[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 3521 Reported in Senate (RS)]

                                                       Calendar No. 499
112th CONGRESS
  2d Session
                                S. 3521

                          [Report No. 112-208]

 To amend the Internal Revenue Code of 1986 to extend certain expiring 
                              provisions.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            August 28, 2012

Mr. Baucus, from the Committee on Finance, reported, under authority of 
the order of the Senate of August 2, 2012, the following original bill; 
            which was read twice and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to extend certain expiring 
                              provisions.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; ETC.

    (a) Short Title.--This Act may be cited as the ``Family and 
Business Tax Cut Certainty Act of 2012''.
    (b) Amendment of 1986 Code.--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) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; etc.
                   TITLE I--INDIVIDUAL TAX PROVISIONS

               Subtitle A--Alternative Minimum Tax Relief

Sec. 101. Extension of increased alternative minimum tax exemption 
                            amount.
Sec. 102. Extension of alternative minimum tax relief for nonrefundable 
                            personal credits.
              Subtitle B--Other Individual Tax Provisions

Sec. 111. Extension of deduction for certain expenses of elementary and 
                            secondary school teachers.
Sec. 112. Extension of exclusion from gross income of discharge of 
                            qualified principal residence indebtedness.
Sec. 113. Extension of parity for exclusion from income for employer-
                            provided mass transit and parking benefits.
Sec. 114. Extension of mortgage insurance premiums treated as qualified 
                            residence interest.
Sec. 115. Extension of deduction of State and local general sales 
                            taxes.
Sec. 116. Extension of special rule for contributions of capital gain 
                            real property made for conservation 
                            purposes.
Sec. 117. Extension of above-the-line deduction for qualified tuition 
                            and related expenses.
Sec. 118. Extension of tax-free distributions from individual 
                            retirement plans for charitable purposes.
                     Subtitle C--Tax Administration

Sec. 121. Improve and make permanent the provision authorizing the 
                            Internal Revenue Service to disclose 
                            certain return and return information to 
                            certain prison officials.
Sec. 122. Extension of rule disregarding refunds in the administration 
                            of Federal programs and Federally assisted 
                            programs.
                    TITLE II--BUSINESS TAX EXTENDERS

Sec. 201. Extension and modification of research credit.
Sec. 202. Extension of temporary minimum low-income tax credit rate for 
                            non-federally subsidized new buildings.
Sec. 203. Extension of housing allowance exclusion for determining area 
                            median gross income for qualified 
                            residential rental project exempt facility 
                            bonds.
Sec. 204. Extension of Indian employment tax credit.
Sec. 205. Extension of new markets tax credit.
Sec. 206. Extension of railroad track maintenance credit.
Sec. 207. Extension of mine rescue team training credit.
Sec. 208. Extension of employer wage credit for employees who are 
                            active duty members of the uniformed 
                            services.
Sec. 209. Extension of work opportunity tax credit.
Sec. 210. Extension of qualified zone academy bonds.
Sec. 211. Extension of 15-year straight-line cost recovery for 
                            qualified leasehold improvements, qualified 
                            restaurant buildings and improvements, and 
                            qualified retail improvements.
Sec. 212. Extension of 7-year recovery period for motorsports 
                            entertainment complexes.
Sec. 213. Extension of accelerated depreciation for business property 
                            on an Indian reservation.
Sec. 214. Extension of enhanced charitable deduction for contributions 
                            of food inventory.
Sec. 215. Extension of increased expensing limitations and treatment of 
                            certain real property as section 179 
                            property.
Sec. 216. Extension of election to expense mine safety equipment.
Sec. 217. Extension of special expensing rules for certain film and 
                            television productions.
Sec. 218. Extension of deduction allowable with respect to income 
                            attributable to domestic production 
                            activities in Puerto Rico.
Sec. 219. Extension of modification of tax treatment of certain 
                            payments to controlling exempt 
                            organizations.
Sec. 220. Extension of treatment of certain dividends of regulated 
                            investment companies.
Sec. 221. Extension of RIC qualified investment entity treatment under 
                            FIRPTA.
Sec. 222. Extension of subpart F exception for active financing income.
Sec. 223. Extension of look-thru treatment of payments between related 
                            controlled foreign corporations under 
                            foreign personal holding company rules.
Sec. 224. Extension of temporary exclusion of 100 percent of gain on 
                            certain small business stock.
Sec. 225. Extension of basis adjustment to stock of S corporations 
                            making charitable contributions of 
                            property.
Sec. 226. Extension of reduction in S-corporation recognition period 
                            for built-in gains tax.
Sec. 227. Extension of empowerment zone tax incentives.
Sec. 228. Extension of tax-exempt financing for New York Liberty Zone.
Sec. 229. Extension of temporary increase in limit on cover over of rum 
                            excise taxes to Puerto Rico and the Virgin 
                            Islands.
Sec. 230. Extension and limitation of American Samoa economic 
                            development credit.
                    TITLE III--ENERGY TAX EXTENDERS

Sec. 301. Extension of credit for energy-efficient existing homes.
Sec. 302. Extension of credit for alternative fuel vehicle refueling 
                            property.
Sec. 303. Extension of credit for 2- or 3-wheeled plug-in electric 
                            vehicles.
Sec. 304. Extension and modification of cellulosic biofuel producer 
                            credit.
Sec. 305. Extension of incentives for biodiesel and renewable diesel.
Sec. 306. Extension of production credit for Indian coal facilities 
                            placed in service before 2009.
Sec. 307. Extension and modification of credits with respect to 
                            facilities producing energy from certain 
                            renewable resources.
Sec. 308. Extension of credit for energy-efficient new homes.
Sec. 309. Extension of credit for energy-efficient appliances.
Sec. 310. Extension and modification of special allowance for 
                            cellulosic biofuel plant property.
Sec. 311. Extension of special rule for sales or dispositions to 
                            implement FERC or State electric 
                            restructuring policy for qualified electric 
                            utilities.
Sec. 312. Extension of alternative fuels excise tax credits.
                       TITLE IV--OTHER PROVISIONS

Sec. 401. Sense of the Senate regarding tax reform.
                       TITLE V--BUDGET PROVISIONS

Sec. 501. PAYGO scorecard estimates.

                   TITLE I--INDIVIDUAL TAX PROVISIONS

               Subtitle A--Alternative Minimum Tax Relief

SEC. 101. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX EXEMPTION 
              AMOUNT.

    (a) In General.--Paragraph (1) of section 55(d) is amended--
            (1) 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
            (2) 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) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2011.

SEC. 102. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR NONREFUNDABLE 
              PERSONAL CREDITS.

    (a) In General.--Paragraph (2) of section 26(a) is amended--
            (1) by striking ``or 2011'' and inserting ``2011, 2012, or 
        2013'', and
            (2) by striking ``2011'' in the heading thereof and 
        inserting ``2013''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2011.

              Subtitle B--Other Individual Tax Provisions

SEC. 111. EXTENSION OF DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY AND 
              SECONDARY SCHOOL TEACHERS.

    (a) In General.--Subparagraph (D) of section 62(a)(2) is amended by 
striking ``or 2011'' and inserting ``2011, 2012, or 2013''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2011.

SEC. 112. EXTENSION OF EXCLUSION FROM GROSS INCOME OF DISCHARGE OF 
              QUALIFIED PRINCIPAL RESIDENCE INDEBTEDNESS.

    (a) In General.--Subparagraph (E) of section 108(a)(1) is amended 
by striking ``January 1, 2013'' and inserting ``January 1, 2014''.
    (b) Effective Date.--The amendment made by this section shall apply 
to indebtedness discharged after December 31, 2012.

SEC. 113. EXTENSION OF PARITY FOR EXCLUSION FROM INCOME FOR EMPLOYER-
              PROVIDED MASS TRANSIT AND PARKING BENEFITS.

    (a) In General.--Paragraph (2) of section 132(f) is amended by 
striking ``January 1, 2012'' and inserting ``January 1, 2014''.
    (b) Effective Date.--The amendment made by this section shall apply 
to months after December 31, 2011.

SEC. 114. EXTENSION OF MORTGAGE INSURANCE PREMIUMS TREATED AS QUALIFIED 
              RESIDENCE INTEREST.

    (a) In General.--Subclause (I) of section 163(h)(3)(E)(iv) is 
amended by striking ``December 31, 2011'' and inserting ``December 31, 
2013''.
    (b) Technical Amendments.--Clause (i) of section 163(h)(4)(E) is 
amended--
            (1) by striking ``Veterans Administration'' and inserting 
        ``Department of Veterans Affairs'', and
            (2) by striking ``Rural Housing Administration'' and 
        inserting ``Rural Housing Service''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or accrued after December 31, 2011.

SEC. 115. EXTENSION OF DEDUCTION OF STATE AND LOCAL GENERAL SALES 
              TAXES.

    (a) In General.--Subparagraph (I) of section 164(b)(5) is amended 
by striking ``January 1, 2012'' and inserting ``January 1, 2014''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2011.

SEC. 116. EXTENSION OF SPECIAL RULE FOR CONTRIBUTIONS OF CAPITAL GAIN 
              REAL PROPERTY MADE FOR CONSERVATION PURPOSES.

    (a) In General.--Clause (vi) of section 170(b)(1)(E) is amended by 
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
    (b) Contributions by Certain Corporate Farmers and Ranchers.--
Clause (iii) of section 170(b)(2)(B) is amended by striking ``December 
31, 2011'' and inserting ``December 31, 2013''.
    (c) Effective Date.--The amendments made by this section shall 
apply to contributions made in taxable years beginning after December 
31, 2011.

SEC. 117. EXTENSION OF ABOVE-THE-LINE DEDUCTION FOR QUALIFIED TUITION 
              AND RELATED EXPENSES.

    (a) In General.--Subsection (e) of section 222 is amended by 
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2011.

SEC. 118. EXTENSION OF TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL 
              RETIREMENT PLANS FOR CHARITABLE PURPOSES.

    (a) In General.--Subparagraph (F) of section 408(d)(8) is amended 
by striking ``December 31, 2011'' and inserting ``December 31, 2013''.
    (b) Effective Date.--The amendment made by this section shall apply 
to distributions made in taxable years beginning after December 31, 
2011.

                     Subtitle C--Tax Administration

SEC. 121. IMPROVE AND MAKE PERMANENT THE PROVISION AUTHORIZING THE 
              INTERNAL REVENUE SERVICE TO DISCLOSE CERTAIN RETURN AND 
              RETURN INFORMATION TO CERTAIN PRISON OFFICIALS.

    (a) In General.--Paragraph (10) of section 6103(k) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(10) Disclosure of certain returns and return information 
        to certain prison officials.--
                    ``(A) In general.--Under such procedures as the 
                Secretary may prescribe, the Secretary may disclose to 
                officers and employees of the Federal Bureau of Prisons 
                and of any State agency charged with the responsibility 
                for administration of prisons any returns or return 
                information with respect to individuals incarcerated in 
                Federal or State prison systems whom the Secretary has 
                determined may have filed or facilitated the filing of 
                a false or fraudulent return to the extent that the 
                Secretary determines that such disclosure is necessary 
                to permit effective Federal tax administration.
                    ``(B) Disclosure to contractor-run prisons.--Under 
                such procedures as the Secretary may prescribe, the 
                disclosures authorized by subparagraph (A) may be made 
                to contractors responsible for the operation of a 
                Federal or State prison on behalf of such Bureau or 
                agency.
                    ``(C) Restrictions on use of disclosed 
                information.--Any return or return information received 
                under this paragraph shall be used only for the 
                purposes of and to the extent necessary in taking 
                administrative action to prevent the filing of false 
                and fraudulent returns, including administrative 
                actions to address possible violations of 
                administrative rules and regulations of the prison 
                facility and in administrative and judicial proceedings 
                arising from such administrative actions.
                    ``(D) Restrictions on redisclosure and disclosure 
                to legal representatives.--Notwithstanding subsection 
                (h)--
                            ``(i) Restrictions on redisclosure.--Except 
                        as provided in clause (ii), any officer, 
                        employee, or contractor of the Federal Bureau 
                        of Prisons or of any State agency charged with 
                        the responsibility for administration of 
                        prisons shall not disclose any information 
                        obtained under this paragraph to any person 
                        other than an officer or employee or contractor 
                        of such Bureau or agency personally and 
                        directly engaged in the administration of 
                        prison facilities on behalf of such Bureau or 
                        agency.
                            ``(ii) Disclosure to legal 
                        representatives.--The returns and return 
                        information disclosed under this paragraph may 
                        be disclosed to the duly authorized legal 
                        representative of the Federal Bureau of 
                        Prisons, State agency, or contractor charged 
                        with the responsibility for administration of 
                        prisons, or of the incarcerated individual 
                        accused of filing the false or fraudulent 
                        return who is a party to an action or 
                        proceeding described in subparagraph (C), 
                        solely in preparation for, or for use in, such 
                        action or proceeding.''.
    (b) Conforming Amendments.--
            (1) Paragraph (3) of section 6103(a) of the Internal 
        Revenue Code of 1986 is amended by inserting ``subsection 
        (k)(10),'' after ``subsection (e)(1)(D)(iii),''.
            (2) Paragraph (4) of section 6103(p) of such Code is 
        amended--
                    (A) by inserting ``subsection (k)(10),'' before 
                ``subsection (l)(10),'' in the matter preceding 
                subparagraph (A),
                    (B) in subparagraph (F)(i)--
                            (i) by inserting ``(k)(10),'' before ``or 
                        (l)(6),'', and
                            (ii) by inserting ``subsection (k)(10) or'' 
                        before ``subsection (l)(10),'', and
                    (C) by inserting ``subsection (k)(10) or'' before 
                ``subsection (l)(10),'' both places it appears in the 
                matter following subparagraph (F)(iii).
            (3) Paragraph (2) of section 7213(a) of such Code is 
        amended by inserting ``(k)(10),'' before ``(l)(6),''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 122. EXTENSION OF RULE DISREGARDING REFUNDS IN THE ADMINISTRATION 
              OF FEDERAL PROGRAMS AND FEDERALLY ASSISTED PROGRAMS.

    (a) In General.--Subsection (b) of section 6409 is amended by 
striking ``December 31, 2012'' and inserting ``December 31, 2013''.
    (b) Effective Date.--The amendment made by this section shall apply 
to amounts received after December 31, 2012.

                    TITLE II--BUSINESS TAX EXTENDERS

SEC. 201. EXTENSION AND MODIFICATION OF RESEARCH CREDIT.

    (a) Extension.--
            (1) In general.--Subparagraph (B) of section 41(h)(1) is 
        amended by striking ``December 31, 2011'' and inserting 
        ``December 31, 2013''.
            (2) Conforming amendment.--Subparagraph (D) of section 
        45C(b)(1) is amended by striking ``December 31, 2011'' and 
        inserting ``December 31, 2013''.
    (b) Inclusion of Qualified Research Expenses and Gross Receipts of 
an Acquired Person.--
            (1) Partial inclusion of pre-acquisition qualified research 
        expenses and gross receipts.--Subparagraph (A) of section 
        41(f)(3) is amended to read as follows:
                    ``(A) Acquisitions.--
                            ``(i) In general.--If a person acquires the 
                        major portion of either a trade or business or 
                        a separate unit of a trade or business 
                        (hereinafter in this paragraph referred to as 
                        the `acquired business') of another person 
                        (hereinafter in this paragraph referred to as 
                        the `predecessor'), then the amount of 
                        qualified research expenses paid or incurred by 
                        the acquiring person during the measurement 
                        period shall be increased by the amount 
                        determined under clause (ii), and the gross 
                        receipts of the acquiring person for such 
                        period shall be increased by the amount 
                        determined under clause (iii).
                            ``(ii) Amount determined with respect to 
                        qualified research expenses.--The amount 
                        determined under this clause is--
                                    ``(I) for purposes of applying this 
                                section for the taxable year in which 
                                such acquisition is made, the 
                                acquisition year amount, and
                                    ``(II) for purposes of applying 
                                this section for any taxable year after 
                                the taxable year in which such 
                                acquisition is made, so much of the 
                                qualified research expenses paid or 
                                incurred by the predecessor with 
                                respect to the acquired business during 
                                the measurement period.
                            ``(iii) Amount determined with respect to 
                        gross receipts.--The amount determined under 
                        this clause is the amount which would be 
                        determined under clause (ii) if `the gross 
                        receipts of' were substituted for `the 
                        qualified research expenses paid or incurred 
                        by' each place it appears in clauses (ii) and 
                        (iv).
                            ``(iv) Acquisition year amount.--For 
                        purposes of clause (ii), the acquisition year 
                        amount is the amount equal to the product of--
                                    ``(I) so much of the qualified 
                                research expenses paid or incurred by 
                                the predecessor with respect to the 
                                acquired business during the 
                                measurement period, and
                                    ``(II) the number of days in the 
                                period beginning on the date of the 
                                acquisition and ending on the last day 
                                of the taxable year in which the 
                                acquisition is made,
                        divided by the number of days in the acquiring 
                        person's taxable year.
                            ``(v) Special rules for coordinating 
                        taxable years.--In the case of an acquiring 
                        person and a predecessor whose taxable years do 
                        not begin on the same date--
                                    ``(I) each reference to a taxable 
                                year in clauses (i), (ii), and (iv) 
                                shall refer to the appropriate taxable 
                                year of the acquiring person,
                                    ``(II) the qualified research 
                                expenses paid or incurred by the 
                                predecessor, and the gross receipts of 
                                the predecessor, during each taxable 
                                year of the predecessor any portion of 
                                which is part of the measurement period 
                                shall be allocated equally among the 
                                days of such taxable year,
                                    ``(III) the amount of such 
                                qualified research expenses taken into 
                                account under clauses (ii) and (iv) 
                                with respect to a taxable year of the 
                                acquiring person shall be equal to the 
                                total of the expenses attributable 
                                under subclause (II) to the days 
                                occurring during such taxable year, and
                                    ``(IV) the amount of such gross 
                                receipts taken into account under 
                                clause (iii) with respect to a taxable 
                                year of the acquiring person shall be 
                                equal to the total of the gross 
                                receipts attributable under subclause 
                                (II) to the days occurring during such 
                                taxable year.
                            ``(vi) Measurement period.--For purposes of 
                        this subparagraph, the term `measurement 
                        period' means, with respect to the taxable year 
                        in which the credit is determined, any period 
                        of the acquiring person preceding such taxable 
                        year which is taken into account for purposes 
                        of determining the credit for such year.''.
            (2) Expenses and gross receipts of a disposing person.--
        Subparagraph (B) of section 41(f)(3) is amended to read as 
        follows:
                    ``(B) Dispositions.--If a person disposes of the 
                major portion of either a trade or business or a 
                separate unit of a trade or business in a transaction 
                to which subparagraph (A) applies, and the disposing 
                person furnished to the acquiring person such 
                information as is necessary for the application of 
                subparagraph (A), then, for purposes of applying this 
                section for any taxable year ending after such 
                disposition--
                            ``(i) the amount of qualified research 
                        expenses paid or incurred by the disposing 
                        person during the measurement period (as 
                        defined in subparagraph (A)(vi)) shall be 
                        decreased by the amount of the increase in 
                        qualified research expenses determined under 
                        subparagraph (A) with respect to the acquiring 
                        person for such taxable year, and
                            ``(ii) the gross receipts of the disposing 
                        person during the measurement period (as so 
                        defined) shall be decreased by the amount of 
                        the increase in gross receipts determined under 
                        subparagraph (A) with respect to the acquiring 
                        person for such taxable year.''.
    (c) Aggregation of Expenditures.--Paragraph (1) of section 41(f) is 
amended--
            (1) by striking ``shall be its proportionate shares of the 
        qualified research expenses, basic research payments, and 
        amounts paid or incurred to energy research consortiums, giving 
        rise to the credit'' in subparagraph (A)(ii) and inserting 
        ``shall be determined on a proportionate basis to its share of 
        the aggregate of the qualified research expenses, basic 
        research payments, and amounts paid or incurred to energy 
        research consortiums, taken into account by such controlled 
        group for purposes of this section'', and
            (2) by striking ``shall be its proportionate shares of the 
        qualified research expenses, basic research payments, and 
        amounts paid or incurred to energy research consortiums, giving 
        rise to the credit'' in subparagraph (B)(ii) and inserting 
        ``shall be determined on a proportionate basis to its share of 
        the aggregate of the qualified research expenses, basic 
        research payments, and amounts paid or incurred to energy 
        research consortiums, taken into account by all such persons 
        under common control for purposes of this section''.
    (d) Effective Date.--
            (1) Extension.--The amendments made by subsection (a) shall 
        apply to amounts paid or incurred after December 31, 2011.
            (2) Modifications.--The amendments made by subsections (b) 
        and (c) shall apply to taxable years beginning after December 
        31, 2011.

SEC. 202. EXTENSION OF TEMPORARY MINIMUM LOW-INCOME TAX CREDIT RATE FOR 
              NON-FEDERALLY SUBSIDIZED NEW BUILDINGS.

    (a) In General.--Subparagraph (A) of section 42(b)(2) is amended by 
striking ``and before December 31, 2013'' and inserting ``with respect 
to housing credit dollar amount allocations made before January 1, 
2014''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 203. EXTENSION OF HOUSING ALLOWANCE EXCLUSION FOR DETERMINING AREA 
              MEDIAN GROSS INCOME FOR QUALIFIED RESIDENTIAL RENTAL 
              PROJECT EXEMPT FACILITY BONDS.

    (a) In General.--Subsection (b) of section 3005 of the Housing 
Assistance Tax Act of 2008 is amended by striking ``January 1, 2012'' 
each place it appears and inserting ``January 1, 2014''.
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in the enactment of section 3005 of the Housing 
Assistance Tax Act of 2008.

SEC. 204. EXTENSION OF INDIAN EMPLOYMENT TAX CREDIT.

    (a) In General.--Subsection (f) of section 45A is amended by 
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2011.

SEC. 205. EXTENSION OF NEW MARKETS TAX CREDIT.

    (a) In General.--Subparagraph (G) of section 45D(f)(1) is amended 
by striking ``2010 and 2011'' and inserting ``2010, 2011, 2012, and 
2013''.
    (b) Carryover of Unused Limitation.--Paragraph (3) of section 
45D(f) is amended by striking ``2016'' and inserting ``2018''.
    (c) Effective Date.--The amendments made by this section shall 
apply to calendar years beginning after December 31, 2011.

SEC. 206. EXTENSION OF RAILROAD TRACK MAINTENANCE CREDIT.

    (a) In General.--Subsection (f) of section 45G is amended by 
striking ``January 1, 2012'' and inserting ``January 1, 2014''.
    (b) Effective Date.--The amendment made by this section shall apply 
to expenditures paid or incurred in taxable years beginning after 
December 31, 2011.

SEC. 207. EXTENSION OF MINE RESCUE TEAM TRAINING CREDIT.

    (a) In General.--Subsection (e) of section 45N is amended by 
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2011.

SEC. 208. EXTENSION OF EMPLOYER WAGE CREDIT FOR EMPLOYEES WHO ARE 
              ACTIVE DUTY MEMBERS OF THE UNIFORMED SERVICES.

    (a) In General.--Subsection (f) of section 45P is amended by 
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
    (b) Effective Date.--The amendment made by this section shall apply 
to payments made after December 31, 2011.

SEC. 209. EXTENSION OF WORK OPPORTUNITY TAX CREDIT.

    (a) In General.--Subparagraph (B) of section 51(c)(4) is amended by 
striking ``after'' and all that follows and inserting ``after December 
31, 2013''.
    (b) Effective Date.--The amendment made by this section shall apply 
to individuals who begin work for the employer after December 31, 2011.

SEC. 210. EXTENSION OF QUALIFIED ZONE ACADEMY BONDS.

    (a) In General.--Paragraph (1) of section 54E(c) is amended by 
inserting ``, 2012, and 2013'' after ``for 2011''.
    (b) Effective Date.--The amendments made by this section shall 
apply to obligations issued after December 31, 2011.

SEC. 211. EXTENSION OF 15-YEAR STRAIGHT-LINE COST RECOVERY FOR 
              QUALIFIED LEASEHOLD IMPROVEMENTS, QUALIFIED RESTAURANT 
              BUILDINGS AND IMPROVEMENTS, AND QUALIFIED RETAIL 
              IMPROVEMENTS.

    (a) In General.--Clauses (iv), (v), and (ix) of section 
168(e)(3)(E) are each amended by striking ``January 1, 2012'' and 
inserting ``January 1, 2014''.
    (b) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2011.

SEC. 212. EXTENSION OF 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS 
              ENTERTAINMENT COMPLEXES.

    (a) In General.--Subparagraph (D) of section 168(i)(15) is amended 
by striking ``December 31, 2011'' and inserting ``December 31, 2013''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2011.

SEC. 213. EXTENSION OF ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY 
              ON AN INDIAN RESERVATION.

    (a) In General.--Paragraph (8) of section 168(j) is amended by 
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2011.

SEC. 214. EXTENSION OF ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS 
              OF FOOD INVENTORY.

    (a) In General.--Clause (iv) of section 170(e)(3)(C) is amended by 
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made after December 31, 2011.

SEC. 215. 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) 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) 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 is 
        amended by striking paragraph (6).
    (b) Computer Software.--Section 179(d)(1)(A)(ii) is amended by 
striking ``2013'' and inserting ``2014''.
    (c) Election.--Section 179(c)(2) is amended by striking ``2013'' 
and inserting ``2014''.
    (d) Special Rules for Treatment of Qualified Real Property.--
            (1) In general.--Section 179(f)(1) is amended by striking 
        ``2010 or 2011'' and inserting ``2010, 2011, 2012, or 2013''.
            (2) Carryover limitation.--
                    (A) In general.--Section 179(f)(4) is amended by 
                striking ``2011'' each place it appears and inserting 
                ``2013''.
                    (B) Conforming amendment.--Subparagraph (C) of 
                section 179(f)(4) is amended--
                            (i) in the heading, by striking ``2010'' 
                        and inserting ``2010, 2011 and 2012'', and
                            (ii) by adding at the end the following: 
                        ``For the last taxable year beginning in 2013, 
                        the amount determined under subsection 
                        (b)(3)(A) for such taxable year shall be 
                        determined without regard to this paragraph.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2011.

SEC. 216. EXTENSION OF ELECTION TO EXPENSE MINE SAFETY EQUIPMENT.

    (a) In General.--Subsection (g) of section 179E is amended by 
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2011.

SEC. 217. EXTENSION OF SPECIAL EXPENSING RULES FOR CERTAIN FILM AND 
              TELEVISION PRODUCTIONS.

    (a) In General.--Subsection (f) of section 181 is amended by 
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
    (b) Effective Date.--The amendment made by this section shall apply 
to productions commencing after December 31, 2011.

SEC. 218. EXTENSION OF DEDUCTION ALLOWABLE WITH RESPECT TO INCOME 
              ATTRIBUTABLE TO DOMESTIC PRODUCTION ACTIVITIES IN PUERTO 
              RICO.

    (a) In General.--Subparagraph (C) of section 199(d)(8) is amended--
            (1) by striking ``first 6 taxable years'' and inserting 
        ``first 8 taxable years'', and
            (2) by striking ``January 1, 2012'' and inserting ``January 
        1, 2014''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2011.

SEC. 219. EXTENSION OF MODIFICATION OF TAX TREATMENT OF CERTAIN 
              PAYMENTS TO CONTROLLING EXEMPT ORGANIZATIONS.

    (a) In General.--Clause (iv) of section 512(b)(13)(E) is amended by 
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
    (b) Effective Date.--The amendment made by this section shall apply 
to payments received or accrued after December 31, 2011.

SEC. 220. EXTENSION OF TREATMENT OF CERTAIN DIVIDENDS OF REGULATED 
              INVESTMENT COMPANIES.

    (a) In General.--Paragraphs (1)(C) and (2)(C) of section 871(k) are 
each amended by striking ``December 31, 2011'' and inserting ``December 
31, 2013''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2011.

SEC. 221. EXTENSION OF RIC QUALIFIED INVESTMENT ENTITY TREATMENT UNDER 
              FIRPTA.

    (a) In General.--Clause (ii) of section 897(h)(4)(A) is amended by 
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
    (b) Effective Date.--
            (1) In general.--The amendment made by subsection (a) shall 
        take effect on January 1, 2012. Notwithstanding the preceding 
        sentence, such amendment shall not apply with respect to the 
        withholding requirement under section 1445 of the Internal 
        Revenue Code of 1986 for any payment made before the date of 
        the enactment of this Act.
            (2) Amounts withheld on or before date of enactment.--In 
        the case of a regulated investment company--
                    (A) which makes a distribution after December 31, 
                2011, and before the date of the enactment of this Act; 
                and
                    (B) which would (but for the second sentence of 
                paragraph (1)) have been required to withhold with 
                respect to such distribution under section 1445 of such 
                Code,
        such investment company shall not be liable to any person to 
        whom such distribution was made for any amount so withheld and 
        paid over to the Secretary of the Treasury.

SEC. 222. EXTENSION OF SUBPART F EXCEPTION FOR ACTIVE FINANCING INCOME.

    (a) Exempt Insurance Income.--Paragraph (10) of section 953(e) is 
amended--
            (1) by striking ``January 1, 2012'' and inserting ``January 
        1, 2014'', and
            (2) by striking ``December 31, 2011'' and inserting 
        ``December 31, 2013''.
    (b) Special Rule for Income Derived in the Active Conduct of 
Banking, Financing, or Similar Businesses.--Paragraph (9) of section 
954(h) is amended by striking ``January 1, 2012'' and inserting 
``January 1, 2014''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years of foreign corporations beginning after December 
31, 2011, and to taxable years of United States shareholders with or 
within which any such taxable year of such foreign corporation ends.

SEC. 223. EXTENSION OF LOOK-THRU TREATMENT OF PAYMENTS BETWEEN RELATED 
              CONTROLLED FOREIGN CORPORATIONS UNDER FOREIGN PERSONAL 
              HOLDING COMPANY RULES.

    (a) In General.--Subparagraph (C) of section 954(c)(6) is amended 
by striking ``January 1, 2012'' and inserting ``January 1, 2014''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years of foreign corporations beginning after December 31, 
2011, and to taxable years of United States shareholders with or within 
which such taxable years of foreign corporations end.

SEC. 224. EXTENSION OF TEMPORARY EXCLUSION OF 100 PERCENT OF GAIN ON 
              CERTAIN SMALL BUSINESS STOCK.

    (a) In General.--Paragraph (4) of section 1202(a) is amended--
            (1) by striking ``January 1, 2012'' and inserting ``January 
        1, 2014'', and
            (2) by striking ``and 2011'' and inserting ``, 2011, 2012, 
        and 2013'' in the heading thereof.
    (b) Technical Amendments.--
            (1) Special rule for 2009 and certain period in 2010.--
        Paragraph (3) of section 1202(a) is amended by adding at the 
        end the following new flush sentence:
        ``In the case of any stock which would be described in the 
        preceding sentence (but for this sentence), the acquisition 
        date for purposes of this subsection shall be the first day on 
        which such stock was held by the taxpayer determined after the 
        application of section 1223.''.
            (2) 100 percent exclusion.--Paragraph (4) of section 
        1202(a) is amended by adding at the end the following new flush 
        sentence:
        ``In the case of any stock which would be described in the 
        preceding sentence (but for this sentence), the acquisition 
        date for purposes of this subsection shall be the first day on 
        which such stock was held by the taxpayer determined after the 
        application of section 1223.''.
    (c) Effective Dates.--
            (1) In general.--The amendments made by subsection (a) 
        shall apply to stock acquired after December 31, 2011.
            (2) Subsection (b)(1).--The amendment made by subsection 
        (b)(1) shall take effect as if included in section 1241(a) of 
        division B of the American Recovery and Reinvestment Act of 
        2009.
            (3) Subsection (b)(2).--The amendment made by subsection 
        (b)(2) shall take effect as if included in section 2011(a) of 
        the Creating Small Business Jobs Act of 2010.

SEC. 225. EXTENSION OF BASIS ADJUSTMENT TO STOCK OF S CORPORATIONS 
              MAKING CHARITABLE CONTRIBUTIONS OF PROPERTY.

    (a) In General.--Paragraph (2) of section 1367(a) is amended by 
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made in taxable years beginning after December 31, 
2011.

SEC. 226. EXTENSION OF REDUCTION IN S-CORPORATION RECOGNITION PERIOD 
              FOR BUILT-IN GAINS TAX.

    (a) In General.--Paragraph (7) of section 1374(d) is amended--
            (1) by redesignating subparagraph (C) as subparagraph (D), 
        and
            (2) by inserting after subparagraph (B) the following new 
        subparagraph:
                    ``(C) Special rule for 2012 and 2013.--For 
                dispositions of property in taxable years beginning in 
                2012 or 2013, subparagraphs (A) and (D) shall be 
                applied by substituting `5-year' for `10-year'.''.
    (b) Technical Amendment.--Subparagraph (B) of section 1374(d)(2) is 
amended by inserting ``described in subparagraph (A)'' after ``, for 
any taxable year''.
    (c) Effective Date.--The amendments made by subsection (a) shall 
apply to taxable years beginning after December 31, 2011.

SEC. 227. EXTENSION OF EMPOWERMENT ZONE TAX INCENTIVES.

    (a) In General.--Clause (i) of section 1391(d)(1)(A) is amended by 
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
    (b) Increased Exclusion of Gain on Stock of Empowerment Zone 
Businesses.--Subparagraph (C) of section 1202(a)(2) is amended--
            (1) by striking ``December 31, 2016'' and inserting 
        ``December 31, 2018''; and
            (2) by striking ``2016'' in the heading and inserting 
        ``2018''.
    (c) Treatment of Certain Termination Dates Specified in 
Nominations.--In the case of a designation of an empowerment zone the 
nomination for which included a termination date which is 
contemporaneous with the date specified in subparagraph (A)(i) of 
section 1391(d)(1) of the Internal Revenue Code of 1986 (as in effect 
before the enactment of this Act), subparagraph (B) of such section 
shall not apply with respect to such designation if, after the date of 
the enactment of this section, the entity which made such nomination 
amends the nomination to provide for a new termination date in such 
manner as the Secretary of the Treasury (or the Secretary's designee) 
may provide.
    (d) Effective Date.--The amendments made by this section shall 
apply to periods after December 31, 2011.

SEC. 228. EXTENSION OF TAX-EXEMPT FINANCING FOR NEW YORK LIBERTY ZONE.

    (a) In General.--Subparagraph (D) of section 1400L(d)(2) is amended 
by striking ``January 1, 2012'' and inserting ``January 1, 2014''.
    (b) Effective Date.--The amendment made by this section shall apply 
to bonds issued after December 31, 2011.

SEC. 229. EXTENSION OF TEMPORARY INCREASE IN LIMIT ON COVER OVER OF RUM 
              EXCISE TAXES TO PUERTO RICO AND THE VIRGIN ISLANDS.

    (a) In General.--Paragraph (1) of section 7652(f) is amended by 
striking ``January 1, 2012'' and inserting ``January 1, 2014''.
    (b) Effective Date.--The amendment made by this section shall apply 
to distilled spirits brought into the United States after December 31, 
2011.

SEC. 230. MODIFICATION AND EXTENSION OF AMERICAN SAMOA ECONOMIC 
              DEVELOPMENT CREDIT.

    (a) Modification.--
            (1) In general.--Subsection (a) of section 119 of division 
        A of the Tax Relief and Health Care Act of 2006 is amended by 
        striking ``if such corporation'' and all that follows and 
        inserting ``if--
            ``(1) in the case of a taxable year beginning before 
        January 1, 2012, such corporation--
                    ``(A) is an existing credit claimant with respect 
                to American Samoa, and
                    ``(B) elected the application of section 936 of the 
                Internal Revenue Code of 1986 for its last taxable year 
                beginning before January 1, 2006, and
            ``(2) in the case of a taxable year beginning after 
        December 31, 2011, such corporation meets the requirements of 
        subsection (e).''.
            (2) Requirements.--Section 119 of division A of such Act is 
        amended by adding at the end the following new subsection:
    ``(e) Qualified Production Activities Income Requirement.--A 
corporation meets the requirement of this subsection if such 
corporation has qualified production activities income, as defined in 
subsection (c) of section 199 of the Internal Revenue Code of 1986, 
determined by substituting `American Samoa' for `the United States' 
each place it appears in paragraphs (3), (4), and (6) of such 
subsection (c), for the taxable year.''.
    (b) Extension.--Subsection (d) of section 119 of division A of the 
Tax Relief and Health Care Act of 2006 is amended by striking ``shall 
apply'' and all that follows and inserting ``shall apply--
            ``(1) in the case of a corporation that meets the 
        requirements of subparagraphs (A) and (B) of subsection (a)(1), 
        to the first 8 taxable years of such corporation which begin 
        after December 31, 2006, and before January 1, 2014, and
            ``(2) in the case of a corporation that does not meet the 
        requirements of subparagraphs (A) and (B) of subsection (a)(1), 
        to the first 2 taxable years of such corporation which begin 
        after December 31, 2011, and before January 1, 2014.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2011.

                    TITLE III--ENERGY TAX EXTENDERS

SEC. 301. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT EXISTING HOMES.

    (a) In General.--Paragraph (2) of section 25C(g) is amended by 
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2011.

SEC. 302. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL VEHICLE REFUELING 
              PROPERTY.

    (a) In General.--Paragraph (2) of section 30C(g) is amended by 
striking ``December 31, 2011.'' and inserting ``December 31, 2013''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2011.

SEC. 303. EXTENSION OF CREDIT FOR 2- OR 3-WHEELED PLUG-IN ELECTRIC 
              VEHICLES.

    (a) In General.--Section 30D is amended by adding at the end the 
following new subsection:
    ``(g) Credit Allowed for 2- and 3-wheeled Plug-in Electric 
Vehicles.--
            ``(1) In general.--In the case of a qualified 2- or 3-
        wheeled plug-in electric vehicle--
                    ``(A) there shall be allowed as a credit against 
                the tax imposed by this chapter for the taxable year an 
                amount equal to the sum of the applicable amount with 
                respect to each such qualified 2- or 3-wheeled plug-in 
                electric vehicle placed in service by the taxpayer 
                during the taxable year, and
                    ``(B) the amount of the credit allowed under 
                subparagraph (A) shall be treated as a credit allowed 
                under subsection (a).
            ``(2) Applicable amount.--For purposes of paragraph (1), 
        the applicable amount is an amount equal to the lesser of--
                    ``(A) 10 percent of the cost of the qualified 2- or 
                3-wheeled plug-in electric vehicle, or
                    ``(B) $2,500.
            ``(3) Qualified 2- or 3-wheeled plug-in electric vehicle.--
        The term `qualified 2- or 3-wheeled plug-in electric vehicle' 
        means any vehicle which--
                    ``(A) has 2 or 3 wheels,
                    ``(B) meets the requirements of subparagraphs (A), 
                (B), (C), (E), and (F) of subsection (d)(1) (determined 
                by substituting `2.5 kilowatt hours' for `4 kilowatt 
                hours' in subparagraph (F)(i)),
                    ``(C) is manufactured primarily for use on public 
                streets, roads, and highways,
                    ``(D) is capable of achieving a speed of 45 miles 
                per hour or greater, and
                    ``(E) is acquired after December 31, 2011, and 
                before January 1, 2014.''.
    (b) Air Quality and Safety Standards.--Subparagraph (B) of section 
30D(f)(7) is amended by inserting ``, or section 571, whichever is 
applicable,'' after ``sections 30101 through 30169''.
    (c) Effective Date.--The amendments made by this section shall 
apply to vehicles acquired after December 31, 2011.

SEC. 304. EXTENSION AND MODIFICATION OF CELLULOSIC BIOFUEL PRODUCER 
              CREDIT.

    (a) Extension.--
            (1) In general.--Subparagraph (H) of section 40(b)(6) is 
        amended to read as follows:
                    ``(H) Application of paragraph.--
                            ``(i) In general.--This paragraph shall 
                        apply with respect to qualified cellulosic 
                        biofuel production after December 31, 2008, and 
                        before January 1, 2014.
                            ``(ii) No carryover to certain years after 
                        expiration.--If this paragraph ceases to apply 
                        for any period by reason of clause (i), rules 
                        similar to the rules of subsection (e)(2) shall 
                        apply.''.
            (2) Conforming amendment.--Paragraph (2) of section 40(e) 
        is amended by striking ``or subsection (b)(6)(H)''.
            (3) Effective date.--The amendments made by this subsection 
        shall take effect as if included in section 15321(b) of the 
        Heartland, Habitat, and Horticulture Act of 2008.
    (b) Algae Treated as a Qualified Feedstock.--
            (1) In general.--Subclause (I) of section 40(b)(6)(E)(i) is 
        amended to read as follows:
                                    ``(I) is derived by, or from, 
                                qualified feedstocks, and''.
            (2) Qualified feedstock; special rules for algae.--
        Paragraph (6) of section 40(b) is amended by redesignating 
        subparagraphs (F), (G), and (H), as amended by this Act, as 
        subparagraphs (H), (I), and (J), respectively, and by inserting 
        after subparagraph (E) the following new subparagraphs:
                    ``(F) Qualified feedstock.--For purposes of this 
                paragraph, the term `qualified feedstock' means--
                            ``(i) any lignocellulosic or hemicellulosic 
                        matter that is available on a renewable or 
                        recurring basis, and
                            ``(ii) any cultivated algae, cyanobacteria, 
                        or lemna.
                    ``(G) Special rules for algae.--In the case of fuel 
                which is derived by, or from, feedstock described in 
                subparagraph (F)(ii) and which is sold by the taxpayer 
                to another person for refining by such other person 
                into a fuel which meets the requirements of 
                subparagraph (E)(i)(II) and the refined fuel is not 
                excluded under subparagraph (E)(iii)--
                            ``(i) such sale shall be treated as 
                        described in subparagraph (C)(i),
                            ``(ii) such fuel shall be treated as 
                        meeting the requirements of subparagraph 
                        (E)(i)(II) and as not being excluded under 
                        subparagraph (E)(iii) in the hands of such 
                        taxpayer, and
                            ``(iii) except as provided in this 
                        subparagraph, such fuel (and any fuel derived 
                        from such fuel) shall not be taken into account 
                        under subparagraph (C) with respect to the 
                        taxpayer or any other person.''.
            (3) Conforming amendments.--
                    (A) Section 40, as amended by paragraph (2), is 
                amended--
                            (i) by striking ``cellulosic biofuel'' each 
                        place it appears in the text thereof and 
                        inserting ``second generation biofuel'',
                            (ii) by striking ``Cellulosic'' in the 
                        headings of subsections (b)(6), (b)(6)(E), and 
                        (d)(3)(D) and inserting ``Second generation'', 
                        and
                            (iii) by striking ``cellulosic'' in the 
                        headings of subsections (b)(6)(C), (b)(6)(D), 
                        (b)(6)(H), (d)(6), and (e)(3) and inserting 
                        ``second generation''.
                    (B) Clause (ii) of section 40(b)(6)(E) is amended 
                by striking ``Such term shall not'' and inserting ``The 
                term `second generation biofuel' shall not''.
                    (C) Paragraph (1) of section 4101(a) is amended by 
                striking ``cellulosic biofuel'' and inserting ``second 
                generation biofuel''.
            (4) Effective date.--The amendments made by this subsection 
        shall apply to fuels sold or used after the date of the 
        enactment of this Act.

SEC. 305. EXTENSION OF INCENTIVES FOR BIODIESEL AND RENEWABLE DIESEL.

    (a) Credits for Biodiesel and Renewable Diesel Used as Fuel.--
Subsection (g) of section 40A is amended by striking ``December 31, 
2011'' and inserting ``December 31, 2013''.
    (b) Excise Tax Credits and Outlay Payments for Biodiesel and 
Renewable Diesel Fuel Mixtures.--
            (1) Paragraph (6) of section 6426(c) is amended by striking 
        ``December 31, 2011'' and inserting ``December 31, 2013''.
            (2) Subparagraph (B) of section 6427(e)(6) is amended by 
        striking ``December 31, 2011'' and inserting ``December 31, 
        2013''.
    (c) Effective Date.--The amendments made by this section shall 
apply to fuel sold or used after December 31, 2011.

SEC. 306. EXTENSION OF PRODUCTION CREDIT FOR INDIAN COAL FACILITIES 
              PLACED IN SERVICE BEFORE 2009.

    (a) In General.--Subparagraph (A) of section 45(e)(10) is amended 
by striking ``7-year period'' each place it appears and inserting ``8-
year period''.
    (b) Effective Date.--The amendment made by this section shall apply 
to coal produced after December 31, 2012.

SEC. 307. EXTENSION AND MODIFICATION OF CREDITS WITH RESPECT TO 
              FACILITIES PRODUCING ENERGY FROM CERTAIN RENEWABLE 
              RESOURCES.

    (a) Production Tax Credit.--
            (1) Extension for wind facilities.--Paragraph (1) of 
        section 45(d) is amended by striking ``January 1, 2013'' and 
        inserting ``January 1, 2014''.
            (2) Exclusion of paper which is commonly recycled from 
        definition of municipal solid waste.--Section 45(c)(6) is 
        amended by inserting ``, except that such term does not include 
        paper which is commonly recycled and which has been segregated 
        from other solid waste (as so defined)'' after ``(42 U.S.C. 
        6903)''.
            (3) Modification to definition of qualified facility.--
                    (A) In general.--The following provisions of 
                section 45(d), as amended by paragraph (1), are each 
                amended by striking ``before January 1, 2014'' and 
                inserting ``the construction of which begins before 
                January 1, 2014'':
                            (i) Paragraph (1).
                            (ii) Paragraph (2)(A)(i).
                            (iii) Paragraph (3)(A)(i)(I).
                            (iv) Paragraph (6).
                            (v) Paragraph (7).
                            (vi) Paragraph (9)(B).
                            (vii) Paragraph (11)(B).
                    (B) Certain closed-loop biomass facilities.--
                Subparagraph (A) of section 45(d)(2) is amended by 
                adding at the end the following new flush sentence:
                ``For purposes of clause (ii), a facility shall be 
                treated as modified before January 1, 2014, if the 
                construction of such modification begins before such 
                date.''.
                    (C) Certain open-loop biomass facilities.--Clause 
                (ii) of section 45(d)(3)(A) is amended by striking ``is 
                originally placed in service'' and inserting ``the 
                construction of which begins''.
                    (D) Geothermal facilities.--
                            (i) In general.--Paragraph (4) of section 
                        45(d) is amended by striking ``and before 
                        January 1, 2014'' and all that follows and 
                        inserting ``and which--
                    ``(A) in the case of a facility using solar energy, 
                is placed in service before January 1, 2006, or
                    ``(B) in the case of a facility using geothermal 
                energy, the construction of which begins before January 
                1, 2014.
        Such term shall not include any property described in section 
        48(a)(3) the basis of which is taken into account by the 
        taxpayer for purposes of determining the energy credit under 
        section 48.''.
                    (E) Incremental hydropower production.--Paragraph 
                (9) of section 45(d) is amended--
                            (i) by redesignating subparagraphs (A) and 
                        (B), as amended by subparagraph (A), as clauses 
                        (i) and (ii), respectively, and by moving such 
                        clauses (as so redesignated) 2 ems to the 
                        right,
                            (ii) by striking ``In the case of a 
                        facility'' and inserting the following:
                    ``(A) In general.--In the case of a facility'',
                            (iii) by redesignating subparagraph (C) as 
                        subparagraph (B), and
                            (iv) by adding at the end the following new 
                        subparagraph:
                    ``(C) Special rule.--For purposes of subparagraph 
                (A)(i), an efficiency improvement or addition to 
                capacity shall be treated as placed in service modified 
                before January 1, 2014, if the construction of such 
                improvement or addition begins before such date.''.
    (b) Extension of Election to Treat Qualified Facilities as Energy 
Property.--Subparagraph (C) of section 48(a)(5) is amended to read as 
follows:
                    ``(C) Qualified investment credit facility.--For 
                purposes of this paragraph, the term `qualified 
                investment credit facility' means any facility--
                            ``(i) which is a qualified facility (within 
                        the meaning of section 45) described in 
                        paragraph (1), (2), (3), (4), (6), (7), (9), or 
                        (11) of section 45(d),
                            ``(ii) which is placed in service after 
                        2008 and the construction of which begins 
                        before January 1, 2014, and
                            ``(iii) with respect to which--
                                    ``(I) no credit has been allowed 
                                under section 45, and
                                    ``(II) the taxpayer makes an 
                                irrevocable election to have this 
                                paragraph apply.''.
    (c) Technical Corrections.--
            (1) Subparagraph (D) of section 48(a)(5) is amended--
                    (A) by striking the period at the end of clause 
                (ii) and inserting a comma, and
                    (B) by adding at the end the following new clauses:
                            ``(iii) which is constructed, 
                        reconstructed, erected, or acquired by the 
                        taxpayer, and
                            ``(iv) the original use of which commences 
                        with the taxpayer.''.
            (2) Paragraphs (1) and (2) of subsection (a) of section 
        1603 of division B of the American Recovery and Reinvestment 
        Act of 2009 are each amended by striking ``placed in service'' 
        and inserting ``originally placed in service by such person''.
    (d) Effective Dates.--
            (1) In general.--Except as provided in paragraphs (2) and 
        (3), the amendments made by this section shall take effect on 
        the date of the enactment of this Act.
            (2) Modification to definition of municipal solid waste.--
        The amendments made by subsection (a)(2) shall apply to 
        electricity produced and sold after the date of the enactment 
        of this Act, in taxable years ending after such date.
            (3) Technical corrections.--The amendments made by 
        subsection (c) shall apply as if included in the enactment of 
        the provisions of the American Recovery and Reinvestment Act of 
        2009 to which they relate.

SEC. 308. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT NEW HOMES.

    (a) In General.--Subsection (g) of section 45L is amended by 
striking ``December 31, 2011'' and inserting ``December 31, 2013''.
    (b) Effective Date.--The amendment made by this section shall apply 
to homes acquired after December 31, 2011.

SEC. 309. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT APPLIANCES.

    (a) In General.--Section 45M(b) is amended by striking ``2011'' 
each place it appears other than in the provisions specified in 
subsection (b) and inserting ``2011, 2012, or 2013''.
    (b) Provisions Specified.--The provisions of section 45M(b) 
specified in this subsection are subparagraph (C) of paragraph (1) and 
subparagraph (E) of paragraph (2).
    (c) Effective Date.--The amendments made by this section shall 
apply to appliances produced after December 31, 2011.

SEC. 310. EXTENSION AND MODIFICATION OF SPECIAL ALLOWANCE FOR 
              CELLULOSIC BIOFUEL PLANT PROPERTY.

    (a) Extension.--
            (1) In general.--Subparagraph (D) of section 168(l)(2) is 
        amended by striking ``January 1, 2013'' and inserting ``January 
        1, 2014''.
            (2) Conforming amendment.--Paragraph (5) of section 168(l), 
        as redesignated by this Act, is amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (A),
                    (B) by redesignating subparagraph (B) as 
                subparagraph (C), and
                    (C) by inserting after subparagraph (A) the 
                following new subparagraph:
                    ``(B) by substituting `January 1, 2014' for 
                `January 1, 2013' in clause (i) thereof, and''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to property placed in service after December 31, 
        2012.
    (b) Algae Treated as a Qualified Feedstock for Purposes of Bonus 
Depreciation for Biofuel Plant Property.--
            (1) In general.--Subparagraph (A) of section 168(l)(2) is 
        amended by striking ``solely to produce cellulosic biofuel'' 
        and inserting ``solely to produce second generation biofuel (as 
        defined in section 40(b)(6)(E))''.
            (2) Conforming amendments.--Subsection (l) of section 168, 
        as amended by subsection (a), is amended--
                    (A) by striking ``cellulosic biofuel'' each place 
                it appears in the text thereof and inserting ``second 
                generation biofuel'',
                    (B) by striking paragraph (3) and redesignating 
                paragraphs (4) through (8) as paragraphs (3) through 
                (7), respectively,
                    (C) by striking ``Cellulosic'' in the heading of 
                such subsection and inserting ``Second Generation'', 
                and
                    (D) by striking ``cellulosic'' in the heading of 
                paragraph (2) and inserting ``second generation''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to property placed in service after the date of the 
        enactment of this Act.

SEC. 311. EXTENSION OF SPECIAL RULE FOR SALES OR DISPOSITIONS TO 
              IMPLEMENT FERC OR STATE ELECTRIC RESTRUCTURING POLICY FOR 
              QUALIFIED ELECTRIC UTILITIES.

    (a) In General.--Paragraph (3) of section 451(i) is amended by 
striking ``January 1, 2012'' and inserting ``January 1, 2014''.
    (b) Effective Date.--The amendment made by this section shall apply 
to dispositions after December 31, 2011.

SEC. 312. EXTENSION OF ALTERNATIVE FUELS EXCISE TAX CREDITS.

    (a) In General.--Sections 6426(d)(5) and 6426(e)(3) are each 
amended by striking ``December 31, 2011'' and inserting ``December 31, 
2013''.
    (b) Outlay Payments for Alternative Fuels.--Paragraph (6) of 
section 6427(e) is amended--
            (1) in subparagraph (C)--
                    (A) by striking ``or alternative fuel mixture (as 
                defined in subsection (d)(2) or (e)(3) of section 
                6426)'' and inserting ``(as defined in section 
                6426(d)(2))'', and
                    (B) by striking ``December 31, 2011, and'' and 
                inserting ``December 31, 2013,'',
            (2) in subparagraph (D)--
                    (A) by striking ``or alternative fuel mixture'', 
                and
                    (B) by striking the period at the end and inserting 
                ``, and'', and
            (3) by adding at the end the following new subparagraph:
                    ``(E) any alternative fuel mixture (as defined in 
                section 6426(e)(2)) sold or used after December 31, 
                2011.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to fuel sold or used after December 31, 2011.

                       TITLE IV--OTHER PROVISIONS

SEC. 401. SENSE OF THE SENATE REGARDING TAX REFORM.

    It is the sense of the Senate that--
            (1) comprehensive tax reform is vital to economic growth 
        and United States competitiveness and should begin in 2013,
            (2) a major focus of comprehensive tax reform should be 
        broadening the tax base so as to lower tax rates, including by 
        reforming, eliminating, or significantly reducing tax 
        expenditures, including provisions traditionally extended by 
        Congress from year to year, and
            (3) whenever possible, federal energy tax expenditures 
        should be responsibly phased-out in a manner that allows these 
        technologies to function without a reliance on federal 
        subsidies.

                       TITLE V--BUDGET PROVISIONS

SEC. 501. STATUTORY PAYGO SCORECARD ESTIMATES.

    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go-Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the Senate Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.
                                                       Calendar No. 499

112th CONGRESS

  2d Session

                                S. 3521

                          [Report No. 112-208]

_______________________________________________________________________

                                 A BILL

 To amend the Internal Revenue Code of 1986 to extend certain expiring 
                              provisions.

_______________________________________________________________________

                            August 28, 2012

                 Read twice and placed on the calendar