[Congressional Record Volume 170, Number 80 (Wednesday, May 8, 2024)]
[Senate]
[Pages S3607-S3615]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2052. Mr. WYDEN submitted an amendment intended to be proposed by 
him to the bill H.R. 3935, to amend title 49, United States Code, to 
reauthorize and improve the Federal Aviation Administration and other 
civil aviation programs, and for other purposes; which was ordered to 
lie on the table; as follows:

       At the appropriate place, insert the following:

                         DIVISION B--TAX RELIEF

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS; ETC.

       (a) Short Title.--This division may be cited as the ``Tax 
     Relief for American Families and Workers Act of 2024''.
       (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 of this 
     division is as follows:

Sec. 1. Short title; table of contents; etc.

                TITLE I--TAX RELIEF FOR WORKING FAMILIES

Sec. 101. Per-child calculation of refundable portion of child tax 
              credit.
Sec. 102. Increase in refundable portion.
Sec. 103. Inflation of credit amount.
Sec. 104. Rule for determination of earned income.
Sec. 105. Special rule for certain early-filed 2023 returns.

                TITLE II--AMERICAN INNOVATION AND GROWTH

Sec. 201. Deduction for domestic research and experimental 
              expenditures.
Sec. 202. Extension of allowance for depreciation, amortization, or 
              depletion in determining the limitation on business 
              interest.
Sec. 203. Extension of 100 percent bonus depreciation.
Sec. 204. Increase in limitations on expensing of depreciable business 
              assets.

              TITLE III--INCREASING GLOBAL COMPETITIVENESS

    Subtitle A--United States-Taiwan Expedited Double-Tax Relief Act

Sec. 301. Short title.
Sec. 302. Special rules for taxation of certain residents of Taiwan.

    Subtitle B--United States-Taiwan Tax Agreement Authorization Act

Sec. 311. Short title.
Sec. 312. Definitions.
Sec. 313. Authorization to negotiate and enter into agreement.
Sec. 314. Consultations with Congress.
Sec. 315. Approval and implementation of agreement.
Sec. 316. Submission to Congress of agreement and implementation 
              policy.
Sec. 317. Consideration of approval legislation and implementing 
              legislation.
Sec. 318. Relationship of agreement to Internal Revenue Code of 1986.
Sec. 319. Authorization of subsequent tax agreements relative to 
              Taiwan.
Sec. 320. United States treatment of double taxation matters with 
              respect to Taiwan.

         TITLE IV--ASSISTANCE FOR DISASTER-IMPACTED COMMUNITIES

Sec. 401. Short title.
Sec. 402. Extension of rules for treatment of certain disaster-related 
              personal casualty losses.
Sec. 403. Exclusion from gross income for compensation for losses or 
              damages resulting from certain wildfires.
Sec. 404. East Palestine disaster relief payments.

                    TITLE V--MORE AFFORDABLE HOUSING

Sec. 501. State housing credit ceiling increase for low-income housing 
              credit.
Sec. 502. Tax-exempt bond financing requirement.

           TITLE VI--TAX ADMINISTRATION AND ELIMINATING FRAUD

Sec. 601. Increase in threshold for requiring information reporting 
              with respect to certain payees.
Sec. 602. Enforcement provisions with respect to COVID-related employee 
              retention credits.

                TITLE I--TAX RELIEF FOR WORKING FAMILIES

     SEC. 101. PER-CHILD CALCULATION OF REFUNDABLE PORTION OF 
                   CHILD TAX CREDIT.

       (a) In General.--Subparagraph (A) of section 24(h)(5) is 
     amended to read as follows:
       ``(A) In general.--In applying subsection (d)--
       ``(i) the amount determined under paragraph (1)(A) of such 
     subsection with respect to any qualifying child shall not 
     exceed $1,400, and such paragraph shall be applied without 
     regard to paragraph (4) of this subsection, and
       ``(ii) paragraph (1)(B) of such subsection shall be applied 
     by multiplying each of--

       ``(I) the amount determined under clause (i) thereof, and
       ``(II) the excess determined under clause (ii) thereof,

     by the number of qualifying children of the taxpayer.''.
       (b) Conforming Amendment.--The heading of paragraph (5) of 
     section 24(h) is amended by striking ``Maximum amount of'' 
     and inserting ``Special rules for''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2022.

     SEC. 102. INCREASE IN REFUNDABLE PORTION.

       (a) In General.--Paragraph (5) of section 24(h) is amended 
     by redesignating subparagraph (B) as subparagraph (C) and by 
     inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B) Amounts for 2023, 2024, and 2025.--In the case of a 
     taxable year beginning after 2022, subparagraph (A) shall be 
     applied by substituting for `$1,400'--
       ``(i) in the case of taxable year 2023, `$1,800',
       ``(ii) in the case of taxable year 2024, `$1,900', and
       ``(iii) in the case of taxable year 2025, `$2,000'.''.
       (b) Conforming Amendment.--Subparagraph (C) of section 
     24(h)(5), as redesignated by subsection (a), is amended by 
     inserting ``and before 2023'' after ``2018''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2022.

     SEC. 103. INFLATION OF CREDIT AMOUNT.

       (a) In General.--Paragraph (2) of section 24(h) is 
     amended--
       (1) by striking ``amount.--Subsection'' and inserting 
     ``amount.--
       ``(A) In general.--Subsection'', and
       (2) by adding at the end the following new subparagraph:
       ``(B) Adjustment for inflation.--In the case of a taxable 
     year beginning after 2023, the $2,000 amounts in subparagraph 
     (A) and paragraph (5)(B)(iii) 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 `2022' for `2016' in 
     subparagraph (A)(ii) thereof.
     If any increase under this subparagraph is not a multiple of 
     $100, such increase shall be rounded to the next lowest 
     multiple of $100.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2023.

     SEC. 104. RULE FOR DETERMINATION OF EARNED INCOME.

       (a) In General.--Paragraph (6) of section 24(h) of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking ``credit.--Subsection'' and inserting 
     ``credit.--
       ``(A) In general.--Subsection'', and
       (2) by adding at the end the following new subparagraphs
       ``(B) Rule for determination of earned income.--
       ``(i) In general.--In the case of a taxable year beginning 
     after 2023, if the earned income of the taxpayer for such 
     taxable year is less than the earned income of the taxpayer 
     for the preceding taxable year, subsection (d)(1)(B)(i) may, 
     at the election of the taxpayer, be applied by substituting--

       ``(I) the earned income for such preceding taxable year, 
     for
       ``(II) the earned income for the current taxable year.

       ``(ii) Application to joint returns.--For purposes of 
     clause (i), in the case of a joint return, the earned income 
     of the taxpayer for the preceding taxable year shall be the 
     sum of the earned income of each spouse for such preceding 
     taxable year.''.
       (b) Errors Treated as Mathematical Errors.--Paragraph (2) 
     of section 6213(g) of the Internal Revenue Code of 1986 is 
     amended by striking ``and'' at the end of subparagraph (U), 
     by striking the period at the end of subparagraph (V) and 
     inserting ``, and'', and by inserting after subparagraph (V) 
     the following new subparagraph:
       ``(W) in the case of a taxpayer electing the application of 
     section 24(h)(6)(B) for any taxable year, an entry on a 
     return of earned income pursuant to such section which is 
     inconsistent with the amount of such earned income determined 
     by the Secretary for the preceding taxable year.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2023.

[[Page S3608]]

  


     SEC. 105. SPECIAL RULE FOR CERTAIN EARLY-FILED 2023 RETURNS.

       In the case of an individual who claims, on the taxpayer's 
     return of tax for the first taxable year beginning after 
     December 31, 2022, a credit under section 24 of the Internal 
     Revenue Code of 1986 which is determined without regard to 
     the amendments made by sections 101 and 102 of this division, 
     the Secretary of the Treasury (or the Secretary's delegate) 
     shall, to the maximum extent practicable--
       (1) redetermine the amount of such credit (after taking 
     into account such amendments) on the basis of the information 
     provided by the taxpayer on such return, and
       (2) to the extent that such redetermination results in an 
     overpayment of tax, credit or refund such overpayment as 
     expeditiously as possible.

                TITLE II--AMERICAN INNOVATION AND GROWTH

     SEC. 201. DEDUCTION FOR DOMESTIC RESEARCH AND EXPERIMENTAL 
                   EXPENDITURES.

       (a) Delay of Amortization of Domestic Research and 
     Experimental Expenditures.--Section 174 is amended by adding 
     at the end the following new subsection:
       ``(e) Suspension of Application of Section to Domestic 
     Research and Experimental Expenditures.--In the case of any 
     domestic research or experimental expenditures (as defined in 
     section 174A(b)), this section--
       ``(1) shall apply to such expenditures paid or incurred in 
     taxable years beginning after December 31, 2025, and
       ``(2) shall not apply to such expenditures paid or incurred 
     in taxable years beginning on or before such date.''.
       (b) Reinstatement of Expensing for Domestic Research and 
     Experimental Expenditures.--Part VI of subchapter B of 
     chapter 1 is amended by inserting after section 174 the 
     following new section:

     ``SEC. 174A. TEMPORARY RULES FOR DOMESTIC RESEARCH AND 
                   EXPERIMENTAL EXPENDITURES.

       ``(a) Treatment as Expenses.--Notwithstanding section 263, 
     there shall be allowed as a deduction any domestic research 
     or experimental expenditures which are paid or incurred by 
     the taxpayer during the taxable year.
       ``(b) Domestic Research or Experimental Expenditures.--For 
     purposes of this section, the term `domestic research or 
     experimental expenditures' means research or experimental 
     expenditures paid or incurred by the taxpayer in connection 
     with the taxpayer's trade or business other than such 
     expenditures which are attributable to foreign research 
     (within the meaning of section 41(d)(4)(F)).
       ``(c) Amortization of Certain Domestic Research and 
     Experimental Expenditures.--
       ``(1) In general.--At the election of the taxpayer, made in 
     accordance with regulations or other guidance provided by the 
     Secretary, in the case of domestic research or experimental 
     expenditures which would (but for subsection (a)) be 
     chargeable to capital account but not chargeable to property 
     of a character which is subject to the allowance under 
     section 167 (relating to allowance for depreciation, etc.) or 
     section 611 (relating to allowance for depletion), subsection 
     (a) shall not apply and the taxpayer shall--
       ``(A) charge such expenditures to capital account, and
       ``(B) be allowed an amortization deduction of such 
     expenditures ratably over such period of not less than 60 
     months as may be selected by the taxpayer (beginning with the 
     month in which the taxpayer first realizes benefits from such 
     expenditures).
       ``(2) Time for and scope of election.--The election 
     provided by paragraph (1) may be made for any taxable year, 
     but only if made not later than the time prescribed by law 
     for filing the return for such taxable year (including 
     extensions thereof). The method so elected, and the period 
     selected by the taxpayer, shall be adhered to in computing 
     taxable income for the taxable year for which the election is 
     made and for all subsequent taxable years unless, with the 
     approval of the Secretary, a change to a different method (or 
     to a different period) is authorized with respect to part or 
     all of such expenditures. The election shall not apply to any 
     expenditure paid or incurred during any taxable year before 
     the taxable year for which the taxpayer makes the election.
       ``(d) Election to Capitalize Expenses.--In the case of a 
     taxpayer which elects (at such time and in such manner as the 
     Secretary may provide) the application of this subsection, 
     subsections (a) and (c) shall not apply and domestic research 
     or experimental expenditures shall be chargeable to capital 
     account. Such election shall not apply to any expenditure 
     paid or incurred during any taxable year before the taxable 
     year for which the taxpayer makes the election and may be 
     made with respect to part of the expenditures paid or 
     incurred during any taxable year only with the approval of 
     the Secretary.
       ``(e) Special Rules.--
       ``(1) Land and other property.--This section shall not 
     apply to any expenditure for the acquisition or improvement 
     of land, or for the acquisition or improvement of property to 
     be used in connection with the research or experimentation 
     and of a character which is subject to the allowance under 
     section 167 (relating to allowance for depreciation, etc.) or 
     section 611 (relating to allowance for depletion); but for 
     purposes of this section allowances under section 167, and 
     allowances under section 611, shall be considered as 
     expenditures.
       ``(2) Exploration expenditures.--This section shall not 
     apply to any expenditure paid or incurred for the purpose of 
     ascertaining the existence, location, extent, or quality of 
     any deposit of ore or other mineral (including oil and gas).
       ``(3) Software development.--For purposes of this section, 
     any amount paid or incurred in connection with the 
     development of any software shall be treated as a research or 
     experimental expenditure.
       ``(f) Termination.--
       ``(1) In general.--This section shall not apply to amounts 
     paid or incurred in taxable years beginning after December 
     31, 2025.
       ``(2) Change in method of accounting.--In the case of a 
     taxpayer's first taxable year beginning after December 31, 
     2025, paragraph (1) (and the corresponding application of 
     section 174) shall be treated as a change in method of 
     accounting for purposes of section 481 and--
       ``(A) such change shall be treated as initiated by the 
     taxpayer,
       ``(B) such change shall be treated as made with the consent 
     of the Secretary, and
       ``(C) such change shall be applied only on a cut-off basis 
     for any domestic research or experimental expenditures paid 
     or incurred in taxable years beginning after December 31, 
     2025, and no adjustment under section 481(a) shall be 
     made.''.
       (c) Coordination With Certain Other Provisions.--
       (1) Research credit.--
       (A) Section 41(d)(1)(A) is amended by inserting ``or 
     domestic research or experimental expenditures under section 
     174A'' after ``section 174''.
       (B) Section 280C(c)(1) is amended to read as follows:
       ``(1) In general.--The domestic research or experimental 
     expenditures otherwise taken into account under section 174 
     or 174A (as the case may be) shall be reduced by the amount 
     of the credit allowed under section 41(a).''.
       (2) AMT adjustment.--Section 56(b)(2) is amended by 
     striking ``174(a)'' each place it appears and inserting 
     ``174A(a)''.
       (3) Optional 10-year writeoff.--Section 59(e)(2)(B) is 
     amended by striking ``section 174(a) (relating to research 
     and experimental expenditures)'' and inserting ``section 
     174A(a) (relating to temporary rules for domestic research 
     and experimental expenditures)''.
       (4) Qualified small issue bonds.--Section 144(a)(4)(C)(iv) 
     is amended by striking ``174(a)'' and inserting ``174A(a)''.
       (5) Start-up expenditures.--Section 195(c)(1) is amended by 
     striking ``or 174'' in the last sentence and inserting ``174, 
     or 174A''.
       (6) Capital expenditures.--
       (A) Section 263(a)(1)(B) is amended by inserting `` or 
     174A'' after ``174''.
       (B) Section 263A(c)(2) is amended by inserting ``or 174A'' 
     after ``174''.
       (7) Active business computer software royalties.--Section 
     543(d)(4)(A)(i) is amended by inserting ``174A,'' after 
     ``174,''.
       (8) Source rules.--Section 864(g)(2) is amended in the last 
     sentence--
       (A) by striking ``treated as deferred expenses under 
     subsection (b) of section 174'' and inserting ``allowed as an 
     amortization deduction under section 174(a) or section 
     174A(c),'', and
       (B) by striking ``such subsection'' and inserting ``such 
     section (as the case may be)''.
       (9) Basis adjustment.--Section 1016(a)(14) is amended by 
     striking ``deductions as deferred expenses under section 
     174(b)(1) (relating to research and experimental 
     expenditures)'' and inserting ``deductions under section 174 
     or 174A''.
       (10) Small business stock.--Section 1202(e)(2)(B) is 
     amended by striking ``research and experimental expenditures 
     under section 174'' and inserting ``specified research or 
     experimental expenditures under section 174 or domestic 
     research or experimental expenditures under section 174A''.
       (d) Conforming Amendments.--
       (1) Section 13206 of Public Law 115-97 is amended by 
     striking subsection (b) (relating to change in method of 
     accounting).
       (2) The table of sections for part VI of subchapter B of 
     chapter 1 is amended by inserting after the item relating to 
     section 174 the following new item:

``Sec. 174A. Temporary rules for domestic research and experimental 
              expenditures.''.
       (e) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to amounts paid or incurred in taxable years beginning after 
     December 31, 2021.
       (2) Coordination with research credit.--The amendment made 
     by subsection (c)(1)(B) shall apply to taxable years 
     beginning after December 31, 2022.
       (3) Repeal of superceded change in method of accounting 
     rules.--The amendment made by subsection (d)(1) shall take 
     effect as if included in Public Law 115-97.
       (4) No inference with respect to coordination with research 
     credit for prior periods.--The amendment made by subsection 
     (c)(1)(B) shall not be construed to create any inference with 
     respect to the proper application of section 280C(c) of the 
     Internal Revenue Code of 1986 with respect to taxable years 
     beginning before January 1, 2023.
       (f) Transition Rules.--
       (1) In general.--Except as otherwise provided by the 
     Secretary, an election made

[[Page S3609]]

     under subsection (c) or (d) of section 174A of the Internal 
     Revenue Code of 1986 (as added by this section) for the 
     taxpayer's first taxable year beginning after December 31, 
     2021, shall not fail to be treated as timely made (or as made 
     on the return) if made during the 1-year period beginning on 
     the date of the enactment of this Act on an amended return 
     for the taxpayer's first taxable year beginning after 
     December 31, 2021, or in such other manner as the Secretary 
     may provide.
       (2) Election regarding treatment as change in method of 
     accounting.--In the case of any taxpayer which (as of the 
     date of the enactment of this Act) had adopted a method of 
     accounting provided by section 174 of the Internal Revenue 
     Code of 1986 (as in effect prior to the amendments made by 
     this section) for the taxpayer's first taxable year beginning 
     after December 31, 2021, and elects the application of this 
     paragraph--
       (A) the amendments made by this section shall be treated as 
     a change in method of accounting for purposes of section 481 
     of such Code,
       (B) such change shall be treated as initiated by the 
     taxpayer for the taxpayer's immediately succeeding taxable 
     year,
       (C) such change shall be treated as made with the consent 
     of the Secretary,
       (D) such change shall be applied on a modified cut-off 
     basis, taking into account for purposes of section 481(a) of 
     such Code only the domestic research or experimental 
     expenditures (as defined in section 174A(b) of such Code (as 
     added by this section) and determined by applying the rules 
     of section 174A(e) of such Code) paid or incurred in the 
     taxpayer's first taxable year beginning after December 31, 
     2021, and not allowed as a deduction in such taxable year, 
     and
       (E) in the case of a taxpayer which elects the application 
     of this subparagraph, the amount of such change (as 
     determined under subparagraph (D)) shall be taken into 
     account ratably over the 2-taxable-year period beginning with 
     the taxable year referred to in subparagraph (B).
       (3) Election regarding 10-year writeoff.--
       (A) In general.--Except as otherwise provided by the 
     Secretary, an eligible taxpayer which files, during the 1-
     year period beginning on the date of the enactment of this 
     Act, an amended income tax return for the taxable year 
     described in subparagraph (B)(ii) may elect the application 
     of section 59(e) of the Internal Revenue Code of 1986 with 
     respect to qualified expenditures described in section 
     59(e)(2)(B) of such Code (as amended by subsection (c)(3)) 
     with respect to such taxable year. Such election shall be 
     filed with such amended income tax return and shall be 
     effective only to the extent that such election would have 
     been effective if filed with the original income tax return 
     for such taxable year (determined after taking into account 
     the amendment made by subsection (c)(3)).
       (B) Eligible taxpayer.--For purposes of subparagraph (A), 
     the term ``eligible taxpayer'' means any taxpayer which--
       (i) does not elect the application of paragraph (2), and
       (ii) filed an income tax return for such taxpayer's first 
     taxable year beginning after December 31, 2021, before the 
     earlier of--

       (I) the due date for such return, and
       (II) the date of the enactment of this Act.

       (4) Election regarding coordination with research credit.--
     Except as otherwise provided by the Secretary, an eligible 
     taxpayer (as defined in paragraph (3)(B) without regard to 
     clause (i) thereof) which files, during the 1-year period 
     beginning on the date of the enactment of this Act, an 
     amended income tax return for the taxpayer's first taxable 
     year beginning after December 31, 2021, may, notwithstanding 
     subparagraph (C) of section 280C(c)(2) of the Internal 
     Revenue Code of 1986 make, or revoke, on such amended return 
     the election under such section for such taxable year.

     SEC. 202. EXTENSION OF ALLOWANCE FOR DEPRECIATION, 
                   AMORTIZATION, OR DEPLETION IN DETERMINING THE 
                   LIMITATION ON BUSINESS INTEREST.

       (a) In General.--Section 163(j)(8)(A)(v) is amended by 
     striking ``January 1, 2022'' and inserting ``January 1, 
     2026''.
       (b) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendment made by this section shall apply to 
     taxable years beginning after December 31, 2023.
       (2) Election to apply extension retroactively.--In the case 
     of a taxpayer which elects (at such time and in such manner 
     as the Secretary may provide) the application of this 
     paragraph, paragraph (1) shall be applied by substituting 
     ``December 31, 2021'' for ``December 31, 2023''.

     SEC. 203. EXTENSION OF 100 PERCENT BONUS DEPRECIATION.

       (a) In General.--Section 168(k)(6)(A) is amended--
       (1) in clause (i)--
       (A) by striking ``2023'' and inserting ``2026'', and
       (B) by adding ``and'' at the end, and
       (2) by striking clauses (ii), (iii), and (iv), and 
     redesignating clause (v) as clause (ii).
       (b) Property With Longer Production Periods.--Section 
     168(k)(6)(B) is amended--
       (1) in clause (i)--
       (A) by striking ``2024'' and inserting ``2027'', and
       (B) by adding ``and'' at the end, and
       (2) by striking clauses (ii), (iii), and (iv), and 
     redesignating clause (v) as clause (ii).
       (c) Plants Bearing Fruits and Nuts.--Section 168(k)(6)(C) 
     is amended--
       (1) in clause (i)--
       (A) by striking ``2023'' and inserting ``2026'', and
       (B) by adding ``and'' at the end, and
       (2) by striking clauses (ii), (iii), and (iv), and 
     redesignating clause (v) as clause (ii).
       (d) Effective Dates.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to property placed in service after December 31, 2022.
       (2) Plants bearing fruits and nuts.--The amendments made by 
     subsection (c) shall apply to specified plants planted or 
     grafted after December 31, 2022.

     SEC. 204. INCREASE IN LIMITATIONS ON EXPENSING OF DEPRECIABLE 
                   BUSINESS ASSETS.

       (a) In General.--Section 179(b) is amended--
       (1) by striking ``$1,000,000'' in paragraph (1) and 
     inserting ``$1,290,000'', and
       (2) by striking ``$2,500,000'' in paragraph (2) and 
     inserting ``$3,220,000''.
       (b) Inflation Adjustment.--Section 179(b)(6) is amended--
       (1) by striking ``2018'' and inserting ``2024 (2018 in the 
     case of the dollar amount in paragraph (5)(A))'', and
       (2) by striking `` `calendar year 2017'' and inserting `` 
     `calendar year 2024' (`calendar year 2017' in the case of the 
     dollar amount in paragraph (5)(A))''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service in taxable years 
     beginning after December 31, 2023.

              TITLE III--INCREASING GLOBAL COMPETITIVENESS

    Subtitle A--United States-Taiwan Expedited Double-Tax Relief Act

     SEC. 301. SHORT TITLE.

       This subtitle may be cited as the ``United States-Taiwan 
     Expedited Double-Tax Relief Act''.

     SEC. 302. SPECIAL RULES FOR TAXATION OF CERTAIN RESIDENTS OF 
                   TAIWAN.

       (a) In General.--Subpart D of part II of subchapter N of 
     chapter 1 is amended by inserting after section 894 the 
     following new section:

     ``SEC. 894A. SPECIAL RULES FOR QUALIFIED RESIDENTS OF TAIWAN.

       ``(a) Certain Income From United States Sources.--
       ``(1) Interest, dividends, and royalties, etc.--
       ``(A) In general.--In the case of interest (other than 
     original issue discount), dividends, royalties, amounts 
     described in section 871(a)(1)(C), and gains described in 
     section 871(a)(1)(D) received by or paid to a qualified 
     resident of Taiwan--
       ``(i) sections 871(a), 881(a), 1441(a), 1441(c)(5), and 
     1442(a) shall each be applied by substituting `the applicable 
     percentage (as defined in section 894A(a)(1)(C))' for `30 
     percent' each place it appears, and
       ``(ii) sections 871(a), 881(a), and 1441(c)(1) shall each 
     be applied by substituting `a United States permanent 
     establishment of a qualified resident of Taiwan' for `a trade 
     or business within the United States' each place it appears.
       ``(B) Exceptions.--
       ``(i) In general.--Subparagraph (A) shall not apply to--

       ``(I) any dividend received from or paid by a real estate 
     investment trust which is not a qualified REIT dividend,
       ``(II) any amount subject to section 897,
       ``(III) any amount received from or paid by an expatriated 
     entity (as defined in section 7874(a)(2)) to a foreign 
     related person (as defined in section 7874(d)(3)), and
       ``(IV) any amount which is included in income under section 
     860C to the extent that such amount does not exceed an excess 
     inclusion with respect to a REMIC.

       ``(ii) Qualified reit dividend.--For purposes of clause 
     (i)(I), the term `qualified REIT dividend' means any dividend 
     received from or paid by a real estate investment trust if 
     such dividend is paid with respect to a class of shares that 
     is publicly traded and the recipient of the dividend is a 
     person who holds an interest in any class of shares of the 
     real estate investment trust of not more than 5 percent.
       ``(C) Applicable percentage.--For purposes of applying 
     subparagraph (A)(i)--
       ``(i) In general.--Except as provided in clause (ii), the 
     term `applicable percentage' means 10 percent.
       ``(ii) Special rules for dividends.-- In the case of any 
     dividend in respect of stock received by or paid to a 
     qualified resident of Taiwan, the applicable percentage shall 
     be 15 percent (10 percent in the case of a dividend which 
     meets the requirements of subparagraph (D) and is received by 
     or paid to an entity taxed as a corporation in Taiwan).
       ``(D) Requirements for lower dividend rate.--
       ``(i) In general.--The requirements of this subparagraph 
     are met with respect to any dividend in respect of stock in a 
     corporation if, at all times during the 12-month period 
     ending on the date such stock becomes ex-dividend with 
     respect to such dividend--

       ``(I) the dividend is derived by a qualified resident of 
     Taiwan, and
       ``(II) such qualified resident of Taiwan has held directly 
     at least 10 percent (by vote and

[[Page S3610]]

     value) of the total outstanding shares of stock in such 
     corporation.

     For purposes of subclause (II), a person shall be treated as 
     directly holding a share of stock during any period described 
     in the preceding sentence if the share was held by a 
     corporation from which such person later acquired that share 
     and such corporation was, at the time the share was acquired, 
     both a connected person to such person and a qualified 
     resident of Taiwan.
       ``(ii) Exception for rics and reits.--Notwithstanding 
     clause (i), the requirements of this subparagraph shall not 
     be treated as met with respect to any dividend paid by a 
     regulated investment company or a real estate investment 
     trust.
       ``(2) Qualified wages.--
       ``(A) In general.--No tax shall be imposed under this 
     chapter (and no amount shall be withheld under section 
     1441(a) or chapter 24) with respect to qualified wages paid 
     to a qualified resident of Taiwan who--
       ``(i) is not a resident of the United States (determined 
     without regard to subsection (c)(3)(E)), or
       ``(ii) is employed as a member of the regular component of 
     a ship or aircraft operated in international traffic.
       ``(B) Qualified wages.--
       ``(i) In general.--The term `qualified wages' means wages, 
     salaries, or similar remunerations with respect to employment 
     involving the performance of personal services within the 
     United States which--

       ``(I) are paid by (or on behalf of) any employer other than 
     a United States person, and
       ``(II) are not borne by a United States permanent 
     establishment of any person other than a United States 
     person.

       ``(ii) Exceptions.--Such term shall not include directors' 
     fees, income derived as an entertainer or athlete, income 
     derived as a student or trainee, pensions, amounts paid with 
     respect to employment with the United States, any State (or 
     political subdivision thereof), or any possession of the 
     United States (or any political subdivision thereof), or 
     other amounts specified in regulations or guidance under 
     subsection (f)(1)(F).
       ``(3) Income derived from entertainment or athletic 
     activities.--
       ``(A) In general.--No tax shall be imposed under this 
     chapter (and no amount shall be withheld under section 
     1441(a) or chapter 24) with respect to income derived by an 
     entertainer or athlete who is a qualified resident of Taiwan 
     from personal activities as such performed in the United 
     States if the aggregate amount of gross receipts from such 
     activities for the taxable year do not exceed $30,000.
       ``(B) Exception.--Subparagraph (A) shall not apply with 
     respect to--
       ``(i) income which is qualified wages (as defined in 
     paragraph (2)(B), determined without regard to clause (ii) 
     thereof), or
       ``(ii) income which is effectively connected with a United 
     States permanent establishment.
       ``(b) Income Connected With a United States Permanent 
     Establishment of a Qualified Resident of Taiwan.--
       ``(1) In general.--
       ``(A) In general.--In lieu of applying sections 871(b) and 
     882, a qualified resident of Taiwan that carries on a trade 
     or business within the United States through a United States 
     permanent establishment shall be taxable as provided in 
     section 1, 11, 55, or 59A, on its taxable income which is 
     effectively connected with such permanent establishment.
       ``(B) Determination of taxable income.--In determining 
     taxable income for purposes of paragraph (1), gross income 
     includes only gross income which is effectively connected 
     with the permanent establishment.
       ``(2) Treatment of dispositions of united states real 
     property.--In the case of a qualified resident of Taiwan, 
     section 897(a) shall be applied--
       ``(A) by substituting `carried on a trade or business 
     within the United States through a United States permanent 
     establishment' for `were engaged in a trade or business 
     within the United States', and
       ``(B) by substituting `such United States permanent 
     establishment' for `such trade or business'.
       ``(3) Treatment of branch profits taxes.--In the case of 
     any corporation which is a qualified resident of Taiwan, 
     section 884 shall be applied--
       ``(A) by substituting `10 percent' for `30 percent ' in 
     subsection (a) thereof, and
       ``(B) by substituting `a United States permanent 
     establishment of a qualified resident of Taiwan' for `the 
     conduct of a trade or business within the United States' in 
     subsection (d)(1) thereof.
       ``(4) Special rule with respect to income derived from 
     certain entertainment or athletic activities.--
       ``(A) In general.--Paragraph (1) shall not apply to the 
     extent that the income is derived--
       ``(i) in respect of entertainment or athletic activities 
     performed in the United States, and
       ``(ii) by a qualified resident of Taiwan who is not the 
     entertainer or athlete performing such activities.
       ``(B) Exception.--Subparagraph (A) shall not apply if the 
     person described in subparagraph (A)(ii) is contractually 
     authorized to designate the individual who is to perform such 
     activities.
       ``(5) Special rule with respect to certain amounts.--
     Paragraph (1) shall not apply to any income which is wages, 
     salaries, or similar remuneration with respect to employment 
     or with respect to any amount which is described in 
     subsection (a)(2)(B)(ii).
       ``(c) Qualified Resident of Taiwan.--For purposes of this 
     section--
       ``(1) In general.--The term `qualified resident of Taiwan' 
     means any person who--
       ``(A) is liable to tax under the laws of Taiwan by reason 
     of such person's domicile, residence, place of management, 
     place of incorporation, or any similar criterion,
       ``(B) is not a United States person (determined without 
     regard to paragraph (3)(E)), and
       ``(C) in the case of an entity taxed as a corporation in 
     Taiwan, meets the requirements of paragraph (2).
       ``(2) Limitation on benefits for corporate entities of 
     taiwan.--
       ``(A) In general.--Subject to subparagraphs (E) and (F), an 
     entity meets the requirements of this paragraph only if it--
       ``(i) meets the ownership and income requirements of 
     subparagraph (B),
       ``(ii) meets the publicly traded requirements of 
     subparagraph (C), or
       ``(iii) meets the qualified subsidiary requirements of 
     subparagraph (D).
       ``(B) Ownership and income requirements.--The requirements 
     of this subparagraph are met for an entity if--
       ``(i) at least 50 percent (by vote and value) of the total 
     outstanding shares of stock in such entity are owned directly 
     or indirectly by qualified residents of Taiwan, and
       ``(ii) less than 50 percent of such entity's gross income 
     (and in the case of an entity that is a member of a tested 
     group, less than 50 percent of the tested group's gross 
     income) is paid or accrued, directly or indirectly, in the 
     form of payments that are deductible for purposes of the 
     income taxes imposed by Taiwan, to persons who are not--

       ``(I) qualified residents of Taiwan, or
       ``(II) United States persons who meet such requirements 
     with respect to the United States as determined by the 
     Secretary to be equivalent to the requirements of this 
     subsection (determined without regard to paragraph (1)(B)) 
     with respect to residents of Taiwan.

       ``(C) Publicly traded requirements.--An entity meets the 
     requirements of this subparagraph if--
       ``(i) the principal class of its shares (and any 
     disproportionate class of shares) of such entity are 
     primarily and regularly traded on an established securities 
     market in Taiwan, or
       ``(ii) the primary place of management and control of the 
     entity is in Taiwan and all classes of its outstanding shares 
     described in clause (i) are regularly traded on an 
     established securities market in Taiwan.
       ``(D) Qualified subsidiary requirements.--An entity meets 
     the requirement of this subparagraph if--
       ``(i) at least 50 percent (by vote and value) of the total 
     outstanding shares of the stock of such entity are owned 
     directly or indirectly by 5 or fewer entities--

       ``(I) which meet the requirements of subparagraph (C), or
       ``(II) which are United States persons the principal class 
     of the shares (and any disproportionate class of shares) of 
     which are primarily and regularly traded on an established 
     securities market in the United States, and

       ``(ii) the entity meets the requirements of clause (ii) of 
     subparagraph (B).
       ``(E) Only indirect ownership through qualifying 
     intermediaries counted.--
       ``(i) In general.--Stock in an entity owned by a person 
     indirectly through 1 or more other persons shall not be 
     treated as owned by such person in determining whether the 
     person meets the requirements of subparagraph (B)(i) or 
     (D)(i) unless all such other persons are qualifying 
     intermediate owners.
       ``(ii) Qualifying intermediate owners.--The term 
     `qualifying intermediate owner' means a person that is--

       ``(I) a qualified resident of Taiwan, or
       ``(II) a resident of any other foreign country (other than 
     a foreign country that is a foreign country of concern) that 
     has in effect a comprehensive convention with the United 
     States for the avoidance of double taxation.

       ``(iii) Special rule for qualified subsidiaries.--For 
     purposes of applying subparagraph (D)(i), the term 
     `qualifying intermediate owner' shall include any person who 
     is a United States person who meets such requirements with 
     respect to the United States as determined by the Secretary 
     to be equivalent to the requirements of this subsection 
     (determined without regard to paragraph (1)(B)) with respect 
     to residents of Taiwan.
       ``(F) Certain payments not included.--In determining 
     whether the requirements of subparagraph (B)(ii) or (D)(ii) 
     are met with respect to an entity, the following payments 
     shall not be taken into account:
       ``(i) Arm's-length payments by the entity in the ordinary 
     course of business for services or tangible property.
       ``(ii) In the case of a tested group, intra-group 
     transactions.
       ``(3) Dual residents.--
       ``(A) Rules for determination of status.--
       ``(i) In general.--An individual who is an applicable dual 
     resident and who is described in subparagraph (B), (C), or 
     (D) shall be treated as a qualified resident of Taiwan.
       ``(ii) Applicable dual resident.--For purposes of this 
     paragraph, the term `applicable dual resident' means an 
     individual who--

       ``(I) is not a United States citizen,

[[Page S3611]]

       ``(II) is a resident of the United States (determined 
     without regard to subparagraph (E)), and
       ``(III) would be a qualified resident of Taiwan but for 
     paragraph (1)(B).

       ``(B) Permanent home.--An individual is described in this 
     subparagraph if such individual--
       ``(i) has a permanent home available to such individual in 
     Taiwan, and
       ``(ii) does not have a permanent home available to such 
     individual in the United States.
       ``(C) Center of vital interests.--An individual is 
     described in this subparagraph if--
       ``(i) such individual has a permanent home available to 
     such individual in both Taiwan and the United States, and
       ``(ii) such individual's personal and economic relations 
     (center of vital interests) are closer to Taiwan than to the 
     United States.
       ``(D) Habitual abode.--An individual is described in this 
     subparagraph if--
       ``(i) such individual--

       ``(I) does not have a permanent home available to such 
     individual in either Taiwan or the United States, or
       ``(II) has a permanent home available to such individual in 
     both Taiwan and the United States but such individual's 
     center of vital interests under subparagraph (C)(ii) cannot 
     be determined, and

       ``(ii) such individual has a habitual abode in Taiwan and 
     not the United States.
       ``(E) United states tax treatment of qualified resident of 
     taiwan.--Notwithstanding section 7701, an individual who is 
     treated as a qualified resident of Taiwan by reason of this 
     paragraph for all or any portion of a taxable year shall not 
     be treated as a resident of the United States for purposes of 
     computing such individual's United States income tax 
     liability for such taxable year or portion thereof.
       ``(4) Rules of special application.--
       ``(A) Dividends.--For purposes of applying this section to 
     any dividend, paragraph (2)(D) shall be applied without 
     regard to clause (ii) thereof.
       ``(B) Items of income emanating from an active trade or 
     business in taiwan.--For purposes of this section--
       ``(i) In general.--Notwithstanding the preceding paragraphs 
     of this subsection, if an entity taxed as a corporation in 
     Taiwan is not a qualified resident of Taiwan but meets the 
     requirements of subparagraphs (A) and (B) of paragraph (1), 
     any qualified item of income such entity derived from the 
     United States shall be treated as income of a qualified 
     resident of Taiwan.
       ``(ii) Qualified items of income.--

       ``(I) In general.--The term `qualified item of income' 
     means any item of income which emanates from, or is 
     incidental to, the conduct of an active trade or business in 
     Taiwan (other than operating as a holding company, providing 
     overall supervision or administration of a group of 
     companies, providing group financing, or making or managing 
     investments (unless such making or managing investments is 
     carried on by a bank, insurance company, or registered 
     securities dealer in the ordinary course of its business as 
     such)).
       ``(II) Substantial activity requirement.--An item of income 
     which is derived from a trade or business conducted in the 
     United States or from a connected person shall be a qualified 
     item of income only if the trade or business activity 
     conducted in Taiwan to which the item is related is 
     substantial in relation to the same or a complementary trade 
     or business activity carried on in the United States. For 
     purposes of applying this subclause, activities conducted by 
     persons that are connected to the entity described in clause 
     (i) shall be deemed to be conducted by such entity.

       ``(iii) Exception.--This subparagraph shall not apply to 
     any item of income derived by an entity if at least 50 
     percent (by vote or value) of such entity is owned (directly 
     or indirectly) or controlled by residents of a foreign 
     country of concern.
       ``(d) Other Definitions and Special Rules.--For purposes of 
     this section--
       ``(1) United states permanent establishment.--
       ``(A) In general.--The term `United States permanent 
     establishment' means, with respect to a qualified resident of 
     Taiwan, a permanent establishment of such resident which is 
     within the United States.
       ``(B) Special rule.--The determination of whether there is 
     a permanent establishment of a qualified resident of Taiwan 
     within the United States shall be made without regard to 
     whether an entity which is taxed as a corporation in Taiwan 
     and which is a qualified resident of Taiwan controls or is 
     controlled by--
       ``(i) a domestic corporation, or
       ``(ii) any other person that carries on business in the 
     United States (whether through a permanent establishment or 
     otherwise).
       ``(2) Permanent establishment.--
       ``(A) In general.--The term `permanent establishment' means 
     a fixed place of business through which a trade or business 
     is wholly or partly carried on. Such term shall include--
       ``(i) a place of management,
       ``(ii) a branch,
       ``(iii) an office,
       ``(iv) a factory,
       ``(v) a workshop, and
       ``(vi) a mine, an oil or gas well, a quarry, or any other 
     place of extraction of natural resources.
       ``(B) Special rules for certain temporary projects.--
       ``(i) In general.--A building site or construction or 
     installation project, or an installation or drilling rig or 
     ship used for the exploration or exploitation of the sea bed 
     and its subsoil and their natural resources, constitutes a 
     permanent establishment only if it lasts, or the activities 
     of the rig or ship lasts, for more than 12 months.
       ``(ii) Determination of 12-month period.--For purposes of 
     clause (i), the period over which a building site or 
     construction or installation project of a person lasts shall 
     include any period of more than 30 days during which such 
     person does not carry on activities at such building site or 
     construction or installation project but connected activities 
     are carried on at such building site or construction or 
     installation project by one or more connected persons.
       ``(C) Habitual exercise of contract authority treated as 
     permanent establishment.--Notwithstanding subparagraphs (A) 
     and (B), where a person (other than an agent of an 
     independent status to whom subparagraph (D)(ii) applies) is 
     acting on behalf of a trade or business of a qualified 
     resident of Taiwan and has and habitually exercises an 
     authority to conclude contracts that are binding on the trade 
     or business, that trade or business shall be deemed to have a 
     permanent establishment in the country in which such 
     authority is exercised in respect of any activities that the 
     person undertakes for the trade or business, unless the 
     activities of such person are limited to those described in 
     subparagraph (D)(i) that, if exercised through a fixed place 
     of business, would not make this fixed place of business a 
     permanent establishment under the provisions of that 
     subparagraph.
       ``(D) Exclusions.--
       ``(i) In general.--Notwithstanding subparagraphs (A) and 
     (B), the term `permanent establishment' shall not include--

       ``(I) the use of facilities solely for the purpose of 
     storage, display, or delivery of goods or merchandise 
     belonging to the trade or business,
       ``(II) the maintenance of a stock of goods or merchandise 
     belonging to the trade or business solely for the purpose of 
     storage, display, or delivery,
       ``(III) the maintenance of a stock of goods or merchandise 
     belonging to the trade or business solely for the purpose of 
     processing by another trade or business,
       ``(IV) the maintenance of a fixed place of business solely 
     for the purpose of purchasing goods or merchandise, or of 
     collecting information, for the trade or business,
       ``(V) the maintenance of a fixed place of business solely 
     for the purpose of carrying on, for the trade or business, 
     any other activity of a preparatory or auxiliary character, 
     or
       ``(VI) the maintenance of a fixed place of business solely 
     for any combination of the activities mentioned in subclauses 
     (I) through (V), provided that the overall activity of the 
     fixed place of business resulting from this combination is of 
     a preparatory or auxiliary character.

       ``(ii) Brokers and other independent agents.--A trade or 
     business shall not be considered to have a permanent 
     establishment in a country merely because it carries on 
     business in such country through a broker, general commission 
     agent, or any other agent of an independent status, provided 
     that such persons are acting in the ordinary course of their 
     business as independent agents.
       ``(3) Tested group.--The term `tested group' includes, with 
     respect to any entity taxed as a corporation in Taiwan, such 
     entity and any other entity taxed as a corporation in Taiwan 
     that--
       ``(A) participates as a member with such entity in a tax 
     consolidation, fiscal unity, or similar regime that requires 
     members of the group to share profits or losses, or
       ``(B) shares losses with such entity pursuant to a group 
     relief or other loss sharing regime.
       ``(4) Connected person.--Two persons shall be `connected 
     persons' if one owns, directly or indirectly, at least 50 
     percent of the interests in the other (or, in the case of a 
     corporation, at least 50 percent of the aggregate vote and 
     value of the corporation's shares) or another person owns, 
     directly or indirectly, at least 50 percent of the interests 
     (or, in the case of a corporation, at least 50 percent of the 
     aggregate vote and value of the corporation's shares) in each 
     person. In any case, a person shall be connected to another 
     if, based on all the relevant facts and circumstances, one 
     has control of the other or both are under the control of the 
     same person or persons.
       ``(5) Foreign country of concern.--The term `foreign 
     country of concern' has the meaning given such term under 
     paragraph (7) of section 9901 of the William M. (Mac) 
     Thornberry National Defense Authorization Act for Fiscal Year 
     2021 (15 U.S.C. 4651(7)), as added by section 103(a)(4) of 
     the CHIPS Act of 2022).
       ``(6) Partnerships; beneficiaries of estates and trusts.--
     For purposes of this section--
       ``(A) a qualified resident of Taiwan which is a partner of 
     a partnership which carries on a trade or business within the 
     United States through a United States permanent establishment 
     shall be treated as carrying on such trade or business 
     through such permanent establishment, and

[[Page S3612]]

       ``(B) a qualified resident of Taiwan which is a beneficiary 
     of an estate or trust which carries on a trade or business 
     within the United States through a United States permanent 
     establishment shall be treated as carrying on such trade or 
     business through such permanent establishment.
       ``(7) Denial of benefits for certain payments through 
     hybrid entities.--For purposes of this section, rules similar 
     to the rules of section 894(c) shall apply.
       ``(e) Application.--
       ``(1) In general.--This section shall not apply to any 
     period unless the Secretary has determined that Taiwan has 
     provided benefits to United States persons for such period 
     that are reciprocal to the benefits provided to qualified 
     residents of Taiwan under this section.
       ``(2) Provision of reciprocity.--The President or his 
     designee is authorized to exchange letters, enter into an 
     agreement, or take other necessary and appropriate steps 
     relative to Taiwan for the reciprocal provision of the 
     benefits described in this section.
       ``(f) Regulations or Other Guidance.--
       ``(1) In general.--The Secretary shall issue such 
     regulations or other guidance as may be necessary or 
     appropriate to carry out the provisions of this section, 
     including such regulations or guidance for--
       ``(A) determining--
       ``(i) what constitutes a United States permanent 
     establishment of a qualified resident of Taiwan, and
       ``(ii) income that is effectively connected with such a 
     permanent establishment,
       ``(B) preventing the abuse of the provisions of this 
     section by persons who are not (or who should not be treated 
     as) qualified residents of Taiwan,
       ``(C) requirements for record keeping and reporting,
       ``(D) rules to assist withholding agents or employers in 
     determining whether a foreign person is a qualified resident 
     of Taiwan for purposes of determining whether withholding or 
     reporting is required for a payment (and, if withholding is 
     required, whether it should be applied at a reduced rate),
       ``(E) the application of subsection (a)(1)(D)(i) to stock 
     held by predecessor owners,
       ``(F) determining what amounts are to be treated as 
     qualified wages for purposes of subsection (a)(2),
       ``(G) determining the amounts to which subsection (a)(3) 
     applies,
       ``(H) defining established securities market for purposes 
     of subsection (c),
       ``(I) the application of the rules of subsection (c)(4)(B),
       ``(J) the application of subsection (d)(6) and section 
     1446,
       ``(K) determining ownership interests held by residents of 
     a foreign country of concern, and
       ``(L) determining the starting and ending dates for periods 
     with respect to the application of this section under 
     subsection (e), which may be separate dates for taxes 
     withheld at the source and other taxes.
       ``(2) Regulations to be consistent with model treaty.--Any 
     regulations or other guidance issued under this section 
     shall, to the extent practical, be consistent with the 
     provisions of the United States model income tax convention 
     dated February 7, 2016.''.
       (b) Conforming Amendment to Withholding Tax.--Subchapter A 
     of chapter 3 is amended by adding at the end the following 
     new section:

     ``SEC. 1447. WITHHOLDING FOR QUALIFIED RESIDENTS OF TAIWAN.

       ``For reduced rates of withholding for certain residents of 
     Taiwan, see section 894A.''.
       (c) Clerical Amendments.--
       (1) The table of sections for subpart D of part II of 
     subchapter N of chapter 1 is amended by inserting after the 
     item relating to section 894 the following new item:

``Sec. 894A. Special rules for qualified residents of Taiwan.''.
       (2) The table of sections for subchapter A of chapter 3 is 
     amended by adding at the end the following new item:

``Sec. 1447. Withholding for qualified residents of Taiwan.''.

    Subtitle B--United States-Taiwan Tax Agreement Authorization Act

     SEC. 311. SHORT TITLE.

       This subtitle may be cited as the ``United States-Taiwan 
     Tax Agreement Authorization Act''.

     SEC. 312. DEFINITIONS.

       In this subtitle:
       (1) Agreement.--The term ``Agreement'' means the tax 
     agreement authorized by section 313(a).
       (2) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means--
       (A) the Committee on Foreign Relations and the Committee on 
     Finance of the Senate; and
       (B) the Committee on Ways and Means of the House of 
     Representatives.
       (3) Approval legislation.--The term ``approval 
     legislation'' means legislation that approves the Agreement.
       (4) Implementing legislation.--The term ``implementing 
     legislation'' means legislation that makes any changes to the 
     Internal Revenue Code of 1986 necessary to implement the 
     Agreement.

     SEC. 313. AUTHORIZATION TO NEGOTIATE AND ENTER INTO 
                   AGREEMENT.

       (a) In General.--Subsequent to a determination under 
     section 894A(e)(1) of the Internal Revenue Code of 1986 (as 
     added by the United States-Taiwan Expedited Double-Tax Relief 
     Act), the President is authorized to negotiate and enter into 
     a tax agreement relative to Taiwan.
       (b) Elements of Agreement.--
       (1) Conformity with bilateral income tax conventions.--The 
     President shall ensure that--
       (A) any provisions included in the Agreement conform with 
     provisions customarily contained in United States bilateral 
     income tax conventions, as exemplified by the 2016 United 
     States Model Income Tax Convention; and
       (B) the Agreement does not include elements outside the 
     scope of the 2016 United States Model Income Tax Convention.
       (2) Incorporation of tax agreements and laws.--
     Notwithstanding paragraph (1), the Agreement may incorporate 
     and restate provisions of any agreement, or existing United 
     States law, addressing double taxation for residents of the 
     United States and Taiwan.
       (3) Authority.--The Agreement shall include the following 
     statement: ``The Agreement is entered into pursuant to the 
     United States-Taiwan Tax Agreement Authorization Act.''
       (4) Entry into force.--The Agreement shall include a 
     provision conditioning entry into force upon--
       (A) enactment of approval legislation and implementing 
     legislation pursuant to section 317; and
       (B) confirmation by the Secretary of the Treasury that the 
     relevant authority in Taiwan has approved and taken 
     appropriate steps required to implement the Agreement.

     SEC. 314. CONSULTATIONS WITH CONGRESS.

       (a) Notification Upon Commencement of Negotiations.--The 
     President shall provide written notification to the 
     appropriate congressional committees of the commencement of 
     negotiations between the United States and Taiwan on the 
     Agreement at least 15 calendar days before commencing such 
     negotiations.
       (b) Consultations During Negotiations.--
       (1) Briefings.--Not later than 90 days after commencement 
     of negotiations with respect to the Agreement, and every 180 
     days thereafter until the President enters into the 
     Agreement, the President shall provide a briefing to the 
     appropriate congressional committees on the status of the 
     negotiations, including a description of elements under 
     negotiation.
       (2) Meetings and other consultations.--
       (A) In general.--In the course of negotiations with respect 
     to the Agreement, the Secretary of the Treasury, in 
     coordination with the Secretary of State, shall--
       (i) meet, upon request, with the chairman or ranking member 
     of any of the appropriate congressional committees regarding 
     negotiating objectives and the status of negotiations in 
     progress; and
       (ii) consult closely and on a timely basis with, and keep 
     fully apprised of the negotiations, the appropriate 
     congressional committees.
       (B) Elements of consultations.--The consultations described 
     in subparagraph (A) shall include consultations with respect 
     to--
       (i) the nature of the contemplated Agreement;
       (ii) how and to what extent the contemplated Agreement is 
     consistent with the elements set forth in section 313(b); and
       (iii) the implementation of the contemplated Agreement, 
     including--

       (I) the general effect of the contemplated Agreement on 
     existing laws;
       (II) proposed changes to any existing laws to implement the 
     contemplated Agreement; and
       (III) proposed administrative actions to implement the 
     contemplated Agreement.

     SEC. 315. APPROVAL AND IMPLEMENTATION OF AGREEMENT.

       (a) In General.--The Agreement may not enter into force 
     unless--
       (1) the President, at least 60 days before the day on which 
     the President enters into the Agreement, publishes the text 
     of the contemplated Agreement on a publicly available website 
     of the Department of the Treasury; and
       (2) there is enacted into law, with respect to the 
     Agreement, approval legislation and implementing legislation 
     pursuant to section 317.
       (b) Entry Into Force.--The President may provide for the 
     Agreement to enter into force upon--
       (1) enactment of approval legislation and implementing 
     legislation pursuant to section 317; and
       (2) confirmation by the Secretary of the Treasury that the 
     relevant authority in Taiwan has approved and taken 
     appropriate steps required to implement the Agreement.

     SEC. 316. SUBMISSION TO CONGRESS OF AGREEMENT AND 
                   IMPLEMENTATION POLICY.

       (a) Submission of Agreement.--Not later than 270 days after 
     the President enters into the Agreement, the President or the 
     President's designee shall submit to Congress--
       (1) the final text of the Agreement; and
       (2) a technical explanation of the Agreement.
       (b) Submission of Implementation Policy.--Not later than 
     270 days after the President enters into the Agreement, the 
     Secretary of the Treasury shall submit to Congress--
       (1) a description of those changes to existing laws that 
     the President considers would be required in order to ensure 
     that the United States acts in a manner consistent with the 
     Agreement; and

[[Page S3613]]

       (2) a statement of anticipated administrative action 
     proposed to implement the Agreement.

     SEC. 317. CONSIDERATION OF APPROVAL LEGISLATION AND 
                   IMPLEMENTING LEGISLATION.

       (a) In General.--The approval legislation with respect to 
     the Agreement shall include the following: ``Congress 
     approves the Agreement submitted to Congress pursuant to 
     section 316 of the United States-Taiwan Tax Agreement 
     Authorization Act on ____.'', with the blank space being 
     filled with the appropriate date.
       (b) Approval Legislation Committee Referral.--The approval 
     legislation shall--
       (1) in the Senate, be referred to the Committee on Foreign 
     Relations; and
       (2) in the House of Representatives, be referred to the 
     Committee on Ways and Means.
       (c) Implementing Legislation Committee Referral.--The 
     implementing legislation shall--
       (1) in the Senate, be referred to the Committee on Finance; 
     and
       (2) in the House of Representatives, be referred to the 
     Committee on Ways and Means.

     SEC. 318. RELATIONSHIP OF AGREEMENT TO INTERNAL REVENUE CODE 
                   OF 1986.

       (a) Internal Revenue Code of 1986 to Control.--No provision 
     of the Agreement or approval legislation, nor the application 
     of any such provision to any person or circumstance, which is 
     inconsistent with any provision of the Internal Revenue Code 
     of 1986, shall have effect.
       (b) Construction.--Nothing in this subtitle shall be 
     construed--
       (1) to amend or modify any law of the United States; or
       (2) to limit any authority conferred under any law of the 
     United States,
     unless specifically provided for in this subtitle.

     SEC. 319. AUTHORIZATION OF SUBSEQUENT TAX AGREEMENTS RELATIVE 
                   TO TAIWAN.

       (a) In General.--Subsequent to the enactment of approval 
     legislation and implementing legislation pursuant to section 
     317--
       (1) the term ``tax agreement'' in section 313(a) shall be 
     treated as including any tax agreement relative to Taiwan 
     which supplements or supersedes the Agreement to which such 
     approval legislation and implementing legislation relates, 
     and
       (2) the term ``Agreement'' shall be treated as including 
     such tax agreement.
       (b) Requirements, etc., to Apply Separately.--The 
     provisions of this subtitle (including section 314) shall be 
     applied separately with respect to each tax agreement 
     referred to in subsection (a).

     SEC. 320. UNITED STATES TREATMENT OF DOUBLE TAXATION MATTERS 
                   WITH RESPECT TO TAIWAN.

       (a) Findings.--Congress makes the following findings:
       (1) The United States addresses issues with respect to 
     double taxation with foreign countries by entering into 
     bilateral income tax conventions (known as tax treaties) with 
     such countries, subject to the advice and consent of the 
     Senate to ratification pursuant to article II of the 
     Constitution.
       (2) The United States has entered into more than sixty such 
     tax treaties, which facilitate economic activity, strengthen 
     bilateral cooperation, and benefit United States workers, 
     businesses, and other United States taxpayers.
       (3) Due to Taiwan's unique status, the United States is 
     unable to enter into an article II tax treaty with Taiwan, 
     necessitating an agreement to address issues with respect to 
     double taxation.
       (b) Statement of Policy.--It is the policy of the United 
     States to--
       (1) provide for additional bilateral tax relief with 
     respect to Taiwan, beyond that provided for in section 894A 
     of the Internal Revenue Code of 1986 (as added by the United 
     States-Taiwan Expedited Double-Tax Relief Act), only after 
     entry into force of an Agreement, as provided for in section 
     315, and only in a manner consistent with such Agreement; and
       (2) continue to provide for bilateral tax relief with 
     sovereign states to address double taxation and other related 
     matters through entering into bilateral income tax 
     conventions, subject to the Senate's advice and consent to 
     ratification pursuant to article II of the Constitution.

         TITLE IV--ASSISTANCE FOR DISASTER-IMPACTED COMMUNITIES

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``Federal Disaster Tax 
     Relief Act of 2024''.

     SEC. 402. EXTENSION OF RULES FOR TREATMENT OF CERTAIN 
                   DISASTER-RELATED PERSONAL CASUALTY LOSSES.

       For purposes of applying section 304(b) of the Taxpayer 
     Certainty and Disaster Tax Relief Act of 2020, section 301 of 
     such Act shall be applied by substituting ``the Federal 
     Disaster Tax Relief Act of 2024'' for ``this Act'' each place 
     it appears.

     SEC. 403. EXCLUSION FROM GROSS INCOME FOR COMPENSATION FOR 
                   LOSSES OR DAMAGES RESULTING FROM CERTAIN 
                   WILDFIRES.

       (a) In General.--For purposes of the Internal Revenue Code 
     of 1986, gross income shall not include any amount received 
     by an individual as a qualified wildfire relief payment.
       (b) Qualified Wildfire Relief Payment.--For purposes of 
     this section--
       (1) In general.--The term ``qualified wildfire relief 
     payment'' means any amount received by or on behalf of an 
     individual as compensation for losses, expenses, or damages 
     (including compensation for additional living expenses, lost 
     wages (other than compensation for lost wages paid by the 
     employer which would have otherwise paid such wages), 
     personal injury, death, or emotional distress) incurred as a 
     result of a qualified wildfire disaster, but only to the 
     extent the losses, expenses, or damages compensated by such 
     payment are not compensated for by insurance or otherwise.
       (2) Qualified wildfire disaster.--The term ``qualified 
     wildfire disaster'' means any federally declared disaster (as 
     defined in section 165(i)(5)(A) of the Internal Revenue Code 
     of 1986) declared, after December 31, 2014, as a result of 
     any forest or range fire.
       (c) Denial of Double Benefit.--Notwithstanding any other 
     provision of the Internal Revenue Code of 1986--
       (1) no deduction or credit shall be allowed (to the person 
     for whose benefit a qualified wildfire relief payment is 
     made) for, or by reason of, any expenditure to the extent of 
     the amount excluded under this section with respect to such 
     expenditure, and
       (2) no increase in the basis or adjusted basis of any 
     property shall result from any amount excluded under this 
     subsection with respect to such property.
       (d) Limitation on Application.--This section shall only 
     apply to qualified wildfire relief payments received by the 
     individual during taxable years beginning after December 31, 
     2019, and before January 1, 2026.

     SEC. 404. EAST PALESTINE DISASTER RELIEF PAYMENTS.

       (a) Disaster Relief Payments to Victims of East Palestine 
     Train Derailment.--East Palestine train derailment payments 
     shall be treated as qualified disaster relief payments for 
     purposes of section 139(b) of the Internal Revenue Code of 
     1986.
       (b) East Palestine Train Derailment Payments.--For purposes 
     of this section, the term ``East Palestine train derailment 
     payment'' means any amount received by or on behalf of an 
     individual as compensation for loss, damages, expenses, loss 
     in real property value, closing costs with respect to real 
     property (including realtor commissions), or inconvenience 
     (including access to real property) resulting from the East 
     Palestine train derailment if such amount was provided by--
       (1) a Federal, State, or local government agency,
       (2) Norfolk Southern Railway, or
       (3) any subsidiary, insurer, or agent of Norfolk Southern 
     Railway or any related person.
       (c) Train Derailment.--For purposes of this section, the 
     term ``East Palestine train derailment'' means the derailment 
     of a train in East Palestine, Ohio, on February 3, 2023.
       (d) Effective Date.--This section shall apply to amounts 
     received on or after February 3, 2023.

                    TITLE V--MORE AFFORDABLE HOUSING

     SEC. 501. STATE HOUSING CREDIT CEILING INCREASE FOR LOW-
                   INCOME HOUSING CREDIT.

       (a) In General.--Section 42(h)(3)(I) is amended--
       (1) by striking ``and 2021,'' and inserting ``2021, 2023, 
     2024, and 2025,'', and
       (2) by striking ``2018, 2019, 2020, and 2021'' in the 
     heading and inserting ``certain calendar years''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to calendar years after 2022.

     SEC. 502. TAX-EXEMPT BOND FINANCING REQUIREMENT.

       (a) In General.--Section 42(h)(4) is amended by striking 
     subparagraph (B) and inserting the following:
       ``(B) Special rule where minimum percent of buildings is 
     financed with tax-exempt bonds subject to volume cap.--For 
     purposes of subparagraph (A), paragraph (1) shall not apply 
     to any portion of the credit allowable under subsection (a) 
     with respect to a building if--
       ``(i) 50 percent or more of the aggregate basis of such 
     building and the land on which the building is located is 
     financed by 1 or more obligations described in subparagraph 
     (A), or
       ``(ii)(I) 30 percent or more of the aggregate basis of such 
     building and the land on which the building is located is 
     financed by 1 or more qualified obligations, and
       ``(II) 1 or more of such qualified obligations--

       ``(aa) are part of an issue the issue date of which is 
     after December 31, 2023, and
       ``(bb) provide the financing for not less than 5 percent of 
     the aggregate basis of such building and the land on which 
     the building is located.

       ``(C) Qualified obligation.--For purposes of subparagraph 
     (B)(ii), the term `qualified obligation' means an obligation 
     which is described in subparagraph (A) and which is part of 
     an issue the issue date of which is before January 1, 
     2026.''.
       (b) Effective Date.--
       (1) In general.--The amendment made by this section shall 
     apply to buildings placed in service in taxable years 
     beginning after December 31, 2023.
       (2) Rehabilitation expenditures treated as separate new 
     building.--In the case of any building with respect to which 
     any expenditures are treated as a separate new building under 
     section 42(e) of the Internal Revenue Code of 1986, for 
     purposes of paragraph (1), both the existing building and the 
     separate new building shall be treated as having been placed 
     in service on the date such expenditures are treated as 
     placed in service under section 42(e)(4) of such Code.

[[Page S3614]]

  


           TITLE VI--TAX ADMINISTRATION AND ELIMINATING FRAUD

     SEC. 601. INCREASE IN THRESHOLD FOR REQUIRING INFORMATION 
                   REPORTING WITH RESPECT TO CERTAIN PAYEES.

       (a) In General.--Sections 6041(a) is amended by striking 
     ``$600'' and inserting ``$1,000''.
       (b) Inflation Adjustment.--Section 6041 is amended by 
     adding at the end the following new subsection:
       ``(h) Inflation Adjustment.--In the case of any calendar 
     year after 2024, the dollar amount in subsection (a) shall be 
     increased by an amount equal to--
       ``(1) such dollar amount, multiplied by
       ``(2) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year, determined by 
     substituting `calendar year 2023' for `calendar year 2016' in 
     subparagraph (A)(ii) thereof.
     If any increase under the preceding sentence is not a 
     multiple of $100, such increase shall be rounded to the 
     nearest multiple of $100.''.
       (c) Application to Reporting on Remuneration for Services 
     and Direct Sales.--Section 6041A is amended--
       (1) in subsection (a)(2), by striking ``is $600 or more'' 
     and inserting ``equals or exceeds the dollar amount in effect 
     for such calendar year under section 6041(a)'', and
       (2) in subsection (b)(1)(B), by striking ``is $5,000 or 
     more'' and inserting ``equals or exceeds the dollar amount in 
     effect for such calendar year under section 6041(a)''.
       (d) Application to Backup Withholding.--Section 3406(b)(6) 
     is amended--
       (1) by striking ``$600'' in subparagraph (A) and inserting 
     ``the dollar amount in effect for such calendar year under 
     section 6041(a)'', and
       (2) by striking ``only where aggregate for calendar year is 
     $600 or more'' in the heading and inserting ``only if in 
     excess of threshold''.
       (e) Conforming Amendments.--
       (1) The heading of section 6041(a) is amended by striking 
     ``of $600 or More'' and inserting ``Exceeding Threshold''.
       (2) Section 6041(a) is amended by striking ``taxable year'' 
     and inserting ``calendar year''.
       (f) Effective Date.--The amendments made by this section 
     shall apply with respect to payments made after December 31, 
     2023.

     SEC. 602. ENFORCEMENT PROVISIONS WITH RESPECT TO COVID-
                   RELATED EMPLOYEE RETENTION CREDITS.

       (a) Increase in Assessable Penalty on COVID-ERTC Promoters 
     for Aiding and Abetting Understatements of Tax Liability.--
       (1) In general.--If any COVID-ERTC promoter is subject to 
     penalty under section 6701(a) of the Internal Revenue Code of 
     1986 with respect to any COVID-ERTC document, notwithstanding 
     paragraphs (1) and (2) of section 6701(b) of such Code, the 
     amount of the penalty imposed under such section 6701(a) 
     shall be the greater of--
       (A) $200,000 ($10,000, in the case of a natural person), or
       (B) 75 percent of the gross income derived (or to be 
     derived) by such promoter with respect to the aid, 
     assistance, or advice referred to in section 6701(a)(1) of 
     such Code with respect to such document.
       (2) No inference.--Paragraph (1) shall not be construed to 
     create any inference with respect to the proper application 
     of the knowledge requirement of section 6701(a)(3) of the 
     Internal Revenue Code of 1986.
       (b) Failure to Comply With Due Diligence Requirements 
     Treated as Knowledge for Purposes of Assessable Penalty for 
     Aiding and Abetting Understatement of Tax Liability.--In the 
     case of any COVID-ERTC promoter, the knowledge requirement of 
     section 6701(a)(3) of the Internal Revenue Code of 1986 shall 
     be treated as satisfied with respect to any COVID-ERTC 
     document with respect to which such promoter provided aid, 
     assistance, or advice, if such promoter fails to comply with 
     the due diligence requirements referred to in subsection 
     (c)(1).
       (c) Assessable Penalty for Failure to Comply With Due 
     Diligence Requirements.--
       (1) In general.--Any COVID-ERTC promoter which provides 
     aid, assistance, or advice with respect to any COVID-ERTC 
     document and which fails to comply with due diligence 
     requirements imposed by the Secretary with respect to 
     determining eligibility for, or the amount of, any COVID-
     related employee retention tax credit, shall pay a penalty of 
     $1,000 for each such failure.
       (2) Due diligence requirements.--Except as otherwise 
     provided by the Secretary, the due diligence requirements 
     referred to in paragraph (1) shall be similar to the due 
     diligence requirements imposed under section 6695(g).
       (3) Restriction to documents used in connection with 
     returns or claims for refund.--Paragraph (1) shall not apply 
     with respect to any COVID-ERTC document unless such document 
     constitutes, or relates to, a return or claim for refund.
       (4) Treatment as assessable penalty, etc.--For purposes of 
     the Internal Revenue Code of 1986, the penalty imposed under 
     paragraph (1) shall be treated in the same manner as a 
     penalty imposed under section 6695(g).
       (5) Secretary.--For purposes of this subsection, the term 
     ``Secretary'' means the Secretary of the Treasury or the 
     Secretary's delegate.
       (d) Assessable Penalties for Failure to Disclose 
     Information, Maintain Client Lists, etc.--For purposes of 
     sections 6111, 6112, 6707 and 6708 of the Internal Revenue 
     Code of 1986--
       (1) any COVID-related employee retention tax credit 
     (whether or not the taxpayer claims such COVID-related 
     employee retention tax credit) shall be treated as a listed 
     transaction (and as a reportable transaction) with respect to 
     any COVID-ERTC promoter if such promoter provides any aid, 
     assistance, or advice with respect to any COVID-ERTC document 
     relating to such COVID-related employee retention tax credit, 
     and
       (2) such COVID-ERTC promoter shall be treated as a material 
     advisor with respect to such transaction.
       (e) COVID-ERTC Promoter.--For purposes of this section--
       (1) In general.--The term ``COVID-ERTC promoter'' means, 
     with respect to any COVID-ERTC document, any person which 
     provides aid, assistance, or advice with respect to such 
     document if--
       (A) such person charges or receives a fee for such aid, 
     assistance, or advice which is based on the amount of the 
     refund or credit with respect to such document and, with 
     respect to such person's taxable year in which such person 
     provided such assistance or the preceding taxable year, the 
     aggregate gross receipts of such person for aid, assistance, 
     and advice with respect to all COVID-ERTC documents exceeds 
     20 percent of the gross receipts of such person for such 
     taxable year, or
       (B) with respect to such person's taxable year in which 
     such person provided such assistance or the preceding taxable 
     year--
       (i) the aggregate gross receipts of such person for aid, 
     assistance, and advice with respect to all COVID-ERTC 
     documents exceeds 50 percent of the gross receipts of such 
     person for such taxable year, or
       (ii) both--

       (I) such aggregate gross receipts exceeds 20 percent of the 
     gross receipts of such person for such taxable year, and
       (II) the aggregate gross receipts of such person for aid, 
     assistance, and advice with respect to all COVID-ERTC 
     documents (determined after application of paragraph (3)) 
     exceeds $500,000.

       (2) Exception for certified professional employer 
     organizations.--The term ``COVID-ERTC promoter'' shall not 
     include a certified professional employer organization (as 
     defined in section 7705).
       (3) Aggregation rule.--For purposes of paragraph 
     (1)(B)(ii)(II), all persons treated as a single employer 
     under subsection (a) or (b) of section 52 of the Internal 
     Revenue Code of 1986, or subsection (m) or (o) of section 414 
     of such Code, shall be treated as 1 person.
       (4) Short taxable years.--In the case of any taxable year 
     of less than 12 months, paragraph (1) shall be applied with 
     respect to the calendar year in which such taxable year 
     begins (in addition to applying to such taxable year).
       (f) COVID-ERTC Document.--For purposes of this section, the 
     term ``COVID-ERTC document'' means any return, affidavit, 
     claim, or other document related to any COVID-related 
     employee retention tax credit, including any document related 
     to eligibility for, or the calculation or determination of 
     any amount directly related to any COVID-related employee 
     retention tax credit.
       (g) COVID-related Employee Retention Tax Credit.--For 
     purposes of this section, the term ``COVID-related employee 
     retention tax credit'' means--
       (1) any credit, or advance payment, under section 3134 of 
     the Internal Revenue Code of 1986, and
       (2) any credit, or advance payment, under section 2301 of 
     the CARES Act.
       (h) Limitation on Credit and Refund of COVID-related 
     Employee Retention Tax Credits.--Notwithstanding section 6511 
     of the Internal Revenue Code of 1986 or any other provision 
     of law, no credit or refund of any COVID-related employee 
     retention tax credit shall be allowed or made after January 
     31, 2024, unless a claim for such credit or refund is filed 
     by the taxpayer on or before such date.
       (i) Amendments to Extend Limitation on Assessment.--
       (1) In general.--Section 3134(l) of the Internal Revenue 
     Code of 1986 is amended to read as follows:
       ``(l) Extension of Limitation on Assessment.--
       ``(1) In general.--Notwithstanding section 6501, the 
     limitation on the time period for the assessment of any 
     amount attributable to a credit claimed under this section 
     shall not expire before the date that is 6 years after the 
     latest of--
       ``(A) the date on which the original return which includes 
     the calendar quarter with respect to which such credit is 
     determined is filed,
       ``(B) the date on which such return is treated as filed 
     under section 6501(b)(2), or
       ``(C) the date on which the claim for credit or refund with 
     respect to such credit is made.
       ``(2) Deduction for wages taken into account in determining 
     improperly claimed credit.--
       ``(A) In general.--Notwithstanding section 6511, in the 
     case of an assessment attributable to a credit claimed under 
     this section, the limitation on the time period for credit or 
     refund of any amount attributable to a deduction for 
     improperly claimed ERTC wages shall not expire before the 
     time period for such assessment expires under paragraph (1).
       ``(B) Improperly claimed ertc wages.--For purposes of this 
     paragraph, the term `improperly claimed ERTC wages' means, 
     with

[[Page S3615]]

     respect to an assessment attributable to a credit claimed 
     under this section, the wages with respect to which a 
     deduction would not have been allowed if the portion of the 
     credit to which such assessment relates had been properly 
     claimed.''.
       (2) Application to cares act credit.--Section 2301 of the 
     CARES Act is amended by adding at the end the following new 
     subsection:
       ``(o) Extension of Limitation on Assessment.--
       ``(1) In general.--Notwithstanding section 6501 of the 
     Internal Revenue Code of 1986, the limitation on the time 
     period for the assessment of any amount attributable to a 
     credit claimed under this section shall not expire before the 
     date that is 6 years after the latest of--
       ``(A) the date on which the original return which includes 
     the calendar quarter with respect to which such credit is 
     determined is filed,
       ``(B) the date on which such return is treated as filed 
     under section 6501(b)(2) of such Code, or
       ``(C) the date on which the claim for credit or refund with 
     respect to such credit is made.
       ``(2) Deduction for wages taken into account in determining 
     improperly claimed credit.--
       ``(A) In general.--Notwithstanding section 6511 of such 
     Code, in the case of an assessment attributable to a credit 
     claimed under this section, the limitation on the time period 
     for credit or refund of any amount attributable to a 
     deduction for improperly claimed ERTC wages shall not expire 
     before the time period for such assessment expires under 
     paragraph (1).
       ``(B) Improperly claimed ertc wages.--For purposes of this 
     paragraph, the term `improperly claimed ERTC wages' means, 
     with respect to an assessment attributable to a credit 
     claimed under this section, the wages with respect to which a 
     deduction would not have been allowed if the portion of the 
     credit to which such assessment relates had been properly 
     claimed.''.
       (j) Effective Dates.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the provisions of this section shall apply to 
     aid, assistance, and advice provided after March 12, 2020.
       (2) Due diligence requirements.--Subsections (b) and (c) 
     shall apply to aid, assistance, and advice provided after the 
     date of the enactment of this Act.
       (3) Limitation on credit and refund of covid-related 
     employee retention tax credits.--Subsection (h) shall apply 
     to credits and refunds allowed or made after January 31, 
     2024.
       (4) Amendments to extend limitation on assessment.--The 
     amendments made by subsection (i) shall apply to assessments 
     made after the date of the enactment of this Act.
       (k) Transition Rule With Respect to Requirements to 
     Disclose Information, Maintain Client Lists, etc.--Any return 
     under section 6111 of the Internal Revenue Code of 1986, or 
     list under section 6112 of such Code, required by reason of 
     subsection (d) of this section to be filed or maintained, 
     respectively, with respect to any aid, assistance, or advice 
     provided by a COVID-ERTC promoter with respect to a COVID-
     ERTC document before the date of the enactment of this Act, 
     shall not be required to be so filed or maintained (with 
     respect to such aid, assistance or advice) before the date 
     which is 90 days after such date.
       (l) Provisions Not to Be Construed to Create Negative 
     Inferences.--
       (1) No inference with respect to application of knowledge 
     requirement to pre-enactment conduct of covid-ertc promoters, 
     etc.--Subsection (b) shall not be construed to create any 
     inference with respect to the proper application of section 
     6701(a)(3) of the Internal Revenue Code of 1986 with respect 
     to any aid, assistance, or advice provided by any COVID-ERTC 
     promoter on or before the date of the enactment of this Act 
     (or with respect to any other aid, assistance, or advice to 
     which such subsection does not apply).
       (2) Requirements to disclose information, maintain client 
     lists, etc.--Subsections (d) and (k) shall not be construed 
     to create any inference with respect to whether any COVID-
     related employee retention tax credit is (without regard to 
     subsection (d)) a listed transaction (or reportable 
     transaction) with respect to any COVID-ERTC promoter; and, 
     for purposes of subsection (j), a return or list shall not be 
     treated as required (with respect to such aid, assistance, or 
     advice) by reason of subsection (d) if such return or list 
     would be so required without regard to subsection (d).
       (m) Regulations.--The Secretary (as defined in subsection 
     (c)(5)) shall issue such regulations or other guidance as may 
     be necessary or appropriate to carry out the purposes of this 
     section (and the amendments made by this section).
                                 ______