[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1859 Placed on Calendar Senate (PCS)]

                                                       Calendar No. 287
113th CONGRESS
  1st Session
                                S. 1859

 To amend the Internal Revenue Code of 1986 to extend certain expiring 
                  provisions, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 19, 2013

                 Mr. Reid introduced the following bill

            December 20 (legislative day, December 19), 2013

                           Read the first time

                           December 20, 2013

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to extend certain expiring 
                  provisions, and for other purposes.

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

SECTION 1. SHORT TITLE, ETC.

    (a) Short Title.--This Act may be cited as the ``Tax Extenders Act 
of 2013''.
    (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:

Sec. 1. Short title, etc.
                   TITLE I--INDIVIDUAL TAX EXTENDERS

       Subtitle A--Extensions Relating to Certain Health Coverage

Sec. 101. Health care tax credit.
Sec. 102. TAA pre-certification rule for purposes of determining 
                            whether there is a 63-day lapse in 
                            creditable coverage.
Sec. 103. Extension of COBRA benefits for certain TAA-eligible 
                            individuals and PBGC recipients.
                     Subtitle B--General Extensions

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

Sec. 201. Extension of research credit.
Sec. 202. Extension of temporary minimum low-income tax credit rate for 
                            non-federally subsidized new buildings.
Sec. 203. Extension of housing allowance exclusion for determining area 
                            median gross income for qualified 
                            residential rental project exempt facility 
                            bonds.
Sec. 204. Extension of Indian employment tax credit.
Sec. 205. Extension of new markets tax credit.
Sec. 206. Extension of railroad track maintenance credit.
Sec. 207. Extension of mine rescue team training credit.
Sec. 208. Extension of employer wage credit for employees who are 
                            active duty members of the uniformed 
                            services.
Sec. 209. Extension of work opportunity tax credit.
Sec. 210. Extension of qualified zone academy bonds.
Sec. 211. Extension of classification of certain race horses as 3-year 
                            property.
Sec. 212. Extension of 15-year straight-line cost recovery for 
                            qualified leasehold improvements, qualified 
                            restaurant buildings and improvements, and 
                            qualified retail improvements.
Sec. 213. Extension of 7-year recovery period for motorsports 
                            entertainment complexes.
Sec. 214. Extension of accelerated depreciation for business property 
                            on an Indian reservation.
Sec. 215. Extension of bonus depreciation.
Sec. 216. Extension of enhanced charitable deduction for contributions 
                            of food inventory.
Sec. 217. Extension of increased expensing limitations and treatment of 
                            certain real property as section 179 
                            property.
Sec. 218. Extension of election to expense mine safety equipment.
Sec. 219. Extension of special expensing rules for certain film and 
                            television productions.
Sec. 220. Extension of deduction allowable with respect to income 
                            attributable to domestic production 
                            activities in Puerto Rico.
Sec. 221. Extension of modification of tax treatment of certain 
                            payments to controlling exempt 
                            organizations.
Sec. 222. Extension of treatment of certain dividends of regulated 
                            investment companies.
Sec. 223. Extension of RIC qualified investment entity treatment under 
                            FIRPTA.
Sec. 224. Extension of subpart F exception for active financing income.
Sec. 225. Extension of look-thru treatment of payments between related 
                            controlled foreign corporations under 
                            foreign personal holding company rules.
Sec. 226. Extension of temporary exclusion of 100 percent of gain on 
                            certain small business stock.
Sec. 227. Extension of basis adjustment to stock of S corporations 
                            making charitable contributions of 
                            property.
Sec. 228. Extension of reduction in S-corporation recognition period 
                            for built-in gains tax.
Sec. 229. Extension of empowerment zone tax incentives.
Sec. 230. Extension of temporary increase in limit on cover over of rum 
                            excise taxes to Puerto Rico and the Virgin 
                            Islands.
Sec. 231. Extension of American Samoa economic development credit.
                    TITLE III--ENERGY TAX EXTENDERS

Sec. 301. Extension of credit for energy-efficient existing homes.
Sec. 302. Extension of credit for alternative fuel vehicle refueling 
                            property.
Sec. 303. Extension of credit for 2- or 3-wheeled plug-in electric 
                            vehicles.
Sec. 304. Extension of second generation biofuel producer credit.
Sec. 305. Extension of incentives for biodiesel and renewable diesel.
Sec. 306. Extension of production credit for Indian coal facilities 
                            placed in service before 2009.
Sec. 307. Extension of credits with respect to facilities producing 
                            energy from certain renewable resources.
Sec. 308. Extension of credit for energy-efficient new homes.
Sec. 309. Extension of credits for energy-efficient appliances.
Sec. 310. Extension of special allowance for second generation biofuel 
                            plant property.
Sec. 311. Extension of placed in service date for election to expense 
                            certain refineries.
Sec. 312. Extension of energy efficient commercial buildings deduction.
Sec. 313. Extension of special rule for sales or dispositions to 
                            implement FERC or State electric 
                            restructuring policy for qualified electric 
                            utilities.
Sec. 314. Extension of alternative fuels excise tax credits.
Sec. 315. Extension of alternative fuels excise tax credits relating to 
                            liquefied hydrogen.

                   TITLE I--INDIVIDUAL TAX EXTENDERS

       Subtitle A--Extensions Relating to Certain Health Coverage

SEC. 101. HEALTH CARE TAX CREDIT.

    (a) In General.--Subparagraph (B) of section 35(b)(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 coverage months beginning after December 31, 2013.

SEC. 102. TAA PRE-CERTIFICATION RULE FOR PURPOSES OF DETERMINING 
              WHETHER THERE IS A 63-DAY LAPSE IN CREDITABLE COVERAGE.

    (a) In General.--The following provisions are each amended by 
striking ``January 1, 2014'' and inserting ``January 1, 2015'':
            (1) Section 9801(c)(2)(D).
            (2) Section 701(c)(2)(C) of the Employee Retirement Income 
        Security Act of 1974.
            (3) Section 2701(c)(2)(C) of the Public Health Service Act 
        (as in effect for plan years beginning before January 1, 2014).
            (4) Section 2704(c)(2)(C) of the Public Health Service Act 
        (as in effect for plan years beginning on or after January 1, 
        2014).
    (b) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2013.

SEC. 103. EXTENSION OF COBRA BENEFITS FOR CERTAIN TAA-ELIGIBLE 
              INDIVIDUALS AND PBGC RECIPIENTS.

    (a) In General.--The following provisions are each amended by 
striking ``January 1, 2014'' and inserting ``January 1, 2015'':
            (1) Section 4980B(f)(2)(B)(i)(V).
            (2) Section 4980B(f)(2)(B)(i)(VI).
            (3) Section 602(2)(A)(v) of the Employee Retirement Income 
        Security Act of 1974.
            (4) Section 602(2)(A)(vi) of such Act.
            (5) Section 2202(2)(A)(iv) of the Public Health Service 
        Act.
    (b) Effective Date.--The amendments made by this section shall 
apply to periods of coverage which would (without regard to the 
amendments made by this section) end on or after December 31, 2013.

                     Subtitle B--General Extensions

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

    (a) In General.--Subparagraph (D) of section 62(a)(2) is amended by 
striking ``or 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. 112. EXTENSION OF EXCLUSION FROM GROSS INCOME OF DISCHARGE OF 
              QUALIFIED PRINCIPAL RESIDENCE INDEBTEDNESS.

    (a) In General.--Subparagraph (E) of section 108(a)(1) is amended 
by striking ``January 1, 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. 113. EXTENSION OF PARITY FOR EXCLUSION FROM INCOME FOR EMPLOYER-
              PROVIDED MASS TRANSIT AND PARKING BENEFITS.

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

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

    (a) In General.--Subclause (I) of section 163(h)(3)(E)(iv) is 
amended by striking ``December 31, 2013'' and inserting ``December 31, 
2014''.
    (b) Effective Date.--The amendments made by this section shall 
apply to amounts paid or accrued after December 31, 2013.

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

    (a) In General.--Subparagraph (I) of section 164(b)(5) is amended 
by striking ``January 1, 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. 116. EXTENSION OF SPECIAL RULE FOR CONTRIBUTIONS OF CAPITAL GAIN 
              REAL PROPERTY MADE FOR CONSERVATION PURPOSES.

    (a) In General.--Clause (vi) of section 170(b)(1)(E) is amended by 
striking ``December 31, 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. 117. EXTENSION OF ABOVE-THE-LINE DEDUCTION FOR QUALIFIED TUITION 
              AND RELATED EXPENSES.

    (a) In General.--Subsection (e) of section 222 is amended by 
striking ``December 31, 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 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.

                    TITLE II--BUSINESS TAX EXTENDERS

SEC. 201. EXTENSION OF RESEARCH CREDIT.

    (a) In General.--Subparagraph (B) of section 41(h)(1) is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2014''.
    (b) Conforming Amendment.--Subparagraph (D) of section 45C(b)(1) is 
amended by striking ``December 31, 2013'' and inserting ``December 31, 
2014''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after December 31, 2013.

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

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

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

    (a) In General.--Subsection (b) of section 3005 of the Housing 
Assistance Tax Act of 2008 is amended by striking ``January 1, 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. 204. 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. 205. 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. 206. 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. 207. 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. 208. EXTENSION OF EMPLOYER WAGE CREDIT FOR EMPLOYEES WHO ARE 
              ACTIVE DUTY MEMBERS OF THE UNIFORMED SERVICES.

    (a) In General.--Subsection (f) of section 45P is amended by 
striking ``December 31, 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. 209. EXTENSION OF WORK OPPORTUNITY TAX CREDIT.

    (a) In General.--Subparagraph (B) of section 51(c)(4) is amended by 
striking ``December 31, 2013'' and inserting ``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. 210. EXTENSION OF QUALIFIED ZONE ACADEMY BONDS.

    (a) Extension.--
            (1) In general.--Paragraph (1) of section 54E(c) is amended 
        by striking ``and 2013'' and inserting ``2013, and 2014''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to obligations issued after December 31, 2013.
    (b) Technical Correction and Conforming Amendment.--
            (1) In general.--Clause (iii) of section 6431(f)(3)(A) is 
        amended--
                    (A) by striking ``2011'' and inserting ``years 
                after 2010'', and
                    (B) by striking ``of such allocation'' and 
                inserting ``of any such allocation''.
            (2) Effective date.--The amendments made by this subsection 
        shall take effect as if included in section 310 of the American 
        Taxpayer Relief Act of 2012.

SEC. 211. 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. 212. 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. 213. 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. 214. 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. 215. 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 ``2014'' and inserting 
        ``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, this paragraph shall be 
                        applied without regard to--
                                    ``(I) the limitation described in 
                                subparagraph (B)(i) thereof, and
                                    ``(II) the business credit increase 
                                amount under subparagraph (E)(iii) 
                                thereof.
                            ``(ii) Taxpayers previously electing 
                        acceleration.--In the case of a taxpayer who 
                        made the election under subparagraph (A) for 
                        its first taxable year ending after March 31, 
                        2008, a taxpayer who made the election under 
                        subparagraph (H)(ii) for its first taxable year 
                        ending after December 31, 2008, a taxpayer who 
                        made the election under subparagraph (I)(iii) 
                        for its first taxable year ending after 
                        December 31, 2010, or a taxpayer who made the 
                        election under subparagraph (J)(iii) for its 
                        first taxable year ending after December 31, 
                        2012--
                                    ``(I) the taxpayer may elect not to 
                                have this paragraph apply to round 4 
                                extension property, but
                                    ``(II) if the taxpayer does not 
                                make the election under subclause (I), 
                                in applying this paragraph to the 
                                taxpayer the bonus depreciation amount, 
                                maximum amount, and maximum increase 
                                amount shall be computed and applied to 
                                eligible qualified property which is 
                                round 4 extension property.
                        The amounts described in subclause (II) shall 
                        be computed separately from any amounts 
                        computed with respect to eligible qualified 
                        property which is not round 4 extension 
                        property.
                            ``(iii) Taxpayers not previously electing 
                        acceleration.--In the case of a taxpayer who 
                        neither made the election under subparagraph 
                        (A) for its first taxable year ending after 
                        March 31, 2008, nor made the election under 
                        subparagraph (H)(ii) for its first taxable year 
                        ending after December 31, 2008, nor made the 
                        election under subparagraph (I)(iii) for its 
                        first taxable year ending after December 31, 
                        2010, nor made the election under subparagraph 
                        (J)(iii) for its first taxable year ending 
                        after December 31, 2012--
                                    ``(I) the taxpayer may elect to 
                                have this paragraph apply to its first 
                                taxable year ending after December 31, 
                                2013, and each subsequent taxable year, 
                                and
                                    ``(II) if the taxpayer makes the 
                                election under subclause (I), this 
                                paragraph shall only apply to eligible 
                                qualified property which is round 4 
                                extension property.
                            ``(iv) 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 215(a) of the Tax 
                        Extenders Act of 2013 (and the application of 
                        such extension to this paragraph pursuant to 
                        the amendment made by section 215(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. 216. 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. 217. 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 ``or 2013'' in subparagraph (B) and 
                inserting ``2013, or 2014'', and
                    (B) by striking ``2013'' in subparagraph (C) and 
                inserting ``2014''.
            (2) Reduction in limitation.--Section 179(b)(2) is 
        amended--
                    (A) by striking ``or 2013'' in subparagraph (B) and 
                inserting ``2013, or 2014'', 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 
        ``or 2013'' and inserting ``2013, or 2014''.
            (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. 218. 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. 219. 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 Date.--The amendment made by this section shall apply 
to productions commencing after December 31, 2013.

SEC. 220. 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. 221. 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. 222. 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. 223. 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.--The amendment made by this section shall take 
effect on January 1, 2014.

SEC. 224. 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. 225. 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. 226. 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. 227. 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. 228. 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. 229. 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 Date.--The amendment made by this section shall apply 
to periods after December 31, 2013.

SEC. 230. 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. 231. 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.

                    TITLE III--ENERGY TAX EXTENDERS

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

    (a) In General.--Paragraph (2) of section 25C(g) is amended by 
striking ``December 31, 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. 302. 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.

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

    (a) In General.--Subparagraph (E) of section 30D(g)(3) is amended 
by striking ``January 1, 2014'' and inserting ``January 1, 2015''.
    (b) Effective Date.--The amendments made by this section shall 
apply to vehicles acquired after December 31, 2013.

SEC. 304. 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 subsection shall 
apply to fuel sold or used after December 31, 2013.

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

    (a) Credits for Biodiesel and Renewable Diesel Used as Fuel.--
Subsection (g) of section 40A is amended by striking ``December 31, 
2013'' and inserting ``December 31, 2014''.
    (b) Excise Tax Credits and Outlay Payments for Biodiesel and 
Renewable Diesel Fuel Mixtures.--
            (1) Paragraph (6) of section 6426(c) is amended by striking 
        ``December 31, 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''.
    (c) Effective Date.--The amendments made by this section shall 
apply to fuel sold or used after December 31, 2013.

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

    (a) In General.--Subparagraph (A) of section 45(e)(10) is amended 
by striking ``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. 307. 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. 308. 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 amendments made by this section shall 
apply to homes acquired after December 31, 2013.

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

    (a) In General.--Subsection (b) of section 45M is amended by 
striking ``or 2013'' each place it appears in paragraphs (1)(E), 
(2)(F), and (3)(F) and inserting ``2013, or 2014''.
    (b) Effective Date.--The amendments made by this section shall 
apply to appliances produced after December 31, 2013.

SEC. 310. 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. 311. EXTENSION OF PLACED IN SERVICE DATE FOR ELECTION TO EXPENSE 
              CERTAIN REFINERIES.

    (a) In General.--Subparagraph (B) of section 179C(c)(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 property placed in service after December 31, 2013.

SEC. 312. 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. 313. 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. 314. EXTENSION OF ALTERNATIVE FUELS EXCISE TAX CREDITS.

    (a) In General.--Sections 6426(d)(5) and 6426(e)(3) are each 
amended by striking ``December 31, 2013'' and inserting ``December 31, 
2014''.
    (b) 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) Effective Date.--The amendments made by this section shall 
apply to fuel sold or used after December 31, 2013.

SEC. 315. EXTENSION OF ALTERNATIVE FUELS EXCISE TAX CREDITS RELATING TO 
              LIQUEFIED HYDROGEN.

    (a) In General.--Sections 6426(d)(5) and 6426(e)(3), as amended by 
this Act, are each amended by striking ``2014 (September 30, 2014 in 
the case of any sale or use involving liquefied hydrogen)'' and 
inserting ``2014''.
    (b) Outlay Payments for Alternative Fuels.--Paragraph (6) of 
section 6427(e) is amended--
            (1) by striking ``except as provided in subparagraph (D), 
        any'' in subparagraph (C), as amended by this Act, and 
        inserting ``any'', and
            (2) by striking subparagraph (D) and redesignating 
        subparagraph (E) as subparagraph (D).
    (c) Effective Date.--The amendments made by this section shall 
apply to fuels sold or used after September 30, 2014.
                                                       Calendar No. 287

113th CONGRESS

  1st Session

                                S. 1859

_______________________________________________________________________

                                 A BILL

 To amend the Internal Revenue Code of 1986 to extend certain expiring 
                  provisions, and for other purposes.

_______________________________________________________________________

                           December 20, 2013

            Read the second time and placed on the calendar