[Congressional Record Volume 161, Number 118 (Sunday, July 26, 2015)]
[Senate]
[Pages S5887-S5890]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2521. Mr. THUNE submitted an amendment intended to be proposed by
him to the bill H.R. 22, to amend the Internal Revenue Code of 1986 to
exempt employees with health coverage under TRICARE or the Veterans
Administration from being taken into account for purposes of
determining the employers to which the employer mandate applies under
the Patient Protection and Affordable Care Act; which was ordered to
lie on the table; as follows:
At the appropriate place, insert the following:
SEC. _____. EXTENSION AND SIMPLIFICATION OF RESEARCH CREDIT.
(a) In General.--Subsection (a) of section 41 of the
Internal Revenue Code of 1986 is amended to read as follows:
``(a) In General.--For purposes of section 38, the research
credit determined under this section for the taxable year
shall be an amount equal to the sum of--
``(1) 20 percent of so much of the qualified research
expenses for the taxable year as exceeds 50 percent of the
average qualified research expenses for the 3 taxable years
preceding the taxable year for which the credit is being
determined,
``(2) 20 percent of so much of the basic research payments
for the taxable year as exceeds 50 percent of the average
basic research payments for the 3 taxable years preceding the
taxable year for which the credit is being determined, plus
``(3) 20 percent of the amounts paid or incurred by the
taxpayer in carrying on any trade or business of the taxpayer
during the taxable year (including as contributions) to an
energy research consortium for energy research.''.
(b) Special Rules and Termination of Base Amount
Calculation.--
(1) In general.--Subsection (c) of section 41 of the
Internal Revenue Code of 1986 is amended to read as follows:
``(c) Special Rules.--
``(1) Special rule in case of no qualified research
expenses in any of 3 preceding taxable years.--In the case of
a taxpayer that has no qualified research expenses in any one
of the 3 taxable years preceding the taxable year for which
the credit is being determined--
``(A) the amount of the credit under this section for such
taxable year relating to
[[Page S5888]]
qualified research expenses shall be determined under this
paragraph and not under subsection (a)(1), and
``(B) such credit shall be equal to 10 percent of the
qualified research expenses for the taxable year.
``(2) Special rule in case of no basic research payments in
any of 3 preceding taxable years.--In the case of a taxpayer
that has no basic research payments in any one of the 3
taxable years preceding the taxable year for which the credit
is being determined--
``(A) the credit under this section for such taxable year
relating to basic research payments shall be determined under
this paragraph and not under subsection (a)(2), and
``(B) such credit shall be equal to 10 percent of the basic
research payments for the taxable year.
``(3) Consistent treatment of expenses.--
``(A) In general.--Notwithstanding whether the period for
filing a claim for credit or refund has expired for any
taxable year taken into account in determining the average
qualified research expenses or average basic research
payments for purposes of subsection (a), the qualified
research expenses and basic research payments taken into
account in determining such averages shall be determined on a
basis consistent with the determination of qualified research
expenses and basic research payments, respectively, for the
credit year.
``(B) Prevention of distortions.--The Secretary may
prescribe regulations to prevent distortions in calculating a
taxpayer's qualified research expenses or basic research
payments caused by a change in accounting methods used by
such taxpayer between the current year and a year taken into
account in determining the average qualified research
expenses or average basic research payments for purposes of
subsection (a).''.
(2) Simplification of basic research payments
calculation.--Subsection (e) of section 41 of such Code is
amended--
(A) by striking all that precedes paragraph (6) and
inserting the following:
``(e) Basic Research Payments.--For purposes of this
section--
``(1) In general.--The term `basic research payment' means,
with respect to any taxable year, any amount paid in cash
during such taxable year by a corporation to any qualified
organization for basic research but only if--
``(A) such payment is pursuant to a written agreement
between such corporation and such qualified organization, and
``(B) such basic research is to be performed by such
qualified organization.
``(2) Exception to requirement that research be performed
by the organization.--In the case of a qualified organization
described in subparagraph (C) or (D) of paragraph (3),
subparagraph (B) of paragraph (1) shall not apply.'',
(B) by redesignating paragraphs (6) and (7) as paragraphs
(3) and (4), respectively, and
(C) in paragraph (4) (as so redesignated), by striking
subparagraphs (B) and (C) and by redesignating subparagraphs
(D) and (E) as subparagraphs (B) and (C), respectively.
(3) Inclusion of qualified research expenses of an acquired
person.--
(A) Partial inclusion of pre-acquisition expenditures.--
Subparagraph (A) of section 41(f)(3) of such Code is amended
to read as follows:
``(A) Acquisitions.--
``(i) In general.--If a person acquires the major portion
of a trade or business of another person (hereinafter in this
paragraph referred to as the `predecessor') or the major
portion of a separate unit of a trade or business of a
predecessor, then the amount of qualified research expenses
or basic research payments paid or incurred by the acquiring
person during the 3 taxable years preceding the taxable year
in which the credit under this section is determined shall be
increased by--
``(I) for purposes of applying this section for the taxable
year in which such acquisition is made, the amount determined
under clause (ii), and
``(II) for purposes of applying this section for any
taxable year after the taxable year in which such acquisition
is made, so much of the qualified research expenses or basic
research payments paid or incurred by the predecessor with
respect to the acquired trade or business during the portion
of the measurement period that is part of the 3-taxable-year
period preceding the taxable year for which the credit is
determined as is attributable to the portion of such trade or
business or separate unit acquired by such person.
``(ii) Amount determined.--The amount determined under this
clause is the amount equal to the product of--
``(I) so much of the qualified research expenses or basic
research payments paid or incurred by the predecessor with
respect to the acquired trade or business during the 3
taxable years before the taxable year in which the
acquisition is made as is attributable to the portion of such
trade or business or separate unit acquired by the acquiring
person, and
``(II) the number of months 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 12.
``(iii) 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 (i) and
(ii) shall refer to the appropriate taxable year of the
acquiring person,
``(II) the qualified research expenses or basic research
payments paid or incurred by 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 months of such taxable year, and
``(III) the amount of such qualified research expenses or
basic research payments taken into account under clauses (i)
and (ii) 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 months occurring
during such taxable year.
``(iv) Measurement period.--For purposes of this
subparagraph, the term `measurement period' means the taxable
year of the acquiring person in which the acquisition is made
and the 3 taxable years of the acquiring person preceding
such taxable year.
``(v) Separation of expenditures.--This subparagraph shall
be applied separately with respect to qualified research
expenses and basic research payments.''.
(B) Expenses of a predecessor.--Subparagraph (B) of section
41(f)(3) of such Code 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 or
basic research payments paid or incurred by the predecessor
during the 3 taxable years preceding such taxable year shall
be reduced--
``(i) in the case of the taxable year in which such
disposition is made, by an amount equal to the product of--
``(I) the amount of qualified research expenses or basic
research payments paid or incurred during such 3 taxable
years with respect to the acquired business, and
``(II) the number of days in the period beginning on the
date of acquisition (as determined for purposes of
subparagraph (A)(ii)(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).
This subparagraph shall be applied separately with respect to
qualified research expenses and basic research payments.''.
(C) Conforming amendments.--
(i) Paragraph (3) of section 41(f) of such Code is amended
by striking subparagraph (C).
(ii) Paragraph (4) of section 41(f) of such Code is amended
by striking ``gross receipts'' and inserting ``basic research
payments''.
(c) Permanent Extension.--
(1) Section 41 of the Internal Revenue Code of 1986 is
amended by striking subsection (h).
(2) Paragraph (1) of section 45C(b) of such Code is amended
by striking subparagraph (D).
(d) Cross-references.--
(1) Paragraph (2) of section 45C(c) of the Internal Revenue
Code of 1986 is amended--
(A) by striking ``base period research expenses'' and
inserting ``average qualified research expenses'', and
(B) by striking ``base period research expenses'' in the
heading and inserting ``average qualified research
expenses''.
(2) Subsection (c) of section 280C of such Code is
amended--
(A) by striking ``basic research expenses (as defined in
section 41(e)(2))'' in paragraph (1) and inserting ``basic
research payments (as defined in section 41(e)(1))'', and
(B) by striking ``basic research expenses'' in paragraph
(2)(B) and inserting ``basic research payments''.
(e) Credit Allowed Against Alternative Minimum Tax in Case
of Eligible Small Business.--Section 38(c)(4)(B) of the
Internal Revenue Code of 1986 is amended by redesignating
clauses (ii) through (ix) as clauses (iii) through (x),
respectively, and by inserting after clause (i) the following
new clause:
``(ii) the credit determined under section 41 for the
taxable year with respect to an eligible small business (as
defined in paragraph (5)(C), after application of rules
similar to the rules of paragraph (5)(D)),''.
(f) Technical Corrections.--Section 409 of the Internal
Revenue Code of 1986 is amended--
(1) by inserting ``, as in effect before the enactment of
the Tax Reform Act of 1986)'' after ``section 41(c)(1)(B)''
in subsection (b)(1)(A),
(2) by inserting ``, as in effect before the enactment of
the Tax Reform Act of 1986'' after ``relating to the employee
stock ownership credit'' in subsection (b)(4),
(3) by inserting ``(as in effect before the enactment of
the Tax Reform Act of 1986)'' after ``section 41(c)(1)(B)''
in subsection (i)(1)(A), and
(4) by striking ``, or subparagraph (A) or (B) of section
48(n)(1)'' in subsection (m) and inserting ``(as in effect
before the enactment of the Tax Reform Act of 1986)''.
(g) Effective Date.--
(1) In general.--Except as provided in paragraphs (2) and
(3), the amendments made by this section shall apply to
taxable years beginning after December 31, 2014.
(2) Permanent extension.--The amendments made by subsection
(c) shall apply to
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amounts paid or incurred after December 31, 2014.
(3) Technical corrections.--The amendments made by
subsection (f) shall take effect on the date of the enactment
of this Act.
SEC. _____. RULE ALLOWING CERTAIN TAX-FREE DISTRIBUTIONS FROM
INDIVIDUAL RETIREMENT ACCOUNTS FOR CHARITABLE
PURPOSES MADE PERMANENT.
(a) In General.--Section 408(d)(8) of the Internal Revenue
Code of 1986 is amended by striking subparagraph (F).
(b) Effective Date.--The amendment made by this section
shall apply to distributions made in taxable years beginning
after December 31, 2014.
SEC. _____. EXTENSION AND EXPANSION OF CHARITABLE DEDUCTION
FOR CONTRIBUTIONS OF FOOD INVENTORY.
(a) Permanent Extension.--Section 170(e)(3)(C) of the
Internal Revenue Code of 1986 is amended by striking clause
(iv).
(b) Increase in Limitation.--Section 170(e)(3)(C) of the
Internal Revenue Code of 1986, as amended by subsection (a),
is amended by striking clause (ii), by redesignating clause
(iii) as clause (iv), and by inserting after clause (i) the
following new clauses:
``(ii) Limitation.--The aggregate amount of such
contributions for any taxable year which may be taken into
account under this section shall not exceed--
``(I) in the case of any taxpayer other than a C
corporation, 15 percent of the taxpayer's aggregate net
income for such taxable year from all trades or businesses
from which such contributions were made for such year,
computed without regard to this section, and
``(II) in the case of a C corporation, 15 percent of
taxable income (as defined in subsection (b)(2)(D)).
``(iii) Rules related to limitation.--
``(I) Carryover.--If such aggregate amount exceeds the
limitation imposed under clause (ii), such excess shall be
treated (in a manner consistent with the rules of subsection
(d)) as a charitable contribution described in clause (i) in
each of the 5 succeeding taxable years in order of time.
``(II) Coordination with overall corporate limitation.--In
the case of any charitable contribution allowable under
clause (ii)(II), subsection (b)(2)(A) shall not apply to such
contribution, but the limitation imposed by such subsection
shall be reduced (but not below zero) by the aggregate amount
of such contributions. For purposes of subsection (b)(2)(B),
such contributions shall be treated as allowable under
subsection (b)(2)(A).''.
(c) Determination of Basis for Certain Taxpayers.--Section
170(e)(3)(C) of the Internal Revenue Code of 1986, as amended
by subsections (a) and (b), is amended by adding at the end
the following new clause:
``(v) Determination of basis for certain taxpayers.--If a
taxpayer--
``(I) does not account for inventories under section 471,
and
``(II) is not required to capitalize indirect costs under
section 263A,
the taxpayer may elect, solely for purposes of subparagraph
(B), to treat the basis of any apparently wholesome food as
being equal to 25 percent of the fair market value of such
food.''.
(d) Determination of Fair Market Value.--Section
170(e)(3)(C) of the Internal Revenue Code of 1986, as amended
by subsections (a), (b), and (c), is amended by adding at the
end the following new clause:
``(vi) Determination of fair market value.--In the case of
any such contribution of apparently wholesome food which
cannot or will not be sold solely by reason of internal
standards of the taxpayer, lack of market, or similar
circumstances, or by reason of being produced by the taxpayer
exclusively for the purposes of transferring the food to an
organization described in subparagraph (A), the fair market
value of such contribution shall be determined--
``(I) without regard to such internal standards, such lack
of market, such circumstances, or such exclusive purpose, and
``(II) by taking into account the price at which the same
or substantially the same food items (as to both type and
quality) are sold by the taxpayer at the time of the
contribution (or, if not so sold at such time, in the recent
past).''.
(e) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to contributions made after the date of the enactment of this
Act, in taxable years ending after such date.
(2) Limitation; applicability to c corporations.--The
amendments made by subsection (b) shall apply to
contributions made in taxable years ending after the date of
the enactment of this Act.
SEC. _____. SPECIAL RULE FOR QUALIFIED CONSERVATION
CONTRIBUTIONS MADE PERMANENT.
(a) In General.--
(1) Individuals.--Subparagraph (E) of section 170(b)(1) of
the Internal Revenue Code of 1986 (relating to contributions
of qualified conservation contributions) is amended by
striking clause (vi).
(2) Corporations.--Subparagraph (B) of section 170(b)(2) of
such Code (relating to qualified conservation contributions)
is amended by striking clause (iii).
(b) Contributions of Capital Gain Real Property Made for
Conservation Purposes by Native Corporations.--
(1) In general.--Section 170(b)(2) of the Internal Revenue
Code of 1986 is amended by redesignating subparagraph (C) as
subparagraph (D), and by inserting after subparagraph (B) the
following new subparagraph:
``(C) Qualified conservation contributions by certain
native corporations.--
``(i) In general.--Any qualified conservation contribution
(as defined in subsection (h)(1)) which--
``(I) is made by a Native Corporation, and
``(II) is a contribution of property which was land
conveyed under the Alaska Native Claims Settlement Act,
shall be allowed to the extent that the aggregate amount of
such contributions does not exceed the excess of the
taxpayer's taxable income over the amount of charitable
contributions allowable under subparagraph (A).
``(ii) Carryover.--If the aggregate amount of contributions
described in clause (i) exceeds the limitation of clause (i),
such excess shall be treated (in a manner consistent with the
rules of subsection (d)(2)) as a charitable contribution to
which clause (i) applies in each of the 15 succeeding taxable
years in order of time.
``(iii) Native corporation.--For purposes of this
subparagraph, the term `Native Corporation' has the meaning
given such term by section 3(m) of the Alaska Native Claims
Settlement Act.''.
(2) Conforming amendments.--
(A) Section 170(b)(2)(A) of such Code is amended by
striking ``subparagraph (B) applies'' and inserting
``subparagraph (B) or (C) applies''.
(B) Section 170(b)(2)(B)(ii) of such Code is amended by
striking ``15 succeeding years'' and inserting ``15
succeeding taxable years''.
(3) Valid existing rights preserved.--Nothing in this
subsection (or any amendment made by this subsection) shall
be construed to modify the existing property rights validly
conveyed to Native Corporations (within the meaning of
section 3(m) of the Alaska Native Claims Settlement Act)
under such Act.
(c) Effective Date.--The amendments made by this section
shall apply to contributions made in taxable years beginning
after December 31, 2014.
SEC. _____. EXPENSING CERTAIN DEPRECIABLE BUSINESS ASSETS FOR
SMALL BUSINESS.
(a) In General.--
(1) Dollar limitation.--Section 179(b)(1) of the Internal
Revenue Code of 1986 is amended by striking ``shall not
exceed--'' and all that follows and inserting ``shall not
exceed $500,000.''.
(2) Reduction in limitation.--Section 179(b)(2) of such
Code is amended by striking ``exceeds--'' and all that
follows and inserting ``exceeds $2,000,000.''.
(b) Computer Software.--Section 179(d)(1)(A)(ii) of the
Internal Revenue Code of 1986 is amended by striking ``, to
which section 167 applies, and which is placed in service in
a taxable year beginning after 2002 and before 2015'' and
inserting ``and to which section 167 applies''.
(c) Election.--Section 179(c)(2) of the Internal Revenue
Code of 1986 is amended--
(1) by striking ``may not be revoked'' and all that follows
through ``and before 2015''; and
(2) by striking ``irrevocable'' in the heading thereof.
(d) Air Conditioning and Heating Units.--Section 179(d)(1)
of the Internal Revenue Code of 1986 is amended by striking
``and shall not include air conditioning or heating units''.
(e) Qualified Real Property.--Section 179(f) of the
Internal Revenue Code of 1986 is amended--
(1) by striking ``beginning after 2009 and before 2015'' in
paragraph (1); and
(2) by striking paragraphs (3) and (4).
(f) Inflation Adjustment.--Section 179(b) of the Internal
Revenue Code of 1986 is amended by adding at the end the
following new paragraph:
``(6) Inflation adjustment.--
``(A) In general.--In the case of any taxable year
beginning after 2015, the dollar amounts in paragraphs (1)
and (2) 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 2014'
for `calendar year 1992' in subparagraph (B) thereof.
``(B) Rounding.--The amount of any increase under
subparagraph (A) shall be rounded to the nearest multiple of
$10,000.''.
(g) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2014.
SEC. _____. REDUCED RECOGNITION PERIOD FOR BUILT-IN GAINS OF
S CORPORATIONS MADE PERMANENT.
(a) In General.--Paragraph (7) of section 1374(d) of the
Internal Revenue Code of 1986 is amended to read as follows:
``(7) Recognition period.--
``(A) In general.--The term `recognition period' means the
5-year period beginning with the first day of the first
taxable year for which the corporation was an S corporation.
For purposes of applying this section to any amount
includible in income by reason of distributions to
shareholders pursuant to section 593(e), the preceding
sentence shall be applied without regard to the phrase `5-
year'.
``(B) Installment sales.--If an S corporation sells an
asset and reports the income from the sale using the
installment method
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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) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2014.
SEC. _____. PERMANENT RULE REGARDING BASIS ADJUSTMENT TO
STOCK OF S CORPORATIONS MAKING CHARITABLE
CONTRIBUTIONS OF PROPERTY.
(a) In General.--Section 1367(a)(2) of the Internal Revenue
Code of 1986 is amended by striking the last sentence.
(b) Effective Date.--The amendment made by this section
shall apply to contributions made in taxable years beginning
after December 31, 2014.
SEC. _____. PERMANENT EXTENSION OF DEDUCTION OF STATE AND
LOCAL GENERAL SALES TAXES.
(a) In General.--Section 164(b)(5) of the Internal Revenue
Code of 1986 is amended by striking subparagraph (I).
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2014.
______