123STA T . 31 4PUBLIC LA W 111 –5—FE B.1 7, 2 0 0 9Anyref eren c e i n th i s secti o n or section 24, 2 5 ,2 6 ,25 B , 90 4, or 1 400 C to a cre d ita l lo w a b le u nder this subsection shall be treated as a reference to so m uch of the credit allowable under subsection ( a ) as is attributable to the H o p e S cholarship Credit .‘ ‘(6) PORTI O N O FC R ED IT MA DE REF U NDA BL E. — 40 percent of so much of the credit allowed under subsection (a) as is attributable to the Hope Scholarship Credit (determined after application of para g raph (4) and without regard to this para - graph and section 26(a)(2) or paragraph (5), as the case may be) shall be treated as a credit allowable under subpart C (and not allowed under subsection (a)). T he preceding sentence shall not apply to any ta x payer for any taxable year if such taxpayer is a child to whom subsection (g) of section 1 applies for such taxable year. ‘‘( 7 ) COORDINATION W IT H MIDWE S TERN DISASTER AREA BENE- FITS.— I n the case of a taxpayer with respect to whom section 702(a)(1)(B) of the Heartland D isaster Tax R elief Act of 200 8 applies for any taxable year, such taxpayer may elect to wai v e the application of this subsection to such taxpayer for such taxable year. ’ ’. (b) CONFORMIN G AMENDMENTS.— (1) Section 24(b)( 3 )(B) is amended by inserting ‘‘25A(i),’’ after ‘‘23,’’. (2) Section 25(e)(1)(C)(ii) is amended by inserting ‘‘25A(i),’’ after ‘‘24,’’. (3) Section 26(a)(1) is amended by inserting ‘‘25A(i),’’ after ‘‘24,’’. (4) Section 25B(g)(2) is amended by inserting ‘‘25A(i),’’ after ‘‘23,’’. (5) Section 904(i) is amended by inserting ‘‘25A(i),’’ after ‘‘24,’’. (6) Section 1400C(d)(2) is amended by inserting ‘‘25A(i),’’ after ‘‘24,’’. (7) Section 6211(b)(4)(A) is amended by inserting ‘‘25A by reason of subsection (i)(6) thereof,’’ after ‘‘24(d),’’. (8) Section 1324(b)(2) of title 31, U nited States Code, is amended by inserting ‘‘25A,’’ before ‘‘35’’. (c) TREATMENT OF POSSESSIONS.— (1) PA Y MENTS TO P OSSESSIONS.— (A) M IRROR CODE POSSESSION.—The Secretary of the Treasury shall pay to each possession of the United States with a mirror code tax system amounts e q ual to the loss to that possession by reason of the application of section 25A(i)(6) of the Internal Revenue Code of 1986 (as added by this section) with respect to taxable years beginning in 2009 and 2010. Such amounts shall be determined by the Secretary of the Treasury based on information pro- vided by the government of the respective possession. (B) O THER 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 that would have been provided to residents of such possession by reason of the application of section 25A(i)(6) of such Code (as so added) for taxable years beginning in 2009 and 2010 if a mirror code tax Ef f ectiv e da te s. Effective dates. 26USC 2 5Ano te. 26USC2 4 .
