[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5771 Engrossed in House (EH)]

113th CONGRESS
  2d Session
                                H. R. 5771

_______________________________________________________________________

                                 AN ACT


 
 To amend the Internal Revenue Code of 1986 to extend certain expiring 
   provisions and make technical corrections, to amend the Internal 
Revenue Code of 1986 to provide for the tax treatment of ABLE accounts 
 established under State programs for the care of family members with 
                 disabilities, and for other purposes.

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

            DIVISION A--TAX INCREASE PREVENTION ACT OF 2014

SECTION 1. SHORT TITLE, ETC.

    (a) Short Title.--This division may be cited as the ``Tax Increase 
Prevention Act of 2014''.
    (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 for this Act is as 
follows:

            DIVISION A--TAX INCREASE PREVENTION ACT OF 2014

Sec. 1. Short title, etc.
                  TITLE I--CERTAIN EXPIRING PROVISIONS

                  Subtitle A--Individual Tax Extenders

Sec. 101. Extension of deduction for certain expenses of elementary and 
                            secondary school teachers.
Sec. 102. Extension of exclusion from gross income of discharge of 
                            qualified principal residence indebtedness.
Sec. 103. Extension of parity for employer-provided mass transit and 
                            parking benefits.
Sec. 104. Extension of mortgage insurance premiums treated as qualified 
                            residence interest.
Sec. 105. Extension of deduction of State and local general sales 
                            taxes.
Sec. 106. Extension of special rule for contributions of capital gain 
                            real property made for conservation 
                            purposes.
Sec. 107. Extension of above-the-line deduction for qualified tuition 
                            and related expenses.
Sec. 108. Extension of tax-free distributions from individual 
                            retirement plans for charitable purposes.
                   Subtitle B--Business Tax Extenders

Sec. 111. Extension of research credit.
Sec. 112. Extension of temporary minimum low-income housing tax credit 
                            rate for non-federally subsidized 
                            buildings.
Sec. 113. Extension of military housing allowance exclusion for 
                            determining whether a tenant in certain 
                            counties is low-income.
Sec. 114. Extension of Indian employment tax credit.
Sec. 115. Extension of new markets tax credit.
Sec. 116. Extension of railroad track maintenance credit.
Sec. 117. Extension of mine rescue team training credit.
Sec. 118. Extension of employer wage credit for employees who are 
                            active duty members of the uniformed 
                            services.
Sec. 119. Extension of work opportunity tax credit.
Sec. 120. Extension of qualified zone academy bonds.
Sec. 121. Extension of classification of certain race horses as 3-year 
                            property.
Sec. 122. Extension of 15-year straight-line cost recovery for 
                            qualified leasehold improvements, qualified 
                            restaurant buildings and improvements, and 
                            qualified retail improvements.
Sec. 123. Extension of 7-year recovery period for motorsports 
                            entertainment complexes.
Sec. 124. Extension of accelerated depreciation for business property 
                            on an Indian reservation.
Sec. 125. Extension of bonus depreciation.
Sec. 126. Extension of enhanced charitable deduction for contributions 
                            of food inventory.
Sec. 127. Extension of increased expensing limitations and treatment of 
                            certain real property as section 179 
                            property.
Sec. 128. Extension of election to expense mine safety equipment.
Sec. 129. Extension of special expensing rules for certain film and 
                            television productions.
Sec. 130. Extension of deduction allowable with respect to income 
                            attributable to domestic production 
                            activities in Puerto Rico.
Sec. 131. Extension of modification of tax treatment of certain 
                            payments to controlling exempt 
                            organizations.
Sec. 132. Extension of treatment of certain dividends of regulated 
                            investment companies.
Sec. 133. Extension of RIC qualified investment entity treatment under 
                            FIRPTA.
Sec. 134. Extension of subpart F exception for active financing income.
Sec. 135. Extension of look-thru treatment of payments between related 
                            controlled foreign corporations under 
                            foreign personal holding company rules.
Sec. 136. Extension of temporary exclusion of 100 percent of gain on 
                            certain small business stock.
Sec. 137. Extension of basis adjustment to stock of S corporations 
                            making charitable contributions of 
                            property.
Sec. 138. Extension of reduction in S-corporation recognition period 
                            for built-in gains tax.
Sec. 139. Extension of empowerment zone tax incentives.
Sec. 140. Extension of temporary increase in limit on cover over of rum 
                            excise taxes to Puerto Rico and the Virgin 
                            Islands.
Sec. 141. Extension of American Samoa economic development credit.
                    Subtitle C--Energy Tax Extenders

Sec. 151. Extension of credit for nonbusiness energy property.
Sec. 152. Extension of second generation biofuel producer credit.
Sec. 153. Extension of incentives for biodiesel and renewable diesel.
Sec. 154. Extension of production credit for Indian coal facilities 
                            placed in service before 2009.
Sec. 155. Extension of credits with respect to facilities producing 
                            energy from certain renewable resources.
Sec. 156. Extension of credit for energy-efficient new homes.
Sec. 157. Extension of special allowance for second generation biofuel 
                            plant property.
Sec. 158. Extension of energy efficient commercial buildings deduction.
Sec. 159. Extension of special rule for sales or dispositions to 
                            implement FERC or State electric 
                            restructuring policy for qualified electric 
                            utilities.
Sec. 160. Extension of excise tax credits relating to certain fuels.
Sec. 161. Extension of credit for alternative fuel vehicle refueling 
                            property.
Subtitle D--Extenders Relating to Multiemployer Defined Benefit Pension 
                                 Plans

Sec. 171. Extension of automatic extension of amortization periods.
Sec. 172. Extension of shortfall funding method and endangered and 
                            critical rules.
                    TITLE II--TECHNICAL CORRECTIONS

Sec. 201. Short title.
Sec. 202. Amendments relating to American Taxpayer Relief Act of 2012.
Sec. 203. Amendment relating to Middle Class Tax Relief and Job 
                            Creation Act of 2012.
Sec. 204. Amendment relating to FAA Modernization and Reform Act of 
                            2012.
Sec. 205. Amendments relating to Regulated Investment Company 
                            Modernization Act of 2010.
Sec. 206. Amendments relating to Tax Relief, Unemployment Insurance 
                            Reauthorization, and Job Creation Act of 
                            2010.
Sec. 207. Amendments relating to Creating Small Business Jobs Act of 
                            2010.
Sec. 208. Clerical amendment relating to Hiring Incentives to Restore 
                            Employment Act.
Sec. 209. Amendments relating to American Recovery and Reinvestment Tax 
                            Act of 2009.
Sec. 210. Amendments relating to Energy Improvement and Extension Act 
                            of 2008.
Sec. 211. Amendments relating to Tax Extenders and Alternative Minimum 
                            Tax Relief Act of 2008.
Sec. 212. Clerical amendments relating to Housing Assistance Tax Act of 
                            2008.
Sec. 213. Amendments and provision relating to Heroes Earnings 
                            Assistance and Relief Tax Act of 2008.
Sec. 214. Amendments relating to Economic Stimulus Act of 2008.
Sec. 215. Amendments relating to Tax Technical Corrections Act of 2007.
Sec. 216. Amendment relating to Tax Relief and Health Care Act of 2006.
Sec. 217. Amendment relating to Safe, Accountable, Flexible, Efficient 
                            Transportation Equity Act of 2005: A Legacy 
                            for Users.
Sec. 218. Amendments relating to Energy Tax Incentives Act of 2005.
Sec. 219. Amendments relating to American Jobs Creation Act of 2004.
Sec. 220. Other clerical corrections.
Sec. 221. Deadwood provisions.
                 TITLE III--JOINT COMMITTEE ON TAXATION

Sec. 301. Increased refund and credit threshold for Joint Committee on 
                            Taxation review of C corporation return.
                      TITLE IV--BUDGETARY EFFECTS

Sec. 401. Budgetary effects.
       DIVISION B--ACHIEVING A BETTER LIFE EXPERIENCE ACT OF 2014

Sec. 1. Short title; etc.
                    TITLE I--QUALIFIED ABLE PROGRAMS

Sec. 101. Purposes.
Sec. 102. Qualified ABLE programs.
Sec. 103. Treatment of ABLE accounts under certain Federal programs.
Sec. 104. Treatment of able accounts in bankruptcy.
Sec. 105. Investment direction rule for 529 plans.
                           TITLE II--OFFSETS

Sec. 201. Correction to workers compensation offset age.
Sec. 202. Accelerated application of relative value targets for 
                            misvalued services in the Medicare 
                            physician fee schedule.
Sec. 203. Consistent treatment of vacuum erection systems in Medicare 
                            Parts B and D.
Sec. 204. One-year delay of implementation of oral-only policy under 
                            Medicare ESRD prospective payment system.
Sec. 205. Modification relating to Inland Waterways Trust Fund 
                            financing rate.
Sec. 206. Certified professional employer organizations.
Sec. 207. Exclusion of dividends from controlled foreign corporations 
                            from the definition of personal holding 
                            company income for purposes of the personal 
                            holding company rules.
Sec. 208. Inflation adjustment for certain civil penalties under the 
                            Internal Revenue Code of 1986.
Sec. 209. Increase in continuous levy.

                  TITLE I--CERTAIN EXPIRING PROVISIONS

                  Subtitle A--Individual Tax Extenders

SEC. 101. 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 2013'' and inserting ``2013, or 2014''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2013.

SEC. 102. 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, 2014'' and inserting ``January 1, 2015''.
    (b) Effective Date.--The amendment made by this section shall apply 
to indebtedness discharged after December 31, 2013.

SEC. 103. EXTENSION OF PARITY FOR EMPLOYER-PROVIDED MASS TRANSIT AND 
              PARKING BENEFITS.

    (a) In General.--Paragraph (2) of section 132(f) is amended by 
striking ``January 1, 2014'' and inserting ``January 1, 2015''.
    (b) Effective Date.--The amendment made by this section shall apply 
to months after December 31, 2013.

SEC. 104. 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, 2013'' and inserting ``December 31, 
2014''.
    (b) Effective Date.--The amendment made by this section shall apply 
to amounts paid or accrued after December 31, 2013.

SEC. 105. 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, 2014'' and inserting ``January 1, 2015''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2013.

SEC. 106. 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, 2013'' and inserting ``December 31, 2014''.
    (b) Contributions by Certain Corporate Farmers and Ranchers.--
Clause (iii) of section 170(b)(2)(B) is amended by striking ``December 
31, 2013'' and inserting ``December 31, 2014''.
    (c) Effective Date.--The amendments made by this section shall 
apply to contributions made in taxable years beginning after December 
31, 2013.

SEC. 107. 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, 2013'' and inserting ``December 31, 2014''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2013.

SEC. 108. 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, 2013'' and inserting ``December 31, 2014''.
    (b) Effective Date.--The amendment made by this section shall apply 
to distributions made in taxable years beginning after December 31, 
2013.

                   Subtitle B--Business Tax Extenders

SEC. 111. EXTENSION OF RESEARCH CREDIT.

    (a) In General.--Paragraph (1) of section 41(h) is amended by 
striking ``paid or incurred'' and all that follows and inserting ``paid 
or incurred after December 31, 2014.''.
    (b) Conforming Amendment.--Subparagraph (D) of section 45C(b)(1) is 
amended to read as follows:
                    ``(D) Special rule.--If section 41 is not in effect 
                for any period, such section shall be deemed to remain 
                in effect for such period for purposes of this 
                paragraph.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after December 31, 2013.

SEC. 112. EXTENSION OF TEMPORARY MINIMUM LOW-INCOME HOUSING TAX CREDIT 
              RATE FOR NON-FEDERALLY SUBSIDIZED BUILDINGS.

    (a) In General.--Subparagraph (A) of section 42(b)(2) is amended by 
striking ``January 1, 2014'' and inserting ``January 1, 2015''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on January 1, 2014.

SEC. 113. EXTENSION OF MILITARY HOUSING ALLOWANCE EXCLUSION FOR 
              DETERMINING WHETHER A TENANT IN CERTAIN COUNTIES IS LOW-
              INCOME.

    (a) In General.--Subsection (b) of section 3005 of the Housing 
Assistance Tax Act of 2008 is amended by striking ``January 1, 2014'' 
each place it appears and inserting ``January 1, 2015''.
    (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. 114. EXTENSION OF INDIAN EMPLOYMENT TAX CREDIT.

    (a) In General.--Subsection (f) of section 45A is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2014''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2013.

SEC. 115. EXTENSION OF NEW MARKETS TAX CREDIT.

    (a) In General.--Subparagraph (G) of section 45D(f)(1) is amended 
by striking ``and 2013'' and inserting ``2013, and 2014''.
    (b) Carryover of Unused Limitation.--Paragraph (3) of section 
45D(f) is amended by striking ``2018'' and inserting ``2019''.
    (c) Effective Date.--The amendments made by this section shall 
apply to calendar years beginning after December 31, 2013.

SEC. 116. EXTENSION OF RAILROAD TRACK MAINTENANCE CREDIT.

    (a) In General.--Subsection (f) of section 45G is amended by 
striking ``January 1, 2014'' and inserting ``January 1, 2015''.
    (b) Effective Date.--The amendment made by this section shall apply 
to expenditures paid or incurred in taxable years beginning after 
December 31, 2013.

SEC. 117. EXTENSION OF MINE RESCUE TEAM TRAINING CREDIT.

    (a) In General.--Subsection (e) of section 45N is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2014''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2013.

SEC. 118. 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, 2013'' and inserting ``December 31, 2014''.
    (b) Effective Date.--The amendment made by this section shall apply 
to payments made after December 31, 2013.

SEC. 119. EXTENSION OF WORK OPPORTUNITY TAX CREDIT.

    (a) In General.--Paragraph (4) of section 51(c) is amended by 
striking ``for the employer'' and all that follows and inserting ``for 
the employer after December 31, 2014''.
    (b) Effective Date.--The amendment made by this section shall apply 
to individuals who begin work for the employer after December 31, 2013.

SEC. 120. EXTENSION OF QUALIFIED ZONE ACADEMY BONDS.

    (a) Extension.--Paragraph (1) of section 54E(c) is amended by 
striking ``and 2013'' and inserting ``2013, and 2014''.
    (b) Effective Date.--The amendment made by this section shall apply 
to obligations issued after December 31, 2013.

SEC. 121. EXTENSION OF CLASSIFICATION OF CERTAIN RACE HORSES AS 3-YEAR 
              PROPERTY.

    (a) In General.--Clause (i) of section 168(e)(3)(A) is amended--
            (1) by striking ``January 1, 2014'' in subclause (I) and 
        inserting ``January 1, 2015'', and
            (2) by striking ``December 31, 2013'' in subclause (II) and 
        inserting ``December 31, 2014''.
    (b) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2013.

SEC. 122. 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, 2014'' and 
inserting ``January 1, 2015''.
    (b) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2013.

SEC. 123. 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, 2013'' and inserting ``December 31, 2014''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2013.

SEC. 124. 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, 2013'' and inserting ``December 31, 2014''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2013.

SEC. 125. EXTENSION OF BONUS DEPRECIATION.

    (a) In General.--Paragraph (2) of section 168(k) is amended--
            (1) by striking ``January 1, 2015'' in subparagraph (A)(iv) 
        and inserting ``January 1, 2016'', and
            (2) by striking ``January 1, 2014'' each place it appears 
        and inserting ``January 1, 2015''.
    (b) Special Rule for Federal Long-Term Contracts.--Clause (ii) of 
section 460(c)(6)(B) is amended by striking ``January 1, 2014 (January 
1, 2015'' and inserting ``January 1, 2015 (January 1, 2016''.
    (c) Extension of Election to Accelerate the AMT Credit in Lieu of 
Bonus Depreciation.--
            (1) In general.--Subclause (II) of section 
        168(k)(4)(D)(iii) is amended by striking ``January 1, 2014'' 
        and inserting ``January 1, 2015''.
            (2) Round 4 extension property.--Paragraph (4) of section 
        168(k) is amended by adding at the end the following new 
        subparagraph:
                    ``(K) Special rules for round 4 extension 
                property.--
                            ``(i) In general.--In the case of round 4 
                        extension property, in applying this paragraph 
                        to any taxpayer--
                                    ``(I) the limitation described in 
                                subparagraph (B)(i) and the business 
                                credit increase amount under 
                                subparagraph (E)(iii) thereof shall not 
                                apply, and
                                    ``(II) the bonus depreciation 
                                amount, maximum amount, and maximum 
                                increase amount shall be computed 
                                separately from amounts computed with 
                                respect to eligible qualified property 
                                which is not round 4 extension 
                                property.
                            ``(ii) Election.--
                                    ``(I) A taxpayer who has an 
                                election in effect under this paragraph 
                                for round 3 extension property shall be 
                                treated as having an election in effect 
                                for round 4 extension property unless 
                                the taxpayer elects to not have this 
                                paragraph apply to round 4 extension 
                                property.
                                    ``(II) A taxpayer who does not have 
                                an election in effect under this 
                                paragraph for round 3 extension 
                                property may elect to have this 
                                paragraph apply to round 4 extension 
                                property.
                            ``(iii) Round 4 extension property.--For 
                        purposes of this subparagraph, the term `round 
                        4 extension property' means property which is 
                        eligible qualified property solely by reason of 
                        the extension of the application of the special 
                        allowance under paragraph (1) pursuant to the 
                        amendments made by section 125(a) of the Tax 
                        Increase Prevention Act of 2014 (and the 
                        application of such extension to this paragraph 
                        pursuant to the amendment made by section 
                        125(c) of such Act).''.
    (d) Conforming Amendments.--
            (1) The heading for subsection (k) of section 168 is 
        amended by striking ``January 1, 2014'' and inserting ``January 
        1, 2015''.
            (2) The heading for clause (ii) of section 168(k)(2)(B) is 
        amended by striking ``pre-january 1, 2014'' and inserting 
        ``pre-january 1, 2015''.
            (3) Subparagraph (C) of section 168(n)(2) is amended by 
        striking ``January 1, 2014'' and inserting ``January 1, 2015''.
            (4) Subparagraph (D) of section 1400L(b)(2) is amended by 
        striking ``January 1, 2014'' and inserting ``January 1, 2015''.
            (5) Subparagraph (B) of section 1400N(d)(3) is amended by 
        striking ``January 1, 2014'' and inserting ``January 1, 2015''.
    (e) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2013, in taxable 
years ending after such date.

SEC. 126. 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, 2013'' and inserting ``December 31, 2014''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made after December 31, 2013.

SEC. 127. 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 ``beginning in 2010, 2011, 2012, or 
                2013'' in subparagraph (B) and inserting ``beginning 
                after 2009 and before 2015'', and
                    (B) by striking ``2013'' in subparagraph (C) and 
                inserting ``2014''.
            (2) Reduction in limitation.--Section 179(b)(2) is 
        amended--
                    (A) by striking ``beginning in 2010, 2011, 2012, or 
                2013'' in subparagraph (B) and inserting ``beginning 
                after 2009 and before 2015'', and
                    (B) by striking ``2013'' in subparagraph (C) and 
                inserting ``2014''.
    (b) Computer Software.--Section 179(d)(1)(A)(ii) is amended by 
striking ``2014'' and inserting ``2015''.
    (c) Election.--Section 179(c)(2) is amended by striking ``2014'' 
and inserting ``2015''.
    (d) Special Rules for Treatment of Qualified Real Property.--
            (1) In general.--Section 179(f)(1) is amended by striking 
        ``beginning in 2010, 2011, 2012, or 2013'' and inserting 
        ``beginning after 2009 and before 2015''.
            (2) Carryover limitation.--
                    (A) In general.--Section 179(f)(4) is amended by 
                striking ``2013'' each place it appears and inserting 
                ``2014''.
                    (B) Conforming amendment.--The heading of 
                subparagraph (C) of section 179(f)(4) is amended by 
                striking ``2011 and 2012'' and inserting ``2011, 2012, 
                and 2013''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2013.

SEC. 128. EXTENSION OF ELECTION TO EXPENSE MINE SAFETY EQUIPMENT.

    (a) In General.--Subsection (g) of section 179E is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2014''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2013.

SEC. 129. 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, 2013'' and inserting ``December 31, 2014''.
    (b) Effective Dates.--The amendment made by this section shall 
apply to productions commencing after December 31, 2013.

SEC. 130. 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 8 taxable years'' and inserting 
        ``first 9 taxable years'', and
            (2) by striking ``January 1, 2014'' and inserting ``January 
        1, 2015''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2013.

SEC. 131. 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, 2013'' and inserting ``December 31, 2014''.
    (b) Effective Date.--The amendment made by this section shall apply 
to payments received or accrued after December 31, 2013.

SEC. 132. EXTENSION OF TREATMENT OF CERTAIN DIVIDENDS OF REGULATED 
              INVESTMENT COMPANIES.

    (a) In General.--Paragraphs (1)(C)(v) and (2)(C)(v) of section 
871(k) are each amended by striking ``December 31, 2013'' and inserting 
``December 31, 2014''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2013.

SEC. 133. 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, 2013'' and inserting ``December 31, 2014''.
    (b) Effective Date.--
            (1) In general.--The amendment made by this section shall 
        take effect on January 1, 2014. 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, 
                2013, 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. 134. 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, 2014'' and inserting ``January 
        1, 2015'', and
            (2) by striking ``December 31, 2013'' and inserting 
        ``December 31, 2014''.
    (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, 2014'' and inserting 
``January 1, 2015''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years of foreign corporations beginning after December 
31, 2013, and to taxable years of United States shareholders with or 
within which any such taxable year of such foreign corporation ends.

SEC. 135. 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, 2014'' and inserting ``January 1, 2015''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years of foreign corporations beginning after December 31, 
2013, and to taxable years of United States shareholders with or within 
which such taxable years of foreign corporations end.

SEC. 136. 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, 2014'' and inserting ``January 
        1, 2015'', and
            (2) by striking ``and 2013'' in the heading and inserting 
        ``2013, and 2014''.
    (b) Effective Date.--The amendments made by this section shall 
apply to stock acquired after December 31, 2013.

SEC. 137. 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, 2013'' and inserting ``December 31, 2014''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made in taxable years beginning after December 31, 
2013.

SEC. 138. EXTENSION OF REDUCTION IN S-CORPORATION RECOGNITION PERIOD 
              FOR BUILT-IN GAINS TAX.

    (a) In General.--Subparagraph (C) of section 1374(d)(7) is 
amended--
            (1) by striking ``2012 or 2013'' and inserting ``2012, 
        2013, or 2014'', and
            (2) by striking ``2012 and 2013'' in the heading and 
        inserting ``2012, 2013, and 2014''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2013.

SEC. 139. EXTENSION OF EMPOWERMENT ZONE TAX INCENTIVES.

    (a) In General.--Clause (i) of section 1391(d)(1)(A) is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2014''.
    (b) 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.
    (c) Effective Dates.--The amendment made by this section shall 
apply to periods after December 31, 2013.

SEC. 140. 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, 2014'' and inserting ``January 1, 2015''.
    (b) Effective Date.--The amendment made by this section shall apply 
to distilled spirits brought into the United States after December 31, 
2013.

SEC. 141. EXTENSION OF AMERICAN SAMOA ECONOMIC DEVELOPMENT CREDIT.

    (a) In General.--Subsection (d) of section 119 of division A of the 
Tax Relief and Health Care Act of 2006 is amended--
            (1) by striking ``January 1, 2014'' each place it appears 
        and inserting ``January 1, 2015'',
            (2) by striking ``first 8 taxable years'' in paragraph (1) 
        and inserting ``first 9 taxable years'', and
            (3) by striking ``first 2 taxable years'' in paragraph (2) 
        and inserting ``first 3 taxable years''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2013.

                    Subtitle C--Energy Tax Extenders

SEC. 151. EXTENSION OF CREDIT FOR NONBUSINESS ENERGY PROPERTY.

    (a) In General.--Paragraph (2) of section 25C(g) is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2014''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2013.

SEC. 152. EXTENSION OF SECOND GENERATION BIOFUEL PRODUCER CREDIT.

    (a) In General.--Clause (i) of section 40(b)(6)(J) is amended by 
striking ``January 1, 2014'' and inserting ``January 1, 2015''.
    (b) Effective Date.--The amendment made by this section shall apply 
to qualified second generation biofuel production after December 31, 
2013.

SEC. 153. 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, 
2013'' and inserting ``December 31, 2014''.
    (b) Effective Date.--The amendment made by this section shall apply 
to fuel sold or used after December 31, 2013.

SEC. 154. 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 ``8-year period'' each place it appears and inserting ``9-
year period''.
    (b) Effective Date.--The amendment made by this section shall apply 
to coal produced after December 31, 2013.

SEC. 155. EXTENSION OF CREDITS WITH RESPECT TO FACILITIES PRODUCING 
              ENERGY FROM CERTAIN RENEWABLE RESOURCES.

    (a) In General.--The following provisions of section 45(d) are each 
amended by striking ``January 1, 2014'' each place it appears and 
inserting ``January 1, 2015'':
            (1) Paragraph (1).
            (2) Paragraph (2)(A).
            (3) Paragraph (3)(A).
            (4) Paragraph (4)(B).
            (5) Paragraph (6).
            (6) Paragraph (7).
            (7) Paragraph (9).
            (8) Paragraph (11)(B).
    (b) Extension of Election to Treat Qualified Facilities as Energy 
Property.--Clause (ii) of section 48(a)(5)(C) is amended by striking 
``January 1, 2014'' and inserting ``January 1, 2015''.
    (c) Effective Dates.--The amendments made by this section shall 
take effect on January 1, 2014.

SEC. 156. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT NEW HOMES.

    (a) In General.--Subsection (g) of section 45L is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2014''.
    (b) Effective Date.--The amendment made by this section shall apply 
to homes acquired after December 31, 2013.

SEC. 157. EXTENSION OF SPECIAL ALLOWANCE FOR SECOND GENERATION BIOFUEL 
              PLANT PROPERTY.

    (a) In General.--Subparagraph (D) of section 168(l)(2) is amended 
by striking ``January 1, 2014'' and inserting ``January 1, 2015''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2013.

SEC. 158. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.

    (a) In General.--Subsection (h) of section 179D is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2014''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2013.

SEC. 159. 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, 2014'' and inserting ``January 1, 2015''.
    (b) Effective Date.--The amendment made by this section shall apply 
to dispositions after December 31, 2013.

SEC. 160. EXTENSION OF EXCISE TAX CREDITS RELATING TO CERTAIN FUELS.

    (a) 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, 2013'' and inserting ``December 31, 2014''.
            (2) Subparagraph (B) of section 6427(e)(6) is amended by 
        striking ``December 31, 2013'' and inserting ``December 31, 
        2014''.
    (b) Extension of Alternative Fuels Excise Tax Credits.--
            (1) In general.--Sections 6426(d)(5) and 6426(e)(3) are 
        each amended by striking ``December 31, 2013'' and inserting 
        ``December 31, 2014''.
            (2) Outlay payments for alternative fuels.--Subparagraph 
        (C) of section 6427(e)(6) is amended by striking ``December 31, 
        2013'' and inserting ``December 31, 2014''.
    (c) Extension of Alternative Fuels Excise Tax Credits Relating to 
Liquefied Hydrogen.--
            (1) In general.--Sections 6426(d)(5) and 6426(e)(3), as 
        amended by subsection (b), are each amended by striking 
        ``(September 30, 2014 in the case of any sale or use involving 
        liquefied hydrogen)''.
            (2) Outlay payments for alternative fuels.--Paragraph (6) 
        of section 6427(e) is amended--
                    (A) by striking ``except as provided in 
                subparagraph (D), any'' in subparagraph (C), as amended 
                by this Act, and inserting ``any'',
                    (B) by striking the comma at the end of 
                subparagraph (C) and inserting ``, and'', and
                    (C) by striking subparagraph (D) and redesignating 
                subparagraph (E) as subparagraph (D).
    (d) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to fuel sold or 
        used after December 31, 2013.
            (2) Liquefied hydrogen.--The amendments made by subsection 
        (c) shall apply to fuel sold or used after September 30, 2014.
    (e) Special Rule for Certain Periods During 2014.--Notwithstanding 
any other provision of law, in the case of--
            (1) any biodiesel mixture credit properly determined under 
        section 6426(c) of the Internal Revenue Code of 1986 for 
        periods after December 31, 2013, and before the date of the 
        enactment of this Act, and
            (2) any alternative fuel credit properly determined under 
        section 6426(d) of such Code for such periods,
such credit shall be allowed, and any refund or payment attributable to 
such credit (including any payment under section 6427(e) of such Code) 
shall be made, only in such manner as the Secretary of the Treasury (or 
the Secretary's delegate) shall provide. Such Secretary shall issue 
guidance within 30 days after the date of the enactment of this Act 
providing for a one-time submission of claims covering periods 
described in the preceding sentence. Such guidance shall provide for a 
180-day period for the submission of such claims (in such manner as 
prescribed by such Secretary) to begin not later than 30 days after 
such guidance is issued. Such claims shall be paid by such Secretary 
not later than 60 days after receipt. If such Secretary has not paid 
pursuant to a claim filed under this subsection within 60 days after 
the date of the filing of such claim, the claim shall be paid with 
interest from such date determined by using the overpayment rate and 
method under section 6621 of such Code.

SEC. 161. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL VEHICLE REFUELING 
              PROPERTY.

    (a) In General.--Subsection (g) of section 30C is amended by 
striking ``placed in service'' and all that follows and inserting 
``placed in service after December 31, 2014.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2013.

Subtitle D--Extenders Relating to Multiemployer Defined Benefit Pension 
                                 Plans

SEC. 171. EXTENSION OF AUTOMATIC EXTENSION OF AMORTIZATION PERIODS.

    (a) In General.--Subparagraph (C) of section 431(d)(1) is amended 
by striking ``December 31, 2014'' and inserting ``December 31, 2015''.
    (b) Amendment to Employee Retirement Income Security Act of 1974.--
Subparagraph (C) of section 304(d)(1) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1084(d)(1)(C)) is amended by striking 
``December 31, 2014'' and inserting ``December 31, 2015''.
    (c) Effective Date.--The amendments made by this section shall 
apply to applications submitted under section 431(d)(1)(A) of the 
Internal Revenue Code of 1986 and section 304(d)(1)(C) of the Employee 
Retirement Income Security Act of 1974 after December 31, 2014.

SEC. 172. EXTENSION OF SHORTFALL FUNDING METHOD AND ENDANGERED AND 
              CRITICAL RULES.

    (a) In General.--Paragraphs (1) and (2) of section 221(c) of the 
Pension Protection Act of 2006 are each amended by striking ``December 
31, 2014'' and inserting ``December 31, 2015''.
    (b) Conforming Amendment.--Paragraph (2) of section 221(c) of the 
Pension Protection Act of 2006 is amended by striking ``January 1, 
2015'' and inserting ``January 1, 2016''.
    (c) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2014.

                    TITLE II--TECHNICAL CORRECTIONS

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Tax Technical Corrections Act of 
2014''.

SEC. 202. AMENDMENTS RELATING TO AMERICAN TAXPAYER RELIEF ACT OF 2012.

    (a) Amendment Relating to Section 101(b).--Subclause (I) of section 
642(b)(2)(C)(i) is amended by striking ``section 151(d)(3)(C)(iii)'' 
and inserting ``section 68(b)(1)(C)''.
    (b) Amendment Relating to Section 102.--Clause (ii) of section 
911(f)(2)(B) is amended by striking ``described in section 1(h)(1)(B) 
shall be treated as a reference to such excess as determined'' and 
inserting ``described in section 1(h)(1)(B), and the reference in 
section 55(b)(3)(C)(ii) to the excess described in section 
1(h)(1)(C)(ii), shall each be treated as a reference to each such 
excess as determined''.
    (c) Amendments Relating to Section 104.--
            (1) Clause (ii) of section 55(d)(4)(B) is amended by 
        inserting ``subparagraphs (A), (B), and (D) of'' before 
        ``paragraph (1)''.
            (2) Subparagraph (C) of section 55(d)(4) is amended by 
        striking ``increase'' and inserting ``increased amount''.
    (d) Amendments Relating to Section 310.--Clause (iii) of section 
6431(f)(3)(A) is amended--
            (1) by striking ``2011'' and inserting ``years after 
        2010'', and
            (2) by striking ``of such allocation'' and inserting ``of 
        any such allocation''.
    (e) Amendment Relating to Section 331.--Clause (iii) of section 
168(k)(4)(J) is amended by striking ``any taxable year'' and inserting 
``its first taxable year''.
    (f) Effective Date.--The amendments made by this section shall take 
effect as if included in the provision of the American Taxpayer Relief 
Act of 2012 to which they relate.

SEC. 203. AMENDMENT RELATING TO MIDDLE CLASS TAX RELIEF AND JOB 
              CREATION ACT OF 2012.

    (a) Amendment Relating to Section 7001.--Paragraph (1) of section 
7001 of the Middle Class Tax Relief and Job Creation Act of 2012 is 
amended by striking ``201(b)'' and inserting ``202(b)''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect as if included in section 7001 of the Middle Class Tax 
Relief and Job Creation Act of 2012.

SEC. 204. AMENDMENT RELATING TO FAA MODERNIZATION AND REFORM ACT OF 
              2012.

    (a) Amendment Relating to Section 1107.--Section 4281 is amended to 
read as follows:

``SEC. 4281. SMALL AIRCRAFT ON NONESTABLISHED LINES.

    ``(a) In General.--The taxes imposed by sections 4261 and 4271 
shall not apply to transportation by an aircraft having a maximum 
certificated takeoff weight of 6,000 pounds or less, except when such 
aircraft is operated on an established line or when such aircraft is a 
jet aircraft.
    ``(b) Maximum Certificated Takeoff Weight.--For purposes of this 
section, the term `maximum certificated takeoff weight' means the 
maximum such weight contained in the type certificate or airworthiness 
certificate.
    ``(c) Sightseeing.--For purposes of this section, an aircraft shall 
not be considered as operated on an established line at any time during 
which such aircraft is being operated on a flight the sole purpose of 
which is sightseeing.
    ``(d) Jet Aircraft.--For purposes of this section, the term `jet 
aircraft' shall not include any aircraft which is a rotorcraft or 
propeller aircraft.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect as if included in section 1107 of the FAA Modernization and 
Reform Act of 2012.

SEC. 205. AMENDMENTS RELATING TO REGULATED INVESTMENT COMPANY 
              MODERNIZATION ACT OF 2010.

    (a) Amendments Relating to Section 101.--
            (1) Subsection (c) of section 101 of the Regulated 
        Investment Company Modernization Act of 2010 is amended--
                    (A) by striking ``paragraph (2)'' in paragraph (1) 
                and inserting ``paragraphs (2) and (3)'', and
                    (B) by adding at the end the following new 
                paragraph:
            ``(3) Excise tax.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), for purposes of section 4982 of the 
                Internal Revenue Code of 1986, paragraphs (1) and (2) 
                shall apply by substituting `the 1-year periods taken 
                into account under subsection (b)(1)(B) of such section 
                with respect to calendar years beginning after December 
                31, 2010' for `taxable years beginning after the date 
                of the enactment of this Act'.
                    ``(B) Election.--A regulated investment company may 
                elect to apply subparagraph (A) by substituting `2011' 
                for `2010'. Such election shall be made at such time 
                and in such form and manner as the Secretary of the 
                Treasury (or the Secretary's delegate) shall 
                prescribe.''.
            (2) The first sentence of paragraph (2) of section 852(c) 
        is amended--
                    (A) by striking ``and without regard to'' and 
                inserting ``, without regard to'', and
                    (B) by inserting ``, and without regard to any 
                capital loss arising on the first day of the taxable 
                year by reason of clauses (ii) and (iii) of section 
                1212(a)(3)(A)'' before the period at the end.
    (b) Amendment Relating to Section 304.--Paragraph (1) of section 
855(a) is amended by inserting ``on or'' before ``before''.
    (c) Amendments Relating to Section 308.--
            (1) Paragraph (8) of section 852(b) is amended by 
        redesignating subparagraph (E) as subparagraph (G) and by 
        striking subparagraphs (C) and (D) and inserting the following 
        new subparagraphs:
                    ``(C) Post-october capital loss.--For purposes of 
                this paragraph, the term `post-October capital loss' 
                means--
                            ``(i) any net capital loss attributable to 
                        the portion of the taxable year after October 
                        31, or
                            ``(ii) if there is no such loss--
                                    ``(I) any net long-term capital 
                                loss attributable to such portion of 
                                the taxable year, or
                                    ``(II) any net short-term capital 
                                loss attributable to such portion of 
                                the taxable year.
                    ``(D) Late-year ordinary loss.--For purposes of 
                this paragraph, the term `late-year ordinary loss' 
                means the sum of any post-October specified loss and 
                any post-December ordinary loss.
                    ``(E) Post-october specified loss.--For purposes of 
                this paragraph, the term `post-October specified loss' 
                means the excess (if any) of--
                            ``(i) the specified losses (as defined in 
                        section 4982(e)(5)(B)(ii)) attributable to the 
                        portion of the taxable year after October 31, 
                        over
                            ``(ii) the specified gains (as defined in 
                        section 4982(e)(5)(B)(i)) attributable to such 
                        portion of the taxable year.
                    ``(F) Post-december ordinary loss.--For purposes of 
                this paragraph, the term `post-December ordinary loss' 
                means the excess (if any) of--
                            ``(i) the ordinary losses not described in 
                        subparagraph (E)(i) and attributable to the 
                        portion of the taxable year after December 31, 
                        over
                            ``(ii) the ordinary income not described in 
                        subparagraph (E)(ii) and attributable to such 
                        portion of the taxable year.''.
            (2) Subparagraph (G) of section 852(b)(8), as so 
        redesignated, is amended by striking ``, (D)(i)(I), and 
        (D)(ii)(I)'' and inserting ``and (E)''.
            (3) The first sentence of paragraph (2) of section 852(c), 
        as amended by subsection (a), is amended--
                    (A) by striking ``, and without regard to'' and 
                inserting ``, without regard to'', and
                    (B) by inserting ``, and with such other 
                adjustments as the Secretary may prescribe'' before the 
                period at the end.
    (d) Amendments Relating to Section 402.--
            (1) Subparagraph (B) of section 4982(e)(6) is amended by 
        inserting before the period at the end the following: ``or 
        which determines income by reference to the value of an item on 
        the last day of the taxable year''.
            (2) Subparagraph (A) of section 4982(e)(7) is amended by 
        striking ``such company'' and all that follows through ``any 
        net ordinary loss'' and inserting ``such company may elect to 
        determine its ordinary income and net ordinary loss (as defined 
        in paragraph (2)(C)(ii)) for the calendar year without regard 
        to any portion of any net ordinary loss''.
    (e) Clerical Amendment Relating to Section 201.--Subparagraph (A) 
of section 851(d)(2) is amended by inserting ``of this paragraph'' 
after ``subparagraph (B)(i)''.
    (f) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall take effect as if 
        included in the provision of the Regulated Investment Company 
        Modernization Act of 2010 to which they relate.
            (2) Savings provision.--In the case of an election by a 
        regulated investment company under section 852(b)(8) of the 
        Internal Revenue Code of 1986 with respect to any taxable year 
        beginning before the date of the enactment of this Act, such 
        company may treat the amendments made by paragraphs (1) and (2) 
        of subsection (c) as not applying with respect to any such 
        election.

SEC. 206. AMENDMENTS RELATING TO TAX RELIEF, UNEMPLOYMENT INSURANCE 
              REAUTHORIZATION, AND JOB CREATION ACT OF 2010.

    (a) Amendment Relating to Section 103.--Clause (ii) of section 
32(b)(3)(B) is amended by striking ``in 2010'' and inserting ``after 
2009''.
    (b) Clerical Amendments Relating to Section 302.--
            (1) Paragraph (1) of section 2801(a) is amended by striking 
        ``(or, if greater, the highest rate of tax specified in the 
        table applicable under section 2502(a) as in effect on the 
        date)''.
            (2) Subsection (f) of section 302 of the Tax Relief, 
        Unemployment Insurance Reauthorization, and Job Creation Act of 
        2010 is amended by striking ``subsection'' and inserting 
        ``section''.
    (c) Amendments Relating to Section 753.--Subparagraph (A) of 
section 1397B(b)(1) is amended by striking ``and'' at the end of clause 
(ii), by striking the period at the end of clause (iii) and inserting 
``, and'', and by adding at the end the following new clause:
                            ``(iv) the day after the date set forth in 
                        section 1391(d)(1)(A)(i) were substituted for 
                        `January 1, 2010' each place it appears.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect as if included in the provisions of the Tax Relief, Unemployment 
Insurance Reauthorization, and Job Creation Act of 2010 to which they 
relate.

SEC. 207. AMENDMENTS RELATING TO CREATING SMALL BUSINESS JOBS ACT OF 
              2010.

    (a) Amendments Relating to Section 2102.--
            (1) Subsection (h) of section 2102 of the Creating Small 
        Business Jobs Act of 2010 is amended by inserting ``, and payee 
        statements required to be furnished,'' after ``information 
        returns required to be filed''.
            (2) Paragraphs (1) and (2) of subsection (b), and 
        subsection (c)(1)(C), of section 6722 are each amended by 
        striking ``the required filing date'' and inserting ``the date 
        prescribed for furnishing such statement''.
            (3) Subparagraph (B) of section 6722(c)(2) is amended by 
        striking ``filed'' and inserting ``furnished''.
    (b) Effective Date.--The amendments made by this section shall take 
effect as if included in the provision of the Creating Small Business 
Jobs Act of 2010 to which they relate.

SEC. 208. CLERICAL AMENDMENT RELATING TO HIRING INCENTIVES TO RESTORE 
              EMPLOYMENT ACT.

    (a) Amendment Relating to Section 512.--Paragraph (1) of section 
512(a) of the Hiring Incentives to Restore Employment Act is amended by 
striking ``after paragraph (6)'' and inserting ``after paragraph (5)''.
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in the provision of the Hiring Incentives to 
Restore Employment Act to which it relates.

SEC. 209. AMENDMENTS RELATING TO AMERICAN RECOVERY AND REINVESTMENT TAX 
              ACT OF 2009.

    (a) Amendment Relating to Section 1003.--Paragraph (4) of section 
24(d) is amended to read as follows:
            ``(4) Special rule for certain years.--In the case of any 
        taxable year beginning after 2008 and before 2018, paragraph 
        (1)(B)(i) shall be applied by substituting `$3,000' for 
        `$10,000'.''.
    (b) Amendment Relating to Section 1004.--Paragraph (3) of section 
25A(i) is amended by striking ``Subsection (f)(1)(A) shall be applied'' 
and inserting ``For purposes of determining the Hope Scholarship 
Credit, subsection (f)(1)(A) shall be applied''.
    (c) Amendments Relating to Section 1008.--
            (1) Paragraph (6) of section 164(b) is amended by striking 
        subparagraph (E) and by redesignating subparagraphs (F) and (G) 
        as subparagraphs (E) and (F), respectively.
            (2) Subparagraphs (E) and (F) of section 164(b)(6), as so 
        redesignated, are each amended by striking ``This paragraph'' 
        and inserting ``Subsection (a)(6)''.
    (d) Amendment Relating to Section 1104.--Subparagraph (A) of 
section 48(d)(3) is amended by inserting ``or alternative minimum 
taxable income'' after ``includible in the gross income''.
    (e) Amendments Relating to Section 1141.--
            (1) Subsection (f) of section 30D is amended--
                    (A) by inserting ``(determined without regard to 
                subsection (c))'' before the period at the end of 
                paragraph (1), and
                    (B) by inserting ``(determined without regard to 
                subsection (c))'' before the period at the end of 
                paragraph (2).
            (2) Paragraph (3) of section 30D(f) is amended by adding at 
        the end the following: ``For purposes of subsection (c), 
        property to which this paragraph applies shall be treated as of 
        a character subject to an allowance for depreciation.''.
    (f) Amendments Relating to Section 1142.--
            (1) Subsection (b) of section 38 is amended by striking 
        ``plus'' at the end of paragraph (35), by redesignating 
        paragraph (36) as paragraph (37), and by inserting after 
        paragraph (35) the following new paragraph:
            ``(36) the portion of the qualified plug-in electric 
        vehicle credit to which section 30(c)(1) applies, plus''.
            (2)(A) Subsection (e) of section 30 is amended--
                    (i) by inserting ``(determined without regard to 
                subsection (c))'' before the period at the end of 
                paragraph (1), and
                    (ii) by inserting ``(determined without regard to 
                subsection (c))'' before the period at the end of 
                paragraph (2).
            (B) Paragraph (3) of section 30(e) is amended by adding at 
        the end the following: ``For purposes of subsection (c), 
        property to which this paragraph applies shall be treated as of 
        a character subject to an allowance for depreciation.''.
    (g) Amendment Relating to Section 1302.--Paragraph (3) of section 
48C(b) is amended by inserting ``as the qualified investment'' after 
``The amount which is treated''.
    (h) Amendments Related to Section 1541.--
            (1) Paragraph (2) of section 853A(a) is amended by 
        inserting ``(determined after the application of this 
        section)'' before the comma at the end.
            (2) Subsection (a) of section 853A is amended--
                    (A) by striking ``with respect to credits'' and 
                inserting ``with respect to some or all of the 
                credits'', and
                    (B) by inserting ``(determined without regard to 
                this section and sections 54(c), 54A(c)(1), 54AA(c)(1), 
                and 1397E(c))'' after ``credits allowable''.
            (3) Subsection (b) of section 853A is amended to read as 
        follows:
    ``(b) Effect of Election.--If the election provided in subsection 
(a) is in effect with respect to any credits for any taxable year--
            ``(1) the regulated investment company--
                    ``(A) shall not be allowed such credits,
                    ``(B) shall include in gross income (as interest) 
                for such taxable year the amount which would have been 
                so included with respect to such credits had the 
                application of this section not been elected,
                    ``(C) shall include in earnings and profits the 
                amount so included in gross income, and
                    ``(D) shall be treated as making one or more 
                distributions of money with respect to its stock equal 
                to the amount of such credits on the date or dates (on 
                or after the applicable date for any such credit) 
                during such taxable year (or following the close of the 
                taxable year pursuant  to section 855)  selected by the 
                company, and
            ``(2) each shareholder of such investment company shall--
                    ``(A) be treated as receiving such shareholder's 
                proportionate share of any distribution of money which 
                is treated as made by such investment company under 
                paragraph (1)(D), and
                    ``(B) be allowed credits against the tax imposed by 
                this chapter equal to the amount of such distribution, 
                subject to the provisions of this title applicable to 
                the credit involved.''.
            (4) Subsection (c) of section 853A is amended to read as 
        follows:
    ``(c) Notice to Shareholders.--The amount treated as a distribution 
of money received by a shareholder under subsection (b)(2)(A) (and as 
credits allowed to such shareholder under subsection (b)(2)(B)) shall 
not exceed the amount so reported by the regulated investment company 
in a written statement furnished to such shareholder.''.
            (5) Clause (ii) of section 853A(e)(1)(A) is amended by 
        inserting ``other than a qualified bond described in section 
        54AA(g)'' after ``as defined in section 54AA(d))''.
    (i) Amendments Relating to Section 2202.--
            (1) Subparagraph (A) of section 2202(b)(1) of division B of 
        the American Recovery and Reinvestment Act of 2009 is amended 
        by inserting ``political subdivision of a State,'' after ``any 
        State,''.
            (2) Section 2202 of division B of the American Recovery and 
        Reinvestment Act of 2009 is amended by adding at the end the 
        following new subsection:
    ``(e) Treatment of Possessions.--
            ``(1) Payments to mirror code possessions.--The Secretary 
        of the Treasury shall pay to each possession of the United 
        States with a mirror code tax system amounts equal to the loss 
        to that possession by reason of credits allowed under 
        subsection (a) with respect to taxable years beginning in 2009. 
        Such amounts shall be determined by the Secretary of the 
        Treasury based on information provided by the government of the 
        respective possession.
            ``(2) Coordination with credit allowed against united 
        states income taxes.--No credit shall be allowed against United 
        States income taxes for any taxable year under this section to 
        any person to whom a credit is allowed against taxes imposed by 
        the possession by reason of the credit allowed under subsection 
        (a) for such taxable year.
            ``(3) Definitions and special rules.--
                    ``(A) Possession of the united states.--For 
                purposes of this subsection, the term `possession of 
                the United States' includes the Commonwealth of the 
                Northern Mariana Islands.
                    ``(B) Mirror code tax system.--For purposes of this 
                subsection, the term `mirror code tax system' means, 
                with respect to any possession of the United States, 
                the income tax system of such possession if the income 
                tax liability of the residents of such possession under 
                such system is determined by reference to the income 
                tax laws of the United States as if such possession 
                were the United States.
                    ``(C) Treatment of payments.--For purposes of 
                section 1324(b)(2) of title 31, United States Code, the 
                payments under this subsection shall be treated in the 
                same manner as a refund due from the credit allowed 
                under section 36A of the Internal Revenue Code of 1986 
                (as added by this Act).''.
    (j) Clerical Amendments.--
            (1) Amendment relating to section 1131.--Paragraph (2) of 
        section 45Q(d) is amended by striking ``Administrator of the 
        Environmental Protection Agency'' and all that follows through 
        ``shall establish'' and inserting ``Administrator of the 
        Environmental Protection Agency, the Secretary of Energy, and 
        the Secretary of the Interior, shall establish''.
            (2) Amendment relating to section 1141.--Paragraph (37) of 
        section 1016(a) is amended by striking ``section 30D(e)(4)'' 
        and inserting ``section 30D(f)(1)''.
            (3) Amendment relating to section 3001.--Subparagraph (A) 
        of section 3001(a)(14) of the American Recovery and 
        Reinvestment Act of 2009 is amended by striking ``is amended by 
        redesignating paragraph (9) as paragraph (10)'' and inserting 
        ``, as amended by this Act, is amended by redesignating 
        paragraphs (9) and (10) as paragraphs (10) and (11), 
        respectively,''.
    (k) Effective Date.--The amendments made by this section shall take 
effect as if included in the provisions of the American Recovery and 
Reinvestment Tax Act of 2009 to which they relate.

SEC. 210. AMENDMENTS RELATING TO ENERGY IMPROVEMENT AND EXTENSION ACT 
              OF 2008.

    (a) Amendment Relating to Section 108.--Subparagraph (E) of section 
45K(g)(2) is amended to read as follows:
                    ``(E) Coordination with section 45.--No credit 
                shall be allowed with respect to any coke or coke gas 
                which is produced using steel industry fuel (as defined 
                in section 45(c)(7)) as feedstock if a credit is 
                allowed to any taxpayer under section 45 with respect 
                to the production of such steel industry fuel.''.
    (b) Amendment Relating to Section 113.--Paragraph (1) of section 
113(b) of the Energy Improvement and Extension Act of 2008 is amended 
by adding at the end the following new subparagraph:
                    ``(F) Trust fund.--The term `Trust Fund' means the 
                Black Lung Disability Trust Fund established under 
                section 9501 of the Internal Revenue Code of 1986.''.
    (c) Amendments Relating to Section 306.--
            (1) Clause (ii) of section 168(i)(18)(A) is amended by 
        striking ``10 years'' and inserting ``16 years''.
            (2) Clause (ii) of section 168(i)(19)(A) is amended by 
        striking ``10 years'' and inserting ``16 years''.
    (d) Amendment Relating to Section 308.--Clause (i) of section 
168(m)(2)(B) is amended by striking ``section 168(k)'' and inserting 
``subsection (k) (determined without regard to paragraph (4) 
thereof)''.
    (e) Amendment Relating to Section 402.--Subparagraph (A) of section 
907(f)(4) is amended by striking ``this subsection shall be applied'' 
and all that follows through the period at the end and inserting the 
following: ``this subsection, as in effect on the day before the date 
of the enactment of the Energy Improvement and Extension Act of 2008, 
shall apply to unused oil and gas extraction taxes carried from such 
unused credit year to a taxable year beginning after December 31, 
2008.''.
    (f) Amendments Relating to Section 403.--
            (1) Subsection (c) of section 1012 is amended--
                    (A) by striking ``funds'' in the heading for 
                paragraph (2) and inserting ``regulated investment 
                companies'',
                    (B) by striking ``fund'' in the heading for 
                paragraph (2)(B), and
                    (C) by striking ``fund'' each place it appears in 
                paragraph (2) and inserting ``regulated investment 
                company''.
            (2) Paragraph (1) of section 1012(d) is amended--
                    (A) by striking ``December 31, 2010'' and inserting 
                ``December 31, 2011'', and
                    (B) by striking ``an open-end fund'' and inserting 
                ``a regulated investment company''.
            (3) Paragraph (3) of section 1012(d) is amended to read as 
        follows:
            ``(3) Separate accounts; election for treatment as single 
        account.--
                    ``(A) In general.--Rules similar to the rules of 
                subsection (c)(2) shall apply for purposes of this 
                subsection.
                    ``(B) Average basis method.--Notwithstanding 
                paragraph (1), in the case of an election under rules 
                similar to the rules of subsection (c)(2)(B) with 
                respect to stock held in connection with a dividend 
                reinvestment plan, the average basis method is 
                permissible with respect to all such stock without 
                regard to the date of the acquisition of such stock.''.
            (4) Subsection (g) of section 6045 is amended by adding at 
        the end the following new paragraph:
            ``(6) Special rule for certain stock held in connection 
        with dividend reinvestment plan.--For purposes of this 
        subsection, stock acquired before January 1, 2012, in 
        connection with a dividend reinvestment plan shall be treated 
        as stock described in clause (ii) of paragraph (3)(C) (unless 
        the broker with respect to such stock elects not to have this 
        paragraph apply with respect to such stock).''.
    (g) Clerical Amendments.--
            (1) Amendment relating to section 108.--Paragraph (2) of 
        section 45(b) is amended by striking ``$3 amount'' and 
        inserting ``$2 amount''.
            (2) Amendment relating to section 306.--
                    (A) Paragraph (5) of section 168(b) is amended by 
                striking ``(2)(C)'' and inserting ``(2)(D)''.
                    (B) The last sentence of section 168(k)(4)(C)(i) is 
                amended by striking ``(b)(2)(C)'' and inserting 
                ``(b)(2)(D)''.
    (h) Effective Date.--The amendments made by this section shall take 
effect as if included in the provisions of the Energy Improvement and 
Extension Act of 2008 to which they relate.

SEC. 211. AMENDMENTS RELATING TO TAX EXTENDERS AND ALTERNATIVE MINIMUM 
              TAX RELIEF ACT OF 2008.

    (a) Amendment Relating to Section 208.--Subsection (b) of section 
208 of the Tax Extenders and Alternative Minimum Tax Relief Act of 2008 
is amended to read as follows:
    ``(b) Effective Date.--
            ``(1) In general.--The amendment made by subsection (a) 
        shall take effect on January 1, 2008. 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 
        October 4, 2008.
            ``(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, 
                2007, and before October 4, 2008, 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.''.
    (b) Amendments Relating to Section 305.--Paragraphs (7)(B) and 
(8)(D) of section 168(e) are each amended by inserting ``which is not 
qualified leasehold improvement property'' after ``Property described 
in this paragraph''.
    (c) Clerical Amendments.--
            (1) Amendments relating to section 706.--
                    (A) Paragraph (2) of section 1033(h) is amended by 
                inserting ``is'' before ``compulsorily''.
                    (B) Subclause (II) of section 172(b)(1)(F)(ii) is 
                amended by striking ``subsection (h)(3)(C)(i)'' and 
                inserting ``section 165(h)(3)(C)(i)''.
                    (C) The heading for paragraph (1) of section 165(h) 
                is amended by striking ``$100'' and inserting 
                ``Dollar''.
            (2) Amendment relating to section 709.--Subsection (k) of 
        section 143 is amended by redesignating the second paragraph 
        (12) (relating to special rules for residences destroyed in 
        Federally declared disasters) as paragraph (13).
            (3) Amendment relating to section 712.--Section 712 of the 
        Tax Extenders and Alternative Minimum Tax Relief Act of 2008 is 
        amended by striking ``section 702(c)(1)(A)'' and inserting 
        ``section 702(b)(1)(A)''.
    (d) Effective Date.--The amendments made by this section shall take 
effect as if included in the provisions of the Tax Extenders and 
Alternative Minimum Tax Relief Act of 2008 to which they relate.

SEC. 212. CLERICAL AMENDMENTS RELATING TO HOUSING ASSISTANCE TAX ACT OF 
              2008.

    (a) Amendment Relating to Section 3002.--Paragraph (1) of section 
42(b) is amended by striking ``For purposes of this section, the term'' 
and inserting the following: ``For purposes of this section--
                    ``(A) In general.--The term''.
    (b) Amendment Relating to Section 3081.--Clause (iv) of section 
168(k)(4)(E) is amended by striking ``adjusted minimum tax'' and 
inserting ``adjusted net minimum tax''.
    (c) Amendment Relating to Section 3092.--Subsection (b) of section 
121 is amended by redesignating the second paragraph (4) (relating to 
exclusion of gain allocated to nonqualified use) as paragraph (5).
    (d) Effective Date.--The amendments made by this section shall take 
effect as if included in the provisions of the Housing Assistance Tax 
Act of 2008 to which they relate.

SEC. 213. AMENDMENTS AND PROVISION RELATING TO HEROES EARNINGS 
              ASSISTANCE AND RELIEF TAX ACT OF 2008.

    (a) Amendment Relating to Section 106.--Paragraph (2) of section 
106(c) of the Heroes Earnings Assistance and Relief Tax Act of 2008 is 
amended by striking ``substituting for'' and inserting ``substituting 
`June 17, 2008' for''.
    (b) Amendment Relating to Section 114.--Paragraph (1) of section 
125(h) is amended by inserting ``(and shall not fail to be treated as 
an accident or health plan)'' before ``merely''.
    (c) Clerical Amendments.--
            (1) Amendment relating to section 110.--Subparagraph (B) of 
        section 121(d)(12) is amended by inserting ``of paragraph (9)'' 
        after ``and (D)''.
            (2) Amendment relating to section 301.--Paragraph (2) of 
        section 877(e) is amended by striking ``subparagraph (A) or (B) 
        of''.
    (d) Effective Date.--The amendments made by this section shall take 
effect as if included in the provisions of the Heroes Earnings 
Assistance and Relief Tax Act of 2008 to which they relate.

SEC. 214. AMENDMENTS RELATING TO ECONOMIC STIMULUS ACT OF 2008.

    (a) Amendments Relating to Section 101.--Paragraph (2) of section 
6213(g) is amended--
            (1) by striking ``32, or 6428'' in subparagraph (L) and 
        inserting ``or 32'', and
            (2) by striking ``and'' at the end of subparagraph (O), by 
        striking the period at the end of subparagraph (P) and 
        inserting ``, and'', and by inserting after subparagraph (P) 
        the following new subparagraph:
                    ``(Q) an omission of a correct valid identification 
                number required under section 6428(h) (relating to 2008 
                recovery rebates for individuals) to be included on a 
                return.''.
    (b) Clerical Amendment Relating to Section 103.--Subclause (IV) of 
section 168(k)(2)(B)(i) is amended by striking ``clauses also apply'' 
and inserting ``clause also applies''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as if included in the provisions of the Economic Stimulus Act of 
2008 to which they relate.

SEC. 215. AMENDMENTS RELATING TO TAX TECHNICAL CORRECTIONS ACT OF 2007.

    (a) Amendment Relating to Section 4(c).--Paragraph (1) of section 
911(f) is amended by adding at the end the following flush sentence:
        ``For purposes of this paragraph, the amount excluded under 
        subsection (a) shall be reduced by the aggregate amount of any 
        deductions or exclusions disallowed under subsection (d)(6) 
        with respect to such excluded amount.''.
    (b) Clerical Amendment Relating to Section 11(g).--Clause (iv) of 
section 56(g)(4)(C) is amended by striking ``a cooperative described in 
section 927(a)(4)'' and inserting ``an organization to which part I of 
subchapter T (relating to tax treatment of cooperatives) applies which 
is engaged in the marketing of agricultural or horticultural 
products''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as if included in the provisions of the Tax Technical 
Corrections Act of 2007 to which they relate.

SEC. 216. AMENDMENT RELATING TO TAX RELIEF AND HEALTH CARE ACT OF 2006.

    (a) Amendment Relating to Section 105.--Subparagraph (B) of section 
45A(b)(1) is amended by adding at the end the following: ``If any 
portion of wages are taken into account under subsection (e)(1)(A) of 
section 51, the preceding sentence shall be applied by substituting `2-
year period' for `1-year period'.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in the provision of the Tax Relief and Health 
Care Act of 2006 to which it relates.

SEC. 217. AMENDMENT RELATING TO SAFE, ACCOUNTABLE, FLEXIBLE, EFFICIENT 
              TRANSPORTATION EQUITY ACT OF 2005: A LEGACY FOR USERS.

    (a) Amendment Relating to Section 11161.--Paragraph (1) of section 
9503(b) is amended by inserting before the period at the end the 
following: ``and taxes received under section 4081 shall be determined 
without regard to tax receipts attributable to the rate specified in 
section 4081(a)(2)(C)''.
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in the provision of the Safe, Accountable, 
Flexible, Efficient Transportation Equity Act of 2005: A Legacy for 
Users to which it relates.

SEC. 218. AMENDMENTS RELATING TO ENERGY TAX INCENTIVES ACT OF 2005.

    (a) Amendment Relating to Section 1341.--Subparagraph (B) of 
section 30B(h)(5) is amended by inserting ``(determined without regard 
to subsection (g))'' before the period at the end.
    (b) Amendment Relating to Section 1342.--Paragraph (1) of section 
30C(e) is amended to read as follows:
            ``(1) Reduction in basis.--For purposes of this subtitle, 
        the basis of any property for which a credit is allowable under 
        subsection (a) shall be reduced by the amount of such credit so 
        allowed (determined without regard to subsection (d)).''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as if included in the provision of the Energy Tax Incentives Act 
of 2005 to which it relates.

SEC. 219. AMENDMENTS RELATING TO AMERICAN JOBS CREATION ACT OF 2004.

    (a) Amendment Relating to Section 101.--Subsection (d) of section 
101 of the American Jobs Creation Act of 2004 is amended by adding at 
the end the following new paragraph:
            ``(3) Coordination with section 199.--This subsection shall 
        be applied without regard to any deduction allowable under 
        section 199.''.
    (b) Amendments Relating to Section 102.--Paragraph (3) of section 
199(b) is amended--
            (1) by inserting ``of a short taxable year or'' after ``in 
        cases'', and
            (2) by striking ``and dispositions'' and inserting ``, 
        dispositions, and short taxable years''.
    (c) Clerical Amendment Relating to Section 413.--Paragraph (7) of 
section 904(h) is amended by striking ``as ordinary income under 
section 1246 or''.
    (d) Effective Date.--The amendments made by this section shall take 
effect as if included in the provision of the American Jobs Creation 
Act of 2004 to which they relate.

SEC. 220. OTHER CLERICAL CORRECTIONS.

    (a) Paragraph (8) of section 30B(h) is amended by striking 
``vehicle)., except that'' and inserting ``vehicle), except that''.
    (b) Subparagraph (A) of section 38(c)(2) is amended by striking 
``credit credit'' and inserting ``credit''.
    (c) Section 46 is amended by adding a comma at the end of paragraph 
(4).
    (d) Subparagraph (E) of section 50(a)(2) is amended by inserting 
``, 48A(b)(3), 48B(b)(3), 48C(b)(2), or 48D(b)(4)'' after ``in section 
48(b)''.
    (e) Clause (i) of section 54A(d)(2)(A) is amended by striking ``100 
percent or more'' and inserting ``100 percent''.
    (f) Paragraph (2) of section 125(b) is amended by striking 
``statutory nontaxable benefits'' each place it appears and inserting 
``qualified benefits''.
    (g) Paragraph (2) of section 125(h) is amended by striking ``means, 
any'' and inserting ``means any''.
    (h) Subparagraph (F) of section 163(h)(4) is amended by striking 
``Veterans Administration or the Rural Housing Administration'' and 
inserting ``Department of Veterans Affairs or the Rural Housing 
Service''.
    (i) Subsection (a) of section 249 is amended by striking 
``1563(a)(1)'' and inserting ``1563(a)(1))''.
    (j) Paragraphs (8) and (10) of section 280F(d) are each amended by 
striking ``subsection (a)(2)'' and inserting ``subsection (a)(1)''.
    (k) Clause (iii) of section 402A(c)(4)(E) is amended by striking 
``403(b)(7)(A)(i)'' and inserting ``403(b)(7)(A)(ii)''.
    (l) Section 527 is amended--
            (1) by striking ``(2 U.S.C. 432(e))'' in subsection 
        (h)(2)(A)(i) and inserting ``(52 U.S.C. 30102(e))'', and
            (2) by striking ``(2 U.S.C. 431 et seq.)'' in subsections 
        (i)(6) and (j)(5)(A) and inserting ``(52 U.S.C. 30101 et 
        seq.)''.
    (m) Subsection (b) of section 858 is amended by striking 
``857(b)(8)'' and inserting ``857(b)(9)''.
    (n) Subparagraph (A) of section 1012(c)(2) is amended by striking 
``section 1012'' and inserting ``this section''.
    (o) The heading for section 1394(f) is amended by striking 
``Designated Under Section 1391(g)''.
    (p) Paragraphs (1) and (2)(A) of section 1394(f) are each amended 
by striking ``a new empowerment zone facility bond'' and inserting ``an 
empowerment zone facility bond''.
    (q) Clause (i) of section 1400N(c)(3)(A) is amended by striking 
``section 42(d)(5)(C)(iii)'' and inserting ``section 
42(d)(5)(B)(iii)''.
    (r) Subsections (e)(3)(B) and (f)(7)(B) of section 4943 are each 
amended by striking ``January 1, 1970'' and inserting ``January 1, 
1971''.
    (s) Paragraph (2) of section 4982(f) is amended by adding a comma 
at the end.
    (t) Paragraph (3) of section 6011(e) is amended by striking ``shall 
require than'' and inserting ``shall require that''.
    (u) Subsection (b) of section 6072 is amended by striking 
``6011(e)(2)'' and inserting ``6011(c)(2)''.
    (v) Subsection (d) of section 6104 is amended by redesignating the 
second paragraph (6) (relating to disclosure of reports by the Internal 
Revenue Service) and third paragraph (6) (relating to application to 
nonexempt charitable trusts and nonexempt private foundations) as 
paragraphs (7) and (8), respectively.
    (w) Subsection (c) of section 6662A is amended by striking 
``section 6664(d)(2)(A)'' and inserting ``section 6664(d)(3)(A)''.
    (x) Subparagraph (FF) of section 6724(d)(2) is amended by striking 
``section 6050W(c)'' and inserting ``section 6050W(f)''.
    (y) Section 7122 is amended by redesignating the second subsection 
(f) (relating to frivolous submissions, etc.) as subsection (g).
    (z) Subsection (a) of section 9035 is amended by striking ``section 
320(b)(1)(A)'' and inserting ``section 315(b)(1)(A)''.
    (aa) Section 9802 is amended by redesignating the second subsection 
(f) (relating to genetic information of a fetus or embryo) as 
subsection (g).
    (bb) Paragraph (3) of section 13(e) of the Worker, Homeownership, 
and Business Assistance Act of 2009 is amended by striking ``subsection 
(d)'' and inserting ``subsection (c)''.

SEC. 221. DEADWOOD PROVISIONS.

    (a) In General.--
            (1) Adjustments in tax tables so that inflation will not 
        result in tax increases.--Paragraph (7) of section 1(f) is 
        amended to read as follows:
            ``(7) Special rule for certain brackets.--In prescribing 
        tables under paragraph (1) which apply to taxable years 
        beginning in a calendar year after 1994, the cost-of-living 
        adjustment used in making adjustments to the dollar amounts at 
        which the 36 percent rate bracket begins or at which the 39.6 
        percent rate bracket begins shall be determined under paragraph 
        (3) by substituting `1993' for `1992'.''.
            (2) Certain plug-in electric vehicles.--
                    (A) Subpart B of part IV of subchapter A of chapter 
                1 is amended by striking section 30 (and by striking 
                the item relating to such section in the table of 
                sections for such subpart).
                    (B) Subsection (b) of section 38, as amended by 
                section 209(f)(1) of this Act, is amended by inserting 
                ``plus'' at the end of paragraph (35), by striking 
                paragraph (36), and by redesignating paragraph (37) as 
                paragraph (36).
                    (C) Subclause (VI) of section 48C(c)(1)(A)(i) is 
                amended by striking ``, qualified plug-in electric 
                vehicles (as defined by section 30(d)),''.
                    (D) Section 1016(a) is amended by striking 
                paragraph (25).
                    (E) Section 6501(m) is amended by striking 
                ``section 30(e)(6),''.
            (3) Earned income credit.--
                    (A) Paragraph (1) of section 32(b) is amended--
                            (i) by striking subparagraphs (B) and (C), 
                        and
                            (ii) by striking ``(A) In General.--In the 
                        case of taxable years beginning after 1995:'' 
                        in subparagraph (A) and moving the table 2 ems 
                        to the left.
                    (B) Subparagraph (B) of section 32(b)(2) is amended 
                by striking ``increased by'' and all that follows and 
                inserting ``increased by $3,000.''.
            (4) First-time homebuyer credit.--Section 6213(g)(2), as 
        amended by section 214(a)(2) of this Act, is amended by 
        striking subparagraph (P).
            (5) Making work pay credit.--
                    (A) Subpart C of part IV of subchapter A of chapter 
                1 is amended by striking section 36A (and by striking 
                the item relating to such section in the table of 
                sections for such subpart).
                    (B) Subparagraph (A) of section 6211(b)(4) is 
                amended by striking ``, 36A''.
                    (C) Section 6213(g)(2) is amended by striking 
                subparagraph (N).
            (6) General business credits.--Subsection (d) of section 38 
        is amended by striking paragraph (3).
            (7) Low-income housing credit.--Subclause (I) of section 
        42(h)(3)(C)(ii) is amended by striking ``($1.50 for 2001)''.
            (8) Minimum tax credit.--
                    (A)(i) Section 53 is amended by striking 
                subsections (e) and (f).
                    (ii) The amendment made by clause (i) striking 
                subsection (f) of section 53 of the Internal Revenue 
                Code of 1986 shall not be construed to allow any tax 
                abated by reason of section 53(f)(1) of such Code (as 
                in effect before such amendment) to be included in the 
                amount determined under section 53(b)(1) of such Code.
                    (B) Paragraph (4) of section 6211(b)(4) is amended 
                by striking ``, 53(e)''.
            (9) Adjustments based on adjusted current earnings.--Clause 
        (ii) of section 56(g)(4)(F) is amended by striking ``In the 
        case of any taxable year beginning after December 31, 1992, 
        clause'' and inserting ``Clause''.
            (10) Items of tax preference; depletion.--Paragraph (1) of 
        section 57(a) is amended by striking ``Effective with respect 
        to taxable years beginning after December 31, 1992, this'' and 
        inserting ``This''.
            (11) Intangible drilling costs.--
                    (A) Clause (i) of section 57(a)(2)(E) is amended by 
                striking ``In the case of any taxable year beginning 
                after December 31, 1992, this'' and inserting ``This''.
                    (B) Clause (ii) of section 57(a)(2)(E) is amended 
                by striking ``(30 percent in case of taxable years 
                beginning in 1993)''.
            (12) Environmental tax.--
                    (A) Subchapter A of chapter 1 is amended by 
                striking part VII (and by striking the item relating to 
                such part in the table of parts for such subchapter).
                    (B) Paragraph (2) of section 26(b) is amended by 
                striking subparagraph (B).
                    (C) Section 30A(c) is amended by striking paragraph 
                (1) and by redesignating paragraphs (2), (3), and (4) 
                as paragraphs (1), (2), and (3), respectively.
                    (D) Subsection (a) of section 164 is amended by 
                striking paragraph (5).
                    (E) Section 275(a) is amended by striking the last 
                sentence.
                    (F) Section 882(a)(1) is amended by striking ``, 
                59A''.
                    (G) Section 936(a)(3) is amended by striking 
                subparagraph (A) and by redesignating subparagraphs 
                (B), (C), and (D) as subparagraphs (A), (B), and (C), 
                respectively.
                    (H) Section 1561(a) is amended--
                            (i) by inserting ``and'' at the end of 
                        paragraph (2), by striking ``, and'' at the end 
                        of paragraph (3) and inserting a period, and by 
                        striking paragraph (4), and
                            (ii) by striking ``, the amount specified 
                        in paragraph (3), and the amount specified in 
                        paragraph (4)'' and inserting ``and the amount 
                        specified in paragraph (3)''.
                    (I) Section 4611(e) is amended--
                            (i) by striking ``section 59A, this 
                        section,'' in paragraph (2)(B) and inserting 
                        ``this section'', and
                            (ii) in paragraph (3)(A)--
                                    (I) by striking ``section 59A,'', 
                                and
                                    (II) by striking the comma after 
                                ``rate)''.
                    (J) Section 6425(c)(1)(A) is amended by inserting 
                ``plus'' at end of clause (i), by striking ``plus'' and 
                inserting ``over'' at the end of clause (ii), and by 
                striking clause (iii).
                    (K) Section 6655 is amended--
                            (i) in subsections (e)(2)(A)(i) and 
                        (e)(2)(B)(i), by striking ``taxable income, 
                        alternative minimum taxable income, and 
                        modified alternative minimum taxable income'' 
                        and inserting ``taxable income and alternative 
                        minimum taxable income'',
                            (ii) in subsection (e)(2)(B), by striking 
                        clause (iii), and
                            (iii) in subsection (g)(1)(A), by inserting 
                        ``plus'' at the end of clause (ii), by striking 
                        clause (iii), and by redesignating clause (iv) 
                        as clause (iii).
                    (L) Section 9507(b)(1) is amended by striking 
                ``59A,''.
            (13) Standard deduction.--
                    (A) So much of paragraph (1) of section 63(c) as 
                follows ``the sum of--'' is amended to read as follows:
                    ``(A) the basic standard deduction, and
                    ``(B) the additional standard deduction.''.
                    (B) Subsection (c) of section 63 is amended by 
                striking paragraphs (7), (8), and (9).
            (14) Annuities; certain proceeds of endowment and life 
        insurance contracts.--Section 72 is amended--
                    (A) in subsection (c)(4), by striking ``; except 
                that if such date was before January 1, 1954, then the 
                annuity starting date is January 1, 1954'', and
                    (B) in subsection (g)(3), by striking ``January 1, 
                1954, or'' and ``, whichever is later''.
            (15) Unemployment compensation.--Section 85 is amended by 
        striking subsection (c).
            (16) Accident and health plans.--Section 105(f) is amended 
        by striking ``or (d)''.
            (17) Flexible spending arrangements.--Section 106(c)(1) is 
        amended by striking ``Effective on and after January 1, 1997, 
        gross'' and inserting ``Gross''.
            (18) Certain combat zone compensation of members of the 
        armed forces.--Subsection (c) of section 112 is amended--
                    (A) by striking ``(after June 24, 1950)'' in 
                paragraph (2), and
                    (B) by striking ``such zone;'' and all that follows 
                in paragraph (3) and inserting ``such zone.''.
            (19) Legal service plans.--
                    (A) Part III of subchapter B of chapter 1 is 
                amended by striking section 120 (and by striking the 
                item relating to such section in the table of sections 
                for such subpart).
                    (B)(i) Section 414(n)(3)(C) is amended by striking 
                ``120,''.
                    (ii) Section 414(t)(2) is amended by striking 
                ``120,''.
                    (iii) Section 501(c) is amended by striking 
                paragraph (20).
                    (iv) Section 3121(a) is amended by striking 
                paragraph (17).
                    (v) Section 3231(e) is amended by striking 
                paragraph (7).
                    (vi) Section 3306(b) is amended by striking 
                paragraph (12).
                    (vii) Section 6039D(d)(1) is amended by striking 
                ``120,''.
                    (viii) Section 209(a)(14) of the Social Security 
                Act is amended--
                            (I) by striking subparagraph (B), and
                            (II) by striking ``(14)(A)'' and inserting 
                        ``(14)''.
            (20) Principal residence.--Section 121(b)(3) is amended--
                    (A) by striking subparagraph (B), and
                    (B) in subparagraph (A), by striking ``(A) In 
                general.--'' and moving the text 2 ems to the left.
            (21) Certain reduced uniformed services retirement pay.--
        Section 122(b)(1) is amended by striking ``after December 31, 
        1965,''.
            (22) Great plains conservation program.--Section 126(a) is 
        amended by striking paragraph (6) and by redesignating 
        paragraphs (7), (8), (9), and (10) as paragraphs (6), (7), (8), 
        and (9), respectively.
            (23) Treble damage payments under the antitrust law.--
        Section 162(g) is amended by striking the last sentence.
            (24) State legislators' travel expenses away from home.--
        Paragraph (4) of section 162(h) is amended by striking ``For 
        taxable years beginning after December 31, 1980, this'' and 
        inserting ``This''.
            (25) Interest.--
                    (A) Section 163 is amended--
                            (i) by striking paragraph (6) of subsection 
                        (d), and
                            (ii) by striking paragraph (5) of 
                        subsection (h).
                    (B) Section 56(b)(1)(C) is amended by striking 
                clause (ii) and by redesignating clauses (iii), (iv), 
                and (v) as clauses (ii), (iii), and (iv), respectively.
            (26) Qualified motor vehicle taxes.--Section 164, as 
        amended by section 209(c) of this Act, is amended by striking 
        subsections (a)(6) and (b)(6).
            (27) Disaster losses.--
                    (A) Subsection (h) of section 165 is amended by 
                striking paragraph (3) and by redesignating paragraphs 
                (4) and (5) as paragraphs (3) and (4), respectively.
                    (B) Paragraph (3) of section 165(h), as so 
                redesignated, is amended by striking ``paragraphs (2) 
                and (3)'' and inserting ``paragraph (2)''.
                    (C) Subsection (i) of section 165 is amended--
                            (i) in paragraph (1)--
                                    (I) by striking ``(as defined by 
                                clause (ii) of subsection (h)(3)(C))'', 
                                and
                                    (II) by striking ``(as defined by 
                                clause (i) of such subsection)'',
                            (ii) by striking ``(as defined by 
                        subsection (h)(3)(C)(i)'' in paragraph (4), and
                            (iii) by adding at the end the following 
                        new paragraph:
            ``(5) Federally declared disasters.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `Federally declared 
                disaster' means any disaster subsequently determined by 
                the President of the United States to warrant 
                assistance by the Federal Government under the Robert 
                T. Stafford Disaster Relief and Emergency Assistance 
                Act.
                    ``(B) Disaster area.--The term `disaster area' 
                means the area so determined to warrant such 
                assistance.''.
                    (D) Section 1033(h)(3) is amended by striking 
                ``section 165(h)(3)(C)'' and inserting ``section 
                165(i)(5)''.
            (28) Charitable, etc., contributions and gifts.--Section 
        170 is amended--
                    (A) by striking paragraph (3) of subsection (b),
                    (B) by striking paragraph (6) of subsection (e), 
                and
                    (C) by striking subsection (k).
            (29) Amortizable bond premium.--
                    (A) Subparagraph (B) of section 171(b)(1) is 
                amended to read as follows:
                    ``(B)(i) with reference to the amount payable on 
                maturity (or if it results in a smaller amortizable 
                bond premium attributable to the period before the call 
                date, with reference to the amount payable on the 
                earlier call date), in the case of a bond described in 
                subsection (a)(1), and
                    ``(ii) with reference to the amount payable on 
                maturity or on an earlier call date, in the case of a 
                bond described in subsection (a)(2).''.
                    (B) Paragraphs (2) and (3)(B) of section 171(b) are 
                each amended by striking ``paragraph (1)(B)(ii)'' and 
                inserting ``paragraph (1)(B)(i)''.
            (30) Net operating loss carrybacks, carryovers, and 
        carryforwards.--
                    (A) Section 172, as amended by section 211(c)(1)(B) 
                of this Act, is amended--
                            (i) by striking subparagraphs (D), (H), 
                        (I), and (J) of subsection (b)(1) and by 
                        redesignating subparagraphs (E), (F), and (G) 
                        as subparagraphs (D), (E), and (F), 
                        respectively, and
                            (ii) by striking subsections (g) and (j) 
                        and by redesignating subsections (h), (i), and 
                        (k) as subsections (g), (h), and (i), 
                        respectively.
                    (B) Each of the following provisions of section 172 
                (as amended by section 211(c)(1)(B) of this Act and as 
                redesignated by subparagraph (A)) are amended as 
                follows:
                            (i) By striking ``ending after August 2, 
                        1989'' in subsection (b)(1)(D)(i)(II).
                            (ii) By striking ``subsection (h)'' in 
                        subsection (b)(1)(D)(ii) and inserting 
                        ``subsection (g)''.
                            (iii) By striking ``section 
                        165(h)(3)(C)(i)'' in subsection 
                        (b)(1)(E)(ii)(II) and inserting ``section 
                        165(i)(5)''.
                            (iv) By striking ``subsection (i)'' and all 
                        that follows in the last sentence of subsection 
                        (b)(1)(E)(ii) and inserting ``subsection 
                        (h)).''.
                            (v) By striking ``subsection (i)'' in 
                        subsection (b)(1)(F) and inserting ``subsection 
                        (h)''.
                            (vi) By striking subparagraph (F) of 
                        paragraph (2) of subsection (g).
                            (vii) By striking ``subsection (b)(1)(E)'' 
                        each place it appears in subsection (g)(4) and 
                        inserting ``subsection (b)(1)(D)''.
                            (viii) By striking the last sentence of 
                        subsection (h)(1).
                            (ix) By striking ``subsection (b)(1)(G)'' 
                        each place it appears in subsection (h)(3) and 
                        inserting ``subsection (b)(1)(F)''.
                    (C) Subsection (d) of section 56 is amended by 
                striking paragraph (3).
                    (D) Paragraph (5) of section 382(l) is amended by 
                striking subparagraph (F) and by redesignating 
                subparagraphs (G) and (H) as subparagraphs (F) and (G), 
                respectively.
            (31) Research and experimental expenditures.--Subparagraph 
        (A) of section 174(a)(2) is amended to read as follows:
                    ``(A) Without consent.--A taxpayer may, without the 
                consent of the Secretary, adopt the method provided in 
                this subsection for his first taxable year for which 
                expenditures described in paragraph (1) are paid or 
                incurred.''.
            (32) Amortization of certain research and experimental 
        expenditures.--Paragraph (2) of section 174(b) is amended by 
        striking ``beginning after December 31, 1953''.
            (33) Soil and water conservation expenditures.--Paragraph 
        (1) of section 175(d) is amended to read as follows:
            ``(1) Without consent.--A taxpayer may, without the consent 
        of the Secretary, adopt the method provided in this section for 
        the taxpayer's first taxable year for which expenditures 
        described in subsection (a) are paid or incurred.''.
            (34) Clean-fuel vehicles.--
                    (A) Part VI of subchapter A of chapter 1 is amended 
                by striking section 179A (and by striking the item 
                relating to such section in the table of sections for 
                such part).
                    (B) Section 30C(e) is amended by adding at the end 
                the following:
            ``(7) Reference.--For purposes of this section, any 
        reference to section 179A shall be treated as a reference to 
        such section as in effect immediately before its repeal.''.
                    (C) Section 62(a) is amended by striking paragraph 
                (14).
                    (D) Section 263(a)(1) is amended by striking 
                subparagraph (H).
                    (E) Section 280F(a)(1) is amended by striking 
                subparagraph (C).
                    (F) Section 312(k)(3) is amended by striking 
                ``179A,'' each place it appears.
                    (G) Section 1016(a) is amended by striking 
                paragraph (24).
                    (H) Section 1245(a) is amended by striking 
                ``179A,'' each place it appears in paragraphs (2)(C) 
                and (3)(C).
            (35) Qualified disaster expenses.--Part VI of subchapter A 
        of chapter 1 is amended by striking section 198A (and by 
        striking the item relating to such section in the table of 
        sections for such part).
            (36) Activities not engaged in for profit.--Section 
        183(e)(1) is amended by striking the last sentence.
            (37) Domestic production activities.--
                    (A) Subsection (a) of section 199 is amended--
                            (i) by striking paragraph (2),
                            (ii) by redesignating subparagraphs (A) and 
                        (B) of paragraph (1) as paragraphs (1) and (2), 
                        respectively, and by moving paragraphs (1) and 
                        (2) (as so redesignated) 2 ems to the left, and
                            (iii) by striking ``Allowance of 
                        Deduction.--'' and all that follows through 
                        ``There shall be allowed'' and inserting the 
                        following:
    ``(a) Allowance of Deduction.--There shall be allowed''.
                    (B) Paragraphs (2) and (6)(B) of section 199(d) are 
                each amended by striking ``(a)(1)(B)'' and inserting 
                ``(a)(2)''.
            (38) Retirement savings.--
                    (A) Subparagraph (A) of section 219(b)(5) is 
                amended to read as follows:
                    ``(A) In general.--The deductible amount is 
                $5,000.''.
                    (B) Clause (ii) of section 219(b)(5)(B) is amended 
                to read as follows:
                            ``(ii) Applicable amount.--For purposes of 
                        clause (i), the applicable amount is $1,000.''.
                    (C) Paragraph (5) of section 219(b) is amended by 
                striking subparagraph (C) and by redesignating 
                subparagraph (D) as subparagraph (C).
                    (D) Clause (ii) of section 219(g)(2)(A) is amended 
                by striking ``for a taxable year beginning after 
                December 31, 2006''.
                    (E) Section 219(g)(3)(B) is amended by striking 
                clauses (i) and (ii) and inserting the following:
                            ``(i) In the case of a taxpayer filing a 
                        joint return, $80,000.
                            ``(ii) In the case of any other taxpayer 
                        (other than a married individual filing a 
                        separate return), $50,000.''.
                    (F) Paragraph (8) of section 219(g) is amended by 
                striking ``the dollar amount in the last row of the 
                table contained in paragraph (3)(B)(i), the dollar 
                amount in the last row of the table contained in 
                paragraph (3)(B)(ii), and the dollar amount contained 
                in paragraph (7)(A),'' and inserting ``each of the 
                dollar amounts in paragraphs (3)(B)(i), (3)(B)(ii), and 
                (7)(A)''.
            (39) Reports regarding qualified voluntary retirement 
        contributions.--
                    (A) Section 219 is amended by striking paragraph 
                (4) of subsection (f) and subsection (h).
                    (B) Section 6652 is amended by striking subsection 
                (g).
            (40) Interest on education loans.--Paragraph (1) of section 
        221(b) is amended by striking ``shall not exceed'' and all that 
        follows and inserting ``shall not exceed $2,500.''.
            (41) Dividends received on certain preferred stock; and 
        dividends paid on certain preferred stock of public 
        utilities.--
                    (A) Sections 244 and 247 are hereby repealed, and 
                the table of sections for part VIII of subchapter B of 
                chapter 1 is amended by striking the items relating to 
                sections 244 and 247.
                    (B) Paragraph (5) of section 172(d) is amended to 
                read as follows:
            ``(5) Computation of deduction for dividends received.--The 
        deductions allowed by section 243 (relating to dividends 
        received by corporations) and 245 (relating to dividends 
        received from certain foreign corporations) shall be computed 
        without regard to section 246(b) (relating to limitation on 
        aggregate amount of deductions).''.
                    (C) Paragraph (1) of section 243(c) is amended to 
                read as follows:
            ``(1) In general.--In the case of any dividend received 
        from a 20-percent owned corporation, subsection (a)(1) shall be 
        applied by substituting `80 percent' for `70 percent'.''.
                    (D) Section 243(d) is amended by striking paragraph 
                (4).
                    (E) Section 246 is amended--
                            (i) by striking ``, 244,'' in subsection 
                        (a)(1),
                            (ii) in subsection (b)(1)--
                                    (I) by striking ``sections 
                                243(a)(1), 244(a),'' and inserting 
                                ``section 243(a)(1)'',
                                    (II) by striking ``244(a),'' the 
                                second place it appears, and
                                    (III) by striking ``subsection (a) 
                                or (b) of section 245, and 247,'' and 
                                inserting ``and subsection (a) or (b) 
                                of section 245,'', and
                            (iii) by striking ``, 244,'' in subsection 
                        (c)(1).
                    (F) Section 246A is amended by striking ``, 244,'' 
                both places it appears in subsections (a) and (e).
                    (G) Sections 263(g)(2)(B)(iii), 277(a), 301(e)(2), 
                469(e)(4), 512(a)(3)(A), subparagraphs (A), (C), and 
                (D) of section 805(a)(4), 805(b)(5), 812(e)(2)(A), 
                815(c)(2)(A)(iii), 832(b)(5), 833(b)(3)(E), and 
                1059(b)(2)(B) are each amended by striking ``, 244,'' 
                each place it appears.
                    (H) Section 1244(c)(2)(C) is amended by striking 
                ``244,''.
                    (I) Section 805(a)(4)(B) is amended by striking ``, 
                244(a),'' each place it appears.
                    (J) Section 810(c)(2)(B) is amended by striking 
                ``244 (relating to dividends on certain preferred stock 
                of public utilities),''.
                    (K) The amendments made by this paragraph shall not 
                apply to preferred stock issued before October 1, 1942 
                (determined in the same manner as under section 247 of 
                the Internal Revenue Code of 1986 as in effect before 
                its repeal by such amendments).
            (42) Organization expenses.--Section 248(c) is amended by 
        striking ``beginning after December 31, 1953,'' and by striking 
        the last sentence.
            (43) Bond repurchase premium.--Section 249(b)(1) is amended 
        by striking ``, in the case of bonds or other evidences of 
        indebtedness issued after February 28, 1913,''.
            (44) Amount of gain where loss previously disallowed.--
        Section 267(d) is amended by striking ``(or by reason of 
        section 24(b) of the Internal Revenue Code of 1939)'' in 
        paragraph (1), by striking ``after December 31, 1953,'' in 
        paragraph (2), by striking the second sentence, and by striking 
        ``or by reason of section 118 of the Internal Revenue Code of 
        1939'' in the last sentence.
            (45) Acquisitions made to evade or avoid income tax.--
        Paragraphs (1) and (2) of section 269(a) are each amended by 
        striking ``or acquired on or after October 8, 1940,''.
            (46) Meals and entertainment.--Paragraph (3) of section 
        274(n) is amended--
                    (A) by striking ``(A) In general.--'',
                    (B) by striking ``substituting `the applicable 
                percentage' for'' and inserting ``substituting `80 
                percent' for'', and
                    (C) by striking subparagraph (B).
            (47) Interest on indebtedness incurred by corporations to 
        acquire stock or assets of another corporation.--
                    (A) Section 279 is amended--
                            (i) by striking ``after December 31, 
                        1967,'' in subsection (a)(2),
                            (ii) by striking ``after October 9, 1969,'' 
                        in subsection (b),
                            (iii) by striking ``after October 9, 1969, 
                        and'' in subsection (d)(5), and
                            (iv) by striking subsection (i) and 
                        redesignating subsection (j) as subsection (i).
                    (B) The amendments made by this paragraph shall 
                not--
                            (i) apply to obligations issued on or 
                        before October 9, 1969 (determined in the same 
                        manner as under section 279 of the Internal 
                        Revenue Code of 1986 as in effect before such 
                        amendments), and
                            (ii) be construed to require interest on 
                        obligations issued on or before December 31, 
                        1967, to be taken into account under section 
                        279(a)(2) of such Code (as in effect after such 
                        amendments).
            (48) Bank holding companies.--
                    (A) Clause (iii) of section 304(b)(3)(D) is 
                repealed.
                    (B) The heading of subparagraph (D) of section 
                304(b)(3) is amended by striking ``and special rule''.
            (49) Effect on earnings and profits.--Subsection (d) of 
        section 312 is amended by striking paragraph (2) and 
        redesignating paragraph (3) as paragraph (2).
            (50) Disqualified stock.--Paragraph (3) of section 355(d) 
        is amended by striking ``after October 9, 1990, and'' each 
        place it appears.
            (51) Basis to corporations.--Section 362 is amended by 
        striking ``on or after June 22, 1954'' in subsection (a) and by 
        striking ``, on or after June 22, 1954,'' each place it appears 
        in subsection (c).
            (52) Temporary waiver of minimum required distribution.--
        Section 401(a)(9) is amended by striking subparagraph (H).
            (53) Individual retirement accounts.--Clause (i) of section 
        408(p)(2)(E) is amended to read as follows:
                            ``(i) In general.--For purposes of 
                        subparagraph (A)(ii), the applicable amount is 
                        $10,000.''.
            (54) Tax credit employee stock ownership plans.--Section 
        409 is amended by striking subsection (q).
            (55) Catch-up contributions.--Clauses (i) and (ii) of 
        section 414(v)(2)(B) are amended to read as follows:
                            ``(i) In the case of an applicable employer 
                        plan other than a plan described in section 
                        401(k)(11) or 408(p), the applicable dollar 
                        amount is $5,000.
                            ``(ii) In the case of an applicable 
                        employer plan described in section 401(k)(11) 
                        or 408(p), the applicable dollar amount is 
                        $2,500.''.
            (56) Employee stock purchase plans.--Section 423(a) is 
        amended by striking ``after December 31, 1963,''.
            (57) Pension related transition rules.--
                    (A) Section 402(g)(1)(B) is amended by striking 
                ``shall be'' and all that follows and inserting ``is 
                $15,000.''.
                    (B)(i) Subparagraph (D) of section 417(e)(3) is 
                amended--
                            (I) by striking clauses (ii) and (iii),
                            (II) by striking ``if--'' and all that 
                        follows through ``section 430(h)(2)(D)'' and 
                        inserting ``if section 430(h)(2)(D)'', and
                            (III) by striking ``described in such 
                        section,'' and inserting ``described in such 
                        section.''.
                    (ii) Clause (iii) of section 205(g)(3)(B) of the 
                Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1055(g)(3)(B)) is amended--
                            (I) by striking subclauses (II) and (III),
                            (II) by striking ``if--'' and all that 
                        follows through ``section 303(h)(2)(D)'' and 
                        inserting ``if section 303(h)(2)(D)'', and
                            (III) by striking ``described in such 
                        section,'' and inserting ``described in such 
                        section.''.
                    (C)(i) Paragraph (5) of section 430(c) is amended 
                by striking subparagraph (B) and by striking ``(A) In 
                general.--''.
                    (ii) Paragraph (5) of section 303(c) of the 
                Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1083(c)) is amended by striking subparagraph (B) 
                and by striking ``(A) In general.--''.
                    (D)(i) Paragraph (2) of section 430(h) is amended 
                by striking subparagraph (G).
                    (ii) Paragraph (2) of section 303(h) of the 
                Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1083(h)) is amended by striking subparagraph 
                (G).
                    (E)(i) Paragraph (3) of section 436(j), as added by 
                section 113(a)(1)(B) of the Pension Protection Act of 
                2006, is amended by striking subparagraphs (B) and (C) 
                and by striking ``(A) In general.--''.
                    (ii) Subparagraph (C) of section 206(g)(9) of the 
                Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1056(g)(9)) is amended by striking clauses (ii) 
                and (iii) and by striking ``(i) In general.--''.
                    (F)(i) Section 436(j) is amended by striking the 
                paragraph (3) added by section 203(a)(2) of the 
                Preservation of Access to Care for Medicare 
                Beneficiaries and Pension Relief Act of 2010.
                    (ii) Section 206(g)(9) of the Employee Retirement 
                Income Security Act of 1974 (29 U.S.C. 1056(g)(9)) is 
                amended by striking subparagraph (D).
                    (G)(i) Section 436 is amended by striking 
                subsection (m).
                    (ii) Section 206(g) of the Employee Retirement 
                Income Security Act of 1974 (29 U.S.C. 1056(g)) is 
                amended by striking paragraph (11).
                    (H) Section 457(e)(15)(A) is amended by striking 
                ``shall be'' and all that follows and inserting ``is 
                $15,000.''.
            (58) Limitation on deductions for certain farming.--
                    (A) Section 464 is amended by striking ``any 
                farming syndicate (as defined in subsection (c))'' both 
                places it appears in subsections (a) and (b) and 
                inserting ``any taxpayer to whom subsection (d) 
                applies''.
                    (B)(i) Subsection (c) of section 464 is hereby 
                moved to the end of section 461 and redesignated as 
                subsection (j).
                    (ii) Such subsection (j) is amended--
                            (I) by striking ``For purposes of this 
                        section'' in paragraph (1) and inserting ``For 
                        purposes of subsection (i)(4)'', and
                            (II) by adding at the end the following new 
                        paragraphs:
            ``(3) Farming.--For purposes of this subsection, the term 
        `farming' has the meaning given to such term by section 464(e).
            ``(4) Limited entrepreneur.--For purposes of this 
        subsection, the term `limited entrepreneur' means a person 
        who--
                    ``(A) has an interest in an enterprise other than 
                as a limited partner, and
                    ``(B) does not actively participate in the 
                management of such enterprise.''.
                            (iii) Paragraph (4) of section 461(i) is 
                        amended by striking ``section 464(c)'' and 
                        inserting ``subsection (j)''.
                    (C) Section 464 is amended--
                            (i) by striking subsections (e) and (g) and 
                        redesignating subsections (d) and (f) as 
                        subsections (c) and (d), respectively, and
                            (ii) by adding at the end the following new 
                        subsection:
    ``(e) Farming.--For purposes of this section, the term `farming' 
means the cultivation of land or the raising or harvesting of any 
agricultural or horticultural commodity including the raising, 
shearing, feeding, caring for, training, and management of animals. For 
purposes of the preceding sentence, trees (other than trees bearing 
fruit or nuts) shall not be treated as an agricultural or horticultural 
commodity.''.
                    (D) Subsection (d) of section 464 of such Code (as 
                redesignated by subparagraph (C)) is amended--
                            (i) by striking paragraph (1) and 
                        redesignating paragraphs (2), (3), and (4) as 
                        paragraphs (1), (2), and (3), respectively, and
                            (ii) by striking ``Subsections (a) and (b) 
                        to Apply to'' in the heading.
                    (E) Subparagraph (A) of section 58(a)(2) is amended 
                by striking ``section 464(c)'' and inserting ``section 
                461(j)''.
            (59) Deductions limited to amount at risk.--Subparagraph 
        (A) of section 465(c)(3) is amended by striking ``In the case 
        of taxable years beginning after December 31, 1978, this'' and 
        inserting ``This''.
            (60) Passive activity losses and credits limited.--
                    (A) Section 469 is amended by striking subsection 
                (m).
                    (B) Subsection (b) of section 58 is amended by 
                adding ``and'' at the end of paragraph (1), by striking 
                paragraph (2), and by redesignating paragraph (3) as 
                paragraph (2).
            (61) Adjustments required by changes in method of 
        accounting.--Section 481(b)(3) is amended by striking 
        subparagraph (C).
            (62) Exemption from tax on corporations, certain trusts, 
        etc.--Section 501 is amended by striking subsection (s).
            (63) Requirements for exemption.--
                    (A) Section 503(a)(1) is amended to read as 
                follows:
            ``(1) General rule.--An organization described in paragraph 
        (17) or (18) of section 501(c), or described in section 401(a) 
        and referred to in section 4975(g) (2) or (3), shall not be 
        exempt from taxation under section 501(a) if it has engaged in 
        a prohibited transaction.''.
                    (B) Paragraph (2) of section 503(a) is amended by 
                striking ``described in section 501(c)(17) or (18) or 
                paragraph (a)(1)(B)'' and inserting ``described in 
                paragraph (1)''.
                    (C) Subsection (c) of section 503 is amended by 
                striking ``described in section 501(c)(17) or (18) or 
                subsection (a)(1)(B)'' and inserting ``described in 
                subsection (a)(1)''.
            (64) Accumulated taxable income.--Paragraph (1) of section 
        535(b) and paragraph (1) of section 545(b) are each amended by 
        striking ``section 531'' and all that follows and inserting 
        ``section 531 or the personal holding company tax imposed by 
        section 541.''.
            (65) Definition of property.--Subsection (b) of section 614 
        is amended--
                    (A) by striking paragraphs (3)(C) and (5), and
                    (B) in paragraph (4), by striking ``whichever of 
                the following years is later: The first taxable year 
                beginning after December 31, 1963, or''.
            (66) Amounts received by surviving annuitant under joint 
        and survivor annuity contract.--Subparagraph (A) of section 
        691(d)(1) is amended by striking ``after December 31, 1953, 
        and''.
            (67) Income taxes of members of armed forces on death.--
        Section 692(a)(1) is amended by striking ``after June 24, 
        1950''.
            (68) Special rules for computing reserves.--Paragraph (7) 
        of section 807(e) is amended by striking subparagraph (B) and 
        redesignating subparagraph (C) as subparagraph (B).
            (69) Insurance company taxable income.--
                    (A) Section 832(e) is amended by striking ``of 
                taxable years beginning after December 31, 1966,''.
                    (B) Section 832(e)(6) is amended by striking ``In 
                the case of any taxable year beginning after December 
                31, 1970, the'' and inserting ``The''.
            (70) Capitalization of certain policy acquisition 
        expenses.--Section 848 is amended by striking subsection (j).
            (71) Tax on nonresident alien individuals.--Subparagraph 
        (B) of section 871(a)(1) is amended to read as follows:
                    ``(B) gains described in subsection (b) or (c) of 
                section 631,''.
            (72) Limitation on credit.--Paragraph (2) of section 904(d) 
        is amended by striking subparagraph (J).
            (73) Foreign earned income.--Clause (i) of section 
        911(b)(2)(D) is amended to read as follows:
                            ``(i) In general.--The exclusion amount for 
                        any calendar year is $80,000.''.
            (74) Basis of property acquired from decedent.--
                    (A) Section 1014(a)(2) is amended to read as 
                follows:
            ``(2) in the case of an election under section 2032, its 
        value at the applicable valuation date prescribed by such 
        section,''.
                    (B) Section 1014(b) is amended by striking 
                paragraphs (7) and (8).
            (75) Adjusted basis.--Section 1016(a) is amended by 
        striking paragraph (12).
            (76) Property on which lessee has made improvements.--
        Section 1019 is amended by striking the last sentence.
            (77) Involuntary conversion.--Section 1033 is amended by 
        striking subsection (j) and by redesignating subsections (k) 
        and (l) as subsections (j) and (k), respectively.
            (78) Property acquired during affiliation.--Section 1051 is 
        hereby repealed, and the table of sections for part IV of 
        subchapter O of chapter 1 is amended by striking the item 
        relating to section 1051.
            (79) Capital gains and losses.--Section 1222 is amended by 
        striking the last sentence.
            (80) Holding period of property.--
                    (A) Paragraph (1) of section 1223 is amended by 
                striking ``after March 1, 1954,''.
                    (B) Paragraph (4) of section 1223 is amended by 
                striking ```(or under so much of section 1052(c) as 
                refers to section 113(a)(23) of the Internal Revenue 
                Code of 1939)'''.
                    (C) Paragraphs (6) and (8) of section 1223 are 
                repealed.
            (81) Property used in the trade or business and involuntary 
        conversions.--Subparagraph (A) of section 1231(c)(2) is amended 
        by striking ``beginning after December 31, 1981''.
            (82) Sale or exchange of patents.--Section 1235 is 
        amended--
                    (A) by striking subsection (c) and by redesignating 
                subsections (d) and (e) as subsections (c) and (d), 
                respectively, and
                    (B) by striking ``subsection (d)'' in subsection 
                (b)(2)(B) and inserting ``subsection (c)''.
            (83) Dealers in securities.--Subsection (b) of section 1236 
        is amended by striking ``after November 19, 1951,''.
            (84) Sale of patents.--Subsection (a) of section 1249 is 
        amended by striking ``after December 31, 1962,''.
            (85) Gain from disposition of farmland.--Paragraph (1) of 
        section 1252(a) is amended--
                    (A) by striking ``after December 31, 1969'' the 
                first place it appears, and
                    (B) by striking ``after December 31, 1969,'' in 
                subparagraph (A).
            (86) Treatment of amounts received on retirement or sale or 
        exchange of debt instruments.--Subsection (c) of section 1271 
        is amended to read as follows:
    ``(c) Special Rule for Certain Obligations With Respect to Which 
Original Issue Discount Not Currently Includible.--
            ``(1) In general.--On the sale or exchange of debt 
        instruments issued by a government or political subdivision 
        thereof after December 31, 1954, and before July 2, 1982, or by 
        a corporation after December 31, 1954, and on or before May 27, 
        1969, any gain realized which does not exceed--
                    ``(A) an amount equal to the original issue 
                discount, or
                    ``(B) if at the time of original issue there was no 
                intention to call the debt instrument before maturity, 
                an amount which bears the same ratio to the original 
                issue discount as the number of complete months that 
                the debt instrument was held by the taxpayer bears to 
                the number of complete months from the date of original 
                issue to the date of maturity, shall be considered as 
                ordinary income.
            ``(2) Subsection (a)(2)(A) not to apply.--Subsection 
        (a)(2)(A) shall not apply to any debt instrument referred to in 
        paragraph (1) of this subsection.
            ``(3) Cross reference.--For current inclusion of original 
        issue discount, see section 1272.''.
            (87) Amount and method of adjustment.--Section 1314 is 
        amended by striking subsection (d) and by redesignating 
        subsection (e) as subsection (d).
            (88) Election; revocation; termination.--Clause (iii) of 
        section 1362(d)(3)(A) is amended by striking ``unless'' and all 
        that follows and inserting ``unless the corporation was an S 
        corporation for such taxable year.''.
            (89) Old-age, survivors, and disability insurance.--
        Subsection (a) of section 1401 is amended by striking ``the 
        following percent'' and all that follows and inserting ``12.4 
        percent of the amount of the self-employment income for such 
        taxable year.''.
            (90) Hospital insurance.--Paragraph (1) of section 1401(b) 
        is amended by striking: ``the following percent'' and all that 
        follows and inserting ``2.9 percent of the amount of the self-
        employment income for such taxable year.''.
            (91) Ministers, members of religious orders, and christian 
        science practitioners.--Paragraph (3) of section 1402(e) is 
        amended--
                    (A) by striking ``whichever of the following dates 
                is later: (A)'', and
                    (B) by striking ``;or (B)''' and all that follows 
                and inserting a period.
            (92) Withholding of tax on nonresident aliens.--The first 
        sentence of subsection (b) of section 1441 and the first 
        sentence of paragraph (5) of section 1441(c) are each amended 
        by striking ``gains subject to tax'' and all that follows 
        through ``October 4, 1966'' and inserting ``and gains subject 
        to tax under section 871(a)(1)(D)''.
            (93) Affiliated group defined.--Subparagraph (A) of section 
        1504(a)(3) is amended by striking ``for a taxable year which 
        includes any period after December 31, 1984'' in clause (i) and 
        by striking ``in a taxable year beginning after December 31, 
        1984'' in clause (ii).
            (94) Disallowance of the benefits of the graduated 
        corporate rates and accumulated earnings credit.--
                    (A) Subsection (a) of section 1551 is amended--
                            (i) by striking paragraph (1) and by 
                        redesignating paragraphs (2) and (3) as 
                        paragraphs (1) and (2), respectively, and
                            (ii) by striking ``after June 12, 1963,'' 
                        each place it appears.
                    (B) Section 1551(b) is amended--
                            (i) by striking ``or (2)'' in paragraph 
                        (1), and
                            (ii) by striking ``(a)(3)'' in paragraph 
                        (2) and inserting ``(a)(2)''.
            (95) Credit for state death taxes.--
                    (A)(i) Part II of subchapter A of chapter 11 is 
                amended by striking section 2011 (and by striking the 
                item relating to such section in the table of sections 
                for such subpart).
                    (ii) Section 2106(a)(4) is amended by striking 
                ``section 2011(a)'' and inserting ``2058(a)''.
                    (B)(i) Subchapter A of chapter 13 is amended by 
                striking section 2604 (and by striking the item 
                relating to such section in the table of sections for 
                such subpart).
                    (ii) Clause (ii) of section 164(b)(4)(A) is amended 
                by inserting ``(as in effect before its repeal)'' after 
                ``section 2604''.
                    (iii) Section 2654(a)(1) is amended by striking 
                ``(computed without regard to section 2604)''.
            (96) Gross estate.--Subsection (c) of section 2031 is 
        amended by striking paragraph (3) and by amending paragraph 
        (1)(B) to read as follows:
                    ``(II) $500,000.''.
            (97)(A) Part IV of subchapter A of chapter 11 is amended by 
        striking section 2057 (and by striking the item relating to 
        such section in the table of sections for such subpart).
            (B) Paragraph (10) of section 2031(c) is amended by 
        inserting ``(as in effect before its repeal)'' immediately 
        before the period at the end thereof.
            (98) Property within the united states.--Subsection (c) of 
        section 2104 is amended by striking ``With respect to estates 
        of decedents dying after December 31, 1969, deposits'' and 
        inserting ``Deposits''.
            (99) FICA taxes.--
                    (A) Subsection (a) of section 3101 is amended by 
                striking ``the following percentages'' and all that 
                follows and inserting ``6.2 percent of the wages (as 
                defined in section 3121(a)) received by the individual 
                with respect to employment (as defined in section 
                3121(b))''.
                    (B)(i) Subsection (a) of section 3111 is amended by 
                striking ``the following percentages'' and all that 
                follows and inserting ``6.2 percent of the wages (as 
                defined in section 3121(a)) paid by the employer with 
                respect to employment (as defined in section 
                3121(b)).''.
                    (ii) Subsection (b) of section 3111 is amended by 
                striking ``the following percentages'' and all that 
                follows and inserting ``1.45 percent of the wages (as 
                defined in section 3121(a)) paid by the employer with 
                respect to employment (as defined in section 
                3121(b)).''.
                    (C)(i) Section 3121(b) is amended by striking 
                paragraph (17).
                    (ii) Section 210(a) of the Social Security Act is 
                amended by striking paragraph (17).
            (100) Railroad retirement.--
                    (A) Subsection (b) of section 3201 is amended to 
                read as follows:
    ``(b) Tier 2 Tax.--In addition to other taxes, there is hereby 
imposed on the income of each employee a tax equal to the percentage 
determined under section 3241 for any calendar year of the compensation 
received during such calendar year by such employee for services 
rendered by such employee.''.
                    (B) Subsection (b) of section 3211 is amended to 
                read as follows:
    ``(b) Tier 2 Tax.--In addition to other taxes, there is hereby 
imposed on the income of each employee representative a tax equal to 
the percentage determined under section 3241 for any calendar year of 
the compensation received during such calendar year by such employee 
representative for services rendered by such employee 
representative.''.
                    (C) Subsection (b) of section 3221 is amended to 
                read as follows:
    ``(b) Tier 2 Tax.--In addition to other taxes, there is hereby 
imposed on every employer an excise tax, with respect to having 
individuals in his employ, equal to the percentage determined under 
section 3241 for any calendar year of the compensation paid during such 
calendar year by such employer for services rendered to such 
employer.''.
                    (D) Subsection (b) of section 3231 is amended--
                            (i) by striking ``compensation; except'' 
                        and all that follows in the first sentence and 
                        inserting ``compensation.'', and
                            (ii) by striking the second sentence.
            (101) Credits against federal unemployment tax.--
                    (A) Paragraph (4) of section 3302(f) is amended--
                            (i) by striking ``subsection--'' and all 
                        that follows through ``(A) In general.--The'' 
                        and inserting ``subsection, the'',
                            (ii) by striking subparagraph (B),
                            (iii) by redesignating clauses (i) and (ii) 
                        as subparagraphs (A) and (B), respectively, and
                            (iv) by moving the text of such 
                        subparagraphs (as so redesignated) 2 ems to the 
                        left.
                    (B) Paragraph (5) of section 3302(f) is amended by 
                striking subparagraph (D) and by redesignating 
                subparagraph (E) as subparagraph (D).
            (102) Domestic service employment taxes.--Section 3510(b) 
        is amended by striking paragraph (4).
            (103) Luxury passenger automobiles.--
                    (A) Chapter 31 is amended by striking subchapter A 
                (and by striking the item relating to such subchapter 
                in the table of subchapters for such chapter).
                    (B)(i) Section 4221 is amended--
                            (I) in subsections (a) and (d)(1), by 
                        striking ``subchapter A or'' and inserting 
                        ``subchapter'',
                            (II) in subsection (a), by striking ``In 
                        the case of taxes imposed by subchapter A of 
                        chapter 31, paragraphs (1), (3), (4), and (5) 
                        shall not apply.'', and
                            (III) in subsection (c), by striking 
                        ``4001(c), 4001(d), or''.
                    (ii) Section 4222 is amended by striking ``4001(c), 
                4001(d),''.
                    (iii) Section 4293 is amended by striking 
                ``subchapter A of chapter 31,''.
            (104) Transportation by air.--Section 4261(e) is amended--
                    (A) in paragraph (1), by striking subparagraph (C), 
                and
                    (B) by striking paragraph (5).
            (105) Taxes on failure to distribute income.--
                    (A) Subsection (g) of section 4942 is amended by 
                striking ``For all taxable years beginning on or after 
                January 1, 1975, subject'' in paragraph (2)(A) and 
                inserting ``Subject''.
                    (B) Section 4942(i)(2) is amended by striking 
                ``beginning after December 31, 1969, and''.
            (106) Taxes on taxable expenditures.--Section 4945(f) is 
        amended by striking ``(excluding therefrom any preceding 
        taxable year which begins before January 1, 1970)''.
            (107) Definitions and special rules.--Section 4682(h) is 
        amended--
                    (A) by striking paragraph (1) and redesignating 
                paragraphs (2), (3), and (4) as paragraphs (1), (2), 
                and (3), respectively, and
                    (B) in paragraph (1) (as so redesignated)--
                            (i) by striking the heading and inserting 
                        ``In general'', and
                            (ii) by striking ``after 1991'' in 
                        subparagraph (C).
            (108) Returns.--Subsection (a) of section 6039D is amended 
        by striking ``beginning after December 31, 1984,''.
            (109) Information returns.--Subsection (c) of section 6060 
        is amended by striking ```year''' and all that follows and 
        inserting ``year.''.
            (110) Collection.--Section 6302 is amended--
                    (A) in subsection (e)(2), by striking ``imposed 
                by'' and all that follows through ``with respect to'' 
                and inserting ``imposed by sections 4251, 4261, or 4271 
                with respect to'',
                    (B) by striking the last sentence of subsection 
                (f)(1), and
                    (C) in subsection (h)--
                            (i) by striking paragraph (2) and 
                        redesignating paragraphs (3) and (4) as 
                        paragraphs (2) and (3), respectively, and
                            (ii) by amending paragraph (3) (as so 
                        redesignated) to read as follows:
            ``(3) Coordination with other electronic fund transfer 
        requirements.--Under regulations, any tax required to be paid 
        by electronic fund transfer under section 5061(e) or 5703(b) 
        shall be paid in such a manner as to ensure that the 
        requirements of the second sentence of paragraph (1)(A) of this 
        subsection are satisfied.''.
            (111) Abatements.--Section 6404(f) is amended by striking 
        paragraph (3).
            (112) 2008 recovery rebate for individuals.--
                    (A) Subchapter B of chapter 65 is amended by 
                striking section 6428 (and by striking the item 
                relating to such section in the table of sections for 
                such subchapter).
                    (B) Subparagraph (A) of section 6211(b)(4) is 
                amended by striking ``6428,''.
                    (C) Paragraph (2) of section 6213(g), as amended by 
                section 214(a)(2) of this Act and paragraphs (4) and 
                (5)(C) of this subsection, is amended by striking 
                subparagraph (Q), by redesignating subparagraph (O) as 
                subparagraph (N), by inserting ``and'' at the end of 
                subparagraph (M), and by striking the comma at the end 
                of subparagraph (N) (as so redesignated) and inserting 
                a period.
                    (D) Paragraph (2) of section 1324(b) of title 31, 
                United States Code, is amended by striking ``6428, or 
                6431,'' and inserting ``or 6431''.
            (113) Advance payment of portion of increased child credit 
        for 2003.--Subchapter B of chapter 65 is amended by striking 
        section 6429 (and by striking the item relating to such section 
        in the table of sections for such subchapter).
            (114) Failure by corporation to pay estimated income tax.--
        Clause (i) of section 6655(g)(4)(A) is amended by striking 
        ``(or the corresponding provisions of prior law)''.
            (115) Retirement.--Section 7447(i)(3)(B)(ii) is amended by 
        striking ``at 4 percent per annum to December 31, 1947, and 3 
        percent per annum thereafter'', and inserting ``at 3 percent 
        per annum''.
            (116) Annuities to surviving spouses and dependent children 
        of judges.--
                    (A) Paragraph (2) of section 7448(a) is amended--
                            (i) by striking ``or under section 1106 of 
                        the Internal Revenue Code of 1939'', and
                            (ii) by striking ``or pursuant to section 
                        1106(d) of the Internal Revenue Code of 1939''.
                    (B) Subsection (g) of section 7448 is amended by 
                striking ``or other than pursuant to section 1106 of 
                the Internal Revenue Code of 1939''.
                    (C) Subsections (g), (j)(1), and (j)(2) of section 
                7448 are each amended by striking ``at 4 percent per 
                annum to December 31, 1947, and 3 percent per annum 
                thereafter'' and inserting ``at 3 percent per annum''.
            (117) Merchant marine capital construction funds.--
        Paragraph (4) of section 7518(g) is amended by striking ``any 
        nonqualified withdrawal'' and all that follows through ```shall 
        be determined'' and inserting ``any nonqualified withdrawal 
        shall be determined''.
            (118) Valuation tables.--
                    (A) Subsection (c) of section 7520 is amended by 
                striking paragraph (2) and redesignating paragraph (3) 
                as paragraph (2).
                    (B) Paragraph (2) of section 7520(c) (as 
                redesignated by subparagraph (A)) is amended--
                            (i) by striking ``Not later than December 
                        31, 1989, the'' and inserting ``The'', and
                            (ii) by striking ``thereafter'' in the last 
                        sentence thereof.
            (119) Definition of employee.--Section 7701(a)(20) is 
        amended by striking ``chapter 21'' and all that follows and 
        inserting ``chapter 21.''.
    (b) Effective Date.--
            (1) General rule.--Except as otherwise provided in 
        subsection (a) or paragraph (2) of this subsection, the 
        amendments made by this section shall take effect on the date 
        of enactment of this Act.
            (2) Savings provision.--If--
                    (A) any provision amended or repealed by the 
                amendments made by this section applied to--
                            (i) any transaction occurring before the 
                        date of the enactment of this Act,
                            (ii) any property acquired before such date 
                        of enactment, or
                            (iii) any item of income, loss, deduction, 
                        or credit taken into account before such date 
                        of enactment, and
                    (B) the treatment of such transaction, property, or 
                item under such provision would (without regard to the 
                amendments or repeals made by this section) affect the 
                liability for tax for periods ending after date of 
                enactment, nothing in the amendments or repeals made by 
                this section shall be construed to affect the treatment 
                of such transaction, property, or item for purposes of 
                determining liability for tax for periods ending after 
                such date of enactment.

                 TITLE III--JOINT COMMITTEE ON TAXATION

SEC. 301. INCREASED REFUND AND CREDIT THRESHOLD FOR JOINT COMMITTEE ON 
              TAXATION REVIEW OF C CORPORATION RETURN.

    (a) In General.--Subsections (a) and (b) of section 6405 are each 
amended by inserting ``($5,000,000 in the case of a C corporation)'' 
after ``$2,000,000''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act, except that such 
amendment shall not apply with respect to any refund or credit with 
respect to a report that has been made before such date under section 
6405 of the Internal Revenue Code of 1986.

                      TITLE IV--BUDGETARY EFFECTS

SEC. 401. BUDGETARY EFFECTS.

    (a) Paygo Scorecard.--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.
    (b) Senate Paygo Scorecard.--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).

       DIVISION B--ACHIEVING A BETTER LIFE EXPERIENCE ACT OF 2014

SEC. 1. SHORT TITLE; ETC.

    (a) Short Title.--This division may be cited as the ``Achieving a 
Better Life Experience Act of 2014'' or the ``ABLE Act of 2014''.
    (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.

                    TITLE I--QUALIFIED ABLE PROGRAMS

SEC. 101. PURPOSES.

    The purposes of this title are as follows:
            (1) To encourage and assist individuals and families in 
        saving private funds for the purpose of supporting individuals 
        with disabilities to maintain health, independence, and quality 
        of life.
            (2) To provide secure funding for disability-related 
        expenses on behalf of designated beneficiaries with 
        disabilities that will supplement, but not supplant, benefits 
        provided through private insurance, the Medicaid program under 
        title XIX of the Social Security Act, the supplemental security 
        income program under title XVI of such Act, the beneficiary's 
        employment, and other sources.

SEC. 102. QUALIFIED ABLE PROGRAMS.

    (a) In General.--Subchapter F of chapter 1 is amended by inserting 
after section 529 the following new section:

``SEC. 529A. QUALIFIED ABLE PROGRAMS.

    ``(a) General Rule.--A qualified ABLE program shall be exempt from 
taxation under this subtitle. Notwithstanding the preceding sentence, 
such program shall be subject to the taxes imposed by section 511 
(relating to imposition of tax on unrelated business income of 
charitable organizations).
    ``(b) Qualified ABLE Program.--For purposes of this section--
            ``(1) In general.--The term `qualified ABLE program' means 
        a program established and maintained by a State, or agency or 
        instrumentality thereof--
                    ``(A) under which a person may make contributions 
                for a taxable year, for the benefit of an individual 
                who is an eligible individual for such taxable year, to 
                an ABLE account which is established for the purpose of 
                meeting the qualified disability expenses of the 
                designated beneficiary of the account,
                    ``(B) which limits a designated beneficiary to 1 
                ABLE account for purposes of this section,
                    ``(C) which allows for the establishment of an ABLE 
                account only for a designated beneficiary who is a 
                resident of such State or a resident of a contracting 
                State, and
                    ``(D) which meets the other requirements of this 
                section.
            ``(2) Cash contributions.--A program shall not be treated 
        as a qualified ABLE program unless it provides that no 
        contribution will be accepted--
                    ``(A) unless it is in cash, or
                    ``(B) except in the case of contributions under 
                subsection (c)(1)(C), if such contribution to an ABLE 
                account would result in aggregate contributions from 
                all contributors to the ABLE account for the taxable 
                year exceeding the amount in effect under section 
                2503(b) for the calendar year in which the taxable year 
                begins.
        For purposes of this paragraph, rules similar to the rules of 
        section 408(d)(4) (determined without regard to subparagraph 
        (B) thereof) shall apply.
            ``(3) Separate accounting.--A program shall not be treated 
        as a qualified ABLE program unless it provides separate 
        accounting for each designated beneficiary.
            ``(4) Limited investment direction.--A program shall not be 
        treated as a qualified ABLE program unless it provides that any 
        designated beneficiary under such program may, directly or 
        indirectly, direct the investment of any contributions to the 
        program (or any earnings thereon) no more than 2 times in any 
        calendar year.
            ``(5) No pledging of interest as security.--A program shall 
        not be treated as a qualified ABLE program if it allows any 
        interest in the program or any portion thereof to be used as 
        security for a loan.
            ``(6) Prohibition on excess contributions.--A program shall 
        not be treated as a qualified ABLE program unless it provides 
        adequate safeguards to prevent aggregate contributions on 
        behalf of a designated beneficiary in excess of the limit 
        established by the State under section 529(b)(6). For purposes 
        of the preceding sentence, aggregate contributions include 
        contributions under any prior qualified ABLE program of any 
        State or agency or instrumentality thereof.
    ``(c) Tax Treatment.--
            ``(1) Distributions.--
                    ``(A) In general.--Any distribution under a 
                qualified ABLE program shall be includible in the gross 
                income of the distributee in the manner as provided 
                under section 72 to the extent not excluded from gross 
                income under any other provision of this chapter.
                    ``(B) Distributions for qualified disability 
                expenses.--For purposes of this paragraph, if 
                distributions from a qualified ABLE program--
                            ``(i) do not exceed the qualified 
                        disability expenses of the designated 
                        beneficiary, no amount shall be includible in 
                        gross income, and
                            ``(ii) in any other case, the amount 
                        otherwise includible in gross income shall be 
                        reduced by an amount which bears the same ratio 
                        to such amount as such expenses bear to such 
                        distributions.
                    ``(C) Change in designated beneficiaries or 
                programs.--
                            ``(i) Rollovers from able accounts.--
                        Subparagraph (A) shall not apply to any amount 
                        paid or distributed from an ABLE account to the 
                        extent that the amount received is paid, not 
                        later than the 60th day after the date of such 
                        payment or distribution, into another ABLE 
                        account for the benefit of the same designated 
                        beneficiary or an eligible individual who is a 
                        family member of the designated beneficiary.
                            ``(ii) Change in designated 
                        beneficiaries.--Any change in the designated 
                        beneficiary of an interest in a qualified ABLE 
                        program during a taxable year shall not be 
                        treated as a distribution for purposes of 
                        subparagraph (A) if the new beneficiary is an 
                        eligible individual for such taxable year and a 
                        member of the family of the former beneficiary.
                            ``(iii) Limitation on certain rollovers.--
                        Clause (i) shall not apply to any transfer if 
                        such transfer occurs within 12 months from the 
                        date of a previous transfer to any qualified 
                        ABLE program for the benefit of the designated 
                        beneficiary.
                    ``(D) Operating rules.--For purposes of applying 
                section 72--
                            ``(i) except to the extent provided by the 
                        Secretary, all distributions during a taxable 
                        year shall be treated as one distribution, and
                            ``(ii) except to the extent provided by the 
                        Secretary, the value of the contract, income on 
                        the contract, and investment in the contract 
                        shall be computed as of the close of the 
                        calendar year in which the taxable year begins.
            ``(2) Gift tax rules.--For purposes of chapters 12 and 13--
                    ``(A) Contributions.--Any contribution to a 
                qualified ABLE program on behalf of any designated 
                beneficiary--
                            ``(i) shall be treated as a completed gift 
                        to such designated beneficiary which is not a 
                        future interest in property, and
                            ``(ii) shall not be treated as a qualified 
                        transfer under section 2503(e).
                    ``(B) Treatment of distributions.--In no event 
                shall a distribution from an ABLE account to such 
                account's designated beneficiary be treated as a 
                taxable gift.
                    ``(C) Treatment of transfer to new designated 
                beneficiary.--The taxes imposed by chapters 12 and 13 
                shall not apply to a transfer by reason of a change in 
                the designated beneficiary under subsection (c)(1)(C).
            ``(3) Additional tax for distributions not used for 
        disability expenses.--
                    ``(A) In general.--The tax imposed by this chapter 
                for any taxable year on any taxpayer who receives a 
                distribution from a qualified ABLE program which is 
                includible in gross income shall be increased by 10 
                percent of the amount which is so includible.
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                if the payment or distribution is made to a beneficiary 
                (or to the estate of the designated beneficiary) on or 
                after the death of the designated beneficiary.
                    ``(C) Contributions returned before certain date.--
                Subparagraph (A) shall not apply to the distribution of 
                any contribution made during a taxable year on behalf 
                of the designated beneficiary if--
                            ``(i) such distribution is received on or 
                        before the day prescribed by law (including 
                        extensions of time) for filing such designated 
                        beneficiary's return for such taxable year, and
                            ``(ii) such distribution is accompanied by 
                        the amount of net income attributable to such 
                        excess contribution.
                Any net income described in clause (ii) shall be 
                included in gross income for the taxable year in which 
                such excess contribution was made.
            ``(4) Loss of able account treatment.--If an ABLE account 
        is established for a designated beneficiary, no account 
        subsequently established for such beneficiary shall be treated 
        as an ABLE account. The preceding sentence shall not apply in 
        the case of an account established for purposes of a rollover 
        described in paragraph (1)(C)(i) of this section if the 
        transferor account is closed as of the end of the 60th day 
        referred to in paragraph (1)(C)(i).
    ``(d) Reports.--
            ``(1) In general.--Each officer or employee having control 
        of the qualified ABLE program or their designee shall make such 
        reports regarding such program to the Secretary and to 
        designated beneficiaries with respect to contributions, 
        distributions, the return of excess contributions, and such 
        other matters as the Secretary may require.
            ``(2) Certain aggregated information.--For research 
        purposes, the Secretary shall make available to the public 
        reports containing aggregate information, by diagnosis and 
        other relevant characteristics, on contributions and 
        distributions from the qualified ABLE program. In carrying out 
        the preceding sentence an item may not be made available to the 
        public if such item can be associated with, or otherwise 
        identify, directly or indirectly, a particular individual.
            ``(3) Notice of establishment of able account.--A qualified 
        ABLE program shall submit a notice to the Secretary upon the 
        establishment of an ABLE account. Such notice shall contain the 
        name and State of residence of the designated beneficiary and 
        such other information as the Secretary may require.
            ``(4) Electronic distribution statements.--For purposes of 
        section 4 of the Achieving a Better Life Experience Act of 
        2014, States shall submit electronically on a monthly basis to 
        the Commissioner of Social Security, in the manner specified by 
        the Commissioner, statements on relevant distributions and 
        account balances from all ABLE accounts.
            ``(5) Requirements.--The reports and notices required by 
        paragraphs (1), (2), and (3) shall be filed at such time and in 
        such manner and furnished to such individuals at such time and 
        in such manner as may be required by the Secretary.
    ``(e) Other Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Eligible individual.--An individual is an eligible 
        individual for a taxable year if during such taxable year--
                    ``(A) the individual is entitled to benefits based 
                on blindness or disability under title II or XVI of the 
                Social Security Act, and such blindness or disability 
                occurred before the date on which the individual 
                attained age 26, or
                    ``(B) a disability certification with respect to 
                such individual is filed with the Secretary for such 
                taxable year.
            ``(2) Disability certification.--
                    ``(A) In general.--The term `disability 
                certification' means, with respect to an individual, a 
                certification to the satisfaction of the Secretary by 
                the individual or the parent or guardian of the 
                individual that--
                            ``(i) certifies that--
                                    ``(I) the individual has a 
                                medically determinable physical or 
                                mental impairment, which results in 
                                marked and severe functional 
                                limitations, and which can be expected 
                                to result in death or which has lasted 
                                or can be expected to last for a 
                                continuous period of not less than 12 
                                months, or is blind (within the meaning 
                                of section 1614(a)(2) of the Social 
                                Security Act), and
                                    ``(II) such blindness or disability 
                                occurred before the date on which the 
                                individual attained age 26, and
                            ``(ii) includes a copy of the individual's 
                        diagnosis relating to the individual's relevant 
                        impairment or impairments, signed by a 
                        physician meeting the criteria of section 
                        1861(r)(1) of the Social Security Act.
                    ``(B) Restriction on use of certification.--No 
                inference may be drawn from a disability certification 
                for purposes of establishing eligibility for benefits 
                under title II, XVI, or XIX of the Social Security Act.
            ``(3) Designated beneficiary.--The term `designated 
        beneficiary' in connection with an ABLE account established 
        under a qualified ABLE program means the eligible individual 
        who established an ABLE account and is the owner of such 
        account.
            ``(4) Member of family.--The term `member of the family' 
        means, with respect to any designated beneficiary, an 
        individual who bears a relationship to such beneficiary which 
        is described in subparagraph section 152(d)(2)(B). For purposes 
        of the preceding sentence, a rule similar to the rule of 
        section 152(f)(1)(B) shall apply.
            ``(5) Qualified disability expenses.--The term `qualified 
        disability expenses' means any expenses related to the eligible 
        individual's blindness or disability which are made for the 
        benefit of an eligible individual who is the designated 
        beneficiary, including the following expenses: education, 
        housing, transportation, employment training and support, 
        assistive technology and personal support services, health, 
        prevention and wellness, financial management and 
        administrative services, legal fees, expenses for oversight and 
        monitoring, funeral and burial expenses, and other expenses, 
        which are approved by the Secretary under regulations and 
        consistent with the purposes of this section.
            ``(6) ABLE account.--The term `ABLE account' means an 
        account established by an eligible individual, owned by such 
        eligible individual, and maintained under a qualified ABLE 
        program.
            ``(7) Contracting state.--The term `contracting State' 
        means a State without a qualified ABLE program which has 
        entered into a contract with a State with a qualified ABLE 
        program to provide residents of the contracting State access to 
        a qualified ABLE program.
    ``(f) Transfer to State.--Subject to any outstanding payments due 
for qualified disability expenses, upon the death of the designated 
beneficiary, all amounts remaining in the qualified ABLE account not in 
excess of the amount equal to the total medical assistance paid for the 
designated beneficiary after the establishment of the account, net of 
any premiums paid from the account or paid by or on behalf of the 
beneficiary to a Medicaid Buy-In program under any State Medicaid plan 
established under title XIX of the Social Security Act, shall be 
distributed to such State upon filing of a claim for payment by such 
State. For purposes of this paragraph, the State shall be a creditor of 
an ABLE account and not a beneficiary. Subsection (c)(3) shall not 
apply to a distribution under the preceding sentence.
    ``(g) Regulations.--The Secretary shall prescribe such regulations 
or other guidance as the Secretary determines necessary or appropriate 
to carry out the purposes of this section, including regulations--
            ``(1) to enforce the 1 ABLE account per eligible individual 
        limit,
            ``(2) providing for the information required to be 
        presented to open an ABLE account,
            ``(3) to generally define qualified disability expenses,
            ``(4) developed in consultation with the Commissioner of 
        Social Security, relating to disability certifications and 
        determinations of disability, including those conditions deemed 
        to meet the requirements of subsection (e)(1)(B),
            ``(5) to prevent fraud and abuse with respect to amounts 
        claimed as qualified disability expenses,
            ``(6) under chapters 11, 12, and 13 of this title, and
            ``(7) to allow for transfers from one ABLE account to 
        another ABLE account.''.
    (b) Tax on Excess Contributions.--
            (1) In general.--Subsection (a) of section 4973 (relating 
        to tax on excess contributions to certain tax-favored accounts 
        and annuities) is amended by striking ``or'' at the end of 
        paragraph (4), by inserting ``or'' at the end of paragraph (5), 
        and by inserting after paragraph (5) the following new 
        paragraph:
            ``(6) an ABLE account (within the meaning of section 
        529A),''.
            (2) Excess contribution.--Section 4973 is amended by adding 
        at the end the following new subsection:
    ``(h) Excess Contributions to ABLE Account.--For purposes of this 
section--
            ``(1) In general.--In the case of an ABLE account (within 
        the meaning of section 529A), the term `excess contributions' 
        means the amount by which the amount contributed for the 
        taxable year to such account (other than contributions under 
        section 529A(c)(1)(C)) exceeds the contribution limit under 
        section 529A(b)(2)(B).
            ``(2) Special rule.--For purposes of this subsection, any 
        contribution which is distributed out of the ABLE account in a 
        distribution to which the last sentence of section 529A(b)(2) 
        applies shall be treated as an amount not contributed.''.
    (c) Penalty for Failure to File Reports.--Section 6693(a)(2) is 
amended by striking ``and'' at the end of subparagraph (D), by 
redesignating subparagraph (E) as subparagraph (F), and by inserting 
after subparagraph (D) the following:
                    ``(E) section 529A(d) (relating to qualified ABLE 
                programs), and''.
    (d) Records.--Section 552a(a)(8)(B) of title 5, United States Code, 
is amended--
            (1) in clause (viii), by striking ``or'' at the end;
            (2) in clause (ix), by adding ``or'' at the end; and
            (3) by adding at the end the following new clause:
                            ``(x) matches performed pursuant to section 
                        3(d)(4) of the Achieving a Better Life 
                        Experience Act of 2014;''.
    (e) Other Conforming Amendments.--
            (1) Section 26(b)(2) is amended by striking ``and'' at the 
        end of subparagraph (W), by striking the period at the end of 
        subparagraph (X) and inserting ``, and'', and by inserting 
        after subparagraph (X) the following:
                    ``(Y) section 529A(c)(3)(A) (relating to additional 
                tax on ABLE account distributions not used for 
                qualified disability expenses).''.
            (2) Section 877A is amended--
                    (A) in subsection (e)(2) by inserting ``a qualified 
                ABLE program (as defined in section 529A),'' after 
                ``529),'', and
                    (B) in subsection (g)(6) by inserting 
                ``529A(c)(3),'' after ``529(c)(6),''.
            (3) Section 4965(c) is amended by striking ``or'' at the 
        end of paragraph (6), by striking the period at the end of 
        paragraph (7) and inserting ``, or'', and by inserting after 
        paragraph (7) the following new paragraph:
            ``(8) a program described in section 529A.''.
            (4) The heading for part VIII of subchapter F of chapter 1 
        is amended by striking ``higher education'' and inserting 
        ``certain''.
            (5) The item in the table of parts for subchapter F of 
        chapter 1 relating to part VIII is amended to read as follows:

               ``Part VIII. Certain Savings Entities.''.

            (6) The table of sections for part VIII of subchapter F of 
        chapter 1 is amended by inserting after the item relating to 
        section 529 the following new item:

``Sec. 529A. Qualified ABLE programs.''.
            (7) Paragraph (4) of section 1027(g) of the Consumer 
        Financial Protection Act of 2010 (12 U.S.C. 5517(g)(4)) is 
        amended by inserting ``, 529A'' after ``529''.
    (f) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to taxable years beginning after December 31, 2014.
            (2) Regulations.--The Secretary of the Treasury (or the 
        Secretary's designee) shall promulgate the regulations or other 
        guidance required under section 529A(g) of the Internal Revenue 
        Code of 1986, as added by subsection (a), not later than 6 
        months after the date of the enactment of this Act.

SEC. 103. TREATMENT OF ABLE ACCOUNTS UNDER CERTAIN FEDERAL PROGRAMS.

    (a) Account Funds Disregarded for Purposes of Certain Other Means-
Tested Federal Programs.--Notwithstanding any other provision of 
Federal law that requires consideration of 1 or more financial 
circumstances of an individual, for the purpose of determining 
eligibility to receive, or the amount of, any assistance or benefit 
authorized by such provision to be provided to or for the benefit of 
such individual, any amount (including earnings thereon) in the ABLE 
account (within the meaning of section 529A of the Internal Revenue 
Code of 1986) of such individual, any contributions to the ABLE account 
of the individual, and any distribution for qualified disability 
expenses (as defined in subsection (e)(5) of such section) shall be 
disregarded for such purpose with respect to any period during which 
such individual maintains, makes contributions to, or receives 
distributions from such ABLE account, except that, in the case of the 
supplemental security income program under title XVI of the Social 
Security Act--
            (1) a distribution for housing expenses (within the meaning 
        of such subsection) shall not be so disregarded, and
            (2) in the case of such program, any amount (including such 
        earnings) in such ABLE account shall be considered a resource 
        of the designated beneficiary to the extent that such amount 
        exceeds $100,000.
    (b) Suspension of SSI Benefits During Periods of Excessive Account 
Funds.--
            (1) In general.--The benefits of an individual under the 
        supplemental security income program under title XVI of the 
        Social Security Act shall not be terminated, but shall be 
        suspended, by reason of excess resources of the individual 
        attributable to an amount in the ABLE account (within the 
        meaning of section 529A of the Internal Revenue Code of 1986) 
        of the individual not disregarded under subsection (a) of this 
        section.
            (2) No impact on medicaid eligibility.--An individual who 
        would be receiving payment of such supplemental security income 
        benefits but for the application of paragraph (1) shall be 
        treated for purposes of title XIX of the Social Security Act as 
        if the individual continued to be receiving payment of such 
        benefits.
    (c) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.

SEC. 104. TREATMENT OF ABLE ACCOUNTS IN BANKRUPTCY.

    (a) Exclusion From Property of the Estate.--Section 541(b) of the 
title 11, United States Code, is amended--
            (1) in paragraph (8), by striking ``or'' at the end;
            (2) in paragraph (9), by striking the period at the end and 
        inserting a semicolon and ``or''; and
            (3) by inserting after paragraph (9) the following:
            ``(10) funds placed in an account of a qualified ABLE 
        program (as defined in section 529A(b) of the Internal Revenue 
        Code of 1986) not later than 365 days before the date of the 
        filing of the petition in a case under this title, but--
                    ``(A) only if the designated beneficiary of such 
                account was a child, stepchild, grandchild, or 
                stepgrandchild of the debtor for the taxable year for 
                which funds were placed in such account;
                    ``(B) only to the extent that such funds--
                            ``(i) are not pledged or promised to any 
                        entity in connection with any extension of 
                        credit; and
                            ``(ii) are not excess contributions (as 
                        described in section 4973(h) of the Internal 
                        Revenue Code of 1986); and
                    ``(C) in the case of funds placed in all such 
                accounts having the same designated beneficiary not 
                earlier than 720 days nor later than 365 days before 
                such date, only so much of such funds as does not 
                exceed $6,225.''.
    (b) Debtor's Monthly Expenses.--Section 707(b)(2)(A)(ii)(II) of 
title 11, United States Code, is amended by adding at the end ``Such 
monthly expenses may include, if applicable, contributions to an 
account of a qualified ABLE program to the extent such contributions 
are not excess contributions (as described in section 4973(h) of the 
Internal Revenue Code of 1986) and if the designated beneficiary of 
such account is a child, stepchild, grandchild, or stepgrandchild of 
the debtor.''.
    (c) Record of Debtor's Interest.--Section 521(c) of title 11, 
United States Code, is amended by inserting ``, an interest in an 
account in a qualified ABLE program (as defined in section 529A(b) of 
such Code,'' after ``Internal Revenue Code of 1986)''.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to cases commenced under title 11, United States 
Code, on or after the date of the enactment of this Act.

SEC. 105. INVESTMENT DIRECTION RULE FOR 529 PLANS.

    (a) Amendments Relating to Investment Direction Rule for 529 
Plans.--
            (1) Paragraph (4) of section 529(b) is amended by striking 
        ``may not directly or indirectly'' and all that follows and 
        inserting ``may, directly or indirectly, direct the investment 
        of any contributions to the program (or any earnings thereon) 
        no more than 2 times in any calendar year.''.
            (2) The heading of paragraph (4) of section 529(b)is 
        amended by striking ``No'' and inserting ``Limited''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2014.

                           TITLE II--OFFSETS

SEC. 201. CORRECTION TO WORKERS COMPENSATION OFFSET AGE.

    (a) Retirement Age.--Section 224(a) of the Social Security Act (42 
U.S.C. 424a(a)) is amended, in the matter preceding paragraph (1), by 
striking ``the age of 65'' and inserting ``retirement age (as defined 
in section 216(l)(1))''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to any individual who attains 65 years of age on or 
after the date that is 12 months after the date of the enactment of 
this Act.

SEC. 202. ACCELERATED APPLICATION OF RELATIVE VALUE TARGETS FOR 
              MISVALUED SERVICES IN THE MEDICARE PHYSICIAN FEE 
              SCHEDULE.

    Section 1848(c) of the Social Security Act (42 U.S.C. 1395w-4(c)) 
is amended--
            (1) in subclause (VIII) of paragraph (2)(B)(v), as added by 
        section 220(d)(2) of the Protecting Access to Medicare Act of 
        2014 (Public Law 113-93)--
                    (A) by striking ``2017'' and inserting ``2016''; 
                and
                    (B) by redesignating such subclause as subclause 
                (IX);
            (2) in paragraph (2)(O)--
                    (A) in the matter preceding clause (i), by striking 
                ``2017 through 2020'' and inserting ``2016 through 
                2018'';
                    (B) in clause (iii), by striking ``2017'' and 
                inserting ``2016''; and
                    (C) in clause (v), by inserting ``(or, for 2016, 
                1.0 percent)'' after ``0.5 percent''; and
            (3) in paragraph (7), by striking ``2017'' and inserting 
        ``2016''.

SEC. 203. CONSISTENT TREATMENT OF VACUUM ERECTION SYSTEMS IN MEDICARE 
              PARTS B AND D.

     Section 1834(a)(1) of the Social Security Act (42 U.S.C. 
1395m(a)(1)) is amended by adding at the end the following new 
subparagraph:
                    ``(I) Treatment of vacuum erection systems.--
                Effective for items and services furnished on and after 
                July 1, 2015, vacuum erection systems described as 
                prosthetic devices described in section 1861(s)(8) 
                shall be treated in the same manner as erectile 
                dysfunction drugs are treated for purposes of section 
                1860D-2(e)(2)(A).''.

SEC. 204. ONE-YEAR DELAY OF IMPLEMENTATION OF ORAL-ONLY POLICY UNDER 
              MEDICARE ESRD PROSPECTIVE PAYMENT SYSTEM.

    Section 632(b)(1) of the American Taxpayer Relief Act of 2012 (42 
U.S.C. 1395rr note), as amended by section 217(a)(1) of the Protecting 
Access to Medicare Act of 2014 (Public Law 113-93), is amended by 
striking ``2024'' and inserting ``2025''.

SEC. 205. MODIFICATION RELATING TO INLAND WATERWAYS TRUST FUND 
              FINANCING RATE.

    (a) In General.--Section 4042(b)(2)(A) is amended to read as 
follows:
                    ``(A) The Inland Waterways Trust Fund financing 
                rate is 29 cents per gallon.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to fuel used after March 31, 2015.

SEC. 206. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.

    (a) Employment Taxes.--Chapter 25 is amended by adding at the end 
the following new section:

``SEC. 3511. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.

    ``(a) General Rules.--For purposes of the taxes, and other 
obligations, imposed by this subtitle--
            ``(1) a certified professional employer organization shall 
        be treated as the employer (and no other person shall be 
        treated as the employer) of any work site employee performing 
        services for any customer of such organization, but only with 
        respect to remuneration remitted by such organization to such 
        work site employee, and
            ``(2) the exemptions, exclusions, definitions, and other 
        rules which are based on type of employer and which would (but 
        for paragraph (1)) apply shall apply with respect to such taxes 
        imposed on such remuneration.
    ``(b) Successor Employer Status.--For purposes of sections 
3121(a)(1), 3231(e)(2)(C), and 3306(b)(1)--
            ``(1) a certified professional employer organization 
        entering into a service contract with a customer with respect 
        to a work site employee shall be treated as a successor 
        employer and the customer shall be treated as a predecessor 
        employer during the term of such service contract, and
            ``(2) a customer whose service contract with a certified 
        professional employer organization is terminated with respect 
        to a work site employee shall be treated as a successor 
        employer and the certified professional employer organization 
        shall be treated as a predecessor employer.
    ``(c) Liability of Certified Professional Employer Organization.--
Solely for purposes of its liability for the taxes and other 
obligations imposed by this subtitle--
            ``(1) a certified professional employer organization shall 
        be treated as the employer of any individual (other than a work 
        site employee or a person described in subsection (f)) who is 
        performing services covered by a contract meeting the 
        requirements of section 7705(e)(2), but only with respect to 
        remuneration remitted by such organization to such individual, 
        and
            ``(2) the exemptions, exclusions, definitions, and other 
        rules which are based on type of employer and which would (but 
        for paragraph (1)) apply shall apply with respect to such taxes 
        imposed on such remuneration.
    ``(d) Treatment of Credits.--
            ``(1) In general.--For purposes of any credit specified in 
        paragraph (2)--
                    ``(A) such credit with respect to a work site 
                employee performing services for the customer applies 
                to the customer, not the certified professional 
                employer organization,
                    ``(B) the customer, and not the certified 
                professional employer organization, shall take into 
                account wages and employment taxes--
                            ``(i) paid by the certified professional 
                        employer organization with respect to the work 
                        site employee, and
                            ``(ii) for which the certified professional 
                        employer organization receives payment from the 
                        customer, and
                    ``(C) the certified professional employer 
                organization shall furnish the customer and the 
                Secretary with any information necessary for the 
                customer to claim such credit.
            ``(2) Credits specified.--A credit is specified in this 
        paragraph if such credit is allowed under--
                    ``(A) section 41 (credit for increasing research 
                activity),
                    ``(B) section 45A (Indian employment credit),
                    ``(C) section 45B (credit for portion of employer 
                social security taxes paid with respect to employee 
                cash tips),
                    ``(D) section 45C (clinical testing expenses for 
                certain drugs for rare diseases or conditions),
                    ``(E) section 45R (employee health insurance 
                expenses of small employers),
                    ``(F) section 51 (work opportunity credit),
                    ``(G) section 1396 (empowerment zone employment 
                credit), and
                    ``(H) any other section as provided by the 
                Secretary.
    ``(e) Special Rule for Related Party.--This section shall not apply 
in the case of a customer which bears a relationship to a certified 
professional employer organization described in section 267(b) or 
707(b). For purposes of the preceding sentence, such sections shall be 
applied by substituting `10 percent' for `50 percent'.
    ``(f) Special Rule for Certain Individuals.--For purposes of the 
taxes imposed under this subtitle, an individual with net earnings from 
self-employment derived from the customer's trade or business 
(including a partner in a partnership that is a customer) is not a work 
site employee with respect to remuneration paid by a certified 
professional employer organization.
    ``(g) Reporting Requirements and Obligations.--The Secretary shall 
develop such reporting and recordkeeping rules, regulations, and 
procedures as the Secretary determines necessary or appropriate to 
ensure compliance with this title by certified professional employer 
organizations or persons that have been so certified. Such rules shall 
include--
            ``(1) notification of the Secretary in such manner as the 
        Secretary shall prescribe in the case of the commencement or 
        termination of a service contract described in section 
        7705(e)(2) between such a person and a customer, and the 
        employer identification number of such customer,
            ``(2) such information as the Secretary determines 
        necessary for the customer to claim the credits identified in 
        subsection (d) and the manner in which such information is to 
        be provided, as prescribed by the Secretary, and
            ``(3) such other information as the Secretary determines is 
        essential to promote compliance with respect to the credits 
        identified in subsection (d) and section 3302, and
shall be designed in a manner which streamlines, to the extent 
possible, the application of requirements of this section and section 
7705, the exchange of information between a certified professional 
employer organization and its customers, and the reporting and 
recordkeeping obligations of the certified professional employer 
organization.
    ``(h) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary or appropriate to carry out the purposes of this 
section.''.
    (b) Certified Professional Employer Organization Defined.--Chapter 
79 is amended by adding at the end the following new section:

``SEC. 7705. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.

    ``(a) In General.--For purposes of this title, the term `certified 
professional employer organization' means a person who applies to be 
treated as a certified professional employer organization for purposes 
of section 3511 and has been certified by the Secretary as meeting the 
requirements of subsection (b).
    ``(b) Certification Requirements.--A person meets the requirements 
of this subsection if such person--
            ``(1) demonstrates that such person (and any owner, 
        officer, and other persons as may be specified in regulations) 
        meets such requirements as the Secretary shall establish, 
        including requirements with respect to tax status, background, 
        experience, business location, and annual financial audits,
            ``(2) agrees that it will satisfy the bond and independent 
        financial review requirements of subsection (c) on an ongoing 
        basis,
            ``(3) agrees that it will satisfy such reporting 
        obligations as may be imposed by the Secretary,
            ``(4) computes its taxable income using an accrual method 
        of accounting unless the Secretary approves another method,
            ``(5) agrees to verify on such periodic basis as the 
        Secretary may prescribe that it continues to meet the 
        requirements of this subsection, and
            ``(6) agrees to notify the Secretary in writing within such 
        time as the Secretary may prescribe of any change that 
        materially affects the continuing accuracy of any agreement or 
        information that was previously made or provided under this 
        subsection.
    ``(c) Bond and Independent Financial Review.--
            ``(1) In general.--An organization meets the requirements 
        of this paragraph if such organization--
                    ``(A) meets the bond requirements of paragraph (2), 
                and
                    ``(B) meets the independent financial review 
                requirements of paragraph (3).
            ``(2) Bond.--
                    ``(A) In general.--A certified professional 
                employer organization meets the requirements of this 
                paragraph if the organization has posted a bond for the 
                payment of taxes under subtitle C (in a form acceptable 
                to the Secretary) that is in an amount at least equal 
                to the amount specified in subparagraph (B).
                    ``(B) Amount of bond.--For the period April 1 of 
                any calendar year through March 31 of the following 
                calendar year, the amount of the bond required is equal 
                to the greater of--
                            ``(i) 5 percent of the organization's 
                        liability under section 3511 for taxes imposed 
                        by subtitle C during the preceding calendar 
                        year (but not to exceed $1,000,000), or
                            ``(ii) $50,000.
            ``(3) Independent financial review requirements.--A 
        certified professional employer organization meets the 
        requirements of this paragraph if such organization--
                    ``(A) has, as of the most recent audit date, caused 
                to be prepared and provided to the Secretary (in such 
                manner as the Secretary may prescribe) an opinion of an 
                independent certified public accountant as to whether 
                the certified professional employer organization's 
                financial statements are presented fairly in accordance 
                with generally accepted accounting principles, and
                    ``(B) provides to the Secretary an assertion 
                regarding Federal employment tax payments and an 
                examination level attestation on such assertion from an 
                independent certified public accountant not later than 
                the last day of the second month beginning after the 
                end of each calendar quarter.
        Such assertion shall state that the organization has withheld 
        and made deposits of all taxes imposed by chapters 21, 22, and 
        24 in accordance with regulations imposed by the Secretary for 
        such calendar quarter and such examination level attestation 
        shall state that such assertion is fairly stated, in all 
        material respects.
            ``(4) Controlled group rules.--For purposes of the 
        requirements of paragraphs (2) and (3), all certified 
        professional employer organizations that are members of a 
        controlled group within the meaning of sections 414(b) and (c) 
        shall be treated as a single organization.
            ``(5) Failure to file assertion and attestation.--If the 
        certified professional employer organization fails to file the 
        assertion and attestation required by paragraph (3) with 
        respect to any calendar quarter, then the requirements of 
        paragraph (3) with respect to such failure shall be treated as 
        not satisfied for the period beginning on the due date for such 
        attestation.
            ``(6) Audit date.--For purposes of paragraph (3)(A), the 
        audit date shall be six months after the completion of the 
        organization's fiscal year.
    ``(d) Suspension and Revocation Authority.--The Secretary may 
suspend or revoke a certification of any person under subsection (b) 
for purposes of section 3511 if the Secretary determines that such 
person is not satisfying the agreements or requirements of subsections 
(b) or (c), or fails to satisfy applicable accounting, reporting, 
payment, or deposit requirements.
    ``(e) Work Site Employee.--For purposes of this title--
            ``(1) In general.--The term `work site employee' means, 
        with respect to a certified professional employer organization, 
        an individual who--
                    ``(A) performs services for a customer pursuant to 
                a contract which is between such customer and the 
                certified professional employer organization and which 
                meets the requirements of paragraph (2), and
                    ``(B) performs services at a work site meeting the 
                requirements of paragraph (3).
            ``(2) Service contract requirements.--A contract meets the 
        requirements of this paragraph with respect to an individual 
        performing services for a customer if such contract is in 
        writing and provides that the certified professional employer 
        organization shall--
                    ``(A) assume responsibility for payment of wages to 
                such individual, without regard to the receipt or 
                adequacy of payment from the customer for such 
                services,
                    ``(B) assume responsibility for reporting, 
                withholding, and paying any applicable taxes under 
                subtitle C, with respect to such individual's wages, 
                without regard to the receipt or adequacy of payment 
                from the customer for such services,
                    ``(C) assume responsibility for any employee 
                benefits which the service contract may require the 
                certified professional employer organization to 
                provide, without regard to the receipt or adequacy of 
                payment from the customer for such benefits,
                    ``(D) assume responsibility for recruiting, hiring, 
                and firing workers in addition to the customer's 
                responsibility for recruiting, hiring, and firing 
                workers,
                    ``(E) maintain employee records relating to such 
                individual, and
                    ``(F) agree to be treated as a certified 
                professional employer organization for purposes of 
                section 3511 with respect to such individual.
            ``(3) Work site coverage requirement.--The requirements of 
        this paragraph are met with respect to an individual if at 
        least 85 percent of the individuals performing services for the 
        customer at the work site where such individual performs 
        services are subject to 1 or more contracts with the certified 
        professional employer organization which meet the requirements 
        of paragraph (2) (but not taking into account those individuals 
        who are excluded employees within the meaning of section 
        414(q)(5)).
    ``(f) Public Disclosure.--The Secretary shall make available to the 
public the name and address of--
            ``(1) each person certified as a professional employer 
        organization under subsection (a), and
            ``(2) each person whose certification as a professional 
        employer organization is suspended or revoked under subsection 
        (d).
    ``(g) Determination of Employment Status.--Except to the extent 
necessary for purposes of section 3511, nothing in this section shall 
be construed to affect the determination of who is an employee or 
employer for purposes of this title.
    ``(h) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary or appropriate to carry out the purposes of this 
section.''.
    (c) Conforming Amendments.--
            (1) Section 3302 is amended by adding at the end the 
        following new subsection:
    ``(h) Treatment of Certified Professional Employer Organizations.--
If a certified professional employer organization (as defined in 
section 7705), or a customer of such organization, makes a contribution 
to the State's unemployment fund with respect to wages paid to a work 
site employee, such certified professional employer organization shall 
be eligible for the credits available under this section with respect 
to such contribution.''.
            (2) Section 3303(a) is amended--
                    (A) by striking the period at the end of paragraph 
                (3) and inserting ``; and'' and by inserting after 
                paragraph (3) the following new paragraph:
            ``(4) if the taxpayer is a certified professional employer 
        organization (as defined in section 7705) that is treated as 
        the employer under section 3511, such certified professional 
        employer organization is permitted to collect and remit, in 
        accordance with paragraphs (1), (2), and (3), contributions 
        during the taxable year to the State unemployment fund with 
        respect to a work site employee.'', and
                    (B) in the last sentence--
                            (i) by striking ``paragraphs (1), (2), and 
                        (3)'' and inserting ``paragraphs (1), (2), (3), 
                        and (4)'', and
                            (ii) by striking ``paragraph (1), (2), or 
                        (3)'' and inserting ``paragraph (1), (2), (3), 
                        or (4)''.
            (3) Section 6053(c) is amended by adding at the end the 
        following new paragraph:
            ``(8) Certified professional employer organizations.--For 
        purposes of any report required by this subsection, in the case 
        of a certified professional employer organization that is 
        treated under section 3511 as the employer of a work site 
        employee, the customer with respect to whom a work site 
        employee performs services shall be the employer for purposes 
        of reporting under this section and the certified professional 
        employer organization shall furnish to the customer and the 
        Secretary any information the Secretary prescribes as necessary 
        to complete such reporting no later than such time as the 
        Secretary shall prescribe.''.
            (4) Section 6652 is amended by adding at the end the 
        following new subsection:
    ``(n) Failure to Make Reports Required Under Sections 3511, 
6053(c)(8), and 7705.--In the case of a failure to make a report 
required under section 3511, 6053(c)(8), or 7705 which contains the 
information required by such section on the date prescribed therefor 
(determined with regard to any extension of time for filing), there 
shall be paid (on notice and demand by the Secretary and in the same 
manner as tax) by the person failing to make such report, an amount 
equal to $50 for each report with respect to which there was such a 
failure. In the case of any failure due to negligence or intentional 
disregard the preceding sentence shall be applied by substituting 
`$100' for `$50'.''.
    (d) Clerical Amendments.--
            (1) The table of sections for chapter 25 is amended by 
        adding at the end the following new item:

``Sec. 3511. Certified professional employer organizations.''.
            (2) The table of sections for chapter 79 is amended by 
        inserting after the item relating to section 7704 the following 
        new item:

``Sec. 7705. Certified professional employer organizations.''.
    (f) User Fees.--Section 7528(b) is amended by adding at the end the 
following new paragraph:
            ``(4) Certified professional employer organizations.--The 
        fee charged under the program in connection with the 
        certification by the Secretary of a professional employer 
        organization under section 7705 shall be an annual fee not to 
        exceed $1,000 per year.''.
    (g) Effective Dates.--
            (1) In general.--The amendments made by this section shall 
        apply with respect to wages for services performed on or after 
        January 1 of the first calendar year beginning more than 12 
        months after the date of the enactment of this Act.
            (2) Certification program.--The Secretary of the Treasury 
        shall establish the certification program described in section 
        7705(b) of the Internal Revenue Code of 1986, as added by 
        subsection (b), not later than 6 months before the effective 
        date determined under paragraph (1).
    (h) No Inference.--Nothing contained in this section or the 
amendments made by this section shall be construed to create any 
inference with respect to the determination of who is an employee or 
employer--
            (1) for Federal tax purposes (other than the purposes set 
        forth in the amendments made by this section), or
            (2) for purposes of any other provision of law.

SEC. 207. EXCLUSION OF DIVIDENDS FROM CONTROLLED FOREIGN CORPORATIONS 
              FROM THE DEFINITION OF PERSONAL HOLDING COMPANY INCOME 
              FOR PURPOSES OF THE PERSONAL HOLDING COMPANY RULES.

    (a) In General.--Section 543(a)(1) is amended--
            (1) by redesignating subparagraphs (C) and (D) as 
        subparagraphs (D) and (E), respectively, and
            (2) by inserting after subparagraph (B) the following:
                    ``(C) dividends received by a United States 
                shareholder (as defined in section 951(b)) from a 
                controlled foreign corporation (as defined in section 
                957(a)),''.
    (b) Effective Date.--The amendments made by this Act shall apply to 
taxable years ending on or after the date of the enactment of this Act.

SEC. 208. INFLATION ADJUSTMENT FOR CERTAIN CIVIL PENALTIES UNDER THE 
              INTERNAL REVENUE CODE OF 1986.

    (a) Failure to File Tax Return or Pay Tax.--Section 6651 is amended 
by adding at the end the following new subsection:
    ``(i) Adjustment for Inflation.--
            ``(1) In general.--In the case of any return required to be 
        filed in a calendar year beginning after 2014, the $135 dollar 
        amount under subsection (a) shall be increased by such dollar 
        amount multiplied by the cost-of-living adjustment determined 
        under section 1(f)(3) determined by substituting `calendar year 
        2013' for `calendar year 1992' in subparagraph (B) thereof.
            ``(2) Rounding.--If any amount adjusted under paragraph (1) 
        is not a multiple of $5, such amount shall be rounded to the 
        next lowest multiple of $5.''.
    (b) Failure to File Certain Information Returns, Registration 
Statements, etc.--
            (1) In general.--Section 6652(c) is amended by adding at 
        the end the following new paragraph:
            ``(6) Adjustment for inflation.--
                    ``(A) In general.--In the case of any failure 
                relating to a return required to be filed in a calendar 
                year beginning after 2014, each of the dollar amounts 
                under paragraphs (1), (2), and (3) shall be increased 
                by such dollar amount multiplied by the cost-of-living 
                adjustment determined under section 1(f)(3) determined 
                by substituting `calendar year 2013' for `calendar year 
                1992' in subparagraph (B) thereof.
                    ``(B) Rounding.--If any amount adjusted under 
                subparagraph (A)--
                            ``(i) is not less than $5,000 and is not a 
                        multiple of $500, such amount shall be rounded 
                        to the next lowest multiple of $500, and
                            ``(ii) is not described in clause (i) and 
                        is not a multiple of $5, such amount shall be 
                        rounded to the next lowest multiple of $5.''.
            (2) Conforming amendments.--
                    (A) The last sentence of section 6652(c)(1)(A) is 
                amended by striking ``the first sentence of this 
                subparagraph shall be applied by substituting `$100' 
                for `$20' and'' and inserting ``in applying the first 
                sentence of this subparagraph, the amount of the 
                penalty for each day during which a failure continues 
                shall be $100 in lieu of the amount otherwise 
                specified, and''.
                    (B) Section 6652(c)(2)(C)(ii) is amended by 
                striking ``the first sentence of paragraph (1)(A)'' and 
                all that follows and inserting ``in applying the first 
                sentence of paragraph (1)(A), the amount of the penalty 
                for each day during which a failure continues shall be 
                $100 in lieu of the amount otherwise specified, and in 
                lieu of applying the second sentence of paragraph 
                (1)(A), the maximum penalty under paragraph (1)(A) 
                shall not exceed $50,000, and''.
    (c) Other Assessable Penalties With Respect to the Preparation of 
Tax Returns for Other Persons.--Section 6695 is amended by adding at 
the end the following new subsection:
    ``(h) Adjustment for Inflation.--
            ``(1) In general.--In the case of any failure relating to a 
        return or claim for refund filed in a calendar year beginning 
        after 2014, each of the dollar amounts under subsections (a), 
        (b), (c), (d), (e), (f), and (g) shall be increased by such 
        dollar amount multiplied by the cost-of-living adjustment 
        determined under section 1(f)(3) determined by substituting 
        `calendar year 2013' for `calendar year 1992' in subparagraph 
        (B) thereof.
            ``(2) Rounding.--If any amount adjusted under subparagraph 
        (A)--
                    ``(A) is not less than $5,000 and is not a multiple 
                of $500, such amount shall be rounded to the next 
                lowest multiple of $500, and
                    ``(B) is not described in clause (i) and is not a 
                multiple of $5, such amount shall be rounded to the 
                next lowest multiple of $5.''.
    (d) Failure to File Partnership Return.--Section 6698 is amended by 
adding at the end the following new subsection:
    ``(e) Adjustment for Inflation.--
            ``(1) In general.--In the case of any return required to be 
        filed in a calendar year beginning after 2014, the $195 dollar 
        amount under subsection (b)(1) shall be increased by such 
        dollar amount multiplied by the cost-of-living adjustment 
        determined under section 1(f)(3) determined by substituting 
        `calendar year 2013' for `calendar year 1992' in subparagraph 
        (B) thereof.
            ``(2) Rounding.--If any amount adjusted under paragraph (1) 
        is not a multiple of $5, such amount shall be rounded to the 
        next lowest multiple of $5.''.
    (e) Failure to File S Corporation Return.--Section 6699 is amended 
by adding at the end the following new subsection:
    ``(e) Adjustment for Inflation.--
            ``(1) In general.--In the case of any return required to be 
        filed in a calendar year beginning after 2014, the $195 dollar 
        amount under subsection (b)(1) shall be increased by such 
        dollar amount multiplied by the cost-of-living adjustment 
        determined under section 1(f)(3) determined by substituting 
        `calendar year 2013' for `calendar year 1992' in subparagraph 
        (B) thereof.
            ``(2) Rounding.--If any amount adjusted under paragraph (1) 
        is not a multiple of $5, such amount shall be rounded to the 
        next lowest multiple of $5.''.
    (f) Failure to File Correct Information Returns.--Section 
6721(f)(1) is amended by striking ``For each fifth calendar year 
beginning after 2012'' and inserting ``In the case of any failure 
relating to a return required to be filed in a calendar year beginning 
after 2014''.
    (g) Failure to Furnish Correct Payee Statements.--Section 
6722(f)(1) is amended by striking ``For each fifth calendar year 
beginning after 2012'' and inserting ``In the case of any failure 
relating to a statement required to be furnished in a calendar year 
beginning after 2014''.
    (h) Effective Date.--The amendments made by this section shall 
apply to returns required to be filed after December 31, 2014.

SEC. 209. INCREASE IN CONTINUOUS LEVY.

    (a) In General.--Paragraph (3) of section 6331(h) is amended by 
striking the period at the end and inserting ``and by substituting `30 
percent' for `15 percent' in the case of any specified payment due to a 
Medicare provider or supplier under title XVIII of the Social Security 
Act.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to payments made after 180 days after the date of the enactment of this 
Act.

            Passed the House of Representatives December 3, 2014.

            Attest:

                                                                 Clerk.
113th CONGRESS

  2d Session

                               H. R. 5771

_______________________________________________________________________

                                 AN ACT

 To amend the Internal Revenue Code of 1986 to extend certain expiring 
   provisions and make technical corrections, to amend the Internal 
Revenue Code of 1986 to provide for the tax treatment of ABLE accounts 
 established under State programs for the care of family members with 
                 disabilities, and for other purposes.