[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5771 Enrolled Bill (ENR)]

        H.R.5771

                     One Hundred Thirteenth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

           Begun and held at the City of Washington on Friday,
           the third day of January, two thousand and fourteen


                                 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 ``Stephen Beck, 
Jr., Achieving a Better Life Experience Act of 2014'' or the ``Stephen 
Beck, Jr., 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.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.