[House Report 111-426]
[From the U.S. Government Publishing Office]
111th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 111-426
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PROVIDING FOR CONSIDERATION OF THE SENATE AMENDMENT TO THE BILL (H.R.
2847) MAKING APPROPRIATIONS FOR THE DEPARTMENTS OF COMMERCE AND
JUSTICE, AND SCIENCE, AND RELATED AGENCIES FOR THE FISCAL YEAR ENDING
SEPTEMBER 30, 2010, AND FOR OTHER PURPOSES
_______
March 4, 2010.--Referred to the House Calendar and ordered to be
printed
_______
Ms. Matsui, from the Committee on Rules, submitted the following
R E P O R T
[To accompany H. Res. 1137]
The Committee on Rules, having had under consideration
House Resolution 1137, by a nonrecord vote, report the same to
the House with the recommendation that the resolution be
adopted.
SUMMARY OF PROVISIONS OF THE RESOLUTION
The resolution provides for the consideration of the Senate
amendment to H.R. 2847, the Hiring Incentives to Restore
Employment Act (originally making appropriations for the
Departments of Commerce and Justice, and Science, and Related
Agencies for the fiscal year ending September 30, 2010, and for
other purposes). The resolution makes in order a motion offered
by the chair of the Committee on Ways and Means that the House
concur in the Senate amendment to the House amendment to the
Senate amendment with the amendment printed in this report. The
resolution waives all points of order against consideration of
the motion except those arising under clause 10 of rule XXI.
The resolution provides that the Senate amendment and the
motion shall be considered as read. The resolution provides one
hour of debate on the motion equally divided and controlled by
the chair and ranking minority member of the Committee on Ways
and Means.
EXPLANATION OF WAIVERS
The waiver of all points of order against consideration of
the motion (except those arising under clause 10 of rule XXI)
includes a waiver of clause 6 of rule XVI (prohibiting
amendments in the third degree).
COMMITTEE VOTES
The results of each record vote on an amendment or motion
to report, together with the names of those voting for and
against, are printed below:
Rules Committee record vote No. 325
Date: March 4, 2010.
Measure: Senate amendment to H.R. 2847.
Motion by: Mr. Dreier.
Summary of motion: To make in order an amendment, if
offered by the Republican Leader or his designee.
Results: Defeated 3-7.
Vote by Members: McGovern--Nay; Hastings (FL)--Nay;
Matsui--Nay; Cardoza--Nay; Arcuri--Nay; Pingree--Nay; Dreier--
Yea; Diaz-Balart, L.--Yea; Foxx--Yea; Slaughter--Nay.
SUMMARY OF HOUSE AMENDMENT MADE IN ORDER
The amendment makes technical corrections to improve the
effectiveness and administrability of incentives for hiring and
retaining new employees, and extends these benefits to
businesses in U.S. territories and possessions; restores the
full value of the direct payment option for certain tax credit
bond programs; delays the effective date of the worldwide
allocation of interest provision for an additional year
(through 2020) to ensure that the cost of the bill is fully
offset; and provides for continuation and enforcement of
disadvantaged, minority, and women-owned business enterprise
contracting requirements for surface transportation projects.
TEXT OF HOUSE AMENDMENT MADE IN ORDER
Concur in the Senate amendment (hereinafter referred to as
the ``pending Senate amendment'') to the House amendment to the
Senate amendment to H.R. 2847 with the following amendment:
(1) In section 101 of the matter proposed to be
inserted by the pending Senate amendment--
(A) In section 3111(d) of the Internal
Revenue Code of 1986, as proposed to be added
by subsection (a) of such section 101, add at
the end the following new paragraph:
``(5) Special rule for first calendar quarter of
2010.--
``(A) Nonapplication of exemption during
first quarter.--Paragraph (1) shall not apply
with respect to wages paid during the first
calendar quarter of 2010.
``(B) Crediting of first quarter exemption
during second quarter.--The amount by which the
tax imposed under subsection (a) would (but for
subparagraph (A)) have been reduced with
respect to wages paid by a qualified employer
during the first calendar quarter of 2010 shall
be treated as a payment against the tax imposed
under subsection (a) with respect to the
qualified employer for the second calendar
quarter of 2010 which is made on the date that
such tax is due.''.
(B) Strike subsection (d) of such section 101
and insert the following new subsections:
(d) Application To Railroad Retirement Taxes.--
(1) In general.--Section 3221 of the Internal Revenue
Code of 1986 is amended by redesignating subsection (c)
as subsection (d) and by inserting after subsection (b)
the following new subsection:
``(c) Special Rate for Certain Individuals Hired in 2010.--
``(1) In general.--In the case of compensation paid
by a qualified employer during the period beginning on
the day after the date of the enactment of this
subsection and ending on December 31, 2010, with
respect to having a qualified individual in the
employer's employ for services rendered to such
qualified employer, the applicable percentage under
subsection (a) shall be equal to the rate of tax in
effect under section 3111(b) for the calendar year.
``(2) Qualified employer.--The term `qualified
employer' means any employer other than the United
States, any State, or any political subdivision
thereof, or any instrumentality of the foregoing.
``(3) Qualified individual.--For purposes of this
subsection, the term `qualified individual' means any
individual who--
``(A) begins employment with a qualified
employer after February 3, 2010, and before
January 1, 2011,
``(B) certifies by signed affidavit, under
penalties of perjury, that such individual has
not been employed for more than 40 hours during
the 60-day period ending on the date such
individual begins such employment,
``(C) is not employed by the qualified
employer to replace another employee of such
employer unless such other employee separated
from employment voluntarily or for cause, and
``(D) is not an individual described in
section 51(i)(1) (applied by substituting
`qualified employer' for `taxpayer' each place
it appears).
``(4) Election.--A qualified employer may elect to
have this subsection not apply. Such election shall be
made in such manner as the Secretary may require.
``(5) Special rule for first calendar quarter of
2010.--
``(A) Nonapplication of exemption during
first quarter.--Paragraph (1) shall not apply
with respect to compensation paid during the
first calendar quarter of 2010.
``(B) Crediting of first quarter exemption
during second quarter.--The amount by which the
tax imposed under subsection (a) would (but for
subparagraph (A)) have been reduced with
respect to compensation paid by a qualified
employer during the first calendar quarter of
2010 shall be treated as a payment against the
tax imposed under subsection (a) with respect
to the qualified employer for the second
calendar quarter of 2010 which is made on the
date that such tax is due.''.
(2) Transfers to social security equivalent benefit
account.--There are hereby appropriated to the Social
Security Equivalent Benefit Account established under
section 15A(a) of the Railroad Retirement Act of 1974
(45 U.S.C. 231n-1(a)) amounts equal to the reduction in
revenues to the Treasury by reason of the amendments
made by paragraph (1). Amounts appropriated by the
preceding sentence shall be transferred from the
general fund at such times and in such manner as to
replicate to the extent possible the transfers which
would have occurred to such Account had such amendments
not been enacted.
(e) Effective Dates.--
(1) In general.--Except as provided in paragraph (2),
the amendments made by this subsection shall apply to
wages paid after the date of the enactment of this Act.
(2) Railroad retirement taxes.--The amendments made
by subsection (d) shall apply to compensation paid
after the date of the enactment of this Act.
(2) In section 102 of the matter proposed to be
inserted by the pending Senate amendment--
(A) Strike subsection (a) of such section 102
and insert the following new subsection:
(a) In General.--In the case of any taxable year ending after
the date of the enactment of this Act, the current year
business credit determined under section 38(b) of the Internal
Revenue Code of 1986 for such taxable year shall be increased,
with respect to each retained worker with respect to which
subsection (b)(2) is first satisfied during such taxable year,
by the lesser of--
(1) $1,000, or
(2) 6.2 percent of the wages (as defined in section
3401(a)) paid by the taxpayer to such retained worker
during the 52 consecutive week period referred to in
subsection (b)(2).
(B) In subsection (b) of such section 102,
insert ``or section 3221(c)(3)'' after
``section 3111(d)(3)''.
(C) In subsection (b)(3) of such section 102,
insert ``(as defined in section 3401(a))''
after ``wages'' the first place it appears
therein.
(D) At the end of such section 102, add the
following new subsection:
(d) Treatment of Possessions.--
(1) Payments to possessions.--
(A) Mirror code possessions.--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 this section
(other than this subsection). 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 this section (other than this
subsection) 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 increase in the credit
determined under section 38(b) of the Internal Revenue
Code of 1986 against United States income taxes for any
taxable year determined under subsection (a) shall be
taken into account with respect to any person--
(A) to whom a credit is allowed against taxes
imposed by the possession by reason of 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, rules similar to the rules of section
1001(b)(3)(C) of the American Recovery and
Reinvestment Tax Act of 2009 shall apply.
(3) In section 301 of the matter proposed to be
inserted by the pending Senate amendment--
(A) In section 6431(f)(1) of the Internal
Revenue Code of 1986, as proposed to be added
by subsection (a) of such section 301, strike
subparagraph (C) and insert the following new
subparagraph:
``(C) the amount of the payment determined
under subsection (b) with respect to any
interest payment due under such bond shall be
equal to the lesser of--
``(i) the amount of interest payable
under such bond on such date, or
``(ii) the amount of interest which
would have been payable under such bond
on such date if such interest were
determined at the applicable credit
rate determined under section
54A(b)(3),''.
(B) In section 6431(f) of the Internal
Revenue Code of 1986, as proposed to be added
by subsection (a) of such section 301, strike
paragraph (2) and insert the following new
paragraphs:
``(2) Special rule for new clean renewable energy
bonds and qualified energy conservation bonds.--In the
case of any specified tax credit bond described in
clause (i) or (ii) of paragraph (3)(A), the amount
determined under paragraph (1)(C)(ii) shall be 70
percent of the amount so determined without regard to
this paragraph and sections 54C(b) and 54D(b).
``(3) Specified tax credit bond.--For purposes of
this subsection, the term ``specified tax credit bond''
means any qualified tax credit bond (as defined in
section 54A(d)) if--
``(A) such bond is--
``(i) a new clean renewable energy
bond (as defined in section 54C),
``(ii) a qualified energy
conservation bond (as defined in
section 54D),
``(iii) a qualified zone academy bond
(as defined in section 54E), or
``(iv) a qualified school
construction bond (as defined in
section 54F), and
``(B) the issuer of such bond makes an
irrevocable election to have this subsection
apply.''.
(4) At the end title IV of the matter proposed to be
inserted by the pending Senate amendment, add the
following:
Subtitle E--Disadvantaged Business Enterprises
SEC. 451. DISADVANTAGED BUSINESS ENTERPRISES.
(a) Definitions.--In this section, the following definitions
apply:
(1) Small business concern.-- The term ``small
business concern'' has the meaning that term has under
section 3 of the Small Business Act (15 U.S.C. 632),
except that the term shall not include any concern or
group of concerns controlled by the same socially and
economically disadvantaged individual or individuals
which has average annual gross receipts over the
preceding 3 fiscal years in excess of $22,410,000, as
adjusted annually by the Secretary of Transportation
for inflation.
(2) Socially and economically disadvantaged
individuals.--The term ``socially and economically
disadvantaged individuals'' has the meaning that term
has under section 8(d) of the Small Business Act (15
U.S.C. 637(d)) and relevant subcontracting regulations
issued pursuant to that Act, except that women shall be
presumed to be socially and economically disadvantaged
individuals for purposes of this section.
(b) General Rule.--Except to the extent that the Secretary of
Transportation determines otherwise, not less than 10 percent
of the amounts made available for any program under titles I,
III, and V of SAFETEA-LU (Public Law 109-59), subtitles A and C
of this title, and section 403 of title 23, United States Code,
shall be expended through small business concerns owned and
controlled by socially and economically disadvantaged
individuals.
(c) Annual Listing of Disadvantaged Business Enterprises.--
Each State shall annually--
(1) survey and compile a list of the small business
concerns referred to in subsection (a) and the location
of the concerns in the State; and
(2) notify the Secretary of Transportation, in
writing, of the percentage of the concerns that are
controlled by women, by socially and economically
disadvantaged individuals (other than women), and by
individuals who are women and are otherwise socially
and economically disadvantaged individuals.
(d) Uniform Certification.--The Secretary of Transportation
shall establish minimum uniform criteria for State governments
to use in certifying whether a concern qualifies for purposes
of this section. The minimum uniform criteria shall include,
but not be limited to, on-site visits, personal interviews,
licenses, analysis of stock ownership, listing of equipment,
analysis of bonding capacity, listing of work completed, resume
of principal owners, financial capacity, and type of work
preferred.
(e) Compliance With Court Orders.--Nothing in this section
limits the eligibility of an entity or person to receive funds
made available under titles I, III, and V of SAFETEA-LU (Public
Law 109-59), subtitles A and C of this title, and section 403
of title 23, United States Code, if the entity or person is
prevented, in whole or in part, from complying with subsection
(b) because a Federal court issues a final order in which the
court finds that the requirement of subsection (b), or the
program established under subsection (b), is unconstitutional.
(5) In section 551(a) of the matter proposed to be
inserted by the pending Senate amendment, strike
``December 31, 2019'' and insert ``December 31, 2020''.
(6) At the end of title V of the matter proposed to
be inserted by the pending Senate amendment, add the
following new subtitle:
Subtitle C--Budgetary Provisions
SEC. 561. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
Notwithstanding section 6655 of the Internal Revenue Code of
1986, in the case of a corporation with assets of not less than
$1,000,000,000 (determined as of the end of the preceding
taxable year)--
(1) the percentage under paragraph (1) of section
202(b) of the Corporate Estimated Tax Shift Act of 2009
in effect on the date of the enactment of this Act is
increased by 23 percentage points,
(2) the amount of any required installment of
corporate estimated tax which is otherwise due in July,
August, or September of 2015 shall be 121.5 percent of
such amount,
(3) the amount of any required installment of
corporate estimated tax which is otherwise due in July,
August, or September of 2019 shall be 106.5 percent of
such amount, and
(4) the amount of the next required installment after
an installment referred to in paragraph (2) or (3)
shall be appropriately reduced to reflect the amount of
the increase by reason of such paragraph.
SEC. 562. PAYGO COMPLIANCE.
The budgetary effects of this Act, for purposes of complying
with the Statutory Pay-As-You-Go-Act of 2010, shall be
determined by reference to the latest statement titled
``Budgetary Effects of PAYGO Legislation'' for this Act,
jointly submitted for printing in the Congressional Record by
the Chairman of the House and Senate Budget Committees,
provided that such statement has been submitted prior to the
vote on passage in the House acting first on this conference
report or amendments between the Houses.