I 112th CONGRESS 2d Session H. R. 6474 IN THE HOUSE OF REPRESENTATIVES September 20, 2012 Mr. Ross of Florida introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Oversight and Government Reform, House Administration, Rules, and the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To adopt the seven immediate reforms recommended by the National Commission on Fiscal Responsibility and Reform to reduce spending and make the Federal Government more efficient.
1.
Short title; table of contents
(a)
In general
This Act may be cited as the Implementation of Simpson-Bowles Spending Reductions Act of 2012. (b)
Table of contents
The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Title I—Reduced expenditures Sec. 101. Reduction in appropriations to the White House and Congress. Sec. 102. No cost of living adjustment in pay of Members of Congress. Sec. 103. Pay freeze for Federal employees. Sec. 104. Reduction in Federal workforce. Sec. 105. Reduction in Government travel costs. Sec. 106. Limitation on Government printing costs. Sec. 107. Reduction in Federal vehicle costs. Sec. 108. Sale of excess Federal property. Sec. 109. Prohibition on earmarks. Title II—Tax Reform Subtitle A—Tax rates Sec. 201. Individual rates. Sec. 202. Repeal of alternative minimum tax on individuals. Sec. 203. Permanent repeal of personal exemption phaseout. Sec. 204. Permanent repeal of phaseout of overall limitation on itemized deductions. Sec. 205. Corporate income tax rate reduced to flat rate of 20 percent. Sec. 206. Renewed temporary dividends received deduction. Subtitle B—Elimination of tax expenditures Sec. 211. Termination of credit for increasing research activities. Sec. 212. Termination of deduction for intangible drilling and development costs. Sec. 213. Repeal of domestic production activities deduction with respect to production of coal, lignite, or oil shale. Sec. 214. Repeal percentage depletion for oil and natural gas wells. Sec. 215. Termination of credit for electricity produced from certain renewable resources. Sec. 216. Termination of energy credit. Sec. 217. Repeal of credit for alcohol used as fuel. Sec. 218. Repeal of credit for alcohol fuel, biodiesel, and alternative fuel mixtures. Sec. 219. Repeal of credit for biodiesel and renewable diesel used as fuel. Sec. 220. Repeal of credit for certain plug-in electric vehicles. Sec. 221. Early termination of credit for qualified fuel cell motor vehicles. Sec. 222. Repeal of deduction for energy conservation subsidies provided by public utilities. Sec. 223. Repeal of qualifying advanced coal project credit. Sec. 224. Repeal of qualifying gasification project credit. Sec. 225. Repeal of special allowance for cellulosic biofuel plant property. Sec. 226. Repeal of election to expense certain refineries. Sec. 227. Repeal of 2-year amortization of geological and geophysical expenditures. Sec. 228. Repeal of deduction for energy efficient commercial building property. Sec. 229. Repeal of credit for construction of new energy efficient homes. Sec. 230. Repeal of credit for energy efficient appliances. Sec. 231. Repeal of credit for residential energy efficient property. Sec. 232. Repeal of advanced energy project credit. Sec. 233. Repeal of credit for carbon dioxide sequestration. Sec. 234. Repeal of low-income housing credit. Sec. 235. Repeal of Hope and Lifetime Learning Credits. Sec. 236. Repeal of work opportunity tax credit. Sec. 237. Repeal of credit for expenses for household and dependent care services necessary for gainful employment. Sec. 238. Repeal of credit for adoption expenses. Sec. 239. Repeal of credit for expenditures to provide access to disabled individuals. Sec. 240. Repeal of earned income tax credit. Sec. 241. Repeal of energy conservation subsidies provided by public utilities. Sec. 242. Repeal of election to expense certain refinery property. Sec. 243. Repeal of deduction for endangered species recovery expenditures. Sec. 244. Repeal of exclusion of cancellation of indebtedness income of solvent farmers. Sec. 245. Repeal of alternative minimum tax treatment of certain property and casualty insurance companies. Sec. 246. Repeal of small life insurance company deduction. Sec. 247. Termination of $25,000 exemption from passive loss rules for rental real estate activities. Sec. 248. Repeal of discharge of indebtedness exclusion. Sec. 249. Repeal of certain exceptions for imputed interest rules. Sec. 250. Treatment of capital gains and dividends as ordinary income. Sec. 251. Termination of partial exclusion for gain from certain small business stock. Sec. 252. Termination of treatment of losses on small business stock as ordinary. Sec. 253. Repeal of student loan interest deduction. Sec. 254. Repeal of deduction of tuition and related expenses. Sec. 255. Repeal of gross income exclusion for United States savings bonds used to pay higher education expenses. Sec. 256. Elimination of personal exemption for students age 19 and older. Sec. 257. Elimination of above the line deduction for certain expenses of elementary and secondary school teachers. Sec. 258. Elimination of gross income exclusion for discharge of certain student loan debt. Sec. 259. Repeal of exclusion from gross income for rental value of parsonages. Sec. 260. Repeal of exclusion from gross income for benefits provided to volunteer firefighters and emergency medical responders. Sec. 261. Repeal of special treatment of Blue Cross and Blue Shield organizations, etc. Sec. 262. Sense of the House regarding a territorial tax system. Sec. 263. Temporary dividends received deduction allowed for 2011 or 2012. Subtitle C—Phaseout of Tax Expenditures Sec. 271. Five-year phaseout of certain tax expenditures. Subtitle D—Special Status Sec. 381. Termination of qualified energy conservation bonds. Sec. 382. Termination of new clean renewable energy bonds. Sec. 383. Termination of exempt facility bond treatment for water, sewage, and solid waste facilities. Sec. 384. Termination of expensing and amortization of reforestation expenditures and expensing of timber-growing costs. Sec. 385. Termination of deferral of gain on sales of stock in agricultural refiners and processors to eligible farm cooperatives. Sec. 386. Termination of election to expense certain depreciable business assets. Sec. 387. Termination of qualified small issue bonds. Sec. 388. Termination of exempt facility bond treatment for qualified highway or surface freight transfer facilities. Sec. 389. Termination of exempt facility bond treatment for airports, docks, and wharves. Sec. 390. Termination of tribal economic development bonds. Sec. 391. Termination of exclusion from gross income of United States savings bonds interest used to pay higher education expenses. Sec. 392. Termination of qualified zone academy bonds. Sec. 393. Termination of exempt facility bond treatment for qualified public educational facilities. Sec. 394. Termination of hospital bonds.
<enum>I</enum><header>Reduced expenditures</header> <section id="HF2D345AC697D491AB3C5A0813FB05F30"><enum>101.</enum><header>Reduction in appropriations to the White House and Congress</header> <subsection id="HDBC218A4C97D4D8280D0259FD2E7D1E1"><enum>(a)</enum><header>Appropriations to the White House</header><text>Notwithstanding any other provision of law, the total amount of funds appropriated to the appropriations account under the heading <quote><header-in-text level="subsection" style="OLC">The White House</header-in-text></quote> under the heading <quote><header-in-text level="subsection" style="OLC">EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS APPROPRIATED TO THE PRESIDENT</header-in-text></quote> for each of fiscal years 2012 through 2016 may not exceed 85 percent of the total amount of funds appropriated to that account for fiscal year 2011.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="HBC6379A6CB6D40808D140228BD17EF61"><enum>(b)</enum><header>Appropriations to Congress</header><text>Notwithstanding any other provision of law, the total amount of funds appropriated under the headings <quote><header-in-text level="subsection" style="OLC">SENATE</header-in-text></quote> and <quote><header-in-text level="subsection" style="OLC">HOUSE OF REPRESENTATIVES</header-in-text></quote> for each of fiscal years 2012 through 2016 may not exceed 85 percent of the total amount of funds appropriated under those headings for fiscal year 2011.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="HF122057CA61F42888D72B809FF4F9C45"><enum>102.</enum><header>No cost of living adjustment in pay of Members of Congress</header><text display-inline="no-display-inline">Notwithstanding any other provision of law, no adjustment shall be made under section 601(a) of the Legislative Reorganization Act of 1946 (2 U.S.C. 31) (relating to cost of living adjustments for Members of Congress) during fiscal years 2013, 2014, and 2015.</text> </section><section commented="no" display-inline="no-display-inline" id="HC05ABCD8CACC4D61B02C8B068909F478"><enum>103.</enum><header>Pay freeze for Federal employees</header><text display-inline="no-display-inline">Section 147 of the Continuing Appropriations Act, 2011 (Public Law 111–242) is amended—</text> <paragraph commented="no" display-inline="no-display-inline" id="H05C45123DDDB439CAABB5866CB262B80"><enum>(1)</enum><text>in subsection (b)(1), by striking <quote>December 31, 2012</quote> and inserting <quote>December 31, 2015</quote>; and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC03EF68A55004EE2BD09F9AA747F72D7"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (c), by striking <quote>December 31, 2012</quote> and inserting <quote>December 31, 2015</quote>.</text> </paragraph></section><section id="HA3FE18158FA14A01BBAAC969BF1AC99F"><enum>104.</enum><header>Reduction in Federal workforce</header> <subsection id="HFFBBEC4D092D4B2ABA79ABFA75302A27"><enum>(a)</enum><header>Definition</header><text>For the purpose of this section—</text> <paragraph id="H68B9313DF6AD4FBCB3287E1A3E77FD56"><enum>(1)</enum><text>the term <term>total number of Federal employees</term> means the total number of Federal employees in all agencies;</text> </paragraph><paragraph id="H4535A4663AAB4C2681008A66867EBE53"><enum>(2)</enum><text>the term <term>Federal employee</term> means an employee as defined by section 2105 of title 5, United States Code; and</text> </paragraph><paragraph id="H0D0A5D1145EE4E6B80CBF4373EC58B2F"><enum>(3)</enum><text>the term <term>agency</term> means an Executive agency as defined by section 105 of title 5, United States Code, excluding the Government Accountability Office.</text> </paragraph></subsection><subsection id="HEBCEEC73A0A741CB97B366C4C26B75BE"><enum>(b)</enum><header>Limitation</header><text>The President, through the Office of Management and Budget (in consultation with the Office of Personnel Management), shall take appropriate measures to ensure that, effective beginning in fiscal year 2015, the total number of Federal employees (as determined under subsection (c)) shall not exceed 90 percent of the total number of Federal employees as of September 30, 2011 (as so determined).</text> </subsection><subsection id="HEF713E2BB86944B09A8BC9B735984AD0"><enum>(c)</enum><header>Monitoring and notification</header><text>The Office of Management and Budget (in consultation with the Office of Personnel Management)—</text> <paragraph id="HC0AE1F214F814E39B9269F65E9397B2E"><enum>(1)</enum><text>shall continuously monitor all agencies and make a determination, as of September 30, 2011, and the last day of each quarter of each fiscal year beginning thereafter, as to whether or not the total number of Federal employees exceeds the maximum number allowable under subsection (b); and</text> </paragraph><paragraph id="H0E0DFCA0AC36439589EDBB6C7C5877AD"><enum>(2)</enum><text>whenever a determination under paragraph (1) is made that the total number of Federal employees exceeds the maximum number allowable under subsection (b), shall provide written notice to that effect to the President and Congress within 14 days after the last day of the quarter to which such determination relates.</text> </paragraph></subsection><subsection id="HC72932E747F0401A9997E5E6EA75188D"><enum>(d)</enum><header>Compliance</header><text>Whenever, with respect to the quarter ending on September 30, 2014, or any subsequent quarter, the Office of Management and Budget provides written notice under subsection (c)(2) that the total number of Federal employees exceeds the maximum number allowable under subsection (b), no agency may thereafter appoint any employee to fill any vacancy within such agency until the Office of Management and Budget provides written notice to the President and Congress of a determination under subsection (c)(1) that the total number of Federal employees no longer exceeds the maximum number allowable under subsection (b). Any notice under the preceding sentence shall be provided within 14 days after the last day of the quarter to which the determination relates.</text> </subsection><subsection id="H6F99FCAA2BA34A35BCB225200D74162B"><enum>(e)</enum><header>Waiver</header> <paragraph id="HB6086F344BB6444CA04F06E67F585EC1"><enum>(1)</enum><header>Emergencies</header><text>This section may be waived upon a determination by the President that—</text> <subparagraph id="H16EFCE4EBC724B218678C0144E9381AE"><enum>(A)</enum><text>the existence of a state of war or other national security concern so requires; or</text> </subparagraph><subparagraph id="HB92FD3EF212746698799EDEAB93FEDC5"><enum>(B)</enum><text>the existence of an extraordinary emergency threatening life, health, public safety, property, or the environment so requires.</text> </subparagraph></paragraph><paragraph id="H2952E9DCCB0544A29DE0789062C029CD"><enum>(2)</enum><header>Agency efficiency or critical mission</header><text display-inline="yes-display-inline">This section may be waived, with respect to a particular position or category of positions in an agency, upon a determination by the President that the efficiency of the agency or the performance of a critical agency mission so requires.</text> </paragraph></subsection><subsection id="H73A79E1F79F44CA3B383554204F82E94"><enum>(f)</enum><header>Replacement rate</header><text>To the extent necessary to achieve the workforce reduction required by subsection (b), the Office of Management and Budget (in consultation with the Office of Personnel Management) shall take appropriate measures to ensure that agencies shall appoint no more than 1 employee for every 3 employees retiring or otherwise separating from Government service after the date of the enactment of this Act. This subsection shall cease to apply after September 30, 2014.</text> </subsection><subsection id="H8DF077D243CF46F4AF4949974C35C2F1"><enum>(g)</enum><header>Counting rule</header><text>For purposes of this section, any determination of the number of employees in an agency shall be expressed on a full-time equivalent basis.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="HDDDD4480816642D6973E7CD46C3FA93D"><enum>(h)</enum><header>Limitation on procurement of service contracts</header><text>The President, through the Office of Management and Budget (in consultation with the Office of Personnel Management), shall take appropriate measures to ensure that there is no increase in the procurement of service contracts by reason of the enactment of this Act, except in cases in which a cost comparison demonstrates that such contracts would be to the financial advantage of the Government.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="H459ECF8AA2014431BEF76E100380511C"><enum>105.</enum><header>Reduction in Government travel costs</header> <subsection id="H6D2B4D17862745FE82C1A6A22E96FB68"><enum>(a)</enum><header>Definition</header><text>In this section, the term <term>agency</term> means an executive agency as defined under section 105 of title 5, United States Code.</text> </subsection><subsection id="H7FAE07E0104C4082917ACD19ADBDB38B"><enum>(b)</enum><header>Reduction</header><text>Notwithstanding any other provision of law, the total amount of funds appropriated to the appropriations account providing for travel expenses for each agency for each of fiscal years 2012, 2013, 2014, 2015, and 2016 may not exceed 80 percent of the total amount of funds appropriated to each of those appropriations accounts for fiscal year 2011.</text> </subsection></section><section id="H730191705E114FE9B33A8820E9C4CF89"><enum>106.</enum><header>Limitation on Government printing costs</header><text display-inline="no-display-inline">Not later than 180 days after the date of enactment of this Act, the Director of the Office of Management and Budget shall coordinate with the heads of Federal departments and independent agencies to—</text> <paragraph id="H50AAF5ECBFF74498B110B371F304EB0F"><enum>(1)</enum><text>determine which Government publications could be available on Government websites and no longer printed and to devise a strategy to reduce overall Government printing costs over the 10-year period beginning with fiscal year 2012, except that the Director shall ensure that essential printed documents prepared for social security recipients, medicare beneficiaries, and other populations in areas with limited internet access or use continue to remain available;</text> </paragraph><paragraph id="H127D03DFCC2F4D998B8A9F0F69AE6D12"><enum>(2)</enum><text>establish government-wide Federal guidelines on employee printing;</text> </paragraph><paragraph id="H6C396B2AFD8646E7A7758A6375E97BBB"><enum>(3)</enum><text>issue on the Office of Management and Budget's public website the results of a cost-benefit analysis on implementing a digital signature system and on establishing employee printing identification systems, such as the use of individual employee cards or codes, to monitor the amount of printing done by Federal employees; except that the Director of the Office of Management and Budget shall ensure that Federal employee printing costs unrelated to national defense, homeland security, border security, national disasters, and other emergencies do not exceed $860,000,000 annually; and</text> </paragraph><paragraph id="H9D0E1BD0448A45D6B3DCE0677CAC2FD0"><enum>(4)</enum><text>issue guidelines requiring every department, agency, commission or office to list at a prominent place near the beginning of each publication distributed to the public and issued or paid for by the Federal Government—</text> <subparagraph id="HA05DC6386BA54FE9A5DD5FC302867C67"><enum>(A)</enum><text>the name of the issuing agency, department, commission or office;</text> </subparagraph><subparagraph id="HFFA519463D0748F0855BA160D259CBE8"><enum>(B)</enum><text>the total number of copies of the document printed;</text> </subparagraph><subparagraph id="HAEDD3BCC21124DB8B7F62177E683FEC6"><enum>(C)</enum><text>the collective cost of producing and printing all of the copies of the document; and</text> </subparagraph><subparagraph id="H933185F47CBB4B8B8CB72A9EFD0C63BF"><enum>(D)</enum><text>the name of the firm publishing the document.</text> </subparagraph></paragraph></section><section id="HDA1366F62F2F4DE89CD17F4FCFA759A1"><enum>107.</enum><header>Reduction in Federal vehicle costs</header><text display-inline="no-display-inline">Notwithstanding any other provision of law, for fiscal year 2012 and each fiscal year thereafter, the amount made available to the General Services Administration for the acquisition of new vehicles for the Federal fleet shall not exceed an amount equal to 80 percent of the amount made available for the acquisition of those vehicles for fiscal year 2010.</text> </section><section id="H8C1FFEB178E34338ACBBCF18E411EE21"><enum>108.</enum><header>Sale of excess Federal property</header> <subsection id="H6769740B401F4A5C9E29BC81E8DF2FC5"><enum>(a)</enum><header>In general</header><text>Chapter 5 of subtitle I of title 40, United States Code, is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H99A6E5061D6F4E738DA7667F401870E1" style="USC"> <subchapter id="HED81C9AE9FEA45EFAE0D7E20C7576E7A"><enum>VII</enum><header>Expedited disposal of real property</header> <section id="HB63EEB13AC274D38A390D553B01EC74F"><enum>621.</enum><header>Definitions</header><text display-inline="no-display-inline">In this subchapter:</text> <paragraph id="H976AA2710C564E2F8713D3CA71F60920"><enum>(1)</enum><header>Director</header><text>The term <term>Director</term> means the Director of the Office of Management and Budget.</text> </paragraph><paragraph id="HB581978760224F1E81FA83745327B833"><enum>(2)</enum><header>Landholding agency</header><text>The term <term>landholding agency</term> means a landholding agency (as defined in section 501(i) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11411(i))).</text> </paragraph><paragraph id="HFF36B8D21A044EFCA9ADED36108718B9"><enum>(3)</enum><header>Real property</header> <subparagraph id="HAE2B0B1005CC4F9A80C893CEC70F07F8"><enum>(A)</enum><header>In general</header><text>The term <term>real property</term> means—</text> <clause id="HF272A63823404A178A91E24480DAF19B"><enum>(i)</enum><text>a parcel of real property under the administrative jurisdiction of the Federal Government that is—</text> <subclause id="H5B9C0A7357F74404A4D3CD66EC3CF30C"><enum>(I)</enum><text>excess;</text> </subclause><subclause id="H0D523007473446E4A1CBE54B651215EE"><enum>(II)</enum><text>surplus;</text> </subclause><subclause id="HBEB9E27FF53B4A14B67D7DDAB5C8413F"><enum>(III)</enum><text>underperforming; or</text> </subclause><subclause id="HBBFE17D260824D0294873862DF60A0B2"><enum>(IV)</enum><text>otherwise not meeting the needs of the Federal Government, as determined by the Director; and</text> </subclause></clause><clause id="H3F0F580D48034462963C77C87FD1B521"><enum>(ii)</enum><text>a building or other structure located on real property described in clause (i).</text> </clause></subparagraph><subparagraph id="H4C84C661AFC44459972C2466476A11A3"><enum>(B)</enum><header>Exclusion</header><text>The term <term>real property</term> excludes any parcel of real property, and any building or other structure located on real property, that is to be closed or realigned under the Defense Authorization Amendments and Base Closure and Realignment Act (10 U.S.C. 2687 note; Public Law 100–526).</text> </subparagraph></paragraph></section><section id="HADEE87D620BA4FC08FC9ED8C8E87CD84"><enum>622.</enum><header>Disposal program</header> <subsection id="H4AEBF31984E04D2A819FF7BEBA8E9D16"><enum>(a)</enum><header>In general</header><text>Except as provided in subsection (e), the Director shall, by sale or auction, dispose of a quantity of real property with an aggregate value of not less than $100,000,000 that, as determined by the Director, is not being used, and will not be used, to meet the needs of the Federal Government for the period of fiscal years 2011 through 2015.</text> </subsection><subsection id="H0631038383AB46A3B19C81C512207117"><enum>(b)</enum><header>Recommendations</header><text>The head of each landholding agency shall recommend to the Director real property for disposal under subsection (a).</text> </subsection><subsection id="H841859F63FF0474F91AA419ACD6DC460"><enum>(c)</enum><header>Selection of properties</header><text>After receiving recommendations of candidate real property under subsection (b), the Director—</text> <paragraph id="H6B2EC394AF964297B6201ECA331BB27C"><enum>(1)</enum><text>with the concurrence of the head of each landholding agency, may select the real property for disposal under subsection (a); and</text> </paragraph><paragraph id="H247FFA819CF143EC965E6F6501719391"><enum>(2)</enum><text>shall notify the recommending landholding agency head of the selection of the real property.</text> </paragraph></subsection><subsection id="H0C943D8C529C4A0EA80600B4AFB037A5"><enum>(d)</enum><header>Website</header><text>The Director shall ensure that all real properties selected for disposal under this section are listed on a website that shall—</text> <paragraph id="H2E31EEB40171428CA363F2CF9A02344B"><enum>(1)</enum><text>be updated routinely; and</text> </paragraph><paragraph id="HFD88309AADB8444ABAD9FD766ABFDC61"><enum>(2)</enum><text>include the functionality to allow any member of the public, at the option of the member, to receive updates of the list through electronic mail.</text> </paragraph></subsection><subsection id="HF70BBF65B05D4954B90AF1B7BBE23B25"><enum>(e)</enum><header>Transfer of property</header><text>The Director may transfer real property selected for disposal under this section to the Department of Housing and Urban Development if the Secretary of Housing and Urban Development determines that the real property is suitable for use in assisting the homeless.</text> </subsection></section></subchapter><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H5F05D75B8DD045BD8D8EB417E0DD2079"><enum>(b)</enum><header>Technical and Conforming Amendment</header><text display-inline="yes-display-inline">The table of sections for chapter 5 of subtitle I of title 40, United States Code, is amended by inserting after the item relating to section 611 the following:</text> <quoted-block id="HB957AC836071445898A6CD5C84B40678" style="USC"> <toc> <toc-entry idref="HED81C9AE9FEA45EFAE0D7E20C7576E7A" level="subchapter">SUBCHAPTER VII—Expedited disposal of real property</toc-entry> <toc-entry idref="HB63EEB13AC274D38A390D553B01EC74F" level="section">Sec. 621. Definitions.</toc-entry> <toc-entry idref="HADEE87D620BA4FC08FC9ED8C8E87CD84" level="section">Sec. 622. Disposal program.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="H87103865076A4CC6B18096499B869220"><enum>109.</enum><header>Prohibition on earmarks</header><text display-inline="no-display-inline">Section 312 of the Congressional Budget Act of 1974 is amended by inserting at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HA05896FD55544D098F45A14B8FBB928A" style="OLC"> <subsection id="HD435E4B2FEF1478E9F32BE2DD0C413E4"><enum>(g)</enum><header>Prohibition on earmarks</header> <paragraph id="H6A99F083B9664FBF8AD8E6FFD7DB9A3F"><enum>(1)</enum><header>Bills and joint resolutions</header> <subparagraph id="H1A8A73059BFD4EDDBA97023A86DCD35B"><enum>(A)</enum><header>In general</header><text>It shall not be in order in the Senate or the House of Representatives to consider a bill, resolution, or amendment that includes an earmark, limited tax benefit, or limited tariff benefit.</text> </subparagraph><subparagraph id="HDD61B78DD8004E569990BEA4C27F63D1"><enum>(B)</enum><header>Procedure</header><text>In the Senate, a point of order under this paragraph may be raised by a Senator as provided in section 313(e) of the Congressional Budget Act of 1974.</text> </subparagraph></paragraph><paragraph id="H3130240E9D7E4E7197ECF508D951FE7C"><enum>(2)</enum><header>Conference report</header> <subparagraph id="H990DBABCF753437293C7782DC1AB8D40"><enum>(A)</enum><header>In general</header><text>It shall not be in order in the Senate or the House of Representatives to vote on the adoption of a report of a committee of conference if the report includes an earmark, limited tax benefit, or limited tariff benefit.</text> </subparagraph><subparagraph id="H9F60051E793A4F04A417733C81EEDE46"><enum>(B)</enum><header>Procedure</header><text>When the Senate is considering a conference report on, or an amendment between the Houses in relation to, an appropriations act, upon a point of order being made by any Senator pursuant to this paragraph, and such point of order being sustained, such material contained in such conference report shall be deemed stricken, and the Senate shall proceed to consider the question of whether the Senate shall recede from its amendment and concur with a further amendment, or concur in the House amendment with a further amendment, as the case may be, which further amendment shall consist of only that portion of the conference report or House amendment, as the case may be, not so stricken. Any such motion in the Senate shall be debatable under the same conditions as was the conference report. In any case in which such point of order is sustained against a conference report (or Senate amendment derived from such conference report by operation of this subsection), no further amendment shall be in order.</text> </subparagraph></paragraph><paragraph id="HBE821D2B7814438385183EA6E56318CD"><enum>(3)</enum><header>Waiver</header><text>Any Senator may move to waive any or all points of order under this subsection by an affirmative vote of two-thirds of the Members, duly chosen and sworn.</text> </paragraph><paragraph id="H3FF2A25A4D6F45B9B4B44681947B14DB"><enum>(4)</enum><header>Definitions</header><text>For the purpose of this subsection—</text> <subparagraph id="HE976C3504F1A4517855C036F03146873"><enum>(A)</enum><text>the term <term>earmark</term> means a provision or report language included primarily at the request of a Senator or Member of the House of Representatives providing, authorizing, or recommending a specific amount of discretionary budget authority, credit authority, or other spending authority for a contract, loan, loan guarantee, grant, loan authority, or other expenditure with or to an entity, or targeted to a specific State, locality or Congressional district, other than through a statutory or administrative formula-driven or competitive award process;</text> </subparagraph><subparagraph id="HC4F6C1D14F7E4DF6A86A23D8763DFD2E"><enum>(B)</enum><text>the term <term>limited tax benefit</term> means any revenue provision that—</text> <clause id="HC05F6CF8FB114A29B6C578535F35AD3E"><enum>(i)</enum><text>provides a Federal tax deduction, credit, exclusion, or preference to a particular beneficiary or limited group of beneficiaries under the Internal Revenue Code of 1986; and</text> </clause><clause id="HE2122C6F3C4C4603B82A119373ED2A89"><enum>(ii)</enum><text>contains eligibility criteria that are not uniform in application with respect to potential beneficiaries of such provision; and</text> </clause></subparagraph><subparagraph id="H101D3E57269944EB8D1B81462659E8E6"><enum>(C)</enum><text>the term <term>limited tariff benefit</term> means a provision modifying the Harmonized Tariff Schedule of the United States in a manner that benefits 10 or fewer entities.</text> </subparagraph></paragraph><paragraph id="H2412794871F34FEB857BE93C5B31B616"><enum>(5)</enum><header>Application</header><text>This subsection shall not apply to any authorization of appropriations to a Federal entity if such authorization is not specifically targeted to a State, locality or congressional district.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><enum>II</enum><header>Tax Reform</header> <subtitle id="HD3F0FAD8D9FF4E789C3A3FA5515EE153"><enum>A</enum><header>Tax rates</header> <section id="HA7155DD1D21D4E9493153F7DD97DAC77"><enum>201.</enum><header>Individual rates</header> <subsection id="HE5995AB258B844CBBE81FC9CD0D4C804"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="HACD12EC78EA748AFB258843506E2444F" style="OLC"> <subsection id="H76161BC0CECD4E57958E2E1812FF2051"><enum>(j)</enum><header>Post-2012 rate table</header> <paragraph id="H08A680087795420B8254B5E47947E5A8"><enum>(1)</enum><header>In general</header><text>In the case of taxable years beginning after December 31, 2012, the following table shall apply in lieu of the tables under subsections (a), (b), (c), (d), and (e):</text> <table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.4" table-template-name="Tax Rate" table-type="Leaderwork, Tax"> <tgroup cols="2" rowsep="0"><colspec coldef="txt" colname="column1" colwidth="162pts" min-data-value="140"></colspec><colspec coldef="txt" colname="column2" colsep="0" colwidth="162pts" min-data-value="140"></colspec> <thead> <row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"><bold>If taxable income is:</bold></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold>The tax is:</bold></entry> </row> </thead> <tbody> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">Not over $100,000</entry><entry align="right" colname="column2" rowsep="0">10% of taxable income </entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">Over $100,000</entry><entry align="right" colname="column2" rowsep="0">$10,000, plus 20% of the excess over $100,000.</entry> </row> </tbody> </tgroup> </table> </paragraph><paragraph id="HBD37EF1BB785497DBCE36EE43AA5D3F1"><enum>(2)</enum><header>Inflation adjustment</header> <subparagraph id="H99F288EA3B52412B98DEC3D2CCC148E6"><enum>(A)</enum><header>In general</header><text>In the case of any taxable year beginning after 2013, the Secretary shall prescribe, in the same manner as under subsection (f), a table which shall apply in lieu of the table under paragraph (1), except that subsection (f)(3)(B) shall be applied by substituting <quote>2012</quote> for <quote>1992</quote>.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H7EAD7C1A36FC441DA5787F65EAF0ABA4"><enum>(b)</enum><header>Maximum capital gains rate</header><text>Paragraph (1) of section 1(b) of such Code is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H278C8770651F4F068CD37D2C45B8A266" style="OLC"> <paragraph id="H1B37F092A14744588E9AF0070AF89F52"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">If a taxpayer has a net capital gain for any taxable year, the tax imposed by this section for such taxable year shall not exceed the sum of—</text> <subparagraph id="HBCD6879F43CA4F4CB61178B9349DEF75"><enum>(A)</enum><text>a tax computed at the rates and in the same manner as if this subsection had not been enacted on taxable income reduced by the net capital gain;</text> </subparagraph><subparagraph id="HEF9A760AC4794055B4569B7F5306740F"><enum>(B)</enum><text>0 percent of so much of the net capital gain as does not exceed $1,000,000; and</text> </subparagraph><subparagraph id="H759965269F014F5EAEE0E264C45566A0"><enum>(C)</enum><text>20 percent of so much of net capital gain as exceeds $1,000,000.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="H9A18E68C498E47C4A3E28E9287A861AB"><enum>202.</enum><header>Repeal of alternative minimum tax on individuals</header> <subsection id="H62B195EDDC954A1CA08DE9D51BF5A0BB"><enum>(a)</enum><header>In general</header><text>Section 55(a) of the Internal Revenue Code of 1986 (relating to alternative minimum tax imposed) is amended by adding at the end the following new flush sentence:</text> <quoted-block id="HBFE49732CB084A33974B80809DC1822B" style="OLC"> <quoted-block-continuation-text indent="flush-left" quoted-block-continuation-text-level="subsection">For purposes of this title, the tentative minimum tax on any taxpayer other than a corporation for any taxable year beginning after December 31, 2011, shall be zero.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H8C2D1697D61B4AA5B4C5F9EEFFE30549"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to taxable years beginning after December 31, 2011.</text> </subsection></section><section id="H2CC4F4D9F96B4244BCB1C373FE58A077"><enum>203.</enum><header>Permanent repeal of personal exemption phaseout</header><text display-inline="no-display-inline">Section 901 of the Economic Growth and Tax Relief Reconciliation Act of 2001 shall not apply to the amendments made by section 102 of such Act.</text> </section><section id="H89A7F2147C5A43B6A90BA75CD5764E49"><enum>204.</enum><header>Permanent repeal of phaseout of overall limitation on itemized deductions</header><text display-inline="no-display-inline">Section 901 of the Economic Growth and Tax Relief Reconciliation Act of 2001 shall not apply to the amendments made by section 103 of such Act.</text> </section><section display-inline="no-display-inline" id="H5BE9B21A9B6F400AA25EABF0D5F2FA93" section-type="subsequent-section"><enum>205.</enum><header>Corporate income tax rate reduced to flat rate of 20 percent</header> <subsection display-inline="no-display-inline" id="H5289DD33F1564D4D828CCCB45F529C8F"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Paragraph (1) of section 11(b) of the Internal Revenue Code of 1986 is amended by striking <quote>shall be the sum of—</quote> and all that follows through the period at the end and inserting <quote>shall be 20 percent of taxable income.</quote>.</text> </subsection><subsection id="H3FEBCFFB5D8D42B8AEE9EEF29853BACF"><enum>(b)</enum><header>Personal Service Corporations</header><text display-inline="yes-display-inline">Paragraph (2) of section 11(b) of such Code is amended by striking <quote>35 percent</quote> and inserting <quote>20 percent</quote>.</text> </subsection><subsection id="H65C63AD58A954B67AF0E9A41DF6093D4"><enum>(c)</enum><header>Conforming Amendments</header> <paragraph id="H33D50E90D9BA4C238FF9C7AAE730BEA0"><enum>(1)</enum><text display-inline="yes-display-inline">Subsection (a) of section 1201 of such Code is amended—</text> <subparagraph id="HCF26902B020E43D7B264E3619578B490"><enum>(A)</enum><text>by striking <quote>35 percent (determined without regard to the last 2 sentences of section 11(b))</quote> and inserting <quote>20 percent</quote>, and</text> </subparagraph><subparagraph id="H672F146219774B5091E2BF999D0207A8"><enum>(B)</enum><text>by striking <quote>35 percent</quote> each place it appears (other than in the matter preceding paragraph (1)) and inserting <quote>20 percent</quote>.</text> </subparagraph></paragraph><paragraph id="HB7D903BC03E84CE2862338AD288E988F"><enum>(2)</enum><text>Paragraphs (1), (2), and (6) of section 1445(e) of such Code are each amended by striking <quote>35 percent</quote> and inserting <quote>20 percent</quote>.</text> </paragraph></subsection><subsection id="H6FB0EC385FFB4DFCB9D2D080EF1C92B0"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text> </subsection></section><section id="HB24D07A1A76E43B2AEFB58C6FEB99EBE"><enum>206.</enum><header>Renewed temporary dividends received deduction</header> <subsection id="H024F8F7C54344738A6D4367DDFBFAE21"><enum>(a)</enum><header>Election</header><text>Subsection (f) of section 965 of the Internal Revenue Code of 1986 (relating to election) is amended to read as follows:</text> <quoted-block id="H8BFCB9D5B22C481B972ABEEEEB0B283D" style="OLC"> <subsection id="HEB9F65032C13432D8B181C66269707E8"><enum>(f)</enum><header>Election</header><text>The taxpayer may elect to apply this section to—</text> <paragraph id="H065BD5F7A9E74399A62330AE8172523A"><enum>(1)</enum><text>the taxpayer’s last taxable year which begins before the date of the enactment of this subsection, or</text> </paragraph><paragraph id="HBF72E4C3117D47FD9F2A16353E07A201"><enum>(2)</enum><text>the taxpayer’s first taxable year which begins during the 1-year period beginning on such date.</text> </paragraph><continuation-text continuation-text-level="subsection">Such election may be made for a taxable year only if made on or before the due date (including extensions) for filing the return of tax for such taxable year.</continuation-text></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H4477B351E2B343749C03FCA06F2E032E"><enum>(b)</enum><header>Limitation</header><text>Paragraph (1) of section 965(b) of such Code is amended to read as follows:</text> <quoted-block id="HF267942E83F84470916817FF963263F4" style="OLC"> <paragraph id="H58AEA58B31CB4EBEBF9191B501D747EE"><enum>(1)</enum><header>In general</header><text>The amount of dividends taken into account under subsection (a) shall not exceed the sum of the current and accumulated earnings and profits described in section 959(c)(3) for the year a deduction is claimed under subsection (a), without diminution by reason of any distributions made during the election year, for all controlled foreign corporations of the United States shareholder.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HCC6DF992C90E4B2F92A64657F240FBC5"><enum>(c)</enum><header>Failure To maintain employment levels</header><text>Paragraph (4) of section 965(b) of such Code (relating to limitations) is amended to read as follows:</text> <quoted-block id="H4CABB09144BC4425B8F128FDE74A6C15" style="OLC"> <paragraph id="H4E343195BA774CC4A9F8A1BC1321C8EE"><enum>(4)</enum><header>Reduction in benefits for failure to maintain employment levels</header> <subparagraph id="HB6B345D11CC34D3C912FF5BF5091F096"><enum>(A)</enum><header>In general</header><text>If, during the period consisting of the calendar month in which the taxpayer first receives a distribution described in subsection (a)(1) and the succeeding 23 calendar months, the taxpayer does not maintain an average employment level at least equal to the taxpayer’s prior average employment, an additional amount equal to $25,000 multiplied by the number of employees by which the taxpayer’s average employment level during such period falls below the prior average employment (but not exceeding the aggregate amount allowed as a deduction pursuant to subsection (a)(1)) shall be taken into income by the taxpayer during the taxable year that includes the final day of such period.</text> </subparagraph><subparagraph id="H5A1F58B39CEC4756AF7B91614874EAFC"><enum>(B)</enum><header>Average employment level</header><text>For purposes of this paragraph, the taxpayer’s average employment level for a period shall be the average number of full-time United States employees of the taxpayer, measured at the end of each month during the period.</text> </subparagraph><subparagraph id="H86ED2BE3F10C44518308AF68F6CD104B"><enum>(C)</enum><header>Prior average employment</header><text>For purposes of this paragraph, the taxpayer’s <quote>prior average employment</quote> shall be the average number of full-time United States employees of the taxpayer during the period consisting of the 24 calendar months immediately preceding the calendar month in which the taxpayer first receives a distribution described in subsection (a)(1).</text> </subparagraph><subparagraph id="H745D53D9FB044DC48A2C174DA428F159"><enum>(D)</enum><header>Full-time united states employee</header><text>For purposes of this paragraph—</text> <clause id="HFFADA3C33DF14E57A7592B279D632D7A"><enum>(i)</enum><header>In general</header><text>The term <quote>full-time United States employee</quote> means an individual who provides services in the United States as a full-time employee, based on the employer’s standards and practices; except that regardless of the employer’s classification of the employee, an employee whose normal schedule is 40 hours or more per week is considered a full-time employee.</text> </clause><clause id="HE82850294A344C83BB900F5985EB6629"><enum>(ii)</enum><header>Exception for changes in ownership of trades or businesses</header><text>Such term does not include—</text> <subclause id="HF9F2A41479B34D63BB0B2D54D06538A3"><enum>(I)</enum><text>any individual who was an employee, on the date of acquisition, of any trade or business acquired by the taxpayer during the 24-month period referred to in subparagraph (A); and</text> </subclause><subclause id="H0CF444402EB14E7796AD7668A252B785"><enum>(II)</enum><text>any individual who was an employee of any trade or business disposed of by the taxpayer during the 24-month period referred to in subparagraph (A) or the 24-month period referred to in subparagraph (C).</text> </subclause></clause></subparagraph><subparagraph id="H30DB118E9B1F498CAB764529258C65EB"><enum>(E)</enum><header>Aggregation rules</header><text>In determining the taxpayer’s average employment level and prior average employment, all domestic members of a controlled group shall be treated as a single taxpayer.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="idDE727C1919F5485FB671EABB375A7808"><enum>(d)</enum><header>Threshold period</header><text>Section 965 of such Code is amended by striking <quote>June 30, 2003</quote> each place it occurs and inserting <quote>June 30, 2011</quote>.</text> </subsection><subsection id="id7D832D6C9F69427F9A339F4F4D556CB3"><enum>(e)</enum><header>Base period</header><text>Paragraph (2) of subsection 965(c) of such Code is amended by inserting at the end of subparagraph (A) the following flush sentence:</text> <quoted-block display-inline="no-display-inline" id="idEC3F72A3E506417C8EF3DD8E31B6643E" style="OLC"> <quoted-block-continuation-text indent="flush-left" quoted-block-continuation-text-level="subsection">For purposes of this paragraph, taxable years shall not include any year for which an election under section 965 was in effect.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="idF7675BE9FBCA4245B317E0AFF9CB6E57"><enum>(f)</enum><header>Indebtedness determination date</header><text>Subparagraph (B) of section 965(b)(3) of such Code is amended by striking <quote>October 3, 2004</quote> and inserting <quote>January 19, 2012</quote>.</text> </subsection><subsection id="HBEDBBDB8391A4B2D8082912921050294"><enum>(g)</enum><header>Conforming amendments</header> <paragraph id="H1EB3A59660FE4816A73EF5C5223EE3D0"><enum>(1)</enum><text>Subsection 965(c) of such Code, as amended by subsection (e), is amended by striking paragraph (1) and redesignating paragraphs (2), (3), (4), and (5) as paragraphs (1), (2), (3), and (4), respectively.</text> </paragraph><paragraph id="H876453D0FD8C4743B7687EA9F1260C91"><enum>(2)</enum><text>Paragraph 965(c)(4) of such Code, as redesignated by paragraph (1), is amended to read as follows:</text> <quoted-block id="H1B325AD33A754521B1D9E55E8F99630E" style="OLC"> <paragraph id="HD18EDDCA558C47FAA68E4DF8EEBDAE3D"><enum>(4)</enum><header>Controlled groups</header><text>All United States shareholders which are members of an affiliated group filing a consolidated return under section 1501 shall be treated as one United States shareholder.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="HE9951E470AA34C8181BB3B53AFD0FD6C"><enum>(h)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years ending on or after the date of the enactment of this Act.</text> </subsection></section></subtitle><subtitle id="H25E302AA5EE6410D9AC130DBF318ED8F"><enum>B</enum><header>Elimination of tax expenditures</header> <section id="HF1D55CBCE5F149B585369DC467DC6CD6"><enum>211.</enum><header>Termination of credit for increasing research activities</header><text display-inline="no-display-inline">Effective for taxable years beginning after the date of the enactment of this Act, section 41 of the Internal Revenue Code of 1986 is hereby repealed.</text> </section><section id="HA2206F558020430A97A08D5E80EE8A0C"><enum>212.</enum><header>Termination of deduction for intangible drilling and development costs</header> <subsection id="H00A67549E443427F9244AA5192F2123C"><enum>(a)</enum><header>In general</header><text>Section 263(c) is amended by adding at the end the following new sentence: <quote>This subsection shall not apply to any taxable year beginning after the date of the enactment of this sentence.</quote>.</text> </subsection><subsection id="H6F8F3242C907450BA99244714A138847"><enum>(b)</enum><header>Conforming amendments</header><text>Paragraphs (2) and (3) of section 291(b) are each amended by striking <quote>section 263(c), 616(a),</quote> and inserting <quote>section 616(a)</quote>.</text> </subsection><subsection id="HADCC04E2187F41FDA92E6758C950279B"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to costs paid or incurred in taxable years beginning after the date of the enactment of this Act.</text> </subsection></section><section id="H51DE566B5D394AC2A80504D216BEBF05"><enum>213.</enum><header>Repeal of domestic production activities deduction with respect to production of coal, lignite, or oil shale</header> <subsection id="H9569C13E3C27433B85A414EF3D4B9AC4"><enum>(a)</enum><header>In general</header><text>Subparagraph (B) of section 199(c)(4), as amended by this Act, is amended by striking <quote>or</quote> at the end of clause (iii), by striking the period at the end of clause (iv) and inserting <quote>, or</quote>, and by adding at the end the following new clause:</text> <quoted-block id="H2A3B047F9F5E4478BEE0D2516C6775C2" style="OLC"> <subsection id="H2FB26572731148AABFD88D7203FF230A"><enum>(v)</enum><text>the lease, rental, license, sale, exchange, or other disposition of coal, lignite, or oil shale.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HA05BB9F594724AB8985BC2F6F250AF5E"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text> </subsection></section><section id="H2DD184EC6FBA4BA6A79619030C52DEB1"><enum>214.</enum><header>Repeal percentage depletion for oil and natural gas wells</header> <subsection id="HFAC25B172B45445DBDEED37D9A2D4CD3"><enum>(a)</enum><header>In general</header><text>Section 613A is amended by adding at the end the following new subsection:</text> <quoted-block id="H45AE03D9D78A4ABF9071AA6E51EED32A" style="OLC"> <subsection id="H0ED35912EB544804A431A53E54E2A945"><enum>(f)</enum><header>Termination</header><text>After the date of the enactment of the <short-title>Implementation of Simpson-Bowles Spending Reductions Act of 2012</short-title>, this section and section 611 shall not apply to any oil or gas well.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="id73A90AFB1CBA4E91B64B9765853BA968"><enum>(b)</enum><header>Conforming amendment</header><text>Section 613A(c)(1) is amended by striking <quote>subsection (d)</quote> and inserting <quote>subsections (d) and (f)</quote>.</text> </subsection><subsection id="H32AC3BB21A4A4D31AB2F8F5E718A0214"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text> </subsection></section><section id="HF0EE51739B30411CA7E1E39C21E95C21"><enum>215.</enum><header>Termination of credit for electricity produced from certain renewable resources</header><text display-inline="no-display-inline">Effective for property placed in service after the date of the enactment of this Act, section 45 is repealed.</text> </section><section display-inline="no-display-inline" id="H14CB8E79627641D09B982B4FACB4435E" section-type="subsequent-section"><enum>216.</enum><header>Termination of energy credit</header><text display-inline="no-display-inline">Effective for property placed in service after the date of the enactment of this Act, section 48 is repealed.</text> </section><section display-inline="no-display-inline" id="H895BC4BFEA3A47999A14A60C91C81109" section-type="subsequent-section"><enum>217.</enum><header>Repeal of credit for alcohol used as fuel</header><text display-inline="no-display-inline">Effective for fuel sold or used after the date of the enactment of this Act, section 40 is repealed.</text> </section><section display-inline="no-display-inline" id="HE19BD03FFF754594835D840180316300"><enum>218.</enum><header>Repeal of credit for alcohol fuel, biodiesel, and alternative fuel mixtures</header><text display-inline="no-display-inline">Effective for fuel sold and used after the date of the enactment of this Act, section 6426 is repealed.</text> </section><section display-inline="no-display-inline" id="H2D753CC12A4C43068E8CEB7C2C232AA4" section-type="subsequent-section"><enum>219.</enum><header>Repeal of credit for biodiesel and renewable diesel used as fuel</header><text display-inline="no-display-inline">Effective for fuel produced, and sold or used, after the date of the enactment of this Act, section 40A is repealed.</text> </section><section id="HC52C0E8127B4483A883B0BA1C5E1BD99"><enum>220.</enum><header>Repeal of credit for certain plug-in electric vehicles</header><text display-inline="no-display-inline">Effective for property placed in service after the date of the enactment of this Act, section 30 is repealed.</text> </section><section id="H99F25565BE184215A2B8A772841765D8"><enum>221.</enum><header>Early termination of credit for qualified fuel cell motor vehicles</header><text display-inline="no-display-inline">Effective for property placed in service after the date of the enactment of this Act, section 30B is repealed.</text> </section><section id="HF2163972E112482DB4EB7536EC26199A"><enum>222.</enum><header>Repeal of deduction for energy conservation subsidies provided by public utilities</header><text display-inline="no-display-inline">Effective for amounts received after the date of the enactment of this Act, section 136 is repealed.</text> </section><section id="HD8768597E52141CA90164EE7B0245C18"><enum>223.</enum><header>Repeal of qualifying advanced coal project credit</header><text display-inline="no-display-inline">Effective for taxable years beginning after the date of the enactment of this Act, section 48A is repealed.</text> </section><section id="H4D36613E955B45C9AFF88036AE165A08"><enum>224.</enum><header>Repeal of qualifying gasification project credit</header><text display-inline="no-display-inline">Effective for taxable years beginning after the date of the enactment of this Act, section 48B is repealed.</text> </section><section id="H0D1CEF6BD94740C4953A3CE4FBD59B15"><enum>225.</enum><header>Repeal of special allowance for cellulosic biofuel plant property</header> <subsection id="HB5C8EDD5ADB54DFDA5C151A424980786"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 168 is amended by striking subsection (l).</text> </subsection><subsection id="HA5B06D4FECEB4EBC84CA3BD806E1BBF4"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to property placed in service after the date of the enactment of this Act.</text> </subsection></section><section id="HDFF161B2EE02442899759D8B42A94AE5"><enum>226.</enum><header>Repeal of election to expense certain refineries</header><text display-inline="no-display-inline">Effective for property placed in service after the date of the enactment of this Act, section 179C is repealed.</text> </section><section id="HB5A29C69720847CFAF362805456950E5"><enum>227.</enum><header>Repeal of 2-year amortization of geological and geophysical expenditures</header> <subsection id="HC15DAD7426AA4758A3F24686213CB42C"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Paragraphs (1) and (4) of section 167(h) are each amended by striking <quote>24-month</quote> and inserting <quote>7-year</quote>.</text> </subsection><subsection id="HA1129D86D4A84FEB94BD8122703902DF"><enum>(b)</enum><header>Conforming amendment</header><text>Subsection (h) of section 167 is amended by striking paragraph (5).</text> </subsection><subsection id="H783130FD6BC84B7A9345BA881817B845"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.</text> </subsection></section><section id="H4DAA2389714F41429ABD3CF74DA3BE79"><enum>228.</enum><header>Repeal of deduction for energy efficient commercial building property</header><text display-inline="no-display-inline">Effective for property placed in service after the date of the enactment of this Act, section 179D is repealed.</text> </section><section id="HF4431A431BDC4B84B293267337145B35"><enum>229.</enum><header>Repeal of credit for construction of new energy efficient homes</header><text display-inline="no-display-inline">Effective for homes acquired after the date of the enactment of this Act, section 45L is repealed.</text> </section><section id="HA62C08B5326348B9A0C1F3FEB5B952A8"><enum>230.</enum><header>Repeal of credit for energy efficient appliances</header><text display-inline="no-display-inline">Effective for property placed in service after the date of the enactment of this Act, section 25C is repealed.</text> </section><section id="H49D91052D8434812B153345106DDDCB5"><enum>231.</enum><header>Repeal of credit for residential energy efficient property</header><text display-inline="no-display-inline">Effective for property placed in service after the date of the enactment of this Act, section 25D is repealed.</text> </section><section id="H2EB600EFE1854A35858EFB560E060718"><enum>232.</enum><header>Repeal of advanced energy project credit</header><text display-inline="no-display-inline">Effective for property placed in service after the date of the enactment of this Act, section 48C is repealed.</text> </section><section id="HC77D88CCF0B747379155753FFB452F0C"><enum>233.</enum><header>Repeal of credit for carbon dioxide sequestration</header><text display-inline="no-display-inline">Effective for carbon dioxide captured after the date of the enactment of this Act, section 45Q is repealed.</text> </section><section id="H273682BB402041519D72778CEFAD4F67"><enum>234.</enum><header>Repeal of low-income housing credit</header><text display-inline="no-display-inline">Effective for property placed in service after the date of the enactment of this Act, section 42 is repealed.</text> </section><section id="H86EB7AB932224A47AE7F4899BD84FD19"><enum>235.</enum><header>Repeal of Hope and Lifetime Learning Credits</header><text display-inline="no-display-inline">Effective for amounts paid or incurred after the date of the enactment of this Act, section 25A is repealed.</text> </section><section id="H7326533D53E640FF99F9D30C2B53FFC1"><enum>236.</enum><header>Repeal of work opportunity tax credit</header><text display-inline="no-display-inline">Effective for wages paid after the date of the enactment of this Act, section 51 is repealed.</text> </section><section id="HA6857B648B42423EB7031FE052B03AA4"><enum>237.</enum><header>Repeal of credit for expenses for household and dependent care services necessary for gainful employment</header><text display-inline="no-display-inline">Effective for expenses paid after the date of the enactment of this Act, section 21 is repealed.</text> </section><section id="H930A8BADF40546EE84A728975294E321"><enum>238.</enum><header>Repeal of credit for adoption expenses</header><text display-inline="no-display-inline">Effective for expenses paid or incurred after the date of the enactment of this Act, section 23 is repealed.</text> </section><section id="HC3D7B8A40FA440ECAE36F1F0EB35843D"><enum>239.</enum><header>Repeal of credit for expenditures to provide access to disabled individuals</header><text display-inline="no-display-inline">Effective for expenditures paid or incurred after the date of the enactment of this Act, section 44 is repealed.</text> </section><section id="HEE5D9BF85ACB4235B222B4FB6F8F61B0"><enum>240.</enum><header>Repeal of earned income tax credit</header><text display-inline="no-display-inline">Effective for taxable years beginning after the date of the enactment of this Act, section 32 is repealed.</text> </section><section id="HC70E3DBB5ECE40AC8B8BB82A8E6EAB54"><enum>241.</enum><header>Repeal of energy conservation subsidies provided by public utilities</header><text display-inline="no-display-inline">Effective for amounts received after the date of the enactment of this Act, section 136 is repealed.</text> </section><section id="H841F1A77F931498F93B42D7470EADC03"><enum>242.</enum><header>Repeal of election to expense certain refinery property</header><text display-inline="no-display-inline">Effective for property placed in service after the date of the enactment of this Act, sections 168(l) and 179C are repealed.</text> </section><section id="HE2C8E1C6FC2248CA884216619F6EE4DB"><enum>243.</enum><header>Repeal of deduction for endangered species recovery expenditures</header> <subsection id="HE1099F10A87A49C9ACA492B22C459650"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subsections (a) and (c)(1) of section 175 are each amended by striking <quote>, or for endangered species recovery</quote>.</text> </subsection><subsection id="H6CE547D8B67A4F13B8C062C8ADEE5DCA"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="HD27B7EF741B44126A987D83A6E262BB4"><enum>(1)</enum><text>The heading for section 175 is amended by striking <quote><header-in-text level="section" style="OLC">; endangered species recovery expenditures</header-in-text></quote>.</text> </paragraph><paragraph id="HC7FA44F7323A4040B56479D437DAF176"><enum>(2)</enum><text display-inline="yes-display-inline">Paragraph (1) of section 175(c) is amended by striking the second sentence.</text> </paragraph><paragraph id="HCEECE1D17AB84A34871C84A6D081876E"><enum>(3)</enum><text>Subparagraph (A) of section 175(c)(3) is amended—</text> <subparagraph id="HBDC82B37C9D045F59E9B831A6CC23062"><enum>(A)</enum><text>by striking <quote>or the recovery plan pursuant to the Endangered Species Act of 1973</quote>, and</text> </subparagraph><subparagraph id="H941BCED9755B482CA8D1528458772A74"><enum>(B)</enum><text>by striking <quote><header-in-text level="subparagraph" style="OLC">, or endangered species recovery plan</header-in-text></quote> in the heading thereof.</text> </subparagraph></paragraph></subsection><subsection id="HF8B964986106489C8A0D03E7B25DCC41"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to expenditures paid or incurred after the date of the enactment of this Act.</text> </subsection></section><section commented="no" id="H2E4259F146A24906B050AB4451B1FF3A"><enum>244.</enum><header>Repeal of exclusion of cancellation of indebtedness income of solvent farmers</header> <subsection commented="no" id="HF824933505E74ADBBE35169E1B87E0EA"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Paragraph (1) of section 108(a) is amended by striking subparagraph (C) and by redesignating subparagraphs (D) and (E) as subparagraphs (C) and (D) respectively.</text> </subsection><subsection commented="no" id="H223C077750C74962BE1E1B72E697FF24"><enum>(b)</enum><header>Conforming amendments</header> <paragraph commented="no" id="HF9B3A1CC1F9D45F4A179AE1B79D5D11C"><enum>(1)</enum><text display-inline="yes-display-inline">Subparagraph (A) of section 108(a)(2) is amended by striking <quote>(D), and (E)</quote> and inserting <quote>and (D)</quote>.</text> </paragraph><paragraph commented="no" id="H23F9B33677FD4B3D88DC8A0DD6F35FF1"><enum>(2)</enum><text>Subparagraph (B) of section 108(a)(2) is amended—</text> <subparagraph commented="no" id="H16832AE31ABF4BB4B1C4AB2F61E81923"><enum>(A)</enum><text>by striking <quote>Subparagraphs (C) and (D)</quote> and inserting <quote>Subparagraph (C)</quote>, and</text> </subparagraph><subparagraph commented="no" id="H6A60A4BE71F84E3E8842D121996D8A26"><enum>(B)</enum><text>by striking <quote><header-in-text level="subparagraph" style="OLC">qualified farm exclusion and</header-in-text></quote>.</text> </subparagraph></paragraph><paragraph commented="no" id="HC58ED7813AD64079BD2ADE7663B90FA3"><enum>(3)</enum><text>Paragraph (1) of section 108(b) is amended by striking <quote>(B), or (C)</quote> and inserting <quote>or (B)</quote>.</text> </paragraph><paragraph commented="no" id="H4EDC8CCB565C4C5B9ACEE73F5926F0D2"><enum>(4)</enum><text display-inline="yes-display-inline">Subsection (c) of section 108 is amended by striking <quote>under subparagraph (D)</quote> each place is appears and inserting <quote>under subparagraph (C)</quote>.</text> </paragraph><paragraph commented="no" id="H4693C8A39DF4494D8697A4009DCE82B3"><enum>(5)</enum><text display-inline="yes-display-inline">Section 108 is amended by striking subsection (g) and by redesignating subsections (h) and (i) as subsections (g) and (h), respectively.</text> </paragraph></subsection><subsection commented="no" id="H550B7AFD46F64BCD860CE3E34986F42C"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to discharges of indebtedness after the date of the enactment of this Act.</text> </subsection></section><section id="H633BCF189A144C31B89F97C3FDABD7BE"><enum>245.</enum><header>Repeal of alternative minimum tax treatment of certain property and casualty insurance companies</header> <subsection id="H5F9724C643254896905B49B86162F9CD"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Clause (i) of section 56(g)(4)(B) is amended by striking the last sentence.</text> </subsection><subsection id="HAC408F5520214F88AC2A03BAA4E8EBD6"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text> </subsection></section><section id="H4D48034F902F462986E92AAE152EB4CC"><enum>246.</enum><header>Repeal of small life insurance company deduction</header> <subsection id="H92A83E8FC4DF4D9A8FF73F4A4ECF9CD2"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 806 is repealed.</text> </subsection><subsection id="HB49F58EC952C472C9ADC173F24322F93"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="H3B81D49C17D54497A790EE0EB449254E"><enum>(1)</enum><text>Section 804 is amended by striking <quote>means—</quote> and all that follows through the period at the end and inserting the following: <quote>means the general deductions provided in section 805.</quote>.</text> </paragraph><paragraph id="HDA7E1D84FDA54838BF1ED6EDEBA035E2"><enum>(2)</enum><text>Subparagraph (B) of section 453B(e)(2) is amended by inserting <quote>, as in effect on the day before the date of the enactment of the <short-title>Implementation of Simpson-Bowles Spending Reductions Act of 2012</short-title></quote> after <quote>section 806(b)(3)</quote>.</text> </paragraph><paragraph id="H7DFCF54A1D524B3D8F4910DFD650B3DC"><enum>(3)</enum><text display-inline="yes-display-inline">Subclause (II) of section 465(c)(7)(D)(v) is amended by inserting <quote>, as in effect on the day before the date of the enactment of the <short-title>Implementation of Simpson-Bowles Spending Reductions Act of 2012</short-title></quote> after <quote>section 806(b)(3)</quote>.</text> </paragraph><paragraph id="H6023489DE8384AB7B01BBD8A165375B1"><enum>(4)</enum><text>Subparagraph (A) of section 815(c)(2) is amended by striking clause (ii), by inserting <quote>and</quote> at the end of clause (i), and by redesignating clause (iii) as clause (ii).</text> </paragraph></subsection><subsection id="HA90A9BCDDE7741339985E12284916936"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text> </subsection></section><section id="H578351C3DFD64A7E959A1613EE3362C3"><enum>247.</enum><header>Termination of $25,000 exemption from passive loss rules for rental real estate activities</header> <subsection id="H60224B68ACB7421CB207BFA4A90D2836"><enum>(a)</enum><header>In general</header><text>Section 469 is amended by striking subsection (i).</text> </subsection><subsection id="H8905628ADB3B49F19667FF9FA8A7C6E1"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text> </subsection></section><section id="HC242B9AC2F674567AEBB215C4340A6D9"><enum>248.</enum><header>Repeal of discharge of indebtedness exclusion</header><text display-inline="no-display-inline">Effective for discharges of indebtedness occurring on or after the date of the enactment of this Act, section 108 is repealed.</text> </section><section id="HFF15C220F1B041E0B1EC987154BE507F"><enum>249.</enum><header>Repeal of certain exceptions for imputed interest rules</header> <subsection id="H68BB8AF592B84111B7D153677702BDFA"><enum>(a)</enum><header>Determination of issue price in the case of certain debt instruments issued for property</header><text display-inline="yes-display-inline">Paragraph (3) of section 1274(c)(3) is amended by striking subparagraphs (A), (B), and (C).</text> </subsection><subsection id="HA67744AE8B804728B678D7178315E871"><enum>(b)</enum><header>Special rule for certain transactions where stated principal amount does not exceed certain amount</header><text>Section 1274A is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H0321E40E74DA4685A78E23649934E25B" style="OLC"> <subsection id="H5286FEB95B9D487A998EE2453974F1F7"><enum>(f)</enum><header>Termination</header><text display-inline="yes-display-inline">This section shall not apply to any sales or exchanges after the date of the enactment of this Act.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HE6C1199217454FB086BB42364933614F"><enum>(c)</enum><header>Effective date</header><text>The amendment made by subsection (a) shall apply to sales or exchanges after the date of the enactment of this Act.</text> </subsection></section><section id="HBD8E91C8E1A44741922D01786603A46C"><enum>250.</enum><header>Treatment of capital gains and dividends as ordinary income</header> <subsection id="HC01D01CA88A34743BC43EE659452A6CE"><enum>(a)</enum><header>Acceleration of JGTRRA sunset</header><text>Section 303 of the Jobs and Growth Tax Relief Reconciliation Act of 2003, as amended by section 102(a) of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, is amended by striking <quote>December 31, 2012</quote> and inserting <quote>December 31, 2011</quote>.</text> </subsection><subsection id="H94F9B06EE9BD489DABDB4FB8CEFE0480"><enum>(b)</enum><header>Treatment of capital gains and dividends as ordinary income</header><text>Section 1(h), after the application of subsection (a), is amended by adding at the end the following new paragraph:</text> <quoted-block id="H5D4D1C195CD440FB9A974D66C82A1209" style="OLC"> <paragraph id="HBF513913C8B04CE3A5FD4BF5E82F2D5B"><enum>(11)</enum><header>Termination</header><text>This subsection shall not apply to taxable years beginning after the date of the enactment of the <short-title>Implementation of Simpson-Bowles Spending Reductions Act of 2012</short-title>.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="HE75A70D0F4DE4EC7A0E6FCBF6ABDAA05"><enum>251.</enum><header>Termination of partial exclusion for gain from certain small business stock</header><text display-inline="no-display-inline">Section 1202 is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H4D6086C49F634B53A361632A97CCEF56" style="OLC"> <subsection id="H650BDA4146CB4DFB9838CC50C9932A29"><enum>(l)</enum><header>Termination</header><text display-inline="yes-display-inline">This section shall not apply to any sale or exchange of stock after the date of the enactment of the <short-title>Implementation of Simpson-Bowles Spending Reductions Act of 2012</short-title>.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="HB10E602C2FC446EB9FC334A48B5717BF"><enum>252.</enum><header>Termination of treatment of losses on small business stock as ordinary</header><text display-inline="no-display-inline">Section 1244 is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H375A0B5C599A4F4AA5937DC2C50E9959" style="OLC"> <subsection id="HD1EAE8B0889C46269C702EBC438F1E26"><enum>(f)</enum><header>Termination</header><text display-inline="yes-display-inline">This section shall not apply to any sale or exchange of stock after the date of the enactment of the <short-title>Implementation of Simpson-Bowles Spending Reductions Act of 2012</short-title>.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="HD86DB81682934E399910C5FC494071DD"><enum>253.</enum><header>Repeal of student loan interest deduction</header><text display-inline="no-display-inline">Effective for any loan interest paid after the date of the enactment of this Act, section 221 is repealed.</text> </section><section id="H6F18BC15EB674CF68C3E2BDA54E5EB94"><enum>254.</enum><header>Repeal of deduction of tuition and related expenses</header><text display-inline="no-display-inline">Effective for amounts paid after the date of the enactment of this Act, section 222 is repealed.</text> </section><section id="HB6537B40C21642FB89A12B276B95CD44"><enum>255.</enum><header>Repeal of gross income exclusion for United States savings bonds used to pay higher education expenses</header><text display-inline="no-display-inline">Effective for taxable years beginning after the date of the enactment of this Act, section 135 is repealed.</text> </section><section id="H48C26ACAECFC45DE9983993AC58C0145"><enum>256.</enum><header>Elimination of personal exemption for students age 19 and older</header> <subsection id="H9A6A6230F91B4EFE8D99AA696F7E9D6A"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subparagraph (A) of section 152(c)(3) is amended—</text> <paragraph id="H748896AB471C444AA544E4F842021127"><enum>(1)</enum><text>by striking clause (ii),</text> </paragraph><paragraph id="HF9E5A8E037ED4A4BB4F817F793C51D1E"><enum>(2)</enum><text>by striking <quote>, or</quote> at the end of clause (i) and inserting a period, and</text> </paragraph><paragraph id="HF7E4AD7AC24E4C729C528B7D788A4110"><enum>(3)</enum><text>by striking <quote>child and</quote> and all that follows through <quote>(i) has not attained</quote> and inserting <quote>child and has not attained</quote>.</text> </paragraph></subsection><subsection id="H2FFE722663724D15AC0B5A982F828488"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text> </subsection></section><section id="H83907C0641F54D788B9EEDC2BECB75B4"><enum>257.</enum><header>Elimination of above the line deduction for certain expenses of elementary and secondary school teachers</header> <subsection id="H7036869D82554067AF9534C7124E5E0A"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Paragraph (2) of section 62(a) is amended by striking subparagraph (D) and by redesignating subparagraph (E) as subparagraph (D).</text> </subsection><subsection id="HEAD2CD1B475048AB8E69771D4B6D55DE"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="HF0819CFC21DF4E7C8A767EFDA3C7C688"><enum>(1)</enum><text>Section 62 is amended by striking subsection (d) and redesignating subsection (e) as subsection (d).</text> </paragraph><paragraph id="H438A6530771D4CD0AA03587C801547E4"><enum>(2)</enum><text>Paragraph (20) of section 62(a) is amended by striking <quote>subsection (e)</quote> and inserting <quote>subsection (d)</quote>.</text> </paragraph></subsection><subsection id="H191CC9B8BE934065B4C29A1BF7BF541B"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.</text> </subsection></section><section id="H8091CD1F050D4BDFAC3CF0745D9A7D72"><enum>258.</enum><header>Elimination of gross income exclusion for discharge of certain student loan debt</header><text display-inline="no-display-inline">Section 108 is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HDE66B0B68C6B413BBE91CBD3132FE658" style="OLC"> <paragraph id="H2A3D35CE009342029736A72A165BAC19"><enum>(5)</enum><header>Termination</header><text display-inline="yes-display-inline">This subsection shall not apply to discharges of indebtedness after the date of the enactment of the <short-title>Implementation of Simpson-Bowles Spending Reductions Act of 2012</short-title>.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H6C70DFDC1C0740FBBB2179058E2011F3"><enum>259.</enum><header>Repeal of exclusion from gross income for rental value of parsonages</header><text display-inline="no-display-inline">Effective for taxable years beginning after the date of the enactment of this Act, section 107 is repealed.</text> </section><section id="HEB09A6CA5CCF4769AEB86A9860EC6781"><enum>260.</enum><header>Repeal of exclusion from gross income for benefits provided to volunteer firefighters and emergency medical responders</header><text display-inline="no-display-inline">Effective for taxable years beginning after the date of the enactment of this Act, section 139B is repealed.</text> </section><section id="HD208D24426724A60AD423241BC5486F6"><enum>261.</enum><header>Repeal of special treatment of Blue Cross and Blue Shield organizations, etc</header><text display-inline="no-display-inline">Effective for taxable years beginning after the date of the enactment of this Act, section 833 is repealed.</text> </section><section id="HFA1C38CB96D6457CB19F8988ECC1A5F2"><enum>262.</enum><header>Sense of the House regarding a territorial tax system</header><text display-inline="no-display-inline">It is the sense of the House that the Committee on Ways and Means of the House of Representatives should report legislation that will transition the United States to a territorial tax system.</text> </section><section id="HFA3ECF5D0FC64220B63317FCCC27D588"><enum>263.</enum><header>Temporary dividends received deduction allowed for 2011 or 2012</header> <subsection id="H14CD502F95324B34B8FAF140B1ABD9C6"><enum>(a)</enum><header>Election</header><text>Subsection (f) of section 965 of the Internal Revenue Code of 1986 (relating to election) is amended to read as follows:</text> <quoted-block id="H7B5DD7B7945E4AE097EB0007E3A03490" style="OLC"> <subsection id="H09043ED341F8425F845546303484AA48"><enum>(f)</enum><header>Election</header><text>The taxpayer may elect to apply this section to—</text> <paragraph id="H013F203AC02B42408CBCF819C8A5A0F7"><enum>(1)</enum><text>the taxpayer’s last taxable year which begins before the date of the enactment of this subsection, or</text> </paragraph><paragraph id="H41ECECFE57F8414DA73284F6BE6E6ACD"><enum>(2)</enum><text>the taxpayer’s first taxable year which begins during the 1-year period beginning on such date.</text> </paragraph><continuation-text continuation-text-level="subsection">Such election may be made for a taxable year only if made on or before the due date (including extensions) for filing the return of tax for such taxable year.</continuation-text></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HAB3D4E7D51FB416BB19841DEA7761FAF"><enum>(b)</enum><header>Limitation</header><text>Paragraph (1) of section 965(b) of such Code is amended to read as follows:</text> <quoted-block id="H056E9D75C43B4CCAB32E2F1FFCAF0A41" style="OLC"> <paragraph id="H17694888AFA44088A74153BD98A8597B"><enum>(1)</enum><header>In general</header><text>The amount of dividends taken into account under subsection (a) shall not exceed the sum of the current and accumulated earnings and profits described in section 959(c)(3) for the year a deduction is claimed under subsection (a), without diminution by reason of any distributions made during the election year, for all controlled foreign corporations of the United States shareholder.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H20BB5B0F303141908A725568C9FFD089"><enum>(c)</enum><header>Failure To maintain employment levels</header><text>Paragraph (4) of section 965(b) of such Code (relating to limitations) is amended to read as follows:</text> <quoted-block id="H6BB32AD41EEB40B785FF0AE9040DFBAD" style="OLC"> <paragraph id="H850B8CE04A074D8BB756A7F59E4B9B60"><enum>(4)</enum><header>Reduction in benefits for failure to maintain employment levels</header> <subparagraph id="H99106B16731D455984BED859843780F4"><enum>(A)</enum><header>In general</header><text>If, during the period consisting of the calendar month in which the taxpayer first receives a distribution described in subsection (a)(1) and the succeeding 23 calendar months, the taxpayer does not maintain an average employment level at least equal to the taxpayer’s prior average employment, an additional amount equal to $25,000 multiplied by the number of employees by which the taxpayer’s average employment level during such period falls below the prior average employment (but not exceeding the aggregate amount allowed as a deduction pursuant to subsection (a)(1)) shall be taken into income by the taxpayer during the taxable year that includes the final day of such period.</text> </subparagraph><subparagraph id="HC262FE20577D4C21A51CCC2E9A7B8FFE"><enum>(B)</enum><header>Average employment level</header><text>For purposes of this paragraph, the taxpayer’s average employment level for a period shall be the average number of full-time United States employees of the taxpayer, measured at the end of each month during the period.</text> </subparagraph><subparagraph id="H217F930F26FE478791BA55F4A1D891BD"><enum>(C)</enum><header>Prior average employment</header><text>For purposes of this paragraph, the taxpayer’s <quote>prior average employment</quote> shall be the average number of full-time United States employees of the taxpayer during the period consisting of the 24 calendar months immediately preceding the calendar month in which the taxpayer first receives a distribution described in subsection (a)(1).</text> </subparagraph><subparagraph id="HD45E3F48674C41B2ABDCD343C2D0F90F"><enum>(D)</enum><header>Full-time united states employee</header><text>For purposes of this paragraph—</text> <clause id="H6C117B3899D1469BAB08824C5AF755EF"><enum>(i)</enum><header>In general</header><text>The term <quote>full-time United States employee</quote> means an individual who provides services in the United States as a full-time employee, based on the employer’s standards and practices; except that regardless of the employer’s classification of the employee, an employee whose normal schedule is 40 hours or more per week is considered a full-time employee.</text> </clause><clause id="H442A3B8280E44B47969C77B77D6D41DC"><enum>(ii)</enum><header>Exception for changes in ownership of trades or businesses</header><text>Such term does not include—</text> <subclause id="H637F0622B3F94508ADBFE13C7917616E"><enum>(I)</enum><text>any individual who was an employee, on the date of acquisition, of any trade or business acquired by the taxpayer during the 24-month period referred to in subparagraph (A); and</text> </subclause><subclause id="H5A53440B40E14A91A8901AA5B39F25C0"><enum>(II)</enum><text>any individual who was an employee of any trade or business disposed of by the taxpayer during the 24-month period referred to in subparagraph (A) or the 24-month period referred to in subparagraph (C).</text> </subclause></clause></subparagraph><subparagraph id="H145643645C5740E6B65BE207B528C7DE"><enum>(E)</enum><header>Aggregation rules</header><text>In determining the taxpayer’s average employment level and prior average employment, all domestic members of a controlled group shall be treated as a single taxpayer.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="idC58CD20296874089A3349D654B004B32"><enum>(d)</enum><header>Threshold period</header><text>Section 965 of such Code is amended by striking <quote>June 30, 2003</quote> each place it occurs and inserting <quote>June 30, 2010</quote>.</text> </subsection><subsection id="id5063A8ECBD604122A29D0D11A4F1B57F"><enum>(e)</enum><header>Base period</header><text>Paragraph (2) of subsection 965(c) of such Code is amended by inserting at the end of subparagraph (A) the following flush sentence:</text> <quoted-block display-inline="no-display-inline" id="id6F7012F4E2DD4FB2A45DF244AF500EDC" style="OLC"> <quoted-block-continuation-text indent="flush-left" quoted-block-continuation-text-level="subsection">For purposes of this paragraph, taxable years shall not include any year for which an election under section 965 was in effect.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="id78BB32023DFE4B3CA3346DB7FB1DC984"><enum>(f)</enum><header>Indebtedness determination date</header><text>Subparagraph (B) of section 965(b)(3) of such Code is amended by striking <quote>October 3, 2004</quote> and inserting <quote>January 19, 2011</quote>.</text> </subsection><subsection id="H34466168E3014286BE7756DFAD34D8C1"><enum>(g)</enum><header>Conforming amendments</header> <paragraph id="HA7D4441AFFF540C588376CE4AF832C74"><enum>(1)</enum><text>Subsection 965(c) of such Code, as amended by subsection (e), is amended by striking paragraph (1) and redesignating paragraphs (2), (3), (4), and (5) as paragraphs (1), (2), (3), and (4), respectively.</text> </paragraph><paragraph id="H4BABDF1DFC934B61815E3A7E2D11EFA1"><enum>(2)</enum><text>Paragraph 965(c)(4) of such Code, as redesignated by paragraph (1), is amended to read as follows:</text> <quoted-block id="H2D7565C7EE014FDEB85314B24C2D1E8C" style="OLC"> <paragraph id="H4DF69215882E41388BBD5FFB19A6F701"><enum>(4)</enum><header>Controlled groups</header><text>All United States shareholders which are members of an affiliated group filing a consolidated return under section 1501 shall be treated as one United States shareholder.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H2490FBDAC70545FDB23BB2A48E47E7C9"><enum>(h)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years ending on or after the date of the enactment of this Act.</text> </subsection></section></subtitle><subtitle id="H544C0BCAE18143489995898CAE439739"><enum>C</enum><header>Phaseout of Tax Expenditures</header> <section id="HEC38EEB114CD46F38B869A291AB7A80B"><enum>271.</enum><header>Five-year phaseout of certain tax expenditures</header> <subsection id="H3D5215346DD84CCAB1C7C9970E9F3824"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Effective for taxable years beginning after December 31, 2012, the amount allowable as a credit, exclusion from gross income, exemption from taxation, or deduction for the taxable year under the tax provisions specified in subsection (c) (determined without regard to this section) shall be reduced by the applicable percentage of the amount so allowable.</text> </subsection><subsection id="H9324B7176FE6470E86C9561D5CB84423"><enum>(b)</enum><header>Applicable percentage</header><text>For purposes if this section, the applicable percentage shall be determined in accordance with the following table:</text> <table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" table-template-name="Tax (No Calculation)" table-type="Leaderwork"> <tgroup cols="2" rowsep="0"><colspec coldef="txt" colname="column1" colwidth="275pts" min-data-value="55"></colspec><colspec align="justify" coldef="fig" colname="column2" colsep="0" colwidth="132.75pt" min-data-value="9"></colspec> <thead> <row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"><bold>In the case of taxable years <linebreak></linebreak> beginning in:</bold></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold>The applicable percentage shall be: </bold></entry> </row> </thead> <tbody> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2013</entry><entry align="right" colname="column2" rowsep="0">20</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2014</entry><entry align="right" colname="column2" rowsep="0">40</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2015</entry><entry align="right" colname="column2" rowsep="0">60</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2016</entry><entry align="right" colname="column2" rowsep="0">80</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2017 and thereafter</entry><entry align="right" colname="column2" rowsep="0">100.</entry> </row> </tbody> </tgroup> </table> </subsection><subsection id="H6332626953FF456ABC1BE267E7C7F8B0"><enum>(c)</enum><header>Specified provisions</header><text>For purposes of this section, the tax provisions specified in this subsection are as follows:</text> <paragraph id="HF30A3111C3964386B943AEB57CEFB73E"><enum>(1)</enum><text>Section 911 of the Internal Revenue Code of 1986 (relating to citizens or residents of the United States living abroad).</text> </paragraph><paragraph id="H8790BBA1A8A14F15A0C600E7E1687872"><enum>(2)</enum><text>Section 912 of such Code (relating to exemption for certain allowances).</text> </paragraph><paragraph id="H555AC9B513D743E995496B3FFC31364F"><enum>(3)</enum><text>Section 41 of such Code (relating to credit for increasing research activities).</text> </paragraph><paragraph id="H28E4B100636C400C9CD39E77C617E4DE"><enum>(4)</enum><text>Section 631(c) of such Code (relating to disposal of coal or domestic iron ore with a retained economic interest).</text> </paragraph><paragraph id="H6B8E9AEC429B49B5B7736EB46A7D3C12"><enum>(5)</enum><text>Section 451(i) of such Code (relating to special rule for sales or dispositions to implement Federal Energy Regulatory Commission or State Electric Restructuring Policy).</text> </paragraph><paragraph id="HB403B8EBFDB14D3CAD71266177EE41F9"><enum>(6)</enum><text>Section 613 of such Code (relating to percentage depletion) in the case of nonfuel minerals.</text> </paragraph><paragraph id="H2A6B974EFE784FFD8916A89BDAB3E8C4"><enum>(7)</enum><text>Section 631(a) of such Code (relating to election to consider cutting as sale or exchange).</text> </paragraph><paragraph id="HA9A1CC7760434E918E5400522DC24B23"><enum>(8)</enum><text>Section 512(b)(19) of such Code (relating to treatment of gain or loss on sale or exchange of certain brownfield sites).</text> </paragraph><paragraph id="H4F4A139A4A874130B58A2C2CC7562ECA"><enum>(9)</enum><text>Section 501(c)(14) of such Code (relating to credit unions without capital stock organized and operated for mutual purposes and without profit) and section 122 of the Federal Credit Union Act.</text> </paragraph><paragraph id="H78F8756B7D474B859E1CB1D50F8D7FFE"><enum>(10)</enum><text>The exclusion from gross income of income on life insurance contracts (as determined under section 7702(g) of the Internal Revenue Code of 1986).</text> </paragraph><paragraph id="HB64500D27C384F3A8DC91C5DA732DF7E"><enum>(11)</enum><text>Section 103(a) of such Code, to the extent the interest is attributable to a qualified mortgage bond (as defined in section 143(a) of such Code), a qualified veterans’ mortgage bond (as defined is section 143(b) of such Code), or an issue described in section 142(a)(7) of such Code.</text> </paragraph><paragraph id="H2C7FAB9350314089B00E091FCF1F4369"><enum>(12)</enum><text>Section 199 of such Code (relating to include attributable to domestic production activities).</text> </paragraph><paragraph id="HCF36BF4F0F8943EBA285ED3F349E2F0A"><enum>(13)</enum><text>Section 181 of such Code (relating to treatment of certain qualified film and television productions).</text> </paragraph><paragraph id="H429AF1C9C529453D83BB73D98E6573F0"><enum>(14)</enum><text>Section 7518 of such Code (relating to tax incentives relating to merchant marine capital construction funds) and chapter 535 of title 46, United States Code.</text> </paragraph><paragraph id="H626971A81CF54B76B72BECF0420CDE15"><enum>(15)</enum><text>Section 132(a)(5) of such Code (relating to qualified transportation fringe) to the extent attributable to a transit pass (as defined in section 132(f)(5) of such Code) or qualified parking (as so defined).</text> </paragraph><paragraph id="HED1E1A8315634063A7D4D60F43CF979B"><enum>(16)</enum><text>Section 45G(a) of such Code (relating to railroad track maintenance credit).</text> </paragraph><paragraph id="HE611CBAF7444406E9847BACDBCD9085E"><enum>(17)</enum><text>Section 46(a) of such Code (relating to rehabilitation credit).</text> </paragraph><paragraph id="HB5D7A9C3986246F1B6CBEF687E97D858"><enum>(18)</enum><text>Section 45D of such Code (relating to new markets tax credit).</text> </paragraph><paragraph id="H185D92BB4DD44972A5D14D16DE495A77"><enum>(19)</enum><text>Section 131 of such Code (relating to certain foster care payments).</text> </paragraph><paragraph id="H05D23E8DE5424ACE893CF2649991E548"><enum>(20)</enum><text>Section 213 of such Code (relating to medical, dental, etc., payments).</text> </paragraph><paragraph id="HA661A7D4E50142F8AA77A3BBF30901B8"><enum>(21)</enum><text>Section 36B of such Code (relating to refundable credit for coverage under a qualified health plan).</text> </paragraph><paragraph id="HF885766EA5954939AF60970D9C4A631F"><enum>(22)</enum><text>Section 45R of such Code (relating to employee health insurance expenses of small employers).</text> </paragraph><paragraph id="H456EADC968C243A7B47DC64035E6F4F9"><enum>(23)</enum><text>Section 45C of such Code (relating to clinical testing expenses for certain drugs for rare diseases or conditions).</text> </paragraph><paragraph id="HF89C13D5930C482392AA009361C1CC8D"><enum>(24)</enum><text display-inline="yes-display-inline">Section 35 of such Code (relating to health insurance costs of eligible individuals).</text> </paragraph><paragraph id="H4A8963EA2E6C4A7C8C316F534C169F40"><enum>(25)</enum><text display-inline="yes-display-inline">Means-tested payments otherwise excludable under the general welfare doctrine.</text> </paragraph><paragraph id="H7F1C3EF12D4C44159EEECB20F42858D7"><enum>(26)</enum><text display-inline="yes-display-inline">Section 79 of such Code (relating to group-term life insurance purchased for employees).</text> </paragraph><paragraph id="H3E10C2308C1146D0837E8C5DEEA22C56"><enum>(27)</enum><text display-inline="yes-display-inline">Section 106 of such Code (relating to contributions by employer to accident and health plans) to the extent attributable to employer provided coverage under an accident or disability insurance plan.</text> </paragraph><paragraph id="H9A78D8502A774334A0B763BA973D13C8"><enum>(28)</enum><text display-inline="yes-display-inline">Section 165 of such Code (relating to losses) to the extent the loss is described in section 165(c)(3) of such Code.</text> </paragraph><paragraph id="H00A4456846EF435994A8F77D5D80957E"><enum>(29)</enum><text display-inline="yes-display-inline">Section 164(a)(1) of such Code (relating to real property taxes) to the extent not attributable to real property used in a trade or business or the principal residence of the taxpayer (within the meaning of section 121 of such Code).</text> </paragraph></subsection></section></subtitle><subtitle id="H0AC2942BC46C419C9AA307DC9DCA7493"><enum>D</enum><header>Special Status</header> <section id="H9EFA7F9E83D3402294EB3D1C3829F483"><enum>381.</enum><header>Termination of qualified energy conservation bonds</header><text display-inline="no-display-inline">Subsection (a) of section 54D is amended by striking <quote>and</quote> at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H929F5DC7EF974E93B13367103E06DAF1" style="OLC"> <paragraph id="H9ED36274CB66466385ACBD50709630D4"><enum>(4)</enum><text display-inline="yes-display-inline">the bond is issued before the date of the enactment of the Implementation of Simpson-Bowles Spending Reductions Act of 2012.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H5D1E1F205C23466C857C95DFAB29497D"><enum>382.</enum><header>Termination of new clean renewable energy bonds</header><text display-inline="no-display-inline">Subsection (a) of section 54C is amended by striking <quote>and</quote> at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H71E67A4DD4EC4214AADD63E297383D75" style="OLC"> <paragraph id="H1D951433BB264F5CA6C3C8F41779B3F7"><enum>(4)</enum><text display-inline="yes-display-inline">the bond is issued before the date of the enactment of the Implementation of Simpson-Bowles Spending Reductions Act of 2012.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H4CC4298719AB46E291A88BCFB79578CD"><enum>383.</enum><header>Termination of exempt facility bond treatment for water, sewage, and solid waste facilities</header> <subsection id="HC584E0C38A3A47C184D28E76813025FC"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subsection (a) of section 142 is amended by striking paragraphs (4), (5), and (6).</text> </subsection><subsection id="HA2A66C62C5224EEC893F8977DDFC53B7"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to bonds issued after the date of the enactment of this Act.</text> </subsection></section><section id="H6D79DDDC04124F01B943B235B4606B65"><enum>384.</enum><header>Termination of expensing and amortization of reforestation expenditures and expensing of timber-growing costs</header> <subsection id="H0E25D6977FCF4C8DA1B5499BA20E69C7"><enum>(a)</enum><header>Reforestation expenditures</header><text display-inline="yes-display-inline">Section 194 is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H049196178F1F4E2E9D8E4083D4F88DBD" style="OLC"> <subsection id="HA290A651342047658493CD70A9E679CB"><enum>(e)</enum><header>Termination</header><text display-inline="yes-display-inline">This section shall not apply to amount paid or incurred after the date of the enactment of the Implementation of Simpson-Bowles Spending Reductions Act of 2012.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H81D7AD2FF1CD4C4DB2693BA6B811AE79"><enum>(b)</enum><header>Expensing of timber growing costs</header><text>Subsection (c) of section 263A is amended by striking paragraph (5).</text> </subsection><subsection id="H2232FB5945EF4889B48302DC5463E386"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall apply to expenses paid or incurred after the date of the enactment of this Act.</text> </subsection></section><section id="H84DE8B92D8144110B5B2F9BA5CC511C7"><enum>385.</enum><header>Termination of deferral of gain on sales of stock in agricultural refiners and processors to eligible farm cooperatives</header><text display-inline="no-display-inline">Subsection (g) of section 1042 is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HF2189F7489A04DF2860C6B91724A8E48" style="OLC"> <paragraph id="H923B627816CD4BD89366DABB7AC04106"><enum>(5)</enum><header>Termination</header><text display-inline="yes-display-inline">This subsection shall not apply to any sales after the date of the enactment of the Implementation of Simpson-Bowles Spending Reductions Act of 2012.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H1EAD87358183427FA7FB796724158B7A"><enum>386.</enum><header>Termination of election to expense certain depreciable business assets</header> <subsection id="H9ED469D6C4B347D3900C50CB16CDCE30"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subparagraph (D) of section 179(b)(1) is amended by striking <quote>$25,000</quote> and inserting <quote>$0</quote>.</text> </subsection><subsection id="HB644A09FA98B4C8697833A4B6C53E9C5"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to property placed in service after December 31, 2012.</text> </subsection></section><section id="H37039943CE5843BF8C7F041354266FE5"><enum>387.</enum><header>Termination of qualified small issue bonds</header><text display-inline="no-display-inline">Paragraph (1) of section 144(a) is amended by inserting <quote>before the date of the enactment of the Implementation of Simpson-Bowles Spending Reductions Act of 2012</quote> after <quote>any bond issued</quote>.</text> </section><section id="HC22EE0DFF24C481ABDEAB9DB2C4B407A"><enum>388.</enum><header>Termination of exempt facility bond treatment for qualified highway or surface freight transfer facilities</header> <subsection id="H244DBF6BDC77453198140A40E9A0A897"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subsection (a) of section 142 is amended by striking paragraph (15).</text> </subsection><subsection id="H02406D25818E4707A5086CBAA1718865"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to bonds issued after the date of the enactment of this Act.</text> </subsection></section><section id="HFFCB764D45A2448A92D75FC3F05A1AA3"><enum>389.</enum><header>Termination of exempt facility bond treatment for airports, docks, and wharves</header> <subsection id="H90D43CF4D1874CD481317A2DDBB1217F"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subsection (a) of section 142 is amended by striking paragraphs (1) and (2).</text> </subsection><subsection id="HEA5FB10328C840C78E022DC3A85DD7D2"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to bonds issued after the date of the enactment of this Act.</text> </subsection></section><section id="H0ECC66817FD34BA28D0B5BDA297EE295"><enum>390.</enum><header>Termination of tribal economic development bonds</header><text display-inline="no-display-inline">Subparagraph (A) of section 7871(f)(3) is amended by inserting <quote>before the date of the enactment of the Implementation of Simpson-Bowles Spending Reductions Act of 2012</quote> after <quote>any bond issued</quote>.</text> </section><section id="H6B49F06DFC6844B6B77239E2E64866B7"><enum>391.</enum><header>Termination of exclusion from gross income of United States savings bonds interest used to pay higher education expenses</header><text display-inline="no-display-inline">Subparagraph (A) of section 135(c)(1) is amended by inserting <quote>and before the date of the enactment of the Implementation of Simpson-Bowles Spending Reductions Act of 2012</quote> after <quote>December 31, 1989,</quote>.</text> </section><section id="HBA8F8F1E8A2D4817911CB44BA51AB3A3"><enum>392.</enum><header>Termination of qualified zone academy bonds</header><text display-inline="no-display-inline">Subsection (a) of section 54E is amended by striking <quote>and</quote> at the end of paragraph (2), by striking the period at the end of paragraph (3), and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HBD288B2114FA42B48471FF2E4CB5A383" style="OLC"> <paragraph id="HAEC755A135234A38B98D15EA12898AA9"><enum>(4)</enum><text display-inline="yes-display-inline">the bond is issued before the date of the enactment of the Implementation of Simpson-Bowles Spending Reductions Act of 2012.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H83935F6ED04A4650AA6A6311B62EF6E0"><enum>393.</enum><header>Termination of exempt facility bond treatment for qualified public educational facilities</header> <subsection id="H2AFD7786354F4B6EA50E6A4D322C279F"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subsection (a) of section 142 is amended by striking paragraph (13).</text> </subsection><subsection id="HC78DFEB7867E47D6B7F2F25F98D8BAA0"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to bonds issued after the date of the enactment of this Act.</text> </subsection></section><section id="H8E80272786DE420298D61017D197BF93"><enum>394.</enum><header>Termination of hospital bonds</header> <subsection id="HE5672D208AE241A88FD404BB63CB2923"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Paragraph (1) of section 145(a) is amended by striking <quote>or a governmental unit</quote> and inserting <quote>, or a governmental unit, other than a hospital</quote>.</text> </subsection><subsection id="H269194F9B4BA465899A61D3F41854B66"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="HEDC648F018E84A668D5EC40D3DCCED42"><enum>(1)</enum><text display-inline="yes-display-inline">Section 145 is amended by striking subsection (c) and by redesignating subsections (d) and (e) as subsections (c) and (d), respectively.</text> </paragraph><paragraph id="H7F1E3AC2AB0D40BCBB5E88E5215CDCA7"><enum>(2)</enum><text>Subsection (b) of section 145 is amended by striking <quote>nonhospital</quote> each place it appears.</text> </paragraph><paragraph id="H4585FA8DF66A490AB0871478319DF3A1"><enum>(3)</enum><text>Paragraph (1) of section 145(b) is amended by striking <quote>(other than a qualified hospital bond)</quote>.</text> </paragraph><paragraph id="H4270923903F040FD906C637C25CFCE46"><enum>(4)</enum><text>Paragraph (2) of section 145(b) is amended—</text> <subparagraph id="H60D15478B0334C71A634E160B9589D8E"><enum>(A)</enum><text>by striking <quote>other than a qualified hospital bond</quote> in subparagraph (B), and</text> </subparagraph><subparagraph id="H064898FF06E84A8CADBE4C7452F7B4F6"><enum>(B)</enum><text>by striking subparagraph (C).</text> </subparagraph></paragraph><paragraph id="H123F5E36D31944978F29329109C10F5C"><enum>(5)</enum><text>The heading for subsection (b) of section 145 is amended by striking <quote><header-in-text level="subsection" style="OLC">on bonds other than hospital bonds</header-in-text></quote>.</text> </paragraph><paragraph id="H6701DC1E8494447CB46333A6F79B56E7"><enum>(6)</enum><text>The heading for paragraph (2) of section 145(b) is amended by striking <quote><header-in-text level="paragraph" style="OLC">nonhospital</header-in-text></quote>.</text> </paragraph></subsection><subsection id="H368013DFB57B441E9DCF84F0A499A73A"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to bonds issued after the date of the enactment of this Act.</text> </subsection></section></subtitle>