 12822. INCREASE IN LIMIT ON COVER OVER OF RUM EXCISE TAX TO PUERTO RICO AND THE VIRGIN ISLANDS.
(a) In General.--Paragraph (1) of section 7652(f) is amended by striking ``January 1, 2008'' and inserting ``January 1, 2010''.
(b) Effective Date.--The amendment made by this section shall apply to distilled spirits brought into the United States after December 31, 2007.
SEC. 12823. PARITY IN THE APPLICATION OF CERTAIN LIMITS TO MENTAL HEALTH BENEFITS.
(a) In General.--Paragraph (3) of section 9812(f) (relating to application of section) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to benefits for services furnished after December 31, 2007.
SEC. 12824. EXTENSION OF ECONOMIC DEVELOPMENT CREDIT FOR AMERICAN SAMOA.
(a) In General.--Subsection (d) of section 119 of division A of the Tax Relief and Health Care Act of 2006 is amended--
(1) by striking ``first two taxable years'' and inserting ``first 4 taxable years'', and
(2) by striking ``January 1, 2008'' and inserting ``January 1, 2010''.
(b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2007.
SEC. 12825. QUALIFIED CONSERVATION CONTRIBUTIONS.
(a) In General.--Clause (vi) of section 170(b)(1)(E) (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to contributions made in taxable years beginning after December 31, 2007.
SEC. 12826. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF FOOD INVENTORY.
(a) In General.--Clause (iv) of section 170(e)(3)(C) (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to contributions made after December 31, 2007.
SEC. 12827. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF BOOK INVENTORY TO PUBLIC SCHOOLS.
(a) In General.--Clause (iv) of section 170(e)(3)(D) (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to contributions made after December 31, 2007.
SEC. 12828. ENHANCED DEDUCTION FOR QUALIFIED COMPUTER CONTRIBUTIONS.
(a) In General.--Subparagraph (G) of section 170(e)(6) (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to contributions made during taxable years beginning after December 31, 2007.
SEC. 12829. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT PLANS FOR CHARITABLE PURPOSES.
(a) In General.--Subparagraph (F) of section 408(d)(8) (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to distributions made in taxable years beginning after December 31, 2007.
SEC. 12830. BASIS ADJUSTMENT TO STOCK OF S CORPORATIONS MAKING CHARITABLE CONTRIBUTIONS OF PROPERTY.
(a) In General.--The last sentence of section 1367(a)(2) (relating to decreases in basis) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Technical Amendment Related to Section 1203 of the Pension Protection Act of 2006.--Subsection (d) of section 1366 is amended by adding at the end the following new paragraph:
``(4) APPLICATION OF LIMITATION ON CHARITABLE CONTRIBUTIONS.--In the case of any charitable contribution of property to which the second sentence of section 1367(a)(2) applies, paragraph (1) shall not apply to the extent of the excess (if any) of--
``(A) the shareholder's pro rata share of such contribution, over
``(B) the shareholder's pro rata share of the adjusted basis of such property.''.
(c) Effective Date.--
(1) IN GENERAL.--Except as provided in paragraph (2), the amendments made by this section shall apply to contributions made in taxable years beginning after December 31, 2007.
(2) TECHNICAL AMENDMENT.--The amendment made by subsection (b)shall take effect as if included in the provision of the Pension Protection Act of 2006 to which it relates.
SEC. 12831. DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY AND SECONDARY SCHOOL TEACHERS.
(a) In General.--Subparagraph (D) of section 62(a)(2) (relating to certain expenses of elementary and secondary school teachers) is amended by striking ``or 2007'' and inserting ``2007, 2008, or 2009''.
(b) Effective Date.--The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2007.
SEC. 12832. ELECTION TO INCLUDE COMBAT PAY AS EARNED INCOME FOR PURPOSES OF EARNED INCOME TAX CREDIT.
(a) In General.--Subclause (II) of section 32(c)(2)(B)(vi) (defining earned income) is amended by striking ``January 1, 2008'' and inserting ``January 1, 2010''.
(b) Effective Date.--The amendment made by this section shall apply to taxable years ending after December 31, 2007.
SEC. 12833. MODIFICATION OF MORTGAGE REVENUE BONDS FOR VETERANS.
(a) Qualified Mortgage Bonds Used To Finance Residences for Veterans Without Regard to First-Time Homebuyer Requirement.--Subparagraph (D) of section 143(d)(2) (relating to exceptions) is amended by striking ``January 1, 2008'' and inserting ``January 1, 2010''.
(b) Effective Date.--The amendment made by this section shall apply to bonds issued after December 31, 2007.
SEC. 12834. DISTRIBUTIONS FROM RETIREMENT PLANS TO INDIVIDUALS CALLED TO ACTIVE DUTY.
(a) In General.--Clause (iv) of section 72(t)(2)(G) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to individuals ordered or called to active duty on or after December 31, 2007.
SEC. 12835. STOCK IN RIC FOR PURPOSES OF DETERMINING ESTATES OF NONRESIDENTS NOT CITIZENS.
(a) In General.--Paragraph (3) of section 2105(d) (relating to stock in a RIC) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to decedents dying after December 31, 2007.
SEC. 12836. QUALIFIED INVESTMENT ENTITIES.
(a) In General.--Clause (ii) of section 897(h)(4)(A) (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by subsection (a) shall take effect on January 1, 2008.
SEC. 12837. DISCLOSURE OF RETURN INFORMATION FOR CERTAIN VETERANS PROGRAMS.
(a) In General.--The last sentence of paragraph (7) of section 6103(l) is amended by striking ``September 30, 2008'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by subsection (a) shall apply to requests made after September 30, 2008.
SEC. 12838. RETURNS RELATING TO APPLICABLE INSURANCE CONTRACTS IN WHICH CERTAIN EXEMPT ORGANIZATIONS HOLD INTERESTS.
(a) In General.--Section 6050V(e) (relating to termination) is amended by striking ``the date which is 2 years after the date of the enactment of this section'' and insert ``December 31, 2009''.
(b) Effective Date.--The amendment made by subsection (a) shall apply to reportable acquisitions occurring after August 17, 2008.
SEC. 12839. MINE RESCUE TEAM TRAINING CREDIT.
(a) In General.--Section 45N(e) (relating to termination) is amended by striking ``December 31, 2008'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2008.
SEC. 12840. ELECTION TO EXPENSE ADVANCED MINE SAFETY EQUIPMENT.
(a) In General.--Section 179E(g) (relating to termination) is amended by striking ``December 31, 2008'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by subsection (a) shall apply to property placed in service after December 31, 2008.
SEC. 12841. TREATMENT OF CERTAIN QUALIFIED FILM AND TELEVISION PRODUCTIONS.
(a) In General.--Section 181(f) (relating to termination) is amended by striking ``December 31, 2008'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by subsection (a) shall apply to qualified film and television productions commencing after December 31, 2008.
SEC. 12842. CONTROLLED FOREIGN CORPORATIONS.
(a) Subpart F Exception for Active Financing.--
(1) EXEMPT INSURANCE INCOME.--Paragraph (10) of section 953(e) (relating to application) is amended--
(A) by striking ``January 1, 2009'' and inserting ``January 1, 2010'', and
(B) by striking ``December 31, 2008'' and inserting ``December 31, 2009''.
(2) EXCEPTION TO TREATMENT AS FOREIGN PERSONAL HOLDING COMPANY INCOME.--Paragraph (9) of section 954(h) (relating to application) is amended by striking ``January 1, 2009'' and inserting ``January 1, 2010''.
(b) Look-Through Treatment of Payments Between Related Controlled Foreign Corporations Under the Foreign Personal Holding Company Rules.--Subparagraph (B) of section 954(c)(6) (relating to application) is amended by striking ``January 1, 2009'' and inserting ``January 1, 2010''.
(c) Effective Date.--The amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2008, and to taxable years of United States shareholders with or within which such taxable years of foreign corporations end.
(As printed in the Congressional Record for the Senate on Nov 15, 2007.)
On page 1587, after line 18, add the following:
Subtitle G--Temporary Repeal of Individual AMT
SEC. 12701. TEMPORARY REPEAL OF INDIVIDUAL ALTERNATIVE MINIMUM TAX.
(a) In General.--Section 55(a) (relating to alternative minimum tax imposed) is amended by adding at the end the following new flush sentence:
``For purposes of this title, the tentative minimum tax on any taxpayer other than a corporation for any taxable year beginning after December 31, 2006, and before January 1, 2009, shall be zero.''.
(b) Modification of Limitation on Use of Credit for Prior Year Minimum Tax Liability.--Subsection (c) of section 53 (relating to credit for prior year minimum tax liability) is amended to read as follows:
``(c) Limitation.--
``(1) IN GENERAL.--Except as provided in paragraph (2), the credit allowable under subsection (a) for any taxable year shall not exceed the excess (if any) of--
``(A) the regular tax liability of the taxpayer for such taxable year reduced by the sum of the credits allowable under subparts A, B, D, E, and F of this part, over
``(B) the tentative minimum tax for the taxable year.
``(2) TAXABLE YEARS BEGINNING AFTER 2006 AND BEFORE 2009.--In the case of any taxable year beginning after 2006 and before 2009, the credit allowable under subsection (a) to a taxpayer other than a corporation for any taxable year shall not exceed 90 percent of the regular tax liability of the taxpayer for such taxable year reduced by the sum of the credits allowable under subparts A, B, D, E, and F of this part.''.
(c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2006.
Subtitle H--Extension of Certain Expiring Provisions Through 2009
SEC. 12801. RESEARCH CREDIT.
(a) In General.--Subparagraph (B) of section 41(h)(1) (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Conforming Amendment.--Subparagraph (D) of section 45C(b)(1) (relating to qualified clinical testing expenses) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(c) Effective Date.--The amendments made by this section shall apply to amounts paid or incurred after December 31, 2007.
SEC. 12802. INDIAN EMPLOYMENT CREDIT.
(a) In General.--Subsection (f) of section 45A (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2007.
SEC. 12803. NEW MARKETS TAX CREDIT.
Subparagraph (D) of section 45D(f)(1) (relating to national limitation on amount of investments designated) is amended by striking ``and 2008'' and inserting ``2008, and 2009''.
SEC. 12804. RAILROAD TRACK MAINTENANCE.
(a) In General.--Subsection (f) of section 45G (relating to application of section) is amended by striking ``January 1, 2008'' and inserting ``January 1, 2010''.
(b) Effective Date.--The amendment made by this section shall apply to expenditures paid or incurred during taxable years beginning after December 31, 2007.
SEC. 12805. MORTGAGE INSURANCE PREMIUMS TREATED AS INTEREST.
(a) In General.--Subclause (I) of section 163(h)(3)(E)(iv) (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to amounts paid or accrued after December 31, 2007.
SEC. 12806. DEDUCTION FOR STATE AND LOCAL SALES TAXES.
(a) In General.--Subparagraph (I) of section 164(b)(5) is amended by striking ``January 1, 2008'' and inserting ``January 1, 2010''.
(b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2007.
SEC. 12807. FIFTEEN-YEAR STRAIGHT-LINE COST RECOVERY FOR QUALIFIED LEASEHOLD IMPROVEMENTS AND QUALIFIED RESTAURANT PROPERTY.
(a) In General.--Clauses (iv) and (v) of section 168(e)(3)(E) (relating to 15-year property) are each amended by striking ``January 1, 2008'' and inserting ``January 1, 2010''.
(b) Effective Date.--The amendments made by this section shall apply to property placed in service after December 31, 2007.
SEC. 12808. SEVEN-YEAR COST RECOVERY PERIOD FOR MOTORSPORTS RACING TRACK FACILITY.
(a) In General.--Subparagraph (D) of section 168(i)(15) (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to property placed in service after December 31, 2007.
SEC. 12809. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY ON INDIAN RESERVATION.
(a) In General.--Paragraph (8) of section 168(j) (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to property placed in service after December 31, 2007.
SEC. 12810. EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.
(a) In General.--Subsection (h) of section 198 (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to expenditures paid or incurred after December 31, 2007.
SEC. 12811. DEDUCTION ALLOWABLE WITH RESPECT TO INCOME ATTRIBUTABLE TO DOMESTIC PRODUCTION ACTIVITIES IN PUERTO RICO.
(a) In General.--Subparagraph (C) of section 199(d)(8) (relating to termination) is amended--
(1) by striking ``first 2 taxable years'' and inserting ``first 4 taxable years'', and
(2) by striking ``January 1, 2008'' and inserting ``January 1, 2010''.
(b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2007.
SEC. 12812. DEDUCTION OF QUALIFIED TUITION AND RELATED EXPENSES.
(a) In General.--Subsection (e) of section 222 (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2007.
SEC. 12813. MODIFICATION OF TAX TREATMENT OF CERTAIN PAYMENTS TO CONTROLLING EXEMPT ORGANIZATIONS.
(a) In General.--Clause (iv) of section 512(b)(13)(E) (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to payments received or accrued after December 31, 2007.
SEC. 12814. TREATMENT OF CERTAIN DIVIDENDS OF REGULATED INVESTMENT COMPANIES.
(a) Interest-Related Dividends.--Subparagraph (C) of section 871(k)(1) (defining interest-related dividend) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Short-Term Capital Gain Dividends.--Subparagraph (C) of section 871(k)(2) (defining short-term capital gain dividend) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(c) Effective Date.--The amendments made by this section shall apply to dividends with respect to taxable years of regulated investment companies beginning after December 31, 2007.
SEC. 12815. EXTENSION AND MODIFICATION OF CREDIT TO HOLDERS OF QUALIFIED ZONE ACADEMY BONDS.
(a) In General.--Subsection (e) of section 1397E (relating to limitation on amount of bonds designated) is amended by striking ``1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, and 2007'' and inserting ``each of calendar years 1998 through 2009''.
(b) Modification of Arbitrage Rules.--
(1) IN GENERAL.--Subsection (g) of section 1397E (relating to special rules relating to arbitrage) is amended to read as follows:
``(g) Special Rules Relating to Arbitrage.--
``(1) IN GENERAL.--An issue shall be treated as meeting the requirements of this subsection if the issuer satisfies the requirements of section 148 with respect to the proceeds of the issue.
``(2) SPECIAL RULE FOR INVESTMENTS DURING EXPENDITURE PERIOD.--An issue shall not be treated as failing to meet the requirements of paragraph (1) by reason of any investment of available project proceeds during the 5-year period described in subsection (f)(1)(A) (including any extension of such period under subsection (f)(2)).
``(3) SPECIAL RULE FOR RESERVE FUNDS.--An issue shall not be treated as failing to meet the requirements of paragraph (1) by reason of any fund which is expected to be used to repay such issue if--
``(A) such fund is funded at a rate not more rapid than equal annual installments,
``(B) such fund is funded in a manner that such fund will not exceed the amount necessary to repay the issue if invested at the maximum rate permitted under subparagraph (C), and
``(C) the yield on such fund is not greater than the discount rate determined under subsection (d)(3) with respect to the issue.''.
(2) APPLICATION OF AVAILABLE PROJECT PROCEEDS TO OTHER REQUIREMENTS.--Subsections (d)(1)(A), (d)(2)(A), (f)(1)(A), (f)(1)(B), (f)(1)(C), and (f)(3) of section 1397E are each amended by striking ``proceeds'' and inserting ``available project proceeds''
(3) AVAILABLE PROJECT PROCEEDS DEFINED.--Subsection (i) of section 1397E (relating to definitions) is amended by adding at the end the following new paragraph:
``(4) AVAILABLE PROJECT PROCEEDS.--The term `available project proceeds' means--
``(A) the excess of--
``(i) the proceeds from the sale of an issue, over
``(ii) the issuance costs financed by the issue (to the extent that such costs do not exceed 2 percent of such proceeds), and
``(B) the proceeds from any investment of the excess described in subparagraph (A).''.
(c) Effective Date.--
(1) EXTENSION.--The amendment made by subsection (a) shall apply to obligations issued after December 31, 2007.
(2) MODIFICATION OF ARBITRAGE RULES.--The amendments made by subsection (b) shall apply to obligations issued after the date of the enactment of this Act.
SEC. 12816. TAX INCENTIVES FOR INVESTMENT IN THE DISTRICT OF COLUMBIA.
(a) Designation of Zone.--
(1) IN GENERAL.--Subsection (f) of section 1400 is amended by striking ``2007'' both places it appears and inserting ``2009''.
(2) EFFECTIVE DATE.--The amendments made by this subsection shall apply to periods beginning after December 31, 2007.
(b) Tax-Exempt Economic Development Bonds.--
(1) IN GENERAL.--Subsection (b) of section 1400A is amended by striking ``2007'' and inserting ``2009''.
(2) EFFECTIVE DATE.--The amendment made by this subsection shall apply to bonds issued after December 31, 2007.
(c) Zero Percent Capital Gains Rate.--
(1) IN GENERAL.--Subsection (b) of section 1400B is amended by striking ``2008'' each place it appears and inserting ``2010''.
(2) CONFORMING AMENDMENTS.--
(A) Section 1400B(e)(2) is amended--
(i) by striking ``2012'' and inserting ``2014'', and
(ii) by striking ``2012'' in the heading thereof and inserting ``2014''.
(B) Section 1400B(g)(2) is amended by striking ``2012'' and inserting ``2014''.
(C) Section 1400F(d) is amended by striking ``2012'' and inserting ``2014''.
(3) EFFECTIVE DATES.--
(A) EXTENSION.--The amendments made by paragraph (1) shall apply to acquisitions after December 31, 2007.
(B) CONFORMING AMENDMENTS.--The amendments made by paragraph (2) shall take effect on the date of the enactment of this Act.
(d) First-Time Homebuyer Credit.--
(1) IN GENERAL.--Subsection (i) of section 1400C is amended by striking ``2008'' and inserting ``2010''.
(2) EFFECTIVE DATE.--The amendment made by this subsection shall apply to property purchased after December 31, 2007.
SEC. 12817. DISCLOSURE FOR COMBINED EMPLOYMENT TAX REPORTING.
(a) In General.--Subparagraph (B) of section 6103(d)(5) (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to disclosures after December 31, 2007.
SEC. 12818. DISCLOSURE OF RETURN INFORMATION TO APPRISE APPROPRIATE OFFICIALS OF TERRORIST ACTIVITIES.
(a) In General.--Clause (iv) of section 6103(i)(3)(C) (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to disclosures after December 31, 2007.
SEC. 12819. DISCLOSURE UPON REQUEST OF INFORMATION RELATING TO TERRORIST ACTIVITIES.
(a) In General.--Subparagraph (E) of section 6103(i)(7) (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to disclosures after December 31, 2007.
SEC. 12820. DISCLOSURE OF RETURN INFORMATION TO CARRY OUT INCOME CONTINGENT REPAYMENT OF STUDENT LOANS.
(a) In General.--Subparagraph (D) of section 6103(l)(13) (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to requests made after December 31, 2007.
SEC. 12821. AUTHORITY FOR UNDERCOVER OPERATIONS.
(a) In General.--Paragraph (6) of section 7608(c) (relating to application of section) is amended by striking ``January 1, 2008'' each place it appears and inserting ``January 1, 2010''.
(b) Effective Date.--The amendment made by this section shall take effect on January 1, 2008.
SEC. 12822. INCREASE IN LIMIT ON COVER OVER OF RUM EXCISE TAX TO PUERTO RICO AND THE VIRGIN ISLANDS.
(a) In General.--Paragraph (1) of section 7652(f) is amended by striking ``January 1, 2008'' and inserting ``January 1, 2010''.
(b) Effective Date.--The amendment made by this section shall apply to distilled spirits brought into the United States after December 31, 2007.
SEC. 12823. PARITY IN THE APPLICATION OF CERTAIN LIMITS TO MENTAL HEALTH BENEFITS.
(a) In General.--Paragraph (3) of section 9812(f) (relating to application of section) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to benefits for services furnished after December 31, 2007.
SEC. 12824. EXTENSION OF ECONOMIC DEVELOPMENT CREDIT FOR AMERICAN SAMOA.
(a) In General.--Subsection (d) of section 119 of division A of the Tax Relief and Health Care Act of 2006 is amended--
(1) by striking ``first two taxable years'' and inserting ``first 4 taxable years'', and
(2) by striking ``January 1, 2008'' and inserting ``January 1, 2010''.
(b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2007.
SEC. 12825. QUALIFIED CONSERVATION CONTRIBUTIONS.
(a) In General.--Clause (vi) of section 170(b)(1)(E) (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to contributions made in taxable years beginning after December 31, 2007.
SEC. 12826. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF FOOD INVENTORY.
(a) In General.--Clause (iv) of section 170(e)(3)(C) (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to contributions made after December 31, 2007.
SEC. 12827. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF BOOK INVENTORY TO PUBLIC SCHOOLS.
(a) In General.--Clause (iv) of section 170(e)(3)(D) (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to contributions made after December 31, 2007.
SEC. 12828. ENHANCED DEDUCTION FOR QUALIFIED COMPUTER CONTRIBUTIONS.
(a) In General.--Subparagraph (G) of section 170(e)(6) (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to contributions made during taxable years beginning after December 31, 2007.
SEC. 12829. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT PLANS FOR CHARITABLE PURPOSES.
(a) In General.--Subparagraph (F) of section 408(d)(8) (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to distributions made in taxable years beginning after December 31, 2007.
SEC. 12830. BASIS ADJUSTMENT TO STOCK OF S CORPORATIONS MAKING CHARITABLE CONTRIBUTIONS OF PROPERTY.
(a) In General.--The last sentence of section 1367(a)(2) (relating to decreases in basis) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Technical Amendment Related to Section 1203 of the Pension Protection Act of 2006.--Subsection (d) of section 1366 is amended by adding at the end the following new paragraph:
``(4) APPLICATION OF LIMITATION ON CHARITABLE CONTRIBUTIONS.--In the case of any charitable contribution of property to which the second sentence of section 1367(a)(2) applies, paragraph (1) shall not apply to the extent of the excess (if any) of--
``(A) the shareholder's pro rata share of such contribution, over
``(B) the shareholder's pro rata share of the adjusted basis of such property.''.
(c) Effective Date.--
(1) IN GENERAL.--Except as provided in paragraph (2), the amendments made by this section shall apply to contributions made in taxable years beginning after December 31, 2007.
(2) TECHNICAL AMENDMENT.--The amendment made by subsection (b)shall take effect as if included in the provision of the Pension Protection Act of 2006 to which it relates.
SEC. 12831. DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY AND SECONDARY SCHOOL TEACHERS.
(a) In General.--Subparagraph (D) of section 62(a)(2) (relating to certain expenses of elementary and secondary school teachers) is amended by striking ``or 2007'' and inserting ``2007, 2008, or 2009''.
(b) Effective Date.--The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2007.
SEC. 12832. ELECTION TO INCLUDE COMBAT PAY AS EARNED INCOME FOR PURPOSES OF EARNED INCOME TAX CREDIT.
(a) In General.--Subclause (II) of section 32(c)(2)(B)(vi) (defining earned income) is amended by striking ``January 1, 2008'' and inserting ``January 1, 2010''.
(b) Effective Date.--The amendment made by this section shall apply to taxable years ending after December 31, 2007.
SEC. 12833. MODIFICATION OF MORTGAGE REVENUE BONDS FOR VETERANS.
(a) Qualified Mortgage Bonds Used To Finance Residences for Veterans Without Regard to First-Time Homebuyer Requirement.--Subparagraph (D) of section 143(d)(2) (relating to exceptions) is amended by striking ``January 1, 2008'' and inserting ``January 1, 2010''.
(b) Effective Date.--The amendment made by this section shall apply to bonds issued after December 31, 2007.
SEC. 12834. DISTRIBUTIONS FROM RETIREMENT PLANS TO INDIVIDUALS CALLED TO ACTIVE DUTY.
(a) In General.--Clause (iv) of section 72(t)(2)(G) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to individuals ordered or called to active duty on or after December 31, 2007.
SEC. 12835. STOCK IN RIC FOR PURPOSES OF DETERMINING ESTATES OF NONRESIDENTS NOT CITIZENS.
(a) In General.--Paragraph (3) of section 2105(d) (relating to stock in a RIC) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply to decedents dying after December 31, 2007.
SEC. 12836. QUALIFIED INVESTMENT ENTITIES.
(a) In General.--Clause (ii) of section 897(h)(4)(A) (relating to termination) is amended by striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by subsection (a) shall take effect on January 1, 2008.
SEC. 12837. DISCLOSURE OF RETURN INFORMATION FOR CERTAIN VETERANS PROGRAMS.
(a) In General.--The last sentence of paragraph (7) of section 6103(l) is amended by striking ``September 30, 2008'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by subsection (a) shall apply to requests made after September 30, 2008.
SEC. 12838. RETURNS RELATING TO APPLICABLE INSURANCE CONTRACTS IN WHICH CERTAIN EXEMPT ORGANIZATIONS HOLD INTERESTS.
(a) In General.--Section 6050V(e) (relating to termination) is amended by striking ``the date which is 2 years after the date of the enactment of this section'' and insert ``December 31, 2009''.
(b) Effective Date.--The amendment made by subsection (a) shall apply to reportable acquisitions occurring after August 17, 2008.
SEC. 12839. MINE RESCUE TEAM TRAINING CREDIT.
(a) In General.--Section 45N(e) (relating to termination) is amended by striking ``December 31, 2008'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2008.
SEC. 12840. ELECTION TO EXPENSE ADVANCED MINE SAFETY EQUIPMENT.
(a) In General.--Section 179E(g) (relating to termination) is amended by striking ``December 31, 2008'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by subsection (a) shall apply to property placed in service after December 31, 2008.
SEC. 12841. TREATMENT OF CERTAIN QUALIFIED FILM AND TELEVISION PRODUCTIONS.
(a) In General.--Section 181(f) (relating to termination) is amended by striking ``December 31, 2008'' and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by subsection (a) shall apply to qualified film and television productions commencing after December 31, 2008.
SEC. 12842. CONTROLLED FOREIGN CORPORATIONS.
(a) Subpart F Exception for Active Financing.--
(1) EXEMPT INSURANCE INCOME.--Paragraph (10) of section 953(e) (relating to application) is amended--
(A) by striking ``January 1, 2009'' and inserting ``January 1, 2010'', and
(B) by striking ``December 31, 2008'' and inserting ``December 31, 2009''.
(2) EXCEPTION TO TREATMENT AS FOREIGN PERSONAL HOLDING COMPANY INCOME.--Paragraph (9) of section 954(h) (relating to application) is amended by striking ``January 1, 2009'' and inserting ``January 1, 2010''.
(b) Look-Through Treatment of Payments Between Related Controlled Foreign Corporations Under the Foreign Personal Holding Company Rules.--Subparagraph (B) of section 954(c)(6) (relating to application) is amended by striking ``January 1, 2009'' and inserting ``January 1, 2010''.
(c) Effective Date.--The amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2008, and to taxable years of United States shareholders with or within which such taxable years of foreign corporations end.
(As printed in the Congressional Record for the Senate on Nov 15, 2007.)
