II Calendar No. 468 112th CONGRESS 2d Session S. 3413 IN THE SENATE OF THE UNITED STATES July 19, 2012 Mr. Hatch (for himself and Mr. McConnell) introduced the following bill; which was read twice and ordered placed on the calendar A BILL To amend the Internal Revenue Code of 1986 to temporarily extend tax relief provisions enacted in 2001 and 2003, to provide for temporary alternative minimum tax relief, to extend increased expensing limitations, and to provide instructions for tax reform.

1.

Short title

This Act may be cited as the Tax Hike Prevention Act of 2012.

2.

Temporary extension of 2001 tax relief

(a)

In general

Section 901 of the Economic Growth and Tax Relief Reconciliation Act of 2001 is amended by striking December 31, 2012 both places it appears and inserting December 31, 2013. (b)

Effective date

The amendment made by this section shall take effect as if included in the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001.

3.

Temporary extension of 2003 tax relief

(a)

In general

Section 303 of the Jobs and Growth Tax Relief Reconciliation Act of 2003 is amended by striking December 31, 2012 and inserting December 31, 2013. (b)

Effective date

The amendment made by this section shall take effect as if included in the enactment of the Jobs and Growth Tax Relief Reconciliation Act of 2003.

4.

Alternative minimum tax relief

(a)

Temporary extension of increased alternative minimum tax exemption amount

(1)

In general

Paragraph (1) of section 55(d) of the Internal Revenue Code of 1986 is amended— (A)by striking $72,450 and all that follows through 2011 in subparagraph (A) and inserting $78,750 in the case of taxable years beginning in 2012 and $79,850 in the case of taxable years beginning in 2013, and (B)by striking $47,450 and all that follows through 2011 in subparagraph (B) and inserting $50,600 in the case of taxable years beginning in 2012 and $51,150 in the case of taxable years beginning in 2013. (b)

Temporary extension of alternative minimum tax relief for nonrefundable personal credits

(1)

In general

Paragraph (2) of section 26(a) of the Internal Revenue Code of 1986 is amended— (A)by striking or 2011 and inserting 2011, 2012, or 2013, and (B)by striking 2011 in the heading thereof and inserting 2013. (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2011.

5.

Extension of increased expensing limitations and treatment of certain real property as section 179 property

(a)

In general

(1)

Dollar limitation

Section 179(b)(1) of the Internal Revenue Code of 1986 is amended— (A)by striking 2010 or 2011, in subparagraph (B) and inserting 2010, 2011, 2012, or 2013, and, (B)by striking subparagraph (C), (C)by redesignating subparagraph (D) as subparagraph (C), and (D)in subparagraph (C), as so redesignated, by striking 2012 and inserting 2013. (2)

Reduction in limitation

Section 179(b)(2) of such Code is amended— (A)by striking 2010 or 2011, in subparagraph (B) and inserting 2010, 2011, 2012, or 2013, and, (B)by striking subparagraph (C), (C)by redesignating subparagraph (D) as subparagraph (C), and (D)in subparagraph (C), as so redesignated, by striking 2012 and inserting 2013. (3)

Conforming amendment

Subsection (b) of section 179 of such Code is amended by striking paragraph (6). (b)

Computer software

Section 179(d)(1)(A)(ii) of the Internal Revenue Code of 1986 is amended by striking 2013 and inserting 2014. (c)

Election

Section 179(c)(2) of the Internal Revenue Code of 1986 is amended by striking 2013 and inserting 2014. (d)

Special rules for treatment of qualified real property

(1)

In general

Section 179(f)(1) of the Internal Revenue Code of 1986 is amended by striking 2010 or 2011 and inserting 2010, 2011, 2012, or 2013. (2)

Carryover limitation

(A)

In general

Section 179(f)(4) of such Code is amended by striking 2011 each place it appears and inserting 2013. (B)

Conforming amendment

The heading for subparagraph (C) of section 179(f)(4) of such Code is amended by striking 2010 and inserting 2010, 2011 and 2012. (e)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2011.

6.

Instructions for tax reform

(a)

In general

The Senate Committee on Finance shall report legislation not later than 12 months after the date of the enactment of this Act that consists of changes in laws within its jurisdiction which meet the requirements of subsection (b). (b)

Requirements

Legislation meets the requirements of this subsection if the legislation— (1)simplifies the Internal Revenue Code of 1986 by reducing the number of tax preferences and reducing individual tax rates proportionally, with the highest individual tax rate significantly below 35 percent; (2)permanently repeals the alternative minimum tax; (3)is projected, when compared to the current tax policy baseline, to be revenue neutral or result in revenue losses; (4)has a dynamic effect which is projected to stimulate economic growth and lead to increased revenue; (5)applies any increased revenue from stimulated economic growth to additional rate reductions and does not permit any such increased revenue to be used for additional Federal spending; (6)retains a progressive tax code; and (7)provides for revenue-neutral reform of the taxation of corporations and businesses by— (A)providing a top tax rate on corporations of no more than 25 percent; and (B)implementing a competitive territorial tax system.

July 19, 2012 Read twice and ordered placed on the calendar