[Congressional Record Volume 158, Number 107 (Tuesday, July 17, 2012)]
[Senate]
[Pages S5086-S5089]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. KOHL (for himself, Mr. Coons, and Mr. Whitehouse):
S. 3389. A bill to modify chapter 90 of title 18, United States Code,
to provide Federal jurisdiction for theft of trade secrets; to the
Committee on the Judiciary.
Mr. KOHL. Mr. President, I rise today to introduce the Protecting
American Trade Secrets and Innovation Act of 2012. This legislation
will help American companies protect their valuable trade secrets by
giving them the additional option of seeking redress in Federal courts
when they are victims of economic espionage or trade secret theft.
Stolen trade secrets cost American companies billions of dollars each
year and threaten their ability to innovate and compete globally. Our
bill ensures that companies have the most effective and efficient ways
to combat trade secret theft and recoup their losses, helping them to
maintain their global competitive edge.
Today, as much as 80 percent of companies' assets are intangible, the
majority of them in the form of trade secrets. This includes everything
from financial, business, scientific, technical, economic, or
engineering information, to formulas, designs, prototypes, processes,
procedures, and codes. Trade secrets are often the lifeblood of a
business. If they are stolen and wind up in the hands of competitors,
it can wipe out years of research and development and cost millions of
dollars in losses. The chief executive of GM recently said that he
worries about trade secret theft ``every day.'' This comes as no
surprise considering the loss to Ford Motor Company in 2006 when an
employee stole 4,000 documents which he took to China and used for the
benefit of his new employer Beijing Automotive Company, a competitor to
Ford. The damage to Ford was estimated to be between $50 million and
$100 million.
In 1996, Congress enacted the Economic Espionage Act, which made
economic espionage and trade secret theft a Federal crime. Nearly 15
years later, trade secret theft and economic espionage continue to pose
a threat to U.S. companies, yet there is no Federal civil remedy for
victims. To complement the criminal enforcement of economic espionage
and State trade secret laws, the Protecting American Trade Secrets and
Innovation Act would provide another avenue for companies to protect
their trade secrets. The bill enables victims of trade secret theft to
seek injunctive relief, putting an immediate halt to trade secret
misappropriation, and compensation for their losses in Federal court.
It will help fill a gap in Federal intellectual property law by
providing legal protections for non-patentable, non-copyrightable
innovations, on the condition that the owner of the innovation has
taken reasonable measures to keep the innovation a secret.
Today, companies that fall victim to economic espionage and trade
secret theft often can only bring civil actions in State court, under a
patchwork of State laws, to stop the harm or seek compensation for
losses. While State courts may be a suitable venue in some cases, major
trade secret cases will often require tools available more readily in
Federal court, such as nationwide service of process for subpoenas,
discovery and witness depositions. In addition, for trade secret
holders operating nationwide, a single Federal statute can be more
efficient than navigating 50 different State laws. Finally, our bill
permits judges to issue seizure orders to prevent defendants from
destroying evidence. In sum, our bill demonstrates a Federal commitment
to trade secret protection by expanding the legal options for victims
of economic espionage and trade secret theft.
This legislation will not inundate Federal courts with minor trade
secret cases because it includes limits so that only the most serious
cases requiring Federal courts will be permitted. These limitations
require the victim of trade secret theft to certify that the dispute
requires either a substantial need for nationwide service of process or
the misappropriation of trade secrets from the U.S. to another country.
Finally, it is important to emphasize that our legislation is not
intended to replace State trade secret laws, but to complement them to
ensure that victims of economic espionage and trade secret
misappropriation can get the most prompt, effective and efficient
justice.
We cannot take lightly the threat of trade secrets theft to American
businesses, American jobs, and American innovation. This legislation is
another simple and straightforward step we can take to help companies
defend themselves against trade secret theft. It demonstrates our
commitment at the Federal level to protect all forms of a business's
intellectual property and their innovative spirit.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 3389
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Protecting American Trade
Secrets and Innovation Act of 2012''.
SEC. 2. FEDERAL JURISDICTION FOR THEFT OF TRADE SECRETS.
(a) In General.--Section 1836 of title 18, United States
Code, is amended to read as follows:
``Sec. 1836. Civil proceedings
``(a) Private Civil Actions.--
``(1) In general.--A person may bring a civil action under
this subsection if the person is aggrieved by--
``(A) a violation of section 1831(a) or 1832(a); or
[[Page S5087]]
``(B) a misappropriation of a trade secret that is related
to or included in a product that is produced for or placed in
interstate or foreign commerce.
``(2) Pleadings.--A complaint filed in a civil action
brought under this subsection shall--
``(A) describe with specificity the reasonable measures
taken to protect the secrecy of the alleged trade secrets in
dispute; and
``(B) include a sworn representation by the party asserting
the claim that the dispute involves either substantial need
for nationwide service of process or misappropriation of
trade secrets from the United States to another country.
``(3) Civil ex parte seizure order.--
``(A) In general.--In a civil action brought under this
subsection, the court may, upon ex parte application and if
the court finds by clear and convincing evidence that issuing
the order is necessary to prevent irreparable harm, issue an
order providing for--
``(i) the seizure of any property (including computers)
used or intended to be used, in any manner or part, to commit
or facilitate the commission of the violation alleged in the
civil action; and
``(ii) the preservation of evidence in the civil action.
``(B) Scope of orders.--An order issued under subparagraph
(A) shall--
``(i) authorize the retention of the seized property for a
reasonably limited period, not to exceed 72 hours under the
initial order, which may be extended by the court after
notice to the affected party and an opportunity to be heard;
``(ii) require that any copies of seized property made by
the requesting party be made at the expense of the requesting
party;
``(iii) require the requesting party to return the seized
property to the party from which the property were seized at
the end of the period authorized under clause (i), including
any extension; and
``(iv) include an appropriate protective order with respect
to discovery and use of any property that has been seized,
which shall provide for appropriate procedures to ensure that
confidential, private, proprietary, or privileged information
contained in the seized property is not improperly disclosed
or used.
``(C) Seizures.--A party injured by a seizure under an
order under this paragraph--
``(i) may bring a civil action against the applicant for
the order; and
``(ii) shall be entitled to recover appropriate relief,
including--
``(I) damages for lost profits, cost of materials, and loss
of good will;
``(II) if the seizure was sought in bad faith, punitive
damages; and
``(III) unless the court finds extenuating circumstances,
to recover a reasonable attorney's fee.
``(4) Remedies.--In a civil action brought under this
subsection, a court may--
``(A) issue--
``(i) an order for appropriate injunctive relief against
any violation described in paragraph (1), including the
actual or threatened misappropriation of trade secrets;
``(ii) if determined appropriate by the court, an order
requiring affirmative actions to be taken to protect a trade
secret; and
``(iii) if the court determines that it would be
unreasonable to prohibit use of a trade secret, an order
requiring payment of a reasonable royalty for any use of the
trade secret;
``(B) award--
``(i) damages for actual loss caused by the
misappropriation of a trade secret; and
``(ii) damages for any unjust enrichment caused by the
misappropriation of the trade secret that is not addressed in
computing damages for actual loss;
``(C) if the trade secret described in paragraph (1)(B) is
willfully or maliciously misappropriated, award exemplary
damages in an amount not more than the amount of the damages
awarded under subparagraph (B); and
``(D) if a claim of misappropriation is made in bad faith,
a motion to terminate an injunction is made or opposed in bad
faith, or a trade secret is willfully and maliciously
misappropriated, award reasonable attorney's fees to the
prevailing party.
``(b) Jurisdiction.--The district courts of the United
States shall have original jurisdiction of civil actions
brought under this section.
``(c) Period of Limitations.--A civil action under this
section may not be commenced later than 3 years after the
date on which the misappropriation is discovered or by the
exercise of reasonable diligence should have been discovered.
For purposes of this subsection, a continuing
misappropriation constitutes a single claim of
misappropriation.''.
(b) Definitions.--Section 1839 of title 18, United States
Code, is amended--
(1) in paragraph (3), by striking ``and'' at the end;
(2) in paragraph (4), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(5) the term `misappropriation' means--
``(A) acquisition of a trade secret of another by a person
who knows or has reason to know that the trade secret was
acquired by improper means; or
``(B) disclosure or use of a trade secret of another
without express or implied consent by a person who--
``(i) used improper means to acquire knowledge of the trade
secret;
``(ii) at the time of disclosure or use, knew or had reason
to know that the knowledge of the trade secret was--
``(I) derived from or through a person who had used
improper means to acquire the trade secret;
``(II) acquired under circumstances giving rise to a duty
to maintain the secrecy of the trade secret or limit the use
of the trade secret; or
``(III) derived from or through a person who owed a duty to
the person seeking relief to maintain the secrecy of the
trade secret or limit the use of the trade secret; or
``(iii) before a material change of the position of the
person, knew or had reason to know that--
``(I) the trade secret was a trade secret; and
``(II) knowledge of the trade secret had been acquired by
accident or mistake; and
``(6) the term `improper means'--
``(A) includes theft, bribery, misrepresentation, breach or
inducement of a breach of a duty to maintain secrecy, or
espionage through electronic or other means; and
``(B) does not include reverse engineering or independent
derivation.''.
(c) Technical and Conforming Amendment.--The table of
sections for chapter 90 of title 18, United States Code, is
amended by striking the item relating to section 1836 and
inserting the following:
``1836. Civil proceedings.''.
(d) Rule of Construction.--Nothing in the amendments made
by this section shall be construed to modify the rule of
construction under section 1838 of title 18, United States
Code, or to preempt any other provision of law.
______
By Mr. REID:
S. 3393. A bill to amend the Internal Revenue Code of 1986 to provide
tax relief to middle-class families; read the first time.
Mr. REID. Mr. President, I ask unanimous consent that the text of the
bill be printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record as follows:
S. 3393
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 ``Middle
Class Tax Cut Act''.
(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 of this Act
is as follows:
Sec. 1. Short title; etc.
TITLE I--TEMPORARY EXTENSION OF TAX RELIEF
Sec. 101. Temporary extension of 2001 tax relief.
Sec. 102. Temporary extension of 2003 tax relief.
Sec. 103. Temporary extension of 2010 tax relief.
Sec. 104. Temporary extension of election to expense certain
depreciable business assets.
TITLE II--ESTATE TAX RELIEF
Sec. 201. Modifications to estate, gift, and generation-skipping
transfer taxes.
TITLE III--ALTERNATIVE MINIMUM TAX RELIEF
Sec. 301. Temporary extension of increased alternative minimum tax
exemption amount.
Sec. 302. Temporary extension of alternative minimum tax relief for
nonrefundable personal credits.
TITLE IV--BUDGETARY EFFECTS
Sec. 401. Budgetary effects.
TITLE I--TEMPORARY EXTENSION OF TAX RELIEF
SEC. 101. TEMPORARY EXTENSION OF 2001 TAX RELIEF.
(a) Temporary Extension.--
(1) In general.--Section 901 of the Economic Growth and Tax
Relief Reconciliation Act of 2001 is amended by striking
``December 31, 2012'' both places it appears and inserting
``December 31, 2013''.
(2) Effective date.--The amendment made by this subsection
shall take effect as if included in the enactment of the
Economic Growth and Tax Relief Reconciliation Act of 2001.
(b) Application to Certain High-income Taxpayers.--
(1) Income tax rates.--
(A) Treatment of 25- and 28- percent rate brackets.--
Paragraph (2) of section 1(i) is amended to read as follows:
``(2) 25- and 28- percent rate brackets.--The tables under
subsections (a), (b), (c), (d), and (e) shall be applied--
``(A) by substituting `25%' for `28%' each place it appears
(before the application of subparagraph (B)), and
``(B) by substituting `28%' for `31%' each place it
appears.''.
(B) 33-percent rate bracket.--Subsection (i) of section 1
is amended by redesignating paragraph (3) as paragraph (4)
and by inserting after paragraph (2) the following new
paragraph:
[[Page S5088]]
``(3) 33-percent rate bracket.--
``(A) In general.--In the case of taxable years beginning
after December 31, 2012--
``(i) the rate of tax under subsections (a), (b), (c), and
(d) on a taxpayer's taxable income in the fourth rate bracket
shall be 33 percent to the extent such income does not exceed
an amount equal to the excess of--
``(I) the applicable amount, over
``(II) the dollar amount at which such bracket begins, and
``(ii) the 36 percent rate of tax under such subsections
shall apply only to the taxpayer's taxable income in such
bracket in excess of the amount to which clause (i) applies.
``(B) Applicable amount.--For purposes of this paragraph,
the term `applicable amount' means the excess of--
``(i) the applicable threshold, over
``(ii) the sum of the following amounts in effect for the
taxable year:
``(I) the basic standard deduction (within the meaning of
section 63(c)(2)), and
``(II) the exemption amount (within the meaning of section
151(d)(1) (or, in the case of subsection (a), 2 such
exemption amounts).
``(C) Applicable threshold.--For purposes of this
paragraph, the term `applicable threshold' means--
``(i) $250,000 in the case of subsection (a),
``(ii) $225,000 in the case of subsection (b),
``(iii) $200,000 in the case of subsections (c), and
``(iv) \1/2\ the amount applicable under clause (i) (after
adjustment, if any, under subparagraph (E)) in the case of
subsection (d).
``(D) Fourth rate bracket.--For purposes of this paragraph,
the term `fourth rate bracket' means the bracket which would
(determined without regard to this paragraph) be the 36-
percent rate bracket.
``(E) Inflation adjustment.--For purposes of this
paragraph, with respect to taxable years beginning in
calendar years after 2012, each of the dollar amounts under
clauses (i), (ii), and (iii) of subparagraph (C) shall be
adjusted in the same manner as under paragraph (1)(C), except
that subsection (f)(3)(B) shall be applied by substituting
`2008' for `1992'.''.
(2) Phaseout of personal exemptions and itemized
deductions.--
(A) Overall limitation on itemized deductions.--Section 68
is amended--
(i) by striking ``the applicable amount'' the first place
it appears in subsection (a) and inserting ``the applicable
threshold in effect under section 1(i)(3)'',
(ii) by striking ``the applicable amount'' in subsection
(a)(1) and inserting ``such applicable threshold'',
(iii) by striking subsection (b) and redesignating
subsections (c), (d), and (e) as subsections (b), (c), and
(d), respectively, and
(iv) by striking subsections (f) and (g).
(B) Phaseout of deductions for personal exemptions.--
(i) In general.--Paragraph (3) of section 151(d) is
amended--
(I) by striking ``the threshold amount'' in subparagraphs
(A) and (B) and inserting ``the applicable threshold in
effect under section 1(i)(3)'',
(II) by striking subparagraph (C) and redesignating
subparagraph (D) as subparagraph (C), and
(III) by striking subparagraphs (E) and (F).
(ii) Conforming amendments.--Paragraph (4) of section
151(d) is amended--
(I) by striking subparagraph (B),
(II) by redesignating clauses (i) and (ii) of subparagraph
(A) as subparagraphs (A) and (B), respectively, and by
indenting such subparagraphs (as so redesignated)
accordingly, and
(III) by striking all that precedes ``in a calendar year
after 1989,'' and inserting the following:
``(4) Inflation adjustment.--In the case of any taxable
year beginning''.
(c) Effective Date.--Except as otherwise provided, the
amendments made by this section shall apply to taxable years
beginning after December 31, 2012.
(d) Application of EGTRRA Sunset.--Each amendment made by
subsection (b) shall be subject to title IX of the Economic
Growth and Tax Relief Reconciliation Act of 2001 to the same
extent and in the same manner as if such amendment was
included in title I of such Act.
SEC. 102. TEMPORARY EXTENSION OF 2003 TAX RELIEF.
(a) Extension.--
(1) In general.--Section 303 of the Jobs and Growth Tax
Relief Reconciliation Act of 2003 is amended by striking
``December 31, 2012'' and inserting ``December 31, 2013''.
(2) Effective date.--The amendment made by this subsection
shall take effect as if included in the enactment of the Jobs
and Growth Tax Relief Reconciliation Act of 2003.
(b) 20-percent Capital Gains Rate for Certain High Income
Individuals.--
(1) In general.--Paragraph (1) of section 1(h) is amended
by striking subparagraph (C), by redesignating subparagraphs
(D) and (E) as subparagraphs (E) and (F) and by inserting
after subparagraph (B) the following new subparagraphs:
``(C) 15 percent of the lesser of--
``(i) so much of the adjusted net capital gain (or, if
less, taxable income) as exceeds the amount on which a tax is
determined under subparagraph (B), or
``(ii) the excess (if any) of--
``(I) the amount of taxable income which would (without
regard to this paragraph) be taxed at a rate below 36
percent, over
``(II) the sum of the amounts on which a tax is determined
under subparagraphs (A) and (B),
``(D) 20 percent of the adjusted net capital gain (or, if
less, taxable income) in excess of the sum of the amounts on
which tax is determined under subparagraphs (B) and (C),''.
(2) Minimum tax.--Paragraph (3) of section 55(b) is amended
by striking subparagraph (C), by redesignating subparagraph
(D) as subparagraph (E), and by inserting after subparagraph
(B) the following new subparagraphs:
``(C) 15 percent of the lesser of--
``(i) so much of the adjusted net capital gain (or, if
less, taxable excess) as exceeds the amount on which tax is
determined under subparagraph (B), or
``(ii) the excess described in section 1(h)(1)(C)(ii), plus
``(D) 20 percent of the adjusted net capital gain (or, if
less, taxable excess) in excess of the sum of the amounts on
which tax is determined under subparagraphs (B) and (C),
plus''.
(c) Conforming Amendments.--
(1) The following provisions are each amended by striking
``15 percent'' and inserting ``20 percent'':
(A) Section 531.
(B) Section 541.
(C) Section 1445(e)(1).
(D) The second sentence of section 7518(g)(6)(A).
(E) Section 53511(f)(2) of title 46, United States Code.
(2) Sections 1(h)(1)(B) and 55(b)(3)(B) are each amended by
striking ``5 percent (0 percent in the case of taxable years
beginning after 2007)'' and inserting ``0 percent''.
(3) Section 1445(e)(6) is amended by striking ``15 percent
(20 percent in the case of taxable years beginning after
December 31, 2010)'' and inserting ``20 percent''.
(d) Effective Dates.--
(1) In general.--Except as otherwise provided, the
amendments made by subsections (b) and (c) shall apply to
taxable years beginning after December 31, 2012.
(2) Withholding.--The amendments made by paragraphs (1)(C)
and (3) of subsection (c) shall apply to amounts paid on or
after January 1, 2013.
(e) Application of JGTRRA Sunset.--Each amendment made by
subsections (b) and (c) shall be subject to section 303 of
the Jobs and Growth Tax Relief Reconciliation Act of 2003 to
the same extent and in the same manner as if such amendment
was included in title III of such Act.
SEC. 103. TEMPORARY EXTENSION OF 2010 TAX RELIEF.
(a) American Opportunity Tax Credit.--
(1) In general.--Section 25A(i) is amended by striking ``or
2012'' and inserting ``2012, or 2013''.
(2) Treatment of possessions.--Section 1004(c)(1) of
division B of the American Recovery and Reinvestment Tax Act
of 2009 is amended by striking ``and 2012'' each place it
appears and inserting ``2012, and 2013''.
(b) Child Tax Credit.--Section 24(d)(4) is amended--
(1) by striking ``and 2012'' in the heading and inserting
``2012, and 2013'', and
(2) by striking ``or 2012'' and inserting ``2012, or
2013''.
(c) Earned Income Tax Credit.--Section 32(b)(3) is
amended--
(1) by striking ``and 2012'' in the heading and inserting
``2012, and 2013'', and
(2) by striking ``or 2012'' and inserting ``2012, or
2013''.
(d) Temporary Extension of Rule Disregarding Refunds in the
Administration of Federal Programs and Federally Assisted
Programs.--Subsection (b) of section 6409 is amended by
striking ``December 31, 2012'' and inserting ``December 31,
2013''.
(e) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after December 31, 2012.
(2) Rule disregarding refunds in the administration of
certain programs.--The amendment made by subsection (d) shall
apply to amounts received after December 31, 2012.
SEC. 104. TEMPORARY EXTENSION OF ELECTION TO EXPENSE CERTAIN
DEPRECIABLE BUSINESS ASSETS.
(a) In General.--
(1) Dollar limitation.--Section 179(b)(1) is amended--
(A) by striking ``and'' at the end of subparagraph (C),
(B) by redesignating subparagraph (D) as subparagraph (E),
(C) by inserting after subparagraph (C) the following new
subparagraph:
``(D) $250,000 in the case of taxable years beginning in
2013, and'', and
(D) in subparagraph (E), as so redesignated, by striking
``2012'' and inserting ``2013''.
(2) Reduction in limitation.--Section 179(b)(2) is
amended--
(A) by striking ``and'' at the end of subparagraph (C),
(B) by redesignating subparagraph (D) as subparagraph (E),
(C) by inserting after subparagraph (C) the following new
subparagraph:
``(D) $800,000 in the case of taxable years beginning in
2013, and'', and
(D) in subparagraph (E), as so redesignated, by striking
``2012'' and inserting ``2013''.
(b) Computer Software.--Section 179(d)(1)(A)(ii) is amended
by striking ``2013'' and inserting ``2014''.
[[Page S5089]]
(c) Election.--Section 179(c)(2) is amended by striking
``2013'' and inserting ``2014''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2012.
TITLE II--ESTATE TAX RELIEF
SEC. 201. MODIFICATIONS TO ESTATE, GIFT, AND GENERATION-
SKIPPING TRANSFER TAXES.
(a) Modifications to Estate Tax.--
(1) Exclusion amount.--Paragraph (3) of section 2010(c) is
amended to read as follows:
``(3) Basic exclusion amount.--For purposes of this
section, the basic exclusion amount is $3,500,000.''.
(2) Maximum estate tax rate.--The table in subsection (c)
of section 2001 is amended by striking ``Over $500,000'' and
all that follows and inserting the following:
$155,800, plus 37 percent of the excess of such amount over $500,000...
$248,300, plus 39 percent of the excess of such amount over $750,000...
$345,800, plus 41 percent of the excess of such amount over $1,000,000.
$448,300, plus 43 percent of the excess of such amount over $1,250,000.
$555,800, plus 45 percent of the excess of such amount over ...........
$1,500,000.''.
(b) Modifications of Estate and Gift Taxes to Reflect
Differences in Credit Resulting From Different Tax Rates and
Exclusion Amounts.--
(1) Changing tax rates.--Notwithstanding section 304 of the
Tax Relief, Unemployment Insurance Reauthorization, and Job
Creation Act of 2010, section 901 of the Economic Growth and
Tax Relief Reconciliation Act of 2001 shall not apply to the
amendments made by section 302(d) of the Tax Relief,
Unemployment Insurance Reauthorization, and Job Creation Act
of 2010.
(2) Decreasing exclusions.--
(A) Estate tax adjustment.--Section 2001 is amended by
adding at the end the following new subsection:
``(h) Adjustment to Reflect Changes in Exclusion Amount.--
``(1) In general.--If, with respect to any gift to which
subsection (b)(2) applies, the applicable exclusion amount in
effect at the time of the decedent's death is less than such
amount in effect at the time such gift is made by the
decedent, the amount of tax computed under subsection (b)
shall be reduced by the amount of tax which would have been
payable under chapter 12 at the time of the gift if the
applicable exclusion amount in effect at such time had been
the applicable exclusion amount in effect at the time of the
decedent's death and the modifications described in
subsection (g) had been applicable at the time of such gifts.
``(2) Limitation.--The aggregate amount of gifts made in
any calendar year to which the reduction under paragraph (1)
applies shall not exceed the excess of--
``(A) the applicable exclusion amount in effect for such
calendar year, over
``(B) the applicable exclusion amount in effect at the time
of the decedent's death.
``(3) Applicable exclusion amount.--The term `applicable
exclusion amount' means, with respect to any period, the
amount determined under section 2010(c) for such period,
except that in the case of any period for which such amount
includes the deceased spousal unused exclusion amount (as
defined in section 2010(c)(4)), such term shall mean the
basic exclusion amount (as defined under section 2010(c)(3),
as in effect for such period).''.
(B) Gift tax adjustment.--Section 2502 is amended by adding
at the end the following new subsection:
``(d) Adjustment to Reflect Changes in Exclusion Amount.--
``(1) In general.--If the taxpayer made a taxable gift in
an applicable preceding calendar period, the amount of tax
computed under subsection (a) shall be reduced by the amount
of tax which would have been payable under chapter 12 for
such applicable preceding calendar period if the applicable
exclusion amount in effect for such preceding calendar period
had been the applicable exclusion amount in effect for the
calendar year for which the tax is being computed and the
modifications described in subsection (g) had been applicable
for such preceding calendar period.
``(2) Limitation.--The aggregate amount of gifts made in
any applicable preceding calendar period to which the
reduction under paragraph (1) applies shall not exceed the
excess of--
``(A) the applicable exclusion amount for such preceding
calendar period, over
``(B) the applicable exclusion amount for the calendar year
for which the tax is being computed.
``(3) Applicable preceding calendar year period.--The term
`applicable preceding calendar year period' means any
preceding calendar year period in which the applicable
exclusion amount exceeded the applicable exclusion amount for
the calendar year for which the tax is being computed.
``(4) Applicable exclusion amount.--The term `applicable
exclusion amount' means, with respect to any period, the
amount determined under section 2010(c) for such period,
except that in the case of any period for which such amount
includes the deceased spousal unused exclusion amount (as
defined in section 2010(c)(4)), such term shall mean the
basic exclusion amount (as defined under section 2010(c)(3),
as in effect for such period).''.
(c) Effective Date.--The amendments made by this section
shall apply to estates of decedents dying, and generation-
skipping transfers and gifts made, after December 31, 2012.
(d) Application of EGTRRA Sunset.--Section 901 of the
Economic Growth and Tax Relief Reconciliation Act shall apply
to the amendments made by subsection (a).
TITLE III--ALTERNATIVE MINIMUM TAX RELIEF
SEC. 301. TEMPORARY EXTENSION OF INCREASED ALTERNATIVE
MINIMUM TAX EXEMPTION AMOUNT.
(a) In General.--Paragraph (1) of section 55(d) is
amended--
(1) by striking ``$72,450'' and all that follows through
``2011'' in subparagraph (A) and inserting ``$78,750 in the
case of taxable years beginning in 2012'', and
(2) by striking ``$47,450'' and all that follows through
``2011'' in subparagraph (B) and inserting ``$50,600 in the
case of taxable years beginning in 2012''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2011.
SEC. 302. TEMPORARY EXTENSION OF ALTERNATIVE MINIMUM TAX
RELIEF FOR NONREFUNDABLE PERSONAL CREDITS.
(a) In General.--Paragraph (2) of section 26(a) is
amended--
(1) by striking ``or 2011'' and inserting ``2011, or
2012'', and
(2) by striking ``2011'' in the heading thereof and
inserting ``2012''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2011.
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).
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