[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.