1.
(a)This Act may be cited
as the Middle Class Tax Relief Act of
2010
.
(b)Except as otherwise expressly provided, whenever in
this Act 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.
(c)The table of contents for this Act is as follows:
Sec. 1. Short title; etc.
Title I—Middle class tax relief made permanent
Sec. 101. Middle class tax relief made permanent.
Sec. 102. Certain provisions not applicable to high income
individuals.
Sec. 103. Related amendments.
Title II—Expensing by small businesses of certain depreciable
assets
Sec. 201. Increased limitations on expensing by small
businesses of certain depreciable assets.
Title III—Extension of alternative minimum tax relief
Sec. 301. Extension of alternative minimum tax relief for
nonrefundable personal credits.
Sec. 302. Extension of increased alternative minimum tax
exemption amount.
Title IV—Budgetary provision
Sec. 401. PAYGO compliance.
<enum>I</enum><header>Middle class tax
relief made permanent</header>
<section id="H5569027205AB4F9894E2788B075A1DCC"><enum>101.</enum><header>Middle class
tax relief made permanent</header>
<subsection id="H430DC31E07284DB6B2D8638A78DB476F"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 901 of the
Economic Growth and Tax Relief Reconciliation Act of 2001 shall not apply to
the following provisions of such Act (and to the amendments made by such
provisions):</text>
<paragraph id="H33562E9B5F79422AA60F39DDD828E8CC"><enum>(1)</enum><text>Title I (relating
to individual income tax rate reductions).</text>
</paragraph><paragraph id="HDE4872DEEF8848C595F445338318ADF5"><enum>(2)</enum><text>Title II (relating
to tax benefits related to children).</text>
</paragraph><paragraph id="H324040558C0A4A7B975E43FB56FD26E6"><enum>(3)</enum><text>Title III
(relating to marriage penalty relief).</text>
</paragraph><paragraph id="H635F669FDC4C482297D4E090504A3B5B"><enum>(4)</enum><text>Title IV (relating
to affordable education provisions).</text>
</paragraph></subsection><subsection id="H23327F22D42C4BC0B13895512A920082"><enum>(b)</enum><header>Reduced rates on
capital gains and dividends</header><text>The Jobs and Growth Tax Relief
Reconciliation Act of 2003 is amended by striking section 303.</text>
</subsection></section><section id="H2263E80BDB864FDEAD2D338C0477F15F"><enum>102.</enum><header>Certain
provisions not applicable to high income individuals</header>
<subsection id="H889E7916AD4649C5956294A7B3E3EA04"><enum>(a)</enum><header>Individual
income tax rates</header><text display-inline="yes-display-inline">Subsection
(i) of section 1 is amended by striking paragraph (2), by redesignating
paragraph (3) as paragraph (4), and by inserting after paragraph (1) the
following new paragraphs:</text>
<quoted-block display-inline="no-display-inline" id="H0F0D2A14FB084AEE858E8CB90816A6DE" style="OLC">
<paragraph id="H2E80ACD0BCFF4C13ABC56CF1F4E731BD"><enum>(2)</enum><header><enum-in-header>25</enum-in-header>-
and <enum-in-header>28-P</enum-in-header>ercent rate brackets</header><text display-inline="yes-display-inline">The tables under subsections (a), (b), (c),
(d), and (e) shall be applied—</text>
<subparagraph id="HAE70A68A135B4D779114499E32A0B07B"><enum>(A)</enum><text>by substituting
<quote>25%</quote> for <quote>28%</quote> each place it appears (before the
application of subparagraph (B)), and</text>
</subparagraph><subparagraph id="H0EF391EEFB86424C90988DDAA807E3BE"><enum>(B)</enum><text>by substituting
<quote>28%</quote> for <quote>31%</quote> each place it appears.</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H8A959021715F411E84D167DEB91149E9"><enum>(3)</enum><header>33-<enum-in-header>P</enum-in-header>ercent
rate bracket</header>
<subparagraph display-inline="no-display-inline" id="HD1BDF35288F34DAFB2166BC566487C36"><enum>(A)</enum><header>In
general</header><text>In the case of taxable years beginning after December 31,
2010—</text>
<clause id="H6A754BBC17ED487BA16572BB44B42601"><enum>(i)</enum><text display-inline="yes-display-inline">the rate of tax under subsections (a), (b),
(c), and (d) on a taxpayer's taxable income in the fourth rate bracket shall be
33 percent to the extent such income does not exceed an amount equal to the
excess of—</text>
<subclause id="H0326FDF06D774C6795A3479F6BB81F5D"><enum>(I)</enum><text display-inline="yes-display-inline">the applicable amount, over</text>
</subclause><subclause id="H21663DBABEA342EFB2B3CCEC8545E00F"><enum>(II)</enum><text display-inline="yes-display-inline">the dollar amount at which such bracket
begins, and</text>
</subclause></clause><clause id="HC186AE6AC6E64B7DA3BF06F03A65739C"><enum>(ii)</enum><text>the 36 percent
rate of tax under such subsections shall apply only to the taxpayer's taxable
income in such bracket in excess of the amount to which clause (i)
applies.</text>
</clause></subparagraph><subparagraph display-inline="no-display-inline" id="H35DF2E96EDC847CA9D3A13D965DF8D75"><enum>(B)</enum><header>Applicable
amount</header><text>For purposes of this paragraph, the term <quote>applicable
amount</quote> means the excess of—</text>
<clause id="HD4622476F4154115B720424AE717D09C"><enum>(i)</enum><text>the applicable
threshold, over</text>
</clause><clause id="HC42F9066A66A43F89EE5C78580CA0C3C"><enum>(ii)</enum><text>the sum of the
following amounts in effect for the taxable year:</text>
<subclause id="H9166B01FA4E94B45896D1CEBAA8903FA"><enum>(I)</enum><text>the basic standard
deduction (within the meaning of section 63(c)(2)), and</text>
</subclause><subclause id="HBEB115EED8CE48498D2524C9D7EADC4B"><enum>(II)</enum><text>the exemption
amount (within the meaning of section 151(d)(1)) (or, in the case of subsection
(a), 2 such exemption amounts).</text>
</subclause></clause></subparagraph><subparagraph id="H6445F7C95D8844B8AC86450B65AB5E0A"><enum>(C)</enum><header>Applicable
threshold</header><text>For purposes of this paragraph, the term
<quote>applicable threshold</quote> means—</text>
<clause id="H3E393FA3086A4EA0BBFE7EB8684FAB44"><enum>(i)</enum><text>$250,000 in the
case of subsection (a),</text>
</clause><clause id="H1F71467B93CA48AFAE0AC4CBE51C87D4"><enum>(ii)</enum><text>$200,000 in the
case of subsections (b) and (c), and</text>
</clause><clause id="HE803DC666FD944FB88BFA48EA3F2F6E1"><enum>(iii)</enum><text><fraction>1/2</fraction>
the amount applicable under clause (i) (after adjustment, if any, under
subparagraph (E)) in the case of subsection (d).</text>
</clause></subparagraph><subparagraph id="HF96CDB7705934217B63B3D1C1DDB5241"><enum>(D)</enum><header>Fourth rate
bracket</header><text>For purposes of this paragraph, the term <quote>fourth
rate bracket</quote> means the bracket which would (determined without regard
to this paragraph) be the 36-percent rate bracket.</text>
</subparagraph><subparagraph id="HA606BB9B16E245A18E7B28658564C887"><enum>(E)</enum><header>Inflation
adjustment</header><text>For purposes of this paragraph, a rule similar to the
rule of paragraph (1)(C) shall apply with respect to taxable years beginning in
calendar years after 2010, applied by substituting <quote>2008</quote> for
<quote>1992</quote> in subsection
(f)(3)(B).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HF766FF99214F44599B516B1448EAF829"><enum>(b)</enum><header>Phaseout of
personal exemptions and itemized deductions</header>
<paragraph display-inline="no-display-inline" id="H7277B394B6584831AC16258847BB04E2"><enum>(1)</enum><header>Overall
limitation on itemized deductions</header><text display-inline="yes-display-inline">Section 68 is amended—</text>
<subparagraph id="HDF63C5CD869A45CFA0BEB3FE4D3B2FAF"><enum>(A)</enum><text>by striking
<quote>the applicable amount</quote> the first place it appears in subsection
(a) and inserting <quote>the applicable threshold in effect under section
1(i)(3)</quote>,</text>
</subparagraph><subparagraph id="HEEE67A40793E4CD184C362965D870C63"><enum>(B)</enum><text>by striking
<quote>the applicable amount</quote> in subsection (a)(1) and inserting
<quote>such applicable threshold</quote>,</text>
</subparagraph><subparagraph id="H7CBF1DF0A34146EABCB7F28770899F6A"><enum>(C)</enum><text>by striking
subsection (b) and redesignating subsections (c), (d), and (e) as subsections
(b), (c), and (d), respectively, and</text>
</subparagraph><subparagraph id="HA3E1C08F09DF455F8B036C5B30B69987"><enum>(D)</enum><text>by striking
subsections (f) and (g).</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HCF9B12BA1E1E4FEC829FF82486720748"><enum>(2)</enum><header>Phaseout of
deductions for personal exemptions</header>
<subparagraph id="H3EF733E1D2594EA998C5D8CD270B42E0"><enum>(A)</enum><header>In
general</header><text>Paragraph (3) of section 151(d) is amended—</text>
<clause id="HEA7A773E0B4248ADA9231AE17A24EA1E"><enum>(i)</enum><text>by
striking <quote>the threshold amount</quote> in subparagraphs (A) and (B) and
inserting <quote>the applicable threshold in effect under section
1(i)(3)</quote>,</text>
</clause><clause id="HD24949CAAF044ADB948B7947858D52AD"><enum>(ii)</enum><text>by
striking subparagraph (C) and redesignating subparagraph (D) as subparagraph
(C), and</text>
</clause><clause id="H990286EE5BCC4975830CE68BA33537B5"><enum>(iii)</enum><text>by
striking subparagraphs (E) and (F).</text>
</clause></subparagraph><subparagraph id="H262A7D5ABECF49E691F305CA8C9CAB9A"><enum>(B)</enum><header>Conforming
amendment</header><text>Paragraph (4) of section 151(d) is amended—</text>
<clause id="H9FD78C2044E1490399091F598FF45C6A"><enum>(i)</enum><text>by
striking subparagraph (B),</text>
</clause><clause id="HE92A2B1A4B3246829B5138CCD485808A"><enum>(ii)</enum><text>by
redesignating clauses (i) and (ii) of subparagraph (A) as subparagraphs (A) and
(B), respectively, and by indenting such subparagraphs (as so redesignated)
accordingly, and</text>
</clause><clause id="HE03D2AE18E8E412B938E9DD72E22766A"><enum>(iii)</enum><text>by
striking all that precedes <quote>in a calendar year after 1989,</quote> and
inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H50F1EF6624D94C58935834D71B7FF67C" style="OLC">
<paragraph id="H0E91F613E1B4475D814F038DCE97D00B"><enum>(4)</enum><header>Inflation
adjustment</header><text display-inline="yes-display-inline">In the case of any
taxable year
beginning</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</clause></subparagraph></paragraph></subsection><subsection id="H941DF8F59B9E4550B44D381169FC117C"><enum>(c)</enum><header>Reduced rate on
capital gains and dividends</header>
<paragraph id="H3E323A5842A74B58B6444A664F5E24E8"><enum>(1)</enum><header>In
general</header><text>Paragraph (1) of section (1)(h) is amended by striking
subparagraph (C), by redesignating subparagraphs (D) and (E) as subparagraphs
(E) and (F) and by inserting after subparagraph (B) the following new
subparagraphs:</text>
<quoted-block display-inline="no-display-inline" id="H1B5140A3057849AFB70EFF65858A6D04" style="OLC">
<subparagraph id="H6B1A5BA042724AC2860FA01045A7E164"><enum>(C)</enum><text display-inline="yes-display-inline">15 percent of the lesser of—</text>
<clause id="H1D9974C7475441338576C78234471FC8"><enum>(i)</enum><text>so
much of the adjusted net capital gain (or, if less, taxable income) as exceeds
the amount on which a tax is determined under subparagraph (B), or</text>
</clause><clause id="H71BFE9F891014EC9B11E37A239384583"><enum>(ii)</enum><text>the excess (if
any) of—</text>
<subclause id="H2F9BDEA2E6854D14961B8A8A44FDBBF9"><enum>(I)</enum><text>the amount of
taxable income which would (without regard to this subsection) be taxed at a
rate below 36 percent, over</text>
</subclause><subclause id="H2D2A732C5BED4C05B4EE59EF645C54DD"><enum>(II)</enum><text>the sum of the
amounts on which tax is determined under subparagraphs (A) and (B),</text>
</subclause></clause></subparagraph><subparagraph id="HB19A9D00962145B3A640D7434B334E1E"><enum>(D)</enum><text display-inline="yes-display-inline">20 percent of the adjusted net capital gain
(or, if less, taxable income) in excess of the sum of the amounts on which tax
is determined under subparagraphs (B) and
(C),</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HEE76B36AC60347F0A53C77CF6B08DD04"><enum>(2)</enum><header>Dividends</header><text>Subparagraph
(A) of section 1(h)(11) is amended by striking <quote>qualified dividend
income</quote> and inserting</text>
<quoted-block display-inline="yes-display-inline" id="H609DE84F815744C78EDF9376999E6883" style="OLC">
<text>so much of the
qualified dividend income as does not exceed the excess (if any)
of—</text><clause commented="no" id="HA88F45135B2841BEA30F7CDF7ED51CE1"><enum>(i)</enum><text>the amount of
taxable income which would (without regard to this subsection) be taxed at a
rate below 36 percent, over</text>
</clause><clause commented="no" id="H3D473CA8137044E997B4717ECD576B35"><enum>(ii)</enum><text display-inline="yes-display-inline">taxable income reduced by qualified
dividend
income.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="H5560513615D24B5A80F8E34221251FDA"><enum>(3)</enum><header>Minimum
tax</header><text display-inline="yes-display-inline">Section 55 is amended by
adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HDCC223A90AF349EE92056ED2381D86E2" style="OLC">
<subsection id="HA9E1C761A61E417987D230CA4494478B"><enum>(f)</enum><header>Application of
maximum rate of tax on net capital gain of noncorporate taxpayers</header><text display-inline="yes-display-inline">In the case of taxable years beginning
after December 31, 2010, the amount determined under subparagraph (C) of
subsection (b)(3) shall be the sum of—</text>
<paragraph commented="no" id="H24715B686E884C0E870E3F4C76BA03C0"><enum>(1)</enum><text display-inline="yes-display-inline">15 percent of the lesser of—</text>
<subparagraph commented="no" id="H01A3493142CD4CEAAACD1C91EA2CE4E4"><enum>(A)</enum><text>so much of the
adjusted net capital gain (or, if less, taxable excess) as exceeds the amount
on which tax is determined under subparagraph (B) of subsection (b)(3),
or</text>
</subparagraph><subparagraph commented="no" id="H87F7E44407AB462EA8E3CFD80EDACF37"><enum>(B)</enum><text>the excess
described in section 1(h)(1)(C)(ii), plus</text>
</subparagraph></paragraph><paragraph commented="no" id="HB49FA76F55DA46A096A52247E963B453"><enum>(2)</enum><text display-inline="yes-display-inline">20 percent of the adjusted net capital gain
(or, if less, taxable excess) in excess of the sum of the amounts on which tax
is determined under subsection (b)(3)(B) and paragraph
(1).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph display-inline="no-display-inline" id="H1709BBA5730F42AB8D34C641C428A2D5"><enum>(4)</enum><header>Conforming
amendments</header>
<subparagraph commented="no" id="H8CF17EF6A01746218693B7B371EA5D62"><enum>(A)</enum><text>The following
provisions are amended by striking <quote>15 percent</quote> and inserting
<quote>20 percent</quote>:</text>
<clause commented="no" id="HBE025BAD2E3D40B4AE980C528C7E0A85"><enum>(i)</enum><text>Section
1445(e)(1).</text>
</clause><clause commented="no" id="HC14302597C1A465BB1D7F82152FFBCC9"><enum>(ii)</enum><text>The second
sentence of section 7518(g)(6)(A).</text>
</clause><clause commented="no" id="HAA07B37F27634CAC9279E903F062722C"><enum>(iii)</enum><text>Section
53511(f)(2) of title 46, United States Code.</text>
</clause></subparagraph><subparagraph id="H42A5E42C84384E27AB5E9F7C4261BE0E"><enum>(B)</enum><text>Sections 531 and
541 are each amended by striking <quote>15 percent of</quote> and inserting
<quote>the product of the highest rate of tax under section 1(c)
and</quote>.</text>
</subparagraph><subparagraph id="HDD708083BD50478999AC8799A25DE5D1"><enum>(C)</enum><text display-inline="yes-display-inline">Section 1445(e)(6) is amended by striking
<quote>15 percent (20 percent in the case of taxable years beginning after
December 31, 2010)</quote> and inserting <quote>20 percent</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="H8B554A18B81543B3888C5B9DABB9176A"><enum>(d)</enum><header>Effective
dates</header>
<paragraph id="H2A741F4146204141B63162C5C27F9F4B"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the amendments made
by this section shall apply to taxable years beginning after December 31,
2010.</text>
</paragraph><paragraph id="H1134042381EE4EBFBB68607F53F637CE"><enum>(2)</enum><header>Withholding</header><text>The
amendments made by subparagraphs (A)(i) and (C) of subsection (c)(4) shall
apply to amounts paid on or after January 1, 2011.</text>
</paragraph></subsection></section><section id="H385866B737774458822D6EC7BA82C740"><enum>103.</enum><header>Related
amendments</header>
<subsection id="H5E11AC95B798440D829E5FE3CF31E605"><enum>(a)</enum><header>Application of
increase in refundable portion of child tax credit</header>
<paragraph id="H7C4538F1486545209790A7DE98EC9EE4"><enum>(1)</enum><header>In
general</header><text>Subsection (d) of section 24 is amended—</text>
<subparagraph id="HDB739016D45B4C02B545A622AD961148"><enum>(A)</enum><text>by striking
<quote>$10,000</quote> in paragraph (1)(B)(i) and inserting
<quote>$3,000</quote>, and</text>
</subparagraph><subparagraph id="H129C7F0DABA846749E84283A8A549E70"><enum>(B)</enum><text>by striking
paragraphs (3) and (4).</text>
</subparagraph></paragraph><paragraph id="HD6F2CDC29AE044A9BA7137C0FBF1E52C"><enum>(2)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this subsection shall apply to taxable years beginning after December 31,
2010.</text>
</paragraph></subsection><subsection id="H0B91AC915F8F4A3095179E6C846F6493"><enum>(b)</enum><header>Application of
increase in earned income tax credit</header>
<paragraph id="H9299C45FFDEC48A088D0F4BE92713CDB"><enum>(1)</enum><header>In
general</header><text>Subparagraph (B) of section 32(b)(2) is amended to read
as follows:</text>
<quoted-block display-inline="no-display-inline" id="HE46B8F2B940D45968E0E224DC8F0BEC8" style="OLC">
<subparagraph id="H164EB8B5CDB34C0A892F0B5C3A54AC29"><enum>(B)</enum><header>Joint
returns</header>
<clause id="H2ED62BB3B62746FD9333F89A343AF87B"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">In the case of a
joint return filed by an eligible individual and such individual’s spouse, the
phaseout amount determined under subparagraph (A) shall be increased by
$5,000.</text>
</clause><clause id="H74665BFCD9094943803A134B5FEC1E39"><enum>(ii)</enum><header>Inflation
adjustment</header><text>In the case of any taxable year beginning after 2010,
the $5,000 amount in clause (i) shall be increased by an amount equal
to—</text>
<subclause id="H38A307EFC55042CEB659A5AA3A975D72"><enum>(I)</enum><text>such dollar
amount, multiplied by</text>
</subclause><subclause id="H08AB4A11E66B4B5FBDAE4101D1C21A58"><enum>(II)</enum><text>the cost of
living adjustment determined under section 1(f)(3) for the calendar year in
which the taxable year begins determined by substituting <quote>calendar year
2008</quote> for <quote>calendar year 1992</quote> in subparagraph (B)
thereof.</text>
</subclause><continuation-text continuation-text-level="clause">Subparagraph
(A) of subsection (j)(2) shall apply after taking into account any increase
under the preceding
sentence.</continuation-text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HA5E17F1F4CC34B119F03173B1FB79A31"><enum>(2)</enum><header>Conforming
amendment</header><text>Subsection (b) of section 32 is amended by striking
paragraph (3).</text>
</paragraph><paragraph id="H0892AA7FE7B4427EB1A62D49CDC6D81F"><enum>(3)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this subsection shall apply to taxable years beginning after December 31,
2010.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H1F669B1074794D278B42FF9DBD072361"><enum>(c)</enum><header>Application to
adoption credit and adoption assistance programs</header><text display-inline="yes-display-inline">Subsection (c) of section 10909 of the
Patient Protection and Affordable Care Act is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H771FFAE75F294BB89243B702953C4875" style="OLC">
<subsection id="HC5AFDC00BE0042C9A6C0F72286FB836B"><enum>(c)</enum><text display-inline="yes-display-inline">The amendments made by this section shall
not apply to taxable years beginning after December 31,
2011.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><enum>II</enum><header>Expensing by
small businesses of certain depreciable assets</header>
<section id="HDED2860B074349F2AB6B60ADCF0241B5"><enum>201.</enum><header>Increased
limitations on expensing by small businesses of certain depreciable
assets</header>
<subsection id="HAF3A08995F23439DB0C61A19AC6BD735"><enum>(a)</enum><header>Dollar
limitation</header><text display-inline="yes-display-inline">Subparagraph (C)
of section 179(b)(1) is amended by striking <quote>$25,000</quote> and
inserting <quote>$125,000</quote>.</text>
</subsection><subsection id="HD529E845516141E1A857B266CA0C4F5A"><enum>(b)</enum><header>Threshold at
which phaseout begins</header><text>Subparagraph (C) of section 179(b)(2) is
amended by striking <quote>$200,000</quote> and inserting
<quote>$500,000</quote>.</text>
</subsection><subsection id="H0EAA190381304809ACAE962CDFF3589A"><enum>(c)</enum><header>Inflation
adjustment</header><text>Subsection (b) of section 179 is amended by adding at
the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HDB890AB54E3344DCA08D5F30D01E21EE" style="OLC">
<paragraph id="H08A13CB9A6504FD78E95F8544207EF98"><enum>(6)</enum><header>Inflation
adjustments</header>
<subparagraph id="H183D533909494F9FB2FF9E602F60C6F2"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">In the case of any
taxable beginning in a calendar year after 2011, the $125,000 and $500,000
amounts in paragraphs (1)(C) and (2)(C) shall each be increased by an amount
equal to—</text>
<clause id="HC5BB8F02AE1F4216B18FD4D264DC9CCA"><enum>(i)</enum><text>such dollar
amount, multiplied by</text>
</clause><clause id="H7525880CAB7E471586D4101E1F687001"><enum>(ii)</enum><text>the
cost-of-living adjustment determined under section 1(f)(3) for the calendar
year in which the taxable year begins determined by substituting
<quote>calendar year 2006</quote> for <quote>calendar year 1992</quote> in
subparagraph (B) thereof.</text>
</clause></subparagraph><subparagraph id="H2A81AB63CB874850893177E16C67503C"><enum>(B)</enum><header>Rounding</header>
<clause id="HBAE5DBE7E72C495D84D7A47BC8407B93"><enum>(i)</enum><header>Dollar
limitation</header><text display-inline="yes-display-inline">If the amount in
paragraph (1) as increased under subparagraph (A) is not a multiple of $1,000,
such amount shall be rounded to the nearest multiple of $1,000.</text>
</clause><clause id="H2B8AA033CD39401BA1B76BA076C15F80"><enum>(ii)</enum><header>Phaseout
amount</header><text>If the amount in paragraph (2) as increased under
subparagraph (A) is not a multiple of $10,000, such amount shall be rounded to
the nearest multiple of
$10,000.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H5712F842B2E041A5BB371C50089C6B35"><enum>(d)</enum><header>Authority To
revoke election made permanent</header><text display-inline="yes-display-inline">Paragraph (2) of section 179(c) is amended
by striking <quote>and before 2012</quote>.</text>
</subsection><subsection id="H079AFDC7C4304E8C96725390772CB124"><enum>(e)</enum><header>Treatment of
certain computer software as section 179 property made
permanent</header><text>Clause (ii) of section 179(d)(1)(A) is amended by
striking <quote>and before 2012</quote>.</text>
</subsection><subsection id="H6E69E8A53198481293E8A02AAED24EA0"><enum>(f)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2011.</text>
</subsection></section><enum>III</enum><header>Extension of
alternative minimum tax relief</header>
<section id="HA749BC11549442B5B315041E639AE67D"><enum>301.</enum><header>Extension of
alternative minimum tax relief for nonrefundable personal credits</header>
<subsection id="H3AA98DD128FA4B6D904232415E9F180C"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (2) of
section 26(a) is amended—</text>
<paragraph id="H073E8C98C3484FF9861E525B71425EA1"><enum>(1)</enum><text>by striking
<quote>2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, or 2009</quote>
and inserting <quote>the period beginning with calendar year 2000 and ending
with calendar year 2011</quote>, and</text>
</paragraph><paragraph id="HF0E7E55ACBDF49E0AE3DE33F50D8F6B3"><enum>(2)</enum><text>by striking
<quote><header-in-text level="paragraph" style="OLC">2009</header-in-text></quote> in the heading thereof and inserting
<quote><header-in-text level="paragraph" style="OLC">2011</header-in-text></quote>.</text>
</paragraph></subsection><subsection id="H40C0B5D74EFB462DBA94110028CBDA90"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2009.</text>
</subsection></section><section id="H3BCD8E52F3BA48EDA80A1514ED761878"><enum>302.</enum><header>Extension of
increased alternative minimum tax exemption amount</header>
<subsection id="H7A3C42D7867649199AF28E935BCE1EAC"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (1) of
section 55(d) is amended—</text>
<paragraph id="HC71AE2A9BDF84875930399AF88435E9F"><enum>(1)</enum><text>by striking
<quote>($70,950 in the case of taxable years beginning in 2009)</quote> in
subparagraph (A) and inserting <quote>($72,450 in the case of taxable years
beginning in 2010 or 2011)</quote>, and</text>
</paragraph><paragraph id="HF329A669EB754B47B7977B317FF86319"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>($46,700 in the case of
taxable years beginning in 2009)</quote> in subparagraph (B) and inserting
<quote>($47,450 in the case of taxable years beginning in 2010 or
2011)</quote>.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H078E070CBBCE4DFB839AF6EEF3C78E94"><enum>(b)</enum><header>Nonapplication
of EGTRRA sunset</header><text>Section 901 of the Economic Growth and Tax
Relief Reconciliation Act of 2001 shall not apply to the amendments made by
section 701 of such Act.</text>
</subsection><subsection id="HBE6E46FAA0534903BF4586055B41F233"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2009.</text>
</subsection></section><enum>IV</enum><header>Budgetary
provision</header>
<section display-inline="no-display-inline" id="HA9B88D429061460A863462856D117F98" section-type="subsequent-section"><enum>401.</enum><header>PAYGO
compliance</header><text display-inline="no-display-inline">The budgetary
effects of this Act, for the purpose of complying with the Statutory
Pay-As-You-Go Act of 2010, shall be determined by reference to the latest
statement titled <quote>Budgetary Effects of PAYGO Legislation</quote> for this
Act, submitted for printing in the Congressional Record by the Chairman of the
House Budget Committee, provided that such statement has been submitted prior
to the vote on passage.</text>
</section>