[Congressional Record Volume 161, Number 184 (Thursday, December 17, 2015)]
[House]
[Pages H9390-H9433]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
MILITARY CONSTRUCTION AND VETERANS AFFAIRS AND RELATED AGENCIES
APPROPRIATIONS ACT, 2016
Mr. BRADY of Texas. Mr. Speaker, pursuant to House Resolution 566, as
the designee of the gentleman from Kentucky (Mr. Rogers), I call up the
bill (H.R. 2029) making appropriations for military construction, the
Department of Veterans Affairs, and related agencies for the fiscal
year ending September 30, 2016, and for other purposes, with the Senate
amendment thereto, and ask for its immediate consideration.
The Clerk read the title of the bill.
The SPEAKER pro tempore (Mr. Hultgren). The Clerk will designate the
Senate amendment.
Senate amendment:
Strike all after the enacting clause and insert the
following:
That the following sums are appropriated, out of any money in
the Treasury not otherwise appropriated, for military
construction, the Department of Veterans Affairs, and related
agencies for the fiscal year ending September 30, 2016, and
for other purposes, namely:
TITLE I
DEPARTMENT OF DEFENSE
Military Construction, Army
For acquisition, construction, installation, and equipment
of temporary or permanent public works, military
installations, facilities, and real property for the Army as
currently authorized by law, including personnel in the Army
Corps of Engineers and other personal services necessary for
the purposes of this appropriation, and for construction and
operation of facilities in support of the functions of the
Commander in Chief, $663,245,000, to remain available until
September 30, 2020: Provided, That, of this amount, not to
exceed $109,245,000 shall be available for study, planning,
design, architect and engineer services, and host nation
support, as authorized by law, unless the Secretary of the
Army determines that additional obligations are necessary for
such purposes and notifies the Committees on Appropriations
of both Houses of Congress of the determination and the
reasons therefor.
Military Construction, Navy and Marine Corps
For acquisition, construction, installation, and equipment
of temporary or permanent public works, naval installations,
facilities, and real property for the Navy and Marine Corps
as currently authorized by law, including personnel in the
Naval Facilities Engineering Command and other personal
services necessary for the purposes of this appropriation,
$1,619,699,000, to remain available until September 30, 2020:
Provided, That, of this amount, not to exceed $91,649,000
shall be available for study, planning, design, and architect
and engineer services, as authorized by law, unless the
Secretary of the Navy determines that additional obligations
are necessary for such purposes and notifies the Committees
on Appropriations of both Houses of Congress of the
determination and the reasons therefor.
Military Construction, Air Force
For acquisition, construction, installation, and equipment
of temporary or permanent public works, military
installations, facilities, and real property for the Air
Force as currently authorized by law, $1,389,185,000, to
remain available until September 30, 2020: Provided, That,
of this amount, not to exceed $89,164,000 shall be available
for study, planning, design, and architect and engineer
services, as authorized by law, unless the Secretary of Air
Force determines that additional obligations are necessary
for such purposes and notifies the Committees on
Appropriations of both Houses of Congress of the
determination and the reasons therefor.
Military Construction, Defense-Wide
(including transfer of funds)
For acquisition, construction, installation, and equipment
of temporary or permanent public works, installations,
facilities, and real property for activities and agencies of
the Department of Defense (other than the military
departments), as currently authorized by law, $2,290,767,000,
to remain available until September 30, 2020: Provided, That
such amounts of this appropriation as may be determined by
the Secretary of Defense may be transferred to such
appropriations of the Department of Defense available for
military construction or family housing as the Secretary may
designate, to be merged with and to be available for the same
purposes, and for the same time period, as the appropriation
or fund to which transferred: Provided further, That, of the
amount appropriated, not to exceed $160,404,000 shall be
available for study, planning, design, and architect and
engineer services, as authorized by law, unless the Secretary
of Defense determines that additional obligations are
necessary for such purposes and notifies the Committees on
Appropriations of both Houses of Congress of the
determination and the reasons therefor.
Military Construction, Army National Guard
For construction, acquisition, expansion, rehabilitation,
and conversion of facilities for the training and
administration of the Army National Guard, and contributions
therefor, as authorized by chapter 1803 of title 10, United
States Code, and Military Construction Authorization Acts,
$197,237,000, to remain available until September 30, 2020:
Provided, That, of the amount appropriated, not to exceed
$20,337,000 shall be available for study, planning, design,
and architect and engineer services, as authorized by law,
unless the Director of the Army National Guard determines
that additional obligations are necessary for such purposes
and notifies the Committees on Appropriations of both Houses
of Congress of the determination and the reasons therefor.
Military Construction, Air National Guard
For construction, acquisition, expansion, rehabilitation,
and conversion of facilities for the training and
administration of the Air National Guard, and contributions
therefor, as authorized by chapter 1803 of title 10, United
States Code, and Military Construction Authorization Acts,
$138,738,000, to remain available until September 30, 2020:
Provided, That, of the amount appropriated, not to exceed
$5,104,000 shall be available for study, planning, design,
and architect and engineer services, as authorized by law,
unless the Director of the Air National Guard determines that
additional obligations are necessary for such purposes and
notifies the Committees on Appropriations of both Houses of
Congress of the determination and the reasons therefor.
Military Construction, Army Reserve
For construction, acquisition, expansion, rehabilitation,
and conversion of facilities for the training and
administration of the Army Reserve as authorized by chapter
1803 of title 10, United States Code, and Military
Construction Authorization Acts, $113,595,000, to remain
available until September 30, 2020: Provided, That, of the
amount appropriated, not to exceed $9,318,000 shall be
available for study, planning, design, and architect and
engineer services, as authorized by law, unless the Chief of
the Army Reserve determines that additional obligations are
necessary for such purposes and notifies the Committees on
Appropriations of both Houses of Congress of the
determination and the reasons therefor.
Military Construction, Navy Reserve
For construction, acquisition, expansion, rehabilitation,
and conversion of facilities for the training and
administration of the reserve components of the Navy and
Marine Corps as authorized by chapter 1803 of title 10,
United States Code, and Military Construction Authorization
Acts, $36,078,000, to remain available until September 30,
2020: Provided, That, of the amount appropriated, not to
exceed $2,208,000 shall be available for study, planning,
design, and architect and engineer services, as authorized by
law, unless the Secretary of the Navy determines that
additional obligations are necessary for such purposes and
notifies the Committees on Appropriations of both Houses of
Congress of the determination and the reasons therefor.
Military Construction, Air Force Reserve
For construction, acquisition, expansion, rehabilitation,
and conversion of facilities for the training and
administration of the Air Force Reserve as authorized by
chapter 1803 of title 10, United States Code, and Military
Construction Authorization Acts, $65,021,000, to remain
available until September 30, 2020: Provided, That, of the
amount appropriated, not to exceed $13,400,000 shall be
available for study, planning, design, and architect and
engineer services, as authorized by law, unless the Chief of
the Air Force Reserve determines that additional obligations
are necessary for such purposes and notifies the Committees
on Appropriations of both Houses of Congress of the
determination and the reasons therefor.
North Atlantic Treaty Organization
Security Investment Program
For the United States share of the cost of the North
Atlantic Treaty Organization Security Investment Program for
the acquisition and construction of military facilities and
installations
[[Page H9391]]
(including international military headquarters) and for
related expenses for the collective defense of the North
Atlantic Treaty Area as authorized by section 2806 of title
10, United States Code, and Military Construction
Authorization Acts, $120,000,000, to remain available until
expended.
Family Housing Construction, Army
For expenses of family housing for the Army for
construction, including acquisition, replacement, addition,
expansion, extension, and alteration, as authorized by law,
$99,695,000, to remain available until September 30, 2020.
Family Housing Operation and Maintenance, Army
For expenses of family housing for the Army for operation
and maintenance, including debt payment, leasing, minor
construction, principal and interest charges, and insurance
premiums, as authorized by law, $393,511,000.
Family Housing Construction, Navy and Marine Corps
For expenses of family housing for the Navy and Marine
Corps for construction, including acquisition, replacement,
addition, expansion, extension, and alteration, as authorized
by law, $16,541,000, to remain available until September 30,
2020.
Family Housing Operation and Maintenance, Navy and Marine Corps
For expenses of family housing for the Navy and Marine
Corps for operation and maintenance, including debt payment,
leasing, minor construction, principal and interest charges,
and insurance premiums, as authorized by law, $353,036,000.
Family Housing Construction, Air Force
For expenses of family housing for the Air Force for
construction, including acquisition, replacement, addition,
expansion, extension, and alteration, as authorized by law,
$160,498,000, to remain available until September 30, 2020.
Family Housing Operation and Maintenance, Air Force
For expenses of family housing for the Air Force for
operation and maintenance, including debt payment, leasing,
minor construction, principal and interest charges, and
insurance premiums, as authorized by law, $331,232,000.
Family Housing Operation and Maintenance, Defense-Wide
For expenses of family housing for the activities and
agencies of the Department of Defense (other than the
military departments) for operation and maintenance, leasing,
and minor construction, as authorized by law, $58,668,000.
Department of Defense Base Closure Account
For deposit into the Department of Defense Base Closure
Account 1990, established by section 2906(a) of the Defense
Base Closure and Realignment Act of 1990 (10 U.S.C. 2687
note), $251,334,000, to remain available until expended.
Administrative Provisions
Sec. 101. None of the funds made available in this title
shall be expended for payments under a cost-plus-a-fixed-fee
contract for construction, where cost estimates exceed
$25,000, to be performed within the United States, except
Alaska, without the specific approval in writing of the
Secretary of Defense setting forth the reasons therefor.
Sec. 102. Funds made available in this title for
construction shall be available for hire of passenger motor
vehicles.
Sec. 103. Funds made available in this title for
construction may be used for advances to the Federal Highway
Administration, Department of Transportation, for the
construction of access roads as authorized by section 210 of
title 23, United States Code, when projects authorized
therein are certified as important to the national defense by
the Secretary of Defense.
Sec. 104. None of the funds made available in this title
may be used to begin construction of new bases in the United
States for which specific appropriations have not been made.
Sec. 105. None of the funds made available in this title
shall be used for purchase of land or land easements in
excess of 100 percent of the value as determined by the Army
Corps of Engineers or the Naval Facilities Engineering
Command, except: (1) where there is a determination of value
by a Federal court; (2) purchases negotiated by the Attorney
General or the designee of the Attorney General; (3) where
the estimated value is less than $25,000; or (4) as otherwise
determined by the Secretary of Defense to be in the public
interest.
Sec. 106. None of the funds made available in this title
shall be used to: (1) acquire land; (2) provide for site
preparation; or (3) install utilities for any family housing,
except housing for which funds have been made available in
annual Acts making appropriations for military construction.
Sec. 107. None of the funds made available in this title
for minor construction may be used to transfer or relocate
any activity from one base or installation to another,
without prior notification to the Committees on
Appropriations of both Houses of Congress.
Sec. 108. None of the funds made available in this title
may be used for the procurement of steel for any construction
project or activity for which American steel producers,
fabricators, and manufacturers have been denied the
opportunity to compete for such steel procurement.
Sec. 109. None of the funds available to the Department of
Defense for military construction or family housing during
the current fiscal year may be used to pay real property
taxes in any foreign nation.
Sec. 110. None of the funds made available in this title
may be used to initiate a new installation overseas without
prior notification to the Committees on Appropriations of
both Houses of Congress.
Sec. 111. None of the funds made available in this title
may be obligated for architect and engineer contracts
estimated by the Government to exceed $500,000 for projects
to be accomplished in Japan, in any North Atlantic Treaty
Organization member country, or in countries bordering the
Arabian Gulf, unless such contracts are awarded to United
States firms or United States firms in joint venture with
host nation firms.
Sec. 112. None of the funds made available in this title
for military construction in the United States territories
and possessions in the Pacific and on Kwajalein Atoll, or in
countries bordering the Arabian Gulf, may be used to award
any contract estimated by the Government to exceed $1,000,000
to a foreign contractor: Provided, That this section shall
not be applicable to contract awards for which the lowest
responsive and responsible bid of a United States contractor
exceeds the lowest responsive and responsible bid of a
foreign contractor by greater than 20 percent: Provided
further, That this section shall not apply to contract awards
for military construction on Kwajalein Atoll for which the
lowest responsive and responsible bid is submitted by a
Marshallese contractor.
Sec. 113. The Secretary of Defense shall inform the
appropriate committees of both Houses of Congress, including
the Committees on Appropriations, of plans and scope of any
proposed military exercise involving United States personnel
30 days prior to its occurring, if amounts expended for
construction, either temporary or permanent, are anticipated
to exceed $100,000.
Sec. 114. Not more than 20 percent of the funds made
available in this title which are limited for obligation
during the current fiscal year shall be obligated during the
last 2 months of the fiscal year.
Sec. 115. Funds appropriated to the Department of Defense
for construction in prior years shall be available for
construction authorized for each such military department by
the authorizations enacted into law during the current
session of Congress.
Sec. 116. For military construction or family housing
projects that are being completed with funds otherwise
expired or lapsed for obligation, expired or lapsed funds may
be used to pay the cost of associated supervision,
inspection, overhead, engineering and design on those
projects and on subsequent claims, if any.
Sec. 117. Notwithstanding any other provision of law, any
funds made available to a military department or defense
agency for the construction of military projects may be
obligated for a military construction project or contract, or
for any portion of such a project or contract, at any time
before the end of the fourth fiscal year after the fiscal
year for which funds for such project were made available, if
the funds obligated for such project: (1) are obligated from
funds available for military construction projects; and (2)
do not exceed the amount appropriated for such project, plus
any amount by which the cost of such project is increased
pursuant to law.
(including transfer of funds)
Sec. 118. Subject to 30 days prior notification, or 14
days for a notification provided in an electronic medium
pursuant to sections 480 and 2883 of title 10, United States
Code, to the Committees on Appropriations of both Houses of
Congress, such additional amounts as may be determined by the
Secretary of Defense may be transferred to: (1) the
Department of Defense Family Housing Improvement Fund from
amounts appropriated for construction in ``Family Housing''
accounts, to be merged with and to be available for the same
purposes and for the same period of time as amounts
appropriated directly to the Fund; or (2) the Department of
Defense Military Unaccompanied Housing Improvement Fund from
amounts appropriated for construction of military
unaccompanied housing in ``Military Construction'' accounts,
to be merged with and to be available for the same purposes
and for the same period of time as amounts appropriated
directly to the Fund: Provided, That appropriations made
available to the Funds shall be available to cover the costs,
as defined in section 502(5) of the Congressional Budget Act
of 1974, of direct loans or loan guarantees issued by the
Department of Defense pursuant to the provisions of
subchapter IV of chapter 169 of title 10, United States Code,
pertaining to alternative means of acquiring and improving
military family housing, military unaccompanied housing, and
supporting facilities.
(including transfer of funds)
Sec. 119. In addition to any other transfer authority
available to the Department of Defense, amounts may be
transferred from the accounts established by sections
2906(a)(1) and 2906A(a)(1) of the Defense Base Closure and
Realignment Act of 1990 (10 U.S.C. 2687 note), to the fund
established by section 1013(d) of the Demonstration Cities
and Metropolitan Development Act of 1966 (42 U.S.C. 3374) to
pay for expenses associated with the Homeowners Assistance
Program incurred under 42 U.S.C. 3374(a)(1)(A). Any amounts
transferred shall be merged with and be available for the
same purposes and for the same time period as the fund to
which transferred.
Sec. 120. Notwithstanding any other provision of law,
funds made available in this title for operation and
maintenance of family housing shall be the exclusive source
of funds for repair and maintenance of all family housing
units, including general or flag officer quarters: Provided,
That not more than $35,000 per unit may be spent annually for
the maintenance and repair of any general or flag officer
quarters without 30 days prior notification, or 14 days for a
notification provided in an electronic medium pursuant to
sections 480 and 2883 of title 10,
[[Page H9392]]
United States Code, to the Committees on Appropriations of
both Houses of Congress, except that an after-the-fact
notification shall be submitted if the limitation is exceeded
solely due to costs associated with environmental remediation
that could not be reasonably anticipated at the time of the
budget submission: Provided further, That the Under
Secretary of Defense (Comptroller) is to report annually to
the Committees on Appropriations of both Houses of Congress
all operation and maintenance expenditures for each
individual general or flag officer quarters for the prior
fiscal year.
Sec. 121. Amounts contained in the Ford Island Improvement
Account established by subsection (h) of section 2814 of
title 10, United States Code, are appropriated and shall be
available until expended for the purposes specified in
subsection (i)(1) of such section or until transferred
pursuant to subsection (i)(3) of such section.
(including transfer of funds)
Sec. 122. During the 5-year period after appropriations
available in this Act to the Department of Defense for
military construction and family housing operation and
maintenance and construction have expired for obligation,
upon a determination that such appropriations will not be
necessary for the liquidation of obligations or for making
authorized adjustments to such appropriations for obligations
incurred during the period of availability of such
appropriations, unobligated balances of such appropriations
may be transferred into the appropriation ``Foreign Currency
Fluctuations, Construction, Defense'', to be merged with and
to be available for the same time period and for the same
purposes as the appropriation to which transferred.
Sec. 123. Amounts appropriated or otherwise made available
in an account funded under the headings in this title may be
transferred among projects and activities within the account
in accordance with the reprogramming guidelines for military
construction and family housing construction contained in
Department of Defense Financial Management Regulation
7000.14-R, Volume 3, Chapter 7, of February 2009, as in
effect on the date of enactment of this Act.
Sec. 124. None of the funds made available in this title
may be obligated or expended for planning and design and
construction of projects at Arlington National Cemetery.
Sec. 125. For an additional amount for ``Military
Construction, Army'', $34,500,000, to remain available until
September 30, 2020: Provided, That such funds may only be
obligated to carry out construction projects, in priority
order, identified in the Department of the Army's Unfunded
Priority List for Fiscal Year 2016 submitted to Congress:
Provided further, That such funding is subject to
authorization prior to obligation and expenditure of funds to
carry out construction: Provided further, That, not later
than 30 days after enactment of this Act, the Secretary of
the Army shall submit to the Committees on Appropriations of
both Houses of Congress an expenditure plan for funds
provided under this section.
Sec. 126. For an additional amount for ``Military
Construction, Navy and Marine Corps'', $34,320,000, to remain
available until September 30, 2020: Provided, That such
funds may only be obligated to carry out construction
projects, in priority order, identified in the Department of
the Navy's Unfunded Priority List for fiscal year 2016:
Provided further, That such funding is subject to
authorization prior to obligation and expenditure of funds to
carry out construction: Provided further, That, not later
than 30 days after enactment of this Act, the Secretary of
the Navy shall submit to the Committees on Appropriations of
both Houses of Congress an expenditure plan for funds
provided under this section.
Sec. 127. For an additional amount for ``Military
Construction, Army National Guard'', $51,300,000, to remain
available until September 30, 2020: Provided, That such
funds may only be obligated to carry out construction
projects, in priority order, identified in the Department of
the Army's Unfunded Priority List for Fiscal Year 2016
submitted to Congress: Provided further, That such funding
is subject to authorization prior to obligation and
expenditure of funds to carry out construction: Provided
further, That, not later than 30 days after enactment of this
Act, the Secretary of the Army shall submit to the Committees
on Appropriations of both Houses of Congress an expenditure
plan for funds provided under this section.
Sec. 128. For an additional amount for ``Military
Construction, Army Reserve'', $34,200,000, to remain
available until September 30, 2020: Provided, That such
funds may only be obligated to carry out construction
projects, in priority order, identified in the Department of
the Army's Unfunded Priority List for Fiscal Year 2016
submitted to Congress: Provided further, That such funding
is subject to authorization prior to obligation and
expenditure of funds to carry out construction: Provided
further, That, not later than 30 days after enactment of this
Act, the Secretary of the Army shall submit to the Committees
on Appropriations of both Houses of Congress an expenditure
plan for funds provided under this section.
(rescissions of funds)
Sec. 129. Of the unobligated balances available from prior
Appropriations Acts (other than appropriations that were
designated by the Congress as an emergency requirement or as
being for Overseas Contingency Operations/Global War on
Terrorism pursuant to a concurrent resolution on the budget
or the Balanced Budget and Emergency Deficit Control Act of
1985) the following funds are hereby rescinded from the
following accounts and programs in the specified amounts:
``Military Construction, Army'', $45,000,000;
``Military Construction, Air Force'', $46,400,000; and
``Military Construction, Defense-Wide'', $80,500,000.
(rescission of funds)
Sec. 130. Of the unobligated balances made available in
prior appropriations Acts for the fund established in section
1013(d) of the Demonstration Cities and Metropolitan
Development Act of 1966 (42 U.S.C. 3374), $65,000,000 are
hereby rescinded.
Sec. 131. Notwithstanding any other provision of law, none
of the funds appropriated or otherwise made available by this
or any other Act may be used to consolidate or relocate any
element of a United States Air Force Rapid Engineer
Deployable Heavy Operational Repair Squadron Engineer (RED
HORSE) outside of the United States until the Secretary of
the Air Force (1) completes an analysis and comparison of the
cost and infrastructure investment required to consolidate or
relocate a RED HORSE squadron outside of the United States
versus within the United States; (2) provides to the
Committees on Appropriations of both Houses of Congress
(``the Committees'') a report detailing the findings of the
cost analysis; and (3) certifies in writing to the Committees
that the preferred site for the consolidation or relocation
yields the greatest savings for the Air Force: Provided,
That the term ``United States'' in this section does not
include any territory or possession of the United States.
Sec. 132. For an additional amount for ``Military
Construction, Air Force'', $21,000,000, to remain available
until September 30, 2020: Provided, That such funds may only
be obligated to carry out construction projects, in priority
order, identified in the Department of the Air Force's
Unfunded Priority List for Fiscal Year 2016 submitted to
Congress: Provided further, That such funding is subject to
authorization prior to obligation and expenditure of funds to
carry out construction: Provided further, That not later
than 30 days after enactment of this Act, the Secretary of
the Air Force shall submit to the Committees on
Appropriations of both Houses of Congress an expenditure plan
for funds provided under this section.
Sec. 133. For an additional amount for ``Military
Construction, Air National Guard'', $6,100,000, to remain
available until September 30, 2020: Provided, That such
funds may only be obligated to carry out construction
projects, in priority order, identified in the Department of
the Air Force's Unfunded Priority List for Fiscal Year 2016
submitted to Congress: Provided further, That such funding
is subject to authorization prior to obligation and
expenditure of funds to carry out construction: Provided
further, That not later than 30 days after enactment of this
Act, the Secretary of the Air Force shall submit to the
Committees on Appropriations of both Houses of Congress an
expenditure plan for funds provided under this section.
Sec. 134. For an additional amount for ``Military
Construction, Air Force Reserve'', $10,400,000, to remain
available until September 30, 2020: Provided, That such
funds may only be obligated to carry out construction
projects, in priority order, identified in the Department of
the Air Force's Unfunded Priority List for Fiscal Year 2016
submitted to Congress: Provided further, That such funding
is subject to authorization prior to obligation and
expenditure of funds to carry out construction: Provided
further, That not later than 30 days after enactment of this
Act, the Secretary of the Air Force shall submit to the
Committees on Appropriations of both Houses of Congress an
expenditure plan for funds provided under this section.
TITLE II
DEPARTMENT OF VETERANS AFFAIRS
Veterans Benefits Administration
compensation and pensions
(including transfer of funds)
For the payment of compensation benefits to or on behalf of
veterans and a pilot program for disability examinations as
authorized by section 107 and chapters 11, 13, 18, 51, 53,
55, and 61 of title 38, United States Code; pension benefits
to or on behalf of veterans as authorized by chapters 15, 51,
53, 55, and 61 of title 38, United States Code; and burial
benefits, the Reinstated Entitlement Program for Survivors,
emergency and other officers' retirement pay, adjusted-
service credits and certificates, payment of premiums due on
commercial life insurance policies guaranteed under the
provisions of title IV of the Servicemembers Civil Relief Act
(50 U.S.C. App. 541 et seq.) and for other benefits as
authorized by sections 107, 1312, 1977, and 2106, and
chapters 23, 51, 53, 55, and 61 of title 38, United States
Code, $166,271,436,000, to remain available until expended,
of which $87,146,761,000 shall become available on October 1,
2016: Provided, That not to exceed $15,562,000 of the amount
appropriated for fiscal year 2016 and $16,021,000 of the
amount made available for fiscal year 2017 under this heading
shall be reimbursed to ``General Operating Expenses, Veterans
Benefits Administration'', and ``Information Technology
Systems'' for necessary expenses in implementing the
provisions of chapters 51, 53, and 55 of title 38, United
States Code, the funding source for which is specifically
provided as the ``Compensation and Pensions'' appropriation:
Provided further, That such sums as may be earned on an
actual qualifying patient basis, shall be reimbursed to
``Medical Care Collections Fund'' to augment the funding of
individual medical facilities for nursing home care provided
to pensioners as authorized.
readjustment benefits
For the payment of readjustment and rehabilitation benefits
to or on behalf of veterans as authorized by chapters 21, 30,
31, 33, 34, 35, 36, 39, 41, 51, 53, 55, and 61 of title 38,
United States Code, $32,088,826,000, to remain available
until expended, of which $16,743,904,000 shall become
available on October 1, 2016: Provided, That expenses for
rehabilitation program services and
[[Page H9393]]
assistance which the Secretary is authorized to provide under
subsection (a) of section 3104 of title 38, United States
Code, other than under paragraphs (1), (2), (5), and (11) of
that subsection, shall be charged to this account.
veterans insurance and indemnities
For military and naval insurance, national service life
insurance, servicemen's indemnities, service-disabled
veterans insurance, and veterans mortgage life insurance as
authorized by chapters 19 and 21, title 38, United States
Code, $169,080,000, to remain available until expended, of
which $91,920,000 shall become available on October 1, 2016.
veterans housing benefit program fund
For the cost of direct and guaranteed loans, such sums as
may be necessary to carry out the program, as authorized by
subchapters I through III of chapter 37 of title 38, United
States Code: Provided, That such costs, including the cost
of modifying such loans, shall be as defined in section 502
of the Congressional Budget Act of 1974: Provided further,
That, during fiscal year 2016, within the resources
available, not to exceed $500,000 in gross obligations for
direct loans are authorized for specially adapted housing
loans.
In addition, for administrative expenses to carry out the
direct and guaranteed loan programs, $164,558,000.
vocational rehabilitation loans program account
For the cost of direct loans, $31,000, as authorized by
chapter 31 of title 38, United States Code: Provided, That
such costs, including the cost of modifying such loans, shall
be as defined in section 502 of the Congressional Budget Act
of 1974: Provided further, That funds made available under
this heading are available to subsidize gross obligations for
the principal amount of direct loans not to exceed
$2,952,381.
In addition, for administrative expenses necessary to carry
out the direct loan program, $367,000, which may be paid to
the appropriation for ``General Operating Expenses, Veterans
Benefits Administration''.
native american veteran housing loan program account
For administrative expenses to carry out the direct loan
program authorized by subchapter V of chapter 37 of title 38,
United States Code, $1,134,000.
Veterans Health Administration
medical services
For necessary expenses for furnishing, as authorized by
law, inpatient and outpatient care and treatment to
beneficiaries of the Department of Veterans Affairs and
veterans described in section 1705(a) of title 38, United
States Code, including care and treatment in facilities not
under the jurisdiction of the Department, and including
medical supplies and equipment, bioengineering services, food
services, and salaries and expenses of healthcare employees
hired under title 38, United States Code, aid to State homes
as authorized by section 1741 of title 38, United States
Code, assistance and support services for caregivers as
authorized by section 1720G of title 38, United States Code,
loan repayments authorized by section 604 of the Caregivers
and Veterans Omnibus Health Services Act of 2010 (Public Law
111-163; 124 Stat. 1174; 38 U.S.C. 7681 note), and hospital
care and medical services authorized by section 1787 of title
38, United States Code; $3,104,197,000, which shall be in
addition to funds previously appropriated under this heading
that become available on October 1, 2015; and, in addition,
$51,673,000,000, plus reimbursements, shall become available
on October 1, 2016, and shall remain available until
September 30, 2017: Provided, That, of the amount made
available on October 1, 2016, under this heading,
$1,400,000,000 shall remain available until September 30,
2018: Provided further, That, notwithstanding any other
provision of law, the Secretary of Veterans Affairs shall
establish a priority for the provision of medical treatment
for veterans who have service-connected disabilities, lower
income, or have special needs: Provided further, That,
notwithstanding any other provision of law, the Secretary of
Veterans Affairs shall give priority funding for the
provision of basic medical benefits to veterans in enrollment
priority groups 1 through 6: Provided further, That,
notwithstanding any other provision of law, the Secretary of
Veterans Affairs may authorize the dispensing of prescription
drugs from Veterans Health Administration facilities to
enrolled veterans with privately written prescriptions based
on requirements established by the Secretary: Provided
further, That the implementation of the program described in
the previous proviso shall incur no additional cost to the
Department of Veterans Affairs: Provided further, That, of
the amount made available on October 1, 2016, under this
heading, not less than $900,000,000 shall be available for
highly effective Hepatitis C Virus (HCV) clinical treatments
including clinical treatments with modern medications that
have significantly higher cure rates than older medications,
are easier to prescribe, and have fewer and milder side
effects: Provided further, That the Secretary of Veterans
Affairs shall ensure that amounts appropriated to the
Department of Veterans Affairs for medical supplies and
equipment are allocated to ensure the provision of gender
appropriate prosthetics.
medical support and compliance
For necessary expenses in the administration of the
medical, hospital, nursing home, domiciliary, construction,
supply, and research activities, as authorized by law;
administrative expenses in support of capital policy
activities; and administrative and legal expenses of the
Department for collecting and recovering amounts owed the
Department as authorized under chapter 17 of title 38, United
States Code, and the Federal Medical Care Recovery Act (42
U.S.C. 2651 et seq.), $6,524,000,000, plus reimbursements,
shall become available on October 1, 2016, and shall remain
available until September 30, 2017: Provided, That, of the
amount made available on October 1, 2016, under this heading,
$100,000,000 shall remain available until September 30, 2018.
medical facilities
For necessary expenses for the maintenance and operation of
hospitals, nursing homes, domiciliary facilities, and other
necessary facilities of the Veterans Health Administration;
for administrative expenses in support of planning, design,
project management, real property acquisition and
disposition, construction, and renovation of any facility
under the jurisdiction or for the use of the Department; for
oversight, engineering, and architectural activities not
charged to project costs; for repairing, altering, improving,
or providing facilities in the several hospitals and homes
under the jurisdiction of the Department, not otherwise
provided for, either by contract or by the hire of temporary
employees and purchase of materials; for leases of
facilities; and for laundry services, $5,074,000,000, plus
reimbursements, shall become available on October 1, 2016,
and shall remain available until September 30, 2017:
Provided, That, of the amount made available on October 1,
2016, under this heading, $250,000,000 shall remain available
until September 30, 2018.
medical and prosthetic research
For necessary expenses in carrying out programs of medical
and prosthetic research and development as authorized by
chapter 73 of title 38, United States Code, $621,813,000,
plus reimbursements, shall remain available until September
30, 2017: Provided, That such sums are allocated to ensure
the provision of gender appropriate prosthetics and to
conduct research related to toxic exposure.
National Cemetery Administration
For necessary expenses of the National Cemetery
Administration for operations and maintenance, not otherwise
provided for, including uniforms or allowances therefor;
cemeterial expenses as authorized by law; purchase of one
passenger motor vehicle for use in cemeterial operations;
hire of passenger motor vehicles; and repair, alteration or
improvement of facilities under the jurisdiction of the
National Cemetery Administration, $266,220,000, of which not
to exceed $26,600,000 shall remain available until September
30, 2017.
Departmental Administration
general administration
(including transfer of funds)
For necessary operating expenses of the Department of
Veterans Affairs, not otherwise provided for, including
administrative expenses in support of Department-Wide capital
planning, management and policy activities, uniforms, or
allowances therefor; not to exceed $25,000 for official
reception and representation expenses; hire of passenger
motor vehicles; and reimbursement of the General Services
Administration for security guard services, $311,591,000, of
which not to exceed $10,000,000 shall remain available until
September 30, 2017: Provided, That funds provided under this
heading may be transferred to ``General Operating Expenses,
Veterans Benefits Administration''.
board of veterans appeals
For necessary operating expenses of the Board of Veterans
Appeals, $107,884,000, of which not to exceed $10,788,000
shall remain available until September 30, 2017.
general operating expenses, veterans benefits administration
For necessary operating expenses of the Veterans Benefits
Administration, not otherwise provided for, including hire of
passenger motor vehicles, reimbursement of the General
Services Administration for security guard services, and
reimbursement of the Department of Defense for the cost of
overseas employee mail, $2,697,734,000: Provided, That
expenses for services and assistance authorized under
paragraphs (1), (2), (5), and (11) of section 3104(a) of
title 38, United States Code, that the Secretary of Veterans
Affairs determines are necessary to enable entitled veterans:
(1) to the maximum extent feasible, to become employable and
to obtain and maintain suitable employment; or (2) to achieve
maximum independence in daily living, shall be charged to
this account: Provided further, That, of the funds made
available under this heading, not to exceed $160,000,000
shall remain available until September 30, 2017.
information technology systems
For necessary expenses for information technology systems
and telecommunications support, including developmental
information systems and operational information systems; for
pay and associated costs; and for the capital asset
acquisition of information technology systems, including
management and related contractual costs of said
acquisitions, including contractual costs associated with
operations authorized by section 3109 of title 5, United
States Code, $4,106,363,000, plus reimbursements: Provided,
That $1,115,757,000 shall be for pay and associated costs, of
which not to exceed $34,800,000 shall remain available until
September 30, 2017: Provided further, That $2,512,863,000
shall be for operations and maintenance, of which not to
exceed $175,000,000 shall remain available until September
30, 2017: Provided further, That $477,743,000 shall be for
information technology systems development, modernization,
and enhancement, and shall remain available until September
30, 2017: Provided further, That amounts made available for
information technology systems development, modernization,
and enhancement may not be obligated or expended until the
Secretary of Veterans Affairs or the
[[Page H9394]]
Chief Information Officer of the Department of Veterans
Affairs submits to the Committees on Appropriations of both
Houses of Congress a certification of the amounts, in parts
or in full, to be obligated and expended for each development
project: Provided further, That amounts made available for
salaries and expenses, operations and maintenance, and
information technology systems development, modernization,
and enhancement may be transferred among the three
subaccounts after the Secretary of Veterans Affairs requests
from the Committees on Appropriations of both Houses of
Congress the authority to make the transfer and an approval
is issued: Provided further, That amounts made available for
the ``Information Technology Systems'' account for
development, modernization, and enhancement may be
transferred among projects or to newly defined projects:
Provided further, That no project may be increased or
decreased by more than $1,000,000 of cost prior to submitting
a request to the Committees on Appropriations of both Houses
of Congress to make the transfer and an approval is issued,
or absent a response, a period of 30 days has elapsed:
Provided further, That funds under this heading may be used
by the Interagency Program Office through the Department of
Veterans Affairs to develop a standard data reference
terminology model: Provided further, That, of the funds made
available for information technology systems development,
modernization, and enhancement for VistA Evolution, not more
than 25 percent may be obligated or expended until the
Secretary of Veterans Affairs submits to the Committees on
Appropriations of both Houses of Congress, and such
Committees approve, a report that describes: (1) the status
of and changes to the VistA Evolution program plan dated
March 24, 2014 (hereinafter referred to as the ``Plan''), the
VistA 4 product roadmap dated February 26, 2015
(``Roadmap''), and the VistA 4 Incremental Life Cycle Cost
Estimate, dated October 26, 2014; (2) any changes to the
scope or functionality of projects within the VistA Evolution
program as established in the Plan; (3) actual program costs
incurred to date; (4) progress in meeting the schedule
milestones that have been established in the Plan; (5) a
Project Management Accountability System (PMAS) Dashboard
Progress report that identifies each VistA Evolution project
being tracked through PMAS, what functionality it is intended
to provide, and what evaluation scores it has received
throughout development; (6) the definition being used for
interoperability between the electronic health record systems
of the Department of Defense and the Department of Veterans
Affairs, the metrics to measure the extent of
interoperability, the milestones and timeline associated with
achieving interoperability, and the baseline measurements
associated with interoperability; (7) progress toward
developing and implementing all components and levels of
interoperability, including semantic interoperability; (8)
the change management tools in place to facilitate the
implementation of VistA Evolution and interoperability; and
(9) any changes to the governance structure for the VistA
Evolution program and its chain of decisionmaking authority:
Provided further, That the funds made available under this
heading for information technology systems development,
modernization, and enhancement, shall be for the projects,
and in the amounts, specified under this heading in the
report accompanying this Act.
office of inspector general
For necessary expenses of the Office of Inspector General,
to include information technology, in carrying out the
provisions of the Inspector General Act of 1978 (5 U.S.C.
App.), $126,766,000, of which $12,676,000 shall remain
available until September 30, 2017.
construction, major projects
For constructing, altering, extending, and improving any of
the facilities, including parking projects, under the
jurisdiction or for the use of the Department of Veterans
Affairs, or for any of the purposes set forth in sections
316, 2404, 2406 and chapter 81 of title 38, United States
Code, not otherwise provided for, including planning,
architectural and engineering services, construction
management services, maintenance or guarantee period services
costs associated with equipment guarantees provided under the
project, services of claims analysts, offsite utility and
storm drainage system construction costs, and site
acquisition, where the estimated cost of a project is more
than the amount set forth in section 8104(a)(3)(A) of title
38, United States Code, or where funds for a project were
made available in a previous major project appropriation,
$1,027,064,000, of which $967,064,000 shall remain available
until September 30, 2020, and of which $60,000,000 shall
remain available until expended: Provided, That except for
advance planning activities, including needs assessments
which may or may not lead to capital investments, and other
capital asset management related activities, including
portfolio development and management activities, and
investment strategy studies funded through the advance
planning fund and the planning and design activities funded
through the design fund, including needs assessments which
may or may not lead to capital investments, and salaries and
associated costs of the resident engineers who oversee those
capital investments funded through this account, and funds
provided for the purchase of land for the National Cemetery
Administration through the land acquisition line item, none
of the funds made available under this heading shall be used
for any project which has not been approved by the Congress
in the budgetary process: Provided further, That funds made
available under this heading for fiscal year 2016, for each
approved project shall be obligated: (1) by the awarding of a
construction documents contract by September 30, 2016; and
(2) by the awarding of a construction contract by September
30, 2017: Provided further, That the Secretary of Veterans
Affairs shall promptly submit to the Committees on
Appropriations of both Houses of Congress a written report on
any approved major construction project for which obligations
are not incurred within the time limitations established
above: Provided further, That, of the amount made available
on October 1, 2016, under this heading, $490,700,000 for
Veterans Health Administration major construction projects
shall not be available until the Secretary of Veterans
Affairs:
(1) Enters into an agreement with the U.S. Army Corps of
Engineers, to serve as the design and construction agent for
Veterans Health Administration projects with a Total
Estimated Cost of $250,000,000 or above.
(2) That such an agreement will designate the U.S. Army
Corps of Engineers as the design and construction agent to
serve as--
(A) the overall construction project manager, with a
dedicated project delivery team including engineers, medical
facility designers, and professional project managers;
(B) the facility design manager, with a dedicated design
manager and technical support;
(C) the design agent, with standardized and rigorous
facility designs;
(D) the architect/engineer designer; and
(E) the overall construction agent, with a dedicated
construction and technical team during pre-construction,
construction, and commissioning phases.
(3) Certifies in writing that such an agreement is in
effect and will prevent subsequent major construction project
cost overruns, provides a copy of the agreement entered into
(and any required supplementary information) to the
Committees on Appropriations of both Houses of Congress, and
a period of 60 days has elapsed.
construction, minor projects
For constructing, altering, extending, and improving any of
the facilities, including parking projects, under the
jurisdiction or for the use of the Department of Veterans
Affairs, including planning and assessments of needs which
may lead to capital investments, architectural and
engineering services, maintenance or guarantee period
services costs associated with equipment guarantees provided
under the project, services of claims analysts, offsite
utility and storm drainage system construction costs, and
site acquisition, or for any of the purposes set forth in
sections 316, 2404, 2406 and chapter 81 of title 38, United
States Code, not otherwise provided for, where the estimated
cost of a project is equal to or less than the amount set
forth in section 8104(a)(3)(A) of title 38, United States
Code, $378,080,000, to remain available until September 30,
2020, along with unobligated balances of previous
``Construction, Minor Projects'' appropriations which are
hereby made available for any project where the estimated
cost is equal to or less than the amount set forth in such
section: Provided, That funds made available under this
heading shall be for: (1) repairs to any of the nonmedical
facilities under the jurisdiction or for the use of the
Department which are necessary because of loss or damage
caused by any natural disaster or catastrophe; and (2)
temporary measures necessary to prevent or to minimize
further loss by such causes.
grants for construction of state extended care facilities
For grants to assist States to acquire or construct State
nursing home and domiciliary facilities and to remodel,
modify, or alter existing hospital, nursing home, and
domiciliary facilities in State homes, for furnishing care to
veterans as authorized by sections 8131 through 8137 of title
38, United States Code, $100,000,000, to remain available
until expended.
grants for construction of veterans cemeteries
For grants to assist States and tribal organizations in
establishing, expanding, or improving veterans cemeteries as
authorized by section 2408 of title 38, United States Code,
$46,000,000, to remain available until expended.
Administrative Provisions
(including transfer of funds)
Sec. 201. Any appropriation for fiscal year 2016 for
``Compensation and Pensions'', ``Readjustment Benefits'', and
``Veterans Insurance and Indemnities'' may be transferred as
necessary to any other of the mentioned appropriations:
Provided, That, before a transfer may take place, the
Secretary of Veterans Affairs shall request from the
Committees on Appropriations of both Houses of Congress the
authority to make the transfer and such Committees issue an
approval, or absent a response, a period of 30 days has
elapsed.
(including transfer of funds)
Sec. 202. Amounts made available for the Department of
Veterans Affairs for fiscal year 2016, in this Act or any
other Act, under the ``Medical Services'', ``Medical support
and compliance'', and ``Medical Facilities'' accounts may be
transferred among the accounts: Provided, That any transfers
between the ``Medical Services'' and ``Medical Support and
Compliance'' accounts of 1 percent or less of the total
amount appropriated to the account in this or any other Act
may take place subject to notification from the Secretary of
Veterans Affairs to the Committees on Appropriations of both
Houses of Congress of the amount and purpose of the transfer:
Provided further, That any transfers between the ``Medical
Services'' and ``Medical Support and Compliance'' accounts in
excess of 1 percent, or exceeding the cumulative 1 percent
for the fiscal year, may take place only after the Secretary
requests from the Committees on Appropriations of both Houses
of Congress the authority to make the transfer and an
approval is issued: Provided further, That
[[Page H9395]]
any transfers to or from the ``Medical Facilities'' account
may take place only after the Secretary requests from the
Committees on Appropriations of both Houses of Congress the
authority to make the transfer and an approval is issued.
Sec. 203. Appropriations available in this title for
salaries and expenses shall be available for services
authorized by section 3109 of title 5, United States Code;
hire of passenger motor vehicles; lease of a facility or land
or both; and uniforms or allowances therefore, as authorized
by sections 5901 through 5902 of title 5, United States Code.
Sec. 204. No appropriations in this title (except the
appropriations for ``Construction, Major Projects'', and
``Construction, Minor Projects'') shall be available for the
purchase of any site for or toward the construction of any
new hospital or home.
Sec. 205. No appropriations in this title shall be
available for hospitalization or examination of any persons
(except beneficiaries entitled to such hospitalization or
examination under the laws providing such benefits to
veterans, and persons receiving such treatment under sections
7901 through 7904 of title 5, United States Code, or the
Robert T. Stafford Disaster Relief and Emergency Assistance
Act (42 U.S.C. 5121 et seq.)), unless reimbursement of the
cost of such hospitalization or examination is made to the
``Medical Services'' account at such rates as may be fixed by
the Secretary of Veterans Affairs.
Sec. 206. Appropriations available in this title for
``Compensation and pensions'', ``Readjustment benefits'', and
``Veterans insurance and indemnities'' shall be available for
payment of prior year accrued obligations required to be
recorded by law against the corresponding prior year accounts
within the last quarter of fiscal year 2015.
Sec. 207. Appropriations available in this title shall be
available to pay prior year obligations of corresponding
prior year appropriations accounts resulting from sections
3328(a), 3334, and 3712(a) of title 31, United States Code,
except that if such obligations are from trust fund accounts
they shall be payable only from ``Compensation and
Pensions''.
(including transfer of funds)
Sec. 208. Notwithstanding any other provision of law,
during fiscal year 2016, the Secretary of Veterans Affairs
shall, from the National Service Life Insurance Fund under
section 1920 of title 38, United States Code, the Veterans'
Special Life Insurance Fund under section 1923 of title 38,
United States Code, and the United States Government Life
Insurance Fund under section 1955 of title 38, United States
Code, reimburse the ``General operating expenses, Veterans
Benefits Administration'' and ``Information Technology
Systems'' accounts for the cost of administration of the
insurance programs financed through those accounts:
Provided, That reimbursement shall be made only from the
surplus earnings accumulated in such an insurance program
during fiscal year 2016 that are available for dividends in
that program after claims have been paid and actuarially
determined reserves have been set aside: Provided further,
That, if the cost of administration of such an insurance
program exceeds the amount of surplus earnings accumulated in
that program, reimbursement shall be made only to the extent
of such surplus earnings: Provided further, That the
Secretary shall determine the cost of administration for
fiscal year 2016 which is properly allocable to the provision
of each such insurance program and to the provision of any
total disability income insurance included in that insurance
program.
Sec. 209. Amounts deducted from enhanced-use lease
proceeds to reimburse an account for expenses incurred by
that account during a prior fiscal year for providing
enhanced-use lease services, may be obligated during the
fiscal year in which the proceeds are received.
(including transfer of funds)
Sec. 210. Funds available in this title or funds for
salaries and other administrative expenses shall also be
available to reimburse the Office of Resolution Management of
the Department of Veterans Affairs and the Office of
Employment Discrimination Complaint Adjudication under
section 319 of title 38, United States Code, for all services
provided at rates which will recover actual costs but not to
exceed $43,700,000 for the Office of Resolution Management
and $3,400,000 for the Office of Employment Discrimination
Complaint Adjudication: Provided, That payments may be made
in advance for services to be furnished based on estimated
costs: Provided further, That amounts received shall be
credited to the ``General Administration'' and ``Information
Technology Systems'' accounts for use by the office that
provided the service.
(transfer of funds)
Sec. 211. Of the amounts made available to the Department
of Veterans Affairs for fiscal year 2016 for the Office of
Rural Health under the heading ``Medical Services'',
including any advance appropriation for fiscal year 2016
provided in prior appropriation Acts, up to $20,000,000 may
be transferred to and merged with funds appropriated under
the heading ``Grants for Construction of State Extended Care
Facilities''.
Sec. 212. No funds of the Department of Veterans Affairs
shall be available for hospital care, nursing home care, or
medical services provided to any person under chapter 17 of
title 38, United States Code, for a non-service-connected
disability described in section 1729(a)(2) of such title,
unless that person has disclosed to the Secretary of Veterans
Affairs, in such form as the Secretary may require, current,
accurate third-party reimbursement information for purposes
of section 1729 of such title: Provided, That the Secretary
may recover, in the same manner as any other debt due the
United States, the reasonable charges for such care or
services from any person who does not make such disclosure as
required: Provided further, That any amounts so recovered
for care or services provided in a prior fiscal year may be
obligated by the Secretary during the fiscal year in which
amounts are received.
(including transfer of funds)
Sec. 213. Notwithstanding any other provision of law,
proceeds or revenues derived from enhanced-use leasing
activities (including disposal) may be deposited into the
``Construction, Major Projects'' and ``Construction, Minor
Projects'' accounts and be used for construction (including
site acquisition and disposition), alterations, and
improvements of any medical facility under the jurisdiction
or for the use of the Department of Veterans Affairs. Such
sums as realized are in addition to the amount provided for
in ``Construction, Major Projects'' and ``Construction, Minor
Projects''.
Sec. 214. Amounts made available under ``Medical
Services'' are available--
(1) for furnishing recreational facilities, supplies, and
equipment; and
(2) for funeral expenses, burial expenses, and other
expenses incidental to funerals and burials for beneficiaries
receiving care in the Department.
(including transfer of funds)
Sec. 215. Such sums as may be deposited to the Medical
Care Collections Fund pursuant to section 1729A of title 38,
United States Code, may be transferred to ``Medical
Services'', to remain available until expended for the
purposes of that account: Provided, That, for fiscal year
2016, up to $27,000,000 deposited in the Department of
Veterans Affairs Medical Care Collections Fund shall be
transferred to ``Information Technology Systems'', to remain
available until expended, for development of the Medical Care
Collections Fund electronic data exchange provider and payer
system.
Sec. 216. The Secretary of Veterans Affairs may enter into
agreements with Indian tribes and tribal organizations which
are party to the Alaska Native Health Compact with the Indian
Health Service, and Indian tribes and tribal organizations
serving rural Alaska which have entered into contracts with
the Indian Health Service under the Indian Self Determination
and Educational Assistance Act, to provide healthcare,
including behavioral health and dental care. The Secretary
shall require participating veterans and facilities to comply
with all appropriate rules and regulations, as established by
the Secretary. The term ``rural Alaska'' shall mean those
lands sited within the external boundaries of the Alaska
Native regions specified in sections 7(a)(1)-(4) and (7)-(12)
of the Alaska Native Claims Settlement Act, as amended (43
U.S.C. 1606), and those lands within the Alaska Native
regions specified in sections 7(a)(5) and 7(a)(6) of the
Alaska Native Claims Settlement Act, as amended (43 U.S.C.
1606), which are not within the boundaries of the
municipality of Anchorage, the Fairbanks North Star Borough,
the Kenai Peninsula Borough or the Matanuska Susitna Borough.
(including transfer of funds)
Sec. 217. Such sums as may be deposited to the Department
of Veterans Affairs Capital Asset Fund pursuant to section
8118 of title 38, United States Code, may be transferred to
the ``Construction, Major Projects'' and ``Construction,
Minor Projects'' accounts, to remain available until expended
for the purposes of these accounts.
Sec. 218. None of the funds made available in this title
may be used to implement any policy prohibiting the Directors
of the Veterans Integrated Services Networks from conducting
outreach or marketing to enroll new veterans within their
respective Networks.
Sec. 219. The Secretary of Veterans Affairs shall submit
to the Committees on Appropriations of both Houses of
Congress a quarterly report on the financial status of the
Veterans Health Administration.
(including transfer of funds)
Sec. 220. Amounts made available under the ``Medical
Services'', ``Medical Support and Compliance'', ``Medical
Facilities'', ``General Operating Expenses, Veterans Benefits
Administration'', ``General Administration'', and ``National
Cemetery Administration'' accounts for fiscal year 2016 may
be transferred to or from the ``Information Technology
Systems'' account: Provided, That, before a transfer may
take place, the Secretary of Veterans Affairs shall request
from the Committees on Appropriations of both Houses of
Congress the authority to make the transfer and an approval
is issued.
Sec. 221. None of the funds appropriated or otherwise made
available by this Act or any other Act for the Department of
Veterans Affairs may be used in a manner that is inconsistent
with: (1) section 842 of the Transportation, Treasury,
Housing and Urban Development, the Judiciary, the District of
Columbia, and Independent Agencies Appropriations Act, 2006
(Public Law 109-115; 119 Stat. 2506); or (2) section
8110(a)(5) of title 38, United States Code.
Sec. 222. Of the amounts made available to the Department
of Veterans Affairs for fiscal year 2016, in this Act or any
other Act, under the ``Medical Facilities'' account for
nonrecurring maintenance, not more than 20 percent of the
funds made available shall be obligated during the last 2
months of that fiscal year: Provided, That the Secretary may
waive this requirement after providing written notice to the
Committees on Appropriations of both Houses of Congress.
(including transfer of funds)
Sec. 223. Of the amounts appropriated to the Department of
Veterans Affairs for fiscal year 2016 for ``Medical
Services'', ``Medical Support and Compliance'', ``Medical
Facilities'', ``Construction, Minor Projects'', and
``Information
[[Page H9396]]
Technology Systems'', up to $266,303,000, plus
reimbursements, may be transferred to the Joint Department of
Defense-Department of Veterans Affairs Medical Facility
Demonstration Fund, established by section 1704 of the
National Defense Authorization Act for Fiscal Year 2010
(Public Law 111-84; 123 Stat. 3571) and may be used for
operation of the facilities designated as combined Federal
medical facilities as described by section 706 of the Duncan
Hunter National Defense Authorization Act for Fiscal Year
2009 (Public Law 110-417; 122 Stat. 4500): Provided, That
additional funds may be transferred from accounts designated
in this section to the Joint Department of Defense-Department
of Veterans Affairs Medical Facility Demonstration Fund upon
written notification by the Secretary of Veterans Affairs to
the Committees on Appropriations of both Houses of Congress:
Provided further, That section 223 of Title II of Division I
of Public Law 113-235 is repealed.
(including transfer of funds)
Sec. 224. Of the amounts appropriated to the Department of
Veterans Affairs which become available on October 1, 2016,
for ``Medical Services'', ``Medical Support and Compliance'',
and ``Medical Facilities'', up to $265,675,000, plus
reimbursements, may be transferred to the Joint Department of
Defense-Department of Veterans Affairs Medical Facility
Demonstration Fund, established by section 1704 of the
National Defense Authorization Act for Fiscal Year 2010
(Public Law 111-84; 123 Stat. 3571) and may be used for
operation of the facilities designated as combined Federal
medical facilities as described by section 706 of the Duncan
Hunter National Defense Authorization Act for Fiscal Year
2009 (Public Law 110-417; 122 Stat. 4500): Provided, That
additional funds may be transferred from accounts designated
in this section to the Joint Department of Defense-Department
of Veterans Affairs Medical Facility Demonstration Fund upon
written notification by the Secretary of Veterans Affairs to
the Committees on Appropriations of both Houses of Congress.
(including transfer of funds)
Sec. 225. Such sums as may be deposited to the Medical
Care Collections Fund pursuant to section 1729A of title 38,
United States Code, for healthcare provided at facilities
designated as combined Federal medical facilities as
described by section 706 of the Duncan Hunter National
Defense Authorization Act for Fiscal Year 2009 (Public Law
110-417; 122 Stat. 4500) shall also be available: (1) for
transfer to the Joint Department of Defense-Department of
Veterans Affairs Medical Facility Demonstration Fund,
established by section 1704 of the National Defense
Authorization Act for Fiscal Year 2010 (Public Law 111-84;
123 Stat. 3571); and (2) for operations of the facilities
designated as combined Federal medical facilities as
described by section 706 of the Duncan Hunter National
Defense Authorization Act for Fiscal Year 2009 (Public Law
110-417; 122 Stat. 4500).
(transfer of funds)
Sec. 226. Of the amounts available in this title for
``Medical Services'', ``Medical Support and Compliance'', and
``Medical Facilities'', a minimum of $15,000,000 shall be
transferred to the DOD-VA Health Care Sharing Incentive Fund,
as authorized by section 8111(d) of title 38, United States
Code, to remain available until expended, for any purpose
authorized by section 8111 of title 38, United States Code.
(including rescissions of funds)
Sec. 227. (a) Of the funds appropriated in division I of
Public Law 113-235, the following amounts which become
available on October 1, 2015, are hereby rescinded from the
following accounts in the amounts specified:
(1) ``Department of Veterans Affairs, Medical Services'',
$1,400,000,000.
(2) ``Department of Veterans Affairs, Medical Support and
Compliance'', $150,000,000.
(3) ``Department of Veterans Affairs, Medical Facilities'',
$250,000,000.
(b) In addition to amounts provided elsewhere in this Act,
an additional amount is appropriated to the following
accounts in the amounts specified to remain available until
September 30, 2017:
(1) ``Department of Veterans Affairs, Medical Services'',
$1,400,000,000.
(2) ``Department of Veterans Affairs, Medical Support and
Compliance'', $100,000,000.
(3) ``Department of Veterans Affairs, Medical Facilities'',
$250,000,000.
Sec. 228. The Secretary of the Department of Veterans
Affairs shall notify the Committees on Appropriations of both
Houses of Congress of all bid savings in major construction
projects that total at least $5,000,000, or 5 percent of the
programmed amount of the project, whichever is less:
Provided, That such notification shall occur within 14 days
of a contract identifying the programmed amount: Provided
further, That the Secretary shall notify the Committees on
Appropriations of both Houses of Congress 14 days prior to
the obligation of such bid savings and shall describe the
anticipated use of such savings.
Sec. 229. The scope of work for a project included in
``Construction, Major Projects'' may not be increased above
the scope specified for that project in the original
justification data provided to the Congress as part of the
request for appropriations.
Sec. 230. The Secretary of Veterans Affairs shall submit
to the Committees on Appropriations of both Houses of
Congress a quarterly report that contains the following
information from each Veterans Benefits Administration
Regional Office: (1) the average time to complete a
disability compensation claim; (2) the number of claims
pending more than 125 days; (3) error rates; (4) the number
of claims personnel; (5) any corrective action taken within
the quarter to address poor performance; (6) training
programs undertaken; and (7) the number and results of
Quality Review Team audits: Provided, That each quarterly
report shall be submitted no later than 30 days after the end
of the respective quarter.
Sec. 231. Of the funds provided to the Department of
Veterans Affairs for fiscal year 2016 for ``Medical
Services'' and ``Medical Support and Compliance'', a maximum
of $5,000,000 may be obligated from the ``Medical Services''
account and a maximum of $154,596,000 may be obligated from
the ``Medical Support and Compliance'' account for the VistA
Evolution and electronic health record interoperability
projects: Provided, That funds in addition to these amounts
may be obligated for the VistA Evolution and electronic
health record interoperability projects upon written
notification by the Secretary of Veterans Affairs to the
Committees on Appropriations of both Houses of Congress.
Sec. 232. The Secretary of Veterans Affairs shall provide
written notification to the Committees on Appropriations of
both Houses of Congress 15 days prior to organizational
changes which result in the transfer of 25 or more full-time
equivalents from one organizational unit of the Department of
Veterans Affairs to another.
Sec. 233. The Secretary of Veterans Affairs shall provide
on a quarterly basis to the Committees on Appropriations of
both Houses of Congress notification of any single national
outreach and awareness marketing campaign in which
obligations exceed $2,000,000.
Sec. 234. Not more than $4,400,000 of the funds provided
in this Act under the heading ``Department of Veterans
Affairs--Departmental Administration--General
Administration'' may be used for the Office of Congressional
and Legislative Affairs.
Sec. 235. None of the funds available to the Department of
Veterans Affairs, in this or any other Act, may be used to
replace the current system by which the Veterans Integrated
Service Networks select and contract for diabetes monitoring
supplies and equipment.
(rescissions of funds)
Sec. 236. Of the discretionary funds made available in
title II of division I of Public Law 113-235 for the
Department of Veterans Affairs for fiscal year 2016,
$198,000,000 are rescinded from ``Medical Services'',
$42,000,000 are rescinded from ``Medical Support and
Compliance'', and $15,000,000 are rescinded from ``Medical
Facilities''.
(rescissions of funds)
Sec. 237. (a) There is hereby rescinded an aggregate amount
of $55,000,000 from the total budget authority provided for
fiscal year 2016 for discretionary accounts of the Department
of Veterans Affairs in--
(1) this Act; or
(2) any advance appropriation for fiscal year 2016 in prior
appropriation Acts.
(b) The Secretary shall submit to the Committees on
Appropriations of both Houses of Congress a report specifying
the account and amount of each rescission not later than 30
days following enactment of this Act.
(rescission of funds)
Sec. 238. Of the unobligated balances available within the
``DOD-VA Health Care Sharing Incentive Fund'', $50,000,000
are hereby rescinded.
(rescissions of funds)
Sec. 239. Of the discretionary funds made available in
title II of division I of Public Law 113-235 for the
Department of Veterans Affairs for fiscal year 2015,
$1,052,000 are rescinded from ``General Administration'', and
$5,000,000 are rescinded from ``Construction, Minor
Projects''.
(rescissions of funds)
Sec. 240. (a) There is hereby rescinded an aggregate amount
of $90,293,000 from prior year unobligated balances available
within discretionary accounts of the Department of Veterans
Affairs;
(b) No funds may be rescinded from amounts provided under
the following headings:
(1) ``Medical Services'';
(2) ``Medical and Prosthetic Research'';
(3) ``National Cemetery Administration'';
(4) ``Board of Veterans Appeals'';
(5) ``General Operating Expenses, Veterans Benefits
Administration'';
(6) ``Office of Inspector General'';
(7) ``Grants for Construction of State Extended Care
Facilities''; and
(8) ``Grants for Construction of Veterans Cemeteries''.
(c) No amounts may be rescinded from amounts that were
designated by the Congress as an emergency requirement
pursuant to the Concurrent Resolution on the Budget or the
Balanced Budget and Emergency Deficit Control Act of 1985, as
amended.
(d) The Secretary shall submit to the Committees on
Appropriations of both Houses of Congress a report specifying
the account and amount of each rescission not later than 30
days following enactment of this Act.
Sec. 241. Section 2302(a)(2)(A)(viii) of title 5, United
States Code, is amended by inserting ``or under title 38''
after ``of this title''.
Sec. 242. The Department of Veterans Affairs is authorized
to administer financial assistance grants and enter into
cooperative agreements with organizations, utilizing a
competitive selection process, to train and employ homeless
and at-risk veterans in natural resource conservation
management.
Sec. 243. Section 312 of title 38, United States Code, is
amended by adding at the end the following new subsection:
``(c)(1) Whenever the Inspector General, in carrying out
the duties and responsibilities established under the
Inspector General Act of 1978 (5 U.S.C. App.), issues a work
product that makes a recommendation or otherwise suggests
corrective action, the Inspector General shall--
``(A) submit the work product to--
[[Page H9397]]
``(i) the Secretary;
``(ii) the Committee on Veterans' Affairs, the Committee on
Homeland Security and Governmental Affairs, and the Committee
on Appropriations of the Senate;
``(iii) the Committee on Veterans' Affairs, the Committee
on Oversight and Government Reform, and the Committee on
Appropriations of the House of Representatives;
``(iv) if the work product was initiated upon request by an
individual or entity other than the Inspector General, that
individual or entity; and
``(v) any Member of Congress upon request; and
``(B) the Inspector General shall submit all final work
products to--
``(i) if the work product was initiated upon request by an
individual or entity other than the Inspector General, that
individual or entity; and
``(ii) any Member of Congress upon request; and
``(C) not later than 3 days after the work product is
submitted in final form to the Secretary, post the work
product on the Internet website of the Inspector General.
``(2) Nothing in this subsection shall be construed to
authorize the public disclosure of information that is
specifically prohibited from disclosure by any other
provision of law.''.
Sec. 244. None of the funds provided in this Act may be
used to pay the salary of any individual who (a) was the
Executive Director of the Office of Acquisition, Logistics
and Construction, and (b) who retired from Federal service in
the midst of an investigation, initiated by the Department of
Veterans Affairs, into delays and cost overruns associated
with the design and construction of the new medical center in
Aurora, Colorado.
Sec. 245. Of the amounts appropriated or otherwise made
available to the Department of Veterans Affairs for the
``Medical Services'' account for fiscal year 2016 in this Act
of any other Act, not less than $10,000,000 shall be used to
hire additional caregiver support coordinators to support the
programs of assistance and support for caregivers of veterans
under section 1720G of title 38, United States Code.
Sec. 246. None of the funds appropriated or otherwise made
available to the Department of Veterans Affairs in this Act
may be used in a manner that would--
(1) interfere with the ability of a veteran to participate
in a State-approved medicinal marijuana program;
(2) deny any services from the Department to a veteran who
is participating in such a program; or
(3) limit or interfere with the ability of a health care
provider of the Department to make appropriate
recommendations, fill out forms, or take steps to comply with
such a program.
Sec. 247. The Comptroller General of the United States
shall conduct random, periodic audits of medical facilities
of the Department of Veterans Affairs and the Veterans
Integrated Service Networks to assess whether such facilities
and Networks are complying with all standards imposed by law
or by the Secretary of Veterans Affairs with respect to the
timely access of veterans to hospital care, medical services,
and other health care from the Department.
Sec. 248. None of the amounts appropriated or otherwise
made available by this title may be used to transfer any
amount from the Filipino Veterans Equity Compensation Fund to
any other account in the Treasury of the United States.
Sec. 249. None of the amounts appropriated or otherwise
made available by title II may be used to carry out the Home
Marketing Incentive Program of the Department of Veterans
Affairs or to carry out the Appraisal Value Offer Program of
the Department with respect to an employee of the Department
in a senior executive position (as defined in section 713(g)
of title 38, United States Code).
Sec. 250. (a) Not later than one year after the date of the
enactment of this Act, the Comptroller General of the United
States shall submit to the congressional veterans committees
a report evaluating the implementation by the Department of
Veterans Affairs of section 101 of the Veterans Access,
Choice, and Accountability Act of 2014 (Public Law 113-146;
38 U.S.C. 1701 note).
(b) The report required by subsection (a) shall include,
with respect to the implementation of such section 101, an
evaluation of the following:
(1) The effect of such implementation on the reduction in
the use of purchased care by the Department, including delays
or denials of care and interruptions in courses and
continuity of care.
(2) The ability of health care providers to meet the demand
for primary, specialty, and behavioral health care under such
section 101 that cannot reasonably be provided in medical
facilities of the Department.
(3) The efforts of the Department to recruit health care
providers to provide health care under such section 101.
(4) The accuracy of the information provided to veterans
through call centers regarding the receipt of health care
under such section 101.
(5) The timeliness of referrals of veterans by the
Department to health care providers under such section 101.
(6) Unique issues and difficulties in the implementation of
section 101 with respect to veterans residing in rural areas,
the States of Alaska and Hawaii and states lacking a full
service VA Hospital.
(7) With respect to rural areas: (A) an identification of
the average wait times for veterans in rural areas to receive
health care under such section 101, measured from when the
veteran first calls the Department or contracted call center
to request an appointment; (B) an assessment of utilization
rates for health care provided under such section 101 in
rural areas; (C) an assessment of the accessibility of
veterans in rural areas to primary and specialty care at
medical centers of the Department and from non-Department
health care providers under such section 101; (D) an
assessment of the status of any pilot programs created by the
Department to provide care under such section 101; (E) an
identification of the number of health care providers
providing health care under such section 101 to veterans in
rural areas, broken out by primary care providers, specialty
and subspecialty providers, and behavioral health providers
in each Veterans Integrated Service Network.
(8) Recommendations for such improvements to the provision
of health care under such section 101 as the Comptroller
General considers appropriate.
(c) In this section, the term ``congressional veterans
committees'' means the Veterans Affairs Committees of the
United States Senate and the House of Representatives and the
Subcommittee on Military Construction, Veterans Affairs and
Related Agencies of the Committees on Appropriations of the
United States Senate and the House of Representatives.
Sec. 251. Not later than February 1, 2016, the Secretary
of Veterans Affairs shall submit to the Committee on
Veterans' Affairs of the Senate and the Committee on
Veterans' Affairs of the House of Representatives a report
that supplements the report required under section 4002(c) of
the Surface Transportation and Veterans Health Care Choice
Improvement Act of 2015 (Public Law 114-41) and that contains
the following:
(1) A description of the changes in access, if any, of
veterans in Alaska to purchased care from the Department of
Veterans Affairs that have resulted from implementation of
section 101 of the Veterans Access, Choice, and
Accountability Act of 2014 (Public Law 113-146), including
denials of care and interruptions in the course and
continuity of care.
(2) An assessment of the performance of the Department in
providing health care under such section 101 in Alaska,
including--
(A) the performance of call center service provided to
veterans;
(B) the accuracy of call center information provided to
veterans and health care providers;
(C) whether health care providers are agreeing to provide
health care under such section 101 in each of the major
communities in Alaska;
(D) gaps in the availability of health care providers,
disaggregated by primary, specialty, subspecialty, and
behavioral health care;
(E) impediments to the provision of health care under such
section 101; and
(F) plans to mitigate those impediments.
(3) An assessment of the status of health care provider
vacancies at the VA Alaska Healthcare System as of the date
of submittal of the report under this section, including
impediments to filling those vacancies and plans to mitigate
those impediments.
(4) A description of the manner in which the Department
plans to serve the primary, specialty, and behavioral health
care needs of veterans in Alaska if the plan and
recommendations set forth in the report submitted under such
section 4002(c) are implemented, including a description of
specific strategies to be employed by the Department to
address gaps in the provision of health care to veterans and
the supply and demand of health care providers for veterans,
including the roles of tribal health providers and community
providers in addressing those gaps.
Sec. 252. None of the amounts appropriated or otherwise
made available by this title may be used--
(1) to carry out the memorandum of the Veterans Benefits
Administration known as ``Fast Letter 13-10'', issued on May
20, 2013; or
(2) to create or maintain any patient record-keeping system
other than those currently approved by the Department of
Veterans Affairs Central Office in Washington, District of
Columbia.
Sec. 253. (a) Not later than 180 days after the date of the
enactment of this Act, the Comptroller General of the United
States shall submit to Congress a report on the recruitment
and retention of health care providers by the Department of
Veterans Affairs.
(b) The report required by subsection (a) shall include the
following:
(1) An identification of the ratio of veterans to health
care providers of the Department, disaggregated by State.
(2) An analysis of the workload of primary and specialty
care providers of the Department, disaggregated by State.
(3) An assessment of initiatives carried out by the
Veterans Health Administration to recruit and retain health
care providers of the Department.
(4) An assessment of the extent to which the Veterans
Health Administration oversees health care providers of the
Department.
(5) Such recommendations for improving the recruitment and
retention of health care providers of the Department as the
Comptroller General considers appropriate.
Sec. 254. (a) Not later than 180 days after the date of the
enactment of this Act, the Secretary of Veterans Affairs
shall submit to Congress a report on the implementation by
the Department of Veterans Affairs of section 101 of the
Veterans Access, Choice, and Accountability Act of 2014
(Public Law 113-146; 38 U.S.C. 1701 note) in rural areas.
(b) The report required by subsection (a) shall include the
following:
(1) An identification of average wait times for veterans in
rural areas to receive health care under such section 101,
measured from when the veteran first calls the Department to
schedule an appointment.
(2) An assessment of utilization rates for health care
provided under such section 101 in rural areas.
[[Page H9398]]
(3) An assessment of the accessibility of veterans in rural
areas to primary and specialty care at medical centers of the
Department and from non-Department health care providers
under such section 101.
(4) An identification of the number of health care
providers providing health care under such section 101 in
each Veterans Integrated Service Network.
(5) An assessment of the status of any pilot programs
created by the Department to provide care under such section
101 in rural areas.
Sec. 255. Report on Use of Social Security Numbers by
Department of Veterans Affairs. (a) Report Required.--Not
later than 120 days after the date of the enactment of this
Act, the Secretary of Veterans Affairs shall submit to the
appropriate committees of Congress a report on the use of
social security numbers by the Department of Veterans Affairs
and the plans of the Secretary to discontinue the unnecessary
use.
(b) Contents.--The report required by subsection (a) shall
include the following:
(1) A list of documents and records of the Department of
Veterans Affairs that contain social security numbers.
(2) A list of all government and non-government entities
and the numbers of their employees that have access to the
social security numbers of veterans that are stored by the
Department.
(3) A description of how the Department, other governmental
entities, and persons use social security numbers they obtain
from the Department, including a description of any
information sharing arrangements that the Secretary may have
with the heads of other governmental entities.
(4) The number of data breaches of Department of Veterans
Affairs information systems that involved social security
numbers that occurred during the five-year period ending on
the date of the enactment of this Act that the Secretary
discovered or that were reported to the Secretary, a
description and status of the investigations conducted by the
Secretary regarding such breaches, and a description of the
plans of the Secretary to remediate such breaches.
(5) The plans of the Secretary, including a timeline, to
discontinue the unnecessary use by the Department of social
security numbers.
(c) Appropriate Committees of Congress Defined.--In this
section, the term ``appropriate committees of Congress''
means--
(1) the Committee on Veterans' Affairs and the Committee on
Appropriations of the Senate; and
(2) the Committee on Veterans' Affairs and the Committee on
Appropriations of the House of Representatives.
Sec. 256. (a) Not later than 30 days after the date of the
enactment of this Act, the Secretary of Veterans Affairs
shall submit to the appropriate committees of Congress a
report that includes, with respect to the South Texas
Veterans Health Care System of the Department of Veterans
Affairs, the following:
(1) A description of the nature and scope of any
foreseeable increase in wait times for medical appointments.
(2) An assessment of whether a shortage of health care
providers is the primary cause of any such increase in wait
times.
(3) An identification of any other causes of any such
increase in wait times.
(4) A description of any action taken by the Department to
correct any such increase in wait times.
(5) An assessment of any issues relating to access to care.
(6) A plan for how the Secretary will remedy any such
increase in wait times, including a detailed description of
steps to be taken and a timeline for completion.
(b) In this section, the term ``appropriate committees of
Congress'' means--
(1) the Committee on Appropriations and the Committee on
Veterans' Affairs of the Senate; and
(2) the Committee on Appropriations and the Committee on
Veterans' Affairs of the House of Representatives.
Sec. 257. (a) Not later than 30 days after the date of the
enactment of this Act, the Secretary of Veterans Affairs
shall, in consultation with the Secretary of Defense, enter
into a contract with an independent third party described in
subsection (b) to carry out a study on the impact of
participation in combat during service in the Armed Forces on
suicides and other mental health issues among members of the
Armed Forces and veterans.
(b) An independent third party described in this subsection
is an independent third party that has appropriate
credentials to access information in the possession of the
Department of Defense and the Department of Veterans Affairs
that is necessary to carry out the study required under
subsection (a).
Sec. 258. (a) The amount appropriated or otherwise made
available by this title under the heading ``medical and
prosthetic research'' under the heading ``Veterans Health
Administration'' is hereby increased by $8,922,462.
(b) The amount appropriated or otherwise made available by
this title for fiscal year 2016 under the heading ``medical
services'' under the heading ``Veterans Health
Administration'' is hereby reduced by $8,922,462.
Sec. 259. Of the amounts appropriated or otherwise made
available by this title for ``medical services'', not more
than $5,000,000 shall be available to the Secretary of
Veterans Affairs to carry out a pilot program to assess the
feasibility and advisability of awarding grants to veterans
service agencies, veterans service organizations, and
nongovernmental organizations to provide furniture, household
items, and other assistance to formerly homeless veterans who
are moving into permanent housing to facilitate the
settlement of such veterans in such housing.
Sec. 260. Department of Veterans Affairs Action Plan To
Improve Vocational Rehabilitation and Education. (a) In
General.--Not later than 270 days after the date of the
enactment of this Act, the Secretary of Veterans Affairs
shall develop and publish an action plan for improving the
services and assistance provided under chapter 31 of title
38, United States Code.
(b) Elements.--The plan required by subsection (a) shall
include each of the following:
(1) A comprehensive analysis of, and recommendations and a
proposed implementation plan for remedying workload
management challenges at regional offices of the Department
of Veterans Affairs, including steps to reduce counselor
caseloads of veterans participating in a rehabilitation
program under such chapter, particularly for counselors who
are assisting veterans with traumatic brain injury and post-
traumatic stress disorder and counselors with educational and
vocational counseling workloads.
(2) A comprehensive analysis of the reasons for the
disproportionately low percentage of veterans with service-
connected disabilities who served in the Armed Forces after
September 11, 2001, who opt to participate in a
rehabilitation program under such chapter relative to the
percentage of such veterans who use their entitlement to
educational assistance under chapter 33 of title 38, United
States Code, including an analysis of barriers to timely
enrollment in rehabilitation programs under chapter 31 of
such title and of any barriers to a veteran enrolling in the
program of that veteran's choice.
(3) Recommendations and a proposed implementation plan for
encouraging more veterans with service-connected disabilities
who served in the Armed Forces after September 11, 2001, to
participate in rehabilitation programs under chapter 31 of
such title.
(4) A national staff training program for vocational
rehabilitation counselors of the Department that includes the
provision of--
(A) training to assist counselors in understanding the very
profound disorientation experienced by veterans with service-
connected disabilities whose lives and life-plans have been
upended and out of their control because of such
disabilities;
(B) training to assist counselors in working in partnership
with veterans on individual rehabilitation plans; and
(C) training on post-traumatic stress disorder and other
mental health conditions and on moderate to severe traumatic
brain injury that is designed to improve the ability of such
counselors to assist veterans with these conditions,
including by providing information on the broad spectrum of
such conditions and the effect of such conditions on an
individual's abilities and functional limitations.
TITLE III
RELATED AGENCIES
American Battle Monuments Commission
salaries and expenses
For necessary expenses, not otherwise provided for, of the
American Battle Monuments Commission, including the
acquisition of land or interest in land in foreign countries;
purchases and repair of uniforms for caretakers of national
cemeteries and monuments outside of the United States and its
territories and possessions; rent of office and garage space
in foreign countries; purchase (one-for-one replacement basis
only) and hire of passenger motor vehicles; not to exceed
$7,500 for official reception and representation expenses;
and insurance of official motor vehicles in foreign
countries, when required by law of such countries,
$75,100,000, to remain available until expended.
foreign currency fluctuations account
For necessary expenses, not otherwise provided for, of the
American Battle Monuments Commission, such sums as may be
necessary, to remain available until expended, for purposes
authorized by section 2109 of title 36, United States Code.
United States Court of Appeals for Veterans Claims
salaries and expenses
For necessary expenses for the operation of the United
States Court of Appeals for Veterans Claims as authorized by
sections 7251 through 7298 of title 38, United States Code,
$32,141,000: Provided, That $2,500,000 shall be available
for the purpose of providing financial assistance as
described, and in accordance with the process and reporting
procedures set forth, under this heading in Public Law 102-
229.
Department of Defense--Civil
Cemeterial Expenses, Army
salaries and expenses
For necessary expenses for maintenance, operation, and
improvement of Arlington National Cemetery and Soldiers' and
Airmen's Home National Cemetery, including the purchase or
lease of passenger motor vehicles for replacement on a one-
for-one basis only, and not to exceed $1,000 for official
reception and representation expenses, $70,800,000, of which
not to exceed $28,000,000 shall remain available until
September 30, 2018. In addition, such sums as may be
necessary for parking maintenance, repairs and replacement,
to be derived from the ``Lease of Department of Defense Real
Property for Defense Agencies'' account.
Armed Forces Retirement Home
trust fund
For expenses necessary for the Armed Forces Retirement Home
to operate and maintain the Armed Forces Retirement Home--
Washington, District of Columbia, and the Armed Forces
Retirement Home--Gulfport, Mississippi, to be paid from funds
available in the Armed Forces Retirement Home Trust Fund,
$64,300,000, of which $1,000,000 shall remain available until
expended for construction and renovation of the physical
plants at the Armed Forces Retirement Home--
[[Page H9399]]
Washington, District of Columbia, and the Armed Forces
Retirement Home--Gulfport, Mississippi.
Administrative Provisions
Sec. 301. Funds appropriated in this Act under the heading
``Department of Defense--Civil, Cemeterial Expenses, Army'',
may be provided to Arlington County, Virginia, for the
relocation of the federally owned water main at Arlington
National Cemetery, making additional land available for
ground burials.
Sec. 302. Amounts deposited during the current fiscal year
to the special account established under 10 U.S.C. 4727 are
appropriated and shall be available until expended to support
activities at the Army National Military Cemeteries.
Sec. 303. For an additional amount for ``Department of
Defense--Civil Cemeterial Expenses, Army'' in this title,
$30,000,000: Provided, That notwithstanding any other
provision of law, such funds may be transferred to the
Federal Highway Administration, Department of Transportation,
for construction of access roads adjacent to Arlington
National Cemetery to support land acquisition for the
expansion of the cemetery.
TITLE IV
GENERAL PROVISIONS
Sec. 401. No part of any appropriation contained in this
Act shall remain available for obligation beyond the current
fiscal year unless expressly so provided herein.
Sec. 402. None of the funds made available in this Act may
be used for any program, project, or activity, when it is
made known to the Federal entity or official to which the
funds are made available that the program, project, or
activity is not in compliance with any Federal law relating
to risk assessment, the protection of private property
rights, or unfunded mandates.
Sec. 403. Such sums as may be necessary for fiscal year
2016 for pay raises for programs funded by this Act shall be
absorbed within the levels appropriated in this Act.
Sec. 404. No part of any funds appropriated in this Act
shall be used by an agency of the executive branch, other
than for normal and recognized executive-legislative
relationships, for publicity or propaganda purposes, and for
the preparation, distribution, or use of any kit, pamphlet,
booklet, publication, radio, television, or film presentation
designed to support or defeat legislation pending before
Congress, except in presentation to Congress itself.
Sec. 405. All departments and agencies funded under this
Act are encouraged, within the limits of the existing
statutory authorities and funding, to expand their use of
``E-Commerce'' technologies and procedures in the conduct of
their business practices and public service activities.
Sec. 406. Unless stated otherwise, all reports and
notifications required by this Act shall be submitted to the
Subcommittee on Military Construction and Veterans Affairs,
and Related Agencies of the Committee on Appropriations of
the House of Representatives and the Subcommittee on Military
Construction and Veterans Affairs, and Related Agencies of
the Committee on Appropriations of the Senate.
Sec. 407. None of the funds made available in this Act may
be transferred to any department, agency, or instrumentality
of the United States Government except pursuant to a transfer
made by, or transfer authority provided in, this or any other
appropriations Act.
Sec. 408. (a) Any agency receiving funds made available in
this Act, shall, subject to subsections (b) and (c), post on
the public Web site of that agency any report required to be
submitted by the Congress in this or any other Act, upon the
determination by the head of the agency that it shall serve
the national interest.
(b) Subsection (a) shall not apply to a report if--
(1) the public posting of the report compromises national
security; or
(2) the report contains confidential or proprietary
information.
(c) The head of the agency posting such report shall do so
only after such report has been made available to the
requesting Committee or Committees of Congress for no less
than 45 days.
Sec. 409. (a) None of the funds made available in this Act
may be used to maintain or establish a computer network
unless such network blocks the viewing, downloading, and
exchanging of pornography.
(b) Nothing in subsection (a) shall limit the use of funds
necessary for any Federal, State, tribal, or local law
enforcement agency or any other entity carrying out criminal
investigations, prosecution, or adjudication activities.
Sec. 410. (a) In General.--None of the funds appropriated
or otherwise made available to the Department of Defense in
this Act may be used to construct, renovate, or expand any
facility in the United States, its territories, or
possessions to house any individual detained at United States
Naval Station, Guantanamo Bay, Cuba, for the purposes of
detention or imprisonment in the custody or under the control
of the Department of Defense.
(b) The prohibition in subsection (a) shall not apply to
any modification of facilities at United States Naval
Station, Guantanamo Bay, Cuba.
(c) An individual described in this subsection is any
individual who, as of June 24, 2009, is located at United
States Naval Station, Guantanamo Bay, Cuba, and who--
(1) is not a citizen of the United States or a member of
the Armed Forces of the United States; and
(2) is--
(A) in the custody or under the effective control of the
Department of Defense; or
(B) otherwise under detention at United States Naval
Station, Guantanamo Bay, Cuba.
This Act may be cited as the ``Military Construction,
Veterans Affairs, and Related Agencies Appropriations Act,
2016''.
Motion Offered by Mr. Brady of Texas
Mr. BRADY of Texas. Mr. Speaker, I have a motion at the desk.
The SPEAKER pro tempore. The Clerk will designate the motion.
The text of the motion is as follows:
Mr. Brady of Texas moves that the House concur in the Senate
amendment to H.R. 2029 with the amendments specified in section 3 of
House Resolution 566.
The text of House amendment No. 2 to the Senate amendment to the text
is as follows:
At the end of House amendment #1, insert the following:
DIVISION Q--PROTECTING AMERICANS FROM TAX HIKES ACT OF 2015
SECTION 1. SHORT TITLE, ETC.
(a) Short Title.--This division may be cited as the
``Protecting Americans from Tax Hikes Act of 2015''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this division 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
division is as follows:
DIVISION Q--PROTECTING AMERICANS FROM TAX HIKES ACT OF 2015
Sec. 1. Short title, etc.
TITLE I--EXTENDERS
Subtitle A--Permanent Extensions
Part 1--Tax Relief for Families and Individuals
Sec. 101. Enhanced child tax credit made permanent.
Sec. 102. Enhanced American opportunity tax credit made permanent.
Sec. 103. Enhanced earned income tax credit made permanent.
Sec. 104. Extension and modification of deduction for certain expenses
of elementary and secondary school teachers.
Sec. 105. Extension of parity for exclusion from income for employer-
provided mass transit and parking benefits.
Sec. 106. Extension of deduction of State and local general sales
taxes.
Part 2--Incentives for Charitable Giving
Sec. 111. Extension and modification of special rule for contributions
of capital gain real property made for conservation
purposes.
Sec. 112. Extension of tax-free distributions from individual
retirement plans for charitable purposes.
Sec. 113. Extension and modification of charitable deduction for
contributions of food inventory.
Sec. 114. Extension of modification of tax treatment of certain
payments to controlling exempt organizations.
Sec. 115. Extension of basis adjustment to stock of S corporations
making charitable contributions of property.
Part 3--Incentives for Growth, Jobs, Investment, and Innovation
Sec. 121. Extension and modification of research credit.
Sec. 122. Extension and modification of employer wage credit for
employees who are active duty members of the uniformed
services.
Sec. 123. Extension of 15-year straight-line cost recovery for
qualified leasehold improvements, qualified restaurant
buildings and improvements, and qualified retail
improvements.
Sec. 124. Extension and modification of increased expensing limitations
and treatment of certain real property as section 179
property.
Sec. 125. Extension of treatment of certain dividends of regulated
investment companies.
Sec. 126. Extension of exclusion of 100 percent of gain on certain
small business stock.
Sec. 127. Extension of reduction in S-corporation recognition period
for built-in gains tax.
Sec. 128. Extension of subpart F exception for active financing income.
Part 4--Incentives for Real Estate Investment
Sec. 131. Extension of minimum low-income housing tax credit rate for
non-Federally subsidized buildings.
Sec. 132. Extension of military housing allowance exclusion for
determining whether a tenant in certain counties is low-
income.
Sec. 133. Extension of RIC qualified investment entity treatment under
FIRPTA.
Subtitle B--Extensions Through 2019
Sec. 141. Extension of new markets tax credit.
Sec. 142. Extension and modification of work opportunity tax credit.
Sec. 143. Extension and modification of bonus depreciation.
Sec. 144. Extension of look-thru treatment of payments between related
controlled foreign corporations under foreign personal
holding company rules.
[[Page H9400]]
Subtitle C--Extensions Through 2016
Part 1--Tax Relief for Families and Individuals
Sec. 151. Extension and modification of exclusion from gross income of
discharge of qualified principal residence indebtedness.
Sec. 152. Extension of mortgage insurance premiums treated as qualified
residence interest.
Sec. 153. Extension of above-the-line deduction for qualified tuition
and related expenses.
Part 2--Incentives for Growth, Jobs, Investment, and Innovation
Sec. 161. Extension of Indian employment tax credit.
Sec. 162. Extension and modification of railroad track maintenance
credit.
Sec. 163. Extension of mine rescue team training credit.
Sec. 164. Extension of qualified zone academy bonds.
Sec. 165. Extension of classification of certain race horses as 3-year
property.
Sec. 166. Extension of 7-year recovery period for motorsports
entertainment complexes.
Sec. 167. Extension and modification of accelerated depreciation for
business property on an Indian reservation.
Sec. 168. Extension of election to expense mine safety equipment.
Sec. 169. Extension of special expensing rules for certain film and
television productions; special expensing for live
theatrical productions.
Sec. 170. Extension of deduction allowable with respect to income
attributable to domestic production activities in Puerto
Rico.
Sec. 171. Extension and modification of empowerment zone tax
incentives.
Sec. 172. Extension of temporary increase in limit on cover over of rum
excise taxes to Puerto Rico and the Virgin Islands.
Sec. 173. Extension of American Samoa economic development credit.
Sec. 174. Moratorium on medical device excise tax.
Part 3--Incentives for Energy Production and Conservation
Sec. 181. Extension and modification of credit for nonbusiness energy
property.
Sec. 182. Extension of credit for alternative fuel vehicle refueling
property.
Sec. 183. Extension of credit for 2-wheeled plug-in electric vehicles.
Sec. 184. Extension of second generation biofuel producer credit.
Sec. 185. Extension of biodiesel and renewable diesel incentives.
Sec. 186. Extension and modification of production credit for Indian
coal facilities.
Sec. 187. Extension of credits with respect to facilities producing
energy from certain renewable resources.
Sec. 188. Extension of credit for energy-efficient new homes.
Sec. 189. Extension of special allowance for second generation biofuel
plant property.
Sec. 190. Extension of energy efficient commercial buildings deduction.
Sec. 191. Extension of special rule for sales or dispositions to
implement FERC or State electric restructuring policy for
qualified electric utilities.
Sec. 192. Extension of excise tax credits relating to alternative
fuels.
Sec. 193. Extension of credit for new qualified fuel cell motor
vehicles.
TITLE II--PROGRAM INTEGRITY
Sec. 201. Modification of filing dates of returns and statements
relating to employee wage information and nonemployee
compensation to improve compliance.
Sec. 202. Safe harbor for de minimis errors on information returns and
payee statements.
Sec. 203. Requirements for the issuance of ITINs.
Sec. 204. Prevention of retroactive claims of earned income credit
after issuance of social security number.
Sec. 205. Prevention of retroactive claims of child tax credit.
Sec. 206. Prevention of retroactive claims of American opportunity tax
credit.
Sec. 207. Procedures to reduce improper claims.
Sec. 208. Restrictions on taxpayers who improperly claimed credits in
prior year.
Sec. 209. Treatment of credits for purposes of certain penalties.
Sec. 210. Increase the penalty applicable to paid tax preparers who
engage in willful or reckless conduct.
Sec. 211. Employer identification number required for American
opportunity tax credit.
Sec. 212. Higher education information reporting only to include
qualified tuition and related expenses actually paid.
TITLE III--MISCELLANEOUS PROVISIONS
Subtitle A--Family Tax Relief
Sec. 301. Exclusion for amounts received under the Work Colleges
Program.
Sec. 302. Improvements to section 529 accounts.
Sec. 303. Elimination of residency requirement for qualified ABLE
programs.
Sec. 304. Exclusion for wrongfully incarcerated individuals.
Sec. 305. Clarification of special rule for certain governmental plans.
Sec. 306. Rollovers permitted from other retirement plans into simple
retirement accounts.
Sec. 307. Technical amendment relating to rollover of certain airline
payment amounts.
Sec. 308. Treatment of early retirement distributions for nuclear
materials couriers, United States Capitol Police, Supreme
Court Police, and diplomatic security special agents.
Sec. 309. Prevention of extension of tax collection period for members
of the Armed Forces who are hospitalized as a result of
combat zone injuries.
Subtitle B--Real Estate Investment Trusts
Sec. 311. Restriction on tax-free spinoffs involving REITs.
Sec. 312. Reduction in percentage limitation on assets of REIT which
may be taxable REIT subsidiaries.
Sec. 313. Prohibited transaction safe harbors.
Sec. 314. Repeal of preferential dividend rule for publicly offered
REITs.
Sec. 315. Authority for alternative remedies to address certain REIT
distribution failures.
Sec. 316. Limitations on designation of dividends by REITs.
Sec. 317. Debt instruments of publicly offered REITs and mortgages
treated as real estate assets.
Sec. 318. Asset and income test clarification regarding ancillary
personal property.
Sec. 319. Hedging provisions.
Sec. 320. Modification of REIT earnings and profits calculation to
avoid duplicate taxation.
Sec. 321. Treatment of certain services provided by taxable REIT
subsidiaries.
Sec. 322. Exception from FIRPTA for certain stock of REITs.
Sec. 323. Exception for interests held by foreign retirement or pension
funds.
Sec. 324. Increase in rate of withholding of tax on dispositions of
United States real property interests.
Sec. 325. Interests in RICs and REITs not excluded from definition of
United States real property interests.
Sec. 326. Dividends derived from RICs and REITs ineligible for
deduction for United States source portion of dividends
from certain foreign corporations.
Subtitle C--Additional Provisions
Sec. 331. Deductibility of charitable contributions to agricultural
research organizations.
Sec. 332. Removal of bond requirements and extending filing periods for
certain taxpayers with limited excise tax liability.
Sec. 333. Modifications to alternative tax for certain small insurance
companies.
Sec. 334. Treatment of timber gains.
Sec. 335. Modification of definition of hard cider.
Sec. 336. Church plan clarification.
Subtitle D--Revenue Provisions
Sec. 341. Updated ASHRAE standards for energy efficient commercial
buildings deduction.
Sec. 342. Excise tax credit equivalency for liquified petroleum gas and
liquified natural gas.
Sec. 343. Exclusion from gross income of certain clean coal power
grants to non-corporate taxpayers.
Sec. 344. Clarification of valuation rule for early termination of
certain charitable remainder unitrusts.
Sec. 345. Prevention of transfer of certain losses from tax indifferent
parties.
Sec. 346. Treatment of certain persons as employers with respect to
motion picture projects.
TITLE IV--TAX ADMINISTRATION
Subtitle A--Internal Revenue Service Reforms
Sec. 401. Duty to ensure that Internal Revenue Service employees are
familiar with and act in accord with certain taxpayer
rights.
Sec. 402. IRS employees prohibited from using personal email accounts
for official business.
Sec. 403. Release of information regarding the status of certain
investigations.
Sec. 404. Administrative appeal relating to adverse determinations of
tax-exempt status of certain organizations.
Sec. 405. Organizations required to notify Secretary of intent to
operate under 501(c)(4).
Sec. 406. Declaratory judgments for 501(c)(4) and other exempt
organizations.
[[Page H9401]]
Sec. 407. Termination of employment of Internal Revenue Service
employees for taking official actions for political
purposes.
Sec. 408. Gift tax not to apply to contributions to certain exempt
organizations.
Sec. 409. Extend Internal Revenue Service authority to require
truncated Social Security numbers on Form W-2.
Sec. 410. Clarification of enrolled agent credentials.
Sec. 411. Partnership audit rules.
Subtitle B--United States Tax Court
Part 1--Taxpayer Access to United States Tax Court
Sec. 421. Filing period for interest abatement cases.
Sec. 422. Small tax case election for interest abatement cases.
Sec. 423. Venue for appeal of spousal relief and collection cases.
Sec. 424. Suspension of running of period for filing petition of
spousal relief and collection cases.
Sec. 425. Application of Federal rules of evidence.
Part 2--United States Tax Court Administration
Sec. 431. Judicial conduct and disability procedures.
Sec. 432. Administration, judicial conference, and fees.
Part 3--Clarification Relating to United States Tax Court
Sec. 441. Clarification relating to United States Tax Court.
TITLE V--TRADE-RELATED PROVISIONS
Sec. 501. Modification of effective date of provisions relating to
tariff classification of recreational performance
outerwear.
Sec. 502. Agreement by Asia-Pacific Economic Cooperation members to
reduce rates of duty on certain environmental goods.
TITLE VI--BUDGETARY EFFECTS
Sec. 601. Budgetary effects.
TITLE I--EXTENDERS
Subtitle A--Permanent Extensions
PART 1--TAX RELIEF FOR FAMILIES AND INDIVIDUALS
SEC. 101. ENHANCED CHILD TAX CREDIT MADE PERMANENT.
(a) In General.--Section 24(d)(1)(B)(i) is amended by
striking ``$10,000'' and inserting ``$3,000''.
(b) Conforming Amendment.--Section 24(d) is amended by
striking paragraphs (3) and (4).
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 102. ENHANCED AMERICAN OPPORTUNITY TAX CREDIT MADE
PERMANENT.
(a) In General.--Section 25A(i) is amended by striking
``and before 2018''.
(b) Treatment of Possessions.--Section 1004(c)(1) of
division B of the American Recovery and Reinvestment Tax Act
of 2009 by striking ``and before 2018'' each place it
appears.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 103. ENHANCED EARNED INCOME TAX CREDIT MADE PERMANENT.
(a) Increase in Credit Percentage for 3 or More Qualifying
Children Made Permanent.--Section 32(b)(1) is amended to read
as follows:
``(1) Percentages.--The credit percentage and the phaseout
percentage shall be determined as follows:
------------------------------------------------------------------------
``In the case of an eligible The credit The phaseout
individual with: percentage is: percentage is:
------------------------------------------------------------------------
1 qualifying child................... 34 15.98
2 qualifying children................ 40 21.06
3 or more qualifying children........ 45 21.06
No qualifying children............... 7.65 7.65''.
------------------------------------------------------------------------
(b) Reduction of Marriage Penalty Made Permanent.--
(1) In general.--Section 32(b)(2)(B) is amended to read as
follows:
``(B) Joint returns.--
``(i) In general.--In the case of a joint return filed by
an eligible individual and such individual's spouse, the
phaseout amount determined under subparagraph (A) shall be
increased by $5,000.
``(ii) Inflation adjustment.--In the case of any taxable
year beginning after 2015, the $5,000 amount in clause (i)
shall be increased by an amount equal to--
``(I) such dollar amount, multiplied by
``(II) the cost of living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins determined by substituting `calendar year 2008'
for `calendar year 1992' in subparagraph (B) thereof.
``(iii) Rounding.--Subparagraph (A) of subsection (j)(2)
shall apply after taking into account any increase under
clause (ii).''.
(c) Conforming Amendment.--Section 32(b) is amended by
striking paragraph (3).
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2015.
SEC. 104. EXTENSION AND MODIFICATION OF DEDUCTION FOR CERTAIN
EXPENSES OF ELEMENTARY AND SECONDARY SCHOOL
TEACHERS.
(a) Deduction Made Permanent.--Section 62(a)(2)(D) is
amended by striking ``In the case of taxable years beginning
during 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010,
2011, 2012, 2013, or 2014, the deductions'' and inserting
``The deductions''.
(b) Inflation Adjustment.--Section 62(d) is amended by
adding at the end the following new paragraph:
``(3) Inflation adjustment.--In the case of any taxable
year beginning after 2015, the $250 amount in subsection
(a)(2)(D) shall be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) 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.
Any increase determined under the preceding sentence shall be
rounded to the nearest multiple of $50.''.
(c) Professional Development Expenses.--Section 62(a)(2)(D)
is amended--
(1) by striking ``educator in connection'' and all that
follows and inserting ``educator--'', and
(2) by inserting at the end the following:
``(i) by reason of the participation of the educator in
professional development courses related to the curriculum in
which the educator provides instruction or to the students
for which the educator provides instruction, and
``(ii) in connection with books, supplies (other than
nonathletic supplies for courses of instruction in health or
physical education), computer equipment (including related
software and services) and other equipment, and supplementary
materials used by the eligible educator in the classroom.''.
(d) Effective Dates.--
(1) Extension.--The amendment made by subsection (a) shall
apply to taxable years beginning after December 31, 2014.
(2) Modifications.--The amendments made by subsections (b)
and (c) shall apply to taxable years beginning after December
31, 2015.
SEC. 105. EXTENSION OF PARITY FOR EXCLUSION FROM INCOME FOR
EMPLOYER-PROVIDED MASS TRANSIT AND PARKING
BENEFITS.
(a) Mass Transit and Parking Parity.--Section 132(f)(2) is
amended--
(1) by striking ``$100'' in subparagraph (A) and inserting
``$175'', and
(2) by striking the last sentence.
(b) Effective Date.--The amendments made by this section
shall apply to months after December 31, 2014.
SEC. 106. EXTENSION OF DEDUCTION OF STATE AND LOCAL GENERAL
SALES TAXES.
(a) In General.--Section 164(b)(5) 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.
PART 2--INCENTIVES FOR CHARITABLE GIVING
SEC. 111. EXTENSION AND MODIFICATION OF SPECIAL RULE FOR
CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY
MADE FOR CONSERVATION PURPOSES.
(a) Made Permanent.--
(1) Individuals.--Section 170(b)(1)(E) is amended by
striking clause (vi).
(2) Corporations.--Section 170(b)(2)(B) 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) 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.--
[[Page H9402]]
``(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) is amended by striking
``subparagraph (B) applies'' and inserting ``subparagraph (B)
or (C) applies''.
(B) Section 170(b)(2)(B)(ii) 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 Dates.--
(1) Extension.--The amendments made by subsection (a) shall
apply to contributions made in taxable years beginning after
December 31, 2014.
(2) Modification.--The amendments made by subsection (b)
shall apply to contributions made in taxable years beginning
after December 31, 2015.
SEC. 112. EXTENSION OF TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL
RETIREMENT PLANS FOR CHARITABLE PURPOSES.
(a) In General.--Section 408(d)(8) 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. 113. EXTENSION AND MODIFICATION OF CHARITABLE DEDUCTION
FOR CONTRIBUTIONS OF FOOD INVENTORY.
(a) Permanent Extension.--Section 170(e)(3)(C) is amended
by striking clause (iv).
(b) Modifications.--Section 170(e)(3)(C), as amended by
subsection (a), is amended by striking clause (ii), by
redesignating clause (iii) as clause (vi), 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 which is allowable
after the application of 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).
``(iv) 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.
``(v) 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).''
(c) Effective Dates.--
(1) Extension.--The amendment made by subsection (a) shall
apply to contributions made after December 31, 2014.
(2) Modifications.--The amendments made by subsection (b)
shall apply to taxable years beginning after December 31,
2015.
SEC. 114. EXTENSION OF MODIFICATION OF TAX TREATMENT OF
CERTAIN PAYMENTS TO CONTROLLING EXEMPT
ORGANIZATIONS.
(a) In General.--Section 512(b)(13)(E) is amended by
striking clause (iv).
(b) Effective Date.--The amendment made by this section
shall apply to payments received or accrued after December
31, 2014.
SEC. 115. EXTENSION OF BASIS ADJUSTMENT TO STOCK OF S
CORPORATIONS MAKING CHARITABLE CONTRIBUTIONS OF
PROPERTY.
(a) In General.--Section 1367(a)(2) 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.
PART 3--INCENTIVES FOR GROWTH, JOBS, INVESTMENT, AND INNOVATION
SEC. 121. EXTENSION AND MODIFICATION OF RESEARCH CREDIT.
(a) Made Permanent.--
(1) In general.--Section 41 is amended by striking
subsection (h).
(2) Conforming amendment.--Section 45C(b)(1) is amended by
striking subparagraph (D).
(b) Credit Allowed Against Alternative Minimum Tax in Case
of Eligible Small Business.--Section 38(c)(4)(B) 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)),''.
(c) Treatment of Research Credit for Certain Startup
Companies.--
(1) In general.--Section 41, as amended by subsection (a),
is amended by adding at the end the following new subsection:
``(h) Treatment of Credit for Qualified Small Businesses.--
``(1) In general.--At the election of a qualified small
business for any taxable year, section 3111(f) shall apply to
the payroll tax credit portion of the credit otherwise
determined under subsection (a) for the taxable year and such
portion shall not be treated (other than for purposes of
section 280C) as a credit determined under subsection (a).
``(2) Payroll tax credit portion.--For purposes of this
subsection, the payroll tax credit portion of the credit
determined under subsection (a) with respect to any qualified
small business for any taxable year is the least of--
``(A) the amount specified in the election made under this
subsection,
``(B) the credit determined under subsection (a) for the
taxable year (determined before the application of this
subsection), or
``(C) in the case of a qualified small business other than
a partnership or S corporation, the amount of the business
credit carryforward under section 39 carried from the taxable
year (determined before the application of this subsection to
the taxable year).
``(3) Qualified small business.--For purposes of this
subsection--
``(A) In general.--The term `qualified small business'
means, with respect to any taxable year--
``(i) a corporation or partnership, if--
``(I) the gross receipts (as determined under the rules of
section 448(c)(3), without regard to subparagraph (A)
thereof) of such entity for the taxable year is less than
$5,000,000, and
``(II) such entity did not have gross receipts (as so
determined) for any taxable year preceding the 5-taxable-year
period ending with such taxable year, and
``(ii) any person (other than a corporation or partnership)
who meets the requirements of subclauses (I) and (II) of
clause (i), determined--
``(I) by substituting `person' for `entity' each place it
appears, and
``(II) by only taking into account the aggregate gross
receipts received by such person in carrying on all trades or
businesses of such person.
``(B) Limitation.--Such term shall not include an
organization which is exempt from taxation under section 501.
``(4) Election.--
``(A) In general.--Any election under this subsection for
any taxable year--
``(i) shall specify the amount of the credit to which such
election applies,
``(ii) shall be made on or before the due date (including
extensions) of--
``(I) in the case of a qualified small business which is a
partnership, the return required to be filed under section
6031,
``(II) in the case of a qualified small business which is
an S corporation, the return required to be filed under
section 6037, and
``(III) in the case of any other qualified small business,
the return of tax for the taxable year, and
``(iii) may be revoked only with the consent of the
Secretary.
``(B) Limitations.--
``(i) Amount.--The amount specified in any election made
under this subsection shall not exceed $250,000.
[[Page H9403]]
``(ii) Number of taxable years.--A person may not make an
election under this subsection if such person (or any other
person treated as a single taxpayer with such person under
paragraph (5)(A)) has made an election under this subsection
for 5 or more preceding taxable years.
``(C) Special rule for partnerships and s corporations.--In
the case of a qualified small business which is a partnership
or S corporation, the election made under this subsection
shall be made at the entity level.
``(5) Aggregation rules.--
``(A) In general.--Except as provided in subparagraph (B),
all persons or entities treated as a single taxpayer under
subsection (f)(1) shall be treated as a single taxpayer for
purposes of this subsection.
``(B) Special rules.--For purposes of this subsection and
section 3111(f)--
``(i) each of the persons treated as a single taxpayer
under subparagraph (A) may separately make the election under
paragraph (1) for any taxable year, and
``(ii) the $250,000 amount under paragraph (4)(B)(i) shall
be allocated among all persons treated as a single taxpayer
under subparagraph (A) in the same manner as under
subparagraph (A)(ii) or (B)(ii) of subsection (f)(1),
whichever is applicable.
``(6) Regulations.--The Secretary shall prescribe such
regulations as may be necessary to carry out the purposes of
this subsection, including--
``(A) regulations to prevent the avoidance of the purposes
of the limitations and aggregation rules under this
subsection through the use of successor companies or other
means,
``(B) regulations to minimize compliance and record-keeping
burdens under this subsection, and
``(C) regulations for recapturing the benefit of credits
determined under section 3111(f) in cases where there is a
subsequent adjustment to the payroll tax credit portion of
the credit determined under subsection (a), including
requiring amended income tax returns in the cases where there
is such an adjustment.''.
(2) Credit allowed against fica taxes.--Section 3111 is
amended by adding at the end the following new subsection:
``(f) Credit for Research Expenditures of Qualified Small
Businesses.--
``(1) In general.--In the case of a taxpayer who has made
an election under section 41(h) for a taxable year, there
shall be allowed as a credit against the tax imposed by
subsection (a) for the first calendar quarter which begins
after the date on which the taxpayer files the return
specified in section 41(h)(4)(A)(ii) an amount equal to the
payroll tax credit portion determined under section 41(h)(2).
``(2) Limitation.--The credit allowed by paragraph (1)
shall not exceed the tax imposed by subsection (a) for any
calendar quarter on the wages paid with respect to the
employment of all individuals in the employ of the employer.
``(3) Carryover of unused credit.--If the amount of the
credit under paragraph (1) exceeds the limitation of
paragraph (2) for any calendar quarter, such excess shall be
carried to the succeeding calendar quarter and allowed as a
credit under paragraph (1) for such quarter.
``(4) Deduction allowed for credited amounts.--The credit
allowed under paragraph (1) shall not be taken into account
for purposes of determining the amount of any deduction
allowed under chapter 1 for taxes imposed under subsection
(a).''.
(d) Effective Dates.--
(1) Extension.--The amendments made by subsection (a) shall
apply to shall apply to amounts paid or incurred after
December 31, 2014.
(2) Credit allowed against alternative minimum tax in case
of eligible small business.--The amendments made by
subsection (b) shall apply to credits determined for taxable
years beginning after December 31, 2015.
(3) Treatment of research credit for certain startup
companies.--The amendments made by subsection (c) shall apply
to taxable years beginning after December 31, 2015.
SEC. 122. EXTENSION AND MODIFICATION OF EMPLOYER WAGE CREDIT
FOR EMPLOYEES WHO ARE ACTIVE DUTY MEMBERS OF
THE UNIFORMED SERVICES.
(a) In General.--Section 45P is amended by striking
subsection (f).
(b) Applicability to All Employers.--
(1) In general.--Section 45P(a) is amended by striking ``,
in the case of an eligible small business employer''.
(2) Conforming amendment.--Section 45P(b)(3) is amended to
read as follows:
``(3) Controlled groups.--All persons treated as a single
employer under subsection (b), (c), (m), or (o) of section
414 shall be treated as a single employer.''.
(c) Effective Date.--
(1) Extension.--The amendment made by subsection (a) shall
apply to payments made after December 31, 2014.
(2) Modification.--The amendments made by subsection (b)
shall apply to taxable years beginning after December 31,
2015.
SEC. 123. EXTENSION OF 15-YEAR STRAIGHT-LINE COST RECOVERY
FOR QUALIFIED LEASEHOLD IMPROVEMENTS, QUALIFIED
RESTAURANT BUILDINGS AND IMPROVEMENTS, AND
QUALIFIED RETAIL IMPROVEMENTS.
(a) Qualified Leasehold Improvement Property and Qualified
Restaurant Property.--Clauses (iv) and (v) of section
168(e)(3)(E) are each amended by striking ``placed in service
before January 1, 2015''.
(b) Qualified Retail Improvement Property.--Section
168(e)(3)(E)(ix) is amended by striking ``placed in service
after December 31, 2008, and before January 1, 2015''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2014.
SEC. 124. EXTENSION AND MODIFICATION OF INCREASED EXPENSING
LIMITATIONS AND TREATMENT OF CERTAIN REAL
PROPERTY AS SECTION 179 PROPERTY.
(a) Made Permanent.--
(1) Dollar limitation.--Section 179(b)(1) 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) is amended
by striking ``exceeds--'' and all that follows and inserting
``exceeds $2,000,000.''.
(b) Computer Software.--Section 179(d)(1)(A)(ii) 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) Special Rules for Treatment of Qualified Real
Property.--
(1) Extension for 2015.--Section 179(f) is amended--
(A) by striking ``2015'' in paragraph (1) and inserting
``2016'',
(B) by striking ``2014'' each place it appears in paragraph
(4) and inserting ``2015'', and
(C) by striking ``and 2013'' in the heading of paragraph
(4)(C) and inserting ``2013, and 2014''.
(2) Made permanent.--Section 179(f), as amended by
paragraph (1), is amended--
(A) by striking ``beginning after 2009 and before 2016'' in
paragraph (1), and
(B) by striking paragraphs (3) and (4).
(d) Election.--Section 179(c)(2) 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.
(e) Air Conditioning and Heating Units.--Section 179(d)(1)
is amended by striking ``and shall not include air
conditioning or heating units''.
(f) Inflation Adjustment.--Section 179(b) 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 Dates.--
(1) Extension.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after December 31, 2014.
(2) Modifications.--The amendments made by subsections
(c)(2) and (e) shall apply to taxable years beginning after
December 31, 2015.
SEC. 125. EXTENSION OF TREATMENT OF CERTAIN DIVIDENDS OF
REGULATED INVESTMENT COMPANIES.
(a) In General.--Section 871(k) is amended by striking
clause (v) of paragraph (1)(C) and clause (v) of paragraph
(2)(C).
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2014.
SEC. 126. EXTENSION OF EXCLUSION OF 100 PERCENT OF GAIN ON
CERTAIN SMALL BUSINESS STOCK.
(a) In General.--Section 1202(a)(4) is amended--
(1) by striking ``and before January 1, 2015'', and
(2) by striking ``, 2011, 2012, 2013, and 2014'' in the
heading thereof and inserting ``and thereafter''.
(b) Effective Date.--The amendments made by this section
shall apply to stock acquired after December 31, 2014.
SEC. 127. EXTENSION OF REDUCTION IN S-CORPORATION RECOGNITION
PERIOD FOR BUILT-IN GAINS TAX.
(a) In General.--Section 1374(d)(7) is amended to read as
follows:
``(7) Recognition period.--
``(A) In general.--The term `recognition period' means the
5-year period beginning with the 1st day of the 1st 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 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 amendments made by this section
shall apply to taxable years beginning after December 31,
2014.
[[Page H9404]]
SEC. 128. EXTENSION OF SUBPART F EXCEPTION FOR ACTIVE
FINANCING INCOME.
(a) Insurance Businesses.--Section 953(e) is amended by
striking paragraph (10) and by redesignating paragraph (11)
as paragraph (10).
(b) Banking, Financing, or Similar Businesses.--Section
954(h) is amended by striking paragraph (9).
(c) Effective Date.--The amendments made by this section
shall apply to taxable years of foreign corporations
beginning after December 31, 2014, and to taxable years of
United States shareholders with or within which any such
taxable year of such foreign corporation ends.
PART 4--INCENTIVES FOR REAL ESTATE INVESTMENT
SEC. 131. EXTENSION OF MINIMUM LOW-INCOME HOUSING TAX CREDIT
RATE FOR NON-FEDERALLY SUBSIDIZED BUILDINGS.
(a) In General.--Section 42(b)(2) is amended by striking
``with respect to housing credit dollar amount allocations
made before January 1, 2015''.
(b) Clerical Amendment.--The heading for section 42(b)(2)
is amended by striking ``Temporary minimum'' and inserting
``Minimum''.
(c) Effective Dates.--The amendments made by this section
shall take effect on January 1, 2015.
SEC. 132. EXTENSION OF MILITARY HOUSING ALLOWANCE EXCLUSION
FOR DETERMINING WHETHER A TENANT IN CERTAIN
COUNTIES IS LOW-INCOME.
(a) In General.--Section 3005(b) of the Housing Assistance
Tax Act of 2008 is amended by striking ``and before January
1, 2015'' each place it appears.
(b) Effective Date.--The amendments made by this section
shall take effect as if included in the enactment of section
3005 of the Housing Assistance Tax Act of 2008.
SEC. 133. EXTENSION OF RIC QUALIFIED INVESTMENT ENTITY
TREATMENT UNDER FIRPTA.
(a) In General.--Section 897(h)(4)(A) is amended--
(1) by striking clause (ii), and
(2) by striking all that precedes ``regulated investment
company which'' and inserting the following:
``(A) Qualified investment entity.--The term `qualified
investment entity' means--
``(i) any real estate investment trust, and
``(ii) any''.
(b) Effective Date.--
(1) In general.--The amendments made by this section shall
take effect on January 1, 2015. Notwithstanding the preceding
sentence, such amendments shall not apply with respect to the
withholding requirement under section 1445 of the Internal
Revenue Code of 1986 for any payment made before the date of
the enactment of this Act.
(2) Amounts withheld on or before date of enactment.--In
the case of a regulated investment company--
(A) which makes a distribution after December 31, 2014, and
before the date of the enactment of this Act, and
(B) which would (but for the second sentence of paragraph
(1)) have been required to withhold with respect to such
distribution under section 1445 of such Code,
such investment company shall not be liable to any person to
whom such distribution was made for any amount so withheld
and paid over to the Secretary of the Treasury.
Subtitle B--Extensions Through 2019
SEC. 141. EXTENSION OF NEW MARKETS TAX CREDIT.
(a) In General.--Section 45D(f)(1)(G) is amended by
striking ``for 2010, 2011, 2012, 2013, and 2014'' and
inserting ``for each of calendar years 2010 through 2019''.
(b) Carryover of Unused Limitation.--Section 45D(f)(3) is
amended by striking ``2019'' and inserting ``2024''.
(c) Effective Date.--The amendments made by this section
shall apply to calendar years beginning after December 31,
2014.
SEC. 142. EXTENSION AND MODIFICATION OF WORK OPPORTUNITY TAX
CREDIT.
(a) In General.--Section 51(c)(4) is amended by striking
``December 31, 2014'' and inserting ``December 31, 2019''.
(b) Credit for Hiring Long-term Unemployment Recipients.--
(1) In general.--Section 51(d)(1) is amended by striking
``or'' at the end of subparagraph (H), by striking the period
at the end of subparagraph (I) and inserting ``, or'', and by
adding at the end the following new subparagraph:
``(J) a qualified long-term unemployment recipient.''.
(2) Qualified long-term unemployment recipient.--Section
51(d) is amended by adding at the end the following new
paragraph:
``(15) Qualified long-term unemployment recipient.--The
term `qualified long-term unemployment recipient' means any
individual who is certified by the designated local agency as
being in a period of unemployment which--
``(A) is not less than 27 consecutive weeks, and
``(B) includes a period in which the individual was
receiving unemployment compensation under State or Federal
law.''.
(c) Effective Dates.--
(1) Extension.--The amendment made by subsection (a) shall
apply to individuals who begin work for the employer after
December 31, 2014.
(2) Modification.--The amendments made by subsection (b)
shall apply to individuals who begin work for the employer
after December 31, 2015.
SEC. 143. EXTENSION AND MODIFICATION OF BONUS DEPRECIATION.
(a) Extended for 2015.--
(1) In general.--Section 168(k)(2) is amended--
(A) by striking ``January 1, 2016'' in subparagraph (A)(iv)
and inserting ``January 1, 2017'', and
(B) by striking ``January 1, 2015'' each place it appears
and inserting ``January 1, 2016''.
(2) Special rule for federal long-term contracts.--Section
460(c)(6)(B)(ii) is amended by striking ``January 1, 2015
(January 1, 2016'' and inserting ``January 1, 2016 (January
1, 2017''.
(3) Extension of election to accelerate amt credit in lieu
of bonus depreciation.--
(A) In general.--Section 168(k)(4)(D)(iii)(II) is amended
by striking ``January 1, 2015'' and inserting ``January 1,
2016''.
(B) Round 5 extension property.--Section 168(k)(4) is
amended by adding at the end the following new subparagraph:
``(L) Special rules for round 5 extension property.--
``(i) In general.--In the case of round 5 extension
property, in applying this paragraph to any taxpayer--
``(I) the limitation described in subparagraph (B)(i) and
the business credit increase amount under subparagraph
(E)(iii) thereof shall not apply, and
``(II) the bonus depreciation amount, maximum amount, and
maximum increase amount shall be computed separately from
amounts computed with respect to eligible qualified property
which is not round 5 extension property.
``(ii) Election.--
``(I) A taxpayer who has an election in effect under this
paragraph for round 4 extension property shall be treated as
having an election in effect for round 5 extension property
unless the taxpayer elects to not have this paragraph apply
to round 5 extension property.
``(II) A taxpayer who does not have an election in effect
under this paragraph for round 4 extension property may elect
to have this paragraph apply to round 5 extension property.
``(iii) Round 5 extension property.--For purposes of this
subparagraph, the term `round 5 extension property' means
property which is eligible qualified property solely by
reason of the extension of the application of the special
allowance under paragraph (1) pursuant to the amendments made
by section 143(a)(1) of the Protecting Americans from Tax
Hikes Act of 2015 (and the application of such extension to
this paragraph pursuant to the amendment made by section
143(a)(3) of such Act).''.
(4) Conforming amendments.--
(A) The heading for section 168(k) is amended by striking
``January 1, 2015'' and inserting ``January 1, 2016''.
(B) The heading for section 168(k)(2)(B)(ii) is amended by
striking ``pre-january 1, 2015'' and inserting ``pre-january
1, 2016''.
(5) Effective date.--
(A) In general.--Except as provided in subparagraph (B),
the amendments made by this subsection shall apply to
property placed in service after December 31, 2014, in
taxable years ending after such date.
(B) Election to accelerate amt credit.--The amendments made
by paragraph (3) shall apply to taxable years ending after
December 31, 2014.
(b) Extended and Modified for 2016 Through 2019.--
(1) In general.--Section 168(k)(2), as amended by
subsection (a), is amended to read as follows:
``(2) Qualified property.--For purposes of this
subsection--
``(A) In general.--The term `qualified property' means
property--
``(i)(I) to which this section applies which has a recovery
period of 20 years or less,
``(II) which is computer software (as defined in section
167(f)(1)(B)) for which a deduction is allowable under
section 167(a) without regard to this subsection,
``(III) which is water utility property, or
``(IV) which is qualified improvement property,
``(ii) the original use of which commences with the
taxpayer, and
``(iii) which is placed in service by the taxpayer before
January 1, 2020.
``(B) Certain property having longer production periods
treated as qualified property.--
``(i) In general.--The term `qualified property' includes
any property if such property--
``(I) meets the requirements of clauses (i) and (ii) of
subparagraph (A),
``(II) is placed in service by the taxpayer before January
1, 2021,
``(III) is acquired by the taxpayer (or acquired pursuant
to a written contract entered into) before January 1, 2020,
``(IV) has a recovery period of at least 10 years or is
transportation property,
``(V) is subject to section 263A, and
``(VI) meets the requirements of clause (iii) of section
263A(f)(1)(B) (determined as if such clause also applies to
property which has a long useful life (within the meaning of
section 263A(f))).
``(ii) Only pre-january 1, 2020 basis eligible for
additional allowance.--In the case of property which is
qualified property solely by reason of clause (i), paragraph
(1) shall apply only to the extent of the adjusted basis
[[Page H9405]]
thereof attributable to manufacture, construction, or
production before January 1, 2020.
``(iii) Transportation property.--For purposes of this
subparagraph, the term `transportation property' means
tangible personal property used in the trade or business of
transporting persons or property.
``(iv) Application of subparagraph.--This subparagraph
shall not apply to any property which is described in
subparagraph (C).
``(C) Certain aircraft.--The term `qualified property'
includes property--
``(i) which meets the requirements of subparagraph (A)(ii)
and subclauses (II) and (III) of subparagraph (B)(i),
``(ii) which is an aircraft which is not a transportation
property (as defined in subparagraph (B)(iii)) other than for
agricultural or firefighting purposes,
``(iii) which is purchased and on which such purchaser, at
the time of the contract for purchase, has made a
nonrefundable deposit of the lesser of--
``(I) 10 percent of the cost, or
``(II) $100,000, and
``(iv) which has--
``(I) an estimated production period exceeding 4 months,
and
``(II) a cost exceeding $200,000.
``(D) Exception for alternative depreciation property.--The
term `qualified property' shall not include any property to
which the alternative depreciation system under subsection
(g) applies, determined--
``(i) without regard to paragraph (7) of subsection (g)
(relating to election to have system apply), and
``(ii) after application of section 280F(b) (relating to
listed property with limited business use).
``(E) Special rules.--
``(i) Self-constructed property.--In the case of a taxpayer
manufacturing, constructing, or producing property for the
taxpayer's own use, the requirements of subclause (III) of
subparagraph (B)(i) shall be treated as met if the taxpayer
begins manufacturing, constructing, or producing the property
before January 1, 2020.
``(ii) Sale-leasebacks.--For purposes of clause (iii) and
subparagraph (A)(ii), if property is--
``(I) originally placed in service by a person, and
``(II) sold and leased back by such person within 3 months
after the date such property was originally placed in
service,
such property shall be treated as originally placed in
service not earlier than the date on which such property is
used under the leaseback referred to in subclause (II).
``(iii) Syndication.--For purposes of subparagraph (A)(ii),
if--
``(I) property is originally placed in service by the
lessor of such property,
``(II) such property is sold by such lessor or any
subsequent purchaser within 3 months after the date such
property was originally placed in service (or, in the case of
multiple units of property subject to the same lease, within
3 months after the date the final unit is placed in service,
so long as the period between the time the first unit is
placed in service and the time the last unit is placed in
service does not exceed 12 months), and
``(III) the user of such property after the last sale
during such 3-month period remains the same as when such
property was originally placed in service,
such property shall be treated as originally placed in
service not earlier than the date of such last sale.
``(F) Coordination with section 280f.--For purposes of
section 280F--
``(i) Automobiles.--In the case of a passenger automobile
(as defined in section 280F(d)(5)) which is qualified
property, the Secretary shall increase the limitation under
section 280F(a)(1)(A)(i) by $8,000.
``(ii) Listed property.--The deduction allowable under
paragraph (1) shall be taken into account in computing any
recapture amount under section 280F(b)(2).
``(iii) Phase down.--In the case of a passenger automobile
placed in service by the taxpayer after December 31, 2017,
clause (i) shall be applied by substituting for `$8,000'--
``(I) in the case of an automobile placed in service during
2018, $6,400, and
``(II) in the case of an automobile placed in service
during 2019, $4,800.
``(G) Deduction allowed in computing minimum tax.--For
purposes of determining alternative minimum taxable income
under section 55, the deduction under section 167 for
qualified property shall be determined without regard to any
adjustment under section 56.''.
(2) Qualified improvement property.--Section 168(k)(3) is
amended to read as follows:
``(3) Qualified improvement property.--For purposes of this
subsection--
``(A) In general.--The term `qualified improvement
property' means any improvement to an interior portion of a
building which is nonresidential real property if such
improvement is placed in service after the date such building
was first placed in service.
``(B) Certain improvements not included.--Such term shall
not include any improvement for which the expenditure is
attributable to--
``(i) the enlargement of the building,
``(ii) any elevator or escalator, or
``(iii) the internal structural framework of the
building.''.
(3) Expansion of election to accelerate amt credits in lieu
of bonus depreciation.--Section 168(k)(4), as amended by
subsection (a), is amended to read as follows:
``(4) Election to accelerate amt credits in lieu of bonus
depreciation.--
``(A) In general.--If a corporation elects to have this
paragraph apply for any taxable year--
``(i) paragraphs (1) and (2)(F) shall not apply to any
qualified property placed in service during such taxable
year,
``(ii) the applicable depreciation method used under this
section with respect to such property shall be the straight
line method, and
``(iii) the limitation imposed by section 53(c) for such
taxable year shall be increased by the bonus depreciation
amount which is determined for such taxable year under
subparagraph (B).
``(B) Bonus depreciation amount.--For purposes of this
paragraph--
``(i) In general.--The bonus depreciation amount for any
taxable year is an amount equal to 20 percent of the excess
(if any) of--
``(I) the aggregate amount of depreciation which would be
allowed under this section for qualified property placed in
service by the taxpayer during such taxable year if paragraph
(1) applied to all such property (and, in the case of any
such property which is a passenger automobile (as defined in
section 280F(d)(5)), if paragraph (2)(F) applied to such
automobile), over
``(II) the aggregate amount of depreciation which would be
allowed under this section for qualified property placed in
service by the taxpayer during such taxable year if
paragraphs (1) and (2)(F) did not apply to any such property.
The aggregate amounts determined under subclauses (I) and
(II) shall be determined without regard to any election made
under subparagraph (A) or subsection (b)(2)(D), (b)(3)(D), or
(g)(7).
``(ii) Limitation.--The bonus depreciation amount for any
taxable year shall not exceed the lesser of--
``(I) 50 percent of the minimum tax credit under section
53(b) for the first taxable year ending after December 31,
2015, or
``(II) the minimum tax credit under section 53(b) for such
taxable year determined by taking into account only the
adjusted net minimum tax for taxable years ending before
January 1, 2016 (determined by treating credits as allowed on
a first-in, first-out basis).
``(iii) Aggregation rule.--All corporations which are
treated as a single employer under section 52(a) shall be
treated--
``(I) as 1 taxpayer for purposes of this paragraph, and
``(II) as having elected the application of this paragraph
if any such corporation so elects.
``(C) Credit refundable.--For purposes of section 6401(b),
the aggregate increase in the credits allowable under part IV
of subchapter A for any taxable year resulting from the
application of this paragraph shall be treated as allowed
under subpart C of such part (and not any other subpart).
``(D) Other rules.--
``(i) Election.--Any election under this paragraph may be
revoked only with the consent of the Secretary.
``(ii) Partnerships with electing partners.--In the case of
a corporation which is a partner in a partnership and which
makes an election under subparagraph (A) for the taxable
year, for purposes of determining such corporation's
distributive share of partnership items under section 702 for
such taxable year--
``(I) paragraphs (1) and (2)(F) shall not apply to any
qualified property placed in service during such taxable
year, and
``(II) the applicable depreciation method used under this
section with respect to such property shall be the straight
line method.
``(iii) Certain partnerships.--In the case of a partnership
in which more than 50 percent of the capital and profits
interests are owned (directly or indirectly) at all times
during the taxable year by 1 corporation (or by corporations
treated as 1 taxpayer under subparagraph (B)(iii)), each
partner shall compute its bonus depreciation amount under
clause (i) of subparagraph (B) by taking into account its
distributive share of the amounts determined by the
partnership under subclauses (I) and (II) of such clause for
the taxable year of the partnership ending with or within the
taxable year of the partner.''.
(4) Special rules for certain plants bearing fruits and
nuts.--Section 168(k) is amended--
(A) by striking paragraph (5), and
(B) by inserting after paragraph (4) the following new
paragraph:
``(5) Special rules for certain plants bearing fruits and
nuts.--
``(A) In general.--In the case of any specified plant which
is planted before January 1, 2020, or is grafted before such
date to a plant that has already been planted, by the
taxpayer in the ordinary course of the taxpayer's farming
business (as defined in section 263A(e)(4)) during a taxable
year for which the taxpayer has elected the application of
this paragraph--
``(i) a depreciation deduction equal to 50 percent of the
adjusted basis of such specified plant shall be allowed under
section 167(a) for the taxable year in which such specified
plant is so planted or grafted, and
``(ii) the adjusted basis of such specified plant shall be
reduced by the amount of such deduction.
``(B) Specified plant.--For purposes of this paragraph, the
term `specified plant' means--
[[Page H9406]]
``(i) any tree or vine which bears fruits or nuts, and
``(ii) any other plant which will have more than one yield
of fruits or nuts and which generally has a pre-productive
period of more than 2 years from the time of planting or
grafting to the time at which such plant begins bearing
fruits or nuts.
Such term shall not include any property which is planted or
grafted outside of the United States.
``(C) Election revocable only with consent.--An election
under this paragraph may be revoked only with the consent of
the Secretary.
``(D) Additional depreciation may be claimed only once.--If
this paragraph applies to any specified plant, such specified
plant shall not be treated as qualified property in the
taxable year in which placed in service.
``(E) Deduction allowed in computing minimum tax.--Rules
similar to the rules of paragraph (2)(G) shall apply for
purposes of this paragraph.
``(F) Phase down.--In the case of a specified plant which
is planted after December 31, 2017 (or is grafted to a plant
that has already been planted before such date), subparagraph
(A)(i) shall be applied by substituting for `50 percent'--
``(i) in the case of a plant which is planted (or so
grafted) in 2018, `40 percent', and
``(ii) in the case of a plant which is planted (or so
grafted) during 2019, `30 percent'.''.
(5) Phase down of bonus depreciation.--Section 168(k) is
amended by adding at the end the following new paragraph:
``(6) Phase down.--In the case of qualified property placed
in service by the taxpayer after December 31, 2017, paragraph
(1)(A) shall be applied by substituting for `50 percent'--
``(A) in the case of property placed in service in 2018 (or
in the case of property placed in service in 2019 and
described in paragraph (2)(B) or (C) (determined by
substituting `2019' for `2020' in paragraphs (2)(B)(i)(III)
and (ii) and paragraph (2)(E)(i)), `40 percent',
``(B) in the case of property placed in service in 2019 (or
in the case of property placed in service in 2020 and
described in paragraph (2)(B) or (C), `30 percent'.''.
(6) Conforming amendments.--
(A) Section 168(e)(6) is amended--
(i) by redesignating subparagraphs (A) and (B) as
subparagraphs (D) and (E), respectively,
(ii) by striking all that precedes subparagraph (D) (as so
redesignated) and inserting the following:
``(6) Qualified leasehold improvement property.--For
purposes of this subsection--
``(A) In general.--The term `qualified leasehold
improvement property' means any improvement to an interior
portion of a building which is nonresidential real property
if--
``(i) such improvement is made under or pursuant to a lease
(as defined in subsection (h)(7))--
``(I) by the lessee (or any sublessee) of such portion, or
``(II) by the lessor of such portion,
``(ii) such portion is to be occupied exclusively by the
lessee (or any sublessee) of such portion, and
``(iii) such improvement is placed in service more than 3
years after the date the building was first placed in
service.
``(B) Certain improvements not included.--Such term shall
not include any improvement for which the expenditure is
attributable to--
``(i) the enlargement of the building,
``(ii) any elevator or escalator,
``(iii) any structural component benefitting a common area,
or
``(iv) the internal structural framework of the building.
``(C) Definitions and special rules.--For purposes of this
paragraph--
``(i) Commitment to lease treated as lease.--A commitment
to enter into a lease shall be treated as a lease, and the
parties to such commitment shall be treated as lessor and
lessee, respectively.
``(ii) Related persons.--A lease between related persons
shall not be considered a lease. For purposes of the
preceding sentence, the term `related persons' means--
``(I) members of an affiliated group (as defined in section
1504), and
``(II) persons having a relationship described in
subsection (b) of section 267; except that, for purposes of
this clause, the phrase `80 percent or more' shall be
substituted for the phrase `more than 50 percent' each place
it appears in such subsection.'', and
(iii) by striking ``subparagraph (A)'' in subparagraph (E)
(as so redesignated) and inserting ``subparagraph (D)''.
(B) Section 168(e)(7)(B) is amended by striking ``qualified
leasehold improvement property'' and inserting ``qualified
improvement property''.
(C) Section 168(e)(8) is amended by striking subparagraph
(D).
(D) Section 168(k), as amended by the preceding provisions
of this section, is amended by adding at the end the
following new paragraph:
``(7) Election out.--If a taxpayer makes an election under
this paragraph with respect to any class of property for any
taxable year, paragraphs (1) and (2)(F) shall not apply to
any qualified property in such class placed in service during
such taxable year. An election under this paragraph may be
revoked only with the consent of the Secretary.''.
(E) Section 168(l)(3) is amended--
(i) by striking ``section 168(k)'' in subparagraph (A) and
inserting ``subsection (k)'', and
(ii) by striking ``section 168(k)(2)(D)(i)'' in
subparagraph (B) and inserting ``subsection (k)(2)(D)''.
(F) Section 168(l)(4) is amended by striking ``subparagraph
(E) of section 168(k)(2)'' and all that follows and inserting
``subsection (k)(2)(E) shall apply.''.
(G) Section 168(l)(5) is amended by striking ``section
168(k)(2)(G)'' and inserting ``subsection (k)(2)(G)''.
(H) Section 263A(c) is amended by adding at the end the
following new paragraph:
``(7) Coordination with section 168(k)(5).--This section
shall not apply to any amount allowed as a deduction by
reason of section 168(k)(5) (relating to special rules for
certain plants bearing fruits and nuts).''.
(I) Section 460(c)(6)(B)(ii), as amended by subsection (a),
is amended to read as follows:
``(ii) is placed in service before January 1, 2020 (January
1, 2021 in the case of property described in section
168(k)(2)(B)).''.
(J) Section 168(k), as amended by subsection (a), is
amended by striking ``and Before January 1, 2016'' in the
heading thereof and inserting ``and Before January 1, 2020''.
(7) Effective dates.--
(A) In general.--Except as otherwise provided in this
paragraph, the amendments made by this subsection shall apply
to property placed in service after December 31, 2015, in
taxable years ending after such date.
(B) Expansion of election to accelerate amt credits in lieu
of bonus depreciation.--The amendments made by paragraph (3)
shall apply to taxable years ending after December 31, 2015,
except that in the case of any taxable year beginning before
January 1, 2016, and ending after December 31, 2015, the
limitation under section 168(k)(4)(B)(ii) of the Internal
Revenue Code of 1986 (as amended by this section) shall be
the sum of--
(i) the product of--
(I) the maximum increase amount (within the meaning of
section 168(k)(4)(C)(iii) of such Code, as in effect before
the amendments made by this subsection), multiplied by
(II) a fraction the numerator of which is the number of
days in the taxable year before January 1, 2016, and the
denominator of which is the number of days in the taxable
year, plus
(ii) the product of--
(I) such limitation (determined without regard to this
subparagraph), multiplied by
(II) a fraction the numerator of which is the number of
days in the taxable year after December 31, 2015, and the
denominator of which is the number of days in the taxable
year.
(C) Special rules for certain plants bearing fruits and
nuts.--The amendments made by paragraph (4) (other than
subparagraph (A) thereof) shall apply to specified plants (as
defined in section 168(k)(5)(B) of the Internal Revenue Code
of 1986, as amended by this subsection) planted or grafted
after December 31, 2015.
SEC. 144. EXTENSION OF LOOK-THRU TREATMENT OF PAYMENTS
BETWEEN RELATED CONTROLLED FOREIGN CORPORATIONS
UNDER FOREIGN PERSONAL HOLDING COMPANY RULES.
(a) In General.--Section 954(c)(6)(C) is amended by
striking ``January 1, 2015'' and inserting ``January 1,
2020''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years of foreign corporations
beginning after December 31, 2014, and to taxable years of
United States shareholders with or within which such taxable
years of foreign corporations end.
Subtitle C--Extensions Through 2016
PART 1--TAX RELIEF FOR FAMILIES AND INDIVIDUALS
SEC. 151. EXTENSION AND MODIFICATION OF EXCLUSION FROM GROSS
INCOME OF DISCHARGE OF QUALIFIED PRINCIPAL
RESIDENCE INDEBTEDNESS.
(a) Extension.--Section 108(a)(1)(E) is amended by striking
``January 1, 2015'' and inserting ``January 1, 2017''.
(b) Modification.--Section 108(a)(1)(E), as amended by
subsection (a), is amended by striking ``discharged before''
and all that follows and inserting ``discharged--
``(i) before January 1, 2017, or
``(ii) subject to an arrangement that is entered into and
evidenced in writing before January 1, 2017.''.
(c) Effective Dates.--
(1) Extension.--The amendment made by subsection (a) shall
apply to discharges of indebtedness after December 31, 2014.
(2) Modification.--The amendment made by subsection (b)
shall apply to discharges of indebtedness after December 31,
2015.
SEC. 152. EXTENSION OF MORTGAGE INSURANCE PREMIUMS TREATED AS
QUALIFIED RESIDENCE INTEREST.
(a) In General.--Subclause (I) of section 163(h)(3)(E)(iv)
is amended by striking ``December 31, 2014'' and inserting
``December 31, 2016''.
(b) Effective Date.--The amendment made by this section
shall apply to amounts paid or accrued after December 31,
2014.
SEC. 153. EXTENSION OF ABOVE-THE-LINE DEDUCTION FOR QUALIFIED
TUITION AND RELATED EXPENSES.
(a) In General.--Section 222(e) is amended by striking
``December 31, 2014'' and inserting ``December 31, 2016''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2014.
[[Page H9407]]
PART 2--INCENTIVES FOR GROWTH, JOBS, INVESTMENT, AND INNOVATION
SEC. 161. EXTENSION OF INDIAN EMPLOYMENT TAX CREDIT.
(a) In General.--Section 45A(f) is amended by striking
``December 31, 2014'' and inserting ``December 31, 2016''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2014.
SEC. 162. EXTENSION AND MODIFICATION OF RAILROAD TRACK
MAINTENANCE CREDIT.
(a) Extension.--Section 45G(f) is amended by striking
``January 1, 2015'' and inserting ``January 1, 2017''.
(b) Modification.--Section 45G(d) is amended by striking
``January 1, 2005,'' and inserting ``January 1, 2015,''.
(c) Effective Dates.--
(1) Extension.--The amendment made by subsection (a) shall
apply to expenditures paid or incurred in taxable years
beginning after December 31, 2014.
(2) Modification.--The amendment made by subsection (b)
shall apply to expenditures paid or incurred in taxable years
beginning after December 31, 2015.
SEC. 163. EXTENSION OF MINE RESCUE TEAM TRAINING CREDIT.
(a) In General.--Section 45N(e) is amended by striking
``December 31, 2014'' and inserting ``December 31, 2016''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2014.
SEC. 164. EXTENSION OF QUALIFIED ZONE ACADEMY BONDS.
(a) Extension.--Section 54E(c)(1) is amended by striking
``and 2014'' and inserting ``2014, 2015, and 2016''.
(b) Effective Date.--The amendment made by this section
shall apply to obligations issued after December 31, 2014.
SEC. 165. EXTENSION OF CLASSIFICATION OF CERTAIN RACE HORSES
AS 3-YEAR PROPERTY.
(a) In General.--Section 168(e)(3)(A)(i) is amended--
(1) by striking ``January 1, 2015'' in subclause (I) and
inserting ``January 1, 2017'', and
(2) by striking ``December 31, 2014'' in subclause (II) and
inserting ``December 31, 2016''.
(b) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2014.
SEC. 166. EXTENSION OF 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS
ENTERTAINMENT COMPLEXES.
(a) In General.--Section 168(i)(15)(D) is amended by
striking ``December 31, 2014'' and inserting ``December 31,
2016''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2014.
SEC. 167. EXTENSION AND MODIFICATION OF ACCELERATED
DEPRECIATION FOR BUSINESS PROPERTY ON AN INDIAN
RESERVATION.
(a) In General.--Section 168(j)(8) is amended by striking
``December 31, 2014'' and inserting ``December 31, 2016''.
(b) Election to Have Special Rules Not Apply.--Section
168(j) is amended by redesignating paragraph (8), as amended
by subsection (a), as paragraph (9), and by inserting after
paragraph (7) the following new paragraph:
``(8) Election out.--If a taxpayer makes an election under
this paragraph with respect to any class of property for any
taxable year, this subsection shall not apply to all property
in such class placed in service during such taxable year.
Such election, once made, shall be irrevocable.''.
(c) Effective Dates.--
(1) Extension.--The amendment made by subsection (a) shall
apply to property placed in service after December 31, 2014.
(2) Modification.--The amendments made by subsection (b)
shall apply to taxable years beginning after December 31,
2015.
SEC. 168. EXTENSION OF ELECTION TO EXPENSE MINE SAFETY
EQUIPMENT.
(a) In General.--Section 179E(g) is amended by striking
``December 31, 2014'' and inserting ``December 31, 2016''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2014.
SEC. 169. EXTENSION OF SPECIAL EXPENSING RULES FOR CERTAIN
FILM AND TELEVISION PRODUCTIONS; SPECIAL
EXPENSING FOR LIVE THEATRICAL PRODUCTIONS.
(a) In General.--Section 181(f) is amended by striking
``December 31, 2014'' and inserting ``December 31, 2016''.
(b) Application to Live Productions.--
(1) In general.--Paragraph (1) of section 181(a) is amended
by inserting ``, and any qualified live theatrical
production,'' after ``any qualified film or television
production''.
(2) Conforming amendments.--Section 181 is amended--
(A) by inserting ``or any qualified live theatrical
production'' after ``qualified film or television
production'' each place it appears in subsections (a)(2),
(b), and (c)(1),
(B) by inserting ``or qualified live theatrical
productions'' after ``qualified film or television
productions'' in subsection (f), and
(C) by inserting ``and live theatrical'' after ``film and
television'' in the heading.
(3) Clerical amendment.--The item relating to section 181
in the table of sections for part VI of subchapter B of
chapter 1 is amended to read as follows:
``Sec. 181. Treatment of certain qualified film and television and live
theatrical productions.''.
(c) Qualified Live Theatrical Production.--Section 181 is
amended--
(1) by redesignating subsections (e) and (f), as amended by
subsections (a) and (b), as subsections (f) and (g),
respectively, and
(2) by inserting after subsection (d) the following new
subsection:
``(e) Qualified Live Theatrical Production.--For purposes
of this section--
``(1) In general.--The term `qualified live theatrical
production' means any production described in paragraph (2)
if 75 percent of the total compensation of the production is
qualified compensation (as defined in subsection (d)(3)).
``(2) Production.--
``(A) In general.--A production is described in this
paragraph if such production is a live staged production of a
play (with or without music) which is derived from a written
book or script and is produced or presented by a taxable
entity in any venue which has an audience capacity of not
more than 3,000 or a series of venues the majority of which
have an audience capacity of not more than 3,000.
``(B) Touring companies, etc.--In the case of multiple live
staged productions--
``(i) for which the election under this section would be
allowable to the same taxpayer, and
``(ii) which are--
``(I) separate phases of a production, or
``(II) separate simultaneous stagings of the same
production in different geographical locations (not including
multiple performance locations of any one touring
production),
each such live staged production shall be treated as a
separate production.
``(C) Phase.--For purposes of subparagraph (B), the term
`phase' with respect to any qualified live theatrical
production refers to each of the following, but only if each
of the following is treated by the taxpayer as a separate
activity for all purposes of this title:
``(i) The initial staging of a live theatrical production.
``(ii) Subsequent additional stagings or touring of such
production which are produced by the same producer as the
initial staging.
``(D) Seasonal productions.--
``(i) In general.--In the case of a live staged production
not described in subparagraph (B) which is produced or
presented by a taxable entity for not more than 10 weeks of
the taxable year, subparagraph (A) shall be applied by
substituting `6,500' for `3,000'.
``(ii) Short taxable years.--For purposes of clause (i), in
the case of any taxable year of less than 12 months, the
number of weeks for which a production is produced or
presented shall be annualized by multiplying the number of
weeks the production is produced or presented during such
taxable year by 12 and dividing the result by the number of
months in such taxable year.
``(E) Exception.--A production is not described in this
paragraph if such production includes or consists of any
performance of conduct described in section 2257(h)(1) of
title 18, United States Code.''.
(d) Effective Date.--
(1) Extension.--The amendment made by subsection (a) shall
apply to productions commencing after December 31, 2014.
(2) Modifications.--
(A) In general.--The amendments made by subsections (b) and
(c) shall apply to productions commencing after December 31,
2015.
(B) Commencement.--For purposes of subparagraph (A), the
date on which a qualified live theatrical production
commences is the date of the first public performance of such
production for a paying audience.
SEC. 170. EXTENSION OF DEDUCTION ALLOWABLE WITH RESPECT TO
INCOME ATTRIBUTABLE TO DOMESTIC PRODUCTION
ACTIVITIES IN PUERTO RICO.
(a) In General.--Section 199(d)(8)(C) is amended--
(1) by striking ``first 9 taxable years'' and inserting
``first 11 taxable years'', and
(2) by striking ``January 1, 2015'' and inserting ``January
1, 2017''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2014.
SEC. 171. EXTENSION AND MODIFICATION OF EMPOWERMENT ZONE TAX
INCENTIVES.
(a) In General.--
(1) Extension.--Section 1391(d)(1)(A)(i) is amended by
striking ``December 31, 2014'' and inserting ``December 31,
2016''.
(2) Treatment of certain termination dates specified in
nominations.--In the case of a designation of an empowerment
zone the nomination for which included a termination date
which is contemporaneous with the date specified in
subparagraph (A)(i) of section 1391(d)(1) of the Internal
Revenue Code of 1986 (as in effect before the enactment of
this Act), subparagraph (B) of such section shall not apply
with respect to such designation if, after the date of the
enactment of this section, the entity which made such
nomination amends the nomination to provide for a new
termination date in such manner as the Secretary of the
Treasury (or the Secretary's designee) may provide.
(b) Modification.--Section 1394(b)(3)(B)(i) is amended--
(1) by striking ``References'' and inserting the following:
``(I) In general.--Except as provided in subclause (II),
references'', and
(2) by adding at the end the following new subclause:
[[Page H9408]]
``(II) Special rule for employee residence test.--For
purposes of subsection (b)(6) and (c)(5) of section 1397C, an
employee shall be treated as a resident of an empowerment
zone if such employee is a resident of an empowerment zone,
an enterprise community, or a qualified low-income community
within an applicable nominating jurisdiction.''.
(c) Definitions.--
(1) Qualified low-income community.--Section 1394(b)(3) is
amended by redesignating subparagraphs (C) and (D) as
subparagraphs (D) and (E), respectively, and by inserting
after subparagraph (B) the following new subparagraph:
``(C) Qualified low-income community.--For purposes of
subparagraph (B)--
``(i) In general.--The term `qualified low-income
community' means any population census tract if--
``(I) the poverty rate for such tract is at least 20
percent, or
``(II) the median family income for such tract does not
exceed 80 percent of statewide median family income (or, in
the case of a tract located within a metropolitan area,
metropolitan area median family income if greater).
Subclause (II) shall be applied using possessionwide median
family income in the case of census tracts located within a
possession of the United States.
``(ii) Targeted populations.--The Secretary shall prescribe
regulations under which 1 or more targeted populations
(within the meaning of section 103(20) of the Riegle
Community Development and Regulatory Improvement Act of 1994)
may be treated as qualified low-income communities.
``(iii) Areas not within census tracts.--In the case of an
area which is not tracted for population census tracts, the
equivalent county divisions (as defined by the Bureau of the
Census for purposes of defining poverty areas) shall be used
for purposes of determining poverty rates and median family
income.
``(iv) Modification of income requirement for census tracts
within high migration rural counties.--
``(I) In general.--In the case of a population census tract
located within a high migration rural county, clause (i)(II)
shall be applied to areas not located within a metropolitan
area by substituting `85 percent' for `80 percent'.
``(II) High migration rural county.--For purposes of this
clause, the term `high migration rural county' means any
county which, during the 20-year period ending with the year
in which the most recent census was conducted, has a net out-
migration of inhabitants from the county of at least 10
percent of the population of the county at the beginning of
such period.''.
(2) Applicable nominating jurisdiction.--Section
1394(b)(3)(D), as redesignated by paragraph (1), is amended
by adding at the end the following new clause:
``(iii) Applicable nominating jurisdiction.--The term
`applicable nominating jurisdiction' means, with respect to
any empowerment zone or enterprise community, any local
government that nominated such community for designation
under section 1391.''.
(d) Conforming Amendments.--
(1) Section 1394(b)(3)(B)(iii) is amended by striking ``or
an enterprise community'' and inserting ``, an enterprise
community, or a qualified low-income community within an
applicable nominating jurisdiction''.
(2) Section 1394(b)(3)(D), as redesignated by subsection
(c)(1), is amended by striking ``Definitions'' and inserting
``Other definitions''.
(e) Effective Dates.--
(1) Extensions.--The amendment made by subsection (a) shall
apply to taxable years beginning after December 31, 2014.
(2) Modifications.--The amendments made by subsections (b),
(c), and (d) shall apply to bonds issued after December 31,
2015.
SEC. 172. EXTENSION OF TEMPORARY INCREASE IN LIMIT ON COVER
OVER OF RUM EXCISE TAXES TO PUERTO RICO AND THE
VIRGIN ISLANDS.
(a) In General.--Section 7652(f)(1) is amended by striking
``January 1, 2015'' and inserting ``January 1, 2017''.
(b) Effective Date.--The amendment made by this section
shall apply to distilled spirits brought into the United
States after December 31, 2014.
SEC. 173. EXTENSION OF AMERICAN SAMOA ECONOMIC DEVELOPMENT
CREDIT.
(a) In General.--Section 119(d) of division A of the Tax
Relief and Health Care Act of 2006 is amended--
(1) by striking ``January 1, 2015'' each place it appears
and inserting ``January 1, 2017'',
(2) by striking ``first 9 taxable years'' in paragraph (1)
and inserting ``first 11 taxable years'', and
(3) by striking ``first 3 taxable years'' in paragraph (2)
and inserting ``first 5 taxable years''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2014.
SEC. 174. MORATORIUM ON MEDICAL DEVICE EXCISE TAX.
(a) In General.--Section 4191 is amended by adding at the
end the following new subsection:
``(c) Moratorium.--The tax imposed under subsection (a)
shall not apply to sales during the period beginning on
January 1, 2016, and ending on December 31, 2017.''.
(b) Effective Date.--The amendment made by this section
shall apply to sales after December 31, 2015.
PART 3--INCENTIVES FOR ENERGY PRODUCTION AND CONSERVATION
SEC. 181. EXTENSION AND MODIFICATION OF CREDIT FOR
NONBUSINESS ENERGY PROPERTY.
(a) Extension.--Section 25C(g)(2) is amended by striking
``December 31, 2014'' and inserting ``December 31, 2016''.
(b) Updated Energy Star Requirements.--
(1) In general.--Section 25C(c)(1) is amended by striking
``which meets'' and all that follows through
``requirements)''.
(2) Energy efficient building envelope component.--Section
25C(c) is amended by redesignating paragraphs (2) and (3) as
paragraphs (3) and (4), respectively, and by inserting after
paragraph (1) the following new paragraph:
``(2) Energy efficient building envelope component.--The
term `energy efficient building envelope component' means a
building envelope component which meets--
``(A) applicable Energy Star program requirements, in the
case of a roof or roof products,
``(B) version 6.0 Energy Star program requirements, in the
case of an exterior window, a skylight, or an exterior door,
and
``(C) the prescriptive criteria for such component
established by the 2009 International Energy Conservation
Code, as such Code (including supplements) is in effect on
the date of the enactment of the American Recovery and
Reinvestment Tax Act of 2009, in the case of any other
component.''.
(c) Effective Dates.--
(1) Extension.--The amendment made by subsection (a) shall
apply to property placed in service after December 31, 2014.
(2) Modification.--The amendments made by subsection (b)
shall apply to property placed in service after December 31,
2015.
SEC. 182. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL VEHICLE
REFUELING PROPERTY.
(a) In General.--Section 30C(g) is amended by striking
``December 31, 2014'' and inserting ``December 31, 2016''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2014.
SEC. 183. EXTENSION OF CREDIT FOR 2-WHEELED PLUG-IN ELECTRIC
VEHICLES.
(a) In General.--Section 30D(g)(3)(E) is amended by
striking ``acquired'' and all that follows and inserting the
following: ``acquired--
``(i) after December 31, 2011, and before January 1, 2014,
or
``(ii) in the case of a vehicle that has 2 wheels, after
December 31, 2014, and before January 1, 2017.''.
(b) Effective Date.--The amendments made by this section
shall apply to vehicles acquired after December 31, 2014.
SEC. 184. EXTENSION OF SECOND GENERATION BIOFUEL PRODUCER
CREDIT.
(a) In General.--Section 40(b)(6)(J)(i) is amended by
striking ``January 1, 2015'' and inserting ``January 1,
2017''.
(b) Effective Date.--The amendment made by this subsection
shall apply to qualified second generation biofuel production
after December 31, 2014.
SEC. 185. EXTENSION OF BIODIESEL AND RENEWABLE DIESEL
INCENTIVES.
(a) Income Tax Credit.--
(1) In general.--Subsection (g) of section 40A is amended
by striking ``December 31, 2014'' and inserting ``December
31, 2016''.
(2) Effective date.--The amendment made by this subsection
shall apply to fuel sold or used after December 31, 2014.
(b) Excise Tax Incentives.--
(1) In general.--Section 6426(c)(6) is amended by striking
``December 31, 2014'' and inserting ``December 31, 2016''.
(2) Payments.--Section 6427(e)(6)(B) is amended by striking
``December 31, 2014'' and inserting ``December 31, 2016''.
(3) Effective date.--The amendments made by this subsection
shall apply to fuel sold or used after December 31, 2014.
(4) Special rule for 2015.--Notwithstanding any other
provision of law, in the case of any biodiesel mixture credit
properly determined under section 6426(c) of the Internal
Revenue Code of 1986 for the period beginning on January 1,
2015, and ending on December 31, 2015, such credit shall be
allowed, and any refund or payment attributable to such
credit (including any payment under section 6427(e) of such
Code) shall be made, only in such manner as the Secretary of
the Treasury (or the Secretary's delegate) shall provide.
Such Secretary shall issue guidance within 30 days after the
date of the enactment of this Act providing for a one-time
submission of claims covering periods described in the
preceding sentence. Such guidance shall provide for a 180-day
period for the submission of such claims (in such manner as
prescribed by such Secretary) to begin not later than 30 days
after such guidance is issued. Such claims shall be paid by
such Secretary not later than 60 days after receipt. If such
Secretary has not paid pursuant to a claim filed under this
subsection within 60 days after the date of the filing of
such claim, the claim shall be paid with interest from such
date determined by using the overpayment rate and method
under section 6621 of such Code.
SEC. 186. EXTENSION AND MODIFICATION OF PRODUCTION CREDIT FOR
INDIAN COAL FACILITIES.
(a) In General.--Section 45(e)(10)(A) is amended by
striking ``9-year period'' each place it appears and
inserting ``11-year period''.
[[Page H9409]]
(b) Repeal of Limitation Based on Date Facility Is Placed
in Service.--Section 45(d)(10) is amended to read as follows:
``(10) Indian coal production facility.--The term `Indian
coal production facility' means a facility that produces
Indian coal.''.
(c) Treatment of Sales to Related Parties.--Section
45(e)(10)(A)(ii)(I) is amended by inserting ``(either
directly by the taxpayer or after sale or transfer to one or
more related persons)'' after ``unrelated person''.
(d) Credit Allowed Against Alternative Minimum Tax.--
(1) In general.--Section 38(c)(4)(B), as amended by the
preceding provisions of this Act, is amended by redesignating
clauses (v) through (x) as clauses (vi) through (xi),
respectively, and by inserting after clause (iv) the
following new clause:
``(v) the credit determined under section 45 to the extent
that such credit is attributable to section 45(e)(10)
(relating to Indian coal production facilities),''.
(2) Conforming amendment.--Section 45(e)(10) is amended by
striking subparagraph (D).
(e) Effective Dates.--
(1) Extension.--The amendments made by subsection (a) shall
apply to coal produced after December 31, 2014.
(2) Modifications.--The amendments made by subsections (b)
and (c) shall apply to coal produced and sold after December
31, 2015, in taxable years ending after such date.
(3) Credit allowed against alternative minimum tax.--The
amendments made by subsection (d) shall apply to credits
determined for taxable years beginning after December 31,
2015.
SEC. 187. EXTENSION OF CREDITS WITH RESPECT TO FACILITIES
PRODUCING ENERGY FROM CERTAIN RENEWABLE
RESOURCES.
(a) In General.--The following provisions of section 45(d)
are each amended by striking ``January 1, 2015'' each place
it appears and inserting ``January 1, 2017'':
(1) Paragraph (2)(A).
(2) Paragraph (3)(A).
(3) Paragraph (4)(B).
(4) Paragraph (6).
(5) Paragraph (7).
(6) Paragraph (9).
(7) Paragraph (11)(B).
(b) Extension of Election to Treat Qualified Facilities as
Energy Property.--Section 48(a)(5)(C)(ii) is amended by
striking ``January 1, 2015'' and inserting ``January 1,
2017''.
(c) Effective Dates.--The amendments made by this section
shall take effect on January 1, 2015.
SEC. 188. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT NEW HOMES.
(a) In General.--Section 45L(g) is amended by striking
``December 31, 2014'' and inserting ``December 31, 2016''.
(b) Effective Date.--The amendment made by this section
shall apply to homes acquired after December 31, 2014.
SEC. 189. EXTENSION OF SPECIAL ALLOWANCE FOR SECOND
GENERATION BIOFUEL PLANT PROPERTY.
(a) In General.--Section 168(l)(2)(D) is amended by
striking ``January 1, 2015'' and inserting ``January 1,
2017''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2014.
SEC. 190. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS
DEDUCTION.
(a) In General.--Section 179D(h) is amended by striking
``December 31, 2014'' and inserting ``December 31, 2016''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to property placed in service after December 31,
2014.
SEC. 191. EXTENSION OF SPECIAL RULE FOR SALES OR DISPOSITIONS
TO IMPLEMENT FERC OR STATE ELECTRIC
RESTRUCTURING POLICY FOR QUALIFIED ELECTRIC
UTILITIES.
(a) In General.--Section 451(i)(3) is amended by striking
``January 1, 2015'' and inserting ``January 1, 2017''.
(b) Effective Date.--The amendment made by this section
shall apply to dispositions after December 31, 2014.
SEC. 192. EXTENSION OF EXCISE TAX CREDITS RELATING TO
ALTERNATIVE FUELS.
(a) Extension of Alternative Fuels Excise Tax Credits.--
(1) In general.--Sections 6426(d)(5) and 6426(e)(3) are
each amended by striking ``December 31, 2014'' and inserting
``December 31, 2016''.
(2) Outlay payments for alternative fuels.--Section
6427(e)(6)(C) is amended by striking ``December 31, 2014''
and inserting ``December 31, 2016''.
(b) Effective Date.--The amendments made by this section
shall apply to fuel sold or used after December 31, 2014.
(c) Special Rule for 2015.--Notwithstanding any other
provision of law, in the case of any alternative fuel credit
properly determined under section 6426(d) of the Internal
Revenue Code of 1986 for the period beginning on January 1,
2015, and ending on December 31, 2015, such credit shall be
allowed, and any refund or payment attributable to such
credit (including any payment under section 6427(e) of such
Code) shall be made, only in such manner as the Secretary of
the Treasury (or the Secretary's delegate) shall provide.
Such Secretary shall issue guidance within 30 days after the
date of the enactment of this Act providing for a one-time
submission of claims covering periods described in the
preceding sentence. Such guidance shall provide for a 180-day
period for the submission of such claims (in such manner as
prescribed by such Secretary) to begin not later than 30 days
after such guidance is issued. Such claims shall be paid by
such Secretary not later than 60 days after receipt. If such
Secretary has not paid pursuant to a claim filed under this
subsection within 60 days after the date of the filing of
such claim, the claim shall be paid with interest from such
date determined by using the overpayment rate and method
under section 6621 of such Code.
SEC. 193. EXTENSION OF CREDIT FOR NEW QUALIFIED FUEL CELL
MOTOR VEHICLES.
(a) In General.--Section 30B(k)(1) is amended by striking
``December 31, 2014'' and inserting ``December 31, 2016''.
(b) Effective Date.--The amendment made by this section
shall apply to property purchased after December 31, 2014.
TITLE II--PROGRAM INTEGRITY
SEC. 201. MODIFICATION OF FILING DATES OF RETURNS AND
STATEMENTS RELATING TO EMPLOYEE WAGE
INFORMATION AND NONEMPLOYEE COMPENSATION TO
IMPROVE COMPLIANCE.
(a) In General.--Section 6071 is amended by redesignating
subsection (c) as subsection (d), and by inserting after
subsection (b) the following new subsection:
``(c) Returns and Statements Relating to Employee Wage
Information and Nonemployee Compensation.--Forms W-2 and W-3
and any returns or statements required by the Secretary to
report nonemployee compensation shall be filed on or before
January 31 of the year following the calendar year to which
such returns relate.''.
(b) Date for Certain Refunds.--Section 6402 is amended by
adding at the end the following new subsection:
``(m) Earliest Date for Certain Refunds.--No credit or
refund of an overpayment for a taxable year shall be made to
a taxpayer before the 15th day of the second month following
the close of such taxable year if a credit is allowed to such
taxpayer under section 24 (by reason of subsection (d)
thereof) or 32 for such taxable year.''.
(c) Conforming Amendment.--Section 6071(b) is amended by
striking ``subparts B and C of part III of this subchapter''
and inserting ``subpart B of part III of this subchapter
(other than returns and statements required to be filed with
respect to nonemployee compensation)''.
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to returns and
statements relating to calendar years beginning after the
date of the enactment of this Act.
(2) Date for certain refunds.--The amendment made by
subsection (b) shall apply to credits or refunds made after
December 31, 2016.
SEC. 202. SAFE HARBOR FOR DE MINIMIS ERRORS ON INFORMATION
RETURNS AND PAYEE STATEMENTS.
(a) In General.--Section 6721(c) is amended by adding at
the end the following new paragraph:
``(3) Safe harbor for certain de minimis errors.--
``(A) In general.--If, with respect to an information
return filed with the Secretary--
``(i) there are 1 or more failures described in subsection
(a)(2)(B) relating to an incorrect dollar amount,
``(ii) no single amount in error differs from the correct
amount by more than $100, and
``(iii) no single amount reported for tax withheld on any
information return differs from the correct amount by more
than $25,
then no correction shall be required and, for purposes of
this section, such return shall be treated as having been
filed with all of the correct required information.
``(B) Exception.--Subparagraph (A) shall not apply with
respect to any incorrect dollar amount to the extent that
such error relates to an amount with respect to which an
election is made under section 6722(c)(3)(B).
``(C) Regulatory authority.--The Secretary may issue
regulations to prevent the abuse of the safe harbor under
this paragraph, including regulations providing that this
paragraph shall not apply to the extent necessary to prevent
any such abuse.''.
(b) Failure To Furnish Correct Payee Statement.--Section
6722(c) is amended by adding at the end the following new
paragraph:
``(3) Safe harbor for certain de minimis errors.--
``(A) In general.--If, with respect to any payee
statement--
``(i) there are 1 or more failures described in subsection
(a)(2)(B) relating to an incorrect dollar amount,
``(ii) no single amount in error differs from the correct
amount by more than $100, and
``(iii) no single amount reported for tax withheld on any
information return differs from the correct amount by more
than $25,
then no correction shall be required and, for purposes of
this section, such statement shall be treated as having been
filed with all of the correct required information.
``(B) Exception.--Subparagraph (A) shall not apply to any
payee statement if the person to whom such statement is
required to be furnished makes an election (at such time and
in such manner as the Secretary may prescribe) that
subparagraph (A) not apply with respect to such statement.
``(C) Regulatory authority.--The Secretary may issue
regulations to prevent the abuse of the safe harbor under
this paragraph, including regulations providing that
[[Page H9410]]
this paragraph shall not apply to the extent necessary to
prevent any such abuse.''.
(c) Application to Broker Reporting of Basis.--Section
6045(g)(2)(B) is amended by adding at the end the following
new clause:
``(iii) Treatment of uncorrected de minimis errors.--Except
as otherwise provided by the Secretary, the customer's
adjusted basis shall be determined by treating any incorrect
dollar amount which is not required to be corrected by reason
of section 6721(c)(3) or section 6722(c)(3) as the correct
amount.''.
(d) Conforming Amendments.--
(1) Section 6721(c) is amended by striking ``Exception for
De Minimis Failures to Include All Required Information'' in
the heading and inserting ``Exceptions for Certain De Minimis
Failures''.
(2) Section 6721(c)(1) is amended by striking ``In
general'' in the heading and inserting ``Exception for de
minimis failure to include all required information''.
(e) Effective Date.--The amendments made by this section
shall apply to returns required to be filed, and payee
statements required to be provided, after December 31, 2016.
SEC. 203. REQUIREMENTS FOR THE ISSUANCE OF ITINS.
(a) In General.--Section 6109 is amended by adding at the
end the following new subsection:
``(i) Special Rules Relating to the Issuance of ITINs.--
``(1) In general.--The Secretary is authorized to issue an
individual taxpayer identification number to an individual
only if the applicant submits an application, using such form
as the Secretary may require and including the required
documentation--
``(A) in the case of an applicant not described in
subparagraph (B)--
``(i) in person to an employee of the Internal Revenue
Service or a community-based certified acceptance agent
approved by the Secretary, or
``(ii) by mail, pursuant to rules prescribed by the
Secretary, or
``(B) in the case of an applicant who resides outside of
the United States, by mail or in person to an employee of the
Internal Revenue Service or a designee of the Secretary at a
United States diplomatic mission or consular post.
``(2) Required documentation.--For purposes of this
subsection--
``(A) In general.--The term `required documentation'
includes such documentation as the Secretary may require that
proves the individual's identity, foreign status, and
residency.
``(B) Validity of documents.--The Secretary may accept only
original documents or certified copies meeting the
requirements of the Secretary.
``(3) Term of itin.--
``(A) In general.--An individual taxpayer identification
number issued after December 31, 2012, shall remain in effect
unless the individual to whom such number is issued does not
file a return of tax (or is not included as a dependent on
the return of tax of another taxpayer) for 3 consecutive
taxable years. In the case of an individual described in the
preceding sentence, such number shall expire on the last day
of such third consecutive taxable year.
``(B) Special rule for existing itins.--In the case of an
individual with respect to whom an individual taxpayer
identification number was issued before January 1, 2013, such
number shall remain in effect until the earlier of--
``(i) the applicable date, or
``(ii) if the individual does not file a return of tax (or
is not included as a dependent on the return of tax of
another taxpayer) for 3 consecutive taxable years, the
earlier of--
``(I) the last day of such third consecutive taxable year,
or
``(II) the last day of the taxable year that includes the
date of the enactment of this subsection.
``(C) Applicable date.--For purposes of subparagraph (B),
the term `applicable date' means--
``(i) January 1, 2017, in the case of an individual
taxpayer identification number issued before January 1, 2008,
``(ii) January 1, 2018, in the case of an individual
taxpayer identification number issued in 2008,
``(iii) January 1, 2019, in the case of an individual
taxpayer identification number issued in 2009 or 2010, and
``(iv) January 1, 2020, in the case of an individual
taxpayer identification number issued in 2011 or 2012.
``(4) Distinguishing itins issued solely for purposes of
treaty benefits.--The Secretary shall implement a system that
ensures that individual taxpayer identification numbers
issued solely for purposes of claiming tax treaty benefits
are used only for such purposes, by distinguishing such
numbers from other individual taxpayer identification numbers
issued.''.
(b) Audit by TIGTA.--Not later than 2 years after the date
of the enactment of this Act, and every 2 years thereafter,
the Treasury Inspector General for Tax Administration shall
conduct an audit of the program of the Internal Revenue
Service for the issuance of individual taxpayer
identification numbers pursuant to section 6109(i) of the
Internal Revenue Code of 1986 (as added by this section) and
report the results of such audit to the Committee on Finance
of the Senate and the Committee on the Ways and Means of the
House of Representatives.
(c) Community-based Certified Acceptance Agents.--The
Secretary of the Treasury, or the Secretary's delegate, shall
maintain a program for training and approving community-based
certified acceptance agents for purposes of section
6109(i)(1)(A)(i) of the Internal Revenue Code of 1986 (as
added by this section). Persons eligible to be acceptance
agents under such program include--
(1) financial institutions (as defined in section 265(b)(5)
of such Code and the regulations thereunder),
(2) colleges and universities which are described in
section 501(c)(3) of such Code and exempt from taxation under
section 501(a) of such Code,
(3) Federal agencies (as defined in section 6402(h) of such
Code),
(4) State and local governments, including agencies
responsible for vital records,
(5) community-based organizations which are described in
subsection (c)(3) or (d) of section 501 of such Code and
exempt from taxation under section 501(a) of such Code,
(6) persons that provide assistance to taxpayers in the
preparation of their tax returns, and
(7) other persons or categories of persons as authorized by
regulations or other guidance of the Secretary of the
Treasury.
(d) ITIN Study.--
(1) In general.--The Secretary of the Treasury, or the
Secretary's delegate, shall conduct a study on the
effectiveness of the application process for individual
taxpayer identification numbers before the implementation of
the amendments made by this section, the effects of the
amendments made by this section on such application process,
the comparative effectiveness of an in-person review process
for application versus other methods of reducing fraud in the
ITIN program and improper payments to ITIN holders as a
result, and possible administrative and legislative
recommendations to improve such process.
(2) Specific requirements.--Such study shall include an
evaluation of the following:
(A) Possible administrative and legislative recommendations
to reduce fraud and improper payments through the use of
individual taxpayer identification numbers (hereinafter
referred to as ``ITINs'').
(B) If data supports an in-person initial review of ITIN
applications to reduce fraud and improper payments, the
administrative and legislative steps needed to implement such
an in-person initial review of ITIN applications, in
conjunction with an expansion of the community-based
certified acceptance agent program under subsection (c), with
a goal of transitioning to such a program by 2020.
(C) Strategies for more efficient processing of ITIN
applications.
(D) The acceptance agent program as in existence on the
date of the enactment of this Act and ways to expand the
geographic availability of agents through the community-based
certified acceptance agent program under subsection (c).
(E) Strategies for the Internal Revenue Service to work
with other Federal agencies, State and local governments, and
other organizations and persons described in subsection (c)
to encourage participation in the community-based certified
acceptance agent program under subsection (c) to facilitate
in-person initial review of ITIN applications.
(F) Typical characteristics (derived from Form W-7 and
other sources) of mail applications for ITINs as compared
with typical characteristics of in-person applications.
(G) Typical characteristics (derived from 17 Form W-7 and
other sources) of ITIN applications before the Internal
Revenue Service revised its application procedures in 2012 as
compared with typical characteristics of ITIN applications
made after such revisions went into effect.
(3) Report.--The Secretary, or the Secretary's delegate,
shall submit to the Committee on Finance of the Senate and
the Committee on Ways and Means of the House of
Representatives a report detailing the study under paragraph
(1) and its findings not later than 1 year after the date of
the enactment of this Act.
(4) Administrative steps.--The Secretary of the Treasury
shall implement any administrative steps identified by the
report under paragraph (3) not later than 180 days after
submitting such report.
(e) Mathematical or Clerical Error Authority.--Paragraph
(2) of section 6213(g) of the Internal Revenue Code of 1986
is amended by striking ``and'' at the end of subparagraph
(M), by striking the period at the end of subparagraph (N)
and inserting ``, and'', and by inserting after subparagraph
(N) the following new subparagraph:
``(O) the inclusion on a return of an individual taxpayer
identification number issued under section 6109(i) which has
expired, been revoked by the Secretary, or is otherwise
invalid.''.
(f) Effective Date.--The amendments made by this section
shall apply to applications for individual taxpayer
identification numbers made after the date of the enactment
of this Act.
SEC. 204. PREVENTION OF RETROACTIVE CLAIMS OF EARNED INCOME
CREDIT AFTER ISSUANCE OF SOCIAL SECURITY
NUMBER.
(a) In General.--Section 32(m) is amended by inserting ``on
or before the due date for filing the return for the taxable
year'' before the period at the end.
(b) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendment made by this
[[Page H9411]]
section shall apply to any return of tax, and any amendment
or supplement to any return of tax, which is filed after the
date of the enactment of this Act.
(2) Exception for timely-filed 2015 returns.--The amendment
made by this section shall not apply to any return of tax
(other than an amendment or supplement to any return of tax)
for any taxable year which includes the date of the enactment
of this Act if such return is filed on or before the due date
for such return of tax.
SEC. 205. PREVENTION OF RETROACTIVE CLAIMS OF CHILD TAX
CREDIT.
(a) Qualifying Child Identification Requirement.--Section
24(e) is amended by inserting ``and such taxpayer
identification number was issued on or before the due date
for filing such return'' before the period at the end.
(b) Taxpayer Identification Requirement.--Section 24(e), as
amended by subsection (a) is amended--
(1) by striking ``Identification Requirement.--No credit
shall be allowed'' and inserting the following:
``Identification Requirements.--
``(1) Qualifying child identification requirement.--No
credit shall be allowed'', and
(2) by adding at the end the following new paragraph:
``(2) Taxpayer identification requirement.--No credit shall
be allowed under this section if the identifying number of
the taxpayer was issued after the due date for filing the
return for the taxable year.''.
(c) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to any return of tax, and any amendment or supplement
to any return of tax, which is filed after the date of the
enactment of this Act.
(2) Exception for timely-filed 2015 returns.--The
amendments made by this section shall not apply to any return
of tax (other than an amendment or supplement to any return
of tax) for any taxable year which includes the date of the
enactment of this Act if such return is filed on or before
the due date for such return of tax.
SEC. 206. PREVENTION OF RETROACTIVE CLAIMS OF AMERICAN
OPPORTUNITY TAX CREDIT.
(a) In General.--Section 25A(i) is amended--
(1) by striking paragraph (6), and
(2) by inserting after paragraph (5) the following new
paragraph:
``(6) Identification numbers.--
``(A) Student.--The requirements of subsection (g)(1) shall
not be treated as met with respect to the Hope Scholarship
Credit unless the individual's taxpayer identification number
was issued on or before the due date for filing the return of
tax for the taxable year.
``(B) Taxpayer.--No Hope Scholarship Credit shall be
allowed under this section if the identifying number of the
taxpayer was issued after the due date for filing the return
for the taxable year.''.
(b) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendment made by subsection (a)(2) shall apply to any return
of tax, and any amendment or supplement to any return of tax,
which is filed after the date of the enactment of this Act.
(2) Exception for timely-filed 2015 returns.--The amendment
made by subsection (a)(2) shall not apply to any return of
tax (other than an amendment or supplement to any return of
tax) for any taxable year which includes the date of the
enactment of this Act if such return is filed on or before
the due date for such return of tax.
(3) Repeal of deadwood.--The amendment made by subsection
(a)(1) shall take effect on the date of the enactment of this
Act.
SEC. 207. PROCEDURES TO REDUCE IMPROPER CLAIMS.
(a) Due Diligence Requirements.--Section 6695(g) is
amended--
(1) by striking ``section 32''and inserting ``section 24,
25A(a)(1), or 32'', and
(2) in the heading by inserting ``Child Tax Credit;
American Opportunity Tax Credit; and'' before ``Earned Income
Credit''.
(b) Return Preparer Due Diligence Study.--
(1) In general.--The Secretary of the Treasury, or his
delegate, shall conduct a study of the effectiveness of tax
return preparer due diligence requirements for claiming the
earned income tax credit under section 32 of the Internal
Revenue Code of 1986, the child tax credit under section 24
of such Code, and the American opportunity tax credit under
section 25A(i) of such Code.
(2) Requirements.--Such study shall include an evaluation
of the following:
(A) The effectiveness of the questions currently asked as
part of the due-diligence requirement with respect to
minimizing error and fraud.
(B) Whether all such questions are necessary and support
improved compliance.
(C) The comparative effectiveness of such questions
relative to other means of determining (i) eligibility for
these tax credits and (ii) the correct amount of tax credit.
(D) Whether due diligence of this type should apply to
other methods of tax filing and whether such requirements
should vary based on the methods to increase effectiveness.
(E) The effectiveness of the preparer penalty under section
6695(g) in enforcing the due diligence requirements.
(3) Report.--The Secretary, or his delegate, shall submit
to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate a
report detailing the study and its findings--
(A) in the case of the portion of the study that relates to
the earned income tax credit, not later than 1 year after the
date of enactment of this Act, and
(B) in the case of the portions of the study that relate to
the child tax credit and the American opportunity tax credit,
not later than 2 years after the date of the enactment of
this Act.
(c) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2015.
SEC. 208. RESTRICTIONS ON TAXPAYERS WHO IMPROPERLY CLAIMED
CREDITS IN PRIOR YEAR.
(a) Restrictions.--
(1) Child tax credit.--Section 24 is amended by adding at
the end the following new subsection:
``(g) Restrictions on Taxpayers Who Improperly Claimed
Credit in Prior Year.--
``(1) Taxpayers making prior fraudulent or reckless
claims.--
``(A) In general.--No credit shall be allowed under this
section for any taxable year in the disallowance period.
``(B) Disallowance period.--For purposes of subparagraph
(A), the disallowance period is--
``(i) the period of 10 taxable years after the most recent
taxable year for which there was a final determination that
the taxpayer's claim of credit under this section was due to
fraud, and
``(ii) the period of 2 taxable years after the most recent
taxable year for which there was a final determination that
the taxpayer's claim of credit under this section was due to
reckless or intentional disregard of rules and regulations
(but not due to fraud).
``(2) Taxpayers making improper prior claims.--In the case
of a taxpayer who is denied credit under this section for any
taxable year as a result of the deficiency procedures under
subchapter B of chapter 63, no credit shall be allowed under
this section for any subsequent taxable year unless the
taxpayer provides such information as the Secretary may
require to demonstrate eligibility for such credit.''.
(2) American opportunity tax credit.--Section 25A(i), as
amended by the preceding provisions of this Act, is amended
by adding at the end the following new paragraph:
``(7) Restrictions on taxpayers who improperly claimed
credit in prior year.--
``(A) Taxpayers making prior fraudulent or reckless
claims.--
``(i) In general.--No credit shall be allowed under this
section for any taxable year in the disallowance period.
``(ii) Disallowance period.--For purposes of clause (i),
the disallowance period is--
``(I) the period of 10 taxable years after the most recent
taxable year for which there was a final determination that
the taxpayer's claim of credit under this section was due to
fraud, and
``(II) the period of 2 taxable years after the most recent
taxable year for which there was a final determination that
the taxpayer's claim of credit under this section was due to
reckless or intentional disregard of rules and regulations
(but not due to fraud).
``(B) Taxpayers making improper prior claims.--In the case
of a taxpayer who is denied credit under this section for any
taxable year as a result of the deficiency procedures under
subchapter B of chapter 63, no credit shall be allowed under
this section for any subsequent taxable year unless the
taxpayer provides such information as the Secretary may
require to demonstrate eligibility for such credit.''.
(b) Math Error Authority.--
(1) Earned income tax credit.--Section 6213(g)(2)(K) is
amended by inserting before the comma at the end the
following: ``or an entry on the return claiming the credit
under section 32 for a taxable year for which the credit is
disallowed under subsection (k)(1) thereof''.
(2) American opportunity tax credit and child tax credit.--
Section 6213(g)(2), as amended by the preceding provisions of
this Act, is amended by striking ``and'' at the end of
subparagraph (N), by striking the period at the end of
subparagraph (O), and by inserting after subparagraph (O) the
following new subparagraphs:
``(P) an omission of information required by section
24(h)(2) or an entry on the return claiming the credit under
section 24 for a taxable year for which the credit is
disallowed under subsection (h)(1) thereof, and
``(Q) an omission of information required by section
25A(i)(8)(B) or an entry on the return claiming the credit
determined under section 25A(i) for a taxable year for which
the credit is disallowed under paragraph (8)(A) thereof.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2015.
SEC. 209. TREATMENT OF CREDITS FOR PURPOSES OF CERTAIN
PENALTIES.
(a) Application of Underpayment Penalties.--Section 6664(a)
is amended by adding at the end the following: ``A rule
similar to the rule of section 6211(b)(4) shall apply for
purposes of this subsection.''.
(b) Penalty for Erroneous Claim of Credit Made Applicable
to Earned Income
[[Page H9412]]
Credit.--Section 6676(a) is amended by striking ``(other than
a claim for a refund or credit relating to the earned income
credit under section 32)''.
(c) Reasonable Cause Exception for Erroneous Claim for
Refund or Credit.--
(1) In general.--Section 6676(a) is amended by striking
``has a reasonable basis'' and inserting ``is due to
reasonable cause''.
(2) Noneconomic substance transactions.--Section 6676(c) is
amended by striking ``having a reasonable basis'' and
inserting ``due to reasonable cause''.
(d) Effective Dates.--
(1) Underpayment penalties.--The amendment made by
subsection (a) shall apply to--
(A) returns filed after the date of the enactment of this
Act, and
(B) returns filed on or before such date if the period
specified in section 6501 of the Internal Revenue Code of
1986 for assessment of the taxes with respect to which such
return relates has not expired as of such date.
(2) Penalty for erroneous claim of credit.--The amendment
made by subsection (b) shall apply to claims filed after the
date of the enactment of this Act.
SEC. 210. INCREASE THE PENALTY APPLICABLE TO PAID TAX
PREPARERS WHO ENGAGE IN WILLFUL OR RECKLESS
CONDUCT.
(a) In General.--Section 6694(b)(1)(B) is amended by
striking ``50 percent'' and inserting ``75 percent''.
(b) Effective Date.--The amendment made by this section
shall apply to returns prepared for taxable years ending
after the date of the enactment of this Act.
SEC. 211. EMPLOYER IDENTIFICATION NUMBER REQUIRED FOR
AMERICAN OPPORTUNITY TAX CREDIT.
(a) In General.--Section 25A(i)(6), as added by this Act,
is amended by adding at the end the following new
subparagraph:
``(C) Institution.--No Hope Scholarship Credit shall be
allowed under this section unless the taxpayer includes the
employer identification number of any institution to which
qualified tuition and related expenses were paid with respect
to the individual.''.
(b) Information Reporting.--Section 6050S(b)(2) is amended
by striking ``and'' at the end of subparagraph (B), by
redesignating subparagraph (C) as subparagraph (D), and by
inserting after subparagraph (B) the following new
subparagraph:
``(C) the employer identification number of the
institution, and''.
(c) Effective Date.--
(1) Subsection (a).--The amendments made by subsection (a)
shall apply to taxable years beginning after December 31,
2015.
(2) Subsection (b).--The amendments made by subsection (b)
shall apply to expenses paid after December 31, 2015, for
education furnished in academic periods beginning after such
date.
SEC. 212. HIGHER EDUCATION INFORMATION REPORTING ONLY TO
INCLUDE QUALIFIED TUITION AND RELATED EXPENSES
ACTUALLY PAID.
(a) In General.--Section 6050S(b)(2)(B)(i) is amended by
striking ``or the aggregate amount billed''.
(b) Effective Date.--The amendments made by subsection (b)
shall apply to expenses paid after December 31, 2015, for
education furnished in academic periods beginning after such
date.
TITLE III--MISCELLANEOUS PROVISIONS
Subtitle A--Family Tax Relief
SEC. 301. EXCLUSION FOR AMOUNTS RECEIVED UNDER THE WORK
COLLEGES PROGRAM.
(a) In General.--Paragraph (2) of section 117(c) is amended
by striking ``or'' at the end of subparagraph (A), by
striking the period at the end of subparagraph (B) and
inserting ``, or'', and by adding at the end the following
new subparagraph:
``(C) a comprehensive student work-learning-service program
(as defined in section 448(e) of the Higher Education Act of
1965) operated by a work college (as defined in such
section).''.
(b) Effective Date.--The amendments made by this section
shall apply to amounts received in taxable years beginning
after the date of the enactment of this Act.
SEC. 302. IMPROVEMENTS TO SECTION 529 ACCOUNTS.
(a) Computer Technology and Equipment Permanently Allowed
as a Qualified Higher Education Expense for Section 529
Accounts.--
(1) In general.--Section 529(e)(3)(A)(iii) is amended to
read as follows:
``(iii) expenses for the purchase of computer or peripheral
equipment (as defined in section 168(i)(2)(B)), computer
software (as defined in section 197(e)(3)(B)), or Internet
access and related services, if such equipment, software, or
services are to be used primarily by the beneficiary during
any of the years the beneficiary is enrolled at an eligible
educational institution.''.
(2) Effective date.--The amendment made by this subsection
shall apply to taxable years beginning after December 31,
2014.
(b) Elimination of Distribution Aggregation Requirements.--
(1) In general.--Section 529(c)(3) is amended by striking
subparagraph (D).
(2) Effective date.--The amendment made by this subsection
shall apply to distributions after December 31, 2014.
(c) Recontribution of Refunded Amounts.--
(1) In general.--Section 529(c)(3), as amended by
subsection (b), is amended by adding at the end the following
new subparagraph:
``(D) Special rule for contributions of refunded amounts.--
In the case of a beneficiary who receives a refund of any
qualified higher education expenses from an eligible
educational institution, subparagraph (A) shall not apply to
that portion of any distribution for the taxable year which
is recontributed to a qualified tuition program of which such
individual is a beneficiary, but only to the extent such
recontribution is made not later than 60 days after the date
of such refund and does not exceed the refunded amount.''.
(2) Effective date.--
(A) In general.--The amendment made by this subsection
shall apply with respect to refunds of qualified higher
education expenses after December 31, 2014.
(B) Transition rule.--In the case of a refund of qualified
higher education expenses received after December 31, 2014,
and before the date of the enactment of this Act, section
529(c)(3)(D) of the Internal Revenue Code of 1986 (as added
by this subsection) shall be applied by substituting ``not
later than 60 days after the date of the enactment of this
subparagraph'' for ``not later than 60 days after the date of
such refund''.
SEC. 303. ELIMINATION OF RESIDENCY REQUIREMENT FOR QUALIFIED
ABLE PROGRAMS.
(a) In General.--Section 529A(b)(1) is amended by striking
subparagraph (C), by inserting ``and'' at the end of
subparagraph (B), and by redesignating subparagraph (D) as
subparagraph (C).
(b) Conforming Amendments.--
(1) The second sentence of section 529A(d)(3) is amended by
striking ``and State of residence''.
(2) Section 529A(e) is amended by striking paragraph (7).
(c) Technical Amendments.--
(1) Section 529A(d)(4) is amended by striking ``section 4''
and inserting ``section 103''.
(2) Section 529A(c)(1)(C)(i) is amended by striking
``family member'' and inserting ``member of the family''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2014.
SEC. 304. EXCLUSION FOR WRONGFULLY INCARCERATED INDIVIDUALS.
(a) In General.--Part III of subchapter B of chapter 1 is
amended by inserting before section 140 the following new
section:
``SEC. 139F. CERTAIN AMOUNTS RECEIVED BY WRONGFULLY
INCARCERATED INDIVIDUALS.
``(a) Exclusion From Gross Income.--In the case of any
wrongfully incarcerated individual, gross income shall not
include any civil damages, restitution, or other monetary
award (including compensatory or statutory damages and
restitution imposed in a criminal matter) relating to the
incarceration of such individual for the covered offense for
which such individual was convicted.
``(b) Wrongfully Incarcerated Individual.--For purposes of
this section, the term `wrongfully incarcerated individual'
means an individual--
``(1) who was convicted of a covered offense,
``(2) who served all or part of a sentence of imprisonment
relating to that covered offense, and
``(3)(A) who was pardoned, granted clemency, or granted
amnesty for that covered offense because that individual was
innocent of that covered offense, or
``(B)(i) for whom the judgment of conviction for that
covered offense was reversed or vacated, and
``(ii) for whom the indictment, information, or other
accusatory instrument for that covered offense was dismissed
or who was found not guilty at a new trial after the judgment
of conviction for that covered offense was reversed or
vacated.
``(c) Covered Offense.--For purposes of this section, the
term `covered offense' means any criminal offense under
Federal or State law, and includes any criminal offense
arising from the same course of conduct as that criminal
offense.''.
(b) Conforming Amendment.--The table of sections for part
III of subchapter B of chapter 1 is amended by inserting
after the item relating to section 139E the following new
item:
``Sec. 139F. Certain amounts received by wrongfully incarcerated
individuals.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning before, on, or after
the date of the enactment of this Act.
(d) Waiver of Limitations.--If the credit or refund of any
overpayment of tax resulting from the application of this Act
to a period before the date of enactment of this Act is
prevented as of such date by the operation of any law or rule
of law (including res judicata), such credit or refund may
nevertheless be allowed or made if the claim therefor is
filed before the close of the 1-year period beginning on the
date of the enactment of this Act.
SEC. 305. CLARIFICATION OF SPECIAL RULE FOR CERTAIN
GOVERNMENTAL PLANS.
(a) In General.--Paragraph (1) of section 105(j) is
amended--
(1) by striking ``the taxpayer'' and inserting ``a
qualified taxpayer'', and
(2) by striking ``deceased plan participant's beneficiary''
and inserting ``deceased employee's beneficiary (other than
an individual described in paragraph (3)(B))''.
[[Page H9413]]
(b) Qualified Taxpayer.--Subsection (j) of section 105 is
amended by adding at the end the following new paragraph:
``(3) Qualified taxpayer.--For purposes of paragraph (1),
with respect to an accident or health plan described in
paragraph (2), the term `qualified taxpayer' means a taxpayer
who is--
``(A) an employee, or
``(B) the spouse, dependent (as defined for purposes of
subsection (b)), or child (as defined for purposes of such
subsection) of an employee.''.
(c) Application to Political Subdivisions of States.--
Paragraph (2) of section 105(j) is amended--
(1) by inserting ``or established by or on behalf of a
State or political subdivision thereof'' after ``public
retirement system'', and
(2) by inserting ``or 501(c)(9)'' after ``section 115'' in
subparagraph (B).
(d) Effective Date.--The amendments made by this section
shall apply to payments after the date of the enactment of
this Act.
SEC. 306. ROLLOVERS PERMITTED FROM OTHER RETIREMENT PLANS
INTO SIMPLE RETIREMENT ACCOUNTS.
(a) In General.--Section 408(p)(1)(B) is amended by
inserting ``except in the case of a rollover contribution
described in subsection (d)(3)(G) or a rollover contribution
otherwise described in subsection (d)(3) or in section
402(c), 403(a)(4), 403(b)(8), or 457(e)(16), which is made
after the 2-year period described in section 72(t)(6),''
before ``with respect to which the only contributions
allowed''.
(b) Effective Date.--The amendments made by this section
shall apply to contributions made after the date of the
enactment of this Act.
SEC. 307. TECHNICAL AMENDMENT RELATING TO ROLLOVER OF CERTAIN
AIRLINE PAYMENT AMOUNTS.
(a) In General.--Section 1106(a) of the FAA Modernization
and Reform Act of 2012 (26 U.S.C. 408 note) is amended by
adding at the end the following new paragraph:
``(6) Special rule for certain airline payment amounts.--In
the case of any amount which became an airline payment amount
by reason of the amendments made by section 1(b) of Public
Law 113-243 (26 U.S.C. 408 note), paragraph (1) shall be
applied by substituting `(or, if later, within the period
beginning on December 18, 2014, and ending on the date which
is 180 days after the date of enactment of the Protecting
Americans from Tax Hikes Act of 2015)' for `(or, if later,
within 180 days of the date of the enactment of this
Act)'.''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in Public Law 113-243 (26
U.S.C. 408 note).
SEC. 308. TREATMENT OF EARLY RETIREMENT DISTRIBUTIONS FOR
NUCLEAR MATERIALS COURIERS, UNITED STATES
CAPITOL POLICE, SUPREME COURT POLICE, AND
DIPLOMATIC SECURITY SPECIAL AGENTS.
(a) In General.--Section 72(t)(10)(B)(ii), as added by
Public Law 114-26, is amended by striking ``or any'' and
inserting ``any'' and by inserting before the period at the
end the following: ``, any nuclear materials courier
described in section 8331(27) or 8401(33) of such title, any
member of the United States Capitol Police, any member of the
Supreme Court Police, or any diplomatic security special
agent of the Department of State''.
(b) Effective Date.--The amendments made by this section
shall apply to distributions after December 31, 2015.
SEC. 309. PREVENTION OF EXTENSION OF TAX COLLECTION PERIOD
FOR MEMBERS OF THE ARMED FORCES WHO ARE
HOSPITALIZED AS A RESULT OF COMBAT ZONE
INJURIES.
(a) In General.--Section 7508(e) is amended by adding at
the end the following new paragraph:
``(3) Collection period after assessment not extended as a
result of hospitalization.--With respect to any period of
continuous qualified hospitalization described in subsection
(a) and the next 180 days thereafter, subsection (a) shall
not apply in the application of section 6502.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxes assessed before, on, or after the date
of the enactment of this Act.
Subtitle B--Real Estate Investment Trusts
SEC. 311. RESTRICTION ON TAX-FREE SPINOFFS INVOLVING REITS.
(a) In General.--Section 355 is amended by adding at the
end the following new subsection:
``(h) Restriction on Distributions Involving Real Estate
Investment Trusts.--
``(1) In general.--This section (and so much of section 356
as relates to this section) shall not apply to any
distribution if either the distributing corporation or
controlled corporation is a real estate investment trust.
``(2) Exceptions for certain spinoffs.--
``(A) Spinoffs of a real estate investment trust by another
real estate investment trust.--Paragraph (1) shall not apply
to any distribution if, immediately after the distribution,
the distributing corporation and the controlled corporation
are both real estate investment trusts.
``(B) Spinoffs of certain taxable reit subsidiaries.--
Paragraph (1) shall not apply to any distribution if--
``(i) the distributing corporation has been a real estate
investment trust at all times during the 3-year period ending
on the date of such distribution,
``(ii) the controlled corporation has been a taxable REIT
subsidiary (as defined in section 856(l)) of the distributing
corporation at all times during such period, and
``(iii) the distributing corporation had control (as
defined in section 368(c) applied by taking into account
stock owned directly or indirectly, including through one or
more corporations or partnerships, by the distributing
corporation) of the controlled corporation at all times
during such period.
A controlled corporation will be treated as meeting the
requirements of clauses (ii) and (iii) if the stock of such
corporation was distributed by a taxable REIT subsidiary in a
transaction to which this section (or so much of section 356
as relates to this section) applies and the assets of such
corporation consist solely of the stock or assets of assets
held by one or more taxable REIT subsidiaries of the
distributing corporation meeting the requirements of clauses
(ii) and (iii). For purposes of clause (iii), control of a
partnership means ownership of 80 percent of the profits
interest and 80 percent of the capital interests.''.
(b) Prevention of REIT Election Following Tax-free Spin
Off.--Section 856(c) is amended by redesignating paragraph
(8) as paragraph (9) and by inserting after paragraph (7) the
following new paragraph:
``(8) Election after tax-free reorganization.--If a
corporation was a distributing corporation or a controlled
corporation (other than a controlled corporation with respect
to a distribution described in section 355(h)(2)(A)) with
respect to any distribution to which section 355 (or so much
of section 356 as relates to section 355) applied, such
corporation (and any successor corporation) shall not be
eligible to make any election under paragraph (1) for any
taxable year beginning before the end of the 10-year period
beginning on the date of such distribution.''.
(c) Effective Date.--The amendments made by this section
shall apply to distributions on or after December 7, 2015,
but shall not apply to any distribution pursuant to a
transaction described in a ruling request initially submitted
to the Internal Revenue Service on or before such date, which
request has not been withdrawn and with respect to which a
ruling has not been issued or denied in its entirety as of
such date.
SEC. 312. REDUCTION IN PERCENTAGE LIMITATION ON ASSETS OF
REIT WHICH MAY BE TAXABLE REIT SUBSIDIARIES.
(a) In General.--Section 856(c)(4)(B)(ii) is amended by
striking ``25 percent'' and inserting ``20 percent''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2017.
SEC. 313. PROHIBITED TRANSACTION SAFE HARBORS.
(a) Alternative 3-Year Averaging Test for Percentage of
Assets That Can Be Sold Annually.--
(1) In general.--Clause (iii) of section 857(b)(6)(C) is
amended by inserting before the semicolon at the end the
following: ``, or (IV) the trust satisfies the requirements
of subclause (II) applied by substituting `20 percent' for
`10 percent' and the 3-year average adjusted bases percentage
for the taxable year (as defined in subparagraph (G)) does
not exceed 10 percent, or (V) the trust satisfies the
requirements of subclause (III) applied by substituting `20
percent' for `10 percent' and the 3-year average fair market
value percentage for the taxable year (as defined in
subparagraph (H)) does not exceed 10 percent''.
(2) 3-year average adjusted bases and fair market value
percentages.--Paragraph (6) of section 857(b) is amended by
redesignating subparagraphs (G) and (H) as subparagraphs (I)
and (J), respectively, and by inserting after subparagraph
(F) the following new subparagraphs:
``(G) 3-year average adjusted bases percentage.--The term
`3-year average adjusted bases percentage' means, with
respect to any taxable year, the ratio (expressed as a
percentage) of--
``(i) the aggregate adjusted bases (as determined for
purposes of computing earnings and profits) of property
(other than sales of foreclosure property or sales to which
section 1033 applies) sold during the 3 taxable year period
ending with such taxable year, divided by
``(ii) the sum of the aggregate adjusted bases (as so
determined) of all of the assets of the trust as of the
beginning of each of the 3 taxable years which are part of
the period referred to in clause (i).
``(H) 3-year average fair market value percentage.--The
term `3-year average fair market value percentage' means,
with respect to any taxable year, the ratio (expressed as a
percentage) of--
``(i) the fair market value of property (other than sales
of foreclosure property or sales to which section 1033
applies) sold during the 3 taxable year period ending with
such taxable year, divided by
``(ii) the sum of the fair market value of all of the
assets of the trust as of the beginning of each of the 3
taxable years which are part of the period referred to in
clause (i).''.
(3) Conforming amendments.--Clause (iv) of section
857(b)(6)(D) is amended by adding ``or'' at the end of
subclause (III) and by adding at the end the following new
subclauses:
``(IV) the trust satisfies the requirements of subclause
(II) applied by substituting `20 percent' for `10 percent'
and the 3-year average adjusted bases percentage for the
taxable
[[Page H9414]]
year (as defined in subparagraph (G)) does not exceed 10
percent, or
``(V) the trust satisfies the requirements of subclause
(III) applied by substituting `20 percent' for `10 percent'
and the 3-year average fair market value percentage for the
taxable year (as defined in subparagraph (H)) does not exceed
10 percent,''.
(b) Application of Safe Harbors Independent of
Determination Whether Real Estate Asset Is Inventory
Property.--
(1) In general.--Subparagraphs (C) and (D) of section
857(b)(6) are each amended by striking ``and which is
described in section 1221(a)(1)'' in the matter preceding
clause (i).
(2) No inference from safe harbors.--Subparagraph (F) of
section 857(b)(6) is amended to read as follows:
``(F) No inference with respect to treatment as inventory
property.--The determination of whether property is described
in section 1221(a)(1) shall be made without regard to this
paragraph.''.
(c) Effective Dates.--
(1) In general.--The amendments made by subsection (a)
shall apply to taxable years beginning after the date of the
enactment of this Act.
(2) Application of safe harbors.--
(A) In general.--Except as provided in subparagraph (B),
the amendments made by subsection (b) shall take effect as if
included in section 3051 of the Housing Assistance Tax Act of
2008.
(B) Retroactive application of no inference not applicable
to certain timber property previously treated as not
inventory property.--The amendment made by subsection (b)(2)
shall not apply to any sale of property to which section
857(b)(6)(G) of the Internal Revenue Code of 1986 (as in
effect on the day before the date of the enactment of this
Act) applies.
SEC. 314. REPEAL OF PREFERENTIAL DIVIDEND RULE FOR PUBLICLY
OFFERED REITS.
(a) In General.--Section 562(c) is amended by inserting
``or a publicly offered REIT'' after ``a publicly offered
regulated investment company (as defined in section
67(c)(2)(B))''.
(b) Publicly Offered REIT.--Section 562(c), as amended by
subsection (a), is amended--
(1) by striking ``Except in the case of'' and inserting the
following:
``(1) In general.--Except in the case of'', and
(2) by adding at the end the following new paragraph:
``(2) Publicly offered reit.--For purposes of this
subsection, the term `publicly offered REIT' means a real
estate investment trust which is required to file annual and
periodic reports with the Securities and Exchange Commission
under the Securities Exchange Act of 1934.''.
(c) Effective Date.--The amendments made by this section
shall apply to distributions in taxable years beginning after
December 31, 2014.
SEC. 315. AUTHORITY FOR ALTERNATIVE REMEDIES TO ADDRESS
CERTAIN REIT DISTRIBUTION FAILURES.
(a) In General.--Subsection (e) of section 562 is amended--
(1) by striking ``In the case of a real estate investment
trust'' and inserting the following:
``(1) Determination of earnings and profits for purposes of
dividends paid deduction.--In the case of a real estate
investment trust'', and
(2) by adding at the end the following new paragraph:
``(2) Authority to provide alternative remedies for certain
failures.--In the case of a failure of a distribution by a
real estate investment trust to comply with the requirements
of subsection (c), the Secretary may provide an appropriate
remedy to cure such failure in lieu of not considering the
distribution to be a dividend for purposes of computing the
dividends paid deduction if--
``(A) the Secretary determines that such failure is
inadvertent or is due to reasonable cause and not due to
willful neglect, or
``(B) such failure is of a type of failure which the
Secretary has identified for purposes of this paragraph as
being described in subparagraph (A).''.
(b) Effective Date.--The amendments made by this section
shall apply to distributions in taxable years beginning after
December 31, 2015.
SEC. 316. LIMITATIONS ON DESIGNATION OF DIVIDENDS BY REITS.
(a) In General.--Section 857 is amended by redesignating
subsection (g) as subsection (h) and by inserting after
subsection (f) the following new subsection:
``(g) Limitations on Designation of Dividends.--
``(1) Overall limitation.--The aggregate amount of
dividends designated by a real estate investment trust under
subsections (b)(3)(C) and (c)(2)(A) with respect to any
taxable year may not exceed the dividends paid by such trust
with respect to such year. For purposes of the preceding
sentence, dividends paid after the close of the taxable year
described in section 858 shall be treated as paid with
respect to such year.
``(2) Proportionality.--The Secretary may prescribe
regulations or other guidance requiring the proportionality
of the designation of particular types of dividends among
shares or beneficial interests of a real estate investment
trust.''.
(b) Effective Date.--The amendments made by this section
shall apply to distributions in taxable years beginning after
December 31, 2015.
SEC. 317. DEBT INSTRUMENTS OF PUBLICLY OFFERED REITS AND
MORTGAGES TREATED AS REAL ESTATE ASSETS.
(a) Debt Instruments of Publicly Offered REITs Treated as
Real Estate Assets.--
(1) In general.--Subparagraph (B) of section 856(c)(5) is
amended--
(A) by striking ``and shares'' and inserting ``, shares'',
and
(B) by inserting ``, and debt instruments issued by
publicly offered REITs'' before the period at the end of the
first sentence.
(2) Income from nonqualified debt instruments of publicly
offered reits not qualified for purposes of satisfying the 75
percent gross income test.--Subparagraph (H) of section
856(c)(3) is amended by inserting ``(other than a
nonqualified publicly offered REIT debt instrument)'' after
``real estate asset''.
(3) 25 percent asset limitation on holding of nonqualified
debt instruments of publicly offered reits.--Subparagraph (B)
of section 856(c)(4) is amended by redesignating clause (iii)
as clause (iv) and by inserting after clause (ii) the
following new clause:
``(iii) not more than 25 percent of the value of its total
assets is represented by nonqualified publicly offered REIT
debt instruments, and''.
(4) Definitions related to debt instruments of publicly
offered reits.--Paragraph (5) of section 856(c) is amended by
adding at the end the following new subparagraph:
``(L) Definitions related to debt instruments of publicly
offered reits.--
``(i) Publicly offered reit.--The term `publicly offered
REIT' has the meaning given such term by section 562(c)(2).
``(ii) Nonqualified publicly offered reit debt
instrument.--The term `nonqualified publicly offered REIT
debt instrument' means any real estate asset which would
cease to be a real estate asset if subparagraph (B) were
applied without regard to the reference to `debt instruments
issued by publicly offered REITs'.''.
(b) Interests in Mortgages on Interests in Real Property
Treated as Real Estate Assets.--Subparagraph (B) of section
856(c)(5) is amended by inserting ``or on interests in real
property'' after ``interests in mortgages on real property''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2015.
SEC. 318. ASSET AND INCOME TEST CLARIFICATION REGARDING
ANCILLARY PERSONAL PROPERTY.
(a) In General.--Subsection (c) of section 856, as amended
by the preceding provisions of this Act, is amended by
redesignating paragraph (9) as paragraph (10) and by
inserting after paragraph (8) the following new paragraph:
``(9) Special rules for certain personal property which is
ancillary to real property.--
``(A) Certain personal property leased in connection with
real property.--Personal property shall be treated as a real
estate asset for purposes of paragraph (4)(A) to the extent
that rents attributable to such personal property are treated
as rents from real property under subsection (d)(1)(C).
``(B) Certain personal property mortgaged in connection
with real property.--In the case of an obligation secured by
a mortgage on both real property and personal property, if
the fair market value of such personal property does not
exceed 15 percent of the total fair market value of all such
property, such obligation shall be treated--
``(i) for purposes of paragraph (3)(B), as an obligation
described therein, and
``(ii) for purposes of paragraph (4)(A), as a real estate
asset.
For purposes of the preceding sentence, the fair market value
of all such property shall be determined in the same manner
as the fair market value of real property is determined for
purposes of apportioning interest income between real
property and personal property under paragraph (3)(B).''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2015.
SEC. 319. HEDGING PROVISIONS.
(a) Modification to Permit the Termination of a Hedging
Transaction Using an Additional Hedging Instrument.--
Subparagraph (G) of section 856(c)(5) is amended by striking
``and'' at the end of clause (i), by striking the period at
the end of clause (ii) and inserting ``, and'', and by adding
at the end the following new clause:
``(iii) if--
``(I) a real estate investment trust enters into one or
more positions described in clause (i) with respect to
indebtedness described in clause (i) or one or more positions
described in clause (ii) with respect to property which
generates income or gain described in paragraph (2) or (3),
``(II) any portion of such indebtedness is extinguished or
any portion of such property is disposed of, and
``(III) in connection with such extinguishment or
disposition, such trust enters into one or more transactions
which would be hedging transactions described in clause (ii)
or (iii) of section 1221(b)(2)(A) with respect to any
position referred to in subclause (I) if such position were
ordinary property,
any income of such trust from any position referred to in
subclause (I) and from any
[[Page H9415]]
transaction referred to in subclause (III) (including gain
from the termination of any such position or transaction)
shall not constitute gross income under paragraphs (2) and
(3) to the extent that such transaction hedges such
position.''.
(b) Identification Requirements.--
(1) In general.--Subparagraph (G) of section 856(c)(5), as
amended by subsection (a), is amended by striking ``and'' at
the end of clause (ii), by striking the period at the end of
clause (iii) and inserting ``, and'', and by adding at the
end the following new clause:
``(iv) clauses (i), (ii), and (iii) shall not apply with
respect to any transaction unless such transaction satisfies
the identification requirement described in section
1221(a)(7) (determined after taking into account any curative
provisions provided under the regulations referred to
therein).''.
(2) Conforming amendments.--Subparagraph (G) of section
856(c)(5) is amended--
(A) by striking ``which is clearly identified pursuant to
section 1221(a)(7)'' in clause (i), and
(B) by striking ``, but only if such transaction is clearly
identified as such before the close of the day on which it
was acquired, originated, or entered into (or such other time
as the Secretary may prescribe)'' in clause (ii).
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2015.
SEC. 320. MODIFICATION OF REIT EARNINGS AND PROFITS
CALCULATION TO AVOID DUPLICATE TAXATION.
(a) Earnings and Profits Not Increased by Amounts Allowed
in Computing Taxable Income in Prior Years.--Section 857(d)
is amended--
(1) by amending paragraph (1) to read as follows:
``(1) In general.--The earnings and profits of a real
estate investment trust for any taxable year (but not its
accumulated earnings) shall not be reduced by any amount
which--
``(A) is not allowable in computing its taxable income for
such taxable year, and
``(B) was not allowable in computing its taxable income for
any prior taxable year.'', and
(2) by adding at the end the following new paragraphs:
``(4) Real estate investment trust.--For purposes of this
subsection, the term `real estate investment trust' includes
a domestic corporation, trust, or association which is a real
estate investment trust determined without regard to the
requirements of subsection (a).
``(5) Special rules for determining earnings and profits
for purposes of the deduction for dividends paid.--For
special rules for determining the earnings and profits of a
real estate investment trust for purposes of the deduction
for dividends paid, see section 562(e)(1).''.
(b) Exception for Purposes of Determining Dividends Paid
Deduction.--Section 562(e)(1), as amended by the preceding
provisions of this Act, is amended by striking ``deduction,
the earnings'' and all that follows and inserting the
following: ``deduction--
``(A) the earnings and profits of such trust for any
taxable year (but not its accumulated earnings) shall be
increased by the amount of gain (if any) on the sale or
exchange of real property which is taken into account in
determining the taxable income of such trust for such taxable
year (and not otherwise taken into account in determining
such earnings and profits), and
``(B) section 857(d)(1) shall be applied without regard to
subparagraph (B) thereof.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2015.
SEC. 321. TREATMENT OF CERTAIN SERVICES PROVIDED BY TAXABLE
REIT SUBSIDIARIES.
(a) Taxable REIT Subsidiaries Treated in Same Manner as
Independent Contractors for Certain Purposes.--
(1) Marketing and development expenses under rental
property safe harbor.--Clause (v) of section 857(b)(6)(C) is
amended by inserting ``or a taxable REIT subsidiary'' before
the period at the end.
(2) Marketing expenses under timber safe harbor.--Clause
(v) of section 857(b)(6)(D) is amended by striking ``, in the
case of a sale on or before the termination date,''.
(3) Foreclosure property grace period.--Subparagraph (C) of
section 856(e)(4) is amended by inserting ``or through a
taxable REIT subsidiary'' after ``receive any income''.
(b) Tax on Redetermined TRS Service Income.--
(1) In general.--Subparagraph (A) of section 857(b)(7) is
amended by striking ``and excess interest'' and inserting
``excess interest, and redetermined TRS service income''.
(2) Redetermined trs service income.--Paragraph (7) of
section 857(b) is amended by redesignating subparagraphs (E)
and (F) as subparagraphs (F) and (G), respectively, and
inserting after subparagraph (D) the following new
subparagraph:
``(E) Redetermined trs service income.--
``(i) In general.--The term `redetermined TRS service
income' means gross income of a taxable REIT subsidiary of a
real estate investment trust attributable to services
provided to, or on behalf of, such trust (less deductions
properly allocable thereto) to the extent the amount of such
income (less such deductions) would (but for subparagraph
(F)) be increased on distribution, apportionment, or
allocation under section 482.
``(ii) Coordination with redetermined rents.--Clause (i)
shall not apply with respect to gross income attributable to
services furnished or rendered to a tenant of the real estate
investment trust (or to deductions properly allocable
thereto).''.
(3) Conforming amendments.--Subparagraphs (B)(i) and (C) of
section 857(b)(7) are each amended by striking ``subparagraph
(E)'' and inserting ``subparagraph (F)''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2015.
SEC. 322. EXCEPTION FROM FIRPTA FOR CERTAIN STOCK OF REITS.
(a) Modifications of Ownership Rules.--
(1) In general.--Section 897 is amended by adding at the
end the following new subsection:
``(k) Special Rules Relating to Real Estate Investment
Trusts.--
``(1) Increase in percentage ownership for exceptions for
persons holding publicly traded stock.--
``(A) Dispositions.--In the case of any disposition of
stock in a real estate investment trust, paragraphs (3) and
(6)(C) of subsection (c) shall each be applied by
substituting `more than 10 percent' for `more than 5
percent'.
``(B) Distributions.--In the case of any distribution from
a real estate investment trust, subsection (h)(1) shall be
applied by substituting `10 percent' for `5 percent'.
``(2) Stock held by qualified shareholders not treated as
usrpi.--
``(A) In general.--Except as provided in subparagraph (B)--
``(i) stock of a real estate investment trust which is held
directly (or indirectly through 1 or more partnerships) by a
qualified shareholder shall not be treated as a United States
real property interest, and
``(ii) notwithstanding subsection (h)(1), any distribution
to a qualified shareholder shall not be treated as gain
recognized from the sale or exchange of a United States real
property interest to the extent the stock of the real estate
investment trust held by such qualified shareholder is not
treated as a United States real property interest under
clause (i).
``(B) Exception.--In the case of a qualified shareholder
with 1 or more applicable investors--
``(i) subparagraph (A)(i) shall not apply to so much of the
stock of a real estate investment trust held by a qualified
shareholder as bears the same ratio to the value of the
interests (other than interests held solely as a creditor)
held by such applicable investors in the qualified
shareholder bears to value of all interests (other than
interests held solely as a creditor) in the qualified
shareholder, and
``(ii) a percentage equal to the ratio determined under
clause (i) of the amounts realized by the qualified
shareholder with respect to any disposition of stock in the
real estate investment trust or with respect to any
distribution from the real estate investment trust
attributable to gain from sales or exchanges of a United
States real property interest shall be treated as amounts
realized from the disposition of United States real property
interests.
``(C) Special rule for certain distributions treated as
sale or exchange.--If a distribution by a real estate
investment trust is treated as a sale or exchange of stock
under section 301(c)(3), 302, or 331 with respect to a
qualified shareholder--
``(i) in the case of an applicable investor, subparagraph
(B) shall apply with respect to such distribution, and
``(ii) in the case of any other person, such distribution
shall be treated under section 857(b)(3)(F) as a dividend
from a real estate investment trust notwithstanding any other
provision of this title.
``(D) Applicable investor.--For purposes of this paragraph,
the term `applicable investor' means, with respect to any
qualified shareholder holding stock in a real estate
investment trust, a person (other than a qualified
shareholder) which--
``(i) holds an interest (other than an interest solely as a
creditor) in such qualified shareholder, and
``(ii) holds more than 10 percent of the stock of such real
estate investment trust (whether or not by reason of the
person's ownership interest in the qualified shareholder).
``(E) Constructive ownership rules.--For purposes of
subparagraphs (B)(i) and (C) and paragraph (4), the
constructive ownership rules under subsection (c)(6)(C) shall
apply.
``(3) Qualified shareholder.--For purposes of this
subsection--
``(A) In general.--The term `qualified shareholder' means a
foreign person which--
``(i)(I) is eligible for benefits of a comprehensive income
tax treaty with the United States which includes an exchange
of information program and the principal class of interests
of which is listed and regularly traded on 1 or more
recognized stock exchanges (as defined in such comprehensive
income tax treaty), or
``(II) is a foreign partnership that is created or
organized under foreign law as a limited partnership in a
jurisdiction that has an agreement for the exchange of
information with respect to taxes with the United States and
has a class of limited partnership units which is regularly
traded on the New York Stock Exchange or Nasdaq Stock Market
and such class of limited partnership units value is greater
than 50 percent of the value of all the partnership units,
``(ii) is a qualified collective investment vehicle, and
[[Page H9416]]
``(iii) maintains records on the identity of each person
who, at any time during the foreign person's taxable year,
holds directly 5 percent or more of the class of interest
described in subclause (I) or (II) of clause (i), as the case
may be.
``(B) Qualified collective investment vehicle.--For
purposes of this subsection, the term `qualified collective
investment vehicle' means a foreign person--
``(i) which, under the comprehensive income tax treaty
described in subparagraph (A)(i), is eligible for a reduced
rate of withholding with respect to ordinary dividends paid
by a real estate investment trust even if such person holds
more than 10 percent of the stock of such real estate
investment trust,
``(ii) which--
``(I) is a publicly traded partnership (as defined in
section 7704(b)) to which subsection (a) of section 7704 does
not apply,
``(II) is a withholding foreign partnership for purposes of
chapters 3, 4, and 61,
``(III) if such foreign partnership were a United States
corporation, would be a United States real property holding
corporation (determined without regard to paragraph (1)) at
any time during the 5-year period ending on the date of
disposition of, or distribution with respect to, such
partnership's interests in a real estate investment trust, or
``(iii) which is designated as a qualified collective
investment vehicle by the Secretary and is either--
``(I) fiscally transparent within the meaning of section
894, or
``(II) required to include dividends in its gross income,
but entitled to a deduction for distributions to persons
holding interests (other than interests solely as a creditor)
in such foreign person.
``(4) Partnership allocations.--
``(A) In general.--For the purposes of this subsection, in
the case of an applicable investor who is a nonresident alien
individual or a foreign corporation and is a partner in a
partnership that is a qualified shareholder, if such
partner's proportionate share of USRPI gain for the taxable
year exceeds such partner's distributive share of USRPI gain
for the taxable year, then
``(i) such partner's distributive share of the amount of
gain taken into account under subsection (a)(1) by the
partner for the taxable year (determined without regard to
this paragraph) shall be increased by the amount of such
excess, and
``(ii) such partner's distributive share of items of income
or gain for the taxable year that are not treated as gain
taken into account under subsection (a)(1) (determined
without regard to this paragraph) shall be decreased (but not
below zero) by the amount of such excess.
``(B) USRPI gain.--For the purposes of this paragraph, the
term `USRPI gain' means the excess (if any) of--
``(i) the sum of--
``(I) any gain recognized from the disposition of a United
States real property interest, and
``(II) any distribution by a real estate investment trust
that is treated as gain recognized from the sale or exchange
of a United States real property interest, over
``(ii) any loss recognized from the disposition of a United
States real property interest.
``(C) Proportionate share of usrpi gain.--For purposes of
this paragraph, an applicable investor's proportionate share
of USRPI gain shall be determined on the basis of such
investor's share of partnership items of income or gain
(excluding gain allocated under section 704(c)), whichever
results in the largest proportionate share. If the investor's
share of partnership items of income or gain (excluding gain
allocated under section 704(c)) may vary during the period
such investor is a partner in the partnership, such share
shall be the highest share such investor may receive.''.
(2) Conforming amendments.--
(A) Section 897(c)(1)(A) is amended by inserting ``or
subsection (k)'' after ``subparagraph (B)'' in the matter
preceding clause (i).
(B) Section 857(b)(3)(F) is amended by inserting ``or
subparagraph (A)(ii) or (C) of section 897(k)(2)'' after
``897(h)(1)''.
(b) Determination of Domestic Control.--
(1) Special ownership rules.--
(A) In general.--Section 897(h)(4) is amended by adding at
the end the following new subparagraph:
``(E) Special ownership rules.--For purposes of determining
the holder of stock under subparagraphs (B) and (C)--
``(i) in the case of any class of stock of the qualified
investment entity which is regularly traded on an established
securities market in the United States, a person holding less
than 5 percent of such class of stock at all times during the
testing period shall be treated as a United States person
unless the qualified investment entity has actual knowledge
that such person is not a United States person,
``(ii) any stock in the qualified investment entity held by
another qualified investment entity--
``(I) any class of stock of which is regularly traded on an
established securities market, or
``(II) which is a regulated investment company which issues
redeemable securities (within the meaning of section 2 of the
Investment Company Act of 1940),
shall be treated as held by a foreign person, except that if
such other qualified investment entity is domestically
controlled (determined after application of this
subparagraph), such stock shall be treated as held by a
United States person, and
``(iii) any stock in the qualified investment entity held
by any other qualified investment entity not described in
subclause (I) or (II) of clause (ii) shall only be treated as
held by a United States person in proportion to the stock of
such other qualified investment entity which is (or is
treated under clause (ii) or (iii) as) held by a United
States person.''.
(B) Conforming amendment.--The heading for paragraph (4) of
section 897(h) is amended by inserting ``and special rules''
after ``Definitions''.
(2) Technical amendment.--Clause (ii) of section
897(h)(4)(A) is amended by inserting ``and for purposes of
determining whether a real estate investment trust is a
domestically controlled qualified investment entity under
this subsection'' after ``real estate investment trust''.
(c) Effective Dates.--
(1) In general.--The amendments made by subsection (a)
shall take effect on the date of enactment and shall apply
to--
(A) any disposition on and after the date of the enactment
of this Act, and
(B) any distribution by a real estate investment trust on
or after the date of the enactment of this Act which is
treated as a deduction for a taxable year of such trust
ending after such date.
(2) Determination of domestic control.--The amendments made
by subsection (b)(1) shall take effect on the date of the
enactment of this Act.
(3) Technical amendment.--The amendment made by subsection
(b)(2) shall take effect on January 1, 2015.
SEC. 323. EXCEPTION FOR INTERESTS HELD BY FOREIGN RETIREMENT
OR PENSION FUNDS.
(a) In General.--Section 897, as amended by the preceding
provisions of this Act, is amended by adding at the end the
following new subsection:
``(l) Exception for Interests Held by Foreign Pension
Funds.--
``(1) In general.--This section shall not apply to any
United States real property interest held directly (or
indirectly through 1 or more partnerships) by, or to any
distribution received from a real estate investment trust
by--
``(A) a qualified foreign pension fund, or
``(B) any entity all of the interests of which are held by
a qualified foreign pension fund.
``(2) Qualified foreign pension fund.--For purposes of this
subsection, the term `qualified foreign pension fund' means
any trust, corporation, or other organization or
arrangement--
``(A) which is created or organized under the law of a
country other than the United States,
``(B) which is established to provide retirement or pension
benefits to participants or beneficiaries that are current or
former employees (or persons designated by such employees) of
one or more employers in consideration for services rendered,
``(C) which does not have a single participant or
beneficiary with a right to more than five percent of its
assets or income,
``(D) which is subject to government regulation and
provides annual information reporting about its beneficiaries
to the relevant tax authorities in the country in which it is
established or operates, and
``(E) with respect to which, under the laws of the country
in which it is established or operates--
``(i) contributions to such trust, corporation,
organization, or arrangement which would otherwise be subject
to tax under such laws are deductible or excluded from the
gross income of such entity or taxed at a reduced rate, or
``(ii) taxation of any investment income of such trust,
corporation, organization or arrangement is deferred or such
income is taxed at a reduced rate.
``(3) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
the purposes of this subsection.''.
(b) Exemption From Withholding.--Section 1445(f)(3) is
amended by striking ``any person'' and all that follows and
inserting the following: ``any person other than--
``(A) a United States person, and
``(B) except as otherwise provided by the Secretary, an
entity with respect to which section 897 does not apply by
reason of subsection (l) thereof.''.
(c) Effective Date.--The amendments made by this section
shall apply to dispositions and distributions after the date
of the enactment of this Act.
SEC. 324. INCREASE IN RATE OF WITHHOLDING OF TAX ON
DISPOSITIONS OF UNITED STATES REAL PROPERTY
INTERESTS.
(a) In General.--Subsections (a), (e)(3), (e)(4), and
(e)(5) of section 1445 are each amended by striking ``10
percent'' and inserting ``15 percent''.
(b) Exception for Certain Residences.--Section 1445(c) is
amended by adding at the end the following new paragraph:
``(4) Reduced rate of withholding for residence where
amount realized does not exceed $1,000,000.--In the case of a
disposition--
``(A) of property which is acquired by the transferee for
use by the transferee as a residence,
[[Page H9417]]
``(B) with respect to which the amount realized for such
property does not exceed $1,000,000, and
``(C) to which subsection (b)(5) does not apply,
subsection (a) shall be applied by substituting `10 percent'
for `15 percent'.''.
(c) Effective Date.--The amendments made by this section
shall apply to dispositions after the date which is 60 days
after the date of the enactment of this Act.
SEC. 325. INTERESTS IN RICS AND REITS NOT EXCLUDED FROM
DEFINITION OF UNITED STATES REAL PROPERTY
INTERESTS.
(a) In General.--Section 897(c)(1)(B) is amended by
striking ``and'' at the end of clause (i), by striking the
period at the end of clause (ii)(II) and inserting ``, and'',
and by adding at the end the following new clause:
``(iii) neither such corporation nor any predecessor of
such corporation was a regulated investment company or a real
estate investment trust at any time during the shorter of the
periods described in subparagraph (A)(ii).''.
(b) Effective Date.--The amendment made by this section
shall apply to dispositions on or after the date of the
enactment of this Act.
SEC. 326. DIVIDENDS DERIVED FROM RICS AND REITS INELIGIBLE
FOR DEDUCTION FOR UNITED STATES SOURCE PORTION
OF DIVIDENDS FROM CERTAIN FOREIGN CORPORATIONS.
(a) In General.--Section 245(a) is amended by adding at the
end the following new paragraph:
``(12) Dividends derived from rics and reits ineligible for
deduction.--Regulated investment companies and real estate
investment trusts shall not be treated as domestic
corporations for purposes of paragraph (5)(B).''.
(b) Effective Date.--The amendment made by this section
shall apply to dividends received from regulated investment
companies and real estate investment trusts on or after the
date of the enactment of this Act.
(c) No Inference.--Nothing contained in this section or the
amendments made by this section shall be construed to create
any inference with respect to the proper treatment under
section 245 of the Internal Revenue Code of 1986 of dividends
received from regulated investment companies or real estate
investment trusts before the date of the enactment of this
Act.
Subtitle C--Additional Provisions
SEC. 331. DEDUCTIBILITY OF CHARITABLE CONTRIBUTIONS TO
AGRICULTURAL RESEARCH ORGANIZATIONS.
(a) In General.--Subparagraph (A) of section 170(b)(1) is
amended by striking ``or'' at the end of clause (vii), by
striking the comma at the end of clause (viii) and inserting
``, or'', and by inserting after clause (viii) the following
new clause:
``(ix) an agricultural research organization directly
engaged in the continuous active conduct of agricultural
research (as defined in section 1404 of the Agricultural
Research, Extension, and Teaching Policy Act of 1977) in
conjunction with a land-grant college or university (as
defined in such section) or a non-land grant college of
agriculture (as defined in such section), and during the
calendar year in which the contribution is made such
organization is committed to spend such contribution for such
research before January 1 of the fifth calendar year which
begins after the date such contribution is made,''.
(b) Expenditures To Influence Legislation.--Paragraph (4)
of section 501(h) is amended by redesignating subparagraphs
(E) and (F) as subparagraphs (F) and (G), respectively, and
by inserting after subparagraph (D) the following new
subparagraph:
``(E) section 170(b)(1)(A)(ix) (relating to agricultural
research organizations),''.
(c) Effective Date.--The amendments made by this section
shall apply to contributions made on and after the date of
the enactment of this Act.
SEC. 332. REMOVAL OF BOND REQUIREMENTS AND EXTENDING FILING
PERIODS FOR CERTAIN TAXPAYERS WITH LIMITED
EXCISE TAX LIABILITY.
(a) Filing Requirements.--Paragraph (4) of section 5061(d)
of the Internal Revenue Code of 1986 is amended--
(1) in subparagraph (A)--
(A) by striking ``In the case of'' and inserting the
following:
``(i) More than $1,000 and not more than $50,000 in
taxes.--Except as provided in clause (ii), in the case of'',
(B) by striking ``under bond for deferred payment'', and
(C) by adding at the end the following new clause:
``(ii) Not more than $1,000 in taxes.--In the case of any
taxpayer who reasonably expects to be liable for not more
than $1,000 in taxes imposed with respect to distilled
spirits, wines, and beer under subparts A, C, and D and
section 7652 for the calendar year and who was liable for not
more than $1,000 in such taxes in the preceding calendar
year, the last day for the payment of tax on withdrawals,
removals, and entries (and articles brought into the United
States from Puerto Rico) shall be the 14th day after the last
day of the calendar year.'', and
(2) in subparagraph (B)--
(A) by striking ``Subparagraph (A)'' and inserting the
following:
``(i) Exceeds $50,000 limit.--Subparagraph (A)(i)'', and
(B) by adding at the end the following new clause:
``(ii) Exceeds $1,000 limit.--Subparagraph (A)(ii) shall
not apply to any taxpayer for any portion of the calendar
year following the first date on which the aggregate amount
of tax due under subparts A, C, and D and section 7652 from
such taxpayer during such calendar year exceeds $1,000, and
any tax under such subparts which has not been paid on such
date shall be due on the 14th day after the last day of the
calendar quarter in which such date occurs.''.
(b) Bond Requirements.--
(1) In general.--Section 5551 of such Code is amended--
(A) in subsection (a), by striking ``No individual'' and
inserting ``Except as provided under subsection (d), no
individual'', and
(B) by adding at the end the following new subsection:
``(d) Removal of Bond Requirements.--
``(1) In general.--During any period to which subparagraph
(A) of section 5061(d)(4) applies to a taxpayer (determined
after application of subparagraph (B) thereof), such taxpayer
shall not be required to furnish any bond covering operations
or withdrawals of distilled spirits or wines for
nonindustrial use or of beer.
``(2) Satisfaction of bond requirements.--Any taxpayer for
any period described in paragraph (1) shall be treated as if
sufficient bond has been furnished for purposes of covering
operations and withdrawals of distilled spirits or wines for
nonindustrial use or of beer for purposes of any requirements
relating to bonds under this chapter.''.
(2) Conforming amendments.--
(A) Bonds for distilled spirits plants.--Section 5173(a) of
such Code is amended--
(i) in paragraph (1), by striking ``No person'' and
inserting ``Except as provided under section 5551(d), no
person'', and
(ii) in paragraph (2), by striking ``No distilled spirits''
and inserting ``Except as provided under section 5551(d), no
distilled spirits''.
(B) Bonded wine cellars.--Section 5351 of such Code is
amended--
(i) by striking ``Any person'' and inserting the following:
``(a) In General.--Any person'',
(ii) by inserting ``, except as provided under section
5551(d),'' before ``file bond'',
(iii) by striking ``Such premises shall'' and all that
follows through the period, and
(iv) by adding at the end the following new subsection:
``(b) Definitions.--For purposes of this chapter--
``(1) Bonded wine cellar.--The term `bonded wine cellar'
means any premises described in subsection (a), including any
such premises established by a taxpayer described in section
5551(d).
``(2) Bonded winery.--At the discretion of the Secretary,
any bonded wine cellar that engages in production operations
may be designated as a `bonded winery'.''.
(C) Bonds for breweries.--Section 5401 of such Code is
amended by adding at the end the following new subsection:
``(c) Exception From Bond Requirements for Certain
Breweries.--Subsection (b) shall not apply to any taxpayer
for any period described in section 5551(d).''.
(c) Effective Date.--The amendments made by this section
shall apply to any calendar quarters beginning more than 1
year after the date of the enactment of this Act.
SEC. 333. MODIFICATIONS TO ALTERNATIVE TAX FOR CERTAIN SMALL
INSURANCE COMPANIES.
(a) Additional Requirement for Companies to Which
Alternative Tax Applies.--
(1) Added requirement.--
(A) In general.--Subparagraph (A) of section 831(b)(2) is
amended--
(i) by striking ``(including interinsurers and reciprocal
underwriters)'', and
(ii) by striking ``and'' at the end of clause (i), by
redesignating clause (ii) as clause (iii), and by inserting
after clause (i) the following new clause:
``(ii) such company meets the diversification requirements
of subparagraph (B), and''.
(B) Diversification requirement.--Paragraph (2) of section
831(b) is amended by redesignating subparagraphs (B) as
subparagraph (C) and by inserting after subparagraph (A) the
following new subparagraph:
``(B) Diversification requirements.--
``(i) In general.--An insurance company meets the
requirements of this subparagraph if--
``(I) no more than 20 percent of the net written premiums
(or, if greater, direct written premiums) of such company for
the taxable year is attributable to any one policyholder, or
``(II) such insurance company does not meet the requirement
of subclause (I) and no person who holds (directly or
indirectly) an interest in such insurance company is a
specified holder who holds (directly or indirectly) aggregate
interests in such insurance company which constitute a
percentage of the entire interests in such insurance company
which is more than a de minimis percentage higher than the
percentage of interests in the specified assets with respect
to such insurance company held (directly or indirectly) by
such specified holder.
``(ii) Definitions.--For purposes of clause (i)(II)--
``(I) Specified holder.--The term `specified holder' means,
with respect to any insurance company, any individual who
holds (directly or indirectly) an interest in such insurance
company and who is a spouse or lineal descendant (including
by adoption) of an individual who holds an interest (directly
[[Page H9418]]
or indirectly) in the specified assets with respect to such
insurance company.
``(II) Specified assets.--The term `specified assets'
means, with respect to any insurance company, the trades or
businesses, rights, or assets with respect to which the net
written premiums (or direct written premiums) of such
insurance company are paid.
``(III) Indirect interest.--An indirect interest includes
any interest held through a trust, estate, partnership, or
corporation.
``(IV) De minimis.--Except as otherwise provided by the
Secretary in regulations or other guidance, 2 percentage
points or less shall be treated as de minimis.''.
(C) Conforming amendments.--The second sentence section
831(b)(2)(A) is amended--
(i) by striking ``clause (ii)'' and inserting ``clause
(iii)'', and
(ii) by striking ``clause (i)'' and inserting ``clauses (i)
and (ii)''.
(2) Treatment of related policyholders.--Clause (i) of
section 831(b)(2)(C), as redesignated by paragraph (1)(B), is
amended--
(A) by striking ``For purposes of subparagraph (A), in
determining'' and inserting ``For purposes of this
paragraph--
``(I) in determining'',
(B) by striking the period at the end and inserting ``,
and'', and
(C) by adding at the end the following new subclause:
``(II) in determining the attribution of premiums to any
policyholder under subparagraph (B)(i), all policyholders
which are related (within the meaning of section 267(b) or
707(b)) or are members of the same controlled group shall be
treated as one policyholder.''.
(3) Reporting.--Section 831 is amended by redesignating
subsection (d) as subsection (e) and by inserting after
subsection (c) the following new subsection:
``(d) Reporting.--Every insurance company for which an
election is in effect under subsection (b) for any taxable
year shall furnish to the Secretary at such time and in such
manner as the Secretary shall prescribe such information for
such taxable year as the Secretary shall require with respect
to the requirements of subsection (b)(2)(A)(ii).''.
(b) Increase in Limitation on Premiums.--
(1) In general.--Clause (i) of section 831(b)(2)(A) is
amended by striking ``$1,200,000'' and inserting
``$2,200,000''.
(2) Inflation adjustment.--Paragraph (2) of section 831(b),
as amended by subsection (a)(1)(B), is amended by adding at
the end the following new subparagraph:
``(D) Inflation adjustment.--In the case of any taxable
year beginning in a calendar year after 2015, the dollar
amount set forth in subparagraph (A)(i) shall be increased by
an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment determined under
section 1(f)(3) for such calendar year by substituting
`calendar year 2013' for `calendar year 1992' in subparagraph
(B) thereof.
If the amount as adjusted under the preceding sentence is not
a multiple of $50,000, such amount shall be rounded to the
next lowest multiple of $50,000.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2016.
SEC. 334. TREATMENT OF TIMBER GAINS.
(a) In General.--Section 1201(b) is amended to read as
follows:
``(b) Special Rate for Qualified Timber Gains.--
``(1) In general.--If, for any taxable year beginning in
2016, a corporation has both a net capital gain and qualified
timber gain--
``(A) subsection (a) shall apply to such corporation for
the taxable year without regard to whether the applicable tax
rate exceeds 35 percent, and
``(B) the tax computed under subsection (a)(2) shall be
equal to the sum of--
``(i) 23.8 percent of the least of--
``(I) qualified timber gain,
``(II) net capital gain, or
``(III) taxable income, plus
``(ii) 35 percent of the excess (if any) of taxable income
over the sum of the amounts for which a tax was determined
under subsection (a)(1) and clause (i).
``(2) Qualified timber gain.--For purposes of this section,
the term `qualified timber gain' means, with respect to any
taxpayer for any taxable year, the excess (if any) of--
``(A) the sum of the taxpayer's gains described in
subsections (a) and (b) of section 631 for such year, over
``(B) the sum of the taxpayer's losses described in such
subsections for such year.
For purposes of subparagraphs (A) and (B), only timber held
more than 15 years shall be taken into account.''.
(b) Conforming Amendment.--Section 55(b) is amended by
striking paragraph (4).
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2015.
SEC. 335. MODIFICATION OF DEFINITION OF HARD CIDER.
(a) In General.--Section 5041 of the Internal Revenue Code
of 1986 is amended--
(1) in paragraph (6) of subsection (b), by striking ``which
is a still wine'' and all that follows through ``alcohol by
volume'', and
(2) by adding at the end the following new subsection:
``(g) Hard Cider.--For purposes of subsection (b)(6), the
term `hard cider' means a wine--
``(1) containing not more than 0.64 gram of carbon dioxide
per hundred milliliters of wine, except that the Secretary
may by regulations prescribe such tolerances to this
limitation as may be reasonably necessary in good commercial
practice,
``(2) which is derived primarily--
``(A) from apples or pears, or
``(B) from--
``(i) apple juice concentrate or pear juice concentrate,
and
``(ii) water,
``(3) which contains no fruit product or fruit flavoring
other than apple or pear, and
``(4) which contains at least one-half of 1 percent and
less than 8.5 percent alcohol by volume.''.
(b) Effective Date.--The amendments made by this section
shall apply to hard cider removed during calendar years
beginning after December 31, 2016.
SEC. 336. CHURCH PLAN CLARIFICATION.
(a) Application of Controlled Group Rules to Church
Plans.--
(1) In general.--Section 414(c) is amended--
(A) by striking ``For purposes'' and inserting the
following:
``(1) In general.--Except as provided in paragraph (2), for
purposes'', and
(B) by adding at the end the following new paragraph:
``(2) Special rules relating to church plans.--
``(A) General rule.--Except as provided in subparagraphs
(B) and (C), for purposes of this subsection and subsection
(m), an organization that is otherwise eligible to
participate in a church plan shall not be aggregated with
another such organization and treated as a single employer
with such other organization for a plan year beginning in a
taxable year unless--
``(i) one such organization provides (directly or
indirectly) at least 80 percent of the operating funds for
the other organization during the preceding taxable year of
the recipient organization, and
``(ii) there is a degree of common management or
supervision between the organizations such that the
organization providing the operating funds is directly
involved in the day-to-day operations of the other
organization.
``(B) Nonqualified church-controlled organizations.--
Notwithstanding subparagraph (A), for purposes of this
subsection and subsection (m), an organization that is a
nonqualified church-controlled organization shall be
aggregated with 1 or more other nonqualified church-
controlled organizations, or with an organization that is not
exempt from tax under section 501, and treated as a single
employer with such other organization, if at least 80 percent
of the directors or trustees of such other organization are
either representatives of, or directly or indirectly
controlled by, such nonqualified church-controlled
organization. For purposes of this subparagraph, the term
`nonqualified church-controlled organization' means a church-
controlled tax-exempt organization described in section
501(c)(3) that is not a qualified church-controlled
organization (as defined in section 3121(w)(3)(B)).
``(C) Permissive aggregation among church-related
organizations.--The church or convention or association of
churches with which an organization described in subparagraph
(A) is associated (within the meaning of subsection
(e)(3)(D)), or an organization designated by such church or
convention or association of churches, may elect to treat
such organizations as a single employer for a plan year. Such
election, once made, shall apply to all succeeding plan years
unless revoked with notice provided to the Secretary in such
manner as the Secretary shall prescribe.
``(D) Permissive disaggregation of church-related
organizations.--For purposes of subparagraph (A), in the case
of a church plan, an employer may elect to treat churches (as
defined in section 403(b)(12)(B)) separately from entities
that are not churches (as so defined), without regard to
whether such entities maintain separate church plans. Such
election, once made, shall apply to all succeeding plan years
unless revoked with notice provided to the Secretary in such
manner as the Secretary shall prescribe.''.
(2) Clarification relating to application of anti-abuse
rule.--The rule of 26 CFR 1.414(c)-5(f) shall continue to
apply to each paragraph of section 414(c) of the Internal
Revenue Code of 1986, as amended by paragraph (1).
(3) Effective date.--The amendments made by paragraph (1)
shall apply to years beginning before, on, or after the date
of the enactment of this Act.
(b) Application of Contribution and Funding Limitations to
403(b) Grandfathered Defined Benefit Plans.--
(1) In general.--Section 251(e)(5) of the Tax Equity and
Fiscal Responsibility Act of 1982 (Public Law 97-248), is
amended--
(A) by striking ``403(b)(2)'' and inserting ``403(b)'', and
(B) by inserting before the period at the end the
following: ``, and shall be subject to the applicable
limitations of section 415(b) of such Code as if it were a
defined benefit plan under section 401(a) of such Code (and
not to the limitations of section 415(c) of such Code).''.
(2) Effective date.--The amendments made by this subsection
shall apply to years beginning before, on, or after the date
of the enactment of this Act.
(c) Automatic Enrollment by Church Plans.--
[[Page H9419]]
(1) In general.--This subsection shall supersede any law of
a State that relates to wage, salary, or payroll payment,
collection, deduction, garnishment, assignment, or
withholding which would directly or indirectly prohibit or
restrict the inclusion in any church plan (as defined in
section 414(e) of the Internal Revenue Code of 1986) of an
automatic contribution arrangement.
(2) Definition of automatic contribution arrangement.--For
purposes of this subsection, the term ``automatic
contribution arrangement'' means an arrangement--
(A) under which a participant may elect to have the plan
sponsor or the employer make payments as contributions under
the plan on behalf of the participant, or to the participant
directly in cash,
(B) under which a participant is treated as having elected
to have the plan sponsor or the employer make such
contributions in an amount equal to a uniform percentage of
compensation provided under the plan until the participant
specifically elects not to have such contributions made (or
specifically elects to have such contributions made at a
different percentage), and
(C) under which the notice and election requirements of
paragraph (3), and the investment requirements of paragraph
(4), are satisfied.
(3) Notice requirements.--
(A) In general.--The plan sponsor of, or plan administrator
or employer maintaining, an automatic contribution
arrangement shall, within a reasonable period before the
first day of each plan year, provide to each participant to
whom the arrangement applies for such plan year notice of the
participant's rights and obligations under the arrangement
which--
(i) is sufficiently accurate and comprehensive to apprise
the participant of such rights and obligations, and
(ii) is written in a manner calculated to be understood by
the average participant to whom the arrangement applies.
(B) Election requirements.--A notice shall not be treated
as meeting the requirements of subparagraph (A) with respect
to a participant unless--
(i) the notice includes an explanation of the participant's
right under the arrangement not to have elective
contributions made on the participant's behalf (or to elect
to have such contributions made at a different percentage),
(ii) the participant has a reasonable period of time, after
receipt of the explanation described in clause (i) and before
the first elective contribution is made, to make such
election, and
(iii) the notice explains how contributions made under the
arrangement will be invested in the absence of any investment
election by the participant.
(4) Default investment.--If no affirmative investment
election has been made with respect to any automatic
contribution arrangement, contributions to such arrangement
shall be invested in a default investment selected with the
care, skill, prudence, and diligence that a prudent person
selecting an investment option would use.
(5) Effective date.--This subsection shall take effect on
the date of the enactment of this Act.
(d) Allow Certain Plan Transfers and Mergers.--
(1) In general.--Section 414 is amended by adding at the
end the following new subsection:
``(z) Certain Plan Transfers and Mergers.--
``(1) In general.--Under rules prescribed by the Secretary,
except as provided in paragraph (2), no amount shall be
includible in gross income by reason of--
``(A) a transfer of all or a portion of the accrued benefit
of a participant or beneficiary, whether or not vested, from
a church plan that is a plan described in section 401(a) or
an annuity contract described in section 403(b) to an annuity
contract described in section 403(b), if such plan and
annuity contract are both maintained by the same church or
convention or association of churches,
``(B) a transfer of all or a portion of the accrued benefit
of a participant or beneficiary, whether or not vested, from
an annuity contract described in section 403(b) to a church
plan that is a plan described in section 401(a), if such plan
and annuity contract are both maintained by the same church
or convention or association of churches, or
``(C) a merger of a church plan that is a plan described in
section 401(a), or an annuity contract described in section
403(b), with an annuity contract described in section 403(b),
if such plan and annuity contract are both maintained by the
same church or convention or association of churches.
``(2) Limitation.--Paragraph (1) shall not apply to a
transfer or merger unless the participant's or beneficiary's
total accrued benefit immediately after the transfer or
merger is equal to or greater than the participant's or
beneficiary's total accrued benefit immediately before the
transfer or merger, and such total accrued benefit is
nonforfeitable after the transfer or merger.
``(3) Qualification.--A plan or annuity contract shall not
fail to be considered to be described in section 401(a) or
403(b) merely because such plan or annuity contract engages
in a transfer or merger described in this subsection.
``(4) Definitions.--For purposes of this subsection--
``(A) Church or convention or association of churches.--The
term `church or convention or association of churches'
includes an organization described in subparagraph (A) or
(B)(ii) of subsection (e)(3).
``(B) Annuity contract.--The term `annuity contract'
includes a custodial account described in section 403(b)(7)
and a retirement income account described in section
403(b)(9).
``(C) Accrued benefit.--The term `accrued benefit' means--
``(i) in the case of a defined benefit plan, the employee's
accrued benefit determined under the plan, and
``(ii) in the case of a plan other than a defined benefit
plan, the balance of the employee's account under the
plan.''.
(2) Effective date.--The amendment made by this subsection
shall apply to transfers or mergers occurring after the date
of the enactment of this Act.
(e) Investments by Church Plans in Collective Trusts.--
(1) In general.--In the case of--
(A) a church plan (as defined in section 414(e) of the
Internal Revenue Code of 1986), including a plan described in
section 401(a) of such Code and a retirement income account
described in section 403(b)(9) of such Code, and
(B) an organization described in section 414(e)(3)(A) of
such Code the principal purpose or function of which is the
administration of such a plan or account,
the assets of such plan, account, or organization (including
any assets otherwise permitted to be commingled for
investment purposes with the assets of such a plan, account,
or organization) may be invested in a group trust otherwise
described in Internal Revenue Service Revenue Ruling 81-100
(as modified by Internal Revenue Service Revenue Rulings
2004-67, 2011-1, and 2014-24), or any subsequent revenue
ruling that supersedes or modifies such revenue ruling,
without adversely affecting the tax status of the group
trust, such plan, account, or organization, or any other plan
or trust that invests in the group trust.
(2) Effective date.--This subsection shall apply to
investments made after the date of the enactment of this Act.
Subtitle D--Revenue Provisions
SEC. 341. UPDATED ASHRAE STANDARDS FOR ENERGY EFFICIENT
COMMERCIAL BUILDINGS DEDUCTION.
(a) In General.--Paragraph (1) of section 179D(c) is
amended by striking ``Standard 90.1-2001'' each place it
appears and inserting ``Standard 90.1-2007''.
(b) Conforming Amendments.--
(1) Paragraph (2) of section 179D(c) is amended to read as
follows:
``(2) Standard 90.1-2007.--The term `Standard 90.1-2007'
means Standard 90.1-2007 of the American Society of Heating,
Refrigerating, and Air Conditioning Engineers and the
Illuminating Engineering Society of North America (as in
effect on the day before the date of the adoption of Standard
90.1-2010 of such Societies).''.
(2) Subsection (f) of section 179D is amended by striking
``Standard 90.1-2001'' each place it appears in paragraphs
(1) and (2)(C)(i) and inserting ``Standard 90.1-2007''.
(3) Paragraph (1) of section 179D(f) is amended--
(A) by striking ``Table 9.3.1.1'' and inserting ``Table
9.5.1'', and
(B) by striking ``Table 9.3.1.2'' and inserting ``Table
9.6.1''.
(c) Effective Date.--The amendments made by this subsection
shall apply to property placed in service after December 31,
2015.
SEC. 342. EXCISE TAX CREDIT EQUIVALENCY FOR LIQUIFIED
PETROLEUM GAS AND LIQUIFIED NATURAL GAS.
(a) In General.--Section 6426 is amended by adding at the
end the following new subsection:
``(j) Energy Equivalency Determinations for Liquefied
Petroleum Gas and Liquefied Natural Gas.--For purposes of
determining any credit under this section, any reference to
the number of gallons of an alternative fuel or the gasoline
gallon equivalent of such a fuel shall be treated as a
reference to--
``(1) in the case of liquefied petroleum gas, the energy
equivalent of a gallon of gasoline, as defined in section
4041(a)(2)(C), and
``(2) in the case of liquefied natural gas, the energy
equivalent of a gallon of diesel, as defined in section
4041(a)(2)(D).''.
(b) Effective Date.--The amendments made by this section
shall apply to fuel sold or used after December 31, 2015.
SEC. 343. EXCLUSION FROM GROSS INCOME OF CERTAIN CLEAN COAL
POWER GRANTS TO NON-CORPORATE TAXPAYERS.
(a) General Rule.--In the case of an eligible taxpayer
other than a corporation, gross income for purposes of the
Internal Revenue Code of 1986 shall not include any amount
received under section 402 of the Energy Policy Act of 2005.
(b) Reduction in Basis.--The basis of any property subject
to the allowance for depreciation under the Internal Revenue
Code of 1986 which is acquired with any amount to which
subsection (a) applies during the 12-month period beginning
on the day such amount is received shall be reduced by an
amount equal to such amount. The excess (if any) of such
amount over the amount of the reduction under the preceding
sentence shall be applied to the reduction (as of the last
day of the period specified in the preceding sentence) of the
basis of any other property held by the taxpayer. The
particular properties to which the reductions required by
[[Page H9420]]
this subsection are allocated shall be determined by the
Secretary of the Treasury (or the Secretary's delegate) under
regulations similar to the regulations under section
362(c)(2) of such Code.
(c) Limitation to Amounts Which Would Be Contributions to
Capital.--Subsection (a) shall not apply to any amount unless
such amount, if received by a corporation, would be excluded
from gross income under section 118 of the Internal Revenue
Code of 1986.
(d) Eligible Taxpayer.--For purposes of this section, with
respect to any amount received under section 402 of the
Energy Policy Act of 2005, the term ``eligible taxpayer''
means a taxpayer that makes a payment to the Secretary of the
Treasury (or the Secretary's delegate) equal to 1.18 percent
of the amount so received. Such payment shall be made at such
time and in such manner as such Secretary (or the Secretary's
delegate) shall prescribe. In the case of a partnership, such
Secretary (or the Secretary's delegate) shall prescribe
regulations to determine the allocation of such payment
amount among the partners.
(e) Effective Date.--This section shall apply to amounts
received under section 402 of the Energy Policy Act of 2005
in taxable years beginning after December 31, 2011.
SEC. 344. CLARIFICATION OF VALUATION RULE FOR EARLY
TERMINATION OF CERTAIN CHARITABLE REMAINDER
UNITRUSTS.
(a) In General.--Section 664(e) is amended--
(1) by adding at the end the following: ``In the case of
the early termination of a trust which is a charitable
remainder unitrust by reason of subsection (d)(3), the
valuation of interests in such trust for purposes of this
section shall be made under rules similar to the rules of the
preceding sentence.'', and
(2) by striking ``for Purposes of Charitable Contribution''
in the heading thereof and inserting ``of Interests''.
(b) Effective Date.--The amendment made by this section
shall apply to terminations of trusts occurring after the
date of the enactment of this Act.
SEC. 345. PREVENTION OF TRANSFER OF CERTAIN LOSSES FROM TAX
INDIFFERENT PARTIES.
(a) In General.--Section 267(d) is amended to read as
follows:
``(d) Amount of Gain Where Loss Previously Disallowed.--
``(1) In general.--If--
``(A) in the case of a sale or exchange of property to the
taxpayer a loss sustained by the transferor is not allowable
to the transferor as a deduction by reason of subsection
(a)(1), and
``(B) the taxpayer sells or otherwise disposes of such
property (or of other property the basis of which in the
taxpayer's hands is determined directly or indirectly by
reference to such property) at a gain,
then such gain shall be recognized only to the extent that it
exceeds so much of such loss as is properly allocable to the
property sold or otherwise disposed of by the taxpayer.
``(2) Exception for wash sales.--Paragraph (1) shall not
apply if the loss sustained by the transferor is not
allowable to the transferor as a deduction by reason of
section 1091 (relating to wash sales).
``(3) Exception for transfers from tax indifferent
parties.--Paragraph (1) shall not apply to the extent any
loss sustained by the transferor (if allowed) would not be
taken into account in determining a tax imposed under section
1 or 11 or a tax computed as provided by either of such
sections.''.
(b) Effective Date.--The amendment made by this section
shall apply to sales and other dispositions of property
acquired after December 31, 2015, by the taxpayer in a sale
or exchange to which section 267(a)(1) of the Internal
Revenue Code of 1986 applied.
SEC. 346. TREATMENT OF CERTAIN PERSONS AS EMPLOYERS WITH
RESPECT TO MOTION PICTURE PROJECTS.
(a) In General.--Chapter 25 (relating to general provisions
relating to employment taxes) is amended by adding at the end
the following new section:
``SEC. 3512. TREATMENT OF CERTAIN PERSONS AS EMPLOYERS WITH
RESPECT TO MOTION PICTURE PROJECTS.
``(a) In General.--For purposes of sections 3121(a)(1) and
3306(b)(1), remuneration paid to a motion picture project
worker by a motion picture project employer during a calendar
year shall be treated as remuneration paid with respect to
employment of such worker by such employer during the
calendar year. The identity of such employer for such
purposes shall be determined as set forth in this section and
without regard to the usual common law rules applicable in
determining the employer-employee relationship.
``(b) Definitions.--For purposes of this section--
``(1) Motion picture project employer.--The term `motion
picture project employer' means any person if--
``(A) such person (directly or through affiliates)--
``(i) is a party to a written contract covering the
services of motion picture project workers with respect to
motion picture projects in the course of a client's trade or
business,
``(ii) is contractually obligated to pay remuneration to
the motion picture project workers without regard to payment
or reimbursement by any other person,
``(iii) controls the payment (within the meaning of section
3401(d)(1)) of remuneration to the motion picture project
workers and pays such remuneration from its own account or
accounts,
``(iv) is a signatory to one or more collective bargaining
agreements with a labor organization (as defined in 29 U.S.C.
152(5)) that represents motion picture project workers, and
``(v) has treated substantially all motion picture project
workers that such person pays as employees and not as
independent contractors during such calendar year for
purposes of determining employment taxes under this subtitle,
and
``(B) at least 80 percent of all remuneration (to which
section 3121 applies) paid by such person in such calendar
year is paid to motion picture project workers.
``(2) Motion picture project worker.--The term `motion
picture project worker' means any individual who provides
services on motion picture projects for clients who are not
affiliated with the motion picture project employer.
``(3) Motion picture project.--The term `motion picture
project' means the production of any property described in
section 168(f)(3). Such term does not include property with
respect to which records are required to be maintained under
section 2257 of title 18, United States Code.
``(4) Affiliate; affiliated.--A person shall be treated as
an affiliate of, or affiliated with, another person if such
persons are treated as a single employer under subsection (b)
or (c) of section 414.''.
(b) Clerical Amendment.--The table of sections for such
chapter 25 is amended by adding at the end the following new
item:
``Sec. 3512. Treatment of certain persons as employers with respect to
motion picture projects.''.
(c) Effective Date.--The amendments made by this section
shall apply to remuneration paid after December 31, 2015.
(d) No Inference.--Nothing in the amendments made by this
section shall be construed to create any inference on the law
before the date of the enactment of this Act.
TITLE IV--TAX ADMINISTRATION
Subtitle A--Internal Revenue Service Reforms
SEC. 401. DUTY TO ENSURE THAT INTERNAL REVENUE SERVICE
EMPLOYEES ARE FAMILIAR WITH AND ACT IN ACCORD
WITH CERTAIN TAXPAYER RIGHTS.
(a) In General.--Section 7803(a) is amended by
redesignating paragraph (3) as paragraph (4) and by inserting
after paragraph (2) the following new paragraph:
``(3) Execution of duties in accord with taxpayer rights.--
In discharging his duties, the Commissioner shall ensure that
employees of the Internal Revenue Service are familiar with
and act in accord with taxpayer rights as afforded by other
provisions of this title, including--
``(A) the right to be informed,
``(B) the right to quality service,
``(C) the right to pay no more than the correct amount of
tax,
``(D) the right to challenge the position of the Internal
Revenue Service and be heard,
``(E) the right to appeal a decision of the Internal
Revenue Service in an independent forum,
``(F) the right to finality,
``(G) the right to privacy,
``(H) the right to confidentiality,
``(I) the right to retain representation, and
``(J) the right to a fair and just tax system.''.
(b) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 402. IRS EMPLOYEES PROHIBITED FROM USING PERSONAL EMAIL
ACCOUNTS FOR OFFICIAL BUSINESS.
No officer or employee of the Internal Revenue Service may
use a personal email account to conduct any official business
of the Government.
SEC. 403. RELEASE OF INFORMATION REGARDING THE STATUS OF
CERTAIN INVESTIGATIONS.
(a) In General.--Section 6103(e) is amended by adding at
the end the following new paragraph:
``(11) Disclosure of information regarding status of
investigation of violation of this section.--In the case of a
person who provides to the Secretary information indicating a
violation of section 7213, 7213A, or 7214 with respect to any
return or return information of such person, the Secretary
may disclose to such person (or such person's designee)--
``(A) whether an investigation based on the person's
provision of such information has been initiated and whether
it is open or closed,
``(B) whether any such investigation substantiated such a
violation by any individual, and
``(C) whether any action has been taken with respect to
such individual (including whether a referral has been made
for prosecution of such individual).''.
(b) Effective Date.--The amendment made by this section
shall apply to disclosures made on or after the date of the
enactment of this Act.
SEC. 404. ADMINISTRATIVE APPEAL RELATING TO ADVERSE
DETERMINATIONS OF TAX-EXEMPT STATUS OF CERTAIN
ORGANIZATIONS.
(a) In General.--Section 7123 is amended by adding at the
end of the following:
``(c) Administrative Appeal Relating to Adverse
Determination of Tax-Exempt Status of Certain
Organizations.--
``(1) In general.--The Secretary shall prescribe procedures
under which an organization which claims to be described in
section
[[Page H9421]]
501(c) may request an administrative appeal (including a
conference relating to such appeal if requested by the
organization) to the Internal Revenue Service Office of
Appeals of an adverse determination described in paragraph
(2).
``(2) Adverse determinations.--For purposes of paragraph
(1), an adverse determination is described in this paragraph
if such determination is adverse to an organization with
respect to--
``(A) the initial qualification or continuing qualification
of the organization as exempt from tax under section 501(a)
or as an organization described in section 170(c)(2),
``(B) the initial classification or continuing
classification of the organization as a private foundation
under section 509(a), or
``(C) the initial classification or continuing
classification of the organization as a private operating
foundation under section 4942(j)(3).''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to determinations made on or after May 19, 2014.
SEC. 405. ORGANIZATIONS REQUIRED TO NOTIFY SECRETARY OF
INTENT TO OPERATE UNDER 501(C)(4).
(a) In General.--Part I of subchapter F of chapter 1 is
amended by adding at the end the following new section:
``SEC. 506. ORGANIZATIONS REQUIRED TO NOTIFY SECRETARY OF
INTENT TO OPERATE UNDER 501(C)(4).
``(a) In General.--An organization described in section
501(c)(4) shall, not later than 60 days after the
organization is established, notify the Secretary (in such
manner as the Secretary shall by regulation prescribe) that
it is operating as such.
``(b) Contents of Notice.--The notice required under
subsection (a) shall include the following information:
``(1) The name, address, and taxpayer identification number
of the organization.
``(2) The date on which, and the State under the laws of
which, the organization was organized.
``(3) A statement of the purpose of the organization.
``(c) Acknowledgment of Receipt.--Not later than 60 days
after receipt of such a notice, the Secretary shall send to
the organization an acknowledgment of such receipt.
``(d) Extension for Reasonable Cause.--The Secretary may,
for reasonable cause, extend the 60-day period described in
subsection (a).
``(e) User Fee.--The Secretary shall impose a reasonable
user fee for submission of the notice under subsection (a).
``(f) Request for Determination.--Upon request by an
organization to be treated as an organization described in
section 501(c)(4), the Secretary may issue a determination
with respect to such treatment. Such request shall be treated
for purposes of section 6104 as an application for exemption
from taxation under section 501(a).''.
(b) Supporting Information With First Return.--Section
6033(f) is amended--
(1) by striking the period at the end and inserting ``,
and'',
(2) by striking ``include on the return required under
subsection (a) the information'' and inserting the following:
``include on the return required under subsection (a)--
``(1) the information'', and
(3) by adding at the end the following new paragraph:
``(2) in the case of the first such return filed by such an
organization after submitting a notice to the Secretary under
section 506(a), such information as the Secretary shall by
regulation require in support of the organization's treatment
as an organization described in section 501(c)(4).''.
(c) Failure To File Initial Notification.--Section 6652(c)
is amended by redesignating paragraphs (4), (5), and (6) as
paragraphs (5), (6), and (7), respectively, and by inserting
after paragraph (3) the following new paragraph:
``(4) Notices under section 506.--
``(A) Penalty on organization.--In the case of a failure to
submit a notice required under section 506(a) (relating to
organizations required to notify Secretary of intent to
operate as 501(c)(4)) on the date and in the manner
prescribed therefor, there shall be paid by the organization
failing to so submit $20 for each day during which such
failure continues, but the total amount imposed under this
subparagraph on any organization for failure to submit any
one notice shall not exceed $5,000.
``(B) Managers.--The Secretary may make written demand on
an organization subject to penalty under subparagraph (A)
specifying in such demand a reasonable future date by which
the notice shall be submitted for purposes of this
subparagraph. If such notice is not submitted on or before
such date, there shall be paid by the person failing to so
submit $20 for each day after the expiration of the time
specified in the written demand during which such failure
continues, but the total amount imposed under this
subparagraph on all persons for failure to submit any one
notice shall not exceed $5,000.''.
(d) Clerical Amendment.--The table of sections for part I
of subchapter F of chapter 1 is amended by adding at the end
the following new item:
``Sec. 506. Organizations required to notify Secretary of intent to
operate under 501(c)(4).''.
(e) Limitation.--Notwithstanding any other provision of
law, any fees collected pursuant to section 506(e) of the
Internal Revenue Code of 1986, as added by subsection (a),
shall not be expended by the Secretary of the Treasury or the
Secretary's delegate unless provided by an appropriations
Act.
(f) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to organizations which are described in section
501(c)(4) of the Internal Revenue Code of 1986 and organized
after the date of the enactment of this Act.
(2) Certain existing organizations.--In the case of any
other organization described in section 501(c)(4) of such
Code, the amendments made by this section shall apply to such
organization only if, on or before the date of the enactment
of this Act--
(A) such organization has not applied for a written
determination of recognition as an organization described in
section 501(c)(4) of such Code, and
(B) such organization has not filed at least one annual
return or notice required under subsection (a)(1) or (i) (as
the case may be) of section 6033 of such Code.
In the case of any organization to which the amendments made
by this section apply by reason of the preceding sentence,
such organization shall submit the notice required by section
506(a) of such Code, as added by this Act, not later than 180
days after the date of the enactment of this Act.
SEC. 406. DECLARATORY JUDGMENTS FOR 501(C)(4) AND OTHER
EXEMPT ORGANIZATIONS.
(a) In General.--Section 7428(a)(1) is amended by striking
``or'' at the end of subparagraph (C) and by inserting after
subparagraph (D) the following new subparagraph:
``(E) with respect to the initial qualification or
continuing qualification of an organization as an
organization described in section 501(c) (other than
paragraph (3)) or 501(d) and exempt from tax under section
501(a), or''.
(b) Effective Date.--The amendments made by this section
shall apply to pleadings filed after the date of the
enactment of this Act.
SEC. 407. TERMINATION OF EMPLOYMENT OF INTERNAL REVENUE
SERVICE EMPLOYEES FOR TAKING OFFICIAL ACTIONS
FOR POLITICAL PURPOSES.
(a) In General.--Paragraph (10) of section 1203(b) of the
Internal Revenue Service Restructuring and Reform Act of 1998
is amended to read as follows:
``(10) performing, delaying, or failing to perform (or
threatening to perform, delay, or fail to perform) any
official action (including any audit) with respect to a
taxpayer for purpose of extracting personal gain or benefit
or for a political purpose.''.
(b) Effective Date.--The amendment made by this section
shall take effect on the date of the enactment of this Act.
SEC. 408. GIFT TAX NOT TO APPLY TO CONTRIBUTIONS TO CERTAIN
EXEMPT ORGANIZATIONS.
(a) In General.--Section 2501(a) is amended by adding at
the end the following new paragraph:
``(6) Transfers to certain exempt organizations.--Paragraph
(1) shall not apply to the transfer of money or other
property to an organization described in paragraph (4), (5),
or (6) of section 501(c) and exempt from tax under section
501(a), for the use of such organization.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to gifts made after the date of the enactment of
this Act.
(c) No Inference.--Nothing in the amendment made by
subsection (a) shall be construed to create any inference
with respect to whether any transfer of property (whether
made before, on, or after the date of the enactment of this
Act) to an organization described in paragraph (4), (5), or
(6) of section 501(c) of the Internal Revenue Code of 1986 is
a transfer of property by gift for purposes of chapter 12 of
such Code.
SEC. 409. EXTEND INTERNAL REVENUE SERVICE AUTHORITY TO
REQUIRE TRUNCATED SOCIAL SECURITY NUMBERS ON
FORM W-2.
(a) Wages.--Section 6051(a)(2) is amended by striking ``his
social security account number'' and inserting ``an
identifying number for the employee''.
(b) Effective Date.--The amendment made by this section
shall take effect on the date of the enactment of this Act.
SEC. 410. CLARIFICATION OF ENROLLED AGENT CREDENTIALS.
Section 330 of title 31, United States Code, is amended--
(1) by redesignating subsections (b), (c), and (d) as
subsections (c), (d), and (e), respectively, and
(2) by inserting after subsection (a) the following new
subsection:
``(b) Any enrolled agents properly licensed to practice as
required under rules promulgated under subsection (a) shall
be allowed to use the credentials or designation of `enrolled
agent', `EA', or `E.A.'.''.
SEC. 411. PARTNERSHIP AUDIT RULES.
(a) Correction and Clarification to Modifications to
Imputed Underpayments.--
(1) Section 6225(c)(4)(A)(i) is amended by striking ``in
the case of ordinary income,''.
(2) Section 6225(c) is amended by redesignating paragraphs
(5) through (7) as paragraphs (6) through (8), respectively,
and by inserting after paragraph (4) the following new
paragraph:
``(5) Certain passive losses of publicly traded
partnerships.--
``(A) In general.--In the case of a publicly traded
partnership (as defined in section 469(k)(2)), such
procedures shall provide--
``(i) for determining the imputed underpayment without
regard to the portion
[[Page H9422]]
thereof that the partnership demonstrates is attributable to
a net decrease in a specified passive activity loss which is
allocable to a specified partner, and
``(ii) for the partnership to take such net decrease into
account as an adjustment in the adjustment year with respect
to the specified partners to which such net decrease relates.
``(B) Specified passive activity loss.--For purposes of
this paragraph, the term `specified passive activity loss'
means, with respect to any specified partner of such publicly
traded partnership, the lesser of--
``(i) the passive activity loss of such partner which is
separately determined with respect to such partnership under
section 469(k) with respect to such partner's taxable year in
which or with which the reviewed year of such partnership
ends, or
``(ii) such passive activity loss so determined with
respect to such partner's taxable year in which or with which
the adjustment year of such partnership ends.
``(C) Specified partner.--For purposes of this paragraph,
the term `specified partner' means any person if such
person--
``(i) is a partner of the publicly traded partnership
referred to in subparagraph (A),
``(ii) is described in section 469(a)(2), and
``(iii) has a specified passive activity loss with respect
to such publicly traded partnership,
with respect to each taxable year of such person which is
during the period beginning with the taxable year of such
person in which or with which the reviewed year of such
publicly traded partnership ends and ending with the taxable
year of such person in which or with which the adjustment
year of such publicly traded partnership ends.''.
(b) Correction and Clarification to Judicial Review of
Partnership Adjustment .--
(1) Section 6226 is amended by adding at the end the
following new subsection:
``(d) Judicial Review.--For the time period within which a
partnership may file a petition for a readjustment, see
section 6234(a).''.
(2) Subsections (a)(3), (b)(1), and (d) of section 6234 are
each amended by striking ``the Claims Court'' and inserting
``the Court of Federal Claims''.
(3) The heading for section 6234(b) is amended by striking
``Claims Court'' and inserting ``Court of Federal Claims''.
(c) Correction and Clarification to Period of Limitations
on Making Adjustments.--
(1) Section 6235(a)(2) is amended by striking ``paragraph
(4)'' and inserting ``paragraph (7)''.
(2) Section 6235(a)(3) is amended by striking ``270 days''
and inserting ``330 days (plus the number of days of any
extension consented to by the Secretary under section
6225(c)(7)''.
(d) Technical Amendment.--Section 6031(b) is amended by
striking the last sentence and inserting the following:
``Except as provided in the procedures under section 6225(c),
with respect to statements under section 6226, or as
otherwise provided by the Secretary, information required to
be furnished by the partnership under this subsection may not
be amended after the due date of the return under subsection
(a) to which such information relates.''.
(e) Effective Date.--The amendments made by this section
shall take effect as if included in section 1101 of the
Bipartisan Budget Act of 2015.
Subtitle B--United States Tax Court
PART 1--TAXPAYER ACCESS TO UNITED STATES TAX COURT
SEC. 421. FILING PERIOD FOR INTEREST ABATEMENT CASES.
(a) In General.--Subsection (h) of section 6404 is
amended--
(1) by striking ``Review of Denial'' in the heading and
inserting ``Judicial Review'', and
(2) by striking ``if such action is brought'' and all that
follows in paragraph (1) and inserting ``if such action is
brought--
``(A) at any time after the earlier of--
``(i) the date of the mailing of the Secretary's final
determination not to abate such interest, or
``(ii) the date which is 180 days after the date of the
filing with the Secretary (in such form as the Secretary may
prescribe) of a claim for abatement under this section, and
``(B) not later than the date which is 180 days after the
date described in subparagraph (A)(i).''.
(b) Effective Date.--The amendments made by this section
shall apply to claims for abatement of interest filed with
the Secretary of the Treasury after the date of the enactment
of this Act.
SEC. 422. SMALL TAX CASE ELECTION FOR INTEREST ABATEMENT
CASES.
(a) In General.--Subsection (f) of section 7463 is
amended--
(1) by striking ``and'' at the end of paragraph (1),
(2) by striking the period at the end of paragraph (2) and
inserting ``, and'', and
(3) by adding at the end the following new paragraph:
``(3) a petition to the Tax Court under section 6404(h) in
which the amount of the abatement sought does not exceed
$50,000.''.
(b) Effective Date.--The amendments made by this section
shall apply to cases pending as of the day after the date of
the enactment of this Act, and cases commenced after such
date of enactment.
SEC. 423. VENUE FOR APPEAL OF SPOUSAL RELIEF AND COLLECTION
CASES.
(a) In General.--Paragraph (1) of section 7482(b) is
amended--
(1) by striking ``or'' at the end of subparagraph (D),
(2) by striking the period at the end of subparagraph (E),
and
(3) by inserting after subparagraph (E) the following new
subparagraphs:
``(F) in the case of a petition under section 6015(e), the
legal residence of the petitioner, or
``(G) in the case of a petition under section 6320 or
6330--
``(i) the legal residence of the petitioner if the
petitioner is an individual, and
``(ii) the principal place of business or principal office
or agency if the petitioner is an entity other than an
individual.''.
(b) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to petitions filed after the date of enactment of this
Act.
(2) Effect on existing proceedings.--Nothing in this
section shall be construed to create any inference with
respect to the application of section 7482 of the Internal
Revenue Code of 1986 with respect to court proceedings filed
on or before the date of the enactment of this Act.
SEC. 424. SUSPENSION OF RUNNING OF PERIOD FOR FILING PETITION
OF SPOUSAL RELIEF AND COLLECTION CASES.
(a) Petitions for Spousal Relief.--
(1) In general.--Subsection (e) of section 6015 is amended
by adding at the end the following new paragraph:
``(6) Suspension of running of period for filing petition
in title 11 cases.--In the case of a person who is prohibited
by reason of a case under title 11, United States Code, from
filing a petition under paragraph (1)(A) with respect to a
final determination of relief under this section, the running
of the period prescribed by such paragraph for filing such a
petition with respect to such final determination shall be
suspended for the period during which the person is so
prohibited from filing such a petition, and for 60 days
thereafter.''.
(2) Effective date.--The amendment made by this subsection
shall apply to petitions filed under section 6015(e) of the
Internal Revenue Code of 1986 after the date of the enactment
of this Act.
(b) Collection Proceedings.--
(1) In general.--Subsection (d) of section 6330 is
amended--
(A) by striking ``appeal such determination to the Tax
Court'' in paragraph (1) and inserting ``petition the Tax
Court for review of such determination'',
(B) by striking ``Judicial review of determination'' in the
heading of paragraph (1) and inserting ``Petition for review
by tax court'',
(C) by redesignating paragraph (2) as paragraph (3), and
(D) by inserting after paragraph (1) the following new
paragraph:
``(2) Suspension of running of period for filing petition
in title 11 cases.--In the case of a person who is prohibited
by reason of a case under title 11, United States Code, from
filing a petition under paragraph (1) with respect to a
determination under this section, the running of the period
prescribed by such subsection for filing such a petition with
respect to such determination shall be suspended for the
period during which the person is so prohibited from filing
such a petition, and for 30 days thereafter, and''.
(2) Effective date.--The amendments made by this subsection
shall apply to petitions filed under section 6330 of the
Internal Revenue Code of 1986 after the date of the enactment
of this Act.
(c) Conforming Amendment.--Subsection (c) of section 6320
is amended by striking ``(2)(B)'' and inserting ``(3)(B)''.
SEC. 425. APPLICATION OF FEDERAL RULES OF EVIDENCE.
(a) In General.--Section 7453 is amended by striking ``the
rules of evidence applicable in trials without a jury in the
United States District Court of the District of Columbia''
and inserting ``the Federal Rules of Evidence''.
(b) Effective Date.--The amendment made by this section
shall apply to proceedings commenced after the date of the
enactment of this Act and, to the extent that it is just and
practicable, to all proceedings pending on such date.
PART 2--UNITED STATES TAX COURT ADMINISTRATION
SEC. 431. JUDICIAL CONDUCT AND DISABILITY PROCEDURES.
(a) In General.--Part II of subchapter C of chapter 76 is
amended by adding at the end the following new section:
``SEC. 7466. JUDICIAL CONDUCT AND DISABILITY PROCEDURES.
``(a) In General.--The Tax Court shall prescribe rules,
consistent with the provisions of chapter 16 of title 28,
United States Code, establishing procedures for the filing of
complaints with respect to the conduct of any judge or
special trial judge of the Tax Court and for the
investigation and resolution of such complaints. In
investigating and taking action with respect to any such
complaint, the Tax Court shall have the powers granted to a
judicial council under such chapter.
``(b) Judicial Council.--The provisions of sections 354(b)
through 360 of title 28, United States Code, regarding
referral or certification to, and petition for review in the
Judicial Conference of the United States, and action thereon,
shall apply to the exercise by the Tax Court of the powers of
a judicial council under subsection (a). The determination
pursuant to section 354(b) or 355 of title
[[Page H9423]]
28, United States Code, shall be made based on the grounds
for removal of a judge from office under section 7443(f), and
certification and transmittal by the Conference of any
complaint shall be made to the President for consideration
under section 7443(f).
``(c) Hearings.--
``(1) In general.--In conducting hearings pursuant to
subsection (a), the Tax Court may exercise the authority
provided under section 1821 of title 28, United States Code,
to pay the fees and allowances described in that section.
``(2) Reimbursement for expenses.--The Tax Court shall have
the power provided under section 361 of such title 28 to
award reimbursement for the reasonable expenses described in
that section. Reimbursements under this paragraph shall be
made out of any funds appropriated for purposes of the Tax
Court.''.
(b) Clerical Amendment.--The table of sections for part II
of subchapter C of chapter 76 is amended by adding at the end
the following new item:
``Sec. 7466. Judicial conduct and disability procedures.''.
(c) Effective Date.--The amendments made by this section
shall apply to proceedings commenced after the date which is
180 days after the date of the enactment of this Act and, to
the extent just and practicable, all proceedings pending on
such date.
SEC. 432. ADMINISTRATION, JUDICIAL CONFERENCE, AND FEES.
(a) In General.--Part III of subchapter C of chapter 76 is
amended by inserting before section 7471 the following new
sections:
``SEC. 7470. ADMINISTRATION.
``Notwithstanding any other provision of law, the Tax Court
may exercise, for purposes of management, administration, and
expenditure of funds of the Court, the authorities provided
for such purposes by any provision of law (including any
limitation with respect to such provision of law) applicable
to a court of the United States (as that term is defined in
section 451 of title 28, United States Code), except to the
extent that such provision of law is inconsistent with a
provision of this subchapter.
``SEC. 7470A. JUDICIAL CONFERENCE.
``(a) Judicial Conference.--The chief judge may summon the
judges and special trial judges of the Tax Court to an annual
judicial conference, at such time and place as the chief
judge shall designate, for the purpose of considering the
business of the Tax Court and recommending means of improving
the administration of justice within the jurisdiction of the
Tax Court. The Tax Court shall provide by its rules for
representation and active participation at such conferences
by persons admitted to practice before the Tax Court and by
other persons active in the legal profession.
``(b) Registration Fee.--The Tax Court may impose a
reasonable registration fee on persons (other than judges and
special trial judges of the Tax Court) participating at
judicial conferences convened pursuant to subsection (a).
Amounts so received by the Tax Court shall be available to
the Tax Court to defray the expenses of such conferences.''.
(b) Disposition of Fees.--Section 7473 is amended to read
as follows:
``SEC. 7473. DISPOSITION OF FEES.
``Except as provided in sections 7470A and 7475, all fees
received by the Tax Court pursuant to this title shall be
deposited into a special fund of the Treasury to be available
to offset funds appropriated for the operation and
maintenance of the Tax Court.''.
(c) Clerical Amendments.--The table of sections for part
III of subchapter C of chapter 76 is amended by inserting
before the item relating to section 7471 the following new
items:
``Sec. 7470. Administration.
``Sec. 7470A. Judicial conference.''.
PART 3--CLARIFICATION RELATING TO UNITED STATES TAX COURT
SEC. 441. CLARIFICATION RELATING TO UNITED STATES TAX COURT.
Section 7441 is amended by adding at the end the following:
``The Tax Court is not an agency of, and shall be independent
of, the executive branch of the Government.''.
TITLE V--TRADE-RELATED PROVISIONS
SEC. 501. MODIFICATION OF EFFECTIVE DATE OF PROVISIONS
RELATING TO TARIFF CLASSIFICATION OF
RECREATIONAL PERFORMANCE OUTERWEAR.
Section 601(c) of the Trade Preferences Extension Act of
2015 (Public Law 114-27; 129 Stat. 412) is amended--
(1) in paragraph (1), by striking ``the 180th day after the
date of the enactment of this Act'' and inserting ``March 31,
2016''; and
(2) in paragraph (2), by striking ``such 180th day'' and
inserting ``March 31, 2016''.
SEC. 502. AGREEMENT BY ASIA-PACIFIC ECONOMIC COOPERATION
MEMBERS TO REDUCE RATES OF DUTY ON CERTAIN
ENVIRONMENTAL GOODS.
Section 107 of the Bipartisan Congressional Trade
Priorities and Accountability Act of 2015 (Public Law 114-26;
19 U.S.C. 4206) is amended by adding at the end the
following:
``(c) Agreement by Asia-Pacific Economic Cooperation
Members to Reduce Rates of Duty on Certain Environmental
Goods.--Notwithstanding the notification requirement
described in section 103(a)(2), the President may exercise
the proclamation authority provided for in section
103(a)(1)(B) to implement an agreement by members of the
Asia-Pacific Economic Cooperation (APEC) to reduce any rate
of duty on certain environmental goods included in Annex C of
the APEC Leaders Declaration issued on September 9, 2012, if
(and only if) the President, as soon as feasible after the
date of the enactment of this subsection, and before
exercising proclamation authority under section 103(a)(1)(B),
notifies Congress of the negotiations relating to the
agreement and the specific United States objectives in the
negotiations.''.
TITLE VI--BUDGETARY EFFECTS
SEC. 601. 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).
The SPEAKER pro tempore. Pursuant to House Resolution 566, the
question shall be divided among the two House amendments.
Pursuant to section 2(a) of House Resolution 566, the portion of the
divided question comprising the amendment specified in section 3(b) of
House Resolution 566 shall be considered first.
This portion 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 Texas (Mr. Brady) and the gentleman from Michigan
(Mr. Levin) each will control 30 minutes.
The Chair recognizes the gentleman from Texas.
General Leave
Mr. BRADY of Texas. Mr. Speaker, I ask unanimous consent that all
Members may have 5 legislative days in which to revise and extend their
remarks on H.R. 2029.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Texas?
There was no objection.
Mr. BRADY of Texas. Mr. Speaker, I yield myself such time as I may
consume.
After months of negotiations, I am honored today to talk to Americans
about the Protecting Americans from Tax Hikes Act, also known as the
PATH Act.
The most important thing for the American people to know is that this
bill prevents their taxes from increasing, helps create more jobs in
their communities, and makes it easier for them to do their taxes. It
also reins in the IRS and protects taxpayers from waste and fraud
within the large tax credit programs administered by the IRS.
Now I would like to take a moment to talk about the six specific ways
this bill helps American taxpayers.
First, this bill provides $629 billion of tax relief that families
and businesses can rely on. It is financially responsible because
preventing a tax increase is never a cost.
Republicans have always worked to stop Washington from taking more
money from the hardworking Americans who earned it. This is not
Washington's money. It is the taxpayers'. We shouldn't have to raise
taxes on some people to prevent taxes on other people from going up.
Secondly, by making a number of temporary tax provisions permanent,
this will deliver predictability, clarity, and certainty for individual
taxpayers as well as people managing businesses and trying to invest
for the future.
As we know all too well, how our country manages its Tax Code makes
absolutely no sense. How can families and local businesses count on tax
relief each year as long as Congress can't decide what is permanent and
what is not? That confusion ends with this bill.
With this bill in place, Americans will no longer have to worry each
December if Congress will take action to extend certain tax relief
measures that they have come to rely upon, including allowing State and
local sales tax deductions for families, providing small businesses tax
relief, and offering incentives--true incentives--for innovation,
including the research and development tax credit.
Third, this is a progrowth bill. This permanent tax relief will make
it easier for employees to plan ahead, hire new workers, grow their
businesses, and invest in the community.
Fourth, Americans who are frustrated by Washington waste will be
pleased to know that our bill contains stronger measures to fight fraud
and abuse in these tax credit programs.
[[Page H9424]]
While these provisions are significant, they are only a down payment on
Republican efforts to make these tax programs, which are far too prone
to error, abuse, and waste today, more accountable.
Fifth, our bill reins in the IRS and protects taxpayers, delivers the
power to fire IRS employees who take politically motivated actions
against taxpayers, requires IRS employees to respect the Taxpayer Bill
of Rights, and prohibits IRS employees from using personal email
accounts for official business.
After witnessing years of abuse at the IRS, we can all agree that
these provisions are important taxpayer victories.
Finally, this bill serves as a path forward to progrowth tax reform
by ensuring that we will no longer have to spend months each year
debating temporary tax extensions. Instead, Congress can focus on
delivering a simpler, fairer, and flatter Tax Code that is built for
growth.
I am proud of this legislation and grateful for all the Members of
Congress who have helped throughout the course of these negotiations.
This bill includes literally dozens of provisions drawn from bills and
marked up by the Ways and Means Committee this past year. That is a
reflection of the regular order that I am committed to extending and
expanding next year as the committee digs in on tax reform and other
critical measures.
There is a lot in this bill, but those are the key principles. The
bottom line is this legislation prevents tax increases, creates more
job opportunities, and makes it easier for Americans to do their taxes.
That is a great gift, an overdue gift, for the American taxpayers and
the people who want and deserve a stronger U.S. economy.
Mr. Speaker, I reserve the balance of my time.
{time} 1115
Mr. LEVIN. Mr. Speaker, I yield myself such time as I may consume.
This bill adds $622 billion to the deficit, the vast majority of
which is through permanent tax provisions. For those who propose to
have the increase in the deficit continue to drive down defense
domestic spending, this bill will almost certainly accomplish this. By
FY17, nondefense discretionary spending will have already fallen to its
lowest level, as a share of the economy, since 1962. These cuts
seriously threaten programs that assist the middle class or those who
are striving to reach the middle class, programs like Head Start and
Pell Grants and those in job training and those in basic health
research.
For those who want, as they have for years, to make tax breaks
permanent so that they will not have to be offset in revenue-neutral
tax reform, this bill will help them carry it out, leaving more room to
cut taxes for the very wealthy, which they will say will pay for
themselves.
For those who want to continue tax cuts that were only intended for a
specific period, like expensive bonus depreciation, the purpose of
which is to ease recovery from the recession and to lose its
effectiveness otherwise, this bill will help do that.
For those who want to continue international tax proposals, often
serving as a loophole and helping to move resources overseas, this bill
will help do that. The active financing international tax provision,
made permanent in this bill at a cost of $78 billion, and the extension
of the CFC look-through provision for 5 years, at a cost of $8 billion,
which often promotes tax savings, should be thoroughly reexamined as
part of comprehensive tax reform--and the sooner the better.
This bill is a piecemeal approach to tax reform. It is the opposite
of what was done by former Ways and Means Chairman Dave Camp, who kept
some provisions, who changed some, who ended some, like bonus
depreciation, and who paid for his revenue-neutral comprehensive tax
reform proposal.
These shortcomings must be weighed against the provisions that are
important priorities for Democrats--the child tax credit, the earned
income tax credit, and the American opportunity tax credit. But the
long-term negative dangers of this legislation make the price too high.
Therefore, I oppose this legislation.
Mr. Speaker, I reserve the balance of my time.
Mr. BRADY of Texas. Mr. Speaker, I yield myself such time as I may
consume.
As chairman of the Committee on Ways and Means, I have asked that the
nonpartisan Joint Committee on Taxation make available to the public a
technical explanation of the Protecting Americans from Tax Hikes Act of
2015, which the House is considering today.
The Joint Committee on Taxation has issued that technical explanation
as JCX-144-15, and it expresses the Ways and Means Committee's
understanding and legislative intent behind this important legislation.
It is available on the Joint Committee on Taxation's Web site at
www.jct.gov.
Mr. Speaker, I yield 2 minutes to the gentleman from Louisiana (Mr.
Boustany), who leads the Subcommittee on Tax Policy for the Committee
on Ways and Means.
Mr. BOUSTANY. I thank the chairman for the fine work he and his staff
have done in negotiating this package.
Mr. Speaker, Speaker Ryan has talked about restoring confidence in
America, which is something I think we can all agree on. Things we need
to do to achieve that involve restoring American leadership abroad,
protecting our American values, and, very importantly, restoring
American prosperity. We can't do that until we reform the Tax Code.
That is at the center of all of the efforts to restore American
prosperity through economic growth.
I rise in rigorous support of this bill as it stops the cycle of just
extending these provisions without vetting them year after year and in
the last hours of the year. It is time to stop that, and we are doing
that. We are making some of these provisions permanent. We are creating
certainty for American families and for American businesses at a time
of economic uncertainty. This is real tax relief that sets the stage
for tax reform.
There are a number of important provisions in this. Mr. Paulsen has
worked very hard to repeal the device tax, which stifles American
innovation, and we are going to put this on hold for 2 years. We are
going to stop the health insurance tax for 1 year, which is causing
health insurance premium hikes for American families. By some
estimates, it is $350 to $400 a year for American families, and this is
wrong.
The R&D tax credit is made permanent. American innovation is what we
want to see to get growth. It also has a whole bunch of other
provisions that help small businesses and families. We do work very
hard to create program integrity in our EITC and child tax credit,
something that is very much needed.
I believe this is a very important step forward for tax reform. It
sets the stage. We have broken that disastrous cycle of just a knee-
jerk extension of these provisions, and we have, actually, vetted a lot
of these tax provisions to be made permanent--we have run them through
committee; we have had hearings; we have had markups; we have taken
them to the floor. We are trying to restore regular order.
Ladies and gentlemen, this will be seen as a first step in restoring
American confidence. I am confident of that. Let's pass this package
and move on.
Mr. LEVIN. Mr. Speaker, I yield 3 minutes to the gentleman from
Maryland (Mr. Hoyer), the Democratic whip.
Mr. HOYER. I thank the gentleman for yielding.
Mr. Speaker, as for the last speaker, I heard that speech in 1981. I
heard it in 2001. I heard it in 2003. The certainty of this bill is
that we will explode further deficits and provide for disinvestment.
That is the certainty of this bill, and I rise in strong opposition to
it.
This package will raise deficits by approximately $622 billion over
the next 10 years. Add to that the $58 billion in unpaid-for tax
provisions in the omnibus bill of approximately $680 billion. When you
add interest to that, it is almost $800 billion in additional debt, Mr.
and Mrs. America.
I came to this floor on Tuesday and spoke in greater detail about my
opposition to this package. I, again, want to highlight one major
issue, and that is how enacting this legislation will set the stage for
the next round of painful sequester cuts, otherwise known as
disinvestment in growing our economy and jobs.
Do my colleagues not see the tragic symmetry of this package's almost
$800
[[Page H9425]]
billion in new deficits and the sequester's $813 billion in cuts that
were imposed for the sake of deficit reduction?
Republicans will again insist upon hundreds of billions of cuts from
domestic discretionary investment--i.e., growing jobs and the economy--
in order to make up for the budget shortfall incurred by the extension
of these tax credits, some of which are made permanent.
There are, certainly, good reasons to make a number of these tax
credits and deductions permanent, and I support making many of these
permanent, but we ought to pay for it in the process, as your
predecessor did, Mr. Camp. It was a tough decision he made, and it was
dismissed out of hand because it was hard to do.
This is easy to do. There is no courage required to vote for this
bill. All you have to do is suspend common sense. This legislation
flies in the face of the basic budgeting principle, which hardworking
families all across our Nation understand and have to live with every
month.
Maya MacGuineas, president of the Committee for a Responsible Federal
Budget, wrote in The Washington Post last week:
``How do we explain to our children that we borrowed more than $1
trillion--counting interest--not because it was a national emergency or
to make critical investments in the future but because we just don't
like paying our bills?''
Republicans would answer as they always do--that tax cuts somehow,
magically, pay for themselves. I have been here 35 years. It has never
happened.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. LEVIN. I yield the gentleman an additional 30 seconds.
Mr. HOYER. Mr. Speaker, we have seen that notion disproven several
times over, and the results of experimenting with that idea have been
higher deficits and a ballooning debt that fuel Republican efforts to
disinvest in our future and to dismantle Medicare, Social Security, and
safety net programs. Let's not make the same mistake again.
Instead, we ought to be voting on a straightforward, 2-year
extension, and then commit ourselves to meaningful tax reform as David
Camp did. It is tough to do, I understand that, but it is the right
thing to do. Let us show that we have courage as well as common sense.
Defeat this bill. Let us move on to meaningful tax reform and to
growing our economy.
Mr. BRADY of Texas. Mr. Speaker, I yield 2 minutes to the gentleman
from Ohio (Mr. Tiberi), one of our key leaders on tax reform.
Mr. TIBERI. I thank Chairman Brady and Speaker Ryan for their
leadership.
Mr. Speaker, to the previous gentleman, I say Mr. and Mrs. America
would be stunned to know that, to keep current policy in place, we have
to raise taxes to keep tax cuts, some of which have been in place for
30 years. The R&D tax credit has been around for 30 years. The horrible
way that we make policy here on a retroactive basis or on a ``1-year
forward and then we will address it again'' basis is changing today.
Tom and Judy Price, who are farmers in my district, have been
thinking about buying a loader this year. They can now, actually, buy
one, and they can, actually, plan for the next 10 years on how to
operate their farm and to make investments. There is that small
business guy who wants to expense or that person to whom R&D is so
important, but they weren't sure what we were going to do with the R&D
tax credit even though it has been around for decades.
For decades, the current policy has been the R&D tax credit. Yet,
making that current policy permanent was being argued by some on the
other side as our having to raise taxes to pay for this current policy.
No wonder Americans shake their heads.
This is a good bill. This is an amazing bill. Go talk to your small
business owners. Go talk to the accountant at the YMCA who puts
together tax filings for people who care about the child tax credit and
about the permanency in the child tax credit, about the New Markets tax
credit--things that have an amazing impact on our communities, like the
Low-Income Housing tax credit that Mr. Neal and I have worked on.
Section 179's permanency is unbelievable. It is going to impact
communities from coast to coast, including my district in Ohio and
farmers as well. This is going to provide amazing certainty.
I have been so pleased to work on a number of these issues with my
Republican and Democrat colleagues. This, ladies and gentlemen, is a
wonderful bridge to comprehensive tax reform.
Mr. LEVIN. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman from
New York (Mr. Rangel).
Mr. RANGEL. Mr. Speaker, I don't know how proud we can be as
legislators to say, at the end of the year, instead of legislating--
having hearings, listening to what this is going to do to help America,
and where it is going to hurt--we are so proud of the fact that we are
negotiating. Here we are talking about $680 billion of tax cuts, yet,
we all know that, when we get home, there is nobody in the world who is
going to think that their pockets, that their jobs, that their
educations are going to be better.
The world should be screaming for America to provide the leadership
and to say that we have a system based on a Tax Code that we can depend
on. Yes, we shouldn't have to extend these every year. We should work
together to bring all of this together so that we know exactly what is
going on.
I hate to say this. People talk about the earned income tax credit. I
fought for this. I am one of the people who goes against loopholes, and
I guess I have really tried to get more loopholes in it in order for
poor people to get some justice out of the tax system. The truth of the
matter is, because of the disparity in incomes, because people work
hard every day and they are still in poverty, we are going to use the
Tax Code in order to say that we will give them a refundable tax
credit.
No. What this is going to do is to remove the ability for this great
country of ours to have the discretionary funds to do the right thing,
which is really conditioned in what we call the pursuit of happiness.
We should not be using the Tax Code for social welfare, nor should we
be using the Tax Code in order to have certain companies benefit from
it.
{time} 1130
What we should be doing is reforming the entire Tax Code so America
would know where we are going and where we should be going.
Mr. BRADY of Texas. Mr. Speaker, I yield 2 minutes to the gentlewoman
from Kansas (Ms. Jenkins), a key member of our tax writing committee.
Ms. JENKINS of Kansas. Mr. Speaker, I thank the gentleman for his
good work on this issue.
As I visit with folks at home in Kansas, they often express their
frustration with Washington. Uncertainty is the enemy, whether in tax
policy, regulatory policy, or health policy. Folks simply need to know
what the rules will be so they can plan accordingly.
As a former CPA who worked in the tax area and a former State
treasurer, I have seen firsthand how uncertain tax policies that expire
every year negatively impact our hardworking businesses and families. I
am pleased we have secured a tax package that will bring much more
certainty to families and businesses across the country fighting to
create jobs in our still-struggling economy. This legislation will help
bring us closer to the stable tax policies our economy desperately
needs.
This bill is another step in the right direction toward a confident
America, built on principles and values that hard work should equal
success. This legislation will grow our economy, put more money back in
the folks' pockets, and rein in the IRS. With these foundations, we can
continue to make strides towards a progrowth agenda that helps
businesses succeed, creates more jobs, and stimulates the economy.
Mr. LEVIN. Mr. Speaker, I yield 1 minute to the distinguished
gentlewoman from California (Ms. Pelosi).
Ms. PELOSI. Mr. Speaker, I thank the gentleman for yielding, and I
thank him for his leadership on bigger paychecks for America's working
families and in so many areas. Thank you, Mr. Levin, for your
leadership.
I congratulate Chairman Brady for assuming his new position. We all
wish him success and look forward to working with him.
[[Page H9426]]
The bill before us today calls for very serious discussion. We in
this body have a very big responsibility to make decisions as
architects of our children's future, where we are making decisions that
strengthen the middle class and that take us to our responsibility to
be custodians of our democracy.
The middle class is the backbone of our democracy, and this
legislation undermines the success of the middle class. In terms of
children, their education, the financial security of their families,
the pension security of their grandparents, the health of the
environment in which they live, all of that is seriously affected by
this legislation.
Let's put it in perspective, because this is part of a grand scheme
that started after President Clinton left office. In his term of
office, because of the Budget Act of 1993 which passed with Democratic
support, it unleashed a remarkable era of job creation, and it took us
on a path to deficit reduction. In fact, five of his last budgets were
even or in surplus, and that was taking us to a path of reducing not
only the deficit--of course it would be eliminated--but the national
debt.
Along came tax cuts for the middle class, and in just a few years,
all of the progress in reducing the deficit that occurred during the
Clinton administration was reversed by the Bush tax cuts--unpaid for--
for the wealthiest. That unpaid for is really what my problem is here
today.
There are many provisions in this bill that we Democrats take
ownership of and I personally take some personal pride in having worked
on. For example, the earned income tax credit and the childcare tax
credit, those initiatives we negotiated with President Bush to take
them to the place that they are. They are a stimulus. They were debated
and passed at the time as part of President Bush's stimulus package.
When it comes to some of the initiatives like R&D, we have all been
talking about modernizing and making permanent the research and
development tax credit. The problem is, unpaid for.
When we talk about 179, that is a creation of which Democrats were
very much a part, which were the initiatives to help small businesses.
We fully subscribe to that. But when we make them permanent--and that
might be a good idea--and they are unpaid for, it also hurts our
ability to do something broader in the Tax Code and take advantage of
that opportunity.
So low-income housing tax credits, again, I think I am second to
none--except maybe Mr. Rangel--in this body in my advocacy for that,
when Mr. Rostenkowski was the chairman of the committee. It is
important that they are in this legislation, and they should be
permanent.
My problem with it all is why are these things--look, this is an
engine to send jobs overseas with some of the provisions that are in
the legislation, so it is like a Trojan horse. There are many good
things, and then all of a sudden you find out what is in the belly of
them.
So the fact that they are permanent means that, for certain things
like bonus depreciation and things like that, if they are for a short
term, people will take advantage of them. We get the boost in our
economy, and our Treasury from that.
Here is what it comes down to: You go down this path of $600-plus
billion of permanent, unpaid for tax extenders largely benefiting
corporate America and say that doesn't have to be paid for. Oh, but, by
the way, if you want to do $7 billion to honor the work of 9/11 first
responders, you have to pay for every penny of it, find a way to do it
by cuts or outlay or some other way.
So what is the symmetry in all of this? Tax cuts for businesses to
send jobs overseas, unpaid for and permanent; 9/11, which is an
emergency, would you not agree? If there ever were an emergency, it
would be 9/11. And the costs related to honoring our commitments, both
in health and compensation to those workers, should be held up because
we couldn't find pay-fors. Now we have, so that is good. We had to find
the pay-fors.
What I question very seriously is: What are the costs in the
outyears? It is hard to determine, but they are there.
What they are going to do is increase the deficit with such
seriousness that our country will have to borrow from the Social
Security trust fund to stay afloat, seriously undermining Social
Security--and as our distinguished whip said, Social Security,
Medicare, and the rest. It seriously affects this legislation,
seriously affects our ability to make the discretionary investments in
the education of our children, the promotion of growth, and the rest of
that.
So I think what it comes down to is, yes, there are some good ideas
in here. We developed them. We support them. We don't even care if some
of them are permanent. It is the unpaid for part of it that is
mortgaging our children's future, that is threatening Social Security,
and that undermines our ability to reduce the deficit and reduce the
interest payments on the national debt.
Again, we are walking away from what President Clinton did so
successfully with a very difficult vote. We lost the Congress after
that for that and other reasons. Some Members did. They said: I did the
right thing because it took us on a path of fiscal soundness, and it
took us on a path of economic growth. This, of course, was reversed in
the Bush years. The $5.5 trillion of deficit reduction was--there was
an $11 trillion reversal, one of the biggest, up until that time, of a
reversal.
My colleagues, I sympathize with some who say, well, I have always
been for R&D tax credits, and others who say, well, it has to do with
the tax stuff in my State and all that. I appreciate that, and I
respect your judgment on it.
There is a bigger picture here, and the bigger picture is our
responsibility to the future. The chickens will come home to roost on
this. We will have to pay. You know who is going to pay? Our children,
their families, the Social Security system, and the rest.
For that reason, I will not be supporting this, and I join our
distinguished Whip Hoyer in urging our colleagues to vote against it as
well. I know it sounds good. But, as I said, it is a Trojan horse, and
we should not be fooled.
Mr. BRADY of Texas. Mr. Speaker, I yield 2 minutes to the gentleman
from Minnesota (Mr. Paulsen), the House leader of the efforts to stop
the medical device tax.
Mr. PAULSEN. Mr. Speaker and Members, the United States is the only
country in the world that lets important parts of its Tax Code expire
each and every year, and we are changing that here today. This
bipartisan tax package prioritizes permanent tax relief for families
and businesses so that they can keep more of their own money, they can
hire new workers, and they can invest in new equipment.
It also does include the repeal of the medical device tax that has
been in place, and it stops it for the next 2 years, a tax that has
cost our economy jobs and has also reduced innovation.
What has been the result of this tax? One small business I spoke with
said it is pretty simple. Instead of having 10 projects, I will have 6,
which means 2 fewer engineers and 2 fewer technicians.
Another company I spoke to says, because it is a tax on sales and not
on profit, they testified it is a 79 percent effective tax rate that
they have. How can anyone justify a 79 percent effective tax rate?
Another company said they are borrowing money from the bank every
single month just to pay the tax in the hopes and taking the risk that
they will actually become profitable.
Of course, a constituent I spoke to, Jim, he told the story of losing
his job at a medical device company that he had for 21 years. He was
laid off. He eventually was rehired, but his job paid $40,000 less, his
vacation time was halved, and his health costs skyrocketed.
Of course, patients are suffering also because we have fewer
lifesaving and life-improving technologies here developed in the United
States.
Mr. Speaker, this tax package helps our economy, and it gets us back
on track with a progrowth Tax Code. I will say that our local
businesses are really excited about ending the guessing game of 6-
month, 1-year, retroactive tax policy and instead giving clarity,
predictability, and certainty so they can invest in their people and
they can invest in their equipment.
I ask my colleagues to support this legislation.
I thank the chairman for his leadership.
[[Page H9427]]
Mr. LEVIN. Mr. Speaker, I yield 3 minutes to the gentleman from
Massachusetts (Mr. Neal).
Mr. NEAL. Mr. Speaker, the bill we have before us today is the
universal legislator's dilemma: the possible versus the perfect.
I rise in support of this legislation today. I stand with President
Obama in support of this legislation today.
I rise to prevent 18 million Americans, including 8 million children,
from falling deeper into poverty.
I rise to ensure that, during this special time of the year,
nonprofits will continue their important work to improve the lives of
millions of Americans through charitable activity.
I rise to unleash billions of dollars in economic development to
rebuild, to rehab, and to refurbish our neighborhoods and our
communities.
I rise to incentivize American innovation and the millions of jobs
that it creates. At this bill's core is a modest progrowth jobs bill,
one that, given the current headwinds of our economy, is sorely needed.
I have spent the better part of my career in Congress as a champion
of the earned income tax credit and expanding it, as a champion of the
child tax credit and expanding it, as a champion of the low-income
housing tax credit and expanding it and the expansion of the New
Markets Tax Credit Program, which my DNA clearly is on.
Taken together, these credits will go a long way to toward improving
the lives of millions of Americans across the country in our typically
overlooked communities.
{time} 1145
This is not the easiest way to accomplish an end. We should be very
critical of ourselves now for the backup manner in which we do these
undertakings--voting on 12 legislative appropriations bills tomorrow
wrapped into 1; tax policy that is done in this shape and manner.
I will also say something else that we need to remind ourselves of:
the breakdown of the committee structure in Congress. What has happened
to the procedures that we all use to vet controversial legislation?
Amendments could be offered and people could speak their minds.
Today we are taking up issues that should have been vetted over the
course of the last 3 years. I offer a gentle rebuke to my colleagues on
the other side. Chairman Camp had the backbone to put out a decent
piece of legislation. It didn't mean we were going to embrace it or
endorse it, but it was a courageous act, and it was his own side that
shot it down.
In Cambridge, Massachusetts, Kendall Square has the highest
concentration of research and development today in the world. Making
the R&D tax credit permanent is going to enhance that opportunity. I
have worked on the R&D credit and pushed for a more aggressive,
predictable R&D credit through my entire years in this Congress.
This is not perfect, what we are doing today. It is far from it. But
it represents a compromise or, as The New York Times called it, an
acceptable compromise that is necessary to move the country forward.
Mr. Speaker, I urge its adoption.
Mr. BRADY of Texas. Mr. Speaker, I yield 2 minutes to the gentleman
from Washington (Mr. Reichert), the former leader of our Subcommittee
on Tax Policy.
Mr. REICHERT. Mr. Speaker, I thank the chairman for yielding and for
his hard work on this bill.
We are here in Washington, D.C., talking about tax reform, and we are
throwing around tax terms like built-in gains, bonus depreciation,
research and development, R&D, and on and on and on.
People back home I think really, for the most part, don't get all of
that talk, but they do understand when we are talking about reducing
their taxes, when we are creating an environment where businesses can
thrive, where businesses can reinvest their capital back into their
hard work, their small businesses, create jobs, sell their products,
and hire more people. That is what this bill is about.
Just three quick examples of constituencies that I am hearing from in
my district:
One, the teachers in Washington State. They really appreciate the
fact that there is certainty now that they can deduct the amount of
money they spend up to $500 on school equipment to help our children
learn. Every year or 2 years we go through this exercise of deciding
whether or not we are going to support our teachers. They have
certainty. This is not about big businesses. These are teachers.
Two, small businesses, S Corporations, can now with certainty have
access to revenue. Rather than waiting 10 years, they can have it in 5.
They can sell equipment that they had to sit on for 5 years or 7 years.
Now they can sell that equipment and buy new equipment, creating more
jobs and selling more products.
Three, for Washington State especially, the permanency in sales tax
is a big deal. The permanency in our ability in Washington State--I
think one of seven States in this country--to deduct our sales tax from
our Federal income tax creates certainty for every taxpaying citizen in
Washington State. This is a big deal.
These three small, little provisions are big deals for the average
American across this country in Washington State and in the Eighth
District of Washington State that I serve.
Mr. LEVIN. Mr. Speaker, I yield 2 minutes to the gentleman from Texas
(Mr. Doggett), another distinguished member of our committee.
Mr. DOGGETT. Mr. Speaker, the nonpartisan Committee for a Responsible
Federal Budget has said that, over two decades, this very bill will add
over $2 trillion to the national debt.
For anyone who hides behind poor kids to justify that $2 trillion in
debt, understand that there is no poor child in America who will get a
dime out of this bill next year. Their tax credits do not expire now.
We have more than another year to resolve that matter.
No, this isn't about poor children. It is about big gifts. Indeed, in
the holiday spirit, the biggest bow of all has been put on a special
gift for Wall Street. The world's largest financial institutions, you
know, the ones that brought America to its economic knees with the
debacle over finances and then came forward and got a majority of this
Congress--not me--to vote for a taxpayer bailout, well, they are back
here again, and they are getting a reward.
They are getting a tax subsidy that is made permanent. It just
happens to be a tax subsidy that was removed from our Tax Code
originally in a bill that Ronald Reagan signed into law. When it got
put back in on a temporary basis, Bill Clinton sought to veto the
provision because it was so unjustified.
Christmas, of course, is not cheap. This bill, this gift to Wall
Street, costs $78 billion--not paid for--borrowed from the Saudis and
from the Chinese to give Wall Street $78 billion, with a ``B.''
How much money is that? Well, about the same amount is included in
the bill this will be a part of. It funds all the medical research at
the National Institutes of Health, the Centers for Disease Control, all
of Head Start across the country, and all of the education for the
disabled and disadvantaged that is provided by the Federal Government.
All of that combined is $78 billion. But you can be sure that Wall
Street is never disabled or disadvantaged in the Capitol.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. LEVIN. Mr. Speaker, I yield an additional 30 seconds to the
gentleman.
Mr. DOGGETT. This $78 billion tax subsidy is called the ``active
financing exception.'' My, my, these bankers have been active here.
They may have been very naughty to the American people. They may have
been very naughty to the American economy. But they have been, oh, so
nice to some Members of Congress.
Republicans and some Democratic enablers are helping keep a provision
in here that will only lead to shipping jobs overseas. They are
borrowing from overseas to put this burden on the American people. This
is the kind of provision that causes Americans to be so concerned about
their government and a feeling that it has run away from them because
these kinds of provisions are running away our debt and denying the
support for Make It In America that we need.
Mr. Speaker, I urge the rejection of this package that will do so
much harm to our country.
[[Page H9428]]
General Leave
Mr. BRADY of Texas. Mr. Speaker, I ask unanimous consent that all
Members may have 5 legislative days in which to include extraneous
materials to the motion now under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Texas?
There was no objection.
Mr. BRADY of Texas. Mr. Speaker, I yield 1\1/2\ minutes to the
gentleman from Nebraska (Mr. Smith), a big fighter for American
agriculture who serves on the Committee on Ways and Means.
Mr. SMITH of Nebraska. Mr. Speaker, I thank the chairman for his
efforts on better tax policy. The U.S. Congress owes the American
people better tax policy than we currently have.
We currently have so many temporary provisions that so many Americans
are wondering and trying to predict what the tax policy will be by the
end of the year. That is not what we should be about. We should be
about establishing permanent tax policy whenever we can.
I appreciate the bipartisan interest in today's bill because I know a
lot of work has gone into this. I know that constituents in Nebraska's
Third District can appreciate what permanent tax policy can deliver,
especially as it sets us on a trajectory to comprehensive tax reform.
We hear from both sides that we need comprehensive tax reform. I
agree. This is a great way to move the ball down the field. We can end
up with better tax policy today as a result of this legislation. I urge
my colleagues to adopt this legislation.
Mr. LEVIN. Mr. Speaker, how much time remains on each side?
The SPEAKER pro tempore. The gentleman from Michigan has 15\1/2\
minutes remaining. The gentleman from Texas has 15 minutes remaining.
Mr. LEVIN. Mr. Speaker, I yield 2 minutes to the gentleman from
California (Mr. Thompson), another distinguished member of our
committee.
Mr. THOMPSON of California. Mr. Speaker, I stand today in support of
many of the provisions that are in this bill. I, too, believe that we
need to bring permanency to our tax policy.
One of the pieces of this legislation that we are debating today is
one that is very near and dear to my heart, something I have worked on
since the day I got to Congress, and that is the conservation easement
provision, which has helped all of our districts a great deal. That,
too, needs to be made permanent.
But I stand in opposition to the overall bill. It is not because it
is bad policy. We all agree that a lot of the provisions in this bill
are good public policy. We should pass them. We should make them
permanent.
But, sadly, this bill is fiscally reckless. We are going to pass this
policy, and we are going to send a nearly $700 billion bill on to the
taxpayers of this country.
In his comments, my friend, the gentleman from Louisiana, said that,
for every piece of legislation in here, they have had hearings, they
have had markups, and they have taken these to the floor. He is
absolutely correct.
We have done everything except make sure this bill is paid for. That
is a responsibility that all of us should take seriously. We should not
pass tax expenditures without paying for them.
I urge a ``no'' vote on the bill.
Mr. BRADY of Texas. Mr. Speaker, I yield 1 minute to the gentlewoman
from Tennessee (Mrs. Black), a member of our committee who is a
champion of the State and local sales tax deduction.
Mrs. BLACK. Mr. Speaker, I rise today in strong support of the
Protecting Americans from Tax Hikes Act, which includes a permanent
extension of the sales tax deduction that is so critical for Tennessee.
We are proud to be one of only nine States in the Union without an
income tax on wages.
Taxpayers in other States are able to deduct their State income tax
on their Federal returns. It only makes sense that a similar deduction
would be made available in States like mine that exercise our right not
to pile on additional income tax on our own.
As the only Member of the Committee on Ways and Means from the State
of Tennessee, I was proud to work with Chairman Brady to ensure the
inclusion of this much-needed provision in today's bill. I am also
pleased that this legislation includes language to combat educational
tax fraud.
Specifically, this bill requires that individuals claiming the
American Opportunity Tax Credit provide the employer identification
number of the educational institution they are attending, in turn,
saving our tax system an estimated $837 million in fraudulent payments.
I urge passage of the Protecting Americans from Tax Hikes Act.
Mr. LEVIN. Mr. Speaker, I yield 2\1/2\ minutes to the gentleman from
Oregon (Mr. Blumenauer).
Mr. BLUMENAUER. Mr. Speaker, I, too, have been deeply concerned about
the long-term trends of our failing to come forward with revenue to pay
for America's priorities. I found the Bush tax cuts a disaster.
I have repeatedly brought before my friends in Congress proposals to
actually fund our priorities. I look forward to doing so again, either
stand-alone or in the context of comprehensive tax reform.
I am prepared, however, today to support the provisions before us.
First of all, I think the cost ought to be put in perspective because
these items are ones that have been routinely approved year in and year
out, not particularly paid for, and they are ones that will be approved
again.
My friend, the distinguished minority whip, talked about it is better
to do just 2 years. Doing it on an ongoing basis for 2 years continues
to have the same cost, but provides uncertainty for people who depend
upon it.
There are a number of provisions here that we all worked on: wind,
solar, new markets, short line, transit parity, CIDER Act. These are
items people deserve to have some clarity on moving forward for
numerous provisions that ultimately would pass, but we would hold
people in suspense until the end.
But I want to speak to one particular item here. My good friend from
Texas said you don't have to worry about the earned income tax credit
or the child tax credit because they don't expire until next year.
Well, I would respectfully suggest that, if we followed that path and
waited until 2017, not in the context of this total package, I think we
are putting at risk significant tax relief for working, low-income
Americans and their families.
{time} 1200
Left alone, there would be a huge price to be extracted from some in
Congress who aren't particularly supportive of this Democratic
priority. It would put at risk the support for these 16 million
Americans, half of whom are children, and 164,000 Oregonians.
I think adopting it in this package and making it permanent is a far
superior approach to guarantee that. Then, by all means, let's roll up
our sleeves and work on the provisions together. There is going to be
lots to argue about, but in the meantime, I feel comfortable supporting
those priorities--and particularly for low- and moderate-income
Americans.
Mr. BRADY of Texas. Mr. Speaker, I yield 1\1/2\ minutes to the
gentleman from New York (Mr. Reed), who has been a key leader of the
Ways and Means Committee on manufacturing and energy.
Mr. REED. Mr. Speaker, I thank the chairman for yielding, and I thank
him for his hard work, as well as the folks on the other side of the
aisle who have come together to support this legislation, as I do,
today.
Mr. Speaker, hardworking taxpayers across America deserve a fairer,
simpler Tax Code, and one that allows them to keep more of their hard-
earned dollars. That is exactly why I support this legislation, as it
is a step in the right direction along that path.
The other important aspect of this legislation is it brings certainty
to our manufacturers and the energy sector in regard to these
provisions that are temporarily extended each and every year, as my
colleagues have recognized over and over again, and now, to a large
extent, we make permanent. That allows them to plan for tomorrow. That
allows them to make the investments with their hard-earned dollars in
the places they choose to put that money. And they can rely on a Tax
Code now that is certain, simpler, and fairer on their behalf.
We also take care of hardworking families in this bill. We also take
care
[[Page H9429]]
of people in our bill, the Mortgage Forgiveness Act and the America
Gives More Act, where we talk about charitable donation of food
inventories.
That is the right policy for the American people. That is the right
policy for hardworking taxpayers across America. And I am glad that we
have on the floor today an opportunity to demonstrate to hardworking
taxpayers that we care about them and that we are going to put their
interests first and foremost, rather than those of Washington, D.C.,
and of the elected officials here.
Mr. BRADY of Texas. Mr. Speaker, I yield 2 minutes to the gentleman
from Pennsylvania (Mr. Kelly), another key member of our committee, who
brings such local business sense to the issue of taxes.
Mr. KELLY of Pennsylvania. I thank the chairman for yielding.
Mr. Speaker, I rise in strong support. This is one of the things that
I think really makes us a little bit different. It is about certainty.
And where I am from, there is an old saying: If you don't know where
you are going, any road will get you there. Well, people who run
businesses actually have to know where they are going before they
start. So this does bring some honesty to what it is that we need to
do.
But in a time when people talk about ``I'' and ``me''--and that is
what I hear most of the time--I want to talk about all the other
people: the ``we's'' that got together. This is truly a joint effort
between a lot of staff members. It is not just Members of Congress, but
staff members.
So, if I could just for a second thank the committee's tax team:
George Callas, Mark Warren, Harold Hancock, John Sandell, Aharon
Friedman, and Jennifer Acuna. They have put in unbelievable amounts of
time on this to get this done not for the Republican Party, but for the
American people. How refreshing it is at this time of the year to
actually give back and do something for others--and do it in a way that
just makes common sense to everybody out there who has to know where it
is that they are going.
There is something about certainty that gives us the confidence to go
forward and that gives us that assuredness that we can actually get
there. This is an incredible opportunity. This is really historic.
So I want to thank Members on both sides. I think the American people
will sit back and say: This is the place where these guys and girls
can't get together on anything. I would just say that is not true. This
is truly bipartisan. It has taken an awful lot of work by an awful lot
of people. So I want to take time to thank them for what they did. They
are incredible people and great patriots.
Mr. LEVIN. Mr. Speaker, I yield 2 minutes to the gentleman from
Wisconsin (Mr. Kind), another distinguished member of our committee.
Mr. KIND. I thank my friend for yielding.
Mr. Speaker, I am all for certainty. I am all for predictability. I
am all for a lot of the policy initiatives that are contained in this
legislation before us. But what I am not in favor of is the fact that
this $700 billion bill is not paid for. Not a nickle of it is offset.
When I go home to Wisconsin, I constantly hear from folks back home
for Congress to pay our bills and to get our fiscal house in order.
This legislation doesn't do it. It is $700 billion over the first 10
years. It explodes to $2 trillion in the second 10 years.
There is nothing more dangerous for the long-term success of Social
Security and Medicaid or our children's future than these end-of-the-
year, large tax cut packages that are not paid for and that are not
offset.
It is a missed opportunity. We should be doing this within the
context of comprehensive reform. I submit that by going forward and
making permanent many of these provisions in the legislation today, it
takes the wind out of the sails of tax reform in the future.
There has been an implicit agreement when we do comprehensive reform
that we are going to do it in a way that builds in certainty,
encourages investments, makes us more competitive globally, but we
don't blow a hole in the deficit and our children's future at the same
time. Chairman Camp recognized that with the discussion draft. He made
hard choices to pay for the lowering of rates and the broadening of the
base. We are ducking that responsibility here today.
The irony is that every bipartisan deficit reduction commission that
has been asked to try to come up with a plan to get our fiscal house in
order has reached the same conclusion: We are going to need some
additional revenue in the future and long-term spending reforms in
order to accomplish it. This legislation fails on both of those fronts.
So I would encourage my colleagues to vote ``no'' on this
legislation. We can continue temporarily to extend many of these
important provisions today, but let's keep the pressure on
comprehensive reform. By doing this now, I submit that we are punting
on the opportunity in the very short future to take on a Tax Code that
has been long overdue for reform since 1987.
I encourage my colleagues to vote ``no.''
Mr. BRADY of Texas. Mr. Speaker, I yield 1\1/2\ minutes to the
gentleman from Ohio (Mr. Renacci), a key member of our committee who
has extensive business experience.
Mr. RENACCI. Mr. Speaker, I want to thank the chairman and his staff
for their hard work.
Mr. Speaker, I rise today in support of the Protecting Americans from
Tax Hikes Act, or the PATH Act.
I came to Washington as a business owner and CPA to reform our broken
Tax Code and protect hardworking American taxpayers. Many of those
taxpayers come to my office on an annual basis, looking at many of
these extenders and not really understanding whether they were
permanent or not permanent, whether they had them or would have the
opportunity to use these credits. This package here makes many of those
credits permanent.
The PATH Act is an important first step forward in allowing us to
reform our broken Tax Code. This legislation will make several tax
policies permanent, such as the R&D credit and small business
expensing. It will provide certainty and predictability to our
businesses and individuals. And most importantly, it will help open the
door to economic growth.
This legislation also removes unnecessary tax compliance burdens. The
PATH Act includes a bill I introduced with many of my colleagues,
including many on the Bipartisan Working Group that I formed many years
ago. The Information Reporting Simplification Act of 2015 is in the
bill. This bipartisan, commonsense legislation provides a safe harbor
to eliminate the need to correct minor errors on tax forms that have de
minimis impact on the tax liability outcome, and helps avoid the waste
in time and dollars for businesses and individuals that would otherwise
have to refile their tax returns.
Mr. Speaker, the PATH Act is an important first step in fixing our
Tax Code, and I urge my colleagues to join me in support.
Mr. LEVIN. Mr. Speaker, I yield 2\1/2\ minutes to the gentleman from
California (Mr. Becerra).
Mr. BECERRA. I thank the gentleman for yielding.
Mr. Speaker, there are pockets of Americans who might like the tax
break here for corporations or the tax break there for wealthy folks
who want to donate some of their IRA. But for the 320 million Americans
in the country, and particularly for the 147 million Americans who file
Federal tax returns, my guess is they are more concerned about their
security and that of their children--their personal security, our
national security, and our economic security.
After San Bernardino, Colorado Springs, Charleston, and Newtown,
where Americans were senselessly gunned down in our schools, at work,
and in our places of worship, the American people want job one of this
Congress to be security--personal, national, and economic.
So why, 2 weeks after 32 Americans were terrorized and 14 of them
killed in San Bernardino, would we make this massive, $600 billion tax
break giveaway and charge it to the government credit card--because
remember, it is not paid for--the first major legislation to come
before this House for a vote?
We can all agree that the FBI does important work keeping us safe,
tracking down terrorists. We all agree that they need to do more. So
why would we be voting for this bill, which will rob funding for
everything from the FBI to food safety to college Pell grants?
[[Page H9430]]
The cost of this bill would fund the FBI for the next 73 years--
because, remember, these tax breaks are not paid for. We have got to
pay for them somehow. If you were to add up the cost of this tax break
bill, it could fund the FBI for 73 years. And why would we use the
credit card for people who can give up their IRAs, when most Americans
can't even put enough money into one basic IRA?
This is wrong-headed. These are not the American people's priorities.
We can do this right. We can reform the Tax Code. But this is not the
reform that the American people are asking us for. They are asking us,
first and foremost, to keep our eye on the prize: our security, my
kids' security, your kids' security, our national security, and our
economic security.
You give away this money to corporations, you give it away to wealthy
folks, and guess what? Can that person who has to think about the job
and worry whether he or she is safe at the job or their kids are safe
at school or can you go worship safely, are they going to be able to
send their kids to college, buy that home, and retire in security?
Think about it.
I urge my colleagues to vote ``no'' on this legislation.
Mr. BRADY of Texas. Mr. Speaker, I yield 1 minute to the gentleman
from North Carolina (Mr. Holding), a member of the Ways and Means
Committee who has focused on making companies competitive here and
around the world.
Mr. HOLDING. Mr. Speaker, the PATH Act will provide much-needed
certainty to our Nation's families and small businesses and, most
importantly, lay the foundation for comprehensive tax reform.
For far too long, folks in North Carolina had to face the burden of
trying to grow their businesses and plan for the future while being
forced to operate under a tax system comprised of temporary tax
provisions whose fate is unpredictable.
With this bill, farmers in my district will be able to purchase a new
tractor without having to gamble on whether Congress will extend the
expensing provisions they depend on. In the Research Triangle Park,
innovative companies will finally be able to access the R&D credit to
further support their groundbreaking research without being concerned
as to whether Congress will extend the credit or not.
Mr. Speaker, importantly, it is imperative that we continue to build
on this progress. This bill is an important first step towards
comprehensive tax reform that simplifies the Tax Code, lowers the rate,
and makes America competitive around the world.
I urge my colleagues to support the PATH Act.
{time} 1215
Mr. LEVIN. Mr. Speaker, I yield 2 minutes to the gentleman from New
Jersey (Mr. Pascrell), a distinguished member of our committee.
Mr. PASCRELL. Mr. Speaker, let's cut to the chase. I support this
legislation. It wasn't an easy decision, but I believe that Democrats
were able to get a lot of policies into the bill that are good for the
middle class. It is going to help 16 million Americans out of poverty.
In New Jersey, 435,000 children and 219,000 families will lose some
or all of their working family tax credits if we don't do this.
This package includes a bill introduced by my friend from New York,
Tom Reed, and myself to help put people back to work. Our tax credit
for businesses who hire long-term unemployed Americans--and we have
abandoned them, let's face it--will help those families who haven't yet
felt the effects of our economic recovery.
Another bill the gentleman from Washington (Mr. Reichert) and I co-
authored supports our Nation's hardworking teachers. You heard him
speak about it just several minutes ago.
Both of these bills are part of the tax package before us today. And
as the gentleman from Oregon (Mr. Blumenauer) said, these things pass
routinely anyway.
Who the heck are we kidding? The enemy of the good is the perfect.
Over and over and again we prove that here on this floor.
An important provision allowing public safety officers to withdraw
from their pensions when they retire early without a tax penalty is
included in this package.
There are provisions that support mass transit commuters, small
businesses, low-income housing, families paying for college, economic
development.
The earned income tax credit and the child tax credit are our biggest
forces against poverty in this country, in this Nation. I can't say
enough about the significance of making these enhanced credits
permanent.
But when faced with the choice between these important priorities for
families, for teachers, for public safety officers, I simply can't, in
good conscience, vote against them to prove a point that not everything
is in there, including the kitchen sink. The bill is far from perfect.
And in conclusion, let me say this. I think this has been a civil
debate, and that is healthy for us, all of us, regardless of what
happens in the vote.
Mr. BRADY of Texas. Mr. Speaker, I yield 1\1/2\ minutes to the
gentleman from Illinois (Mr. Dold), a member of our committee who has
focused on working families in Illinois.
Mr. DOLD. Mr. Speaker, I thank the chairman for his leadership and
for yielding time.
Today we are voting on a historic bill. Frankly, as a small-business
owner, when I came to Congress, it was largely because I felt the
government was making it harder and harder for me to put the key in the
door and open up my small business each and every day. They should be
making it easier for me to open up my business, easier for me to hire
that next individual.
I hear from small businesses each and every day, that they need more
certainty. If they had the certainty, they would be able to move
forward. Instead, they sit on their hands.
These tax policies that we are voting on today, what a difference a
year makes. A year ago this December, we were extending these tax
extenders, and we made it for 1 year, which was retroactive. My
goodness gracious, retroactive tax policy. I can't imagine anything so
asinine. This package today, this historic package, talks about making
many of these provisions permanent.
The R&D tax credit, if we want to talk about innovation, we want to
talk about moving our country forward and being on the leading edge,
this R&D tax credit is absolutely vital for small businesses that want
to expense equipment. We make that permanent. It is absolutely vital
that we are jump-starting our economy and growing more American jobs.
But it is not just for the businesses in here. We are also protecting
families. We are also helping families pay for higher education.
We have incentives for charitable giving. Now listen. There are some
that say the government should be the one that determines where these
dollars go, but I would argue for putting that choice into the hands of
the American people as to where they can put those dollars into the
charitable organizations that they care about. Those dollars will go so
much further.
That is exactly the type of bipartisan legislation that the American
people not only want, but expect, from this body.
We also have so many other great things in this package: transit
parity, development for affordable housing.
I urge my colleagues to come together in a bipartisan way and
resoundingly pass this package.
Mr. LEVIN. Mr. Speaker, I yield 2 minutes to the gentleman from
Illinois (Mr. Danny K. Davis), another very active member of our
committee.
Mr. DANNY K. DAVIS of Illinois. Mr. Speaker, I have been told that
all that glitters is not gold. There isn't much that is absolutely
perfect, and this extender package certainly is not.
However, I am pleased to note that it does make the child tax credit
permanent, the American opportunity tax credit permanent, the earned
income tax credit permanent, extends deductions for expenses for
elementary and secondary schoolteachers, extends deductions for State
and local general sales tax, extends deductions for certain charitable
giving, and extends deductions for research activities, which helps to
create jobs.
The new market tax credit has been beneficial to districts like mine
all over the country, and I am indeed pleased to see it extended.
[[Page H9431]]
The work opportunity tax credit is a godsend for long-term
unemployed. I have worked on an issue called Work Colleges, and I am
pleased to note the exemption for students who work under this
provision.
I am also pleased to note the elimination of residency requirements
for disabled individuals who are eligible for the ABLE program. I am
also pleased to note the exclusion for wrongfully incarcerated
individuals.
Mr. Speaker, these extensions are good. I am not sure that they are
going to do enough. They are not paid for, and I am not sure that they
are going to do as much for low- and moderate-income families and
communities as I had hoped, or for job creation or for disadvantaged
areas. I am convinced that they will do good, but I am not sure that
they will do enough.
Mr. BRADY of Texas. Mr. Speaker, I yield 1 minute to the gentleman
from Pennsylvania (Mr. Meehan), one of the members of the Ways and
Means Committee focused on small businesses and on ending this medical
device tax.
Mr. MEEHAN. Mr. Speaker, I thank the chairman.
Let me express my support for this, really, through the people that I
represent. I try to think about: How does it make a difference in their
lives?
It does for the person looking for a job. And we see that jobs are
created by small business, and this is the kind of a program which we
have now given certainty to the entrepreneurs that will create new jobs
and, therefore, new revenue by somebody who is back to work.
We appreciate teachers who take money out of their own pocket. It is
not a big dollar amount, but we say thank you for making your
commitment to our children.
We appreciate our communities with conservation easement that will
allow us to preserve the beauty, particularly in areas in which open
space continues to be an issue.
But I think it is in the issue of health care, families struggling
with diseases, that now we incent the kind of research and development
to make a change; and then, ultimately, when we do have the products
that we can bring to market, we are not taxing them and driving them
further away from the consumer.
For all of these reasons, it makes a difference to the people in a
positive way, and that is why I urge my colleagues to be supportive.
Mr. LEVIN. Mr. Speaker, I reserve the balance of my time.
Mr. BRADY of Texas. Mr. Speaker, I yield 1\1/2\ minutes to the
gentleman from Illinois (Mr. Roskam), a key member, the leader of our
Oversight Subcommittee who authored many of the IRS reforms that are in
this bill.
Mr. ROSKAM. Mr. Speaker, I thank Chairman Brady.
Not long ago, the Internal Revenue Service reached out its long arm
and decided to try and get between donors and 501(c)(4), (c)(5), and
(c)(6) organizations. The IRS did something that was really
provocative.
What they said was--they created a false impression, and they sent
letters to donors that had a chilling effect and said: We know that you
made this contribution, but we think we may have a tax liability for
you there. You can imagine how this had a shuddering effect all
throughout these areas. And lest people think that this is a left-right
issue, it is not. Left and right were both under a great deal of threat
here.
So I am really pleased that in this extenders package is something
that has had broad bipartisan support and bicameral support and support
from both the political left and the political right, and that is to
say that gifts to 501(c)(4), (c)(5), and (c)(6) organizations should be
tax exempt, and the IRS ought not be manipulating and intimidating and
so forth. So, Mr. Speaker, what this does is it makes sure that the IRS
is boxed in and that there is no gift tax liability.
I strongly support this package, and I thank Chairman Brady.
Mr. LEVIN. Mr. Speaker, I reserve the balance of my time.
Mr. BRADY of Texas. Mr. Speaker, I am pleased to yield 1 minute to
the gentlewoman from Indiana (Mrs. Walorski), who has been a key
proponent of tax relief for families and small businesses.
Mrs. WALORSKI. I thank the chairman for yielding.
Mr. Speaker, I rise in strong support of the Protecting Americans
from Tax Hikes Act. There are many great pieces of this bill, but I
want to highlight two in particular that will help Indiana's economy.
For decades, the research and development tax credit has relied on
short-term extensions, leaving innovators in complete limbo. Today, we
are making it permanent, giving innovative industry the confidence to
make investments here in the United States. Indiana is also home to 300
medical device companies, employing over 20,000 people, and stands to
benefit greatly from this certainty.
I am also thrilled today that we are delaying the damaging medical
device tax for 2 years. This misguided tax will cost jobs, harm
patients, and I look forward to the day that we can fully repeal it.
Mr. Speaker, our Tax Code is a mess; but today we have an opportunity
to give certainty to individuals, to families, charities, and job
creators, and we can take another step forward toward comprehensive tax
reform.
Mr. LEVIN. Mr. Speaker, I reserve the balance of my time.
Mr. BRADY of Texas. Mr. Speaker, I yield 1 minute to the gentleman
from South Carolina (Mr. Sanford), who is a strong proponent of
progrowth tax reform.
Mr. SANFORD. Mr. Speaker, I rise as a fiscal hawk. I rise as one who
believes passionately in the issue of the debt and the deficit and
government spending, but one who believes that we can't pretend our way
to fixing those problems and that the first part of fixing a problem
lies in actually recognizing that you have a problem. Yet the reality
is that, for the last 30 years or so, we have pretended that which was
permanent was impermanent, which makes, overall, this notion of tax
reform incredibly difficult.
Ronald Reagan once observed that the closest thing to eternal life
was a government program. It is true with regard to tax policy as well.
So I just applaud the committee for the way that they have moved us
to a place where we can move to a fair tax, a flat tax, changing the
Tax Code to make the system fairer and flatter, more equitable for all
and then, frankly, get rid of some of the provisions that don't belong
in this Tax Code.
Mr. LEVIN. Mr. Speaker, I yield myself the balance of my time.
Well, here we go again, $622 billion added to the deficit, and when
you include interest on the deficit, far more. No hard choices. We are
making a bad choice.
There has been lots of talk here about certainty. What is certain
with this bill is that it will lead to further starving what the
Republicans call the beast: adequate domestic spending for education,
for health, for job training, for nutrition programs.
What is also certain is that it is going to make it easier for
Republicans to cut taxes for the very wealthy.
{time} 1230
That has always been one of the major purposes of all these bills
making permanent unpaid-for tax cuts. It is also certain with this bill
that we will keep loopholes that need to be closed.
For all of these reasons, Mr. Speaker, I think the cost is much too
high. There are some important provisions here, but their significance
I think is really overwhelmed by the fact that we are going to add
money to the deficit and have consequences for the long term.
Mr. Speaker, I urge opposition to this bill.
Mr. Speaker, I yield back the balance of my time.
Mr. BRADY of Texas. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I first want to thank the Ways and Means members who
have for years and years worked on making these important tax relief
provisions permanent and who have continued with me to stay at the
table to work through an agreement that finally provides tax relief
that families and businesses can count on.
Mr. Speaker, that wouldn't have been possible without an extremely
talented professional staff. Our tax team, led by Mr. George Callas,
did remarkable work in crafting this tax relief permanent measure. For
that I say thank you.
[[Page H9432]]
This is a historical day. Today we end business as usual in Congress,
and we take an important first step to progrowth tax reform. This bill
provides tax relief families and businesses can finally count on. It
reins in the IRS and protects taxpayers. It includes the first
significant antifraud provisions in the IRS tax credit program since
the 1990s. It finally creates true, honest accounting of our Tax Code.
It spends no more than what we spend each year as Congress lurches
December to December trying to decide what is permanent, what is
temporary, and what can people count on. Today we heard arguments that
these tax savings advance terrorism, starve children, and are
apparently responsible for the breakup of the Beatles.
The truth of the matter is, Mr. Speaker, extending these provisions
year by year is no less--the math is no different than simply
acknowledging that it is going to be done and doing it permanently so
that we can actually create tax relief our families and businesses can
count on.
Mr. Speaker, this is not the end of tax reform. This is a serious
first step to progrowth tax reform that is built for growth, built for
the growth for families' paychecks, built for the growth of our local
businesses, and built for the growth of America.
We have got work to do. Today we start that work. Let's get to work.
Mr. Speaker, I yield back the balance of my time.
Mr. KIND. Mr. Speaker, I rise today in support of a number of the
policies included in the PATH Act, but in opposition to fully paying
for it.
As a member of the Ways and Means Committee, I have long supported a
number of provisions included in the PATH Act on the floor today. A
number of these provisions are vital for our businesses to operate;
others are critical to helping families plan for the year ahead. I have
worked closely with Congressman Tiberi on an enhanced Sec. 179
expensing limitations for small businesses and with Congressman
Reichert on the reduction of S-corporation recognition period for
built-in gains tax. I appreciate the dedication of my partners across
the aisle to working with me to see these proposals over the finish
line and signed into law.
Within the PATH Act, I am pleased that the 50,000 families in my
district who receive the Child Tax Credit and the 40,000 who benefit
from the Earned Income Tax Credit will be able to count on these
benefits in the years to come. Many new provisions in this package are
important to me and our communities, including my bill with
Congresswoman Jenkins to improve section 529 accounts to help our
students save for college more effectively. I am also pleased to see
the inclusion of the provision allowing rollovers from 401(k)s to
SIMPLE IRAs to help families better save for retirement. The creation
of agricultural research organizations, a bill I introduced with
Congressman Nunes, will help universities and extensions across the
country invest in cutting edge 21st century agricultural research.
Finally, I am glad to see that legislation I worked on with Congressman
Paulsen to remove bond requirements for craft beverages is included in
the PATH Act.
As lead Democratic sponsor on the Protect Medical Innovation Act that
repeals the device tax, I have been, and continue to be, strongly
supportive of repealing the medical device tax. The medical device
industry is one of the most innovative and creative in the U.S. economy
today. Some of the greatest cost savings we've seen in the health care
system have come through technological breakthroughs in the medical
device and biotechnology industries. I fought against including the
medical device tax during debate on the ACA and remain opposed to it
now, but I am also committed to fiscal responsibility.
Although this legislation included a number of my bills and
proposals, I will be voting against the bill on the floor today.
Without offsets, these provisions will cause our deficits to explode.
Tax cuts do not pay for themselves, as Republican CPO Director Keith
Hall reminded us just this summer. This bill makes comprehensive tax
reform even more difficult by narrowing the base and eliminating
options. The United States needs comprehensive tax reform that broadens
the tax base while lowering rates on businesses and families. The PATH
Act narrows that base, and makes no effort to remove any wasteful
provisions. This package, while commendable for many of its policy
goals, will fuel unsustainable deficit growth and I must oppose the
package on these grounds. In the future, I look forward to working on
bipartisan tax reform that promotes both a better business climate and
supports the middle class.
Mr. VAN HOLLEN. Mr. Speaker, I rise in opposition to the PATH Act.
This bill does take some good steps, but the failure to close special
interest tax loopholes to offset permanent businesses tax provisions
leads to a massive loss in federal revenue, and proves once again that
Republicans are committed to using accounting gimmicks that would make
Enron blush.
This bill does include extension of some important enhancements to
the EITC, Child Tax Credit, and American Opportunity Tax Credit. These
are vital pro-work, pro-family income supports, and making the
enhancements permanent will help tens of millions of Americans.
But, while a permanent extension of these provisions is a positive
first step, this bill stopped short of doing more for working families.
The child tax credit did not get indexed, so will not rise with the
cost of living. Each year, the credit loses value in real dollars,
making it harder and harder for low-income families. There is also
bipartisan agreement that the EITC for childless workers is far too
low, and yet the EITC for childless workers was left out of the PATH
Act. I believe not taking these steps today is a missed opportunity.
The unpaid-for tax cuts in the PATH Act are also more proof that the
Republicans' claims of fiscal discipline are at best gimmicks, and at
worst out-right fabrications. Between the PATH Act and the tax
provisions in the omnibus spending bill, federal revenue is being
reduced by $680 billion over the next ten years.
Since my Republican colleagues probably won't say it, I will remind
everyone of one key fact--when Republicans passed their budget and
claimed that it would balance in ten years, they relied on every single
dollar of revenue that is being cut today. Let me repeat that, so it is
very clear. Every. Single. Dollar. The Republican budget never really
balanced in March, and it certainly does not balance now.
Here are some things which the PATH Act does not do: it does not
close the loophole giving a lower tax rate to hedge funds managers; it
does not close the inversion loophole allowing companies to dodge their
taxes just by changing their mailing address; it does not end all the
tax subsidies for the oil and gas industry; and it does not touch the
17% of all tax expenditures that go to the top 1% of earners. We could
have significantly reduced the lost revenue if we closed these and
other special interest tax loopholes, and failure to do so is another
missed opportunity.
So, next time Republicans come to the floor claiming that they care
about fiscal discipline, let's all be reminded of just what happened
today--more budget gimmickry that doesn't pass the smell test.
The SPEAKER pro tempore. All time for debate has expired.
Pursuant to House Resolution 566, the previous question is ordered on
this portion of the divided question.
The question is: Will the House concur in the Senate amendment with
the House amendment specified in session 3(b) of House Resolution 566?
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Mr. LEVIN. 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 318,
nays 109, not voting 6, as follows:
[Roll No. 703]
YEAS--318
Abraham
Aderholt
Aguilar
Allen
Amodei
Ashford
Babin
Barletta
Barr
Barton
Beatty
Benishek
Bera
Bilirakis
Bishop (GA)
Bishop (MI)
Bishop (UT)
Black
Blackburn
Blum
Blumenauer
Bonamici
Bost
Boustany
Boyle, Brendan F.
Brady (TX)
Brat
Bridenstine
Brooks (AL)
Brooks (IN)
Brownley (CA)
Buchanan
Buck
Bucshon
Burgess
Bustos
Byrne
Calvert
Capuano
Carter (GA)
Carter (TX)
Chabot
Chaffetz
Cicilline
Clark (MA)
Clawson (FL)
Cleaver
Coffman
Cohen
Cole
Collins (GA)
Comstock
Conaway
Connolly
Cook
Costa
Costello (PA)
Courtney
Cramer
Crawford
Crenshaw
Crowley
Culberson
Curbelo (FL)
Davis, Rodney
Delaney
DeLauro
DelBene
Denham
Dent
DeSantis
DesJarlais
Diaz-Balart
Dold
Donovan
Duckworth
Duffy
Duncan (SC)
Duncan (TN)
Ellmers (NC)
Emmer (MN)
Engel
Esty
Farenthold
Fincher
Fitzpatrick
Fleischmann
Fleming
Flores
Forbes
Fortenberry
Foxx
Franks (AZ)
Frelinghuysen
Gabbard
Garamendi
Garrett
Gibbs
Gibson
Gohmert
Goodlatte
Gosar
Gowdy
Graham
Granger
Graves (GA)
Graves (LA)
Graves (MO)
Green, Al
Green, Gene
Griffith
Grothman
Guinta
Guthrie
Hahn
Hanna
Hardy
Harper
Harris
Hartzler
Heck (NV)
Heck (WA)
Hensarling
Herrera Beutler
Hice, Jody B.
Higgins
Hill
Hinojosa
Holding
Hudson
Huelskamp
Huizenga (MI)
Hultgren
Hunter
Hurd (TX)
Hurt (VA)
Issa
Jenkins (KS)
Jenkins (WV)
Johnson (OH)
[[Page H9433]]
Johnson, E. B.
Johnson, Sam
Jolly
Jordan
Kaptur
Katko
Keating
Kelly (MS)
Kelly (PA)
Kilmer
King (IA)
King (NY)
Kinzinger (IL)
Kirkpatrick
Kline
Knight
Kuster
Labrador
LaHood
LaMalfa
Lamborn
Lance
Langevin
Larson (CT)
Latta
LoBiondo
Loebsack
Long
Loudermilk
Love
Lowey
Lucas
Luetkemeyer
Lujan Grisham (NM)
Lummis
Lynch
MacArthur
Maloney, Carolyn
Maloney, Sean
Marchant
Marino
Massie
McCarthy
McCaul
McClintock
McGovern
McHenry
McKinley
McMorris Rodgers
McNerney
McSally
Meadows
Meehan
Meeks
Meng
Messer
Mica
Miller (FL)
Miller (MI)
Moolenaar
Mooney (WV)
Moulton
Mullin
Mulvaney
Murphy (FL)
Murphy (PA)
Neal
Neugebauer
Newhouse
Noem
Nolan
Norcross
Nugent
Nunes
Olson
Palazzo
Palmer
Pascrell
Paulsen
Pearce
Perry
Peters
Peterson
Pingree
Pittenger
Pitts
Poe (TX)
Poliquin
Pompeo
Posey
Price (NC)
Price, Tom
Quigley
Ratcliffe
Reed
Reichert
Renacci
Ribble
Rice (NY)
Rice (SC)
Rigell
Roby
Roe (TN)
Rogers (AL)
Rogers (KY)
Rohrabacher
Rokita
Rooney (FL)
Ros-Lehtinen
Roskam
Ross
Rothfus
Rouzer
Royce
Ruiz
Ruppersberger
Russell
Ryan (OH)
Salmon
Sanford
Scalise
Schweikert
Scott, Austin
Scott, David
Sensenbrenner
Sessions
Sherman
Shimkus
Shuster
Simpson
Sinema
Sires
Smith (MO)
Smith (NE)
Smith (NJ)
Smith (TX)
Stefanik
Stewart
Stivers
Stutzman
Swalwell (CA)
Takai
Thompson (PA)
Thornberry
Tiberi
Tipton
Titus
Trott
Turner
Upton
Valadao
Veasey
Vela
Wagner
Walberg
Walden
Walker
Walorski
Walters, Mimi
Walz
Weber (TX)
Webster (FL)
Wenstrup
Westerman
Westmoreland
Whitfield
Williams
Wilson (SC)
Wittman
Womack
Woodall
Yoder
Yoho
Young (AK)
Young (IA)
Young (IN)
Zeldin
Zinke
NAYS--109
Adams
Amash
Bass
Becerra
Beyer
Brady (PA)
Brown (FL)
Butterfield
Capps
Cardenas
Carney
Carson (IN)
Cartwright
Castor (FL)
Castro (TX)
Chu, Judy
Clarke (NY)
Clay
Clyburn
Collins (NY)
Conyers
Cooper
Cummings
Davis (CA)
Davis, Danny
DeFazio
DeGette
DeSaulnier
Dingell
Doggett
Doyle, Michael F.
Edwards
Ellison
Eshoo
Farr
Fattah
Foster
Frankel (FL)
Fudge
Gallego
Grayson
Grijalva
Gutierrez
Hastings
Himes
Honda
Hoyer
Huffman
Israel
Jackson Lee
Jeffries
Johnson (GA)
Jones
Kelly (IL)
Kind
Larsen (WA)
Lawrence
Lee
Levin
Lewis
Lieu, Ted
Lipinski
Lofgren
Lowenthal
Lujan, Ben Ray (NM)
Matsui
McCollum
McDermott
Moore
Napolitano
O'Rourke
Pallone
Payne
Pelosi
Perlmutter
Pocan
Polis
Rangel
Richmond
Roybal-Allard
Rush
Sanchez, Linda T.
Sanchez, Loretta
Sarbanes
Schakowsky
Schiff
Schrader
Scott (VA)
Serrano
Sewell (AL)
Slaughter
Smith (WA)
Speier
Takano
Thompson (CA)
Thompson (MS)
Tonko
Torres
Tsongas
Van Hollen
Vargas
Velazquez
Visclosky
Wasserman Schultz
Waters, Maxine
Watson Coleman
Welch
Wilson (FL)
Yarmuth
NOT VOTING--6
Cuellar
Deutch
Joyce
Kennedy
Kildee
Nadler
{time} 1300
Ms. SLAUGHTER changed her vote from ``yea'' to ``nay.''
So the first portion of the divided question was adopted.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.
The SPEAKER pro tempore. Pursuant to clause 1(c) of rule XIX, further
consideration of the pending motion is postponed.
____________________