Text: H.R.3548 — 111th Congress (2009-2010)All Information (Except Text)

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Public Law No: 111-92 (11/06/2009)

 
[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:
---------------------------------------------------------------------------

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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