Bipartisan Budget Act of 2018
DIVISION A--HONORING HOMETOWN HEROES ACT
Honoring Hometown Heroes Act
(Sec. 10102) This division authorizes the governor of a state, territory, or possession of the United States or the Mayor of the District of Columbia to proclaim that the U.S. flag shall be flown at half-staff in the event of the death of a first responder (public safety officer) working in such jurisdiction who dies while serving in the line of duty.
DIVISION B--SUPPLEMENTAL APPROPRIATIONS, TAX RELIEF, AND MEDICAID CHANGES RELATING TO CERTAIN DISASTERS AND FURTHER EXTENSION OF CONTINUING APPROPRIATIONS
Subdivision 1--Further Additional Supplemental Appropriations for Disaster Relief Requirements Act, 2018
Further Additional Supplemental Appropriations for Disaster Relief Requirements Act, 2018
This subdivision provides emergency supplemental FY2018 appropriations to several federal departments and agencies for expenses related to the consequences of recent hurricanes, wildfires, and other natural disasters.
The funding provided by this subdivision is designated as emergency spending, which is exempt from discretionary spending limits and other budget enforcement rules.
TITLE I
This title provides FY2018 appropriations to the Department of Agriculture (USDA) for:
This title also provides FY2018 appropriations to the Department of Health and Human Services for the Food and Drug Administration.
(Sec. 20101) This section amends the Agricultural Act of 2014 to modify USDA's permanent disaster assistance programs to:
The amendments made by this section apply to losses incurred on or after January 1, 2017.
TITLE II
This title provides FY2018 appropriations for the Department of Commerce, the Department of Justice, science agencies, and related agencies.
Within Commerce, the bill provides appropriations to the Economic Development Administration for Economic Development Assistance Programs.
Also within Commerce, this title provides appropriations to the National Oceanic and Atmospheric Administration (NOAA) for:
Within the Department of Justice, the title provides appropriations for:
For science agencies, the title provides appropriations for: (1) the National Aeronautics and Space Administration (NASA), and (2) the National Science Foundation.
The title also provides appropriations for the Legal Services Corporation.
(Sec. 20201) For certain projects in Louisiana, Commerce must waive provisions of the Marine Mammal Protection Act relating to the moratorium on the taking and importation of marine mammals and marine mammals.
Commerce must waive the provisions within 120 days of enactment of this bill, and no rulemaking, permit, determination, or other condition or limitation may be required when issuing the waiver. The waiver must remain in effect for the duration of the construction, operations, and maintenance of the Mid-Barataria Sediment Diversion, Mid-Breton Sound Sediment Diversion, and Calcasieu Ship Channel Salinity Control Measures projects.
Upon the issuance of the waiver, Louisiana must: (1) to the extent practicable and consistent with the purposes of the projects, minimize impacts on marine mammal species and population stocks; and (2) monitor and evaluate the impacts of the projects on such species and population stocks.
TITLE III
This title provides FY2018 appropriations to the Department of Defense (DOD) for:
TITLE IV
This title provides FY2018 appropriation to the U.S. Army Corps of Engineers for:
The title also provides appropriations to the Department of Energy (DOE) for: (1) Electricity Delivery and Energy Reliability, and (2) the Strategic Petroleum Reserve (SPR).
(Sec. 20401) The Corps of Engineers must submit to Congress monthly estimates of damages to each Corps of Engineers project.
(Sec. 20402) The section transfers unobligated balances from the Corps of Engineers Flood Control and Coastal Emergencies and Operation and Maintenance accounts to the Construction account to be used for rehabilitation, repair, and construction of certain Corps of Engineer projects.
TITLE V
This title provides FY2018 appropriations to independent agencies, including the General Services Administration (GSA) and the Small Business Administration (SBA).
For the GSA, the bill provides appropriations to the Federal Buildings Fund.
The title provides appropriations to the SBA for: (1) the Office of Inspector General, and (2) the Disaster Loans Program Account.
TITLE VI
This title provides FY2018 appropriations to the Department of Homeland Security (DHS) for:
Within DHS, this title also provides appropriations to Federal Emergency Management Agency (FEMA) for:
(Sec. 20601) FEMA may provide assistance for critical services in Puerto Rico and the U.S. Virgin Islands for the duration of the recovery from Hurricanes Maria and Irma and to replace or restore: (1) the function of a facility or system to industry standards without regard to the pre-disaster condition, and (2) components of the facility or system not damaged by the disaster where necessary to fully effectuate the replacement or restoration of disaster-damaged components to restore the function of the facility or system to industry standards.
(Sec. 20602) This section provides hazard mitigation assistance to recipients of Fire Management Assistance Grants for FY2017 and FY2018.
(Sec. 20603) This section extends the period of time that local government revenue loss and projected cash outlays as a result of Hurricanes Harvey, Irma, and Maria may be considered for the purpose of Community Disaster Loans.
(Sec. 20604) This section amends the Robert T. Stafford Disaster Relief and Emergency Assistance Act (Stafford Act) to specify that the private nonprofit facilities that may qualify for certain federal disaster assistance programs include facilities that provide essential social services to the public, community centers, houses of worship, and religious nonprofit organizations.
It also specifies that religious facilities are eligible for assistance for the repair, restoration, and replacement of damaged facilities, without regard to the religious character of the facility or the primary religious use of the facility.
(Sec. 20605) This section specifies that the federal cost share is 90% for debris removal costs related to major disasters declared as a result of a wildfire in 2017.
(Sec. 20606) The President may increase the federal cost share for certain disaster assistance from 75% to 85% if recipients have invested in specified measures that increase readiness for, and resilience from, a major disaster.
(Sec. 20607) This section amends the Consolidated Appropriations Act, 2017 to provide premium pay authority, overtime authority, and exemptions from certain limitations on pay for federal employees who worked overtime in response to disasters in calendar year 2017.
TITLE VII
This title provides FY2018 appropriations to the Department of the Interior for:
The title also provides appropriations to the Environmental Protection Agency (EPA) for:
The title waives matching and cost share requirements for certain EPA funds that were previously appropriated for capitalization grants for the State Revolving Funds under Federal Water Pollution Control Act (commonly known as the Clean Water Act) or the Safe Drinking Water Act to a state or territory included in a disaster declaration related to Hurricanes Irma and Maria. The title also specifies requirements regarding the use of the funds.
Additionally, this title provides appropriations to the USDA for the Forest Service, including for:
(Sec. 20701) Agencies receiving funds provided by this title must submit monthly reports to Congress detailing the allocation and obligation of the funds by account.
TITLE VIII
This title provides FY2018 appropriations to the Department of Labor, the Department of Health and Human Services (HHS), the Department of Education (ED), and related agencies.
The title provides appropriations to Labor for the Employment and Training Administration, including for: (1) Training and Employment Services, and (2) Job Corps.
(Sec. 20801) This section allows the U.S. Virgin Islands to delay an Unemployment Insurance debt payment for one year without interest accruing.
(Sec. 20802) Local workforce areas affected by Hurricanes Harvey, Irma, and Maria may, with the approval of the governor, transfer 100% of the 2016 and 2017 funds provided under the Workforce Innovation and Opportunity Act (WIOA) for Youth Workforce Investment activities among the Adult, Youth, and Dislocated Worker training categories.
Within HHS, this title provides appropriations to:
(Sec. 20803) This section provides HHS with temporary direct hiring authority for positions to perform critical work directly related to the consequences of Hurricanes Harvey, Irma, and Maria, including: (1) intermittent disaster response personnel in the National Disaster Medical System, and (2) term or temporary related positions in the CDC and the Office of the Assistant Secretary for Preparedness and Response.
The title also provides appropriations to ED for Hurricane Education Recovery to assist in meeting the educational needs of individuals affected natural disasters or emergencies.
(Sec. 20804) This section forgives loans made by ED to Historically Black Colleges and Universities (HBCUs) in response to Hurricane Katrina under the HBCU Hurricane Supplemental Loan program.
(Sec. 20805) This section provides authority and requirements for the transfer of certain funds provided to HHS by this title.
(Sec. 20806) HHS must submit to Congress specified spending plans and updates regarding the uses of funds provided by this title.
(Sec. 20807) Unless otherwise provided for by this title, the additional funds provided by this title for appropriations accounts are subject to the same authorities and conditions that apply to the accounts for FY2018.
TITLE IX
This title provides FY2018 appropriations to the Government Accountability Office for audits and investigations relating to Hurricanes Harvey, Irma, and Maria and the 2017 wildfires.
TITLE X
This title provides FY2018 appropriations to DOD for Military Construction for: (1) the Navy and Marine Corps, and (2) the Army National Guard.
It also provides appropriations to the Department of Veterans Affairs (VA) for the Veterans Health Administration, including for:
This title also provides appropriations to the VA for Departmental Administration, including Construction--Minor Projects.
(Sec. 21001) DOD must contribute to Puerto Rico 100% of the total cost of construction (including the cost of architectural, engineering and design services) for the acquisition, construction, expansion, rehabilitation, or conversion of the Arroyo readiness center.
TITLE XI
This title provides FY2018 appropriations to the Department of Transportation (DOT) for:
(Sec. 21101) The FTA may distribute formula funding for certain programs using the 2000 Census for areas that lost their "urbanized" area designation because the population fell below 50,000 after the 2000 census as a result of a major disaster.
This title also provides appropriations to the Department of Housing and Urban Development (HUD) for Community Planning and Development, including the Community Development Fund.
(Sec. 21102) Funds provided for the Community Development Fund that remain available after the other funds for the account have been allocated for authorized activities may be used for additional mitigation activities in the most impacted and distressed areas resulting from a major declared disaster that occurred in 2014, 2015, 2016, or 2017.
(Sec. 21103) HUD may adjust Section 8 voucher funding and administrative fee eligibility determinations for public housing agencies located in the most impacted and distressed areas in which a major presidentially declared disaster occurred during 2017.
TITLE XII
(Sec. 21201) The funds provided by this subdivision are in addition to the amounts otherwise provided for the fiscal year involved.
(Sec. 21202) No appropriation provided by this subdivision may remain available beyond the current fiscal year, unless the subdivision expressly provides otherwise.
(Sec. 21203) Unless otherwise specified in this subdivision, the additional funds provided by this subdivision for appropriations accounts are provided under the authorities and conditions applicable to the accounts for FY2018.
(Sec. 21204) Funds provided by this subdivision that are designated by Congress as an emergency requirement are only available if the President subsequently designates all of the amounts and transmits the designations to Congress.
(Sec. 21205) For purposes of this subdivision, the consequences or impacts of any hurricane include damages caused by the storm at any time during the entirety of its duration as a cyclone, as defined by the National Hurricane Center.
(Sec. 21206) Funds that are provided by this subdivision and designated as an emergency requirement shall retain the designation if the funds are transferred under authorities provided by this subdivision.
(Sec. 21207) The terms and conditions that apply to funds provided by this subdivision also apply to funds provided by division B (Supplemental Appropriations for Disaster Relief Requirements, 2017) of P.L 115-56 and division A (Additional Supplemental Appropriations for Disaster Relief Requirements Act of 2017) of P.L. 115-72.
(Sec. 21208) This section amends the Additional Supplemental Appropriations for Disaster Relief Requirements Act, 2017 to: (1) modify requirements for reporting the use of funds, deeming programs and activities to be susceptible to significant improper payments, and the time frame for spending grants; and (2) apply the requirements to the funds provided by this division.
The Office of Management and Budget must issue standard guidance for federal agencies to use in designing internal control plans for disaster relief funding.
(Sec. 21209) If this subdivision provides more than $3 billion to an agency (including FEMA, HUD, and the Corps of Engineers), the agency must report to Congress regarding its efforts to provide adequate resources and technical assistance for small, low-income communities affected by natural disasters.
(Sec. 21210) The governor of Puerto Rico, in coordination and with support and contributions from specified federal agencies, must submit to Congress specified reports and status updates regarding Puerto Rico's 12- and 24-month economic and disaster recovery plan.
The Oversight Board established by the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) may review amounts greater than $10 million that are provided by this subdivision to a covered territory for response to or recovery from Hurricane Irma or Hurricane Maria.
When developing a Fiscal Plan while the recovery plan required under this section is in development and in effect, the Oversight Board must use and incorporate, to the greatest extent feasible, damage assessments prepared pursuant to federal law.
Subdivision 2--Tax Relief and Medicaid Changes Relating To Certain Disasters
TITLE I--CALIFORNIA FIRES
This title amends the Internal Revenue Code to allow various tax credits, deductions, and modifications to existing rules for individuals and businesses affected by wildfires in California.
(Sec. 20101) A "California wildfire disaster zone" is the portion of the California wildfire disaster area determined by the President to warrant federal assistance under the Stafford Act by reason of wildfires in California.
A "California wildfire disaster area" is an area with respect to which between January 1, 2017, through January 18, 2018, a major disaster has been declared by the President under the Stafford Act by reason of wildfires in California.
(Sec. 20102) This section waives the 10% additional tax on early distributions from retirement plans for up to $100,000 in qualified wildfire distributions.
A "qualified wildfire distribution" must be made on or after October 8, 2017, and before January 1, 2019, to an individual: (1) whose principal place of abode during any portion of the period from October 8, 2017, to December 31, 2017, is located in the California wildfire disaster area, and (2) who has sustained an economic loss by reason of the wildfires to which the declaration of the area relates.
A taxpayer who has received such a distribution may: (1) repay the distribution by making additional contributions to a retirement account within three years, and (2) include the distribution in gross income by dividing the amount over a three-year period.
This section also: (1) permits individuals to recontribute funds to retirement plans if the funds were distributed for a home purchase in a California wildfire disaster area that was cancelled on account of the wildfires, and (2) increases the limit and extends the repayment deadline for loans from retirement plans.
(Sec. 20103) This section allow an employee retention tax credit for employers affected by the California wildfires. The credit is equal to 40% of the qualified wages (up to $6,000 per employee) paid to an employee whose principal place of employment on October 8, 2017, with the employer was in the California wildfire disaster zone.
"Qualified wages" include wages that: (1) are paid or incurred on or after October 8, 2017, and before January 1, 2018; and (2) occurred during the period that begins when the trade or business became inoperable at the principal place of employment of the employee immediately before the wildfires and ends when the trade or business has resumed significant operations.
(Sec. 20104) The section modifies the deduction for charitable contributions to temporarily suspend the limitations on charitable contributions made during the period beginning on October 8, 2017, and ending on December 31, 2018, for relief efforts in the California wildfire disaster area.
The section also modifies the deduction for personal casualty losses in the California wildfire disaster areas to eliminate: (1) the requirement for losses to exceed 10% of adjusted gross income to qualify for the deduction, and (2) the requirement to itemize.
For the purposes of determining earned income for the earned income tax credit and the child tax credit, certain taxpayers affected by the California wildfires may use earned income from the immediately preceding year.
TITLE II--TAX RELIEF FOR HURRICANES HARVEY, IRMA, AND MARIA
(Sec. 20201) This title amends the Disaster Tax Relief and Airport and Airway Extension Act of 2017 to modify the Hurricanes Harvey and Irma Disaster Areas to include areas with respect to which a major disaster has been declared by the President before October 17, 2017 (before September 21, 2017, under current law) under the Stafford Act by reasons of Hurricanes Harvey or Irma.
TITLE III--HURRICANE MARIA RELIEF FOR PUERTO RICO AND THE VIRGIN ISLANDS MEDICAID PROGRAMS
(Sec. 20301) This title increases Medicaid funding for Puerto Rico and the U.S. Virgin Islands through FY2019. Such funding shall be further increased through 2019 for each territory if the territory takes specified actions to improve its Medicaid program. The division also increases the federal medical assistance percentage (FMAP) for the additional funds to 100%.
TITLE IV--BUDGETARY EFFECTS
(Sec. 20401) This section designates this subdivision as an emergency requirement pursuant to the Statutory Pay-As-You-Go (PAYGO) Act of 2010. (This prohibits the budgetary effects of this subdivision from being counted for the purpose of PAYGO rules that prohibit certain revenue and direct spending legislation from increasing the deficit.)
(Sec. 20402) In the Senate, this subdivision is designated as an emergency requirement pursuant to the FY2018 congressional budget resolution. (Emergency spending is exempt from discretionary spending limits and other budget enforcement rules.)
Subdivision 3--Further Extension of Continuing Appropriations Act, 2018
Further Extension of Continuing Appropriations Act, 2018
(Sec. 20101) This subdivision amends the Continuing Appropriations Act, 2018 to provide continuing FY2018 appropriations to federal agencies through March 23, 2018 (February 8, 2018, under current law).
It ends the government shutdown that began when the existing continuing resolution (CR) expired because the FY2018 appropriations bills have not been enacted.
The subdivision also:
DIVISION C--BUDGETARY AND OTHER MATTERS
TITLE I--BUDGET ENFORCEMENT
(Sec. 30101) This title amends the Balanced Budget and Emergency Deficit Control Act of 1985 to increase the defense and nondefense discretionary spending limits for FY2018 and FY2019.
The title revises procedures for implementing the sequester of direct spending, which is required under current law and involves cuts that interact with discretionary spending levels. The title requires the sequester to take place in FY2018 and FY2019 as if the amendments that this title makes to the discretionary spending limits have not been made.
It also extends the sequester for mandatory spending through FY2027 (currently through FY2025) and adjusts the cuts required for Medicare.
(Direct spending, also known as mandatory spending, is spending provided by laws other than appropriations bills. Sequestration is a process of automatic, usually across-the-board spending reductions under which budgetary resources are permanently cancelled to enforce specific budget policy goals.)
(Sec. 30102) This section resets the balances on the scorecards established by the Statutory Pay-As-You-Go Act of 2010 (PAYGO) to zero.
(Sec. 30103) After April 15, 2018, but not later than May 15, 2018, the chairman of the Senate Budget Committee must file committee allocations, aggregate spending and revenue levels, and levels of Social Security revenues and outlays consistent with this bill. The chairman may also include the deficit neutral reserve funds contained in the FY2018 budget resolution updated by one fiscal year.
After April 15, 2018, the allocations, aggregates, and levels submitted by the chairman are enforceable in the Senate as if they were included in a FY2019 congressional budget resolution.
This section expires if Congress agrees to a budget resolution for FY2019.
(Sec. 30104) After April 15, 2018, but not later than May 15, 2018, the chairman of the House Budget Committee must submit for publication in the Congressional Record committee allocations, aggregate spending levels, and aggregate revenue levels consistent with this bill.
If a FY2019 congressional budget resolution has not been adopted by April 15, 2018, the allocations, aggregates, and levels submitted by the chairman are enforceable in the House of Representatives as if they were included in a FY2019 congressional budget resolution.
The chairman may adjust the levels to reflect the budgetary effects of any legislation enacted during the 115th Congress that reduces the deficit or as otherwise necessary.
This section expires if Congress agrees to a budget resolution for FY2019.
(Sec. 30105) This section specifies that section 30103 and section 30104 are enacted under the rulemaking powers of the Senate and the House of Representatives and will be considered part of the rules of each chamber. It also recognizes that each chamber has the authority to change the rules.
TITLE II--OFFSETS
(Sec. 30201) This section amends the Consolidated Omnibus Budget Reconciliation Act of 1985 to extend the authority of Treasury to collect certain customs user fees.
It also amends the United States--Korea Free Trade Agreement Implementation Act to extend the increased rate for merchandise processing fees.
(Sec. 30202) This section extends the requirement for DOT to deposit into the Treasury a portion of the aviation security service fees charged to passengers of air carriers.
(Sec. 30203) This section amends the Immigration and Nationality Act and the Air Transportation Safety and System Stabilization Act to extend certain immigration fees for: (1) using the Electronic System for Travel Authorization to travel to the United States under the Visa Waiver Program, and (2) L-1 (intracompany transferees) and H-1B visas (temporary workers in professions specialty occupations).
(Sec. 30204) DOE must draw down and sell specified oil from the Strategic Petroleum Reserve (SPR) during FY2022-FY2025, FY2026, and FY2027 and deposit the proceeds in the Treasury during the fiscal year in which the sale occurs.
DOE may not draw down and sell crude oil under this section in quantities that would limit the authority to sell petroleum products under the Energy Policy and Conservation Act in order to prevent or reduce adverse impacts of severe domestic energy supply interruptions.
This section amends the Energy Policy and Conservation Act to: (1) modify the conditions for a drawdown for the SPR to require DOE to find that the action will not impair the ability of the U.S. to carry out U.S. obligations under the international energy program, and (2) prohibit a draw down when there are fewer than 450 million (currently 350 million) barrels of petroleum product stored in the SPR.
(Sec. 30205) This section amends the Federal Reserve Act to reduce the limit on the aggregate amount of the surplus funds of the Federal Reserve banks from $10 million to $7.5 million. Under current law, surplus funds that exceed or would exceed the limit must be deposited into the Treasury.
(Sec. 30206) The Department of Labor must award grants for states to conduct a program of reemployment services and eligibility assessments for certain individuals who receive unemployment compensation.
This section also amends the Balanced Budget and Emergency Deficit Control Act of 1985 and the Congressional Budget Act of 1974 to require discretionary spending limits, committee allocations, and budget aggregates to be adjusted, subject to specified limits, for legislation that appropriates more than $117 million for a fiscal year for the grants.
TITLE III--TEMPORARY EXTENSION OF PUBLIC DEBT LIMIT
(Sec. 30301) The public debt limit is suspended through March 1, 2019. On March 2, 2019, the limit is increased to accommodate obligations issued during the suspension period.
Adjustments to the debt limit for obligations during the suspension period are limited to obligations necessary to fund a commitment incurred by the federal government that required payment before March 2, 2019. The Department of the Treasury may not issue obligations during the suspension period to increase cash balances above normal operating balances.
TITLE IV--JOINT SELECT COMMITTEES
Subtitle A--Joint Select Committee on Solvency of Multiemployer Pension Plans
(Sec. 30422) This subtitle establishes a joint select committee of Congress to provide recommendations and legislative language that will significantly improve the solvency of multiemployer pension plans and the Pension Benefit Guaranty Corporation.
The joint committee terminates on December 31, 2018, or 30 days after submission of its report and legislative recommendations, whichever occurs first.
(Sec. 30423) The Senate may allocate up to $500,000 from the special reserve within the Expenses of Inquiries and Investigations account for use by the joint committee. None of the funds provided by this section may be obligated by the joint committee after January 2, 2019.
(Sec. 30424) The Senate must consider legislation proposed by the joint committee using specified expedited legislative procedures.
Subtitle B--Joint Select Committee on Budget and Appropriations Process Reform
(Sec. 30442) This subtitle establishes a joint select committee of Congress to provide recommendations and legislative language that will significantly reform the budget and appropriations process.
The joint committee terminates on December 31, 2018, or 30 days after submission of its report and legislative recommendations, whichever occurs first.
(Sec. 30443) The Senate may allocate up to $500,000 from the special reserve within the Expenses of Inquiries and Investigations account for use by the joint committee. None of the funds provided by this section may be obligated by the joint committee after January 2, 2019.
(Sec. 30444) The Senate must consider legislation proposed by the joint committee using specified expedited legislative procedures.
DIVISION D--REVENUE MEASURES
This division amends the Internal Revenue Code to extend various expiring tax provisions and modify several tax credits, deductions, and requirements.
TITLE I--EXTENSION OF EXPIRING PROVISIONS
Subtitle A--Tax Relief For Families And Individuals
(Sec. 40201) This section extends through 2017 the exclusion from gross income for the discharge of qualified principal residence indebtedness.
(Sec. 40202) This section extends through 2017 the treatment of mortgage insurance premiums as qualified residence interest.
(Sec. 40203) This section extends through 2017 the above-the-line deduction for qualified tuition and related expenses.
Subtitle B--Incentives For Growth, Jobs, Investment, And Innovation
(Sec. 40301) This section extends through 2017 the Indian employment credit.
(Sec. 40302) This section extends through 2017 the railroad track maintenance credit.
(Sec. 40303) This section extends through 2017 the mine rescue team training credit.
(Sec. 40304) This section extends through 2017 the classification of certain race horses as three-year property for the purposes of depreciation.
(Sec. 40305) This section extends through 2017 the seven-year recovery period for motorsports entertainment complexes for the purposes of depreciation.
(Sec. 40306) This section extends through 2017 the accelerated depreciation for business property on an Indian reservation.
(Sec. 40307) This section extends through 2017 the election to expense advanced mine safety equipment.
(Sec. 40308) This section extends through 2017 the special expensing rules for certain film, television, and live theatrical productions.
(Sec. 40309) This section extends through 2017 the deduction for income attributable to domestic production activities in Puerto Rico.
(Sec. 40310) This section extends through 2017 the special tax rate for certain timber gains.
(Sec. 40311) This section extends through 2017 the empowerment zone tax incentives.
(Sec. 40312) This section amends the Tax Relief and Health Care Act of 2006 to extend through 2017 the American Samoa economic development credit.
Subtitle C--Incentives For Energy Production And Conservation
(Sec. 40401) This section extends through 2017 the credit for nonbusiness energy property.
(Sec. 40402) This section extends through 2021 the residential energy efficient property credit for fuel cell, small wind, and geothermal heat pump property expenditures. It also reduces the credit rate for the property from 30% to 26% for property placed in service in 2020 and to 22% for property placed in service in 2021.
(Sec. 40403) This section extends through 2017 the alternative motor vehicle credit for new qualified fuel cell motor vehicles.
(Sec. 40404) This section extends through 2017 the credit for alternative fuel vehicle refueling property.
(Sec. 40405) This section extends through 2017 the credit for two-wheeled plug-in electric vehicles.
(Sec. 40406) This section extends through 2017 the second generation biofuel producer credit.
(Sec. 40407) This section extends through 2017: (1) the income tax credit for biodiesel and renewable diesel used as fuel, (2) the excise tax credit for biodiesel mixtures, and (3) the payments that are equivalent to the excise tax credit for biodiesel mixtures.
(Sec. 40408) This section extends through 2017 the production credit for Indian coal facilities.
(Sec. 40409) This section extends through 2017 the beginning-of-construction date for non-wind renewable power facilities eligible to claim the renewable electricity production credit or the credit for investments in energy property in lieu of the production credit.
(Sec. 40410) This section extends through 2017 the credit for energy efficient new homes.
(Sec. 40411) This section modifies the credit for investment in energy property to extend the energy credit for fiber optic solar, fuel cell, microturbine, and combined heat and power system, geothermal heat pump, and small wind property for property with construction that begins before January 1, 2022.
With respect to fiber optic solar, fuel cell, and small wind energy property, the bill: (1) reduces the 30% credit rate to 26% for property with construction that begins in 2020 and to 22% for property with construction that begins in 2021, and (3) requires the property to be placed in service before 2024 to qualify for the credit.
(Sec. 40412) This section extends through 2017 the special depreciation allowance for second generation biofuel plant property.
(Sec. 40413) This section extends through 2017 the deduction for energy efficient commercial buildings.
(Sec. 40414) This section extends through 2017 the tax deferral rules for sales or dispositions of qualified electric facilities to implement Federal Energy Regulatory Commission or state electric restructuring policy.
(Sec. 40415) This section extends through 2017: (1) the excise tax credit for alternative fuels, (2) the excise tax credit for alternative fuel mixtures, and (3) the payments that are equivalent to the excise tax credit for alternative fuels.
(Sec. 40416) This section extends through 2018 the Oil Spill Liability Trust Fund financing rate.
Subtitle D--Modifications Of Energy Incentives
(Sec. 40501) This section modifies the tax credit for the production of electricity from advanced nuclear power facilities to: (1) establish requirements for the allocation of unutilized portions of the national megawatt capacity limitation, and (2) allow public entities to transfer the credit to project partners.
TITLE II--MISCELLANEOUS PROVISIONS
(Sec. 41102) This section extends the increase in the limit on the amount of excise taxes on rum covered over (paid) to the treasuries of Puerto Rico and the Virgin Islands. (Under the provision, the limitation of $13.25 per proof gallon is extended for rum brought into the United States after December 31, 2016, and before January 1, 2022. After December 31, 2021, the limit reverts to $10.50 per proof gallon.)
The amount of excise taxes collected on rum must be determined without regard to the reduced tax rates that apply for 2018 and 2019.
(Sec. 41103) This section amends the Protecting Americans from Tax Hikes Act of 2015 to extend the waiver of limitations on credits or refunds related to the exclusion from gross income of certain civil damages, restitution, or other monetary awards received by wrongfully incarcerated individuals.
(Sec. 41104) This section holds individuals harmless for making certain contributions to retirement plans after an improper levy on a retirement plan.
(Sec. 41105) This section modifies the user fee requirements for installment agreements to: (1) limit the fee to the amount that is in effect on the date of enactment of this section, and (2) require waivers and reimbursements of fees for certain low-income taxpayers.
(Sec. 41106) This section directs the Internal Revenue Service (IRS) to make available to taxpayers who have turned age 65 at the close of the taxable year a new federal income tax Form 1040SR (similar to the existing Form 1040EZ). Such taxpayers may use this new form even if their income includes: (1) Social Security benefits; (2) distributions from qualified retirement plans, annuities, or other such deferred payment arrangements; (3) interest and dividends; or (4) capital gains and losses.
The form must be available without regard to the amount of any item of taxable income or the total amount of taxable income for the taxable year.
(Sec. 41107) This section expands the above-the-line deduction for attorney's fees relating to awards to whistle-blowers to include fees paid in connection with certain actions brought under the Securities Exchange Act of 1934, a state false claims act, or the Commodity Exchange Act.
(Sec. 41108) This section modifies requirements for the IRS to award whistle-blowers a specified percentage of the collected proceeds from an administrative or judicial action, or settlement in the response to the action, based on the information provided by the whistle-blower.
The bill specifies that the term "proceeds" includes (1) penalties, interest, additions to tax, and additional amounts provided under the internal revenue laws; and (2) any proceeds arising from laws for which the IRS is authorized to administer, enforce, or investigate, including: criminal fines and civil forfeitures, and violations of reporting requirements.
The bill also specifies that: (1) the amount of proceeds must be determined without regard to whether such proceeds are available to the IRS, and (2) the disputed amount threshold applies to the amount of proceeds in dispute. (Under current law, the threshold applies to the amount of tax, penalties, interest, additions to tax, and additional amounts in dispute.)
(Sec. 41109) This section modifies the excise tax based on investment income of private colleges and universities to exempt educational institutions that do not have tuition-paying students.
(Sec. 41110) This section creates an exception to the excise tax on excess business holdings for the holdings of a private foundation in any business enterprise that meets specified requirements relating to exclusive ownership, minimum distribution of net operating income for the charitable purpose (all profits to charity distribution requirement), and independent operation (not controlled by a substantial contributor or family members) from the excise taxes on excess business holdings.
(Sec. 41111) Specified provisions of P.L. 115-97 (commonly known as the Tax Cuts and Jobs Act) related to the taxation of alcoholic beverages may not be construed to preempt, supersede, or otherwise limit or restrict any state, local, or tribal law that prohibits or regulates the production or sale of distilled spirits, wine, or malt beverage.
(Sec. 41112) This section modifies requirements for records, statements, and returns for certain breweries.
(Sec. 41113) The Department of the Treasury must modify regulations governing hardship distributions from certain retirement plans to: (1) delete the requirement that an employee be prohibited from making elective deferrals and employee contributions for six months after the receipt of a hardship distribution in order for the distribution to be deemed necessary to satisfy an immediate and heavy financial need, and (2) make any other modifications necessary to carry out the purposes of the rule allowing elective deferrals to be distributed in the case of hardship.
(Sec. 41114) This section allows earnings on elective deferrals under a section 401(k) plan, as well as qualified nonelective contributions and qualified matching contributions (and associated earnings), to be distributed on account of hardship. A distribution is not treated as failing to be on account of hardship solely because the employee does not take any available plan loan.
(Sec. 41115) This section deems population census tracts in Puerto Rico that are low-income communities to be certified and designated as a qualified opportunity zone. (Various tax incentives apply for investments in opportunity zones in low-income areas.)
(Sec. 41116) This section allows certain U.S. citizens or residents living abroad in support of the Armed Forces in a combat zone to be treated as having a tax home in a foreign country.
(Sec. 41117) This section modifies the requirements for returns relating to payments made in settlement of payment card and third party network transactions. A person with only a foreign address may not be treated as a participating payee with respect to any payment settlement entity solely because such person receives payments from such payment settlement entity in dollars.
(Sec. 41118) This section amends the Trade Preferences Extension Act of 2015 to repeal a shift in the time of payment of corporate estimated taxes. It repeals the 8% increase in the amount of the required installment of corporate estimated tax otherwise due in July, August, or September of 2020. It also increases the next required installment to reflect the amount of the decrease due to this provision.
(Sec. 41119) This section extends and modifies the tax credit for carbon dioxide sequestration. The section modifies the credit to apply it to carbon oxide sequestration. (Carbon oxide refers to any of the three oxides of carbon: carbon dioxide, carbon monoxide, and carbon suboxide.)
This section also:
DIVISION E--HEALTH AND HUMAN SERVICES EXTENDERS
TITLE I--CHIP
(Sec. 50101) This title extends funding through FY2027 the Children's Health Insurance Program (CHIP) and the Child Enrollment Contingency Fund.
In addition, the title reauthorizes through FY2027:
(Sec. 50102) The title extends funding through FY2027 for the Pediatric Quality Measures Program and otherwise revises the program.
(Sec. 50103) The title extends funding through FY2027 for CHIP's outreach and enrollment program and otherwise revises the program.
TITLE II--MEDICARE EXTENDERS
(Sec. 50201) This title extends by two years the floor of the Work Geographic Practice Cost Index (which affects how certain Medicare fees are paid in various localities).
(Sec. 50202) The title repeals specified caps on Medicare payment for certain therapy services. However, claims for therapy services beyond specified payment thresholds shall be subject to targeted medical review.
(Sec. 50203) The title extends specified Medicare payment increases related to ground-ambulance services. The Centers for Medicare & Medicaid Services (CMS) must develop a data collection system to collect cost, revenue, utilization, and other information from providers of such services.
(Sec. 50204) The title extends and otherwise revises specified Medicare payment increases for certain low-volume hospitals.
(Sec. 50205) The title extends and otherwise revises the Medicare-Dependent Hospital Program (which provides increased payments to certain smaller, rural hospitals that serve a proportionally high number of Medicare patients).
(Sec. 50206) The title extends funding for certain Medicare quality-measurement activities and requires the Government Accountability Office (GAO) to report on such activities.
(Sec. 50207) The title extends funding for state health-insurance programs, area agencies on aging, aging and disability resource centers, and technical assistance related to outreach and enrollment.
(Sec. 50208) The title extends and otherwise revises specified Medicare payment increases for home-health services furnished in rural counties.
TITLE III--CREATING HIGH-QUALITY RESULTS AND OUTCOMES NECESSARY TO IMPROVE CHRONIC (CHRONIC) CARE
Subtitle A--Receiving High Quality Care in the Home
(Sec. 50301) This subtitle extends and expands the Independence at Home demonstration program, through which comprehensive primary-care services are delivered at home to Medicare beneficiaries with multiple chronic conditions.
(Sec. 50302) A Medicare beneficiary who has end-stage renal disease (ESRD) and is receiving home dialysis may choose to receive monthly ESRD-related visits via telehealth, provided that the beneficiary also receives face-to-face visits periodically. Specified facility fees and geographic requirements shall not apply with respect to the provision of such services via telehealth.
Subtitle B--Advancing Team-Based Care
(Sec. 50311) Current law allows a Medicare Advantage (MA) plan, until 2019, to restrict plan enrollment to individuals who are within one or more classes of special-needs individuals. This subtitle allows an MA plan to do so permanently, provided that the plan meets specified applicable requirements.
The Federal Coordinated Health Care Office within the CMS shall serve as a dedicated point of contact for states with regard to special-needs MA plans for individuals who are dually eligible for Medicaid and Medicare. The CMS shall establish a unified process for grievances and appeals for individuals enrolled in such plans.
The CMS must, with respect to special-needs MA plans for individuals with chronic conditions, convene a panel of clinical advisors to establish and update the list of chronic conditions that make an individual eligible for participation in such a plan.
The CMS shall, with respect to special-needs MA plans, consider applying certain quality measures at the plan level rather than at the contract level.
The GAO must report to Congress on state-level integration between the Medicaid program and special-needs MA plans for individuals who are dually eligible for Medicaid and Medicare.
Subtitle C--Expanding Innovation and Technology
(Sec. 50321) The Center for Medicare & Medicaid Innovation shall expand testing of an MA value-based insurance model that allows MA plans to propose and design benefit structures that vary benefits, cost-sharing, and supplemental benefits with respect to enrollees who have specific chronic diseases. The test model (initially being carried out in specified states) shall be expanded to all states, and may not be terminated prior to 2022.
(Sec. 50322) Beginning in plan year 2020, an MA plan may provide certain supplemental benefits to chronically ill enrollees.
The GAO must report to Congress on the provision of such supplemental benefits to MA enrollees.
(Sec. 50323) Beginning in plan year 2020, an MA plan may provide certain additional telehealth benefits.
(Sec. 50324) With respect to the provision of telehealth services to Medicare fee-for-service (FFS) beneficiaries at home by certain accountable care organizations (ACOs), the home shall be treated as an originating site. In such a case, (1) specified geographic limitations shall generally not apply, (2) the CMS shall not pay an originating-site facility fee, and (3) the CMS shall not pay for services that are inappropriate to furnish in a home setting. The GAO must report to Congress on the implementation of these requirements.
(Sec. 50325) Certain siting requirements applicable under the Medicare program shall not apply to telehealth services furnished after 2018 for purposes of diagnosing, evaluating, or treating an acute stroke. The CMS shall not, with respect to such telehealth services, pay an originating-site facility fee to an originating site that does not meet those requirements.
Subtitle D--Identifying the Chronically Ill Population
(Sec. 50331) This subtitle requires the CMS to: (1) allow certain ACOs to elect prospective, rather than retrospective, assignment of Medicare FFS beneficiaries; and (2) allow a Medicare FFS beneficiary to voluntarily identify an ACO professional as the beneficiary's primary-care provider for purposes of the beneficiary's assignment to an ACO.
Subtitle E--Empowering Individuals and Caregivers in Care Delivery
(Sec. 50341) This subtitle allows certain ACOs to operate incentive-payment programs for beneficiaries who receive qualifying primary-care services.
(Sec. 50342) The GAO must report to Congress on the establishment, under Medicare, of a payment code for longitudinal comprehensive-care planning services.
Subtitle F--Other Policies to Improve Care for the Chronically Ill
(Sec. 50351) The GAO must report to Congress on the extent to which Medicare prescription drug plans (PDPs) and private payors use programs that synchronize pharmacy dispensing to facilitate comprehensive counseling and promote medication adherence.
(Sec. 50352) The GAO must report to Congress on the use of prescription drugs to manage the weight of obese patients and the impact of such drugs on patient health and health care spending.
(Sec. 50353) The CMS shall report to Congress on long-term cost drivers to the Medicare program that may contribute to the deterioration of health conditions among Medicare beneficiaries with chronic conditions.
(Sec. 50354) The CMS must establish a process for Medicare PDP sponsors to request, beginning in plan year 2020, standardized extracts of claims data for Medicare hospital and medical services. PDP sponsors may use such data for specified purposes.
TITLE IV--PART B IMPROVEMENT ACT AND OTHER PART B ENHANCEMENTS
Subtitle A--Medicare Part B Improvement Act
(Sec. 50401) This subtitle temporarily provides for transitional Medicare payment with respect to certain home-infusion services furnished on or after January 1, 2019. Under current law, the CMS is required to establish a permanent payment system with respect to such services furnished on or after January 1, 2021.
(Sec. 50402) Documentation created by an orthotist or prosthetist shall be considered part of a Medicare beneficiary's medical record for purposes of determining the reasonableness and medical necessity of orthotics and prosthetics.
(Sec. 50403) The subtitle allows renal-dialysis facilities to be accredited by a CMS-approved accreditation body for participation in the Medicare program. The subtitle also establishes a time frame with respect to initial surveys of renal-dialysis facilities.
(Sec. 50404) The subtitle codifies certain CMS rules regarding signature requirements and holdover arrangements as they relate to prohibitions against physician self-referrals.
Subtitle B--Additional Medicare Provisions
(Sec. 50411) This subtitle makes permanent the elimination of a specified Medicare payment cap with respect to speech-generating devices.
(Sec. 50412) The subtitle increases civil and criminal penalties relating to false claims and other abuse under Medicare, Medicaid, and other federal health care programs.
(Sec. 50413) The subtitle repeals the requirement for the CMS to, over time, require more stringent measures for the meaningful use of electronic health records by providers.
(Sec. 50414) The subtitle modifies provisions relating to Medicare's competitive-acquisition program with respect to diabetic-testing strips.
TITLE V--OTHER HEALTH EXTENDERS
(Sec. 50501) This title extends funding for family-to-family health information centers.
(Sec. 50502) The title extends funding for, and otherwise revises provisions related to, sexual-risk avoidance education.
(Sec. 50503) The title extends funding for, and otherwise revises provisions related to, personal-responsibility education.
TITLE VI--CHILD AND FAMILY SERVICES AND SUPPORTS EXTENDERS
Subtitle A--Continuing the Maternal, Infant, and Early Childhood Home Visiting Program
(Sec. 50601) This subtitle reauthorizes through FY2022, and otherwise revises, the Maternal, Infant, and Early Childhood Home Visiting Program.
(Sec. 50602) Under current law, grantees were required, after three years of program implementation, to demonstrate improvement in specified benchmark areas. The subtitle requires grantees to continue to track and demonstrate, on a triennial basis, improvement in applicable benchmark areas. A grantee that fails to do so must develop and implement a corrective action plan, subject to approval by the Department of Health and Human Services (HHS). HHS shall terminate a program grant made to a grantee that implements such a plan but continues to fail to demonstrate improvement.
(Sec. 50603) As a condition for receiving grant funds under the program, a state must review and update its statewide needs assessment by October 1, 2020.
(Sec. 50605) A grantee may use a portion of program grant funds to support "pay-for-outcomes initiative" (a performance-based grant, contract, or cooperative agreement, awarded by a public entity, in which a commitment is made to pay for improved outcomes that result in social benefit and public-sector cost savings).
(Sec. 50606) HHS must designate data-exchange standards applicable to the program.
(Sec. 50607) To the extent that grant funds are allocated on the basis of relative population or poverty considerations, HHS shall use the most accurate federal data available.
Subtitle B--Extension of Health Professions Workforce Demonstration Projects
(Sec. 50611) This subtitle extends demonstration projects addressing health-professions workforce needs.
TITLE VII--FAMILY FIRST PREVENTION SERVICES ACT
Subtitle A--Investing in Prevention and Supporting Families
Bipartisan Budget Act of 2018
Part I--Prevention Activities under Title IV-E
(Sec. 50711) This subtitle revises provisions related to payments to states for certain foster-care prevention services and programs. HHS may reimburse a state for providing such services or programs to enable a child to remain safely at home or in a kinship placement instead of entering foster care.
(Sec. 50712) Under specified circumstances, a child shall be eligible for foster-care maintenance payments for a period of up to one year during which the child is placed with a parent who is in a licensed, residential, family-based treatment facility for substance abuse.
(Sec. 50713) States shall be entitled to specified federal reimbursement for the costs of operating kinship-navigator programs.
Part II--Enhanced Support under Title IV-B
(Sec. 50721) Current law restricts the provision of certain family-reunification services to a 15-month period that begins when a child enters foster care. The subtitle eliminates this restriction and otherwise revises provisions related to such services.
(Sec. 50722) The subtitle revises provisions related to the interstate placement of children.
(Sec. 50723) The subtitle reauthorizes through FY2021, and otherwise revises, targeted grants for improving permanency outcomes for children affected by substance abuse.
Part III--Miscellaneous
(Sec. 50731) HHS must identify model standards for the licensing of relative foster-family homes. By a specified date, each state shall report to HHS specified information related to whether the state's licensing standards are consistent with the model standards.
(Sec. 50732) The subtitle revises documentation requirements for states with respect to child-maltreatment deaths.
Part IV--Ensuring the Necessity of a Placement that Is Not in a Foster Family Home
(Sec. 50741) The subtitle limits federal reimbursement to states for placements that are not in foster-family homes.
(Sec. 50742) The subtitle establishes assessment, documentation, and judicial-determination requirements with respect to a child's placement in a qualified residential -treatment program.
(Sec. 50743) A state plan for child-welfare services must include an outline of procedures and protocols the state has established to ensure that children are not placed in foster-care placements other than foster-family homes due to inappropriate diagnoses.
(Sec. 50744) The subtitle revises state reporting requirements with respect to children in foster-care placements other than foster-family homes.
(Sec. 50745) In general, a state plan for foster-care and adoption assistance shall provide procedures for a child-care institution to conduct criminal-records checks of any adult working in the institution.
Part V--Continuing Support for Child and Family Services
(Sec. 50751) HHS shall make competitive grants to states to support the recruitment and retention of high-quality foster families.
(Sec. 50752) The subtitle reauthorizes through FY2021 specified child- and family-services programs.
(Sec. 50753) The subtitle revises provisions related to the John H. Chafee Foster Care Independence Program (renamed by the bill as the John H. Chafee Foster Care Program for Successful Transition to Adulthood).
Part VI--Continuing Incentives to States to Promote Adoption and Legal Guardianship
(Sec. 50761) The subtitle reauthorizes through FY2020 certain adoption and legal-guardianship incentive-payment programs for states.
Part VII--Technical Corrections
(Sec. 50771) The subtitle revises provisions regarding data exchange standards with respect to child-welfare services.
(Sec