[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1946 Placed on Calendar Senate (PCS)]

                                                       Calendar No. 198
114th CONGRESS
  1st Session
                                S. 1946

                          [Report No. 114-118]

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 5, 2015

   Mr. Hatch, from the Committee on Finance, reported the following 
     original bill; which was read twice and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to extend certain expiring 
                  provisions, 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 Relief 
Extension Act of 2015''.
    (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.
Sec. 2. Sense of the Senate.
                TITLE I--PROVISIONS THAT EXPIRED IN 2014

                  Subtitle A--Individual Tax Extenders

Sec. 101. Extension and modification of deduction for certain expenses 
                            of elementary and secondary school 
                            teachers.
Sec. 102. Extension and modification of exclusion from gross income of 
                            discharge of qualified principal residence 
                            indebtedness.
Sec. 103. Extension of parity and modification of exclusion from income 
                            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 and modification of research credit.
Sec. 112. Extension and modification 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 and modification of new markets tax credit.
Sec. 116. Extension and modification of railroad track maintenance 
                            credit.
Sec. 117. Extension of mine rescue team training credit.
Sec. 118. Extension and modification of employer wage credit for 
                            employees who are active duty members of 
                            the uniformed services.
Sec. 119. Extension and modification of work opportunity tax credit.
Sec. 120. Extension and modification 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 and modification 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 and modification 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; special expensing 
                            for live theatrical 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 and modification 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 and modification of credit for nonbusiness energy 
                            property.
Sec. 152. Extension of credit for new qualified fuel cell motor 
                            vehicles.
Sec. 153. Extension of credit for alternative fuel vehicle refueling 
                            property.
Sec. 154. Extension of second generation biofuel producer credit.
Sec. 155. Extension and reform of biodiesel tax incentives.
Sec. 156. Extension of production credit for Indian coal facilities 
                            placed in service before 2009.
Sec. 157. Extension of credits with respect to facilities producing 
                            energy from certain renewable resources.
Sec. 158. Extension of credit for energy-efficient new homes.
Sec. 159. Extension of special allowance for second generation biofuel 
                            plant property.
Sec. 160. Extension and modification of energy efficient commercial 
                            buildings deduction.
Sec. 161. Extension of special rule for sales or dispositions to 
                            implement FERC or State electric 
                            restructuring policy for qualified electric 
                            utilities.
Sec. 162. Extension of excise tax credits relating to alternative 
                            fuels.
                TITLE II--PROVISION THAT EXPIRED IN 2013

Sec. 201. Extension of credit for 2-wheeled plug-in electric vehicles.
                     TITLE III--REVENUE PROVISIONS

Sec. 301. Exclusion from gross income of certain clean coal power 
                            grants to non-corporate taxpayers.
Sec. 302. Treatment of certain persons as employers with respect to 
                            motion picture projects.
Sec. 303. Equalization of excise tax and credits with respect to 
                            liquefied petroleum gas and liquefied 
                            natural gas.
Sec. 304. Additional information on returns relating to mortgage 
                            interest.
                      TITLE IV--BUDGETARY EFFECTS

Sec. 401. Budgetary effects.

SEC. 2. SENSE OF THE SENATE.

    It is the sense of the Senate that--
            (1) Congress should pursue a process of comprehensive tax 
        reform;
            (2) Congress should endeavor, as part of such tax reform 
        process, to eliminate temporary provisions from the Internal 
        Revenue Code of 1986 by making permanent those provisions that 
        merit permanency and allowing others to expire; and
            (3) a major focus of such tax reform process should be 
        fostering economic growth and lowering tax rates by broadening 
        the tax base.

                TITLE I--PROVISIONS THAT EXPIRED IN 2014

                  Subtitle A--Individual Tax Extenders

SEC. 101. EXTENSION AND MODIFICATION 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 2014'' and inserting ``2014, 2015, or 2016''.
    (b) Adjustment for Inflation.--Subparagraph (D) of section 
62(a)(2), as amended by subsection (a), is amended--
            (1) by striking ``teachers.--In the case of'' and inserting 
        ``teachers.--
                            ``(i) In general.--In the case of'', and
            (2) by adding at the end the following new clause:
                            ``(ii) Adjustment for inflation.--In the 
                        case of any taxable year beginning after 2014, 
                        the $250 amount in clause (i) shall be 
                        increased by an amount equal to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                1(f)(3) for the calendar year in which 
                                the taxable year begins, by 
                                substituting `calendar year 2013' for 
                                `calendar year 1992' in subparagraph 
                                (B) thereof.
                        If any amount as increased under the preceding 
                        sentence is not a multiple of $25, such amount 
                        shall be rounded to the nearest multiple of 
                        $25.''.
    (c) Inclusion of Professional Development Expenses.--Clause (i) of 
section 62(a)(2)(D), as amended by subsections (a) and (b), is amended 
by striking the period at the end and inserting ``, and in connection 
with professional development activities of such educator.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2014.

SEC. 102. EXTENSION AND MODIFICATION OF EXCLUSION FROM GROSS INCOME OF 
              DISCHARGE OF QUALIFIED PRINCIPAL RESIDENCE INDEBTEDNESS.

    (a) Extension.--Subparagraph (E) of section 108(a)(1) is amended by 
striking ``January 1, 2015'' and inserting ``January 1, 2017''.
    (b) Modification.--Subparagraph (E) of section 108(a)(1), as 
amended by subsection (a), is amended by striking ``discharged before'' 
and all that follows and inserting ``discharged--
                            ``(i) before January 1, 2017, or
                            ``(ii) subject to an arrangement that is 
                        entered into and evidenced in writing before 
                        January 1, 2017.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to discharges of indebtedness after December 31, 2014.

SEC. 103. EXTENSION OF PARITY AND MODIFICATION OF EXCLUSION FROM INCOME 
              FOR EMPLOYER-PROVIDED MASS TRANSIT AND PARKING BENEFITS.

    (a) Extension.--
            (1) In general.--Paragraph (2) of section 132(f) is amended 
        by striking ``January 1, 2015'' and inserting ``January 1, 
        2017''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to months after December 31, 2014.
    (b) Use of a Bike Share Program as a Qualified Transportation 
Fringe.--
            (1) In general.--Section 132(f)(5)(F) is amended--
                    (A) in clause (i), by striking ``repair, and 
                storage, if such bicycle'' and inserting ``repair, and 
                storage (or use of a bike sharing program, in the case 
                of taxable years beginning before January 1, 2017), if 
                such bicycle or bike sharing program'', and
                    (B) in clause (iii)(I), by inserting ``or bike 
                sharing program'' after ``bicycle''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to months after December 31, 2014.

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, 2014'' and inserting ``December 31, 
2016''.
    (b) Effective Date.--The amendment made by this section shall apply 
to amounts paid or accrued after December 31, 2014.

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, 2015'' and inserting ``January 1, 2017''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2014.

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, 2014'' and inserting ``December 31, 2016''.
    (b) Contributions by Certain Corporate Farmers and Ranchers.--
Clause (iii) of section 170(b)(2)(B) is amended by striking ``December 
31, 2014'' and inserting ``December 31, 2016''.
    (c) Effective Date.--The amendments made by this section shall 
apply to contributions made in taxable years beginning after December 
31, 2014.

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, 2014'' and inserting ``December 31, 2016''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2014.

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, 2014'' and inserting ``December 31, 2016''.
    (b) Effective Date.--The amendment made by this section shall apply 
to distributions made in taxable years beginning after December 31, 
2014.

                   Subtitle B--Business Tax Extenders

SEC. 111. EXTENSION AND MODIFICATION OF RESEARCH CREDIT.

    (a) Extension.--
            (1) In general.--Paragraph (1) of section 41(h) is amended 
        by striking ``December 31, 2014'' and inserting ``December 31, 
        2016''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to amounts paid or incurred after December 31, 
        2014.
    (b) Treatment of Research Credit for Certain Startup Companies.--
            (1) In general.--Section 41 is amended by adding at the end 
        the following new subsection:
    ``(i) Treatment of Credit for Qualified Small Businesses.--
            ``(1) In general.--At the election of a qualified small 
        business for any taxable year, section 3111(f) shall apply to 
        the payroll tax credit portion of the credit otherwise 
        determined under subsection (a) for the taxable year and such 
        portion shall not be treated (other than for purposes of 
        section 280C) as a credit determined under subsection (a).
            ``(2) Payroll tax credit portion.--For purposes of this 
        subsection, the payroll tax credit portion of the credit 
        determined under subsection (a) with respect to any qualified 
        small business for any taxable year is the least of--
                    ``(A) the amount specified in the election made 
                under this subsection,
                    ``(B) the credit determined under subsection (a) 
                for the taxable year (determined before the application 
                of this subsection), or
                    ``(C) in the case of a qualified small business 
                other than a partnership or S corporation, the amount 
                of the business credit carryforward under section 39 
                carried from the taxable year (determined before the 
                application of this subsection to the taxable year).
            ``(3) Qualified small business.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `qualified small 
                business' means, with respect to any taxable year--
                            ``(i) a corporation or partnership, if--
                                    ``(I) the gross receipts (as 
                                determined under the rules of section 
                                448(c)(3), without regard to 
                                subparagraph (A) thereof) of such 
                                entity for the taxable year is less 
                                than $5,000,000, and
                                    ``(II) such entity did not have 
                                gross receipts (as so determined) for 
                                any taxable year preceding the 5-
                                taxable-year period ending with such 
                                taxable year, and
                            ``(ii) any person (other than a corporation 
                        or partnership) who meets the requirements of 
                        subclauses (I) and (II) of clause (i), 
                        determined--
                                    ``(I) by substituting `person' for 
                                `entity' each place it appears, and
                                    ``(II) by only taking into account 
                                the aggregate gross receipts received 
                                by such person in carrying on all 
                                trades or businesses of such person.
                    ``(B) Limitation.--Such term shall not include an 
                organization which is exempt from taxation under 
                section 501.
            ``(4) Election.--
                    ``(A) In general.--Any election under this 
                subsection for any taxable year--
                            ``(i) shall specify the amount of the 
                        credit to which such election applies,
                            ``(ii) shall be made on or before the due 
                        date (including extensions) of--
                                    ``(I) in the case of a qualified 
                                small business which is a partnership, 
                                the return required to be filed under 
                                section 6031,
                                    ``(II) in the case of a qualified 
                                small business which is an S 
                                corporation, the return required to be 
                                filed under section 6037, and
                                    ``(III) in the case of any other 
                                qualified small business, the return of 
                                tax for the taxable year, and
                            ``(iii) may be revoked only with the 
                        consent of the Secretary.
                    ``(B) Limitations.--
                            ``(i) Amount.--The amount specified in any 
                        election made under this subsection shall not 
                        exceed $250,000.
                            ``(ii) Number of taxable years.--A person 
                        may not make an election under this subsection 
                        if such person (or any other person treated as 
                        a single taxpayer with such person under 
                        paragraph (5)(A)) has made an election under 
                        this subsection for 5 or more preceding taxable 
                        years.
                    ``(C) Special rule for partnerships and s 
                corporations.--In the case of a qualified small 
                business which is a partnership or S corporation, the 
                election made under this subsection shall be made at 
                the entity level.
            ``(5) Aggregation rules.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), all persons or entities treated as a 
                single taxpayer under subsection (f)(1) shall be 
                treated as a single taxpayer for purposes of this 
                subsection.
                    ``(B) Special rules.--For purposes of this 
                subsection and section 3111(f)--
                            ``(i) each of the persons treated as a 
                        single taxpayer under subparagraph (A) may 
                        separately make the election under paragraph 
                        (1) for any taxable year, and
                            ``(ii) the $250,000 amount under paragraph 
                        (4)(B)(i) shall be allocated among all persons 
                        treated as a single taxpayer under subparagraph 
                        (A) in the same manner as under subparagraph 
                        (A)(ii) or (B)(ii) of subsection (f)(1), 
                        whichever is applicable.
            ``(6) Regulations.--The Secretary shall prescribe such 
        regulations as may be necessary to carry out the purposes of 
        this subsection, including--
                    ``(A) regulations to prevent the avoidance of the 
                purposes of the limitations and aggregation rules under 
                this subsection through the use of successor companies 
                or other means,
                    ``(B) regulations to minimize compliance and 
                record-keeping burdens under this subsection, and
                    ``(C) regulations for recapturing the benefit of 
                credits determined under section 3111(f) in cases where 
                there is a subsequent adjustment to the payroll tax 
                credit portion of the credit determined under 
                subsection (a), including requiring amended income tax 
                returns in the cases where there is such an 
                adjustment.''.
            (2) Credit allowed against fica taxes.--Section 3111 is 
        amended by adding at the end the following new subsection:
    ``(f) Credit for Research Expenditures of Qualified Small 
Businesses.--
            ``(1) In general.--In the case of a taxpayer who has made 
        an election under section 41(i) for a taxable year, there shall 
        be allowed as a credit against the tax imposed by subsection 
        (a) for the first calendar quarter which begins after the date 
        on which the taxpayer files the return specified in section 
        41(i)(4)(A)(ii) an amount equal to the payroll tax credit 
        portion determined under section 41(i)(2).
            ``(2) Limitation.--The credit allowed by paragraph (1) 
        shall not exceed the tax imposed by subsection (a) for any 
        calendar quarter on the wages paid with respect to the 
        employment of all individuals in the employ of the employer.
            ``(3) Carryover of unused credit.--If the amount of the 
        credit under paragraph (1) exceeds the limitation of paragraph 
        (2) for any calendar quarter, such excess shall be carried to 
        the succeeding calendar quarter and allowed as a credit under 
        paragraph (1) for such quarter.
            ``(4) Deduction allowed for credited amounts.--The credit 
        allowed under paragraph (1) shall not be taken into account for 
        purposes of determining the amount of any deduction allowed 
        under chapter 1 for taxes imposed under subsection (a).''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to credits determined for taxable years beginning 
        after December 31, 2014.
    (c) Credit Allowed Against Alternative Minimum Tax.--
            (1) In general.--Subparagraph (B) of section 38(c)(4) is 
        amended--
                    (A) by redesignating clauses (ii), (iii), (iv), 
                (v), (vi), (vii), (viii), and (ix) as clauses (iii), 
                (iv), (v), (vi), (vii), (viii), (ix), and (x), 
                respectively, and
                    (B) by inserting after clause (i) the following new 
                clause:
                            ``(ii) the credit determined under section 
                        41 with respect to an eligible small business 
                        (as defined in paragraph (5)(C), after 
                        application of rules similar to the rules of 
                        paragraph (5)(D)),''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to credits determined for taxable years beginning 
        after December 31, 2014, and to carrybacks of such credits.

SEC. 112. EXTENSION AND MODIFICATION 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, 2015'' and inserting ``January 1, 2017''.
    (b) Temporary Minimum Credit Rate for Non-federally Subsidized 
Existing Buildings.--Subsection (b) of section 42 is amended by 
redesignating paragraph (3) as paragraph (4) and by inserting after 
paragraph (2) the following new paragraph:
            ``(3) Temporary minimum credit rate for non-federally 
        subsidized existing buildings.--In the case of any existing 
        building--
                    ``(A) which is placed in service by the taxpayer 
                after the date of the enactment of the Tax Relief 
                Extension Act of 2015 with respect to housing credit 
                dollar amount allocations made before January 1, 2017, 
                and
                    ``(B) which is not federally subsidized for the 
                taxable year,
        the applicable percentage shall not be less than 4 percent.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2015.

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, 2015'' 
each place it appears and inserting ``January 1, 2017''.
    (b) Effective Date.--The amendments 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, 2014'' and inserting ``December 31, 2016''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2014.

SEC. 115. EXTENSION AND MODIFICATION OF NEW MARKETS TAX CREDIT.

    (a) In General.--Paragraph (1) of section 45D(f) is amended by 
striking the period at the end of subparagraph (G) and inserting ``, 
and'' and by adding at the end the following new subparagraph:
                    ``(H) $3,940,000,000 for 2015 and 2016.''.
    (b) Carryover of Unused Limitation.--Paragraph (3) of section 
45D(f) is amended by striking ``2019'' and inserting ``2021''.
    (c) Effective Date.--The amendments made by this section shall 
apply to calendar years beginning after December 31, 2014.

SEC. 116. EXTENSION AND MODIFICATION OF RAILROAD TRACK MAINTENANCE 
              CREDIT.

    (a) In General.--Subsection (f) of section 45G is amended by 
striking ``January 1, 2015'' and inserting ``January 1, 2017''.
    (b) Expenditures.--Subsection (d) of section 45G is amended by 
striking ``January 1, 2005,'' and inserting ``January 1, 2015 (January 
1, 2005, in the case of expenditures in taxable years beginning after 
December 31, 2004, and before January 1, 2015)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to expenditures paid or incurred in taxable years beginning after 
December 31, 2014.

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

    (a) In General.--Subsection (e) of section 45N is amended by 
striking ``December 31, 2014'' and inserting ``December 31, 2016''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2014.

SEC. 118. EXTENSION AND MODIFICATION 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, 2014'' and inserting ``December 31, 2016''.
    (b) Applicability to All Employers.--
            (1) In general.--Subsection (a) of section 45P is amended 
        by striking ``, in the case of an eligible small business 
        employer''.
            (2) Conforming amendment.--Paragraph (3) of section 45P(b) 
        is amended to read as follows:
            ``(3) Controlled groups.--All persons treated as a single 
        employer under subsection (b), (c), (m), or (o) of section 414 
        shall be treated as a single employer.''.
    (c) Expansion to 100 Percent of Eligible Differential Wage 
Payments.--Subsection (a) of section 45P is amended by striking ``20 
percent of the sum'' and inserting ``the sum''.
    (d) Effective Date.--The amendments made by this section shall 
apply to payments made after December 31, 2014.

SEC. 119. EXTENSION AND MODIFICATION OF WORK OPPORTUNITY TAX CREDIT.

    (a) In General.--Paragraph (4) of section 51(c) is amended by 
striking ``December 31, 2014'' and inserting ``December 31, 2016''.
    (b) Credit for Hiring Long-term Unemployment Recipients.--
            (1) In general.--Paragraph (1) of section 51(d) is amended 
        by striking ``or'' at the end of subparagraph (H), by striking 
        the period at the end of subparagraph (I) and inserting ``, 
        or'', and by adding at the end the following new subparagraph:
                    ``(J) a qualified long-term unemployment 
                recipient.''.
            (2) Qualified long-term unemployment recipient.--Subsection 
        (d) of section 51 is amended by adding at the end the following 
        new paragraph:
            ``(15) Qualified long-term unemployment recipient.--The 
        term `qualified long-term unemployment recipient' means any 
        individual who is certified by the designated local agency as 
        being in a period of unemployment which--
                    ``(A) is not less than 27 consecutive weeks, and
                    ``(B) includes a period in which the individual was 
                receiving unemployment compensation under State or 
                Federal law.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to individuals who begin work for the employer after December 31, 
2014.

SEC. 120. EXTENSION AND MODIFICATION OF QUALIFIED ZONE ACADEMY BONDS.

    (a) Extension.--Paragraph (1) of section 54E(c) is amended by 
striking ``and 2014'' and inserting ``2014, 2015, and 2016''.
    (b) Reduction of Private Business Contribution Requirement.--
Subsection (b) of section 54E is amended by striking ``10 percent'' and 
inserting ``5 percent''.
    (c) Effective Date.--The amendments made by this section shall 
apply to obligations issued after December 31, 2014.

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, 2015'' in subclause (I) and 
        inserting ``January 1, 2017'', and
            (2) by striking ``December 31, 2014'' in subclause (II) and 
        inserting ``December 31, 2016''.
    (b) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2014.

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, 2015'' and 
inserting ``January 1, 2017''.
    (b) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2014.

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, 2014'' and inserting ``December 31, 2016''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2014.

SEC. 124. EXTENSION AND MODIFICATION 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, 2014'' and inserting ``December 31, 2016''.
    (b) Election to Have Special Rules Not Apply.--Subsection (j) of 
section 168 is amended by redesignating paragraph (8), as amended by 
subsection (a), as paragraph (9), and by inserting after paragraph (7) 
the following new paragraph:
            ``(8) Election out.--If a taxpayer makes an election under 
        this paragraph with respect to any class of property for any 
        taxable year, this subsection shall not apply to all property 
        in such class placed in service during such taxable year. Such 
        election, once made, shall be irrevocable.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2014.

SEC. 125. EXTENSION OF BONUS DEPRECIATION.

    (a) In General.--Paragraph (2) of section 168(k) is amended--
            (1) by striking ``January 1, 2016'' in subparagraph (A)(iv) 
        and inserting ``January 1, 2018'', and
            (2) by striking ``January 1, 2015'' each place it appears 
        and inserting ``January 1, 2017''.
    (b) Special Rule for Federal Long-Term Contracts.--Clause (ii) of 
section 460(c)(6)(B) is amended by striking ``January 1, 2015 (January 
1, 2016'' and inserting ``January 1, 2017 (January 1, 2018''.
    (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, 2015'' 
        and inserting ``January 1, 2017''.
            (2) Round 5 extension property.--Paragraph (4) of section 
        168(k) is amended by adding at the end the following new 
        subparagraph:
                    ``(L) Special rules for round 5 extension 
                property.--
                            ``(i) In general.--In the case of round 5 
                        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 5 extension 
                                property.
                            ``(ii) Election.--
                                    ``(I) A taxpayer who has an 
                                election in effect under this paragraph 
                                for round 4 extension property shall be 
                                treated as having an election in effect 
                                for round 5 extension property unless 
                                the taxpayer elects to not have this 
                                paragraph apply to round 5 extension 
                                property.
                                    ``(II) A taxpayer who does not have 
                                an election in effect under this 
                                paragraph for round 4 extension 
                                property may elect to have this 
                                paragraph apply to round 5 extension 
                                property.
                            ``(iii) Round 5 extension property.--For 
                        purposes of this subparagraph, the term `round 
                        5 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 
                        Relief Extension Act of 2015 (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, 2015'' and inserting ``January 
        1, 2017''.
            (2) The heading for clause (ii) of section 168(k)(2)(B) is 
        amended by striking ``pre-january 1, 2015'' and inserting 
        ``pre-january 1, 2017''.
            (3) Subparagraph (C) of section 168(n)(2) is amended by 
        striking ``January 1, 2015'' and inserting ``January 1, 2017''.
            (4) Subparagraph (D) of section 1400L(b)(2) is amended by 
        striking ``January 1, 2015'' and inserting ``January 1, 2017''.
            (5) Subparagraph (B) of section 1400N(d)(3) is amended by 
        striking ``January 1, 2015'' and inserting ``January 1, 2017''.
    (e) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2014, 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, 2014'' and inserting ``December 31, 2016''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made after December 31, 2014.

SEC. 127. EXTENSION AND MODIFICATION 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 ``2015'' in subparagraph (B) and 
                inserting ``2017'', and
                    (B) by striking ``2014'' in subparagraph (C) and 
                inserting ``2016''.
            (2) Reduction in limitation.--Section 179(b)(2) is 
        amended--
                    (A) by striking ``2015'' in subparagraph (B) and 
                inserting ``2017'', and
                    (B) by striking ``2014'' in subparagraph (C) and 
                inserting ``2016''.
    (b) Computer Software.--Section 179(d)(1)(A)(ii) is amended by 
striking ``2015'' and inserting ``2017''.
    (c) Election.--Section 179(c)(2) is amended by striking ``2015'' 
and inserting ``2017''.
    (d) Special Rules for Treatment of Qualified Real Property.--
            (1) In general.--Section 179(f)(1) is amended by striking 
        ``2015'' and inserting ``2017''.
            (2) Carryover limitation.--
                    (A) In general.--Section 179(f)(4) is amended by 
                striking ``2014'' each place it appears and inserting 
                ``2016''.
                    (B) Conforming amendment.--The heading of 
                subparagraph (C) of section 179(f)(4) is amended by 
                striking ``and 2013'' and inserting ``2013, 2014, and 
                2015''.
    (e) Adjustment for Inflation.--Subsection (b) of section 179 is 
amended by adding at the end the following new paragraph:
            ``(6) Inflation adjustment.--
                    ``(A) In general.--In the case of any taxable year 
                beginning after 2014, the $500,000 amount in paragraph 
                (1)(B) and the $2,000,000 amount in paragraph (2)(B) 
                shall each be increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        by substituting `calendar year 2013' for 
                        `calendar year 1992' in subparagraph (B) 
                        thereof.
                    ``(B) Rounding.--
                            ``(i) Dollar limitation.--If the amount in 
                        paragraph (1)(B) as increased under 
                        subparagraph (A) is not a multiple of $1,000, 
                        such amount shall be rounded to the nearest 
                        multiple of $1,000.
                            ``(ii) Phaseout amount.--If the amount in 
                        paragraph (2)(B) as increased under 
                        subparagraph (A) is not a multiple of $10,000, 
                        such amount shall be rounded to the nearest 
                        multiple of $10,000.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2014.

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

    (a) In General.--Subsection (g) of section 179E is amended by 
striking ``December 31, 2014'' and inserting ``December 31, 2016''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2014.

SEC. 129. EXTENSION OF SPECIAL EXPENSING RULES FOR CERTAIN FILM AND 
              TELEVISION PRODUCTIONS; SPECIAL EXPENSING FOR LIVE 
              THEATRICAL PRODUCTIONS.

    (a) In General.--Subsection (f) of section 181 is amended by 
striking ``December 31, 2014'' and inserting ``December 31, 2016''.
    (b) Application to Live Productions.--
            (1) In general.--Paragraph (1) of section 181(a) is amended 
        by inserting ``, and any qualified live theatrical 
        production,'' after ``any qualified film or television 
        production''.
            (2) Conforming amendments.--Section 181 is amended--
                    (A) by inserting ``or any qualified live theatrical 
                production'' after ``qualified film or television 
                production'' each place it appears in subsections 
                (a)(2), (b), and (c)(1),
                    (B) by inserting ``or qualified live theatrical 
                productions'' after ``qualified film or television 
                productions'' in subsection (f), and
                    (C) by inserting ``and live theatrical'' after 
                ``film and television'' in the heading.
            (3) Clerical amendment.--The item relating to section 181 
        in the table of sections for part VI of subchapter B of chapter 
        1 is amended to read as follows:

``Sec. 181. Treatment of certain qualified film and television and live 
                            theatrical productions.''.
    (c) Qualified Live Theatrical Production.--Section 181 is amended--
            (1) by redesignating subsections (e) and (f), as amended by 
        subsections (a) and (b), as subsections (f) and (g), 
        respectively, and
            (2) by inserting after subsection (d) the following new 
        subsection:
    ``(e) Qualified Live Theatrical Production.--For purposes of this 
section--
            ``(1) In general.--The term `qualified live theatrical 
        production' means any production described in paragraph (2) if 
        75 percent of the total compensation of the production is 
        qualified compensation (as defined in subsection (d)(3)).
            ``(2) Production.--
                    ``(A) In general.--A production is described in 
                this paragraph if such production is a live staged 
                production of a play (with or without music) which is 
                derived from a written book or script and is produced 
                or presented by a taxable entity in any venue which has 
                an audience capacity of not more than 3,000 or a series 
                of venues the majority of which have an audience 
                capacity of not more than 3,000.
                    ``(B) Touring companies, etc.--In the case of 
                multiple live staged productions--
                            ``(i) for which the election under this 
                        section would be allowable to the same 
                        taxpayer, and
                            ``(ii) which are--
                                    ``(I) separate phases of a 
                                production, or
                                    ``(II) separate simultaneous 
                                stagings of the same production in 
                                different geographical locations (not 
                                including multiple performance 
                                locations of any one touring 
                                production),
                each such live staged production shall be treated as a 
                separate production.
                    ``(C) Phase.--For purposes of subparagraph (B), the 
                term `phase' with respect to any qualified live 
                theatrical production refers to each of the following, 
                but only if each of the following is treated by the 
                taxpayer as a separate activity for all purposes of 
                this title:
                            ``(i) The initial staging of a live 
                        theatrical production.
                            ``(ii) Subsequent additional stagings or 
                        touring of such production which are produced 
                        by the same producer as the initial staging.
                    ``(D) Seasonal productions.--
                            ``(i) In general.--In the case of a live 
                        staged production not described in subparagraph 
                        (B) which is produced or presented by a taxable 
                        entity for not more than 10 weeks of the 
                        taxable year, subparagraph (A) shall be applied 
                        by substituting `6,500' for `3,000'.
                            ``(ii) Short taxable years.--For purposes 
                        of clause (i), in the case of any taxable year 
                        of less than 12 months, the number of weeks for 
                        which a production is produced or presented 
                        shall be annualized by multiplying the number 
                        of weeks the production is produced or 
                        presented during such taxable year by 12 and 
                        dividing the result by the number of months in 
                        such taxable year.
                    ``(E) Exception.--A production is not described in 
                this paragraph if such production includes or consists 
                of any performance of conduct described in section 
                2257(h)(1) of title 18, United States Code.''.
    (d) Effective Dates.--
            (1) In general.--The amendments made by this section shall 
        apply to productions commencing after December 31, 2014.
            (2) Commencement.--For purposes of paragraph (1), the date 
        on which a qualified live theatrical production commences is 
        the date of the first public performance of such production for 
        a paying audience.

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 9 taxable years'' and inserting 
        ``first 11 taxable years'', and
            (2) by striking ``January 1, 2015'' and inserting ``January 
        1, 2017''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2014.

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, 2014'' and inserting ``December 31, 2016''.
    (b) Effective Date.--The amendment made by this section shall apply 
to payments received or accrued after December 31, 2014.

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, 2014'' and inserting 
``December 31, 2016''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2014.

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, 2014'' and inserting ``December 31, 2016''.
    (b) Effective Date.--
            (1) In general.--The amendment made by this section shall 
        take effect on January 1, 2015. 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, 
                2014, 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, 2015'' and inserting ``January 
        1, 2017'', and
            (2) by striking ``December 31, 2014'' and inserting 
        ``December 31, 2016''.
    (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, 2015'' and inserting 
``January 1, 2017''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years of foreign corporations beginning after December 
31, 2014, 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, 2015'' and inserting ``January 1, 2017''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years of foreign corporations beginning after December 31, 
2014, 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, 2015'' and inserting ``January 
        1, 2017'', and
            (2) by striking ``and 2014'' in the heading and inserting 
        ``2014, 2015, and 2016''.
    (b) Effective Date.--The amendments made by this section shall 
apply to stock acquired after December 31, 2014.

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, 2014'' and inserting ``December 31, 2016''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made in taxable years beginning after December 31, 
2014.

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 ``or 2014'' and inserting ``2014, 2015, or 
        2016'', and
            (2) by striking ``and 2014'' in the heading and inserting 
        ``2014, 2015, and 2016''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2014.

SEC. 139. EXTENSION AND MODIFICATION OF EMPOWERMENT ZONE TAX 
              INCENTIVES.

    (a) In General.--
            (1) Extension.--Clause (i) of section 1391(d)(1)(A) is 
        amended by striking ``December 31, 2014'' and inserting 
        ``December 31, 2016''.
            (2) 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.
            (3) Effective date.--The amendment made by this subsection 
        shall apply to periods after December 31, 2014.
    (b) Modification.--Clause (i) of section 1394(b)(3)(B) is amended--
            (1) by striking ``References'' and inserting the following:
                                    ``(I) In general.--Except as 
                                provided in subclause (II), 
                                references'', and
            (2) by adding at the end the following new subclause:
                                    ``(II) Special rule for employee 
                                residence test.--For purposes of 
                                subsection (b)(6) and (c)(5) of section 
                                1397C, an employee shall be treated as 
                                a resident of an empowerment zone if 
                                such employee is a resident of an 
                                empowerment zone, an enterprise 
                                community, or a qualified low-income 
                                community within an applicable 
                                nominating jurisdiction.''.
    (c) Definitions.--
            (1) Qualified low-income community.--Paragraph (3) of 
        section 1394(b) is amended by redesignating subparagraphs (C) 
        and (D) as subparagraphs (D) and (E), respectively, and by 
        inserting after subparagraph (B) the following new 
        subparagraph:
                    ``(C) Qualified low-income community.--For purposes 
                of subparagraph (B)--
                            ``(i) In general.--The term `qualified low-
                        income community' means any population census 
                        tract if--
                                    ``(I) the poverty rate for such 
                                tract is at least 20 percent, or
                                    ``(II) the median family income for 
                                such tract does not exceed 80 percent 
                                of statewide median family income (or, 
                                in the case of a tract located within a 
                                metropolitan area, metropolitan area 
                                median family income if greater).
                        Subclause (II) shall be applied using 
                        possessionwide median family income in the case 
                        of census tracts located within a possession of 
                        the United States.
                            ``(ii) Targeted populations.--The Secretary 
                        shall prescribe regulations under which 1 or 
                        more targeted populations (within the meaning 
                        of section 103(20) of the Riegle Community 
                        Development and Regulatory Improvement Act of 
                        1994) may be treated as qualified low-income 
                        communities.
                            ``(iii) Areas not within census tracts.--In 
                        the case of an area which is not tracted for 
                        population census tracts, the equivalent county 
                        divisions (as defined by the Bureau of the 
                        Census for purposes of defining poverty areas) 
                        shall be used for purposes of determining 
                        poverty rates and median family income.
                            ``(iv) Modification of income requirement 
                        for census tracts within high migration rural 
                        counties.--
                                    ``(I) In general.--In the case of a 
                                population census tract located within 
                                a high migration rural county, clause 
                                (i)(II) shall be applied to areas not 
                                located within a metropolitan area by 
                                substituting `85 percent' for `80 
                                percent'.
                                    ``(II) High migration rural 
                                county.--For purposes of this clause, 
                                the term `high migration rural county' 
                                means any county which, during the 20-
                                year period ending with the year in 
                                which the most recent census was 
                                conducted, has a net out-migration of 
                                inhabitants from the county of at least 
                                10 percent of the population of the 
                                county at the beginning of such 
                                period.''.
            (2) Applicable nominating jurisdiction.--Subparagraph (D) 
        of section 1394(b)(3), as redesignated by paragraph (1), is 
        amended by adding at the end the following new clause:
                            ``(iii) Applicable nominating 
                        jurisdiction.--The term `applicable nominating 
                        jurisdiction' means, with respect to any 
                        empowerment zone or enterprise community, any 
                        local government that nominated such community 
                        for designation under section 1391.''.
    (d) Conforming Amendments.--
            (1) Clause (iii) of section 1394(b)(3)(B) is amended by 
        striking ``or an enterprise community'' and inserting ``, an 
        enterprise community, or a qualified low-income community 
        within an applicable nominating jurisdiction''.
            (2) Subparagraph (D) of section 1394(b)(3), as redesignated 
        by subsection (c)(1), is amended by striking ``Definitions'' 
        and inserting ``Other definitions''.
    (e) Effective Date.--The amendments made by subsections (b), (c), 
and (d) shall apply to bonds issued before, on, or after the date of 
the enactment of this Act and not redeemed before the date of the 
enactment of this Act.

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, 2015'' and inserting ``January 1, 2017''.
    (b) Effective Date.--The amendment made by this section shall apply 
to distilled spirits brought into the United States after December 31, 
2014.

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, 2015'' each place it appears 
        and inserting ``January 1, 2017'',
            (2) by striking ``first 9 taxable years'' in paragraph (1) 
        and inserting ``first 11 taxable years'', and
            (3) by striking ``first 3 taxable years'' in paragraph (2) 
        and inserting ``first 5 taxable years''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2014.

                    Subtitle C--Energy Tax Extenders

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

    (a) In General.--Paragraph (2) of section 25C(g) is amended by 
striking ``December 31, 2014'' and inserting ``December 31, 2016''.
    (b) Updated Energy Star Requirements for Windows, Doors, Skylights, 
and Roofing.--
            (1) In general.--Paragraph (1) of section 25C(c) is amended 
        by striking ``which meets'' and all that follows through 
        ``requirements)''.
            (2) Energy efficient building envelope component.--
        Subsection (c) of section 25C is amended by redesignating 
        paragraphs (2) and (3) as paragraphs (3) and (4), respectively, 
        and by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) Energy efficient building envelope component.--The 
        term `energy efficient building envelope component' means a 
        building envelope component which meets--
                    ``(A) applicable Energy Star program requirements, 
                in the case of a roof or roof products,
                    ``(B) version 6.0 Energy Star program requirements, 
                in the case of an exterior window, a skylight, or an 
                exterior door, and
                    ``(C) the prescriptive criteria for such component 
                established by the 2009 International Energy 
                Conservation Code, as such Code (including supplements) 
                is in effect on the date of the enactment of the 
                American Recovery and Reinvestment Tax Act of 2009, in 
                the case of any other component.''.
            (3) Conforming amendment.--Subparagraph (D) of section 
        25C(c)(3), as so redesignated, is amended to read as follows:
                    ``(D) any roof or roof products which are installed 
                on a dwelling unit and are specifically and primarily 
                designed to reduce the heat gain of such dwelling 
                unit.''.
    (c) Separate Standards for Tankless and Storage Water Heaters.--
            (1) In general.--Subparagraph (D) of section 25C(d)(3) is 
        amended by striking ``which has either'' and all that follows 
        and inserting ``which has either--
                            ``(i) in the case of a storage water 
                        heater, an energy factor of at least 0.80 or a 
                        thermal efficiency of at least 90 percent, and
                            ``(ii) in the case of any other water 
                        heater, an energy factor of at least 0.90 or a 
                        thermal efficiency of at least 90 percent, 
                        and''.
            (2) Storage water heaters.--Paragraph (3) of section 25C(d) 
        is amended by adding at the end the following flush sentence:
        ``For purposes of subparagraph (D)(i), the term `storage water 
        heater' means a water heater that has a water storage capacity 
        of more than 20 gallons but not more than 55 gallons.''.
    (d) Modification of Testing Standards for Biomass Stoves.--
Subparagraph (E) of section 25C(d)(3) is amended by inserting before 
the period the following: ``, when tested using the higher heating 
value of the fuel and in accordance with the Canadian Standards 
Administration B415.1 test protocol''.
    (e) Separate Standard for Oil Hot Water Boilers.--Paragraph (4) of 
section 25C(d) is amended by striking ``95'' and inserting ``95 (90 in 
the case of an oil hot water boiler)''.
    (f) Installation Costs for Qualified Energy Efficiency 
Improvements.--Paragraph (1) of subsection (c) of section 25C is 
amended by adding at the end the following flush sentence:
        ``Such term includes expenditures for labor costs properly 
        allocable to the onsite preparation, assembly, or original 
        installation of the component.''.
    (g) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2014.

SEC. 152. EXTENSION OF CREDIT FOR NEW QUALIFIED FUEL CELL MOTOR 
              VEHICLES.

    (a) In General.--Paragraph (1) of section 30B(k) is amended by 
striking ``December 31, 2014'' and inserting ``December 31, 2016''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property purchased after December 31, 2014.

SEC. 153. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL VEHICLE REFUELING 
              PROPERTY.

    (a) In General.--Subsection (g) of section 30C is amended by 
striking ``December 31, 2014'' and inserting ``December 31, 2016''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2014.

SEC. 154. EXTENSION OF SECOND GENERATION BIOFUEL PRODUCER CREDIT.

    (a) In General.--Clause (i) of section 40(b)(6)(J) is amended by 
striking ``January 1, 2015'' and inserting ``January 1, 2017''.
    (b) Effective Date.--The amendment made by this subsection shall 
apply to qualified second generation biofuel production after December 
31, 2014.

SEC. 155. EXTENSION AND REFORM OF BIODIESEL TAX INCENTIVES.

    (a) Income Tax Credit.--
            (1) Extension.--
                    (A) Credits for biodiesel and renewable diesel used 
                as fuel.--Subsection (g) of section 40A is amended by 
                striking ``December 31, 2014'' and inserting ``December 
                31, 2016''.
                    (B) Effective date.--The amendment made by this 
                paragraph shall apply to fuel sold or used after 
                December 31, 2014.
            (2) Reform of income tax credit.--
                    (A) In general.--So much of section 40A as precedes 
                subsection (c) is amended to read as follows:

``SEC. 40A. BIODIESEL FUELS CREDIT.

    ``(a) In General.--For purposes of section 38, in the case of an 
eligible taxpayer, the biodiesel fuels credit determined under this 
section for the taxable year is $1.00 for each gallon of biodiesel 
produced by the taxpayer which during the taxable year--
            ``(1) is sold by the producer of such biodiesel to another 
        person--
                    ``(A) for use by such other person's trade or 
                business as a fuel or in the production of a biodiesel 
                mixture (other than casual off-farm production), or
                    ``(B) who sells such biodiesel at retail to another 
                person and places such biodiesel in the fuel tank of 
                such other person, or
            ``(2) is used by such producer for any purpose described in 
        paragraph (1).
    ``(b) Increased Credit for Small Producers.--
            ``(1) In general.--In the case of any eligible small 
        biodiesel producer, subsection (a) shall be applied by 
        increasing the dollar amount contained therein by 10 cents.
            ``(2) Limitation.--Paragraph (1) shall only apply with 
        respect to the first 15,000,000 gallons of biodiesel produced 
        by any eligible small biodiesel producer during any taxable 
        year.''.
                    (B) Definitions and special rules.--Section 40A(d) 
                is amended by striking all that follows paragraph (1) 
                and inserting the following
            ``(2) Eligible taxpayer.--
                    ``(A) In general.--The term `eligible taxpayer' 
                means, with respect to any gallon of biodiesel, the 
                producer of such gallon if such producer has paid the 
                tax imposed by section 4081 on such biodiesel.
                    ``(B) Special rule for eligible discretionary 
                blenders.--For purposes of this section (other than 
                subsection (b)), an eligible discretionary blender 
                shall be treated as the producer of any gallon of 
                biodiesel which is used to make a qualified biodiesel 
                mixture if--
                            ``(i) the producer of such biodiesel 
                        (determined without regard to this 
                        subparagraph)--
                                    ``(I) did not pay the tax imposed 
                                under section 4081 with respect to such 
                                gallon, and
                                    ``(II) assigns the credit allowed 
                                under this section to the eligible 
                                discretionary blender in such form and 
                                manner as provided by the Secretary, 
                                and
                            ``(ii) such eligible discretionary blender 
                        pays the tax imposed under section 4081 with 
                        respect to such gallon.
                For purposes of the preceding sentence, an eligible 
                discretionary blender shall be treated as producing a 
                gallon of biodiesel in the taxable year in which the 
                sale or use of the qualified biodiesel mixture occurs.
                    ``(C) Eligible discretionary blender.--For purposes 
                of subparagraph (B), the term `eligible discretionary 
                blender' means any person who--
                            ``(i) is registered under section 4101 as a 
                        blender of qualified biodiesel mixtures, and
                            ``(ii) has used 10,000,000 or more gallons 
                        of biodiesel in the production of qualified 
                        biodiesel mixtures in the preceding taxable 
                        year.
            ``(3) Biodiesel mixture; qualified biodiesel mixture.--
                    ``(A) Biodiesel mixture.--The term `biodiesel 
                mixture' means a mixture consists of biodiesel and 
                diesel fuel (as defined in section 4083(a)(3)), 
                determined without regard to any use of kerosene.
                    ``(B) Qualified biodiesel mixture.--
                            ``(i) In general.--The term `qualified 
                        biodiesel mixture' means a biodiesel mixture 
                        which is produced by an eligible discretionary 
                        blender and--
                                    ``(I) sold by such eligible 
                                discretionary blender to any person for 
                                use as a fuel, or
                                    ``(II) used by such eligible 
                                discretionary blender as a fuel.
                            ``(ii) Sale or use must be in trade or 
                        business, etc.--A biodiesel mixture shall not 
                        be treated as a qualified biodiesel mixture 
                        unless the sale or use described in clause (i) 
                        is in a trade or business of the eligible 
                        discretionary blender.
            ``(4) Biodiesel not used for a qualified purpose.--If--
                    ``(A) any credit was determined with respect to any 
                biodiesel under this section, and
                    ``(B) any person uses such biodiesel for a purpose 
                not described in subsection (a),
        then there is hereby imposed on such person a tax equal to the 
        product of the rate applicable under subsection (a) and the 
        number of gallons of such biodiesel.
            ``(5) Pass-thru in the case of estates and trusts.--Under 
        regulations prescribed by the Secretary, rules similar to the 
        rules of subsection (d) of section 52 shall apply.
            ``(6) Limitation to biodiesel with connection to the united 
        states.--No credit shall be determined under subsection (a) 
        with respect to biodiesel unless such biodiesel is produced in 
        the United States. For purposes of this paragraph, the term 
        `United States' includes any possession of the United 
        States.''.
                    (C) Rules for small biodiesel producers.--
                            (i) In general.--Section 40A(e) is 
                        amended--
                                    (I) by striking ``agri-biodiesel'' 
                                each place it appears in paragraphs (1) 
                                and (5)(A) and inserting ``biodiesel'',
                                    (II) by striking ``subsection 
                                (b)(4)(C)'' each place it appears in 
                                paragraphs (2) and (3) and inserting 
                                ``subsection (b)(2)'', and
                                    (III) by striking ``subsection 
                                (a)(3)'' each place it appears in 
                                paragraphs (5)(A), (6)(A)(i), and 
                                (6)(B)(i) and inserting ``subsection 
                                (b)''.
                            (ii) The heading for subsection (e) of 
                        section 40A is amended by striking ``Agri-
                        biodiesel'' and inserting ``Biodiesel''.
                            (iii) The headings for paragraphs (1) and 
                        (6) of section 40A(e) are each amended by 
                        striking ``agri-biodiesel'' and inserting 
                        ``biodiesel''.
                    (D) Conforming amendments related to renewable 
                diesel.--Section 40A(f) is amended--
                            (i) by striking ``Subsection (b)(4)'' and 
                        inserting ``Subsection (b)'', and
                            (ii) by striking paragraph (4) and 
                        inserting the following:
            ``(4) Certain aviation fuel.--Except as provided in the 
        last 3 sentences of paragraph (2), the term `renewable diesel' 
        shall include fuel derived from biomass which meets the 
        requirements of a Department of Defense specification for 
        military jet fuel or an American Society of Testing and 
        Materials specification for aviation turbine fuel.''.
                    (E) Registration of eligible discretionary 
                blenders.--Section 4101(a)(1) is amended--
                            (i) by striking ``and'' before ``every 
                        person producing second generation biofuel'', 
                        and
                            (ii) by inserting ``, and every person 
                        producing qualified biodiesel mixtures (as 
                        defined in section 40A(d)(3))'' after ``section 
                        40(b)(6)(E)) in excess of 10,000,000 gallons 
                        per year''.
                    (F) Clerical amendment.--The table of sections for 
                subpart D of part IV of subchapter A of chapter 1 is 
                amended by striking the item relating to section 40A 
                and inserting the following new item:

``Sec. 40A. Biodiesel fuels credit.''.
                    (G) Effective date.--The amendments made by this 
                paragraph shall apply to fuel sold or used after 
                December 31, 2015.
    (b) Excise Tax Incentives.--
            (1) Extension.--
                    (A) In general.--Paragraph (6) of section 6426(c) 
                is amended by striking ``December 31, 2014'' and 
                inserting ``December 31, 2016''.
                    (B) Payments.--Subparagraph (B) of section 
                6427(e)(6) is amended by striking ``December 31, 2014'' 
                and inserting ``December 31, 2016''.
                    (C) Effective date.--The amendments made by this 
                paragraph shall apply to fuel sold or used after 
                December 31, 2014.
                    (D) Special rule for certain periods during 2015.--
                Notwithstanding any other provision of law, in the case 
                of any biodiesel mixture credit properly determined 
                under section 6426(c) of the Internal Revenue Code of 
                1986 for periods after December 31, 2014, and on or 
                before the last day of the first calendar quarter 
                ending after the date of the enactment of this Act, 
                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.
            (2) Reform of excise tax credit.--
                    (A) In general.--Subsection (c) of section 6426 is 
                amended--
                            (i) by striking all that precedes paragraph 
                        (6) and inserting the following:
    ``(c) Biodiesel Production Credit.--
            ``(1) In general.--For purposes of this section, in the 
        case of an eligible taxpayer, the biodiesel production credit 
        is $1.00 for each gallon of biodiesel produced by the taxpayer 
        and which--
                    ``(A) is sold by such producer to another person--
                            ``(i) for use by such other person's trade 
                        or business as a fuel or in the production of a 
                        biodiesel mixture (other than casual off-farm 
                        production), or
                            ``(ii) who sells such biodiesel at retail 
                        to another person and places such biodiesel in 
                        the fuel tank of such other person, or
                    ``(B) is used by such producer for any purpose 
                described in subparagraph (A).
            ``(2) Special rule for eligible discretionary blenders.--
        For purposes of this subsection and section 6427(e)(3), an 
        eligible discretionary blender shall be treated as the producer 
        of any gallon of biodiesel which is used to make a qualified 
        biodiesel mixture if--
                    ``(A) the producer of such biodiesel (determined 
                without regard to this subparagraph)--
                            ``(i) did not pay the tax imposed under 
                        section 4081 with respect to such gallon, and
                            ``(ii) assigns the credit allowed under 
                        this section to the eligible discretionary 
                        blender in such form and manner as provided by 
                        the Secretary, and
                    ``(B) such eligible discretionary blender pays the 
                tax imposed under section 4081 with respect to such 
                gallon.
        For purposes of the preceding sentence, an eligible 
        discretionary blender shall not be treated as producing a 
        gallon of biodiesel before the date on which the sale or use of 
        the qualified biodiesel mixture occurs.
            ``(3) Definitions.--Any term used in this subsection which 
        is also used in section 40A shall have the meaning given such 
        term by section 40A.'', and
                            (ii) by redesignating paragraph (6), as 
                        amended by paragraph (1)(A), as paragraph (4).
                    (B) Producer registration requirement.--Subsection 
                (a) of section 6426 is amended by striking 
                ``subsections (d) and (e)'' in the flush sentence at 
                the end and inserting ``subsections (c), (d), and 
                (e)''.
                    (C) Recapture.--
                            (i) In general.--Subsection (f) of section 
                        6426 is amended--
                                    (I) by striking ``or biodiesel'' 
                                each place it appears in subparagraphs 
                                (A) and (B)(i) of paragraph (1),
                                    (II) by striking ``or biodiesel 
                                mixture'' in paragraph (1)(A), and
                                    (III) by redesignating paragraph 
                                (2) as paragraph (3) and by inserting 
                                after paragraph (1) the following new 
                                paragraph:
            ``(2) Biodiesel.--If any credit was determined under this 
        section or paid pursuant to section 6427(e) with respect to the 
        production of any biodiesel and any person uses such biodiesel 
        for a purpose not described in subsection (c)(1), then there is 
        hereby imposed on such person a tax equal to $1 for each gallon 
        of such biodiesel.''.
                            (ii) Conforming amendments.--
                                    (I) Paragraph (3) of section 
                                6426(f), as redesignated by clause 
                                (i)(III), is amended by inserting ``or 
                                (2)'' after ``paragraph (1)''.
                                    (II) The heading for paragraph (1) 
                                of section 6426(f) is amended by 
                                striking ``Imposition of tax'' and 
                                inserting ``In general''.
                    (D) Limitation.--Section 6426(i) is amended--
                            (i) in paragraph (2)--
                                    (I) by striking ``biodiesel or'', 
                                and
                                    (II) by striking ``Biodiesel and'' 
                                in the heading, and
                            (ii) by inserting after paragraph (2) the 
                        following new paragraph:
            ``(3) Biodiesel.--No credit shall be determined under this 
        section with respect to biodiesel unless such biodiesel is 
        produced in the United States.''.
                    (E) Clerical amendments.--
                            (i) The heading of section 6426 is amended 
                        by striking ``alcohol fuel, biodiesel, and 
                        alternative fuel mixtures'' and inserting 
                        ``alcohol fuel mixtures, biodiesel production, 
                        and alternative fuel mixtures''.
                            (ii) The item relating to section 6426 in 
                        the table of sections for subchapter B of 
                        chapter 65 is amended by striking ``alcohol 
                        fuel, biodiesel, and alternative fuel 
                        mixtures'' and inserting ``alcohol fuel 
                        mixtures, biodiesel production, and alternative 
                        fuel mixtures''.
                    (F) Effective date.--The amendments made by this 
                paragraph shall apply to fuel sold or used after 
                December 31, 2015.
            (3) Reform of excise payments of credit.--
                    (A) In general.--Subsection (e) of section 6427, as 
                amended by paragraph (1)(B), is amended--
                            (i) by striking ``or the biodiesel mixture 
                        credit'' in paragraph (1),
                            (ii) by redesignating paragraphs (3) 
                        through (6) as paragraphs (4) through (7), 
                        respectively, and by inserting after paragraph 
                        (2) the following new paragraph:
            ``(3) Biodiesel production credit.--If any person produces 
        biodiesel and sells or uses such biodiesel as provided in 
        section 6426(c)(1), the Secretary shall pay (without interest) 
        to such person an amount equal to the biodiesel production 
        credit with respect to such biodiesel.'',
                            (iii) by striking ``paragraph (1) or (2)'' 
                        each place it appears in paragraphs (4) and 
                        (6), as redesignated by paragraph (2), and 
                        inserting ``paragraph (1), (2), or (3)'',
                            (iv) by striking ``alternative fuel'' each 
                        place it appears in paragraphs (4) and (6), as 
                        redesignated by paragraph (2), and inserting 
                        ``fuel'', and
                            (v) by striking ``biodiesel mixture (as 
                        defined in section 6426(c)(3))'' in paragraph 
                        (7)(B), as so redesignated, and inserting 
                        ``biodiesel (within the meaning of section 
                        40A)''.
                    (B) Effective date.--The amendments made by this 
                paragraph shall apply to fuel sold or used after 
                December 31, 2015.
    (c) Treatment of Biodiesel as a Taxable Fuel.--
            (1) In general.--
                    (A) Taxable fuel includes biodiesel.--Paragraph (1) 
                of section 4083(a) is amended by striking ``and'' at 
                the end of subparagraph (B), by striking the period at 
                the end of subparagraph (C) and inserting ``, and'', 
                and by adding at the end the following new 
                subparagraph:
                    ``(D) biodiesel.''.
                    (B) Biodiesel defined.--Subsection (a) of section 
                4083 is amended by adding at the end the following new 
                paragraph:
            ``(4) Biodiesel.--The term `biodiesel' has the meaning 
        given such term under section 40A(d)(1), determined without 
        regard to the last sentence thereof.''.
            (2) Biodiesel production facilities treated as 
        refineries.--
                    (A) In general.--Subsection (a) of section 4081 is 
                amended by adding at the end the following new 
                paragraph:
            ``(5) Biodiesel production facilities and blending 
        facilities treated as refineries.--For purposes of this part--
                    ``(A) any facility which is used to produce 
                biodiesel, and
                    ``(B) any biodiesel blending facility,
        shall be treated as a refinery with respect to biodiesel.''.
                    (B) Biodiesel blending facility defined.--Section 
                4083 is amended by adding at the end the following new 
                subsection:
    ``(e) Biodiesel Blending Facility.--For purposes of this subpart, 
the term `biodiesel blending facility' means any facility that is 
operated by an eligible discretionary blender (as defined in section 
40A(d)(2)(C)).''.
                    (C) Bulk transfers.--Subparagraph (B) of section 
                4081(a)(1) is amended by adding at the end the 
                following new clause:
                            ``(iii) Special rules for biodiesel.--The 
                        tax imposed by this paragraph shall not apply 
                        to the removal or entry of biodiesel to any 
                        refinery or terminal if the person removing or 
                        entering the biodiesel and the operator of the 
                        refinery or terminal are registered under 
                        section 4101.''.
            (3) Rate of tax.--Subparagraph (A)(iii) of section 
        4081(a)(2) is amended by striking ``diesel fuel or kerosene'' 
        and inserting ``diesel fuel, kerosene, or biodiesel''.
            (4) Exemptions.--
                    (A) In general.--Section 4082 is amended by 
                striking ``diesel fuel and kerosene'' each place it 
                appears in subsections (a), (c), and (g) and inserting 
                ``diesel fuel, kerosene, and biodiesel''.
                    (B) Conforming amendment.--Subparagraph (A) of 
                section 4082(d)(1) is amended by inserting 
                ``biodiesel,'' after ``diesel fuel,''.
            (5) Other conforming amendments.--
                    (A) The heading for paragraph (1) of section 
                4041(a) is amended by striking ``diesel fuel and 
                kerosene'' and inserting ``diesel fuel, kerosene, and 
                biodiesel''.
                    (B) Paragraph (2) of section 6416(b) is amended by 
                striking ``diesel fuel or kerosene'' and inserting 
                ``diesel fuel, kerosene, or biodiesel''.
                    (C) Section 6427(l) is amended--
                            (i) by striking ``diesel fuel or kerosene'' 
                        each place it appears in paragraph (1) and 
                        (5)(A) and inserting ``diesel fuel, kerosene, 
                        or biodiesel'',
                            (ii) by striking ``Diesel Fuel and 
                        Kerosene'' in the heading and inserting 
                        ``Diesel Fuel, Kerosene, and Biodiesel'', and
                            (iii) by striking ``diesel fuel or 
                        kerosene'' in the heading of paragraph (5) and 
                        inserting ``diesel fuel, kerosene, or 
                        biodiesel''.
                    (D) Section 6715(c)(1) is amended by striking 
                ``diesel fuel or kerosene'' and inserting ``diesel 
                fuel, kerosene, or biodiesel''.
            (6) Effective date.--The amendments made by this subsection 
        shall apply to biodiesel sold or used after December 31, 2015.

SEC. 156. 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 ``9-year period'' each place it appears and inserting ``11-
year period''.
    (b) Effective Date.--The amendment made by this section shall apply 
to coal produced after December 31, 2014.

SEC. 157. 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, 2015'' each place it appears and 
inserting ``January 1, 2017'':
            (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, 2015'' and inserting ``January 1, 2017''.
    (c) Effective Dates.--The amendments made by this section shall 
take effect on January 1, 2015.

SEC. 158. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT NEW HOMES.

    (a) In General.--Subsection (g) of section 45L is amended by 
striking ``December 31, 2014'' and inserting ``December 31, 2016''.
    (b) Effective Date.--The amendment made by this section shall apply 
to homes acquired after December 31, 2014.

SEC. 159. 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, 2015'' and inserting ``January 1, 2017''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2014.

SEC. 160. EXTENSION AND MODIFICATION OF ENERGY EFFICIENT COMMERCIAL 
              BUILDINGS DEDUCTION.

    (a) In General.--Subsection (h) of section 179D is amended by 
striking ``December 31, 2014'' and inserting ``December 31, 2016''.
    (b) Allocations to Indian Tribal Governments.--Paragraph (4) of 
section 179D(d) is amended by striking ``or local'' and inserting 
``local, or Indian tribal''.
    (c) Allocations to Certain Nonprofit Organizations.--
            (1) In general.--Paragraph (4) of section 179D(d), as 
        amended by subsection (b), is amended by inserting ``, or by an 
        organization that is described in section 501(c)(3) and exempt 
        from tax under section 501(a)'' after ``political subdivision 
        thereof''.
            (2) Clerical amendment.--The heading of paragraph (4) of 
        section 179D(d) is amended by inserting ``and property held by 
        certain non-profits'' after ``public property''.
    (d) Updated ASHRAE Standards for 2016.--
            (1) In general.--Paragraph (1) of section 179D(c) is 
        amended by striking ``Standard 90.1-2001'' each place it 
        appears and inserting ``Standard 90.1-2007''.
            (2) Conforming amendments.--
                    (A) Paragraph (2) of section 179D(c) is amended to 
                read as follows:
            ``(2) Standard 90.1-2007.--The term `Standard 90.1-2007' 
        means Standard 90.1-2007 of the American Society of Heating, 
        Refrigerating, and Air Conditioning Engineers and the 
        Illuminating Engineering Society of North America (as in effect 
        on the day before the date of the adoption of Standard 90.1-
        2010 of such Societies).''.
                    (B) Subsection (f) of section 179D is amended by 
                striking ``Standard 90.1-2001'' each place it appears 
                in paragraphs (1) and (2)(C)(i) and inserting 
                ``Standard 90.1-2007''.
                    (C) Paragraph (1) of section 179D(f) is amended--
                            (i) by striking ``Table 9.3.1.1'' and 
                        inserting ``Table 9.5.1'', and
                            (ii) by striking ``Table 9.3.1.2'' and 
                        inserting ``Table 9.6.1''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to property placed in service after December 31, 
        2015.
    (e) Effective Date.--Except as provided in subsection (d)(3), the 
amendments made by this section shall apply to property placed in 
service after December 31, 2014.

SEC. 161. 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, 2015'' and inserting ``January 1, 2017''.
    (b) Effective Date.--The amendment made by this section shall apply 
to dispositions after December 31, 2014.

SEC. 162. EXTENSION OF EXCISE TAX CREDITS RELATING TO ALTERNATIVE 
              FUELS.

    (a) 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, 2014'' and inserting 
        ``December 31, 2016''.
            (2) Outlay payments for alternative fuels.--Subparagraph 
        (C) of section 6427(e)(7), as redesignated by section 
        155(b)(3)(A)(ii), is amended by striking ``December 31, 2014'' 
        and inserting ``December 31, 2016''.
    (b) Effective Date.--The amendments made by this section shall 
apply to fuel sold or used after December 31, 2014.
    (c) Special Rule for Certain Periods During 2015.--Notwithstanding 
any other provision of law, in the case of 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.

                TITLE II--PROVISION THAT EXPIRED IN 2013

SEC. 201. EXTENSION OF CREDIT FOR 2-WHEELED PLUG-IN ELECTRIC VEHICLES.

    (a) In General.--Subparagraph (E) of section 30D(g)(3) is amended 
by striking ``acquired'' and all that follows and inserting 
``acquired--
                            ``(i) after December 31, 2011, and before 
                        January 1, 2014, and
                            ``(ii) in the case of a vehicle that has 2 
                        wheels--
                                    ``(I) during the period described 
                                in clause (i), or
                                    ``(II) after December 31, 2014, and 
                                before January 1, 2017.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to vehicles acquired after December 31, 2014.

                     TITLE III--REVENUE PROVISIONS

SEC. 301. EXCLUSION FROM GROSS INCOME OF CERTAIN CLEAN COAL POWER 
              GRANTS TO NON-CORPORATE TAXPAYERS.

    (a) General Rule.--In the case of an eligible taxpayer other than a 
corporation, gross income for purposes of the Internal Revenue Code of 
1986 shall not include any amount received under section 402 of the 
Energy Policy Act of 2005.
    (b) Reduction in Basis.--The basis of any property subject to the 
allowance for depreciation under the Internal Revenue Code of 1986 
which is acquired with any amount to which subsection (a) applies 
during the 12-month period beginning on the day such amount is received 
shall be reduced by an amount equal to such amount. The excess (if any) 
of such amount over the amount of the reduction under the preceding 
sentence shall be applied to the reduction (as of the last day of the 
period specified in the preceding sentence) of the basis of any other 
property held by the taxpayer. The particular properties to which the 
reductions required by this subsection are allocated shall be 
determined by the Secretary of the Treasury (or the Secretary's 
delegate) under regulations similar to the regulations under section 
362(c)(2) of such Code.
    (c) Limitation to Amounts Which Would Be Contributions to 
Capital.--Subsection (a) shall not apply to any amount unless such 
amount, if received by a corporation, would be excluded from gross 
income under section 118 of the Internal Revenue Code of 1986.
    (d) Eligible Taxpayer.--For purposes of this section, with respect 
to any amount received under section 402 of the Energy Policy Act of 
2005, the term ``eligible taxpayer'' means a taxpayer that makes a 
payment to the Secretary of the Treasury (or the Secretary's delegate) 
equal to 1.18 percent of the amount so received. Such payment shall be 
made at such time and in such manner as such Secretary (or the 
Secretary's delegate) shall prescribe. In the case of a partnership, 
such Secretary (or the Secretary's delegate) shall prescribe 
regulations to determine the allocation of such payment amount among 
the partners.
    (e) Effective Date.--This section shall apply to amounts received 
under section 402 of the Energy Policy Act of 2005 in taxable years 
beginning after December 31, 2011.

SEC. 302. TREATMENT OF CERTAIN PERSONS AS EMPLOYERS WITH RESPECT TO 
              MOTION PICTURE PROJECTS.

    (a) In General.--Chapter 25 (relating to general provisions 
relating to employment taxes) is amended by adding at the end the 
following new section:

``SEC. 3512. TREATMENT OF CERTAIN PERSONS AS EMPLOYERS WITH RESPECT TO 
              MOTION PICTURE PROJECTS.

    ``(a) In General.--For purposes of sections 3121(a)(1) and 
3306(b)(1), remuneration paid to a motion picture project worker by a 
motion picture project employer during a calendar year shall be treated 
as remuneration paid with respect to employment of such worker by such 
employer during the calendar year. The identity of such employer for 
such purposes shall be determined as set forth in this section and 
without regard to the usual common law rules applicable in determining 
the employer-employee relationship.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Motion picture project employer.--The term `motion 
        picture project employer' means any person if--
                    ``(A) such person (directly or through 
                affiliates)--
                            ``(i) is a party to a written contract 
                        covering the services of motion picture project 
                        workers with respect to motion picture projects 
                        in the course of a client's trade or business,
                            ``(ii) is contractually obligated to pay 
                        remuneration to the motion picture project 
                        workers without regard to payment or 
                        reimbursement by any other person,
                            ``(iii) controls the payment (within the 
                        meaning of section 3401(d)(1)) of remuneration 
                        to the motion picture project workers and pays 
                        such remuneration from its own account or 
                        accounts,
                            ``(iv) is a signatory to one or more 
                        collective bargaining agreements with a labor 
                        organization (as defined in 29 U.S.C. 152(5)) 
                        that represents motion picture project workers, 
                        and
                            ``(v) has treated substantially all motion 
                        picture project workers that such person pays 
                        as employees and not as independent contractors 
                        during such calendar year for purposes of 
                        determining employment taxes under this 
                        subtitle, and
                    ``(B) at least 80 percent of all remuneration (to 
                which section 3121 applies) paid by such person in such 
                calendar year is paid to motion picture project 
                workers.
            ``(2) Motion picture project worker.--The term `motion 
        picture project worker' means any individual who provides 
        services on motion picture projects for clients who are not 
        affiliated with the motion picture project employer.
            ``(3) Motion picture project.--The term `motion picture 
        project' means the production of any property described in 
        section 168(f)(3). Such term does not include property with 
        respect to which records are required to be maintained under 
        section 2257 of title 18, United States Code.
            ``(4) Affiliate; affiliated.--A person shall be treated as 
        an affiliate of, or affiliated with, another person if such 
        persons are treated as a single employer under subsection (b) 
        or (c) of section 414.''.
    (b) Clerical Amendment.--The table of sections for such chapter 25 
is amended by adding at the end the following new item:

``Sec. 3512. Treatment of certain persons as employers with respect to 
                            motion picture projects.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to remuneration paid after December 31, 2015.
    (d) No Inference.--Nothing in the amendments made by this section 
shall be construed to create any inference on the law before the date 
of the enactment of this Act.

SEC. 303. EQUALIZATION OF EXCISE TAX AND CREDITS WITH RESPECT TO 
              LIQUEFIED PETROLEUM GAS AND LIQUEFIED NATURAL GAS.

    (a) Liquefied Petroleum Gas.--
            (1) In general.--Subparagraph (B) of section 4041(a)(2) is 
        amended by striking ``and'' at the end of clause (i), by 
        redesignating clause (ii) as clause (iii), and by inserting 
        after clause (i) the following new clause:
                            ``(ii) in the case of liquefied petroleum 
                        gas, 18.3 cents per energy equivalent of a 
                        gallon of gasoline, and''.
            (2) Energy equivalent of a gallon of gasoline.--Paragraph 
        (2) of section 4041(a) is amended by adding at the end the 
        following:
                    ``(C) Energy equivalent of a gallon of gasoline.--
                For purposes of this paragraph, the term energy 
                equivalent of a gallon of gasoline means, with respect 
                to a liquefied petroleum gas fuel, the amount of such 
                fuel having a Btu content of 115,400 (lower heating 
                value).''.
    (b) Liquefied Natural Gas.--
            (1) In general.--Subparagraph (B) of section 4041(a)(2), as 
        amended by subsection (a)(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 inserting after 
        clause (iii) the following new clause:
                            ``(iv) in the case of liquefied natural 
                        gas, 24.3 cents per energy equivalent of a 
                        gallon of diesel.''.
            (2) Energy equivalent of a gallon of diesel.--Paragraph (2) 
        of section 4041(a), as amended by subsection (a)(2), is amended 
        by adding at the end the following:
                    ``(D) Energy equivalent of a gallon of diesel.--For 
                purposes of this paragraph, the term energy equivalent 
                of a gallon of diesel means, with respect to a 
                liquefied natural gas fuel, the amount of such fuel 
                having a Btu content of 128,700 (lower heating 
                value).''.
            (3) Conforming amendments.--Section 4041(a)(2)(B)(iii), as 
        redesignated by subsection (a)(1), is amended--
                    (A) by striking ``liquefied natural gas,'', and
                    (B) by striking ``peat), and'' and inserting 
                ``peat) and''.
    (c) Credits.--Section 6426 is amended by adding at the end the 
following new subsection:
    ``(j) Energy Equivalency Determinations for Liquefied Petroleum Gas 
and Liquefied Natural Gas.--For purposes of determining any credit 
under this section, any reference to the number of gallons of an 
alternative fuel or the gasoline gallon equivalent of such a fuel shall 
be treated as a reference to--
            ``(1) in the case of liquefied petroleum gas, the energy 
        equivalent of a gallon of gasoline, as defined in section 
        4041(a)(2)(C), and
            ``(2) in the case of liquefied natural gas, the energy 
        equivalent of a gallon of diesel, as defined in section 
        4041(a)(2)(D).''.
    (d) Effective Date.--The amendments made by this section shall 
apply to fuel sold or used after December 31, 2014.

SEC. 304. ADDITIONAL INFORMATION ON RETURNS RELATING TO MORTGAGE 
              INTEREST.

    (a) In General.--Paragraph (2) of section 6050H(b) is amended by 
striking ``and'' at the end of subparagraph (C), by redesignating 
subparagraph (D) as subparagraph (G), and by inserting after 
subparagraph (C) the following new subparagraphs:
                    ``(D) the amount of outstanding principal on the 
                mortgage at the beginning of the calendar year,
                    ``(E) the address of the property securing such 
                mortgage,
                    ``(F) the date of the origination of such mortgage, 
                and''.
    (b) Payee Statements.--Subsection (d) of section 6050H is amended 
by striking ``and'' at the end of paragraph (1), by striking the period 
at the end of paragraph (2) and inserting ``, and'', and by inserting 
after paragraph (2) the following new paragraph:
            ``(3) the information required to be included on the return 
        under subparagraphs (D), (E), and (F) of subsection (b)(2).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to returns and statements the due date for which (determined 
without regard to extensions) is after December 31, 2016.

                      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).
                                                       Calendar No. 198

114th CONGRESS

  1st Session

                                S. 1946

                          [Report No. 114-118]

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                             August 5, 2015

                 Read twice and placed on the calendar