The Matthias Chronicles

Thursday, October 2, 2008, 3:00 AM

H.R. 1424: Bailout Bill, Part 11

22 this section shall apply to dividends with respect to taxable
23 years of regulated investment companies beginning after
24 December 31, 2007.

                                270
 1   SEC. 207. STOCK IN RIC FOR PURPOSES OF DETERMINING

 2                    ESTATES OF NONRESIDENTS NOT CITIZENS.

 3       (a) IN GENERAL.--Paragraph (3) of section 2105(d)
 4 (relating to stock in a RIC) is amended by striking ``De-
 5 cember 31, 2007'' and inserting ``December 31, 2009''.
 6       (b) EFFECTIVE DATE.--The amendment made by
 7 this section shall apply to decedents dying after December
 8 31, 2007.
 9   SEC. 208. QUALIFIED INVESTMENT ENTITIES.

10       (a)     IN      GENERAL.--Clause     (ii)   of   section
11 897(h)(4)(A) (relating to termination) is amended by
12 striking ``December 31, 2007'' and inserting ``December
13 31, 2009''.
14       (b) EFFECTIVE DATE.--The amendment made by
15 subsection (a) shall take effect on January 1, 2008, except
16 that such amendment shall not apply to the application
17 of withholding requirements with respect to any payment
18 made on or before the date of the enactment of this Act.
19        TITLE III--EXTENSION OF
20       BUSINESS TAX PROVISIONS
21   SEC. 301. EXTENSION AND MODIFICATION OF RESEARCH

22                    CREDIT.

23       (a) EXTENSION.--
24             (1) IN     GENERAL.--Section   41(h) (relating to
25       termination) is amended by striking ``December 31,

                              271
 1       2007'' and inserting ``December 31, 2009'' in para-
 2       graph (1)(B).
 3             (2) CONFORMING     AMENDMENT.--Subparagraph

 4       (D) of section 45C(b)(1) (relating to special rule) is
 5       amended by striking ``after December 31, 2007''
 6       and inserting ``after December 31, 2009''.
 7       (b) TERMINATION     OF   ALTERNATIVE INCREMENTAL
 8 CREDIT.--Section 41(h) is amended by redesignating
 9 paragraph (2) as paragraph (3), and by inserting after
10 paragraph (1) the following new paragraph:
11             ``(2) TERMINATION    OF ALTERNATIVE INCRE-

12       MENTAL       CREDIT.--No   election under subsection
13       (c)(4) shall apply to taxable years beginning after
14       December 31, 2008.''.
15       (c) MODIFICATION     OF    ALTERNATIVE SIMPLIFIED
16 CREDIT.--Paragraph (5)(A) of section 41(c) (relating to
17 election of alternative simplified credit) is amended by
18 striking ``12 percent'' and inserting ``14 percent (12 per-
19 cent in the case of taxable years ending before January
20 1, 2009)''.
21       (d) TECHNICAL CORRECTION.--Paragraph (3) of sec-
22 tion 41(h) is amended to read as follows:
23             ``(2) COMPUTATION     FOR TAXABLE YEAR IN

24       WHICH CREDIT TERMINATES.--In          the case of any
25       taxable year with respect to which this section ap-

                                272
 1       plies to a number of days which is less than the total
 2       number of days in such taxable year--
 3                    ``(A) the amount determined under sub-
 4             section (c)(1)(B) with respect to such taxable
 5             year shall be the amount which bears the same
 6             ratio to such amount (determined without re-
 7             gard to this paragraph) as the number of days
 8             in such taxable year to which this section ap-
 9             plies bears to the total number of days in such
10             taxable year, and
11                    ``(B) for purposes of subsection (c)(5), the
12             average qualified research expenses for the pre-
13             ceding 3 taxable years shall be the amount
14             which bears the same ratio to such average
15             qualified research expenses (determined without
16             regard to this paragraph) as the number of
17             days in such taxable year to which this section
18             applies bears to the total number of days in
19             such taxable year.''.
20       (e) EFFECTIVE DATE.--
21             (1) IN   GENERAL.--Except     as provided in para-
22       graph (2), the amendments made by this section
23       shall apply to taxable years beginning after Decem-
24       ber 31, 2007.

                                     273
 1             (2) EXTENSION.--The amendments made by
 2       subsection (a) shall apply to amounts paid or in-
 3       curred after December 31, 2007.
 4   SEC. 302. NEW MARKETS TAX CREDIT.

 5       Subparagraph (D) of section 45D(f)(1) (relating to
 6 national limitation on amount of investments designated)
 7 is amended by striking ``and 2008'' and inserting ``2008,
 8 and 2009''.
 9   SEC. 303. SUBPART F EXCEPTION FOR ACTIVE FINANCING

10                    INCOME.

11       (a) EXEMPT INSURANCE INCOME.--Paragraph (10)
12 of section 953(e) (relating to application) is amended--
13             (1) by striking ``January 1, 2009'' and insert-
14       ing ``January 1, 2010'', and
15             (2) by striking ``December 31, 2008'' and in-
16       serting ``December 31, 2009''.
17       (b) EXCEPTION          TO   TREATMENT   AS   FOREIGN PER-
18   SONAL   HOLDING COMPANY INCOME.--Paragraph (9) of
19 section 954(h) (relating to application) is amended by
20 striking ``January 1, 2009'' and inserting ``January 1,
21 2010''.

                                  274
 1   SEC. 304. EXTENSION OF LOOK-THRU RULE FOR RELATED

 2                    CONTROLLED FOREIGN CORPORATIONS.

 3       (a) IN GENERAL.--Subparagraph (C) of section
 4 954(c)(6) (relating to application) is amended by striking
 5 ``January 1, 2009'' and inserting ``January 1, 2010''.
 6       (b) EFFECTIVE DATE.--The amendment made by
 7 this section shall apply to taxable years of foreign corpora-
 8 tions beginning after December 31, 2007, and to taxable
 9 years of United States shareholders with or within which
10 such taxable years of foreign corporations end.
11   SEC. 305. EXTENSION OF 15-YEAR STRAIGHT-LINE COST RE-

12                    COVERY FOR QUALIFIED LEASEHOLD IM-

13                    PROVEMENTS AND QUALIFIED RESTAURANT

14                    IMPROVEMENTS;     15-YEAR   STRAIGHT-LINE

15                    COST RECOVERY FOR CERTAIN IMPROVE-

16                    MENTS TO RETAIL SPACE.

17       (a) EXTENSION       OF   LEASEHOLD    AND   RESTAURANT
18 IMPROVEMENTS.--
19             (1) IN    GENERAL.--Clauses    (iv) and (v) of sec-
20       tion 168(e)(3)(E) (relating to 15-year property) are
21       each amended by striking ``January 1, 2008'' and
22       inserting ``January 1, 2010''.
23             (2) EFFECTIVE      DATE.--The   amendments made
24       by this subsection shall apply to property placed in
25       service after December 31, 2007.

                                 275
 1       (b) TREATMENT           TO    INCLUDE NEW CONSTRUC-
 2   TION.--

 3             (1) IN    GENERAL.--Paragraph       (7) of section
 4       168(e) (relating to classification of property) is
 5       amended to read as follows:
 6             ``(7) QUALIFIED        RESTAURANT PROPERTY.--

 7                    ``(A) IN   GENERAL.--The     term `qualified
 8             restaurant property' means any section 1250
 9             property which is--
10                        ``(i) a building, if such building is
11                    placed in service after December 31, 2008,
12                    and before January 1, 2010, or
13                        ``(ii) an improvement to a building,
14             if more than 50 percent of the building's square
15             footage is devoted to preparation of, and seat-
16             ing for on-premises consumption of, prepared
17             meals.
18                    ``(B) EXCLUSION     FROM BONUS DEPRECIA-

19             TION.--Property        described in this paragraph
20             shall not be considered qualified property for
21             purposes of subsection (k).''.
22             (2) EFFECTIVE      DATE.--The    amendment made
23       by this subsection shall apply to property placed in
24       service after December 31, 2008.

                                 276
 1       (c) RECOVERY PERIOD        FOR   DEPRECIATION      OF   CER-
 2   TAIN IMPROVEMENTS TO        RETAIL SPACE.--
 3             (1)     15-YEAR    RECOVERY     PERIOD.--Section

 4       168(e)(3)(E) (relating to 15-year property) is
 5       amended by striking ``and'' at the end of clause
 6       (vii), by striking the period at the end of clause (viii)
 7       and inserting ``, and'', and by adding at the end the
 8       following new clause:
 9                        ``(ix) any qualified retail improvement
10                    property placed in service after December
11                    31, 2008, and before January 1, 2010.''.
12             (2) QUALIFIED      RETAIL IMPROVEMENT PROP-

13       ERTY.--Section     168(e) is amended by adding at the
14       end the following new paragraph:
15             ``(8) QUALIFIED     RETAIL IMPROVEMENT PROP-

16       ERTY.--

17                    ``(A) IN   GENERAL.--The    term `qualified
18             retail improvement property' means any im-
19             provement to an interior portion of a building
20             which is nonresidential real property if--
21                        ``(i) such portion is open to the gen-
22                    eral public and is used in the retail trade
23                    or business of selling tangible personal
24                    property to the general public, and

                                 277
 1                         ``(ii) such improvement is placed in
 2                    service more than 3 years after the date
 3                    the building was first placed in service.
 4                    ``(B) IMPROVEMENTS      MADE BY OWNER.--

 5             In the case of an improvement made by the
 6             owner of such improvement, such improvement
 7             shall be qualified retail improvement property
 8             (if at all) only so long as such improvement is
 9             held by such owner. Rules similar to the rules
10             under paragraph (6)(B) shall apply for pur-
11             poses of the preceding sentence.
12                    ``(C) CERTAIN     IMPROVEMENTS       NOT     IN-

13             CLUDED.--Such       term shall not include any im-
14             provement for which the expenditure is attrib-
15             utable to--
16                         ``(i) the enlargement of the building,
17                         ``(ii) any elevator or escalator,
18                         ``(iii) any structural component bene-
19                    fitting a common area, or
20                         ``(iv) the internal structural frame-
21                    work of the building.
22                    ``(D) EXCLUSION    FROM BONUS DEPRECIA-

23             TION.--Property      described in this paragraph
24             shall not be considered qualified property for
25             purposes of subsection (k).

                                                          278
 1                                 ``(E) TERMINATION.--Such term shall not
 2                       include any improvement placed in service after
 3                       December 31, 2009.''.
 4                       (3) REQUIREMENT                               TO        USE         STRAIGHT          LINE

 5             METHOD.--Section                          168(b)(3) is amended by adding
 6             at the end the following new subparagraph:
 7                                 ``(I) Qualified retail improvement property
 8                       described in subsection (e)(8).''.
 9                       (4) ALTERNATIVE                              SYSTEM.--The                       table con-
10             tained in section 168(g)(3)(B) is amended by insert-
11             ing after the item relating to subparagraph (E)(viii)
12             the following new item:
     ``(E)(ix) ...........................................................................................      39''.


13                       (5) EFFECTIVE                      DATE.--The                   amendments made
14             by this subsection shall apply to property placed in
15             service after December 31, 2008.
16   SEC. 306. MODIFICATION OF TAX TREATMENT OF CERTAIN

17                              PAYMENTS TO CONTROLLING EXEMPT ORGA-

18                              NIZATIONS.

19             (a)          IN          GENERAL.--Clause                                 (iv)          of    section
20 512(b)(13)(E) (relating to termination) is amended by
21 striking ``December 31, 2007'' and inserting ``December
22 31, 2009''.
23             (b) EFFECTIVE DATE.--The amendment made by
24 this section shall apply to payments received or accrued
25 after December 31, 2007.

                                 279
 1   SEC. 307. BASIS ADJUSTMENT TO STOCK OF S CORPORA-

 2                    TIONS   MAKING   CHARITABLE     CONTRIBU-

 3                    TIONS OF PROPERTY.

 4       (a) IN GENERAL.--The last sentence of section
 5 1367(a)(2) (relating to decreases in basis) is amended by
 6 striking ``December 31, 2007'' and inserting ``December
 7 31, 2009''.
 8       (b) EFFECTIVE DATE.--The amendment made by
 9 this section shall apply to contributions made in taxable
10 years beginning after December 31, 2007.
11   SEC. 308. INCREASE IN LIMIT ON COVER OVER OF RUM EX-

12                    CISE TAX TO PUERTO RICO AND THE VIRGIN

13                    ISLANDS.

14       (a) IN GENERAL.--Paragraph (1) of section 7652(f)
15 is amended by striking ``January 1, 2008'' and inserting
16 ``January 1, 2010''.
17       (b) EFFECTIVE DATE.--The amendment made by
18 this section shall apply to distilled spirits brought into the
19 United States after December 31, 2007.
20   SEC. 309. EXTENSION OF ECONOMIC DEVELOPMENT CRED-

21                    IT FOR AMERICAN SAMOA.

22       (a) IN GENERAL.--Subsection (d) of section 119 of
23 division A of the Tax Relief and Health Care Act of 2006
24 is amended--
25             (1) by striking ``first two taxable years'' and in-
26       serting ``first 4 taxable years'', and

                                280
 1             (2) by striking ``January 1, 2008'' and insert-
 2       ing ``January 1, 2010''.
 3       (b) EFFECTIVE DATE.--The amendments made by
 4 this section shall apply to taxable years beginning after
 5 December 31, 2007.
 6   SEC. 310. EXTENSION OF MINE RESCUE TEAM TRAINING

 7                    CREDIT.

 8       Section 45N(e) (relating to termination) is amended
 9 by striking ``December 31, 2008'' and inserting ``Decem-
10 ber 31, 2009''.
11   SEC. 311. EXTENSION OF ELECTION TO EXPENSE AD-

12                    VANCED MINE SAFETY EQUIPMENT.

13       Section 179E(g) (relating to termination) is amended
14 by striking ``December 31, 2008'' and inserting ``Decem-
15 ber 31, 2009''.
16   SEC. 312. DEDUCTION ALLOWABLE WITH RESPECT TO IN-

17                    COME ATTRIBUTABLE TO DOMESTIC PRO-

18                    DUCTION ACTIVITIES IN PUERTO RICO.

19       (a) IN GENERAL.--Subparagraph (C) of section
20 199(d)(8) (relating to termination) is amended--
21             (1) by striking ``first 2 taxable years'' and in-
22       serting ``first 4 taxable years'', and
23             (2) by striking ``January 1, 2008'' and insert-
24       ing ``January 1, 2010''.

                                281
 1       (b) EFFECTIVE DATE.--The amendments made by
 2 this section shall apply to taxable years beginning after
 3 December 31, 2007.
 4   SEC. 313. QUALIFIED ZONE ACADEMY BONDS.

 5       (a) IN GENERAL.--Subpart I of part IV of sub-
 6 chapter A of chapter 1 is amended by adding at the end
 7 the following new section:
 8   ``SEC. 54E. QUALIFIED ZONE ACADEMY BONDS.

 9       ``(a) QUALIFIED ZONE ACADEMY BONDS.--For pur-
10 poses of this subchapter, the term `qualified zone academy
11 bond' means any bond issued as part of an issue if--
12             ``(1) 100 percent of the available project pro-
13       ceeds of such issue are to be used for a qualified
14       purpose with respect to a qualified zone academy es-
15       tablished by an eligible local education agency,
16             ``(2) the bond is issued by a State or local gov-
17       ernment within the jurisdiction of which such acad-
18       emy is located, and
19             ``(3) the issuer--
20                    ``(A) designates such bond for purposes of
21             this section,
22                    ``(B) certifies that it has written assur-
23             ances that the private business contribution re-
24             quirement of subsection (b) will be met with re-
25             spect to such academy, and

                                 282
 1                     ``(C) certifies that it has the written ap-
 2             proval of the eligible local education agency for
 3             such bond issuance.
 4       ``(b) PRIVATE BUSINESS CONTRIBUTION REQUIRE-
 5   MENT.--For       purposes of subsection (a), the private busi-
 6 ness contribution requirement of this subsection is met
 7 with respect to any issue if the eligible local education
 8 agency that established the qualified zone academy has
 9 written commitments from private entities to make quali-
10 fied contributions having a present value (as of the date
11 of issuance of the issue) of not less than 10 percent of
12 the proceeds of the issue.
13       ``(c) LIMITATION        ON    AMOUNT   OF   BONDS DES-
14   IGNATED.--

15             ``(1) NATIONAL      LIMITATION.--There     is a na-
16       tional zone academy bond limitation for each cal-
17       endar year. Such limitation is $400,000,000 for
18       2008 and 2009, and, except as provided in para-
19       graph (4), zero thereafter.
20             ``(2) ALLOCATION        OF LIMITATION.--The     na-
21       tional zone academy bond limitation for a calendar
22       year shall be allocated by the Secretary among the
23       States on the basis of their respective populations of
24       individuals below the poverty line (as defined by the
25       Office of Management and Budget). The limitation

                                 283
 1       amount allocated to a State under the preceding
 2       sentence shall be allocated by the State education
 3       agency to qualified zone academies within such
 4       State.
 5             ``(3) DESIGNATION       SUBJECT TO LIMITATION

 6       AMOUNT.--The       maximum aggregate face amount of
 7       bonds issued during any calendar year which may be
 8       designated under subsection (a) with respect to any
 9       qualified zone academy shall not exceed the limita-
10       tion amount allocated to such academy under para-
11       graph (2) for such calendar year.
12             ``(4) CARRYOVER     OF UNUSED LIMITATION.--

13                    ``(A) IN   GENERAL.--If   for any calendar
14             year--
15                        ``(i) the limitation amount for any
16                    State, exceeds
17                        ``(ii) the amount of bonds issued dur-
18                    ing such year which are designated under
19                    subsection (a) with respect to qualified
20                    zone academies within such State,
21             the limitation amount for such State for the fol-
22             lowing calendar year shall be increased by the
23             amount of such excess.
24                    ``(B) LIMITATION   ON CARRYOVER.--Any

25             carryforward of a limitation amount may be

                                284
 1             carried only to the first 2 years following the
 2             unused limitation year. For purposes of the pre-
 3             ceding sentence, a limitation amount shall be
 4             treated as used on a first-in first-out basis.
 5                    ``(C)   COORDINATION      WITH     SECTION

 6             1397E.--Any    carryover determined under sec-
 7             tion 1397E(e)(4) (relating to carryover of un-
 8             used limitation) with respect to any State to
 9             calendar year 2008 or 2009 shall be treated for
10             purposes of this section as a carryover with re-
11             spect to such State for such calendar year
12             under subparagraph (A), and the limitation of
13             subparagraph (B) shall apply to such carryover
14             taking into account the calendar years to which
15             such carryover relates.
16       ``(d) DEFINITIONS.--For purposes of this section--
17             ``(1) QUALIFIED     ZONE ACADEMY.--The           term
18       `qualified zone academy' means any public school (or
19       academic program within a public school) which is
20       established by and operated under the supervision of
21       an eligible local education agency to provide edu-
22       cation or training below the postsecondary level if--
23                    ``(A) such public school or program (as the
24             case may be) is designed in cooperation with
25             business to enhance the academic curriculum,

                                285
 1             increase graduation and employment rates, and
 2             better prepare students for the rigors of college
 3             and the increasingly complex workforce,
 4                    ``(B) students in such public school or pro-
 5             gram (as the case may be) will be subject to the
 6             same academic standards and assessments as
 7             other students educated by the eligible local
 8             education agency,
 9                    ``(C) the comprehensive education plan of
10             such public school or program is approved by
11             the eligible local education agency, and
12                    ``(D)(i) such public school is located in an
13             empowerment zone or enterprise community
14             (including any such zone or community des-
15             ignated after the date of the enactment of this
16             section), or
17                    ``(ii) there is a reasonable expectation (as
18             of the date of issuance of the bonds) that at
19             least 35 percent of the students attending such
20             school or participating in such program (as the
21             case may be) will be eligible for free or reduced-
22             cost lunches under the school lunch program es-
23             tablished under the National School Lunch Act.
24             ``(2) ELIGIBLE     LOCAL EDUCATION AGENCY.--

25       For purposes of this section, the term `eligible local

                                286
 1       education agency' means any local educational agen-
 2       cy as defined in section 9101 of the Elementary and
 3       Secondary Education Act of 1965.
 4             ``(3) QUALIFIED     PURPOSE.--The     term `quali-
 5       fied purpose' means, with respect to any qualified
 6       zone academy--
 7                    ``(A) rehabilitating or repairing the public
 8             school facility in which the academy is estab-
 9             lished,
10                    ``(B) providing equipment for use at such
11             academy,
12                    ``(C) developing course materials for edu-
13             cation to be provided at such academy, and
14                    ``(D) training teachers and other school
15             personnel in such academy.
16             ``(4) QUALIFIED      CONTRIBUTIONS.--The      term
17       `qualified contribution' means any contribution (of a
18       type and quality acceptable to the eligible local edu-
19       cation agency) of--
20                    ``(A) equipment for use in the qualified
21             zone academy (including state-of-the-art tech-
22             nology and vocational equipment),
23                    ``(B) technical assistance in developing
24             curriculum or in training teachers in order to

                                 287
 1             promote appropriate market driven technology
 2             in the classroom,
 3                    ``(C) services of employees as volunteer
 4             mentors,
 5                    ``(D) internships, field trips, or other edu-
 6             cational opportunities outside the academy for
 7             students, or
 8                    ``(E) any other property or service speci-
 9             fied by the eligible local education agency.''.
10       (b) CONFORMING AMENDMENTS.--
11             (1) Paragraph (1) of section 54A(d), as amend-
12       ed by this Act, is amended by striking ``or'' at the
13       end of subparagraph (B), by inserting ``or'' at the
14       end of subparagraph (C), and by inserting after sub-
15       paragraph (C) the following new subparagraph:
16                    ``(D) a qualified zone academy bond,''.
17             (2) Subparagraph (C) of section 54A(d)(2), as
18       amended by this Act, is amended by striking ``and''
19       at the end of clause (ii), by striking the period at
20       the end of clause (iii) and inserting ``, and'', and by
21       adding at the end the following new clause:
22                         ``(iv) in the case of a qualified zone
23                    academy bond, a purpose specified in sec-
24                    tion 54E(a)(1).''.

                                       288
 1                (3) Section 1397E is amended by adding at the
 2         end the following new subsection:
 3         ``(m) TERMINATION.--This section shall not apply to
 4 any obligation issued after the date of the enactment of
 5 the Tax Extenders and Alternative Minimum Tax Relief
 6 Act of 2008.''.
 7                (4) The table of sections for subpart I of part
 8         IV of subchapter A of chapter 1 is amended by add-
 9         ing at the end the following new item:
     ``Sec. 54E. Qualified zone academy bonds.''.

10         (c) EFFECTIVE DATE.--The amendments made by
11 this section shall apply to obligations issued after the date
12 of the enactment of this Act.
13   SEC. 314. INDIAN EMPLOYMENT CREDIT.

14         (a) IN GENERAL.--Subsection (f) of section 45A (re-
15 lating to termination) is amended by striking ``December
16 31, 2007'' and inserting ``December 31, 2009''.
17         (b) EFFECTIVE DATE.--The amendment made by
18 this section shall apply to taxable years beginning after
19 December 31, 2007.
20   SEC. 315. ACCELERATED DEPRECIATION FOR BUSINESS

21                    PROPERTY ON INDIAN RESERVATIONS.

22         (a) IN GENERAL.--Paragraph (8) of section 168(j)
23 (relating to termination) is amended by striking ``Decem-
24 ber 31, 2007'' and inserting ``December 31, 2009''.

                                 289
 1       (b) EFFECTIVE DATE.--The amendment made by
 2 this section shall apply to property placed in service after
 3 December 31, 2007.
 4   SEC. 316. RAILROAD TRACK MAINTENANCE.

 5       (a) IN GENERAL.--Subsection (f) of section 45G (re-
 6 lating to application of section) is amended by striking
 7 ``January 1, 2008'' and inserting ``January 1, 2010''.
 8       (b) CREDIT ALLOWED AGAINST ALTERNATIVE MIN-
 9   IMUM   TAX.--Subparagraph (B) of section 38(c)(4), as
10 amended by this Act, is amended--
11             (1) by redesignating clauses (v), (vi), and (vii)
12       as clauses (vi), (vii), and (viii), respectively, and
13             (2) by inserting after clause (iv) the following
14       new clause:
15                         ``(v) the credit determined under sec-
16                    tion 45G,''.
17       (c) EFFECTIVE DATES.--
18             (1) The amendment made by subsection (a)
19       shall apply to expenditures paid or incurred during
20       taxable years beginning after December 31, 2007.
21             (2) The amendments made by subsection (b)
22       shall apply to credits determined under section 45G
23       of the Internal Revenue Code of 1986 in taxable
24       years beginning after December 31, 2007, and to
25       carrybacks of such credits.

                                290
 1   SEC. 317. SEVEN-YEAR COST RECOVERY PERIOD FOR MO-

 2                    TORSPORTS RACING TRACK FACILITY.

 3       (a) IN GENERAL.--Subparagraph (D) of section
 4 168(i)(15) (relating to termination) is amended by strik-
 5 ing ``December 31, 2007'' and inserting ``December 31,
 6 2009''.
 7       (b) EFFECTIVE DATE.--The amendment made by
 8 this section shall apply to property placed in service after
 9 December 31, 2007.
10   SEC. 318. EXPENSING OF ENVIRONMENTAL REMEDIATION

11                    COSTS.

12       (a) IN GENERAL.--Subsection (h) of section 198 (re-
13 lating to termination) is amended by striking ``December
14 31, 2007'' and inserting ``December 31, 2009''.
15       (b) EFFECTIVE DATE.--The amendment made by
16 this section shall apply to expenditures paid or incurred
17 after December 31, 2007.
18   SEC. 319. EXTENSION OF WORK OPPORTUNITY TAX CREDIT

19                    FOR HURRICANE KATRINA EMPLOYEES.

20       (a) IN GENERAL.--Paragraph (1) of section 201(b)
21 of the Katrina Emergency Tax Relief Act of 2005 is
22 amended by striking ``2-year'' and inserting ``4-year''.
23       (b) EFFECTIVE DATE.--The amendment made by
24 subsection (a) shall apply to individuals hired after August
25 27, 2007.

                                291
 1   SEC. 320. EXTENSION OF INCREASED REHABILITATION

 2                    CREDIT FOR STRUCTURES IN THE GULF OP-

 3                    PORTUNITY ZONE.

 4       (a) IN GENERAL.--Subsection (h) of section 1400N
 5 is amended by striking ``December 31, 2008'' and insert-
 6 ing ``December 31, 2009''.
 7       (b) EFFECTIVE DATE.--The amendment made by
 8 this section shall apply to expenditures paid or incurred
 9 after the date of the enactment of this Act.
10   SEC. 321. ENHANCED DEDUCTION FOR QUALIFIED COM-

11                    PUTER CONTRIBUTIONS.

12       (a) IN GENERAL.--Subparagraph (G) of section
13 170(e)(6) is amended by striking ``December 31, 2007''
14 and inserting ``December 31, 2009''.
15       (b) EFFECTIVE DATE.--The amendment made by
16 this section shall apply to contributions made during tax-
17 able years beginning after December 31, 2007.
18   SEC. 322. TAX INCENTIVES FOR INVESTMENT IN THE DIS-

19                    TRICT OF COLUMBIA.

20       (a) DESIGNATION OF ZONE.--
21             (1) IN     GENERAL.--Subsection    (f) of section
22       1400 is amended by striking ``2007'' both places it
23       appears and inserting ``2009''.
24             (2) EFFECTIVE     DATE.--The   amendments made
25       by this subsection shall apply to periods beginning
26       after December 31, 2007.

                                 292
 1       (b)     TAX-EXEMPT           ECONOMIC      DEVELOPMENT
 2 BONDS.--
 3             (1) IN     GENERAL.--Subsection      (b) of section
 4       1400A is amended by striking ``2007'' and inserting
 5       ``2009''.
 6             (2) EFFECTIVE      DATE.--The     amendment made
 7       by this subsection shall apply to bonds issued after
 8       December 31, 2007.
 9       (c) ZERO PERCENT CAPITAL GAINS RATE.--
10             (1) IN     GENERAL.--Subsection      (b) of section
11       1400B is amended by striking ``2008'' each place it
12       appears and inserting ``2010''.
13             (2) CONFORMING         AMENDMENTS.--

14                    (A) Section 1400B(e)(2) is amended--
15                         (i) by striking ``2012'' and inserting
16                    ``2014'', and
17                         (ii) by striking ``2012'' in the heading
18                    thereof and inserting ``2014''.
19                    (B) Section 1400B(g)(2) is amended by
20             striking ``2012'' and inserting ``2014''.
21                    (C) Section 1400F(d) is amended by strik-
22             ing ``2012'' and inserting ``2014''.
23             (3) EFFECTIVE      DATES.--

                                  293
 1                     (A) EXTENSION.--The amendments made
 2             by paragraph (1) shall apply to acquisitions
 3             after December 31, 2007.
 4                     (B)    CONFORMING     AMENDMENTS.--The

 5             amendments made by paragraph (2) shall take
 6             effect on the date of the enactment of this Act.
 7       (d) FIRST-TIME HOMEBUYER CREDIT.--
 8             (1) IN        GENERAL.--Subsection   (i) of section
 9       1400C is amended by striking ``2008'' and inserting
10       ``2010''.
11             (2) EFFECTIVE       DATE.--The    amendment made
12       by this subsection shall apply to property purchased
13       after December 31, 2007.
14   SEC. 323. ENHANCED CHARITABLE DEDUCTIONS FOR CON-

15                    TRIBUTIONS OF FOOD INVENTORY.

16       (a) INCREASED AMOUNT OF DEDUCTION.--
17             (1) IN         GENERAL.--Clause   (iv) of section
18       170(e)(3)(C) (relating to termination) is amended by
19       striking ``December 31, 2007'' and inserting ``De-
20       cember 31, 2009''.
21             (2) EFFECTIVE       DATE.--The    amendment made
22       by this subsection shall apply to contributions made
23       after December 31, 2007.
24       (b) TEMPORARY SUSPENSION           OF   LIMITATIONS   ON

25 CHARITABLE CONTRIBUTIONS.--

                                 294
 1             (1) IN     GENERAL.--Section   170(b) is amended
 2       by adding at the end the following new paragraph:
 3             ``(3) TEMPORARY      SUSPENSION OF LIMITATIONS

 4       ON CHARITABLE CONTRIBUTIONS.--In           the case of a
 5       qualified farmer or rancher (as defined in paragraph
 6       (1)(E)(v)), any charitable contribution of food--
 7                     ``(A) to which subsection (e)(3)(C) applies
 8             (without regard to clause (ii) thereof), and
 9                     ``(B) which is made during the period be-
10             ginning on the date of the enactment of this
11             paragraph and before January 1, 2009,
12       shall be treated for purposes of paragraph (1)(E) or
13       (2)(B), whichever is applicable, as if it were a quali-
14       fied conservation contribution which is made by a
15       qualified farmer or rancher and which otherwise
16       meets the requirements of such paragraph.''.
17             (2) EFFECTIVE      DATE.--The    amendment made
18       by this subsection shall apply to taxable years end-
19       ing after the date of the enactment of this Act.
20   SEC. 324. EXTENSION OF ENHANCED CHARITABLE DEDUC-

21                    TION FOR CONTRIBUTIONS OF BOOK INVEN-

22                    TORY.

23       (a) EXTENSION.--Clause (iv) of section 170(e)(3)(D)
24 (relating to termination) is amended by striking ``Decem-
25 ber 31, 2007'' and inserting ``December 31, 2009''.

                                295
 1       (b) CLERICAL AMENDMENT.--Clause (iii) of section
 2 170(e)(3)(D) (relating to certification by donee) is amend-
 3 ed by inserting ``of books'' after ``to any contribution''.
 4       (c) EFFECTIVE DATE.--The amendments made by
 5 this section shall apply to contributions made after De-
 6 cember 31, 2007.
 7   SEC. 325. EXTENSION AND MODIFICATION OF DUTY SUS-

 8                    PENSION ON WOOL PRODUCTS; WOOL RE-

 9                    SEARCH FUND; WOOL DUTY REFUNDS.

10       (a) EXTENSION        OF   TEMPORARY DUTY REDUC-
11   TIONS.--Each       of the following headings of the Har-
12 monized Tariff Schedule of the United States is amended
13 by striking the date in the effective period column and
14 inserting ``12/31/2014'':
15             (1) Heading 9902.51.11 (relating to fabrics of
16       worsted wool).
17             (2) Heading 9902.51.13 (relating to yarn of
18       combed wool).