H.R. 1

[119th Congress Public Law 21]
[From the U.S. Government Publishing Office]

[[Page 71]]

[[Page 139 STAT. 72]]

Public Law 119-21
119th Congress

An Act

To provide for reconciliation pursuant to title II of H. Con. Res. 
14. <<NOTE: July 4, 2025 - [H.R. 1]>> 

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
SECTION 1. TABLE OF CONTENTS.

The table of contents of this Act is as follows:

Sec. 1. Table of contents.

TITLE I--COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY

Subtitle A--Nutrition

Sec. 10101. Re-evaluation of thrifty food plan.
Sec. 10102. Modifications to SNAP work requirements for able-bodied 
adults.
Sec. 10103. Availability of standard utility allowances based on receipt 
of energy assistance.
Sec. 10104. Restrictions on internet expenses.
Sec. 10105. Matching funds requirements.
Sec. 10106. Administrative cost sharing.
Sec. 10107. National education and obesity prevention grant program.
Sec. 10108. Alien SNAP eligibility.

Subtitle B--Forestry

Sec. 10201. Rescission of amounts for forestry.

Subtitle C--Commodities

Sec. 10301. Effective reference price; reference price.
Sec. 10302. Base acres.
Sec. 10303. Producer election.
Sec. 10304. Price loss coverage.
Sec. 10305. Agriculture risk coverage.
Sec. 10306. Equitable treatment of certain entities.
Sec. 10307. Payment limitations.
Sec. 10308. Adjusted gross income limitation.
Sec. 10309. Marketing loans.
Sec. 10310. Repayment of marketing loans.
Sec. 10311. Economic adjustment assistance for textile mills.
Sec. 10312. Sugar program updates.
Sec. 10313. Dairy policy updates.
Sec. 10314. Implementation.

Subtitle D--Disaster Assistance Programs

Sec. 10401. Supplemental agricultural disaster assistance.

Subtitle E--Crop Insurance

Sec. 10501. Beginning farmer and rancher benefit.
Sec. 10502. Area-based crop insurance coverage and affordability.
Sec. 10503. Administrative and operating expense adjustments.
Sec. 10504. Premium support.
Sec. 10505. Program compliance and integrity.
Sec. 10506. Reviews, compliance, and integrity.
Sec. 10507. Poultry insurance pilot program.

Subtitle F--Additional Investments in Rural America

Sec. 10601. Conservation.

[[Page 139 STAT. 73]]

Sec. 10602. Supplemental agricultural trade promotion program.
Sec. 10603. Nutrition.
Sec. 10604. Research.
Sec. 10605. Energy.
Sec. 10606. Horticulture.
Sec. 10607. Miscellaneous.

TITLE II--COMMITTEE ON ARMED SERVICES

Sec. 20001. Enhancement of Department of Defense resources for improving 
the quality of life for military personnel.
Sec. 20002. Enhancement of Department of Defense resources for 
shipbuilding.
Sec. 20003. Enhancement of Department of Defense resources for 
integrated air and missile defense.
Sec. 20004. Enhancement of Department of Defense resources for munitions 
and defense supply chain resiliency.
Sec. 20005. Enhancement of Department of Defense resources for scaling 
low-cost weapons into production.
Sec. 20006. Enhancement of Department of Defense resources for improving 
the efficiency and cybersecurity of the Department of 
Defense.
Sec. 20007. Enhancement of Department of Defense resources for air 
superiority.
Sec. 20008. Enhancement of resources for nuclear forces.
Sec. 20009. Enhancement of Department of Defense resources to improve 
capabilities of United States Indo-Pacific Command.
Sec. 20010. Enhancement of Department of Defense resources for improving 
the readiness of the Department of Defense.
Sec. 20011. Improving Department of Defense border support and counter-
drug missions.
Sec. 20012. Department of Defense oversight.
Sec. 20013. Military construction projects authorized.

TITLE III--COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS

Sec. 30001. Funding cap for the Bureau of Consumer Financial Protection.
Sec. 30002. Rescission of funds for Green and Resilient Retrofit Program 
for Multifamily Housing.
Sec. 30003. Securities and Exchange Commission Reserve Fund.
Sec. 30004. Appropriations for Defense Production Act.

TITLE IV--COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

Sec. 40001. Coast Guard mission readiness.
Sec. 40002. Spectrum auctions.
Sec. 40003. Air traffic control improvements.
Sec. 40004. Space launch and reentry licensing and permitting user fees.
Sec. 40005. Mars missions, Artemis missions, and Moon to Mars program.
Sec. 40006. Corporate average fuel economy civil penalties.
Sec. 40007. Payments for lease of Metropolitan Washington Airports.
Sec. 40008. Rescission of certain amounts for the National Oceanic and 
Atmospheric Administration.
Sec. 40009. Reduction in annual transfers to Travel Promotion Fund.
Sec. 40010. Treatment of unobligated funds for alternative fuel and low-
emission aviation technology.
Sec. 40011. Rescission of amounts appropriated to Public Wireless Supply 
Chain Innovation Fund.

TITLE V--COMMITTEE ON ENERGY AND NATURAL RESOURCES

Subtitle A--Oil and Gas Leasing

Sec. 50101. Onshore oil and gas leasing.
Sec. 50102. Offshore oil and gas leasing.
Sec. 50103. Royalties on extracted methane.
Sec. 50104. Alaska oil and gas leasing.
Sec. 50105. National Petroleum Reserve-Alaska.

Subtitle B--Mining

Sec. 50201. Coal leasing.
Sec. 50202. Coal royalty.
Sec. 50203. Leases for known recoverable coal resources.
Sec. 50204. Authorization to mine Federal coal.

Subtitle C--Lands

Sec. 50301. Timber sales and long-term contracting for the Forest 
Service and the Bureau of Land Management.

[[Page 139 STAT. 74]]

Sec. 50302. Renewable energy fees on Federal land.
Sec. 50303. Renewable energy revenue sharing.
Sec. 50304. Rescission of National Park Service and Bureau of Land 
Management funds.
Sec. 50305. Celebrating America's 250th anniversary.

Subtitle D--Energy

Sec. 50401. Strategic Petroleum Reserve.
Sec. 50402. Repeals; rescissions.
Sec. 50403. Energy dominance financing.
Sec. 50404. Transformational artificial intelligence models.

Subtitle E--Water

Sec. 50501. Water conveyance and surface water storage enhancement.

TITLE VI--COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS

Sec. 60001. Rescission of funding for clean heavy-duty vehicles.
Sec. 60002. Repeal of Greenhouse Gas Reduction Fund.
Sec. 60003. Rescission of funding for diesel emissions reductions.
Sec. 60004. Rescission of funding to address air pollution.
Sec. 60005. Rescission of funding to address air pollution at schools.
Sec. 60006. Rescission of funding for the low emissions electricity 
program.
Sec. 60007. Rescission of funding for section 211(o) of the Clean Air 
Act.
Sec. 60008. Rescission of funding for implementation of the American 
Innovation and Manufacturing Act.
Sec. 60009. Rescission of funding for enforcement technology and public 
information.
Sec. 60010. Rescission of funding for greenhouse gas corporate 
reporting.
Sec. 60011. Rescission of funding for environmental product declaration 
assistance.
Sec. 60012. Rescission of funding for methane emissions and waste 
reduction incentive program for petroleum and natural gas 
systems.
Sec. 60013. Rescission of funding for greenhouse gas air pollution plans 
and implementation grants.
Sec. 60014. Rescission of funding for environmental protection agency 
efficient, accurate, and timely reviews.
Sec. 60015. Rescission of funding for low-embodied carbon labeling for 
construction materials.
Sec. 60016. Rescission of funding for environmental and climate justice 
block grants.
Sec. 60017. Rescission of funding for ESA recovery plans.
Sec. 60018. Rescission of funding for environmental and climate data 
collection.
Sec. 60019. Rescission of neighborhood access and equity grant program.
Sec. 60020. Rescission of funding for Federal building assistance.
Sec. 60021. Rescission of funding for low-carbon materials for Federal 
buildings.
Sec. 60022. Rescission of funding for GSA emerging and sustainable 
technologies.
Sec. 60023. Rescission of environmental review implementation funds.
Sec. 60024. Rescission of low-carbon transportation materials grants.
Sec. 60025. John F. Kennedy Center for the Performing Arts.
Sec. 60026. Project sponsor opt-in fees for environmental reviews.

TITLE VII--FINANCE

Subtitle A--Tax

Sec. 70001. References to the Internal Revenue Code of 1986, etc.

Chapter 1--Providing Permanent Tax Relief for Middle-class Families and 
Workers

Sec. 70101. Extension and enhancement of reduced rates.
Sec. 70102. Extension and enhancement of increased standard deduction.
Sec. 70103. Termination of deduction for personal exemptions other than 
temporary senior deduction.
Sec. 70104. Extension and enhancement of increased child tax credit.
Sec. 70105. Extension and enhancement of deduction for qualified 
business income.
Sec. 70106. Extension and enhancement of increased estate and gift tax 
exemption amounts.
Sec. 70107. Extension of increased alternative minimum tax exemption 
amounts and modification of phaseout thresholds.
Sec. 70108. Extension and modification of limitation on deduction for 
qualified residence interest.
Sec. 70109. Extension and modification of limitation on casualty loss 
deduction.

[[Page 139 STAT. 75]]

Sec. 70110. Termination of miscellaneous itemized deductions other than 
educator expenses.
Sec. 70111. Limitation on tax benefit of itemized deductions.
Sec. 70112. Extension and modification of qualified transportation 
fringe benefits.
Sec. 70113. Extension and modification of limitation on deduction and 
exclusion for moving expenses.
Sec. 70114. Extension and modification of limitation on wagering losses.
Sec. 70115. Extension and enhancement of increased limitation on 
contributions to ABLE accounts.
Sec. 70116. Extension and enhancement of savers credit allowed for ABLE 
contributions.
Sec. 70117. Extension of rollovers from qualified tuition programs to 
ABLE accounts permitted.
Sec. 70118. Extension of treatment of certain individuals performing 
services in the Sinai Peninsula and enhancement to include 
additional areas.
Sec. 70119. Extension and modification of exclusion from gross income of 
student loans discharged on account of death or disability.
Sec. 70120. Limitation on individual deductions for certain state and 
local taxes, etc.

Chapter 2--Delivering on Presidential Priorities to Provide New Middle-
class Tax Relief

Sec. 70201. No tax on tips.
Sec. 70202. No tax on overtime.
Sec. 70203. No tax on car loan interest.
Sec. 70204. Trump accounts and contribution pilot program.

Chapter 3--Establishing Certainty and Competitiveness for American Job 
Creators

subchapter a--permanent u.s. business tax reform and boosting domestic 
investment

Sec. 70301. Full expensing for certain business property.
Sec. 70302. Full expensing of domestic research and experimental 
expenditures.
Sec. 70303. Modification of limitation on business interest.
Sec. 70304. Extension and enhancement of paid family and medical leave 
credit.
Sec. 70305. Exceptions from limitations on deduction for business meals.
Sec. 70306. Increased dollar limitations for expensing of certain 
depreciable business assets.
Sec. 70307. Special depreciation allowance for qualified production 
property.
Sec. 70308. Enhancement of advanced manufacturing investment credit.
Sec. 70309. Spaceports are treated like airports under exempt facility 
bond rules.

subchapter b--permanent america-first international tax reforms

PART I--Foreign Tax Credit

Sec. 70311. Modifications related to foreign tax credit limitation.
Sec. 70312. Modifications to determination of deemed paid credit for 
taxes properly attributable to tested income.
Sec. 70313. Sourcing certain income from the sale of inventory produced 
in the United States.

PART II--Foreign-derived Deduction Eligible Income and Net CFC Tested 
Income

Sec. 70321. Modification of deduction for foreign-derived deduction 
eligible income and net CFC tested income.
Sec. 70322. Determination of deduction eligible income.
Sec. 70323. Rules related to deemed intangible income.

PART III--Base Erosion Minimum Tax

Sec. 70331. Extension and modification of base erosion minimum tax 
amount.

PART IV--Business Interest Limitation

Sec. 70341. Coordination of business interest limitation with interest 
capitalization provisions.
Sec. 70342. Definition of adjusted taxable income for business interest 
limitation.

PART V--Other International Tax Reforms

Sec. 70351. Permanent extension of look-thru rule for related controlled 
foreign corporations.

[[Page 139 STAT. 76]]

Sec. 70352. Repeal of election for 1-month deferral in determination of 
taxable year of specified foreign corporations.
Sec. 70353. Restoration of limitation on downward attribution of stock 
ownership in applying constructive ownership rules.
Sec. 70354. Modifications to pro rata share rules.

Chapter 4--Investing in American Families, Communities, and Small 
Businesses

subchapter a--permanent investments in families and children

Sec. 70401. Enhancement of employer-provided child care credit.
Sec. 70402. Enhancement of adoption credit.
Sec. 70403. Recognizing Indian tribal governments for purposes of 
determining whether a child has special needs for purposes of 
the adoption credit.
Sec. 70404. Enhancement of the dependent care assistance program.
Sec. 70405. Enhancement of child and dependent care tax credit.

subchapter b--permanent investments in students and reforms to tax-
exempt institutions

Sec. 70411. Tax credit for contributions of individuals to scholarship 
granting organizations.
Sec. 70412. Exclusion for employer payments of student loans.
Sec. 70413. Additional expenses treated as qualified higher education 
expenses for purposes of 529 accounts.
Sec. 70414. Certain postsecondary credentialing expenses treated as 
qualified higher education expenses for purposes of 529 
accounts.
Sec. 70415. Modification of excise tax on investment income of certain 
private colleges and universities.
Sec. 70416. Expanding application of tax on excess compensation within 
tax-exempt organizations.

subchapter c--permanent investments in community development

Sec. 70421. Permanent renewal and enhancement of opportunity zones.
Sec. 70422. Permanent enhancement of low-income housing tax credit.
Sec. 70423. Permanent extension of new markets tax credit.
Sec. 70424. Permanent and expanded reinstatement of partial deduction 
for charitable contributions of individuals who do not elect 
to itemize.
Sec. 70425. 0.5 percent floor on deduction of contributions made by 
individuals.
Sec. 70426. 1-percent floor on deduction of charitable contributions 
made by corporations.
Sec. 70427. Permanent increase in limitation on cover over of tax on 
distilled spirits.
Sec. 70428. Nonprofit community development activities in remote native 
villages.
Sec. 70429. Adjustment of charitable deduction for certain expenses 
incurred in support of Native Alaskan subsistence whaling.
Sec. 70430. Exception to percentage of completion method of accounting 
for certain residential construction contracts.

subchapter d--permanent investments in small business and rural america

Sec. 70431. Expansion of qualified small business stock gain exclusion.
Sec. 70432. Repeal of revision to de minimis rules for third party 
network transactions.
Sec. 70433. Increase in threshold for requiring information reporting 
with respect to certain payees.
Sec. 70434. Treatment of certain qualified sound recording productions.
Sec. 70435. Exclusion of interest on loans secured by rural or 
agricultural real property.
Sec. 70436. Reduction of transfer and manufacturing taxes for certain 
devices.
Sec. 70437. Treatment of capital gains from the sale of certain farmland 
property.
Sec. 70438. Extension of rules for treatment of certain disaster-related 
personal casualty losses.
Sec. 70439. Restoration of taxable REIT subsidiary asset test.

Chapter 5--Ending Green New Deal Spending, Promoting America-first 
Energy, and Other Reforms

subchapter a--termination of green new deal subsidies

Sec. 70501. Termination of previously-owned clean vehicle credit.
Sec. 70502. Termination of clean vehicle credit.
Sec. 70503. Termination of qualified commercial clean vehicles credit.

[[Page 139 STAT. 77]]

Sec. 70504. Termination of alternative fuel vehicle refueling property 
credit.
Sec. 70505. Termination of energy efficient home improvement credit.
Sec. 70506. Termination of residential clean energy credit.
Sec. 70507. Termination of energy efficient commercial buildings 
deduction.
Sec. 70508. Termination of new energy efficient home credit.
Sec. 70509. Termination of cost recovery for energy property.
Sec. 70510. Modifications of zero-emission nuclear power production 
credit.
Sec. 70511. Termination of clean hydrogen production credit.
Sec. 70512. Termination and restrictions on clean electricity production 
credit.
Sec. 70513. Termination and restrictions on clean electricity investment 
credit.
Sec. 70514. Phase-out and restrictions on advanced manufacturing 
production credit.
Sec. 70515. Restriction on the extension of advanced energy project 
credit program.

subchapter b--enhancement of america-first energy policy

Sec. 70521. Extension and modification of clean fuel production credit.
Sec. 70522. Restrictions on carbon oxide sequestration credit.
Sec. 70523. Intangible drilling and development costs taken into account 
for purposes of computing adjusted financial statement 
income.
Sec. 70524. Income from hydrogen storage, carbon capture, advanced 
nuclear, hydropower, and geothermal energy added to 
qualifying income of certain publicly traded partnerships.
Sec. 70525. Allow for payments to certain individuals who dye fuel.

subchapter c--other reforms

Sec. 70531. Modifications to de minimis entry privilege for commercial 
shipments.

Chapter 6--Enhancing Deduction and Income Tax Credit Guardrails, and 
Other Reforms

Sec. 70601. Modification and extension of limitation on excess business 
losses of noncorporate taxpayers.
Sec. 70602. Treatment of payments from partnerships to partners for 
property or services.
Sec. 70603. Excessive employee remuneration from controlled group 
members and allocation of deduction.
Sec. 70604. Excise tax on certain remittance transfers.
Sec. 70605. Enforcement provisions with respect to COVID-related 
employee retention credits.
Sec. 70606. Social security number requirement for American Opportunity 
and Lifetime Learning credits.
Sec. 70607. Task force on the replacement of Direct File.

Subtitle B--Health

Chapter 1--Medicaid

subchapter a--reducing fraud and improving enrollment processes

Sec. 71101. Moratorium on implementation of rule relating to eligibility 
and enrollment in Medicare Savings Programs.
Sec. 71102. Moratorium on implementation of rule relating to eligibility 
and enrollment for Medicaid, CHIP, and the Basic Health 
Program.
Sec. 71103. Reducing duplicate enrollment under the Medicaid and CHIP 
programs.
Sec. 71104. Ensuring deceased individuals do not remain enrolled.
Sec. 71105. Ensuring deceased providers do not remain enrolled.
Sec. 71106. Payment reduction related to certain erroneous excess 
payments under Medicaid.
Sec. 71107. Eligibility redeterminations.
Sec. 71108. Revising home equity limit for determining eligibility for 
long-term care services under the Medicaid program.
Sec. 71109. Alien Medicaid eligibility.
Sec. 71110. Expansion FMAP for emergency Medicaid.

subchapter b--preventing wasteful spending

Sec. 71111. Moratorium on implementation of rule relating to staffing 
standards for long-term care facilities under the Medicare 
and Medicaid programs.
Sec. 71112. Reducing State Medicaid costs.
Sec. 71113. Federal payments to prohibited entities.

subchapter c--stopping abusive financing practices

Sec. 71114. Sunsetting increased FMAP incentive.

[[Page 139 STAT. 78]]

Sec. 71115. Provider taxes.
Sec. 71116. State directed payments.
Sec. 71117. Requirements regarding waiver of uniform tax requirement for 
Medicaid provider tax.
Sec. 71118. Requiring budget neutrality for Medicaid demonstration 
projects under section 1115.

subchapter d--increasing personal accountability

Sec. 71119. Requirement for States to establish Medicaid community 
engagement requirements for certain individuals.
Sec. 71120. Modifying cost sharing requirements for certain expansion 
individuals under the Medicaid program.

subchapter e--expanding access to care

Sec. 71121. Making certain adjustments to coverage of home or community-
based services under Medicaid.

Chapter 2--Medicare

subchapter a--strengthening eligibility requirements

Sec. 71201. Limiting Medicare coverage of certain individuals.

subchapter b--improving services for seniors

Sec. 71202. Temporary payment increase under the medicare physician fee 
schedule to account for exceptional circumstances.
Sec. 71203. Expanding and clarifying the exclusion for orphan drugs 
under the Drug Price Negotiation Program.

Chapter 3--Health Tax

subchapter a--improving eligibility criteria

Sec. 71301. Permitting premium tax credit only for certain individuals.
Sec. 71302. Disallowing premium tax credit during periods of medicaid 
ineligibility due to alien status.

subchapter b--preventing waste, fraud, and abuse

Sec. 71303. Requiring verification of eligibility for premium tax 
credit.
Sec. 71304. Disallowing premium tax credit in case of certain coverage 
enrolled in during special enrollment period.
Sec. 71305. Eliminating limitation on recapture of advance payment of 
premium tax credit.

subchapter c--enhancing choice for patients

Sec. 71306. Permanent extension of safe harbor for absence of deductible 
for telehealth services.
Sec. 71307. Allowance of bronze and catastrophic plans in connection 
with health savings accounts.
Sec. 71308. Treatment of direct primary care service arrangements.

Chapter 4--Protecting Rural Hospitals and Providers

Sec. 71401. Rural Health Transformation Program.

Subtitle C--Increase in Debt Limit

Sec. 72001. Modification of limitation on the public debt.

Subtitle D--Unemployment

Sec. 73001. Ending unemployment payments to jobless millionaires.

TITLE VIII--COMMITTEE ON HEALTH, EDUCATION, LABOR, AND PENSIONS

Subtitle A--Exemption of Certain Assets

Sec. 80001. Exemption of certain assets.

Subtitle B--Loan Limits

Sec. 81001. Establishment of loan limits for graduate and professional 
students and parent borrowers; termination of graduate and 
professional PLUS loans.

Subtitle C--Loan Repayment

Sec. 82001. Loan repayment.

[[Page 139 STAT. 79]]

Sec. 82002. Deferment; forbearance.
Sec. 82003. Loan rehabilitation.
Sec. 82004. Public service loan forgiveness.
Sec. 82005. Student loan servicing.

Subtitle D--Pell Grants

Sec. 83001. Eligibility.
Sec. 83002. Workforce Pell Grants.
Sec. 83003. Pell shortfall.
Sec. 83004. Federal Pell Grant exclusion relating to other grant aid.

Subtitle E--Accountability

Sec. 84001. Ineligibility based on low earning outcomes.

Subtitle F--Regulatory Relief

Sec. 85001. Delay of rule relating to borrower defense to repayment.
Sec. 85002. Delay of rule relating to closed school discharges.

Subtitle G--Garden of Heroes

Sec. 86001. Garden of Heroes.

Subtitle H--Office of Refugee Resettlement

Sec. 87001. Potential sponsor vetting for unaccompanied alien children 
appropriation.

TITLE IX--COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

Subtitle A--Homeland Security Provisions

Sec. 90001. Border infrastructure and wall system.
Sec. 90002. U.S. Customs and Border Protection personnel, fleet 
vehicles, and facilities.
Sec. 90003. Detention capacity.
Sec. 90004. Border security, technology, and screening.
Sec. 90005. State and local assistance.
Sec. 90006. Presidential residence protection.
Sec. 90007. Department of Homeland Security appropriations for border 
support.

Subtitle B--Governmental Affairs Provisions

Sec. 90101. FEHB improvements.
Sec. 90102. Pandemic Response Accountability Committee.
Sec. 90103. Appropriation for the Office of Management and Budget.

TITLE X--COMMITTEE ON THE JUDICIARY

Subtitle A--Immigration and Law Enforcement Matters

PART I--Immigration Fees

Sec. 100001. Applicability of the immigration laws.
Sec. 100002. Asylum fee.
Sec. 100003. Employment authorization document fees.
Sec. 100004. Immigration parole fee.
Sec. 100005. Special immigrant juvenile fee.
Sec. 100006. Temporary protected status fee.
Sec. 100007. Visa integrity fee.
Sec. 100008. Form I-94 fee.
Sec. 100009. Annual asylum fee.
Sec. 100010. Fee relating to renewal and extension of employment 
authorization for parolees.
Sec. 100011. Fee relating to renewal or extension of employment 
authorization for asylum applicants.
Sec. 100012. Fee relating to renewal and extension of employment 
authorization for aliens granted temporary protected status.
Sec. 100013. Fees relating to applications for adjustment of status.
Sec. 100014. Electronic System for Travel Authorization fee.
Sec. 100015. Electronic Visa Update System fee.
Sec. 100016. Fee for aliens ordered removed in absentia.
Sec. 100017. Inadmissible alien apprehension fee.
Sec. 100018. Amendment to authority to apply for asylum.

PART II--Immigration and Law Enforcement Funding

Sec. 100051. Appropriation for the Department of Homeland Security.

[[Page 139 STAT. 80]]

Sec. 100052. Appropriation for U.S. Immigration and Customs Enforcement.
Sec. 100053. Appropriation for Federal Law Enforcement Training Centers.
Sec. 100054. Appropriation for the Department of Justice.
Sec. 100055. Bridging Immigration-related Deficits Experienced 
Nationwide Reimbursement Fund.
Sec. 100056. Appropriation for the Bureau of Prisons.
Sec. 100057. Appropriation for the United States Secret Service.

Subtitle B--Judiciary Matters

Sec. 100101. Appropriation to the Administrative Office of the United 
States Courts.
Sec. 100102. Appropriation to the Federal Judicial Center.

Subtitle C--Radiation Exposure Compensation Matters

Sec. 100201. Extension of fund.
Sec. 100202. Claims relating to atmospheric testing.
Sec. 100203. Claims relating to uranium mining.
Sec. 100204. Claims relating to Manhattan Project waste.
Sec. 100205. Limitations on claims.

TITLE I--COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY

Subtitle A--Nutrition

SEC. 10101. RE-EVALUATION OF THRIFTY FOOD PLAN.

(a) In General.--Section 3 of the Food and Nutrition Act of 2008 (7 
U.S.C. 2012) is amended by striking subsection (u) and inserting the 
following:
``(u) Thrifty Food Plan.--
``(1) <<NOTE: Definition.>> In general.--The term `thrifty 
food plan' means the diet required to feed a family of 4 persons 
consisting of a man and a woman ages 20 through 50, a child ages 
6 through 8, and a child ages 9 through 11 using the items and 
quantities of food described in the report of the Department of 
Agriculture entitled `Thrifty Food Plan, 2021', and each 
successor report updated pursuant to this subsection, subject to 
the conditions that--
``(A) the relevant market baskets of the thrifty 
food plan shall only be changed pursuant to paragraph 
(4);
``(B) the cost of the thrifty food plan shall be the 
basis for uniform allotments for all households, 
regardless of the actual composition of the household; 
and
``(C) the cost of the thrifty food plan may only be 
adjusted in accordance with this subsection.
``(2) Household adjustments.--The Secretary shall make 
household adjustments using the following ratios of household 
size as a percentage of the maximum 4-person allotment:
``(A) For a 1-person household, 30 percent.
``(B) For a 2-person household, 55 percent.
``(C) For a 3-person household, 79 percent.
``(D) For a 4-person household, 100 percent.
``(E) For a 5-person household, 119 percent.
``(F) For a 6-person household, 143 percent.
``(G) For a 7-person household, 158 percent.
``(H) For an 8-person household, 180 percent.

[[Page 139 STAT. 81]]

``(I) For a household of 9 persons or more, an 
additional 22 percent per person, which additional 
percentage shall not total more than 200 percent.
``(3) Allowable cost adjustments.--The Secretary shall--
``(A) <<NOTE: Hawaii. Alaska.>> make cost 
adjustments in the thrifty food plan for Hawaii and the 
urban and rural parts of Alaska to reflect the cost of 
food in Hawaii and urban and rural Alaska;
``(B) <<NOTE: Guam. Virgin Islands.>> make cost 
adjustments in the separate thrifty food plans for Guam 
and the Virgin Islands of the United States to reflect 
the cost of food in those States, but not to exceed the 
cost of food in the 50 States and the District of 
Columbia; and
``(C) <<NOTE: Effective dates. Time 
period. Expiration date.>> on October 1, 2025, and on 
each October 1 thereafter, adjust the cost of the 
thrifty food plan to reflect changes in the Consumer 
Price Index for All Urban Consumers, published by the 
Bureau of Labor Statistics of the Department of Labor, 
for the most recent 12-month period ending in June.
``(4) Re-evaluation of market baskets.--
``(A) <<NOTE: Deadline.>> Re-evaluation.--Not 
earlier than October 1, 2027, the Secretary may re-
evaluate the market baskets of the thrifty food plan 
based on current food prices, food composition data, 
consumption patterns, and dietary guidance.
``(B) Cost neutrality.--The Secretary shall not 
increase the cost of the thrifty food plan based on a 
re-evaluation under this paragraph.''.

(b) Conforming Amendments.--
(1) Section 16(c)(1)(A)(ii)(II) of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2025(c)(1)(A)(ii)(II)) is amended by 
striking ``section 3(u)(4)'' and inserting ``section 3(u)(3)''.
(2) Section 19(a)(2)(A)(ii) of the Food and Nutrition Act of 
2008 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended by striking 
``section 3(u)(4)'' and inserting ``section 3(u)(3)''.
(3) Section 27(a)(2) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2036(a)(2))) is amended by striking ``section 
3(u)(4)'' each place it appears and inserting ``section 
3(u)(3)''.
SEC. 10102. MODIFICATIONS TO SNAP WORK REQUIREMENTS FOR ABLE-
BODIED ADULTS.

(a) Exceptions.--Section 6(o) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2015(o)) is amended by striking paragraph (3) and inserting 
the following:
``(3) Exceptions.--Paragraph (2) shall not apply to an 
individual if the individual is--
``(A) under 18, or over 65, years of age;
``(B) medically certified as physically or mentally 
unfit for employment;
``(C) a parent or other member of a household with 
responsibility for a dependent child under 14 years of 
age;
``(D) otherwise exempt under subsection (d)(2);
``(E) a pregnant woman;
``(F) an Indian or an Urban Indian (as such terms 
are defined in paragraphs (13) and (28) of section 4 of 
the Indian Health Care Improvement Act); or

[[Page 139 STAT. 82]]

``(G) a California Indian described in section 
809(a) of the Indian Health Care Improvement Act.''.

(b) Standardizing Enforcement.--Section 6(o)(4) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2015(o)(4)) is amended--
(1) in subparagraph (A), by striking clause (ii) and 
inserting the following:
``(ii) is in a noncontiguous State and has an 
unemployment rate that is at or above 1.5 times 
the national unemployment rate.''; and
(2) by adding at the end the following:
``(C) Definition of noncontiguous state.--
``(i) In general.--In this paragraph, the term 
`noncontiguous State' means a State that is not 1 
of the contiguous 48 States or the District of 
Columbia.
``(ii) Exclusions.--The term `noncontiguous 
State' does not include Guam or the Virgin Islands 
of the United States.''.

(c) Waiver for Noncontiguous States.--Section 6(o) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2015(o)) is amended--
(1) by redesignating paragraph (7) as paragraph (8); and
(2) by inserting after paragraph (6) the following:
``(7) Exemption for noncontiguous states.--
``(A) Definition of noncontiguous state.--
``(i) In general.--In this paragraph, the term 
`noncontiguous State' means a State that is not 1 
of the contiguous 48 States or the District of 
Columbia.
``(ii) Exclusions.--In this paragraph, the 
term `noncontiguous State' does not include Guam 
or the Virgin Islands of the United States.
``(B) Exemption.--Subject to subparagraph (D), the 
Secretary may exempt individuals in a noncontiguous 
State from compliance with the requirements of paragraph 
(2) if--
``(i) the State agency submits to the 
Secretary a request for that exemption, made in 
such form and at such time as the Secretary may 
require, and including the information described 
in subparagraph (C); and

``(ii) <<NOTE: Determination. Compliance.>> the 
Secretary determines that based on that request, 
the State agency is demonstrating a good faith 
effort to comply with the requirements of 
paragraph (2).
``(C) Good faith effort determination.--In 
determining whether a State agency is demonstrating a 
good faith effort for purposes of subparagraph (B)(ii), 
the Secretary shall consider--
``(i) any actions taken by the State agency 
toward compliance with the requirements of 
paragraph (2);
``(ii) any significant barriers to or 
challenges in meeting those requirements, 
including barriers or challenges relating to 
funding, design, development, procurement, or 
installation of necessary systems or resources;
``(iii) the detailed plan and timeline of the 
State agency for achieving full compliance with 
those requirements, including any milestones (as 
defined by the Secretary); and

[[Page 139 STAT. 83]]

``(iv) any other criteria determined 
appropriate by the Secretary.
``(D) Duration of exemption.--
``(i) <<NOTE: Deadline.>> In general.--An 
exemption granted under subparagraph (B) shall 
expire not later than December 31, 2028, and may 
not be renewed beyond that date.
``(ii) <<NOTE: Determination.>> Early 
termination.--The Secretary may terminate an 
exemption granted under subparagraph (B) prior to 
the expiration date of that exemption if the 
Secretary determines that the State agency--
``(I) <<NOTE: Compliance.>> has 
failed to comply with the reporting 
requirements described in subparagraph 
(E); or
``(II) based on the information 
provided pursuant to subparagraph (E), 
failed to make continued good faith 
efforts toward compliance with the 
requirements of this subsection.
``(E) Reporting requirements.--A State agency 
granted an exemption under subparagraph (B) shall submit 
to the Secretary--
``(i) quarterly progress reports on the status 
of the State agency in achieving the milestones 
toward full compliance described in subparagraph 
(C)(iii); and
``(ii) <<NOTE: Plan.>> information on specific 
risks or newly identified barriers or challenges 
to full compliance, including the plan of the 
State agency to mitigate those risks, barriers, or 
challenges.''.
SEC. 10103. AVAILABILITY OF STANDARD UTILITY ALLOWANCES BASED ON 
RECEIPT OF ENERGY ASSISTANCE.

(a) Standard Utility Allowance.--Section 5(e)(6)(C)(iv)(I) of the 
Food and Nutrition Act of 2008 (7 U.S.C. 2014(e)(6)(C)(iv)(I)) is 
amended by inserting ``with an elderly or disabled member'' after 
``households''.
(b) Third-party Energy Assistance Payments.--Section 5(k)(4) of the 
Food and Nutrition Act of 2008 (7 U.S.C. 2014(k)(4)) is amended--
(1) in subparagraph (A), by inserting ``without an elderly 
or disabled member'' before ``shall be''; and
(2) in subparagraph (B), by inserting ``with an elderly or 
disabled member'' before ``under a State law''.
SEC. 10104. RESTRICTIONS ON INTERNET EXPENSES.

Section 5(e)(6) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2014(e)(6)) is amended by adding at the end the following:
``(E) Restrictions on internet expenses.--Any 
service fee associated with internet connection shall 
not be used in computing the excess shelter expense 
deduction under this paragraph.''.
SEC. 10105. MATCHING FUNDS REQUIREMENTS.

(a) In General.--Section 4(a) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2013(a)) is amended--
(1) by striking ``(a) Subject to'' and inserting the 
following:

``(a) Program.--
``(1) Establishment.--Subject to''; and
(2) by adding at the end the following:
``(2) State quality control incentive.--

[[Page 139 STAT. 84]]

``(A) Definition of payment error rate.--In this 
paragraph, the term `payment error rate' has the meaning 
given the term in section 16(c)(2).
``(B) <<NOTE: Time periods.>> State cost share.--
``(i) <<NOTE: Effective date.>> In general.--
Subject to clause (iii), beginning in fiscal year 
2028, if the payment error rate of a State as 
determined under clause (ii) is--
``(I) less than 6 percent, the 
Federal share of the cost of the 
allotment described in paragraph (1) for 
that State in a fiscal year shall be 100 
percent, and the State share shall be 0 
percent;
``(II) equal to or greater than 6 
percent but less than 8 percent, the 
Federal share of the cost of the 
allotment described in paragraph (1) for 
that State in a fiscal year shall be 95 
percent, and the State share shall be 5 
percent;
``(III) equal to or greater than 8 
percent but less than 10 percent, the 
Federal share of the cost of the 
allotment described in paragraph (1) for 
that State in a fiscal year shall be 90 
percent, and the State share shall be 10 
percent; and
``(IV) equal to or greater than 10 
percent, the Federal share of the cost 
of the allotment described in paragraph 
(1) for that State in a fiscal year 
shall be 85 percent, and the State share 
shall be 15 percent.
``(ii) Elections.--
``(I) Fiscal year 2028.--For fiscal 
year 2028, to calculate the applicable 
State share under clause (i), a State 
may elect to use the payment error rate 
of the State from fiscal year 2025 or 
2026.
``(II) Fiscal year 2029 and 
thereafter.--For fiscal year 2029 and 
each fiscal year thereafter, to 
calculate the applicable State share 
under clause (i), the Secretary shall 
use the payment error rate of the State 
for the third fiscal year preceding the 
fiscal year for which the State share is 
being calculated.
``(iii) Delayed implementation.--
``(I) Fiscal year 2025.--If, for 
fiscal year 2025, the payment error rate 
of a State multiplied by 1.5 is equal to 
or above 20 percent, the implementation 
date under clause (i) for that State 
shall be fiscal year 2029.
``(II) Fiscal year 2026.--If, for 
fiscal year 2026, the payment error rate 
of a State multiplied by 1.5 is equal to 
or above 20 percent, the implementation 
date under clause (i) for that State 
shall be fiscal year 2030.
``(3) Maximum federal payment.--The Secretary may not pay 
towards the cost of an allotment described in paragraph (1) an 
amount that is greater than the applicable Federal share under 
paragraph (2).''.

(b) Limitation on Authority.--Section 13(a)(1) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2022(a)(1)) is amended in

[[Page 139 STAT. 85]]

the first sentence by inserting ``or the payment or disposition of a 
State share under section 4(a)(2)'' after ``16(c)(1)(D)(i)(II)''.
SEC. 10106. ADMINISTRATIVE COST SHARING.

Section 16(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2025(a)) is amended in the matter preceding paragraph (1) by striking 
``agency an amount equal to 50 per centum'' and inserting ``agency, 
through fiscal year 2026, 50 percent, and for fiscal year 2027 and each 
fiscal year thereafter, 25 percent,''.
SEC. 10107. NATIONAL EDUCATION AND OBESITY PREVENTION GRANT 
PROGRAM.

Section 28(d)(1)(F) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2036a(d)(1)(F)) is amended by striking ``for fiscal year 2016 and each 
subsequent fiscal year'' and inserting ``for each of fiscal years 2016 
through 2025''.
SEC. 10108. ALIEN SNAP ELIGIBILITY.

Section 6(f) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2015(f)) is amended to read as follows:
``(f) No individual who is a member of a household otherwise 
eligible to participate in the supplemental nutrition assistance program 
under this section shall be eligible to participate in the supplemental 
nutrition assistance program as a member of that or any other household 
unless he or she is--
``(1) a resident of the United States; and
``(2) either--
``(A) a citizen or national of the United States;
``(B) an alien lawfully admitted for permanent 
residence as an immigrant as defined by sections 
101(a)(15) and 101(a)(20) of the Immigration and 
Nationality Act, excluding, among others, alien 
visitors, tourists, diplomats, and students who enter 
the United States temporarily with no intention of 
abandoning their residence in a foreign country;
``(C) an alien who has been granted the status of 
Cuban and Haitian entrant, as defined in section 501(e) 
of the Refugee Education Assistance Act of 1980 (Public 
Law 96-422); or
``(D) an individual who lawfully resides in the 
United States in accordance with a Compact of Free 
Association referred to in section 402(b)(2)(G) of the 
Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996.
The income (less, at State option, a pro rata share) and 
financial resources of the individual rendered ineligible to 
participate in the supplemental nutrition assistance program 
under this subsection shall be considered in determining the 
eligibility and the value of the allotment of the household of 
which such individual is a member.''.

Subtitle B--Forestry

SEC. 10201. RESCISSION OF AMOUNTS FOR FORESTRY.

The unobligated balances of amounts appropriated by the following 
provisions of Public Law 117-169 are rescinded:
(1) Paragraphs (3) and (4) of section 23001(a) (136 Stat. 
2023).

[[Page 139 STAT. 86]]

(2) Paragraphs (1) through (4) of section 23002(a) (136 
Stat. 2025).
(3) Section 23003(a)(2) (136 Stat. 2026).
(4) Section 23005 (136 Stat. 2027).

Subtitle C--Commodities

SEC. 10301. EFFECTIVE REFERENCE PRICE; REFERENCE PRICE.

(a) Effective Reference Price.--Section 1111(8)(B)(ii) of the 
Agricultural Act of 2014 (7 U.S.C. 9011(8)(B)(ii)) is amended by 
striking ``85'' and inserting ``beginning with the crop year 2025, 88''.
(b) Reference Price.--Section 1111 of the Agricultural Act of 2014 
(7 U.S.C. 9011) is amended by striking paragraph (19) and inserting the 
following:
``(19) <<NOTE: Effective dates.>> Reference price.--
``(A) In general.--Effective beginning with the 2025 
crop year, subject to subparagraphs (B) and (C), the 
term `reference price', with respect to a covered 
commodity for a crop year, means the following:
``(i) For wheat, $6.35 per bushel.
``(ii) For corn, $4.10 per bushel.
``(iii) For grain sorghum, $4.40 per bushel.
``(iv) For barley, $5.45 per bushel.
``(v) For oats, $2.65 per bushel.
``(vi) For long grain rice, $16.90 per 
hundredweight.
``(vii) For medium grain rice, $16.90 per 
hundredweight.
``(viii) For soybeans, $10.00 per bushel.
``(ix) For other oilseeds, $23.75 per 
hundredweight.
``(x) For peanuts, $630.00 per ton.
``(xi) For dry peas, $13.10 per hundredweight.
``(xii) For lentils, $23.75 per hundredweight.
``(xiii) For small chickpeas, $22.65 per 
hundredweight.
``(xiv) For large chickpeas, $25.65 per 
hundredweight.
``(xv) For seed cotton, $0.42 per pound.
``(B) Effectiveness.--Effective beginning with the 
2031 crop year, the reference prices defined in 
subparagraph (A) with respect to a covered commodity 
shall equal the reference price in the previous crop 
year multiplied by 1.005.
``(C) Limitation.--In no case shall a reference 
price for a covered commodity exceed 113 percent of the 
reference price for such covered commodity listed in 
subparagraph (A).''.
SEC. 10302. BASE ACRES.

Section 1112 of the Agricultural Act of 2014 (7 U.S.C. 9012) is 
amended--
(1) in subsection (d)(3)(A), by striking ``2023'' and 
inserting ``2031''; and
(2) by adding at the end the following:

``(e) Additional Base Acres.--

[[Page 139 STAT. 87]]

``(1) <<NOTE: Notice.>> In general.--As soon as practicable 
after the date of enactment of this subsection, and 
notwithstanding subsection (a), the Secretary shall provide 
notice to owners of eligible farms pursuant to paragraph (3) and 
allocate to those eligible farms a total of not more than an 
additional 30,000,000 base acres in the manner provided in this 
subsection. <<NOTE: Notification. Deadline.>> An owner of a farm 
that is eligible to receive an allocation of base acres may 
elect to not receive that allocation by notifying the Secretary 
not later than 90 days after receipt of the notice provided by 
the Secretary under this paragraph.
``(2) Content of notice.--The notice under paragraph (1) 
shall include the following:
``(A) Information that the allocation is occurring.
``(B) Information regarding the eligibility of the 
farm for an allocation of base acres under paragraph 
(3).
``(C) <<NOTE: Process.>> Information regarding how 
an owner may appeal a determination of ineligibility for 
an allocation of base acres under paragraph (3) through 
an appeals process established by the Secretary.
``(3) Eligibility.--
``(A) <<NOTE: Effective date.>> In general.--Subject 
to subparagraph (D), effective beginning with the 2026 
crop year, a farm is eligible to receive an allocation 
of base acres if, with respect to the farm, the amount 
described in subparagraph (B) exceeds the amount 
described in subparagraph (C).
``(B) 5-year average sum.--The amount described in 
this subparagraph, with respect to a farm, is the sum 
of--
``(i) the 5-year average of--
``(I) the acreage planted on the 
farm to all covered commodities for 
harvest, grazing, haying, silage or 
other similar purposes for the 2019 
through 2023 crop years; and
``(II) <<NOTE: Determination.>> any 
acreage on the farm that the producers 
were prevented from planting during the 
2019 through 2023 crop years to covered 
commodities because of drought, flood, 
or other natural disaster, or other 
condition beyond the control of the 
producers, as determined by the 
Secretary; plus
``(ii) the lesser of--
``(I) 15 percent of the total acres 
on the farm; and
``(II) the 5-year average of--
``(aa) the acreage planted 
on the farm to eligible 
noncovered commodities for 
harvest, grazing, haying, 
silage, or other similar 
purposes for the 2019 through 
2023 crop years; and

``(bb) <<NOTE: Determination.>> a
ny acreage on the farm that the 
producers were prevented from 
planting during the 2019 through 
2023 crop years to eligible 
noncovered commodities because 
of drought, flood, or other 
natural disaster, or other 
condition beyond the control of 
the producers, as determined by 
the Secretary.

[[Page 139 STAT. 88]]

``(C) Total number of base acres for covered 
commodities.-- <<NOTE: Effective date.>> The amount 
described in this subparagraph, with respect to a farm, 
is the total number of base acres for covered 
commodities on the farm (excluding unassigned crop 
base), as in effect on September 30, 2024.
``(D) Effect of no recent plantings of covered 
commodities.--In the case of a farm for which the amount 
determined under clause (i) of subparagraph (B) is equal 
to zero, that farm shall be ineligible to receive an 
allocation of base acres under this subsection.
``(E) Acreage planted on the farm to eligible 
noncovered commodities defined.--In this paragraph, the 
term `acreage planted on the farm to eligible noncovered 
commodities' means acreage planted on a farm to 
commodities other than covered commodities, trees, 
bushes, vines, grass, or pasture (including cropland 
that was idle or fallow), as determined by the 
Secretary.
``(4) Number of base acres.--Subject to paragraphs (3) and 
(8), the number of base acres allocated to an eligible farm 
shall--
``(A) be equal to the difference obtained by 
subtracting the amount determined under subparagraph (C) 
of paragraph (3) from the amount determined under 
subparagraph (B) of that paragraph; and
``(B) include unassigned crop base.
``(5) <<NOTE: Time periods. Determinations.>> Allocation of 
acres.--
``(A) Allocation.--The Secretary shall allocate the 
number of base acres under paragraph (4) among those 
covered commodities planted on the farm at any time 
during the 2019 through 2023 crop years.
``(B) Allocation formula.--The allocation of 
additional base acres for covered commodities shall be 
in proportion to the ratio of--
``(i) the 5-year average of--
``(I) the acreage planted on the 
farm to each covered commodity for 
harvest, grazing, haying, silage, or 
other similar purposes for the 2019 
through 2023 crop years; and
``(II) any acreage on the farm that 
the producers were prevented from 
planting during the 2019 through 2023 
crop years to that covered commodity 
because of drought, flood, or other 
natural disaster, or other condition 
beyond the control of the producers, as 
determined by the Secretary; to
``(ii) the 5-year average determined under 
paragraph (3)(B)(i).
``(C) Inclusion of all 5 years in average.--For the 
purpose of determining a 5-year acreage average under 
subparagraph (B) for a farm, the Secretary shall not 
exclude any crop year in which a covered commodity was 
not planted.
``(D) Treatment of multiple planting or prevented 
planting.--For the purpose of determining under 
subparagraph (B) the acreage on a farm that producers 
planted or were prevented from planting during the 2019 
through 2023 crop years to covered commodities, if the 
acreage

[[Page 139 STAT. 89]]

that was planted or prevented from being planted was 
devoted to another covered commodity in the same crop 
year (other than a covered commodity produced under an 
established practice of double cropping), the owner may 
elect the covered commodity to be used for that crop 
year in determining the 5-year average, but may not 
include both the initial covered commodity and the 
subsequent covered commodity.
``(E) Limitation.--The allocation of additional base 
acres among covered commodities on a farm under this 
paragraph may not result in a total number of base acres 
for the farm in excess of the total number of acres on 
the farm.
``(6) <<NOTE: Applicability.>> Reduction by the secretary.--
In carrying out this subsection, if the total number of eligible 
acres allocated to base acres across all farms in the United 
States under this subsection would exceed 30,000,000 acres, the 
Secretary shall apply an across-the-board, pro-rata reduction to 
the number of eligible acres to ensure the number of allocated 
base acres under this subsection is equal to 30,000,000 acres.
``(7) <<NOTE: Effective date.>> Payment yield.--Beginning 
with crop year 2026, for the purpose of making price loss 
coverage payments under section 1116, the Secretary shall 
establish payment yields to base acres allocated under this 
subsection equal to--
``(A) the payment yield established on the farm for 
the applicable covered commodity; and
``(B) if no such payment yield for the applicable 
covered commodity exists, a payment yield--
``(i) equal to the average payment yield for 
the covered commodity for the county in which the 
farm is situated; or
``(ii) determined pursuant to section 1113(c).
``(8) <<NOTE: Time period.>> Treatment of new owners.--In 
the case of a farm for which the owner on the date of enactment 
of this subsection was not the owner for the 2019 through 2023 
crop years, the Secretary shall use the planting history of the 
prior owner or owners of that farm for purposes of determining--
``(A) eligibility under paragraph (3);
``(B) eligible acres under paragraph (4); and
``(C) the allocation of acres under paragraph 
(5).''.
SEC. 10303. PRODUCER ELECTION.

(a) In General.--Section 1115 of the Agricultural Act of 2014 (7 
U.S.C. 9015) is amended--
(1) in subsection (a), in the matter preceding paragraph 
(1), by striking ``2023'' and inserting ``2031'';
(2) in subsection (c)--
(A) in the matter preceding paragraph (1)--
(i) by striking ``crop year or'' and inserting 
``crop year,''; and
(ii) by inserting ``or the 2026 crop year,'' 
after ``2019 crop year,'';
(B) in paragraph (1)--
(i) by striking ``crop year or'' and inserting 
``crop year,''; and
(ii) by inserting ``or the 2026 crop year,'' 
after ``2019 crop year,''; and

[[Page 139 STAT. 90]]

(C) in paragraph (2)--
(i) in subparagraph (A), by striking ``and'' 
at the end;
(ii) in subparagraph (B), by striking the 
period at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(C) the same coverage for each covered commodity 
on the farm for the 2027 through 2031 crop years as was 
applicable for the 2025 crop year.''; and
(3) by adding at the end the following:

``(i) Higher of Price Loss Coverage Payments and Agriculture Risk 
Coverage Payments.-- <<NOTE: Time period.>> For the 2025 crop year, the 
Secretary shall, on a covered commodity-by-covered commodity basis, make 
the higher of price loss coverage payments under section 1116 and 
agriculture risk coverage county coverage payments under section 1117 to 
the producers on a farm for the payment acres for each covered commodity 
on the farm.''.

(b) Federal Crop Insurance Supplemental Coverage Option.--Section 
508(c)(4)(C)(iv) of the Federal Crop Insurance Act (7 U.S.C. 
1508(c)(4)(C)(iv)) is amended by striking ``Crops for which the producer 
has elected under section 1116 of the Agricultural Act of 2014 to 
receive agriculture risk coverage and acres'' and inserting ``Acres''.
SEC. 10304. PRICE LOSS COVERAGE.

Section 1116 of the Agricultural Act of 2014 (7 U.S.C. 9016) is 
amended--
(1) in subsection (a)(2), in the matter preceding 
subparagraph (A), by striking ``2023'' and inserting ``2031'';
(2) in subsection (c)(1)(B)--
(A) in the subparagraph heading, by striking 
``2023'' and inserting ``2031''; and
(B) in the matter preceding clause (i), by striking 
``2023'' and inserting ``2031'';
(3) in subsection (d), in the matter preceding paragraph 
(1), by striking ``2025'' and inserting ``2031''; and
(4) in subsection (g)--
(A) by striking ``subparagraph (F) of section 
1111(19)'' and inserting ``paragraph (19)(A)(vi) of 
section 1111''; and
(B) by striking ``2012 through 2016'' each place it 
appears and inserting ``2017 through 2021''.
SEC. 10305. AGRICULTURE RISK COVERAGE.

Section 1117 of the Agricultural Act of 2014 (7 U.S.C. 9017) is 
amended--
(1) in subsection (a), in the matter preceding paragraph 
(1), by striking ``2023'' and inserting ``2031'';
(2) in subsection (c)--
(A) in paragraph (1), by inserting ``for each of the 
2014 through 2024 crop years and 90 percent of the 
benchmark revenue for each of the 2025 through 2031 crop 
years'' before the period at the end;
(B) by striking ``2023'' each place it appears and 
inserting ``2031''; and
(C) in paragraph (4)(B), in the subparagraph 
heading, by striking ``2023'' and inserting ``2031'';
(3) in subsection (d)(1), by striking subparagraph (B) and 
inserting the following:

[[Page 139 STAT. 91]]

``(B)(i) for each of the 2014 through 2024 crop 
years, 10 percent of the benchmark revenue for the crop 
year applicable under subsection (c); and
``(ii) for each of the 2025 through 2031 crop years, 
12 percent of the benchmark revenue for the crop year 
applicable under subsection (c).''; and
(4) in subsections (e), (g)(5), and (i)(5), by striking 
``2023'' each place it appears and inserting ``2031''.
SEC. 10306. EQUITABLE TREATMENT OF CERTAIN ENTITIES.

(a) In General.--Section 1001 of the Food Security Act of 1985 (7 
U.S.C. 1308) is amended--
(1) in subsection (a)--
(A) by redesignating paragraph (5) as paragraph (6); 
and
(B) by inserting after paragraph (4) the following:
``(5) <<NOTE: Definition.>> Qualified pass-through entity.--
The term `qualified pass-through entity' means--
``(A) a partnership (within the meaning of 
subchapter K of chapter 1 of the Internal Revenue Code 
of 1986);
``(B) an S corporation (as defined in section 1361 
of that Code);
``(C) a limited liability company that does not 
affirmatively elect to be treated as a corporation; and
``(D) a joint venture or general partnership.'';
(2) in subsections (b) and (c), by striking ``except a joint 
venture or general partnership'' each place it appears and 
inserting ``except a qualified pass-through entity''; and
(3) in subsection (d), by striking ``subtitle B of title I 
of the Agricultural Act of 2014 or''.

(b) Attribution of Payments.--Section 1001(e)(3)(B)(ii) of the Food 
Security Act of 1985 (7 U.S.C. 1308(e)(3)(B)(ii)) is amended--
(1) in the clause heading, by striking ``joint ventures and 
general partnerships'' and inserting ``qualified pass-through 
entities'';
(2) by striking ``a joint venture or a general partnership'' 
and inserting ``a qualified pass-through entity'';
(3) by striking ``joint ventures and general partnerships'' 
and inserting ``qualified pass-through entities''; and
(4) by striking ``the joint venture or general partnership'' 
and inserting ``the qualified pass-through entity''.

(c) Persons Actively Engaged in Farming.--Section 1001A(b)(2) of the 
Food Security Act of 1985 (7 U.S.C. 1308-1(b)(2)) is amended--
(1) subparagraphs (A) and (B), by striking ``a general 
partnership, a participant in a joint venture'' each place it 
appears and inserting ``a qualified pass-through entity''; and
(2) in subparagraph (C), by striking ``a general 
partnership, joint venture, or similar entity'' and inserting 
``a qualified pass-through entity or a similar entity''.

(d) Joint and Several Liability.--Section 1001B(d) of the Food 
Security Act of 1985 (7 U.S.C. 1308-2(d)) is amended by striking 
``partnerships and joint ventures'' and inserting ``qualified pass-
through entities''.
(e) Exclusion From AGI Calculation.--Section 1001D(d) of the Food 
Security Act of 1985 (7 U.S.C. 1308-3a(d)) is amended

[[Page 139 STAT. 92]]

by striking ``, general partnership, or joint venture'' each place it 
appears.
SEC. 10307. PAYMENT LIMITATIONS.

Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is 
amended--
(1) in subsection (b)--
(A) by striking ``The'' and inserting ``Subject to 
subsection (i), the''; and
(B) by striking ``$125,000'' and inserting 
``$155,000'';
(2) in subsection (c)--
(A) by striking ``The'' and inserting ``Subject to 
subsection (i), the''; and
(B) by striking ``$125,000'' and inserting 
``$155,000''; and
(3) by adding at the end the following:

``(i) <<NOTE: Time periods.>> Adjustment.--For the 2025 crop year 
and each crop year thereafter, the Secretary shall annually adjust the 
amounts described in subsections (b) and (c) for inflation based on the 
Consumer Price Index for All Urban Consumers published by the Bureau of 
Labor Statistics of the Department of Labor.''.
SEC. 10308. ADJUSTED GROSS INCOME LIMITATION.

Section 1001D(b) of the Food Security Act of 1985 (7 U.S.C. 1308-
3a(b)) is amended--
(1) in paragraph (1), by striking ``paragraph (3)'' and 
inserting ``paragraphs (3) and (4)''; and
(2) by adding at the end the following:
``(4) Exception for certain operations.--
``(A) Definitions.--In this paragraph:
``(i) Excepted payment or benefit.--The term 
`excepted payment or benefit' means--
``(I) a payment or benefit under 
subtitle E of title I of the 
Agricultural Act of 2014 (7 U.S.C. 9081 
et seq.);
``(II) a payment or benefit under 
section 196 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 
U.S.C. 7333); and
``(III) a payment or benefit 
described in paragraph (2)(C) received 
on or after October 1, 2024.
``(ii) Farming, ranching, or silviculture 
activities.--The <<NOTE: Determination.>> term 
`farming, ranching, or silviculture activities' 
includes agri-tourism, direct-to-consumer 
marketing of agricultural products, the sale of 
agricultural equipment owned by the person or 
legal entity, and other agriculture-related 
activities, as determined by the Secretary.
``(B) Exception.--In the case of an excepted payment 
or benefit, the limitation established by paragraph (1) 
shall not apply to a person or legal entity during a 
crop, fiscal, or program year, as appropriate, if 
greater than or equal to 75 percent of the average gross 
income of the person or legal entity derives from 
farming, ranching, or silviculture activities.''.

[[Page 139 STAT. 93]]

SEC. 10309. MARKETING LOANS.

(a) Availability of Nonrecourse Marketing Assistance Loans for Loan 
Commodities.--Section 1201(b)(1) of the Agricultural Act of 2014 (7 
U.S.C. 9031(b)(1)) is amended by striking ``2023'' and inserting 
``2031''.
(b) Loan Rates for Nonrecourse Marketing Assistance Loans.--Section 
1202 of the Agricultural Act of 2014 (7 U.S.C. 9032) is amended--
(1) in subsection (b)--
(A) in the subsection heading, by striking ``2023'' 
and inserting ``2025''; and
(B) in the matter preceding paragraph (1), by 
striking ``2023'' and inserting ``2025'';
(2) by redesignating subsections (c) and (d) as subsections 
(d) and (e), respectively;
(3) by inserting after subsection (b) the following:

``(c) 2026 Through 2031 Crop Years.--For purposes of each of the 
2026 through 2031 crop years, the loan rate for a marketing assistance 
loan under section 1201 for a loan commodity shall be equal to the 
following:
``(1) In the case of wheat, $3.72 per bushel.
``(2) In the case of corn, $2.42 per bushel.
``(3) In the case of grain sorghum, $2.42 per bushel.
``(4) In the case of barley, $2.75 per bushel.
``(5) In the case of oats, $2.20 per bushel.
``(6) In the case of upland cotton, $0.55 per pound.
``(7) In the case of extra long staple cotton, $1.00 per 
pound.
``(8) In the case of long grain rice, $7.70 per 
hundredweight.
``(9) In the case of medium grain rice, $7.70 per 
hundredweight.
``(10) In the case of soybeans, $6.82 per bushel.
``(11) In the case of other oilseeds, $11.10 per 
hundredweight for each of the following kinds of oilseeds:
``(A) Sunflower seed.
``(B) Rapeseed.
``(C) Canola.
``(D) Safflower.
``(E) Flaxseed.
``(F) Mustard seed.
``(G) Crambe.
``(H) Sesame seed.
``(I) Other oilseeds designated by the Secretary.
``(12) In the case of dry peas, $6.87 per hundredweight.
``(13) In the case of lentils, $14.30 per hundredweight.
``(14) In the case of small chickpeas, $11.00 per 
hundredweight.
``(15) In the case of large chickpeas, $15.40 per 
hundredweight.
``(16) In the case of graded wool, $1.60 per pound.
``(17) In the case of nongraded wool, $0.55 per pound.
``(18) In the case of mohair, $5.00 per pound.
``(19) In the case of honey, $1.50 per pound.
``(20) In the case of peanuts, $390 per ton.'';
(4) in subsection (d) (as so redesignated), by striking 
``(a)(11) and (b)(11)'' and inserting ``(a)(11), (b)(11), and 
(c)(11)''; and

[[Page 139 STAT. 94]]

(5) in subsection (e) (as so redesignated), in paragraph 
(1), by striking ``$0.25'' and inserting ``$0.30''.

(c) Payment of Cotton Storage Costs.--Section 1204(g) of the 
Agricultural Act of 2014 (7 U.S.C. 9034(g)) is amended--
(1) by striking ``Effective'' and inserting the following:
``(1) Crop years 2014 through 2025.--Effective'';
(2) in paragraph (1) (as so designated), by striking 
``2023'' and inserting ``2025''; and
(3) by adding at the end the following:
``(2) <<NOTE: Time periods.>> Payment of cotton storage 
costs.--Effective for each of the 2026 through 2031 crop years, 
the Secretary shall make cotton storage payments for upland 
cotton and extra long staple cotton available in the same manner 
as the Secretary provided storage payments for the 2006 crop of 
upland cotton, except that the payment rate shall be equal to 
the lesser of--
``(A) the submitted storage charge for the current 
marketing year; and
``(B) in the case of storage in--

``(i) <<NOTE: California. Arizona.>> California or 
Arizona, a payment rate of $4.90; and
``(ii) any other State, a payment rate of 
$3.00.''.

(d) Loan Deficiency Payments.--
(1) Continuation.--Section 1205(a)(2)(B) of the Agricultural 
Act of 2014 (7 U.S.C. 9035(a)(2)(B)) is amended by striking 
``2023'' and inserting ``2031''.
(2) Payments in lieu of ldps.--Section 1206 of the 
Agricultural Act of 2014 (7 U.S.C. 9036) is amended, in 
subsections (a) and (d), by striking ``2023'' each place it 
appears and inserting ``2031''.

(e) Special Competitive Provisions for Extra Long Staple Cotton.--
Section 1208(a) of the Agricultural Act of 2014 (7 U.S.C. 9038(a)) is 
amended, in the matter preceding paragraph (1), by striking ``2026'' and 
inserting ``2032''.
(f) Availability of Recourse Loans.--Section 1209 of the 
Agricultural Act of 2014 (7 U.S.C. 9039) is amended, in subsections 
(a)(2), (b), and (c), by striking ``2023'' each place it appears and 
inserting ``2031''.
SEC. 10310. REPAYMENT OF MARKETING LOANS.

Section 1204 of the Agricultural Act of 2014 (7 U.S.C. 9034) is 
amended--
(1) in subsection (b)--
(A) by redesignating paragraph (1) as subparagraph 
(A) and indenting appropriately;
(B) in the matter preceding subparagraph (A) (as so 
redesignated), by striking ``The Secretary'' and 
inserting the following:
``(1) In general.--The Secretary''; and
(C) <<NOTE: Determinations.>> by striking paragraph 
(2) and inserting the following:
``(B)(i) in the case of long grain rice and medium 
grain rice, the prevailing world market price for the 
commodity, as determined and adjusted by the Secretary 
in accordance with this section; or

[[Page 139 STAT. 95]]

``(ii) in the case of upland cotton, the prevailing 
world market price for the commodity, as determined and 
adjusted by the Secretary in accordance with this 
section.
``(2) <<NOTE: Time period.>> Refund for upland cotton.--In 
the case of a repayment for a marketing assistance loan for 
upland cotton at a rate described in paragraph (1)(B)(ii), the 
Secretary shall provide to the producer a refund (if any) in an 
amount equal to the difference between the lowest prevailing 
world market price, as determined and adjusted by the Secretary 
in accordance with this section, during the 30-day period 
following the date on which the producer repays the marketing 
assistance loan and the repayment rate.'';
(2) in subsection (c)--
(A) by striking the period at the end and inserting 
``; and'';
(B) by striking ``at the loan rate'' and inserting 
the following: "at a rate that is the lesser of-- ``
``(1) the loan rate''; and
(C) by adding at the end the following:
``(2) the prevailing world market price for the commodity, 
as determined and adjusted by the Secretary in accordance with 
this section.'';
(3) in subsection (d)--
(A) in paragraph (1), by striking ``and medium grain 
rice'' and inserting ``medium grain rice, and extra long 
staple cotton'';
(B) by redesignating paragraphs (1) and (2) as 
subparagraphs (A) and (B), respectively, and indenting 
appropriately;
(C) in the matter preceding subparagraph (A) (as so 
redesignated), by striking ``For purposes'' and 
inserting the following:
``(1) In general.--For purposes''; and
(D) by adding at the end the following:
``(2) Upland cotton.--In the case of upland cotton, for any 
period when price quotations for Middling (M) 1\3/32\-inch 
cotton are available, the formula under paragraph (1)(A) shall 
be based on the average of the 3 lowest-priced growths that are 
quoted.''; and
(4) in subsection (e)--
(A) in the subsection heading, by inserting ``Extra 
Long Staple Cotton,'' after ``Upland Cotton,'';
(B) in paragraph (2)--
(i) in the paragraph heading, by inserting 
``Upland'' before ``Cotton''; and
(ii) in subparagraph (B), in the matter 
preceding clause (i), by striking ``2024'' and 
inserting ``2032'';
(C) by redesignating paragraph (3) as paragraph (4); 
and
(D) by inserting after paragraph (2) the following:
``(3) <<NOTE: Determinations.>> Extra long staple cotton.--
The prevailing world market price for extra long staple cotton 
determined under subsection (d)--
``(A) shall be adjusted to United States quality and 
location, with the adjustment to include the average 
costs to market the commodity, including average 
transportation costs, as determined by the Secretary; 
and

[[Page 139 STAT. 96]]

``(B) <<NOTE: Time period. Expiration date.>> may be 
further adjusted, during the period beginning on the 
date of enactment of the Act entitled `An Act to provide 
for reconciliation pursuant to title II of H. Con. Res. 
14' (119th Congress) and ending on July 31, 2032, if the 
Secretary determines the adjustment is necessary--
``(i) to minimize potential loan forfeitures;
``(ii) to minimize the accumulation of stocks 
of extra long staple cotton by the Federal 
Government;
``(iii) to ensure that extra long staple 
cotton produced in the United States can be 
marketed freely and competitively; and
``(iv) to ensure an appropriate transition 
between current-crop and forward-crop price 
quotations, except that the Secretary may use 
forward-crop price quotations prior to July 31 of 
a marketing year only if--
``(I) there are insufficient 
current-crop price quotations; and
``(II) the forward-crop price 
quotation is the lowest such quotation 
available.''.
SEC. 10311. ECONOMIC ADJUSTMENT ASSISTANCE FOR TEXTILE MILLS.

Section 1207(c) of the Agricultural Act of 2014 (7 U.S.C. 9037(c)) 
is amended by striking paragraph (2) and inserting the following:
``(2) Value of assistance.--The value of the assistance 
provided under paragraph (1) shall be--
``(A) <<NOTE: Time period.>> for the period 
beginning on August 1, 2013, and ending on July 31, 
2025, 3 cents per pound; and
``(B) <<NOTE: Effective date.>> beginning on August 
1, 2025, 5 cents per pound.''.
SEC. 10312. SUGAR PROGRAM UPDATES.

(a) Loan Rate Modifications.--Section 156 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7272) is amended--
(1) in subsection (a)--
(A) in paragraph (4), by striking ``and'' at the 
end;
(B) in paragraph (5), by striking ``2023 crop 
years.'' and inserting ``2024 crop years; and''; and
(C) by adding at the end the following:
``(6) 24.00 cents per pound for raw cane sugar for each of 
the 2025 through 2031 crop years.'';
(2) in subsection (b)--
(A) in paragraph (1), by striking ``and'' at the 
end;
(B) in paragraph (2), by striking ``2023 crop 
years.'' and inserting ``2024 crop years; and''; and
(C) by adding at the end the following:
``(3) a rate that is equal to 136.55 percent of the loan 
rate per pound of raw cane sugar under subsection (a)(6) for 
each of the 2025 through 2031 crop years.''; and
(3) in subsection (i), by striking ``2023'' and inserting 
``2031''.

(b) Adjustments to Commodity Credit Corporation Storage Rates.--
Section 167 of the Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7287) is amended--
(1) by striking subsection (a) and inserting the following:

``(a) <<NOTE: Time period.>> In General.--For the 2025 crop year and 
each subsequent crop year, the Commodity Credit Corporation shall 
establish rates

[[Page 139 STAT. 97]]

for the storage of forfeited sugar in an amount that is not less than--
``(1) in the case of refined sugar, 34 cents per 
hundredweight per month; and
``(2) in the case of raw cane sugar, 27 cents per 
hundredweight per month.''; and
(2) in subsection (b)--
(A) in the subsection heading, by striking 
``Subsequent'' and inserting ``Prior''; and
(B) by striking ``and subsequent'' and inserting 
``through 2024''.

(c) Modernizing Beet Sugar Allotments.--
(1) Sugar estimates.--Section 359b(a)(1) of the Agricultural 
Adjustment Act of 1938 (7 U.S.C. 1359bb(a)(1)) is amended by 
striking ``2023'' and inserting ``2031''.
(2) Allocation to processors.--Section 359c(g)(2) of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359cc(g)(2)) is 
amended--
(A) by striking ``In the case'' and inserting the 
following:
``(A) In general.--Except as provided in 
subparagraph (B), in the case''; and
(B) by adding at the end the following:
``(B) Exception.--If the Secretary makes an upward 
adjustment under paragraph (1)(A), in adjusting 
allocations among beet sugar processors, the Secretary 
shall give priority to beet sugar processors with 
available sugar.''.
(3) Timing of reassignment.--Section 359e(b)(2) of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ee(b)(2)) is 
amended--
(A) by redesignating subparagraphs (A) through (C) 
as clauses (i) through (iii), respectively, and 
indenting appropriately;
(B) in the matter preceding clause (i) (as so 
redesignated), by striking ``If the Secretary'' and 
inserting the following:
``(A) In general.--If the Secretary''; and
(C) by adding at the end the following:
``(B) Timing.--In carrying out subparagraph (A), the 
Secretary shall--
``(i) <<NOTE: Determination.>> make an initial 
determination based on the World Agricultural 
Supply and Demand Estimates approved by the World 
Agricultural Outlook Board for January that shall 
be applicable to the crop year for which 
allotments are required; and
``(ii) <<NOTE: Deadline.>> provide for an 
initial reassignment under subparagraph (A)(i) not 
later than 30 days after the date on which the 
World Agricultural Supply and Demand Estimates 
described in clause (i) is released.''.

(d) Reallocations of Tariff-rate Quota Shortfall.--Section 359k of 
the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359kk) is amended by 
adding at the end the following:
``(c) Reallocation.--
``(1) Initial reallocation.--Subject to paragraph (3), 
following the establishment of the tariff-rate quotas under 
subsection (a) for a quota year, the Secretary shall--

[[Page 139 STAT. 98]]

``(A) <<NOTE: Determination.>> determine which 
countries do not intend to fulfill their allocation for 
the quota year; and
``(B) reallocate any forecasted shortfall in the 
fulfillment of the tariff-rate quotas as soon as 
practicable.
``(2) <<NOTE: Deadline.>> Subsequent reallocation.--Subject 
to paragraph (3), not later than March 1 of a quota year, the 
Secretary shall reallocate any additional forecasted shortfall 
in the fulfillment of the tariff-rate quotas for raw cane sugar 
established under subsection (a)(1) for that quota year.
``(3) Cessation of effectiveness.--Paragraphs (1) and (2) 
shall cease to be in effect if--
``(A) the Agreement Suspending the Countervailing 
Duty Investigation on Sugar from Mexico, signed December 
19, 2014, is terminated; and
``(B) no countervailing duty order under subtitle A 
of title VII of the Tariff Act of 1930 (19 U.S.C. 1671 
et seq.) is in effect with respect to sugar from Mexico.

``(d) Refined Sugar.--
``(1) Definition of domestic sugar industry.--In this 
subsection, the term `domestic sugar industry' means domestic--
``(A) sugar beet producers and processors;
``(B) producers and processors of sugar cane; and
``(C) refiners of raw cane sugar.
``(2) Study required.--
``(A) <<NOTE: Deadline.>> In general.--Not later 
than 180 days after the date of enactment of this 
subsection, the Secretary shall conduct a study on 
whether the establishment of additional terms and 
conditions with respect to refined sugar imports is 
necessary and appropriate.
``(B) Elements.--In conducting the study under 
subparagraph (A), the Secretary shall examine the 
following:
``(i) The need for--
``(I) defining `refined sugar' as 
having a minimum polarization of 99.8 
degrees or higher;
``(II) establishing a standard for 
color- or reflectance-based units for 
refined sugar such as those utilized by 
the International Commission of Uniform 
Methods of Sugar Analysis;
``(III) prescribing specifications 
for packaging type for refined sugar;
``(IV) prescribing specifications 
for transportation modes for refined 
sugar;
``(V) requiring evidence that sugar 
imported as refined sugar will not 
undergo further refining in the United 
States;
``(VI) prescribing appropriate terms 
and conditions to avoid unlawful sugar 
imports; and
``(VII) establishing other 
definitions, terms and conditions, or 
other requirements.
``(ii) The potential impact of modifications 
described in each of subclauses (I) through (VII) 
of clause (i) on the domestic sugar industry.
``(iii) Whether, based on the needs described 
in clause (i) and the impact described in clause 
(ii), the

[[Page 139 STAT. 99]]

establishment of additional terms and conditions 
is appropriate.
``(C) Consultation.--In conducting the study under 
subparagraph (A), the Secretary shall consult with 
representatives of the domestic sugar industry and users 
of refined sugar.
``(D) Report.--Not later than 1 year after the date 
of enactment of this subsection, the Secretary shall 
submit to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate a report that 
describes the findings of the study conducted under 
subparagraph (A).
``(3) Establishment of additional terms and conditions 
permitted.--
``(A) <<NOTE: Notice. Regulations.>> In general.--
Based on the findings in the report submitted under 
paragraph (2)(D), and after providing notice to the 
Committee on Agriculture of the House of Representatives 
and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate, the Secretary may issue 
regulations in accordance with subparagraph (B) to 
establish additional terms and conditions with respect 
to refined sugar imports that are necessary and 
appropriate.
``(B) Promulgation of regulations.--The Secretary 
may issue regulations under subparagraph (A) if the 
regulations--
``(i) do not have an adverse impact on the 
domestic sugar industry; and
``(ii) are consistent with the requirements of 
this part, section 156 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 
7272), and obligations under international trade 
agreements that have been approved by Congress.''.

(e) Clarification of Tariff-rate Quota Adjustments.--Section 
359k(b)(1) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1359kk(b)(1)) is amended, in the matter preceding subparagraph (A), by 
striking ``if there is an'' and inserting ``for the sole purpose of 
responding directly to an''.
(f) Period of Effectiveness.--Section 359l(a) of the Agricultural 
Adjustment Act of 1938 (7 U.S.C. 1359ll(a)) is amended by striking 
``2023'' and inserting ``2031''.
SEC. 10313. DAIRY POLICY UPDATES.

(a) Dairy Margin Coverage Production History.--
(1) Definition.--Section 1401(8) of the Agricultural Act of 
2014 (7 U.S.C. 9051(8)) is amended by striking ``when the 
participating dairy operation first registers to participate in 
dairy margin coverage''.
(2) Production history of participating dairy operations.--
Section 1405 of the Agricultural Act of 2014 (7 U.S.C. 9055) is 
amended by striking subsections (a) and (b) and inserting the 
following:

``(a) <<NOTE: Time periods.>> Production History.--Except as 
provided in subsection (b), the production history of a dairy operation 
for dairy margin coverage is equal to the highest annual milk marketings 
of the participating dairy operation during any 1 of the 2021, 2022, or 
2023 calendar years.

[[Page 139 STAT. 100]]

``(b) Election by New Dairy Operations.--In the case of a 
participating dairy operation that has been in operation for less than a 
year, the participating dairy operation shall elect 1 of the following 
methods for the Secretary to determine the production history of the 
participating dairy operation:
``(1) The volume of the actual milk marketings for the 
months the participating dairy operation has been in operation 
extrapolated to a yearly amount.
``(2) <<NOTE: Estimate.>> An estimate of the actual milk 
marketings of the participating dairy operation based on the 
herd size of the participating dairy operation relative to the 
national rolling herd average data published by the 
Secretary.''.

(b) Dairy Margin Coverage Payments.--Section 1406(a)(1)(C) of the 
Agricultural Act of 2014 (7 U.S.C. 9056(a)(1)(C)) is amended by striking 
``5,000,000'' each place it appears and inserting ``6,000,000''.
(c) Premiums for Dairy Margins.--
(1) Tier i.--Section 1407(b) of the Agricultural Act of 2014 
(7 U.S.C. 9057(b)) is amended--
(A) in the subsection heading, by striking 
``5,000,000'' and inserting ``6,000,000''; and
(B) in paragraph (1), by striking ``5,000,000'' and 
inserting ``6,000,000''.
(2) Tier ii.--Section 1407(c) of the Agricultural Act of 
2014 (7 U.S.C. 9057(c)) is amended--
(A) in the subsection heading, by striking 
``5,000,000'' and inserting ``6,000,000''; and
(B) in paragraph (1), by striking ``5,000,000'' and 
inserting ``6,000,000''.
(3) Premium discounts.--Section 1407(g) of the Agricultural 
Act of 2014 (7 U.S.C. 9057(g)) is amended--
(A) in paragraph (1)--
(i) by striking ``2019 through 2023'' and 
inserting ``2026 through 2031''; and
(ii) by striking ``January 2019'' and 
inserting ``January 2026''; and
(B) in paragraph (2), by striking ``2023'' each 
place it appears and inserting ``2031''.

(d) Duration.--Section 1409 of the Agricultural Act of 2014 (7 
U.S.C. 9059) is amended by striking ``2025'' and inserting ``2031''.
SEC. 10314. IMPLEMENTATION.

Section 1614(c) of the Agricultural Act of 2014 (7 U.S.C. 9097(c)) 
is amended by adding at the end the following:
``(5) Further funding.--The Secretary shall make available 
to carry out subtitle C of title I of the Act entitled `An Act 
to provide for reconciliation pursuant to title II of H. Con. 
Res. 14' (119th Congress) and the amendments made by that 
subtitle $50,000,000, to remain available until expended, of 
which--
``(A) not less than $5,000,000 shall be used to 
carry out paragraphs (3) and (4) of subsection (b);
``(B) $3,000,000 shall be used for activities 
described in paragraph (3)(A);
``(C) $3,000,000 shall be used for activities 
described in paragraph (3)(B);
``(D) $9,000,000 shall be used--

[[Page 139 STAT. 101]]

``(i) <<NOTE: Surveys.>> to carry out 
mandatory surveys of dairy production cost and 
product yield information to be reported by 
manufacturers required to report under section 273 
of the Agricultural Marketing Act of 1946 (7 
U.S.C. 1637b), for all products processed in the 
same facility or facilities; and
``(ii) <<NOTE: Publication. Time period.>> to 
publish the results of such surveys biennially; 
and
``(E) <<NOTE: Study.>> $1,000,000 shall be used to 
conduct the study under subsection (d) of section 359k 
of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1359kk).''.

Subtitle D-- <<NOTE: Determinations.>> Disaster Assistance Programs
SEC. 10401. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.

(a) Livestock Indemnity Payments.--Section 1501(b) of the 
Agricultural Act of 2014 (7 U.S.C. 9081(b)) is amended--
(1) by striking paragraph (2) and inserting the following:
``(2) Payment rates.--
``(A) Losses due to predation.--Indemnity payments 
to an eligible producer on a farm under paragraph (1)(A) 
shall be made at a rate of 100 percent of the market 
value of the affected livestock on the applicable date, 
as determined by the Secretary.
``(B) Losses due to adverse weather or disease.--
Indemnity payments to an eligible producer on a farm 
under subparagraph (B) or (C) of paragraph (1) shall be 
made at a rate of 75 percent of the market value of the 
affected livestock on the applicable date, as determined 
by the Secretary.
``(C) Determination of market value.--In determining 
the market value described in subparagraphs (A) and (B), 
the Secretary may consider the ability of eligible 
producers to document regional price premiums for 
affected livestock that exceed the national average 
market price for those livestock.
``(D) Applicable date defined.--In this paragraph, 
the term `applicable date' means, with respect to 
livestock, as applicable--
``(i) the day before the date of death of the 
livestock; or
``(ii) the day before the date of the event 
that caused the harm to the livestock that 
resulted in a reduced sale price.''; and
(2) by adding at the end the following:
``(5) Additional payment for unborn livestock.--
``(A) <<NOTE: Effective date.>> In general.--In the 
case of unborn livestock death losses incurred on or 
after January 1, 2024, the Secretary shall make an 
additional payment to eligible producers on farms that 
have incurred such losses in excess of the normal 
mortality due to a condition specified in paragraph (1).
``(B) Payment rate.--Additional payments under 
subparagraph (A) shall be made at a rate--
``(i) determined by the Secretary; and

[[Page 139 STAT. 102]]

``(ii) less than or equal to 85 percent of the 
payment rate established with respect to the 
lowest weight class of the livestock, as 
determined by the Secretary, acting through the 
Administrator of the Farm Service Agency.
``(C) Payment amount.--The amount of a payment to an 
eligible producer that has incurred unborn livestock 
death losses shall be equal to the payment rate 
determined under subparagraph (B) multiplied, in the 
case of livestock described in--
``(i) subparagraph (A), (B), or (F) of 
subsection (a)(4), by 1;
``(ii) subparagraph (D) of such subsection, by 
2;
``(iii) subparagraph (E) of such subsection, 
by 12; and
``(iv) subparagraph (G) of such subsection, by 
the average number of birthed animals (for one 
gestation cycle) for the species of each such 
livestock, as determined by the Secretary.
``(D) Unborn livestock death losses defined.--In 
this paragraph, the term `unborn livestock death losses' 
means losses of any livestock described in subparagraph 
(A), (B), (D), (E), (F), or (G) of subsection (a)(4) 
that was gestating on the date of the death of the 
livestock.''.

(b) <<NOTE: Time periods. Payments.>> Livestock Forage Disaster 
Program.--Section 1501(c)(3)(D)(ii)(I) of the Agricultural Act of 2014 
(7 U.S.C. 9081(c)(3)(D)(ii)(I)) is amended--
(1) by striking ``1 monthly payment'' and inserting ``2 
monthly payments''; and
(2) by striking ``county for at least 8 consecutive'' and 
inserting the following: "county for not less than-- ``
``(aa) 4 consecutive weeks 
during the normal grazing period 
for the county, as determined by 
the Secretary, shall be eligible 
to receive assistance under this 
paragraph in an amount equal to 
1 monthly payment using the 
monthly payment rate determined 
under subparagraph (B); or
``(bb) 7 of the previous 8 
consecutive''.

(c) Emergency Assistance for Livestock, Honey Bees, and Farm-raised 
Fish.--
(1) In general.--Section 1501(d) of the Agricultural Act of 
2014 (7 U.S.C. 9081(d)) is amended by adding at the end the 
following:
``(5) Assistance for losses due to bird depredation.--
``(A) Definition of farm-raised fish.--In this 
paragraph, the term `farm-raised fish' means fish 
propagated and reared in a controlled fresh water 
environment.
``(B) Payments.--Eligible producers of farm-raised 
fish, including fish grown as food for human 
consumption, shall be eligible to receive payments under 
this subsection to aid in the reduction of losses due to 
piscivorous birds.
``(C) Payment rate.--
``(i) In general.--The payment rate for 
payments under subparagraph (B) shall be 
determined by the Secretary, taking into account--
``(I) costs associated with the 
deterrence of piscivorous birds;

[[Page 139 STAT. 103]]

``(II) the value of lost fish and 
revenue due to bird depredation; and
``(III) costs associated with 
disease loss from bird depredation.
``(ii) Minimum rate.--The payment rate for 
payments under subparagraph (B) shall be not less 
than $600 per acre of farm-raised fish.
``(D) Payment amount.--The amount of a payment under 
subparagraph (B) shall be the product obtained by 
multiplying--
``(i) the applicable payment rate under 
subparagraph (C); and
``(ii) 85 percent of the total number of acres 
of farm-raised fish farms that the eligible 
producer has in production for the calendar 
year.''.
(2) <<NOTE: 7 USC 9081 note.>> Emergency assistance for 
honeybees.--In determining honeybee colony losses eligible for 
assistance under section 1501(d) of the Agricultural Act of 2014 
(7 U.S.C. 9081(d)), the Secretary shall utilize a normal 
mortality rate of 15 percent.

(d) Tree Assistance Program.--Section 1501(e) of the Agricultural 
Act of 2014 (7 U.S.C. 9081(e)) is amended--
(1) in paragraph (2)(B), by striking ``15 percent (adjusted 
for normal mortality)'' and inserting ``normal mortality''; and
(2) in paragraph (3)--
(A) in subparagraph (A)(i), by striking ``15 percent 
mortality (adjusted for normal mortality)'' and 
inserting ``normal mortality''; and
(B) in subparagraph (B)--
(i) by striking ``50'' and inserting ``65''; 
and
(ii) by striking ``15 percent damage or 
mortality (adjusted for normal tree damage and 
mortality)'' and inserting ``normal tree damage or 
mortality''.

Subtitle E--Crop Insurance

SEC. 10501. BEGINNING FARMER AND RANCHER BENEFIT.

(a) Definitions.--
(1) In general.--Section 502(b)(3) of the Federal Crop 
Insurance Act (7 U.S.C. 1502(b)(3)) is amended by striking ``5'' 
and inserting ``10''.
(2) Conforming amendment.--Section 522(c)(7) of the Federal 
Crop Insurance Act (7 U.S.C. 1522(c)(7)) is amended by striking 
subparagraph (F).

(b) Increase in Assistance.--Section 508(e) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(e)) is amended by adding at the end the 
following:
``(9) Additional support.--
``(A) In general.--In addition to any other 
provision of this subsection (except paragraph (2)(A)) 
regarding payment of a portion of premiums, a beginning 
farmer or rancher shall receive additional premium 
assistance that is the number of percentage points 
specified in subparagraph (B) greater than the premium 
assistance that would otherwise be available for the 
applicable policy, plan of

[[Page 139 STAT. 104]]

insurance, and coverage level selected by the beginning 
farmer or rancher.
``(B) <<NOTE: Time periods.>> Percentage points 
adjustments.--The percentage points referred to in 
subparagraph (A) are the following:
``(i) For each of the first and second 
reinsurance years that a beginning farmer or 
rancher participates as a beginning farmer or 
rancher in the applicable policy or plan of 
insurance, 5 percentage points.
``(ii) For the third reinsurance year that a 
beginning farmer or rancher participates as a 
beginning farmer or rancher in the applicable 
policy or plan of insurance, 3 percentage points.
``(iii) For the fourth reinsurance year that a 
beginning farmer or rancher participates as a 
beginning farmer or rancher in the applicable 
policy or plan of insurance, 1 percentage 
point.''.
SEC. 10502. AREA-BASED CROP INSURANCE COVERAGE AND AFFORDABILITY.

(a) Coverage Level.--Section 508(c)(4) of the Federal Crop Insurance 
Act (7 U.S.C. 1508(c)(4)) is amended--
(1) in subparagraph (A), by striking clause (ii) and 
inserting the following:
``(ii) may be purchased at any level not to 
exceed--
``(I) in the case of the individual 
yield or revenue coverage, 85 percent;
``(II) in the case of individual 
yield or revenue coverage aggregated 
across multiple commodities, 90 percent; 
and
``(III) in the case of area yield or 
revenue coverage (as determined by the 
Corporation), 95 percent.''; and
(2) in subparagraph (C)--
(A) in clause (ii), by striking ``14'' and inserting 
``10''; and
(B) in clause (iii)(I), by striking ``86'' and 
inserting ``90''.

(b) Premium Subsidy.--Section 508(e)(2)(H)(i) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(e)(2)(H)(i)) is amended by striking ``65'' 
and inserting ``80''.
SEC. 10503. <<NOTE: Effective dates.>> ADMINISTRATIVE AND 
OPERATING EXPENSE ADJUSTMENTS.

Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)) 
is amended by adding at the end the following:
``(10) Additional expenses.--
``(A) <<NOTE: Payment.>> In general.--Beginning with 
the 2026 reinsurance year, and for each reinsurance year 
thereafter, in addition to the terms and conditions of 
the Standard Reinsurance Agreement, to cover additional 
expenses for loss adjustment procedures, the Corporation 
shall pay an additional administrative and operating 
expense subsidy to approved insurance providers for 
eligible contracts.
``(B) <<NOTE: Contracts.>> Payment amount.--In the 
case of an eligible contract, the payment to an approved 
insurance provider required under subparagraph (A) shall 
be the amount equal to 6 percent of the net book 
premium.

[[Page 139 STAT. 105]]

``(C) Definitions.--In this paragraph:
``(i) Eligible contract.--The term `eligible 
contract'--
``(I) means a crop insurance 
contract entered into by an approved 
insurance provider in an eligible State; 
and
``(II) does not include a contract 
for--
``(aa) catastrophic risk 
protection under subsection (b);
``(bb) an area-based plan of 
insurance or similar plan of 
insurance, as determined by the 
Corporation; or
``(cc) a policy under which 
an approved insurance provider 
does not incur loss adjustment 
expenses, as determined by the 
Corporation.
``(ii) Eligible state.--The term `eligible 
State' means a State in which, with respect to an 
insurance year, the loss ratio for eligible 
contracts is greater than 120 percent of the total 
net book premium written by all approved insurance 
providers.
``(11) Specialty crops.--
``(A) Minimum reimbursement.--Beginning with the 
2026 reinsurance year, and for each reinsurance year 
thereafter, the rate of reimbursement to approved 
insurance providers and agents for administrative and 
operating expenses with respect to crop insurance 
contracts covering agricultural commodities described in 
section 101 of the Specialty Crops Competitiveness Act 
of 2004 (7 U.S.C. 1621 note; Public Law 108-465) shall 
be equal to or greater than the percentage that is the 
greater of the following:
``(i) 17 percent of the premium used to define 
loss ratio.
``(ii) The percent of the premium used to 
define loss ratio that is otherwise applicable for 
the reinsurance year under the terms of the 
Standard Reinsurance Agreement in effect for the 
reinsurance year.
``(B) Other contracts.--In carrying out subparagraph 
(A), the Corporation shall not reduce, with respect to 
any reinsurance year, the amount or the rate of 
reimbursement to approved insurance providers and agents 
under the Standard Reinsurance Agreement described in 
clause (ii) of such subparagraph for administrative and 
operating expenses with respect to contracts covering 
agricultural commodities that are not subject to such 
subparagraph.
``(C) Administration.--The requirements of this 
paragraph and the adjustments made pursuant to this 
paragraph shall not be considered a renegotiation under 
paragraph (8)(A).
``(12) A&O inflation adjustment.--
``(A) In general.-- 
<<NOTE: Reimbursements.>> Subject to subparagraph (B), 
beginning with the 2026 reinsurance year, and for each 
reinsurance year thereafter, the Corporation shall 
increase the total administrative and operating expense 
reimbursements otherwise required under the Standard 
Reinsurance Agreement in effect for the reinsurance year 
in order to account for inflation, in a manner 
consistent with the increases

[[Page 139 STAT. 106]]

provided with respect to the 2011 through 2015 
reinsurance years under the enclosure included in Risk 
Management Agency Bulletin numbered MGR-10-007 and dated 
June 30, 2010.
``(B) Special rule for 2026 reinsurance year.--The 
increase under subparagraph (A) for the 2026 reinsurance 
year shall not exceed the percentage change for the 
preceding reinsurance year included in the Consumer 
Price Index for All Urban Consumers published by the 
Bureau of Labor Statistics of the Department of Labor.
``(C) Administration.--An increase under 
subparagraph (A)--
``(i) <<NOTE: Applicability. Contracts. Time 
period.>> shall apply with respect to all 
contracts covering agricultural commodities that 
were subject to an increase during the period of 
the 2011 through 2015 reinsurance years under the 
enclosure referred to in that subparagraph; and
``(ii) shall not be considered a renegotiation 
under paragraph (8)(A).''.
SEC. 10504. PREMIUM SUPPORT.

Section 508(e)(2) of the Federal Crop Insurance Act (7 U.S.C. 
1508(e)(2)) is amended--
(1) in subparagraph (C)(i), by striking ``64'' and inserting 
``69'';
(2) in subparagraph (D)(i), by striking ``59'' and inserting 
``64'';
(3) in subparagraph (E)(i), by striking ``55'' and inserting 
``60'';
(4) in subparagraph (F)(i), by striking ``48'' and inserting 
``51''; and
(5) in subparagraph (G)(i), by striking ``38'' and inserting 
``41''.
SEC. 10505. PROGRAM COMPLIANCE AND INTEGRITY.

Section 515(l)(2) of the Federal Crop Insurance Act (7 U.S.C. 
1515(l)(2)) is amended by striking ``than'' and all that follows through 
the period at the end and inserting the following: ``than--
``(A) $4,000,000 for each of fiscal years 2009 
through 2025; and
``(B) $6,000,000 for fiscal year 2026 and each 
subsequent fiscal year.''.
SEC. 10506. REVIEWS, COMPLIANCE, AND INTEGRITY.

Section 516(b)(2)(C)(i) of the Federal Crop Insurance Act (7 U.S.C. 
1516(b)(2)(C)(i)) is amended, in the matter preceding subclause (I), by 
striking ``for each fiscal year'' and inserting ``for each of fiscal 
years 2014 through 2025 and $10,000,000 for fiscal year 2026 and each 
fiscal year thereafter''.
SEC. 10507. POULTRY INSURANCE PILOT PROGRAM.

Section 523 of the Federal Crop Insurance Act (7 U.S.C. 1523) is 
amended by adding at the end the following:
``(j) Poultry Insurance Pilot Program.--
``(1) <<NOTE: Determination.>> In general.--Notwithstanding 
subsection (a)(2), the Corporation shall establish a pilot 
program under which contract poultry growers, including growers 
of broilers and laying hens, may elect to receive index-based 
insurance from extreme

[[Page 139 STAT. 107]]

weather-related risk resulting in increased utility costs 
(including costs of natural gas, propane, electricity, water, 
and other appropriate costs, as determined by the Corporation) 
associated with poultry production.
``(2) Stakeholder engagement.--The Corporation shall engage 
with poultry industry stakeholders in establishing the pilot 
program under paragraph (1).
``(3) <<NOTE: Evaluation.>> Location.--The pilot program 
established under paragraph (1) shall be conducted in a 
sufficient number of counties to provide a comprehensive 
evaluation of the feasibility, effectiveness, and demand among 
producers in the top poultry producing States, as determined by 
the Corporation.
``(4) Approval of policy or plan.--Notwithstanding section 
508(l), the Board shall approve a policy or plan of insurance 
based on the pilot program under paragraph (1)--
``(A) in accordance with section 508(h); and
``(B) <<NOTE: Deadline.>> not later than 2 years 
after the date of enactment of this subsection.''.

Subtitle F-- <<NOTE: Time periods.>> Additional Investments in Rural 
America
SEC. 10601. CONSERVATION.

(a) In General.--Section 1241(a) of the Food Security Act of 1985 
(16 U.S.C. 3841(a)) is amended--
(1) in paragraph (2), by striking subparagraphs (A) through 
(F) and inserting the following:
``(A) $625,000,000 for fiscal year 2026;
``(B) $650,000,000 for fiscal year 2027;
``(C) $675,000,000 for fiscal year 2028;
``(D) $700,000,000 for fiscal year 2029;
``(E) $700,000,000 for fiscal year 2030; and
``(F) $700,000,000 for fiscal year 2031.''; and
(2) in paragraph (3)--
(A) in subparagraph (A), by striking clauses (i) 
through (v) and inserting the following:
``(i) $2,655,000,000 for fiscal year 2026;
``(ii) $2,855,000,000 for fiscal year 2027;
``(iii) $3,255,000,000 for fiscal year 2028;
``(iv) $3,255,000,000 for fiscal year 2029;
``(v) $3,255,000,000 for fiscal year 2030; and
``(vi) $3,255,000,000 for fiscal year 2031; 
and''; and
(B) in subparagraph (B), by striking clauses (i) 
through (v) and inserting the following:
``(i) $1,300,000,000 for fiscal year 2026;
``(ii) $1,325,000,000 for fiscal year 2027;
``(iii) $1,350,000,000 for fiscal year 2028;
``(iv) $1,375,000,000 for fiscal year 2029;
``(v) $1,375,000,000 for fiscal year 2030; and
``(vi) $1,375,000,000 for fiscal year 2031.''.

(b) Regional Conservation Partnership Program.--Section 1271D of the 
Food Security Act of 1985 (16 U.S.C. 3871d) is amended by striking 
subsection (a) and inserting the following:
``(a) Availability of Funding.--Of the funds of the Commodity Credit 
Corporation, the Secretary shall use to carry out the program, to the 
maximum extent practicable--

[[Page 139 STAT. 108]]

``(1) $425,000,000 for fiscal year 2026;
``(2) $450,000,000 for fiscal year 2027;
``(3) $450,000,000 for fiscal year 2028;
``(4) $450,000,000 for fiscal year 2029;
``(5) $450,000,000 for fiscal year 2030; and
``(6) $450,000,000 for fiscal year 2031.''.

(c) Grassroots Source Water Protection Program.--Section 1240O(b) of 
the Food Security Act of 1985 (16 U.S.C. 3839bb-2(b)) is amended--
(1) in paragraph (1), by striking ``2023'' and inserting 
``2031''; and
(2) in paragraph (3)--
(A) in subparagraph (A), by striking ``and'' at the 
end;
(B) in subparagraph (B), by striking the period at 
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(C) <<NOTE: Effective date.>> $1,000,000 beginning 
in fiscal year 2026, to remain available until 
expended.''.

(d) Voluntary Public Access and Habitat Incentive Program.--Section 
1240R(f)(1) of the Food Security Act of 1985 (16 U.S.C. 3839bb-5(f)(1)) 
is amended--
(1) by striking ``2023, and'' and inserting ``2023,''; and
(2) by inserting ``, and $70,000,000 for the period of 
fiscal years 2025 through 2031'' before the period at the end.

(e) Watershed Protection and Flood Prevention.--Section 15 of the 
Watershed Protection and Flood Prevention Act (16 U.S.C. 1012a) is 
amended by striking ``$50,000,000 for fiscal year 2019 and each fiscal 
year thereafter'' and inserting ``$150,000,000 for fiscal year 2026 and 
each fiscal year thereafter, to remain available until expended''.
(f) Feral Swine Eradication and Control Pilot Program.--Section 
2408(g)(1) of the Agriculture Improvement Act of 2018 (7 U.S.C. 8351 
note; Public Law 115-334) is amended--
(1) by striking ``2023 and'' and inserting ``2023,''; and
(2) by inserting ``, and $105,000,000 for the period of 
fiscal years 2025 through 2031'' before the period at the end.

(g) Rescission.--The unobligated balances of amounts appropriated by 
section 21001(a) of Public Law 117-169 (136 Stat. 2015) are rescinded.
SEC. 10602. <<NOTE: 7 USC 5623a.>> SUPPLEMENTAL AGRICULTURAL TRADE 
PROMOTION PROGRAM.

(a) In General.--The Secretary of Agriculture shall carry out a 
program to encourage the accessibility, development, maintenance, and 
expansion of commercial export markets for United States agricultural 
commodities.
(b) Funding.--Of the funds of the Commodity Credit Corporation, the 
Secretary of Agriculture shall make available to carry out this section 
$285,000,000 for fiscal year 2027 and each fiscal year thereafter.
SEC. 10603. NUTRITION.

Section 203D(d)(5) of the Emergency Food Assistance Act of 1983 (7 
U.S.C. 7507(d)(5)) is amended by striking ``2024'' and inserting 
``2031''.

[[Page 139 STAT. 109]]

SEC. 10604. RESEARCH.

(a) Urban, Indoor, and Other Emerging Agricultural Production 
Research, Education, and Extension Initiative.--Section 1672E(d)(1)(B) 
of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
5925g(d)(1)(B)) is amended by striking ``fiscal year 2024, to remain 
available until expended'' and inserting ``each of fiscal years 2024 
through 2031''.
(b) Foundation for Food and Agriculture Research.--Section 
7601(g)(1)(A) of the Agricultural Act of 2014 (7 U.S.C. 5939(g)(1)(A)) 
is amended by adding at the end the following:
``(iv) <<NOTE: Deadline. Transfer.>> Further 
funding.--Not later than 30 days after the date of 
enactment of this clause, of the funds of the 
Commodity Credit Corporation, the Secretary shall 
transfer to the Foundation to carry out this 
section $37,000,000, to remain available until 
expended.''.

(c) Scholarships for Students at 1890 Institutions.--Section 
1446(b)(1) of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3222a(b)(1)) is amended by adding 
at the end the following:
``(C) Further funding.--Of the funds of the 
Commodity Credit Corporation, the Secretary shall make 
available to carry out this section $60,000,000 for 
fiscal year 2026, to remain available until expended.''.

(d) Assistive Technology Program for Farmers With Disabilities.--
Section 1680 of the Food, Agriculture, Conservation, and Trade Act of 
1990 (7 U.S.C. 5933) is amended--
(1) in subsection (c)(2), by inserting ``and subsection 
(d)'' after ``paragraph (1)''; and
(2) by adding at the end the following:

``(d) Mandatory Funding.--Subject to subsection (c)(2), of the funds 
of the Commodity Credit Corporation, the Secretary shall use to carry 
out this section $8,000,000 for fiscal year 2026, to remain available 
until expended.''.
(e) Specialty Crop Research Initiative.--Section 412(k)(1)(B) of the 
Agricultural Research, Extension, and Education Reform Act of 1998 (7 
U.S.C. 7632(k)(1)(B)) is amended by striking ``section $80,000,000 for 
fiscal year 2014'' and inserting the following: ``section--
``(i) $80,000,000 for each of fiscal years 
2014 through 2025; and
``(ii) $175,000,000 for fiscal year 2026''.

(f) Research Facilities Act.--Section 6 of the Research Facilities 
Act (7 U.S.C. 390d) is amended--
(1) in subsection (c), by striking ``subsection (a)'' and 
inserting ``subsections (a) and (e)''; and
(2) by adding at the end the following:

``(e) Mandatory Funding.--Subject to subsections (b), (c), and (d), 
of the funds of the Commodity Credit Corporation, the Secretary shall 
make available to carry out the competitive grant program under section 
4 $125,000,000 for fiscal year 2026 and each fiscal year thereafter.''.
SEC. 10605. ENERGY.

Section 9005(g)(1)(F) of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 8105(g)(1)(F)) is amended by striking ``2024'' and 
inserting ``2031''.

[[Page 139 STAT. 110]]

SEC. 10606. HORTICULTURE.

(a) Plant Pest and Disease Management and Disaster Prevention.--
Section 420(f) of the Plant Protection Act (7 U.S.C. 7721(f)) is 
amended--
(1) in paragraph (5), by striking ``and'' at the end;
(2) by redesignating paragraph (6) as paragraph (7);
(3) by inserting after paragraph (5) the following:
``(6) $75,000,000 for each of fiscal years 2018 through 
2025; and''; and
(4) in paragraph (7) (as so redesignated), by striking 
``$75,000,000 for fiscal year 2018'' and inserting ``$90,000,000 
for fiscal year 2026''.

(b) Specialty Crop Block Grants.--Section 101(l)(1) of the Specialty 
Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-
465) is amended--
(1) in subparagraph (D), by striking ``and'' at the end;
(2) by redesignating subparagraph (E) as subparagraph (F);
(3) by inserting after subparagraph (D) the following:
``(E) $85,000,000 for each of fiscal years 2018 
through 2025; and''; and
(4) in subparagraph (F) (as so redesignated), by striking 
``$85,000,000 for fiscal year 2018'' and inserting 
``$100,000,000 for fiscal year 2026''.

(c) Organic Production and Market Data Initiative.--Section 
7407(d)(1) of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 5925c(d)(1)) is amended--
(1) in subparagraph (B), by striking ``and'' at the end;
(2) in subparagraph (C), by striking the period at the end 
and inserting ``; and''; and
(3) by adding at the end the following:
``(D) $10,000,000 for the period of fiscal years 
2026 through 2031.''.

(d) Modernization and Improvement of International Trade Technology 
Systems and Data Collection.--Section 2123(c)(4) of the Organic Foods 
Production Act of 1990 (7 U.S.C. 6522(c)(4)) is amended, in the matter 
preceding subparagraph (A), by striking ``and $1,000,000 for fiscal year 
2024'' and inserting ``, $1,000,000 for fiscal years 2024 and 2025, and 
$5,000,000 for fiscal year 2026''.
(e) National Organic Certification Cost-share Program.--Section 
10606(d)(1)(C) of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 6523(d)(1)(C)) is amended by striking ``2024'' and inserting 
``2031''.
(f) Multiple Crop and Pesticide Use Survey.--Section 10109(c) of the 
Agriculture Improvement Act of 2018 (Public Law 115-334; 132 Stat. 4907) 
is amended by adding at the end the following:
``(3) Further mandatory funding.--Of the funds of the 
Commodity Credit Corporation, the Secretary shall use to carry 
out this section $5,000,000 for fiscal year 2026, to remain 
available until expended.''.
SEC. 10607. MISCELLANEOUS.

(a) Animal Disease Prevention and Management.--Section 10409A(d)(1) 
of the Animal Health Protection Act (7 U.S.C. 8308a(d)(1)) is amended--

[[Page 139 STAT. 111]]

(1) in subparagraph (B)--
(A) in the heading, by striking ``Subsequent fiscal 
years'' and inserting ``Fiscal years 2023 through 
2025''; and
(B) by striking ``fiscal year 2023 and each fiscal 
year thereafter'' and inserting ``each of fiscal years 
2023 through 2025''; and
(2) by adding at the end the following:
``(C) Fiscal years 2026 through 2030.--Of the funds 
of the Commodity Credit Corporation, the Secretary shall 
make available to carry out this section $233,000,000 
for each of fiscal years 2026 through 2030, of which--
``(i) not less than $10,000,000 shall be made 
available for each such fiscal year to carry out 
subsection (a);
``(ii) not less than $70,000,000 shall be made 
available for each such fiscal year to carry out 
subsection (b); and
``(iii) not less than $153,000,000 shall be 
made available for each such fiscal year to carry 
out subsection (c).
``(D) Subsequent fiscal years.--Of the funds of the 
Commodity Credit Corporation, the Secretary shall make 
available to carry out this section $75,000,000 for 
fiscal year 2031 and each fiscal year thereafter, of 
which not less than $45,000,000 shall be made available 
for each of those fiscal years to carry out subsection 
(b).''.

(b) Sheep Production and Marketing Grant Program.--Section 209(c) of 
the Agricultural Marketing Act of 1946 (7 U.S.C. 1627a(c)) is amended--
(1) by striking ``2019, and'' and inserting ``2019,''; and
(2) by inserting ``and $3,000,000 for fiscal year 2026,'' 
after ``fiscal year 2024,''

(c) Pima Agriculture Cotton Trust Fund.--Section 12314 of the 
Agricultural Act of 2014 (7 U.S.C. 2101 note; Public Law 113-79) is 
amended--
(1) in subsection (b), in the matter preceding paragraph 
(1), by striking ``2024'' and inserting ``2031''; and
(2) in subsection (h), by striking ``2024''and inserting 
``2031''.

(d) Agriculture Wool Apparel Manufacturers Trust Fund.--Section 
12315 of the Agricultural Act of 2014 (7 U.S.C. 7101 note; Public Law 
113-79) is amended by striking ``2024'' each place it appears and 
inserting ``2031''.
(e) Wool Research and Promotion.--Section 12316(a) of the 
Agricultural Act of 2014 (7 U.S.C. 7101 note; Public Law 113-79) is 
amended by striking ``2024'' and inserting ``2031''.
(f) Emergency Citrus Disease Research and Development Trust Fund.--
Section 12605(d) of the Agriculture Improvement Act of 2018 (7 U.S.C. 
7632 note; Public Law 115-334) is amended by striking ``2024'' and 
inserting ``2031''.

[[Page 139 STAT. 112]]

TITLE II-- <<NOTE: Appropriations authorizations. Time 
periods. Expiration date.>> COMMITTEE ON ARMED SERVICES
SEC. 20001. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR 
IMPROVING THE QUALITY OF LIFE FOR 
MILITARY PERSONNEL.

(a) Appropriations.--In addition to amounts otherwise available, 
there are appropriated to the Secretary of Defense for fiscal year 2025, 
out of any money in the Treasury not otherwise appropriated, to remain 
available until September 30, 2029--
(1) $230,480,000 for restoration and modernization costs 
under the Marine Corps Barracks 2030 initiative;
(2) $119,000,000 for base operating support costs under the 
Marine Corps;
(3) $1,000,000,000 for Army, Navy, Air Force, and Space 
Force sustainment, restoration, and modernization of military 
unaccompanied housing;
(4) $2,000,000,000 for the Defense Health Program;
(5) $2,900,000,000 to supplement the basic allowance for 
housing payable to members of the Army, Air Force, Navy, Marine 
Corps, and Space Force , notwithstanding section 403 of title 
37, United States Code;
(6) $50,000,000 for bonuses, special pays, and incentive 
pays for members of the Army, Air Force, Navy, Marine Corps, and 
Space Force pursuant to titles 10 and 37, United States Code;
(7) $10,000,000 for the Defense Activity for Non-Traditional 
Education Support's Online Academic Skills Course program for 
members of the Army, Air Force, Navy, Marine Corps, and Space 
Force;
(8) $100,000,000 for tuition assistance for members of the 
Army, Air Force, Navy, Marine Corps, and Space Force pursuant to 
title 10, United States Code;
(9) $100,000,000 for child care fee assistance for members 
of the Army, Air Force, Navy, Marine Corps, and Space Force 
under part II of chapter 88 of title 10, United States Code;
(10) $590,000,000 to increase the Temporary Lodging Expense 
Allowance under chapter 8 of title 37, United States Code, to 21 
days;
(11) $100,000,000 for Department of Defense Impact Aid 
payments to local educational agencies under section 2008 of 
title 10, United States Code;
(12) $10,000,000 for military spouse professional licensure 
under section 1784 of title 10, United States Code;
(13) $6,000,000 for Armed Forces Retirement Home facilities;
(14) $100,000,000 for the Defense Community Infrastructure 
Program;
(15) $100,000,000 for Defense Advanced Research Projects 
Agency (DARPA) casualty care research; and
(16) $62,000,000 for modernization of Department of Defense 
childcare center staffing.

(b) <<NOTE: 10 USC 2875 note.>> Temporary Increase in Percentage of 
Value of Authorized Investment in Certain Privatized Military Housing 
Projects.--

[[Page 139 STAT. 113]]

(1) <<NOTE: Applicability.>> In general.--During the period 
beginning on the date of the enactment of this section and 
ending on September 30, 2029, the Secretary concerned shall 
apply--
(A) paragraph (1) of subsection (c) of section 2875 
of title 10, United States Code, by substituting ``60 
percent'' for ``33 \1/3\ percent''; and
(B) paragraph (2) of such subsection by substituting 
``60 percent'' for ``45 percent''.
(2) Secretary concerned defined.--In this subsection, the 
term ``Secretary concerned'' has the meaning given such term in 
section 101 of title 10, United States Code.

(c) Temporary Authority for Acquisition or Construction of 
Privatized Military Unaccompanied Housing.--Section 2881a of title 
10, <<NOTE: 10 USC prec. 2871.>> United States Code, is amended--
(1) by striking the heading and inserting ``Temporary 
authority for acquisition or construction of privatized military 
unaccompanied housing'';
(2) by striking ``Secretary of the Navy'' each place it 
appears and inserting ``Secretary concerned'';
(3) by striking ``under the pilot projects'' each place it 
appears and inserting ``pursuant to this section'';
(4) in subsection (a)--
(A) by striking the heading and inserting ``In 
General''; and
(B) by striking ``carry out not more than three 
pilot projects under the authority of this section or 
another provision of this subchapter to use the private 
sector'' and inserting ``use the authority under this 
subchapter to enter into contracts with appropriate 
private sector entities'';
(5) in subsection (c), by striking ``privatized housing'' 
and inserting ``privatized housing units'';
(6) by redesignating subsection (f) as subsection (e); and
(7) in subsection (e) (as so redesignated)--
(A) by striking ``under the pilot programs'' and 
inserting ``under this section''; and
(B) by striking ``September 30, 2009'' and inserting 
``September 30, 2029''.
SEC. 20002. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR 
SHIPBUILDING.

In addition to amounts otherwise available, there are appropriated 
to the Secretary of Defense for fiscal year 2025, out of any money in 
the Treasury not otherwise appropriated, to remain available until 
September 30, 2029--
(1) $250,000,000 for the expansion of accelerated Training 
in Defense Manufacturing program;
(2) $250,000,000 for United States production of turbine 
generators for shipbuilding industrial base;
(3) $450,000,000 for United States additive manufacturing 
for wire production and machining capacity for shipbuilding 
industrial base;
(4) $492,000,000 for next-generation shipbuilding 
techniques;
(5) $85,000,000 for United States-made steel plate for 
shipbuilding industrial base;
(6) $50,000,000 for machining capacity for naval propellers 
for shipbuilding industrial base;

[[Page 139 STAT. 114]]

(7) $110,000,000 for rolled steel and fabrication facility 
for shipbuilding industrial base;
(8) $400,000,000 for expansion of collaborative campus for 
naval shipbuilding;
(9) $450,000,000 for application of autonomy and artificial 
intelligence to naval shipbuilding;
(10) $500,000,000 for the adoption of advanced manufacturing 
techniques in the shipbuilding industrial base;
(11) $500,000,000 for additional dry-dock capability;
(12) $50,000,000 for the expansion of cold spray repair 
technologies;
(13) $450,000,000 for additional maritime industrial 
workforce development programs;
(14) $750,000,000 for additional supplier development across 
the naval shipbuilding industrial base;
(15) $250,000,000 for additional advanced manufacturing 
processes across the naval shipbuilding industrial base;
(16) $4,600,000,000 for a second Virginia-class submarine in 
fiscal year 2026;
(17) $5,400,000,000 for two additional Guided Missile 
Destroyer (DDG) ships;
(18) $160,000,000 for advanced procurement for Landing Ship 
Medium;
(19) $1,803,941,000 for procurement of Landing Ship Medium;
(20) $295,000,000 for development of a second Landing Craft 
Utility shipyard and production of additional Landing Craft 
Utility;
(21) $100,000,000 for advanced procurement for light 
replenishment oiler program;
(22) $600,000,000 for the lease or purchase of new ships 
through the National Defense Sealift Fund;
(23) $2,725,000,000 for the procurement of T-AO oilers;
(24) $500,000,000 for cost-to-complete for rescue and 
salvage ships;
(25) $300,000,000 for production of ship-to-shore 
connectors;
(26) $1,470,000,000 for the implementation of a multi-ship 
amphibious warship contract;
(27) $80,000,000 for accelerated development of vertical 
launch system reloading at sea;
(28) $250,000,000 for expansion of Navy corrosion control 
programs;
(29) $159,000,000 for leasing of ships for Marine Corps 
operations;
(30) $1,534,000,000 for expansion of small unmanned surface 
vessel production;
(31) $2,100,000,000 for development, procurement, and 
integration of purpose-built medium unmanned surface vessels;
(32) $1,300,000,000 for expansion of unmanned underwater 
vehicle production;
(33) $188,360,000 for the development and testing of 
maritime robotic autonomous systems and enabling technologies;
(34) $174,000,000 for the development of a Test Resource 
Management Center robotic autonomous systems proving ground;

[[Page 139 STAT. 115]]

(35) $250,000,000 for the development, production, and 
integration of wave-powered unmanned underwater vehicles; and
(36) $150,000,000 for retention of inactive reserve fleet 
ships.
SEC. 20003. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR 
INTEGRATED AIR AND MISSILE DEFENSE.

(a) Next Generation Missile Defense Technologies.--In addition to 
amounts otherwise available, there are appropriated to the Secretary of 
Defense for fiscal year 2025, out of any money in the Treasury not 
otherwise appropriated, to remain available until September 30, 2029--
(1) $250,000,000 for development and testing of directed 
energy capabilities by the Under Secretary for Research and 
Engineering;
(2) $500,000,000 for national security space launch 
infrastructure;
(3) $2,000,000,000 for air moving target indicator military 
satellites;
(4) $400,000,000 for expansion of Multi-Service Advanced 
Capability Hypersonic Test Bed program;
(5) $5,600,000,000 for development of space-based and boost 
phase intercept capabilities;
(6) $7,200,000,000 for the development, procurement, and 
integration of military space-based sensors; and
(7) $2,550,000,000 for the development, procurement, and 
integration of military missile defense capabilities.

(b) Layered Homeland Defense.--In addition to amounts otherwise 
available, there are appropriated to the Secretary of Defense for fiscal 
year 2025, out of any money in the Treasury not otherwise appropriated, 
to remain available until September 30, 2029--
(1) $2,200,000,000 for acceleration of hypersonic defense 
systems;
(2) $800,000,000 for accelerated development and deployment 
of next-generation intercontinental ballistic missile defense 
systems;
(3) $408,000,000 for Army space and strategic missile test 
range infrastructure restoration and modernization in the United 
States Indo-Pacific Command area of operations west of the 
international dateline;
(4) $1,975,000,000 for improved ground-based missile defense 
radars; and
(5) $530,000,000 for the design and construction of Missile 
Defense Agency missile instrumentation range safety ship.
SEC. 20004. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR 
MUNITIONS AND DEFENSE SUPPLY CHAIN 
RESILIENCY.

(a) Appropriations.--In addition to amounts otherwise available, 
there are appropriated to the Secretary of Defense for fiscal year 2025, 
out of any money in the Treasury not otherwise appropriated, to remain 
available until September 30, 2029--
(1) $400,000,000 for the development, production, and 
integration of Navy and Air Force long-range anti-ship missiles;
(2) $380,000,000 for production capacity expansion for Navy 
and Air Force long-range anti-ship missiles;

[[Page 139 STAT. 116]]

(3) $490,000,000 for the development, production, and 
integration of Navy and Air Force long-range air-to-surface 
missiles;
(4) $94,000,000 for the development, production, and 
integration of alternative Navy and Air Force long-range air-to-
surface missiles;
(5) $630,000,000 for the development, production, and 
integration of long-range Navy air defense and anti-ship 
missiles;
(6) $688,000,000 for the development, production, and 
integration of long-range multi-service cruise missiles;
(7) $250,000,000 for production capacity expansion and 
supplier base strengthening of long-range multi-service cruise 
missiles;
(8) $70,000,000 for the development, production, and 
integration of short-range Navy and Marine Corps anti-ship 
missiles;
(9) $100,000,000 for the development of an anti-ship seeker 
for short-range Army ballistic missiles;
(10) $175,000,000 for production capacity expansion for 
next-generation Army medium-range ballistic missiles;
(11) $50,000,000 for the mitigation of diminishing 
manufacturing sources for medium-range air-to-air missiles;
(12) $250,000,000 for the procurement of medium-range air-
to-air missiles;
(13) $225,000,000 for the expansion of production capacity 
for medium-range air-to-air missiles;
(14) $50,000,000 for the development of second sources for 
components of short-range air-to-air missiles;
(15) $325,000,000 for production capacity improvements for 
air-launched anti-radiation missiles;
(16) $50,000,000 for the accelerated development of Army 
next-generation medium-range anti-ship ballistic missiles;
(17) $114,000,000 for the production of Army next-generation 
medium-range ballistic missiles;
(18) $300,000,000 for the production of Army medium-range 
ballistic missiles;
(19) $85,000,000 for the accelerated development of Army 
long-range ballistic missiles;
(20) $400,000,000 for the production of heavyweight 
torpedoes;
(21) $200,000,000 for the development, procurement, and 
integration of mass-producible autonomous underwater munitions;
(22) $70,000,000 for the improvement of heavyweight torpedo 
maintenance activities;
(23) $200,000,000 for the production of lightweight 
torpedoes;
(24) $500,000,000 for the development, procurement, and 
integration of maritime mines;
(25) $50,000,000 for the development, procurement, and 
integration of new underwater explosives;
(26) $55,000,000 for the development, procurement, and 
integration of lightweight multi-mission torpedoes;
(27) $80,000,000 for the production of sonobuoys;
(28) $150,000,000 for the development, procurement, and 
integration of air-delivered long-range maritime mines;

[[Page 139 STAT. 117]]

(29) $61,000,000 for the acceleration of Navy expeditionary 
loitering munitions deployment;
(30) $50,000,000 for the acceleration of one-way attack 
unmanned aerial systems with advanced autonomy;
(31) $1,000,000,000 for the expansion of the one-way attack 
unmanned aerial systems industrial base;
(32) $200,000,000 for investments in solid rocket motor 
industrial base through the Industrial Base Fund established 
under section 4817 of title 10, United States Code;
(33) $400,000,000 for investments in the emerging solid 
rocket motor industrial base through the Industrial Base Fund 
established under section 4817 of title 10, United States Code;
(34) $42,000,000 for investments in second sources for 
large-diameter solid rocket motors for hypersonic missiles;
(35) $1,000,000,000 for the creation of next-generation 
automated munitions production factories;
(36) $170,000,000 for the development of advanced radar 
depot for repair, testing, and production of radar and 
electronic warfare systems;
(37) $25,000,000 for the expansion of the Department of 
Defense industrial base policy analysis workforce;
(38) $30,300,000 for the repair of Army missiles;
(39) $100,000,000 for the production of small and medium 
ammunition;
(40) $2,000,000,000 for additional activities to improve the 
United States stockpile of critical minerals through the 
National Defense Stockpile Transaction Fund, authorized by 
subchapter III of chapter 5 of title 50, United States Code;
(41) $10,000,000 for the expansion of the Department of 
Defense armaments cooperation workforce;
(42) $500,000,000 for the expansion of the Defense 
Exportability Features program;
(43) $350,000,000 for production of Navy long-range air and 
missile defense interceptors;
(44) $93,000,000 for replacement of Navy long-range air and 
missile defense interceptors;
(45) $100,000,000 for development of a second solid rocket 
motor source for Navy air defense and anti ship missiles;
(46) $65,000,000 for expansion of production capacity of 
Missile Defense Agency long-range anti-ballistic missiles;
(47) $225,000,000 for expansion of production capacity for 
Navy air defense and anti-ship missiles;
(48) $103,300,000 for expansion of depot level maintenance 
facility for Navy long-range air and missile defense 
interceptors;
(49) $18,000,000 for creation of domestic source for 
guidance section of Navy short-range air defense missiles;
(50) $65,000,000 for integration of Army medium-range air 
and missile defense interceptor with Navy ships;
(51) $176,100,000 for production of Army long-range movable 
missile defense radar;
(52) $167,000,000 for accelerated fielding of Army short-
range gun-based air and missile defense system;
(53) $40,000,000 for development of low-cost alternatives to 
air and missile defense interceptors;
(54) $50,000,000 for acceleration of Army next-generation 
shoulder-fired air defense system;

[[Page 139 STAT. 118]]

(55) $91,000,000 for production of Army next-generation 
shoulder-fired air defense system;
(56) $500,000,000 for development, production, and 
integration of counter-unmanned aerial systems programs;
(57) $350,000,000 for development, production, and 
integration of non-kinetic counter-unmanned aerial systems 
programs;
(58) $250,000,000 for development, production, and 
integration of land-based counter-unmanned aerial systems 
programs;
(59) $200,000,000 for development, production, and 
integration of ship-based counter-unmanned aerial systems 
programs;
(60) $400,000,000 for acceleration of hypersonic strike 
programs;
(61) $167,000,000 for procurement of additional launchers 
for Army medium-range air and missile defense interceptors;
(62) $500,000,000 for expansion of defense advanced 
manufacturing techniques;
(63) $1,000,000 for establishment of the Joint Energetics 
Transition Office;
(64) $200,000,000 for acceleration of Army medium-range air 
and missile defense interceptors;
(65) $150,000,000 for additive manufacturing for propellant;
(66) $250,000,000 for expansion and acceleration of 
penetrating munitions production; and
(67) $50,000,000 for development, procurement, and 
integration of precision extended-range artillery.

(b) Appropriation.--In addition to amounts otherwise available, 
there is appropriated to the Secretary of Defense for fiscal year 2025, 
out of any money in the Treasury not otherwise appropriated, to remain 
available until September 30, 2029, $3,300,000,000 for grants and 
purchase commitments made pursuant to the Industrial Base Fund 
established under section 4817 of title 10, United States Code.
(c) Appropriation.--In addition to amounts otherwise available, 
there is appropriated to the Secretary of Defense for fiscal year 2025, 
out of any money in the Treasury not otherwise appropriated, to remain 
available until September 30, 2029, $5,000,000,000 for investments in 
critical minerals supply chains made pursuant to the Industrial Base 
Fund established under section 4817 of title 10, United States Code.
(d) Appropriations.--In addition to amounts otherwise available, 
there is appropriated to the Secretary of Defense, out of any money in 
the Treasury not otherwise appropriated, to remain available until 
September 30, 2029, $500,000,000 to the ``Department of Defense Credit 
Program Account'' to carry out the capital assistance program, including 
loans, loan guarantees, and technical assistance, established under 
section 149(e) of title 10, United States Code, for critical minerals 
and related industries and projects, including related Covered 
Technology Categories: Provided, That--
(1) such amounts are available to subsidize gross 
obligations for the principal amount of direct loans, and total 
loan principal, any part of which is to be guaranteed, not to 
exceed $100,000,000,000; and
(2) such amounts are available to cover all costs and 
expenditures as provided under section 149(e)(5)(B) of title 10, 
United States Code.

[[Page 139 STAT. 119]]

SEC. 20005. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR 
SCALING LOW-COST WEAPONS INTO 
PRODUCTION.

(a) Appropriations.--In addition to amounts otherwise available, 
there are appropriated to the Secretary of Defense for fiscal year 2025, 
out of any money in the Treasury not otherwise appropriated, to remain 
available until September 30, 2029--
(1) $25,000,000 for the Office of Strategic Capital Global 
Technology Scout program;
(2) $1,400,000,000 for the expansion of the small unmanned 
aerial system industrial base;
(3) $400,000,000 for the development and deployment of the 
Joint Fires Network and associated joint battle management 
capabilities;
(4) $400,000,000 for the expansion of advanced command-and-
control tools to combatant commands and military departments;
(5) $100,000,000 for the development of shared secure 
facilities for the defense industrial base;
(6) $50,000,000 for the creation of additional Defense 
Innovation Unit OnRamp Hubs;
(7) $600,000,000 for the acceleration of Strategic 
Capabilities Office programs;
(8) $650,000,000 for the expansion of Mission Capabilities 
office joint prototyping and experimentation activities for 
military innovation;
(9) $500,000,000 for the accelerated development and 
integration of advanced 5G/6G technologies for military use;
(10) $25,000,000 for testing of simultaneous transmit and 
receive technology for military spectrum agility;
(11) $50,000,000 for the development, procurement, and 
integration of high-altitude stratospheric balloons for military 
use;
(12) $120,000,000 for the development, procurement, and 
integration of long-endurance unmanned aerial systems for 
surveillance;
(13) $40,000,000 for the development, procurement, and 
integration of alternative positioning and navigation technology 
to enable military operations in contested electromagnetic 
environments;
(14) $750,000,000 for the acceleration of innovative 
military logistics and energy capability development and 
deployment;
(15) $125,000,000 for the acceleration of development of 
small, portable modular nuclear reactors for military use;
(16) $1,000,000,000 for the expansion of programs to 
accelerate the procurement and fielding of innovative 
technologies;
(17) $90,000,000 for the development of reusable hypersonic 
technology for military strikes;
(18) $2,000,000,000 for the expansion of Defense Innovation 
Unit scaling of commercial technology for military use;
(19) $500,000,000 to prevent delays in delivery of 
attritable autonomous military capabilities;
(20) $1,500,000,000 for the development, procurement, and 
integration of low-cost cruise missiles;
(21) $124,000,000 for improvements to Test Resource 
Management Center artificial intelligence capabilities;

[[Page 139 STAT. 120]]

(22) $145,000,000 for the development of artificial 
intelligence to enable one-way attack unmanned aerial systems 
and naval systems;
(23) $250,000,000 for the development of the Test Resource 
Management Center digital test environment;
(24) $250,000,000 for the advancement of the artificial 
intelligence ecosystem;
(25) $250,000,000 for the expansion of Cyber Command 
artificial intelligence lines of effort;
(26) $250,000,000 for the acceleration of the Quantum 
Benchmarking Initiative;
(27) $1,000,000,000 for the expansion and acceleration of 
qualification activities and technical data management to 
enhance competition in defense industrial base;
(28) $400,000,000 for the expansion of the defense 
manufacturing technology program;
(29) $1,685,000,000 for military cryptographic modernization 
activities;
(30) $90,000,000 for APEX Accelerators, the Mentor-Protege 
Program, and cybersecurity support to small non-traditional 
contractors;
(31) $250,000,000 for the development, procurement, and 
integration of Air Force low-cost counter-air capabilities;
(32) $10,000,000 for additional Air Force wargaming 
activities; and
(33) $20,000,000 for the Office of Strategic Capital 
workforce.

(b) Appropriations.--In addition to amounts otherwise available, 
there are appropriated to the Secretary of Defense, out of any money in 
the Treasury not otherwise appropriated, to remain available until 
September 30, 2029, $1,000,000,000 to the ``Department of Defense Credit 
Program Account'' to carry out the capital assistance program, including 
loans, loan guarantees, and technical assistance, established under 
section 149(e) of title 10, United States Code: Provided, That--
(1) such amounts are available to subsidize gross 
obligations for the principal amount of direct loans, and total 
loan principal, any part of which is to be guaranteed, not to 
exceed $100,000,000,000; and
(2) such amounts are available to cover all costs and 
expenditures as provided under section 149(e)(5)(B) of title 10, 
United States Code.
SEC. 20006. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR 
IMPROVING THE EFFICIENCY AND 
CYBERSECURITY OF THE DEPARTMENT OF 
DEFENSE.

In addition to amounts otherwise available, there are appropriated 
to the Secretary of Defense for fiscal year 2025, out of any money in 
the Treasury not otherwise appropriated, to remain available until 
September 30, 2029--
(1) $150,000,000 for business systems replacement to 
accelerate the audits of the financial statements of the 
Department of Defense pursuant to chapter 9A and section 2222 of 
title 10, United States Code;
(2) $200,000,000 for the deployment of automation and 
artificial intelligence to accelerate the audits of the 
financial

[[Page 139 STAT. 121]]

statements of the Department of Defense pursuant to chapter 9A 
and section 2222 of title 10, United States Code;
(3) $10,000,000 for the improvement of the budgetary and 
programmatic infrastructure of the Office of the Secretary of 
Defense; and
(4) $20,000,000 for defense cybersecurity programs of the 
Defense Advanced Research Projects Agency.
SEC. 20007. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR AIR 
SUPERIORITY.

In addition to amounts otherwise available, there are appropriated 
to the Secretary of Defense for fiscal year 2025, out of any money in 
the Treasury not otherwise appropriated, to remain available until 
September 30, 2029--
(1) $3,150,000,000 to increase F-15EX aircraft production;
(2) $361,220,000 to prevent the retirement of F-22 aircraft;
(3) $127,460,000 to prevent the retirement of F-15E 
aircraft;
(4) $187,000,000 to accelerate installation of F-16 
electronic warfare capability;
(5) $116,000,000 for C-17A Mobility Aircraft Connectivity;
(6) $84,000,000 for KC-135 Mobility Aircraft Connectivity;
(7) $440,000,000 to increase C-130J production;
(8) $474,000,000 to increase EA-37B production;
(9) $678,000,000 to accelerate the Collaborative Combat 
Aircraft program;
(10) $400,000,000 to accelerate production of the F-47 
aircraft;
(11) $750,000,000 accelerate the FA/XX aircraft;
(12) $100,000,000 for production of Advanced Aerial Sensors;
(13) $160,000,000 to accelerate V-22 nacelle and reliability 
and safety improvements;
(14) $100,000,000 to accelerate production of MQ-25 
aircraft;
(15) $270,000,000 for development, procurement, and 
integration of Marine Corps unmanned combat aircraft;
(16) $96,000,000 for the procurement and integration of 
infrared search and track pods;
(17) $50,000,000 for the procurement and integration of 
additional F-15EX conformal fuel tanks;
(18) $600,000,000 for the development, procurement, and 
integration of Air Force long-range strike aircraft; and
(19) $500,000,000 for the development, procurement, and 
integration of Navy long-range strike aircraft.
SEC. 20008. ENHANCEMENT OF RESOURCES FOR NUCLEAR FORCES.

(a) DOD Appropriations.--In addition to amounts otherwise available, 
there are appropriated to the Secretary of Defense for fiscal year 2025, 
out of any money in the Treasury not otherwise appropriated, to remain 
available until September 30, 2029--
(1) $2,500,000,000 for risk reduction activities for the 
Sentinel intercontinental ballistic missile program;
(2) $4,500,000,000 only for expansion of production capacity 
of B-21 long-range bomber aircraft and the purchase of aircraft 
only available through the expansion of production capacity;
(3) $500,000,000 for improvements to the Minuteman III 
intercontinental ballistic missile system;

[[Page 139 STAT. 122]]

(4) $100,000,000 for capability enhancements to 
intercontinental ballistic missile reentry vehicles;
(5) $148,000,000 for the expansion of D5 missile motor 
production;
(6) $400,000,000 to accelerate the development of Trident 
D5LE2 submarine-launched ballistic missiles;
(7) $2,000,000,000 to accelerate the development, 
procurement, and integration of the nuclear-armed sea-launched 
cruise missile;
(8) $62,000,000 to convert Ohio-class submarine tubes to 
accept additional missiles, not to be obligated before March 1, 
2026;
(9) $168,000,000 to accelerate the production of the 
Survivable Airborne Operations Center program;
(10) $65,000,000 to accelerate the modernization of nuclear 
command, control, and communications;
(11) $210,300,000 for the increased production of MH-139 
helicopters; and
(12) $150,000,000 to accelerate the development, 
procurement, and integration of military nuclear weapons 
delivery programs.

(b) NNSA Appropriations.--In addition to amounts otherwise 
available, there are appropriated to the Administrator of the National 
Nuclear Security Administration for fiscal year 2025, out of any money 
in the Treasury not otherwise appropriated, to remain available until 
September 30, 2029--
(1) $200,000,000 to perform National Nuclear Security 
Administration Phase 1 studies pursuant to section 3211 of the 
National Nuclear Security Administration Act (50 U.S.C. 2401);
(2) $540,000,000 to address deferred maintenance and repair 
needs of the National Nuclear Security Administration pursuant 
to section 3211 of the National Nuclear Security Administration 
Act (50 U.S.C. 2401);
(3) $1,000,000,000 to accelerate the construction of 
National Nuclear Security Administration facilities pursuant to 
section 3211 of the National Nuclear Security Administration Act 
(50 U.S.C. 2401);
(4) $400,000,000 to accelerate the development, procurement, 
and integration of the warhead for the nuclear-armed sea-
launched cruise missile pursuant to section 3211 of the National 
Nuclear Security Administration Act (50 U.S.C. 2401);
(5) $750,000,000 to accelerate primary capability 
modernization pursuant to section 3211 of the National Nuclear 
Security Administration Act (50 U.S.C. 2401);
(6) $750,000,000 to accelerate secondary capability 
modernization pursuant to section 3211 of the National Nuclear 
Security Administration Act (50 U.S.C. 2401);
(7) $120,000,000 to accelerate domestic uranium enrichment 
centrifuge deployment for defense purposes pursuant to section 
3211 of the National Nuclear Security Administration Act (50 
U.S.C. 2401);
(8) $10,000,000 for National Nuclear Security Administration 
evaluation of spent fuel reprocessing technology; and
(9) $115,000,000 for accelerating nuclear national security 
missions through artificial intelligence.

[[Page 139 STAT. 123]]

SEC. 20009. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES TO 
IMPROVE CAPABILITIES OF UNITED STATES 
INDO-PACIFIC COMMAND.

In addition to amounts otherwise available, there are appropriated 
to the Secretary of Defense for fiscal year 2025, out of any money in 
the Treasury not otherwise appropriated, to remain available until 
September 30, 2029--
(1) $365,000,000 for Army exercises and operations in the 
Western Pacific area of operations;
(2) $53,000,000 for Special Operations Command exercises and 
operations in the Western Pacific area of operations;
(3) $47,000,000 for Marine Corps exercises and operations in 
Western Pacific area of operations;
(4) $90,000,000 for Air Force exercises and operations in 
Western Pacific area of operations;
(5) $532,600,000 for the Pacific Air Force biennial large-
scale exercise;
(6) $19,000,000 for the development of naval small craft 
capabilities;
(7) $35,000,000 for military additive manufacturing 
capabilities in the United States Indo-Pacific Command area of 
operations west of the international dateline;
(8) $450,000,000 for the development of airfields within the 
area of operations of United States Indo-Pacific Command;
(9) $1,100,000,000 for development of infrastructure within 
the area of operations of United States Indo-Pacific Command;
(10) $124,000,000 for mission networks for United States 
Indo-Pacific Command;
(11) $100,000,000 for Air Force regionally based cluster 
pre-position base kits;
(12) $115,000,000 for exploration and development of 
existing Arctic infrastructure;
(13) $90,000,000 for the accelerated development of non-
kinetic capabilities;
(14) $20,000,000 for United States Indo-Pacific Command 
military exercises;
(15) $143,000,000 for anti-submarine sonar arrays;
(16) $30,000,000 for surveillance and reconnaissance 
capabilities for United States Africa Command;
(17) $30,000,000 for surveillance and reconnaissance 
capabilities for United States Indo-Pacific Command;
(18) $500,000,000 for the development, coordination, and 
deployment of economic competition effects within the Department 
of Defense;
(19) $10,000,000 for the expansion of Department of Defense 
workforce for economic competition;
(20) $1,000,000,000 for offensive cyber operations;
(21) $500,000,000 for personnel and operations costs 
associated with forces assigned to United States Indo-Pacific 
Command;
(22) $300,000,000 for the procurement of mesh network 
communications capabilities for Special Operations Command 
Pacific;
(23) $850,000,000 for the replenishment of military 
articles;
(24) $200,000,000 for acceleration of Guam Defense System 
program;
(25) $68,000,000 for Space Force facilities improvements;

[[Page 139 STAT. 124]]

(26) $150,000,000 for ground moving target indicator 
military satellites;
(27) $528,000,000 for DARC and SILENTBARKER military space 
situational awareness programs;
(28) $80,000,000 for Navy Operational Support Division;
(29) $1,000,000,000 for the X-37B military spacecraft 
program;
(30) $3,650,000,000 for the development, procurement, and 
integration of United States military satellites and the 
protection of United States military satellites.
(31) $125,000,000 for the development, procurement, and 
integration of military space communications.
(32) $350,000,000 for the development, procurement, and 
integration of military space command and control systems.
SEC. 20010. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR 
IMPROVING THE READINESS OF THE 
DEPARTMENT OF DEFENSE.

In addition to amounts otherwise available, there are appropriated 
to the Secretary of Defense for fiscal year 2025, out of any money in 
the Treasury not otherwise appropriated, to remain available until 
September 30, 2029--
(1) $1,400,000,000 for a pilot program on OPN-8 maritime 
spares and repair rotable pool;
(2) $700,000,000 for a pilot program on OPN-8 maritime 
spares and repair rotable pool for amphibious ships;
(3) $2,118,000,000 for spares and repairs to keep Air Force 
aircraft mission capable;
(4) $1,500,000,000 for Army depot modernization and capacity 
enhancement;
(5) $2,000,000,000 for Navy depot and shipyard modernization 
and capacity enhancement;
(6) $250,000,000 for Air Force depot modernization and 
capacity enhancement;
(7) $1,640,000,000 for Special Operations Command equipment, 
readiness, and operations;
(8) $500,000,000 for National Guard unit readiness;
(9) $400,000,000 for Marine Corps readiness and 
capabilities;
(10) $20,000,000 for upgrades to Marine Corps utility 
helicopters;
(11) $310,000,000 for next-generation vertical lift, 
assault, and intra-theater aeromedical evacuation aircraft;
(12) $75,000,000 for the procurement of anti-lock braking 
systems for Army wheeled transport vehicles;
(13) $230,000,000 for the procurement of Army wheeled combat 
vehicles;
(14) $63,000,000 for the development of advanced rotary-wing 
engines;
(15) $241,000,000 for the development, procurement, and 
integration of Marine Corps amphibious vehicles;
(16) $250,000,000 for the procurement of Army tracked combat 
transport vehicles;
(17) $98,000,000 for additional Army light rotary-wing 
capabilities;
(18) $1,500,000,000 for increased depot maintenance and 
shipyard maintenance activities;

[[Page 139 STAT. 125]]

(19) $2,500,000,000 for Air Force facilities sustainment, 
restoration, and modernization;
(20) $92,500,000 for the completion of Robotic Combat 
Vehicle prototyping;
(21) $125,000,000 for Army operations;
(22) $10,000,000 for the Air Force Concepts, Development, 
and Management Office; and
(23) $320,000,000 for Joint Special Operations Command.
SEC. 20011. IMPROVING DEPARTMENT OF DEFENSE BORDER SUPPORT AND 
COUNTER-DRUG MISSIONS.

In addition to amounts otherwise available, there are appropriated 
to the Secretary of Defense for fiscal year 2025, out of any money in 
the Treasury not otherwise appropriated, to remain available until 
September 30, 2029, $1,000,000,000 for the deployment of military 
personnel in support of border operations, operations and maintenance 
activities in support of border operations, counter-narcotics and 
counter-transnational criminal organization mission support, the 
operation of national defense areas and construction in national defense 
areas, and the temporary detention of migrants on Department of Defense 
installations, in accordance with chapter 15 of title 10, United States 
Code.
SEC. 20012. DEPARTMENT OF DEFENSE OVERSIGHT.

In addition to amounts otherwise available, there is appropriated to 
the Inspector General of the Department of Defense for fiscal year 2025, 
out of any money in the Treasury not otherwise appropriated, 
$10,000,000, to remain available through September 30, 2029, to monitor 
Department of Defense activities for which funding is appropriated in 
this title, including--
(1) programs with mutual technological dependencies;
(2) programs with related data management and data ownership 
considerations; and
(3) programs particularly vulnerable to supply chain 
disruptions and long lead time components.
SEC. 20013. MILITARY CONSTRUCTION PROJECTS AUTHORIZED.

(a) Authorization of Appropriations.--Funds are hereby authorized to 
be appropriated for military construction, land acquisition, and 
military family housing functions of each military department (as 
defined in section 101(a) of title 10, United States Code) as specified 
in this title.
(b) <<NOTE: Deadline.>> Spending Plan.--Not later than 30 days after 
the date of the enactment of this title, the Secretary of each military 
department shall submit to the Committees on Armed Services of the 
Senate and House of Representatives a detailed spending plan by project 
for all funds made available by this title to be expended on military 
construction projects.

[[Page 139 STAT. 126]]

TITLE III-- <<NOTE: Time periods.>> COMMITTEE ON BANKING, HOUSING, AND 
URBAN AFFAIRS
SEC. 30001. FUNDING CAP FOR THE BUREAU OF CONSUMER FINANCIAL 
PROTECTION.

Section 1017(a)(2)(A)(iii) of the Consumer Financial Protection Act 
of 2010 (12 U.S.C. 5497(a)(2)(A)(iii)) is amended by striking ``12'' and 
inserting ``6.5''.
SEC. 30002. RESCISSION OF FUNDS FOR GREEN AND RESILIENT RETROFIT 
PROGRAM FOR MULTIFAMILY HOUSING.

The unobligated balances of amounts made available under section 
30002(a) of the Act entitled ``An Act to provide for reconciliation 
pursuant to title II of S. Con. Res. 14'', approved August 16, 2022 
(Public Law 117-169; 136 Stat. 2027) are rescinded.
SEC. 30003. SECURITIES AND EXCHANGE COMMISSION RESERVE FUND.

(a) In General.--Section 4 of the Securities Exchange Act of 1934 
(15 U.S.C. 78d) is amended--
(1) by striking subsection (i); and
(2) by redesignating subsections (j) and (k) as subsections 
(i) and (j), respectively.

(b) Technical and Conforming Amendment.--Section 21F(g)(2) of the 
Securities Exchange Act of 1934 (15 U.S.C. 78u-6(g)(2)) is amended to 
read as follows:
``(a) Use of Fund.--The Fund shall be available to the Commission, 
without further appropriation or fiscal year limitation, for paying 
awards to whistleblowers as provided in subsection (b).''.
(c) <<NOTE: Effective date. 15 USC 78d note.>> Transition 
Provision.--During the period beginning on the date of enactment of this 
Act and ending on October 1, 2025, the Securities and Exchange 
Commission may expend amounts in the Securities and Exchange Commission 
Reserve Fund that were obligated before the date of enactment of this 
Act for any program, project, or activity that is ongoing (as of the day 
before the date of enactment of this Act) in accordance with subsection 
(i) of section 4 of the Securities Exchange Act of 1934 (15 U.S.C. 78d), 
as in effect on the day before the date of enactment of this Act.

(d) <<NOTE: Effective date.>> Transfer of Remaining Amounts.--
Effective on October 1, 2025, the obligated and unobligated balances of 
amounts in the Securities and Exchange Commission Reserve Fund shall be 
transferred to the general fund of the Treasury.

(e) Closing of Account.--For the purposes of section 1555 of title 
31, United States Code, the Securities and Exchange Commission Reserve 
Fund shall be considered closed, and thereafter shall not be available 
for obligation or expenditure for any purpose, upon execution of the 
transfer required under subsection (d).
SEC. 30004. <<NOTE: Expiration date.>> APPROPRIATIONS FOR DEFENSE 
PRODUCTION ACT.

In addition to amounts otherwise available, there is appropriated 
for fiscal year 2025, out of amounts not otherwise appropriated, 
$1,000,000,000, to remain available until September 30, 2027, to carry 
out the Defense Production Act (50 U.S.C. 4501 et seq.).

[[Page 139 STAT. 127]]

TITLE IV--COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

SEC. 40001. COAST GUARD MISSION READINESS.

(a) In General.--Chapter 11 of title 14, <<NOTE: 14 USC prec. 
1181.>> United States Code, is amended by adding at the end the 
following:

``Subchapter V--Coast Guard Mission Readiness

``Sec. 1181. <<NOTE: 14 USC 1181.>> Special appropriations

``In <<NOTE: Time period. Expiration date.>> addition to amounts 
otherwise available, there is appropriated to the Coast Guard for fiscal 
year 2025, out of any money in the Treasury not otherwise appropriated, 
$24,593,500,000, to remain available until September 30, 2029, 
notwithstanding paragraphs (1) and (2) of section 1105(a) and sections 
1131, 1132, 1133, and 1156, to use expedited processes to procure or 
acquire new operational assets and systems, to maintain existing assets 
and systems, to design, construct, plan, engineer, and improve necessary 
shore infrastructure, and to enhance operational resilience for 
monitoring, search and rescue, interdiction, hardening of maritime 
approaches, and navigational safety, of which--
``(1) $1,142,500,000 is provided for procurement and 
acquisition of fixed-wing aircraft, equipment related to such 
aircraft and training simulators and program management for such 
aircraft, to provide for security of the maritime border;
``(2) $2,283,000,000 is provided for procurement and 
acquisition of rotary-wing aircraft, equipment related to such 
aircraft and training simulators and program management for such 
aircraft, to provide for security of the maritime border;
``(3) $266,000,000 is provided for procurement and 
acquisition of long-range unmanned aircraft and base stations, 
equipment related to such aircraft and base stations, and 
program management for such aircraft and base stations, to 
provide for security of the maritime border;
``(4) $4,300,000,000 is provided for procurement of Offshore 
Patrol Cutters, equipment related to such cutters, and program 
management for such cutters, to provide operational presence and 
security of the maritime border and for interdiction of persons 
and controlled substances;
``(5) $1,000,000,000 is provided for procurement of Fast 
Response Cutters, equipment related to such cutters, and program 
management for such cutters, to provide operational presence and 
security of the maritime border and for interdiction of persons 
and controlled substances;
``(6) $4,300,000,000 is provided for procurement of Polar 
Security Cutters, equipment related to such cutters, and program 
management for such cutters, to ensure timely presence of the 
Coast Guard in the Arctic and Antarctic regions;
``(7) $3,500,000,000 is provided for procurement of Arctic 
Security Cutters, equipment related to such cutters, and program 
management for such cutters, to ensure timely presence of the 
Coast Guard in the Arctic and Antarctic regions;
``(8) $816,000,000 is provided for procurement of light and 
medium icebreaking cutters, and equipment relating to such 
cutters, from shipyards that have demonstrated success in the

[[Page 139 STAT. 128]]

cost-effective application of design standards and in 
delivering, on schedule and within budget, vessels of a size and 
tonnage that are not less than the size and tonnage of the 
cutters described in this paragraph, and for program management 
for such cutters, to expand domestic icebreaking capacity;
``(9) $162,000,000 is provided for procurement of Waterways 
Commerce Cutters, equipment related to such cutters, and program 
management for such cutters, to support aids to navigation, 
waterways and coastal security, and search and rescue in inland 
waterways;
``(10) $4,379,000,000 is provided for design, planning, 
engineering, recapitalization, construction, rebuilding, and 
improvement of, and program management for, shore facilities, of 
which--
``(A) $425,000,000 is provided for design, planning, 
engineering, construction of, and program management 
for--
``(i) the enlisted boot camp barracks and 
multi-use training center; and
``(ii) other related facilities at the 
enlisted boot camp;
``(B) $500,000,000 is provided for--
``(i) construction, improvement, and dredging 
at the Coast Guard Yard; and
``(ii) acquisition of a floating drydock for 
the Coast Guard Yard;
``(C) not more than $2,729,500,000 is provided for 
homeports and hangars for cutters and aircraft for which 
funds are appropriated under paragraph (1) through (9); 
and
``(D) $300,000,000 is provided for homeporting of 
the existing polar icebreaker commissioned into service 
in 2025;
``(11) $2,200,000,000 is provided for aviation, cutter, and 
shore facility depot maintenance and maintenance of command, 
control, communication, computer, and cyber assets;
``(12) $170,000,000 is provided for improving maritime 
domain awareness on the maritime border, at United States ports, 
at land-based facilities and in the cyber domain; and
``(13) $75,000,000 is provided to contract the services of, 
acquire, or procure autonomous maritime systems.''.

(b) Technical and Conforming Amendment.--The analysis for chapter 11 
of title 14, United <<NOTE: 14 USC prec. 1101.>> States Code, is amended 
by adding at the end the following:

``subchapter v--coast guard mission readiness

``1181. Special appropriations.''.

SEC. 40002. <<NOTE: Deadlines. 47 USC 309 note.>> SPECTRUM 
AUCTIONS.

(a) Definitions.--In this section:
(1) Assistant secretary.--The term ``Assistant Secretary'' 
means the Assistant Secretary of Commerce for Communications and 
Information.
(2) Commission.--The term ``Commission'' means the Federal 
Communications Commission.
(3) Covered band.--The term ``covered band''--
(A) except as provided in subparagraph (B), means 
the band of frequencies between 1.3 gigahertz and 10.5 
gigahertz; and

[[Page 139 STAT. 129]]

(B) does not include--
(i) the band of frequencies between 3.1 
gigahertz and 3.45 gigahertz for purposes of 
auction, reallocation, modification, or 
withdrawal; or
(ii) the band of frequencies between 7.4 
gigahertz and 8.4 gigahertz for purposes of 
auction, reallocation, modification, or 
withdrawal.
(4) Full-power commercial licensed use cases.--The term 
``full-power commercial licensed use cases'' means flexible use 
wireless broadband services with base station power levels 
sufficient for high-power, high-density, and wide-area 
commercial mobile services, consistent with the service rules 
under part 27 of title 47, Code of Federal Regulations, or any 
successor regulations, for wireless broadband deployments 
throughout the covered band.

(b) General Auction Authority.--
(1) <<NOTE: Expiration date.>> Amendment.--Section 
309(j)(11) of the Communications Act of 1934 (47 U.S.C. 
309(j)(11)) is amended by striking ``grant a license or permit 
under this subsection shall expire March 9, 2023'' and all that 
follows and inserting the following: "complete a system of 
competitive bidding under this subsection shall expire September 
30, 2034, except that, with respect to the electromagnetic 
spectrum-- ``
``(A) between the frequencies of 3.1 gigahertz and 
3.45 gigahertz, such authority shall not apply; and
``(B) between the frequencies of 7.4 gigahertz and 
8.4 gigahertz, such authority shall not apply.''.
(2) Spectrum auctions.--The Commission shall grant licenses 
through systems of competitive bidding, before the expiration of 
the general auction authority of the Commission under section 
309(j)(11) of the Communications Act of 1934 (47 U.S.C. 
309(j)(11)), as amended by paragraph (1) of this subsection, for 
not less than 300 megahertz, including by completing a system of 
competitive bidding not later than 2 years after the date of 
enactment of this Act for not less than 100 megahertz in the 
band between 3.98 gigahertz and 4.2 gigahertz.

(c) Identification for Reallocation.--
(1) In general.--The Assistant Secretary, in consultation 
with the Commission, shall identify 500 megahertz of frequencies 
in the covered band for reallocation to non-Federal use, shared 
Federal and non-Federal use, or a combination thereof, for full-
power commercial licensed use cases, that--
(A) as of the date of enactment of this Act, are 
allocated for Federal use; and
(B) shall be in addition to the 300 megahertz of 
frequencies for which the Commission grants licenses 
under subsection (b)(2).
(2) Schedule.--The Assistant Secretary shall identify the 
frequencies under paragraph (1) according to the following 
schedule:
(A) Not later than 2 years after the date of 
enactment of this Act, the Assistant Secretary shall 
identify not less than 200 megahertz of frequencies 
within the covered band.
(B) Not later than 4 years after the date of 
enactment of this Act, the Assistant Secretary shall 
identify any

[[Page 139 STAT. 130]]

remaining bandwidth required to be identified under 
paragraph (1).
(3) Required analysis.--
(A) <<NOTE: Determination.>> In general.--In 
determining under paragraph (1) which specific 
frequencies within the covered band to reallocate, the 
Assistant Secretary shall determine the feasibility of 
the reallocation of frequencies.
(B) <<NOTE: Assessment.>> Requirements.--In 
conducting the analysis under subparagraph (A), the 
Assistant Secretary shall assess net revenue potential, 
relocation or sharing costs, as applicable, and the 
feasibility of reallocating specific frequencies, with 
the goal of identifying the best approach to maximize 
net proceeds of systems of competitive bidding for the 
Treasury, consistent with section 309(j) of the 
Communications Act of 1934 (47 U.S.C. 309(j)).

(d) <<NOTE: Notifications.>> Auctions.--The Commission shall grant 
licenses for the frequencies identified for reallocation under 
subsection (c) through systems of competitive bidding in accordance with 
the following schedule:
(1) Not later than 4 years after the date of enactment of 
this Act, the Commission shall, after notifying the Assistant 
Secretary, complete 1 or more systems of competitive bidding for 
not less than 200 megahertz of the frequencies.
(2) <<NOTE: Compliance.>> Not later than 8 years after the 
date of enactment of this Act, the Commission shall, after 
notifying the Assistant Secretary, complete 1 or more systems of 
competitive bidding for any frequencies identified under 
subsection (c) that remain to be auctioned after compliance with 
paragraph (1) of this subsection.

(e) <<NOTE: President. Determination.>> Limitation.--The President 
shall modify or withdraw any frequency proposed for reallocation under 
this section not later than 60 days before the commencement of a system 
of competitive bidding scheduled by the Commission with respect to that 
frequency, if the President determines that such modification or 
withdrawal is necessary to protect the national security of the United 
States.

(f) <<NOTE: Time period. Expiration date.>> Appropriation.--In 
addition to amounts otherwise available, there is appropriated to the 
Department of Commerce for fiscal year 2025, out of any money in the 
Treasury not otherwise appropriated, $50,000,000, to remain available 
through September 30, 2034, to provide additional support to the 
Assistant Secretary to--
(1) <<NOTE: Analysis.>> conduct a timely spectrum analysis 
of the bands of frequencies--
(A) between 2.7 gigahertz and 2.9 gigahertz;
(B) between 4.4 gigahertz and 4.9 gigahertz; and
(C) between 7.25 gigahertz and 7.4 gigahertz; and
(2) <<NOTE: Publication. Reports. Assessments.>> publish a 
biennial report, with the last report to be published not later 
than June 30, 2034, on the value of all spectrum used by Federal 
entities (as defined in section 113(l) of the National 
Telecommunications and Information Administration Organization 
Act (47 U.S.C. 923(l))), that assesses the value of bands of 
frequencies in increments of not more than 100 megahertz.

[[Page 139 STAT. 131]]

SEC. 40003. <<NOTE: Time periods.>> AIR TRAFFIC CONTROL 
IMPROVEMENTS.

(a) <<NOTE: Appropriation authorization. Expiration date.>> In 
General.--For the purpose of the acquisition, construction, sustainment, 
and improvement of facilities and equipment necessary to improve or 
maintain aviation safety, in addition to amounts otherwise made 
available, there is appropriated to the Administrator of the Federal 
Aviation Administration for fiscal year 2025, out of any money in the 
Treasury not otherwise appropriated, to remain available until September 
30, 2029--
(1) $4,750,000,000 for telecommunications infrastructure 
modernization and systems upgrades;
(2) $3,000,000,000 for radar systems replacement;
(3) $500,000,000 for runway safety technologies, runway 
lighting systems, airport surface surveillance technologies, and 
to carry out section 347 of the FAA Reauthorization Act of 2024;
(4) $300,000,000 for Enterprise Information Display Systems;
(5) $80,000,000 to acquire and install not less than 50 
Automated Weather Observing Systems, to acquire and install not 
less than 60 Visual Weather Observing Systems, to acquire and 
install not less than 64 weather camera sites, and to acquire 
and install weather stations;
(6) $40,000,000 to carry out section 44745 of title 49, 
United States Code, (except for activities described in 
paragraph (5));
(7) $1,900,000,000 for necessary actions to construct a new 
air route traffic control center (in this subsection referred to 
as ``ARTCC''): Provided, That not more than 2 percent of such 
amount is used for planning or administrative purposes: 
Provided further, That at least 3 existing ARTCCs are divested 
and integrated into the newly constructed ARTCC;
(8) $100,000,000 to conduct an ARTCC Realignment and 
Consolidation Effort under which at least 10 existing ARTCCs are 
closed or consolidated to facilitate recapitalization of ARTCC 
facilities owned and operated by the Federal Aviation 
Administration;
(9) $1,000,000,000 to support recapitalization and 
consolidation of terminal radar approach control facilities (in 
this subsection referred to as ``TRACONs''), the analysis and 
identification of TRACONs for divestment, consolidation, or 
integration, planning, site selection, facility acquisition, and 
transition activities and other appropriate activities for 
carrying out such divestment, consolidation, or integration, and 
the establishment of brand new TRACONs;
(10) $350,000,000 for unstaffed infrastructure sustainment 
and replacement;
(11) $50,000,000 to carry out section 961 of the FAA 
Reauthorization Act of 2024;
(12) $300,000,000 to carry out section 619 of the FAA 
Reauthorization Act of 2024;
(13) $50,000,000 to carry out section 621 of the FAA 
Reauthorization Act of 2024 and to deploy remote tower 
technology at untowered airports; and
(14) $100,000,000 for air traffic controller advanced 
training technologies.

(b) Quarterly Reporting.--Not later than 180 days after the date of 
enactment of this Act, and every 90 days thereafter, the Administrator 
of the Federal Aviation Administration shall submit

[[Page 139 STAT. 132]]

to Congress a report that describes any expenditures under this section.
SEC. 40004. SPACE LAUNCH AND REENTRY LICENSING AND PERMITTING USER 
FEES.

(a) In General.--Chapter 509 of title 51, United States Code, is 
amended by adding at the end the following new section:
``Sec. 50924. Space <<NOTE: 51 USC 50924.>> launch and reentry 
licensing and permitting user fees

``(a) <<NOTE: Time periods.>> Fees.--
``(1) In general.--The Secretary of Transportation shall 
impose a fee, which shall be deposited in the account 
established under subsection (b), on each launch or reentry 
carried out under a license or permit issued under section 50904 
during 2026 or a subsequent year, in an amount equal to the 
lesser of--
``(A) the amount specified in paragraph (2) for the 
year involved per pound of the weight of the payload; or
``(B) the amount specified in paragraph (3) for the 
year involved.
``(2) Paragraph (2) specified amount.--The amount specified 
in this paragraph is--
``(A) for 2026, $0.25;
``(B) for 2027, $0.35;
``(C) for 2028, $0.50;
``(D) for 2029, $0.60;
``(E) for 2030, $0.75;
``(F) for 2031, $1;
``(G) for 2032, $1.25;
``(H) for 2033, $1.50; and
``(I) for 2034 and each subsequent year, the amount 
specified in this paragraph for the previous year 
increased by the percentage increase in the consumer 
price index for all urban consumers (all items; United 
States city average) over the previous year.
``(3) Paragraph (3) specified amount.--The amount specified 
in this paragraph is--
``(A) for 2026, $30,000;
``(B) for 2027, $40,000;
``(C) for 2028, $50,000;
``(D) for 2029, $75,000;
``(E) for 2030, $100,000;
``(F) for 2031, $125,000;
``(G) for 2032, $170,000;
``(H) for 2033, $200,000; and
``(I) for 2034 and each subsequent year, the amount 
specified in this paragraph for the previous year 
increased by the percentage increase in the consumer 
price index for all urban consumers (all items; United 
States city average) over the previous year.

``(b) Office of Commercial Space Transportation Launch and Reentry 
Licensing and Permitting Fund.--There is established in the Treasury of 
the United States a separate account, which shall be known as the 
`Office of Commercial Space Transportation Launch and Reentry Licensing 
and Permitting Fund', for

[[Page 139 STAT. 133]]

the purposes of expenses of the Office of Commercial Space 
Transportation of the Federal Aviation Administration and to carry out 
section 630(b) of the FAA Reauthorization Act of 2024. 70 percent of the 
amounts deposited into the fund shall be available for such purposes and 
shall be available without further appropriation and without fiscal year 
limitation.''.
(b) Clerical Amendment.--The table of sections for chapter 509 of 
title 51, United States Code, <<NOTE: 51 USC prec. 50901.>> is amended 
by inserting after the item relating to section 50923 the following:

``50924. Space launch and reentry licensing and permitting user fees.''.

SEC. 40005. MARS MISSIONS, ARTEMIS MISSIONS, AND MOON TO MARS 
PROGRAM.

(a) In General.--Chapter 203 of title 51, United States Code, is 
amended by adding at the end the following:
``Sec. 20306. <<NOTE: Deadlines. 51 USC 20306.>> Special 
appropriations for Mars missions, Artemis 
missions, and Moon to Mars program

``(a) <<NOTE: Time periods. Expiration date.>> In General.--In 
addition to amounts otherwise available, there is appropriated to the 
Administration for fiscal year 2025, out of any money in the Treasury 
not otherwise appropriated, $9,995,000,000, to remain available until 
September 30, 2032, to use as follows:
``(1) $700,000,000, to be obligated not later than fiscal 
year 2026, for the procurement, using a competitively bid, firm 
fixed-price contract with a United States commercial provider 
(as defined in section 50101(7)), of a high-performance Mars 
telecommunications orbiter--
``(A) that--
``(i) is capable of providing robust, 
continuous communications for--
``(I) a Mars sample return mission, 
as described in section 432(3)(C) of the 
National Aeronautics and Space 
Administration Transition Authorization 
Act of 2017 (51 U.S.C. 20302 note; 
Public Law 115-10); and
``(II) future Mars surface, orbital, 
and human exploration missions;
``(ii) supports autonomous operations, onboard 
processing, and extended mission duration 
capabilities; and
``(iii) is selected from among the commercial 
proposals that--
``(I) received funding from the 
Administration in fiscal year 2024 or 
2025 for commercial design studies for 
Mars Sample Return; and
``(II) proposed a separate, 
independently launched Mars 
telecommunication orbiter supporting an 
end-to-end Mars sample return mission; 
and
``(B) which shall be delivered to the Administration 
not later than December 31, 2028.
``(2) $2,600,000,000 to meet the requirements of section 
20302(a) using the program of record known, as of the date of 
the enactment of this section, as `Gateway', and as described in 
section 10811(b)(2)(B)(iv) of the National Aeronautics and Space 
Administration Authorization Act of 2022 (51 U.S.C.

[[Page 139 STAT. 134]]

20302 note; Public Law 117-167), of which not less than 
$750,000,000 shall be obligated for each of fiscal years 2026, 
2027, and 2028.
``(3) $4,100,000,000 for expenses related to meeting the 
requirements of section 10812 of the National Aeronautics and 
Space Administration Authorization Act of 2022 (51 U.S.C. 20301; 
Public Law 117-167) for the procurement, transportation, 
integration, operation, and other necessary expenses of the 
Space Launch System for Artemis Missions IV and V, of which not 
less than $1,025,000,000 shall be obligated for each of fiscal 
years 2026, 2027, 2028, and 2029.
``(4) $20,000,000 for expenses related to the continued 
procurement of the multi-purpose crew vehicle described in 
section 303 of the National Aeronautics and Space Administration 
Authorization Act of 2010 (42 U.S.C. 18323), known as the 
`Orion', for use with the Space Launch System on the Artemis IV 
Mission and reuse in subsequent Artemis Missions, of which not 
less than $20,000,000 shall be obligated not later than fiscal 
year 2026.
``(5) $1,250,000,000 for expenses related to the operation 
of the International Space Station and for the purpose of 
meeting the requirement under section 503(a) of the National 
Aeronautics and Space Administration Authorization Act of 2010 
(42 U.S.C. 18353(a)), of which not less than $250,000,000 shall 
be obligated for such expenses for each of fiscal years 2025, 
2026, 2027, 2028, and 2029.
``(6) <<NOTE: State listing.>> $1,000,000,000 for 
infrastructure improvements at the manned spaceflight centers of 
the Administration, of which not less than--
``(A) $120,000,000 shall be obligated not later than 
fiscal year 2026 for construction, revitalization, 
recapitalization, or other infrastructure projects and 
improvements at the center described in Executive Order 
12641 (53 Fed. Reg. 18816; relating to designating 
certain facilities of the National Aeronautics and Space 
Administration in the State of Mississippi as the John 
C. Stennis Space Center);
``(B) $250,000,000 shall be obligated not later than 
fiscal year 2026 for construction, revitalization, 
recapitalization, or other infrastructure projects and 
improvements at the center described in Executive Order 
11129 (28 Fed. Reg. 12787; relating to designating 
certain facilities of the National Aeronautics and Space 
Administration and of the Department of Defense, in the 
State of Florida, as the John F. Kennedy Space Center);
``(C) $300,000,000 shall be obligated not later than 
fiscal year 2026 for construction, revitalization, 
recapitalization, or other infrastructure projects and 
improvements at the center described in the Joint 
Resolution entitled `Joint Resolution to designate the 
Manned Spacecraft Center in Houston, Texas, as the 
``Lyndon B. Johnson Space Center'' in honor of the late 
President', approved February 17, 1973 (Public Law 93-8; 
87 Stat. 7);
``(D) $100,000,000 shall be obligated not later than 
fiscal year 2026 for construction, revitalization, 
recapitalization, or other infrastructure projects and 
improvements at the center described in Executive Order 
10870 (25 Fed. Reg. 2197; relating to designating the 
facilities of the

[[Page 139 STAT. 135]]

National Aeronautics and Space Administration at 
Huntsville, Alabama, as the George C. Marshall Space 
Flight Center);
``(E) $30,000,000 shall be obligated not later than 
fiscal year 2026 for construction, revitalization, 
recapitalization, or other infrastructure projects and 
improvements at the Michoud Assembly Facility in New 
Orleans, Louisiana; and
``(F) <<NOTE: Transfer.>> $85,000,000 shall be 
obligated to carry out subsection (b), of which not less 
than $5,000,000 shall be obligated for the 
transportation of the space vehicle described in that 
subsection, with the remainder transferred not later 
than the date that is 18 months after the date of the 
enactment of this section to the entity designated under 
that subsection, for the purpose of construction of a 
facility to house the space vehicle referred to in that 
subsection.
``(7) $325,000,000 to fulfill contract number 80JSC024CA002 
issued by the National Aeronautics and Space Administration on 
June 26, 2024.

``(b) Space Vehicle Transfer.--
``(1) In general.--Not later than 30 days after the date of 
the enactment of this section, the Administrator shall identify 
a space vehicle described in paragraph (2) to be--
``(A) transferred to a field center of the 
Administration that is involved in the administration of 
the Commercial Crew Program (as described in section 302 
of the National Aeronautics and Space Administration 
Transition Authorization Act of 2017 (51 U.S.C. 50111 
note; Public Law 115-10)); and
``(B) placed on public exhibition at an entity 
within the Metropolitan Statistical Area where such 
center is located.
``(2) Space vehicle described.--A space vehicle described in 
this paragraph is a vessel that--
``(A) has flown into space;
``(B) has carried astronauts; and
``(C) is selected with the concurrence of an entity 
designated by the Administrator.
``(3) Transfer.--Not later than 18 months after the date of 
the enactment of this section, the space vehicle identified 
under paragraph (1) shall be transferred to an entity designated 
by the Administrator.

``(c) Obligation of Funds.--Funds appropriated under subsection (a) 
shall be obligated as follows:
``(1) Not less than 50 percent of the total funds in 
subsection (a) shall be obligated not later than September 30, 
2028.
``(2) 100 percent of funds shall be obligated not later than 
September 30, 2029.
``(3) All associated outlays shall occur not later than 
September 30, 2034.''.

[[Page 139 STAT. 136]]

(b) Clerical Amendment.--The table of sections for chapter 203 of 
title 51, United States Code, <<NOTE: 51 USC prec. 20301.>> is amended 
by adding at the end the following:

``20306. Special appropriations for Mars missions, Artemis missions, and 
Moon to Mars program.''.

SEC. 40006. CORPORATE AVERAGE FUEL ECONOMY CIVIL PENALTIES.

(a) In General.--Section 32912 of title 49, United States Code, is 
amended--
(1) in subsection (b), in the matter preceding paragraph 
(1), by striking ``$5'' and inserting ``$0.00''; and
(2) in subsection (c)(1)(B), by striking ``$10'' and 
inserting ``$0.00''.

(b) <<NOTE: 49 USC 32912 note.>> Effect; Applicability.--The 
amendments made by subsection (a) shall--
(1) take effect on the date of enactment of this section; 
and
(2) apply to all model years of a manufacturer for which the 
Secretary of Transportation has not provided a notification 
pursuant to section 32903(b)(2)(B) of title 49, United States 
Code, specifying the penalty due for the average fuel economy of 
that manufacturer being less than the applicable standard 
prescribed under section 32902 of that title.
SEC. 40007. PAYMENTS FOR LEASE OF METROPOLITAN WASHINGTON 
AIRPORTS.

Section 49104(b) of title 49, United States Code, is amended to read 
as follows:
``(b) <<NOTE: Time periods.>> Payments.--
``(1) In general.--Subject to paragraph (2), under the 
lease, the Airports Authority must pay to the general fund of 
the Treasury annually an amount, computed using the GNP Price 
Deflator--
``(A) during the period from 1987 to 2026, equal to 
$3,000,000 in 1987 dollars; and
``(B) for 2027 and subsequent years, equal to 
$15,000,000 in 2027 dollars.
``(2) Renegotiation.--The Secretary and the Airports 
Authority shall renegotiate the level of lease payments at least 
once every 10 years to ensure that in no year the amount 
specified in paragraph (1)(B) is less than $15,000,000 in 2027 
dollars.''.
SEC. 40008. RESCISSION OF CERTAIN AMOUNTS FOR THE NATIONAL OCEANIC 
AND ATMOSPHERIC ADMINISTRATION.

Any unobligated balances of amounts appropriated or otherwise made 
available by sections 40001, 40002, 40003, and 40004 of Public Law 117-
169 (136 Stat. 2028) are hereby rescinded.
SEC. 40009. REDUCTION IN ANNUAL TRANSFERS TO TRAVEL PROMOTION 
FUND.

Subsection (d)(2)(B) of the Travel Promotion Act of 2009 (22 U.S.C. 
2131(d)(2)(B)) is amended by striking ``$100,000,000'' and inserting 
``$20,000,000''.

[[Page 139 STAT. 137]]

SEC. 40010. <<NOTE: Rescission.>> TREATMENT OF UNOBLIGATED FUNDS 
FOR ALTERNATIVE FUEL AND LOW-EMISSION 
AVIATION TECHNOLOGY.

Out of the amounts made available by section 40007(a) of title IV of 
Public Law 117-169 (49 U.S.C. 44504 note), any unobligated balances of 
such amounts are hereby rescinded.
SEC. 40011. RESCISSION OF AMOUNTS APPROPRIATED TO PUBLIC WIRELESS 
SUPPLY CHAIN INNOVATION FUND.

Of the unobligated balances of amounts made available under section 
106(a) of the CHIPS Act of 2022 (Public Law 117-167; 136 Stat. 1392), 
$850,000,000 are permanently rescinded.

TITLE V--COMMITTEE ON ENERGY AND NATURAL RESOURCES

Subtitle A--Oil and Gas Leasing

SEC. 50101. ONSHORE OIL AND GAS LEASING.

(a) <<NOTE: 30 USC 188 and note.>> Repeal of Inflation Reduction Act 
Provisions.--
(1) Onshore oil and gas royalty rates.--Subsection (a) of 
section 50262 of Public Law 117-169 <<NOTE: 30 USC 226.>> (136 
Stat. 2056) is repealed, and any provision of law amended or 
repealed by that subsection is restored or revived as if that 
subsection had not been enacted into law.
(2) Noncompetitive leasing.--Subsection (e) of section 50262 
of Public Law 117-169 <<NOTE: 30 USC 226.>> (136 Stat. 2057) is 
repealed, and any provision of law amended or repealed by that 
subsection is restored or revived as if that subsection had not 
been enacted into law.

(b) <<NOTE: Compliance.>> Requirement to Immediately Resume Onshore 
Oil and Gas Lease Sales.--
(1) <<NOTE: Time period. 30 USC 226 note.>> In general.--The 
Secretary of the Interior shall immediately resume quarterly 
onshore oil and gas lease sales in compliance with the Mineral 
Leasing Act (30 U.S.C. 181 et seq.).
(2) Requirement.--The Secretary of the Interior shall 
ensure--
(A) that any oil and gas lease sale required under 
paragraph (1) is conducted immediately on completion of 
all applicable scoping, public comment, and 
environmental analysis requirements under the Mineral 
Leasing Act (30 U.S.C. 181 et seq.) and the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.); and
(B) that the processes described in subparagraph (A) 
are conducted in a timely manner to ensure compliance 
with subsection (b)(1).
(3) <<NOTE: Definition.>> Lease of oil and gas lands.--
Section 17(b)(1)(A) of the Mineral Leasing Act (30 U.S.C. 
226(b)(1)(A)), as amended by subsection (a), is amended by 
inserting ``For purposes of the previous sentence, the term 
`eligible lands' means all lands that are subject to leasing 
under this Act and are not excluded from leasing by a statutory 
prohibition, and the term `available', with respect to eligible 
lands, means those lands that have been designated as open for 
leasing under a land use plan developed under section 202 of the 
Federal Land Policy and

[[Page 139 STAT. 138]]

Management Act of 1976 (43 U.S.C. 1712) and that have been 
nominated for leasing through the submission of an expression of 
interest, are subject to drainage in the absence of leasing, or 
are otherwise designated as available pursuant to regulations 
adopted by the Secretary.'' after ``sales are necessary.''.

(c) <<NOTE: 30 USC 226 note.>> Quarterly Lease Sales.--
(1) <<NOTE: State listing.>> In general.--In accordance with 
the Mineral Leasing Act (30 U.S.C. 181 et seq.), each fiscal 
year, the Secretary of the Interior shall conduct a minimum of 4 
oil and gas lease sales of available land in each of the 
following States:
(A) Wyoming.
(B) New Mexico.
(C) Colorado.
(D) Utah.
(E) Montana.
(F) North Dakota.
(G) Oklahoma.
(H) Nevada.
(I) Alaska.
(2) Requirement.--In conducting a lease sale under paragraph 
(1) in a State described in that paragraph, the Secretary of the 
Interior--
(A) shall offer not less than 50 percent of 
available parcels nominated for oil and gas development 
under the applicable resource management plan in effect 
for relevant Bureau of Land Management resource 
management areas within the applicable State; and
(B) shall not restrict the parcels offered to 1 
Bureau of Land Management field office within the 
applicable State unless all nominated parcels are 
located within the same Bureau of Land Management field 
office.
(3) Replacement sales.--The Secretary of the Interior shall 
conduct a replacement sale during the same fiscal year if--
(A) a lease sale under paragraph (1) is canceled, 
delayed, or deferred, including for a lack of eligible 
parcels; or
(B) during a lease sale under paragraph (1) the 
percentage of acreage that does not receive a bid is 
equal to or greater than 25 percent of the acreage 
offered.

(d) Mineral Leasing Act Reforms.--Section 17 of the Mineral Leasing 
Act (30 U.S.C. 226), as amended by subsection (a), is amended--
(1) by striking the section designation and all that follows 
through the end of subsection (a) and inserting the following:
``SEC. 17. LEASING OF OIL AND GAS PARCELS.

``(a) Leasing Authorized.--
``(1) <<NOTE: Deadline. Determination.>> In general.--Any 
parcel of land subject to disposition under this Act that is 
known or believed to contain oil or gas deposits shall be made 
available for leasing, subject to paragraph (2), by the 
Secretary of the Interior, not later than 18 months after the 
date of receipt by the Secretary of an expression of interest in 
leasing the applicable parcel of land available for disposition 
under this section, if the Secretary determines that the parcel 
of land is open to oil or gas leasing under the approved 
resource management plan applicable to

[[Page 139 STAT. 139]]

the planning area in which the parcel of land is located that is 
in effect on the date on which the expression of interest was 
submitted to the Secretary (referred to in this subsection as 
the `approved resource management plan').
``(2) Resource management plans.--
``(A) Lease terms and conditions.--A lease issued by 
the Secretary under this section with respect to an 
applicable parcel of land made available for leasing 
under paragraph (1)--
``(i) shall be subject to the terms and 
conditions of the approved resource management 
plan; and
``(ii) may not require any stipulations or 
mitigation requirements not included in the 
approved resource management plan.
``(B) Effect of amendment.--The initiation of an 
amendment to an approved resource management plan shall 
not prevent or delay the Secretary from making the 
applicable parcel of land available for leasing in 
accordance with that approved resource management plan 
if the other requirements of this section have been met, 
as determined by the Secretary.'';
(2) in subsection (p), by adding at the end the following:
``(4) <<NOTE: Effective date.>> Term.--A permit to drill 
approved under this subsection shall be valid for a single, non-
renewable 4-year period beginning on the date that the permit to 
drill is approved.''; and
(3) by striking subsection (q) and inserting the following:

``(q) <<NOTE: Approval.>> Commingling of Production.--The Secretary 
of the Interior shall approve applications allowing for the commingling 
of production from 2 or more sources (including the area of an oil and 
gas lease, the area included in a drilling spacing unit, a unit 
participating area, a communitized area, or non-Federal property) before 
production reaches the point of royalty measurement regardless of 
ownership, the royalty rates, and the number or percentage of acres for 
each source if the applicant agrees to install measurement devices for 
each source, utilize an allocation method that achieves volume 
measurement uncertainty levels within plus or minus 2 percent during the 
production phase reported on a monthly basis, or utilize an approved 
periodic well testing methodology. Production from multiple oil and gas 
leases, drilling spacing units, communitized areas, or participating 
areas from a single wellbore shall be considered a single source. 
Nothing in this subsection shall prevent the Secretary of the Interior 
from continuing the current practice of exercising discretion to 
authorize higher percentage volume measurement uncertainty levels if 
appropriate technical and economic justifications have been provided.''.
SEC. 50102. OFFSHORE OIL AND GAS LEASING.

(a) <<NOTE: 43 USC 1331 note.>> Lease Sales.--
(1) Gulf of america region.--
(A) In general.--Notwithstanding the 2024-2029 
National Outer Continental Shelf Oil and Gas Leasing 
Program (and any successor leasing program that does not 
satisfy the requirements of this section), in addition 
to lease sales which may be held under that program, and 
except within areas subject to existing oil and gas

[[Page 139 STAT. 140]]

leasing moratoria, the Secretary of the Interior shall 
conduct a minimum of 30 region-wide oil and gas lease 
sales, in a manner consistent with the schedule 
described in subparagraph (B), in the region identified 
in the map depicting lease terms and economic conditions 
accompanying the final notice of sale of the Bureau of 
Ocean Energy Management entitled ``Gulf of Mexico Outer 
Continental Shelf Region-Wide Oil and Gas Lease Sale 
254'' (85 Fed. Reg. 8010 (February 12, 2020)).
(B) <<NOTE: Deadlines. Time periods.>> Timing 
requirement.--Of the not fewer than 30 region-wide lease 
sales required under this paragraph, the Secretary of 
the Interior shall--
(i) hold not fewer than 1 lease sale in the 
region described in subparagraph (A) by December 
15, 2025;
(ii) hold not fewer than 2 lease sales in that 
region in each of calendar years 2026 through 
2039, 1 of which shall be held by March 15 of the 
applicable calendar year and 1 of which shall be 
held after March 15 but not later than August 15 
of the applicable calendar year; and
(iii) hold not fewer than 1 lease sale in that 
region in calendar year 2040, which shall be held 
by March 15, 2040.
(2) Alaska region.--
(A) In general.--The Secretary of the Interior shall 
conduct a minimum of 6 offshore lease sales, in a manner 
consistent with the schedule described in subparagraph 
(B), in the Cook Inlet Planning Area as identified in 
the 2017-2022 Outer Continental Shelf Oil and Gas 
Leasing Proposed Final Program published on November 18, 
2016, by the Bureau of Ocean Energy Management (as 
announced in the notice of availability of the Bureau of 
Ocean Energy Management entitled ``Notice of 
Availability of the 2017-2022 Outer Continental Shelf 
Oil and Gas Leasing Proposed Final Program'' (81 Fed. 
Reg. 84612 (November 23, 2016))).
(B) <<NOTE: Deadlines.>> Timing requirement.--Of the 
not fewer than 6 lease sales required under this 
paragraph, the Secretary of the Interior shall hold not 
fewer than 1 lease sale in the area described in 
subparagraph (A) in each of calendar years 2026 through 
2028, and in each of calendar years 2030 through 2032, 
by March 15 of the applicable calendar year.

(b) Requirements.--
(1) Terms and stipulations for gulf of america sales.--In 
conducting lease sales under subsection (a)(1), the Secretary of 
the Interior--
(A) shall, subject to subparagraph (C), offer the 
same lease form, lease terms, economic conditions, and 
lease stipulations 4 through 9 as contained in the final 
notice of sale of the Bureau of Ocean Energy Management 
entitled ``Gulf of Mexico Outer Continental Shelf 
Region-Wide Oil and Gas Lease Sale 254'' (85 Fed. Reg. 
8010 (February 12, 2020));
(B) <<NOTE: Update.>> may update lease stipulations 
1 through 3 and 10 described in that final notice of 
sale to reflect current conditions for lease sales 
conducted under subsection (a)(1);

[[Page 139 STAT. 141]]

(C) shall set the royalty rate at not less than 
12\1/2\ percent but not greater than 16\2/3\ percent; 
and
(D) shall, for a lease in water depths of 800 meters 
or deeper issued as a result of a sale, set the primary 
term for 10 years.
(2) Terms and stipulations for alaska region sales.--
(A) In general.--In conducting lease sales under 
subsection (a)(2), the Secretary of the Interior shall 
offer the same lease form, lease terms, economic 
conditions, and stipulations as contained in the final 
notice of sale of the Bureau of Ocean Energy Management 
entitled ``Cook Inlet Planning Area Outer Continental 
Shelf Oil and Gas Lease Sale 244'' (82 Fed. Reg. 23291 
(May 22, 2017)).
(B) <<NOTE: Effective date.>> Revenue sharing.--
Notwithstanding section 8(g) and section 9 of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1337(g), 1338), 
and beginning in fiscal year 2034, of the bonuses, 
rents, royalties, and other revenues derived from lease 
sales conducted under subsection (a)(2)--
(i) 70 percent shall be paid to the State of 
Alaska; and
(ii) 30 percent shall be deposited in the 
Treasury and credited to miscellaneous receipts.
(3) Area offered for lease.--
(A) Gulf of america region.--For each offshore lease 
sale conducted under subsection (a)(1), the Secretary of 
the Interior shall--
(i) offer not fewer than 80,000,000 acres; or
(ii) if there are fewer than 80,000,000 acres 
that are unleased and available, offer all 
unleased and available acres.
(B) Alaska region.--For each offshore lease sale 
conducted under subsection (a)(2), the Secretary of the 
Interior shall--
(i) offer not fewer than 1,000,000 acres; or
(ii) if there are fewer than 1,000,000 acres 
that are unleased and available, offer all 
unleased and available acres.

(c) <<NOTE: Approval. Determination.>> Offshore Commingling.--The 
Secretary of the Interior shall approve a request of an operator to 
commingle oil or gas production from multiple reservoirs within a single 
wellbore completed on the outer Continental Shelf in the Gulf of America 
Region unless the Secretary of the Interior determines that conclusive 
evidence establishes that the commingling--
(1) could not be conducted by the operator in a safe manner; 
or
(2) would result in an ultimate recovery from the applicable 
reservoirs to be reduced in comparison to the expected recovery 
of those reservoirs if they had not been commingled.

(d) Offshore Oil and Gas Royalty Rate.--
(1) <<NOTE: 43 USC 1337 and note.>> Repeal.--Section 50261 
of Public Law 117-169 (136 Stat. 2056) is repealed, and any 
provision of law amended or repealed by that section is restored 
or revived as if that section had not been enacted into law.
(2) Royalty rate.--Section 8(a)(1) of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1337(a)(1)) (as amended by paragraph 
(1)) is amended--

[[Page 139 STAT. 142]]

(A) in subparagraph (A), by striking ``not less than 
12\1/2\ per centum'' and inserting ``not less than 12\1/
2\ percent, but not more than 16\2/3\ percent,'';
(B) in subparagraph (C), by striking ``not less than 
12\1/2\ per centum'' and inserting ``not less than 12\1/
2\ percent, but not more than 16\2/3\ percent,'';
(C) in subparagraph (F), by striking ``no less than 
12\1/2\ per centum'' and inserting ``not less than 12\1/
2\ percent, but not more than 16\2/3\ percent,''; and
(D) in subparagraph (H), by striking ``no less than 
12 and \1/2\ per centum'' and inserting ``not less than 
12\1/2\ percent, but not more than 16\2/3\ percent,''.

(e) Limitations on Amount of Distributed Qualified Outer Continental 
Shelf Revenues.--Section 105(f)(1) of the Gulf of Mexico Energy Security 
Act of 2006 (43 U.S.C. 1331 note; Public Law 109-432) is amended--
(1) in subparagraph (B), by striking ``and'' at the end;
(2) in subparagraph (C), by striking ``2055.'' and inserting 
``2024;''; and
(3) by adding at the end the following:
``(D) $650,000,000 for each of fiscal years 2025 
through 2034; and
``(E) $500,000,000 for each of fiscal years 2035 
through 2055.''.
SEC. 50103. <<NOTE: Repeal.>> ROYALTIES ON EXTRACTED METHANE.

Section 50263 of Public Law 117-169 (30 U.S.C. 1727) is repealed.
SEC. 50104. <<NOTE: 16 USC 3143 note.>> ALASKA OIL AND GAS 
LEASING.

(a) Definitions.--In this section:
(1) Coastal plain.--The term ``Coastal Plain'' has the 
meaning given the term in section 20001(a) of Public Law 115-97 
(16 U.S.C. 3143 note).
(2) Oil and gas program.--The term ``oil and gas program'' 
means the oil and gas program established under section 
20001(b)(2) of Public Law 115-97 (16 U.S.C. 3143 note).
(3) Secretary.--The term ``Secretary'' means the Secretary 
of the Interior, acting through the Bureau of Land Management.

(b) Lease Sales Required.--
(1) <<NOTE: Deadline.>> In general.--Subject to paragraph 
(3), in addition to the lease sales required under section 
20001(c)(1)(A) of Public Law 115-97 (16 U.S.C. 3143 note), the 
Secretary shall conduct not fewer than 4 lease sales area-wide 
under the oil and gas program by not later than 10 years after 
the date of enactment of this Act.
(2) Terms and conditions.--In conducting lease sales under 
paragraph (1), the Secretary shall offer the same terms and 
conditions as contained in the record of decision described in 
the notice of availability of the Bureau of Land Management 
entitled ``Notice of Availability of the Record of Decision for 
the Final Environmental Impact Statement for the Coastal Plain 
Oil and Gas Leasing Program, Alaska'' (85 Fed. Reg. 51754 
(August 21, 2020)).
(3) Sale acreages; schedule.--
(A) Acreages.--In conducting the lease sales 
required under paragraph (1), the Secretary shall offer 
for lease under the oil and gas program--

[[Page 139 STAT. 143]]

(i) not fewer than 400,000 acres area-wide in 
each lease sale; and
(ii) those areas that have the highest 
potential for the discovery of hydrocarbons.
(B) <<NOTE: Deadlines.>> Schedule.--The Secretary 
shall offer--
(i) the initial lease sale under paragraph (1) 
not later than 1 year after the date of enactment 
of this Act;
(ii) a second lease sale under paragraph (1) 
not later than 3 years after the date of enactment 
of this Act;
(iii) a third lease sale under paragraph (1) 
not later than 5 years after the date of enactment 
of this Act; and
(iv) a fourth lease sale under paragraph (1) 
not later than 7 years after the date of enactment 
of this Act.
(4) <<NOTE: Applicability.>> Rights-of-way.--Section 
20001(c)(2) of Public Law 115-97 (16 U.S.C. 3143 note) shall 
apply to leases awarded under this subsection.
(5) <<NOTE: Applicability.>> Surface development.--Section 
20001(c)(3) of Public Law 115-97 (16 U.S.C. 3143 note) shall 
apply to leases awarded under this subsection.

(c) <<NOTE: Time periods.>> Receipts.--Notwithstanding section 35 of 
the Mineral Leasing Act (30 U.S.C. 191) and section 20001(b)(5) of 
Public Law 115-97 (16 U.S.C. 3143 note), of the amount of adjusted 
bonus, rental, and royalty receipts derived from the oil and gas program 
and operations on the Coastal Plain pursuant to this section--
(1)(A) for each of fiscal years 2025 through 2033, 50 
percent shall be paid to the State of Alaska; and
(B) for fiscal year 2034 and each fiscal year thereafter, 70 
percent shall be paid to the State of Alaska; and
(2) the balance shall be deposited into the Treasury as 
miscellaneous receipts.
SEC. 50105. NATIONAL PETROLEUM RESERVE-ALASKA.

(a) <<NOTE: 42 USC 6506a note.>> Definitions.--In this section:
(1) NPR-A final environmental impact statement.--The term 
``NPR-A final environmental impact statement'' means the final 
environmental impact statement published by the Bureau of Land 
Management entitled ``National Petroleum Reserve in Alaska 
Integrated Activity Plan Final Environmental Impact Statement'' 
and dated June 2020, including the errata sheet dated October 6, 
2020, and excluding the errata sheet dated September 20, 2022.
(2) NPR-A record of decision.--The term ``NPR-A record of 
decision'' means the record of decision published by the Bureau 
of Land Management entitled ``National Petroleum Reserve in 
Alaska Integrated Activity Plan Record of Decision'' and dated 
December 2020.
(3) Program.--The term ``Program'' means the competitive oil 
and gas leasing, exploration, development, and production 
program established under section 107 of the Naval Petroleum 
Reserves Production Act of 1976 (42 U.S.C. 6506a).
(4) Secretary.--The term ``Secretary'' means the Secretary 
of the Interior.

[[Page 139 STAT. 144]]

(b) Restoration of NPR-A Oil and Gas Leasing Program.--Effective 
beginning <<NOTE: Effective date.>> on the date of enactment of this 
Act, the Secretary shall expeditiously restore and resume oil and gas 
lease sales under the Program for domestic energy production and Federal 
revenue in the areas designated for oil and gas leasing as described in 
the NPR-A final environmental impact statement and the NPR-A record of 
decision.

(c) <<NOTE: Deadlines.>> Resumption of NPR-A Lease Sales.--
(1) In general.--Subject to paragraph (2), the Secretary 
shall conduct not fewer than 5 lease sales under the Program by 
not later than 10 years after the date of enactment of this Act.
(2) Sales acreages; schedule.--
(A) Acreages.--In conducting the lease sales 
required under paragraph (1), the Secretary shall offer 
not fewer than 4,000,000 acres in each lease sale.
(B) Schedule.--The Secretary shall offer--
(i) an initial lease sale under paragraph (1) 
not later than 1 year after the date of enactment 
of this Act; and
(ii) an additional lease sale under paragraph 
(1) not later than every 2 years after the date of 
enactment of this Act.

(d) Terms and Stipulations for NPR-A Lease Sales.--In conducting 
lease sales under subsection (c), the Secretary shall offer the same 
lease form, lease terms, economic conditions, and stipulations as 
described in the NPR-A final environmental impact statement and the NPR-
A record of decision.
(e) Receipts.--Section 107(l) of the Naval Petroleum Reserves 
Production Act of 1976 (42 U.S.C. 6506a(l)) is amended--
(1) by striking ``All receipts from'' and inserting the 
following:
``(1) In general.--Except as provided in paragraph (2), all 
receipts from''; and
(2) by adding at the end the following:
``(2) Percent share for fiscal year 2034 and thereafter.--
Beginning <<NOTE: Effective date.>> in fiscal year 2034, of the 
receipts from sales, rentals, bonuses, and royalties on leases 
issued pursuant to this section after the date of enactment of 
the Act entitled `An Act to provide for reconciliation pursuant 
to title II of H. Con. Res. 14' (119th Congress)--
``(A) 70 percent shall be paid to the State of 
Alaska; and
``(B) 30 percent shall be paid into the Treasury of 
the United States.''.

Subtitle B--Mining

SEC. 50201. COAL LEASING.

(a) Definitions.--In this section:
(1) Coal lease.--The term ``coal lease'' means a lease 
entered into by the United States as lessor, through the Bureau 
of Land Management, and an applicant on Bureau of Land 
Management Form 3400-012 (or a successor form that contains the 
terms of a coal lease).

[[Page 139 STAT. 145]]

(2) Qualified application.--The term ``qualified 
application'' means an application for a coal lease pending as 
of the date of enactment of this Act or submitted within 90 days 
thereafter under the lease by application program administered 
by the Bureau of Land Management pursuant to the Mineral Leasing 
Act (30 U.S.C. 181 et seq.) for which any required environmental 
review has commenced or the Director of the Bureau of Land 
Management determines can commence within 90 days after 
receiving the application.

(b) <<NOTE: Deadline.>> Coal Leasing Activities.--Not later than 90 
days after the date of enactment of this Act, the Secretary of the 
Interior--
(1) shall--
(A) with respect to each qualified application--
(i) <<NOTE: Publication.>> if not previously 
published for public comment, publish any required 
environmental review;
(ii) establish the fair market value of the 
applicable coal tract;
(iii) hold a lease sale with respect to the 
applicable coal tract; and
(iv) identify the highest bidder at or above 
the fair market value and take all other 
intermediate actions necessary to identify the 
winning bidder and grant the qualified 
application; and
(2) may--
(A) with respect to a previously issued coal lease, 
grant any additional approvals of the Department of the 
Interior required for mining activities to commence; and
(B) after completing the actions required by clauses 
(i) through (iv) of paragraph (1)(A), grant the 
qualified application and issue the applicable lease to 
the person that submitted the qualified application if 
that person submitted the winning bid in the lease sale 
held under clause (iii) of paragraph (1)(A).
SEC. 50202. COAL ROYALTY.

(a) Rate.-- <<NOTE: Time period.>> Section 7(a) of the Mineral 
Leasing Act (30 U.S.C. 207(a)) is amended, in the fourth sentence, by 
striking ``12\1/2\ per centum'' and inserting ``12\1/2\ percent, except 
such amount shall be not more than 7 percent during the period that 
begins on the date of enactment of the Act entitled `An Act to provide 
for reconciliation pursuant to title II of H. Con. Res. 14' (119th 
Congress) and ends September 30, 2034,''.

(b) <<NOTE: 30 USC 207 note.>> Applicability to Existing Leases.--
The amendment made by subsection (a) shall apply to a coal lease--
(1) issued under section 2 of the Mineral Leasing Act (30 
U.S.C. 201) before, on, or after the date of the enactment of 
this Act; and
(2) that has not been terminated.

(c) <<NOTE: 30 USC 207 note.>> Advance Royalties.--With respect to a 
lease issued under section 2 of the Mineral Leasing Act (30 U.S.C. 201) 
for which the lessee has paid advance royalties under section 7(b) of 
that Act (30 U.S.C. 207(b)), the Secretary of the Interior shall provide 
to the lessee a credit for the difference between the amount paid by the 
lessee in advance royalties for the lease before the date of the 
enactment of this Act and the amount the lessee would have been required 
to pay if the amendment made by subsection

[[Page 139 STAT. 146]]

(a) had been made before the lessee paid advance royalties for the 
lease.
SEC. 50203. <<NOTE: 30 USC 201 note.>> LEASES FOR KNOWN 
RECOVERABLE COAL RESOURCES.

Notwithstanding <<NOTE: Deadline.>> section 2(a)(3)(A) of the 
Mineral Leasing Act (30 U.S.C. 201(a)(3)(A)) and section 202(a) of the 
Federal Land Policy and Management Act of 1976 (43 U.S.C. 1712(a)), not 
later than 90 days after the date of enactment of this Act, the 
Secretary of the Interior shall make available for lease known 
recoverable coal resources of not less than 4,000,000 additional acres 
on Federal land located in the 48 contiguous States and Alaska subject 
to the jurisdiction of the Secretary, but which shall not include any 
Federal land within--
(1) a National Monument;
(2) a National Recreation Area;
(3) a component of the National Wilderness Preservation 
System;
(4) a component of the National Wild and Scenic Rivers 
System;
(5) a component of the National Trails System;
(6) a National Conservation Area;
(7) a unit of the National Wildlife Refuge System;
(8) a unit of the National Fish Hatchery System; or
(9) a unit of the National Park System.
SEC. 50204. <<NOTE: 30 USC 201 note.>> AUTHORIZATION TO MINE 
FEDERAL COAL.

(a) Authorization.--In order to provide access to coal reserves in 
adjacent State or private land that without an authorization could not 
be mined economically, Federal coal reserves located in Federal land 
subject to a mining plan previously approved by the Secretary of the 
Interior as of the date of enactment of this Act and adjacent to coal 
reserves in adjacent State or private land are authorized to be mined.
(b) <<NOTE: Deadline.>> Requirement.--Not later than 90 days after 
the date of enactment of this Act, the Secretary of the Interior shall, 
without substantial modification, take such steps as are necessary to 
authorize the mining of Federal land described in subsection (a).

(c) NEPA.--Nothing in this section shall prevent a review under the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

Subtitle C--Lands

SEC. 50301. <<NOTE: Time periods.>> TIMBER SALES AND LONG-TERM 
CONTRACTING FOR THE FOREST SERVICE AND 
THE BUREAU OF LAND MANAGEMENT.

(a) <<NOTE: 16 USC 472a note.>> Forest Service.--
(1) Definitions.--In this subsection:
(A) Forest plan.--The term ``forest plan'' means a 
land and resource management plan prepared by the 
Secretary for a unit of the National Forest System 
pursuant to section 6 of the Forest and Rangeland 
Renewable Resources Planning Act of 1974 (16 U.S.C. 
1604).
(B) National forest system.--
(i) In general.--The term ``National Forest 
System'' means land of the National Forest System 
(as defined in section 11(a) of the Forest and 
Rangeland

[[Page 139 STAT. 147]]

Renewable Resources Planning Act of 1974 (16 
U.S.C. 1609(a))) administered by the Secretary.
(ii) Exclusions.--The term ``National Forest 
System'' does not include any forest reserve not 
created from the public domain.
(C) Secretary.--The term ``Secretary'' means the 
Secretary of Agriculture, acting through the Chief of 
the Forest Service.
(2) Timber sales on public domain forest reserves.--
(A) In general.--For each of fiscal years 2026 
through 2034, the Secretary shall sell timber annually 
on National Forest System land in a total quantity that 
is not less than 250,000,000 board-feet greater than the 
quantity of board-feet sold in the previous fiscal year.
(B) Limitation.--The timber sales under subparagraph 
(A) shall be subject to the maximum allowable sale 
quantity of timber or the projected timber sale quantity 
under the applicable forest plan in effect on the date 
of enactment of this Act.
(3) Long-term contracting for the forest service.--
(A) Long-term contracting.--For the period of fiscal 
years 2025 through 2034, the Secretary shall enter into 
not fewer than 40 long-term timber sale contracts with 
private persons or other public or private entities 
under subsection (a) of section 14 of the National 
Forest Management Act of 1976 (16 U.S.C. 472a) for the 
sale of national forest materials (as defined in 
subsection (e)(1) of that section) in the National 
Forest System.
(B) Contract length.--The period of a timber sale 
contract entered into to meet the requirement under 
subparagraph (A) shall be not less than 20 years, with 
options for extensions or renewals, as determined by the 
Secretary.
(C) Receipts.--Any monies derived from a timber sale 
contract entered into to meet the requirements under 
subparagraphs (A) and (B) shall be deposited in the 
general fund of the Treasury.

(b) <<NOTE: 43 USC 1701 note.>> Bureau of Land Management.--
(1) Definitions.--In this subsection:
(A) Public lands.--The term ``public lands'' has the 
meaning given the term in section 103 of the Federal 
Land Policy and Management Act of 1976 (43 U.S.C. 1702).
(B) Resource management plan.--The term ``resource 
management plan'' means a land use plan prepared for 
public lands under section 202 of the Federal Land 
Policy and Management Act of 1976 (43 U.S.C. 1712).
(C) Secretary.--The term ``Secretary'' means the 
Secretary of the Interior, acting through the Director 
of the Bureau of Land Management.
(2) Timber sales on public lands.--
(A) In general.--For each of fiscal years 2026 
through 2034, the Secretary shall sell timber annually 
on public lands in a total quantity that is not less 
than 20,000,000 board-feet greater than the quantity of 
board-feet sold in the previous fiscal year.

[[Page 139 STAT. 148]]

(B) Limitation.--The timber sales under subparagraph 
(A) shall be subject to the applicable resource 
management plan in effect on the date of enactment of 
this Act.
(3) Long-term contracting for the bureau of land 
management.--
(A) Long-term contracting.--For the period of fiscal 
years 2025 through 2034, the Secretary shall enter into 
not fewer than 5 long-term contracts with private 
persons or other public or private entities under 
section 1 of the Act of July 31, 1947 (commonly known as 
the ``Materials Act of 1947'') (61 Stat. 681, chapter 
406; 30 U.S.C. 601), for the disposal of vegetative 
materials described in that section on public lands.
(B) Contract length.--The period of a contract 
entered into to meet the requirement under subparagraph 
(A) shall be not less than 20 years, with options for 
extensions or renewals, as determined by the Secretary.
(C) Receipts.--Any monies derived from a contract 
entered into to meet the requirements under 
subparagraphs (A) and (B) shall be deposited in the 
general fund of the Treasury.
SEC. 50302. <<NOTE: 43 USC 3007.>> RENEWABLE ENERGY FEES ON 
FEDERAL LAND.

(a) Definitions.--In this section:
(1) Annual adjustment factor.--The term ``Annual Adjustment 
Factor'' means 3 percent.
(2) Encumbrance factor.--The term ``Encumbrance Factor'' 
means--
(A) 100 percent for a solar energy generation 
facility; and
(B) an amount determined by the Secretary, but not 
less than 10 percent for a wind energy generation 
facility.
(3) National forest system.--
(A) In general.--The term ``National Forest System'' 
means land of the National Forest System (as defined in 
section 11(a) of the Forest and Rangeland Renewable 
Resources Planning Act of 1974 (16 U.S.C. 1609(a))) 
administered by the Secretary of Agriculture.
(B) Exclusion.--The term ``National Forest System'' 
does not include any forest reserve not created from the 
public domain.
(4) Per-acre rate.--The term ``Per-Acre Rate'', with respect 
to a right-of-way, means the average of the per-acre pastureland 
rental rates published in the Cash Rents Survey by the National 
Agricultural Statistics Service for the State in which the 
right-of-way is located over the 5 calendar-year period 
preceding the issuance or renewal of the right-of-way.
(5) Project.--The term ``project'' means a system described 
in section 2801.9(a)(4) of title 43, Code of Federal Regulations 
(as in effect on the date of enactment of this Act).
(6) Public land.--The term ``public land'' means--
(A) public lands (as defined in section 103 of the 
Federal Land Policy and Management Act of 1976 (43 
U.S.C. 1702)); and
(B) National Forest System land.

[[Page 139 STAT. 149]]

(7) Renewable energy project.--The term ``renewable energy 
project'' means a project located on public land that uses wind 
or solar energy to generate energy.
(8) Right-of-way.--The term ``right-of-way'' has the meaning 
given the term in section 103 of the Federal Land Policy and 
Management Act of 1976 (43 U.S.C. 1702).
(9) Secretary.--The term ``Secretary'' means--
(A) the Secretary of the Interior, with respect to 
land controlled or administered by the Secretary of the 
Interior; and
(B) the Secretary of Agriculture, with respect to 
National Forest System land.

(b) Acreage Rent for Wind and Solar Rights-of-way.--
(1) <<NOTE: Deadlines.>> In general.--Pursuant to section 
504(g) of the Federal Land Policy and Management Act of 1976 (43 
U.S.C. 1764(g)), the Secretary shall, subject to paragraph (3) 
and not later than January 1 of each calendar year, collect from 
the holder of a right-of-way for a renewable energy project an 
acreage rent in an amount determined by the equation described 
in paragraph (2).
(2) Calculation of acreage rent rate.--
(A) Equation.--The amount of an acreage rent 
collected under paragraph (1) shall be determined using 
the following equation: Acreage rent = A <dbl-dagger> B 
<dbl-dagger> ((1 + C)\D\)).
(B) Definitions.--For purposes of the equation 
described in subparagraph (A):
(i) The letter ``A'' means the Per-Acre Rate.
(ii) The letter ``B'' means the Encumbrance 
Factor.
(iii) The letter ``C'' means the Annual 
Adjustment Factor.
(iv) The letter ``D'' means the year in the 
term of the right-of-way.
(3) Payment until production.--The holder of a right-of-way 
for a renewable energy project shall pay an acreage rent 
collected under paragraph (1) until the date on which energy 
generation begins.

(c) Capacity Fees.--
(1) In general.--The Secretary shall, subject to paragraph 
(3), annually collect a capacity fee from the holder of a right-
of-way for a renewable energy project based on the amount 
described in paragraph (2).
(2) Calculation of capacity fee.--The amount of a capacity 
fee collected under paragraph (1) shall be equal to the greater 
of--
(A) an amount equal to the acreage rent described in 
subsection (b); and
(B) 3.9 percent of the gross proceeds from the sale 
of electricity produced by the renewable energy project.
(3) Multiple-use reduction factor.--
(A) Application.--The holder of a right-of-way for a 
wind energy generation project may request that the 
Secretary apply a multiple-use reduction factor of 10-
percent to the amount of a capacity fee determined under 
paragraph (2) by submitting to the Secretary an 
application at such time, in such manner, and containing 
such information as the Secretary may require.

[[Page 139 STAT. 150]]

(B) Approval.--The Secretary may approve an 
application submitted under subparagraph (A) only if not 
less than 25 percent of the land within the area of the 
right-of-way is authorized for use, occupancy, or 
development with respect to an activity other than the 
generation of wind energy for the entirety of the year 
in which the capacity fee is collected.
(C) Late determination.--
(i) <<NOTE: Applicability. Effective 
date. Time periods.>> In general.--If the 
Secretary approves an application under 
subparagraph (B) for a wind energy generation 
project after the date on which the holder of the 
right-of-way for the project begins paying a 
capacity fee, the Secretary shall apply the 
multiple-use reduction factor described in 
subparagraph (A) to the capacity fee for the first 
year beginning after the date of approval and each 
year thereafter for the period during which the 
right-of-way remains in effect.
(ii) Refund.--The Secretary may not refund the 
holder of a right-of-way for the difference in the 
amount of a capacity fee paid in a previous year.

(d) <<NOTE: Deadlines.>> Late Payment Fee; Termination.--
(1) In general.--The Secretary may charge the holder of a 
right-of-way for a renewable energy project a late payment fee 
if the Secretary does not receive payment for the acreage rent 
under subsection (b) or the capacity fee under subsection (c) by 
the date that is 15 days after the date on which the payment was 
due.
(2) Termination of right-of-way.--The Secretary may 
terminate a right-of-way for a renewable energy project if the 
Secretary does not receive payment for the acreage rent under 
subsection (b) or the capacity fee under subsection (c) by the 
date that is 90 days after the date on which the payment was 
due.
SEC. 50303. <<NOTE: 43 USC 3008.>> RENEWABLE ENERGY REVENUE 
SHARING.

(a) Definitions.--In this section:
(1) County.--The term ``county'' includes a parish, 
township, borough, and any other similar, independent unit of 
local government.
(2) Covered land.--The term ``covered land'' means land that 
is--
(A) public land administered by the Secretary; and
(B) not excluded from the development of solar or 
wind energy under--
(i) a land use plan; or
(ii) other Federal law.
(3) National forest system.--
(A) In general.--The term ``National Forest System'' 
means land of the National Forest System (as defined in 
section 11(a) of the Forest and Rangeland Renewable 
Resources Planning Act of 1974 (16 U.S.C. 1609(a))) 
administered by the Secretary of Agriculture.
(B) Exclusion.--The term ``National Forest System'' 
does not include any forest reserve not created from the 
public domain.
(4) Public land.--The term ``public land'' means--

[[Page 139 STAT. 151]]

(A) public lands (as defined in section 103 of the 
Federal Land Policy and Management Act of 1976 (43 
U.S.C. 1702)); and
(B) National Forest System land.
(5) Renewable energy project.--The term ``renewable energy 
project'' means a system described in section 2801.9(a)(4) of 
title 43, Code of Federal Regulations (as in effect on the date 
of enactment of this Act), located on covered land that uses 
wind or solar energy to generate energy.
(6) Secretary.--The term ``Secretary'' means--
(A) the Secretary of the Interior, with respect to 
land controlled or administered by the Secretary of the 
Interior; and
(B) the Secretary of Agriculture, with respect to 
National Forest System land.

(b) Disposition of Revenue.--
(1) <<NOTE: Effective date.>> Disposition of revenues.--
Beginning on January 1, 2026, the amounts collected from a 
renewable energy project as bonus bids, rentals, fees, or other 
payments under a right-of-way, permit, lease, or other 
authorization shall--
(A) be deposited in the general fund of the 
Treasury; and
(B) <<NOTE: Allocations.>> without further 
appropriation or fiscal year limitation, be allocated as 
follows:
(i) 25 percent shall be paid from amounts in 
the general fund of the Treasury to the State 
within the boundaries of which the revenue is 
derived.
(ii) 25 percent shall be paid from amounts in 
the general fund of the Treasury to each county in 
a State within the boundaries of which the revenue 
is derived, to be allocated among each applicable 
county based on the percentage of county land from 
which the revenue is derived.
(2) Payments to states and counties.--
(A) In general.--Amounts paid to States and counties 
under paragraph (1) shall be used in accordance with the 
requirements of section 35 of the Mineral Leasing Act 
(30 U.S.C. 191).
(B) Payments in lieu of taxes.--A payment to a 
county under paragraph (1) shall be in addition to a 
payment in lieu of taxes received by the county under 
chapter 69 of title 31, United States Code.
(C) Timing.--The amounts required to be paid under 
paragraph (1)(B) for an applicable fiscal year shall be 
made available in the fiscal year that immediately 
follows the fiscal year for which the amounts were 
collected.
SEC. 50304. RESCISSION OF NATIONAL PARK SERVICE AND BUREAU OF LAND 
MANAGEMENT FUNDS.

There are rescinded the unobligated balances of amounts made 
available by the following sections of Public Law 117-169 (commonly 
known as the ``Inflation Reduction Act of 2022'') (136 Stat. 1818):
(1) Section 50221 (136 Stat. 2052).
(2) Section 50222 (136 Stat. 2052).
(3) Section 50223 (136 Stat. 2052).

[[Page 139 STAT. 152]]

SEC. 50305. <<NOTE: Appropriation authorization. Time 
period. Expiration date.>> CELEBRATING 
AMERICA'S 250TH ANNIVERSARY.

In addition to amounts otherwise available, there is appropriated to 
the Secretary of the Interior (acting through the Director of the 
National Park Service) for fiscal year 2025, out of any money in the 
Treasury not otherwise appropriated, $150,000,000 for events, 
celebrations, and activities surrounding the observance and 
commemoration of the 250th anniversary of the founding of the United 
States, to remain available through fiscal year 2028.

Subtitle D--Energy

SEC. 50401. STRATEGIC PETROLEUM RESERVE.

(a) Energy Policy and Conservation Act Definitions.--In this 
section, the terms ``related facility'', ``storage facility'', and 
``Strategic Petroleum Reserve'' have the meanings given those terms in 
section 152 of the Energy Policy and Conservation Act (42 U.S.C. 6232).
(b) <<NOTE: Time period. Expiration date.>> Appropriations.--In 
addition to amounts otherwise available, there is appropriated to the 
Department of Energy for fiscal year 2025, out of any money in the 
Treasury not otherwise appropriated, to remain available until September 
30, 2029--
(1) $218,000,000 for maintenance of, including repairs to, 
storage facilities and related facilities of the Strategic 
Petroleum Reserve; and
(2) $171,000,000 to acquire, by purchase, petroleum products 
for storage in the Strategic Petroleum Reserve.

(c) Repeal of Strategic Petroleum Reserve Drawdown and Sale 
Mandate.--Section 20003 of Public Law 115-97 (42 U.S.C. 6241 note) is 
repealed.
SEC. 50402. REPEALS; RESCISSIONS.

(a) Repeal and Rescission.--Section 50142 of Public Law 117-169 (136 
Stat. 2044) (commonly known as the ``Inflation Reduction Act of 2022'') 
is repealed and the unobligated balance of amounts made available under 
that section (as in effect on the day before the date of enactment of 
this Act) is rescinded.
(b) Rescissions.--
(1) In general.--The unobligated balances of amounts made 
available under the sections described in paragraph (2) are 
rescinded.
(2) Sections described.--The sections referred to in 
paragraph (1) are the following sections of Public Law 117-169 
(commonly known as the ``Inflation Reduction Act of 2022''):
(A) Section 50123 (42 U.S.C. 18795b).
(B) Section 50141 (136 Stat. 2042).
(C) Section 50144 (136 Stat. 2044).
(D) Section 50145 (136 Stat. 2045).
(E) Section 50151 (42 U.S.C. 18715).
(F) Section 50152 (42 U.S.C. 18715a).
(G) Section 50153 (42 U.S.C. 18715b).
(H) Section 50161 (42 U.S.C. 17113b).
SEC. 50403. ENERGY DOMINANCE FINANCING.

(a) In General.--Section 1706 of the Energy Policy Act of 2005 (42 
U.S.C. 16517) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``or'' at the end;

[[Page 139 STAT. 153]]

(B) in paragraph (2), by striking ``avoid'' and all 
that follows through the period at the end and inserting 
``increase capacity or output; or''; and
(C) by adding at the end the following:
``(3) support or enable the provision of known or 
forecastable electric supply at time intervals necessary to 
maintain or enhance grid reliability or other system adequacy 
needs.'';
(2) by striking subsection (c);
(3) by redesignating subsections (d) through (f) as 
subsections (c) through (e), respectively;
(4) in subsection (c) (as so redesignated)--
(A) in paragraph (1), by adding ``and'' at the end;
(B) by striking paragraph (2); and
(C) by redesignating paragraph (3) as paragraph (2);
(5) in subsection (e) (as so redesignated), by striking 
``for--'' in the matter preceding paragraph (1) and all that 
follows through the period at the end of paragraph (2) and 
inserting ``for enabling the identification, leasing, 
development, production, processing, transportation, 
transmission, refining, and generation needed for energy and 
critical minerals.''; and
(6) by adding at the end the following:

``(f) Funding.--
``(1) <<NOTE: Time period. Expiration date.>> In general.--
In addition to amounts otherwise available, there is 
appropriated to the Secretary for fiscal year 2025, out of any 
money in the Treasury not otherwise appropriated, 
$1,000,000,000, to remain available through September 30, 2028, 
to carry out activities under this section.
``(2) Administrative costs.--Of the amount made available 
under paragraph (1), the Secretary shall use not more than 3 
percent for administrative expenses.''.

(b) Commitment Authority.--Section 50144(b) of Public Law 117-169 
(commonly known as the ``Inflation Reduction Act of 2022'') (136 Stat. 
2045) is amended by striking ``2026'' and inserting ``2028''.
SEC. 50404. <<NOTE: 15 USC 9461 note.>> TRANSFORMATIONAL 
ARTIFICIAL INTELLIGENCE MODELS.

(a) Definitions.--In this section:
(1) American science cloud.--The term ``American science 
cloud'' means a system of United States government, academic, 
and private sector programs and infrastructures utilizing cloud 
computing technologies to facilitate and support scientific 
research, data sharing, and computational analysis across 
various disciplines while ensuring compliance with applicable 
legal, regulatory, and privacy standards.
(2) Artificial intelligence.--The term ``artificial 
intelligence'' has the meaning given the term in section 5002 of 
the National Artificial Intelligence Initiative Act of 2020 (15 
U.S.C. 9401).

(b) Transformational Models.--The Secretary of Energy shall--
(1) mobilize National Laboratories to partner with industry 
sectors within the United States to curate the scientific data 
of the Department of Energy across the National Laboratory 
complex so that the data is structured, cleaned, and 
preprocessed in a way that makes it suitable for use in 
artificial intelligence and machine learning models; and

[[Page 139 STAT. 154]]

(2) initiate seed efforts for self-improving artificial 
intelligence models for science and engineering powered by the 
data described in paragraph (1).

(c) Uses.--
(1) Microelectronics.--The curated data described in 
subsection (b)(1) may be used to rapidly develop next-generation 
microelectronics that have greater capabilities beyond Moore's 
law while requiring lower energy consumption.
(2) New energy technologies.--The artificial intelligence 
models developed under subsection (b)(2) shall be provided to 
the scientific community through the American science cloud to 
accelerate innovation in discovery science and engineering for 
new energy technologies.

(d) Appropriations.--There is appropriated, out of any funds in the 
Treasury not otherwise appropriated, $150,000,000, to remain available 
through September 30, 2026, to carry out this section.

Subtitle E--Water

SEC. 50501. <<NOTE: Appropriation authorization. Time 
period. Expiration date.>> WATER 
CONVEYANCE AND SURFACE WATER STORAGE 
ENHANCEMENT.

In addition to amounts otherwise available, there is appropriated to 
the Secretary of the Interior, acting through the Commissioner of 
Reclamation, for fiscal year 2025, out of any funds in the Treasury not 
otherwise appropriated, $1,000,000,000, to remain available through 
September 30, 2034, for construction and associated activities that 
restore or increase the capacity or use of existing conveyance 
facilities constructed by the Bureau of Reclamation or for construction 
and associated activities that increase the capacity of existing Bureau 
of Reclamation surface water storage facilities, in a manner as 
determined by the Secretary of the Interior, acting through the 
Commissioner of Reclamation: Provided, That, 
for <<NOTE: Contracts.>> the purposes of section 203 of the Reclamation 
Reform Act of 1982 (43 U.S.C. 390cc) or section 3404(a) of the 
Reclamation Projects Authorization and Adjustment Act of 1992 (Public 
Law 102-575; 106 Stat. 4708), a contract or agreement entered into 
pursuant to this section shall not be treated as a new or amended 
contract: Provided further, That none of the funds provided under this 
section shall be reimbursable or subject to matching or cost-sharing 
requirements.

TITLE VI--COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS

SEC. 60001. RESCISSION OF FUNDING FOR CLEAN HEAVY-DUTY VEHICLES.

The unobligated balances of amounts made available to carry out 
section 132 of the Clean Air Act (42 U.S.C. 7432) are rescinded.
SEC. 60002. <<NOTE: Rescission.>> REPEAL OF GREENHOUSE GAS 
REDUCTION FUND.

Section 134 of the Clean Air Act (42 U.S.C. 7434) is repealed and 
the unobligated balances of amounts made available to carry out that 
section (as in effect on the day before the date of enactment of this 
Act) are rescinded.

[[Page 139 STAT. 155]]

SEC. 60003. RESCISSION OF FUNDING FOR DIESEL EMISSIONS REDUCTIONS.

The unobligated balances of amounts made available to carry out 
section 60104 of Public Law 117-169 (136 Stat. 2067) are rescinded.
SEC. 60004. RESCISSION OF FUNDING TO ADDRESS AIR POLLUTION.

The unobligated balances of amounts made available to carry out 
section 60105 of Public Law 117-169 (136 Stat. 2067) are rescinded.
SEC. 60005. RESCISSION OF FUNDING TO ADDRESS AIR POLLUTION AT 
SCHOOLS.

The unobligated balances of amounts made available to carry out 
section 60106 of Public Law 117-169 (136 Stat. 2069) are rescinded.
SEC. 60006. RESCISSION OF FUNDING FOR THE LOW EMISSIONS 
ELECTRICITY PROGRAM.

The unobligated balances of amounts made available to carry out 
section 135 of the Clean Air Act (42 U.S.C. 7435) are rescinded.
SEC. 60007. RESCISSION OF FUNDING FOR SECTION 211(O) OF THE CLEAN 
AIR ACT.

The unobligated balances of amounts made available to carry out 
section 60108 of Public Law 117-169 (136 Stat. 2070) are rescinded.
SEC. 60008. RESCISSION OF FUNDING FOR IMPLEMENTATION OF THE 
AMERICAN INNOVATION AND MANUFACTURING 
ACT.

The unobligated balances of amounts made available to carry out 
section 60109 of Public Law 117-169 (136 Stat. 2071) are rescinded.
SEC. 60009. RESCISSION OF FUNDING FOR ENFORCEMENT TECHNOLOGY AND 
PUBLIC INFORMATION.

The unobligated balances of amounts made available to carry out 
section 60110 of Public Law 117-169 (136 Stat. 2071) are rescinded.
SEC. 60010. RESCISSION OF FUNDING FOR GREENHOUSE GAS CORPORATE 
REPORTING.

The unobligated balances of amounts made available to carry out 
section 60111 of Public Law 117-169 (136 Stat. 2072) are rescinded.
SEC. 60011. RESCISSION OF FUNDING FOR ENVIRONMENTAL PRODUCT 
DECLARATION ASSISTANCE.

The unobligated balances of amounts made available to carry out 
section 60112 of Public Law 117-169 (42 U.S.C. 4321 note; 136 Stat. 
2072) are rescinded.
SEC. 60012. RESCISSION OF FUNDING FOR METHANE EMISSIONS AND WASTE 
REDUCTION INCENTIVE PROGRAM FOR 
PETROLEUM AND NATURAL GAS SYSTEMS.

(a) Rescission.--The unobligated balances of amounts made available 
to carry out subsections (a) and (b) of section 136 of the Clean Air Act 
(42 U.S.C. 7436) are rescinded.

[[Page 139 STAT. 156]]

(b) Period.--Section 136(g) of the Clean Air Act (42 U.S.C. 7436(g)) 
is amended by striking ``calendar year 2024'' and inserting ``calendar 
year 2034''.
SEC. 60013. RESCISSION OF FUNDING FOR GREENHOUSE GAS AIR POLLUTION 
PLANS AND IMPLEMENTATION GRANTS.

The unobligated balances of amounts made available to carry out 
section 137 of the Clean Air Act (42 U.S.C. 7437) are rescinded.
SEC. 60014. RESCISSION OF FUNDING FOR ENVIRONMENTAL PROTECTION 
AGENCY EFFICIENT, ACCURATE, AND TIMELY 
REVIEWS.

The unobligated balances of amounts made available to carry out 
section 60115 of Public Law 117-169 (136 Stat. 2077) are rescinded.
SEC. 60015. RESCISSION OF FUNDING FOR LOW-EMBODIED CARBON LABELING 
FOR CONSTRUCTION MATERIALS.

The unobligated balances of amounts made available to carry out 
section 60116 of Public Law 117-169 (42 U.S.C. 4321 note; 136 Stat. 
2077) are rescinded.
SEC. 60016. RESCISSION OF FUNDING FOR ENVIRONMENTAL AND CLIMATE 
JUSTICE BLOCK GRANTS.

The unobligated balances of amounts made available to carry out 
section 138 of the Clean Air Act (42 U.S.C. 7438) are rescinded.
SEC. 60017. RESCISSION OF FUNDING FOR ESA RECOVERY PLANS.

The unobligated balances of amounts made available to carry out 
section 60301 of Public Law 117-169 (136 Stat. 2079) are rescinded.
SEC. 60018. RESCISSION OF FUNDING FOR ENVIRONMENTAL AND CLIMATE 
DATA COLLECTION.

The unobligated balances of amounts made available to carry out 
section 60401 of Public Law 117-169 (136 Stat. 2079) are rescinded.
SEC. 60019. RESCISSION OF NEIGHBORHOOD ACCESS AND EQUITY GRANT 
PROGRAM.

The unobligated balances of amounts made available to carry out 
section 177 of title 23, United States Code, are rescinded.
SEC. 60020. RESCISSION OF FUNDING FOR FEDERAL BUILDING ASSISTANCE.

The unobligated balances of amounts made available to carry out 
section 60502 of Public Law 117-169 (136 Stat. 2083) are rescinded.
SEC. 60021. RESCISSION OF FUNDING FOR LOW-CARBON MATERIALS FOR 
FEDERAL BUILDINGS.

The unobligated balances of amounts made available to carry out 
section 60503 of Public Law 117-169 (136 Stat. 2083) are rescinded.
SEC. 60022. RESCISSION OF FUNDING FOR GSA EMERGING AND SUSTAINABLE 
TECHNOLOGIES.

The unobligated balances of amounts made available to carry out 
section 60504 of Public Law 117-169 (136 Stat. 2083) are rescinded.

[[Page 139 STAT. 157]]

SEC. 60023. RESCISSION OF ENVIRONMENTAL REVIEW IMPLEMENTATION 
FUNDS.

The unobligated balances of amounts made available to carry out 
section 178 of title 23, United States Code, are rescinded.
SEC. 60024. RESCISSION OF LOW-CARBON TRANSPORTATION MATERIALS 
GRANTS.

The unobligated balances of amounts made available to carry out 
section 179 of title 23, United States Code, are rescinded.
SEC. 60025. JOHN F. KENNEDY CENTER FOR THE PERFORMING ARTS.

(a) <<NOTE: Appropriation authorization. Time period. Expiration 
date.>> In General.--In addition to amounts otherwise available, there 
is appropriated for fiscal year 2025, out of any money in the Treasury 
not otherwise appropriated, $256,657,000, to remain available until 
September 30, 2029, for necessary expenses for capital repair, 
restoration, maintenance backlog, and security structures of the 
building and site of the John F. Kennedy Center for the Performing Arts.

(b) Administrative Costs.--Of the amounts made available under 
subsection (a), not more than 3 percent may be used for administrative 
costs necessary to carry out this section.
SEC. 60026. PROJECT SPONSOR OPT-IN FEES FOR ENVIRONMENTAL REVIEWS.

Title I of the National Environmental Policy Act of 1969 (42 U.S.C. 
4331 et seq.) is amended by adding at the end the following:
``SEC. 112. <<NOTE: 42 USC 4336f.>> PROJECT SPONSOR OPT-IN FEES 
FOR ENVIRONMENTAL REVIEWS.

``(a) Process.--
``(1) Project sponsor.--A project sponsor that intends to 
pay a fee under this section for the preparation, or supervision 
of the preparation, of an environmental assessment or 
environmental impact statement for a project shall submit to the 
Council--
``(A) a description of the project; and
``(B) a declaration of whether the project sponsor 
intends to prepare the environmental assessment or 
environmental impact statement under section 107(f).
``(2) <<NOTE: Deadline. Notice.>> Council on environmental 
quality.--Not later than 15 days after the date on which the 
Council receives information described in paragraph (1) from a 
project sponsor, the Council shall provide to the project 
sponsor notice of the amount of the fee to be paid under this 
section, as determined under subsection (b).
``(3) Payment of fee.--A project sponsor may pay a fee under 
this section after receipt of the notice described in paragraph 
(2).
``(4) Deadline for environmental reviews for which a fee is 
paid.--Notwithstanding section 107(g)(1)--
``(A) an environmental assessment for which a fee is 
paid under this section shall be completed not later 
than 180 days after the date on which the fee is paid; 
and
``(B) an environmental impact statement for which a 
fee is paid under this section shall be completed not 
later than 1 year after the date of publication of the 
notice of intent to prepare the environmental impact 
statement.

[[Page 139 STAT. 158]]

``(b) Fee Amount.--The amount of a fee under this section shall be--
``(1) 125 percent of the anticipated costs to prepare the 
environmental assessment or environmental impact statement; and
``(2) in the case of an environmental assessment or 
environmental impact statement to be prepared in whole or in 
part by a project sponsor under section 107(f), 125 percent of 
the anticipated costs to supervise preparation of, and, as 
applicable, prepare, the environmental assessment or 
environmental impact statement.''.

TITLE VII--FINANCE

Subtitle A--Tax

SEC. 70001. REFERENCES TO THE INTERNAL REVENUE CODE OF 1986, ETC.

(a) References.--Except 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.
(b) <<NOTE: 26 USC 15 note.>> Certain Rules Regarding Effect of Rate 
Changes Not Applicable.--Section 15 of the Internal Revenue Code of 1986 
shall not apply to any change in rate of tax by reason of any provision 
of, or amendment made by, this title.

CHAPTER 1--PROVIDING PERMANENT TAX RELIEF FOR MIDDLE-CLASS FAMILIES AND 
WORKERS

SEC. 70101. EXTENSION AND ENHANCEMENT OF REDUCED RATES.

(a) In General.-- <<NOTE: 26 USC 1.>> Section 1(j) is amended--
(1) in paragraph (1), by striking ``, and before January 1, 
2026'', and
(2) by striking ``2018 Through 2025'' in the heading and 
inserting ``Beginning After 2017''.

(b) Inflation Adjustment.--Section 1(j)(3)(B)(i) is amended by 
inserting ``solely for purposes of determining the dollar amounts at 
which any rate bracket higher than 12 percent ends and at which any rate 
bracket higher than 22 percent begins,'' before ``subsection (f)(3)''.
(c) <<NOTE: 26 USC 1 note.>> Effective Date.--The amendments made by 
this section shall apply to taxable years beginning after December 31, 
2025.
SEC. 70102. EXTENSION AND ENHANCEMENT OF INCREASED STANDARD 
DEDUCTION.

(a) In General.--Section 63(c)(7) is amended--
(1) by striking ``, and before January 1, 2026'' in the 
matter preceding subparagraph (A), and
(2) by striking ``2018 Through 2025'' in the heading and 
inserting ``Beginning After 2017''.

(b) Additional Increase in Standard Deduction.--Paragraph (7) of 
section 63(c) is amended--
(1) by striking ``$18,000'' both places it appears in 
subparagraphs (A)(i) and (B)(ii) and inserting ``$23,625'',

[[Page 139 STAT. 159]]

(2) by striking ``$12,000'' both places it appears in 
subparagraphs (A)(ii) and (B)(ii) and inserting ``$15,750'',
(3) by striking ``2018'' in subparagraph (B)(ii) and 
inserting ``2025'', and
(4) by striking ``2017'' in subparagraph (B)(ii)(II) and 
inserting ``2024''.

(c) <<NOTE: 26 USC 63 note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2024.
SEC. 70103. TERMINATION OF DEDUCTION FOR PERSONAL EXEMPTIONS OTHER 
THAN TEMPORARY SENIOR DEDUCTION.

(a) In General.--Section 151(d)(5) is amended--.
(1) by striking ``2018 through 2025'' in the heading and 
inserting ``beginning after 2017'',
(2) by striking ``, and before January 1, 2026'', and
(3) by adding at the end the following new subparagraph:
``(C) <<NOTE: Definitions.>> Deduction for 
seniors.--
``(i) <<NOTE: Effective date.>> In general.--
In the case of a taxable year beginning before 
January 1, 2029, there shall be allowed a 
deduction in an amount equal to $6,000 for each 
qualified individual with respect to the taxpayer.
``(ii) Qualified individual.--For purposes of 
clause (i), the term `qualified individual' 
means--
``(I) the taxpayer, if the taxpayer 
has attained age 65 before the close of 
the taxable year, and
``(II) in the case of a joint 
return, the taxpayer's spouse, if such 
spouse has attained age 65 before the 
close of the taxable year.
``(iii) Limitation based on modified adjusted 
gross income.--
``(I) In general.--In the case of 
any taxpayer for any taxable year, the 
$6,000 amount in clause (i) shall be 
reduced (but not below zero) by 6 
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).
``(II) Modified adjusted gross 
income.--For purposes of this clause, 
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.
``(iv) Social security number required.--
``(I) In general.--Clause (i) shall 
not apply with respect to a qualified 
individual unless the taxpayer includes 
such qualified individual's social 
security number on the return of tax for 
the taxable year.
``(II) Social security number.--For 
purposes of subclause (I), the term 
`social security number' has the meaning 
given such term in section 24(h)(7).
``(v) <<NOTE: Applicability.>> Married 
individuals.--If the taxpayer is a married 
individual (within the meaning of section

[[Page 139 STAT. 160]]

7703), this subparagraph shall apply only if the 
taxpayer and the taxpayer's spouse file a joint 
return for the taxable year.''.

(b) Omission of Correct Social Security Number Treated as 
Mathematical or Clerical Error.--Section 6213(g)(2) is amended by 
striking ``and'' at the end of subparagraph (U), by striking the period 
at the end of subparagraph (V) and inserting ``, and'', and by inserting 
after subparagraph (V) the following new subparagraph:
``(W) an omission of a correct social security 
number required under section 151(d)(5)(C) (relating to 
deduction for seniors).''.

(c) <<NOTE: 26 USC 151 note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2024.
SEC. 70104. EXTENSION AND ENHANCEMENT OF INCREASED CHILD TAX 
CREDIT.

(a) Extension and Increase of Expanded Child Tax Credit.--Section 
24(h) is amended--
(1) in paragraph (1), by striking ``, and before January 1, 
2026'',
(2) in paragraph (2), by striking ``$2,000'' and inserting 
``$2,200'', and
(3) by striking ``2018 Through 2025'' in the heading and 
inserting ``Beginning After 2017''.

(b) Social Security Number Required.--Section 24(h)(7) is amended to 
read as follows:
``(7) Social security number required.--
``(A) In general.--No credit shall be allowed under 
this section to a taxpayer with respect to any 
qualifying child unless the taxpayer includes on the 
return of tax for the taxable year--
``(i) the taxpayer's social security number 
(or, in the case of a joint return, the social 
security number of at least 1 spouse), and
``(ii) the social security number of such 
qualifying child.
``(B) <<NOTE: Definition.>> Social security 
number.--For purposes of this paragraph, the term 
`social security number' means a social security number 
issued to an individual by the Social Security 
Administration, but only if the social security number 
is issued--
``(i) to a citizen of the United States or 
pursuant to subclause (I) (or that portion of 
subclause (III) that relates to subclause (I)) of 
section 205(c)(2)(B)(i) of the Social Security 
Act, and
``(ii) before the due date for such return.''.

(c) Inflation Adjustments.--Section 24(i) is amended to read as 
follows:
``(i) <<NOTE: Effective dates.>> Inflation Adjustments.--
``(1) Maximum amount of refundable credit.--In the case of a 
taxable year beginning after 2024, the $1,400 amount in 
subsection (h)(5) shall be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined under 
section 1(f)(3) for the calendar year in which the 
taxable

[[Page 139 STAT. 161]]

year begins, determined by substituting `2017' for 
`2016' in subparagraph (A)(ii) thereof.
``(2) Special rule for adjustment of credit amount.--In the 
case of a taxable year beginning after 2025, the $2,200 amount 
in subsection (h)(2) shall be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined under 
section 1(f)(3) for the calendar year in which the 
taxable year begins, determined by substituting `2024' 
for `2016' in subparagraph (A)(ii) thereof.
``(3) Rounding.--If any increase under this subsection is 
not a multiple of $100, such increase shall be rounded to the 
next lowest multiple of $100.''.

(d) Conforming Amendment.--Section 24(h)(5) is amended to read as 
follows:
``(5) <<NOTE: Applicability.>> Maximum amount of refundable 
credit.--The amount determined under subsection (d)(1)(A) with 
respect to any qualifying child shall not exceed $1,400, and 
such subsection shall be applied without regard to paragraph (4) 
of this subsection.''.

(e) Omission of Correct Social Security Number Treated as 
Mathematical or Clerical Error.--Section 6213(g)(2)(I) is amended by 
striking ``section 24(e)'' and inserting ``section 24''.
(f) <<NOTE: 26 USC 24 note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2024.
SEC. 70105. EXTENSION AND ENHANCEMENT OF DEDUCTION FOR QUALIFIED 
BUSINESS INCOME.

(a) Increase in Taxable Income Limitation Phase-in Amounts.--
(1) In general.--Subparagraph (B) of section 199A(b)(3) is 
amended by striking ``$50,000 ($100,000 in the case of a joint 
return)'' each place it appears and inserting ``$75,000 
($150,000 in the case of a joint return)''.
(2) Conforming amendment.--Paragraph (3) of section 199A(d) 
is amended by striking ``$50,000 ($100,000 in the case of a 
joint return)'' each place it appears and inserting ``$75,000 
($150,000 in the case of a joint return)''.

(b) Minimum Deduction for Active Qualified Business Income.--
(1) In general.--Subsection (i) of section 199A is amended 
to read as follows:

``(i) Minimum Deduction for Active Qualified Business Income.--
``(1) In general.--In the case of an applicable taxpayer for 
any taxable year, the deduction allowed under subsection (a) for 
the taxable year shall be equal to the greater of--
``(A) the amount of such deduction determined 
without regard to this subsection, or
``(B) $400.
``(2) <<NOTE: Definitions.>> Applicable taxpayer.--For 
purposes of this subsection--
``(A) In general.--The term `applicable taxpayer' 
means, with respect to any taxable year, a taxpayer 
whose aggregate qualified business income with respect 
to all

[[Page 139 STAT. 162]]

active qualified trades or businesses of the taxpayer 
for such taxable year is at least $1,000.
``(B) Active qualified trade or business.--The term 
`active qualified trade or business' means, with respect 
to any taxpayer for any taxable year, any qualified 
trade or business of the taxpayer in which the taxpayer 
materially participates (within the meaning of section 
469(h)).
``(3) <<NOTE: Effective date.>> Inflation adjustment.--In 
the case of any taxable year beginning after 2026, the $400 
amount in paragraph (1)(B) and the $1,000 amount in paragraph 
(2)(A) shall each be increased by an amount equal to --
``(A) such dollar amount, multiplied by
``(B) 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 2025' for `calendar year 2016' in 
subparagraph (A)(ii) thereof.
If any increase under this paragraph is not a multiple of $5, 
such increase shall be rounded to the nearest multiple of $5.''.
(2) Conforming amendment.--Section 199A(a) is amended by 
inserting ``except as provided in subsection (i),'' before 
``there''.

(c) <<NOTE: 26 USC 199A note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2025.
SEC. 70106. EXTENSION AND ENHANCEMENT OF INCREASED ESTATE AND GIFT 
TAX EXEMPTION AMOUNTS.

(a) In General.--Section 2010(c)(3) is amended--
(1) in subparagraph (A) by striking ``$5,000,000'' and 
inserting ``$15,000,000'',
(2) in subparagraph (B)--
(A) in the matter preceding clause (i), by striking 
``2011'' and inserting ``2026'', and
(B) in clause (ii), by striking ``calendar year 
2010'' and inserting ``calendar year 2025'', and
(3) by striking subparagraph (C).

(b) <<NOTE: 26 USC 2010 note.>> Effective Date.--The amendments made 
by this section shall apply to estates of decedents dying and gifts made 
after December 31, 2025.
SEC. 70107. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX 
EXEMPTION AMOUNTS AND MODIFICATION OF 
PHASEOUT THRESHOLDS.

(a) In General.--Section 55(d)(4) is amended--
(1) in subparagraph (A), by striking ``, and before January 
1, 2026'', and
(2) by striking ``and Before 2026'' in the heading.

(b) Modification of Inflation Adjustment.--Section 55(d)(4)(B) is 
amended--
(1) by striking ``2018'' and inserting ``2018 (2026, in the 
case of the $1,000,000 amount in subparagraph (A)(ii)(I))'', and
(2) by striking ``determined by substituting `calendar year 
2017' for `calendar year 2016' in subparagraph (A)(ii) 
thereof.'' and inserting ``determined by substituting for 
`calendar year 2016' in subparagraph (A)(ii) thereof--

[[Page 139 STAT. 163]]

``(1) `calendar year 2017', in the case of the $109,400 
amount in subparagraph (A)(i)(I) and the $70,300 amount in 
subparagraph (A)(i)(II), and
``(2) `calendar year 2025', in the case of the $1,000,000 
amount in subparagraph (A)(ii)(I).''.

(c) Modification of Phaseout Amount.--Section 55(d)(4)(A)(ii) is 
amended by striking ``and'' at the end of subclause (II), and by adding 
at the end the following new subclause:
``(IV) by substituting `50 percent' 
for `25 percent', and''.

(d) <<NOTE: 26 USC 55 note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2025.
SEC. 70108. EXTENSION AND MODIFICATION OF LIMITATION ON DEDUCTION 
FOR QUALIFIED RESIDENCE INTEREST.

(a) In General.--Section 163(h)(3)(F) is amended--
(1) in clause (i)--
(A) by striking ``, and before January 1, 2026'',
(B) by redesignating subclauses (III) and (IV) as 
subclauses (IV) and (V), respectively,
(C) by striking ``subclause (III)'' in subclause 
(V), as so redesignated, and inserting ``subclause 
(IV)'', and
(D) by inserting after subclause (II) the following 
new subclause:
``(III) Mortgage insurance premiums 
treated as interest.--Clause (iv) of 
subparagraph (E) shall not apply.'',
(2) by striking clause (ii) and redesignating clauses (iii) 
and (iv) as clauses (ii) and (iii), respectively, and
(3) by striking ``2018 Through 2025'' in the heading and 
inserting ``Beginning After 2017''.

(b) <<NOTE: 26 USC 163 note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2025.
SEC. 70109. EXTENSION AND MODIFICATION OF LIMITATION ON CASUALTY 
LOSS DEDUCTION.

(a) In General.--Section 165(h)(5) is amended--
(1) in subparagraph (A), by striking ``, and before January 
1, 2026'', and
(2) by striking ``2018 Through 2025'' in the heading and 
inserting ``Beginning After 2017''.

(b) Extension to State Declared Disasters.--
(1) In general.--Subparagraph (A) of section 165(h)(5), as 
amended by subsection (a), is further amended by striking 
``(i)(5))'' and inserting ``(i)(5)) or a State declared 
disaster''.
(2) Exception related to personal casualty gains.--Clause 
(i) of section 165(h)(5)(B) is amended by striking ``(as so 
defined)'' and inserting ``(as so defined) or a State declared 
disaster''.
(3) State declared disaster.--Paragraph (5) of section 
165(h) is amended by adding at the end the following new 
subparagraph:
``(C) <<NOTE: Definitions.>> State declared 
disaster.--For purposes of this paragraph--
``(i) In general.--The term `State declared 
disaster' means, with respect to any State, any 
natural catastrophe (including any hurricane, 
tornado, storm, high water, wind-driven water, 
tidal wave, tsunami,

[[Page 139 STAT. 164]]

earthquake, volcanic eruption, landslide, 
mudslide, snowstorm, or drought), or, regardless 
of cause, any fire, flood, or explosion, in any 
part of the State, which in the determination of 
the Governor of such State (or the Mayor, in the 
case of the District of Columbia) and the 
Secretary causes damage of sufficient severity and 
magnitude to warrant the application of the rules 
of this section.
``(ii) State.--The term `State' includes the 
District of Columbia, the Commonwealth of Puerto 
Rico, the Virgin Islands, Guam, American Samoa, 
and the Commonwealth of the Northern Mariana 
Islands.''.

(c) <<NOTE: 26 USC 165 note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2025.
SEC. 70110. TERMINATION OF MISCELLANEOUS ITEMIZED DEDUCTIONS OTHER 
THAN EDUCATOR EXPENSES.

(a) In General.--Section 67(g) is amended--
(1) by striking ``, and before January 1, 2026'', and
(2) by striking ``2018 Through 2025'' in the heading and 
inserting ``Beginning After 2017''.

(b) Deduction for Educator Expenses.--
(1) In general.--Section 67(b) is amended by striking 
``and'' at the end of paragraph (11), by striking the period at 
the end of paragraph (12) and inserting ``, and'', and by adding 
at the end the following new paragraph:
``(13) the deductions allowed by section 162 for educator 
expenses (as defined in subsection (g)).''.
(2) Inclusion of coaches and certain nonathletic 
instructional equipment.--Section 67 is amended by redesignating 
subsection (g), as amended by this section, as subsection (h), 
and by inserting after subsection (f) the following new section:

``(g) <<NOTE: Definition.>> Educator Expenses.--For purposes of 
subsection (b)(13), the term `educator expenses' means expenses of a 
type which would be described in section 62(a)(2)(D) if--
``(1) such section were applied--
``(A) without regard to the dollar limitation,
``(B) without regard to `(other than nonathletic 
supplies for courses of instruction in health or 
physical education)' in clause (ii) thereof, and
``(C) by substituting `as part of instructional 
activity' for `in the classroom' in clause (ii) thereof, 
and
``(2) section 62(d)(1)(A) were applied by inserting `, 
interscholastic sports administrator or coach,' after 
`counselor'.''.

(c) <<NOTE: 26 USC 67 note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2025.
SEC. 70111. LIMITATION ON TAX BENEFIT OF ITEMIZED DEDUCTIONS.

(a) In General.--Section 68 is amended to read as follows:
``(a) In General.--In the case of an individual, the amount of the 
itemized deductions otherwise allowable for the taxable year (determined 
without regard to this section) shall be reduced by \2/37\ of the lesser 
of--
``(1) such amount of itemized deductions, or
``(2) so much of the taxable income of the taxpayer for the 
taxable year (determined without regard to this section and 
increased by such amount of itemized deductions) as

[[Page 139 STAT. 165]]

exceeds the dollar amount at which the 37 percent rate bracket 
under section 1 begins with respect to the taxpayer.

``(b) <<NOTE: Applicability.>> Coordination With Other 
Limitations.--This section shall be applied after the application of any 
other limitation on the allowance of any itemized deduction.''.

(b) Limitation Not Applicable to Determination of Deduction for 
Qualified Business Income.--
(1) In general.--Section 199A(e)(1) is amended by inserting 
``without regard to section 68 and'' after ``shall be 
computed''.
(2) Patrons of specified agricultural and horticultural 
cooperatives.--Section 199A(g)(2)(B) is amended by inserting 
``section 68 or'' after ``without regard to''.

(c) <<NOTE: 26 USC 68 note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2025.
SEC. 70112. EXTENSION AND MODIFICATION OF QUALIFIED TRANSPORTATION 
FRINGE BENEFITS.

(a) In General.--Section 132(f) is amended--
(1) by striking subparagraph (D) of paragraph (1),
(2) in paragraph (2), by inserting ``and'' at the end of 
subparagraph (A), by striking ``, and'' at the end of 
subparagraph (B) and inserting a period, and by striking 
subparagraph (C),
(3) by striking ``(other than a qualified bicycle commuting 
reimbursement)'' in paragraph (4),
(4) by striking subparagraph (F) of paragraph (5), and
(5) by striking paragraph (8).

(b) Inflation Adjustment.--Clause (ii) of section 132(f)(6)(A) is 
amended by striking ``1998'' in clause (ii) and inserting ``1997''.
(c) Coordination With Disallowance of Certain Expenses.--Subsection 
(l) of section 274 is amended--
(1) by striking ``Benefits.--'' and all that follows through 
``No deduction'' and inserting ``Benefits.--No deduction'', and
(2) by striking paragraph (2).

(d) <<NOTE: 26 USC 132 note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2025.
SEC. 70113. EXTENSION AND MODIFICATION OF LIMITATION ON DEDUCTION 
AND EXCLUSION FOR MOVING EXPENSES.

(a) Extension of Limitation on Deduction.--Section 217(k) is 
amended--
(1) by striking ``, and before January 1, 2026'', and
(2) by striking ``2018 Through 2025'' in the heading and 
inserting ``Beginning After 2017''.

(b) Allowance of Deduction for Members of the Intelligence 
Community.--Section 217(k), as amended by subsection (a), is further 
amended--
(1) by striking ``2017.--Except in the case'' and inserting 
``2017.--
``(1) In general.--Except in the case'', and
(2) by adding at the end the following new paragraph:
``(2) Members of the intelligence community.--An employee or 
new appointee of the intelligence community (as defined in 
section 3 of the National Security Act of 1947 (50 U.S.C. 3003)) 
(other than a member of the Armed Forces of the United States) 
who moves pursuant to a change in assignment which requires 
relocation shall be treated for purposes

[[Page 139 STAT. 166]]

of this section in the same manner as an individual to whom 
subsection (g) applies.''.

(c) Extension of Limitation on Exclusion.--Section 132(g)(2) is 
amended--
(1) by striking ``, and before January 1, 2026'', and
(2) by striking ``2018 Through 2025'' in the heading and 
inserting ``Beginning After 2017''.

(d) Allowance of Exclusion for Members of the Intelligence 
Community.--Section 132(g)(2) of the Internal Revenue Code of 1986 is 
amended by inserting ``, or an employee or new appointee of the 
intelligence community (as defined in section 3 of the National Security 
Act of 1947 (50 U.S.C. 3003)) (other than a member of the Armed Forces 
of the United States) who moves pursuant to a change in assignment that 
requires relocation'' after ``change of station''.
(e) <<NOTE: 26 USC 132 note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2025.
SEC. 70114. EXTENSION AND MODIFICATION OF LIMITATION ON WAGERING 
LOSSES.

(a) In General.--Section 165 is amended by striking subsection (d) 
and inserting the following:
``(d) Wagering Losses.--
``(1) In general.--For purposes of losses from wagering 
transactions, the amount allowed as a deduction for any taxable 
year--
``(A) shall be equal to 90 percent of the amount of 
such losses during such taxable year, and
``(B) shall be allowed only to the extent of the 
gains from such transactions during such taxable year.
``(2) <<NOTE: Definition.>> Special rule.--For purposes of 
paragraph (1), the term `losses from wagering transactions' 
includes any deduction otherwise allowable under this chapter 
incurred in carrying on any wagering transaction.''.

(b) <<NOTE: 26 USC 165 note.>> Effective Date.--The amendment made 
by this section shall apply to taxable years beginning after December 
31, 2025.
SEC. 70115. EXTENSION AND ENHANCEMENT OF INCREASED LIMITATION ON 
CONTRIBUTIONS TO ABLE ACCOUNTS.

(a) In General.--Section 529A(b)(2)(B) is amended--
(1) in clause (i), by inserting ``(determined by 
substituting `1996' for `1997' in paragraph (2)(B) thereof)'' 
after ``section 2503(b)'', and
(2) in clause (ii), by striking ``before January 1, 2026''.

(b) <<NOTE: Applicability. 26 USC 529A note.>> Effective Dates.--
(1) In general.--Except as otherwise provided in this 
subsection, the amendments made by this section shall apply to 
contributions made after December 31, 2025.
(2) Modified inflation adjustment.--The amendment made by 
subsection (a)(1) shall apply to taxable years beginning after 
December 31, 2025.
SEC. 70116. EXTENSION AND ENHANCEMENT OF SAVERS CREDIT ALLOWED FOR 
ABLE CONTRIBUTIONS.

(a) Extension.--
(1) In general.--Section 25B(d)(1) is amended to read as 
follows:

[[Page 139 STAT. 167]]

``(1) <<NOTE: Definition.>> In general.--The term `qualified 
retirement savings contributions' means, with respect to any 
taxable year, the sum of--
``(A) the amount of contributions made by the 
eligible individual during such taxable year to the ABLE 
account (within the meaning of section 529A) of which 
such individual is the designated beneficiary, and
``(B) in the case of any taxable year beginning 
before January 1, 2027--
``(i) the amount of the qualified retirement 
contributions (as defined in section 219(e)) made 
by the eligible individual,
``(ii) the amount of--
``(I) any elective deferrals (as 
defined in section 402(g)(3)) of such 
individual, and
``(II) any elective deferral of 
compensation by such individual under an 
eligible deferred compensation plan (as 
defined in section 457(b)) of an 
eligible employer described in section 
457(e)(1)(A), and
``(iii) the amount of voluntary employee 
contributions by such individual to any qualified 
retirement plan (as defined in section 
4974(c)).''.
(2) <<NOTE: Applicability. 26 USC 25B note.>> Coordination 
with secure 2.0 act of 2022 amendment.--Paragraph (1) of section 
103(e) of the SECURE 2.0 Act of 2022 is <<NOTE: 26 USC 
25B.>> repealed, and the Internal Revenue Code of 1986 shall be 
applied and administered as though such paragraph were never 
enacted.
(3) <<NOTE: 26 USC 25B note.>> Effective date.--The 
amendments and repeal made by this subsection shall apply to 
taxable years ending after December 31, 2025.

(b) Increase of Credit Amount.--
(1) In general.--Section 25B(a) is amended by striking 
``$2,000'' and inserting ``$2,100''.
(2) <<NOTE: 26 USC 25B note.>> Effective date.--The 
amendment made by this subsection shall apply to taxable years 
beginning after December 31, 2026.
SEC. 70117. EXTENSION OF ROLLOVERS FROM QUALIFIED TUITION PROGRAMS 
TO ABLE ACCOUNTS PERMITTED.

(a) In General.--Section 529(c)(3)(C)(i)(III) is amended by striking 
``before January 1, 2026,''.
(b) <<NOTE: 26 USC 529 note.>> Effective Date.--The amendment made 
by this section shall apply to taxable years beginning after December 
31, 2025.
SEC. 70118. EXTENSION OF TREATMENT OF CERTAIN INDIVIDUALS 
PERFORMING SERVICES IN THE SINAI 
PENINSULA AND ENHANCEMENT TO INCLUDE 
ADDITIONAL AREAS.

(a) Treatment Made Permanent.--Section 11026(a) of Public Law 115-
97 <<NOTE: 26 USC 112 note.>> is amended by striking ``, with respect to 
the applicable period''.

(b) Kenya, Mali, Burkina Faso, and Chad Included as Hazardous Duty 
Areas.--Section 11026(b) of Public Law 115-97 is amended to read as 
follows:
``(b) <<NOTE: Definition.>> Qualified Hazardous Duty Area.--For 
purposes of this section, the term `qualified hazardous duty area' means 
each of the following locations, but only during the period for which 
any member of the Armed Forces of the United States is entitled to

[[Page 139 STAT. 168]]

special pay under section 310 of title 37, United States Code (relating 
to special pay; duty subject to hostile fire or imminent danger), for 
services performed in such location:
``(1) the Sinai Peninsula of Egypt.
``(2) Kenya.
``(3) Mali.
``(4) Burkina Faso.
``(5) Chad.''.

(c) Conforming Amendment.--Section 11026 of Public Law 115-97 is 
amended by striking subsections (c) and (d).
(d) <<NOTE: 26 USC 112 note.>> Effective Date.--The amendments made 
by this section shall take effect on January 1, 2026.
SEC. 70119. EXTENSION AND MODIFICATION OF EXCLUSION FROM GROSS 
INCOME OF STUDENT LOANS DISCHARGED ON 
ACCOUNT OF DEATH OR DISABILITY.

(a) In General.--Section 108(f)(5) is amended to read as follows:
``(5) Discharges on account of death or disability.--
``(A) In general.--In the case of an individual, 
gross income does not include any amount which (but for 
this subsection) would be includible in gross income for 
such taxable year by reason of the discharge (in whole 
or in part) of any loan described in subparagraph (B), 
if such discharge was--
``(i) pursuant to subsection (a) or (d) of 
section 437 of the Higher Education Act of 1965 or 
the parallel benefit under part D of title IV of 
such Act (relating to the repayment of loan 
liability),
``(ii) pursuant to section 464(c)(1)(F) of 
such Act, or
``(iii) otherwise discharged on account of 
death or total and permanent disability of the 
student.
``(B) Loans discharged.--A loan is described in this 
subparagraph if such loan is--
``(i) a student loan (as defined in paragraph 
(2)), or
``(ii) a private education loan (as defined in 
section 140(a) of the Consumer Credit Protection 
Act (15 U.S.C. 1650(a)).
``(C) Social security number requirement.--
``(i) In general.--Subparagraph (A) shall not 
apply with respect to any discharge during any 
taxable year unless the taxpayer includes the 
taxpayer's social security number on the return of 
tax for such taxable year.
``(ii) <<NOTE: Definition.>> Social security 
number.--For purposes of this subparagraph, the 
term `social security number' has the meaning 
given such term in section 24(h)(7).''.

(b) Omission of Correct Social Security Number Treated as 
Mathematical or Clerical Error.--Section 6213(g)(2), as amended by this 
Act, is further amended by striking ``and'' at the end of subparagraph 
(V), by striking the period at the end of subparagraph (W) and inserting 
``, and'', and by inserting after subparagraph (W) the following new 
subparagraph:

[[Page 139 STAT. 169]]

``(X) an omission of a correct social security 
number required under section 108(f)(5)(C) (relating to 
discharges on account of death or disability).''.

(c) <<NOTE: 26 USC 108 note.>> Effective Date.--The amendments made 
by this section shall apply to discharges after December 31, 2025.
SEC. 70120. LIMITATION ON INDIVIDUAL DEDUCTIONS FOR CERTAIN STATE 
AND LOCAL TAXES, ETC.

(a) In General.--Section 164(b)(6) is amended--
(1) by striking ``and before January 1, 2026'', and
(2) by striking ``$10,000 ($5,000 in the case of a married 
individual filing a separate return)'' and inserting ``the 
applicable limitation amount (half the applicable limitation 
amount in the case of a married individual filing a separate 
return)''.

(b) Applicable Limitation Amount.--Section 164(b) is amended by 
adding at the end the following new paragraph:
``(7) <<NOTE: Definitions.>> Applicable limitation amount.--
``(A) In general.--For purposes of paragraph (6), 
the term `applicable limitation amount' means--
``(i) in the case of any taxable year 
beginning in calendar year 2025, $40,000,
``(ii) in the case of any taxable year 
beginning in calendar year 2026, $40,400,
``(iii) in the case of any taxable year 
beginning after calendar year 2026 and before 
2030, 101 percent of the dollar amount in effect 
under this subparagraph for taxable years 
beginning in the preceding calendar year, and
``(iv) in the case of any taxable year 
beginning after calendar year 2029, $10,000.
``(B) Phasedown based on modified adjusted gross 
income.--
``(i) In general.--Except as provided in 
clause (iii), in the case of any taxable year 
beginning before January 1, 2030, the applicable 
limitation amount shall be reduced by 30 percent 
of the excess (if any) of the taxpayer's modified 
adjusted gross income over the threshold amount 
(half the threshold amount in the case of a 
married individual filing a separate return).
``(ii) Threshold amount.--For purposes of this 
subparagraph, the term `threshold amount' means--
``(I) in the case of any taxable 
year beginning in calendar year 2025, 
$500,000,
``(II) in the case of any taxable 
year beginning in calendar year 2026, 
$505,000, and
``(III) in the case of any taxable 
year beginning after calendar year 2026, 
101 percent of the dollar amount in 
effect under this subparagraph for 
taxable years beginning in the preceding 
calendar year.
``(iii) Limitation on reduction.--The 
reduction under clause (i) shall not result in the 
applicable limitation amount being less than 
$10,000.
``(iv) Modified adjusted gross income.--For 
purposes of this paragraph, the term `modified 
adjusted

[[Page 139 STAT. 170]]

gross income' means adjusted gross income 
increased by any amount excluded from gross income 
under section 911, 931, or 933.''.

(c) <<NOTE: 26 USC 164 note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2024.

CHAPTER 2--DELIVERING ON PRESIDENTIAL PRIORITIES TO PROVIDE NEW MIDDLE-
CLASS TAX RELIEF

SEC. 70201. NO TAX ON TIPS.

(a) Deduction Allowed.--Part VII of subchapter B of chapter 1 is 
amended by redesignating section 224 as section 225 and by inserting 
after section 223 the following new section:
``SEC. <<NOTE: 26 USC 224.>> 224. QUALIFIED TIPS.

``(a) In General.--There shall be allowed as a deduction an amount 
equal to the qualified tips received during the taxable year that are 
included on statements furnished to the individual pursuant to section 
6041(d)(3), 6041A(e)(3), 6050W(f)(2), or 6051(a)(18), or reported by the 
taxpayer on Form 4137 (or successor).
``(b) Limitation.--
``(1) In general.--The amount allowed as a deduction under 
this section for any taxable year shall not exceed $25,000.
``(2) Limitation based on adjusted gross income.--
``(A) In general.--The amount allowable as a 
deduction under subsection (a) (after application of 
paragraph (1)) shall be reduced (but not below zero) by 
$100 for each $1,000 by which the taxpayer's modified 
adjusted gross income exceeds $150,000 ($300,000 in the 
case of a joint return).
``(B) <<NOTE: Definition.>> Modified adjusted gross 
income.--For purposes of this paragraph, 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) Tips Received in Course of Trade or Business.--In the case of 
qualified tips received by an individual during any taxable year in the 
course of a trade or business (other than the trade or business of 
performing services as an employee) of such individual, such qualified 
tips shall be taken into account under subsection (a) only to the extent 
that the gross income for the taxpayer from such trade or business for 
such taxable year (including such qualified tips) exceeds the sum of the 
deductions (other than the deduction allowed under this section) 
allocable to the trade or business in which such qualified tips are 
received by the individual for such taxable year.
``(d) <<NOTE: Definitions.>> Qualified Tips.--For purposes of this 
section--
``(1) In general.--The term `qualified tips' means cash tips 
received by an individual in an occupation which customarily and 
regularly received tips on or before December 31, 2024, as 
provided by the Secretary.
``(2) Exclusions.--Such term shall not include any amount 
received by an individual unless--
``(A) such amount is paid voluntarily without any 
consequence in the event of nonpayment, is not the 
subject of negotiation, and is determined by the payor,

[[Page 139 STAT. 171]]

``(B) the trade or business in the course of which 
the individual receives such amount is not a specified 
service trade or business (as defined in section 
199A(d)(2)), and
``(C) such other requirements as may be established 
by the Secretary in regulations or other guidance are 
satisfied.
For purposes of subparagraph (B), in the case of an individual 
receiving tips in the trade or business of performing services 
as an employee, such individual shall be treated as receiving 
tips in the course of a trade or business which is a specified 
service trade or business if the trade or business of the 
employer is a specified service trade or business.
``(3) Cash tips.--For purposes of paragraph (1), the term 
`cash tips' includes tips received from customers that are paid 
in cash or charged and, in the case of an employee, tips 
received under any tip-sharing arrangement.

``(e) Social Security Number Required.--
``(1) In general.--No deduction shall be allowed under this 
section unless the taxpayer includes on the return of tax for 
the taxable year such individual's social security number.
``(2) Social security number defined.--For purposes of 
paragraph (1), the term `social security number' shall have the 
meaning given such term in section 24(h)(7).

``(f) <<NOTE: Applicability.>> Married Individuals.--If the taxpayer 
is a married individual (within the meaning of section 7703), this 
section shall apply only if the taxpayer and the taxpayer's spouse file 
a joint return for the taxable year.

``(g) <<NOTE: Guidance.>> Regulations.--The Secretary shall 
prescribe such regulations or other guidance as may be necessary to 
prevent reclassification of income as qualified tips, including 
regulations or other guidance to prevent abuse of the deduction allowed 
by this section.

``(h) Termination.--No deduction shall be allowed under this section 
for any taxable year beginning after December 31, 2028.''.
(b) Deduction Allowed to Non-itemizers.--Section 63(b) 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 deduction provided in section 224.''.

(c) Omission of Correct Social Security Number Treated as 
Mathematical or Clerical Error.--Section 6213(g)(2), as amended by the 
preceding provisions of this Act, is amended by striking ``and'' at the 
end of subparagraph (W), by striking the period at the end of 
subparagraph (X) and inserting ``, and'', and by inserting after 
subparagraph (X) the following new subparagraph:
``(Y) an omission of a correct social security 
number required under section 224(e) (relating to 
deduction for qualified tips).''.

(d) Exclusion From Qualified Business Income.--Section 199A(c)(4) is 
amended by striking ``and'' at the end of subparagraph (B), by striking 
the period at the end of subparagraph (C) and inserting ``, and'', and 
by adding at the end the following new subparagraph:
``(D) any amount with respect to which a deduction 
is allowable to the taxpayer under section 224(a) for 
the taxable year.''.

(e) Extension of Tip Credit to Beauty Service Business.--

[[Page 139 STAT. 172]]

(1) In general.--Section 45B(b)(2) is amended to read as 
follows:
``(2) Application only to certain lines of business.--In 
applying paragraph (1) there shall be taken into account only 
tips received from customers or clients in connection with the 
following services:
``(A) The providing, delivering, or serving of food 
or beverages for consumption, if the tipping of 
employees delivering or serving food or beverages by 
customers is customary.
``(B) The providing of any of the following services 
to a customer or client if the tipping of employees 
providing such services is customary:
``(i) Barbering and hair care.
``(ii) Nail care.
``(iii) Esthetics.
``(iv) Body and spa treatments.''.
(2) Credit determined with respect to minimum wage in 
effect.--Section 45B(b)(1)(B) is amended--
(A) by striking ``as in effect on January 1, 2007, 
and'', and
(B) by inserting ``, and in the case of food or 
beverage establishments, as in effect on January 1, 
2007'' after ``without regard to section 3(m) of such 
Act''.

(f) Reporting Requirements.--
(1) Returns for payments made in the course of a trade or 
business.--
(A) Statement furnished to secretary.--Section 
6041(a) is amended by inserting ``(including a separate 
accounting of any such amounts reasonably designated as 
cash tips and the occupation described in section 
224(d)(1) of the person receiving such tips)'' after 
``such gains, profits, and income''.
(B) Statement furnished to payee.--Section 6041(d) 
is amended by striking ``and'' at the end of paragraph 
(1), by striking the period at the end of paragraph (2) 
and inserting ``, and'', and by inserting after 
paragraph (2) the following new paragraph:
``(3) in the case of compensation to non-employees, the 
portion of payments that have been reasonably designated as cash 
tips and the occupation described in section 224(d)(1) of the 
person receiving such tips.''.
(2) Returns for payments made for services and direct 
sales.--
(A) Statement furnished to secretary.--Section 
6041A(a) is amended by inserting ``(including a separate 
accounting of any such amounts reasonably designated as 
cash tips and the occupation described in section 
224(d)(1) of the person receiving such tips)'' after 
``amount of such payments''.
(B) Statement furnished to payee.--Section 6041A(e) 
is amended by striking ``and'' at the end of paragraph 
(1), by striking the period at the end of paragraph (2) 
and inserting ``, and'', and by inserting after 
paragraph (2) the following new paragraph:
``(3) in the case of subsection (a), the portion of payments 
that have been reasonably designated as cash tips and the

[[Page 139 STAT. 173]]

occupation described in section 224(d)(1) of the person 
receiving such tips.''.
(3) Returns relating to third party settlement 
organizations.--
(A) Statement furnished to secretary.--Section 
6050W(a) is amended by striking ``and'' at the end of 
paragraph (1), by striking the period at the end of 
paragraph (2) and inserting ``and'', and by adding at 
the end the following new paragraph:
``(3) in the case of a third party settlement organization, 
the portion of reportable payment transactions that have been 
reasonably designated by payors as cash tips and the occupation 
described in section 224(d)(1) of the person receiving such 
tips.''.
(B) Statement furnished to payee.--Section 
6050W(f)(2) is amended by inserting ``(including a 
separate accounting of any such amounts that have been 
reasonably designated by payors as cash tips and the 
occupation described in section 224(d)(1) of the person 
receiving such tips)'' after ``reportable payment 
transactions''.
(4) Returns related to wages.--Section 6051(a) is amended by 
striking ``and'' at the end of paragraph (16), by striking the 
period at the end of paragraph (17) and inserting ``, and'', and 
by inserting after paragraph (17) the following new paragraph:
``(18) the total amount of cash tips reported by the 
employee under section 6053(a) and the occupation described in 
section 224(d)(1) such person.''.

(g) Clerical Amendment.--The table of sections for part VII of 
subchapter B of chapter 1 is amended <<NOTE: 26 USC prec. 211.>> by 
redesignating the item relating to section 224 as relating to section 
225 and by inserting after the item relating to section 223 the 
following new item:

``Sec. 224. Qualified tips.''.

(h) Published List of Occupations Traditionally Receiving 
Tips. <<NOTE: Deadline. 26 USC 224 note.>> --Not later than 90 days 
after the date of the enactment of this Act, the Secretary of the 
Treasury (or the Secretary's delegate) shall publish a list of 
occupations which customarily and regularly received tips on or before 
December 31, 2024, for purposes of section 224(d)(1) of the Internal 
Revenue Code of 1986 (as added by subsection (a)).

(i) <<NOTE: Procedures. Effective date. 26 USC 3402 note.>> 
Withholding.--The Secretary of the Treasury (or the Secretary's 
delegate) shall modify the procedures prescribed under section 3402(a) 
of the Internal Revenue Code of 1986 for taxable years beginning after 
December 31, 2025, to take into account the deduction allowed under 
section 224 of such Code (as added by this Act).

(j) <<NOTE: 26 USC 45B note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2024.

(k) <<NOTE: Time periods. 26 USC 6041 note.>> Transition Rule.--In 
the case of any cash tips required to be reported for periods before 
January 1, 2026, persons required to file returns or statements under 
section 6041(a), 6041(d)(3), 6041A(a), 6041A(e)(3), 6050W(a), or 
6050W(f)(2) of the Internal Revenue Code of 1986 (as amended by this 
section) may approximate a separate accounting of amounts designated as 
cash tips by any reasonable method specified by the Secretary.

[[Page 139 STAT. 174]]

SEC. 70202. NO TAX ON OVERTIME.

(a) Deduction Allowed.--Part VII of subchapter B of chapter 1, as 
amended by the preceding provisions of this Act, is amended by 
redesignating section 225 as section 226 and by inserting after section 
224 the following new section:
``SEC. 225. <<NOTE: 26 USC 225.>> QUALIFIED OVERTIME 
COMPENSATION.

``(a) <<NOTE: Statements.>> In General.--There shall be allowed as 
a deduction an amount equal to the qualified overtime compensation 
received during the taxable year and included on statements furnished to 
the individual pursuant to section 6041(d)(4) or 6051(a)(19).

``(b) Limitation.--
``(1) In general.--The amount allowed as a deduction under 
this section for any taxable year shall not exceed $12,500 
($25,000 in the case of a joint return).
``(2) Limitation based on adjusted gross income.--
``(A) In general.--The amount allowable as a 
deduction under subsection (a) (after application of 
paragraph (1)) shall be reduced (but not below zero) by 
$100 for each $1,000 by which the taxpayer's modified 
adjusted gross income exceeds $150,000 ($300,000 in the 
case of a joint return).
``(B) <<NOTE: Definition.>> Modified adjusted gross 
income.--For purposes of this paragraph, 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) Qualified Overtime Compensation.--
``(1) <<NOTE: Definition.>> In general.--For purposes of 
this section, the term `qualified overtime compensation' means 
overtime compensation paid to an individual required under 
section 7 of the Fair Labor Standards Act of 1938 that is in 
excess of the regular rate (as used in such section) at which 
such individual is employed.
``(2) Exclusions.--Such term shall not include any qualified 
tip (as defined in section 224(d)).

``(d) Social Security Number Required.--
``(1) In general.--No deduction shall be allowed under this 
section unless the taxpayer includes on the return of tax for 
the taxable year such individual's social security number.
``(2) Social security number defined.--For purposes of 
paragraph (1), the term `social security number' shall have the 
meaning given such term in section 24(h)(7).

``(e) <<NOTE: Applicability.>> Married Individuals.--If the 
taxpayer is a married individual (within the meaning of section 7703), 
this section shall apply only if the taxpayer and the taxpayer's spouse 
file a joint return for the taxable year.

``(f) <<NOTE: Guidance.>> Regulations.--The Secretary shall issue 
such regulations or other guidance as may be necessary or appropriate to 
carry out the purposes of this section, including regulations or other 
guidance to prevent abuse of the deduction allowed by this section.

``(g) Termination.--No deduction shall be allowed under this section 
for any taxable year beginning after December 31, 2028.''.
(b) Deduction Allowed to Non-itemizers.--Section 63(b), as amended 
by the preceding provisions of this Act, is amended by striking ``and'' 
at the end of paragraph (4), by striking the period

[[Page 139 STAT. 175]]

at the end of paragraph (5) and inserting ``, and'', and by adding at 
the end the following new paragraph:
``(6) the deduction provided in section 225.''.

(c) Reporting.--
(1) Requirement to include overtime compensation on w-2.--
Section 6051(a), as amended by the preceding provision of this 
Act, is amended by striking ``and'' at the end of paragraph 
(17), by striking the period at the end of paragraph (18) and 
inserting ``, and'', and by inserting after paragraph (18) the 
following new paragraph:
``(19) the total amount of qualified overtime compensation 
(as defined in section 225(c)).''.
(2) Payments to persons not treated as employees under tax 
laws.--
(A) Statement furnished to secretary.--Section 
6041(a), as amended by section 70201(e)(1)(A), is 
amended by inserting ``and a separate accounting of any 
amount of qualified overtime compensation (as defined in 
section 225(c))'' after ``occupation of the person 
receiving such tips''.
(B) Statement furnished to payee.--Section 6041(d), 
as amended by section 70201(e)(1)(B), is amended by 
striking ``and'' at the end of paragraph (2), by 
striking the period at the end of paragraph (3) and 
inserting ``, and'', and by inserting after paragraph 
(3) the following new paragraph:
``(4) the portion of payments that are qualified overtime 
compensation (as defined in section 225(c)).''.

(d) Omission of Correct Social Security Number Treated as 
Mathematical or Clerical Error.--Section 6213(g)(2), as amended by the 
preceding provisions of this Act, is amended by striking ``and'' at the 
end of subparagraph (X), by striking the period at the end of 
subparagraph (Y) and inserting ``, and'', and by inserting after 
subparagraph (Y) the following new subparagraph:
``(Z) an omission of a correct social security 
number required under section 225(d) (relating to 
deduction for qualified overtime).''.

(e) Clerical Amendment.--The table of sections for part VII of 
subchapter B of chapter 1, as amended by the preceding provisions of 
this Act, <<NOTE: 26 USC prec. 211.>> is amended by redesignating the 
item relating to section 225 as an item relating to section 226 and by 
inserting after the item relating to section 224 the following new item:

``Sec. 225. Qualified overtime compensation.''.

(f) <<NOTE: Procedures. Effective date. 26 USC 3402 note.>> 
Withholding.--The Secretary of the Treasury (or the Secretary's 
delegate) shall modify the procedures prescribed under section 3402(a) 
of the Internal Revenue Code of 1986 for taxable years beginning after 
December 31, 2025, to take into account the deduction allowed under 
section 225 of such Code (as added by this Act).

(g) <<NOTE: 26 USC 63 note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2024.

(h) <<NOTE: Time periods. 26 USC 6041 note.>> Transition Rule.--In 
the case of qualified overtime compensation required to be reported for 
periods before January 1, 2026, persons required to file returns or 
statements under section 6051(a)(19), 6041(a), or 6041(d)(4) of the 
Internal Revenue Code of 1986 (as amended by this section) may 
approximate a separate

[[Page 139 STAT. 176]]

accounting of amounts designated as qualified overtime compensation by 
any reasonable method specified by the Secretary.
SEC. 70203. NO TAX ON CAR LOAN INTEREST.

(a) In General.--Section 163(h) is amended by redesignating 
paragraph (4) as paragraph (5) and by inserting after paragraph (3) the 
following new paragraph:
``(4) <<NOTE: Definitions.>> Special rules for taxable 
years 2025 through 2028 relating to qualified passenger vehicle 
loan interest.--
``(A) In general.--In the case of taxable years 
beginning after December 31, 2024, and before January 1, 
2029, for purposes of this subsection the term `personal 
interest' shall not include qualified passenger vehicle 
loan interest.
``(B) Qualified passenger vehicle loan interest 
defined.--
``(i) In general.--For purposes of this 
paragraph, the term `qualified passenger vehicle 
loan interest' means any interest which is paid or 
accrued during the taxable year on indebtedness 
incurred by the taxpayer after December 31, 2024, 
for the purchase of, and that is secured by a 
first lien on, an applicable passenger vehicle for 
personal use.
``(ii) Exceptions.--Such term shall not 
include any amount paid or incurred on any of the 
following:
``(I) A loan to finance fleet sales.
``(II) A loan incurred for the 
purchase of a commercial vehicle that is 
not used for personal purposes.
``(III) Any lease financing.
``(IV) A loan to finance the 
purchase of a vehicle with a salvage 
title.
``(V) A loan to finance the purchase 
of a vehicle intended to be used for 
scrap or parts.
``(iii) VIN requirement.--Interest shall not 
be treated as qualified passenger vehicle loan 
interest under this paragraph unless the taxpayer 
includes the vehicle identification number of the 
applicable passenger vehicle described in clause 
(i) on the return of tax for the taxable year.
``(C) Limitations.--
``(i) Dollar limit.--The amount of interest 
taken into account by a taxpayer under 
subparagraph (B) for any taxable year shall not 
exceed $10,000.
``(ii) Limitation based on modified adjusted 
gross income.--
``(I) In general.--The amount which 
is otherwise allowable as a deduction 
under subsection (a) as qualified 
passenger vehicle loan interest 
(determined without regard to this 
clause and after the application of 
clause (i)) shall be reduced (but not 
below zero) by $200 for each $1,000 (or 
portion thereof) by which the modified 
adjusted gross income of the taxpayer 
for the taxable year exceeds $100,000 
($200,000 in the case of a joint 
return).
``(II) Modified adjusted gross 
income.--For purposes of this clause, 
the term `modified adjusted gross 
income' means the adjusted gross income

[[Page 139 STAT. 177]]

of the taxpayer for the taxable year 
increased by any amount excluded from 
gross income under section 911, 931, or 
933.
``(D) Applicable passenger vehicle.--The term 
`applicable passenger vehicle' means any vehicle--
``(i) the original use of which commences with 
the taxpayer,
``(ii) which is manufactured primarily for use 
on public streets, roads, and highways (not 
including a vehicle operated exclusively on a rail 
or rails),
``(iii) which has at least 2 wheels,
``(iv) which is a car, minivan, van, sport 
utility vehicle, pickup truck, or motorcycle,
``(v) which is treated as a motor vehicle for 
purposes of title II of the Clean Air Act, and
``(vi) which has a gross vehicle weight rating 
of less than 14,000 pounds.
Such term shall not include any vehicle the final 
assembly of which did not occur within the United 
States.
``(E) Other definitions and special rules.--For 
purposes of this paragraph--
``(i) Final assembly.--For purposes of 
subparagraph (D), the term `final assembly' means 
the process by which a manufacturer produces a 
vehicle at, or through the use of, a plant, 
factory, or other place from which the vehicle is 
delivered to a dealer with all component parts 
necessary for the mechanical operation of the 
vehicle included with the vehicle, whether or not 
the component parts are permanently installed in 
or on the vehicle.
``(ii) Treatment of refinancing.--Indebtedness 
described in subparagraph (B) shall include 
indebtedness that results from refinancing any 
indebtedness described in such subparagraph, and 
that is secured by a first lien on the applicable 
passenger vehicle with respect to which the 
refinanced indebtedness was incurred, but only to 
the extent the amount of such resulting 
indebtedness does not exceed the amount of such 
refinanced indebtedness.
``(iii) Related parties.--Indebtedness 
described in subparagraph (B) shall not include 
any indebtedness owed to a person who is related 
(within the meaning of section 267(b) or 
707(b)(1)) to the taxpayer.''.

(b) Deduction Allowed to Non-itemizers.--Section 63(b), as amended 
by the preceding provisions of this Act, is amended by striking ``and'' 
at the end of paragraph (5), by striking the period at the end of 
paragraph (6) and inserting ``and'', and by adding at the end the 
following new paragraph:
``(7) so much of the deduction allowed by section 163(a) as 
is attributable to the exception under section 163(h)(4)(A).''.

(c) Reporting.--
(1) In general.--Subpart B of part III of subchapter A of 
chapter 61 is amended by adding at the end the following new 
section:

[[Page 139 STAT. 178]]

``SEC. 6050AA. <<NOTE: 26 USC 6050AA.>> RETURNS RELATING TO 
APPLICABLE PASSENGER VEHICLE LOAN 
INTEREST RECEIVED IN TRADE OR 
BUSINESS FROM INDIVIDUALS.

``(a) In General.--Any person--
``(1) who is engaged in a trade or business, and
``(2) who, in the course of such trade or business, receives 
from any individual interest aggregating $600 or more for any 
calendar year on a specified passenger vehicle loan,

shall make the return described in subsection (b) with respect to each 
individual from whom such interest was received at such time as the 
Secretary may provide.
``(b) Form and Manner of Returns.--A return is described in this 
subsection if such return--
``(1) is in such form as the Secretary may prescribe, and
``(2) contains--
``(A) the name and address of the individual from 
whom the interest described in subsection (a)(2) was 
received,
``(B) the amount of such interest received for the 
calendar year,
``(C) the amount of outstanding principal on the 
specified passenger vehicle loan as of the beginning of 
such calendar year,
``(D) the date of the origination of such loan,
``(E) the year, make, model, and vehicle 
identification number of the applicable passenger 
vehicle which secures such loan (or such other 
description of such vehicle as the Secretary may 
prescribe), and
``(F) such other information as the Secretary may 
prescribe.

``(c) Statements to Be Furnished to Individuals With Respect to Whom 
Information Is Required.--Every person required to make a return under 
subsection (a) shall furnish to each individual whose name is required 
to be set forth in such return a written statement showing--
``(1) the name, address, and phone number of the information 
contact of the person required to make such return, and
``(2) the information described in subparagraphs (B), (C), 
(D), and (E) of subsection (b)(2) with respect to such 
individual (and such information as is described in subsection 
(b)(2)(F) with respect to such individual as the Secretary may 
provide for purposes of this subsection).

The <<NOTE: Deadline.>> written statement required under the preceding 
sentence shall be furnished on or before January 31 of the year 
following the calendar year for which the return under subsection (a) 
was required to be made.

``(d) Definitions.--For purposes of this section--
``(1) In general.--Terms used in this section which are also 
used in paragraph (4) of section 163(h) shall have the same 
meaning as when used in such paragraph.
``(2) Specified passenger vehicle loan.--The term `specified 
passenger vehicle loan' means the indebtedness described in 
section 163(h)(4)(B) with respect to any applicable passenger 
vehicle.

``(e) <<NOTE: Guidance.>> Regulations.--The Secretary shall issue 
such regulations or other guidance as may be necessary or appropriate to 
carry out the purposes of this section, including regulations or other

[[Page 139 STAT. 179]]

guidance to prevent the duplicate reporting of information under this 
section.

``(f) Applicability.--No return shall be required under this section 
for any period to which section 163(h)(4) does not apply.''.
(2) Penalties.--Section 6724(d) is amended--
(A) in paragraph (1)(B), by striking ``or'' at the 
end of clause (xxvii), by striking ``and'' at the end of 
clause (xxviii) and inserting ``or'', and by adding at 
the end the following new clause:
``(xxix) section 6050AA(a) (relating to 
returns relating to applicable passenger vehicle 
loan interest received in trade or business from 
individuals),'', and
(B) in paragraph (2), by striking ``or'' at the end 
of subparagraph (KK), by striking the period at the end 
of subparagraph (LL) and inserting ``, or'', and by 
inserting after subparagraph (LL) the following new 
subparagraph:
``(MM) section 6050AA(c) (relating to statements 
relating to applicable passenger vehicle loan interest 
received in trade or business from individuals).''.

(d) Conforming Amendments.--
(1) Section 56(e)(1)(B) is amended by striking ``section 
163(h)(4)'' and inserting ``section 163(h)(5)''.
(2) The table of sections for subpart B of part III of 
subchapter A of chapter 61 <<NOTE: 26 USC prec. 6041.>> is 
amended by adding at the end the following new item:

``Sec. 6050AA. Returns relating to applicable passenger vehicle loan 
interest received in trade or business from individuals.''.

(e) <<NOTE: 26 USC 56 note.>> Effective Date.--The amendments made 
by this section shall apply to indebtedness incurred after December 31, 
2024.
SEC. 70204. TRUMP ACCOUNTS AND CONTRIBUTION PILOT PROGRAM.

(a) Trump Accounts.--
(1) In general.--Subchapter F of chapter 1 is amended by 
adding at the end the following new part:

``PART IX-- <<NOTE: 26 USC prec. 530A.>> TRUMP ACCOUNTS

``Sec. 530A. Trump accounts.

``SEC. 530A. <<NOTE: Definitions. 26 USC 530A.>> TRUMP ACCOUNTS.

``(a) General Rule.--Except as provided in this section or under 
regulations or guidance established by the Secretary, a Trump account 
shall be treated for purposes of this title in the same manner as an 
individual retirement account under section 408(a).
``(b) Trump Account.--For purposes of this section--
``(1) In general.--The term `Trump account' means an 
individual retirement account (as defined in section 408(a)) 
which is not designated as a Roth IRA and which meets the 
following requirements:
``(A) The account--
``(i) is created or organized by the Secretary 
for the exclusive benefit of an eligible 
individual or such eligible individual's 
beneficiaries, or
``(ii) is--
``(I) created or organized in the 
United States for the exclusive benefit 
of an individual who has

[[Page 139 STAT. 180]]

not attained the age of 18 before the 
end of the calendar year, or such 
individual's beneficiaries, and
``(II) funded by a qualified 
rollover contribution.
``(B) The account is designated (in such manner as 
the Secretary shall prescribe) at the time of the 
establishment of the account as a Trump account.
``(C) The written governing instrument creating the 
account meets the following requirements:
``(i) No contribution will be accepted--
``(I) before the date that is 12 
months after the date of the enactment 
of this section, or
``(II) in the case of a contribution 
made in any calendar year before the 
calendar year in which the account 
beneficiary attains age 18, if such 
contribution would result in aggregate 
contributions (other than exempt 
contributions) for such calendar year in 
excess of the contribution limit 
specified in subsection (c)(2)(A).
``(ii) Except as provided in subsection (d), 
no distribution will be allowed before the first 
day of the calendar year in which the account 
beneficiary attains age 18.
``(iii) No part of the account funds will be 
invested in any asset other than an eligible 
investment during any period before the first day 
of the calendar year in which the account 
beneficiary attains age 18.
``(2) Eligible individual.--The term `eligible individual' 
means any individual--
``(A) who has not attained the age of 18 before the 
close of the calendar year in which the election under 
subparagraph (C) is made,
``(B) for whom a social security number (within the 
meaning of section 24(h)(7)) has been issued before the 
date on which an election under subsection (C) is made, 
and
``(C) for whom--
``(i) an election is made under this 
subparagraph by the Secretary if the Secretary 
determines (based on information available to the 
Secretary from tax returns or otherwise) that such 
individual meets the requirements of subparagraphs 
(A) and (B) and no prior election has been made 
for such individual under clause (ii), or
``(ii) an election is made under this 
subparagraph by a person other than the Secretary 
(at such time and in such manner as the Secretary 
may prescribe) for the establishment of a Trump 
account if no prior election has been made for 
such individual under clause (i).
``(3) Eligible investment.--
``(A) In general.--The term `eligible investment' 
means any mutual fund or exchange traded fund which--
``(i) tracks the returns of a qualified index,
``(ii) does not use leverage,

[[Page 139 STAT. 181]]

``(iii) does not have annual fees and expenses 
of more than 0.1 percent of the balance of the 
investment in the fund, and
``(iv) meets such other criteria as the 
Secretary determines appropriate for purposes of 
this section.
``(B) Qualified index.--The term `qualified index' 
means--
``(i) the Standard and Poor's 500 stock market 
index, or
``(ii) any other index--
``(I) which is comprised of equity 
investments in primarily United States 
companies, and
``(II) for which regulated futures 
contracts (as defined in section 
1256(g)(1)) are traded on a qualified 
board or exchange (as defined in section 
1256(g)(7)).
Such term shall not include any industry or 
sector-specific index, but may include an index 
based on market capitalization.
``(4) Account beneficiary.--The term `account beneficiary' 
means the individual on whose behalf the Trump account was 
established.

``(c) Treatment of Contributions.--
``(1) No deduction allowed.--No deduction shall be allowed 
under section 219 for any contribution which is made before the 
first day of the calendar year in which the account beneficiary 
attains age 18.
``(2) Contribution limit.--In the case of any contribution 
made before the calendar year in which the account beneficiary 
attains age 18--
``(A) In general.--The aggregate amount of 
contributions (other than exempt contributions) for such 
calendar year shall not exceed $5,000.
``(B) Exempt contribution.--For purposes of this 
paragraph, the term `exempt contribution' means--
``(i) a qualified rollover contribution,
``(ii) any qualified general contribution, or
``(iii) any contribution provided under 
section 6434.
``(C) Cost-of-living adjustment.--
``(i) In general.--In the case of any taxable 
year after 2027, the $5,000 amount under 
subparagraph (A) 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 2026' for `calendar year 
2016' in subparagraph (A)(ii) thereof.
``(ii) Rounding.--If any increase under this 
subparagraph is not a multiple of $100, such 
amount shall be rounded to the next lowest 
multiple of $100.
``(3) Timing of contributions.--Section 219(f)(3) shall not 
apply to any contribution made to a Trump account for any 
taxable year ending before the calendar year in which the 
account beneficiary attains age 18.

``(d) Distributions.--

[[Page 139 STAT. 182]]

``(1) In general.--Except as otherwise provided in this 
subsection, no distribution shall be allowed before the first 
day of the calendar year in which the account beneficiary 
attains age 18.
``(2) Tax treatment of allowable distributions.--For 
purposes of applying section 72 to any amount distributed from a 
Trump account, the investment in the contract shall not 
include--
``(A) any qualified general contribution,
``(B) any contribution provided under section 6434, 
and
``(C) the amount of any contribution which is 
excluded from gross income under section 128.
``(3) Qualified rollover contributions.--Paragraph (1) shall 
not apply to any distribution which is a qualified rollover 
contribution and the amount of such distribution shall not be 
included in the gross income of the beneficiary.
``(4) Qualified able rollover contributions.--
``(A) In general.--Paragraph (1) shall not apply to 
any distribution which is a qualified ABLE rollover 
contribution and the amount of such distribution shall 
not be included in the gross income of the beneficiary.
``(B) Qualified able rollover contribution.--For 
purposes of this section, the term `qualified ABLE 
rollover contribution' means an amount which is paid 
during the calendar year in which the account 
beneficiary attains age 17 in a direct trustee-to-
trustee transfer from a Trump account maintained for the 
benefit of the account beneficiary to an ABLE account 
(as defined in section 529A(e)(6)) for the benefit of 
the such account beneficiary, but only if the amount of 
such payment is equal to the entire balance of the Trump 
account from which the payment is made.
``(5) Distributions of excess contributions.--In the case of 
any contribution which is made before the calendar year in which 
the account beneficiary attains age 18 and which is in excess of 
the limitation in effect under subsection (c)(2)(A) for the 
calendar year--
``(A) paragraph (1) shall not apply to the 
distribution of such excess,
``(B) the amount of such distribution shall not be 
included in gross income of the account beneficiary, and
``(C) the tax imposed by this chapter on the 
distributee for the taxable year in which the 
distribution is made shall be increased by 100 percent 
of the amount of net income attributable to such excess 
(determined without regard to subparagraph (B)).
``(6) Treatment of death of account beneficiary.--If, by 
reason of the death of the account beneficiary before the first 
day of the calendar year in which the account beneficiary 
attains age 18, any person acquires the account beneficiary's 
interest in the Trump account--
``(A) paragraph (1) shall not apply,
``(B) such account shall cease to be a Trump account 
as of the date of death, and
``(C) an amount equal to the fair market value of 
the assets (reduced by the investment in the contract) 
in such account on such date shall--

[[Page 139 STAT. 183]]

``(i) if such person is not the estate of such 
beneficiary, be includible in such person's gross 
income for the taxable year which includes such 
date, or
``(ii) if such person is the estate of such 
beneficiary, be includible in such beneficiary's 
gross income for the last taxable year of such 
beneficiary.

``(e) Qualified Rollover Contribution.--For purposes of this 
section, the term `qualified rollover contribution' means an amount 
which is paid in a direct trustee-to-trustee transfer from a Trump 
account maintained for the benefit of the account beneficiary to a Trump 
account maintained for such beneficiary, but only if the amount of such 
payment is equal to the entire balance of the Trump account from which 
the payment is made.
``(f) Qualified General Contribution.--For purposes of this 
section--
``(1) In general.--The term `qualified general contribution' 
means any contribution which--
``(A) is made by the Secretary pursuant to a general 
funding contribution,
``(B) is made to the Trump account of an account 
beneficiary in the qualified class of account 
beneficiaries specified in the general funding 
contribution, and
``(C) is in an amount which is equal to the ratio 
of--
``(i) the amount of such general funding 
contribution, to
``(ii) the number of account beneficiaries in 
such qualified class.
``(2) General funding contribution.--The term `general 
funding contribution' means a contribution which--
``(A) is made by--
``(i) an entity described in section 170(c)(1) 
(other than a possession of the United States or a 
political subdivision thereof) or an Indian tribal 
government, or
``(ii) an organization described in section 
501(c)(3) and exempt from tax under section 
501(a), and
``(B) which specifies a qualified class of account 
beneficiaries to whom such contribution is to be 
distributed.
``(3) Qualified class.--
``(A) In general.--The term `qualified class' means 
any of the following:
``(i) All account beneficiaries who have not 
attained the age of 18 before the close of the 
calendar year in which the contribution is made.
``(ii) All account beneficiaries who have not 
attained the age of 18 before the close of the 
calendar year in which the contribution is made 
and who reside in one or more States or other 
qualified geographic areas specified by the terms 
of the general funding contribution.
``(iii) All account beneficiaries who have not 
attained the age of 18 before the close of the 
calendar year in which the contribution is made 
and who were born in one or more calendar years 
specified by the terms of the general funding 
contribution.
``(B) Qualified geographic area.--The term 
`qualified geographic area' means any geographic area in 
which not

[[Page 139 STAT. 184]]

less than 5,000 account beneficiaries reside and which 
is designated by the Secretary as a qualified geographic 
area under this subparagraph.

``(g) Trustee Selection.--In the case of any Trump account created 
or organized by the Secretary, the Secretary shall take into account the 
following criteria in selecting the trustee:
``(1) The history of reliability and regulatory compliance 
of the trustee.
``(2) The customer service experience of the trustee.
``(3) The costs imposed by the trustee on the account or the 
account beneficiary.

``(h) Other Special Rules and Coordination With Individual 
Retirement Account Rules.--
``(1) In general.--The rules of subsections (k) and (p) of 
section 408 shall not apply to a Trump account, and the rules of 
subsections (d) and (i) of section 408 shall not apply to a 
Trump account for any taxable year beginning before the calendar 
year in which the account beneficiary attains age 18.
``(2) Custodial accounts.--In the case of a Trump account, 
section 408(h) shall be applied by substituting `a Trump account 
described in section 530A(b)(1)' for `an individual retirement 
account described in subsection (a)'.
``(3) Contributions.--In the case of any taxable year 
beginning before the first day of the calendar year in which the 
account beneficiary attains age 18, a contribution to a Trump 
account shall not be taken into account in applying any 
contribution limit to any individual retirement plan other than 
a Trump account.
``(4) Distributions.--Section 408(d)(2) shall be applied 
separately with respect to Trump Accounts and other individual 
retirement plans.
``(5) Excess contributions.--For purposes of applying 
section 4973(b) to a Trump account for any taxable year 
beginning before the first day of the calendar year in which the 
account beneficiary attains age 18, the term `excess 
contributions' means the sum of--
``(A) the amount by which the amount contributed to 
the account for the calendar year in which taxable year 
begins exceeds the amount permitted to be contributed to 
the account under subsection (c)(2), and
``(B) the amount determined under this paragraph for 
the preceding taxable year.
For purposes of this paragraph, the excess contributions for a 
taxable year are reduced by the distributions to which 
subsection (d)(5) applies that are made during the taxable year 
or by the date prescribed by law (including extensions of time) 
for filing the account beneficiary's return for the taxable 
year.

``(i) Reports.--
``(1) In general.--The trustee of a Trump account shall make 
such reports regarding such account to the Secretary and to the 
beneficiary of the account at such time and in such manner as 
may be required by the Secretary. Such reports shall include 
information with respect to--
``(A) contributions (including the amount and source 
of any contribution in excess of $25 made from a person

[[Page 139 STAT. 185]]

other than the Secretary, the account beneficiary, or 
the parent or legal guardian of the account 
beneficiary),
``(B) distributions (including distributions which 
are qualified rollover contributions),
``(C) the fair market value of the account,
``(D) the investment in the contract with respect to 
such account, and
``(E) such other matters as the Secretary may 
require.
``(2) Qualified rollover contributions.--Not later than 30 
days after the date of any qualified rollover contribution, the 
trustee of the Trump account to which the contribution was made 
shall make a report to the Secretary. Such report shall 
include--
``(A) the name, address, and social security number 
of the account beneficiary,
``(B) the name and address of such trustee,
``(C) the account number,
``(D) the routing number of the trustee, and
``(E) such other information as the Secretary may 
require.
``(3) Period of reporting.--This subsection shall not apply 
to any period after the calendar year in which the beneficiary 
attains age 17.''.
(2) Qualified able rollover contributions exempt from able 
contribution limitation.--
(A) In general.--Section 529A(b)(2)(B) is amended by 
inserting ``or received in a qualified ABLE rollover 
contribution described in section 530A(d)(4)(B)'' after 
``except as provided in the case of contributions under 
subsection (c)(1)(C)''.
(B) Prohibition on excess contributions.--The second 
sentence of section 529A(b)(6) is amended by inserting 
``but do not include any contributions received in a 
qualified ABLE rollover contribution described in 
section 530A(d)(4)(B)'' before the period at the end.
(C) Conforming amendment.--Section 4973(h)(1) is 
amended by inserting ``or contributions received in a 
qualified ABLE rollover contribution described in 
section 530A(d)(4)(B)'' after ``other than contributions 
under section 529A(c)(1)(C)''.
(3) Failure to provide reports on trump accounts.--Section 
6693(a)(2) is amended by striking ``and'' at the end of 
subparagraph (E), by striking the period at the end of 
subparagraph (F) and inserting ``, and'', and by inserting after 
subparagraph (F) the following new subparagraph:
``(G) section 530A(i) (relating to Trump 
accounts).''.
(4) Clerical amendment.--
(A) The table of parts for subchapter F of chapter 1 
is amended <<NOTE: 26 USC prec. 501.>> by adding at the 
end the following new item:

``PART IX--Trump Accounts''.

(b) Employer Contributions.--
(1) In general.--Part III of subchapter B of chapter 1 is 
amended by inserting after section 127 the following new 
section:

[[Page 139 STAT. 186]]

``SEC. 128. <<NOTE: 26 USC 128.>> EMPLOYER CONTRIBUTIONS TO TRUMP 
ACCOUNTS.

``(a) In General.--Gross income of an employee does not include 
amounts paid by the employer as a contribution to the Trump account of 
such employee or of any dependent of such employee if the amounts are 
paid or incurred pursuant to a program which is described in subsection 
(c).
``(b) Limitation.--
``(1) In general.--The amount which may be excluded under 
subsection (a) with respect to any employee shall not exceed 
$2,500.
``(2) Inflation adjustment.--
``(A) <<NOTE: Effective date.>> In general.--In the 
case of any taxable year beginning after 2027, the 
$2,500 amount in paragraph (1) 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 by 
substituting `calendar year 2026' for `calendar 
year 2016' in subparagraph (A)(ii) thereof.
``(B) Rounding.--If any increase determined under 
subparagraph (A) is not a multiple of $100, such 
increase shall be rounded to the next lowest multiple of 
$100.

``(c) Trump Account Contribution Program.--For purposes of this 
section, a Trump account contribution program is a separate written plan 
of an employer for the exclusive benefit of his employees to provide 
contributions to the Trump accounts of such employees or dependents of 
such employees which meets requirements similar to the requirements of 
paragraphs (2), (3), (6), (7), and (8) of section 129(d).''.
(2) Clerical amendment.--The table of sections for part III 
of subchapter B of chapter 1 <<NOTE: 26 USC prec. 101.>> is 
amended by inserting after the item relating to section 127 the 
following new item:

``Sec. 128. Employer contributions to Trump accounts.''.

(c) Certain Contributions Excluded From Gross Income.--
(1) In general.--Part III of subchapter B of chapter 1 is 
amended by inserting before section 140 the following new 
section:
``SEC. 139J. <<NOTE: 26 USC 139J.>> CERTAIN CONTRIBUTIONS TO 
TRUMP ACCOUNTS.

``(a) In General.--Gross income of an account beneficiary shall not 
include any qualified general contribution to a Trump account of the 
account beneficiary.
``(b) Definitions.--Any term used in this section which is used in 
section 530A shall have the meaning given such term under section 
530A.''.
(2) Clerical amendment.--The table of sections for part III 
of subchapter B is amended <<NOTE: 26 USC prec. 101.>> by 
inserting before the item relating to section 140 the following 
new item:

``Sec. 139J. Certain contributions to Trump accounts.''.

(d) Trump Accounts Contribution Pilot Program.--
(1) In general.--Subchapter B of chapter 65 is amended by 
adding at the end the following new section:

[[Page 139 STAT. 187]]

``SEC. 6434. <<NOTE: 26 USC 6434.>> TRUMP ACCOUNTS CONTRIBUTION 
PILOT PROGRAM.

``(a) In General.--In the case of an individual who makes an 
election under this section with respect to an eligible child of the 
individual, such eligible child shall be treated as making a payment 
against the tax imposed by subtitle A (for the taxable year for which 
the election was made) in an amount equal to $1,000.
``(b) Refund of Payment.--The amount treated as a payment under 
subsection (a) shall be paid by the Secretary to the Trump account with 
respect to which such eligible child is the account beneficiary.
``(c) <<NOTE: Definition.>> Eligible Child.--For purposes of this 
section, the term `eligible child' means a qualifying child (as defined 
in section 152(c))--
``(1) who is born after December 31, 2024, and before 
January 1, 2029,
``(2) with respect to whom no prior election has been made 
under this section by such individual or any other individual, 
and
``(3) who is a United States citizen.

``(d) Election.--An election under this section shall be made at 
such time and in such manner as the Secretary shall provide.
``(e) Social Security Number Required.--
``(1) In general.--This section shall not apply to any 
taxpayer unless such individual includes with the election made 
under this section the social security number of the eligible 
child with respect to whom the election is made.
``(2) Social security number defined.--For purposes of 
paragraph (1), the term `social security number' shall have the 
meaning given such term in section 24(h)(7), determined by 
substituting `before the date of the election made under section 
6434' for `before the due date of such return' in subparagraph 
(B) thereof.

``(f) Exception From Reduction or Offset.--Any payment made to any 
individual under this section shall not be--
``(1) subject to reduction or offset pursuant to subsection 
(c), (d), (e), or (f) of section 6402 or any similar authority 
permitting offset, or
``(2) reduced or offset by other assessed Federal taxes that 
would otherwise be subject to levy or collection.

``(g) <<NOTE: Effective date.>> Special Rule Regarding Interest.--
The period determined under section 6611(a) with respect to any payment 
under this section shall not begin before January 1, 2028.

``(h) Mirror Code Possessions.--In the case of any possession of the 
United States with a mirror code tax system (as defined in section 
24(k)), this section shall not be treated as part of the income tax laws 
of the United States for purposes of determining the income tax law of 
such possession unless such possession elects to have this section be so 
treated.
``(i) Definitions.--For purposes of this section, the terms `Trump 
account' and `account beneficiary' have the meaning given such terms in 
section 530A(b).''.
(2) Penalty for negligent claim or fraudulent claim.--Part I 
of subchapter A of chapter 68 is amended by adding at the end 
the following new section:

[[Page 139 STAT. 188]]

``SEC. 6659. <<NOTE: 26 USC 6659.>> IMPROPER CLAIM FOR TRUMP 
ACCOUNT CONTRIBUTION PILOT PROGRAM 
CREDIT.

``(a) In General.--In the case of any individual who makes an 
election under section 6434 with respect to an individual who is not an 
eligible child of the taxpayer--
``(1) if such election was made due to negligence or 
disregard of the rules or regulations, there shall be imposed a 
penalty of $500, or
``(2) if such election was made due to fraud, there shall be 
imposed a penalty of $1,000.

``(b) Definitions.--
``(1) Eligible child.--The term `eligible child' has the 
meaning given such term under section 6434.
``(2) Negligence; disregard.--The terms `negligence' and 
`disregard' have the same meaning as when such terms are used in 
section 6662.''.
(3) Omission of correct social security number treated as 
mathematical or clerical error.--Section 6213(g)(2), as amended 
by the preceding provisions of this Act, is amended by striking 
``and'' at the end of subparagraph (Y), by striking the period 
at the end of subparagraph (Z) and inserting ``, and'', and by 
inserting after subparagraph (Z) the following new subparagraph:
``(AA) an omission of a correct social security 
number required under section 6434(e)(1) (relating to 
the Trump accounts contribution pilot program).''.
(4) Conforming amendments.--
(A) The table of sections for subchapter B of 
chapter 65 <<NOTE: 26 USC prec. 6411.>> is amended by 
adding at the end the following new item:

``Sec. 6434. Trump accounts contribution pilot program.''.

(B) The table of sections for part I of subchapter A 
of chapter 68 <<NOTE: 26 USC prec. 6651.>> is amended 
by inserting after the item relating to section 6658 the 
following new item:

``Sec. 6659. Improper claim for Trump account contribution pilot program 
credit.''.

(e) <<NOTE: 26 USC 128 note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2025.

(f) <<NOTE: Expiration date.>> Funding.--In addition to amounts 
otherwise available, there is appropriated to the Department of the 
Treasury, out of any money in the Treasury not otherwise appropriated, 
$410,000,000, to remain available until September 30, 2034, to carry out 
the amendments made by this section.

CHAPTER 3--ESTABLISHING CERTAINTY AND COMPETITIVENESS FOR AMERICAN JOB 
CREATORS

Subchapter A--Permanent U.S. Business Tax Reform and Boosting Domestic 
Investment

SEC. 70301. <<NOTE: Applicability.>> FULL EXPENSING FOR CERTAIN 
BUSINESS PROPERTY.

(a) Made Permanent.--
(1) In general.--Section 168(k)(2)(A) is amended by adding 
``and'' at the end of clause (i), by striking ``, and'' at the 
end of clause (ii) and inserting a period, and by striking 
clause (iii).

[[Page 139 STAT. 189]]

(2) Property with longer production periods.--Section 
168(k)(2)(B) is amended--
(A) in clause (i), by striking subclauses (II) and 
(III) and redesignating subclauses (IV), (V), and (VI), 
as subclauses (II), (III), and (IV), respectively, and
(B) by striking clause (ii) and redesignating 
clauses (iii) and (iv) as clauses (ii) and (iii), 
respectively.
(3) Self-constructed property.--Section 168(k)(2)(E) is 
amended by striking clause (i) and redesignating clauses (ii) 
and (iii) as clauses (i) and (ii), respectively.
(4) Certain plants.--Section 168(k)(5)(A) is amended by 
striking ``planted before January 1, 2027, or is grafted before 
such date to a plant that has already been planted,'' in the 
matter preceding clause (i) and inserting ``planted or 
grafted''.
(5) Conforming amendments.--
(A) Section 168(k)(2)(A)(ii) is amended by striking 
``clause (ii) of subparagraph (E)'' and inserting 
``clause (i) of subparagraph (E)''.
(B) Section 168(k)(2)(C)(i) is amended by striking 
``and subclauses (II) and (III) of subparagraph 
(B)(i)''.
(C) Section 168(k)(2)(C)(ii) is amended by striking 
``subparagraph (B)(iii)'' and inserting ``subparagraph 
(B)(ii)''.
(D) Section 460(c)(6)(B) is amended by striking 
``which'' and all that follows through the period and 
inserting ``which has a recovery period of 7 years or 
less.''.

(b) 100 Percent Expensing.--
(1) In general.--Section 168(k) is amended--
(A) in paragraph (1)(A), by striking ``the 
applicable percentage'' and inserting ``100 percent'', 
and
(B) by striking paragraphs (6) and (8).
(2) Certain plants.--Section 168(k)(5)(A)(i) is amended by 
striking ``the applicable percentage'' and inserting ``100 
percent''.
(3) <<NOTE: Time period.>> Transitional election of reduced 
percentage.--Section 168(k)(10) is amended by striking 
subparagraph (A), by redesignating subparagraph (B) as 
subparagraph (C), and by inserting before subparagraph (C) (as 
so redesignated) the following new subparagraphs:
``(A) In general.--In the case of qualified property 
placed in service by the taxpayer during the first 
taxable year ending after January 19, 2025, if the 
taxpayer elects to have this paragraph apply for such 
taxable year, paragraph (1)(A) shall be applied--
``(i) in the case of property which is not 
described in clause (ii), by substituting `40 
percent' for `100 percent', or
``(ii) in the case of property which is 
described in subparagraph (B) or (C) of paragraph 
(2), by substituting `60 percent' for `100 
percent'.
``(B) Specified plants.--In the case of any 
specified plant planted or grafted by the taxpayer 
during the first taxable year ending after January 19, 
2025, if the taxpayer elects to have this paragraph 
apply for such taxable year, paragraph (5)(A)(i) shall 
be applied by substituting `40 percent' for `100 
percent'.''.

(c) <<NOTE: 26 USC 168 note.>> Effective Date.--

[[Page 139 STAT. 190]]

(1) In general.--Except as otherwise provided in this 
subsection, the amendments made by this section shall apply to 
property acquired after January 19, 2025.
(2) Specified plants.--Except as provided in paragraph (3), 
in the case of any specified plant (as defined in section 
168(k)(5)(B) of the Internal Revenue Code of 1986, as amended by 
this section), the amendments made by this section shall apply 
to such plants which are planted or grafted after January 19, 
2025.
(3) Transitional election of reduced percentage.--The 
amendment made by subsection (b)(3) shall apply to taxable years 
ending after January 19, 2025.
(4) Acquisition date determination.--For purposes of 
paragraph (1), property shall not be treated as acquired after 
the date on which a written binding contract is entered into for 
such acquisition.
SEC. 70302. FULL EXPENSING OF DOMESTIC RESEARCH AND EXPERIMENTAL 
EXPENDITURES.

(a) In General.--Part VI of subchapter B of chapter 1 is amended by 
inserting after section 174 the following new section:
``SEC. 174A. <<NOTE: 26 USC 174A.>> DOMESTIC RESEARCH OR 
EXPERIMENTAL EXPENDITURES.

``(a) Treatment as Expenses.--Notwithstanding section 263, there 
shall be allowed as a deduction any domestic research or experimental 
expenditures which are paid or incurred by the taxpayer during the 
taxable year.
``(b) Domestic Research or Experimental Expenditures.--
For <<NOTE: Definition.>> purposes of this section, the term `domestic 
research or experimental expenditures' means research or experimental 
expenditures paid or incurred by the taxpayer in connection with the 
taxpayer's trade or business other than such expenditures which are 
attributable to foreign research (within the meaning of section 
41(d)(4)(F)).

``(c) Amortization of Certain Domestic Research or Experimental 
Expenditures.--
``(1) In general.--At the election of the taxpayer, made in 
accordance with regulations or other guidance provided by the 
Secretary, in the case of domestic research or experimental 
expenditures which would (but for subsection (a)) be chargeable 
to capital account but not chargeable to property of a character 
which is subject to the allowance under section 167 (relating to 
allowance for depreciation, etc.) or section 611 (relating to 
allowance for depletion), subsection (a) shall not apply and the 
taxpayer shall--
``(A) charge such expenditures to capital account, 
and
``(B) <<NOTE: Time period.>> be allowed an 
amortization deduction of such expenditures ratably over 
such period of not less than 60 months as may be 
selected by the taxpayer (beginning with the month in 
which the taxpayer first realizes benefits from such 
expenditures).
``(2) <<NOTE: Deadline.>> Time for and scope of election.--
The election provided by paragraph (1) may be made for any 
taxable year, but only if made not later than the time 
prescribed by law for filing the return for such taxable year 
(including extensions thereof). <<NOTE: Approval.>> The method 
so elected, and the period selected by the taxpayer, shall be 
adhered to in computing taxable income for the taxable year for 
which the election is made and for

[[Page 139 STAT. 191]]

all subsequent taxable years unless, with the approval of the 
Secretary, a change to a different method (or to a different 
period) is authorized with respect to part or all of such 
expenditures. The election shall not apply to any expenditure 
paid or incurred during any taxable year before the taxable year 
for which the taxpayer makes the election.

``(d) Special Rules.--
``(1) Land and other property.--This section shall not apply 
to any expenditure for the acquisition or improvement of land, 
or for the acquisition or improvement of property to be used in 
connection with the research or experimentation and of a 
character which is subject to the allowance under section 167 
(relating to allowance for depreciation, etc.) or section 611 
(relating to allowance for depletion); but for purposes of this 
section allowances under section 167, and allowances under 
section 611, shall be considered as expenditures.
``(2) Exploration expenditures.--This section shall not 
apply to any expenditure paid or incurred for the purpose of 
ascertaining the existence, location, extent, or quality of any 
deposit of ore or other mineral (including oil and gas).
``(3) Software development.--For purposes of this section, 
any amount paid or incurred in connection with the development 
of any software shall be treated as a research or experimental 
expenditure.''.

(b) Coordination With Certain Other Provisions.--
(1) Foreign research expenses.--Section 174 is amended--
(A) in subsection (a)--
(i) by striking ``a taxpayer's specified 
research or experimental expenditures'' and 
inserting ``a taxpayer's foreign research or 
experimental expenditures'', and
(ii) by striking ``over the 5-year period (15-
year period in the case of any specified research 
or experimental expenditures which are 
attributable to foreign research (within the 
meaning of section 41(d)(4)(F)))'' in paragraph 
(2)(B) and inserting ``over the 15-year period'',
(B) in subsection (b)--
(i) by striking ``specified research'' and 
inserting ``foreign research'',
(ii) by inserting ``and which are attributable 
to foreign research (within the meaning of section 
41(d)(4)(F))'' before the period at the end, and
(iii) by striking ``Specified'' in the heading 
thereof and inserting ``Foreign'', and
(C) in subsection (d)--
(i) by striking ``specified research or 
experimental expenditures'' and inserting 
``foreign research or experimental expenditures'', 
and
(ii) by inserting ``or reduction to amount 
realized'' after ``no deduction''.
(2) Research credit.--
(A) Section 41(d)(1)(A) is amended to read as 
follows:
``(A) with respect to which expenditures are treated 
as domestic research or experimental expenditures under 
section 174A,''.
(B) Section 280C(c)(1) is amended to read as 
follows:

[[Page 139 STAT. 192]]

``(1) <<NOTE: Reduction.>> In general.--The domestic 
research or experimental expenditures (as defined in section 
174A(b)) otherwise taken into account as a deduction or charged 
to capital account under this chapter shall be reduced by the 
amount of the credit allowed under section 41(a).''.
(3) AMT adjustment.--Section 56(b)(2) is amended--
(A) in subparagraph (A)--
(i) by striking ``or 174(a)'' in the matter 
preceding clause (i) and inserting ``, 174(a), or 
174A(a)'', and
(ii) by striking ``research and experimental 
expenditures described in section 174(a)'' in 
clause (ii) thereof and inserting ``foreign 
research or experimental expenditures described in 
section 174(a) and domestic research or 
experimental expenditures in section 174A(a)'', 
and
(B) in subparagraph (C), by inserting ``or 174A(a)'' 
after ``174(a)''.
(4) Optional 10-year writeoff.--Section 59(e)(2)(B) is 
amended by striking ``section 174(a) (relating to research and 
experimental expenditures)'' and inserting ``section 174A(a) 
(relating to domestic research or experimental expenditures)''.
(5) Qualified small issue bonds.--Section 144(a)(4)(C)(iv) 
is amended by striking ``174(a)'' and inserting ``174A(a)''.
(6) Start-up expenditures.--Section 195(c)(1) is amended by 
striking ``or 174'' in the last sentence and inserting ``174, or 
174A''.
(7) Capital expenditures.--
(A) Section 263(a)(1)(B) is amended by inserting 
``or 174A'' after ``174''.
(B) Section 263A(c)(2) is amended by inserting ``or 
174A'' after ``174''.
(8) Active business computer software royalties.--Section 
543(d)(4)(A)(i) is amended by inserting ``174A,'' after 
``174,''.
(9) Source rules.--Section 864(g)(2) is amended--
(A) by striking ``research and experimental 
expenditures within the meaning of section 174'' in the 
first sentence and inserting ``foreign research or 
experimental expenditures within the meaning of section 
174 or domestic research or experimental expenditures 
within the meaning of section 174A'', and
(B) in the last sentence--
(i) by striking ``treated as deferred expenses 
under subsection (b) of section 174'' and 
inserting ``allowed as an amortization deduction 
under section 174(a) or section 174A(c),'', and
(ii) by striking ``such subsection'' and 
inserting ``such section (as the case may be)''.
(10) Basis adjustment.--Section 1016(a)(14) is amended by 
striking ``deductions as deferred expenses under section 
174(b)(1) (relating to research and experimental expenditures)'' 
and inserting ``deductions under section 174 or 174A(c)''.
(11) Small business stock.--Section 1202(e)(2)(B) is amended 
by striking ``which may be treated as research and experimental 
expenditures under section 174'' and inserting ``which are 
treated as foreign research or experimental expenditures under 
section 174 or domestic research or experimental expenditures 
under section 174A''.

[[Page 139 STAT. 193]]

(c) <<NOTE: Applicability. Effective dates. 26 USC 174A note.>> 
Change in Method of Accounting.--
(1) In general.--The amendments made by subsection (a) shall 
be treated as a change in method of accounting for purposes of 
section 481 of the Internal Revenue Code of 1986 and--
(A) such change shall be treated as initiated by the 
taxpayer,
(B) such change shall be treated as made with the 
consent of the Secretary, and
(C) such change shall be applied only on a cut-off 
basis for any domestic research or experimental 
expenditures (as defined in section 174A(b) of such Code 
(as added by this section) and determined by applying 
the rules of section 174A(d) of such Code) paid or 
incurred in taxable years beginning after December 31, 
2024, and no adjustments under section 481(a) shall be 
made.
(2) Special rules.--In the case of a taxable year which 
begins after December 31, 2024, and ends before the date of the 
enactment of this Act--
(A) paragraph (1)(C) shall not apply, and
(B) the change in method of accounting under 
paragraph (1) shall be applied on a modified cut-off 
basis, taking into account for purposes of section 
481(a) of such Code only the domestic research or 
experimental expenditures (as defined in section 174A(b) 
of such Code (as added by this section) and determined 
by applying the rules of section 174A(d) of such Code) 
paid or incurred in such taxable year but not allowed as 
a deduction in such taxable year.

(d) Clerical Amendment.--The table of sections for part VI of 
subchapter B of chapter 1 is amended <<NOTE: 26 USC prec. 161.>> by 
inserting after the item relating to section 174 the following new item:

``Sec. 174A. Domestic research or experimental expenditures.''.

(e) <<NOTE: Applicability. 26 USC 174A note.>> Effective Date.--
(1) In general.--Except as otherwise provided in this 
subsection or subsection (f)(1), the amendments made by this 
section shall apply to amounts paid or incurred in taxable years 
beginning after December 31, 2024.
(2) Treatment of foreign research or experimental 
expenditures upon disposition.--
(A) In general.--The amendment by subsection 
(b)(1)(C)(ii) shall apply to property disposed, retired, 
or abandoned after May 12, 2025.
(B) No inference.--The amendment made by subsection 
(b)(1)(C)(ii) shall not be construed to create any 
inference with respect to the proper application of 
section 174(d) of the Internal Revenue Code of 1986 with 
respect to taxable years beginning before May 13, 2025.
(3) Coordination with research credit.--The amendment made 
by subsection (b)(2)(B) shall apply to taxable years beginning 
after December 31, 2024.
(4) No inference with respect to coordination with research 
credit for prior periods.--The amendment made by subsection 
(b)(2)(B) shall not be construed to create any inference with 
respect to the proper application of section 280C(c) of the 
Internal Revenue Code of 1986 with respect to taxable years 
beginning before January 1, 2025.

[[Page 139 STAT. 194]]

(f) Transition Rules.--
(1) Election for retroactive application by certain small 
businesses.--
(A) In general.--At the election of an eligible 
taxpayer, paragraphs (1) and (3) of subsection (e) shall 
each be applied by substituting ``December 31, 2021'' 
for ``December 31, 2024''. <<NOTE: Deadline.>> An 
election made under this subparagraph shall be made in 
such manner as the Secretary may provide and not later 
than the date that is 1 year after the date of the 
enactment of this Act. The taxpayer shall file an 
amended return for each taxable year affected by such 
election.
(B) <<NOTE: Definition.>> Eligible taxpayer.--For 
purposes of this paragraph, the term ``eligible 
taxpayer'' means any taxpayer (other than a tax shelter 
prohibited from using the cash receipts and 
disbursements method of accounting under section 
448(a)(3)) which meets the gross receipts test of 
section 448(c) for the first taxable year beginning 
after December 31, 2024.
(C) Election treated as change in method of 
accounting.--In the case of any taxpayer which elects 
the application of subparagraph (A)--
(i) such election may be treated as a change 
in method of accounting for purposes of section 
481 of such Code for the taxpayer's first taxable 
year affected by such election,
(ii) such change shall be treated as initiated 
by the taxpayer for such taxable year,
(iii) such change shall be treated as made 
with the consent of the Secretary, and
(iv) subsection (c) shall not apply to such 
taxpayer.
(D) Election regarding coordination with research 
credit. <<NOTE: Effective date. Time period.>> --An 
election under section 280C(c)(2) of the Internal 
Revenue Code of 1986 (or revocation of such election) 
for any taxable year beginning after December 31, 2021, 
by an eligible taxpayer making an election under 
subparagraph (A) shall not fail to be treated as timely 
made (or as made on the return) if made during the 1-
year period beginning on the date of the enactment of 
this Act on an amended return for such taxable year.
(2) Election to deduct certain unamortized amounts paid or 
incurred in taxable years beginning before january 1, 2025.--
(A) <<NOTE: Time periods.>> In general.--In the 
case of any domestic research or experimental 
expenditures (as defined in section 174A, as added by 
subsection (a)) which are paid or incurred in taxable 
years beginning after December 31, 2021, and before 
January 1, 2025, and which was charged to capital 
account, a taxpayer may elect--
(i) to deduct any remaining unamortized amount 
with respect to such expenditures in the first 
taxable year beginning after December 31, 2024, or
(ii) to deduct such remaining unamortized 
amount with respect to such expenditures ratably 
over the 2-taxable year period beginning with the 
first taxable year beginning after December 31, 
2024.

[[Page 139 STAT. 195]]

(B) Change in method of accounting.--In the case of 
a taxpayer who makes an election under this paragraph--
(i) such taxpayer shall be treated as 
initiating a change in method of accounting for 
purposes of section 481 of the Internal Revenue 
Code of 1986 with respect to the expenditures to 
which the election applies,
(ii) such change shall be treated as made with 
the consent of the Secretary, and
(iii) <<NOTE: Applicability.>> such change 
shall be applied only on a cut-off basis for such 
expenditures and no adjustments under section 
481(a) shall be made.
(C) <<NOTE: Publication. Guidance. Time periods.>> 
Regulations.--The Secretary of the Treasury (or the 
Secretary's delegate) shall publish such guidance or 
regulations as may be necessary to carry out the 
purposes of this paragraph, including regulations or 
guidance allowing for the deduction allowed under 
subparagraph (A) in the case of taxpayers with taxable 
years beginning after December 31, 2024, and ending 
before the date of the enactment of this Act.
SEC. 70303. MODIFICATION OF LIMITATION ON BUSINESS INTEREST.

(a) In General.--Section 163(j)(8)(A)(v) is amended by striking ``in 
the case of taxable years beginning before January 1, 2022,''.
(b) Floor Plan Financing Applicable to Certain Trailers and 
Campers.--Section 163(j)(9)(C) is amended by adding at the end the 
following new flush sentence:
``Such term shall also include any trailer or camper 
which is designed to provide temporary living quarters 
for recreational, camping, or seasonal use and is 
designed to be towed by, or affixed to, a motor 
vehicle.''.

(c) <<NOTE: 26 USC 163 note.>> Effective Date and Special Rule.--
(1) In general.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2024.
(2) <<NOTE: Time period.>> Special rule for short taxable 
years.--The Secretary of the Treasury (or the Secretary's 
delegate) may prescribe such rules as are necessary or 
appropriate to provide for the application of the amendments 
made by this section in the case of any taxable year of less 
than 12 months that begins after December 31, 2024, and ends 
before the date of the enactment of this Act.
SEC. 70304. EXTENSION AND ENHANCEMENT OF PAID FAMILY AND MEDICAL 
LEAVE CREDIT.

(a) In General.--Section 45S is amended--
(1) in subsection (a)--
(A) by striking paragraph (1) and inserting the 
following:
``(1) In general.--For purposes of section 38, in the case 
of an eligible employer, the paid family and medical leave 
credit is an amount equal to either of the following (as elected 
by such employer):
``(A) The applicable percentage of the amount of 
wages paid to qualifying employees with respect to any 
period in which such employees are on family and medical 
leave.
``(B) If such employer has an insurance policy with 
regards to the provision of paid family and medical 
leave

[[Page 139 STAT. 196]]

which is in force during the taxable year, the 
applicable percentage of the total amount of premiums 
paid or incurred by such employer during such taxable 
year with respect to such insurance policy.'', and
(B) by adding at the end the following:
``(3) Rate of payment determined without regard to whether 
leave is taken.--For purposes of determining the applicable 
percentage with respect to paragraph (1)(B), the rate of payment 
under the insurance policy shall be determined without regard to 
whether any qualifying employees were on family and medical 
leave during the taxable year.'',
(2) in subsection (b)(1), by striking ``credit allowed'' and 
inserting ``wages taken into account'',
(3) in subsection (c), by striking paragraphs (3) and (4) 
and inserting the following:
``(3) Aggregation rule.--
``(A) In general.--Except as provided in 
subparagraph (B), all persons which are treated as a 
single employer under subsections (b) and (c) of section 
414 shall be treated as a single employer.
``(B) Exception.--
``(i) In general.--Subparagraph (A) shall not 
apply to any person who establishes to the 
satisfaction of the Secretary that such person has 
a substantial and legitimate business reason for 
failing to provide a written policy described in 
paragraph (1) or (2).
``(ii) Substantial and legitimate business 
reason. <<NOTE: Definition.>> --For purposes of 
clause (i), the term `substantial and legitimate 
business reason' shall not include the operation 
of a separate line of business, the rate of wages 
or category of jobs for employees (or any similar 
basis), or the application of State or local laws 
relating to family and medical leave, but may 
include the grouping of employees of a common law 
employer.
``(4) Treatment of benefits mandated or paid for by state or 
local governments.--For purposes of this section, any leave 
which is paid by a State or local government or required by 
State or local law--
``(A) except as provided in subparagraph (B), shall 
be taken into account in determining the amount of paid 
family and medical leave provided by the employer, and
``(B) shall not be taken into account in determining 
the amount of the paid family and medical leave credit 
under subsection (a).'',
(4) in subsection (d)--
(A) in paragraph (1), by inserting ``(or, at the 
election of the employer, for not less than 6 months)'' 
after ``1 year or more'',
(B) in paragraph (2)--
(i) by inserting ``, as determined on an 
annualized basis (pro-rata for part-time 
employees),'' after ``compensation'', and
(ii) by striking the period at the end and 
inserting ``, and'', and
(C) by adding at the end the following:
``(3) is customarily employed for not less than 20 hours per 
week.'', and

[[Page 139 STAT. 197]]

(5) by striking subsection (i).

(b) No Double Benefit.--Section 280C(a) is amended--
(1) by striking ``45S(a)'' and inserting ``45S(a)(1)(A)'', 
and
(2) by inserting after the first sentence the following: 
``No deduction shall be allowed for that portion of the premiums 
paid or incurred for the taxable year which is equal to that 
portion of the paid family and medical leave credit which is 
determined for the taxable year under section 45S(a)(1)(B).''.

(c) <<NOTE: 26 USC 45S note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2025.
SEC. 70305. EXCEPTIONS FROM LIMITATIONS ON DEDUCTION FOR BUSINESS 
MEALS.

(a) Exception to Denial of Deduction for Business Meals.--Section 
274(o), as added by section 13304 of Public Law 115-97, is amended by 
striking ``No deduction'' and inserting ``Except in the case of an 
expense described in subsection (e)(8) or (n)(2)(C), no deduction''.
(b) Meals Provided on Certain Fishing Boats and at Certain Fish 
Processing Facilities Not Subject to 50 Percent Limitation.--Section 
274(n)(2)(C) of the Internal Revenue Code of 1986 is amended by striking 
``or'' at the end of clause (iii) and by adding at the end the following 
new clause:
``(v) provided--
``(I) on a fishing vessel, fish 
processing vessel, or fish tender vessel 
(as such terms are defined in section 
2101 of title 46, United States Code), 
or
``(II) at a facility for the 
processing of fish for commercial use or 
consumption which--
``(aa) is located in the 
United States north of 50 
degrees north latitude, and
``(bb) is not located in a 
metropolitan statistical area 
(within the meaning of section 
143(k)(2)(B)), or''.

(c) <<NOTE: 26 USC 274 note.>> Effective Date.--The amendments made 
by this section shall apply to amounts paid or incurred after December 
31, 2025.
SEC. 70306. INCREASED DOLLAR LIMITATIONS FOR EXPENSING OF CERTAIN 
DEPRECIABLE BUSINESS ASSETS.

(a) In General.--Section 179(b) is amended--
(1) in paragraph (1), by striking ``$1,000,000'' and 
inserting ``$2,500,000'', and
(2) in paragraph (2), by striking ``$2,500,000'' and 
inserting ``$4,000,000''.

(b) Conforming Amendments.--Section 179(b)(6)(A) is amended--
(1) by inserting ``(2025 in the case of the dollar amounts 
in paragraphs (1) and (2))'' after ``In the case of any taxable 
year beginning after 2018'', and
(2) in clause (ii), by striking ``determined by substituting 
`calendar year 2017' for `calendar year 2016' in subparagraph 
(A)(ii) thereof.'' and inserting "determined by substituting in 
subparagraph (A)(ii) thereof-- ``
``(I) in the case of amounts in 
paragraphs (1) and (2), `calendar year 
2024' for `calendar year 2016', and

[[Page 139 STAT. 198]]

``(II) in the case of the amount in 
paragraph (5)(A), `calendar year 2017' 
for `calendar year 2016'.''.

(c) <<NOTE: 26 USC 179 note.>> Effective Date.--The amendments made 
by this section shall apply to property placed in service in taxable 
years beginning after December 31, 2024.
SEC. 70307. SPECIAL DEPRECIATION ALLOWANCE FOR QUALIFIED 
PRODUCTION PROPERTY.

(a) In General.--Section 168 is amended by adding at the end the 
following new subsection:
``(n) Special Allowance for Qualified Production Property.--
``(1) In general.--In the case of any qualified production 
property of a taxpayer making an election under this 
subsection--
``(A) the depreciation deduction provided by section 
167(a) for the taxable year in which such property is 
placed in service shall include an allowance equal to 
100 percent of the adjusted basis of the qualified 
production property, and
``(B) <<NOTE: Reduction.>> the adjusted basis of 
the qualified production property shall be reduced by 
the amount of such deduction before computing the amount 
otherwise allowable as a depreciation deduction under 
this chapter for such taxable year and any subsequent 
taxable year.
``(2) Qualified production property.--For purposes of this 
subsection--
``(A) <<NOTE: Definition.>> In general.--The term 
`qualified production property' means that portion of 
any nonresidential real property--
``(i) to which this section applies,
``(ii) which is used by the taxpayer as an 
integral part of a qualified production activity,
``(iii) which is placed in service in the 
United States or any possession of the United 
States,
``(iv) the original use of which commences 
with the taxpayer,
``(v) the construction of which begins after 
January 19, 2025, and before January 1, 2029,
``(vi) which is designated by the taxpayer in 
the election made under this subsection, and
``(vii) which is placed in service before 
January 1, 2031.
For purposes of clause (ii), in the case of property 
with respect to which the taxpayer is a lessor, property 
used by a lessee shall not be considered to be used by 
the taxpayer as part of a qualified production activity.
``(B) Special rule for certain property not 
previously used in qualified production activities.--
``(i) In general.--In the case of property 
acquired by the taxpayer during the period 
described in subparagraph (A)(v), the requirements 
of clauses (iv) and (v) of subparagraph (A) shall 
be treated as satisfied if--
``(I) <<NOTE: Time period.>> such 
property was not used in a qualified 
production activity (determined without 
regard to the second sentence of 
subparagraph (D)) by any

[[Page 139 STAT. 199]]

person at any time during the period 
beginning on January 1, 2021, and ending 
on May 12, 2025,
``(II) such property was not used by 
the taxpayer at any time prior to such 
acquisition, and
``(III) the acquisition of such 
property meets the requirements of 
paragraphs (2)(A), (2)(B), (2)(C), and 
(3) of section 179(d).
``(ii) Written binding contracts.--For 
purposes of determining under clause (i)--
``(I) whether such property is 
acquired before the period described in 
subparagraph (A)(v), such property shall 
be treated as acquired not later than 
the date on which the taxpayer enters 
into a written binding contract for such 
acquisition, and
``(II) whether such property is 
acquired after such period, such 
property shall be treated as acquired 
not earlier than such date.
``(C) Exclusion of office space, etc.--The term 
`qualified production property' shall not include that 
portion of any nonresidential real property which is 
used for offices, administrative services, lodging, 
parking, sales activities, research activities, software 
development or engineering activities, or other 
functions unrelated to the manufacturing, production, or 
refining of tangible personal property.
``(D) <<NOTE: Definition.>> Qualified production 
activity.--The term `qualified production activity' 
means the manufacturing, production, or refining of a 
qualified product. The activities of any taxpayer do not 
constitute manufacturing, production, or refining of a 
qualified product unless the activities of such taxpayer 
result in a substantial transformation of the property 
comprising the product.
``(E) Production.--The term `production' shall not 
include activities other than agricultural production 
and chemical production.
``(F) <<NOTE: Definition.>> Qualified product.--The 
term `qualified product' means any tangible personal 
property if such property is not a food or beverage 
prepared in the same building as a retail establishment 
in which such property is sold.
``(G) <<NOTE: Applicability.>> Syndication.--For 
purposes of subparagraph (A)(iv), rules similar to the 
rules of subsection (k)(2)(E)(iii) shall apply.
``(H) Extension of placed in service date under 
certain circumstances. <<NOTE: Determination.>> --The 
Secretary may extend the date under subparagraph 
(A)(vii) with respect to any property that meets the 
requirements of clauses (i) through (vi) of subparagraph 
(A) if the Secretary determines that an act of God (as 
defined in section 101(1) of the Comprehensive 
Environmental Response, Compensation, and Liability Act 
of 1980) prevents the taxpayer from placing such 
property in service before such date.
``(3) <<NOTE: Determination.>> Deduction allowed in 
computing minimum tax.--For purposes of determining alternative 
minimum taxable income under section 55, the deduction under 
section 167 for qualified production property shall be 
determined under this section without regard to any adjustment 
under section 56.
``(4) Coordination with certain other provisions.--

[[Page 139 STAT. 200]]

``(A) Other special depreciation allowances.--For 
purposes of subsections (k)(7), (l)(3)(D), and 
(m)(2)(B)(iii)--
``(i) qualified production property shall be 
treated as a separate class of property, and
``(ii) the taxpayer shall be treated as having 
made an election under such subsections with 
respect to such class.
``(B) Alternative depreciation property.--The term 
`qualified production property' shall not include any 
property to which the alternative depreciation system 
under subsection (g) 
applies. <<NOTE: Applicability.>> For purposes of 
subsection (g)(7)(A), qualified production property to 
which this subsection applies shall be treated as 
separate nonresidential real property.
``(5) <<NOTE: Time period.>> Recapture.--If, at any time 
during the 10-year period beginning on the date that any 
qualified production property is placed in service by the 
taxpayer, such property ceases to be used as described in 
paragraph (2)(A)(ii) and is used by the taxpayer in a productive 
use not described in paragraph (2)(A)(ii)--
``(A) <<NOTE: Applicability.>> section 1245 shall 
be applied--
``(i) by treating such property as having been 
disposed of by the taxpayer as of the first time 
such property is so used in a productive use not 
described in paragraph (2)(A)(ii), and
``(ii) by treating the amount described in 
subparagraph (B) of section 1245(a)(1) with 
respect to such disposition as being not less than 
the amount described in subparagraph (A) of such 
section, and
``(B) <<NOTE: Adjustment.>> the basis of the 
taxpayer in such property, and the taxpayer's allowance 
for depreciation with respect to such property, shall be 
appropriately adjusted to take into account amounts 
recognized by reason of subparagraph (A).
``(6) Election.--
``(A) In general.--An election under this subsection 
for any taxable year shall--
``(i) specify the nonresidential real property 
subject to the election and the portion of such 
property designated under paragraph (2)(A)(vi), 
and
``(ii) except as otherwise provided by the 
Secretary, be made on the taxpayer's return of the 
tax imposed by this chapter for the taxable year.
Such election shall be made in such manner as the 
Secretary may prescribe by regulations or other 
guidance.
``(B) Election.--Any election made under this 
subsection, and any specification contained in any such 
election, may not be revoked except with the consent of 
the Secretary (and the Secretary shall provide such 
consent only in extraordinary circumstances).
``(7) <<NOTE: Guidance.>> Regulations.--The Secretary shall 
issue such regulations or other guidance as may be necessary or 
appropriate to carry out the purposes of this subsection, 
including regulations or other guidance--
``(A) providing rules for regarding what constitutes 
substantial transformation of property which are 
consistent with guidance provided under section 954(d), 
and

[[Page 139 STAT. 201]]

``(B) <<NOTE: Applicability.>> providing for the 
application of paragraph (5) with respect to a change in 
use described in such paragraph by a transferee 
following a fully or partially tax free transfer of 
qualified production property.''.

(b) Treatment of Qualified Production Property as Section 1245 
Property.--Section 1245(a)(3) is amended by striking ``or'' at the end 
of subparagraph (E), by striking the period at the end of subparagraph 
(F) and inserting ``, or'', and by adding at the end the following new 
subparagraph:
``(G) any qualified production property (as defined 
in section 168(n)(2)).''.

(c) <<NOTE: 26 USC 168 note.>> 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. 70308. ENHANCEMENT OF ADVANCED MANUFACTURING INVESTMENT 
CREDIT.

(a) In General.--Section 48D(a) is amended by striking ``25 
percent'' and inserting ``35 percent''.
(b) <<NOTE: 26 USC 48D note.>> Effective Date.--The amendments made 
by this section shall apply to property placed in service after December 
31, 2025.
SEC. 70309. SPACEPORTS ARE TREATED LIKE AIRPORTS UNDER EXEMPT 
FACILITY BOND RULES.

(a) In General.--Section 142(a)(1) is amended to read as follows:
``(1) airports and spaceports,''.

(b) Treatment of Ground Leases.--Section 142(b)(1) is amended by 
adding at the end the following new subparagraph:
``(C) Special rule for spaceport ground leases.--For 
purposes of subparagraph (A), spaceport property located 
on land leased by a governmental unit from the United 
States shall not fail to be treated as owned by a 
governmental unit if the requirements of this paragraph 
are met by the lease and any subleases of the 
property.''.

(c) Definition of Spaceport.--Section 142 is amended by adding at 
the end the following new subsection:
``(p) Spaceport.--
``(1) In general.--For purposes of subsection (a)(1), the 
term `spaceport' means any facility located at or in close 
proximity to a launch site or reentry site used for--
``(A) manufacturing, assembling, or repairing 
spacecraft, space cargo, other facilities described in 
this paragraph, or any component of the foregoing,
``(B) flight control operations,
``(C) providing launch services and reentry 
services, or
``(D) transferring crew, spaceflight participants, 
or space cargo to or from spacecraft.
``(2) Additional terms.--For purposes of paragraph (1)--
``(A) Space cargo.--The term `space cargo' includes 
satellites, scientific experiments, other property 
transported into space, and any other type of payload, 
whether or not such property returns from space.
``(B) Spacecraft.--The term `spacecraft' means a 
launch vehicle or a reentry vehicle.
``(C) Other terms.--The terms `launch site', `crew', 
`space flight participant', `launch services', `launch 
vehicle',

[[Page 139 STAT. 202]]

`payload', `reentry services', `reentry site', a 
`reentry vehicle' shall have the respective meanings 
given to such terms by section 50902 of title 51, United 
States Code (as in effect on the date of enactment of 
this subsection).
``(3) Public use requirement.--A facility shall not be 
required to be available for use by the general public to be 
treated as a spaceport for purposes of this section.
``(4) Manufacturing facilities and industrial parks 
allowed.--With respect to spaceports, subsection (c)(2)(E) shall 
not apply to spaceport property described in paragraph 
(1)(A).''.

(d) Exception From Federally Guaranteed Bond Prohibition.--Section 
149(b)(3) is amended by adding at the end the following new 
subparagraph:
``(F) Exception for spaceports.--A bond shall not be 
treated as federally guaranteed merely because of the 
payment of rent, user fees, or other charges by the 
United States (or any agency or instrumentality thereof) 
in exchange for the use of the spaceport by the United 
States (or any agency or instrumentality thereof).''.

(e) Conforming Amendment.--The heading for section 142(c) is amended 
by inserting ``Spaceports,'' after ``Airports,''.
(f) <<NOTE: 26 USC 142 note.>> Effective Date.--The amendments made 
by this section shall apply to obligations issued after the date of the 
enactment of this Act.

Subchapter B--Permanent America-first International Tax Reforms

PART I--FOREIGN TAX CREDIT

SEC. 70311. MODIFICATIONS RELATED TO FOREIGN TAX CREDIT 
LIMITATION.

(a) Rules for Allocation of Certain Deductions to Foreign Source Net 
CFC Tested Income for Purposes of Foreign Tax Credit Limitation.--
Section 904(b) is amended by adding at the end the following new 
paragraph:
``(5) Deductions treated as allocable to foreign source net 
cfc tested income.--Solely for purposes of the application of 
subsection (a) with respect to amounts described in subsection 
(d)(1)(A), the taxpayer's taxable income from sources without 
the United States shall be determined by allocating and 
apportioning--
``(A) any deduction allowed under section 
250(a)(1)(B) (and any deduction allowed under section 
164(a)(3) for taxes imposed on amounts described in 
section 250(a)(1)(B)) to such income,
``(B) no amount of interest expense or research and 
experimental expenditures to such income, and
``(C) any other deduction to such income only if 
such deduction is directly allocable to such income.
Any amount or deduction which would (but for subparagraphs (B) 
and (C)) have been allocated or apportioned to such income shall 
only be allocated or apportioned to income which is from sources 
within the United States.''.

(b) Other Modifications.--
(1) Section 904(d)(2)(H)(i) is amended by striking 
``paragraph (1)(B)'' and inserting ``paragraph (1)(D)''.

[[Page 139 STAT. 203]]

(2) Section 904(d)(4)(C)(ii) is amended by striking 
``paragraph (1)(A)'' and inserting ``paragraph (1)(C)''.
(3) Section 951A(f)(1)(A) is amended by striking 
``904(h)(1)'' and inserting ``904(h)''.

(c) <<NOTE: 26 USC 904 note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2025.
SEC. 70312. MODIFICATIONS TO DETERMINATION OF DEEMED PAID CREDIT 
FOR TAXES PROPERLY ATTRIBUTABLE TO 
TESTED INCOME.

(a) Increase in Deemed Paid Credit.--
(1) In general.--Section 960(d)(1) is amended by striking 
``80 percent'' and inserting ``90 percent''.
(2) Gross up for deemed paid foreign tax credit.--Section 78 
is amended--
(A) by striking ``subsections (a), (b), and (d)'' 
and inserting ``subsections (a) and (d)'', and
(B) by striking ``80 percent'' and inserting ``90 
percent''.

(b) Disallowance of Foreign Tax Credit With Respect to Distributions 
of Previously Taxed Net CFC Tested Income.--Section 960(d) is amended by 
adding at the end the following new paragraph:
``(4) Disallowance of foreign tax credit with respect to 
distributions of previously taxed net cfc tested income.--No 
credit shall be allowed under section 901 for 10 percent of any 
foreign income taxes paid or accrued (or deemed paid under 
subsection (b)(1)) with respect to any amount excluded from 
gross income under section 959(a) by reason of an inclusion in 
gross income under section 951A(a).''.

(c) <<NOTE: 26 USC 78 note.>> Effective Dates.--
(1) In general.--The amendments made by subsection (a) shall 
apply to taxable years beginning after December 31, 2025.
(2) Disallowance.--The amendment made by subsection (b) 
shall apply to foreign income taxes paid or accrued (or deemed 
paid under section 960(b)(1) of the Internal Revenue Code of 
1986) with respect to any amount excluded from gross income 
under section 959(a) of such Code by reason of an inclusion in 
gross income under section 951A(a) of such Code after June 28, 
2025.
SEC. 70313. SOURCING CERTAIN INCOME FROM THE SALE OF INVENTORY 
PRODUCED IN THE UNITED STATES.

(a) In General.--Section 904(b), as amended by section 70311, is 
amended by adding at the end the following new paragraph:
``(6) Source rules for certain inventory produced in the 
united states and sold through foreign branches.--For purposes 
of this section, if a United States person maintains an office 
or other fixed place of business in a foreign country 
(determined under rules similar to the rules of section 
864(c)(5)), the portion of income which--
``(A) is from the sale or exchange outside the 
United States of inventory property (within the meaning 
of section 865(i)(1))--
``(i) which is produced in the United States,
``(ii) which is for use outside the United 
States, and

[[Page 139 STAT. 204]]

``(iii) to which the third sentence of section 
863(b) applies, and
``(B) is attributable (determined under rules 
similar to the rules of section 864(c)(5)) to such 
office or other fixed place of business,
shall be treated as from sources without the United States, 
except that the amount so treated shall not exceed 50 percent of 
the income from the sale or exchange of such inventory 
property.''.

(b) <<NOTE: 26 USC 904 note.>> Effective Date.--The amendment made 
by this section shall apply to taxable years beginning after December 
31, 2025.

PART II--FOREIGN-DERIVED DEDUCTION ELIGIBLE INCOME AND NET CFC TESTED 
INCOME

SEC. 70321. MODIFICATION OF DEDUCTION FOR FOREIGN-DERIVED 
DEDUCTION ELIGIBLE INCOME AND NET CFC 
TESTED INCOME.

(a) In General.--Section 250(a) is amended--
(1) by striking ``37.5 percent'' in paragraph (1)(A) and 
inserting ``33.34 percent'',
(2) by striking ``50 percent'' in paragraph (1)(B) and 
inserting ``40 percent'', and
(3) by striking paragraph (3).

(b) <<NOTE: 26 USC 250 note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2025.
SEC. 70322. DETERMINATION OF DEDUCTION ELIGIBLE INCOME.

(a) Sales or Other Dispositions of Certain Property.--
(1) In general.--Section 250(b)(3)(A)(i) is amended--
(A) by striking ``and'' at the end of subclause (V),
(B) by striking ``over'' at the end of subclause 
(VI) and inserting ``and'', and
(C) by adding at the end the following new 
subclause:
``(VII) except as otherwise provided 
by the Secretary, any income and gain 
from the sale or other disposition 
(including pursuant to the deemed sale 
or other deemed disposition or a 
transaction subject to section 367(d)) 
of--
``(aa) intangible property 
(as defined in section 
367(d)(4)), and
``(bb) any other property of 
a type that is subject to 
depreciation, amortization, or 
depletion by the seller, over''.
(2) Conforming amendment.--Section 250(b)(5)(E) is amended 
by inserting ``(other than paragraph (3)(A)(i)(VII))'' after 
``For purposes of this subsection''.
(3) <<NOTE: 26 USC 250 note.>> Effective date.--The 
amendments made by this subsection shall apply to sales or other 
dispositions (including pursuant to deemed sales or other deemed 
dispositions or a transaction subject to section 367(d) of the 
Internal Revenue Code of 1986) occurring after June 16, 2025.

(b) Expense Apportionment Limited to Properly Allocable Expenses.--

[[Page 139 STAT. 205]]

(1) In general.--Section 250(b)(3)(A)(ii) is amended to read 
as follows:
``(ii) expenses and deductions (including 
taxes), other than interest expense and research 
or experimental expenditures, properly allocable 
to such gross income.''.
(2) <<NOTE: 26 USC 250 note.>> Effective date.--The 
amendment made by this subsection shall apply to taxable years 
beginning after December 31, 2025.
SEC. 70323. RULES RELATED TO DEEMED INTANGIBLE INCOME.

(a) Taxation of Net CFC Tested Income.--
(1) In general.--Section 951A(a) is amended by striking 
``global intangible low-taxed income'' and inserting ``net CFC 
tested income''.
(2) Repeal of tax-free deemed return on foreign 
investments.--Section 951A, as amended by the preceding 
provisions of this Act, is amended by striking subsections (b) 
and (d) and by redesignating subsections (c), (e), and (f) as 
subsections (b), (c), and (d), respectively.
(3) Conforming amendments.--
(A)(i) Section 250 is amended by striking ``global 
intangible low-taxed income'' each place it appears in 
subsections (a)(1)(B)(i), (a)(2), and (b)(3)(A)(i)(II) 
and inserting ``net CFC tested income''.
(ii) The heading for section 250 of such Code is 
amended by striking ``global intangible low-taxed 
income'' and inserting ``net cfc tested income''.
(iii) The item relating to section 250 in the table 
of sections for part VII of subchapter B of chapter 1 of 
such Code <<NOTE: 26 USC prec. 241.>> is amended by 
striking ``global intangible low-taxed income'' and 
inserting ``net CFC tested income''.
(B) Section 951A(c)(1), as redesignated by paragraph 
(2), is amended by striking ``subsections (b), 
(c)(1)(A), and (c)(1)(B)'' and inserting ``subsections 
(b)(1)(A) and (b)(1)(B)''.
(C) Section 951A(d), as redesignated by paragraph 
(2), is amended--
(i) by striking ``global intangible low-taxed 
income'' each place it appears and inserting ``net 
CFC tested income'', and
(ii) by striking ``subsection (c)(1)(A)'' in 
paragraph (2)(B)(ii) and inserting ``subsection 
(b)(1)(A)''.
(D) Section 960(d)(2) is amended--
(i) by striking ``global intangible low-taxed 
income'' in subparagraph (A) and inserting ``net 
CFC tested income'', and
(ii) by striking ``section 951A(c)(1)(A)'' in 
subparagraph (B) and inserting ``section 
951A(b)(1)(A)''.
(E)(i) The heading for section 951A is amended by 
striking ``global intangible low-taxed income'' and 
inserting ``net cfc tested income''.
(ii) The item relating to section 951A in the table 
of sections for subpart F of part III of subchapter N of 
chapter 1 <<NOTE: 26 USC prec. 951.>> is amended by 
striking ``Global intangible low-taxed income'' and 
inserting ``Net CFC tested income''.

(b) Deduction for Foreign-derived Deduction Eligible Income.--

[[Page 139 STAT. 206]]

(1) In general.--Section 250(a)(1)(A) is amended by striking 
``foreign-derived intangible income'' and inserting ``foreign-
derived deduction eligible income''.
(2) Conforming amendments.--
(A) Section 250(a)(2) is amended by striking 
``foreign-derived intangible income'' each place it 
appears and inserting ``foreign-derived deduction 
eligible income''.
(B) Section 250(b), as amended by subsection (a), is 
amended--
(i) by striking paragraphs (1) and (2),
(ii) by redesignating paragraphs (4) and (5) 
as paragraphs (1) and (2), respectively, and by 
moving such paragraphs before paragraph (3),
(iii) in paragraph (2)(B)(ii), as so 
redesignated, by striking ``paragraph (4)(B)'' and 
inserting ``paragraph (1)(B)'', and
(iv) by striking ``Intangible'' in the heading 
thereof and inserting ``Deduction Eligible''.
(C)(i) The heading for section 250 is amended by 
striking ``intangible'' in the heading thereof and 
inserting ``deduction eligible''.
(ii) The heading for section 172(d)(9) is amended by 
striking ``intangible'' and inserting ``deduction 
eligible''.
(iii) The item relating to section 250 in the table 
of sections for part VIII of subchapter B of chapter 
1 <<NOTE: 26 USC prec. 241.>> is amended by striking 
``intangible'' and inserting ``deduction eligible''.

(c) <<NOTE: 26 USC 172 note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2025.

PART III--BASE EROSION MINIMUM TAX

SEC. 70331. EXTENSION AND MODIFICATION OF BASE EROSION MINIMUM TAX 
AMOUNT.

(a) In General.--Section 59A(b) is amended--
(1) by striking ``10 percent'' in paragraph (1) and 
inserting ``10.5 percent'', and
(2) by striking paragraph (2) and by redesignating 
paragraphs (3) and (4) as paragraphs (2) and (3), respectively.

(b) Conforming Amendments.--
(1) Section 59A(b)(1) is amended by striking ``Except as 
provided in paragraphs (2) and (3)'' and inserting ``Except as 
provided in paragraph (2)''.
(2) Section 59A(b)(2), as redesignated by subsection (a)(2), 
is amended by striking ``the percentage otherwise in effect 
under paragraphs (1)(A) and (2)(A) shall each be increased'' and 
inserting ``the percentages otherwise in effect under paragraph 
(1)(A) shall be increased''.
(3) Section 59A(e)(1)(C) is amended by striking ``in the 
case of a taxpayer described in subsection (b)(3)(B)'' and 
inserting ``in the case of a taxpayer described in subsection 
(b)(2)(B)''.

(c) Other Modifications.--
(1) Section 59A(b)(2)(B)(ii), as redesignated by subsection 
(a)(2), is amended by striking ``registered securities dealer'' 
and inserting ``securities dealer registered''.

[[Page 139 STAT. 207]]

(2) Section 59A(h)(2)(B) is amended by striking ``section 
6038B(b)(2)'' and inserting ``section 6038A(b)(2)''.
(3) Section 59A(i)(2) is amended--
(A) by striking ``subsection (g)'' and inserting 
``subsection (h)'', and
(B) by striking ``subsection (g)(3)'' and inserting 
``subsection (h)(3)''.

(d) <<NOTE: 26 USC 59A note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2025.

PART IV--BUSINESS INTEREST LIMITATION

SEC. 70341. COORDINATION OF BUSINESS INTEREST LIMITATION WITH 
INTEREST CAPITALIZATION PROVISIONS.

(a) In General.--Section 163(j) is amended by redesignating 
paragraphs (10) and (11) as paragraphs (11) and (12) and by inserting 
after paragraph (9) the following:
``(10) Coordination with interest capitalization 
provisions.--
``(A) <<NOTE: Applicability.>> In general.--In 
applying this subsection--
``(i) the limitation under paragraph (1) shall 
apply to business interest without regard to 
whether the taxpayer would otherwise deduct such 
business interest or capitalize such business 
interest under an interest capitalization 
provision, and
``(ii) any reference in this subsection to a 
deduction for business interest shall be treated 
as including a reference to the capitalization of 
business interest.
``(B) Amount allowed applied first to capitalized 
interest.--The amount allowed after taking into account 
the limitation described in paragraph (1)--
``(i) shall be applied first to the aggregate 
amount of business interest which would otherwise 
be capitalized, and
``(ii) the remainder (if any) shall be applied 
to the aggregate amount of business interest which 
would be deducted.
``(C) Treatment of disallowed interest carried 
forward.--No portion of any business interest carried 
forward under paragraph (2) from any taxable year to any 
succeeding taxable year shall, for purposes of this 
title (including any interest capitalization provision 
which previously applied to such portion) be treated as 
interest to which an interest capitalization provision 
applies.
``(D) <<NOTE: Definition.>> Interest capitalization 
provision.--For purposes of this section, the term 
`interest capitalization provision' means any provision 
of this subtitle under which interest--
``(i) is required to be charged to capital 
account, or
``(ii) may be deducted or charged to capital 
account.''.

(b) Certain Capitalized Interest Not Treated as Business Interest.--
Section 163(j)(5) is amended by adding at the end the following new 
sentence: ``Such term shall not include any interest which is 
capitalized under section 263(g) or 263A(f).''.

[[Page 139 STAT. 208]]

(c) Regulatory Authority.--Section 163(j), as amended by subsection 
(a), is amended by redesignating paragraphs (11) and (12) as paragraphs 
(12) and (13) and by inserting after paragraph (10) the following:
``(11) <<NOTE: Guidance. Determination.>> Regulatory 
authority.--The Secretary shall issue such regulations or 
guidance as may be necessary or appropriate to carry out the 
purposes of this subsection, including regulations or guidance 
to determine which business interest is taken into account under 
this subsection and section 59A(c)(3).''.

(d) <<NOTE: 26 USC 163 note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2025.
SEC. 70342. DEFINITION OF ADJUSTED TAXABLE INCOME FOR BUSINESS 
INTEREST LIMITATION.

(a) In General.--Subparagraph (A) of section 163(j)(8) is amended--
(1) by striking ``and'' at the end of clause (iv), and
(2) by adding at the end the following new clause:
``(vi) the amounts included in gross income 
under sections 951(a), 951A(a), and 78 (and the 
portion of the deductions allowed under sections 
245A(a) (by reason of section 964(e)(4)) and 
250(a)(1)(B) by reason of such inclusions), and''.

(b) <<NOTE: 26 USC 163 note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2025.

PART V--OTHER INTERNATIONAL TAX REFORMS

SEC. 70351. PERMANENT EXTENSION OF LOOK-THRU RULE FOR RELATED 
CONTROLLED FOREIGN CORPORATIONS.

(a) In General.--Section 954(c)(6)(C) is amended by striking ``and 
before January 1, 2026,''.
(b) <<NOTE: 26 USC 954 note.>> Effective Date.--The amendment made 
by this section shall apply to taxable years of foreign corporations 
beginning after December 31, 2025.
SEC. 70352. REPEAL OF ELECTION FOR 1-MONTH DEFERRAL IN 
DETERMINATION OF TAXABLE YEAR OF 
SPECIFIED FOREIGN CORPORATIONS.

(a) In General.--Section 898(c) is amended by striking paragraph (2) 
and redesignating paragraph (3) as paragraph (2).
(b) <<NOTE: 26 USC 898 note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years of specified foreign 
corporations beginning after November 30, 2025.

(c) Transition Rule.--
(1) <<NOTE: Effective date.>> In general.--In the case of a 
corporation that is a specified foreign corporation as of 
November 30, 2025, such corporation's first taxable year 
beginning after such date shall end at the same time as the 
first required year (within the meaning of section 898(c)(1) of 
the Internal Revenue Code of 1986) ending after such date. If 
any specified foreign corporation is required by the amendments 
made by this section to change its taxable year for its first 
taxable year beginning after November 30, 2025--

[[Page 139 STAT. 209]]

(A) such change shall be treated as initiated by 
such corporation,
(B) such change shall be treated as having been made 
with the consent of the Secretary, and
(C) <<NOTE: Regulations. Guidance. Allocations.>> 
the Secretary shall issue regulations or other guidance 
for allocating foreign taxes that are paid or accrued in 
such first taxable year and the succeeding taxable year 
among such taxable years in the manner the Secretary 
determines appropriate to carry out the purposes of this 
section.
(2) <<NOTE: Definition.>> Secretary.--For purposes of this 
subsection, the term ``Secretary'' means the Secretary of the 
Treasury or the Secretary's delegate.
SEC. 70353. RESTORATION OF LIMITATION ON DOWNWARD ATTRIBUTION OF 
STOCK OWNERSHIP IN APPLYING 
CONSTRUCTIVE OWNERSHIP RULES.

(a) In General.--Section 958(b) is amended--
(1) by inserting after paragraph (3) the following:
``(4) Subparagraphs (A), (B), and (C) of section 318(a)(3) 
shall not be applied so as to consider a United States person as 
owning stock which is owned by a person who is not a United 
States person.'', and
(2) by striking ``Paragraph (1)'' in the last sentence and 
inserting ``Paragraphs (1) and (4)''.

(b) Foreign Controlled United States Shareholders.--Subpart F of 
part III of subchapter N of chapter 1 is amended by inserting after 
section 951A the following new section:
``SEC. 951B. <<NOTE: Definitions. 26 USC 951B.>> AMOUNTS INCLUDED 
IN GROSS INCOME OF FOREIGN CONTROLLED 
UNITED STATES SHAREHOLDERS.

``(a) <<NOTE: Applicability.>> In General.--In the case of any 
foreign controlled United States shareholder of a foreign controlled 
foreign corporation--
``(1) this subpart (other than sections 951A, 951(b), and 
957) shall be applied with respect to such shareholder 
(separately from, and in addition to, the application of this 
subpart without regard to this section)--
``(A) by substituting `foreign controlled United 
States shareholder' for `United States shareholder' each 
place it appears therein, and
``(B) by substituting `foreign controlled foreign 
corporation' for `controlled foreign corporation' each 
place it appears therein, and
``(2) section 951A (and such other provisions of this 
subpart as provided by the Secretary) shall be applied with 
respect to such shareholder--
``(A) by treating each reference to `United States 
shareholder' in such section as including a reference to 
such shareholder, and
``(B) by treating each reference to `controlled 
foreign corporation' in such section as including a 
reference to such foreign controlled foreign 
corporation.

``(b) Foreign Controlled United States Shareholder.--For purposes of 
this section, the term `foreign controlled United States shareholder' 
means, with respect to any foreign corporation, any United States person 
which would be a United States shareholder with respect to such foreign 
corporation if--

[[Page 139 STAT. 210]]

``(1) section 951(b) were applied by substituting `more than 
50 percent' for `10 percent or more', and
``(2) section 958(b) were applied without regard to 
paragraph (4) thereof.

``(c) Foreign Controlled Foreign Corporation.--For purposes of this 
section, the term `foreign controlled foreign corporation' means a 
foreign corporation, other than a controlled foreign corporation, which 
would be a controlled foreign corporation if section 957(a) were 
applied--
``(1) by substituting `foreign controlled United States 
shareholders' for `United States shareholders', and
``(2) by substituting `section 958(b) (other than paragraph 
(4) thereof)' for `section 958(b)'.

``(d) <<NOTE: Guidance.>> Regulations.--The Secretary shall 
prescribe such regulations or other guidance as may be necessary or 
appropriate to carry out the purposes of this section, including 
regulations or other guidance--
``(1) to treat a foreign controlled United States 
shareholder or a foreign controlled foreign corporation as a 
United States shareholder or as a controlled foreign 
corporation, respectively, for purposes of provisions of this 
title other than this subpart (including any reporting 
requirement), and
``(2) with respect to the treatment of foreign controlled 
foreign corporations that are passive foreign investment 
companies (as defined in section 1297).''.

(c) Clerical Amendment.--The table of sections for subpart F of part 
III of subchapter N of chapter 1 <<NOTE: 26 USC prec. 951.>> is amended 
by inserting after the item relating to section 951A the following new 
item:

``Sec. 951B. Amounts included in gross income of foreign controlled 
United States shareholders.''.

(d) <<NOTE: 26 USC 951B note.>> Effective Date.--The amendments 
made by this section shall apply to taxable years of foreign 
corporations beginning after December 31, 2025.

(e) <<NOTE: 26 USC 951B note.>> Special Rule.--
(1) In general.--Except to the extent provided by the 
Secretary of the Treasury (or the Secretary's delegate), the 
effective date of any amendment to the Internal Revenue Code of 
1986 shall be applied by treating references to United States 
shareholders as including references to foreign controlled 
United States shareholders, and by treating references to 
controlled foreign corporations as including references to 
foreign controlled foreign corporations.
(2) Definitions.--Any term used in paragraph (1) which is 
used in subpart F of part III of subchapter N of chapter 1 of 
the Internal Revenue Code of 1986 (as amended by this section) 
shall have the meaning given such term in such subpart.

(f) <<NOTE: 26 USC 951B note.>> No Inference.--The amendments made 
by this section shall not be construed to create any inference with 
respect to the proper application of any provision of the Internal 
Revenue Code of 1986 with respect to taxable years beginning before the 
taxable years to which such amendments apply.
SEC. 70354. MODIFICATIONS TO PRO RATA SHARE RULES.

(a) In General.--Subsection (a) of section 951 is amended to read as 
follows:
``(a) Amounts Included.--

[[Page 139 STAT. 211]]

``(1) In general.--If a foreign corporation is a controlled 
foreign corporation at any time during a taxable year of the 
foreign corporation (in this subsection referred to as the `CFC 
year')--
``(A) each United States shareholder which owns 
(within the meaning of section 958(a)) stock in such 
corporation on any day during the CFC year shall include 
in gross income such shareholder's pro rata share 
(determined under paragraph (2)) of the corporation's 
subpart F income for the CFC year, and
``(B) each United States shareholder which owns 
(within the meaning of section 958(a)) stock in such 
corporation on the last day, in the CFC year, on which 
such corporation is a controlled foreign corporation 
shall include in gross income the amount determined 
under section 956 with respect to such shareholder for 
the CFC year (but only to the extent not excluded from 
gross income under section 959(a)(2)).
``(2) Pro rata share of subpart f income.--A United States 
shareholder's pro rata share of a controlled foreign 
corporation's subpart F income for a CFC year shall be the 
portion of such income which is attributable to--
``(A) the stock of such corporation owned (within 
the meaning of section 958(a)) by such shareholder, and
``(B) any period of the CFC year during which--
``(i) such shareholder owned (within the 
meaning of section 958(a)) such stock,
``(ii) such shareholder was a United States 
shareholder of such corporation, and
``(iii) such corporation was a controlled 
foreign corporation.
``(3) Taxable year of inclusion.--Any amount required to be 
included in gross income by a United States shareholder under 
paragraph (1) with respect to a CFC year shall be included in 
gross income for the shareholder's taxable year which includes 
the last day on which the shareholder owns (within the meaning 
of section 958(a)) stock in the controlled foreign corporation 
during such CFC year.
``(4) <<NOTE: Guidance.>> Regulatory authority.--The 
Secretary shall prescribe such regulations or other guidance as 
may be necessary or appropriate to carry out the purposes of 
this subsection, including regulations or other guidance 
allowing taxpayers to elect, or requiring taxpayers, to close 
the taxable year of a controlled foreign corporation upon a 
direct or indirect disposition of stock of such corporation.''.

(b) Coordination With Section 951A.--
(1) Tested income.--Section 951A(b), as redesignated by 
section 70323(a)(2), is amended--
(A) in paragraph (1)(A), by striking ``(determined 
for each taxable year of such controlled foreign 
corporation which ends in or with such taxable year of 
such United States shareholder)'', and
(B) in paragraph (1)(B), by striking ``(determined 
for each taxable year of such controlled foreign 
corporation which ends in or with such taxable year of 
such United States shareholder)''.

[[Page 139 STAT. 212]]

(2) Pro rata share.--Section 951A(c), as redesignated by 
section 70323(a)(2), is amended--
(A) in paragraph (1), by striking ``in which or with 
which the taxable year of the controlled foreign 
corporation ends'' and inserting ``determined under 
section 951(a)(3)'', and
(B) in paragraph (2), by striking ``the last day in 
the taxable year of such foreign corporation on which 
such foreign corporation is a controlled foreign 
corporation'' and inserting ``any day in such taxable 
year''.

(c) <<NOTE: 26 USC 951 note.>> Effective Dates.--
(1) In general.--The amendments made by this section shall 
apply to taxable years of foreign corporations beginning after 
December 31, 2025.
(2) Transition rule for dividends.--Except to the extent 
provided by the Secretary of the Treasury (or the Secretary's 
delegate), a dividend paid (or deemed paid) by a controlled 
foreign corporation shall not be treated as a dividend for 
purposes of applying section 951(a)(2)(B) of the Internal 
Revenue Code of 1986 (as in effect before the amendments made by 
this section) if--
(A) such dividend--
(i) was paid (or deemed paid) on or before 
June 28, 2025, during the taxable year of such 
controlled foreign corporation which includes such 
date and the United States shareholder described 
in section 951(a)(1) of such Code (as so in 
effect) did not own (within the meaning of section 
958(a) of such Code) the stock of such controlled 
foreign corporation during the portion of such 
taxable year on or before June 28, 2025, or
(ii) was paid (or deemed paid) after June 28, 
2025, and before such controlled foreign 
corporation's first taxable year beginning after 
December 31, 2025, and
(B) such dividend does not increase the taxable 
income of a United States person that is subject to 
Federal income tax for the taxable year (including by 
reason of a dividends received deduction, an exclusion 
from gross income, or an exclusion from subpart F 
income).

CHAPTER 4--INVESTING IN AMERICAN FAMILIES, COMMUNITIES, AND SMALL 
BUSINESSES

Subchapter A--Permanent Investments in Families and Children

SEC. 70401. ENHANCEMENT OF EMPLOYER-PROVIDED CHILD CARE CREDIT.

(a) Increase of Amount of Qualified Child Care Expenditures Taken 
Into Account.--Section 45F(a)(1) is amended by striking ``25 percent'' 
and inserting ``40 percent (50 percent in the case of an eligible small 
business)''.
(b) Increase of Maximum Credit Amount.--Subsection (b) of section 
45F is amended to read as follows:
``(b) Dollar Limitation.--

[[Page 139 STAT. 213]]

``(1) In general.--The credit allowable under subsection (a) 
for any taxable year shall not exceed $500,000 ($600,000 in the 
case of an eligible small business).
``(2) <<NOTE: Effective date.>> Inflation adjustment.--In 
the case of any taxable year beginning after 2026, the $500,000 
and $600,000 amounts in paragraph (1) shall each be increased by 
an amount equal to--
``(A) such dollar amount, multiplied by
``(B) 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 2025' for `calendar year 2016' in 
subparagraph (A)(ii) thereof.''.

(c) Eligible Small Business.--Section 45F(c) is amended by adding at 
the end the following new paragraph:
``(4) <<NOTE: Definition.>> Eligible small business.--The 
term `eligible small business' means a business that meets the 
gross receipts test of section 448(c), determined--
``(A) by substituting `5-taxable-year' for `3-
taxable-year' in paragraph (1) thereof, and
``(B) by substituting `5-year' for `3-year' in 
paragraph (3)(A) thereof.''.

(d) Credit Allowed for Third-party Intermediaries.--Section 
45F(c)(1)(A)(iii) is amended by inserting ``, or under a contract with 
an intermediate entity that contracts with one or more qualified child 
care facilities to provide such child care services'' before the period 
at the end.
(e) Treatment of Jointly Owned or Operated Child Care Facility.--
Section 45F(c)(2) is amended by adding at the end the following new 
subparagraph:
``(C) Treatment of jointly owned or operated child 
care facility.--A facility shall not fail to be treated 
as a qualified child care facility of the taxpayer 
merely because such facility is jointly owned or 
operated by the taxpayer and other persons.''.

(f) Regulations and Guidance.--Section 45F is amended by adding at 
the end the following new subsection:
``(g) Regulations and Guidance.--The Secretary shall issue such 
regulations or other guidance as may be necessary to carry out the 
purposes of this section, including guidance to carry out the purposes 
of paragraphs (1)(A)(iii) and (2)(C) of subsection (c).''.
(g) <<NOTE: 26 USC 45F note.>> Effective Date.--The amendments made 
by this section shall apply to amounts paid or incurred after December 
31, 2025.
SEC. 70402. ENHANCEMENT OF ADOPTION CREDIT.

(a) In General.--Section 23(a) is amended by adding at the end the 
following new paragraph:
``(4) Portion of credit refundable.--So much of the credit 
allowed under paragraph (1) as does not exceed $5,000 shall be 
treated as a credit allowed under subpart C and not as a credit 
allowed under this subpart.''.

(b) Adjustments for Inflation.--Section 23(h) is amended to read as 
follows:
``(h) Adjustments for Inflation.--
``(1) <<NOTE: Effective date.>> In general.--In the case of 
a taxable year beginning after December 31, 2002, each of the 
dollar amounts in paragraphs (3) and (4) of subsection (a) and 
paragraphs (1) and

[[Page 139 STAT. 214]]

(2)(A)(i) of subsection (b) shall be increased by an amount 
equal to--
``(A) such dollar amount, multiplied by
``(B) <<NOTE: Determination.>> 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 2001' for 
`calendar year 2016' in subparagraph (A)(ii) thereof.
``(2) Rounding.--If any amount as increased under paragraph 
(1) is not a multiple of $10, such amount shall be rounded to 
the nearest multiple of $10.
``(3) <<NOTE: Applicability.>> Special rule for refundable 
portion.--In the case of the dollar amount in subsection (a)(4), 
paragraph (1) shall be applied--
``(A) by substituting `2025' for `2002' in the 
matter preceding subparagraph (A), and
``(B) by substituting `calendar year 2024' for 
`calendar year 2001' in subparagraph (B) thereof.''.

(c) Exclusion of Refundable Portion of Credit From Carryforward.--
Section 23(c)(1) is amended by striking ``credit allowable under 
subsection (a)'' and inserting ``portion of the credit allowable under 
subsection (a) which is allowed under this subpart''.
(d) <<NOTE: 26 USC 23 note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2024.
SEC. 70403. RECOGNIZING INDIAN TRIBAL GOVERNMENTS FOR PURPOSES OF 
DETERMINING WHETHER A CHILD HAS 
SPECIAL NEEDS FOR PURPOSES OF THE 
ADOPTION CREDIT.

(a) In General.--Section 23(d)(3) is amended--
(1) in subparagraph (A), by inserting ``or Indian tribal 
government'' after ``a State'', and
(2) in subparagraph (B), by inserting ``or Indian tribal 
government'' after ``such State''.

(b) <<NOTE: 26 USC 23 note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2024.
SEC. 70404. ENHANCEMENT OF THE DEPENDENT CARE ASSISTANCE PROGRAM.

(a) In General.--Section 129(a)(2)(A) is amended by striking 
``$5,000 ($2,500'' and inserting ``$7,500 ($3,750''.
(b) <<NOTE: 26 USC 129 note.>> Effective Date.--The amendment made 
by this section shall apply to taxable years beginning after December 
31, 2025.
SEC. 70405. ENHANCEMENT OF CHILD AND DEPENDENT CARE TAX CREDIT.

(a) In General.--Paragraph (2) of section 21(a) is amended to read 
as follows:
``(2) Applicable percentage defined.--For purposes of 
paragraph (1), the term `applicable percentage' means 50 
percent--
``(A) reduced (but not below 35 percent) by 1 
percentage point for each $2,000 or fraction thereof by 
which the taxpayer's adjusted gross income for the 
taxable year exceeds $15,000, and
``(B) further reduced (but not below 20 percent) by 
1 percentage point for each $2,000 ($4,000 in the case 
of a joint return) or fraction thereof by which the 
taxpayer's

[[Page 139 STAT. 215]]

adjusted gross income for the taxable year exceeds 
$75,000 ($150,000 in the case of a joint return).''.

(b) <<NOTE: 26 USC 21 note.>> Effective Date.--The amendment made 
by this section shall apply to taxable years beginning after December 
31, 2025.

Subchapter B--Permanent Investments in Students and Reforms to Tax-
exempt Institutions

SEC. 70411. TAX CREDIT FOR CONTRIBUTIONS OF INDIVIDUALS TO 
SCHOLARSHIP GRANTING ORGANIZATIONS.

(a) Allowance of Credit for Contributions of Individuals to 
Scholarship Granting Organizations.--
(1) In general.--Subpart A of part IV of subchapter A of 
chapter 1 is amended by inserting after section 25E the 
following new section:
``SEC. 25F. <<NOTE: 26 USC 25F.>> QUALIFIED ELEMENTARY AND 
SECONDARY EDUCATION SCHOLARSHIPS.

``(a) Allowance of Credit.--In the case of an individual who is a 
citizen or resident of the United States (within the meaning of section 
7701(a)(9)), there shall be allowed as a credit against the tax imposed 
by this chapter for the taxable year an amount equal to the aggregate 
amount of qualified contributions made by the taxpayer during the 
taxable year.
``(b) Limitations.--
``(1) In general.--The credit allowed under subsection (a) 
to any taxpayer for any taxable year shall not exceed $1,700.
``(2) Reduction based on state credit.--The amount allowed 
as a credit under subsection (a) for a taxable year shall be 
reduced by the amount allowed as a credit on any State tax 
return of the taxpayer for qualified contributions made by the 
taxpayer during the taxable year.

``(c) Definitions.--For purposes of this section--
``(1) Covered state.--The term `covered State' means one of 
the States, or the District of Columbia, that, for a calendar 
year, voluntarily elects to participate under this section and 
to identify scholarship granting organizations in the State, in 
accordance with subsection (g).
``(2) Eligible student.--The term `eligible student' means 
an individual who--
``(A) is a member of a household with an income 
which, for the calendar year prior to the date of the 
application for a scholarship, is not greater than 300 
percent of the area median gross income (as such term is 
used in section 42), and
``(B) is eligible to enroll in a public elementary 
or secondary school.
``(3) Qualified contribution.--The term `qualified 
contribution' means a charitable contribution of cash to a 
scholarship granting organization that uses the contribution to 
fund scholarships for eligible students solely within the State 
in which the organization is listed pursuant to subsection (g).
``(4) Qualified elementary or secondary education expense.--
The term `qualified elementary or secondary education expense' 
means any expense of an eligible student which is described in 
section 530(b)(3)(A).

[[Page 139 STAT. 216]]

``(5) Scholarship granting organization.--The term 
`scholarship granting organization' means any organization--
``(A) which--
``(i) is described in section 501(c)(3) and 
exempt from tax under section 501(a), and
``(ii) is not a private foundation,
``(B) which prevents the co-mingling of qualified 
contributions with other amounts by maintaining one or 
more separate accounts exclusively for qualified 
contributions,
``(C) which satisfies the requirements of subsection 
(d), and
``(D) which is included on the list submitted for 
the applicable covered State under subsection (g) for 
the applicable year.

``(d) Requirements for Scholarship Granting Organizations.--
``(1) In general.--An organization meets the requirements of 
this subsection if--
``(A) such organization provides scholarships to 10 
or more students who do not all attend the same school,
``(B) such organization spends not less than 90 
percent of the income of the organization on 
scholarships for eligible students,
``(C) such organization does not provide 
scholarships for any expenses other than qualified 
elementary or secondary education expenses,
``(D) such organization provides a scholarship to 
eligible students with a priority for--
``(i) students awarded a scholarship the 
previous school year, and
``(ii) after application of clause (i), any 
eligible students who have a sibling who was 
awarded a scholarship from such organization,
``(E) such organization does not earmark or set 
aside contributions for scholarships on behalf of any 
particular student, and
``(F) such organization--
``(i) verifies the annual household income and 
family size of eligible students who apply for 
scholarships to ensure such students meet the 
requirement of subsection (c)(2)(A), and
``(ii) limits the awarding of scholarships to 
eligible students who are a member of a household 
for which the income does not exceed the amount 
established under subsection (c)(2)(A).
``(2) Prohibition on self-dealing.--
``(A) In general.--A scholarship granting 
organization may not award a scholarship to any 
disqualified person.
``(B) Disqualified person.--For purposes of this 
paragraph, a disqualified person shall be determined 
pursuant to rules similar to the rules of section 4946.

``(e) Denial of Double Benefit.--Any qualified contribution for 
which a credit is allowed under this section shall not be taken into 
account as a charitable contribution for purposes of section 170.
``(f) Carryforward of Unused Credit.--

[[Page 139 STAT. 217]]

``(1) In general.--If the credit allowable under subsection 
(a) for any taxable year exceeds the limitation imposed by 
section 26(a) for such taxable year reduced by the sum of the 
credits allowable under this subpart (other than this section, 
section 23, and section 25D), such excess shall be carried to 
the succeeding taxable year and added to the credit allowable 
under subsection (a) for such taxable year.
``(2) Limitation.--No credit may be carried forward under 
this subsection to any taxable year following the fifth taxable 
year after the taxable year in which the credit arose. For 
purposes of the preceding sentence, credits shall be treated as 
used on a first-in first-out basis.

``(g) State List of Scholarship Granting Organizations.--
``(1) List.--
``(A) <<NOTE: Deadlines.>> In general.--Not later 
than January 1 of each calendar year (or, with respect 
to the first calendar year for which this section 
applies, as early as practicable), a State that 
voluntarily elects to participate under this section 
shall provide to the Secretary a list of the scholarship 
granting organizations that meet the requirements 
described in subsection (c)(5) and are located in the 
State.
``(B) Process.--The election under this paragraph 
shall be made by the Governor of the State or by such 
other individual, agency, or entity as is designated 
under State law to make such elections on behalf of the 
State with respect to Federal tax benefits.
``(2) Certification.--Each list submitted under paragraph 
(1) shall include a certification that the individual, agency, 
or entity submitting such list on behalf of the State has the 
authority to perform this function.

``(h) Regulations and Guidance.--The Secretary shall issue such 
regulations or other guidance as the Secretary determines necessary to 
carry out the purposes of this section, including regulations or other 
guidance--
``(1) providing for enforcement of the requirements under 
subsections (d) and (g), and
``(2) with respect to recordkeeping or information reporting 
for purposes of administering the requirements of this 
section.''.
(2) Conforming amendments.--
(A) Section 25(e)(1)(C) is amended by striking ``and 
25D'' and inserting ``25D, and 25F''.
(B) The table of sections for subpart A of part IV 
of subchapter A of chapter 1 <<NOTE: 26 USC prec. 21.>> 
is amended by inserting after the item relating to 
section 25E the following new item:

``Sec. 25F. Qualified elementary and secondary education 
scholarships.''.

(b) Exclusion From Gross Income for Scholarships for Qualified 
Elementary or Secondary Education Expenses of Eligible Students.--
(1) In general.--Part III of subchapter B of chapter 1 is 
amended by inserting before section 140 the following new 
section:
``SEC. 139K. <<NOTE: 26 USC 139K.>> SCHOLARSHIPS FOR QUALIFIED 
ELEMENTARY OR SECONDARY EDUCATION 
EXPENSES OF ELIGIBLE STUDENTS.

``(a) In General.--In the case of an individual, gross income shall 
not include any amounts provided to such individual or any

[[Page 139 STAT. 218]]

dependent of such individual pursuant to a scholarship for qualified 
elementary or secondary education expenses of an eligible student which 
is provided by a scholarship granting organization.
``(b) Definitions.--In this section, the terms `qualified elementary 
or secondary education expense', `eligible student', and `scholarship 
granting organization' have the same meaning given such terms under 
section 25F(c).''.
(2) Conforming amendment.--The table of sections for part 
III of subchapter B of chapter 1 <<NOTE: 26 USC prec. 101.>> is 
amended by inserting before the item relating to section 140 the 
following new item:

``Sec. 139K. Scholarships for qualified elementary or secondary 
education expenses of eligible students.''.

(c) <<NOTE: 26 USC 25 note.>> Effective Date.--
(1) In general.--Except as otherwise provided in this 
subsection, the amendments made by this section shall apply to 
taxable years ending after December 31, 2026.
(2) Exclusion from gross income.--The amendments made by 
subsection (b) shall apply to amounts received after December 
31, 2026, in taxable years ending after such date.
SEC. 70412. EXCLUSION FOR EMPLOYER PAYMENTS OF STUDENT LOANS.

(a) In General.--Section 127(c)(1)(B) is amended by striking ``in 
the case of payments made before January 1, 2026,''.
(b) Inflation Adjustment.--Section 127 is amended--
(1) by redesignating subsection (d) as subsection (e), and
(2) by inserting after subsection (c) the following new 
subsection:

``(d) Inflation Adjustment.--
``(1) <<NOTE: Effective date.>> In general.--In the case of 
any taxable year beginning after 2026, both of the $5,250 
amounts in subsection (a)(2) shall each be increased by an 
amount equal to--
``(A) such dollar amount, multiplied by
``(B) <<NOTE: Determination.>> 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 2025' for 
`calendar year 2016' in subparagraph (A)(ii) thereof.
``(2) Rounding.--If any increase under paragraph (1) is not 
a multiple of $50, such increase shall be rounded to the nearest 
multiple of $50.''.

(c) <<NOTE: 26 USC 127 note.>> Effective Date.--The amendment made 
by this section shall apply to payments made after December 31, 2025.
SEC. 70413. ADDITIONAL EXPENSES TREATED AS QUALIFIED HIGHER 
EDUCATION EXPENSES FOR PURPOSES OF 529 
ACCOUNTS.

(a) In General.--
(1) In general.--Section 529(c)(7) is amended to read as 
follows:
``(7) Treatment of elementary and secondary tuition.--Any 
reference in this section <<NOTE: Definition.>> to the term 
`qualified higher education expense' shall include a reference 
to the following expenses in connection with enrollment or 
attendance at, or for students enrolled at or attending, an 
elementary or secondary public, private, or religious school:
``(A) Tuition.

[[Page 139 STAT. 219]]

``(B) Curriculum and curricular materials.
``(C) Books or other instructional materials.
``(D) Online educational materials.
``(E) Tuition for tutoring or educational classes 
outside of the home, including at a tutoring facility, 
but only if the tutor or instructor is not related to 
the student and--
``(i) is licensed as a teacher in any State,
``(ii) has taught at an eligible educational 
institution, or
``(iii) is a subject matter expert in the 
relevant subject.
``(F) Fees for a nationally standardized norm-
referenced achievement test, an advanced placement 
examination, or any examinations related to college or 
university admission.
``(G) Fees for dual enrollment in an institution of 
higher education.
``(H) Educational therapies for students with 
disabilities provided by a licensed or accredited 
practitioner or provider, including occupational, 
behavioral, physical, and speech-language therapies.''.
(2) <<NOTE: 26 USC 529 note.>> Effective date.--The 
amendment made by this subsection shall apply to distributions 
made after the date of the enactment of this Act.

(b) Increase in Limitation.--
(1) In general.--The last sentence of section 529(e)(3) is 
amended by striking ``$10,000'' and inserting ``$20,000''.
(2) <<NOTE: 26 USC 529 note.>> Effective date.--The 
amendment made by this subsection shall apply to taxable years 
beginning after December 31, 2025.
SEC. 70414. <<NOTE: Definitions.>> CERTAIN POSTSECONDARY 
CREDENTIALING EXPENSES TREATED AS 
QUALIFIED HIGHER EDUCATION EXPENSES 
FOR PURPOSES OF 529 ACCOUNTS.

(a) In General.--Section 529(e)(3) is amended by adding at the end 
the following new subparagraph:
``(C) Certain postsecondary credentialing 
expenses.--The term `qualified higher education 
expenses' includes qualified postsecondary credentialing 
expenses (as defined in subsection (f)).''.

(b) Qualified Postsecondary Credentialing Expenses.--Section 529 is 
amended by redesignating subsection (f) as subsection (g) and by 
inserting after subsection (e) the following new subsection:
``(f) Qualified Postsecondary Credentialing Expenses.--For purposes 
of this section--
``(1) In general.--The term `qualified postsecondary 
credentialing expenses' means--
``(A) tuition, fees, books, supplies, and equipment 
required for the enrollment or attendance of a 
designated beneficiary in a recognized postsecondary 
credential program, or any other expense incurred in 
connection with enrollment in or attendance at a 
recognized postsecondary credential program if such 
expense would, if incurred in connection with enrollment 
or attendance at an eligible educational institution, be 
covered under subsection (e)(3)(A),

[[Page 139 STAT. 220]]

``(B) fees for testing if such testing is required 
to obtain or maintain a recognized postsecondary 
credential, and
``(C) fees for continuing education if such 
education is required to maintain a recognized 
postsecondary credential.
``(2) Recognized postsecondary credential program.--The term 
`recognized postsecondary credential program' means any program 
to obtain a recognized postsecondary credential if--
``(A) such program is included on a State list 
prepared under section 122(d) of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3152(d)),
``(B) such program is listed in the public directory 
of the Web Enabled Approval Management System (WEAMS) of 
the Veterans Benefits Administration, or successor 
directory such program,
``(C) an examination (developed or administered by 
an organization widely recognized as providing reputable 
credentials in the occupation) is required to obtain or 
maintain such credential and such organization 
recognizes such program as providing training or 
education which prepares individuals to take such 
examination, or
``(D) such program is identified by the Secretary, 
after consultation with the Secretary of Labor, as being 
a reputable program for obtaining a recognized 
postsecondary credential for purposes of this 
subparagraph.
``(3) Recognized postsecondary credential.--The term 
`recognized postsecondary credential' means--
``(A) any postsecondary employment credential that 
is industry recognized and is--
``(i) any postsecondary employment credential 
issued by a program that is accredited by the 
Institute for Credentialing Excellence, the 
National Commission on Certifying Agencies, or the 
American National Standards Institute,
``(ii) any postsecondary employment credential 
that is included in the Credentialing 
Opportunities On-Line (COOL) directory of 
credentialing programs (or successor directory) 
maintained by the Department of Defense or by any 
branch of the Armed Forces, or
``(iii) any postsecondary employment 
credential identified for purposes of this clause 
by the Secretary, after consultation with the 
Secretary of Labor, as being industry recognized,
``(B) any certificate of completion of an 
apprenticeship that is registered and certified with the 
Secretary of Labor 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.),
``(C) any occupational or professional license 
issued or recognized by a State or the Federal 
Government (and any certification that satisfies a 
condition for obtaining such a license), and
``(D) any recognized postsecondary credential as 
defined in section 3(52) of the Workforce Innovation and 
Opportunity Act (29 U.S.C. 3102(52)), provided through a 
program described in paragraph (2)(A).''.

[[Page 139 STAT. 221]]

(c) <<NOTE: 26 USC 529 note.>> Effective Date.--The amendments made 
by this section shall apply to distributions made after the date of the 
enactment of this Act.
SEC. 70415. MODIFICATION OF EXCISE TAX ON INVESTMENT INCOME OF 
CERTAIN PRIVATE COLLEGES AND 
UNIVERSITIES.

(a) In General.--Section 4968 is amended to read as follows:
``SEC. 4968. EXCISE TAX BASED ON INVESTMENT INCOME OF PRIVATE 
COLLEGES AND UNIVERSITIES.

``(a) <<NOTE: Applicability. Definitions.>> Tax Imposed.--There is 
hereby imposed on each applicable educational institution for the 
taxable year a tax equal to the applicable percentage of the net 
investment income of such institution for the taxable year.

``(b) Applicable Percentage.--For purposes of this section, the term 
`applicable percentage' means--
``(1) 1.4 percent in the case of an institution with a 
student adjusted endowment of at least $500,000, and not in 
excess of $750,000,
``(2) 4 percent in the case of an institution with a student 
adjusted endowment in excess of $750,000, and not in excess of 
$2,000,000, and
``(3) 8 percent in the case of an institution with a student 
adjusted endowment in excess of $2,000,000.

``(c) Applicable Educational Institution.--For purposes of this 
subchapter, the term `applicable educational institution' means an 
eligible educational institution (as defined in section 25A(f)(2))--
``(1) which had at least 3,000 tuition-paying students 
during the preceding taxable year,
``(2) more than 50 percent of the tuition-paying students of 
which are located in the United States,
``(3) the student adjusted endowment of which is at least 
$500,000, and
``(4) which is not described in the first sentence of 
section 511(a)(2)(B) (relating to State colleges and 
universities).

``(d) Student Adjusted Endowment.--For purposes of this section, the 
term `student adjusted endowment' means, with respect to any institution 
for any taxable year--
``(1) the aggregate fair market value of the assets of such 
institution (determined as of the end of the preceding taxable 
year), other than those assets which are used directly in 
carrying out the institution's exempt purpose, divided by
``(2) the number of students of such institution.

``(e) Determination of Number of Students.--For purposes of 
subsections (c) and (d), the number of students of an institution 
(including for purposes of determining the number of students at a 
particular location) shall be based on the daily average number of full-
time students attending such institution (with part-time students taken 
into account on a full-time student equivalent basis).
``(f) Net Investment Income.--For purposes of this section--
``(1) In general.--Net investment income shall be determined 
under rules similar to the rules of section 4940(c).
``(2) Override of certain regulatory exceptions.--
``(A) Student loan interest.--Net investment income 
shall be determined by taking into account any interest 
income from a student loan made by the applicable 
educational institution (or any related organization) as 
gross investment income.

[[Page 139 STAT. 222]]

``(B) Federally-subsidized royalty income.--
``(i) In general.--Net investment income shall 
be determined by taking into account any 
Federally-subsidized royalty income as gross 
investment income.
``(ii) Federally-subsidized royalty income.--
For purposes of this subparagraph--
``(I) In general.--The term 
`Federally-subsidized royalty income' 
means any otherwise-regulatory-exempt 
royalty income if any Federal funds were 
used in the research, development, or 
creation of the patent, copyright, or 
other intellectual or intangible 
property from which such royalty income 
is derived.
``(II) Otherwise-regulatory-exempt 
royalty income.--For purposes of this 
subparagraph, the term `otherwise-
regulatory-exempt royalty income' means 
royalty income which (but for this 
subparagraph) would not be taken into 
account as gross investment income by 
reason of being derived from patents, 
copyrights, or other intellectual or 
intangible property which resulted from 
the work of students or faculty members 
in their capacities as such with the 
applicable educational institution.
``(III) Federal funds.--The term 
`Federal funds' includes any grant made 
by, and any payment made under any 
contract with, any Federal agency to the 
applicable educational institution, any 
related organization, or any student or 
faculty member referred to in subclause 
(II).

``(g) Assets and Net Investment Income of Related Organizations.--
``(1) In general.--For purposes of subsections (d) and (f), 
assets and net investment income of any related organization 
with respect to an educational institution shall be treated as 
assets and net investment income, respectively, of the 
educational institution, except that--
``(A) no such amount shall be taken into account 
with respect to more than 1 educational institution, and
``(B) unless such organization is controlled by such 
institution or is described in section 509(a)(3) with 
respect to such institution for the taxable year, assets 
and net investment income which are not intended or 
available for the use or benefit of the educational 
institution shall not be taken into account.
``(2) Related organization.--For purposes of this 
subsection, the term `related organization' means, with respect 
to an educational institution, any organization which--
``(A) controls, or is controlled by, such 
institution,
``(B) is controlled by 1 or more persons which also 
control such institution, or
``(C) is a supported organization (as defined in 
section 509(f)(3)), or an organization described in 
section 509(a)(3), during the taxable year with respect 
to such institution.

``(h) <<NOTE: Guidance.>> Regulations.--The Secretary shall 
prescribe such regulations or other guidance as may be necessary to 
prevent avoidance of the tax under this section, including regulations 
or other guidance

[[Page 139 STAT. 223]]

to prevent avoidance of such tax through the restructuring of endowment 
funds or other arrangements designed to reduce or eliminate the value of 
net investment income or assets subject to the tax imposed by this 
section.''.

(b) Requirement to Report Certain Information With Respect to 
Application of Excise Tax Based on Investment Income of Private Colleges 
and Universities.--Section 6033 is amended by redesignating subsection 
(o) as subsection (p) and by inserting after subsection (n) the 
following new subsection:
``(o) Requirement to Report Certain Information With Respect to 
Excise Tax Based on Investment Income of Private Colleges and 
Universities.--Each applicable educational institution described in 
section 4968(c) which is subject to the requirements of subsection (a) 
shall include on the return required under subsection (a)--
``(1) the number of tuition-paying students taken into 
account under section 4968(c), and
``(2) the number of students of such institution (determined 
under the rules of section 4968(e)).''.

(c) <<NOTE: 26 USC 4968 note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2025.
SEC. 70416. EXPANDING APPLICATION OF TAX ON EXCESS COMPENSATION 
WITHIN TAX-EXEMPT ORGANIZATIONS.

(a) In General.--Section 4960(c)(2) is amended to read as follows:
``(2) <<NOTE: Definition.>> Covered employee.--For purposes 
of this section, the term `covered employee' means any employee 
of an applicable tax-exempt organization (or any predecessor of 
such an organization) and any former employee of such an 
organization (or predecessor) who was such an employee during 
any taxable year beginning after December 31, 2016.''.

(b) <<NOTE: 26 USC 4960 note.>> Effective Date.--The amendment made 
by subsection (a) shall apply to taxable years beginning after December 
31, 2025.

Subchapter C--Permanent Investments in Community Development

SEC. 70421. PERMANENT RENEWAL AND ENHANCEMENT OF OPPORTUNITY 
ZONES.

(a) Decennial Designations.--
(1) Determination period.--Section 1400Z-1(c)(2)(B) is 
amended by striking ``beginning on the date of the enactment of 
the Tax Cuts and Jobs Act'' and inserting ``beginning on the 
decennial determination date''.
(2) Decennial determination date.--Section 1400Z-1(c)(2) is 
amended by adding at the end the following new subparagraph:
``(C) <<NOTE: Definition.>> Decennial determination 
date.--The term `decennial determination date' means--
``(i) July 1, 2026, and
``(ii) each July 1 of the year that is 10 
years after the preceding decennial determination 
date under this subparagraph.''.
(3) Repeal of special rule for puerto rico.--Section 1400Z-
1(b) is amended by striking paragraph (3).

[[Page 139 STAT. 224]]

(4) Limitation on number of designations.--Section 1400Z-
1(d)(1) is amended--
(A) in paragraph (1)--
(i) by striking ``and subsection (b)(3)'', and
(ii) by inserting ``during any period'' after 
``the number of population census tracts in a 
State that may be designated as qualified 
opportunity zones under this section'', and
(B) in paragraph (2), by inserting ``during any 
period'' before the period at the end.
(5) <<NOTE: 26 USC 1400Z-1 note.>> Effective dates.--
(A) In general.--Except as provided in subparagraph 
(B), the amendments made by this subsection shall take 
effect on the date of the enactment of this Act.
(B) Puerto rico.--The amendment made by paragraph 
(3) shall take effect on December 31, 2026.

(b) Qualification for Designations.--
(1) Determination of low-income communities.--Section 1400Z-
1(c) is amended by striking all that precedes paragraph (2) and 
inserting the following:

``(c) Other Definitions.--For purposes of this section--
``(1) Low-income communities.--The term `low-income 
community' means any population census tract if--
``(A) such population census tract has a median 
family income that--
``(i) in the case of a population census tract 
not located within a metropolitan area, does not 
exceed 70 percent of the statewide median family 
income, or
``(ii) in the case of a population census 
tract located within a metropolitan area, does not 
exceed 70 percent of the metropolitan area median 
family income, or
``(B) such population census tract--
``(i) has a poverty rate of at least 20 
percent, and
``(ii) has a median family income that--
``(I) in the case of a population 
census tract not located within a 
metropolitan area, does not exceed 125 
percent of the statewide median family 
income, or
``(II) in the case of a population 
census tract located within a 
metropolitan area, does not exceed 125 
percent of the metropolitan area median 
family income.''.
(2) Repeal of rule for contiguous census tracts.--Section 
1400Z-1 is amended by striking subsection (e) and by 
redesignating subsection (f) as subsection (e).
(3) Period for which designation is in effect.--Section 
1400Z-1(e), as redesignated by paragraph (2), is amended to read 
as follows:

``(e) Period for Which Designation Is in Effect.--
``(1) In general.--A designation as a qualified opportunity 
zone shall remain in effect for the period beginning on the 
applicable start date and ending on the day before the date that 
is 10 years after the applicable start date.
``(2) <<NOTE: Definition.>> Applicable start date.--For 
purposes of this section, the term `applicable start date' 
means, with respect to any qualified opportunity zone designated 
under this section, the

[[Page 139 STAT. 225]]

January 1 following the date on which such qualified opportunity 
zone was certified and designated by the Secretary under 
subsection (b)(1)(B).''.
(4) <<NOTE: 26 USC 1400Z-1 note.>> Effective date.--The 
amendments made by this subsection shall apply to areas 
designated under section 1400Z-1 of the Internal Revenue Code of 
1986 after the date of the enactment of this Act.

(c) Application of Special Rules for Capital Gains.--
(1) Repeal of sunset on election.--Section 1400Z-2(a)(2) is 
amended to read as follows:
``(2) Election.--No election may be made under paragraph (1) 
with respect to a sale or exchange if an election previously 
made with respect to such sale or exchange is in effect.''.
(2) Modification of rules for deferral of gain.--Section 
1400Z-2(b) is amended to read as follows:

``(b) Deferral of Gain Invested in Opportunity Zone Property.--
``(1) <<NOTE: Applicability.>> Year of inclusion.--Gain to 
which subsection (a)(1)(B) applies shall be included in gross 
income in the taxable year which includes the earlier of--
``(A) the date on which such investment is sold or 
exchanged, or
``(B) the date which is 5 years after the date the 
investment in the qualified opportunity fund was made.
``(2) Amount includible.--
``(A) In general.--The amount of gain included in 
gross income under subsection (a)(1)(B) shall be the 
excess of--
``(i) the lesser of the amount of gain 
excluded under subsection (a)(1)(A) or the fair 
market value of the investment as determined as of 
the date described in paragraph (1), over
``(ii) the taxpayer's basis in the investment.
``(B) Determination of basis.--
``(i) In general.--Except as otherwise 
provided in this subparagraph or subsection (c), 
the taxpayer's basis in the investment shall be 
zero.
``(ii) Increase for gain recognized under 
subsection (a)(1)(B).--The basis in the investment 
shall be increased by the amount of gain 
recognized by reason of subsection (a)(1)(B) with 
respect to such investment.
``(iii) Investments held for 5 years.--
``(I) In general.--In the case of 
any investment held for at least 5 
years, the basis of such investment 
shall be increased by an amount equal to 
10 percent (30 percent in the case of 
any investment in a qualified rural 
opportunity fund) of the amount of gain 
deferred by reason of subsection 
(a)(1)(A).
``(II) Application of increase.--For 
purposes of this subsection, any 
increase in basis under this clause 
shall be treated as occurring before the 
date described in paragraph (1)(B).
``(C) <<NOTE: Definitions.>> Qualified rural 
opportunity fund.--For purposes of subparagraph 
(B)(iii)--

[[Page 139 STAT. 226]]

``(i) Qualified rural opportunity fund.--The 
term `qualified rural opportunity fund' means a 
qualified opportunity fund that holds at least 90 
percent of its assets in qualified opportunity 
zone property which--
``(I) is qualified opportunity zone 
business property substantially all of 
the use of which, during substantially 
all of the fund's holding period for 
such property, was in a qualified 
opportunity zone comprised entirely of a 
rural area, or
``(II) is qualified opportunity zone 
stock, or a qualified opportunity zone 
partnership interest, in a qualified 
opportunity zone business in which 
substantially all of the tangible 
property owned or leased is qualified 
opportunity zone business property 
described in subsection (d)(3)(A)(i) and 
substantially all the use of which is in 
a qualified opportunity zone comprised 
entirely of a rural area.
For purposes of the preceding sentence, property 
held in the fund shall be measured under rules 
similar to the rules of subsection (d)(1).
``(ii) Rural area.--The term `rural area' 
means any area other than--
``(I) a city or town that has a 
population of greater than 50,000 
inhabitants, and
``(II) any urbanized area contiguous 
and adjacent to a city or town described 
in subclause (I).''.
(3) Special rule for investments held at least 10 years.--
Section 1400Z-2(c) is amended by striking ``makes an election 
under this clause'' and all that follows and inserting ``makes 
an election under this subsection, the basis of such investment 
shall be equal to--
``(A) in the case of an investment sold before the 
date that is 30 years after the date of the investment, 
the fair market value of such investment on the date 
such investment is sold or exchanged, or
``(B) in any other case, the fair market value of 
such investment on the date that is 30 years after the 
date of the investment.''.
(4) Determination of qualified opportunity zone property.--
(A) Qualified opportunity zone business property.--
Section 1400Z-2(d)(2)(D)(i)(I) is amended by striking 
``December 31, 2017'' and inserting ``the applicable 
start date (as defined in section 1400Z-1(e)(2)) with 
respect to the qualified opportunity zone described in 
subclause (III)''.
(B) Qualified opportunity zone stock and partnership 
interests.--Section 1400Z-2(d)(2) is amended--
(i) by striking ``December 31, 2017,'' each 
place it appears in subparagraphs (B)(i)(I) and 
(C)(i) and inserting ``the applicable date'', and
(ii) by adding at the end the following new 
subparagraph:
``(E) <<NOTE: Definition.>> Applicable date.--For 
purposes of this subparagraph, the term `applicable 
date' means, with respect to

[[Page 139 STAT. 227]]

any corporation or partnership which is a qualified 
opportunity zone business, the earliest date described 
in subparagraph (D)(i)(I) with respect to the qualified 
opportunity zone business property held by such 
qualified opportunity zone business.''.
(C) Special rule for improvement of existing 
structures in rural areas.--Section 1400Z-2(d)(2)(D)(ii) 
is amended by inserting ``(50 percent of such adjusted 
basis in the case of property in a qualified opportunity 
zone comprised entirely of a rural area (as defined in 
subsection (b)(2)(C)(ii))'' after ``the adjusted basis 
of such property''.
(5) <<NOTE: 26 USC 1400Z-2 note.>> Effective dates.--
(A) In general.--Except as otherwise provided in 
this paragraph, the amendments made by this subsection 
shall apply to amounts invested in qualified opportunity 
funds after December 31, 2026.
(B) Acquisition of qualified opportunity zone 
property.--The amendments made by subparagraphs (A) and 
(B) of paragraph (4) shall apply to property acquired 
after December 31, 2026.
(C) Substantial improvement.--The amendment made by 
paragraph (4)(C) shall take effect on the date of the 
enactment of this Act.

(d) Information Reporting on Qualified Opportunity Funds and 
Qualified Rural Opportunity Funds.--
(1) Filing requirements for funds and investors.--Subpart A 
of part III of subchapter A of chapter 61 is amended by 
inserting after section 6039J the following new sections:
``SEC. 6039K. <<NOTE: 26 USC 6039K.>> RETURNS WITH RESPECT TO 
QUALIFIED OPPORTUNITY FUNDS AND 
QUALIFIED RURAL OPPORTUNITY FUNDS.

``(a) In General.--Every qualified opportunity fund shall file an 
annual return (at such time and in such manner as the Secretary may 
prescribe) containing the information described in subsection (b).
``(b) Information From Qualified Opportunity Funds.--The information 
described in this subsection is--
``(1) the name, address, and taxpayer identification number 
of the qualified opportunity fund,
``(2) whether the qualified opportunity fund is organized as 
a corporation or a partnership,
``(3) the value of the total assets held by the qualified 
opportunity fund as of each date described in section 1400Z-
2(d)(1),
``(4) the value of all qualified opportunity zone property 
held by the qualified opportunity fund on each such date,
``(5) with respect to each investment held by the qualified 
opportunity fund in qualified opportunity zone stock or a 
qualified opportunity zone partnership interest--
``(A) the name, address, and taxpayer identification 
number of the corporation in which such stock is held or 
the partnership in which such interest is held, as the 
case may be,
``(B) each North American Industry Classification 
System (NAICS) code that applies to the trades or 
businesses conducted by such corporation or partnership,

[[Page 139 STAT. 228]]

``(C) the population census tract or population 
census tracts in which the qualified opportunity zone 
business property of such corporation or partnership is 
located,
``(D) the amount of the investment in such stock or 
partnership interest as of each date described in 
section 1400Z-2(d)(1),
``(E) the value of tangible property held by such 
corporation or partnership on each such date which is 
owned by such corporation or partnership,
``(F) the value of tangible property held by such 
corporation or partnership on each such date which is 
leased by such corporation or partnership,
``(G) the approximate number of residential units 
(if any) for any real property held by such corporation 
or partnership, and
``(H) the approximate average monthly number of 
full-time equivalent employees of such corporation or 
partnership for the year (within numerical ranges 
identified by the Secretary) or such other indication of 
the employment impact of such corporation or partnership 
as determined appropriate by the Secretary,
``(6) with respect to the items of qualified opportunity 
zone business property held by the qualified opportunity fund--
``(A) the North American Industry Classification 
System (NAICS) code that applies to the trades or 
businesses in which such property is held,
``(B) the population census tract in which the 
property is located,
``(C) whether the property is owned or leased,
``(D) the aggregate value of the items of qualified 
opportunity zone property held by the qualified 
opportunity fund as of each date described in section 
1400Z-2(d)(1), and
``(E) in the case of real property, the number of 
residential units (if any),
``(7) the approximate average monthly number of full-time 
equivalent employees for the year of the trades or businesses of 
the qualified opportunity fund in which qualified opportunity 
zone business property is held (within numerical ranges 
identified by the Secretary) or such other indication of the 
employment impact of such trades or businesses as determined 
appropriate by the Secretary,
``(8) with respect to each person who disposed of an 
investment in the qualified opportunity fund during the year--
``(A) the name, address, and taxpayer identification 
number of such person,
``(B) the date or dates on which the investment 
disposed was acquired, and
``(C) the date or dates on which any such investment 
was disposed and the amount of the investment disposed, 
and
``(9) such other information as the Secretary may require.

``(c) Statement Required to Be Furnished to Investors.--Every person 
required to make a return under subsection (a) shall furnish to each 
person whose name is required to be set forth in such return by reason 
of subsection (b)(8) (at such time and in such manner as the Secretary 
may prescribe) a written statement showing--

[[Page 139 STAT. 229]]

``(1) the name, address, and phone number of the information 
contact of the person required to make such return, and
``(2) the information required to be shown on such return by 
reason of subsection (b)(8) with respect to the person whose 
name is required to be so set forth.

``(d) Definitions.--For purposes of this section--
``(1) In general.--Any term used in this section which is 
also used in subchapter Z of chapter 1 shall have the meaning 
given such term under such subchapter.
``(2) Full-time equivalent employees.--The term `full-time 
equivalent employees' means, with respect to any month, the sum 
of--
``(A) the number of full-time employees (as defined 
in section 4980H(c)(4)) for the month, plus
``(B) the number of employees determined (under 
rules similar to the rules of section 4980H(c)(2)(E)) by 
dividing the aggregate number of hours of service of 
employees who are not full-time employees for the month 
by 120.

``(e) Application to Qualified Rural Opportunity Funds.--Every 
qualified rural opportunity fund (as defined in section 1400Z-
2(b)(2)(C)) shall file the annual return required under subsection (a), 
and the statements required under subsection (c), applied--
``(1) by substituting `qualified rural opportunity' for 
`qualified opportunity' each place it appears,
``(2) by substituting `section 1400Z-2(b)(2)(C)' for 
`section 1400Z-2(d)(1)' each place it appears, and
``(3) by treating any reference (after the application of 
paragraph (1)) to qualified rural opportunity zone stock, a 
qualified rural opportunity zone partnership interest, a 
qualified rural opportunity zone business, or qualified 
opportunity zone business property as stock, an interest, a 
business, or property, respectively, described in subclause (I) 
or (II), as the case may be, of section 1400Z-2(b)(2)(C)(i).
``SEC. 6039L. <<NOTE: 26 USC 6039L.>> INFORMATION REQUIRED FROM 
QUALIFIED OPPORTUNITY ZONE BUSINESSES 
AND QUALIFIED RURAL OPPORTUNITY ZONE 
BUSINESSES.

``(a) <<NOTE: Statement. Regulations.>> In General.--Every 
applicable qualified opportunity zone business shall furnish to the 
qualified opportunity fund described in subsection (b) a written 
statement at such time, in such manner, and setting forth such 
information as the Secretary may by regulations prescribe for purposes 
of enabling such qualified opportunity fund to meet the requirements of 
section 6039K(b)(5).

``(b) Applicable Qualified Opportunity Zone Business.--For 
purposes <<NOTE: Definition.>> of subsection (a), the term `applicable 
qualified opportunity zone business' means any qualified opportunity 
zone business--
``(1) which is a trade or business of a qualified 
opportunity fund,
``(2) in which a qualified opportunity fund holds qualified 
opportunity zone stock, or
``(3) in which a qualified opportunity fund holds a 
qualified opportunity zone partnership interest.

``(c) Other Terms.--Any term used in this section which is also used 
in subchapter Z of chapter 1 shall have the meaning given such term 
under such subchapter.

[[Page 139 STAT. 230]]

``(d) Application to Qualified Rural Opportunity 
Businesses. <<NOTE: Determination.>> --Every applicable qualified rural 
opportunity zone business (as defined in subsection (b) determined after 
application of the substitutions described in this sentence) shall 
furnish the written statement required under subsection (a), applied--
``(1) by substituting `qualified rural opportunity' for 
`qualified opportunity' each place it appears, and
``(2) by treating any reference (after the application of 
paragraph (1)) to qualified rural opportunity zone stock, a 
qualified rural opportunity zone partnership interest, or a 
qualified rural opportunity zone business as stock, an interest, 
or a business, respectively, described in subclause (I) or (II), 
as the case may be, of section 1400Z-2(b)(2)(C)(i).''.
(2) Penalties.--
(A) In general.--Part II of subchapter B of chapter 
68 is amended by inserting after section 6725 the 
following new section:
``SEC. 6726. <<NOTE: 26 USC 6726.>> FAILURE TO COMPLY WITH 
INFORMATION REPORTING REQUIREMENTS 
RELATING TO QUALIFIED OPPORTUNITY FUNDS 
AND QUALIFIED RURAL OPPORTUNITY FUNDS.

``(a) <<NOTE: Penalty.>> In General.--If any person required to file 
a return under section 6039K fails to file a complete and correct return 
under such section in the time and in the manner prescribed therefor, 
such person shall pay a penalty of $500 for each day during which such 
failure continues.

``(b) Limitation.--
``(1) In general.--The maximum penalty under this section on 
failures with respect to any 1 return shall not exceed $10,000.
``(2) Large qualified opportunity funds.--In the case of any 
failure described in subsection (a) with respect to a fund the 
gross assets of which (determined on the last day of the taxable 
year) are in excess of $10,000,000, paragraph (1) shall be 
applied by substituting `$50,000' for `$10,000'.

``(c) <<NOTE: Applicability.>> Penalty in Cases of Intentional 
Disregard.--If a failure described in subsection (a) is due to 
intentional disregard, then--
``(1) subsection (a) shall be applied by substituting 
`$2,500' for `$500',
``(2) subsection (b)(1) shall be applied by substituting 
`$50,000' for `$10,000', and
``(3) subsection (b)(2) shall be applied by substituting 
`$250,000' for `$50,000'.

``(d) Inflation Adjustment.--
``(1) <<NOTE: Effective date.>> In general.--In the case of 
any failure relating to a return required to be filed in a 
calendar year beginning after 2025, each of the dollar amounts 
in subsections (a), (b), and (c) shall be increased by an amount 
equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined under 
section 1(f)(3) for the calendar year determined by 
substituting `calendar year 2024' for `calendar year 
2016' in subparagraph (A)(ii) thereof.
``(2) Rounding.--
``(A) In general.--If the $500 dollar amount in 
subsection (a) and (c)(1) or the $2,500 amount in 
subsection (c)(1), after being increased under paragraph 
(1), is not

[[Page 139 STAT. 231]]

a multiple of $10, such dollar amount shall be rounded 
to the next lowest multiple of $10.
``(B) Asset threshold.--If the $10,000,000 dollar 
amount in subsection (b)(2), after being increased under 
paragraph (1), is not a multiple of $10,000, such dollar 
amount shall be rounded to the next lowest multiple of 
$10,000.
``(C) Other dollar amounts.--If any dollar amount in 
subsection (b) or (c) (other than any amount to which 
subparagraph (A) or (B) applies), after being increased 
under paragraph (1), is not a multiple of $1,000, such 
dollar amount shall be rounded to the next lowest 
multiple of $1,000.''.
(B) Information required to be sent to other 
taxpayers.--Section 6724(d)(2), as amended by the 
preceding provisions of this Act, is amended--
(i) by striking ``or'' at the end of 
subparagraph (LL),
(ii) by striking the period at the end of 
subparagraph (MM) and inserting a comma, and
(iii) by inserting after subparagraph (MM) the 
following new subparagraphs:
``(NN) section 6039K(c) (relating to disposition of 
qualified opportunity fund investments), or
``(OO) section 6039L (relating to information 
required from certain qualified opportunity zone 
businesses and qualified rural opportunity zone 
businesses).''.
(3) Electronic filing.--Section 6011(e) is amended by adding 
at the end the following new paragraph:
``(8) Qualified opportunity funds and qualified rural 
opportunity funds.--Notwithstanding paragraphs (1) and (2), any 
return filed by a qualified opportunity fund or qualified rural 
opportunity fund under section 6039K shall be filed on magnetic 
media or other machine-readable form.''.
(4) Clerical amendments.--
(A) The table of sections for subpart A of part III 
of subchapter A of chapter 61 <<NOTE: 26 USC prec. 
6031.>> is amended by inserting after the item relating 
to section 6039J the following new items:

``Sec. 6039K. Returns with respect to qualified opportunity funds and 
qualified rural opportunity funds.
``Sec. 6039L. Information required from qualified opportunity zone 
businesses and qualified rural opportunity zone 
businesses.''.

(B) The table of sections for part II of subchapter 
B of chapter 68 is amended <<NOTE: 26 USC prec. 
6721.>> by inserting after the item relating to section 
6725 the following new item:

``Sec. 6726. Failure to comply with information reporting requirements 
relating to qualified opportunity funds and qualified rural 
opportunity funds.''.

(5) <<NOTE: 26 USC 6011 note.>> Effective date.--The 
amendments made by this subsection shall apply to taxable years 
beginning after the date of the enactment of this Act.

(e) <<NOTE: 26 USC 6039K note.>> Secretary Reporting of Data on 
Opportunity Zone and Rural Opportunity Zone Tax Incentives.--
(1) <<NOTE: Appropriation authorization. Expiration 
date.>> In general.--In addition to amounts otherwise available, 
there is appropriated, out of any money in the Treasury not 
otherwise appropriated, $15,000,000, to remain available until 
September 30, 2028, for necessary expenses of the Internal

[[Page 139 STAT. 232]]

Revenue Service to make the reports described in paragraph (2).
(2) Reports.--As soon as practical after the date of the 
enactment of this Act, and annually thereafter, the Secretary of 
the Treasury, or the Secretary's delegate (referred to in this 
section as the ``Secretary'') shall make publicly available a 
report on qualified opportunity funds.
(3) Information included.--The report required under 
paragraph (2) shall include, to the extent available, the 
following information:
(A) The number of qualified opportunity funds.
(B) The aggregate dollar amount of assets held in 
qualified opportunity funds.
(C) The aggregate dollar amount of investments made 
by qualified opportunity funds in qualified opportunity 
fund property, stated separately for each North American 
Industry Classification System (NAICS) code.
(D) The percentage of population census tracts 
designated as qualified opportunity zones that have 
received qualified opportunity fund investments.
(E) For each population census tract designated as a 
qualified opportunity zone, the approximate average 
monthly number of full-time equivalent employees of the 
qualified opportunity zone businesses in such qualified 
opportunity zone for the preceding 12-month period 
(within numerical ranges identified by the Secretary) or 
such other indication of the employment impact of such 
qualified opportunity fund businesses as determined 
appropriate by the Secretary.
(F) The percentage of the total amount of 
investments made by qualified opportunity funds in--
(i) qualified opportunity zone property which 
is real property; and
(ii) other qualified opportunity zone 
property.
(G) For each population census tract, the aggregate 
approximate number of residential units resulting from 
investments made by qualified opportunity funds in real 
property.
(H) The aggregate dollar amount of investments made 
by qualified opportunity funds in each population census 
tract.
(4) Additional information.--
(A) <<NOTE: Effective date.>> In general.--Beginning 
with the report submitted under paragraph (2) for the 
6th year after the date of the enactment of this Act, 
the Secretary shall include in such report the impacts 
and outcomes of a designation of a population census 
tract as a qualified opportunity zone as measured by 
economic indicators, such as job creation, poverty 
reduction, new business starts, and other metrics as 
determined by the Secretary.
(B) Semi-decennial information.--
(i) In general.--In the case of any report 
submitted under paragraph (2) in the 6th year or 
the 11th year after the date of the enactment of 
this Act, the Secretary shall include the 
following information:
(I) For population census tracts 
designated as a qualified opportunity 
zone, a comparison (based

[[Page 139 STAT. 233]]

on aggregate information) of the factors 
listed in clause (iii) between the 5-
year period ending on the date of the 
enactment of Public Law 115-97 and the 
most recent 5-year period for which data 
is available.
(II) For population census tracts 
designated as a qualified opportunity 
zone, a comparison (based on aggregate 
information) of the factors listed in 
clause (iii) for the most recent 5-year 
period for which data is available 
between such population census tracts 
and similar population census tracts 
that were not designated as a qualified 
opportunity zone.
(ii) Control groups.--For purposes of clause 
(i), the Secretary may combine population census 
tracts into such groups as the Secretary 
determines appropriate for purposes of making 
comparisons.
(iii) Factors listed.--The factors listed in 
this clause are the following:
(I) The unemployment rate.
(II) The number of persons working 
in the population census tract, 
including the percentage of such persons 
who were not residents in the population 
census tract in the preceding year.
(III) Individual, family, and 
household poverty rates.
(IV) Median family income of 
residents of the population census 
tract.
(V) Demographic information on 
residents of the population census 
tract, including age, income, education, 
race, and employment.
(VI) The average percentage of 
income of residents of the population 
census tract spent on rent annually.
(VII) The number of residences in 
the population census tract.
(VIII) The rate of home ownership in 
the population census tract.
(IX) The average value of 
residential property in the population 
census tract.
(X) The number of affordable housing 
units in the population census tract.
(XI) The number of new business 
starts in the population census tract.
(XII) The distribution of employees 
in the population census tract by North 
American Industry Classification System 
(NAICS) code.
(5) Protection of identifiable return information.--In 
making reports required under this subsection, the Secretary--
(A) <<NOTE: Procedures.>> shall establish 
appropriate procedures to ensure that any amounts 
reported do not disclose taxpayer return information 
that can be associated with any particular taxpayer or 
competitive or proprietary information, and

[[Page 139 STAT. 234]]

(B) if necessary to protect taxpayer return 
information, may combine information required with 
respect to individual population census tracts into 
larger geographic areas.
(6) Definitions.--Any term used in this subsection which is 
also used in subchapter Z of chapter 1 of the Internal Revenue 
Code of 1986 shall have the meaning given such term under such 
subchapter.
(7) Reports on qualified rural opportunity funds.--The 
Secretary shall make publicly available, with respect to 
qualified rural opportunity funds, separate reports as required 
under this subsection, applied--
(A) by substituting ``qualified rural opportunity'' 
for ``qualified opportunity'' each place it appears,
(B) by substituting a reference to this Act for 
``Public Law 115-97'', and
(C) by treating any reference (after the application 
of subparagraph (A)) to qualified rural opportunity zone 
stock, qualified rural opportunity zone partnership 
interest, qualified rural opportunity zone business, or 
qualified opportunity zone business property as stock, 
interest, business, or property, respectively, described 
in subclause (I) or (II), as the case may be, of section 
1400Z-2(b)(2)(C)(i) of the Internal Revenue Code of 
1986.
SEC. 70422. PERMANENT ENHANCEMENT OF LOW-INCOME HOUSING TAX 
CREDIT.

(a) Permanent State Housing Credit Ceiling Increase for Low-income 
Housing Credit.--
(1) In general.--Section 42(h)(3)(I) is amended--
(A) by striking ``2018, 2019, 2020, and 2021,'' and 
inserting ``beginning after December 31, 2025,'',
(B) by striking ``1.125'' and inserting ``1.12'', 
and
(C) by striking ``2018, 2019, 2020, and 2021'' in 
the heading and inserting ``calendar years after 2025''.
(2) <<NOTE: 26 USC 42 note.>> Effective date.--The 
amendments made by this subsection shall apply to calendar years 
beginning after December 31, 2025.

(b) Tax-exempt Bond Financing Requirement.--
(1) In general.--Section 42(h)(4) is amended by striking 
subparagraph (B) and inserting the following:
``(B) Special rule where minimum percent of 
buildings is financed with tax-exempt bonds subject to 
volume cap.--For purposes of subparagraph (A), paragraph 
(1) shall not apply to any portion of the credit 
allowable under subsection (a) with respect to a 
building if--
``(i) 50 percent or more of the aggregate 
basis of such building and the land on which the 
building is located is financed by 1 or more 
obligations described in subparagraph (A), or
``(ii)(I) 25 percent or more of the aggregate 
basis of such building and the land on which the 
building is located is financed by 1 or more 
obligations described in subparagraph (A), and
``(II) 1 or more of such obligations--
``(aa) are part of an issue the 
issue date of which is after December 
31, 2025, and

[[Page 139 STAT. 235]]

``(bb) provide the financing for not 
less than 5 percent of the aggregate 
basis of such building and the land on 
which the building is located.''.
(2) <<NOTE: 26 USC 42 note.>> Effective date.--
(A) In general.--The amendment made by this 
subsection shall apply to buildings placed in service in 
taxable years beginning after December 31, 2025.
(B) Rehabilitation expenditures treated as separate 
new building.--In the case of any building with respect 
to which any expenditures are treated as a separate new 
building under section 42(e) of the Internal Revenue 
Code of 1986, for purposes of subparagraph (A), both the 
existing building and the separate new building shall be 
treated as having been placed in service on the date 
such expenditures are treated as placed in service under 
section 42(e)(4) of such Code.
SEC. 70423. PERMANENT EXTENSION OF NEW MARKETS TAX CREDIT.

(a) In General.--Section 45D(f)(1)(H) is amended by striking ``for 
for each of calendar years 2020 through 2025'' and inserting `` for each 
calendar year after 2019''.
(b) Carryover of Unused Limitation.--Section 45D(f)(3) is amended--
(1) by striking ``If the'' and inserting the following:
``(A) In general.--If the'', and
(2) by striking the second sentence and inserting the 
following:
``(B) Limitation.--No amount may be carried under 
subparagraph (A) to any calendar year afer the fifth 
calendar year after the calendar year in which the 
excess described in such subparagraph occurred. For 
purposes of this subparagraph, any excess described in 
subparagraph (A) with respect to any calendar year 
before 2026 shall be treated as occurring in calendar 
year 2025.''.

(c) <<NOTE: 26 USC 45D note.>> Effective Date.--The amendments made 
by this section shall apply to calendar years beginning after December 
31, 2025.
SEC. 70424. PERMANENT AND EXPANDED REINSTATEMENT OF PARTIAL 
DEDUCTION FOR CHARITABLE CONTRIBUTIONS 
OF INDIVIDUALS WHO DO NOT ELECT TO 
ITEMIZE.

(a) In General.--Section 170(p) is amended--
(1) by striking ``$300 ($600'' and inserting ``$1,000 
($2,000'', and
(2) by striking ``beginning in 2021''.

(b) <<NOTE: 26 USC 170 note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2025.
SEC. 70425. 0.5 PERCENT FLOOR ON DEDUCTION OF CONTRIBUTIONS MADE 
BY INDIVIDUALS.

(a) In General.--
(1) In general.--Paragraph (1) of section 170(b) is amended 
by adding at the end the following new subparagraph:
``(I) 0.5-percent floor.--Any charitable 
contribution otherwise allowable (without regard to this 
subparagraph) as a deduction under this section shall be 
allowed only to the extent that the aggregate of such 
contributions exceeds 0.5 percent of the taxpayer's 
contribution base

[[Page 139 STAT. 236]]

for the taxable year. <<NOTE: Applicability.>> The 
preceding sentence shall be applied--
``(i) first, by taking into account charitable 
contributions to which subparagraph (D) applies to 
the extent thereof,
``(ii) second, by taking into account 
charitable contributions to which subparagraph (C) 
applies to the extent thereof,
``(iii) third, by taking into account 
charitable contributions to which subparagraph (B) 
applies to the extent thereof,
``(iv) fourth, by taking into account 
charitable contributions to which subparagraph (E) 
applies to the extent thereof,
``(v) fifth, by taking into account charitable 
contributions to which subparagraph (A) applies to 
the extent thereof, and
``(vi) sixth, by taking into account 
charitable contributions to which subparagraph (G) 
applies to the extent thereof.''.
(2) Application of carryforward.--Paragraph (1) of section 
170(d) is amended by adding at the end the following new 
subparagraph:
``(C) <<NOTE: Definitions.>> Contributions 
disallowed by 0.5-percent floor carried forward only 
from years in which limitation is exceeded.--
``(i) In general.--In the case of any taxable 
year from which an excess is carried forward 
(determined without regard to this subparagraph) 
under any carryover rule, the applicable carryover 
rule shall be applied by increasing the excess 
determined under such applicable carryover rule 
for the contribution year (before the application 
of subparagraph (B)) by the amount attributable to 
the charitable contributions to which such rule 
applies which is not allowed as a deduction for 
the contribution year by reason of subsection 
(b)(1)(I).
``(ii) Carryover rule.--For purposes of this 
subparagraph, the term `carryover rule' means--
``(I) subparagraph (A) of this 
paragraph,
``(II) subparagraphs (C)(ii), 
(D)(ii), (E)(ii), and (G)(ii) of 
subsection (b)(1), and
``(III) the second sentence of 
subsection (b)(1)(B).
``(iii) Applicable carryover rule.--For 
purposes of this subparagraph, the term 
`applicable carryover rule' means any carryover 
rule applicable to charitable contributions which 
were (in whole or in part) not allowed as a 
deduction for the contribution year by reason of 
subsection (b)(1)(I).''.
(3) Coordination with deduction for nonitemizers.--Section 
170(p), as amended by this Act, is further amended by inserting 
``, (b)(1)(I),'' after ``subsections (b)(1)(G)(ii)''.

(b) Modification of Limitation for Cash Contributions.--
(1) In general.--Clause (i) of section 170(b)(1)(G) is 
amended to read as follows:

[[Page 139 STAT. 237]]

``(i) <<NOTE: Effective date.>> In general.--
For taxable years beginning after December 31, 
2017, any contribution of cash to an organization 
described in subparagraph (A) shall be allowed as 
a deduction under subsection (a) to the extent 
that the aggregate of such contributions does not 
exceed the excess of--
``(I) 60 percent of the taxpayer's 
contribution base for the taxable year, 
over
``(II) the aggregate amount of 
contributions taken into account under 
subparagraph (A) for such taxable 
year.''.
(2) Coordination with other limitations.--
(A) In general.--Clause (iii) of section 
170(b)(1)(G) is amended--
(i) by striking ``subparagraphs (a) and (b)'' 
in the heading and inserting ``subparagraph (a)'', 
and
(ii) in subclause (II), by striking ``, and 
subparagraph (B)'' and all that follows through 
``this subparagraph''.
(B) Other contributions.--Subparagraph (B) of 
section 170(b)(1) is amended--
(i) by striking ``to which subparagraph (A)'' 
both places it appears and inserting ``to which 
subparagraph (A) or (G)'', and
(ii) in clause (ii), by striking ``over the 
amount'' and all that follows through 
``subparagraph (C)).'' and inserting ``over--
``(I) the amount of charitable 
contributions allowable under 
subparagraph (A) (determined without 
regard to subparagraph (C)) and 
subparagraph (G), reduced by
``(II) so much of the contributions 
taken into account under subparagraph 
(G) as does not exceed 10 percent of the 
taxpayer's contribution base.''.

(c) <<NOTE: 26 USC 170 note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2025.
SEC. 70426. 1-PERCENT FLOOR ON DEDUCTION OF CHARITABLE 
CONTRIBUTIONS MADE BY CORPORATIONS.

(a) In General.--Section 170(b)(2)(A) is amended to read as follows:
``(A) In general.--Any charitable contribution 
otherwise allowable (without regard to this 
subparagraph) as a deduction under this section for any 
taxable year, other than any contribution to which 
subparagraph (B) or (C) applies, shall be allowed only 
to the extent that the aggregate of such contributions--
``(i) exceeds 1 percent of the taxpayer's 
taxable income for the taxable year, and
``(ii) does not exceed 10 percent of the 
taxpayer's taxable income for the taxable year.''.

(b) Application of Carryforward.--Section 170(d)(2) is amended to 
read as follows:
``(2) Corporations.--
``(A) In general.--Any charitable contribution taken 
into account under subsection (b)(2)(A) for any taxable 
year which is not allowed as a deduction by reason of

[[Page 139 STAT. 238]]

clause (ii) thereof shall be taken into account as a 
charitable contribution for the succeeding taxable year, 
except that, for purposes of determining under this 
subparagraph whether such contribution is allowed in 
such succeeding taxable year, contributions in such 
succeeding taxable year (determined without regard to 
this paragraph) shall be taken into account under 
subsection (b)(2)(A) before any contribution taken into 
account by reason of this paragraph.
``(B) 5-year carryforward.--No charitable 
contribution may be carried forward under subparagraph 
(A) to any taxable year following the fifth taxable year 
after the taxable year in which the charitable 
contribution was first taken into account. For purposes 
of the preceding sentence, contributions shall be 
treated as allowed on a first-in first-out basis.
``(C) Contributions disallowed by 1-percent floor 
carried forward only from years in which 10 percent 
limitation is exceeded.--In the case of any taxable year 
from which a charitable contribution is carried forward 
under subparagraph (A) (determined without regard this 
subparagraph), subparagraph (A) shall be applied by 
substituting `clause (i) or (ii)' for `clause (ii)'.
``(D) Special rule for net operating loss 
carryovers. <<NOTE: Reduction.>> --The amount of 
charitable contributions carried forward under 
subparagraph (A) shall be reduced to the extent that 
such carryfoward would (but for this subparagraph) 
reduce taxable income (as computed for purposes of the 
second sentence of section 172(b)(2)) and increase a net 
operating loss carryover under section 172 to a 
succeeding taxable year.''.

(c) Conforming Amendments.--Subparagraphs (B)(ii) and (C)(ii) of 
section 170(b)(2) are each amended by inserting ``other than 
subparagraph (C) thereof'' after ``subsection (d)(2)''.
(d) <<NOTE: 26 USC 170 note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2025.
SEC. 70427. PERMANENT INCREASE IN LIMITATION ON COVER OVER OF TAX 
ON DISTILLED SPIRITS.

(a) In General.--Paragraph (1) of section 7652(f) is amended to read 
as follows:
``(1) $13.25, or''.

(b) <<NOTE: 26 USC 7652 note.>> Effective Date.--The amendment made 
by this section shall apply to distilled spirits brought into the United 
States after December 31, 2025.
SEC. 70428. <<NOTE: Alaska. Fish and fishing. 26 USC 501 
note.>> NONPROFIT COMMUNITY 
DEVELOPMENT ACTIVITIES IN REMOTE 
NATIVE VILLAGES.

(a) In General.--For purposes of subchapter F of chapter 1 of the 
Internal Revenue Code of 1986, any activity substantially related to 
participation or investment in fisheries in the Bering Sea and Aleutian 
Islands statistical and reporting areas (as described in Figure 1 of 
section 679 of title 50, Code of Federal Regulations) carried on by an 
entity identified in section 305(i)(1)(D) of the Magnuson-Stevens 
Fishery Conservation and Management Act (16 U.S.C. 1855(i)(1)(D)) (as in 
effect on the date of enactment of this section) shall be considered 
substantially related to the exercise or performance of the purpose 
constituting the basis of such entity's exemption under section 501(a) 
of such Code if the

[[Page 139 STAT. 239]]

conduct of such activity is in furtherance of 1 or more of the purposes 
specified in section 305(i)(1)(A) of such Act (as so in effect). For 
purposes of this paragraph, activities substantially related to 
participation or investment in fisheries include the harvesting, 
processing, transportation, sales, and marketing of fish and fish 
products of the Bering Sea and Aleutian Islands statistical and 
reporting areas.
(b) Application to Certain Wholly Owned Subsidiaries.--If 
the <<NOTE: Deadline.>> assets of a trade or business relating to an 
activity described in subsection (a) of any subsidiary wholly owned by 
an entity identified in section 305(i)(1)(D) of the Magnuson-Stevens 
Fishery Conservation and Management Act (16 U.S.C. 1855(i)(1)(D)) (as in 
effect on the date of enactment of this section) are transferred to such 
entity (including in liquidation of such subsidiary) not later than 18 
months after the date of the enactment of this Act--
(1) no gain or income resulting from such transfer shall be 
recognized to either such subsidiary or such entity under such 
Code, and
(2) all income derived from such subsidiary from such 
transferred trade or business shall be exempt from taxation 
under such Code.

(c) Effective Date.--This section shall take effect on the date of 
the enactment of this Act and shall remain effective during the 
existence of the western Alaska community development quota program 
established by Section 305(i)(1) of the Magnuson-Stevens Fishery 
Conservation and Management Act (16 U.S.C. 1855(i)(1)), as amended.
SEC. 70429. ADJUSTMENT OF CHARITABLE DEDUCTION FOR CERTAIN 
EXPENSES INCURRED IN SUPPORT OF NATIVE 
ALASKAN SUBSISTENCE WHALING.

(a) In General.--Section 170(n)(1) of the Internal Revenue Code of 
1986 is amended by striking ``$10,000'' and inserting ``$50,000''.
(b) <<NOTE: 26 USC 170 note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2025.
SEC. 70430. EXCEPTION TO PERCENTAGE OF COMPLETION METHOD OF 
ACCOUNTING FOR CERTAIN RESIDENTIAL 
CONSTRUCTION CONTRACTS.

(a) In General.--Section 460(e) is amended--
(1) in paragraph (1)--
(A) by striking ``home construction contract'' both 
places it appears and inserting ``residential 
construction contract'', and
(B) by inserting ``(determined by substituting `3-
year' for `2-year' in subparagraph (B)(i) for any 
residential construction contract which is not a home 
construction contract)'' after ``the requirements of 
clauses (i) and (ii) of subparagraph (B)'',
(2) by striking paragraph (4) and redesignating paragraph 
(5) as paragraph (4), and
(3) in subparagraph (A) of paragraph (4), as so 
redesignated, by striking ``paragraph (4)'' and inserting 
``paragraph (3)''.

(b) Application of Exception for Purposes of Alternative Minimum 
Tax.--Section 56(a)(3) is amended by striking ``any home construction 
contract (as defined in section 460(e)(6))'' and inserting

[[Page 139 STAT. 240]]

``any residential construction contract (as defined in section 
460(e)(4))''.
(c) <<NOTE: 26 USC 56 note.>> Effective Date.--The amendments made 
by this section shall apply to contracts entered into in taxable years 
beginning after the date of the enactment of this Act.

Subchapter D--Permanent Investments in Small Business and Rural America

SEC. 70431. EXPANSION OF QUALIFIED SMALL BUSINESS STOCK GAIN 
EXCLUSION.

(a) Phased Increase in Exclusion for Gain From Qualified Small 
Business Stock.--
(1) In general.--Section 1202(a)(1) is amended to read as 
follows:
``(1) <<NOTE: Time periods.>> In general.-- In the case of a 
taxpayer other than a corporation, gross income shall not 
include--
``(A) except as provided in paragraphs (3) and (4), 
50 percent of any gain from the sale or exchange of 
qualified small business stock acquired on or before the 
applicable date and held for more than 5 years, and
``(B) the applicable percentage of any gain from the 
sale or exchange of qualified small business stock 
acquired after the applicable date and held for at least 
3 years.''.
(2) Applicable percentage.--Section 1202(a) is amended by 
adding at the end the following new paragraph:
``(5) Applicable percentage.--The applicable percentage 
under paragraph (1) shall be determined under the following 
table:

Applicable
``Years stock held: percentage:

3 years................................................ 50%
4 years................................................ 75%
5 years or more........................................ 100%''.

''. (3) Applicable date; acquisition date.--Section 1202(a), 
as amended by paragraph (2), is amended by adding at the end the 
following new paragraph:
``(6) Applicable date; acquisition date.--For purposes of 
this section--
``(A) <<NOTE: Definition.>> Applicable date.--The 
term `applicable date' means the date of the enactment 
of this paragraph.
``(B) Acquisition date.--In the case of any stock 
which would (but for this paragraph) be treated as 
having been acquired before, on, or after the applicable 
date, whichever is applicable, the acquisition date for 
purposes of this section shall be the first day on which 
such stock was held by the taxpayer determined after the 
application of section 1223.''.
(4) Continued treatment as not item of tax preference.--
(A) In general.--Section 57(a)(7) is amended by 
striking ``An amount'' and inserting ``In the case of 
stock

[[Page 139 STAT. 241]]

acquired on or before the date of the enactment of the 
Creating Small Business Jobs Act of 2010, an amount''.
(B) Conforming amendment.--Section 1202(a)(4) is 
amended--
(i) by striking ``, and'' at the end of 
subparagraph (B) and inserting a period, and
(ii) by striking subparagraph (C).
(5) Other conforming amendments.--
(A) Paragraphs (3)(A) and (4)(A) of section 1202(a) 
are each amended by striking ``paragraph (1)'' and 
inserting ``paragraph (1)(A)''.
(B) Paragraph (4)(A) of section 1202(a) is amended 
by inserting ``and on or before the applicable date'' 
after ``2010''.
(C) Sections 1202(b)(2), 1202(g)(2)(A), and 
1202(j)(1)(A) are each amended by striking ``more than 5 
years'' and inserting ``at least 3 years (more than 5 
years in the case of stock acquired on or before the 
applicable date)''.
(6) <<NOTE: 26 USC 57 note.>> Effective dates.--
(A) In general.--Except as provided in subparagraph 
(B), the amendments made by this subsection shall apply 
to taxable years beginning after the date of the 
enactment of this Act.
(B) Continued treatment as not item of tax 
preference.--The amendments made by paragraph (4) shall 
take effect as if included in the enactment of section 
2011 of the Creating Small Business Jobs Act of 2010.

(b) Increase in Per Issuer Limitation.--
(1) In general.--Subparagraph (A) of section 1202(b)(1) is 
amended to read as follows:
``(A) the applicable dollar limit for the taxable 
year, or''.
(2) Applicable dollar limit.--Section 1202 (b) is amended by 
adding at the end the following:
``(4) Applicable dollar limit.--For purposes of paragraph 
(1)(A), the applicable dollar limit for any taxable year with 
respect to eligible gain from 1 or more dispositions by a 
taxpayer of qualified business stock of a corporation is--
``(A) if such stock was acquired by the taxpayer on 
or before the applicable date, $10,000,000, reduced by 
the aggregate amount of eligible gain taken into account 
by the taxpayer under subsection (a) for prior taxable 
years and attributable to dispositions of stock issued 
by such corporation and acquired by the taxpayer before, 
on, or after the applicable date, and
``(B) if such stock was acquired by the taxpayer 
after the applicable date, $15,000,000, reduced by the 
sum of--
``(i) the aggregate amount of eligible gain 
taken into account by the taxpayer under 
subsection (a) for prior taxable years and 
attributable to dispositions of stock issued by 
such corporation and acquired by the taxpayer 
before, on, or after the applicable date, plus
``(ii) the aggregate amount of eligible gain 
taken into account by the taxpayer under 
subsection (a) for the taxable year and 
attributable to dispositions of

[[Page 139 STAT. 242]]

stock issued by such corporation and acquired by 
the taxpayer on or before the applicable date.
``(5) Inflation adjustment.--
``(A) <<NOTE: Effective date.>> In general.--In the 
case of any taxable year beginning after 2026, the 
$15,000,000 amount in paragraph (4)(B) 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 2025' for `calendar 
year 2016' in subparagraph (A)(ii) thereof.
If any increase under this subparagraph is not a 
multiple of $10,000, such increase shall be rounded to 
the nearest multiple of $10,000.
``(B) No increase once limit reached.--If, for any 
taxable year, the eligible gain attributable to 
dispositions of stock issued by a corporation and 
acquired by the taxpayer after the applicable date 
exceeds the applicable dollar limit, then 
notwithstanding any increase under subparagraph (A) for 
any subsequent taxable year, the applicable dollar limit 
for such subsequent taxable year shall be zero.''.
(3) Separate returns.--Subparagraph (A) of section 
1202(b)(3) is amended to read as follows:
``(A) <<NOTE: Applicability.>> Separate returns.--In 
the case of a separate return by a married individual 
for any taxable year--
``(i) paragraph (4)(A) shall be applied by 
substituting `$5,000,000' for `$10,000,000', and
``(ii) paragraph (4)(B) shall be applied by 
substituting one-half of the dollar amount in 
effect under such paragraph for the taxable year 
for the amount so in effect.''.
<<NOTE: 26 USC 1202 note.>> (4) Effective date.--The 
amendments made by this subsection shall apply to taxable years 
beginning after the date of the enactment of this Act.

(c) Increase in Limit in Aggregate Gross Assets.--
(1) In general.--Subparagraphs (A) and (B) of section 
1202(d)(1) are each amended by striking ``$50,000,000'' and 
inserting ``$75,000,000''.
(2) Inflation adjustment.--Section 1202(b) is amended by 
adding at the end the following:
``(4) <<NOTE: Effective date.>> Inflation adjustment.--In 
the case of any taxable year beginning after 2026, the 
$75,000,000 amounts in paragraphs (1)(A) and (1)(B) shall each 
be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) 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 2025' for `calendar year 2016' in 
subparagraph (A)(ii) thereof.
If any increase under this paragraph is not a multiple of 
$10,000, such increase shall be rounded to the nearest multiple 
of $10,000.''.
(3) <<NOTE: 26 USC 1202 note.>> Effective date.--The 
amendments made by this subsection shall apply to stock issued 
after the date of the enactment of this Act.

[[Page 139 STAT. 243]]

SEC. 70432. REPEAL OF REVISION TO DE MINIMIS RULES FOR THIRD PARTY 
NETWORK TRANSACTIONS.

(a) Reinstatement of Exception for De Minimis Payments as in Effect 
Prior to Enactment of American Rescue Plan Act of 2021.--
(1) In general.--Section 6050W(e) is amended to read as 
follows:

``(e) Exception for De Minimis Payments by Third Party Settlement 
Organizations.--A <<NOTE: Reports.>> third party settlement organization 
shall be required to report any information under subsection (a) with 
respect to third party network transactions of any participating payee 
only if--
``(1) the amount which would otherwise be reported under 
subsection (a)(2) with respect to such transactions exceeds 
$20,000, and
``(2) the aggregate number of such transactions exceeds 
200.''.
(2) <<NOTE: 26 USC 6050W note.>> Effective date.--The 
amendment made by this subsection shall take effect as if 
included in section 9674 of the American Rescue Plan Act.

(b) Application of De Minimis Rule for Third Party Network 
Transactions to Backup Withholding.--
(1) In general.--Section 3406(b) is amended by adding at the 
end the following new paragraph:
``(8) Other reportable payments include payments in 
settlement of third party network transactions only where 
aggregate transactions exceed reporting threshold for the 
calendar year.--
``(A) In general.--Any payment in settlement of a 
third party network transaction required to be shown on 
a return required under section 6050W which is made 
during any calendar year shall be treated as a 
reportable payment only if--
``(i) the aggregate number of transactions 
with respect to the participating payee during 
such calendar year exceeds the number of 
transactions specified in section 6050W(e)(2), and
``(ii) the aggregate amount of transactions 
with respect to the participating payee during 
such calendar year exceeds the dollar amount 
specified in section 6050W(e)(1) at the time of 
such payment.
``(B) Exception if third party network transactions 
made in prior year were reportable.--Subparagraph (A) 
shall not apply with respect to payments to any 
participating payee during any calendar year if one or 
more payments in settlement of third party network 
transactions made by the payor to the participating 
payee during the preceding calendar year were reportable 
payments.''.
(2) <<NOTE: 26 USC 3406 note.>> Effective date.--The 
amendment made by this subsection shall apply to calendar years 
beginning after December 31, 2024.
SEC. 70433. INCREASE IN THRESHOLD FOR REQUIRING INFORMATION 
REPORTING WITH RESPECT TO CERTAIN 
PAYEES.

(a) In General.--Section 6041(a) is amended by striking ``$600'' and 
inserting ``$2,000''.

[[Page 139 STAT. 244]]

(b) Inflation Adjustment.--Section 6041 is amended by adding at the 
end the following new subsection:
``(h) Inflation Adjustment.--In the case of any calendar year after 
2026, the dollar amount in subsection (a) shall be increased by an 
amount equal to--
``(1) such dollar amount, multiplied by
``(2) the cost-of-living adjustment determined under section 
1(f)(3) for such calendar year, determined by substituting 
`calendar year 2025' for `calendar year 2016' in subparagraph 
(A)(ii) thereof.

If any increase under the preceding sentence is not a multiple of $100, 
such increase shall be rounded to the nearest multiple of $100.''.
(c) Application to Reporting on Remuneration for Services.--Section 
6041A(a)(2) is amended by striking ``is $600 or more'' and inserting 
``equals or exceeds the dollar amount in effect for such calendar year 
under section 6041(a)''.
(d) Application to Backup Withholding.--Section 3406(b)(6) is 
amended--
(1) by striking ``$600'' in subparagraph (A) and inserting 
``the dollar amount in effect for such calendar year under 
section 6041(a)'', and
(2) by striking ``Only Where Aggregate for Calendar Year Is 
$600 or More'' in the heading and inserting ``Only Where in 
Excess of Threshold''.

(e) Conforming Amendments.--
(1) The heading of section 6041(a) is amended by striking 
``of $600 or More'' and inserting ``Exceeding Threshold''.
(2) Section 6041(a) is amended by striking ``taxable year'' 
and inserting ``calendar year''.

(f) <<NOTE: 26 USC 3406 note.>> Effective Date.--The amendments made 
by this section shall apply with respect to payments made after December 
31, 2025.
SEC. 70434. TREATMENT OF CERTAIN QUALIFIED SOUND RECORDING 
PRODUCTIONS.

(a) Election to Treat Costs as Expenses.--Section 181(a)(1) is 
amended by striking ``qualified film or television production, and any 
qualified live theatrical production,'' and inserting ``qualified film 
or television production, any qualified live theatrical production, and 
any qualified sound recording production''.
(b) Dollar Limitation.--Section 181(a)(2) is amended by adding at 
the end the following new subparagraph:
``(C) Qualified sound recording production.--
Paragraph (1) shall not apply to so much of the 
aggregate cost of any qualified sound recording 
production, or to so much of the aggregate, cumulative 
cost of all such qualified sound recording productions 
in the taxable year, as exceeds $150,000.''.

(c) No Other Deduction or Amortization Deduction Allowable.--Section 
181(b) is amended by striking ``qualified film or television production 
or any qualified live theatrical production'' and inserting ``qualified 
film or television production, any qualified live theatrical production, 
or any qualified sound recording production''.
(d) Election.--Section 181(c)(1) is amended by striking ``qualified 
film or television production or any qualified live theatrical

[[Page 139 STAT. 245]]

production'' and inserting ``qualified film or television production, 
any qualified live theatrical production, or any qualified sound 
recording production''.
(e) Qualified Sound Recording Production Defined.--Section 181 is 
amended by redesignating subsections (f) and (g) as subsections (g) and 
(h), respectively, and by inserting after subsection (e) the following 
new subsection:
``(f) Qualified Sound Recording Production.--For purposes of this 
section, the term `qualified sound recording production' means a sound 
recording (as defined in section 101 of title 17, United States Code) 
produced and recorded in the United States.''.
(f) Application of Termination.--Section 181(h), as redesignated by 
subsection (e), is amended by striking ``qualified film and television 
productions or qualified live theatrical productions'' and inserting 
``qualified film and television productions, qualified live theatrical 
productions, or qualified sound recording productions''.
(g) Bonus Depreciation.--
(1) Qualified sound recording production as qualified 
property.--Section 168(k)(2)(A)(i) is amended--
(A) by striking ``or'' at the end of subclause (IV), 
by inserting ``or'' at the end of subclause (V), and by 
inserting after subclause (V) the following:
``(VI) which is a qualified sound 
recording production (as defined in 
subsection (f) of section 181) for which 
a deduction would have been allowable 
under section 181 without regard to 
subsections (a)(2) and (h) of such 
section or this subsection, and'', and
(B) in subclauses (IV) and (V) (as so amended) by 
striking ``without regard to subsections (a)(2) and 
(g)'' both places it appears and inserting ``without 
regard to subsections (a)(2) and (h)''.
(2) Production placed in service.--Section 168(k)(2)(H) is 
amended by striking ``and'' at the end of clause (i), by 
striking the period at the end of clause (ii) and inserting ``, 
and'', and by adding after clause (ii) the following:
``(iii) a qualified sound recording production 
shall be considered to be placed in service at the 
time of initial release or broadcast.''.

(h) Conforming Amendments.--
(1) The heading for section 181 is amended to read as 
follows: ``treatment of certain qualified productions.''.
(2) The table of sections for part VI of subchapter B of 
chapter 1 is amended <<NOTE: 26 USC prec. 161.>> by striking the 
item relating to section 181 and inserting the following new 
item:

``Sec. 181. Treatment of certain qualified productions.''.

(i) <<NOTE: 26 USC 168 note.>> Effective Date.--The amendments made 
by this section shall apply to productions commencing in taxable years 
ending after the date of the enactment of this Act.
SEC. 70435. EXCLUSION OF INTEREST ON LOANS SECURED BY RURAL OR 
AGRICULTURAL REAL PROPERTY.

(a) In General.--Part III of subchapter B of chapter 1, as amended 
by the preceding provisions of this Act, is amended by inserting after 
section 139K the following new section:

[[Page 139 STAT. 246]]

``SEC. 139L. <<NOTE: Definitions. 26 USC 139L.>> INTEREST ON LOANS 
SECURED BY RURAL OR AGRICULTURAL REAL 
PROPERTY.

``(a) In General.--Gross income shall not include 25 percent of the 
interest received by a qualified lender on any qualified real estate 
loan.
``(b) Qualified Lender.--For purposes of this section, the term 
`qualified lender' means--
``(1) any bank or savings association the deposits of which 
are insured under the Federal Deposit Insurance Act (12 U.S.C. 
1811 et seq.),
``(2) any State- or federally-regulated insurance company,
``(3) any entity wholly owned, directly or indirectly, by a 
company that is treated as a bank holding company for purposes 
of section 8 of the International Banking Act of 1978 (12 U.S.C. 
3106) if--
``(A) such entity is organized, incorporated, or 
established under the laws of the United States or any 
State, and
``(B) the principal place of business of such entity 
is in the United States (including any territory of the 
United States),
``(4) any entity wholly owned, directly or indirectly, by a 
company that is considered an insurance holding company under 
the laws of any State if such entity satisfies the requirements 
described in subparagraphs (A) and (B) of paragraph (3), and
``(5) with respect to interest received on a qualified real 
estate loan secured by real estate described in subsection 
(c)(3)(A), any federally chartered instrumentality of the United 
States established under section 8.1(a) of the Farm Credit Act 
of 1971 (12 U.S.C. 2279aa-1(a)).

``(c) Qualified Real Estate Loan.--For purposes of this section--
``(1) In general.--The term `qualified real estate loan' 
means any loan--
``(A) secured by--
``(i) rural or agricultural real estate, or
``(ii) a leasehold mortgage (with a status as 
a lien) on rural or agricultural real estate,
``(B) made to a person other than a specified 
foreign entity (as defined in section 7701(a)(51)), and
``(C) made after the date of the enactment of this 
section.
For purposes of the preceding sentence, the determination of 
whether property securing such loan is rural or agricultural 
real estate shall be made as of the time the interest income on 
such loan is accrued.
``(2) Refinancings.--For purposes of subparagraphs (A) and 
(C) of paragraph (1), a loan shall not be treated as made after 
the date of the enactment of this section to the extent that the 
proceeds of such loan are used to refinance a loan which was 
made on or before the date of the enactment of this section (or, 
in the case of any series of refinancings, the original loan was 
made on or before such date).
``(3) Rural or agricultural real estate.--The term `rural or 
agricultural real estate' means--

[[Page 139 STAT. 247]]

``(A) any real property which is substantially used 
for the production of one or more agricultural products,
``(B) any real property which is substantially used 
in the trade or business of fishing or seafood 
processing, and
``(C) any aquaculture facility.
Such term shall not include any property which is not located in 
a State or a possession of the United States.
``(4) Aquaculture facility.--The term `aquaculture facility' 
means any land, structure, or other appurtenance that is used 
for aquaculture (including any hatchery, rearing pond, raceway, 
pen, or incubator).

``(d) <<NOTE: Applicability.>> Coordination With Section 265.--In 
the case of any qualified real estate loan, section 265 shall be 
applied--
``(1) by treating any qualified real estate loan for 
purposes of subsection (a)(2) thereof as an obligation the 
interest on which is wholly exempt from the taxes imposed by 
this subtitle,
``(2) by substituting `25 percent of the interest on 
indebtedness' for `Interest on indebtedness' in such subsection 
(a)(2),
``(3) by treating 25 percent of the adjusted basis of any 
qualified real estate loan as adjusted basis of a tax-exempt 
obligation described in subsection (b)(4)(B) thereof, and
``(4) by substituting `25 percent of the amount of such 
indebtedness' for `the amount of such indebtedness' in 
subsection (b)(6)(A)(a)(ii) thereof.''.

(b) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1, as amended by the preceding provisions of 
this Act, is <<NOTE: 26 USC prec. 101>> amended by inserting after the 
item relating to section 139K the following new item:

``Sec. 139L. Interest on loans secured by rural or agricultural real 
property.''.

(c) Effective Date.-- <<NOTE: 26 USC 139L note.>> The amendments 
made by this section shall apply to taxable years ending after the date 
of the enactment of this Act.
SEC. 70436. REDUCTION OF TRANSFER AND MANUFACTURING TAXES FOR 
CERTAIN DEVICES.

(a) Transfer Tax.--Section 5811(a) is amended to read as follows:
``(a) Rate.--There shall be levied, collected, and paid on firearms 
transferred a tax at the rate of--
``(1) $200 for each firearm transferred in the case of a 
machinegun or a destructive device, and
``(2) $0 for any firearm transferred which is not described 
in paragraph (1).''.

(b) Making Tax.--Section 5821(a) is amended to read as follows:
``(a) Rate.--There shall be levied, collected, and paid upon the 
making of a firearm a tax at the rate of--
``(1) $200 for each firearm made in the case of a machinegun 
or a destructive device, and
``(2) $0 for any firearm made which is not described in 
paragraph (1).''.

(c) Conforming Amendment.--Section 4182(a) is amended by adding at 
the end the following: ``For purposes of the preceding sentence, any 
firearm described in section 5811(a)(2) shall be deemed to be a firearm 
on which the tax provided by section 5811 has been paid.''

[[Page 139 STAT. 248]]

(d) <<NOTE: 26 USC 4182 note.>> Effective Date.--The amendments 
made by this section shall apply to calendar quarters beginning more 
than 90 days after the date of the enactment of this Act.
SEC. 70437. TREATMENT OF CAPITAL GAINS FROM THE SALE OF CERTAIN 
FARMLAND PROPERTY.

(a) In General.--Part IV of subchapter O of chapter 1 is amended by 
redesignating section 1062 as section 1063 and by inserting after 
section 1061 the following new section:
``SEC. 1062. <<NOTE: 26 USC 1062 note.>> GAIN FROM THE SALE OR 
EXCHANGE OF QUALIFIED FARMLAND PROPERTY 
TO QUALIFIED FARMERS.

``(a) Election to Pay Tax in Installments.--In the case of gain from 
the sale or exchange of qualified farmland property to a qualified 
farmer, at the election of the taxpayer, the portion of the net income 
tax of such taxpayer for the taxable year of the sale or exchange which 
is equal to the applicable net tax liability shall be paid in 4 equal 
installments.
``(b) Rules Relating to Installment Payments.--
``(1) Date for payment of installments.--If an election is 
made under subsection (a), the first installment shall be paid 
on the due date (determined without regard to any extension of 
time for filing the return) for the return of tax for the 
taxable year in which the sale or exchange occurs and each 
succeeding installment shall be paid on the due date (as so 
determined) for the return of tax for the taxable year following 
the taxable year with respect to which the preceding installment 
was made.
``(2) Acceleration of payment.--
``(A) In general.--If there is an addition to tax 
for failure to timely pay any installment required under 
this section, then the unpaid portion of all remaining 
installments shall be due on the date of such failure.
``(B) Individuals.--In the case of an individual, if 
the individual dies, then the unpaid portion of all 
remaining installment shall be paid on the due date for 
the return of tax for the taxable year in which the 
taxpayer dies.
``(C) C corporations.--In the case of a taxpayer 
which is a C corporation, trust, or estate, if there is 
a liquidation or sale of substantially all the assets of 
the taxpayer (including in a title 11 or similar case), 
a cessation of business by the taxpayer (in the case of 
a C corporation), or any similar circumstance, then the 
unpaid portion of all remaining installments shall be 
due on the date of such event (or in the case of a title 
11 or similar case, the day before the petition is 
filed). <<NOTE: Contracts.>> The preceding sentence 
shall not apply to the sale of substantially all the 
assets of a taxpayer to a buyer if such buyer enters 
into an agreement with the Secretary under which such 
buyer is liable for the remaining installments due under 
this subsection in the same manner as if such buyer were 
the taxpayer.
``(3) Proration of deficiency to installments.--If an 
election is made under subsection (a) to pay the applicable net 
tax liability in installments and a deficiency has been assessed 
with respect to such applicable net tax liability, the 
deficiency shall be prorated to the installments payable under 
subsection (a). The part of the deficiency so prorated to any

[[Page 139 STAT. 249]]

installment the date for payment of which has not arrived shall 
be collected at the same time as, and as a part of, such 
installment. <<NOTE: Notice.>> The part of the deficiency so 
prorated to any installment the date for payment of which has 
arrived shall be paid upon notice and demand from the Secretary. 
This section shall not apply if the deficiency is due to 
negligence, to intentional disregard of rules and regulations, 
or to fraud with intent to evade tax.

``(c) Election.--
``(1) <<NOTE: Deadline.>> In general.--Any election under 
subsection (a) shall be made not later than the due date for the 
return of tax for the taxable year described in subsection (a).
``(2) Partnerships and s corporations.--In the case of a 
sale or exchange described in subsection (a) by a partnership or 
S corporation, the election under subsection (a) shall be made 
at the partner or 
shareholder <<NOTE: Regulations. Guidance.>> level. The 
Secretary may prescribe such regulations or other guidance as 
necessary to carry out the purposes of this paragraph.

``(d) Definitions.--For purposes of this section--
``(1) Applicable net tax liability.--
``(A) In general.--The applicable net tax liability 
with respect to the sale or exchange of any property 
described in subsection (a) is the excess (if any) of--
``(i) such taxpayer's net income tax for the 
taxable year, over
``(ii) such taxpayer's net income tax for such 
taxable year determined without regard to any gain 
recognized from the sale or exchange of such 
property.
``(B) Net income tax.--The term `net income tax' 
means the regular tax liability reduced by the credits 
allowed under subparts A, B, and D of part IV of 
subchapter A.
``(2) Qualified farmland property.--
``(A) In general.--The term `qualified farmland 
property' means real property located in the United 
States--
``(i) which--
``(I) has been used by the taxpayer 
as a farm for farming purposes, or
``(II) leased by the taxpayer to a 
qualified farmer for farming purposes,
during substantially all of the 10-year period 
ending on the date of the qualified sale or 
exchange, and
``(ii) which is subject to a covenant or other 
legally enforceable restriction which prohibits 
the use of such property other than as a farm for 
farming purposes for any period before the date 
that is 10 years after the date of the sale or 
exchange described in subsection (a).
For purposes of clause (i), property which is used or 
leased by a partnership or S corporation in a manner 
described in such clause shall be treated as used or 
leased in such manner by each person who holds a direct 
or indirect interest in such partnership or S 
corporation.
``(B) Farm; farming purposes.--The terms `farm' and 
`farming purposes' have the respective meanings given 
such terms under section 2032A(e).

[[Page 139 STAT. 250]]

``(3) Qualified farmer.--The term `qualified farmer' means 
any individual who is actively engaged in farming (within the 
meaning of subsections

[Text truncated for length — see the official source above for the complete bill.]