US Codex
Pub. L.
Notes

Division H — Revenue Provisions

117th Congress · Approved Nov 15, 2021 · 135 Stat. 429 · Lineage

DIVISION H Revenue Provisions

TITLE I Highway Trust Fund

SEC. 80101. Extension of Highway Trust Fund Expenditure Authority.

(a)
Highway Trust Fund.— Section 9503 of the Internal Revenue Code of 1986 is amended—
(1)
by striking “ October 1, 2021” in subsections (b)(6)(B), (c)(1), and (e)(3) and inserting “ October 1, 2026”, and
(2)
by striking “ Continuing Appropriations Act, 2021 and Other Extensions Act” in subsections (c)(1) and (e)(3) and inserting “ Infrastructure Investment and Jobs Act”.
(b)
Sport Fish Restoration and Boating Trust Fund.— Section 9504 of such Code is amended—
(1)
by striking “ Continuing Appropriations Act, 2021 and Other Extensions Act” each place it appears in subsection (b)(2) and inserting “ Infrastructure Investment and Jobs Act”, and
(2)
by striking “ October 1, 2021” in subsection (d)(2) and inserting “ October 1, 2026”.
(c)
Leaking Underground Storage Tank Trust Fund.— Section 9508(e)(2) of such Code is amended by striking “ October 1, 2021” and inserting “ October 1, 2026”.

SEC. 80102. Extension of Highway-Related Taxes.

(a)
In General.—
(1)
Each of the following provisions of the Internal Revenue Code of 1986 is amended by striking “ September 30, 2022” and inserting “ September 30, 2028”:
(A)
Section 4041(a)(1)(C)(iii)(I).
(B)
Section 4041(m)(1)(B).
(C)
Section 4081(d)(1).
(2)
Each of the following provisions of such Code is amended by striking “ October 1, 2022” and inserting “ October 1, 2028”:
(A)
Section 4041(m)(1)(A).
(B)
Section 4051(c).
(C)
Section 4071(d).
(D)
Section 4081(d)(3).
(b)
Extension of Tax, etc., on Use of Certain Heavy Vehicles.— Each of the following provisions of the Internal Revenue Code of 1986 is amended by striking “ 2023” each place it appears and inserting “ 2029”:
(1)
Section 4481(f).
(2)
Subsections (c)(4) and (d) of section 4482.
(c)
Floor Stocks Refunds.— Section 6412(a)(1) of the Internal Revenue Code of 1986 is amended—
(1)
by striking “ October 1, 2022” each place it appears and inserting “ October 1, 2028”;
(2)
by striking “ March 31, 2023” each place it appears and inserting “ March 31, 2029”; and
(3)
by striking “ January 1, 2023” and inserting “ January 1, 2029”.
(d)
Extension of Certain Exemptions.—
(1)
Section 4221(a) of the Internal Revenue Code of 1986 is amended by striking “ October 1, 2022” and inserting “ October 1, 2028”.
(2)
Section 4483(i) of such Code is amended by striking “ October 1, 2023” and inserting “ October 1, 2029”.
(e)
Extension of Transfers of Certain Taxes.—
(1)
In general.— Section 9503 of the Internal Revenue Code of 1986 is amended—
(A)
in subsection (b)—
(i)
by striking “ October 1, 2022” each place it appears in paragraphs (1) and (2) and inserting “ October 1, 2028”;
(ii)
by striking “ October 1, 2022” in the heading of paragraph (2) and inserting “ October 1, 2028”;
(iii)
by striking “ September 30, 2022” in paragraph (2) and inserting “ September 30, 2028”; and
(iv)
by striking “ July 1, 2023” in paragraph (2) and inserting “ July 1, 2029”; and
(B)
in subsection (c)(2), by striking “ July 1, 2023” and inserting “ July 1, 2029”.
(2)
Motorboat and small-engine fuel tax transfers.—
(A)
In general.— Paragraphs (3)(A)(i) and (4)(A) of section 9503(c) of such Code are each amended by striking “ October 1, 2022” and inserting “ October 1, 2028”.
(B)
Conforming amendments to land and water conservation fund.— Section 200310 of title 54, United States Code, is amended—
(i)
by striking “ October 1, 2023” each place it appears and inserting “ October 1, 2029”; and
(ii)
by striking “ October 1, 2022” and inserting “ October 1, 2028”.
(f)
Effective Date.— The amendments made by this section shall take effect on October 1, 2021.

SEC. 80103. Further Additional Transfers to Trust Fund.

Subsection (f) of section 9503 of the Internal Revenue Code of 1986 is amended by redesignating paragraph (11) as paragraph (12) and inserting after paragraph (10) the following new paragraph:

“(11) Further transfers to trust fund.—Out of money in the Treasury not otherwise appropriated, there is hereby appropriated—

“(A) $90,000,000,000 to the Highway Account (as defined in subsection (e)(5)(B)) in the Highway Trust Fund; and

“(B) $28,000,000,000 to the Mass Transit Account in the Highway Trust Fund.”

TITLE II Chemical Superfund

SEC. 80201. Extension and Modification of Certain Superfund Excise Taxes.

(a)
Extension.—
(1)
In general.— Section 4661(c) of the Internal Revenue Code of 1986 is amended to read as follows:

“(c) Termination.—No tax shall be imposed by this section after December 31, 2031.”

(2)
Imported substances.— Section 4671(e) of the Internal Revenue Code of 1986 is amended to read as follows:

“(e) Termination.—No tax shall be imposed by this section after December 31, 2031.”

(b)
Modification of Rates.—
(1)
In general.— Section 4661(b) of the Internal Revenue Code of 1986 is amended to read as follows:

“(b) Amount of Tax.—The amount of tax imposed by subsection (a) shall be determined in accordance with the following table:

“In the case of: The tax is the following amount per ton:
Acetylene $9.74
Benzene 9.74
Butane 9.74
Butylene 9.74
Butadiene 9.74
Ethylene 9.74
Methane 6.88
Napthalene 9.74
Propylene 9.74
Toluene 9.74
Xylene 9.74
Ammonia 5.28
Antimony 8.90
Antimony trioxide 7.50
Arsenic 8.90
Arsenic trioxide 6.82
Barium sulfide 4.60
Bromine 8.90
Cadmium 8.90
Chlorine 5.40
Chromium 8.90
Chromite 3.04
Potassium dichromate 3.38
Sodium dichromate 3.74
Cobalt 8.90
Cupric sulfate 3.74
Cupric oxide 7.18
Cuprous oxide 7.94
Hydrochloric acid 0.58
Hydrogen fluoride 8.46
Lead oxide 8.28
Mercury 8.90
Nickel 8.90
Phosphorus 8.90
Stannous chloride 5.70
Stannic chloride 4.24
Zinc chloride 4.44
Zinc sulfate 3.80
Potassium hydroxide 0.44
Sodium hydroxide 0.56
Sulfuric acid 0.52
Nitric acid 0.48.”.
(2)
Rate on taxable substances where importer does not furnish information to the secretary.— Section 4671(b)(2) of such Code is amended by striking “ 5 percent” and inserting “ 10 percent”.
(c)
Rules Relating to Taxable Substances.—
(1)
Modification of determination of taxable substances.— Section 4672(a)(2)(B) of the Internal Revenue Code of 1986 is amended by striking “ 50 percent” each place it appears and inserting “ 20 percent”.
(2)
Presumption as a taxable substance for prior determinations.— Except as otherwise determined by the Secretary of the Treasury (or the Secretary’s delegate), any substance which was determined to be a taxable substance by reason of section 4672(a)(2) of the Internal Revenue Code of 1986 prior to the date of enactment of this Act shall continue to be treated as a taxable substance for purposes of such section after such date.
(3)
Publication of initial list.— Not later than January 1, 2022, the Secretary of the Treasury (or the Secretary’s delegate) shall publish an initial list of taxable substances under section 4672(a) of the Internal Revenue Code of 1986.
(d)
Effective Date.— The amendments made by this section shall take effect on July 1, 2022.

TITLE III Customs User Fees

SEC. 80301. Extension of Customs User Fees.

(a)
In General.— Section 13031(j)(3) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) is amended—
(1)
in subparagraph (A), by striking “ September 30, 2030” and inserting “ September 30, 2031”; and
(2)
in subparagraph (B)(i), by striking “ September 30, 2030” and inserting “ September 30, 2031”.
(b)
Rate for Merchandise Processing Fees.— Section 503 of the United States-Korea Free Trade Agreement Implementation Act (Public Law 112–41; 19 U.S.C. 3805 note) is amended by striking “ September 30, 2030” and inserting “ September 30, 2031”.

TITLE IV Bond Provisions

SEC. 80401. Private Activity Bonds for Qualified Broadband Projects.

(a)
In General.— Section 142(a) of the Internal Revenue Code of 1986 is amended by striking “ or” at the end of paragraph (14), by striking the period at the end of paragraph (15) and inserting “ , or”, and by adding at the end the following new paragraph:

“(16) qualified broadband projects.”

(b)
Qualified Broadband Projects.— Section 142 of such Code is amended by adding at the end the following new subsection:

“(n) Qualified Broadband Project.—

“(1) In general.—For purposes of subsection (a)(16), the term ‘qualified broadband project’ means any project which—

“(A) is designed to provide broadband service solely to 1 or more census block groups in which more than 50 percent of residential households do not have access to fixed, terrestrial broadband service which delivers at least 25 megabits per second downstream and at least 3 megabits service upstream, and

“(B) results in internet access to residential locations, commercial locations, or a combination of residential and commercial locations at speeds not less than 100 megabits per second for downloads and 20 megabits for second for uploads, but only if at least 90 percent of the locations provided such access under the project are locations where, before the project, a broadband service provider—

“(i) did not provide service, or

“(ii) did not provide service meeting the minimum speed requirements described in subparagraph (A).

“(2) Notice to broadband providers.—A project shall not be treated as a qualified broadband project unless, before the issue date of any issue the proceeds of which are to be used to fund the project, the issuer—

“(A) notifies each broadband service provider providing broadband service in the area within which broadband services are to be provided under the project of the project and its intended scope,

“(B) includes in such notice a request for information from each such provider with respect to the provider’s ability to deploy, manage, and maintain a broadband network capable of providing gigabit capable Internet access to residential or commercial locations, and

“(C) allows each such provider at least 90 days to respond to such notice and request.”

(c)
Partial Exception From Volume Cap.—
(1)
In general.— Section 146(g) of the Internal Revenue Code of 1986 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 inserting immediately after paragraph (4) the following new paragraph:

“(5) 75 percent of any exempt facility bond issued as part of an issue described in paragraph (16) of section 142(a) (relating to qualified broadband projects).”

(2)
Government-owned projects.— The last sentence of section 146(g) of such Code is amended by striking “ Paragraph (4)” and inserting “ Paragraphs (4) and (5)”.
(d)
Effective Date.— The amendments made by this section shall apply to obligations issued in calendar years beginning after the date of the enactment of this Act.

SEC. 80402. Carbon Dioxide Capture Facilities.

(a)
In General.— Section 142(a) of the Internal Revenue Code of 1986, as amended by section 80401, is amended by striking “ or” at the end of paragraph (15), by striking the period at the end of paragraph (16) and inserting “ , or”, and by adding at the end the following new paragraph:

“(17) qualified carbon dioxide capture facilities.”

(b)
Qualified Carbon Dioxide Capture Facilities.— Section 142 of such Code, as amended by section 80401, is amended by adding at the end the following new subsection:

“(o) Qualified Carbon Dioxide Capture Facility.—

“(1) In general.—For purposes of subsection (a)(17), the term ‘qualified carbon dioxide capture facility’ means—

“(A) the eligible components of an industrial carbon dioxide facility, and

“(B) a direct air capture facility (as defined in section 45Q(e)(1)).

“(2) Definitions.—For purposes of this subsection:

“(A) Eligible component.—

“(i) In general.—The term ‘eligible component’ means any equipment which is installed in an industrial carbon dioxide facility that satisfies the requirements under paragraph (3) and which is—

“(I) used for the purpose of capture, treatment and purification, compression, transportation, or on-site storage of carbon dioxide produced by the industrial carbon dioxide facility, or

“(II) integral or functionally related and subordinate to a process which converts a solid or liquid product from coal, petroleum residue, biomass, or other materials which are recovered for their energy or feedstock value into a synthesis gas composed primarily of carbon dioxide and hydrogen for direct use or subsequent chemical or physical conversion.

“(ii) Definitions.—For purposes of this subparagraph—

“(I) Biomass.—

“(aa) In general.—The term ‘biomass’ means any—

“(AA) agricultural or plant waste,

“(BB) byproduct of wood or paper mill operations, including lignin in spent pulping liquors, and

“(CC) other products of forestry maintenance.

“(bb) Exclusion.—The term ‘biomass’ does not include paper which is commonly recycled.

“(II) Coal.—The term ‘coal’ means anthracite, bituminous coal, subbituminous coal, lignite, and peat.

“(B) Industrial carbon dioxide facility.—

“(i) In general.—Except as provided in clause (ii), the term ‘industrial carbon dioxide facility’ means a facility that emits carbon dioxide (including from any fugitive emissions source) that is created as a result of any of the following processes:

“(I) Fuel combustion.

“(II) Gasification.

“(III) Bioindustrial.

“(IV) Fermentation.

“(V) Any manufacturing industry relating to—

“(aa) chemicals,

“(bb) fertilizers,

“(cc) glass,

“(dd) steel,

“(ee) petroleum residues,

“(ff) forest products,

“(gg) agriculture, including feedlots and dairy operations, and

“(hh) transportation grade liquid fuels.

“(ii) Exceptions.—For purposes of clause (i), an industrial carbon dioxide facility shall not include—

“(I) any geological gas facility, or

“(II) any air separation unit that—

“(aa) does not qualify as gasification equipment, or

“(bb) is not a necessary component of an oxy-fuel combustion process.

“(iii) Definitions.—For purposes of this subparagraph—

“(I) Petroleum residue.—The term ‘petroleum residue’ means the carbonized product of high-boiling hydrocarbon fractions obtained in petroleum processing.

“(II) Geological gas facility.—The term ‘geological gas facility’ means a facility that—

“(aa) produces a raw product consisting of gas or mixed gas and liquid from a geological formation,

“(bb) transports or removes impurities from such product, or

“(cc) separates such product into its constituent parts.

“(3) Special rule for facilities with less than 65 percent capture and storage percentage.—

“(A) In general.—Subject to subparagraph (B), the eligible components of an industrial carbon dioxide facility satisfies the requirements of this paragraph if such eligible components are designed to have a capture and storage percentage (as determined under subparagraph (C)) that is equal to or greater than 65 percent.

“(B) Exception.—In the case of an industrial carbon dioxide facility designed with a capture and storage percentage that is less than 65 percent, the percentage of the cost of the eligible components installed in such facility that may be financed with tax-exempt bonds may not be greater than the designed capture and storage percentage.

“(C) Capture and storage percentage.—

“(i) In general.—Subject to clause (ii), the capture and storage percentage shall be an amount, expressed as a percentage, equal to the quotient of—

“(I) the total metric tons of carbon dioxide designed to be annually captured, transported, and injected into—

“(aa) a facility for geologic storage, or

“(bb) an enhanced oil or gas recovery well followed by geologic storage, divided by

“(II) the total metric tons of carbon dioxide which would otherwise be released into the atmosphere each year as industrial emission of greenhouse gas if the eligible components were not installed in the industrial carbon dioxide facility.

“(ii) Limited application of eligible components.—In the case of eligible components that are designed to capture carbon dioxide solely from specific sources of emissions or portions thereof within an industrial carbon dioxide facility, the capture and storage percentage under this subparagraph shall be determined based only on such specific sources of emissions or portions thereof.

“(4) Regulations.—The Secretary shall issue such regulations or other guidance as are necessary to carry out the provisions of this subsection, including methods for determining costs attributable to an eligible component for purposes of paragraph (3)(A).”

(c)
Volume Cap.— Section 146(g) of such Code, as amended by section 80401, is amended by striking “ and” at the end of paragraph (4), by striking the period at the end of paragraph (5) and inserting “ , and”, and by inserting immediately after paragraph (5) the following new paragraph:

“(6) 75 percent of any exempt facility bond issued as part of an issue described in paragraph (17) of section 142(a) (relating to qualified carbon dioxide capture facilities).”

(d)
Clarification of Private Business Use.— Section 141(b)(6) of such Code is amended by adding at the end the following new subparagraph:

“(C) Clarification relating to qualified carbon dioxide capture facilities.—For purposes of this subsection, the sale of carbon dioxide produced by a qualified carbon dioxide capture facility (as defined in section 142(o)) which is owned by a governmental unit shall not constitute private business use.”

(e)
Coordination With Credit for Carbon Oxide Sequestration.— Section 45Q(f) of such Code is amended by adding at the end the following new paragraph:

“(3) Credit reduced for certain tax-exempt bonds.—The amount of the credit determined under subsection (a) with respect to any project for any taxable year shall be reduced by the amount which is the product of the amount so determined for such year and the lesser of ½ or a fraction—

“(A) the numerator of which is the sum, for the taxable year and all prior taxable years, of the proceeds from an issue described in section 142(a)(17) used to provide financing for the project the interest on which is exempt from tax under section 103, and

“(B) the denominator of which is the aggregate amount of additions to the capital account for the project for the taxable year and all prior taxable years.

(f)
Effective Date.— The amendments made by this section shall apply to obligations issued after December 31, 2021.

SEC. 80403. Increase in National Limitation Amount for Qualified Highway or Surface Freight Transportation Facilities.

(a)
In General.— Section 142(m)(2)(A) of the Internal Revenue Code of 1986 is amended by striking “ $15,000,000,000” and inserting “ $30,000,000,000”.
(b)
Effective Date.— The amendment made by this section shall apply to bonds issued after the date of the enactment of this Act.

TITLE V Relief for Taxpayers Affected by Disasters or Other Critical Events

SEC. 80501. Modification of Automatic Extension of Certain Deadlines in the Case of Taxpayers Affected by Federally Declared Disasters.

(a)
In General.— Section 7508A(d) of the Internal Revenue Code of 1986 is amended—
(1)
in paragraph (1)—
(A)
by striking “ the latest incident date so specified” in subparagraph (B) and inserting “ the later of such earliest incident date described in subparagraph (A) or the date such declaration was issued”, and
(B)
by striking “ in the same manner as a period specified under subsection (a)” and inserting “ in determining, under the internal revenue laws, in respect of any tax liability of such qualified taxpayer, whether any of the acts described in subparagraphs (A) through (F) of section 7508(a)(1) were performed within the time prescribed therefor (determined without regard to extension under any other provision of this subtitle for periods after the date determined under subparagraph (B))”,
(2)
by striking paragraph (3) and inserting the following:

“(3) Disaster area.—For purposes of this subsection, the term ‘disaster area’ means an area in which a major disaster for which the President provides financial assistance under section 408 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5174) occurs.”

, and

(3)
by adding at the end the following:

“(6) Multiple declarations.—For purposes of paragraph (1), in the case of multiple declarations relating to a disaster area which are issued within a 60-day period, a separate period shall be determined under such paragraph with respect to each such declaration.”

(b)
Effective Date.— The amendment made by this section shall apply to federally declared disasters declared after the date of enactment of this Act.

SEC. 80502. Modifications of Rules for Postponing Certain Acts by Reason of Service in Combat Zone or Contingency Operation.

(a)
In General.— Section 7508(a)(1) of the Internal Revenue Code of 1986 is amended—
(1)
by striking subparagraph (C) and inserting the following:

“(C) Filing a petition with the Tax Court, or filing a notice of appeal from a decision of the Tax Court;”

, and

(2)
by inserting “ or in respect of any erroneous refund” after “ any tax” in subparagraph (J).
(b)
Effective Date.— The amendments made by this section shall apply to any period for performing an act which has not expired before the date of the enactment of this Act.

SEC. 80503. Tolling of Time for Filing a Petition with the Tax Court.

(a)
In General.— Section 7451 of the Internal Revenue Code of 1986 is amended—
(1)
by striking “ The Tax Court” and inserting the following:

“(a) Fees.—The Tax Court”

, and

(2)
by adding at the end the following new subsection:

“(b) Tolling of Time in Certain Cases.—

“(1) In general.—Notwithstanding any other provision of this title, in any case (including by reason of a lapse in appropriations) in which a filing location is inaccessible or otherwise unavailable to the general public on the date a petition is due, the relevant time period for filing such petition shall be tolled for the number of days within the period of inaccessibility plus an additional 14 days.

“(2) Filing location.—For purposes of this subsection, the term ‘filing location’ means—

“(A) the office of the clerk of the Tax Court, or

“(B) any on-line portal made available by the Tax Court for electronic filing of petitions.”

(b)
Conforming Amendments.—
(1)
The heading for section 7451 of the Internal Revenue Code of 1986 is amended by striking “ fee for filing petition” and inserting “ petitions”.
(2)
The item in the table of contents for part II of subchapter C of chapter 76 of such Code is amended by striking “ Fee for filing petition” and inserting “ Petitions”.
(c)
Effective Date.— The amendments made by this section shall apply to petitions required to be timely filed (determined without regard to the amendments made by this section) after the date of enactment of this Act.

SEC. 80504. Authority to Postpone Certain Tax Deadlines by Reason of Significant Fires.

(a)
In General.— Section 7508A of the Internal Revenue Code of 1986 is amended—
(1)
by inserting “ , a significant fire,” after “ federally declared disaster (as defined in section 165(i)(5)(A))” in subsection (a),
(2)
by inserting “ , fire,” after “ disaster” each place it appears in subsections (a)(1) and (b), and
(3)
by adding at the end the following new subsection:

“(e) Significant Fire.—For purposes of this section, the term ‘significant fire’ means any fire with respect to which assistance is provided under section 420 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act.”

(b)
Conforming Amendments.—
(1)
The heading of section 7508A of the Internal Revenue Code of 1986 is amended by striking “ presidentially declared disaster” and inserting “ federally declared disaster, significant fire,”.
(2)
The item relating to section 7508A in the table of sections for chapter 77 of such Code is amended by striking “ Presidentially declared disaster” and inserting “ Federally declared disaster, significant fire,”.
(c)
Effective Date.— The amendments made by this section shall apply to fires for which assistance is provided after the date of the enactment of this Act.

TITLE VI Other Provisions

SEC. 80601. Modification of Tax Treatment of Contributions to the Capital of a Corporation.

(a)
In General.— Section 118 of the Internal Revenue Code of 1986 is amended—
(1)
in subsection (b), by inserting “ except as provided in subsection (c),” after “ For purposes of subsection (a),”,
(2)
by redesignating subsection (d) as subsection (e), and
(3)
by striking subsection (c) and inserting the following:

“(c) Special Rules for Water and Sewerage Disposal Utilities.—

“(1) General rule.—For purposes of this section, the term ‘contribution to the capital of the taxpayer’ includes any amount of money or other property received from any person (whether or not a shareholder) by a regulated public utility which provides water or sewerage disposal services if—

“(A) such amount is—

“(i) a contribution in aid of construction, or

“(ii) a contribution to the capital of such utility by a governmental entity providing for the protection, preservation, or enhancement of drinking water or sewerage disposal services,

“(B) in the case of a contribution in aid of construction which is property other than water or sewerage disposal facilities, such amount meets the requirements of the expenditure rule of paragraph (2), and

“(C) such amount (or any property acquired or constructed with such amount) is not included in the taxpayer’s rate base for ratemaking purposes.

“(2) Expenditure rule.—An amount meets the requirements of this paragraph if—

“(A) an amount equal to such amount is expended for the acquisition or construction of tangible property described in section 1231(b)—

“(i) which is the property for which the contribution was made or is of the same type as such property, and

“(ii) which is used predominantly in the trade or business of furnishing water or sewerage disposal services,

“(B) the expenditure referred to in subparagraph (A) occurs before the end of the second taxable year after the year in which such amount was received, and

“(C) accurate records are kept of the amounts contributed and expenditures made, the expenditures to which contributions are allocated, and the year in which the contributions and expenditures are received and made.

“(3) Definitions.—For purposes of this subsection—

“(A) Contribution in aid of construction.—The term ‘contribution in aid of construction’ shall be defined by regulations prescribed by the Secretary, except that such term shall not include amounts paid as service charges for starting or stopping services.

“(B) Predominantly.—The term ‘predominantly’ means 80 percent or more.

“(C) Regulated public utility.—The term ‘regulated public utility’ has the meaning given such term by section 7701(a)(33), except that such term shall not include any utility which is not required to provide water or sewerage disposal services to members of the general public in its service area.

“(4) Disallowance of deductions and credits; adjusted basis.—Notwithstanding any other provision of this subtitle, no deduction or credit shall be allowed for, or by reason of, any expenditure which constitutes a contribution in aid of construction to which this subsection applies. The adjusted basis of any property acquired with contributions in aid of construction to which this subsection applies shall be zero.

“(d) Statute of Limitations.—If the taxpayer for any taxable year treats an amount as a contribution to the capital of the taxpayer described in subsection (c)(1)(A)(i), then—

“(1) the statutory period for the assessment of any deficiency attributable to any part of such amount shall not expire before the expiration of 3 years from the date the Secretary is notified by the taxpayer (in such manner as the Secretary may prescribe) of—

“(A) the amount of the expenditure referred to in subparagraph (A) of subsection (c)(2),

“(B) the taxpayer’s intention not to make the expenditures referred to in such subparagraph, or

“(C) a failure to make such expenditure within the period described in subparagraph (B) of subsection (c)(2), and

“(2) such deficiency may be assessed before the expiration of such 3-year period notwithstanding the provisions of any other law or rule of law which would otherwise prevent such assessment.”

(b)
Effective Date.— The amendments made by this section shall apply to contributions made after December 31, 2020.

SEC. 80602. Extension of Interest Rate Stabilization.

(a)
Funding Stabilization Under the Internal Revenue Code of 1986.— The table in subclause (II) of section 430(h)(2)(C)(iv) of the Internal Revenue Code of 1986 is amended to read as follows:
“If the calendar year is: The applicable minimum percentage is: The applicable maximum percentage is:
Any year in the period starting in 2012 and ending in 2019 90% 110%
Any year in the period starting in 2020 and ending in 2030 95% 105%
2031 90% 110%
2032 85% 115%
2033 80% 120%
2034 75% 125%
After 2034 70% 130%.”.
(b)
Funding Stabilization Under Employee Retirement Income Security Act of 1974.—
(1)
In general.— The table in subclause (II) of section 303(h)(2)(C)(iv) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1083(h)(2)(C)(iv)) is amended to read as follows:
“If the calendar year is: The applicable minimum percentage is: The applicable maximum percentage is:
Any year in the period starting in 2012 and ending in 2019 90% 110%
Any year in the period starting in 2020 and ending in 2030 95% 105%
2031 90% 110%
2032 85% 115%
2033 80% 120%
2034 75% 125%
After 2034 70% 130%.”.
(2)
Conforming amendments.—
(A)
In general.— Section 101(f)(2)(D) of such Act (29 U.S.C. 1021(f)(2)(D)) is amended—
(i)
in clause (i), by striking “ and the American Rescue Plan Act of 2021” both places it appears and inserting “ , the American Rescue Plan Act of 2021, and the Infrastructure Investment and Jobs Act”, and
(ii)
in clause (ii), by striking “ 2029” and inserting “ 2034”.
(B)
Statements.— The Secretary of Labor shall modify the statements required under subclauses (I) and (II) of section 101(f)(2)(D)(i) of such Act to conform to the amendments made by this section.
(c)
Effective Date.— The amendments made by this section shall apply with respect to plan years beginning after December 31, 2021.

SEC. 80603. Information Reporting for Brokers and Digital Assets.

(a)
Clarification of Definition of Broker.— Section 6045(c)(1) of the Internal Revenue Code of 1986 is amended—
(1)
by striking “ and” at the end of subparagraph (B),
(2)
in subparagraph (C)—
(A)
by striking “ any other person who (for a consideration)” and inserting “ any person who (for consideration)”, and
(B)
by striking the period at the end and inserting “ , and”, and
(3)
by inserting after subparagraph (C) the following new subparagraph:

“(D) any person who (for consideration) is responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person.”

(b)
Reporting of Digital Assets.—
(1)
Brokers.—
(A)
Treatment as specified security.— Section 6045(g)(3)(B) of the Internal Revenue Code of 1986 is amended by striking “ and” at the end of clause (iii), by redesignating clause (iv) as clause (v), and by inserting after clause (iii) the following new clause:

“(iv) any digital asset, and”

(B)
Definition of digital asset.— Section 6045(g)(3) of such Code is amended by adding at the end the following new subparagraph:

“(D) Digital asset.—Except as otherwise provided by the Secretary, the term ‘digital asset’ means any digital representation of value which is recorded on a cryptographically secured distributed ledger or any similar technology as specified by the Secretary.”

(C)
Applicable date.— Section 6045(g)(3)(C) of such Code is amended—
(i)
in clause (ii), by striking “ and” at the end,
(ii)
by redesignating clause (iii) as clause (iv), and
(iii)
by inserting after clause (ii) the following:

“(iii) January 1, 2023, in the case of any specified security which is a digital asset, and”

(2)
Furnishing of information.—
(A)
In general.— Section 6045A of such Code is amended—
(i)
in subsection (a), by striking “ a security which is”, and
(ii)
by adding at the end the following:

“(d) Return Requirement for Certain Transfers of Digital Assets Not Otherwise Subject to Reporting.—Any broker, with respect to any transfer (which is not part of a sale or exchange executed by such broker) during a calendar year of a covered security which is a digital asset from an account maintained by such broker to an account which is not maintained by, or an address not associated with, a person that such broker knows or has reason to know is also a broker, shall make a return for such calendar year, in such form as determined by the Secretary, showing the information otherwise required to be furnished with respect to transfers subject to subsection (a).”

(B)
Reporting penalties.— Section 6724(d)(1)(B) of such Code is amended by striking “ or” at the end of clause (xxv), by striking “ and” at the end of clause (xxvi), and by inserting after clause (xxvi) the following new clause:

“(xxvii) section 6045A(d) (relating to returns for certain digital assets),”

(3)
Treatment as cash for purposes of section 6050i.— Section 6050I(d) of such Code 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) any digital asset (as defined in section 6045(g)(3)(D)).”

(c)
Effective Date.— The amendments made by this section shall apply to returns required to be filed, and statements required to be furnished, after December 31, 2023.
(d)
Rule of Construction.— Nothing in this section or the amendments made by this section shall be construed to create any inference, for any period prior to the effective date of such amendments, with respect to—
(1)
whether any person is a broker under section 6045(c)(1) of the Internal Revenue Code of 1986, or
(2)
whether any digital asset is property which is a specified security under section 6045(g)(3)(B) of such Code.

SEC. 80604. Termination of Employee Retention Credit for Employers Subject to Closure Due to Covid–19.

(a)
In General.— Section 3134 of the Internal Revenue Code of 1986 is amended—
(1)
in subsection (c)(5)—
(A)
in subparagraph (A), by adding “ and” at the end,
(B)
in subparagraph (B), by striking “ , and” at the end and inserting a period, and
(C)
by striking subparagraph (C), and
(2)
in subsection (n), by striking “ January 1, 2022” and inserting “ October 1, 2021 (or, in the case of wages paid by an eligible employer which is a recovery startup business, January 1, 2022)”.
(b)
Effective Date.— The amendments made by this section shall apply to calendar quarters beginning after September 30, 2021.