1.
(a)This Act may be cited as the
Middle Class Tax Cut
Act
.
(b)Except as otherwise expressly provided,
whenever in this Act an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the reference shall
be considered to be made to a section or other provision of the Internal
Revenue Code of 1986.
(c)The table of contents of this Act is as
follows:
Sec. 1. Short title;
etc.
TITLE I—Temporary extension of tax relief
Sec. 101. Temporary extension of 2001 tax relief.
Sec. 102. Temporary extension of 2003 tax relief.
Sec. 103. Temporary extension of 2010 tax relief.
Sec. 104. Temporary extension of election to expense certain
depreciable business assets.
TITLE II—Alternative minimum tax relief
Sec. 201. Temporary extension of increased alternative minimum
tax exemption amount.
Sec. 202. Temporary extension of alternative minimum tax relief
for nonrefundable personal credits.
TITLE III—Budgetary effects
Sec. 301. Budgetary effects.
<enum>I</enum><header display-inline="yes-display-inline">Temporary extension of tax relief</header>
<section commented="no" display-inline="no-display-inline" id="idB662486A55484CE0B08E6115EA9DFE78" section-type="subsequent-section"><enum>101.</enum><header display-inline="yes-display-inline">Temporary extension of 2001 tax
relief</header>
<subsection commented="no" display-inline="no-display-inline" id="id36D592627FDC4E68BEB4B9E4233756B1"><enum>(a)</enum><header display-inline="yes-display-inline">Temporary extension</header>
<paragraph commented="no" display-inline="no-display-inline" id="id3F545528F3204C8EB0FECD752D6BADF4"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 901(a)(1) of the Economic Growth
and Tax Relief Reconciliation Act of 2001 is amended by striking
<quote>December 31, 2012</quote> and inserting <quote>December 31,
2013</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idDB85C8BE737C4F459CCE0477C3DC2093"><enum>(2)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this subsection shall take effect as if included in the enactment of the
Economic Growth and Tax Relief Reconciliation Act of 2001.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idCFD454276A804173911E3ADB50A4685C"><enum>(b)</enum><header display-inline="yes-display-inline">Application to certain high-Income
taxpayers</header>
<paragraph commented="no" display-inline="no-display-inline" id="id7C25F2135CB44CC9883C50D1A2FC22C9"><enum>(1)</enum><header display-inline="yes-display-inline">Income tax rates</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id3C32739C03D246A1818F48D81CBF2F94"><enum>(A)</enum><header display-inline="yes-display-inline">Treatment of 25- and 28-percent rate
brackets</header><text display-inline="yes-display-inline">Paragraph (2) of
section 1(i) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id3E2B3F79D15F4437AADB4814E88ED9B6" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id76EF39BF78E64A81B3A0216F19F06200"><enum>(2)</enum><header display-inline="yes-display-inline"><enum-in-header>25-</enum-in-header> and
28-percent rate brackets</header><text display-inline="yes-display-inline">The
tables under subsections (a), (b), (c), (d), and (e) shall be applied—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idDEFE4C9CCAA244CA8F2E981E36BBB9DB"><enum>(A)</enum><text display-inline="yes-display-inline">by substituting <quote>25%</quote> for
<quote>28%</quote> each place it appears (before the application of
subparagraph (B)), and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id8CCD8FCA67024966BB583C245A1AAF69"><enum>(B)</enum><text display-inline="yes-display-inline">by substituting <quote>28%</quote> for
<quote>31%</quote> each place it
appears.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id9D81B5A6EEBC4F00A05ED5B5F3A337EF"><enum>(B)</enum><header display-inline="yes-display-inline">33-percent rate bracket</header><text display-inline="yes-display-inline">Subsection (i) of section 1 is amended by
redesignating paragraph (3) as paragraph (4) and by inserting after paragraph
(2) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id13520BB09225420A8C15AA7C80CCA10C" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id80985E62490B449DA8C07CF3404BCB0D"><enum>(3)</enum><header display-inline="yes-display-inline">33-percent rate bracket</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id7068264F1A7642539A79394904599F33"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In the case of taxable years beginning
after December 31, 2012—</text>
<clause commented="no" display-inline="no-display-inline" id="id6C8F52E6CCBB4CBB890A9036F9C72FE8"><enum>(i)</enum><text display-inline="yes-display-inline">the rate of tax under subsections (a), (b),
(c), and (d) on a taxpayer's taxable income in the fourth rate bracket shall be
33 percent to the extent such income does not exceed an amount equal to the
excess of—</text>
<subclause commented="no" display-inline="no-display-inline" id="id8379E95979B74BF29A17804946B0EFC6"><enum>(I)</enum><text display-inline="yes-display-inline">the applicable amount, over</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idBA4EF1ADE2CF42BC8F1AF695253D3565"><enum>(II)</enum><text display-inline="yes-display-inline">the dollar amount at which such bracket
begins, and</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="id337D0E4F0B04410C8434409D023F3417"><enum>(ii)</enum><text display-inline="yes-display-inline">the 36 percent rate of tax under such
subsections shall apply only to the taxpayer's taxable income in such bracket
in excess of the amount to which clause (i) applies.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id5CF462EFDF614D5C94456882B94EF702"><enum>(B)</enum><header display-inline="yes-display-inline">Applicable amount</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term
<quote>applicable amount</quote> means the excess of—</text>
<clause commented="no" display-inline="no-display-inline" id="id4124746AE6A64731BF424259D20E9407"><enum>(i)</enum><text display-inline="yes-display-inline">the applicable threshold, over</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id2E4D7B416A0E47DCA79CE8CE39BBD9B6"><enum>(ii)</enum><text display-inline="yes-display-inline">the sum of the following amounts in effect
for the taxable year:</text>
<subclause commented="no" display-inline="no-display-inline" id="id62835C9D46084808944EDAEACBE18158"><enum>(I)</enum><text display-inline="yes-display-inline">the basic standard deduction (within the
meaning of section 63(c)(2)), and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id7071F0D3464B4103B399DBDDE9AB33F9"><enum>(II)</enum><text display-inline="yes-display-inline">the exemption amount (within the meaning of
section 151(d)(1) (or, in the case of subsection (a), 2 such exemption
amounts).</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id536400643514493B89DD0D5CD8105CF3"><enum>(C)</enum><header display-inline="yes-display-inline">Applicable threshold</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term
<quote>applicable threshold</quote> means—</text>
<clause commented="no" display-inline="no-display-inline" id="id6C968CADAAB3474CA555A61F0F64B298"><enum>(i)</enum><text display-inline="yes-display-inline">$250,000 in the case of subsection
(a),</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id8B900DC55A3242B69EF6FE58D308C1A2"><enum>(ii)</enum><text display-inline="yes-display-inline">$225,000 in the case of subsection
(b),</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idD68F9BE571B64C79A5F01BF3ED350304"><enum>(iii)</enum><text display-inline="yes-display-inline">$200,000 in the case of subsections (c),
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idF71833535BF44300A365A37ADCB97FAD"><enum>(iv)</enum><text display-inline="yes-display-inline"><fraction>1/2</fraction> the amount
applicable under clause (i) (after adjustment, if any, under subparagraph (E))
in the case of subsection (d).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id24C8169030094C5390A27C8F46313145"><enum>(D)</enum><header display-inline="yes-display-inline">Fourth rate bracket</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term
<term>fourth rate bracket</term> means the bracket which would (determined
without regard to this paragraph) be the 36-percent rate bracket.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id4A8ED94B1D344BAF9F9EDD53B3578DA5"><enum>(E)</enum><header display-inline="yes-display-inline">Inflation adjustment</header><text display-inline="yes-display-inline">For purposes of this paragraph, with
respect to taxable years beginning in calendar years after 2012, each of the
dollar amounts under clauses (i), (ii), and (iii) of subparagraph (C) shall be
adjusted in the same manner as under paragraph (1)(C), except that subsection
(f)(3)(B) shall be applied by substituting <quote>2008</quote> for
<quote>1992</quote>.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idAED69E2EA64947898FF1E59C331602EF"><enum>(2)</enum><header display-inline="yes-display-inline">Phaseout of personal exemptions and
itemized deductions</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id67F3DA8C53174B47BA213E3464069BBD"><enum>(A)</enum><header display-inline="yes-display-inline">Overall limitation on itemized
deductions</header><text display-inline="yes-display-inline">Section 68 is
amended—</text>
<clause commented="no" display-inline="no-display-inline" id="idC18BD7A7C2354D27930B4852839941BA"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>the applicable
amount</quote> the first place it appears in subsection (a) and inserting
<quote>the applicable threshold in effect under section 1(i)(3)</quote>,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id589CBAAE0B4D469AA9C45E0716745AC5"><enum>(ii)</enum><text display-inline="yes-display-inline">by striking <quote>the applicable
amount</quote> in subsection (a)(1) and inserting <quote>such applicable
threshold</quote>,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idB97C5673CFE24ED08EE00FF9D154B63C"><enum>(iii)</enum><text display-inline="yes-display-inline">by striking subsection (b) and
redesignating subsections (c), (d), and (e) as subsections (b), (c), and (d),
respectively, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id5AFA9F171061471B9C554250B496EDC2"><enum>(iv)</enum><text display-inline="yes-display-inline">by striking subsections (f) and (g).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id1A3781D7E9DA4FE0B1C2ED23C480DC8C"><enum>(B)</enum><header display-inline="yes-display-inline">Phaseout of deductions for personal
exemptions</header>
<clause commented="no" display-inline="no-display-inline" id="id07C4F8AF6EFE4B52A388FA82513E83B3"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (3) of section 151(d) is
amended—</text>
<subclause commented="no" display-inline="no-display-inline" id="idEB31695C45A545D4816D73A885D9E392"><enum>(I)</enum><text display-inline="yes-display-inline">by striking <quote>the threshold
amount</quote> in subparagraphs (A) and (B) and inserting <quote>the applicable
threshold in effect under section 1(i)(3)</quote>,</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id19C09816F4FF47EEA09B36284229AE2E"><enum>(II)</enum><text display-inline="yes-display-inline">by striking subparagraph (C) and
redesignating subparagraph (D) as subparagraph (C), and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id54C5845CFFD74284BBACD17CD5813B37"><enum>(III)</enum><text display-inline="yes-display-inline">by striking subparagraphs (E) and
(F).</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="idC1C9F8388BE14D8FBE95B742BEF0972F"><enum>(ii)</enum><header display-inline="yes-display-inline">Conforming amendments</header><text display-inline="yes-display-inline">Paragraph (4) of section 151(d) is
amended—</text>
<subclause commented="no" display-inline="no-display-inline" id="idD739E2E353974B69986DA8030D0AFB85"><enum>(I)</enum><text display-inline="yes-display-inline">by striking subparagraph (B),</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id2FCD515ED47A4172BF6397716B3DD94C"><enum>(II)</enum><text display-inline="yes-display-inline">by redesignating clauses (i) and (ii) of
subparagraph (A) as subparagraphs (A) and (B), respectively, and by indenting
such subparagraphs (as so redesignated) accordingly, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idB03A3A92EC2149719610D0F3466CAF62"><enum>(III)</enum><text display-inline="yes-display-inline">by striking all that precedes <quote>in a
calendar year after 1989,</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id94B50C9D3F194D0692393E3EBF8CA745" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="idE5D7E7C611754E4695BBD3EBAE68C158"><enum>(4)</enum><header display-inline="yes-display-inline">Inflation adjustment</header><text display-inline="yes-display-inline">In the case of any taxable year
beginning</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subclause></clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id932D35D043194D159153C6199F0505C0"><enum>(c)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">Except as otherwise
provided, the amendments made by this section shall apply to taxable years
beginning after December 31, 2012.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id3CDBFE7015E44CCD822D26DB0AE83F49"><enum>(d)</enum><header display-inline="yes-display-inline">Application of EGTRRA sunset</header><text display-inline="yes-display-inline">Each amendment made by subsection (b) shall
be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act
of 2001 to the same extent and in the same manner as if such amendment was
included in title I of such Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id61F921B5F6EB4EED9F87EE15F20F6F4F" section-type="subsequent-section"><enum>102.</enum><header display-inline="yes-display-inline">Temporary extension of 2003 tax
relief</header>
<subsection commented="no" display-inline="no-display-inline" id="id4A73E54CCB9C4465840450D2B0BFA0C2"><enum>(a)</enum><header display-inline="yes-display-inline">Extension</header>
<paragraph commented="no" display-inline="no-display-inline" id="id159D4FA5369E4DBE92D220318CAF114B"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 303 of the Jobs and Growth Tax
Relief Reconciliation Act of 2003 is amended by striking <quote>December 31,
2012</quote> and inserting <quote>December 31, 2013</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idCC4DD5A809D94AF78C0526FF44093C79"><enum>(2)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this subsection shall take effect as if included in the enactment of the Jobs
and Growth Tax Relief Reconciliation Act of 2003.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idF59E3BA7352A4AF0866650CFC6308102"><enum>(b)</enum><header display-inline="yes-display-inline">20-Percent capital gains rate for certain
high income individuals</header>
<paragraph commented="no" display-inline="no-display-inline" id="id119C8664063F43BEA3E64AF1EC2DA9FA"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (1) of section 1(h) is amended by
striking subparagraph (C), by redesignating subparagraphs (D) and (E) as
subparagraphs (E) and (F) and by inserting after subparagraph (B) the following
new subparagraphs:</text>
<quoted-block display-inline="no-display-inline" id="id30FBBD65D9354019A0E47E834667567C" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="id0C11B5CC05564517A337D5C573F81A33"><enum>(C)</enum><text display-inline="yes-display-inline">15 percent of the lesser of—</text>
<clause commented="no" display-inline="no-display-inline" id="id656C14837C7B4325A4B14B2B846C169D"><enum>(i)</enum><text display-inline="yes-display-inline">so much of the adjusted net capital gain
(or, if less, taxable income) as exceeds the amount on which a tax is
determined under subparagraph (B), or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idD4BC7104109941AB86357CAB93ECDD4B"><enum>(ii)</enum><text display-inline="yes-display-inline">the excess (if any) of—</text>
<subclause commented="no" display-inline="no-display-inline" id="id79F9B84E3D9149F38748BFC7953210D6"><enum>(I)</enum><text display-inline="yes-display-inline">the amount of taxable income which would
(without regard to this paragraph) be taxed at a rate below 36 percent,
over</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idA17B0C08746C4B4F870700A963E3D70E"><enum>(II)</enum><text display-inline="yes-display-inline">the sum of the amounts on which a tax is
determined under subparagraphs (A) and (B),</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idBA2FCFF8FB7046138F7B4F5493299677"><enum>(D)</enum><text display-inline="yes-display-inline">20 percent of the adjusted net capital gain
(or, if less, taxable income) in excess of the sum of the amounts on which tax
is determined under subparagraphs (B) and
(C),</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1601DBE558634623944235927AA724CB"><enum>(2)</enum><header display-inline="yes-display-inline">Minimum tax</header><text display-inline="yes-display-inline">Paragraph (3) of section 55(b) is amended
by striking subparagraph (C), by redesignating subparagraph (D) as subparagraph
(E), and by inserting after subparagraph (B) the following new
subparagraphs:</text>
<quoted-block display-inline="no-display-inline" id="id4ED5F8C3013546838C55C5B8787A4689" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="id36A31EEB95FC40D2AFF796FC722E62C0"><enum>(C)</enum><text display-inline="yes-display-inline">15 percent of the lesser of—</text>
<clause commented="no" display-inline="no-display-inline" id="id2CC2EC7B3B8F4FCE866A046E5683D379"><enum>(i)</enum><text display-inline="yes-display-inline">so much of the adjusted net capital gain
(or, if less, taxable excess) as exceeds the amount on which tax is determined
under subparagraph (B), or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idFBDC8FCDBDA2425D84E74CEC5F73E078"><enum>(ii)</enum><text display-inline="yes-display-inline">the excess described in section
1(h)(1)(C)(ii), plus</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC2E9AF9223F944F184406B320CF50873"><enum>(D)</enum><text display-inline="yes-display-inline">20 percent of the adjusted net capital gain
(or, if less, taxable excess) in excess of the sum of the amounts on which tax
is determined under subparagraphs (B) and (C),
plus</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id0746615B9EF548BEAE42372656907211"><enum>(c)</enum><header display-inline="yes-display-inline">Conforming amendments</header>
<paragraph commented="no" display-inline="no-display-inline" id="id687d9840f65244e1a90962d31e5eaae0"><enum>(1)</enum><text display-inline="yes-display-inline">The following provisions are each amended
by striking <quote>15 percent</quote> and inserting <quote>20
percent</quote>:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idb37e7637090a49219110501649d66f84"><enum>(A)</enum><text display-inline="yes-display-inline">Section 531.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="iddf4bc99c80d34c4d89506d893fd6dd4f"><enum>(B)</enum><text display-inline="yes-display-inline">Section 541.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id499904369e184c858c15fcad3fafaed8"><enum>(C)</enum><text display-inline="yes-display-inline">Section 1445(e)(1).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id7c20d24ca47e4d79aabb4d4e94135c80"><enum>(D)</enum><text display-inline="yes-display-inline">The second sentence of section
7518(g)(6)(A).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id84b23225ab9049ae9cd9808ef3c4ff88"><enum>(E)</enum><text display-inline="yes-display-inline">Section 53511(f)(2) of title 46, United
States Code.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idFF0792286BE642AE933F2779925A6BED"><enum>(2)</enum><text display-inline="yes-display-inline">Sections 1(h)(1)(B) and 55(b)(3)(B) are
each amended by striking <quote>5 percent (0 percent in the case of taxable
years beginning after 2007)</quote> and inserting <quote>0
percent</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9368450AA6A349C3AF3E9BD5D8D3120E"><enum>(3)</enum><text display-inline="yes-display-inline">Section 1445(e)(6) is amended by striking
<quote>15 percent (20 percent in the case of taxable years beginning after
December 31, 2010)</quote> and inserting <quote>20 percent</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id6D30425540524A789FF9B04B559E2A78"><enum>(d)</enum><header display-inline="yes-display-inline">Effective dates</header>
<paragraph commented="no" display-inline="no-display-inline" id="id727E67136BDB443ABACB0E12BD6DE525"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as otherwise provided, the
amendments made by subsections (b) and (c) shall apply to taxable years
beginning after December 31, 2012.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id02D07BF6B1E245ED96A5EC4E09D0BFA0"><enum>(2)</enum><header display-inline="yes-display-inline">Withholding</header><text display-inline="yes-display-inline">The amendments made by paragraphs (1)(C)
and (3) of subsection (c) shall apply to amounts paid on or after January 1,
2013.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id6B6D6B4EF63D4C7D95A1222FECACE3B5"><enum>(e)</enum><header display-inline="yes-display-inline">Application of JGTRRA sunset</header><text display-inline="yes-display-inline">Each amendment made by subsections (b) and
(c) shall be subject to section 303 of the Jobs and Growth Tax Relief
Reconciliation Act of 2003 to the same extent and in the same manner as if such
amendment was included in title III of such Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id4B1369A02291478CA31EBF0497F5F2AC" section-type="subsequent-section"><enum>103.</enum><header display-inline="yes-display-inline">Temporary extension of 2010 tax
relief</header>
<subsection commented="no" display-inline="no-display-inline" id="id2DDCF731789547E8BDB7BDF35016E18F"><enum>(a)</enum><header display-inline="yes-display-inline">American Opportunity Tax Credit</header>
<paragraph commented="no" display-inline="no-display-inline" id="id3CA17F9838414C4F9026B67F7525EE8B"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 25A(i) is amended by striking
<quote>or 2012</quote> and inserting <quote>2012, or 2013</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1AB744F425C24C32A8B6E1F4041CED64"><enum>(2)</enum><header display-inline="yes-display-inline">Treatment of possessions</header><text display-inline="yes-display-inline">Section 1004(c)(1) of division B of the
American Recovery and Reinvestment Tax Act of 2009 is amended by striking
<quote>and 2012</quote> each place it appears and inserting <quote>2012, and
2013</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idE1CEB76319A3433A9BE12FD8B092A32B"><enum>(b)</enum><header display-inline="yes-display-inline">Child tax credit</header><text display-inline="yes-display-inline">Section 24(d)(4) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id419128A61CE549BEA9E5209E0317BA3E"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="paragraph" style="OLC">and</header-in-text> 2012</quote> in the heading
and inserting <quote>2012,<header-in-text level="paragraph" style="OLC">
and</header-in-text> 2013</quote>, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idCCBE61B373474A65A7BE3902D239D836"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>or 2012</quote> and
inserting <quote>2012, or 2013</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id4EAFE6E6F21C47628EDC01CAB97987C7"><enum>(c)</enum><header display-inline="yes-display-inline">Earned income tax credit</header><text display-inline="yes-display-inline">Section 32(b)(3) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id2B3787E4B4E94003AB7B977562696642"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="paragraph" style="OLC">and</header-in-text> 2012</quote> in the heading
and inserting <quote>2012,<header-in-text level="paragraph" style="OLC">
and</header-in-text> 2013</quote>, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idCCFD2F8ABB0747379195CB8290080587"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>or 2012</quote> and
inserting <quote>2012, or 2013</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idB633A7F8B94343B0A3724D730EE10994"><enum>(d)</enum><header display-inline="yes-display-inline">Temporary extension of rule disregarding
refunds in the administration of Federal programs and Federally assisted
programs</header><text display-inline="yes-display-inline">Subsection (b) of
section 6409 is amended by striking <quote>December 31, 2012</quote> and
inserting <quote>December 31, 2013</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id0EFD368329C44291A51E7BAAE6D4E5FA"><enum>(e)</enum><header display-inline="yes-display-inline">Effective dates</header>
<paragraph commented="no" display-inline="no-display-inline" id="idFE87CD81D4EB49A991DD54BFF7E6DBCD"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years beginning after
December 31, 2012.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id69172FA639954F64AAE883E221E71699"><enum>(2)</enum><header display-inline="yes-display-inline">Rule disregarding refunds in the
administration of certain programs</header><text display-inline="yes-display-inline">The amendment made by subsection (d) shall
apply to amounts received after December 31, 2012.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id2D00D3B852A74AA59C51FD69D1CA48C3" section-type="subsequent-section"><enum>104.</enum><header display-inline="yes-display-inline">Temporary extension of election to expense
certain depreciable business assets</header>
<subsection commented="no" display-inline="no-display-inline" id="id1984E2F68E3049C8A1341FE82A907301"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header>
<paragraph commented="no" display-inline="no-display-inline" id="idB6F54EFC90864DEC97145FDABDF603EA"><enum>(1)</enum><header display-inline="yes-display-inline">Dollar limitation</header><text display-inline="yes-display-inline">Section 179(b)(1) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idE44A103088224E45A8357CA6D7163A1C"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>and</quote> at the end
of subparagraph (C),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF01522EB9FE340B892102D4291EDD237"><enum>(B)</enum><text display-inline="yes-display-inline">by redesignating subparagraph (D) as
subparagraph (E),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id1817CDD228C94AB8816A5E3D9930BCA9"><enum>(C)</enum><text display-inline="yes-display-inline">by inserting after subparagraph (C) the
following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="idE6E2EF67D1754EEC849D4A40561D6290" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="id5566BB798E9047A5A120B349DB99AD49"><enum>(D)</enum><text display-inline="yes-display-inline">$250,000 in the case of taxable years
beginning in 2013, and</text>
</subparagraph><after-quoted-block>,
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id9D3C69FCDC944F97929BA64B8966B2C8"><enum>(D)</enum><text display-inline="yes-display-inline">in subparagraph (E), as so redesignated, by
striking <quote>2012</quote> and inserting <quote>2013</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id184AA307101B4BD8A6187E33F51DC1EB"><enum>(2)</enum><header display-inline="yes-display-inline">Reduction in limitation</header><text display-inline="yes-display-inline">Section 179(b)(2) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idD33A3C5596F0458FBED2AC47A2AE3A67"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>and</quote> at the end
of subparagraph (C),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idBA03064B9D7A4DBDB843ACF33CE03ED9"><enum>(B)</enum><text display-inline="yes-display-inline">by redesignating subparagraph (D) as
subparagraph (E),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id850C99F8B7574FAF99172CFFF9ABDE80"><enum>(C)</enum><text display-inline="yes-display-inline">by inserting after subparagraph (C) the
following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="id06EBFE68DE964675ACAF13FD64AB7E21" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="idC4994345E55D4D1D85B1EFFA8D576FAB"><enum>(D)</enum><text display-inline="yes-display-inline">$800,000 in the case of taxable years
beginning in 2013, and</text>
</subparagraph><after-quoted-block>,
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB110EB35AF2D466896EC3377414E2FC2"><enum>(D)</enum><text display-inline="yes-display-inline">in subparagraph (E), as so redesignated, by
striking <quote>2012</quote> and inserting <quote>2013</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idA2923FC914214062B3152258D42AEE6C"><enum>(b)</enum><header display-inline="yes-display-inline">Computer software</header><text display-inline="yes-display-inline">Section 179(d)(1)(A)(ii) is amended by
striking <quote>2013</quote> and inserting <quote>2014</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idA4061141549C49C595F0EE0CC02F7B20"><enum>(c)</enum><header display-inline="yes-display-inline">Election</header><text display-inline="yes-display-inline">Section 179(c)(2) is amended by striking
<quote>2013</quote> and inserting <quote>2014</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id2C78E3463276463C9353A992AE3A9150"><enum>(d)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to taxable years beginning after December 31,
2012.</text>
</subsection></section><enum>II</enum><header display-inline="yes-display-inline">Alternative minimum tax relief</header>
<section commented="no" display-inline="no-display-inline" id="id236037A6A4654F0985F24B27E353249E" section-type="subsequent-section"><enum>201.</enum><header display-inline="yes-display-inline">Temporary extension of increased
alternative minimum tax exemption amount</header>
<subsection commented="no" display-inline="no-display-inline" id="id7EA17923A1BA40D89B3FB2AA3EF7B5C1"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (1) of section 55(d) is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HAF91B01B4DE6433EBDDE6CD6E82FEBC7"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>$72,450</quote> and all
that follows through <quote>2011</quote> in subparagraph (A) and inserting
<quote>$78,750 in the case of taxable years beginning in 2012</quote>,
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id7DB682A5102D4871A6B7DD204BAC519D"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>$47,450</quote> and all
that follows through <quote>2011</quote> in subparagraph (B) and inserting
<quote>$50,600 in the case of taxable years beginning in 2012</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id0C9DB097D6FF4A3786DF6C57E5840FA4"><enum>(b)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to taxable years beginning after December 31,
2011.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id31804E85AB234608876C0D7392EA746D" section-type="subsequent-section"><enum>202.</enum><header display-inline="yes-display-inline">Temporary extension of alternative minimum
tax relief for nonrefundable personal credits</header>
<subsection commented="no" display-inline="no-display-inline" id="id9DE539AA6AF74E9C8F4D4E9A9215B11F"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (2) of section 26(a) is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id51619AD1FFDB4722A1DA235800511F23"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>or 2011</quote> and
inserting <quote>2011, or 2012</quote>, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9033BFC177C746D09D9EB364C89285C8"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="paragraph" style="OLC">2011</header-in-text></quote> in the heading
thereof and inserting <quote><header-in-text level="paragraph" style="OLC">2012</header-in-text></quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id21E280511FE74D2F9CB27381FBB94714"><enum>(b)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to taxable years beginning after December 31,
2011.</text>
</subsection></section><enum>III</enum><header display-inline="yes-display-inline">Budgetary effects</header>
<section commented="no" display-inline="no-display-inline" id="idcea7f3dbaf8d4bc8825e1785b7d94c51" section-type="subsequent-section"><enum>301.</enum><header display-inline="yes-display-inline">Budgetary effects</header>
<subsection commented="no" display-inline="no-display-inline" id="idb64449648b804cf998aea1cee8f94b22"><enum>(a)</enum><header display-inline="yes-display-inline">PAYGO Scorecard</header><text display-inline="yes-display-inline">The budgetary effects of this Act shall not
be entered on either PAYGO scorecard maintained pursuant to section 4(d) of the
Statutory Pay-As-You-Go Act of 2010.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id5532a08edea5401ba68dc6d7e4c7f65e"><enum>(b)</enum><header display-inline="yes-display-inline">Senate PAYGO Scorecard</header><text display-inline="yes-display-inline">The budgetary effects of this Act shall not
be entered on any PAYGO scorecard maintained for purposes of section 201 of S.
Con. Res. 21 (110th Congress).</text>
</subsection></section>
Passed the Senate
July 25, 2012.
Secretary