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Further Consolidated Appropriations Act, 2020 (P.L. 116-94)

UNDATED

H.R. 1865 (as enacted); Further Consolidated Appropriations Act, 2020

UNDATED

DOCUMENT ATTRIBUTES

Institutional Authors
U.S. House of Representatives
U.S. Senate
Code Sections
Section 4191
Section 4980I
Section 401
Section 529
Section 108
Subject Area/Tax Topics
Benefits and pensions
Credits
Energy taxation
Exemptions and deductions
Healthcare taxation
Insurance
Tax preference items and incentives
Industry Groups
Energy
Health care
Insurance
Transportation
Jurisdictions
United States
Tax Analysts Document Number
2019-48415
Tax Analysts Electronic Citation
2019 TNTF 247-27

Citations: H.R. 1865 (as enacted); Further Consolidated Appropriations Act, 2020

[Editor's Note:

Asterisks indicate omitted text.

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One Hundred Sixteenth Congress
of the
United States of America

AT THE FIRST SESSION

Begun and held at the City of Washington on Thursday,
the third day of January, two thousand and nineteen

An Act

Making further consolidated appropriations for the fiscal year ending September 30, 2020, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the "Further Consolidated Appropriations Act, 2020".

* * *

SEC. 104. EXTENSION OF APPROPRIATIONS TO THE PATIENT-CENTERED OUTCOMES RESEARCH TRUST FUND; EXTENSION OF CERTAIN HEALTH INSURANCE FEES.

(a) IN GENERAL. — Section 9511 of the Internal Revenue Code of 1986 is amended —

(1) in subsection (b) —

(A) in paragraph (1) —

(i) by inserting after subparagraph (E) the following new subparagraph:

"(F) For each of fiscal years 2020 through 2029 —

"(i) an amount equivalent to the net revenues received in the Treasury from the fees imposed under subchapter B of chapter 34 (relating to fees on health insurance and self-insured plans) for such fiscal year; and

"(ii) the applicable amount (as defined in paragraph (4)) for the fiscal year."; and

(ii) by striking "and (E)(ii)" in the last sentence and inserting "(E)(ii), and (F)(ii)"; and

(B) by adding at the end the following new paragraph:

"(4) APPLICABLE AMOUNT DEFINED. — In paragraph (1)(F)(ii), the term 'applicable amount' means —

"(A) for fiscal year 2020, $275,500,000;

"(B) for fiscal year 2021, $285,000,000;

"(C) for fiscal year 2022, $293,500,000;

"(D) for fiscal year 2023, $311,500,000;

"(E) for fiscal year 2024, $320,000,000;

"(F) for fiscal year 2025, $338,000,000;

"(G) for fiscal year 2026, $355,500,000;

"(H) for fiscal year 2027, $363,500,000;

"(I) for fiscal year 2028, $381,000,000; and

"(J) for fiscal year 2029, $399,000,000.";

(2) in subsection (d)(2)(A), by striking "2019" and inserting "2029"; and

(3) in subsection (f), by striking "December 20, 2019" and inserting "September 30, 2029".

(b) HEALTH INSURANCE POLICIES. — Section 4375(e) of the Internal Revenue Code of 1986 is amended by striking "2019" and inserting "2029".

(c) SELF-INSURED HEALTH PLANS. — Section 4376(e) of the Internal Revenue Code of 1986 is amended by striking "2019" and inserting "2029".

(d) IDENTIFICATION OF RESEARCH PRIORITIES. — Subsection (d)(1)(A) of section 1181 of the Social Security Act (42 U.S.C. 1320e) is amended by adding at the end the following: "Such national priorities shall include research with respect to intellectual and developmental disabilities and maternal mortality. Such priorities should reflect a balance between long-term priorities and short-term priorities, and be responsive to changes in medical evidence and in health care treatments.".

(e) CONSIDERATION OF FULL RANGE OF OUTCOMES DATA. — Sub section (d)(2) of such section 1181 is amended by adding at the end the following subparagraph:

"(F) CONSIDERATION OF FULL RANGE OF OUTCOMES DATA. — Research shall be designed, as appropriate, to take into account and capture the full range of clinical and patient-centered outcomes relevant to, and that meet the needs of, patients, clinicians, purchasers, and policy-makers in making informed health decisions. In addition to the relative health outcomes and clinical effectiveness, clinical and patient-centered outcomes shall include the potential burdens and economic impacts of the utilization of medical treatments, items, and services on different stakeholders and decision-makers respectively. These potential burdens and economic impacts include medical out-of-pocket costs, including health plan benefit and formulary design, non-medical costs to the patient and family, including caregiving, effects on future costs of care, workplace productivity and absenteeism, and healthcare utilization.".

(f) BOARD COMPOSITION. — Subsection (f) of such section 1181 is amended —

(1) in paragraph (1) —

(A) in subparagraph (C) —

(i) in the matter preceding clause (i) —

(I) by striking "Seventeen" and inserting "At least nineteen, but no more than twenty-one"; and

(II) by striking ", not later than 6 months after the date of enactment of this section,"; and

(ii) in clause (iii), by striking "3" and inserting "at least 3, but no more than 5"; and

(2) in paragraph (3) —

(A) in the first sentence —

(i) by striking the "the members" and inserting "members"; and

(ii) by inserting the following before the period at the end: "to the extent necessary to preserve the evenly staggered terms of the Board."; and

(B) by inserting the following after the first sentence: "Any member appointed to fill a vacancy occurring before the expiration of the term for which the member's predecessor was appointed shall be appointed for the remainder of that term and thereafter may be eligible for reappointment to a full term. A member may serve after the expiration of that member's term until a successor has been appointed.".

(g) METHODOLOGY COMMITTEE APPOINTMENTS. — Such section 1181 is amended —

(1) in subsection (d)(6)(B), by striking "Comptroller General of the United States" and inserting "Board"; and

(2) in subsection (h)(4) —

(A) in subparagraph (A)(ii), by striking "Comptroller General" and inserting "Board"; and

(B) in the first sentence of subparagraph (B), by striking "and of the Government Accountability Office".

(h) REPORTS BY THE COMPTROLLER GENERAL OF THE UNITED STATES. — Subsection (g)(2)(A) of such section 1181 is amended —

(1) by striking clause (iv) and inserting the following:

"(iv) Not less frequently than every 5 years, the overall effectiveness of activities conducted under this section and the dissemination, training, and capacity building activities conducted under section 937 of the Public Health Service Act. Such review shall include the following:

"(I) A description of those activities and the financial commitments related to research, training, data capacity building, and dissemination and uptake of research findings.

"(II) The extent to which the Institute and the Agency for Healthcare Research and Quality have collaborated with stakeholders, including provider and payer organizations, to facilitate the dissemination and uptake of research findings.

"(III) Ananalysis of available data and performance metrics, such as the estimated public availability and dissemination of research findings and uptake and utilization of research findings in clinical guidelines and decision support tools, on the extent to which such research findings are used by health care decision-makers, the effect of the dissemination of such findings on changes in medical practice and reducing practice variation and disparities in health care, and the effect of the research conducted and disseminated on innovation and the health care economy of the United States."; and

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

"(vi) Not less frequently than every 5 years, any barriers that researchers funded by the Institute have encountered in conducting studies or clinical trials, including challenges covering the cost of any medical treatments, services, and items described in subsection (a)(2)(B) for purposes of the research study.".

* * *

Subtitle E — Revenue Provisions

SEC. 501. REPEAL OF MEDICAL DEVICE EXCISE TAX.

(a) IN GENERAL. — Chapter 32 of the Internal Revenue Code of 1986 is amended by striking subchapter E.

(b) CONFORMING AMENDMENTS. —

(1) Subsection (a) of section 4221 of the Internal Revenue Code of 1986 is amended by striking the last sentence.

(2) Paragraph (2) of section 6416(b) of such Code is amended by striking the last sentence.

(c) CLERICAL AMENDMENT. — The table of subchapters for chapter 32 of the Internal Revenue Code of 1986 is amended by striking the item relating to subchapter E.

(d) EFFECTIVE DATE. — The amendments made by this section shall apply to sales after December 31, 2019.

SEC. 502. REPEAL OF ANNUAL FEE ON HEALTH INSURANCE PROVIDERS.

(a) IN GENERAL. — Subtitle A of title IX of the Patient Protection and Affordable Care Act is amended by striking section 9010.

(b) EFFECTIVE DATE. — The amendment made by this section shall apply to calendar years beginning after December 31, 2020.

SEC. 503. REPEAL OF EXCISE TAX ON HIGH COST EMPLOYER-SPONSORED HEALTH COVERAGE.

(a) IN GENERAL. — Chapter 43 of the Internal Revenue Code of 1986 is amended by striking section 4980I.

(b) CONFORMING AMENDMENTS. —

(1) Section 6051 of such Code is amended —

(A) by striking "section 4980I(d)(1)" in subsection (a)(14) and inserting "subsection (g)", and

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

"(g) APPLICABLE EMPLOYER-SPONSORED COVERAGE. — For purposes of subsection (a)(14) —

"(1) IN GENERAL. — The term 'applicable employer-sponsored coverage' means, with respect to any employee, coverage under any group health plan made available to the employee by an employer which is excludable from the employee's gross income under section 106, or would be so excludable if it were employer-provided coverage (within the meaning of such section 106).

"(2) EXCEPTIONS. — The term 'applicable employer-sponsored coverage' shall not include —

"(A) any coverage (whether through insurance or otherwise) described in section 9832(c)(1) (other than subparagraph (G) thereof) or for long-term care,

"(B) any coverage under a separate policy, certificate, or contract of insurance which provides benefits substantially all of which are for treatment of the mouth (including any organ or structure within the mouth) or for treatment of the eye, or

"(C) any coverage described in section 9832(c)(3) the payment for which is not excludable from gross income and for which a deduction under section 162(l) is not allowable.

"(3) COVERAGE INCLUDES EMPLOYEE PAID PORTION. — Coverage shall be treated as applicable employer-sponsored coverage without regard to whether the employer or employee pays for the coverage.

"(4) GOVERNMENTAL PLAN INCLUDED. — Applicable employer-sponsored coverage shall include coverage under any group health plan established and maintained primarily for its civilian employees by the Government of the United States, by the government of any State or political subdivision thereof, or by any agency or instrumentality of any such government.".

(2) Section 9831(d)(1) of such Code is amended by striking "except as provided in section 4980I(f)(4)".

(3) The table of sections for chapter 43 of such Code is amended by striking the item relating to section 4980I.

(c) EFFECTIVE DATE. — The amendments made by this section shall apply to taxable years beginning after December 31, 2019.

* * *

DIVISION O — SETTING EVERY COMMUNITY UP FOR RETIREMENT ENHANCEMENT

SEC. 1. SHORT TITLE, ETC.

(a) SHORT TITLE. — This Act may be cited as the "Setting Every Community Up for Retirement Enhancement Act of 2019".

* * *

TITLE I — EXPANDING AND PRESERVING RETIREMENT SAVINGS

SEC. 101. MULTIPLE EMPLOYER PLANS; POOLED EMPLOYER PLANS.

(a) QUALIFICATION REQUIREMENTS. —

(1) IN GENERAL. — Section 413 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

"(e) APPLICATION OF QUALIFICATION REQUIREMENTS FOR CERTAIN MULTIPLE EMPLOYER PLANS WITH POOLED PLAN PROVIDERS. —

"(1) IN GENERAL. — Except as provided in paragraph (2), if a defined contribution plan to which subsection (c) applies —

"(A) is maintained by employers which have a common interest other than having adopted the plan, or

"(B) in the case of a plan not described in subparagraph (A), has a pooled plan provider,

then the plan shall not be treated as failing to meet the requirements under this title applicable to a plan described in section 401(a) or to a plan that consists of individual retirement accounts described in section 408 (including by reason of subsection (c) thereof), whichever is applicable, merely because one or more employers of employees covered by the plan fail to take such actions as are required of such employers for the plan to meet such requirements.

"(2) LIMITATIONS. —

"(A) IN GENERAL. — Paragraph (1) shall not apply to any plan unless the terms of the plan provide that in the case of any employer in the plan failing to take the actions described in paragraph (1) —

"(i) the assets of the plan attributable to employees of such employer (or beneficiaries of such employees) will be transferred to a plan maintained only by such employer (or its successor), to an eligible retirement plan as defined in section 402(c)(8)(B) for each individual whose account is transferred, or to any other arrangement that the Secretary determines is appropriate, unless the Secretary determines it is in the best interests of the employees of such employer (and the beneficiaries of such employees) to retain the assets in the plan, and

"(ii) such employer (and not the plan with respect to which the failure occurred or any other employer in such plan) shall, except to the extent provided by the Secretary, be liable for any liabilities with respect to such plan attributable to employees of such employer (or beneficiaries of such employees).

"(B) FAILURES BY POOLED PLAN PROVIDERS. — If the pooled plan provider of a plan described in paragraph (1)(B) does not perform substantially all of the administrative duties which are required of the provider under paragraph (3)(A)(i) for any plan year, the Secretary may provide that the determination as to whether the plan meets the requirements under this title applicable to a plan described in section 401(a) or to a plan that consists of individual retirement accounts described in section 408 (including by reason of subsection (c) thereof), whichever is applicable, shall be made in the same manner as would be made without regard to paragraph (1).

"(3) POOLED PLAN PROVIDER. —

"(A) IN GENERAL. — For purposes of this subsection, the term 'pooled plan provider' means, with respect to any plan, a person who —

"(i) is designated by the terms of the plan as a named fiduciary (within the meaning of section 402(a)(2) of the Employee Retirement Income Security Act of 1974), as the plan administrator, and as the person responsible to perform all administrative duties (including conducting proper testing with respect to the plan and the employees of each employer in the plan) which are reasonably necessary to ensure that —

"(I) the plan meets any requirement applicable under the Employee Retirement Income Security Act of 1974 or this title to a plan described in section 401(a) or to a plan that consists of individual retirement accounts described in section 408 (including by reason of subsection (c) thereof), whichever is applicable, and

"(II) each employer in the plan takes such actions as the Secretary or such person determines are necessary for the plan to meet the requirements described in subclause (I), including providing to such person any disclosures or other information which the Secretary may require or which such person otherwise determines are necessary to administer the plan or to allow the plan to meet such requirements,

"(ii) registers as a pooled plan provider with the Secretary, and provides such other information to the Secretary as the Secretary may require, before beginning operations as a pooled plan provider,

"(iii) acknowledges in writing that such person is a named fiduciary (within the meaning of section 402(a)(2) of the Employee Retirement Income Security Act of 1974), and the plan administrator, with respect to the plan, and

"(iv) is responsible for ensuring that all persons who handle assets of, or who are fiduciaries of, the plan are bonded in accordance with section 412 of the Employee Retirement Income Security Act of 1974.

"(B) AUDITS, EXAMINATIONS AND INVESTIGATIONS. — The Secretary may perform audits, examinations, and investigations of pooled plan providers as may be necessary to enforce and carry out the purposes of this subsection.

"(C) AGGREGATION RULES. — For purposes of this paragraph, in determining whether a person meets the requirements of this paragraph to be a pooled plan provider with respect to any plan, all persons who perform services for the plan and who are treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as one person.

"(D) TREATMENT OF EMPLOYERS AS PLAN SPONSORS. — Except with respect to the administrative duties of the pooled plan provider described in subparagraph (A)(i), each employer in a plan which has a pooled plan provider shall be treated as the plan sponsor with respect to the portion of the plan attributable to employees of such employer (or beneficiaries of such employees).

"(4) GUIDANCE. —

"(A) IN GENERAL. — The Secretary shall issue such guidance as the Secretary determines appropriate to carry out this subsection, including guidance —

"(i) to identify the administrative duties and other actions required to be performed by a pooled plan provider under this subsection,

"(ii) which describes the procedures to be taken to terminate a plan which fails to meet the requirements to be a plan described in paragraph (1), including the proper treatment of, and actions needed to be taken by, any employer in the plan and the assets and liabilities of the plan attributable to employees of such employer (or beneficiaries of such employees), and

"(iii) identifying appropriate cases to which the rules of paragraph (2)(A) will apply to employers in the plan failing to take the actions described in paragraph (1).

The Secretary shall take into account under clause (iii) whether the failure of an employer or pooled plan provider to provide any disclosures or other information, or to take any other action, necessary to administer a plan or to allow a plan to meet requirements applicable to the plan under section 401(a) or 408, whichever is applicable, has continued over a period of time that demonstrates a lack of commitment to compliance.

"(B) GOOD FAITH COMPLIANCE WITH LAW BEFORE GUIDANCE. — An employer or pooled plan provider shall not be treated as failing to meet a requirement of guidance issued by the Secretary under this paragraph if, before the issuance of such guidance, the employer or pooled plan provider complies in good faith with a reasonable interpretation of the provisions of this subsection to which such guidance relates.

"(5) MODEL PLAN. — The Secretary shall publish model plan language which meets the requirements of this subsection and of paragraphs (43) and (44) of section 3 of the Employee Retirement Income Security Act of 1974 and which may be adopted in order for a plan to be treated as a plan described in paragraph (1)(B).".

(2) CONFORMING AMENDMENT. — Section 413(c)(2) of such Code is amended by striking "section 401(a)" and inserting "sections 401(a) and 408(c)".

(3) TECHNICAL AMENDMENT. — Section 408(c) of such Code is amended by inserting after paragraph (2) the following new paragraph:

"(3) There is a separate accounting for any interest of an employee or member (or spouse of an employee or member) in a Roth IRA.".

(b) NO COMMON INTEREST REQUIRED FOR POOLED EMPLOYER PLANS. — Section 3(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002(2)) is amended by adding at the end the following:

"(C) A pooled employer plan shall be treated as —

"(i) a single employee pension benefit plan or single pension plan; and

"(ii) a plan to which section 210(a) applies.".

(1) IN GENERAL. — Section 3 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002) is amended by adding at the end the following:

"(43) POOLED EMPLOYER PLAN. —

"(A) IN GENERAL. — The term 'pooled employer plan' means a plan —

"(i) which is an individual account plan established or maintained for the purpose of providing benefits to the employees of 2 or more employers;

"(ii) which is a plan described in section 401(a) of the Internal Revenue Code of 1986 which includes a trust exempt from tax under section 501(a) of such Code or a plan that consists of individual retirement accounts described in section 408 of such Code (including by reason of subsection (c) thereof); and

"(iii) the terms of which meet the requirements of subparagraph (B).

Such term shall not include a plan maintained by employers which have a common interest other than having adopted the plan.

"(B) REQUIREMENTS FOR PLAN TERMS. — The requirements of this subparagraph are met with respect to any plan if the terms of the plan —

"(i) designate a pooled plan provider and provide that the pooled plan provider is a named fiduciary of the plan;

"(ii) designate one or more trustees meeting the requirements of section 408(a)(2) of the Internal Revenue Code of 1986 (other than an employer in the plan) to be responsible for collecting contributions to, and holding the assets of, the plan and require such trustees to implement written contribution collection procedures that are reasonable, diligent, and systematic;

"(iii) provide that each employer in the plan retains fiduciary responsibility for —

"(I) the selection and monitoring in accordance with section 404(a) of the person designated as the pooled plan provider and any other person who, in addition to the pooled plan provider, is designated as a named fiduciary of the plan; and

"(II) to the extent not otherwise delegated to another fiduciary by the pooled plan provider and subject to the provisions of section 404(c), the investment and management of the portion of the plan's assets attributable to the employees of the employer (or beneficiaries of such employees);

"(iv) provide that employers in the plan, and participants and beneficiaries, are not subject to unreasonable restrictions, fees, or penalties with regard to ceasing participation, receipt of distributions, or otherwise transferring assets of the plan in accordance with section 208 or paragraph (44)(C)(i)(II);

"(v) require —

"(I) the pooled plan provider to provide to employers in the plan any disclosures or other information which the Secretary may require, including any disclosures or other information to facilitate the selection or any monitoring of the pooled plan provider by employers in the plan; and

"(II) each employer in the plan to take such actions as the Secretary or the pooled plan provider determines are necessary to administer the plan or for the plan to meet any requirement applicable under this Act or the Internal Revenue Code of 1986 to a plan described in section 401(a) of such Code or to a plan that consists of individual retirement accounts described in section 408 of such Code (including by reason of subsection (c) thereof), whichever is applicable, including providing any disclosures or other information which the Secretary may require or which the pooled plan provider otherwise determines are necessary to administer the plan or to allow the plan to meet such requirements; and

"(vi) provide that any disclosure or other information required to be provided under clause (v) may be provided in electronic form and will be designed to ensure only reasonable costs are imposed on pooled plan providers and employers in the plan.

"(C) EXCEPTIONS. — The term 'pooled employer plan' does not include —

"(i) a multiemployer plan; or

"(ii) a plan established before the date of the enactment of the Setting Every Community Up for Retirement Enhancement Act of 2019 unless the plan administrator elects that the plan will be treated as a pooled employer plan and the plan meets the requirements of this title applicable to a pooled employer plan established on or after such date.

"(D) TREATMENT OF EMPLOYERS AS PLAN SPONSORS. — Except with respect to the administrative duties of the pooled plan provider described in paragraph (44)(A)(i), each employer in a pooled employer plan shall be treated as the plan sponsor with respect to the portion of the plan attributable to employees of such employer (or beneficiaries of such employees).

"(44) POOLED PLAN PROVIDER. —

"(A) IN GENERAL. — The term 'pooled plan provider' means a person who —

"(i) is designated by the terms of a pooled employer plan as a named fiduciary, as the plan administrator, and as the person responsible for the performance of all administrative duties (including conducting proper testing with respect to the plan and the employees of each employer in the plan) which are reasonably necessary to ensure that —

"(I) the plan meets any requirement applicable under this Act or the Internal Revenue Code of 1986 to a plan described in section 401(a) of such Code or to a plan that consists of individual retirement accounts described in section 408 of such Code (including by reason of subsection (c) thereof), whichever is applicable; and

"(II) each employer in the plan takes such actions as the Secretary or pooled plan provider determines are necessary for the plan to meet the requirements described in subclause (I), including providing the disclosures and information described in paragraph (43)(B)(v)(II);

"(ii) registers as a pooled plan provider with the Secretary, and provides to the Secretary such other information as the Secretary may require, before beginning operations as a pooled plan provider;

"(iii) acknowledges in writing that such person is a named fiduciary, and the plan administrator, with respect to the pooled employer plan; and

"(iv) is responsible for ensuring that all persons who handle assets of, or who are fiduciaries of, the pooled employer plan are bonded in accordance with section 412.

"(C) GUIDANCE. — The Secretary shall issue such guidance as the Secretary determines appropriate to carry out this paragraph and paragraph (43), including guidance —

"(i) to identify the administrative duties and other actions required to be performed by a pooled plan provider under either such paragraph; and

"(ii) which requires in appropriate cases that if an employer in the plan fails to take the actions required under subparagraph (A)(i)(II) —

"(I) the assets of the plan attributable to employees of such employer (or beneficiaries of such employees) are transferred to a plan maintained only by such employer (or its successor), to an eligible retirement plan as defined in section 402(c)(8)(B) of the Internal Revenue Code of 1986 for each individual whose account is transferred, or to any other arrangement that the Secretary determines is appropriate in such guidance; and

"(II) such employer (and not the plan with respect to which the failure occurred or any other employer in such plan) shall, except to the extent provided in such guidance, be liable for any liabilities with respect to such plan attributable to employees of such employer (or beneficiaries of such employees).

The Secretary shall take into account under clause (ii) whether the failure of an employer or pooled plan provider to provide any disclosures or other information, or to take any other action, necessary to administer a plan or to allow a plan to meet requirements described in subparagraph (A)(i)(II) has continued over a period of time that demonstrates a lack of commitment to compliance. The Secretary may waive the requirements of subclause (ii)(I) in appropriate circumstances if the Secretary determines it is in the best interests of the employees of the employer referred to in such clause (and the beneficiaries of such employees) to retain the assets in the plan with respect to which the employer's failure occurred.

"(D) GOOD FAITH COMPLIANCE WITH LAW BEFORE GUIDANCE. — An employer or pooled plan provider shall not be treated as failing to meet a requirement of guidance issued by the Secretary under subparagraph (C) if, before the issuance of such guidance, the employer or pooled plan provider complies in good faith with a reasonable interpretation of the provisions of this paragraph, or paragraph (43), to which such guidance relates.

"(E) AGGREGATION RULES. — For purposes of this paragraph, in determining whether a person meets the requirements of this paragraph to be a pooled plan provider with respect to any plan, all persons who perform services for the plan and who are treated as a single employer under subsection (b), (c), (m), or (o) of section 414 of the Internal Revenue Code of 1986 shall be treated as one person.".

(2) BONDING REQUIREMENTS FOR POOLED EMPLOYER PLANS. — The last sentence of section 412(a) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1112(a)) is amended by inserting "or in the case of a pooled employer plan (as defined in section 3(43))" after "section 407(d)(1))".

(3) CONFORMING AND TECHNICAL AMENDMENTS. — Section 3 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002) is amended —

(A) in paragraph (16)(B) —

(i) by striking "or" at the end of clause (ii); and

(ii) by striking the period at the end and inserting ", or (iv) in the case of a pooled employer plan, the pooled plan provider."; and

(B) by striking the second paragraph (41).

(d) POOLED EMPLOYER AND MULTIPLE EMPLOYER PLAN REPORTING. —

(1) ADDITIONAL INFORMATION. — Section 103 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1023) is amended —

(A) in subsection (a)(1)(B), by striking "applicable subsections (d), (e), and (f)" and inserting "applicable subsections (d), (e), (f), and (g)"; and

(B) by amending subsection (g) to read as follows:

"(g) ADDITIONAL INFORMATION WITH RESPECT TO POOLED EMPLOYER AND MULTIPLE EMPLOYER PLANS. — An annual report under this section for a plan year shall include —

"(1) with respect to any plan to which section 210(a) applies (including a pooled employer plan), a list of employers in the plan and a good faith estimate of the percentage of total contributions made by such employers during the plan year and the aggregate account balances attributable to each employer in the plan (determined as the sum of the account balances of the employees of such employer (and the beneficiaries of such employees)); and

"(2) with respect to a pooled employer plan, the identifying information for the person designated under the terms of the plan as the pooled plan provider.".

(2) SIMPLIFIED ANNUAL REPORTS. — Section 104(a) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1024(a)) is amended by striking paragraph (2)(A) and inserting the following:

"(2)(A) With respect to annual reports required to be filed with the Secretary under this part, the Secretary may by regulation prescribe simplified annual reports for any pension plan that —

"(i) covers fewer than 100 participants; or

"(ii) is a plan described in section 210(a) that covers fewer than 1,000 participants, but only if no single employer in the plan has 100 or more participants covered by the plan.".

(e) EFFECTIVE DATE. —

(1) IN GENERAL. — The amendments made by this section shall apply to plan years beginning after December 31, 2020.

(2) RULE OF CONSTRUCTION. — Nothing in the amendments made by subsection (a) shall be construed as limiting the authority of the Secretary of the Treasury or the Secretary's delegate (determined without regard to such amendment) to provide for the proper treatment of a failure to meet any requirement applicable under the Internal Revenue Code of 1986 with respect to one employer (and its employees) in a multiple employer plan.

SEC. 102. INCREASE IN 10 PERCENT CAP FOR AUTOMATIC ENROLLMENT SAFE HARBOR AFTER 1ST PLAN YEAR.

(a) IN GENERAL. — Section 401(k)(13)(C)(iii) of the Internal Revenue Code of 1986 is amended by striking "does not exceed 10 percent" and inserting "does not exceed 15 percent (10 percent during the period described in subclause (I))".

(b) EFFECTIVE DATE. — The amendments made by this section shall apply to plan years beginning after December 31, 2019.

SEC. 103. RULES RELATING TO ELECTION OF SAFE HARBOR 401(k) STATUS.

(a) LIMITATION OF ANNUAL SAFE HARBOR NOTICE TO MATCHING

(1) IN GENERAL. — Subparagraph (A) of section 401(k)(12) of the Internal Revenue Code of 1986 is amended by striking "if such arrangement" and all that follows and inserting "if such arrangement —

"(i) meets the contribution requirements of subparagraph (B) and the notice requirements of subparagraph (D), or

"(ii) meets the contribution requirements of subparagraph (C).".

(2) AUTOMATIC CONTRIBUTION ARRANGEMENTS. — Subparagraph (B) of section 401(k)(13) of such Code is amended by striking "means" and all that follows and inserting "means a cash or deferred arrangement —

"(i) which is described in subparagraph (D)(i)(I) and meets the applicable requirements of subparagraphs (C) through (E), or

"(ii) which is described in subparagraph (D)(i)(II) and meets the applicable requirements of subparagraphs (C) and (D).".

(b) NONELECTIVE CONTRIBUTIONS. — Section 401(k)(12) of the Internal Revenue Code of 1986 is amended by redesignating subparagraph (F) as subparagraph (G), and by inserting after subparagraph (E) the following new subparagraph:

"(F) TIMING OF PLAN AMENDMENT FOR EMPLOYER MAKING NONELECTIVE CONTRIBUTIONS. —

"(i) IN GENERAL. — Except as provided in clause (ii), a plan may be amended after the beginning of a plan year to provide that the requirements of subparagraph (C) shall apply to the arrangement for the plan year, but only if the amendment is adopted —

"(I) at any time before the 30th day before the close of the plan year, or

"(II) at any time before the last day under paragraph (8)(A) for distributing excess contributions for the plan year.

"(ii) EXCEPTION WHERE PLAN PROVIDED FOR MATCHING CONTRIBUTIONS. — Clause (i) shall not apply to any plan year if the plan provided at any time during the plan year that the requirements of subparagraph (B) or paragraph (13)(D)(i)(I) applied to the plan year.

"(iii) 4-PERCENT CONTRIBUTION REQUIREMENT. — Clause (i)(II) shall not apply to an arrangement unless the amount of the contributions described in subparagraph (C) which the employer is required to make under the arrangement for the plan year with respect to any employee is an amount equal to at least 4 percent of the employee's compensation.".

(c) AUTOMATIC CONTRIBUTION ARRANGEMENTS. — Section 401(k)(13) of the Internal Revenue Code of 1986 is amended by adding at the end the following:

"(F) TIMING OF PLAN AMENDMENT FOR EMPLOYER MAKING NONELECTIVE CONTRIBUTIONS. —

"(i) IN GENERAL. — Except as provided in clause (ii), a plan may be amended after the beginning of a plan year to provide that the requirements of subparagraph (D)(i)(II) shall apply to the arrangement for the plan year, but only if the amendment is adopted —

"(I) at any time before the 30th day before the close of the plan year, or

"(II) at any time before the last day under paragraph (8)(A) for distributing excess contributions for the plan year.

"(ii) EXCEPTION WHERE PLAN PROVIDED FOR MATCHING CONTRIBUTIONS. — Clause (i) shall not apply to any plan year if the plan provided at any time during the plan year that the requirements of subparagraph (D)(i)(I) or paragraph (12)(B) applied to the plan year.

"(iii) 4-PERCENT CONTRIBUTION REQUIREMENT. — Clause (i)(II) shall not apply to an arrangement unless the amount of the contributions described in subparagraph (D)(i)(II) which the employer is required to make under the arrangement for the plan year with respect to any employee is an amount equal to at least 4 percent of the employee's compensation.".

(d) EFFECTIVE DATE. — The amendments made by this section shall apply to plan years beginning after December 31, 2019.

SEC. 104. INCREASE IN CREDIT LIMITATION FOR SMALL EMPLOYER PENSION PLAN STARTUP COSTS.

(a) IN GENERAL. — Paragraph (1) of section 45E(b) of the Internal Revenue Code of 1986 is amended to read as follows:

"(1) for the first credit year and each of the 2 taxable years immediately following the first credit year, the greater of —

"(A) $500, or

"(B) the lesser of —

"(i) $250 for each employee of the eligible employer who is not a highly compensated employee (as defined in section 414(q)) and who is eligible to participate in the eligible employer plan maintained by the eligible employer, or

"(ii) $5,000, and".

(b) EFFECTIVE DATE. — The amendment made by this section shall apply to taxable years beginning after December 31, 2019.

SEC. 105. SMALL EMPLOYER AUTOMATIC ENROLLMENT CREDIT.

(a) IN GENERAL. — Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

"SEC. 45T. AUTO-ENROLLMENT OPTION FOR RETIREMENT SAVINGS OPTIONS PROVIDED BY SMALL EMPLOYERS.

"(a) IN GENERAL. — For purposes of section 38, in the case of an eligible employer, the retirement auto-enrollment credit determined under this section for any taxable year is an amount equal to —

"(1) $500 for any taxable year occurring during the credit period, and

"(2) zero for any other taxable year.

"(b) CREDIT PERIOD. — For purposes of subsection (a) —

"(1) IN GENERAL. — The credit period with respect to any eligible employer is the 3-taxable-year period beginning with the first taxable year for which the employer includes an eligible automatic contribution arrangement (as defined in section 414(w)(3)) in a qualified employer plan (as defined in section 4972(d)) sponsored by the employer.

"(2) MAINTENANCE OF ARRANGEMENT. — No taxable year with respect to an employer shall be treated as occurring within the credit period unless the arrangement described in para-graph (1) is included in the plan for such year.

"(c) ELIGIBLE EMPLOYER. — For purposes of this section, the term 'eligible employer' has the meaning given such term in section 408(p)(2)(C)(i).".

(b) CREDIT TO BE PART OF GENERAL BUSINESS CREDIT. — Subsection (b) of section 38 of the Internal Revenue Code of 1986 is amended by striking "plus" at the end of paragraph (31), by striking the period at the end of paragraph (32) and inserting ", plus", and by adding at the end the following new paragraph:

"(33) in the case of an eligible employer (as defined in section 45T(c)), the retirement auto-enrollment credit deter-mined under section 45T(a).".

(c) CLERICAL AMENDMENT. — The table of sections for subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 45S the following new item:

"Sec. 45T. Auto-enrollment option for retirement savings options provided by small employers.".

(d) EFFECTIVE DATE. — The amendments made by this section shall apply to taxable years beginning after December 31, 2019.

SEC. 106. CERTAIN TAXABLE NON-TUITION FELLOWSHIP AND STIPEND PAYMENTS TREATED AS COMPENSATION FOR IRA PUR-POSES.

(a) IN GENERAL. — Paragraph (1) of section 219(f) of the Internal Revenue Code of 1986 is amended by adding at the end the fol-lowing: "The term 'compensation' shall include any amount which is included in the individual's gross income and paid to the individual to aid the individual in the pursuit of graduate or postdoctoral study.".

(b) EFFECTIVE DATE. — The amendment made by this section shall apply to taxable years beginning after December 31, 2019.

SEC. 107. REPEAL OF MAXIMUM AGE FOR TRADITIONAL IRA CONTRIBUTIONS.

(a) IN GENERAL. — Paragraph (1) of section 219(d) of the Internal Revenue Code of 1986 is repealed.

(b) COORDINATION WITH QUALIFIED CHARITABLE DISTRIBUTIONS. — Add at the end of section 408(d)(8)(A) of such Code the following: "The amount of distributions not includible in gross income by reason of the preceding sentence for a taxable year (determined without regard to this sentence) shall be reduced (but not below zero) by an amount equal to the excess of —

"(i) the aggregate amount of deductions allowed to the taxpayer under section 219 for all taxable years ending on or after the date the taxpayer attains age 70¹⁄2, over

"(ii) the aggregate amount of reductions under this sentence for all taxable years preceding the current taxable year.".

(c) CONFORMING AMENDMENT. — Subsection (c) of section 408A of the Internal Revenue Code of 1986 is amended by striking paragraph (4) and by redesignating paragraphs (5), (6), and (7) as paragraphs (4), (5), and (6), respectively.

(d) EFFECTIVE DATE. —

(1) IN GENERAL. — Except as provided in paragraph (2), the amendments made by this section shall apply to contributions made for taxable years beginning after December 31, 2019.

(2) SUBSECTION (b). — The amendment made by subsection (b) shall apply to distributions made for taxable years beginning after December 31, 2019.

SEC. 108. QUALIFIED EMPLOYER PLANS PROHIBITED FROM MAKING LOANS THROUGH CREDIT CARDS AND OTHER SIMILAR ARRANGEMENTS.

(a) IN GENERAL. — Paragraph (2) of section 72(p) of the Internal Revenue Code of 1986 is amended by redesignating subparagraph (D) as subparagraph (E) and by inserting after subparagraph (C) the following new subparagraph:

"(D) PROHIBITION OF LOANS THROUGH CREDIT CARDS AND OTHER SIMILAR ARRANGEMENTS. — Subparagraph(A) shall not apply to any loan which is made through the use of any credit card or any other similar arrangement.".

(b) EFFECTIVE DATE. — The amendments made by subsection (a) shall apply to loans made after the date of the enactment of this Act.

SEC. 109. PORTABILITY OF LIFETIME INCOME OPTIONS.

(a) IN GENERAL. — Subsection (a) of section 401 of the Internal Revenue Code of 1986 is amended by inserting after paragraph (37) the following new paragraph:

"(38) PORTABILITY OF LIFETIME INCOME. —

"(A) IN GENERAL. — Except as may be otherwise provided by regulations, a trust forming part of a defined contribution plan shall not be treated as failing to constitute a qualified trust under this section solely by reason of allowing —

"(i) qualified distributions of a lifetime income investment, or

"(ii) distributions of a lifetime income investment in the form of a qualified plan distribution annuity contract,

on or after the date that is 90 days prior to the date on which such lifetime income investment is no longer authorized to be held as an investment option under the plan.

"(B) DEFINITIONS. — For purposes of this subsection —

"(i) the term 'qualified distribution' means a direct trustee-to-trustee transfer described in paragraph (31)(A) to an eligible retirement plan (as defined in section 402(c)(8)(B)),

"(ii) the term 'lifetime income investment' means an investment option which is designed to provide an employee with election rights —

"(I) which are not uniformly available with respect to other investment options under the plan, and

"(II) which are to a lifetime income feature available through a contract or other arrangement offered under the plan (or under another eligible retirement plan (as so defined), if paid by means of a direct trustee-to-trustee transfer described in paragraph (31)(A) to such other eligible retirement plan),

"(iii) the term 'lifetime income feature' means —

"(I) a feature which guarantees a minimum level of income annually (or more frequently) for at least the remainder of the life of the employee or the joint lives of the employee and the employee's designated beneficiary, or

"(II) an annuity payable on behalf of the employee under which payments are made in substantially equal periodic payments (not less frequently than annually) over the life of the employee or the joint lives of the employee and the employee's designated beneficiary, and

"(iv) the term 'qualified plan distribution annuity contract' means an annuity contract purchased for a participant and distributed to the participant by a plan or contract described in subparagraph (B) of section 402(c)(8) (without regard to clauses (i) and (ii) thereof).".

(b) CASH OR DEFERRED ARRANGEMENT. —

(1) IN GENERAL. — Clause (i) of section 401(k)(2)(B) of the Internal Revenue Code of 1986 is amended by striking "or" at the end of subclause (IV), by striking "and" at the end of subclause (V) and inserting "or", and by adding at the end the following new subclause:

"(VI) except as may be otherwise provided by regulations, with respect to amounts invested in a lifetime income investment (as defined in subsection (a)(38)(B)(ii)), the date that is 90 days prior to the date that such lifetime income investment may no longer be held as an investment option under the arrangement, and".

(2) DISTRIBUTION REQUIREMENT. — Subparagraph (B) of section 401(k)(2) of such Code, as amended by paragraph (1), is amended by striking "and" at the end of clause (i), by striking the semicolon at the end of clause (ii) and inserting ", and", and by adding at the end the following new clause:

"(iii) except as may be otherwise provided by regulations, in the case of amounts described in clause (i)(VI), will be distributed only in the form of a qualified distribution (as defined in subsection (a)(38)(B)(i)) or a qualified plan distribution annuity contract (as defined in subsection (a)(38)(B)(iv)),".

(1) ANNUITY CONTRACTS. — Paragraph (11) of section 403(b) of the Internal Revenue Code of 1986 is amended by striking "or" at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting ", or", and by inserting after subparagraph (C) the following new subparagraph:

"(D) except as may be otherwise provided by regulations, with respect to amounts invested in a lifetime income investment (as defined in section 401(a)(38)(B)(ii)) —

"(i) on or after the date that is 90 days prior to the date that such lifetime income investment may no longer be held as an investment option under the contract, and

"(ii) in the form of a qualified distribution (as defined in section 401(a)(38)(B)(i)) or a qualified plan distribution annuity contract (as defined in section 401(a)(38)(B)(iv)).".

(2) CUSTODIAL ACCOUNTS. — Subparagraph (A) of section 403(b)(7) of such Code is amended by striking "if — " and all that follows and inserting "if the amounts are to be invested in regulated investment company stock to be held in that custodial account, and under the custodial account —

"(i) no such amounts may be paid or made avail-able to any distributee (unless such amount is a dis-tribution to which section 72(t)(2)(G) applies) before —

"(I) the employee dies,

"(II) the employee attains age 59¹⁄2,

"(III) the employee has a severance from employment,

"(IV) the employee becomes disabled (within the meaning of section 72(m)(7)),

"(V) in the case of contributions made pursuant to a salary reduction agreement (within the meaning of section 3121(a)(5)(D)), the employee encounters financial hardship, or

"(VI) except as may be otherwise provided by regulations, with respect to amounts invested in a lifetime income investment (as defined in section 401(a)(38)(B)(ii)), the date that is 90 days prior to the date that such lifetime income investment may no longer be held as an investment option under the contract, and

"(ii) in the case of amounts described in clause (i)(VI), such amounts will be distributed only in the form of a qualified distribution (as defined in section 401(a)(38)(B)(i)) or a qualified plan distribution annuity contract (as defined in section 401(a)(38)(B)(iv)).".

(d) ELIGIBLE DEFERRED COMPENSATION PLANS. —

(1) IN GENERAL. — Subparagraph (A) of section 457(d)(1) of the Internal Revenue Code of 1986 is amended by striking "or" at the end of clause (ii), by inserting "or" at the end of clause (iii), and by adding after clause (iii) the following:

"(iv) except as may be otherwise provided by regulations, in the case of a plan maintained by an employer described in subsection (e)(1)(A), with respect to amounts invested in a lifetime income investment (as defined in section 401(a)(38)(B)(ii)), the date that is 90 days prior to the date that such lifetime income investment may no longer be held as an investment option under the plan,".

(2) DISTRIBUTION REQUIREMENT. — Paragraph (1) of section 457(d) of such Code 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 inserting after subparagraph (C) the following new subparagraph:

"(D) except as may be otherwise provided by regulations, in the case of amounts described in subparagraph (A)(iv), such amounts will be distributed only in the form of a qualified distribution (as defined in section 401(a)(38)(B)(i)) or a qualified plan distribution annuity contract (as defined in section 401(a)(38)(B)(iv)).".

(e) EFFECTIVE DATE. — The amendments made by this section shall apply to plan years beginning after December 31, 2019.

SEC. 110. TREATMENT OF CUSTODIAL ACCOUNTS ON TERMINATION OF SECTION 403(b) PLANS.

Not later than six months after the date of enactment of this Act, the Secretary of the Treasury shall issue guidance to provide that, if an employer terminates the plan under which amounts are contributed to a custodial account under subparagraph (A) of section 403(b)(7), the plan administrator or custodian may dis-tribute an individual custodial account in kind to a participant or beneficiary of the plan and the distributed custodial account shall be maintained by the custodian on a tax-deferred basis as a section 403(b)(7) custodial account, similar to the treatment of fully-paid individual annuity contracts under Revenue Ruling 2011-7, until amounts are actually paid to the participant or beneficiary. The guidance shall provide further (i) that the section 403(b)(7) status of the distributed custodial account is generally maintained if the custodial account thereafter adheres to the requirements of section 403(b) that are in effect at the time of the distribution of the account and (ii) that a custodial account would not be considered distributed to the participant or beneficiary if the employer has any material retained rights under the account (but the employer would not be treated as retaining material rights simply because the custodial account was originally opened under a group contract). Such guidance shall be retroactively effective for taxable years beginning after December 31, 2008.

SEC. 111. CLARIFICATION OF RETIREMENT INCOME ACCOUNT RULES RELATING TO CHURCH-CONTROLLED ORGANIZATIONS.

(a) IN GENERAL. — Subparagraph (B) of section 403(b)(9) of the Internal Revenue Code of 1986 is amended by inserting "(including an employee described in section 414(e)(3)(B))" after "employee described in paragraph (1)".

(b) EFFECTIVE DATE. — The amendment made by this section shall apply to years beginning before, on, or after the date of the enactment of this Act.

SEC. 112. QUALIFIED CASH OR DEFERRED ARRANGEMENTS MUST ALLOW LONG-TERM EMPLOYEES WORKING MORE THAN 500 BUT LESS THAN 1,000 HOURS PER YEAR TO PARTICIPATE.

(a) PARTICIPATION REQUIREMENT. —

(1) IN GENERAL. — Section 401(k)(2)(D) of the Internal Revenue Code of 1986 is amended to read as follows:

"(D) which does not require, as a condition of participation in the arrangement, that an employee complete a period of service with the employer (or employers) maintaining the plan extending beyond the close of the earlier of —

"(i) the period permitted under section 410(a)(1) (determined without regard to subparagraph (B)(i) thereof), or

"(ii) subject to the provisions of paragraph (15), the first period of 3 consecutive 12-month periods during each of which the employee has at least 500 hours of service.".

(2) SPECIAL RULES. — Section 401(k) of such Code is amended by adding at the end the following new paragraph:

"(15) SPECIAL RULES FOR PARTICIPATION REQUIREMENT FOR LONG-TERM, PART-TIME WORKERS. — For purposes of paragraph (2)(D)(ii) —

"(A) AGE REQUIREMENT MUST BE MET. — Paragraph (2)(D)(ii) shall not apply to an employee unless the employee has met the requirement of section 410(a)(1)(A)(i) by the close of the last of the 12-month periods described in such paragraph.

"(B) NONDISCRIMINATION AND TOP-HEAVY RULES NOT TO APPLY. —

"(i) NONDISCRIMINATION RULES. — In the case of employees who are eligible to participate in the arrangement solely by reason of paragraph (2)(D)(ii) —

"(I) notwithstanding subsection (a)(4),an employer shall not be required to make nonelective or matching contributions on behalf of such employees even if such contributions are made on behalf of other employees eligible to participate in the arrangement, and

"(II) an employer may elect to exclude such employees from the application of subsection (a)(4), paragraphs (3), (12), and (13), subsection (m)(2), and section 410(b).

"(ii) TOP-HEAVY RULES. — An employer may elect to exclude all employees who are eligible to participate in a plan maintained by the employer solely by reason of paragraph (2)(D)(ii) from the application of the vesting and benefit requirements under subsections (b) and (c) of section 416.

"(iii) VESTING. — For purposes of determining whether an employee described in clause (i) has a nonforfeitable right to employer contributions (other than contributions described in paragraph (3)(D)(i)) under the arrangement, each 12-month period for which the employee has at least 500 hours of service shall be treated as a year of service, and section 411(a)(6) shall be applied by substituting 'at least 500 hours of service' for 'more than 500 hours of service' in subparagraph (A) thereof.

"(iv) EMPLOYEES WHO BECOME FULL-TIME EMPLOYEES. — This subparagraph (other than clause (iii)) shall cease to apply to any employee as of the first plan year beginning after the plan year in which the employee meets the requirements of section 410(a)(1)(A)(ii) without regard to paragraph (2)(D)(ii).

"(C) EXCEPTION FOR EMPLOYEES UNDER COLLECTIVELY BARGAINED PLANS,ETC. — Paragraph(2)(D)(ii) shall not apply to employees described in section 410(b)(3).

"(D) SPECIAL RULES. —

"(i) TIME OF PARTICIPATION. — The rules of section 410(a)(4) shall apply to an employee eligible to participate in an arrangement solely by reason of paragraph (2)(D)(ii).

"(ii) 12-MONTH PERIODS. — 12-month periods shall be determined in the same manner as under the last sentence of section 410(a)(3)(A).".

(b) EFFECTIVE DATE. — The amendments made by this section shall apply to plan years beginning after December 31, 2020, except that, for purposes of section 401(k)(2)(D)(ii) of the Internal Revenue Code of 1986 (as added by such amendments), 12-month periods beginning before January 1, 2021, shall not be taken into account.

SEC. 113. PENALTY-FREE WITHDRAWALS FROM RETIREMENT PLANS FOR INDIVIDUALS IN CASE OF BIRTH OF CHILD OR ADOPTION.

(a) IN GENERAL. — Section 72(t)(2) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

"(H) DISTRIBUTIONS FROM RETIREMENT PLANS IN CASE OF BIRTH OF CHILD OR ADOPTION. —

"(i) IN GENERAL. — Any qualified birth or adoption distribution.

"(ii) LIMITATION. — The aggregate amount which may be treated as qualified birth or adoption distributions by any individual with respect to any birth or adoption shall not exceed $5,000.

"(iii) QUALIFIED BIRTH OR ADOPTION DISTRIBUTION. — For purposes of this subparagraph —

"(I) IN GENERAL. — The term 'qualified birth or adoption distribution' means any distribution from an applicable eligible retirement plan to an individual if made during the 1-year period beginning on the date on which a child of the individual is born or on which the legal adoption by the individual of an eligible adoptee is finalized.

"(II) ELIGIBLE ADOPTEE. — The term 'eligible adoptee' means any individual (other than a child of the taxpayer's spouse) who has not attained age 18 or is physically or mentally incapable of self-support.

"(iv) TREATMENT OF PLAN DISTRIBUTIONS. —

"(I) IN GENERAL. — If a distribution to an individual would (without regard to clause (ii)) be a H. R. 1865 — 622 qualified birth or adoption distribution, a plan shall not be treated as failing to meet any requirement of this title merely because the plan treats the distribution as a qualified birth or adoption distribution, unless the aggregate amount of such distributions from all plans maintained by the employer (and any member of any controlled group which includes the employer) to such individual exceeds $5,000.

"(II) CONTROLLED GROUP. — For purposes of subclause (I), the term 'controlled group' means any group treated as a single employer under subsection (b), (c), (m), or (o) of section 414.

"(v) AMOUNT DISTRIBUTED MAY BE REPAID. —

"(I) IN GENERAL. — Any individual who receives a qualified birth or adoption distribution may make one or more contributions in an aggregate amount not to exceed the amount of such distribution to an applicable eligible retirement plan of which such individual is a beneficiary and to which a rollover contribution of such distribution could be made under section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16), as the case may be.

"(II) LIMITATION ON CONTRIBUTIONS TO APPLICABLE ELIGIBLE RETIREMENT PLANS OTHER THAN IRAS. — The aggregate amount of contributions made by an individual under subclause (I) to any applicable eligible retirement plan which is not an individual retirement plan shall not exceed the aggregate amount of qualified birth or adoption distributions which are made from such plan to such individual. Subclause (I) shall not apply to contributions to any applicable eligible retirement plan which is not an individual retirement plan unless the individual is eligible to make contributions (other than those described in subclause (I)) to such applicable eligible retirement plan.

"(III) TREATMENT OF REPAYMENTS OF DISTRIBUTIONS FROM APPLICABLE ELIGIBLE RETIREMENT PLANS OTHER THAN IRAs. — If a contribution is made under subclause (I) with respect to a qualified birth or adoption distribution from an applicable eligible retirement plan other than an individual retirement plan, then the taxpayer shall, to the extent of the amount of the contribution, be treated as having received such distribution in an eligible rollover distribution (as defined in section 402(c)(4)) and as having transferred the amount to the applicable eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.

"(IV) TREATMENT OF REPAYMENTS FOR DISTRIBUTIONS FROM IRAS. — If a contribution is made under subclause (I) with respect to a qualified birth or adoption distribution from an individual retirement plan, then, to the extent of the amount of the contribution, such distribution shall be treated as a distribution described in section 408(d)(3) and as having been transferred to the applicable eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.

"(vi) DEFINITION AND SPECIAL RULES. — For purposes of this subparagraph —

"(I) APPLICABLE ELIGIBLE RETIREMENT PLAN. — The term 'applicable eligible retirement plan' means an eligible retirement plan (as defined in section 402(c)(8)(B)) other than a defined benefit plan.

"(II) EXEMPTION OF DISTRIBUTIONS FROM TRUSTEE TO TRUSTEE TRANSFER AND WITHHOLDING RULES. — For purposes of sections 401(a)(31), 402(f), and 3405, a qualified birth or adoption distribution shall not be treated as an eligible rollover distribution.

"(III) TAXPAYER MUST INCLUDE TIN. — A distribution shall not be treated as a qualified birth or adoption distribution with respect to any child or eligible adoptee unless the taxpayer includes the name, age, and TIN of such child or eligible adoptee on the taxpayer's return of tax for the taxable year.

"(IV) DISTRIBUTIONS TREATED AS MEETING PLAN DISTRIBUTION REQUIREMENTS. — Any qualified birth or adoption distribution shall be treated as meeting the requirements of sections 401(k)(2)(B)(i), 403(b)(7)(A)(ii), 403(b)(11), and 457(d)(1)(A).".

(b) EFFECTIVE DATE. — The amendments made by this section shall apply to distributions made after December 31, 2019.

SEC. 114. INCREASE IN AGE FOR REQUIRED BEGINNING DATE FOR MANDATORY DISTRIBUTIONS.

(a) IN GENERAL. — Section 401(a)(9)(C)(i)(I) of the Internal Revenue Code of 1986 is amended by striking "age 70¹⁄2" and inserting "age 72".

(b) SPOUSE BENEFICIARIES; SPECIAL RULE FOR OWNERS. — Subparagraphs (B)(iv)(I) and (C)(ii)(I) of section 401(a)(9) of such Code are each amended by striking "age 70¹⁄2" and inserting "age 72".

(c) CONFORMING AMENDMENTS. — The last sentence of section 408(b) of such Code is amended by striking "age 70¹⁄2" and inserting "age 72".

(d) EFFECTIVE DATE. — The amendments made by this section shall apply to distributions required to be made after December 31, 2019, with respect to individuals who attain age 70¹⁄2 after such date.

SEC. 115. SPECIAL RULES FOR MINIMUM FUNDING STANDARDS FOR COMMUNITY NEWSPAPER PLANS.

(a) AMENDMENT TO INTERNAL REVENUE CODE OF 1986. — Section 430 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

"(m) SPECIAL RULES FOR COMMUNITY NEWSPAPER PLANS. —

"(1) IN GENERAL. — The plan sponsor of a community news-paper plan under which no participant has had the participant's accrued benefit increased (whether because of service or compensation) after December 31, 2017, may elect to have the alternative standards described in paragraph (3) apply to such plan, and any plan sponsored by any member of the same controlled group.

"(2) ELECTION. — An election under paragraph (1) shall be made at such time and in such manner as prescribed by the Secretary. Such election, once made with respect to a plan year, shall apply to all subsequent plan years unless revoked with the consent of the Secretary.

"(3) ALTERNATIVE MINIMUM FUNDING STANDARDS. — The alternative standards described in this paragraph are the following:

"(A) INTEREST RATES. —

"(i) IN GENERAL. — Notwithstanding subsection (h)(2)(C) and except as provided in clause (ii), the first, second, and third segment rates in effect for any month for purposes of this section shall be 8 percent.

"(ii) NEW BENEFIT ACCRUALS. — Notwithstanding subsection (h)(2), for purposes of determining the funding target and normal cost of a plan for any plan year, the present value of any benefits accrued or earned under the plan for a plan year with respect to which an election under paragraph (1) is in effect shall be determined on the basis of the United States Treasury obligation yield curve for the day that is the valuation date of such plan for such plan year.

"(iii) UNITED STATES TREASURY OBLIGATION YIELD CURVE. — For purposes of this subsection, the term 'United States Treasury obligation yield curve' means, with respect to any day, a yield curve which shall be prescribed by the Secretary for such day on interest-bearing obligations of the United States.

"(B) SHORTFALL AMORTIZATION BASE. —

"(i) PREVIOUS SHORTFALL AMORTIZATION BASES. — The shortfall amortization bases determined under subsection (c)(3) for all plan years preceding the first plan year to which the election under paragraph (1) applies (and all shortfall amortization installments determined with respect to such bases) shall be reduced to zero under rules similar to the rules of subsection (c)(6).

"(ii) NEW SHORTFALL AMORTIZATION BASE. — Notwithstanding subsection (c)(3), the shortfall amortization base for the first plan year to which the election under paragraph (1) applies shall be the funding shortfall of such plan for such plan year (determined using the interest rates as modified under subparagraph (A)).

"(C) DETERMINATION OF SHORTFALL AMORTIZATION INSTALLMENTS. —

"(i) 30-YEAR PERIOD. — Subparagraphs (A) and (B) of subsection (c)(2) shall be applied by substituting '30-plan-year' for '7-plan-year' each place it appears.

"(ii) NO SPECIAL ELECTION. — The election under subparagraph (D) of subsection (c)(2) shall not apply to any plan year to which the election under paragraph (1) applies.

"(D) EXEMPTION FROM AT-RISK TREATMENT. — Subsection (i) shall not apply.

"(4) COMMUNITY NEWSPAPER PLAN. — For purposes of this subsection —

"(A) IN GENERAL. — The term 'community newspaper plan' means a plan to which this section applies maintained by an employer which, as of December 31, 2017 —

"(i) publishes and distributes daily, either electronically or in printed form, 1 or more community newspapers in a single State,

"(ii) is not a company the stock of which is publicly traded (on a stock exchange or in an over-the-counter market), and is not controlled, directly or indirectly, by such a company,

"(iii) is controlled, directly or indirectly —

"(I) by 1 or more persons residing primarily in the State in which the community newspaper is published,

"(II) for not less than 30 years by individuals who are members of the same family,

"(III) by a trust created or organized in the State in which the community newspaper is published, the sole trustees of which are persons described in subclause (I) or (II),

"(IV) by an entity which is described in section 501(c)(3) and exempt from taxation under section 501(a), which is organized and operated in the State in which the community newspaper is published, and the primary purpose of which is to benefit communities in such State, or

"(V) by a combination of persons described in subclause (I), (III), or (IV), and

"(iv) does not control, directly or indirectly, any newspaper in any other State.

"(B) COMMUNITY NEWSPAPER. — The term 'community newspaper' means a newspaper which primarily serves a metropolitan statistical area, as determined by the Office of Management and Budget, with a population of not less than 100,000.

"(C) CONTROL. — A person shall be treated as controlled by another person if such other person possesses, directly or indirectly, the power to direct or cause the direction and management of such person (including the power to elect a majority of the members of the board of directors of such person) through the ownership of voting securities.

"(5) CONTROLLED GROUP. — For purposes of this subsection, the term 'controlled group' means all persons treated as a single employer under subsection (b), (c), (m), or (o) of section 414 as of the date of the enactment of this subsection.".

(b) AMENDMENT TO EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974. — Section 303 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1083) is amended by adding at the end the following new subsection:

"(m) SPECIAL RULES FOR COMMUNITY NEWSPAPER PLANS. —

"(2) ELECTION. — An election under paragraph (1) shall be made at such time and in such manner as prescribed by the Secretary of the Treasury. Such election, once made with respect to a plan year, shall apply to all subsequent plan years unless revoked with the consent of the Secretary of the Treasury.

"(3) ALTERNATIVE MINIMUM FUNDING STANDARDS. — The alternative standards described in this paragraph are the following:

"(A) INTEREST RATES. —

"(iii) UNITED STATES TREASURY OBLIGATION YIELD CURVE. — For purposes of this subsection, the term 'United States Treasury obligation yield curve' means, with respect to any day, a yield curve which shall be prescribed by the Secretary of the Treasury for such day on interest-bearing obligations of the United States.

"(B) SHORTFALL AMORTIZATION BASE. —

"(C) DETERMINATION OF SHORTFALL AMORTIZATION INSTALLMENTS. —

"(i) 30-YEAR PERIOD. — Subparagraphs (A) and (B) of subsection (c)(2) shall be applied by substituting '30-plan-year' for '7-plan-year' each place it appears.

"(ii) NO SPECIAL ELECTION. — The election under subparagraph (D) of subsection (c)(2) shall not apply to any plan year to which the election under paragraph (1) applies.

"(D) EXEMPTION FROM AT-RISK TREATMENT. — Subsection (i) shall not apply.

"(4) COMMUNITY NEWSPAPER PLAN. — For purposes of this subsection —

"(A) IN GENERAL. — The term 'community newspaper plan' means a plan to which this section applies maintained by an employer which, as of December 31, 2017 —

"(i) publishes and distributes daily, either electronically or in printed form —

"(I) a community newspaper, or

"(II) 1 or more community newspapers in the same State,

"(ii) is not a company the stock of which is publicly traded (on a stock exchange or in an over-the-counter market), and is not controlled, directly or indirectly, by such a company,

"(iii) is controlled, directly or indirectly —

"(I) by 1 or more persons residing primarily in the State in which the community newspaper is published,

"(II) for not less than 30 years by individuals who are members of the same family,

"(III) by a trust created or organized in the State in which the community newspaper is published, the sole trustees of which are persons described in subclause (I) or (II),

"(IV) by an entity which is described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code, which is organized and operated in the State in which the community newspaper is published, and the primary purpose of which is to benefit communities in such State, or

"(V) by a combination of persons described in subclause (I), (III), or (IV), and

"(iv) does not control, directly or indirectly, any newspaper in any other State.

"(5) CONTROLLED GROUP. — For purposes of this subsection, the term 'controlled group' means all persons treated as a single employer under subsection (b), (c), (m), or (o) of section 414 of the Internal Revenue Code of 1986 as of the date of the enactment of this subsection.

"(6) EFFECT ON PREMIUM RATE CALCULATION. — Notwithstanding any other provision of law or any regulation issued by the Pension Benefit Guaranty Corporation, in the case of a plan for which an election is made to apply the alternative standards described in paragraph (3), the additional premium under section 4006(a)(3)(E) shall be determined as if such election had not been made.".

SEC. 116. TREATING EXCLUDED DIFFICULTY OF CARE PAYMENTS AS COMPENSATION FOR DETERMINING RETIREMENT CONTRIBUTION LIMITATIONS.

(a) INDIVIDUAL RETIREMENT ACCOUNTS. —

(1) IN GENERAL. — Section 408(o) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

"(5) SPECIAL RULE FOR DIFFICULTY OF CARE PAYMENTS EXCLUDED FROM GROSS INCOME. — In the case of an individual who for a taxable year excludes from gross income under section 131 a qualified foster care payment which is a difficulty of care payment, if —

"(A) the deductible amount in effect for the taxable year under subsection (b), exceeds

"(B) the amount of compensation includible in the individual's gross income for the taxable year, the individual may elect to increase the nondeductible limit under paragraph (2) for the taxable year by an amount equal to the lesser of such excess or the amount so excluded.".

(2) EFFECTIVE DATE. — The amendments made by this subsection shall apply to contributions after the date of the enactment of this Act.

(b) DEFINED CONTRIBUTION PLANS. —

(3) IN GENERAL. — Section 415(c) of such Code is amended by adding at the end the following new paragraph:

"(8) SPECIAL RULE FOR DIFFICULTY OF CARE PAYMENTS EXCLUDED FROM GROSS INCOME. —

"(A) IN GENERAL. — For purposes of paragraph (1)(B), in the case of an individual who for a taxable year excludes from gross income under section 131 a qualified foster care payment which is a difficulty of care payment, the participant's compensation, or earned income, as the case may be, shall be increased by the amount so excluded.

"(B) CONTRIBUTIONS ALLOCABLE TO DIFFICULTY OF CARE PAYMENTS TREATED AS AFTER-TAX. — Any contribution by the participant which is allowable due to such increase —

"(i) shall be treated for purposes of this title as investment in the contract, and

"(ii) shall not cause a plan (and any arrangement which is part of such plan) to be treated as failing to meet any requirements of this chapter solely by reason of allowing any such contributions.".

(2) EFFECTIVE DATE. — The amendment made by this subsection shall apply to plan years beginning after December 31, 2015.

TITLE II — ADMINISTRATIVE IMPROVEMENTS

SEC. 201. PLAN ADOPTED BY FILING DUE DATE FOR YEAR MAY BE TREATED AS IN EFFECT AS OF CLOSE OF YEAR.

(a) IN GENERAL. — Subsection (b) of section 401 of the Internal Revenue Code of 1986 is amended —

(1) by striking "RETROACTIVE CHANGES IN PLAN. — A stock bonus" and inserting "PLAN AMENDMENTS. —

"(1) CERTAIN RETROACTIVE CHANGES IN PLAN. — A stock bonus"; and

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

"(2) ADOPTION OF PLAN. — If an employer adopts a stock bonus, pension, profit-sharing, or annuity plan after the close of a taxable year but before the time prescribed by law for filing the return of the employer for the taxable year (including extensions thereof), the employer may elect to treat the plan as having been adopted as of the last day of the taxable year.".

(b) EFFECTIVE DATE. — The amendments made by this section shall apply to plans adopted for taxable years beginning after December 31, 2019.

SEC. 202. COMBINED ANNUAL REPORT FOR GROUP OF PLANS.

(a) IN GENERAL. — The Secretary of the Treasury and the Secretary of Labor shall, in cooperation, modify the returns required under section 6058 of the Internal Revenue Code of 1986 and the reports required by section 104 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1024) so that all members of a group of plans described in subsection (c) may file a single aggregated annual return or report satisfying the requirements of both such sections.

(b) ADMINISTRATIVE REQUIREMENTS. — In developing the consolidated return or report under subsection (a), the Secretary of the Treasury and the Secretary of Labor may require such return or report to include any information regarding each plan in the group as such Secretaries determine is necessary or appropriate for the enforcement and administration of the Internal Revenue Code of 1986 and the Employee Retirement Income Security Act of 1974 and shall require such information as will enable a participant in a plan to identify any aggregated return or report filed with respect to the plan.

(1) are individual account plans or defined contribution plans (as defined in section 3(34) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002(34)) or in section 414(i) of the Internal Revenue Code of 1986);

(2) have —

(A) the same trustee (as described in section 403(a) of such Act (29 U.S.C. 1103(a)));

(B) the same one or more named fiduciaries (as described in section 402(a) of such Act (29 U.S.C. 1102(a)));

(C) the same administrator (as defined in section 3(16)(A) of such Act (29 U.S.C. 1002(16)(A))) and plan administrator (as defined in section 414(g) of the Internal Revenue Code of 1986); and

(D) plan years beginning on the same date; and

(3) provide the same investments or investment options to participants and beneficiaries.

A plan not subject to title I of the Employee Retirement Income Security Act of 1974 shall be treated as meeting the requirements of paragraph (2) as part of a group of plans if the same person that performs each of the functions described in such paragraph, as applicable, for all other plans in such group performs each of such functions for such plan.

(d) CLARIFICATION RELATING TO ELECTRONIC FILING OF RETURNS FOR DEFERRED COMPENSATION PLANS. —

(1) IN GENERAL. — Section 6011(e) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

"(6) APPLICATION OF NUMERICAL LIMITATION TO RETURNS RELATING TO DEFERRED COMPENSATION PLANS. — For purposes of applying the numerical limitation under paragraph (2)(A) to any return required under section 6058, information regarding each plan for which information is provided on such return shall be treated as a separate return.".

(2) EFFECTIVE DATE. — The amendment made by paragraph (1) shall apply to returns required to be filed with respect to plan years beginning after December 31, 2019.

(e) EFFECTIVE DATE. — The modification required by subsection (a) shall be implemented not later than January 1, 2022, and shall apply to returns and reports for plan years beginning after December 31, 2021.

SEC. 203. DISCLOSURE REGARDING LIFETIME INCOME.

(a) IN GENERAL. — Subparagraph (B) of section 105(a)(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1025(a)(2)) is amended —

(1) in clause (i), by striking "and" at the end;

(2) in clause (ii), by striking "diversification." and inserting "diversification, and"; and

(3) by inserting at the end the following:

"(iii) the lifetime income disclosure described in subparagraph (D)(i).

In the case of pension benefit statements described in clause (i) of paragraph (1)(A), a lifetime income disclosure under clause (iii) of this subparagraph shall be required to be included in only one pension benefit statement during any one 12-month period.".

(b) LIFETIME INCOME. — Paragraph (2) of section 105(a) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1025(a)) is amended by adding at the end the following new subparagraph:

"(D) LIFETIME INCOME DISCLOSURE. —

"(i) IN GENERAL. —

"(I) DISCLOSURE. — A lifetime income disclosure shall set forth the lifetime income stream equivalent of the total benefits accrued with respect to the participant or beneficiary.

"(II) LIFETIME INCOME STREAM EQUIVALENT OF THE TOTAL BENEFITS ACCRUED. — For purposes of this subparagraph, the term 'lifetime income stream equivalent of the total benefits accrued' means the amount of monthly payments the participant or beneficiary would receive if the total accrued benefits of such participant or beneficiary were used to provide lifetime income streams described in subclause (III), based on assumptions specified in rules prescribed by the Secretary.

"(III) LIFETIME INCOME STREAMS. — The lifetime income streams described in this subclause are a qualified joint and survivor annuity (as defined in section 205(d)), based on assumptions specified in rules prescribed by the Secretary, including the assumption that the participant or beneficiary has a spouse of equal age, and a single life annuity. Such lifetime income streams may have a term certain or other features to the extent permitted under rules prescribed by the Secretary.

"(ii) MODEL DISCLOSURE. — Not later than 1 year after the date of the enactment of the Setting Every Community Up for Retirement Enhancement Act of 2019, the Secretary shall issue a model lifetime income disclosure, written in a manner so as to be understood by the average plan participant, which —

"(I) explains that the lifetime income stream equivalent is only provided as an illustration;

"(II) explains that the actual payments under the lifetime income stream described in clause (i)(III) which may be purchased with the total benefits accrued will depend on numerous factors and may vary substantially from the lifetime income stream equivalent in the disclosures;

"(III) explains the assumptions upon which the lifetime income stream equivalent was determined; and

"(IV) provides such other similar explanations as the Secretary considers appropriate.

"(iii) ASSUMPTIONS AND RULES. — Not later than 1 year after the date of the enactment of the Setting Every Community Up for Retirement Enhancement Act of 2019, the Secretary shall —

"(I) prescribe assumptions which administrators of individual account plans may use in converting total accrued benefits into lifetime income stream equivalents for purposes of this subparagraph; and

"(II) issue interim final rules under clause (i). In prescribing assumptions under subclause (I), the Secretary may prescribe a single set of specific assumptions (in which case the Secretary may issue tables or factors which facilitate such conversions), or ranges of permissible assumptions. To the extent that an accrued benefit is or may be invested in a lifetime income stream described in clause (i)(III), the assumptions prescribed under subclause (I) shall, to the extent appropriate, permit administrators of individual account plans to use the amounts payable under such lifetime income stream as a lifetime income stream equivalent.

"(iv) LIMITATION ON LIABILITY. — No plan fiduciary, plan sponsor, or other person shall have any liability under this title solely by reason of the provision of lifetime income stream equivalents which are derived in accordance with the assumptions and rules described in clause (iii) and which include the explanations contained in the model lifetime income disclosure described in clause (ii). This clause shall apply without regard to whether the provision of such lifetime income stream equivalent is required by subparagraph (B)(iii).

"(v) EFFECTIVE DATE. — The requirement in subparagraph (B)(iii) shall apply to pension benefit statements furnished more than 12 months after the latest of the issuance by the Secretary of —

"(I) interim final rules under clause (i);

"(II) the model disclosure under clause (ii); or

"(III) the assumptions under clause (iii).".

SEC. 204. FIDUCIARY SAFE HARBOR FOR SELECTION OF LIFETIME INCOME PROVIDER.

Section 404 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1104) is amended by adding at the end the following:

"(e) SAFE HARBOR FOR ANNUITY SELECTION. —

"(1) IN GENERAL. — With respect to the selection of an insurer for a guaranteed retirement income contract, the requirements of subsection (a)(1)(B) will be deemed to be satisfied if a fiduciary —

"(A) engages in an objective, thorough, and analytical search for the purpose of identifying insurers from which to purchase such contracts;

"(B) with respect to each insurer identified under subparagraph (A) —

"(i) considers the financial capability of such insurer to satisfy its obligations under the guaranteed retirement income contract; and

"(ii) considers the cost (including fees and commissions) of the guaranteed retirement income contract offered by the insurer in relation to the benefits and product features of the contract and administrative services to be provided under such contract; and

"(C) on the basis of such consideration, concludes that —

"(i) at the time of the selection, the insurer is financially capable of satisfying its obligations under the guaranteed retirement income contract; and

"(ii) the relative cost of the selected guaranteed retirement income contract as described in subparagraph (B)(ii) is reasonable.

"(2) FINANCIAL CAPABILITY OF THE INSURER. — A fiduciary will be deemed to satisfy the requirements of paragraphs (1)(B)(i) and (1)(C)(i) if —

"(A) the fiduciary obtains written representations from the insurer that —

"(i) the insurer is licensed to offer guaranteed retirement income contracts;

"(ii) the insurer, at the time of selection and for each of the immediately preceding 7 plan years —

"(I) operates under a certificate of authority from the insurance commissioner of its domiciliary State which has not been revoked or suspended;

"(II) has filed audited financial statements in accordance with the laws of its domiciliary State under applicable statutory accounting principles;

"(III) maintains (and has maintained) reserves which satisfies all the statutory requirements of all States where the insurer does business; and

"(IV) is not operating under an order of supervision, rehabilitation, or liquidation;

"(iii) the insurer undergoes, at least every 5 years, a financial examination (within the meaning of the law of its domiciliary State) by the insurance commissioner of the domiciliary State (or representative, designee, or other party approved by such commissioner); and

"(iv) the insurer will notify the fiduciary of any change in circumstances occurring after the provision of the representations in clauses (i), (ii), and (iii) which would preclude the insurer from making such representations at the time of issuance of the guaranteed retirement income contract; and

"(B) after receiving such representations and as of the time of selection, the fiduciary has not received any notice described in subparagraph (A)(iv) and is in possession of no other information which would cause the fiduciary to question the representations provided.

"(3) NO REQUIREMENT TO SELECT LOWEST COST. — Nothing in this subsection shall be construed to require a fiduciary to select the lowest cost contract. A fiduciary may consider the value of a contract, including features and benefits of the contract and attributes of the insurer (including, without limitation, the insurer's financial strength) in conjunction with the cost of the contract.

"(4) TIME OF SELECTION. —

"(A) IN GENERAL. — For purposes of this subsection, the time of selection is —

"(i) the time that the insurer and the contract are selected for distribution of benefits to a specific participant or beneficiary; or

"(ii) if the fiduciary periodically reviews the continuing appropriateness of the conclusion described in paragraph (1)(C) with respect to a selected insurer, taking into account the considerations described in such paragraph, the time that the insurer and the contract are selected to provide benefits at future dates to participants or beneficiaries under the plan.

Nothing in the preceding sentence shall be construed to require the fiduciary to review the appropriateness of a selection after the purchase of a contract for a participant or beneficiary.

"(B) PERIODIC REVIEW. — A fiduciary will be deemed to have conducted the periodic review described in subparagraph (A)(ii) if the fiduciary obtains the written representations described in clauses (i), (ii), and (iii) of paragraph (2)(A) from the insurer on an annual basis, unless the fiduciary receives any notice described in paragraph (2)(A)(iv) or otherwise becomes aware of facts that would cause the fiduciary to question such representations.

"(5) LIMITED LIABILITY. — A fiduciary which satisfies the requirements of this subsection shall not be liable following the distribution of any benefit, or the investment by or on behalf of a participant or beneficiary pursuant to the selected guaranteed retirement income contract, for any losses that may result to the participant or beneficiary due to an insurer's inability to satisfy its financial obligations under the terms of such contract.

"(6) DEFINITIONS. — For purposes of this subsection —

"(A) INSURER. — The term 'insurer' means an insurance company, insurance service, or insurance organization, including affiliates of such companies.

"(B) GUARANTEED RETIREMENT INCOME CONTRACT. — The term 'guaranteed retirement income contract' means an annuity contract for a fixed term or a contract (or provision or feature thereof) which provides guaranteed benefits annually (or more frequently) for at least the remainder of the life of the participant or the joint lives of the participant and the participant's designated beneficiary as part of an individual account plan.".

SEC. 205. MODIFICATION OF NONDISCRIMINATION RULES TO PROTECT OLDER, LONGER SERVICE PARTICIPANTS.

(a) IN GENERAL. — Section 401 of the Internal Revenue Code of 1986 is amended —

(1) by redesignating subsection (o) as subsection (p); and

(2) by inserting after subsection (n) the following new subsection:

"(o) SPECIAL RULES FOR APPLYING NONDISCRIMINATION RULES TO PROTECT OLDER, LONGER SERVICE AND GRANDFATHERED PARTICIPANTS. —

"(1) TESTING OF DEFINED BENEFIT PLANS WITH CLOSED CLASSES OF PARTICIPANTS. —

"(A) BENEFITS, RIGHTS, OR FEATURES PROVIDED TO CLOSED CLASSES. — A defined benefit plan which provides benefits, rights, or features to a closed class of participants shall not fail to satisfy the requirements of subsection (a)(4) by reason of the composition of such closed class or the benefits, rights, or features provided to such closed class, if —

"(i) for the plan year as of which the class closes and the 2 succeeding plan years, such benefits, rights, and features satisfy the requirements of subsection (a)(4) (without regard to this subparagraph but taking into account the rules of subparagraph (I)),

"(ii) after the date as of which the class was closed, any plan amendment which modifies the closed class or the benefits, rights, and features provided to such closed class does not discriminate significantly in favor of highly compensated employees, and

"(iii) the class was closed before April 5, 2017, or the plan is described in subparagraph (C).

"(B) AGGREGATE TESTING WITH DEFINED CONTRIBUTION PLANS PERMITTED ON A BENEFITS BASIS. —

"(i) IN GENERAL. — For purposes of determining compliance with subsection (a)(4) and section 410(b), a defined benefit plan described in clause (iii) may be aggregated and tested on a benefits basis with 1 or more defined contribution plans, including with the portion of 1 or more defined contribution plans which —

"(I) provides matching contributions (as defined in subsection (m)(4)(A)),

"(II) provides annuity contracts described in section 403(b) which are purchased with matching contributions or nonelective contributions, or

"(III) consists of an employee stock ownership plan (within the meaning of section 4975(e)(7)) or a tax credit employee stock ownership plan (within the meaning of section 409(a)).

"(ii) SPECIAL RULES FOR MATCHING CONTRIBUTIONS. — For purposes of clause (i), if a defined benefit plan is aggregated with a portion of a defined contribution plan providing matching contributions —

"(I) such defined benefit plan must also be aggregated with any portion of such defined contribution plan which provides elective deferrals described in subparagraph (A) or (C) of section 402(g)(3), and

"(II) such matching contributions shall be treated in the same manner as nonelective contributions, including for purposes of applying the rules of subsection (l).

"(iii) PLANS DESCRIBED. — A defined benefit plan is described in this clause if —

"(I) the plan provides benefits to a closed class of participants,

"(II) for the plan year as of which the class closes and the 2 succeeding plan years, the plan satisfies the requirements of section 410(b) and subsection (a)(4) (without regard to this subparagraph but taking into account the rules of subparagraph (I)),

"(III) after the date as of which the class was closed, any plan amendment which modifies the closed class or the benefits provided to such closed class does not discriminate significantly in favor of highly compensated employees, and

"(IV) the class was closed before April 5, 2017, or the plan is described in subparagraph (C).

"(C) PLANS DESCRIBED. — A plan is described in this subparagraph if, taking into account any predecessor plan —

"(i) such plan has been in effect for at least 5 years as of the date the class is closed, and

"(ii) during the 5-year period preceding the date the class is closed, there has not been a substantial increase in the coverage or value of the benefits, rights, or features described in subparagraph (A) or in the coverage or benefits under the plan described in subparagraph (B)(iii) (whichever is applicable).

"(D) DETERMINATION OF SUBSTANTIAL INCREASE FOR BENEFITS, RIGHTS, AND FEATURES. — In applying subparagraph (C)(ii) for purposes of subparagraph (A)(iii), a plan shall be treated as having had a substantial increase in coverage or value of the benefits, rights, or features described in subparagraph (A) during the applicable 5-year period only if, during such period —

"(i) the number of participants covered by such benefits, rights, or features on the date such period ends is more than 50 percent greater than the number of such participants on the first day of the plan year in which such period began, or

"(ii) such benefits, rights, and features have been modified by 1 or more plan amendments in such a way that, as of the date the class is closed, the value of such benefits, rights, and features to the closed class as a whole is substantially greater than the value as of the first day of such 5-year period, solely as a result of such amendments.

"(E) DETERMINATION OF SUBSTANTIAL INCREASE FOR AGGREGATE TESTING ON BENEFITS BASIS. — In applying subparagraph(C)(ii) for purposes of subparagraph (B)(iii)(IV), a plan shall be treated as having had a substantial increase in coverage or benefits during the applicable 5-year period only if, during such period —

"(i) the number of participants benefitting under the plan on the date such period ends is more than 50 percent greater than the number of such participants on the first day of the plan year in which such period began, or

"(ii) the average benefit provided to such participants on the date such period ends is more than 50 percent greater than the average benefit provided on the first day of the plan year in which such period began.

"(F) CERTAIN EMPLOYEES DISREGARDED. — For purposes of subparagraphs (D) and (E), any increase in coverage or value or in coverage or benefits, whichever is applicable, which is attributable to such coverage and value or coverage and benefits provided to employees —

"(i) who became participants as a result of a merger, acquisition, or similar event which occurred during the 7-year period preceding the date the class is closed, or

"(ii) who became participants by reason of a merger of the plan with another plan which had been in effect for at least 5 years as of the date of the merger, shall be disregarded, except that clause (ii) shall apply for purposes of subparagraph (D) only if, under the merger, the benefits, rights, or features under 1 plan are conformed to the benefits, rights, or features of the other plan prospectively.

"(G) RULES RELATING TO AVERAGE BENEFIT. — For purposes of subparagraph (E) —

"(i) the average benefit provided to participants under the plan will be treated as having remained the same between the 2 dates described in subparagraph (E)(ii) if the benefit formula applicable to such participants has not changed between such dates, and

"(ii) if the benefit formula applicable to 1 or more participants under the plan has changed between such 2 dates, then the average benefit under the plan shall be considered to have increased by more than 50 percent only if —

"(I) the total amount determined under section 430(b)(1)(A)(i) for all participants benefitting under the plan for the plan year in which the 5-year period described in subparagraph (E) ends, exceeds

"(II) the total amount determined under section 430(b)(1)(A)(i) for all such participants for such plan year, by using the benefit formula in effect for each such participant for the first plan year in such 5-year period,

by more than 50 percent. In the case of a CSEC plan (as defined in section 414(y)), the normal cost of the plan (as determined under section 433(j)(1)(B)) shall be used in lieu of the amount determined under section 430(b)(1)(A)(i).

"(H) TREATMENT AS SINGLE PLAN. — For purposes of subparagraphs (E) and (G), a plan described in section 413(c) shall be treated as a single plan rather than as separate plans maintained by each employer in the plan.

"(I) SPECIAL RULES. — For purposes of subparagraphs (A)(i) and (B)(iii)(II), the following rules shall apply:

"(i) In applying section 410(b)(6)(C), the closing of the class of participants shall not be treated as a significant change in coverage under section 410(b)(6)(C)(i)(II).

"(ii) 2 or more plans shall not fail to be eligible to be aggregated and treated as a single plan solely by reason of having different plan years.

"(iii) Changes in the employee population shall be disregarded to the extent attributable to individuals who become employees or cease to be employees, after the date the class is closed, by reason of a merger, acquisition, divestiture, or similar event.

"(iv) Aggregation and all other testing methodologies otherwise applicable under subsection (a)(4) and section 410(b) may be taken into account.

The rule of clause (ii) shall also apply for purposes of determining whether plans to which subparagraph (B)(i) applies may be aggregated and treated as 1 plan for purposes of determining whether such plans meet the requirements of subsection (a)(4) and section 410(b).

"(J) SPUN-OFF PLANS. — For purposes of this paragraph, if a portion of a defined benefit plan described in subparagraph (A) or (B)(iii) is spun off to another employer and the spun-off plan continues to satisfy the requirements of —

"(i) subparagraph (A)(i) or (B)(iii)(II), whichever is applicable, if the original plan was still within the 3-year period described in such subparagraph at the time of the spin off, and

"(ii) subparagraph (A)(ii) or (B)(iii)(III), whichever is applicable, the treatment under subparagraph (A) or (B) of the spun-off plan shall continue with respect to such other employer.

"(2) TESTING OF DEFINED CONTRIBUTION PLANS. —

"(A) TESTING ON A BENEFITS BASIS. — A defined contribution plan shall be permitted to be tested on a benefits basis if —

"(i) such defined contribution plan provides make-whole contributions to a closed class of participants whose accruals under a defined benefit plan have been reduced or eliminated,

"(ii) for the plan year of the defined contribution plan as of which the class eligible to receive such make-whole contributions closes and the 2 succeeding plan years, such closed class of participants satisfies the requirements of section 410(b)(2)(A)(i) (determined by applying the rules of paragraph (1)(I)),

"(iii) after the date as of which the class was closed, any plan amendment to the defined contribution plan which modifies the closed class or the allocations, benefits, rights, and features provided to such closed class does not discriminate significantly in favor of highly compensated employees, and

"(iv) the class was closed before April 5, 2017, or the defined benefit plan under clause (i) is described in paragraph (1)(C) (as applied for purposes of paragraph (1)(B)(iii)(IV)).

"(B) AGGREGATION WITH PLANS INCLUDING MATCHING CONTRIBUTIONS. —

"(i) IN GENERAL. — With respect to 1 or more defined contribution plans described in subparagraph (A), for purposes of determining compliance with subsection (a)(4) and section 410(b), the portion of such plans which provides make-whole contributions or other nonelective contributions may be aggregated and tested on a benefits basis with the portion of 1 or more other defined contribution plans which —

"(I) provides matching contributions (as defined in subsection (m)(4)(A)),

"(II) provides annuity contracts described in section 403(b) which are purchased with matching contributions or nonelective contributions, or

"(III) consists of an employee stock ownership plan (within the meaning of section 4975(e)(7)) or a tax credit employee stock ownership plan (within the meaning of section 409(a)).

"(ii) SPECIAL RULES FOR MATCHING CONTRIBUTIONS. — Rules similar to the rules of paragraph (1)(B)(ii) shall apply for purposes of clause (i).

"(C) SPECIAL RULES FOR TESTING DEFINED CONTRIBUTION PLAN FEATURES PROVIDING MATCHING CONTRIBUTIONS TO CERTAIN OLDER, LONGER SERVICE PARTICIPANTS. — In the case of a defined contribution plan which provides benefits, rights, or features to a closed class of participants whose accruals under a defined benefit plan have been reduced or eliminated, the plan shall not fail to satisfy the requirements of subsection (a)(4) solely by reason of the composition of the closed class or the benefits, rights, or features provided to such closed class if the defined contribution plan and defined benefit plan otherwise meet the requirements of subparagraph (A) but for the fact that the make-whole contributions under the defined contribution plan are made in whole or in part through matching contributions.

"(D) SPUN-OFF PLANS. — For purposes of this paragraph, if a portion of a defined contribution plan described in subparagraph (A) or (C) is spun off to another employer, the treatment under subparagraph (A) or (C) of the spun-off plan shall continue with respect to the other employer if such plan continues to comply with the requirements of clauses (ii) (if the original plan was still within the 3-year period described in such clause at the time of the spin off) and (iii) of subparagraph (A), as determined for purposes of subparagraph (A) or (C), whichever is applicable.

"(3) DEFINITIONS AND SPECIAL RULE. — For purposes of this subsection —

"(A) MAKE-WHOLE CONTRIBUTIONS. — Except as otherwise provided in paragraph (2)(C), the term 'make-whole contributions' means nonelective allocations for each employee in the class which are reasonably calculated, in a consistent manner, to replace some or all of the retirement benefits which the employee would have received under the defined benefit plan and any other plan or qualified cash or deferred arrangement under subsection (k)(2) if no change had been made to such defined benefit plan and such other plan or arrangement. For purposes of the preceding sentence, consistency shall not be required with respect to employees who were subject to different benefit formulas under the defined benefit plan.

"(B) REFERENCES TO CLOSED CLASS OF PARTICIPANTS. — References to a closed class of participants and similar references to a closed class shall include arrangements under which 1 or more classes of participants are closed, except that 1 or more classes of participants closed on different dates shall not be aggregated for purposes of determining the date any such class was closed.

"(C) HIGHLY COMPENSATED EMPLOYEE. — The term 'highly compensated employee' has the meaning given such term in section 414(q).".

(b) PARTICIPATION REQUIREMENTS. — Paragraph (26) of section 401(a) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

"(I) PROTECTED PARTICIPANTS. —

"(i) IN GENERAL. — A plan shall be deemed to satisfy the requirements of subparagraph (A) if —

"(I) the plan is amended —

"(aa) to cease all benefit accruals, or

"(bb) to provide future benefit accruals only to a closed class of participants,

"(II) the plan satisfies subparagraph (A) (without regard to this subparagraph) as of the effective date of the amendment, and

"(III) the amendment was adopted before April 5, 2017, or the plan is described in clause (ii).

"(ii) PLANS DESCRIBED. — A plan is described in this clause if the plan would be described in subsection (o)(1)(C), as applied for purposes of subsection (o)(1)(B)(iii)(IV) and by treating the effective date of the amendment as the date the class was closed for purposes of subsection (o)(1)(C).

"(iii) SPECIAL RULES. — For purposes of clause (i)(II), in applying section 410(b)(6)(C), the amendments described in clause (i) shall not be treated as a significant change in coverage under section 10(b)(6)(C)(i)(II).

"(iv) SPUN-OFF PLANS. — For purposes of this subparagraph, if a portion of a plan described in clause

(i) is spun off to another employer, the treatment under clause (i) of the spun-off plan shall continue with respect to the other employer.".

(1) IN GENERAL. — Except as provided in paragraph (2), the amendments made by this section shall take effect on the date of the enactment of this Act, without regard to whether any plan modifications referred to in such amendments are adopted or effective before, on, or after such date of enactment.

(2) SPECIAL RULES. —

(A) ELECTION OF EARLIER APPLICATION. — At the election of the plan sponsor, the amendments made by this section shall apply to plan years beginning after December 31, 2013.

(B) CLOSED CLASSES OF PARTICIPANTS. — For purposes of paragraphs (1)(A)(iii), (1)(B)(iii)(IV), and (2)(A)(iv) of section 401(o) of the Internal Revenue Code of 1986 (as added by this section), a closed class of participants shall be treated as being closed before April 5, 2017, if the plan sponsor's intention to create such closed class is reflected in formal written documents and communicated to participants before such date.

(C) CERTAIN POST-ENACTMENT PLAN AMENDMENTS. — A plan shall not be treated as failing to be eligible for the application of section 401(o)(1)(A), 401(o)(1)(B)(iii), or 401(a)(26) of such Code (as added by this section) to such plan solely because in the case of —

(i) such section 401(o)(1)(A), the plan was amended before the date of the enactment of this Act to eliminate 1 or more benefits, rights, or features, and is further amended after such date of enactment to provide such previously eliminated benefits, rights, or features to a closed class of participants, or

(ii) such section 401(o)(1)(B)(iii) or section 401(a)(26), the plan was amended before the date of the enactment of this Act to cease all benefit accruals, and is further amended after such date of enactment to provide benefit accruals to a closed class of participants.

Any such section shall only apply if the plan otherwise meets the requirements of such section and in applying such section, the date the class of participants is closed shall be the effective date of the later amendment.

SEC. 206. MODIFICATION OF PBGC PREMIUMS FOR CSEC PLANS.

(a) FLAT RATE PREMIUM. — Subparagraph (A) of section 4006(a)(3) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1306(a)(3)) is amended —

(1) in clause (i), by striking "plan," and inserting "plan other than a CSEC plan (as defined in section 210(f)(1))";

(2) in clause (v), by striking "or" at the end;

(3) in clause (vi), by striking the period at the end and inserting ", or"; and

(4) by adding at the end the following new clause:

"(vii) in the case of a CSEC plan (as defined in section 210(f)(1)), for plan years beginning after December 31, 2018, for each individual who is a participant in such plan during the plan year an amount equal to the sum of —

"(I) the additional premium (if any) determined under subparagraph (E), and

"(II) $19.".

(b) VARIABLE RATE PREMIUM. —

(1) UNFUNDED VESTED BENEFITS. —

(A) IN GENERAL. — Subparagraph (E) of section 4006(a)(3) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1306(a)(3)) is amended by adding at the end the following new clause:

"(v) For purposes of clause (ii), in the case of a CSEC plan (as defined in section 210(f)(1)), the term 'unfunded vested benefits' means, for plan years beginning after December 31, 2018, the excess (if any) of —

"(I) the funding liability of the plan as determined under section 306(j)(5)(C) for the plan year by only taking into account vested benefits, over

"(II) the fair market value of plan assets for the plan year which are held by the plan on the valuation date.".

(B) CONFORMING AMENDMENT. — Clause (iii) of section 4006(a)(3)(E) of such Act (29 U.S.C. 1306(a)(3)(E)) is amended by striking "For purposes" and inserting "Except as provided in clause (v), for purposes".

(2) APPLICABLE DOLLAR AMOUNT. —

(A) IN GENERAL. — Paragraph (8) of section 4006(a) of such Act (29 U.S.C. 1306(a)) is amended by adding at the end the following new subparagraph:

"(E) CSEC PLANS. — In the case of a CSEC plan (as defined in section 210(f)(1)), the applicable dollar amount shall be $9.".

(B) CONFORMING AMENDMENT. — Subparagraph (A) of section 4006(a)(8) of such Act (29 U.S.C. 1306(a)(8)) is amended by striking "(B) and (C)" and inserting "(B), (C), and (E)".

TITLE III — OTHER BENEFITS

SEC. 301. BENEFITS PROVIDED TO VOLUNTEER FIREFIGHTERS AND EMERGENCY MEDICAL RESPONDERS.

(a) INCREASE IN DOLLAR LIMITATION ON QUALIFIED PAYMENTS. — Subparagraph (B) of section 139B(c)(2) of the Internal Revenue Code of 1986 is amended by striking "$30" and inserting "$50".

(b) EXTENSION. — Section 139B(d) of the Internal Revenue Code of 1986 is amended by striking "beginning after December 31, 2010." and inserting "beginning —

"(1) after December 31, 2010, and before January 1, 2020, or

"(2) after December 31, 2020.".

(c) TECHNICAL CORRECTION. — Section 3121(a)(23) of such Code is amended by striking "139B(b)" and inserting "section 139B(a)".

(d) EFFECTIVE DATE. — The amendments made by this section shall apply to taxable years beginning after December 31, 2019.

SEC. 302. EXPANSION OF SECTION 529 PLANS.

(a) DISTRIBUTIONS FOR CERTAIN EXPENSES ASSOCIATED WITH REGISTERED APPRENTICESHIP PROGRAMS. — Section 529(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

"(8) TREATMENT OF CERTAIN EXPENSES ASSOCIATED WITH REGISTERED APPRENTICESHIP PROGRAMS. — Any reference in this subsection to the term 'qualified higher education expense' shall include a reference to expenses for fees, books, supplies, and equipment required for the participation of a designated bene-ficiary in an apprenticeship program registered and certified with the Secretary of Labor under section 1 of the National Apprenticeship Act (29 U.S.C. 50).".

(b) DISTRIBUTIONS FOR QUALIFIED EDUCATION LOAN REPAYMENTS. —

(1) IN GENERAL. — Section 529(c) of such Code, as amended by subsection (a), is amended by adding at the end the following new paragraph:

"(9) TREATMENT OF QUALIFIED EDUCATION LOAN REPAYMENTS. —

"(A) IN GENERAL. — Any reference in this subsection to the term 'qualified higher education expense' shall include a reference to amounts paid as principal or interest on any qualified education loan (as defined in section 221(d)) of the designated beneficiary or a sibling of the designated beneficiary.

"(B) LIMITATION. — The amount of distributions treated as a qualified higher education expense under this paragraph with respect to the loans of any individual shall not exceed $10,000 (reduced by the amount of distributions so treated for all prior taxable years).

"(C) SPECIAL RULES FOR SIBLINGS OF THE DESIGNATED BENEFICIARY. —

"(i) SEPARATE ACCOUNTING. — For purposes of subparagraph (B) and subsection (d), amounts treated as a qualified higher education expense with respect to the loans of a sibling of the designated beneficiary shall be taken into account with respect to such sibling and not with respect to such designated beneficiary.

"(ii) SIBLING DEFINED. — For purposes of this paragraph, the term 'sibling' means an individual who bears a relationship to the designated beneficiary which is described in section 152(d)(2)(B).".

(2) COORDINATION WITH DEDUCTION FOR STUDENT LOAN INTEREST. — Section 221(e)(1) of such Code is amended by adding at the end the following: "The deduction otherwise allowable under subsection (a) (prior to the application of subsection (b)) to the taxpayer for any taxable year shall be reduced (but not below zero) by so much of the distributions treated as a qualified higher education expense under section 529(c)(9) with respect to loans of the taxpayer as would be includible in gross income under section 529(c)(3)(A) for such taxable year but for such treatment.".

TITLE IV — REVENUE PROVISIONS

SEC. 401. MODIFICATION OF REQUIRED DISTRIBUTION RULES FOR DESIGNATED BENEFICIARIES.

(a) MODIFICATION OF RULES WHERE EMPLOYEE DIES BEFORE ENTIRE DISTRIBUTION. —

(1) IN GENERAL. — Section 401(a)(9) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

"(H) SPECIAL RULES FOR CERTAIN DEFINED CONTRIBUTION PLANS. — In the case of a defined contribution plan, if an employee dies before the distribution of the employee's entire interest —

"(i) IN GENERAL. — Except in the case of a beneficiary who is not a designated beneficiary, subparagraph (B)(ii) —

"(I) shall be applied by substituting '10 years' for '5 years', and

"(II) shall apply whether or not distributions of the employee's interests have begun in accordance with subparagraph (A).

"(ii) EXCEPTION FOR ELIGIBLE DESIGNATED BENEFICIARIES. — Subparagraph (B)(iii) shall apply only in the case of an eligible designated beneficiary.

"(iii) RULES UPON DEATH OF ELIGIBLE DESIGNATED BENEFICIARY. — If an eligible designated beneficiary dies before the portion of the employee's interest to which this subparagraph applies is entirely distributed, the exception under clause (ii) shall not apply to any beneficiary of such eligible designated beneficiary and the remainder of such portion shall be distributed within 10 years after the death of such eligible designated beneficiary.

"(iv) SPECIAL RULE IN CASE OF CERTAIN TRUSTS FOR DISABLED OR CHRONICALLY ILL BENEFICIARIES. — In the case of an applicable multi-beneficiary trust, if under the terms of the trust —

"(I) it is to be divided immediately upon the death of the employee into separate trusts for each beneficiary, or

"(II) no individual (other than a eligible designated beneficiary described in subclause (III) or (IV) of subparagraph (E)(ii)) has any right to the employee's interest in the plan until the death of all such eligible designated beneficiaries with respect to the trust,

for purposes of a trust described in subclause (I), clause (ii) shall be applied separately with respect to the portion of the employee's interest that is payable to any eligible designated beneficiary described in subclause (III) or (IV) of subparagraph (E)(ii); and, for purposes of a trust described in subclause (II), subparagraph (B)(iii) shall apply to the distribution of the employee's interest and any beneficiary who is not such an eligible designated beneficiary shall be treated as a beneficiary of the eligible designated beneficiary upon the death of such eligible designated beneficiary.

"(v) APPLICABLE MULTI-BENEFICIARY TRUST. — For purposes of this subparagraph, the term 'applicable multi-beneficiary trust' means a trust —

"(I) which has more than one beneficiary,

"(II) all of the beneficiaries of which are treated as designated beneficiaries for purposes of determining the distribution period pursuant to this paragraph, and

"(III) at least one of the beneficiaries of which is an eligible designated beneficiary described in subclause (III) or (IV) of subparagraph (E)(ii).

"(vi) APPLICATION TO CERTAIN ELIGIBLE RETIREMENT PLANS. — For purposes of applying the provisions of this subparagraph in determining amounts required to be distributed pursuant to this paragraph, all eligible retirement plans (as defined in section 402(c)(8)(B), other than a defined benefit plan described in clause (iv) or (v) thereof or a qualified trust which is a part of a defined benefit plan) shall be treated as a defined contribution plan.".

(2) DEFINITION OF ELIGIBLE DESIGNATED BENEFICIARY. — Section 401(a)(9)(E) of such Code is amended to read as follows:

"(E) DEFINITIONS AND RULES RELATING TO DESIGNATED BENEFICIARIES. — For purposes of this paragraph —

"(i) DESIGNATED BENEFICIARY. — The term 'designated beneficiary' means any individual designated as a beneficiary by the employee.

"(ii) ELIGIBLE DESIGNATED BENEFICIARY. — The term 'eligible designated beneficiary' means, with respect to any employee, any designated beneficiary who is —

"(I) the surviving spouse of the employee,

"(II) subject to clause (iii), a child of the employee who has not reached majority (within the meaning of subparagraph (F)),

"(III) disabled (within the meaning of section 72(m)(7)),

"(IV) a chronically ill individual (within the of section 7702B(c)(2), except that the requirements of subparagraph (A)(i) thereof shall only be treated as met if there is a certification that, as of such date, the period of inability described in such subparagraph with respect to the individual is an indefinite one which is reasonably expected to be lengthy in nature), or

"(V) an individual not described in any of the preceding subclauses who is not more than 10 years younger than the employee.

The determination of whether a designated beneficiary is an eligible designated beneficiary shall be made as of the date of death of the employee.

"(iii) SPECIAL RULE FOR CHILDREN. — Subject to subparagraph (F), an individual described in clause (ii)(II) shall cease to be an eligible designated beneficiary as of the date the individual reaches majority and any remainder of the portion of the individual's interest to which subparagraph (H)(ii) applies shall be distributed within 10 years after such date.".

(b) EFFECTIVE DATES. —

(1) IN GENERAL. — Except as provided in this subsection, the amendments made by this section shall apply to distributions with respect to employees who die after December 31, 2019.

(2) COLLECTIVE BARGAINING EXCEPTION. — In the case of a plan maintained pursuant to 1 or more collective bargaining agreements between employee representatives and 1 or more employers ratified before the date of enactment of this Act, the amendments made by this section shall apply to distributions with respect to employees who die in calendar years beginning after the earlier of —

(A) the later of —

(i) the date on which the last of such collective bargaining agreements terminates (determined without regard to any extension thereof agreed to on or after the date of the enactment of this Act), or

(ii) December 31, 2019, or

For purposes of subparagraph (A)(i), any plan amendment made pursuant to a collective bargaining agreement relating to the plan which amends the plan solely to conform to any requirement added by this section shall not be treated as a termination of such collective bargaining agreement.

(3) GOVERNMENTAL PLANS. — In the case of a governmental plan (as defined in section 414(d) of the Internal Revenue Code of 1986), paragraph (1) shall be applied by substituting "December 31, 2021" for "December 31, 2019".

(4) EXCEPTION FOR CERTAIN EXISTING ANNUITY CONTRACTS. —

(A) IN GENERAL. — The amendments made by this section shall not apply to a qualified annuity which is a binding annuity contract in effect on the date of enactment of this Act and at all times thereafter.

(B) QUALIFIED ANNUITY. — For purposes of this paragraph, the term "qualified annuity" means, with respect to an employee, an annuity —

(i) which is a commercial annuity (as defined in section 3405(e)(6) of the Internal Revenue Code of 1986);

(ii) under which the annuity payments are made over the life of the employee or over the joint lives of such employee and a designated beneficiary (or over a period not extending beyond the life expectancy of such employee or the joint life expectancy of such employee and a designated beneficiary) in accordance with the regulations described in section 401(a)(9)(A)(ii) of such Code (as in effect before such amendments) and which meets the other requirements of section 401(a)(9) of such Code (as so in effect) with respect to such payments; and

(iii) with respect to which —

(I) annuity payments to the employee have begun before the date of enactment of this Act, and the employee has made an irrevocable election before such date as to the method and amount of the annuity payments to the employee or any designated beneficiaries; or

(II) if subclause (I) does not apply, the employee has made an irrevocable election before the date of enactment of this Act as to the method and amount of the annuity payments to the employee or any designated beneficiaries.

(5) EXCEPTION FOR CERTAIN BENEFICIARIES. —

(A) IN GENERAL. — If an employee dies before the effective date, then, in applying the amendments made by this section to such employee's designated beneficiary who dies after such date —

(i) such amendments shall apply to any beneficiary of such designated beneficiary; and

(ii) the designated beneficiary shall be treated as an eligible designated beneficiary for purposes of applying section 401(a)(9)(H)(ii) of the Internal Revenue Code of 1986 (as in effect after such amendments).

(B) EFFECTIVE DATE. — For purposes of this paragraph, the term "effective date" means the first day of the first calendar year to which the amendments made by this section apply to a plan with respect to employees dying on or after such date.

SEC. 402. INCREASE IN PENALTY FOR FAILURE TO FILE.

(a) IN GENERAL. — The second sentence of subsection (a) of section 6651 of the Internal Revenue Code of 1986 is amended by striking "$330" and inserting "$435".

(b) INFLATION ADJUSTMENT. — Section 6651(j)(1) of such Code is amended by striking "$330" and inserting "$435".

(c) EFFECTIVE DATE. — The amendments made by this section shall apply to returns the due date for which (including extensions) is after December 31, 2019.

SEC. 403. INCREASED PENALTIES FOR FAILURE TO FILE RETIREMENT PLAN RETURNS.

(a) IN GENERAL. — Subsection (e) of section 6652 of the Internal Revenue Code of 1986 is amended —

(1) by striking "$25" and inserting "$250"; and

(2) by striking "$15,000" and inserting "$150,000".

(b) ANNUAL REGISTRATION STATEMENT AND NOTIFICATION OF CHANGES. — Subsection (d) of section 6652 of the Internal Revenue Code of 1986 is amended —

(1) by striking "$1" both places it appears in paragraphs (1) and (2) and inserting "$10";

(2) by striking "$5,000" in paragraph (1) and inserting "$50,000"; and

(3) by striking "$1,000" in paragraph (2) and inserting "$10,000".

(1) by striking "$10" and inserting "$100"; and

(2) by striking "$5,000" and inserting "$50,000".

(d) EFFECTIVE DATE. — The amendments made by this section shall apply to returns, statements, and notifications required to be filed, and notices required to be provided, after December 31, 2019.

SEC. 404. INCREASE INFORMATION SHARING TO ADMINISTER EXCISE TAXES.

(a) IN GENERAL. — Section 6103(o) of the Internal Revenue Code of 1986 is amended by adding at the end the following new para-graph:

"(3) TAXES IMPOSED BY SECTION 4481. — Returns and return information with respect to taxes imposed by section 4481 shall be open to inspection by or disclosure to officers and employees of United States Customs and Border Protection of the Department of Homeland Security whose official duties require such inspection or disclosure for purposes of administering such section.".

(b) CONFORMING AMENDMENTS. — Paragraph (4) of section 6103(p) of the Internal Revenue Code of 1986 is amended by striking "or (o)(1)(A)" each place it appears and inserting ", (o)(1)(A), or (o)(3)".

TITLE V — TAX RELIEF FOR CERTAIN CHILDREN

SEC. 501. MODIFICATION OF RULES RELATING TO THE TAXATION OF UNEARNED INCOME OF CERTAIN CHILDREN.

(a) IN GENERAL. — Section 1(j) of the Internal Revenue Code of 1986 is amended by striking paragraph (4).

(b) COORDINATION WITH ALTERNATIVE MINIMUM TAX. — Section 55(d)(4)(A) of the Internal Revenue Code of 1986 is amended by striking "and" at the end of clause (i)(II), by striking the period at the end of clause (ii)(III) and inserting ", and", and by adding at the end the following new clause:

"(iii) subsection (j) of section 59 shall not apply.".

(1) IN GENERAL. — Except as otherwise provided in this subsection, the amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2019.

(2) COORDINATION WITH ALTERNATIVE MINIMUM TAX. — The amendment made by subsection (b) shall apply to taxable years beginning after December 31, 2017.

(3) ELECTIVE RETROACTIVE APPLICATION. — A taxpayer may elect (at such time and in such manner as the Secretary of the Treasury (or the Secretary's designee) may provide) for the amendment made by subsection (a) to also apply to taxable years of the taxpayer which begin in 2018, 2019, or both (as specified by the taxpayer in such election).

TITLE VI — ADMINISTRATIVE PROVISIONS

SEC. 601. PROVISIONS RELATING TO PLAN AMENDMENTS.

(a) IN GENERAL. — If this section applies to any retirement plan or contract amendment —

(1) such retirement plan or contract shall be treated as being operated in accordance with the terms of the plan during the period described in subsection (b)(2)(A); and

(2) except as provided by the Secretary of the Treasury (or the Secretary's delegate), such retirement plan shall not fail to meet the requirements of section 411(d)(6) of the Internal Revenue Code of 1986 and section 204(g) of the Employee Retirement Income Security Act of 1974 by reason of such amendment.

(b) AMENDMENTS TO WHICH SECTION APPLIES. —

(1) IN GENERAL. — This section shall apply to any amend-ment to any retirement plan or annuity contract which is made —

(A) pursuant to any amendment made by this Act or pursuant to any regulation issued by the Secretary of the Treasury or the Secretary of Labor (or a delegate of either such Secretary) under this Act; and

(B) on or before the last day of the first plan year beginning on or after January 1, 2022, or such later date as the Secretary of the Treasury may prescribe.

In the case of a governmental plan (as defined in section 414(d) of the Internal Revenue Code of 1986), or an applicable collectively bargained plan in the case of section 401 (and the amendments made thereby), this paragraph shall be applied by substituting "2024" for "2022". For purposes of the preceding sentence, the term "applicable collectively bargained plan" means a plan maintained pursuant to 1 or more collective bargaining agreements between employee representatives and 1 or more employers ratified before the date of enactment of this Act.

(2) CONDITIONS. — This section shall not apply to any amendment unless —

(A) during the period —

(i) beginning on the date the legislative or regulatory amendment described in paragraph (1)(A) takes effect (or in the case of a plan or contract amendment not required by such legislative or regulatory amendment, the effective date specified by the plan); and

(ii) ending on the date described in paragraph (1)(B) (as modified by the second sentence of paragraph (1)) (or, if earlier, the date the plan or contract amendment is adopted),

the plan or contract is operated as if such plan or contract amendment were in effect; and

(B) such plan or contract amendment applies retro-actively for such period.

* * *

DIVISION Q — REVENUE PROVISIONS

SECTION 1. SHORT TITLE; ETC.

(a) SHORT TITLE. — This division may be cited as the "Taxpayer Certainty and Disaster Tax Relief Act of 2019".

(b) TABLE OF CONTENTS. — The table of contents for this division is as follows:

Sec. 1. Short title; etc.

TITLE I — EXTENSION OF CERTAIN EXPIRING PROVISIONS

Subtitle A — Tax Relief and Support for Families and Individuals

Sec. 101. Exclusion from gross income of discharge of qualified principal residence indebtedness.

Sec. 102. Treatment of mortgage insurance premiums as qualified residence inter-est.

Sec. 103. Reduction in medical expense deduction floor.

Sec. 104. Deduction of qualified tuition and related expenses.

Sec. 105. Black lung disability trust fund excise tax.

Subtitle B — Incentives for Employment, Economic Growth, and Community Development

Sec. 111. Indian employment credit.

Sec. 112. Railroad track maintenance credit.

Sec. 113. Mine rescue team training credit.

Sec. 114. Classification of certain race horses as 3-year property.

Sec. 115. 7-year recovery period for motorsports entertainment complexes.

Sec. 116. Accelerated depreciation for business property on Indian reservations.

Sec. 117. Expensing rules for certain productions.

Sec. 118. Empowerment zone tax incentives.

Sec. 119. American Samoa economic development credit.

Subtitle C — Incentives for Energy Production, Efficiency, and Green Economy Jobs

Sec. 121. Biodiesel and renewable diesel.

Sec. 122. Second generation biofuel producer credit.

Sec. 123. Nonbusiness energy property.

Sec. 124. Qualified fuel cell motor vehicles.

Sec. 125. Alternative fuel refueling property credit.

Sec. 126. 2-wheeled plug-in electric vehicle credit.

Sec. 127. Credit for electricity produced from certain renewable resources.

Sec. 128. Production credit for Indian coal facilities.

Sec. 129. Energy efficient homes credit.

Sec. 130. Special allowance for second generation biofuel plant property.

Sec. 131. Energy efficient commercial buildings deduction.

Sec. 132. Special rule for sales or dispositions to implement FERC or State electric restructuring policy for qualified electric utilities.

Sec. 133. Extension and clarification of excise tax credits relating to alternative fuels.

Sec. 134. Oil spill liability trust fund rate.

Subtitle D — Certain Provisions Expiring at the End of 2019

Sec. 141. New markets tax credit.

Sec. 142. Employer credit for paid family and medical leave.

Sec. 143. Work opportunity credit.

Sec. 144. Certain provisions related to beer, wine, and distilled spirits.

Sec. 145. Look-thru rule for related controlled foreign corporations.

Sec. 146. Credit for health insurance costs of eligible individuals.

TITLE II — DISASTER TAX RELIEF

Sec. 201. Definitions.

Sec. 202. Special disaster-related rules for use of retirement funds.

Sec. 203. Employee retention credit for employers affected by qualified disasters.

Sec. 204. Other disaster-related tax relief provisions.

Sec. 205. Automatic extension of filing deadlines in case of certain taxpayers af-fected by Federally declared disasters.

Sec. 206. Modification of the tax rate for the excise tax on investment income of private foundations.

Sec. 207. Additional low-income housing credit allocations for qualified 2017 and 2018 California disaster areas.

Sec. 208. Treatment of certain possessions.

TITLE III — OTHER PROVISIONS

Sec. 301. Modification of income for purposes of determining tax-exempt status of certain mutual or cooperative telephone or electric companies.

Sec. 302. Repeal of increase in unrelated business taxable income for certain fringe benefit expenses.

(c) AMENDMENT OF 1986 CODE. — Except as otherwise expressly provided, whenever in this division 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.

TITLE I — EXTENSION OF CERTAIN EXPIRING PROVISIONS

Subtitle A — Tax Relief and Support for Families and Individuals

SEC. 101. EXCLUSION FROM GROSS INCOME OF DISCHARGE OF QUALIFIED PRINCIPAL RESIDENCE INDEBTEDNESS.

(a) IN GENERAL. — Section 108(a)(1)(E) is amended by striking "January 1, 2018" each place it appears and inserting "January 1, 2021".

(b) CONFORMING AMENDMENT. — Section 108(h)(2) is amended by inserting "and determined without regard to the substitution described in section 163(h)(3)(F)(i)(II)" after "clause (ii) thereof".

(c) EFFECTIVE DATE. — The amendments made by this section shall apply to discharges of indebtedness after December 31, 2017.

SEC. 102. TREATMENT OF MORTGAGE INSURANCE PREMIUMS AS QUALIFIED RESIDENCE INTEREST.

(a) IN GENERAL. — Section 163(h)(3)(E)(iv)(I) is amended by striking "December 31, 2017" and inserting "December 31, 2020".

(b) EFFECTIVE DATE. — The amendment made by this section shall apply to amounts paid or accrued after December 31, 2017.

SEC. 103. REDUCTION IN MEDICAL EXPENSE DEDUCTION FLOOR.

(a) IN GENERAL. — Section 213(f) is amended to read as follows:

"(f) TEMPORARY SPECIAL RULE. — In the case of taxable years beginning before January 1, 2021, subsection (a) shall be applied with respect to a taxpayer by substituting '7.5 percent' for '10 percent'.".

(b) ALTERNATIVE MINIMUM TAX. — Section 56(b)(1) is amended by striking subparagraph (B) and by redesignating subparagraphs (C), (D), (E), and (F), as subparagraphs (B), (C), (D), and (E), respectively.

SEC.104. DEDUCTION OF QUALIFIED TUITION AND RELATED EXPENSES.

(a) IN GENERAL. — Section 222(e) is amended by striking "December 31, 2017" and inserting "December 31, 2020".

(b) EFFECTIVE DATE. — The amendment made by this section shall apply to taxable years beginning after December 31, 2017.

SEC. 105. BLACK LUNG DISABILITY TRUST FUND EXCISE TAX.

(a) IN GENERAL. — Section 4121(e)(2)(A) is amended by striking "December 31, 2018" and inserting "December 31, 2020".

(b) EFFECTIVE DATE. — The amendment made by this section shall apply on and after the first day of the first calendar month beginning after the date of the enactment of this Act.

Subtitle B — Incentives for Employment, Economic Growth, and Community Development

SEC. 111. INDIAN EMPLOYMENT CREDIT.

(a) IN GENERAL. — Section 45A(f) is amended by striking "December 31, 2017" and inserting "December 31, 2020".

(b) EFFECTIVE DATE. — The amendment made by this section shall apply to taxable years beginning after December 31, 2017.

SEC. 112. RAILROAD TRACK MAINTENANCE CREDIT.

(a) IN GENERAL. — Section 45G(f) is amended by striking "January 1, 2018" and inserting "January 1, 2023".

(b) SAFE HARBOR ASSIGNMENTS. — Any assignment, including related expenditures paid or incurred, under section 45G(b)(2) of the Internal Revenue Code of 1986 for a taxable year beginning on or after January 1, 2018, and ending before January 1, 2020, shall be treated as effective as of the close of such taxable year if made pursuant to a written agreement entered into no later than 90 days following the date of the enactment of this Act.

(c) EFFECTIVE DATE. — The amendment made by this section shall apply to expenditures paid or incurred during taxable years beginning after December 31, 2017.

SEC. 113. MINE RESCUE TEAM TRAINING CREDIT.

(a) IN GENERAL. — Section 45N(e) is amended by striking "December 31, 2017" and inserting "December 31, 2020".

(b) EFFECTIVE DATE. — The amendment made by this section shall apply to taxable years beginning after December 31, 2017.

SEC. 114. CLASSIFICATION OF CERTAIN RACE HORSES AS 3-YEAR PROPERTY.

(a) IN GENERAL. — Section 168(e)(3)(A)(i) is amended —

(1) by striking "January 1, 2018" in subclause (I) and inserting "January 1, 2021", and

(2) by striking "December 31, 2017" in subclause (II) and inserting "December 31, 2020".

(b) EFFECTIVE DATE. — The amendments made by this section shall apply to property placed in service after December 31, 2017.

SEC. 115. 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS ENTERTAINMENT COMPLEXES.

(a) IN GENERAL. — Section 168(i)(15)(D) is amended by striking "December 31, 2017" and inserting "December 31, 2020".

(b) EFFECTIVE DATE. — The amendment made by this section shall apply to property placed in service after December 31, 2017.

SEC. 116. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY ON INDIAN RESERVATIONS.

(a) IN GENERAL. — Section 168(j)(9) is amended by striking "December 31, 2017" and inserting "December 31, 2020".

(b) EFFECTIVE DATE. — The amendment made by this section shall apply to property placed in service after December 31, 2017.

SEC. 117. EXPENSING RULES FOR CERTAIN PRODUCTIONS.

(a) IN GENERAL. — Section 181(g) is amended by striking "December 31, 2017" and inserting "December 31, 2020".

(b) EFFECTIVE DATE. — The amendment made by this section shall apply to productions commencing after December 31, 2017.

SEC. 118. EMPOWERMENT ZONE TAX INCENTIVES.

(a) IN GENERAL. — Section 1391(d)(1)(A)(i) is amended by striking "December 31, 2017" and inserting "December 31, 2020".

(b) TREATMENT OF CERTAIN TERMINATION DATES SPECIFIED IN NOMINATIONS. — In the case of a designation of an empowerment zone the nomination for which included a termination date which is contemporaneous with the date specified in subparagraph (A)(i) of section 1391(d)(1) of the Internal Revenue Code of 1986 (as in effect before the enactment of this Act), subparagraph (B) of such section shall not apply with respect to such designation if, after the date of the enactment of this section, the entity which made such nomination amends the nomination to provide for a new termination date in such manner as the Secretary of the Treasury (or the Secretary's designee) may provide.

(c) EFFECTIVE DATE. — The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2017.

SEC. 119. AMERICAN SAMOA ECONOMIC DEVELOPMENT CREDIT.

(a) IN GENERAL. — Section 119(d) of division A of the Tax Relief and Health Care Act of 2006 is amended —

(1) by striking "January 1, 2018" each place it appears and inserting "January 1, 2021",

(2) by striking "first 12 taxable years" in paragraph (1) and inserting "first 15 taxable years",

(3) by striking "first 6 taxable years" in paragraph (2) and inserting "first 9 taxable years", and

(4) by adding at the end the following flush sentence: "In the case of a corporation described in subsection (a)(2), the Internal Revenue Code of 1986 shall be applied and administered without regard to the amendments made by section 401(d)(1) of the Tax Technical Corrections Act of 2018.".

(b) CONFORMING AMENDMENT. — Section 119(e) of division A of the Tax Relief and Health Care Act of 2006 is amended by inserting "(as in effect before its repeal)" after "section 199 of the Internal Revenue Code of 1986".

(c) EFFECTIVE DATE. — The amendments made by this section shall apply to taxable years beginning after December 31, 2017.

Subtitle C — Incentives for Energy Production, Efficiency, and Green Economy Jobs

SEC. 121. BIODIESEL AND RENEWABLE DIESEL.

(a) INCOME TAX CREDIT. —

(1) IN GENERAL. — Section 40A(g) is amended by striking "December 31, 2017" and inserting "December 31, 2022".

(2) EFFECTIVE DATE. — The amendment made by this subsection shall apply to fuel sold or used after December 31, 2017.

(b) EXCISE TAX INCENTIVES. —

(1) TERMINATION. —

(A) IN GENERAL. — Section 6426(c)(6) is amended by striking "December 31, 2017" and inserting "December 31, 2022".

(B) PAYMENTS. — Section 6427(e)(6)(B) is amended by striking "December 31, 2017" and inserting "December 31, 2022".

(2) EFFECTIVE DATE. — The amendments made by this subsection shall apply to fuel sold or used after December 31, 2017.

(3) SPECIAL RULE. — Notwithstanding any other provision of law, in the case of any biodiesel mixture credit properly determined under section 6426(c) of the Internal Revenue Code of 1986 for the period beginning on January 1, 2018, and ending with the close of the last calendar quarter beginning before the date of the enactment of this Act, such credit shall be allowed, and any refund or payment attributable to such credit (including any payment under section 6427(e) of such Code) shall be made, only in such manner as the Secretary of the Treasury (or the Secretary's delegate) shall provide. Such Secretary shall issue guidance within 30 days after the date of the enactment of this Act providing for a one-time submission of claims covering periods described in the preceding sentence. Such guidance shall provide for a 180-day period for the submission of such claims (in such manner as prescribed by such Secretary) to begin not later than 30 days after such guidance is issued. Such claims shall be paid by such Secretary not later than 60 days after receipt. If such Secretary has not paid pursuant to a claim filed under this subsection within 60 days after the date of the filing of such claim, the claim shall be paid with interest from such date determined by using the overpayment rate and method under section 6621 of such Code.

SEC. 122. SECOND GENERATION BIOFUEL PRODUCER CREDIT.

(a) IN GENERAL. — Section 40(b)(6)(J)(i) is amended by striking "January 1, 2018" and inserting "January 1, 2021".

(b) EFFECTIVE DATE. — The amendment made by this section shall apply to qualified second generation biofuel production after December 31, 2017.

SEC. 123. NONBUSINESS ENERGY PROPERTY.

(a) IN GENERAL. — Section 25C(g)(2) is amended by striking "December 31, 2017" and inserting "December 31, 2020".

(b) TECHNICAL AMENDMENT. — Section 25C(d)(3) is amended —

(1) by striking "an energy factor of at least 2.0" in subparagraph (A) and inserting "a Uniform Energy Factor of at least 2.2", and

(2) by striking "an energy factor" in subparagraph (D) and inserting "a Uniform Energy Factor".

(c) EFFECTIVE DATE. — The amendments made by this section shall apply to property placed in service after December 31, 2017.

SEC. 124. QUALIFIED FUEL CELL MOTOR VEHICLES.

(a) IN GENERAL. — Section 30B(k)(1) is amended by striking "December 31, 2017" and inserting "December 31, 2020".

(b) EFFECTIVE DATE. — The amendment made by this section shall apply to property purchased after December 31, 2017.

SEC. 125. ALTERNATIVE FUEL REFUELING PROPERTY CREDIT.

(a) IN GENERAL. — Section 30C(g) is amended by striking "December 31, 2017" and inserting "December 31, 2020".

(b) EFFECTIVE DATE. — The amendment made by this section shall apply to property placed in service after December 31, 2017.

SEC. 126. 2-WHEELED PLUG-IN ELECTRIC VEHICLE CREDIT.

(a) IN GENERAL. — Section 30D(g)(3)(E)(ii) is amended by striking "January 1, 2018" and inserting "January 1, 2021".

(b) EFFECTIVE DATE. — The amendment made by this section shall apply to vehicles acquired after December 31, 2017.

SEC. 127. CREDIT FOR ELECTRICITY PRODUCED FROM CERTAIN RENEWABLE RESOURCES.

(a) IN GENERAL. — The following provisions of section 45(d) are each amended by striking "January 1, 2018" each place it appears and inserting "January 1, 2021":

(1) Paragraph (2)(A).

(2) Paragraph (3)(A).

(3) Paragraph (4)(B).

(4) Paragraph (6).

(5) Paragraph (7).

(6) Paragraph (9).

(7) Paragraph (11)(B).

(b) EXTENSION OF ELECTION TO TREAT QUALIFIED FACILITIES AS ENERGY PROPERTY. — Section 48(a)(5)(C)(ii) is amended by striking "January 1, 2018 (January 1, 2020, in the case of any facility which is described in paragraph (1) of section 45(d))" and inserting "January 1, 2021".

(1) IN GENERAL. — Section 45(d)(1) is amended by striking "January 1, 2020" and inserting "January 1, 2021".

(2) APPLICATION OF PHASEOUT PERCENTAGE. —

(A) IN GENERAL. — Section 45(b)(5) 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) in the case of any facility the construction of which begins after December 31, 2019, and before January 1, 2021, 40 percent.".

(B) TREATMENT AS ENERGY PROPERTY. — Section 48(a)(5)(E) is amended by striking "and" at the end of clause (ii), by striking the period at the end of clause (iii) and inserting ", and", and by adding at the end the following new clause:

"(iv) in the case of any facility the construction of which begins after December 31, 2019, and before January 1, 2021, 40 percent.".

(d) EFFECTIVE DATE. — The amendments made by this section shall take effect on January 1, 2018.

SEC. 128. PRODUCTION CREDIT FOR INDIAN COAL FACILITIES.

(a) IN GENERAL. — Section 45(e)(10)(A) is amended by striking "12-year period" each place it appears and inserting "15-year period".

(b) EFFECTIVE DATE. — The amendment made by this section shall apply to coal produced after December 31, 2017.

SEC. 129. ENERGY EFFICIENT HOMES CREDIT.

(a) IN GENERAL. — Section 45L(g) is amended by striking "December 31, 2017" and inserting "December 31, 2020".

(b) EFFECTIVE DATE. — The amendment made by this section shall apply to homes acquired after December 31, 2017.

SEC. 130. SPECIAL ALLOWANCE FOR SECOND GENERATION BIOFUEL PLANT PROPERTY.

(a) IN GENERAL. — Section 168(l)(2)(D) is amended by striking "January 1, 2018" and inserting "January 1, 2021".

(b) EFFECTIVE DATE. — The amendment made by this section shall apply to property placed in service after December 31, 2017.

SEC. 131. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.

(a) IN GENERAL. — Section 179D(h) is amended by striking "December 31, 2017" and inserting "December 31, 2020".

(b) EFFECTIVE DATES. — The amendment made by subsection (a) shall apply to property placed in service after December 31, 2017.

SEC. 132. SPECIAL RULE FOR SALES OR DISPOSITIONS TO IMPLEMENT FERC OR STATE ELECTRIC RESTRUCTURING POLICY FOR QUALIFIED ELECTRIC UTILITIES.

(a) IN GENERAL. — Section 451(k)(3) is amended by striking "January 1, 2018" and inserting "January 1, 2021".

(b) EFFECTIVE DATE. — The amendment made by this section shall apply to dispositions after December 31, 2017.

SEC. 133. EXTENSION AND CLARIFICATION OF EXCISE TAX CREDITS RELATING TO ALTERNATIVE FUELS.

(a) EXTENSION. —

(1) IN GENERAL. — Sections 6426(d)(5) and 6426(e)(3) are each amended by striking "December 31, 2017" and inserting "December 31, 2020".

(2) OUTLAY PAYMENTS FOR ALTERNATIVE FUELS. — Section 6427(e)(6)(C) is amended by striking "December 31, 2017" and inserting "December 31, 2020".

(3) SPECIAL RULE. — Notwithstanding any other provision of law, in the case of any alternative fuel credit properly determined under section 6426(d) of the Internal Revenue Code of 1986 for the period beginning on January 1, 2018, and ending with the close of the last calendar quarter beginning before the date of the enactment of this Act, such credit shall be allowed, and any refund or payment attributable to such credit (including any payment under section 6427(e) of such Code) shall be made, only in such manner as the Secretary of the Treasury (or the Secretary's delegate) shall provide. Such Secretary shall issue guidance within 30 days after the date of the enactment of this Act providing for a one-time submission of claims covering periods described in the preceding sentence. Such guidance shall provide for a 180-day period for the submission of such claims (in such manner as prescribed by such Secretary) to begin not later than 30 days after such guidance is issued. Such claims shall be paid by such Secretary not later than 60 days after receipt. If such Secretary has not paid pursuant to a claim filed under this subsection within 60 days after the date of the filing of such claim, the claim shall be paid with interest from such date determined by using the overpayment rate and method under section 6621 of such Code.

(4) EFFECTIVE DATE. — The amendments made by this subsection shall apply to fuel sold or used after December 31, 2017.

(b) CLARIFICATION OF RULES REGARDING ALTERNATIVE FUEL MIXTURE CREDIT. —

(1) IN GENERAL. — Paragraph (2) of section 6426(e) is amended by striking "mixture of alternative fuel" and inserting "mixture of alternative fuel (other than a fuel described in subparagraph (A), (C), or (F) of subsection (d)(2))".

(2) EFFECTIVE DATE. — The amendment made by this subsection shall apply to —

(A) fuel sold or used on or after the date of the enact-ment of this Act, and

(B) fuel sold or used before such date of enactment, but only to the extent that claims for the credit under section 6426(e) of the Internal Revenue Code of 1986 with respect to such sale or use —

(i) have not been paid or allowed as of such date, and

(ii) were made on or after January 8, 2018.

(3) NO INFERENCE. — Nothing contained in this subsection or the amendments made by this subsection shall be construed to create any inference as to a change in law or guidance in effect prior to enactment of this subsection.

SEC. 134. OIL SPILL LIABILITY TRUST FUND RATE.

(a) IN GENERAL. — Section 4611(f)(2) is amended by striking "December 31, 2018" and inserting "December 31, 2020".

(b) EFFECTIVE DATE. — The amendment made by this section shall apply on and after the first day of the first calendar month beginning after the date of the enactment of this Act.

Subtitle D — Certain Provisions Expiring at the End of 2019

SEC. 141. NEW MARKETS TAX CREDIT.

(a) IN GENERAL. — Section 45D(f)(1) is amended by striking "and" at the end of subparagraph (F), by striking the period at the end of subparagraph (G) and inserting ", and", and by adding at the end the following new subparagraph:

"(H) $5,000,000,000 for 2020.".

(b) CARRYOVER OF UNUSED LIMITATION. — Section 45D(f)(3) is amended by striking "2024" and inserting "2025".

(c) EFFECTIVE DATE. — The amendments made by this section shall apply to calendar years beginning after December 31, 2019.

SEC. 142. EMPLOYER CREDIT FOR PAID FAMILY AND MEDICAL LEAVE.

(a) IN GENERAL. — Section 45S(i) is amended by striking "December 31, 2019" and inserting "December 31, 2020".

(b) EFFECTIVE DATE. — The amendment made by this section shall apply to wages paid in taxable years beginning after December 31, 2019.

SEC. 143. WORK OPPORTUNITY CREDIT.

(a) IN GENERAL. — Section 51(c)(4) is amended by striking "December 31, 2019" and inserting "December 31, 2020".

(b) EFFECTIVE DATE. — The amendment made by this section shall apply to individuals who begin work for the employer after December 31, 2019.

SEC. 144. CERTAIN PROVISIONS RELATED TO BEER, WINE, AND DIS-TILLED SPIRITS.

(a) EXEMPTION FOR AGING PROCESS OF BEER, WINE, AND DISTILLED SPIRITS. —

(1) IN GENERAL. — Section 263A(f)(4)(B) is amended by striking "December 31, 2019" and inserting "December 31, 2020".

(2) EFFECTIVE DATE. — The amendment made by this subsection shall apply to interest costs paid or accrued after December 31, 2019.

(b) REDUCED RATE OF EXCISE TAX ON BEER. —

(1) IN GENERAL. — Paragraphs (1)(C) and (2)(A) of section 5051(a) are each amended by striking "January 1, 2020" and inserting "January 1, 2021".

(2) EFFECTIVE DATE. — The amendments made by this subsection shall apply to beer removed after December 31, 2019.

(1) IN GENERAL. — Section 5414(b)(3) is amended by striking "December 31, 2019" and inserting "December 31, 2020".

(2) EFFECTIVE DATE. — The amendment made by this subsection shall apply to calendar quarters beginning after December 31, 2019.

(d) REDUCED RATE OF EXCISE TAX ON CERTAIN WINE. —

(1) IN GENERAL. — Section 5041(c)(8)(A) is amended by striking "January 1, 2020" and inserting "January 1, 2021".

(2) CONFORMING AMENDMENT. — The heading of section 5041(c)(8) is amended by striking "SPECIAL RULE FOR 2018 AND 2019" and inserting "TEMPORARY SPECIAL RULE".

(3) EFFECTIVE DATE. — The amendments made by this subsection shall apply to wine removed after December 31, 2019.

(e) ADJUSTMENT OF ALCOHOL CONTENT LEVEL FOR APPLICATION OF EXCISE TAXES. —

(1) IN GENERAL. — Paragraphs (1) and (2) of section 5041(b) are each amended by striking "January 1, 2020" and inserting "January 1, 2021".

(2) EFFECTIVE DATE. — The amendments made by this subsection shall apply to wine removed after December 31, 2019.

(f) DEFINITION OF MEAD AND LOW ALCOHOL BY VOLUME WINE. —

(1) IN GENERAL. — Section 5041(h)(3) is amended by striking "December 31, 2019" and inserting "December 31, 2020".

(2) EFFECTIVE DATE. — The amendment made by this subsection shall apply to wine removed after December 31, 2019.

(g) REDUCED RATE OF EXCISE TAX ON CERTAIN DISTILLED SPIRITS. —

(1) IN GENERAL. — Section 5001(c)(4) is amended by striking "December 31, 2019" and inserting "December 31, 2020".

(2) CONFORMING AMENDMENT. — The heading of section 5001(c) is amended by striking "REDUCED RATE FOR 2018 AND 2019" and inserting "TEMPORARY REDUCED RATE".

(3) EFFECTIVE DATE. — The amendments made by this subsection shall apply to distilled spirits removed after December 31, 2019.

(h) BULK DISTILLED SPIRITS. —

(1) IN GENERAL. — Section 5212 is amended by striking "January 1, 2020" and inserting "January 1, 2021".

(2) EFFECTIVE DATE. — The amendment made by this subsection shall apply to distilled spirits transferred in bond after December 31, 2019.

(i) SIMPLIFICATION OF RULES REGARDING RECORDS, STATE-

(1) IN GENERAL. — Section 5555(a) is amended by striking "January 1, 2020" and inserting "January 1, 2021".

(2) EFFECTIVE DATE. — The amendment made by this subsection shall apply to calendar quarters beginning after December 31, 2019.

(j) TECHNICAL CORRECTION. —

(1) IN GENERAL. — Section 5041(c)(8) is amended by adding at the end the following new subparagraph:

"(C) APPLICATION OF CERTAIN RULES. — Paragraphs (3) and (6) shall be applied by substituting 'paragraph (1) or (8)' for 'paragraph (1)' each place it appears therein.".

(2) EFFECTIVE DATE. — The amendment made by this subsection shall take effect as if included in section 13804 of Public Law 115-97.

SEC. 145. LOOK-THRU RULE FOR RELATED CONTROLLED FOREIGN CORPORATIONS.

(a) IN GENERAL. — Section 954(c)(6)(C) is amended by striking "January 1, 2020" and inserting "January 1, 2021".

(b) EFFECTIVE DATE. — The amendment made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2019, and to taxable years of United States shareholders with or within which such taxable years of foreign corporations end.

SEC. 146. CREDIT FOR HEALTH INSURANCE COSTS OF ELIGIBLE INDIVIDUALS.

(a) IN GENERAL. — Section 35(b)(1)(B) is amended by striking "January 1, 2020" and inserting "January 1, 2021".

(b) EFFECTIVE DATE. — The amendment made by this section shall apply to months beginning after December 31, 2019.

TITLE II — DISASTER TAX RELIEF

SEC. 201. DEFINITIONS.

For purposes of this title —

(1) QUALIFIED DISASTER AREA. —

(A) IN GENERAL. — The term "qualified disaster area" means any area with respect to which a major disaster was declared, during the period beginning on January 1, 2018, and ending on the date which is 60 days after the date of the enactment of this Act, by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act if the incident period of the disaster with respect to which such declaration is made begins on or before the date of the enactment of this Act.

(B) DENIAL OF DOUBLE BENEFIT. — Such term shall not include the California wildfire disaster area (as defined in section 20101 of subdivision 2 of division B of the Bipartisan Budget Act of 2018).

(2) QUALIFIED DISASTER ZONE. — The term "qualified disaster zone" means that portion of any qualified disaster area which was determined by the President, during the period beginning on January 1, 2018, and ending on the date which is 60 days after the date of the enactment of this Act, to warrant individual or individual and public assistance from the Federal Government under the Robert T. Stafford Disaster Relief and Emergency Assistance Act by reason of the qualified disaster with respect to such disaster area.

(3) QUALIFIED DISASTER. — The term "qualified disaster" means, with respect to any qualified disaster area, the disaster by reason of which a major disaster was declared with respect to such area.

(4) INCIDENT PERIOD. — The term "incident period" means, with respect to any qualified disaster, the period specified by the Federal Emergency Management Agency as the period during which such disaster occurred (except that for purposes of this title such period shall not be treated as beginning before January 1, 2018, or ending after the date which is 30 days after the date of the enactment of this Act).

SEC. 202. SPECIAL DISASTER-RELATED RULES FOR USE OF RETIREMENT FUNDS.

(a) TAX-FAVORED WITHDRAWALS FROM RETIREMENT PLANS. —

(1) IN GENERAL. — Section 72(t) of the Internal Revenue Code of 1986 shall not apply to any qualified disaster distribution.

(2) AGGREGATE DOLLAR LIMITATION. —

(A) IN GENERAL. — For purposes of this subsection, the aggregate amount of distributions received by an individual which may be treated as qualified disaster distributions for any taxable year shall not exceed the excess (if any) of —

(i) $100,000, over

(ii) the aggregate amounts treated as qualified disaster distributions received by such individual for all prior taxable years.

(B) TREATMENT OF PLAN DISTRIBUTIONS. — If a distribution to an individual would (without regard to subparagraph (A)) be a qualified disaster distribution, a plan shall not be treated as violating any requirement of the Internal Revenue Code of 1986 merely because the plan treats such distribution as a qualified disaster distribution, unless the aggregate amount of such distributions from all plans maintained by the employer (and any member of any controlled group which includes the employer) to such individual exceeds $100,000.

(C) CONTROLLED GROUP. — For purposes of subparagraph (B), the term "controlled group" means any group treated as a single employer under subsection (b), (c), (m), or (o) of section 414 of the Internal Revenue Code of 1986.

(D) SPECIAL RULE FOR INDIVIDUALS AFFECTED BY MORE THAN ONE DISASTER. — The limitation of subparagraph (A) shall be applied separately with respect to distributions made with respect to each qualified disaster.

(3) AMOUNT DISTRIBUTED MAY BE REPAID. —

(A) IN GENERAL. — Any individual who receives a qualified disaster distribution may, at any time during the 3-year period beginning on the day after the date on which such distribution was received, make 1 or more contributions in an aggregate amount not to exceed the amount of such distribution to an eligible retirement plan of which such individual is a beneficiary and to which a rollover contribution of such distribution could be made under section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16), of the Internal Revenue Code of 1986, as the case may be.

(B) TREATMENT OF REPAYMENTS OF DISTRIBUTIONS FROM ELIGIBLE RETIREMENT PLANS OTHER THAN IRAS. — For purposes of the Internal Revenue Code of 1986, if a contribution is made pursuant to subparagraph (A) with respect to a qualified disaster distribution from an eligible retirement plan other than an individual retirement plan, then the taxpayer shall, to the extent of the amount of the contribution, be treated as having received the qualified disaster distribution in an eligible rollover distribution (as defined in section 402(c)(4) of such Code) and as having transferred the amount to the eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.

(C) TREATMENT OF REPAYMENTS OF DISTRIBUTIONS FROM IRAS. — For purposes of the Internal Revenue Code of 1986, if a contribution is made pursuant to subparagraph (A) with respect to a qualified disaster distribution from an individual retirement plan (as defined by section 7701(a)(37) of such Code), then, to the extent of the amount of the contribution, the qualified disaster distribution shall be treated as a distribution described in section 408(d)(3) of such Code and as having been transferred to the eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.

(4) DEFINITIONS. — For purposes of this subsection —

(A) QUALIFIED DISASTER DISTRIBUTION. — Except as provided in paragraph (2), the term "qualified disaster distribution" means any distribution from an eligible retirement plan made —

(i) on or after the first day of the incident period of a qualified disaster and before the date which is 180 days after the date of the enactment of this Act, and

(ii) to an individual whose principal place of abode at any time during the incident period of such qualified disaster is located in the qualified disaster area with respect to such qualified disaster and who has sustained an economic loss by reason of such qualified disaster.

(B) ELIGIBLE RETIREMENT PLAN. — The term "eligible retirement plan" shall have the meaning given such term by section 402(c)(8)(B) of the Internal Revenue Code of 1986.

(5) INCOME INCLUSION SPREAD OVER 3-YEAR PERIOD. —

(A) IN GENERAL. — In the case of any qualified disaster distribution, unless the taxpayer elects not to have this paragraph apply for any taxable year, any amount required to be included in gross income for such taxable year shall be so included ratably over the 3-taxable-year period beginning with such taxable year.

(B) SPECIAL RULE. — For purposes of subparagraph (A), rules similar to the rules of subparagraph (E) of section 408A(d)(3) of the Internal Revenue Code of 1986 shall apply.

(6) SPECIAL RULES. —

(A) EXEMPTION OF DISTRIBUTIONS FROM TRUSTEE TO TRUSTEE TRANSFER AND WITHHOLDING RULES. — For purposes of sections 401(a)(31), 402(f), and 3405 of the Internal Revenue Code of 1986, qualified disaster distributions shall not be treated as eligible rollover distributions.

(B) QUALIFIED DISASTER DISTRIBUTIONS TREATED AS MEETING PLAN DISTRIBUTION REQUIREMENTS. — For purposes the Internal Revenue Code of 1986, a qualified disaster distribution shall be treated as meeting the requirements of sections 401(k)(2)(B)(i), 403(b)(7)(A)(ii), 403(b)(11), and 457(d)(1)(A) of such Code.

(b) RECONTRIBUTIONS OF WITHDRAWALS FOR HOME PURCHASES. —

(1) RECONTRIBUTIONS. —

(A) IN GENERAL. — Any individual who received a qualified distribution may, during the applicable period, make 1 or more contributions in an aggregate amount not to exceed the amount of such qualified distribution to an eligible retirement plan (as defined in section 402(c)(8)(B) of the Internal Revenue Code of 1986) of which such individual is a beneficiary and to which a rollover contribution of such distribution could be made under section 402(c), 403(a)(4), 403(b)(8), or 408(d)(3), of such Code, as the case may be.

(B) TREATMENT OF REPAYMENTS. — Rules similar to the rules of subparagraphs (B) and (C) of subsection (a)(3) shall apply for purposes of this subsection.

(2) QUALIFIED DISTRIBUTION.—For purposes of this subsection, the term "qualified distribution" means any distribution —

(A) described in section 401(k)(2)(B)(i)(IV), 403(b)(7)(A)(ii) (but only to the extent such distribution relates to financial hardship), 403(b)(11)(B), or 72(t)(2)(F), of the Internal Revenue Code of 1986,

(B) which was to be used to purchase or construct a principal residence in a qualified disaster area, but which was not so used on account of the qualified disaster with respect to such area, and

(C) which was received during the period beginning on the date which is 180 days before the first day of the incident period of such qualified disaster and ending on the date which is 30 days after the last day of such incident period.

(3) APPLICABLE PERIOD. — For purposes of this subsection, the term "applicable period" means, in the case of a principal residence in a qualified disaster area with respect to any qualified disaster, the period beginning on the first day of the incident period of such qualified disaster and ending on the date which is 180 days after the date of the enactment of this Act.

(1) INCREASE IN LIMIT ON LOANS NOT TREATED AS DISTRIBUTIONS. — In the case of any loan from a qualified employer plan (as defined under section 72(p)(4) of the Internal Revenue Code of 1986) to a qualified individual made during the 180-day period beginning on the date of the enactment of this Act —

(A) clause (i) of section 72(p)(2)(A) of such Code shall be applied by substituting "$100,000" for "$50,000", and

(B) clause (ii) of such section shall be applied by substituting "the present value of the nonforfeitable accrued benefit of the employee under the plan" for "one-half of the present value of the nonforfeitable accrued benefit of the employee under the plan".

(2) DELAY OF REPAYMENT. — In the case of a qualified individual (with respect to any qualified disaster) with an out-standing loan (on or after the first day of the incident period of such qualified disaster) from a qualified employer plan (as defined in section 72(p)(4) of the Internal Revenue Code of 1986) —

(A) if the due date pursuant to subparagraph (B) or (C) of section 72(p)(2) of such Code for any repayment with respect to such loan occurs during the period beginning on the first day of the incident period of such qualified disaster and ending on the date which is 180 days after the last day of such incident period, such due date shall be delayed for 1 year (or, if later, until the date which is 180 days after the date of the enactment of this Act),

(B) any subsequent repayments with respect to any such loan shall be appropriately adjusted to reflect the delay in the due date under subparagraph (A) and any interest accruing during such delay, and

(C) in determining the 5-year period and the term of a loan under subparagraph (B) or (C) of section 72(p)(2) of such Code, the period described in subparagraph (A) of this paragraph shall be disregarded.

(3) QUALIFIED INDIVIDUAL. — For purposes of this subsection, the term "qualified individual" means any individual —

(A) whose principal place of abode at any time during the incident period of any qualified disaster is located in the qualified disaster area with respect to such qualified disaster, and

(B) who has sustained an economic loss by reason of such qualified disaster.

(d) PROVISIONS RELATING TO PLAN AMENDMENTS. —

(1) IN GENERAL. — If this subsection applies to any amendment to any plan or annuity contract, such plan or contract shall be treated as being operated in accordance with the terms of the plan during the period described in paragraph (2)(B)(i).

(2) AMENDMENTS TO WHICH SUBSECTION APPLIES. —

(A) IN GENERAL. — This subsection shall apply to any amendment to any plan or annuity contract which is made —

(i) pursuant to any provision of this section, or pursuant to any regulation issued by the Secretary or the Secretary of Labor under any provision of this section, and

(ii) on or before the last day of the first plan year beginning on or after January 1, 2020, or such later date as the Secretary may prescribe.

In the case of a governmental plan (as defined in section 414(d) of the Internal Revenue Code of 1986), clause (ii) shall be applied by substituting the date which is 2 years after the date otherwise applied under clause (ii).

(B) CONDITIONS. — This subsection shall not apply to any amendment unless —

(i) during the period —

(I) beginning on the date that this section or the regulation described in subparagraph (A)(i) takes effect (or in the case of a plan or contract amendment not required by this section or such regulation, the effective date specified by the plan), and

(II) ending on the date described in subparagraph (A)(ii) (or, if earlier, the date the plan or contract amendment is adopted), the plan or contract is operated as if such plan or contract amendment were in effect, and

(ii) such plan or contract amendment applies retroactively for such period.

SEC. 203. EMPLOYEE RETENTION CREDIT FOR EMPLOYERS AFFECTED BY QUALIFIED DISASTERS.

(a) IN GENERAL. — For purposes of section 38 of the Internal Revenue Code of 1986, in the case of an eligible employer, the 2018 through 2019 qualified disaster employee retention credit shall be treated as a credit listed at the end of subsection (b) of such section. For purposes of this subsection, the 2018 through 2019 qualified disaster employee retention credit for any taxable year is an amount equal to 40 percent of the qualified wages with respect to each eligible employee of such employer for such taxable year. The amount of qualified wages with respect to any employee which may be taken into account under this subsection by the employer for any taxable year shall not exceed $6,000 (reduced by the amount of qualified wages with respect to such employee which may be so taken into account for any prior taxable year).

(b) DEFINITIONS. — For purposes of this section —

(1) ELIGIBLE EMPLOYER. — The term "eligible employer" means any employer —

(A) which conducted an active trade or business in a qualified disaster zone at any time during the incident period of the qualified disaster with respect to such qualified disaster zone, and

(B) with respect to whom the trade or business described in subparagraph (A) is inoperable at any time during the period beginning on the first day of the incident period of such qualified disaster and ending on the date of the enactment of this Act, as a result of damage sustained by reason of such qualified disaster.

(2) ELIGIBLE EMPLOYEE. — The term "eligible employee" means with respect to an eligible employer an employee whose principal place of employment with such eligible employer (determined immediately before the qualified disaster referred to in paragraph (1)) was in the qualified disaster zone referred to in such paragraph.

(3) QUALIFIED WAGES. — The term "qualified wages" means wages (as defined in section 51(c)(1) of the Internal Revenue Code of 1986, but without regard to section 3306(b)(2)(B) of such Code) paid or incurred by an eligible employer with respect to an eligible employee at any time on or after the date on which the trade or business described in paragraph (1) first became inoperable at the principal place of employment of the employee (determined immediately before the qualified dis-aster referred to in such paragraph) and before the earlier of —

(A) the date on which such trade or business has resumed significant operations at such principal place of employment, or

(B) the date which 150 days after the last day of the incident period of the qualified disaster referred to in paragraph (1).

Such term shall include wages paid without regard to whether the employee performs no services, performs services at a different place of employment than such principal place of employment, or performs services at such principal place of employment before significant operations have resumed.

(c) CERTAIN RULES TO APPLY. — For purposes of this section, rules similar to the rules of sections 51(i)(1), 52, and 280C(a), of the Internal Revenue Code of 1986, shall apply.

(d) EMPLOYEE NOT TAKEN INTO ACCOUNT MORE THAN ONCE. — An employee shall not be treated as an eligible employee for purposes of this section for any period with respect to any employer if such employer is allowed a credit under section 51 of the Internal Revenue Code of 1986 with respect to such employee for such period.

SEC. 204. OTHER DISASTER-RELATED TAX RELIEF PROVISIONS.

(a) TEMPORARY INCREASE IN LIMITATION ON QUALIFIED CONTRIBUTIONS. —

(1) SUSPENSION OF CURRENT LIMITATION. — Except as otherwise provided in paragraph (2), qualified contributions shall be disregarded in applying subsections (b) and (d) of section 170 of the Internal Revenue Code of 1986.

(2) APPLICATION OF INCREASED LIMITATION. — For purposes of section 170 of the Internal Revenue Code of 1986 —

(A) INDIVIDUALS. — In the case of an individual —

(i) LIMITATION. — Any qualified contribution shall be allowed as a deduction only to the extent that the aggregate of such contributions does not exceed the excess of the taxpayer's contribution base (as defined in subparagraph (H) of section 170(b)(1) of such Code) over the amount of all other charitable contributions allowed under section 170(b)(1) of such Code.

(ii) CARRYOVER. — If the aggregate amount of qualified contributions made in the contribution year (within the meaning of section 170(d)(1) of such Code) exceeds the limitation of clause (i), such excess shall be added to the excess described in section 170(b)(1)(G)(ii).

(B) CORPORATIONS. — In the case of a corporation —

(iii) LIMITATION. — Any qualified contribution shall be allowed as a deduction only to the extent that the aggregate of such contributions does not exceed the excess of the taxpayer's taxable income (as determined under paragraph (2) of section 170(b) of such Code) over the amount of all other charitable contributions allowed under such paragraph.

(iv) CARRYOVER. — If the aggregate amount of qualified contributions made in the contribution year (within the meaning of section 170(d)(2) of such Code) exceeds the limitation of clause (i), such excess shall be appropriately taken into account under section 170(d)(2) subject to the limitations thereof.

(3) QUALIFIED CONTRIBUTIONS. —

(A) IN GENERAL. — For purposes of this subsection, the term "qualified contribution" means any charitable contribution (as defined in section 170(c) of the Internal Revenue Code of 1986) if —

(i) such contribution —

(I) is paid, during the period beginning on January 1, 2018, and ending on the date which is 60 days after the date of the enactment of this Act, in cash to an organization described in section 170(b)(1)(A) of such Code, and

(II) is made for relief efforts in one or more qualified disaster areas,

(ii) the taxpayer obtains from such organization contemporaneous written acknowledgment (within the meaning of section 170(f)(8) of such Code) that such contribution was used (or is to be used) for relief efforts described in clause (i)(II), and

(iii) the taxpayer has elected the application of this subsection with respect to such contribution.

(B) EXCEPTION. — Such term shall not include a contribution by a donor if the contribution is —

(i) to an organization described in section 509(a)(3) of the Internal Revenue Code of 1986, or

(ii) for the establishment of a new, or maintenance of an existing, donor advised fund (as defined in section 4966(d)(2) of such Code).

(C) APPLICATION OF ELECTION TO PARTNERSHIPS AND S CORPORATIONS. — In the case of a partnership or S corporation, the election under subparagraph (A)(iii) shall be made separately by each partner or shareholder.

(b) SPECIAL RULES FOR QUALIFIED DISASTER-RELATED PERSONAL CASUALTY LOSSES. —

(1) IN GENERAL. — If an individual has a net disaster loss for any taxable year —

(A) the amount determined under section 165(h)(2)(A)(ii) of the Internal Revenue Code of 1986 shall be equal to the sum of —

(i) such net disaster loss, and

(ii) so much of the excess referred to in the matter preceding clause (i) of section 165(h)(2)(A) of such Code (reduced by the amount in clause (i) of this subparagraph) as exceeds 10 percent of the adjusted gross income of the individual,

(B) section 165(h)(1) of such Code shall be applied by substituting "$500" for "$500 ($100 for taxable years beginning after December 31, 2009)",

(D) section 56(b)(1)(E) of such Code (section 56(b)(1)(D) of such Code in the case of taxable years ending after December 31, 2018) shall not apply to so much of the standard deduction as is attributable to the increase under subparagraph (C) of this paragraph.

(2) NET DISASTER LOSS. — For purposes of this subsection, the term "net disaster loss" means the excess of qualified dis-aster-related personal casualty losses over personal casualty gains (as defined in section 165(h)(3)(A) of the Internal Revenue Code of 1986).

(3) QUALIFIED DISASTER-RELATED PERSONAL CASUALTY LOSSES. — For purposes of this subsection, the term "qualified disaster-related personal casualty losses" means losses described in section 165(c)(3) of the Internal Revenue Code of 1986 which arise in a qualified disaster area on or after the first day of the incident period of the qualified disaster to which such area relates, and which are attributable to such qualified disaster.

(1) IN GENERAL. — In the case of a qualified individual, if the earned income of the taxpayer for the applicable taxable year is less than the earned income of the taxpayer for the preceding taxable year, the credits allowed under sections 24(d) and 32 of the Internal Revenue Code of 1986 may, at the election of the taxpayer, be determined by substituting —

(A) such earned income for the preceding taxable year, for

(B) such earned income for the applicable taxable year.

(2) QUALIFIED INDIVIDUAL. — For purposes of this subsection, the term "qualified individual" means any individual whose principal place of abode at any time during the incident period of any qualified disaster was located —

(A) in the qualified disaster zone with respect to such qualified disaster, or

(B) in the qualified disaster area with respect to such qualified disaster (but outside the qualified disaster zone with respect to such qualified disaster) and such individual was displaced from such principal place of abode by reason of such qualified disaster.

(3) APPLICABLE TAXABLE YEAR. — For purposes of this subsection, the term "applicable taxable year" means —

(A) in the case of a qualified individual other than an individual described in subparagraph (B), any taxable year which includes any portion of the incident period of the qualified disaster to which the qualified disaster area referred to in paragraph (2)(A) relates, or

(B) in the case of a qualified individual described in subparagraph (B) of paragraph (2), any taxable year which includes any portion of the period described in such subparagraph.

(4) EARNED INCOME. — For purposes of this subsection, the term "earned income" has the meaning given such term under section 32(c) of the Internal Revenue Code of 1986.

(5) SPECIAL RULES. —

(A) APPLICATION TO JOINT RETURNS. — For purposes of paragraph (1), in the case of a joint return for an applicable taxable year —

(i) such paragraph shall apply if either spouse is a qualified individual, and

(ii) the earned income of the taxpayer for the preceding taxable year shall be the sum of the earned income of each spouse for such preceding taxable year.

(B) UNIFORM APPLICATION OF ELECTION. — Any election made under paragraph (1) shall apply with respect to both sections 24(d) and 32 of the Internal Revenue Code of 1986.

(C) ERRORS TREATED AS MATHEMATICAL ERROR. — For purposes of section 6213 of the Internal Revenue Code of 1986, an incorrect use on a return of earned income pursuant to paragraph (1) shall be treated as a mathematical or clerical error.

(D) NO EFFECT ON DETERMINATION OF GROSS INCOME, ETC. — Except as otherwise provided in this subsection, the Internal Revenue Code of 1986 shall be applied without regard to any substitution under paragraph (1).

SEC. 205. AUTOMATIC EXTENSION OF FILING DEADLINES IN CASE OF CERTAIN TAXPAYERS AFFECTED BY FEDERALLY DECLARED DISASTERS.

(a) IN GENERAL. — Section 7508A is amended by adding at the end the following new subsection:

"(d) MANDATORY 60-DAY EXTENSION. —

"(1) IN GENERAL. — In the case of any qualified taxpayer, the period —

"(A) beginning on the earliest incident date specified in the declaration to which the disaster area referred to in paragraph (2) relates, and

"(B) ending on the date which is 60 days after the latest incident date so specified, shall be disregarded in the same manner as a period specified under subsection (a).

"(2) QUALIFIED TAXPAYER. — For purposes of this subsection, the term 'qualified taxpayer' means —

"(A) any individual whose principal residence (for purposes of section 1033(h)(4)) is located in a disaster area,

"(B) any taxpayer if the taxpayer's principal place of business (other than the business of performing services as an employee) is located in a disaster area,

"(C) any individual who is a relief worker affiliated with a recognized government or philanthropic organization and who is assisting in a disaster area,

"(D) any taxpayer whose records necessary to meet a deadline for an act described in section 7508(a)(1) are maintained in a disaster area,

"(E) any individual visiting a disaster area who was killed or injured as a result of the disaster, and

"(F) solely with respect to a joint return, any spouse of an individual described in any preceding subparagraph of this paragraph.

"(3) DISASTER AREA. — For purposes of this subsection, the term 'disaster area' has the meaning given such term under subparagraph (B) of section 165(i)(5) with respect to a Federally declared disaster (as defined in subparagraph (A) of such section).

"(4) APPLICATION TO RULES REGARDING PENSIONS. — In the case of any person described in subsection (b), a rule similar to the rule of paragraph (1) shall apply for purposes of subsection (b) with respect to —

"(A) making contributions to a qualified retirement plan (within the meaning of section 4974(c)) under section 219(f)(3), 404(a)(6), 404(h)(1)(B), or 404(m)(2),

"(B) making distributions under section 408(d)(4),

"(C) recharacterizing contributions under section 408A(d)(6), and

"(D) making a rollover under section 402(c), 403(a)(4), 403(b)(8), or 408(d)(3).

"(5) COORDINATION WITH PERIODS SPECIFIED BY THE SECRETARY. — Any period described in paragraph (1) with respect to any person (including by reason of the application of para-graph (4)) shall be in addition to (or concurrent with, as the case may be) any period specified under subsection (a) or (b) with respect to such person.".

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

SEC. 206. MODIFICATION OF THE TAX RATE FOR THE EXCISE TAX ON INVESTMENT INCOME OF PRIVATE FOUNDATIONS.

(a) IN GENERAL. — Section 4940(a) is amended by striking "2 percent" and inserting "1.39 percent".

(b) ELIMINATION OF REDUCED TAX WHERE FOUNDATION MEETS CERTAIN DISTRIBUTION REQUIREMENTS. — Section 4940 is amended by striking subsection (e).

(c) EFFECTIVE DATE. — The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

SEC. 207. ADDITIONAL LOW-INCOME HOUSING CREDIT ALLOCATIONS FOR QUALIFIED 2017 AND 2018 CALIFORNIA DISASTER AREAS.

(a) IN GENERAL. — For purposes of section 42 of the Internal Revenue Code of 1986, the State housing credit ceiling for California for calendar year 2020 shall be increased by the lesser of —

(1) the aggregate housing credit dollar amount allocated by the State housing credit agencies of California for such calendar year to buildings located in qualified 2017 and 2018 California disaster areas, or

(2) 50 percent of the sum of the State housing credit ceilings for California for calendar years 2017 and 2018.

(b) ALLOCATIONS TREATED AS MADE FIRST FROM ADDITIONAL ALLOCATION FOR PURPOSES OF DETERMINING CARRYOVER. — For purposes of determining the unused State housing credit ceiling for any calendar year under section 42(h)(3)(C) of the Internal Revenue Code of 1986, any increase in the State housing credit ceiling under subsection (a) shall be treated as an amount described in clause (ii) of such section.

(1) QUALIFIED 2017 AND 2018 CALIFORNIA DISASTER AREAS. — The term "qualified 2017 and 2018 California disaster areas" means any area in California which was determined by the President (before January 1, 2019) to warrant individual or individual and public assistance from the Federal Government under the Robert T. Stafford Disaster Relief and Emergency Assistance Act by reason of a major disaster the incident period of which begins or ends in calendar year 2017 or 2018. Notwithstanding section 201, for purposes of the preceding sentence, the term "incident period" means the period specified by the Federal Emergency Management Agency as the period during which the disaster occurred.

(2) OTHER DEFINITIONS. — Terms used in this section which are also used in section 42 of the Internal Revenue Code of 1986 shall have the same meaning in this section as in such section 42.

SEC. 208. TREATMENT OF CERTAIN POSSESSIONS.

(a) PAYMENTS TO POSSESSIONS WITH MIRROR CODE TAX SYSTEMS. — The Secretary of the Treasury shall pay to each possession of the United States which has a mirror code tax system amounts equal to the loss (if any) to that possession by reason of the application of the provisions of this title. Such amounts shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession.

(b) PAYMENTS TO OTHER POSSESSIONS. — The Secretary of the Treasury shall pay to each possession of the United States which does not have a mirror code tax system amounts estimated by the Secretary of the Treasury as being equal to the aggregate benefits (if any) that would have been provided to residents of such possession by reason of the provisions of this title if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply unless the respective possession has a plan, which has been approved by the Secretary of the Treasury, under which such possession will promptly distribute such payments to its residents.

(c) MIRROR CODE TAX SYSTEM. — For purposes of this section, the term "mirror code tax system" means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States.

(d) TREATMENT OF PAYMENTS. — For purposes of section 1324 of title 31, United States Code, the payments under this section shall be treated in the same manner as a refund due from a credit provision referred to in subsection (b)(2) of such section.

TITLE III — OTHER PROVISIONS

SEC. 301. MODIFICATION OF INCOME FOR PURPOSES OF DETERMINING TAX-EXEMPT STATUS OF CERTAIN MUTUAL OR COOPERATIVE TELEPHONE OR ELECTRIC COMPANIES.

(a) IN GENERAL. — Section 501(c)(12) is amended by adding at the end the following new subparagraph:

"(J) In the case of a mutual or cooperative telephone or electric company described in this paragraph, subparagraph (A) shall be applied without taking into account any income received or accrued from —

"(i) any grant, contribution, or assistance provided pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act or any similar grant, contribution, or assistance by any local, State, or regional governmental entity for the purpose of relief, recovery, or restoration from, or preparation for, a disaster or emergency, or

"(ii) any grant or contribution by any governmental entity (other than a contribution in aid of construction or any other contribution as a customer or potential customer) the purpose of which is substantially related to providing, constructing, restoring, or relocating electric, communication, broadband, internet, or other utility facilities or services.".

(b) EFFECTIVE DATE. — The amendment made by this section shall apply to taxable years beginning after December 31, 2017.

SEC. 302. REPEAL OF INCREASE IN UNRELATED BUSINESS TAXABLE INCOME FOR CERTAIN FRINGE BENEFIT EXPENSES.

(a) IN GENERAL. — Section 512(a) is amended by striking paragraph (7).

(b) EFFECTIVE DATE. — The amendment made by this section shall take effect as if included in the amendments made by section 13703 of Public Law 115–97.

Speaker of the House of Representatives.

Vice President of the United States and President of the Senate.

DOCUMENT ATTRIBUTES

Institutional Authors
U.S. House of Representatives
U.S. Senate
Code Sections
Section 4191
Section 4980I
Section 401
Section 529
Section 108
Subject Area/Tax Topics
Benefits and pensions
Credits
Energy taxation
Exemptions and deductions
Healthcare taxation
Insurance
Tax preference items and incentives
Industry Groups
Energy
Health care
Insurance
Transportation
Jurisdictions
United States
Tax Analysts Document Number
2019-48415
Tax Analysts Electronic Citation
2019 TNTF 247-27

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