I found this on http://www.immigration-law.com :
Updated 04/24/01: False Hope of Travelling in H-1B "Visa" Beyond 6-Year Limit
AC 21 allows for the extension of H-1B stay beyond the 6-year limit in one-year increments in certain circumstances (so-called 365+ rule). The details on interpretation of this legislation has to be released by the INS in the form of a regulation. However, the U.S. Department of State made it clear that the law would apply only to the extension of "status" and not to the extension of "petition." In other words, it interpretes that AC 21 only allows the H-1B aliens to "stay" in the H-1B status in the United States beyond 6-year limit, but does not allow the agencies to extend the H-1B petition. Consequently, American consulates will not issue a renewed H-1B visa beyond the 6-year limit!
This policy and interpretation of the DOS are critically important for those who plan to travel abroad. For those who have filed I-485 and reached the H-1B 6-year limit, it is critically important to remember that they should obtain Advance Parole and travel on AP as the American Consulates will not isssue extended H-1B visa beyond the 6-year limit, no matter how the INS implements this part of AC 21 (there is a question of whether or not an extension petition is required.). For those who are still at I-140 stage and whose 6-year limit has reached, since they cannot apply for Advanced Parole nor can they obtain a renewed H-1B visa at the American Consulates beyond the 6-year limit, their travel outside the U.S. in all practical purposes are shut out, at least until they reach the stage of filing EB-485 when they will be able to obtain AP.
In this regard, the importance of this part of AC 21 legislation is very much limited for EB-485 filers, since they can work and stay in the U.S. without H-1B visa status but with Advance Parole and EAD. This legal provision is still important for those I-140 filers who would not otherwise be able to remain and work in the U.S. while they wait for the priority dates and filing of I-485.
Updated 04/24/01: False Hope of Travelling in H-1B "Visa" Beyond 6-Year Limit
AC 21 allows for the extension of H-1B stay beyond the 6-year limit in one-year increments in certain circumstances (so-called 365+ rule). The details on interpretation of this legislation has to be released by the INS in the form of a regulation. However, the U.S. Department of State made it clear that the law would apply only to the extension of "status" and not to the extension of "petition." In other words, it interpretes that AC 21 only allows the H-1B aliens to "stay" in the H-1B status in the United States beyond 6-year limit, but does not allow the agencies to extend the H-1B petition. Consequently, American consulates will not issue a renewed H-1B visa beyond the 6-year limit!
This policy and interpretation of the DOS are critically important for those who plan to travel abroad. For those who have filed I-485 and reached the H-1B 6-year limit, it is critically important to remember that they should obtain Advance Parole and travel on AP as the American Consulates will not isssue extended H-1B visa beyond the 6-year limit, no matter how the INS implements this part of AC 21 (there is a question of whether or not an extension petition is required.). For those who are still at I-140 stage and whose 6-year limit has reached, since they cannot apply for Advanced Parole nor can they obtain a renewed H-1B visa at the American Consulates beyond the 6-year limit, their travel outside the U.S. in all practical purposes are shut out, at least until they reach the stage of filing EB-485 when they will be able to obtain AP.
In this regard, the importance of this part of AC 21 legislation is very much limited for EB-485 filers, since they can work and stay in the U.S. without H-1B visa status but with Advance Parole and EAD. This legal provision is still important for those I-140 filers who would not otherwise be able to remain and work in the U.S. while they wait for the priority dates and filing of I-485.