§ 2273. Determinations by Secretary of Labor

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1975

   Trade Act of 1974

   Pub. L. 93–618 title II § 223 · 88 Stat. 1978

   Enacted · 19 U.S.C. § 2273

   Pub. L. 93–618, title II, § 223, Jan. 3, 1975, 88 Stat. 2019

   Source evidence

   Code source credit
   Pub. L. 93–618, title II, § 223, Jan. 3, 1975, 88 Stat. 2019

   Enacted provision · exact public law section
   SEC. 223. DETERMINATIONS BY SECRETARY OF LABOR. (a) As soon as possible after the date on which a petition is filed Publication in Federal Register. under section 221, but in any event not later than 60 days after that date, the Secretary shall determine whether the petitioning group meets the requirements of section 222 and shall issue a certification of eligibility to apply for assistance under this chapter covering workers in any group which meets such requirements. Each certification shall specify the date on which the total or partial separation began or threatened to begin. (b) A certification under this section shall not apply to any worker whose last total or partial separation from the firm or appropriate subdivision of the firm before his application under section 231 occurred— (1) more than one year before the date of the petition on which such certification was granted, or (2) more than 6 months before the effective date of this chapter. Publication in Federal Register.(c) Upon reaching his determination on a petition, the Secretary shall promptly publish a summary of the determination in the Federal Register together with his reasons for making such determination. (d) Whenever the Secretary determines, with respect to any certification of eligibility of the workers of a firm or subdivision of the firm, that total or partial separations from such firm or subdivision are no longer attributable to the conditions specified in section 222, he 19 USC 2274. shall terminate such certification and promptly have notice of such termination published in the Federal Register together with his reasons for making such determination. Such termination shall apply only with respect to total or partial separations occurring after the termination date specified by the Secretary.

2. 1993

   NAFTA Worker Security Act

   Pub. L. 103–182 title V § 503(a) · 107 Stat. 2057

   Substituted · 19 U.S.C. § 2273(a)

   Pub. L. 103–182 substituted “assistance under this subpart” for “assistance under this part”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 103–182 substituted “assistance under this subpart” for “assistance under this part”.

   Enacted provision · exact public law section
   (a) References.— Sections 221(a), 222(a), and 223(a) of the Trade Act of 1974 (19 U.S.C. 2271(a), 2272(a), and 2273(a)) are each amended by striking out “assistance under this chapter” and inserting “assistance under this subchapter”.

3. 2002

   Trade Act of 2002

   Pub. L. 107–210 div. A title I § 112(b) · 116 Stat. 933

   Substituted · 19 U.S.C. § 2273(a)

   Pub. L. 107–210 substituted “40 days” for “60 days”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 107–210 substituted “40 days” for “60 days”.

   Enacted provision · exact public law section
   (b) Expedited Review of Petitions by Secretary of Labor.— Section 223(a) of such Act (19 U.S.C. 2273(a)) is amended in the first sentence by striking “60 days” and inserting “40 days”.

4. 2009

   American Recovery and Reinvestment Act of 2009

   Pub. L. 111–5 div. B title I · 123 Stat. 115

   Substituted · 19 U.S.C. § 2273(b)

   Pub. L. 111–5, §§ 1803(1), 1893, temporarily substituted “before the worker’s application under section 2291 of this title occurred more than one year before the date of the petition on which such certification was granted.” for “or appropriate subdivision of the firm before his application under section 2291 of this title occurred—

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 111–5, §§ 1803(1), 1893, temporarily substituted “before the worker’s application under section 2291 of this title occurred more than one year before the date of the petition on which such certification was granted.” for “or appropriate subdivision of the firm before his application under section 2291 of this title occurred—

   “(1) more than one year before the date of the petition on which such certification was granted, or “(2) more than 6 months before the effective date of this part.” See Codification note above and Effective and Termination Dates of 2009 Amendment note below.

   Enacted provision · exact public law
   TITLE I— TAX PROVISIONS SEC. 1000. SHORT TITLE, ETC. (a) Short Title.— This 26 USC 1 note. title may be cited as the “American Recovery and Reinvestment Tax Act of 2009”. (b) Reference.— Except 26 USC 1 et seq. as otherwise expressly provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. (c) Table of Contents.— The table of contents for this title is as follows: TITLE I— TAX PROVISIONS Sec. 1000.  Short title, etc. Subtitle A— Tax Relief for Individuals and Families PART I— General Tax Relief Sec. 1001.  Making work pay credit. Sec. 1002.  Temporary increase in earned income tax credit. Sec. 1003.  Temporary increase of refundable portion of child credit. Sec. 1004.  American opportunity tax credit. Sec. 1005.  Computer technology and equipment allowed as a qualified higher education expense for section 529 accounts in 2009 and 2010. Sec. 1006.  Extension of and increase in first-time homebuyer credit; waiver of requirement to repay. Sec. 1007.  Suspension of tax on portion of unemployment compensation. Sec. 1008.  Additional deduction for State sales tax and excise tax on the purchase of certain motor vehicles. PART II— Alternative Minimum Tax Relief Sec. 1011.  Extension of alternative minimum tax relief for nonrefundable personal credits. Sec. 1012.  Extension of increased alternative minimum tax exemption amount. Subtitle B— Energy Incentives PART I— Renewable Energy Incentives Sec. 1101.  Extension of credit for electricity produced from certain renewable resources. Sec. 1102.  Election of investment credit in lieu of production credit. Sec. 1103.  Repeal of certain limitations on credit for renewable energy property. Sec. 1104.  Coordination with renewable energy grants. PART II— Increased Allocations of New Clean Renewable Energy Bonds and Qualified Energy Conservation Bonds Sec. 1111.  Increased limitation on issuance of new clean renewable energy bonds. Sec. 1112.  Increased limitation on issuance of qualified energy conservation bonds. PART III— Energy Conservation Incentives Sec. 1121.  Extension and modification of credit for nonbusiness energy property. Sec. 1122.  Modification of credit for residential energy efficient property. Sec. 1123.  Temporary increase in credit for alternative fuel vehicle refueling property. PART IV— Modification of Credit for Carbon Dioxide Sequestration Sec. 1131.  Application of monitoring requirements to carbon dioxide used as a tertiary injectant. PART V— Plug-in Electric Drive Motor Vehicles Sec. 1141.  Credit for new qualified plug-in electric drive motor vehicles. Sec. 1142.  Credit for certain plug-in electric vehicles. Sec. 1143.  Conversion kits. Sec. 1144.  Treatment of alternative motor vehicle credit as a personal credit allowed against AMT. PART VI— Parity for Transportation Fringe Benefits Sec. 1151.  Increased exclusion amount for commuter transit benefits and transit passes. Subtitle C— Tax Incentives for Business PART I— Temporary Investment Incentives Sec. 1201.  Special allowance for certain property acquired during 2009. Sec. 1202.  Temporary increase in limitations on expensing of certain depreciable business assets. PART II— Small Business Provisions Sec. 1211.  5-year carryback of operating losses of small businesses. Sec. 1212.  Decreased required estimated tax payments in 2009 for certain small businesses. PART III— Incentives for New Jobs Sec. 1221.  Incentives to hire unemployed veterans and disconnected youth. PART IV— Rules Relating to Debt Instruments Sec. 1231.  Deferral and ratable inclusion of income arising from business indebtedness discharged by the reacquisition of a debt instrument. Sec. 1232.  Modifications of rules for original issue discount on certain high yield obligations. PART V— Qualified Small Business Stock Sec. 1241.  Special rules applicable to qualified small business stock for 2009 and 2010. PART VI— S Corporations Sec. 1251.  Temporary reduction in recognition period for built-in gains tax. PART VII— Rules Relating to Ownership Changes Sec. 1261.  Clarification of regulations related to limitations on certain built-in losses following an ownership change. Sec. 1262.  Treatment of certain ownership changes for purposes of limitations on net operating loss carryforwards and certain built-in losses. Subtitle D— Manufacturing Recovery Provisions Sec. 1301.  Temporary expansion of availability of industrial development bonds to facilities manufacturing intangible property. Sec. 1302.  Credit for investment in advanced energy facilities. Subtitle E— Economic Recovery Tools Sec. 1401.  Recovery zone bonds. Sec. 1402.  Tribal economic development bonds. Sec. 1403.  Increase in new markets tax credit. Sec. 1404.  Coordination of low-income housing credit and low-income housing grants. Subtitle F— Infrastructure Financing Tools PART I— Improved Marketability for Tax-Exempt Bonds Sec. 1501.  De minimis safe harbor exception for tax-exempt interest expense of financial institutions. Sec. 1502.  Modification of small issuer exception to tax-exempt interest expense allocation rules for financial institutions. Sec. 1503.  Temporary modification of alternative minimum tax limitations on tax-exempt bonds. Sec. 1504.  Modification to high speed intercity rail facility bonds. PART II— Delay in Application of Withholding Tax on Government Contractors Sec. 1511.  Delay in application of withholding tax on government contractors. PART III— Tax Credit Bonds for Schools Sec. 1521.  Qualified school construction bonds. Sec. 1522.  Extension and expansion of qualified zone academy bonds. PART IV— Build America Bonds Sec. 1531.  Build America bonds. PART V— Regulated Investment Companies Allowed to Pass-Thru Tax Credit Bond Credits Sec. 1541.  Regulated investment companies allowed to pass-thru tax credit bond credits. Subtitle G— Other Provisions Sec. 1601.  Application of certain labor standards to projects financed with certain tax-favored bonds. Sec. 1602.  Grants to States for low-income housing projects in lieu of low-income housing credit allocations for 2009. Sec. 1603.  Grants for specified energy property in lieu of tax credits. Sec. 1604.  Increase in public debt limit. Subtitle H— Prohibition on Collection of Certain Payments Made Under the Continued Dumping and Subsidy Offset Act of 2000 Sec. 1701.  Prohibition on collection of certain payments made under the Continued Dumping and Subsidy Offset Act of 2000. Subtitle I— Trade Adjustment Assistance Sec. 1800.  Short title. PART I— Trade Adjustment Assistance for Workers subpart a— trade adjustment assistance for service sector workers Sec. 1801.  Extension of trade adjustment assistance to service sector and public agency workers; shifts in production. Sec. 1802.  Separate basis for certification. Sec. 1803.  Determinations by Secretary of Labor. Sec. 1804.  Monitoring and reporting relating to service sector. subpart b— industry notifications following certain affirmative determinations Sec. 1811.  Notifications following certain affirmative determinations. Sec. 1812.  Notification to Secretary of Commerce. subpart c— program benefits Sec. 1821.  Qualifying Requirements for Workers. Sec. 1822.  Weekly amounts. Sec. 1823.  Limitations on trade readjustment allowances; allowances for extended training and breaks in training. Sec. 1824.  Special rules for calculation of eligibility period. Sec. 1825.  Application of State laws and regulations on good cause for waiver of time limits or late filing of claims. Sec. 1826.  Employment and case management services. Sec. 1827.  Administrative expenses and employment and case management services. Sec. 1828.  Training funding. Sec. 1829.  Prerequisite education; approved training programs. Sec. 1830.  Pre-layoff and part-time training. Sec. 1831.  On-the-job training. Sec. 1832.  Eligibility for unemployment insurance and program benefits while in training. Sec. 1833.  Job search and relocation allowances. subpart d— reemployment trade adjustment assistance program Sec. 1841.  Reemployment trade adjustment assistance program. subpart e— other matters Sec. 1851.  Office of Trade Adjustment Assistance. Sec. 1852.  Accountability of State agencies; collection and publication of program data; agreements with States. Sec. 1853.  Verification of eligibility for program benefits. Sec. 1854.  Collection of data and reports; information to workers. Sec. 1855.  Fraud and recovery of overpayments. Sec. 1856.  Sense of Congress on application of trade adjustment assistance. Sec. 1857.  Consultations in promulgation of regulations. Sec. 1858.  Technical corrections. PART II— Trade Adjustment Assistance for Firms Sec. 1861.  Expansion to service sector firms. Sec. 1862.  Modification of requirements for certification. Sec. 1863.  Basis for determinations. Sec. 1864.  Oversight and administration; authorization of appropriations. Sec. 1865.  Increased penalties for false statements. Sec. 1866.  Annual report on trade adjustment assistance for firms. Sec. 1867.  Technical corrections. PART III— Trade Adjustment Assistance for Communities Sec. 1871.  Purpose. Sec. 1872.  Trade adjustment assistance for communities. Sec. 1873.  Conforming amendments. PART IV— Trade Adjustment Assistance for Farmers Sec. 1881.  Definitions. Sec. 1882.  Eligibility. Sec. 1883.  Benefits. Sec. 1884.  Report. Sec. 1885.  Fraud and recovery of overpayments. Sec. 1886.  Determination of increases of imports for certain fishermen. Sec. 1887.  Extension of trade adjustment assistance for farmers. PART V— General Provisions Sec. 1891.  Effective date. Sec. 1892.  Extension of trade adjustment assistance programs. Sec. 1893.  Termination; related provisions. Sec. 1894.  Government Accountability Office report. Sec. 1895.  Emergency designation. PART VI— Health Coverage Improvement Sec. 1899.  Short title. Sec. 1899A.  Improvement of the affordability of the credit. Sec. 1899B.  Payment for monthly premiums paid prior to commencement of advance payments of credit. Sec. 1899C.  TAA recipients not enrolled in training programs eligible for credit. Sec. 1899D.  TAA pre-certification period rule for purposes of determining whether there is a 63-day lapse in creditable coverage. Sec. 1899E.  Continued qualification of family members after certain events. Sec. 1899F.  Extension of COBRA benefits for certain TAA-eligible individuals and PBGC recipients. Sec. 1899G.  Addition of coverage through voluntary employees’ beneficiary associations. Sec. 1899H.  Notice requirements. Sec. 1899I.  Survey and report on enhanced health coverage tax credit program. Sec. 1899J.  Authorization of appropriations. Sec. 1899K.  Extension of national emergency grants. Sec. 1899L.  GAO study and report. Subtitle A— Tax Relief for Individuals and Families PART I— GENERAL TAX RELIEF SEC. 1001. MAKING WORK PAY CREDIT. (a) In General.— Subpart C of part IV of subchapter A of chapter 1 is amended by inserting after section 36 the following new section: “SEC. 36A. MAKING WORK PAY CREDIT. “(a) Allowance of Credit.— In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the lesser of— “(1) 6.2 percent of earned income of the taxpayer, or “(2) $400 ($800 in the case of a joint return). “(b) Limitation Based on Modified Adjusted Gross Income.— “(1) In general.— The amount allowable as a credit under subsection (a) (determined without regard to this paragraph and subsection (c)) for the taxable year shall be reduced (but not below zero) by 2 percent of so much of the taxpayer’s modified adjusted gross income as exceeds $75,000 ($150,000 in the case of a joint return). “(2) Modified adjusted gross income.— For purposes of subparagraph (A), the term ‘modified adjusted gross income’ means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933. “(c) Reduction for Certain Other Payments.— The credit allowed under subsection (a) for any taxable year shall be reduced by the amount of any payments received by the taxpayer during such taxable year under section 2201, and any credit allowed to the taxpayer under section 2202, of the American Recovery and Reinvestment Tax Act of 2009. “(d) Definitions and Special Rules.— For purposes of this section— “(1) Eligible individual.— “(A) In general.— The term ‘eligible individual’ means any individual other than— “(i) any nonresident alien individual, “(ii) any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, and “(iii) an estate or trust. “(B) Identification number requirement.— Such term shall not include any individual who does not include on the return of tax for the taxable year— “(i) such individual’s social security account number, and “(ii) in the case of a joint return, the social security account number of one of the taxpayers on such return. For purposes of the preceding sentence, the social security account number shall not include a TIN issued by the Internal Revenue Service. “(2) Earned income.— The term ‘earned income’ has the meaning given such term by section 32(c)(2), except that such term shall not include net earnings from self-employment which are not taken into account in computing taxable income. For purposes of the preceding sentence, any amount excluded from gross income by reason of section 112 shall be treated as earned income which is taken into account in computing taxable income for the taxable year. “(e) Termination.— This section shall not apply to taxable years beginning after December 31, 2010.” . (b) Treatment of Possessions.— (1) Payments to possessions.— (A) Mirror code possession.— The Effective dates. Secretary of the Treasury shall pay to each possession of the United States with a mirror code tax system amounts equal to the loss to that possession by reason of the amendments made by this section with respect to taxable years beginning in 2009 and 2010. Such amounts shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession. (B) Other possessions.— The Effective dates. Secretary of the Treasury shall pay to each possession of the United States which does not have a mirror code tax system amounts estimated by the Secretary of the Treasury as being equal to the aggregate benefits that would have been provided to residents of such possession by reason of the amendments made by this section for taxable years beginning in 2009 and 2010 if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply with respect to any possession of the United States unless such possession has a plan, which has been approved by the Secretary of the Treasury, under which such possession will promptly distribute such payments to the residents of such possession. (2) Coordination with credit allowed against united states income taxes.— No credit shall be allowed against United States income taxes for any taxable year under section 36A of the Internal Revenue Code of 1986 (as added by this section) to any person— (A) to whom a credit is allowed against taxes imposed by the possession by reason of the amendments made by this section for such taxable year, or (B) who is eligible for a payment under a plan described in paragraph (1)(B) with respect to such taxable year. (3) Definitions and special rules.— (A) Possession of the united states.— For purposes of this subsection, the term “possession of the United States” includes the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands. (B) Mirror code tax system.— For purposes of this subsection, the term “mirror code tax system” means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States. (C) Treatment of payments.— For purposes of section 1324(b)(2) of title 31, United States Code, the payments under this subsection shall be treated in the same manner as a refund due from the credit allowed under section 36A of the Internal Revenue Code of 1986 (as added by this section). (c) Refunds Disregarded in the Administration of Federal Programs and Federally Assisted Programs.— Any credit or refund allowed or made to any individual by reason of section 36A of the Internal Revenue Code of 1986 (as added by this section) or by reason of subsection (b) of this section shall not be taken into account as income and shall not be taken into account as resources for the month of receipt and the following 2 months, for purposes of determining the eligibility of such individual or any other individual for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds. (d) Authority Relating to Clerical Errors.— Section 6213(g)(2) is 26 USC 6213. amended by striking “and” at the end of subparagraph (L)(ii), by striking the period at the end of subparagraph (M) and inserting “, and”, and by adding at the end the following new subparagraph: “(N) an omission of the reduction required under section 36A(c) with respect to the credit allowed under section 36A or an omission of the correct social security account number required under section 36A(d)(1)(B).” . (e) Conforming Amendments.— (1) Section 6211(b)(4)(A) is amended by inserting “36A,” after “36,”. (2) Section 1324(b)(2) of title 31, United States Code, is amended by inserting “36A,” after “36,”. (3) The table of sections for subpart C of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 36 the following new item: “Sec. 36A.  Making work pay credit.”. (f) Effective Date.— This section, and the amendments made by this section, shall apply to taxable years beginning after December 31, 2008. SEC. 1002. TEMPORARY INCREASE IN EARNED INCOME TAX CREDIT. (a) In General.— Subsection (b) of section 32 26 USC 32. is amended by adding at the end the following new paragraph: “(3) Special rules for 2009 and 2010.— In the case of any taxable year beginning in 2009 or 2010— “(A) Increased credit percentage for 3 or more qualifying children.— In the case of a taxpayer with 3 or more qualifying children, the credit percentage is 45 percent. “(B) Reduction of marriage penalty.— “(i) In general.— The dollar amount in effect under paragraph (2)(B) shall be $5,000. “(ii) Inflation adjustment.— In the case of any taxable year beginning in 2010, the $5,000 amount in clause (i) 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 2008’ for ‘calendar year 1992’ in subparagraph (B) thereof. “(iii) Rounding.— Subparagraph Applicability. (A) of subsection (j)(2) shall apply after taking into account any increase under clause (ii).” . (b) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 2008. SEC. 1003. TEMPORARY INCREASE OF REFUNDABLE PORTION OF CHILD CREDIT. (a) In General.— Paragraph (4) of section 24(d) 26 USC 24. is amended to read as follows: “(4) Special rule for 2009 and 2010.— Notwithstanding paragraph (3), in the case of any taxable year beginning in 2009 or 2010, the dollar amount in effect for such taxable year under paragraph (1)(B)(i) shall be $3,000.” . (b) Effective Date.— The 26 USC 24 note. amendments made by this section shall apply to taxable years beginning after December 31, 2008. SEC. 1004. AMERICAN OPPORTUNITY TAX CREDIT. (a) In General.— Section 25A (relating to Hope scholarship credit) is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) the following new subsection: “(i) American Opportunity Tax Credit.— In the case of any taxable year beginning in 2009 or 2010— “(1) Increase in credit.— The Hope Scholarship Credit shall be an amount equal to the sum of— “(A) 100 percent of so much of the qualified tuition and related expenses paid by the taxpayer during the taxable year (for education furnished to the eligible student during any academic period beginning in such taxable year) as does not exceed $2,000, plus “(B) 25 percent of such expenses so paid as exceeds $2,000 but does not exceed $4,000. “(2) Credit allowed for first 4 years of post-secondary education.— Subparagraphs (A) and Applicability. (C) of subsection (b)(2) shall be applied by substituting ‘4’ for ‘2’. “(3) Qualified tuition and related expenses to include required course materials.— Subsection (f)(1)(A) shall be applied by substituting ‘tuition, fees, and course materials’ for ‘tuition and fees’. “(4) Increase in agi limits for hope scholarship credit.— In lieu of applying subsection (d) with respect to the Hope Scholarship Credit, such credit (determined without regard to this paragraph) shall be reduced (but not below zero) by the amount which bears the same ratio to such credit (as so determined) as— “(A) the excess of— “(i) the taxpayer’s modified adjusted gross income (as defined in subsection (d)(3)) for such taxable year, over “(ii) $80,000 ($160,000 in the case of a joint return), bears to “(B) $10,000 ($20,000 in the case of a joint return). “(5) Credit allowed against alternative minimum tax.— In the case of a taxable year to which section 26(a)(2) does not apply, so much of the credit allowed under subsection (a) as is attributable to the Hope Scholarship Credit shall not exceed the excess of— “(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over “(B) the sum of the credits allowable under this subpart (other than this subsection and sections 23, 25D, and 30D) and section 27 for the taxable year. Any reference in this section or section 24, 25, 26, 25B, 904, or 1400C to a credit allowable under this subsection shall be treated as a reference to so much of the credit allowable under subsection (a) as is attributable to the Hope Scholarship Credit. “(6) Portion of credit made refundable.— 40 percent of so much of the credit allowed under subsection (a) as is attributable to the Hope Scholarship Credit (determined after application of paragraph (4) and without regard to this paragraph and section 26(a)(2) or paragraph (5), as the case may be) shall be treated as a credit allowable under subpart C (and not allowed under subsection (a)). The preceding sentence shall not apply to any taxpayer for any taxable year if such taxpayer is a child to whom subsection (g) of section 1 applies for such taxable year. “(7) Coordination with midwestern disaster area benefits.— In the case of a taxpayer with respect to whom section 702(a)(1)(B) of the Heartland Disaster Tax Relief Act of 2008 applies for any taxable year, such taxpayer may elect to waive the application of this subsection to such taxpayer for such taxable year.” . (b) Conforming Amendments.— (1) Section 26 USC 24. 24(b)(3)(B) is amended by inserting “25A(i),” after “23,”. (2) Section 25(e)(1)(C)(ii) is amended by inserting “25A(i),” after “24,”. (3) Section 26(a)(1) is amended by inserting “25A(i),” after “24,”. (4) Section 25B(g)(2) is amended by inserting “25A(i),” after “23,”. (5) Section 904(i) is amended by inserting “25A(i),” after “24,”. (6) Section 1400C(d)(2) is amended by inserting “25A(i),” after “24,”. (7) Section 6211(b)(4)(A) is amended by inserting “25A by reason of subsection (i)(6) thereof,” after “24(d),”. (8) Section 1324(b)(2) of title 31, United States Code, is amended by inserting “25A,” before “35”. (c) Treatment of Possessions.— (1) Payments to possessions.— (A) Mirror code possession.— The Secretary of the Treasury shall pay to each possession of the United States with a mirror code tax system amounts equal to the loss to that possession by reason of the application of section 25A(i)(6) of the Internal Revenue Code of 1986 (as added by this section) with respect to taxable years beginning in 2009 and 2010. Such amounts shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession. (B) Other possessions.— The Secretary of the Treasury shall pay to each possession of the United States which does not have a mirror code tax system amounts estimated by the Secretary of the Treasury as being equal to the aggregate benefits that would have been provided to residents of such possession by reason of the application of section 25A(i)(6) of such Code (as so added) for taxable years beginning in 2009 and 2010 if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply with respect to any possession of the United States unless such possession has a plan, which has been approved by the Secretary of the Treasury, under which such possession will promptly distribute such payments to the residents of such possession. (2) Coordination with credit allowed against united states income taxes.— Section 25A(i)(6) of such Code (as added by this section) shall not apply to a bona fide resident of any possession of the United States. (3) Definitions and special rules.— (A) Possession of the united states.— For purposes of this subsection, the term “possession of the United States” includes the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands. (B) Mirror code tax system.— For purposes of this subsection, the term “mirror code tax system” means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States. (C) Treatment of payments.— For purposes of section 1324(b)(2) of title 31, United States Code, the payments under this subsection shall be treated in the same manner as a refund due from the credit allowed under section 25A of the Internal Revenue Code of 1986 by reason of subsection (i)(6) of such section (as added by this section). (d) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 2008. (e) Application of EGTRRA Sunset.— The amendment made by subsection (b)(1) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provision of such Act to which such amendment relates. (f) Treasury Studies Regarding Education Incentives.— (1) Study regarding coordination with non-tax student financial assistance.— The Secretary of the Treasury and the Secretary of Education, or their delegates, shall— (A) study how to coordinate the credit allowed under section 25A of the Internal Revenue Code of 1986 with the Federal Pell Grant program under section 401 of the Higher Education Act of 1965 to maximize their effectiveness at promoting college affordability, and (B) examine ways to expedite the delivery of the tax credit. (2) Study regarding inclusion of community service requirements.— The Secretary of the Treasury and the Secretary of Education, or their delegates, shall study the feasibility of requiring including community service as a condition of taking their tuition and related expenses into account under section 25A of the Internal Revenue Code of 1986. (3) Report.— Not later than 1 year after the date of the enactment of this Act, the Secretary of the Treasury, or the Secretary’s delegate, shall report to Congress on the results of the studies conducted under this paragraph. SEC. 1005. COMPUTER TECHNOLOGY AND EQUIPMENT ALLOWED AS A QUALIFIED HIGHER EDUCATION EXPENSE FOR SECTION 529 ACCOUNTS IN 2009 AND 2010. (a) In General.— Section 529(e)(3)(A) 26 USC 529. is amended by striking “and” at the end of clause (i), by striking the period at the end of clause (ii), and by adding at the end the following: “(iii) expenses paid or incurred in 2009 or 2010 for the purchase of any computer technology or equipment (as defined in section 170(e)(6)(F)(i)) or Internet access and related services, if such technology, equipment, or services are to be used by the beneficiary and the beneficiary’s family during any of the years the beneficiary is enrolled at an eligible educational institution. Clause (iii) shall not include expenses for computer software designed for sports, games, or hobbies unless the software is predominantly educational in nature.” . (b) Effective Date.— The amendments made by this section shall apply to expenses paid or incurred after December 31, 2008. SEC. 1006. EXTENSION OF AND INCREASE IN FIRST-TIME HOMEBUYER CREDIT; WAIVER OF REQUIREMENT TO REPAY. (a) Extension.— (1) In general.— Section 36(h) is amended by striking “July 1, 2009” and inserting “December 1, 2009”. (2) Conforming amendment.— Section 36(g) is amended by striking “July 1, 2009” and inserting “December 1, 2009”. (b) Increase.— (1) In general.— Section 36(b) is amended by striking “$7,500” each place it appears and inserting “$8,000”. (2) Conforming amendment.— Section 36(b)(1)(B) is amended by striking “$3,750” and inserting “$4,000”. (c) Waiver of Recapture.— (1) In general.— Paragraph (4) of section 36(f) is amended by adding at the end the following new subparagraph: “(D) Waiver of recapture for purchases in 2009.— In the case Time period. of any credit allowed with respect to the purchase of a principal residence after December 31, 2008, and before December 1, 2009— “(i) paragraph (1) shall not apply, and “(ii) paragraph (2) shall apply only if the disposition or cessation described in paragraph (2) with respect to such residence occurs during the 36-month period beginning on the date of the purchase of such residence by the taxpayer.” . (2) Conforming amendment.— Subsection (g) of section 36 is amended by striking “subsection (c)” and inserting “subsections (c) and (f)(4)(D)”. (d) Coordination With First-Time Homebuyer Credit for District of Columbia.— (1) In general.— Subsection (e) of section 1400C is amended by adding at the end the following new paragraph: “(4) Coordination with national first-time homebuyers credit.— No credit shall Time period. be allowed under this section to any taxpayer with respect to the purchase of a residence after December 31, 2008, and before December 1, 2009, if a credit under section 36 is allowable to such taxpayer (or the taxpayer’s spouse) with respect to such purchase.” . (2) Conforming amendment.— Section 36(d) 26 USC 36. is amended by striking paragraph (1). (e) Removal of Prohibition on Financing by Mortgage Revenue Bonds.— Section 36(d), as amended by subsection (c)(2), is amended by striking paragraph (2) and by redesignating paragraphs (3) and (4) as paragraphs (1) and (2), respectively. (f) Effective Date.— The amendments made by this section shall apply to residences purchased after December 31, 2008. SEC. 1007. SUSPENSION OF TAX ON PORTION OF UNEMPLOYMENT COMPENSATION. (a) In General.— Section 85 of the Internal Revenue Code of 1986 (relating to unemployment compensation) is amended by adding at the end the following new subsection: “(c) Special Rule for 2009.— In the case of any taxable year beginning in 2009, gross income shall not include so much of the unemployment compensation received by an individual as does not exceed $2,400.” . (b) Effective Date.— The amendment made by this section shall apply to taxable years beginning after December 31, 2008. SEC. 1008. ADDITIONAL DEDUCTION FOR STATE SALES TAX AND EXCISE TAX ON THE PURCHASE OF CERTAIN MOTOR VEHICLES. (a) In General.— Subsection (a) of section 164 is amended by inserting after paragraph (5) the following new paragraph: “(6) Qualified motor vehicle taxes.” . (b) Qualified Motor Vehicle Taxes.— Subsection (b) of section 164 is amended by adding at the end the following new paragraph: “(6) Qualified motor vehicle taxes.— “(A) In general.— For purposes of this section, the term ‘qualified motor vehicle taxes’ means any State or local sales or excise tax imposed on the purchase of a qualified motor vehicle. “(B) Limitation based on vehicle price.— The amount of any State or local sales or excise tax imposed on the purchase of a qualified motor vehicle taken into account under subparagraph (A) shall not exceed the portion of such tax attributable to so much of the purchase price as does not exceed $49,500. “(C) Income limitation.— The amount otherwise taken into account under subparagraph (A) (after the application of subparagraph (B)) for any taxable year shall be reduced (but not below zero) by the amount which bears the same ratio to the amount which is so treated as— “(i) the excess (if any) of— “(I) the taxpayer’s modified adjusted gross income for such taxable year, over “(II) $125,000 ($250,000 in the case of a joint return), bears to “(ii) $10,000. For purposes of the preceding sentence, the term ‘modified adjusted gross income’ means the adjusted gross income of the taxpayer for the taxable year (determined without regard to sections 911, 931, and 933). “(D) Qualified motor vehicle.— For purposes of this paragraph— “(i) In general.— The term ‘qualified motor vehicle’ means— “(I) a passenger automobile or light truck which is treated as a motor vehicle for purposes of title II of the Clean Air Act, the gross vehicle weight rating of which is not more than 8,500 pounds, and the original use of which commences with the taxpayer, “(II) a motorcycle the gross vehicle weight rating of which is not more than 8,500 pounds and the original use of which commences with the taxpayer, and “(III) a motor home the original use of which commences with the taxpayer. “(ii) Other terms.— The terms ‘motorcycle’ and ‘motor home’ have the meanings given such terms under section 571.3 of title 49, Code of Federal Regulations (as in effect on the date of the enactment of this paragraph). “(E) Qualified motor vehicle taxes not included in cost of acquired property.— The last sentence of subsection (a) shall not apply to any qualified motor vehicle taxes. “(F) Coordination with general sales tax.— This paragraph shall not apply in the case of a taxpayer who makes an election under paragraph (5) for the taxable year. “(G) Termination.— This paragraph shall not apply to purchases after December 31, 2009.” . (c) Deduction Allowed to Nonitemizers.— (1) In general.— Paragraph (1) of section 63(c) 26 USC 63. is amended by striking “and” at the end of subparagraph (C), by striking the period at the end of subparagraph (D) and inserting “, and”, and by adding at the end the following new subparagraph: “(E) the motor vehicle sales tax deduction.” . (2) Definition.— Section 63(c) is amended by adding at the end the following new paragraph: “(9) Motor vehicle sales tax deduction.— For purposes of paragraph (1), the term ‘motor vehicle sales tax deduction’ means the amount allowable as a deduction under section 164(a)(6). Such term shall not include any amount taken into account under section 62(a).” . (d) Treatment of Deduction Under Alternative Minimum Tax.— The last sentence of section 56(b)(1)(E) is amended by striking “section 63(c)(1)(D)” and inserting “subparagraphs (D) and (E) of section 63(c)(1)”. (e) Effective Date.— The amendments made by this section shall apply to purchases on or after the date of the enactment of this Act in taxable years ending after such date. PART II— ALTERNATIVE MINIMUM TAX RELIEF SEC. 1011. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR NONREFUNDABLE PERSONAL CREDITS. (a) In General.— Paragraph (2) of section 26(a) 26 USC 26. (relating to special rule for taxable years 2000 through 2008) is amended— (1) by striking “or 2008” and inserting “2008, or 2009”, and (2) by striking “2008” in the heading thereof and inserting “2009”. (b) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 2008. SEC. 1012. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX EXEMPTION AMOUNT. (a) In General.— Paragraph (1) of section 55(d) (relating to exemption amount) is amended— (1) by striking “($69,950 in the case of taxable years beginning in 2008)” in subparagraph (A) and inserting “($70,950 in the case of taxable years beginning in 2009)”, and (2) by striking “($46,200 in the case of taxable years beginning in 2008)” in subparagraph (B) and inserting “($46,700 in the case of taxable years beginning in 2009)”. (b) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 2008. Subtitle B— Energy Incentives PART I— RENEWABLE ENERGY INCENTIVES SEC. 1101. EXTENSION OF CREDIT FOR ELECTRICITY PRODUCED FROM CERTAIN RENEWABLE RESOURCES. (a) In General.— Subsection (d) of section 45 is amended— (1) by striking “2010” in paragraph (1) and inserting “2013”, (2) by striking “2011” each place it appears in paragraphs (2), (3), (4), (6), (7) and (9) and inserting “2014”, and (3) by striking “2012” in paragraph (11)(B) and inserting “2014”. (b) Technical Amendment.— Paragraph (5) of section 45(d) is amended by striking “and before” and all that follows and inserting “ and before October 3, 2008.”. (c) Effective Date.— (1) In general.— The amendments made by subsection (a) shall apply to property placed in service after the date of the enactment of this Act. (2) Technical amendment.— The amendment made by subsection (b) shall take effect as if included in section 102 of the Energy Improvement and Extension Act of 2008. SEC. 1102. ELECTION OF INVESTMENT CREDIT IN LIEU OF PRODUCTION CREDIT. (a) In General.— Subsection (a) of section 48 is amended by adding at the end the following new paragraph: “(5) Election to treat qualified facilities as energy property.— “(A) In general.— In the case of any qualified property which is part of a qualified investment credit facility— “(i) such property shall be treated as energy property for purposes of this section, and “(ii) the energy percentage with respect to such property shall be 30 percent. “(B) Denial of production credit.— No credit shall be allowed under section 45 for any taxable year with respect to any qualified investment credit facility. “(C) Qualified investment credit facility.— For purposes of this paragraph, the term ‘qualified investment credit facility’ means any of the following facilities if no credit has been allowed under section 45 with respect to such facility and the taxpayer makes an irrevocable election to have this paragraph apply to such facility: “(i) Wind facilities.— Any qualified facility (within the meaning of section 45) described in paragraph (1) of section 45(d) if such facility is placed in service in 2009, 2010, 2011, or 2012. “(ii) Other facilities.— Any qualified facility (within the meaning of section 45) described in paragraph (2), (3), (4), (6), (7), (9), or (11) of section 45(d) if such facility is placed in service in 2009, 2010, 2011, 2012, or 2013. “(D) Qualified property.— For purposes of this paragraph, the term ‘qualified property’ means property— “(i) which is— “(I) tangible personal property, or “(II) other tangible property (not including a building or its structural components), but only if such property is used as an integral part of the qualified investment credit facility, and “(ii) with respect to which depreciation (or amortization in lieu of depreciation) is allowable.” . (b) Effective Date.— The amendments made by this section shall apply to facilities placed in service after December 31, 2008. SEC. 1103. REPEAL OF CERTAIN LIMITATIONS ON CREDIT FOR RENEWABLE ENERGY PROPERTY. (a) Repeal of Limitation on Credit for Qualified Small Wind Energy Property.— Paragraph (4) of section 48(c) 26 USC 48. is amended by striking subparagraph (B) and by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C). (b) Repeal of Limitation on Property Financed by Subsidized Energy Financing.— (1) In general.— Section 48(a)(4) is amended by adding at the end the following new subparagraph: “(D) Termination.— This paragraph shall not apply to periods after December 31, 2008, under rules similar to the rules of section 48(m) (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).” . (2) Conforming amendments.— (A) Section 25C(e)(1) is amended by striking “(8), and (9)” and inserting “and (8)”. (B) Section 25D(e) is amended by striking paragraph (9). (C) Section 48A(b)(2) 26 USC 48A. is amended by inserting “(without regard to subparagraph (D) thereof)” after “section 48(a)(4)”. (D) Section 48B(b)(2) is amended by inserting “(without regard to subparagraph (D) thereof)” after “section 48(a)(4)”. (c) Effective Date.— (1) In general.— Except as provided in paragraph (2), the amendment made by this section shall apply to periods after December 31, 2008, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990). (2) Conforming amendments.— The amendments made by subparagraphs (A) and (B) of subsection (b)(2) shall apply to taxable years beginning after December 31, 2008. SEC. 1104. COORDINATION WITH RENEWABLE ENERGY GRANTS.   Section 48 is amended by adding at the end the following new subsection: “(d) Coordination With Department of Treasury Grants.— In the case of any property with respect to which the Secretary makes a grant under section 1603 of the American Recovery and Reinvestment Tax Act of 2009— “(1) Denial of production and investment credits.— No credit shall be determined under this section or section 45 with respect to such property for the taxable year in which such grant is made or any subsequent taxable year. “(2) Recapture of credits for progress expenditures made before grant.— If a credit was determined under this section with respect to such property for any taxable year ending before such grant is made— “(A) the tax imposed under subtitle A on the taxpayer for the taxable year in which such grant is made shall be increased by so much of such credit as was allowed under section 38, “(B) the general business carryforwards under section 39 shall be adjusted so as to recapture the portion of such credit which was not so allowed, and “(C) the amount of such grant shall be determined without regard to any reduction in the basis of such property by reason of such credit. “(3) Treatment of grants.— Any such grant shall— “(A) not be includible in the gross income of the taxpayer, but “(B) shall be taken into account in determining the basis of the property to which such grant relates, except that the basis of such property shall be reduced under section 50(c) in the same manner as a credit allowed under subsection (a).” . PART II— INCREASED ALLOCATIONS OF NEW CLEAN RENEWABLE ENERGY BONDS AND QUALIFIED ENERGY CONSERVATION BONDS SEC. 1111. INCREASED LIMITATION ON ISSUANCE OF NEW CLEAN RENEWABLE ENERGY BONDS.   Subsection (c) of section 54C 26 USC 54C. is amended by adding at the end the following new paragraph: “(4) Additional limitation.— The national new clean renewable energy bond limitation shall be increased by $1,600,000,000. Such increase shall be allocated by the Secretary consistent with the rules of paragraphs (2) and (3).” . SEC. 1112. INCREASED LIMITATION ON ISSUANCE OF QUALIFIED ENERGY CONSERVATION BONDS. (a) In General.— Section 54D(d) is amended by striking “$800,000,000” and inserting “$3,200,000,000”. (b) Clarification With Respect to Green Community Programs.— (1) In general.— Clause (ii) of section 54D(f)(1)(A) is amended by inserting “(including the use of loans, grants, or other repayment mechanisms to implement such programs)” after “green community programs”. (2) Special rules for bonds for implementing green community programs.— Subsection (e) of section 54D is amended by adding at the end the following new paragraph: “(4) Special rules for bonds to implement green community programs.— In the case of any bond issued for the purpose of providing loans, grants, or other repayment mechanisms for capital expenditures to implement green community programs, such bond shall not be treated as a private activity bond for purposes of paragraph (3).” . PART III— ENERGY CONSERVATION INCENTIVES SEC. 1121. EXTENSION AND MODIFICATION OF CREDIT FOR NONBUSINESS ENERGY PROPERTY. (a) In General.— Section 25C is amended by striking subsections (a) and (b) and inserting the following new subsections: “(a) Allowance of Credit.— In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 30 percent of the sum of— “(1) the amount paid or incurred by the taxpayer during such taxable year for qualified energy efficiency improvements, and “(2) the amount of the residential energy property expenditures paid or incurred by the taxpayer during such taxable year. “(b) Limitation.— The aggregate amount of the credits allowed under this section for taxable years beginning in 2009 and 2010 with respect to any taxpayer shall not exceed $1,500.” . (b) Modifications of Standards for Energy-Efficient Building Property.— (1) Electric heat pumps.— Subparagraph (B) of section 25C(d)(3) 26 USC 25C. is amended to read as follows: “(B) an electric heat pump which achieves the highest efficiency tier established by the Consortium for Energy Efficiency, as in effect on January 1, 2009.” . (2) Central air conditioners.— Subparagraph (C) of section 25C(d)(3) is amended by striking “2006” and inserting “2009”. (3) Water heaters.— Subparagraph (D) of section 25C(d)(3) is amended to read as follows: “(D) a natural gas, propane, or oil water heater which has either an energy factor of at least 0.82 or a thermal efficiency of at least 90 percent.” . (4) Wood stoves.— Subparagraph (E) of section 25C(d)(3) is amended by inserting “, as measured using a lower heating value” after “75 percent”. (c) Modifications of Standards for Oil Furnaces and Hot Water Boilers.— (1) In general.— Paragraph (4) of section 25C(d) is amended to read as follows: “(4) Qualified natural gas, propane, and oil furnaces and hot water boilers.— “(A) Qualified natural gas furnace.— The term ‘qualified natural gas furnace’ means any natural gas furnace which achieves an annual fuel utilization efficiency rate of not less than 95. “(B) Qualified natural gas hot water boiler.— The term ‘qualified natural gas hot water boiler’ means any natural gas hot water boiler which achieves an annual fuel utilization efficiency rate of not less than 90. “(C) Qualified propane furnace.— The term ‘qualified propane furnace’ means any propane furnace which achieves an annual fuel utilization efficiency rate of not less than 95. “(D) Qualified propane hot water boiler.— The term ‘qualified propane hot water boiler’ means any propane hot water boiler which achieves an annual fuel utilization efficiency rate of not less than 90. “(E) Qualified oil furnaces.— The term ‘qualified oil furnace’ means any oil furnace which achieves an annual fuel utilization efficiency rate of not less than 90. “(F) Qualified oil hot water boiler.— The term ‘qualified oil hot water boiler’ means any oil hot water boiler which achieves an annual fuel utilization efficiency rate of not less than 90.” . (2) Conforming amendment.— Clause (ii) of section 25C(d)(2)(A) is amended to read as follows: “(ii) any qualified natural gas furnace, qualified propane furnace, qualified oil furnace, qualified natural gas hot water boiler, qualified propane hot water boiler, or qualified oil hot water boiler, or” . (d) Modifications of Standards for Qualified Energy Efficiency Improvements.— (1) Qualifications for exterior windows, doors, and skylights.— Subsection (c) of section 25C is amended by adding at the end the following new paragraph: “(4) Qualifications for exterior windows, doors, and skylights.— Such term shall not include any component described in subparagraph (B) or (C) of paragraph (2) unless such component is equal to or below a U factor of 0.30 and SHGC of 0.30.” . (2) Additional qualification for insulation.— Subparagraph (A) of section 25C(c)(2) 26 USC 25C. is amended by inserting “and meets the prescriptive criteria for such material or system established by the 2009 International Energy Conservation Code, as such Code (including supplements) is in effect on the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009” after “such dwelling unit”. (e) Extension.— Section 25C(g)(2) is amended by striking “December 31, 2009” and inserting “December 31, 2010”. (f) Effective Dates.— (1) In general.— Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 2008. (2) Efficiency standards.— The amendments made by paragraphs (1), (2), and (3) of subsection (b) and subsections (c) and (d) shall apply to property placed in service after the date of the enactment of this Act. SEC. 1122. MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY. (a) Removal of Credit Limitation for Property Placed in Service.— (1) In general.— Paragraph (1) of section 25D(b) is amended to read as follows: “(1) Maximum credit for fuel cells.— In the case of any qualified fuel cell property expenditure, the credit allowed under subsection (a) (determined without regard to subsection (c)) for any taxable year shall not exceed $500 with respect to each half kilowatt of capacity of the qualified fuel cell property (as defined in section 48(c)(1)) to which such expenditure relates.” . (2) Conforming amendment.— Paragraph (4) of section 25D(e) is amended— (A) by striking all that precedes subparagraph (B) and inserting the following: “(4) Fuel cell expenditure limitations in case of joint occupancy.— In the case of any dwelling unit with respect to which qualified fuel cell property expenditures are made and which is jointly occupied and used during any calendar year as a residence by two or more individuals, the following rules shall apply: “(A) Maximum expenditures for fuel cells.— The maximum amount of such expenditures which may be taken into account under subsection (a) by all such individuals with respect to such dwelling unit during such calendar year shall be $1,667 in the case of each half kilowatt of capacity of qualified fuel cell property (as defined in section 48(c)(1)) with respect to which such expenditures relate.” , and (B) by striking subparagraph (C). (b) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 2008. SEC. 1123. TEMPORARY INCREASE IN CREDIT FOR ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY. (a) In General.— Section 30C(e) 26 USC 30C. is amended by adding at the end the following new paragraph: “(6) Special rule for property placed in service during 2009 and 2010.— In the case of property placed in service in taxable years beginning after December 31, 2008, and before January 1, 2011— “(A) in the case of any such property which does not relate to hydrogen— “(i) subsection (a) shall be applied by substituting ‘50 percent’ for ‘30 percent’, “(ii) subsection (b)(1) shall be applied by substituting ‘$50,000’ for ‘$30,000’, and “(iii) subsection (b)(2) shall be applied by substituting ‘$2,000’ for ‘$1,000’, and “(B) in the case of any such property which relates to hydrogen, subsection (b)(1) shall be applied by substituting ‘$200,000’ for ‘$30,000’.” . (b) Effective Date.— The amendment made by this section shall apply to taxable years beginning after December 31, 2008. PART IV— MODIFICATION OF CREDIT FOR CARBON DIOXIDE SEQUESTRATION SEC. 1131. APPLICATION OF MONITORING REQUIREMENTS TO CARBON DIOXIDE USED AS A TERTIARY INJECTANT. (a) In General.— Section 45Q(a)(2) is amended by striking “and” at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting “, and”, and by adding at the end the following new subparagraph: “(C) disposed of by the taxpayer in secure geological storage.” . (b) Conforming Amendments.— (1) Section 45Q(d)(2) is amended— (A) by striking “subsection (a)(1)(B)” and inserting “paragraph (1)(B) or (2)(C) of subsection (a)”, (B) by striking “and unminable coal seems” and inserting “, oil and gas reservoirs, and unminable coal seams”, and (C) by inserting “the Secretary of Energy, and the Secretary of the Interior,” after “Environmental Protection Agency”. (2) Section 45Q(a)(1)(B) is amended by inserting “and not used by the taxpayer as described in paragraph (2)(B)” after “storage”. (3) Section 45Q(e) is amended by striking “captured and disposed of or used as a tertiary injectant” and inserting “taken into account in accordance with subsection (a)”. (c) Effective Date.— The amendments made by this section shall apply to carbon dioxide captured after the date of the enactment of this Act. PART V— PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES SEC. 1141. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES. (a) In General.— Section 30D 26 USC 30D. is amended to read as follows: “SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES. “(a) Allowance of Credit.— There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the credit amounts determined under subsection (b) with respect to each new qualified plug-in electric drive motor vehicle placed in service by the taxpayer during the taxable year. “(b) Per Vehicle Dollar Limitation.— “(1) In general.— The amount determined under this subsection with respect to any new qualified plug-in electric drive motor vehicle is the sum of the amounts determined under paragraphs (2) and (3) with respect to such vehicle. “(2) Base amount.— The amount determined under this paragraph is $2,500. “(3) Battery capacity.— In the case of a vehicle which draws propulsion energy from a battery with not less than 5 kilowatt hours of capacity, the amount determined under this paragraph is $417, plus $417 for each kilowatt hour of capacity in excess of 5 kilowatt hours. The amount determined under this paragraph shall not exceed $5,000. “(c) Application With Other Credits.— “(1) Business credit treated as part of general business credit.— So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to property of a character subject to an allowance for depreciation shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)). “(2) Personal credit.— “(A) In general.— For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year. “(B) Limitation based on amount of tax.— In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall not exceed the excess of— “(i) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over “(ii) the sum of the credits allowable under subpart A (other than this section and sections 23 and 25D) and section 27 for the taxable year. “(d) New Qualified Plug-in Electric Drive Motor Vehicle.— For purposes of this section— “(1) In general.— The term ‘new qualified plug-in electric drive motor vehicle’ means a motor vehicle— “(A) the original use of which commences with the taxpayer, “(B) which is acquired for use or lease by the taxpayer and not for resale, “(C) which is made by a manufacturer, “(D) which is treated as a motor vehicle for purposes of title II of the Clean Air Act, “(E) which has a gross vehicle weight rating of less than 14,000 pounds, and “(F) which is propelled to a significant extent by an electric motor which draws electricity from a battery which— “(i) has a capacity of not less than 4 kilowatt hours, and “(ii) is capable of being recharged from an external source of electricity. “(2) Motor vehicle.— The term ‘motor vehicle’ means any vehicle which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails) and which has at least 4 wheels. “(3) Manufacturer.— The term ‘manufacturer’ has the meaning given such term in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act (42 U.S.C. 7521 et seq.). “(4) Battery capacity.— The term ‘capacity’ means, with respect to any battery, the quantity of electricity which the battery is capable of storing, expressed in kilowatt hours, as measured from a 100 percent state of charge to a 0 percent state of charge. “(e) Limitation on Number of New Qualified Plug-in Electric Drive Motor Vehicles Eligible for Credit.— “(1) In general.— In the case of a new qualified plug-in electric drive motor vehicle sold during the phaseout period, only the applicable percentage of the credit otherwise allowable under subsection (a) shall be allowed. “(2) Phaseout period.— For purposes of this subsection, the phaseout period is the period beginning with the second calendar quarter following the calendar quarter which includes the first date on which the number of new qualified plug-in electric drive motor vehicles manufactured by the manufacturer of the vehicle referred to in paragraph (1) sold for use in the United States after December 31, 2009, is at least 200,000. “(3) Applicable percentage.— For purposes of paragraph (1), the applicable percentage is— “(A) 50 percent for the first 2 calendar quarters of the phaseout period, “(B) 25 percent for the 3d and 4th calendar quarters of the phaseout period, and “(C) 0 percent for each calendar quarter thereafter. “(4) Controlled groups.— Rules similar to the rules of section 30B(f)(4) shall apply for purposes of this subsection. “(f) Special Rules.— “(1) Basis reduction.— For purposes of this subtitle, the basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit so allowed. “(2) No double benefit.— The amount of any deduction or other credit allowable under this chapter for a new qualified plug-in electric drive motor vehicle shall be reduced by the amount of credit allowed under subsection (a) for such vehicle. “(3) Property used by tax-exempt entity.— In the case of a vehicle the use of which is described in paragraph (3) or (4) of section 50(b) and which is not subject to a lease, the person who sold such vehicle to the person or entity using such vehicle shall be treated as the taxpayer that placed such vehicle in service, but only if such person clearly discloses to such person or entity in a document the amount of any credit allowable under subsection (a) with respect to such vehicle (determined without regard to subsection (c)). “(4) Property used outside united states not qualified.— No credit shall be allowable under subsection (a) with respect to any property referred to in section 50(b)(1). “(5) Recapture.— The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit. “(6) Election not to take credit.— No credit shall be allowed under subsection (a) for any vehicle if the taxpayer elects to not have this section apply to such vehicle. “(7) Interaction with air quality and motor vehicle safety standards.— A motor vehicle shall not be considered eligible for a credit under this section unless such vehicle is in compliance with— “(A) the applicable provisions of the Clean Air Act for the applicable make and model year of the vehicle (or applicable air quality provisions of State law in the case of a State which has adopted such provision under a waiver under section 209(b) of the Clean Air Act), and “(B) the motor vehicle safety provisions of sections 30101 through 30169 of title 49, United States Code.” . (b) Conforming Amendments.— (1) Section 30B(d)(3)(D) 26 USC 30B. is amended by striking “subsection (d) thereof” and inserting “subsection (c) thereof”. (2) Section 38(b)(35) is amended by striking “30D(d)(1)” and inserting “30D(c)(1)”. (3) Section 1016(a)(25) is amended by striking “section 30D(e)(4)” and inserting “section 30D(f)(1)”. (4) Section 6501(m) is amended by striking “section 30D(e)(9)” and inserting “section 30D(e)(4)”. (c) Effective Date.— The amendments made by this section shall apply to vehicles acquired after December 31, 2009. SEC. 1142. CREDIT FOR CERTAIN PLUG-IN ELECTRIC VEHICLES. (a) In General.— Section 30 is amended to read as follows: “SEC. 30. CERTAIN PLUG-IN ELECTRIC VEHICLES. “(a) Allowance of Credit.— There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 10 percent of the cost of any qualified plug-in electric vehicle placed in service by the taxpayer during the taxable year. “(b) Per Vehicle Dollar Limitation.— The amount of the credit allowed under subsection (a) with respect to any vehicle shall not exceed $2,500. “(c) Application With Other Credits.— “(1) Business credit treated as part of general business credit.— So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to property of a character subject to an allowance for depreciation shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)). “(2) Personal credit.— “(A) In general.— For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year. “(B) Limitation based on amount of tax.— In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall not exceed the excess of— “(i) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over “(ii) the sum of the credits allowable under subpart A (other than this section and sections 23, 25D, and 30D) and section 27 for the taxable year. “(d) Qualified Plug-in Electric Vehicle.— For purposes of this section— “(1) In general.— The term ‘qualified plug-in electric vehicle’ means a specified vehicle— “(A) the original use of which commences with the taxpayer, “(B) which is acquired for use or lease by the taxpayer and not for resale, “(C) which is made by a manufacturer, “(D) which is manufactured primarily for use on public streets, roads, and highways, “(E) which has a gross vehicle weight rating of less than 14,000 pounds, and “(F) which is propelled to a significant extent by an electric motor which draws electricity from a battery which— “(i) has a capacity of not less than 4 kilowatt hours (2.5 kilowatt hours in the case of a vehicle with 2 or 3 wheels), and “(ii) is capable of being recharged from an external source of electricity. “(2) Specified vehicle.— The term ‘specified vehicle’ means any vehicle which— “(A) is a low speed vehicle within the meaning of section 571.3 of title 49, Code of Federal Regulations (as in effect on the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009), or “(B) has 2 or 3 wheels. “(3) Manufacturer.— The term ‘manufacturer’ has the meaning given such term in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act (42 U.S.C. 7521 et seq.). “(4) Battery capacity.— The term ‘capacity’ means, with respect to any battery, the quantity of electricity which the battery is capable of storing, expressed in kilowatt hours, as measured from a 100 percent state of charge to a 0 percent state of charge. “(e) Special Rules.— “(1) Basis reduction.— For purposes of this subtitle, the basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit so allowed. “(2) No double benefit.— The amount of any deduction or other credit allowable under this chapter for a new qualified plug-in electric drive motor vehicle shall be reduced by the amount of credit allowable under subsection (a) for such vehicle. “(3) Property used by tax-exempt entity.— In the case of a vehicle the use of which is described in paragraph (3) or (4) of section 50(b) and which is not subject to a lease, the person who sold such vehicle to the person or entity using such vehicle shall be treated as the taxpayer that placed such vehicle in service, but only if such person clearly discloses to such person or entity in a document the amount of any credit allowable under subsection (a) with respect to such vehicle (determined without regard to subsection (c)). “(4) Property used outside united states not qualified.— No credit shall be allowable under subsection (a) with respect to any property referred to in section 50(b)(1). “(5) Recapture.— The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit. “(6) Election not to take credit.— No credit shall be allowed under subsection (a) for any vehicle if the taxpayer elects to not have this section apply to such vehicle. “(f) Termination.— This section shall not apply to any vehicle acquired after December 31, 2011.” . (b) Conforming Amendments.— (1) (A) Section 24(b)(3)(B) 26 USC 24. is amended by inserting “30,” after “25D,”. (B) Section 25(e)(1)(C)(ii) is amended by inserting “30,” after “25D,”. (C) Section 25B(g)(2) is amended by inserting “30,” after “25D,”. (D) Section 26(a)(1) is amended by inserting “30,” after “25D,”. (E) Section 904(i) is amended by striking “and 25B” and inserting “25B, 30, and 30D”. (F) Section 1400C(d)(2) is amended by striking “and 25D” and inserting “25D, and 30”. (2) Paragraph (1) of section 30B(h) is amended to read as follows: “(1) Motor vehicle.— The term ‘motor vehicle’ means any vehicle which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails) and which has at least 4 wheels.” . (3) Section 30C(d)(2)(A) 26 USC 30C. is amended by striking “, 30,”. (4) (A) Section 53(d)(1)(B) is amended by striking clause (iii) and redesignating clause (iv) as clause (iii). (B) Subclause (II) of section 53(d)(1)(B)(iii), as so redesignated, is amended by striking “increased in the manner provided in clause (iii)”. (5) Section 55(c)(3) is amended by striking “30(b)(3),”. (6) Section 1016(a)(25) is amended by striking “section 30(d)(1)” and inserting “section 30(e)(1)”. (7) Section 6501(m) is amended by striking “section 30(d)(4)” and inserting “section 30(e)(6)”. (8) The item in the table of sections for subpart B of part IV of subchapter A of chapter 1 is amended to read as follows: “Sec. 30.  Certain plug-in electric vehicles.”. (c) Effective Date.— The amendments made by this section shall apply to vehicles acquired after the date of the enactment of this Act. (d) Transitional Rule.— In the Time period. 26 USC 30 note. case of a vehicle acquired after the date of the enactment of this Act and before January 1, 2010, no credit shall be allowed under section 30 of the Internal Revenue Code of 1986, as added by this section, if credit is allowable under section 30D of such Code with respect to such vehicle. (e) Application of EGTRRA Sunset.— The amendment made by subsection (b)(1)(A) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provision of such Act to which such amendment relates. SEC. 1143. CONVERSION KITS. (a) In General.— Section 30B (relating to alternative motor vehicle credit) is amended by redesignating subsections (i) and (j) as subsections (j) and (k), respectively, and by inserting after subsection (h) the following new subsection: “(i) Plug-in Conversion Credit.— “(1) In general.— For purposes of subsection (a), the plug-in conversion credit determined under this subsection with respect to any motor vehicle which is converted to a qualified plug-in electric drive motor vehicle is 10 percent of so much of the cost of the converting such vehicle as does not exceed $40,000. “(2) Qualified plug-in electric drive motor vehicle.— For purposes of this subsection, the term ‘qualified plug-in electric drive motor vehicle’ means any new qualified plug-in electric drive motor vehicle (as defined in section 30D, determined without regard to whether such vehicle is made by a manufacturer or whether the original use of such vehicle commences with the taxpayer). “(3) Credit allowed in addition to other credits.— The credit allowed under this subsection shall be allowed with respect to a motor vehicle notwithstanding whether a credit has been allowed with respect to such motor vehicle under this section (other than this subsection) in any preceding taxable year. “(4) Termination.— This subsection shall not apply to conversions made after December 31, 2011.” . (b) Credit Treated as Part of Alternative Motor Vehicle Credit.— Section 30B(a) 26 USC 30B. is amended by striking “and” at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting “, and”, and by adding at the end the following new paragraph: “(5) the plug-in conversion credit determined under subsection (i).” . (c) No Recapture for Vehicles Converted to Qualified Plug-in Electric Drive Motor Vehicles.— Paragraph (8) of section 30B(h) is amended by adding at the end the following: “, except that no benefit shall be recaptured if such property ceases to be eligible for such credit by reason of conversion to a qualified plug-in electric drive motor vehicle.”. (d) Effective Date.— The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act. SEC. 1144. TREATMENT OF ALTERNATIVE MOTOR VEHICLE CREDIT AS A PERSONAL CREDIT ALLOWED AGAINST AMT. (a) In General.— Paragraph (2) of section 30B(g) is amended to read as follows: “(2) Personal credit.— “(A) In general.— For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year. “(B) Limitation based on amount of tax.— In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall not exceed the excess of— “(i) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over “(ii) the sum of the credits allowable under subpart A (other than this section and sections 23, 25D, 30, and 30D) and section 27 for the taxable year.” . (b) Conforming Amendments.— (1) (A) Section 24(b)(3)(B), as amended by this Act, is amended by inserting “30B,” after “30,”. (B) Section 25(e)(1)(C)(ii), as amended by this Act, is amended by inserting “30B,” after “30,”. (C) Section 25B(g)(2), as amended by this Act, is amended by inserting “30B,” after “30,”. (D) Section 26(a)(1), as amended by this Act, is amended by inserting “30B,” after “30,”. (E) Section 904(i), as amended by this Act, is amended by inserting “30B,” after “30”. (F) Section 1400C(d)(2), as amended by this Act, is amended by striking “and 30” and inserting “30, and 30B”. (2) Section 30C(d)(2)(A), as amended by this Act, is amended by striking “sections 27 and 30B” and inserting “section 27”. (3) Section 55(c)(3) is amended by striking “30B(g)(2),”. (c) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 2008. (d) Application of EGTRRA Sunset.— The amendment made by subsection (b)(1)(A) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provision of such Act to which such amendment relates. PART VI— PARITY FOR TRANSPORTATION FRINGE BENEFITS SEC. 1151. INCREASED EXCLUSION AMOUNT FOR COMMUTER TRANSIT BENEFITS AND TRANSIT PASSES. (a) In General.— Paragraph (2) of section 132(f) 26 USC 132. is amended by adding at the end the following flush sentence: “In Applicability. the case of any month beginning on or after the date of the enactment of this sentence and before January 1, 2011, subparagraph (A) shall be applied as if the dollar amount therein were the same as the dollar amount in effect for such month under subparagraph (B).” . (b) Effective Date.— The amendment made by this section shall apply to months beginning on or after the date of the enactment of this section. Subtitle C— Tax Incentives for Business PART I— TEMPORARY INVESTMENT INCENTIVES SEC. 1201. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY ACQUIRED DURING 2009. (a) Extension of Special Allowance.— (1) In general.— Paragraph (2) of section 168(k) is amended— (A) by striking “January 1, 2010” and inserting “January 1, 2011”, and (B) by striking “January 1, 2009” each place it appears and inserting “January 1, 2010”. (2) Conforming amendments.— (A) The heading for subsection (k) of section 168 is amended by striking “January 1, 2009” and inserting “January 1, 2010”. (B) The heading for clause (ii) of section 168(k)(2)(B) is amended by striking “pre-january 1, 2009” and inserting “pre-january 1, 2010”. (C) Subparagraph (B) of section 168(l)(5) is amended by striking “January 1, 2009” and inserting “January 1, 2010”. (D) Subparagraph (C) of section 168(n)(2) is amended by striking “January 1, 2009” and inserting “January 1, 2010”. (E) Subparagraph (B) of section 1400N(d)(3) is amended by striking “January 1, 2009” and inserting “January 1, 2010”. (3) Technical amendments.— (A) Subparagraph (D) of section 168(k)(4) is amended— (i) by striking “and” at the end of clause (i), (ii) by redesignating clause (ii) as clause (iii), and (iii) by inserting after clause (i) the following new clause: “(ii) ‘April 1, 2008’ shall be substituted for ‘January 1, 2008’ in subparagraph (A)(iii)(I) thereof, and” . (B) Subparagraph (A) of section 6211(b)(4) 26 USC 6211. is amended by inserting “168(k)(4),” after “53(e),”. (b) Extension of Election to Accelerate the Amt and Research Credits in Lieu of Bonus Depreciation.— (1) In general.— Section 168(k)(4) (relating to election to accelerate the AMT and research credits in lieu of bonus depreciation) is amended— (A) by striking “2009” and inserting “2010”in subparagraph (D)(iii) (as redesignated by subsection (a)(3)), and (B) by adding at the end the following new subparagraph: “(H) Special rules for extension property.— “(i) Taxpayers previously electing acceleration.— In the case of a taxpayer who made the election under subparagraph (A) for its first taxable year ending after March 31, 2008— “(I) the taxpayer may elect not to have this paragraph apply to extension property, but “(II) if the taxpayer does not make the election under subclause (I), in applying this paragraph to the taxpayer a separate bonus depreciation amount, maximum amount, and maximum increase amount shall be computed and applied to eligible qualified property which is extension property and to eligible qualified property which is not extension property. “(ii) Taxpayers not previously electing acceleration.— In the case of a taxpayer who did not make the election under subparagraph (A) for its first taxable year ending after March 31, 2008— “(I) the taxpayer may elect to have this paragraph apply to its first taxable year ending after December 31, 2008, and each subsequent taxable year, and “(II) if the taxpayer makes the election under subclause (I), this paragraph shall only apply to eligible qualified property which is extension property. “(iii) Extension property.— For purposes of this subparagraph, the term ‘extension property’ means property which is eligible qualified property solely by reason of the extension of the application of the special allowance under paragraph (1) pursuant to the amendments made by section 1201(a) of the American Recovery and Reinvestment Tax Act of 2009 (and the application of such extension to this paragraph pursuant to the amendment made by section 1201(b)(1) of such Act).” . (2) Technical amendment.— Section 6211(b)(4)(A) is amended by inserting “168(k)(4),” after “53(e),”. (c) Effective Dates.— (1) In general.— Except as provided in paragraph (2), the amendments made by this section shall apply to property placed in service after December 31, 2008, in taxable years ending after such date. (2) Technical amendments.— The amendments made by subsections (a)(3) and (b)(2) shall apply to taxable years ending after March 31, 2008. SEC. 1202. TEMPORARY INCREASE IN LIMITATIONS ON EXPENSING OF CERTAIN DEPRECIABLE BUSINESS ASSETS. (a) In General.— Paragraph (7) of section 179(b) 26 USC 179. is amended— (1) by striking “2008” and inserting “2008, or 2009”, and (2) by striking “2008” in the heading thereof and inserting “2008, and 2009”. (b) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 2008. PART II— SMALL BUSINESS PROVISIONS SEC. 1211. 5-YEAR CARRYBACK OF OPERATING LOSSES OF SMALL BUSINESSES. (a) In General.— Subparagraph (H) of section 172(b)(1) is amended to read as follows: “(H) Carryback for 2008 net operating losses of small businesses.— “(i) In general.— If an eligible small business elects the application of this subparagraph with respect to an applicable 2008 net operating loss— “(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 “(III) subparagraph (F) shall not apply. “(ii) Applicable 2008 net operating loss.— For purposes of this subparagraph, the term ‘applicable 2008 net operating loss’ means— “(I) the taxpayer’s net operating loss for any taxable year ending in 2008, or “(II) if the taxpayer elects to have this subclause apply in lieu of subclause (I), the taxpayer’s net operating loss for any taxable year beginning in 2008. “(iii) Election.— 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 taxpayer’s return for the taxable year of the net operating loss. Any such election, once made, shall be irrevocable. Any election under this subparagraph may be made only with respect to 1 taxable year. “(iv) 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) Conforming Amendment.— Section 172 26 USC 172. is amended by striking subsection (k) and by redesignating subsection (l) as subsection (k). (c) Anti-Abuse 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. (d) Effective Date.— (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. (2) Transitional rule.— In the case of a net operating loss for a taxable year ending before the date of the enactment of this Act— (A) any election made under section 172(b)(3) of the Internal Revenue Code of 1986 with respect to such loss may (notwithstanding such section) be revoked before the applicable date, (B) any election made under section 172(b)(1)(H) of such Code with respect to such loss shall (notwithstanding such section) be treated as timely made if made before the applicable date, and (C) any application under section 6411(a) of such Code with respect to such loss shall be treated as timely filed if filed before the applicable date. For Definition. purposes of this paragraph, the term “applicable date” means the date which is 60 days after the date of the enactment of this Act. SEC. 1212. DECREASED REQUIRED ESTIMATED TAX PAYMENTS IN 2009 FOR CERTAIN SMALL BUSINESSES.   Paragraph (1) of section 6654(d) is amended by adding at the end the following new subparagraph: “(D) Special rule for 2009.— “(i) In general.— Notwithstanding subparagraph (C), in the case of any taxable year beginning in 2009, clause (ii) of subparagraph (B) shall be applied to any qualified individual by substituting ‘90 percent’ for ‘100 percent’. “(ii) Qualified individual.— For purposes of this subparagraph, the term ‘qualified individual’ means any individual if— “(I) the adjusted gross income shown on the return of such individual for the preceding taxable year is less than $500,000, and “(II) such individual certifies that more than 50 percent of the gross income shown on the return of such individual for the preceding taxable year was income from a small business. A certification under subclause (II) shall be in such form and manner and filed at such time as the Secretary may by regulations prescribe. “(iii) Income from a small business.— For purposes of clause (ii), income from a small business means, with respect to any individual, income from a trade or business the average number of employees of which was less than 500 employees for the calendar year ending with or within the preceding taxable year of the individual. “(iv) Separate returns.— In the case of a married individual (within the meaning of section 7703) who files a separate return for the taxable year for which the amount of the installment is being determined, clause (ii)(I) shall be applied by substituting ‘$250,000’ for ‘$500,000’. “(v) Estates and trusts.— In the case of an estate or trust, adjusted gross income shall be determined as provided in section 67(e).” . PART III— INCENTIVES FOR NEW JOBS SEC. 1221. INCENTIVES TO HIRE UNEMPLOYED VETERANS AND DISCONNECTED YOUTH. (a) In General.— Subsection (d) of section 51 26 USC 51. is amended by adding at the end the following new paragraph: “(14) Credit allowed for unemployed veterans and disconnected youth hired in 2009 or 2010.— “(A) In general.— Any unemployed veteran or disconnected youth who begins work for the employer during 2009 or 2010 shall be treated as a member of a targeted group for purposes of this subpart. “(B) Definitions.— For purposes of this paragraph— “(i) Unemployed veteran.— The term ‘unemployed veteran’ means any veteran (as defined in paragraph (3)(B), determined without regard to clause (ii) thereof) who is certified by the designated local agency as— “(I) having been discharged or released from active duty in the Armed Forces at any time during the 5-year period ending on the hiring date, and “(II) being in receipt of unemployment compensation under State or Federal law for not less than 4 weeks during the 1-year period ending on the hiring date. “(ii) Disconnected youth.— The term ‘disconnected youth’ means any individual who is certified by the designated local agency— “(I) as having attained age 16 but not age 25 on the hiring date, “(II) as not regularly attending any secondary, technical, or post-secondary school during the 6-month period preceding the hiring date, “(III) as not regularly employed during such 6-month period, and “(IV) as not readily employable by reason of lacking a sufficient number of basic skills.” . (b) Effective Date.— The amendments made by this section shall apply to individuals who begin work for the employer after December 31, 2008. PART IV— RULES RELATING TO DEBT INSTRUMENTS SEC. 1231. DEFERRAL AND RATABLE INCLUSION OF INCOME ARISING FROM BUSINESS INDEBTEDNESS DISCHARGED BY THE REACQUISITION OF A DEBT INSTRUMENT. (a) In General.— Section 108 26 USC 108. (relating to income from discharge of indebtedness) is amended by adding at the end the following new subsection: “(i) Deferral and Ratable Inclusion of Income Arising From Business Indebtedness Discharged by the Reacquisition of a Debt Instrument.— “(1) In general.— At the Time periods. election of the taxpayer, income from the discharge of indebtedness in connection with the reacquisition after December 31, 2008, and before January 1, 2011, of an applicable debt instrument shall be includible in gross income ratably over the 5-taxable-year period beginning with— “(A) in the case of a reacquisition occurring in 2009, the fifth taxable year following the taxable year in which the reacquisition occurs, and “(B) in the case of a reacquisition occurring in 2010, the fourth taxable year following the taxable year in which the reacquisition occurs. “(2) Deferral of deduction for original issue discount in debt for debt exchanges.— “(A) In general.— If, as part of a reacquisition to which paragraph (1) applies, any debt instrument is issued for the applicable debt instrument being reacquired (or is treated as so issued under subsection (e)(4) and the regulations thereunder) and there is any original issue discount determined under subpart A of part V of subchapter P of this chapter with respect to the debt instrument so issued— “(i) except as provided in clause (ii), no deduction otherwise allowable under this chapter shall be allowed to the issuer of such debt instrument with respect to the portion of such original issue discount which— “(I) accrues before the 1st taxable year in the 5-taxable-year period in which income from the discharge of indebtedness attributable to the reacquisition of the debt instrument is includible under paragraph (1), and “(II) does not exceed the income from the discharge of indebtedness with respect to the debt instrument being reacquired, and “(ii) the aggregate amount of deductions disallowed under clause (i) shall be allowed as a deduction ratably over the 5-taxable-year period described in clause (i)(I). If the amount of the original issue discount accruing before such 1st taxable year exceeds the income from the discharge of indebtedness with respect to the applicable debt instrument being reacquired, the deductions shall be disallowed in the order in which the original issue discount is accrued. “(B) Deemed debt for debt exchanges.— For purposes of subparagraph (A), if any debt instrument is issued by an issuer and the proceeds of such debt instrument are used directly or indirectly by the issuer to reacquire an applicable debt instrument of the issuer, the debt instrument so issued shall be treated as issued for the debt instrument being reacquired. Regulations. Applicability. If only a portion of the proceeds from a debt instrument are so used, the rules of subparagraph (A) shall apply to the portion of any original issue discount on the newly issued debt instrument which is equal to the portion of the proceeds from such instrument used to reacquire the outstanding instrument. “(3) Applicable debt instrument.— For purposes of this subsection— “(A) Applicable debt instrument.— The term ‘applicable debt instrument’ means any debt instrument which was issued by— “(i) a C corporation, or “(ii) any other person in connection with the conduct of a trade or business by such person. “(B) Debt instrument.— The term ‘debt instrument’ means a bond, debenture, note, certificate, or any other instrument or contractual arrangement constituting indebtedness (within the meaning of section 1275(a)(1)). “(4) Reacquisition.— For purposes of this subsection— “(A) In general.— The term ‘reacquisition’ means, with respect to any applicable debt instrument, any acquisition of the debt instrument by— “(i) the debtor which issued (or is otherwise the obligor under) the debt instrument, or “(ii) a related person to such debtor. “(B) Acquisition.— The term ‘acquisition’ shall, with respect to any applicable debt instrument, include an acquisition of the debt instrument for cash, the exchange of the debt instrument for another debt instrument (including an exchange resulting from a modification of the debt instrument), the exchange of the debt instrument for corporate stock or a partnership interest, and the contribution of the debt instrument to capital. Such term shall also include the complete forgiveness of the indebtedness by the holder of the debt instrument. “(5) Other definitions and rules.— For purposes of this subsection— “(A) Related person.— The determination of whether a person is related to another person shall be made in the same manner as under subsection (e)(4). “(B) Election.— “(i) In general.— An election under this subsection with respect to any applicable debt instrument shall be made by including with the return of tax imposed by chapter 1 for the taxable year in which the reacquisition of the debt instrument occurs a statement which— “(I) clearly identifies such instrument, and “(II) includes the amount of income to which paragraph (1) applies and such other information as the Secretary may prescribe. “(ii) Election irrevocable.— Such election, once made, is irrevocable. “(iii) Pass-thru entities.— In the case of a partnership, S corporation, or other pass-thru entity, the election under this subsection shall be made by the partnership, the S corporation, or other entity involved. “(C) Coordination with other exclusions.— If a taxpayer elects to have this subsection apply to an applicable debt instrument, subparagraphs (A), (B), (C), and (D) of subsection (a)(1) shall not apply to the income from the discharge of such indebtedness for the taxable year of the election or any subsequent taxable year. “(D) Acceleration of deferred items.— “(i) In general.— In the case of the death of the taxpayer, the liquidation or sale of substantially all the assets of the taxpayer (including in a title 11 or similar case), the cessation of business by the taxpayer, or similar circumstances, any item of income or deduction which is deferred under this subsection (and has not previously been taken into account) shall be taken into account in the taxable year in which such event occurs (or in the case of a title 11 or similar case, the day before the petition is filed). “(ii) Special rule for pass-thru entities.— The rule of clause (i) shall also apply in the case of the sale or exchange or redemption of an interest in a partnership, S corporation, or other pass- thru entity by a partner, shareholder, or other person holding an ownership interest in such entity. “(6) Special rule for partnerships.— In the case of a partnership, any income deferred under this subsection shall be allocated to the partners in the partnership immediately before the discharge in the manner such amounts would have been included in the distributive shares of such partners under section 704 if such income were recognized at such time. Any decrease in a partner’s share of partnership liabilities as a result of such discharge shall not be taken into account for purposes of section 752 at the time of the discharge to the extent it would cause the partner to recognize gain under section 731. Any decrease in partnership liabilities deferred under the preceding sentence shall be taken into account by such partner at the same time, and to the extent remaining in the same amount, as income deferred under this subsection is recognized. “(7) Secretarial authority.— The Secretary may prescribe such regulations, rules, or other guidance as may be necessary or appropriate for purposes of applying this subsection, including— “(A) extending the application of the rules of paragraph (5)(D) to other circumstances where appropriate, “(B) requiring reporting of the election (and such other information as the Secretary may require) on returns of tax for subsequent taxable years, and “(C) rules for the application of this subsection to partnerships, S corporations, and other pass-thru entities, including for the allocation of deferred deductions.” . (b) Effective Date.— The amendments made by this section shall apply to discharges in taxable years ending after December 31, 2008. SEC. 1232. MODIFICATIONS OF RULES FOR ORIGINAL ISSUE DISCOUNT ON CERTAIN HIGH YIELD OBLIGATIONS. (a) Suspension of Special Rules.— Section 163(e)(5) 26 USC 163. (relating to special rules for original issue discount on certain high yield obligations) is amended by redesignating subparagraph (F) as subparagraph (G) and by inserting after subparagraph (E) the following new subparagraph: “(F) Suspension of application of paragraph.— “(i) Temporary suspension.— This Time period. paragraph shall not apply to any applicable high yield discount obligation issued during the period beginning on September 1, 2008, and ending on December 31, 2009, in exchange (including an exchange resulting from a modification of the debt instrument) for an obligation which is not an applicable high yield discount obligation and the issuer (or obligor) of which is the same as the issuer (or obligor) of such applicable high yield discount obligation. The preceding sentence shall not apply to any obligation the interest on which is interest described in section 871(h)(4) (without regard to subparagraph (D) thereof) or to any obligation issued to a related person (within the meaning of section 108(e)(4)). “(ii) Successive application.— Any obligation to which clause (i) applies shall not be treated as an applicable high yield discount obligation for purposes of applying this subparagraph to any other obligation issued in exchange for such obligation. “(iii) Secretarial authority to suspend application.— The Secretary may apply this paragraph with respect to debt instruments issued in periods following the period described in clause (i) if the Secretary determines that such application is appropriate in light of distressed conditions in the debt capital markets.” . (b) Interest Rate Used in Determining High Yield Obligations.— The last sentence of section 163(i)(1) is amended— (1) by inserting “(i)” after “regulation”, and (2) by inserting “, or (ii) permit, on a temporary basis, a rate to be used with respect to any debt instrument which is higher than the applicable Federal rate if the Secretary determines that such rate is appropriate in light of distressed conditions in the debt capital markets” before the period at the end. (c) Effective Date.— (1) Suspension.— The amendments made by subsection (a) shall apply to obligations issued after August 31, 2008, in taxable years ending after such date. (2) Interest rate authority.— The amendments made by subsection (b) shall apply to obligations issued after December 31, 2009, in taxable years ending after such date. PART V— QUALIFIED SMALL BUSINESS STOCK SEC. 1241. SPECIAL RULES APPLICABLE TO QUALIFIED SMALL BUSINESS STOCK FOR 2009 AND 2010. (a) In General.— Section 1202(a) is amended by adding at the end the following new paragraph: “(3) Special rules for 2009 and 2010.— In the case of qualified small business stock acquired after the date of the enactment of this paragraph and before January 1, 2011— “(A) paragraph (1) shall be applied by substituting ‘75 percent’ for ‘50 percent’, and “(B) paragraph (2) shall not apply.” . (b) Effective Date.— The amendment made by this section shall apply to stock acquired after the date of the enactment of this Act. PART VI— S CORPORATIONS SEC. 1251. TEMPORARY REDUCTION IN RECOGNITION PERIOD FOR BUILT-IN GAINS TAX. (a) In General.— Paragraph (7) of section 1374(d) 26 USC 1374. (relating to definitions and special rules) is amended to read as follows: “(7) Recognition period.— “(A) In general.— The term ‘recognition period’ means the 10-year period beginning with the 1st day of the 1st taxable year for which the corporation was an S corporation. “(B) Special rule for 2009 and 2010.— In the case of any taxable year beginning in 2009 or 2010, no tax shall be imposed on the net recognized built-in gain of an S corporation if the 7th taxable year in the recognition period preceded such taxable year. Applicability. The preceding sentence shall be applied separately with respect to any asset to which paragraph (8) applies. “(C) Special rule for distributions to shareholders.— For purposes of applying this section to any amount includible in income by reason of distributions to shareholders pursuant to section 593(e)— “(i) subparagraph (A) shall be applied without regard to the phrase ‘10-year’, and “(ii) subparagraph (B) shall not apply.” . (b) Effective Date.— The amendment made by this section shall apply to taxable years beginning after December 31, 2008. PART VII— RULES RELATING TO OWNERSHIP CHANGES SEC. 1261. CLARIFICATION OF REGULATIONS RELATED TO LIMITATIONS ON CERTAIN BUILT-IN LOSSES FOLLOWING AN OWNERSHIP CHANGE. (a) Findings.— Congress finds as follows: (1) The delegation of authority to the Secretary of the Treasury under section 382(m) of the Internal Revenue Code of 1986 does not authorize the Secretary to provide exemptions or special rules that are restricted to particular industries or classes of taxpayers. (2) Internal Revenue Service Notice 2008–83 is inconsistent with the congressional intent in enacting such section 382(m). (3) The legal authority to prescribe Internal Revenue Service Notice 2008–83 is doubtful. (4) However, as taxpayers should generally be able to rely on guidance issued by the Secretary of the Treasury legislation is necessary to clarify the force and effect of Internal Revenue Service Notice 2008–83 and restore the proper application under the Internal Revenue Code of 1986 of the limitation on built-in losses following an ownership change of a bank. (b) Determination of Force and Effect of Internal Revenue Service Notice 2008–83 Exempting Banks From Limitation on Certain Built–in Losses Following Ownership Change.— (1) In general.— Internal Revenue Service Notice 2008–83— (A) shall be deemed to have the force and effect of law with respect to any ownership change (as defined in section 382(g) of the Internal Revenue Code of 1986) occurring on or before January 16, 2009, and (B) shall have no force or effect with respect to any ownership change after such date. (2) Binding contracts.— Notwithstanding paragraph (1), Internal Revenue Service Notice 2008–83 shall have the force and effect of law with respect to any ownership change (as so defined) which occurs after January 16, 2009, if such change— (A) is pursuant to a written binding contract entered into on or before such date, or (B) is pursuant to a written agreement entered into on or before such date and such agreement was described on or before such date in a public announcement or in a filing with the Securities and Exchange Commission required by reason of such ownership change. SEC. 1262. TREATMENT OF CERTAIN OWNERSHIP CHANGES FOR PURPOSES OF LIMITATIONS ON NET OPERATING LOSS CARRYFORWARDS AND CERTAIN BUILT-IN LOSSES. (a) In General.— Section 382 26 USC 382. is amended by adding at the end the following new subsection: “(n) Special Rule for Certain Ownership Changes.— “(1) In general.— The limitation contained in subsection (a) shall not apply in the case of an ownership change which is pursuant to a restructuring plan of a taxpayer which— “(A) is required under a loan agreement or a commitment for a line of credit entered into with the Department of the Treasury under the Emergency Economic Stabilization Act of 2008, and “(B) is intended to result in a rationalization of the costs, capitalization, and capacity with respect to the manufacturing workforce of, and suppliers to, the taxpayer and its subsidiaries. “(2) Subsequent acquisitions.— Paragraph (1) shall not apply in the case of any subsequent ownership change unless such ownership change is described in such paragraph. “(3) Limitation based on control in corporation.— “(A) In general.— Paragraph (1) shall not apply in the case of any ownership change if, immediately after such ownership change, any person (other than a voluntary employees’ beneficiary association under section 501(c)(9)) owns stock of the new loss corporation possessing 50 percent or more of the total combined voting power of all classes of stock entitled to vote, or of the total value of the stock of such corporation. “(B) Treatment of related persons.— “(i) In general.— Related persons shall be treated as a single person for purposes of this paragraph. “(ii) Related persons.— For purposes of clause (i), a person shall be treated as related to another person if— “(I) such person bears a relationship to such other person described in section 267(b) or 707(b), or “(II) such persons are members of a group of persons acting in concert.” . (b) Effective Date.— The amendment made by this section shall apply to ownership changes after the date of the enactment of this Act. Subtitle D— Manufacturing Recovery Provisions SEC. 1301. TEMPORARY EXPANSION OF AVAILABILITY OF INDUSTRIAL DEVELOPMENT BONDS TO FACILITIES MANUFACTURING INTANGIBLE PROPERTY. (a) In General.— Subparagraph (C) of section 144(a)(12) 26 USC 144. is amended— (1) by striking “For purposes of this paragraph, the term” and inserting “For purposes of this paragraph— “(i) In general.— The term” , and (2) by striking the last sentence and inserting the following new clauses: “(ii) Certain facilities included.— Such term includes facilities which are directly related and ancillary to a manufacturing facility (determined without regard to this clause) if— “(I) such facilities are located on the same site as the manufacturing facility, and “(II) not more than 25 percent of the net proceeds of the issue are used to provide such facilities. “(iii) Special rules for bonds issued in 2009 and 2010.— In the case of any issue made after the date of enactment of this clause and before January 1, 2011, clause (ii) shall not apply and the net proceeds from a bond shall be considered to be used to provide a manufacturing facility if such proceeds are used to provide— “(I) a facility which is used in the creation or production of intangible property which is described in section 197(d)(1)(C)(iii), or “(II) a facility which is functionally related and subordinate to a manufacturing facility (determined without regard to this subclause) if such facility is located on the same site as the manufacturing facility.” . (b) Effective Date.— The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act. SEC. 1302. CREDIT FOR INVESTMENT IN ADVANCED ENERGY FACILITIES. (a) In General.— Section 46 26 USC 46. (relating to amount of credit) is amended by striking “and” at the end of paragraph (3), by striking the period at the end of paragraph (4), and by adding at the end the following new paragraph: “(5) the qualifying advanced energy project credit.” . (b) Amount of Credit.— Subpart E of part IV of subchapter A of chapter 1 (relating to rules for computing investment credit) is amended by inserting after section 48B the following new section: “SEC. 48C. QUALIFYING ADVANCED ENERGY PROJECT CREDIT. “(a) In General.— For purposes of section 46, the qualifying advanced energy project credit for any taxable year is an amount equal to 30 percent of the qualified investment for such taxable year with respect to any qualifying advanced energy project of the taxpayer. “(b) Qualified Investment.— “(1) In general.— For purposes of subsection (a), the qualified investment for any taxable year is the basis of eligible property placed in service by the taxpayer during such taxable year which is part of a qualifying advanced energy project. “(2) Certain qualified progress expenditures rules made applicable.— Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this section. “(3) Limitation.— The amount which is treated for all taxable years with respect to any qualifying advanced energy project shall not exceed the amount designated by the Secretary as eligible for the credit under this section. “(c) Definitions.— “(1) Qualifying advanced energy project.— “(A) In general.— The term ‘qualifying advanced energy project’ means a project— “(i) which re-equips, expands, or establishes a manufacturing facility for the production of— “(I) property designed to be used to produce energy from the sun, wind, geothermal deposits (within the meaning of section 613(e)(2)), or other renewable resources, “(II) fuel cells, microturbines, or an energy storage system for use with electric or hybrid-electric motor vehicles, “(III) electric grids to support the transmission of intermittent sources of renewable energy, including storage of such energy, “(IV) property designed to capture and sequester carbon dioxide emissions, “(V) property designed to refine or blend renewable fuels or to produce energy conservation technologies (including energy-conserving lighting technologies and smart grid technologies), “(VI) new qualified plug-in electric drive motor vehicles (as defined by section 30D), qualified plug-in electric vehicles (as defined by section 30(d)), or components which are designed specifically for use with such vehicles, including electric motors, generators, and power control units, or “(VII) other advanced energy property designed to reduce greenhouse gas emissions as may be determined by the Secretary, and “(ii) any portion of the qualified investment of which is certified by the Secretary under subsection (d) as eligible for a credit under this section. “(B) Exception.— Such term shall not include any portion of a project for the production of any property which is used in the refining or blending of any transportation fuel (other than renewable fuels). “(2) Eligible property.— The term ‘eligible property’ means any property— “(A) which is necessary for the production of property described in paragraph (1)(A)(i), “(B) which is— “(i) tangible personal property, or “(ii) other tangible property (not including a building or its structural components), but only if such property is used as an integral part of the qualified investment credit facility, and “(C) with respect to which depreciation (or amortization in lieu of depreciation) is allowable. “(d) Qualifying Advanced Energy Project Program.— “(1) Establishment.— “(A) In general.— Not later Deadline. than 180 days after the date of enactment of this section, the Secretary, in consultation with the Secretary of Energy, shall establish a qualifying advanced energy project program to consider and award certifications for qualified investments eligible for credits under this section to qualifying advanced energy project sponsors. “(B) Limitation.— The total amount of credits that may be allocated under the program shall not exceed $2,300,000,000. “(2) Certification.— “(A) Application period.— Each applicant for certification under this paragraph shall submit an application containing such information as the Secretary may require during the 2-year period beginning on the date the Secretary establishes the program under paragraph (1). “(B) Time to meet criteria for certification.— Each applicant for certification shall have 1 year from the date of acceptance by the Secretary of the application during which to provide to the Secretary evidence that the requirements of the certification have been met. “(C) Period of issuance.— An applicant which receives a certification shall have 3 years from the date of issuance of the certification in order to place the project in service and if such project is not placed in service by that time period, then the certification shall no longer be valid. “(3) Selection criteria.— In determining which qualifying advanced energy projects to certify under this section, the Secretary— “(A) shall take into consideration only those projects where there is a reasonable expectation of commercial viability, and “(B) shall take into consideration which projects— “(i) will provide the greatest domestic job creation (both direct and indirect) during the credit period, “(ii) will provide the greatest net impact in avoiding or reducing air pollutants or anthropogenic emissions of greenhouse gases, “(iii) have the greatest potential for technological innovation and commercial deployment, “(iv) have the lowest levelized cost of generated or stored energy, or of measured reduction in energy consumption or greenhouse gas emission (based on costs of the full supply chain), and “(v) have the shortest project time from certification to completion. “(4) Review and redistribution.— “(A) Review.— Not later than 4 years after the date of enactment of this section, the Secretary shall review the credits allocated under this section as of such date. “(B) Redistribution.— The Secretary may reallocate credits awarded under this section if the Secretary determines that— “(i) there is an insufficient quantity of qualifying applications for certification pending at the time of the review, or “(ii) any certification made pursuant to paragraph (2) has been revoked pursuant to paragraph (2)(B) because the project subject to the certification has been delayed as a result of third party opposition or litigation to the proposed project. “(C) Reallocation.— If the Secretary determines that credits under this section are available for reallocation pursuant to the requirements set forth in paragraph (2), the Secretary is authorized to conduct an additional program for applications for certification. “(5) Disclosure of allocations.— The Secretary shall, upon making a certification under this subsection, publicly disclose the identity of the applicant and the amount of the credit with respect to such applicant. “(e) Denial of Double Benefit.— A credit shall not be allowed under this section for any qualified investment for which a credit is allowed under section 48, 48A, or 48B.” . (c) Conforming Amendments.— (1) Section 49(a)(1)(C) 26 USC 49. is amended by striking “and” at the end of clause (iii), by striking the period at the end of clause (iv) and inserting “, and”, and by adding after clause (iv) the following new clause: “(v) the basis of any property which is part of a qualifying advanced energy project under section 48C.” . (2) The table of sections for subpart E of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 48B the following new item: “48C. Qualifying advanced energy project credit.”. (d) Effective Date.— The amendments made by this section shall apply to periods after the date of the enactment of this Act, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990). Subtitle E— Economic Recovery Tools SEC. 1401. RECOVERY ZONE BONDS. (a) In General.— Subchapter Y of chapter 1 is amended by adding at the end the following new part: “PART III— RECOVERY ZONE BONDS “Sec. 1400U–1.  Allocation of recovery zone bonds. “Sec. 1400U–2.  Recovery zone economic development bonds. “Sec. 1400U–3.  Recovery zone facility bonds. “SEC. 1400U–1. ALLOCATION OF RECOVERY ZONE BONDS. “(a) Allocations.— “(1) In general.— “(A) General allocation.— The Secretary shall allocate the national recovery zone economic development bond limitation and the national recovery zone facility bond limitation among the States in the proportion that each such State’s 2008 State employment decline bears to the aggregate of the 2008 State employment declines for all of the States. “(B) Minimum allocation.— The Secretary shall adjust the allocations under subparagraph (A) for any calendar year for each State to the extent necessary to ensure that no State receives less than 0.9 percent of the national recovery zone economic development bond limitation and 0.9 percent of the national recovery zone facility bond limitation. “(2) 2008 state employment decline.— For purposes of this subsection, the term ‘2008 State employment decline’ means, with respect to any State, the excess (if any) of— “(A) the number of individuals employed in such State determined for December 2007, over “(B) the number of individuals employed in such State determined for December 2008. “(3) Allocations by states.— “(A) In general.— Each State with respect to which an allocation is made under paragraph (1) shall reallocate such allocation among the counties and large municipalities in such State in the proportion to each such county’s or municipality’s 2008 employment decline bears to the aggregate of the 2008 employment declines for all the counties and municipalities in such State. Waiver authority. A county or municipality may waive any portion of an allocation made under this subparagraph. “(B) Large municipalities.— For purposes of subparagraph (A), the term ‘large municipality’ means a municipality with a population of more than 100,000. “(C) Determination of local employment declines.— For purposes of this paragraph, the employment decline of any municipality or county shall be determined in the same manner as determining the State employment decline under paragraph (2), except that in the case of a municipality any portion of which is in a county, such portion shall be treated as part of such municipality and not part of such county. “(4) National limitations.— “(A) Recovery zone economic development bonds.— There is a national recovery zone economic development bond limitation of $10,000,000,000. “(B) Recovery zone facility bonds.— There is a national recovery zone facility bond limitation of $15,000,000,000. “(b) Recovery Zone.— For purposes of this part, the term ‘recovery zone’ means— “(1) any area designated by the issuer as having significant poverty, unemployment, rate of home foreclosures, or general distress, “(2) any area designated by the issuer as economically distressed by reason of the closure or realignment of a military installation pursuant to the Defense Base Closure and Realignment Act of 1990, and “(3) any area for which a designation as an empowerment zone or renewal community is in effect. “SEC. 1400U–2. RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS. “(a) In General.— In the case of a recovery zone economic development bond— “(1) such bond shall be treated as a qualified bond for purposes of section 6431, and “(2) subsection (b) of such section shall be applied by substituting ‘45 percent’ for ‘35 percent’. “(b) Recovery Zone Economic Development Bond.— “(1) In general.— For purposes of this section, the term ‘recovery zone economic development bond’ means any build America bond (as defined in section 54AA(d)) issued before January 1, 2011, as part of issue if— “(A) 100 percent of the excess of— “(i) the available project proceeds (as defined in section 54A) of such issue, over “(ii) the amounts in a reasonably required reserve (within the meaning of section 150(a)(3)) with respect to such issue, are to be used for one or more qualified economic development purposes, and “(B) the issuer designates such bond for purposes of this section. “(2) Limitation on amount of bonds designated.— The maximum aggregate face amount of bonds which may be designated by any issuer under paragraph (1) shall not exceed the amount of the recovery zone economic development bond limitation allocated to such issuer under section 1400U–1. “(c) Qualified Economic Development Purpose.— For purposes of this section, the term ‘qualified economic development purpose’ means expenditures for purposes of promoting development or other economic activity in a recovery zone, including— “(1) capital expenditures paid or incurred with respect to property located in such zone, “(2) expenditures for public infrastructure and construction of public facilities, and “(3) expenditures for job training and educational programs. “SEC. 1400U–3. RECOVERY ZONE FACILITY BONDS. “(a) In General.— For purposes of part IV of subchapter B (relating to tax exemption requirements for State and local bonds), the term ‘exempt facility bond’ includes any recovery zone facility bond. “(b) Recovery Zone Facility Bond.— “(1) In general.— For purposes of this section, the term ‘recovery zone facility bond’ means any bond issued as part of an issue if— “(A) 95 percent or more of the net proceeds (as defined in section 150(a)(3)) of such issue are to be used for recovery zone property, “(B) such bond is issued before January 1, 2011, and “(C) the issuer designates such bond for purposes of this section. “(2) Limitation on amount of bonds designated.— The maximum aggregate face amount of bonds which may be designated by any issuer under paragraph (1) shall not exceed the amount of recovery zone facility bond limitation allocated to such issuer under section 1400U–1. “(c) Recovery Zone Property.— For purposes of this section— “(1) In general.— The term ‘recovery zone property’ means any property to which section 168 applies (or would apply but for section 179) if— “(A) such property was constructed, reconstructed, renovated, or acquired by purchase (as defined in section 179(d)(2)) by the taxpayer after the date on which the designation of the recovery zone took effect, “(B) the original use of which in the recovery zone commences with the taxpayer, and “(C) substantially all of the use of which is in the recovery zone and is in the active conduct of a qualified business by the taxpayer in such zone. “(2) Qualified business.— The term ‘qualified business’ means any trade or business except that— “(A) the rental to others of real property located in a recovery zone shall be treated as a qualified business only if the property is not residential rental property (as defined in section 168(e)(2)), and “(B) such term shall not include any trade or business consisting of the operation of any facility described in section 144(c)(6)(B). “(3) Special rules for substantial renovations and sale-leaseback.— Rules similar Applicability. to the rules of subsections (a)(2) and (b) of section 1397D shall apply for purposes of this subsection. “(d) Nonapplication of Certain Rules.— Sections 146 (relating to volume cap) and 147(d) (relating to acquisition of existing property not permitted) shall not apply to any recovery zone facility bond.” . (b) Clerical Amendment.— The table of parts for subchapter Y of chapter 1 of such Code is amended by adding at the end the following new item: “Part III. Recovery Zone Bonds.”. (c) Effective Date.— The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act. SEC. 1402. TRIBAL ECONOMIC DEVELOPMENT BONDS. (a) In General.— Section 7871 26 USC 7871. is amended by adding at the end the following new subsection: “(f) Tribal Economic Development Bonds.— “(1) Allocation of limitation.— “(A) In general.— The Secretary shall allocate the national tribal economic development bond limitation among the Indian tribal governments in such manner as the Secretary, in consultation with the Secretary of the Interior, determines appropriate. “(B) National limitation.— There is a national tribal economic development bond limitation of $2,000,000,000. “(2) Bonds treated as exempt from tax.— In the case of a tribal economic development bond— “(A) notwithstanding subsection (c), such bond shall be treated for purposes of this title in the same manner as if such bond were issued by a State, “(B) the Indian tribal government issuing such bond and any instrumentality of such Indian tribal government shall be treated as a State for purposes of section 141, and “(C) section 146 shall not apply. “(3) Tribal economic development bond.— “(A) In general.— For purposes of this section, the term ‘tribal economic development bond’ means any bond issued by an Indian tribal government— “(i) the interest on which would be exempt from tax under section 103 if issued by a State or local government, and “(ii) which is designated by the Indian tribal government as a tribal economic development bond for purposes of this subsection. “(B) Exceptions.— Such term shall not include any bond issued as part of an issue if any portion of the proceeds of such issue are used to finance— “(i) any portion of a building in which class II or class III gaming (as defined in section 4 of the Indian Gaming Regulatory Act) is conducted or housed or any other property actually used in the conduct of such gaming, or “(ii) any facility located outside the Indian reservation (as defined in section 168(j)(6)). “(C) Limitation on amount of bonds designated.— The maximum aggregate face amount of bonds which may be designated by any Indian tribal government under subparagraph (A) shall not exceed the amount of national tribal economic development bond limitation allocated to such government under paragraph (1).” . (b) Study.— The Secretary of the Treasury, or the Secretary’s delegate, shall conduct a study of the effects of the amendment made by subsection (a). Deadline. Reports. Not later than 1 year after the date of the enactment of this Act, the Secretary of the Treasury, or the Secretary’s delegate, shall report to Congress on the results of the study conducted under this paragraph, including the Secretary’s recommendations regarding such amendment. (c) Effective Date.— The amendment made by subsection (a) shall apply to obligations issued after the date of the enactment of this Act. SEC. 1403. INCREASE IN NEW MARKETS TAX CREDIT. (a) In General.— Section 45D(f)(1) 26 USC 45. is amended— (1) by striking “and” at the end of subparagraph (C), (2) by striking “, 2007, 2008, and 2009.” in subparagraph (D), and inserting “and 2007,”, and (3) by adding at the end the following new subparagraphs: “(E) $5,000,000,000 for 2008, and “(F) $5,000,000,000 for 2009.” . (b) Special Rule for Allocation of Increased 2008 Limitation.— The amount of the increase in the new markets tax credit limitation for calendar year 2008 by reason of the amendments made by subsection (a) shall be allocated in accordance with section 45D(f)(2) of the Internal Revenue Code of 1986 to qualified community development entities (as defined in section 45D(c) of such Code) which— (1) submitted an allocation application with respect to calendar year 2008, and (2) (A) did not receive an allocation for such calendar year, or (B) received an allocation for such calendar year in an amount less than the amount requested in the allocation application. SEC. 1404. COORDINATION OF LOW-INCOME HOUSING CREDIT AND LOW-INCOME HOUSING GRANTS.   Subsection (i) of section 42 is amended by adding at the end the following new paragraph: “(9) Coordination with low-income housing grants.— “(A) Reduction in state housing credit ceiling for low-income housing grants received in 2009.— For purposes of this section, the amounts described in clauses (i) through (iv) of subsection (h)(3)(C) with respect to any State for 2009 shall each be reduced by so much of such amount as is taken into account in determining the amount of any grant to such State under section 1602 of the American Recovery and Reinvestment Tax Act of 2009. “(B) Special rule for basis.— Basis of a qualified low-income building shall not be reduced by the amount of any grant described in subparagraph (A).” . Subtitle F— Infrastructure Financing Tools PART I— IMPROVED MARKETABILITY FOR TAX-EXEMPT BONDS SEC. 1501. DE MINIMIS SAFE HARBOR EXCEPTION FOR TAX-EXEMPT INTEREST EXPENSE OF FINANCIAL INSTITUTIONS. (a) In General.— Subsection (b) of section 265 26 USC 265. is amended by adding at the end the following new paragraph: “(7) De minimis exception for bonds issued during 2009 or 2010.— “(A) In general.— In applying paragraph (2)(A), there shall not be taken into account tax-exempt obligations issued during 2009 or 2010. “(B) Limitation.— The amount of tax-exempt obligations not taken into account by reason of subparagraph (A) shall not exceed 2 percent of the amount determined under paragraph (2)(B). “(C) Refundings.— For purposes of this paragraph, a refunding bond (whether a current or advance refunding) shall be treated as issued on the date of the issuance of the refunded bond (or in the case of a series of refundings, the original bond).” . (b) Treatment as Financial Institution Preference Item.— Clause (iv) of section 291(e)(1)(B) is amended by adding at the end the following: “That portion of any obligation not taken into account under paragraph (2)(A) of section 265(b) by reason of paragraph (7) of such section shall be treated for purposes of this section as having been acquired on August 7, 1986.”. (c) Effective Date.— The amendments made by this section shall apply to obligations issued after December 31, 2008. SEC. 1502. MODIFICATION OF SMALL ISSUER EXCEPTION TO TAX-EXEMPT INTEREST EXPENSE ALLOCATION RULES FOR FINANCIAL INSTITUTIONS. (a) In General.— Paragraph (3) of section 265(b) (relating to exception for certain tax-exempt obligations) is amended by adding at the end the following new subparagraph: “(G) Special rules for obligations issued during 2009 and 2010.— “(i) Increase in limitation.— In the Applicability. case of obligations issued during 2009 or 2010, subparagraphs (C)(i), (D)(i), and (D)(iii)(II) shall each be applied by substituting ‘$30,000,000’ for ‘$10,000,000’. “(ii) Qualified 501(c)(3) bonds treated as issued by exempt organization.— In the Applicability. case of a qualified 501(c)(3) bond (as defined in section 145) issued during 2009 or 2010, this paragraph shall be applied by treating the 501(c)(3) organization for whose benefit such bond was issued as the issuer. “(iii) Special rule for qualified financings.— In the case of a qualified financing issue issued during 2009 or 2010— “(I) subparagraph (F) shall not apply, and “(II) any obligation issued as a part of such issue shall be treated as a qualified tax-exempt obligation if the requirements of this paragraph are met with respect to each qualified portion of the issue (determined by treating each qualified portion as a separate issue which is issued by the qualified borrower with respect to which such portion relates). “(iv) Qualified financing issue.— For purposes of this subparagraph, the term ‘qualified financing issue’ means any composite, pooled, or other conduit financing issue the proceeds of which are used directly or indirectly to make or finance loans to 1 or more ultimate borrowers each of whom is a qualified borrower. “(v) Qualified portion.— For purposes of this subparagraph, the term ‘qualified portion’ means that portion of the proceeds which are used with respect to each qualified borrower under the issue. “(vi) Qualified borrower.— For purposes of this subparagraph, the term ‘qualified borrower’ means a borrower which is a State or political subdivision thereof or an organization described in section 501(c)(3) and exempt from taxation under section 501(a).” . (b) Effective Date.— The amendment made by this section shall apply to obligations issued after December 31, 2008. SEC. 1503. TEMPORARY MODIFICATION OF ALTERNATIVE MINIMUM TAX LIMITATIONS ON TAX-EXEMPT BONDS. (a) Interest on Private Activity Bonds Issued During 2009 and 2010 Not Treated as Tax Preference Item.— Subparagraph (C) of section 57(a)(5) 26 USC 57. is amended by adding at the end a new clause: “(vi) Exception for bonds issued in 2009 and 2010.— “(I) In general.— For purposes of clause (i), the term ‘private activity bond’ shall not include any bond issued after December 31, 2008, and before January 1, 2011. “(II) Treatment of refunding bonds.— For purposes of subclause (I), a refunding bond (whether a current or advance refunding) shall be treated as issued on the date of the issuance of the refunded bond (or in the case of a series of refundings, the original bond). “(III) Exception for certain refunding bonds.— Subclause (II) shall not apply to any refunding bond which is issued to refund any bond which was issued after December 31, 2003, and before January 1, 2009.” . (b) No Adjustment to Adjusted Current Earnings for Interest on Tax-Exempt Bonds Issued During 2009 and 2010.— Subparagraph (B) of section 56(g)(4) is amended by adding at the end the following new clause: “(iv) Tax exempt interest on bonds issued in 2009 and 2010.— “(I) In general.— Clause (i) shall not apply in the case of any interest on a bond issued after December 31, 2008, and before January 1, 2011. “(II) Treatment of refunding bonds.— For purposes of subclause (I), a refunding bond (whether a current or advance refunding) shall be treated as issued on the date of the issuance of the refunded bond (or in the case of a series of refundings, the original bond). “(III) Exception for certain refunding bonds.— Subclause (II) shall not apply to any refunding bond which is issued to refund any bond which was issued after December 31, 2003, and before January 1, 2009.” . (c) Effective Date.— The amendments made by this section shall apply to obligations issued after December 31, 2008. SEC. 1504. MODIFICATION TO HIGH SPEED INTERCITY RAIL FACILITY BONDS. (a) In General.— Paragraph (1) of section 142(i) 26 USC 142. is amended by striking “operate at speeds in excess of” and inserting “be capable of attaining a maximum speed in excess of”. (b) Effective Date.— The amendment made by this section shall apply to obligations issued after the date of the enactment of this Act. PART II— DELAY IN APPLICATION OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS SEC. 1511. DELAY IN APPLICATION OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS.   Subsection (b) of section 511 of the Tax Increase Prevention and Reconciliation Act of 2005 26 USC 3402. is amended by striking “December 31, 2010” and inserting “December 31, 2011”. PART III— TAX CREDIT BONDS FOR SCHOOLS SEC. 1521. QUALIFIED SCHOOL CONSTRUCTION BONDS. (a) In General.— Subpart I of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section: “SEC. 54F. QUALIFIED SCHOOL CONSTRUCTION BONDS. “(a) Qualified School Construction Bond.— For purposes of this subchapter, the term ‘qualified school construction bond’ means any bond issued as part of an issue if— “(1) 100 percent of the available project proceeds of such issue are to be used for the construction, rehabilitation, or repair of a public school facility or for the acquisition of land on which such a facility is to be constructed with part of the proceeds of such issue, “(2) the bond is issued by a State or local government within the jurisdiction of which such school is located, and “(3) the issuer designates such bond for purposes of this section. “(b) Limitation on Amount of Bonds Designated.— The maximum aggregate face amount of bonds issued during any calendar year which may be designated under subsection (a) by any issuer shall not exceed the limitation amount allocated under subsection (d) for such calendar year to such issuer. “(c) National Limitation on Amount of Bonds Designated.— There is a national qualified school construction bond limitation for each calendar year. Such limitation is— “(1) $11,000,000,000 for 2009, “(2) $11,000,000,000 for 2010, and “(3) except as provided in subsection (e), zero after 2010. “(d) Allocation of Limitation.— “(1) Allocation among states.— Except as provided in paragraph (2)(C), the limitation applicable under subsection (c) for any calendar year shall be allocated by the Secretary among the States in proportion to the respective amounts each such State is eligible to receive under section 1124 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6333) for the most recent fiscal year ending before such calendar year. The limitation amount allocated to a State under the preceding sentence shall be allocated by the State to issuers within such State. “(2) 40 percent of limitation allocated among largest school districts.— “(A) In general.— 40 percent of the limitation applicable under subsection (c) for any calendar year shall be allocated under subparagraph (B) by the Secretary among local educational agencies which are large local educational agencies for such year. “(B) Allocation formula.— The amount to be allocated under subparagraph (A) for any calendar year shall be allocated among large local educational agencies in proportion to the respective amounts each such agency received under section 1124 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6333) for the most recent fiscal year ending before such calendar year. “(C) Reduction in state allocation.— The allocation to any State under paragraph (1) shall be reduced by the aggregate amount of the allocations under this paragraph to large local educational agencies within such State. “(D) Allocation of unused limitation to state.— The amount allocated under this paragraph to a large local educational agency for any calendar year may be reallocated by such agency to the State in which such agency is located for such calendar year. Any amount reallocated to a State under the preceding sentence may be allocated as provided in paragraph (1). “(E) Large local educational agency.— For purposes of this paragraph, the term ‘large local educational agency’ means, with respect to a calendar year, any local educational agency if such agency is— “(i) among the 100 local educational agencies with the largest numbers of children aged 5 through 17 from families living below the poverty level, as determined by the Secretary using the most recent data available from the Department of Commerce that are satisfactory to the Secretary, or “(ii) 1 of not more than 25 local educational agencies (other than those described in clause (i)) that the Secretary of Education determines (based on the most recent data available satisfactory to the Secretary) are in particular need of assistance, based on a low level of resources for school construction, a high level of enrollment growth, or such other factors as the Secretary deems appropriate. “(3) Allocations to certain possessions.— The amount to be allocated under paragraph (1) to any possession of the United States other than Puerto Rico shall be the amount which would have been allocated if all allocations under paragraph (1) were made on the basis of respective populations of individuals below the poverty line (as defined by the Office of Management and Budget). In making other allocations, the amount to be allocated under paragraph (1) shall be reduced by the aggregate amount allocated under this paragraph to possessions of the United States. “(4) Allocations for indian schools.— In addition to the amounts otherwise allocated under this subsection, $200,000,000 for calendar year 2009, and $200,000,000 for calendar year 2010, shall be allocated by the Secretary of the Interior for purposes of the construction, rehabilitation, and repair of schools funded by the Bureau of Indian Affairs. In the case of amounts allocated under the preceding sentence, Indian tribal governments (as defined in section 7701(a)(40)) shall be treated as qualified issuers for purposes of this subchapter. “(e) Carryover of Unused Limitation.— If for any calendar year— “(1) the amount allocated under subsection (d) to any State, exceeds “(2) the amount of bonds issued during such year which are designated under subsection (a) pursuant to such allocation, the limitation amount under such subsection for such State for the following calendar year shall be increased by the amount of such excess. Applicability. A similar rule shall apply to the amounts allocated under subsection (d)(4).” . (b) Conforming Amendments.— (1) Paragraph (1) of section 54A(d) 26 USC 54. is amended by striking “or” at the end of subparagraph (C), by inserting “or” at the end of subparagraph (D), and by inserting after subparagraph (D) the following new subparagraph: “(E) a qualified school construction bond,” . (2) Subparagraph (C) of section 54A(d)(2) is amended by striking “and” at the end of clause (iii), by striking the period at the end of clause (iv) and inserting “, and”, and by adding at the end the following new clause: “(v) in the case of a qualified school construction bond, a purpose specified in section 54F(a)(1).” . (3) The table of sections for subpart I of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item: “Sec. 54F.  Qualified school construction bonds.”. (c) Effective Date.— The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act. SEC. 1522. EXTENSION AND EXPANSION OF QUALIFIED ZONE ACADEMY BONDS. (a) In General.— Section 54E(c)(1) 26 USC 54. is amended by striking “and 2009” and inserting “and $1,400,000,000 for 2009 and 2010”. (b) Effective Date.— The amendment made by this section shall apply to obligations issued after December 31, 2008. PART IV— BUILD AMERICA BONDS SEC. 1531. BUILD AMERICA BONDS. (a) In General.— Part IV of subchapter A of chapter 1 is amended by adding at the end the following new subpart: “Subpart J— Build America Bonds “Sec. 54AA.  Build America bonds. “SEC. 54AA. BUILD AMERICA BONDS. “(a) In General.— If a taxpayer holds a build America bond on one or more interest payment dates of the bond during any taxable year, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the credits determined under subsection (b) with respect to such dates. “(b) Amount of Credit.— The amount of the credit determined under this subsection with respect to any interest payment date for a build America bond is 35 percent of the amount of interest payable by the issuer with respect to such date . “(c) Limitation Based on Amount of Tax.— “(1) In general.— The credit allowed under subsection (a) for any taxable year shall not exceed the excess of— “(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over “(B) the sum of the credits allowable under this part (other than subpart C and this subpart). “(2) Carryover of unused credit.— If the credit allowable under subsection (a) exceeds the limitation imposed by paragraph (1) for such taxable year, such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such taxable year (determined before the application of paragraph (1) for such succeeding taxable year). “(d) Build America Bond.— “(1) In general.— For purposes of this section, the term ‘build America bond’ means any obligation (other than a private activity bond) if— “(A) the interest on such obligation would (but for this section) be excludable from gross income under section 103, “(B) such obligation is issued before January 1, 2011, and “(C) the issuer makes an irrevocable election to have this section apply. “(2) Applicable rules.— For purposes of applying paragraph (1)— “(A) for purposes of section 149(b), a build America bond shall not be treated as federally guaranteed by reason of the credit allowed under subsection (a) or section 6431, “(B) for purposes of section 148, the yield on a build America bond shall be determined without regard to the credit allowed under subsection (a), and “(C) a bond shall not be treated as a build America bond if the issue price has more than a de minimis amount (determined under rules similar to the rules of section 1273(a)(3)) of premium over the stated principal amount of the bond. “(e) Interest Payment Date.— For purposes of this section, the term ‘interest payment date’ means any date on which the holder of record of the build America bond is entitled to a payment of interest under such bond. “(f) Special Rules.— “(1) Interest on build america bonds includible in gross income for federal income tax purposes.— For purposes of this title, interest on any build America bond shall be includible in gross income. “(2) Application of certain rules.— Rules similar to the rules of subsections (f), (g), (h), and (i) of section 54A shall apply for purposes of the credit allowed under subsection (a). “(g) Special Rule for Qualified Bonds Issued Before 2011.— In the case of a qualified bond issued before January 1, 2011— “(1) Issuer allowed refundable credit.— In lieu of any credit allowed under this section with respect to such bond, the issuer of such bond shall be allowed a credit as provided in section 6431. “(2) Qualified bond.— For purposes of this subsection, the term ‘qualified bond’ means any build America bond issued as part of an issue if— “(A) 100 percent of the excess of— “(i) the available project proceeds (as defined in section 54A) of such issue, over “(ii) the amounts in a reasonably required reserve (within the meaning of section 150(a)(3)) with respect to such issue, are to be used for capital expenditures, and “(B) the issuer makes an irrevocable election to have this subsection apply. “(h) Regulations.— The Secretary may prescribe such regulations and other guidance as may be necessary or appropriate to carry out this section and section 6431.” . (b) Credit for Qualified Bonds Issued Before 2011.— Subchapter B of chapter 65 is amended by adding at the end the following new section: “SEC. 6431. CREDIT FOR QUALIFIED BONDS ALLOWED TO ISSUER. “(a) In General.— In the case of a qualified bond issued before January 1, 2011, the issuer of such bond shall be allowed a credit with respect to each interest payment under such bond which shall be payable by the Secretary as provided in subsection (b). “(b) Payment of Credit.— The Secretary shall pay (contemporaneously with each interest payment date under such bond) to the issuer of such bond (or to any person who makes such interest payments on behalf of the issuer) 35 percent of the interest payable under such bond on such date. “(c) Application of Arbitrage Rules.— For purposes of section 148, the yield on a qualified bond shall be reduced by the credit allowed under this section. “(d) Interest Payment Date.— For purposes of this subsection, the term ‘interest payment date’ means each date on which interest is payable by the issuer under the terms of the bond. “(e) Qualified Bond.— For purposes of this subsection, the term ‘qualified bond’ has the meaning given such term in section 54AA(g).” . (c) Conforming Amendments.— (1) Section 1324(b)(2) of title 31, United States Code, is amended by striking “or 6428” and inserting “6428, or 6431,”. (2) Section 54A(c)(1)(B) 26 USC 54. is amended by striking “subpart C” and inserting “subparts C and J”. (3) Sections 54(c)(2), 1397E(c)(2), and 1400N(l)(3)(B) are each amended by striking “and I” and inserting “, I, and J”. (4) Section 6211(b)(4)(A) is amended by striking “and 6428” and inserting “6428, and 6431”. (5) Section 6401(b)(1) is amended by striking “and I” and inserting “I, and J”. (6) The table of subparts for part IV of subchapter A of chapter 1 is amended by adding at the end the following new item: “subpart j. build america bonds.”. (7) The table of section for subchapter B of chapter 65 is amended by adding at the end the following new item: “Sec. 6431.  Credit for qualified bonds allowed to issuer.”. (d) Transitional Coordination With State Law.— Except as otherwise provided by a State after the date of the enactment of this Act, the interest on any build America bond (as defined in section 54AA of the Internal Revenue Code of 1986, as added by this section) and the amount of any credit determined under such section with respect to such bond shall be treated for purposes of the income tax laws of such State as being exempt from Federal income tax. (e) Effective Date.— The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act. PART V— REGULATED INVESTMENT COMPANIES ALLOWED TO PASS-THRU TAX CREDIT BOND CREDITS SEC. 1541. REGULATED INVESTMENT COMPANIES ALLOWED TO PASS-THRU TAX CREDIT BOND CREDITS. (a) In General.— Part I of subchapter M of chapter 1 is amended by inserting after section 853 the following new section: “SEC. 853A. CREDITS FROM TAX CREDIT BONDS ALLOWED TO SHAREHOLDERS. “(a) General Rule.— A regulated investment company— “(1) which holds (directly or indirectly) one or more tax credit bonds on one or more applicable dates during the taxable year, and “(2) which meets the requirements of section 852(a) for the taxable year, may elect the application of this section with respect to credits allowable to the investment company during such taxable year with respect to such bonds. “(b) Effect of Election.— If the election provided in subsection (a) is in effect for any taxable year— “(1) the regulated investment company shall not be allowed any credits to which subsection (a) applies for such taxable year, “(2) the regulated investment company shall— “(A) include in gross income (as interest) for such taxable year an amount equal to the amount that such investment company would have included in gross income with respect to such credits if this section did not apply, and “(B) increase the amount of the dividends paid deduction for such taxable year by the amount of such income, and “(3) each shareholder of such investment company shall— “(A) include in gross income an amount equal to such shareholder’s proportionate share of the interest income attributable to such credits, and “(B) be allowed the shareholder’s proportionate share of such credits against the tax imposed by this chapter. “(c) Notice to Shareholders.— For purposes of subsection (b)(3), the shareholder’s proportionate share of— “(1) credits described in subsection (a), and “(2) gross income in respect of such credits, shall not exceed the amounts so designated by the regulated investment company in a written notice mailed to its shareholders not later than 60 days after the close of its taxable year. “(d) Manner of Making Election and Notifying Shareholders.— The election provided in subsection (a) and the notice to shareholders required by subsection (c) shall be made in such manner as the Secretary may prescribe. “(e) Definitions and Special Rules.— “(1) Definitions.— For purposes of this subsection— “(A) Tax credit bond.— The term ‘tax credit bond’ means— “(i) a qualified tax credit bond (as defined in section 54A(d)), “(ii) a build America bond (as defined in section 54AA(d)), and “(iii) any bond for which a credit is allowable under subpart H of part IV of subchapter A of this chapter. “(B) Applicable date.— The term ‘applicable date’ means— “(i) in the case of a qualified tax credit bond or a bond described in subparagraph (A)(iii), any credit allowance date (as defined in section 54A(e)(1)), and “(ii) in the case of a build America bond (as defined in section 54AA(d)), any interest payment date (as defined in section 54AA(e)). “(2) Stripped tax credit bonds.— If the ownership of a tax credit bond is separated from the credit with respect to such bond, subsection (a) shall be applied by reference to the instruments evidencing the entitlement to the credit rather than the tax credit bond. “(f) Regulations, etc.— The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including methods for determining a shareholder’s proportionate share of credits.” . (b) Conforming Amendments.— (1) Section 54(l) 26 USC 54. is amended by striking paragraph (4) and by redesignating paragraphs (5) and (6) as paragraphs (4) and (5), respectively. (2) Section 54A(h) is amended to read as follows: “(h) Bonds Held by Real Estate Investment Trusts.— If any qualified tax credit bond is held by a real estate investment trust, the credit determined under subsection (a) shall be allowed to beneficiaries of such trust (and any gross income included under subsection (f) with respect to such credit shall be distributed to such beneficiaries) under procedures prescribed by the Secretary.” . (3) The table of sections for part I of subchapter M of chapter 1 is amended by inserting after the item relating to section 853 the following new item: “Sec. 853A.  Credits from tax credit bonds allowed to shareholders.”. (c) Effective Date.— The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act. Subtitle G— Other Provisions SEC. 1601. APPLICATION OF CERTAIN LABOR STANDARDS TO PROJECTS FINANCED WITH CERTAIN TAX-FAVORED BONDS.   Subchapter IV of chapter 31 of the title 40, United States Code, shall apply to projects financed with the proceeds of— (1) any new clean renewable energy bond (as defined in section 54C of the Internal Revenue Code of 1986) issued after the date of the enactment of this Act, (2) any qualified energy conservation bond (as defined in section 54D of the Internal Revenue Code of 1986) issued after the date of the enactment of this Act, (3) any qualified zone academy bond (as defined in section 54E of the Internal Revenue Code of 1986) issued after the date of the enactment of this Act, (4) any qualified school construction bond (as defined in section 54F of the Internal Revenue Code of 1986), and (5) any recovery zone economic development bond (as defined in section 1400U–2 of the Internal Revenue Code of 1986). SEC. 1602. GRANTS TO STATES FOR LOW-INCOME HOUSING PROJECTS IN LIEU OF LOW-INCOME HOUSING CREDIT ALLOCATIONS FOR 2009. (a) In General.— The Secretary of the Treasury shall make a grant to the housing credit agency of each State in an amount equal to such State’s low-income housing grant election amount. (b) Low-Income Housing Grant Election Amount.— For purposes of this section, the term “low-income housing grant election amount” means, with respect to any State, such amount as the State may elect which does not exceed 85 percent of the product of— (1) the sum of— (A) 100 percent of the State housing credit ceiling for 2009 which is attributable to amounts described in clauses (i) and (iii) of section 42(h)(3)(C) of the Internal Revenue Code of 1986, and (B) 40 percent of the State housing credit ceiling for 2009 which is attributable to amounts described in clauses (ii) and (iv) of such section, multiplied by (2) 10. (c) Subawards for Low-Income Buildings.— (1) In general.— A State housing credit agency receiving a grant under this section shall use such grant to make subawards to finance the construction or acquisition and rehabilitation of qualified low-income buildings. A subaward under this section may be made to finance a qualified low-income building with or without an allocation under section 42 of the Internal Revenue Code of 1986, except that a State housing credit agency may make subawards to finance qualified low-income buildings without an allocation only if it makes a determination that such use will increase the total funds available to the State to build and rehabilitate affordable housing. Procedures. In complying with such determination requirement, a State housing credit agency shall establish a process in which applicants that are allocated credits are required to demonstrate good faith efforts to obtain investment commitments for such credits before the agency makes such subawards. (2) Subawards subject to same requirements as low-income housing credit allocations.— Any such subaward with respect to any qualified low-income building shall be made in the same manner and shall be subject to the same limitations (including rent, income, and use restrictions on such building) as an allocation of housing credit dollar amount allocated by such State housing credit agency under section 42 of the Internal Revenue Code of 1986, except that such subawards shall not be limited by, or otherwise affect (except as provided in subsection (h)(3)(J) of such section), the State housing credit ceiling applicable to such agency. (3) Compliance and asset management.— The State housing credit agency shall perform asset management functions to ensure compliance with section 42 of the Internal Revenue Code of 1986 and the long-term viability of buildings funded by any subaward under this section. The State housing credit agency may collect reasonable fees from a subaward recipient to cover expenses associated with the performance of its duties under this paragraph. The State housing credit agency may retain an agent or other private contractor to satisfy the requirements of this paragraph. (4) Recapture.— The State housing credit agency shall impose conditions or restrictions, including a requirement providing for recapture, on any subaward under this section so as to assure that the building with respect to which such subaward is made remains a qualified low-income building during the compliance period. Any such recapture shall be payable to the Secretary of the Treasury for deposit in the general fund of the Treasury and may be enforced by means of liens or such other methods as the Secretary of the Treasury determines appropriate. (d) Return of Unused Grant Funds.— Any grant funds not used to make subawards under this section before January 1, 2011, shall be returned to the Secretary of the Treasury on such date. Any subawards returned to the State housing credit agency on or after such date shall be promptly returned to the Secretary of the Treasury. Any amounts returned to the Secretary of the Treasury under this subsection shall be deposited in the general fund of the Treasury. (e) Definitions.— Any term used in this section which is also used in section 42 of the Internal Revenue Code of 1986 shall have the same meaning for purposes of this section as when used in such section 42. Any reference in this section to the Secretary of the Treasury shall be treated as including the Secretary’s delegate. (f) Appropriations.— There is hereby appropriated to the Secretary of the Treasury such sums as may be necessary to carry out this section. SEC. 1603. GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF TAX CREDITS. (a) In General.— Upon application, the Secretary of the Treasury shall, subject to the requirements of this section, provide a grant to each person who places in service specified energy property to reimburse such person for a portion of the expense of such property as provided in subsection (b). No grant shall be made under this section with respect to any property unless such property— (1) is placed in service during 2009 or 2010, or (2) is placed in service after 2010 and before the credit termination date with respect to such property, but only if the construction of such property began during 2009 or 2010. (b) Grant Amount.— (1) In general.— The amount of the grant under subsection (a) with respect to any specified energy property shall be the applicable percentage of the basis of such property. (2) Applicable percentage.— For purposes of paragraph (1), the term “applicable percentage” means— (A) 30 percent in the case of any property described in paragraphs (1) through (4) of subsection (d), and (B) 10 percent in the case of any other property. (3) Dollar limitations.— In the case of property described in paragraph (2), (6), or (7) of subsection (d), the amount of any grant under this section with respect to such property shall not exceed the limitation described in section 48(c)(1)(B), 48(c)(2)(B), or 48(c)(3)(B) of the Internal Revenue Code of 1986, respectively, with respect to such property. (c) Time for Payment of Grant.— The Secretary of the Treasury shall make payment of any grant under subsection (a) during the 60-day period beginning on the later of— (1) the date of the application for such grant, or (2) the date the specified energy property for which the grant is being made is placed in service. (d) Specified Energy Property.— For purposes of this section, the term “specified energy property” means any of the following: (1) Qualified facilities.— Any qualified property (as defined in section 48(a)(5)(D) of the Internal Revenue Code of 1986) which is part of a qualified facility (within the meaning of section 45 of such Code) described in paragraph (1), (2), (3), (4), (6), (7), (9), or (11) of section 45(d) of such Code. (2) Qualified fuel cell property.— Any qualified fuel cell property (as defined in section 48(c)(1) of such Code). (3) Solar property.— Any property described in clause (i) or (ii) of section 48(a)(3)(A) of such Code. (4) Qualified small wind energy property.— Any qualified small wind energy property (as defined in section 48(c)(4) of such Code). (5) Geothermal property.— Any property described in clause (iii) of section 48(a)(3)(A) of such Code. (6) Qualified microturbine property.— Any qualified microturbine property (as defined in section 48(c)(2) of such Code). (7) Combined heat and power system property.— Any combined heat and power system property (as defined in section 48(c)(3) of such Code). (8) Geothermal heat pump property.— Any property described in clause (vii) of section 48(a)(3)(A) of such Code. Such term shall not include any property unless depreciation (or amortization in lieu of depreciation) is allowable with respect to such property. (e) Credit Termination Date.— For purposes of this section, the term “credit termination date” means— (1) in the case of any specified energy property which is part of a facility described in paragraph (1) of section 45(d) of the Internal Revenue Code of 1986, January 1, 2013, (2) in the case of any specified energy property which is part of a facility described in paragraph (2), (3), (4), (6), (7), (9), or (11) of section 45(d) of such Code, January 1, 2014, and (3) in the case of any specified energy property described in section 48 of such Code, January 1, 2017. In the case Applicability. of any property which is described in paragraph (3) and also in another paragraph of this subsection, paragraph (3) shall apply with respect to such property. (f) Application of Certain Rules.— In making grants under this section, the Secretary of the Treasury shall apply rules similar to the rules of section 50 of the Internal Revenue Code of 1986. In applying such rules, if the property is disposed of, or otherwise ceases to be specified energy property, the Secretary of the Treasury shall provide for the recapture of the appropriate percentage of the grant amount in such manner as the Secretary of the Treasury determines appropriate. (g) Exception for Certain Non-Taxpayers.— The Secretary of the Treasury shall not make any grant under this section to— (1) any Federal, State, or local government (or any political subdivision, agency, or instrumentality thereof), (2) any organization described in section 501(c) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code, (3) any entity referred to in paragraph (4) of section 54(j) of such Code, or (4) any partnership or other pass-thru entity any partner (or other holder of an equity or profits interest) of which is described in paragraph (1), (2) or (3). (h) Definitions.— Terms used in this section which are also used in section 45 or 48 of the Internal Revenue Code of 1986 shall have the same meaning for purposes of this section as when used in such section 45 or 48. Any reference in this section to the Secretary of the Treasury shall be treated as including the Secretary’s delegate. (i) Appropriations.— There is hereby appropriated to the Secretary of the Treasury such sums as may be necessary to carry out this section. (j) Termination.— The Deadline. Secretary of the Treasury shall not make any grant to any person under this section unless the application of such person for such grant is received before October 1, 2011. SEC. 1604. INCREASE IN PUBLIC DEBT LIMIT.   Subsection (b) of section 3101 of title 31, United States Code, is amended by striking out the dollar limitation contained in such subsection and inserting “$12,104,000,000,000”. Subtitle H— Prohibition on Collection of Certain Payments Made Under the Continued Dumping and Subsidy Offset Act of 2000 SEC. 1701. PROHIBITION ON COLLECTION OF CERTAIN PAYMENTS MADE UNDER THE CONTINUED DUMPING AND SUBSIDY OFFSET ACT OF 2000. (a) In General.— Notwithstanding any other provision of law, neither the Secretary of Homeland Security nor any other person may— (1) require repayment of, or attempt in any other way to recoup, any payments described in subsection (b); or (2) offset any past, current, or future distributions of antidumping or countervailing duties assessed with respect to imports from countries that are not parties to the North American Free Trade Agreement in an attempt to recoup any payments described in subsection (b). (b) Payments Described.— Payments described in this subsection are payments of antidumping or countervailing duties made pursuant to the Continued Dumping and Subsidy Offset Act of 2000 (section 754 of the Tariff Act of 1930 (19 U.S.C. 1675c; repealed by subtitle F of title VII of the Deficit Reduction Act of 2005 (Public Law 109–171; 120 Stat. 154))) that were— (1) assessed and paid on imports of goods from countries that are parties to the North American Free Trade Agreement; and (2) distributed on or after January 1, 2001, and before January 1, 2006. (c) Payment of Funds Collected or Withheld.— Not Deadline. later than the date that is 60 days after the date of the enactment of this Act, the Secretary of Homeland Security shall— (1) refund any repayments, or any other recoupment, of payments described in subsection (b); and (2) fully distribute any antidumping or countervailing duties that the U.S. Customs and Border Protection is withholding as an offset as described in subsection (a)(2). (d) Limitation.— Nothing in this section shall be construed to prevent the Secretary of Homeland Security, or any other person, from requiring repayment of, or attempting to otherwise recoup, any payments described in subsection (b) as a result of— (1) a finding of false statements or other misconduct by a recipient of such a payment; or (2) the reliquidation of an entry with respect to which such a payment was made. Subtitle I— Trade Adjustment Assistance SEC. 1800. SHORT TITLE.   This subtitle may be cited as the “Trade and Globalization Adjustment Assistance Act of 2009”. PART I— TRADE ADJUSTMENT ASSISTANCE FOR WORKERS Subpart A— Trade Adjustment Assistance for Service Sector Workers SEC. 1801. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE TO SERVICE SECTOR AND PUBLIC AGENCY WORKERS; SHIFTS IN PRODUCTION. (a) Definitions.— Section 247 of the Trade Act of 1974 (19 U.S.C. 2319) is amended— (1) in paragraph (1)— (A) by striking “or appropriate subdivision of a firm”; and (B) by striking “or subdivision”; (2) in paragraph (2), by striking “employment—” and all that follows and inserting “employment, has been totally or partially separated from such employment.”; (3) by inserting after paragraph (2) the following: “(3) Subject to section 222(d)(5), the term ‘firm’ means— “(A) a firm, including an agricultural firm, service sector firm, or public agency; or “(B) an appropriate subdivision thereof.” ; (4) by inserting after paragraph (6) the following: “(7) The term ‘public agency’ means a department or agency of a State or local government or of the Federal Government, or a subdivision thereof.” ; (5) in paragraph (11), by striking “, or in a subdivision of which,”; and (6) by adding at the end the following: “(18) The term ‘service sector firm’ means a firm engaged in the business of supplying services.” . (b) Group Eligibility Requirements.— Section 222 of the Trade Act of 1974 (19 U.S.C. 2272) is amended— (1) in subsection (a)(2)— (A) by amending subparagraph (A)(ii) to read as follows: “(ii) (I) imports of articles or services like or directly competitive with articles produced or services supplied by such firm have increased; “(II) imports of articles like or directly competitive with articles— “(aa) into which one or more component parts produced by such firm are directly incorporated, or “(bb) which are produced directly using services supplied by such firm, have increased; or “(III) imports of articles directly incorporating one or more component parts produced outside the United States that are like or directly competitive with imports of articles incorporating one or more component parts produced by such firm have increased; and” ; and (B) by amending subparagraph (B) to read as follows: “(B) (i) (I) there has been a shift by such workers’ firm to a foreign country in the production of articles or the supply of services like or directly competitive with articles which are produced or services which are supplied by such firm; or “(II) such workers’ firm has acquired from a foreign country articles or services that are like or directly competitive with articles which are produced or services which are supplied by such firm; and “(ii) the shift described in clause (i)(I) or the acquisition of articles or services described in clause (i)(II) contributed importantly to such workers’ separation or threat of separation.” ; (2) by redesignating subsections (b) and (c) as subsections (c) and (d), respectively; and (3) by inserting after subsection (a) the following: “(b) Adversely Affected Workers in Public Agencies.— A group Certification. of workers in a public agency shall be certified by the Secretary as eligible to apply for adjustment assistance under this chapter pursuant to a petition filed under section 221 if the Secretary determines that— “(1) a significant number or proportion of the workers in the public agency have become totally or partially separated, or are threatened to become totally or partially separated; “(2) the public agency has acquired from a foreign country services like or directly competitive with services which are supplied by such agency; and “(3) the acquisition of services described in paragraph (2) contributed importantly to such workers’ separation or threat of separation.” . (c) Basis for Secretary’s Determinations.— Section 222 of the Trade Act of 1974 (19 U.S.C. 2272), as amended, is further amended by adding at the end the following: “(e) Basis for Secretary’s Determinations.— “(1) In general.— The Secretary shall, in determining whether to certify a group of workers under section 223, obtain from the workers’ firm, or a customer of the workers’ firm, information the Secretary determines to be necessary to make the certification, through questionnaires and in such other manner as the Secretary determines appropriate. “(2) Additional information.— The Secretary may seek additional information to determine whether to certify a group of workers under subsection (a), (b), or (c)— “(A) by contacting— “(i) officials or employees of the workers’ firm; “(ii) officials of customers of the workers’ firm; “(iii) officials of certified or recognized unions or other duly authorized representatives of the group of workers; or “(iv) one-stop operators or one-stop partners (as defined in section 101 of the Workforce Investment Act of 1998 (29 U.S.C. 2801)); or “(B) by using other available sources of information. “(3) Verification of information.— “(A) Certification.— The Secretary shall require a firm or customer to certify— “(i) all information obtained under paragraph (1) from the firm or customer (as the case may be) through questionnaires; and “(ii) all other information obtained under paragraph (1) from the firm or customer (as the case may be) on which the Secretary relies in making a determination under section 223, unless the Secretary has a reasonable basis for determining that such information is accurate and complete without being certified. “(B) Use of subpoenas.— The Secretary Deadline. shall require the workers’ firm or a customer of the workers’ firm to provide information requested by the Secretary under paragraph (1) by subpoena pursuant to section 249 if the firm or customer (as the case may be) fails to provide the information within 20 days after the date of the Secretary’s request, unless the firm or customer (as the case may be) demonstrates to the satisfaction of the Secretary that the firm or customer (as the case may be) will provide the information within a reasonable period of time. “(C) Protection of confidential information.— The Secretary may not release information obtained under paragraph (1) that the Secretary considers to be confidential business information unless the firm or customer (as the case may be) submitting the confidential business information had notice, at the time of submission, that the information would be released by the Secretary, or the firm or customer (as the case may be) subsequently consents to the release of the information. Nothing in this subparagraph shall be construed to prohibit the Secretary from providing such confidential business information to a court in camera or to another party under a protective order issued by a court.” . (d) Penalties.— Section 244 of the Trade Act of 1974 (19 U.S.C. 2316) is amended to read as follows: “SEC. 244. PENALTIES.   “Any person who— “(1) makes a false statement of a material fact knowing it to be false, or knowingly fails to disclose a material fact, for the purpose of obtaining or increasing for that person or for any other person any payment authorized to be furnished under this chapter or pursuant to an agreement under section 239, or “(2) makes a false statement of a material fact knowing it to be false, or knowingly fails to disclose a material fact, when providing information to the Secretary during an investigation of a petition under section 221, shall be imprisoned for not more than one year, or fined under title 18, United States Code, or both.” . (e) Conforming Amendments.— (1) Section 221(a) of the Trade Act of 1974 (19 U.S.C. 2271(a)) is amended— (A) in paragraph (1)— (i) in the matter preceding subparagraph (A)— (I) by striking “Secretary” and inserting “Secretary of Labor”; and (II) by striking “or subdivision” and inserting “(as defined in section 247)”; and (ii) in subparagraph (A), by striking “(including workers in an agricultural firm or subdivision of any agricultural firm)”; (B) in paragraph (2)(A), by striking “rapid response assistance” and inserting “rapid response activities”; and (C) in paragraph (3), by inserting “and on the website of the Department of Labor” after “Federal Register”. (2) Section 222 of the Trade Act of 1974 (19 U.S.C. 2272), as amended, is further amended— (A) by striking “(including workers in any agricultural firm or subdivision of an agricultural firm)” each place it appears; (B) in subsection (a)— (i) in paragraph (1), by striking “, or an appropriate subdivision of the firm,”; and (ii) in paragraph (2), by striking “or subdivision” each place it appears; (C) in subsection (c) (as redesignated)— (i) in paragraph (2)— (I) by striking “(or subdivision)” each place it appears; (II) by inserting “or service” after “the article”; and (III) by striking “(c) (3)” and inserting “(d) (3)”; and (ii) in paragraph (3), by striking “(or subdivision)” each place it appears; and (D) in subsection (d) (as redesignated)— (i) by striking “For purposes” and inserting “Definitions.—For purposes”; (ii) in paragraph (2), by striking “, or appropriate subdivision of a firm,” each place it appears; (iii) by amending paragraph (3) to read as follows: “(3) Downstream producer.— “(A) In general.— The term ‘downstream producer’ means a firm that performs additional, value-added production processes or services directly for another firm for articles or services with respect to which a group of workers in such other firm has been certified under subsection (a). “(B) Value-added production processes or services.— For purposes of subparagraph (A), value-added production processes or services include final assembly, finishing, testing, packaging, or maintenance or transportation services.” ; (iv) in paragraph (4)— (I) by striking “(or subdivision)”; and (II) by inserting “, or services, used in the production of articles or in the supply of services, as the case may be,” after “for articles”; and (v) by adding at the end the following: “(5) Reference to firm.— For purposes of subsection (a), the term ‘firm’ does not include a public agency.” . (3) Section 231(a)(2) of the Trade Act of 1974 (19 U.S.C. 2291(a)(2)) is amended— (A) in the matter preceding subparagraph (A), by striking “or subdivision of a firm”; and (B) in subparagraph (C), by striking “or subdivision”. SEC. 1802. SEPARATE BASIS FOR CERTIFICATION.   Section 222 of the Trade Act of 1974 (19 U.S.C. 2272), as amended, is further amended by adding at the end the following: “(f) Firms Identified by the International Trade Commission.— Notwithstanding any other provision of this chapter, a group of workers covered by a petition filed under section 221 shall be certified under subsection (a) as eligible to apply for adjustment assistance under this chapter if— “(1) the workers’ firm is publicly identified by name by the International Trade Commission as a member of a domestic industry in an investigation resulting in— “(A) an affirmative determination of serious injury or threat thereof under section 202(b)(1); “(B) an affirmative determination of market disruption or threat thereof under section 421(b)(1); or “(C) an affirmative final determination of material injury or threat thereof under section 705(b)(1)(A) or 735(b)(1)(A) of the Tariff Act of 1930 (19 U.S.C. 1671d(b)(1)(A) and 1673d(b)(1)(A)); “(2) the petition is filed during the one-year period beginning on the date on which— “(A) a summary of the report submitted to the President by the International Trade Commission under section 202(f)(1) with respect to the affirmative determination described in paragraph (1)(A) is published in the Federal Register under section 202(f)(3); or “(B) notice of an affirmative determination described in subparagraph (B) or (C) of paragraph (1) is published in the Federal Register; and “(3) the workers have become totally or partially separated from the workers’ firm within— “(A) the one-year period described in paragraph (2); or “(B) notwithstanding section 223(b), the one-year period preceding the one-year period described in paragraph (2).” . SEC. 1803. DETERMINATIONS BY SECRETARY OF LABOR.   Section 223 of the Trade Act of 1974 (19 U.S.C. 2273) is amended— (1) in subsection (b), by striking “or appropriate subdivision of the firm before his application” and all that follows and inserting “before the worker’s application under section 231 occurred more than one year before the date of the petition on which such certification was granted.”; (2) in subsection (c), by striking “together with his reasons” and inserting “and on the website of the Department of Labor, together with the Secretary’s reasons”; (3) in subsection (d)— (A) by striking “or subdivision of the firm” and all that follows through “he shall” and inserting “, that total or partial separations from such firm are no longer attributable to the conditions specified in section 222, the Secretary shall”; and (B) by striking “together with his reasons” and inserting “and on the website of the Department of Labor, together with the Secretary’s reasons”; and (4) by adding at the end the following: “(e) Standards for Investigations and Determinations.— “(1) In general.— The Secretary Criteria. shall establish standards, including data requirements, for investigations of petitions filed under section 221 and criteria for making determinations under subsection (a). “(2) Consultations.— Not less Deadline. than 90 days before issuing a final rule with respect to the standards required under paragraph (1), the Secretary shall consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives with respect to such rule.” . SEC. 1804. MONITORING AND REPORTING RELATING TO SERVICE SECTOR. (a) In General.— Section 282 of the Trade Act of 1974 (19 U.S.C. 2393) is amended— (1) in the heading, by striking “system” and inserting “and data collection”; (2) in the first sentence— (A) by striking “The Secretary” and inserting “(a) Monitoring Programs.—The Secretary”; (B) by inserting “and services” after “imports of articles”; (C) by inserting “and domestic supply of services” after “domestic production”; (D) by inserting “or supplying services” after “producing articles”; and (E) by inserting “, or supply of services,” after “changes in production”; and (3) by adding at the end the following: “(b) Collection of Data and Reports on Service Sector.— “(1) Secretary of labor.— Not later System. than 90 days after the date of the enactment of this subsection, the Secretary of Labor shall implement a system to collect data on adversely affected workers employed in the service sector that includes the number of workers by State and industry, and by the cause of the dislocation of each worker, as identified in the certification. “(2) Secretary of commerce.— Not later than 1 year after such date of enactment, the Secretary of Commerce shall, in consultation with the Secretary of Labor, conduct a study and submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report on ways to improve the timeliness and coverage of data on trade in services, including methods to identify increased imports due to the relocation of United States firms to foreign countries, and increased imports due to United States firms acquiring services from firms in foreign countries.” . (b) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by striking the item relating to section 282 and inserting the following: “Sec. 282.  Trade monitoring and data collection.”. (c) Effective Date.— The amendments made by this section shall take effect on the date of the enactment of this Act. Subpart B— Industry Notifications Following Certain Affirmative Determinations SEC. 1811. NOTIFICATIONS FOLLOWING CERTAIN AFFIRMATIVE DETERMINATIONS. (a) In General.— Section 224 of the Trade Act of 1974 (19 U.S.C. 2274) is amended— (1) by amending the heading to read as follows: “SEC. 224. STUDY AND NOTIFICATIONS REGARDING CERTAIN AFFIRMATIVE DETERMINATIONS; INDUSTRY NOTIFICATION OF ASSISTANCE.” ; (2) in subsection (a), by striking “Whenever” and inserting “Study of Domestic Industry.—Whenever”; (3) in subsection (b)— (A) by striking “The report” and inserting “Report by the Secretary.—The report”; and (B) by inserting “and on the website of the Department of Labor” after “Federal Register”; and (4) by adding at the end the following: “(c) Notifications Following Affirmative Global Safeguard Determinations.— Upon making an affirmative determination under section 202(b)(1), the Commission shall promptly notify the Secretary of Labor and the Secretary of Commerce and, in the case of a determination with respect to an agricultural commodity, the Secretary of Agriculture, of the determination. “(d) Notifications Following Affirmative Bilateral or Plurilateral Safeguard Determinations.— “(1) Notifications of determinations of market disruption.— Upon making an affirmative determination under section 421(b)(1), the Commission shall promptly notify the Secretary of Labor and the Secretary of Commerce and, in the case of a determination with respect to an agricultural commodity, the Secretary of Agriculture, of the determination. “(2) Notifications regarding trade agreement safeguards.— Upon making an affirmative determination in a proceeding initiated under an applicable safeguard provision (other than a provision described in paragraph (3)) that is enacted to implement a trade agreement to which the United States is a party, the Commission shall promptly notify the Secretary of Labor and the Secretary of Commerce and, in the case of a determination with respect to an agricultural commodity, the Secretary of Agriculture, of the determination. “(3) Notifications regarding textile and apparel safeguards.— Upon making an affirmative determination in a proceeding initiated under any safeguard provision relating to textile and apparel articles that is enacted to implement a trade agreement to which the United States is a party, the President shall promptly notify the Secretary of Labor and the Secretary of Commerce of the determination. “(e) Notifications Following Certain Affirmative Determinations Under Title Vii of the Tariff Act of 1930.— Upon making an affirmative determination under section 705(b)(1)(A) or 735(b)(1)(A) of the Tariff Act of 1930 (19 U.S.C. 1671d(b)(1)(A) and 1673d(b)(1)(A)), the Commission shall promptly notify the Secretary of Labor and the Secretary of Commerce and, in the case of a determination with respect to an agricultural commodity, the Secretary of Agriculture, of the determination. “(f) Industry Notification of Assistance.— Upon receiving a notification of a determination under subsection (c), (d), or (e) with respect to a domestic industry— “(1) the Secretary of Labor shall— “(A) notify the representatives of the domestic industry affected by the determination, firms publicly identified by name during the course of the proceeding relating to the determination, and any certified or recognized union or, to the extent practicable, other duly authorized representative of workers employed by such representatives of the domestic industry, of— “(i) the allowances, training, employment services, and other benefits available under this chapter; “(ii) the manner in which to file a petition and apply for such benefits; and “(iii) the availability of assistance in filing such petitions; “(B) notify the Governor of each State in which one or more firms in the industry described in subparagraph (A) are located of the Commission’s determination and the identity of the firms; and “(C) upon request, provide any assistance that is necessary to file a petition under section 221; “(2) the Secretary of Commerce shall— “(A) notify the representatives of the domestic industry affected by the determination and any firms publicly identified by name during the course of the proceeding relating to the determination of— “(i) the benefits available under chapter 3; “(ii) the manner in which to file a petition and apply for such benefits; and “(iii) the availability of assistance in filing such petitions; and “(B) upon request, provide any assistance that is necessary to file a petition under section 251; and “(3) in the case of an affirmative determination based upon imports of an agricultural commodity, the Secretary of Agriculture shall— “(A) notify representatives of the domestic industry affected by the determination and any agricultural commodity producers publicly identified by name during the course of the proceeding relating to the determination of— “(i) the benefits available under chapter 6; “(ii) the manner in which to file a petition and apply for such benefits; and “(iii) the availability of assistance in filing such petitions; and “(B) upon request, provide any assistance that is necessary to file a petition under section 292. “(g) Representatives of the Domestic Industry.— For purposes of subsection (f), the term ‘representatives of the domestic industry’ means the persons that petitioned for relief in connection with— “(1) a proceeding under section 202 or 421 of this Act; “(2) a proceeding under section 702(b) or 732(b) of the Tariff Act of 1930 (19 U.S.C. 1671d(b) and 1673d(b)); or “(3) any safeguard investigation described in subsection (d)(2) or (d)(3).” . (b) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by striking the item relating to section 224 and inserting the following: “Sec. 224.  Study and notifications regarding certain affirmative determinations; industry notification of assistance.”. SEC. 1812. NOTIFICATION TO SECRETARY OF COMMERCE.   Section 225 of the Trade Act of 1974 (19 U.S.C. 2275) is amended by adding at the end the following: “(c) Upon issuing a certification under section 223, the Secretary shall notify the Secretary of Commerce of the identity of each firm covered by the certification.” . Subpart C— Program Benefits SEC. 1821. QUALIFYING REQUIREMENTS FOR WORKERS. (a) In General.— Section 231(a)(5)(A)(ii) of the Trade Act of 1974 (19 U.S.C. 2291 (a)(5)(A)(ii)) is amended— (1) by striking subclauses (I) and (II) and inserting the following: “(I) in the case of a worker whose most recent total separation from adversely affected employment that meets the requirements of paragraphs (1) and (2) occurs after the date on which the Secretary issues a certification covering the worker, the last day of the 26th week after such total separation, “(II) in the case of a worker whose most recent total separation from adversely affected employment that meets the requirements of paragraphs (1) and (2) occurs before the date on which the Secretary issues a certification covering the worker, the last day of the 26th week after the date of such certification,” ; (2) in subclause (III)— (A) by striking “later of the dates specified in subclause (I) or (II)” and inserting “date specified in subclause (I) or (II), as the case may be”; and (B) by striking “or” at the end; (3) by redesignating subclause (IV) as subclause (V); and (4) by inserting after subclause (III) the following: “(IV) in the case of a worker who fails to enroll by the date required by subclause (I), (II), or (III), as the case may be, due to the failure to provide the worker with timely information regarding the date specified in such subclause, the last day of a period determined by the Secretary, or” . (b) Waivers of Training Requirements.— Section 231(c) of the Trade Act of 1974 (19 U.S.C. 2291(c)) is amended— (1) in paragraph (1)(B)— (A) by striking “The worker possesses” and inserting the following: “(i) In general.— The worker possesses” ; and (B) by adding at the end the following: “(ii) Marketable skills defined.— For purposes of clause (i), the term ‘marketable skills’ may include the possession of a postgraduate degree from an institution of higher education (as defined in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002)) or an equivalent institution, or the possession of an equivalent postgraduate certification in a specialized field.” ; (2) in paragraph (2)(A), by striking “A waiver” and inserting “Except as provided in paragraph (3)(B), a waiver”; and (3) in paragraph (3)— (A) in subparagraph (A), by striking “Pursuant to an agreement under section 239, the Secretary may authorize a” and inserting “An agreement under section 239 shall authorize a”; (B) by redesignating subparagraph (B) as subparagraph (C); and (C) by inserting after subparagraph (A) the following: “(B) Review of waivers.— An agreement Deadlines. under section 239 shall require a cooperating State to review each waiver issued by the State under subparagraph (A), (B), (D), (E), or (F) of paragraph (1)— “(i) 3 months after the date on which the State issues the waiver; and “(ii) on a monthly basis thereafter.” . (c) Conforming Amendments.— (1) Section 231 of the Trade Act of 1974 (19 U.S.C. 2291), as amended, is further amended— (A) in subsection (a), in the matter preceding paragraph (1), by striking “more than 60 days” and all that follows through “section 221” and inserting “on or after the date of such certification”; and (B) in subsection (b)— (i) by striking paragraph (2); and (ii) in paragraph (1)— (I) by striking “(1)”; (II) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively; (III) by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively; and (IV) by redesignating subclauses (I) and (II) as clauses (i) and (ii), respectively. (2) Section 233 of the Trade Act of 1974 (19 U.S.C. 2293) is amended— (A) by striking subsection (b); and (B) by redesignating subsections (c) through (g) as subsections (b) through (f), respectively. SEC. 1822. WEEKLY AMOUNTS.   Section 232 of the Trade Act of 1974 (19 U.S.C. 2292) is amended— (1) in subsection (a)— (A) by striking “subsections (b) and (c)” and inserting “subsections (b), (c), and (d)”; (B) by striking “total unemployment” the first place it appears and inserting “unemployment”; and (C) in paragraph (2), by inserting before the period the following: “, except that in the case of an adversely affected worker who is participating in training under this chapter, such income shall not include earnings from work for such week that are equal to or less than the most recent weekly benefit amount of the unemployment insurance payable to the worker for a week of total unemployment preceding the worker’s first exhaustion of unemployment insurance (as determined for purposes of section 231(a)(3)(B))”; and (2) by adding at the end the following: “(d) Election of Trade Readjustment Allowance or Unemployment Insurance.— Notwithstanding section 231(a)(3)(B), an adversely affected worker may elect to receive a trade readjustment allowance instead of unemployment insurance during any week with respect to which the worker— “(1) is entitled to receive unemployment insurance as a result of the establishment by the worker of a new benefit year under State law, based in whole or in part upon part-time or short-term employment in which the worker engaged after the worker’s most recent total separation from adversely affected employment; and “(2) is otherwise entitled to a trade readjustment allowance.” . SEC. 1823. LIMITATIONS ON TRADE READJUSTMENT ALLOWANCES; ALLOWANCES FOR EXTENDED TRAINING AND BREAKS IN TRAINING.   Section 233(a) of the Trade Act of 1974 (19 U.S.C. 2293(a)) is amended— (1) in paragraph (2), by inserting “under paragraph (1)” after “trade readjustment allowance”; and (2) in paragraph (3)— (A) in the matter preceding subparagraph (A)— (i) by striking “training approved for him” and inserting “a training program approved for the worker”; (ii) by striking “52 additional weeks” and inserting “78 additional weeks”; and (iii) by striking “52-week” and inserting “91-week”; and (B) in the matter following subparagraph (B), by striking “52-week” and inserting “91-week”. SEC. 1824. SPECIAL RULES FOR CALCULATION OF ELIGIBILITY PERIOD.   Section 233 of the Trade Act of 1974 (19 U.S.C. 2293), as amended, is further amended by adding at the end the following: “(g) Special Rule for Calculating Separation.— Notwithstanding any other provision of this chapter, any period during which a judicial or administrative appeal is pending with respect to the denial by the Secretary of a petition under section 223 shall not be counted for purposes of calculating the period of separation under subsection (a)(2). “(h) Special Rule for Justifiable Cause.— If the Secretary determines that there is justifiable cause, the Secretary may extend the period during which trade readjustment allowances are payable to an adversely affected worker under paragraphs (2) and (3) of subsection (a) (but not the maximum amounts of such allowances that are payable under this section). “(i) Special Rule With Respect to Military Service.— “(1) In general.— Notwithstanding any Waiver authority. other provision of this chapter, the Secretary may waive any requirement of this chapter that the Secretary determines is necessary to ensure that an adversely affected worker who is a member of a reserve component of the Armed Forces and serves a period of duty described in paragraph (2) is eligible to receive a trade readjustment allowance, training, and other benefits under this chapter in the same manner and to the same extent as if the worker had not served the period of duty. “(2) Period of duty described.— An adversely affected worker serves a period of duty described in this paragraph if, before completing training under section 236, the worker— “(A) serves on active duty for a period of more than 30 days under a call or order to active duty of more than 30 days; or “(B) in the case of a member of the Army National Guard of the United States or Air National Guard of the United States, performs full-time National Guard duty under section 502(f) of title 32, United States Code, for 30 consecutive days or more when authorized by the President or the Secretary of Defense for the purpose of responding to a national emergency declared by the President and supported by Federal funds.” . SEC. 1825. APPLICATION OF STATE LAWS AND REGULATIONS ON GOOD CAUSE FOR WAIVER OF TIME LIMITS OR LATE FILING OF CLAIMS.   Section 234 of the Trade Act of 1974 (19 U.S.C. 2294) is amended— (1) by striking “Except where inconsistent” and inserting “(a) In General.—Except where inconsistent”; and (2) by adding at the end the following: “(b) Special Rule With Respect to State Laws and Regulations on Good Cause for Waiver of Time Limits or Late Filing of Claims.— Any law, Applicability. regulation, policy, or practice of a cooperating State that allows for a waiver for good cause of any time limitation relating to the administration of the State unemployment insurance law shall, in the administration of the program under this chapter by the State, apply to any time limitation with respect to an application for a trade readjustment allowance or enrollment in training under this chapter.” . SEC. 1826. EMPLOYMENT AND CASE MANAGEMENT SERVICES. (a) In General.— Section 235 of the Trade Act of 1974 (19 U.S.C. 2295) is amended to read as follows: “SEC. 235. EMPLOYMENT AND CASE MANAGEMENT SERVICES.   “The Secretary shall make available, directly or through agreements with States under section 239, to adversely affected workers and adversely affected incumbent workers covered by a certification under subchapter A of this chapter the following employment and case management services: “(1) Comprehensive and specialized assessment of skill levels and service needs, including through— “(A) diagnostic testing and use of other assessment tools; and “(B) in-depth interviewing and evaluation to identify employment barriers and appropriate employment goals. “(2) Development of an individual employment plan to identify employment goals and objectives, and appropriate training to achieve those goals and objectives. “(3) Information on training available in local and regional areas, information on individual counseling to determine which training is suitable training, and information on how to apply for such training. “(4) Information on how to apply for financial aid, including referring workers to educational opportunity centers described in section 402F of the Higher Education Act of 1965 (20 U.S.C. 1070a–16), where applicable, and notifying workers that the workers may request financial aid administrators at institutions of higher education (as defined in section 102 of such Act (20 U.S.C. 1002)) to use the administrators’ discretion under section 479A of such Act (20 U.S.C. 1087tt) to use current year income data, rather than preceding year income data, for determining the amount of need of the workers for Federal financial assistance under title IV of such Act (20 U.S.C. 1070 et seq.). “(5) Short-term prevocational services, including development of learning skills, communications skills, interviewing skills, punctuality, personal maintenance skills, and professional conduct to prepare individuals for employment or training. “(6) Individual career counseling, including job search and placement counseling, during the period in which the individual is receiving a trade adjustment allowance or training under this chapter, and after receiving such training for purposes of job placement. “(7) Provision of employment statistics information, including the provision of accurate information relating to local, regional, and national labor market areas, including— “(A) job vacancy listings in such labor market areas; “(B) information on jobs skills necessary to obtain jobs identified in job vacancy listings described in subparagraph (A); “(C) information relating to local occupations that are in demand and earnings potential of such occupations; and “(D) skills requirements for local occupations described in subparagraph (C). “(8) Information relating to the availability of supportive services, including services relating to child care, transportation, dependent care, housing assistance, and need-related payments that are necessary to enable an individual to participate in training.” . (b) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by striking the item relating to section 235 and inserting the following: “235. Employment and case management services.”. SEC. 1827. ADMINISTRATIVE EXPENSES AND EMPLOYMENT AND CASE MANAGEMENT SERVICES. (a) In General.— Part II of subchapter B of chapter 2 of title II of the Trade Act of 1974 (19 U.S.C. 2295 et seq.) is amended by inserting after section 235 the following: “SEC. 235A. FUNDING FOR ADMINISTRATIVE EXPENSES AND EMPLOYMENT AND CASE MANAGEMENT SERVICES. “(a) Funding for Administrative Expenses and Employment and Case Management Services.— “(1) In general.— In addition to any funds made available to a State to carry out section 236 for a fiscal year, the State shall receive for the fiscal year a payment in an amount that is equal to 15 percent of the amount of such funds. “(2) Use of funds.— A State that receives a payment under paragraph (1) shall— “(A) use not more than ⅔ of such payment for the administration of the trade adjustment assistance for workers program under this chapter, including for— “(i) processing waivers of training requirements under section 231; “(ii) collecting, validating, and reporting data required under this chapter; and “(iii) providing reemployment trade adjustment assistance under section 246; and “(B) use not less than ⅓ of such payment for employment and case management services under section 235. “(b) Additional Funding for Employment and Case Management Services.— “(1) In general.— In addition to any funds made available to a State to carry out section 236 and the payment under subsection (a)(1) for a fiscal year, the Secretary shall provide to the State for the fiscal year a payment in the amount of $350,000. “(2) Use of funds.— A State that receives a payment under paragraph (1) shall use such payment for the purpose of providing employment and case management services under section 235. “(3) Voluntary return of funds.— A State that receives a payment under paragraph (1) may decline or otherwise return such payment to the Secretary.” . (b) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by inserting after the item relating to section 235 the following: “Sec. 235A.  Funding for administrative expenses and employment and case management services.”. (c) Effective Date.— The amendments made by this section shall take effect on the date of the enactment of this Act. SEC. 1828. TRAINING FUNDING. (a) In General.— Section 236(a)(2) of the Trade Act of 1974 (19 U.S.C. 2296(a)(2)) is amended to read as follows: “(2) (A) The total amount of payments that may be made under paragraph (1) shall not exceed— “(i) for each of the fiscal years 2009 and 2010, $575,000,000; and “(ii) for the period beginning October 1, 2010, and ending December 31, 2010, $143,750,000. “(B) (i) The Secretary shall, as soon as practicable after the beginning of each fiscal year, make an initial distribution of the funds made available to carry out this section, in accordance with the requirements of subparagraph (C). “(ii) The Secretary shall ensure that not less than 90 percent of the funds made available to carry out this section for a fiscal year are distributed to the States by not later than July 15 of that fiscal year. “(C) (i) In making the initial distribution of funds pursuant to subparagraph (B)(i) for a fiscal year, the Secretary shall hold in reserve 35 percent of the funds made available to carry out this section for that fiscal year for additional distributions during the remainder of the fiscal year. “(ii) Subject to clause (iii), in determining how to apportion the initial distribution of funds pursuant to subparagraph (B)(i) in a fiscal year, the Secretary shall take into account, with respect to each State— “(I) the trend in the number of workers covered by certifications of eligibility under this chapter during the most recent 4 consecutive calendar quarters for which data are available; “(II) the trend in the number of workers participating in training under this section during the most recent 4 consecutive calendar quarters for which data are available; “(III) the number of workers estimated to be participating in training under this section during the fiscal year; “(IV) the amount of funding estimated to be necessary to provide training approved under this section to such workers during the fiscal year; and “(V) such other factors as the Secretary considers appropriate relating to the provision of training under this section. “(iii) In no case may the amount of the initial distribution to a State pursuant to subparagraph (B)(i) in a fiscal year be less than 25 percent of the initial distribution to the State in the preceding fiscal year. “(D) The Secretary shall establish procedures for the distribution of the funds that remain available for the fiscal year after the initial distribution required under subparagraph (B)(i). Such procedures may include the distribution of funds pursuant to requests submitted by States in need of such funds. “(E) If, during a fiscal year, the Secretary estimates that the amount of funds necessary to pay the costs of training approved under this section will exceed the dollar amount limitation specified in subparagraph (A), the Secretary shall decide how the amount of funds made available to carry out this section that have not been distributed at the time of the estimate will be apportioned among the States for the remainder of the fiscal year.” . (b) Determinations Regarding Training.— Section 236(a)(9) of the Trade Act of 1974 (19 U.S.C. 2296(a)(9)) is amended— (1) by striking “The Secretary” and inserting “(A) Subject to subparagraph (B), the Secretary”; and (2) by adding at the end the following: “(B) (i) In determining under paragraph (1)(E) whether a worker is qualified to undertake and complete training, the Secretary may approve training for a period longer than the worker’s period of eligibility for trade readjustment allowances under part I if the worker demonstrates a financial ability to complete the training after the expiration of the worker’s period of eligibility for such trade readjustment allowances. “(ii) In determining the reasonable cost of training under paragraph (1)(F) with respect to a worker, the Secretary may consider whether other public or private funds are reasonably available to the worker, except that the Secretary may not require a worker to obtain such funds as a condition of approval of training under paragraph (1).” . (c) Regulations.— Section 236 of the Trade Act of 1974 (19 U.S.C. 2296) is amended by adding at the end the following: “(g) Regulations With Respect to Apportionment of Training Funds to States.— “(1) In general.— Not later than 1 year after the date of the enactment of this subsection, the Secretary shall issue such regulations as may be necessary to carry out the provisions of subsection (a)(2). “(2) Consultations.— The Secretary shall consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives not less than 90 days before issuing any regulation pursuant to paragraph (1).” . (d) Effective Date.— This section and the amendments made by this section shall take effect upon the expiration of the 90-day period beginning on the date of the enactment of this Act, except that— (1) subparagraph (A) of section 236(a)(2) of the Trade Act of 1974, as amended by subsection (a) of this section, shall take effect on the date of the enactment of this Act; and (2) subparagraphs (B), (C), and (D) of such section 236(a)(2) shall take effect on October 1, 2009. SEC. 1829. PREREQUISITE EDUCATION; APPROVED TRAINING PROGRAMS. (a) In General.— Section 236(a)(5) of the Trade Act of 1974 (19 U.S.C. 2296(a)(5)) is amended— (1) in subparagraph (A)— (A) by striking “and” at the end of clause (i); (B) by adding “and” at the end of clause (ii); and (C) by inserting after clause (ii) the following: “(iii) apprenticeship programs registered under the Act of August 16, 1937 (commonly known as the ‘National Apprenticeship Act’; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.),” ; (2) by redesignating subparagraphs (E) and (F) as subparagraphs (F) and (G), respectively; (3) by inserting after subparagraph (D) the following: “(E) any program of prerequisite education or coursework required to enroll in training that may be approved under this section,” ; (4) in subparagraph (F)(ii), as redesignated by paragraph (2), by striking “and” at the end; (5) in subparagraph (G), as redesignated by paragraph (2), by striking the period at the end and inserting “, and”; and (6) by adding at the end the following: “(H) any training program or coursework at an accredited institution of higher education (described in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002)), including a training program or coursework for the purpose of— “(i) obtaining a degree or certification; or “(ii) completing a degree or certification that the worker had previously begun at an accredited institution of higher education. The Secretary may not limit approval of a training program under paragraph (1) to a program provided pursuant to title I of the Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.).” . (b) Conforming Amendments.— Section 233 of the Trade Act of 1974 (19 U.S.C. 2293) is amended— (1) in subsection (a)(2), by inserting “prerequisite education or” after “requires a program of”; and (2) in subsection (f) (as redesignated by section 1821(c) of this subtitle), by inserting “prerequisite education or” after “includes a program of”. (c) Technical Corrections.— Section 236 of the Trade Act of 1974 (19 U.S.C. 2296) is amended— (1) in subsection (a)— (A) in paragraph (1), in the flush text, by striking “his behalf” and inserting “the worker’s behalf”; and (B) in paragraph (3), by striking “this paragraph (1)” and inserting “paragraph (1)”; and (2) in subsection (b)(2), by striking “, and” and inserting a period. SEC. 1830. PRE-LAYOFF AND PART-TIME TRAINING. (a) Pre-Layoff Training.— (1) In general.— Section 236(a) of the Trade Act of 1974 (19 U.S.C. 2296(a)) is amended— (A) in paragraph (1), by inserting after “determines” the following: “, with respect to an adversely affected worker or an adversely affected incumbent worker,”; (B) in paragraph (4)— (i) in subparagraphs (A) and (B), by inserting “or an adversely affected incumbent worker” after “an adversely affected worker” each place it appears; and (ii) in subparagraph (C), by inserting “or adversely affected incumbent worker” after “adversely affected worker” each place it appears; (C) in paragraph (5), in the matter preceding subparagraph (A), by striking “The training programs” and inserting “Except as provided in paragraph (10), the training programs”; (D) in paragraph (6)(B), by inserting “or adversely affected incumbent worker” after “adversely affected worker”; (E) in paragraph (7)(B), by inserting “or adversely affected incumbent worker” after “adversely affected worker”; and (F) by inserting after paragraph (9) the following: “(10) In the case of an adversely affected incumbent worker, the Secretary may not approve— “(A) on-the-job training under paragraph (5)(A)(i); or “(B) customized training under paragraph (5)(A)(ii), unless such training is for a position other than the worker’s adversely affected employment. “(11) If the Secretary determines that an adversely affected incumbent worker for whom the Secretary approved training under this section is no longer threatened with a total or partial separation, the Secretary shall terminate the approval of such training.” . (2) Definitions.— Section 247 of the Trade Act of 1974 (19 U.S.C. 2319), as amended, is further amended by adding at the end the following: “(19) The term ‘adversely affected incumbent worker’ means a worker who— “(A) is a member of a group of workers who have been certified as eligible to apply for adjustment assistance under subchapter A; “(B) has not been totally or partially separated from adversely affected employment; and “(C) the Secretary determines, on an individual basis, is threatened with total or partial separation.” . (b) Part-Time Training.— Section 236 of the Trade Act of 1974 (19 U.S.C. 2296), as amended, is further amended by adding at the end the following: “(h) Part-Time Training.— “(1) In general.— The Secretary may approve full-time or part-time training for a worker under subsection (a). “(2) Limitation.— Notwithstanding paragraph (1), a worker participating in part-time training approved under subsection (a) may not receive a trade readjustment allowance under section 231.” . SEC. 1831. ON-THE-JOB TRAINING. (a) In General.— Section 236(c) of the Trade Act of 1974 (19 U.S.C. 2296(c)) is amended— (1) by redesignating paragraphs (1) through (10) as subparagraphs (A) through (J) and moving such subparagraphs 2 ems to the right; (2) by striking “(c) The Secretary shall” and all that follows through “such costs,” and inserting the following: “(c) On-the-Job Training Requirements.— “(1) In general.— The Secretary may approve on-the-job training for any adversely affected worker if— “(A) the worker meets the requirements for training to be approved under subsection (a)(1); “(B) the Secretary determines that on-the-job training— “(i) can reasonably be expected to lead to suitable employment with the employer offering the on-the-job training; “(ii) is compatible with the skills of the worker; “(iii) includes a curriculum through which the worker will gain the knowledge or skills to become proficient in the job for which the worker is being trained; and “(iv) can be measured by benchmarks that indicate that the worker is gaining such knowledge or skills; and “(C) the State determines that the on-the-job training program meets the requirements of clauses (iii) and (iv) of subparagraph (B). “(2) Monthly payments.— The Secretary shall pay the costs of on-the-job training approved under paragraph (1) in monthly installments. “(3) Contracts for on-the-job training.— “(A) In general.— The Secretary shall ensure, in entering into a contract with an employer to provide on-the-job training to a worker under this subsection, that the skill requirements of the job for which the worker is being trained, the academic and occupational skill level of the worker, and the work experience of the worker are taken into consideration. “(B) Term of contract.— Training under any such contract shall be limited to the period of time required for the worker receiving on-the-job training to become proficient in the job for which the worker is being trained, but may not exceed 104 weeks in any case. “(4) Exclusion of certain employers.— The Secretary shall not enter into a contract for on-the-job training with an employer that exhibits a pattern of failing to provide workers receiving on-the-job training from the employer with— “(A) continued, long-term employment as regular employees; and “(B) wages, benefits, and working conditions that are equivalent to the wages, benefits, and working conditions provided to regular employees who have worked a similar period of time and are doing the same type of work as workers receiving on-the-job training from the employer. “(5) Labor standards.— The Secretary may pay the costs of on-the-job training,” ; and (3) in paragraph (5), as redesignated— (A) in subparagraph (I), as redesignated by paragraph (1) of this section, by striking “paragraphs (1), (2), (3), (4), (5), and (6)” and inserting “subparagraphs (A), (B), (C), (D), (E), and (F)”; and (B) in subparagraph (J), as redesignated by paragraph (1) of this section, by striking “paragraph (8)” and inserting “subparagraph (H)”. (b) Repeal of Preference for Training on the Job.— Section 236(a)(1) of the Trade Act of 1974 (19 U.S.C. 2296(a)(1)) is amended by striking the last sentence. SEC. 1832. ELIGIBILITY FOR UNEMPLOYMENT INSURANCE AND PROGRAM BENEFITS WHILE IN TRAINING.   Section 236(d) of the Trade Act of 1974 (19 U.S.C. 2296(d)) is amended to read as follows: “(d) Eligibility.— An adversely affected worker may not be determined to be ineligible or disqualified for unemployment insurance or program benefits under this subchapter— “(1) because the worker— “(A) is enrolled in training approved under subsection (a); “(B) left work— “(i) that was not suitable employment in order to enroll in such training; or “(ii) that the worker engaged in on a temporary basis during a break in such training or a delay in the commencement of such training; or “(C) left on-the-job training not later than 30 days after commencing such training because the training did not meet the requirements of subsection (c)(1)(B); or “(2) because of the application to any such week in training of the provisions of State law or Federal unemployment insurance law relating to availability for work, active search for work, or refusal to accept work.” . SEC. 1833. JOB SEARCH AND RELOCATION ALLOWANCES. (a) Job Search Allowances.— Section 237 of the Trade Act of 1974 (19 U.S.C. 2297) is amended— (1) in subsection (a)(2)(C)(ii), by striking “, unless the worker received a waiver under section 231(c)”; and (2) in subsection (b)— (A) in paragraph (1), by striking “90 percent of the cost of” and inserting “all”; and (B) in paragraph (2), by striking “$1,250” and inserting “$1,500”. (b) Relocation Allowances.— Section 238 of the Trade Act of 1974 (19 U.S.C. 2298) is amended— (1) in subsection (a)(2)(E)(ii), by striking “, unless the worker received a waiver under section 231(c)”; and (2) in subsection (b)— (A) in paragraph (1), by striking “90 percent of the” and inserting “all”; and (B) in paragraph (2), by striking “$1,250” and inserting “$1,500”. Subpart D— Reemployment Trade Adjustment Assistance Program SEC. 1841. REEMPLOYMENT TRADE ADJUSTMENT ASSISTANCE PROGRAM. (a) In General.— Section 246 of the Trade Act of 1974 (19 U.S.C. 2318) is amended— (1) by amending the heading to read as follows: “SEC. 246. REEMPLOYMENT TRADE ADJUSTMENT ASSISTANCE PROGRAM.” ; (2) in subsection (a)— (A) in paragraph (1)— (i) by striking “Not later than” and all that follows through “2002, the Secretary” and inserting “The Secretary”; and (ii) by striking “an alternative trade adjustment assistance program for older workers” and inserting “a reemployment trade adjustment assistance program”; (B) in paragraph (2)— (i) in subparagraph (A)— (I) in the matter preceding clause (i), by striking “for a period not to exceed 2 years” and inserting “for the eligibility period under subparagraph (A) or (B) of paragraph (4) (as the case may be)”; and (II) by striking clauses (i) and (ii) and inserting the following: “(i) the wages received by the worker at the time of separation; and “(ii) the wages received by the worker from reemployment.” ; (ii) in subparagraph (B)— (I) by striking “for a period not to exceed 2 years” and inserting “for the eligibility period under subparagraph (A) or (B) of paragraph (4) (as the case may be)”; and (II) by striking “, as added by section 201 of the Trade Act of 2002”; and (iii) by adding at the end the following: “(C) Training and other services.— A worker described in paragraph (3)(B) participating in the program established under paragraph (1) is eligible to receive training approved under section 236 and employment and case management services under section 235.” ; and (C) by striking paragraphs (3) through (5) and inserting the following: “(3) Eligibility.— “(A) In general.— A group of workers certified under subchapter A as eligible for adjustment assistance under subchapter A is eligible for benefits described in paragraph (2) under the program established under paragraph (1). “(B) Individual eligibility.— A worker in a group of workers described in subparagraph (A) may elect to receive benefits described in paragraph (2) under the program established under paragraph (1) if the worker— “(i) is at least 50 years of age; “(ii) earns not more than $55,000 each year in wages from reemployment; “(iii) (I) is employed on a full-time basis as defined by the law of the State in which the worker is employed and is not enrolled in a training program approved under section 236; or “(II) is employed at least 20 hours per week and is enrolled in a training program approved under section 236; and “(iv) is not employed at the firm from which the worker was separated. “(4) Eligibility period for payments.— “(A) Worker who has not received trade readjustment allowance.— In the Effective date. case of a worker described in paragraph (3)(B) who has not received a trade readjustment allowance under part I of subchapter B pursuant to the certification described in paragraph (3)(A), the worker may receive benefits described in paragraph (2) for a period not to exceed 2 years beginning on the earlier of— “(i) the date on which the worker exhausts all rights to unemployment insurance based on the separation of the worker from the adversely affected employment that is the basis of the certification; or “(ii) the date on which the worker obtains reemployment described in paragraph (3)(B). “(B) Worker who has received trade readjustment allowance.— In the case of a worker described in paragraph (3)(B) who has received a trade readjustment allowance under part I of subchapter B pursuant to the certification described in paragraph (3)(A), the worker may receive benefits described in paragraph (2) for a period of 104 weeks beginning on the date on which the worker obtains reemployment described in paragraph (3)(B), reduced by the total number of weeks for which the worker received such trade readjustment allowance. “(5) Total amount of payments.— “(A) In general.— The payments described in paragraph (2)(A) made to a worker may not exceed— “(i) $12,000 per worker during the eligibility period under paragraph (4)(A); or “(ii) the amount described in subparagraph (B) per worker during the eligibility period under paragraph (4)(B). “(B) Amount described.— The amount described in this subparagraph is the amount equal to the product of— “(i) $12,000, and “(ii) the ratio of— “(I) the total number of weeks in the eligibility period under paragraph (4)(B) with respect to the worker, to “(II) 104 weeks. “(6) Calculation of amount of payments for certain workers.— “(A) In general.— In the Applicability. case of a worker described in paragraph (3)(B)(iii)(II), paragraph (2)(A) shall be applied by substituting the percentage described in subparagraph (B) for ‘50 percent’. “(B) Percentage described.— The percentage described in this subparagraph is the percentage— “(i) equal to ½ of the ratio of— “(I) the number of weekly hours of employment of the worker referred to in paragraph (3)(B)(iii)(II), to “(II) the number of weekly hours of employment of the worker at the time of separation, but “(ii) in no case more than 50 percent. “(7) Limitation on other benefits.— A worker described in paragraph (3)(B) may not receive a trade readjustment allowance under part I of subchapter B pursuant to the certification described in paragraph (3)(A) during any week for which the worker receives a payment described in paragraph (2)(A).” ; and (3) in subsection (b)(2), by striking “subsection (a)(3)(B)” and inserting “subsection (a)(3)”. (b) Extension of Program.— Section 246(b)(1) of the Trade Act of 1974 (19 U.S.C. 2318(b)(1)) is amended by striking “the date that is 5 years” and all that follows through the end period and inserting “December 31, 2010.”. (c) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by striking the item relating to section 246 and inserting the following: “Sec. 246.  Reemployment trade adjustment assistance program.”. Subpart E— Other Matters SEC. 1851. OFFICE OF TRADE ADJUSTMENT ASSISTANCE. (a) In General.— Subchapter C of chapter 2 of title II of the Trade Act of 1974 (19 U.S.C. 2311 et seq.) is amended by adding at the end the following: “SEC. 249A. OFFICE OF TRADE ADJUSTMENT ASSISTANCE. “(a) Establishment.— There is established in the Department of Labor an office to be known as the Office of Trade Adjustment Assistance (in this section referred to as the ‘Office’). “(b) Head of Office.— The head of the Office shall be an administrator, who shall report directly to the Deputy Assistant Secretary for Employment and Training. “(c) Principal Functions.— The principal functions of the administrator of the Office shall be— “(1) to oversee and implement the administration of trade adjustment assistance program under this chapter; and “(2) to carry out functions delegated to the Secretary of Labor under this chapter, including— “(A) making determinations under section 223; “(B) providing information under section 225 about trade adjustment assistance to workers and assisting such workers to prepare petitions or applications for program benefits; “(C) providing assistance to employers of groups of workers that have filed petitions under section 221 in submitting information required by the Secretary relating to the petitions; “(D) ensuring workers covered by a certification of eligibility under subchapter A receive the employment and case management services described in section 235; “(E) ensuring that States fully comply with agreements entered into under section 239; “(F) advocating for workers applying for benefits available under this chapter; “(G) establishing and overseeing a hotline that workers, employers, and other entities may call to obtain information regarding eligibility criteria, procedural requirements, and benefits available under this chapter; and “(H) carrying out such other duties with respect to this chapter as the Secretary specifies for purposes of this section. “(d) Administration.— “(1) Designation.— The administrator shall designate an employee of the Department of Labor with appropriate experience and expertise to carry out the duties described in paragraph (2). “(2) Duties.— The employee designated under paragraph (1) shall— “(A) receive complaints and requests for assistance related to the trade adjustment assistance program under this chapter; “(B) resolve such complaints and requests for assistance, in coordination with other employees of the Office; “(C) compile basic information concerning such complaints and requests for assistance; and “(D) carry out such other duties with respect to this chapter as the Secretary specifies for purposes of this section.” . (b) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by inserting after the item relating to section 249 the following: “Sec. 249A.  Office of Trade Adjustment Assistance.”. SEC. 1852. ACCOUNTABILITY OF STATE AGENCIES; COLLECTION AND PUBLICATION OF PROGRAM DATA; AGREEMENTS WITH STATES. (a) In General.— Section 239(a) of the Trade Act of 1974 (19 U.S.C. 2311(a)) is amended— (1) by amending clause (2) to read as follows: “(2) in accordance with subsection (f), shall make available to adversely affected workers and adversely affected incumbent workers covered by a certification under subchapter A the employment and case management services described in section 235,”; and (2) by striking “will” each place it appears and inserting “shall”. (b) Form and Manner of Data.— Section 239 of the Trade Act of 1974 (19 U.S.C. 2311) is amended— (1) by redesignating subsections (c) through (g) as subsections (d) through (h), respectively; and (2) by inserting after subsection (b) the following: “(c) Form and Manner of Data.— Each agreement under this subchapter shall— “(1) provide the Secretary with the authority to collect any data the Secretary determines necessary to meet the requirements of this chapter; and “(2) specify the form and manner in which any such data requested by the Secretary shall be reported.” . (c) State Activities.— Section 239(g) of the Trade Act of 1974 (as redesignated) is amended— (1) in paragraph (3), by striking “and” at the end; (2) by amending paragraph (4) to read as follows: “(4) perform outreach to, intake of, and orientation for adversely affected workers and adversely affected incumbent workers covered by a certification under subchapter A with respect to assistance and benefits available under this chapter, and” ; and (3) by adding at the end the following: “(5) make employment and case management services described in section 235 available to adversely affected workers and adversely affected incumbent workers covered by a certification under subchapter A and, if funds provided to carry out this chapter are insufficient to make such services available, make arrangements to make such services available through other Federal programs.” . (d) Reporting Requirement.— Section 239(h) of the Trade Act of 1974 (as redesignated) is amended by striking “1998.” and inserting “1998 (29 U.S.C. 2822(b)) and a description of the State’s rapid response activities under section 221(a)(2)(A).”. (e) Control Measures.— Section 239 of the Trade Act of 1974 (19 U.S.C. 2311), as amended, is further amended by adding at the end the following: “(i) Control Measures.— “(1) In general.— The Secretary Requirements. shall require each cooperating State and cooperating State agency to implement effective control measures and to effectively oversee the operation and administration of the trade adjustment assistance program under this chapter, including by means of monitoring the operation of control measures to improve the accuracy and timeliness of the data being collected and reported. “(2) Definition.— For purposes of paragraph (1), the term ‘control measures’ means measures that— “(A) are internal to a system used by a State to collect data; and “(B) are designed to ensure the accuracy and verifiability of such data. “(j) Data Reporting.— “(1) In general.— Any agreement entered into under this section shall require the cooperating State or cooperating State agency to report to the Secretary on a quarterly basis comprehensive performance accountability data, to consist of— “(A) the core indicators of performance described in paragraph (2)(A); “(B) the additional indicators of performance described in paragraph (2)(B), if any; and “(C) a description of efforts made to improve outcomes for workers under the trade adjustment assistance program. “(2) Core indicators described.— “(A) In general.— The core indicators of performance described in this paragraph are— “(i) the percentage of workers receiving benefits under this chapter who are employed during the second calendar quarter following the calendar quarter in which the workers cease receiving such benefits; “(ii) the percentage of such workers who are employed in each of the third and fourth calendar quarters following the calendar quarter in which the workers cease receiving such benefits; and “(iii) the earnings of such workers in each of the third and fourth calendar quarters following the calendar quarter in which the workers cease receiving such benefits. “(B) Additional indicators.— The Secretary and a cooperating State or cooperating State agency may agree upon additional indicators of performance for the trade adjustment assistance program under this chapter, as appropriate. “(3) Standards with respect to reliability of data.— In preparing Procedures. the quarterly report required by paragraph (1), each cooperating State or cooperating State agency shall establish procedures that are consistent with guidelines to be issued by the Secretary to ensure that the data reported are valid and reliable.” . SEC. 1853. VERIFICATION OF ELIGIBILITY FOR PROGRAM BENEFITS.   Section 239 of the Trade Act of 1974 (19 U.S.C. 2311), as amended, is further amended by adding at the end the following: “(k) Verification of Eligibility for Program Benefits.— “(1) In general.— An agreement under this subchapter shall provide that the State shall periodically redetermine that a worker receiving benefits under this subchapter who is not a citizen or national of the United States remains in a satisfactory immigration status. Once satisfactory immigration status has been initially verified through the immigration status verification system described in section 1137(d) of the Social Security Act (42 U.S.C. 1320b-7(d)) for purposes of establishing a worker’s eligibility for unemployment compensation, the State shall reverify the worker’s immigration status if the documentation provided during initial verification will expire during the period in which that worker is potentially eligible to receive benefits under this subchapter. The State shall conduct such redetermination in a timely manner, utilizing the immigration status verification system described in section 1137(d) of the Social Security Act (42 U.S.C. 1320b-7(d)). “(2) Procedures.— The Secretary shall establish procedures to ensure the uniform application by the States of the requirements of this subsection.” . SEC. 1854. COLLECTION OF DATA AND REPORTS; INFORMATION TO WORKERS. (a) In General.— Subchapter C of chapter 2 of title II of the Trade Act of 1974 (19 U.S.C. 2311 et seq.), as amended, is further amended by adding at the end the following: “SEC. 249B. COLLECTION AND PUBLICATION OF DATA AND REPORTS; INFORMATION TO WORKERS. “(a) In General.— Not later System. than 180 days after the date of the enactment of this section, the Secretary shall implement a system to collect and report the data described in subsection (b), as well as any other information that the Secretary considers appropriate to effectively carry out this chapter. “(b) Data to Be Included.— The system required under subsection (a) shall include collection of and reporting on the following data for each fiscal year: “(1) Data on petitions filed, certified, and denied.— “(A) The number of petitions filed, certified, and denied under this chapter. “(B) The number of workers covered by petitions filed, certified, and denied. “(C) The number of petitions, classified by— “(i) the basis for certification, including increased imports, shifts in production, and other bases of eligibility; and “(ii) congressional district of the United States. “(D) The average time for processing such petitions. “(2) Data on benefits received.— “(A) The number of workers receiving benefits under this chapter. “(B) The number of workers receiving each type of benefit, including training, trade readjustment allowances, employment and case management services, and relocation and job search allowances, and, to the extent feasible, credits for health insurance costs under section 35 of the Internal Revenue Code of 1986. “(C) The average time during which such workers receive each such type of benefit. “(3) Data on training.— “(A) The number of workers enrolled in training approved under section 236, classified by major types of training, including classroom training, training through distance learning, on-the-job training, and customized training. “(B) The number of workers enrolled in full-time training and part-time training. “(C) The average duration of training. “(D) The number of training waivers granted under section 231(c), classified by type of waiver. “(E) The number of workers who complete training and the duration of such training. “(F) The number of workers who do not complete training. “(4) Data on outcomes.— “(A) A summary of the quarterly reports required under section 239(j). “(B) The sectors in which workers are employed after receiving benefits under this chapter. “(5) Data on rapid response activities.— Whether rapid response activities were provided with respect to each petition filed under section 221. “(c) Classification of Data.— To the extent possible, in collecting and reporting the data described in subsection (b), the Secretary shall classify the data by industry, State, and national totals. “(d) Report.— Not later than December 15 of each year, the Secretary shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report that includes— “(1) a summary of the information collected under this section for the preceding fiscal year; “(2) information on the distribution of funds to each State pursuant to section 236(a)(2); and “(3) any recommendations of the Secretary with respect to changes in eligibility requirements, benefits, or training funding under this chapter based on the data collected under this section. “(e) Availability of Data.— “(1) In general.— The Secretary Web posting. shall make available to the public, by publishing on the website of the Department of Labor and by other means, as appropriate— “(A) the report required under subsection (d); “(B) the data collected under this section, in a searchable format; and “(C) a list of cooperating States and cooperating State agencies that failed to submit the data required by this section to the Secretary in a timely manner. “(2) Updates.— The Secretary Deadline. shall update the data under paragraph (1) on a quarterly basis.” . (b) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by inserting after the item relating to section 249A the following: “Sec. 249B.  Collection and publication of data and reports; information to workers.”. (c) Effective Date.— The amendments 19 USC 2323 note. made by this section shall take effect on the date of the enactment of this Act. SEC. 1855. FRAUD AND RECOVERY OF OVERPAYMENTS.   Section 243(a)(1) of the Trade Act of 1974 (19 U.S.C. 2315(a)(1)) is amended— (1) in the matter preceding subparagraph (A)— (A) by striking “may waive” and inserting “shall waive”; and (B) by striking “, in accordance with guidelines prescribed by the Secretary,”; and (2) in subparagraph (B), by striking “would be contrary to equity and good conscience” and inserting “would cause a financial hardship for the individual (or the individual’s household, if applicable) when taking into consideration the income and resources reasonably available to the individual (or household) and other ordinary living expenses of the individual (or household)”. SEC. 1856. SENSE OF CONGRESS ON APPLICATION OF TRADE ADJUSTMENT ASSISTANCE. (a) In General.— Chapter 5 of title II of the Trade Act of 1974 (19 U.S.C. 2391 et seq.) is amended by adding at the end the following: “SEC. 288. SENSE OF CONGRESS.   “It is the sense of Congress that the Secretaries of Labor, Commerce, and Agriculture should apply the provisions of chapter 2 (relating to adjustment assistance for workers), chapter 3 (relating to adjustment assistance for firms), chapter 4 (relating to adjustment assistance for communities), and chapter 6 (relating to adjustment assistance for farmers), respectively, with the utmost regard for the interests of workers, firms, communities, and farmers petitioning for benefits under such chapters.” . (b) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by inserting after the item relating to section 287 the following: “Sec. 288.  Sense of Congress.”. SEC. 1857. CONSULTATIONS IN PROMULGATION OF REGULATIONS.   Section 248 of the Trade Act of 1974 (19 U.S.C. 2320) is amended— (1) by striking “The Secretary shall” and inserting the following: “(a) In General.— The Secretary shall” ; and (2) by adding at the end the following: “(b) Consultations.— Not later Deadline. than 90 days before issuing a regulation under subsection (a), the Secretary shall consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives with respect to the regulation.” . SEC. 1858. TECHNICAL CORRECTIONS. (a) Determinations by Secretary of Labor.— Section 223(c) of the Trade Act of 1974 (19 U.S.C. 2273(c)) is amended by striking “his determination” and inserting “a determination”. (b) Qualifying Requirements for Workers.— Section 231(a) of the Trade Act of 1974 (19 U.S.C. 2291(a)) is amended— (1) in paragraph (1)— (A) in the matter preceding subparagraph (A), by striking “his application” and inserting “the worker’s application”; and (B) in subparagraph (A), by striking “he is covered” and inserting “the worker is covered”; (2) in paragraph (2)— (A) in subparagraph (A), by striking the period and inserting a comma; and (B) in subparagraph (D), by striking “5 U.S.C. 8521(a)(1)” and inserting “section 8521(a)(1) of title 5, United States Code”; and (3) in paragraph (3)— (A) by striking “he” each place it appears and inserting “the worker”; and (B) in subparagraph (C), by striking “him” and inserting “the worker”. (c) Subpoena Power.— Section 249 of the Trade Act of 1974 (19 U.S.C. 2321) is amended— (1) in the section heading, by striking “subpena” and inserting “subpoena”; (2) by striking “subpena” and inserting “subpoena” each place it appears; and (3) in subsection (a), by striking “him” and inserting “the Secretary”. (d) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by striking the item relating to section 249 and inserting the following: “Sec. 249.  Subpoena power.”. PART II— TRADE ADJUSTMENT ASSISTANCE FOR FIRMS SEC. 1861. EXPANSION TO SERVICE SECTOR FIRMS. (a) In General.— Section 251 of the Trade Act of 1974 (19 U.S.C. 2341) is amended by inserting “or service sector firm” after “agricultural firm” each place it appears. (b) Definition of Service Sector Firm.— Section 261 of the Trade Act of 1974 (19 U.S.C. 2351) is amended— (1) by striking “chapter,” and inserting “chapter:”; (2) by striking “the term ‘firm’ ” and inserting the following: “(1) Firm.— The term ‘firm’ ” ; and (3) by adding at the end the following: “(2) Service sector firm.— The term ‘service sector firm’ means a firm engaged in the business of supplying services.” . (c) Conforming Amendments.— (1) Section 251(c)(1)(C) of the Trade Act of 1974 (19 U.S.C. 2341(c)(1)(C)) is amended— (A) by inserting “or services” after “articles” the first place it appears; and (B) by inserting “or services which are supplied” after “produced”. (2) Section 251(c)(2)(B)(ii) of such Act is amended to read as follows: “(ii) Any firm that engages in exploration or drilling for oil or natural gas, or otherwise produces oil or natural gas, shall be considered to be producing articles directly competitive with imports of oil and with imports of natural gas.” . SEC. 1862. MODIFICATION OF REQUIREMENTS FOR CERTIFICATION.   Section 251(c)(1)(B) of the Trade Act of 1974 (19 U.S.C. 2341(c)(1)(B)) is amended to read as follows: “(B) that— “(i) sales or production, or both, of the firm have decreased absolutely, “(ii) sales or production, or both, of an article or service that accounted for not less than 25 percent of the total sales or production of the firm during the 12-month period preceding the most recent 12-month period for which date are available have decreased absolutely, “(iii) sales or production, or both, of the firm during the most recent 12-month period for which data are available have decreased compared to— “(I) the average annual sales or production for the firm during the 24-month period preceding that 12-month period, or “(II) the average annual sales or production for the firm during the 36-month period preceding that 12-month period, and “(iv) sales or production, or both, of an article or service that accounted for not less than 25 percent of the total sales or production of the firm during the most recent 12-month period for which data are available have decreased compared to— “(I) the average annual sales or production for the article or service during the 24-month period preceding that 12-month period, or “(II) the average annual sales or production for the article or service during the 36-month period preceding that 12-month period, and” . SEC. 1863. BASIS FOR DETERMINATIONS.   Section 251 of the Trade Act of 1974 (19 U.S.C. 2341), as amended, is further amended by adding at the end the following: “(e) Basis for Secretary’s Determinations.— For Certification. purposes of subsection (c)(1)(C), the Secretary may determine that there are increased imports of like or directly competitive articles or services, if customers accounting for a significant percentage of the decrease in the sales or production of the firm certify to the Secretary that such customers have increased their imports of such articles or services from a foreign country, either absolutely or relative to their acquisition of such articles or services from suppliers located in the United States. “(f) Notification to Firms of Availability of Benefits.— Upon receiving notice from the Secretary of Labor under section 225 of the identity of a firm that is covered by a certification issued under section 223, the Secretary of Commerce shall notify the firm of the availability of adjustment assistance under this chapter.” . SEC. 1864. OVERSIGHT AND ADMINISTRATION; AUTHORIZATION OF APPROPRIATIONS. (a) In General.— Chapter 3 of title II of the Trade Act of 1974 (19 U.S.C. 2341 et seq.) is amended— (1) by striking sections 254, 255, 256, and 19 USC 2344–2347. 257; (2) by redesignating sections 258, 259, 260, 261, 262, 264, and 265, as 19 USC 2348–2352, 2354, 2355. sections 256, 257, 258, 259, 260, 261, and 262, respectively; and (3) by inserting after section 253 the following: “SEC. 254. OVERSIGHT AND ADMINISTRATION. “(a) In General.— The Secretary Grants. shall, to such extent and in such amounts as are provided in appropriations Acts, provide grants to intermediary organizations (referred to in section 253(b)(1)) throughout the United States pursuant to agreements with such intermediary organizations. Each such agreement shall require the intermediary organization to provide benefits to firms certified under section 251. Deadline. Contracts. The Secretary shall, to the maximum extent practicable, provide by October 1, 2010, that contracts entered into with intermediary organizations be for a 12-month period and that all such contracts have the same beginning date and the same ending date. “(b) Distribution of Funds.— “(1) In general.— Not later Deadline. Methodology. than 90 days after the date of the enactment of this subsection, the Secretary shall develop a methodology for the distribution of funds among the intermediary organizations described in subsection (a). “(2) Prompt initial distribution.— The Criteria. methodology described in paragraph (1) shall ensure the prompt initial distribution of funds and establish additional criteria governing the apportionment and distribution of the remainder of such funds among the intermediary organizations. “(3) Criteria.— The methodology described in paragraph (1) shall include criteria based on the data in the annual report on the trade adjustment assistance for firms program described in section 1866 of the Trade and Globalization Adjustment Assistance Act of 2009. “(c) Requirements for Contracts.— An agreement Guidelines. with an intermediary organization described in subsection (a) shall require the intermediary organization to contract for the supply of services to carry out grants under this chapter in accordance with terms and conditions that are consistent with guidelines established by the Secretary. “(d) Consultations.— “(1) Consultations regarding methodology.— The Secretary shall consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives— “(A) not less than 30 days before finalizing the methodology described in subsection (b); and “(B) not less than 60 days before adopting any changes to such methodology. “(2) Consultations regarding guidelines.— The Secretary shall consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives not less than 60 days before finalizing the guidelines described in subsection (c) or adopting any subsequent changes to such guidelines. “SEC. 255. AUTHORIZATION OF APPROPRIATIONS. “(a) In General.— There are Time period. authorized to be appropriated to the Secretary $50,000,000 for each of the fiscal years 2009 through 2010, and $12,501,000 for the period beginning October 1, 2010, and ending December 31, 2010, to carry out the provisions of this chapter. Amounts appropriated pursuant to this subsection shall— “(1) be Deadline. available to provide adjustment assistance to firms that file a petition for such assistance pursuant to this chapter on or before December 31, 2010; and “(2) otherwise remain available until expended. “(b) Personnel.— Of the amounts appropriated pursuant to this section for each fiscal year, $350,000 shall be available for full-time positions in the Department of Commerce to administer the provisions of this chapter. Establishment. Of such funds the Secretary shall make available to the Economic Development Administration such sums as may be necessary to establish the position of Director of Adjustment Assistance for Firms and such other full-time positions as may be appropriate to administer the provisions of this chapter.” . (b) Residual Authority.— The Secretary of Commerce shall have the authority to modify, terminate, resolve, liquidate, or take any other action with respect to a loan, guarantee, contract, or any other financial assistance that was extended under section 254, 255, 256, or 257 of the Trade Act of 1974 (19 U.S.C. 2344, 2345, 2346, and 2347), as in effect on the day before the effective date set forth in section 1891. (c) Conforming Amendments.— (1) Section 256 of the Trade Act of 1974, as redesignated by subsection (a) of this section, 19 USC 2348. is amended by striking subsection (d). (2) Section 258 of the Trade Act of 1974, as redesignated by subsection (a) of this section, 19 USC 2350. is amended— (A) in the first sentence, by striking “and financial”; and (B) in the last sentence— (i) by striking “sections 253 and 254” and inserting “section 253”; and (ii) by striking “title 28 of the United States Code” and inserting “title 28, United States Code”. (d) Clerical Amendments.— The table of contents of the Trade Act of 1974 is amended by striking the items relating to sections 254, 255, 256, 257, 258, 259, 260, 261, 262, 264, and 265, and inserting the following: “Sec. 254.  Oversight and administration. “Sec. 255.  Authorization of appropriations. “Sec. 256.  Protective provisions. “Sec. 257.  Penalties. “Sec. 258.  Civil actions. “Sec. 259.  Definitions. “Sec. 260.  Regulations. “Sec. 261.  Study by Secretary of Commerce when International Trade Commission begins investigation; action where there is affirmative finding. “Sec. 262.  Assistance to industries.”. (e) Effective Date.— This section and the amendments made by this section shall take effect upon the expiration of the 90-day period beginning on the date of the enactment of this Act, except that subsections (b) and (d) of section 254 of the Trade Act of 1974 (as added by subsection (a) of this section) shall take effect on such date of enactment. SEC. 1865. INCREASED PENALTIES FOR FALSE STATEMENTS.   Section 257 of the Trade Act of 1974, as redesignated by section 1864(a), is 19 USC 2349. amended to read as follows: “SEC. 257. PENALTIES.   “Any person who— “(1) makes a false statement of a material fact knowing it to be false, or knowingly fails to disclose a material fact, or willfully overvalues any security, for the purpose of influencing in any way a determination under this chapter, or for the purpose of obtaining money, property, or anything of value under this chapter, or “(2) makes a false statement of a material fact knowing it to be false, or knowingly fails to disclose a material fact, when providing information to the Secretary during an investigation of a petition under this chapter, shall be imprisoned for not more than 2 years, or fined under title 18, United States Code, or both.” . SEC. 1866. ANNUAL REPORT ON TRADE ADJUSTMENT ASSISTANCE FOR FIRMS. (a) In General.— Not later than December 15, 2009, and each year thereafter, the Secretary of Commerce shall prepare a report containing data regarding the trade adjustment assistance for firms program provided for in chapter 3 of title II of the Trade Act of 1974 (19 U.S.C. 2341 et seq.) for the preceding fiscal year. The data shall include the following: (1) The number of firms that inquired about the program. (2) The number of petitions filed under section 251. (3) The number of petitions certified and denied. (4) The average time for processing petitions. (5) The number of petitions filed and firms certified for each congressional district of the United States. (6) The number of firms that received assistance in preparing their petitions. (7) The number of firms that received assistance developing business recovery plans. (8) The number of business recovery plans approved and denied by the Secretary of Commerce. (9) Sales, employment, and productivity at each firm participating in the program at the time of certification. (10) Sales, employment, and productivity at each firm upon completion of the program and each year for the 2-year period following completion. (11) The financial assistance received by each firm participating in the program. (12) The financial contribution made by each firm participating in the program. (13) The types of technical assistance included in the business recovery plans of firms participating in the program. (14) The number of firms leaving the program before completing the project or projects in their business recovery plans and the reason the project was not completed. (b) Classification of Data.— To the extent possible, in collecting and reporting the data described in subsection (a), the Secretary shall classify the data by intermediary organization, State, and national totals. (c) Report to Congress; Publication.— The Secretary of Commerce shall— (1) submit the report described in subsection (a) to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives; and (2) publish the report in the Federal Register and on the website of the Department of Commerce. (d) Protection of Confidential Information.— The Secretary of Commerce may not release information described in subsection (a) that the Secretary considers to be confidential business information unless the person submitting the confidential business information had notice, at the time of submission, that such information would be released by the Secretary, or such person subsequently consents to the release of the information. Nothing in this subsection shall be construed to prohibit the Secretary from providing such confidential business information to a court in camera or to another party under a protective order issued by a court. SEC. 1867. TECHNICAL CORRECTIONS. (a) In General.— Section 251 of the Trade Act of 1974 (19 U.S.C. 2341), as amended, is further amended— (1) in subsection (a), by striking “he has” and inserting “the Secretary has”; and (2) in subsection (d), by striking “60 days” and inserting “40 days”. (b) Technical Assistance.— Section 253(a)(3) of the Trade Act of 1974 (19 U.S.C. 2343(a)(3)) is amended by striking “of a certified firm” and inserting “to a certified firm”. PART III— TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES SEC. 1871. PURPOSE.   The purpose of the amendments made by this part is to assist communities impacted by trade with economic adjustment through the coordination of Federal, State, and local resources, the creation of community-based development strategies, and the development and provision of programs that meet the training needs of workers covered by certifications under section 223. SEC. 1872. TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES. (a) In General.— Chapter 4 of title II of the Trade Act of 1974 (19 U.S.C. 2371 et seq.) is amended to read as follows: “CHAPTER 4— TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES “Subchapter A— Trade Adjustment Assistance for Communities “SEC. 271. DEFINITIONS.   “In this subchapter: “(1) Agricultural commodity producer.— The term ‘agricultural commodity producer’ has the meaning given that term in section 291. “(2) Community.— The term ‘community’ means a city, county, or other political subdivision of a State or a consortium of political subdivisions of a State. “(3) Community impacted by trade.— The term ‘community impacted by trade’ means a community described in section 273(b)(2). “(4) Eligible community.— The term ‘eligible community’ means a community that the Secretary has determined under section 273(b)(1) is eligible to apply for assistance under this subchapter. “(5) Secretary.— The term ‘Secretary’ means the Secretary of Commerce. “SEC. 272. ESTABLISHMENT OF TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES PROGRAM.   “Not Deadline. later than August 1, 2009, the Secretary shall establish a trade adjustment assistance for communities program at the Department of Commerce under which the Secretary shall— “(1) provide technical assistance under section 274 to communities impacted by trade to facilitate the economic adjustment of those communities; and “(2) award grants to communities impacted by trade to carry out strategic plans developed under section 276. “SEC. 273. ELIGIBILITY; NOTIFICATION. “(a) Petition.— “(1) In general.— A community may submit a petition to the Secretary for an affirmative determination under subsection (b)(1) that the community is eligible to apply for assistance under this subchapter if— “(A) on or after August 1, 2009, one or more certifications described in subsection (b)(3) are made with respect to the community; and “(B) the community submits the petition not later than 180 days after the date of the most recent certification. “(2) Special rule with respect to certain communities.— In the Time period. case of a community with respect to which one or more certifications described in subsection (b)(3) were made on or after January 1, 2007, and before August 1, 2009, the community may submit not later than February 1, 2010, a petition to the Secretary for an affirmative determination under subsection (b)(1). “(b) Affirmative Determination.— “(1) In general.— The Secretary shall make an affirmative determination that a community is eligible to apply for assistance under this subchapter if the Secretary determines that the community is a community impacted by trade. “(2) Community impacted by trade.— A community is a community impacted by trade if— “(A) one or more certifications described in paragraph (3) are made with respect to the community; and “(B) the Secretary determines that the community is significantly affected by the threat to, or the loss of, jobs associated with any such certification. “(3) Certification described.— A certification described in this paragraph is a certification— “(A) by the Secretary of Labor that a group of workers in the community is eligible to apply for assistance under section 223; “(B) by the Secretary of Commerce that a firm located in the community is eligible to apply for adjustment assistance under section 251; or “(C) by the Secretary of Agriculture that a group of agricultural commodity producers in the community is eligible to apply for adjustment assistance under section 293. “(c) Notifications.— “(1) Notification to the governor.— The Governor of a State shall be notified promptly— “(A) by the Secretary of Labor, upon making a determination that a group of workers in the State is eligible for assistance under section 223; “(B) by the Secretary of Commerce, upon making a determination that a firm in the State is eligible for assistance under section 251; and “(C) by the Secretary of Agriculture, upon making a determination that a group of agricultural commodity producers in the State is eligible for assistance under section 293. “(2) Notification to community.— Upon making an affirmative determination under subsection (b)(1) that a community is eligible to apply for assistance under this subchapter, the Secretary shall promptly notify the community and the Governor of the State in which the community is located— “(A) of the affirmative determination; “(B) of the applicable provisions of this subchapter; and “(C) of the means for obtaining assistance under this subchapter and other appropriate economic assistance that may be available to the community. “SEC. 274. TECHNICAL ASSISTANCE. “(a) In General.— The Secretary shall provide comprehensive technical assistance to an eligible community to assist the community to— “(1) diversify and strengthen the economy in the community; “(2) identify significant impediments to economic development that result from the impact of trade on the community; and “(3) develop a strategic plan under section 276 to address economic adjustment and workforce dislocation in the community, including unemployment among agricultural commodity producers. “(b) Coordination of Federal Response.— The Secretary shall coordinate the Federal response to an eligible community by— “(1) identifying Federal, State, and local resources that are available to assist the community in responding to economic distress; and “(2) assisting the community in accessing available Federal assistance and ensuring that such assistance is provided in a targeted, integrated manner. “(c) Interagency Community Assistance Working Group.— “(1) In general.— The Secretary Establishment. shall establish an interagency Community Assistance Working Group, to be chaired by the Secretary or the Secretary’s designee, which shall assist the Secretary with the coordination of the Federal response pursuant to subsection (b). “(2) Membership.— The Working Group shall consist of representatives of any Federal department or agency with responsibility for providing economic adjustment assistance, including the Department of Agriculture, the Department of Defense, the Department of Education, the Department of Labor, the Department of Housing and Urban Development, the Department of Health and Human Services, the Small Business Administration, the Department of the Treasury, and any other Federal, State, or regional public department or agency the Secretary determines to be appropriate. “SEC. 275. GRANTS FOR ELIGIBLE COMMUNITIES. “(a) In General.— The Secretary may award a grant under this section to an eligible community to assist the community in carrying out any project or program that is included in a strategic plan developed by the community under section 276. “(b) Application.— “(1) In general.— An eligible community seeking to receive a grant under this section shall submit a grant application to the Secretary that contains— “(A) the strategic plan developed by the community under section 276(a)(1)(A) and approved by the Secretary under section 276(a)(1)(B); and “(B) a description of the project or program included in the strategic plan with respect to which the community seeks the grant. “(2) Coordination among grant programs.— If an entity in an eligible community is seeking or plans to seek a Community College and Career Training Grant under section 278 or a Sector Partnership Grant under section 279A while the eligible community is seeking a grant under this section, the eligible community shall include in the grant application a description of how the eligible community will integrate any projects or programs carried out using a grant under this section with any projects or programs that may be carried out using such other grants. “(c) Limitation.— An eligible community may not be awarded more than $5,000,000 under this section. “(d) Cost-Sharing.— “(1) Federal share.— The Federal share of a project or program for which a grant is awarded under this section may not exceed 95 percent of the cost of such project or program. “(2) Community share.— The Secretary shall require, as a condition of awarding a grant to an eligible community under this section, that the eligible community contribute not less than an amount equal to 5 percent of the amount of the grant toward the cost of the project or program for which the grant is awarded. “(e) Grants to Small- and Medium-Sized Communities.— The Secretary shall give priority to grant applications submitted under this section by eligible communities that are small- and medium-sized communities. “(f) Annual Report.— Not later than December 15 in each of the calendar years 2009 through 2011, the Secretary shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report— “(1) describing each grant awarded under this section during the preceding fiscal year; and “(2) assessing the impact on the eligible community of each such grant awarded in a fiscal year before the fiscal year referred to in paragraph (1). “SEC. 276. STRATEGIC PLANS. “(a) In General.— “(1) Development.— An eligible community that intends to apply for a grant under section 275 shall— “(A) develop a strategic plan for the community’s economic adjustment to the impact of trade; and “(B) submit the plan to the Secretary for evaluation and approval. “(2) Involvement of private and public entities.— “(A) In general.— To the extent practicable, an eligible community shall consult with entities described in subparagraph (B) in developing a strategic plan under paragraph (1). “(B) Entities described.— Entities described in this subparagraph are public and private entities within the eligible community, including— “(i) local, county, or State government agencies serving the community; “(ii) firms, including small- and medium-sized firms, within the community; “(iii) local workforce investment boards established under section 117 of the Workforce Investment Act of 1998 (29 U.S.C. 2832); “(iv) labor organizations, including State labor federations and labor-management initiatives, representing workers in the community; and “(v) educational institutions, local educational agencies, or other training providers serving the community. “(b) Contents.— The strategic plan shall, at a minimum, contain the following: “(1) A description and analysis of the capacity of the eligible community to achieve economic adjustment to the impact of trade. “(2) An analysis of the economic development challenges and opportunities facing the community as well as the strengths and weaknesses of the economy of the community. “(3) An assessment of the commitment of the eligible community to the strategic plan over the long term and the participation and input of members of the community affected by economic dislocation. “(4) A description of the role and the participation of the entities described in subsection (a)(2)(B) in developing the strategic plan. “(5) A description of the projects to be undertaken by the eligible community under the strategic plan. “(6) A description of how the strategic plan and the projects to be undertaken by the eligible community will facilitate the community’s economic adjustment. “(7) A description of the educational and training programs available to workers in the eligible community and the future employment needs of the community. “(8) An assessment of the cost of implementing the strategic plan, the timing of funding required by the eligible community to implement the strategic plan, and the method of financing to be used to implement the strategic plan. “(9) A strategy for continuing the economic adjustment of the eligible community after the completion of the projects described in paragraph (5). “(c) Grants to Develop Strategic Plans.— “(1) In general.— The Secretary, upon receipt of an application from an eligible community, may award a grant to the community to assist the community in developing a strategic plan under subsection (a)(1). A grant awarded under this paragraph shall not exceed 75 percent of the cost of developing the strategic plan. “(2) Funds to be used.— Of the funds appropriated pursuant to section 277(c), the Secretary may make available not more than $25,000,000 for each of the fiscal years 2009 and 2010, and $6,250,000 for the period beginning October 1, 2010, and ending December 31, 2010, to provide grants to eligible communities under paragraph (1). “SEC. 277. GENERAL PROVISIONS. “(a) Regulations.— “(1) In general.— The Secretary shall prescribe such regulations as are necessary to carry out the provisions of this subchapter, including— “(A) establishing specific guidelines for the submission and evaluation of strategic plans under section 276; “(B) establishing specific guidelines for the submission and evaluation of grant applications under section 275; and “(C) administering the grant programs established under sections 275 and 276. “(2) Consultations.— The Secretary shall consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives not less than 90 days prior to promulgating any final rule or regulation pursuant to paragraph (1). “(b) Personnel.— The Secretary shall designate such staff as may be necessary to carry out the responsibilities described in this subchapter. “(c) Authorization of Appropriations.— “(1) In general.— There are authorized to be appropriated to the Secretary $150,000,000 for each of the fiscal years 2009 and 2010, and $37,500,000 for the period beginning October 1, 2010, and ending December 31, 2010, to carry out this subchapter. “(2) Availability.— Amounts appropriated pursuant to this subchapter— “(A) shall be available to provide adjustment assistance to communities that have been approved for assistance pursuant to this chapter on or before December 31, 2010; and “(B) shall otherwise remain available until expended. “(3) Supplement not supplant.— Funds appropriated pursuant to this subchapter shall be used to supplement and not supplant other Federal, State, and local public funds expended to provide economic development assistance for communities. “Subchapter B— Community College and Career Training Grant Program “SEC. 278. COMMUNITY COLLEGE AND CAREER TRAINING GRANT PROGRAM. “(a) Grants Authorized.— “(1) In general.— Beginning August 1, 2009, the Secretary may award Community College and Career Training Grants to eligible institutions for the purpose of developing, offering, or improving educational or career training programs for workers eligible for training under section 236. “(2) Limitations.— An eligible institution may not be awarded— “(A) more than one grant under this section; or “(B) a grant under this section in excess of $1,000,000. “(b) Definitions.— In this section: “(1) Eligible institution.— The term ‘eligible institution’ means an institution of higher education (as defined in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002)), but only with respect to a program offered by the institution that can be completed in not more than 2 years. “(2) Secretary.— The term ‘Secretary’ means the Secretary of Labor. “(c) Grant Proposals.— “(1) In general.— An eligible institution seeking to receive a grant under this section shall submit a grant proposal to the Secretary at such time, in such manner, and containing such information as the Secretary may require. “(2) Guidelines.— Not later than June 1, 2009, the Secretary shall— “(A) promulgate guidelines for the submission of grant proposals under this section; and “(B) publish and maintain such guidelines on the website of the Department of Labor. “(3) Assistance.— The Secretary shall offer assistance in preparing a grant proposal to any eligible institution that requests such assistance. “(4) General requirements for grant proposals.— “(A) In general.— A grant proposal submitted to the Secretary under this section shall include a detailed description of— “(i) the specific project for which the grant proposal is submitted, including the manner in which the grant will be used to develop, offer, or improve an educational or career training program that is suited to workers eligible for training under section 236; “(ii) the extent to which the project for which the grant proposal is submitted will meet the educational or career training needs of workers in the community served by the eligible institution who are eligible for training under section 236; “(iii) the extent to which the project for which the grant proposal is submitted fits within any overall strategic plan developed by an eligible community under section 276; “(iv) the extent to which the project for which the grant proposal is submitted relates to any project funded by a Sector Partnership Grant awarded under section 279A; and “(v) any previous experience of the eligible institution in providing educational or career training programs to workers eligible for training under section 236. “(B) Absence of experience.— The absence of any previous experience in providing educational or career training programs described in subparagraph (A)(v) shall not automatically disqualify an eligible institution from receiving a grant under this section. “(5) Community outreach required.— In order to be considered by the Secretary, a grant proposal submitted by an eligible institution under this section shall— “(A) demonstrate that the eligible institution— “(i) reached out to employers, and other entities described in section 276(a)(2)(B) to identify— “(I) any shortcomings in existing educational and career training opportunities available to workers in the community; and “(II) any future employment opportunities within the community and the educational and career training skills required for workers to meet the future employment demand; “(ii) reached out to other similarly situated institutions in an effort to benefit from any best practices that may be shared with respect to providing educational or career training programs to workers eligible for training under section 236; and “(iii) reached out to any eligible partnership in the community that has sought or received a Sector Partnership Grant under section 279A to enhance the effectiveness of each grant and avoid duplication of efforts; and “(B) include a detailed description of— “(i) the extent and outcome of the outreach conducted under subparagraph (A); “(ii) the extent to which the project for which the grant proposal is submitted will contribute to meeting any shortcomings identified under subparagraph (A)(i)(I) or any educational or career training needs identified under subparagraph (A)(i)(II); and “(iii) the extent to which employers, including small- and medium-sized firms within the community, have demonstrated a commitment to employing workers who would benefit from the project for which the grant proposal is submitted. “(d) Criteria for Award of Grants.— “(1) In general.— Subject to the appropriation of funds, the Secretary shall award a grant under this section based on— “(A) a determination of the merits of the grant proposal submitted by the eligible institution to develop, offer, or improve educational or career training programs to be made available to workers eligible for training under section 236; “(B) an evaluation of the likely employment opportunities available to workers who complete an educational or career training program that the eligible institution proposes to develop, offer, or improve; and “(C) an evaluation of prior demand for training programs by workers eligible for training under section 236 in the community served by the eligible institution, as well as the availability and capacity of existing training programs to meet future demand for training programs. “(2) Priority for certain communities.— In awarding grants under this section, the Secretary shall give priority to an eligible institution that serves a community that the Secretary of Commerce has determined under section 273 is eligible to apply for assistance under subchapter A within the 5-year period preceding the date on which the grant proposal is submitted to the Secretary under this section. “(3) Matching requirements.— A grant awarded under this section may not be used to satisfy any private matching requirement under any other provision of law. “(e) Annual Report.— Not later than December 15 in each of the calendar years 2009 through 2011, the Secretary shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report— “(1) describing each grant awarded under this section during the preceding fiscal year; and “(2) assessing the impact of each award of a grant under this section in a fiscal year preceding the fiscal year referred to in paragraph (1) on workers receiving training under section 236. “SEC. 279. AUTHORIZATION OF APPROPRIATIONS. “(a) Authorization of Appropriations.— There are authorized to be appropriated to the Secretary of Labor $40,000,000 for each of the fiscal years 2009 and 2010, and $10,000,000 for the period beginning October 1, 2010, and ending December 31, 2010, to fund the Community College and Career Training Grant Program. Funds appropriated pursuant to this section shall remain available until expended. “(b) Supplement Not Supplant.— Funds appropriated pursuant to this section shall be used to supplement and not supplant other Federal, State, and local public funds expended to support community college and career training programs. “Subchapter C— Industry or Sector Partnership Grant Program for Communities Impacted by Trade “SEC. 279A. INDUSTRY OR SECTOR PARTNERSHIP GRANT PROGRAM FOR COMMUNITIES IMPACTED BY TRADE. “(a) Purpose.— The purpose of this subchapter is to facilitate efforts by industry or sector partnerships to strengthen and revitalize industries and create employment opportunities for workers in communities impacted by trade. “(b) Definitions.— In this subchapter: “(1) Community impacted by trade.— The term ‘community impacted by trade’ has the meaning given that term in section 271. “(2) Dislocated worker.— The term ‘dislocated worker’ means a worker who has been totally or partially separated, or is threatened with total or partial separation, from employment in an industry or sector in a community impacted by trade. “(3) Eligible partnership.— The term ‘eligible partnership’ means a voluntary partnership composed of public and private persons, firms, or other entities within a community impacted by trade, that shall include representatives of— “(A) an industry or sector within the community, including an industry association; “(B) local, county, or State government; “(C) multiple firms in the industry or sector, including small- and medium-sized firms, within the community; “(D) local workforce investment boards established under section 117 of the Workforce Investment Act of 1998 (29 U.S.C. 2832); “(E) labor organizations, including State labor federations and labor-management initiatives, representing workers in the community; and “(F) educational institutions, local educational agencies, or other training providers serving the community. “(4) Lead entity.— The term ‘lead entity’ means— “(A) an entity designated by the eligible partnership to be responsible for submitting a grant proposal under subsection (e) and serving as the eligible partnership’s fiscal agent in expending any Sector Partnership Grant awarded under this section; or “(B) a State agency designated by the Governor of the State to carry out the responsibilities described in subparagraph (A). “(5) Secretary.— The term ‘Secretary’ means the Secretary of Labor. “(6) Targeted industry or sector.— The term ‘targeted industry or sector’ means the industry or sector represented by an eligible partnership. “(c) Sector Partnership Grants Authorized.— Beginning Effective date. on August 1, 2009, and subject to the appropriation of funds, the Secretary shall award Sector Partnership Grants to eligible partnerships to assist the eligible partnerships in carrying out projects, over periods of not more than 3 years, to strengthen and revitalize industries and sectors and create employment opportunities for dislocated workers. “(d) Use of Sector Partnership Grants.— An eligible partnership may use a Sector Partnership Grant to carry out any project that the Secretary determines will further the purpose of this subchapter, which may include— “(1) identifying the skill needs of the targeted industry or sector and any gaps in the available supply of skilled workers in the community impacted by trade, and developing strategies for filling the gaps, including by— “(A) developing systems to better link firms in the targeted industry or sector to available skilled workers; “(B) helping firms in the targeted industry or sector to obtain access to new sources of qualified job applicants; “(C) retraining dislocated and incumbent workers; or “(D) facilitating the training of new skilled workers by aligning the instruction provided by local suppliers of education and training services with the needs of the targeted industry or sector; “(2) analyzing the skills and education levels of dislocated and incumbent workers and developing training to address skill gaps that prevent such workers from obtaining jobs in the targeted industry or sector; “(3) helping firms, especially small- and medium-sized firms, in the targeted industry or sector increase their productivity and the productivity of their workers; “(4) helping such firms retain incumbent workers; “(5) developing learning consortia of small- and medium-sized firms in the targeted industry or sector with similar training needs to enable the firms to combine their purchases of training services, and thereby lower their training costs; “(6) providing information and outreach activities to firms in the targeted industry or sector regarding the activities of the eligible partnership and other local service suppliers that could assist the firms in meeting needs for skilled workers; “(7) seeking, applying, and disseminating best practices learned from similarly situated communities impacted by trade in the development and implementation of economic growth and revitalization strategies; and “(8) identifying additional public and private resources to support the activities described in this subsection, which may include the option to apply for a community grant under section 275 or a Community College and Career Training Grant under section 278 (subject to meeting any additional requirements of those sections). “(e) Grant Proposals.— “(1) In general.— The lead entity of an eligible partnership seeking to receive a Sector Partnership Grant under this section shall submit a grant proposal to the Secretary at such time, in such manner, and containing such information as the Secretary may require. “(2) General requirements of grant proposals.— A grant proposal submitted under paragraph (1) shall, at a minimum— “(A) identify the members of the eligible partnership; “(B) identify the targeted industry or sector for which the eligible partnership intends to carry out projects using the Sector Partnership Grant; “(C) describe the goals that the eligible partnership intends to achieve to promote the targeted industry or sector; “(D) describe the projects that the eligible partnership will undertake to achieve such goals; “(E) demonstrate that the eligible partnership has the organizational capacity to carry out the projects described in subparagraph (D); “(F) explain— “(i) whether— “(I) the community impacted by trade has sought or received a community grant under section 275; “(II) an eligible institution in the community has sought or received a Community College and Career Training Grant under section 278; or “(III) any other entity in the community has received funds pursuant to any other federally funded training project; and “(ii) how the eligible partnership will coordinate its use of a Sector Partnership Grant with the use of such other grants or funds in order to enhance the effectiveness of each grant and any such funds and avoid duplication of efforts; and “(G) include performance measures, developed based on the performance measures issued by the Secretary under subsection (g)(2), and a timeline for measuring progress toward achieving the goals described in subparagraph (C). “(f) Award of Grants.— “(1) In general.— Upon application by the lead entity of an eligible partnership, the Secretary may award a Sector Partnership Grant to the eligible partnership to assist the partnership in carrying out any of the projects in the grant proposal that the Secretary determines will further the purposes of this subchapter. “(2) Limitations.— An eligible partnership may not be awarded— “(A) more than one Sector Partnership Grant; or “(B) a total grant award under this subchapter in excess of— “(i) except as provided in clause (ii), $2,500,000; or “(ii) in the case of an eligible partnership located within a community impacted by trade that is not served by an institution receiving a Community College and Career Training Grant under section 278, $3,000,000. “(g) Administration by the Secretary.— “(1) Technical assistance and oversight.— “(A) In general.— The Secretary shall provide technical assistance to, and oversight of, the lead entity of an eligible partnership in applying for and administering Sector Partnership Grants awarded under this section. “(B) Technical assistance.— Technical assistance provided under subparagraph (A) shall include providing conferences and such other methods of collecting and disseminating information on best practices developed by eligible partnerships as the Secretary determines appropriate. “(C) Grants or contracts for technical assistance.— The Secretary may award a grant or contract to one or more national or State organizations to provide technical assistance to foster the planning, formation, and implementation of eligible partnerships. “(2) Performance measures.— The Secretary shall issue a range of performance measures, with quantifiable benchmarks, and methodologies that eligible partnerships may use to measure progress toward the goals described in subsection (e). In developing such measures, the Secretary shall consider the benefits of the eligible partnership and its activities for workers, firms, industries, and communities. “(h) Reports.— “(1) Progress report.— Not later than 1 year after receiving a Sector Partnership Grant, and 3 years thereafter, the lead entity shall submit to the Secretary, on behalf of the eligible partnership, a report containing— “(A) a detailed description of the progress made toward achieving the goals described in subsection (e)(2)(C), using the performance measures required under subsection (e)(2)(G); “(B) a detailed evaluation of the impact of the grant award on workers and employers in the community impacted by trade; and “(C) a detailed description of all expenditures of funds awarded to the eligible partnership under the Sector Partnership Grant approved by the Secretary under this subchapter. “(2) Annual report.— Not later than December 15 in each of the calendar years 2009 through 2011, the Secretary shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report— “(A) describing each Sector Partnership Grant awarded to an eligible partnership during the preceding fiscal year; and “(B) assessing the impact of each Sector Partnership Grant awarded in a fiscal year preceding the fiscal year referred to in subparagraph (A) on workers and employers in communities impacted by trade. “SEC. 279B. AUTHORIZATION OF APPROPRIATIONS. “(a) In General.— There are authorized to be appropriated to the Secretary of Labor $40,000,000 for each of the fiscal years 2009 and 2010, and $10,000,000 for the period beginning October 1, 2010, and ending December 31, 2010, to carry out the Sector Partnership Grant program under section 279A. Funds appropriated pursuant to this section shall remain available until expended. “(b) Supplement Not Supplant.— Funds appropriated pursuant to this section shall be used to supplement and not supplant other Federal, State, and local public funds expended to support the economic development of local communities. “(c) Administrative Costs.— The Secretary may retain not more than 5 percent of the funds appropriated pursuant to this section for each fiscal year to administer the Sector Partnership Grant program under section 279A. “Subchapter D— General Provisions “SEC. 279C. RULE OF CONSTRUCTION.   “Nothing in this chapter prevents a worker from receiving trade adjustment assistance under chapter 2 of this title at the same time the worker is receiving assistance in any manner from— “(1) a community receiving a community grant under subchapter A; “(2) an eligible institution receiving a Community College and Career Training Grant under subchapter B; or “(3) an eligible partnership receiving a Sector Partnership Grant under subchapter C.” . SEC. 1873. CONFORMING AMENDMENTS. (a) Table of Contents.— The table of contents of the Trade Act of 1974 is amended by striking the items relating to chapter 4 of title II and inserting the following: “Chapter 4— Trade Adjustment Assistance for Communities “Subchapter A— Trade Adjustment Assistance for Communities “Sec. 271.  Definitions. “Sec. 272.  Establishment of trade adjustment assistance for communities program. “Sec. 273.  Eligibility; notification. “Sec. 274.  Technical assistance. “Sec. 275.  Grants for eligible communities. “Sec. 276.  Strategic plans. “Sec. 277.  General provisions. “Subchapter B— Community College and Career Training Grant Program “Sec. 278.  Community college and career training grant program. “Sec. 279.  Authorization of appropriations. “Subchapter C— Industry or Sector Partnership Grant Program for Communities Impacted by Trade “Sec. 279A.  Industry or sector partnership grant program for communities impacted by trade. “Sec. 279B.  Authorization of appropriations. “Subchapter D— General Provisions “Sec. 279C.  Rule of construction.” (b) Judicial Review.— (1) Section 284(a) of the Trade Act of 1974 (19 U.S.C. 2395(a)) is amended— (A) by inserting “or 296” after “section 293”; (B) by striking “or any other interested domestic party” and inserting “or authorized representative of a community”; and (C) by striking “section 271” and inserting “section 273”. (2) Section 1581(d) of title 28, United States Code, is amended— (A) in paragraph (2), by striking “; and” and inserting a semicolon; (B) in paragraph (3)— (i) by striking “271” and inserting “273”; and (ii) by striking the period and inserting “; and”; and (C) by adding at the end the following: “(4) any final determination of the Secretary of Agriculture under section 293 or 296 of the Trade Act of 1974 (19 U.S.C. 2401b) with respect to the eligibility of a group of agricultural commodity producers for adjustment assistance under such Act.” . PART IV— TRADE ADJUSTMENT ASSISTANCE FOR FARMERS SEC. 1881. DEFINITIONS.   Section 291 of the Trade Act of 1974 (19 U.S.C. 2401) is amended— (1) by amending paragraph (1) to read as follows: “(1) Agricultural commodity.— The term ‘agricultural commodity’ includes— “(A) any agricultural commodity (including livestock) in its raw or natural state; “(B) any class of goods within an agricultural commodity; and “(C) in the case of an agricultural commodity producer described in paragraph (2)(B), wild-caught aquatic species.” ; (2) by amending paragraph (2) to read as follows: “(2) Agricultural commodity producer.— The term ‘agricultural commodity producer’ means— “(A) a person that shares in the risk of producing an agricultural commodity and that is entitled to a share of the commodity for marketing, including an operator, a sharecropper, or a person that owns or rents the land on which the commodity is produced; or “(B) a person that reports gain or loss from the trade or business of fishing on the person’s annual Federal income tax return for the taxable year that most closely corresponds to the marketing year with respect to which a petition is filed under section 292.” ; and (3) by adding at the end the following: “(7) Marketing year.— The term ‘marketing year’ means— “(A) a marketing year designated by the Secretary with respect to an agricultural commodity; or “(B) in the case of an agricultural commodity with respect to which the Secretary does not designate a marketing year, a calendar year.” . SEC. 1882. ELIGIBILITY. (a) In General.— Section 292 of the Trade Act of 1974 (19 U.S.C. 2401a) is amended by striking subsections (c) through (e) and inserting the following: “(c) Group Eligibility Requirements.— Certification. The Secretary shall certify a group of agricultural commodity producers as eligible to apply for adjustment assistance under this chapter if the Secretary determines that— “(1) (A) the national average price of the agricultural commodity produced by the group during the most recent marketing year for which data are available is less than 85 percent of the average of the national average price for the commodity in the 3 marketing years preceding such marketing year; “(B) the quantity of production of the agricultural commodity produced by the group during such marketing year is less than 85 percent of the average of the quantity of production of the commodity produced by the group in the 3 marketing years preceding such marketing year; “(C) the value of production of the agricultural commodity produced by the group during such marketing year is less than 85 percent of the average value of production of the commodity produced by the group in the 3 marketing years preceding such marketing year; or “(D) the cash receipts for the agricultural commodity produced by the group during such marketing year are less than 85 percent of the average of the cash receipts for the commodity produced by the group in the 3 marketing years preceding such marketing year; “(2) the volume of imports of articles like or directly competitive with the agricultural commodity produced by the group in the marketing year with respect to which the group files the petition increased compared to the average volume of such imports during the 3 marketing years preceding such marketing year; and “(3) the increase in such imports contributed importantly to the decrease in the national average price, quantity of production, or value of production of, or cash receipts for, the agricultural commodity, as described in paragraph (1). “(d) Eligibility of Certain Other Producers.— An agricultural commodity producer or group of producers that resides outside of the State or region identified in the petition filed under subsection (a) may file a request to become a party to that petition not later than 15 days after the date the notice is published in the Federal Register under subsection (a) with respect to that petition. “(e) Treatment of Classes of Goods Within a Commodity.— In any case in which there are separate classes of goods within an agricultural commodity, the Secretary shall treat each class as a separate commodity in determining under subsection (c)— “(1) group eligibility; “(2) the national average price, quantity of production, or value of production, or cash receipts; and “(3) the volume of imports.” . (b) Conforming Amendments.— Section 293 of the Trade Act of 1974 (19 U.S.C. 2401b) is amended— (1) in subsection (a), by striking “section 292 (c) or (d), as the case may be,” and inserting “section 292(c)”; and (2) in subsection (c), by striking “decline in price for” and inserting “decrease in the national average price, quantity of production, or value of production of, or cash receipts for,”. SEC. 1883. BENEFITS. (a) In General.— Section 296 of the Trade Act of 1974 (19 U.S.C. 2401e) is amended to read as follows: “SEC. 296. QUALIFYING REQUIREMENTS AND BENEFITS FOR AGRICULTURAL COMMODITY PRODUCERS. “(a) In General.— “(1) Requirements.— “(A) In general.— Deadline. Benefits under this chapter shall be available to an agricultural commodity producer covered by a certification under this chapter who files an application for such benefits not later than 90 days after the date on which the Secretary makes a determination and issues a certification of eligibility under section 293, if the producer submits to the Secretary sufficient information to establish that— “(i) the producer produced the agricultural commodity covered by the application filed under this subsection in the marketing year with respect to which the petition is filed and in at least 1 of the 3 marketing years preceding that marketing year; “(ii) (I) the quantity of the agricultural commodity that was produced by the producer in the marketing year with respect to which the petition is filed has decreased compared to the most recent marketing year preceding that marketing year for which data are available; or “(II) (aa) the price received for the agricultural commodity by the producer during the marketing year with respect to which the petition is filed has decreased compared to the average price for the commodity received by the producer in the 3 marketing years preceding that marketing year; or “(bb) the county level price maintained by the Secretary for the agricultural commodity on the date on which the petition is filed has decreased compared to the average county level price for the commodity in the 3 marketing years preceding the date on which the petition is filed; and “(iii) the producer is not receiving— “(I) cash benefits under chapter 2 or 3; or “(II) benefits based on the production of an agricultural commodity covered by another petition filed under this chapter. “(B) Special rule with respect to crops not grown every year.— For purposes of subparagraph (A)(ii)(II)(aa), if a petition is filed with respect to an agricultural commodity that is not produced by the producer every year, an agricultural commodity producer producing that commodity may establish the average price received for the commodity by the producer in the 3 marketing years preceding the year with respect to which the petition is filed by using average price data for the 3 most recent marketing years in which the producer produced the commodity and for which data are available. “(2) Limitations based on adjusted gross income.— “(A) In general.— Notwithstanding any other provision of this chapter, an agricultural commodity producer shall not be eligible for assistance under this chapter in any year in which the average adjusted gross income (as defined in section 1001D(a) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(a))) of the producer exceeds the level set forth in subparagraph (A) or (B) of section 1001D(b)(1) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(b)(1)), whichever is applicable. “(B) Demonstration of compliance.— An agricultural commodity producer shall provide to the Secretary such information as the Secretary determines necessary to demonstrate that the producer is in compliance with the limitation under subparagraph (A). “(C) Counter-cyclical and acre payments.— The total amount of payments made to an agricultural commodity producer under this chapter during any crop year may not exceed the limitations on payments set forth in subsections (b)(2), (b)(3), (c)(2), and (c)(3) of section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308). “(b) Technical Assistance.— “(1) Initial technical assistance.— “(A) In general.— An agricultural commodity producer that files an application and meets the requirements under subsection (a)(1) shall be entitled to receive initial technical assistance designed to improve the competitiveness of the production and marketing of the agricultural commodity with respect to which the producer was certified under this chapter. Such assistance shall include information regarding— “(i) improving the yield and marketing of that agricultural commodity; and “(ii) the feasibility and desirability of substituting one or more alternative agricultural commodities for that agricultural commodity. “(B) Transportation and subsistence expenses.— “(i) In general.— The Secretary may authorize supplemental assistance necessary to defray reasonable transportation and subsistence expenses incurred by an agricultural commodity producer in connection with initial technical assistance under subparagraph (A) if such assistance is provided at facilities that are not within normal commuting distance of the regular place of residence of the producer. “(ii) Exceptions.— The Secretary may not authorize payments to an agricultural commodity producer under clause (i)— “(I) for subsistence expenses that exceed the lesser of— “(aa) the actual per diem expenses for subsistence incurred by the producer; or “(bb) the prevailing per diem allowance rate authorized under Federal travel regulations; or “(II) for travel expenses that exceed the prevailing mileage rate authorized under the Federal travel regulations. “(2) Intensive technical assistance.— A producer that has completed initial technical assistance under paragraph (1) shall be eligible to participate in intensive technical assistance. Such assistance shall consist of— “(A) a series of courses to further assist the producer in improving the competitiveness of the producer in producing— “(i) the agricultural commodity with respect to which the producer was certified under this chapter; or “(ii) another agricultural commodity; and “(B) assistance in developing an initial business plan based on the courses completed under subparagraph (A). “(3) Initial business plan.— “(A) Approval by secretary.— The Secretary shall approve an initial business plan developed under paragraph (2)(B) if the plan— “(i) reflects the skills gained by the producer through the courses described in paragraph (2)(A); and “(ii) demonstrates how the producer will apply those skills to the circumstances of the producer. “(B) Financial assistance for implementing initial business plan.— Upon approval of the producer’s initial business plan by the Secretary under subparagraph (A), a producer shall be entitled to an amount not to exceed $4,000 to— “(i) implement the initial business plan; or “(ii) develop a long-term business adjustment plan under paragraph (4). “(4) Long-term business adjustment plan.— “(A) In general.— A producer that has completed intensive technical assistance under paragraph (2) and whose initial business plan has been approved under paragraph (3)(A) shall be eligible for, in addition to the amount under subparagraph (C), assistance in developing a long-term business adjustment plan. “(B) Approval of long-term business adjustment plans.— The Secretary shall approve a long-term business adjustment plan developed under subparagraph (A) if the Secretary determines that the plan— “(i) includes steps reasonably calculated to materially contribute to the economic adjustment of the producer to changing market conditions; “(ii) takes into consideration the interests of the workers employed by the producer; and “(iii) demonstrates that the producer will have sufficient resources to implement the business plan. “(C) Plan implementation.— Upon approval of the producer’s long-term business adjustment plan under subparagraph (B), a producer shall be entitled to an amount not to exceed $8,000 to implement the long-term business adjustment plan. “(c) Maximum Amount of Assistance.— An agricultural commodity producer may receive not more than $12,000 under paragraphs (3) and (4) of subsection (b) in the 36-month period following certification under section 293. “(d) Limitations on Other Assistance.— An agricultural commodity producer that receives benefits under this chapter (other than initial technical assistance under subsection (b)(1)) shall not be eligible for cash benefits under chapter 2 or 3.” . (b) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by striking the item relating to section 296 and inserting the following: “Sec. 296.  Qualifying requirements and benefits for agricultural commodity producers.”. SEC. 1884. REPORT.   Section 293 of the Trade Act of 1974 (19 U.S.C. 2401b) is amended by adding at the end the following: “(d) Report by the Secretary.— Not later than January 30, 2010, and annually thereafter, the Secretary of Agriculture shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report containing the following information with respect to adjustment assistance provided under this chapter during the preceding fiscal year: “(1) A list of the agricultural commodities covered by a certification under this chapter. “(2) The States or regions in which such commodities are produced and the aggregate amount of such commodities produced in each such State or region. “(3) The total number of agricultural commodity producers, by congressional district, receiving benefits under this chapter. “(4) The total number of agricultural commodity producers, by congressional district, receiving technical assistance under this chapter.” . SEC. 1885. FRAUD AND RECOVERY OF OVERPAYMENTS.   Section 297(a)(1) of the Trade Act of 1974 (19 U.S.C. 2401f(a)(1)) is amended by inserting “or has expended funds received under this chapter for a purpose that was not approved by the Secretary,” after “entitled,”. SEC. 1886. DETERMINATION OF INCREASES OF IMPORTS FOR CERTAIN FISHERMEN.   For purposes of chapters 2 and 6 of title II of the Trade Act of 1974 (19 U.S.C. 2251 et seq.), in the case of an agricultural commodity producer that— (1) is a fisherman or aquaculture producer, and (2) is otherwise eligible for adjustment assistance under chapter 2 or 6, as the case may be, the increase in imports of articles like or directly competitive with the agricultural commodity produced by such producer may be based on imports of wild-caught seafood, farm-raised seafood, or both. SEC. 1887. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE FOR FARMERS.   Section 298(a) of the Trade Act of 1974 (19 U.S.C. 2401g(a)) is amended by striking “fiscal years 2003 through 2007” and all that follows through the end period and inserting “fiscal years 2009 and 2010, and $22,500,000 for the period beginning October 1, 2010, and ending December 31, 2010, to carry out the purposes of this chapter, including administrative costs, and salaries and expenses of employees of the Department of Agriculture.”. PART V— GENERAL PROVISIONS SEC. 1891. EFFECTIVE DATE. (a) In General.— Except as otherwise provided in this subtitle, and subsection (b) of this section, this subtitle and the amendments made by this subtitle— (1) shall take effect upon the expiration of the 90-day period beginning on the date of the enactment of this Act; and (2) Applicability. shall apply to— (A) petitions for certification filed under chapter 2, 3, or 6 of title II of the Trade Act of 1974 on or after the effective date described in paragraph (1); and (B) petitions for assistance and proposals for grants filed under chapter 4 of title II of the Trade Act of 1974 on or after such effective date. (b) Certifications Made Before Effective Date.— Notwithstanding subsection (a)— (1) a worker shall continue to receive (or be eligible to receive) trade adjustment assistance and other benefits under subchapter B of chapter 2 of title II of the Trade Act of 1974, as in effect on the day before the effective date described in subsection (a)(1), for any week for which the worker meets the eligibility requirements of such chapter 2 as in effect on the day before such effective date, if the worker— (A) is certified as eligible for trade adjustment assistance benefits under such chapter 2 pursuant to a petition filed under section 221 of the Trade Act of 1974 on or before such effective date; and (B) would otherwise be eligible to receive trade adjustment assistance benefits under such chapter as in effect on the day before such effective date; (2) a worker shall continue to receive (or be eligible to receive) benefits under section 246(a)(2) of the Trade Act of 1974, as in effect on the day before the effective date described in subsection (a)(1), for such period for which the worker meets the eligibility requirements of section 246 of that Act as in effect on the day before such effective date, if the worker— (A) is certified as eligible for benefits under such section 246 pursuant to a petition filed under section 221 of the Trade Act of 1974 on or before such effective date; and (B) would otherwise be eligible to receive benefits under such section 246(a)(2) as in effect on the day before such effective date; and (3) a firm shall continue to receive (or be eligible to receive) adjustment assistance under chapter 3 of title II of the Trade Act of 1974, as in effect on the day before the effective date described in subsection (a)(1), for such period for which the firm meets the eligibility requirements of such chapter 3 as in effect on the day before such effective date, if the firm— (A) is certified as eligible for benefits under such chapter 3 pursuant to a petition filed under section 251 of the Trade Act of 1974 on or before such effective date; and (B) would otherwise be eligible to receive benefits under such chapter 3 as in effect on the day before such effective date. SEC. 1892. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE PROGRAMS. (a) For Workers.— Section 245(a) of the Trade Act of 1974 (19 U.S.C. 2317(a)) is amended by striking “December 31, 2007” and inserting “December 31, 2010”. (b) Termination.— Section 285 of the Trade Act of 1974 (19 U.S.C. 2271 note prec.) is amended— (1) in subsection (a), by striking “December 31, 2007” each place it appears and inserting “December 31, 2010”; and (2) by amending subsection (b) to read as follows: “(b) Other Assistance.— “(1) Assistance for firms.— “(A) In general.— Except as provided in subparagraph (B), technical assistance and grants may not be provided under chapter 3 after December 31, 2010. “(B) Exception.— Notwithstanding subparagraph (A), any technical assistance or grant approved under chapter 3 on or before December 31, 2010, may be provided— “(i) to the extent funds are available pursuant to such chapter for such purpose; and “(ii) to the extent the recipient of the technical assistance or grant is otherwise eligible to receive such technical assistance or grant, as the case may be. “(2) Farmers.— “(A) In general.— Except as provided in subparagraph (B), technical assistance and financial assistance may not be provided under chapter 6 after December 31, 2010. “(B) Exception.— Notwithstanding subparagraph (A), any technical or financial assistance approved under chapter 6 on or before December 31, 2010, may be provided— “(i) to the extent funds are available pursuant to such chapter for such purpose; and “(ii) to the extent the recipient of the technical or financial assistance is otherwise eligible to receive such technical or financial assistance, as the case may be. “(3) Assistance for communities.— “(A) In general.— Except as provided in subparagraph (B), technical assistance and grants may not be provided under chapter 4 after December 31, 2010. “(B) Exception.— Notwithstanding subparagraph (A), any technical assistance or grant approved under chapter 4 on or before December 31, 2010, may be provided— “(i) to the extent funds are available pursuant to such chapter for such purpose; and “(ii) to the extent the recipient of the technical assistance or grant is otherwise eligible to receive such technical assistance or grant, as the case may be.” . SEC. 1893. TERMINATION; RELATED PROVISIONS. (a) Sunset.— (1) In general.— Subject to paragraph (2), the amendments made by this subtitle to chapters 2, 3, 4, 5, and 6 of title II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.) shall not apply on or after January 1, 2011. (2) Exception.— The amendments made by this subtitle to section 285 of the Trade Act of 1974 shall continue to apply on and after January 1, 2011, with respect to— (A) workers certified as eligible for trade adjustment assistance benefits under chapter 2 of title II of that Act pursuant to petitions filed under section 221 of that Act before January 1, 2011; (B) firms certified as eligible for technical assistance or grants under chapter 3 of title II of that Act pursuant to petitions filed under section 251 of that Act before January 1, 2011; (C) recipients approved for technical assistance or grants under chapter 4 of title II of that Act pursuant to petitions for assistance or proposals for grants (as the case may be) filed pursuant to such chapter before January 1, 2011; and (D) agricultural commodity producers certified as eligible for technical or financial assistance under chapter 6 of title II of that Act pursuant to petitions filed under section 292 of that Act before January 1, 2011. (b) Application of Prior Law.— Chapters 2, 3, 4, 5, and 6 of title II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.) shall be applied and administered beginning January 1, 2011, as if the amendments made by this subtitle (other than part VI) had never been enacted, except that in applying and administering such chapters— (1) section 245 of that Act shall be applied and administered by substituting “2011” for “2007”; (2) section 246(b) of that Act shall be applied and administered by substituting “December 31, 2011” for “the date that is 5 years” and all that follows through “State”; (3) section 256(b) of that Act shall be applied and administered by substituting “the 1-year period beginning January 1, 2011” for “each of fiscal years 2003 through 2007, and $4,000,000 for the 3-month period beginning October 1, 2007”; (4) section 298(a) of that Act shall be applied and administered by substituting “the 1-year period beginning January 1, 2011” for “each of the fiscal years” and all that follows through “October 1, 2007”; and (5) subject to subsection (a)(2), section 285 of that Act shall be applied and administered— (A) in subsection (a), by substituting “2011” for “2007” each place it appears; and (B) by applying and administering subsection (b) as if it read as follows: “(b) Other Assistance.— “(1) Assistance for firms.— “(A) In general.— Except as provided in subparagraph (B), assistance may not be provided under chapter 3 after December 31, 2011. “(B) Exception.— Notwithstanding subparagraph (A), any assistance approved under chapter 3 on or before December 31, 2011, may be provided— “(i) to the extent funds are available pursuant to such chapter for such purpose; and “(ii) to the extent the recipient of the assistance is otherwise eligible to receive such assistance. “(2) Farmers.— “(A) In general.— Except as provided in subparagraph (B), assistance may not be provided under chapter 6 after December 31, 2011. “(B) Exception.— Notwithstanding subparagraph (A), any assistance approved under chapter 6 on or before December 31, 2011, may be provided— “(i) to the extent funds are available pursuant to such chapter for such purpose; and “(ii) to the extent the recipient of the assistance is otherwise eligible to receive such assistance.” . SEC. 1894. GOVERNMENT ACCOUNTABILITY OFFICE REPORT.   Not later than September 30, 2012, the Comptroller General of the United States shall prepare and submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a comprehensive report on the operation and effectiveness of the amendments made by this subtitle to chapters 2, 3, 4, and 6 of the Trade Act of 1974. SEC. 1895. EMERGENCY DESIGNATION.   Amounts appropriated pursuant to this subtitle are designated as an emergency requirement and necessary to meet emergency needs pursuant to section 204(a) of S. Con. Res. 21 (110th Congress) and section 301(b)(2) of S. Con. Res. 70 (110th Congress), the concurrent resolutions on the budget for fiscal years 2008 and 2009. PART VI— HEALTH COVERAGE IMPROVEMENT SEC. 1899. SHORT TITLE.   This part may be cited as the “TAA Health Coverage Improvement Act of 2009”. SEC. 1899A. IMPROVEMENT OF THE AFFORDABILITY OF THE CREDIT. (a) Improvement of Affordability.— (1) In general.— Section 35(a) of the Internal Revenue Code of 1986 26 USC 35. (relating to credit for health insurance costs of eligible individuals) is amended by inserting “(80 percent in the case of eligible coverage months beginning before January 1, 2011)” after “65 percent”. (2) Conforming amendment.— Section 7527(b) of such Code 26 USC 7527. (relating to advance payment of credit for health insurance costs of eligible individuals) is amended by inserting “(80 percent in the case of eligible coverage months beginning before January 1, 2011)” after “65 percent”. (b) Effective Date.— The amendments made by this section shall apply to coverage months beginning on or after the first day of the first month beginning 60 days after the date of the enactment of this Act. SEC. 1899B. PAYMENT FOR MONTHLY PREMIUMS PAID PRIOR TO COMMENCEMENT OF ADVANCE PAYMENTS OF CREDIT. (a) Payment for Premiums Due Prior to Commencement of Advance Payments of Credit.— Section 7527 of the Internal Revenue Code of 1986 (relating to advance payment of credit for health insurance costs of eligible individuals) is amended by adding at the end the following new subsection: “(e) Payment for Premiums Due Prior to Commencement of Advance Payments.— In the case of eligible coverage months beginning before January 1, 2011— “(1) In general.— The program established under subsection (a) shall provide that the Secretary shall make 1 or more retroactive payments on behalf of a certified individual in an aggregate amount equal to 80 percent of the premiums for coverage of the taxpayer and qualifying family members under qualified health insurance for eligible coverage months (as defined in section 35(b)) occurring prior to the first month for which an advance payment is made on behalf of such individual under subsection (a). “(2) Reduction of payment for amounts received under national emergency grants.— The amount of any payment determined under paragraph (1) shall be reduced by the amount of any payment made to the taxpayer for the purchase of qualified health insurance under a national emergency grant pursuant to section 173(f) of the Workforce Investment Act of 1998 for a taxable year including the eligible coverage months described in paragraph (1).” . (b) Effective Date.— The amendments made by this section shall apply to coverage months beginning after December 31, 2008. (c) Transitional Rule.— The Secretary of the Treasury shall not be required to make any payments under section 7527(e) of the Internal Revenue Code of 1986, as added by this section, until after the date that is 6 months after the date of the enactment of this Act. SEC. 1899C. TAA RECIPIENTS NOT ENROLLED IN TRAINING PROGRAMS ELIGIBLE FOR CREDIT. (a) In General.— Paragraph (2) of section 35(c) of the Internal Revenue Code of 1986 (defining eligible TAA recipient) is amended to read as follows: “(2) Eligible taa recipient.— “(A) In general.— Except as provided in subparagraph (B), the term ‘eligible TAA recipient’ means, with respect to any month, any individual who is receiving for any day of such month a trade readjustment allowance under chapter 2 of title II of the Trade Act of 1974 or who would be eligible to receive such allowance if section 231 of such Act were applied without regard to subsection (a)(3)(B) of such section. An individual shall continue to be treated as an eligible TAA recipient during the first month that such individual would otherwise cease to be an eligible TAA recipient by reason of the preceding sentence. “(B) Special rule.— In the case of any eligible coverage month beginning after the date of the enactment of this paragraph and before January 1, 2011, the term ‘eligible TAA recipient’ means, with respect to any month, any individual who— “(i) is receiving for any day of such month a trade readjustment allowance under chapter 2 of title II of the Trade Act of 1974, “(ii) would be eligible to receive such allowance except that such individual is in a break in training provided under a training program approved under section 236 of such Act that exceeds the period specified in section 233(e) of such Act, but is within the period for receiving such allowances provided under section 233(a) of such Act, or “(iii) is receiving unemployment compensation (as defined in section 85(b)) for any day of such month and who would be eligible to receive such allowance for such month if section 231 of such Act were applied without regard to subsections (a)(3)(B) and (a)(5) thereof. An individual shall continue to be treated as an eligible TAA recipient during the first month that such individual would otherwise cease to be an eligible TAA recipient by reason of the preceding sentence.” . (b) Effective Date.— The amendment made by this section shall apply to coverage months beginning after the date of the enactment of this Act. SEC. 1899D. TAA PRE-CERTIFICATION PERIOD RULE FOR PURPOSES OF DETERMINING WHETHER THERE IS A 63-DAY LAPSE IN CREDITABLE COVERAGE. (a) IRC Amendment.— Section 9801(c)(2) of the Internal Revenue Code of 1986 26 USC 9801. (relating to not counting periods before significant breaks in creditable coverage) is amended by adding at the end the following new subparagraph: “(D) TAA-eligible individuals.— In the case of plan years beginning before January 1, 2011— “(i) TAA pre-certification period rule.— In the case of a TAA-eligible individual, the period beginning on the date the individual has a TAA-related loss of coverage and ending on the date which is 7 days after the date of the issuance by the Secretary (or by any person or entity designated by the Secretary) of a qualified health insurance costs credit eligibility certificate for such individual for purposes of section 7527 shall not be taken into account in determining the continuous period under subparagraph (A). “(ii) Definitions.— The terms ‘TAA-eligible individual’ and ‘TAA-related loss of coverage’ have the meanings given such terms in section 4980B(f)(5)(C)(iv).” . (b) ERISA Amendment.— Section 701(c)(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1181(c)(2)) is amended by adding at the end the following new subparagraph: “(C) TAA-eligible individuals.— In the case of plan years beginning before January 1, 2011— “(i) TAA pre-certification period rule.— In the case of a TAA-eligible individual, the period beginning on the date the individual has a TAA-related loss of coverage and ending on the date that is 7 days after the date of the issuance by the Secretary (or by any person or entity designated by the Secretary) of a qualified health insurance costs credit eligibility certificate for such individual for purposes of section 7527 of the Internal Revenue Code of 1986 shall not be taken into account in determining the continuous period under subparagraph (A). “(ii) Definitions.— The terms ‘TAA-eligible individual’ and ‘TAA-related loss of coverage’ have the meanings given such terms in section 605(b)(4).” . (c) PHSA Amendment.— Section 2701(c)(2) of the Public Health Service Act (42 U.S.C. 300gg(c)(2)) is amended by adding at the end the following new subparagraph: “(C) TAA-eligible individuals.— In the case of plan years beginning before January 1, 2011— “(i) TAA pre-certification period rule.— In the case of a TAA-eligible individual, the period beginning on the date the individual has a TAA-related loss of coverage and ending on the date that is 7 days after the date of the issuance by the Secretary (or by any person or entity designated by the Secretary) of a qualified health insurance costs credit eligibility certificate for such individual for purposes of section 7527 of the Internal Revenue Code of 1986 shall not be taken into account in determining the continuous period under subparagraph (A). “(ii) Definitions.— The terms ‘TAA-eligible individual’ and ‘TAA-related loss of coverage’ have the meanings given such terms in section 2205(b)(4).” . (d) Effective Date.— The amendments made by this section shall apply to plan years beginning after the date of the enactment of this Act. SEC. 1899E. CONTINUED QUALIFICATION OF FAMILY MEMBERS AFTER CERTAIN EVENTS. (a) In General.— Subsection (g) of section 35 26 USC 35. of such Code is amended by redesignating paragraph (9) as paragraph (10) and inserting after paragraph (8) the following new paragraph: “(9) Continued qualification of family members after certain events.— In the case of eligible coverage months beginning before January 1, 2011— “(A) Medicare eligibility.— In the case of any month which would be an eligible coverage month with respect to an eligible individual but for subsection (f)(2)(A), such month shall be treated as an eligible coverage month with respect to such eligible individual solely for purposes of determining the amount of the credit under this section with respect to any qualifying family members of such individual (and any advance payment of such credit under section 7527). This subparagraph shall only apply with respect to the first 24 months after such eligible individual is first entitled to the benefits described in subsection (f)(2)(A). “(B) Divorce.— In the case of the finalization of a divorce between an eligible individual and such individual’s spouse, such spouse shall be treated as an eligible individual for purposes of this section and section 7527 for a period of 24 months beginning with the date of such finalization, except that the only qualifying family members who may be taken into account with respect to such spouse are those individuals who were qualifying family members immediately before such finalization. “(C) Death.— In the case of the death of an eligible individual— “(i) any spouse of such individual (determined at the time of such death) shall be treated as an eligible individual for purposes of this section and section 7527 for a period of 24 months beginning with the date of such death, except that the only qualifying family members who may be taken into account with respect to such spouse are those individuals who were qualifying family members immediately before such death, and “(ii) any individual who was a qualifying family member of the decedent immediately before such death (or, in the case of an individual to whom paragraph (4) applies, the taxpayer to whom the deduction under section 151 is allowable) shall be treated as an eligible individual for purposes of this section and section 7527 for a period of 24 months beginning with the date of such death, except that in determining the amount of such credit only such qualifying family member may be taken into account.” . (b) Conforming Amendment.— Section 173(f) of the Workforce Investment Act of 1998 (29 U.S.C. 2918(f)) is amended by adding at the end the following: “(8) Continued qualification of family members after certain events.— In the case of eligible coverage months beginning before January 1, 2011— “(A) Medicare eligibility.— In the case of any month which would be an eligible coverage month with respect to an eligible individual but for paragraph (7)(B)(i), such month shall be treated as an eligible coverage month with respect to such eligible individual solely for purposes of determining the eligibility of qualifying family members of such individual under this subsection. Applicability. This subparagraph shall only apply with respect to the first 24 months after such eligible individual is first entitled to the benefits described in paragraph (7)(B)(i). “(B) Divorce.— In the case of the finalization of a divorce between an eligible individual and such individual’s spouse, such spouse shall be treated as an eligible individual for purposes of this subsection for a period of 24 months beginning with the date of such finalization, except that the only qualifying family members who may be taken into account with respect to such spouse are those individuals who were qualifying family members immediately before such finalization. “(C) Death.— In the case of the death of an eligible individual— “(i) any spouse of such individual (determined at the time of such death) shall be treated as an eligible individual for purposes of this subsection for a period of 24 months beginning with the date of such death, except that the only qualifying family members who may be taken into account with respect to such spouse are those individuals who were qualifying family members immediately before such death, and “(ii) any individual who was a qualifying family member of the decedent immediately before such death shall be treated as an eligible individual for purposes this subsection for a period of 24 months beginning with the date of such death, except that no qualifying family members may be taken into account with respect to such individual.” . (c) Effective Date.— The amendments made by this section shall apply to months beginning after December 31, 2009. SEC. 1899F. EXTENSION OF COBRA BENEFITS FOR CERTAIN TAA-ELIGIBLE INDIVIDUALS AND PBGC RECIPIENTS. (a) ERISA Amendments.— Section 602(2)(A) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1162(2)(A)) is amended— (1) by moving clause (v) to after clause (iv) and before the flush left sentence beginning with “In the case of a qualified beneficiary”; (2) by striking “In the case of a qualified beneficiary” and inserting the following: “(vi) Special rule for disability.— In the case of a qualified beneficiary” ; and (3) by redesignating clauses (v) and (vi), as amended by paragraphs (1) and (2), as clauses (vii) and (viii), respectively, and by inserting after clause (iv) the following new clauses: “(v) Special rule for pbgc recipients.— In the case of a qualifying event described in section 603(2) with respect to a covered employee who (as of such qualifying event) has a nonforfeitable right to a benefit any portion of which is to be paid by the Pension Benefit Guaranty Corporation under title IV, notwithstanding clause (i) or (ii), the date of the death of the covered employee, or in the case of the surviving spouse or dependent children of the covered employee, 24 months after the date of the death of the covered employee. The preceding sentence shall not require any period of coverage to extend beyond December 31, 2010. “(vi) Special rule for taa-eligible individuals.— In the case of a qualifying event described in section 603(2) with respect to a covered employee who is (as of the date that the period of coverage would, but for this clause or clause (vii), otherwise terminate under clause (i) or (ii)) a TAA-eligible individual (as defined in section 605(b)(4)(B)), the period of coverage shall not terminate by reason of clause (i) or (ii), as the case may be, before the later of the date specified in such clause or the date on which such individual ceases to be such a TAA-eligible individual. The preceding sentence shall not require any period of coverage to extend beyond December 31, 2010.” . (b) IRC Amendments.— Clause (i) of section 4980B(f)(2)(B) of the Internal Revenue Code of 1986 26 USC 4980B. is amended— (1) by striking “In the case of a qualified beneficiary” and inserting the following: “(VI) Special rule for disability.— In the case of a qualified beneficiary” , and (2) by redesignating subclauses (V) and (VI), as amended by paragraph (1), as subclauses (VII) and (VIII), respectively, and by inserting after clause (IV) the following new subclauses: “(V) Special rule for pbgc recipients.— In the case of a qualifying event described in paragraph (3)(B) with respect to a covered employee who (as of such qualifying event) has a nonforfeitable right to a benefit any portion of which is to be paid by the Pension Benefit Guaranty Corporation under title IV of the Employee Retirement Income Security Act of 1974, notwithstanding subclause (I) or (II), the date of the death of the covered employee, or in the case of the surviving spouse or dependent children of the covered employee, 24 months after the date of the death of the covered employee. The preceding sentence shall not require any period of coverage to extend beyond December 31, 2010. “(VI) Special rule for taa-eligible individuals.— In the case of a qualifying event described in paragraph (3)(B) with respect to a covered employee who is (as of the date that the period of coverage would, but for this subclause or subclause (VII), otherwise terminate under subclause (I) or (II)) a TAA-eligible individual (as defined in paragraph (5)(C)(iv)(II)), the period of coverage shall not terminate by reason of subclause (I) or (II), as the case may be, before the later of the date specified in such subclause or the date on which such individual ceases to be such a TAA-eligible individual. The preceding sentence shall not require any period of coverage to extend beyond December 31, 2010.” . (c) PHSA Amendments.— Section 2202(2)(A) of the Public Health Service Act (42 U.S.C. 300bb-2(2)(A)) is amended— (1) by striking “In the case of a qualified beneficiary” and inserting the following: “(v) Special rule for disability.— In the case of a qualified beneficiary” ; and (2) by redesignating clauses (iv) and (v), as amended by paragraph (1), as clauses (v) and (vi), respectively, and by inserting after clause (iii) the following new clause: “(iv) Special rule for taa-eligible individuals.— In the case of a qualifying event described in section 2203(2) with respect to a covered employee who is (as of the date that the period of coverage would, but for this clause or clause (v), otherwise terminate under clause (i) or (ii)) a TAA-eligible individual (as defined in section 2205(b)(4)(B)), the period of coverage shall not terminate by reason of clause (i) or (ii), as the case may be, before the later of the date specified in such clause or the date on which such individual ceases to be such a TAA-eligible individual. The preceding sentence shall not require any period of coverage to extend beyond December 31, 2010.” . (d) Effective Date.— The amendments made by this section shall apply to periods of coverage which would (without regard to the amendments made by this section) end on or after the date of the enactment of this Act. SEC. 1899G. ADDITION OF COVERAGE THROUGH VOLUNTARY EMPLOYEES’ BENEFICIARY ASSOCIATIONS. (a) In General.— Paragraph (1) of section 35(e) of the Internal Revenue Code of 1986 26 USC 35. is amended by adding at the end the following new subparagraph: “(K) In the case of eligible coverage months beginning before January 1, 2011, coverage under an employee benefit plan funded by a voluntary employees’ beneficiary association (as defined in section 501(c)(9)) established pursuant to an order of a bankruptcy court, or by agreement with an authorized representative, as provided in section 1114 of title 11, United States Code.” . (b) Effective Date.— The amendments made by this section shall apply to coverage months beginning after the date of the enactment of this Act. SEC. 1899H. NOTICE REQUIREMENTS. (a) In General.— Subsection (d) of section 7527 of the Internal Revenue Code of 1986 (relating to qualified health insurance costs credit eligibility certificate) is amended to read as follows: “(d) Qualified Health Insurance Costs Eligibility Certificate.— “(1) In general.— For purposes of this section, the term ‘qualified health insurance costs eligibility certificate’ means any written statement that an individual is an eligible individual (as defined in section 35(c)) if such statement provides such information as the Secretary may require for purposes of this section and— “(A) in the case of an eligible TAA recipient (as defined in section 35(c)(2)) or an eligible alternative TAA recipient (as defined in section 35(c)(3)), is certified by the Secretary of Labor (or by any other person or entity designated by the Secretary), or “(B) in the case of an eligible PBGC pension recipient (as defined in section 35(c)(4)), is certified by the Pension Benefit Guaranty Corporation (or by any other person or entity designated by the Secretary). “(2) Inclusion of certain information.— In the case of any statement described in paragraph (1) which is issued before January 1, 2011, such statement shall not be treated as a qualified health insurance costs credit eligibility certificate unless such statement includes— “(A) the name, address, and telephone number of the State office or offices responsible for providing the individual with assistance with enrollment in qualified health insurance (as defined in section 35(e)), “(B) a list of the coverage options that are treated as qualified health insurance (as so defined) by the State in which the individual resides, and “(C) in the case of a TAA-eligible individual (as defined in section 4980B(f)(5)(C)(iv)(II)), a statement informing the individual that the individual has 63 days from the date that is 7 days after the date of the issuance of such certificate to enroll in such insurance without a lapse in creditable coverage (as defined in section 9801(c)).” . (b) Effective Date.— The amendment made by this section shall apply to certificates issued after the date that is 6 months after the date of the enactment of this Act. SEC. 1899I. SURVEY AND REPORT ON ENHANCED HEALTH COVERAGE TAX CREDIT PROGRAM. (a) Survey.— (1) In general.— The Secretary of the Treasury shall conduct a biennial survey of eligible individuals (as defined in section 35(c) of the Internal Revenue Code of 1986) relating to the health coverage tax credit under section 35 of the Internal Revenue Code of 1986 (hereinafter in this section referred to as the “health coverage tax credit”). (2) Information obtained.— The survey conducted under subsection (a) shall obtain the following information: (A) HCTC participants.— In the case of eligible individuals receiving the health coverage tax credit (including individuals participating in the health coverage tax credit program under section 7527 of such Code, hereinafter in this section referred to as the “HCTC program”)— (i) demographic information of such individuals, including income and education levels, (ii) satisfaction of such individuals with the enrollment process in the HCTC program, (iii) satisfaction of such individuals with available health coverage options under the credit, including level of premiums, benefits, deductibles, cost-sharing requirements, and the adequacy of provider networks, and (iv) any other information that the Secretary determines is appropriate. (B) Non-HCTC participants.— In the case of eligible individuals not receiving the health coverage tax credit— (i) demographic information of each individual, including income and education levels, (ii) whether the individual was aware of the health coverage tax credit or the HCTC program, (iii) the reasons the individual has not enrolled in the HCTC program, including whether such reasons include the burden of the process of enrollment and the affordability of coverage, (iv) whether the individual has health insurance coverage, and, if so, the source of such coverage, and (v) any other information that the Secretary determines is appropriate. (3) Report.— Not later than December 31 of each year in which a survey is conducted under paragraph (1) (beginning in 2010), the Secretary of the Treasury shall report to the Committee on Finance and the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Ways and Means, the Committee on Education and Labor, and the Committee on Energy and Commerce of the House of Representatives the findings of the most recent survey conducted under paragraph (1). (b) Report.— Not later than October 1 of each year (beginning in 2010), the Secretary of the Treasury (after consultation with the Secretary of Health and Human Services, and, in the case of the information required under paragraph (7), the Secretary of Labor) shall report to the Committee on Finance and the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Ways and Means, the Committee on Education and Labor, and the Committee on Energy and Commerce of the House of Representatives the following information with respect to the most recent taxable year ending before such date: (1) In each State and nationally— (A) the total number of eligible individuals (as defined in section 35(c) of the Internal Revenue Code of 1986) and the number of eligible individuals receiving the health coverage tax credit, (B) the total number of such eligible individuals who receive an advance payment of the health coverage tax credit through the HCTC program, (C) the average length of the time period of the participation of eligible individuals in the HCTC program, and (D) the total number of participating eligible individuals in the HCTC program who are enrolled in each category of coverage as described in section 35(e)(1) of such Code, with respect to each category of eligible individuals described in section 35(c)(1) of such Code. (2) In each State and nationally, an analysis of— (A) the range of monthly health insurance premiums, for self-only coverage and for family coverage, for individuals receiving the health coverage tax credit, and (B) the average and median monthly health insurance premiums, for self-only coverage and for family coverage, for individuals receiving the health coverage tax credit, with respect to each category of coverage as described in section 35(e)(1) of such Code. (3) In each State and nationally, an analysis of the following information with respect to the health insurance coverage of individuals receiving the health coverage tax credit who are enrolled in coverage described in subparagraphs (B) through (H) of section 35(e)(1) of such Code: (A) Deductible amounts. (B) Other out-of-pocket cost-sharing amounts. (C) A description of any annual or lifetime limits on coverage or any other significant limits on coverage services, or benefits. The information required under this paragraph shall be reported with respect to each category of coverage described in such subparagraphs. (4) In each State and nationally, the gender and average age of eligible individuals (as defined in section 35(c) of such Code) who receive the health coverage tax credit, in each category of coverage described in section 35(e)(1) of such Code, with respect to each category of eligible individuals described in such section. (5) The steps taken by the Secretary of the Treasury to increase the participation rates in the HCTC program among eligible individuals, including outreach and enrollment activities. (6) The cost of administering the HCTC program by function, including the cost of subcontractors, and recommendations on ways to reduce administrative costs, including recommended statutory changes. (7) The number of States applying for and receiving national emergency grants under section 173(f) of the Workforce Investment Act of 1998 (29 U.S.C. 2918(f)), the activities funded by such grants on a State-by-State basis, and the time necessary for application approval of such grants. SEC. 1899J. AUTHORIZATION OF APPROPRIATIONS.   There is authorized to be appropriated $80,000,000 for the period of fiscal years 2009 through 2010 to implement the amendments made by, and the provisions of, sections 1899 through 1899I of this part. SEC. 1899K. EXTENSION OF NATIONAL EMERGENCY GRANTS. (a) In General.— Section 173(f) of the Workforce Investment Act of 1998 (29 U.S.C. 2918(f)), as amended by this Act, is amended— (1) by striking paragraph (1) and inserting the following new paragraph: “(1) Use of funds.— “(A) Health insurance coverage for eligible individuals in order to obtain qualified health insurance that has guaranteed issue and other consumer protections.— Funds made available to a State or entity under paragraph (4)(A) of subsection (a) may be used to provide an eligible individual described in paragraph (4)(C) and such individual’s qualifying family members with health insurance coverage for the 3-month period that immediately precedes the first eligible coverage month (as defined in section 35(b) of the Internal Revenue Code of 1986) in which such eligible individual and such individual’s qualifying family members are covered by qualified health insurance that meets the requirements described in clauses (i) through (v) of section 35(e)(2)(A) of the Internal Revenue Code of 1986 (or such longer minimum period as is necessary in order for such eligible individual and such individual’s qualifying family members to be covered by qualified health insurance that meets such requirements). “(B) Additional uses.— Funds made available to a State or entity under paragraph (4)(A) of subsection (a) may be used by the State or entity for the following: “(i) Health insurance coverage.— To assist an eligible individual and such individual’s qualifying family members with enrolling in health insurance coverage and qualified health insurance or paying premiums for such coverage or insurance. “(ii) Administrative expenses and start-up expenses to establish group health plan coverage options for qualified health insurance.— To pay the administrative expenses related to the enrollment of eligible individuals and such individuals’ qualifying family members in health insurance coverage and qualified health insurance, including— “(I) eligibility verification activities; “(II) the notification of eligible individuals of available health insurance and qualified health insurance options; “(III) processing qualified health insurance costs credit eligibility certificates provided for under section 7527 of the Internal Revenue Code of 1986; “(IV) providing assistance to eligible individuals in enrolling in health insurance coverage and qualified health insurance; “(V) the development or installation of necessary data management systems; and “(VI) any other expenses determined appropriate by the Secretary, including start-up costs and on going administrative expenses, in order for the State to treat the coverage described in subparagraphs (C) through (H) of section 35(e)(1) of the Internal Revenue Code of 1986 as qualified health insurance under that section. “(iii) Outreach.— To pay for outreach to eligible individuals to inform such individuals of available health insurance and qualified health insurance options, including outreach consisting of notice to eligible individuals of such options made available after the date of enactment of this clause and direct assistance to help potentially eligible individuals and such individual’s qualifying family members qualify and remain eligible for the credit established under section 35 of the Internal Revenue Code of 1986 and advance payment of such credit under section 7527 of such Code. “(iv) Bridge funding.— To assist potentially eligible individuals to purchase qualified health insurance coverage prior to issuance of a qualified health insurance costs credit eligibility certificate under section 7527 of the Internal Revenue Code of 1986 and commencement of advance payment, and receipt of expedited payment, under subsections (a) and (e), respectively, of that section. “(C) Rule of construction.— The inclusion of a permitted use under this paragraph shall not be construed as prohibiting a similar use of funds permitted under subsection (g).” ; and (2) by striking paragraph (2) and inserting the following new paragraph: “(2) Qualified health insurance.— For purposes of this subsection and subsection (g), the term ‘qualified health insurance’ has the meaning given that term in section 35(e) of the Internal Revenue Code of 1986.” . (b) Funding.— Section 174(c)(1) of the Workforce Investment Act of 1998 (29 U.S.C. 2919(c)(1)) is amended— (1) in the paragraph heading, by striking “Authorization and appropriation for fiscal year 2002” and inserting “Appropriations”; and (2) by striking subparagraph (A) and inserting the following new subparagraph: “(A) to carry out subsection (a)(4)(A) of section 173— “(i) $10,000,000 for fiscal year 2002; and “(ii) $150,000,000 for the period of fiscal years 2009 through 2010; and” . SEC. 1899L. GAO STUDY AND REPORT. (a) Study.— The Comptroller General of the United States shall conduct a study regarding the health insurance tax credit allowed under section 35 of the Internal Revenue Code of 1986. (b) Report.— Not later than March 1, 2010, the Comptroller General shall submit a report to Congress regarding the results of the study conducted under subsection (a). Such report shall include an analysis of— (1) the administrative costs— (A) of the Federal Government with respect to such credit and the advance payment of such credit under section 7527 of such Code, and (B) of providers of qualified health insurance with respect to providing such insurance to eligible individuals and their qualifying family members, (2) the health status and relative risk status of eligible individuals and qualifying family members covered under such insurance, (3) participation in such credit and the advance payment of such credit by eligible individuals and their qualifying family members, including the reasons why such individuals did or did not participate and the effect of the amendments made by this part on such participation, and (4) the extent to which eligible individuals and their qualifying family members— (A) obtained health insurance other than qualifying health insurance, or (B) went without health insurance coverage. (c) Access to Records.— For purposes of conducting the study required under this section, the Comptroller General and any of his duly authorized representatives shall have access to, and the right to examine and copy, all documents, records, and other recorded information— (1) within the possession or control of providers of qualified health insurance, and (2) determined by the Comptroller General (or any such representative) to be relevant to the study. The Comptroller General shall not disclose the identity of any provider of qualified health insurance or any eligible individual in making any information obtained under this section available to the public. (d) Definitions.— Any term which is defined in section 35 of the Internal Revenue Code of 1986 shall have the same meaning when used in this section.

   Effective date note
   Except as otherwise provided and subject to certain applicability provisions, amendment by Pub. L. 111–5 effective upon the expiration of the 90-day period beginning on Feb. 17, 2009, see section 1891 of Pub. L. 111–5, set out as a note under section 2271 of this title. Section 1893 of Pub. L. 111–5, formerly set out as a Termination Date of 2009 Amendment note preceding section 2271 of this title, which provided that, except as otherwise provided, amendment by Pub. L. 111–5 not applicable on or after Feb. 13, 2011, and that this section be applied and administered beginning Feb. 13, 2011, as if amendment by Pub. L. 111–5 had never been enacted, was repealed by Pub. L. 112–40, title II, § 201(a), Oct. 21, 2011, 125 Stat. 403, effective Oct. 21, 2011. See Codification note above.

5. 2009

   American Recovery and Reinvestment Act of 2009

   Pub. L. 111–5 div. B title I · 123 Stat. 115

   1. Substituted · 19 U.S.C. § 2273(c)

      Pub. L. 111–5, §§ 1803(2), 1858(a), 1893, temporarily substituted “a determination” for “his determination” . See Codification note above and Effective and Termination Dates of 2009 Amendment note below

   2. Substituted · 19 U.S.C. § 2273(c)

      Pub. L. 111–5, §§ 1803(2), 1858(a), 1893, temporarily substituted “and on the website of the Department of Labor, together with the Secretary’s reasons” for “together with his reasons” . See Codification note above and Effective and Termination Dates of 2009 Amendment note below

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 111–5, §§ 1803(2), 1858(a), 1893, temporarily substituted “a determination” for “his determination” and “and on the website of the Department of Labor, together with the Secretary’s reasons” for “together with his reasons”. See Codification note above and Effective and Termination Dates of 2009 Amendment note below.

   Enacted provision · exact public law
   TITLE I— TAX PROVISIONS SEC. 1000. SHORT TITLE, ETC. (a) Short Title.— This 26 USC 1 note. title may be cited as the “American Recovery and Reinvestment Tax Act of 2009”. (b) Reference.— Except 26 USC 1 et seq. as otherwise expressly provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. (c) Table of Contents.— The table of contents for this title is as follows: TITLE I— TAX PROVISIONS Sec. 1000.  Short title, etc. Subtitle A— Tax Relief for Individuals and Families PART I— General Tax Relief Sec. 1001.  Making work pay credit. Sec. 1002.  Temporary increase in earned income tax credit. Sec. 1003.  Temporary increase of refundable portion of child credit. Sec. 1004.  American opportunity tax credit. Sec. 1005.  Computer technology and equipment allowed as a qualified higher education expense for section 529 accounts in 2009 and 2010. Sec. 1006.  Extension of and increase in first-time homebuyer credit; waiver of requirement to repay. Sec. 1007.  Suspension of tax on portion of unemployment compensation. Sec. 1008.  Additional deduction for State sales tax and excise tax on the purchase of certain motor vehicles. PART II— Alternative Minimum Tax Relief Sec. 1011.  Extension of alternative minimum tax relief for nonrefundable personal credits. Sec. 1012.  Extension of increased alternative minimum tax exemption amount. Subtitle B— Energy Incentives PART I— Renewable Energy Incentives Sec. 1101.  Extension of credit for electricity produced from certain renewable resources. Sec. 1102.  Election of investment credit in lieu of production credit. Sec. 1103.  Repeal of certain limitations on credit for renewable energy property. Sec. 1104.  Coordination with renewable energy grants. PART II— Increased Allocations of New Clean Renewable Energy Bonds and Qualified Energy Conservation Bonds Sec. 1111.  Increased limitation on issuance of new clean renewable energy bonds. Sec. 1112.  Increased limitation on issuance of qualified energy conservation bonds. PART III— Energy Conservation Incentives Sec. 1121.  Extension and modification of credit for nonbusiness energy property. Sec. 1122.  Modification of credit for residential energy efficient property. Sec. 1123.  Temporary increase in credit for alternative fuel vehicle refueling property. PART IV— Modification of Credit for Carbon Dioxide Sequestration Sec. 1131.  Application of monitoring requirements to carbon dioxide used as a tertiary injectant. PART V— Plug-in Electric Drive Motor Vehicles Sec. 1141.  Credit for new qualified plug-in electric drive motor vehicles. Sec. 1142.  Credit for certain plug-in electric vehicles. Sec. 1143.  Conversion kits. Sec. 1144.  Treatment of alternative motor vehicle credit as a personal credit allowed against AMT. PART VI— Parity for Transportation Fringe Benefits Sec. 1151.  Increased exclusion amount for commuter transit benefits and transit passes. Subtitle C— Tax Incentives for Business PART I— Temporary Investment Incentives Sec. 1201.  Special allowance for certain property acquired during 2009. Sec. 1202.  Temporary increase in limitations on expensing of certain depreciable business assets. PART II— Small Business Provisions Sec. 1211.  5-year carryback of operating losses of small businesses. Sec. 1212.  Decreased required estimated tax payments in 2009 for certain small businesses. PART III— Incentives for New Jobs Sec. 1221.  Incentives to hire unemployed veterans and disconnected youth. PART IV— Rules Relating to Debt Instruments Sec. 1231.  Deferral and ratable inclusion of income arising from business indebtedness discharged by the reacquisition of a debt instrument. Sec. 1232.  Modifications of rules for original issue discount on certain high yield obligations. PART V— Qualified Small Business Stock Sec. 1241.  Special rules applicable to qualified small business stock for 2009 and 2010. PART VI— S Corporations Sec. 1251.  Temporary reduction in recognition period for built-in gains tax. PART VII— Rules Relating to Ownership Changes Sec. 1261.  Clarification of regulations related to limitations on certain built-in losses following an ownership change. Sec. 1262.  Treatment of certain ownership changes for purposes of limitations on net operating loss carryforwards and certain built-in losses. Subtitle D— Manufacturing Recovery Provisions Sec. 1301.  Temporary expansion of availability of industrial development bonds to facilities manufacturing intangible property. Sec. 1302.  Credit for investment in advanced energy facilities. Subtitle E— Economic Recovery Tools Sec. 1401.  Recovery zone bonds. Sec. 1402.  Tribal economic development bonds. Sec. 1403.  Increase in new markets tax credit. Sec. 1404.  Coordination of low-income housing credit and low-income housing grants. Subtitle F— Infrastructure Financing Tools PART I— Improved Marketability for Tax-Exempt Bonds Sec. 1501.  De minimis safe harbor exception for tax-exempt interest expense of financial institutions. Sec. 1502.  Modification of small issuer exception to tax-exempt interest expense allocation rules for financial institutions. Sec. 1503.  Temporary modification of alternative minimum tax limitations on tax-exempt bonds. Sec. 1504.  Modification to high speed intercity rail facility bonds. PART II— Delay in Application of Withholding Tax on Government Contractors Sec. 1511.  Delay in application of withholding tax on government contractors. PART III— Tax Credit Bonds for Schools Sec. 1521.  Qualified school construction bonds. Sec. 1522.  Extension and expansion of qualified zone academy bonds. PART IV— Build America Bonds Sec. 1531.  Build America bonds. PART V— Regulated Investment Companies Allowed to Pass-Thru Tax Credit Bond Credits Sec. 1541.  Regulated investment companies allowed to pass-thru tax credit bond credits. Subtitle G— Other Provisions Sec. 1601.  Application of certain labor standards to projects financed with certain tax-favored bonds. Sec. 1602.  Grants to States for low-income housing projects in lieu of low-income housing credit allocations for 2009. Sec. 1603.  Grants for specified energy property in lieu of tax credits. Sec. 1604.  Increase in public debt limit. Subtitle H— Prohibition on Collection of Certain Payments Made Under the Continued Dumping and Subsidy Offset Act of 2000 Sec. 1701.  Prohibition on collection of certain payments made under the Continued Dumping and Subsidy Offset Act of 2000. Subtitle I— Trade Adjustment Assistance Sec. 1800.  Short title. PART I— Trade Adjustment Assistance for Workers subpart a— trade adjustment assistance for service sector workers Sec. 1801.  Extension of trade adjustment assistance to service sector and public agency workers; shifts in production. Sec. 1802.  Separate basis for certification. Sec. 1803.  Determinations by Secretary of Labor. Sec. 1804.  Monitoring and reporting relating to service sector. subpart b— industry notifications following certain affirmative determinations Sec. 1811.  Notifications following certain affirmative determinations. Sec. 1812.  Notification to Secretary of Commerce. subpart c— program benefits Sec. 1821.  Qualifying Requirements for Workers. Sec. 1822.  Weekly amounts. Sec. 1823.  Limitations on trade readjustment allowances; allowances for extended training and breaks in training. Sec. 1824.  Special rules for calculation of eligibility period. Sec. 1825.  Application of State laws and regulations on good cause for waiver of time limits or late filing of claims. Sec. 1826.  Employment and case management services. Sec. 1827.  Administrative expenses and employment and case management services. Sec. 1828.  Training funding. Sec. 1829.  Prerequisite education; approved training programs. Sec. 1830.  Pre-layoff and part-time training. Sec. 1831.  On-the-job training. Sec. 1832.  Eligibility for unemployment insurance and program benefits while in training. Sec. 1833.  Job search and relocation allowances. subpart d— reemployment trade adjustment assistance program Sec. 1841.  Reemployment trade adjustment assistance program. subpart e— other matters Sec. 1851.  Office of Trade Adjustment Assistance. Sec. 1852.  Accountability of State agencies; collection and publication of program data; agreements with States. Sec. 1853.  Verification of eligibility for program benefits. Sec. 1854.  Collection of data and reports; information to workers. Sec. 1855.  Fraud and recovery of overpayments. Sec. 1856.  Sense of Congress on application of trade adjustment assistance. Sec. 1857.  Consultations in promulgation of regulations. Sec. 1858.  Technical corrections. PART II— Trade Adjustment Assistance for Firms Sec. 1861.  Expansion to service sector firms. Sec. 1862.  Modification of requirements for certification. Sec. 1863.  Basis for determinations. Sec. 1864.  Oversight and administration; authorization of appropriations. Sec. 1865.  Increased penalties for false statements. Sec. 1866.  Annual report on trade adjustment assistance for firms. Sec. 1867.  Technical corrections. PART III— Trade Adjustment Assistance for Communities Sec. 1871.  Purpose. Sec. 1872.  Trade adjustment assistance for communities. Sec. 1873.  Conforming amendments. PART IV— Trade Adjustment Assistance for Farmers Sec. 1881.  Definitions. Sec. 1882.  Eligibility. Sec. 1883.  Benefits. Sec. 1884.  Report. Sec. 1885.  Fraud and recovery of overpayments. Sec. 1886.  Determination of increases of imports for certain fishermen. Sec. 1887.  Extension of trade adjustment assistance for farmers. PART V— General Provisions Sec. 1891.  Effective date. Sec. 1892.  Extension of trade adjustment assistance programs. Sec. 1893.  Termination; related provisions. Sec. 1894.  Government Accountability Office report. Sec. 1895.  Emergency designation. PART VI— Health Coverage Improvement Sec. 1899.  Short title. Sec. 1899A.  Improvement of the affordability of the credit. Sec. 1899B.  Payment for monthly premiums paid prior to commencement of advance payments of credit. Sec. 1899C.  TAA recipients not enrolled in training programs eligible for credit. Sec. 1899D.  TAA pre-certification period rule for purposes of determining whether there is a 63-day lapse in creditable coverage. Sec. 1899E.  Continued qualification of family members after certain events. Sec. 1899F.  Extension of COBRA benefits for certain TAA-eligible individuals and PBGC recipients. Sec. 1899G.  Addition of coverage through voluntary employees’ beneficiary associations. Sec. 1899H.  Notice requirements. Sec. 1899I.  Survey and report on enhanced health coverage tax credit program. Sec. 1899J.  Authorization of appropriations. Sec. 1899K.  Extension of national emergency grants. Sec. 1899L.  GAO study and report. Subtitle A— Tax Relief for Individuals and Families PART I— GENERAL TAX RELIEF SEC. 1001. MAKING WORK PAY CREDIT. (a) In General.— Subpart C of part IV of subchapter A of chapter 1 is amended by inserting after section 36 the following new section: “SEC. 36A. MAKING WORK PAY CREDIT. “(a) Allowance of Credit.— In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the lesser of— “(1) 6.2 percent of earned income of the taxpayer, or “(2) $400 ($800 in the case of a joint return). “(b) Limitation Based on Modified Adjusted Gross Income.— “(1) In general.— The amount allowable as a credit under subsection (a) (determined without regard to this paragraph and subsection (c)) for the taxable year shall be reduced (but not below zero) by 2 percent of so much of the taxpayer’s modified adjusted gross income as exceeds $75,000 ($150,000 in the case of a joint return). “(2) Modified adjusted gross income.— For purposes of subparagraph (A), the term ‘modified adjusted gross income’ means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933. “(c) Reduction for Certain Other Payments.— The credit allowed under subsection (a) for any taxable year shall be reduced by the amount of any payments received by the taxpayer during such taxable year under section 2201, and any credit allowed to the taxpayer under section 2202, of the American Recovery and Reinvestment Tax Act of 2009. “(d) Definitions and Special Rules.— For purposes of this section— “(1) Eligible individual.— “(A) In general.— The term ‘eligible individual’ means any individual other than— “(i) any nonresident alien individual, “(ii) any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, and “(iii) an estate or trust. “(B) Identification number requirement.— Such term shall not include any individual who does not include on the return of tax for the taxable year— “(i) such individual’s social security account number, and “(ii) in the case of a joint return, the social security account number of one of the taxpayers on such return. For purposes of the preceding sentence, the social security account number shall not include a TIN issued by the Internal Revenue Service. “(2) Earned income.— The term ‘earned income’ has the meaning given such term by section 32(c)(2), except that such term shall not include net earnings from self-employment which are not taken into account in computing taxable income. For purposes of the preceding sentence, any amount excluded from gross income by reason of section 112 shall be treated as earned income which is taken into account in computing taxable income for the taxable year. “(e) Termination.— This section shall not apply to taxable years beginning after December 31, 2010.” . (b) Treatment of Possessions.— (1) Payments to possessions.— (A) Mirror code possession.— The Effective dates. Secretary of the Treasury shall pay to each possession of the United States with a mirror code tax system amounts equal to the loss to that possession by reason of the amendments made by this section with respect to taxable years beginning in 2009 and 2010. Such amounts shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession. (B) Other possessions.— The Effective dates. Secretary of the Treasury shall pay to each possession of the United States which does not have a mirror code tax system amounts estimated by the Secretary of the Treasury as being equal to the aggregate benefits that would have been provided to residents of such possession by reason of the amendments made by this section for taxable years beginning in 2009 and 2010 if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply with respect to any possession of the United States unless such possession has a plan, which has been approved by the Secretary of the Treasury, under which such possession will promptly distribute such payments to the residents of such possession. (2) Coordination with credit allowed against united states income taxes.— No credit shall be allowed against United States income taxes for any taxable year under section 36A of the Internal Revenue Code of 1986 (as added by this section) to any person— (A) to whom a credit is allowed against taxes imposed by the possession by reason of the amendments made by this section for such taxable year, or (B) who is eligible for a payment under a plan described in paragraph (1)(B) with respect to such taxable year. (3) Definitions and special rules.— (A) Possession of the united states.— For purposes of this subsection, the term “possession of the United States” includes the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands. (B) Mirror code tax system.— For purposes of this subsection, the term “mirror code tax system” means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States. (C) Treatment of payments.— For purposes of section 1324(b)(2) of title 31, United States Code, the payments under this subsection shall be treated in the same manner as a refund due from the credit allowed under section 36A of the Internal Revenue Code of 1986 (as added by this section). (c) Refunds Disregarded in the Administration of Federal Programs and Federally Assisted Programs.— Any credit or refund allowed or made to any individual by reason of section 36A of the Internal Revenue Code of 1986 (as added by this section) or by reason of subsection (b) of this section shall not be taken into account as income and shall not be taken into account as resources for the month of receipt and the following 2 months, for purposes of determining the eligibility of such individual or any other individual for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds. (d) Authority Relating to Clerical Errors.— Section 6213(g)(2) is 26 USC 6213. amended by striking “and” at the end of subparagraph (L)(ii), by striking the period at the end of subparagraph (M) and inserting “, and”, and by adding at the end the following new subparagraph: “(N) an omission of the reduction required under section 36A(c) with respect to the credit allowed under section 36A or an omission of the correct social security account number required under section 36A(d)(1)(B).” . (e) Conforming Amendments.— (1) Section 6211(b)(4)(A) is amended by inserting “36A,” after “36,”. (2) Section 1324(b)(2) of title 31, United States Code, is amended by inserting “36A,” after “36,”. (3) The table of sections for subpart C of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 36 the following new item: “Sec. 36A.  Making work pay credit.”. (f) Effective Date.— This section, and the amendments made by this section, shall apply to taxable years beginning after December 31, 2008. SEC. 1002. TEMPORARY INCREASE IN EARNED INCOME TAX CREDIT. (a) In General.— Subsection (b) of section 32 26 USC 32. is amended by adding at the end the following new paragraph: “(3) Special rules for 2009 and 2010.— In the case of any taxable year beginning in 2009 or 2010— “(A) Increased credit percentage for 3 or more qualifying children.— In the case of a taxpayer with 3 or more qualifying children, the credit percentage is 45 percent. “(B) Reduction of marriage penalty.— “(i) In general.— The dollar amount in effect under paragraph (2)(B) shall be $5,000. “(ii) Inflation adjustment.— In the case of any taxable year beginning in 2010, the $5,000 amount in clause (i) 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 2008’ for ‘calendar year 1992’ in subparagraph (B) thereof. “(iii) Rounding.— Subparagraph Applicability. (A) of subsection (j)(2) shall apply after taking into account any increase under clause (ii).” . (b) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 2008. SEC. 1003. TEMPORARY INCREASE OF REFUNDABLE PORTION OF CHILD CREDIT. (a) In General.— Paragraph (4) of section 24(d) 26 USC 24. is amended to read as follows: “(4) Special rule for 2009 and 2010.— Notwithstanding paragraph (3), in the case of any taxable year beginning in 2009 or 2010, the dollar amount in effect for such taxable year under paragraph (1)(B)(i) shall be $3,000.” . (b) Effective Date.— The 26 USC 24 note. amendments made by this section shall apply to taxable years beginning after December 31, 2008. SEC. 1004. AMERICAN OPPORTUNITY TAX CREDIT. (a) In General.— Section 25A (relating to Hope scholarship credit) is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) the following new subsection: “(i) American Opportunity Tax Credit.— In the case of any taxable year beginning in 2009 or 2010— “(1) Increase in credit.— The Hope Scholarship Credit shall be an amount equal to the sum of— “(A) 100 percent of so much of the qualified tuition and related expenses paid by the taxpayer during the taxable year (for education furnished to the eligible student during any academic period beginning in such taxable year) as does not exceed $2,000, plus “(B) 25 percent of such expenses so paid as exceeds $2,000 but does not exceed $4,000. “(2) Credit allowed for first 4 years of post-secondary education.— Subparagraphs (A) and Applicability. (C) of subsection (b)(2) shall be applied by substituting ‘4’ for ‘2’. “(3) Qualified tuition and related expenses to include required course materials.— Subsection (f)(1)(A) shall be applied by substituting ‘tuition, fees, and course materials’ for ‘tuition and fees’. “(4) Increase in agi limits for hope scholarship credit.— In lieu of applying subsection (d) with respect to the Hope Scholarship Credit, such credit (determined without regard to this paragraph) shall be reduced (but not below zero) by the amount which bears the same ratio to such credit (as so determined) as— “(A) the excess of— “(i) the taxpayer’s modified adjusted gross income (as defined in subsection (d)(3)) for such taxable year, over “(ii) $80,000 ($160,000 in the case of a joint return), bears to “(B) $10,000 ($20,000 in the case of a joint return). “(5) Credit allowed against alternative minimum tax.— In the case of a taxable year to which section 26(a)(2) does not apply, so much of the credit allowed under subsection (a) as is attributable to the Hope Scholarship Credit shall not exceed the excess of— “(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over “(B) the sum of the credits allowable under this subpart (other than this subsection and sections 23, 25D, and 30D) and section 27 for the taxable year. Any reference in this section or section 24, 25, 26, 25B, 904, or 1400C to a credit allowable under this subsection shall be treated as a reference to so much of the credit allowable under subsection (a) as is attributable to the Hope Scholarship Credit. “(6) Portion of credit made refundable.— 40 percent of so much of the credit allowed under subsection (a) as is attributable to the Hope Scholarship Credit (determined after application of paragraph (4) and without regard to this paragraph and section 26(a)(2) or paragraph (5), as the case may be) shall be treated as a credit allowable under subpart C (and not allowed under subsection (a)). The preceding sentence shall not apply to any taxpayer for any taxable year if such taxpayer is a child to whom subsection (g) of section 1 applies for such taxable year. “(7) Coordination with midwestern disaster area benefits.— In the case of a taxpayer with respect to whom section 702(a)(1)(B) of the Heartland Disaster Tax Relief Act of 2008 applies for any taxable year, such taxpayer may elect to waive the application of this subsection to such taxpayer for such taxable year.” . (b) Conforming Amendments.— (1) Section 26 USC 24. 24(b)(3)(B) is amended by inserting “25A(i),” after “23,”. (2) Section 25(e)(1)(C)(ii) is amended by inserting “25A(i),” after “24,”. (3) Section 26(a)(1) is amended by inserting “25A(i),” after “24,”. (4) Section 25B(g)(2) is amended by inserting “25A(i),” after “23,”. (5) Section 904(i) is amended by inserting “25A(i),” after “24,”. (6) Section 1400C(d)(2) is amended by inserting “25A(i),” after “24,”. (7) Section 6211(b)(4)(A) is amended by inserting “25A by reason of subsection (i)(6) thereof,” after “24(d),”. (8) Section 1324(b)(2) of title 31, United States Code, is amended by inserting “25A,” before “35”. (c) Treatment of Possessions.— (1) Payments to possessions.— (A) Mirror code possession.— The Secretary of the Treasury shall pay to each possession of the United States with a mirror code tax system amounts equal to the loss to that possession by reason of the application of section 25A(i)(6) of the Internal Revenue Code of 1986 (as added by this section) with respect to taxable years beginning in 2009 and 2010. Such amounts shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession. (B) Other possessions.— The Secretary of the Treasury shall pay to each possession of the United States which does not have a mirror code tax system amounts estimated by the Secretary of the Treasury as being equal to the aggregate benefits that would have been provided to residents of such possession by reason of the application of section 25A(i)(6) of such Code (as so added) for taxable years beginning in 2009 and 2010 if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply with respect to any possession of the United States unless such possession has a plan, which has been approved by the Secretary of the Treasury, under which such possession will promptly distribute such payments to the residents of such possession. (2) Coordination with credit allowed against united states income taxes.— Section 25A(i)(6) of such Code (as added by this section) shall not apply to a bona fide resident of any possession of the United States. (3) Definitions and special rules.— (A) Possession of the united states.— For purposes of this subsection, the term “possession of the United States” includes the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands. (B) Mirror code tax system.— For purposes of this subsection, the term “mirror code tax system” means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States. (C) Treatment of payments.— For purposes of section 1324(b)(2) of title 31, United States Code, the payments under this subsection shall be treated in the same manner as a refund due from the credit allowed under section 25A of the Internal Revenue Code of 1986 by reason of subsection (i)(6) of such section (as added by this section). (d) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 2008. (e) Application of EGTRRA Sunset.— The amendment made by subsection (b)(1) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provision of such Act to which such amendment relates. (f) Treasury Studies Regarding Education Incentives.— (1) Study regarding coordination with non-tax student financial assistance.— The Secretary of the Treasury and the Secretary of Education, or their delegates, shall— (A) study how to coordinate the credit allowed under section 25A of the Internal Revenue Code of 1986 with the Federal Pell Grant program under section 401 of the Higher Education Act of 1965 to maximize their effectiveness at promoting college affordability, and (B) examine ways to expedite the delivery of the tax credit. (2) Study regarding inclusion of community service requirements.— The Secretary of the Treasury and the Secretary of Education, or their delegates, shall study the feasibility of requiring including community service as a condition of taking their tuition and related expenses into account under section 25A of the Internal Revenue Code of 1986. (3) Report.— Not later than 1 year after the date of the enactment of this Act, the Secretary of the Treasury, or the Secretary’s delegate, shall report to Congress on the results of the studies conducted under this paragraph. SEC. 1005. COMPUTER TECHNOLOGY AND EQUIPMENT ALLOWED AS A QUALIFIED HIGHER EDUCATION EXPENSE FOR SECTION 529 ACCOUNTS IN 2009 AND 2010. (a) In General.— Section 529(e)(3)(A) 26 USC 529. is amended by striking “and” at the end of clause (i), by striking the period at the end of clause (ii), and by adding at the end the following: “(iii) expenses paid or incurred in 2009 or 2010 for the purchase of any computer technology or equipment (as defined in section 170(e)(6)(F)(i)) or Internet access and related services, if such technology, equipment, or services are to be used by the beneficiary and the beneficiary’s family during any of the years the beneficiary is enrolled at an eligible educational institution. Clause (iii) shall not include expenses for computer software designed for sports, games, or hobbies unless the software is predominantly educational in nature.” . (b) Effective Date.— The amendments made by this section shall apply to expenses paid or incurred after December 31, 2008. SEC. 1006. EXTENSION OF AND INCREASE IN FIRST-TIME HOMEBUYER CREDIT; WAIVER OF REQUIREMENT TO REPAY. (a) Extension.— (1) In general.— Section 36(h) is amended by striking “July 1, 2009” and inserting “December 1, 2009”. (2) Conforming amendment.— Section 36(g) is amended by striking “July 1, 2009” and inserting “December 1, 2009”. (b) Increase.— (1) In general.— Section 36(b) is amended by striking “$7,500” each place it appears and inserting “$8,000”. (2) Conforming amendment.— Section 36(b)(1)(B) is amended by striking “$3,750” and inserting “$4,000”. (c) Waiver of Recapture.— (1) In general.— Paragraph (4) of section 36(f) is amended by adding at the end the following new subparagraph: “(D) Waiver of recapture for purchases in 2009.— In the case Time period. of any credit allowed with respect to the purchase of a principal residence after December 31, 2008, and before December 1, 2009— “(i) paragraph (1) shall not apply, and “(ii) paragraph (2) shall apply only if the disposition or cessation described in paragraph (2) with respect to such residence occurs during the 36-month period beginning on the date of the purchase of such residence by the taxpayer.” . (2) Conforming amendment.— Subsection (g) of section 36 is amended by striking “subsection (c)” and inserting “subsections (c) and (f)(4)(D)”. (d) Coordination With First-Time Homebuyer Credit for District of Columbia.— (1) In general.— Subsection (e) of section 1400C is amended by adding at the end the following new paragraph: “(4) Coordination with national first-time homebuyers credit.— No credit shall Time period. be allowed under this section to any taxpayer with respect to the purchase of a residence after December 31, 2008, and before December 1, 2009, if a credit under section 36 is allowable to such taxpayer (or the taxpayer’s spouse) with respect to such purchase.” . (2) Conforming amendment.— Section 36(d) 26 USC 36. is amended by striking paragraph (1). (e) Removal of Prohibition on Financing by Mortgage Revenue Bonds.— Section 36(d), as amended by subsection (c)(2), is amended by striking paragraph (2) and by redesignating paragraphs (3) and (4) as paragraphs (1) and (2), respectively. (f) Effective Date.— The amendments made by this section shall apply to residences purchased after December 31, 2008. SEC. 1007. SUSPENSION OF TAX ON PORTION OF UNEMPLOYMENT COMPENSATION. (a) In General.— Section 85 of the Internal Revenue Code of 1986 (relating to unemployment compensation) is amended by adding at the end the following new subsection: “(c) Special Rule for 2009.— In the case of any taxable year beginning in 2009, gross income shall not include so much of the unemployment compensation received by an individual as does not exceed $2,400.” . (b) Effective Date.— The amendment made by this section shall apply to taxable years beginning after December 31, 2008. SEC. 1008. ADDITIONAL DEDUCTION FOR STATE SALES TAX AND EXCISE TAX ON THE PURCHASE OF CERTAIN MOTOR VEHICLES. (a) In General.— Subsection (a) of section 164 is amended by inserting after paragraph (5) the following new paragraph: “(6) Qualified motor vehicle taxes.” . (b) Qualified Motor Vehicle Taxes.— Subsection (b) of section 164 is amended by adding at the end the following new paragraph: “(6) Qualified motor vehicle taxes.— “(A) In general.— For purposes of this section, the term ‘qualified motor vehicle taxes’ means any State or local sales or excise tax imposed on the purchase of a qualified motor vehicle. “(B) Limitation based on vehicle price.— The amount of any State or local sales or excise tax imposed on the purchase of a qualified motor vehicle taken into account under subparagraph (A) shall not exceed the portion of such tax attributable to so much of the purchase price as does not exceed $49,500. “(C) Income limitation.— The amount otherwise taken into account under subparagraph (A) (after the application of subparagraph (B)) for any taxable year shall be reduced (but not below zero) by the amount which bears the same ratio to the amount which is so treated as— “(i) the excess (if any) of— “(I) the taxpayer’s modified adjusted gross income for such taxable year, over “(II) $125,000 ($250,000 in the case of a joint return), bears to “(ii) $10,000. For purposes of the preceding sentence, the term ‘modified adjusted gross income’ means the adjusted gross income of the taxpayer for the taxable year (determined without regard to sections 911, 931, and 933). “(D) Qualified motor vehicle.— For purposes of this paragraph— “(i) In general.— The term ‘qualified motor vehicle’ means— “(I) a passenger automobile or light truck which is treated as a motor vehicle for purposes of title II of the Clean Air Act, the gross vehicle weight rating of which is not more than 8,500 pounds, and the original use of which commences with the taxpayer, “(II) a motorcycle the gross vehicle weight rating of which is not more than 8,500 pounds and the original use of which commences with the taxpayer, and “(III) a motor home the original use of which commences with the taxpayer. “(ii) Other terms.— The terms ‘motorcycle’ and ‘motor home’ have the meanings given such terms under section 571.3 of title 49, Code of Federal Regulations (as in effect on the date of the enactment of this paragraph). “(E) Qualified motor vehicle taxes not included in cost of acquired property.— The last sentence of subsection (a) shall not apply to any qualified motor vehicle taxes. “(F) Coordination with general sales tax.— This paragraph shall not apply in the case of a taxpayer who makes an election under paragraph (5) for the taxable year. “(G) Termination.— This paragraph shall not apply to purchases after December 31, 2009.” . (c) Deduction Allowed to Nonitemizers.— (1) In general.— Paragraph (1) of section 63(c) 26 USC 63. is amended by striking “and” at the end of subparagraph (C), by striking the period at the end of subparagraph (D) and inserting “, and”, and by adding at the end the following new subparagraph: “(E) the motor vehicle sales tax deduction.” . (2) Definition.— Section 63(c) is amended by adding at the end the following new paragraph: “(9) Motor vehicle sales tax deduction.— For purposes of paragraph (1), the term ‘motor vehicle sales tax deduction’ means the amount allowable as a deduction under section 164(a)(6). Such term shall not include any amount taken into account under section 62(a).” . (d) Treatment of Deduction Under Alternative Minimum Tax.— The last sentence of section 56(b)(1)(E) is amended by striking “section 63(c)(1)(D)” and inserting “subparagraphs (D) and (E) of section 63(c)(1)”. (e) Effective Date.— The amendments made by this section shall apply to purchases on or after the date of the enactment of this Act in taxable years ending after such date. PART II— ALTERNATIVE MINIMUM TAX RELIEF SEC. 1011. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR NONREFUNDABLE PERSONAL CREDITS. (a) In General.— Paragraph (2) of section 26(a) 26 USC 26. (relating to special rule for taxable years 2000 through 2008) is amended— (1) by striking “or 2008” and inserting “2008, or 2009”, and (2) by striking “2008” in the heading thereof and inserting “2009”. (b) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 2008. SEC. 1012. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX EXEMPTION AMOUNT. (a) In General.— Paragraph (1) of section 55(d) (relating to exemption amount) is amended— (1) by striking “($69,950 in the case of taxable years beginning in 2008)” in subparagraph (A) and inserting “($70,950 in the case of taxable years beginning in 2009)”, and (2) by striking “($46,200 in the case of taxable years beginning in 2008)” in subparagraph (B) and inserting “($46,700 in the case of taxable years beginning in 2009)”. (b) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 2008. Subtitle B— Energy Incentives PART I— RENEWABLE ENERGY INCENTIVES SEC. 1101. EXTENSION OF CREDIT FOR ELECTRICITY PRODUCED FROM CERTAIN RENEWABLE RESOURCES. (a) In General.— Subsection (d) of section 45 is amended— (1) by striking “2010” in paragraph (1) and inserting “2013”, (2) by striking “2011” each place it appears in paragraphs (2), (3), (4), (6), (7) and (9) and inserting “2014”, and (3) by striking “2012” in paragraph (11)(B) and inserting “2014”. (b) Technical Amendment.— Paragraph (5) of section 45(d) is amended by striking “and before” and all that follows and inserting “ and before October 3, 2008.”. (c) Effective Date.— (1) In general.— The amendments made by subsection (a) shall apply to property placed in service after the date of the enactment of this Act. (2) Technical amendment.— The amendment made by subsection (b) shall take effect as if included in section 102 of the Energy Improvement and Extension Act of 2008. SEC. 1102. ELECTION OF INVESTMENT CREDIT IN LIEU OF PRODUCTION CREDIT. (a) In General.— Subsection (a) of section 48 is amended by adding at the end the following new paragraph: “(5) Election to treat qualified facilities as energy property.— “(A) In general.— In the case of any qualified property which is part of a qualified investment credit facility— “(i) such property shall be treated as energy property for purposes of this section, and “(ii) the energy percentage with respect to such property shall be 30 percent. “(B) Denial of production credit.— No credit shall be allowed under section 45 for any taxable year with respect to any qualified investment credit facility. “(C) Qualified investment credit facility.— For purposes of this paragraph, the term ‘qualified investment credit facility’ means any of the following facilities if no credit has been allowed under section 45 with respect to such facility and the taxpayer makes an irrevocable election to have this paragraph apply to such facility: “(i) Wind facilities.— Any qualified facility (within the meaning of section 45) described in paragraph (1) of section 45(d) if such facility is placed in service in 2009, 2010, 2011, or 2012. “(ii) Other facilities.— Any qualified facility (within the meaning of section 45) described in paragraph (2), (3), (4), (6), (7), (9), or (11) of section 45(d) if such facility is placed in service in 2009, 2010, 2011, 2012, or 2013. “(D) Qualified property.— For purposes of this paragraph, the term ‘qualified property’ means property— “(i) which is— “(I) tangible personal property, or “(II) other tangible property (not including a building or its structural components), but only if such property is used as an integral part of the qualified investment credit facility, and “(ii) with respect to which depreciation (or amortization in lieu of depreciation) is allowable.” . (b) Effective Date.— The amendments made by this section shall apply to facilities placed in service after December 31, 2008. SEC. 1103. REPEAL OF CERTAIN LIMITATIONS ON CREDIT FOR RENEWABLE ENERGY PROPERTY. (a) Repeal of Limitation on Credit for Qualified Small Wind Energy Property.— Paragraph (4) of section 48(c) 26 USC 48. is amended by striking subparagraph (B) and by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C). (b) Repeal of Limitation on Property Financed by Subsidized Energy Financing.— (1) In general.— Section 48(a)(4) is amended by adding at the end the following new subparagraph: “(D) Termination.— This paragraph shall not apply to periods after December 31, 2008, under rules similar to the rules of section 48(m) (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).” . (2) Conforming amendments.— (A) Section 25C(e)(1) is amended by striking “(8), and (9)” and inserting “and (8)”. (B) Section 25D(e) is amended by striking paragraph (9). (C) Section 48A(b)(2) 26 USC 48A. is amended by inserting “(without regard to subparagraph (D) thereof)” after “section 48(a)(4)”. (D) Section 48B(b)(2) is amended by inserting “(without regard to subparagraph (D) thereof)” after “section 48(a)(4)”. (c) Effective Date.— (1) In general.— Except as provided in paragraph (2), the amendment made by this section shall apply to periods after December 31, 2008, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990). (2) Conforming amendments.— The amendments made by subparagraphs (A) and (B) of subsection (b)(2) shall apply to taxable years beginning after December 31, 2008. SEC. 1104. COORDINATION WITH RENEWABLE ENERGY GRANTS.   Section 48 is amended by adding at the end the following new subsection: “(d) Coordination With Department of Treasury Grants.— In the case of any property with respect to which the Secretary makes a grant under section 1603 of the American Recovery and Reinvestment Tax Act of 2009— “(1) Denial of production and investment credits.— No credit shall be determined under this section or section 45 with respect to such property for the taxable year in which such grant is made or any subsequent taxable year. “(2) Recapture of credits for progress expenditures made before grant.— If a credit was determined under this section with respect to such property for any taxable year ending before such grant is made— “(A) the tax imposed under subtitle A on the taxpayer for the taxable year in which such grant is made shall be increased by so much of such credit as was allowed under section 38, “(B) the general business carryforwards under section 39 shall be adjusted so as to recapture the portion of such credit which was not so allowed, and “(C) the amount of such grant shall be determined without regard to any reduction in the basis of such property by reason of such credit. “(3) Treatment of grants.— Any such grant shall— “(A) not be includible in the gross income of the taxpayer, but “(B) shall be taken into account in determining the basis of the property to which such grant relates, except that the basis of such property shall be reduced under section 50(c) in the same manner as a credit allowed under subsection (a).” . PART II— INCREASED ALLOCATIONS OF NEW CLEAN RENEWABLE ENERGY BONDS AND QUALIFIED ENERGY CONSERVATION BONDS SEC. 1111. INCREASED LIMITATION ON ISSUANCE OF NEW CLEAN RENEWABLE ENERGY BONDS.   Subsection (c) of section 54C 26 USC 54C. is amended by adding at the end the following new paragraph: “(4) Additional limitation.— The national new clean renewable energy bond limitation shall be increased by $1,600,000,000. Such increase shall be allocated by the Secretary consistent with the rules of paragraphs (2) and (3).” . SEC. 1112. INCREASED LIMITATION ON ISSUANCE OF QUALIFIED ENERGY CONSERVATION BONDS. (a) In General.— Section 54D(d) is amended by striking “$800,000,000” and inserting “$3,200,000,000”. (b) Clarification With Respect to Green Community Programs.— (1) In general.— Clause (ii) of section 54D(f)(1)(A) is amended by inserting “(including the use of loans, grants, or other repayment mechanisms to implement such programs)” after “green community programs”. (2) Special rules for bonds for implementing green community programs.— Subsection (e) of section 54D is amended by adding at the end the following new paragraph: “(4) Special rules for bonds to implement green community programs.— In the case of any bond issued for the purpose of providing loans, grants, or other repayment mechanisms for capital expenditures to implement green community programs, such bond shall not be treated as a private activity bond for purposes of paragraph (3).” . PART III— ENERGY CONSERVATION INCENTIVES SEC. 1121. EXTENSION AND MODIFICATION OF CREDIT FOR NONBUSINESS ENERGY PROPERTY. (a) In General.— Section 25C is amended by striking subsections (a) and (b) and inserting the following new subsections: “(a) Allowance of Credit.— In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 30 percent of the sum of— “(1) the amount paid or incurred by the taxpayer during such taxable year for qualified energy efficiency improvements, and “(2) the amount of the residential energy property expenditures paid or incurred by the taxpayer during such taxable year. “(b) Limitation.— The aggregate amount of the credits allowed under this section for taxable years beginning in 2009 and 2010 with respect to any taxpayer shall not exceed $1,500.” . (b) Modifications of Standards for Energy-Efficient Building Property.— (1) Electric heat pumps.— Subparagraph (B) of section 25C(d)(3) 26 USC 25C. is amended to read as follows: “(B) an electric heat pump which achieves the highest efficiency tier established by the Consortium for Energy Efficiency, as in effect on January 1, 2009.” . (2) Central air conditioners.— Subparagraph (C) of section 25C(d)(3) is amended by striking “2006” and inserting “2009”. (3) Water heaters.— Subparagraph (D) of section 25C(d)(3) is amended to read as follows: “(D) a natural gas, propane, or oil water heater which has either an energy factor of at least 0.82 or a thermal efficiency of at least 90 percent.” . (4) Wood stoves.— Subparagraph (E) of section 25C(d)(3) is amended by inserting “, as measured using a lower heating value” after “75 percent”. (c) Modifications of Standards for Oil Furnaces and Hot Water Boilers.— (1) In general.— Paragraph (4) of section 25C(d) is amended to read as follows: “(4) Qualified natural gas, propane, and oil furnaces and hot water boilers.— “(A) Qualified natural gas furnace.— The term ‘qualified natural gas furnace’ means any natural gas furnace which achieves an annual fuel utilization efficiency rate of not less than 95. “(B) Qualified natural gas hot water boiler.— The term ‘qualified natural gas hot water boiler’ means any natural gas hot water boiler which achieves an annual fuel utilization efficiency rate of not less than 90. “(C) Qualified propane furnace.— The term ‘qualified propane furnace’ means any propane furnace which achieves an annual fuel utilization efficiency rate of not less than 95. “(D) Qualified propane hot water boiler.— The term ‘qualified propane hot water boiler’ means any propane hot water boiler which achieves an annual fuel utilization efficiency rate of not less than 90. “(E) Qualified oil furnaces.— The term ‘qualified oil furnace’ means any oil furnace which achieves an annual fuel utilization efficiency rate of not less than 90. “(F) Qualified oil hot water boiler.— The term ‘qualified oil hot water boiler’ means any oil hot water boiler which achieves an annual fuel utilization efficiency rate of not less than 90.” . (2) Conforming amendment.— Clause (ii) of section 25C(d)(2)(A) is amended to read as follows: “(ii) any qualified natural gas furnace, qualified propane furnace, qualified oil furnace, qualified natural gas hot water boiler, qualified propane hot water boiler, or qualified oil hot water boiler, or” . (d) Modifications of Standards for Qualified Energy Efficiency Improvements.— (1) Qualifications for exterior windows, doors, and skylights.— Subsection (c) of section 25C is amended by adding at the end the following new paragraph: “(4) Qualifications for exterior windows, doors, and skylights.— Such term shall not include any component described in subparagraph (B) or (C) of paragraph (2) unless such component is equal to or below a U factor of 0.30 and SHGC of 0.30.” . (2) Additional qualification for insulation.— Subparagraph (A) of section 25C(c)(2) 26 USC 25C. is amended by inserting “and meets the prescriptive criteria for such material or system established by the 2009 International Energy Conservation Code, as such Code (including supplements) is in effect on the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009” after “such dwelling unit”. (e) Extension.— Section 25C(g)(2) is amended by striking “December 31, 2009” and inserting “December 31, 2010”. (f) Effective Dates.— (1) In general.— Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 2008. (2) Efficiency standards.— The amendments made by paragraphs (1), (2), and (3) of subsection (b) and subsections (c) and (d) shall apply to property placed in service after the date of the enactment of this Act. SEC. 1122. MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY. (a) Removal of Credit Limitation for Property Placed in Service.— (1) In general.— Paragraph (1) of section 25D(b) is amended to read as follows: “(1) Maximum credit for fuel cells.— In the case of any qualified fuel cell property expenditure, the credit allowed under subsection (a) (determined without regard to subsection (c)) for any taxable year shall not exceed $500 with respect to each half kilowatt of capacity of the qualified fuel cell property (as defined in section 48(c)(1)) to which such expenditure relates.” . (2) Conforming amendment.— Paragraph (4) of section 25D(e) is amended— (A) by striking all that precedes subparagraph (B) and inserting the following: “(4) Fuel cell expenditure limitations in case of joint occupancy.— In the case of any dwelling unit with respect to which qualified fuel cell property expenditures are made and which is jointly occupied and used during any calendar year as a residence by two or more individuals, the following rules shall apply: “(A) Maximum expenditures for fuel cells.— The maximum amount of such expenditures which may be taken into account under subsection (a) by all such individuals with respect to such dwelling unit during such calendar year shall be $1,667 in the case of each half kilowatt of capacity of qualified fuel cell property (as defined in section 48(c)(1)) with respect to which such expenditures relate.” , and (B) by striking subparagraph (C). (b) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 2008. SEC. 1123. TEMPORARY INCREASE IN CREDIT FOR ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY. (a) In General.— Section 30C(e) 26 USC 30C. is amended by adding at the end the following new paragraph: “(6) Special rule for property placed in service during 2009 and 2010.— In the case of property placed in service in taxable years beginning after December 31, 2008, and before January 1, 2011— “(A) in the case of any such property which does not relate to hydrogen— “(i) subsection (a) shall be applied by substituting ‘50 percent’ for ‘30 percent’, “(ii) subsection (b)(1) shall be applied by substituting ‘$50,000’ for ‘$30,000’, and “(iii) subsection (b)(2) shall be applied by substituting ‘$2,000’ for ‘$1,000’, and “(B) in the case of any such property which relates to hydrogen, subsection (b)(1) shall be applied by substituting ‘$200,000’ for ‘$30,000’.” . (b) Effective Date.— The amendment made by this section shall apply to taxable years beginning after December 31, 2008. PART IV— MODIFICATION OF CREDIT FOR CARBON DIOXIDE SEQUESTRATION SEC. 1131. APPLICATION OF MONITORING REQUIREMENTS TO CARBON DIOXIDE USED AS A TERTIARY INJECTANT. (a) In General.— Section 45Q(a)(2) is amended by striking “and” at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting “, and”, and by adding at the end the following new subparagraph: “(C) disposed of by the taxpayer in secure geological storage.” . (b) Conforming Amendments.— (1) Section 45Q(d)(2) is amended— (A) by striking “subsection (a)(1)(B)” and inserting “paragraph (1)(B) or (2)(C) of subsection (a)”, (B) by striking “and unminable coal seems” and inserting “, oil and gas reservoirs, and unminable coal seams”, and (C) by inserting “the Secretary of Energy, and the Secretary of the Interior,” after “Environmental Protection Agency”. (2) Section 45Q(a)(1)(B) is amended by inserting “and not used by the taxpayer as described in paragraph (2)(B)” after “storage”. (3) Section 45Q(e) is amended by striking “captured and disposed of or used as a tertiary injectant” and inserting “taken into account in accordance with subsection (a)”. (c) Effective Date.— The amendments made by this section shall apply to carbon dioxide captured after the date of the enactment of this Act. PART V— PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES SEC. 1141. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES. (a) In General.— Section 30D 26 USC 30D. is amended to read as follows: “SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES. “(a) Allowance of Credit.— There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the credit amounts determined under subsection (b) with respect to each new qualified plug-in electric drive motor vehicle placed in service by the taxpayer during the taxable year. “(b) Per Vehicle Dollar Limitation.— “(1) In general.— The amount determined under this subsection with respect to any new qualified plug-in electric drive motor vehicle is the sum of the amounts determined under paragraphs (2) and (3) with respect to such vehicle. “(2) Base amount.— The amount determined under this paragraph is $2,500. “(3) Battery capacity.— In the case of a vehicle which draws propulsion energy from a battery with not less than 5 kilowatt hours of capacity, the amount determined under this paragraph is $417, plus $417 for each kilowatt hour of capacity in excess of 5 kilowatt hours. The amount determined under this paragraph shall not exceed $5,000. “(c) Application With Other Credits.— “(1) Business credit treated as part of general business credit.— So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to property of a character subject to an allowance for depreciation shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)). “(2) Personal credit.— “(A) In general.— For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year. “(B) Limitation based on amount of tax.— In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall not exceed the excess of— “(i) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over “(ii) the sum of the credits allowable under subpart A (other than this section and sections 23 and 25D) and section 27 for the taxable year. “(d) New Qualified Plug-in Electric Drive Motor Vehicle.— For purposes of this section— “(1) In general.— The term ‘new qualified plug-in electric drive motor vehicle’ means a motor vehicle— “(A) the original use of which commences with the taxpayer, “(B) which is acquired for use or lease by the taxpayer and not for resale, “(C) which is made by a manufacturer, “(D) which is treated as a motor vehicle for purposes of title II of the Clean Air Act, “(E) which has a gross vehicle weight rating of less than 14,000 pounds, and “(F) which is propelled to a significant extent by an electric motor which draws electricity from a battery which— “(i) has a capacity of not less than 4 kilowatt hours, and “(ii) is capable of being recharged from an external source of electricity. “(2) Motor vehicle.— The term ‘motor vehicle’ means any vehicle which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails) and which has at least 4 wheels. “(3) Manufacturer.— The term ‘manufacturer’ has the meaning given such term in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act (42 U.S.C. 7521 et seq.). “(4) Battery capacity.— The term ‘capacity’ means, with respect to any battery, the quantity of electricity which the battery is capable of storing, expressed in kilowatt hours, as measured from a 100 percent state of charge to a 0 percent state of charge. “(e) Limitation on Number of New Qualified Plug-in Electric Drive Motor Vehicles Eligible for Credit.— “(1) In general.— In the case of a new qualified plug-in electric drive motor vehicle sold during the phaseout period, only the applicable percentage of the credit otherwise allowable under subsection (a) shall be allowed. “(2) Phaseout period.— For purposes of this subsection, the phaseout period is the period beginning with the second calendar quarter following the calendar quarter which includes the first date on which the number of new qualified plug-in electric drive motor vehicles manufactured by the manufacturer of the vehicle referred to in paragraph (1) sold for use in the United States after December 31, 2009, is at least 200,000. “(3) Applicable percentage.— For purposes of paragraph (1), the applicable percentage is— “(A) 50 percent for the first 2 calendar quarters of the phaseout period, “(B) 25 percent for the 3d and 4th calendar quarters of the phaseout period, and “(C) 0 percent for each calendar quarter thereafter. “(4) Controlled groups.— Rules similar to the rules of section 30B(f)(4) shall apply for purposes of this subsection. “(f) Special Rules.— “(1) Basis reduction.— For purposes of this subtitle, the basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit so allowed. “(2) No double benefit.— The amount of any deduction or other credit allowable under this chapter for a new qualified plug-in electric drive motor vehicle shall be reduced by the amount of credit allowed under subsection (a) for such vehicle. “(3) Property used by tax-exempt entity.— In the case of a vehicle the use of which is described in paragraph (3) or (4) of section 50(b) and which is not subject to a lease, the person who sold such vehicle to the person or entity using such vehicle shall be treated as the taxpayer that placed such vehicle in service, but only if such person clearly discloses to such person or entity in a document the amount of any credit allowable under subsection (a) with respect to such vehicle (determined without regard to subsection (c)). “(4) Property used outside united states not qualified.— No credit shall be allowable under subsection (a) with respect to any property referred to in section 50(b)(1). “(5) Recapture.— The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit. “(6) Election not to take credit.— No credit shall be allowed under subsection (a) for any vehicle if the taxpayer elects to not have this section apply to such vehicle. “(7) Interaction with air quality and motor vehicle safety standards.— A motor vehicle shall not be considered eligible for a credit under this section unless such vehicle is in compliance with— “(A) the applicable provisions of the Clean Air Act for the applicable make and model year of the vehicle (or applicable air quality provisions of State law in the case of a State which has adopted such provision under a waiver under section 209(b) of the Clean Air Act), and “(B) the motor vehicle safety provisions of sections 30101 through 30169 of title 49, United States Code.” . (b) Conforming Amendments.— (1) Section 30B(d)(3)(D) 26 USC 30B. is amended by striking “subsection (d) thereof” and inserting “subsection (c) thereof”. (2) Section 38(b)(35) is amended by striking “30D(d)(1)” and inserting “30D(c)(1)”. (3) Section 1016(a)(25) is amended by striking “section 30D(e)(4)” and inserting “section 30D(f)(1)”. (4) Section 6501(m) is amended by striking “section 30D(e)(9)” and inserting “section 30D(e)(4)”. (c) Effective Date.— The amendments made by this section shall apply to vehicles acquired after December 31, 2009. SEC. 1142. CREDIT FOR CERTAIN PLUG-IN ELECTRIC VEHICLES. (a) In General.— Section 30 is amended to read as follows: “SEC. 30. CERTAIN PLUG-IN ELECTRIC VEHICLES. “(a) Allowance of Credit.— There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 10 percent of the cost of any qualified plug-in electric vehicle placed in service by the taxpayer during the taxable year. “(b) Per Vehicle Dollar Limitation.— The amount of the credit allowed under subsection (a) with respect to any vehicle shall not exceed $2,500. “(c) Application With Other Credits.— “(1) Business credit treated as part of general business credit.— So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to property of a character subject to an allowance for depreciation shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)). “(2) Personal credit.— “(A) In general.— For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year. “(B) Limitation based on amount of tax.— In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall not exceed the excess of— “(i) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over “(ii) the sum of the credits allowable under subpart A (other than this section and sections 23, 25D, and 30D) and section 27 for the taxable year. “(d) Qualified Plug-in Electric Vehicle.— For purposes of this section— “(1) In general.— The term ‘qualified plug-in electric vehicle’ means a specified vehicle— “(A) the original use of which commences with the taxpayer, “(B) which is acquired for use or lease by the taxpayer and not for resale, “(C) which is made by a manufacturer, “(D) which is manufactured primarily for use on public streets, roads, and highways, “(E) which has a gross vehicle weight rating of less than 14,000 pounds, and “(F) which is propelled to a significant extent by an electric motor which draws electricity from a battery which— “(i) has a capacity of not less than 4 kilowatt hours (2.5 kilowatt hours in the case of a vehicle with 2 or 3 wheels), and “(ii) is capable of being recharged from an external source of electricity. “(2) Specified vehicle.— The term ‘specified vehicle’ means any vehicle which— “(A) is a low speed vehicle within the meaning of section 571.3 of title 49, Code of Federal Regulations (as in effect on the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009), or “(B) has 2 or 3 wheels. “(3) Manufacturer.— The term ‘manufacturer’ has the meaning given such term in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act (42 U.S.C. 7521 et seq.). “(4) Battery capacity.— The term ‘capacity’ means, with respect to any battery, the quantity of electricity which the battery is capable of storing, expressed in kilowatt hours, as measured from a 100 percent state of charge to a 0 percent state of charge. “(e) Special Rules.— “(1) Basis reduction.— For purposes of this subtitle, the basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit so allowed. “(2) No double benefit.— The amount of any deduction or other credit allowable under this chapter for a new qualified plug-in electric drive motor vehicle shall be reduced by the amount of credit allowable under subsection (a) for such vehicle. “(3) Property used by tax-exempt entity.— In the case of a vehicle the use of which is described in paragraph (3) or (4) of section 50(b) and which is not subject to a lease, the person who sold such vehicle to the person or entity using such vehicle shall be treated as the taxpayer that placed such vehicle in service, but only if such person clearly discloses to such person or entity in a document the amount of any credit allowable under subsection (a) with respect to such vehicle (determined without regard to subsection (c)). “(4) Property used outside united states not qualified.— No credit shall be allowable under subsection (a) with respect to any property referred to in section 50(b)(1). “(5) Recapture.— The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit. “(6) Election not to take credit.— No credit shall be allowed under subsection (a) for any vehicle if the taxpayer elects to not have this section apply to such vehicle. “(f) Termination.— This section shall not apply to any vehicle acquired after December 31, 2011.” . (b) Conforming Amendments.— (1) (A) Section 24(b)(3)(B) 26 USC 24. is amended by inserting “30,” after “25D,”. (B) Section 25(e)(1)(C)(ii) is amended by inserting “30,” after “25D,”. (C) Section 25B(g)(2) is amended by inserting “30,” after “25D,”. (D) Section 26(a)(1) is amended by inserting “30,” after “25D,”. (E) Section 904(i) is amended by striking “and 25B” and inserting “25B, 30, and 30D”. (F) Section 1400C(d)(2) is amended by striking “and 25D” and inserting “25D, and 30”. (2) Paragraph (1) of section 30B(h) is amended to read as follows: “(1) Motor vehicle.— The term ‘motor vehicle’ means any vehicle which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails) and which has at least 4 wheels.” . (3) Section 30C(d)(2)(A) 26 USC 30C. is amended by striking “, 30,”. (4) (A) Section 53(d)(1)(B) is amended by striking clause (iii) and redesignating clause (iv) as clause (iii). (B) Subclause (II) of section 53(d)(1)(B)(iii), as so redesignated, is amended by striking “increased in the manner provided in clause (iii)”. (5) Section 55(c)(3) is amended by striking “30(b)(3),”. (6) Section 1016(a)(25) is amended by striking “section 30(d)(1)” and inserting “section 30(e)(1)”. (7) Section 6501(m) is amended by striking “section 30(d)(4)” and inserting “section 30(e)(6)”. (8) The item in the table of sections for subpart B of part IV of subchapter A of chapter 1 is amended to read as follows: “Sec. 30.  Certain plug-in electric vehicles.”. (c) Effective Date.— The amendments made by this section shall apply to vehicles acquired after the date of the enactment of this Act. (d) Transitional Rule.— In the Time period. 26 USC 30 note. case of a vehicle acquired after the date of the enactment of this Act and before January 1, 2010, no credit shall be allowed under section 30 of the Internal Revenue Code of 1986, as added by this section, if credit is allowable under section 30D of such Code with respect to such vehicle. (e) Application of EGTRRA Sunset.— The amendment made by subsection (b)(1)(A) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provision of such Act to which such amendment relates. SEC. 1143. CONVERSION KITS. (a) In General.— Section 30B (relating to alternative motor vehicle credit) is amended by redesignating subsections (i) and (j) as subsections (j) and (k), respectively, and by inserting after subsection (h) the following new subsection: “(i) Plug-in Conversion Credit.— “(1) In general.— For purposes of subsection (a), the plug-in conversion credit determined under this subsection with respect to any motor vehicle which is converted to a qualified plug-in electric drive motor vehicle is 10 percent of so much of the cost of the converting such vehicle as does not exceed $40,000. “(2) Qualified plug-in electric drive motor vehicle.— For purposes of this subsection, the term ‘qualified plug-in electric drive motor vehicle’ means any new qualified plug-in electric drive motor vehicle (as defined in section 30D, determined without regard to whether such vehicle is made by a manufacturer or whether the original use of such vehicle commences with the taxpayer). “(3) Credit allowed in addition to other credits.— The credit allowed under this subsection shall be allowed with respect to a motor vehicle notwithstanding whether a credit has been allowed with respect to such motor vehicle under this section (other than this subsection) in any preceding taxable year. “(4) Termination.— This subsection shall not apply to conversions made after December 31, 2011.” . (b) Credit Treated as Part of Alternative Motor Vehicle Credit.— Section 30B(a) 26 USC 30B. is amended by striking “and” at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting “, and”, and by adding at the end the following new paragraph: “(5) the plug-in conversion credit determined under subsection (i).” . (c) No Recapture for Vehicles Converted to Qualified Plug-in Electric Drive Motor Vehicles.— Paragraph (8) of section 30B(h) is amended by adding at the end the following: “, except that no benefit shall be recaptured if such property ceases to be eligible for such credit by reason of conversion to a qualified plug-in electric drive motor vehicle.”. (d) Effective Date.— The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act. SEC. 1144. TREATMENT OF ALTERNATIVE MOTOR VEHICLE CREDIT AS A PERSONAL CREDIT ALLOWED AGAINST AMT. (a) In General.— Paragraph (2) of section 30B(g) is amended to read as follows: “(2) Personal credit.— “(A) In general.— For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year. “(B) Limitation based on amount of tax.— In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall not exceed the excess of— “(i) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over “(ii) the sum of the credits allowable under subpart A (other than this section and sections 23, 25D, 30, and 30D) and section 27 for the taxable year.” . (b) Conforming Amendments.— (1) (A) Section 24(b)(3)(B), as amended by this Act, is amended by inserting “30B,” after “30,”. (B) Section 25(e)(1)(C)(ii), as amended by this Act, is amended by inserting “30B,” after “30,”. (C) Section 25B(g)(2), as amended by this Act, is amended by inserting “30B,” after “30,”. (D) Section 26(a)(1), as amended by this Act, is amended by inserting “30B,” after “30,”. (E) Section 904(i), as amended by this Act, is amended by inserting “30B,” after “30”. (F) Section 1400C(d)(2), as amended by this Act, is amended by striking “and 30” and inserting “30, and 30B”. (2) Section 30C(d)(2)(A), as amended by this Act, is amended by striking “sections 27 and 30B” and inserting “section 27”. (3) Section 55(c)(3) is amended by striking “30B(g)(2),”. (c) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 2008. (d) Application of EGTRRA Sunset.— The amendment made by subsection (b)(1)(A) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provision of such Act to which such amendment relates. PART VI— PARITY FOR TRANSPORTATION FRINGE BENEFITS SEC. 1151. INCREASED EXCLUSION AMOUNT FOR COMMUTER TRANSIT BENEFITS AND TRANSIT PASSES. (a) In General.— Paragraph (2) of section 132(f) 26 USC 132. is amended by adding at the end the following flush sentence: “In Applicability. the case of any month beginning on or after the date of the enactment of this sentence and before January 1, 2011, subparagraph (A) shall be applied as if the dollar amount therein were the same as the dollar amount in effect for such month under subparagraph (B).” . (b) Effective Date.— The amendment made by this section shall apply to months beginning on or after the date of the enactment of this section. Subtitle C— Tax Incentives for Business PART I— TEMPORARY INVESTMENT INCENTIVES SEC. 1201. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY ACQUIRED DURING 2009. (a) Extension of Special Allowance.— (1) In general.— Paragraph (2) of section 168(k) is amended— (A) by striking “January 1, 2010” and inserting “January 1, 2011”, and (B) by striking “January 1, 2009” each place it appears and inserting “January 1, 2010”. (2) Conforming amendments.— (A) The heading for subsection (k) of section 168 is amended by striking “January 1, 2009” and inserting “January 1, 2010”. (B) The heading for clause (ii) of section 168(k)(2)(B) is amended by striking “pre-january 1, 2009” and inserting “pre-january 1, 2010”. (C) Subparagraph (B) of section 168(l)(5) is amended by striking “January 1, 2009” and inserting “January 1, 2010”. (D) Subparagraph (C) of section 168(n)(2) is amended by striking “January 1, 2009” and inserting “January 1, 2010”. (E) Subparagraph (B) of section 1400N(d)(3) is amended by striking “January 1, 2009” and inserting “January 1, 2010”. (3) Technical amendments.— (A) Subparagraph (D) of section 168(k)(4) is amended— (i) by striking “and” at the end of clause (i), (ii) by redesignating clause (ii) as clause (iii), and (iii) by inserting after clause (i) the following new clause: “(ii) ‘April 1, 2008’ shall be substituted for ‘January 1, 2008’ in subparagraph (A)(iii)(I) thereof, and” . (B) Subparagraph (A) of section 6211(b)(4) 26 USC 6211. is amended by inserting “168(k)(4),” after “53(e),”. (b) Extension of Election to Accelerate the Amt and Research Credits in Lieu of Bonus Depreciation.— (1) In general.— Section 168(k)(4) (relating to election to accelerate the AMT and research credits in lieu of bonus depreciation) is amended— (A) by striking “2009” and inserting “2010”in subparagraph (D)(iii) (as redesignated by subsection (a)(3)), and (B) by adding at the end the following new subparagraph: “(H) Special rules for extension property.— “(i) Taxpayers previously electing acceleration.— In the case of a taxpayer who made the election under subparagraph (A) for its first taxable year ending after March 31, 2008— “(I) the taxpayer may elect not to have this paragraph apply to extension property, but “(II) if the taxpayer does not make the election under subclause (I), in applying this paragraph to the taxpayer a separate bonus depreciation amount, maximum amount, and maximum increase amount shall be computed and applied to eligible qualified property which is extension property and to eligible qualified property which is not extension property. “(ii) Taxpayers not previously electing acceleration.— In the case of a taxpayer who did not make the election under subparagraph (A) for its first taxable year ending after March 31, 2008— “(I) the taxpayer may elect to have this paragraph apply to its first taxable year ending after December 31, 2008, and each subsequent taxable year, and “(II) if the taxpayer makes the election under subclause (I), this paragraph shall only apply to eligible qualified property which is extension property. “(iii) Extension property.— For purposes of this subparagraph, the term ‘extension property’ means property which is eligible qualified property solely by reason of the extension of the application of the special allowance under paragraph (1) pursuant to the amendments made by section 1201(a) of the American Recovery and Reinvestment Tax Act of 2009 (and the application of such extension to this paragraph pursuant to the amendment made by section 1201(b)(1) of such Act).” . (2) Technical amendment.— Section 6211(b)(4)(A) is amended by inserting “168(k)(4),” after “53(e),”. (c) Effective Dates.— (1) In general.— Except as provided in paragraph (2), the amendments made by this section shall apply to property placed in service after December 31, 2008, in taxable years ending after such date. (2) Technical amendments.— The amendments made by subsections (a)(3) and (b)(2) shall apply to taxable years ending after March 31, 2008. SEC. 1202. TEMPORARY INCREASE IN LIMITATIONS ON EXPENSING OF CERTAIN DEPRECIABLE BUSINESS ASSETS. (a) In General.— Paragraph (7) of section 179(b) 26 USC 179. is amended— (1) by striking “2008” and inserting “2008, or 2009”, and (2) by striking “2008” in the heading thereof and inserting “2008, and 2009”. (b) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 2008. PART II— SMALL BUSINESS PROVISIONS SEC. 1211. 5-YEAR CARRYBACK OF OPERATING LOSSES OF SMALL BUSINESSES. (a) In General.— Subparagraph (H) of section 172(b)(1) is amended to read as follows: “(H) Carryback for 2008 net operating losses of small businesses.— “(i) In general.— If an eligible small business elects the application of this subparagraph with respect to an applicable 2008 net operating loss— “(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 “(III) subparagraph (F) shall not apply. “(ii) Applicable 2008 net operating loss.— For purposes of this subparagraph, the term ‘applicable 2008 net operating loss’ means— “(I) the taxpayer’s net operating loss for any taxable year ending in 2008, or “(II) if the taxpayer elects to have this subclause apply in lieu of subclause (I), the taxpayer’s net operating loss for any taxable year beginning in 2008. “(iii) Election.— 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 taxpayer’s return for the taxable year of the net operating loss. Any such election, once made, shall be irrevocable. Any election under this subparagraph may be made only with respect to 1 taxable year. “(iv) 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) Conforming Amendment.— Section 172 26 USC 172. is amended by striking subsection (k) and by redesignating subsection (l) as subsection (k). (c) Anti-Abuse 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. (d) Effective Date.— (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. (2) Transitional rule.— In the case of a net operating loss for a taxable year ending before the date of the enactment of this Act— (A) any election made under section 172(b)(3) of the Internal Revenue Code of 1986 with respect to such loss may (notwithstanding such section) be revoked before the applicable date, (B) any election made under section 172(b)(1)(H) of such Code with respect to such loss shall (notwithstanding such section) be treated as timely made if made before the applicable date, and (C) any application under section 6411(a) of such Code with respect to such loss shall be treated as timely filed if filed before the applicable date. For Definition. purposes of this paragraph, the term “applicable date” means the date which is 60 days after the date of the enactment of this Act. SEC. 1212. DECREASED REQUIRED ESTIMATED TAX PAYMENTS IN 2009 FOR CERTAIN SMALL BUSINESSES.   Paragraph (1) of section 6654(d) is amended by adding at the end the following new subparagraph: “(D) Special rule for 2009.— “(i) In general.— Notwithstanding subparagraph (C), in the case of any taxable year beginning in 2009, clause (ii) of subparagraph (B) shall be applied to any qualified individual by substituting ‘90 percent’ for ‘100 percent’. “(ii) Qualified individual.— For purposes of this subparagraph, the term ‘qualified individual’ means any individual if— “(I) the adjusted gross income shown on the return of such individual for the preceding taxable year is less than $500,000, and “(II) such individual certifies that more than 50 percent of the gross income shown on the return of such individual for the preceding taxable year was income from a small business. A certification under subclause (II) shall be in such form and manner and filed at such time as the Secretary may by regulations prescribe. “(iii) Income from a small business.— For purposes of clause (ii), income from a small business means, with respect to any individual, income from a trade or business the average number of employees of which was less than 500 employees for the calendar year ending with or within the preceding taxable year of the individual. “(iv) Separate returns.— In the case of a married individual (within the meaning of section 7703) who files a separate return for the taxable year for which the amount of the installment is being determined, clause (ii)(I) shall be applied by substituting ‘$250,000’ for ‘$500,000’. “(v) Estates and trusts.— In the case of an estate or trust, adjusted gross income shall be determined as provided in section 67(e).” . PART III— INCENTIVES FOR NEW JOBS SEC. 1221. INCENTIVES TO HIRE UNEMPLOYED VETERANS AND DISCONNECTED YOUTH. (a) In General.— Subsection (d) of section 51 26 USC 51. is amended by adding at the end the following new paragraph: “(14) Credit allowed for unemployed veterans and disconnected youth hired in 2009 or 2010.— “(A) In general.— Any unemployed veteran or disconnected youth who begins work for the employer during 2009 or 2010 shall be treated as a member of a targeted group for purposes of this subpart. “(B) Definitions.— For purposes of this paragraph— “(i) Unemployed veteran.— The term ‘unemployed veteran’ means any veteran (as defined in paragraph (3)(B), determined without regard to clause (ii) thereof) who is certified by the designated local agency as— “(I) having been discharged or released from active duty in the Armed Forces at any time during the 5-year period ending on the hiring date, and “(II) being in receipt of unemployment compensation under State or Federal law for not less than 4 weeks during the 1-year period ending on the hiring date. “(ii) Disconnected youth.— The term ‘disconnected youth’ means any individual who is certified by the designated local agency— “(I) as having attained age 16 but not age 25 on the hiring date, “(II) as not regularly attending any secondary, technical, or post-secondary school during the 6-month period preceding the hiring date, “(III) as not regularly employed during such 6-month period, and “(IV) as not readily employable by reason of lacking a sufficient number of basic skills.” . (b) Effective Date.— The amendments made by this section shall apply to individuals who begin work for the employer after December 31, 2008. PART IV— RULES RELATING TO DEBT INSTRUMENTS SEC. 1231. DEFERRAL AND RATABLE INCLUSION OF INCOME ARISING FROM BUSINESS INDEBTEDNESS DISCHARGED BY THE REACQUISITION OF A DEBT INSTRUMENT. (a) In General.— Section 108 26 USC 108. (relating to income from discharge of indebtedness) is amended by adding at the end the following new subsection: “(i) Deferral and Ratable Inclusion of Income Arising From Business Indebtedness Discharged by the Reacquisition of a Debt Instrument.— “(1) In general.— At the Time periods. election of the taxpayer, income from the discharge of indebtedness in connection with the reacquisition after December 31, 2008, and before January 1, 2011, of an applicable debt instrument shall be includible in gross income ratably over the 5-taxable-year period beginning with— “(A) in the case of a reacquisition occurring in 2009, the fifth taxable year following the taxable year in which the reacquisition occurs, and “(B) in the case of a reacquisition occurring in 2010, the fourth taxable year following the taxable year in which the reacquisition occurs. “(2) Deferral of deduction for original issue discount in debt for debt exchanges.— “(A) In general.— If, as part of a reacquisition to which paragraph (1) applies, any debt instrument is issued for the applicable debt instrument being reacquired (or is treated as so issued under subsection (e)(4) and the regulations thereunder) and there is any original issue discount determined under subpart A of part V of subchapter P of this chapter with respect to the debt instrument so issued— “(i) except as provided in clause (ii), no deduction otherwise allowable under this chapter shall be allowed to the issuer of such debt instrument with respect to the portion of such original issue discount which— “(I) accrues before the 1st taxable year in the 5-taxable-year period in which income from the discharge of indebtedness attributable to the reacquisition of the debt instrument is includible under paragraph (1), and “(II) does not exceed the income from the discharge of indebtedness with respect to the debt instrument being reacquired, and “(ii) the aggregate amount of deductions disallowed under clause (i) shall be allowed as a deduction ratably over the 5-taxable-year period described in clause (i)(I). If the amount of the original issue discount accruing before such 1st taxable year exceeds the income from the discharge of indebtedness with respect to the applicable debt instrument being reacquired, the deductions shall be disallowed in the order in which the original issue discount is accrued. “(B) Deemed debt for debt exchanges.— For purposes of subparagraph (A), if any debt instrument is issued by an issuer and the proceeds of such debt instrument are used directly or indirectly by the issuer to reacquire an applicable debt instrument of the issuer, the debt instrument so issued shall be treated as issued for the debt instrument being reacquired. Regulations. Applicability. If only a portion of the proceeds from a debt instrument are so used, the rules of subparagraph (A) shall apply to the portion of any original issue discount on the newly issued debt instrument which is equal to the portion of the proceeds from such instrument used to reacquire the outstanding instrument. “(3) Applicable debt instrument.— For purposes of this subsection— “(A) Applicable debt instrument.— The term ‘applicable debt instrument’ means any debt instrument which was issued by— “(i) a C corporation, or “(ii) any other person in connection with the conduct of a trade or business by such person. “(B) Debt instrument.— The term ‘debt instrument’ means a bond, debenture, note, certificate, or any other instrument or contractual arrangement constituting indebtedness (within the meaning of section 1275(a)(1)). “(4) Reacquisition.— For purposes of this subsection— “(A) In general.— The term ‘reacquisition’ means, with respect to any applicable debt instrument, any acquisition of the debt instrument by— “(i) the debtor which issued (or is otherwise the obligor under) the debt instrument, or “(ii) a related person to such debtor. “(B) Acquisition.— The term ‘acquisition’ shall, with respect to any applicable debt instrument, include an acquisition of the debt instrument for cash, the exchange of the debt instrument for another debt instrument (including an exchange resulting from a modification of the debt instrument), the exchange of the debt instrument for corporate stock or a partnership interest, and the contribution of the debt instrument to capital. Such term shall also include the complete forgiveness of the indebtedness by the holder of the debt instrument. “(5) Other definitions and rules.— For purposes of this subsection— “(A) Related person.— The determination of whether a person is related to another person shall be made in the same manner as under subsection (e)(4). “(B) Election.— “(i) In general.— An election under this subsection with respect to any applicable debt instrument shall be made by including with the return of tax imposed by chapter 1 for the taxable year in which the reacquisition of the debt instrument occurs a statement which— “(I) clearly identifies such instrument, and “(II) includes the amount of income to which paragraph (1) applies and such other information as the Secretary may prescribe. “(ii) Election irrevocable.— Such election, once made, is irrevocable. “(iii) Pass-thru entities.— In the case of a partnership, S corporation, or other pass-thru entity, the election under this subsection shall be made by the partnership, the S corporation, or other entity involved. “(C) Coordination with other exclusions.— If a taxpayer elects to have this subsection apply to an applicable debt instrument, subparagraphs (A), (B), (C), and (D) of subsection (a)(1) shall not apply to the income from the discharge of such indebtedness for the taxable year of the election or any subsequent taxable year. “(D) Acceleration of deferred items.— “(i) In general.— In the case of the death of the taxpayer, the liquidation or sale of substantially all the assets of the taxpayer (including in a title 11 or similar case), the cessation of business by the taxpayer, or similar circumstances, any item of income or deduction which is deferred under this subsection (and has not previously been taken into account) shall be taken into account in the taxable year in which such event occurs (or in the case of a title 11 or similar case, the day before the petition is filed). “(ii) Special rule for pass-thru entities.— The rule of clause (i) shall also apply in the case of the sale or exchange or redemption of an interest in a partnership, S corporation, or other pass- thru entity by a partner, shareholder, or other person holding an ownership interest in such entity. “(6) Special rule for partnerships.— In the case of a partnership, any income deferred under this subsection shall be allocated to the partners in the partnership immediately before the discharge in the manner such amounts would have been included in the distributive shares of such partners under section 704 if such income were recognized at such time. Any decrease in a partner’s share of partnership liabilities as a result of such discharge shall not be taken into account for purposes of section 752 at the time of the discharge to the extent it would cause the partner to recognize gain under section 731. Any decrease in partnership liabilities deferred under the preceding sentence shall be taken into account by such partner at the same time, and to the extent remaining in the same amount, as income deferred under this subsection is recognized. “(7) Secretarial authority.— The Secretary may prescribe such regulations, rules, or other guidance as may be necessary or appropriate for purposes of applying this subsection, including— “(A) extending the application of the rules of paragraph (5)(D) to other circumstances where appropriate, “(B) requiring reporting of the election (and such other information as the Secretary may require) on returns of tax for subsequent taxable years, and “(C) rules for the application of this subsection to partnerships, S corporations, and other pass-thru entities, including for the allocation of deferred deductions.” . (b) Effective Date.— The amendments made by this section shall apply to discharges in taxable years ending after December 31, 2008. SEC. 1232. MODIFICATIONS OF RULES FOR ORIGINAL ISSUE DISCOUNT ON CERTAIN HIGH YIELD OBLIGATIONS. (a) Suspension of Special Rules.— Section 163(e)(5) 26 USC 163. (relating to special rules for original issue discount on certain high yield obligations) is amended by redesignating subparagraph (F) as subparagraph (G) and by inserting after subparagraph (E) the following new subparagraph: “(F) Suspension of application of paragraph.— “(i) Temporary suspension.— This Time period. paragraph shall not apply to any applicable high yield discount obligation issued during the period beginning on September 1, 2008, and ending on December 31, 2009, in exchange (including an exchange resulting from a modification of the debt instrument) for an obligation which is not an applicable high yield discount obligation and the issuer (or obligor) of which is the same as the issuer (or obligor) of such applicable high yield discount obligation. The preceding sentence shall not apply to any obligation the interest on which is interest described in section 871(h)(4) (without regard to subparagraph (D) thereof) or to any obligation issued to a related person (within the meaning of section 108(e)(4)). “(ii) Successive application.— Any obligation to which clause (i) applies shall not be treated as an applicable high yield discount obligation for purposes of applying this subparagraph to any other obligation issued in exchange for such obligation. “(iii) Secretarial authority to suspend application.— The Secretary may apply this paragraph with respect to debt instruments issued in periods following the period described in clause (i) if the Secretary determines that such application is appropriate in light of distressed conditions in the debt capital markets.” . (b) Interest Rate Used in Determining High Yield Obligations.— The last sentence of section 163(i)(1) is amended— (1) by inserting “(i)” after “regulation”, and (2) by inserting “, or (ii) permit, on a temporary basis, a rate to be used with respect to any debt instrument which is higher than the applicable Federal rate if the Secretary determines that such rate is appropriate in light of distressed conditions in the debt capital markets” before the period at the end. (c) Effective Date.— (1) Suspension.— The amendments made by subsection (a) shall apply to obligations issued after August 31, 2008, in taxable years ending after such date. (2) Interest rate authority.— The amendments made by subsection (b) shall apply to obligations issued after December 31, 2009, in taxable years ending after such date. PART V— QUALIFIED SMALL BUSINESS STOCK SEC. 1241. SPECIAL RULES APPLICABLE TO QUALIFIED SMALL BUSINESS STOCK FOR 2009 AND 2010. (a) In General.— Section 1202(a) is amended by adding at the end the following new paragraph: “(3) Special rules for 2009 and 2010.— In the case of qualified small business stock acquired after the date of the enactment of this paragraph and before January 1, 2011— “(A) paragraph (1) shall be applied by substituting ‘75 percent’ for ‘50 percent’, and “(B) paragraph (2) shall not apply.” . (b) Effective Date.— The amendment made by this section shall apply to stock acquired after the date of the enactment of this Act. PART VI— S CORPORATIONS SEC. 1251. TEMPORARY REDUCTION IN RECOGNITION PERIOD FOR BUILT-IN GAINS TAX. (a) In General.— Paragraph (7) of section 1374(d) 26 USC 1374. (relating to definitions and special rules) is amended to read as follows: “(7) Recognition period.— “(A) In general.— The term ‘recognition period’ means the 10-year period beginning with the 1st day of the 1st taxable year for which the corporation was an S corporation. “(B) Special rule for 2009 and 2010.— In the case of any taxable year beginning in 2009 or 2010, no tax shall be imposed on the net recognized built-in gain of an S corporation if the 7th taxable year in the recognition period preceded such taxable year. Applicability. The preceding sentence shall be applied separately with respect to any asset to which paragraph (8) applies. “(C) Special rule for distributions to shareholders.— For purposes of applying this section to any amount includible in income by reason of distributions to shareholders pursuant to section 593(e)— “(i) subparagraph (A) shall be applied without regard to the phrase ‘10-year’, and “(ii) subparagraph (B) shall not apply.” . (b) Effective Date.— The amendment made by this section shall apply to taxable years beginning after December 31, 2008. PART VII— RULES RELATING TO OWNERSHIP CHANGES SEC. 1261. CLARIFICATION OF REGULATIONS RELATED TO LIMITATIONS ON CERTAIN BUILT-IN LOSSES FOLLOWING AN OWNERSHIP CHANGE. (a) Findings.— Congress finds as follows: (1) The delegation of authority to the Secretary of the Treasury under section 382(m) of the Internal Revenue Code of 1986 does not authorize the Secretary to provide exemptions or special rules that are restricted to particular industries or classes of taxpayers. (2) Internal Revenue Service Notice 2008–83 is inconsistent with the congressional intent in enacting such section 382(m). (3) The legal authority to prescribe Internal Revenue Service Notice 2008–83 is doubtful. (4) However, as taxpayers should generally be able to rely on guidance issued by the Secretary of the Treasury legislation is necessary to clarify the force and effect of Internal Revenue Service Notice 2008–83 and restore the proper application under the Internal Revenue Code of 1986 of the limitation on built-in losses following an ownership change of a bank. (b) Determination of Force and Effect of Internal Revenue Service Notice 2008–83 Exempting Banks From Limitation on Certain Built–in Losses Following Ownership Change.— (1) In general.— Internal Revenue Service Notice 2008–83— (A) shall be deemed to have the force and effect of law with respect to any ownership change (as defined in section 382(g) of the Internal Revenue Code of 1986) occurring on or before January 16, 2009, and (B) shall have no force or effect with respect to any ownership change after such date. (2) Binding contracts.— Notwithstanding paragraph (1), Internal Revenue Service Notice 2008–83 shall have the force and effect of law with respect to any ownership change (as so defined) which occurs after January 16, 2009, if such change— (A) is pursuant to a written binding contract entered into on or before such date, or (B) is pursuant to a written agreement entered into on or before such date and such agreement was described on or before such date in a public announcement or in a filing with the Securities and Exchange Commission required by reason of such ownership change. SEC. 1262. TREATMENT OF CERTAIN OWNERSHIP CHANGES FOR PURPOSES OF LIMITATIONS ON NET OPERATING LOSS CARRYFORWARDS AND CERTAIN BUILT-IN LOSSES. (a) In General.— Section 382 26 USC 382. is amended by adding at the end the following new subsection: “(n) Special Rule for Certain Ownership Changes.— “(1) In general.— The limitation contained in subsection (a) shall not apply in the case of an ownership change which is pursuant to a restructuring plan of a taxpayer which— “(A) is required under a loan agreement or a commitment for a line of credit entered into with the Department of the Treasury under the Emergency Economic Stabilization Act of 2008, and “(B) is intended to result in a rationalization of the costs, capitalization, and capacity with respect to the manufacturing workforce of, and suppliers to, the taxpayer and its subsidiaries. “(2) Subsequent acquisitions.— Paragraph (1) shall not apply in the case of any subsequent ownership change unless such ownership change is described in such paragraph. “(3) Limitation based on control in corporation.— “(A) In general.— Paragraph (1) shall not apply in the case of any ownership change if, immediately after such ownership change, any person (other than a voluntary employees’ beneficiary association under section 501(c)(9)) owns stock of the new loss corporation possessing 50 percent or more of the total combined voting power of all classes of stock entitled to vote, or of the total value of the stock of such corporation. “(B) Treatment of related persons.— “(i) In general.— Related persons shall be treated as a single person for purposes of this paragraph. “(ii) Related persons.— For purposes of clause (i), a person shall be treated as related to another person if— “(I) such person bears a relationship to such other person described in section 267(b) or 707(b), or “(II) such persons are members of a group of persons acting in concert.” . (b) Effective Date.— The amendment made by this section shall apply to ownership changes after the date of the enactment of this Act. Subtitle D— Manufacturing Recovery Provisions SEC. 1301. TEMPORARY EXPANSION OF AVAILABILITY OF INDUSTRIAL DEVELOPMENT BONDS TO FACILITIES MANUFACTURING INTANGIBLE PROPERTY. (a) In General.— Subparagraph (C) of section 144(a)(12) 26 USC 144. is amended— (1) by striking “For purposes of this paragraph, the term” and inserting “For purposes of this paragraph— “(i) In general.— The term” , and (2) by striking the last sentence and inserting the following new clauses: “(ii) Certain facilities included.— Such term includes facilities which are directly related and ancillary to a manufacturing facility (determined without regard to this clause) if— “(I) such facilities are located on the same site as the manufacturing facility, and “(II) not more than 25 percent of the net proceeds of the issue are used to provide such facilities. “(iii) Special rules for bonds issued in 2009 and 2010.— In the case of any issue made after the date of enactment of this clause and before January 1, 2011, clause (ii) shall not apply and the net proceeds from a bond shall be considered to be used to provide a manufacturing facility if such proceeds are used to provide— “(I) a facility which is used in the creation or production of intangible property which is described in section 197(d)(1)(C)(iii), or “(II) a facility which is functionally related and subordinate to a manufacturing facility (determined without regard to this subclause) if such facility is located on the same site as the manufacturing facility.” . (b) Effective Date.— The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act. SEC. 1302. CREDIT FOR INVESTMENT IN ADVANCED ENERGY FACILITIES. (a) In General.— Section 46 26 USC 46. (relating to amount of credit) is amended by striking “and” at the end of paragraph (3), by striking the period at the end of paragraph (4), and by adding at the end the following new paragraph: “(5) the qualifying advanced energy project credit.” . (b) Amount of Credit.— Subpart E of part IV of subchapter A of chapter 1 (relating to rules for computing investment credit) is amended by inserting after section 48B the following new section: “SEC. 48C. QUALIFYING ADVANCED ENERGY PROJECT CREDIT. “(a) In General.— For purposes of section 46, the qualifying advanced energy project credit for any taxable year is an amount equal to 30 percent of the qualified investment for such taxable year with respect to any qualifying advanced energy project of the taxpayer. “(b) Qualified Investment.— “(1) In general.— For purposes of subsection (a), the qualified investment for any taxable year is the basis of eligible property placed in service by the taxpayer during such taxable year which is part of a qualifying advanced energy project. “(2) Certain qualified progress expenditures rules made applicable.— Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this section. “(3) Limitation.— The amount which is treated for all taxable years with respect to any qualifying advanced energy project shall not exceed the amount designated by the Secretary as eligible for the credit under this section. “(c) Definitions.— “(1) Qualifying advanced energy project.— “(A) In general.— The term ‘qualifying advanced energy project’ means a project— “(i) which re-equips, expands, or establishes a manufacturing facility for the production of— “(I) property designed to be used to produce energy from the sun, wind, geothermal deposits (within the meaning of section 613(e)(2)), or other renewable resources, “(II) fuel cells, microturbines, or an energy storage system for use with electric or hybrid-electric motor vehicles, “(III) electric grids to support the transmission of intermittent sources of renewable energy, including storage of such energy, “(IV) property designed to capture and sequester carbon dioxide emissions, “(V) property designed to refine or blend renewable fuels or to produce energy conservation technologies (including energy-conserving lighting technologies and smart grid technologies), “(VI) new qualified plug-in electric drive motor vehicles (as defined by section 30D), qualified plug-in electric vehicles (as defined by section 30(d)), or components which are designed specifically for use with such vehicles, including electric motors, generators, and power control units, or “(VII) other advanced energy property designed to reduce greenhouse gas emissions as may be determined by the Secretary, and “(ii) any portion of the qualified investment of which is certified by the Secretary under subsection (d) as eligible for a credit under this section. “(B) Exception.— Such term shall not include any portion of a project for the production of any property which is used in the refining or blending of any transportation fuel (other than renewable fuels). “(2) Eligible property.— The term ‘eligible property’ means any property— “(A) which is necessary for the production of property described in paragraph (1)(A)(i), “(B) which is— “(i) tangible personal property, or “(ii) other tangible property (not including a building or its structural components), but only if such property is used as an integral part of the qualified investment credit facility, and “(C) with respect to which depreciation (or amortization in lieu of depreciation) is allowable. “(d) Qualifying Advanced Energy Project Program.— “(1) Establishment.— “(A) In general.— Not later Deadline. than 180 days after the date of enactment of this section, the Secretary, in consultation with the Secretary of Energy, shall establish a qualifying advanced energy project program to consider and award certifications for qualified investments eligible for credits under this section to qualifying advanced energy project sponsors. “(B) Limitation.— The total amount of credits that may be allocated under the program shall not exceed $2,300,000,000. “(2) Certification.— “(A) Application period.— Each applicant for certification under this paragraph shall submit an application containing such information as the Secretary may require during the 2-year period beginning on the date the Secretary establishes the program under paragraph (1). “(B) Time to meet criteria for certification.— Each applicant for certification shall have 1 year from the date of acceptance by the Secretary of the application during which to provide to the Secretary evidence that the requirements of the certification have been met. “(C) Period of issuance.— An applicant which receives a certification shall have 3 years from the date of issuance of the certification in order to place the project in service and if such project is not placed in service by that time period, then the certification shall no longer be valid. “(3) Selection criteria.— In determining which qualifying advanced energy projects to certify under this section, the Secretary— “(A) shall take into consideration only those projects where there is a reasonable expectation of commercial viability, and “(B) shall take into consideration which projects— “(i) will provide the greatest domestic job creation (both direct and indirect) during the credit period, “(ii) will provide the greatest net impact in avoiding or reducing air pollutants or anthropogenic emissions of greenhouse gases, “(iii) have the greatest potential for technological innovation and commercial deployment, “(iv) have the lowest levelized cost of generated or stored energy, or of measured reduction in energy consumption or greenhouse gas emission (based on costs of the full supply chain), and “(v) have the shortest project time from certification to completion. “(4) Review and redistribution.— “(A) Review.— Not later than 4 years after the date of enactment of this section, the Secretary shall review the credits allocated under this section as of such date. “(B) Redistribution.— The Secretary may reallocate credits awarded under this section if the Secretary determines that— “(i) there is an insufficient quantity of qualifying applications for certification pending at the time of the review, or “(ii) any certification made pursuant to paragraph (2) has been revoked pursuant to paragraph (2)(B) because the project subject to the certification has been delayed as a result of third party opposition or litigation to the proposed project. “(C) Reallocation.— If the Secretary determines that credits under this section are available for reallocation pursuant to the requirements set forth in paragraph (2), the Secretary is authorized to conduct an additional program for applications for certification. “(5) Disclosure of allocations.— The Secretary shall, upon making a certification under this subsection, publicly disclose the identity of the applicant and the amount of the credit with respect to such applicant. “(e) Denial of Double Benefit.— A credit shall not be allowed under this section for any qualified investment for which a credit is allowed under section 48, 48A, or 48B.” . (c) Conforming Amendments.— (1) Section 49(a)(1)(C) 26 USC 49. is amended by striking “and” at the end of clause (iii), by striking the period at the end of clause (iv) and inserting “, and”, and by adding after clause (iv) the following new clause: “(v) the basis of any property which is part of a qualifying advanced energy project under section 48C.” . (2) The table of sections for subpart E of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 48B the following new item: “48C. Qualifying advanced energy project credit.”. (d) Effective Date.— The amendments made by this section shall apply to periods after the date of the enactment of this Act, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990). Subtitle E— Economic Recovery Tools SEC. 1401. RECOVERY ZONE BONDS. (a) In General.— Subchapter Y of chapter 1 is amended by adding at the end the following new part: “PART III— RECOVERY ZONE BONDS “Sec. 1400U–1.  Allocation of recovery zone bonds. “Sec. 1400U–2.  Recovery zone economic development bonds. “Sec. 1400U–3.  Recovery zone facility bonds. “SEC. 1400U–1. ALLOCATION OF RECOVERY ZONE BONDS. “(a) Allocations.— “(1) In general.— “(A) General allocation.— The Secretary shall allocate the national recovery zone economic development bond limitation and the national recovery zone facility bond limitation among the States in the proportion that each such State’s 2008 State employment decline bears to the aggregate of the 2008 State employment declines for all of the States. “(B) Minimum allocation.— The Secretary shall adjust the allocations under subparagraph (A) for any calendar year for each State to the extent necessary to ensure that no State receives less than 0.9 percent of the national recovery zone economic development bond limitation and 0.9 percent of the national recovery zone facility bond limitation. “(2) 2008 state employment decline.— For purposes of this subsection, the term ‘2008 State employment decline’ means, with respect to any State, the excess (if any) of— “(A) the number of individuals employed in such State determined for December 2007, over “(B) the number of individuals employed in such State determined for December 2008. “(3) Allocations by states.— “(A) In general.— Each State with respect to which an allocation is made under paragraph (1) shall reallocate such allocation among the counties and large municipalities in such State in the proportion to each such county’s or municipality’s 2008 employment decline bears to the aggregate of the 2008 employment declines for all the counties and municipalities in such State. Waiver authority. A county or municipality may waive any portion of an allocation made under this subparagraph. “(B) Large municipalities.— For purposes of subparagraph (A), the term ‘large municipality’ means a municipality with a population of more than 100,000. “(C) Determination of local employment declines.— For purposes of this paragraph, the employment decline of any municipality or county shall be determined in the same manner as determining the State employment decline under paragraph (2), except that in the case of a municipality any portion of which is in a county, such portion shall be treated as part of such municipality and not part of such county. “(4) National limitations.— “(A) Recovery zone economic development bonds.— There is a national recovery zone economic development bond limitation of $10,000,000,000. “(B) Recovery zone facility bonds.— There is a national recovery zone facility bond limitation of $15,000,000,000. “(b) Recovery Zone.— For purposes of this part, the term ‘recovery zone’ means— “(1) any area designated by the issuer as having significant poverty, unemployment, rate of home foreclosures, or general distress, “(2) any area designated by the issuer as economically distressed by reason of the closure or realignment of a military installation pursuant to the Defense Base Closure and Realignment Act of 1990, and “(3) any area for which a designation as an empowerment zone or renewal community is in effect. “SEC. 1400U–2. RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS. “(a) In General.— In the case of a recovery zone economic development bond— “(1) such bond shall be treated as a qualified bond for purposes of section 6431, and “(2) subsection (b) of such section shall be applied by substituting ‘45 percent’ for ‘35 percent’. “(b) Recovery Zone Economic Development Bond.— “(1) In general.— For purposes of this section, the term ‘recovery zone economic development bond’ means any build America bond (as defined in section 54AA(d)) issued before January 1, 2011, as part of issue if— “(A) 100 percent of the excess of— “(i) the available project proceeds (as defined in section 54A) of such issue, over “(ii) the amounts in a reasonably required reserve (within the meaning of section 150(a)(3)) with respect to such issue, are to be used for one or more qualified economic development purposes, and “(B) the issuer designates such bond for purposes of this section. “(2) Limitation on amount of bonds designated.— The maximum aggregate face amount of bonds which may be designated by any issuer under paragraph (1) shall not exceed the amount of the recovery zone economic development bond limitation allocated to such issuer under section 1400U–1. “(c) Qualified Economic Development Purpose.— For purposes of this section, the term ‘qualified economic development purpose’ means expenditures for purposes of promoting development or other economic activity in a recovery zone, including— “(1) capital expenditures paid or incurred with respect to property located in such zone, “(2) expenditures for public infrastructure and construction of public facilities, and “(3) expenditures for job training and educational programs. “SEC. 1400U–3. RECOVERY ZONE FACILITY BONDS. “(a) In General.— For purposes of part IV of subchapter B (relating to tax exemption requirements for State and local bonds), the term ‘exempt facility bond’ includes any recovery zone facility bond. “(b) Recovery Zone Facility Bond.— “(1) In general.— For purposes of this section, the term ‘recovery zone facility bond’ means any bond issued as part of an issue if— “(A) 95 percent or more of the net proceeds (as defined in section 150(a)(3)) of such issue are to be used for recovery zone property, “(B) such bond is issued before January 1, 2011, and “(C) the issuer designates such bond for purposes of this section. “(2) Limitation on amount of bonds designated.— The maximum aggregate face amount of bonds which may be designated by any issuer under paragraph (1) shall not exceed the amount of recovery zone facility bond limitation allocated to such issuer under section 1400U–1. “(c) Recovery Zone Property.— For purposes of this section— “(1) In general.— The term ‘recovery zone property’ means any property to which section 168 applies (or would apply but for section 179) if— “(A) such property was constructed, reconstructed, renovated, or acquired by purchase (as defined in section 179(d)(2)) by the taxpayer after the date on which the designation of the recovery zone took effect, “(B) the original use of which in the recovery zone commences with the taxpayer, and “(C) substantially all of the use of which is in the recovery zone and is in the active conduct of a qualified business by the taxpayer in such zone. “(2) Qualified business.— The term ‘qualified business’ means any trade or business except that— “(A) the rental to others of real property located in a recovery zone shall be treated as a qualified business only if the property is not residential rental property (as defined in section 168(e)(2)), and “(B) such term shall not include any trade or business consisting of the operation of any facility described in section 144(c)(6)(B). “(3) Special rules for substantial renovations and sale-leaseback.— Rules similar Applicability. to the rules of subsections (a)(2) and (b) of section 1397D shall apply for purposes of this subsection. “(d) Nonapplication of Certain Rules.— Sections 146 (relating to volume cap) and 147(d) (relating to acquisition of existing property not permitted) shall not apply to any recovery zone facility bond.” . (b) Clerical Amendment.— The table of parts for subchapter Y of chapter 1 of such Code is amended by adding at the end the following new item: “Part III. Recovery Zone Bonds.”. (c) Effective Date.— The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act. SEC. 1402. TRIBAL ECONOMIC DEVELOPMENT BONDS. (a) In General.— Section 7871 26 USC 7871. is amended by adding at the end the following new subsection: “(f) Tribal Economic Development Bonds.— “(1) Allocation of limitation.— “(A) In general.— The Secretary shall allocate the national tribal economic development bond limitation among the Indian tribal governments in such manner as the Secretary, in consultation with the Secretary of the Interior, determines appropriate. “(B) National limitation.— There is a national tribal economic development bond limitation of $2,000,000,000. “(2) Bonds treated as exempt from tax.— In the case of a tribal economic development bond— “(A) notwithstanding subsection (c), such bond shall be treated for purposes of this title in the same manner as if such bond were issued by a State, “(B) the Indian tribal government issuing such bond and any instrumentality of such Indian tribal government shall be treated as a State for purposes of section 141, and “(C) section 146 shall not apply. “(3) Tribal economic development bond.— “(A) In general.— For purposes of this section, the term ‘tribal economic development bond’ means any bond issued by an Indian tribal government— “(i) the interest on which would be exempt from tax under section 103 if issued by a State or local government, and “(ii) which is designated by the Indian tribal government as a tribal economic development bond for purposes of this subsection. “(B) Exceptions.— Such term shall not include any bond issued as part of an issue if any portion of the proceeds of such issue are used to finance— “(i) any portion of a building in which class II or class III gaming (as defined in section 4 of the Indian Gaming Regulatory Act) is conducted or housed or any other property actually used in the conduct of such gaming, or “(ii) any facility located outside the Indian reservation (as defined in section 168(j)(6)). “(C) Limitation on amount of bonds designated.— The maximum aggregate face amount of bonds which may be designated by any Indian tribal government under subparagraph (A) shall not exceed the amount of national tribal economic development bond limitation allocated to such government under paragraph (1).” . (b) Study.— The Secretary of the Treasury, or the Secretary’s delegate, shall conduct a study of the effects of the amendment made by subsection (a). Deadline. Reports. Not later than 1 year after the date of the enactment of this Act, the Secretary of the Treasury, or the Secretary’s delegate, shall report to Congress on the results of the study conducted under this paragraph, including the Secretary’s recommendations regarding such amendment. (c) Effective Date.— The amendment made by subsection (a) shall apply to obligations issued after the date of the enactment of this Act. SEC. 1403. INCREASE IN NEW MARKETS TAX CREDIT. (a) In General.— Section 45D(f)(1) 26 USC 45. is amended— (1) by striking “and” at the end of subparagraph (C), (2) by striking “, 2007, 2008, and 2009.” in subparagraph (D), and inserting “and 2007,”, and (3) by adding at the end the following new subparagraphs: “(E) $5,000,000,000 for 2008, and “(F) $5,000,000,000 for 2009.” . (b) Special Rule for Allocation of Increased 2008 Limitation.— The amount of the increase in the new markets tax credit limitation for calendar year 2008 by reason of the amendments made by subsection (a) shall be allocated in accordance with section 45D(f)(2) of the Internal Revenue Code of 1986 to qualified community development entities (as defined in section 45D(c) of such Code) which— (1) submitted an allocation application with respect to calendar year 2008, and (2) (A) did not receive an allocation for such calendar year, or (B) received an allocation for such calendar year in an amount less than the amount requested in the allocation application. SEC. 1404. COORDINATION OF LOW-INCOME HOUSING CREDIT AND LOW-INCOME HOUSING GRANTS.   Subsection (i) of section 42 is amended by adding at the end the following new paragraph: “(9) Coordination with low-income housing grants.— “(A) Reduction in state housing credit ceiling for low-income housing grants received in 2009.— For purposes of this section, the amounts described in clauses (i) through (iv) of subsection (h)(3)(C) with respect to any State for 2009 shall each be reduced by so much of such amount as is taken into account in determining the amount of any grant to such State under section 1602 of the American Recovery and Reinvestment Tax Act of 2009. “(B) Special rule for basis.— Basis of a qualified low-income building shall not be reduced by the amount of any grant described in subparagraph (A).” . Subtitle F— Infrastructure Financing Tools PART I— IMPROVED MARKETABILITY FOR TAX-EXEMPT BONDS SEC. 1501. DE MINIMIS SAFE HARBOR EXCEPTION FOR TAX-EXEMPT INTEREST EXPENSE OF FINANCIAL INSTITUTIONS. (a) In General.— Subsection (b) of section 265 26 USC 265. is amended by adding at the end the following new paragraph: “(7) De minimis exception for bonds issued during 2009 or 2010.— “(A) In general.— In applying paragraph (2)(A), there shall not be taken into account tax-exempt obligations issued during 2009 or 2010. “(B) Limitation.— The amount of tax-exempt obligations not taken into account by reason of subparagraph (A) shall not exceed 2 percent of the amount determined under paragraph (2)(B). “(C) Refundings.— For purposes of this paragraph, a refunding bond (whether a current or advance refunding) shall be treated as issued on the date of the issuance of the refunded bond (or in the case of a series of refundings, the original bond).” . (b) Treatment as Financial Institution Preference Item.— Clause (iv) of section 291(e)(1)(B) is amended by adding at the end the following: “That portion of any obligation not taken into account under paragraph (2)(A) of section 265(b) by reason of paragraph (7) of such section shall be treated for purposes of this section as having been acquired on August 7, 1986.”. (c) Effective Date.— The amendments made by this section shall apply to obligations issued after December 31, 2008. SEC. 1502. MODIFICATION OF SMALL ISSUER EXCEPTION TO TAX-EXEMPT INTEREST EXPENSE ALLOCATION RULES FOR FINANCIAL INSTITUTIONS. (a) In General.— Paragraph (3) of section 265(b) (relating to exception for certain tax-exempt obligations) is amended by adding at the end the following new subparagraph: “(G) Special rules for obligations issued during 2009 and 2010.— “(i) Increase in limitation.— In the Applicability. case of obligations issued during 2009 or 2010, subparagraphs (C)(i), (D)(i), and (D)(iii)(II) shall each be applied by substituting ‘$30,000,000’ for ‘$10,000,000’. “(ii) Qualified 501(c)(3) bonds treated as issued by exempt organization.— In the Applicability. case of a qualified 501(c)(3) bond (as defined in section 145) issued during 2009 or 2010, this paragraph shall be applied by treating the 501(c)(3) organization for whose benefit such bond was issued as the issuer. “(iii) Special rule for qualified financings.— In the case of a qualified financing issue issued during 2009 or 2010— “(I) subparagraph (F) shall not apply, and “(II) any obligation issued as a part of such issue shall be treated as a qualified tax-exempt obligation if the requirements of this paragraph are met with respect to each qualified portion of the issue (determined by treating each qualified portion as a separate issue which is issued by the qualified borrower with respect to which such portion relates). “(iv) Qualified financing issue.— For purposes of this subparagraph, the term ‘qualified financing issue’ means any composite, pooled, or other conduit financing issue the proceeds of which are used directly or indirectly to make or finance loans to 1 or more ultimate borrowers each of whom is a qualified borrower. “(v) Qualified portion.— For purposes of this subparagraph, the term ‘qualified portion’ means that portion of the proceeds which are used with respect to each qualified borrower under the issue. “(vi) Qualified borrower.— For purposes of this subparagraph, the term ‘qualified borrower’ means a borrower which is a State or political subdivision thereof or an organization described in section 501(c)(3) and exempt from taxation under section 501(a).” . (b) Effective Date.— The amendment made by this section shall apply to obligations issued after December 31, 2008. SEC. 1503. TEMPORARY MODIFICATION OF ALTERNATIVE MINIMUM TAX LIMITATIONS ON TAX-EXEMPT BONDS. (a) Interest on Private Activity Bonds Issued During 2009 and 2010 Not Treated as Tax Preference Item.— Subparagraph (C) of section 57(a)(5) 26 USC 57. is amended by adding at the end a new clause: “(vi) Exception for bonds issued in 2009 and 2010.— “(I) In general.— For purposes of clause (i), the term ‘private activity bond’ shall not include any bond issued after December 31, 2008, and before January 1, 2011. “(II) Treatment of refunding bonds.— For purposes of subclause (I), a refunding bond (whether a current or advance refunding) shall be treated as issued on the date of the issuance of the refunded bond (or in the case of a series of refundings, the original bond). “(III) Exception for certain refunding bonds.— Subclause (II) shall not apply to any refunding bond which is issued to refund any bond which was issued after December 31, 2003, and before January 1, 2009.” . (b) No Adjustment to Adjusted Current Earnings for Interest on Tax-Exempt Bonds Issued During 2009 and 2010.— Subparagraph (B) of section 56(g)(4) is amended by adding at the end the following new clause: “(iv) Tax exempt interest on bonds issued in 2009 and 2010.— “(I) In general.— Clause (i) shall not apply in the case of any interest on a bond issued after December 31, 2008, and before January 1, 2011. “(II) Treatment of refunding bonds.— For purposes of subclause (I), a refunding bond (whether a current or advance refunding) shall be treated as issued on the date of the issuance of the refunded bond (or in the case of a series of refundings, the original bond). “(III) Exception for certain refunding bonds.— Subclause (II) shall not apply to any refunding bond which is issued to refund any bond which was issued after December 31, 2003, and before January 1, 2009.” . (c) Effective Date.— The amendments made by this section shall apply to obligations issued after December 31, 2008. SEC. 1504. MODIFICATION TO HIGH SPEED INTERCITY RAIL FACILITY BONDS. (a) In General.— Paragraph (1) of section 142(i) 26 USC 142. is amended by striking “operate at speeds in excess of” and inserting “be capable of attaining a maximum speed in excess of”. (b) Effective Date.— The amendment made by this section shall apply to obligations issued after the date of the enactment of this Act. PART II— DELAY IN APPLICATION OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS SEC. 1511. DELAY IN APPLICATION OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS.   Subsection (b) of section 511 of the Tax Increase Prevention and Reconciliation Act of 2005 26 USC 3402. is amended by striking “December 31, 2010” and inserting “December 31, 2011”. PART III— TAX CREDIT BONDS FOR SCHOOLS SEC. 1521. QUALIFIED SCHOOL CONSTRUCTION BONDS. (a) In General.— Subpart I of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section: “SEC. 54F. QUALIFIED SCHOOL CONSTRUCTION BONDS. “(a) Qualified School Construction Bond.— For purposes of this subchapter, the term ‘qualified school construction bond’ means any bond issued as part of an issue if— “(1) 100 percent of the available project proceeds of such issue are to be used for the construction, rehabilitation, or repair of a public school facility or for the acquisition of land on which such a facility is to be constructed with part of the proceeds of such issue, “(2) the bond is issued by a State or local government within the jurisdiction of which such school is located, and “(3) the issuer designates such bond for purposes of this section. “(b) Limitation on Amount of Bonds Designated.— The maximum aggregate face amount of bonds issued during any calendar year which may be designated under subsection (a) by any issuer shall not exceed the limitation amount allocated under subsection (d) for such calendar year to such issuer. “(c) National Limitation on Amount of Bonds Designated.— There is a national qualified school construction bond limitation for each calendar year. Such limitation is— “(1) $11,000,000,000 for 2009, “(2) $11,000,000,000 for 2010, and “(3) except as provided in subsection (e), zero after 2010. “(d) Allocation of Limitation.— “(1) Allocation among states.— Except as provided in paragraph (2)(C), the limitation applicable under subsection (c) for any calendar year shall be allocated by the Secretary among the States in proportion to the respective amounts each such State is eligible to receive under section 1124 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6333) for the most recent fiscal year ending before such calendar year. The limitation amount allocated to a State under the preceding sentence shall be allocated by the State to issuers within such State. “(2) 40 percent of limitation allocated among largest school districts.— “(A) In general.— 40 percent of the limitation applicable under subsection (c) for any calendar year shall be allocated under subparagraph (B) by the Secretary among local educational agencies which are large local educational agencies for such year. “(B) Allocation formula.— The amount to be allocated under subparagraph (A) for any calendar year shall be allocated among large local educational agencies in proportion to the respective amounts each such agency received under section 1124 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6333) for the most recent fiscal year ending before such calendar year. “(C) Reduction in state allocation.— The allocation to any State under paragraph (1) shall be reduced by the aggregate amount of the allocations under this paragraph to large local educational agencies within such State. “(D) Allocation of unused limitation to state.— The amount allocated under this paragraph to a large local educational agency for any calendar year may be reallocated by such agency to the State in which such agency is located for such calendar year. Any amount reallocated to a State under the preceding sentence may be allocated as provided in paragraph (1). “(E) Large local educational agency.— For purposes of this paragraph, the term ‘large local educational agency’ means, with respect to a calendar year, any local educational agency if such agency is— “(i) among the 100 local educational agencies with the largest numbers of children aged 5 through 17 from families living below the poverty level, as determined by the Secretary using the most recent data available from the Department of Commerce that are satisfactory to the Secretary, or “(ii) 1 of not more than 25 local educational agencies (other than those described in clause (i)) that the Secretary of Education determines (based on the most recent data available satisfactory to the Secretary) are in particular need of assistance, based on a low level of resources for school construction, a high level of enrollment growth, or such other factors as the Secretary deems appropriate. “(3) Allocations to certain possessions.— The amount to be allocated under paragraph (1) to any possession of the United States other than Puerto Rico shall be the amount which would have been allocated if all allocations under paragraph (1) were made on the basis of respective populations of individuals below the poverty line (as defined by the Office of Management and Budget). In making other allocations, the amount to be allocated under paragraph (1) shall be reduced by the aggregate amount allocated under this paragraph to possessions of the United States. “(4) Allocations for indian schools.— In addition to the amounts otherwise allocated under this subsection, $200,000,000 for calendar year 2009, and $200,000,000 for calendar year 2010, shall be allocated by the Secretary of the Interior for purposes of the construction, rehabilitation, and repair of schools funded by the Bureau of Indian Affairs. In the case of amounts allocated under the preceding sentence, Indian tribal governments (as defined in section 7701(a)(40)) shall be treated as qualified issuers for purposes of this subchapter. “(e) Carryover of Unused Limitation.— If for any calendar year— “(1) the amount allocated under subsection (d) to any State, exceeds “(2) the amount of bonds issued during such year which are designated under subsection (a) pursuant to such allocation, the limitation amount under such subsection for such State for the following calendar year shall be increased by the amount of such excess. Applicability. A similar rule shall apply to the amounts allocated under subsection (d)(4).” . (b) Conforming Amendments.— (1) Paragraph (1) of section 54A(d) 26 USC 54. is amended by striking “or” at the end of subparagraph (C), by inserting “or” at the end of subparagraph (D), and by inserting after subparagraph (D) the following new subparagraph: “(E) a qualified school construction bond,” . (2) Subparagraph (C) of section 54A(d)(2) is amended by striking “and” at the end of clause (iii), by striking the period at the end of clause (iv) and inserting “, and”, and by adding at the end the following new clause: “(v) in the case of a qualified school construction bond, a purpose specified in section 54F(a)(1).” . (3) The table of sections for subpart I of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item: “Sec. 54F.  Qualified school construction bonds.”. (c) Effective Date.— The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act. SEC. 1522. EXTENSION AND EXPANSION OF QUALIFIED ZONE ACADEMY BONDS. (a) In General.— Section 54E(c)(1) 26 USC 54. is amended by striking “and 2009” and inserting “and $1,400,000,000 for 2009 and 2010”. (b) Effective Date.— The amendment made by this section shall apply to obligations issued after December 31, 2008. PART IV— BUILD AMERICA BONDS SEC. 1531. BUILD AMERICA BONDS. (a) In General.— Part IV of subchapter A of chapter 1 is amended by adding at the end the following new subpart: “Subpart J— Build America Bonds “Sec. 54AA.  Build America bonds. “SEC. 54AA. BUILD AMERICA BONDS. “(a) In General.— If a taxpayer holds a build America bond on one or more interest payment dates of the bond during any taxable year, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the credits determined under subsection (b) with respect to such dates. “(b) Amount of Credit.— The amount of the credit determined under this subsection with respect to any interest payment date for a build America bond is 35 percent of the amount of interest payable by the issuer with respect to such date . “(c) Limitation Based on Amount of Tax.— “(1) In general.— The credit allowed under subsection (a) for any taxable year shall not exceed the excess of— “(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over “(B) the sum of the credits allowable under this part (other than subpart C and this subpart). “(2) Carryover of unused credit.— If the credit allowable under subsection (a) exceeds the limitation imposed by paragraph (1) for such taxable year, such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such taxable year (determined before the application of paragraph (1) for such succeeding taxable year). “(d) Build America Bond.— “(1) In general.— For purposes of this section, the term ‘build America bond’ means any obligation (other than a private activity bond) if— “(A) the interest on such obligation would (but for this section) be excludable from gross income under section 103, “(B) such obligation is issued before January 1, 2011, and “(C) the issuer makes an irrevocable election to have this section apply. “(2) Applicable rules.— For purposes of applying paragraph (1)— “(A) for purposes of section 149(b), a build America bond shall not be treated as federally guaranteed by reason of the credit allowed under subsection (a) or section 6431, “(B) for purposes of section 148, the yield on a build America bond shall be determined without regard to the credit allowed under subsection (a), and “(C) a bond shall not be treated as a build America bond if the issue price has more than a de minimis amount (determined under rules similar to the rules of section 1273(a)(3)) of premium over the stated principal amount of the bond. “(e) Interest Payment Date.— For purposes of this section, the term ‘interest payment date’ means any date on which the holder of record of the build America bond is entitled to a payment of interest under such bond. “(f) Special Rules.— “(1) Interest on build america bonds includible in gross income for federal income tax purposes.— For purposes of this title, interest on any build America bond shall be includible in gross income. “(2) Application of certain rules.— Rules similar to the rules of subsections (f), (g), (h), and (i) of section 54A shall apply for purposes of the credit allowed under subsection (a). “(g) Special Rule for Qualified Bonds Issued Before 2011.— In the case of a qualified bond issued before January 1, 2011— “(1) Issuer allowed refundable credit.— In lieu of any credit allowed under this section with respect to such bond, the issuer of such bond shall be allowed a credit as provided in section 6431. “(2) Qualified bond.— For purposes of this subsection, the term ‘qualified bond’ means any build America bond issued as part of an issue if— “(A) 100 percent of the excess of— “(i) the available project proceeds (as defined in section 54A) of such issue, over “(ii) the amounts in a reasonably required reserve (within the meaning of section 150(a)(3)) with respect to such issue, are to be used for capital expenditures, and “(B) the issuer makes an irrevocable election to have this subsection apply. “(h) Regulations.— The Secretary may prescribe such regulations and other guidance as may be necessary or appropriate to carry out this section and section 6431.” . (b) Credit for Qualified Bonds Issued Before 2011.— Subchapter B of chapter 65 is amended by adding at the end the following new section: “SEC. 6431. CREDIT FOR QUALIFIED BONDS ALLOWED TO ISSUER. “(a) In General.— In the case of a qualified bond issued before January 1, 2011, the issuer of such bond shall be allowed a credit with respect to each interest payment under such bond which shall be payable by the Secretary as provided in subsection (b). “(b) Payment of Credit.— The Secretary shall pay (contemporaneously with each interest payment date under such bond) to the issuer of such bond (or to any person who makes such interest payments on behalf of the issuer) 35 percent of the interest payable under such bond on such date. “(c) Application of Arbitrage Rules.— For purposes of section 148, the yield on a qualified bond shall be reduced by the credit allowed under this section. “(d) Interest Payment Date.— For purposes of this subsection, the term ‘interest payment date’ means each date on which interest is payable by the issuer under the terms of the bond. “(e) Qualified Bond.— For purposes of this subsection, the term ‘qualified bond’ has the meaning given such term in section 54AA(g).” . (c) Conforming Amendments.— (1) Section 1324(b)(2) of title 31, United States Code, is amended by striking “or 6428” and inserting “6428, or 6431,”. (2) Section 54A(c)(1)(B) 26 USC 54. is amended by striking “subpart C” and inserting “subparts C and J”. (3) Sections 54(c)(2), 1397E(c)(2), and 1400N(l)(3)(B) are each amended by striking “and I” and inserting “, I, and J”. (4) Section 6211(b)(4)(A) is amended by striking “and 6428” and inserting “6428, and 6431”. (5) Section 6401(b)(1) is amended by striking “and I” and inserting “I, and J”. (6) The table of subparts for part IV of subchapter A of chapter 1 is amended by adding at the end the following new item: “subpart j. build america bonds.”. (7) The table of section for subchapter B of chapter 65 is amended by adding at the end the following new item: “Sec. 6431.  Credit for qualified bonds allowed to issuer.”. (d) Transitional Coordination With State Law.— Except as otherwise provided by a State after the date of the enactment of this Act, the interest on any build America bond (as defined in section 54AA of the Internal Revenue Code of 1986, as added by this section) and the amount of any credit determined under such section with respect to such bond shall be treated for purposes of the income tax laws of such State as being exempt from Federal income tax. (e) Effective Date.— The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act. PART V— REGULATED INVESTMENT COMPANIES ALLOWED TO PASS-THRU TAX CREDIT BOND CREDITS SEC. 1541. REGULATED INVESTMENT COMPANIES ALLOWED TO PASS-THRU TAX CREDIT BOND CREDITS. (a) In General.— Part I of subchapter M of chapter 1 is amended by inserting after section 853 the following new section: “SEC. 853A. CREDITS FROM TAX CREDIT BONDS ALLOWED TO SHAREHOLDERS. “(a) General Rule.— A regulated investment company— “(1) which holds (directly or indirectly) one or more tax credit bonds on one or more applicable dates during the taxable year, and “(2) which meets the requirements of section 852(a) for the taxable year, may elect the application of this section with respect to credits allowable to the investment company during such taxable year with respect to such bonds. “(b) Effect of Election.— If the election provided in subsection (a) is in effect for any taxable year— “(1) the regulated investment company shall not be allowed any credits to which subsection (a) applies for such taxable year, “(2) the regulated investment company shall— “(A) include in gross income (as interest) for such taxable year an amount equal to the amount that such investment company would have included in gross income with respect to such credits if this section did not apply, and “(B) increase the amount of the dividends paid deduction for such taxable year by the amount of such income, and “(3) each shareholder of such investment company shall— “(A) include in gross income an amount equal to such shareholder’s proportionate share of the interest income attributable to such credits, and “(B) be allowed the shareholder’s proportionate share of such credits against the tax imposed by this chapter. “(c) Notice to Shareholders.— For purposes of subsection (b)(3), the shareholder’s proportionate share of— “(1) credits described in subsection (a), and “(2) gross income in respect of such credits, shall not exceed the amounts so designated by the regulated investment company in a written notice mailed to its shareholders not later than 60 days after the close of its taxable year. “(d) Manner of Making Election and Notifying Shareholders.— The election provided in subsection (a) and the notice to shareholders required by subsection (c) shall be made in such manner as the Secretary may prescribe. “(e) Definitions and Special Rules.— “(1) Definitions.— For purposes of this subsection— “(A) Tax credit bond.— The term ‘tax credit bond’ means— “(i) a qualified tax credit bond (as defined in section 54A(d)), “(ii) a build America bond (as defined in section 54AA(d)), and “(iii) any bond for which a credit is allowable under subpart H of part IV of subchapter A of this chapter. “(B) Applicable date.— The term ‘applicable date’ means— “(i) in the case of a qualified tax credit bond or a bond described in subparagraph (A)(iii), any credit allowance date (as defined in section 54A(e)(1)), and “(ii) in the case of a build America bond (as defined in section 54AA(d)), any interest payment date (as defined in section 54AA(e)). “(2) Stripped tax credit bonds.— If the ownership of a tax credit bond is separated from the credit with respect to such bond, subsection (a) shall be applied by reference to the instruments evidencing the entitlement to the credit rather than the tax credit bond. “(f) Regulations, etc.— The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including methods for determining a shareholder’s proportionate share of credits.” . (b) Conforming Amendments.— (1) Section 54(l) 26 USC 54. is amended by striking paragraph (4) and by redesignating paragraphs (5) and (6) as paragraphs (4) and (5), respectively. (2) Section 54A(h) is amended to read as follows: “(h) Bonds Held by Real Estate Investment Trusts.— If any qualified tax credit bond is held by a real estate investment trust, the credit determined under subsection (a) shall be allowed to beneficiaries of such trust (and any gross income included under subsection (f) with respect to such credit shall be distributed to such beneficiaries) under procedures prescribed by the Secretary.” . (3) The table of sections for part I of subchapter M of chapter 1 is amended by inserting after the item relating to section 853 the following new item: “Sec. 853A.  Credits from tax credit bonds allowed to shareholders.”. (c) Effective Date.— The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act. Subtitle G— Other Provisions SEC. 1601. APPLICATION OF CERTAIN LABOR STANDARDS TO PROJECTS FINANCED WITH CERTAIN TAX-FAVORED BONDS.   Subchapter IV of chapter 31 of the title 40, United States Code, shall apply to projects financed with the proceeds of— (1) any new clean renewable energy bond (as defined in section 54C of the Internal Revenue Code of 1986) issued after the date of the enactment of this Act, (2) any qualified energy conservation bond (as defined in section 54D of the Internal Revenue Code of 1986) issued after the date of the enactment of this Act, (3) any qualified zone academy bond (as defined in section 54E of the Internal Revenue Code of 1986) issued after the date of the enactment of this Act, (4) any qualified school construction bond (as defined in section 54F of the Internal Revenue Code of 1986), and (5) any recovery zone economic development bond (as defined in section 1400U–2 of the Internal Revenue Code of 1986). SEC. 1602. GRANTS TO STATES FOR LOW-INCOME HOUSING PROJECTS IN LIEU OF LOW-INCOME HOUSING CREDIT ALLOCATIONS FOR 2009. (a) In General.— The Secretary of the Treasury shall make a grant to the housing credit agency of each State in an amount equal to such State’s low-income housing grant election amount. (b) Low-Income Housing Grant Election Amount.— For purposes of this section, the term “low-income housing grant election amount” means, with respect to any State, such amount as the State may elect which does not exceed 85 percent of the product of— (1) the sum of— (A) 100 percent of the State housing credit ceiling for 2009 which is attributable to amounts described in clauses (i) and (iii) of section 42(h)(3)(C) of the Internal Revenue Code of 1986, and (B) 40 percent of the State housing credit ceiling for 2009 which is attributable to amounts described in clauses (ii) and (iv) of such section, multiplied by (2) 10. (c) Subawards for Low-Income Buildings.— (1) In general.— A State housing credit agency receiving a grant under this section shall use such grant to make subawards to finance the construction or acquisition and rehabilitation of qualified low-income buildings. A subaward under this section may be made to finance a qualified low-income building with or without an allocation under section 42 of the Internal Revenue Code of 1986, except that a State housing credit agency may make subawards to finance qualified low-income buildings without an allocation only if it makes a determination that such use will increase the total funds available to the State to build and rehabilitate affordable housing. Procedures. In complying with such determination requirement, a State housing credit agency shall establish a process in which applicants that are allocated credits are required to demonstrate good faith efforts to obtain investment commitments for such credits before the agency makes such subawards. (2) Subawards subject to same requirements as low-income housing credit allocations.— Any such subaward with respect to any qualified low-income building shall be made in the same manner and shall be subject to the same limitations (including rent, income, and use restrictions on such building) as an allocation of housing credit dollar amount allocated by such State housing credit agency under section 42 of the Internal Revenue Code of 1986, except that such subawards shall not be limited by, or otherwise affect (except as provided in subsection (h)(3)(J) of such section), the State housing credit ceiling applicable to such agency. (3) Compliance and asset management.— The State housing credit agency shall perform asset management functions to ensure compliance with section 42 of the Internal Revenue Code of 1986 and the long-term viability of buildings funded by any subaward under this section. The State housing credit agency may collect reasonable fees from a subaward recipient to cover expenses associated with the performance of its duties under this paragraph. The State housing credit agency may retain an agent or other private contractor to satisfy the requirements of this paragraph. (4) Recapture.— The State housing credit agency shall impose conditions or restrictions, including a requirement providing for recapture, on any subaward under this section so as to assure that the building with respect to which such subaward is made remains a qualified low-income building during the compliance period. Any such recapture shall be payable to the Secretary of the Treasury for deposit in the general fund of the Treasury and may be enforced by means of liens or such other methods as the Secretary of the Treasury determines appropriate. (d) Return of Unused Grant Funds.— Any grant funds not used to make subawards under this section before January 1, 2011, shall be returned to the Secretary of the Treasury on such date. Any subawards returned to the State housing credit agency on or after such date shall be promptly returned to the Secretary of the Treasury. Any amounts returned to the Secretary of the Treasury under this subsection shall be deposited in the general fund of the Treasury. (e) Definitions.— Any term used in this section which is also used in section 42 of the Internal Revenue Code of 1986 shall have the same meaning for purposes of this section as when used in such section 42. Any reference in this section to the Secretary of the Treasury shall be treated as including the Secretary’s delegate. (f) Appropriations.— There is hereby appropriated to the Secretary of the Treasury such sums as may be necessary to carry out this section. SEC. 1603. GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF TAX CREDITS. (a) In General.— Upon application, the Secretary of the Treasury shall, subject to the requirements of this section, provide a grant to each person who places in service specified energy property to reimburse such person for a portion of the expense of such property as provided in subsection (b). No grant shall be made under this section with respect to any property unless such property— (1) is placed in service during 2009 or 2010, or (2) is placed in service after 2010 and before the credit termination date with respect to such property, but only if the construction of such property began during 2009 or 2010. (b) Grant Amount.— (1) In general.— The amount of the grant under subsection (a) with respect to any specified energy property shall be the applicable percentage of the basis of such property. (2) Applicable percentage.— For purposes of paragraph (1), the term “applicable percentage” means— (A) 30 percent in the case of any property described in paragraphs (1) through (4) of subsection (d), and (B) 10 percent in the case of any other property. (3) Dollar limitations.— In the case of property described in paragraph (2), (6), or (7) of subsection (d), the amount of any grant under this section with respect to such property shall not exceed the limitation described in section 48(c)(1)(B), 48(c)(2)(B), or 48(c)(3)(B) of the Internal Revenue Code of 1986, respectively, with respect to such property. (c) Time for Payment of Grant.— The Secretary of the Treasury shall make payment of any grant under subsection (a) during the 60-day period beginning on the later of— (1) the date of the application for such grant, or (2) the date the specified energy property for which the grant is being made is placed in service. (d) Specified Energy Property.— For purposes of this section, the term “specified energy property” means any of the following: (1) Qualified facilities.— Any qualified property (as defined in section 48(a)(5)(D) of the Internal Revenue Code of 1986) which is part of a qualified facility (within the meaning of section 45 of such Code) described in paragraph (1), (2), (3), (4), (6), (7), (9), or (11) of section 45(d) of such Code. (2) Qualified fuel cell property.— Any qualified fuel cell property (as defined in section 48(c)(1) of such Code). (3) Solar property.— Any property described in clause (i) or (ii) of section 48(a)(3)(A) of such Code. (4) Qualified small wind energy property.— Any qualified small wind energy property (as defined in section 48(c)(4) of such Code). (5) Geothermal property.— Any property described in clause (iii) of section 48(a)(3)(A) of such Code. (6) Qualified microturbine property.— Any qualified microturbine property (as defined in section 48(c)(2) of such Code). (7) Combined heat and power system property.— Any combined heat and power system property (as defined in section 48(c)(3) of such Code). (8) Geothermal heat pump property.— Any property described in clause (vii) of section 48(a)(3)(A) of such Code. Such term shall not include any property unless depreciation (or amortization in lieu of depreciation) is allowable with respect to such property. (e) Credit Termination Date.— For purposes of this section, the term “credit termination date” means— (1) in the case of any specified energy property which is part of a facility described in paragraph (1) of section 45(d) of the Internal Revenue Code of 1986, January 1, 2013, (2) in the case of any specified energy property which is part of a facility described in paragraph (2), (3), (4), (6), (7), (9), or (11) of section 45(d) of such Code, January 1, 2014, and (3) in the case of any specified energy property described in section 48 of such Code, January 1, 2017. In the case Applicability. of any property which is described in paragraph (3) and also in another paragraph of this subsection, paragraph (3) shall apply with respect to such property. (f) Application of Certain Rules.— In making grants under this section, the Secretary of the Treasury shall apply rules similar to the rules of section 50 of the Internal Revenue Code of 1986. In applying such rules, if the property is disposed of, or otherwise ceases to be specified energy property, the Secretary of the Treasury shall provide for the recapture of the appropriate percentage of the grant amount in such manner as the Secretary of the Treasury determines appropriate. (g) Exception for Certain Non-Taxpayers.— The Secretary of the Treasury shall not make any grant under this section to— (1) any Federal, State, or local government (or any political subdivision, agency, or instrumentality thereof), (2) any organization described in section 501(c) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code, (3) any entity referred to in paragraph (4) of section 54(j) of such Code, or (4) any partnership or other pass-thru entity any partner (or other holder of an equity or profits interest) of which is described in paragraph (1), (2) or (3). (h) Definitions.— Terms used in this section which are also used in section 45 or 48 of the Internal Revenue Code of 1986 shall have the same meaning for purposes of this section as when used in such section 45 or 48. Any reference in this section to the Secretary of the Treasury shall be treated as including the Secretary’s delegate. (i) Appropriations.— There is hereby appropriated to the Secretary of the Treasury such sums as may be necessary to carry out this section. (j) Termination.— The Deadline. Secretary of the Treasury shall not make any grant to any person under this section unless the application of such person for such grant is received before October 1, 2011. SEC. 1604. INCREASE IN PUBLIC DEBT LIMIT.   Subsection (b) of section 3101 of title 31, United States Code, is amended by striking out the dollar limitation contained in such subsection and inserting “$12,104,000,000,000”. Subtitle H— Prohibition on Collection of Certain Payments Made Under the Continued Dumping and Subsidy Offset Act of 2000 SEC. 1701. PROHIBITION ON COLLECTION OF CERTAIN PAYMENTS MADE UNDER THE CONTINUED DUMPING AND SUBSIDY OFFSET ACT OF 2000. (a) In General.— Notwithstanding any other provision of law, neither the Secretary of Homeland Security nor any other person may— (1) require repayment of, or attempt in any other way to recoup, any payments described in subsection (b); or (2) offset any past, current, or future distributions of antidumping or countervailing duties assessed with respect to imports from countries that are not parties to the North American Free Trade Agreement in an attempt to recoup any payments described in subsection (b). (b) Payments Described.— Payments described in this subsection are payments of antidumping or countervailing duties made pursuant to the Continued Dumping and Subsidy Offset Act of 2000 (section 754 of the Tariff Act of 1930 (19 U.S.C. 1675c; repealed by subtitle F of title VII of the Deficit Reduction Act of 2005 (Public Law 109–171; 120 Stat. 154))) that were— (1) assessed and paid on imports of goods from countries that are parties to the North American Free Trade Agreement; and (2) distributed on or after January 1, 2001, and before January 1, 2006. (c) Payment of Funds Collected or Withheld.— Not Deadline. later than the date that is 60 days after the date of the enactment of this Act, the Secretary of Homeland Security shall— (1) refund any repayments, or any other recoupment, of payments described in subsection (b); and (2) fully distribute any antidumping or countervailing duties that the U.S. Customs and Border Protection is withholding as an offset as described in subsection (a)(2). (d) Limitation.— Nothing in this section shall be construed to prevent the Secretary of Homeland Security, or any other person, from requiring repayment of, or attempting to otherwise recoup, any payments described in subsection (b) as a result of— (1) a finding of false statements or other misconduct by a recipient of such a payment; or (2) the reliquidation of an entry with respect to which such a payment was made. Subtitle I— Trade Adjustment Assistance SEC. 1800. SHORT TITLE.   This subtitle may be cited as the “Trade and Globalization Adjustment Assistance Act of 2009”. PART I— TRADE ADJUSTMENT ASSISTANCE FOR WORKERS Subpart A— Trade Adjustment Assistance for Service Sector Workers SEC. 1801. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE TO SERVICE SECTOR AND PUBLIC AGENCY WORKERS; SHIFTS IN PRODUCTION. (a) Definitions.— Section 247 of the Trade Act of 1974 (19 U.S.C. 2319) is amended— (1) in paragraph (1)— (A) by striking “or appropriate subdivision of a firm”; and (B) by striking “or subdivision”; (2) in paragraph (2), by striking “employment—” and all that follows and inserting “employment, has been totally or partially separated from such employment.”; (3) by inserting after paragraph (2) the following: “(3) Subject to section 222(d)(5), the term ‘firm’ means— “(A) a firm, including an agricultural firm, service sector firm, or public agency; or “(B) an appropriate subdivision thereof.” ; (4) by inserting after paragraph (6) the following: “(7) The term ‘public agency’ means a department or agency of a State or local government or of the Federal Government, or a subdivision thereof.” ; (5) in paragraph (11), by striking “, or in a subdivision of which,”; and (6) by adding at the end the following: “(18) The term ‘service sector firm’ means a firm engaged in the business of supplying services.” . (b) Group Eligibility Requirements.— Section 222 of the Trade Act of 1974 (19 U.S.C. 2272) is amended— (1) in subsection (a)(2)— (A) by amending subparagraph (A)(ii) to read as follows: “(ii) (I) imports of articles or services like or directly competitive with articles produced or services supplied by such firm have increased; “(II) imports of articles like or directly competitive with articles— “(aa) into which one or more component parts produced by such firm are directly incorporated, or “(bb) which are produced directly using services supplied by such firm, have increased; or “(III) imports of articles directly incorporating one or more component parts produced outside the United States that are like or directly competitive with imports of articles incorporating one or more component parts produced by such firm have increased; and” ; and (B) by amending subparagraph (B) to read as follows: “(B) (i) (I) there has been a shift by such workers’ firm to a foreign country in the production of articles or the supply of services like or directly competitive with articles which are produced or services which are supplied by such firm; or “(II) such workers’ firm has acquired from a foreign country articles or services that are like or directly competitive with articles which are produced or services which are supplied by such firm; and “(ii) the shift described in clause (i)(I) or the acquisition of articles or services described in clause (i)(II) contributed importantly to such workers’ separation or threat of separation.” ; (2) by redesignating subsections (b) and (c) as subsections (c) and (d), respectively; and (3) by inserting after subsection (a) the following: “(b) Adversely Affected Workers in Public Agencies.— A group Certification. of workers in a public agency shall be certified by the Secretary as eligible to apply for adjustment assistance under this chapter pursuant to a petition filed under section 221 if the Secretary determines that— “(1) a significant number or proportion of the workers in the public agency have become totally or partially separated, or are threatened to become totally or partially separated; “(2) the public agency has acquired from a foreign country services like or directly competitive with services which are supplied by such agency; and “(3) the acquisition of services described in paragraph (2) contributed importantly to such workers’ separation or threat of separation.” . (c) Basis for Secretary’s Determinations.— Section 222 of the Trade Act of 1974 (19 U.S.C. 2272), as amended, is further amended by adding at the end the following: “(e) Basis for Secretary’s Determinations.— “(1) In general.— The Secretary shall, in determining whether to certify a group of workers under section 223, obtain from the workers’ firm, or a customer of the workers’ firm, information the Secretary determines to be necessary to make the certification, through questionnaires and in such other manner as the Secretary determines appropriate. “(2) Additional information.— The Secretary may seek additional information to determine whether to certify a group of workers under subsection (a), (b), or (c)— “(A) by contacting— “(i) officials or employees of the workers’ firm; “(ii) officials of customers of the workers’ firm; “(iii) officials of certified or recognized unions or other duly authorized representatives of the group of workers; or “(iv) one-stop operators or one-stop partners (as defined in section 101 of the Workforce Investment Act of 1998 (29 U.S.C. 2801)); or “(B) by using other available sources of information. “(3) Verification of information.— “(A) Certification.— The Secretary shall require a firm or customer to certify— “(i) all information obtained under paragraph (1) from the firm or customer (as the case may be) through questionnaires; and “(ii) all other information obtained under paragraph (1) from the firm or customer (as the case may be) on which the Secretary relies in making a determination under section 223, unless the Secretary has a reasonable basis for determining that such information is accurate and complete without being certified. “(B) Use of subpoenas.— The Secretary Deadline. shall require the workers’ firm or a customer of the workers’ firm to provide information requested by the Secretary under paragraph (1) by subpoena pursuant to section 249 if the firm or customer (as the case may be) fails to provide the information within 20 days after the date of the Secretary’s request, unless the firm or customer (as the case may be) demonstrates to the satisfaction of the Secretary that the firm or customer (as the case may be) will provide the information within a reasonable period of time. “(C) Protection of confidential information.— The Secretary may not release information obtained under paragraph (1) that the Secretary considers to be confidential business information unless the firm or customer (as the case may be) submitting the confidential business information had notice, at the time of submission, that the information would be released by the Secretary, or the firm or customer (as the case may be) subsequently consents to the release of the information. Nothing in this subparagraph shall be construed to prohibit the Secretary from providing such confidential business information to a court in camera or to another party under a protective order issued by a court.” . (d) Penalties.— Section 244 of the Trade Act of 1974 (19 U.S.C. 2316) is amended to read as follows: “SEC. 244. PENALTIES.   “Any person who— “(1) makes a false statement of a material fact knowing it to be false, or knowingly fails to disclose a material fact, for the purpose of obtaining or increasing for that person or for any other person any payment authorized to be furnished under this chapter or pursuant to an agreement under section 239, or “(2) makes a false statement of a material fact knowing it to be false, or knowingly fails to disclose a material fact, when providing information to the Secretary during an investigation of a petition under section 221, shall be imprisoned for not more than one year, or fined under title 18, United States Code, or both.” . (e) Conforming Amendments.— (1) Section 221(a) of the Trade Act of 1974 (19 U.S.C. 2271(a)) is amended— (A) in paragraph (1)— (i) in the matter preceding subparagraph (A)— (I) by striking “Secretary” and inserting “Secretary of Labor”; and (II) by striking “or subdivision” and inserting “(as defined in section 247)”; and (ii) in subparagraph (A), by striking “(including workers in an agricultural firm or subdivision of any agricultural firm)”; (B) in paragraph (2)(A), by striking “rapid response assistance” and inserting “rapid response activities”; and (C) in paragraph (3), by inserting “and on the website of the Department of Labor” after “Federal Register”. (2) Section 222 of the Trade Act of 1974 (19 U.S.C. 2272), as amended, is further amended— (A) by striking “(including workers in any agricultural firm or subdivision of an agricultural firm)” each place it appears; (B) in subsection (a)— (i) in paragraph (1), by striking “, or an appropriate subdivision of the firm,”; and (ii) in paragraph (2), by striking “or subdivision” each place it appears; (C) in subsection (c) (as redesignated)— (i) in paragraph (2)— (I) by striking “(or subdivision)” each place it appears; (II) by inserting “or service” after “the article”; and (III) by striking “(c) (3)” and inserting “(d) (3)”; and (ii) in paragraph (3), by striking “(or subdivision)” each place it appears; and (D) in subsection (d) (as redesignated)— (i) by striking “For purposes” and inserting “Definitions.—For purposes”; (ii) in paragraph (2), by striking “, or appropriate subdivision of a firm,” each place it appears; (iii) by amending paragraph (3) to read as follows: “(3) Downstream producer.— “(A) In general.— The term ‘downstream producer’ means a firm that performs additional, value-added production processes or services directly for another firm for articles or services with respect to which a group of workers in such other firm has been certified under subsection (a). “(B) Value-added production processes or services.— For purposes of subparagraph (A), value-added production processes or services include final assembly, finishing, testing, packaging, or maintenance or transportation services.” ; (iv) in paragraph (4)— (I) by striking “(or subdivision)”; and (II) by inserting “, or services, used in the production of articles or in the supply of services, as the case may be,” after “for articles”; and (v) by adding at the end the following: “(5) Reference to firm.— For purposes of subsection (a), the term ‘firm’ does not include a public agency.” . (3) Section 231(a)(2) of the Trade Act of 1974 (19 U.S.C. 2291(a)(2)) is amended— (A) in the matter preceding subparagraph (A), by striking “or subdivision of a firm”; and (B) in subparagraph (C), by striking “or subdivision”. SEC. 1802. SEPARATE BASIS FOR CERTIFICATION.   Section 222 of the Trade Act of 1974 (19 U.S.C. 2272), as amended, is further amended by adding at the end the following: “(f) Firms Identified by the International Trade Commission.— Notwithstanding any other provision of this chapter, a group of workers covered by a petition filed under section 221 shall be certified under subsection (a) as eligible to apply for adjustment assistance under this chapter if— “(1) the workers’ firm is publicly identified by name by the International Trade Commission as a member of a domestic industry in an investigation resulting in— “(A) an affirmative determination of serious injury or threat thereof under section 202(b)(1); “(B) an affirmative determination of market disruption or threat thereof under section 421(b)(1); or “(C) an affirmative final determination of material injury or threat thereof under section 705(b)(1)(A) or 735(b)(1)(A) of the Tariff Act of 1930 (19 U.S.C. 1671d(b)(1)(A) and 1673d(b)(1)(A)); “(2) the petition is filed during the one-year period beginning on the date on which— “(A) a summary of the report submitted to the President by the International Trade Commission under section 202(f)(1) with respect to the affirmative determination described in paragraph (1)(A) is published in the Federal Register under section 202(f)(3); or “(B) notice of an affirmative determination described in subparagraph (B) or (C) of paragraph (1) is published in the Federal Register; and “(3) the workers have become totally or partially separated from the workers’ firm within— “(A) the one-year period described in paragraph (2); or “(B) notwithstanding section 223(b), the one-year period preceding the one-year period described in paragraph (2).” . SEC. 1803. DETERMINATIONS BY SECRETARY OF LABOR.   Section 223 of the Trade Act of 1974 (19 U.S.C. 2273) is amended— (1) in subsection (b), by striking “or appropriate subdivision of the firm before his application” and all that follows and inserting “before the worker’s application under section 231 occurred more than one year before the date of the petition on which such certification was granted.”; (2) in subsection (c), by striking “together with his reasons” and inserting “and on the website of the Department of Labor, together with the Secretary’s reasons”; (3) in subsection (d)— (A) by striking “or subdivision of the firm” and all that follows through “he shall” and inserting “, that total or partial separations from such firm are no longer attributable to the conditions specified in section 222, the Secretary shall”; and (B) by striking “together with his reasons” and inserting “and on the website of the Department of Labor, together with the Secretary’s reasons”; and (4) by adding at the end the following: “(e) Standards for Investigations and Determinations.— “(1) In general.— The Secretary Criteria. shall establish standards, including data requirements, for investigations of petitions filed under section 221 and criteria for making determinations under subsection (a). “(2) Consultations.— Not less Deadline. than 90 days before issuing a final rule with respect to the standards required under paragraph (1), the Secretary shall consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives with respect to such rule.” . SEC. 1804. MONITORING AND REPORTING RELATING TO SERVICE SECTOR. (a) In General.— Section 282 of the Trade Act of 1974 (19 U.S.C. 2393) is amended— (1) in the heading, by striking “system” and inserting “and data collection”; (2) in the first sentence— (A) by striking “The Secretary” and inserting “(a) Monitoring Programs.—The Secretary”; (B) by inserting “and services” after “imports of articles”; (C) by inserting “and domestic supply of services” after “domestic production”; (D) by inserting “or supplying services” after “producing articles”; and (E) by inserting “, or supply of services,” after “changes in production”; and (3) by adding at the end the following: “(b) Collection of Data and Reports on Service Sector.— “(1) Secretary of labor.— Not later System. than 90 days after the date of the enactment of this subsection, the Secretary of Labor shall implement a system to collect data on adversely affected workers employed in the service sector that includes the number of workers by State and industry, and by the cause of the dislocation of each worker, as identified in the certification. “(2) Secretary of commerce.— Not later than 1 year after such date of enactment, the Secretary of Commerce shall, in consultation with the Secretary of Labor, conduct a study and submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report on ways to improve the timeliness and coverage of data on trade in services, including methods to identify increased imports due to the relocation of United States firms to foreign countries, and increased imports due to United States firms acquiring services from firms in foreign countries.” . (b) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by striking the item relating to section 282 and inserting the following: “Sec. 282.  Trade monitoring and data collection.”. (c) Effective Date.— The amendments made by this section shall take effect on the date of the enactment of this Act. Subpart B— Industry Notifications Following Certain Affirmative Determinations SEC. 1811. NOTIFICATIONS FOLLOWING CERTAIN AFFIRMATIVE DETERMINATIONS. (a) In General.— Section 224 of the Trade Act of 1974 (19 U.S.C. 2274) is amended— (1) by amending the heading to read as follows: “SEC. 224. STUDY AND NOTIFICATIONS REGARDING CERTAIN AFFIRMATIVE DETERMINATIONS; INDUSTRY NOTIFICATION OF ASSISTANCE.” ; (2) in subsection (a), by striking “Whenever” and inserting “Study of Domestic Industry.—Whenever”; (3) in subsection (b)— (A) by striking “The report” and inserting “Report by the Secretary.—The report”; and (B) by inserting “and on the website of the Department of Labor” after “Federal Register”; and (4) by adding at the end the following: “(c) Notifications Following Affirmative Global Safeguard Determinations.— Upon making an affirmative determination under section 202(b)(1), the Commission shall promptly notify the Secretary of Labor and the Secretary of Commerce and, in the case of a determination with respect to an agricultural commodity, the Secretary of Agriculture, of the determination. “(d) Notifications Following Affirmative Bilateral or Plurilateral Safeguard Determinations.— “(1) Notifications of determinations of market disruption.— Upon making an affirmative determination under section 421(b)(1), the Commission shall promptly notify the Secretary of Labor and the Secretary of Commerce and, in the case of a determination with respect to an agricultural commodity, the Secretary of Agriculture, of the determination. “(2) Notifications regarding trade agreement safeguards.— Upon making an affirmative determination in a proceeding initiated under an applicable safeguard provision (other than a provision described in paragraph (3)) that is enacted to implement a trade agreement to which the United States is a party, the Commission shall promptly notify the Secretary of Labor and the Secretary of Commerce and, in the case of a determination with respect to an agricultural commodity, the Secretary of Agriculture, of the determination. “(3) Notifications regarding textile and apparel safeguards.— Upon making an affirmative determination in a proceeding initiated under any safeguard provision relating to textile and apparel articles that is enacted to implement a trade agreement to which the United States is a party, the President shall promptly notify the Secretary of Labor and the Secretary of Commerce of the determination. “(e) Notifications Following Certain Affirmative Determinations Under Title Vii of the Tariff Act of 1930.— Upon making an affirmative determination under section 705(b)(1)(A) or 735(b)(1)(A) of the Tariff Act of 1930 (19 U.S.C. 1671d(b)(1)(A) and 1673d(b)(1)(A)), the Commission shall promptly notify the Secretary of Labor and the Secretary of Commerce and, in the case of a determination with respect to an agricultural commodity, the Secretary of Agriculture, of the determination. “(f) Industry Notification of Assistance.— Upon receiving a notification of a determination under subsection (c), (d), or (e) with respect to a domestic industry— “(1) the Secretary of Labor shall— “(A) notify the representatives of the domestic industry affected by the determination, firms publicly identified by name during the course of the proceeding relating to the determination, and any certified or recognized union or, to the extent practicable, other duly authorized representative of workers employed by such representatives of the domestic industry, of— “(i) the allowances, training, employment services, and other benefits available under this chapter; “(ii) the manner in which to file a petition and apply for such benefits; and “(iii) the availability of assistance in filing such petitions; “(B) notify the Governor of each State in which one or more firms in the industry described in subparagraph (A) are located of the Commission’s determination and the identity of the firms; and “(C) upon request, provide any assistance that is necessary to file a petition under section 221; “(2) the Secretary of Commerce shall— “(A) notify the representatives of the domestic industry affected by the determination and any firms publicly identified by name during the course of the proceeding relating to the determination of— “(i) the benefits available under chapter 3; “(ii) the manner in which to file a petition and apply for such benefits; and “(iii) the availability of assistance in filing such petitions; and “(B) upon request, provide any assistance that is necessary to file a petition under section 251; and “(3) in the case of an affirmative determination based upon imports of an agricultural commodity, the Secretary of Agriculture shall— “(A) notify representatives of the domestic industry affected by the determination and any agricultural commodity producers publicly identified by name during the course of the proceeding relating to the determination of— “(i) the benefits available under chapter 6; “(ii) the manner in which to file a petition and apply for such benefits; and “(iii) the availability of assistance in filing such petitions; and “(B) upon request, provide any assistance that is necessary to file a petition under section 292. “(g) Representatives of the Domestic Industry.— For purposes of subsection (f), the term ‘representatives of the domestic industry’ means the persons that petitioned for relief in connection with— “(1) a proceeding under section 202 or 421 of this Act; “(2) a proceeding under section 702(b) or 732(b) of the Tariff Act of 1930 (19 U.S.C. 1671d(b) and 1673d(b)); or “(3) any safeguard investigation described in subsection (d)(2) or (d)(3).” . (b) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by striking the item relating to section 224 and inserting the following: “Sec. 224.  Study and notifications regarding certain affirmative determinations; industry notification of assistance.”. SEC. 1812. NOTIFICATION TO SECRETARY OF COMMERCE.   Section 225 of the Trade Act of 1974 (19 U.S.C. 2275) is amended by adding at the end the following: “(c) Upon issuing a certification under section 223, the Secretary shall notify the Secretary of Commerce of the identity of each firm covered by the certification.” . Subpart C— Program Benefits SEC. 1821. QUALIFYING REQUIREMENTS FOR WORKERS. (a) In General.— Section 231(a)(5)(A)(ii) of the Trade Act of 1974 (19 U.S.C. 2291 (a)(5)(A)(ii)) is amended— (1) by striking subclauses (I) and (II) and inserting the following: “(I) in the case of a worker whose most recent total separation from adversely affected employment that meets the requirements of paragraphs (1) and (2) occurs after the date on which the Secretary issues a certification covering the worker, the last day of the 26th week after such total separation, “(II) in the case of a worker whose most recent total separation from adversely affected employment that meets the requirements of paragraphs (1) and (2) occurs before the date on which the Secretary issues a certification covering the worker, the last day of the 26th week after the date of such certification,” ; (2) in subclause (III)— (A) by striking “later of the dates specified in subclause (I) or (II)” and inserting “date specified in subclause (I) or (II), as the case may be”; and (B) by striking “or” at the end; (3) by redesignating subclause (IV) as subclause (V); and (4) by inserting after subclause (III) the following: “(IV) in the case of a worker who fails to enroll by the date required by subclause (I), (II), or (III), as the case may be, due to the failure to provide the worker with timely information regarding the date specified in such subclause, the last day of a period determined by the Secretary, or” . (b) Waivers of Training Requirements.— Section 231(c) of the Trade Act of 1974 (19 U.S.C. 2291(c)) is amended— (1) in paragraph (1)(B)— (A) by striking “The worker possesses” and inserting the following: “(i) In general.— The worker possesses” ; and (B) by adding at the end the following: “(ii) Marketable skills defined.— For purposes of clause (i), the term ‘marketable skills’ may include the possession of a postgraduate degree from an institution of higher education (as defined in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002)) or an equivalent institution, or the possession of an equivalent postgraduate certification in a specialized field.” ; (2) in paragraph (2)(A), by striking “A waiver” and inserting “Except as provided in paragraph (3)(B), a waiver”; and (3) in paragraph (3)— (A) in subparagraph (A), by striking “Pursuant to an agreement under section 239, the Secretary may authorize a” and inserting “An agreement under section 239 shall authorize a”; (B) by redesignating subparagraph (B) as subparagraph (C); and (C) by inserting after subparagraph (A) the following: “(B) Review of waivers.— An agreement Deadlines. under section 239 shall require a cooperating State to review each waiver issued by the State under subparagraph (A), (B), (D), (E), or (F) of paragraph (1)— “(i) 3 months after the date on which the State issues the waiver; and “(ii) on a monthly basis thereafter.” . (c) Conforming Amendments.— (1) Section 231 of the Trade Act of 1974 (19 U.S.C. 2291), as amended, is further amended— (A) in subsection (a), in the matter preceding paragraph (1), by striking “more than 60 days” and all that follows through “section 221” and inserting “on or after the date of such certification”; and (B) in subsection (b)— (i) by striking paragraph (2); and (ii) in paragraph (1)— (I) by striking “(1)”; (II) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively; (III) by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively; and (IV) by redesignating subclauses (I) and (II) as clauses (i) and (ii), respectively. (2) Section 233 of the Trade Act of 1974 (19 U.S.C. 2293) is amended— (A) by striking subsection (b); and (B) by redesignating subsections (c) through (g) as subsections (b) through (f), respectively. SEC. 1822. WEEKLY AMOUNTS.   Section 232 of the Trade Act of 1974 (19 U.S.C. 2292) is amended— (1) in subsection (a)— (A) by striking “subsections (b) and (c)” and inserting “subsections (b), (c), and (d)”; (B) by striking “total unemployment” the first place it appears and inserting “unemployment”; and (C) in paragraph (2), by inserting before the period the following: “, except that in the case of an adversely affected worker who is participating in training under this chapter, such income shall not include earnings from work for such week that are equal to or less than the most recent weekly benefit amount of the unemployment insurance payable to the worker for a week of total unemployment preceding the worker’s first exhaustion of unemployment insurance (as determined for purposes of section 231(a)(3)(B))”; and (2) by adding at the end the following: “(d) Election of Trade Readjustment Allowance or Unemployment Insurance.— Notwithstanding section 231(a)(3)(B), an adversely affected worker may elect to receive a trade readjustment allowance instead of unemployment insurance during any week with respect to which the worker— “(1) is entitled to receive unemployment insurance as a result of the establishment by the worker of a new benefit year under State law, based in whole or in part upon part-time or short-term employment in which the worker engaged after the worker’s most recent total separation from adversely affected employment; and “(2) is otherwise entitled to a trade readjustment allowance.” . SEC. 1823. LIMITATIONS ON TRADE READJUSTMENT ALLOWANCES; ALLOWANCES FOR EXTENDED TRAINING AND BREAKS IN TRAINING.   Section 233(a) of the Trade Act of 1974 (19 U.S.C. 2293(a)) is amended— (1) in paragraph (2), by inserting “under paragraph (1)” after “trade readjustment allowance”; and (2) in paragraph (3)— (A) in the matter preceding subparagraph (A)— (i) by striking “training approved for him” and inserting “a training program approved for the worker”; (ii) by striking “52 additional weeks” and inserting “78 additional weeks”; and (iii) by striking “52-week” and inserting “91-week”; and (B) in the matter following subparagraph (B), by striking “52-week” and inserting “91-week”. SEC. 1824. SPECIAL RULES FOR CALCULATION OF ELIGIBILITY PERIOD.   Section 233 of the Trade Act of 1974 (19 U.S.C. 2293), as amended, is further amended by adding at the end the following: “(g) Special Rule for Calculating Separation.— Notwithstanding any other provision of this chapter, any period during which a judicial or administrative appeal is pending with respect to the denial by the Secretary of a petition under section 223 shall not be counted for purposes of calculating the period of separation under subsection (a)(2). “(h) Special Rule for Justifiable Cause.— If the Secretary determines that there is justifiable cause, the Secretary may extend the period during which trade readjustment allowances are payable to an adversely affected worker under paragraphs (2) and (3) of subsection (a) (but not the maximum amounts of such allowances that are payable under this section). “(i) Special Rule With Respect to Military Service.— “(1) In general.— Notwithstanding any Waiver authority. other provision of this chapter, the Secretary may waive any requirement of this chapter that the Secretary determines is necessary to ensure that an adversely affected worker who is a member of a reserve component of the Armed Forces and serves a period of duty described in paragraph (2) is eligible to receive a trade readjustment allowance, training, and other benefits under this chapter in the same manner and to the same extent as if the worker had not served the period of duty. “(2) Period of duty described.— An adversely affected worker serves a period of duty described in this paragraph if, before completing training under section 236, the worker— “(A) serves on active duty for a period of more than 30 days under a call or order to active duty of more than 30 days; or “(B) in the case of a member of the Army National Guard of the United States or Air National Guard of the United States, performs full-time National Guard duty under section 502(f) of title 32, United States Code, for 30 consecutive days or more when authorized by the President or the Secretary of Defense for the purpose of responding to a national emergency declared by the President and supported by Federal funds.” . SEC. 1825. APPLICATION OF STATE LAWS AND REGULATIONS ON GOOD CAUSE FOR WAIVER OF TIME LIMITS OR LATE FILING OF CLAIMS.   Section 234 of the Trade Act of 1974 (19 U.S.C. 2294) is amended— (1) by striking “Except where inconsistent” and inserting “(a) In General.—Except where inconsistent”; and (2) by adding at the end the following: “(b) Special Rule With Respect to State Laws and Regulations on Good Cause for Waiver of Time Limits or Late Filing of Claims.— Any law, Applicability. regulation, policy, or practice of a cooperating State that allows for a waiver for good cause of any time limitation relating to the administration of the State unemployment insurance law shall, in the administration of the program under this chapter by the State, apply to any time limitation with respect to an application for a trade readjustment allowance or enrollment in training under this chapter.” . SEC. 1826. EMPLOYMENT AND CASE MANAGEMENT SERVICES. (a) In General.— Section 235 of the Trade Act of 1974 (19 U.S.C. 2295) is amended to read as follows: “SEC. 235. EMPLOYMENT AND CASE MANAGEMENT SERVICES.   “The Secretary shall make available, directly or through agreements with States under section 239, to adversely affected workers and adversely affected incumbent workers covered by a certification under subchapter A of this chapter the following employment and case management services: “(1) Comprehensive and specialized assessment of skill levels and service needs, including through— “(A) diagnostic testing and use of other assessment tools; and “(B) in-depth interviewing and evaluation to identify employment barriers and appropriate employment goals. “(2) Development of an individual employment plan to identify employment goals and objectives, and appropriate training to achieve those goals and objectives. “(3) Information on training available in local and regional areas, information on individual counseling to determine which training is suitable training, and information on how to apply for such training. “(4) Information on how to apply for financial aid, including referring workers to educational opportunity centers described in section 402F of the Higher Education Act of 1965 (20 U.S.C. 1070a–16), where applicable, and notifying workers that the workers may request financial aid administrators at institutions of higher education (as defined in section 102 of such Act (20 U.S.C. 1002)) to use the administrators’ discretion under section 479A of such Act (20 U.S.C. 1087tt) to use current year income data, rather than preceding year income data, for determining the amount of need of the workers for Federal financial assistance under title IV of such Act (20 U.S.C. 1070 et seq.). “(5) Short-term prevocational services, including development of learning skills, communications skills, interviewing skills, punctuality, personal maintenance skills, and professional conduct to prepare individuals for employment or training. “(6) Individual career counseling, including job search and placement counseling, during the period in which the individual is receiving a trade adjustment allowance or training under this chapter, and after receiving such training for purposes of job placement. “(7) Provision of employment statistics information, including the provision of accurate information relating to local, regional, and national labor market areas, including— “(A) job vacancy listings in such labor market areas; “(B) information on jobs skills necessary to obtain jobs identified in job vacancy listings described in subparagraph (A); “(C) information relating to local occupations that are in demand and earnings potential of such occupations; and “(D) skills requirements for local occupations described in subparagraph (C). “(8) Information relating to the availability of supportive services, including services relating to child care, transportation, dependent care, housing assistance, and need-related payments that are necessary to enable an individual to participate in training.” . (b) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by striking the item relating to section 235 and inserting the following: “235. Employment and case management services.”. SEC. 1827. ADMINISTRATIVE EXPENSES AND EMPLOYMENT AND CASE MANAGEMENT SERVICES. (a) In General.— Part II of subchapter B of chapter 2 of title II of the Trade Act of 1974 (19 U.S.C. 2295 et seq.) is amended by inserting after section 235 the following: “SEC. 235A. FUNDING FOR ADMINISTRATIVE EXPENSES AND EMPLOYMENT AND CASE MANAGEMENT SERVICES. “(a) Funding for Administrative Expenses and Employment and Case Management Services.— “(1) In general.— In addition to any funds made available to a State to carry out section 236 for a fiscal year, the State shall receive for the fiscal year a payment in an amount that is equal to 15 percent of the amount of such funds. “(2) Use of funds.— A State that receives a payment under paragraph (1) shall— “(A) use not more than ⅔ of such payment for the administration of the trade adjustment assistance for workers program under this chapter, including for— “(i) processing waivers of training requirements under section 231; “(ii) collecting, validating, and reporting data required under this chapter; and “(iii) providing reemployment trade adjustment assistance under section 246; and “(B) use not less than ⅓ of such payment for employment and case management services under section 235. “(b) Additional Funding for Employment and Case Management Services.— “(1) In general.— In addition to any funds made available to a State to carry out section 236 and the payment under subsection (a)(1) for a fiscal year, the Secretary shall provide to the State for the fiscal year a payment in the amount of $350,000. “(2) Use of funds.— A State that receives a payment under paragraph (1) shall use such payment for the purpose of providing employment and case management services under section 235. “(3) Voluntary return of funds.— A State that receives a payment under paragraph (1) may decline or otherwise return such payment to the Secretary.” . (b) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by inserting after the item relating to section 235 the following: “Sec. 235A.  Funding for administrative expenses and employment and case management services.”. (c) Effective Date.— The amendments made by this section shall take effect on the date of the enactment of this Act. SEC. 1828. TRAINING FUNDING. (a) In General.— Section 236(a)(2) of the Trade Act of 1974 (19 U.S.C. 2296(a)(2)) is amended to read as follows: “(2) (A) The total amount of payments that may be made under paragraph (1) shall not exceed— “(i) for each of the fiscal years 2009 and 2010, $575,000,000; and “(ii) for the period beginning October 1, 2010, and ending December 31, 2010, $143,750,000. “(B) (i) The Secretary shall, as soon as practicable after the beginning of each fiscal year, make an initial distribution of the funds made available to carry out this section, in accordance with the requirements of subparagraph (C). “(ii) The Secretary shall ensure that not less than 90 percent of the funds made available to carry out this section for a fiscal year are distributed to the States by not later than July 15 of that fiscal year. “(C) (i) In making the initial distribution of funds pursuant to subparagraph (B)(i) for a fiscal year, the Secretary shall hold in reserve 35 percent of the funds made available to carry out this section for that fiscal year for additional distributions during the remainder of the fiscal year. “(ii) Subject to clause (iii), in determining how to apportion the initial distribution of funds pursuant to subparagraph (B)(i) in a fiscal year, the Secretary shall take into account, with respect to each State— “(I) the trend in the number of workers covered by certifications of eligibility under this chapter during the most recent 4 consecutive calendar quarters for which data are available; “(II) the trend in the number of workers participating in training under this section during the most recent 4 consecutive calendar quarters for which data are available; “(III) the number of workers estimated to be participating in training under this section during the fiscal year; “(IV) the amount of funding estimated to be necessary to provide training approved under this section to such workers during the fiscal year; and “(V) such other factors as the Secretary considers appropriate relating to the provision of training under this section. “(iii) In no case may the amount of the initial distribution to a State pursuant to subparagraph (B)(i) in a fiscal year be less than 25 percent of the initial distribution to the State in the preceding fiscal year. “(D) The Secretary shall establish procedures for the distribution of the funds that remain available for the fiscal year after the initial distribution required under subparagraph (B)(i). Such procedures may include the distribution of funds pursuant to requests submitted by States in need of such funds. “(E) If, during a fiscal year, the Secretary estimates that the amount of funds necessary to pay the costs of training approved under this section will exceed the dollar amount limitation specified in subparagraph (A), the Secretary shall decide how the amount of funds made available to carry out this section that have not been distributed at the time of the estimate will be apportioned among the States for the remainder of the fiscal year.” . (b) Determinations Regarding Training.— Section 236(a)(9) of the Trade Act of 1974 (19 U.S.C. 2296(a)(9)) is amended— (1) by striking “The Secretary” and inserting “(A) Subject to subparagraph (B), the Secretary”; and (2) by adding at the end the following: “(B) (i) In determining under paragraph (1)(E) whether a worker is qualified to undertake and complete training, the Secretary may approve training for a period longer than the worker’s period of eligibility for trade readjustment allowances under part I if the worker demonstrates a financial ability to complete the training after the expiration of the worker’s period of eligibility for such trade readjustment allowances. “(ii) In determining the reasonable cost of training under paragraph (1)(F) with respect to a worker, the Secretary may consider whether other public or private funds are reasonably available to the worker, except that the Secretary may not require a worker to obtain such funds as a condition of approval of training under paragraph (1).” . (c) Regulations.— Section 236 of the Trade Act of 1974 (19 U.S.C. 2296) is amended by adding at the end the following: “(g) Regulations With Respect to Apportionment of Training Funds to States.— “(1) In general.— Not later than 1 year after the date of the enactment of this subsection, the Secretary shall issue such regulations as may be necessary to carry out the provisions of subsection (a)(2). “(2) Consultations.— The Secretary shall consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives not less than 90 days before issuing any regulation pursuant to paragraph (1).” . (d) Effective Date.— This section and the amendments made by this section shall take effect upon the expiration of the 90-day period beginning on the date of the enactment of this Act, except that— (1) subparagraph (A) of section 236(a)(2) of the Trade Act of 1974, as amended by subsection (a) of this section, shall take effect on the date of the enactment of this Act; and (2) subparagraphs (B), (C), and (D) of such section 236(a)(2) shall take effect on October 1, 2009. SEC. 1829. PREREQUISITE EDUCATION; APPROVED TRAINING PROGRAMS. (a) In General.— Section 236(a)(5) of the Trade Act of 1974 (19 U.S.C. 2296(a)(5)) is amended— (1) in subparagraph (A)— (A) by striking “and” at the end of clause (i); (B) by adding “and” at the end of clause (ii); and (C) by inserting after clause (ii) the following: “(iii) apprenticeship programs registered under the Act of August 16, 1937 (commonly known as the ‘National Apprenticeship Act’; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.),” ; (2) by redesignating subparagraphs (E) and (F) as subparagraphs (F) and (G), respectively; (3) by inserting after subparagraph (D) the following: “(E) any program of prerequisite education or coursework required to enroll in training that may be approved under this section,” ; (4) in subparagraph (F)(ii), as redesignated by paragraph (2), by striking “and” at the end; (5) in subparagraph (G), as redesignated by paragraph (2), by striking the period at the end and inserting “, and”; and (6) by adding at the end the following: “(H) any training program or coursework at an accredited institution of higher education (described in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002)), including a training program or coursework for the purpose of— “(i) obtaining a degree or certification; or “(ii) completing a degree or certification that the worker had previously begun at an accredited institution of higher education. The Secretary may not limit approval of a training program under paragraph (1) to a program provided pursuant to title I of the Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.).” . (b) Conforming Amendments.— Section 233 of the Trade Act of 1974 (19 U.S.C. 2293) is amended— (1) in subsection (a)(2), by inserting “prerequisite education or” after “requires a program of”; and (2) in subsection (f) (as redesignated by section 1821(c) of this subtitle), by inserting “prerequisite education or” after “includes a program of”. (c) Technical Corrections.— Section 236 of the Trade Act of 1974 (19 U.S.C. 2296) is amended— (1) in subsection (a)— (A) in paragraph (1), in the flush text, by striking “his behalf” and inserting “the worker’s behalf”; and (B) in paragraph (3), by striking “this paragraph (1)” and inserting “paragraph (1)”; and (2) in subsection (b)(2), by striking “, and” and inserting a period. SEC. 1830. PRE-LAYOFF AND PART-TIME TRAINING. (a) Pre-Layoff Training.— (1) In general.— Section 236(a) of the Trade Act of 1974 (19 U.S.C. 2296(a)) is amended— (A) in paragraph (1), by inserting after “determines” the following: “, with respect to an adversely affected worker or an adversely affected incumbent worker,”; (B) in paragraph (4)— (i) in subparagraphs (A) and (B), by inserting “or an adversely affected incumbent worker” after “an adversely affected worker” each place it appears; and (ii) in subparagraph (C), by inserting “or adversely affected incumbent worker” after “adversely affected worker” each place it appears; (C) in paragraph (5), in the matter preceding subparagraph (A), by striking “The training programs” and inserting “Except as provided in paragraph (10), the training programs”; (D) in paragraph (6)(B), by inserting “or adversely affected incumbent worker” after “adversely affected worker”; (E) in paragraph (7)(B), by inserting “or adversely affected incumbent worker” after “adversely affected worker”; and (F) by inserting after paragraph (9) the following: “(10) In the case of an adversely affected incumbent worker, the Secretary may not approve— “(A) on-the-job training under paragraph (5)(A)(i); or “(B) customized training under paragraph (5)(A)(ii), unless such training is for a position other than the worker’s adversely affected employment. “(11) If the Secretary determines that an adversely affected incumbent worker for whom the Secretary approved training under this section is no longer threatened with a total or partial separation, the Secretary shall terminate the approval of such training.” . (2) Definitions.— Section 247 of the Trade Act of 1974 (19 U.S.C. 2319), as amended, is further amended by adding at the end the following: “(19) The term ‘adversely affected incumbent worker’ means a worker who— “(A) is a member of a group of workers who have been certified as eligible to apply for adjustment assistance under subchapter A; “(B) has not been totally or partially separated from adversely affected employment; and “(C) the Secretary determines, on an individual basis, is threatened with total or partial separation.” . (b) Part-Time Training.— Section 236 of the Trade Act of 1974 (19 U.S.C. 2296), as amended, is further amended by adding at the end the following: “(h) Part-Time Training.— “(1) In general.— The Secretary may approve full-time or part-time training for a worker under subsection (a). “(2) Limitation.— Notwithstanding paragraph (1), a worker participating in part-time training approved under subsection (a) may not receive a trade readjustment allowance under section 231.” . SEC. 1831. ON-THE-JOB TRAINING. (a) In General.— Section 236(c) of the Trade Act of 1974 (19 U.S.C. 2296(c)) is amended— (1) by redesignating paragraphs (1) through (10) as subparagraphs (A) through (J) and moving such subparagraphs 2 ems to the right; (2) by striking “(c) The Secretary shall” and all that follows through “such costs,” and inserting the following: “(c) On-the-Job Training Requirements.— “(1) In general.— The Secretary may approve on-the-job training for any adversely affected worker if— “(A) the worker meets the requirements for training to be approved under subsection (a)(1); “(B) the Secretary determines that on-the-job training— “(i) can reasonably be expected to lead to suitable employment with the employer offering the on-the-job training; “(ii) is compatible with the skills of the worker; “(iii) includes a curriculum through which the worker will gain the knowledge or skills to become proficient in the job for which the worker is being trained; and “(iv) can be measured by benchmarks that indicate that the worker is gaining such knowledge or skills; and “(C) the State determines that the on-the-job training program meets the requirements of clauses (iii) and (iv) of subparagraph (B). “(2) Monthly payments.— The Secretary shall pay the costs of on-the-job training approved under paragraph (1) in monthly installments. “(3) Contracts for on-the-job training.— “(A) In general.— The Secretary shall ensure, in entering into a contract with an employer to provide on-the-job training to a worker under this subsection, that the skill requirements of the job for which the worker is being trained, the academic and occupational skill level of the worker, and the work experience of the worker are taken into consideration. “(B) Term of contract.— Training under any such contract shall be limited to the period of time required for the worker receiving on-the-job training to become proficient in the job for which the worker is being trained, but may not exceed 104 weeks in any case. “(4) Exclusion of certain employers.— The Secretary shall not enter into a contract for on-the-job training with an employer that exhibits a pattern of failing to provide workers receiving on-the-job training from the employer with— “(A) continued, long-term employment as regular employees; and “(B) wages, benefits, and working conditions that are equivalent to the wages, benefits, and working conditions provided to regular employees who have worked a similar period of time and are doing the same type of work as workers receiving on-the-job training from the employer. “(5) Labor standards.— The Secretary may pay the costs of on-the-job training,” ; and (3) in paragraph (5), as redesignated— (A) in subparagraph (I), as redesignated by paragraph (1) of this section, by striking “paragraphs (1), (2), (3), (4), (5), and (6)” and inserting “subparagraphs (A), (B), (C), (D), (E), and (F)”; and (B) in subparagraph (J), as redesignated by paragraph (1) of this section, by striking “paragraph (8)” and inserting “subparagraph (H)”. (b) Repeal of Preference for Training on the Job.— Section 236(a)(1) of the Trade Act of 1974 (19 U.S.C. 2296(a)(1)) is amended by striking the last sentence. SEC. 1832. ELIGIBILITY FOR UNEMPLOYMENT INSURANCE AND PROGRAM BENEFITS WHILE IN TRAINING.   Section 236(d) of the Trade Act of 1974 (19 U.S.C. 2296(d)) is amended to read as follows: “(d) Eligibility.— An adversely affected worker may not be determined to be ineligible or disqualified for unemployment insurance or program benefits under this subchapter— “(1) because the worker— “(A) is enrolled in training approved under subsection (a); “(B) left work— “(i) that was not suitable employment in order to enroll in such training; or “(ii) that the worker engaged in on a temporary basis during a break in such training or a delay in the commencement of such training; or “(C) left on-the-job training not later than 30 days after commencing such training because the training did not meet the requirements of subsection (c)(1)(B); or “(2) because of the application to any such week in training of the provisions of State law or Federal unemployment insurance law relating to availability for work, active search for work, or refusal to accept work.” . SEC. 1833. JOB SEARCH AND RELOCATION ALLOWANCES. (a) Job Search Allowances.— Section 237 of the Trade Act of 1974 (19 U.S.C. 2297) is amended— (1) in subsection (a)(2)(C)(ii), by striking “, unless the worker received a waiver under section 231(c)”; and (2) in subsection (b)— (A) in paragraph (1), by striking “90 percent of the cost of” and inserting “all”; and (B) in paragraph (2), by striking “$1,250” and inserting “$1,500”. (b) Relocation Allowances.— Section 238 of the Trade Act of 1974 (19 U.S.C. 2298) is amended— (1) in subsection (a)(2)(E)(ii), by striking “, unless the worker received a waiver under section 231(c)”; and (2) in subsection (b)— (A) in paragraph (1), by striking “90 percent of the” and inserting “all”; and (B) in paragraph (2), by striking “$1,250” and inserting “$1,500”. Subpart D— Reemployment Trade Adjustment Assistance Program SEC. 1841. REEMPLOYMENT TRADE ADJUSTMENT ASSISTANCE PROGRAM. (a) In General.— Section 246 of the Trade Act of 1974 (19 U.S.C. 2318) is amended— (1) by amending the heading to read as follows: “SEC. 246. REEMPLOYMENT TRADE ADJUSTMENT ASSISTANCE PROGRAM.” ; (2) in subsection (a)— (A) in paragraph (1)— (i) by striking “Not later than” and all that follows through “2002, the Secretary” and inserting “The Secretary”; and (ii) by striking “an alternative trade adjustment assistance program for older workers” and inserting “a reemployment trade adjustment assistance program”; (B) in paragraph (2)— (i) in subparagraph (A)— (I) in the matter preceding clause (i), by striking “for a period not to exceed 2 years” and inserting “for the eligibility period under subparagraph (A) or (B) of paragraph (4) (as the case may be)”; and (II) by striking clauses (i) and (ii) and inserting the following: “(i) the wages received by the worker at the time of separation; and “(ii) the wages received by the worker from reemployment.” ; (ii) in subparagraph (B)— (I) by striking “for a period not to exceed 2 years” and inserting “for the eligibility period under subparagraph (A) or (B) of paragraph (4) (as the case may be)”; and (II) by striking “, as added by section 201 of the Trade Act of 2002”; and (iii) by adding at the end the following: “(C) Training and other services.— A worker described in paragraph (3)(B) participating in the program established under paragraph (1) is eligible to receive training approved under section 236 and employment and case management services under section 235.” ; and (C) by striking paragraphs (3) through (5) and inserting the following: “(3) Eligibility.— “(A) In general.— A group of workers certified under subchapter A as eligible for adjustment assistance under subchapter A is eligible for benefits described in paragraph (2) under the program established under paragraph (1). “(B) Individual eligibility.— A worker in a group of workers described in subparagraph (A) may elect to receive benefits described in paragraph (2) under the program established under paragraph (1) if the worker— “(i) is at least 50 years of age; “(ii) earns not more than $55,000 each year in wages from reemployment; “(iii) (I) is employed on a full-time basis as defined by the law of the State in which the worker is employed and is not enrolled in a training program approved under section 236; or “(II) is employed at least 20 hours per week and is enrolled in a training program approved under section 236; and “(iv) is not employed at the firm from which the worker was separated. “(4) Eligibility period for payments.— “(A) Worker who has not received trade readjustment allowance.— In the Effective date. case of a worker described in paragraph (3)(B) who has not received a trade readjustment allowance under part I of subchapter B pursuant to the certification described in paragraph (3)(A), the worker may receive benefits described in paragraph (2) for a period not to exceed 2 years beginning on the earlier of— “(i) the date on which the worker exhausts all rights to unemployment insurance based on the separation of the worker from the adversely affected employment that is the basis of the certification; or “(ii) the date on which the worker obtains reemployment described in paragraph (3)(B). “(B) Worker who has received trade readjustment allowance.— In the case of a worker described in paragraph (3)(B) who has received a trade readjustment allowance under part I of subchapter B pursuant to the certification described in paragraph (3)(A), the worker may receive benefits described in paragraph (2) for a period of 104 weeks beginning on the date on which the worker obtains reemployment described in paragraph (3)(B), reduced by the total number of weeks for which the worker received such trade readjustment allowance. “(5) Total amount of payments.— “(A) In general.— The payments described in paragraph (2)(A) made to a worker may not exceed— “(i) $12,000 per worker during the eligibility period under paragraph (4)(A); or “(ii) the amount described in subparagraph (B) per worker during the eligibility period under paragraph (4)(B). “(B) Amount described.— The amount described in this subparagraph is the amount equal to the product of— “(i) $12,000, and “(ii) the ratio of— “(I) the total number of weeks in the eligibility period under paragraph (4)(B) with respect to the worker, to “(II) 104 weeks. “(6) Calculation of amount of payments for certain workers.— “(A) In general.— In the Applicability. case of a worker described in paragraph (3)(B)(iii)(II), paragraph (2)(A) shall be applied by substituting the percentage described in subparagraph (B) for ‘50 percent’. “(B) Percentage described.— The percentage described in this subparagraph is the percentage— “(i) equal to ½ of the ratio of— “(I) the number of weekly hours of employment of the worker referred to in paragraph (3)(B)(iii)(II), to “(II) the number of weekly hours of employment of the worker at the time of separation, but “(ii) in no case more than 50 percent. “(7) Limitation on other benefits.— A worker described in paragraph (3)(B) may not receive a trade readjustment allowance under part I of subchapter B pursuant to the certification described in paragraph (3)(A) during any week for which the worker receives a payment described in paragraph (2)(A).” ; and (3) in subsection (b)(2), by striking “subsection (a)(3)(B)” and inserting “subsection (a)(3)”. (b) Extension of Program.— Section 246(b)(1) of the Trade Act of 1974 (19 U.S.C. 2318(b)(1)) is amended by striking “the date that is 5 years” and all that follows through the end period and inserting “December 31, 2010.”. (c) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by striking the item relating to section 246 and inserting the following: “Sec. 246.  Reemployment trade adjustment assistance program.”. Subpart E— Other Matters SEC. 1851. OFFICE OF TRADE ADJUSTMENT ASSISTANCE. (a) In General.— Subchapter C of chapter 2 of title II of the Trade Act of 1974 (19 U.S.C. 2311 et seq.) is amended by adding at the end the following: “SEC. 249A. OFFICE OF TRADE ADJUSTMENT ASSISTANCE. “(a) Establishment.— There is established in the Department of Labor an office to be known as the Office of Trade Adjustment Assistance (in this section referred to as the ‘Office’). “(b) Head of Office.— The head of the Office shall be an administrator, who shall report directly to the Deputy Assistant Secretary for Employment and Training. “(c) Principal Functions.— The principal functions of the administrator of the Office shall be— “(1) to oversee and implement the administration of trade adjustment assistance program under this chapter; and “(2) to carry out functions delegated to the Secretary of Labor under this chapter, including— “(A) making determinations under section 223; “(B) providing information under section 225 about trade adjustment assistance to workers and assisting such workers to prepare petitions or applications for program benefits; “(C) providing assistance to employers of groups of workers that have filed petitions under section 221 in submitting information required by the Secretary relating to the petitions; “(D) ensuring workers covered by a certification of eligibility under subchapter A receive the employment and case management services described in section 235; “(E) ensuring that States fully comply with agreements entered into under section 239; “(F) advocating for workers applying for benefits available under this chapter; “(G) establishing and overseeing a hotline that workers, employers, and other entities may call to obtain information regarding eligibility criteria, procedural requirements, and benefits available under this chapter; and “(H) carrying out such other duties with respect to this chapter as the Secretary specifies for purposes of this section. “(d) Administration.— “(1) Designation.— The administrator shall designate an employee of the Department of Labor with appropriate experience and expertise to carry out the duties described in paragraph (2). “(2) Duties.— The employee designated under paragraph (1) shall— “(A) receive complaints and requests for assistance related to the trade adjustment assistance program under this chapter; “(B) resolve such complaints and requests for assistance, in coordination with other employees of the Office; “(C) compile basic information concerning such complaints and requests for assistance; and “(D) carry out such other duties with respect to this chapter as the Secretary specifies for purposes of this section.” . (b) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by inserting after the item relating to section 249 the following: “Sec. 249A.  Office of Trade Adjustment Assistance.”. SEC. 1852. ACCOUNTABILITY OF STATE AGENCIES; COLLECTION AND PUBLICATION OF PROGRAM DATA; AGREEMENTS WITH STATES. (a) In General.— Section 239(a) of the Trade Act of 1974 (19 U.S.C. 2311(a)) is amended— (1) by amending clause (2) to read as follows: “(2) in accordance with subsection (f), shall make available to adversely affected workers and adversely affected incumbent workers covered by a certification under subchapter A the employment and case management services described in section 235,”; and (2) by striking “will” each place it appears and inserting “shall”. (b) Form and Manner of Data.— Section 239 of the Trade Act of 1974 (19 U.S.C. 2311) is amended— (1) by redesignating subsections (c) through (g) as subsections (d) through (h), respectively; and (2) by inserting after subsection (b) the following: “(c) Form and Manner of Data.— Each agreement under this subchapter shall— “(1) provide the Secretary with the authority to collect any data the Secretary determines necessary to meet the requirements of this chapter; and “(2) specify the form and manner in which any such data requested by the Secretary shall be reported.” . (c) State Activities.— Section 239(g) of the Trade Act of 1974 (as redesignated) is amended— (1) in paragraph (3), by striking “and” at the end; (2) by amending paragraph (4) to read as follows: “(4) perform outreach to, intake of, and orientation for adversely affected workers and adversely affected incumbent workers covered by a certification under subchapter A with respect to assistance and benefits available under this chapter, and” ; and (3) by adding at the end the following: “(5) make employment and case management services described in section 235 available to adversely affected workers and adversely affected incumbent workers covered by a certification under subchapter A and, if funds provided to carry out this chapter are insufficient to make such services available, make arrangements to make such services available through other Federal programs.” . (d) Reporting Requirement.— Section 239(h) of the Trade Act of 1974 (as redesignated) is amended by striking “1998.” and inserting “1998 (29 U.S.C. 2822(b)) and a description of the State’s rapid response activities under section 221(a)(2)(A).”. (e) Control Measures.— Section 239 of the Trade Act of 1974 (19 U.S.C. 2311), as amended, is further amended by adding at the end the following: “(i) Control Measures.— “(1) In general.— The Secretary Requirements. shall require each cooperating State and cooperating State agency to implement effective control measures and to effectively oversee the operation and administration of the trade adjustment assistance program under this chapter, including by means of monitoring the operation of control measures to improve the accuracy and timeliness of the data being collected and reported. “(2) Definition.— For purposes of paragraph (1), the term ‘control measures’ means measures that— “(A) are internal to a system used by a State to collect data; and “(B) are designed to ensure the accuracy and verifiability of such data. “(j) Data Reporting.— “(1) In general.— Any agreement entered into under this section shall require the cooperating State or cooperating State agency to report to the Secretary on a quarterly basis comprehensive performance accountability data, to consist of— “(A) the core indicators of performance described in paragraph (2)(A); “(B) the additional indicators of performance described in paragraph (2)(B), if any; and “(C) a description of efforts made to improve outcomes for workers under the trade adjustment assistance program. “(2) Core indicators described.— “(A) In general.— The core indicators of performance described in this paragraph are— “(i) the percentage of workers receiving benefits under this chapter who are employed during the second calendar quarter following the calendar quarter in which the workers cease receiving such benefits; “(ii) the percentage of such workers who are employed in each of the third and fourth calendar quarters following the calendar quarter in which the workers cease receiving such benefits; and “(iii) the earnings of such workers in each of the third and fourth calendar quarters following the calendar quarter in which the workers cease receiving such benefits. “(B) Additional indicators.— The Secretary and a cooperating State or cooperating State agency may agree upon additional indicators of performance for the trade adjustment assistance program under this chapter, as appropriate. “(3) Standards with respect to reliability of data.— In preparing Procedures. the quarterly report required by paragraph (1), each cooperating State or cooperating State agency shall establish procedures that are consistent with guidelines to be issued by the Secretary to ensure that the data reported are valid and reliable.” . SEC. 1853. VERIFICATION OF ELIGIBILITY FOR PROGRAM BENEFITS.   Section 239 of the Trade Act of 1974 (19 U.S.C. 2311), as amended, is further amended by adding at the end the following: “(k) Verification of Eligibility for Program Benefits.— “(1) In general.— An agreement under this subchapter shall provide that the State shall periodically redetermine that a worker receiving benefits under this subchapter who is not a citizen or national of the United States remains in a satisfactory immigration status. Once satisfactory immigration status has been initially verified through the immigration status verification system described in section 1137(d) of the Social Security Act (42 U.S.C. 1320b-7(d)) for purposes of establishing a worker’s eligibility for unemployment compensation, the State shall reverify the worker’s immigration status if the documentation provided during initial verification will expire during the period in which that worker is potentially eligible to receive benefits under this subchapter. The State shall conduct such redetermination in a timely manner, utilizing the immigration status verification system described in section 1137(d) of the Social Security Act (42 U.S.C. 1320b-7(d)). “(2) Procedures.— The Secretary shall establish procedures to ensure the uniform application by the States of the requirements of this subsection.” . SEC. 1854. COLLECTION OF DATA AND REPORTS; INFORMATION TO WORKERS. (a) In General.— Subchapter C of chapter 2 of title II of the Trade Act of 1974 (19 U.S.C. 2311 et seq.), as amended, is further amended by adding at the end the following: “SEC. 249B. COLLECTION AND PUBLICATION OF DATA AND REPORTS; INFORMATION TO WORKERS. “(a) In General.— Not later System. than 180 days after the date of the enactment of this section, the Secretary shall implement a system to collect and report the data described in subsection (b), as well as any other information that the Secretary considers appropriate to effectively carry out this chapter. “(b) Data to Be Included.— The system required under subsection (a) shall include collection of and reporting on the following data for each fiscal year: “(1) Data on petitions filed, certified, and denied.— “(A) The number of petitions filed, certified, and denied under this chapter. “(B) The number of workers covered by petitions filed, certified, and denied. “(C) The number of petitions, classified by— “(i) the basis for certification, including increased imports, shifts in production, and other bases of eligibility; and “(ii) congressional district of the United States. “(D) The average time for processing such petitions. “(2) Data on benefits received.— “(A) The number of workers receiving benefits under this chapter. “(B) The number of workers receiving each type of benefit, including training, trade readjustment allowances, employment and case management services, and relocation and job search allowances, and, to the extent feasible, credits for health insurance costs under section 35 of the Internal Revenue Code of 1986. “(C) The average time during which such workers receive each such type of benefit. “(3) Data on training.— “(A) The number of workers enrolled in training approved under section 236, classified by major types of training, including classroom training, training through distance learning, on-the-job training, and customized training. “(B) The number of workers enrolled in full-time training and part-time training. “(C) The average duration of training. “(D) The number of training waivers granted under section 231(c), classified by type of waiver. “(E) The number of workers who complete training and the duration of such training. “(F) The number of workers who do not complete training. “(4) Data on outcomes.— “(A) A summary of the quarterly reports required under section 239(j). “(B) The sectors in which workers are employed after receiving benefits under this chapter. “(5) Data on rapid response activities.— Whether rapid response activities were provided with respect to each petition filed under section 221. “(c) Classification of Data.— To the extent possible, in collecting and reporting the data described in subsection (b), the Secretary shall classify the data by industry, State, and national totals. “(d) Report.— Not later than December 15 of each year, the Secretary shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report that includes— “(1) a summary of the information collected under this section for the preceding fiscal year; “(2) information on the distribution of funds to each State pursuant to section 236(a)(2); and “(3) any recommendations of the Secretary with respect to changes in eligibility requirements, benefits, or training funding under this chapter based on the data collected under this section. “(e) Availability of Data.— “(1) In general.— The Secretary Web posting. shall make available to the public, by publishing on the website of the Department of Labor and by other means, as appropriate— “(A) the report required under subsection (d); “(B) the data collected under this section, in a searchable format; and “(C) a list of cooperating States and cooperating State agencies that failed to submit the data required by this section to the Secretary in a timely manner. “(2) Updates.— The Secretary Deadline. shall update the data under paragraph (1) on a quarterly basis.” . (b) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by inserting after the item relating to section 249A the following: “Sec. 249B.  Collection and publication of data and reports; information to workers.”. (c) Effective Date.— The amendments 19 USC 2323 note. made by this section shall take effect on the date of the enactment of this Act. SEC. 1855. FRAUD AND RECOVERY OF OVERPAYMENTS.   Section 243(a)(1) of the Trade Act of 1974 (19 U.S.C. 2315(a)(1)) is amended— (1) in the matter preceding subparagraph (A)— (A) by striking “may waive” and inserting “shall waive”; and (B) by striking “, in accordance with guidelines prescribed by the Secretary,”; and (2) in subparagraph (B), by striking “would be contrary to equity and good conscience” and inserting “would cause a financial hardship for the individual (or the individual’s household, if applicable) when taking into consideration the income and resources reasonably available to the individual (or household) and other ordinary living expenses of the individual (or household)”. SEC. 1856. SENSE OF CONGRESS ON APPLICATION OF TRADE ADJUSTMENT ASSISTANCE. (a) In General.— Chapter 5 of title II of the Trade Act of 1974 (19 U.S.C. 2391 et seq.) is amended by adding at the end the following: “SEC. 288. SENSE OF CONGRESS.   “It is the sense of Congress that the Secretaries of Labor, Commerce, and Agriculture should apply the provisions of chapter 2 (relating to adjustment assistance for workers), chapter 3 (relating to adjustment assistance for firms), chapter 4 (relating to adjustment assistance for communities), and chapter 6 (relating to adjustment assistance for farmers), respectively, with the utmost regard for the interests of workers, firms, communities, and farmers petitioning for benefits under such chapters.” . (b) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by inserting after the item relating to section 287 the following: “Sec. 288.  Sense of Congress.”. SEC. 1857. CONSULTATIONS IN PROMULGATION OF REGULATIONS.   Section 248 of the Trade Act of 1974 (19 U.S.C. 2320) is amended— (1) by striking “The Secretary shall” and inserting the following: “(a) In General.— The Secretary shall” ; and (2) by adding at the end the following: “(b) Consultations.— Not later Deadline. than 90 days before issuing a regulation under subsection (a), the Secretary shall consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives with respect to the regulation.” . SEC. 1858. TECHNICAL CORRECTIONS. (a) Determinations by Secretary of Labor.— Section 223(c) of the Trade Act of 1974 (19 U.S.C. 2273(c)) is amended by striking “his determination” and inserting “a determination”. (b) Qualifying Requirements for Workers.— Section 231(a) of the Trade Act of 1974 (19 U.S.C. 2291(a)) is amended— (1) in paragraph (1)— (A) in the matter preceding subparagraph (A), by striking “his application” and inserting “the worker’s application”; and (B) in subparagraph (A), by striking “he is covered” and inserting “the worker is covered”; (2) in paragraph (2)— (A) in subparagraph (A), by striking the period and inserting a comma; and (B) in subparagraph (D), by striking “5 U.S.C. 8521(a)(1)” and inserting “section 8521(a)(1) of title 5, United States Code”; and (3) in paragraph (3)— (A) by striking “he” each place it appears and inserting “the worker”; and (B) in subparagraph (C), by striking “him” and inserting “the worker”. (c) Subpoena Power.— Section 249 of the Trade Act of 1974 (19 U.S.C. 2321) is amended— (1) in the section heading, by striking “subpena” and inserting “subpoena”; (2) by striking “subpena” and inserting “subpoena” each place it appears; and (3) in subsection (a), by striking “him” and inserting “the Secretary”. (d) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by striking the item relating to section 249 and inserting the following: “Sec. 249.  Subpoena power.”. PART II— TRADE ADJUSTMENT ASSISTANCE FOR FIRMS SEC. 1861. EXPANSION TO SERVICE SECTOR FIRMS. (a) In General.— Section 251 of the Trade Act of 1974 (19 U.S.C. 2341) is amended by inserting “or service sector firm” after “agricultural firm” each place it appears. (b) Definition of Service Sector Firm.— Section 261 of the Trade Act of 1974 (19 U.S.C. 2351) is amended— (1) by striking “chapter,” and inserting “chapter:”; (2) by striking “the term ‘firm’ ” and inserting the following: “(1) Firm.— The term ‘firm’ ” ; and (3) by adding at the end the following: “(2) Service sector firm.— The term ‘service sector firm’ means a firm engaged in the business of supplying services.” . (c) Conforming Amendments.— (1) Section 251(c)(1)(C) of the Trade Act of 1974 (19 U.S.C. 2341(c)(1)(C)) is amended— (A) by inserting “or services” after “articles” the first place it appears; and (B) by inserting “or services which are supplied” after “produced”. (2) Section 251(c)(2)(B)(ii) of such Act is amended to read as follows: “(ii) Any firm that engages in exploration or drilling for oil or natural gas, or otherwise produces oil or natural gas, shall be considered to be producing articles directly competitive with imports of oil and with imports of natural gas.” . SEC. 1862. MODIFICATION OF REQUIREMENTS FOR CERTIFICATION.   Section 251(c)(1)(B) of the Trade Act of 1974 (19 U.S.C. 2341(c)(1)(B)) is amended to read as follows: “(B) that— “(i) sales or production, or both, of the firm have decreased absolutely, “(ii) sales or production, or both, of an article or service that accounted for not less than 25 percent of the total sales or production of the firm during the 12-month period preceding the most recent 12-month period for which date are available have decreased absolutely, “(iii) sales or production, or both, of the firm during the most recent 12-month period for which data are available have decreased compared to— “(I) the average annual sales or production for the firm during the 24-month period preceding that 12-month period, or “(II) the average annual sales or production for the firm during the 36-month period preceding that 12-month period, and “(iv) sales or production, or both, of an article or service that accounted for not less than 25 percent of the total sales or production of the firm during the most recent 12-month period for which data are available have decreased compared to— “(I) the average annual sales or production for the article or service during the 24-month period preceding that 12-month period, or “(II) the average annual sales or production for the article or service during the 36-month period preceding that 12-month period, and” . SEC. 1863. BASIS FOR DETERMINATIONS.   Section 251 of the Trade Act of 1974 (19 U.S.C. 2341), as amended, is further amended by adding at the end the following: “(e) Basis for Secretary’s Determinations.— For Certification. purposes of subsection (c)(1)(C), the Secretary may determine that there are increased imports of like or directly competitive articles or services, if customers accounting for a significant percentage of the decrease in the sales or production of the firm certify to the Secretary that such customers have increased their imports of such articles or services from a foreign country, either absolutely or relative to their acquisition of such articles or services from suppliers located in the United States. “(f) Notification to Firms of Availability of Benefits.— Upon receiving notice from the Secretary of Labor under section 225 of the identity of a firm that is covered by a certification issued under section 223, the Secretary of Commerce shall notify the firm of the availability of adjustment assistance under this chapter.” . SEC. 1864. OVERSIGHT AND ADMINISTRATION; AUTHORIZATION OF APPROPRIATIONS. (a) In General.— Chapter 3 of title II of the Trade Act of 1974 (19 U.S.C. 2341 et seq.) is amended— (1) by striking sections 254, 255, 256, and 19 USC 2344–2347. 257; (2) by redesignating sections 258, 259, 260, 261, 262, 264, and 265, as 19 USC 2348–2352, 2354, 2355. sections 256, 257, 258, 259, 260, 261, and 262, respectively; and (3) by inserting after section 253 the following: “SEC. 254. OVERSIGHT AND ADMINISTRATION. “(a) In General.— The Secretary Grants. shall, to such extent and in such amounts as are provided in appropriations Acts, provide grants to intermediary organizations (referred to in section 253(b)(1)) throughout the United States pursuant to agreements with such intermediary organizations. Each such agreement shall require the intermediary organization to provide benefits to firms certified under section 251. Deadline. Contracts. The Secretary shall, to the maximum extent practicable, provide by October 1, 2010, that contracts entered into with intermediary organizations be for a 12-month period and that all such contracts have the same beginning date and the same ending date. “(b) Distribution of Funds.— “(1) In general.— Not later Deadline. Methodology. than 90 days after the date of the enactment of this subsection, the Secretary shall develop a methodology for the distribution of funds among the intermediary organizations described in subsection (a). “(2) Prompt initial distribution.— The Criteria. methodology described in paragraph (1) shall ensure the prompt initial distribution of funds and establish additional criteria governing the apportionment and distribution of the remainder of such funds among the intermediary organizations. “(3) Criteria.— The methodology described in paragraph (1) shall include criteria based on the data in the annual report on the trade adjustment assistance for firms program described in section 1866 of the Trade and Globalization Adjustment Assistance Act of 2009. “(c) Requirements for Contracts.— An agreement Guidelines. with an intermediary organization described in subsection (a) shall require the intermediary organization to contract for the supply of services to carry out grants under this chapter in accordance with terms and conditions that are consistent with guidelines established by the Secretary. “(d) Consultations.— “(1) Consultations regarding methodology.— The Secretary shall consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives— “(A) not less than 30 days before finalizing the methodology described in subsection (b); and “(B) not less than 60 days before adopting any changes to such methodology. “(2) Consultations regarding guidelines.— The Secretary shall consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives not less than 60 days before finalizing the guidelines described in subsection (c) or adopting any subsequent changes to such guidelines. “SEC. 255. AUTHORIZATION OF APPROPRIATIONS. “(a) In General.— There are Time period. authorized to be appropriated to the Secretary $50,000,000 for each of the fiscal years 2009 through 2010, and $12,501,000 for the period beginning October 1, 2010, and ending December 31, 2010, to carry out the provisions of this chapter. Amounts appropriated pursuant to this subsection shall— “(1) be Deadline. available to provide adjustment assistance to firms that file a petition for such assistance pursuant to this chapter on or before December 31, 2010; and “(2) otherwise remain available until expended. “(b) Personnel.— Of the amounts appropriated pursuant to this section for each fiscal year, $350,000 shall be available for full-time positions in the Department of Commerce to administer the provisions of this chapter. Establishment. Of such funds the Secretary shall make available to the Economic Development Administration such sums as may be necessary to establish the position of Director of Adjustment Assistance for Firms and such other full-time positions as may be appropriate to administer the provisions of this chapter.” . (b) Residual Authority.— The Secretary of Commerce shall have the authority to modify, terminate, resolve, liquidate, or take any other action with respect to a loan, guarantee, contract, or any other financial assistance that was extended under section 254, 255, 256, or 257 of the Trade Act of 1974 (19 U.S.C. 2344, 2345, 2346, and 2347), as in effect on the day before the effective date set forth in section 1891. (c) Conforming Amendments.— (1) Section 256 of the Trade Act of 1974, as redesignated by subsection (a) of this section, 19 USC 2348. is amended by striking subsection (d). (2) Section 258 of the Trade Act of 1974, as redesignated by subsection (a) of this section, 19 USC 2350. is amended— (A) in the first sentence, by striking “and financial”; and (B) in the last sentence— (i) by striking “sections 253 and 254” and inserting “section 253”; and (ii) by striking “title 28 of the United States Code” and inserting “title 28, United States Code”. (d) Clerical Amendments.— The table of contents of the Trade Act of 1974 is amended by striking the items relating to sections 254, 255, 256, 257, 258, 259, 260, 261, 262, 264, and 265, and inserting the following: “Sec. 254.  Oversight and administration. “Sec. 255.  Authorization of appropriations. “Sec. 256.  Protective provisions. “Sec. 257.  Penalties. “Sec. 258.  Civil actions. “Sec. 259.  Definitions. “Sec. 260.  Regulations. “Sec. 261.  Study by Secretary of Commerce when International Trade Commission begins investigation; action where there is affirmative finding. “Sec. 262.  Assistance to industries.”. (e) Effective Date.— This section and the amendments made by this section shall take effect upon the expiration of the 90-day period beginning on the date of the enactment of this Act, except that subsections (b) and (d) of section 254 of the Trade Act of 1974 (as added by subsection (a) of this section) shall take effect on such date of enactment. SEC. 1865. INCREASED PENALTIES FOR FALSE STATEMENTS.   Section 257 of the Trade Act of 1974, as redesignated by section 1864(a), is 19 USC 2349. amended to read as follows: “SEC. 257. PENALTIES.   “Any person who— “(1) makes a false statement of a material fact knowing it to be false, or knowingly fails to disclose a material fact, or willfully overvalues any security, for the purpose of influencing in any way a determination under this chapter, or for the purpose of obtaining money, property, or anything of value under this chapter, or “(2) makes a false statement of a material fact knowing it to be false, or knowingly fails to disclose a material fact, when providing information to the Secretary during an investigation of a petition under this chapter, shall be imprisoned for not more than 2 years, or fined under title 18, United States Code, or both.” . SEC. 1866. ANNUAL REPORT ON TRADE ADJUSTMENT ASSISTANCE FOR FIRMS. (a) In General.— Not later than December 15, 2009, and each year thereafter, the Secretary of Commerce shall prepare a report containing data regarding the trade adjustment assistance for firms program provided for in chapter 3 of title II of the Trade Act of 1974 (19 U.S.C. 2341 et seq.) for the preceding fiscal year. The data shall include the following: (1) The number of firms that inquired about the program. (2) The number of petitions filed under section 251. (3) The number of petitions certified and denied. (4) The average time for processing petitions. (5) The number of petitions filed and firms certified for each congressional district of the United States. (6) The number of firms that received assistance in preparing their petitions. (7) The number of firms that received assistance developing business recovery plans. (8) The number of business recovery plans approved and denied by the Secretary of Commerce. (9) Sales, employment, and productivity at each firm participating in the program at the time of certification. (10) Sales, employment, and productivity at each firm upon completion of the program and each year for the 2-year period following completion. (11) The financial assistance received by each firm participating in the program. (12) The financial contribution made by each firm participating in the program. (13) The types of technical assistance included in the business recovery plans of firms participating in the program. (14) The number of firms leaving the program before completing the project or projects in their business recovery plans and the reason the project was not completed. (b) Classification of Data.— To the extent possible, in collecting and reporting the data described in subsection (a), the Secretary shall classify the data by intermediary organization, State, and national totals. (c) Report to Congress; Publication.— The Secretary of Commerce shall— (1) submit the report described in subsection (a) to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives; and (2) publish the report in the Federal Register and on the website of the Department of Commerce. (d) Protection of Confidential Information.— The Secretary of Commerce may not release information described in subsection (a) that the Secretary considers to be confidential business information unless the person submitting the confidential business information had notice, at the time of submission, that such information would be released by the Secretary, or such person subsequently consents to the release of the information. Nothing in this subsection shall be construed to prohibit the Secretary from providing such confidential business information to a court in camera or to another party under a protective order issued by a court. SEC. 1867. TECHNICAL CORRECTIONS. (a) In General.— Section 251 of the Trade Act of 1974 (19 U.S.C. 2341), as amended, is further amended— (1) in subsection (a), by striking “he has” and inserting “the Secretary has”; and (2) in subsection (d), by striking “60 days” and inserting “40 days”. (b) Technical Assistance.— Section 253(a)(3) of the Trade Act of 1974 (19 U.S.C. 2343(a)(3)) is amended by striking “of a certified firm” and inserting “to a certified firm”. PART III— TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES SEC. 1871. PURPOSE.   The purpose of the amendments made by this part is to assist communities impacted by trade with economic adjustment through the coordination of Federal, State, and local resources, the creation of community-based development strategies, and the development and provision of programs that meet the training needs of workers covered by certifications under section 223. SEC. 1872. TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES. (a) In General.— Chapter 4 of title II of the Trade Act of 1974 (19 U.S.C. 2371 et seq.) is amended to read as follows: “CHAPTER 4— TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES “Subchapter A— Trade Adjustment Assistance for Communities “SEC. 271. DEFINITIONS.   “In this subchapter: “(1) Agricultural commodity producer.— The term ‘agricultural commodity producer’ has the meaning given that term in section 291. “(2) Community.— The term ‘community’ means a city, county, or other political subdivision of a State or a consortium of political subdivisions of a State. “(3) Community impacted by trade.— The term ‘community impacted by trade’ means a community described in section 273(b)(2). “(4) Eligible community.— The term ‘eligible community’ means a community that the Secretary has determined under section 273(b)(1) is eligible to apply for assistance under this subchapter. “(5) Secretary.— The term ‘Secretary’ means the Secretary of Commerce. “SEC. 272. ESTABLISHMENT OF TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES PROGRAM.   “Not Deadline. later than August 1, 2009, the Secretary shall establish a trade adjustment assistance for communities program at the Department of Commerce under which the Secretary shall— “(1) provide technical assistance under section 274 to communities impacted by trade to facilitate the economic adjustment of those communities; and “(2) award grants to communities impacted by trade to carry out strategic plans developed under section 276. “SEC. 273. ELIGIBILITY; NOTIFICATION. “(a) Petition.— “(1) In general.— A community may submit a petition to the Secretary for an affirmative determination under subsection (b)(1) that the community is eligible to apply for assistance under this subchapter if— “(A) on or after August 1, 2009, one or more certifications described in subsection (b)(3) are made with respect to the community; and “(B) the community submits the petition not later than 180 days after the date of the most recent certification. “(2) Special rule with respect to certain communities.— In the Time period. case of a community with respect to which one or more certifications described in subsection (b)(3) were made on or after January 1, 2007, and before August 1, 2009, the community may submit not later than February 1, 2010, a petition to the Secretary for an affirmative determination under subsection (b)(1). “(b) Affirmative Determination.— “(1) In general.— The Secretary shall make an affirmative determination that a community is eligible to apply for assistance under this subchapter if the Secretary determines that the community is a community impacted by trade. “(2) Community impacted by trade.— A community is a community impacted by trade if— “(A) one or more certifications described in paragraph (3) are made with respect to the community; and “(B) the Secretary determines that the community is significantly affected by the threat to, or the loss of, jobs associated with any such certification. “(3) Certification described.— A certification described in this paragraph is a certification— “(A) by the Secretary of Labor that a group of workers in the community is eligible to apply for assistance under section 223; “(B) by the Secretary of Commerce that a firm located in the community is eligible to apply for adjustment assistance under section 251; or “(C) by the Secretary of Agriculture that a group of agricultural commodity producers in the community is eligible to apply for adjustment assistance under section 293. “(c) Notifications.— “(1) Notification to the governor.— The Governor of a State shall be notified promptly— “(A) by the Secretary of Labor, upon making a determination that a group of workers in the State is eligible for assistance under section 223; “(B) by the Secretary of Commerce, upon making a determination that a firm in the State is eligible for assistance under section 251; and “(C) by the Secretary of Agriculture, upon making a determination that a group of agricultural commodity producers in the State is eligible for assistance under section 293. “(2) Notification to community.— Upon making an affirmative determination under subsection (b)(1) that a community is eligible to apply for assistance under this subchapter, the Secretary shall promptly notify the community and the Governor of the State in which the community is located— “(A) of the affirmative determination; “(B) of the applicable provisions of this subchapter; and “(C) of the means for obtaining assistance under this subchapter and other appropriate economic assistance that may be available to the community. “SEC. 274. TECHNICAL ASSISTANCE. “(a) In General.— The Secretary shall provide comprehensive technical assistance to an eligible community to assist the community to— “(1) diversify and strengthen the economy in the community; “(2) identify significant impediments to economic development that result from the impact of trade on the community; and “(3) develop a strategic plan under section 276 to address economic adjustment and workforce dislocation in the community, including unemployment among agricultural commodity producers. “(b) Coordination of Federal Response.— The Secretary shall coordinate the Federal response to an eligible community by— “(1) identifying Federal, State, and local resources that are available to assist the community in responding to economic distress; and “(2) assisting the community in accessing available Federal assistance and ensuring that such assistance is provided in a targeted, integrated manner. “(c) Interagency Community Assistance Working Group.— “(1) In general.— The Secretary Establishment. shall establish an interagency Community Assistance Working Group, to be chaired by the Secretary or the Secretary’s designee, which shall assist the Secretary with the coordination of the Federal response pursuant to subsection (b). “(2) Membership.— The Working Group shall consist of representatives of any Federal department or agency with responsibility for providing economic adjustment assistance, including the Department of Agriculture, the Department of Defense, the Department of Education, the Department of Labor, the Department of Housing and Urban Development, the Department of Health and Human Services, the Small Business Administration, the Department of the Treasury, and any other Federal, State, or regional public department or agency the Secretary determines to be appropriate. “SEC. 275. GRANTS FOR ELIGIBLE COMMUNITIES. “(a) In General.— The Secretary may award a grant under this section to an eligible community to assist the community in carrying out any project or program that is included in a strategic plan developed by the community under section 276. “(b) Application.— “(1) In general.— An eligible community seeking to receive a grant under this section shall submit a grant application to the Secretary that contains— “(A) the strategic plan developed by the community under section 276(a)(1)(A) and approved by the Secretary under section 276(a)(1)(B); and “(B) a description of the project or program included in the strategic plan with respect to which the community seeks the grant. “(2) Coordination among grant programs.— If an entity in an eligible community is seeking or plans to seek a Community College and Career Training Grant under section 278 or a Sector Partnership Grant under section 279A while the eligible community is seeking a grant under this section, the eligible community shall include in the grant application a description of how the eligible community will integrate any projects or programs carried out using a grant under this section with any projects or programs that may be carried out using such other grants. “(c) Limitation.— An eligible community may not be awarded more than $5,000,000 under this section. “(d) Cost-Sharing.— “(1) Federal share.— The Federal share of a project or program for which a grant is awarded under this section may not exceed 95 percent of the cost of such project or program. “(2) Community share.— The Secretary shall require, as a condition of awarding a grant to an eligible community under this section, that the eligible community contribute not less than an amount equal to 5 percent of the amount of the grant toward the cost of the project or program for which the grant is awarded. “(e) Grants to Small- and Medium-Sized Communities.— The Secretary shall give priority to grant applications submitted under this section by eligible communities that are small- and medium-sized communities. “(f) Annual Report.— Not later than December 15 in each of the calendar years 2009 through 2011, the Secretary shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report— “(1) describing each grant awarded under this section during the preceding fiscal year; and “(2) assessing the impact on the eligible community of each such grant awarded in a fiscal year before the fiscal year referred to in paragraph (1). “SEC. 276. STRATEGIC PLANS. “(a) In General.— “(1) Development.— An eligible community that intends to apply for a grant under section 275 shall— “(A) develop a strategic plan for the community’s economic adjustment to the impact of trade; and “(B) submit the plan to the Secretary for evaluation and approval. “(2) Involvement of private and public entities.— “(A) In general.— To the extent practicable, an eligible community shall consult with entities described in subparagraph (B) in developing a strategic plan under paragraph (1). “(B) Entities described.— Entities described in this subparagraph are public and private entities within the eligible community, including— “(i) local, county, or State government agencies serving the community; “(ii) firms, including small- and medium-sized firms, within the community; “(iii) local workforce investment boards established under section 117 of the Workforce Investment Act of 1998 (29 U.S.C. 2832); “(iv) labor organizations, including State labor federations and labor-management initiatives, representing workers in the community; and “(v) educational institutions, local educational agencies, or other training providers serving the community. “(b) Contents.— The strategic plan shall, at a minimum, contain the following: “(1) A description and analysis of the capacity of the eligible community to achieve economic adjustment to the impact of trade. “(2) An analysis of the economic development challenges and opportunities facing the community as well as the strengths and weaknesses of the economy of the community. “(3) An assessment of the commitment of the eligible community to the strategic plan over the long term and the participation and input of members of the community affected by economic dislocation. “(4) A description of the role and the participation of the entities described in subsection (a)(2)(B) in developing the strategic plan. “(5) A description of the projects to be undertaken by the eligible community under the strategic plan. “(6) A description of how the strategic plan and the projects to be undertaken by the eligible community will facilitate the community’s economic adjustment. “(7) A description of the educational and training programs available to workers in the eligible community and the future employment needs of the community. “(8) An assessment of the cost of implementing the strategic plan, the timing of funding required by the eligible community to implement the strategic plan, and the method of financing to be used to implement the strategic plan. “(9) A strategy for continuing the economic adjustment of the eligible community after the completion of the projects described in paragraph (5). “(c) Grants to Develop Strategic Plans.— “(1) In general.— The Secretary, upon receipt of an application from an eligible community, may award a grant to the community to assist the community in developing a strategic plan under subsection (a)(1). A grant awarded under this paragraph shall not exceed 75 percent of the cost of developing the strategic plan. “(2) Funds to be used.— Of the funds appropriated pursuant to section 277(c), the Secretary may make available not more than $25,000,000 for each of the fiscal years 2009 and 2010, and $6,250,000 for the period beginning October 1, 2010, and ending December 31, 2010, to provide grants to eligible communities under paragraph (1). “SEC. 277. GENERAL PROVISIONS. “(a) Regulations.— “(1) In general.— The Secretary shall prescribe such regulations as are necessary to carry out the provisions of this subchapter, including— “(A) establishing specific guidelines for the submission and evaluation of strategic plans under section 276; “(B) establishing specific guidelines for the submission and evaluation of grant applications under section 275; and “(C) administering the grant programs established under sections 275 and 276. “(2) Consultations.— The Secretary shall consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives not less than 90 days prior to promulgating any final rule or regulation pursuant to paragraph (1). “(b) Personnel.— The Secretary shall designate such staff as may be necessary to carry out the responsibilities described in this subchapter. “(c) Authorization of Appropriations.— “(1) In general.— There are authorized to be appropriated to the Secretary $150,000,000 for each of the fiscal years 2009 and 2010, and $37,500,000 for the period beginning October 1, 2010, and ending December 31, 2010, to carry out this subchapter. “(2) Availability.— Amounts appropriated pursuant to this subchapter— “(A) shall be available to provide adjustment assistance to communities that have been approved for assistance pursuant to this chapter on or before December 31, 2010; and “(B) shall otherwise remain available until expended. “(3) Supplement not supplant.— Funds appropriated pursuant to this subchapter shall be used to supplement and not supplant other Federal, State, and local public funds expended to provide economic development assistance for communities. “Subchapter B— Community College and Career Training Grant Program “SEC. 278. COMMUNITY COLLEGE AND CAREER TRAINING GRANT PROGRAM. “(a) Grants Authorized.— “(1) In general.— Beginning August 1, 2009, the Secretary may award Community College and Career Training Grants to eligible institutions for the purpose of developing, offering, or improving educational or career training programs for workers eligible for training under section 236. “(2) Limitations.— An eligible institution may not be awarded— “(A) more than one grant under this section; or “(B) a grant under this section in excess of $1,000,000. “(b) Definitions.— In this section: “(1) Eligible institution.— The term ‘eligible institution’ means an institution of higher education (as defined in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002)), but only with respect to a program offered by the institution that can be completed in not more than 2 years. “(2) Secretary.— The term ‘Secretary’ means the Secretary of Labor. “(c) Grant Proposals.— “(1) In general.— An eligible institution seeking to receive a grant under this section shall submit a grant proposal to the Secretary at such time, in such manner, and containing such information as the Secretary may require. “(2) Guidelines.— Not later than June 1, 2009, the Secretary shall— “(A) promulgate guidelines for the submission of grant proposals under this section; and “(B) publish and maintain such guidelines on the website of the Department of Labor. “(3) Assistance.— The Secretary shall offer assistance in preparing a grant proposal to any eligible institution that requests such assistance. “(4) General requirements for grant proposals.— “(A) In general.— A grant proposal submitted to the Secretary under this section shall include a detailed description of— “(i) the specific project for which the grant proposal is submitted, including the manner in which the grant will be used to develop, offer, or improve an educational or career training program that is suited to workers eligible for training under section 236; “(ii) the extent to which the project for which the grant proposal is submitted will meet the educational or career training needs of workers in the community served by the eligible institution who are eligible for training under section 236; “(iii) the extent to which the project for which the grant proposal is submitted fits within any overall strategic plan developed by an eligible community under section 276; “(iv) the extent to which the project for which the grant proposal is submitted relates to any project funded by a Sector Partnership Grant awarded under section 279A; and “(v) any previous experience of the eligible institution in providing educational or career training programs to workers eligible for training under section 236. “(B) Absence of experience.— The absence of any previous experience in providing educational or career training programs described in subparagraph (A)(v) shall not automatically disqualify an eligible institution from receiving a grant under this section. “(5) Community outreach required.— In order to be considered by the Secretary, a grant proposal submitted by an eligible institution under this section shall— “(A) demonstrate that the eligible institution— “(i) reached out to employers, and other entities described in section 276(a)(2)(B) to identify— “(I) any shortcomings in existing educational and career training opportunities available to workers in the community; and “(II) any future employment opportunities within the community and the educational and career training skills required for workers to meet the future employment demand; “(ii) reached out to other similarly situated institutions in an effort to benefit from any best practices that may be shared with respect to providing educational or career training programs to workers eligible for training under section 236; and “(iii) reached out to any eligible partnership in the community that has sought or received a Sector Partnership Grant under section 279A to enhance the effectiveness of each grant and avoid duplication of efforts; and “(B) include a detailed description of— “(i) the extent and outcome of the outreach conducted under subparagraph (A); “(ii) the extent to which the project for which the grant proposal is submitted will contribute to meeting any shortcomings identified under subparagraph (A)(i)(I) or any educational or career training needs identified under subparagraph (A)(i)(II); and “(iii) the extent to which employers, including small- and medium-sized firms within the community, have demonstrated a commitment to employing workers who would benefit from the project for which the grant proposal is submitted. “(d) Criteria for Award of Grants.— “(1) In general.— Subject to the appropriation of funds, the Secretary shall award a grant under this section based on— “(A) a determination of the merits of the grant proposal submitted by the eligible institution to develop, offer, or improve educational or career training programs to be made available to workers eligible for training under section 236; “(B) an evaluation of the likely employment opportunities available to workers who complete an educational or career training program that the eligible institution proposes to develop, offer, or improve; and “(C) an evaluation of prior demand for training programs by workers eligible for training under section 236 in the community served by the eligible institution, as well as the availability and capacity of existing training programs to meet future demand for training programs. “(2) Priority for certain communities.— In awarding grants under this section, the Secretary shall give priority to an eligible institution that serves a community that the Secretary of Commerce has determined under section 273 is eligible to apply for assistance under subchapter A within the 5-year period preceding the date on which the grant proposal is submitted to the Secretary under this section. “(3) Matching requirements.— A grant awarded under this section may not be used to satisfy any private matching requirement under any other provision of law. “(e) Annual Report.— Not later than December 15 in each of the calendar years 2009 through 2011, the Secretary shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report— “(1) describing each grant awarded under this section during the preceding fiscal year; and “(2) assessing the impact of each award of a grant under this section in a fiscal year preceding the fiscal year referred to in paragraph (1) on workers receiving training under section 236. “SEC. 279. AUTHORIZATION OF APPROPRIATIONS. “(a) Authorization of Appropriations.— There are authorized to be appropriated to the Secretary of Labor $40,000,000 for each of the fiscal years 2009 and 2010, and $10,000,000 for the period beginning October 1, 2010, and ending December 31, 2010, to fund the Community College and Career Training Grant Program. Funds appropriated pursuant to this section shall remain available until expended. “(b) Supplement Not Supplant.— Funds appropriated pursuant to this section shall be used to supplement and not supplant other Federal, State, and local public funds expended to support community college and career training programs. “Subchapter C— Industry or Sector Partnership Grant Program for Communities Impacted by Trade “SEC. 279A. INDUSTRY OR SECTOR PARTNERSHIP GRANT PROGRAM FOR COMMUNITIES IMPACTED BY TRADE. “(a) Purpose.— The purpose of this subchapter is to facilitate efforts by industry or sector partnerships to strengthen and revitalize industries and create employment opportunities for workers in communities impacted by trade. “(b) Definitions.— In this subchapter: “(1) Community impacted by trade.— The term ‘community impacted by trade’ has the meaning given that term in section 271. “(2) Dislocated worker.— The term ‘dislocated worker’ means a worker who has been totally or partially separated, or is threatened with total or partial separation, from employment in an industry or sector in a community impacted by trade. “(3) Eligible partnership.— The term ‘eligible partnership’ means a voluntary partnership composed of public and private persons, firms, or other entities within a community impacted by trade, that shall include representatives of— “(A) an industry or sector within the community, including an industry association; “(B) local, county, or State government; “(C) multiple firms in the industry or sector, including small- and medium-sized firms, within the community; “(D) local workforce investment boards established under section 117 of the Workforce Investment Act of 1998 (29 U.S.C. 2832); “(E) labor organizations, including State labor federations and labor-management initiatives, representing workers in the community; and “(F) educational institutions, local educational agencies, or other training providers serving the community. “(4) Lead entity.— The term ‘lead entity’ means— “(A) an entity designated by the eligible partnership to be responsible for submitting a grant proposal under subsection (e) and serving as the eligible partnership’s fiscal agent in expending any Sector Partnership Grant awarded under this section; or “(B) a State agency designated by the Governor of the State to carry out the responsibilities described in subparagraph (A). “(5) Secretary.— The term ‘Secretary’ means the Secretary of Labor. “(6) Targeted industry or sector.— The term ‘targeted industry or sector’ means the industry or sector represented by an eligible partnership. “(c) Sector Partnership Grants Authorized.— Beginning Effective date. on August 1, 2009, and subject to the appropriation of funds, the Secretary shall award Sector Partnership Grants to eligible partnerships to assist the eligible partnerships in carrying out projects, over periods of not more than 3 years, to strengthen and revitalize industries and sectors and create employment opportunities for dislocated workers. “(d) Use of Sector Partnership Grants.— An eligible partnership may use a Sector Partnership Grant to carry out any project that the Secretary determines will further the purpose of this subchapter, which may include— “(1) identifying the skill needs of the targeted industry or sector and any gaps in the available supply of skilled workers in the community impacted by trade, and developing strategies for filling the gaps, including by— “(A) developing systems to better link firms in the targeted industry or sector to available skilled workers; “(B) helping firms in the targeted industry or sector to obtain access to new sources of qualified job applicants; “(C) retraining dislocated and incumbent workers; or “(D) facilitating the training of new skilled workers by aligning the instruction provided by local suppliers of education and training services with the needs of the targeted industry or sector; “(2) analyzing the skills and education levels of dislocated and incumbent workers and developing training to address skill gaps that prevent such workers from obtaining jobs in the targeted industry or sector; “(3) helping firms, especially small- and medium-sized firms, in the targeted industry or sector increase their productivity and the productivity of their workers; “(4) helping such firms retain incumbent workers; “(5) developing learning consortia of small- and medium-sized firms in the targeted industry or sector with similar training needs to enable the firms to combine their purchases of training services, and thereby lower their training costs; “(6) providing information and outreach activities to firms in the targeted industry or sector regarding the activities of the eligible partnership and other local service suppliers that could assist the firms in meeting needs for skilled workers; “(7) seeking, applying, and disseminating best practices learned from similarly situated communities impacted by trade in the development and implementation of economic growth and revitalization strategies; and “(8) identifying additional public and private resources to support the activities described in this subsection, which may include the option to apply for a community grant under section 275 or a Community College and Career Training Grant under section 278 (subject to meeting any additional requirements of those sections). “(e) Grant Proposals.— “(1) In general.— The lead entity of an eligible partnership seeking to receive a Sector Partnership Grant under this section shall submit a grant proposal to the Secretary at such time, in such manner, and containing such information as the Secretary may require. “(2) General requirements of grant proposals.— A grant proposal submitted under paragraph (1) shall, at a minimum— “(A) identify the members of the eligible partnership; “(B) identify the targeted industry or sector for which the eligible partnership intends to carry out projects using the Sector Partnership Grant; “(C) describe the goals that the eligible partnership intends to achieve to promote the targeted industry or sector; “(D) describe the projects that the eligible partnership will undertake to achieve such goals; “(E) demonstrate that the eligible partnership has the organizational capacity to carry out the projects described in subparagraph (D); “(F) explain— “(i) whether— “(I) the community impacted by trade has sought or received a community grant under section 275; “(II) an eligible institution in the community has sought or received a Community College and Career Training Grant under section 278; or “(III) any other entity in the community has received funds pursuant to any other federally funded training project; and “(ii) how the eligible partnership will coordinate its use of a Sector Partnership Grant with the use of such other grants or funds in order to enhance the effectiveness of each grant and any such funds and avoid duplication of efforts; and “(G) include performance measures, developed based on the performance measures issued by the Secretary under subsection (g)(2), and a timeline for measuring progress toward achieving the goals described in subparagraph (C). “(f) Award of Grants.— “(1) In general.— Upon application by the lead entity of an eligible partnership, the Secretary may award a Sector Partnership Grant to the eligible partnership to assist the partnership in carrying out any of the projects in the grant proposal that the Secretary determines will further the purposes of this subchapter. “(2) Limitations.— An eligible partnership may not be awarded— “(A) more than one Sector Partnership Grant; or “(B) a total grant award under this subchapter in excess of— “(i) except as provided in clause (ii), $2,500,000; or “(ii) in the case of an eligible partnership located within a community impacted by trade that is not served by an institution receiving a Community College and Career Training Grant under section 278, $3,000,000. “(g) Administration by the Secretary.— “(1) Technical assistance and oversight.— “(A) In general.— The Secretary shall provide technical assistance to, and oversight of, the lead entity of an eligible partnership in applying for and administering Sector Partnership Grants awarded under this section. “(B) Technical assistance.— Technical assistance provided under subparagraph (A) shall include providing conferences and such other methods of collecting and disseminating information on best practices developed by eligible partnerships as the Secretary determines appropriate. “(C) Grants or contracts for technical assistance.— The Secretary may award a grant or contract to one or more national or State organizations to provide technical assistance to foster the planning, formation, and implementation of eligible partnerships. “(2) Performance measures.— The Secretary shall issue a range of performance measures, with quantifiable benchmarks, and methodologies that eligible partnerships may use to measure progress toward the goals described in subsection (e). In developing such measures, the Secretary shall consider the benefits of the eligible partnership and its activities for workers, firms, industries, and communities. “(h) Reports.— “(1) Progress report.— Not later than 1 year after receiving a Sector Partnership Grant, and 3 years thereafter, the lead entity shall submit to the Secretary, on behalf of the eligible partnership, a report containing— “(A) a detailed description of the progress made toward achieving the goals described in subsection (e)(2)(C), using the performance measures required under subsection (e)(2)(G); “(B) a detailed evaluation of the impact of the grant award on workers and employers in the community impacted by trade; and “(C) a detailed description of all expenditures of funds awarded to the eligible partnership under the Sector Partnership Grant approved by the Secretary under this subchapter. “(2) Annual report.— Not later than December 15 in each of the calendar years 2009 through 2011, the Secretary shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report— “(A) describing each Sector Partnership Grant awarded to an eligible partnership during the preceding fiscal year; and “(B) assessing the impact of each Sector Partnership Grant awarded in a fiscal year preceding the fiscal year referred to in subparagraph (A) on workers and employers in communities impacted by trade. “SEC. 279B. AUTHORIZATION OF APPROPRIATIONS. “(a) In General.— There are authorized to be appropriated to the Secretary of Labor $40,000,000 for each of the fiscal years 2009 and 2010, and $10,000,000 for the period beginning October 1, 2010, and ending December 31, 2010, to carry out the Sector Partnership Grant program under section 279A. Funds appropriated pursuant to this section shall remain available until expended. “(b) Supplement Not Supplant.— Funds appropriated pursuant to this section shall be used to supplement and not supplant other Federal, State, and local public funds expended to support the economic development of local communities. “(c) Administrative Costs.— The Secretary may retain not more than 5 percent of the funds appropriated pursuant to this section for each fiscal year to administer the Sector Partnership Grant program under section 279A. “Subchapter D— General Provisions “SEC. 279C. RULE OF CONSTRUCTION.   “Nothing in this chapter prevents a worker from receiving trade adjustment assistance under chapter 2 of this title at the same time the worker is receiving assistance in any manner from— “(1) a community receiving a community grant under subchapter A; “(2) an eligible institution receiving a Community College and Career Training Grant under subchapter B; or “(3) an eligible partnership receiving a Sector Partnership Grant under subchapter C.” . SEC. 1873. CONFORMING AMENDMENTS. (a) Table of Contents.— The table of contents of the Trade Act of 1974 is amended by striking the items relating to chapter 4 of title II and inserting the following: “Chapter 4— Trade Adjustment Assistance for Communities “Subchapter A— Trade Adjustment Assistance for Communities “Sec. 271.  Definitions. “Sec. 272.  Establishment of trade adjustment assistance for communities program. “Sec. 273.  Eligibility; notification. “Sec. 274.  Technical assistance. “Sec. 275.  Grants for eligible communities. “Sec. 276.  Strategic plans. “Sec. 277.  General provisions. “Subchapter B— Community College and Career Training Grant Program “Sec. 278.  Community college and career training grant program. “Sec. 279.  Authorization of appropriations. “Subchapter C— Industry or Sector Partnership Grant Program for Communities Impacted by Trade “Sec. 279A.  Industry or sector partnership grant program for communities impacted by trade. “Sec. 279B.  Authorization of appropriations. “Subchapter D— General Provisions “Sec. 279C.  Rule of construction.” (b) Judicial Review.— (1) Section 284(a) of the Trade Act of 1974 (19 U.S.C. 2395(a)) is amended— (A) by inserting “or 296” after “section 293”; (B) by striking “or any other interested domestic party” and inserting “or authorized representative of a community”; and (C) by striking “section 271” and inserting “section 273”. (2) Section 1581(d) of title 28, United States Code, is amended— (A) in paragraph (2), by striking “; and” and inserting a semicolon; (B) in paragraph (3)— (i) by striking “271” and inserting “273”; and (ii) by striking the period and inserting “; and”; and (C) by adding at the end the following: “(4) any final determination of the Secretary of Agriculture under section 293 or 296 of the Trade Act of 1974 (19 U.S.C. 2401b) with respect to the eligibility of a group of agricultural commodity producers for adjustment assistance under such Act.” . PART IV— TRADE ADJUSTMENT ASSISTANCE FOR FARMERS SEC. 1881. DEFINITIONS.   Section 291 of the Trade Act of 1974 (19 U.S.C. 2401) is amended— (1) by amending paragraph (1) to read as follows: “(1) Agricultural commodity.— The term ‘agricultural commodity’ includes— “(A) any agricultural commodity (including livestock) in its raw or natural state; “(B) any class of goods within an agricultural commodity; and “(C) in the case of an agricultural commodity producer described in paragraph (2)(B), wild-caught aquatic species.” ; (2) by amending paragraph (2) to read as follows: “(2) Agricultural commodity producer.— The term ‘agricultural commodity producer’ means— “(A) a person that shares in the risk of producing an agricultural commodity and that is entitled to a share of the commodity for marketing, including an operator, a sharecropper, or a person that owns or rents the land on which the commodity is produced; or “(B) a person that reports gain or loss from the trade or business of fishing on the person’s annual Federal income tax return for the taxable year that most closely corresponds to the marketing year with respect to which a petition is filed under section 292.” ; and (3) by adding at the end the following: “(7) Marketing year.— The term ‘marketing year’ means— “(A) a marketing year designated by the Secretary with respect to an agricultural commodity; or “(B) in the case of an agricultural commodity with respect to which the Secretary does not designate a marketing year, a calendar year.” . SEC. 1882. ELIGIBILITY. (a) In General.— Section 292 of the Trade Act of 1974 (19 U.S.C. 2401a) is amended by striking subsections (c) through (e) and inserting the following: “(c) Group Eligibility Requirements.— Certification. The Secretary shall certify a group of agricultural commodity producers as eligible to apply for adjustment assistance under this chapter if the Secretary determines that— “(1) (A) the national average price of the agricultural commodity produced by the group during the most recent marketing year for which data are available is less than 85 percent of the average of the national average price for the commodity in the 3 marketing years preceding such marketing year; “(B) the quantity of production of the agricultural commodity produced by the group during such marketing year is less than 85 percent of the average of the quantity of production of the commodity produced by the group in the 3 marketing years preceding such marketing year; “(C) the value of production of the agricultural commodity produced by the group during such marketing year is less than 85 percent of the average value of production of the commodity produced by the group in the 3 marketing years preceding such marketing year; or “(D) the cash receipts for the agricultural commodity produced by the group during such marketing year are less than 85 percent of the average of the cash receipts for the commodity produced by the group in the 3 marketing years preceding such marketing year; “(2) the volume of imports of articles like or directly competitive with the agricultural commodity produced by the group in the marketing year with respect to which the group files the petition increased compared to the average volume of such imports during the 3 marketing years preceding such marketing year; and “(3) the increase in such imports contributed importantly to the decrease in the national average price, quantity of production, or value of production of, or cash receipts for, the agricultural commodity, as described in paragraph (1). “(d) Eligibility of Certain Other Producers.— An agricultural commodity producer or group of producers that resides outside of the State or region identified in the petition filed under subsection (a) may file a request to become a party to that petition not later than 15 days after the date the notice is published in the Federal Register under subsection (a) with respect to that petition. “(e) Treatment of Classes of Goods Within a Commodity.— In any case in which there are separate classes of goods within an agricultural commodity, the Secretary shall treat each class as a separate commodity in determining under subsection (c)— “(1) group eligibility; “(2) the national average price, quantity of production, or value of production, or cash receipts; and “(3) the volume of imports.” . (b) Conforming Amendments.— Section 293 of the Trade Act of 1974 (19 U.S.C. 2401b) is amended— (1) in subsection (a), by striking “section 292 (c) or (d), as the case may be,” and inserting “section 292(c)”; and (2) in subsection (c), by striking “decline in price for” and inserting “decrease in the national average price, quantity of production, or value of production of, or cash receipts for,”. SEC. 1883. BENEFITS. (a) In General.— Section 296 of the Trade Act of 1974 (19 U.S.C. 2401e) is amended to read as follows: “SEC. 296. QUALIFYING REQUIREMENTS AND BENEFITS FOR AGRICULTURAL COMMODITY PRODUCERS. “(a) In General.— “(1) Requirements.— “(A) In general.— Deadline. Benefits under this chapter shall be available to an agricultural commodity producer covered by a certification under this chapter who files an application for such benefits not later than 90 days after the date on which the Secretary makes a determination and issues a certification of eligibility under section 293, if the producer submits to the Secretary sufficient information to establish that— “(i) the producer produced the agricultural commodity covered by the application filed under this subsection in the marketing year with respect to which the petition is filed and in at least 1 of the 3 marketing years preceding that marketing year; “(ii) (I) the quantity of the agricultural commodity that was produced by the producer in the marketing year with respect to which the petition is filed has decreased compared to the most recent marketing year preceding that marketing year for which data are available; or “(II) (aa) the price received for the agricultural commodity by the producer during the marketing year with respect to which the petition is filed has decreased compared to the average price for the commodity received by the producer in the 3 marketing years preceding that marketing year; or “(bb) the county level price maintained by the Secretary for the agricultural commodity on the date on which the petition is filed has decreased compared to the average county level price for the commodity in the 3 marketing years preceding the date on which the petition is filed; and “(iii) the producer is not receiving— “(I) cash benefits under chapter 2 or 3; or “(II) benefits based on the production of an agricultural commodity covered by another petition filed under this chapter. “(B) Special rule with respect to crops not grown every year.— For purposes of subparagraph (A)(ii)(II)(aa), if a petition is filed with respect to an agricultural commodity that is not produced by the producer every year, an agricultural commodity producer producing that commodity may establish the average price received for the commodity by the producer in the 3 marketing years preceding the year with respect to which the petition is filed by using average price data for the 3 most recent marketing years in which the producer produced the commodity and for which data are available. “(2) Limitations based on adjusted gross income.— “(A) In general.— Notwithstanding any other provision of this chapter, an agricultural commodity producer shall not be eligible for assistance under this chapter in any year in which the average adjusted gross income (as defined in section 1001D(a) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(a))) of the producer exceeds the level set forth in subparagraph (A) or (B) of section 1001D(b)(1) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(b)(1)), whichever is applicable. “(B) Demonstration of compliance.— An agricultural commodity producer shall provide to the Secretary such information as the Secretary determines necessary to demonstrate that the producer is in compliance with the limitation under subparagraph (A). “(C) Counter-cyclical and acre payments.— The total amount of payments made to an agricultural commodity producer under this chapter during any crop year may not exceed the limitations on payments set forth in subsections (b)(2), (b)(3), (c)(2), and (c)(3) of section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308). “(b) Technical Assistance.— “(1) Initial technical assistance.— “(A) In general.— An agricultural commodity producer that files an application and meets the requirements under subsection (a)(1) shall be entitled to receive initial technical assistance designed to improve the competitiveness of the production and marketing of the agricultural commodity with respect to which the producer was certified under this chapter. Such assistance shall include information regarding— “(i) improving the yield and marketing of that agricultural commodity; and “(ii) the feasibility and desirability of substituting one or more alternative agricultural commodities for that agricultural commodity. “(B) Transportation and subsistence expenses.— “(i) In general.— The Secretary may authorize supplemental assistance necessary to defray reasonable transportation and subsistence expenses incurred by an agricultural commodity producer in connection with initial technical assistance under subparagraph (A) if such assistance is provided at facilities that are not within normal commuting distance of the regular place of residence of the producer. “(ii) Exceptions.— The Secretary may not authorize payments to an agricultural commodity producer under clause (i)— “(I) for subsistence expenses that exceed the lesser of— “(aa) the actual per diem expenses for subsistence incurred by the producer; or “(bb) the prevailing per diem allowance rate authorized under Federal travel regulations; or “(II) for travel expenses that exceed the prevailing mileage rate authorized under the Federal travel regulations. “(2) Intensive technical assistance.— A producer that has completed initial technical assistance under paragraph (1) shall be eligible to participate in intensive technical assistance. Such assistance shall consist of— “(A) a series of courses to further assist the producer in improving the competitiveness of the producer in producing— “(i) the agricultural commodity with respect to which the producer was certified under this chapter; or “(ii) another agricultural commodity; and “(B) assistance in developing an initial business plan based on the courses completed under subparagraph (A). “(3) Initial business plan.— “(A) Approval by secretary.— The Secretary shall approve an initial business plan developed under paragraph (2)(B) if the plan— “(i) reflects the skills gained by the producer through the courses described in paragraph (2)(A); and “(ii) demonstrates how the producer will apply those skills to the circumstances of the producer. “(B) Financial assistance for implementing initial business plan.— Upon approval of the producer’s initial business plan by the Secretary under subparagraph (A), a producer shall be entitled to an amount not to exceed $4,000 to— “(i) implement the initial business plan; or “(ii) develop a long-term business adjustment plan under paragraph (4). “(4) Long-term business adjustment plan.— “(A) In general.— A producer that has completed intensive technical assistance under paragraph (2) and whose initial business plan has been approved under paragraph (3)(A) shall be eligible for, in addition to the amount under subparagraph (C), assistance in developing a long-term business adjustment plan. “(B) Approval of long-term business adjustment plans.— The Secretary shall approve a long-term business adjustment plan developed under subparagraph (A) if the Secretary determines that the plan— “(i) includes steps reasonably calculated to materially contribute to the economic adjustment of the producer to changing market conditions; “(ii) takes into consideration the interests of the workers employed by the producer; and “(iii) demonstrates that the producer will have sufficient resources to implement the business plan. “(C) Plan implementation.— Upon approval of the producer’s long-term business adjustment plan under subparagraph (B), a producer shall be entitled to an amount not to exceed $8,000 to implement the long-term business adjustment plan. “(c) Maximum Amount of Assistance.— An agricultural commodity producer may receive not more than $12,000 under paragraphs (3) and (4) of subsection (b) in the 36-month period following certification under section 293. “(d) Limitations on Other Assistance.— An agricultural commodity producer that receives benefits under this chapter (other than initial technical assistance under subsection (b)(1)) shall not be eligible for cash benefits under chapter 2 or 3.” . (b) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by striking the item relating to section 296 and inserting the following: “Sec. 296.  Qualifying requirements and benefits for agricultural commodity producers.”. SEC. 1884. REPORT.   Section 293 of the Trade Act of 1974 (19 U.S.C. 2401b) is amended by adding at the end the following: “(d) Report by the Secretary.— Not later than January 30, 2010, and annually thereafter, the Secretary of Agriculture shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report containing the following information with respect to adjustment assistance provided under this chapter during the preceding fiscal year: “(1) A list of the agricultural commodities covered by a certification under this chapter. “(2) The States or regions in which such commodities are produced and the aggregate amount of such commodities produced in each such State or region. “(3) The total number of agricultural commodity producers, by congressional district, receiving benefits under this chapter. “(4) The total number of agricultural commodity producers, by congressional district, receiving technical assistance under this chapter.” . SEC. 1885. FRAUD AND RECOVERY OF OVERPAYMENTS.   Section 297(a)(1) of the Trade Act of 1974 (19 U.S.C. 2401f(a)(1)) is amended by inserting “or has expended funds received under this chapter for a purpose that was not approved by the Secretary,” after “entitled,”. SEC. 1886. DETERMINATION OF INCREASES OF IMPORTS FOR CERTAIN FISHERMEN.   For purposes of chapters 2 and 6 of title II of the Trade Act of 1974 (19 U.S.C. 2251 et seq.), in the case of an agricultural commodity producer that— (1) is a fisherman or aquaculture producer, and (2) is otherwise eligible for adjustment assistance under chapter 2 or 6, as the case may be, the increase in imports of articles like or directly competitive with the agricultural commodity produced by such producer may be based on imports of wild-caught seafood, farm-raised seafood, or both. SEC. 1887. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE FOR FARMERS.   Section 298(a) of the Trade Act of 1974 (19 U.S.C. 2401g(a)) is amended by striking “fiscal years 2003 through 2007” and all that follows through the end period and inserting “fiscal years 2009 and 2010, and $22,500,000 for the period beginning October 1, 2010, and ending December 31, 2010, to carry out the purposes of this chapter, including administrative costs, and salaries and expenses of employees of the Department of Agriculture.”. PART V— GENERAL PROVISIONS SEC. 1891. EFFECTIVE DATE. (a) In General.— Except as otherwise provided in this subtitle, and subsection (b) of this section, this subtitle and the amendments made by this subtitle— (1) shall take effect upon the expiration of the 90-day period beginning on the date of the enactment of this Act; and (2) Applicability. shall apply to— (A) petitions for certification filed under chapter 2, 3, or 6 of title II of the Trade Act of 1974 on or after the effective date described in paragraph (1); and (B) petitions for assistance and proposals for grants filed under chapter 4 of title II of the Trade Act of 1974 on or after such effective date. (b) Certifications Made Before Effective Date.— Notwithstanding subsection (a)— (1) a worker shall continue to receive (or be eligible to receive) trade adjustment assistance and other benefits under subchapter B of chapter 2 of title II of the Trade Act of 1974, as in effect on the day before the effective date described in subsection (a)(1), for any week for which the worker meets the eligibility requirements of such chapter 2 as in effect on the day before such effective date, if the worker— (A) is certified as eligible for trade adjustment assistance benefits under such chapter 2 pursuant to a petition filed under section 221 of the Trade Act of 1974 on or before such effective date; and (B) would otherwise be eligible to receive trade adjustment assistance benefits under such chapter as in effect on the day before such effective date; (2) a worker shall continue to receive (or be eligible to receive) benefits under section 246(a)(2) of the Trade Act of 1974, as in effect on the day before the effective date described in subsection (a)(1), for such period for which the worker meets the eligibility requirements of section 246 of that Act as in effect on the day before such effective date, if the worker— (A) is certified as eligible for benefits under such section 246 pursuant to a petition filed under section 221 of the Trade Act of 1974 on or before such effective date; and (B) would otherwise be eligible to receive benefits under such section 246(a)(2) as in effect on the day before such effective date; and (3) a firm shall continue to receive (or be eligible to receive) adjustment assistance under chapter 3 of title II of the Trade Act of 1974, as in effect on the day before the effective date described in subsection (a)(1), for such period for which the firm meets the eligibility requirements of such chapter 3 as in effect on the day before such effective date, if the firm— (A) is certified as eligible for benefits under such chapter 3 pursuant to a petition filed under section 251 of the Trade Act of 1974 on or before such effective date; and (B) would otherwise be eligible to receive benefits under such chapter 3 as in effect on the day before such effective date. SEC. 1892. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE PROGRAMS. (a) For Workers.— Section 245(a) of the Trade Act of 1974 (19 U.S.C. 2317(a)) is amended by striking “December 31, 2007” and inserting “December 31, 2010”. (b) Termination.— Section 285 of the Trade Act of 1974 (19 U.S.C. 2271 note prec.) is amended— (1) in subsection (a), by striking “December 31, 2007” each place it appears and inserting “December 31, 2010”; and (2) by amending subsection (b) to read as follows: “(b) Other Assistance.— “(1) Assistance for firms.— “(A) In general.— Except as provided in subparagraph (B), technical assistance and grants may not be provided under chapter 3 after December 31, 2010. “(B) Exception.— Notwithstanding subparagraph (A), any technical assistance or grant approved under chapter 3 on or before December 31, 2010, may be provided— “(i) to the extent funds are available pursuant to such chapter for such purpose; and “(ii) to the extent the recipient of the technical assistance or grant is otherwise eligible to receive such technical assistance or grant, as the case may be. “(2) Farmers.— “(A) In general.— Except as provided in subparagraph (B), technical assistance and financial assistance may not be provided under chapter 6 after December 31, 2010. “(B) Exception.— Notwithstanding subparagraph (A), any technical or financial assistance approved under chapter 6 on or before December 31, 2010, may be provided— “(i) to the extent funds are available pursuant to such chapter for such purpose; and “(ii) to the extent the recipient of the technical or financial assistance is otherwise eligible to receive such technical or financial assistance, as the case may be. “(3) Assistance for communities.— “(A) In general.— Except as provided in subparagraph (B), technical assistance and grants may not be provided under chapter 4 after December 31, 2010. “(B) Exception.— Notwithstanding subparagraph (A), any technical assistance or grant approved under chapter 4 on or before December 31, 2010, may be provided— “(i) to the extent funds are available pursuant to such chapter for such purpose; and “(ii) to the extent the recipient of the technical assistance or grant is otherwise eligible to receive such technical assistance or grant, as the case may be.” . SEC. 1893. TERMINATION; RELATED PROVISIONS. (a) Sunset.— (1) In general.— Subject to paragraph (2), the amendments made by this subtitle to chapters 2, 3, 4, 5, and 6 of title II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.) shall not apply on or after January 1, 2011. (2) Exception.— The amendments made by this subtitle to section 285 of the Trade Act of 1974 shall continue to apply on and after January 1, 2011, with respect to— (A) workers certified as eligible for trade adjustment assistance benefits under chapter 2 of title II of that Act pursuant to petitions filed under section 221 of that Act before January 1, 2011; (B) firms certified as eligible for technical assistance or grants under chapter 3 of title II of that Act pursuant to petitions filed under section 251 of that Act before January 1, 2011; (C) recipients approved for technical assistance or grants under chapter 4 of title II of that Act pursuant to petitions for assistance or proposals for grants (as the case may be) filed pursuant to such chapter before January 1, 2011; and (D) agricultural commodity producers certified as eligible for technical or financial assistance under chapter 6 of title II of that Act pursuant to petitions filed under section 292 of that Act before January 1, 2011. (b) Application of Prior Law.— Chapters 2, 3, 4, 5, and 6 of title II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.) shall be applied and administered beginning January 1, 2011, as if the amendments made by this subtitle (other than part VI) had never been enacted, except that in applying and administering such chapters— (1) section 245 of that Act shall be applied and administered by substituting “2011” for “2007”; (2) section 246(b) of that Act shall be applied and administered by substituting “December 31, 2011” for “the date that is 5 years” and all that follows through “State”; (3) section 256(b) of that Act shall be applied and administered by substituting “the 1-year period beginning January 1, 2011” for “each of fiscal years 2003 through 2007, and $4,000,000 for the 3-month period beginning October 1, 2007”; (4) section 298(a) of that Act shall be applied and administered by substituting “the 1-year period beginning January 1, 2011” for “each of the fiscal years” and all that follows through “October 1, 2007”; and (5) subject to subsection (a)(2), section 285 of that Act shall be applied and administered— (A) in subsection (a), by substituting “2011” for “2007” each place it appears; and (B) by applying and administering subsection (b) as if it read as follows: “(b) Other Assistance.— “(1) Assistance for firms.— “(A) In general.— Except as provided in subparagraph (B), assistance may not be provided under chapter 3 after December 31, 2011. “(B) Exception.— Notwithstanding subparagraph (A), any assistance approved under chapter 3 on or before December 31, 2011, may be provided— “(i) to the extent funds are available pursuant to such chapter for such purpose; and “(ii) to the extent the recipient of the assistance is otherwise eligible to receive such assistance. “(2) Farmers.— “(A) In general.— Except as provided in subparagraph (B), assistance may not be provided under chapter 6 after December 31, 2011. “(B) Exception.— Notwithstanding subparagraph (A), any assistance approved under chapter 6 on or before December 31, 2011, may be provided— “(i) to the extent funds are available pursuant to such chapter for such purpose; and “(ii) to the extent the recipient of the assistance is otherwise eligible to receive such assistance.” . SEC. 1894. GOVERNMENT ACCOUNTABILITY OFFICE REPORT.   Not later than September 30, 2012, the Comptroller General of the United States shall prepare and submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a comprehensive report on the operation and effectiveness of the amendments made by this subtitle to chapters 2, 3, 4, and 6 of the Trade Act of 1974. SEC. 1895. EMERGENCY DESIGNATION.   Amounts appropriated pursuant to this subtitle are designated as an emergency requirement and necessary to meet emergency needs pursuant to section 204(a) of S. Con. Res. 21 (110th Congress) and section 301(b)(2) of S. Con. Res. 70 (110th Congress), the concurrent resolutions on the budget for fiscal years 2008 and 2009. PART VI— HEALTH COVERAGE IMPROVEMENT SEC. 1899. SHORT TITLE.   This part may be cited as the “TAA Health Coverage Improvement Act of 2009”. SEC. 1899A. IMPROVEMENT OF THE AFFORDABILITY OF THE CREDIT. (a) Improvement of Affordability.— (1) In general.— Section 35(a) of the Internal Revenue Code of 1986 26 USC 35. (relating to credit for health insurance costs of eligible individuals) is amended by inserting “(80 percent in the case of eligible coverage months beginning before January 1, 2011)” after “65 percent”. (2) Conforming amendment.— Section 7527(b) of such Code 26 USC 7527. (relating to advance payment of credit for health insurance costs of eligible individuals) is amended by inserting “(80 percent in the case of eligible coverage months beginning before January 1, 2011)” after “65 percent”. (b) Effective Date.— The amendments made by this section shall apply to coverage months beginning on or after the first day of the first month beginning 60 days after the date of the enactment of this Act. SEC. 1899B. PAYMENT FOR MONTHLY PREMIUMS PAID PRIOR TO COMMENCEMENT OF ADVANCE PAYMENTS OF CREDIT. (a) Payment for Premiums Due Prior to Commencement of Advance Payments of Credit.— Section 7527 of the Internal Revenue Code of 1986 (relating to advance payment of credit for health insurance costs of eligible individuals) is amended by adding at the end the following new subsection: “(e) Payment for Premiums Due Prior to Commencement of Advance Payments.— In the case of eligible coverage months beginning before January 1, 2011— “(1) In general.— The program established under subsection (a) shall provide that the Secretary shall make 1 or more retroactive payments on behalf of a certified individual in an aggregate amount equal to 80 percent of the premiums for coverage of the taxpayer and qualifying family members under qualified health insurance for eligible coverage months (as defined in section 35(b)) occurring prior to the first month for which an advance payment is made on behalf of such individual under subsection (a). “(2) Reduction of payment for amounts received under national emergency grants.— The amount of any payment determined under paragraph (1) shall be reduced by the amount of any payment made to the taxpayer for the purchase of qualified health insurance under a national emergency grant pursuant to section 173(f) of the Workforce Investment Act of 1998 for a taxable year including the eligible coverage months described in paragraph (1).” . (b) Effective Date.— The amendments made by this section shall apply to coverage months beginning after December 31, 2008. (c) Transitional Rule.— The Secretary of the Treasury shall not be required to make any payments under section 7527(e) of the Internal Revenue Code of 1986, as added by this section, until after the date that is 6 months after the date of the enactment of this Act. SEC. 1899C. TAA RECIPIENTS NOT ENROLLED IN TRAINING PROGRAMS ELIGIBLE FOR CREDIT. (a) In General.— Paragraph (2) of section 35(c) of the Internal Revenue Code of 1986 (defining eligible TAA recipient) is amended to read as follows: “(2) Eligible taa recipient.— “(A) In general.— Except as provided in subparagraph (B), the term ‘eligible TAA recipient’ means, with respect to any month, any individual who is receiving for any day of such month a trade readjustment allowance under chapter 2 of title II of the Trade Act of 1974 or who would be eligible to receive such allowance if section 231 of such Act were applied without regard to subsection (a)(3)(B) of such section. An individual shall continue to be treated as an eligible TAA recipient during the first month that such individual would otherwise cease to be an eligible TAA recipient by reason of the preceding sentence. “(B) Special rule.— In the case of any eligible coverage month beginning after the date of the enactment of this paragraph and before January 1, 2011, the term ‘eligible TAA recipient’ means, with respect to any month, any individual who— “(i) is receiving for any day of such month a trade readjustment allowance under chapter 2 of title II of the Trade Act of 1974, “(ii) would be eligible to receive such allowance except that such individual is in a break in training provided under a training program approved under section 236 of such Act that exceeds the period specified in section 233(e) of such Act, but is within the period for receiving such allowances provided under section 233(a) of such Act, or “(iii) is receiving unemployment compensation (as defined in section 85(b)) for any day of such month and who would be eligible to receive such allowance for such month if section 231 of such Act were applied without regard to subsections (a)(3)(B) and (a)(5) thereof. An individual shall continue to be treated as an eligible TAA recipient during the first month that such individual would otherwise cease to be an eligible TAA recipient by reason of the preceding sentence.” . (b) Effective Date.— The amendment made by this section shall apply to coverage months beginning after the date of the enactment of this Act. SEC. 1899D. TAA PRE-CERTIFICATION PERIOD RULE FOR PURPOSES OF DETERMINING WHETHER THERE IS A 63-DAY LAPSE IN CREDITABLE COVERAGE. (a) IRC Amendment.— Section 9801(c)(2) of the Internal Revenue Code of 1986 26 USC 9801. (relating to not counting periods before significant breaks in creditable coverage) is amended by adding at the end the following new subparagraph: “(D) TAA-eligible individuals.— In the case of plan years beginning before January 1, 2011— “(i) TAA pre-certification period rule.— In the case of a TAA-eligible individual, the period beginning on the date the individual has a TAA-related loss of coverage and ending on the date which is 7 days after the date of the issuance by the Secretary (or by any person or entity designated by the Secretary) of a qualified health insurance costs credit eligibility certificate for such individual for purposes of section 7527 shall not be taken into account in determining the continuous period under subparagraph (A). “(ii) Definitions.— The terms ‘TAA-eligible individual’ and ‘TAA-related loss of coverage’ have the meanings given such terms in section 4980B(f)(5)(C)(iv).” . (b) ERISA Amendment.— Section 701(c)(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1181(c)(2)) is amended by adding at the end the following new subparagraph: “(C) TAA-eligible individuals.— In the case of plan years beginning before January 1, 2011— “(i) TAA pre-certification period rule.— In the case of a TAA-eligible individual, the period beginning on the date the individual has a TAA-related loss of coverage and ending on the date that is 7 days after the date of the issuance by the Secretary (or by any person or entity designated by the Secretary) of a qualified health insurance costs credit eligibility certificate for such individual for purposes of section 7527 of the Internal Revenue Code of 1986 shall not be taken into account in determining the continuous period under subparagraph (A). “(ii) Definitions.— The terms ‘TAA-eligible individual’ and ‘TAA-related loss of coverage’ have the meanings given such terms in section 605(b)(4).” . (c) PHSA Amendment.— Section 2701(c)(2) of the Public Health Service Act (42 U.S.C. 300gg(c)(2)) is amended by adding at the end the following new subparagraph: “(C) TAA-eligible individuals.— In the case of plan years beginning before January 1, 2011— “(i) TAA pre-certification period rule.— In the case of a TAA-eligible individual, the period beginning on the date the individual has a TAA-related loss of coverage and ending on the date that is 7 days after the date of the issuance by the Secretary (or by any person or entity designated by the Secretary) of a qualified health insurance costs credit eligibility certificate for such individual for purposes of section 7527 of the Internal Revenue Code of 1986 shall not be taken into account in determining the continuous period under subparagraph (A). “(ii) Definitions.— The terms ‘TAA-eligible individual’ and ‘TAA-related loss of coverage’ have the meanings given such terms in section 2205(b)(4).” . (d) Effective Date.— The amendments made by this section shall apply to plan years beginning after the date of the enactment of this Act. SEC. 1899E. CONTINUED QUALIFICATION OF FAMILY MEMBERS AFTER CERTAIN EVENTS. (a) In General.— Subsection (g) of section 35 26 USC 35. of such Code is amended by redesignating paragraph (9) as paragraph (10) and inserting after paragraph (8) the following new paragraph: “(9) Continued qualification of family members after certain events.— In the case of eligible coverage months beginning before January 1, 2011— “(A) Medicare eligibility.— In the case of any month which would be an eligible coverage month with respect to an eligible individual but for subsection (f)(2)(A), such month shall be treated as an eligible coverage month with respect to such eligible individual solely for purposes of determining the amount of the credit under this section with respect to any qualifying family members of such individual (and any advance payment of such credit under section 7527). This subparagraph shall only apply with respect to the first 24 months after such eligible individual is first entitled to the benefits described in subsection (f)(2)(A). “(B) Divorce.— In the case of the finalization of a divorce between an eligible individual and such individual’s spouse, such spouse shall be treated as an eligible individual for purposes of this section and section 7527 for a period of 24 months beginning with the date of such finalization, except that the only qualifying family members who may be taken into account with respect to such spouse are those individuals who were qualifying family members immediately before such finalization. “(C) Death.— In the case of the death of an eligible individual— “(i) any spouse of such individual (determined at the time of such death) shall be treated as an eligible individual for purposes of this section and section 7527 for a period of 24 months beginning with the date of such death, except that the only qualifying family members who may be taken into account with respect to such spouse are those individuals who were qualifying family members immediately before such death, and “(ii) any individual who was a qualifying family member of the decedent immediately before such death (or, in the case of an individual to whom paragraph (4) applies, the taxpayer to whom the deduction under section 151 is allowable) shall be treated as an eligible individual for purposes of this section and section 7527 for a period of 24 months beginning with the date of such death, except that in determining the amount of such credit only such qualifying family member may be taken into account.” . (b) Conforming Amendment.— Section 173(f) of the Workforce Investment Act of 1998 (29 U.S.C. 2918(f)) is amended by adding at the end the following: “(8) Continued qualification of family members after certain events.— In the case of eligible coverage months beginning before January 1, 2011— “(A) Medicare eligibility.— In the case of any month which would be an eligible coverage month with respect to an eligible individual but for paragraph (7)(B)(i), such month shall be treated as an eligible coverage month with respect to such eligible individual solely for purposes of determining the eligibility of qualifying family members of such individual under this subsection. Applicability. This subparagraph shall only apply with respect to the first 24 months after such eligible individual is first entitled to the benefits described in paragraph (7)(B)(i). “(B) Divorce.— In the case of the finalization of a divorce between an eligible individual and such individual’s spouse, such spouse shall be treated as an eligible individual for purposes of this subsection for a period of 24 months beginning with the date of such finalization, except that the only qualifying family members who may be taken into account with respect to such spouse are those individuals who were qualifying family members immediately before such finalization. “(C) Death.— In the case of the death of an eligible individual— “(i) any spouse of such individual (determined at the time of such death) shall be treated as an eligible individual for purposes of this subsection for a period of 24 months beginning with the date of such death, except that the only qualifying family members who may be taken into account with respect to such spouse are those individuals who were qualifying family members immediately before such death, and “(ii) any individual who was a qualifying family member of the decedent immediately before such death shall be treated as an eligible individual for purposes this subsection for a period of 24 months beginning with the date of such death, except that no qualifying family members may be taken into account with respect to such individual.” . (c) Effective Date.— The amendments made by this section shall apply to months beginning after December 31, 2009. SEC. 1899F. EXTENSION OF COBRA BENEFITS FOR CERTAIN TAA-ELIGIBLE INDIVIDUALS AND PBGC RECIPIENTS. (a) ERISA Amendments.— Section 602(2)(A) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1162(2)(A)) is amended— (1) by moving clause (v) to after clause (iv) and before the flush left sentence beginning with “In the case of a qualified beneficiary”; (2) by striking “In the case of a qualified beneficiary” and inserting the following: “(vi) Special rule for disability.— In the case of a qualified beneficiary” ; and (3) by redesignating clauses (v) and (vi), as amended by paragraphs (1) and (2), as clauses (vii) and (viii), respectively, and by inserting after clause (iv) the following new clauses: “(v) Special rule for pbgc recipients.— In the case of a qualifying event described in section 603(2) with respect to a covered employee who (as of such qualifying event) has a nonforfeitable right to a benefit any portion of which is to be paid by the Pension Benefit Guaranty Corporation under title IV, notwithstanding clause (i) or (ii), the date of the death of the covered employee, or in the case of the surviving spouse or dependent children of the covered employee, 24 months after the date of the death of the covered employee. The preceding sentence shall not require any period of coverage to extend beyond December 31, 2010. “(vi) Special rule for taa-eligible individuals.— In the case of a qualifying event described in section 603(2) with respect to a covered employee who is (as of the date that the period of coverage would, but for this clause or clause (vii), otherwise terminate under clause (i) or (ii)) a TAA-eligible individual (as defined in section 605(b)(4)(B)), the period of coverage shall not terminate by reason of clause (i) or (ii), as the case may be, before the later of the date specified in such clause or the date on which such individual ceases to be such a TAA-eligible individual. The preceding sentence shall not require any period of coverage to extend beyond December 31, 2010.” . (b) IRC Amendments.— Clause (i) of section 4980B(f)(2)(B) of the Internal Revenue Code of 1986 26 USC 4980B. is amended— (1) by striking “In the case of a qualified beneficiary” and inserting the following: “(VI) Special rule for disability.— In the case of a qualified beneficiary” , and (2) by redesignating subclauses (V) and (VI), as amended by paragraph (1), as subclauses (VII) and (VIII), respectively, and by inserting after clause (IV) the following new subclauses: “(V) Special rule for pbgc recipients.— In the case of a qualifying event described in paragraph (3)(B) with respect to a covered employee who (as of such qualifying event) has a nonforfeitable right to a benefit any portion of which is to be paid by the Pension Benefit Guaranty Corporation under title IV of the Employee Retirement Income Security Act of 1974, notwithstanding subclause (I) or (II), the date of the death of the covered employee, or in the case of the surviving spouse or dependent children of the covered employee, 24 months after the date of the death of the covered employee. The preceding sentence shall not require any period of coverage to extend beyond December 31, 2010. “(VI) Special rule for taa-eligible individuals.— In the case of a qualifying event described in paragraph (3)(B) with respect to a covered employee who is (as of the date that the period of coverage would, but for this subclause or subclause (VII), otherwise terminate under subclause (I) or (II)) a TAA-eligible individual (as defined in paragraph (5)(C)(iv)(II)), the period of coverage shall not terminate by reason of subclause (I) or (II), as the case may be, before the later of the date specified in such subclause or the date on which such individual ceases to be such a TAA-eligible individual. The preceding sentence shall not require any period of coverage to extend beyond December 31, 2010.” . (c) PHSA Amendments.— Section 2202(2)(A) of the Public Health Service Act (42 U.S.C. 300bb-2(2)(A)) is amended— (1) by striking “In the case of a qualified beneficiary” and inserting the following: “(v) Special rule for disability.— In the case of a qualified beneficiary” ; and (2) by redesignating clauses (iv) and (v), as amended by paragraph (1), as clauses (v) and (vi), respectively, and by inserting after clause (iii) the following new clause: “(iv) Special rule for taa-eligible individuals.— In the case of a qualifying event described in section 2203(2) with respect to a covered employee who is (as of the date that the period of coverage would, but for this clause or clause (v), otherwise terminate under clause (i) or (ii)) a TAA-eligible individual (as defined in section 2205(b)(4)(B)), the period of coverage shall not terminate by reason of clause (i) or (ii), as the case may be, before the later of the date specified in such clause or the date on which such individual ceases to be such a TAA-eligible individual. The preceding sentence shall not require any period of coverage to extend beyond December 31, 2010.” . (d) Effective Date.— The amendments made by this section shall apply to periods of coverage which would (without regard to the amendments made by this section) end on or after the date of the enactment of this Act. SEC. 1899G. ADDITION OF COVERAGE THROUGH VOLUNTARY EMPLOYEES’ BENEFICIARY ASSOCIATIONS. (a) In General.— Paragraph (1) of section 35(e) of the Internal Revenue Code of 1986 26 USC 35. is amended by adding at the end the following new subparagraph: “(K) In the case of eligible coverage months beginning before January 1, 2011, coverage under an employee benefit plan funded by a voluntary employees’ beneficiary association (as defined in section 501(c)(9)) established pursuant to an order of a bankruptcy court, or by agreement with an authorized representative, as provided in section 1114 of title 11, United States Code.” . (b) Effective Date.— The amendments made by this section shall apply to coverage months beginning after the date of the enactment of this Act. SEC. 1899H. NOTICE REQUIREMENTS. (a) In General.— Subsection (d) of section 7527 of the Internal Revenue Code of 1986 (relating to qualified health insurance costs credit eligibility certificate) is amended to read as follows: “(d) Qualified Health Insurance Costs Eligibility Certificate.— “(1) In general.— For purposes of this section, the term ‘qualified health insurance costs eligibility certificate’ means any written statement that an individual is an eligible individual (as defined in section 35(c)) if such statement provides such information as the Secretary may require for purposes of this section and— “(A) in the case of an eligible TAA recipient (as defined in section 35(c)(2)) or an eligible alternative TAA recipient (as defined in section 35(c)(3)), is certified by the Secretary of Labor (or by any other person or entity designated by the Secretary), or “(B) in the case of an eligible PBGC pension recipient (as defined in section 35(c)(4)), is certified by the Pension Benefit Guaranty Corporation (or by any other person or entity designated by the Secretary). “(2) Inclusion of certain information.— In the case of any statement described in paragraph (1) which is issued before January 1, 2011, such statement shall not be treated as a qualified health insurance costs credit eligibility certificate unless such statement includes— “(A) the name, address, and telephone number of the State office or offices responsible for providing the individual with assistance with enrollment in qualified health insurance (as defined in section 35(e)), “(B) a list of the coverage options that are treated as qualified health insurance (as so defined) by the State in which the individual resides, and “(C) in the case of a TAA-eligible individual (as defined in section 4980B(f)(5)(C)(iv)(II)), a statement informing the individual that the individual has 63 days from the date that is 7 days after the date of the issuance of such certificate to enroll in such insurance without a lapse in creditable coverage (as defined in section 9801(c)).” . (b) Effective Date.— The amendment made by this section shall apply to certificates issued after the date that is 6 months after the date of the enactment of this Act. SEC. 1899I. SURVEY AND REPORT ON ENHANCED HEALTH COVERAGE TAX CREDIT PROGRAM. (a) Survey.— (1) In general.— The Secretary of the Treasury shall conduct a biennial survey of eligible individuals (as defined in section 35(c) of the Internal Revenue Code of 1986) relating to the health coverage tax credit under section 35 of the Internal Revenue Code of 1986 (hereinafter in this section referred to as the “health coverage tax credit”). (2) Information obtained.— The survey conducted under subsection (a) shall obtain the following information: (A) HCTC participants.— In the case of eligible individuals receiving the health coverage tax credit (including individuals participating in the health coverage tax credit program under section 7527 of such Code, hereinafter in this section referred to as the “HCTC program”)— (i) demographic information of such individuals, including income and education levels, (ii) satisfaction of such individuals with the enrollment process in the HCTC program, (iii) satisfaction of such individuals with available health coverage options under the credit, including level of premiums, benefits, deductibles, cost-sharing requirements, and the adequacy of provider networks, and (iv) any other information that the Secretary determines is appropriate. (B) Non-HCTC participants.— In the case of eligible individuals not receiving the health coverage tax credit— (i) demographic information of each individual, including income and education levels, (ii) whether the individual was aware of the health coverage tax credit or the HCTC program, (iii) the reasons the individual has not enrolled in the HCTC program, including whether such reasons include the burden of the process of enrollment and the affordability of coverage, (iv) whether the individual has health insurance coverage, and, if so, the source of such coverage, and (v) any other information that the Secretary determines is appropriate. (3) Report.— Not later than December 31 of each year in which a survey is conducted under paragraph (1) (beginning in 2010), the Secretary of the Treasury shall report to the Committee on Finance and the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Ways and Means, the Committee on Education and Labor, and the Committee on Energy and Commerce of the House of Representatives the findings of the most recent survey conducted under paragraph (1). (b) Report.— Not later than October 1 of each year (beginning in 2010), the Secretary of the Treasury (after consultation with the Secretary of Health and Human Services, and, in the case of the information required under paragraph (7), the Secretary of Labor) shall report to the Committee on Finance and the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Ways and Means, the Committee on Education and Labor, and the Committee on Energy and Commerce of the House of Representatives the following information with respect to the most recent taxable year ending before such date: (1) In each State and nationally— (A) the total number of eligible individuals (as defined in section 35(c) of the Internal Revenue Code of 1986) and the number of eligible individuals receiving the health coverage tax credit, (B) the total number of such eligible individuals who receive an advance payment of the health coverage tax credit through the HCTC program, (C) the average length of the time period of the participation of eligible individuals in the HCTC program, and (D) the total number of participating eligible individuals in the HCTC program who are enrolled in each category of coverage as described in section 35(e)(1) of such Code, with respect to each category of eligible individuals described in section 35(c)(1) of such Code. (2) In each State and nationally, an analysis of— (A) the range of monthly health insurance premiums, for self-only coverage and for family coverage, for individuals receiving the health coverage tax credit, and (B) the average and median monthly health insurance premiums, for self-only coverage and for family coverage, for individuals receiving the health coverage tax credit, with respect to each category of coverage as described in section 35(e)(1) of such Code. (3) In each State and nationally, an analysis of the following information with respect to the health insurance coverage of individuals receiving the health coverage tax credit who are enrolled in coverage described in subparagraphs (B) through (H) of section 35(e)(1) of such Code: (A) Deductible amounts. (B) Other out-of-pocket cost-sharing amounts. (C) A description of any annual or lifetime limits on coverage or any other significant limits on coverage services, or benefits. The information required under this paragraph shall be reported with respect to each category of coverage described in such subparagraphs. (4) In each State and nationally, the gender and average age of eligible individuals (as defined in section 35(c) of such Code) who receive the health coverage tax credit, in each category of coverage described in section 35(e)(1) of such Code, with respect to each category of eligible individuals described in such section. (5) The steps taken by the Secretary of the Treasury to increase the participation rates in the HCTC program among eligible individuals, including outreach and enrollment activities. (6) The cost of administering the HCTC program by function, including the cost of subcontractors, and recommendations on ways to reduce administrative costs, including recommended statutory changes. (7) The number of States applying for and receiving national emergency grants under section 173(f) of the Workforce Investment Act of 1998 (29 U.S.C. 2918(f)), the activities funded by such grants on a State-by-State basis, and the time necessary for application approval of such grants. SEC. 1899J. AUTHORIZATION OF APPROPRIATIONS.   There is authorized to be appropriated $80,000,000 for the period of fiscal years 2009 through 2010 to implement the amendments made by, and the provisions of, sections 1899 through 1899I of this part. SEC. 1899K. EXTENSION OF NATIONAL EMERGENCY GRANTS. (a) In General.— Section 173(f) of the Workforce Investment Act of 1998 (29 U.S.C. 2918(f)), as amended by this Act, is amended— (1) by striking paragraph (1) and inserting the following new paragraph: “(1) Use of funds.— “(A) Health insurance coverage for eligible individuals in order to obtain qualified health insurance that has guaranteed issue and other consumer protections.— Funds made available to a State or entity under paragraph (4)(A) of subsection (a) may be used to provide an eligible individual described in paragraph (4)(C) and such individual’s qualifying family members with health insurance coverage for the 3-month period that immediately precedes the first eligible coverage month (as defined in section 35(b) of the Internal Revenue Code of 1986) in which such eligible individual and such individual’s qualifying family members are covered by qualified health insurance that meets the requirements described in clauses (i) through (v) of section 35(e)(2)(A) of the Internal Revenue Code of 1986 (or such longer minimum period as is necessary in order for such eligible individual and such individual’s qualifying family members to be covered by qualified health insurance that meets such requirements). “(B) Additional uses.— Funds made available to a State or entity under paragraph (4)(A) of subsection (a) may be used by the State or entity for the following: “(i) Health insurance coverage.— To assist an eligible individual and such individual’s qualifying family members with enrolling in health insurance coverage and qualified health insurance or paying premiums for such coverage or insurance. “(ii) Administrative expenses and start-up expenses to establish group health plan coverage options for qualified health insurance.— To pay the administrative expenses related to the enrollment of eligible individuals and such individuals’ qualifying family members in health insurance coverage and qualified health insurance, including— “(I) eligibility verification activities; “(II) the notification of eligible individuals of available health insurance and qualified health insurance options; “(III) processing qualified health insurance costs credit eligibility certificates provided for under section 7527 of the Internal Revenue Code of 1986; “(IV) providing assistance to eligible individuals in enrolling in health insurance coverage and qualified health insurance; “(V) the development or installation of necessary data management systems; and “(VI) any other expenses determined appropriate by the Secretary, including start-up costs and on going administrative expenses, in order for the State to treat the coverage described in subparagraphs (C) through (H) of section 35(e)(1) of the Internal Revenue Code of 1986 as qualified health insurance under that section. “(iii) Outreach.— To pay for outreach to eligible individuals to inform such individuals of available health insurance and qualified health insurance options, including outreach consisting of notice to eligible individuals of such options made available after the date of enactment of this clause and direct assistance to help potentially eligible individuals and such individual’s qualifying family members qualify and remain eligible for the credit established under section 35 of the Internal Revenue Code of 1986 and advance payment of such credit under section 7527 of such Code. “(iv) Bridge funding.— To assist potentially eligible individuals to purchase qualified health insurance coverage prior to issuance of a qualified health insurance costs credit eligibility certificate under section 7527 of the Internal Revenue Code of 1986 and commencement of advance payment, and receipt of expedited payment, under subsections (a) and (e), respectively, of that section. “(C) Rule of construction.— The inclusion of a permitted use under this paragraph shall not be construed as prohibiting a similar use of funds permitted under subsection (g).” ; and (2) by striking paragraph (2) and inserting the following new paragraph: “(2) Qualified health insurance.— For purposes of this subsection and subsection (g), the term ‘qualified health insurance’ has the meaning given that term in section 35(e) of the Internal Revenue Code of 1986.” . (b) Funding.— Section 174(c)(1) of the Workforce Investment Act of 1998 (29 U.S.C. 2919(c)(1)) is amended— (1) in the paragraph heading, by striking “Authorization and appropriation for fiscal year 2002” and inserting “Appropriations”; and (2) by striking subparagraph (A) and inserting the following new subparagraph: “(A) to carry out subsection (a)(4)(A) of section 173— “(i) $10,000,000 for fiscal year 2002; and “(ii) $150,000,000 for the period of fiscal years 2009 through 2010; and” . SEC. 1899L. GAO STUDY AND REPORT. (a) Study.— The Comptroller General of the United States shall conduct a study regarding the health insurance tax credit allowed under section 35 of the Internal Revenue Code of 1986. (b) Report.— Not later than March 1, 2010, the Comptroller General shall submit a report to Congress regarding the results of the study conducted under subsection (a). Such report shall include an analysis of— (1) the administrative costs— (A) of the Federal Government with respect to such credit and the advance payment of such credit under section 7527 of such Code, and (B) of providers of qualified health insurance with respect to providing such insurance to eligible individuals and their qualifying family members, (2) the health status and relative risk status of eligible individuals and qualifying family members covered under such insurance, (3) participation in such credit and the advance payment of such credit by eligible individuals and their qualifying family members, including the reasons why such individuals did or did not participate and the effect of the amendments made by this part on such participation, and (4) the extent to which eligible individuals and their qualifying family members— (A) obtained health insurance other than qualifying health insurance, or (B) went without health insurance coverage. (c) Access to Records.— For purposes of conducting the study required under this section, the Comptroller General and any of his duly authorized representatives shall have access to, and the right to examine and copy, all documents, records, and other recorded information— (1) within the possession or control of providers of qualified health insurance, and (2) determined by the Comptroller General (or any such representative) to be relevant to the study. The Comptroller General shall not disclose the identity of any provider of qualified health insurance or any eligible individual in making any information obtained under this section available to the public. (d) Definitions.— Any term which is defined in section 35 of the Internal Revenue Code of 1986 shall have the same meaning when used in this section.

   Effective date note
   Except as otherwise provided and subject to certain applicability provisions, amendment by Pub. L. 111–5 effective upon the expiration of the 90-day period beginning on Feb. 17, 2009, see section 1891 of Pub. L. 111–5, set out as a note under section 2271 of this title. Section 1893 of Pub. L. 111–5, formerly set out as a Termination Date of 2009 Amendment note preceding section 2271 of this title, which provided that, except as otherwise provided, amendment by Pub. L. 111–5 not applicable on or after Feb. 13, 2011, and that this section be applied and administered beginning Feb. 13, 2011, as if amendment by Pub. L. 111–5 had never been enacted, was repealed by Pub. L. 112–40, title II, § 201(a), Oct. 21, 2011, 125 Stat. 403, effective Oct. 21, 2011. See Codification note above.

6. 2009

   American Recovery and Reinvestment Act of 2009

   Pub. L. 111–5 div. B title I · 123 Stat. 115

   1. Substituted · 19 U.S.C. § 2273(d)

      Pub. L. 111–5, §§ 1803(3), 1893, temporarily substituted “, that total or partial separations from such firm are no longer attributable to the conditions specified in section 2272 of this title, the Secretary shall” for “or subdivision of the firm, that total or partial separations from such firm or subdivision are no longer attributable to the conditions specified in section 2272 of this title, he shall” . See Codification note above and Effective and Termination Dates of 2009 Amendment note below

   2. Substituted · 19 U.S.C. § 2273(d)

      Pub. L. 111–5, §§ 1803(3), 1893, temporarily substituted “and on the website of the Department of Labor, together with the Secretary’s reasons” for “together with his reasons” . See Codification note above and Effective and Termination Dates of 2009 Amendment note below

   Source evidence

   Code amendment note
   Subsec. (d). Pub. L. 111–5, §§ 1803(3), 1893, temporarily substituted “, that total or partial separations from such firm are no longer attributable to the conditions specified in section 2272 of this title, the Secretary shall” for “or subdivision of the firm, that total or partial separations from such firm or subdivision are no longer attributable to the conditions specified in section 2272 of this title, he shall” and “and on the website of the Department of Labor, together with the Secretary’s reasons” for “together with his reasons”. See Codification note above and Effective and Termination Dates of 2009 Amendment note below.

   Enacted provision · exact public law
   TITLE I— TAX PROVISIONS SEC. 1000. SHORT TITLE, ETC. (a) Short Title.— This 26 USC 1 note. title may be cited as the “American Recovery and Reinvestment Tax Act of 2009”. (b) Reference.— Except 26 USC 1 et seq. as otherwise expressly provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. (c) Table of Contents.— The table of contents for this title is as follows: TITLE I— TAX PROVISIONS Sec. 1000.  Short title, etc. Subtitle A— Tax Relief for Individuals and Families PART I— General Tax Relief Sec. 1001.  Making work pay credit. Sec. 1002.  Temporary increase in earned income tax credit. Sec. 1003.  Temporary increase of refundable portion of child credit. Sec. 1004.  American opportunity tax credit. Sec. 1005.  Computer technology and equipment allowed as a qualified higher education expense for section 529 accounts in 2009 and 2010. Sec. 1006.  Extension of and increase in first-time homebuyer credit; waiver of requirement to repay. Sec. 1007.  Suspension of tax on portion of unemployment compensation. Sec. 1008.  Additional deduction for State sales tax and excise tax on the purchase of certain motor vehicles. PART II— Alternative Minimum Tax Relief Sec. 1011.  Extension of alternative minimum tax relief for nonrefundable personal credits. Sec. 1012.  Extension of increased alternative minimum tax exemption amount. Subtitle B— Energy Incentives PART I— Renewable Energy Incentives Sec. 1101.  Extension of credit for electricity produced from certain renewable resources. Sec. 1102.  Election of investment credit in lieu of production credit. Sec. 1103.  Repeal of certain limitations on credit for renewable energy property. Sec. 1104.  Coordination with renewable energy grants. PART II— Increased Allocations of New Clean Renewable Energy Bonds and Qualified Energy Conservation Bonds Sec. 1111.  Increased limitation on issuance of new clean renewable energy bonds. Sec. 1112.  Increased limitation on issuance of qualified energy conservation bonds. PART III— Energy Conservation Incentives Sec. 1121.  Extension and modification of credit for nonbusiness energy property. Sec. 1122.  Modification of credit for residential energy efficient property. Sec. 1123.  Temporary increase in credit for alternative fuel vehicle refueling property. PART IV— Modification of Credit for Carbon Dioxide Sequestration Sec. 1131.  Application of monitoring requirements to carbon dioxide used as a tertiary injectant. PART V— Plug-in Electric Drive Motor Vehicles Sec. 1141.  Credit for new qualified plug-in electric drive motor vehicles. Sec. 1142.  Credit for certain plug-in electric vehicles. Sec. 1143.  Conversion kits. Sec. 1144.  Treatment of alternative motor vehicle credit as a personal credit allowed against AMT. PART VI— Parity for Transportation Fringe Benefits Sec. 1151.  Increased exclusion amount for commuter transit benefits and transit passes. Subtitle C— Tax Incentives for Business PART I— Temporary Investment Incentives Sec. 1201.  Special allowance for certain property acquired during 2009. Sec. 1202.  Temporary increase in limitations on expensing of certain depreciable business assets. PART II— Small Business Provisions Sec. 1211.  5-year carryback of operating losses of small businesses. Sec. 1212.  Decreased required estimated tax payments in 2009 for certain small businesses. PART III— Incentives for New Jobs Sec. 1221.  Incentives to hire unemployed veterans and disconnected youth. PART IV— Rules Relating to Debt Instruments Sec. 1231.  Deferral and ratable inclusion of income arising from business indebtedness discharged by the reacquisition of a debt instrument. Sec. 1232.  Modifications of rules for original issue discount on certain high yield obligations. PART V— Qualified Small Business Stock Sec. 1241.  Special rules applicable to qualified small business stock for 2009 and 2010. PART VI— S Corporations Sec. 1251.  Temporary reduction in recognition period for built-in gains tax. PART VII— Rules Relating to Ownership Changes Sec. 1261.  Clarification of regulations related to limitations on certain built-in losses following an ownership change. Sec. 1262.  Treatment of certain ownership changes for purposes of limitations on net operating loss carryforwards and certain built-in losses. Subtitle D— Manufacturing Recovery Provisions Sec. 1301.  Temporary expansion of availability of industrial development bonds to facilities manufacturing intangible property. Sec. 1302.  Credit for investment in advanced energy facilities. Subtitle E— Economic Recovery Tools Sec. 1401.  Recovery zone bonds. Sec. 1402.  Tribal economic development bonds. Sec. 1403.  Increase in new markets tax credit. Sec. 1404.  Coordination of low-income housing credit and low-income housing grants. Subtitle F— Infrastructure Financing Tools PART I— Improved Marketability for Tax-Exempt Bonds Sec. 1501.  De minimis safe harbor exception for tax-exempt interest expense of financial institutions. Sec. 1502.  Modification of small issuer exception to tax-exempt interest expense allocation rules for financial institutions. Sec. 1503.  Temporary modification of alternative minimum tax limitations on tax-exempt bonds. Sec. 1504.  Modification to high speed intercity rail facility bonds. PART II— Delay in Application of Withholding Tax on Government Contractors Sec. 1511.  Delay in application of withholding tax on government contractors. PART III— Tax Credit Bonds for Schools Sec. 1521.  Qualified school construction bonds. Sec. 1522.  Extension and expansion of qualified zone academy bonds. PART IV— Build America Bonds Sec. 1531.  Build America bonds. PART V— Regulated Investment Companies Allowed to Pass-Thru Tax Credit Bond Credits Sec. 1541.  Regulated investment companies allowed to pass-thru tax credit bond credits. Subtitle G— Other Provisions Sec. 1601.  Application of certain labor standards to projects financed with certain tax-favored bonds. Sec. 1602.  Grants to States for low-income housing projects in lieu of low-income housing credit allocations for 2009. Sec. 1603.  Grants for specified energy property in lieu of tax credits. Sec. 1604.  Increase in public debt limit. Subtitle H— Prohibition on Collection of Certain Payments Made Under the Continued Dumping and Subsidy Offset Act of 2000 Sec. 1701.  Prohibition on collection of certain payments made under the Continued Dumping and Subsidy Offset Act of 2000. Subtitle I— Trade Adjustment Assistance Sec. 1800.  Short title. PART I— Trade Adjustment Assistance for Workers subpart a— trade adjustment assistance for service sector workers Sec. 1801.  Extension of trade adjustment assistance to service sector and public agency workers; shifts in production. Sec. 1802.  Separate basis for certification. Sec. 1803.  Determinations by Secretary of Labor. Sec. 1804.  Monitoring and reporting relating to service sector. subpart b— industry notifications following certain affirmative determinations Sec. 1811.  Notifications following certain affirmative determinations. Sec. 1812.  Notification to Secretary of Commerce. subpart c— program benefits Sec. 1821.  Qualifying Requirements for Workers. Sec. 1822.  Weekly amounts. Sec. 1823.  Limitations on trade readjustment allowances; allowances for extended training and breaks in training. Sec. 1824.  Special rules for calculation of eligibility period. Sec. 1825.  Application of State laws and regulations on good cause for waiver of time limits or late filing of claims. Sec. 1826.  Employment and case management services. Sec. 1827.  Administrative expenses and employment and case management services. Sec. 1828.  Training funding. Sec. 1829.  Prerequisite education; approved training programs. Sec. 1830.  Pre-layoff and part-time training. Sec. 1831.  On-the-job training. Sec. 1832.  Eligibility for unemployment insurance and program benefits while in training. Sec. 1833.  Job search and relocation allowances. subpart d— reemployment trade adjustment assistance program Sec. 1841.  Reemployment trade adjustment assistance program. subpart e— other matters Sec. 1851.  Office of Trade Adjustment Assistance. Sec. 1852.  Accountability of State agencies; collection and publication of program data; agreements with States. Sec. 1853.  Verification of eligibility for program benefits. Sec. 1854.  Collection of data and reports; information to workers. Sec. 1855.  Fraud and recovery of overpayments. Sec. 1856.  Sense of Congress on application of trade adjustment assistance. Sec. 1857.  Consultations in promulgation of regulations. Sec. 1858.  Technical corrections. PART II— Trade Adjustment Assistance for Firms Sec. 1861.  Expansion to service sector firms. Sec. 1862.  Modification of requirements for certification. Sec. 1863.  Basis for determinations. Sec. 1864.  Oversight and administration; authorization of appropriations. Sec. 1865.  Increased penalties for false statements. Sec. 1866.  Annual report on trade adjustment assistance for firms. Sec. 1867.  Technical corrections. PART III— Trade Adjustment Assistance for Communities Sec. 1871.  Purpose. Sec. 1872.  Trade adjustment assistance for communities. Sec. 1873.  Conforming amendments. PART IV— Trade Adjustment Assistance for Farmers Sec. 1881.  Definitions. Sec. 1882.  Eligibility. Sec. 1883.  Benefits. Sec. 1884.  Report. Sec. 1885.  Fraud and recovery of overpayments. Sec. 1886.  Determination of increases of imports for certain fishermen. Sec. 1887.  Extension of trade adjustment assistance for farmers. PART V— General Provisions Sec. 1891.  Effective date. Sec. 1892.  Extension of trade adjustment assistance programs. Sec. 1893.  Termination; related provisions. Sec. 1894.  Government Accountability Office report. Sec. 1895.  Emergency designation. PART VI— Health Coverage Improvement Sec. 1899.  Short title. Sec. 1899A.  Improvement of the affordability of the credit. Sec. 1899B.  Payment for monthly premiums paid prior to commencement of advance payments of credit. Sec. 1899C.  TAA recipients not enrolled in training programs eligible for credit. Sec. 1899D.  TAA pre-certification period rule for purposes of determining whether there is a 63-day lapse in creditable coverage. Sec. 1899E.  Continued qualification of family members after certain events. Sec. 1899F.  Extension of COBRA benefits for certain TAA-eligible individuals and PBGC recipients. Sec. 1899G.  Addition of coverage through voluntary employees’ beneficiary associations. Sec. 1899H.  Notice requirements. Sec. 1899I.  Survey and report on enhanced health coverage tax credit program. Sec. 1899J.  Authorization of appropriations. Sec. 1899K.  Extension of national emergency grants. Sec. 1899L.  GAO study and report. Subtitle A— Tax Relief for Individuals and Families PART I— GENERAL TAX RELIEF SEC. 1001. MAKING WORK PAY CREDIT. (a) In General.— Subpart C of part IV of subchapter A of chapter 1 is amended by inserting after section 36 the following new section: “SEC. 36A. MAKING WORK PAY CREDIT. “(a) Allowance of Credit.— In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the lesser of— “(1) 6.2 percent of earned income of the taxpayer, or “(2) $400 ($800 in the case of a joint return). “(b) Limitation Based on Modified Adjusted Gross Income.— “(1) In general.— The amount allowable as a credit under subsection (a) (determined without regard to this paragraph and subsection (c)) for the taxable year shall be reduced (but not below zero) by 2 percent of so much of the taxpayer’s modified adjusted gross income as exceeds $75,000 ($150,000 in the case of a joint return). “(2) Modified adjusted gross income.— For purposes of subparagraph (A), the term ‘modified adjusted gross income’ means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933. “(c) Reduction for Certain Other Payments.— The credit allowed under subsection (a) for any taxable year shall be reduced by the amount of any payments received by the taxpayer during such taxable year under section 2201, and any credit allowed to the taxpayer under section 2202, of the American Recovery and Reinvestment Tax Act of 2009. “(d) Definitions and Special Rules.— For purposes of this section— “(1) Eligible individual.— “(A) In general.— The term ‘eligible individual’ means any individual other than— “(i) any nonresident alien individual, “(ii) any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, and “(iii) an estate or trust. “(B) Identification number requirement.— Such term shall not include any individual who does not include on the return of tax for the taxable year— “(i) such individual’s social security account number, and “(ii) in the case of a joint return, the social security account number of one of the taxpayers on such return. For purposes of the preceding sentence, the social security account number shall not include a TIN issued by the Internal Revenue Service. “(2) Earned income.— The term ‘earned income’ has the meaning given such term by section 32(c)(2), except that such term shall not include net earnings from self-employment which are not taken into account in computing taxable income. For purposes of the preceding sentence, any amount excluded from gross income by reason of section 112 shall be treated as earned income which is taken into account in computing taxable income for the taxable year. “(e) Termination.— This section shall not apply to taxable years beginning after December 31, 2010.” . (b) Treatment of Possessions.— (1) Payments to possessions.— (A) Mirror code possession.— The Effective dates. Secretary of the Treasury shall pay to each possession of the United States with a mirror code tax system amounts equal to the loss to that possession by reason of the amendments made by this section with respect to taxable years beginning in 2009 and 2010. Such amounts shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession. (B) Other possessions.— The Effective dates. Secretary of the Treasury shall pay to each possession of the United States which does not have a mirror code tax system amounts estimated by the Secretary of the Treasury as being equal to the aggregate benefits that would have been provided to residents of such possession by reason of the amendments made by this section for taxable years beginning in 2009 and 2010 if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply with respect to any possession of the United States unless such possession has a plan, which has been approved by the Secretary of the Treasury, under which such possession will promptly distribute such payments to the residents of such possession. (2) Coordination with credit allowed against united states income taxes.— No credit shall be allowed against United States income taxes for any taxable year under section 36A of the Internal Revenue Code of 1986 (as added by this section) to any person— (A) to whom a credit is allowed against taxes imposed by the possession by reason of the amendments made by this section for such taxable year, or (B) who is eligible for a payment under a plan described in paragraph (1)(B) with respect to such taxable year. (3) Definitions and special rules.— (A) Possession of the united states.— For purposes of this subsection, the term “possession of the United States” includes the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands. (B) Mirror code tax system.— For purposes of this subsection, the term “mirror code tax system” means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States. (C) Treatment of payments.— For purposes of section 1324(b)(2) of title 31, United States Code, the payments under this subsection shall be treated in the same manner as a refund due from the credit allowed under section 36A of the Internal Revenue Code of 1986 (as added by this section). (c) Refunds Disregarded in the Administration of Federal Programs and Federally Assisted Programs.— Any credit or refund allowed or made to any individual by reason of section 36A of the Internal Revenue Code of 1986 (as added by this section) or by reason of subsection (b) of this section shall not be taken into account as income and shall not be taken into account as resources for the month of receipt and the following 2 months, for purposes of determining the eligibility of such individual or any other individual for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds. (d) Authority Relating to Clerical Errors.— Section 6213(g)(2) is 26 USC 6213. amended by striking “and” at the end of subparagraph (L)(ii), by striking the period at the end of subparagraph (M) and inserting “, and”, and by adding at the end the following new subparagraph: “(N) an omission of the reduction required under section 36A(c) with respect to the credit allowed under section 36A or an omission of the correct social security account number required under section 36A(d)(1)(B).” . (e) Conforming Amendments.— (1) Section 6211(b)(4)(A) is amended by inserting “36A,” after “36,”. (2) Section 1324(b)(2) of title 31, United States Code, is amended by inserting “36A,” after “36,”. (3) The table of sections for subpart C of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 36 the following new item: “Sec. 36A.  Making work pay credit.”. (f) Effective Date.— This section, and the amendments made by this section, shall apply to taxable years beginning after December 31, 2008. SEC. 1002. TEMPORARY INCREASE IN EARNED INCOME TAX CREDIT. (a) In General.— Subsection (b) of section 32 26 USC 32. is amended by adding at the end the following new paragraph: “(3) Special rules for 2009 and 2010.— In the case of any taxable year beginning in 2009 or 2010— “(A) Increased credit percentage for 3 or more qualifying children.— In the case of a taxpayer with 3 or more qualifying children, the credit percentage is 45 percent. “(B) Reduction of marriage penalty.— “(i) In general.— The dollar amount in effect under paragraph (2)(B) shall be $5,000. “(ii) Inflation adjustment.— In the case of any taxable year beginning in 2010, the $5,000 amount in clause (i) 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 2008’ for ‘calendar year 1992’ in subparagraph (B) thereof. “(iii) Rounding.— Subparagraph Applicability. (A) of subsection (j)(2) shall apply after taking into account any increase under clause (ii).” . (b) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 2008. SEC. 1003. TEMPORARY INCREASE OF REFUNDABLE PORTION OF CHILD CREDIT. (a) In General.— Paragraph (4) of section 24(d) 26 USC 24. is amended to read as follows: “(4) Special rule for 2009 and 2010.— Notwithstanding paragraph (3), in the case of any taxable year beginning in 2009 or 2010, the dollar amount in effect for such taxable year under paragraph (1)(B)(i) shall be $3,000.” . (b) Effective Date.— The 26 USC 24 note. amendments made by this section shall apply to taxable years beginning after December 31, 2008. SEC. 1004. AMERICAN OPPORTUNITY TAX CREDIT. (a) In General.— Section 25A (relating to Hope scholarship credit) is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) the following new subsection: “(i) American Opportunity Tax Credit.— In the case of any taxable year beginning in 2009 or 2010— “(1) Increase in credit.— The Hope Scholarship Credit shall be an amount equal to the sum of— “(A) 100 percent of so much of the qualified tuition and related expenses paid by the taxpayer during the taxable year (for education furnished to the eligible student during any academic period beginning in such taxable year) as does not exceed $2,000, plus “(B) 25 percent of such expenses so paid as exceeds $2,000 but does not exceed $4,000. “(2) Credit allowed for first 4 years of post-secondary education.— Subparagraphs (A) and Applicability. (C) of subsection (b)(2) shall be applied by substituting ‘4’ for ‘2’. “(3) Qualified tuition and related expenses to include required course materials.— Subsection (f)(1)(A) shall be applied by substituting ‘tuition, fees, and course materials’ for ‘tuition and fees’. “(4) Increase in agi limits for hope scholarship credit.— In lieu of applying subsection (d) with respect to the Hope Scholarship Credit, such credit (determined without regard to this paragraph) shall be reduced (but not below zero) by the amount which bears the same ratio to such credit (as so determined) as— “(A) the excess of— “(i) the taxpayer’s modified adjusted gross income (as defined in subsection (d)(3)) for such taxable year, over “(ii) $80,000 ($160,000 in the case of a joint return), bears to “(B) $10,000 ($20,000 in the case of a joint return). “(5) Credit allowed against alternative minimum tax.— In the case of a taxable year to which section 26(a)(2) does not apply, so much of the credit allowed under subsection (a) as is attributable to the Hope Scholarship Credit shall not exceed the excess of— “(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over “(B) the sum of the credits allowable under this subpart (other than this subsection and sections 23, 25D, and 30D) and section 27 for the taxable year. Any reference in this section or section 24, 25, 26, 25B, 904, or 1400C to a credit allowable under this subsection shall be treated as a reference to so much of the credit allowable under subsection (a) as is attributable to the Hope Scholarship Credit. “(6) Portion of credit made refundable.— 40 percent of so much of the credit allowed under subsection (a) as is attributable to the Hope Scholarship Credit (determined after application of paragraph (4) and without regard to this paragraph and section 26(a)(2) or paragraph (5), as the case may be) shall be treated as a credit allowable under subpart C (and not allowed under subsection (a)). The preceding sentence shall not apply to any taxpayer for any taxable year if such taxpayer is a child to whom subsection (g) of section 1 applies for such taxable year. “(7) Coordination with midwestern disaster area benefits.— In the case of a taxpayer with respect to whom section 702(a)(1)(B) of the Heartland Disaster Tax Relief Act of 2008 applies for any taxable year, such taxpayer may elect to waive the application of this subsection to such taxpayer for such taxable year.” . (b) Conforming Amendments.— (1) Section 26 USC 24. 24(b)(3)(B) is amended by inserting “25A(i),” after “23,”. (2) Section 25(e)(1)(C)(ii) is amended by inserting “25A(i),” after “24,”. (3) Section 26(a)(1) is amended by inserting “25A(i),” after “24,”. (4) Section 25B(g)(2) is amended by inserting “25A(i),” after “23,”. (5) Section 904(i) is amended by inserting “25A(i),” after “24,”. (6) Section 1400C(d)(2) is amended by inserting “25A(i),” after “24,”. (7) Section 6211(b)(4)(A) is amended by inserting “25A by reason of subsection (i)(6) thereof,” after “24(d),”. (8) Section 1324(b)(2) of title 31, United States Code, is amended by inserting “25A,” before “35”. (c) Treatment of Possessions.— (1) Payments to possessions.— (A) Mirror code possession.— The Secretary of the Treasury shall pay to each possession of the United States with a mirror code tax system amounts equal to the loss to that possession by reason of the application of section 25A(i)(6) of the Internal Revenue Code of 1986 (as added by this section) with respect to taxable years beginning in 2009 and 2010. Such amounts shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession. (B) Other possessions.— The Secretary of the Treasury shall pay to each possession of the United States which does not have a mirror code tax system amounts estimated by the Secretary of the Treasury as being equal to the aggregate benefits that would have been provided to residents of such possession by reason of the application of section 25A(i)(6) of such Code (as so added) for taxable years beginning in 2009 and 2010 if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply with respect to any possession of the United States unless such possession has a plan, which has been approved by the Secretary of the Treasury, under which such possession will promptly distribute such payments to the residents of such possession. (2) Coordination with credit allowed against united states income taxes.— Section 25A(i)(6) of such Code (as added by this section) shall not apply to a bona fide resident of any possession of the United States. (3) Definitions and special rules.— (A) Possession of the united states.— For purposes of this subsection, the term “possession of the United States” includes the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands. (B) Mirror code tax system.— For purposes of this subsection, the term “mirror code tax system” means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States. (C) Treatment of payments.— For purposes of section 1324(b)(2) of title 31, United States Code, the payments under this subsection shall be treated in the same manner as a refund due from the credit allowed under section 25A of the Internal Revenue Code of 1986 by reason of subsection (i)(6) of such section (as added by this section). (d) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 2008. (e) Application of EGTRRA Sunset.— The amendment made by subsection (b)(1) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provision of such Act to which such amendment relates. (f) Treasury Studies Regarding Education Incentives.— (1) Study regarding coordination with non-tax student financial assistance.— The Secretary of the Treasury and the Secretary of Education, or their delegates, shall— (A) study how to coordinate the credit allowed under section 25A of the Internal Revenue Code of 1986 with the Federal Pell Grant program under section 401 of the Higher Education Act of 1965 to maximize their effectiveness at promoting college affordability, and (B) examine ways to expedite the delivery of the tax credit. (2) Study regarding inclusion of community service requirements.— The Secretary of the Treasury and the Secretary of Education, or their delegates, shall study the feasibility of requiring including community service as a condition of taking their tuition and related expenses into account under section 25A of the Internal Revenue Code of 1986. (3) Report.— Not later than 1 year after the date of the enactment of this Act, the Secretary of the Treasury, or the Secretary’s delegate, shall report to Congress on the results of the studies conducted under this paragraph. SEC. 1005. COMPUTER TECHNOLOGY AND EQUIPMENT ALLOWED AS A QUALIFIED HIGHER EDUCATION EXPENSE FOR SECTION 529 ACCOUNTS IN 2009 AND 2010. (a) In General.— Section 529(e)(3)(A) 26 USC 529. is amended by striking “and” at the end of clause (i), by striking the period at the end of clause (ii), and by adding at the end the following: “(iii) expenses paid or incurred in 2009 or 2010 for the purchase of any computer technology or equipment (as defined in section 170(e)(6)(F)(i)) or Internet access and related services, if such technology, equipment, or services are to be used by the beneficiary and the beneficiary’s family during any of the years the beneficiary is enrolled at an eligible educational institution. Clause (iii) shall not include expenses for computer software designed for sports, games, or hobbies unless the software is predominantly educational in nature.” . (b) Effective Date.— The amendments made by this section shall apply to expenses paid or incurred after December 31, 2008. SEC. 1006. EXTENSION OF AND INCREASE IN FIRST-TIME HOMEBUYER CREDIT; WAIVER OF REQUIREMENT TO REPAY. (a) Extension.— (1) In general.— Section 36(h) is amended by striking “July 1, 2009” and inserting “December 1, 2009”. (2) Conforming amendment.— Section 36(g) is amended by striking “July 1, 2009” and inserting “December 1, 2009”. (b) Increase.— (1) In general.— Section 36(b) is amended by striking “$7,500” each place it appears and inserting “$8,000”. (2) Conforming amendment.— Section 36(b)(1)(B) is amended by striking “$3,750” and inserting “$4,000”. (c) Waiver of Recapture.— (1) In general.— Paragraph (4) of section 36(f) is amended by adding at the end the following new subparagraph: “(D) Waiver of recapture for purchases in 2009.— In the case Time period. of any credit allowed with respect to the purchase of a principal residence after December 31, 2008, and before December 1, 2009— “(i) paragraph (1) shall not apply, and “(ii) paragraph (2) shall apply only if the disposition or cessation described in paragraph (2) with respect to such residence occurs during the 36-month period beginning on the date of the purchase of such residence by the taxpayer.” . (2) Conforming amendment.— Subsection (g) of section 36 is amended by striking “subsection (c)” and inserting “subsections (c) and (f)(4)(D)”. (d) Coordination With First-Time Homebuyer Credit for District of Columbia.— (1) In general.— Subsection (e) of section 1400C is amended by adding at the end the following new paragraph: “(4) Coordination with national first-time homebuyers credit.— No credit shall Time period. be allowed under this section to any taxpayer with respect to the purchase of a residence after December 31, 2008, and before December 1, 2009, if a credit under section 36 is allowable to such taxpayer (or the taxpayer’s spouse) with respect to such purchase.” . (2) Conforming amendment.— Section 36(d) 26 USC 36. is amended by striking paragraph (1). (e) Removal of Prohibition on Financing by Mortgage Revenue Bonds.— Section 36(d), as amended by subsection (c)(2), is amended by striking paragraph (2) and by redesignating paragraphs (3) and (4) as paragraphs (1) and (2), respectively. (f) Effective Date.— The amendments made by this section shall apply to residences purchased after December 31, 2008. SEC. 1007. SUSPENSION OF TAX ON PORTION OF UNEMPLOYMENT COMPENSATION. (a) In General.— Section 85 of the Internal Revenue Code of 1986 (relating to unemployment compensation) is amended by adding at the end the following new subsection: “(c) Special Rule for 2009.— In the case of any taxable year beginning in 2009, gross income shall not include so much of the unemployment compensation received by an individual as does not exceed $2,400.” . (b) Effective Date.— The amendment made by this section shall apply to taxable years beginning after December 31, 2008. SEC. 1008. ADDITIONAL DEDUCTION FOR STATE SALES TAX AND EXCISE TAX ON THE PURCHASE OF CERTAIN MOTOR VEHICLES. (a) In General.— Subsection (a) of section 164 is amended by inserting after paragraph (5) the following new paragraph: “(6) Qualified motor vehicle taxes.” . (b) Qualified Motor Vehicle Taxes.— Subsection (b) of section 164 is amended by adding at the end the following new paragraph: “(6) Qualified motor vehicle taxes.— “(A) In general.— For purposes of this section, the term ‘qualified motor vehicle taxes’ means any State or local sales or excise tax imposed on the purchase of a qualified motor vehicle. “(B) Limitation based on vehicle price.— The amount of any State or local sales or excise tax imposed on the purchase of a qualified motor vehicle taken into account under subparagraph (A) shall not exceed the portion of such tax attributable to so much of the purchase price as does not exceed $49,500. “(C) Income limitation.— The amount otherwise taken into account under subparagraph (A) (after the application of subparagraph (B)) for any taxable year shall be reduced (but not below zero) by the amount which bears the same ratio to the amount which is so treated as— “(i) the excess (if any) of— “(I) the taxpayer’s modified adjusted gross income for such taxable year, over “(II) $125,000 ($250,000 in the case of a joint return), bears to “(ii) $10,000. For purposes of the preceding sentence, the term ‘modified adjusted gross income’ means the adjusted gross income of the taxpayer for the taxable year (determined without regard to sections 911, 931, and 933). “(D) Qualified motor vehicle.— For purposes of this paragraph— “(i) In general.— The term ‘qualified motor vehicle’ means— “(I) a passenger automobile or light truck which is treated as a motor vehicle for purposes of title II of the Clean Air Act, the gross vehicle weight rating of which is not more than 8,500 pounds, and the original use of which commences with the taxpayer, “(II) a motorcycle the gross vehicle weight rating of which is not more than 8,500 pounds and the original use of which commences with the taxpayer, and “(III) a motor home the original use of which commences with the taxpayer. “(ii) Other terms.— The terms ‘motorcycle’ and ‘motor home’ have the meanings given such terms under section 571.3 of title 49, Code of Federal Regulations (as in effect on the date of the enactment of this paragraph). “(E) Qualified motor vehicle taxes not included in cost of acquired property.— The last sentence of subsection (a) shall not apply to any qualified motor vehicle taxes. “(F) Coordination with general sales tax.— This paragraph shall not apply in the case of a taxpayer who makes an election under paragraph (5) for the taxable year. “(G) Termination.— This paragraph shall not apply to purchases after December 31, 2009.” . (c) Deduction Allowed to Nonitemizers.— (1) In general.— Paragraph (1) of section 63(c) 26 USC 63. is amended by striking “and” at the end of subparagraph (C), by striking the period at the end of subparagraph (D) and inserting “, and”, and by adding at the end the following new subparagraph: “(E) the motor vehicle sales tax deduction.” . (2) Definition.— Section 63(c) is amended by adding at the end the following new paragraph: “(9) Motor vehicle sales tax deduction.— For purposes of paragraph (1), the term ‘motor vehicle sales tax deduction’ means the amount allowable as a deduction under section 164(a)(6). Such term shall not include any amount taken into account under section 62(a).” . (d) Treatment of Deduction Under Alternative Minimum Tax.— The last sentence of section 56(b)(1)(E) is amended by striking “section 63(c)(1)(D)” and inserting “subparagraphs (D) and (E) of section 63(c)(1)”. (e) Effective Date.— The amendments made by this section shall apply to purchases on or after the date of the enactment of this Act in taxable years ending after such date. PART II— ALTERNATIVE MINIMUM TAX RELIEF SEC. 1011. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR NONREFUNDABLE PERSONAL CREDITS. (a) In General.— Paragraph (2) of section 26(a) 26 USC 26. (relating to special rule for taxable years 2000 through 2008) is amended— (1) by striking “or 2008” and inserting “2008, or 2009”, and (2) by striking “2008” in the heading thereof and inserting “2009”. (b) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 2008. SEC. 1012. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX EXEMPTION AMOUNT. (a) In General.— Paragraph (1) of section 55(d) (relating to exemption amount) is amended— (1) by striking “($69,950 in the case of taxable years beginning in 2008)” in subparagraph (A) and inserting “($70,950 in the case of taxable years beginning in 2009)”, and (2) by striking “($46,200 in the case of taxable years beginning in 2008)” in subparagraph (B) and inserting “($46,700 in the case of taxable years beginning in 2009)”. (b) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 2008. Subtitle B— Energy Incentives PART I— RENEWABLE ENERGY INCENTIVES SEC. 1101. EXTENSION OF CREDIT FOR ELECTRICITY PRODUCED FROM CERTAIN RENEWABLE RESOURCES. (a) In General.— Subsection (d) of section 45 is amended— (1) by striking “2010” in paragraph (1) and inserting “2013”, (2) by striking “2011” each place it appears in paragraphs (2), (3), (4), (6), (7) and (9) and inserting “2014”, and (3) by striking “2012” in paragraph (11)(B) and inserting “2014”. (b) Technical Amendment.— Paragraph (5) of section 45(d) is amended by striking “and before” and all that follows and inserting “ and before October 3, 2008.”. (c) Effective Date.— (1) In general.— The amendments made by subsection (a) shall apply to property placed in service after the date of the enactment of this Act. (2) Technical amendment.— The amendment made by subsection (b) shall take effect as if included in section 102 of the Energy Improvement and Extension Act of 2008. SEC. 1102. ELECTION OF INVESTMENT CREDIT IN LIEU OF PRODUCTION CREDIT. (a) In General.— Subsection (a) of section 48 is amended by adding at the end the following new paragraph: “(5) Election to treat qualified facilities as energy property.— “(A) In general.— In the case of any qualified property which is part of a qualified investment credit facility— “(i) such property shall be treated as energy property for purposes of this section, and “(ii) the energy percentage with respect to such property shall be 30 percent. “(B) Denial of production credit.— No credit shall be allowed under section 45 for any taxable year with respect to any qualified investment credit facility. “(C) Qualified investment credit facility.— For purposes of this paragraph, the term ‘qualified investment credit facility’ means any of the following facilities if no credit has been allowed under section 45 with respect to such facility and the taxpayer makes an irrevocable election to have this paragraph apply to such facility: “(i) Wind facilities.— Any qualified facility (within the meaning of section 45) described in paragraph (1) of section 45(d) if such facility is placed in service in 2009, 2010, 2011, or 2012. “(ii) Other facilities.— Any qualified facility (within the meaning of section 45) described in paragraph (2), (3), (4), (6), (7), (9), or (11) of section 45(d) if such facility is placed in service in 2009, 2010, 2011, 2012, or 2013. “(D) Qualified property.— For purposes of this paragraph, the term ‘qualified property’ means property— “(i) which is— “(I) tangible personal property, or “(II) other tangible property (not including a building or its structural components), but only if such property is used as an integral part of the qualified investment credit facility, and “(ii) with respect to which depreciation (or amortization in lieu of depreciation) is allowable.” . (b) Effective Date.— The amendments made by this section shall apply to facilities placed in service after December 31, 2008. SEC. 1103. REPEAL OF CERTAIN LIMITATIONS ON CREDIT FOR RENEWABLE ENERGY PROPERTY. (a) Repeal of Limitation on Credit for Qualified Small Wind Energy Property.— Paragraph (4) of section 48(c) 26 USC 48. is amended by striking subparagraph (B) and by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C). (b) Repeal of Limitation on Property Financed by Subsidized Energy Financing.— (1) In general.— Section 48(a)(4) is amended by adding at the end the following new subparagraph: “(D) Termination.— This paragraph shall not apply to periods after December 31, 2008, under rules similar to the rules of section 48(m) (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).” . (2) Conforming amendments.— (A) Section 25C(e)(1) is amended by striking “(8), and (9)” and inserting “and (8)”. (B) Section 25D(e) is amended by striking paragraph (9). (C) Section 48A(b)(2) 26 USC 48A. is amended by inserting “(without regard to subparagraph (D) thereof)” after “section 48(a)(4)”. (D) Section 48B(b)(2) is amended by inserting “(without regard to subparagraph (D) thereof)” after “section 48(a)(4)”. (c) Effective Date.— (1) In general.— Except as provided in paragraph (2), the amendment made by this section shall apply to periods after December 31, 2008, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990). (2) Conforming amendments.— The amendments made by subparagraphs (A) and (B) of subsection (b)(2) shall apply to taxable years beginning after December 31, 2008. SEC. 1104. COORDINATION WITH RENEWABLE ENERGY GRANTS.   Section 48 is amended by adding at the end the following new subsection: “(d) Coordination With Department of Treasury Grants.— In the case of any property with respect to which the Secretary makes a grant under section 1603 of the American Recovery and Reinvestment Tax Act of 2009— “(1) Denial of production and investment credits.— No credit shall be determined under this section or section 45 with respect to such property for the taxable year in which such grant is made or any subsequent taxable year. “(2) Recapture of credits for progress expenditures made before grant.— If a credit was determined under this section with respect to such property for any taxable year ending before such grant is made— “(A) the tax imposed under subtitle A on the taxpayer for the taxable year in which such grant is made shall be increased by so much of such credit as was allowed under section 38, “(B) the general business carryforwards under section 39 shall be adjusted so as to recapture the portion of such credit which was not so allowed, and “(C) the amount of such grant shall be determined without regard to any reduction in the basis of such property by reason of such credit. “(3) Treatment of grants.— Any such grant shall— “(A) not be includible in the gross income of the taxpayer, but “(B) shall be taken into account in determining the basis of the property to which such grant relates, except that the basis of such property shall be reduced under section 50(c) in the same manner as a credit allowed under subsection (a).” . PART II— INCREASED ALLOCATIONS OF NEW CLEAN RENEWABLE ENERGY BONDS AND QUALIFIED ENERGY CONSERVATION BONDS SEC. 1111. INCREASED LIMITATION ON ISSUANCE OF NEW CLEAN RENEWABLE ENERGY BONDS.   Subsection (c) of section 54C 26 USC 54C. is amended by adding at the end the following new paragraph: “(4) Additional limitation.— The national new clean renewable energy bond limitation shall be increased by $1,600,000,000. Such increase shall be allocated by the Secretary consistent with the rules of paragraphs (2) and (3).” . SEC. 1112. INCREASED LIMITATION ON ISSUANCE OF QUALIFIED ENERGY CONSERVATION BONDS. (a) In General.— Section 54D(d) is amended by striking “$800,000,000” and inserting “$3,200,000,000”. (b) Clarification With Respect to Green Community Programs.— (1) In general.— Clause (ii) of section 54D(f)(1)(A) is amended by inserting “(including the use of loans, grants, or other repayment mechanisms to implement such programs)” after “green community programs”. (2) Special rules for bonds for implementing green community programs.— Subsection (e) of section 54D is amended by adding at the end the following new paragraph: “(4) Special rules for bonds to implement green community programs.— In the case of any bond issued for the purpose of providing loans, grants, or other repayment mechanisms for capital expenditures to implement green community programs, such bond shall not be treated as a private activity bond for purposes of paragraph (3).” . PART III— ENERGY CONSERVATION INCENTIVES SEC. 1121. EXTENSION AND MODIFICATION OF CREDIT FOR NONBUSINESS ENERGY PROPERTY. (a) In General.— Section 25C is amended by striking subsections (a) and (b) and inserting the following new subsections: “(a) Allowance of Credit.— In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 30 percent of the sum of— “(1) the amount paid or incurred by the taxpayer during such taxable year for qualified energy efficiency improvements, and “(2) the amount of the residential energy property expenditures paid or incurred by the taxpayer during such taxable year. “(b) Limitation.— The aggregate amount of the credits allowed under this section for taxable years beginning in 2009 and 2010 with respect to any taxpayer shall not exceed $1,500.” . (b) Modifications of Standards for Energy-Efficient Building Property.— (1) Electric heat pumps.— Subparagraph (B) of section 25C(d)(3) 26 USC 25C. is amended to read as follows: “(B) an electric heat pump which achieves the highest efficiency tier established by the Consortium for Energy Efficiency, as in effect on January 1, 2009.” . (2) Central air conditioners.— Subparagraph (C) of section 25C(d)(3) is amended by striking “2006” and inserting “2009”. (3) Water heaters.— Subparagraph (D) of section 25C(d)(3) is amended to read as follows: “(D) a natural gas, propane, or oil water heater which has either an energy factor of at least 0.82 or a thermal efficiency of at least 90 percent.” . (4) Wood stoves.— Subparagraph (E) of section 25C(d)(3) is amended by inserting “, as measured using a lower heating value” after “75 percent”. (c) Modifications of Standards for Oil Furnaces and Hot Water Boilers.— (1) In general.— Paragraph (4) of section 25C(d) is amended to read as follows: “(4) Qualified natural gas, propane, and oil furnaces and hot water boilers.— “(A) Qualified natural gas furnace.— The term ‘qualified natural gas furnace’ means any natural gas furnace which achieves an annual fuel utilization efficiency rate of not less than 95. “(B) Qualified natural gas hot water boiler.— The term ‘qualified natural gas hot water boiler’ means any natural gas hot water boiler which achieves an annual fuel utilization efficiency rate of not less than 90. “(C) Qualified propane furnace.— The term ‘qualified propane furnace’ means any propane furnace which achieves an annual fuel utilization efficiency rate of not less than 95. “(D) Qualified propane hot water boiler.— The term ‘qualified propane hot water boiler’ means any propane hot water boiler which achieves an annual fuel utilization efficiency rate of not less than 90. “(E) Qualified oil furnaces.— The term ‘qualified oil furnace’ means any oil furnace which achieves an annual fuel utilization efficiency rate of not less than 90. “(F) Qualified oil hot water boiler.— The term ‘qualified oil hot water boiler’ means any oil hot water boiler which achieves an annual fuel utilization efficiency rate of not less than 90.” . (2) Conforming amendment.— Clause (ii) of section 25C(d)(2)(A) is amended to read as follows: “(ii) any qualified natural gas furnace, qualified propane furnace, qualified oil furnace, qualified natural gas hot water boiler, qualified propane hot water boiler, or qualified oil hot water boiler, or” . (d) Modifications of Standards for Qualified Energy Efficiency Improvements.— (1) Qualifications for exterior windows, doors, and skylights.— Subsection (c) of section 25C is amended by adding at the end the following new paragraph: “(4) Qualifications for exterior windows, doors, and skylights.— Such term shall not include any component described in subparagraph (B) or (C) of paragraph (2) unless such component is equal to or below a U factor of 0.30 and SHGC of 0.30.” . (2) Additional qualification for insulation.— Subparagraph (A) of section 25C(c)(2) 26 USC 25C. is amended by inserting “and meets the prescriptive criteria for such material or system established by the 2009 International Energy Conservation Code, as such Code (including supplements) is in effect on the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009” after “such dwelling unit”. (e) Extension.— Section 25C(g)(2) is amended by striking “December 31, 2009” and inserting “December 31, 2010”. (f) Effective Dates.— (1) In general.— Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 2008. (2) Efficiency standards.— The amendments made by paragraphs (1), (2), and (3) of subsection (b) and subsections (c) and (d) shall apply to property placed in service after the date of the enactment of this Act. SEC. 1122. MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY. (a) Removal of Credit Limitation for Property Placed in Service.— (1) In general.— Paragraph (1) of section 25D(b) is amended to read as follows: “(1) Maximum credit for fuel cells.— In the case of any qualified fuel cell property expenditure, the credit allowed under subsection (a) (determined without regard to subsection (c)) for any taxable year shall not exceed $500 with respect to each half kilowatt of capacity of the qualified fuel cell property (as defined in section 48(c)(1)) to which such expenditure relates.” . (2) Conforming amendment.— Paragraph (4) of section 25D(e) is amended— (A) by striking all that precedes subparagraph (B) and inserting the following: “(4) Fuel cell expenditure limitations in case of joint occupancy.— In the case of any dwelling unit with respect to which qualified fuel cell property expenditures are made and which is jointly occupied and used during any calendar year as a residence by two or more individuals, the following rules shall apply: “(A) Maximum expenditures for fuel cells.— The maximum amount of such expenditures which may be taken into account under subsection (a) by all such individuals with respect to such dwelling unit during such calendar year shall be $1,667 in the case of each half kilowatt of capacity of qualified fuel cell property (as defined in section 48(c)(1)) with respect to which such expenditures relate.” , and (B) by striking subparagraph (C). (b) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 2008. SEC. 1123. TEMPORARY INCREASE IN CREDIT FOR ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY. (a) In General.— Section 30C(e) 26 USC 30C. is amended by adding at the end the following new paragraph: “(6) Special rule for property placed in service during 2009 and 2010.— In the case of property placed in service in taxable years beginning after December 31, 2008, and before January 1, 2011— “(A) in the case of any such property which does not relate to hydrogen— “(i) subsection (a) shall be applied by substituting ‘50 percent’ for ‘30 percent’, “(ii) subsection (b)(1) shall be applied by substituting ‘$50,000’ for ‘$30,000’, and “(iii) subsection (b)(2) shall be applied by substituting ‘$2,000’ for ‘$1,000’, and “(B) in the case of any such property which relates to hydrogen, subsection (b)(1) shall be applied by substituting ‘$200,000’ for ‘$30,000’.” . (b) Effective Date.— The amendment made by this section shall apply to taxable years beginning after December 31, 2008. PART IV— MODIFICATION OF CREDIT FOR CARBON DIOXIDE SEQUESTRATION SEC. 1131. APPLICATION OF MONITORING REQUIREMENTS TO CARBON DIOXIDE USED AS A TERTIARY INJECTANT. (a) In General.— Section 45Q(a)(2) is amended by striking “and” at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting “, and”, and by adding at the end the following new subparagraph: “(C) disposed of by the taxpayer in secure geological storage.” . (b) Conforming Amendments.— (1) Section 45Q(d)(2) is amended— (A) by striking “subsection (a)(1)(B)” and inserting “paragraph (1)(B) or (2)(C) of subsection (a)”, (B) by striking “and unminable coal seems” and inserting “, oil and gas reservoirs, and unminable coal seams”, and (C) by inserting “the Secretary of Energy, and the Secretary of the Interior,” after “Environmental Protection Agency”. (2) Section 45Q(a)(1)(B) is amended by inserting “and not used by the taxpayer as described in paragraph (2)(B)” after “storage”. (3) Section 45Q(e) is amended by striking “captured and disposed of or used as a tertiary injectant” and inserting “taken into account in accordance with subsection (a)”. (c) Effective Date.— The amendments made by this section shall apply to carbon dioxide captured after the date of the enactment of this Act. PART V— PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES SEC. 1141. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES. (a) In General.— Section 30D 26 USC 30D. is amended to read as follows: “SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES. “(a) Allowance of Credit.— There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the credit amounts determined under subsection (b) with respect to each new qualified plug-in electric drive motor vehicle placed in service by the taxpayer during the taxable year. “(b) Per Vehicle Dollar Limitation.— “(1) In general.— The amount determined under this subsection with respect to any new qualified plug-in electric drive motor vehicle is the sum of the amounts determined under paragraphs (2) and (3) with respect to such vehicle. “(2) Base amount.— The amount determined under this paragraph is $2,500. “(3) Battery capacity.— In the case of a vehicle which draws propulsion energy from a battery with not less than 5 kilowatt hours of capacity, the amount determined under this paragraph is $417, plus $417 for each kilowatt hour of capacity in excess of 5 kilowatt hours. The amount determined under this paragraph shall not exceed $5,000. “(c) Application With Other Credits.— “(1) Business credit treated as part of general business credit.— So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to property of a character subject to an allowance for depreciation shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)). “(2) Personal credit.— “(A) In general.— For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year. “(B) Limitation based on amount of tax.— In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall not exceed the excess of— “(i) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over “(ii) the sum of the credits allowable under subpart A (other than this section and sections 23 and 25D) and section 27 for the taxable year. “(d) New Qualified Plug-in Electric Drive Motor Vehicle.— For purposes of this section— “(1) In general.— The term ‘new qualified plug-in electric drive motor vehicle’ means a motor vehicle— “(A) the original use of which commences with the taxpayer, “(B) which is acquired for use or lease by the taxpayer and not for resale, “(C) which is made by a manufacturer, “(D) which is treated as a motor vehicle for purposes of title II of the Clean Air Act, “(E) which has a gross vehicle weight rating of less than 14,000 pounds, and “(F) which is propelled to a significant extent by an electric motor which draws electricity from a battery which— “(i) has a capacity of not less than 4 kilowatt hours, and “(ii) is capable of being recharged from an external source of electricity. “(2) Motor vehicle.— The term ‘motor vehicle’ means any vehicle which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails) and which has at least 4 wheels. “(3) Manufacturer.— The term ‘manufacturer’ has the meaning given such term in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act (42 U.S.C. 7521 et seq.). “(4) Battery capacity.— The term ‘capacity’ means, with respect to any battery, the quantity of electricity which the battery is capable of storing, expressed in kilowatt hours, as measured from a 100 percent state of charge to a 0 percent state of charge. “(e) Limitation on Number of New Qualified Plug-in Electric Drive Motor Vehicles Eligible for Credit.— “(1) In general.— In the case of a new qualified plug-in electric drive motor vehicle sold during the phaseout period, only the applicable percentage of the credit otherwise allowable under subsection (a) shall be allowed. “(2) Phaseout period.— For purposes of this subsection, the phaseout period is the period beginning with the second calendar quarter following the calendar quarter which includes the first date on which the number of new qualified plug-in electric drive motor vehicles manufactured by the manufacturer of the vehicle referred to in paragraph (1) sold for use in the United States after December 31, 2009, is at least 200,000. “(3) Applicable percentage.— For purposes of paragraph (1), the applicable percentage is— “(A) 50 percent for the first 2 calendar quarters of the phaseout period, “(B) 25 percent for the 3d and 4th calendar quarters of the phaseout period, and “(C) 0 percent for each calendar quarter thereafter. “(4) Controlled groups.— Rules similar to the rules of section 30B(f)(4) shall apply for purposes of this subsection. “(f) Special Rules.— “(1) Basis reduction.— For purposes of this subtitle, the basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit so allowed. “(2) No double benefit.— The amount of any deduction or other credit allowable under this chapter for a new qualified plug-in electric drive motor vehicle shall be reduced by the amount of credit allowed under subsection (a) for such vehicle. “(3) Property used by tax-exempt entity.— In the case of a vehicle the use of which is described in paragraph (3) or (4) of section 50(b) and which is not subject to a lease, the person who sold such vehicle to the person or entity using such vehicle shall be treated as the taxpayer that placed such vehicle in service, but only if such person clearly discloses to such person or entity in a document the amount of any credit allowable under subsection (a) with respect to such vehicle (determined without regard to subsection (c)). “(4) Property used outside united states not qualified.— No credit shall be allowable under subsection (a) with respect to any property referred to in section 50(b)(1). “(5) Recapture.— The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit. “(6) Election not to take credit.— No credit shall be allowed under subsection (a) for any vehicle if the taxpayer elects to not have this section apply to such vehicle. “(7) Interaction with air quality and motor vehicle safety standards.— A motor vehicle shall not be considered eligible for a credit under this section unless such vehicle is in compliance with— “(A) the applicable provisions of the Clean Air Act for the applicable make and model year of the vehicle (or applicable air quality provisions of State law in the case of a State which has adopted such provision under a waiver under section 209(b) of the Clean Air Act), and “(B) the motor vehicle safety provisions of sections 30101 through 30169 of title 49, United States Code.” . (b) Conforming Amendments.— (1) Section 30B(d)(3)(D) 26 USC 30B. is amended by striking “subsection (d) thereof” and inserting “subsection (c) thereof”. (2) Section 38(b)(35) is amended by striking “30D(d)(1)” and inserting “30D(c)(1)”. (3) Section 1016(a)(25) is amended by striking “section 30D(e)(4)” and inserting “section 30D(f)(1)”. (4) Section 6501(m) is amended by striking “section 30D(e)(9)” and inserting “section 30D(e)(4)”. (c) Effective Date.— The amendments made by this section shall apply to vehicles acquired after December 31, 2009. SEC. 1142. CREDIT FOR CERTAIN PLUG-IN ELECTRIC VEHICLES. (a) In General.— Section 30 is amended to read as follows: “SEC. 30. CERTAIN PLUG-IN ELECTRIC VEHICLES. “(a) Allowance of Credit.— There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 10 percent of the cost of any qualified plug-in electric vehicle placed in service by the taxpayer during the taxable year. “(b) Per Vehicle Dollar Limitation.— The amount of the credit allowed under subsection (a) with respect to any vehicle shall not exceed $2,500. “(c) Application With Other Credits.— “(1) Business credit treated as part of general business credit.— So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to property of a character subject to an allowance for depreciation shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)). “(2) Personal credit.— “(A) In general.— For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year. “(B) Limitation based on amount of tax.— In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall not exceed the excess of— “(i) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over “(ii) the sum of the credits allowable under subpart A (other than this section and sections 23, 25D, and 30D) and section 27 for the taxable year. “(d) Qualified Plug-in Electric Vehicle.— For purposes of this section— “(1) In general.— The term ‘qualified plug-in electric vehicle’ means a specified vehicle— “(A) the original use of which commences with the taxpayer, “(B) which is acquired for use or lease by the taxpayer and not for resale, “(C) which is made by a manufacturer, “(D) which is manufactured primarily for use on public streets, roads, and highways, “(E) which has a gross vehicle weight rating of less than 14,000 pounds, and “(F) which is propelled to a significant extent by an electric motor which draws electricity from a battery which— “(i) has a capacity of not less than 4 kilowatt hours (2.5 kilowatt hours in the case of a vehicle with 2 or 3 wheels), and “(ii) is capable of being recharged from an external source of electricity. “(2) Specified vehicle.— The term ‘specified vehicle’ means any vehicle which— “(A) is a low speed vehicle within the meaning of section 571.3 of title 49, Code of Federal Regulations (as in effect on the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009), or “(B) has 2 or 3 wheels. “(3) Manufacturer.— The term ‘manufacturer’ has the meaning given such term in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act (42 U.S.C. 7521 et seq.). “(4) Battery capacity.— The term ‘capacity’ means, with respect to any battery, the quantity of electricity which the battery is capable of storing, expressed in kilowatt hours, as measured from a 100 percent state of charge to a 0 percent state of charge. “(e) Special Rules.— “(1) Basis reduction.— For purposes of this subtitle, the basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit so allowed. “(2) No double benefit.— The amount of any deduction or other credit allowable under this chapter for a new qualified plug-in electric drive motor vehicle shall be reduced by the amount of credit allowable under subsection (a) for such vehicle. “(3) Property used by tax-exempt entity.— In the case of a vehicle the use of which is described in paragraph (3) or (4) of section 50(b) and which is not subject to a lease, the person who sold such vehicle to the person or entity using such vehicle shall be treated as the taxpayer that placed such vehicle in service, but only if such person clearly discloses to such person or entity in a document the amount of any credit allowable under subsection (a) with respect to such vehicle (determined without regard to subsection (c)). “(4) Property used outside united states not qualified.— No credit shall be allowable under subsection (a) with respect to any property referred to in section 50(b)(1). “(5) Recapture.— The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit. “(6) Election not to take credit.— No credit shall be allowed under subsection (a) for any vehicle if the taxpayer elects to not have this section apply to such vehicle. “(f) Termination.— This section shall not apply to any vehicle acquired after December 31, 2011.” . (b) Conforming Amendments.— (1) (A) Section 24(b)(3)(B) 26 USC 24. is amended by inserting “30,” after “25D,”. (B) Section 25(e)(1)(C)(ii) is amended by inserting “30,” after “25D,”. (C) Section 25B(g)(2) is amended by inserting “30,” after “25D,”. (D) Section 26(a)(1) is amended by inserting “30,” after “25D,”. (E) Section 904(i) is amended by striking “and 25B” and inserting “25B, 30, and 30D”. (F) Section 1400C(d)(2) is amended by striking “and 25D” and inserting “25D, and 30”. (2) Paragraph (1) of section 30B(h) is amended to read as follows: “(1) Motor vehicle.— The term ‘motor vehicle’ means any vehicle which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails) and which has at least 4 wheels.” . (3) Section 30C(d)(2)(A) 26 USC 30C. is amended by striking “, 30,”. (4) (A) Section 53(d)(1)(B) is amended by striking clause (iii) and redesignating clause (iv) as clause (iii). (B) Subclause (II) of section 53(d)(1)(B)(iii), as so redesignated, is amended by striking “increased in the manner provided in clause (iii)”. (5) Section 55(c)(3) is amended by striking “30(b)(3),”. (6) Section 1016(a)(25) is amended by striking “section 30(d)(1)” and inserting “section 30(e)(1)”. (7) Section 6501(m) is amended by striking “section 30(d)(4)” and inserting “section 30(e)(6)”. (8) The item in the table of sections for subpart B of part IV of subchapter A of chapter 1 is amended to read as follows: “Sec. 30.  Certain plug-in electric vehicles.”. (c) Effective Date.— The amendments made by this section shall apply to vehicles acquired after the date of the enactment of this Act. (d) Transitional Rule.— In the Time period. 26 USC 30 note. case of a vehicle acquired after the date of the enactment of this Act and before January 1, 2010, no credit shall be allowed under section 30 of the Internal Revenue Code of 1986, as added by this section, if credit is allowable under section 30D of such Code with respect to such vehicle. (e) Application of EGTRRA Sunset.— The amendment made by subsection (b)(1)(A) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provision of such Act to which such amendment relates. SEC. 1143. CONVERSION KITS. (a) In General.— Section 30B (relating to alternative motor vehicle credit) is amended by redesignating subsections (i) and (j) as subsections (j) and (k), respectively, and by inserting after subsection (h) the following new subsection: “(i) Plug-in Conversion Credit.— “(1) In general.— For purposes of subsection (a), the plug-in conversion credit determined under this subsection with respect to any motor vehicle which is converted to a qualified plug-in electric drive motor vehicle is 10 percent of so much of the cost of the converting such vehicle as does not exceed $40,000. “(2) Qualified plug-in electric drive motor vehicle.— For purposes of this subsection, the term ‘qualified plug-in electric drive motor vehicle’ means any new qualified plug-in electric drive motor vehicle (as defined in section 30D, determined without regard to whether such vehicle is made by a manufacturer or whether the original use of such vehicle commences with the taxpayer). “(3) Credit allowed in addition to other credits.— The credit allowed under this subsection shall be allowed with respect to a motor vehicle notwithstanding whether a credit has been allowed with respect to such motor vehicle under this section (other than this subsection) in any preceding taxable year. “(4) Termination.— This subsection shall not apply to conversions made after December 31, 2011.” . (b) Credit Treated as Part of Alternative Motor Vehicle Credit.— Section 30B(a) 26 USC 30B. is amended by striking “and” at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting “, and”, and by adding at the end the following new paragraph: “(5) the plug-in conversion credit determined under subsection (i).” . (c) No Recapture for Vehicles Converted to Qualified Plug-in Electric Drive Motor Vehicles.— Paragraph (8) of section 30B(h) is amended by adding at the end the following: “, except that no benefit shall be recaptured if such property ceases to be eligible for such credit by reason of conversion to a qualified plug-in electric drive motor vehicle.”. (d) Effective Date.— The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act. SEC. 1144. TREATMENT OF ALTERNATIVE MOTOR VEHICLE CREDIT AS A PERSONAL CREDIT ALLOWED AGAINST AMT. (a) In General.— Paragraph (2) of section 30B(g) is amended to read as follows: “(2) Personal credit.— “(A) In general.— For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year. “(B) Limitation based on amount of tax.— In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall not exceed the excess of— “(i) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over “(ii) the sum of the credits allowable under subpart A (other than this section and sections 23, 25D, 30, and 30D) and section 27 for the taxable year.” . (b) Conforming Amendments.— (1) (A) Section 24(b)(3)(B), as amended by this Act, is amended by inserting “30B,” after “30,”. (B) Section 25(e)(1)(C)(ii), as amended by this Act, is amended by inserting “30B,” after “30,”. (C) Section 25B(g)(2), as amended by this Act, is amended by inserting “30B,” after “30,”. (D) Section 26(a)(1), as amended by this Act, is amended by inserting “30B,” after “30,”. (E) Section 904(i), as amended by this Act, is amended by inserting “30B,” after “30”. (F) Section 1400C(d)(2), as amended by this Act, is amended by striking “and 30” and inserting “30, and 30B”. (2) Section 30C(d)(2)(A), as amended by this Act, is amended by striking “sections 27 and 30B” and inserting “section 27”. (3) Section 55(c)(3) is amended by striking “30B(g)(2),”. (c) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 2008. (d) Application of EGTRRA Sunset.— The amendment made by subsection (b)(1)(A) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provision of such Act to which such amendment relates. PART VI— PARITY FOR TRANSPORTATION FRINGE BENEFITS SEC. 1151. INCREASED EXCLUSION AMOUNT FOR COMMUTER TRANSIT BENEFITS AND TRANSIT PASSES. (a) In General.— Paragraph (2) of section 132(f) 26 USC 132. is amended by adding at the end the following flush sentence: “In Applicability. the case of any month beginning on or after the date of the enactment of this sentence and before January 1, 2011, subparagraph (A) shall be applied as if the dollar amount therein were the same as the dollar amount in effect for such month under subparagraph (B).” . (b) Effective Date.— The amendment made by this section shall apply to months beginning on or after the date of the enactment of this section. Subtitle C— Tax Incentives for Business PART I— TEMPORARY INVESTMENT INCENTIVES SEC. 1201. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY ACQUIRED DURING 2009. (a) Extension of Special Allowance.— (1) In general.— Paragraph (2) of section 168(k) is amended— (A) by striking “January 1, 2010” and inserting “January 1, 2011”, and (B) by striking “January 1, 2009” each place it appears and inserting “January 1, 2010”. (2) Conforming amendments.— (A) The heading for subsection (k) of section 168 is amended by striking “January 1, 2009” and inserting “January 1, 2010”. (B) The heading for clause (ii) of section 168(k)(2)(B) is amended by striking “pre-january 1, 2009” and inserting “pre-january 1, 2010”. (C) Subparagraph (B) of section 168(l)(5) is amended by striking “January 1, 2009” and inserting “January 1, 2010”. (D) Subparagraph (C) of section 168(n)(2) is amended by striking “January 1, 2009” and inserting “January 1, 2010”. (E) Subparagraph (B) of section 1400N(d)(3) is amended by striking “January 1, 2009” and inserting “January 1, 2010”. (3) Technical amendments.— (A) Subparagraph (D) of section 168(k)(4) is amended— (i) by striking “and” at the end of clause (i), (ii) by redesignating clause (ii) as clause (iii), and (iii) by inserting after clause (i) the following new clause: “(ii) ‘April 1, 2008’ shall be substituted for ‘January 1, 2008’ in subparagraph (A)(iii)(I) thereof, and” . (B) Subparagraph (A) of section 6211(b)(4) 26 USC 6211. is amended by inserting “168(k)(4),” after “53(e),”. (b) Extension of Election to Accelerate the Amt and Research Credits in Lieu of Bonus Depreciation.— (1) In general.— Section 168(k)(4) (relating to election to accelerate the AMT and research credits in lieu of bonus depreciation) is amended— (A) by striking “2009” and inserting “2010”in subparagraph (D)(iii) (as redesignated by subsection (a)(3)), and (B) by adding at the end the following new subparagraph: “(H) Special rules for extension property.— “(i) Taxpayers previously electing acceleration.— In the case of a taxpayer who made the election under subparagraph (A) for its first taxable year ending after March 31, 2008— “(I) the taxpayer may elect not to have this paragraph apply to extension property, but “(II) if the taxpayer does not make the election under subclause (I), in applying this paragraph to the taxpayer a separate bonus depreciation amount, maximum amount, and maximum increase amount shall be computed and applied to eligible qualified property which is extension property and to eligible qualified property which is not extension property. “(ii) Taxpayers not previously electing acceleration.— In the case of a taxpayer who did not make the election under subparagraph (A) for its first taxable year ending after March 31, 2008— “(I) the taxpayer may elect to have this paragraph apply to its first taxable year ending after December 31, 2008, and each subsequent taxable year, and “(II) if the taxpayer makes the election under subclause (I), this paragraph shall only apply to eligible qualified property which is extension property. “(iii) Extension property.— For purposes of this subparagraph, the term ‘extension property’ means property which is eligible qualified property solely by reason of the extension of the application of the special allowance under paragraph (1) pursuant to the amendments made by section 1201(a) of the American Recovery and Reinvestment Tax Act of 2009 (and the application of such extension to this paragraph pursuant to the amendment made by section 1201(b)(1) of such Act).” . (2) Technical amendment.— Section 6211(b)(4)(A) is amended by inserting “168(k)(4),” after “53(e),”. (c) Effective Dates.— (1) In general.— Except as provided in paragraph (2), the amendments made by this section shall apply to property placed in service after December 31, 2008, in taxable years ending after such date. (2) Technical amendments.— The amendments made by subsections (a)(3) and (b)(2) shall apply to taxable years ending after March 31, 2008. SEC. 1202. TEMPORARY INCREASE IN LIMITATIONS ON EXPENSING OF CERTAIN DEPRECIABLE BUSINESS ASSETS. (a) In General.— Paragraph (7) of section 179(b) 26 USC 179. is amended— (1) by striking “2008” and inserting “2008, or 2009”, and (2) by striking “2008” in the heading thereof and inserting “2008, and 2009”. (b) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 2008. PART II— SMALL BUSINESS PROVISIONS SEC. 1211. 5-YEAR CARRYBACK OF OPERATING LOSSES OF SMALL BUSINESSES. (a) In General.— Subparagraph (H) of section 172(b)(1) is amended to read as follows: “(H) Carryback for 2008 net operating losses of small businesses.— “(i) In general.— If an eligible small business elects the application of this subparagraph with respect to an applicable 2008 net operating loss— “(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 “(III) subparagraph (F) shall not apply. “(ii) Applicable 2008 net operating loss.— For purposes of this subparagraph, the term ‘applicable 2008 net operating loss’ means— “(I) the taxpayer’s net operating loss for any taxable year ending in 2008, or “(II) if the taxpayer elects to have this subclause apply in lieu of subclause (I), the taxpayer’s net operating loss for any taxable year beginning in 2008. “(iii) Election.— 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 taxpayer’s return for the taxable year of the net operating loss. Any such election, once made, shall be irrevocable. Any election under this subparagraph may be made only with respect to 1 taxable year. “(iv) 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) Conforming Amendment.— Section 172 26 USC 172. is amended by striking subsection (k) and by redesignating subsection (l) as subsection (k). (c) Anti-Abuse 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. (d) Effective Date.— (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. (2) Transitional rule.— In the case of a net operating loss for a taxable year ending before the date of the enactment of this Act— (A) any election made under section 172(b)(3) of the Internal Revenue Code of 1986 with respect to such loss may (notwithstanding such section) be revoked before the applicable date, (B) any election made under section 172(b)(1)(H) of such Code with respect to such loss shall (notwithstanding such section) be treated as timely made if made before the applicable date, and (C) any application under section 6411(a) of such Code with respect to such loss shall be treated as timely filed if filed before the applicable date. For Definition. purposes of this paragraph, the term “applicable date” means the date which is 60 days after the date of the enactment of this Act. SEC. 1212. DECREASED REQUIRED ESTIMATED TAX PAYMENTS IN 2009 FOR CERTAIN SMALL BUSINESSES.   Paragraph (1) of section 6654(d) is amended by adding at the end the following new subparagraph: “(D) Special rule for 2009.— “(i) In general.— Notwithstanding subparagraph (C), in the case of any taxable year beginning in 2009, clause (ii) of subparagraph (B) shall be applied to any qualified individual by substituting ‘90 percent’ for ‘100 percent’. “(ii) Qualified individual.— For purposes of this subparagraph, the term ‘qualified individual’ means any individual if— “(I) the adjusted gross income shown on the return of such individual for the preceding taxable year is less than $500,000, and “(II) such individual certifies that more than 50 percent of the gross income shown on the return of such individual for the preceding taxable year was income from a small business. A certification under subclause (II) shall be in such form and manner and filed at such time as the Secretary may by regulations prescribe. “(iii) Income from a small business.— For purposes of clause (ii), income from a small business means, with respect to any individual, income from a trade or business the average number of employees of which was less than 500 employees for the calendar year ending with or within the preceding taxable year of the individual. “(iv) Separate returns.— In the case of a married individual (within the meaning of section 7703) who files a separate return for the taxable year for which the amount of the installment is being determined, clause (ii)(I) shall be applied by substituting ‘$250,000’ for ‘$500,000’. “(v) Estates and trusts.— In the case of an estate or trust, adjusted gross income shall be determined as provided in section 67(e).” . PART III— INCENTIVES FOR NEW JOBS SEC. 1221. INCENTIVES TO HIRE UNEMPLOYED VETERANS AND DISCONNECTED YOUTH. (a) In General.— Subsection (d) of section 51 26 USC 51. is amended by adding at the end the following new paragraph: “(14) Credit allowed for unemployed veterans and disconnected youth hired in 2009 or 2010.— “(A) In general.— Any unemployed veteran or disconnected youth who begins work for the employer during 2009 or 2010 shall be treated as a member of a targeted group for purposes of this subpart. “(B) Definitions.— For purposes of this paragraph— “(i) Unemployed veteran.— The term ‘unemployed veteran’ means any veteran (as defined in paragraph (3)(B), determined without regard to clause (ii) thereof) who is certified by the designated local agency as— “(I) having been discharged or released from active duty in the Armed Forces at any time during the 5-year period ending on the hiring date, and “(II) being in receipt of unemployment compensation under State or Federal law for not less than 4 weeks during the 1-year period ending on the hiring date. “(ii) Disconnected youth.— The term ‘disconnected youth’ means any individual who is certified by the designated local agency— “(I) as having attained age 16 but not age 25 on the hiring date, “(II) as not regularly attending any secondary, technical, or post-secondary school during the 6-month period preceding the hiring date, “(III) as not regularly employed during such 6-month period, and “(IV) as not readily employable by reason of lacking a sufficient number of basic skills.” . (b) Effective Date.— The amendments made by this section shall apply to individuals who begin work for the employer after December 31, 2008. PART IV— RULES RELATING TO DEBT INSTRUMENTS SEC. 1231. DEFERRAL AND RATABLE INCLUSION OF INCOME ARISING FROM BUSINESS INDEBTEDNESS DISCHARGED BY THE REACQUISITION OF A DEBT INSTRUMENT. (a) In General.— Section 108 26 USC 108. (relating to income from discharge of indebtedness) is amended by adding at the end the following new subsection: “(i) Deferral and Ratable Inclusion of Income Arising From Business Indebtedness Discharged by the Reacquisition of a Debt Instrument.— “(1) In general.— At the Time periods. election of the taxpayer, income from the discharge of indebtedness in connection with the reacquisition after December 31, 2008, and before January 1, 2011, of an applicable debt instrument shall be includible in gross income ratably over the 5-taxable-year period beginning with— “(A) in the case of a reacquisition occurring in 2009, the fifth taxable year following the taxable year in which the reacquisition occurs, and “(B) in the case of a reacquisition occurring in 2010, the fourth taxable year following the taxable year in which the reacquisition occurs. “(2) Deferral of deduction for original issue discount in debt for debt exchanges.— “(A) In general.— If, as part of a reacquisition to which paragraph (1) applies, any debt instrument is issued for the applicable debt instrument being reacquired (or is treated as so issued under subsection (e)(4) and the regulations thereunder) and there is any original issue discount determined under subpart A of part V of subchapter P of this chapter with respect to the debt instrument so issued— “(i) except as provided in clause (ii), no deduction otherwise allowable under this chapter shall be allowed to the issuer of such debt instrument with respect to the portion of such original issue discount which— “(I) accrues before the 1st taxable year in the 5-taxable-year period in which income from the discharge of indebtedness attributable to the reacquisition of the debt instrument is includible under paragraph (1), and “(II) does not exceed the income from the discharge of indebtedness with respect to the debt instrument being reacquired, and “(ii) the aggregate amount of deductions disallowed under clause (i) shall be allowed as a deduction ratably over the 5-taxable-year period described in clause (i)(I). If the amount of the original issue discount accruing before such 1st taxable year exceeds the income from the discharge of indebtedness with respect to the applicable debt instrument being reacquired, the deductions shall be disallowed in the order in which the original issue discount is accrued. “(B) Deemed debt for debt exchanges.— For purposes of subparagraph (A), if any debt instrument is issued by an issuer and the proceeds of such debt instrument are used directly or indirectly by the issuer to reacquire an applicable debt instrument of the issuer, the debt instrument so issued shall be treated as issued for the debt instrument being reacquired. Regulations. Applicability. If only a portion of the proceeds from a debt instrument are so used, the rules of subparagraph (A) shall apply to the portion of any original issue discount on the newly issued debt instrument which is equal to the portion of the proceeds from such instrument used to reacquire the outstanding instrument. “(3) Applicable debt instrument.— For purposes of this subsection— “(A) Applicable debt instrument.— The term ‘applicable debt instrument’ means any debt instrument which was issued by— “(i) a C corporation, or “(ii) any other person in connection with the conduct of a trade or business by such person. “(B) Debt instrument.— The term ‘debt instrument’ means a bond, debenture, note, certificate, or any other instrument or contractual arrangement constituting indebtedness (within the meaning of section 1275(a)(1)). “(4) Reacquisition.— For purposes of this subsection— “(A) In general.— The term ‘reacquisition’ means, with respect to any applicable debt instrument, any acquisition of the debt instrument by— “(i) the debtor which issued (or is otherwise the obligor under) the debt instrument, or “(ii) a related person to such debtor. “(B) Acquisition.— The term ‘acquisition’ shall, with respect to any applicable debt instrument, include an acquisition of the debt instrument for cash, the exchange of the debt instrument for another debt instrument (including an exchange resulting from a modification of the debt instrument), the exchange of the debt instrument for corporate stock or a partnership interest, and the contribution of the debt instrument to capital. Such term shall also include the complete forgiveness of the indebtedness by the holder of the debt instrument. “(5) Other definitions and rules.— For purposes of this subsection— “(A) Related person.— The determination of whether a person is related to another person shall be made in the same manner as under subsection (e)(4). “(B) Election.— “(i) In general.— An election under this subsection with respect to any applicable debt instrument shall be made by including with the return of tax imposed by chapter 1 for the taxable year in which the reacquisition of the debt instrument occurs a statement which— “(I) clearly identifies such instrument, and “(II) includes the amount of income to which paragraph (1) applies and such other information as the Secretary may prescribe. “(ii) Election irrevocable.— Such election, once made, is irrevocable. “(iii) Pass-thru entities.— In the case of a partnership, S corporation, or other pass-thru entity, the election under this subsection shall be made by the partnership, the S corporation, or other entity involved. “(C) Coordination with other exclusions.— If a taxpayer elects to have this subsection apply to an applicable debt instrument, subparagraphs (A), (B), (C), and (D) of subsection (a)(1) shall not apply to the income from the discharge of such indebtedness for the taxable year of the election or any subsequent taxable year. “(D) Acceleration of deferred items.— “(i) In general.— In the case of the death of the taxpayer, the liquidation or sale of substantially all the assets of the taxpayer (including in a title 11 or similar case), the cessation of business by the taxpayer, or similar circumstances, any item of income or deduction which is deferred under this subsection (and has not previously been taken into account) shall be taken into account in the taxable year in which such event occurs (or in the case of a title 11 or similar case, the day before the petition is filed). “(ii) Special rule for pass-thru entities.— The rule of clause (i) shall also apply in the case of the sale or exchange or redemption of an interest in a partnership, S corporation, or other pass- thru entity by a partner, shareholder, or other person holding an ownership interest in such entity. “(6) Special rule for partnerships.— In the case of a partnership, any income deferred under this subsection shall be allocated to the partners in the partnership immediately before the discharge in the manner such amounts would have been included in the distributive shares of such partners under section 704 if such income were recognized at such time. Any decrease in a partner’s share of partnership liabilities as a result of such discharge shall not be taken into account for purposes of section 752 at the time of the discharge to the extent it would cause the partner to recognize gain under section 731. Any decrease in partnership liabilities deferred under the preceding sentence shall be taken into account by such partner at the same time, and to the extent remaining in the same amount, as income deferred under this subsection is recognized. “(7) Secretarial authority.— The Secretary may prescribe such regulations, rules, or other guidance as may be necessary or appropriate for purposes of applying this subsection, including— “(A) extending the application of the rules of paragraph (5)(D) to other circumstances where appropriate, “(B) requiring reporting of the election (and such other information as the Secretary may require) on returns of tax for subsequent taxable years, and “(C) rules for the application of this subsection to partnerships, S corporations, and other pass-thru entities, including for the allocation of deferred deductions.” . (b) Effective Date.— The amendments made by this section shall apply to discharges in taxable years ending after December 31, 2008. SEC. 1232. MODIFICATIONS OF RULES FOR ORIGINAL ISSUE DISCOUNT ON CERTAIN HIGH YIELD OBLIGATIONS. (a) Suspension of Special Rules.— Section 163(e)(5) 26 USC 163. (relating to special rules for original issue discount on certain high yield obligations) is amended by redesignating subparagraph (F) as subparagraph (G) and by inserting after subparagraph (E) the following new subparagraph: “(F) Suspension of application of paragraph.— “(i) Temporary suspension.— This Time period. paragraph shall not apply to any applicable high yield discount obligation issued during the period beginning on September 1, 2008, and ending on December 31, 2009, in exchange (including an exchange resulting from a modification of the debt instrument) for an obligation which is not an applicable high yield discount obligation and the issuer (or obligor) of which is the same as the issuer (or obligor) of such applicable high yield discount obligation. The preceding sentence shall not apply to any obligation the interest on which is interest described in section 871(h)(4) (without regard to subparagraph (D) thereof) or to any obligation issued to a related person (within the meaning of section 108(e)(4)). “(ii) Successive application.— Any obligation to which clause (i) applies shall not be treated as an applicable high yield discount obligation for purposes of applying this subparagraph to any other obligation issued in exchange for such obligation. “(iii) Secretarial authority to suspend application.— The Secretary may apply this paragraph with respect to debt instruments issued in periods following the period described in clause (i) if the Secretary determines that such application is appropriate in light of distressed conditions in the debt capital markets.” . (b) Interest Rate Used in Determining High Yield Obligations.— The last sentence of section 163(i)(1) is amended— (1) by inserting “(i)” after “regulation”, and (2) by inserting “, or (ii) permit, on a temporary basis, a rate to be used with respect to any debt instrument which is higher than the applicable Federal rate if the Secretary determines that such rate is appropriate in light of distressed conditions in the debt capital markets” before the period at the end. (c) Effective Date.— (1) Suspension.— The amendments made by subsection (a) shall apply to obligations issued after August 31, 2008, in taxable years ending after such date. (2) Interest rate authority.— The amendments made by subsection (b) shall apply to obligations issued after December 31, 2009, in taxable years ending after such date. PART V— QUALIFIED SMALL BUSINESS STOCK SEC. 1241. SPECIAL RULES APPLICABLE TO QUALIFIED SMALL BUSINESS STOCK FOR 2009 AND 2010. (a) In General.— Section 1202(a) is amended by adding at the end the following new paragraph: “(3) Special rules for 2009 and 2010.— In the case of qualified small business stock acquired after the date of the enactment of this paragraph and before January 1, 2011— “(A) paragraph (1) shall be applied by substituting ‘75 percent’ for ‘50 percent’, and “(B) paragraph (2) shall not apply.” . (b) Effective Date.— The amendment made by this section shall apply to stock acquired after the date of the enactment of this Act. PART VI— S CORPORATIONS SEC. 1251. TEMPORARY REDUCTION IN RECOGNITION PERIOD FOR BUILT-IN GAINS TAX. (a) In General.— Paragraph (7) of section 1374(d) 26 USC 1374. (relating to definitions and special rules) is amended to read as follows: “(7) Recognition period.— “(A) In general.— The term ‘recognition period’ means the 10-year period beginning with the 1st day of the 1st taxable year for which the corporation was an S corporation. “(B) Special rule for 2009 and 2010.— In the case of any taxable year beginning in 2009 or 2010, no tax shall be imposed on the net recognized built-in gain of an S corporation if the 7th taxable year in the recognition period preceded such taxable year. Applicability. The preceding sentence shall be applied separately with respect to any asset to which paragraph (8) applies. “(C) Special rule for distributions to shareholders.— For purposes of applying this section to any amount includible in income by reason of distributions to shareholders pursuant to section 593(e)— “(i) subparagraph (A) shall be applied without regard to the phrase ‘10-year’, and “(ii) subparagraph (B) shall not apply.” . (b) Effective Date.— The amendment made by this section shall apply to taxable years beginning after December 31, 2008. PART VII— RULES RELATING TO OWNERSHIP CHANGES SEC. 1261. CLARIFICATION OF REGULATIONS RELATED TO LIMITATIONS ON CERTAIN BUILT-IN LOSSES FOLLOWING AN OWNERSHIP CHANGE. (a) Findings.— Congress finds as follows: (1) The delegation of authority to the Secretary of the Treasury under section 382(m) of the Internal Revenue Code of 1986 does not authorize the Secretary to provide exemptions or special rules that are restricted to particular industries or classes of taxpayers. (2) Internal Revenue Service Notice 2008–83 is inconsistent with the congressional intent in enacting such section 382(m). (3) The legal authority to prescribe Internal Revenue Service Notice 2008–83 is doubtful. (4) However, as taxpayers should generally be able to rely on guidance issued by the Secretary of the Treasury legislation is necessary to clarify the force and effect of Internal Revenue Service Notice 2008–83 and restore the proper application under the Internal Revenue Code of 1986 of the limitation on built-in losses following an ownership change of a bank. (b) Determination of Force and Effect of Internal Revenue Service Notice 2008–83 Exempting Banks From Limitation on Certain Built–in Losses Following Ownership Change.— (1) In general.— Internal Revenue Service Notice 2008–83— (A) shall be deemed to have the force and effect of law with respect to any ownership change (as defined in section 382(g) of the Internal Revenue Code of 1986) occurring on or before January 16, 2009, and (B) shall have no force or effect with respect to any ownership change after such date. (2) Binding contracts.— Notwithstanding paragraph (1), Internal Revenue Service Notice 2008–83 shall have the force and effect of law with respect to any ownership change (as so defined) which occurs after January 16, 2009, if such change— (A) is pursuant to a written binding contract entered into on or before such date, or (B) is pursuant to a written agreement entered into on or before such date and such agreement was described on or before such date in a public announcement or in a filing with the Securities and Exchange Commission required by reason of such ownership change. SEC. 1262. TREATMENT OF CERTAIN OWNERSHIP CHANGES FOR PURPOSES OF LIMITATIONS ON NET OPERATING LOSS CARRYFORWARDS AND CERTAIN BUILT-IN LOSSES. (a) In General.— Section 382 26 USC 382. is amended by adding at the end the following new subsection: “(n) Special Rule for Certain Ownership Changes.— “(1) In general.— The limitation contained in subsection (a) shall not apply in the case of an ownership change which is pursuant to a restructuring plan of a taxpayer which— “(A) is required under a loan agreement or a commitment for a line of credit entered into with the Department of the Treasury under the Emergency Economic Stabilization Act of 2008, and “(B) is intended to result in a rationalization of the costs, capitalization, and capacity with respect to the manufacturing workforce of, and suppliers to, the taxpayer and its subsidiaries. “(2) Subsequent acquisitions.— Paragraph (1) shall not apply in the case of any subsequent ownership change unless such ownership change is described in such paragraph. “(3) Limitation based on control in corporation.— “(A) In general.— Paragraph (1) shall not apply in the case of any ownership change if, immediately after such ownership change, any person (other than a voluntary employees’ beneficiary association under section 501(c)(9)) owns stock of the new loss corporation possessing 50 percent or more of the total combined voting power of all classes of stock entitled to vote, or of the total value of the stock of such corporation. “(B) Treatment of related persons.— “(i) In general.— Related persons shall be treated as a single person for purposes of this paragraph. “(ii) Related persons.— For purposes of clause (i), a person shall be treated as related to another person if— “(I) such person bears a relationship to such other person described in section 267(b) or 707(b), or “(II) such persons are members of a group of persons acting in concert.” . (b) Effective Date.— The amendment made by this section shall apply to ownership changes after the date of the enactment of this Act. Subtitle D— Manufacturing Recovery Provisions SEC. 1301. TEMPORARY EXPANSION OF AVAILABILITY OF INDUSTRIAL DEVELOPMENT BONDS TO FACILITIES MANUFACTURING INTANGIBLE PROPERTY. (a) In General.— Subparagraph (C) of section 144(a)(12) 26 USC 144. is amended— (1) by striking “For purposes of this paragraph, the term” and inserting “For purposes of this paragraph— “(i) In general.— The term” , and (2) by striking the last sentence and inserting the following new clauses: “(ii) Certain facilities included.— Such term includes facilities which are directly related and ancillary to a manufacturing facility (determined without regard to this clause) if— “(I) such facilities are located on the same site as the manufacturing facility, and “(II) not more than 25 percent of the net proceeds of the issue are used to provide such facilities. “(iii) Special rules for bonds issued in 2009 and 2010.— In the case of any issue made after the date of enactment of this clause and before January 1, 2011, clause (ii) shall not apply and the net proceeds from a bond shall be considered to be used to provide a manufacturing facility if such proceeds are used to provide— “(I) a facility which is used in the creation or production of intangible property which is described in section 197(d)(1)(C)(iii), or “(II) a facility which is functionally related and subordinate to a manufacturing facility (determined without regard to this subclause) if such facility is located on the same site as the manufacturing facility.” . (b) Effective Date.— The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act. SEC. 1302. CREDIT FOR INVESTMENT IN ADVANCED ENERGY FACILITIES. (a) In General.— Section 46 26 USC 46. (relating to amount of credit) is amended by striking “and” at the end of paragraph (3), by striking the period at the end of paragraph (4), and by adding at the end the following new paragraph: “(5) the qualifying advanced energy project credit.” . (b) Amount of Credit.— Subpart E of part IV of subchapter A of chapter 1 (relating to rules for computing investment credit) is amended by inserting after section 48B the following new section: “SEC. 48C. QUALIFYING ADVANCED ENERGY PROJECT CREDIT. “(a) In General.— For purposes of section 46, the qualifying advanced energy project credit for any taxable year is an amount equal to 30 percent of the qualified investment for such taxable year with respect to any qualifying advanced energy project of the taxpayer. “(b) Qualified Investment.— “(1) In general.— For purposes of subsection (a), the qualified investment for any taxable year is the basis of eligible property placed in service by the taxpayer during such taxable year which is part of a qualifying advanced energy project. “(2) Certain qualified progress expenditures rules made applicable.— Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this section. “(3) Limitation.— The amount which is treated for all taxable years with respect to any qualifying advanced energy project shall not exceed the amount designated by the Secretary as eligible for the credit under this section. “(c) Definitions.— “(1) Qualifying advanced energy project.— “(A) In general.— The term ‘qualifying advanced energy project’ means a project— “(i) which re-equips, expands, or establishes a manufacturing facility for the production of— “(I) property designed to be used to produce energy from the sun, wind, geothermal deposits (within the meaning of section 613(e)(2)), or other renewable resources, “(II) fuel cells, microturbines, or an energy storage system for use with electric or hybrid-electric motor vehicles, “(III) electric grids to support the transmission of intermittent sources of renewable energy, including storage of such energy, “(IV) property designed to capture and sequester carbon dioxide emissions, “(V) property designed to refine or blend renewable fuels or to produce energy conservation technologies (including energy-conserving lighting technologies and smart grid technologies), “(VI) new qualified plug-in electric drive motor vehicles (as defined by section 30D), qualified plug-in electric vehicles (as defined by section 30(d)), or components which are designed specifically for use with such vehicles, including electric motors, generators, and power control units, or “(VII) other advanced energy property designed to reduce greenhouse gas emissions as may be determined by the Secretary, and “(ii) any portion of the qualified investment of which is certified by the Secretary under subsection (d) as eligible for a credit under this section. “(B) Exception.— Such term shall not include any portion of a project for the production of any property which is used in the refining or blending of any transportation fuel (other than renewable fuels). “(2) Eligible property.— The term ‘eligible property’ means any property— “(A) which is necessary for the production of property described in paragraph (1)(A)(i), “(B) which is— “(i) tangible personal property, or “(ii) other tangible property (not including a building or its structural components), but only if such property is used as an integral part of the qualified investment credit facility, and “(C) with respect to which depreciation (or amortization in lieu of depreciation) is allowable. “(d) Qualifying Advanced Energy Project Program.— “(1) Establishment.— “(A) In general.— Not later Deadline. than 180 days after the date of enactment of this section, the Secretary, in consultation with the Secretary of Energy, shall establish a qualifying advanced energy project program to consider and award certifications for qualified investments eligible for credits under this section to qualifying advanced energy project sponsors. “(B) Limitation.— The total amount of credits that may be allocated under the program shall not exceed $2,300,000,000. “(2) Certification.— “(A) Application period.— Each applicant for certification under this paragraph shall submit an application containing such information as the Secretary may require during the 2-year period beginning on the date the Secretary establishes the program under paragraph (1). “(B) Time to meet criteria for certification.— Each applicant for certification shall have 1 year from the date of acceptance by the Secretary of the application during which to provide to the Secretary evidence that the requirements of the certification have been met. “(C) Period of issuance.— An applicant which receives a certification shall have 3 years from the date of issuance of the certification in order to place the project in service and if such project is not placed in service by that time period, then the certification shall no longer be valid. “(3) Selection criteria.— In determining which qualifying advanced energy projects to certify under this section, the Secretary— “(A) shall take into consideration only those projects where there is a reasonable expectation of commercial viability, and “(B) shall take into consideration which projects— “(i) will provide the greatest domestic job creation (both direct and indirect) during the credit period, “(ii) will provide the greatest net impact in avoiding or reducing air pollutants or anthropogenic emissions of greenhouse gases, “(iii) have the greatest potential for technological innovation and commercial deployment, “(iv) have the lowest levelized cost of generated or stored energy, or of measured reduction in energy consumption or greenhouse gas emission (based on costs of the full supply chain), and “(v) have the shortest project time from certification to completion. “(4) Review and redistribution.— “(A) Review.— Not later than 4 years after the date of enactment of this section, the Secretary shall review the credits allocated under this section as of such date. “(B) Redistribution.— The Secretary may reallocate credits awarded under this section if the Secretary determines that— “(i) there is an insufficient quantity of qualifying applications for certification pending at the time of the review, or “(ii) any certification made pursuant to paragraph (2) has been revoked pursuant to paragraph (2)(B) because the project subject to the certification has been delayed as a result of third party opposition or litigation to the proposed project. “(C) Reallocation.— If the Secretary determines that credits under this section are available for reallocation pursuant to the requirements set forth in paragraph (2), the Secretary is authorized to conduct an additional program for applications for certification. “(5) Disclosure of allocations.— The Secretary shall, upon making a certification under this subsection, publicly disclose the identity of the applicant and the amount of the credit with respect to such applicant. “(e) Denial of Double Benefit.— A credit shall not be allowed under this section for any qualified investment for which a credit is allowed under section 48, 48A, or 48B.” . (c) Conforming Amendments.— (1) Section 49(a)(1)(C) 26 USC 49. is amended by striking “and” at the end of clause (iii), by striking the period at the end of clause (iv) and inserting “, and”, and by adding after clause (iv) the following new clause: “(v) the basis of any property which is part of a qualifying advanced energy project under section 48C.” . (2) The table of sections for subpart E of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 48B the following new item: “48C. Qualifying advanced energy project credit.”. (d) Effective Date.— The amendments made by this section shall apply to periods after the date of the enactment of this Act, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990). Subtitle E— Economic Recovery Tools SEC. 1401. RECOVERY ZONE BONDS. (a) In General.— Subchapter Y of chapter 1 is amended by adding at the end the following new part: “PART III— RECOVERY ZONE BONDS “Sec. 1400U–1.  Allocation of recovery zone bonds. “Sec. 1400U–2.  Recovery zone economic development bonds. “Sec. 1400U–3.  Recovery zone facility bonds. “SEC. 1400U–1. ALLOCATION OF RECOVERY ZONE BONDS. “(a) Allocations.— “(1) In general.— “(A) General allocation.— The Secretary shall allocate the national recovery zone economic development bond limitation and the national recovery zone facility bond limitation among the States in the proportion that each such State’s 2008 State employment decline bears to the aggregate of the 2008 State employment declines for all of the States. “(B) Minimum allocation.— The Secretary shall adjust the allocations under subparagraph (A) for any calendar year for each State to the extent necessary to ensure that no State receives less than 0.9 percent of the national recovery zone economic development bond limitation and 0.9 percent of the national recovery zone facility bond limitation. “(2) 2008 state employment decline.— For purposes of this subsection, the term ‘2008 State employment decline’ means, with respect to any State, the excess (if any) of— “(A) the number of individuals employed in such State determined for December 2007, over “(B) the number of individuals employed in such State determined for December 2008. “(3) Allocations by states.— “(A) In general.— Each State with respect to which an allocation is made under paragraph (1) shall reallocate such allocation among the counties and large municipalities in such State in the proportion to each such county’s or municipality’s 2008 employment decline bears to the aggregate of the 2008 employment declines for all the counties and municipalities in such State. Waiver authority. A county or municipality may waive any portion of an allocation made under this subparagraph. “(B) Large municipalities.— For purposes of subparagraph (A), the term ‘large municipality’ means a municipality with a population of more than 100,000. “(C) Determination of local employment declines.— For purposes of this paragraph, the employment decline of any municipality or county shall be determined in the same manner as determining the State employment decline under paragraph (2), except that in the case of a municipality any portion of which is in a county, such portion shall be treated as part of such municipality and not part of such county. “(4) National limitations.— “(A) Recovery zone economic development bonds.— There is a national recovery zone economic development bond limitation of $10,000,000,000. “(B) Recovery zone facility bonds.— There is a national recovery zone facility bond limitation of $15,000,000,000. “(b) Recovery Zone.— For purposes of this part, the term ‘recovery zone’ means— “(1) any area designated by the issuer as having significant poverty, unemployment, rate of home foreclosures, or general distress, “(2) any area designated by the issuer as economically distressed by reason of the closure or realignment of a military installation pursuant to the Defense Base Closure and Realignment Act of 1990, and “(3) any area for which a designation as an empowerment zone or renewal community is in effect. “SEC. 1400U–2. RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS. “(a) In General.— In the case of a recovery zone economic development bond— “(1) such bond shall be treated as a qualified bond for purposes of section 6431, and “(2) subsection (b) of such section shall be applied by substituting ‘45 percent’ for ‘35 percent’. “(b) Recovery Zone Economic Development Bond.— “(1) In general.— For purposes of this section, the term ‘recovery zone economic development bond’ means any build America bond (as defined in section 54AA(d)) issued before January 1, 2011, as part of issue if— “(A) 100 percent of the excess of— “(i) the available project proceeds (as defined in section 54A) of such issue, over “(ii) the amounts in a reasonably required reserve (within the meaning of section 150(a)(3)) with respect to such issue, are to be used for one or more qualified economic development purposes, and “(B) the issuer designates such bond for purposes of this section. “(2) Limitation on amount of bonds designated.— The maximum aggregate face amount of bonds which may be designated by any issuer under paragraph (1) shall not exceed the amount of the recovery zone economic development bond limitation allocated to such issuer under section 1400U–1. “(c) Qualified Economic Development Purpose.— For purposes of this section, the term ‘qualified economic development purpose’ means expenditures for purposes of promoting development or other economic activity in a recovery zone, including— “(1) capital expenditures paid or incurred with respect to property located in such zone, “(2) expenditures for public infrastructure and construction of public facilities, and “(3) expenditures for job training and educational programs. “SEC. 1400U–3. RECOVERY ZONE FACILITY BONDS. “(a) In General.— For purposes of part IV of subchapter B (relating to tax exemption requirements for State and local bonds), the term ‘exempt facility bond’ includes any recovery zone facility bond. “(b) Recovery Zone Facility Bond.— “(1) In general.— For purposes of this section, the term ‘recovery zone facility bond’ means any bond issued as part of an issue if— “(A) 95 percent or more of the net proceeds (as defined in section 150(a)(3)) of such issue are to be used for recovery zone property, “(B) such bond is issued before January 1, 2011, and “(C) the issuer designates such bond for purposes of this section. “(2) Limitation on amount of bonds designated.— The maximum aggregate face amount of bonds which may be designated by any issuer under paragraph (1) shall not exceed the amount of recovery zone facility bond limitation allocated to such issuer under section 1400U–1. “(c) Recovery Zone Property.— For purposes of this section— “(1) In general.— The term ‘recovery zone property’ means any property to which section 168 applies (or would apply but for section 179) if— “(A) such property was constructed, reconstructed, renovated, or acquired by purchase (as defined in section 179(d)(2)) by the taxpayer after the date on which the designation of the recovery zone took effect, “(B) the original use of which in the recovery zone commences with the taxpayer, and “(C) substantially all of the use of which is in the recovery zone and is in the active conduct of a qualified business by the taxpayer in such zone. “(2) Qualified business.— The term ‘qualified business’ means any trade or business except that— “(A) the rental to others of real property located in a recovery zone shall be treated as a qualified business only if the property is not residential rental property (as defined in section 168(e)(2)), and “(B) such term shall not include any trade or business consisting of the operation of any facility described in section 144(c)(6)(B). “(3) Special rules for substantial renovations and sale-leaseback.— Rules similar Applicability. to the rules of subsections (a)(2) and (b) of section 1397D shall apply for purposes of this subsection. “(d) Nonapplication of Certain Rules.— Sections 146 (relating to volume cap) and 147(d) (relating to acquisition of existing property not permitted) shall not apply to any recovery zone facility bond.” . (b) Clerical Amendment.— The table of parts for subchapter Y of chapter 1 of such Code is amended by adding at the end the following new item: “Part III. Recovery Zone Bonds.”. (c) Effective Date.— The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act. SEC. 1402. TRIBAL ECONOMIC DEVELOPMENT BONDS. (a) In General.— Section 7871 26 USC 7871. is amended by adding at the end the following new subsection: “(f) Tribal Economic Development Bonds.— “(1) Allocation of limitation.— “(A) In general.— The Secretary shall allocate the national tribal economic development bond limitation among the Indian tribal governments in such manner as the Secretary, in consultation with the Secretary of the Interior, determines appropriate. “(B) National limitation.— There is a national tribal economic development bond limitation of $2,000,000,000. “(2) Bonds treated as exempt from tax.— In the case of a tribal economic development bond— “(A) notwithstanding subsection (c), such bond shall be treated for purposes of this title in the same manner as if such bond were issued by a State, “(B) the Indian tribal government issuing such bond and any instrumentality of such Indian tribal government shall be treated as a State for purposes of section 141, and “(C) section 146 shall not apply. “(3) Tribal economic development bond.— “(A) In general.— For purposes of this section, the term ‘tribal economic development bond’ means any bond issued by an Indian tribal government— “(i) the interest on which would be exempt from tax under section 103 if issued by a State or local government, and “(ii) which is designated by the Indian tribal government as a tribal economic development bond for purposes of this subsection. “(B) Exceptions.— Such term shall not include any bond issued as part of an issue if any portion of the proceeds of such issue are used to finance— “(i) any portion of a building in which class II or class III gaming (as defined in section 4 of the Indian Gaming Regulatory Act) is conducted or housed or any other property actually used in the conduct of such gaming, or “(ii) any facility located outside the Indian reservation (as defined in section 168(j)(6)). “(C) Limitation on amount of bonds designated.— The maximum aggregate face amount of bonds which may be designated by any Indian tribal government under subparagraph (A) shall not exceed the amount of national tribal economic development bond limitation allocated to such government under paragraph (1).” . (b) Study.— The Secretary of the Treasury, or the Secretary’s delegate, shall conduct a study of the effects of the amendment made by subsection (a). Deadline. Reports. Not later than 1 year after the date of the enactment of this Act, the Secretary of the Treasury, or the Secretary’s delegate, shall report to Congress on the results of the study conducted under this paragraph, including the Secretary’s recommendations regarding such amendment. (c) Effective Date.— The amendment made by subsection (a) shall apply to obligations issued after the date of the enactment of this Act. SEC. 1403. INCREASE IN NEW MARKETS TAX CREDIT. (a) In General.— Section 45D(f)(1) 26 USC 45. is amended— (1) by striking “and” at the end of subparagraph (C), (2) by striking “, 2007, 2008, and 2009.” in subparagraph (D), and inserting “and 2007,”, and (3) by adding at the end the following new subparagraphs: “(E) $5,000,000,000 for 2008, and “(F) $5,000,000,000 for 2009.” . (b) Special Rule for Allocation of Increased 2008 Limitation.— The amount of the increase in the new markets tax credit limitation for calendar year 2008 by reason of the amendments made by subsection (a) shall be allocated in accordance with section 45D(f)(2) of the Internal Revenue Code of 1986 to qualified community development entities (as defined in section 45D(c) of such Code) which— (1) submitted an allocation application with respect to calendar year 2008, and (2) (A) did not receive an allocation for such calendar year, or (B) received an allocation for such calendar year in an amount less than the amount requested in the allocation application. SEC. 1404. COORDINATION OF LOW-INCOME HOUSING CREDIT AND LOW-INCOME HOUSING GRANTS.   Subsection (i) of section 42 is amended by adding at the end the following new paragraph: “(9) Coordination with low-income housing grants.— “(A) Reduction in state housing credit ceiling for low-income housing grants received in 2009.— For purposes of this section, the amounts described in clauses (i) through (iv) of subsection (h)(3)(C) with respect to any State for 2009 shall each be reduced by so much of such amount as is taken into account in determining the amount of any grant to such State under section 1602 of the American Recovery and Reinvestment Tax Act of 2009. “(B) Special rule for basis.— Basis of a qualified low-income building shall not be reduced by the amount of any grant described in subparagraph (A).” . Subtitle F— Infrastructure Financing Tools PART I— IMPROVED MARKETABILITY FOR TAX-EXEMPT BONDS SEC. 1501. DE MINIMIS SAFE HARBOR EXCEPTION FOR TAX-EXEMPT INTEREST EXPENSE OF FINANCIAL INSTITUTIONS. (a) In General.— Subsection (b) of section 265 26 USC 265. is amended by adding at the end the following new paragraph: “(7) De minimis exception for bonds issued during 2009 or 2010.— “(A) In general.— In applying paragraph (2)(A), there shall not be taken into account tax-exempt obligations issued during 2009 or 2010. “(B) Limitation.— The amount of tax-exempt obligations not taken into account by reason of subparagraph (A) shall not exceed 2 percent of the amount determined under paragraph (2)(B). “(C) Refundings.— For purposes of this paragraph, a refunding bond (whether a current or advance refunding) shall be treated as issued on the date of the issuance of the refunded bond (or in the case of a series of refundings, the original bond).” . (b) Treatment as Financial Institution Preference Item.— Clause (iv) of section 291(e)(1)(B) is amended by adding at the end the following: “That portion of any obligation not taken into account under paragraph (2)(A) of section 265(b) by reason of paragraph (7) of such section shall be treated for purposes of this section as having been acquired on August 7, 1986.”. (c) Effective Date.— The amendments made by this section shall apply to obligations issued after December 31, 2008. SEC. 1502. MODIFICATION OF SMALL ISSUER EXCEPTION TO TAX-EXEMPT INTEREST EXPENSE ALLOCATION RULES FOR FINANCIAL INSTITUTIONS. (a) In General.— Paragraph (3) of section 265(b) (relating to exception for certain tax-exempt obligations) is amended by adding at the end the following new subparagraph: “(G) Special rules for obligations issued during 2009 and 2010.— “(i) Increase in limitation.— In the Applicability. case of obligations issued during 2009 or 2010, subparagraphs (C)(i), (D)(i), and (D)(iii)(II) shall each be applied by substituting ‘$30,000,000’ for ‘$10,000,000’. “(ii) Qualified 501(c)(3) bonds treated as issued by exempt organization.— In the Applicability. case of a qualified 501(c)(3) bond (as defined in section 145) issued during 2009 or 2010, this paragraph shall be applied by treating the 501(c)(3) organization for whose benefit such bond was issued as the issuer. “(iii) Special rule for qualified financings.— In the case of a qualified financing issue issued during 2009 or 2010— “(I) subparagraph (F) shall not apply, and “(II) any obligation issued as a part of such issue shall be treated as a qualified tax-exempt obligation if the requirements of this paragraph are met with respect to each qualified portion of the issue (determined by treating each qualified portion as a separate issue which is issued by the qualified borrower with respect to which such portion relates). “(iv) Qualified financing issue.— For purposes of this subparagraph, the term ‘qualified financing issue’ means any composite, pooled, or other conduit financing issue the proceeds of which are used directly or indirectly to make or finance loans to 1 or more ultimate borrowers each of whom is a qualified borrower. “(v) Qualified portion.— For purposes of this subparagraph, the term ‘qualified portion’ means that portion of the proceeds which are used with respect to each qualified borrower under the issue. “(vi) Qualified borrower.— For purposes of this subparagraph, the term ‘qualified borrower’ means a borrower which is a State or political subdivision thereof or an organization described in section 501(c)(3) and exempt from taxation under section 501(a).” . (b) Effective Date.— The amendment made by this section shall apply to obligations issued after December 31, 2008. SEC. 1503. TEMPORARY MODIFICATION OF ALTERNATIVE MINIMUM TAX LIMITATIONS ON TAX-EXEMPT BONDS. (a) Interest on Private Activity Bonds Issued During 2009 and 2010 Not Treated as Tax Preference Item.— Subparagraph (C) of section 57(a)(5) 26 USC 57. is amended by adding at the end a new clause: “(vi) Exception for bonds issued in 2009 and 2010.— “(I) In general.— For purposes of clause (i), the term ‘private activity bond’ shall not include any bond issued after December 31, 2008, and before January 1, 2011. “(II) Treatment of refunding bonds.— For purposes of subclause (I), a refunding bond (whether a current or advance refunding) shall be treated as issued on the date of the issuance of the refunded bond (or in the case of a series of refundings, the original bond). “(III) Exception for certain refunding bonds.— Subclause (II) shall not apply to any refunding bond which is issued to refund any bond which was issued after December 31, 2003, and before January 1, 2009.” . (b) No Adjustment to Adjusted Current Earnings for Interest on Tax-Exempt Bonds Issued During 2009 and 2010.— Subparagraph (B) of section 56(g)(4) is amended by adding at the end the following new clause: “(iv) Tax exempt interest on bonds issued in 2009 and 2010.— “(I) In general.— Clause (i) shall not apply in the case of any interest on a bond issued after December 31, 2008, and before January 1, 2011. “(II) Treatment of refunding bonds.— For purposes of subclause (I), a refunding bond (whether a current or advance refunding) shall be treated as issued on the date of the issuance of the refunded bond (or in the case of a series of refundings, the original bond). “(III) Exception for certain refunding bonds.— Subclause (II) shall not apply to any refunding bond which is issued to refund any bond which was issued after December 31, 2003, and before January 1, 2009.” . (c) Effective Date.— The amendments made by this section shall apply to obligations issued after December 31, 2008. SEC. 1504. MODIFICATION TO HIGH SPEED INTERCITY RAIL FACILITY BONDS. (a) In General.— Paragraph (1) of section 142(i) 26 USC 142. is amended by striking “operate at speeds in excess of” and inserting “be capable of attaining a maximum speed in excess of”. (b) Effective Date.— The amendment made by this section shall apply to obligations issued after the date of the enactment of this Act. PART II— DELAY IN APPLICATION OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS SEC. 1511. DELAY IN APPLICATION OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS.   Subsection (b) of section 511 of the Tax Increase Prevention and Reconciliation Act of 2005 26 USC 3402. is amended by striking “December 31, 2010” and inserting “December 31, 2011”. PART III— TAX CREDIT BONDS FOR SCHOOLS SEC. 1521. QUALIFIED SCHOOL CONSTRUCTION BONDS. (a) In General.— Subpart I of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section: “SEC. 54F. QUALIFIED SCHOOL CONSTRUCTION BONDS. “(a) Qualified School Construction Bond.— For purposes of this subchapter, the term ‘qualified school construction bond’ means any bond issued as part of an issue if— “(1) 100 percent of the available project proceeds of such issue are to be used for the construction, rehabilitation, or repair of a public school facility or for the acquisition of land on which such a facility is to be constructed with part of the proceeds of such issue, “(2) the bond is issued by a State or local government within the jurisdiction of which such school is located, and “(3) the issuer designates such bond for purposes of this section. “(b) Limitation on Amount of Bonds Designated.— The maximum aggregate face amount of bonds issued during any calendar year which may be designated under subsection (a) by any issuer shall not exceed the limitation amount allocated under subsection (d) for such calendar year to such issuer. “(c) National Limitation on Amount of Bonds Designated.— There is a national qualified school construction bond limitation for each calendar year. Such limitation is— “(1) $11,000,000,000 for 2009, “(2) $11,000,000,000 for 2010, and “(3) except as provided in subsection (e), zero after 2010. “(d) Allocation of Limitation.— “(1) Allocation among states.— Except as provided in paragraph (2)(C), the limitation applicable under subsection (c) for any calendar year shall be allocated by the Secretary among the States in proportion to the respective amounts each such State is eligible to receive under section 1124 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6333) for the most recent fiscal year ending before such calendar year. The limitation amount allocated to a State under the preceding sentence shall be allocated by the State to issuers within such State. “(2) 40 percent of limitation allocated among largest school districts.— “(A) In general.— 40 percent of the limitation applicable under subsection (c) for any calendar year shall be allocated under subparagraph (B) by the Secretary among local educational agencies which are large local educational agencies for such year. “(B) Allocation formula.— The amount to be allocated under subparagraph (A) for any calendar year shall be allocated among large local educational agencies in proportion to the respective amounts each such agency received under section 1124 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6333) for the most recent fiscal year ending before such calendar year. “(C) Reduction in state allocation.— The allocation to any State under paragraph (1) shall be reduced by the aggregate amount of the allocations under this paragraph to large local educational agencies within such State. “(D) Allocation of unused limitation to state.— The amount allocated under this paragraph to a large local educational agency for any calendar year may be reallocated by such agency to the State in which such agency is located for such calendar year. Any amount reallocated to a State under the preceding sentence may be allocated as provided in paragraph (1). “(E) Large local educational agency.— For purposes of this paragraph, the term ‘large local educational agency’ means, with respect to a calendar year, any local educational agency if such agency is— “(i) among the 100 local educational agencies with the largest numbers of children aged 5 through 17 from families living below the poverty level, as determined by the Secretary using the most recent data available from the Department of Commerce that are satisfactory to the Secretary, or “(ii) 1 of not more than 25 local educational agencies (other than those described in clause (i)) that the Secretary of Education determines (based on the most recent data available satisfactory to the Secretary) are in particular need of assistance, based on a low level of resources for school construction, a high level of enrollment growth, or such other factors as the Secretary deems appropriate. “(3) Allocations to certain possessions.— The amount to be allocated under paragraph (1) to any possession of the United States other than Puerto Rico shall be the amount which would have been allocated if all allocations under paragraph (1) were made on the basis of respective populations of individuals below the poverty line (as defined by the Office of Management and Budget). In making other allocations, the amount to be allocated under paragraph (1) shall be reduced by the aggregate amount allocated under this paragraph to possessions of the United States. “(4) Allocations for indian schools.— In addition to the amounts otherwise allocated under this subsection, $200,000,000 for calendar year 2009, and $200,000,000 for calendar year 2010, shall be allocated by the Secretary of the Interior for purposes of the construction, rehabilitation, and repair of schools funded by the Bureau of Indian Affairs. In the case of amounts allocated under the preceding sentence, Indian tribal governments (as defined in section 7701(a)(40)) shall be treated as qualified issuers for purposes of this subchapter. “(e) Carryover of Unused Limitation.— If for any calendar year— “(1) the amount allocated under subsection (d) to any State, exceeds “(2) the amount of bonds issued during such year which are designated under subsection (a) pursuant to such allocation, the limitation amount under such subsection for such State for the following calendar year shall be increased by the amount of such excess. Applicability. A similar rule shall apply to the amounts allocated under subsection (d)(4).” . (b) Conforming Amendments.— (1) Paragraph (1) of section 54A(d) 26 USC 54. is amended by striking “or” at the end of subparagraph (C), by inserting “or” at the end of subparagraph (D), and by inserting after subparagraph (D) the following new subparagraph: “(E) a qualified school construction bond,” . (2) Subparagraph (C) of section 54A(d)(2) is amended by striking “and” at the end of clause (iii), by striking the period at the end of clause (iv) and inserting “, and”, and by adding at the end the following new clause: “(v) in the case of a qualified school construction bond, a purpose specified in section 54F(a)(1).” . (3) The table of sections for subpart I of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item: “Sec. 54F.  Qualified school construction bonds.”. (c) Effective Date.— The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act. SEC. 1522. EXTENSION AND EXPANSION OF QUALIFIED ZONE ACADEMY BONDS. (a) In General.— Section 54E(c)(1) 26 USC 54. is amended by striking “and 2009” and inserting “and $1,400,000,000 for 2009 and 2010”. (b) Effective Date.— The amendment made by this section shall apply to obligations issued after December 31, 2008. PART IV— BUILD AMERICA BONDS SEC. 1531. BUILD AMERICA BONDS. (a) In General.— Part IV of subchapter A of chapter 1 is amended by adding at the end the following new subpart: “Subpart J— Build America Bonds “Sec. 54AA.  Build America bonds. “SEC. 54AA. BUILD AMERICA BONDS. “(a) In General.— If a taxpayer holds a build America bond on one or more interest payment dates of the bond during any taxable year, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the credits determined under subsection (b) with respect to such dates. “(b) Amount of Credit.— The amount of the credit determined under this subsection with respect to any interest payment date for a build America bond is 35 percent of the amount of interest payable by the issuer with respect to such date . “(c) Limitation Based on Amount of Tax.— “(1) In general.— The credit allowed under subsection (a) for any taxable year shall not exceed the excess of— “(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over “(B) the sum of the credits allowable under this part (other than subpart C and this subpart). “(2) Carryover of unused credit.— If the credit allowable under subsection (a) exceeds the limitation imposed by paragraph (1) for such taxable year, such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such taxable year (determined before the application of paragraph (1) for such succeeding taxable year). “(d) Build America Bond.— “(1) In general.— For purposes of this section, the term ‘build America bond’ means any obligation (other than a private activity bond) if— “(A) the interest on such obligation would (but for this section) be excludable from gross income under section 103, “(B) such obligation is issued before January 1, 2011, and “(C) the issuer makes an irrevocable election to have this section apply. “(2) Applicable rules.— For purposes of applying paragraph (1)— “(A) for purposes of section 149(b), a build America bond shall not be treated as federally guaranteed by reason of the credit allowed under subsection (a) or section 6431, “(B) for purposes of section 148, the yield on a build America bond shall be determined without regard to the credit allowed under subsection (a), and “(C) a bond shall not be treated as a build America bond if the issue price has more than a de minimis amount (determined under rules similar to the rules of section 1273(a)(3)) of premium over the stated principal amount of the bond. “(e) Interest Payment Date.— For purposes of this section, the term ‘interest payment date’ means any date on which the holder of record of the build America bond is entitled to a payment of interest under such bond. “(f) Special Rules.— “(1) Interest on build america bonds includible in gross income for federal income tax purposes.— For purposes of this title, interest on any build America bond shall be includible in gross income. “(2) Application of certain rules.— Rules similar to the rules of subsections (f), (g), (h), and (i) of section 54A shall apply for purposes of the credit allowed under subsection (a). “(g) Special Rule for Qualified Bonds Issued Before 2011.— In the case of a qualified bond issued before January 1, 2011— “(1) Issuer allowed refundable credit.— In lieu of any credit allowed under this section with respect to such bond, the issuer of such bond shall be allowed a credit as provided in section 6431. “(2) Qualified bond.— For purposes of this subsection, the term ‘qualified bond’ means any build America bond issued as part of an issue if— “(A) 100 percent of the excess of— “(i) the available project proceeds (as defined in section 54A) of such issue, over “(ii) the amounts in a reasonably required reserve (within the meaning of section 150(a)(3)) with respect to such issue, are to be used for capital expenditures, and “(B) the issuer makes an irrevocable election to have this subsection apply. “(h) Regulations.— The Secretary may prescribe such regulations and other guidance as may be necessary or appropriate to carry out this section and section 6431.” . (b) Credit for Qualified Bonds Issued Before 2011.— Subchapter B of chapter 65 is amended by adding at the end the following new section: “SEC. 6431. CREDIT FOR QUALIFIED BONDS ALLOWED TO ISSUER. “(a) In General.— In the case of a qualified bond issued before January 1, 2011, the issuer of such bond shall be allowed a credit with respect to each interest payment under such bond which shall be payable by the Secretary as provided in subsection (b). “(b) Payment of Credit.— The Secretary shall pay (contemporaneously with each interest payment date under such bond) to the issuer of such bond (or to any person who makes such interest payments on behalf of the issuer) 35 percent of the interest payable under such bond on such date. “(c) Application of Arbitrage Rules.— For purposes of section 148, the yield on a qualified bond shall be reduced by the credit allowed under this section. “(d) Interest Payment Date.— For purposes of this subsection, the term ‘interest payment date’ means each date on which interest is payable by the issuer under the terms of the bond. “(e) Qualified Bond.— For purposes of this subsection, the term ‘qualified bond’ has the meaning given such term in section 54AA(g).” . (c) Conforming Amendments.— (1) Section 1324(b)(2) of title 31, United States Code, is amended by striking “or 6428” and inserting “6428, or 6431,”. (2) Section 54A(c)(1)(B) 26 USC 54. is amended by striking “subpart C” and inserting “subparts C and J”. (3) Sections 54(c)(2), 1397E(c)(2), and 1400N(l)(3)(B) are each amended by striking “and I” and inserting “, I, and J”. (4) Section 6211(b)(4)(A) is amended by striking “and 6428” and inserting “6428, and 6431”. (5) Section 6401(b)(1) is amended by striking “and I” and inserting “I, and J”. (6) The table of subparts for part IV of subchapter A of chapter 1 is amended by adding at the end the following new item: “subpart j. build america bonds.”. (7) The table of section for subchapter B of chapter 65 is amended by adding at the end the following new item: “Sec. 6431.  Credit for qualified bonds allowed to issuer.”. (d) Transitional Coordination With State Law.— Except as otherwise provided by a State after the date of the enactment of this Act, the interest on any build America bond (as defined in section 54AA of the Internal Revenue Code of 1986, as added by this section) and the amount of any credit determined under such section with respect to such bond shall be treated for purposes of the income tax laws of such State as being exempt from Federal income tax. (e) Effective Date.— The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act. PART V— REGULATED INVESTMENT COMPANIES ALLOWED TO PASS-THRU TAX CREDIT BOND CREDITS SEC. 1541. REGULATED INVESTMENT COMPANIES ALLOWED TO PASS-THRU TAX CREDIT BOND CREDITS. (a) In General.— Part I of subchapter M of chapter 1 is amended by inserting after section 853 the following new section: “SEC. 853A. CREDITS FROM TAX CREDIT BONDS ALLOWED TO SHAREHOLDERS. “(a) General Rule.— A regulated investment company— “(1) which holds (directly or indirectly) one or more tax credit bonds on one or more applicable dates during the taxable year, and “(2) which meets the requirements of section 852(a) for the taxable year, may elect the application of this section with respect to credits allowable to the investment company during such taxable year with respect to such bonds. “(b) Effect of Election.— If the election provided in subsection (a) is in effect for any taxable year— “(1) the regulated investment company shall not be allowed any credits to which subsection (a) applies for such taxable year, “(2) the regulated investment company shall— “(A) include in gross income (as interest) for such taxable year an amount equal to the amount that such investment company would have included in gross income with respect to such credits if this section did not apply, and “(B) increase the amount of the dividends paid deduction for such taxable year by the amount of such income, and “(3) each shareholder of such investment company shall— “(A) include in gross income an amount equal to such shareholder’s proportionate share of the interest income attributable to such credits, and “(B) be allowed the shareholder’s proportionate share of such credits against the tax imposed by this chapter. “(c) Notice to Shareholders.— For purposes of subsection (b)(3), the shareholder’s proportionate share of— “(1) credits described in subsection (a), and “(2) gross income in respect of such credits, shall not exceed the amounts so designated by the regulated investment company in a written notice mailed to its shareholders not later than 60 days after the close of its taxable year. “(d) Manner of Making Election and Notifying Shareholders.— The election provided in subsection (a) and the notice to shareholders required by subsection (c) shall be made in such manner as the Secretary may prescribe. “(e) Definitions and Special Rules.— “(1) Definitions.— For purposes of this subsection— “(A) Tax credit bond.— The term ‘tax credit bond’ means— “(i) a qualified tax credit bond (as defined in section 54A(d)), “(ii) a build America bond (as defined in section 54AA(d)), and “(iii) any bond for which a credit is allowable under subpart H of part IV of subchapter A of this chapter. “(B) Applicable date.— The term ‘applicable date’ means— “(i) in the case of a qualified tax credit bond or a bond described in subparagraph (A)(iii), any credit allowance date (as defined in section 54A(e)(1)), and “(ii) in the case of a build America bond (as defined in section 54AA(d)), any interest payment date (as defined in section 54AA(e)). “(2) Stripped tax credit bonds.— If the ownership of a tax credit bond is separated from the credit with respect to such bond, subsection (a) shall be applied by reference to the instruments evidencing the entitlement to the credit rather than the tax credit bond. “(f) Regulations, etc.— The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including methods for determining a shareholder’s proportionate share of credits.” . (b) Conforming Amendments.— (1) Section 54(l) 26 USC 54. is amended by striking paragraph (4) and by redesignating paragraphs (5) and (6) as paragraphs (4) and (5), respectively. (2) Section 54A(h) is amended to read as follows: “(h) Bonds Held by Real Estate Investment Trusts.— If any qualified tax credit bond is held by a real estate investment trust, the credit determined under subsection (a) shall be allowed to beneficiaries of such trust (and any gross income included under subsection (f) with respect to such credit shall be distributed to such beneficiaries) under procedures prescribed by the Secretary.” . (3) The table of sections for part I of subchapter M of chapter 1 is amended by inserting after the item relating to section 853 the following new item: “Sec. 853A.  Credits from tax credit bonds allowed to shareholders.”. (c) Effective Date.— The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act. Subtitle G— Other Provisions SEC. 1601. APPLICATION OF CERTAIN LABOR STANDARDS TO PROJECTS FINANCED WITH CERTAIN TAX-FAVORED BONDS.   Subchapter IV of chapter 31 of the title 40, United States Code, shall apply to projects financed with the proceeds of— (1) any new clean renewable energy bond (as defined in section 54C of the Internal Revenue Code of 1986) issued after the date of the enactment of this Act, (2) any qualified energy conservation bond (as defined in section 54D of the Internal Revenue Code of 1986) issued after the date of the enactment of this Act, (3) any qualified zone academy bond (as defined in section 54E of the Internal Revenue Code of 1986) issued after the date of the enactment of this Act, (4) any qualified school construction bond (as defined in section 54F of the Internal Revenue Code of 1986), and (5) any recovery zone economic development bond (as defined in section 1400U–2 of the Internal Revenue Code of 1986). SEC. 1602. GRANTS TO STATES FOR LOW-INCOME HOUSING PROJECTS IN LIEU OF LOW-INCOME HOUSING CREDIT ALLOCATIONS FOR 2009. (a) In General.— The Secretary of the Treasury shall make a grant to the housing credit agency of each State in an amount equal to such State’s low-income housing grant election amount. (b) Low-Income Housing Grant Election Amount.— For purposes of this section, the term “low-income housing grant election amount” means, with respect to any State, such amount as the State may elect which does not exceed 85 percent of the product of— (1) the sum of— (A) 100 percent of the State housing credit ceiling for 2009 which is attributable to amounts described in clauses (i) and (iii) of section 42(h)(3)(C) of the Internal Revenue Code of 1986, and (B) 40 percent of the State housing credit ceiling for 2009 which is attributable to amounts described in clauses (ii) and (iv) of such section, multiplied by (2) 10. (c) Subawards for Low-Income Buildings.— (1) In general.— A State housing credit agency receiving a grant under this section shall use such grant to make subawards to finance the construction or acquisition and rehabilitation of qualified low-income buildings. A subaward under this section may be made to finance a qualified low-income building with or without an allocation under section 42 of the Internal Revenue Code of 1986, except that a State housing credit agency may make subawards to finance qualified low-income buildings without an allocation only if it makes a determination that such use will increase the total funds available to the State to build and rehabilitate affordable housing. Procedures. In complying with such determination requirement, a State housing credit agency shall establish a process in which applicants that are allocated credits are required to demonstrate good faith efforts to obtain investment commitments for such credits before the agency makes such subawards. (2) Subawards subject to same requirements as low-income housing credit allocations.— Any such subaward with respect to any qualified low-income building shall be made in the same manner and shall be subject to the same limitations (including rent, income, and use restrictions on such building) as an allocation of housing credit dollar amount allocated by such State housing credit agency under section 42 of the Internal Revenue Code of 1986, except that such subawards shall not be limited by, or otherwise affect (except as provided in subsection (h)(3)(J) of such section), the State housing credit ceiling applicable to such agency. (3) Compliance and asset management.— The State housing credit agency shall perform asset management functions to ensure compliance with section 42 of the Internal Revenue Code of 1986 and the long-term viability of buildings funded by any subaward under this section. The State housing credit agency may collect reasonable fees from a subaward recipient to cover expenses associated with the performance of its duties under this paragraph. The State housing credit agency may retain an agent or other private contractor to satisfy the requirements of this paragraph. (4) Recapture.— The State housing credit agency shall impose conditions or restrictions, including a requirement providing for recapture, on any subaward under this section so as to assure that the building with respect to which such subaward is made remains a qualified low-income building during the compliance period. Any such recapture shall be payable to the Secretary of the Treasury for deposit in the general fund of the Treasury and may be enforced by means of liens or such other methods as the Secretary of the Treasury determines appropriate. (d) Return of Unused Grant Funds.— Any grant funds not used to make subawards under this section before January 1, 2011, shall be returned to the Secretary of the Treasury on such date. Any subawards returned to the State housing credit agency on or after such date shall be promptly returned to the Secretary of the Treasury. Any amounts returned to the Secretary of the Treasury under this subsection shall be deposited in the general fund of the Treasury. (e) Definitions.— Any term used in this section which is also used in section 42 of the Internal Revenue Code of 1986 shall have the same meaning for purposes of this section as when used in such section 42. Any reference in this section to the Secretary of the Treasury shall be treated as including the Secretary’s delegate. (f) Appropriations.— There is hereby appropriated to the Secretary of the Treasury such sums as may be necessary to carry out this section. SEC. 1603. GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF TAX CREDITS. (a) In General.— Upon application, the Secretary of the Treasury shall, subject to the requirements of this section, provide a grant to each person who places in service specified energy property to reimburse such person for a portion of the expense of such property as provided in subsection (b). No grant shall be made under this section with respect to any property unless such property— (1) is placed in service during 2009 or 2010, or (2) is placed in service after 2010 and before the credit termination date with respect to such property, but only if the construction of such property began during 2009 or 2010. (b) Grant Amount.— (1) In general.— The amount of the grant under subsection (a) with respect to any specified energy property shall be the applicable percentage of the basis of such property. (2) Applicable percentage.— For purposes of paragraph (1), the term “applicable percentage” means— (A) 30 percent in the case of any property described in paragraphs (1) through (4) of subsection (d), and (B) 10 percent in the case of any other property. (3) Dollar limitations.— In the case of property described in paragraph (2), (6), or (7) of subsection (d), the amount of any grant under this section with respect to such property shall not exceed the limitation described in section 48(c)(1)(B), 48(c)(2)(B), or 48(c)(3)(B) of the Internal Revenue Code of 1986, respectively, with respect to such property. (c) Time for Payment of Grant.— The Secretary of the Treasury shall make payment of any grant under subsection (a) during the 60-day period beginning on the later of— (1) the date of the application for such grant, or (2) the date the specified energy property for which the grant is being made is placed in service. (d) Specified Energy Property.— For purposes of this section, the term “specified energy property” means any of the following: (1) Qualified facilities.— Any qualified property (as defined in section 48(a)(5)(D) of the Internal Revenue Code of 1986) which is part of a qualified facility (within the meaning of section 45 of such Code) described in paragraph (1), (2), (3), (4), (6), (7), (9), or (11) of section 45(d) of such Code. (2) Qualified fuel cell property.— Any qualified fuel cell property (as defined in section 48(c)(1) of such Code). (3) Solar property.— Any property described in clause (i) or (ii) of section 48(a)(3)(A) of such Code. (4) Qualified small wind energy property.— Any qualified small wind energy property (as defined in section 48(c)(4) of such Code). (5) Geothermal property.— Any property described in clause (iii) of section 48(a)(3)(A) of such Code. (6) Qualified microturbine property.— Any qualified microturbine property (as defined in section 48(c)(2) of such Code). (7) Combined heat and power system property.— Any combined heat and power system property (as defined in section 48(c)(3) of such Code). (8) Geothermal heat pump property.— Any property described in clause (vii) of section 48(a)(3)(A) of such Code. Such term shall not include any property unless depreciation (or amortization in lieu of depreciation) is allowable with respect to such property. (e) Credit Termination Date.— For purposes of this section, the term “credit termination date” means— (1) in the case of any specified energy property which is part of a facility described in paragraph (1) of section 45(d) of the Internal Revenue Code of 1986, January 1, 2013, (2) in the case of any specified energy property which is part of a facility described in paragraph (2), (3), (4), (6), (7), (9), or (11) of section 45(d) of such Code, January 1, 2014, and (3) in the case of any specified energy property described in section 48 of such Code, January 1, 2017. In the case Applicability. of any property which is described in paragraph (3) and also in another paragraph of this subsection, paragraph (3) shall apply with respect to such property. (f) Application of Certain Rules.— In making grants under this section, the Secretary of the Treasury shall apply rules similar to the rules of section 50 of the Internal Revenue Code of 1986. In applying such rules, if the property is disposed of, or otherwise ceases to be specified energy property, the Secretary of the Treasury shall provide for the recapture of the appropriate percentage of the grant amount in such manner as the Secretary of the Treasury determines appropriate. (g) Exception for Certain Non-Taxpayers.— The Secretary of the Treasury shall not make any grant under this section to— (1) any Federal, State, or local government (or any political subdivision, agency, or instrumentality thereof), (2) any organization described in section 501(c) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code, (3) any entity referred to in paragraph (4) of section 54(j) of such Code, or (4) any partnership or other pass-thru entity any partner (or other holder of an equity or profits interest) of which is described in paragraph (1), (2) or (3). (h) Definitions.— Terms used in this section which are also used in section 45 or 48 of the Internal Revenue Code of 1986 shall have the same meaning for purposes of this section as when used in such section 45 or 48. Any reference in this section to the Secretary of the Treasury shall be treated as including the Secretary’s delegate. (i) Appropriations.— There is hereby appropriated to the Secretary of the Treasury such sums as may be necessary to carry out this section. (j) Termination.— The Deadline. Secretary of the Treasury shall not make any grant to any person under this section unless the application of such person for such grant is received before October 1, 2011. SEC. 1604. INCREASE IN PUBLIC DEBT LIMIT.   Subsection (b) of section 3101 of title 31, United States Code, is amended by striking out the dollar limitation contained in such subsection and inserting “$12,104,000,000,000”. Subtitle H— Prohibition on Collection of Certain Payments Made Under the Continued Dumping and Subsidy Offset Act of 2000 SEC. 1701. PROHIBITION ON COLLECTION OF CERTAIN PAYMENTS MADE UNDER THE CONTINUED DUMPING AND SUBSIDY OFFSET ACT OF 2000. (a) In General.— Notwithstanding any other provision of law, neither the Secretary of Homeland Security nor any other person may— (1) require repayment of, or attempt in any other way to recoup, any payments described in subsection (b); or (2) offset any past, current, or future distributions of antidumping or countervailing duties assessed with respect to imports from countries that are not parties to the North American Free Trade Agreement in an attempt to recoup any payments described in subsection (b). (b) Payments Described.— Payments described in this subsection are payments of antidumping or countervailing duties made pursuant to the Continued Dumping and Subsidy Offset Act of 2000 (section 754 of the Tariff Act of 1930 (19 U.S.C. 1675c; repealed by subtitle F of title VII of the Deficit Reduction Act of 2005 (Public Law 109–171; 120 Stat. 154))) that were— (1) assessed and paid on imports of goods from countries that are parties to the North American Free Trade Agreement; and (2) distributed on or after January 1, 2001, and before January 1, 2006. (c) Payment of Funds Collected or Withheld.— Not Deadline. later than the date that is 60 days after the date of the enactment of this Act, the Secretary of Homeland Security shall— (1) refund any repayments, or any other recoupment, of payments described in subsection (b); and (2) fully distribute any antidumping or countervailing duties that the U.S. Customs and Border Protection is withholding as an offset as described in subsection (a)(2). (d) Limitation.— Nothing in this section shall be construed to prevent the Secretary of Homeland Security, or any other person, from requiring repayment of, or attempting to otherwise recoup, any payments described in subsection (b) as a result of— (1) a finding of false statements or other misconduct by a recipient of such a payment; or (2) the reliquidation of an entry with respect to which such a payment was made. Subtitle I— Trade Adjustment Assistance SEC. 1800. SHORT TITLE.   This subtitle may be cited as the “Trade and Globalization Adjustment Assistance Act of 2009”. PART I— TRADE ADJUSTMENT ASSISTANCE FOR WORKERS Subpart A— Trade Adjustment Assistance for Service Sector Workers SEC. 1801. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE TO SERVICE SECTOR AND PUBLIC AGENCY WORKERS; SHIFTS IN PRODUCTION. (a) Definitions.— Section 247 of the Trade Act of 1974 (19 U.S.C. 2319) is amended— (1) in paragraph (1)— (A) by striking “or appropriate subdivision of a firm”; and (B) by striking “or subdivision”; (2) in paragraph (2), by striking “employment—” and all that follows and inserting “employment, has been totally or partially separated from such employment.”; (3) by inserting after paragraph (2) the following: “(3) Subject to section 222(d)(5), the term ‘firm’ means— “(A) a firm, including an agricultural firm, service sector firm, or public agency; or “(B) an appropriate subdivision thereof.” ; (4) by inserting after paragraph (6) the following: “(7) The term ‘public agency’ means a department or agency of a State or local government or of the Federal Government, or a subdivision thereof.” ; (5) in paragraph (11), by striking “, or in a subdivision of which,”; and (6) by adding at the end the following: “(18) The term ‘service sector firm’ means a firm engaged in the business of supplying services.” . (b) Group Eligibility Requirements.— Section 222 of the Trade Act of 1974 (19 U.S.C. 2272) is amended— (1) in subsection (a)(2)— (A) by amending subparagraph (A)(ii) to read as follows: “(ii) (I) imports of articles or services like or directly competitive with articles produced or services supplied by such firm have increased; “(II) imports of articles like or directly competitive with articles— “(aa) into which one or more component parts produced by such firm are directly incorporated, or “(bb) which are produced directly using services supplied by such firm, have increased; or “(III) imports of articles directly incorporating one or more component parts produced outside the United States that are like or directly competitive with imports of articles incorporating one or more component parts produced by such firm have increased; and” ; and (B) by amending subparagraph (B) to read as follows: “(B) (i) (I) there has been a shift by such workers’ firm to a foreign country in the production of articles or the supply of services like or directly competitive with articles which are produced or services which are supplied by such firm; or “(II) such workers’ firm has acquired from a foreign country articles or services that are like or directly competitive with articles which are produced or services which are supplied by such firm; and “(ii) the shift described in clause (i)(I) or the acquisition of articles or services described in clause (i)(II) contributed importantly to such workers’ separation or threat of separation.” ; (2) by redesignating subsections (b) and (c) as subsections (c) and (d), respectively; and (3) by inserting after subsection (a) the following: “(b) Adversely Affected Workers in Public Agencies.— A group Certification. of workers in a public agency shall be certified by the Secretary as eligible to apply for adjustment assistance under this chapter pursuant to a petition filed under section 221 if the Secretary determines that— “(1) a significant number or proportion of the workers in the public agency have become totally or partially separated, or are threatened to become totally or partially separated; “(2) the public agency has acquired from a foreign country services like or directly competitive with services which are supplied by such agency; and “(3) the acquisition of services described in paragraph (2) contributed importantly to such workers’ separation or threat of separation.” . (c) Basis for Secretary’s Determinations.— Section 222 of the Trade Act of 1974 (19 U.S.C. 2272), as amended, is further amended by adding at the end the following: “(e) Basis for Secretary’s Determinations.— “(1) In general.— The Secretary shall, in determining whether to certify a group of workers under section 223, obtain from the workers’ firm, or a customer of the workers’ firm, information the Secretary determines to be necessary to make the certification, through questionnaires and in such other manner as the Secretary determines appropriate. “(2) Additional information.— The Secretary may seek additional information to determine whether to certify a group of workers under subsection (a), (b), or (c)— “(A) by contacting— “(i) officials or employees of the workers’ firm; “(ii) officials of customers of the workers’ firm; “(iii) officials of certified or recognized unions or other duly authorized representatives of the group of workers; or “(iv) one-stop operators or one-stop partners (as defined in section 101 of the Workforce Investment Act of 1998 (29 U.S.C. 2801)); or “(B) by using other available sources of information. “(3) Verification of information.— “(A) Certification.— The Secretary shall require a firm or customer to certify— “(i) all information obtained under paragraph (1) from the firm or customer (as the case may be) through questionnaires; and “(ii) all other information obtained under paragraph (1) from the firm or customer (as the case may be) on which the Secretary relies in making a determination under section 223, unless the Secretary has a reasonable basis for determining that such information is accurate and complete without being certified. “(B) Use of subpoenas.— The Secretary Deadline. shall require the workers’ firm or a customer of the workers’ firm to provide information requested by the Secretary under paragraph (1) by subpoena pursuant to section 249 if the firm or customer (as the case may be) fails to provide the information within 20 days after the date of the Secretary’s request, unless the firm or customer (as the case may be) demonstrates to the satisfaction of the Secretary that the firm or customer (as the case may be) will provide the information within a reasonable period of time. “(C) Protection of confidential information.— The Secretary may not release information obtained under paragraph (1) that the Secretary considers to be confidential business information unless the firm or customer (as the case may be) submitting the confidential business information had notice, at the time of submission, that the information would be released by the Secretary, or the firm or customer (as the case may be) subsequently consents to the release of the information. Nothing in this subparagraph shall be construed to prohibit the Secretary from providing such confidential business information to a court in camera or to another party under a protective order issued by a court.” . (d) Penalties.— Section 244 of the Trade Act of 1974 (19 U.S.C. 2316) is amended to read as follows: “SEC. 244. PENALTIES.   “Any person who— “(1) makes a false statement of a material fact knowing it to be false, or knowingly fails to disclose a material fact, for the purpose of obtaining or increasing for that person or for any other person any payment authorized to be furnished under this chapter or pursuant to an agreement under section 239, or “(2) makes a false statement of a material fact knowing it to be false, or knowingly fails to disclose a material fact, when providing information to the Secretary during an investigation of a petition under section 221, shall be imprisoned for not more than one year, or fined under title 18, United States Code, or both.” . (e) Conforming Amendments.— (1) Section 221(a) of the Trade Act of 1974 (19 U.S.C. 2271(a)) is amended— (A) in paragraph (1)— (i) in the matter preceding subparagraph (A)— (I) by striking “Secretary” and inserting “Secretary of Labor”; and (II) by striking “or subdivision” and inserting “(as defined in section 247)”; and (ii) in subparagraph (A), by striking “(including workers in an agricultural firm or subdivision of any agricultural firm)”; (B) in paragraph (2)(A), by striking “rapid response assistance” and inserting “rapid response activities”; and (C) in paragraph (3), by inserting “and on the website of the Department of Labor” after “Federal Register”. (2) Section 222 of the Trade Act of 1974 (19 U.S.C. 2272), as amended, is further amended— (A) by striking “(including workers in any agricultural firm or subdivision of an agricultural firm)” each place it appears; (B) in subsection (a)— (i) in paragraph (1), by striking “, or an appropriate subdivision of the firm,”; and (ii) in paragraph (2), by striking “or subdivision” each place it appears; (C) in subsection (c) (as redesignated)— (i) in paragraph (2)— (I) by striking “(or subdivision)” each place it appears; (II) by inserting “or service” after “the article”; and (III) by striking “(c) (3)” and inserting “(d) (3)”; and (ii) in paragraph (3), by striking “(or subdivision)” each place it appears; and (D) in subsection (d) (as redesignated)— (i) by striking “For purposes” and inserting “Definitions.—For purposes”; (ii) in paragraph (2), by striking “, or appropriate subdivision of a firm,” each place it appears; (iii) by amending paragraph (3) to read as follows: “(3) Downstream producer.— “(A) In general.— The term ‘downstream producer’ means a firm that performs additional, value-added production processes or services directly for another firm for articles or services with respect to which a group of workers in such other firm has been certified under subsection (a). “(B) Value-added production processes or services.— For purposes of subparagraph (A), value-added production processes or services include final assembly, finishing, testing, packaging, or maintenance or transportation services.” ; (iv) in paragraph (4)— (I) by striking “(or subdivision)”; and (II) by inserting “, or services, used in the production of articles or in the supply of services, as the case may be,” after “for articles”; and (v) by adding at the end the following: “(5) Reference to firm.— For purposes of subsection (a), the term ‘firm’ does not include a public agency.” . (3) Section 231(a)(2) of the Trade Act of 1974 (19 U.S.C. 2291(a)(2)) is amended— (A) in the matter preceding subparagraph (A), by striking “or subdivision of a firm”; and (B) in subparagraph (C), by striking “or subdivision”. SEC. 1802. SEPARATE BASIS FOR CERTIFICATION.   Section 222 of the Trade Act of 1974 (19 U.S.C. 2272), as amended, is further amended by adding at the end the following: “(f) Firms Identified by the International Trade Commission.— Notwithstanding any other provision of this chapter, a group of workers covered by a petition filed under section 221 shall be certified under subsection (a) as eligible to apply for adjustment assistance under this chapter if— “(1) the workers’ firm is publicly identified by name by the International Trade Commission as a member of a domestic industry in an investigation resulting in— “(A) an affirmative determination of serious injury or threat thereof under section 202(b)(1); “(B) an affirmative determination of market disruption or threat thereof under section 421(b)(1); or “(C) an affirmative final determination of material injury or threat thereof under section 705(b)(1)(A) or 735(b)(1)(A) of the Tariff Act of 1930 (19 U.S.C. 1671d(b)(1)(A) and 1673d(b)(1)(A)); “(2) the petition is filed during the one-year period beginning on the date on which— “(A) a summary of the report submitted to the President by the International Trade Commission under section 202(f)(1) with respect to the affirmative determination described in paragraph (1)(A) is published in the Federal Register under section 202(f)(3); or “(B) notice of an affirmative determination described in subparagraph (B) or (C) of paragraph (1) is published in the Federal Register; and “(3) the workers have become totally or partially separated from the workers’ firm within— “(A) the one-year period described in paragraph (2); or “(B) notwithstanding section 223(b), the one-year period preceding the one-year period described in paragraph (2).” . SEC. 1803. DETERMINATIONS BY SECRETARY OF LABOR.   Section 223 of the Trade Act of 1974 (19 U.S.C. 2273) is amended— (1) in subsection (b), by striking “or appropriate subdivision of the firm before his application” and all that follows and inserting “before the worker’s application under section 231 occurred more than one year before the date of the petition on which such certification was granted.”; (2) in subsection (c), by striking “together with his reasons” and inserting “and on the website of the Department of Labor, together with the Secretary’s reasons”; (3) in subsection (d)— (A) by striking “or subdivision of the firm” and all that follows through “he shall” and inserting “, that total or partial separations from such firm are no longer attributable to the conditions specified in section 222, the Secretary shall”; and (B) by striking “together with his reasons” and inserting “and on the website of the Department of Labor, together with the Secretary’s reasons”; and (4) by adding at the end the following: “(e) Standards for Investigations and Determinations.— “(1) In general.— The Secretary Criteria. shall establish standards, including data requirements, for investigations of petitions filed under section 221 and criteria for making determinations under subsection (a). “(2) Consultations.— Not less Deadline. than 90 days before issuing a final rule with respect to the standards required under paragraph (1), the Secretary shall consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives with respect to such rule.” . SEC. 1804. MONITORING AND REPORTING RELATING TO SERVICE SECTOR. (a) In General.— Section 282 of the Trade Act of 1974 (19 U.S.C. 2393) is amended— (1) in the heading, by striking “system” and inserting “and data collection”; (2) in the first sentence— (A) by striking “The Secretary” and inserting “(a) Monitoring Programs.—The Secretary”; (B) by inserting “and services” after “imports of articles”; (C) by inserting “and domestic supply of services” after “domestic production”; (D) by inserting “or supplying services” after “producing articles”; and (E) by inserting “, or supply of services,” after “changes in production”; and (3) by adding at the end the following: “(b) Collection of Data and Reports on Service Sector.— “(1) Secretary of labor.— Not later System. than 90 days after the date of the enactment of this subsection, the Secretary of Labor shall implement a system to collect data on adversely affected workers employed in the service sector that includes the number of workers by State and industry, and by the cause of the dislocation of each worker, as identified in the certification. “(2) Secretary of commerce.— Not later than 1 year after such date of enactment, the Secretary of Commerce shall, in consultation with the Secretary of Labor, conduct a study and submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report on ways to improve the timeliness and coverage of data on trade in services, including methods to identify increased imports due to the relocation of United States firms to foreign countries, and increased imports due to United States firms acquiring services from firms in foreign countries.” . (b) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by striking the item relating to section 282 and inserting the following: “Sec. 282.  Trade monitoring and data collection.”. (c) Effective Date.— The amendments made by this section shall take effect on the date of the enactment of this Act. Subpart B— Industry Notifications Following Certain Affirmative Determinations SEC. 1811. NOTIFICATIONS FOLLOWING CERTAIN AFFIRMATIVE DETERMINATIONS. (a) In General.— Section 224 of the Trade Act of 1974 (19 U.S.C. 2274) is amended— (1) by amending the heading to read as follows: “SEC. 224. STUDY AND NOTIFICATIONS REGARDING CERTAIN AFFIRMATIVE DETERMINATIONS; INDUSTRY NOTIFICATION OF ASSISTANCE.” ; (2) in subsection (a), by striking “Whenever” and inserting “Study of Domestic Industry.—Whenever”; (3) in subsection (b)— (A) by striking “The report” and inserting “Report by the Secretary.—The report”; and (B) by inserting “and on the website of the Department of Labor” after “Federal Register”; and (4) by adding at the end the following: “(c) Notifications Following Affirmative Global Safeguard Determinations.— Upon making an affirmative determination under section 202(b)(1), the Commission shall promptly notify the Secretary of Labor and the Secretary of Commerce and, in the case of a determination with respect to an agricultural commodity, the Secretary of Agriculture, of the determination. “(d) Notifications Following Affirmative Bilateral or Plurilateral Safeguard Determinations.— “(1) Notifications of determinations of market disruption.— Upon making an affirmative determination under section 421(b)(1), the Commission shall promptly notify the Secretary of Labor and the Secretary of Commerce and, in the case of a determination with respect to an agricultural commodity, the Secretary of Agriculture, of the determination. “(2) Notifications regarding trade agreement safeguards.— Upon making an affirmative determination in a proceeding initiated under an applicable safeguard provision (other than a provision described in paragraph (3)) that is enacted to implement a trade agreement to which the United States is a party, the Commission shall promptly notify the Secretary of Labor and the Secretary of Commerce and, in the case of a determination with respect to an agricultural commodity, the Secretary of Agriculture, of the determination. “(3) Notifications regarding textile and apparel safeguards.— Upon making an affirmative determination in a proceeding initiated under any safeguard provision relating to textile and apparel articles that is enacted to implement a trade agreement to which the United States is a party, the President shall promptly notify the Secretary of Labor and the Secretary of Commerce of the determination. “(e) Notifications Following Certain Affirmative Determinations Under Title Vii of the Tariff Act of 1930.— Upon making an affirmative determination under section 705(b)(1)(A) or 735(b)(1)(A) of the Tariff Act of 1930 (19 U.S.C. 1671d(b)(1)(A) and 1673d(b)(1)(A)), the Commission shall promptly notify the Secretary of Labor and the Secretary of Commerce and, in the case of a determination with respect to an agricultural commodity, the Secretary of Agriculture, of the determination. “(f) Industry Notification of Assistance.— Upon receiving a notification of a determination under subsection (c), (d), or (e) with respect to a domestic industry— “(1) the Secretary of Labor shall— “(A) notify the representatives of the domestic industry affected by the determination, firms publicly identified by name during the course of the proceeding relating to the determination, and any certified or recognized union or, to the extent practicable, other duly authorized representative of workers employed by such representatives of the domestic industry, of— “(i) the allowances, training, employment services, and other benefits available under this chapter; “(ii) the manner in which to file a petition and apply for such benefits; and “(iii) the availability of assistance in filing such petitions; “(B) notify the Governor of each State in which one or more firms in the industry described in subparagraph (A) are located of the Commission’s determination and the identity of the firms; and “(C) upon request, provide any assistance that is necessary to file a petition under section 221; “(2) the Secretary of Commerce shall— “(A) notify the representatives of the domestic industry affected by the determination and any firms publicly identified by name during the course of the proceeding relating to the determination of— “(i) the benefits available under chapter 3; “(ii) the manner in which to file a petition and apply for such benefits; and “(iii) the availability of assistance in filing such petitions; and “(B) upon request, provide any assistance that is necessary to file a petition under section 251; and “(3) in the case of an affirmative determination based upon imports of an agricultural commodity, the Secretary of Agriculture shall— “(A) notify representatives of the domestic industry affected by the determination and any agricultural commodity producers publicly identified by name during the course of the proceeding relating to the determination of— “(i) the benefits available under chapter 6; “(ii) the manner in which to file a petition and apply for such benefits; and “(iii) the availability of assistance in filing such petitions; and “(B) upon request, provide any assistance that is necessary to file a petition under section 292. “(g) Representatives of the Domestic Industry.— For purposes of subsection (f), the term ‘representatives of the domestic industry’ means the persons that petitioned for relief in connection with— “(1) a proceeding under section 202 or 421 of this Act; “(2) a proceeding under section 702(b) or 732(b) of the Tariff Act of 1930 (19 U.S.C. 1671d(b) and 1673d(b)); or “(3) any safeguard investigation described in subsection (d)(2) or (d)(3).” . (b) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by striking the item relating to section 224 and inserting the following: “Sec. 224.  Study and notifications regarding certain affirmative determinations; industry notification of assistance.”. SEC. 1812. NOTIFICATION TO SECRETARY OF COMMERCE.   Section 225 of the Trade Act of 1974 (19 U.S.C. 2275) is amended by adding at the end the following: “(c) Upon issuing a certification under section 223, the Secretary shall notify the Secretary of Commerce of the identity of each firm covered by the certification.” . Subpart C— Program Benefits SEC. 1821. QUALIFYING REQUIREMENTS FOR WORKERS. (a) In General.— Section 231(a)(5)(A)(ii) of the Trade Act of 1974 (19 U.S.C. 2291 (a)(5)(A)(ii)) is amended— (1) by striking subclauses (I) and (II) and inserting the following: “(I) in the case of a worker whose most recent total separation from adversely affected employment that meets the requirements of paragraphs (1) and (2) occurs after the date on which the Secretary issues a certification covering the worker, the last day of the 26th week after such total separation, “(II) in the case of a worker whose most recent total separation from adversely affected employment that meets the requirements of paragraphs (1) and (2) occurs before the date on which the Secretary issues a certification covering the worker, the last day of the 26th week after the date of such certification,” ; (2) in subclause (III)— (A) by striking “later of the dates specified in subclause (I) or (II)” and inserting “date specified in subclause (I) or (II), as the case may be”; and (B) by striking “or” at the end; (3) by redesignating subclause (IV) as subclause (V); and (4) by inserting after subclause (III) the following: “(IV) in the case of a worker who fails to enroll by the date required by subclause (I), (II), or (III), as the case may be, due to the failure to provide the worker with timely information regarding the date specified in such subclause, the last day of a period determined by the Secretary, or” . (b) Waivers of Training Requirements.— Section 231(c) of the Trade Act of 1974 (19 U.S.C. 2291(c)) is amended— (1) in paragraph (1)(B)— (A) by striking “The worker possesses” and inserting the following: “(i) In general.— The worker possesses” ; and (B) by adding at the end the following: “(ii) Marketable skills defined.— For purposes of clause (i), the term ‘marketable skills’ may include the possession of a postgraduate degree from an institution of higher education (as defined in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002)) or an equivalent institution, or the possession of an equivalent postgraduate certification in a specialized field.” ; (2) in paragraph (2)(A), by striking “A waiver” and inserting “Except as provided in paragraph (3)(B), a waiver”; and (3) in paragraph (3)— (A) in subparagraph (A), by striking “Pursuant to an agreement under section 239, the Secretary may authorize a” and inserting “An agreement under section 239 shall authorize a”; (B) by redesignating subparagraph (B) as subparagraph (C); and (C) by inserting after subparagraph (A) the following: “(B) Review of waivers.— An agreement Deadlines. under section 239 shall require a cooperating State to review each waiver issued by the State under subparagraph (A), (B), (D), (E), or (F) of paragraph (1)— “(i) 3 months after the date on which the State issues the waiver; and “(ii) on a monthly basis thereafter.” . (c) Conforming Amendments.— (1) Section 231 of the Trade Act of 1974 (19 U.S.C. 2291), as amended, is further amended— (A) in subsection (a), in the matter preceding paragraph (1), by striking “more than 60 days” and all that follows through “section 221” and inserting “on or after the date of such certification”; and (B) in subsection (b)— (i) by striking paragraph (2); and (ii) in paragraph (1)— (I) by striking “(1)”; (II) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively; (III) by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively; and (IV) by redesignating subclauses (I) and (II) as clauses (i) and (ii), respectively. (2) Section 233 of the Trade Act of 1974 (19 U.S.C. 2293) is amended— (A) by striking subsection (b); and (B) by redesignating subsections (c) through (g) as subsections (b) through (f), respectively. SEC. 1822. WEEKLY AMOUNTS.   Section 232 of the Trade Act of 1974 (19 U.S.C. 2292) is amended— (1) in subsection (a)— (A) by striking “subsections (b) and (c)” and inserting “subsections (b), (c), and (d)”; (B) by striking “total unemployment” the first place it appears and inserting “unemployment”; and (C) in paragraph (2), by inserting before the period the following: “, except that in the case of an adversely affected worker who is participating in training under this chapter, such income shall not include earnings from work for such week that are equal to or less than the most recent weekly benefit amount of the unemployment insurance payable to the worker for a week of total unemployment preceding the worker’s first exhaustion of unemployment insurance (as determined for purposes of section 231(a)(3)(B))”; and (2) by adding at the end the following: “(d) Election of Trade Readjustment Allowance or Unemployment Insurance.— Notwithstanding section 231(a)(3)(B), an adversely affected worker may elect to receive a trade readjustment allowance instead of unemployment insurance during any week with respect to which the worker— “(1) is entitled to receive unemployment insurance as a result of the establishment by the worker of a new benefit year under State law, based in whole or in part upon part-time or short-term employment in which the worker engaged after the worker’s most recent total separation from adversely affected employment; and “(2) is otherwise entitled to a trade readjustment allowance.” . SEC. 1823. LIMITATIONS ON TRADE READJUSTMENT ALLOWANCES; ALLOWANCES FOR EXTENDED TRAINING AND BREAKS IN TRAINING.   Section 233(a) of the Trade Act of 1974 (19 U.S.C. 2293(a)) is amended— (1) in paragraph (2), by inserting “under paragraph (1)” after “trade readjustment allowance”; and (2) in paragraph (3)— (A) in the matter preceding subparagraph (A)— (i) by striking “training approved for him” and inserting “a training program approved for the worker”; (ii) by striking “52 additional weeks” and inserting “78 additional weeks”; and (iii) by striking “52-week” and inserting “91-week”; and (B) in the matter following subparagraph (B), by striking “52-week” and inserting “91-week”. SEC. 1824. SPECIAL RULES FOR CALCULATION OF ELIGIBILITY PERIOD.   Section 233 of the Trade Act of 1974 (19 U.S.C. 2293), as amended, is further amended by adding at the end the following: “(g) Special Rule for Calculating Separation.— Notwithstanding any other provision of this chapter, any period during which a judicial or administrative appeal is pending with respect to the denial by the Secretary of a petition under section 223 shall not be counted for purposes of calculating the period of separation under subsection (a)(2). “(h) Special Rule for Justifiable Cause.— If the Secretary determines that there is justifiable cause, the Secretary may extend the period during which trade readjustment allowances are payable to an adversely affected worker under paragraphs (2) and (3) of subsection (a) (but not the maximum amounts of such allowances that are payable under this section). “(i) Special Rule With Respect to Military Service.— “(1) In general.— Notwithstanding any Waiver authority. other provision of this chapter, the Secretary may waive any requirement of this chapter that the Secretary determines is necessary to ensure that an adversely affected worker who is a member of a reserve component of the Armed Forces and serves a period of duty described in paragraph (2) is eligible to receive a trade readjustment allowance, training, and other benefits under this chapter in the same manner and to the same extent as if the worker had not served the period of duty. “(2) Period of duty described.— An adversely affected worker serves a period of duty described in this paragraph if, before completing training under section 236, the worker— “(A) serves on active duty for a period of more than 30 days under a call or order to active duty of more than 30 days; or “(B) in the case of a member of the Army National Guard of the United States or Air National Guard of the United States, performs full-time National Guard duty under section 502(f) of title 32, United States Code, for 30 consecutive days or more when authorized by the President or the Secretary of Defense for the purpose of responding to a national emergency declared by the President and supported by Federal funds.” . SEC. 1825. APPLICATION OF STATE LAWS AND REGULATIONS ON GOOD CAUSE FOR WAIVER OF TIME LIMITS OR LATE FILING OF CLAIMS.   Section 234 of the Trade Act of 1974 (19 U.S.C. 2294) is amended— (1) by striking “Except where inconsistent” and inserting “(a) In General.—Except where inconsistent”; and (2) by adding at the end the following: “(b) Special Rule With Respect to State Laws and Regulations on Good Cause for Waiver of Time Limits or Late Filing of Claims.— Any law, Applicability. regulation, policy, or practice of a cooperating State that allows for a waiver for good cause of any time limitation relating to the administration of the State unemployment insurance law shall, in the administration of the program under this chapter by the State, apply to any time limitation with respect to an application for a trade readjustment allowance or enrollment in training under this chapter.” . SEC. 1826. EMPLOYMENT AND CASE MANAGEMENT SERVICES. (a) In General.— Section 235 of the Trade Act of 1974 (19 U.S.C. 2295) is amended to read as follows: “SEC. 235. EMPLOYMENT AND CASE MANAGEMENT SERVICES.   “The Secretary shall make available, directly or through agreements with States under section 239, to adversely affected workers and adversely affected incumbent workers covered by a certification under subchapter A of this chapter the following employment and case management services: “(1) Comprehensive and specialized assessment of skill levels and service needs, including through— “(A) diagnostic testing and use of other assessment tools; and “(B) in-depth interviewing and evaluation to identify employment barriers and appropriate employment goals. “(2) Development of an individual employment plan to identify employment goals and objectives, and appropriate training to achieve those goals and objectives. “(3) Information on training available in local and regional areas, information on individual counseling to determine which training is suitable training, and information on how to apply for such training. “(4) Information on how to apply for financial aid, including referring workers to educational opportunity centers described in section 402F of the Higher Education Act of 1965 (20 U.S.C. 1070a–16), where applicable, and notifying workers that the workers may request financial aid administrators at institutions of higher education (as defined in section 102 of such Act (20 U.S.C. 1002)) to use the administrators’ discretion under section 479A of such Act (20 U.S.C. 1087tt) to use current year income data, rather than preceding year income data, for determining the amount of need of the workers for Federal financial assistance under title IV of such Act (20 U.S.C. 1070 et seq.). “(5) Short-term prevocational services, including development of learning skills, communications skills, interviewing skills, punctuality, personal maintenance skills, and professional conduct to prepare individuals for employment or training. “(6) Individual career counseling, including job search and placement counseling, during the period in which the individual is receiving a trade adjustment allowance or training under this chapter, and after receiving such training for purposes of job placement. “(7) Provision of employment statistics information, including the provision of accurate information relating to local, regional, and national labor market areas, including— “(A) job vacancy listings in such labor market areas; “(B) information on jobs skills necessary to obtain jobs identified in job vacancy listings described in subparagraph (A); “(C) information relating to local occupations that are in demand and earnings potential of such occupations; and “(D) skills requirements for local occupations described in subparagraph (C). “(8) Information relating to the availability of supportive services, including services relating to child care, transportation, dependent care, housing assistance, and need-related payments that are necessary to enable an individual to participate in training.” . (b) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by striking the item relating to section 235 and inserting the following: “235. Employment and case management services.”. SEC. 1827. ADMINISTRATIVE EXPENSES AND EMPLOYMENT AND CASE MANAGEMENT SERVICES. (a) In General.— Part II of subchapter B of chapter 2 of title II of the Trade Act of 1974 (19 U.S.C. 2295 et seq.) is amended by inserting after section 235 the following: “SEC. 235A. FUNDING FOR ADMINISTRATIVE EXPENSES AND EMPLOYMENT AND CASE MANAGEMENT SERVICES. “(a) Funding for Administrative Expenses and Employment and Case Management Services.— “(1) In general.— In addition to any funds made available to a State to carry out section 236 for a fiscal year, the State shall receive for the fiscal year a payment in an amount that is equal to 15 percent of the amount of such funds. “(2) Use of funds.— A State that receives a payment under paragraph (1) shall— “(A) use not more than ⅔ of such payment for the administration of the trade adjustment assistance for workers program under this chapter, including for— “(i) processing waivers of training requirements under section 231; “(ii) collecting, validating, and reporting data required under this chapter; and “(iii) providing reemployment trade adjustment assistance under section 246; and “(B) use not less than ⅓ of such payment for employment and case management services under section 235. “(b) Additional Funding for Employment and Case Management Services.— “(1) In general.— In addition to any funds made available to a State to carry out section 236 and the payment under subsection (a)(1) for a fiscal year, the Secretary shall provide to the State for the fiscal year a payment in the amount of $350,000. “(2) Use of funds.— A State that receives a payment under paragraph (1) shall use such payment for the purpose of providing employment and case management services under section 235. “(3) Voluntary return of funds.— A State that receives a payment under paragraph (1) may decline or otherwise return such payment to the Secretary.” . (b) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by inserting after the item relating to section 235 the following: “Sec. 235A.  Funding for administrative expenses and employment and case management services.”. (c) Effective Date.— The amendments made by this section shall take effect on the date of the enactment of this Act. SEC. 1828. TRAINING FUNDING. (a) In General.— Section 236(a)(2) of the Trade Act of 1974 (19 U.S.C. 2296(a)(2)) is amended to read as follows: “(2) (A) The total amount of payments that may be made under paragraph (1) shall not exceed— “(i) for each of the fiscal years 2009 and 2010, $575,000,000; and “(ii) for the period beginning October 1, 2010, and ending December 31, 2010, $143,750,000. “(B) (i) The Secretary shall, as soon as practicable after the beginning of each fiscal year, make an initial distribution of the funds made available to carry out this section, in accordance with the requirements of subparagraph (C). “(ii) The Secretary shall ensure that not less than 90 percent of the funds made available to carry out this section for a fiscal year are distributed to the States by not later than July 15 of that fiscal year. “(C) (i) In making the initial distribution of funds pursuant to subparagraph (B)(i) for a fiscal year, the Secretary shall hold in reserve 35 percent of the funds made available to carry out this section for that fiscal year for additional distributions during the remainder of the fiscal year. “(ii) Subject to clause (iii), in determining how to apportion the initial distribution of funds pursuant to subparagraph (B)(i) in a fiscal year, the Secretary shall take into account, with respect to each State— “(I) the trend in the number of workers covered by certifications of eligibility under this chapter during the most recent 4 consecutive calendar quarters for which data are available; “(II) the trend in the number of workers participating in training under this section during the most recent 4 consecutive calendar quarters for which data are available; “(III) the number of workers estimated to be participating in training under this section during the fiscal year; “(IV) the amount of funding estimated to be necessary to provide training approved under this section to such workers during the fiscal year; and “(V) such other factors as the Secretary considers appropriate relating to the provision of training under this section. “(iii) In no case may the amount of the initial distribution to a State pursuant to subparagraph (B)(i) in a fiscal year be less than 25 percent of the initial distribution to the State in the preceding fiscal year. “(D) The Secretary shall establish procedures for the distribution of the funds that remain available for the fiscal year after the initial distribution required under subparagraph (B)(i). Such procedures may include the distribution of funds pursuant to requests submitted by States in need of such funds. “(E) If, during a fiscal year, the Secretary estimates that the amount of funds necessary to pay the costs of training approved under this section will exceed the dollar amount limitation specified in subparagraph (A), the Secretary shall decide how the amount of funds made available to carry out this section that have not been distributed at the time of the estimate will be apportioned among the States for the remainder of the fiscal year.” . (b) Determinations Regarding Training.— Section 236(a)(9) of the Trade Act of 1974 (19 U.S.C. 2296(a)(9)) is amended— (1) by striking “The Secretary” and inserting “(A) Subject to subparagraph (B), the Secretary”; and (2) by adding at the end the following: “(B) (i) In determining under paragraph (1)(E) whether a worker is qualified to undertake and complete training, the Secretary may approve training for a period longer than the worker’s period of eligibility for trade readjustment allowances under part I if the worker demonstrates a financial ability to complete the training after the expiration of the worker’s period of eligibility for such trade readjustment allowances. “(ii) In determining the reasonable cost of training under paragraph (1)(F) with respect to a worker, the Secretary may consider whether other public or private funds are reasonably available to the worker, except that the Secretary may not require a worker to obtain such funds as a condition of approval of training under paragraph (1).” . (c) Regulations.— Section 236 of the Trade Act of 1974 (19 U.S.C. 2296) is amended by adding at the end the following: “(g) Regulations With Respect to Apportionment of Training Funds to States.— “(1) In general.— Not later than 1 year after the date of the enactment of this subsection, the Secretary shall issue such regulations as may be necessary to carry out the provisions of subsection (a)(2). “(2) Consultations.— The Secretary shall consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives not less than 90 days before issuing any regulation pursuant to paragraph (1).” . (d) Effective Date.— This section and the amendments made by this section shall take effect upon the expiration of the 90-day period beginning on the date of the enactment of this Act, except that— (1) subparagraph (A) of section 236(a)(2) of the Trade Act of 1974, as amended by subsection (a) of this section, shall take effect on the date of the enactment of this Act; and (2) subparagraphs (B), (C), and (D) of such section 236(a)(2) shall take effect on October 1, 2009. SEC. 1829. PREREQUISITE EDUCATION; APPROVED TRAINING PROGRAMS. (a) In General.— Section 236(a)(5) of the Trade Act of 1974 (19 U.S.C. 2296(a)(5)) is amended— (1) in subparagraph (A)— (A) by striking “and” at the end of clause (i); (B) by adding “and” at the end of clause (ii); and (C) by inserting after clause (ii) the following: “(iii) apprenticeship programs registered under the Act of August 16, 1937 (commonly known as the ‘National Apprenticeship Act’; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.),” ; (2) by redesignating subparagraphs (E) and (F) as subparagraphs (F) and (G), respectively; (3) by inserting after subparagraph (D) the following: “(E) any program of prerequisite education or coursework required to enroll in training that may be approved under this section,” ; (4) in subparagraph (F)(ii), as redesignated by paragraph (2), by striking “and” at the end; (5) in subparagraph (G), as redesignated by paragraph (2), by striking the period at the end and inserting “, and”; and (6) by adding at the end the following: “(H) any training program or coursework at an accredited institution of higher education (described in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002)), including a training program or coursework for the purpose of— “(i) obtaining a degree or certification; or “(ii) completing a degree or certification that the worker had previously begun at an accredited institution of higher education. The Secretary may not limit approval of a training program under paragraph (1) to a program provided pursuant to title I of the Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.).” . (b) Conforming Amendments.— Section 233 of the Trade Act of 1974 (19 U.S.C. 2293) is amended— (1) in subsection (a)(2), by inserting “prerequisite education or” after “requires a program of”; and (2) in subsection (f) (as redesignated by section 1821(c) of this subtitle), by inserting “prerequisite education or” after “includes a program of”. (c) Technical Corrections.— Section 236 of the Trade Act of 1974 (19 U.S.C. 2296) is amended— (1) in subsection (a)— (A) in paragraph (1), in the flush text, by striking “his behalf” and inserting “the worker’s behalf”; and (B) in paragraph (3), by striking “this paragraph (1)” and inserting “paragraph (1)”; and (2) in subsection (b)(2), by striking “, and” and inserting a period. SEC. 1830. PRE-LAYOFF AND PART-TIME TRAINING. (a) Pre-Layoff Training.— (1) In general.— Section 236(a) of the Trade Act of 1974 (19 U.S.C. 2296(a)) is amended— (A) in paragraph (1), by inserting after “determines” the following: “, with respect to an adversely affected worker or an adversely affected incumbent worker,”; (B) in paragraph (4)— (i) in subparagraphs (A) and (B), by inserting “or an adversely affected incumbent worker” after “an adversely affected worker” each place it appears; and (ii) in subparagraph (C), by inserting “or adversely affected incumbent worker” after “adversely affected worker” each place it appears; (C) in paragraph (5), in the matter preceding subparagraph (A), by striking “The training programs” and inserting “Except as provided in paragraph (10), the training programs”; (D) in paragraph (6)(B), by inserting “or adversely affected incumbent worker” after “adversely affected worker”; (E) in paragraph (7)(B), by inserting “or adversely affected incumbent worker” after “adversely affected worker”; and (F) by inserting after paragraph (9) the following: “(10) In the case of an adversely affected incumbent worker, the Secretary may not approve— “(A) on-the-job training under paragraph (5)(A)(i); or “(B) customized training under paragraph (5)(A)(ii), unless such training is for a position other than the worker’s adversely affected employment. “(11) If the Secretary determines that an adversely affected incumbent worker for whom the Secretary approved training under this section is no longer threatened with a total or partial separation, the Secretary shall terminate the approval of such training.” . (2) Definitions.— Section 247 of the Trade Act of 1974 (19 U.S.C. 2319), as amended, is further amended by adding at the end the following: “(19) The term ‘adversely affected incumbent worker’ means a worker who— “(A) is a member of a group of workers who have been certified as eligible to apply for adjustment assistance under subchapter A; “(B) has not been totally or partially separated from adversely affected employment; and “(C) the Secretary determines, on an individual basis, is threatened with total or partial separation.” . (b) Part-Time Training.— Section 236 of the Trade Act of 1974 (19 U.S.C. 2296), as amended, is further amended by adding at the end the following: “(h) Part-Time Training.— “(1) In general.— The Secretary may approve full-time or part-time training for a worker under subsection (a). “(2) Limitation.— Notwithstanding paragraph (1), a worker participating in part-time training approved under subsection (a) may not receive a trade readjustment allowance under section 231.” . SEC. 1831. ON-THE-JOB TRAINING. (a) In General.— Section 236(c) of the Trade Act of 1974 (19 U.S.C. 2296(c)) is amended— (1) by redesignating paragraphs (1) through (10) as subparagraphs (A) through (J) and moving such subparagraphs 2 ems to the right; (2) by striking “(c) The Secretary shall” and all that follows through “such costs,” and inserting the following: “(c) On-the-Job Training Requirements.— “(1) In general.— The Secretary may approve on-the-job training for any adversely affected worker if— “(A) the worker meets the requirements for training to be approved under subsection (a)(1); “(B) the Secretary determines that on-the-job training— “(i) can reasonably be expected to lead to suitable employment with the employer offering the on-the-job training; “(ii) is compatible with the skills of the worker; “(iii) includes a curriculum through which the worker will gain the knowledge or skills to become proficient in the job for which the worker is being trained; and “(iv) can be measured by benchmarks that indicate that the worker is gaining such knowledge or skills; and “(C) the State determines that the on-the-job training program meets the requirements of clauses (iii) and (iv) of subparagraph (B). “(2) Monthly payments.— The Secretary shall pay the costs of on-the-job training approved under paragraph (1) in monthly installments. “(3) Contracts for on-the-job training.— “(A) In general.— The Secretary shall ensure, in entering into a contract with an employer to provide on-the-job training to a worker under this subsection, that the skill requirements of the job for which the worker is being trained, the academic and occupational skill level of the worker, and the work experience of the worker are taken into consideration. “(B) Term of contract.— Training under any such contract shall be limited to the period of time required for the worker receiving on-the-job training to become proficient in the job for which the worker is being trained, but may not exceed 104 weeks in any case. “(4) Exclusion of certain employers.— The Secretary shall not enter into a contract for on-the-job training with an employer that exhibits a pattern of failing to provide workers receiving on-the-job training from the employer with— “(A) continued, long-term employment as regular employees; and “(B) wages, benefits, and working conditions that are equivalent to the wages, benefits, and working conditions provided to regular employees who have worked a similar period of time and are doing the same type of work as workers receiving on-the-job training from the employer. “(5) Labor standards.— The Secretary may pay the costs of on-the-job training,” ; and (3) in paragraph (5), as redesignated— (A) in subparagraph (I), as redesignated by paragraph (1) of this section, by striking “paragraphs (1), (2), (3), (4), (5), and (6)” and inserting “subparagraphs (A), (B), (C), (D), (E), and (F)”; and (B) in subparagraph (J), as redesignated by paragraph (1) of this section, by striking “paragraph (8)” and inserting “subparagraph (H)”. (b) Repeal of Preference for Training on the Job.— Section 236(a)(1) of the Trade Act of 1974 (19 U.S.C. 2296(a)(1)) is amended by striking the last sentence. SEC. 1832. ELIGIBILITY FOR UNEMPLOYMENT INSURANCE AND PROGRAM BENEFITS WHILE IN TRAINING.   Section 236(d) of the Trade Act of 1974 (19 U.S.C. 2296(d)) is amended to read as follows: “(d) Eligibility.— An adversely affected worker may not be determined to be ineligible or disqualified for unemployment insurance or program benefits under this subchapter— “(1) because the worker— “(A) is enrolled in training approved under subsection (a); “(B) left work— “(i) that was not suitable employment in order to enroll in such training; or “(ii) that the worker engaged in on a temporary basis during a break in such training or a delay in the commencement of such training; or “(C) left on-the-job training not later than 30 days after commencing such training because the training did not meet the requirements of subsection (c)(1)(B); or “(2) because of the application to any such week in training of the provisions of State law or Federal unemployment insurance law relating to availability for work, active search for work, or refusal to accept work.” . SEC. 1833. JOB SEARCH AND RELOCATION ALLOWANCES. (a) Job Search Allowances.— Section 237 of the Trade Act of 1974 (19 U.S.C. 2297) is amended— (1) in subsection (a)(2)(C)(ii), by striking “, unless the worker received a waiver under section 231(c)”; and (2) in subsection (b)— (A) in paragraph (1), by striking “90 percent of the cost of” and inserting “all”; and (B) in paragraph (2), by striking “$1,250” and inserting “$1,500”. (b) Relocation Allowances.— Section 238 of the Trade Act of 1974 (19 U.S.C. 2298) is amended— (1) in subsection (a)(2)(E)(ii), by striking “, unless the worker received a waiver under section 231(c)”; and (2) in subsection (b)— (A) in paragraph (1), by striking “90 percent of the” and inserting “all”; and (B) in paragraph (2), by striking “$1,250” and inserting “$1,500”. Subpart D— Reemployment Trade Adjustment Assistance Program SEC. 1841. REEMPLOYMENT TRADE ADJUSTMENT ASSISTANCE PROGRAM. (a) In General.— Section 246 of the Trade Act of 1974 (19 U.S.C. 2318) is amended— (1) by amending the heading to read as follows: “SEC. 246. REEMPLOYMENT TRADE ADJUSTMENT ASSISTANCE PROGRAM.” ; (2) in subsection (a)— (A) in paragraph (1)— (i) by striking “Not later than” and all that follows through “2002, the Secretary” and inserting “The Secretary”; and (ii) by striking “an alternative trade adjustment assistance program for older workers” and inserting “a reemployment trade adjustment assistance program”; (B) in paragraph (2)— (i) in subparagraph (A)— (I) in the matter preceding clause (i), by striking “for a period not to exceed 2 years” and inserting “for the eligibility period under subparagraph (A) or (B) of paragraph (4) (as the case may be)”; and (II) by striking clauses (i) and (ii) and inserting the following: “(i) the wages received by the worker at the time of separation; and “(ii) the wages received by the worker from reemployment.” ; (ii) in subparagraph (B)— (I) by striking “for a period not to exceed 2 years” and inserting “for the eligibility period under subparagraph (A) or (B) of paragraph (4) (as the case may be)”; and (II) by striking “, as added by section 201 of the Trade Act of 2002”; and (iii) by adding at the end the following: “(C) Training and other services.— A worker described in paragraph (3)(B) participating in the program established under paragraph (1) is eligible to receive training approved under section 236 and employment and case management services under section 235.” ; and (C) by striking paragraphs (3) through (5) and inserting the following: “(3) Eligibility.— “(A) In general.— A group of workers certified under subchapter A as eligible for adjustment assistance under subchapter A is eligible for benefits described in paragraph (2) under the program established under paragraph (1). “(B) Individual eligibility.— A worker in a group of workers described in subparagraph (A) may elect to receive benefits described in paragraph (2) under the program established under paragraph (1) if the worker— “(i) is at least 50 years of age; “(ii) earns not more than $55,000 each year in wages from reemployment; “(iii) (I) is employed on a full-time basis as defined by the law of the State in which the worker is employed and is not enrolled in a training program approved under section 236; or “(II) is employed at least 20 hours per week and is enrolled in a training program approved under section 236; and “(iv) is not employed at the firm from which the worker was separated. “(4) Eligibility period for payments.— “(A) Worker who has not received trade readjustment allowance.— In the Effective date. case of a worker described in paragraph (3)(B) who has not received a trade readjustment allowance under part I of subchapter B pursuant to the certification described in paragraph (3)(A), the worker may receive benefits described in paragraph (2) for a period not to exceed 2 years beginning on the earlier of— “(i) the date on which the worker exhausts all rights to unemployment insurance based on the separation of the worker from the adversely affected employment that is the basis of the certification; or “(ii) the date on which the worker obtains reemployment described in paragraph (3)(B). “(B) Worker who has received trade readjustment allowance.— In the case of a worker described in paragraph (3)(B) who has received a trade readjustment allowance under part I of subchapter B pursuant to the certification described in paragraph (3)(A), the worker may receive benefits described in paragraph (2) for a period of 104 weeks beginning on the date on which the worker obtains reemployment described in paragraph (3)(B), reduced by the total number of weeks for which the worker received such trade readjustment allowance. “(5) Total amount of payments.— “(A) In general.— The payments described in paragraph (2)(A) made to a worker may not exceed— “(i) $12,000 per worker during the eligibility period under paragraph (4)(A); or “(ii) the amount described in subparagraph (B) per worker during the eligibility period under paragraph (4)(B). “(B) Amount described.— The amount described in this subparagraph is the amount equal to the product of— “(i) $12,000, and “(ii) the ratio of— “(I) the total number of weeks in the eligibility period under paragraph (4)(B) with respect to the worker, to “(II) 104 weeks. “(6) Calculation of amount of payments for certain workers.— “(A) In general.— In the Applicability. case of a worker described in paragraph (3)(B)(iii)(II), paragraph (2)(A) shall be applied by substituting the percentage described in subparagraph (B) for ‘50 percent’. “(B) Percentage described.— The percentage described in this subparagraph is the percentage— “(i) equal to ½ of the ratio of— “(I) the number of weekly hours of employment of the worker referred to in paragraph (3)(B)(iii)(II), to “(II) the number of weekly hours of employment of the worker at the time of separation, but “(ii) in no case more than 50 percent. “(7) Limitation on other benefits.— A worker described in paragraph (3)(B) may not receive a trade readjustment allowance under part I of subchapter B pursuant to the certification described in paragraph (3)(A) during any week for which the worker receives a payment described in paragraph (2)(A).” ; and (3) in subsection (b)(2), by striking “subsection (a)(3)(B)” and inserting “subsection (a)(3)”. (b) Extension of Program.— Section 246(b)(1) of the Trade Act of 1974 (19 U.S.C. 2318(b)(1)) is amended by striking “the date that is 5 years” and all that follows through the end period and inserting “December 31, 2010.”. (c) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by striking the item relating to section 246 and inserting the following: “Sec. 246.  Reemployment trade adjustment assistance program.”. Subpart E— Other Matters SEC. 1851. OFFICE OF TRADE ADJUSTMENT ASSISTANCE. (a) In General.— Subchapter C of chapter 2 of title II of the Trade Act of 1974 (19 U.S.C. 2311 et seq.) is amended by adding at the end the following: “SEC. 249A. OFFICE OF TRADE ADJUSTMENT ASSISTANCE. “(a) Establishment.— There is established in the Department of Labor an office to be known as the Office of Trade Adjustment Assistance (in this section referred to as the ‘Office’). “(b) Head of Office.— The head of the Office shall be an administrator, who shall report directly to the Deputy Assistant Secretary for Employment and Training. “(c) Principal Functions.— The principal functions of the administrator of the Office shall be— “(1) to oversee and implement the administration of trade adjustment assistance program under this chapter; and “(2) to carry out functions delegated to the Secretary of Labor under this chapter, including— “(A) making determinations under section 223; “(B) providing information under section 225 about trade adjustment assistance to workers and assisting such workers to prepare petitions or applications for program benefits; “(C) providing assistance to employers of groups of workers that have filed petitions under section 221 in submitting information required by the Secretary relating to the petitions; “(D) ensuring workers covered by a certification of eligibility under subchapter A receive the employment and case management services described in section 235; “(E) ensuring that States fully comply with agreements entered into under section 239; “(F) advocating for workers applying for benefits available under this chapter; “(G) establishing and overseeing a hotline that workers, employers, and other entities may call to obtain information regarding eligibility criteria, procedural requirements, and benefits available under this chapter; and “(H) carrying out such other duties with respect to this chapter as the Secretary specifies for purposes of this section. “(d) Administration.— “(1) Designation.— The administrator shall designate an employee of the Department of Labor with appropriate experience and expertise to carry out the duties described in paragraph (2). “(2) Duties.— The employee designated under paragraph (1) shall— “(A) receive complaints and requests for assistance related to the trade adjustment assistance program under this chapter; “(B) resolve such complaints and requests for assistance, in coordination with other employees of the Office; “(C) compile basic information concerning such complaints and requests for assistance; and “(D) carry out such other duties with respect to this chapter as the Secretary specifies for purposes of this section.” . (b) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by inserting after the item relating to section 249 the following: “Sec. 249A.  Office of Trade Adjustment Assistance.”. SEC. 1852. ACCOUNTABILITY OF STATE AGENCIES; COLLECTION AND PUBLICATION OF PROGRAM DATA; AGREEMENTS WITH STATES. (a) In General.— Section 239(a) of the Trade Act of 1974 (19 U.S.C. 2311(a)) is amended— (1) by amending clause (2) to read as follows: “(2) in accordance with subsection (f), shall make available to adversely affected workers and adversely affected incumbent workers covered by a certification under subchapter A the employment and case management services described in section 235,”; and (2) by striking “will” each place it appears and inserting “shall”. (b) Form and Manner of Data.— Section 239 of the Trade Act of 1974 (19 U.S.C. 2311) is amended— (1) by redesignating subsections (c) through (g) as subsections (d) through (h), respectively; and (2) by inserting after subsection (b) the following: “(c) Form and Manner of Data.— Each agreement under this subchapter shall— “(1) provide the Secretary with the authority to collect any data the Secretary determines necessary to meet the requirements of this chapter; and “(2) specify the form and manner in which any such data requested by the Secretary shall be reported.” . (c) State Activities.— Section 239(g) of the Trade Act of 1974 (as redesignated) is amended— (1) in paragraph (3), by striking “and” at the end; (2) by amending paragraph (4) to read as follows: “(4) perform outreach to, intake of, and orientation for adversely affected workers and adversely affected incumbent workers covered by a certification under subchapter A with respect to assistance and benefits available under this chapter, and” ; and (3) by adding at the end the following: “(5) make employment and case management services described in section 235 available to adversely affected workers and adversely affected incumbent workers covered by a certification under subchapter A and, if funds provided to carry out this chapter are insufficient to make such services available, make arrangements to make such services available through other Federal programs.” . (d) Reporting Requirement.— Section 239(h) of the Trade Act of 1974 (as redesignated) is amended by striking “1998.” and inserting “1998 (29 U.S.C. 2822(b)) and a description of the State’s rapid response activities under section 221(a)(2)(A).”. (e) Control Measures.— Section 239 of the Trade Act of 1974 (19 U.S.C. 2311), as amended, is further amended by adding at the end the following: “(i) Control Measures.— “(1) In general.— The Secretary Requirements. shall require each cooperating State and cooperating State agency to implement effective control measures and to effectively oversee the operation and administration of the trade adjustment assistance program under this chapter, including by means of monitoring the operation of control measures to improve the accuracy and timeliness of the data being collected and reported. “(2) Definition.— For purposes of paragraph (1), the term ‘control measures’ means measures that— “(A) are internal to a system used by a State to collect data; and “(B) are designed to ensure the accuracy and verifiability of such data. “(j) Data Reporting.— “(1) In general.— Any agreement entered into under this section shall require the cooperating State or cooperating State agency to report to the Secretary on a quarterly basis comprehensive performance accountability data, to consist of— “(A) the core indicators of performance described in paragraph (2)(A); “(B) the additional indicators of performance described in paragraph (2)(B), if any; and “(C) a description of efforts made to improve outcomes for workers under the trade adjustment assistance program. “(2) Core indicators described.— “(A) In general.— The core indicators of performance described in this paragraph are— “(i) the percentage of workers receiving benefits under this chapter who are employed during the second calendar quarter following the calendar quarter in which the workers cease receiving such benefits; “(ii) the percentage of such workers who are employed in each of the third and fourth calendar quarters following the calendar quarter in which the workers cease receiving such benefits; and “(iii) the earnings of such workers in each of the third and fourth calendar quarters following the calendar quarter in which the workers cease receiving such benefits. “(B) Additional indicators.— The Secretary and a cooperating State or cooperating State agency may agree upon additional indicators of performance for the trade adjustment assistance program under this chapter, as appropriate. “(3) Standards with respect to reliability of data.— In preparing Procedures. the quarterly report required by paragraph (1), each cooperating State or cooperating State agency shall establish procedures that are consistent with guidelines to be issued by the Secretary to ensure that the data reported are valid and reliable.” . SEC. 1853. VERIFICATION OF ELIGIBILITY FOR PROGRAM BENEFITS.   Section 239 of the Trade Act of 1974 (19 U.S.C. 2311), as amended, is further amended by adding at the end the following: “(k) Verification of Eligibility for Program Benefits.— “(1) In general.— An agreement under this subchapter shall provide that the State shall periodically redetermine that a worker receiving benefits under this subchapter who is not a citizen or national of the United States remains in a satisfactory immigration status. Once satisfactory immigration status has been initially verified through the immigration status verification system described in section 1137(d) of the Social Security Act (42 U.S.C. 1320b-7(d)) for purposes of establishing a worker’s eligibility for unemployment compensation, the State shall reverify the worker’s immigration status if the documentation provided during initial verification will expire during the period in which that worker is potentially eligible to receive benefits under this subchapter. The State shall conduct such redetermination in a timely manner, utilizing the immigration status verification system described in section 1137(d) of the Social Security Act (42 U.S.C. 1320b-7(d)). “(2) Procedures.— The Secretary shall establish procedures to ensure the uniform application by the States of the requirements of this subsection.” . SEC. 1854. COLLECTION OF DATA AND REPORTS; INFORMATION TO WORKERS. (a) In General.— Subchapter C of chapter 2 of title II of the Trade Act of 1974 (19 U.S.C. 2311 et seq.), as amended, is further amended by adding at the end the following: “SEC. 249B. COLLECTION AND PUBLICATION OF DATA AND REPORTS; INFORMATION TO WORKERS. “(a) In General.— Not later System. than 180 days after the date of the enactment of this section, the Secretary shall implement a system to collect and report the data described in subsection (b), as well as any other information that the Secretary considers appropriate to effectively carry out this chapter. “(b) Data to Be Included.— The system required under subsection (a) shall include collection of and reporting on the following data for each fiscal year: “(1) Data on petitions filed, certified, and denied.— “(A) The number of petitions filed, certified, and denied under this chapter. “(B) The number of workers covered by petitions filed, certified, and denied. “(C) The number of petitions, classified by— “(i) the basis for certification, including increased imports, shifts in production, and other bases of eligibility; and “(ii) congressional district of the United States. “(D) The average time for processing such petitions. “(2) Data on benefits received.— “(A) The number of workers receiving benefits under this chapter. “(B) The number of workers receiving each type of benefit, including training, trade readjustment allowances, employment and case management services, and relocation and job search allowances, and, to the extent feasible, credits for health insurance costs under section 35 of the Internal Revenue Code of 1986. “(C) The average time during which such workers receive each such type of benefit. “(3) Data on training.— “(A) The number of workers enrolled in training approved under section 236, classified by major types of training, including classroom training, training through distance learning, on-the-job training, and customized training. “(B) The number of workers enrolled in full-time training and part-time training. “(C) The average duration of training. “(D) The number of training waivers granted under section 231(c), classified by type of waiver. “(E) The number of workers who complete training and the duration of such training. “(F) The number of workers who do not complete training. “(4) Data on outcomes.— “(A) A summary of the quarterly reports required under section 239(j). “(B) The sectors in which workers are employed after receiving benefits under this chapter. “(5) Data on rapid response activities.— Whether rapid response activities were provided with respect to each petition filed under section 221. “(c) Classification of Data.— To the extent possible, in collecting and reporting the data described in subsection (b), the Secretary shall classify the data by industry, State, and national totals. “(d) Report.— Not later than December 15 of each year, the Secretary shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report that includes— “(1) a summary of the information collected under this section for the preceding fiscal year; “(2) information on the distribution of funds to each State pursuant to section 236(a)(2); and “(3) any recommendations of the Secretary with respect to changes in eligibility requirements, benefits, or training funding under this chapter based on the data collected under this section. “(e) Availability of Data.— “(1) In general.— The Secretary Web posting. shall make available to the public, by publishing on the website of the Department of Labor and by other means, as appropriate— “(A) the report required under subsection (d); “(B) the data collected under this section, in a searchable format; and “(C) a list of cooperating States and cooperating State agencies that failed to submit the data required by this section to the Secretary in a timely manner. “(2) Updates.— The Secretary Deadline. shall update the data under paragraph (1) on a quarterly basis.” . (b) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by inserting after the item relating to section 249A the following: “Sec. 249B.  Collection and publication of data and reports; information to workers.”. (c) Effective Date.— The amendments 19 USC 2323 note. made by this section shall take effect on the date of the enactment of this Act. SEC. 1855. FRAUD AND RECOVERY OF OVERPAYMENTS.   Section 243(a)(1) of the Trade Act of 1974 (19 U.S.C. 2315(a)(1)) is amended— (1) in the matter preceding subparagraph (A)— (A) by striking “may waive” and inserting “shall waive”; and (B) by striking “, in accordance with guidelines prescribed by the Secretary,”; and (2) in subparagraph (B), by striking “would be contrary to equity and good conscience” and inserting “would cause a financial hardship for the individual (or the individual’s household, if applicable) when taking into consideration the income and resources reasonably available to the individual (or household) and other ordinary living expenses of the individual (or household)”. SEC. 1856. SENSE OF CONGRESS ON APPLICATION OF TRADE ADJUSTMENT ASSISTANCE. (a) In General.— Chapter 5 of title II of the Trade Act of 1974 (19 U.S.C. 2391 et seq.) is amended by adding at the end the following: “SEC. 288. SENSE OF CONGRESS.   “It is the sense of Congress that the Secretaries of Labor, Commerce, and Agriculture should apply the provisions of chapter 2 (relating to adjustment assistance for workers), chapter 3 (relating to adjustment assistance for firms), chapter 4 (relating to adjustment assistance for communities), and chapter 6 (relating to adjustment assistance for farmers), respectively, with the utmost regard for the interests of workers, firms, communities, and farmers petitioning for benefits under such chapters.” . (b) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by inserting after the item relating to section 287 the following: “Sec. 288.  Sense of Congress.”. SEC. 1857. CONSULTATIONS IN PROMULGATION OF REGULATIONS.   Section 248 of the Trade Act of 1974 (19 U.S.C. 2320) is amended— (1) by striking “The Secretary shall” and inserting the following: “(a) In General.— The Secretary shall” ; and (2) by adding at the end the following: “(b) Consultations.— Not later Deadline. than 90 days before issuing a regulation under subsection (a), the Secretary shall consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives with respect to the regulation.” . SEC. 1858. TECHNICAL CORRECTIONS. (a) Determinations by Secretary of Labor.— Section 223(c) of the Trade Act of 1974 (19 U.S.C. 2273(c)) is amended by striking “his determination” and inserting “a determination”. (b) Qualifying Requirements for Workers.— Section 231(a) of the Trade Act of 1974 (19 U.S.C. 2291(a)) is amended— (1) in paragraph (1)— (A) in the matter preceding subparagraph (A), by striking “his application” and inserting “the worker’s application”; and (B) in subparagraph (A), by striking “he is covered” and inserting “the worker is covered”; (2) in paragraph (2)— (A) in subparagraph (A), by striking the period and inserting a comma; and (B) in subparagraph (D), by striking “5 U.S.C. 8521(a)(1)” and inserting “section 8521(a)(1) of title 5, United States Code”; and (3) in paragraph (3)— (A) by striking “he” each place it appears and inserting “the worker”; and (B) in subparagraph (C), by striking “him” and inserting “the worker”. (c) Subpoena Power.— Section 249 of the Trade Act of 1974 (19 U.S.C. 2321) is amended— (1) in the section heading, by striking “subpena” and inserting “subpoena”; (2) by striking “subpena” and inserting “subpoena” each place it appears; and (3) in subsection (a), by striking “him” and inserting “the Secretary”. (d) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by striking the item relating to section 249 and inserting the following: “Sec. 249.  Subpoena power.”. PART II— TRADE ADJUSTMENT ASSISTANCE FOR FIRMS SEC. 1861. EXPANSION TO SERVICE SECTOR FIRMS. (a) In General.— Section 251 of the Trade Act of 1974 (19 U.S.C. 2341) is amended by inserting “or service sector firm” after “agricultural firm” each place it appears. (b) Definition of Service Sector Firm.— Section 261 of the Trade Act of 1974 (19 U.S.C. 2351) is amended— (1) by striking “chapter,” and inserting “chapter:”; (2) by striking “the term ‘firm’ ” and inserting the following: “(1) Firm.— The term ‘firm’ ” ; and (3) by adding at the end the following: “(2) Service sector firm.— The term ‘service sector firm’ means a firm engaged in the business of supplying services.” . (c) Conforming Amendments.— (1) Section 251(c)(1)(C) of the Trade Act of 1974 (19 U.S.C. 2341(c)(1)(C)) is amended— (A) by inserting “or services” after “articles” the first place it appears; and (B) by inserting “or services which are supplied” after “produced”. (2) Section 251(c)(2)(B)(ii) of such Act is amended to read as follows: “(ii) Any firm that engages in exploration or drilling for oil or natural gas, or otherwise produces oil or natural gas, shall be considered to be producing articles directly competitive with imports of oil and with imports of natural gas.” . SEC. 1862. MODIFICATION OF REQUIREMENTS FOR CERTIFICATION.   Section 251(c)(1)(B) of the Trade Act of 1974 (19 U.S.C. 2341(c)(1)(B)) is amended to read as follows: “(B) that— “(i) sales or production, or both, of the firm have decreased absolutely, “(ii) sales or production, or both, of an article or service that accounted for not less than 25 percent of the total sales or production of the firm during the 12-month period preceding the most recent 12-month period for which date are available have decreased absolutely, “(iii) sales or production, or both, of the firm during the most recent 12-month period for which data are available have decreased compared to— “(I) the average annual sales or production for the firm during the 24-month period preceding that 12-month period, or “(II) the average annual sales or production for the firm during the 36-month period preceding that 12-month period, and “(iv) sales or production, or both, of an article or service that accounted for not less than 25 percent of the total sales or production of the firm during the most recent 12-month period for which data are available have decreased compared to— “(I) the average annual sales or production for the article or service during the 24-month period preceding that 12-month period, or “(II) the average annual sales or production for the article or service during the 36-month period preceding that 12-month period, and” . SEC. 1863. BASIS FOR DETERMINATIONS.   Section 251 of the Trade Act of 1974 (19 U.S.C. 2341), as amended, is further amended by adding at the end the following: “(e) Basis for Secretary’s Determinations.— For Certification. purposes of subsection (c)(1)(C), the Secretary may determine that there are increased imports of like or directly competitive articles or services, if customers accounting for a significant percentage of the decrease in the sales or production of the firm certify to the Secretary that such customers have increased their imports of such articles or services from a foreign country, either absolutely or relative to their acquisition of such articles or services from suppliers located in the United States. “(f) Notification to Firms of Availability of Benefits.— Upon receiving notice from the Secretary of Labor under section 225 of the identity of a firm that is covered by a certification issued under section 223, the Secretary of Commerce shall notify the firm of the availability of adjustment assistance under this chapter.” . SEC. 1864. OVERSIGHT AND ADMINISTRATION; AUTHORIZATION OF APPROPRIATIONS. (a) In General.— Chapter 3 of title II of the Trade Act of 1974 (19 U.S.C. 2341 et seq.) is amended— (1) by striking sections 254, 255, 256, and 19 USC 2344–2347. 257; (2) by redesignating sections 258, 259, 260, 261, 262, 264, and 265, as 19 USC 2348–2352, 2354, 2355. sections 256, 257, 258, 259, 260, 261, and 262, respectively; and (3) by inserting after section 253 the following: “SEC. 254. OVERSIGHT AND ADMINISTRATION. “(a) In General.— The Secretary Grants. shall, to such extent and in such amounts as are provided in appropriations Acts, provide grants to intermediary organizations (referred to in section 253(b)(1)) throughout the United States pursuant to agreements with such intermediary organizations. Each such agreement shall require the intermediary organization to provide benefits to firms certified under section 251. Deadline. Contracts. The Secretary shall, to the maximum extent practicable, provide by October 1, 2010, that contracts entered into with intermediary organizations be for a 12-month period and that all such contracts have the same beginning date and the same ending date. “(b) Distribution of Funds.— “(1) In general.— Not later Deadline. Methodology. than 90 days after the date of the enactment of this subsection, the Secretary shall develop a methodology for the distribution of funds among the intermediary organizations described in subsection (a). “(2) Prompt initial distribution.— The Criteria. methodology described in paragraph (1) shall ensure the prompt initial distribution of funds and establish additional criteria governing the apportionment and distribution of the remainder of such funds among the intermediary organizations. “(3) Criteria.— The methodology described in paragraph (1) shall include criteria based on the data in the annual report on the trade adjustment assistance for firms program described in section 1866 of the Trade and Globalization Adjustment Assistance Act of 2009. “(c) Requirements for Contracts.— An agreement Guidelines. with an intermediary organization described in subsection (a) shall require the intermediary organization to contract for the supply of services to carry out grants under this chapter in accordance with terms and conditions that are consistent with guidelines established by the Secretary. “(d) Consultations.— “(1) Consultations regarding methodology.— The Secretary shall consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives— “(A) not less than 30 days before finalizing the methodology described in subsection (b); and “(B) not less than 60 days before adopting any changes to such methodology. “(2) Consultations regarding guidelines.— The Secretary shall consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives not less than 60 days before finalizing the guidelines described in subsection (c) or adopting any subsequent changes to such guidelines. “SEC. 255. AUTHORIZATION OF APPROPRIATIONS. “(a) In General.— There are Time period. authorized to be appropriated to the Secretary $50,000,000 for each of the fiscal years 2009 through 2010, and $12,501,000 for the period beginning October 1, 2010, and ending December 31, 2010, to carry out the provisions of this chapter. Amounts appropriated pursuant to this subsection shall— “(1) be Deadline. available to provide adjustment assistance to firms that file a petition for such assistance pursuant to this chapter on or before December 31, 2010; and “(2) otherwise remain available until expended. “(b) Personnel.— Of the amounts appropriated pursuant to this section for each fiscal year, $350,000 shall be available for full-time positions in the Department of Commerce to administer the provisions of this chapter. Establishment. Of such funds the Secretary shall make available to the Economic Development Administration such sums as may be necessary to establish the position of Director of Adjustment Assistance for Firms and such other full-time positions as may be appropriate to administer the provisions of this chapter.” . (b) Residual Authority.— The Secretary of Commerce shall have the authority to modify, terminate, resolve, liquidate, or take any other action with respect to a loan, guarantee, contract, or any other financial assistance that was extended under section 254, 255, 256, or 257 of the Trade Act of 1974 (19 U.S.C. 2344, 2345, 2346, and 2347), as in effect on the day before the effective date set forth in section 1891. (c) Conforming Amendments.— (1) Section 256 of the Trade Act of 1974, as redesignated by subsection (a) of this section, 19 USC 2348. is amended by striking subsection (d). (2) Section 258 of the Trade Act of 1974, as redesignated by subsection (a) of this section, 19 USC 2350. is amended— (A) in the first sentence, by striking “and financial”; and (B) in the last sentence— (i) by striking “sections 253 and 254” and inserting “section 253”; and (ii) by striking “title 28 of the United States Code” and inserting “title 28, United States Code”. (d) Clerical Amendments.— The table of contents of the Trade Act of 1974 is amended by striking the items relating to sections 254, 255, 256, 257, 258, 259, 260, 261, 262, 264, and 265, and inserting the following: “Sec. 254.  Oversight and administration. “Sec. 255.  Authorization of appropriations. “Sec. 256.  Protective provisions. “Sec. 257.  Penalties. “Sec. 258.  Civil actions. “Sec. 259.  Definitions. “Sec. 260.  Regulations. “Sec. 261.  Study by Secretary of Commerce when International Trade Commission begins investigation; action where there is affirmative finding. “Sec. 262.  Assistance to industries.”. (e) Effective Date.— This section and the amendments made by this section shall take effect upon the expiration of the 90-day period beginning on the date of the enactment of this Act, except that subsections (b) and (d) of section 254 of the Trade Act of 1974 (as added by subsection (a) of this section) shall take effect on such date of enactment. SEC. 1865. INCREASED PENALTIES FOR FALSE STATEMENTS.   Section 257 of the Trade Act of 1974, as redesignated by section 1864(a), is 19 USC 2349. amended to read as follows: “SEC. 257. PENALTIES.   “Any person who— “(1) makes a false statement of a material fact knowing it to be false, or knowingly fails to disclose a material fact, or willfully overvalues any security, for the purpose of influencing in any way a determination under this chapter, or for the purpose of obtaining money, property, or anything of value under this chapter, or “(2) makes a false statement of a material fact knowing it to be false, or knowingly fails to disclose a material fact, when providing information to the Secretary during an investigation of a petition under this chapter, shall be imprisoned for not more than 2 years, or fined under title 18, United States Code, or both.” . SEC. 1866. ANNUAL REPORT ON TRADE ADJUSTMENT ASSISTANCE FOR FIRMS. (a) In General.— Not later than December 15, 2009, and each year thereafter, the Secretary of Commerce shall prepare a report containing data regarding the trade adjustment assistance for firms program provided for in chapter 3 of title II of the Trade Act of 1974 (19 U.S.C. 2341 et seq.) for the preceding fiscal year. The data shall include the following: (1) The number of firms that inquired about the program. (2) The number of petitions filed under section 251. (3) The number of petitions certified and denied. (4) The average time for processing petitions. (5) The number of petitions filed and firms certified for each congressional district of the United States. (6) The number of firms that received assistance in preparing their petitions. (7) The number of firms that received assistance developing business recovery plans. (8) The number of business recovery plans approved and denied by the Secretary of Commerce. (9) Sales, employment, and productivity at each firm participating in the program at the time of certification. (10) Sales, employment, and productivity at each firm upon completion of the program and each year for the 2-year period following completion. (11) The financial assistance received by each firm participating in the program. (12) The financial contribution made by each firm participating in the program. (13) The types of technical assistance included in the business recovery plans of firms participating in the program. (14) The number of firms leaving the program before completing the project or projects in their business recovery plans and the reason the project was not completed. (b) Classification of Data.— To the extent possible, in collecting and reporting the data described in subsection (a), the Secretary shall classify the data by intermediary organization, State, and national totals. (c) Report to Congress; Publication.— The Secretary of Commerce shall— (1) submit the report described in subsection (a) to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives; and (2) publish the report in the Federal Register and on the website of the Department of Commerce. (d) Protection of Confidential Information.— The Secretary of Commerce may not release information described in subsection (a) that the Secretary considers to be confidential business information unless the person submitting the confidential business information had notice, at the time of submission, that such information would be released by the Secretary, or such person subsequently consents to the release of the information. Nothing in this subsection shall be construed to prohibit the Secretary from providing such confidential business information to a court in camera or to another party under a protective order issued by a court. SEC. 1867. TECHNICAL CORRECTIONS. (a) In General.— Section 251 of the Trade Act of 1974 (19 U.S.C. 2341), as amended, is further amended— (1) in subsection (a), by striking “he has” and inserting “the Secretary has”; and (2) in subsection (d), by striking “60 days” and inserting “40 days”. (b) Technical Assistance.— Section 253(a)(3) of the Trade Act of 1974 (19 U.S.C. 2343(a)(3)) is amended by striking “of a certified firm” and inserting “to a certified firm”. PART III— TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES SEC. 1871. PURPOSE.   The purpose of the amendments made by this part is to assist communities impacted by trade with economic adjustment through the coordination of Federal, State, and local resources, the creation of community-based development strategies, and the development and provision of programs that meet the training needs of workers covered by certifications under section 223. SEC. 1872. TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES. (a) In General.— Chapter 4 of title II of the Trade Act of 1974 (19 U.S.C. 2371 et seq.) is amended to read as follows: “CHAPTER 4— TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES “Subchapter A— Trade Adjustment Assistance for Communities “SEC. 271. DEFINITIONS.   “In this subchapter: “(1) Agricultural commodity producer.— The term ‘agricultural commodity producer’ has the meaning given that term in section 291. “(2) Community.— The term ‘community’ means a city, county, or other political subdivision of a State or a consortium of political subdivisions of a State. “(3) Community impacted by trade.— The term ‘community impacted by trade’ means a community described in section 273(b)(2). “(4) Eligible community.— The term ‘eligible community’ means a community that the Secretary has determined under section 273(b)(1) is eligible to apply for assistance under this subchapter. “(5) Secretary.— The term ‘Secretary’ means the Secretary of Commerce. “SEC. 272. ESTABLISHMENT OF TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES PROGRAM.   “Not Deadline. later than August 1, 2009, the Secretary shall establish a trade adjustment assistance for communities program at the Department of Commerce under which the Secretary shall— “(1) provide technical assistance under section 274 to communities impacted by trade to facilitate the economic adjustment of those communities; and “(2) award grants to communities impacted by trade to carry out strategic plans developed under section 276. “SEC. 273. ELIGIBILITY; NOTIFICATION. “(a) Petition.— “(1) In general.— A community may submit a petition to the Secretary for an affirmative determination under subsection (b)(1) that the community is eligible to apply for assistance under this subchapter if— “(A) on or after August 1, 2009, one or more certifications described in subsection (b)(3) are made with respect to the community; and “(B) the community submits the petition not later than 180 days after the date of the most recent certification. “(2) Special rule with respect to certain communities.— In the Time period. case of a community with respect to which one or more certifications described in subsection (b)(3) were made on or after January 1, 2007, and before August 1, 2009, the community may submit not later than February 1, 2010, a petition to the Secretary for an affirmative determination under subsection (b)(1). “(b) Affirmative Determination.— “(1) In general.— The Secretary shall make an affirmative determination that a community is eligible to apply for assistance under this subchapter if the Secretary determines that the community is a community impacted by trade. “(2) Community impacted by trade.— A community is a community impacted by trade if— “(A) one or more certifications described in paragraph (3) are made with respect to the community; and “(B) the Secretary determines that the community is significantly affected by the threat to, or the loss of, jobs associated with any such certification. “(3) Certification described.— A certification described in this paragraph is a certification— “(A) by the Secretary of Labor that a group of workers in the community is eligible to apply for assistance under section 223; “(B) by the Secretary of Commerce that a firm located in the community is eligible to apply for adjustment assistance under section 251; or “(C) by the Secretary of Agriculture that a group of agricultural commodity producers in the community is eligible to apply for adjustment assistance under section 293. “(c) Notifications.— “(1) Notification to the governor.— The Governor of a State shall be notified promptly— “(A) by the Secretary of Labor, upon making a determination that a group of workers in the State is eligible for assistance under section 223; “(B) by the Secretary of Commerce, upon making a determination that a firm in the State is eligible for assistance under section 251; and “(C) by the Secretary of Agriculture, upon making a determination that a group of agricultural commodity producers in the State is eligible for assistance under section 293. “(2) Notification to community.— Upon making an affirmative determination under subsection (b)(1) that a community is eligible to apply for assistance under this subchapter, the Secretary shall promptly notify the community and the Governor of the State in which the community is located— “(A) of the affirmative determination; “(B) of the applicable provisions of this subchapter; and “(C) of the means for obtaining assistance under this subchapter and other appropriate economic assistance that may be available to the community. “SEC. 274. TECHNICAL ASSISTANCE. “(a) In General.— The Secretary shall provide comprehensive technical assistance to an eligible community to assist the community to— “(1) diversify and strengthen the economy in the community; “(2) identify significant impediments to economic development that result from the impact of trade on the community; and “(3) develop a strategic plan under section 276 to address economic adjustment and workforce dislocation in the community, including unemployment among agricultural commodity producers. “(b) Coordination of Federal Response.— The Secretary shall coordinate the Federal response to an eligible community by— “(1) identifying Federal, State, and local resources that are available to assist the community in responding to economic distress; and “(2) assisting the community in accessing available Federal assistance and ensuring that such assistance is provided in a targeted, integrated manner. “(c) Interagency Community Assistance Working Group.— “(1) In general.— The Secretary Establishment. shall establish an interagency Community Assistance Working Group, to be chaired by the Secretary or the Secretary’s designee, which shall assist the Secretary with the coordination of the Federal response pursuant to subsection (b). “(2) Membership.— The Working Group shall consist of representatives of any Federal department or agency with responsibility for providing economic adjustment assistance, including the Department of Agriculture, the Department of Defense, the Department of Education, the Department of Labor, the Department of Housing and Urban Development, the Department of Health and Human Services, the Small Business Administration, the Department of the Treasury, and any other Federal, State, or regional public department or agency the Secretary determines to be appropriate. “SEC. 275. GRANTS FOR ELIGIBLE COMMUNITIES. “(a) In General.— The Secretary may award a grant under this section to an eligible community to assist the community in carrying out any project or program that is included in a strategic plan developed by the community under section 276. “(b) Application.— “(1) In general.— An eligible community seeking to receive a grant under this section shall submit a grant application to the Secretary that contains— “(A) the strategic plan developed by the community under section 276(a)(1)(A) and approved by the Secretary under section 276(a)(1)(B); and “(B) a description of the project or program included in the strategic plan with respect to which the community seeks the grant. “(2) Coordination among grant programs.— If an entity in an eligible community is seeking or plans to seek a Community College and Career Training Grant under section 278 or a Sector Partnership Grant under section 279A while the eligible community is seeking a grant under this section, the eligible community shall include in the grant application a description of how the eligible community will integrate any projects or programs carried out using a grant under this section with any projects or programs that may be carried out using such other grants. “(c) Limitation.— An eligible community may not be awarded more than $5,000,000 under this section. “(d) Cost-Sharing.— “(1) Federal share.— The Federal share of a project or program for which a grant is awarded under this section may not exceed 95 percent of the cost of such project or program. “(2) Community share.— The Secretary shall require, as a condition of awarding a grant to an eligible community under this section, that the eligible community contribute not less than an amount equal to 5 percent of the amount of the grant toward the cost of the project or program for which the grant is awarded. “(e) Grants to Small- and Medium-Sized Communities.— The Secretary shall give priority to grant applications submitted under this section by eligible communities that are small- and medium-sized communities. “(f) Annual Report.— Not later than December 15 in each of the calendar years 2009 through 2011, the Secretary shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report— “(1) describing each grant awarded under this section during the preceding fiscal year; and “(2) assessing the impact on the eligible community of each such grant awarded in a fiscal year before the fiscal year referred to in paragraph (1). “SEC. 276. STRATEGIC PLANS. “(a) In General.— “(1) Development.— An eligible community that intends to apply for a grant under section 275 shall— “(A) develop a strategic plan for the community’s economic adjustment to the impact of trade; and “(B) submit the plan to the Secretary for evaluation and approval. “(2) Involvement of private and public entities.— “(A) In general.— To the extent practicable, an eligible community shall consult with entities described in subparagraph (B) in developing a strategic plan under paragraph (1). “(B) Entities described.— Entities described in this subparagraph are public and private entities within the eligible community, including— “(i) local, county, or State government agencies serving the community; “(ii) firms, including small- and medium-sized firms, within the community; “(iii) local workforce investment boards established under section 117 of the Workforce Investment Act of 1998 (29 U.S.C. 2832); “(iv) labor organizations, including State labor federations and labor-management initiatives, representing workers in the community; and “(v) educational institutions, local educational agencies, or other training providers serving the community. “(b) Contents.— The strategic plan shall, at a minimum, contain the following: “(1) A description and analysis of the capacity of the eligible community to achieve economic adjustment to the impact of trade. “(2) An analysis of the economic development challenges and opportunities facing the community as well as the strengths and weaknesses of the economy of the community. “(3) An assessment of the commitment of the eligible community to the strategic plan over the long term and the participation and input of members of the community affected by economic dislocation. “(4) A description of the role and the participation of the entities described in subsection (a)(2)(B) in developing the strategic plan. “(5) A description of the projects to be undertaken by the eligible community under the strategic plan. “(6) A description of how the strategic plan and the projects to be undertaken by the eligible community will facilitate the community’s economic adjustment. “(7) A description of the educational and training programs available to workers in the eligible community and the future employment needs of the community. “(8) An assessment of the cost of implementing the strategic plan, the timing of funding required by the eligible community to implement the strategic plan, and the method of financing to be used to implement the strategic plan. “(9) A strategy for continuing the economic adjustment of the eligible community after the completion of the projects described in paragraph (5). “(c) Grants to Develop Strategic Plans.— “(1) In general.— The Secretary, upon receipt of an application from an eligible community, may award a grant to the community to assist the community in developing a strategic plan under subsection (a)(1). A grant awarded under this paragraph shall not exceed 75 percent of the cost of developing the strategic plan. “(2) Funds to be used.— Of the funds appropriated pursuant to section 277(c), the Secretary may make available not more than $25,000,000 for each of the fiscal years 2009 and 2010, and $6,250,000 for the period beginning October 1, 2010, and ending December 31, 2010, to provide grants to eligible communities under paragraph (1). “SEC. 277. GENERAL PROVISIONS. “(a) Regulations.— “(1) In general.— The Secretary shall prescribe such regulations as are necessary to carry out the provisions of this subchapter, including— “(A) establishing specific guidelines for the submission and evaluation of strategic plans under section 276; “(B) establishing specific guidelines for the submission and evaluation of grant applications under section 275; and “(C) administering the grant programs established under sections 275 and 276. “(2) Consultations.— The Secretary shall consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives not less than 90 days prior to promulgating any final rule or regulation pursuant to paragraph (1). “(b) Personnel.— The Secretary shall designate such staff as may be necessary to carry out the responsibilities described in this subchapter. “(c) Authorization of Appropriations.— “(1) In general.— There are authorized to be appropriated to the Secretary $150,000,000 for each of the fiscal years 2009 and 2010, and $37,500,000 for the period beginning October 1, 2010, and ending December 31, 2010, to carry out this subchapter. “(2) Availability.— Amounts appropriated pursuant to this subchapter— “(A) shall be available to provide adjustment assistance to communities that have been approved for assistance pursuant to this chapter on or before December 31, 2010; and “(B) shall otherwise remain available until expended. “(3) Supplement not supplant.— Funds appropriated pursuant to this subchapter shall be used to supplement and not supplant other Federal, State, and local public funds expended to provide economic development assistance for communities. “Subchapter B— Community College and Career Training Grant Program “SEC. 278. COMMUNITY COLLEGE AND CAREER TRAINING GRANT PROGRAM. “(a) Grants Authorized.— “(1) In general.— Beginning August 1, 2009, the Secretary may award Community College and Career Training Grants to eligible institutions for the purpose of developing, offering, or improving educational or career training programs for workers eligible for training under section 236. “(2) Limitations.— An eligible institution may not be awarded— “(A) more than one grant under this section; or “(B) a grant under this section in excess of $1,000,000. “(b) Definitions.— In this section: “(1) Eligible institution.— The term ‘eligible institution’ means an institution of higher education (as defined in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002)), but only with respect to a program offered by the institution that can be completed in not more than 2 years. “(2) Secretary.— The term ‘Secretary’ means the Secretary of Labor. “(c) Grant Proposals.— “(1) In general.— An eligible institution seeking to receive a grant under this section shall submit a grant proposal to the Secretary at such time, in such manner, and containing such information as the Secretary may require. “(2) Guidelines.— Not later than June 1, 2009, the Secretary shall— “(A) promulgate guidelines for the submission of grant proposals under this section; and “(B) publish and maintain such guidelines on the website of the Department of Labor. “(3) Assistance.— The Secretary shall offer assistance in preparing a grant proposal to any eligible institution that requests such assistance. “(4) General requirements for grant proposals.— “(A) In general.— A grant proposal submitted to the Secretary under this section shall include a detailed description of— “(i) the specific project for which the grant proposal is submitted, including the manner in which the grant will be used to develop, offer, or improve an educational or career training program that is suited to workers eligible for training under section 236; “(ii) the extent to which the project for which the grant proposal is submitted will meet the educational or career training needs of workers in the community served by the eligible institution who are eligible for training under section 236; “(iii) the extent to which the project for which the grant proposal is submitted fits within any overall strategic plan developed by an eligible community under section 276; “(iv) the extent to which the project for which the grant proposal is submitted relates to any project funded by a Sector Partnership Grant awarded under section 279A; and “(v) any previous experience of the eligible institution in providing educational or career training programs to workers eligible for training under section 236. “(B) Absence of experience.— The absence of any previous experience in providing educational or career training programs described in subparagraph (A)(v) shall not automatically disqualify an eligible institution from receiving a grant under this section. “(5) Community outreach required.— In order to be considered by the Secretary, a grant proposal submitted by an eligible institution under this section shall— “(A) demonstrate that the eligible institution— “(i) reached out to employers, and other entities described in section 276(a)(2)(B) to identify— “(I) any shortcomings in existing educational and career training opportunities available to workers in the community; and “(II) any future employment opportunities within the community and the educational and career training skills required for workers to meet the future employment demand; “(ii) reached out to other similarly situated institutions in an effort to benefit from any best practices that may be shared with respect to providing educational or career training programs to workers eligible for training under section 236; and “(iii) reached out to any eligible partnership in the community that has sought or received a Sector Partnership Grant under section 279A to enhance the effectiveness of each grant and avoid duplication of efforts; and “(B) include a detailed description of— “(i) the extent and outcome of the outreach conducted under subparagraph (A); “(ii) the extent to which the project for which the grant proposal is submitted will contribute to meeting any shortcomings identified under subparagraph (A)(i)(I) or any educational or career training needs identified under subparagraph (A)(i)(II); and “(iii) the extent to which employers, including small- and medium-sized firms within the community, have demonstrated a commitment to employing workers who would benefit from the project for which the grant proposal is submitted. “(d) Criteria for Award of Grants.— “(1) In general.— Subject to the appropriation of funds, the Secretary shall award a grant under this section based on— “(A) a determination of the merits of the grant proposal submitted by the eligible institution to develop, offer, or improve educational or career training programs to be made available to workers eligible for training under section 236; “(B) an evaluation of the likely employment opportunities available to workers who complete an educational or career training program that the eligible institution proposes to develop, offer, or improve; and “(C) an evaluation of prior demand for training programs by workers eligible for training under section 236 in the community served by the eligible institution, as well as the availability and capacity of existing training programs to meet future demand for training programs. “(2) Priority for certain communities.— In awarding grants under this section, the Secretary shall give priority to an eligible institution that serves a community that the Secretary of Commerce has determined under section 273 is eligible to apply for assistance under subchapter A within the 5-year period preceding the date on which the grant proposal is submitted to the Secretary under this section. “(3) Matching requirements.— A grant awarded under this section may not be used to satisfy any private matching requirement under any other provision of law. “(e) Annual Report.— Not later than December 15 in each of the calendar years 2009 through 2011, the Secretary shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report— “(1) describing each grant awarded under this section during the preceding fiscal year; and “(2) assessing the impact of each award of a grant under this section in a fiscal year preceding the fiscal year referred to in paragraph (1) on workers receiving training under section 236. “SEC. 279. AUTHORIZATION OF APPROPRIATIONS. “(a) Authorization of Appropriations.— There are authorized to be appropriated to the Secretary of Labor $40,000,000 for each of the fiscal years 2009 and 2010, and $10,000,000 for the period beginning October 1, 2010, and ending December 31, 2010, to fund the Community College and Career Training Grant Program. Funds appropriated pursuant to this section shall remain available until expended. “(b) Supplement Not Supplant.— Funds appropriated pursuant to this section shall be used to supplement and not supplant other Federal, State, and local public funds expended to support community college and career training programs. “Subchapter C— Industry or Sector Partnership Grant Program for Communities Impacted by Trade “SEC. 279A. INDUSTRY OR SECTOR PARTNERSHIP GRANT PROGRAM FOR COMMUNITIES IMPACTED BY TRADE. “(a) Purpose.— The purpose of this subchapter is to facilitate efforts by industry or sector partnerships to strengthen and revitalize industries and create employment opportunities for workers in communities impacted by trade. “(b) Definitions.— In this subchapter: “(1) Community impacted by trade.— The term ‘community impacted by trade’ has the meaning given that term in section 271. “(2) Dislocated worker.— The term ‘dislocated worker’ means a worker who has been totally or partially separated, or is threatened with total or partial separation, from employment in an industry or sector in a community impacted by trade. “(3) Eligible partnership.— The term ‘eligible partnership’ means a voluntary partnership composed of public and private persons, firms, or other entities within a community impacted by trade, that shall include representatives of— “(A) an industry or sector within the community, including an industry association; “(B) local, county, or State government; “(C) multiple firms in the industry or sector, including small- and medium-sized firms, within the community; “(D) local workforce investment boards established under section 117 of the Workforce Investment Act of 1998 (29 U.S.C. 2832); “(E) labor organizations, including State labor federations and labor-management initiatives, representing workers in the community; and “(F) educational institutions, local educational agencies, or other training providers serving the community. “(4) Lead entity.— The term ‘lead entity’ means— “(A) an entity designated by the eligible partnership to be responsible for submitting a grant proposal under subsection (e) and serving as the eligible partnership’s fiscal agent in expending any Sector Partnership Grant awarded under this section; or “(B) a State agency designated by the Governor of the State to carry out the responsibilities described in subparagraph (A). “(5) Secretary.— The term ‘Secretary’ means the Secretary of Labor. “(6) Targeted industry or sector.— The term ‘targeted industry or sector’ means the industry or sector represented by an eligible partnership. “(c) Sector Partnership Grants Authorized.— Beginning Effective date. on August 1, 2009, and subject to the appropriation of funds, the Secretary shall award Sector Partnership Grants to eligible partnerships to assist the eligible partnerships in carrying out projects, over periods of not more than 3 years, to strengthen and revitalize industries and sectors and create employment opportunities for dislocated workers. “(d) Use of Sector Partnership Grants.— An eligible partnership may use a Sector Partnership Grant to carry out any project that the Secretary determines will further the purpose of this subchapter, which may include— “(1) identifying the skill needs of the targeted industry or sector and any gaps in the available supply of skilled workers in the community impacted by trade, and developing strategies for filling the gaps, including by— “(A) developing systems to better link firms in the targeted industry or sector to available skilled workers; “(B) helping firms in the targeted industry or sector to obtain access to new sources of qualified job applicants; “(C) retraining dislocated and incumbent workers; or “(D) facilitating the training of new skilled workers by aligning the instruction provided by local suppliers of education and training services with the needs of the targeted industry or sector; “(2) analyzing the skills and education levels of dislocated and incumbent workers and developing training to address skill gaps that prevent such workers from obtaining jobs in the targeted industry or sector; “(3) helping firms, especially small- and medium-sized firms, in the targeted industry or sector increase their productivity and the productivity of their workers; “(4) helping such firms retain incumbent workers; “(5) developing learning consortia of small- and medium-sized firms in the targeted industry or sector with similar training needs to enable the firms to combine their purchases of training services, and thereby lower their training costs; “(6) providing information and outreach activities to firms in the targeted industry or sector regarding the activities of the eligible partnership and other local service suppliers that could assist the firms in meeting needs for skilled workers; “(7) seeking, applying, and disseminating best practices learned from similarly situated communities impacted by trade in the development and implementation of economic growth and revitalization strategies; and “(8) identifying additional public and private resources to support the activities described in this subsection, which may include the option to apply for a community grant under section 275 or a Community College and Career Training Grant under section 278 (subject to meeting any additional requirements of those sections). “(e) Grant Proposals.— “(1) In general.— The lead entity of an eligible partnership seeking to receive a Sector Partnership Grant under this section shall submit a grant proposal to the Secretary at such time, in such manner, and containing such information as the Secretary may require. “(2) General requirements of grant proposals.— A grant proposal submitted under paragraph (1) shall, at a minimum— “(A) identify the members of the eligible partnership; “(B) identify the targeted industry or sector for which the eligible partnership intends to carry out projects using the Sector Partnership Grant; “(C) describe the goals that the eligible partnership intends to achieve to promote the targeted industry or sector; “(D) describe the projects that the eligible partnership will undertake to achieve such goals; “(E) demonstrate that the eligible partnership has the organizational capacity to carry out the projects described in subparagraph (D); “(F) explain— “(i) whether— “(I) the community impacted by trade has sought or received a community grant under section 275; “(II) an eligible institution in the community has sought or received a Community College and Career Training Grant under section 278; or “(III) any other entity in the community has received funds pursuant to any other federally funded training project; and “(ii) how the eligible partnership will coordinate its use of a Sector Partnership Grant with the use of such other grants or funds in order to enhance the effectiveness of each grant and any such funds and avoid duplication of efforts; and “(G) include performance measures, developed based on the performance measures issued by the Secretary under subsection (g)(2), and a timeline for measuring progress toward achieving the goals described in subparagraph (C). “(f) Award of Grants.— “(1) In general.— Upon application by the lead entity of an eligible partnership, the Secretary may award a Sector Partnership Grant to the eligible partnership to assist the partnership in carrying out any of the projects in the grant proposal that the Secretary determines will further the purposes of this subchapter. “(2) Limitations.— An eligible partnership may not be awarded— “(A) more than one Sector Partnership Grant; or “(B) a total grant award under this subchapter in excess of— “(i) except as provided in clause (ii), $2,500,000; or “(ii) in the case of an eligible partnership located within a community impacted by trade that is not served by an institution receiving a Community College and Career Training Grant under section 278, $3,000,000. “(g) Administration by the Secretary.— “(1) Technical assistance and oversight.— “(A) In general.— The Secretary shall provide technical assistance to, and oversight of, the lead entity of an eligible partnership in applying for and administering Sector Partnership Grants awarded under this section. “(B) Technical assistance.— Technical assistance provided under subparagraph (A) shall include providing conferences and such other methods of collecting and disseminating information on best practices developed by eligible partnerships as the Secretary determines appropriate. “(C) Grants or contracts for technical assistance.— The Secretary may award a grant or contract to one or more national or State organizations to provide technical assistance to foster the planning, formation, and implementation of eligible partnerships. “(2) Performance measures.— The Secretary shall issue a range of performance measures, with quantifiable benchmarks, and methodologies that eligible partnerships may use to measure progress toward the goals described in subsection (e). In developing such measures, the Secretary shall consider the benefits of the eligible partnership and its activities for workers, firms, industries, and communities. “(h) Reports.— “(1) Progress report.— Not later than 1 year after receiving a Sector Partnership Grant, and 3 years thereafter, the lead entity shall submit to the Secretary, on behalf of the eligible partnership, a report containing— “(A) a detailed description of the progress made toward achieving the goals described in subsection (e)(2)(C), using the performance measures required under subsection (e)(2)(G); “(B) a detailed evaluation of the impact of the grant award on workers and employers in the community impacted by trade; and “(C) a detailed description of all expenditures of funds awarded to the eligible partnership under the Sector Partnership Grant approved by the Secretary under this subchapter. “(2) Annual report.— Not later than December 15 in each of the calendar years 2009 through 2011, the Secretary shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report— “(A) describing each Sector Partnership Grant awarded to an eligible partnership during the preceding fiscal year; and “(B) assessing the impact of each Sector Partnership Grant awarded in a fiscal year preceding the fiscal year referred to in subparagraph (A) on workers and employers in communities impacted by trade. “SEC. 279B. AUTHORIZATION OF APPROPRIATIONS. “(a) In General.— There are authorized to be appropriated to the Secretary of Labor $40,000,000 for each of the fiscal years 2009 and 2010, and $10,000,000 for the period beginning October 1, 2010, and ending December 31, 2010, to carry out the Sector Partnership Grant program under section 279A. Funds appropriated pursuant to this section shall remain available until expended. “(b) Supplement Not Supplant.— Funds appropriated pursuant to this section shall be used to supplement and not supplant other Federal, State, and local public funds expended to support the economic development of local communities. “(c) Administrative Costs.— The Secretary may retain not more than 5 percent of the funds appropriated pursuant to this section for each fiscal year to administer the Sector Partnership Grant program under section 279A. “Subchapter D— General Provisions “SEC. 279C. RULE OF CONSTRUCTION.   “Nothing in this chapter prevents a worker from receiving trade adjustment assistance under chapter 2 of this title at the same time the worker is receiving assistance in any manner from— “(1) a community receiving a community grant under subchapter A; “(2) an eligible institution receiving a Community College and Career Training Grant under subchapter B; or “(3) an eligible partnership receiving a Sector Partnership Grant under subchapter C.” . SEC. 1873. CONFORMING AMENDMENTS. (a) Table of Contents.— The table of contents of the Trade Act of 1974 is amended by striking the items relating to chapter 4 of title II and inserting the following: “Chapter 4— Trade Adjustment Assistance for Communities “Subchapter A— Trade Adjustment Assistance for Communities “Sec. 271.  Definitions. “Sec. 272.  Establishment of trade adjustment assistance for communities program. “Sec. 273.  Eligibility; notification. “Sec. 274.  Technical assistance. “Sec. 275.  Grants for eligible communities. “Sec. 276.  Strategic plans. “Sec. 277.  General provisions. “Subchapter B— Community College and Career Training Grant Program “Sec. 278.  Community college and career training grant program. “Sec. 279.  Authorization of appropriations. “Subchapter C— Industry or Sector Partnership Grant Program for Communities Impacted by Trade “Sec. 279A.  Industry or sector partnership grant program for communities impacted by trade. “Sec. 279B.  Authorization of appropriations. “Subchapter D— General Provisions “Sec. 279C.  Rule of construction.” (b) Judicial Review.— (1) Section 284(a) of the Trade Act of 1974 (19 U.S.C. 2395(a)) is amended— (A) by inserting “or 296” after “section 293”; (B) by striking “or any other interested domestic party” and inserting “or authorized representative of a community”; and (C) by striking “section 271” and inserting “section 273”. (2) Section 1581(d) of title 28, United States Code, is amended— (A) in paragraph (2), by striking “; and” and inserting a semicolon; (B) in paragraph (3)— (i) by striking “271” and inserting “273”; and (ii) by striking the period and inserting “; and”; and (C) by adding at the end the following: “(4) any final determination of the Secretary of Agriculture under section 293 or 296 of the Trade Act of 1974 (19 U.S.C. 2401b) with respect to the eligibility of a group of agricultural commodity producers for adjustment assistance under such Act.” . PART IV— TRADE ADJUSTMENT ASSISTANCE FOR FARMERS SEC. 1881. DEFINITIONS.   Section 291 of the Trade Act of 1974 (19 U.S.C. 2401) is amended— (1) by amending paragraph (1) to read as follows: “(1) Agricultural commodity.— The term ‘agricultural commodity’ includes— “(A) any agricultural commodity (including livestock) in its raw or natural state; “(B) any class of goods within an agricultural commodity; and “(C) in the case of an agricultural commodity producer described in paragraph (2)(B), wild-caught aquatic species.” ; (2) by amending paragraph (2) to read as follows: “(2) Agricultural commodity producer.— The term ‘agricultural commodity producer’ means— “(A) a person that shares in the risk of producing an agricultural commodity and that is entitled to a share of the commodity for marketing, including an operator, a sharecropper, or a person that owns or rents the land on which the commodity is produced; or “(B) a person that reports gain or loss from the trade or business of fishing on the person’s annual Federal income tax return for the taxable year that most closely corresponds to the marketing year with respect to which a petition is filed under section 292.” ; and (3) by adding at the end the following: “(7) Marketing year.— The term ‘marketing year’ means— “(A) a marketing year designated by the Secretary with respect to an agricultural commodity; or “(B) in the case of an agricultural commodity with respect to which the Secretary does not designate a marketing year, a calendar year.” . SEC. 1882. ELIGIBILITY. (a) In General.— Section 292 of the Trade Act of 1974 (19 U.S.C. 2401a) is amended by striking subsections (c) through (e) and inserting the following: “(c) Group Eligibility Requirements.— Certification. The Secretary shall certify a group of agricultural commodity producers as eligible to apply for adjustment assistance under this chapter if the Secretary determines that— “(1) (A) the national average price of the agricultural commodity produced by the group during the most recent marketing year for which data are available is less than 85 percent of the average of the national average price for the commodity in the 3 marketing years preceding such marketing year; “(B) the quantity of production of the agricultural commodity produced by the group during such marketing year is less than 85 percent of the average of the quantity of production of the commodity produced by the group in the 3 marketing years preceding such marketing year; “(C) the value of production of the agricultural commodity produced by the group during such marketing year is less than 85 percent of the average value of production of the commodity produced by the group in the 3 marketing years preceding such marketing year; or “(D) the cash receipts for the agricultural commodity produced by the group during such marketing year are less than 85 percent of the average of the cash receipts for the commodity produced by the group in the 3 marketing years preceding such marketing year; “(2) the volume of imports of articles like or directly competitive with the agricultural commodity produced by the group in the marketing year with respect to which the group files the petition increased compared to the average volume of such imports during the 3 marketing years preceding such marketing year; and “(3) the increase in such imports contributed importantly to the decrease in the national average price, quantity of production, or value of production of, or cash receipts for, the agricultural commodity, as described in paragraph (1). “(d) Eligibility of Certain Other Producers.— An agricultural commodity producer or group of producers that resides outside of the State or region identified in the petition filed under subsection (a) may file a request to become a party to that petition not later than 15 days after the date the notice is published in the Federal Register under subsection (a) with respect to that petition. “(e) Treatment of Classes of Goods Within a Commodity.— In any case in which there are separate classes of goods within an agricultural commodity, the Secretary shall treat each class as a separate commodity in determining under subsection (c)— “(1) group eligibility; “(2) the national average price, quantity of production, or value of production, or cash receipts; and “(3) the volume of imports.” . (b) Conforming Amendments.— Section 293 of the Trade Act of 1974 (19 U.S.C. 2401b) is amended— (1) in subsection (a), by striking “section 292 (c) or (d), as the case may be,” and inserting “section 292(c)”; and (2) in subsection (c), by striking “decline in price for” and inserting “decrease in the national average price, quantity of production, or value of production of, or cash receipts for,”. SEC. 1883. BENEFITS. (a) In General.— Section 296 of the Trade Act of 1974 (19 U.S.C. 2401e) is amended to read as follows: “SEC. 296. QUALIFYING REQUIREMENTS AND BENEFITS FOR AGRICULTURAL COMMODITY PRODUCERS. “(a) In General.— “(1) Requirements.— “(A) In general.— Deadline. Benefits under this chapter shall be available to an agricultural commodity producer covered by a certification under this chapter who files an application for such benefits not later than 90 days after the date on which the Secretary makes a determination and issues a certification of eligibility under section 293, if the producer submits to the Secretary sufficient information to establish that— “(i) the producer produced the agricultural commodity covered by the application filed under this subsection in the marketing year with respect to which the petition is filed and in at least 1 of the 3 marketing years preceding that marketing year; “(ii) (I) the quantity of the agricultural commodity that was produced by the producer in the marketing year with respect to which the petition is filed has decreased compared to the most recent marketing year preceding that marketing year for which data are available; or “(II) (aa) the price received for the agricultural commodity by the producer during the marketing year with respect to which the petition is filed has decreased compared to the average price for the commodity received by the producer in the 3 marketing years preceding that marketing year; or “(bb) the county level price maintained by the Secretary for the agricultural commodity on the date on which the petition is filed has decreased compared to the average county level price for the commodity in the 3 marketing years preceding the date on which the petition is filed; and “(iii) the producer is not receiving— “(I) cash benefits under chapter 2 or 3; or “(II) benefits based on the production of an agricultural commodity covered by another petition filed under this chapter. “(B) Special rule with respect to crops not grown every year.— For purposes of subparagraph (A)(ii)(II)(aa), if a petition is filed with respect to an agricultural commodity that is not produced by the producer every year, an agricultural commodity producer producing that commodity may establish the average price received for the commodity by the producer in the 3 marketing years preceding the year with respect to which the petition is filed by using average price data for the 3 most recent marketing years in which the producer produced the commodity and for which data are available. “(2) Limitations based on adjusted gross income.— “(A) In general.— Notwithstanding any other provision of this chapter, an agricultural commodity producer shall not be eligible for assistance under this chapter in any year in which the average adjusted gross income (as defined in section 1001D(a) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(a))) of the producer exceeds the level set forth in subparagraph (A) or (B) of section 1001D(b)(1) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(b)(1)), whichever is applicable. “(B) Demonstration of compliance.— An agricultural commodity producer shall provide to the Secretary such information as the Secretary determines necessary to demonstrate that the producer is in compliance with the limitation under subparagraph (A). “(C) Counter-cyclical and acre payments.— The total amount of payments made to an agricultural commodity producer under this chapter during any crop year may not exceed the limitations on payments set forth in subsections (b)(2), (b)(3), (c)(2), and (c)(3) of section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308). “(b) Technical Assistance.— “(1) Initial technical assistance.— “(A) In general.— An agricultural commodity producer that files an application and meets the requirements under subsection (a)(1) shall be entitled to receive initial technical assistance designed to improve the competitiveness of the production and marketing of the agricultural commodity with respect to which the producer was certified under this chapter. Such assistance shall include information regarding— “(i) improving the yield and marketing of that agricultural commodity; and “(ii) the feasibility and desirability of substituting one or more alternative agricultural commodities for that agricultural commodity. “(B) Transportation and subsistence expenses.— “(i) In general.— The Secretary may authorize supplemental assistance necessary to defray reasonable transportation and subsistence expenses incurred by an agricultural commodity producer in connection with initial technical assistance under subparagraph (A) if such assistance is provided at facilities that are not within normal commuting distance of the regular place of residence of the producer. “(ii) Exceptions.— The Secretary may not authorize payments to an agricultural commodity producer under clause (i)— “(I) for subsistence expenses that exceed the lesser of— “(aa) the actual per diem expenses for subsistence incurred by the producer; or “(bb) the prevailing per diem allowance rate authorized under Federal travel regulations; or “(II) for travel expenses that exceed the prevailing mileage rate authorized under the Federal travel regulations. “(2) Intensive technical assistance.— A producer that has completed initial technical assistance under paragraph (1) shall be eligible to participate in intensive technical assistance. Such assistance shall consist of— “(A) a series of courses to further assist the producer in improving the competitiveness of the producer in producing— “(i) the agricultural commodity with respect to which the producer was certified under this chapter; or “(ii) another agricultural commodity; and “(B) assistance in developing an initial business plan based on the courses completed under subparagraph (A). “(3) Initial business plan.— “(A) Approval by secretary.— The Secretary shall approve an initial business plan developed under paragraph (2)(B) if the plan— “(i) reflects the skills gained by the producer through the courses described in paragraph (2)(A); and “(ii) demonstrates how the producer will apply those skills to the circumstances of the producer. “(B) Financial assistance for implementing initial business plan.— Upon approval of the producer’s initial business plan by the Secretary under subparagraph (A), a producer shall be entitled to an amount not to exceed $4,000 to— “(i) implement the initial business plan; or “(ii) develop a long-term business adjustment plan under paragraph (4). “(4) Long-term business adjustment plan.— “(A) In general.— A producer that has completed intensive technical assistance under paragraph (2) and whose initial business plan has been approved under paragraph (3)(A) shall be eligible for, in addition to the amount under subparagraph (C), assistance in developing a long-term business adjustment plan. “(B) Approval of long-term business adjustment plans.— The Secretary shall approve a long-term business adjustment plan developed under subparagraph (A) if the Secretary determines that the plan— “(i) includes steps reasonably calculated to materially contribute to the economic adjustment of the producer to changing market conditions; “(ii) takes into consideration the interests of the workers employed by the producer; and “(iii) demonstrates that the producer will have sufficient resources to implement the business plan. “(C) Plan implementation.— Upon approval of the producer’s long-term business adjustment plan under subparagraph (B), a producer shall be entitled to an amount not to exceed $8,000 to implement the long-term business adjustment plan. “(c) Maximum Amount of Assistance.— An agricultural commodity producer may receive not more than $12,000 under paragraphs (3) and (4) of subsection (b) in the 36-month period following certification under section 293. “(d) Limitations on Other Assistance.— An agricultural commodity producer that receives benefits under this chapter (other than initial technical assistance under subsection (b)(1)) shall not be eligible for cash benefits under chapter 2 or 3.” . (b) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by striking the item relating to section 296 and inserting the following: “Sec. 296.  Qualifying requirements and benefits for agricultural commodity producers.”. SEC. 1884. REPORT.   Section 293 of the Trade Act of 1974 (19 U.S.C. 2401b) is amended by adding at the end the following: “(d) Report by the Secretary.— Not later than January 30, 2010, and annually thereafter, the Secretary of Agriculture shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report containing the following information with respect to adjustment assistance provided under this chapter during the preceding fiscal year: “(1) A list of the agricultural commodities covered by a certification under this chapter. “(2) The States or regions in which such commodities are produced and the aggregate amount of such commodities produced in each such State or region. “(3) The total number of agricultural commodity producers, by congressional district, receiving benefits under this chapter. “(4) The total number of agricultural commodity producers, by congressional district, receiving technical assistance under this chapter.” . SEC. 1885. FRAUD AND RECOVERY OF OVERPAYMENTS.   Section 297(a)(1) of the Trade Act of 1974 (19 U.S.C. 2401f(a)(1)) is amended by inserting “or has expended funds received under this chapter for a purpose that was not approved by the Secretary,” after “entitled,”. SEC. 1886. DETERMINATION OF INCREASES OF IMPORTS FOR CERTAIN FISHERMEN.   For purposes of chapters 2 and 6 of title II of the Trade Act of 1974 (19 U.S.C. 2251 et seq.), in the case of an agricultural commodity producer that— (1) is a fisherman or aquaculture producer, and (2) is otherwise eligible for adjustment assistance under chapter 2 or 6, as the case may be, the increase in imports of articles like or directly competitive with the agricultural commodity produced by such producer may be based on imports of wild-caught seafood, farm-raised seafood, or both. SEC. 1887. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE FOR FARMERS.   Section 298(a) of the Trade Act of 1974 (19 U.S.C. 2401g(a)) is amended by striking “fiscal years 2003 through 2007” and all that follows through the end period and inserting “fiscal years 2009 and 2010, and $22,500,000 for the period beginning October 1, 2010, and ending December 31, 2010, to carry out the purposes of this chapter, including administrative costs, and salaries and expenses of employees of the Department of Agriculture.”. PART V— GENERAL PROVISIONS SEC. 1891. EFFECTIVE DATE. (a) In General.— Except as otherwise provided in this subtitle, and subsection (b) of this section, this subtitle and the amendments made by this subtitle— (1) shall take effect upon the expiration of the 90-day period beginning on the date of the enactment of this Act; and (2) Applicability. shall apply to— (A) petitions for certification filed under chapter 2, 3, or 6 of title II of the Trade Act of 1974 on or after the effective date described in paragraph (1); and (B) petitions for assistance and proposals for grants filed under chapter 4 of title II of the Trade Act of 1974 on or after such effective date. (b) Certifications Made Before Effective Date.— Notwithstanding subsection (a)— (1) a worker shall continue to receive (or be eligible to receive) trade adjustment assistance and other benefits under subchapter B of chapter 2 of title II of the Trade Act of 1974, as in effect on the day before the effective date described in subsection (a)(1), for any week for which the worker meets the eligibility requirements of such chapter 2 as in effect on the day before such effective date, if the worker— (A) is certified as eligible for trade adjustment assistance benefits under such chapter 2 pursuant to a petition filed under section 221 of the Trade Act of 1974 on or before such effective date; and (B) would otherwise be eligible to receive trade adjustment assistance benefits under such chapter as in effect on the day before such effective date; (2) a worker shall continue to receive (or be eligible to receive) benefits under section 246(a)(2) of the Trade Act of 1974, as in effect on the day before the effective date described in subsection (a)(1), for such period for which the worker meets the eligibility requirements of section 246 of that Act as in effect on the day before such effective date, if the worker— (A) is certified as eligible for benefits under such section 246 pursuant to a petition filed under section 221 of the Trade Act of 1974 on or before such effective date; and (B) would otherwise be eligible to receive benefits under such section 246(a)(2) as in effect on the day before such effective date; and (3) a firm shall continue to receive (or be eligible to receive) adjustment assistance under chapter 3 of title II of the Trade Act of 1974, as in effect on the day before the effective date described in subsection (a)(1), for such period for which the firm meets the eligibility requirements of such chapter 3 as in effect on the day before such effective date, if the firm— (A) is certified as eligible for benefits under such chapter 3 pursuant to a petition filed under section 251 of the Trade Act of 1974 on or before such effective date; and (B) would otherwise be eligible to receive benefits under such chapter 3 as in effect on the day before such effective date. SEC. 1892. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE PROGRAMS. (a) For Workers.— Section 245(a) of the Trade Act of 1974 (19 U.S.C. 2317(a)) is amended by striking “December 31, 2007” and inserting “December 31, 2010”. (b) Termination.— Section 285 of the Trade Act of 1974 (19 U.S.C. 2271 note prec.) is amended— (1) in subsection (a), by striking “December 31, 2007” each place it appears and inserting “December 31, 2010”; and (2) by amending subsection (b) to read as follows: “(b) Other Assistance.— “(1) Assistance for firms.— “(A) In general.— Except as provided in subparagraph (B), technical assistance and grants may not be provided under chapter 3 after December 31, 2010. “(B) Exception.— Notwithstanding subparagraph (A), any technical assistance or grant approved under chapter 3 on or before December 31, 2010, may be provided— “(i) to the extent funds are available pursuant to such chapter for such purpose; and “(ii) to the extent the recipient of the technical assistance or grant is otherwise eligible to receive such technical assistance or grant, as the case may be. “(2) Farmers.— “(A) In general.— Except as provided in subparagraph (B), technical assistance and financial assistance may not be provided under chapter 6 after December 31, 2010. “(B) Exception.— Notwithstanding subparagraph (A), any technical or financial assistance approved under chapter 6 on or before December 31, 2010, may be provided— “(i) to the extent funds are available pursuant to such chapter for such purpose; and “(ii) to the extent the recipient of the technical or financial assistance is otherwise eligible to receive such technical or financial assistance, as the case may be. “(3) Assistance for communities.— “(A) In general.— Except as provided in subparagraph (B), technical assistance and grants may not be provided under chapter 4 after December 31, 2010. “(B) Exception.— Notwithstanding subparagraph (A), any technical assistance or grant approved under chapter 4 on or before December 31, 2010, may be provided— “(i) to the extent funds are available pursuant to such chapter for such purpose; and “(ii) to the extent the recipient of the technical assistance or grant is otherwise eligible to receive such technical assistance or grant, as the case may be.” . SEC. 1893. TERMINATION; RELATED PROVISIONS. (a) Sunset.— (1) In general.— Subject to paragraph (2), the amendments made by this subtitle to chapters 2, 3, 4, 5, and 6 of title II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.) shall not apply on or after January 1, 2011. (2) Exception.— The amendments made by this subtitle to section 285 of the Trade Act of 1974 shall continue to apply on and after January 1, 2011, with respect to— (A) workers certified as eligible for trade adjustment assistance benefits under chapter 2 of title II of that Act pursuant to petitions filed under section 221 of that Act before January 1, 2011; (B) firms certified as eligible for technical assistance or grants under chapter 3 of title II of that Act pursuant to petitions filed under section 251 of that Act before January 1, 2011; (C) recipients approved for technical assistance or grants under chapter 4 of title II of that Act pursuant to petitions for assistance or proposals for grants (as the case may be) filed pursuant to such chapter before January 1, 2011; and (D) agricultural commodity producers certified as eligible for technical or financial assistance under chapter 6 of title II of that Act pursuant to petitions filed under section 292 of that Act before January 1, 2011. (b) Application of Prior Law.— Chapters 2, 3, 4, 5, and 6 of title II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.) shall be applied and administered beginning January 1, 2011, as if the amendments made by this subtitle (other than part VI) had never been enacted, except that in applying and administering such chapters— (1) section 245 of that Act shall be applied and administered by substituting “2011” for “2007”; (2) section 246(b) of that Act shall be applied and administered by substituting “December 31, 2011” for “the date that is 5 years” and all that follows through “State”; (3) section 256(b) of that Act shall be applied and administered by substituting “the 1-year period beginning January 1, 2011” for “each of fiscal years 2003 through 2007, and $4,000,000 for the 3-month period beginning October 1, 2007”; (4) section 298(a) of that Act shall be applied and administered by substituting “the 1-year period beginning January 1, 2011” for “each of the fiscal years” and all that follows through “October 1, 2007”; and (5) subject to subsection (a)(2), section 285 of that Act shall be applied and administered— (A) in subsection (a), by substituting “2011” for “2007” each place it appears; and (B) by applying and administering subsection (b) as if it read as follows: “(b) Other Assistance.— “(1) Assistance for firms.— “(A) In general.— Except as provided in subparagraph (B), assistance may not be provided under chapter 3 after December 31, 2011. “(B) Exception.— Notwithstanding subparagraph (A), any assistance approved under chapter 3 on or before December 31, 2011, may be provided— “(i) to the extent funds are available pursuant to such chapter for such purpose; and “(ii) to the extent the recipient of the assistance is otherwise eligible to receive such assistance. “(2) Farmers.— “(A) In general.— Except as provided in subparagraph (B), assistance may not be provided under chapter 6 after December 31, 2011. “(B) Exception.— Notwithstanding subparagraph (A), any assistance approved under chapter 6 on or before December 31, 2011, may be provided— “(i) to the extent funds are available pursuant to such chapter for such purpose; and “(ii) to the extent the recipient of the assistance is otherwise eligible to receive such assistance.” . SEC. 1894. GOVERNMENT ACCOUNTABILITY OFFICE REPORT.   Not later than September 30, 2012, the Comptroller General of the United States shall prepare and submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a comprehensive report on the operation and effectiveness of the amendments made by this subtitle to chapters 2, 3, 4, and 6 of the Trade Act of 1974. SEC. 1895. EMERGENCY DESIGNATION.   Amounts appropriated pursuant to this subtitle are designated as an emergency requirement and necessary to meet emergency needs pursuant to section 204(a) of S. Con. Res. 21 (110th Congress) and section 301(b)(2) of S. Con. Res. 70 (110th Congress), the concurrent resolutions on the budget for fiscal years 2008 and 2009. PART VI— HEALTH COVERAGE IMPROVEMENT SEC. 1899. SHORT TITLE.   This part may be cited as the “TAA Health Coverage Improvement Act of 2009”. SEC. 1899A. IMPROVEMENT OF THE AFFORDABILITY OF THE CREDIT. (a) Improvement of Affordability.— (1) In general.— Section 35(a) of the Internal Revenue Code of 1986 26 USC 35. (relating to credit for health insurance costs of eligible individuals) is amended by inserting “(80 percent in the case of eligible coverage months beginning before January 1, 2011)” after “65 percent”. (2) Conforming amendment.— Section 7527(b) of such Code 26 USC 7527. (relating to advance payment of credit for health insurance costs of eligible individuals) is amended by inserting “(80 percent in the case of eligible coverage months beginning before January 1, 2011)” after “65 percent”. (b) Effective Date.— The amendments made by this section shall apply to coverage months beginning on or after the first day of the first month beginning 60 days after the date of the enactment of this Act. SEC. 1899B. PAYMENT FOR MONTHLY PREMIUMS PAID PRIOR TO COMMENCEMENT OF ADVANCE PAYMENTS OF CREDIT. (a) Payment for Premiums Due Prior to Commencement of Advance Payments of Credit.— Section 7527 of the Internal Revenue Code of 1986 (relating to advance payment of credit for health insurance costs of eligible individuals) is amended by adding at the end the following new subsection: “(e) Payment for Premiums Due Prior to Commencement of Advance Payments.— In the case of eligible coverage months beginning before January 1, 2011— “(1) In general.— The program established under subsection (a) shall provide that the Secretary shall make 1 or more retroactive payments on behalf of a certified individual in an aggregate amount equal to 80 percent of the premiums for coverage of the taxpayer and qualifying family members under qualified health insurance for eligible coverage months (as defined in section 35(b)) occurring prior to the first month for which an advance payment is made on behalf of such individual under subsection (a). “(2) Reduction of payment for amounts received under national emergency grants.— The amount of any payment determined under paragraph (1) shall be reduced by the amount of any payment made to the taxpayer for the purchase of qualified health insurance under a national emergency grant pursuant to section 173(f) of the Workforce Investment Act of 1998 for a taxable year including the eligible coverage months described in paragraph (1).” . (b) Effective Date.— The amendments made by this section shall apply to coverage months beginning after December 31, 2008. (c) Transitional Rule.— The Secretary of the Treasury shall not be required to make any payments under section 7527(e) of the Internal Revenue Code of 1986, as added by this section, until after the date that is 6 months after the date of the enactment of this Act. SEC. 1899C. TAA RECIPIENTS NOT ENROLLED IN TRAINING PROGRAMS ELIGIBLE FOR CREDIT. (a) In General.— Paragraph (2) of section 35(c) of the Internal Revenue Code of 1986 (defining eligible TAA recipient) is amended to read as follows: “(2) Eligible taa recipient.— “(A) In general.— Except as provided in subparagraph (B), the term ‘eligible TAA recipient’ means, with respect to any month, any individual who is receiving for any day of such month a trade readjustment allowance under chapter 2 of title II of the Trade Act of 1974 or who would be eligible to receive such allowance if section 231 of such Act were applied without regard to subsection (a)(3)(B) of such section. An individual shall continue to be treated as an eligible TAA recipient during the first month that such individual would otherwise cease to be an eligible TAA recipient by reason of the preceding sentence. “(B) Special rule.— In the case of any eligible coverage month beginning after the date of the enactment of this paragraph and before January 1, 2011, the term ‘eligible TAA recipient’ means, with respect to any month, any individual who— “(i) is receiving for any day of such month a trade readjustment allowance under chapter 2 of title II of the Trade Act of 1974, “(ii) would be eligible to receive such allowance except that such individual is in a break in training provided under a training program approved under section 236 of such Act that exceeds the period specified in section 233(e) of such Act, but is within the period for receiving such allowances provided under section 233(a) of such Act, or “(iii) is receiving unemployment compensation (as defined in section 85(b)) for any day of such month and who would be eligible to receive such allowance for such month if section 231 of such Act were applied without regard to subsections (a)(3)(B) and (a)(5) thereof. An individual shall continue to be treated as an eligible TAA recipient during the first month that such individual would otherwise cease to be an eligible TAA recipient by reason of the preceding sentence.” . (b) Effective Date.— The amendment made by this section shall apply to coverage months beginning after the date of the enactment of this Act. SEC. 1899D. TAA PRE-CERTIFICATION PERIOD RULE FOR PURPOSES OF DETERMINING WHETHER THERE IS A 63-DAY LAPSE IN CREDITABLE COVERAGE. (a) IRC Amendment.— Section 9801(c)(2) of the Internal Revenue Code of 1986 26 USC 9801. (relating to not counting periods before significant breaks in creditable coverage) is amended by adding at the end the following new subparagraph: “(D) TAA-eligible individuals.— In the case of plan years beginning before January 1, 2011— “(i) TAA pre-certification period rule.— In the case of a TAA-eligible individual, the period beginning on the date the individual has a TAA-related loss of coverage and ending on the date which is 7 days after the date of the issuance by the Secretary (or by any person or entity designated by the Secretary) of a qualified health insurance costs credit eligibility certificate for such individual for purposes of section 7527 shall not be taken into account in determining the continuous period under subparagraph (A). “(ii) Definitions.— The terms ‘TAA-eligible individual’ and ‘TAA-related loss of coverage’ have the meanings given such terms in section 4980B(f)(5)(C)(iv).” . (b) ERISA Amendment.— Section 701(c)(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1181(c)(2)) is amended by adding at the end the following new subparagraph: “(C) TAA-eligible individuals.— In the case of plan years beginning before January 1, 2011— “(i) TAA pre-certification period rule.— In the case of a TAA-eligible individual, the period beginning on the date the individual has a TAA-related loss of coverage and ending on the date that is 7 days after the date of the issuance by the Secretary (or by any person or entity designated by the Secretary) of a qualified health insurance costs credit eligibility certificate for such individual for purposes of section 7527 of the Internal Revenue Code of 1986 shall not be taken into account in determining the continuous period under subparagraph (A). “(ii) Definitions.— The terms ‘TAA-eligible individual’ and ‘TAA-related loss of coverage’ have the meanings given such terms in section 605(b)(4).” . (c) PHSA Amendment.— Section 2701(c)(2) of the Public Health Service Act (42 U.S.C. 300gg(c)(2)) is amended by adding at the end the following new subparagraph: “(C) TAA-eligible individuals.— In the case of plan years beginning before January 1, 2011— “(i) TAA pre-certification period rule.— In the case of a TAA-eligible individual, the period beginning on the date the individual has a TAA-related loss of coverage and ending on the date that is 7 days after the date of the issuance by the Secretary (or by any person or entity designated by the Secretary) of a qualified health insurance costs credit eligibility certificate for such individual for purposes of section 7527 of the Internal Revenue Code of 1986 shall not be taken into account in determining the continuous period under subparagraph (A). “(ii) Definitions.— The terms ‘TAA-eligible individual’ and ‘TAA-related loss of coverage’ have the meanings given such terms in section 2205(b)(4).” . (d) Effective Date.— The amendments made by this section shall apply to plan years beginning after the date of the enactment of this Act. SEC. 1899E. CONTINUED QUALIFICATION OF FAMILY MEMBERS AFTER CERTAIN EVENTS. (a) In General.— Subsection (g) of section 35 26 USC 35. of such Code is amended by redesignating paragraph (9) as paragraph (10) and inserting after paragraph (8) the following new paragraph: “(9) Continued qualification of family members after certain events.— In the case of eligible coverage months beginning before January 1, 2011— “(A) Medicare eligibility.— In the case of any month which would be an eligible coverage month with respect to an eligible individual but for subsection (f)(2)(A), such month shall be treated as an eligible coverage month with respect to such eligible individual solely for purposes of determining the amount of the credit under this section with respect to any qualifying family members of such individual (and any advance payment of such credit under section 7527). This subparagraph shall only apply with respect to the first 24 months after such eligible individual is first entitled to the benefits described in subsection (f)(2)(A). “(B) Divorce.— In the case of the finalization of a divorce between an eligible individual and such individual’s spouse, such spouse shall be treated as an eligible individual for purposes of this section and section 7527 for a period of 24 months beginning with the date of such finalization, except that the only qualifying family members who may be taken into account with respect to such spouse are those individuals who were qualifying family members immediately before such finalization. “(C) Death.— In the case of the death of an eligible individual— “(i) any spouse of such individual (determined at the time of such death) shall be treated as an eligible individual for purposes of this section and section 7527 for a period of 24 months beginning with the date of such death, except that the only qualifying family members who may be taken into account with respect to such spouse are those individuals who were qualifying family members immediately before such death, and “(ii) any individual who was a qualifying family member of the decedent immediately before such death (or, in the case of an individual to whom paragraph (4) applies, the taxpayer to whom the deduction under section 151 is allowable) shall be treated as an eligible individual for purposes of this section and section 7527 for a period of 24 months beginning with the date of such death, except that in determining the amount of such credit only such qualifying family member may be taken into account.” . (b) Conforming Amendment.— Section 173(f) of the Workforce Investment Act of 1998 (29 U.S.C. 2918(f)) is amended by adding at the end the following: “(8) Continued qualification of family members after certain events.— In the case of eligible coverage months beginning before January 1, 2011— “(A) Medicare eligibility.— In the case of any month which would be an eligible coverage month with respect to an eligible individual but for paragraph (7)(B)(i), such month shall be treated as an eligible coverage month with respect to such eligible individual solely for purposes of determining the eligibility of qualifying family members of such individual under this subsection. Applicability. This subparagraph shall only apply with respect to the first 24 months after such eligible individual is first entitled to the benefits described in paragraph (7)(B)(i). “(B) Divorce.— In the case of the finalization of a divorce between an eligible individual and such individual’s spouse, such spouse shall be treated as an eligible individual for purposes of this subsection for a period of 24 months beginning with the date of such finalization, except that the only qualifying family members who may be taken into account with respect to such spouse are those individuals who were qualifying family members immediately before such finalization. “(C) Death.— In the case of the death of an eligible individual— “(i) any spouse of such individual (determined at the time of such death) shall be treated as an eligible individual for purposes of this subsection for a period of 24 months beginning with the date of such death, except that the only qualifying family members who may be taken into account with respect to such spouse are those individuals who were qualifying family members immediately before such death, and “(ii) any individual who was a qualifying family member of the decedent immediately before such death shall be treated as an eligible individual for purposes this subsection for a period of 24 months beginning with the date of such death, except that no qualifying family members may be taken into account with respect to such individual.” . (c) Effective Date.— The amendments made by this section shall apply to months beginning after December 31, 2009. SEC. 1899F. EXTENSION OF COBRA BENEFITS FOR CERTAIN TAA-ELIGIBLE INDIVIDUALS AND PBGC RECIPIENTS. (a) ERISA Amendments.— Section 602(2)(A) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1162(2)(A)) is amended— (1) by moving clause (v) to after clause (iv) and before the flush left sentence beginning with “In the case of a qualified beneficiary”; (2) by striking “In the case of a qualified beneficiary” and inserting the following: “(vi) Special rule for disability.— In the case of a qualified beneficiary” ; and (3) by redesignating clauses (v) and (vi), as amended by paragraphs (1) and (2), as clauses (vii) and (viii), respectively, and by inserting after clause (iv) the following new clauses: “(v) Special rule for pbgc recipients.— In the case of a qualifying event described in section 603(2) with respect to a covered employee who (as of such qualifying event) has a nonforfeitable right to a benefit any portion of which is to be paid by the Pension Benefit Guaranty Corporation under title IV, notwithstanding clause (i) or (ii), the date of the death of the covered employee, or in the case of the surviving spouse or dependent children of the covered employee, 24 months after the date of the death of the covered employee. The preceding sentence shall not require any period of coverage to extend beyond December 31, 2010. “(vi) Special rule for taa-eligible individuals.— In the case of a qualifying event described in section 603(2) with respect to a covered employee who is (as of the date that the period of coverage would, but for this clause or clause (vii), otherwise terminate under clause (i) or (ii)) a TAA-eligible individual (as defined in section 605(b)(4)(B)), the period of coverage shall not terminate by reason of clause (i) or (ii), as the case may be, before the later of the date specified in such clause or the date on which such individual ceases to be such a TAA-eligible individual. The preceding sentence shall not require any period of coverage to extend beyond December 31, 2010.” . (b) IRC Amendments.— Clause (i) of section 4980B(f)(2)(B) of the Internal Revenue Code of 1986 26 USC 4980B. is amended— (1) by striking “In the case of a qualified beneficiary” and inserting the following: “(VI) Special rule for disability.— In the case of a qualified beneficiary” , and (2) by redesignating subclauses (V) and (VI), as amended by paragraph (1), as subclauses (VII) and (VIII), respectively, and by inserting after clause (IV) the following new subclauses: “(V) Special rule for pbgc recipients.— In the case of a qualifying event described in paragraph (3)(B) with respect to a covered employee who (as of such qualifying event) has a nonforfeitable right to a benefit any portion of which is to be paid by the Pension Benefit Guaranty Corporation under title IV of the Employee Retirement Income Security Act of 1974, notwithstanding subclause (I) or (II), the date of the death of the covered employee, or in the case of the surviving spouse or dependent children of the covered employee, 24 months after the date of the death of the covered employee. The preceding sentence shall not require any period of coverage to extend beyond December 31, 2010. “(VI) Special rule for taa-eligible individuals.— In the case of a qualifying event described in paragraph (3)(B) with respect to a covered employee who is (as of the date that the period of coverage would, but for this subclause or subclause (VII), otherwise terminate under subclause (I) or (II)) a TAA-eligible individual (as defined in paragraph (5)(C)(iv)(II)), the period of coverage shall not terminate by reason of subclause (I) or (II), as the case may be, before the later of the date specified in such subclause or the date on which such individual ceases to be such a TAA-eligible individual. The preceding sentence shall not require any period of coverage to extend beyond December 31, 2010.” . (c) PHSA Amendments.— Section 2202(2)(A) of the Public Health Service Act (42 U.S.C. 300bb-2(2)(A)) is amended— (1) by striking “In the case of a qualified beneficiary” and inserting the following: “(v) Special rule for disability.— In the case of a qualified beneficiary” ; and (2) by redesignating clauses (iv) and (v), as amended by paragraph (1), as clauses (v) and (vi), respectively, and by inserting after clause (iii) the following new clause: “(iv) Special rule for taa-eligible individuals.— In the case of a qualifying event described in section 2203(2) with respect to a covered employee who is (as of the date that the period of coverage would, but for this clause or clause (v), otherwise terminate under clause (i) or (ii)) a TAA-eligible individual (as defined in section 2205(b)(4)(B)), the period of coverage shall not terminate by reason of clause (i) or (ii), as the case may be, before the later of the date specified in such clause or the date on which such individual ceases to be such a TAA-eligible individual. The preceding sentence shall not require any period of coverage to extend beyond December 31, 2010.” . (d) Effective Date.— The amendments made by this section shall apply to periods of coverage which would (without regard to the amendments made by this section) end on or after the date of the enactment of this Act. SEC. 1899G. ADDITION OF COVERAGE THROUGH VOLUNTARY EMPLOYEES’ BENEFICIARY ASSOCIATIONS. (a) In General.— Paragraph (1) of section 35(e) of the Internal Revenue Code of 1986 26 USC 35. is amended by adding at the end the following new subparagraph: “(K) In the case of eligible coverage months beginning before January 1, 2011, coverage under an employee benefit plan funded by a voluntary employees’ beneficiary association (as defined in section 501(c)(9)) established pursuant to an order of a bankruptcy court, or by agreement with an authorized representative, as provided in section 1114 of title 11, United States Code.” . (b) Effective Date.— The amendments made by this section shall apply to coverage months beginning after the date of the enactment of this Act. SEC. 1899H. NOTICE REQUIREMENTS. (a) In General.— Subsection (d) of section 7527 of the Internal Revenue Code of 1986 (relating to qualified health insurance costs credit eligibility certificate) is amended to read as follows: “(d) Qualified Health Insurance Costs Eligibility Certificate.— “(1) In general.— For purposes of this section, the term ‘qualified health insurance costs eligibility certificate’ means any written statement that an individual is an eligible individual (as defined in section 35(c)) if such statement provides such information as the Secretary may require for purposes of this section and— “(A) in the case of an eligible TAA recipient (as defined in section 35(c)(2)) or an eligible alternative TAA recipient (as defined in section 35(c)(3)), is certified by the Secretary of Labor (or by any other person or entity designated by the Secretary), or “(B) in the case of an eligible PBGC pension recipient (as defined in section 35(c)(4)), is certified by the Pension Benefit Guaranty Corporation (or by any other person or entity designated by the Secretary). “(2) Inclusion of certain information.— In the case of any statement described in paragraph (1) which is issued before January 1, 2011, such statement shall not be treated as a qualified health insurance costs credit eligibility certificate unless such statement includes— “(A) the name, address, and telephone number of the State office or offices responsible for providing the individual with assistance with enrollment in qualified health insurance (as defined in section 35(e)), “(B) a list of the coverage options that are treated as qualified health insurance (as so defined) by the State in which the individual resides, and “(C) in the case of a TAA-eligible individual (as defined in section 4980B(f)(5)(C)(iv)(II)), a statement informing the individual that the individual has 63 days from the date that is 7 days after the date of the issuance of such certificate to enroll in such insurance without a lapse in creditable coverage (as defined in section 9801(c)).” . (b) Effective Date.— The amendment made by this section shall apply to certificates issued after the date that is 6 months after the date of the enactment of this Act. SEC. 1899I. SURVEY AND REPORT ON ENHANCED HEALTH COVERAGE TAX CREDIT PROGRAM. (a) Survey.— (1) In general.— The Secretary of the Treasury shall conduct a biennial survey of eligible individuals (as defined in section 35(c) of the Internal Revenue Code of 1986) relating to the health coverage tax credit under section 35 of the Internal Revenue Code of 1986 (hereinafter in this section referred to as the “health coverage tax credit”). (2) Information obtained.— The survey conducted under subsection (a) shall obtain the following information: (A) HCTC participants.— In the case of eligible individuals receiving the health coverage tax credit (including individuals participating in the health coverage tax credit program under section 7527 of such Code, hereinafter in this section referred to as the “HCTC program”)— (i) demographic information of such individuals, including income and education levels, (ii) satisfaction of such individuals with the enrollment process in the HCTC program, (iii) satisfaction of such individuals with available health coverage options under the credit, including level of premiums, benefits, deductibles, cost-sharing requirements, and the adequacy of provider networks, and (iv) any other information that the Secretary determines is appropriate. (B) Non-HCTC participants.— In the case of eligible individuals not receiving the health coverage tax credit— (i) demographic information of each individual, including income and education levels, (ii) whether the individual was aware of the health coverage tax credit or the HCTC program, (iii) the reasons the individual has not enrolled in the HCTC program, including whether such reasons include the burden of the process of enrollment and the affordability of coverage, (iv) whether the individual has health insurance coverage, and, if so, the source of such coverage, and (v) any other information that the Secretary determines is appropriate. (3) Report.— Not later than December 31 of each year in which a survey is conducted under paragraph (1) (beginning in 2010), the Secretary of the Treasury shall report to the Committee on Finance and the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Ways and Means, the Committee on Education and Labor, and the Committee on Energy and Commerce of the House of Representatives the findings of the most recent survey conducted under paragraph (1). (b) Report.— Not later than October 1 of each year (beginning in 2010), the Secretary of the Treasury (after consultation with the Secretary of Health and Human Services, and, in the case of the information required under paragraph (7), the Secretary of Labor) shall report to the Committee on Finance and the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Ways and Means, the Committee on Education and Labor, and the Committee on Energy and Commerce of the House of Representatives the following information with respect to the most recent taxable year ending before such date: (1) In each State and nationally— (A) the total number of eligible individuals (as defined in section 35(c) of the Internal Revenue Code of 1986) and the number of eligible individuals receiving the health coverage tax credit, (B) the total number of such eligible individuals who receive an advance payment of the health coverage tax credit through the HCTC program, (C) the average length of the time period of the participation of eligible individuals in the HCTC program, and (D) the total number of participating eligible individuals in the HCTC program who are enrolled in each category of coverage as described in section 35(e)(1) of such Code, with respect to each category of eligible individuals described in section 35(c)(1) of such Code. (2) In each State and nationally, an analysis of— (A) the range of monthly health insurance premiums, for self-only coverage and for family coverage, for individuals receiving the health coverage tax credit, and (B) the average and median monthly health insurance premiums, for self-only coverage and for family coverage, for individuals receiving the health coverage tax credit, with respect to each category of coverage as described in section 35(e)(1) of such Code. (3) In each State and nationally, an analysis of the following information with respect to the health insurance coverage of individuals receiving the health coverage tax credit who are enrolled in coverage described in subparagraphs (B) through (H) of section 35(e)(1) of such Code: (A) Deductible amounts. (B) Other out-of-pocket cost-sharing amounts. (C) A description of any annual or lifetime limits on coverage or any other significant limits on coverage services, or benefits. The information required under this paragraph shall be reported with respect to each category of coverage described in such subparagraphs. (4) In each State and nationally, the gender and average age of eligible individuals (as defined in section 35(c) of such Code) who receive the health coverage tax credit, in each category of coverage described in section 35(e)(1) of such Code, with respect to each category of eligible individuals described in such section. (5) The steps taken by the Secretary of the Treasury to increase the participation rates in the HCTC program among eligible individuals, including outreach and enrollment activities. (6) The cost of administering the HCTC program by function, including the cost of subcontractors, and recommendations on ways to reduce administrative costs, including recommended statutory changes. (7) The number of States applying for and receiving national emergency grants under section 173(f) of the Workforce Investment Act of 1998 (29 U.S.C. 2918(f)), the activities funded by such grants on a State-by-State basis, and the time necessary for application approval of such grants. SEC. 1899J. AUTHORIZATION OF APPROPRIATIONS.   There is authorized to be appropriated $80,000,000 for the period of fiscal years 2009 through 2010 to implement the amendments made by, and the provisions of, sections 1899 through 1899I of this part. SEC. 1899K. EXTENSION OF NATIONAL EMERGENCY GRANTS. (a) In General.— Section 173(f) of the Workforce Investment Act of 1998 (29 U.S.C. 2918(f)), as amended by this Act, is amended— (1) by striking paragraph (1) and inserting the following new paragraph: “(1) Use of funds.— “(A) Health insurance coverage for eligible individuals in order to obtain qualified health insurance that has guaranteed issue and other consumer protections.— Funds made available to a State or entity under paragraph (4)(A) of subsection (a) may be used to provide an eligible individual described in paragraph (4)(C) and such individual’s qualifying family members with health insurance coverage for the 3-month period that immediately precedes the first eligible coverage month (as defined in section 35(b) of the Internal Revenue Code of 1986) in which such eligible individual and such individual’s qualifying family members are covered by qualified health insurance that meets the requirements described in clauses (i) through (v) of section 35(e)(2)(A) of the Internal Revenue Code of 1986 (or such longer minimum period as is necessary in order for such eligible individual and such individual’s qualifying family members to be covered by qualified health insurance that meets such requirements). “(B) Additional uses.— Funds made available to a State or entity under paragraph (4)(A) of subsection (a) may be used by the State or entity for the following: “(i) Health insurance coverage.— To assist an eligible individual and such individual’s qualifying family members with enrolling in health insurance coverage and qualified health insurance or paying premiums for such coverage or insurance. “(ii) Administrative expenses and start-up expenses to establish group health plan coverage options for qualified health insurance.— To pay the administrative expenses related to the enrollment of eligible individuals and such individuals’ qualifying family members in health insurance coverage and qualified health insurance, including— “(I) eligibility verification activities; “(II) the notification of eligible individuals of available health insurance and qualified health insurance options; “(III) processing qualified health insurance costs credit eligibility certificates provided for under section 7527 of the Internal Revenue Code of 1986; “(IV) providing assistance to eligible individuals in enrolling in health insurance coverage and qualified health insurance; “(V) the development or installation of necessary data management systems; and “(VI) any other expenses determined appropriate by the Secretary, including start-up costs and on going administrative expenses, in order for the State to treat the coverage described in subparagraphs (C) through (H) of section 35(e)(1) of the Internal Revenue Code of 1986 as qualified health insurance under that section. “(iii) Outreach.— To pay for outreach to eligible individuals to inform such individuals of available health insurance and qualified health insurance options, including outreach consisting of notice to eligible individuals of such options made available after the date of enactment of this clause and direct assistance to help potentially eligible individuals and such individual’s qualifying family members qualify and remain eligible for the credit established under section 35 of the Internal Revenue Code of 1986 and advance payment of such credit under section 7527 of such Code. “(iv) Bridge funding.— To assist potentially eligible individuals to purchase qualified health insurance coverage prior to issuance of a qualified health insurance costs credit eligibility certificate under section 7527 of the Internal Revenue Code of 1986 and commencement of advance payment, and receipt of expedited payment, under subsections (a) and (e), respectively, of that section. “(C) Rule of construction.— The inclusion of a permitted use under this paragraph shall not be construed as prohibiting a similar use of funds permitted under subsection (g).” ; and (2) by striking paragraph (2) and inserting the following new paragraph: “(2) Qualified health insurance.— For purposes of this subsection and subsection (g), the term ‘qualified health insurance’ has the meaning given that term in section 35(e) of the Internal Revenue Code of 1986.” . (b) Funding.— Section 174(c)(1) of the Workforce Investment Act of 1998 (29 U.S.C. 2919(c)(1)) is amended— (1) in the paragraph heading, by striking “Authorization and appropriation for fiscal year 2002” and inserting “Appropriations”; and (2) by striking subparagraph (A) and inserting the following new subparagraph: “(A) to carry out subsection (a)(4)(A) of section 173— “(i) $10,000,000 for fiscal year 2002; and “(ii) $150,000,000 for the period of fiscal years 2009 through 2010; and” . SEC. 1899L. GAO STUDY AND REPORT. (a) Study.— The Comptroller General of the United States shall conduct a study regarding the health insurance tax credit allowed under section 35 of the Internal Revenue Code of 1986. (b) Report.— Not later than March 1, 2010, the Comptroller General shall submit a report to Congress regarding the results of the study conducted under subsection (a). Such report shall include an analysis of— (1) the administrative costs— (A) of the Federal Government with respect to such credit and the advance payment of such credit under section 7527 of such Code, and (B) of providers of qualified health insurance with respect to providing such insurance to eligible individuals and their qualifying family members, (2) the health status and relative risk status of eligible individuals and qualifying family members covered under such insurance, (3) participation in such credit and the advance payment of such credit by eligible individuals and their qualifying family members, including the reasons why such individuals did or did not participate and the effect of the amendments made by this part on such participation, and (4) the extent to which eligible individuals and their qualifying family members— (A) obtained health insurance other than qualifying health insurance, or (B) went without health insurance coverage. (c) Access to Records.— For purposes of conducting the study required under this section, the Comptroller General and any of his duly authorized representatives shall have access to, and the right to examine and copy, all documents, records, and other recorded information— (1) within the possession or control of providers of qualified health insurance, and (2) determined by the Comptroller General (or any such representative) to be relevant to the study. The Comptroller General shall not disclose the identity of any provider of qualified health insurance or any eligible individual in making any information obtained under this section available to the public. (d) Definitions.— Any term which is defined in section 35 of the Internal Revenue Code of 1986 shall have the same meaning when used in this section.

   Effective date note
   Except as otherwise provided and subject to certain applicability provisions, amendment by Pub. L. 111–5 effective upon the expiration of the 90-day period beginning on Feb. 17, 2009, see section 1891 of Pub. L. 111–5, set out as a note under section 2271 of this title. Section 1893 of Pub. L. 111–5, formerly set out as a Termination Date of 2009 Amendment note preceding section 2271 of this title, which provided that, except as otherwise provided, amendment by Pub. L. 111–5 not applicable on or after Feb. 13, 2011, and that this section be applied and administered beginning Feb. 13, 2011, as if amendment by Pub. L. 111–5 had never been enacted, was repealed by Pub. L. 112–40, title II, § 201(a), Oct. 21, 2011, 125 Stat. 403, effective Oct. 21, 2011. See Codification note above.

7. 2009

   American Recovery and Reinvestment Act of 2009

   Pub. L. 111–5 div. B title I · 123 Stat. 115

   Added · 19 U.S.C. § 2273(e)

   Pub. L. 111–5, §§ 1803(4), 1893, temporarily added subsec. (e). See Codification note above and Effective and Termination Dates of 2009 Amendment note below

   Source evidence

   Code amendment note
   Subsec. (e). Pub. L. 111–5, §§ 1803(4), 1893, temporarily added subsec. (e). See Codification note above and Effective and Termination Dates of 2009 Amendment note below.

   Enacted provision · exact public law
   TITLE I— TAX PROVISIONS SEC. 1000. SHORT TITLE, ETC. (a) Short Title.— This 26 USC 1 note. title may be cited as the “American Recovery and Reinvestment Tax Act of 2009”. (b) Reference.— Except 26 USC 1 et seq. as otherwise expressly provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. (c) Table of Contents.— The table of contents for this title is as follows: TITLE I— TAX PROVISIONS Sec. 1000.  Short title, etc. Subtitle A— Tax Relief for Individuals and Families PART I— General Tax Relief Sec. 1001.  Making work pay credit. Sec. 1002.  Temporary increase in earned income tax credit. Sec. 1003.  Temporary increase of refundable portion of child credit. Sec. 1004.  American opportunity tax credit. Sec. 1005.  Computer technology and equipment allowed as a qualified higher education expense for section 529 accounts in 2009 and 2010. Sec. 1006.  Extension of and increase in first-time homebuyer credit; waiver of requirement to repay. Sec. 1007.  Suspension of tax on portion of unemployment compensation. Sec. 1008.  Additional deduction for State sales tax and excise tax on the purchase of certain motor vehicles. PART II— Alternative Minimum Tax Relief Sec. 1011.  Extension of alternative minimum tax relief for nonrefundable personal credits. Sec. 1012.  Extension of increased alternative minimum tax exemption amount. Subtitle B— Energy Incentives PART I— Renewable Energy Incentives Sec. 1101.  Extension of credit for electricity produced from certain renewable resources. Sec. 1102.  Election of investment credit in lieu of production credit. Sec. 1103.  Repeal of certain limitations on credit for renewable energy property. Sec. 1104.  Coordination with renewable energy grants. PART II— Increased Allocations of New Clean Renewable Energy Bonds and Qualified Energy Conservation Bonds Sec. 1111.  Increased limitation on issuance of new clean renewable energy bonds. Sec. 1112.  Increased limitation on issuance of qualified energy conservation bonds. PART III— Energy Conservation Incentives Sec. 1121.  Extension and modification of credit for nonbusiness energy property. Sec. 1122.  Modification of credit for residential energy efficient property. Sec. 1123.  Temporary increase in credit for alternative fuel vehicle refueling property. PART IV— Modification of Credit for Carbon Dioxide Sequestration Sec. 1131.  Application of monitoring requirements to carbon dioxide used as a tertiary injectant. PART V— Plug-in Electric Drive Motor Vehicles Sec. 1141.  Credit for new qualified plug-in electric drive motor vehicles. Sec. 1142.  Credit for certain plug-in electric vehicles. Sec. 1143.  Conversion kits. Sec. 1144.  Treatment of alternative motor vehicle credit as a personal credit allowed against AMT. PART VI— Parity for Transportation Fringe Benefits Sec. 1151.  Increased exclusion amount for commuter transit benefits and transit passes. Subtitle C— Tax Incentives for Business PART I— Temporary Investment Incentives Sec. 1201.  Special allowance for certain property acquired during 2009. Sec. 1202.  Temporary increase in limitations on expensing of certain depreciable business assets. PART II— Small Business Provisions Sec. 1211.  5-year carryback of operating losses of small businesses. Sec. 1212.  Decreased required estimated tax payments in 2009 for certain small businesses. PART III— Incentives for New Jobs Sec. 1221.  Incentives to hire unemployed veterans and disconnected youth. PART IV— Rules Relating to Debt Instruments Sec. 1231.  Deferral and ratable inclusion of income arising from business indebtedness discharged by the reacquisition of a debt instrument. Sec. 1232.  Modifications of rules for original issue discount on certain high yield obligations. PART V— Qualified Small Business Stock Sec. 1241.  Special rules applicable to qualified small business stock for 2009 and 2010. PART VI— S Corporations Sec. 1251.  Temporary reduction in recognition period for built-in gains tax. PART VII— Rules Relating to Ownership Changes Sec. 1261.  Clarification of regulations related to limitations on certain built-in losses following an ownership change. Sec. 1262.  Treatment of certain ownership changes for purposes of limitations on net operating loss carryforwards and certain built-in losses. Subtitle D— Manufacturing Recovery Provisions Sec. 1301.  Temporary expansion of availability of industrial development bonds to facilities manufacturing intangible property. Sec. 1302.  Credit for investment in advanced energy facilities. Subtitle E— Economic Recovery Tools Sec. 1401.  Recovery zone bonds. Sec. 1402.  Tribal economic development bonds. Sec. 1403.  Increase in new markets tax credit. Sec. 1404.  Coordination of low-income housing credit and low-income housing grants. Subtitle F— Infrastructure Financing Tools PART I— Improved Marketability for Tax-Exempt Bonds Sec. 1501.  De minimis safe harbor exception for tax-exempt interest expense of financial institutions. Sec. 1502.  Modification of small issuer exception to tax-exempt interest expense allocation rules for financial institutions. Sec. 1503.  Temporary modification of alternative minimum tax limitations on tax-exempt bonds. Sec. 1504.  Modification to high speed intercity rail facility bonds. PART II— Delay in Application of Withholding Tax on Government Contractors Sec. 1511.  Delay in application of withholding tax on government contractors. PART III— Tax Credit Bonds for Schools Sec. 1521.  Qualified school construction bonds. Sec. 1522.  Extension and expansion of qualified zone academy bonds. PART IV— Build America Bonds Sec. 1531.  Build America bonds. PART V— Regulated Investment Companies Allowed to Pass-Thru Tax Credit Bond Credits Sec. 1541.  Regulated investment companies allowed to pass-thru tax credit bond credits. Subtitle G— Other Provisions Sec. 1601.  Application of certain labor standards to projects financed with certain tax-favored bonds. Sec. 1602.  Grants to States for low-income housing projects in lieu of low-income housing credit allocations for 2009. Sec. 1603.  Grants for specified energy property in lieu of tax credits. Sec. 1604.  Increase in public debt limit. Subtitle H— Prohibition on Collection of Certain Payments Made Under the Continued Dumping and Subsidy Offset Act of 2000 Sec. 1701.  Prohibition on collection of certain payments made under the Continued Dumping and Subsidy Offset Act of 2000. Subtitle I— Trade Adjustment Assistance Sec. 1800.  Short title. PART I— Trade Adjustment Assistance for Workers subpart a— trade adjustment assistance for service sector workers Sec. 1801.  Extension of trade adjustment assistance to service sector and public agency workers; shifts in production. Sec. 1802.  Separate basis for certification. Sec. 1803.  Determinations by Secretary of Labor. Sec. 1804.  Monitoring and reporting relating to service sector. subpart b— industry notifications following certain affirmative determinations Sec. 1811.  Notifications following certain affirmative determinations. Sec. 1812.  Notification to Secretary of Commerce. subpart c— program benefits Sec. 1821.  Qualifying Requirements for Workers. Sec. 1822.  Weekly amounts. Sec. 1823.  Limitations on trade readjustment allowances; allowances for extended training and breaks in training. Sec. 1824.  Special rules for calculation of eligibility period. Sec. 1825.  Application of State laws and regulations on good cause for waiver of time limits or late filing of claims. Sec. 1826.  Employment and case management services. Sec. 1827.  Administrative expenses and employment and case management services. Sec. 1828.  Training funding. Sec. 1829.  Prerequisite education; approved training programs. Sec. 1830.  Pre-layoff and part-time training. Sec. 1831.  On-the-job training. Sec. 1832.  Eligibility for unemployment insurance and program benefits while in training. Sec. 1833.  Job search and relocation allowances. subpart d— reemployment trade adjustment assistance program Sec. 1841.  Reemployment trade adjustment assistance program. subpart e— other matters Sec. 1851.  Office of Trade Adjustment Assistance. Sec. 1852.  Accountability of State agencies; collection and publication of program data; agreements with States. Sec. 1853.  Verification of eligibility for program benefits. Sec. 1854.  Collection of data and reports; information to workers. Sec. 1855.  Fraud and recovery of overpayments. Sec. 1856.  Sense of Congress on application of trade adjustment assistance. Sec. 1857.  Consultations in promulgation of regulations. Sec. 1858.  Technical corrections. PART II— Trade Adjustment Assistance for Firms Sec. 1861.  Expansion to service sector firms. Sec. 1862.  Modification of requirements for certification. Sec. 1863.  Basis for determinations. Sec. 1864.  Oversight and administration; authorization of appropriations. Sec. 1865.  Increased penalties for false statements. Sec. 1866.  Annual report on trade adjustment assistance for firms. Sec. 1867.  Technical corrections. PART III— Trade Adjustment Assistance for Communities Sec. 1871.  Purpose. Sec. 1872.  Trade adjustment assistance for communities. Sec. 1873.  Conforming amendments. PART IV— Trade Adjustment Assistance for Farmers Sec. 1881.  Definitions. Sec. 1882.  Eligibility. Sec. 1883.  Benefits. Sec. 1884.  Report. Sec. 1885.  Fraud and recovery of overpayments. Sec. 1886.  Determination of increases of imports for certain fishermen. Sec. 1887.  Extension of trade adjustment assistance for farmers. PART V— General Provisions Sec. 1891.  Effective date. Sec. 1892.  Extension of trade adjustment assistance programs. Sec. 1893.  Termination; related provisions. Sec. 1894.  Government Accountability Office report. Sec. 1895.  Emergency designation. PART VI— Health Coverage Improvement Sec. 1899.  Short title. Sec. 1899A.  Improvement of the affordability of the credit. Sec. 1899B.  Payment for monthly premiums paid prior to commencement of advance payments of credit. Sec. 1899C.  TAA recipients not enrolled in training programs eligible for credit. Sec. 1899D.  TAA pre-certification period rule for purposes of determining whether there is a 63-day lapse in creditable coverage. Sec. 1899E.  Continued qualification of family members after certain events. Sec. 1899F.  Extension of COBRA benefits for certain TAA-eligible individuals and PBGC recipients. Sec. 1899G.  Addition of coverage through voluntary employees’ beneficiary associations. Sec. 1899H.  Notice requirements. Sec. 1899I.  Survey and report on enhanced health coverage tax credit program. Sec. 1899J.  Authorization of appropriations. Sec. 1899K.  Extension of national emergency grants. Sec. 1899L.  GAO study and report. Subtitle A— Tax Relief for Individuals and Families PART I— GENERAL TAX RELIEF SEC. 1001. MAKING WORK PAY CREDIT. (a) In General.— Subpart C of part IV of subchapter A of chapter 1 is amended by inserting after section 36 the following new section: “SEC. 36A. MAKING WORK PAY CREDIT. “(a) Allowance of Credit.— In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the lesser of— “(1) 6.2 percent of earned income of the taxpayer, or “(2) $400 ($800 in the case of a joint return). “(b) Limitation Based on Modified Adjusted Gross Income.— “(1) In general.— The amount allowable as a credit under subsection (a) (determined without regard to this paragraph and subsection (c)) for the taxable year shall be reduced (but not below zero) by 2 percent of so much of the taxpayer’s modified adjusted gross income as exceeds $75,000 ($150,000 in the case of a joint return). “(2) Modified adjusted gross income.— For purposes of subparagraph (A), the term ‘modified adjusted gross income’ means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933. “(c) Reduction for Certain Other Payments.— The credit allowed under subsection (a) for any taxable year shall be reduced by the amount of any payments received by the taxpayer during such taxable year under section 2201, and any credit allowed to the taxpayer under section 2202, of the American Recovery and Reinvestment Tax Act of 2009. “(d) Definitions and Special Rules.— For purposes of this section— “(1) Eligible individual.— “(A) In general.— The term ‘eligible individual’ means any individual other than— “(i) any nonresident alien individual, “(ii) any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, and “(iii) an estate or trust. “(B) Identification number requirement.— Such term shall not include any individual who does not include on the return of tax for the taxable year— “(i) such individual’s social security account number, and “(ii) in the case of a joint return, the social security account number of one of the taxpayers on such return. For purposes of the preceding sentence, the social security account number shall not include a TIN issued by the Internal Revenue Service. “(2) Earned income.— The term ‘earned income’ has the meaning given such term by section 32(c)(2), except that such term shall not include net earnings from self-employment which are not taken into account in computing taxable income. For purposes of the preceding sentence, any amount excluded from gross income by reason of section 112 shall be treated as earned income which is taken into account in computing taxable income for the taxable year. “(e) Termination.— This section shall not apply to taxable years beginning after December 31, 2010.” . (b) Treatment of Possessions.— (1) Payments to possessions.— (A) Mirror code possession.— The Effective dates. Secretary of the Treasury shall pay to each possession of the United States with a mirror code tax system amounts equal to the loss to that possession by reason of the amendments made by this section with respect to taxable years beginning in 2009 and 2010. Such amounts shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession. (B) Other possessions.— The Effective dates. Secretary of the Treasury shall pay to each possession of the United States which does not have a mirror code tax system amounts estimated by the Secretary of the Treasury as being equal to the aggregate benefits that would have been provided to residents of such possession by reason of the amendments made by this section for taxable years beginning in 2009 and 2010 if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply with respect to any possession of the United States unless such possession has a plan, which has been approved by the Secretary of the Treasury, under which such possession will promptly distribute such payments to the residents of such possession. (2) Coordination with credit allowed against united states income taxes.— No credit shall be allowed against United States income taxes for any taxable year under section 36A of the Internal Revenue Code of 1986 (as added by this section) to any person— (A) to whom a credit is allowed against taxes imposed by the possession by reason of the amendments made by this section for such taxable year, or (B) who is eligible for a payment under a plan described in paragraph (1)(B) with respect to such taxable year. (3) Definitions and special rules.— (A) Possession of the united states.— For purposes of this subsection, the term “possession of the United States” includes the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands. (B) Mirror code tax system.— For purposes of this subsection, the term “mirror code tax system” means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States. (C) Treatment of payments.— For purposes of section 1324(b)(2) of title 31, United States Code, the payments under this subsection shall be treated in the same manner as a refund due from the credit allowed under section 36A of the Internal Revenue Code of 1986 (as added by this section). (c) Refunds Disregarded in the Administration of Federal Programs and Federally Assisted Programs.— Any credit or refund allowed or made to any individual by reason of section 36A of the Internal Revenue Code of 1986 (as added by this section) or by reason of subsection (b) of this section shall not be taken into account as income and shall not be taken into account as resources for the month of receipt and the following 2 months, for purposes of determining the eligibility of such individual or any other individual for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds. (d) Authority Relating to Clerical Errors.— Section 6213(g)(2) is 26 USC 6213. amended by striking “and” at the end of subparagraph (L)(ii), by striking the period at the end of subparagraph (M) and inserting “, and”, and by adding at the end the following new subparagraph: “(N) an omission of the reduction required under section 36A(c) with respect to the credit allowed under section 36A or an omission of the correct social security account number required under section 36A(d)(1)(B).” . (e) Conforming Amendments.— (1) Section 6211(b)(4)(A) is amended by inserting “36A,” after “36,”. (2) Section 1324(b)(2) of title 31, United States Code, is amended by inserting “36A,” after “36,”. (3) The table of sections for subpart C of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 36 the following new item: “Sec. 36A.  Making work pay credit.”. (f) Effective Date.— This section, and the amendments made by this section, shall apply to taxable years beginning after December 31, 2008. SEC. 1002. TEMPORARY INCREASE IN EARNED INCOME TAX CREDIT. (a) In General.— Subsection (b) of section 32 26 USC 32. is amended by adding at the end the following new paragraph: “(3) Special rules for 2009 and 2010.— In the case of any taxable year beginning in 2009 or 2010— “(A) Increased credit percentage for 3 or more qualifying children.— In the case of a taxpayer with 3 or more qualifying children, the credit percentage is 45 percent. “(B) Reduction of marriage penalty.— “(i) In general.— The dollar amount in effect under paragraph (2)(B) shall be $5,000. “(ii) Inflation adjustment.— In the case of any taxable year beginning in 2010, the $5,000 amount in clause (i) 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 2008’ for ‘calendar year 1992’ in subparagraph (B) thereof. “(iii) Rounding.— Subparagraph Applicability. (A) of subsection (j)(2) shall apply after taking into account any increase under clause (ii).” . (b) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 2008. SEC. 1003. TEMPORARY INCREASE OF REFUNDABLE PORTION OF CHILD CREDIT. (a) In General.— Paragraph (4) of section 24(d) 26 USC 24. is amended to read as follows: “(4) Special rule for 2009 and 2010.— Notwithstanding paragraph (3), in the case of any taxable year beginning in 2009 or 2010, the dollar amount in effect for such taxable year under paragraph (1)(B)(i) shall be $3,000.” . (b) Effective Date.— The 26 USC 24 note. amendments made by this section shall apply to taxable years beginning after December 31, 2008. SEC. 1004. AMERICAN OPPORTUNITY TAX CREDIT. (a) In General.— Section 25A (relating to Hope scholarship credit) is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) the following new subsection: “(i) American Opportunity Tax Credit.— In the case of any taxable year beginning in 2009 or 2010— “(1) Increase in credit.— The Hope Scholarship Credit shall be an amount equal to the sum of— “(A) 100 percent of so much of the qualified tuition and related expenses paid by the taxpayer during the taxable year (for education furnished to the eligible student during any academic period beginning in such taxable year) as does not exceed $2,000, plus “(B) 25 percent of such expenses so paid as exceeds $2,000 but does not exceed $4,000. “(2) Credit allowed for first 4 years of post-secondary education.— Subparagraphs (A) and Applicability. (C) of subsection (b)(2) shall be applied by substituting ‘4’ for ‘2’. “(3) Qualified tuition and related expenses to include required course materials.— Subsection (f)(1)(A) shall be applied by substituting ‘tuition, fees, and course materials’ for ‘tuition and fees’. “(4) Increase in agi limits for hope scholarship credit.— In lieu of applying subsection (d) with respect to the Hope Scholarship Credit, such credit (determined without regard to this paragraph) shall be reduced (but not below zero) by the amount which bears the same ratio to such credit (as so determined) as— “(A) the excess of— “(i) the taxpayer’s modified adjusted gross income (as defined in subsection (d)(3)) for such taxable year, over “(ii) $80,000 ($160,000 in the case of a joint return), bears to “(B) $10,000 ($20,000 in the case of a joint return). “(5) Credit allowed against alternative minimum tax.— In the case of a taxable year to which section 26(a)(2) does not apply, so much of the credit allowed under subsection (a) as is attributable to the Hope Scholarship Credit shall not exceed the excess of— “(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over “(B) the sum of the credits allowable under this subpart (other than this subsection and sections 23, 25D, and 30D) and section 27 for the taxable year. Any reference in this section or section 24, 25, 26, 25B, 904, or 1400C to a credit allowable under this subsection shall be treated as a reference to so much of the credit allowable under subsection (a) as is attributable to the Hope Scholarship Credit. “(6) Portion of credit made refundable.— 40 percent of so much of the credit allowed under subsection (a) as is attributable to the Hope Scholarship Credit (determined after application of paragraph (4) and without regard to this paragraph and section 26(a)(2) or paragraph (5), as the case may be) shall be treated as a credit allowable under subpart C (and not allowed under subsection (a)). The preceding sentence shall not apply to any taxpayer for any taxable year if such taxpayer is a child to whom subsection (g) of section 1 applies for such taxable year. “(7) Coordination with midwestern disaster area benefits.— In the case of a taxpayer with respect to whom section 702(a)(1)(B) of the Heartland Disaster Tax Relief Act of 2008 applies for any taxable year, such taxpayer may elect to waive the application of this subsection to such taxpayer for such taxable year.” . (b) Conforming Amendments.— (1) Section 26 USC 24. 24(b)(3)(B) is amended by inserting “25A(i),” after “23,”. (2) Section 25(e)(1)(C)(ii) is amended by inserting “25A(i),” after “24,”. (3) Section 26(a)(1) is amended by inserting “25A(i),” after “24,”. (4) Section 25B(g)(2) is amended by inserting “25A(i),” after “23,”. (5) Section 904(i) is amended by inserting “25A(i),” after “24,”. (6) Section 1400C(d)(2) is amended by inserting “25A(i),” after “24,”. (7) Section 6211(b)(4)(A) is amended by inserting “25A by reason of subsection (i)(6) thereof,” after “24(d),”. (8) Section 1324(b)(2) of title 31, United States Code, is amended by inserting “25A,” before “35”. (c) Treatment of Possessions.— (1) Payments to possessions.— (A) Mirror code possession.— The Secretary of the Treasury shall pay to each possession of the United States with a mirror code tax system amounts equal to the loss to that possession by reason of the application of section 25A(i)(6) of the Internal Revenue Code of 1986 (as added by this section) with respect to taxable years beginning in 2009 and 2010. Such amounts shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession. (B) Other possessions.— The Secretary of the Treasury shall pay to each possession of the United States which does not have a mirror code tax system amounts estimated by the Secretary of the Treasury as being equal to the aggregate benefits that would have been provided to residents of such possession by reason of the application of section 25A(i)(6) of such Code (as so added) for taxable years beginning in 2009 and 2010 if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply with respect to any possession of the United States unless such possession has a plan, which has been approved by the Secretary of the Treasury, under which such possession will promptly distribute such payments to the residents of such possession. (2) Coordination with credit allowed against united states income taxes.— Section 25A(i)(6) of such Code (as added by this section) shall not apply to a bona fide resident of any possession of the United States. (3) Definitions and special rules.— (A) Possession of the united states.— For purposes of this subsection, the term “possession of the United States” includes the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands. (B) Mirror code tax system.— For purposes of this subsection, the term “mirror code tax system” means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States. (C) Treatment of payments.— For purposes of section 1324(b)(2) of title 31, United States Code, the payments under this subsection shall be treated in the same manner as a refund due from the credit allowed under section 25A of the Internal Revenue Code of 1986 by reason of subsection (i)(6) of such section (as added by this section). (d) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 2008. (e) Application of EGTRRA Sunset.— The amendment made by subsection (b)(1) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provision of such Act to which such amendment relates. (f) Treasury Studies Regarding Education Incentives.— (1) Study regarding coordination with non-tax student financial assistance.— The Secretary of the Treasury and the Secretary of Education, or their delegates, shall— (A) study how to coordinate the credit allowed under section 25A of the Internal Revenue Code of 1986 with the Federal Pell Grant program under section 401 of the Higher Education Act of 1965 to maximize their effectiveness at promoting college affordability, and (B) examine ways to expedite the delivery of the tax credit. (2) Study regarding inclusion of community service requirements.— The Secretary of the Treasury and the Secretary of Education, or their delegates, shall study the feasibility of requiring including community service as a condition of taking their tuition and related expenses into account under section 25A of the Internal Revenue Code of 1986. (3) Report.— Not later than 1 year after the date of the enactment of this Act, the Secretary of the Treasury, or the Secretary’s delegate, shall report to Congress on the results of the studies conducted under this paragraph. SEC. 1005. COMPUTER TECHNOLOGY AND EQUIPMENT ALLOWED AS A QUALIFIED HIGHER EDUCATION EXPENSE FOR SECTION 529 ACCOUNTS IN 2009 AND 2010. (a) In General.— Section 529(e)(3)(A) 26 USC 529. is amended by striking “and” at the end of clause (i), by striking the period at the end of clause (ii), and by adding at the end the following: “(iii) expenses paid or incurred in 2009 or 2010 for the purchase of any computer technology or equipment (as defined in section 170(e)(6)(F)(i)) or Internet access and related services, if such technology, equipment, or services are to be used by the beneficiary and the beneficiary’s family during any of the years the beneficiary is enrolled at an eligible educational institution. Clause (iii) shall not include expenses for computer software designed for sports, games, or hobbies unless the software is predominantly educational in nature.” . (b) Effective Date.— The amendments made by this section shall apply to expenses paid or incurred after December 31, 2008. SEC. 1006. EXTENSION OF AND INCREASE IN FIRST-TIME HOMEBUYER CREDIT; WAIVER OF REQUIREMENT TO REPAY. (a) Extension.— (1) In general.— Section 36(h) is amended by striking “July 1, 2009” and inserting “December 1, 2009”. (2) Conforming amendment.— Section 36(g) is amended by striking “July 1, 2009” and inserting “December 1, 2009”. (b) Increase.— (1) In general.— Section 36(b) is amended by striking “$7,500” each place it appears and inserting “$8,000”. (2) Conforming amendment.— Section 36(b)(1)(B) is amended by striking “$3,750” and inserting “$4,000”. (c) Waiver of Recapture.— (1) In general.— Paragraph (4) of section 36(f) is amended by adding at the end the following new subparagraph: “(D) Waiver of recapture for purchases in 2009.— In the case Time period. of any credit allowed with respect to the purchase of a principal residence after December 31, 2008, and before December 1, 2009— “(i) paragraph (1) shall not apply, and “(ii) paragraph (2) shall apply only if the disposition or cessation described in paragraph (2) with respect to such residence occurs during the 36-month period beginning on the date of the purchase of such residence by the taxpayer.” . (2) Conforming amendment.— Subsection (g) of section 36 is amended by striking “subsection (c)” and inserting “subsections (c) and (f)(4)(D)”. (d) Coordination With First-Time Homebuyer Credit for District of Columbia.— (1) In general.— Subsection (e) of section 1400C is amended by adding at the end the following new paragraph: “(4) Coordination with national first-time homebuyers credit.— No credit shall Time period. be allowed under this section to any taxpayer with respect to the purchase of a residence after December 31, 2008, and before December 1, 2009, if a credit under section 36 is allowable to such taxpayer (or the taxpayer’s spouse) with respect to such purchase.” . (2) Conforming amendment.— Section 36(d) 26 USC 36. is amended by striking paragraph (1). (e) Removal of Prohibition on Financing by Mortgage Revenue Bonds.— Section 36(d), as amended by subsection (c)(2), is amended by striking paragraph (2) and by redesignating paragraphs (3) and (4) as paragraphs (1) and (2), respectively. (f) Effective Date.— The amendments made by this section shall apply to residences purchased after December 31, 2008. SEC. 1007. SUSPENSION OF TAX ON PORTION OF UNEMPLOYMENT COMPENSATION. (a) In General.— Section 85 of the Internal Revenue Code of 1986 (relating to unemployment compensation) is amended by adding at the end the following new subsection: “(c) Special Rule for 2009.— In the case of any taxable year beginning in 2009, gross income shall not include so much of the unemployment compensation received by an individual as does not exceed $2,400.” . (b) Effective Date.— The amendment made by this section shall apply to taxable years beginning after December 31, 2008. SEC. 1008. ADDITIONAL DEDUCTION FOR STATE SALES TAX AND EXCISE TAX ON THE PURCHASE OF CERTAIN MOTOR VEHICLES. (a) In General.— Subsection (a) of section 164 is amended by inserting after paragraph (5) the following new paragraph: “(6) Qualified motor vehicle taxes.” . (b) Qualified Motor Vehicle Taxes.— Subsection (b) of section 164 is amended by adding at the end the following new paragraph: “(6) Qualified motor vehicle taxes.— “(A) In general.— For purposes of this section, the term ‘qualified motor vehicle taxes’ means any State or local sales or excise tax imposed on the purchase of a qualified motor vehicle. “(B) Limitation based on vehicle price.— The amount of any State or local sales or excise tax imposed on the purchase of a qualified motor vehicle taken into account under subparagraph (A) shall not exceed the portion of such tax attributable to so much of the purchase price as does not exceed $49,500. “(C) Income limitation.— The amount otherwise taken into account under subparagraph (A) (after the application of subparagraph (B)) for any taxable year shall be reduced (but not below zero) by the amount which bears the same ratio to the amount which is so treated as— “(i) the excess (if any) of— “(I) the taxpayer’s modified adjusted gross income for such taxable year, over “(II) $125,000 ($250,000 in the case of a joint return), bears to “(ii) $10,000. For purposes of the preceding sentence, the term ‘modified adjusted gross income’ means the adjusted gross income of the taxpayer for the taxable year (determined without regard to sections 911, 931, and 933). “(D) Qualified motor vehicle.— For purposes of this paragraph— “(i) In general.— The term ‘qualified motor vehicle’ means— “(I) a passenger automobile or light truck which is treated as a motor vehicle for purposes of title II of the Clean Air Act, the gross vehicle weight rating of which is not more than 8,500 pounds, and the original use of which commences with the taxpayer, “(II) a motorcycle the gross vehicle weight rating of which is not more than 8,500 pounds and the original use of which commences with the taxpayer, and “(III) a motor home the original use of which commences with the taxpayer. “(ii) Other terms.— The terms ‘motorcycle’ and ‘motor home’ have the meanings given such terms under section 571.3 of title 49, Code of Federal Regulations (as in effect on the date of the enactment of this paragraph). “(E) Qualified motor vehicle taxes not included in cost of acquired property.— The last sentence of subsection (a) shall not apply to any qualified motor vehicle taxes. “(F) Coordination with general sales tax.— This paragraph shall not apply in the case of a taxpayer who makes an election under paragraph (5) for the taxable year. “(G) Termination.— This paragraph shall not apply to purchases after December 31, 2009.” . (c) Deduction Allowed to Nonitemizers.— (1) In general.— Paragraph (1) of section 63(c) 26 USC 63. is amended by striking “and” at the end of subparagraph (C), by striking the period at the end of subparagraph (D) and inserting “, and”, and by adding at the end the following new subparagraph: “(E) the motor vehicle sales tax deduction.” . (2) Definition.— Section 63(c) is amended by adding at the end the following new paragraph: “(9) Motor vehicle sales tax deduction.— For purposes of paragraph (1), the term ‘motor vehicle sales tax deduction’ means the amount allowable as a deduction under section 164(a)(6). Such term shall not include any amount taken into account under section 62(a).” . (d) Treatment of Deduction Under Alternative Minimum Tax.— The last sentence of section 56(b)(1)(E) is amended by striking “section 63(c)(1)(D)” and inserting “subparagraphs (D) and (E) of section 63(c)(1)”. (e) Effective Date.— The amendments made by this section shall apply to purchases on or after the date of the enactment of this Act in taxable years ending after such date. PART II— ALTERNATIVE MINIMUM TAX RELIEF SEC. 1011. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR NONREFUNDABLE PERSONAL CREDITS. (a) In General.— Paragraph (2) of section 26(a) 26 USC 26. (relating to special rule for taxable years 2000 through 2008) is amended— (1) by striking “or 2008” and inserting “2008, or 2009”, and (2) by striking “2008” in the heading thereof and inserting “2009”. (b) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 2008. SEC. 1012. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX EXEMPTION AMOUNT. (a) In General.— Paragraph (1) of section 55(d) (relating to exemption amount) is amended— (1) by striking “($69,950 in the case of taxable years beginning in 2008)” in subparagraph (A) and inserting “($70,950 in the case of taxable years beginning in 2009)”, and (2) by striking “($46,200 in the case of taxable years beginning in 2008)” in subparagraph (B) and inserting “($46,700 in the case of taxable years beginning in 2009)”. (b) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 2008. Subtitle B— Energy Incentives PART I— RENEWABLE ENERGY INCENTIVES SEC. 1101. EXTENSION OF CREDIT FOR ELECTRICITY PRODUCED FROM CERTAIN RENEWABLE RESOURCES. (a) In General.— Subsection (d) of section 45 is amended— (1) by striking “2010” in paragraph (1) and inserting “2013”, (2) by striking “2011” each place it appears in paragraphs (2), (3), (4), (6), (7) and (9) and inserting “2014”, and (3) by striking “2012” in paragraph (11)(B) and inserting “2014”. (b) Technical Amendment.— Paragraph (5) of section 45(d) is amended by striking “and before” and all that follows and inserting “ and before October 3, 2008.”. (c) Effective Date.— (1) In general.— The amendments made by subsection (a) shall apply to property placed in service after the date of the enactment of this Act. (2) Technical amendment.— The amendment made by subsection (b) shall take effect as if included in section 102 of the Energy Improvement and Extension Act of 2008. SEC. 1102. ELECTION OF INVESTMENT CREDIT IN LIEU OF PRODUCTION CREDIT. (a) In General.— Subsection (a) of section 48 is amended by adding at the end the following new paragraph: “(5) Election to treat qualified facilities as energy property.— “(A) In general.— In the case of any qualified property which is part of a qualified investment credit facility— “(i) such property shall be treated as energy property for purposes of this section, and “(ii) the energy percentage with respect to such property shall be 30 percent. “(B) Denial of production credit.— No credit shall be allowed under section 45 for any taxable year with respect to any qualified investment credit facility. “(C) Qualified investment credit facility.— For purposes of this paragraph, the term ‘qualified investment credit facility’ means any of the following facilities if no credit has been allowed under section 45 with respect to such facility and the taxpayer makes an irrevocable election to have this paragraph apply to such facility: “(i) Wind facilities.— Any qualified facility (within the meaning of section 45) described in paragraph (1) of section 45(d) if such facility is placed in service in 2009, 2010, 2011, or 2012. “(ii) Other facilities.— Any qualified facility (within the meaning of section 45) described in paragraph (2), (3), (4), (6), (7), (9), or (11) of section 45(d) if such facility is placed in service in 2009, 2010, 2011, 2012, or 2013. “(D) Qualified property.— For purposes of this paragraph, the term ‘qualified property’ means property— “(i) which is— “(I) tangible personal property, or “(II) other tangible property (not including a building or its structural components), but only if such property is used as an integral part of the qualified investment credit facility, and “(ii) with respect to which depreciation (or amortization in lieu of depreciation) is allowable.” . (b) Effective Date.— The amendments made by this section shall apply to facilities placed in service after December 31, 2008. SEC. 1103. REPEAL OF CERTAIN LIMITATIONS ON CREDIT FOR RENEWABLE ENERGY PROPERTY. (a) Repeal of Limitation on Credit for Qualified Small Wind Energy Property.— Paragraph (4) of section 48(c) 26 USC 48. is amended by striking subparagraph (B) and by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C). (b) Repeal of Limitation on Property Financed by Subsidized Energy Financing.— (1) In general.— Section 48(a)(4) is amended by adding at the end the following new subparagraph: “(D) Termination.— This paragraph shall not apply to periods after December 31, 2008, under rules similar to the rules of section 48(m) (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).” . (2) Conforming amendments.— (A) Section 25C(e)(1) is amended by striking “(8), and (9)” and inserting “and (8)”. (B) Section 25D(e) is amended by striking paragraph (9). (C) Section 48A(b)(2) 26 USC 48A. is amended by inserting “(without regard to subparagraph (D) thereof)” after “section 48(a)(4)”. (D) Section 48B(b)(2) is amended by inserting “(without regard to subparagraph (D) thereof)” after “section 48(a)(4)”. (c) Effective Date.— (1) In general.— Except as provided in paragraph (2), the amendment made by this section shall apply to periods after December 31, 2008, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990). (2) Conforming amendments.— The amendments made by subparagraphs (A) and (B) of subsection (b)(2) shall apply to taxable years beginning after December 31, 2008. SEC. 1104. COORDINATION WITH RENEWABLE ENERGY GRANTS.   Section 48 is amended by adding at the end the following new subsection: “(d) Coordination With Department of Treasury Grants.— In the case of any property with respect to which the Secretary makes a grant under section 1603 of the American Recovery and Reinvestment Tax Act of 2009— “(1) Denial of production and investment credits.— No credit shall be determined under this section or section 45 with respect to such property for the taxable year in which such grant is made or any subsequent taxable year. “(2) Recapture of credits for progress expenditures made before grant.— If a credit was determined under this section with respect to such property for any taxable year ending before such grant is made— “(A) the tax imposed under subtitle A on the taxpayer for the taxable year in which such grant is made shall be increased by so much of such credit as was allowed under section 38, “(B) the general business carryforwards under section 39 shall be adjusted so as to recapture the portion of such credit which was not so allowed, and “(C) the amount of such grant shall be determined without regard to any reduction in the basis of such property by reason of such credit. “(3) Treatment of grants.— Any such grant shall— “(A) not be includible in the gross income of the taxpayer, but “(B) shall be taken into account in determining the basis of the property to which such grant relates, except that the basis of such property shall be reduced under section 50(c) in the same manner as a credit allowed under subsection (a).” . PART II— INCREASED ALLOCATIONS OF NEW CLEAN RENEWABLE ENERGY BONDS AND QUALIFIED ENERGY CONSERVATION BONDS SEC. 1111. INCREASED LIMITATION ON ISSUANCE OF NEW CLEAN RENEWABLE ENERGY BONDS.   Subsection (c) of section 54C 26 USC 54C. is amended by adding at the end the following new paragraph: “(4) Additional limitation.— The national new clean renewable energy bond limitation shall be increased by $1,600,000,000. Such increase shall be allocated by the Secretary consistent with the rules of paragraphs (2) and (3).” . SEC. 1112. INCREASED LIMITATION ON ISSUANCE OF QUALIFIED ENERGY CONSERVATION BONDS. (a) In General.— Section 54D(d) is amended by striking “$800,000,000” and inserting “$3,200,000,000”. (b) Clarification With Respect to Green Community Programs.— (1) In general.— Clause (ii) of section 54D(f)(1)(A) is amended by inserting “(including the use of loans, grants, or other repayment mechanisms to implement such programs)” after “green community programs”. (2) Special rules for bonds for implementing green community programs.— Subsection (e) of section 54D is amended by adding at the end the following new paragraph: “(4) Special rules for bonds to implement green community programs.— In the case of any bond issued for the purpose of providing loans, grants, or other repayment mechanisms for capital expenditures to implement green community programs, such bond shall not be treated as a private activity bond for purposes of paragraph (3).” . PART III— ENERGY CONSERVATION INCENTIVES SEC. 1121. EXTENSION AND MODIFICATION OF CREDIT FOR NONBUSINESS ENERGY PROPERTY. (a) In General.— Section 25C is amended by striking subsections (a) and (b) and inserting the following new subsections: “(a) Allowance of Credit.— In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 30 percent of the sum of— “(1) the amount paid or incurred by the taxpayer during such taxable year for qualified energy efficiency improvements, and “(2) the amount of the residential energy property expenditures paid or incurred by the taxpayer during such taxable year. “(b) Limitation.— The aggregate amount of the credits allowed under this section for taxable years beginning in 2009 and 2010 with respect to any taxpayer shall not exceed $1,500.” . (b) Modifications of Standards for Energy-Efficient Building Property.— (1) Electric heat pumps.— Subparagraph (B) of section 25C(d)(3) 26 USC 25C. is amended to read as follows: “(B) an electric heat pump which achieves the highest efficiency tier established by the Consortium for Energy Efficiency, as in effect on January 1, 2009.” . (2) Central air conditioners.— Subparagraph (C) of section 25C(d)(3) is amended by striking “2006” and inserting “2009”. (3) Water heaters.— Subparagraph (D) of section 25C(d)(3) is amended to read as follows: “(D) a natural gas, propane, or oil water heater which has either an energy factor of at least 0.82 or a thermal efficiency of at least 90 percent.” . (4) Wood stoves.— Subparagraph (E) of section 25C(d)(3) is amended by inserting “, as measured using a lower heating value” after “75 percent”. (c) Modifications of Standards for Oil Furnaces and Hot Water Boilers.— (1) In general.— Paragraph (4) of section 25C(d) is amended to read as follows: “(4) Qualified natural gas, propane, and oil furnaces and hot water boilers.— “(A) Qualified natural gas furnace.— The term ‘qualified natural gas furnace’ means any natural gas furnace which achieves an annual fuel utilization efficiency rate of not less than 95. “(B) Qualified natural gas hot water boiler.— The term ‘qualified natural gas hot water boiler’ means any natural gas hot water boiler which achieves an annual fuel utilization efficiency rate of not less than 90. “(C) Qualified propane furnace.— The term ‘qualified propane furnace’ means any propane furnace which achieves an annual fuel utilization efficiency rate of not less than 95. “(D) Qualified propane hot water boiler.— The term ‘qualified propane hot water boiler’ means any propane hot water boiler which achieves an annual fuel utilization efficiency rate of not less than 90. “(E) Qualified oil furnaces.— The term ‘qualified oil furnace’ means any oil furnace which achieves an annual fuel utilization efficiency rate of not less than 90. “(F) Qualified oil hot water boiler.— The term ‘qualified oil hot water boiler’ means any oil hot water boiler which achieves an annual fuel utilization efficiency rate of not less than 90.” . (2) Conforming amendment.— Clause (ii) of section 25C(d)(2)(A) is amended to read as follows: “(ii) any qualified natural gas furnace, qualified propane furnace, qualified oil furnace, qualified natural gas hot water boiler, qualified propane hot water boiler, or qualified oil hot water boiler, or” . (d) Modifications of Standards for Qualified Energy Efficiency Improvements.— (1) Qualifications for exterior windows, doors, and skylights.— Subsection (c) of section 25C is amended by adding at the end the following new paragraph: “(4) Qualifications for exterior windows, doors, and skylights.— Such term shall not include any component described in subparagraph (B) or (C) of paragraph (2) unless such component is equal to or below a U factor of 0.30 and SHGC of 0.30.” . (2) Additional qualification for insulation.— Subparagraph (A) of section 25C(c)(2) 26 USC 25C. is amended by inserting “and meets the prescriptive criteria for such material or system established by the 2009 International Energy Conservation Code, as such Code (including supplements) is in effect on the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009” after “such dwelling unit”. (e) Extension.— Section 25C(g)(2) is amended by striking “December 31, 2009” and inserting “December 31, 2010”. (f) Effective Dates.— (1) In general.— Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 2008. (2) Efficiency standards.— The amendments made by paragraphs (1), (2), and (3) of subsection (b) and subsections (c) and (d) shall apply to property placed in service after the date of the enactment of this Act. SEC. 1122. MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY. (a) Removal of Credit Limitation for Property Placed in Service.— (1) In general.— Paragraph (1) of section 25D(b) is amended to read as follows: “(1) Maximum credit for fuel cells.— In the case of any qualified fuel cell property expenditure, the credit allowed under subsection (a) (determined without regard to subsection (c)) for any taxable year shall not exceed $500 with respect to each half kilowatt of capacity of the qualified fuel cell property (as defined in section 48(c)(1)) to which such expenditure relates.” . (2) Conforming amendment.— Paragraph (4) of section 25D(e) is amended— (A) by striking all that precedes subparagraph (B) and inserting the following: “(4) Fuel cell expenditure limitations in case of joint occupancy.— In the case of any dwelling unit with respect to which qualified fuel cell property expenditures are made and which is jointly occupied and used during any calendar year as a residence by two or more individuals, the following rules shall apply: “(A) Maximum expenditures for fuel cells.— The maximum amount of such expenditures which may be taken into account under subsection (a) by all such individuals with respect to such dwelling unit during such calendar year shall be $1,667 in the case of each half kilowatt of capacity of qualified fuel cell property (as defined in section 48(c)(1)) with respect to which such expenditures relate.” , and (B) by striking subparagraph (C). (b) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 2008. SEC. 1123. TEMPORARY INCREASE IN CREDIT FOR ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY. (a) In General.— Section 30C(e) 26 USC 30C. is amended by adding at the end the following new paragraph: “(6) Special rule for property placed in service during 2009 and 2010.— In the case of property placed in service in taxable years beginning after December 31, 2008, and before January 1, 2011— “(A) in the case of any such property which does not relate to hydrogen— “(i) subsection (a) shall be applied by substituting ‘50 percent’ for ‘30 percent’, “(ii) subsection (b)(1) shall be applied by substituting ‘$50,000’ for ‘$30,000’, and “(iii) subsection (b)(2) shall be applied by substituting ‘$2,000’ for ‘$1,000’, and “(B) in the case of any such property which relates to hydrogen, subsection (b)(1) shall be applied by substituting ‘$200,000’ for ‘$30,000’.” . (b) Effective Date.— The amendment made by this section shall apply to taxable years beginning after December 31, 2008. PART IV— MODIFICATION OF CREDIT FOR CARBON DIOXIDE SEQUESTRATION SEC. 1131. APPLICATION OF MONITORING REQUIREMENTS TO CARBON DIOXIDE USED AS A TERTIARY INJECTANT. (a) In General.— Section 45Q(a)(2) is amended by striking “and” at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting “, and”, and by adding at the end the following new subparagraph: “(C) disposed of by the taxpayer in secure geological storage.” . (b) Conforming Amendments.— (1) Section 45Q(d)(2) is amended— (A) by striking “subsection (a)(1)(B)” and inserting “paragraph (1)(B) or (2)(C) of subsection (a)”, (B) by striking “and unminable coal seems” and inserting “, oil and gas reservoirs, and unminable coal seams”, and (C) by inserting “the Secretary of Energy, and the Secretary of the Interior,” after “Environmental Protection Agency”. (2) Section 45Q(a)(1)(B) is amended by inserting “and not used by the taxpayer as described in paragraph (2)(B)” after “storage”. (3) Section 45Q(e) is amended by striking “captured and disposed of or used as a tertiary injectant” and inserting “taken into account in accordance with subsection (a)”. (c) Effective Date.— The amendments made by this section shall apply to carbon dioxide captured after the date of the enactment of this Act. PART V— PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES SEC. 1141. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES. (a) In General.— Section 30D 26 USC 30D. is amended to read as follows: “SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES. “(a) Allowance of Credit.— There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the credit amounts determined under subsection (b) with respect to each new qualified plug-in electric drive motor vehicle placed in service by the taxpayer during the taxable year. “(b) Per Vehicle Dollar Limitation.— “(1) In general.— The amount determined under this subsection with respect to any new qualified plug-in electric drive motor vehicle is the sum of the amounts determined under paragraphs (2) and (3) with respect to such vehicle. “(2) Base amount.— The amount determined under this paragraph is $2,500. “(3) Battery capacity.— In the case of a vehicle which draws propulsion energy from a battery with not less than 5 kilowatt hours of capacity, the amount determined under this paragraph is $417, plus $417 for each kilowatt hour of capacity in excess of 5 kilowatt hours. The amount determined under this paragraph shall not exceed $5,000. “(c) Application With Other Credits.— “(1) Business credit treated as part of general business credit.— So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to property of a character subject to an allowance for depreciation shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)). “(2) Personal credit.— “(A) In general.— For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year. “(B) Limitation based on amount of tax.— In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall not exceed the excess of— “(i) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over “(ii) the sum of the credits allowable under subpart A (other than this section and sections 23 and 25D) and section 27 for the taxable year. “(d) New Qualified Plug-in Electric Drive Motor Vehicle.— For purposes of this section— “(1) In general.— The term ‘new qualified plug-in electric drive motor vehicle’ means a motor vehicle— “(A) the original use of which commences with the taxpayer, “(B) which is acquired for use or lease by the taxpayer and not for resale, “(C) which is made by a manufacturer, “(D) which is treated as a motor vehicle for purposes of title II of the Clean Air Act, “(E) which has a gross vehicle weight rating of less than 14,000 pounds, and “(F) which is propelled to a significant extent by an electric motor which draws electricity from a battery which— “(i) has a capacity of not less than 4 kilowatt hours, and “(ii) is capable of being recharged from an external source of electricity. “(2) Motor vehicle.— The term ‘motor vehicle’ means any vehicle which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails) and which has at least 4 wheels. “(3) Manufacturer.— The term ‘manufacturer’ has the meaning given such term in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act (42 U.S.C. 7521 et seq.). “(4) Battery capacity.— The term ‘capacity’ means, with respect to any battery, the quantity of electricity which the battery is capable of storing, expressed in kilowatt hours, as measured from a 100 percent state of charge to a 0 percent state of charge. “(e) Limitation on Number of New Qualified Plug-in Electric Drive Motor Vehicles Eligible for Credit.— “(1) In general.— In the case of a new qualified plug-in electric drive motor vehicle sold during the phaseout period, only the applicable percentage of the credit otherwise allowable under subsection (a) shall be allowed. “(2) Phaseout period.— For purposes of this subsection, the phaseout period is the period beginning with the second calendar quarter following the calendar quarter which includes the first date on which the number of new qualified plug-in electric drive motor vehicles manufactured by the manufacturer of the vehicle referred to in paragraph (1) sold for use in the United States after December 31, 2009, is at least 200,000. “(3) Applicable percentage.— For purposes of paragraph (1), the applicable percentage is— “(A) 50 percent for the first 2 calendar quarters of the phaseout period, “(B) 25 percent for the 3d and 4th calendar quarters of the phaseout period, and “(C) 0 percent for each calendar quarter thereafter. “(4) Controlled groups.— Rules similar to the rules of section 30B(f)(4) shall apply for purposes of this subsection. “(f) Special Rules.— “(1) Basis reduction.— For purposes of this subtitle, the basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit so allowed. “(2) No double benefit.— The amount of any deduction or other credit allowable under this chapter for a new qualified plug-in electric drive motor vehicle shall be reduced by the amount of credit allowed under subsection (a) for such vehicle. “(3) Property used by tax-exempt entity.— In the case of a vehicle the use of which is described in paragraph (3) or (4) of section 50(b) and which is not subject to a lease, the person who sold such vehicle to the person or entity using such vehicle shall be treated as the taxpayer that placed such vehicle in service, but only if such person clearly discloses to such person or entity in a document the amount of any credit allowable under subsection (a) with respect to such vehicle (determined without regard to subsection (c)). “(4) Property used outside united states not qualified.— No credit shall be allowable under subsection (a) with respect to any property referred to in section 50(b)(1). “(5) Recapture.— The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit. “(6) Election not to take credit.— No credit shall be allowed under subsection (a) for any vehicle if the taxpayer elects to not have this section apply to such vehicle. “(7) Interaction with air quality and motor vehicle safety standards.— A motor vehicle shall not be considered eligible for a credit under this section unless such vehicle is in compliance with— “(A) the applicable provisions of the Clean Air Act for the applicable make and model year of the vehicle (or applicable air quality provisions of State law in the case of a State which has adopted such provision under a waiver under section 209(b) of the Clean Air Act), and “(B) the motor vehicle safety provisions of sections 30101 through 30169 of title 49, United States Code.” . (b) Conforming Amendments.— (1) Section 30B(d)(3)(D) 26 USC 30B. is amended by striking “subsection (d) thereof” and inserting “subsection (c) thereof”. (2) Section 38(b)(35) is amended by striking “30D(d)(1)” and inserting “30D(c)(1)”. (3) Section 1016(a)(25) is amended by striking “section 30D(e)(4)” and inserting “section 30D(f)(1)”. (4) Section 6501(m) is amended by striking “section 30D(e)(9)” and inserting “section 30D(e)(4)”. (c) Effective Date.— The amendments made by this section shall apply to vehicles acquired after December 31, 2009. SEC. 1142. CREDIT FOR CERTAIN PLUG-IN ELECTRIC VEHICLES. (a) In General.— Section 30 is amended to read as follows: “SEC. 30. CERTAIN PLUG-IN ELECTRIC VEHICLES. “(a) Allowance of Credit.— There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 10 percent of the cost of any qualified plug-in electric vehicle placed in service by the taxpayer during the taxable year. “(b) Per Vehicle Dollar Limitation.— The amount of the credit allowed under subsection (a) with respect to any vehicle shall not exceed $2,500. “(c) Application With Other Credits.— “(1) Business credit treated as part of general business credit.— So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to property of a character subject to an allowance for depreciation shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)). “(2) Personal credit.— “(A) In general.— For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year. “(B) Limitation based on amount of tax.— In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall not exceed the excess of— “(i) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over “(ii) the sum of the credits allowable under subpart A (other than this section and sections 23, 25D, and 30D) and section 27 for the taxable year. “(d) Qualified Plug-in Electric Vehicle.— For purposes of this section— “(1) In general.— The term ‘qualified plug-in electric vehicle’ means a specified vehicle— “(A) the original use of which commences with the taxpayer, “(B) which is acquired for use or lease by the taxpayer and not for resale, “(C) which is made by a manufacturer, “(D) which is manufactured primarily for use on public streets, roads, and highways, “(E) which has a gross vehicle weight rating of less than 14,000 pounds, and “(F) which is propelled to a significant extent by an electric motor which draws electricity from a battery which— “(i) has a capacity of not less than 4 kilowatt hours (2.5 kilowatt hours in the case of a vehicle with 2 or 3 wheels), and “(ii) is capable of being recharged from an external source of electricity. “(2) Specified vehicle.— The term ‘specified vehicle’ means any vehicle which— “(A) is a low speed vehicle within the meaning of section 571.3 of title 49, Code of Federal Regulations (as in effect on the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009), or “(B) has 2 or 3 wheels. “(3) Manufacturer.— The term ‘manufacturer’ has the meaning given such term in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act (42 U.S.C. 7521 et seq.). “(4) Battery capacity.— The term ‘capacity’ means, with respect to any battery, the quantity of electricity which the battery is capable of storing, expressed in kilowatt hours, as measured from a 100 percent state of charge to a 0 percent state of charge. “(e) Special Rules.— “(1) Basis reduction.— For purposes of this subtitle, the basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit so allowed. “(2) No double benefit.— The amount of any deduction or other credit allowable under this chapter for a new qualified plug-in electric drive motor vehicle shall be reduced by the amount of credit allowable under subsection (a) for such vehicle. “(3) Property used by tax-exempt entity.— In the case of a vehicle the use of which is described in paragraph (3) or (4) of section 50(b) and which is not subject to a lease, the person who sold such vehicle to the person or entity using such vehicle shall be treated as the taxpayer that placed such vehicle in service, but only if such person clearly discloses to such person or entity in a document the amount of any credit allowable under subsection (a) with respect to such vehicle (determined without regard to subsection (c)). “(4) Property used outside united states not qualified.— No credit shall be allowable under subsection (a) with respect to any property referred to in section 50(b)(1). “(5) Recapture.— The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit. “(6) Election not to take credit.— No credit shall be allowed under subsection (a) for any vehicle if the taxpayer elects to not have this section apply to such vehicle. “(f) Termination.— This section shall not apply to any vehicle acquired after December 31, 2011.” . (b) Conforming Amendments.— (1) (A) Section 24(b)(3)(B) 26 USC 24. is amended by inserting “30,” after “25D,”. (B) Section 25(e)(1)(C)(ii) is amended by inserting “30,” after “25D,”. (C) Section 25B(g)(2) is amended by inserting “30,” after “25D,”. (D) Section 26(a)(1) is amended by inserting “30,” after “25D,”. (E) Section 904(i) is amended by striking “and 25B” and inserting “25B, 30, and 30D”. (F) Section 1400C(d)(2) is amended by striking “and 25D” and inserting “25D, and 30”. (2) Paragraph (1) of section 30B(h) is amended to read as follows: “(1) Motor vehicle.— The term ‘motor vehicle’ means any vehicle which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails) and which has at least 4 wheels.” . (3) Section 30C(d)(2)(A) 26 USC 30C. is amended by striking “, 30,”. (4) (A) Section 53(d)(1)(B) is amended by striking clause (iii) and redesignating clause (iv) as clause (iii). (B) Subclause (II) of section 53(d)(1)(B)(iii), as so redesignated, is amended by striking “increased in the manner provided in clause (iii)”. (5) Section 55(c)(3) is amended by striking “30(b)(3),”. (6) Section 1016(a)(25) is amended by striking “section 30(d)(1)” and inserting “section 30(e)(1)”. (7) Section 6501(m) is amended by striking “section 30(d)(4)” and inserting “section 30(e)(6)”. (8) The item in the table of sections for subpart B of part IV of subchapter A of chapter 1 is amended to read as follows: “Sec. 30.  Certain plug-in electric vehicles.”. (c) Effective Date.— The amendments made by this section shall apply to vehicles acquired after the date of the enactment of this Act. (d) Transitional Rule.— In the Time period. 26 USC 30 note. case of a vehicle acquired after the date of the enactment of this Act and before January 1, 2010, no credit shall be allowed under section 30 of the Internal Revenue Code of 1986, as added by this section, if credit is allowable under section 30D of such Code with respect to such vehicle. (e) Application of EGTRRA Sunset.— The amendment made by subsection (b)(1)(A) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provision of such Act to which such amendment relates. SEC. 1143. CONVERSION KITS. (a) In General.— Section 30B (relating to alternative motor vehicle credit) is amended by redesignating subsections (i) and (j) as subsections (j) and (k), respectively, and by inserting after subsection (h) the following new subsection: “(i) Plug-in Conversion Credit.— “(1) In general.— For purposes of subsection (a), the plug-in conversion credit determined under this subsection with respect to any motor vehicle which is converted to a qualified plug-in electric drive motor vehicle is 10 percent of so much of the cost of the converting such vehicle as does not exceed $40,000. “(2) Qualified plug-in electric drive motor vehicle.— For purposes of this subsection, the term ‘qualified plug-in electric drive motor vehicle’ means any new qualified plug-in electric drive motor vehicle (as defined in section 30D, determined without regard to whether such vehicle is made by a manufacturer or whether the original use of such vehicle commences with the taxpayer). “(3) Credit allowed in addition to other credits.— The credit allowed under this subsection shall be allowed with respect to a motor vehicle notwithstanding whether a credit has been allowed with respect to such motor vehicle under this section (other than this subsection) in any preceding taxable year. “(4) Termination.— This subsection shall not apply to conversions made after December 31, 2011.” . (b) Credit Treated as Part of Alternative Motor Vehicle Credit.— Section 30B(a) 26 USC 30B. is amended by striking “and” at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting “, and”, and by adding at the end the following new paragraph: “(5) the plug-in conversion credit determined under subsection (i).” . (c) No Recapture for Vehicles Converted to Qualified Plug-in Electric Drive Motor Vehicles.— Paragraph (8) of section 30B(h) is amended by adding at the end the following: “, except that no benefit shall be recaptured if such property ceases to be eligible for such credit by reason of conversion to a qualified plug-in electric drive motor vehicle.”. (d) Effective Date.— The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act. SEC. 1144. TREATMENT OF ALTERNATIVE MOTOR VEHICLE CREDIT AS A PERSONAL CREDIT ALLOWED AGAINST AMT. (a) In General.— Paragraph (2) of section 30B(g) is amended to read as follows: “(2) Personal credit.— “(A) In general.— For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year. “(B) Limitation based on amount of tax.— In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall not exceed the excess of— “(i) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over “(ii) the sum of the credits allowable under subpart A (other than this section and sections 23, 25D, 30, and 30D) and section 27 for the taxable year.” . (b) Conforming Amendments.— (1) (A) Section 24(b)(3)(B), as amended by this Act, is amended by inserting “30B,” after “30,”. (B) Section 25(e)(1)(C)(ii), as amended by this Act, is amended by inserting “30B,” after “30,”. (C) Section 25B(g)(2), as amended by this Act, is amended by inserting “30B,” after “30,”. (D) Section 26(a)(1), as amended by this Act, is amended by inserting “30B,” after “30,”. (E) Section 904(i), as amended by this Act, is amended by inserting “30B,” after “30”. (F) Section 1400C(d)(2), as amended by this Act, is amended by striking “and 30” and inserting “30, and 30B”. (2) Section 30C(d)(2)(A), as amended by this Act, is amended by striking “sections 27 and 30B” and inserting “section 27”. (3) Section 55(c)(3) is amended by striking “30B(g)(2),”. (c) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 2008. (d) Application of EGTRRA Sunset.— The amendment made by subsection (b)(1)(A) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provision of such Act to which such amendment relates. PART VI— PARITY FOR TRANSPORTATION FRINGE BENEFITS SEC. 1151. INCREASED EXCLUSION AMOUNT FOR COMMUTER TRANSIT BENEFITS AND TRANSIT PASSES. (a) In General.— Paragraph (2) of section 132(f) 26 USC 132. is amended by adding at the end the following flush sentence: “In Applicability. the case of any month beginning on or after the date of the enactment of this sentence and before January 1, 2011, subparagraph (A) shall be applied as if the dollar amount therein were the same as the dollar amount in effect for such month under subparagraph (B).” . (b) Effective Date.— The amendment made by this section shall apply to months beginning on or after the date of the enactment of this section. Subtitle C— Tax Incentives for Business PART I— TEMPORARY INVESTMENT INCENTIVES SEC. 1201. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY ACQUIRED DURING 2009. (a) Extension of Special Allowance.— (1) In general.— Paragraph (2) of section 168(k) is amended— (A) by striking “January 1, 2010” and inserting “January 1, 2011”, and (B) by striking “January 1, 2009” each place it appears and inserting “January 1, 2010”. (2) Conforming amendments.— (A) The heading for subsection (k) of section 168 is amended by striking “January 1, 2009” and inserting “January 1, 2010”. (B) The heading for clause (ii) of section 168(k)(2)(B) is amended by striking “pre-january 1, 2009” and inserting “pre-january 1, 2010”. (C) Subparagraph (B) of section 168(l)(5) is amended by striking “January 1, 2009” and inserting “January 1, 2010”. (D) Subparagraph (C) of section 168(n)(2) is amended by striking “January 1, 2009” and inserting “January 1, 2010”. (E) Subparagraph (B) of section 1400N(d)(3) is amended by striking “January 1, 2009” and inserting “January 1, 2010”. (3) Technical amendments.— (A) Subparagraph (D) of section 168(k)(4) is amended— (i) by striking “and” at the end of clause (i), (ii) by redesignating clause (ii) as clause (iii), and (iii) by inserting after clause (i) the following new clause: “(ii) ‘April 1, 2008’ shall be substituted for ‘January 1, 2008’ in subparagraph (A)(iii)(I) thereof, and” . (B) Subparagraph (A) of section 6211(b)(4) 26 USC 6211. is amended by inserting “168(k)(4),” after “53(e),”. (b) Extension of Election to Accelerate the Amt and Research Credits in Lieu of Bonus Depreciation.— (1) In general.— Section 168(k)(4) (relating to election to accelerate the AMT and research credits in lieu of bonus depreciation) is amended— (A) by striking “2009” and inserting “2010”in subparagraph (D)(iii) (as redesignated by subsection (a)(3)), and (B) by adding at the end the following new subparagraph: “(H) Special rules for extension property.— “(i) Taxpayers previously electing acceleration.— In the case of a taxpayer who made the election under subparagraph (A) for its first taxable year ending after March 31, 2008— “(I) the taxpayer may elect not to have this paragraph apply to extension property, but “(II) if the taxpayer does not make the election under subclause (I), in applying this paragraph to the taxpayer a separate bonus depreciation amount, maximum amount, and maximum increase amount shall be computed and applied to eligible qualified property which is extension property and to eligible qualified property which is not extension property. “(ii) Taxpayers not previously electing acceleration.— In the case of a taxpayer who did not make the election under subparagraph (A) for its first taxable year ending after March 31, 2008— “(I) the taxpayer may elect to have this paragraph apply to its first taxable year ending after December 31, 2008, and each subsequent taxable year, and “(II) if the taxpayer makes the election under subclause (I), this paragraph shall only apply to eligible qualified property which is extension property. “(iii) Extension property.— For purposes of this subparagraph, the term ‘extension property’ means property which is eligible qualified property solely by reason of the extension of the application of the special allowance under paragraph (1) pursuant to the amendments made by section 1201(a) of the American Recovery and Reinvestment Tax Act of 2009 (and the application of such extension to this paragraph pursuant to the amendment made by section 1201(b)(1) of such Act).” . (2) Technical amendment.— Section 6211(b)(4)(A) is amended by inserting “168(k)(4),” after “53(e),”. (c) Effective Dates.— (1) In general.— Except as provided in paragraph (2), the amendments made by this section shall apply to property placed in service after December 31, 2008, in taxable years ending after such date. (2) Technical amendments.— The amendments made by subsections (a)(3) and (b)(2) shall apply to taxable years ending after March 31, 2008. SEC. 1202. TEMPORARY INCREASE IN LIMITATIONS ON EXPENSING OF CERTAIN DEPRECIABLE BUSINESS ASSETS. (a) In General.— Paragraph (7) of section 179(b) 26 USC 179. is amended— (1) by striking “2008” and inserting “2008, or 2009”, and (2) by striking “2008” in the heading thereof and inserting “2008, and 2009”. (b) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 2008. PART II— SMALL BUSINESS PROVISIONS SEC. 1211. 5-YEAR CARRYBACK OF OPERATING LOSSES OF SMALL BUSINESSES. (a) In General.— Subparagraph (H) of section 172(b)(1) is amended to read as follows: “(H) Carryback for 2008 net operating losses of small businesses.— “(i) In general.— If an eligible small business elects the application of this subparagraph with respect to an applicable 2008 net operating loss— “(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 “(III) subparagraph (F) shall not apply. “(ii) Applicable 2008 net operating loss.— For purposes of this subparagraph, the term ‘applicable 2008 net operating loss’ means— “(I) the taxpayer’s net operating loss for any taxable year ending in 2008, or “(II) if the taxpayer elects to have this subclause apply in lieu of subclause (I), the taxpayer’s net operating loss for any taxable year beginning in 2008. “(iii) Election.— 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 taxpayer’s return for the taxable year of the net operating loss. Any such election, once made, shall be irrevocable. Any election under this subparagraph may be made only with respect to 1 taxable year. “(iv) 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) Conforming Amendment.— Section 172 26 USC 172. is amended by striking subsection (k) and by redesignating subsection (l) as subsection (k). (c) Anti-Abuse 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. (d) Effective Date.— (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. (2) Transitional rule.— In the case of a net operating loss for a taxable year ending before the date of the enactment of this Act— (A) any election made under section 172(b)(3) of the Internal Revenue Code of 1986 with respect to such loss may (notwithstanding such section) be revoked before the applicable date, (B) any election made under section 172(b)(1)(H) of such Code with respect to such loss shall (notwithstanding such section) be treated as timely made if made before the applicable date, and (C) any application under section 6411(a) of such Code with respect to such loss shall be treated as timely filed if filed before the applicable date. For Definition. purposes of this paragraph, the term “applicable date” means the date which is 60 days after the date of the enactment of this Act. SEC. 1212. DECREASED REQUIRED ESTIMATED TAX PAYMENTS IN 2009 FOR CERTAIN SMALL BUSINESSES.   Paragraph (1) of section 6654(d) is amended by adding at the end the following new subparagraph: “(D) Special rule for 2009.— “(i) In general.— Notwithstanding subparagraph (C), in the case of any taxable year beginning in 2009, clause (ii) of subparagraph (B) shall be applied to any qualified individual by substituting ‘90 percent’ for ‘100 percent’. “(ii) Qualified individual.— For purposes of this subparagraph, the term ‘qualified individual’ means any individual if— “(I) the adjusted gross income shown on the return of such individual for the preceding taxable year is less than $500,000, and “(II) such individual certifies that more than 50 percent of the gross income shown on the return of such individual for the preceding taxable year was income from a small business. A certification under subclause (II) shall be in such form and manner and filed at such time as the Secretary may by regulations prescribe. “(iii) Income from a small business.— For purposes of clause (ii), income from a small business means, with respect to any individual, income from a trade or business the average number of employees of which was less than 500 employees for the calendar year ending with or within the preceding taxable year of the individual. “(iv) Separate returns.— In the case of a married individual (within the meaning of section 7703) who files a separate return for the taxable year for which the amount of the installment is being determined, clause (ii)(I) shall be applied by substituting ‘$250,000’ for ‘$500,000’. “(v) Estates and trusts.— In the case of an estate or trust, adjusted gross income shall be determined as provided in section 67(e).” . PART III— INCENTIVES FOR NEW JOBS SEC. 1221. INCENTIVES TO HIRE UNEMPLOYED VETERANS AND DISCONNECTED YOUTH. (a) In General.— Subsection (d) of section 51 26 USC 51. is amended by adding at the end the following new paragraph: “(14) Credit allowed for unemployed veterans and disconnected youth hired in 2009 or 2010.— “(A) In general.— Any unemployed veteran or disconnected youth who begins work for the employer during 2009 or 2010 shall be treated as a member of a targeted group for purposes of this subpart. “(B) Definitions.— For purposes of this paragraph— “(i) Unemployed veteran.— The term ‘unemployed veteran’ means any veteran (as defined in paragraph (3)(B), determined without regard to clause (ii) thereof) who is certified by the designated local agency as— “(I) having been discharged or released from active duty in the Armed Forces at any time during the 5-year period ending on the hiring date, and “(II) being in receipt of unemployment compensation under State or Federal law for not less than 4 weeks during the 1-year period ending on the hiring date. “(ii) Disconnected youth.— The term ‘disconnected youth’ means any individual who is certified by the designated local agency— “(I) as having attained age 16 but not age 25 on the hiring date, “(II) as not regularly attending any secondary, technical, or post-secondary school during the 6-month period preceding the hiring date, “(III) as not regularly employed during such 6-month period, and “(IV) as not readily employable by reason of lacking a sufficient number of basic skills.” . (b) Effective Date.— The amendments made by this section shall apply to individuals who begin work for the employer after December 31, 2008. PART IV— RULES RELATING TO DEBT INSTRUMENTS SEC. 1231. DEFERRAL AND RATABLE INCLUSION OF INCOME ARISING FROM BUSINESS INDEBTEDNESS DISCHARGED BY THE REACQUISITION OF A DEBT INSTRUMENT. (a) In General.— Section 108 26 USC 108. (relating to income from discharge of indebtedness) is amended by adding at the end the following new subsection: “(i) Deferral and Ratable Inclusion of Income Arising From Business Indebtedness Discharged by the Reacquisition of a Debt Instrument.— “(1) In general.— At the Time periods. election of the taxpayer, income from the discharge of indebtedness in connection with the reacquisition after December 31, 2008, and before January 1, 2011, of an applicable debt instrument shall be includible in gross income ratably over the 5-taxable-year period beginning with— “(A) in the case of a reacquisition occurring in 2009, the fifth taxable year following the taxable year in which the reacquisition occurs, and “(B) in the case of a reacquisition occurring in 2010, the fourth taxable year following the taxable year in which the reacquisition occurs. “(2) Deferral of deduction for original issue discount in debt for debt exchanges.— “(A) In general.— If, as part of a reacquisition to which paragraph (1) applies, any debt instrument is issued for the applicable debt instrument being reacquired (or is treated as so issued under subsection (e)(4) and the regulations thereunder) and there is any original issue discount determined under subpart A of part V of subchapter P of this chapter with respect to the debt instrument so issued— “(i) except as provided in clause (ii), no deduction otherwise allowable under this chapter shall be allowed to the issuer of such debt instrument with respect to the portion of such original issue discount which— “(I) accrues before the 1st taxable year in the 5-taxable-year period in which income from the discharge of indebtedness attributable to the reacquisition of the debt instrument is includible under paragraph (1), and “(II) does not exceed the income from the discharge of indebtedness with respect to the debt instrument being reacquired, and “(ii) the aggregate amount of deductions disallowed under clause (i) shall be allowed as a deduction ratably over the 5-taxable-year period described in clause (i)(I). If the amount of the original issue discount accruing before such 1st taxable year exceeds the income from the discharge of indebtedness with respect to the applicable debt instrument being reacquired, the deductions shall be disallowed in the order in which the original issue discount is accrued. “(B) Deemed debt for debt exchanges.— For purposes of subparagraph (A), if any debt instrument is issued by an issuer and the proceeds of such debt instrument are used directly or indirectly by the issuer to reacquire an applicable debt instrument of the issuer, the debt instrument so issued shall be treated as issued for the debt instrument being reacquired. Regulations. Applicability. If only a portion of the proceeds from a debt instrument are so used, the rules of subparagraph (A) shall apply to the portion of any original issue discount on the newly issued debt instrument which is equal to the portion of the proceeds from such instrument used to reacquire the outstanding instrument. “(3) Applicable debt instrument.— For purposes of this subsection— “(A) Applicable debt instrument.— The term ‘applicable debt instrument’ means any debt instrument which was issued by— “(i) a C corporation, or “(ii) any other person in connection with the conduct of a trade or business by such person. “(B) Debt instrument.— The term ‘debt instrument’ means a bond, debenture, note, certificate, or any other instrument or contractual arrangement constituting indebtedness (within the meaning of section 1275(a)(1)). “(4) Reacquisition.— For purposes of this subsection— “(A) In general.— The term ‘reacquisition’ means, with respect to any applicable debt instrument, any acquisition of the debt instrument by— “(i) the debtor which issued (or is otherwise the obligor under) the debt instrument, or “(ii) a related person to such debtor. “(B) Acquisition.— The term ‘acquisition’ shall, with respect to any applicable debt instrument, include an acquisition of the debt instrument for cash, the exchange of the debt instrument for another debt instrument (including an exchange resulting from a modification of the debt instrument), the exchange of the debt instrument for corporate stock or a partnership interest, and the contribution of the debt instrument to capital. Such term shall also include the complete forgiveness of the indebtedness by the holder of the debt instrument. “(5) Other definitions and rules.— For purposes of this subsection— “(A) Related person.— The determination of whether a person is related to another person shall be made in the same manner as under subsection (e)(4). “(B) Election.— “(i) In general.— An election under this subsection with respect to any applicable debt instrument shall be made by including with the return of tax imposed by chapter 1 for the taxable year in which the reacquisition of the debt instrument occurs a statement which— “(I) clearly identifies such instrument, and “(II) includes the amount of income to which paragraph (1) applies and such other information as the Secretary may prescribe. “(ii) Election irrevocable.— Such election, once made, is irrevocable. “(iii) Pass-thru entities.— In the case of a partnership, S corporation, or other pass-thru entity, the election under this subsection shall be made by the partnership, the S corporation, or other entity involved. “(C) Coordination with other exclusions.— If a taxpayer elects to have this subsection apply to an applicable debt instrument, subparagraphs (A), (B), (C), and (D) of subsection (a)(1) shall not apply to the income from the discharge of such indebtedness for the taxable year of the election or any subsequent taxable year. “(D) Acceleration of deferred items.— “(i) In general.— In the case of the death of the taxpayer, the liquidation or sale of substantially all the assets of the taxpayer (including in a title 11 or similar case), the cessation of business by the taxpayer, or similar circumstances, any item of income or deduction which is deferred under this subsection (and has not previously been taken into account) shall be taken into account in the taxable year in which such event occurs (or in the case of a title 11 or similar case, the day before the petition is filed). “(ii) Special rule for pass-thru entities.— The rule of clause (i) shall also apply in the case of the sale or exchange or redemption of an interest in a partnership, S corporation, or other pass- thru entity by a partner, shareholder, or other person holding an ownership interest in such entity. “(6) Special rule for partnerships.— In the case of a partnership, any income deferred under this subsection shall be allocated to the partners in the partnership immediately before the discharge in the manner such amounts would have been included in the distributive shares of such partners under section 704 if such income were recognized at such time. Any decrease in a partner’s share of partnership liabilities as a result of such discharge shall not be taken into account for purposes of section 752 at the time of the discharge to the extent it would cause the partner to recognize gain under section 731. Any decrease in partnership liabilities deferred under the preceding sentence shall be taken into account by such partner at the same time, and to the extent remaining in the same amount, as income deferred under this subsection is recognized. “(7) Secretarial authority.— The Secretary may prescribe such regulations, rules, or other guidance as may be necessary or appropriate for purposes of applying this subsection, including— “(A) extending the application of the rules of paragraph (5)(D) to other circumstances where appropriate, “(B) requiring reporting of the election (and such other information as the Secretary may require) on returns of tax for subsequent taxable years, and “(C) rules for the application of this subsection to partnerships, S corporations, and other pass-thru entities, including for the allocation of deferred deductions.” . (b) Effective Date.— The amendments made by this section shall apply to discharges in taxable years ending after December 31, 2008. SEC. 1232. MODIFICATIONS OF RULES FOR ORIGINAL ISSUE DISCOUNT ON CERTAIN HIGH YIELD OBLIGATIONS. (a) Suspension of Special Rules.— Section 163(e)(5) 26 USC 163. (relating to special rules for original issue discount on certain high yield obligations) is amended by redesignating subparagraph (F) as subparagraph (G) and by inserting after subparagraph (E) the following new subparagraph: “(F) Suspension of application of paragraph.— “(i) Temporary suspension.— This Time period. paragraph shall not apply to any applicable high yield discount obligation issued during the period beginning on September 1, 2008, and ending on December 31, 2009, in exchange (including an exchange resulting from a modification of the debt instrument) for an obligation which is not an applicable high yield discount obligation and the issuer (or obligor) of which is the same as the issuer (or obligor) of such applicable high yield discount obligation. The preceding sentence shall not apply to any obligation the interest on which is interest described in section 871(h)(4) (without regard to subparagraph (D) thereof) or to any obligation issued to a related person (within the meaning of section 108(e)(4)). “(ii) Successive application.— Any obligation to which clause (i) applies shall not be treated as an applicable high yield discount obligation for purposes of applying this subparagraph to any other obligation issued in exchange for such obligation. “(iii) Secretarial authority to suspend application.— The Secretary may apply this paragraph with respect to debt instruments issued in periods following the period described in clause (i) if the Secretary determines that such application is appropriate in light of distressed conditions in the debt capital markets.” . (b) Interest Rate Used in Determining High Yield Obligations.— The last sentence of section 163(i)(1) is amended— (1) by inserting “(i)” after “regulation”, and (2) by inserting “, or (ii) permit, on a temporary basis, a rate to be used with respect to any debt instrument which is higher than the applicable Federal rate if the Secretary determines that such rate is appropriate in light of distressed conditions in the debt capital markets” before the period at the end. (c) Effective Date.— (1) Suspension.— The amendments made by subsection (a) shall apply to obligations issued after August 31, 2008, in taxable years ending after such date. (2) Interest rate authority.— The amendments made by subsection (b) shall apply to obligations issued after December 31, 2009, in taxable years ending after such date. PART V— QUALIFIED SMALL BUSINESS STOCK SEC. 1241. SPECIAL RULES APPLICABLE TO QUALIFIED SMALL BUSINESS STOCK FOR 2009 AND 2010. (a) In General.— Section 1202(a) is amended by adding at the end the following new paragraph: “(3) Special rules for 2009 and 2010.— In the case of qualified small business stock acquired after the date of the enactment of this paragraph and before January 1, 2011— “(A) paragraph (1) shall be applied by substituting ‘75 percent’ for ‘50 percent’, and “(B) paragraph (2) shall not apply.” . (b) Effective Date.— The amendment made by this section shall apply to stock acquired after the date of the enactment of this Act. PART VI— S CORPORATIONS SEC. 1251. TEMPORARY REDUCTION IN RECOGNITION PERIOD FOR BUILT-IN GAINS TAX. (a) In General.— Paragraph (7) of section 1374(d) 26 USC 1374. (relating to definitions and special rules) is amended to read as follows: “(7) Recognition period.— “(A) In general.— The term ‘recognition period’ means the 10-year period beginning with the 1st day of the 1st taxable year for which the corporation was an S corporation. “(B) Special rule for 2009 and 2010.— In the case of any taxable year beginning in 2009 or 2010, no tax shall be imposed on the net recognized built-in gain of an S corporation if the 7th taxable year in the recognition period preceded such taxable year. Applicability. The preceding sentence shall be applied separately with respect to any asset to which paragraph (8) applies. “(C) Special rule for distributions to shareholders.— For purposes of applying this section to any amount includible in income by reason of distributions to shareholders pursuant to section 593(e)— “(i) subparagraph (A) shall be applied without regard to the phrase ‘10-year’, and “(ii) subparagraph (B) shall not apply.” . (b) Effective Date.— The amendment made by this section shall apply to taxable years beginning after December 31, 2008. PART VII— RULES RELATING TO OWNERSHIP CHANGES SEC. 1261. CLARIFICATION OF REGULATIONS RELATED TO LIMITATIONS ON CERTAIN BUILT-IN LOSSES FOLLOWING AN OWNERSHIP CHANGE. (a) Findings.— Congress finds as follows: (1) The delegation of authority to the Secretary of the Treasury under section 382(m) of the Internal Revenue Code of 1986 does not authorize the Secretary to provide exemptions or special rules that are restricted to particular industries or classes of taxpayers. (2) Internal Revenue Service Notice 2008–83 is inconsistent with the congressional intent in enacting such section 382(m). (3) The legal authority to prescribe Internal Revenue Service Notice 2008–83 is doubtful. (4) However, as taxpayers should generally be able to rely on guidance issued by the Secretary of the Treasury legislation is necessary to clarify the force and effect of Internal Revenue Service Notice 2008–83 and restore the proper application under the Internal Revenue Code of 1986 of the limitation on built-in losses following an ownership change of a bank. (b) Determination of Force and Effect of Internal Revenue Service Notice 2008–83 Exempting Banks From Limitation on Certain Built–in Losses Following Ownership Change.— (1) In general.— Internal Revenue Service Notice 2008–83— (A) shall be deemed to have the force and effect of law with respect to any ownership change (as defined in section 382(g) of the Internal Revenue Code of 1986) occurring on or before January 16, 2009, and (B) shall have no force or effect with respect to any ownership change after such date. (2) Binding contracts.— Notwithstanding paragraph (1), Internal Revenue Service Notice 2008–83 shall have the force and effect of law with respect to any ownership change (as so defined) which occurs after January 16, 2009, if such change— (A) is pursuant to a written binding contract entered into on or before such date, or (B) is pursuant to a written agreement entered into on or before such date and such agreement was described on or before such date in a public announcement or in a filing with the Securities and Exchange Commission required by reason of such ownership change. SEC. 1262. TREATMENT OF CERTAIN OWNERSHIP CHANGES FOR PURPOSES OF LIMITATIONS ON NET OPERATING LOSS CARRYFORWARDS AND CERTAIN BUILT-IN LOSSES. (a) In General.— Section 382 26 USC 382. is amended by adding at the end the following new subsection: “(n) Special Rule for Certain Ownership Changes.— “(1) In general.— The limitation contained in subsection (a) shall not apply in the case of an ownership change which is pursuant to a restructuring plan of a taxpayer which— “(A) is required under a loan agreement or a commitment for a line of credit entered into with the Department of the Treasury under the Emergency Economic Stabilization Act of 2008, and “(B) is intended to result in a rationalization of the costs, capitalization, and capacity with respect to the manufacturing workforce of, and suppliers to, the taxpayer and its subsidiaries. “(2) Subsequent acquisitions.— Paragraph (1) shall not apply in the case of any subsequent ownership change unless such ownership change is described in such paragraph. “(3) Limitation based on control in corporation.— “(A) In general.— Paragraph (1) shall not apply in the case of any ownership change if, immediately after such ownership change, any person (other than a voluntary employees’ beneficiary association under section 501(c)(9)) owns stock of the new loss corporation possessing 50 percent or more of the total combined voting power of all classes of stock entitled to vote, or of the total value of the stock of such corporation. “(B) Treatment of related persons.— “(i) In general.— Related persons shall be treated as a single person for purposes of this paragraph. “(ii) Related persons.— For purposes of clause (i), a person shall be treated as related to another person if— “(I) such person bears a relationship to such other person described in section 267(b) or 707(b), or “(II) such persons are members of a group of persons acting in concert.” . (b) Effective Date.— The amendment made by this section shall apply to ownership changes after the date of the enactment of this Act. Subtitle D— Manufacturing Recovery Provisions SEC. 1301. TEMPORARY EXPANSION OF AVAILABILITY OF INDUSTRIAL DEVELOPMENT BONDS TO FACILITIES MANUFACTURING INTANGIBLE PROPERTY. (a) In General.— Subparagraph (C) of section 144(a)(12) 26 USC 144. is amended— (1) by striking “For purposes of this paragraph, the term” and inserting “For purposes of this paragraph— “(i) In general.— The term” , and (2) by striking the last sentence and inserting the following new clauses: “(ii) Certain facilities included.— Such term includes facilities which are directly related and ancillary to a manufacturing facility (determined without regard to this clause) if— “(I) such facilities are located on the same site as the manufacturing facility, and “(II) not more than 25 percent of the net proceeds of the issue are used to provide such facilities. “(iii) Special rules for bonds issued in 2009 and 2010.— In the case of any issue made after the date of enactment of this clause and before January 1, 2011, clause (ii) shall not apply and the net proceeds from a bond shall be considered to be used to provide a manufacturing facility if such proceeds are used to provide— “(I) a facility which is used in the creation or production of intangible property which is described in section 197(d)(1)(C)(iii), or “(II) a facility which is functionally related and subordinate to a manufacturing facility (determined without regard to this subclause) if such facility is located on the same site as the manufacturing facility.” . (b) Effective Date.— The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act. SEC. 1302. CREDIT FOR INVESTMENT IN ADVANCED ENERGY FACILITIES. (a) In General.— Section 46 26 USC 46. (relating to amount of credit) is amended by striking “and” at the end of paragraph (3), by striking the period at the end of paragraph (4), and by adding at the end the following new paragraph: “(5) the qualifying advanced energy project credit.” . (b) Amount of Credit.— Subpart E of part IV of subchapter A of chapter 1 (relating to rules for computing investment credit) is amended by inserting after section 48B the following new section: “SEC. 48C. QUALIFYING ADVANCED ENERGY PROJECT CREDIT. “(a) In General.— For purposes of section 46, the qualifying advanced energy project credit for any taxable year is an amount equal to 30 percent of the qualified investment for such taxable year with respect to any qualifying advanced energy project of the taxpayer. “(b) Qualified Investment.— “(1) In general.— For purposes of subsection (a), the qualified investment for any taxable year is the basis of eligible property placed in service by the taxpayer during such taxable year which is part of a qualifying advanced energy project. “(2) Certain qualified progress expenditures rules made applicable.— Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this section. “(3) Limitation.— The amount which is treated for all taxable years with respect to any qualifying advanced energy project shall not exceed the amount designated by the Secretary as eligible for the credit under this section. “(c) Definitions.— “(1) Qualifying advanced energy project.— “(A) In general.— The term ‘qualifying advanced energy project’ means a project— “(i) which re-equips, expands, or establishes a manufacturing facility for the production of— “(I) property designed to be used to produce energy from the sun, wind, geothermal deposits (within the meaning of section 613(e)(2)), or other renewable resources, “(II) fuel cells, microturbines, or an energy storage system for use with electric or hybrid-electric motor vehicles, “(III) electric grids to support the transmission of intermittent sources of renewable energy, including storage of such energy, “(IV) property designed to capture and sequester carbon dioxide emissions, “(V) property designed to refine or blend renewable fuels or to produce energy conservation technologies (including energy-conserving lighting technologies and smart grid technologies), “(VI) new qualified plug-in electric drive motor vehicles (as defined by section 30D), qualified plug-in electric vehicles (as defined by section 30(d)), or components which are designed specifically for use with such vehicles, including electric motors, generators, and power control units, or “(VII) other advanced energy property designed to reduce greenhouse gas emissions as may be determined by the Secretary, and “(ii) any portion of the qualified investment of which is certified by the Secretary under subsection (d) as eligible for a credit under this section. “(B) Exception.— Such term shall not include any portion of a project for the production of any property which is used in the refining or blending of any transportation fuel (other than renewable fuels). “(2) Eligible property.— The term ‘eligible property’ means any property— “(A) which is necessary for the production of property described in paragraph (1)(A)(i), “(B) which is— “(i) tangible personal property, or “(ii) other tangible property (not including a building or its structural components), but only if such property is used as an integral part of the qualified investment credit facility, and “(C) with respect to which depreciation (or amortization in lieu of depreciation) is allowable. “(d) Qualifying Advanced Energy Project Program.— “(1) Establishment.— “(A) In general.— Not later Deadline. than 180 days after the date of enactment of this section, the Secretary, in consultation with the Secretary of Energy, shall establish a qualifying advanced energy project program to consider and award certifications for qualified investments eligible for credits under this section to qualifying advanced energy project sponsors. “(B) Limitation.— The total amount of credits that may be allocated under the program shall not exceed $2,300,000,000. “(2) Certification.— “(A) Application period.— Each applicant for certification under this paragraph shall submit an application containing such information as the Secretary may require during the 2-year period beginning on the date the Secretary establishes the program under paragraph (1). “(B) Time to meet criteria for certification.— Each applicant for certification shall have 1 year from the date of acceptance by the Secretary of the application during which to provide to the Secretary evidence that the requirements of the certification have been met. “(C) Period of issuance.— An applicant which receives a certification shall have 3 years from the date of issuance of the certification in order to place the project in service and if such project is not placed in service by that time period, then the certification shall no longer be valid. “(3) Selection criteria.— In determining which qualifying advanced energy projects to certify under this section, the Secretary— “(A) shall take into consideration only those projects where there is a reasonable expectation of commercial viability, and “(B) shall take into consideration which projects— “(i) will provide the greatest domestic job creation (both direct and indirect) during the credit period, “(ii) will provide the greatest net impact in avoiding or reducing air pollutants or anthropogenic emissions of greenhouse gases, “(iii) have the greatest potential for technological innovation and commercial deployment, “(iv) have the lowest levelized cost of generated or stored energy, or of measured reduction in energy consumption or greenhouse gas emission (based on costs of the full supply chain), and “(v) have the shortest project time from certification to completion. “(4) Review and redistribution.— “(A) Review.— Not later than 4 years after the date of enactment of this section, the Secretary shall review the credits allocated under this section as of such date. “(B) Redistribution.— The Secretary may reallocate credits awarded under this section if the Secretary determines that— “(i) there is an insufficient quantity of qualifying applications for certification pending at the time of the review, or “(ii) any certification made pursuant to paragraph (2) has been revoked pursuant to paragraph (2)(B) because the project subject to the certification has been delayed as a result of third party opposition or litigation to the proposed project. “(C) Reallocation.— If the Secretary determines that credits under this section are available for reallocation pursuant to the requirements set forth in paragraph (2), the Secretary is authorized to conduct an additional program for applications for certification. “(5) Disclosure of allocations.— The Secretary shall, upon making a certification under this subsection, publicly disclose the identity of the applicant and the amount of the credit with respect to such applicant. “(e) Denial of Double Benefit.— A credit shall not be allowed under this section for any qualified investment for which a credit is allowed under section 48, 48A, or 48B.” . (c) Conforming Amendments.— (1) Section 49(a)(1)(C) 26 USC 49. is amended by striking “and” at the end of clause (iii), by striking the period at the end of clause (iv) and inserting “, and”, and by adding after clause (iv) the following new clause: “(v) the basis of any property which is part of a qualifying advanced energy project under section 48C.” . (2) The table of sections for subpart E of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 48B the following new item: “48C. Qualifying advanced energy project credit.”. (d) Effective Date.— The amendments made by this section shall apply to periods after the date of the enactment of this Act, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990). Subtitle E— Economic Recovery Tools SEC. 1401. RECOVERY ZONE BONDS. (a) In General.— Subchapter Y of chapter 1 is amended by adding at the end the following new part: “PART III— RECOVERY ZONE BONDS “Sec. 1400U–1.  Allocation of recovery zone bonds. “Sec. 1400U–2.  Recovery zone economic development bonds. “Sec. 1400U–3.  Recovery zone facility bonds. “SEC. 1400U–1. ALLOCATION OF RECOVERY ZONE BONDS. “(a) Allocations.— “(1) In general.— “(A) General allocation.— The Secretary shall allocate the national recovery zone economic development bond limitation and the national recovery zone facility bond limitation among the States in the proportion that each such State’s 2008 State employment decline bears to the aggregate of the 2008 State employment declines for all of the States. “(B) Minimum allocation.— The Secretary shall adjust the allocations under subparagraph (A) for any calendar year for each State to the extent necessary to ensure that no State receives less than 0.9 percent of the national recovery zone economic development bond limitation and 0.9 percent of the national recovery zone facility bond limitation. “(2) 2008 state employment decline.— For purposes of this subsection, the term ‘2008 State employment decline’ means, with respect to any State, the excess (if any) of— “(A) the number of individuals employed in such State determined for December 2007, over “(B) the number of individuals employed in such State determined for December 2008. “(3) Allocations by states.— “(A) In general.— Each State with respect to which an allocation is made under paragraph (1) shall reallocate such allocation among the counties and large municipalities in such State in the proportion to each such county’s or municipality’s 2008 employment decline bears to the aggregate of the 2008 employment declines for all the counties and municipalities in such State. Waiver authority. A county or municipality may waive any portion of an allocation made under this subparagraph. “(B) Large municipalities.— For purposes of subparagraph (A), the term ‘large municipality’ means a municipality with a population of more than 100,000. “(C) Determination of local employment declines.— For purposes of this paragraph, the employment decline of any municipality or county shall be determined in the same manner as determining the State employment decline under paragraph (2), except that in the case of a municipality any portion of which is in a county, such portion shall be treated as part of such municipality and not part of such county. “(4) National limitations.— “(A) Recovery zone economic development bonds.— There is a national recovery zone economic development bond limitation of $10,000,000,000. “(B) Recovery zone facility bonds.— There is a national recovery zone facility bond limitation of $15,000,000,000. “(b) Recovery Zone.— For purposes of this part, the term ‘recovery zone’ means— “(1) any area designated by the issuer as having significant poverty, unemployment, rate of home foreclosures, or general distress, “(2) any area designated by the issuer as economically distressed by reason of the closure or realignment of a military installation pursuant to the Defense Base Closure and Realignment Act of 1990, and “(3) any area for which a designation as an empowerment zone or renewal community is in effect. “SEC. 1400U–2. RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS. “(a) In General.— In the case of a recovery zone economic development bond— “(1) such bond shall be treated as a qualified bond for purposes of section 6431, and “(2) subsection (b) of such section shall be applied by substituting ‘45 percent’ for ‘35 percent’. “(b) Recovery Zone Economic Development Bond.— “(1) In general.— For purposes of this section, the term ‘recovery zone economic development bond’ means any build America bond (as defined in section 54AA(d)) issued before January 1, 2011, as part of issue if— “(A) 100 percent of the excess of— “(i) the available project proceeds (as defined in section 54A) of such issue, over “(ii) the amounts in a reasonably required reserve (within the meaning of section 150(a)(3)) with respect to such issue, are to be used for one or more qualified economic development purposes, and “(B) the issuer designates such bond for purposes of this section. “(2) Limitation on amount of bonds designated.— The maximum aggregate face amount of bonds which may be designated by any issuer under paragraph (1) shall not exceed the amount of the recovery zone economic development bond limitation allocated to such issuer under section 1400U–1. “(c) Qualified Economic Development Purpose.— For purposes of this section, the term ‘qualified economic development purpose’ means expenditures for purposes of promoting development or other economic activity in a recovery zone, including— “(1) capital expenditures paid or incurred with respect to property located in such zone, “(2) expenditures for public infrastructure and construction of public facilities, and “(3) expenditures for job training and educational programs. “SEC. 1400U–3. RECOVERY ZONE FACILITY BONDS. “(a) In General.— For purposes of part IV of subchapter B (relating to tax exemption requirements for State and local bonds), the term ‘exempt facility bond’ includes any recovery zone facility bond. “(b) Recovery Zone Facility Bond.— “(1) In general.— For purposes of this section, the term ‘recovery zone facility bond’ means any bond issued as part of an issue if— “(A) 95 percent or more of the net proceeds (as defined in section 150(a)(3)) of such issue are to be used for recovery zone property, “(B) such bond is issued before January 1, 2011, and “(C) the issuer designates such bond for purposes of this section. “(2) Limitation on amount of bonds designated.— The maximum aggregate face amount of bonds which may be designated by any issuer under paragraph (1) shall not exceed the amount of recovery zone facility bond limitation allocated to such issuer under section 1400U–1. “(c) Recovery Zone Property.— For purposes of this section— “(1) In general.— The term ‘recovery zone property’ means any property to which section 168 applies (or would apply but for section 179) if— “(A) such property was constructed, reconstructed, renovated, or acquired by purchase (as defined in section 179(d)(2)) by the taxpayer after the date on which the designation of the recovery zone took effect, “(B) the original use of which in the recovery zone commences with the taxpayer, and “(C) substantially all of the use of which is in the recovery zone and is in the active conduct of a qualified business by the taxpayer in such zone. “(2) Qualified business.— The term ‘qualified business’ means any trade or business except that— “(A) the rental to others of real property located in a recovery zone shall be treated as a qualified business only if the property is not residential rental property (as defined in section 168(e)(2)), and “(B) such term shall not include any trade or business consisting of the operation of any facility described in section 144(c)(6)(B). “(3) Special rules for substantial renovations and sale-leaseback.— Rules similar Applicability. to the rules of subsections (a)(2) and (b) of section 1397D shall apply for purposes of this subsection. “(d) Nonapplication of Certain Rules.— Sections 146 (relating to volume cap) and 147(d) (relating to acquisition of existing property not permitted) shall not apply to any recovery zone facility bond.” . (b) Clerical Amendment.— The table of parts for subchapter Y of chapter 1 of such Code is amended by adding at the end the following new item: “Part III. Recovery Zone Bonds.”. (c) Effective Date.— The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act. SEC. 1402. TRIBAL ECONOMIC DEVELOPMENT BONDS. (a) In General.— Section 7871 26 USC 7871. is amended by adding at the end the following new subsection: “(f) Tribal Economic Development Bonds.— “(1) Allocation of limitation.— “(A) In general.— The Secretary shall allocate the national tribal economic development bond limitation among the Indian tribal governments in such manner as the Secretary, in consultation with the Secretary of the Interior, determines appropriate. “(B) National limitation.— There is a national tribal economic development bond limitation of $2,000,000,000. “(2) Bonds treated as exempt from tax.— In the case of a tribal economic development bond— “(A) notwithstanding subsection (c), such bond shall be treated for purposes of this title in the same manner as if such bond were issued by a State, “(B) the Indian tribal government issuing such bond and any instrumentality of such Indian tribal government shall be treated as a State for purposes of section 141, and “(C) section 146 shall not apply. “(3) Tribal economic development bond.— “(A) In general.— For purposes of this section, the term ‘tribal economic development bond’ means any bond issued by an Indian tribal government— “(i) the interest on which would be exempt from tax under section 103 if issued by a State or local government, and “(ii) which is designated by the Indian tribal government as a tribal economic development bond for purposes of this subsection. “(B) Exceptions.— Such term shall not include any bond issued as part of an issue if any portion of the proceeds of such issue are used to finance— “(i) any portion of a building in which class II or class III gaming (as defined in section 4 of the Indian Gaming Regulatory Act) is conducted or housed or any other property actually used in the conduct of such gaming, or “(ii) any facility located outside the Indian reservation (as defined in section 168(j)(6)). “(C) Limitation on amount of bonds designated.— The maximum aggregate face amount of bonds which may be designated by any Indian tribal government under subparagraph (A) shall not exceed the amount of national tribal economic development bond limitation allocated to such government under paragraph (1).” . (b) Study.— The Secretary of the Treasury, or the Secretary’s delegate, shall conduct a study of the effects of the amendment made by subsection (a). Deadline. Reports. Not later than 1 year after the date of the enactment of this Act, the Secretary of the Treasury, or the Secretary’s delegate, shall report to Congress on the results of the study conducted under this paragraph, including the Secretary’s recommendations regarding such amendment. (c) Effective Date.— The amendment made by subsection (a) shall apply to obligations issued after the date of the enactment of this Act. SEC. 1403. INCREASE IN NEW MARKETS TAX CREDIT. (a) In General.— Section 45D(f)(1) 26 USC 45. is amended— (1) by striking “and” at the end of subparagraph (C), (2) by striking “, 2007, 2008, and 2009.” in subparagraph (D), and inserting “and 2007,”, and (3) by adding at the end the following new subparagraphs: “(E) $5,000,000,000 for 2008, and “(F) $5,000,000,000 for 2009.” . (b) Special Rule for Allocation of Increased 2008 Limitation.— The amount of the increase in the new markets tax credit limitation for calendar year 2008 by reason of the amendments made by subsection (a) shall be allocated in accordance with section 45D(f)(2) of the Internal Revenue Code of 1986 to qualified community development entities (as defined in section 45D(c) of such Code) which— (1) submitted an allocation application with respect to calendar year 2008, and (2) (A) did not receive an allocation for such calendar year, or (B) received an allocation for such calendar year in an amount less than the amount requested in the allocation application. SEC. 1404. COORDINATION OF LOW-INCOME HOUSING CREDIT AND LOW-INCOME HOUSING GRANTS.   Subsection (i) of section 42 is amended by adding at the end the following new paragraph: “(9) Coordination with low-income housing grants.— “(A) Reduction in state housing credit ceiling for low-income housing grants received in 2009.— For purposes of this section, the amounts described in clauses (i) through (iv) of subsection (h)(3)(C) with respect to any State for 2009 shall each be reduced by so much of such amount as is taken into account in determining the amount of any grant to such State under section 1602 of the American Recovery and Reinvestment Tax Act of 2009. “(B) Special rule for basis.— Basis of a qualified low-income building shall not be reduced by the amount of any grant described in subparagraph (A).” . Subtitle F— Infrastructure Financing Tools PART I— IMPROVED MARKETABILITY FOR TAX-EXEMPT BONDS SEC. 1501. DE MINIMIS SAFE HARBOR EXCEPTION FOR TAX-EXEMPT INTEREST EXPENSE OF FINANCIAL INSTITUTIONS. (a) In General.— Subsection (b) of section 265 26 USC 265. is amended by adding at the end the following new paragraph: “(7) De minimis exception for bonds issued during 2009 or 2010.— “(A) In general.— In applying paragraph (2)(A), there shall not be taken into account tax-exempt obligations issued during 2009 or 2010. “(B) Limitation.— The amount of tax-exempt obligations not taken into account by reason of subparagraph (A) shall not exceed 2 percent of the amount determined under paragraph (2)(B). “(C) Refundings.— For purposes of this paragraph, a refunding bond (whether a current or advance refunding) shall be treated as issued on the date of the issuance of the refunded bond (or in the case of a series of refundings, the original bond).” . (b) Treatment as Financial Institution Preference Item.— Clause (iv) of section 291(e)(1)(B) is amended by adding at the end the following: “That portion of any obligation not taken into account under paragraph (2)(A) of section 265(b) by reason of paragraph (7) of such section shall be treated for purposes of this section as having been acquired on August 7, 1986.”. (c) Effective Date.— The amendments made by this section shall apply to obligations issued after December 31, 2008. SEC. 1502. MODIFICATION OF SMALL ISSUER EXCEPTION TO TAX-EXEMPT INTEREST EXPENSE ALLOCATION RULES FOR FINANCIAL INSTITUTIONS. (a) In General.— Paragraph (3) of section 265(b) (relating to exception for certain tax-exempt obligations) is amended by adding at the end the following new subparagraph: “(G) Special rules for obligations issued during 2009 and 2010.— “(i) Increase in limitation.— In the Applicability. case of obligations issued during 2009 or 2010, subparagraphs (C)(i), (D)(i), and (D)(iii)(II) shall each be applied by substituting ‘$30,000,000’ for ‘$10,000,000’. “(ii) Qualified 501(c)(3) bonds treated as issued by exempt organization.— In the Applicability. case of a qualified 501(c)(3) bond (as defined in section 145) issued during 2009 or 2010, this paragraph shall be applied by treating the 501(c)(3) organization for whose benefit such bond was issued as the issuer. “(iii) Special rule for qualified financings.— In the case of a qualified financing issue issued during 2009 or 2010— “(I) subparagraph (F) shall not apply, and “(II) any obligation issued as a part of such issue shall be treated as a qualified tax-exempt obligation if the requirements of this paragraph are met with respect to each qualified portion of the issue (determined by treating each qualified portion as a separate issue which is issued by the qualified borrower with respect to which such portion relates). “(iv) Qualified financing issue.— For purposes of this subparagraph, the term ‘qualified financing issue’ means any composite, pooled, or other conduit financing issue the proceeds of which are used directly or indirectly to make or finance loans to 1 or more ultimate borrowers each of whom is a qualified borrower. “(v) Qualified portion.— For purposes of this subparagraph, the term ‘qualified portion’ means that portion of the proceeds which are used with respect to each qualified borrower under the issue. “(vi) Qualified borrower.— For purposes of this subparagraph, the term ‘qualified borrower’ means a borrower which is a State or political subdivision thereof or an organization described in section 501(c)(3) and exempt from taxation under section 501(a).” . (b) Effective Date.— The amendment made by this section shall apply to obligations issued after December 31, 2008. SEC. 1503. TEMPORARY MODIFICATION OF ALTERNATIVE MINIMUM TAX LIMITATIONS ON TAX-EXEMPT BONDS. (a) Interest on Private Activity Bonds Issued During 2009 and 2010 Not Treated as Tax Preference Item.— Subparagraph (C) of section 57(a)(5) 26 USC 57. is amended by adding at the end a new clause: “(vi) Exception for bonds issued in 2009 and 2010.— “(I) In general.— For purposes of clause (i), the term ‘private activity bond’ shall not include any bond issued after December 31, 2008, and before January 1, 2011. “(II) Treatment of refunding bonds.— For purposes of subclause (I), a refunding bond (whether a current or advance refunding) shall be treated as issued on the date of the issuance of the refunded bond (or in the case of a series of refundings, the original bond). “(III) Exception for certain refunding bonds.— Subclause (II) shall not apply to any refunding bond which is issued to refund any bond which was issued after December 31, 2003, and before January 1, 2009.” . (b) No Adjustment to Adjusted Current Earnings for Interest on Tax-Exempt Bonds Issued During 2009 and 2010.— Subparagraph (B) of section 56(g)(4) is amended by adding at the end the following new clause: “(iv) Tax exempt interest on bonds issued in 2009 and 2010.— “(I) In general.— Clause (i) shall not apply in the case of any interest on a bond issued after December 31, 2008, and before January 1, 2011. “(II) Treatment of refunding bonds.— For purposes of subclause (I), a refunding bond (whether a current or advance refunding) shall be treated as issued on the date of the issuance of the refunded bond (or in the case of a series of refundings, the original bond). “(III) Exception for certain refunding bonds.— Subclause (II) shall not apply to any refunding bond which is issued to refund any bond which was issued after December 31, 2003, and before January 1, 2009.” . (c) Effective Date.— The amendments made by this section shall apply to obligations issued after December 31, 2008. SEC. 1504. MODIFICATION TO HIGH SPEED INTERCITY RAIL FACILITY BONDS. (a) In General.— Paragraph (1) of section 142(i) 26 USC 142. is amended by striking “operate at speeds in excess of” and inserting “be capable of attaining a maximum speed in excess of”. (b) Effective Date.— The amendment made by this section shall apply to obligations issued after the date of the enactment of this Act. PART II— DELAY IN APPLICATION OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS SEC. 1511. DELAY IN APPLICATION OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS.   Subsection (b) of section 511 of the Tax Increase Prevention and Reconciliation Act of 2005 26 USC 3402. is amended by striking “December 31, 2010” and inserting “December 31, 2011”. PART III— TAX CREDIT BONDS FOR SCHOOLS SEC. 1521. QUALIFIED SCHOOL CONSTRUCTION BONDS. (a) In General.— Subpart I of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section: “SEC. 54F. QUALIFIED SCHOOL CONSTRUCTION BONDS. “(a) Qualified School Construction Bond.— For purposes of this subchapter, the term ‘qualified school construction bond’ means any bond issued as part of an issue if— “(1) 100 percent of the available project proceeds of such issue are to be used for the construction, rehabilitation, or repair of a public school facility or for the acquisition of land on which such a facility is to be constructed with part of the proceeds of such issue, “(2) the bond is issued by a State or local government within the jurisdiction of which such school is located, and “(3) the issuer designates such bond for purposes of this section. “(b) Limitation on Amount of Bonds Designated.— The maximum aggregate face amount of bonds issued during any calendar year which may be designated under subsection (a) by any issuer shall not exceed the limitation amount allocated under subsection (d) for such calendar year to such issuer. “(c) National Limitation on Amount of Bonds Designated.— There is a national qualified school construction bond limitation for each calendar year. Such limitation is— “(1) $11,000,000,000 for 2009, “(2) $11,000,000,000 for 2010, and “(3) except as provided in subsection (e), zero after 2010. “(d) Allocation of Limitation.— “(1) Allocation among states.— Except as provided in paragraph (2)(C), the limitation applicable under subsection (c) for any calendar year shall be allocated by the Secretary among the States in proportion to the respective amounts each such State is eligible to receive under section 1124 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6333) for the most recent fiscal year ending before such calendar year. The limitation amount allocated to a State under the preceding sentence shall be allocated by the State to issuers within such State. “(2) 40 percent of limitation allocated among largest school districts.— “(A) In general.— 40 percent of the limitation applicable under subsection (c) for any calendar year shall be allocated under subparagraph (B) by the Secretary among local educational agencies which are large local educational agencies for such year. “(B) Allocation formula.— The amount to be allocated under subparagraph (A) for any calendar year shall be allocated among large local educational agencies in proportion to the respective amounts each such agency received under section 1124 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6333) for the most recent fiscal year ending before such calendar year. “(C) Reduction in state allocation.— The allocation to any State under paragraph (1) shall be reduced by the aggregate amount of the allocations under this paragraph to large local educational agencies within such State. “(D) Allocation of unused limitation to state.— The amount allocated under this paragraph to a large local educational agency for any calendar year may be reallocated by such agency to the State in which such agency is located for such calendar year. Any amount reallocated to a State under the preceding sentence may be allocated as provided in paragraph (1). “(E) Large local educational agency.— For purposes of this paragraph, the term ‘large local educational agency’ means, with respect to a calendar year, any local educational agency if such agency is— “(i) among the 100 local educational agencies with the largest numbers of children aged 5 through 17 from families living below the poverty level, as determined by the Secretary using the most recent data available from the Department of Commerce that are satisfactory to the Secretary, or “(ii) 1 of not more than 25 local educational agencies (other than those described in clause (i)) that the Secretary of Education determines (based on the most recent data available satisfactory to the Secretary) are in particular need of assistance, based on a low level of resources for school construction, a high level of enrollment growth, or such other factors as the Secretary deems appropriate. “(3) Allocations to certain possessions.— The amount to be allocated under paragraph (1) to any possession of the United States other than Puerto Rico shall be the amount which would have been allocated if all allocations under paragraph (1) were made on the basis of respective populations of individuals below the poverty line (as defined by the Office of Management and Budget). In making other allocations, the amount to be allocated under paragraph (1) shall be reduced by the aggregate amount allocated under this paragraph to possessions of the United States. “(4) Allocations for indian schools.— In addition to the amounts otherwise allocated under this subsection, $200,000,000 for calendar year 2009, and $200,000,000 for calendar year 2010, shall be allocated by the Secretary of the Interior for purposes of the construction, rehabilitation, and repair of schools funded by the Bureau of Indian Affairs. In the case of amounts allocated under the preceding sentence, Indian tribal governments (as defined in section 7701(a)(40)) shall be treated as qualified issuers for purposes of this subchapter. “(e) Carryover of Unused Limitation.— If for any calendar year— “(1) the amount allocated under subsection (d) to any State, exceeds “(2) the amount of bonds issued during such year which are designated under subsection (a) pursuant to such allocation, the limitation amount under such subsection for such State for the following calendar year shall be increased by the amount of such excess. Applicability. A similar rule shall apply to the amounts allocated under subsection (d)(4).” . (b) Conforming Amendments.— (1) Paragraph (1) of section 54A(d) 26 USC 54. is amended by striking “or” at the end of subparagraph (C), by inserting “or” at the end of subparagraph (D), and by inserting after subparagraph (D) the following new subparagraph: “(E) a qualified school construction bond,” . (2) Subparagraph (C) of section 54A(d)(2) is amended by striking “and” at the end of clause (iii), by striking the period at the end of clause (iv) and inserting “, and”, and by adding at the end the following new clause: “(v) in the case of a qualified school construction bond, a purpose specified in section 54F(a)(1).” . (3) The table of sections for subpart I of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item: “Sec. 54F.  Qualified school construction bonds.”. (c) Effective Date.— The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act. SEC. 1522. EXTENSION AND EXPANSION OF QUALIFIED ZONE ACADEMY BONDS. (a) In General.— Section 54E(c)(1) 26 USC 54. is amended by striking “and 2009” and inserting “and $1,400,000,000 for 2009 and 2010”. (b) Effective Date.— The amendment made by this section shall apply to obligations issued after December 31, 2008. PART IV— BUILD AMERICA BONDS SEC. 1531. BUILD AMERICA BONDS. (a) In General.— Part IV of subchapter A of chapter 1 is amended by adding at the end the following new subpart: “Subpart J— Build America Bonds “Sec. 54AA.  Build America bonds. “SEC. 54AA. BUILD AMERICA BONDS. “(a) In General.— If a taxpayer holds a build America bond on one or more interest payment dates of the bond during any taxable year, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the credits determined under subsection (b) with respect to such dates. “(b) Amount of Credit.— The amount of the credit determined under this subsection with respect to any interest payment date for a build America bond is 35 percent of the amount of interest payable by the issuer with respect to such date . “(c) Limitation Based on Amount of Tax.— “(1) In general.— The credit allowed under subsection (a) for any taxable year shall not exceed the excess of— “(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over “(B) the sum of the credits allowable under this part (other than subpart C and this subpart). “(2) Carryover of unused credit.— If the credit allowable under subsection (a) exceeds the limitation imposed by paragraph (1) for such taxable year, such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such taxable year (determined before the application of paragraph (1) for such succeeding taxable year). “(d) Build America Bond.— “(1) In general.— For purposes of this section, the term ‘build America bond’ means any obligation (other than a private activity bond) if— “(A) the interest on such obligation would (but for this section) be excludable from gross income under section 103, “(B) such obligation is issued before January 1, 2011, and “(C) the issuer makes an irrevocable election to have this section apply. “(2) Applicable rules.— For purposes of applying paragraph (1)— “(A) for purposes of section 149(b), a build America bond shall not be treated as federally guaranteed by reason of the credit allowed under subsection (a) or section 6431, “(B) for purposes of section 148, the yield on a build America bond shall be determined without regard to the credit allowed under subsection (a), and “(C) a bond shall not be treated as a build America bond if the issue price has more than a de minimis amount (determined under rules similar to the rules of section 1273(a)(3)) of premium over the stated principal amount of the bond. “(e) Interest Payment Date.— For purposes of this section, the term ‘interest payment date’ means any date on which the holder of record of the build America bond is entitled to a payment of interest under such bond. “(f) Special Rules.— “(1) Interest on build america bonds includible in gross income for federal income tax purposes.— For purposes of this title, interest on any build America bond shall be includible in gross income. “(2) Application of certain rules.— Rules similar to the rules of subsections (f), (g), (h), and (i) of section 54A shall apply for purposes of the credit allowed under subsection (a). “(g) Special Rule for Qualified Bonds Issued Before 2011.— In the case of a qualified bond issued before January 1, 2011— “(1) Issuer allowed refundable credit.— In lieu of any credit allowed under this section with respect to such bond, the issuer of such bond shall be allowed a credit as provided in section 6431. “(2) Qualified bond.— For purposes of this subsection, the term ‘qualified bond’ means any build America bond issued as part of an issue if— “(A) 100 percent of the excess of— “(i) the available project proceeds (as defined in section 54A) of such issue, over “(ii) the amounts in a reasonably required reserve (within the meaning of section 150(a)(3)) with respect to such issue, are to be used for capital expenditures, and “(B) the issuer makes an irrevocable election to have this subsection apply. “(h) Regulations.— The Secretary may prescribe such regulations and other guidance as may be necessary or appropriate to carry out this section and section 6431.” . (b) Credit for Qualified Bonds Issued Before 2011.— Subchapter B of chapter 65 is amended by adding at the end the following new section: “SEC. 6431. CREDIT FOR QUALIFIED BONDS ALLOWED TO ISSUER. “(a) In General.— In the case of a qualified bond issued before January 1, 2011, the issuer of such bond shall be allowed a credit with respect to each interest payment under such bond which shall be payable by the Secretary as provided in subsection (b). “(b) Payment of Credit.— The Secretary shall pay (contemporaneously with each interest payment date under such bond) to the issuer of such bond (or to any person who makes such interest payments on behalf of the issuer) 35 percent of the interest payable under such bond on such date. “(c) Application of Arbitrage Rules.— For purposes of section 148, the yield on a qualified bond shall be reduced by the credit allowed under this section. “(d) Interest Payment Date.— For purposes of this subsection, the term ‘interest payment date’ means each date on which interest is payable by the issuer under the terms of the bond. “(e) Qualified Bond.— For purposes of this subsection, the term ‘qualified bond’ has the meaning given such term in section 54AA(g).” . (c) Conforming Amendments.— (1) Section 1324(b)(2) of title 31, United States Code, is amended by striking “or 6428” and inserting “6428, or 6431,”. (2) Section 54A(c)(1)(B) 26 USC 54. is amended by striking “subpart C” and inserting “subparts C and J”. (3) Sections 54(c)(2), 1397E(c)(2), and 1400N(l)(3)(B) are each amended by striking “and I” and inserting “, I, and J”. (4) Section 6211(b)(4)(A) is amended by striking “and 6428” and inserting “6428, and 6431”. (5) Section 6401(b)(1) is amended by striking “and I” and inserting “I, and J”. (6) The table of subparts for part IV of subchapter A of chapter 1 is amended by adding at the end the following new item: “subpart j. build america bonds.”. (7) The table of section for subchapter B of chapter 65 is amended by adding at the end the following new item: “Sec. 6431.  Credit for qualified bonds allowed to issuer.”. (d) Transitional Coordination With State Law.— Except as otherwise provided by a State after the date of the enactment of this Act, the interest on any build America bond (as defined in section 54AA of the Internal Revenue Code of 1986, as added by this section) and the amount of any credit determined under such section with respect to such bond shall be treated for purposes of the income tax laws of such State as being exempt from Federal income tax. (e) Effective Date.— The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act. PART V— REGULATED INVESTMENT COMPANIES ALLOWED TO PASS-THRU TAX CREDIT BOND CREDITS SEC. 1541. REGULATED INVESTMENT COMPANIES ALLOWED TO PASS-THRU TAX CREDIT BOND CREDITS. (a) In General.— Part I of subchapter M of chapter 1 is amended by inserting after section 853 the following new section: “SEC. 853A. CREDITS FROM TAX CREDIT BONDS ALLOWED TO SHAREHOLDERS. “(a) General Rule.— A regulated investment company— “(1) which holds (directly or indirectly) one or more tax credit bonds on one or more applicable dates during the taxable year, and “(2) which meets the requirements of section 852(a) for the taxable year, may elect the application of this section with respect to credits allowable to the investment company during such taxable year with respect to such bonds. “(b) Effect of Election.— If the election provided in subsection (a) is in effect for any taxable year— “(1) the regulated investment company shall not be allowed any credits to which subsection (a) applies for such taxable year, “(2) the regulated investment company shall— “(A) include in gross income (as interest) for such taxable year an amount equal to the amount that such investment company would have included in gross income with respect to such credits if this section did not apply, and “(B) increase the amount of the dividends paid deduction for such taxable year by the amount of such income, and “(3) each shareholder of such investment company shall— “(A) include in gross income an amount equal to such shareholder’s proportionate share of the interest income attributable to such credits, and “(B) be allowed the shareholder’s proportionate share of such credits against the tax imposed by this chapter. “(c) Notice to Shareholders.— For purposes of subsection (b)(3), the shareholder’s proportionate share of— “(1) credits described in subsection (a), and “(2) gross income in respect of such credits, shall not exceed the amounts so designated by the regulated investment company in a written notice mailed to its shareholders not later than 60 days after the close of its taxable year. “(d) Manner of Making Election and Notifying Shareholders.— The election provided in subsection (a) and the notice to shareholders required by subsection (c) shall be made in such manner as the Secretary may prescribe. “(e) Definitions and Special Rules.— “(1) Definitions.— For purposes of this subsection— “(A) Tax credit bond.— The term ‘tax credit bond’ means— “(i) a qualified tax credit bond (as defined in section 54A(d)), “(ii) a build America bond (as defined in section 54AA(d)), and “(iii) any bond for which a credit is allowable under subpart H of part IV of subchapter A of this chapter. “(B) Applicable date.— The term ‘applicable date’ means— “(i) in the case of a qualified tax credit bond or a bond described in subparagraph (A)(iii), any credit allowance date (as defined in section 54A(e)(1)), and “(ii) in the case of a build America bond (as defined in section 54AA(d)), any interest payment date (as defined in section 54AA(e)). “(2) Stripped tax credit bonds.— If the ownership of a tax credit bond is separated from the credit with respect to such bond, subsection (a) shall be applied by reference to the instruments evidencing the entitlement to the credit rather than the tax credit bond. “(f) Regulations, etc.— The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including methods for determining a shareholder’s proportionate share of credits.” . (b) Conforming Amendments.— (1) Section 54(l) 26 USC 54. is amended by striking paragraph (4) and by redesignating paragraphs (5) and (6) as paragraphs (4) and (5), respectively. (2) Section 54A(h) is amended to read as follows: “(h) Bonds Held by Real Estate Investment Trusts.— If any qualified tax credit bond is held by a real estate investment trust, the credit determined under subsection (a) shall be allowed to beneficiaries of such trust (and any gross income included under subsection (f) with respect to such credit shall be distributed to such beneficiaries) under procedures prescribed by the Secretary.” . (3) The table of sections for part I of subchapter M of chapter 1 is amended by inserting after the item relating to section 853 the following new item: “Sec. 853A.  Credits from tax credit bonds allowed to shareholders.”. (c) Effective Date.— The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act. Subtitle G— Other Provisions SEC. 1601. APPLICATION OF CERTAIN LABOR STANDARDS TO PROJECTS FINANCED WITH CERTAIN TAX-FAVORED BONDS.   Subchapter IV of chapter 31 of the title 40, United States Code, shall apply to projects financed with the proceeds of— (1) any new clean renewable energy bond (as defined in section 54C of the Internal Revenue Code of 1986) issued after the date of the enactment of this Act, (2) any qualified energy conservation bond (as defined in section 54D of the Internal Revenue Code of 1986) issued after the date of the enactment of this Act, (3) any qualified zone academy bond (as defined in section 54E of the Internal Revenue Code of 1986) issued after the date of the enactment of this Act, (4) any qualified school construction bond (as defined in section 54F of the Internal Revenue Code of 1986), and (5) any recovery zone economic development bond (as defined in section 1400U–2 of the Internal Revenue Code of 1986). SEC. 1602. GRANTS TO STATES FOR LOW-INCOME HOUSING PROJECTS IN LIEU OF LOW-INCOME HOUSING CREDIT ALLOCATIONS FOR 2009. (a) In General.— The Secretary of the Treasury shall make a grant to the housing credit agency of each State in an amount equal to such State’s low-income housing grant election amount. (b) Low-Income Housing Grant Election Amount.— For purposes of this section, the term “low-income housing grant election amount” means, with respect to any State, such amount as the State may elect which does not exceed 85 percent of the product of— (1) the sum of— (A) 100 percent of the State housing credit ceiling for 2009 which is attributable to amounts described in clauses (i) and (iii) of section 42(h)(3)(C) of the Internal Revenue Code of 1986, and (B) 40 percent of the State housing credit ceiling for 2009 which is attributable to amounts described in clauses (ii) and (iv) of such section, multiplied by (2) 10. (c) Subawards for Low-Income Buildings.— (1) In general.— A State housing credit agency receiving a grant under this section shall use such grant to make subawards to finance the construction or acquisition and rehabilitation of qualified low-income buildings. A subaward under this section may be made to finance a qualified low-income building with or without an allocation under section 42 of the Internal Revenue Code of 1986, except that a State housing credit agency may make subawards to finance qualified low-income buildings without an allocation only if it makes a determination that such use will increase the total funds available to the State to build and rehabilitate affordable housing. Procedures. In complying with such determination requirement, a State housing credit agency shall establish a process in which applicants that are allocated credits are required to demonstrate good faith efforts to obtain investment commitments for such credits before the agency makes such subawards. (2) Subawards subject to same requirements as low-income housing credit allocations.— Any such subaward with respect to any qualified low-income building shall be made in the same manner and shall be subject to the same limitations (including rent, income, and use restrictions on such building) as an allocation of housing credit dollar amount allocated by such State housing credit agency under section 42 of the Internal Revenue Code of 1986, except that such subawards shall not be limited by, or otherwise affect (except as provided in subsection (h)(3)(J) of such section), the State housing credit ceiling applicable to such agency. (3) Compliance and asset management.— The State housing credit agency shall perform asset management functions to ensure compliance with section 42 of the Internal Revenue Code of 1986 and the long-term viability of buildings funded by any subaward under this section. The State housing credit agency may collect reasonable fees from a subaward recipient to cover expenses associated with the performance of its duties under this paragraph. The State housing credit agency may retain an agent or other private contractor to satisfy the requirements of this paragraph. (4) Recapture.— The State housing credit agency shall impose conditions or restrictions, including a requirement providing for recapture, on any subaward under this section so as to assure that the building with respect to which such subaward is made remains a qualified low-income building during the compliance period. Any such recapture shall be payable to the Secretary of the Treasury for deposit in the general fund of the Treasury and may be enforced by means of liens or such other methods as the Secretary of the Treasury determines appropriate. (d) Return of Unused Grant Funds.— Any grant funds not used to make subawards under this section before January 1, 2011, shall be returned to the Secretary of the Treasury on such date. Any subawards returned to the State housing credit agency on or after such date shall be promptly returned to the Secretary of the Treasury. Any amounts returned to the Secretary of the Treasury under this subsection shall be deposited in the general fund of the Treasury. (e) Definitions.— Any term used in this section which is also used in section 42 of the Internal Revenue Code of 1986 shall have the same meaning for purposes of this section as when used in such section 42. Any reference in this section to the Secretary of the Treasury shall be treated as including the Secretary’s delegate. (f) Appropriations.— There is hereby appropriated to the Secretary of the Treasury such sums as may be necessary to carry out this section. SEC. 1603. GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF TAX CREDITS. (a) In General.— Upon application, the Secretary of the Treasury shall, subject to the requirements of this section, provide a grant to each person who places in service specified energy property to reimburse such person for a portion of the expense of such property as provided in subsection (b). No grant shall be made under this section with respect to any property unless such property— (1) is placed in service during 2009 or 2010, or (2) is placed in service after 2010 and before the credit termination date with respect to such property, but only if the construction of such property began during 2009 or 2010. (b) Grant Amount.— (1) In general.— The amount of the grant under subsection (a) with respect to any specified energy property shall be the applicable percentage of the basis of such property. (2) Applicable percentage.— For purposes of paragraph (1), the term “applicable percentage” means— (A) 30 percent in the case of any property described in paragraphs (1) through (4) of subsection (d), and (B) 10 percent in the case of any other property. (3) Dollar limitations.— In the case of property described in paragraph (2), (6), or (7) of subsection (d), the amount of any grant under this section with respect to such property shall not exceed the limitation described in section 48(c)(1)(B), 48(c)(2)(B), or 48(c)(3)(B) of the Internal Revenue Code of 1986, respectively, with respect to such property. (c) Time for Payment of Grant.— The Secretary of the Treasury shall make payment of any grant under subsection (a) during the 60-day period beginning on the later of— (1) the date of the application for such grant, or (2) the date the specified energy property for which the grant is being made is placed in service. (d) Specified Energy Property.— For purposes of this section, the term “specified energy property” means any of the following: (1) Qualified facilities.— Any qualified property (as defined in section 48(a)(5)(D) of the Internal Revenue Code of 1986) which is part of a qualified facility (within the meaning of section 45 of such Code) described in paragraph (1), (2), (3), (4), (6), (7), (9), or (11) of section 45(d) of such Code. (2) Qualified fuel cell property.— Any qualified fuel cell property (as defined in section 48(c)(1) of such Code). (3) Solar property.— Any property described in clause (i) or (ii) of section 48(a)(3)(A) of such Code. (4) Qualified small wind energy property.— Any qualified small wind energy property (as defined in section 48(c)(4) of such Code). (5) Geothermal property.— Any property described in clause (iii) of section 48(a)(3)(A) of such Code. (6) Qualified microturbine property.— Any qualified microturbine property (as defined in section 48(c)(2) of such Code). (7) Combined heat and power system property.— Any combined heat and power system property (as defined in section 48(c)(3) of such Code). (8) Geothermal heat pump property.— Any property described in clause (vii) of section 48(a)(3)(A) of such Code. Such term shall not include any property unless depreciation (or amortization in lieu of depreciation) is allowable with respect to such property. (e) Credit Termination Date.— For purposes of this section, the term “credit termination date” means— (1) in the case of any specified energy property which is part of a facility described in paragraph (1) of section 45(d) of the Internal Revenue Code of 1986, January 1, 2013, (2) in the case of any specified energy property which is part of a facility described in paragraph (2), (3), (4), (6), (7), (9), or (11) of section 45(d) of such Code, January 1, 2014, and (3) in the case of any specified energy property described in section 48 of such Code, January 1, 2017. In the case Applicability. of any property which is described in paragraph (3) and also in another paragraph of this subsection, paragraph (3) shall apply with respect to such property. (f) Application of Certain Rules.— In making grants under this section, the Secretary of the Treasury shall apply rules similar to the rules of section 50 of the Internal Revenue Code of 1986. In applying such rules, if the property is disposed of, or otherwise ceases to be specified energy property, the Secretary of the Treasury shall provide for the recapture of the appropriate percentage of the grant amount in such manner as the Secretary of the Treasury determines appropriate. (g) Exception for Certain Non-Taxpayers.— The Secretary of the Treasury shall not make any grant under this section to— (1) any Federal, State, or local government (or any political subdivision, agency, or instrumentality thereof), (2) any organization described in section 501(c) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code, (3) any entity referred to in paragraph (4) of section 54(j) of such Code, or (4) any partnership or other pass-thru entity any partner (or other holder of an equity or profits interest) of which is described in paragraph (1), (2) or (3). (h) Definitions.— Terms used in this section which are also used in section 45 or 48 of the Internal Revenue Code of 1986 shall have the same meaning for purposes of this section as when used in such section 45 or 48. Any reference in this section to the Secretary of the Treasury shall be treated as including the Secretary’s delegate. (i) Appropriations.— There is hereby appropriated to the Secretary of the Treasury such sums as may be necessary to carry out this section. (j) Termination.— The Deadline. Secretary of the Treasury shall not make any grant to any person under this section unless the application of such person for such grant is received before October 1, 2011. SEC. 1604. INCREASE IN PUBLIC DEBT LIMIT.   Subsection (b) of section 3101 of title 31, United States Code, is amended by striking out the dollar limitation contained in such subsection and inserting “$12,104,000,000,000”. Subtitle H— Prohibition on Collection of Certain Payments Made Under the Continued Dumping and Subsidy Offset Act of 2000 SEC. 1701. PROHIBITION ON COLLECTION OF CERTAIN PAYMENTS MADE UNDER THE CONTINUED DUMPING AND SUBSIDY OFFSET ACT OF 2000. (a) In General.— Notwithstanding any other provision of law, neither the Secretary of Homeland Security nor any other person may— (1) require repayment of, or attempt in any other way to recoup, any payments described in subsection (b); or (2) offset any past, current, or future distributions of antidumping or countervailing duties assessed with respect to imports from countries that are not parties to the North American Free Trade Agreement in an attempt to recoup any payments described in subsection (b). (b) Payments Described.— Payments described in this subsection are payments of antidumping or countervailing duties made pursuant to the Continued Dumping and Subsidy Offset Act of 2000 (section 754 of the Tariff Act of 1930 (19 U.S.C. 1675c; repealed by subtitle F of title VII of the Deficit Reduction Act of 2005 (Public Law 109–171; 120 Stat. 154))) that were— (1) assessed and paid on imports of goods from countries that are parties to the North American Free Trade Agreement; and (2) distributed on or after January 1, 2001, and before January 1, 2006. (c) Payment of Funds Collected or Withheld.— Not Deadline. later than the date that is 60 days after the date of the enactment of this Act, the Secretary of Homeland Security shall— (1) refund any repayments, or any other recoupment, of payments described in subsection (b); and (2) fully distribute any antidumping or countervailing duties that the U.S. Customs and Border Protection is withholding as an offset as described in subsection (a)(2). (d) Limitation.— Nothing in this section shall be construed to prevent the Secretary of Homeland Security, or any other person, from requiring repayment of, or attempting to otherwise recoup, any payments described in subsection (b) as a result of— (1) a finding of false statements or other misconduct by a recipient of such a payment; or (2) the reliquidation of an entry with respect to which such a payment was made. Subtitle I— Trade Adjustment Assistance SEC. 1800. SHORT TITLE.   This subtitle may be cited as the “Trade and Globalization Adjustment Assistance Act of 2009”. PART I— TRADE ADJUSTMENT ASSISTANCE FOR WORKERS Subpart A— Trade Adjustment Assistance for Service Sector Workers SEC. 1801. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE TO SERVICE SECTOR AND PUBLIC AGENCY WORKERS; SHIFTS IN PRODUCTION. (a) Definitions.— Section 247 of the Trade Act of 1974 (19 U.S.C. 2319) is amended— (1) in paragraph (1)— (A) by striking “or appropriate subdivision of a firm”; and (B) by striking “or subdivision”; (2) in paragraph (2), by striking “employment—” and all that follows and inserting “employment, has been totally or partially separated from such employment.”; (3) by inserting after paragraph (2) the following: “(3) Subject to section 222(d)(5), the term ‘firm’ means— “(A) a firm, including an agricultural firm, service sector firm, or public agency; or “(B) an appropriate subdivision thereof.” ; (4) by inserting after paragraph (6) the following: “(7) The term ‘public agency’ means a department or agency of a State or local government or of the Federal Government, or a subdivision thereof.” ; (5) in paragraph (11), by striking “, or in a subdivision of which,”; and (6) by adding at the end the following: “(18) The term ‘service sector firm’ means a firm engaged in the business of supplying services.” . (b) Group Eligibility Requirements.— Section 222 of the Trade Act of 1974 (19 U.S.C. 2272) is amended— (1) in subsection (a)(2)— (A) by amending subparagraph (A)(ii) to read as follows: “(ii) (I) imports of articles or services like or directly competitive with articles produced or services supplied by such firm have increased; “(II) imports of articles like or directly competitive with articles— “(aa) into which one or more component parts produced by such firm are directly incorporated, or “(bb) which are produced directly using services supplied by such firm, have increased; or “(III) imports of articles directly incorporating one or more component parts produced outside the United States that are like or directly competitive with imports of articles incorporating one or more component parts produced by such firm have increased; and” ; and (B) by amending subparagraph (B) to read as follows: “(B) (i) (I) there has been a shift by such workers’ firm to a foreign country in the production of articles or the supply of services like or directly competitive with articles which are produced or services which are supplied by such firm; or “(II) such workers’ firm has acquired from a foreign country articles or services that are like or directly competitive with articles which are produced or services which are supplied by such firm; and “(ii) the shift described in clause (i)(I) or the acquisition of articles or services described in clause (i)(II) contributed importantly to such workers’ separation or threat of separation.” ; (2) by redesignating subsections (b) and (c) as subsections (c) and (d), respectively; and (3) by inserting after subsection (a) the following: “(b) Adversely Affected Workers in Public Agencies.— A group Certification. of workers in a public agency shall be certified by the Secretary as eligible to apply for adjustment assistance under this chapter pursuant to a petition filed under section 221 if the Secretary determines that— “(1) a significant number or proportion of the workers in the public agency have become totally or partially separated, or are threatened to become totally or partially separated; “(2) the public agency has acquired from a foreign country services like or directly competitive with services which are supplied by such agency; and “(3) the acquisition of services described in paragraph (2) contributed importantly to such workers’ separation or threat of separation.” . (c) Basis for Secretary’s Determinations.— Section 222 of the Trade Act of 1974 (19 U.S.C. 2272), as amended, is further amended by adding at the end the following: “(e) Basis for Secretary’s Determinations.— “(1) In general.— The Secretary shall, in determining whether to certify a group of workers under section 223, obtain from the workers’ firm, or a customer of the workers’ firm, information the Secretary determines to be necessary to make the certification, through questionnaires and in such other manner as the Secretary determines appropriate. “(2) Additional information.— The Secretary may seek additional information to determine whether to certify a group of workers under subsection (a), (b), or (c)— “(A) by contacting— “(i) officials or employees of the workers’ firm; “(ii) officials of customers of the workers’ firm; “(iii) officials of certified or recognized unions or other duly authorized representatives of the group of workers; or “(iv) one-stop operators or one-stop partners (as defined in section 101 of the Workforce Investment Act of 1998 (29 U.S.C. 2801)); or “(B) by using other available sources of information. “(3) Verification of information.— “(A) Certification.— The Secretary shall require a firm or customer to certify— “(i) all information obtained under paragraph (1) from the firm or customer (as the case may be) through questionnaires; and “(ii) all other information obtained under paragraph (1) from the firm or customer (as the case may be) on which the Secretary relies in making a determination under section 223, unless the Secretary has a reasonable basis for determining that such information is accurate and complete without being certified. “(B) Use of subpoenas.— The Secretary Deadline. shall require the workers’ firm or a customer of the workers’ firm to provide information requested by the Secretary under paragraph (1) by subpoena pursuant to section 249 if the firm or customer (as the case may be) fails to provide the information within 20 days after the date of the Secretary’s request, unless the firm or customer (as the case may be) demonstrates to the satisfaction of the Secretary that the firm or customer (as the case may be) will provide the information within a reasonable period of time. “(C) Protection of confidential information.— The Secretary may not release information obtained under paragraph (1) that the Secretary considers to be confidential business information unless the firm or customer (as the case may be) submitting the confidential business information had notice, at the time of submission, that the information would be released by the Secretary, or the firm or customer (as the case may be) subsequently consents to the release of the information. Nothing in this subparagraph shall be construed to prohibit the Secretary from providing such confidential business information to a court in camera or to another party under a protective order issued by a court.” . (d) Penalties.— Section 244 of the Trade Act of 1974 (19 U.S.C. 2316) is amended to read as follows: “SEC. 244. PENALTIES.   “Any person who— “(1) makes a false statement of a material fact knowing it to be false, or knowingly fails to disclose a material fact, for the purpose of obtaining or increasing for that person or for any other person any payment authorized to be furnished under this chapter or pursuant to an agreement under section 239, or “(2) makes a false statement of a material fact knowing it to be false, or knowingly fails to disclose a material fact, when providing information to the Secretary during an investigation of a petition under section 221, shall be imprisoned for not more than one year, or fined under title 18, United States Code, or both.” . (e) Conforming Amendments.— (1) Section 221(a) of the Trade Act of 1974 (19 U.S.C. 2271(a)) is amended— (A) in paragraph (1)— (i) in the matter preceding subparagraph (A)— (I) by striking “Secretary” and inserting “Secretary of Labor”; and (II) by striking “or subdivision” and inserting “(as defined in section 247)”; and (ii) in subparagraph (A), by striking “(including workers in an agricultural firm or subdivision of any agricultural firm)”; (B) in paragraph (2)(A), by striking “rapid response assistance” and inserting “rapid response activities”; and (C) in paragraph (3), by inserting “and on the website of the Department of Labor” after “Federal Register”. (2) Section 222 of the Trade Act of 1974 (19 U.S.C. 2272), as amended, is further amended— (A) by striking “(including workers in any agricultural firm or subdivision of an agricultural firm)” each place it appears; (B) in subsection (a)— (i) in paragraph (1), by striking “, or an appropriate subdivision of the firm,”; and (ii) in paragraph (2), by striking “or subdivision” each place it appears; (C) in subsection (c) (as redesignated)— (i) in paragraph (2)— (I) by striking “(or subdivision)” each place it appears; (II) by inserting “or service” after “the article”; and (III) by striking “(c) (3)” and inserting “(d) (3)”; and (ii) in paragraph (3), by striking “(or subdivision)” each place it appears; and (D) in subsection (d) (as redesignated)— (i) by striking “For purposes” and inserting “Definitions.—For purposes”; (ii) in paragraph (2), by striking “, or appropriate subdivision of a firm,” each place it appears; (iii) by amending paragraph (3) to read as follows: “(3) Downstream producer.— “(A) In general.— The term ‘downstream producer’ means a firm that performs additional, value-added production processes or services directly for another firm for articles or services with respect to which a group of workers in such other firm has been certified under subsection (a). “(B) Value-added production processes or services.— For purposes of subparagraph (A), value-added production processes or services include final assembly, finishing, testing, packaging, or maintenance or transportation services.” ; (iv) in paragraph (4)— (I) by striking “(or subdivision)”; and (II) by inserting “, or services, used in the production of articles or in the supply of services, as the case may be,” after “for articles”; and (v) by adding at the end the following: “(5) Reference to firm.— For purposes of subsection (a), the term ‘firm’ does not include a public agency.” . (3) Section 231(a)(2) of the Trade Act of 1974 (19 U.S.C. 2291(a)(2)) is amended— (A) in the matter preceding subparagraph (A), by striking “or subdivision of a firm”; and (B) in subparagraph (C), by striking “or subdivision”. SEC. 1802. SEPARATE BASIS FOR CERTIFICATION.   Section 222 of the Trade Act of 1974 (19 U.S.C. 2272), as amended, is further amended by adding at the end the following: “(f) Firms Identified by the International Trade Commission.— Notwithstanding any other provision of this chapter, a group of workers covered by a petition filed under section 221 shall be certified under subsection (a) as eligible to apply for adjustment assistance under this chapter if— “(1) the workers’ firm is publicly identified by name by the International Trade Commission as a member of a domestic industry in an investigation resulting in— “(A) an affirmative determination of serious injury or threat thereof under section 202(b)(1); “(B) an affirmative determination of market disruption or threat thereof under section 421(b)(1); or “(C) an affirmative final determination of material injury or threat thereof under section 705(b)(1)(A) or 735(b)(1)(A) of the Tariff Act of 1930 (19 U.S.C. 1671d(b)(1)(A) and 1673d(b)(1)(A)); “(2) the petition is filed during the one-year period beginning on the date on which— “(A) a summary of the report submitted to the President by the International Trade Commission under section 202(f)(1) with respect to the affirmative determination described in paragraph (1)(A) is published in the Federal Register under section 202(f)(3); or “(B) notice of an affirmative determination described in subparagraph (B) or (C) of paragraph (1) is published in the Federal Register; and “(3) the workers have become totally or partially separated from the workers’ firm within— “(A) the one-year period described in paragraph (2); or “(B) notwithstanding section 223(b), the one-year period preceding the one-year period described in paragraph (2).” . SEC. 1803. DETERMINATIONS BY SECRETARY OF LABOR.   Section 223 of the Trade Act of 1974 (19 U.S.C. 2273) is amended— (1) in subsection (b), by striking “or appropriate subdivision of the firm before his application” and all that follows and inserting “before the worker’s application under section 231 occurred more than one year before the date of the petition on which such certification was granted.”; (2) in subsection (c), by striking “together with his reasons” and inserting “and on the website of the Department of Labor, together with the Secretary’s reasons”; (3) in subsection (d)— (A) by striking “or subdivision of the firm” and all that follows through “he shall” and inserting “, that total or partial separations from such firm are no longer attributable to the conditions specified in section 222, the Secretary shall”; and (B) by striking “together with his reasons” and inserting “and on the website of the Department of Labor, together with the Secretary’s reasons”; and (4) by adding at the end the following: “(e) Standards for Investigations and Determinations.— “(1) In general.— The Secretary Criteria. shall establish standards, including data requirements, for investigations of petitions filed under section 221 and criteria for making determinations under subsection (a). “(2) Consultations.— Not less Deadline. than 90 days before issuing a final rule with respect to the standards required under paragraph (1), the Secretary shall consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives with respect to such rule.” . SEC. 1804. MONITORING AND REPORTING RELATING TO SERVICE SECTOR. (a) In General.— Section 282 of the Trade Act of 1974 (19 U.S.C. 2393) is amended— (1) in the heading, by striking “system” and inserting “and data collection”; (2) in the first sentence— (A) by striking “The Secretary” and inserting “(a) Monitoring Programs.—The Secretary”; (B) by inserting “and services” after “imports of articles”; (C) by inserting “and domestic supply of services” after “domestic production”; (D) by inserting “or supplying services” after “producing articles”; and (E) by inserting “, or supply of services,” after “changes in production”; and (3) by adding at the end the following: “(b) Collection of Data and Reports on Service Sector.— “(1) Secretary of labor.— Not later System. than 90 days after the date of the enactment of this subsection, the Secretary of Labor shall implement a system to collect data on adversely affected workers employed in the service sector that includes the number of workers by State and industry, and by the cause of the dislocation of each worker, as identified in the certification. “(2) Secretary of commerce.— Not later than 1 year after such date of enactment, the Secretary of Commerce shall, in consultation with the Secretary of Labor, conduct a study and submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report on ways to improve the timeliness and coverage of data on trade in services, including methods to identify increased imports due to the relocation of United States firms to foreign countries, and increased imports due to United States firms acquiring services from firms in foreign countries.” . (b) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by striking the item relating to section 282 and inserting the following: “Sec. 282.  Trade monitoring and data collection.”. (c) Effective Date.— The amendments made by this section shall take effect on the date of the enactment of this Act. Subpart B— Industry Notifications Following Certain Affirmative Determinations SEC. 1811. NOTIFICATIONS FOLLOWING CERTAIN AFFIRMATIVE DETERMINATIONS. (a) In General.— Section 224 of the Trade Act of 1974 (19 U.S.C. 2274) is amended— (1) by amending the heading to read as follows: “SEC. 224. STUDY AND NOTIFICATIONS REGARDING CERTAIN AFFIRMATIVE DETERMINATIONS; INDUSTRY NOTIFICATION OF ASSISTANCE.” ; (2) in subsection (a), by striking “Whenever” and inserting “Study of Domestic Industry.—Whenever”; (3) in subsection (b)— (A) by striking “The report” and inserting “Report by the Secretary.—The report”; and (B) by inserting “and on the website of the Department of Labor” after “Federal Register”; and (4) by adding at the end the following: “(c) Notifications Following Affirmative Global Safeguard Determinations.— Upon making an affirmative determination under section 202(b)(1), the Commission shall promptly notify the Secretary of Labor and the Secretary of Commerce and, in the case of a determination with respect to an agricultural commodity, the Secretary of Agriculture, of the determination. “(d) Notifications Following Affirmative Bilateral or Plurilateral Safeguard Determinations.— “(1) Notifications of determinations of market disruption.— Upon making an affirmative determination under section 421(b)(1), the Commission shall promptly notify the Secretary of Labor and the Secretary of Commerce and, in the case of a determination with respect to an agricultural commodity, the Secretary of Agriculture, of the determination. “(2) Notifications regarding trade agreement safeguards.— Upon making an affirmative determination in a proceeding initiated under an applicable safeguard provision (other than a provision described in paragraph (3)) that is enacted to implement a trade agreement to which the United States is a party, the Commission shall promptly notify the Secretary of Labor and the Secretary of Commerce and, in the case of a determination with respect to an agricultural commodity, the Secretary of Agriculture, of the determination. “(3) Notifications regarding textile and apparel safeguards.— Upon making an affirmative determination in a proceeding initiated under any safeguard provision relating to textile and apparel articles that is enacted to implement a trade agreement to which the United States is a party, the President shall promptly notify the Secretary of Labor and the Secretary of Commerce of the determination. “(e) Notifications Following Certain Affirmative Determinations Under Title Vii of the Tariff Act of 1930.— Upon making an affirmative determination under section 705(b)(1)(A) or 735(b)(1)(A) of the Tariff Act of 1930 (19 U.S.C. 1671d(b)(1)(A) and 1673d(b)(1)(A)), the Commission shall promptly notify the Secretary of Labor and the Secretary of Commerce and, in the case of a determination with respect to an agricultural commodity, the Secretary of Agriculture, of the determination. “(f) Industry Notification of Assistance.— Upon receiving a notification of a determination under subsection (c), (d), or (e) with respect to a domestic industry— “(1) the Secretary of Labor shall— “(A) notify the representatives of the domestic industry affected by the determination, firms publicly identified by name during the course of the proceeding relating to the determination, and any certified or recognized union or, to the extent practicable, other duly authorized representative of workers employed by such representatives of the domestic industry, of— “(i) the allowances, training, employment services, and other benefits available under this chapter; “(ii) the manner in which to file a petition and apply for such benefits; and “(iii) the availability of assistance in filing such petitions; “(B) notify the Governor of each State in which one or more firms in the industry described in subparagraph (A) are located of the Commission’s determination and the identity of the firms; and “(C) upon request, provide any assistance that is necessary to file a petition under section 221; “(2) the Secretary of Commerce shall— “(A) notify the representatives of the domestic industry affected by the determination and any firms publicly identified by name during the course of the proceeding relating to the determination of— “(i) the benefits available under chapter 3; “(ii) the manner in which to file a petition and apply for such benefits; and “(iii) the availability of assistance in filing such petitions; and “(B) upon request, provide any assistance that is necessary to file a petition under section 251; and “(3) in the case of an affirmative determination based upon imports of an agricultural commodity, the Secretary of Agriculture shall— “(A) notify representatives of the domestic industry affected by the determination and any agricultural commodity producers publicly identified by name during the course of the proceeding relating to the determination of— “(i) the benefits available under chapter 6; “(ii) the manner in which to file a petition and apply for such benefits; and “(iii) the availability of assistance in filing such petitions; and “(B) upon request, provide any assistance that is necessary to file a petition under section 292. “(g) Representatives of the Domestic Industry.— For purposes of subsection (f), the term ‘representatives of the domestic industry’ means the persons that petitioned for relief in connection with— “(1) a proceeding under section 202 or 421 of this Act; “(2) a proceeding under section 702(b) or 732(b) of the Tariff Act of 1930 (19 U.S.C. 1671d(b) and 1673d(b)); or “(3) any safeguard investigation described in subsection (d)(2) or (d)(3).” . (b) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by striking the item relating to section 224 and inserting the following: “Sec. 224.  Study and notifications regarding certain affirmative determinations; industry notification of assistance.”. SEC. 1812. NOTIFICATION TO SECRETARY OF COMMERCE.   Section 225 of the Trade Act of 1974 (19 U.S.C. 2275) is amended by adding at the end the following: “(c) Upon issuing a certification under section 223, the Secretary shall notify the Secretary of Commerce of the identity of each firm covered by the certification.” . Subpart C— Program Benefits SEC. 1821. QUALIFYING REQUIREMENTS FOR WORKERS. (a) In General.— Section 231(a)(5)(A)(ii) of the Trade Act of 1974 (19 U.S.C. 2291 (a)(5)(A)(ii)) is amended— (1) by striking subclauses (I) and (II) and inserting the following: “(I) in the case of a worker whose most recent total separation from adversely affected employment that meets the requirements of paragraphs (1) and (2) occurs after the date on which the Secretary issues a certification covering the worker, the last day of the 26th week after such total separation, “(II) in the case of a worker whose most recent total separation from adversely affected employment that meets the requirements of paragraphs (1) and (2) occurs before the date on which the Secretary issues a certification covering the worker, the last day of the 26th week after the date of such certification,” ; (2) in subclause (III)— (A) by striking “later of the dates specified in subclause (I) or (II)” and inserting “date specified in subclause (I) or (II), as the case may be”; and (B) by striking “or” at the end; (3) by redesignating subclause (IV) as subclause (V); and (4) by inserting after subclause (III) the following: “(IV) in the case of a worker who fails to enroll by the date required by subclause (I), (II), or (III), as the case may be, due to the failure to provide the worker with timely information regarding the date specified in such subclause, the last day of a period determined by the Secretary, or” . (b) Waivers of Training Requirements.— Section 231(c) of the Trade Act of 1974 (19 U.S.C. 2291(c)) is amended— (1) in paragraph (1)(B)— (A) by striking “The worker possesses” and inserting the following: “(i) In general.— The worker possesses” ; and (B) by adding at the end the following: “(ii) Marketable skills defined.— For purposes of clause (i), the term ‘marketable skills’ may include the possession of a postgraduate degree from an institution of higher education (as defined in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002)) or an equivalent institution, or the possession of an equivalent postgraduate certification in a specialized field.” ; (2) in paragraph (2)(A), by striking “A waiver” and inserting “Except as provided in paragraph (3)(B), a waiver”; and (3) in paragraph (3)— (A) in subparagraph (A), by striking “Pursuant to an agreement under section 239, the Secretary may authorize a” and inserting “An agreement under section 239 shall authorize a”; (B) by redesignating subparagraph (B) as subparagraph (C); and (C) by inserting after subparagraph (A) the following: “(B) Review of waivers.— An agreement Deadlines. under section 239 shall require a cooperating State to review each waiver issued by the State under subparagraph (A), (B), (D), (E), or (F) of paragraph (1)— “(i) 3 months after the date on which the State issues the waiver; and “(ii) on a monthly basis thereafter.” . (c) Conforming Amendments.— (1) Section 231 of the Trade Act of 1974 (19 U.S.C. 2291), as amended, is further amended— (A) in subsection (a), in the matter preceding paragraph (1), by striking “more than 60 days” and all that follows through “section 221” and inserting “on or after the date of such certification”; and (B) in subsection (b)— (i) by striking paragraph (2); and (ii) in paragraph (1)— (I) by striking “(1)”; (II) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively; (III) by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively; and (IV) by redesignating subclauses (I) and (II) as clauses (i) and (ii), respectively. (2) Section 233 of the Trade Act of 1974 (19 U.S.C. 2293) is amended— (A) by striking subsection (b); and (B) by redesignating subsections (c) through (g) as subsections (b) through (f), respectively. SEC. 1822. WEEKLY AMOUNTS.   Section 232 of the Trade Act of 1974 (19 U.S.C. 2292) is amended— (1) in subsection (a)— (A) by striking “subsections (b) and (c)” and inserting “subsections (b), (c), and (d)”; (B) by striking “total unemployment” the first place it appears and inserting “unemployment”; and (C) in paragraph (2), by inserting before the period the following: “, except that in the case of an adversely affected worker who is participating in training under this chapter, such income shall not include earnings from work for such week that are equal to or less than the most recent weekly benefit amount of the unemployment insurance payable to the worker for a week of total unemployment preceding the worker’s first exhaustion of unemployment insurance (as determined for purposes of section 231(a)(3)(B))”; and (2) by adding at the end the following: “(d) Election of Trade Readjustment Allowance or Unemployment Insurance.— Notwithstanding section 231(a)(3)(B), an adversely affected worker may elect to receive a trade readjustment allowance instead of unemployment insurance during any week with respect to which the worker— “(1) is entitled to receive unemployment insurance as a result of the establishment by the worker of a new benefit year under State law, based in whole or in part upon part-time or short-term employment in which the worker engaged after the worker’s most recent total separation from adversely affected employment; and “(2) is otherwise entitled to a trade readjustment allowance.” . SEC. 1823. LIMITATIONS ON TRADE READJUSTMENT ALLOWANCES; ALLOWANCES FOR EXTENDED TRAINING AND BREAKS IN TRAINING.   Section 233(a) of the Trade Act of 1974 (19 U.S.C. 2293(a)) is amended— (1) in paragraph (2), by inserting “under paragraph (1)” after “trade readjustment allowance”; and (2) in paragraph (3)— (A) in the matter preceding subparagraph (A)— (i) by striking “training approved for him” and inserting “a training program approved for the worker”; (ii) by striking “52 additional weeks” and inserting “78 additional weeks”; and (iii) by striking “52-week” and inserting “91-week”; and (B) in the matter following subparagraph (B), by striking “52-week” and inserting “91-week”. SEC. 1824. SPECIAL RULES FOR CALCULATION OF ELIGIBILITY PERIOD.   Section 233 of the Trade Act of 1974 (19 U.S.C. 2293), as amended, is further amended by adding at the end the following: “(g) Special Rule for Calculating Separation.— Notwithstanding any other provision of this chapter, any period during which a judicial or administrative appeal is pending with respect to the denial by the Secretary of a petition under section 223 shall not be counted for purposes of calculating the period of separation under subsection (a)(2). “(h) Special Rule for Justifiable Cause.— If the Secretary determines that there is justifiable cause, the Secretary may extend the period during which trade readjustment allowances are payable to an adversely affected worker under paragraphs (2) and (3) of subsection (a) (but not the maximum amounts of such allowances that are payable under this section). “(i) Special Rule With Respect to Military Service.— “(1) In general.— Notwithstanding any Waiver authority. other provision of this chapter, the Secretary may waive any requirement of this chapter that the Secretary determines is necessary to ensure that an adversely affected worker who is a member of a reserve component of the Armed Forces and serves a period of duty described in paragraph (2) is eligible to receive a trade readjustment allowance, training, and other benefits under this chapter in the same manner and to the same extent as if the worker had not served the period of duty. “(2) Period of duty described.— An adversely affected worker serves a period of duty described in this paragraph if, before completing training under section 236, the worker— “(A) serves on active duty for a period of more than 30 days under a call or order to active duty of more than 30 days; or “(B) in the case of a member of the Army National Guard of the United States or Air National Guard of the United States, performs full-time National Guard duty under section 502(f) of title 32, United States Code, for 30 consecutive days or more when authorized by the President or the Secretary of Defense for the purpose of responding to a national emergency declared by the President and supported by Federal funds.” . SEC. 1825. APPLICATION OF STATE LAWS AND REGULATIONS ON GOOD CAUSE FOR WAIVER OF TIME LIMITS OR LATE FILING OF CLAIMS.   Section 234 of the Trade Act of 1974 (19 U.S.C. 2294) is amended— (1) by striking “Except where inconsistent” and inserting “(a) In General.—Except where inconsistent”; and (2) by adding at the end the following: “(b) Special Rule With Respect to State Laws and Regulations on Good Cause for Waiver of Time Limits or Late Filing of Claims.— Any law, Applicability. regulation, policy, or practice of a cooperating State that allows for a waiver for good cause of any time limitation relating to the administration of the State unemployment insurance law shall, in the administration of the program under this chapter by the State, apply to any time limitation with respect to an application for a trade readjustment allowance or enrollment in training under this chapter.” . SEC. 1826. EMPLOYMENT AND CASE MANAGEMENT SERVICES. (a) In General.— Section 235 of the Trade Act of 1974 (19 U.S.C. 2295) is amended to read as follows: “SEC. 235. EMPLOYMENT AND CASE MANAGEMENT SERVICES.   “The Secretary shall make available, directly or through agreements with States under section 239, to adversely affected workers and adversely affected incumbent workers covered by a certification under subchapter A of this chapter the following employment and case management services: “(1) Comprehensive and specialized assessment of skill levels and service needs, including through— “(A) diagnostic testing and use of other assessment tools; and “(B) in-depth interviewing and evaluation to identify employment barriers and appropriate employment goals. “(2) Development of an individual employment plan to identify employment goals and objectives, and appropriate training to achieve those goals and objectives. “(3) Information on training available in local and regional areas, information on individual counseling to determine which training is suitable training, and information on how to apply for such training. “(4) Information on how to apply for financial aid, including referring workers to educational opportunity centers described in section 402F of the Higher Education Act of 1965 (20 U.S.C. 1070a–16), where applicable, and notifying workers that the workers may request financial aid administrators at institutions of higher education (as defined in section 102 of such Act (20 U.S.C. 1002)) to use the administrators’ discretion under section 479A of such Act (20 U.S.C. 1087tt) to use current year income data, rather than preceding year income data, for determining the amount of need of the workers for Federal financial assistance under title IV of such Act (20 U.S.C. 1070 et seq.). “(5) Short-term prevocational services, including development of learning skills, communications skills, interviewing skills, punctuality, personal maintenance skills, and professional conduct to prepare individuals for employment or training. “(6) Individual career counseling, including job search and placement counseling, during the period in which the individual is receiving a trade adjustment allowance or training under this chapter, and after receiving such training for purposes of job placement. “(7) Provision of employment statistics information, including the provision of accurate information relating to local, regional, and national labor market areas, including— “(A) job vacancy listings in such labor market areas; “(B) information on jobs skills necessary to obtain jobs identified in job vacancy listings described in subparagraph (A); “(C) information relating to local occupations that are in demand and earnings potential of such occupations; and “(D) skills requirements for local occupations described in subparagraph (C). “(8) Information relating to the availability of supportive services, including services relating to child care, transportation, dependent care, housing assistance, and need-related payments that are necessary to enable an individual to participate in training.” . (b) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by striking the item relating to section 235 and inserting the following: “235. Employment and case management services.”. SEC. 1827. ADMINISTRATIVE EXPENSES AND EMPLOYMENT AND CASE MANAGEMENT SERVICES. (a) In General.— Part II of subchapter B of chapter 2 of title II of the Trade Act of 1974 (19 U.S.C. 2295 et seq.) is amended by inserting after section 235 the following: “SEC. 235A. FUNDING FOR ADMINISTRATIVE EXPENSES AND EMPLOYMENT AND CASE MANAGEMENT SERVICES. “(a) Funding for Administrative Expenses and Employment and Case Management Services.— “(1) In general.— In addition to any funds made available to a State to carry out section 236 for a fiscal year, the State shall receive for the fiscal year a payment in an amount that is equal to 15 percent of the amount of such funds. “(2) Use of funds.— A State that receives a payment under paragraph (1) shall— “(A) use not more than ⅔ of such payment for the administration of the trade adjustment assistance for workers program under this chapter, including for— “(i) processing waivers of training requirements under section 231; “(ii) collecting, validating, and reporting data required under this chapter; and “(iii) providing reemployment trade adjustment assistance under section 246; and “(B) use not less than ⅓ of such payment for employment and case management services under section 235. “(b) Additional Funding for Employment and Case Management Services.— “(1) In general.— In addition to any funds made available to a State to carry out section 236 and the payment under subsection (a)(1) for a fiscal year, the Secretary shall provide to the State for the fiscal year a payment in the amount of $350,000. “(2) Use of funds.— A State that receives a payment under paragraph (1) shall use such payment for the purpose of providing employment and case management services under section 235. “(3) Voluntary return of funds.— A State that receives a payment under paragraph (1) may decline or otherwise return such payment to the Secretary.” . (b) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by inserting after the item relating to section 235 the following: “Sec. 235A.  Funding for administrative expenses and employment and case management services.”. (c) Effective Date.— The amendments made by this section shall take effect on the date of the enactment of this Act. SEC. 1828. TRAINING FUNDING. (a) In General.— Section 236(a)(2) of the Trade Act of 1974 (19 U.S.C. 2296(a)(2)) is amended to read as follows: “(2) (A) The total amount of payments that may be made under paragraph (1) shall not exceed— “(i) for each of the fiscal years 2009 and 2010, $575,000,000; and “(ii) for the period beginning October 1, 2010, and ending December 31, 2010, $143,750,000. “(B) (i) The Secretary shall, as soon as practicable after the beginning of each fiscal year, make an initial distribution of the funds made available to carry out this section, in accordance with the requirements of subparagraph (C). “(ii) The Secretary shall ensure that not less than 90 percent of the funds made available to carry out this section for a fiscal year are distributed to the States by not later than July 15 of that fiscal year. “(C) (i) In making the initial distribution of funds pursuant to subparagraph (B)(i) for a fiscal year, the Secretary shall hold in reserve 35 percent of the funds made available to carry out this section for that fiscal year for additional distributions during the remainder of the fiscal year. “(ii) Subject to clause (iii), in determining how to apportion the initial distribution of funds pursuant to subparagraph (B)(i) in a fiscal year, the Secretary shall take into account, with respect to each State— “(I) the trend in the number of workers covered by certifications of eligibility under this chapter during the most recent 4 consecutive calendar quarters for which data are available; “(II) the trend in the number of workers participating in training under this section during the most recent 4 consecutive calendar quarters for which data are available; “(III) the number of workers estimated to be participating in training under this section during the fiscal year; “(IV) the amount of funding estimated to be necessary to provide training approved under this section to such workers during the fiscal year; and “(V) such other factors as the Secretary considers appropriate relating to the provision of training under this section. “(iii) In no case may the amount of the initial distribution to a State pursuant to subparagraph (B)(i) in a fiscal year be less than 25 percent of the initial distribution to the State in the preceding fiscal year. “(D) The Secretary shall establish procedures for the distribution of the funds that remain available for the fiscal year after the initial distribution required under subparagraph (B)(i). Such procedures may include the distribution of funds pursuant to requests submitted by States in need of such funds. “(E) If, during a fiscal year, the Secretary estimates that the amount of funds necessary to pay the costs of training approved under this section will exceed the dollar amount limitation specified in subparagraph (A), the Secretary shall decide how the amount of funds made available to carry out this section that have not been distributed at the time of the estimate will be apportioned among the States for the remainder of the fiscal year.” . (b) Determinations Regarding Training.— Section 236(a)(9) of the Trade Act of 1974 (19 U.S.C. 2296(a)(9)) is amended— (1) by striking “The Secretary” and inserting “(A) Subject to subparagraph (B), the Secretary”; and (2) by adding at the end the following: “(B) (i) In determining under paragraph (1)(E) whether a worker is qualified to undertake and complete training, the Secretary may approve training for a period longer than the worker’s period of eligibility for trade readjustment allowances under part I if the worker demonstrates a financial ability to complete the training after the expiration of the worker’s period of eligibility for such trade readjustment allowances. “(ii) In determining the reasonable cost of training under paragraph (1)(F) with respect to a worker, the Secretary may consider whether other public or private funds are reasonably available to the worker, except that the Secretary may not require a worker to obtain such funds as a condition of approval of training under paragraph (1).” . (c) Regulations.— Section 236 of the Trade Act of 1974 (19 U.S.C. 2296) is amended by adding at the end the following: “(g) Regulations With Respect to Apportionment of Training Funds to States.— “(1) In general.— Not later than 1 year after the date of the enactment of this subsection, the Secretary shall issue such regulations as may be necessary to carry out the provisions of subsection (a)(2). “(2) Consultations.— The Secretary shall consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives not less than 90 days before issuing any regulation pursuant to paragraph (1).” . (d) Effective Date.— This section and the amendments made by this section shall take effect upon the expiration of the 90-day period beginning on the date of the enactment of this Act, except that— (1) subparagraph (A) of section 236(a)(2) of the Trade Act of 1974, as amended by subsection (a) of this section, shall take effect on the date of the enactment of this Act; and (2) subparagraphs (B), (C), and (D) of such section 236(a)(2) shall take effect on October 1, 2009. SEC. 1829. PREREQUISITE EDUCATION; APPROVED TRAINING PROGRAMS. (a) In General.— Section 236(a)(5) of the Trade Act of 1974 (19 U.S.C. 2296(a)(5)) is amended— (1) in subparagraph (A)— (A) by striking “and” at the end of clause (i); (B) by adding “and” at the end of clause (ii); and (C) by inserting after clause (ii) the following: “(iii) apprenticeship programs registered under the Act of August 16, 1937 (commonly known as the ‘National Apprenticeship Act’; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.),” ; (2) by redesignating subparagraphs (E) and (F) as subparagraphs (F) and (G), respectively; (3) by inserting after subparagraph (D) the following: “(E) any program of prerequisite education or coursework required to enroll in training that may be approved under this section,” ; (4) in subparagraph (F)(ii), as redesignated by paragraph (2), by striking “and” at the end; (5) in subparagraph (G), as redesignated by paragraph (2), by striking the period at the end and inserting “, and”; and (6) by adding at the end the following: “(H) any training program or coursework at an accredited institution of higher education (described in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002)), including a training program or coursework for the purpose of— “(i) obtaining a degree or certification; or “(ii) completing a degree or certification that the worker had previously begun at an accredited institution of higher education. The Secretary may not limit approval of a training program under paragraph (1) to a program provided pursuant to title I of the Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.).” . (b) Conforming Amendments.— Section 233 of the Trade Act of 1974 (19 U.S.C. 2293) is amended— (1) in subsection (a)(2), by inserting “prerequisite education or” after “requires a program of”; and (2) in subsection (f) (as redesignated by section 1821(c) of this subtitle), by inserting “prerequisite education or” after “includes a program of”. (c) Technical Corrections.— Section 236 of the Trade Act of 1974 (19 U.S.C. 2296) is amended— (1) in subsection (a)— (A) in paragraph (1), in the flush text, by striking “his behalf” and inserting “the worker’s behalf”; and (B) in paragraph (3), by striking “this paragraph (1)” and inserting “paragraph (1)”; and (2) in subsection (b)(2), by striking “, and” and inserting a period. SEC. 1830. PRE-LAYOFF AND PART-TIME TRAINING. (a) Pre-Layoff Training.— (1) In general.— Section 236(a) of the Trade Act of 1974 (19 U.S.C. 2296(a)) is amended— (A) in paragraph (1), by inserting after “determines” the following: “, with respect to an adversely affected worker or an adversely affected incumbent worker,”; (B) in paragraph (4)— (i) in subparagraphs (A) and (B), by inserting “or an adversely affected incumbent worker” after “an adversely affected worker” each place it appears; and (ii) in subparagraph (C), by inserting “or adversely affected incumbent worker” after “adversely affected worker” each place it appears; (C) in paragraph (5), in the matter preceding subparagraph (A), by striking “The training programs” and inserting “Except as provided in paragraph (10), the training programs”; (D) in paragraph (6)(B), by inserting “or adversely affected incumbent worker” after “adversely affected worker”; (E) in paragraph (7)(B), by inserting “or adversely affected incumbent worker” after “adversely affected worker”; and (F) by inserting after paragraph (9) the following: “(10) In the case of an adversely affected incumbent worker, the Secretary may not approve— “(A) on-the-job training under paragraph (5)(A)(i); or “(B) customized training under paragraph (5)(A)(ii), unless such training is for a position other than the worker’s adversely affected employment. “(11) If the Secretary determines that an adversely affected incumbent worker for whom the Secretary approved training under this section is no longer threatened with a total or partial separation, the Secretary shall terminate the approval of such training.” . (2) Definitions.— Section 247 of the Trade Act of 1974 (19 U.S.C. 2319), as amended, is further amended by adding at the end the following: “(19) The term ‘adversely affected incumbent worker’ means a worker who— “(A) is a member of a group of workers who have been certified as eligible to apply for adjustment assistance under subchapter A; “(B) has not been totally or partially separated from adversely affected employment; and “(C) the Secretary determines, on an individual basis, is threatened with total or partial separation.” . (b) Part-Time Training.— Section 236 of the Trade Act of 1974 (19 U.S.C. 2296), as amended, is further amended by adding at the end the following: “(h) Part-Time Training.— “(1) In general.— The Secretary may approve full-time or part-time training for a worker under subsection (a). “(2) Limitation.— Notwithstanding paragraph (1), a worker participating in part-time training approved under subsection (a) may not receive a trade readjustment allowance under section 231.” . SEC. 1831. ON-THE-JOB TRAINING. (a) In General.— Section 236(c) of the Trade Act of 1974 (19 U.S.C. 2296(c)) is amended— (1) by redesignating paragraphs (1) through (10) as subparagraphs (A) through (J) and moving such subparagraphs 2 ems to the right; (2) by striking “(c) The Secretary shall” and all that follows through “such costs,” and inserting the following: “(c) On-the-Job Training Requirements.— “(1) In general.— The Secretary may approve on-the-job training for any adversely affected worker if— “(A) the worker meets the requirements for training to be approved under subsection (a)(1); “(B) the Secretary determines that on-the-job training— “(i) can reasonably be expected to lead to suitable employment with the employer offering the on-the-job training; “(ii) is compatible with the skills of the worker; “(iii) includes a curriculum through which the worker will gain the knowledge or skills to become proficient in the job for which the worker is being trained; and “(iv) can be measured by benchmarks that indicate that the worker is gaining such knowledge or skills; and “(C) the State determines that the on-the-job training program meets the requirements of clauses (iii) and (iv) of subparagraph (B). “(2) Monthly payments.— The Secretary shall pay the costs of on-the-job training approved under paragraph (1) in monthly installments. “(3) Contracts for on-the-job training.— “(A) In general.— The Secretary shall ensure, in entering into a contract with an employer to provide on-the-job training to a worker under this subsection, that the skill requirements of the job for which the worker is being trained, the academic and occupational skill level of the worker, and the work experience of the worker are taken into consideration. “(B) Term of contract.— Training under any such contract shall be limited to the period of time required for the worker receiving on-the-job training to become proficient in the job for which the worker is being trained, but may not exceed 104 weeks in any case. “(4) Exclusion of certain employers.— The Secretary shall not enter into a contract for on-the-job training with an employer that exhibits a pattern of failing to provide workers receiving on-the-job training from the employer with— “(A) continued, long-term employment as regular employees; and “(B) wages, benefits, and working conditions that are equivalent to the wages, benefits, and working conditions provided to regular employees who have worked a similar period of time and are doing the same type of work as workers receiving on-the-job training from the employer. “(5) Labor standards.— The Secretary may pay the costs of on-the-job training,” ; and (3) in paragraph (5), as redesignated— (A) in subparagraph (I), as redesignated by paragraph (1) of this section, by striking “paragraphs (1), (2), (3), (4), (5), and (6)” and inserting “subparagraphs (A), (B), (C), (D), (E), and (F)”; and (B) in subparagraph (J), as redesignated by paragraph (1) of this section, by striking “paragraph (8)” and inserting “subparagraph (H)”. (b) Repeal of Preference for Training on the Job.— Section 236(a)(1) of the Trade Act of 1974 (19 U.S.C. 2296(a)(1)) is amended by striking the last sentence. SEC. 1832. ELIGIBILITY FOR UNEMPLOYMENT INSURANCE AND PROGRAM BENEFITS WHILE IN TRAINING.   Section 236(d) of the Trade Act of 1974 (19 U.S.C. 2296(d)) is amended to read as follows: “(d) Eligibility.— An adversely affected worker may not be determined to be ineligible or disqualified for unemployment insurance or program benefits under this subchapter— “(1) because the worker— “(A) is enrolled in training approved under subsection (a); “(B) left work— “(i) that was not suitable employment in order to enroll in such training; or “(ii) that the worker engaged in on a temporary basis during a break in such training or a delay in the commencement of such training; or “(C) left on-the-job training not later than 30 days after commencing such training because the training did not meet the requirements of subsection (c)(1)(B); or “(2) because of the application to any such week in training of the provisions of State law or Federal unemployment insurance law relating to availability for work, active search for work, or refusal to accept work.” . SEC. 1833. JOB SEARCH AND RELOCATION ALLOWANCES. (a) Job Search Allowances.— Section 237 of the Trade Act of 1974 (19 U.S.C. 2297) is amended— (1) in subsection (a)(2)(C)(ii), by striking “, unless the worker received a waiver under section 231(c)”; and (2) in subsection (b)— (A) in paragraph (1), by striking “90 percent of the cost of” and inserting “all”; and (B) in paragraph (2), by striking “$1,250” and inserting “$1,500”. (b) Relocation Allowances.— Section 238 of the Trade Act of 1974 (19 U.S.C. 2298) is amended— (1) in subsection (a)(2)(E)(ii), by striking “, unless the worker received a waiver under section 231(c)”; and (2) in subsection (b)— (A) in paragraph (1), by striking “90 percent of the” and inserting “all”; and (B) in paragraph (2), by striking “$1,250” and inserting “$1,500”. Subpart D— Reemployment Trade Adjustment Assistance Program SEC. 1841. REEMPLOYMENT TRADE ADJUSTMENT ASSISTANCE PROGRAM. (a) In General.— Section 246 of the Trade Act of 1974 (19 U.S.C. 2318) is amended— (1) by amending the heading to read as follows: “SEC. 246. REEMPLOYMENT TRADE ADJUSTMENT ASSISTANCE PROGRAM.” ; (2) in subsection (a)— (A) in paragraph (1)— (i) by striking “Not later than” and all that follows through “2002, the Secretary” and inserting “The Secretary”; and (ii) by striking “an alternative trade adjustment assistance program for older workers” and inserting “a reemployment trade adjustment assistance program”; (B) in paragraph (2)— (i) in subparagraph (A)— (I) in the matter preceding clause (i), by striking “for a period not to exceed 2 years” and inserting “for the eligibility period under subparagraph (A) or (B) of paragraph (4) (as the case may be)”; and (II) by striking clauses (i) and (ii) and inserting the following: “(i) the wages received by the worker at the time of separation; and “(ii) the wages received by the worker from reemployment.” ; (ii) in subparagraph (B)— (I) by striking “for a period not to exceed 2 years” and inserting “for the eligibility period under subparagraph (A) or (B) of paragraph (4) (as the case may be)”; and (II) by striking “, as added by section 201 of the Trade Act of 2002”; and (iii) by adding at the end the following: “(C) Training and other services.— A worker described in paragraph (3)(B) participating in the program established under paragraph (1) is eligible to receive training approved under section 236 and employment and case management services under section 235.” ; and (C) by striking paragraphs (3) through (5) and inserting the following: “(3) Eligibility.— “(A) In general.— A group of workers certified under subchapter A as eligible for adjustment assistance under subchapter A is eligible for benefits described in paragraph (2) under the program established under paragraph (1). “(B) Individual eligibility.— A worker in a group of workers described in subparagraph (A) may elect to receive benefits described in paragraph (2) under the program established under paragraph (1) if the worker— “(i) is at least 50 years of age; “(ii) earns not more than $55,000 each year in wages from reemployment; “(iii) (I) is employed on a full-time basis as defined by the law of the State in which the worker is employed and is not enrolled in a training program approved under section 236; or “(II) is employed at least 20 hours per week and is enrolled in a training program approved under section 236; and “(iv) is not employed at the firm from which the worker was separated. “(4) Eligibility period for payments.— “(A) Worker who has not received trade readjustment allowance.— In the Effective date. case of a worker described in paragraph (3)(B) who has not received a trade readjustment allowance under part I of subchapter B pursuant to the certification described in paragraph (3)(A), the worker may receive benefits described in paragraph (2) for a period not to exceed 2 years beginning on the earlier of— “(i) the date on which the worker exhausts all rights to unemployment insurance based on the separation of the worker from the adversely affected employment that is the basis of the certification; or “(ii) the date on which the worker obtains reemployment described in paragraph (3)(B). “(B) Worker who has received trade readjustment allowance.— In the case of a worker described in paragraph (3)(B) who has received a trade readjustment allowance under part I of subchapter B pursuant to the certification described in paragraph (3)(A), the worker may receive benefits described in paragraph (2) for a period of 104 weeks beginning on the date on which the worker obtains reemployment described in paragraph (3)(B), reduced by the total number of weeks for which the worker received such trade readjustment allowance. “(5) Total amount of payments.— “(A) In general.— The payments described in paragraph (2)(A) made to a worker may not exceed— “(i) $12,000 per worker during the eligibility period under paragraph (4)(A); or “(ii) the amount described in subparagraph (B) per worker during the eligibility period under paragraph (4)(B). “(B) Amount described.— The amount described in this subparagraph is the amount equal to the product of— “(i) $12,000, and “(ii) the ratio of— “(I) the total number of weeks in the eligibility period under paragraph (4)(B) with respect to the worker, to “(II) 104 weeks. “(6) Calculation of amount of payments for certain workers.— “(A) In general.— In the Applicability. case of a worker described in paragraph (3)(B)(iii)(II), paragraph (2)(A) shall be applied by substituting the percentage described in subparagraph (B) for ‘50 percent’. “(B) Percentage described.— The percentage described in this subparagraph is the percentage— “(i) equal to ½ of the ratio of— “(I) the number of weekly hours of employment of the worker referred to in paragraph (3)(B)(iii)(II), to “(II) the number of weekly hours of employment of the worker at the time of separation, but “(ii) in no case more than 50 percent. “(7) Limitation on other benefits.— A worker described in paragraph (3)(B) may not receive a trade readjustment allowance under part I of subchapter B pursuant to the certification described in paragraph (3)(A) during any week for which the worker receives a payment described in paragraph (2)(A).” ; and (3) in subsection (b)(2), by striking “subsection (a)(3)(B)” and inserting “subsection (a)(3)”. (b) Extension of Program.— Section 246(b)(1) of the Trade Act of 1974 (19 U.S.C. 2318(b)(1)) is amended by striking “the date that is 5 years” and all that follows through the end period and inserting “December 31, 2010.”. (c) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by striking the item relating to section 246 and inserting the following: “Sec. 246.  Reemployment trade adjustment assistance program.”. Subpart E— Other Matters SEC. 1851. OFFICE OF TRADE ADJUSTMENT ASSISTANCE. (a) In General.— Subchapter C of chapter 2 of title II of the Trade Act of 1974 (19 U.S.C. 2311 et seq.) is amended by adding at the end the following: “SEC. 249A. OFFICE OF TRADE ADJUSTMENT ASSISTANCE. “(a) Establishment.— There is established in the Department of Labor an office to be known as the Office of Trade Adjustment Assistance (in this section referred to as the ‘Office’). “(b) Head of Office.— The head of the Office shall be an administrator, who shall report directly to the Deputy Assistant Secretary for Employment and Training. “(c) Principal Functions.— The principal functions of the administrator of the Office shall be— “(1) to oversee and implement the administration of trade adjustment assistance program under this chapter; and “(2) to carry out functions delegated to the Secretary of Labor under this chapter, including— “(A) making determinations under section 223; “(B) providing information under section 225 about trade adjustment assistance to workers and assisting such workers to prepare petitions or applications for program benefits; “(C) providing assistance to employers of groups of workers that have filed petitions under section 221 in submitting information required by the Secretary relating to the petitions; “(D) ensuring workers covered by a certification of eligibility under subchapter A receive the employment and case management services described in section 235; “(E) ensuring that States fully comply with agreements entered into under section 239; “(F) advocating for workers applying for benefits available under this chapter; “(G) establishing and overseeing a hotline that workers, employers, and other entities may call to obtain information regarding eligibility criteria, procedural requirements, and benefits available under this chapter; and “(H) carrying out such other duties with respect to this chapter as the Secretary specifies for purposes of this section. “(d) Administration.— “(1) Designation.— The administrator shall designate an employee of the Department of Labor with appropriate experience and expertise to carry out the duties described in paragraph (2). “(2) Duties.— The employee designated under paragraph (1) shall— “(A) receive complaints and requests for assistance related to the trade adjustment assistance program under this chapter; “(B) resolve such complaints and requests for assistance, in coordination with other employees of the Office; “(C) compile basic information concerning such complaints and requests for assistance; and “(D) carry out such other duties with respect to this chapter as the Secretary specifies for purposes of this section.” . (b) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by inserting after the item relating to section 249 the following: “Sec. 249A.  Office of Trade Adjustment Assistance.”. SEC. 1852. ACCOUNTABILITY OF STATE AGENCIES; COLLECTION AND PUBLICATION OF PROGRAM DATA; AGREEMENTS WITH STATES. (a) In General.— Section 239(a) of the Trade Act of 1974 (19 U.S.C. 2311(a)) is amended— (1) by amending clause (2) to read as follows: “(2) in accordance with subsection (f), shall make available to adversely affected workers and adversely affected incumbent workers covered by a certification under subchapter A the employment and case management services described in section 235,”; and (2) by striking “will” each place it appears and inserting “shall”. (b) Form and Manner of Data.— Section 239 of the Trade Act of 1974 (19 U.S.C. 2311) is amended— (1) by redesignating subsections (c) through (g) as subsections (d) through (h), respectively; and (2) by inserting after subsection (b) the following: “(c) Form and Manner of Data.— Each agreement under this subchapter shall— “(1) provide the Secretary with the authority to collect any data the Secretary determines necessary to meet the requirements of this chapter; and “(2) specify the form and manner in which any such data requested by the Secretary shall be reported.” . (c) State Activities.— Section 239(g) of the Trade Act of 1974 (as redesignated) is amended— (1) in paragraph (3), by striking “and” at the end; (2) by amending paragraph (4) to read as follows: “(4) perform outreach to, intake of, and orientation for adversely affected workers and adversely affected incumbent workers covered by a certification under subchapter A with respect to assistance and benefits available under this chapter, and” ; and (3) by adding at the end the following: “(5) make employment and case management services described in section 235 available to adversely affected workers and adversely affected incumbent workers covered by a certification under subchapter A and, if funds provided to carry out this chapter are insufficient to make such services available, make arrangements to make such services available through other Federal programs.” . (d) Reporting Requirement.— Section 239(h) of the Trade Act of 1974 (as redesignated) is amended by striking “1998.” and inserting “1998 (29 U.S.C. 2822(b)) and a description of the State’s rapid response activities under section 221(a)(2)(A).”. (e) Control Measures.— Section 239 of the Trade Act of 1974 (19 U.S.C. 2311), as amended, is further amended by adding at the end the following: “(i) Control Measures.— “(1) In general.— The Secretary Requirements. shall require each cooperating State and cooperating State agency to implement effective control measures and to effectively oversee the operation and administration of the trade adjustment assistance program under this chapter, including by means of monitoring the operation of control measures to improve the accuracy and timeliness of the data being collected and reported. “(2) Definition.— For purposes of paragraph (1), the term ‘control measures’ means measures that— “(A) are internal to a system used by a State to collect data; and “(B) are designed to ensure the accuracy and verifiability of such data. “(j) Data Reporting.— “(1) In general.— Any agreement entered into under this section shall require the cooperating State or cooperating State agency to report to the Secretary on a quarterly basis comprehensive performance accountability data, to consist of— “(A) the core indicators of performance described in paragraph (2)(A); “(B) the additional indicators of performance described in paragraph (2)(B), if any; and “(C) a description of efforts made to improve outcomes for workers under the trade adjustment assistance program. “(2) Core indicators described.— “(A) In general.— The core indicators of performance described in this paragraph are— “(i) the percentage of workers receiving benefits under this chapter who are employed during the second calendar quarter following the calendar quarter in which the workers cease receiving such benefits; “(ii) the percentage of such workers who are employed in each of the third and fourth calendar quarters following the calendar quarter in which the workers cease receiving such benefits; and “(iii) the earnings of such workers in each of the third and fourth calendar quarters following the calendar quarter in which the workers cease receiving such benefits. “(B) Additional indicators.— The Secretary and a cooperating State or cooperating State agency may agree upon additional indicators of performance for the trade adjustment assistance program under this chapter, as appropriate. “(3) Standards with respect to reliability of data.— In preparing Procedures. the quarterly report required by paragraph (1), each cooperating State or cooperating State agency shall establish procedures that are consistent with guidelines to be issued by the Secretary to ensure that the data reported are valid and reliable.” . SEC. 1853. VERIFICATION OF ELIGIBILITY FOR PROGRAM BENEFITS.   Section 239 of the Trade Act of 1974 (19 U.S.C. 2311), as amended, is further amended by adding at the end the following: “(k) Verification of Eligibility for Program Benefits.— “(1) In general.— An agreement under this subchapter shall provide that the State shall periodically redetermine that a worker receiving benefits under this subchapter who is not a citizen or national of the United States remains in a satisfactory immigration status. Once satisfactory immigration status has been initially verified through the immigration status verification system described in section 1137(d) of the Social Security Act (42 U.S.C. 1320b-7(d)) for purposes of establishing a worker’s eligibility for unemployment compensation, the State shall reverify the worker’s immigration status if the documentation provided during initial verification will expire during the period in which that worker is potentially eligible to receive benefits under this subchapter. The State shall conduct such redetermination in a timely manner, utilizing the immigration status verification system described in section 1137(d) of the Social Security Act (42 U.S.C. 1320b-7(d)). “(2) Procedures.— The Secretary shall establish procedures to ensure the uniform application by the States of the requirements of this subsection.” . SEC. 1854. COLLECTION OF DATA AND REPORTS; INFORMATION TO WORKERS. (a) In General.— Subchapter C of chapter 2 of title II of the Trade Act of 1974 (19 U.S.C. 2311 et seq.), as amended, is further amended by adding at the end the following: “SEC. 249B. COLLECTION AND PUBLICATION OF DATA AND REPORTS; INFORMATION TO WORKERS. “(a) In General.— Not later System. than 180 days after the date of the enactment of this section, the Secretary shall implement a system to collect and report the data described in subsection (b), as well as any other information that the Secretary considers appropriate to effectively carry out this chapter. “(b) Data to Be Included.— The system required under subsection (a) shall include collection of and reporting on the following data for each fiscal year: “(1) Data on petitions filed, certified, and denied.— “(A) The number of petitions filed, certified, and denied under this chapter. “(B) The number of workers covered by petitions filed, certified, and denied. “(C) The number of petitions, classified by— “(i) the basis for certification, including increased imports, shifts in production, and other bases of eligibility; and “(ii) congressional district of the United States. “(D) The average time for processing such petitions. “(2) Data on benefits received.— “(A) The number of workers receiving benefits under this chapter. “(B) The number of workers receiving each type of benefit, including training, trade readjustment allowances, employment and case management services, and relocation and job search allowances, and, to the extent feasible, credits for health insurance costs under section 35 of the Internal Revenue Code of 1986. “(C) The average time during which such workers receive each such type of benefit. “(3) Data on training.— “(A) The number of workers enrolled in training approved under section 236, classified by major types of training, including classroom training, training through distance learning, on-the-job training, and customized training. “(B) The number of workers enrolled in full-time training and part-time training. “(C) The average duration of training. “(D) The number of training waivers granted under section 231(c), classified by type of waiver. “(E) The number of workers who complete training and the duration of such training. “(F) The number of workers who do not complete training. “(4) Data on outcomes.— “(A) A summary of the quarterly reports required under section 239(j). “(B) The sectors in which workers are employed after receiving benefits under this chapter. “(5) Data on rapid response activities.— Whether rapid response activities were provided with respect to each petition filed under section 221. “(c) Classification of Data.— To the extent possible, in collecting and reporting the data described in subsection (b), the Secretary shall classify the data by industry, State, and national totals. “(d) Report.— Not later than December 15 of each year, the Secretary shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report that includes— “(1) a summary of the information collected under this section for the preceding fiscal year; “(2) information on the distribution of funds to each State pursuant to section 236(a)(2); and “(3) any recommendations of the Secretary with respect to changes in eligibility requirements, benefits, or training funding under this chapter based on the data collected under this section. “(e) Availability of Data.— “(1) In general.— The Secretary Web posting. shall make available to the public, by publishing on the website of the Department of Labor and by other means, as appropriate— “(A) the report required under subsection (d); “(B) the data collected under this section, in a searchable format; and “(C) a list of cooperating States and cooperating State agencies that failed to submit the data required by this section to the Secretary in a timely manner. “(2) Updates.— The Secretary Deadline. shall update the data under paragraph (1) on a quarterly basis.” . (b) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by inserting after the item relating to section 249A the following: “Sec. 249B.  Collection and publication of data and reports; information to workers.”. (c) Effective Date.— The amendments 19 USC 2323 note. made by this section shall take effect on the date of the enactment of this Act. SEC. 1855. FRAUD AND RECOVERY OF OVERPAYMENTS.   Section 243(a)(1) of the Trade Act of 1974 (19 U.S.C. 2315(a)(1)) is amended— (1) in the matter preceding subparagraph (A)— (A) by striking “may waive” and inserting “shall waive”; and (B) by striking “, in accordance with guidelines prescribed by the Secretary,”; and (2) in subparagraph (B), by striking “would be contrary to equity and good conscience” and inserting “would cause a financial hardship for the individual (or the individual’s household, if applicable) when taking into consideration the income and resources reasonably available to the individual (or household) and other ordinary living expenses of the individual (or household)”. SEC. 1856. SENSE OF CONGRESS ON APPLICATION OF TRADE ADJUSTMENT ASSISTANCE. (a) In General.— Chapter 5 of title II of the Trade Act of 1974 (19 U.S.C. 2391 et seq.) is amended by adding at the end the following: “SEC. 288. SENSE OF CONGRESS.   “It is the sense of Congress that the Secretaries of Labor, Commerce, and Agriculture should apply the provisions of chapter 2 (relating to adjustment assistance for workers), chapter 3 (relating to adjustment assistance for firms), chapter 4 (relating to adjustment assistance for communities), and chapter 6 (relating to adjustment assistance for farmers), respectively, with the utmost regard for the interests of workers, firms, communities, and farmers petitioning for benefits under such chapters.” . (b) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by inserting after the item relating to section 287 the following: “Sec. 288.  Sense of Congress.”. SEC. 1857. CONSULTATIONS IN PROMULGATION OF REGULATIONS.   Section 248 of the Trade Act of 1974 (19 U.S.C. 2320) is amended— (1) by striking “The Secretary shall” and inserting the following: “(a) In General.— The Secretary shall” ; and (2) by adding at the end the following: “(b) Consultations.— Not later Deadline. than 90 days before issuing a regulation under subsection (a), the Secretary shall consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives with respect to the regulation.” . SEC. 1858. TECHNICAL CORRECTIONS. (a) Determinations by Secretary of Labor.— Section 223(c) of the Trade Act of 1974 (19 U.S.C. 2273(c)) is amended by striking “his determination” and inserting “a determination”. (b) Qualifying Requirements for Workers.— Section 231(a) of the Trade Act of 1974 (19 U.S.C. 2291(a)) is amended— (1) in paragraph (1)— (A) in the matter preceding subparagraph (A), by striking “his application” and inserting “the worker’s application”; and (B) in subparagraph (A), by striking “he is covered” and inserting “the worker is covered”; (2) in paragraph (2)— (A) in subparagraph (A), by striking the period and inserting a comma; and (B) in subparagraph (D), by striking “5 U.S.C. 8521(a)(1)” and inserting “section 8521(a)(1) of title 5, United States Code”; and (3) in paragraph (3)— (A) by striking “he” each place it appears and inserting “the worker”; and (B) in subparagraph (C), by striking “him” and inserting “the worker”. (c) Subpoena Power.— Section 249 of the Trade Act of 1974 (19 U.S.C. 2321) is amended— (1) in the section heading, by striking “subpena” and inserting “subpoena”; (2) by striking “subpena” and inserting “subpoena” each place it appears; and (3) in subsection (a), by striking “him” and inserting “the Secretary”. (d) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by striking the item relating to section 249 and inserting the following: “Sec. 249.  Subpoena power.”. PART II— TRADE ADJUSTMENT ASSISTANCE FOR FIRMS SEC. 1861. EXPANSION TO SERVICE SECTOR FIRMS. (a) In General.— Section 251 of the Trade Act of 1974 (19 U.S.C. 2341) is amended by inserting “or service sector firm” after “agricultural firm” each place it appears. (b) Definition of Service Sector Firm.— Section 261 of the Trade Act of 1974 (19 U.S.C. 2351) is amended— (1) by striking “chapter,” and inserting “chapter:”; (2) by striking “the term ‘firm’ ” and inserting the following: “(1) Firm.— The term ‘firm’ ” ; and (3) by adding at the end the following: “(2) Service sector firm.— The term ‘service sector firm’ means a firm engaged in the business of supplying services.” . (c) Conforming Amendments.— (1) Section 251(c)(1)(C) of the Trade Act of 1974 (19 U.S.C. 2341(c)(1)(C)) is amended— (A) by inserting “or services” after “articles” the first place it appears; and (B) by inserting “or services which are supplied” after “produced”. (2) Section 251(c)(2)(B)(ii) of such Act is amended to read as follows: “(ii) Any firm that engages in exploration or drilling for oil or natural gas, or otherwise produces oil or natural gas, shall be considered to be producing articles directly competitive with imports of oil and with imports of natural gas.” . SEC. 1862. MODIFICATION OF REQUIREMENTS FOR CERTIFICATION.   Section 251(c)(1)(B) of the Trade Act of 1974 (19 U.S.C. 2341(c)(1)(B)) is amended to read as follows: “(B) that— “(i) sales or production, or both, of the firm have decreased absolutely, “(ii) sales or production, or both, of an article or service that accounted for not less than 25 percent of the total sales or production of the firm during the 12-month period preceding the most recent 12-month period for which date are available have decreased absolutely, “(iii) sales or production, or both, of the firm during the most recent 12-month period for which data are available have decreased compared to— “(I) the average annual sales or production for the firm during the 24-month period preceding that 12-month period, or “(II) the average annual sales or production for the firm during the 36-month period preceding that 12-month period, and “(iv) sales or production, or both, of an article or service that accounted for not less than 25 percent of the total sales or production of the firm during the most recent 12-month period for which data are available have decreased compared to— “(I) the average annual sales or production for the article or service during the 24-month period preceding that 12-month period, or “(II) the average annual sales or production for the article or service during the 36-month period preceding that 12-month period, and” . SEC. 1863. BASIS FOR DETERMINATIONS.   Section 251 of the Trade Act of 1974 (19 U.S.C. 2341), as amended, is further amended by adding at the end the following: “(e) Basis for Secretary’s Determinations.— For Certification. purposes of subsection (c)(1)(C), the Secretary may determine that there are increased imports of like or directly competitive articles or services, if customers accounting for a significant percentage of the decrease in the sales or production of the firm certify to the Secretary that such customers have increased their imports of such articles or services from a foreign country, either absolutely or relative to their acquisition of such articles or services from suppliers located in the United States. “(f) Notification to Firms of Availability of Benefits.— Upon receiving notice from the Secretary of Labor under section 225 of the identity of a firm that is covered by a certification issued under section 223, the Secretary of Commerce shall notify the firm of the availability of adjustment assistance under this chapter.” . SEC. 1864. OVERSIGHT AND ADMINISTRATION; AUTHORIZATION OF APPROPRIATIONS. (a) In General.— Chapter 3 of title II of the Trade Act of 1974 (19 U.S.C. 2341 et seq.) is amended— (1) by striking sections 254, 255, 256, and 19 USC 2344–2347. 257; (2) by redesignating sections 258, 259, 260, 261, 262, 264, and 265, as 19 USC 2348–2352, 2354, 2355. sections 256, 257, 258, 259, 260, 261, and 262, respectively; and (3) by inserting after section 253 the following: “SEC. 254. OVERSIGHT AND ADMINISTRATION. “(a) In General.— The Secretary Grants. shall, to such extent and in such amounts as are provided in appropriations Acts, provide grants to intermediary organizations (referred to in section 253(b)(1)) throughout the United States pursuant to agreements with such intermediary organizations. Each such agreement shall require the intermediary organization to provide benefits to firms certified under section 251. Deadline. Contracts. The Secretary shall, to the maximum extent practicable, provide by October 1, 2010, that contracts entered into with intermediary organizations be for a 12-month period and that all such contracts have the same beginning date and the same ending date. “(b) Distribution of Funds.— “(1) In general.— Not later Deadline. Methodology. than 90 days after the date of the enactment of this subsection, the Secretary shall develop a methodology for the distribution of funds among the intermediary organizations described in subsection (a). “(2) Prompt initial distribution.— The Criteria. methodology described in paragraph (1) shall ensure the prompt initial distribution of funds and establish additional criteria governing the apportionment and distribution of the remainder of such funds among the intermediary organizations. “(3) Criteria.— The methodology described in paragraph (1) shall include criteria based on the data in the annual report on the trade adjustment assistance for firms program described in section 1866 of the Trade and Globalization Adjustment Assistance Act of 2009. “(c) Requirements for Contracts.— An agreement Guidelines. with an intermediary organization described in subsection (a) shall require the intermediary organization to contract for the supply of services to carry out grants under this chapter in accordance with terms and conditions that are consistent with guidelines established by the Secretary. “(d) Consultations.— “(1) Consultations regarding methodology.— The Secretary shall consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives— “(A) not less than 30 days before finalizing the methodology described in subsection (b); and “(B) not less than 60 days before adopting any changes to such methodology. “(2) Consultations regarding guidelines.— The Secretary shall consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives not less than 60 days before finalizing the guidelines described in subsection (c) or adopting any subsequent changes to such guidelines. “SEC. 255. AUTHORIZATION OF APPROPRIATIONS. “(a) In General.— There are Time period. authorized to be appropriated to the Secretary $50,000,000 for each of the fiscal years 2009 through 2010, and $12,501,000 for the period beginning October 1, 2010, and ending December 31, 2010, to carry out the provisions of this chapter. Amounts appropriated pursuant to this subsection shall— “(1) be Deadline. available to provide adjustment assistance to firms that file a petition for such assistance pursuant to this chapter on or before December 31, 2010; and “(2) otherwise remain available until expended. “(b) Personnel.— Of the amounts appropriated pursuant to this section for each fiscal year, $350,000 shall be available for full-time positions in the Department of Commerce to administer the provisions of this chapter. Establishment. Of such funds the Secretary shall make available to the Economic Development Administration such sums as may be necessary to establish the position of Director of Adjustment Assistance for Firms and such other full-time positions as may be appropriate to administer the provisions of this chapter.” . (b) Residual Authority.— The Secretary of Commerce shall have the authority to modify, terminate, resolve, liquidate, or take any other action with respect to a loan, guarantee, contract, or any other financial assistance that was extended under section 254, 255, 256, or 257 of the Trade Act of 1974 (19 U.S.C. 2344, 2345, 2346, and 2347), as in effect on the day before the effective date set forth in section 1891. (c) Conforming Amendments.— (1) Section 256 of the Trade Act of 1974, as redesignated by subsection (a) of this section, 19 USC 2348. is amended by striking subsection (d). (2) Section 258 of the Trade Act of 1974, as redesignated by subsection (a) of this section, 19 USC 2350. is amended— (A) in the first sentence, by striking “and financial”; and (B) in the last sentence— (i) by striking “sections 253 and 254” and inserting “section 253”; and (ii) by striking “title 28 of the United States Code” and inserting “title 28, United States Code”. (d) Clerical Amendments.— The table of contents of the Trade Act of 1974 is amended by striking the items relating to sections 254, 255, 256, 257, 258, 259, 260, 261, 262, 264, and 265, and inserting the following: “Sec. 254.  Oversight and administration. “Sec. 255.  Authorization of appropriations. “Sec. 256.  Protective provisions. “Sec. 257.  Penalties. “Sec. 258.  Civil actions. “Sec. 259.  Definitions. “Sec. 260.  Regulations. “Sec. 261.  Study by Secretary of Commerce when International Trade Commission begins investigation; action where there is affirmative finding. “Sec. 262.  Assistance to industries.”. (e) Effective Date.— This section and the amendments made by this section shall take effect upon the expiration of the 90-day period beginning on the date of the enactment of this Act, except that subsections (b) and (d) of section 254 of the Trade Act of 1974 (as added by subsection (a) of this section) shall take effect on such date of enactment. SEC. 1865. INCREASED PENALTIES FOR FALSE STATEMENTS.   Section 257 of the Trade Act of 1974, as redesignated by section 1864(a), is 19 USC 2349. amended to read as follows: “SEC. 257. PENALTIES.   “Any person who— “(1) makes a false statement of a material fact knowing it to be false, or knowingly fails to disclose a material fact, or willfully overvalues any security, for the purpose of influencing in any way a determination under this chapter, or for the purpose of obtaining money, property, or anything of value under this chapter, or “(2) makes a false statement of a material fact knowing it to be false, or knowingly fails to disclose a material fact, when providing information to the Secretary during an investigation of a petition under this chapter, shall be imprisoned for not more than 2 years, or fined under title 18, United States Code, or both.” . SEC. 1866. ANNUAL REPORT ON TRADE ADJUSTMENT ASSISTANCE FOR FIRMS. (a) In General.— Not later than December 15, 2009, and each year thereafter, the Secretary of Commerce shall prepare a report containing data regarding the trade adjustment assistance for firms program provided for in chapter 3 of title II of the Trade Act of 1974 (19 U.S.C. 2341 et seq.) for the preceding fiscal year. The data shall include the following: (1) The number of firms that inquired about the program. (2) The number of petitions filed under section 251. (3) The number of petitions certified and denied. (4) The average time for processing petitions. (5) The number of petitions filed and firms certified for each congressional district of the United States. (6) The number of firms that received assistance in preparing their petitions. (7) The number of firms that received assistance developing business recovery plans. (8) The number of business recovery plans approved and denied by the Secretary of Commerce. (9) Sales, employment, and productivity at each firm participating in the program at the time of certification. (10) Sales, employment, and productivity at each firm upon completion of the program and each year for the 2-year period following completion. (11) The financial assistance received by each firm participating in the program. (12) The financial contribution made by each firm participating in the program. (13) The types of technical assistance included in the business recovery plans of firms participating in the program. (14) The number of firms leaving the program before completing the project or projects in their business recovery plans and the reason the project was not completed. (b) Classification of Data.— To the extent possible, in collecting and reporting the data described in subsection (a), the Secretary shall classify the data by intermediary organization, State, and national totals. (c) Report to Congress; Publication.— The Secretary of Commerce shall— (1) submit the report described in subsection (a) to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives; and (2) publish the report in the Federal Register and on the website of the Department of Commerce. (d) Protection of Confidential Information.— The Secretary of Commerce may not release information described in subsection (a) that the Secretary considers to be confidential business information unless the person submitting the confidential business information had notice, at the time of submission, that such information would be released by the Secretary, or such person subsequently consents to the release of the information. Nothing in this subsection shall be construed to prohibit the Secretary from providing such confidential business information to a court in camera or to another party under a protective order issued by a court. SEC. 1867. TECHNICAL CORRECTIONS. (a) In General.— Section 251 of the Trade Act of 1974 (19 U.S.C. 2341), as amended, is further amended— (1) in subsection (a), by striking “he has” and inserting “the Secretary has”; and (2) in subsection (d), by striking “60 days” and inserting “40 days”. (b) Technical Assistance.— Section 253(a)(3) of the Trade Act of 1974 (19 U.S.C. 2343(a)(3)) is amended by striking “of a certified firm” and inserting “to a certified firm”. PART III— TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES SEC. 1871. PURPOSE.   The purpose of the amendments made by this part is to assist communities impacted by trade with economic adjustment through the coordination of Federal, State, and local resources, the creation of community-based development strategies, and the development and provision of programs that meet the training needs of workers covered by certifications under section 223. SEC. 1872. TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES. (a) In General.— Chapter 4 of title II of the Trade Act of 1974 (19 U.S.C. 2371 et seq.) is amended to read as follows: “CHAPTER 4— TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES “Subchapter A— Trade Adjustment Assistance for Communities “SEC. 271. DEFINITIONS.   “In this subchapter: “(1) Agricultural commodity producer.— The term ‘agricultural commodity producer’ has the meaning given that term in section 291. “(2) Community.— The term ‘community’ means a city, county, or other political subdivision of a State or a consortium of political subdivisions of a State. “(3) Community impacted by trade.— The term ‘community impacted by trade’ means a community described in section 273(b)(2). “(4) Eligible community.— The term ‘eligible community’ means a community that the Secretary has determined under section 273(b)(1) is eligible to apply for assistance under this subchapter. “(5) Secretary.— The term ‘Secretary’ means the Secretary of Commerce. “SEC. 272. ESTABLISHMENT OF TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES PROGRAM.   “Not Deadline. later than August 1, 2009, the Secretary shall establish a trade adjustment assistance for communities program at the Department of Commerce under which the Secretary shall— “(1) provide technical assistance under section 274 to communities impacted by trade to facilitate the economic adjustment of those communities; and “(2) award grants to communities impacted by trade to carry out strategic plans developed under section 276. “SEC. 273. ELIGIBILITY; NOTIFICATION. “(a) Petition.— “(1) In general.— A community may submit a petition to the Secretary for an affirmative determination under subsection (b)(1) that the community is eligible to apply for assistance under this subchapter if— “(A) on or after August 1, 2009, one or more certifications described in subsection (b)(3) are made with respect to the community; and “(B) the community submits the petition not later than 180 days after the date of the most recent certification. “(2) Special rule with respect to certain communities.— In the Time period. case of a community with respect to which one or more certifications described in subsection (b)(3) were made on or after January 1, 2007, and before August 1, 2009, the community may submit not later than February 1, 2010, a petition to the Secretary for an affirmative determination under subsection (b)(1). “(b) Affirmative Determination.— “(1) In general.— The Secretary shall make an affirmative determination that a community is eligible to apply for assistance under this subchapter if the Secretary determines that the community is a community impacted by trade. “(2) Community impacted by trade.— A community is a community impacted by trade if— “(A) one or more certifications described in paragraph (3) are made with respect to the community; and “(B) the Secretary determines that the community is significantly affected by the threat to, or the loss of, jobs associated with any such certification. “(3) Certification described.— A certification described in this paragraph is a certification— “(A) by the Secretary of Labor that a group of workers in the community is eligible to apply for assistance under section 223; “(B) by the Secretary of Commerce that a firm located in the community is eligible to apply for adjustment assistance under section 251; or “(C) by the Secretary of Agriculture that a group of agricultural commodity producers in the community is eligible to apply for adjustment assistance under section 293. “(c) Notifications.— “(1) Notification to the governor.— The Governor of a State shall be notified promptly— “(A) by the Secretary of Labor, upon making a determination that a group of workers in the State is eligible for assistance under section 223; “(B) by the Secretary of Commerce, upon making a determination that a firm in the State is eligible for assistance under section 251; and “(C) by the Secretary of Agriculture, upon making a determination that a group of agricultural commodity producers in the State is eligible for assistance under section 293. “(2) Notification to community.— Upon making an affirmative determination under subsection (b)(1) that a community is eligible to apply for assistance under this subchapter, the Secretary shall promptly notify the community and the Governor of the State in which the community is located— “(A) of the affirmative determination; “(B) of the applicable provisions of this subchapter; and “(C) of the means for obtaining assistance under this subchapter and other appropriate economic assistance that may be available to the community. “SEC. 274. TECHNICAL ASSISTANCE. “(a) In General.— The Secretary shall provide comprehensive technical assistance to an eligible community to assist the community to— “(1) diversify and strengthen the economy in the community; “(2) identify significant impediments to economic development that result from the impact of trade on the community; and “(3) develop a strategic plan under section 276 to address economic adjustment and workforce dislocation in the community, including unemployment among agricultural commodity producers. “(b) Coordination of Federal Response.— The Secretary shall coordinate the Federal response to an eligible community by— “(1) identifying Federal, State, and local resources that are available to assist the community in responding to economic distress; and “(2) assisting the community in accessing available Federal assistance and ensuring that such assistance is provided in a targeted, integrated manner. “(c) Interagency Community Assistance Working Group.— “(1) In general.— The Secretary Establishment. shall establish an interagency Community Assistance Working Group, to be chaired by the Secretary or the Secretary’s designee, which shall assist the Secretary with the coordination of the Federal response pursuant to subsection (b). “(2) Membership.— The Working Group shall consist of representatives of any Federal department or agency with responsibility for providing economic adjustment assistance, including the Department of Agriculture, the Department of Defense, the Department of Education, the Department of Labor, the Department of Housing and Urban Development, the Department of Health and Human Services, the Small Business Administration, the Department of the Treasury, and any other Federal, State, or regional public department or agency the Secretary determines to be appropriate. “SEC. 275. GRANTS FOR ELIGIBLE COMMUNITIES. “(a) In General.— The Secretary may award a grant under this section to an eligible community to assist the community in carrying out any project or program that is included in a strategic plan developed by the community under section 276. “(b) Application.— “(1) In general.— An eligible community seeking to receive a grant under this section shall submit a grant application to the Secretary that contains— “(A) the strategic plan developed by the community under section 276(a)(1)(A) and approved by the Secretary under section 276(a)(1)(B); and “(B) a description of the project or program included in the strategic plan with respect to which the community seeks the grant. “(2) Coordination among grant programs.— If an entity in an eligible community is seeking or plans to seek a Community College and Career Training Grant under section 278 or a Sector Partnership Grant under section 279A while the eligible community is seeking a grant under this section, the eligible community shall include in the grant application a description of how the eligible community will integrate any projects or programs carried out using a grant under this section with any projects or programs that may be carried out using such other grants. “(c) Limitation.— An eligible community may not be awarded more than $5,000,000 under this section. “(d) Cost-Sharing.— “(1) Federal share.— The Federal share of a project or program for which a grant is awarded under this section may not exceed 95 percent of the cost of such project or program. “(2) Community share.— The Secretary shall require, as a condition of awarding a grant to an eligible community under this section, that the eligible community contribute not less than an amount equal to 5 percent of the amount of the grant toward the cost of the project or program for which the grant is awarded. “(e) Grants to Small- and Medium-Sized Communities.— The Secretary shall give priority to grant applications submitted under this section by eligible communities that are small- and medium-sized communities. “(f) Annual Report.— Not later than December 15 in each of the calendar years 2009 through 2011, the Secretary shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report— “(1) describing each grant awarded under this section during the preceding fiscal year; and “(2) assessing the impact on the eligible community of each such grant awarded in a fiscal year before the fiscal year referred to in paragraph (1). “SEC. 276. STRATEGIC PLANS. “(a) In General.— “(1) Development.— An eligible community that intends to apply for a grant under section 275 shall— “(A) develop a strategic plan for the community’s economic adjustment to the impact of trade; and “(B) submit the plan to the Secretary for evaluation and approval. “(2) Involvement of private and public entities.— “(A) In general.— To the extent practicable, an eligible community shall consult with entities described in subparagraph (B) in developing a strategic plan under paragraph (1). “(B) Entities described.— Entities described in this subparagraph are public and private entities within the eligible community, including— “(i) local, county, or State government agencies serving the community; “(ii) firms, including small- and medium-sized firms, within the community; “(iii) local workforce investment boards established under section 117 of the Workforce Investment Act of 1998 (29 U.S.C. 2832); “(iv) labor organizations, including State labor federations and labor-management initiatives, representing workers in the community; and “(v) educational institutions, local educational agencies, or other training providers serving the community. “(b) Contents.— The strategic plan shall, at a minimum, contain the following: “(1) A description and analysis of the capacity of the eligible community to achieve economic adjustment to the impact of trade. “(2) An analysis of the economic development challenges and opportunities facing the community as well as the strengths and weaknesses of the economy of the community. “(3) An assessment of the commitment of the eligible community to the strategic plan over the long term and the participation and input of members of the community affected by economic dislocation. “(4) A description of the role and the participation of the entities described in subsection (a)(2)(B) in developing the strategic plan. “(5) A description of the projects to be undertaken by the eligible community under the strategic plan. “(6) A description of how the strategic plan and the projects to be undertaken by the eligible community will facilitate the community’s economic adjustment. “(7) A description of the educational and training programs available to workers in the eligible community and the future employment needs of the community. “(8) An assessment of the cost of implementing the strategic plan, the timing of funding required by the eligible community to implement the strategic plan, and the method of financing to be used to implement the strategic plan. “(9) A strategy for continuing the economic adjustment of the eligible community after the completion of the projects described in paragraph (5). “(c) Grants to Develop Strategic Plans.— “(1) In general.— The Secretary, upon receipt of an application from an eligible community, may award a grant to the community to assist the community in developing a strategic plan under subsection (a)(1). A grant awarded under this paragraph shall not exceed 75 percent of the cost of developing the strategic plan. “(2) Funds to be used.— Of the funds appropriated pursuant to section 277(c), the Secretary may make available not more than $25,000,000 for each of the fiscal years 2009 and 2010, and $6,250,000 for the period beginning October 1, 2010, and ending December 31, 2010, to provide grants to eligible communities under paragraph (1). “SEC. 277. GENERAL PROVISIONS. “(a) Regulations.— “(1) In general.— The Secretary shall prescribe such regulations as are necessary to carry out the provisions of this subchapter, including— “(A) establishing specific guidelines for the submission and evaluation of strategic plans under section 276; “(B) establishing specific guidelines for the submission and evaluation of grant applications under section 275; and “(C) administering the grant programs established under sections 275 and 276. “(2) Consultations.— The Secretary shall consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives not less than 90 days prior to promulgating any final rule or regulation pursuant to paragraph (1). “(b) Personnel.— The Secretary shall designate such staff as may be necessary to carry out the responsibilities described in this subchapter. “(c) Authorization of Appropriations.— “(1) In general.— There are authorized to be appropriated to the Secretary $150,000,000 for each of the fiscal years 2009 and 2010, and $37,500,000 for the period beginning October 1, 2010, and ending December 31, 2010, to carry out this subchapter. “(2) Availability.— Amounts appropriated pursuant to this subchapter— “(A) shall be available to provide adjustment assistance to communities that have been approved for assistance pursuant to this chapter on or before December 31, 2010; and “(B) shall otherwise remain available until expended. “(3) Supplement not supplant.— Funds appropriated pursuant to this subchapter shall be used to supplement and not supplant other Federal, State, and local public funds expended to provide economic development assistance for communities. “Subchapter B— Community College and Career Training Grant Program “SEC. 278. COMMUNITY COLLEGE AND CAREER TRAINING GRANT PROGRAM. “(a) Grants Authorized.— “(1) In general.— Beginning August 1, 2009, the Secretary may award Community College and Career Training Grants to eligible institutions for the purpose of developing, offering, or improving educational or career training programs for workers eligible for training under section 236. “(2) Limitations.— An eligible institution may not be awarded— “(A) more than one grant under this section; or “(B) a grant under this section in excess of $1,000,000. “(b) Definitions.— In this section: “(1) Eligible institution.— The term ‘eligible institution’ means an institution of higher education (as defined in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002)), but only with respect to a program offered by the institution that can be completed in not more than 2 years. “(2) Secretary.— The term ‘Secretary’ means the Secretary of Labor. “(c) Grant Proposals.— “(1) In general.— An eligible institution seeking to receive a grant under this section shall submit a grant proposal to the Secretary at such time, in such manner, and containing such information as the Secretary may require. “(2) Guidelines.— Not later than June 1, 2009, the Secretary shall— “(A) promulgate guidelines for the submission of grant proposals under this section; and “(B) publish and maintain such guidelines on the website of the Department of Labor. “(3) Assistance.— The Secretary shall offer assistance in preparing a grant proposal to any eligible institution that requests such assistance. “(4) General requirements for grant proposals.— “(A) In general.— A grant proposal submitted to the Secretary under this section shall include a detailed description of— “(i) the specific project for which the grant proposal is submitted, including the manner in which the grant will be used to develop, offer, or improve an educational or career training program that is suited to workers eligible for training under section 236; “(ii) the extent to which the project for which the grant proposal is submitted will meet the educational or career training needs of workers in the community served by the eligible institution who are eligible for training under section 236; “(iii) the extent to which the project for which the grant proposal is submitted fits within any overall strategic plan developed by an eligible community under section 276; “(iv) the extent to which the project for which the grant proposal is submitted relates to any project funded by a Sector Partnership Grant awarded under section 279A; and “(v) any previous experience of the eligible institution in providing educational or career training programs to workers eligible for training under section 236. “(B) Absence of experience.— The absence of any previous experience in providing educational or career training programs described in subparagraph (A)(v) shall not automatically disqualify an eligible institution from receiving a grant under this section. “(5) Community outreach required.— In order to be considered by the Secretary, a grant proposal submitted by an eligible institution under this section shall— “(A) demonstrate that the eligible institution— “(i) reached out to employers, and other entities described in section 276(a)(2)(B) to identify— “(I) any shortcomings in existing educational and career training opportunities available to workers in the community; and “(II) any future employment opportunities within the community and the educational and career training skills required for workers to meet the future employment demand; “(ii) reached out to other similarly situated institutions in an effort to benefit from any best practices that may be shared with respect to providing educational or career training programs to workers eligible for training under section 236; and “(iii) reached out to any eligible partnership in the community that has sought or received a Sector Partnership Grant under section 279A to enhance the effectiveness of each grant and avoid duplication of efforts; and “(B) include a detailed description of— “(i) the extent and outcome of the outreach conducted under subparagraph (A); “(ii) the extent to which the project for which the grant proposal is submitted will contribute to meeting any shortcomings identified under subparagraph (A)(i)(I) or any educational or career training needs identified under subparagraph (A)(i)(II); and “(iii) the extent to which employers, including small- and medium-sized firms within the community, have demonstrated a commitment to employing workers who would benefit from the project for which the grant proposal is submitted. “(d) Criteria for Award of Grants.— “(1) In general.— Subject to the appropriation of funds, the Secretary shall award a grant under this section based on— “(A) a determination of the merits of the grant proposal submitted by the eligible institution to develop, offer, or improve educational or career training programs to be made available to workers eligible for training under section 236; “(B) an evaluation of the likely employment opportunities available to workers who complete an educational or career training program that the eligible institution proposes to develop, offer, or improve; and “(C) an evaluation of prior demand for training programs by workers eligible for training under section 236 in the community served by the eligible institution, as well as the availability and capacity of existing training programs to meet future demand for training programs. “(2) Priority for certain communities.— In awarding grants under this section, the Secretary shall give priority to an eligible institution that serves a community that the Secretary of Commerce has determined under section 273 is eligible to apply for assistance under subchapter A within the 5-year period preceding the date on which the grant proposal is submitted to the Secretary under this section. “(3) Matching requirements.— A grant awarded under this section may not be used to satisfy any private matching requirement under any other provision of law. “(e) Annual Report.— Not later than December 15 in each of the calendar years 2009 through 2011, the Secretary shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report— “(1) describing each grant awarded under this section during the preceding fiscal year; and “(2) assessing the impact of each award of a grant under this section in a fiscal year preceding the fiscal year referred to in paragraph (1) on workers receiving training under section 236. “SEC. 279. AUTHORIZATION OF APPROPRIATIONS. “(a) Authorization of Appropriations.— There are authorized to be appropriated to the Secretary of Labor $40,000,000 for each of the fiscal years 2009 and 2010, and $10,000,000 for the period beginning October 1, 2010, and ending December 31, 2010, to fund the Community College and Career Training Grant Program. Funds appropriated pursuant to this section shall remain available until expended. “(b) Supplement Not Supplant.— Funds appropriated pursuant to this section shall be used to supplement and not supplant other Federal, State, and local public funds expended to support community college and career training programs. “Subchapter C— Industry or Sector Partnership Grant Program for Communities Impacted by Trade “SEC. 279A. INDUSTRY OR SECTOR PARTNERSHIP GRANT PROGRAM FOR COMMUNITIES IMPACTED BY TRADE. “(a) Purpose.— The purpose of this subchapter is to facilitate efforts by industry or sector partnerships to strengthen and revitalize industries and create employment opportunities for workers in communities impacted by trade. “(b) Definitions.— In this subchapter: “(1) Community impacted by trade.— The term ‘community impacted by trade’ has the meaning given that term in section 271. “(2) Dislocated worker.— The term ‘dislocated worker’ means a worker who has been totally or partially separated, or is threatened with total or partial separation, from employment in an industry or sector in a community impacted by trade. “(3) Eligible partnership.— The term ‘eligible partnership’ means a voluntary partnership composed of public and private persons, firms, or other entities within a community impacted by trade, that shall include representatives of— “(A) an industry or sector within the community, including an industry association; “(B) local, county, or State government; “(C) multiple firms in the industry or sector, including small- and medium-sized firms, within the community; “(D) local workforce investment boards established under section 117 of the Workforce Investment Act of 1998 (29 U.S.C. 2832); “(E) labor organizations, including State labor federations and labor-management initiatives, representing workers in the community; and “(F) educational institutions, local educational agencies, or other training providers serving the community. “(4) Lead entity.— The term ‘lead entity’ means— “(A) an entity designated by the eligible partnership to be responsible for submitting a grant proposal under subsection (e) and serving as the eligible partnership’s fiscal agent in expending any Sector Partnership Grant awarded under this section; or “(B) a State agency designated by the Governor of the State to carry out the responsibilities described in subparagraph (A). “(5) Secretary.— The term ‘Secretary’ means the Secretary of Labor. “(6) Targeted industry or sector.— The term ‘targeted industry or sector’ means the industry or sector represented by an eligible partnership. “(c) Sector Partnership Grants Authorized.— Beginning Effective date. on August 1, 2009, and subject to the appropriation of funds, the Secretary shall award Sector Partnership Grants to eligible partnerships to assist the eligible partnerships in carrying out projects, over periods of not more than 3 years, to strengthen and revitalize industries and sectors and create employment opportunities for dislocated workers. “(d) Use of Sector Partnership Grants.— An eligible partnership may use a Sector Partnership Grant to carry out any project that the Secretary determines will further the purpose of this subchapter, which may include— “(1) identifying the skill needs of the targeted industry or sector and any gaps in the available supply of skilled workers in the community impacted by trade, and developing strategies for filling the gaps, including by— “(A) developing systems to better link firms in the targeted industry or sector to available skilled workers; “(B) helping firms in the targeted industry or sector to obtain access to new sources of qualified job applicants; “(C) retraining dislocated and incumbent workers; or “(D) facilitating the training of new skilled workers by aligning the instruction provided by local suppliers of education and training services with the needs of the targeted industry or sector; “(2) analyzing the skills and education levels of dislocated and incumbent workers and developing training to address skill gaps that prevent such workers from obtaining jobs in the targeted industry or sector; “(3) helping firms, especially small- and medium-sized firms, in the targeted industry or sector increase their productivity and the productivity of their workers; “(4) helping such firms retain incumbent workers; “(5) developing learning consortia of small- and medium-sized firms in the targeted industry or sector with similar training needs to enable the firms to combine their purchases of training services, and thereby lower their training costs; “(6) providing information and outreach activities to firms in the targeted industry or sector regarding the activities of the eligible partnership and other local service suppliers that could assist the firms in meeting needs for skilled workers; “(7) seeking, applying, and disseminating best practices learned from similarly situated communities impacted by trade in the development and implementation of economic growth and revitalization strategies; and “(8) identifying additional public and private resources to support the activities described in this subsection, which may include the option to apply for a community grant under section 275 or a Community College and Career Training Grant under section 278 (subject to meeting any additional requirements of those sections). “(e) Grant Proposals.— “(1) In general.— The lead entity of an eligible partnership seeking to receive a Sector Partnership Grant under this section shall submit a grant proposal to the Secretary at such time, in such manner, and containing such information as the Secretary may require. “(2) General requirements of grant proposals.— A grant proposal submitted under paragraph (1) shall, at a minimum— “(A) identify the members of the eligible partnership; “(B) identify the targeted industry or sector for which the eligible partnership intends to carry out projects using the Sector Partnership Grant; “(C) describe the goals that the eligible partnership intends to achieve to promote the targeted industry or sector; “(D) describe the projects that the eligible partnership will undertake to achieve such goals; “(E) demonstrate that the eligible partnership has the organizational capacity to carry out the projects described in subparagraph (D); “(F) explain— “(i) whether— “(I) the community impacted by trade has sought or received a community grant under section 275; “(II) an eligible institution in the community has sought or received a Community College and Career Training Grant under section 278; or “(III) any other entity in the community has received funds pursuant to any other federally funded training project; and “(ii) how the eligible partnership will coordinate its use of a Sector Partnership Grant with the use of such other grants or funds in order to enhance the effectiveness of each grant and any such funds and avoid duplication of efforts; and “(G) include performance measures, developed based on the performance measures issued by the Secretary under subsection (g)(2), and a timeline for measuring progress toward achieving the goals described in subparagraph (C). “(f) Award of Grants.— “(1) In general.— Upon application by the lead entity of an eligible partnership, the Secretary may award a Sector Partnership Grant to the eligible partnership to assist the partnership in carrying out any of the projects in the grant proposal that the Secretary determines will further the purposes of this subchapter. “(2) Limitations.— An eligible partnership may not be awarded— “(A) more than one Sector Partnership Grant; or “(B) a total grant award under this subchapter in excess of— “(i) except as provided in clause (ii), $2,500,000; or “(ii) in the case of an eligible partnership located within a community impacted by trade that is not served by an institution receiving a Community College and Career Training Grant under section 278, $3,000,000. “(g) Administration by the Secretary.— “(1) Technical assistance and oversight.— “(A) In general.— The Secretary shall provide technical assistance to, and oversight of, the lead entity of an eligible partnership in applying for and administering Sector Partnership Grants awarded under this section. “(B) Technical assistance.— Technical assistance provided under subparagraph (A) shall include providing conferences and such other methods of collecting and disseminating information on best practices developed by eligible partnerships as the Secretary determines appropriate. “(C) Grants or contracts for technical assistance.— The Secretary may award a grant or contract to one or more national or State organizations to provide technical assistance to foster the planning, formation, and implementation of eligible partnerships. “(2) Performance measures.— The Secretary shall issue a range of performance measures, with quantifiable benchmarks, and methodologies that eligible partnerships may use to measure progress toward the goals described in subsection (e). In developing such measures, the Secretary shall consider the benefits of the eligible partnership and its activities for workers, firms, industries, and communities. “(h) Reports.— “(1) Progress report.— Not later than 1 year after receiving a Sector Partnership Grant, and 3 years thereafter, the lead entity shall submit to the Secretary, on behalf of the eligible partnership, a report containing— “(A) a detailed description of the progress made toward achieving the goals described in subsection (e)(2)(C), using the performance measures required under subsection (e)(2)(G); “(B) a detailed evaluation of the impact of the grant award on workers and employers in the community impacted by trade; and “(C) a detailed description of all expenditures of funds awarded to the eligible partnership under the Sector Partnership Grant approved by the Secretary under this subchapter. “(2) Annual report.— Not later than December 15 in each of the calendar years 2009 through 2011, the Secretary shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report— “(A) describing each Sector Partnership Grant awarded to an eligible partnership during the preceding fiscal year; and “(B) assessing the impact of each Sector Partnership Grant awarded in a fiscal year preceding the fiscal year referred to in subparagraph (A) on workers and employers in communities impacted by trade. “SEC. 279B. AUTHORIZATION OF APPROPRIATIONS. “(a) In General.— There are authorized to be appropriated to the Secretary of Labor $40,000,000 for each of the fiscal years 2009 and 2010, and $10,000,000 for the period beginning October 1, 2010, and ending December 31, 2010, to carry out the Sector Partnership Grant program under section 279A. Funds appropriated pursuant to this section shall remain available until expended. “(b) Supplement Not Supplant.— Funds appropriated pursuant to this section shall be used to supplement and not supplant other Federal, State, and local public funds expended to support the economic development of local communities. “(c) Administrative Costs.— The Secretary may retain not more than 5 percent of the funds appropriated pursuant to this section for each fiscal year to administer the Sector Partnership Grant program under section 279A. “Subchapter D— General Provisions “SEC. 279C. RULE OF CONSTRUCTION.   “Nothing in this chapter prevents a worker from receiving trade adjustment assistance under chapter 2 of this title at the same time the worker is receiving assistance in any manner from— “(1) a community receiving a community grant under subchapter A; “(2) an eligible institution receiving a Community College and Career Training Grant under subchapter B; or “(3) an eligible partnership receiving a Sector Partnership Grant under subchapter C.” . SEC. 1873. CONFORMING AMENDMENTS. (a) Table of Contents.— The table of contents of the Trade Act of 1974 is amended by striking the items relating to chapter 4 of title II and inserting the following: “Chapter 4— Trade Adjustment Assistance for Communities “Subchapter A— Trade Adjustment Assistance for Communities “Sec. 271.  Definitions. “Sec. 272.  Establishment of trade adjustment assistance for communities program. “Sec. 273.  Eligibility; notification. “Sec. 274.  Technical assistance. “Sec. 275.  Grants for eligible communities. “Sec. 276.  Strategic plans. “Sec. 277.  General provisions. “Subchapter B— Community College and Career Training Grant Program “Sec. 278.  Community college and career training grant program. “Sec. 279.  Authorization of appropriations. “Subchapter C— Industry or Sector Partnership Grant Program for Communities Impacted by Trade “Sec. 279A.  Industry or sector partnership grant program for communities impacted by trade. “Sec. 279B.  Authorization of appropriations. “Subchapter D— General Provisions “Sec. 279C.  Rule of construction.” (b) Judicial Review.— (1) Section 284(a) of the Trade Act of 1974 (19 U.S.C. 2395(a)) is amended— (A) by inserting “or 296” after “section 293”; (B) by striking “or any other interested domestic party” and inserting “or authorized representative of a community”; and (C) by striking “section 271” and inserting “section 273”. (2) Section 1581(d) of title 28, United States Code, is amended— (A) in paragraph (2), by striking “; and” and inserting a semicolon; (B) in paragraph (3)— (i) by striking “271” and inserting “273”; and (ii) by striking the period and inserting “; and”; and (C) by adding at the end the following: “(4) any final determination of the Secretary of Agriculture under section 293 or 296 of the Trade Act of 1974 (19 U.S.C. 2401b) with respect to the eligibility of a group of agricultural commodity producers for adjustment assistance under such Act.” . PART IV— TRADE ADJUSTMENT ASSISTANCE FOR FARMERS SEC. 1881. DEFINITIONS.   Section 291 of the Trade Act of 1974 (19 U.S.C. 2401) is amended— (1) by amending paragraph (1) to read as follows: “(1) Agricultural commodity.— The term ‘agricultural commodity’ includes— “(A) any agricultural commodity (including livestock) in its raw or natural state; “(B) any class of goods within an agricultural commodity; and “(C) in the case of an agricultural commodity producer described in paragraph (2)(B), wild-caught aquatic species.” ; (2) by amending paragraph (2) to read as follows: “(2) Agricultural commodity producer.— The term ‘agricultural commodity producer’ means— “(A) a person that shares in the risk of producing an agricultural commodity and that is entitled to a share of the commodity for marketing, including an operator, a sharecropper, or a person that owns or rents the land on which the commodity is produced; or “(B) a person that reports gain or loss from the trade or business of fishing on the person’s annual Federal income tax return for the taxable year that most closely corresponds to the marketing year with respect to which a petition is filed under section 292.” ; and (3) by adding at the end the following: “(7) Marketing year.— The term ‘marketing year’ means— “(A) a marketing year designated by the Secretary with respect to an agricultural commodity; or “(B) in the case of an agricultural commodity with respect to which the Secretary does not designate a marketing year, a calendar year.” . SEC. 1882. ELIGIBILITY. (a) In General.— Section 292 of the Trade Act of 1974 (19 U.S.C. 2401a) is amended by striking subsections (c) through (e) and inserting the following: “(c) Group Eligibility Requirements.— Certification. The Secretary shall certify a group of agricultural commodity producers as eligible to apply for adjustment assistance under this chapter if the Secretary determines that— “(1) (A) the national average price of the agricultural commodity produced by the group during the most recent marketing year for which data are available is less than 85 percent of the average of the national average price for the commodity in the 3 marketing years preceding such marketing year; “(B) the quantity of production of the agricultural commodity produced by the group during such marketing year is less than 85 percent of the average of the quantity of production of the commodity produced by the group in the 3 marketing years preceding such marketing year; “(C) the value of production of the agricultural commodity produced by the group during such marketing year is less than 85 percent of the average value of production of the commodity produced by the group in the 3 marketing years preceding such marketing year; or “(D) the cash receipts for the agricultural commodity produced by the group during such marketing year are less than 85 percent of the average of the cash receipts for the commodity produced by the group in the 3 marketing years preceding such marketing year; “(2) the volume of imports of articles like or directly competitive with the agricultural commodity produced by the group in the marketing year with respect to which the group files the petition increased compared to the average volume of such imports during the 3 marketing years preceding such marketing year; and “(3) the increase in such imports contributed importantly to the decrease in the national average price, quantity of production, or value of production of, or cash receipts for, the agricultural commodity, as described in paragraph (1). “(d) Eligibility of Certain Other Producers.— An agricultural commodity producer or group of producers that resides outside of the State or region identified in the petition filed under subsection (a) may file a request to become a party to that petition not later than 15 days after the date the notice is published in the Federal Register under subsection (a) with respect to that petition. “(e) Treatment of Classes of Goods Within a Commodity.— In any case in which there are separate classes of goods within an agricultural commodity, the Secretary shall treat each class as a separate commodity in determining under subsection (c)— “(1) group eligibility; “(2) the national average price, quantity of production, or value of production, or cash receipts; and “(3) the volume of imports.” . (b) Conforming Amendments.— Section 293 of the Trade Act of 1974 (19 U.S.C. 2401b) is amended— (1) in subsection (a), by striking “section 292 (c) or (d), as the case may be,” and inserting “section 292(c)”; and (2) in subsection (c), by striking “decline in price for” and inserting “decrease in the national average price, quantity of production, or value of production of, or cash receipts for,”. SEC. 1883. BENEFITS. (a) In General.— Section 296 of the Trade Act of 1974 (19 U.S.C. 2401e) is amended to read as follows: “SEC. 296. QUALIFYING REQUIREMENTS AND BENEFITS FOR AGRICULTURAL COMMODITY PRODUCERS. “(a) In General.— “(1) Requirements.— “(A) In general.— Deadline. Benefits under this chapter shall be available to an agricultural commodity producer covered by a certification under this chapter who files an application for such benefits not later than 90 days after the date on which the Secretary makes a determination and issues a certification of eligibility under section 293, if the producer submits to the Secretary sufficient information to establish that— “(i) the producer produced the agricultural commodity covered by the application filed under this subsection in the marketing year with respect to which the petition is filed and in at least 1 of the 3 marketing years preceding that marketing year; “(ii) (I) the quantity of the agricultural commodity that was produced by the producer in the marketing year with respect to which the petition is filed has decreased compared to the most recent marketing year preceding that marketing year for which data are available; or “(II) (aa) the price received for the agricultural commodity by the producer during the marketing year with respect to which the petition is filed has decreased compared to the average price for the commodity received by the producer in the 3 marketing years preceding that marketing year; or “(bb) the county level price maintained by the Secretary for the agricultural commodity on the date on which the petition is filed has decreased compared to the average county level price for the commodity in the 3 marketing years preceding the date on which the petition is filed; and “(iii) the producer is not receiving— “(I) cash benefits under chapter 2 or 3; or “(II) benefits based on the production of an agricultural commodity covered by another petition filed under this chapter. “(B) Special rule with respect to crops not grown every year.— For purposes of subparagraph (A)(ii)(II)(aa), if a petition is filed with respect to an agricultural commodity that is not produced by the producer every year, an agricultural commodity producer producing that commodity may establish the average price received for the commodity by the producer in the 3 marketing years preceding the year with respect to which the petition is filed by using average price data for the 3 most recent marketing years in which the producer produced the commodity and for which data are available. “(2) Limitations based on adjusted gross income.— “(A) In general.— Notwithstanding any other provision of this chapter, an agricultural commodity producer shall not be eligible for assistance under this chapter in any year in which the average adjusted gross income (as defined in section 1001D(a) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(a))) of the producer exceeds the level set forth in subparagraph (A) or (B) of section 1001D(b)(1) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(b)(1)), whichever is applicable. “(B) Demonstration of compliance.— An agricultural commodity producer shall provide to the Secretary such information as the Secretary determines necessary to demonstrate that the producer is in compliance with the limitation under subparagraph (A). “(C) Counter-cyclical and acre payments.— The total amount of payments made to an agricultural commodity producer under this chapter during any crop year may not exceed the limitations on payments set forth in subsections (b)(2), (b)(3), (c)(2), and (c)(3) of section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308). “(b) Technical Assistance.— “(1) Initial technical assistance.— “(A) In general.— An agricultural commodity producer that files an application and meets the requirements under subsection (a)(1) shall be entitled to receive initial technical assistance designed to improve the competitiveness of the production and marketing of the agricultural commodity with respect to which the producer was certified under this chapter. Such assistance shall include information regarding— “(i) improving the yield and marketing of that agricultural commodity; and “(ii) the feasibility and desirability of substituting one or more alternative agricultural commodities for that agricultural commodity. “(B) Transportation and subsistence expenses.— “(i) In general.— The Secretary may authorize supplemental assistance necessary to defray reasonable transportation and subsistence expenses incurred by an agricultural commodity producer in connection with initial technical assistance under subparagraph (A) if such assistance is provided at facilities that are not within normal commuting distance of the regular place of residence of the producer. “(ii) Exceptions.— The Secretary may not authorize payments to an agricultural commodity producer under clause (i)— “(I) for subsistence expenses that exceed the lesser of— “(aa) the actual per diem expenses for subsistence incurred by the producer; or “(bb) the prevailing per diem allowance rate authorized under Federal travel regulations; or “(II) for travel expenses that exceed the prevailing mileage rate authorized under the Federal travel regulations. “(2) Intensive technical assistance.— A producer that has completed initial technical assistance under paragraph (1) shall be eligible to participate in intensive technical assistance. Such assistance shall consist of— “(A) a series of courses to further assist the producer in improving the competitiveness of the producer in producing— “(i) the agricultural commodity with respect to which the producer was certified under this chapter; or “(ii) another agricultural commodity; and “(B) assistance in developing an initial business plan based on the courses completed under subparagraph (A). “(3) Initial business plan.— “(A) Approval by secretary.— The Secretary shall approve an initial business plan developed under paragraph (2)(B) if the plan— “(i) reflects the skills gained by the producer through the courses described in paragraph (2)(A); and “(ii) demonstrates how the producer will apply those skills to the circumstances of the producer. “(B) Financial assistance for implementing initial business plan.— Upon approval of the producer’s initial business plan by the Secretary under subparagraph (A), a producer shall be entitled to an amount not to exceed $4,000 to— “(i) implement the initial business plan; or “(ii) develop a long-term business adjustment plan under paragraph (4). “(4) Long-term business adjustment plan.— “(A) In general.— A producer that has completed intensive technical assistance under paragraph (2) and whose initial business plan has been approved under paragraph (3)(A) shall be eligible for, in addition to the amount under subparagraph (C), assistance in developing a long-term business adjustment plan. “(B) Approval of long-term business adjustment plans.— The Secretary shall approve a long-term business adjustment plan developed under subparagraph (A) if the Secretary determines that the plan— “(i) includes steps reasonably calculated to materially contribute to the economic adjustment of the producer to changing market conditions; “(ii) takes into consideration the interests of the workers employed by the producer; and “(iii) demonstrates that the producer will have sufficient resources to implement the business plan. “(C) Plan implementation.— Upon approval of the producer’s long-term business adjustment plan under subparagraph (B), a producer shall be entitled to an amount not to exceed $8,000 to implement the long-term business adjustment plan. “(c) Maximum Amount of Assistance.— An agricultural commodity producer may receive not more than $12,000 under paragraphs (3) and (4) of subsection (b) in the 36-month period following certification under section 293. “(d) Limitations on Other Assistance.— An agricultural commodity producer that receives benefits under this chapter (other than initial technical assistance under subsection (b)(1)) shall not be eligible for cash benefits under chapter 2 or 3.” . (b) Clerical Amendment.— The table of contents of the Trade Act of 1974 is amended by striking the item relating to section 296 and inserting the following: “Sec. 296.  Qualifying requirements and benefits for agricultural commodity producers.”. SEC. 1884. REPORT.   Section 293 of the Trade Act of 1974 (19 U.S.C. 2401b) is amended by adding at the end the following: “(d) Report by the Secretary.— Not later than January 30, 2010, and annually thereafter, the Secretary of Agriculture shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report containing the following information with respect to adjustment assistance provided under this chapter during the preceding fiscal year: “(1) A list of the agricultural commodities covered by a certification under this chapter. “(2) The States or regions in which such commodities are produced and the aggregate amount of such commodities produced in each such State or region. “(3) The total number of agricultural commodity producers, by congressional district, receiving benefits under this chapter. “(4) The total number of agricultural commodity producers, by congressional district, receiving technical assistance under this chapter.” . SEC. 1885. FRAUD AND RECOVERY OF OVERPAYMENTS.   Section 297(a)(1) of the Trade Act of 1974 (19 U.S.C. 2401f(a)(1)) is amended by inserting “or has expended funds received under this chapter for a purpose that was not approved by the Secretary,” after “entitled,”. SEC. 1886. DETERMINATION OF INCREASES OF IMPORTS FOR CERTAIN FISHERMEN.   For purposes of chapters 2 and 6 of title II of the Trade Act of 1974 (19 U.S.C. 2251 et seq.), in the case of an agricultural commodity producer that— (1) is a fisherman or aquaculture producer, and (2) is otherwise eligible for adjustment assistance under chapter 2 or 6, as the case may be, the increase in imports of articles like or directly competitive with the agricultural commodity produced by such producer may be based on imports of wild-caught seafood, farm-raised seafood, or both. SEC. 1887. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE FOR FARMERS.   Section 298(a) of the Trade Act of 1974 (19 U.S.C. 2401g(a)) is amended by striking “fiscal years 2003 through 2007” and all that follows through the end period and inserting “fiscal years 2009 and 2010, and $22,500,000 for the period beginning October 1, 2010, and ending December 31, 2010, to carry out the purposes of this chapter, including administrative costs, and salaries and expenses of employees of the Department of Agriculture.”. PART V— GENERAL PROVISIONS SEC. 1891. EFFECTIVE DATE. (a) In General.— Except as otherwise provided in this subtitle, and subsection (b) of this section, this subtitle and the amendments made by this subtitle— (1) shall take effect upon the expiration of the 90-day period beginning on the date of the enactment of this Act; and (2) Applicability. shall apply to— (A) petitions for certification filed under chapter 2, 3, or 6 of title II of the Trade Act of 1974 on or after the effective date described in paragraph (1); and (B) petitions for assistance and proposals for grants filed under chapter 4 of title II of the Trade Act of 1974 on or after such effective date. (b) Certifications Made Before Effective Date.— Notwithstanding subsection (a)— (1) a worker shall continue to receive (or be eligible to receive) trade adjustment assistance and other benefits under subchapter B of chapter 2 of title II of the Trade Act of 1974, as in effect on the day before the effective date described in subsection (a)(1), for any week for which the worker meets the eligibility requirements of such chapter 2 as in effect on the day before such effective date, if the worker— (A) is certified as eligible for trade adjustment assistance benefits under such chapter 2 pursuant to a petition filed under section 221 of the Trade Act of 1974 on or before such effective date; and (B) would otherwise be eligible to receive trade adjustment assistance benefits under such chapter as in effect on the day before such effective date; (2) a worker shall continue to receive (or be eligible to receive) benefits under section 246(a)(2) of the Trade Act of 1974, as in effect on the day before the effective date described in subsection (a)(1), for such period for which the worker meets the eligibility requirements of section 246 of that Act as in effect on the day before such effective date, if the worker— (A) is certified as eligible for benefits under such section 246 pursuant to a petition filed under section 221 of the Trade Act of 1974 on or before such effective date; and (B) would otherwise be eligible to receive benefits under such section 246(a)(2) as in effect on the day before such effective date; and (3) a firm shall continue to receive (or be eligible to receive) adjustment assistance under chapter 3 of title II of the Trade Act of 1974, as in effect on the day before the effective date described in subsection (a)(1), for such period for which the firm meets the eligibility requirements of such chapter 3 as in effect on the day before such effective date, if the firm— (A) is certified as eligible for benefits under such chapter 3 pursuant to a petition filed under section 251 of the Trade Act of 1974 on or before such effective date; and (B) would otherwise be eligible to receive benefits under such chapter 3 as in effect on the day before such effective date. SEC. 1892. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE PROGRAMS. (a) For Workers.— Section 245(a) of the Trade Act of 1974 (19 U.S.C. 2317(a)) is amended by striking “December 31, 2007” and inserting “December 31, 2010”. (b) Termination.— Section 285 of the Trade Act of 1974 (19 U.S.C. 2271 note prec.) is amended— (1) in subsection (a), by striking “December 31, 2007” each place it appears and inserting “December 31, 2010”; and (2) by amending subsection (b) to read as follows: “(b) Other Assistance.— “(1) Assistance for firms.— “(A) In general.— Except as provided in subparagraph (B), technical assistance and grants may not be provided under chapter 3 after December 31, 2010. “(B) Exception.— Notwithstanding subparagraph (A), any technical assistance or grant approved under chapter 3 on or before December 31, 2010, may be provided— “(i) to the extent funds are available pursuant to such chapter for such purpose; and “(ii) to the extent the recipient of the technical assistance or grant is otherwise eligible to receive such technical assistance or grant, as the case may be. “(2) Farmers.— “(A) In general.— Except as provided in subparagraph (B), technical assistance and financial assistance may not be provided under chapter 6 after December 31, 2010. “(B) Exception.— Notwithstanding subparagraph (A), any technical or financial assistance approved under chapter 6 on or before December 31, 2010, may be provided— “(i) to the extent funds are available pursuant to such chapter for such purpose; and “(ii) to the extent the recipient of the technical or financial assistance is otherwise eligible to receive such technical or financial assistance, as the case may be. “(3) Assistance for communities.— “(A) In general.— Except as provided in subparagraph (B), technical assistance and grants may not be provided under chapter 4 after December 31, 2010. “(B) Exception.— Notwithstanding subparagraph (A), any technical assistance or grant approved under chapter 4 on or before December 31, 2010, may be provided— “(i) to the extent funds are available pursuant to such chapter for such purpose; and “(ii) to the extent the recipient of the technical assistance or grant is otherwise eligible to receive such technical assistance or grant, as the case may be.” . SEC. 1893. TERMINATION; RELATED PROVISIONS. (a) Sunset.— (1) In general.— Subject to paragraph (2), the amendments made by this subtitle to chapters 2, 3, 4, 5, and 6 of title II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.) shall not apply on or after January 1, 2011. (2) Exception.— The amendments made by this subtitle to section 285 of the Trade Act of 1974 shall continue to apply on and after January 1, 2011, with respect to— (A) workers certified as eligible for trade adjustment assistance benefits under chapter 2 of title II of that Act pursuant to petitions filed under section 221 of that Act before January 1, 2011; (B) firms certified as eligible for technical assistance or grants under chapter 3 of title II of that Act pursuant to petitions filed under section 251 of that Act before January 1, 2011; (C) recipients approved for technical assistance or grants under chapter 4 of title II of that Act pursuant to petitions for assistance or proposals for grants (as the case may be) filed pursuant to such chapter before January 1, 2011; and (D) agricultural commodity producers certified as eligible for technical or financial assistance under chapter 6 of title II of that Act pursuant to petitions filed under section 292 of that Act before January 1, 2011. (b) Application of Prior Law.— Chapters 2, 3, 4, 5, and 6 of title II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.) shall be applied and administered beginning January 1, 2011, as if the amendments made by this subtitle (other than part VI) had never been enacted, except that in applying and administering such chapters— (1) section 245 of that Act shall be applied and administered by substituting “2011” for “2007”; (2) section 246(b) of that Act shall be applied and administered by substituting “December 31, 2011” for “the date that is 5 years” and all that follows through “State”; (3) section 256(b) of that Act shall be applied and administered by substituting “the 1-year period beginning January 1, 2011” for “each of fiscal years 2003 through 2007, and $4,000,000 for the 3-month period beginning October 1, 2007”; (4) section 298(a) of that Act shall be applied and administered by substituting “the 1-year period beginning January 1, 2011” for “each of the fiscal years” and all that follows through “October 1, 2007”; and (5) subject to subsection (a)(2), section 285 of that Act shall be applied and administered— (A) in subsection (a), by substituting “2011” for “2007” each place it appears; and (B) by applying and administering subsection (b) as if it read as follows: “(b) Other Assistance.— “(1) Assistance for firms.— “(A) In general.— Except as provided in subparagraph (B), assistance may not be provided under chapter 3 after December 31, 2011. “(B) Exception.— Notwithstanding subparagraph (A), any assistance approved under chapter 3 on or before December 31, 2011, may be provided— “(i) to the extent funds are available pursuant to such chapter for such purpose; and “(ii) to the extent the recipient of the assistance is otherwise eligible to receive such assistance. “(2) Farmers.— “(A) In general.— Except as provided in subparagraph (B), assistance may not be provided under chapter 6 after December 31, 2011. “(B) Exception.— Notwithstanding subparagraph (A), any assistance approved under chapter 6 on or before December 31, 2011, may be provided— “(i) to the extent funds are available pursuant to such chapter for such purpose; and “(ii) to the extent the recipient of the assistance is otherwise eligible to receive such assistance.” . SEC. 1894. GOVERNMENT ACCOUNTABILITY OFFICE REPORT.   Not later than September 30, 2012, the Comptroller General of the United States shall prepare and submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a comprehensive report on the operation and effectiveness of the amendments made by this subtitle to chapters 2, 3, 4, and 6 of the Trade Act of 1974. SEC. 1895. EMERGENCY DESIGNATION.   Amounts appropriated pursuant to this subtitle are designated as an emergency requirement and necessary to meet emergency needs pursuant to section 204(a) of S. Con. Res. 21 (110th Congress) and section 301(b)(2) of S. Con. Res. 70 (110th Congress), the concurrent resolutions on the budget for fiscal years 2008 and 2009. PART VI— HEALTH COVERAGE IMPROVEMENT SEC. 1899. SHORT TITLE.   This part may be cited as the “TAA Health Coverage Improvement Act of 2009”. SEC. 1899A. IMPROVEMENT OF THE AFFORDABILITY OF THE CREDIT. (a) Improvement of Affordability.— (1) In general.— Section 35(a) of the Internal Revenue Code of 1986 26 USC 35. (relating to credit for health insurance costs of eligible individuals) is amended by inserting “(80 percent in the case of eligible coverage months beginning before January 1, 2011)” after “65 percent”. (2) Conforming amendment.— Section 7527(b) of such Code 26 USC 7527. (relating to advance payment of credit for health insurance costs of eligible individuals) is amended by inserting “(80 percent in the case of eligible coverage months beginning before January 1, 2011)” after “65 percent”. (b) Effective Date.— The amendments made by this section shall apply to coverage months beginning on or after the first day of the first month beginning 60 days after the date of the enactment of this Act. SEC. 1899B. PAYMENT FOR MONTHLY PREMIUMS PAID PRIOR TO COMMENCEMENT OF ADVANCE PAYMENTS OF CREDIT. (a) Payment for Premiums Due Prior to Commencement of Advance Payments of Credit.— Section 7527 of the Internal Revenue Code of 1986 (relating to advance payment of credit for health insurance costs of eligible individuals) is amended by adding at the end the following new subsection: “(e) Payment for Premiums Due Prior to Commencement of Advance Payments.— In the case of eligible coverage months beginning before January 1, 2011— “(1) In general.— The program established under subsection (a) shall provide that the Secretary shall make 1 or more retroactive payments on behalf of a certified individual in an aggregate amount equal to 80 percent of the premiums for coverage of the taxpayer and qualifying family members under qualified health insurance for eligible coverage months (as defined in section 35(b)) occurring prior to the first month for which an advance payment is made on behalf of such individual under subsection (a). “(2) Reduction of payment for amounts received under national emergency grants.— The amount of any payment determined under paragraph (1) shall be reduced by the amount of any payment made to the taxpayer for the purchase of qualified health insurance under a national emergency grant pursuant to section 173(f) of the Workforce Investment Act of 1998 for a taxable year including the eligible coverage months described in paragraph (1).” . (b) Effective Date.— The amendments made by this section shall apply to coverage months beginning after December 31, 2008. (c) Transitional Rule.— The Secretary of the Treasury shall not be required to make any payments under section 7527(e) of the Internal Revenue Code of 1986, as added by this section, until after the date that is 6 months after the date of the enactment of this Act. SEC. 1899C. TAA RECIPIENTS NOT ENROLLED IN TRAINING PROGRAMS ELIGIBLE FOR CREDIT. (a) In General.— Paragraph (2) of section 35(c) of the Internal Revenue Code of 1986 (defining eligible TAA recipient) is amended to read as follows: “(2) Eligible taa recipient.— “(A) In general.— Except as provided in subparagraph (B), the term ‘eligible TAA recipient’ means, with respect to any month, any individual who is receiving for any day of such month a trade readjustment allowance under chapter 2 of title II of the Trade Act of 1974 or who would be eligible to receive such allowance if section 231 of such Act were applied without regard to subsection (a)(3)(B) of such section. An individual shall continue to be treated as an eligible TAA recipient during the first month that such individual would otherwise cease to be an eligible TAA recipient by reason of the preceding sentence. “(B) Special rule.— In the case of any eligible coverage month beginning after the date of the enactment of this paragraph and before January 1, 2011, the term ‘eligible TAA recipient’ means, with respect to any month, any individual who— “(i) is receiving for any day of such month a trade readjustment allowance under chapter 2 of title II of the Trade Act of 1974, “(ii) would be eligible to receive such allowance except that such individual is in a break in training provided under a training program approved under section 236 of such Act that exceeds the period specified in section 233(e) of such Act, but is within the period for receiving such allowances provided under section 233(a) of such Act, or “(iii) is receiving unemployment compensation (as defined in section 85(b)) for any day of such month and who would be eligible to receive such allowance for such month if section 231 of such Act were applied without regard to subsections (a)(3)(B) and (a)(5) thereof. An individual shall continue to be treated as an eligible TAA recipient during the first month that such individual would otherwise cease to be an eligible TAA recipient by reason of the preceding sentence.” . (b) Effective Date.— The amendment made by this section shall apply to coverage months beginning after the date of the enactment of this Act. SEC. 1899D. TAA PRE-CERTIFICATION PERIOD RULE FOR PURPOSES OF DETERMINING WHETHER THERE IS A 63-DAY LAPSE IN CREDITABLE COVERAGE. (a) IRC Amendment.— Section 9801(c)(2) of the Internal Revenue Code of 1986 26 USC 9801. (relating to not counting periods before significant breaks in creditable coverage) is amended by adding at the end the following new subparagraph: “(D) TAA-eligible individuals.— In the case of plan years beginning before January 1, 2011— “(i) TAA pre-certification period rule.— In the case of a TAA-eligible individual, the period beginning on the date the individual has a TAA-related loss of coverage and ending on the date which is 7 days after the date of the issuance by the Secretary (or by any person or entity designated by the Secretary) of a qualified health insurance costs credit eligibility certificate for such individual for purposes of section 7527 shall not be taken into account in determining the continuous period under subparagraph (A). “(ii) Definitions.— The terms ‘TAA-eligible individual’ and ‘TAA-related loss of coverage’ have the meanings given such terms in section 4980B(f)(5)(C)(iv).” . (b) ERISA Amendment.— Section 701(c)(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1181(c)(2)) is amended by adding at the end the following new subparagraph: “(C) TAA-eligible individuals.— In the case of plan years beginning before January 1, 2011— “(i) TAA pre-certification period rule.— In the case of a TAA-eligible individual, the period beginning on the date the individual has a TAA-related loss of coverage and ending on the date that is 7 days after the date of the issuance by the Secretary (or by any person or entity designated by the Secretary) of a qualified health insurance costs credit eligibility certificate for such individual for purposes of section 7527 of the Internal Revenue Code of 1986 shall not be taken into account in determining the continuous period under subparagraph (A). “(ii) Definitions.— The terms ‘TAA-eligible individual’ and ‘TAA-related loss of coverage’ have the meanings given such terms in section 605(b)(4).” . (c) PHSA Amendment.— Section 2701(c)(2) of the Public Health Service Act (42 U.S.C. 300gg(c)(2)) is amended by adding at the end the following new subparagraph: “(C) TAA-eligible individuals.— In the case of plan years beginning before January 1, 2011— “(i) TAA pre-certification period rule.— In the case of a TAA-eligible individual, the period beginning on the date the individual has a TAA-related loss of coverage and ending on the date that is 7 days after the date of the issuance by the Secretary (or by any person or entity designated by the Secretary) of a qualified health insurance costs credit eligibility certificate for such individual for purposes of section 7527 of the Internal Revenue Code of 1986 shall not be taken into account in determining the continuous period under subparagraph (A). “(ii) Definitions.— The terms ‘TAA-eligible individual’ and ‘TAA-related loss of coverage’ have the meanings given such terms in section 2205(b)(4).” . (d) Effective Date.— The amendments made by this section shall apply to plan years beginning after the date of the enactment of this Act. SEC. 1899E. CONTINUED QUALIFICATION OF FAMILY MEMBERS AFTER CERTAIN EVENTS. (a) In General.— Subsection (g) of section 35 26 USC 35. of such Code is amended by redesignating paragraph (9) as paragraph (10) and inserting after paragraph (8) the following new paragraph: “(9) Continued qualification of family members after certain events.— In the case of eligible coverage months beginning before January 1, 2011— “(A) Medicare eligibility.— In the case of any month which would be an eligible coverage month with respect to an eligible individual but for subsection (f)(2)(A), such month shall be treated as an eligible coverage month with respect to such eligible individual solely for purposes of determining the amount of the credit under this section with respect to any qualifying family members of such individual (and any advance payment of such credit under section 7527). This subparagraph shall only apply with respect to the first 24 months after such eligible individual is first entitled to the benefits described in subsection (f)(2)(A). “(B) Divorce.— In the case of the finalization of a divorce between an eligible individual and such individual’s spouse, such spouse shall be treated as an eligible individual for purposes of this section and section 7527 for a period of 24 months beginning with the date of such finalization, except that the only qualifying family members who may be taken into account with respect to such spouse are those individuals who were qualifying family members immediately before such finalization. “(C) Death.— In the case of the death of an eligible individual— “(i) any spouse of such individual (determined at the time of such death) shall be treated as an eligible individual for purposes of this section and section 7527 for a period of 24 months beginning with the date of such death, except that the only qualifying family members who may be taken into account with respect to such spouse are those individuals who were qualifying family members immediately before such death, and “(ii) any individual who was a qualifying family member of the decedent immediately before such death (or, in the case of an individual to whom paragraph (4) applies, the taxpayer to whom the deduction under section 151 is allowable) shall be treated as an eligible individual for purposes of this section and section 7527 for a period of 24 months beginning with the date of such death, except that in determining the amount of such credit only such qualifying family member may be taken into account.” . (b) Conforming Amendment.— Section 173(f) of the Workforce Investment Act of 1998 (29 U.S.C. 2918(f)) is amended by adding at the end the following: “(8) Continued qualification of family members after certain events.— In the case of eligible coverage months beginning before January 1, 2011— “(A) Medicare eligibility.— In the case of any month which would be an eligible coverage month with respect to an eligible individual but for paragraph (7)(B)(i), such month shall be treated as an eligible coverage month with respect to such eligible individual solely for purposes of determining the eligibility of qualifying family members of such individual under this subsection. Applicability. This subparagraph shall only apply with respect to the first 24 months after such eligible individual is first entitled to the benefits described in paragraph (7)(B)(i). “(B) Divorce.— In the case of the finalization of a divorce between an eligible individual and such individual’s spouse, such spouse shall be treated as an eligible individual for purposes of this subsection for a period of 24 months beginning with the date of such finalization, except that the only qualifying family members who may be taken into account with respect to such spouse are those individuals who were qualifying family members immediately before such finalization. “(C) Death.— In the case of the death of an eligible individual— “(i) any spouse of such individual (determined at the time of such death) shall be treated as an eligible individual for purposes of this subsection for a period of 24 months beginning with the date of such death, except that the only qualifying family members who may be taken into account with respect to such spouse are those individuals who were qualifying family members immediately before such death, and “(ii) any individual who was a qualifying family member of the decedent immediately before such death shall be treated as an eligible individual for purposes this subsection for a period of 24 months beginning with the date of such death, except that no qualifying family members may be taken into account with respect to such individual.” . (c) Effective Date.— The amendments made by this section shall apply to months beginning after December 31, 2009. SEC. 1899F. EXTENSION OF COBRA BENEFITS FOR CERTAIN TAA-ELIGIBLE INDIVIDUALS AND PBGC RECIPIENTS. (a) ERISA Amendments.— Section 602(2)(A) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1162(2)(A)) is amended— (1) by moving clause (v) to after clause (iv) and before the flush left sentence beginning with “In the case of a qualified beneficiary”; (2) by striking “In the case of a qualified beneficiary” and inserting the following: “(vi) Special rule for disability.— In the case of a qualified beneficiary” ; and (3) by redesignating clauses (v) and (vi), as amended by paragraphs (1) and (2), as clauses (vii) and (viii), respectively, and by inserting after clause (iv) the following new clauses: “(v) Special rule for pbgc recipients.— In the case of a qualifying event described in section 603(2) with respect to a covered employee who (as of such qualifying event) has a nonforfeitable right to a benefit any portion of which is to be paid by the Pension Benefit Guaranty Corporation under title IV, notwithstanding clause (i) or (ii), the date of the death of the covered employee, or in the case of the surviving spouse or dependent children of the covered employee, 24 months after the date of the death of the covered employee. The preceding sentence shall not require any period of coverage to extend beyond December 31, 2010. “(vi) Special rule for taa-eligible individuals.— In the case of a qualifying event described in section 603(2) with respect to a covered employee who is (as of the date that the period of coverage would, but for this clause or clause (vii), otherwise terminate under clause (i) or (ii)) a TAA-eligible individual (as defined in section 605(b)(4)(B)), the period of coverage shall not terminate by reason of clause (i) or (ii), as the case may be, before the later of the date specified in such clause or the date on which such individual ceases to be such a TAA-eligible individual. The preceding sentence shall not require any period of coverage to extend beyond December 31, 2010.” . (b) IRC Amendments.— Clause (i) of section 4980B(f)(2)(B) of the Internal Revenue Code of 1986 26 USC 4980B. is amended— (1) by striking “In the case of a qualified beneficiary” and inserting the following: “(VI) Special rule for disability.— In the case of a qualified beneficiary” , and (2) by redesignating subclauses (V) and (VI), as amended by paragraph (1), as subclauses (VII) and (VIII), respectively, and by inserting after clause (IV) the following new subclauses: “(V) Special rule for pbgc recipients.— In the case of a qualifying event described in paragraph (3)(B) with respect to a covered employee who (as of such qualifying event) has a nonforfeitable right to a benefit any portion of which is to be paid by the Pension Benefit Guaranty Corporation under title IV of the Employee Retirement Income Security Act of 1974, notwithstanding subclause (I) or (II), the date of the death of the covered employee, or in the case of the surviving spouse or dependent children of the covered employee, 24 months after the date of the death of the covered employee. The preceding sentence shall not require any period of coverage to extend beyond December 31, 2010. “(VI) Special rule for taa-eligible individuals.— In the case of a qualifying event described in paragraph (3)(B) with respect to a covered employee who is (as of the date that the period of coverage would, but for this subclause or subclause (VII), otherwise terminate under subclause (I) or (II)) a TAA-eligible individual (as defined in paragraph (5)(C)(iv)(II)), the period of coverage shall not terminate by reason of subclause (I) or (II), as the case may be, before the later of the date specified in such subclause or the date on which such individual ceases to be such a TAA-eligible individual. The preceding sentence shall not require any period of coverage to extend beyond December 31, 2010.” . (c) PHSA Amendments.— Section 2202(2)(A) of the Public Health Service Act (42 U.S.C. 300bb-2(2)(A)) is amended— (1) by striking “In the case of a qualified beneficiary” and inserting the following: “(v) Special rule for disability.— In the case of a qualified beneficiary” ; and (2) by redesignating clauses (iv) and (v), as amended by paragraph (1), as clauses (v) and (vi), respectively, and by inserting after clause (iii) the following new clause: “(iv) Special rule for taa-eligible individuals.— In the case of a qualifying event described in section 2203(2) with respect to a covered employee who is (as of the date that the period of coverage would, but for this clause or clause (v), otherwise terminate under clause (i) or (ii)) a TAA-eligible individual (as defined in section 2205(b)(4)(B)), the period of coverage shall not terminate by reason of clause (i) or (ii), as the case may be, before the later of the date specified in such clause or the date on which such individual ceases to be such a TAA-eligible individual. The preceding sentence shall not require any period of coverage to extend beyond December 31, 2010.” . (d) Effective Date.— The amendments made by this section shall apply to periods of coverage which would (without regard to the amendments made by this section) end on or after the date of the enactment of this Act. SEC. 1899G. ADDITION OF COVERAGE THROUGH VOLUNTARY EMPLOYEES’ BENEFICIARY ASSOCIATIONS. (a) In General.— Paragraph (1) of section 35(e) of the Internal Revenue Code of 1986 26 USC 35. is amended by adding at the end the following new subparagraph: “(K) In the case of eligible coverage months beginning before January 1, 2011, coverage under an employee benefit plan funded by a voluntary employees’ beneficiary association (as defined in section 501(c)(9)) established pursuant to an order of a bankruptcy court, or by agreement with an authorized representative, as provided in section 1114 of title 11, United States Code.” . (b) Effective Date.— The amendments made by this section shall apply to coverage months beginning after the date of the enactment of this Act. SEC. 1899H. NOTICE REQUIREMENTS. (a) In General.— Subsection (d) of section 7527 of the Internal Revenue Code of 1986 (relating to qualified health insurance costs credit eligibility certificate) is amended to read as follows: “(d) Qualified Health Insurance Costs Eligibility Certificate.— “(1) In general.— For purposes of this section, the term ‘qualified health insurance costs eligibility certificate’ means any written statement that an individual is an eligible individual (as defined in section 35(c)) if such statement provides such information as the Secretary may require for purposes of this section and— “(A) in the case of an eligible TAA recipient (as defined in section 35(c)(2)) or an eligible alternative TAA recipient (as defined in section 35(c)(3)), is certified by the Secretary of Labor (or by any other person or entity designated by the Secretary), or “(B) in the case of an eligible PBGC pension recipient (as defined in section 35(c)(4)), is certified by the Pension Benefit Guaranty Corporation (or by any other person or entity designated by the Secretary). “(2) Inclusion of certain information.— In the case of any statement described in paragraph (1) which is issued before January 1, 2011, such statement shall not be treated as a qualified health insurance costs credit eligibility certificate unless such statement includes— “(A) the name, address, and telephone number of the State office or offices responsible for providing the individual with assistance with enrollment in qualified health insurance (as defined in section 35(e)), “(B) a list of the coverage options that are treated as qualified health insurance (as so defined) by the State in which the individual resides, and “(C) in the case of a TAA-eligible individual (as defined in section 4980B(f)(5)(C)(iv)(II)), a statement informing the individual that the individual has 63 days from the date that is 7 days after the date of the issuance of such certificate to enroll in such insurance without a lapse in creditable coverage (as defined in section 9801(c)).” . (b) Effective Date.— The amendment made by this section shall apply to certificates issued after the date that is 6 months after the date of the enactment of this Act. SEC. 1899I. SURVEY AND REPORT ON ENHANCED HEALTH COVERAGE TAX CREDIT PROGRAM. (a) Survey.— (1) In general.— The Secretary of the Treasury shall conduct a biennial survey of eligible individuals (as defined in section 35(c) of the Internal Revenue Code of 1986) relating to the health coverage tax credit under section 35 of the Internal Revenue Code of 1986 (hereinafter in this section referred to as the “health coverage tax credit”). (2) Information obtained.— The survey conducted under subsection (a) shall obtain the following information: (A) HCTC participants.— In the case of eligible individuals receiving the health coverage tax credit (including individuals participating in the health coverage tax credit program under section 7527 of such Code, hereinafter in this section referred to as the “HCTC program”)— (i) demographic information of such individuals, including income and education levels, (ii) satisfaction of such individuals with the enrollment process in the HCTC program, (iii) satisfaction of such individuals with available health coverage options under the credit, including level of premiums, benefits, deductibles, cost-sharing requirements, and the adequacy of provider networks, and (iv) any other information that the Secretary determines is appropriate. (B) Non-HCTC participants.— In the case of eligible individuals not receiving the health coverage tax credit— (i) demographic information of each individual, including income and education levels, (ii) whether the individual was aware of the health coverage tax credit or the HCTC program, (iii) the reasons the individual has not enrolled in the HCTC program, including whether such reasons include the burden of the process of enrollment and the affordability of coverage, (iv) whether the individual has health insurance coverage, and, if so, the source of such coverage, and (v) any other information that the Secretary determines is appropriate. (3) Report.— Not later than December 31 of each year in which a survey is conducted under paragraph (1) (beginning in 2010), the Secretary of the Treasury shall report to the Committee on Finance and the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Ways and Means, the Committee on Education and Labor, and the Committee on Energy and Commerce of the House of Representatives the findings of the most recent survey conducted under paragraph (1). (b) Report.— Not later than October 1 of each year (beginning in 2010), the Secretary of the Treasury (after consultation with the Secretary of Health and Human Services, and, in the case of the information required under paragraph (7), the Secretary of Labor) shall report to the Committee on Finance and the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Ways and Means, the Committee on Education and Labor, and the Committee on Energy and Commerce of the House of Representatives the following information with respect to the most recent taxable year ending before such date: (1) In each State and nationally— (A) the total number of eligible individuals (as defined in section 35(c) of the Internal Revenue Code of 1986) and the number of eligible individuals receiving the health coverage tax credit, (B) the total number of such eligible individuals who receive an advance payment of the health coverage tax credit through the HCTC program, (C) the average length of the time period of the participation of eligible individuals in the HCTC program, and (D) the total number of participating eligible individuals in the HCTC program who are enrolled in each category of coverage as described in section 35(e)(1) of such Code, with respect to each category of eligible individuals described in section 35(c)(1) of such Code. (2) In each State and nationally, an analysis of— (A) the range of monthly health insurance premiums, for self-only coverage and for family coverage, for individuals receiving the health coverage tax credit, and (B) the average and median monthly health insurance premiums, for self-only coverage and for family coverage, for individuals receiving the health coverage tax credit, with respect to each category of coverage as described in section 35(e)(1) of such Code. (3) In each State and nationally, an analysis of the following information with respect to the health insurance coverage of individuals receiving the health coverage tax credit who are enrolled in coverage described in subparagraphs (B) through (H) of section 35(e)(1) of such Code: (A) Deductible amounts. (B) Other out-of-pocket cost-sharing amounts. (C) A description of any annual or lifetime limits on coverage or any other significant limits on coverage services, or benefits. The information required under this paragraph shall be reported with respect to each category of coverage described in such subparagraphs. (4) In each State and nationally, the gender and average age of eligible individuals (as defined in section 35(c) of such Code) who receive the health coverage tax credit, in each category of coverage described in section 35(e)(1) of such Code, with respect to each category of eligible individuals described in such section. (5) The steps taken by the Secretary of the Treasury to increase the participation rates in the HCTC program among eligible individuals, including outreach and enrollment activities. (6) The cost of administering the HCTC program by function, including the cost of subcontractors, and recommendations on ways to reduce administrative costs, including recommended statutory changes. (7) The number of States applying for and receiving national emergency grants under section 173(f) of the Workforce Investment Act of 1998 (29 U.S.C. 2918(f)), the activities funded by such grants on a State-by-State basis, and the time necessary for application approval of such grants. SEC. 1899J. AUTHORIZATION OF APPROPRIATIONS.   There is authorized to be appropriated $80,000,000 for the period of fiscal years 2009 through 2010 to implement the amendments made by, and the provisions of, sections 1899 through 1899I of this part. SEC. 1899K. EXTENSION OF NATIONAL EMERGENCY GRANTS. (a) In General.— Section 173(f) of the Workforce Investment Act of 1998 (29 U.S.C. 2918(f)), as amended by this Act, is amended— (1) by striking paragraph (1) and inserting the following new paragraph: “(1) Use of funds.— “(A) Health insurance coverage for eligible individuals in order to obtain qualified health insurance that has guaranteed issue and other consumer protections.— Funds made available to a State or entity under paragraph (4)(A) of subsection (a) may be used to provide an eligible individual described in paragraph (4)(C) and such individual’s qualifying family members with health insurance coverage for the 3-month period that immediately precedes the first eligible coverage month (as defined in section 35(b) of the Internal Revenue Code of 1986) in which such eligible individual and such individual’s qualifying family members are covered by qualified health insurance that meets the requirements described in clauses (i) through (v) of section 35(e)(2)(A) of the Internal Revenue Code of 1986 (or such longer minimum period as is necessary in order for such eligible individual and such individual’s qualifying family members to be covered by qualified health insurance that meets such requirements). “(B) Additional uses.— Funds made available to a State or entity under paragraph (4)(A) of subsection (a) may be used by the State or entity for the following: “(i) Health insurance coverage.— To assist an eligible individual and such individual’s qualifying family members with enrolling in health insurance coverage and qualified health insurance or paying premiums for such coverage or insurance. “(ii) Administrative expenses and start-up expenses to establish group health plan coverage options for qualified health insurance.— To pay the administrative expenses related to the enrollment of eligible individuals and such individuals’ qualifying family members in health insurance coverage and qualified health insurance, including— “(I) eligibility verification activities; “(II) the notification of eligible individuals of available health insurance and qualified health insurance options; “(III) processing qualified health insurance costs credit eligibility certificates provided for under section 7527 of the Internal Revenue Code of 1986; “(IV) providing assistance to eligible individuals in enrolling in health insurance coverage and qualified health insurance; “(V) the development or installation of necessary data management systems; and “(VI) any other expenses determined appropriate by the Secretary, including start-up costs and on going administrative expenses, in order for the State to treat the coverage described in subparagraphs (C) through (H) of section 35(e)(1) of the Internal Revenue Code of 1986 as qualified health insurance under that section. “(iii) Outreach.— To pay for outreach to eligible individuals to inform such individuals of available health insurance and qualified health insurance options, including outreach consisting of notice to eligible individuals of such options made available after the date of enactment of this clause and direct assistance to help potentially eligible individuals and such individual’s qualifying family members qualify and remain eligible for the credit established under section 35 of the Internal Revenue Code of 1986 and advance payment of such credit under section 7527 of such Code. “(iv) Bridge funding.— To assist potentially eligible individuals to purchase qualified health insurance coverage prior to issuance of a qualified health insurance costs credit eligibility certificate under section 7527 of the Internal Revenue Code of 1986 and commencement of advance payment, and receipt of expedited payment, under subsections (a) and (e), respectively, of that section. “(C) Rule of construction.— The inclusion of a permitted use under this paragraph shall not be construed as prohibiting a similar use of funds permitted under subsection (g).” ; and (2) by striking paragraph (2) and inserting the following new paragraph: “(2) Qualified health insurance.— For purposes of this subsection and subsection (g), the term ‘qualified health insurance’ has the meaning given that term in section 35(e) of the Internal Revenue Code of 1986.” . (b) Funding.— Section 174(c)(1) of the Workforce Investment Act of 1998 (29 U.S.C. 2919(c)(1)) is amended— (1) in the paragraph heading, by striking “Authorization and appropriation for fiscal year 2002” and inserting “Appropriations”; and (2) by striking subparagraph (A) and inserting the following new subparagraph: “(A) to carry out subsection (a)(4)(A) of section 173— “(i) $10,000,000 for fiscal year 2002; and “(ii) $150,000,000 for the period of fiscal years 2009 through 2010; and” . SEC. 1899L. GAO STUDY AND REPORT. (a) Study.— The Comptroller General of the United States shall conduct a study regarding the health insurance tax credit allowed under section 35 of the Internal Revenue Code of 1986. (b) Report.— Not later than March 1, 2010, the Comptroller General shall submit a report to Congress regarding the results of the study conducted under subsection (a). Such report shall include an analysis of— (1) the administrative costs— (A) of the Federal Government with respect to such credit and the advance payment of such credit under section 7527 of such Code, and (B) of providers of qualified health insurance with respect to providing such insurance to eligible individuals and their qualifying family members, (2) the health status and relative risk status of eligible individuals and qualifying family members covered under such insurance, (3) participation in such credit and the advance payment of such credit by eligible individuals and their qualifying family members, including the reasons why such individuals did or did not participate and the effect of the amendments made by this part on such participation, and (4) the extent to which eligible individuals and their qualifying family members— (A) obtained health insurance other than qualifying health insurance, or (B) went without health insurance coverage. (c) Access to Records.— For purposes of conducting the study required under this section, the Comptroller General and any of his duly authorized representatives shall have access to, and the right to examine and copy, all documents, records, and other recorded information— (1) within the possession or control of providers of qualified health insurance, and (2) determined by the Comptroller General (or any such representative) to be relevant to the study. The Comptroller General shall not disclose the identity of any provider of qualified health insurance or any eligible individual in making any information obtained under this section available to the public. (d) Definitions.— Any term which is defined in section 35 of the Internal Revenue Code of 1986 shall have the same meaning when used in this section.

   Effective date note
   Except as otherwise provided and subject to certain applicability provisions, amendment by Pub. L. 111–5 effective upon the expiration of the 90-day period beginning on Feb. 17, 2009, see section 1891 of Pub. L. 111–5, set out as a note under section 2271 of this title. Section 1893 of Pub. L. 111–5, formerly set out as a Termination Date of 2009 Amendment note preceding section 2271 of this title, which provided that, except as otherwise provided, amendment by Pub. L. 111–5 not applicable on or after Feb. 13, 2011, and that this section be applied and administered beginning Feb. 13, 2011, as if amendment by Pub. L. 111–5 had never been enacted, was repealed by Pub. L. 112–40, title II, § 201(a), Oct. 21, 2011, 125 Stat. 403, effective Oct. 21, 2011. See Codification note above.

8. 2011

   Trade Adjustment Assistance Extension Act of 2011

   Pub. L. 112–40 title II § 201(b) · 125 Stat. 403

   Changed · 19 U.S.C. § 2273

   Pub. L. 112–40, §§ 201(b), (c), 233, temporarily revived the provisions of this section, as in effect on Feb. 12, 2011. See Codification note above and 2009 Amendment and Effective and Termination Dates of 2011 Revival notes below

   Source evidence

   Code amendment note
   Pub. L. 112–40, §§ 201(b), (c), 233, temporarily revived the provisions of this section, as in effect on Feb. 12, 2011. See Codification note above and 2009 Amendment and Effective and Termination Dates of 2011 Revival notes below.

   Enacted provision · exact public law section
   (b) Applicability of Certain Provisions.— Except as otherwise provided in this subtitle, the provisions of chapters 2 through 6 of title II of the Trade Act of 1974, as in effect on February 12, 2011, and as amended by this subtitle, shall— (1) take effect on the date of the enactment of this Act; and (2) apply to petitions for certification filed under chapter 2, 3, or 6 of title II of the Trade Act of 1974 on or after such date of enactment.

   Effective date note
   Except as otherwise provided and subject to certain applicability provisions, amendment by Pub. L. 111–5 effective upon the expiration of the 90-day period beginning on Feb. 17, 2009, see section 1891 of Pub. L. 111–5, set out as a note under section 2271 of this title. Section 1893 of Pub. L. 111–5, formerly set out as a Termination Date of 2009 Amendment note preceding section 2271 of this title, which provided that, except as otherwise provided, amendment by Pub. L. 111–5 not applicable on or after Feb. 13, 2011, and that this section be applied and administered beginning Feb. 13, 2011, as if amendment by Pub. L. 111–5 had never been enacted, was repealed by Pub. L. 112–40, title II, § 201(a), Oct. 21, 2011, 125 Stat. 403, effective Oct. 21, 2011. See Codification note above.

9. 2015

   Trade Adjustment Assistance Reauthorization Act of 2015

   Pub. L. 114–27 title IV § 402(b) · 129 Stat. 362

   Changed · 19 U.S.C. § 2273

   Pub. L. 114–27, §§ 402(b), (c), 406, temporarily revived the provisions of this section, as in effect on Dec. 31, 2013. See Codification note above and 2011 Amendment and Effective and Termination Dates of 2015 Revival notes below

   Source evidence

   Code amendment note
   Pub. L. 114–27, §§ 402(b), (c), 406, temporarily revived the provisions of this section, as in effect on Dec. 31, 2013. See Codification note above and 2011 Amendment and Effective and Termination Dates of 2015 Revival notes below.

   Enacted provision · exact public law section
   (b) Applicability of Certain Provisions.— Except as otherwise provided in this title, the provisions of chapters 2 through 6 of title II of the Trade Act of 1974, as in effect on December 31, 2013, and as amended by this title, shall— (1) Effective date. take effect on the date of the enactment of this Act; and (2) apply to petitions for certification filed under chapter 2, 3, or 6 of title II of the Trade Act of 1974 on or after such date of enactment.

5 of 11 references resolved to an enrolled provision · 6 partial