SA 4498. Mr. BUNNING submitted an amendment intended to be proposed to amendment SA 4395 submitted by Mr. Bunning and intended to be proposed to the amendment SA 4387 proposed by Mr. Dodd (for himself and Mr. Shelby) to the bill H.R. 3221, moving the United States toward greater energy independence and security, developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production, and
modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation; which was ordered to lie on the table; as follows:


In lieu of the matter proposed to be inserted, insert the following:
SEC. __X. DEDUCTION FOR POINTS ON HOME MORTGAGE REFINANCING ALLOWED IN YEAR PAID.
(a) Deduction.--
(1) IN GENERAL.--Paragraph (2) of section 461(g) of the Internal Revenue Code of 1986 (relating to prepaid interest) is amended--
(A) by striking ``This subsection'' and inserting the following:
``(A) IN GENERAL.--This subsection'', and
(B) by adding at the end the following new subparagraph:
``(B) EXCEPTION FOR CERTAIN REFINANCINGS.--
``(i) IN GENERAL.--This subsection shall not apply to points paid--
``(I) in respect of indebtedness secured by such residence resulting from the refinancing of indebtedness meeting the requirements of the subparagraph (A), and
``(II) before January 1, 2011.
``(ii) LIMITATION.--Clause (i) shall apply only to the extent the amount of the indebtedness resulting from such refinancing does not exceed the sum of--
``(I) the amount of the refinanced indebtedness, plus
``(II) the lesser of $10,000 or the points paid in respect of the indebtedness resulting from the refinancing to the extent that the indebtedness resulting from the refinancing does not exceed the refinanced indebtedness.
``(iii) ADJUSTMENT FOR INFLATION.--In the case of any calendar year beginning after 2008, the $10,000 amount under clause (ii)(II) shall be increased by an amount equal to--
``(I) such dollar amount, multiplied by
``(II) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `calendar year 2007' for `calendar year 1992' in subparagraph (B) thereof.

If any amount as adjusted under the preceding sentence is not a multiple of $100, such amount shall be rounded to the next nearest multiple of $100.''.
(2) CONFORMING AMENDMENT.--The heading of paragraph (2) of section 461(g) of such Code is amended by striking ``EXCEPTION'' and inserting ``EXCEPTIONS''.
(3) EFFECTIVE DATE.--The amendments made by this subsection shall apply to amounts paid in taxable years beginning after December 31, 2007.
(b) Offset.--There is hereby rescinded 100 percent of budget authority provided for the appropriations in titles III and IV.


(As printed in the Congressional Record for the Senate on Apr 8, 2008.)