TITLE II-EXPENSING SEC. 201. INCREASE IN EXPENSING OF CERTAIN DEPRECIABLE BUSI- (a) IN GENERAL.-Subsection (b) of section 179 is amended- 26 USC 179. (1) by striking "($125,000 in the case of taxable years beginning after 2006 and before 2011)" in paragraph (1) and inserting "($250,000 in the case of taxable years beginning after 2007 and before 2011)", (2) by striking "($500,000 in the case of taxable years beginning after 2006 and before 2011)" in paragraph (2) and inserting "($800,000 in the case of taxable years beginning after 2007 and before 2011)", (3) by striking paragraphs (5) and (7), and (4) by redesignating paragraph (6) as paragraph (5). (b) EFFECTIVE DATE.-The amendments made by this section shall apply to taxable years beginning after December 31, 2009. TITLE III-QUALIFIED TAX CREDIT SEC. 301. ISSUER ALLOWED REFUNDABLE CREDIT FOR CERTAIN (a) CREDIT ALLOWED.-Section 6431 is amended by adding at the end the following new subsection: "(f)_APPLICATION OF SECTION TO CERTAIN QUALIFIED TAX CREDIT BONDS.— "(1) IN GENERAL.-In the case of any specified tax credit bond "(A) such bond shall be treated as a qualified bond for purposes of this section, "(B) subsection (a) shall be applied without regard to the requirement that the qualified bond be issued before January 1, 2011, "(C) the amount of the payment determined under subsection (b) with respect to any interest payment due under such bond shall be equal to the lesser of— "(i) the amount of interest payable under such bond on such date, or "(ii) the amount of interest which would have been payable under such bond on such date if such interest were determined at the applicable credit rate determined under section 54A(b)(3), "(D) interest on any such bond shall be includible in gross income for purposes of this title, "(E) no credit shall be allowed under section 54A with respect to such bond, "(F) any payment made under subsection (b) shall not be includible as income for purposes of this title, and "(G) the deduction otherwise allowed under this title to the issuer of such bond with respect to interest paid under such bond shall be reduced by the amount of the payment made under this section with respect to such interest. Applicability. 26 USC 54. Applicability. 26 USC 6431 note. 26 USC 54F note. Surface Transportation Extension Act of 2010. "(2) SPECIAL RULE FOR NEW CLEAN RENEWABLE ENERGY BONDS AND QUALIFIED ENERGY CONSERVATION BONDS.-In the case of any specified tax credit bond described in clause (i) or (ii) of paragraph (3)(A), the amount determined under paragraph (1)(C)(ii) shall be 70 percent of the amount so determined without regard to this paragraph and sections 54C(b) and 54D(b). "(3) SPECIFIED TAX CREDIT BOND.-For purposes of this subsection, the term 'specified tax credit bond' means any qualified tax credit bond (as defined in section 54A(d)) if— "(A) such bond is "(i) a new clean renewable energy bond (as defined in section 54C), "(ii) a qualified energy conservation bond (as defined in section 54D), "(iii) a qualified zone academy bond (as defined in section 54E), or "(iv) a qualified school construction bond (as defined in section 54F), and "(B) the issuer of such bond makes an irrevocable election to have this subsection apply.". (b) TECHNICAL CORRECTIONS RELATING TO QUALIFIED SCHOOL CONSTRUCTION BONDS. (1) The second sentence of section 54F(d)(1) is amended by striking "by the State" and inserting "by the State education agency (or such other agency as is authorized under State law to make such allocation)". (2) The second sentence of section 54F(e) is amended by striking "subsection (d)(4)" and inserting "paragraphs (2) and (4) of subsection (d)". (1) IN GENERAL.-The amendment made by subsection (a) shall apply to bonds issued after the date of the enactment of this Act. (2) TECHNICAL CORRECTIONS.-The amendments made by subsection (b) shall take effect as if included in section 1521 of the American Recovery and Reinvestment Tax Act of 2009. TITLE IV-EXTENSION OF CURRENT SURFACE TRANSPORTATION PRO Incorporation by reference. Termination date. This title may be cited as the "Surface Transportation Extension Act of 2010". Subtitle A-Federal-aid Highways SEC. 411. IN GENERAL. (a) IN GENERAL.-Except as provided in this Act, requirements, authorities, conditions, eligibilities, limitations, and other provisions authorized under titles I, V, and VI of the SAFETEA-LU (119 Stat. 1144), the SAFETEA-LU Technical Corrections Act of 2008 (122 Stat. 1572), titles I and VI of the Intermodal Surface Transportation Act of 1991 (105 Stat. 1914), titles I and V of the Transportation Equity Act for the 21st Century (112 Stat. 107), and title 23, United States Code (excluding chapter 4 of that title), which would otherwise expire on or cease to apply after September 30, 2009, or the date specified in section 106(3) of the Continuing Appropriations Resolution, 2010 (Public Law 111-68), are incorporated by reference and shall continue in effect until December 31, 2010. (b) AUTHORIZATION OF APPROPRIATIONS.-Except as provided in section 412, there are authorized to be appropriated out of the Highway Trust Fund (other than the Mass Transit Account)— (1) for fiscal year 2010, a sum equal to the total amount authorized to be appropriated out of the Highway Trust Fund for programs, projects, and activities for fiscal year 2009 under titles I, V, and VI of the SAFETEA-LU (119 Stat. 1144), and title 23, United States Code (excluding chapter 4 of that title); and (2) for the period beginning on October 1, 2010, and ending Time period. on December 31, 2010, a sum equal to 1/4 of the total amount authorized to be appropriated out of the Highway Trust Fund for programs, projects, and activities for fiscal year 2009 under titles I, V, and VI of the SAFETEA-LU (119 Stat. 1144), and title 23, United States Code (excluding chapter 4 of that title). (c) USE OF FUNDS.— (1) FISCAL YEAR 2010.-Except as otherwise expressly provided in this Act, funds authorized to be appropriated under subsection (b)(1) for fiscal year 2010 shall be distributed, administered, limited, and made available for obligation in the same manner and at the same level as funds authorized to be appropriated out of the Highway Trust Fund for fiscal year 2009 to carry out programs, projects, activities, eligibilities, and requirements under the SAFETEA-LU (119 Stat. 1144), the SAFETEA-LU Technical Corrections Act of 2008 (122 Stat. 1572), titles I and VI of the Intermodal Surface Transportation Act of 1991 (105 Stat. 1914), titles I and V of the Transportation Equity Act for the 21st Century (112 Stat. 107), and title 23, United States Code (excluding chapter 4 of that_title). (2) FISCAL YEAR 2011.-Except as otherwise expressly provided in this Act, funds authorized to be appropriated under subsection (b)(2) for the period beginning on October 1, 2010, and ending on December 31, 2010, shall be distributed, administered, limited, and made available for obligation in the same manner and at the same level as 1/4 of the total amount of funds authorized to be appropriated out of the Highway Trust Fund for fiscal year 2009 to carry out programs, projects, activities, eligibilities, and requirements under the SAFETEA-LU (119 Stat. 1144), the SAFETEA-LU Technical Corrections Act of 2008 (122 Stat. 1572), titles I and VI of the Intermodal Surface Transportation Act of 1991 (105 Stat. 1914), titles I and V of the Transportation Equity Act for the 21st Century (112 Stat. 107), and title 23, United States Code (excluding chapter 4 of that title). (3) CALCULATION.-The amounts authorized to be appropriated under subsection (b) shall be calculated without regard to any rescission or cancellation of funds or contract authority Time period. Time period. for fiscal year 2009 under the SAFETEA-LU (119 Stat. 1144) or any other law. (4) CONTRACT AUTHORITY.— (A) IN GENERAL.-Except as provided in subparagraph (B), funds authorized to be appropriated under this section shall be available for obligation and shall be administered in the same manner as if such funds were apportioned under chapter 1 of title 23, United States Code, and— (i) for fiscal year 2010, shall be subject to a limitation on obligations for Federal-aid highways and highway safety construction programs included in an Act making appropriations for fiscal year 2010 or a portion of that fiscal year; and (ii) for the period beginning on October 1, 2010, and ending on December 31, 2010, shall be subject to a limitation on obligations included in an Act making appropriations for fiscal year 2011 or a portion of that fiscal year, except that during such period obligations subject to such limitation shall not exceed 1/4 of the limitation on obligations included in an Act making appropriations for fiscal year 2011. (B) EXCEPTIONS.-A limitation on obligations described in clause (i) or (ii) of subparagraph (A) shall not apply to any obligation under or (i) section 125 of title 23, United States Code; (ii) section 105 of title 23, United States Code- (II) for the period beginning on October 1, 2010, and ending on December 31, 2010, only in an amount equal to $159,750,000. (5) CALCULATIONS FOR DISTRIBUTION OF OBLIGATION LIMITATION. Upon enactment of an Act making appropriations for the Department of Transportation for fiscal year 2011 (other than an Act or resolution making continuing appropriations), the Secretary shall (A) as necessary for purposes of making the calculations for the distribution of any obligation limitation under such Act, annualize the amount of contract authority provided under this Act for Federal-aid highways and highway safety construction programs; and (B) multiply the resulting distribution of any obligation limitation under such Act by 14. (d) EXTENSION AND FLEXIBILITY FOR CERTAIN ALLOCATED PROGRAMS. (1) FISCAL YEAR 2010.-Notwithstanding any other provision of law, for fiscal year 2010, the portion of the share of funds of a State under subsection (b)(1) determined by the amount that the State received or was authorized to receive for fiscal year 2009 to carry out sections 1301, 1302, 1307, 1702, and 1934 of the SAFETEA-LU (119 Stat. 1198, 1204, 1217, 1256, and 1485), and section 144(f)(1) of title 23, United States Code, shall be (A) made available to the State for programs apportioned under sections 104(b) and 144 of title 23, United States Code, and in the same proportion for each such program that (i) the amount apportioned to the State for that program for fiscal year 2009; bears to (ii) the amount apportioned to the State for fiscal year 2009 for all programs apportioned under such sections of such Code; and (B) administered in the same manner and with the same period of availability as such funding is administered under programs identified in subparagraph (A), except that no funds may be used to carry out the project described in section 1307(d)(1) of the SAFETEA-LU (119 Stat. 1217; 122 Stat. 1577). (2) FISCAL YEAR 2011.-Notwithstanding any other provision of law, for the period beginning on October 1, 2010, and ending on December 31, 2010, the portion of the share of funds of a State under subsection (b)(2) determined by 1/4 of the amount that the State received or was authorized to receive for fiscal year 2009 to carry out sections 1301, 1302, 1307, 1702, and 1934 of the SAFETEA-LU (119 Stat. 1198, 1204, 1217, 1256, and 1485) and section 144(f)(1) of title 23, United States Code, shall be (A) made available to the State for programs apportioned under sections 104(b) and 144 of title 23, United States Code, and in the same proportion for each such program that— (i) the amount apportioned to the State for that program for fiscal year 2009; bears to (ii) the amount apportioned to the State for fiscal year 2009 for all programs apportioned under such sections of such Code; and (B) administered in the same manner and with the same period of availability as such funding is administered under programs identified in subparagraph (A), except that no funds may be used to carry out the project described in section 1307(d)(1) of the SAFETEA-LU (119 Stat. 1217; 122 Stat. 1577). (3) TERRITORIES AND PUERTO RICO. (A) FISCAL YEAR 2010.-Notwithstanding any other provision of law, for fiscal year 2010, the portion of the share of funds of a territory or Puerto Rico under paragraph (b)(1) determined by the amount that the territory or Puerto Rico received or was authorized to receive for fiscal year 2009 to carry out section 1934 of SAFETEA-LU (119 Stat. 1485), shall be (i) for a territory, made available and administered in the same manner as funding is made available and administered under section 215 of title 23, United States Code; and (ii) for Puerto Rico, made available and administered in the same manner as funding is made available and administered under section 165 of title 23, United States Code. (B) FISCAL YEAR 2011.-Notwithstanding any other provision of law, for the period beginning on October 1, 2010, and ending on December 31, 2010, the_portion of the share of funds of a territory or Puerto Rico under |