[Congressional Record Volume 158, Number 172 (Tuesday, January 1, 2013)]
[House]
[Pages H7531-H7559]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
AMERICAN TAXPAYER RELIEF ACT OF 2012
Mr. DREIER, from the Committee on Rules, submitted a privileged
report (Rept. No. 112-741) on the resolution (H. Res. 844) providing
for consideration of the bill (H.R. 8) to extend certain tax relief
provisions enacted in 2001 and 2003, and to provide for expedited
consideration of a bill providing for comprehensive tax reform, and for
other purposes, which was referred to the House Calendar and ordered to
be printed.
Mr. DREIER. Mr. Speaker, by direction of the Committee on Rules, I
call up House Resolution 844 and ask for its immediate consideration.
The Clerk read the resolution, as follows:
H. Res. 844
Resolved, That upon the adoption of this resolution it
shall be in order to take from the Speaker's table the bill
(H.R. 8) to extend certain tax relief provisions enacted in
2001 and 2003, and to provide for expedited consideration of
a bill providing for comprehensive tax reform, and for other
puropses, with the Senate amendments thereto, and to consider
in the House, without intervention of any point of order, a
single motion offered by the chair of the Committee on Ways
and Means or his designee that the House concur in the Senate
amendments. The Senate amendments and the motion shall be
considered as read. The motion shall be debatable for one
hour equally divided and controlled by the chair and ranking
minority member of the Committee on Ways and Means. The
previous question shall be considered as ordered on the
motion to its adoption without intervening motion or demand
for division of the question.
The SPEAKER pro tempore. The gentleman from California is recognized
for 1 hour.
Mr. DREIER. Mr. Speaker, I am happy to yield the customary 30 minutes
to my very good friend from Rochester, New York, the distinguished
ranking member of the Committee on Rules, Ms. Slaughter, pending which
I yield myself such time as I may consume. All time that I will be
yielding will be for debate purposes only.
(Mr. DREIER asked and was given permission to revise and extend his
remarks.)
Mr. DREIER. Mr. Speaker, the measure before us and the process that
brought us here has been the source of a great deal of understandable
consternation. Virtually no one believes that what we have before us
tonight is a long-term solution to this problem, and most have bemoaned
the fact that we have stretched the far reaches of our deadline to
actually get here.
Now, I'm privileged to be in my fourth decade as a Member of this
body. And it's true, I don't believe that in those decades I've ever
actually spent New Year's Eve and/or New Year's Day in this building,
but working up to a deadline is hardly unprecedented in this
institution.
As we all know, H.R. 8, we are concurring in the Senate amendment
with this rule, but H.R. 8 passed last August 1, went over to the other
body, and it
[[Page H7532]]
passed by a ratio of 256-171 last August 1. And it went over there and
we've been waiting, so it's now come back to us. It is before us, and I
will say that we are addressing this right up to the deadline.
But I can remember, as I know colleagues of mine on both sides of the
aisle can recall, there have been many deadlines that have approached,
and it's a fact of life when you have deadlines.
I can recall very well, in school I had a great international
relations professor in college, and at the beginning of the class he
would give us these geographic spots around the world. Back then, we
didn't have Google and we had to spend time finding these very, very
obscure spots. And almost every time, when did we do it? Just as we
were approaching that deadline. And Professor Rood understood that
extraordinarily well, and he laughed as we were struggling at the end
to do that.
Similarly, this notion of approaching a deadline and trying to deal
with an issue is something that happens in this institution, and this
is another example where that's the case.
The issues that we are attempting to address tonight with this vote
are as important as they are challenging. The range of ideas that have
been proposed as solutions are as disparate as they are numerous. This
body, like our Nation, has been deeply divided over how to proceed.
Under these circumstances, an agreement has been extraordinarily
elusive. We all know that. The bill before us is not the grand bargain
that I, and I think most of my colleagues, had hoped that we would have
been able to achieve. But what we're doing this evening, Mr. Speaker,
is a very essential bridge to what I hope will be a comprehensive,
long-term solution.
Mr. Speaker, it will bring us back from the edge of the fiscal cliff.
And I know, just hours ago, at midnight, we did, technically, go over
that bridge, but we are working hard to pull ourselves back from that
cliff. We went over the cliff and we're pulling ourselves back, and we
are ensuring that taxes are not increased on 99 percent of our fellow
Americans.
I know that I'm not alone when I say that I had high hopes for a
package of sweeping tax reform, and something that I think has to be
acknowledged, and I'm very saddened that it's not included in here, but
entitlement reform. We all know, and you know very well, Mr. Speaker,
that entitlement reform is the only way that we are going to
successfully get our arms around this massive 16--now I guess it's
$16.25 trillion national debt that is there. As Willie Sutton said, he
robbed banks because that's where the money is. We know that
entitlement reform is going to be essential if we are going to be able
to get our fiscal house in order, and I'm saddened that this is not
part of it.
We have repeatedly passed out of the House of Representatives
meaningful, meaningful reform in a number of these areas. It's truly
unfortunate that our friends in the other body have not engaged, thus
far, in these efforts. But, Mr. Speaker, the legislation that is before
us, which again, as we all know, passed at 2 o'clock this morning,
earlier today in the Senate, will avert the economic crisis and set the
stage for the very hard work that must be done in the coming weeks.
Now, Mr. Speaker Pro Tem, you and I won't be here for that work to
take place, but I know that you share my view that our colleagues have
a unique opportunity, as the 113th Congress begins its work at noon on
Thursday, to take on this challenge. And I'm one who actually believes
that we have a unique opportunity because of the fact that there is
divided government, because we have a President of one party who
regularly talks about the need for this kind of reform--and I
congratulate him for that--and we have a House of Representatives, the
people's House, the body that, under article I, section 7 of the U.S.
Constitution, has the responsibility of dealing with tax issues, that
this body is of the other party, our party, Mr. Speaker.
In light of that, I think that, since there is a consensus on the
need to tackle these issues, it can be done in a bipartisan way. I hope
very much that that will happen.
The way for us to take that first step is, of course, to pass this
rule with what I am confident will be bipartisan support. And I
appreciate the very kind words of the distinguished ranking member, my
friend from Rochester, Ms. Slaughter, upstairs in supporting this
effort that we have. And then at the end of the day, once we go into
the debate on concurring in the Senate amendment, which is what this
rule will call for us to do, that we'll again have strong bipartisan
support for that measure.
With that, Mr. Speaker, at this juncture, I reserve the balance of my
time.
Ms. SLAUGHTER. Mr. Speaker, I certainly thank my colleague for
yielding me the customary 30 minutes and yield myself such time as I
may consume.
Mr. Speaker, I want to begin by saying to my colleague, Mr. Dreier,
we've served together here for many years on the Rules Committee. I
think that his knowledge of both the Rules Committee and its functions
and the rules of the House are unsurpassed, and I think he will be very
greatly missed.
{time} 2050
I want to wish him the very best in his new endeavors in the rest of
his life. Nothing but happiness and joy. And thank you. I feel I've
learned a great deal from you, David. Thank you for that.
Mr. Speaker, the legislation before me, as my colleague said, is no
great victory. It's only a partial answer to a much larger problem, and
it sets our Nation up for another fiscal showdown in mere months. As we
vote, let every Member of this Chamber reflect on the dysfunctional
legislative process and the irresponsible leadership that brought us
here today, and the need for the majority to come back to the
bargaining table in good faith as our work continues. And I share Mr.
Dreier's hope that from now on we will put this all behind us and that
this next term will be a bipartisan term.
Let history show that the fiscal cliff and the dire economic
consequences that would come with it were the deliberate creation of
this House. Because of hyperpartisan actions taken by the majority, the
body has pushed our Nation closer to a self-created economic recession
and the greatest displacement of workers that the Nation has known
since 1929.
The idea behind the fiscal cliff was that the potential for a self-
inflicted wound would force Congress to address the growing deficit and
debt. Yet from the beginning, the plan was flawed. Over the last 10
years, our deficit has ballooned because of the cost of two wars and
massive unpaid-for tax cuts. Yet discussion over the cost of war--
conflicts that have cost the lives of thousands of Americans and
forever changed the face of American families--has been almost
nonexistent. At the same time, the majority's desire to protect tax
cuts for millionaires and billionaires quickly hardened into
intransigence and has led us to where we are today. Just a week ago
today, it looked as though Congress was close to a solution, until the
House majority walked away.
Instead of seizing an historic opportunity for compromise, the
majority introduced a so-called ``Plan B,'' which quickly morphed into
Plan C before being scrapped altogether and leaving us with almost no
time to avert the fiscal cliff. By making tax cuts for millionaires and
billionaires their biggest priority, the majority not only endangered
our economy but they led the House through a legislative process that
violated any sense of regular order and transparency. Indeed, as my
colleagues and I sat in the Rules Committee last week, the legislation
we were considering was changing by the minute, leaving us to guess at
what would actually be included in any bill that required our vote.
Sadly, such dysfunctional governing comes as little surprise. For the
past 2 years, the majority has led with a toxic combination of
extremism and hyperpartisanship that has resulted in the 112th Congress
being the least productive in history. During the summer of 2011, the
majority threw our Nation into crisis when they took our economy
hostage and threatened to default on our Nation's debt. This dangerous
and irresponsible approach rattled investors around the world and led
to the first-ever downgrade of our Nation's credit. In addition, over
the last 2 years, the majority has voted more than 33 times to repeal
the historic Affordable Care Act, despite knowing full
[[Page H7533]]
well that the repeal votes would never be signed into law because the
Senate would not do that bill. In so doing, they took up valuable time
from other legislative priorities. And CBS News reports that these
votes consistently trying to repeal health care, Mr. Speaker, cost the
American taxpayer almost $50 million.
For over a year and a half, this type of irresponsible and
unproductive governing failed to provide any solutions to the American
people. And coming out of the November elections, our mandate was
clear. The American people demanded an end to the political theater and
the dangerous legislative games. They demanded that we finally get to
work and solve the looming fiscal cliff in a balanced, responsible, and
bipartisan way.
In the middle of last July, all of the ranking committee members in
the House of Representatives sent a letter to the Speaker asking that
we begin in July to find a solution to the fiscal cliff and
sequestration. We called for a bipartisan approach and something we
could get finished before the August recess so that we could spare the
American people and most other people in the world and financial
markets the worry that we have put them through. We got our answer
tonight.
So, unfortunately, today, what we are doing here does not give the
American people a solution worthy of their full approval--and I'm sure
we don't have it. The legislation before us fails to seriously address
the deficit and debt, protects too many wealthy Americans, and sets the
Nation up for another round of high-stakes negotiations. However, what
we do have before us is a product that can avert the worst of the
fiscal cliff and begin the process of balancing the budget and
returning fairness, we hope, to the Tax Code.
Under today's legislation, millions of Americans will be spared from
a tax increase, and valuable tax extensions for middle-class families
and students will remain in place. In addition, today's legislation
extends unemployment insurance for millions of Americans struggling to
find work.
In closing, this legislation is far from perfect, and the process
that has led us here is an utter disgrace. Yet in this time of crisis
we must act first and foremost to try to protect the American economy.
And today's legislation will do that. In the coming weeks, we must
continue the hard work of creating a fair Tax Code and ensuring we
reduce our deficit in a balanced, responsible, and bipartisan way. And
as we do, I urge my fellow Members to avoid brinksmanship and partisan
games and to come to the table in good faith on behalf of all the
people who sent us here and put their faith in us.
I reserve the balance of my time.
Mr. DREIER. I yield myself such time as I may consume to first
express my appreciation to my friend from Rochester for her very
generous and kind remarks and to, secondly, say that I would like to
associate myself not necessarily with those kind remarks but I would
like to associate myself with some of what she said. I, obviously,
can't associate myself with all of those remarks, as you know, Mr.
Speaker. But I will say that as we look at our quest for a bipartisan
solution for this problem, I think that we have, with the action that
we're about to take here, taken a very important first step.
I'm reminded of the fact that the author of the U.S. Constitution,
James Madison, famously described the process of lawmaking as an ugly,
messy, difficult process. That's by design, Mr. Speaker. And it's by
design because if we look back at our Framers, they were fleeing the
tyranny of King George. Why? Because that maniac was making unilateral
decisions that played a role in ruining the lives of his fellow
countrymen. So the Framers came forward and, in structuring our
government with the three branches, they wanted to ensure that no
individual got too much power. And when it comes to lawmaking, putting
into place this great compromise, the Connecticut Compromise, it
established a bicameral legislative structure.
And so I was talking one time, Mr. Speaker, with the first woman--now
there are two--but the first woman to serve as a president of any of
the 54 countries on the continent of Africa. She gave a brilliant
speech for a joint session of Congress. She's the President of Liberia,
Ellen Johnson Sirleaf. And I was talking to her about the legislative
process. I was sitting in Monrovia, Liberia, and I said to her, James
Madison, by design, said that this is to be an ugly, messy, difficult
process. And I'll never forget, Mr. Speaker, how President Ellen
Johnson Sirleaf looked to me and said, David, you've forgotten one
thing. Yes, it is an ugly, messy, difficult process. But you have to
add the fact that it works.
And as difficult as it has been to get to this point, we need to
realize that it's an ugly, messy, difficult process. While this is a
very small step, it's a first step in our quest for tax reform and
entitlement reform which will get us back on a path towards economic
growth and the kind of prosperity that we want and that the American
people deserve. And it will create a greater degree of certainty. We
all know that uncertainty is the enemy of prosperity. So making
permanent these tax cuts for 99 percent of the American people is a
very important step in our quest to ensure that there is that degree of
certainty.
{time} 2100
So, Mr. Speaker, I will say again that I do associate myself with
some of the things that my friend from Rochester said, and I do, again,
appreciate her very kind remarks.
With that, I reserve the balance of my time.
Ms. SLAUGHTER. Mr. Speaker, I am pleased to yield 2 minutes to the
gentleman from Colorado (Mr. Polis), a member of the Committee on
Rules.
Mr. POLIS. I want to again begin by acknowledging the long service of
our chair in the House. This could very well be the last time we have
the opportunity to debate here on the House floor, and I certainly wish
him well.
I also want to express my gratitude to the great patriotism of my
colleagues, both Democratic and Republican, and particularly those in
their lame-duck period who have chosen to stay around and work right up
to the final hour of their contract with the American people--in many
cases without an office, in many cases without a home. We see them
roaming the halls here of the Capitol. I personally, regardless of how
they come down on this particular issue, applaud their patriotism in
fulfilling the will of their voters for the 112th Congress.
What we have before us, and I think Members on both sides agree,
certainly has some good aspects and some aspects that need to be
approved. The question is on what side is there more weight. I think
it's important to talk about what this bill does and what it doesn't
do.
First, briefly, what it doesn't do. My own Senator from Colorado,
Michael Bennet, was one of the small group of Senators who voted
against this because he, like myself, is an advocate of a comprehensive
budget solution: restoring fiscal integrity to our country along the
parameters of what the supercommittee attempted but failed to
accomplish, along the parameters of what the Bowles-Simpson Commission,
the Gang of Eight have attempted to accomplish, which we know could
only be accomplished in a bipartisan manner but is so important to the
future of our country to balance the budget and restore the fiscal
integrity.
This bill is not that bill. However, what this bill does is it
ensures that the American people will not have the largest tax increase
in the history of our country tomorrow: $2,000 a year out of the pocket
of families making $80,000 a year; almost $4,000 a year out of the
pocket of families making $150,000 a year.
What does that mean to families? It might be the money that helps
them stay above water on their mortgage. It might be the money that
allows their child to attend college.
Beyond the ramifications at the family level, there's the aggregate
effect across our economy. When families don't have that money, they're
not able to spend that money to buy products, buy products that need to
be produced, have jobs in America and create jobs.
I think we need to make sure that we don't raise taxes on the
American people. The best way to do that is by supporting this bill.
Anybody opposing this bill is supporting the largest tax increase in
the history of the country.
I call upon my colleagues, Democratic and Republican, to remove this
[[Page H7534]]
tax burden from the middle class and ensure that taxes don't go up
tomorrow. I encourage my colleagues to support the rule and the bill.
Mr. DREIER. Mr. Speaker, I'd inquire of my friend how many speakers
she has remaining on her side.
Ms. SLAUGHTER. I believe I have three, Mr. Speaker.
Mr. DREIER. Three speakers. Well, I anxiously look forward to their
remarks.
With that, I reserve the balance of my time.
Ms. SLAUGHTER. I am pleased to yield 1 minute to the gentlewoman from
Texas (Ms. Jackson Lee).
Ms. JACKSON LEE of Texas. I'll add my appreciation to the service of
Mr. Dreier as well.
And ask the question: Why are we here? I know why I'm here--to
protect working Americans, the vulnerable and middle class. The reason
why we're in this position is because at the end of the Clinton
administration we had $5 trillion in surplus, and it went out the
window with Bush tax cuts and wars that we could not pay for.
So I stand here today to say that working class and the vulnerable
will have their unemployment insurance and earned income tax and cuts
in their taxes that they really need, but we still have work to do. I
want to make sure that we restore some very serious cuts that impact on
the health care of Americans.
We have work to do on the sequestration. Our fight is the same fight
that Richard Trumka has with the AFL-CIO. We're here to make sure that
the working Americans, the most vulnerable, do not pay for the rich
getting richer. We're going to fight against Social Security cuts and
Medicare cuts and Medicaid cuts.
What we have to do today is to make sure that we can go forward, but
we should not do it without the understanding that there's some
restoration work and there's some fight work in the sequestration. It
will not be done on the backs of those who cannot pay. But we will work
together as Americans to make things better. That is what I hope we
will see as we go forward.
I want to thank the Senate for putting that bill forward that now we
have to address.
Ms. SLAUGHTER. Mr. Speaker, when I spoke earlier, I referred to a
letter that we had sent to the Speaker, and I would like to insert that
in the Record.
July 25, 2012.
Dear Mr. Speaker and Chairs of the Committees: As the
senior Democratic Members of the Committees of the House, we
call upon the Republican Leadership and the Chairs of our
respective committees to begin immediate negotiations with
Democrats on replacing the scheduled 2013 sequester with a
balanced deficit reduction plan. We all agree that a
sequester starting in January, 2013 is not in the country's
best interest and is not the best way to assure responsible
deficit reduction. The American people want us to work
together to avoid unnecessary economic uncertainty at this
crucial time in our recovery. Failure to reach an agreement
would have devastating consequences for our economy, small
business and the middle class.
The looming possibility of a January, 2013 sequester is
already creating uncertainty in our economy. Working together
and in good faith, Democrats and Republicans can negotiate an
alternative to the defense and non-defense discretionary
sequester as well as the mandatory sequester for fiscal year
2013. We are confident that we can identify revenue sources
and prioritize investments in a bipartisan fashion to avoid
the sequester while achieving our deficit reduction goals.
We look forward to hearing from you and sitting down to
negotiate an alternative to the sequester. We strongly
recommend that this bipartisan process begin before the
August recess so that the American people can be reassured
before September 30 that the sequester will not take effect.
Best regards,
Collin C. Peterson, Ranking Member, House Committee on
Agriculture; Norman D. Dicks, Ranking Member, House
Committee on Appropriations; Adam Smith, Ranking
Member, House Armed Services Committee; Chris Van
Hollen, Ranking Member, House Committee on the Budget;
George Miller, Ranking Member, House Committee on
Education & the Workforce; Henry Waxman, Ranking
Member, House Energy & Commerce Committee; Linda
Sanchez, Ranking Member, House Committee on Ethics;
Barney Frank, Ranking Member, House Committee on
Financial Services; Howard Berman, Ranking Member,
House Committee on Foreign Affairs; Bennie G. Thompson,
Ranking Member, House Committee on Homeland Security;
Robert A. Brady, Ranking Member, House Committee on
Administration; John Conyers, Ranking Member, House
Committee on the Judiciary; Edward Markey, Ranking
Member, House Committee on Natural Resources; Elijah
Cummings, Ranking Member, House Committee on Oversight
and Government Reform; Louise Slaughter, Ranking
Member, House Committee on Rules; Eddie Bernice
Johnson, Ranking Member, House Committee on Science,
Space, & Technology; Nydia M. Velazquez, Ranking
Member, House Committee on Small Business; Nick Rahall,
Ranking Member, House Committee on Transportation &
Infrastructure; Bob Filner, Ranking Member, House
Committee on Veterans' Affairs; Sander Levin, Ranking
Member, House Committee on Ways and Means; C.A. Dutch
Ruppersberger, Ranking Member, Permanent Select
Committee on Intelligence.
I am happy to yield 1 minute to the gentlewoman from Ohio (Ms.
Kaptur).
Ms. KAPTUR. I thank the ranking member for yielding.
Tonight, the American people's hopes are for this Congress to pass a
bipartisan bill to meet our Nation's financial obligations to give some
certainty to our financial markets and to keep our economy growing
through new job creation. This is a great victory for the middle class
whose taxes will not go up tomorrow.
In places like Ohio, what does it mean? It means doctors who treat
Medicare patients are going to receive fair reimbursement and those
seniors won't be turned away. It means that unemployment compensation
will be extended to the unemployed, who remain in places like Norwalk,
Ohio, and Lima and Medina and Elyria, people who haven't gone back to
work yet in manufacturing centers across States like Ohio.
This House surely should follow the lead of the Senate, which passed
this bill by 89-8 last night. This is the time for the House to act. I
rise in strong support of the rule and strong support of the bill.
Let's do what the American people have been waiting for for months.
General Leave
Mr. DREIER. Mr. Speaker, I'd like to ask unanimous consent that all
Members have--traditionally, I would ask for 5 legislative days in
which to revise and extend their remarks on the measure before us, but
since the new Congress is going to be sworn in at noon on Thursday, I
ask that all the legislative days remaining in the 112th Congress be
provided for Members to revise and extend their remarks on this
resolution before us.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from California?
There was no objection.
Mr. DREIER. With that, I reserve the balance of my time.
Ms. SLAUGHTER. Mr. Speaker, I yield 1 minute to the gentleman from
Georgia (Mr. Scott).
Mr. DAVID SCOTT of Georgia. Ladies and gentlemen of the Congress and
United States of America, we stand here today and we're witnessing
something that there has been a great hunger among the American people
for, and that is to see, finally, Democrats and Republicans working
together for the good of the United States. We're going to have that
today. We're going to have a bill--all may not vote for it, but I think
what is important here is that this is a product of a true compromise,
with Republicans and with Democrats putting the United States of
America foremost.
I think we ought to have a tip of the hat to President Barack Obama,
I think to Leader McConnell in the Senate, and certainly to our Vice
President, Joe Biden, and to the leadership of Nancy Pelosi, Steny
Hoyer, and Jim Clyburn over on our side. I know that our Republican
friends have had a tussle here, but our tip of the hat to you as well,
and certainly to my friend, David Dreier, who is in his ending time as
chairman of the Rules Committee. Good luck, my friend.
Ms. SLAUGHTER. Mr. Speaker, I'm pleased to yield 1 minute to the
gentleman from Tennessee (Mr. Cohen).
Mr. COHEN. I appreciate the moment.
This has been a very interesting couple of days, ones that I would
normally have spent with friends in Memphis, drinking champagne and
looking forward to the new year.
It's been an honor serving with you, Mr. Dreier. You are an
outstanding
[[Page H7535]]
Member, as Ms. Slaughter said. There are lots of people in the other
aisle--Mr. Coble behind you--fine Republicans whom I'm friends with and
think the world of, but I'm just happy this day has ended the way it
is, kind of a Tiny Tim world. It's just good the way it ended up.
Somehow or another, whether it be the fates or Speaker Boehner's
abilities to work things from magic, we're going to end up not falling
off the fiscal cliff, and I think that's wonderful.
So I thank Ms. Slaughter for the time, and I thank Speaker Boehner
for whatever he's done to produce what I expect will be a positive
result for the American people.
Mr. DREIER. Mr. Speaker, I'll continue to reserve the balance of my
time.
Ms. SLAUGHTER. Mr. Speaker, if I could inform my colleague, I have no
further requests for time and I'm prepared to close if he has no
further speakers.
Mr. Speaker, failure to avert the fiscal cliff could lead the Nation
back into an economic recession and create the largest displacement of
workers in the Nation's history. The dangers are avoidable, and it is
our solemn obligation to avert the fiscal cliff and protect the
American people.
{time} 2110
As I said earlier, today's legislation is far from perfect; but in
this time of crisis, legislators must act. In the months to come, we
will face more fiscal challenges and be asked to act again. When that
time comes, I hope that we will avoid the brinksmanship that we have
seen to date and come to the table in good faith. If we do, I'm
confident that we can finish our work and provide solutions for a
better future for America.
I yield back the balance of my time.
Mr. DREIER. Mr. Speaker, with that, I yield myself the balance of the
time.
Mr. Speaker, on the 29th of February of this year, I stood here in
this well and announced that I was leaving Congress. And when I did
that, I said that this institution is as great as it has ever been. The
reason I said that is that Congress is a reflection of the people; and
it means that when America is divided, Congress is divided. That
doesn't mean that we, as leaders, Mr. Speaker, can't work to bridge
this divide.
While political division is a current reality, it is not our fate. I
believe that, as an institution, Congress can and must forge new
consensus and restore hope and optimism for future generations.
Optimism, Mr. Speaker, as you know very well, is what we, as Americans,
are all about. And I've got to tell you, Mr. Speaker, that that
optimism has been validated again and again and again. Actually, there
are positive signs. While it gets very little attention, we have come
together to craft solutions.
The issue that I've been involved in that, frankly, has been the most
unifying issue around here for us has been the trade issue. A year ago,
Democrats and Republicans came together and passed our long pending--
they'd been pending for over half a decade--our free trade agreements
with Colombia, Panama and South Korea with strong bipartisan votes.
Additionally, Mr. Speaker, our very first action following November's
very, very deeply polarizing election was to join together to
strengthen our hand against Russia's outrageous actions by passing
Permanent Normal Trade Relations. We did it with one of the largest
bipartisan and bicameral votes that a trade bill has ever seen. Mr.
Speaker, I would like to make the case that these consensus-driven
solutions should be a model for the 113th Congress.
Today, we are proceeding with a critical step to avert a serious
economic downturn; but this is only the beginning of the work that must
be done, as we all know. Ultimately, Mr. Speaker, we must reach an
agreement that combines, as I said earlier, meaningful entitlement
reform with new revenues in a way that puts us back on a path towards
growth and prosperity.
If we're going to accomplish this, we must work together--Republicans
and Democrats, Congress and the White House, the Federal Government and
the States, the public sector and the private sector. Now, Mr. Speaker,
some might say that saying those things is a cliche. But, as we all
know, Members are going to have to engage in rigorous debate, and there
needs to be that clash of ideas, a rigorous debate; but it needs to be
done in good faith and with a spirit of compromise.
Now, I realize that some argue that ``compromise'' is a sign of
weakness. In fact, one of the great strengths, Mr. Speaker, of our
Nation's Founders was their ability to compromise. The very structure
of this institution, the United States Congress, the very structure of
our institution which joins the people's House where we're all
privileged to serve with the State-focused United States Senate was
known as what? The Connecticut Compromise or the Great Compromise.
That's the very basis of our Founders. Too often, we forget that while
we should never--we should never compromise our principles, we must
always, Mr. Speaker, we must always be prepared to compromise in the
service of our principles.
A couple of weeks ago, ``The Economist'' described another example of
compromise, this one in what Justice Brandeis described as one of the
``laboratories of democracy,'' that being the State of Georgia. The
conservative Republican Governor, our former House colleague, Nathan
Deal, and the liberal mayor of Atlanta, Kasim Reed, are clearly at
opposite ends of the political spectrum. Yet they have managed to
bridge that divide through a commitment to results. Mr. Speaker,
together, they have achieved significant gains for the good of Georgia.
Mr. Speaker, Congress and the White House are perfectly capable of
following that same model for the good of our country. Americans may be
politically divided, but they are united in their desire to see their
leaders in Washington achieve results.
Now, Mr. Speaker, we know it's far from perfect, but I hope that this
bipartisan agreement can lay the foundation for continued work to
address the tremendous challenges that we face as a Nation. Millions of
Americans are out of work. The national debt as a percentage of gross
domestic product is too high. Upheaval exists in nearly every region
across the globe. Education and immigration reform must happen. The
potential for a crippling cyberattack continues to be a threat. Climate
change is a fact of life. And most recently, Mr. Speaker, our families
are reeling from the tragedy of Newtown. They're asking how we can
prevent it from ever happening again and how we can keep guns from
getting into the hands of dangerous people.
These are the great challenges to which we all must rise, for which
we all must find real solutions. I look forward to continuing to do my
small part as I follow the Madisonian directive and return to
California as a private citizen. It's been an incredible honor, Mr.
Speaker, an incredible honor for me to serve in what I describe--even
though the Senate often takes this label--as the greatest deliberative
body known to man, and I consider it an amazing honor to be able to
serve here.
Now, as I depart, and I hope that there is no correlation to my
departure, I believe that the United States Congress can actually be
better than it has ever been.
With that, I yield back the balance of my time, and I move the
previous question on the resolution.
The previous question was ordered.
The SPEAKER pro tempore. The question is on the resolution.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Mr. DREIER. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The vote was taken by electronic device, and there were--yeas 408,
nays 10, not voting 14, as follows:
[Roll No. 658]
YEAS--408
Ackerman
Adams
Aderholt
Akin
Alexander
Altmire
Amash
Amodei
Andrews
Austria
Baca
Bachmann
Bachus
Baldwin
Barber
Barletta
Bartlett
Barton (TX)
Bass (CA)
Becerra
Benishek
Berg
Berkley
Berman
Biggert
Bilbray
Bilirakis
Bishop (GA)
Bishop (NY)
Bishop (UT)
Black
Blackburn
Boehner
Bonamici
Bonner
Bono Mack
Boren
Boswell
Boustany
Brady (PA)
Brady (TX)
Braley (IA)
Brooks
Broun (GA)
Brown (FL)
Buchanan
Bucshon
Buerkle
Burgess
Butterfield
Calvert
Camp
Canseco
Cantor
Capito
Capps
Capuano
[[Page H7536]]
Carnahan
Carney
Carson (IN)
Carter
Cassidy
Castor (FL)
Chabot
Chaffetz
Chandler
Chu
Cicilline
Clarke (MI)
Clarke (NY)
Cleaver
Clyburn
Coble
Coffman (CO)
Cohen
Cole
Conaway
Connolly (VA)
Cooper
Costa
Costello
Courtney
Cravaack
Crawford
Crenshaw
Critz
Crowley
Cuellar
Culberson
Cummings
Curson (MI)
Davis (CA)
Davis (IL)
DeGette
DeLauro
DelBene
Denham
Dent
DesJarlais
Deutch
Diaz-Balart
Dicks
Dingell
Doggett
Dold
Donnelly (IN)
Doyle
Dreier
Duffy
Duncan (SC)
Duncan (TN)
Edwards
Ellison
Ellmers
Emerson
Engel
Eshoo
Farenthold
Farr
Fattah
Fincher
Fitzpatrick
Flake
Fleischmann
Fleming
Flores
Forbes
Fortenberry
Foxx
Frank (MA)
Franks (AZ)
Frelinghuysen
Fudge
Gallegly
Garamendi
Gardner
Garrett
Gerlach
Gibbs
Gibson
Gingrey (GA)
Gohmert
Gonzalez
Goodlatte
Gosar
Gowdy
Granger
Graves (GA)
Graves (MO)
Green, Al
Green, Gene
Griffin (AR)
Griffith (VA)
Grimm
Guinta
Guthrie
Gutierrez
Hahn
Hall
Hanabusa
Hanna
Harper
Harris
Hartzler
Hastings (FL)
Hastings (WA)
Hayworth
Heck
Heinrich
Hensarling
Herger
Herrera Beutler
Higgins
Himes
Hinchey
Hinojosa
Hochul
Holden
Holt
Honda
Hoyer
Huelskamp
Huizenga (MI)
Hultgren
Hunter
Hurt
Israel
Issa
Jackson Lee (TX)
Jenkins
Johnson (GA)
Johnson (IL)
Johnson (OH)
Johnson, E. B.
Johnson, Sam
Jones
Jordan
Kaptur
Keating
Kelly
Kildee
Kind
King (IA)
King (NY)
Kingston
Kinzinger (IL)
Kissell
Kline
Kucinich
Labrador
Lamborn
Lance
Landry
Langevin
Lankford
Larsen (WA)
Larson (CT)
Latham
LaTourette
Latta
Lee (CA)
Levin
Lipinski
LoBiondo
Loebsack
Lofgren, Zoe
Long
Lowey
Lucas
Luetkemeyer
Lujan
Lummis
Lungren, Daniel E.
Lynch
Mack
Maloney
Manzullo
Marchant
Marino
Markey
Massie
Matheson
Matsui
McCarthy (CA)
McCarthy (NY)
McCaul
McClintock
McCollum
McGovern
McHenry
McIntyre
McKeon
McKinley
McMorris Rodgers
McNerney
Meehan
Meeks
Mica
Michaud
Miller (FL)
Miller (MI)
Miller (NC)
Miller, Gary
Miller, George
Moore
Mulvaney
Murphy (CT)
Murphy (PA)
Myrick
Nadler
Napolitano
Neal
Neugebauer
Noem
Nugent
Nunes
Olson
Olver
Owens
Palazzo
Pallone
Pascrell
Pastor (AZ)
Paulsen
Payne
Pearce
Pelosi
Pence
Perlmutter
Peters
Petri
Pingree (ME)
Pitts
Platts
Poe (TX)
Polis
Pompeo
Price (GA)
Price (NC)
Quayle
Quigley
Rahall
Rangel
Reed
Rehberg
Reichert
Renacci
Reyes
Ribble
Richardson
Richmond
Rigell
Rivera
Roby
Roe (TN)
Rogers (AL)
Rogers (KY)
Rogers (MI)
Rohrabacher
Rokita
Rooney
Ros-Lehtinen
Roskam
Ross (AR)
Ross (FL)
Rothman (NJ)
Roybal-Allard
Royce
Runyan
Ruppersberger
Rush
Ryan (OH)
Ryan (WI)
Sanchez, Linda T.
Sanchez, Loretta
Sarbanes
Scalise
Schakowsky
Schiff
Schilling
Schock
Schrader
Schwartz
Schweikert
Scott (SC)
Scott, Austin
Scott, David
Sensenbrenner
Serrano
Sessions
Sewell
Sherman
Shimkus
Shuler
Shuster
Simpson
Sires
Slaughter
Smith (NE)
Smith (NJ)
Smith (TX)
Smith (WA)
Southerland
Speier
Stearns
Stivers
Stutzman
Sullivan
Sutton
Terry
Thompson (CA)
Thompson (MS)
Thompson (PA)
Thornberry
Tiberi
Tierney
Tipton
Tonko
Towns
Tsongas
Turner (NY)
Turner (OH)
Upton
Van Hollen
Velazquez
Walberg
Walden
Walsh (IL)
Walz (MN)
Wasserman Schultz
Waters
Watt
Waxman
Webster
Welch
West
Westmoreland
Wilson (FL)
Wilson (SC)
Wittman
Wolf
Womack
Woodall
Yarmuth
Yoder
Young (AK)
Young (FL)
Young (IN)
NAYS--10
Barrow
Blumenauer
DeFazio
McDermott
Moran
Peterson
Posey
Schmidt
Scott (VA)
Visclosky
NOT VOTING--14
Bass (NH)
Burton (IN)
Campbell
Clay
Conyers
Grijalva
Hirono
Lewis (CA)
Lewis (GA)
Nunnelee
Paul
Stark
Whitfield
Woolsey
{time} 2139
Mr. McDERMOTT changed his vote from ``yea'' to ``nay.''
Messrs. CHAFFETZ and RANGEL changed their vote from ``nay'' to
``yea.''
So the resolution was agreed to.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.
Mr. CAMP. Mr. Speaker, pursuant to House Resolution 844, I call up
the bill (H.R. 8) to extend certain tax relief provisions enacted in
2001 and 2003, and to provide for expedited consideration of a bill
providing for comprehensive tax reform, and for other purposes, with
the Senate amendments thereto, and I have a motion at the desk.
The Clerk read the title of the bill.
The SPEAKER pro tempore (Mr. Womack). The Clerk will designate the
Senate amendments.
The text of the Senate amendments is as follows:
Senate amendments:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE, ETC.
(a) Short Title.--This Act may be cited as the ``American
Taxpayer Relief Act of 2012''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a
section or other provision, the reference shall be considered
to be made to a section or other provision of the Internal
Revenue Code of 1986.
(c) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title, etc.
TITLE I--GENERAL EXTENSIONS
Sec. 101. Permanent extension and modification of 2001 tax relief.
Sec. 102. Permanent extension and modification of 2003 tax relief.
Sec. 103. Extension of 2009 tax relief.
Sec. 104. Permanent alternative minimum tax relief.
TITLE II--INDIVIDUAL TAX EXTENDERS
Sec. 201. Extension of deduction for certain expenses of elementary and
secondary school teachers.
Sec. 202. Extension of exclusion from gross income of discharge of
qualified principal residence indebtedness.
Sec. 203. Extension of parity for exclusion from income for employer-
provided mass transit and parking benefits.
Sec. 204. Extension of mortgage insurance premiums treated as qualified
residence interest.
Sec. 205. Extension of deduction of State and local general sales
taxes.
Sec. 206. Extension of special rule for contributions of capital gain
real property made for conservation purposes.
Sec. 207. Extension of above-the-line deduction for qualified tuition
and related expenses.
Sec. 208. Extension of tax-free distributions from individual
retirement plans for charitable purposes.
Sec. 209. Improve and make permanent the provision authorizing the
Internal Revenue Service to disclose certain return and
return information to certain prison officials.
TITLE III--BUSINESS TAX EXTENDERS
Sec. 301. Extension and modification of research credit.
Sec. 302. Extension of temporary minimum low-income tax credit rate for
non-federally subsidized new buildings.
Sec. 303. Extension of housing allowance exclusion for determining area
median gross income for qualified residential rental
project exempt facility bonds.
Sec. 304. Extension of Indian employment tax credit.
Sec. 305. Extension of new markets tax credit.
Sec. 306. Extension of railroad track maintenance credit.
Sec. 307. Extension of mine rescue team training credit.
Sec. 308. Extension of employer wage credit for employees who are
active duty members of the uniformed services.
Sec. 309. Extension of work opportunity tax credit.
Sec. 310. Extension of qualified zone academy bonds.
Sec. 311. Extension of 15-year straight-line cost recovery for
qualified leasehold improvements, qualified restaurant
buildings and improvements, and qualified retail
improvements.
Sec. 312. Extension of 7-year recovery period for motorsports
entertainment complexes.
Sec. 313. Extension of accelerated depreciation for business property
on an Indian reservation.
Sec. 314. Extension of enhanced charitable deduction for contributions
of food inventory.
Sec. 315. Extension of increased expensing limitations and treatment of
certain real property as section 179 property.
Sec. 316. Extension of election to expense mine safety equipment.
Sec. 317. Extension of special expensing rules for certain film and
television productions.
Sec. 318. Extension of deduction allowable with respect to income
attributable to domestic production activities in Puerto
Rico.
Sec. 319. Extension of modification of tax treatment of certain
payments to controlling exempt organizations.
Sec. 320. Extension of treatment of certain dividends of regulated
investment companies.
Sec. 321. Extension of RIC qualified investment entity treatment under
FIRPTA.
[[Page H7537]]
Sec. 322. Extension of subpart F exception for active financing income.
Sec. 323. Extension of look-thru treatment of payments between related
controlled foreign corporations under foreign personal
holding company rules.
Sec. 324. Extension of temporary exclusion of 100 percent of gain on
certain small business stock.
Sec. 325. Extension of basis adjustment to stock of S corporations
making charitable contributions of property.
Sec. 326. Extension of reduction in S-corporation recognition period
for built-in gains tax.
Sec. 327. Extension of empowerment zone tax incentives.
Sec. 328. Extension of tax-exempt financing for New York Liberty Zone.
Sec. 329. Extension of temporary increase in limit on cover over of rum
excise taxes to Puerto Rico and the Virgin Islands.
Sec. 330. Modification and extension of American Samoa economic
development credit.
Sec. 331. Extension and modification of bonus depreciation.
TITLE IV--ENERGY TAX EXTENDERS
Sec. 401. Extension of credit for energy-efficient existing homes.
Sec. 402. Extension of credit for alternative fuel vehicle refueling
property.
Sec. 403. Extension of credit for 2- or 3-wheeled plug-in electric
vehicles.
Sec. 404. Extension and modification of cellulosic biofuel producer
credit.
Sec. 405. Extension of incentives for biodiesel and renewable diesel.
Sec. 406. Extension of production credit for Indian coal facilities
placed in service before 2009.
Sec. 407. Extension and modification of credits with respect to
facilities producing energy from certain renewable
resources.
Sec. 408. Extension of credit for energy-efficient new homes.
Sec. 409. Extension of credit for energy-efficient appliances.
Sec. 410. Extension and modification of special allowance for
cellulosic biofuel plant property.
Sec. 411. Extension of special rule for sales or dispositions to
implement FERC or State electric restructuring policy for
qualified electric utilities.
Sec. 412. Extension of alternative fuels excise tax credits.
TITLE V--UNEMPLOYMENT
Sec. 501. Extension of emergency unemployment compensation program.
Sec. 502. Temporary extension of extended benefit provisions.
Sec. 503. Extension of funding for reemployment services and
reemployment and eligibility assessment activities.
Sec. 504. Additional extended unemployment benefits under the Railroad
Unemployment Insurance Act.
TITLE VI--MEDICARE AND OTHER HEALTH EXTENSIONS
Subtitle A--Medicare Extensions
Sec. 601. Medicare physician payment update.
Sec. 602. Work geographic adjustment.
Sec. 603. Payment for outpatient therapy services.
Sec. 604. Ambulance add-on payments.
Sec. 605. Extension of Medicare inpatient hospital payment adjustment
for low-volume hospitals.
Sec. 606. Extension of the Medicare-dependent hospital (MDH) program.
Sec. 607. Extension for specialized Medicare Advantage plans for
special needs individuals.
Sec. 608. Extension of Medicare reasonable cost contracts.
Sec. 609. Performance improvement.
Sec. 610. Extension of funding outreach and assistance for low-income
programs.
Subtitle B--Other Health Extensions
Sec. 621. Extension of the qualifying individual (QI) program.
Sec. 622. Extension of Transitional Medical Assistance (TMA).
Sec. 623. Extension of Medicaid and CHIP Express Lane option.
Sec. 624. Extension of family-to-family health information centers.
Sec. 625. Extension of Special Diabetes Program for Type I diabetes and
for Indians.
Subtitle C--Other Health Provisions
Sec. 631. IPPS documentation and coding adjustment for implementation
of MS-DRGs.
Sec. 632. Revisions to the Medicare ESRD bundled payment system to
reflect findings in the GAO report.
Sec. 633. Treatment of multiple service payment policies for therapy
services.
Sec. 634. Payment for certain radiology services furnished under the
Medicare hospital outpatient department prospective
payment system.
Sec. 635. Adjustment of equipment utilization rate for advanced imaging
services.
Sec. 636. Medicare payment of competitive prices for diabetic supplies
and elimination of overpayment for diabetic supplies.
Sec. 637. Medicare payment adjustment for non-emergency ambulance
transports for ESRD beneficiaries.
Sec. 638. Removing obstacles to collection of overpayments.
Sec. 639. Medicare advantage coding intensity adjustment.
Sec. 640. Elimination of all funding for the Medicare Improvement Fund.
Sec. 641. Rebasing of State DSH allotments.
Sec. 642. Repeal of CLASS program.
Sec. 643. Commission on Long-Term Care.
Sec. 644. Consumer Operated and Oriented Plan program contingency fund.
TITLE VII--EXTENSION OF AGRICULTURAL PROGRAMS
Sec. 701. 1-year extension of agricultural programs.
Sec. 702. Supplemental agricultural disaster assistance.
TITLE VIII--MISCELLANEOUS PROVISIONS
Sec. 801. Strategic delivery systems.
Sec. 802. No cost of living adjustment in pay of members of congress.
TITLE IX--BUDGET PROVISIONS
Subtitle A--Modifications of Sequestration
Sec. 901. Treatment of sequester.
Sec. 902. Amounts in applicable retirement plans may be transferred to
designated Roth accounts without distribution.
Subtitle B--Budgetary Effects
Sec. 911. Budgetary effects.
TITLE I--GENERAL EXTENSIONS
SEC. 101. PERMANENT EXTENSION AND MODIFICATION OF 2001 TAX
RELIEF.
(a) Permanent Extension.--
(1) In general.--The Economic Growth and Tax Relief
Reconciliation Act of 2001 is amended by striking title IX.
(2) Conforming amendment.--The Tax Relief, Unemployment
Insurance Reauthorization, and Job Creation Act of 2010 is
amended by striking section 304.
(3) Effective date.--The amendments made by this subsection
shall apply to taxable, plan, or limitation years beginning
after December 31, 2012, and estates of decedents dying,
gifts made, or generation skipping transfers after December
31, 2012.
(b) Application of Income Tax to Certain High-Income
Taxpayers.--
(1) Income tax rates.--
(A) Treatment of 25-, 28-, and 33-percent rate brackets.--
Paragraph (2) of section 1(i) is amended to read as follows:
``(2) 25-, 28-, and 33-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)),
``(B) by substituting `28%' for `31%' each place it
appears, and
``(C) by substituting `33%' for `36%' each place it
appears.''.
(B) 35-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:
``(3) Modifications to income tax brackets for high-income
taxpayers.--
``(A) 35-percent rate bracket.--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 highest rate
bracket shall be 35 percent to the extent such income does
not exceed an amount equal to the excess of--
``(I) the applicable threshold, over
``(II) the dollar amount at which such bracket begins, and
``(ii) the 39.6 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 threshold.--For purposes of this
paragraph, the term `applicable threshold' means--
``(i) $450,000 in the case of subsection (a),
``(ii) $425,000 in the case of subsection (b),
``(iii) $400,000 in the case of subsection (c), and
``(iv) \1/2\ the amount applicable under clause (i) (after
adjustment, if any, under subparagraph (C)) in the case of
subsection (d).
``(C) Inflation adjustment.--For purposes of this
paragraph, with respect to taxable years beginning in
calendar years after 2013, each of the dollar amounts under
clauses (i), (ii), and (iii) of subparagraph (B) shall be
adjusted in the same manner as under paragraph (1)(C)(i),
except that subsection (f)(3)(B) shall be applied by
substituting `2012' for `1992'.''.
(2) Phaseout of personal exemptions and itemized
deductions.--
(A) Overall limitation on itemized deductions.--Section 68
is amended--
(i) by striking subsection (b) and inserting the following:
``(b) Applicable Amount.--
``(1) In general.--For purposes of this section, the term
`applicable amount' means--
``(A) $300,000 in the case of a joint return or a surviving
spouse (as defined in section 2(a)),
``(B) $275,000 in the case of a head of household (as
defined in section 2(b)),
``(C) $250,000 in the case of an individual who is not
married and who is not a surviving spouse or head of
household, and
``(D) \1/2\ the amount applicable under subparagraph (A)
(after adjustment, if any, under paragraph (2)) in the case
of a married individual filing a separate return.
For purposes of this paragraph, marital status shall be
determined under section 7703.
``(2) Inflation adjustment.--In the case of any taxable
year beginning in calendar years after 2013, each of the
dollar amounts under subparagraphs (A), (B), and (C) of
paragraph (1) shall be shall be increased by an amount equal
to--
``(A) such dollar amount, multiplied by
[[Page H7538]]
``(B) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, except that section 1(f)(3)(B) shall be applied
by substituting `2012' for `1992'.
If any amount after adjustment under the preceding sentence
is not a multiple of $50, such amount shall be rounded to the
next lowest multiple of $50.'', and
(ii) 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 amount in effect
under section 68(b)'',
(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''.
(3) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31,
2012.
(c) Modifications of Estate Tax.--
(1) Maximum estate tax rate equal to 40 percent.--The table
contained in subsection (c) of section 2001, as amended by
section 302(a)(2) of the Tax Relief, Unemployment Insurance
Reauthorization, and Job Creation Act of 2010, is amended by
striking ``Over $500,000'' and all that follows and inserting
the following:
``Over $500,000 but not over $750,000........ $155,800, plus 37 percent of the excess of such amount over
$500,000.
Over $750,000 but not over $1,000,000........ $248,300, plus 39 percent of the excess of such amount over
$750,000.
Over $1,000,000.............................. $345,800, plus 40 percent of the excess of such amount over
$1,000,000.''.
(2) Technical correction.--Clause (i) of section
2010(c)(4)(B) is amended by striking ``basic exclusion
amount'' and inserting ``applicable exclusion amount''.
(3) Effective dates.--
(A) In general.--Except as otherwise provided by in this
paragraph, the amendments made by this subsection shall apply
to estates of decedents dying, generation-skipping transfers,
and gifts made, after December 31, 2012.
(B) Technical correction.--The amendment made by paragraph
(2) shall take effect as if included in the amendments made
by section 303 of the Tax Relief, Unemployment Insurance
Reauthorization, and Job Creation Act of 2010.
SEC. 102. PERMANENT EXTENSION AND MODIFICATION OF 2003 TAX
RELIEF.
(a) Permanent Extension.--The Jobs and Growth Tax Relief
Reconciliation Act of 2003 is amended by striking section
303.
(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 of--
``(I) the amount of taxable income which would (without
regard to this paragraph) be taxed at a rate below 39.6
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.
SEC. 103. EXTENSION OF 2009 TAX RELIEF.
(a) 5-year Extension of American Opportunity Tax Credit.--
(1) In general.--Section 25A(i) is amended by striking ``in
2009, 2010, 2011, or 2012'' and inserting ``after 2008 and
before 2018''.
(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 ``in 2009, 2010, 2011, and
2012'' each place it appears and inserting ``after 2008 and
before 2018''.
(b) 5-year Extension of Child Tax Credit.--Section 24(d)(4)
is amended--
(1) by striking ``2009, 2010, 2011, and 2012'' in the
heading and inserting ``for certain years'', and
(2) by striking ``in 2009, 2010, 2011, or 2012'' and
inserting ``after 2008 and before 2018''.
(c) 5-year Extension of Earned Income Tax Credit.--Section
32(b)(3) is amended--
(1) by striking ``2009, 2010, 2011, and 2012'' in the
heading and inserting ``for certain years'', and
(2) by striking ``in 2009, 2010, 2011, or 2012'' and
inserting ``after 2008 and before 2018''.
(d) Permanent Extension of Rule Disregarding Refunds in the
Administration of Federal Programs and Federally Assisted
Programs.--Section 6409 is amended to read as follows:
``SEC. 6409. REFUNDS DISREGARDED IN THE ADMINISTRATION OF
FEDERAL PROGRAMS AND FEDERALLY ASSISTED
PROGRAMS.
``Notwithstanding any other provision of law, any refund
(or advance payment with respect to a refundable credit) made
to any individual under this title shall not be taken into
account as income, and shall not be taken into account as
resources for a period of 12 months from receipt, for
purposes of determining the eligibility of such individual
(or any other individual) for benefits or assistance (or the
amount or extent of benefits or assistance) under any Federal
program or under any State or local program financed in whole
or in part with Federal funds.''.
(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 regarding disregard of refunds.--The amendment
made by subsection (d) shall apply to amounts received after
December 31, 2012.
SEC. 104. PERMANENT ALTERNATIVE MINIMUM TAX RELIEF.
(a) 2012 Exemption Amounts Made Permanent.--
(1) In general.--Paragraph (1) of section 55(d) is
amended--
(A) by striking ``$45,000'' and all that follows through
``2011)'' in subparagraph (A) and inserting ``$78,750'',
(B) by striking ``$33,750'' and all that follows through
``2011)'' in subparagraph (B) and inserting ``$50,600'', and
(C) by striking ``paragraph (1)(A)'' in subparagraph (C)
and inserting ``subparagraph (A)''.
(b) Exemption Amounts Indexed for Inflation.--
(1) In general.--Subsection (d) of section 55 is amended by
adding at the end the following new paragraph:
``(4) Inflation adjustment.--
``(A) In general.--In the case of any taxable year
beginning in a calendar year after 2012, the amounts
described in subparagraph (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, determined by substituting `calendar year 2011'
for `calendar year 1992' in subparagraph (B) thereof.
``(B) Amounts described.--The amounts described in this
subparagraph are--
``(i) each of the dollar amounts contained in subsection
(b)(1)(A)(i),
``(ii) each of the dollar amounts contained in paragraph
(1), and
``(iii) each of the dollar amounts in subparagraphs (A) and
(B) of paragraph (3).
``(C) Rounding.--Any increase determined under subparagraph
(A) shall be rounded to the nearest multiple of $100.''.
(2) Conforming amendments.--
(A) Clause (iii) of section 55(b)(1)(A) is amended by
striking ``by substituting'' and all that follows through
``appears.'' and inserting ``by substituting 50 percent of
the dollar amount otherwise applicable under subclause (I)
and subclause (II) thereof.''.
(B) Paragraph (3) of section 55(d) is amended--
(i) by striking ``or (2)'' in subparagraph (A),
(ii) by striking ``and'' at the end of subparagraph (B),
and
(iii) by striking subparagraph (C) and inserting the
following new subparagraphs:
``(C) 50 percent of the dollar amount applicable under
subparagraph (A) in the case of a taxpayer described in
subparagraph (C) or (D) of paragraph (1), and
[[Page H7539]]
``(D) $150,000 in the case of a taxpayer described in
paragraph (2).''.
(c) Alternative Minimum Tax Relief for Nonrefundable
Credits.--
(1) In general.--Subsection (a) of section 26 is amended to
read as follows:
``(a) Limitation Based on Amount of Tax.--The aggregate
amount of credits allowed by this subpart for the taxable
year shall not exceed the sum of--
``(1) the taxpayer's regular tax liability for the taxable
year reduced by the foreign tax credit allowable under
section 27(a), and
``(2) the tax imposed by section 55(a) for the taxable
year.''.
(2) Conforming amendments.--
(A) Adoption credit.--
(i) Section 23(b) is amended by striking paragraph (4).
(ii) Section 23(c) is amended by striking paragraphs (1)
and (2) and inserting the following:
``(1) In general.--If the credit allowable under subsection
(a) for any taxable year exceeds the limitation imposed by
section 26(a) for such taxable year reduced by the sum of the
credits allowable under this subpart (other than this section
and sections 25D and 1400C), such excess shall be carried to
the succeeding taxable year and added to the credit allowable
under subsection (a) for such taxable year.''.
(iii) Section 23(c) is amended by redesignating paragraph
(3) as paragraph (2).
(B) Child tax credit.--
(i) Section 24(b) is amended by striking paragraph (3).
(ii) Section 24(d)(1) is amended--
(I) by striking ``section 26(a)(2) or subsection (b)(3), as
the case may be,'' each place it appears in subparagraphs (A)
and (B) and inserting ``section 26(a)'', and
(II) by striking ``section 26(a)(2) or subsection (b)(3),
as the case may be'' in the second last sentence and
inserting ``section 26(a)''.
(C) Credit for interest on certain home mortgages.--Section
25(e)(1)(C) is amended to read as follows:
``(C) Applicable tax limit.--For purposes of this
paragraph, the term `applicable tax limit' means the
limitation imposed by section 26(a) for the taxable year
reduced by the sum of the credits allowable under this
subpart (other than this section and sections 23, 25D, and
1400C).''.
(D) Hope and lifetime learning credits.--Section 25A(i) is
amended--
(i) by striking paragraph (5) and by redesignating
paragraphs (6) and (7) as paragraphs (5) and (6),
respectively, and
(ii) by striking ``section 26(a)(2) or paragraph (5), as
the case may be'' in paragraph (5), as redesignated by clause
(i), and inserting ``section 26(a)''.
(E) Savers' credit.--Section 25B is amended by striking
subsection (g).
(F) Residential energy efficient property.--Section 25D(c)
is amended to read as follows:
``(c) Carryforward of Unused Credit.--If the credit
allowable under subsection (a) exceeds the limitation imposed
by section 26(a) for such taxable year reduced by the sum of
the credits allowable under this subpart (other than this
section), such excess shall be carried to the succeeding
taxable year and added to the credit allowable under
subsection (a) for such succeeding taxable year.''.
(G) Certain plug-in electric vehicles.--Section 30(c)(2) is
amended to read as follows:
``(2) Personal credit.--For purposes of this title, the
credit allowed under subsection (a) for any taxable year
(determined after application of paragraph (1)) shall be
treated as a credit allowable under subpart A for such
taxable year.''.
(H) Alternative motor vehicle credit.--Section 30B(g)(2) is
amended to read as follows:
``(2) Personal credit.--For purposes of this title, the
credit allowed under subsection (a) for any taxable year
(determined after application of paragraph (1)) shall be
treated as a credit allowable under subpart A for such
taxable year.''.
(I) New qualified plug-in electric vehicle credit.--Section
30D(c)(2) is amended to read as follows:
``(2) Personal credit.--For purposes of this title, the
credit allowed under subsection (a) for any taxable year
(determined after application of paragraph (1)) shall be
treated as a credit allowable under subpart A for such
taxable year.''.
(J) Cross references.--Section 55(c)(3) is amended by
striking ``26(a), 30C(d)(2),'' and inserting ``30C(d)(2)''.
(K) Foreign tax credit.--Section 904 is amended by striking
subsection (i) and by redesignating subsections (j) , (k),
and (l) as subsections (i), (j), and (k), respectively.
(L) First-time home buyer credit for the district of
columbia.--Section 1400C(d) is amended to read as follows:
``(d) Carryforward of Unused Credit.--If the credit
allowable under subsection (a) exceeds the limitation imposed
by section 26(a) for such taxable year reduced by the sum of
the credits allowable under subpart A of part IV of
subchapter A (other than this section and section 25D), such
excess shall be carried to the succeeding taxable year and
added to the credit allowable under subsection (a) for such
taxable year.''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2011.
TITLE II--INDIVIDUAL TAX EXTENDERS
SEC. 201. EXTENSION OF DEDUCTION FOR CERTAIN EXPENSES OF
ELEMENTARY AND SECONDARY SCHOOL TEACHERS.
(a) In General.--Subparagraph (D) of section 62(a)(2) is
amended by striking ``or 2011'' and inserting ``2011, 2012,
or 2013''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2011.
SEC. 202. EXTENSION OF EXCLUSION FROM GROSS INCOME OF
DISCHARGE OF QUALIFIED PRINCIPAL RESIDENCE
INDEBTEDNESS.
(a) In General.--Subparagraph (E) of section 108(a)(1) is
amended by striking ``January 1, 2013'' and inserting
``January 1, 2014''.
(b) Effective Date.--The amendment made by this section
shall apply to indebtedness discharged after December 31,
2012.
SEC. 203. EXTENSION OF PARITY FOR EXCLUSION FROM INCOME FOR
EMPLOYER-PROVIDED MASS TRANSIT AND PARKING
BENEFITS.
(a) In General.--Paragraph (2) of section 132(f) is amended
by striking ``January 1, 2012'' and inserting ``January 1,
2014''.
(b) Effective Date.--The amendment made by this section
shall apply to months after December 31, 2011.
SEC. 204. 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, 2011'' and inserting
``December 31, 2013''.
(b) Technical Amendments.--Clause (i) of section
163(h)(4)(E) is amended--
(1) by striking ``Veterans Administration'' and inserting
``Department of Veterans Affairs'', and
(2) by striking ``Rural Housing Administration'' and
inserting ``Rural Housing Service''.
(c) Effective Date.--The amendments made by this section
shall apply to amounts paid or accrued after December 31,
2011.
SEC. 205. 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, 2012'' and inserting
``January 1, 2014''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2011.
SEC. 206. 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, 2011'' and inserting
``December 31, 2013''.
(b) Contributions by Certain Corporate Farmers and
Ranchers.--Clause (iii) of section 170(b)(2)(B) is amended by
striking ``December 31, 2011'' and inserting ``December 31,
2013''.
(c) Effective Date.--The amendments made by this section
shall apply to contributions made in taxable years beginning
after December 31, 2011.
SEC. 207. 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, 2011'' and inserting ``December
31, 2013''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2011.
SEC. 208. 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, 2011'' and inserting
``December 31, 2013''.
(b) Effective Date; Special Rule.--
(1) Effective date.--The amendment made by this section
shall apply to distributions made in taxable years beginning
after December 31, 2011.
(2) Special rules.--For purposes of subsections (a)(6),
(b)(3), and (d)(8) of section 408 of the Internal Revenue
Code of 1986, at the election of the taxpayer (at such time
and in such manner as prescribed by the Secretary of the
Treasury)--
(A) any qualified charitable distribution made after
December 31, 2012, and before February 1, 2013, shall be
deemed to have been made on December 31, 2012, and
(B) any portion of a distribution from an individual
retirement account to the taxpayer after November 30, 2012,
and before January 1, 2013, may be treated as a qualified
charitable distribution to the extent that--
(i) such portion is transferred in cash after the
distribution to an organization described in section
408(d)(8)(B)(i) before February 1, 2013, and
(ii) such portion is part of a distribution that would meet
the requirements of section 408(d)(8) but for the fact that
the distribution was not transferred directly to an
organization described in section 408(d)(8)(B)(i).
SEC. 209. IMPROVE AND MAKE PERMANENT THE PROVISION
AUTHORIZING THE INTERNAL REVENUE SERVICE TO
DISCLOSE CERTAIN RETURN AND RETURN INFORMATION
TO CERTAIN PRISON OFFICIALS.
(a) In General.--Paragraph (10) of section 6103(k) is
amended to read as follows:
``(10) Disclosure of certain returns and return information
to certain prison officials.--
``(A) In general.--Under such procedures as the Secretary
may prescribe, the Secretary may disclose to officers and
employees of the Federal Bureau of Prisons and of any State
agency charged with the responsibility for administration of
prisons any returns or return information with respect to
individuals incarcerated in Federal or State prison systems
whom the Secretary has determined may have filed or
facilitated the filing of a false or fraudulent return to the
extent that the Secretary determines that such disclosure is
necessary to permit effective Federal tax administration.
``(B) Disclosure to contractor-run prisons.--Under such
procedures as the Secretary may prescribe, the disclosures
authorized by subparagraph (A) may be made to contractors
responsible for the operation of a Federal or
[[Page H7540]]
State prison on behalf of such Bureau or agency.
``(C) Restrictions on use of disclosed information.--Any
return or return information received under this paragraph
shall be used only for the purposes of and to the extent
necessary in taking administrative action to prevent the
filing of false and fraudulent returns, including
administrative actions to address possible violations of
administrative rules and regulations of the prison facility
and in administrative and judicial proceedings arising from
such administrative actions.
``(D) Restrictions on redisclosure and disclosure to legal
representatives.--Notwithstanding subsection (h)--
``(i) Restrictions on redisclosure.--Except as provided in
clause (ii), any officer, employee, or contractor of the
Federal Bureau of Prisons or of any State agency charged with
the responsibility for administration of prisons shall not
disclose any information obtained under this paragraph to any
person other than an officer or employee or contractor of
such Bureau or agency personally and directly engaged in the
administration of prison facilities on behalf of such Bureau
or agency.
``(ii) Disclosure to legal representatives.--The returns
and return information disclosed under this paragraph may be
disclosed to the duly authorized legal representative of the
Federal Bureau of Prisons, State agency, or contractor
charged with the responsibility for administration of
prisons, or of the incarcerated individual accused of filing
the false or fraudulent return who is a party to an action or
proceeding described in subparagraph (C), solely in
preparation for, or for use in, such action or proceeding.''.
(b) Conforming Amendments.--
(1) Paragraph (3) of section 6103(a) is amended by
inserting ``subsection (k)(10),'' after ``subsection
(e)(1)(D)(iii),''.
(2) Paragraph (4) of section 6103(p) is amended--
(A) by inserting ``subsection (k)(10),'' before
``subsection (l)(10),'' in the matter preceding subparagraph
(A),
(B) in subparagraph (F)(i)--
(i) by inserting ``(k)(10),'' before ``or (l)(6),'', and
(ii) by inserting ``subsection (k)(10) or'' before
``subsection (l)(10),'', and
(C) by inserting ``subsection (k)(10) or'' before
``subsection (l)(10),'' both places it appears in the matter
following subparagraph (F)(iii).
(3) Paragraph (2) of section 7213(a) is amended by
inserting ``(k)(10),'' before ``(l)(6),''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
TITLE III--BUSINESS TAX EXTENDERS
SEC. 301. EXTENSION AND MODIFICATION OF RESEARCH CREDIT.
(a) Extension.--
(1) In general.--Subparagraph (B) of section 41(h)(1) is
amended by striking ``December 31, 2011'' and inserting
``December 31, 2013''.
(2) Conforming amendment.--Subparagraph (D) of section
45C(b)(1) is amended by striking ``December 31, 2011'' and
inserting ``December 31, 2013''.
(b) Inclusion of Qualified Research Expenses and Gross
Receipts of an Acquired Person.--
(1) Partial inclusion of pre-acquisition qualified research
expenses and gross receipts.--Subparagraph (A) of section
41(f)(3) is amended to read as follows:
``(A) Acquisitions.--
``(i) In general.--If a person acquires the major portion
of either a trade or business or a separate unit of a trade
or business (hereinafter in this paragraph referred to as the
`acquired business') of another person (hereinafter in this
paragraph referred to as the `predecessor'), then the amount
of qualified research expenses paid or incurred by the
acquiring person during the measurement period shall be
increased by the amount determined under clause (ii), and the
gross receipts of the acquiring person for such period shall
be increased by the amount determined under clause (iii).
``(ii) Amount determined with respect to qualified research
expenses.--The amount determined under this clause is--
``(I) for purposes of applying this section for the taxable
year in which such acquisition is made, the acquisition year
amount, and
``(II) for purposes of applying this section for any
taxable year after the taxable year in which such acquisition
is made, the qualified research expenses paid or incurred by
the predecessor with respect to the acquired business during
the measurement period.
``(iii) Amount determined with respect to gross receipts.--
The amount determined under this clause is the amount which
would be determined under clause (ii) if `the gross receipts
of' were substituted for `the qualified research expenses
paid or incurred by' each place it appears in clauses (ii)
and (iv).
``(iv) Acquisition year amount.--For purposes of clause
(ii), the acquisition year amount is the amount equal to the
product of--
``(I) the qualified research expenses paid or incurred by
the predecessor with respect to the acquired business during
the measurement period, and
``(II) the number of days in the period beginning on the
date of the acquisition and ending on the last day of the
taxable year in which the acquisition is made,
divided by the number of days in the acquiring person's
taxable year.
``(v) Special rules for coordinating taxable years.--In the
case of an acquiring person and a predecessor whose taxable
years do not begin on the same date--
``(I) each reference to a taxable year in clauses (ii) and
(iv) shall refer to the appropriate taxable year of the
acquiring person,
``(II) the qualified research expenses paid or incurred by
the predecessor, and the gross receipts of the predecessor,
during each taxable year of the predecessor any portion of
which is part of the measurement period shall be allocated
equally among the days of such taxable year,
``(III) the amount of such qualified research expenses
taken into account under clauses (ii) and (iv) with respect
to a taxable year of the acquiring person shall be equal to
the total of the expenses attributable under subclause (II)
to the days occurring during such taxable year, and
``(IV) the amount of such gross receipts taken into account
under clause (iii) with respect to a taxable year of the
acquiring person shall be equal to the total of the gross
receipts attributable under subclause (II) to the days
occurring during such taxable year.
``(vi) Measurement period.--For purposes of this
subparagraph, the term `measurement period' means, with
respect to the taxable year of the acquiring person for which
the credit is determined, any period of the acquiring person
preceding such taxable year which is taken into account for
purposes of determining the credit for such year.''.
(2) Expenses and gross receipts of a predecessor.--
Subparagraph (B) of section 41(f)(3) is amended to read as
follows:
``(B) Dispositions.--If the predecessor furnished to the
acquiring person such information as is necessary for the
application of subparagraph (A), then, for purposes of
applying this section for any taxable year ending after such
disposition, the amount of qualified research expenses paid
or incurred by, and the gross receipts of, the predecessor
during the measurement period (as defined in subparagraph
(A)(vi), determined by substituting `predecessor' for
`acquiring person' each place it appears) shall be reduced
by--
``(i) in the case of the taxable year in which such
disposition is made, an amount equal to the product of--
``(I) the qualified research expenses paid or incurred by,
or gross receipts of, the predecessor with respect to the
acquired business during the measurement period (as so
defined and so determined), and
``(II) the number of days in the period beginning on the
date of acquisition (as determined for purposes of
subparagraph (A)(iv)(II)) and ending on the last day of the
taxable year of the predecessor in which the disposition is
made,
divided by the number of days in the taxable year of the
predecessor, and
``(ii) in the case of any taxable year ending after the
taxable year in which such disposition is made, the amount
described in clause (i)(I).''.
(c) Aggregation of Expenditures.--Paragraph (1) of section
41(f) is amended--
(1) by striking ``shall be its proportionate shares of the
qualified research expenses, basic research payments, and
amounts paid or incurred to energy research consortiums,
giving rise to the credit'' in subparagraph (A)(ii) and
inserting ``shall be determined on a proportionate basis to
its share of the aggregate of the qualified research
expenses, basic research payments, and amounts paid or
incurred to energy research consortiums, taken into account
by such controlled group for purposes of this section'', and
(2) by striking ``shall be its proportionate shares of the
qualified research expenses, basic research payments, and
amounts paid or incurred to energy research consortiums,
giving rise to the credit'' in subparagraph (B)(ii) and
inserting ``shall be determined on a proportionate basis to
its share of the aggregate of the qualified research
expenses, basic research payments, and amounts paid or
incurred to energy research consortiums, taken into account
by all such persons under common control for purposes of this
section''.
(d) Effective Date.--
(1) Extension.--The amendments made by subsection (a) shall
apply to amounts paid or incurred after December 31, 2011.
(2) Modifications.--The amendments made by subsections (b)
and (c) shall apply to taxable years beginning after December
31, 2011.
SEC. 302. EXTENSION OF TEMPORARY MINIMUM LOW-INCOME TAX
CREDIT RATE FOR NON-FEDERALLY SUBSIDIZED NEW
BUILDINGS.
(a) In General.--Subparagraph (A) of section 42(b)(2) is
amended by striking ``and before December 31, 2013'' and
inserting ``with respect to housing credit dollar amount
allocations made before January 1, 2014''.
(b) Effective Date.--The amendment made by this section
shall take effect on the date of the enactment of this Act.
SEC. 303. EXTENSION OF HOUSING ALLOWANCE EXCLUSION FOR
DETERMINING AREA MEDIAN GROSS INCOME FOR
QUALIFIED RESIDENTIAL RENTAL PROJECT EXEMPT
FACILITY BONDS.
(a) In General.--Subsection (b) of section 3005 of the
Housing Assistance Tax Act of 2008 is amended by striking
``January 1, 2012'' each place it appears and inserting
``January 1, 2014''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in the enactment of section
3005 of the Housing Assistance Tax Act of 2008.
SEC. 304. EXTENSION OF INDIAN EMPLOYMENT TAX CREDIT.
(a) In General.--Subsection (f) of section 45A is amended
by striking ``December 31, 2011'' and inserting ``December
31, 2013''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2011.
SEC. 305. EXTENSION OF NEW MARKETS TAX CREDIT.
(a) In General.--Subparagraph (G) of section 45D(f)(1) is
amended by striking ``2010 and 2011'' and inserting ``2010,
2011, 2012, and 2013''.
[[Page H7541]]
(b) Carryover of Unused Limitation.--Paragraph (3) of
section 45D(f) is amended by striking ``2016'' and inserting
``2018''.
(c) Effective Date.--The amendments made by this section
shall apply to calendar years beginning after December 31,
2011.
SEC. 306. EXTENSION OF RAILROAD TRACK MAINTENANCE CREDIT.
(a) In General.--Subsection (f) of section 45G is amended
by striking ``January 1, 2012'' and inserting ``January 1,
2014''.
(b) Effective Date.--The amendment made by this section
shall apply to expenditures paid or incurred in taxable years
beginning after December 31, 2011.
SEC. 307. EXTENSION OF MINE RESCUE TEAM TRAINING CREDIT.
(a) In General.--Subsection (e) of section 45N is amended
by striking ``December 31, 2011'' and inserting ``December
31, 2013''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2011.
SEC. 308. EXTENSION OF EMPLOYER WAGE CREDIT FOR EMPLOYEES WHO
ARE ACTIVE DUTY MEMBERS OF THE UNIFORMED
SERVICES.
(a) In General.--Subsection (f) of section 45P is amended
by striking ``December 31, 2011'' and inserting ``December
31, 2013''.
(b) Effective Date.--The amendment made by this section
shall apply to payments made after December 31, 2011.
SEC. 309. EXTENSION OF WORK OPPORTUNITY TAX CREDIT.
(a) In General.--Subparagraph (B) of section 51(c)(4) is
amended by striking ``after'' and all that follows and
inserting ``after December 31, 2013''.
(b) Effective Date.--The amendment made by this section
shall apply to individuals who begin work for the employer
after December 31, 2011.
SEC. 310. EXTENSION OF QUALIFIED ZONE ACADEMY BONDS.
(a) In General.--Paragraph (1) of section 54E(c) is amended
by inserting ``, 2012, and 2013'' after ``for 2011''.
(b) Effective Date.--The amendments made by this section
shall apply to obligations issued after December 31, 2011.
SEC. 311. 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, 2012''
and inserting ``January 1, 2014''.
(b) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2011.
SEC. 312. 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, 2011'' and inserting
``December 31, 2013''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2011.
SEC. 313. EXTENSION OF ACCELERATED DEPRECIATION FOR BUSINESS
PROPERTY ON AN INDIAN RESERVATION.
(a) In General.--Paragraph (8) of section 168(j) is amended
by striking ``December 31, 2011'' and inserting ``December
31, 2013''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2011.
SEC. 314. 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, 2011'' and inserting
``December 31, 2013''.
(b) Effective Date.--The amendment made by this section
shall apply to contributions made after December 31, 2011.
SEC. 315. EXTENSION OF INCREASED EXPENSING LIMITATIONS AND
TREATMENT OF CERTAIN REAL PROPERTY AS SECTION
179 PROPERTY.
(a) In General.--
(1) Dollar limitation.--Section 179(b)(1) is amended--
(A) by striking ``2010 or 2011,'' in subparagraph (B) and
inserting ``2010, 2011, 2012, or 2013, and'',
(B) by striking subparagraph (C),
(C) by redesignating subparagraph (D) as subparagraph (C),
and
(D) in subparagraph (C), as so redesignated, by striking
``2012'' and inserting ``2013''.
(2) Reduction in limitation.--Section 179(b)(2) is
amended--
(A) by striking ``2010 or 2011,'' in subparagraph (B) and
inserting ``2010, 2011, 2012, or 2013, and'',
(B) by striking subparagraph (C),
(C) by redesignating subparagraph (D) as subparagraph (C),
and
(D) in subparagraph (C), as so redesignated, by striking
``2012'' and inserting ``2013''.
(3) Conforming amendment.--Subsection (b) of section 179 is
amended by striking paragraph (6).
(b) Computer Software.--Section 179(d)(1)(A)(ii) is amended
by striking ``2013'' and inserting ``2014''.
(c) Election.--Section 179(c)(2) is amended by striking
``2013'' and inserting ``2014''.
(d) Special Rules for Treatment of Qualified Real
Property.--
(1) In general.--Section 179(f)(1) is amended by striking
``2010 or 2011'' and inserting ``2010, 2011, 2012, or 2013''.
(2) Carryover limitation.--
(A) In general.--Section 179(f)(4) is amended by striking
``2011'' each place it appears and inserting ``2013''.
(B) Conforming amendment.--Subparagraph (C) of section
179(f)(4) is amended--
(i) in the heading, by striking ``2010'' and inserting
``2010, 2011 and 2012'', and
(ii) by adding at the end the following: ``For the last
taxable year beginning in 2013, the amount determined under
subsection (b)(3)(A) for such taxable year shall be
determined without regard to this paragraph.''.
(e) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2011.
SEC. 316. EXTENSION OF ELECTION TO EXPENSE MINE SAFETY
EQUIPMENT.
(a) In General.--Subsection (g) of section 179E is amended
by striking ``December 31, 2011'' and inserting ``December
31, 2013''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2011.
SEC. 317. EXTENSION OF SPECIAL EXPENSING RULES FOR CERTAIN
FILM AND TELEVISION PRODUCTIONS.
(a) In General.--Subsection (f) of section 181 is amended
by striking ``December 31, 2011'' and inserting ``December
31, 2013''.
(b) Effective Date.--The amendment made by this section
shall apply to productions commencing after December 31,
2011.
SEC. 318. 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 6 taxable years'' and inserting
``first 8 taxable years'', and
(2) by striking ``January 1, 2012'' and inserting ``January
1, 2014''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2011.
SEC. 319. 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, 2011'' and inserting
``December 31, 2013''.
(b) Effective Date.--The amendment made by this section
shall apply to payments received or accrued after December
31, 2011.
SEC. 320. 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,
2011'' and inserting ``December 31, 2013''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2011.
SEC. 321. 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, 2011'' and inserting
``December 31, 2013''.
(b) Effective Date.--
(1) In general.--The amendment made by subsection (a) shall
take effect on January 1, 2012. 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, 2011, 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. 322. 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, 2012'' and inserting ``January
1, 2014'', and
(2) by striking ``December 31, 2011'' and inserting
``December 31, 2013''.
(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, 2012''
and inserting ``January 1, 2014''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years of foreign corporations
beginning after December 31, 2011, and to taxable years of
United States shareholders with or within which any such
taxable year of such foreign corporation ends.
SEC. 323. 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, 2012'' and inserting
``January 1, 2014''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years of foreign corporations
beginning after December 31, 2011, and to taxable years of
United States shareholders with or within which such taxable
years of foreign corporations end.
SEC. 324. 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, 2012'' and inserting ``January
1, 2014'', and
[[Page H7542]]
(2) by striking ``and 2011'' and inserting ``, 2011, 2012,
and 2013'' in the heading thereof.
(b) Technical Amendments.--
(1) Special rule for 2009 and certain period in 2010.--
Paragraph (3) of section 1202(a) is amended by adding at the
end the following new flush sentence:
``In the case of any stock which would be described in the
preceding sentence (but for this sentence), the acquisition
date for purposes of this subsection shall be the first day
on which such stock was held by the taxpayer determined after
the application of section 1223.''.
(2) 100 percent exclusion.--Paragraph (4) of section
1202(a) is amended by adding at the end the following new
flush sentence:
``In the case of any stock which would be described in the
preceding sentence (but for this sentence), the acquisition
date for purposes of this subsection shall be the first day
on which such stock was held by the taxpayer determined after
the application of section 1223.''.
(c) Effective Dates.--
(1) In general.--The amendments made by subsection (a)
shall apply to stock acquired after December 31, 2011.
(2) Subsection (b)(1).--The amendment made by subsection
(b)(1) shall take effect as if included in section 1241(a) of
division B of the American Recovery and Reinvestment Act of
2009.
(3) Subsection (b)(2).--The amendment made by subsection
(b)(2) shall take effect as if included in section 2011(a) of
the Creating Small Business Jobs Act of 2010.
SEC. 325. 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, 2011'' and inserting
``December 31, 2013''.
(b) Effective Date.--The amendment made by this section
shall apply to contributions made in taxable years beginning
after December 31, 2011.
SEC. 326. EXTENSION OF REDUCTION IN S-CORPORATION RECOGNITION
PERIOD FOR BUILT-IN GAINS TAX.
(a) In General.--Paragraph (7) of section 1374(d) is
amended--
(1) by redesignating subparagraph (C) as subparagraph (D),
and
(2) by inserting after subparagraph (B) the following new
subparagraph:
``(C) Special rule for 2012 and 2013.--For purposes of
determining the net recognized built-in gain for taxable
years beginning in 2012 or 2013, subparagraphs (A) and (D)
shall be applied by substituting `5-year' for `10-year'.'',
and
(3) by adding at the end the following new subparagraph:
``(E) Installment sales.--If an S corporation sells an
asset and reports the income from the sale using the
installment method under section 453, the treatment of all
payments received shall be governed by the provisions of this
paragraph applicable to the taxable year in which such sale
was made.''.
(b) Technical Amendment.--Subparagraph (B) of section
1374(d)(2) is amended by inserting ``described in
subparagraph (A)'' after ``, for any taxable year''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2011.
SEC. 327. EXTENSION OF EMPOWERMENT ZONE TAX INCENTIVES.
(a) In General.--Clause (i) of section 1391(d)(1)(A) is
amended by striking ``December 31, 2011'' and inserting
``December 31, 2013''.
(b) Increased Exclusion of Gain on Stock of Empowerment
Zone Businesses.--Subparagraph (C) of section 1202(a)(2) is
amended--
(1) by striking ``December 31, 2016'' and inserting
``December 31, 2018''; and
(2) by striking ``2016'' in the heading and inserting
``2018''.
(c) 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.
(d) Effective Date.--The amendments made by this section
shall apply to periods after December 31, 2011.
SEC. 328. EXTENSION OF TAX-EXEMPT FINANCING FOR NEW YORK
LIBERTY ZONE.
(a) In General.--Subparagraph (D) of section 1400L(d)(2) is
amended by striking ``January 1, 2012'' and inserting
``January 1, 2014''.
(b) Effective Date.--The amendment made by this section
shall apply to bonds issued after December 31, 2011.
SEC. 329. 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, 2012'' and inserting
``January 1, 2014''.
(b) Effective Date.--The amendment made by this section
shall apply to distilled spirits brought into the United
States after December 31, 2011.
SEC. 330. MODIFICATION AND EXTENSION OF AMERICAN SAMOA
ECONOMIC DEVELOPMENT CREDIT.
(a) Modification.--
(1) In general.--Subsection (a) of section 119 of division
A of the Tax Relief and Health Care Act of 2006 is amended by
striking ``if such corporation'' and all that follows and
inserting ``if--
``(1) in the case of a taxable year beginning before
January 1, 2012, such corporation--
``(A) is an existing credit claimant with respect to
American Samoa, and
``(B) elected the application of section 936 of the
Internal Revenue Code of 1986 for its last taxable year
beginning before January 1, 2006, and
``(2) in the case of a taxable year beginning after
December 31, 2011, such corporation meets the requirements of
subsection (e).''.
(2) Requirements.--Section 119 of division A of such Act is
amended by adding at the end the following new subsection:
``(e) Qualified Production Activities Income Requirement.--
A corporation meets the requirement of this subsection if
such corporation has qualified production activities income,
as defined in subsection (c) of section 199 of the Internal
Revenue Code of 1986, determined by substituting `American
Samoa' for `the United States' each place it appears in
paragraphs (3), (4), and (6) of such subsection (c), for the
taxable year.''.
(b) Extension.--Subsection (d) of section 119 of division A
of the Tax Relief and Health Care Act of 2006 is amended by
striking ``shall apply'' and all that follows and inserting
``shall apply--
``(1) in the case of a corporation that meets the
requirements of subparagraphs (A) and (B) of subsection
(a)(1), to the first 8 taxable years of such corporation
which begin after December 31, 2006, and before January 1,
2014, and
``(2) in the case of a corporation that does not meet the
requirements of subparagraphs (A) and (B) of subsection
(a)(1), to the first 2 taxable years of such corporation
which begin after December 31, 2011, and before January 1,
2014.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2011.
SEC. 331. EXTENSION AND MODIFICATION OF BONUS DEPRECIATION.
(a) In General.--Paragraph (2) of section 168(k) is
amended--
(1) by striking ``January 1, 2014'' in subparagraph (A)(iv)
and inserting ``January 1, 2015'', and
(2) by striking ``January 1, 2013'' each place it appears
and inserting ``January 1, 2014''.
(b) Special Rule for Federal Long-term Contracts.--Clause
(ii) of section 460(c)(6)(B) is amended by inserting ``, or
after December 31, 2012, and before January 1, 2014 (January
1, 2015, in the case of property described in section
168(k)(2)(B))'' before the period.
(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 ``2013'' and
inserting ``2014''.
(2) Round 3 extension property.--Paragraph (4) of section
168(k) is amended by adding at the end the following new
subparagraph:
``(J) Special rules for round 3 extension property.--
``(i) In general.--In the case of round 3 extension
property, this paragraph shall be applied without regard to--
``(I) the limitation described in subparagraph (B)(i)
thereof, and
``(II) the business credit increase amount under
subparagraph (E)(iii) thereof.
``(ii) Taxpayers previously electing acceleration.--In the
case of a taxpayer who made the election under subparagraph
(A) for its first taxable year ending after March 31, 2008, a
taxpayer who made the election under subparagraph (H)(ii) for
its first taxable year ending after December 31, 2008, or a
taxpayer who made the election under subparagraph (I)(iii)
for its first taxable year ending after December 31, 2010--
``(I) the taxpayer may elect not to have this paragraph
apply to round 3 extension property, but
``(II) if the taxpayer does not make the election under
subclause (I), in applying this paragraph to the taxpayer the
bonus depreciation amount, maximum amount, and maximum
increase amount shall be computed and applied to eligible
qualified property which is round 3 extension property.
The amounts described in subclause (II) shall be computed
separately from any amounts computed with respect to eligible
qualified property which is not round 3 extension property.
``(iii) Taxpayers not previously electing acceleration.--In
the case of a taxpayer who neither made the election under
subparagraph (A) for its first taxable year ending after
March 31, 2008, nor made the election under subparagraph
(H)(ii) for its first taxable year ending after December 31,
2008, nor made the election under subparagraph (I)(iii) for
any taxable year ending after December 31, 2010--
``(I) the taxpayer may elect to have this paragraph apply
to its first taxable year ending after December 31, 2012, and
each subsequent taxable year, and
``(II) if the taxpayer makes the election under subclause
(I), this paragraph shall only apply to eligible qualified
property which is round 3 extension property.
``(iv) Round 3 extension property.--For purposes of this
subparagraph, the term `round 3 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 331(a) of the American Taxpayer Relief Act of 2012
(and the application of such extension to this paragraph
pursuant to the amendment made by section 331(c)(1) of such
Act).''.
(d) Normalization Rules Amendment.--Clause (ii) of section
168(i)(9)(A) is amended by inserting ``(respecting all
elections made by the
[[Page H7543]]
taxpayer under this section)'' after ``such property''.
(e) Conforming Amendments.--
(1) The heading for subsection (k) of section 168 is
amended by striking ``January 1, 2013'' and inserting
``January 1, 2014''.
(2) The heading for clause (ii) of section 168(k)(2)(B) is
amended by striking ``pre-january 1, 2013'' and inserting
``pre-january 1, 2014''.
(3) Subparagraph (C) of section 168(n)(2) is amended by
striking ``January 1, 2013'' and inserting ``January 1,
2014''.
(4) Subparagraph (D) of section 1400L(b)(2) is amended by
striking ``January 1, 2013'' and inserting ``January 1,
2014''.
(5) Subparagraph (B) of section 1400N(d)(3) is amended by
striking ``January 1, 2013'' and inserting ``January 1,
2014''.
(f) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2012, in taxable years ending after such date.
TITLE IV--ENERGY TAX EXTENDERS
SEC. 401. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT EXISTING
HOMES.
(a) In General.--Paragraph (2) of section 25C(g) is amended
by striking ``December 31, 2011'' and inserting ``December
31, 2013''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2011.
SEC. 402. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL VEHICLE
REFUELING PROPERTY.
(a) In General.--Paragraph (2) of section 30C(g) is amended
by striking ``December 31, 2011.'' and inserting ``December
31, 2013''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2011.
SEC. 403. EXTENSION OF CREDIT FOR 2- OR 3-WHEELED PLUG-IN
ELECTRIC VEHICLES.
(a) In General.--Section 30D is amended by adding at the
end the following new subsection:
``(g) Credit Allowed for 2- and 3-wheeled Plug-in Electric
Vehicles.--
``(1) In general.--In the case of a qualified 2- or 3-
wheeled plug-in electric vehicle--
``(A) there shall be allowed as a credit against the tax
imposed by this chapter for the taxable year an amount equal
to the sum of the applicable amount with respect to each such
qualified 2- or 3-wheeled plug-in electric vehicle placed in
service by the taxpayer during the taxable year, and
``(B) the amount of the credit allowed under subparagraph
(A) shall be treated as a credit allowed under subsection
(a).
``(2) Applicable amount.--For purposes of paragraph (1),
the applicable amount is an amount equal to the lesser of--
``(A) 10 percent of the cost of the qualified 2- or 3-
wheeled plug-in electric vehicle, or
``(B) $2,500.
``(3) Qualified 2- or 3-wheeled plug-in electric vehicle.--
The term `qualified 2- or 3-wheeled plug-in electric vehicle'
means any vehicle which--
``(A) has 2 or 3 wheels,
``(B) meets the requirements of subparagraphs (A), (B),
(C), (E), and (F) of subsection (d)(1) (determined by
substituting `2.5 kilowatt hours' for `4 kilowatt hours' in
subparagraph (F)(i)),
``(C) is manufactured primarily for use on public streets,
roads, and highways,
``(D) is capable of achieving a speed of 45 miles per hour
or greater, and
``(E) is acquired after December 31, 2011, and before
January 1, 2014.''.
(b) Conforming Amendments.--
(1) No double benefit.--Paragraph (2) of section 30D(f) is
amended--
(A) by striking ``new qualified plug-in electric drive
motor vehicle'' and inserting ``vehicle for which a credit is
allowable under subsection (a)'', and
(B) by striking ``allowed under subsection (a)'' and
inserting ``allowed under such subsection''.
(2) Air quality and safety standards.--Section 30D(f)(7) is
amended by striking ``motor vehicle'' and inserting
``vehicle''.
(c) Effective Date.--The amendments made by this section
shall apply to vehicles acquired after December 31, 2011.
SEC. 404. EXTENSION AND MODIFICATION OF CELLULOSIC BIOFUEL
PRODUCER CREDIT.
(a) Extension.--
(1) In general.--Subparagraph (H) of section 40(b)(6) is
amended to read as follows:
``(H) Application of paragraph.--
``(i) In general.--This paragraph shall apply with respect
to qualified cellulosic biofuel production after December 31,
2008, and before January 1, 2014.
``(ii) No carryover to certain years after expiration.--If
this paragraph ceases to apply for any period by reason of
clause (i), rules similar to the rules of subsection (e)(2)
shall apply.''.
(2) Conforming amendment.--Paragraph (2) of section 40(e)
is amended by striking ``or subsection (b)(6)(H)''.
(3) Effective date.--The amendments made by this subsection
shall take effect as if included in section 15321(b) of the
Heartland, Habitat, and Horticulture Act of 2008.
(b) Algae Treated as a Qualified Feedstock.--
(1) In general.--Subclause (I) of section 40(b)(6)(E)(i) is
amended to read as follows:
``(I) is derived by, or from, qualified feedstocks, and''.
(2) Qualified feedstock; special rules for algae.--
Paragraph (6) of section 40(b) is amended by redesignating
subparagraphs (F), (G), and (H), as amended by this Act, as
subparagraphs (H), (I), and (J), respectively, and by
inserting after subparagraph (E) the following new
subparagraphs:
``(F) Qualified feedstock.--For purposes of this paragraph,
the term `qualified feedstock' means--
``(i) any lignocellulosic or hemicellulosic matter that is
available on a renewable or recurring basis, and
``(ii) any cultivated algae, cyanobacteria, or lemna.
``(G) Special rules for algae.--In the case of fuel which
is derived by, or from, feedstock described in subparagraph
(F)(ii) and which is sold by the taxpayer to another person
for refining by such other person into a fuel which meets the
requirements of subparagraph (E)(i)(II) and the refined fuel
is not excluded under subparagraph (E)(iii)--
``(i) such sale shall be treated as described in
subparagraph (C)(i),
``(ii) such fuel shall be treated as meeting the
requirements of subparagraph (E)(i)(II) and as not being
excluded under subparagraph (E)(iii) in the hands of such
taxpayer, and
``(iii) except as provided in this subparagraph, such fuel
(and any fuel derived from such fuel) shall not be taken into
account under subparagraph (C) with respect to the taxpayer
or any other person.''.
(3) Conforming amendments.--
(A) Section 40, as amended by paragraph (2), is amended--
(i) by striking ``cellulosic biofuel'' each place it
appears in the text thereof and inserting ``second generation
biofuel'',
(ii) by striking ``Cellulosic'' in the headings of
subsections (b)(6), (b)(6)(E), and (d)(3)(D) and inserting
``Second generation'', and
(iii) by striking ``cellulosic'' in the headings of
subsections (b)(6)(C), (b)(6)(D), (b)(6)(H), (d)(6), and
(e)(3) and inserting ``second generation''.
(B) Clause (ii) of section 40(b)(6)(E) is amended by
striking ``Such term shall not'' and inserting ``The term
`second generation biofuel' shall not''.
(C) Paragraph (1) of section 4101(a) is amended by striking
``cellulosic biofuel'' and inserting ``second generation
biofuel''.
(4) Effective date.--The amendments made by this subsection
shall apply to fuels sold or used after the date of the
enactment of this Act.
SEC. 405. EXTENSION OF INCENTIVES FOR BIODIESEL AND RENEWABLE
DIESEL.
(a) Credits for Biodiesel and Renewable Diesel Used as
Fuel.--Subsection (g) of section 40A is amended by striking
``December 31, 2011'' and inserting ``December 31, 2013''.
(b) Excise Tax Credits and Outlay Payments for Biodiesel
and Renewable Diesel Fuel Mixtures.--
(1) Paragraph (6) of section 6426(c) is amended by striking
``December 31, 2011'' and inserting ``December 31, 2013''.
(2) Subparagraph (B) of section 6427(e)(6) is amended by
striking ``December 31, 2011'' and inserting ``December 31,
2013''.
(c) Effective Date.--The amendments made by this section
shall apply to fuel sold or used after December 31, 2011.
SEC. 406. 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 ``7-year period'' each place it appears
and inserting ``8-year period''.
(b) Effective Date.--The amendment made by this section
shall apply to coal produced after December 31, 2012.
SEC. 407. EXTENSION AND MODIFICATION OF CREDITS WITH RESPECT
TO FACILITIES PRODUCING ENERGY FROM CERTAIN
RENEWABLE RESOURCES.
(a) Production Tax Credit.--
(1) Extension for wind facilities.--Paragraph (1) of
section 45(d) is amended by striking ``January 1, 2013'' and
inserting ``January 1, 2014''.
(2) Exclusion of paper which is commonly recycled from
definition of municipal solid waste.--Section 45(c)(6) is
amended by inserting ``, except that such term does not
include paper which is commonly recycled and which has been
segregated from other solid waste (as so defined)'' after
``(42 U.S.C. 6903)''.
(3) Modification to definition of qualified facility.--
(A) In general.--The following provisions of section 45(d),
as amended by paragraph (1), are each amended by striking
``before January 1, 2014'' and inserting ``the construction
of which begins before January 1, 2014'':
(i) Paragraph (1).
(ii) Paragraph (2)(A)(i).
(iii) Paragraph (3)(A)(i)(I).
(iv) Paragraph (6).
(v) Paragraph (7).
(vi) Paragraph (9)(B).
(vii) Paragraph (11)(B).
(B) Certain closed-loop biomass facilities.--Subparagraph
(A) of section 45(d)(2) is amended by adding at the end the
following new flush sentence:
``For purposes of clause (ii), a facility shall be treated as
modified before January 1, 2014, if the construction of such
modification begins before such date.''.
(C) Certain open-loop biomass facilities.--Clause (ii) of
section 45(d)(3)(A) is amended by striking ``is originally
placed in service'' and inserting ``the construction of which
begins''.
(D) Geothermal facilities.--
(i) In general.--Paragraph (4) of section 45(d) is amended
by striking ``and before January 1, 2014'' and all that
follows and inserting ``and which--
``(A) in the case of a facility using solar energy, is
placed in service before January 1, 2006, or
``(B) in the case of a facility using geothermal energy,
the construction of which begins before January 1, 2014.
Such term shall not include any property described in section
48(a)(3) the basis of which is
[[Page H7544]]
taken into account by the taxpayer for purposes of
determining the energy credit under section 48.''.
(E) Incremental hydropower production.--Paragraph (9) of
section 45(d) is amended--
(i) by redesignating subparagraphs (A) and (B), as amended
by subparagraph (A), as clauses (i) and (ii), respectively,
and by moving such clauses (as so redesignated) 2 ems to the
right,
(ii) by striking ``In the case of a facility'' and
inserting the following:
``(A) In general.--In the case of a facility'',
(iii) by redesignating subparagraph (C) as subparagraph
(B), and
(iv) by adding at the end the following new subparagraph:
``(C) Special rule.--For purposes of subparagraph (A)(i),
an efficiency improvement or addition to capacity shall be
treated as placed in service before January 1, 2014, if the
construction of such improvement or addition begins before
such date.''.
(b) Extension of Election to Treat Qualified Facilities as
Energy Property.--Subparagraph (C) of section 48(a)(5) is
amended to read as follows:
``(C) Qualified investment credit facility.--For purposes
of this paragraph, the term `qualified investment credit
facility' means any facility--
``(i) which is a qualified facility (within the meaning of
section 45) described in paragraph (1), (2), (3), (4), (6),
(7), (9), or (11) of section 45(d),
``(ii) which is placed in service after 2008 and the
construction of which begins before January 1, 2014, and
``(iii) with respect to which--
``(I) no credit has been allowed under section 45, and
``(II) the taxpayer makes an irrevocable election to have
this paragraph apply.''.
(c) Technical Corrections.--
(1) Subparagraph (D) of section 48(a)(5) is amended--
(A) by striking ``and'' at the end of clause (i)(II),
(B) by striking the period at the end of clause (ii) and
inserting a comma, and
(C) by adding at the end the following new clauses:
``(iii) which is constructed, reconstructed, erected, or
acquired by the taxpayer, and
``(iv) the original use of which commences with the
taxpayer.''.
(2) Paragraphs (1) and (2) of subsection (a) of section
1603 of division B of the American Recovery and Reinvestment
Act of 2009 are each amended by striking ``placed in
service'' and inserting ``originally placed in service by
such person''.
(d) Effective Dates.--
(1) In general.--Except as provided in paragraphs (2) and
(3), the amendments made by this section shall take effect on
the date of the enactment of this Act.
(2) Modification to definition of municipal solid waste.--
The amendments made by subsection (a)(2) shall apply to
electricity produced and sold after the date of the enactment
of this Act, in taxable years ending after such date.
(3) Technical corrections.--The amendments made by
subsection (c) shall apply as if included in the enactment of
the provisions of the American Recovery and Reinvestment Act
of 2009 to which they relate.
SEC. 408. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT NEW HOMES.
(a) In General.--Subsection (g) of section 45L is amended
by striking ``December 31, 2011'' and inserting ``December
31, 2013''.
(b) Energy Savings Requirements.--Clause (i) of section
45L(c)(1)(A) is amended by striking ``2003 International
Energy Conservation Code, as such Code (including
supplements) is in effect on the date of the enactment of
this section''and inserting ``2006 International Energy
Conservation Code, as such Code (including supplements) is in
effect on January 1, 2006''.
(c) Effective Date.--The amendments made by this section
shall apply to homes acquired after December 31, 2011.
SEC. 409. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT
APPLIANCES.
(a) In General.--Section 45M(b) is amended by striking
``2011'' each place it appears other than in the provisions
specified in subsection (b) and inserting ``2011, 2012, or
2013''.
(b) Provisions Specified.--The provisions of section 45M(b)
specified in this subsection are subparagraph (C) of
paragraph (1) and subparagraph (E) of paragraph (2).
(c) Effective Date.--The amendments made by this section
shall apply to appliances produced after December 31, 2011.
SEC. 410. EXTENSION AND MODIFICATION OF SPECIAL ALLOWANCE FOR
CELLULOSIC BIOFUEL PLANT PROPERTY.
(a) Extension.--
(1) In general.--Subparagraph (D) of section 168(l)(2) is
amended by striking ``January 1, 2013'' and inserting
``January 1, 2014''.
(2) Effective date.--The amendment made by this subsection
shall apply to property placed in service after December 31,
2012.
(b) Algae Treated as a Qualified Feedstock for Purposes of
Bonus Depreciation for Biofuel Plant Property.--
(1) In general.--Subparagraph (A) of section 168(l)(2) is
amended by striking ``solely to produce cellulosic biofuel''
and inserting ``solely to produce second generation biofuel
(as defined in section 40(b)(6)(E))''.
(2) Conforming amendments.--Subsection (l) of section 168,
as amended by subsection (a), is amended--
(A) by striking ``cellulosic biofuel'' each place it
appears in the text thereof and inserting ``second generation
biofuel'',
(B) by striking paragraph (3) and redesignating paragraphs
(4) through (8) as paragraphs (3) through (7), respectively,
(C) by striking ``Cellulosic'' in the heading of such
subsection and inserting ``Second Generation'', and
(D) by striking ``cellulosic'' in the heading of paragraph
(2) and inserting ``second generation''.
(3) Effective date.--The amendments made by this subsection
shall apply to property placed in service after the date of
the enactment of this Act.
SEC. 411. 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, 2012'' and inserting ``January 1,
2014''.
(b) Effective Date.--The amendment made by this section
shall apply to dispositions after December 31, 2011.
SEC. 412. EXTENSION OF ALTERNATIVE FUELS EXCISE TAX CREDITS.
(a) In General.--Sections 6426(d)(5) and 6426(e)(3) are
each amended by striking ``December 31, 2011'' and inserting
``December 31, 2013''.
(b) Outlay Payments for Alternative Fuels.--Paragraph (6)
of section 6427(e) is amended--
(1) in subparagraph (C)--
(A) by striking ``or alternative fuel mixture (as defined
in subsection (d)(2) or (e)(3) of section 6426)'' and
inserting ``(as defined in section 6426(d)(2))'', and
(B) by striking ``December 31, 2011, and'' and inserting
``December 31, 2013,'',
(2) in subparagraph (D)--
(A) by striking ``or alternative fuel mixture'', and
(B) by striking the period at the end and inserting ``,
and'', and
(3) by adding at the end the following new subparagraph:
``(E) any alternative fuel mixture (as defined in section
6426(e)(2)) sold or used after December 31, 2011.''.
(c) Effective Date.--The amendments made by this section
shall apply to fuel sold or used after December 31, 2011.
TITLE V--UNEMPLOYMENT
SEC. 501. EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION
PROGRAM.
(a) Extension.--Section 4007(a)(2) of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note) is amended by striking ``January 2, 2013'' and
inserting ``January 1, 2014''.
(b) Funding.--Section 4004(e)(1) of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note) is amended--
(1) in subparagraph (H), by striking ``and'' at the end;
and
(2) by inserting after subparagraph (I) the following:
``(J) the amendments made by section 501(a) of the American
Taxpayer Relief Act of 2012;''.
(c) Effective Date.--The amendments made by this section
shall take effect as if included in the enactment of the
Unemployment Benefits Extension Act of 2012 (Public Law 112-
96)
SEC. 502. TEMPORARY EXTENSION OF EXTENDED BENEFIT PROVISIONS.
(a) In General.--Section 2005 of the Assistance for
Unemployed Workers and Struggling Families Act, as contained
in Public Law 111-5 (26 U.S.C. 3304 note), is amended--
(1) by striking ``December 31, 2012'' each place it appears
and inserting ``December 31, 2013''; and
(2) in subsection (c), by striking ``June 30, 2013'' and
inserting ``June 30, 2014''.
(b) Extension of Matching for States With No Waiting
Week.--Section 5 of the Unemployment Compensation Extension
Act of 2008 (Public Law 110-449; 26 U.S.C. 3304 note) is
amended by striking ``June 30, 2013'' and inserting ``June
30, 2014''.
(c) Extension of Modification of Indicators Under the
Extended Benefit Program.--Section 203 of the Federal-State
Extended Unemployment Compensation Act of 1970 (26 U.S.C.
3304 note) is amended--
(1) in subsection (d), by striking ``December 31, 2012''
and inserting ``December 31, 2013''; and
(2) in subsection (f)(2), by striking ``December 31, 2012''
and inserting ``December 31, 2013''.
(d) Effective Date.--The amendments made by this section
shall take effect as if included in the enactment of the
Unemployment Benefits Extension Act of 2012 (Public Law 112-
96).
SEC. 503. EXTENSION OF FUNDING FOR REEMPLOYMENT SERVICES AND
REEMPLOYMENT AND ELIGIBILITY ASSESSMENT
ACTIVITIES.
(a) In General.--Section 4004(c)(2)(A) of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note) is amended by striking ``through fiscal year 2013'' and
inserting ``through fiscal year 2014''.
(b) Effective Date.--The amendments made by this section
shall take effect as if included in the enactment of the
Unemployment Benefits Extension Act of 2012 (Public Law 112-
96).
SEC. 504. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER THE
RAILROAD UNEMPLOYMENT INSURANCE ACT.
(a) Extension.--Section 2(c)(2)(D)(iii) of the Railroad
Unemployment Insurance Act, as added by section 2006 of the
American Recovery and Reinvestment Act of 2009 (Public Law
111-5) and as amended by section 9 of the Worker,
Homeownership, and Business Assistance Act of 2009 (Public
Law 111-92), section 505 of the Tax Relief, Unemployment
Insurance Reauthorization, and Job Creation Act of 2010
(Public Law
[[Page H7545]]
111-312), section 202 of the Temporary Payroll Tax Cut
Continuation Act of 2011 (Public Law 112-78), and section
2124 of the Unemployment Benefits Extension Act of 2012
(Public Law 112-96), is amended--
(1) by striking ``June 30, 2012'' and inserting ``June 30,
2013''; and
(2) by striking ``December 31, 2012'' and inserting
``December 31, 2013''.
(b) Clarification on Authority to Use Funds.--Funds
appropriated under either the first or second sentence of
clause (iv) of section 2(c)(2)(D) of the Railroad
Unemployment Insurance Act shall be available to cover the
cost of additional extended unemployment benefits provided
under such section 2(c)(2)(D) by reason of the amendments
made by subsection (a) as well as to cover the cost of such
benefits provided under such section 2(c)(2)(D), as in effect
on the day before the date of enactment of this Act.
(c) Funding for Administration.--Out of any funds in the
Treasury not otherwise appropriated, there are appropriated
to the Railroad Retirement Board $250,000 for administrative
expenses associated with the payment of additional extended
unemployment benefits provided under section 2(c)(2)(D) of
the Railroad Unemployment Insurance Act by reason of the
amendments made by subsection (a), to remain available until
expended.
TITLE VI--MEDICARE AND OTHER HEALTH EXTENSIONS
Subtitle A--Medicare Extensions
SEC. 601. MEDICARE PHYSICIAN PAYMENT UPDATE.
(a) In General.--Section 1848(d) of the Social Security Act
(42 U.S.C. 1395w-4(d)) is amended by adding at the end the
following new paragraph:
``(14) Update for 2013.--
``(A) In general.--Subject to paragraphs (7)(B), (8)(B),
(9)(B), (10)(B), (11)(B), (12)(B), and (13)(B), in lieu of
the update to the single conversion factor established in
paragraph (1)(C) that would otherwise apply for 2013, the
update to the single conversion factor for such year shall be
zero percent.
``(B) No effect on computation of conversion factor for
2014 and subsequent years.--The conversion factor under this
subsection shall be computed under paragraph (1)(A) for 2014
and subsequent years as if subparagraph (A) had never
applied.''.
(b) Advancement of Clinical Data Registries To Improve the
Quality of Health Care.--
(1) In general.--Section 1848(m)(3) of the Social Security
Act (42 U.S.C. 1395w-4(m)(3)) is amended--
(A) by redesignating subparagraph (D) as subparagraph (F);
and
(B) by inserting after subparagraph (C) the following new
subparagraphs:
``(D) Satisfactory reporting measures through participation
in a qualified clinical data registry.--For 2014 and
subsequent years, the Secretary shall treat an eligible
professional as satisfactorily submitting data on quality
measures under subparagraph (A) if, in lieu of reporting
measures under subsection (k)(2)(C), the eligible
professional is satisfactorily participating, as determined
by the Secretary, in a qualified clinical data registry (as
described in subparagraph (E)) for the year.
``(E) Qualified clinical data registry.--
``(i) In general.--The Secretary shall establish
requirements for an entity to be considered a qualified
clinical data registry. Such requirements shall include a
requirement that the entity provide the Secretary with such
information, at such times, and in such manner, as the
Secretary determines necessary to carry out this subsection.
``(ii) Considerations.--In establishing the requirements
under clause (i), the Secretary shall consider whether an
entity--
``(I) has in place mechanisms for the transparency of data
elements and specifications, risk models, and measures;
``(II) requires the submission of data from participants
with respect to multiple payers;
``(III) provides timely performance reports to participants
at the individual participant level; and
``(IV) supports quality improvement initiatives for
participants.
``(iii) Measures.--With respect to measures used by a
qualified clinical data registry--
``(I) sections 1890(b)(7) and 1890A(a) shall not apply; and
``(II) measures endorsed by the entity with a contract with
the Secretary under section 1890(a) may be used.
``(iv) Consultation.--In carrying out this subparagraph,
the Secretary shall consult with interested parties.
``(v) Determination.--The Secretary shall establish a
process to determine whether or not an entity meets the
requirements established under clause (i). Such process may
involve one or both of the following:
``(I) A determination by the Secretary.
``(II) A designation by the Secretary of one or more
independent organizations to make such determination.''.
(2) GAO study and report on incorporating registry data
into the medicare program in order to improve quality and
efficiency.--
(A) Study.--The Comptroller General of the United States
shall conduct a study on the potential of clinical data
registries to improve the quality and efficiency of care in
the Medicare program, including through payment system
incentives. Such study shall include an analysis of the role
of health information technology in facilitating clinical
data registries and the use of data from such registries
among private health insurers as well as other entities the
Comptroller General determines appropriate.
(B) Report.--Not later than November 15, 2013, the
Comptroller General of the United States shall submit to
Congress a report on the study conducted under subparagraph
(A), together with recommendations for such legislation and
administrative action as the Comptroller General determines
appropriate.
SEC. 602. WORK GEOGRAPHIC ADJUSTMENT.
Section 1848(e)(1)(E) of the Social Security Act (42 U.S.C.
1395w-4(e)(1)(E)) is amended by striking ``before January 1,
2013'' and inserting ``before January 1, 2014''.
SEC. 603. PAYMENT FOR OUTPATIENT THERAPY SERVICES.
(a) Extension.--Section 1833(g) of the Social Security Act
(42 U.S.C. 1395l(g)) is amended--
(1) in paragraph (5)(A), in the first sentence, by striking
``December 31, 2012'' and inserting ``December 31, 2013'';
and
(2) in paragraph (6)--
(A) by striking ``December 31, 2012'' and inserting
``December 31, 2013''; and
(B) by inserting ``or 2013'' after ``during 2012''.
(b) Application of Therapy Cap to Therapy Furnished as Part
of Outpatient Critical Access Hospital Services.--Section
1833(g)(6) of the Social Security Act (42 U.S.C.
1395l(g)(6)), as amended by subsection (a), is amended--
(1) by striking ``In applying'' and inserting ``(A) In
applying''; and
(2) by adding at the end the following new subparagraph:
``(B)(i) With respect to outpatient therapy services
furnished beginning on or after January 1, 2013, and before
January 1, 2014, for which payment is made under section
1834(g), the Secretary shall count toward the uniform dollar
limitations described in paragraphs (1) and (3) and the
threshold described in paragraph (5)(C) the amount that would
be payable under this part if such services were paid under
section 1834(k)(1)(B) instead of being paid under section
1834(g).
``(ii) Nothing in clause (i) shall be construed as changing
the method of payment for outpatient therapy services under
section 1834(g).''.
(c) Beneficiary Protections.--Section 1833(g)(5) of the
Social Security Act (42 U.S.C. 1395l(g)(5)) is amended by
adding at the end the following new subparagraph:
``(D) With respect to services furnished on or after
January 1, 2013, where payment may not be made as a result of
application of paragraphs (1) and (3), section 1879 shall
apply in the same manner as such section applies to a denial
that is made by reason of section 1862(a)(1).''.
(d) Implementation.--Notwithstanding any other provision of
law, the Secretary of Health and Human Services may implement
the provisions of, and the amendments made by, this section
by program instruction or otherwise.
SEC. 604. AMBULANCE ADD-ON PAYMENTS.
(a) Ground Ambulance.--Section 1834(l)(13)(A) of the Social
Security Act (42 U.S.C. 1395m(l)(13)(A)) is amended--
(1) in the matter preceding clause (i), by striking
``January 1, 2013'' and inserting ``January 1, 2014''; and
(2) in each of clauses (i) and (ii), by striking ``January
1, 2013'' and inserting ``January 1, 2014'' each place it
appears.
(b) Air Ambulance.--Section 146(b)(1) of the Medicare
Improvements for Patients and Providers Act of 2008 (Public
Law 110-275), as amended by sections 3105(b) and 10311(b) of
the Patient Protection and Affordable Care Act (Public Law
111-148), section 106(b) of the Medicare and Medicaid
Extenders Act of 2010 (Public Law 111-309), section 306(b) of
the Temporary Payroll Tax Cut Continuation Act of 2011
(Public Law 112-78), and section 3007(b) of the Middle Class
Tax Relief and Job Creation Act of 2012 (Public Law 112-96),
is amended by striking ``December 31, 2012'' and inserting
``June 30, 2013''.
(c) Super Rural Ambulance.--Section 1834(l)(12)(A) of the
Social Security Act (42 U.S.C. 1395m(l)(12)(A)) is amended in
the first sentence by striking ``January 1, 2013'' and
inserting ``January 1, 2014''.
(d) Studies of Ambulance Costs.--
(1) In general.--The Secretary of Health and Health and
Human Services (in this subsection referred to as the
``Secretary'') shall conduct a study of each of the
following:
(A) A study that analyzes data on existing cost reports for
ambulance services furnished by hospitals and critical access
hospitals, including variation by characteristics of such
providers of services.
(B) A study of the feasibility of obtaining cost data on a
periodic basis from all ambulance providers of services and
suppliers for potential use in examining the appropriateness
of the Medicare add-on payments for ground ambulance services
furnished under the fee schedule under section 1834(l) of the
Social Security Act (42 U.S.C. 1395m(l)) and in preparing for
future reform of such payment system.
(2) Components of one of the studies.--In conducting the
study under paragraph (1)(B), the Secretary shall--
(A) consult with industry on the design of such cost
collection efforts;
(B) explore use of cost surveys and cost reports to collect
appropriate cost data and the periodicity of such cost data
collection;
(C) examine the feasibility of development of a standard
cost reporting tool for providers of services and suppliers
of ground ambulance services; and
(D) examine the ability to furnish such cost data by
various types of ambulance providers of services and
suppliers, especially by rural and super-rural providers of
services and suppliers.
(3) Reports.--
(A) Existing cost reports.--Not later than October 1, 2013,
the Secretary shall submit a report to Congress on the study
conducted under paragraph (1)(A), together with
recommendations for such legislation and administrative
action as the Secretary determines appropriate.
(B) Obtaining cost data.--Not later than July 1, 2014, the
Secretary shall submit a report
[[Page H7546]]
to Congress on the study conducted under paragraph (1)(B),
together with recommendations for such legislation and
administrative action as the Secretary determines
appropriate.
SEC. 605. EXTENSION OF MEDICARE INPATIENT HOSPITAL PAYMENT
ADJUSTMENT FOR LOW-VOLUME HOSPITALS.
Section 1886(d)(12) of the Social Security Act (42 U.S.C.
1395ww(d)(12)) is amended--
(1) in subparagraph (B), in the matter preceding clause
(i), by striking ``2013'' and inserting ``2014'';
(2) in subparagraph (C)(i), by striking ``and 2012'' each
place it appears and inserting ``, 2012, and 2013''; and
(3) in subparagraph (D), by striking ``and 2012'' and
inserting ``, 2012, and 2013''.
SEC. 606. EXTENSION OF THE MEDICARE-DEPENDENT HOSPITAL (MDH)
PROGRAM.
(a) Extension of Payment Methodology.--Section
1886(d)(5)(G) of the Social Security Act (42 U.S.C.
1395ww(d)(5)(G)) is amended--
(1) in clause (i), by striking ``October 1, 2012'' and
inserting ``October 1, 2013''; and
(2) in clause (ii)(II), by striking ``October 1, 2012'' and
inserting ``October 1, 2013''.
(b) Conforming Amendments.--
(1) Extension of target amount.--Section 1886(b)(3)(D) of
the Social Security Act (42 U.S.C. 1395ww(b)(3)(D)) is
amended--
(A) in the matter preceding clause (i), by striking
``October 1, 2012'' and inserting ``October 1, 2013''; and
(B) in clause (iv), by striking ``through fiscal year
2012'' and inserting ``through fiscal year 2013''.
(2) Permitting hospitals to decline reclassification.--
Section 13501(e)(2) of the Omnibus Budget Reconciliation Act
of 1993 (42 U.S.C. 1395ww note) is amended by striking
``through fiscal year 2012'' and inserting ``through fiscal
year 2013''.
SEC. 607. EXTENSION FOR SPECIALIZED MEDICARE ADVANTAGE PLANS
FOR SPECIAL NEEDS INDIVIDUALS.
Section 1859(f)(1) of the Social Security Act (42 U.S.C.
1395w-28(f)(1)) is amended by striking ``2014'' and inserting
``2015''.
SEC. 608. EXTENSION OF MEDICARE REASONABLE COST CONTRACTS.
Section 1876(h)(5)(C)(ii) of the Social Security Act (42
U.S.C. 1395mm(h)(5)(C)(ii)) is amended, in the matter
preceding subclause (I), by striking ``January 1, 2013'' and
inserting ``January 1, 2014''.
SEC. 609. PERFORMANCE IMPROVEMENT.
(a) Extension of Funding for Contract With Consensus-based
Entity Regarding Performance Measurement.--
(1) In general.--Section 1890(d) of the Social Security Act
(42 U.S.C. 1395aaa(d)) is amended by striking ``fiscal years
2009 through 2012'' and inserting ``fiscal years 2009 through
2013''.
(2) Revision to duties.--Section 1890(b) of the Social
Security Act (42 U.S.C. 1395aaa(b)) is amended by striking
paragraph (4).
(b) Providing Data for Performance Improvement in a Timely
Manner.--
(1) In general.--The Secretary of Health and Human Services
(in this subsection referred to as the ``Secretary'') shall
develop a strategy to provide data for performance
improvement in a timely manner to applicable providers under
the Medicare program under title XVIII of the Social Security
Act (42 U.S.C. 1395 et seq.), including with respect to the
provision of the following:
(A) Utilization data, including such data for items and
services under parts A, B, and D of the Medicare program.
(B) Feedback on quality data submitted by the applicable
provider under the Medicare program.
(2) Considerations.--In developing the strategy under
paragraph (1), the Secretary shall consider--
(A) the type of applicable provider receiving the data;
(B) the frequency of providing the data so that it can be
the most relevant in improving provider performance;
(C) risk adjustment methods;
(D) presentation of the data in a meaningful manner and
easily understandable format;
(E) with respect to utilization data, the provision of data
that the Secretary determines would be useful to improve the
performance of the type of applicable provider involved; and
(F) administrative costs involved with providing data.
(3) Submission and availability of initial strategy.--Not
later than 1 year after the date of the enactment of this
Act, the Secretary shall--
(A) submit to the relevant committees of Congress the
strategy described in paragraph (1); and
(B) post such strategy on the website of the Centers for
Medicare & Medicaid Services.
(4) Strategy update.--
(A) Feedback from stakeholders.--The Secretary shall seek
feedback from stakeholders on the initial strategy submitted
under paragraph (3).
(B) Strategy update.--The Secretary shall--
(i) update the strategy described in paragraph (1) based on
the feedback submitted under subparagraph (A); and
(ii) not later than 18 months after the date of the
enactment of this Act--
(I) submit such updated strategy to the relevant committees
of Congress; and
(II) post such updated strategy on the website of the
Centers for Medicare & Medicaid Services.
(5) GAO study and report on private sector information
sharing activities.--
(A) Study.--The Comptroller General of the United States
(in this paragraph referred to as the ``Comptroller
General'') shall conduct a study on information sharing
activities. Such study shall include an analysis of--
(i) how private sector entities share timely data with
hospitals, physicians, and other providers and what lessons
can be learned from those activities;
(ii) how the Medicare program currently shares data with
providers, including what data is provided and to which
providers, and what divisions within the Centers for Medicare
& Medicaid Services oversee those efforts;
(iii) what, if any, differences there are between the
private sector and the Medicare program under title XVIII of
the Social Security Act (42 U.S.C. 1395 et seq.) in terms of
sharing data; and
(iv) what, if any, barriers there are for the Centers for
Medicare & Medicaid Services to sharing timely data with
applicable providers and recommendations to eliminate or
reduce such barriers.
(B) Report.--Not later than 8 months after the date of the
enactment of this Act, the Comptroller General shall submit
to the relevant committees of Congress a report containing
the results of the study conducted under subparagraph (A),
together with recommendations for such legislation and
administrative action as the Comptroller General determines
appropriate.
(6) Definitions.--In this subsection:
(A) Applicable provider.--The term ``applicable provider''
means the following:
(i) A critical access hospital (as defined in section
1861(mm)(1) of the Social Security Act (42 U.S.C.
1395xx(mm)(1))).
(ii) A hospital (as defined in section 1861(e) of such Act
(42 U.S.C. 1395x(e))).
(iii) A physician (as defined in section 1861(r) of such
Act (42 U.S.C. 1395x(r))).
(iv) Any other provider the Secretary determines should
receive the information described in subsection (a).
(B) Performance improvement.--The term ``performance
improvement'' means improvements in quality, reducing per
capita costs, and other criteria the Secretary determines
appropriate.
SEC. 610. EXTENSION OF FUNDING OUTREACH AND ASSISTANCE FOR
LOW-INCOME PROGRAMS.
(a) Additional Funding for State Health Insurance
Programs.--Subsection (a)(1)(B) of section 119 of the
Medicare Improvements for Patients and Providers Act of 2008
(42 U.S.C. 1395b-3 note), as amended by section 3306 of the
Patient Protection and Affordable Care Act Public Law 111-
148), is amended--
(1) in clause (i), by striking ``and'' at the end;
(2) in clause (ii), by striking the period at the end and
inserting ``; and''; and
(3) by inserting after clause (ii) the following new
clause:
``(iii) for fiscal year 2013, of $7,500,000.''.
(b) Additional Funding for Area Agencies on Aging.--
Subsection (b)(1)(B) of such section 119, as so amended, is
amended--
(1) in clause (i), by striking ``and'' at the end;
(2) in clause (ii), by striking the period at the end and
inserting ``; and''; and
(3) by inserting after clause (ii) the following new
clause:
``(iii) for fiscal year 2013, of $7,500,000.''.
(c) Additional Funding for Aging and Disability Resource
Centers.--Subsection (c)(1)(B) of such section 119, as so
amended, is amended--
(1) in clause (i), by striking ``and'' at the end;
(2) in clause (ii), by striking the period at the end and
inserting ``; and''; and
(3) by inserting after clause (ii) the following new
clause:
``(iii) for fiscal year 2013, of $5,000,000.''.
(d) Additional Funding for Contract With the National
Center for Benefits and Outreach Enrollment.--Subsection
(d)(2) of such section 119, as so amended, is amended--
(1) in clause (i), by striking ``and'' at the end;
(2) in clause (ii), by striking the period at the end and
inserting ``; and''; and
(3) by inserting after clause (ii) the following new
clause:
``(iii) for fiscal year 2013, of $5,000,000.''.
Subtitle B--Other Health Extensions
SEC. 621. EXTENSION OF THE QUALIFYING INDIVIDUAL (QI)
PROGRAM.
(a) Extension.--Section 1902(a)(10)(E)(iv) of the Social
Security Act (42 U.S.C. 1396a(a)(10)(E)(iv)) is amended by
striking ``2012'' and inserting ``2013''.
(b) Extending Total Amount Available for Allocation.--
Section 1933(g) of such Act (42 U.S.C. 1396u-3(g)) is
amended--
(1) in paragraph (2)--
(A) in subparagraph (Q), by striking ``and'' after the
semicolon;
(B) in subparagraph (R), by striking the period at the end
and inserting a semicolon; and
(C) by adding at the end the following new subparagraphs:
``(S) for the period that begins on January 1, 2013, and
ends on September 30, 2013, the total allocation amount is
$485,000,000; and
``(T) for the period that begins on October 1, 2013, and
ends on December 31, 2013, the total allocation amount is
$300,000,000.''; and
(2) in paragraph (3), in the matter preceding subparagraph
(A), by striking ``or (R)'' and inserting ``(R), or (T)''.
SEC. 622. EXTENSION OF TRANSITIONAL MEDICAL ASSISTANCE (TMA).
Sections 1902(e)(1)(B) and 1925(f) of the Social Security
Act (42 U.S.C. 1396a(e)(1)(B), 1396r-6(f)) are each amended
by striking ``2012'' and inserting ``2013''.
SEC. 623. EXTENSION OF MEDICAID AND CHIP EXPRESS LANE OPTION.
Section 1902(e)(13)(I) of the Social Security Act (42
U.S.C. 1396a(e)(13)(I)) is amended by striking ``2013'' and
inserting ``2014''.
SEC. 624. EXTENSION OF FAMILY-TO-FAMILY HEALTH INFORMATION
CENTERS.
Section 501(c)(1)(A)(iii) of the Social Security Act (42
U.S.C. 701(c)(1)(A)(iii)) is amended by striking ``2012'' and
inserting ``2013''.
[[Page H7547]]
SEC. 625. EXTENSION OF SPECIAL DIABETES PROGRAM FOR TYPE I
DIABETES AND FOR INDIANS.
(a) Special Diabetes Programs for Type I Diabetes.--Section
330B(b)(2)(C) of the Public Health Service Act (42 U.S.C.
254c-2(b)(2)(C)) is amended by striking ``2013'' and
inserting ``2014''.
(b) Special Diabetes Programs for Indians.--Section
330C(c)(2)(C) of the Public Health Service Act (42 U.S.C.
254c-3(c)(2)(C)) is amended by striking ``2013'' and
inserting ``2014''.
Subtitle C--Other Health Provisions
SEC. 631. IPPS DOCUMENTATION AND CODING ADJUSTMENT FOR
IMPLEMENTATION OF MS-DRGS.
(a) Rule of Construction and Clarification.--
(1) Rule of construction.--Nothing in the amendments made
by subsection (b) shall be construed as changing the existing
authority under section 1886(d) of the Social Security Act
(42 U.S.C. 1395ww(d)) to make prospective documentation and
coding adjustments to the standardized amounts under such
section 1886(d) to correct for changes in the coding or
classification of discharges that do not reflect real changes
in case mix.
(2) Clarification.--Effective on the date of the enactment
of this section, except as provided in section 7(b)(1)(B)(ii)
of the TMA, Abstinence Education, and QI Programs Extension
Act of 2007, as added by subsection (b)(2)(A)(ii)(IV) of this
section, the Secretary of Health and Human Services shall not
have authority to fully recoup past overpayments related to
documentation and coding changes from fiscal years 2008 and
2009.
(b) Adjustment.--Section 7 of the TMA, Abstinence
Education, and QI Programs Extension Act of 2007 (Public Law
110-90; 121 Stat. 986) is amended--
(1) in the heading, by striking ``LIMITATION'' and all that
follows through ``ADJUSTMENT'' and inserting ``DOCUMENTATION
AND CODING ADJUSTMENTS''; and
(2) in subsection (b)--
(A) in paragraph (1)--
(i) in the matter before subparagraph (A)--
(I) by striking ``or 2009'' and inserting ``, 2009, or
2010''; and
(II) by inserting ``or otherwise applied for such year''
after ``applied under subsection (a)''; and
(ii) in subparagraph (B)--
(I) by inserting ``(i)'' after ``(B)'';
(II) by striking ``or decrease'';
(III) by striking the period at the end and inserting ``;
and''; and
(IV) by adding at the end the following:
``(ii) make an additional adjustment to the standardized
amounts under such section 1886(d) based upon the Secretary's
estimates for discharges occurring only during fiscal years
2014, 2015, 2016, and 2017 to fully offset $11,000,000,000
(which represents the amount of the increase in aggregate
payments from fiscal years 2008 through 2013 for which an
adjustment was not previously applied).''; and
(B) in paragraph (3)--
(i) in subparagraph (A), by inserting before the semicolon
the following: ``or affecting the Secretary's authority under
such paragraph to apply a prospective adjustment to offset
aggregate additional payments related to documentation and
coding improvements made with respect to discharges during
fiscal year 2010''; and
(ii) in subparagraph (B), by striking ``and 2012'' and
inserting ``2012, 2014, 2015, 2016, and 2017''.
SEC. 632. REVISIONS TO THE MEDICARE ESRD BUNDLED PAYMENT
SYSTEM TO REFLECT FINDINGS IN THE GAO REPORT.
(a) Adjustment to ESRD Bundled Payment Rate To Account for
Changes in the Utilization of Certain Drugs and
Biologicals.--Section 1881(b)(14) of the Social Security Act
(42 U.S.C. 1395rr(b)(14)) is amended by adding at the end the
following new subparagraph:
``(I) For services furnished on or after January 1, 2014,
the Secretary shall, by comparing per patient utilization
data from 2007 with such data from 2012, make reductions to
the single payment that would otherwise apply under this
paragraph for renal dialysis services to reflect the
Secretary's estimate of the change in the utilization of
drugs and biologicals described in clauses (ii), (iii), and
(iv) of subparagraph (B) (other than oral-only ESRD-related
drugs, as such term is used in the final rule promulgated by
the Secretary in the Federal Register on August 12, 2010 (75
Fed. Reg. 49030)). In making reductions under the preceding
sentence, the Secretary shall take into account the most
recently available data on average sales prices and changes
in prices for drugs and biological reflected in the ESRD
market basket percentage increase factor under subparagraph
(F).''.
(b) Two-year Delay of Implementation of Oral-Only ESRD-
Related Drugs in the ESRD Prospective Payment System;
Monitoring.--
(1) Delay.--The Secretary of Health and Human Services may
not implement the policy under section 413.174(f)(6) of title
42, Code of Federal Regulations (relating to oral-only ESRD-
related drugs in the ESRD prospective payment system), prior
to January 1, 2016.
(2) Monitoring.--With respect to the implementation of
oral-only ESRD-related drugs in the ESRD prospective payment
system under subsection (b)(14) of section 1881 of the Social
Security Act (42 U.S.C. 1395rr(b)(14)), the Secretary of
Health and Human Services shall monitor the bone and mineral
metabolism of individuals with end stage renal disease.
(c) Analysis of Case Mix Payment Adjustments.--By not later
than January 1, 2016, the Secretary of Health and Human
Services shall--
(1) conduct an analysis of the case mix payment adjustments
being used under section 1881(b)(14)(D)(i) of the Social
Security Act (42 U.S.C. 1395rr(b)(14)(D)(i)); and
(2) make appropriate revisions to such case mix payment
adjustments.
(d) Updated GAO Report.--Not later than December 31, 2015,
the Comptroller General of the United States shall submit to
Congress a report that updates the report submitted to
Congress under section 10336 of the Patient Protection and
Affordable Care Act (Public Law 111-148; 124 Stat. 974). The
updated report shall include an analysis of how the Secretary
of Health and Human Services has addressed points raised in
the report submitted under such section 10336 with respect to
the Secretary's preparations to implement payment for oral-
only ESRD-related drugs in the bundled prospective payment
system under section 1881(b)(14) of the Social Security Act
(42 U.S.C. 1395rr(b)(14)).
SEC. 633. TREATMENT OF MULTIPLE SERVICE PAYMENT POLICIES FOR
THERAPY SERVICES.
(a) Services Furnished by Physicians and Certain Other
Providers.--Section 1848(b)(7) of the Social Security Act (42
U.S.C. 1395w-4(b)(7)) is amended--
(1) by striking ``2011,'' and inserting ``2011, and before
April 1, 2013,''; and
(2) by adding at the end the following new sentence: ``In
the case of such services furnished on or after April 1,
2013, and for which payment is made under such fee schedules,
instead of the 25 percent multiple procedure payment
reduction specified in such final rule, the reduction
percentage shall be 50 percent.''.
(b) Services Furnished by Other Providers.--Section 1834(k)
of the Social Security Act (42 U.S.C. 1395m(k)) is amended by
adding at the end the following new paragraph:
``(7) Adjustment in discount for certain multiple therapy
services.--In the case of therapy services furnished on or
after April 1, 2013, and for which payment is made under this
subsection pursuant to the applicable fee schedule amount (as
defined in paragraph (3)), instead of the 25 percent multiple
procedure payment reduction specified in the final rule
published by the Secretary in the Federal Register on
November 29, 2010, the reduction percentage shall be 50
percent.''.
SEC. 634. PAYMENT FOR CERTAIN RADIOLOGY SERVICES FURNISHED
UNDER THE MEDICARE HOSPITAL OUTPATIENT
DEPARTMENT PROSPECTIVE PAYMENT SYSTEM.
Section 1833(t)(16) of the Social Security Act (42 U.S.C.
1395l(t)(16)) is amended by adding at the end the following
new subparagraph:
``(D) Special payment rule.--
``(i) In general.--In the case of covered OPD services
furnished on or after April 1, 2013, in a hospital described
in clause (ii), if--
``(I) the payment rate that would otherwise apply under
this subsection for stereotactic radiosurgery, complete
course of treatment of cranial lesion(s) consisting of 1
session that is multi-source Cobalt 60 based (identified as
of January 1, 2013, by HCPCS code 77371 (and any succeeding
code) and reimbursed as of such date under APC 0127 (and any
succeeding classification group)); exceeds
``(II) the payment rate that would otherwise apply under
this subsection for linear accelerator based stereotactic
radiosurgery, complete course of therapy in one session
(identified as of January 1, 2013, by HCPCS code G0173 (and
any succeeding code) and reimbursed as of such date under APC
0067 (and any succeeding classification group)),
the payment rate for the service described in subclause (I)
shall be reduced to an amount equal to the payment rate for
the service described in subclause (II).
``(ii) Hospital described.--A hospital described in this
clause is a hospital that is not--
``(I) located in a rural area (as defined in section
1886(d)(2)(D));
``(II) classified as a rural referral center under section
1886(d)(5)(C); or
``(III) a sole community hospital (as defined in section
1886(d)(5)(D)(iii)).
``(iii) Not budget neutral.--In making any budget
neutrality adjustments under this subsection for 2013 (with
respect to covered OPD services furnished on or after April
1, 2013, and before January 1, 2014) or a subsequent year,
the Secretary shall not take into account the reduced
expenditures that result from the application of this
subparagraph.''.
SEC. 635. ADJUSTMENT OF EQUIPMENT UTILIZATION RATE FOR
ADVANCED IMAGING SERVICES.
Section 1848 of the Social Security Act (42 U.S.C. 1395w-4)
is amended--
(1) in subsection (b)(4)(C)--
(A) by striking ``and subsequent years'' and inserting ``,
2012, and 2013''; and
(B) by adding at the end the following new sentence: ``With
respect to fee schedules established for 2014 and subsequent
years, in such methodology, the Secretary shall use a 90
percent utilization rate.''; and
(2) in subsection (c)(2)(B)(v)(III), by striking ``change
in the utilization rate applicable to 2011, as described in''
and inserting ``changes in the utilization rate applicable to
2011 and 2014, as described in the first and second sentence,
respectively, of''.
SEC. 636. MEDICARE PAYMENT OF COMPETITIVE PRICES FOR DIABETIC
SUPPLIES AND ELIMINATION OF OVERPAYMENT FOR
DIABETIC SUPPLIES.
(a) Application of Competitive Bidding Prices for Diabetic
Supplies.--Section 1834(a)(1) of the Social Security Act (42
U.S.C. 1395m(a)(1)) is amended--
(1) in subparagraph (F), in the matter preceding clause
(i), by striking ``subparagraph (G)'' and inserting
``subparagraphs (G) and (H)''; and
(2) by adding at the end the following new subparagraph:
[[Page H7548]]
``(H) Diabetic supplies.--
``(i) In general.--On or after the date described in clause
(ii), the payment amount under this part for diabetic
supplies, including testing strips, that are non-mail order
items (as defined by the Secretary) shall be equal to the
single payment amounts established under the national mail
order competition for diabetic supplies under section 1847.
``(ii) Date described.--The date described in this clause
is the date of the implementation of the single payment
amounts under the national mail order competition for
diabetic supplies under section 1847.''.
(b) Overpayment Elimination for Diabetic Supplies.--Section
1834(a) of the Social Security Act (42 U.S.C. 1395m(a)) is
amended by adding at the end the following new paragraph:
``(22) Special payment rule for diabetic supplies.--
Notwithstanding the preceding provisions of this subsection,
for purposes of determining the payment amount under this
subsection for diabetic supplies furnished on or after the
first day of the calendar quarter during 2013 that is at
least 30 days after the date of the enactment of this
paragraph and before the date described in paragraph
(1)(H)(ii), the Secretary shall recalculate and apply the
covered item update under paragraph (14) as if subparagraph
(J)(i) of such paragraph was amended by striking `but only if
furnished through mail order'.''.
SEC. 637. MEDICARE PAYMENT ADJUSTMENT FOR NON-EMERGENCY
AMBULANCE TRANSPORTS FOR ESRD BENEFICIARIES.
Section 1834(l) of the Social Security Act (42 U.S.C.
1395m(l)) is amended by adding at the end the following new
paragraph:
``(15) Payment adjustment for non-emergency ambulance
transports for esrd beneficiaries.--The fee schedule amount
otherwise applicable under the preceding provisions of this
subsection shall be reduced by 10 percent for ambulance
services furnished on or after October 1, 2013, consisting of
non-emergency basic life support services involving transport
of an individual with end-stage renal disease for renal
dialysis services (as described in section 1881(b)(14)(B))
furnished other than on an emergency basis by a provider of
services or a renal dialysis facility.''.
SEC. 638. REMOVING OBSTACLES TO COLLECTION OF OVERPAYMENTS.
(a) In General.--The last sentence of subsections (b) and
(c) of section 1870 of the Social Security Act (42 U.S.C.
1395gg) are each amended--
(1) by striking ``third year'' and inserting ``fifth
year''; and
(2) by striking ``three-year'' and inserting ``five-year''.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect on the date of the enactment of this Act.
SEC. 639. MEDICARE ADVANTAGE CODING INTENSITY ADJUSTMENT.
Section 1853(a)(1)(C)(ii)(III) of the Social Security Act
(42 U.S.C. 1395w-23(a)(1)(C)(ii)(III)) is amended--
(1) by striking ``1.3 percentage points'' and inserting
``1.5 percentage points''; and
(2) by striking ``5.7 percent'' and inserting ``5.9
percent''.
SEC. 640. ELIMINATION OF ALL FUNDING FOR THE MEDICARE
IMPROVEMENT FUND.
Section 1898(b)(1) of the Social Security Act (42 U.S.C.
1395iii(b)(1)) is amended by striking subparagraphs (A), (B),
and (C) and inserting the following new subparagraphs:
``(A) fiscal year 2014, $0; and
``(B) fiscal year 2015, $0.''.
SEC. 641. REBASING OF STATE DSH ALLOTMENTS.
Section 1923(f)(8) of the Social Security Act (42 U.S.C.
1396r-4(f)(8)) is amended to read as follows:
``(8) Special rules for calculating dsh allotments for
certain fiscal years.--
``(A) Fiscal year 2021.--Only with respect to fiscal year
2021, the DSH allotment for a State, in lieu of the amount
determined under paragraph (3) for the State for that year,
shall be equal to the DSH allotment for the State as reduced
under paragraph (7) for fiscal year 2020, increased, subject
to subparagraphs (B) and (C) of paragraph (3), and paragraph
(5), by the percentage change in the consumer price index for
all urban consumers (all items; U.S. city average), for
fiscal year 2020.
``(B) Fiscal year 2022.--Only with respect to fiscal year
2022, the DSH allotment for a State, in lieu of the amount
determined under paragraph (3) for the State for that year,
shall be equal to the DSH allotment for the State for fiscal
year 2021, as determined under subparagraph (A), increased,
subject to subparagraphs (B) and (C) of paragraph (3), and
paragraph (5), by the percentage change in the consumer price
index for all urban consumers (all items; U.S. city average),
for fiscal year 2021.
``(C) Subsequent fiscal years.--The DSH allotment for a
State for fiscal years after fiscal year 2022 shall be
calculated under paragraph (3) without regard to this
paragraph and paragraph (7).''.
SEC. 642. REPEAL OF CLASS PROGRAM.
(a) Repeal.--Title XXXII of the Public Health Service Act
(42 U.S.C. 300ll et seq.; relating to the CLASS program) is
repealed.
(b) Conforming Changes.--
(1) Title VIII of the Patient Protection and Affordable
Care Act (Public Law 111-148; 124 Stat. 119, 846-847) is
repealed.
(2) Section 1902(a) of the Social Security Act (42 U.S.C.
1396a(a)) is amended--
(A) by striking paragraphs (81) and (82);
(B) in paragraph (80), by inserting ``and'' at the end; and
(C) by redesignating paragraph (83) as paragraph (81).
(3) Paragraphs (2) and (3) of section 6021(d) of the
Deficit Reduction Act of 2005 (42 U.S.C. 1396p note) are
amended to read as such paragraphs were in effect on the day
before the date of the enactment of section 8002(d) of the
Patient Protection and Affordable Care Act (Public Law 111-
148). Of the funds appropriated by paragraph (3) of such
section 6021(d), as amended by the Patient Protection and
Affordable Care Act, the unobligated balance is rescinded.
SEC. 643. COMMISSION ON LONG-TERM CARE.
(a) Establishment.--There is established a commission to be
known as the Commission on Long-Term Care (referred to in
this section as the ``Commission'').
(b) Duties.--
(1) In general.--The Commission shall develop a plan for
the establishment, implementation, and financing of a
comprehensive, coordinated, and high-quality system that
ensures the availability of long-term services and supports
for individuals in need of such services and supports,
including elderly individuals, individuals with substantial
cognitive or functional limitations, other individuals who
require assistance to perform activities of daily living, and
individuals desiring to plan for future long-term care needs.
(2) Existing health care programs.--For purposes of
developing the plan described in paragraph (1), the
Commission shall provide recommendations for--
(A) addressing the interaction of a long-term services and
support system with existing programs for long-term services
and supports, including the Medicare program under title
XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) and
the Medicaid program under title XIX of the Social Security
Act (42 U.S.C. 1396 et seq.), and private long-term care
insurance;
(B) improvements to such health care programs that are
necessary for ensuring the availability of long-term services
and supports; and
(C) issues related to workers who provide long-term
services and supports, including--
(i) whether the number of such workers is adequate to
provide long-term services and supports to individuals with
long-term care needs;
(ii) workforce development necessary to deliver high-
quality services to such individuals;
(iii) development of entities that have the capacity to
serve as employers and fiscal agents for workers who provide
long-term services and supports in the homes of such
individuals; and
(iv) addressing gaps in Federal and State infrastructure
that prevent delivery of high-quality long term services and
supports to such individuals.
(3) Additional considerations.--For purposes of developing
the plan described in paragraph (1), the Commission shall
take into account projected demographic changes and trends in
the population of the United States, as well as the potential
for development of new technologies, delivery systems, or
other mechanisms to improve the availability and quality of
long-term services and supports.
(4) Consultation.--For purposes of developing the plan
described in paragraph (1), the Commission shall consult with
the Medicare Payment Advisory Commission, the Medicaid and
CHIP Payment and Access Commission, the National Council on
Disability, and relevant consumer groups.
(c) Membership.--
(1) In general.--The Commission shall be composed of 15
members, to be appointed not later than 30 days after the
date of enactment of this Act, as follows:
(A) The President of the United States shall appoint 3
members.
(B) The majority leader of the Senate shall appoint 3
members.
(C) The minority leader of the Senate shall appoint 3
members.
(D) The Speaker of the House of Representatives shall
appoint 3 members.
(E) The minority leader of the House of Representatives
shall appoint 3 members.
(2) Representation.--The membership of the Commission shall
include individuals who--
(A) represent the interests of--
(i) consumers of long-term services and supports and
related insurance products, as well as their representatives;
(ii) older adults;
(iii) individuals with cognitive or functional limitations;
(iv) family caregivers for individuals described in clause
(i), (ii), or (iii);
(v) the health care workforce who directly provide long-
term services and supports;
(vi) private long-term care insurance providers;
(vii) employers;
(viii) State insurance departments; and
(ix) State Medicaid agencies;
(B) have demonstrated experience in dealing with issues
related to long-term services and supports, health care
policy, and public and private insurance; and
(C) represent the health care interests and needs of a
variety of geographic areas and demographic groups.
(3) Chairman and vice-chairman.--The Commission shall elect
a chairman and vice chairman from among its members.
(4) Vacancies.--Any vacancy in the membership of the
Commission shall be filled in the manner in which the
original appointment was made and shall not affect the power
of the remaining members to execute the duties of the
Commission.
(5) Quorum.--A quorum shall consist of 8 members of the
Commission, except that 4 members may conduct a hearing under
subsection (e)(1).
(6) Meetings.--The Commission shall meet at the call of its
chairman or a majority of its members.
(7) Compensation and reimbursement of expenses.--
[[Page H7549]]
(A) In general.--To enable the Commission to exercise its
powers, functions, and duties, there are authorized to be
disbursed by the Senate the actual and necessary expenses of
the Commission approved by the chairman and vice chairman,
subject to subparagraph (B) and the rules and regulations of
the Senate.
(B) Members.--Members of the Commission are not entitled to
receive compensation for service on the Commission. Members
may be reimbursed for travel, subsistence, and other
necessary expenses incurred in carrying out the duties of the
Commission.
(d) Staff and Ethical Standards.--
(1) Staff.--The chairman and vice chairman of the
Commission may jointly appoint and fix the compensation of
staff as they deem necessary, within the guidelines for
employees of the Senate and following all applicable rules
and employment requirements of the Senate.
(2) Ethical standards.--Members of the Commission who serve
in the House of Representatives shall be governed by the
ethics rules and requirements of the House. Members of the
Senate who serve on the Commission and staff of the
Commission shall comply with the ethics rules of the Senate.
(e) Powers.--
(1) Hearings and other activities.--For the purpose of
carrying out its duties, the Commission may hold such
hearings and undertake such other activities as the
Commission determines to be necessary to carry out its
duties.
(2) Studies by general accounting office.--Upon the request
of the Commission, the Comptroller General of the United
States shall conduct such studies or investigations as the
Commission determines to be necessary to carry out its
duties.
(3) Cost estimates by congressional budget office.--Upon
the request of the Commission, the Director of the
Congressional Budget Office shall provide to the Commission
such cost estimates as the Commission determines to be
necessary to carry out its duties.
(4) Detail of federal employees.--Upon the request of the
Commission, the head of any Federal agency is authorized to
detail, without reimbursement, any of the personnel of such
agency to the Commission to assist the Commission in carrying
out its duties. Any such detail shall not interrupt or
otherwise affect the civil service status or privileges of
the Federal employee.
(5) Technical assistance.--Upon the request of the
Commission, the head of a Federal agency shall provide such
technical assistance to the Commission as the Commission
determines to be necessary to carry out its duties.
(6) Use of mails.--The Commission may use the United States
mails in the same manner and under the same conditions as
Federal agencies.
(7) Obtaining information.--The Commission may secure
directly from any Federal agency information necessary to
enable it to carry out its duties, if the information may be
disclosed under section 552 of title 5, United States Code.
Upon request of the Chairman of the Commission, the head of
such agency shall furnish such information to the Commission.
(8) Administrative support services.--Upon the request of
the Commission, the Administrator of General Services shall
provide to the Commission on a reimbursable basis such
administrative support services as the Commission may
request.
(f) Commission Consideration.--
(1) Approval of report and legislative language.--
(A) In general.--Not later than 6 months after appointment
of the members of the Commission (as described in subsection
(c)(1)), the Commission shall vote on a comprehensive and
detailed report based on the long-term care plan described in
subsection (b)(1) that contains any recommendations or
proposals for legislative or administrative action as the
Commission deems appropriate, including proposed legislative
language to carry out the recommendations or proposals
(referred to in this section as the ``Commission bill'').
(B) Approval by majority of members.--The Commission bill
shall require the approval of a majority of the members of
the Commission.
(2) Transmission of commission bill.--
(A) In general.--If the Commission bill is approved by the
Commission pursuant to paragraph (1), then not later than 10
days after such approval, the Commission shall submit the
Commission bill to the President, the Vice President, the
Speaker of the House of Representatives, and the majority and
minority Leaders of each House on Congress.
(B) Commission bill to be made public.--Upon the approval
or disapproval of the Commission bill pursuant to paragraph
(1), the Commission shall promptly make such proposal, and a
record of the vote, available to the public.
(g) Termination.--The Commission shall terminate 30 days
after the vote described in subsection (f)(1).
(h) Consideration of Commission Recommendations.--If
approved by the majority required by subsection (f)(1), the
Commission bill that has been submitted pursuant to
subsection (f)(2)(A) shall be introduced in the Senate (by
request) on the next day on which the Senate is in session by
the majority leader of the Senate or by a Member of the
Senate designated by the majority leader of the Senate and
shall be introduced in the House of Representatives (by
request) on the next legislative day by the majority leader
of the House or by a member of the House designated by the
majority leader of the House.
SEC. 644. CONSUMER OPERATED AND ORIENTED PLAN PROGRAM
CONTINGENCY FUND.
(a) Establishment.--The Secretary of Health and Human
Services shall establish a fund to be used to provide
assistance and oversight to qualified nonprofit health
insurance issuers that have been awarded loans or grants
under section 1322 of the Patient Protection and Affordable
Care Act (42 U.S.C. 18042) prior to the date of enactment of
this Act.
(b) Transfer and Rescission.--
(1) Transfer.--From the unobligated balance of funds
appropriated under section 1322(g) of the Patient Protection
and Affordable Care Act (42 U.S.C. 18042(g)), 10 percent of
such sums are hereby transferred to the fund established
under subsection (a) to remain available until expended.
(2) Rescission.--Except as provided for in paragraph (1),
amounts appropriated under section 1322(g) of the Patient
Protection and Affordable Care Act (42 U.S.C. 18042(g)) that
are unobligated as of the date of enactment of this Act are
rescinded.
TITLE VII--EXTENSION OF AGRICULTURAL PROGRAMS
SEC. 701. 1-YEAR EXTENSION OF AGRICULTURAL PROGRAMS.
(a) Extension.--Except as otherwise provided in this
section and amendments made by this section and
notwithstanding any other provision of law, the authorities
provided by each provision of the Food, Conservation, and
Energy Act of 2008 (Public Law 110-246; 122 Stat. 1651) and
each amendment made by that Act (and for mandatory programs
at such funding levels), as in effect on September 30, 2012,
shall continue, and the Secretary of Agriculture shall carry
out the authorities, until the later of--
(1) September 30, 2013; or
(2) the date specified in the provision of that Act or
amendment made by that Act.
(b) Commodity Programs.--
(1) In general.--The terms and conditions applicable to a
covered commodity or loan commodity (as those terms are
defined in section 1001 of the Food, Conservation, and Energy
Act of 2008 (7 U.S.C. 8702)) or to peanuts, sugarcane, or
sugar beets for the 2012 crop year pursuant to title I of
that Act (7 U.S.C. 8702 et seq.) and each amendment made by
that title shall be applicable to the 2013 crop year for that
covered commodity, loan commodity, peanuts, sugarcane, or
sugar beets.
(2) Milk.--
(A) In general.--Notwithstanding subsection (a), the
Secretary of Agriculture shall carry out the dairy product
price support program under section 1501 of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C. 8771) through
December 31, 2013.
(B) Milk income loss contract program.--Section 1506 of the
Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773) is
amended by striking ``2012'' each place it appears in
subsections (c)(3), (d)(1), (d)(2), (e)(2)(A), (g), and
(h)(1) and inserting ``2013''.
(3) Suspension of permanent price support authorities.--The
provisions of law specified in subsections (a) through (c) of
section 1602 of the Food, Conservation, and Energy Act of
2008 (7 U.S.C. 8782) shall be suspended--
(A) for the 2013 crop or production year of a covered
commodity (as that term is defined in section 1001 of that
Act (7 U.S.C. 8702)), peanuts, sugarcane, and sugar, as
appropriate; and
(B) in the case of milk, through December 31, 2013.
(c) Conservation Programs.--
(1) Conservation reserve.--Section 1231(d) of the Food
Security Act of 1985 (16 U.S.C. 3831(d)) is amended in the
second sentence by striking ``and 2012'' and inserting
``2012, and 2013''.
(2) Voluntary public access.--Section 1240R of the Food
Security Act of 1985 (16 U.S.C. 3839bb-5) is amended by
striking subsection (f) and inserting the following:
``(f) Funding.--
``(1) Fiscal years 2009 through 2012.--Of the funds of the
Commodity Credit Corporation, the Secretary shall use to
carry out this section, to the maximum extent practicable,
$50,000,000 for the period of fiscal years 2009 through 2012.
``(2) Authorization of appropriations.--There is authorized
to be appropriated to carry out this section $10,000,000 for
fiscal year 2013.''.
(d) Supplemental Nutrition Assistance Program.--
(1) Employment and training program.--Section 16(h)(1)(A)
of the Food and Nutrition Act of 2008 (7 U.S.C.
2025(h)(1)(A)) is amended by inserting ``, except that for
fiscal year 2013, the amount shall be $79,000,000'' before
the period at the end.
(2) Nutrition education.--Section 28(d)(1) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2036a(d)(1)) is amended--
(A) in subparagraph (A), by striking ``and'' after the
semicolon at the end; and
(B) by striking subparagraph (B) and inserting the
following:
``(B) for fiscal year 2012, $388,000,000;
``(C) for fiscal year 2013, $285,000,000;
``(D) for fiscal year 2014, $401,000,000;
``(E) for fiscal year 2015, $407,000,000; and
``(F) for fiscal year 2016 and each subsequent fiscal year,
the applicable amount during the preceding fiscal year, as
adjusted to reflect any increases for the 12-month period
ending the preceding June 30 in the Consumer Price Index for
All Urban Consumers published by the Bureau of Labor
Statistics of the Department of Labor.''.
(e) Research Programs.--
(1) Organic agriculture research and extension
initiative.--Section 1672B(f) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5925b(f)) is
amended--
(A) in the heading of paragraph (1), by striking ``In
general'' and inserting ``Mandatory funding for fiscal years
2009 through 2012'';
(B) in the heading of paragraph (2), by striking
``Additional funding'' and inserting ``Discretionary funding
for fiscal years 2009 through 2012''; and
(C) by adding at the end the following:
[[Page H7550]]
``(3) Fiscal year 2013.--There is authorized to be
appropriated to carry out this section $25,000,000 for fiscal
year 2013.''.
(2) Specialty crop research initiative.--Section 412(h) of
the Agricultural Research, Extension, and Education Reform
Act of 1998 (7 U.S.C. 7632(h)) is amended--
(A) in the heading of paragraph (1), by striking ``In
general'' and inserting ``Mandatory funding for fiscal years
2008 through 2012'';
(B) in the heading of paragraph (2), by inserting ``for
fiscal years 2008 through 2012'' after ``Appropriations'';
(C) by redesignating paragraphs (3) and (4) as paragraphs
(4) and (5), respectively; and
(D) by inserting after paragraph (2) the following:
``(3) Fiscal year 2013.--There is authorized to be
appropriated to carry out this section $100,000,000 for
fiscal year 2013.''.
(3) Beginning farmer and rancher development program.--
Section 7405(h) of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 3319f(h)) is amended--
(A) in the heading of paragraph (1), by striking ``In
general'' and inserting ``Mandatory funding for fiscal years
2009 through 2012'';
(B) in the heading of paragraph (2), by inserting ``for
fiscal years 2008 through 2012'' after ``Appropriations'';
and
(C) by adding at the end the following:
``(3) Fiscal year 2013.--There is authorized to be
appropriated to carry out this section $30,000,000 for fiscal
year 2013.''.
(f) Energy Programs.--
(1) Biobased markets program.--Section 9002(h) of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 8102(h))
is amended in paragraph (2) by striking ``2012'' and
inserting ``2013''.
(2) Biorefinery assistance.--Section 9003(h)(2) of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C.
8103(h)(2)) is amended by striking ``2012'' and inserting
``2013''.
(3) Repowering assistance.--Section 9004(d)(2) of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C.
8104(d)(2)) is amended by striking ``2012'' and inserting
``2013''.
(4) Bioenergy program for advanced biofuels.--Section
9005(g)(2) of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 8105(g)(2)) is amended by striking ``2012''
and inserting ``2013''.
(5) Biodiesel fuel education program.--Section 9006 of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C.
8106) is amended by striking subsection (d) and inserting the
following:
``(d) Funding.--
``(1) Fiscal years 2009 through 2012.--Of the funds of the
Commodity Credit Corporation, the Secretary shall use to
carry out this section $1,000,000 for each of fiscal years
2008 through 2012.
``(2) Authorization of appropriations.--There is authorized
to be appropriated to carry out this section $1,000,000 for
fiscal year 2013.''.
(6) Rural energy for america program.--Section 9007(g)(3)
of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 8107(g)(3)) is amended by striking ``2012'' and
inserting ``2013''.
(7) Biomass research and development.--Section 9008(h)(2)
of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 8108(h)(2)) is amended by striking ``2012'' and
inserting ``2013''.
(8) Rural energy self-sufficiency initiative.--Section
9009(d) of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 8109(d)) is amended by striking ``2012'' and
inserting ``2013''.
(9) Feedstock flexibility program for bioenergy
producers.--Section 9010(b) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 8110(b)) is amended in
paragraphs (1)(A) and (2)(A) by striking ``2012'' each place
it appears and inserting ``2013''.
(10) Biomass crop assistance program.--Section 9011(f) of
the Farm Security and Rural Investment Act of 2002 (7 U.S.C.
8111(f)) is amended--
(A) by striking ``(f) Funding.--Of the funds'' and
inserting ``(f) Funding.--
``(1) Fiscal years 2008 through 2012.--Of the funds''; and
(B) adding at the end the following:
``(2) Fiscal year 2013.--
``(A) In general.--There is authorized to be appropriated
to carry out this section $20,000,000 for fiscal year 2013.
``(B) Multiyear contracts.--For each multiyear contract
entered into by the Secretary during a fiscal year under this
paragraph, the Secretary shall ensure that sufficient funds
are obligated from the amounts appropriated for that fiscal
year to fully cover all payments required by the contract for
all years of the contract.''.
(11) Forest biomass for energy.--Section 9012(d) of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C.
8112(d)) is amended by striking ``2012'' and inserting
``2013''.
(12) Community wood energy program.--Section 9013(e) of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C.
8113(e)) is amended by striking ``2012'' and inserting
``2013''.
(g) Horticulture and Organic Agriculture Programs.--
(1) Farmers market promotion program.--Section 6(e) of the
Farmer-to-Consumer Direct Marketing Act of 1976 (7 U.S.C.
3005(e)) is amended--
(A) in the heading of paragraph (1), by striking ``In
general'' and inserting ``Fiscal years 2008 through 2012'';
(B) by redesignating paragraphs (2), (3), and (4) as
paragraphs (3), (4), and (5), respectively;
(C) by inserting after paragraph (1) the following:
``(2) Fiscal year 2013.--There is authorized to be
appropriated to carry out this section $10,000,000 for fiscal
year 2013.'';
(D) in paragraph (3) (as so redesignated), by striking
``paragraph (1)'' and inserting ``paragraph (1) or (2)''; and
(E) in paragraph (5) (as so redesignated), by striking
``paragraph (2)'' and inserting ``paragraph (3)''.
(2) National clean plant network.--Section 10202(e) of the
Food, Conservation, and Energy Act of 2008 (7 U.S.C. 7761(e))
is amended--
(A) by striking ``Of the funds'' and inserting the
following:
``(1) Fiscal years 2009 through 2012.--Of the funds''; and
(B) by adding at the end the following:
``(2) Fiscal year 2013.--There is authorized to be
appropriated to carry out the Program $5,000,000 for fiscal
year 2013.''.
(3) National organic certification cost-share program.--
Section 10606 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 6523) is amended--
(A) in subsection (a), by striking ``Of funds of the
Commodity Credit Corporation, the Secretary of Agriculture
(acting through the Agricultural Marketing Service) shall use
$22,000,000 for fiscal year 2008, to remain available until
expended, to'' and inserting ``The Secretary of Agriculture
(acting through the Agricultural Marketing Service) shall'';
and
(B) by adding at the end the following:
``(d) Funding.--
``(1) Mandatory funding for fiscal years 2008 through
2012.--Of the funds of the Commodity Credit Corporation, the
Secretary shall make available to carry out this section
$22,000,000 for the period of fiscal years 2008 through 2012.
``(2) Fiscal year 2013.--There is authorized to be
appropriated to carry out this section $22,000,000 for fiscal
year 2013, to remain available until expended.''.
(4) Organic production and market data initiatives.--
Section 7407(d) of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 5925c(d)) is amended--
(A) in the heading of paragraph (1), by striking ``In
general'' and inserting ``Mandatory funding through fiscal
year 2012'';
(B) in the heading of paragraph (2), by striking
``Additional funding'' and inserting ``Discretionary funding
for fiscal years 2008 through 2012''; and
(C) by adding at the end the following:
``(3) Fiscal year 2013.--There is authorized to be
appropriated to carry out this section $5,000,000, to remain
available until expended.''.
(h) Outreach and Technical Assistance for Socially
Disadvantaged Farmers or Ranchers.--Section 2501(a)(4) of the
Food, Agriculture, Conservation, and Trade Act of 1990 (7
U.S.C. 2279(a)(4)) is amended--
(1) in the heading of subparagraph (A), by striking ``In
general'' and inserting ``Fiscal years 2009 through 2012'';
(2) by redesignating subparagraphs (B) and (C) as
subparagraphs (C) and (D), respectively;
(3) by inserting after subparagraph (A) the following:
``(B) Fiscal year 2013.--There is authorized to be
appropriated to carry out this section $20,000,000 for fiscal
year 2013.'';
(4) in subparagraph (C) (as so redesignated), by striking
``subparagraph (A)'' and inserting ``subparagraph (A) or
(B)''; and
(5) in subparagraph (D) (as so redesignated), by striking
``subparagraph (A)'' and inserting ``subparagraph (A) or
(B)''.
(i) Exceptions.--
(1) In general.--Subsection (a) does not apply with respect
to mandatory funding provided by programs authorized by
provisions of law amended by subsections (d) through (h).
(2) Conservation.--Subsection (a) does not apply with
respect to the programs specified in paragraphs (3)(B), (4),
(6), and (7) of section 1241(a) of the Food Security Act of
1985 (16 U.S.C. 3841(a)), relating to the conservation
stewardship program, farmland protection program,
environmental quality incentives program, and wildlife
habitat incentives program, for which program authority was
extended through fiscal year 2014 by section 716 of Public
Law 112-55 (125 Stat. 582).
(3) Trade.--Subsection (a) does not apply with respect to
the following provisions of law:
(A) Section 3206 of the Food, Conservation, and Energy Act
of 2008 (7 U.S.C. 1726c) relating to the use of Commodity
Credit Corporation funds to support local and regional food
aid procurement projects.
(B) Section 3107(l)(1) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 1736o-1(l)(1)) relating to
the use of Commodity Credit Corporation funds to carry out
the McGovern-Dole International Food for Education and Child
Nutrition Program.
(4) Survey of foods purchased by school food authorities.--
Subsection (a) does not apply with respect to section 4307 of
the Food, Conservation, and Energy Act of 2008 (Public Law
110-246; 122 Stat. 1893) relating to the use of Commodity
Credit Corporation funds for a survey and report regarding
foods purchased by school food authorities.
(5) Rural development.--Subsection (a) does not apply with
respect to the following provisions of law:
(A) Section 379E(d)(1) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2008s(d)(1)), relating to funding
of the rural microentrepreneur assistance program.
(B) Section 6029 of the Food, Conservation, and Energy Act
of 2008 (Public Law 110-246; 122 Stat. 1955) relating to
funding of pending rural development loan and grant
applications.
(C) Section 231(b)(7)(A) of the Agricultural Risk
Protection Act of 2000 (7 U.S.C. 1632a(b)(7)(A)), relating to
funding of value-added agricultural market development
program grants.
[[Page H7551]]
(D) Section 375(e)(6)(B) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2008j(e)(6)(B)) relating to the use
of Commodity Credit Corporation funds for the National Sheep
Industry Improvement Center.
(6) Market loss assistance for asparagus producers.--
Subsection (a) does not apply with respect to section
10404(d) of the Food, Conservation, and Energy Act of 2008
(Public Law 110-246; 122 Stat. 2112).
(7) Supplemental agricultural disaster assistance.--
Subsection (a) does not apply with respect to section 531 of
the Federal Crop Insurance Act (7 U.S.C. 1531) and title IX
of the Trade Act of 1974 (19 U.S.C. 2497 et seq.) relating to
the provision of supplemental agricultural disaster
assistance.
(8) Pigford claims.--Subsection (a) does not apply with
respect to section 14012 of the Food, Conservation, and
Energy Act of 2008 (Public Law 110-246; 122 Stat. 2209)
relating to determination on the merits of Pigford claims.
(9) Heartland, habitat, harvest, and horticulture act of
2008.--Subsection (a) does not apply with respect to title XV
of the Food, Conservation, and Energy Act of 2008 (Public Law
110-246; 122 Stat. 2246), and amendments made by that title,
relating to the provision of supplemental agricultural
disaster assistance under title IX of the Trade Act of 1974
(19 U.S.C. 2497 et seq.), certain revenue and tax provisions,
and certain trade benefits and other matters.
(j) Effective Date.--Except as otherwise provided in this
section, this section and the amendments made by this section
take effect on the earlier of--
(1) the date of the enactment of this Act; or
(2) September 30, 2012.
SEC. 702. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.
(a) In General.--Section 531 of the Federal Crop Insurance
Act (7 U.S.C. 1531) is amended--
(1) in subsection (a)(5)--
(A) in the matter preceding clause (i), by striking the
first ``under''; and
(B) by redesignating clauses (i) through (iii) as
subparagraphs (A), (B), and (C), respectively, and indenting
appropriately;
(2) in subsection (c)--
(A) in paragraph (1), by striking ``use such sums as are
necessary from the Trust Fund to''; and
(B) by adding at the end the following:
``(3) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $80,000,000
for each of fiscal years 2012 and 2013.'';
(3) in subsection (d)--
(A) in paragraph (2), by striking ``use such sums as are
necessary from the Trust Fund to''; and
(B) by adding at the end the following:
``(7) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $400,000,000
for each of fiscal years 2012 and 2013.'';
(4) in subsection (e)--
(A) in paragraph (1), by striking ``use up to $50,000,000
per year from the Trust Fund to''; and
(B) by adding at the end the following:
``(4) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $50,000,000
for each of fiscal years 2012 and 2013.'';
(5) in subsection (f)--
(A) in paragraph (2)(A), by striking ``use such sums as are
necessary from the Trust Fund to''; and
(B) by adding at the end the following:
``(5) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $20,000,000
for each of fiscal years 2012 and 2013.''; and
(6) in subsection (i), by inserting ``or, in the case of
subsections (c) through (f), September 30, 2013'' after
``2011,''.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect on October 1, 2012.
TITLE VIII--MISCELLANEOUS PROVISIONS
SEC. 801. STRATEGIC DELIVERY SYSTEMS.
(a) In General.--Paragraph 3 of section 495(c) of title 10,
United States Code,, as added by section 1035 of the National
Defense Authorization Act for Fiscal Year 2013, is amended--
(1) by striking ``that'' before ``the Russian Federation''
and inserting ``whether''; and
(2) by inserting ``strategic'' before ``arms control
obligations''.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect as if included in the enactment of the
National Defense Authorization Act for Fiscal Year 2013.
SEC. 802. NO COST OF LIVING ADJUSTMENT IN PAY OF MEMBERS OF
CONGRESS.
Notwithstanding any other provision of law, no adjustment
shall be made under section 601(a) of the Legislative
Reorganization Act of 1946 (2 U.S.C. 31) (relating to cost of
living adjustments for Members of Congress) during fiscal
year 2013.
TITLE IX--BUDGET PROVISIONS
Subtitle A--Modifications of Sequestration
SEC. 901. TREATMENT OF SEQUESTER.
(a) Adjustment.--Section 251A(3) of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended--
(1) in subparagraph (C), by striking ``and'' after the
semicolon;
(2) in subparagraph (D), by striking the period and
inserting`` ; and''; and
(3) by inserting at the end the following:
``(E) for fiscal year 2013, reducing the amount calculated
under subparagraphs (A) through (D) by $24,000,000,000.''.
(b) After Session Sequester.--Notwithstanding any other
provision of law, the fiscal year 2013 spending reductions
required by section 251(a)(1) of the Balanced Budget and
Emergency Deficit Control Act of 1985 shall be evaluated and
implemented on March 27, 2013.
(c) Postponement of Budget Control Act Sequester for Fiscal
Year 2013.--Section 251A of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended--
(1) in paragraph (4), by striking ``January 2, 2013'' and
inserting ``March 1, 2013''; and
(2) in paragraph (7)(A), by striking ``January 2, 2013''
and inserting ``March 1, 2013''.
(d) Additional Adjustments.--
(1) Section 251.--Paragraphs (2) and (3) of section 251(c)
of the Balanced Budget and Emergency Deficit Control Act of
1985 are amended to read as follows:
``(2) for fiscal year 2013--
``(A) for the security category, as defined in section
250(c)(4)(B), $684,000,000,000 in budget authority; and
``(B) for the nonsecurity category, as defined in section
250(c)(4)(A), $359,000,000,000 in budget authority;
``(3) for fiscal year 2014--
``(A) for the security category, $552,000,000,000 in budget
authority; and
``(B) for the nonsecurity category, $506,000,000,000 in
budget authority;''.
(e) 2013 Sequester.--On March 1, 2013, the President shall
order a sequestration for fiscal year 2013 pursuant to
section 251A of the Balanced Budget and Emergency Deficit
Control Act of 1985, as amended by this section, pursuant to
which, only for the purposes of the calculation in sections
251A(5)(A), 251A(6)(A), and 251A(7)(A), section 251(c)(2)
shall be applied as if it read as follows:
``(2) For fiscal year 2013--
``(A) for the security category, $544,000,000,000 in budget
authority; and
``(B) for the nonsecurity category, $499,000,000,000 in
budget authority;''.
SEC. 902. AMOUNTS IN APPLICABLE RETIREMENT PLANS MAY BE
TRANSFERRED TO DESIGNATED ROTH ACCOUNTS WITHOUT
DISTRIBUTION.
(a) In General.--Section 402A(c)(4) is amended by adding at
the end the following:
``(E) Special rule for certain transfers.--In the case of
an applicable retirement plan which includes a qualified Roth
contribution program--
``(i) the plan may allow an individual to elect to have the
plan transfer any amount not otherwise distributable under
the plan to a designated Roth account maintained for the
benefit of the individual,
``(ii) such transfer shall be treated as a distribution to
which this paragraph applies which was contributed in a
qualified rollover contribution (within the meaning of
section 408A(e)) to such account, and
``(iii) the plan shall not be treated as violating the
provisions of section 401(k)(2)(B)(i), 403(b)(7)(A)(i),
403(b)(11), or 457(d)(1)(A), or of section 8433 of title 5,
United States Code, solely by reason of such transfer.''.
(b) Effective Date.--The amendment made by this section
shall apply to transfers after December 31, 2012, in taxable
years ending after such date.
Subtitle B--Budgetary Effects
SEC. 911. 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).
Amend the title so as to read: ``An Act entitled the
`American Taxpayer Relief Act of 2012'.''.
Motion to Concur
The SPEAKER pro tempore. The Clerk will designate the motion.
The text of the motion is as follows:
0Mr. Camp moves that the House concur in the Senate
amendments to H.R. 8.
The SPEAKER pro tempore. Pursuant to House Resolution 844, the motion
shall be debatable for 1 hour, equally divided and controlled by the
chair and ranking minority member of the Committee on Ways and Means.
The gentleman from Michigan (Mr. Camp) and the gentleman from
Michigan (Mr. Levin) each will control 30 minutes.
The Chair recognizes the gentleman from Michigan (Mr. Camp).
General Leave
Mr. CAMP. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days in which to revise and extend their remarks and
to include extraneous material on H.R. 8.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Michigan?
There was no objection.
Mr. CAMP. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise today to urge what a colleague from Georgia
called a legacy vote--making permanent the tax cuts Republicans enacted
back in 2001 and 2003. I couldn't agree more, and let me say why:
because we're making permanent tax policies Republicans originally
crafted.
Now back then, despite having a majority in the House, a majority in
the Senate, and a Republican in the White
[[Page H7552]]
House, those policies were only temporary. That's because Democrats
refused to join Republicans in providing tax relief for working
families. Well, after more than a decade of criticizing these tax cuts,
Democrats are finally joining with Republicans in making these tax cuts
permanent. Republicans and the American people are getting something
really important--permanent tax relief.
As big as that is, and it's only the first step when it comes to
taxes, this legislation settles the level of revenue Washington should
bring in. Next, we need to make the Tax Code simpler and fairer for
families and small businesses, and we need to pursue comprehensive and
fundamental tax reform to create the jobs we need and to make American
businesses and workers competitive in the global marketplace. Simply
put, the Tax Code is a nightmare. It's too complex, too time-consuming,
and too costly. About 60 percent of individual taxpayers have to hire
others to do their tax returns because the code is too complicated. As
a result, if tax compliance were an industry, it would be one of the
largest in the United States and would consume 6.1 billion hours, the
equivalent of more than 3 million full-time workers.
And yes, it's too costly. In 2008 alone, taxpayers spent $163 billion
complying with the individual and corporate income tax rules. Add to
that the fact that the U.S. has the highest corporate tax rate in the
OECD and an outdated system of taxation, and it's not too difficult to
imagine why many don't view America as an attractive place to invest
and hire.
Nothing about the bill we're considering tonight changes any of those
realities. That's why the Ways and Means Committee will pursue
comprehensive tax reform in the next Congress. So by making Republican
tax cuts permanent, we're one step closer to comprehensive tax reform
that will help strengthen our economy and create more and higher
paychecks for American workers.
I urge my colleagues to support this bill and get us one step closer
to tax reform.
I reserve the balance of my time.
Mr. LEVIN. Mr. Speaker, I yield myself such time as I may consume.
This is a bipartisan bill, and I will try to keep it within that spirit
to the extent possible.
As we are here today on January 1, hours away from Americans
returning to work, markets reopening around the world, and all eyes
focusing on whether this institution can govern, this legislation
allows us to get done what we need to get done.
{time} 2150
This bill is vital for our Nation's economic well-being and, I want
to emphasize, for its standing as the world's most important economy.
It is vital for 114 million middle class families whose tax cuts are
made permanent. It's vital for 2 million unemployed American workers
who need continuation of their insurance while they continue to look
for work.
It is vital for 30 million middle-income Americans who otherwise
would have been hit by the alternative minimum tax. And it's vital for
25, and I emphasize this, 25 million working families and students who
benefit from the Child Tax Credit, the Earned Income Tax Credit and the
American Opportunity Tax Credit, which helps families pay for college.
And it's vital for physicians and millions of their patients who
would have been hurt by drastic cuts in Medicare reimbursement rates.
It's also vital for businesses, through an extension of important tax
provisions such as the R&D credit, and also renewable energy incentives
that must continue in this great country of ours, and bonus
depreciation to encourage business investments.
But I want to emphasize this, somewhat in contrast to what our
chairman has said: this legislation breaks the iron barrier that for
far too long has prevented additional tax revenues from the very
wealthiest. It raises $620 billion in revenue by achieving the
President's goal of asking the wealthiest 2 percent of Americans to pay
more, while protecting 98 percent of families. That's right, that's
what it does. And 97 percent--I want to emphasize this, contrary to
propaganda coming from the other side, 97 percent of small businesses
from any tax increase.
And, lastly--and this needs to be emphasized especially in view, Mr.
Chairman, of your comments--this package is vital for future deficit
reduction efforts, setting the stage for a balanced approach from here
on out by delaying sequestration through 1-1 revenue to spending cuts.
Yesterday, President Obama again said he is committed to deficit
reduction, but he emphasized several times, and I quote:
We've got to do this in a balanced, responsible way with
additional revenues as well as spending cuts, so I urge its
passage.
This bill sets the important precedent I mentioned in terms of
additional revenues as well as spending cuts. The time is urgent. The
time is now. We should support this legislation.
I reserve the balance of my time.
Mr. CAMP. At this time, I yield 3 minutes to the gentleman from
California (Mr. Issa), the distinguished chairman of the Oversight and
Government Reform Committee.
(Mr. ISSA asked and was given permission to revise and extend his
remarks.)
Mr. ISSA. Mr. Speaker, I'd like to be speaking for this bill, but I
can't. In the 12 years, almost to the day, that I've served in this
body, I've voted for every tax cut, every tax cut. And I remember many
of my colleagues, many of them friends to my right here, who, each time
we voted for them said, where is the PAYGO? Where is the pay-for?
Well, Mr. Speaker, there's $4 trillion of new debt and deficit and
there's no pay-for, and there's no anticipation of a pay-for.
In the last night, or the last 2 days, of a Congress, to say that 2
months from now a new Congress is going to do what we're not doing here
today is not something I can bring myself to do.
I would like to vote for this because I do vote for lower taxes. I
want Americans to have lower taxes. But the other day, in conference,
one of my colleagues pointed out that if, in fact, you're spending the
money, you're taxing our future generation.
We are taxing $1.2 trillion next year. We are taxing $1.2 trillion.
We won't collect it, but we are taxing $1.2 trillion of deficit.
The chairman of the Ways and Means Committee, Mr. Camp, rightfully so
said we're also not simplifying the Tax Code. We're not making it
better or fairer. We're not getting rid of the NASCAR loophole. We're
not getting rid of the electric motor scooter low-speed loophole. We're
not getting rid of a whole lot of tax things that are here.
But most importantly, we're not taking things that the President
himself said he would be for, like getting the calculation of chained
CPI, of the consumer price index for Social Security and the Federal
workforce and pensions right, which, would, in fact, reduce the deficit
going forward.
So because of what we're not doing, I cannot believe that this tax
cut will, in fact, be followed with a spending cut to offset any part
of the $4 trillion we're putting on the backs of future generations.
So I thank all of you who will vote for it. I cannot bring myself to
vote for it tonight.
Mr. LEVIN. I yield myself 15 seconds.
We Democrats sat on Ways and Means, time after time, when Republicans
passed tax cuts and never brought $1 to the table to pay for it. They
thought that that was the way to promote economic growth. How wrong
they were.
It's now my privilege to yield 1 minute to a person who has the title
``leader,'' but who has been so much more than a titular leader, who
has valiantly led our efforts, and we owe to Nancy Pelosi a real debt
of gratitude for our being where we are today.
With real pleasure, I yield 1 minute to our distinguished leader, the
gentlewoman from California (Ms. Pelosi).
Ms. PELOSI. I thank the gentleman for yielding. I thank him for his
great leadership as our ranking member on the Ways and Means Committee
and for bringing the clarity to our thinking on this important subject
that we are dealing with this evening.
My colleagues, many of us this morning began the day with the Vice
President of the United States coming to the Democratic Caucus and
speaking to us about legislation that passed the Senate last night 89-
8. That is absolutely historic. It was legislation that
[[Page H7553]]
he helped negotiate, working with the Republican and Democratic leaders
in the United States Senate.
It was a remarkable accomplishment because, as we all know, while we
share the same goals, we sometimes have different paths to achieving
them; and reconciling our differences was a monumental task, especially
with the time growing short.
So we appreciate the leadership of the Vice President. We appreciate
the leadership of the Republican and Democratic leaders in the Senate,
and we thank Speaker Boehner for bringing this legislation to the
floor.
Hopefully, we can duplicate the strong bipartisan vote that the
legislation received in the United States Senate. And why is that
important?
It's important because the American people told us in the election
they wanted us to work together. They have their differences too. They
understand disagreement. They also understand compromise, and that is
what this legislation represents.
I listened attentively to the previous speaker who said he was voting
for the bill for what was not in it. That's an interesting approach. We
can judge all of the legislation that we vote on for what is in it or
vote against it for what is not in it. But at some point you strike a
balance. You balance the equities.
Where do you come out in terms of making a choice?
{time} 2200
I hope we will reflect the will and heed the call of the American
people to work together and follow the lead of the Senate with strong
bipartisan support. What do they want us to do? What are their
priorities? They want us to create jobs. They want us to grow the
economy. They want us to invest in education. They want us to reduce
the deficit. They want us to strengthen the middle class. And that is
what this legislation does. It does so in a way that is not complete
but is an important first step.
We talked much about the gloom and doom of what would happen if we
went over the cliff. Well, let's talk instead about what happens if we
don't go over the cliff. And I believe that we will not, seeing the
vote on the rule this evening. I believe that we will heed the American
people and come together with a strong vote.
By voting for this legislation and passing it in a strong way we'll
increase the confidence of consumers, of the markets, of businesses, of
employers to hire more. We will extend unemployment insurance to people
who have lost their jobs through no fault of their own. This is very,
very important not only to those individuals, but to our economy,
because this is money that is spent immediately injecting demand into
the economy, creating jobs.
We'll extend permanent tax relief for the middle class--more than 98
percent of the American taxpayers, more than 97 percent of America's
small businesses. We will support our middle class and strengthen it by
supporting the child tax credits, tax credits for higher education, the
American opportunity tax credit, the earned income tax credit, and the
like.
Our distinguished ranking member went through some of the provisions,
but it's important to see them in light of what they mean to America's
working families. By voting for this agreement, we will demonstrate
that we have listened to the American people and we have heeded their
call, once again, to work together in a bipartisan way.
I want to salute President Obama. He campaigned on strengthening the
middle class--I think all of us probably did--and this is one way for
us to fulfill that promise. I don't know any piece of legislation that
I've ever voted for that did everything that I thought it should do,
but this is a very, very strong first step as we go into the new year.
Let us send a message to the American people that, again, while this
bill doesn't accomplish all that we need to do to grow the economy,
reduce the deficit, and strengthen the middle class, it is a good way
for us to have a happy start to a new year by taking this first step.
I hope that as, again, you balance the equities, the pros and cons of
this legislation, that you will weigh heavily in favor of the message
that it sends to the kitchen tables of America about the respect we
have for them in meeting their needs, meeting their challenges,
honoring their aspirations. This great middle class is the backbone of
our democracy. Let us all be very patriotic tonight and support our
middle class and support our democracy. Vote ``aye'' on this strong
bipartisan legislation which passed 89-8 in the United States Senate.
Let's step up to the plate to do that in the House of Representatives.
I urge my colleagues to vote ``aye.''
Mr. CAMP. Mr. Speaker, I yield myself 45 seconds.
This is the first step. And now that we have permanently settled how
much revenue the government is going to take out of the economy, we can
move on to next steps. We can and will pursue comprehensive tax reform
this year, in 2013, and next steps. We need to address the fundamental
driver of our deficits and debt, and that is out-of-control spending.
I urge support for this bill, and I reserve the balance of my time.
Mr. LEVIN. I yield myself 15 seconds.
I just don't want the chairman's statement that this settles
permanently how much revenue will be made available. The President has
made clear there has to be a balanced approach, and no one should be
misled into thinking otherwise, no one.
I yield 2 minutes to the distinguished gentleman from New York (Mr.
Rangel).
(Mr. RANGEL asked and was given permission to revise and extend his
remarks.)
Mr. RANGEL. This is no profile in courage for me to be voting for
this bill. It reminds me of the joke we use to have on Lennox Avenue,
where someone stopped hitting you on the head with a hammer and you're
supposed to say, ``Thank you so much for the relief.''
We created this monster. We're the ones that have said--at least the
Congress has said in the majority in the House--do what you have to do
but, for God's sake, don't ask the top 2 percent of the wealthiest
people in this civilized country to pay their fair share. And while
you're thinking about taxing people, why don't you start talking about
cutting people off from unemployment compensation? Why don't you think
about not providing so much for the sick and the aged? Why don't you
start privatizing these things?
This was not the America that I knew when I came to the Congress.
This was something that a handful of people from nowhere came here and
started preaching that we had to destroy Big Government and the
vulnerable who had no lobbyists, who had no one to come to, were saved
by us, by responsible people who came together and said, basically,
Have you lost your mind? What are you doing? How can you go home and
tell the people this is what you created?
And so we paused and common sense has prevailed, and we can at least
go back home and say, Not now, but they're coming again.
They have all types of words that they're using, like the debt
ceiling, but all it means is that they're coming after us and they're
coming after the President. They'll be talking about sequestration.
What will it mean? Cutting benefits from people that need them the
most.
And with all due regards to the other body for once doing what the
House could not get together in doing, we never even saw how they paid
for some of these things, things that we would have handled differently
when we had to pay for those doctors who work very hard for the
Medicare. And people say, Well, how are you paying for them? And
everyone had amnesia in not knowing. Well, after it's over, they'll get
paid, but this Congress will make certain that the providers of health
care are not penalized for this Congress doing the right thing.
Mr. CAMP. I yield 30 seconds to the distinguished gentleman from
Texas (Mr. Gohmert).
Mr. GOHMERT. I just wanted to thank so many on the other side after
all these years for finally acknowledging publicly that 98 percent of
the Bush tax cuts helped the middle class.
Mr. LEVIN. I will yield to my temptation to respond, and I will now
yield 2 minutes to another distinguished gentleman, a member of our
committee, Mr. Neal of Massachusetts.
Mr. NEAL. Thank you, Mr. Levin.
At this late hour, let me point something out and take exception to
what
[[Page H7554]]
Chairman Camp said at the outset of his remarks. We're here tonight
because, despite what the gentleman from Texas just said as well, you
can't cut taxes by $2.3 trillion over 12 years and fight two wars.
When you heard the argument before that was so popular, ``It's the
people's money; it's going to promote economic growth,'' the most
anemic economic growth America's had since Hoover became President, do
you know what's the people's responsibility? Those veterans' hospitals.
We have 1.7 million new veterans and 45,000 wounded. Do you know what
the Republican whip said during those crucial years? Cutting taxes in a
time of war is patriotic. So much for sacrifice for all of us.
When you look back into how we got to this problem--revenue at 15
percent of GDP--that's an Eisenhower figure headed toward Truman. We've
argued in this town about 19 to 21 percent for the better part of 30
years. Fifteen percent of revenue with GDP, 12 years of tax cuts.
Now, this represents a reasonable step forward tonight. And I want to
say with some personal satisfaction that I'm delighted with what we
have finally done to put to rest the alternative minimum tax.
{time} 2210
A million families in Massachusetts were threatened with alternative
minimum tax. It was the responsible position tonight. But I want to
give you a number. You know what these patches have cost us? $2.2
trillion over the life of AMT. The theology that we heard that was so
popular in this institution--tax cuts pay for themselves--you can't
find a mainstream economist today in America that will acknowledge that
problem.
This is a reasonable step forward. Vote for this measure, and let's
get on to fundamental tax reform.
Mr. CAMP. I reserve the balance of my time.
Mr. LEVIN. I yield 2 minutes to the gentleman from Oregon (Mr.
Blumenauer).
Mr. BLUMENAUER. This evening, we're expected to vote on an item that
has many commendable and important items. Unfortunately, too many are
of short duration, much is left out, and most importantly we're losing
a real opportunity for reform.
The SGR is left in a year to torment medical providers again. The
AMT, I'm pleased, is patched--I appreciate the advocacy of my friend,
Mr. Neal. But, in fact, we all know that it should, at a minimum, be
reformed, if not repealed.
We have a body blow to the alternative energy industry, and somehow
it's given a year's reprieve, but it's not what they need or what they
deserve. And because we refuse, at a moment of opportunity, to deal
meaningfully with the national debt--and remember, the budget from my
Republican friends, authored by my colleague, Mr. Ryan, would have
required $6 trillion headroom in the debt ceiling.
Now, we cannot continue to have the world's largest and most
expensive military by far, the lowest taxes of any of the major
economies, the most expensive and inefficient health care, and continue
to allow our country's infrastructure to fall apart while America ages
and grows.
This proposal represents absolutely the least we could have done
under these circumstances and, tragically, institutionalizes for the
next Congress the madness around here of short-term frenzy around self-
inflicted deadlines that have no reality to them. That drives the
American public crazy, and with good reason.
Not only can we do better, I would suggest that we must do better.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. LEVIN. I yield the gentleman an additional 20 seconds.
Mr. BLUMENAUER. It's probably going to pass with overwhelming
bipartisan support. So be it. I can only hope that, in that spirit of
taking a risk on both sides of the aisle--and both parties and the
administration--that the administration and the new Congress gets
serious about reform and delivering services more cost-effectively in
ways, ironically, that people on both sides of the aisle agree with
that are absent in this proposal.
Mr. CAMP. I continue to reserve the balance of my time.
Mr. LEVIN. I now yield 2 minutes to another member of the Ways and
Means Committee, the gentleman from New Jersey (Mr. Pascrell).
Mr. PASCRELL. The American people are the real winners here tonight,
not anyone who navigates these halls. Let's make that clear.
We don't have a perfect bill in front of us--in fact, we've never had
a perfect bill in front of us--but this is a bill which will provide
much needed certainty to millions of middle class American families
that their income taxes will not increase.
Since the recession in 2008, there has been a 25 percent increase in
the number of families below the poverty line in my home State of New
Jersey. I'm sure we'll see more as a result of the devastation of
Hurricane Sandy. Lest we forget before tomorrow that we need to respond
to that storm as all of us responded to the other catastrophes over the
past 10 to 15 years. We should not have exceptions, particularly from
those States who are donor States. If you want to get into nickels and
dimes, then let's get into nickels and dimes. We've done our share and
will continue to do it. We want everybody to step up to the plate.
We've been able to help families in need by extending the earned
income tax credit to 563,000 New Jersey taxpayers, who will earn an
average of $2,169 more because of the program. We have also helped
460,000 New Jersey families take advantage of the child tax credit.
Many of you, regardless of which State you come from, your constituents
have taken advantage of that great program. Almost 400,000 have been
able to use the education tax credits.
Lest we forget what we've done on the alternative minimum tax, the
chairman of the Ways and Means Committee will tell you how many times
alternative minimum tax comes up, and yet we did nothing about it,
pushing it patch to patch, year to year. In just one county in my
district, 87 percent of the families have been affected.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. LEVIN. I yield the gentleman an additional 30 seconds.
Mr. PASCRELL. I ask to have a ``yea'' vote on this legislation so we
can all be proud and be happy for a change when we wake up in the
morning.
Mr. CAMP. I continue to reserve the balance of my time.
Mr. LEVIN. I now yield 2 minutes to the gentlewoman from Pennsylvania
(Ms. Schwartz), our colleague-to-be on Ways and Means.
Ms. SCHWARTZ. I rise this evening in strong support of the Jobs
Protection and Recession Prevention Act of 2012. By passing this bill,
Congress provides economic security and certainty for middle class
families.
This legislation, which passed the Senate with overwhelming
bipartisan support, permanently extends tax cuts for 99 percent of
American families and small businesses, it protects seniors' access to
doctors, it expands affordability of college for millions of young
people, it makes vital investments that build economic growth and new
jobs in this country, and it averts the fiscal cliff and the harmful
economic consequences that might have resulted.
As we close out this Congress, we've reached resolution on a major
issue facing this Congress and our Nation: fairer tax policy for our
families and our businesses.
There's more work to do. In the next Congress, my guess is that it
will be just as difficult to reach bipartisan solutions, but that
doesn't mean it can't be done. Tonight's vote, I hope, demonstrates
that in fact it can, and it benefits American families and American
businesses and America's future.
Mr. CAMP. I continue to reserve the balance of my time.
Mr. LEVIN. I now yield 1 minute to the gentleman from Virginia (Mr.
Moran).
Mr. MORAN. Mr. Speaker, tonight we will pass 83 provisions that
remove Federal revenue, totaling $3.9 trillion, all of it deficit
financed. Now, we will add $64 billion more this year to reducing the
deficit. So if we have a $1.3 trillion annual deficit this year, it
will bring it down to $1.24 trillion.
Now, many of us feel--certainly on this side--that the deficit
doesn't matter, but it does matter because we have another deficit: a
deficit in investment in the education of our children, an investment
in the training and skills of
[[Page H7555]]
our workforce and the fiscal infrastructure of our country. We will
have none of those resources to make that investment after we make this
vote tonight.
The problem is we set up three more fiscal cliffs. We're going to
have to deal with the debt ceiling, we're going to have to deal with
the continuing resolution expiration, and we're going to have to deal
with the sequester. All that's left is spending cuts.
So the only question we have to ask ourselves is, what programs do we
cut and how deep do we cut them? We're going to look back on this night
and regret it, notwithstanding the fact that 95 percent of us
apparently will vote for it.
Mr. CAMP. Mr. Speaker, I would advise the gentleman that I am
prepared to close.
Mr. LEVIN. I now yield 1 minute to the gentleman from New York (Mr.
Engel).
Mr. ENGEL. Mr. Speaker, I rise today to support this bill because
essentially we have two choices here: We either vote for this bill and
we prevent us from going over the cliff, or we go over the cliff. That
would certainly wreak havoc with the market and with everything else.
{time} 2220
But it never should have come to this. We should have been
negotiating and passing a balanced bill. The American people are really
fed up with what they see in the dysfunctional Congress. Harry Truman
back in 1948 when he was running for President campaigned against the
80th, and he called it the ``do nothing'' 80th Congress. That ``do
nothing'' Congress passed three times as many bills as the 112th
Congress did. And so here we are at the last minute, and we are rushing
to pass this bill. It never should have happened this way.
I commend President Obama and Vice President Biden for protecting the
middle class with this and for doing the best that they can; but, my
friends and my colleagues, we are going to have to work to meet in a
sensible center. We are going to have to not play these brinksmanship
games. The American people don't want it.
President Obama won reelection campaigning for the middle class. This
keeps those priorities, and we ought to support it.
Mr. LEVIN. I now yield 2 minutes to Danny Davis, our colleague from
Illinois who is soon rejoining us on Ways and Means.
Mr. DAVIS of Illinois. Mr. Speaker, I have never seen a compromise
where everybody got everything that they wanted or liked everything
that they got. I certainly don't like everything that I see in this
bill, and I certainly didn't get everything that I wanted. But I do
like the fact that senior citizens can go to the doctors because
they're being paid a reasonable rate. I don't like the fact that some
of the health programs in my communities in disproportionate hospitals
all across the country are being cut.
I just got two phone calls a few minutes ago from two constituents,
one from Oak Park, Illinois, and one from Westchester. They both did
all that they could do to convince me to vote against this bill. And
after listening to them, I thanked them, but then I told them, do you
know that 320,000 people in our State relied upon unemployment
insurance benefits last year? I don't know how I could face those
individuals with no hope, no possibility, and no idea that they're
going to have a check in the mail. But when I go to church on Sunday, I
know that I will see people with the assurance that pretty soon an
unemployment check is in the mail. And that's one of the reasons that,
yes, I will vote for this bill, because it's good legislation. People
need it right now--not next year, not next month, and not next week.
Mr. LEVIN. I now, with pleasure, yield 3 minutes to another member of
our leadership, the gentleman from South Carolina (Mr. Clyburn).
Mr. CLYBURN. Mr. Speaker, I thank the gentleman for yielding me the
time.
Mr. Speaker, it's tempting to say it's about time the House put aside
extreme partisanship and work together on compromise to address the
Nation's most pressing issues. But, in reality, it is far past time
that we put aside extreme partisanship. Throughout the entirety of the
112th Congress, we have seen narrow political interests placed ahead of
the public interest.
So here we are on New Year's night, with the clock running out on the
very existence of this Congress, finally considering bipartisan
legislation to provide middle class tax cuts, require the wealthiest
to, once again, pay their fair share so we can grow the economy, create
jobs and protect the most vulnerable in our society. It is indeed well
past time we got about the people's business.
Mr. Speaker, in 2011, I served on the Biden group of both Republican
and Democratic Representatives and Senators who worked with the Vice
President on our Nation's fiscal issues. We made good progress in those
talks until our Republican friends walked away, fearing the wrath of
the Tea Party. I also served on the bipartisan Joint Select Committee
on Deficit Reduction, the so-called supercommittee that spent countless
hours discussing these issues in detail. It was very clear that the
elements of a fair and balanced fiscal plan were achievable. But at the
end of the process, the Republican leaders refused to compromise, and
the supercommittee failed.
So here we are. While this is not a perfect bill, and I have serious
concerns about some of the cuts it contains, it does contain the
element of fairness.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. LEVIN. I yield the gentleman 1 additional minute.
Mr. CLYBURN. This bill protects the middle class and working people
with a more progressive Tax Code than we've had in a very long time.
And this bill prevents the meat-axe approach of budget cuts that could
do more severe damage to our national defense and important domestic
priorities.
Mr. Speaker, I hope that the partisanship of the 112th Congress will
end this week with the end of the 112th Congress, and I am hopeful that
the 113th Congress can work together toward honorable compromises to
get the people's business done. I urge a ``yes'' vote.
Mr. LEVIN. We are going to vote soon, but first we want to hear from
our whip, the distinguished gentleman from Maryland, who has worked so
hard on these issues for decades.
I yield 3 minutes to the gentleman from Maryland (Mr. Hoyer).
Mr. HOYER. I thank the gentleman for his leadership, and I thank Mr.
Camp for his leadership.
There is, of course, a time for partisanship. There is a time for
making our political points, and that time has been, and it will be
again. That time is not tonight.
All of us have traveled throughout this country; and we have heard
our constituents, our neighbors and our friends say, please, don't have
us go over the cliff. They're not sure exactly what ``going over the
cliff'' means, but they intuitively and deeply feel that it will not be
good to go over that cliff. And so we come to this floor tonight with
almost everyone who has spoken saying this bill is not perfect, and, of
course, that observation could be applied to any and all bills that we
consider in this House.
Compromise is not the art of perfection. By its very definition, a
compromise contains elements that neither side likes. But it also
contains pieces both sides can embrace. What we will do tonight is not
only adopt a piece of legislation that will give literally tens of
millions of Americans the assurance that their taxes will not be
raised; millions of small businesses assurance that their taxes will
not be raised; millions of people who, through no fault of their own,
are struggling to find a job and trying to keep bread on their table
the assurance that we will be there to help.
Tonight, we will come together and do something else. With 37\1/2\
hours left to go in the 112th Congress, we will display to all of our
constituents that, yes, in the final analysis, we have the ability to
come together, to act not as Republicans, not as Democrats, but as
Americans, 435 of us sent here by our neighbors and friends to try to
do the best we can, realizing that there are 435 points of view that
sit in this Chamber, and that what we strive to do is to reconcile
those differences to create consensus, for without consensus, democracy
cannot work.
There will be time for partisan differences. There will be time for
partisan confrontation in the days in the 113th Congress. But this
night, as we
[[Page H7556]]
end the 112th Congress, as we have strived mightily to come to an
agreement with great difficulty and realizing that all of us have very
strong feelings, I severely regret that this is not a big, bold, and
balanced plan.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. LEVIN. I yield the gentleman an additional 1 minute.
{time} 2230
Mr. HOYER. We had an opportunity to reach such an agreement in a
bipartisan fashion, and we will not reach a big, bold, and balanced
plan without bipartisanship because the decisions we'll have to make
will be too difficult not to be done in a bipartisan fashion.
This night, we take a positive step, and the people watching us, Mr.
Speaker, on television tonight and reading about their Congress
tomorrow are seeing that we were able to act, not perfectly, but in a
bipartisan fashion to try to take a step towards fiscal responsibility,
fiscal stability, and, yes, caring for those who most need our help in
this country.
I urge my colleagues, as the leader of my party in this Congress
urged us, to support this legislation, not as a Democrat, not as a
Republican, but as an American who understands that our people believe
that action is necessary. And I would urge all of us as we close this
debate to do so in a way that brings us together, not drives us apart;
that reaches out to the best in us, not to the partisan in us.
Mr. Speaker, it is time for this Congress to come together, address
this issue, act together, and pass this bill.
Mr. CAMP. Mr. Speaker, I yield 4 minutes to the distinguished
gentleman from California (Mr. Royce).
Mr. ROYCE. Mr. Speaker, I think what gets lost in the 30-second sound
bites on the fiscal cliff is the real cliff facing this country in the
form of a massive wave of entitlement obligations.
Government accounting doesn't tell the whole story. The actual
liabilities of the Federal Government, the present value of Medicare,
Medicaid, and Social Security programs already exceed $86 trillion. By
2040, our entitlement obligations will consume all of the average
postwar projected tax revenue. We have to come to grips with that.
That means every dollar collected by the IRS would go to pay Social
Security, Medicare, or Medicaid, without reforms. We will have to go
out and borrow to pay for other spending should that happen. It is
unfortunate that the President wasn't willing to engage on this front,
and it is unfortunate that the Senate leader continues to deny the
crisis.
On the day of new year's resolutions, let's hope Senator Reid and
President Obama resolve to be honest about the crisis our Nation faces
with the coming wave of entitlement obligations, making these programs
solvent, and reining in these trillion dollar deficits, which every
economist will tell you is unsustainable. This must be done in 2013.
Without the legislation before us today, without this bill, millions
of Americans would see their tax rates go up, and that would provide a
systemic shock to our already weak economy. This plan that we're about
to vote on locks in a reduced tax rate for middle class families who
otherwise would have seen $3,000 in higher taxes on average. It
permanently holds down the death tax, which impacts so many small
businesses. It permanently protects the middle class from the
alternative minimum tax, and it adjusts that for inflation.
The plan does away with a new entitlement program created in
ObamaCare, and it makes permanent a 15 percent capital gains and
dividends rate for income up to $400,000 for singles, $450,000 for
married couples, and a 20 percent rate for those above. That rate would
have gone to 39.6 percent for dividends. That would have been very
injurious for our capital markets. That would be very injurious for
economic growth if we allowed that to happen.
Tax relief has been achieved. Now is the time for the President to
work with Congress to address government overspending, the underlying
problem.
Mr. LEVIN. If the gentleman from Michigan is ready to close, I'll do
the same and yield myself the balance of my time.
I regret the last statements. It is not correct to say that the
President has not been interested in deficit reduction. That is not
true. It was the Republican leadership in this House that walked away
from a big package. So I think it is troublesome that you come here
apparently saying you're going to vote for this bill by launching an
unfair, untrue representation of what's been going on.
I want it to be very clear, because my guess is that the chairman
will talk again that there has been a permanent level of revenue set by
this bill. That is not correct. If that's an effort to get votes on
your side, I want the record to be clear.
I'm going to close by reading from the President's statement of
yesterday:
I want to make clear that any agreement we have to deal
with these automatic spending cuts that are being threatened
for next month, those also have to be balanced, because,
remember, my principle has always been let's do things in a
balanced, responsible way.
The same is true for any future deficit agreement.
Obviously, we're going to have to do more to reduce our debt
and our deficit. I'm willing to do more--
He already has done substantial.
--but it's going to have to be balanced. We're going to
have to do it in a balanced way.
And then he talks about the need to address Medicare.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. CAMP. I yield myself such time as I may consume.
We've heard some talk about what does the fiscal cliff mean, and I
would say that I agree with my friend from Maryland that if we didn't
address the fiscal cliff issue, every single American would see a tax
increase, and it would be a big tax increase. It would be the biggest
tax increase in the history of the country. That's why it's so
important we're here tonight acting in a permanent way.
And I would say also to my friend from Michigan, he is correct, this
is a permanent tax policy. These are permanent tax provisions we're
putting in this bill that permanently sets the baseline. It permanently
sets how much money the government can take out of the economy. Because
of this, this is the largest tax cut in American history.
I think that's helpful, because the best way to get out of our debt
and deficit is to grow our economy. We can do that through
comprehensive and fundamental tax reform, and this is just the first
step to getting to the ability to strengthen our economy and create the
jobs we so badly need.
We've had years of anemic economic growth. We have projected anemic
economic growth in 2013. It is so important that we try to create jobs
and grow the economy, and we can do that through comprehensive pro-
growth tax reform that lowers rates, broadens the base, and simplifies
a Tax Code that is far too complex.
{time} 2240
As I said in my opening statement, the Tax Code is a nightmare--and
it is--and it's getting almost late enough to have a nightmare
ourselves.
Let me just say that we not only need to grow the economy, but we
also need to address the fundamental causes of our debts and deficits,
and that's out-of-control spending--obligations that we have not got
the financial wherewithal to meet. We need to strengthen those programs
and make sure that they're sustainable for the long term, but we also
need to address the problem that is out-of-control spending.
So this is the first step--permanent tax policy that then sets the
stage for comprehensive and fundamental tax reform--and then addressing
out-of-control spending. This will be several steps. This is an
important one, and this is a critical one for the future of the
country. I urge a ``yes'' vote.
I yield back the balance of my time.
Mr. YOUNG of Florida. Mr. Speaker, I rise today to discuss the
devastating across-the-board sequestration cuts set to take place
across the entire federal government tomorrow--January 2nd. Half of
those cuts would come from the Department of Defense and our national
security programs.
The Department of Defense, industry, and the Congressional Defense
Committees, have repeatedly and consistently warned of the consequences
of letting sequestration take place. If allowed to happen, the impact
to the Department of Defense would be a reduction of 8.2
[[Page H7557]]
percent or $54.6 billion from the fiscal year 2013 budget. The total
sequestration reduction for Defense through fiscal year 2021 amounts to
roughly $492 billion--almost half a trillion dollars.
With military pay and personnel costs exempt from the cuts, the
actual cut to all other accounts increases to 9.4 percent. Even though
the Department of Defense has some limited flexibility to allocate
sequestration cuts in the operating accounts, a computer will cut all
procurement and research accounts proportionally--which will directly
impact more than 2,500 programs and projects. The impact on our
national security and readiness will be severe.
Base operating budgets will be cut, negatively impacting readiness.
Training could be significantly reduced, resulting in unprepared troops
and higher risk to those who deploy. Civilian personnel will certainly
be affected, possibly resulting in hiring freezes and unpaid furloughs.
Fewer weapon systems will be bought, which starts a vicious circle of
rises in unit prices for the remaining weapons. Other major weapon
systems will be reduced or terminated, and current contracts may have
to be terminated or renegotiated, resulting in additional costs to the
government and a loss of favorable contract terms in some cases.
Procurement and Depot Maintenance schedules will be severely impacted,
which is enormously disruptive, especially in shipbuilding and
maintenance when future deployments rely on maintaining schedules.
Earlier this year, Secretary of Defense Leon Panetta testified that
the impact of sequestration on the Department of Defense alone would
drive up our nation's unemployment rate by a full percent. Jobs will be
lost but more importantly, infrastructure and manufacturing
capabilities critical to our national security will be lost. Already
prime contractors have notified their suppliers and subcontractors that
programs are on hold. This has left thousands of small businesses with
no choice but to close their doors and lay off workers as work orders
have dried up.
Our nation's manufacturing base relies upon these workers and their
special skills. We rely on these small businesses to supply critical
components for important weapons systems and platforms.
Mr. Speaker, as you know, the impact of sequestration is very real
and is very imminent. Just consider that if sequestration remains in
place for its full nine years, our nation will be left with the
smallest ground force since 1940, the smallest number of ships since
1915, and the smallest Air Force in history.
When we talk about the fiscal cliff, these across the board cuts to
our defense budget will result in not only an economic fiscal cliff,
but of greatest concern to me, a cliff off which our national security
will fall. This will impact our readiness, our ability to defend our
nation, and our ability to ensure the safety of our all volunteer force
as they operate around the world.
I urge my colleagues in the House to do everything we can to ensure
that sequestration does not become a stark reality tomorrow. Failing to
take action will cause irreversible harm to our nation's security and
violate our Constitutional responsibility to ``provide for the common
defense.''
Mr. THORNBERRY. Mr. Speaker, it was the issue of taxes that led to me
running for Congress in the first place. The question of how much of
your money the government forces from us is central to the relationship
of the individual with government and to the freedom of the individual.
And in the past several years through calls, emails, and personal
meetings, I have heard from many of my constituents about the necessity
of having stability in the tax code.
Making the current tax rates permanent for the vast majority of
Americans, as this bill does, is a major accomplishment. No longer will
the threat of major tax increases because of an expiring law hang over
the heads of taxpayers. Providing tax certainty for individuals and
businesses has long been needed and will allow them to plan and make
decisions. Hopefully, it will help the economy grow. And finally having
an answer on the death tax, although I prefer to abolish it entirely,
is also critical for every farmer, rancher, and small business person
in the country.
The clearest reason to vote against this bill is because of what it
does not do--limit spending. Too much spending, along with low economic
growth, is the reason that our debt is mounting and that our children's
future is in peril. This bill is a missed opportunity to take
meaningful action to deal with that problem, and I supported efforts to
have significant spending cuts included in this measure. But it is not
our last opportunity.
It is always possible to justify voting against a bill for what is
not included in it. One must go further and ask, ``What happens if this
bill is defeated? Will the result be better or worse for the country?''
We also have to make a judgment on what is possible with the current
cast of characters that the American people have elected to office. It
does no good to imagine some ideal measure that could never pass the
Democratically-controlled Senate or that President Barack Obama would
never sign into law. I am a conservative, and I am also a realist.
The answers to those questions lead me to conclude that it is better
to approve this bill at this time, understanding that we must use the
next few weeks of discussion about the debt limit to find a way to
significantly reduce spending and begin to get our economic house in
order. House Republicans do not have to accomplish everything in one
bill, but time is running out for us to get spending under control. In
coming weeks, we will need to consider every tool at our disposal to
convince the White House and the Senate on the imperative of cutting
spending.
Of course, there are provisions in this bill with which I disagree.
For example, extending some of the tax credits from the stimulus bill
and continuing to pay unemployment for an additional year discourage
work and encourage further dependency on government. But they total
about $100 billion out of a $4 trillion bill; the rest of the ``cost''
is due to extending tax provisions that have been in place for more
than a decade.
Stepping back and looking at the whole picture, it seems clear to me
that preventing a tax increase for most Americans and making all tax
rates permanent is an important step for families all across the
country and for the economy as a whole.
Other provisions contained in this bill are important to the people
in my district. One would extend the current farm bill for the
remainder of the fiscal year, allowing farmers and their bankers to
make decisions on planting. That provision also prevents the price of
milk from doubling this week. Another section prevents the 27% cut in
Medicare reimbursement to doctors, which would have made it very
difficult for Medicare patients to find a physician to treat them.
Approving this measure is just a step. Next, we must do whatever is
required to control spending, especially spending in mandatory programs
that constitute nearly two-thirds of the budget. I continue to support
comprehensive tax reform, which can ease the pain to taxpayers, help us
be more competitive in the world, and give our economy a real boost. We
do not have to do all of these things in one bill--and it would be a
mistake to try--but we must do them for the sake of our country and our
future.
Mr. HOLT. Mr. Speaker, as the Congress lurches from self-imposed
crisis to self-imposed crisis, it is easy to understand why members of
the public shake their heads in disgust at the inability of the
government to do the important work of America to help Americans.
The negotiators of this deal should never have agreed to bargain
under a hostage-taking deadline. Of course, for long term economic
stability and growth we must have greater balance between revenue and
expenditures. That means Congress should pay close attention day to
day, month to month, to revenue and to spending and should bring them
more into line. That should always be true, though, not just whenever
someone says there is a crisis.
And say what you will, there is no good reason for a crisis now. The
deadline is artificial. This ``fiscal cliff' is the result of a deal
agreed to in August 2011 when some congressional members who dislike
government tried to prevent the U.S. from paying our debts, and the
White House and Congressional leaders allowed them to hold the
government hostage and then to impose automatic spending cuts and tax
increases in the most thoughtless, ham-handed way. And the negotiators
should never have negotiated with hostage takers, or after the debt-
ceiling confrontation was past, should never have let the hostage-
takers demands live on.
As I see it, the big problem with the fiscal package before us today
is that it was debated and negotiated on the terms set by the hostage
takers in 2011. Instead of talking about what our government needs to
do put people to work, to reduce unemployment, to educate Americans, to
rebuild our roads and bridges, to stimulate vibrant and innovative
industry, to tend to the nourishment, the housing, the cultural well-
being of all Americans--and then doing those things--Congress and
Administration have spent several months neglecting all the important
work in front of us--drought relief, elementary and secondary education
act, violence against women act, bridge repair, better transportation,
better communication, reliable mail delivery, etc. etc. and instead
focusing on such things as whether the marginal tax rate should be 36
percent or 39.6 percent for income earned above $250,000 or $450,000.
Why should the President, why should the Democratic leadership in
Congress, have agreed to negotiate with hostage takers under contrived,
media-fueled deadlines. Why should the President, why should the
Democratic
[[Page H7558]]
leadership in Congress, have accepted the inane premise of the Tea
Party and the Peterson Institute that our nation is defined by its debt
and that we are in effect a poor, debtor nation and that the government
is helpless in the face of that debt. There is no good answer to a bad
question.
The premise of the deal before us is false, and the Democratic
negotiators have been trying hard to find a good outcome based on that
false premise. In fact, we do have a long term problem with the debt.
We should work to correct it, but also we should recognize that it is
long term. Meanwhile we have some immediate problems-- stubborn
unemployment, a sluggish economy, crumbling infrastructure, and
millions of Americans in need of housing and food. We should not allow
our concern for the debt to paralyze our government, and thus prevent
action on the immediate, critical problems affecting our people in the
here and now. The blatant, sad irony is that dealing aggressively with
those immediate problems--the very problems whose solutions are being
pushed aside by the artificial, self-imposed debt crisis--also would be
the best way of dealing with the long term debt problem. It would be
the best way of generating the economic activity and growth necessary
to put our people back to work and our debt in its place.
This deal was done in the wrong way. The postponed crisis will
reappear with the debt crisis and sequestration and tax increases in
March, and the President will be in a weaker, not stronger, position to
deal with the crisis then. However, I do not want to make the situation
worse by weakening the President's hand and weakening the economy by
allowing the government so to speak to ``fall off the cliff', so with
great reluctance I will support this bill.
Mr. LANGEVIN. Mr. Speaker, I rise in support of H.R. 8, the American
Taxpayer Relief Act of 2012. It goes without saying that this is no
one's idea of a perfect bill. However, the American people are counting
on Congress to act to prevent a tax increase on the middle class, just
as our economy is starting to recover.
President Obama, Vice President Biden, and Senate Democrats and
Republicans have done what the voters sent us here to do: find a
balanced approach to help get our fiscal house in order. House
Democrats have been ready to do our part, and I am glad that our
Republican colleagues have finally allowed this legislation to come to
the Floor so that we can ensure our nation does not feel the harmful
effects of the fiscal cliff. It should not have taken this long, and it
should not have been this hard.
While I have serious concerns about certain portions of the
agreement, I am very pleased that--first and foremost--middle class
families will be protected from a tax rate increase. Not only will we
permanently extend middle-class tax cuts, but this deal will also
extend the child tax credit and the earned income tax credit, and it
permanently ensures that the Alternative Minimum Tax will not hit
middle-class families.
Very importantly, this package also includes a critical extension of
unemployment benefits for those still struggling to find work, and I am
grateful for the efforts of Senator Jack Reed and others to ensure this
provision was part of the final deal.
I have called many times in recent months for the expiration of Bush-
era tax rates on income over $250,000, and I am disappointed that this
agreement does not meet that goal. However, while the income threshold
of $450,000 is higher than I would have liked, it is nonetheless a
major step forward that the very wealthiest Americans will begin to pay
their fair share under this bill. Democrats have already agreed to over
a trillion dollars in spending cuts, and it is critical that some
significant revenue is finally being put on the table.
Of particular interest to Rhode Island's wind energy industry, this
bill extends the Production Tax Credit and the Investment Tax Credit
for renewable energy, which will mean critical jobs for our state. It
also provides our doctors with another year of relief from Medicare
reimbursement cuts.
One thing many of my colleagues and I made clear to House leaders was
that we would not support a deal that cut Medicare or Social Security
benefits for our seniors, and I am glad that they listened to us.
Overall, this agreement sets the standard for a balanced approach
that demands shared sacrifice through both spending cuts and revenue
increases. I have long advocated for such an approach, and I am hopeful
that this will be the model for our deficit reduction efforts in coming
years.
Unfortunately, this deal is no ``grand bargain,'' and it sets up yet
another potential crisis mere weeks from now by pushing off a solution
to sequestration for two months, right at the same time we will need to
increase the debt limit and renew government funding. No one wants to
relive this fight, and I would have much preferred to resolve these
perennial issues all at once.
Nonetheless, it is time to act. We have an obligation to move forward
with a balanced compromise, and I believe that we have achieved that. I
urge my colleagues to support this agreement, and I hope that we can
begin the 113th Congress with a renewed commitment to address our
nation's many complex challenges with seriousness and cooperation.
Ms. JENKINS. Mr. Speaker, as the sponsor of the bill to extend
Section 45G of Title 26 in the IRS code, I rise today to clarify the
impact that the extension of this provision within the text of H.R. 8
will have on short line railroads.
As a Certified Public Accountant, I would like to iterate that in IRS
Code section (1)(2) under 45G, it is the intent of the law that
assignments of railroad track miles for purposes of calculating a
railroad track maintenance tax credit for the taxable year that ended
on December 31, 2012 may be completed in 2013, due to the late
extension of the 45G credit in this legislation.
This belated extension should not be construed as an attempt by
Congress to eliminate the ability of short line railroads to use
subsection (b)(2), but rather to preserve that ability for tax year
2012.
The SPEAKER pro tempore. All time for debate has expired.
Pursuant to House Resolution 844, the previous question is ordered.
The question is on the motion by the gentleman from Michigan (Mr.
Camp).
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Recorded Vote
Mr. LEVIN. Mr. Speaker, I demand a recorded vote.
A recorded vote was ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, this 15-
minute vote on the motion to concur will be followed by a 5-minute vote
on the motion to suspend the rules and pass Senate Joint Resolution 44,
if ordered.
The vote was taken by electronic device, and there were--ayes 257,
noes 167, not voting 8, as follows:
[Roll No. 659]
AYES--257
Ackerman
Alexander
Altmire
Andrews
Baca
Baldwin
Barber
Barletta
Bass (CA)
Bass (NH)
Benishek
Berkley
Berman
Biggert
Bilbray
Bishop (GA)
Bishop (NY)
Boehner
Bonamici
Bono Mack
Boren
Boswell
Brady (PA)
Brady (TX)
Braley (IA)
Brown (FL)
Buchanan
Butterfield
Calvert
Camp
Capps
Capuano
Carnahan
Carney
Carson (IN)
Castor (FL)
Chandler
Chu
Cicilline
Clarke (MI)
Clarke (NY)
Clay
Cleaver
Clyburn
Coble
Cohen
Cole
Connolly (VA)
Conyers
Costa
Costello
Courtney
Crenshaw
Critz
Crowley
Cuellar
Cummings
Curson (MI)
Davis (CA)
Davis (IL)
DeGette
DelBene
Denham
Dent
Deutch
Diaz-Balart
Dicks
Dingell
Doggett
Dold
Donnelly (IN)
Doyle
Dreier
Edwards
Ellison
Emerson
Engel
Eshoo
Farr
Fattah
Fitzpatrick
Fortenberry
Frank (MA)
Frelinghuysen
Fudge
Gallegly
Garamendi
Gerlach
Gibson
Gonzalez
Green, Al
Green, Gene
Grijalva
Grimm
Gutierrez
Hahn
Hanabusa
Hanna
Hastings (FL)
Hastings (WA)
Hayworth
Heck
Heinrich
Herger
Herrera Beutler
Higgins
Himes
Hinchey
Hinojosa
Hirono
Hochul
Holden
Holt
Honda
Hoyer
Israel
Jackson Lee (TX)
Johnson (GA)
Johnson (IL)
Johnson (OH)
Johnson, E. B.
Kaptur
Keating
Kelly
Kildee
Kind
King (NY)
Kinzinger (IL)
Kissell
Kline
Kucinich
Lance
Langevin
Larsen (WA)
Larson (CT)
LaTourette
Latta
Lee (CA)
Levin
Lipinski
LoBiondo
Loebsack
Lofgren, Zoe
Lowey
Lucas
Luetkemeyer
Lujan
Lungren, Daniel E.
Lynch
Maloney
Manzullo
Marino
Markey
Matsui
McCarthy (NY)
McCollum
McGovern
McKeon
McMorris Rodgers
McNerney
Meehan
Meeks
Michaud
Miller (MI)
Miller, Gary
Miller, George
Moore
Murphy (CT)
Murphy (PA)
Nadler
Napolitano
Neal
Noem
Olver
Owens
Pallone
Pascrell
Pastor (AZ)
Payne
Pelosi
Perlmutter
Peters
Pingree (ME)
Pitts
Platts
Polis
Price (NC)
Quigley
Rahall
Rangel
Reed
Reichert
Reyes
Ribble
Richardson
Richmond
Rogers (KY)
Rogers (MI)
Ros-Lehtinen
Ross (AR)
Rothman (NJ)
Roybal-Allard
Royce
Runyan
Ruppersberger
Rush
Ryan (OH)
Ryan (WI)
Sanchez, Linda T.
Sanchez, Loretta
Sarbanes
Schakowsky
Schiff
Schock
Schwartz
Scott, David
Serrano
Sessions
Sewell
Sherman
Shimkus
Shuler
Shuster
Simpson
Sires
Slaughter
Smith (NJ)
Smith (TX)
Speier
Stivers
Sullivan
Sutton
Thompson (CA)
Thompson (MS)
Thompson (PA)
Thornberry
Tiberi
Tierney
Tonko
Towns
Tsongas
Turner (NY)
[[Page H7559]]
Upton
Van Hollen
Velazquez
Walden
Walz (MN)
Wasserman Schultz
Waters
Watt
Waxman
Welch
Wilson (FL)
Womack
Yarmuth
Young (AK)
Young (FL)
NOES--167
Adams
Aderholt
Akin
Amash
Amodei
Austria
Bachmann
Bachus
Barrow
Bartlett
Barton (TX)
Becerra
Berg
Bilirakis
Bishop (UT)
Black
Blackburn
Blumenauer
Bonner
Boustany
Brooks
Broun (GA)
Bucshon
Burgess
Campbell
Canseco
Cantor
Capito
Carter
Cassidy
Chabot
Chaffetz
Coffman (CO)
Conaway
Cooper
Cravaack
Crawford
Culberson
DeFazio
DeLauro
DesJarlais
Duffy
Duncan (SC)
Duncan (TN)
Ellmers
Farenthold
Fincher
Flake
Fleischmann
Fleming
Flores
Forbes
Foxx
Franks (AZ)
Gardner
Garrett
Gibbs
Gingrey (GA)
Gohmert
Goodlatte
Gosar
Gowdy
Granger
Graves (GA)
Griffin (AR)
Griffith (VA)
Guinta
Guthrie
Hall
Harper
Harris
Hartzler
Hensarling
Huelskamp
Huizenga (MI)
Hultgren
Hunter
Hurt
Issa
Jenkins
Johnson, Sam
Jones
Jordan
King (IA)
Kingston
Labrador
Lamborn
Landry
Lankford
Latham
Long
Lummis
Mack
Marchant
Massie
Matheson
McCarthy (CA)
McCaul
McClintock
McDermott
McHenry
McIntyre
McKinley
Mica
Miller (FL)
Miller (NC)
Moran
Mulvaney
Myrick
Neugebauer
Nugent
Nunes
Nunnelee
Olson
Palazzo
Paulsen
Pearce
Pence
Peterson
Petri
Poe (TX)
Pompeo
Posey
Price (GA)
Quayle
Rehberg
Renacci
Rigell
Rivera
Roby
Roe (TN)
Rogers (AL)
Rohrabacher
Rokita
Rooney
Roskam
Ross (FL)
Scalise
Schilling
Schmidt
Schrader
Schweikert
Scott (SC)
Scott (VA)
Scott, Austin
Sensenbrenner
Smith (NE)
Smith (WA)
Southerland
Stearns
Stutzman
Terry
Tipton
Turner (OH)
Visclosky
Walberg
Walsh (IL)
Webster
West
Westmoreland
Whitfield
Wilson (SC)
Wittman
Wolf
Woodall
Yoder
Young (IN)
NOT VOTING--8
Buerkle
Burton (IN)
Graves (MO)
Lewis (CA)
Lewis (GA)
Paul
Stark
Woolsey
{time} 2257
So the motion was agreed to.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.
Stated against:
Mr. GRAVES of Missouri. Mr. Speaker, on rollcall No. 659, I was
unavoidably detained. Had I been present, I would have voted ``no.''
Ms. BUERKLE. Mr. Speaker, on rollcall No. 659, had I been present, I
would have voted ``no.''
____________________