[Congressional Record (Bound Edition), Volume 158 (2012), Part 13]
[House]
[Pages 18581-18611]
[From the U.S. Government Publishing Office, www.gpo.gov]




                  AMERICAN TAXPAYER RELIEF ACT OF 2012

  Mr. DREIER, from the Committee on Rules, submitted a privileged 
report

[[Page 18582]]

(Rept. No. 112-741) on the resolution (H. Res. 844) providing for 
consideration of the bill (H.R. 8) to extend certain tax relief 
provisions enacted in 2001 and 2003, and to provide for expedited 
consideration of a bill providing for comprehensive tax reform, and for 
other purposes, which was referred to the House Calendar and ordered to 
be printed.
  Mr. DREIER. Mr. Speaker, by direction of the Committee on Rules, I 
call up House Resolution 844 and ask for its immediate consideration.
  The Clerk read the resolution, as follows:

                              H. Res. 844

       Resolved, That upon the adoption of this resolution it 
     shall be in order to take from the Speaker's table the bill 
     (H.R. 8) to extend certain tax relief provisions enacted in 
     2001 and 2003, and to provide for expedited consideration of 
     a bill providing for comprehensive tax reform, and for other 
     puropses, with the Senate amendments thereto, and to consider 
     in the House, without intervention of any point of order, a 
     single motion offered by the chair of the Committee on Ways 
     and Means or his designee that the House concur in the Senate 
     amendments. The Senate amendments and the motion shall be 
     considered as read. The motion shall be debatable for one 
     hour equally divided and controlled by the chair and ranking 
     minority member of the Committee on Ways and Means. The 
     previous question shall be considered as ordered on the 
     motion to its adoption without intervening motion or demand 
     for division of the question.

  The SPEAKER pro tempore. The gentleman from California is recognized 
for 1 hour.
  Mr. DREIER. Mr. Speaker, I am happy to yield the customary 30 minutes 
to my very good friend from Rochester, New York, the distinguished 
ranking member of the Committee on Rules, Ms. Slaughter, pending which 
I yield myself such time as I may consume. All time that I will be 
yielding will be for debate purposes only.
  Mr. Speaker, the measure before us and the process that brought us 
here has been the source of a great deal of understandable 
consternation. Virtually no one believes that what we have before us 
tonight is a long-term solution to this problem, and most have bemoaned 
the fact that we have stretched the far reaches of our deadline to 
actually get here.
  Now, I'm privileged to be in my fourth decade as a Member of this 
body. And it's true, I don't believe that in those decades I've ever 
actually spent New Year's Eve and/or New Year's Day in this building, 
but working up to a deadline is hardly unprecedented in this 
institution.
  As we all know, H.R. 8, we are concurring in the Senate amendment 
with this rule, but H.R. 8 passed last August 1, went over to the other 
body, and it passed by a ratio of 256-171 last August 1. And it went 
over there and we've been waiting, so it's now come back to us. It is 
before us, and I will say that we are addressing this right up to the 
deadline.
  But I can remember, as I know colleagues of mine on both sides of the 
aisle can recall, there have been many deadlines that have approached, 
and it's a fact of life when you have deadlines.
  I can recall very well, in school I had a great international 
relations professor in college, and at the beginning of the class he 
would give us these geographic spots around the world. Back then, we 
didn't have Google and we had to spend time finding these very, very 
obscure spots. And almost every time, when did we do it? Just as we 
were approaching that deadline. And Professor Rood understood that 
extraordinarily well, and he laughed as we were struggling at the end 
to do that.
  Similarly, this notion of approaching a deadline and trying to deal 
with an issue is something that happens in this institution, and this 
is another example where that's the case.
  The issues that we are attempting to address tonight with this vote 
are as important as they are challenging. The range of ideas that have 
been proposed as solutions are as disparate as they are numerous. This 
body, like our Nation, has been deeply divided over how to proceed.
  Under these circumstances, an agreement has been extraordinarily 
elusive. We all know that. The bill before us is not the grand bargain 
that I, and I think most of my colleagues, had hoped that we would have 
been able to achieve. But what we're doing this evening, Mr. Speaker, 
is a very essential bridge to what I hope will be a comprehensive, 
long-term solution.
  Mr. Speaker, it will bring us back from the edge of the fiscal cliff. 
And I know, just hours ago, at midnight, we did, technically, go over 
that bridge, but we are working hard to pull ourselves back from that 
cliff. We went over the cliff and we're pulling ourselves back, and we 
are ensuring that taxes are not increased on 99 percent of our fellow 
Americans.
  I know that I'm not alone when I say that I had high hopes for a 
package of sweeping tax reform, and something that I think has to be 
acknowledged, and I'm very saddened that it's not included in here, but 
entitlement reform. We all know, and you know very well, Mr. Speaker, 
that entitlement reform is the only way that we are going to 
successfully get our arms around this massive 16--now I guess it's 
$16.25 trillion national debt that is there. As Willie Sutton said, he 
robbed banks because that's where the money is. We know that 
entitlement reform is going to be essential if we are going to be able 
to get our fiscal house in order, and I'm saddened that this is not 
part of it.
  We have repeatedly passed out of the House of Representatives 
meaningful, meaningful reform in a number of these areas. It's truly 
unfortunate that our friends in the other body have not engaged, thus 
far, in these efforts. But, Mr. Speaker, the legislation that is before 
us, which again, as we all know, passed at 2 o'clock this morning, 
earlier today in the Senate, will avert the economic crisis and set the 
stage for the very hard work that must be done in the coming weeks.
  Now, Mr. Speaker Pro Tem, you and I won't be here for that work to 
take place, but I know that you share my view that our colleagues have 
a unique opportunity, as the 113th Congress begins its work at noon on 
Thursday, to take on this challenge. And I'm one who actually believes 
that we have a unique opportunity because of the fact that there is 
divided government, because we have a President of one party who 
regularly talks about the need for this kind of reform--and I 
congratulate him for that--and we have a House of Representatives, the 
people's House, the body that, under article I, section 7 of the U.S. 
Constitution, has the responsibility of dealing with tax issues, that 
this body is of the other party, our party, Mr. Speaker.
  In light of that, I think that, since there is a consensus on the 
need to tackle these issues, it can be done in a bipartisan way. I hope 
very much that that will happen.
  The way for us to take that first step is, of course, to pass this 
rule with what I am confident will be bipartisan support. And I 
appreciate the very kind words of the distinguished ranking member, my 
friend from Rochester, Ms. Slaughter, upstairs in supporting this 
effort that we have. And then at the end of the day, once we go into 
the debate on concurring in the Senate amendment, which is what this 
rule will call for us to do, that we'll again have strong bipartisan 
support for that measure.
  With that, Mr. Speaker, at this juncture, I reserve the balance of my 
time.
  Ms. SLAUGHTER. Mr. Speaker, I certainly thank my colleague for 
yielding me the customary 30 minutes and yield myself such time as I 
may consume.
  Mr. Speaker, I want to begin by saying to my colleague, Mr. Dreier, 
we've served together here for many years on the Rules Committee. I 
think that his knowledge of both the Rules Committee and its functions 
and the rules of the House are unsurpassed, and I think he will be very 
greatly missed.

                              {time}  2050

  I want to wish him the very best in his new endeavors in the rest of 
his life. Nothing but happiness and joy. And thank you. I feel I've 
learned a great deal from you, David. Thank you for that.
  Mr. Speaker, the legislation before me, as my colleague said, is no 
great

[[Page 18583]]

victory. It's only a partial answer to a much larger problem, and it 
sets our Nation up for another fiscal showdown in mere months. As we 
vote, let every Member of this Chamber reflect on the dysfunctional 
legislative process and the irresponsible leadership that brought us 
here today, and the need for the majority to come back to the 
bargaining table in good faith as our work continues. And I share Mr. 
Dreier's hope that from now on we will put this all behind us and that 
this next term will be a bipartisan term.
  Let history show that the fiscal cliff and the dire economic 
consequences that would come with it were the deliberate creation of 
this House. Because of hyperpartisan actions taken by the majority, the 
body has pushed our Nation closer to a self-created economic recession 
and the greatest displacement of workers that the Nation has known 
since 1929.
  The idea behind the fiscal cliff was that the potential for a self-
inflicted wound would force Congress to address the growing deficit and 
debt. Yet from the beginning, the plan was flawed. Over the last 10 
years, our deficit has ballooned because of the cost of two wars and 
massive unpaid-for tax cuts. Yet discussion over the cost of war--
conflicts that have cost the lives of thousands of Americans and 
forever changed the face of American families--has been almost 
nonexistent. At the same time, the majority's desire to protect tax 
cuts for millionaires and billionaires quickly hardened into 
intransigence and has led us to where we are today. Just a week ago 
today, it looked as though Congress was close to a solution, until the 
House majority walked away.
  Instead of seizing an historic opportunity for compromise, the 
majority introduced a so-called ``Plan B,'' which quickly morphed into 
Plan C before being scrapped altogether and leaving us with almost no 
time to avert the fiscal cliff. By making tax cuts for millionaires and 
billionaires their biggest priority, the majority not only endangered 
our economy but they led the House through a legislative process that 
violated any sense of regular order and transparency. Indeed, as my 
colleagues and I sat in the Rules Committee last week, the legislation 
we were considering was changing by the minute, leaving us to guess at 
what would actually be included in any bill that required our vote.
  Sadly, such dysfunctional governing comes as little surprise. For the 
past 2 years, the majority has led with a toxic combination of 
extremism and hyperpartisanship that has resulted in the 112th Congress 
being the least productive in history. During the summer of 2011, the 
majority threw our Nation into crisis when they took our economy 
hostage and threatened to default on our Nation's debt. This dangerous 
and irresponsible approach rattled investors around the world and led 
to the first-ever downgrade of our Nation's credit. In addition, over 
the last 2 years, the majority has voted more than 33 times to repeal 
the historic Affordable Care Act, despite knowing full well that the 
repeal votes would never be signed into law because the Senate would 
not do that bill. In so doing, they took up valuable time from other 
legislative priorities. And CBS News reports that these votes 
consistently trying to repeal health care, Mr. Speaker, cost the 
American taxpayer almost $50 million.
  For over a year and a half, this type of irresponsible and 
unproductive governing failed to provide any solutions to the American 
people. And coming out of the November elections, our mandate was 
clear. The American people demanded an end to the political theater and 
the dangerous legislative games. They demanded that we finally get to 
work and solve the looming fiscal cliff in a balanced, responsible, and 
bipartisan way.
  In the middle of last July, all of the ranking committee members in 
the House of Representatives sent a letter to the Speaker asking that 
we begin in July to find a solution to the fiscal cliff and 
sequestration. We called for a bipartisan approach and something we 
could get finished before the August recess so that we could spare the 
American people and most other people in the world and financial 
markets the worry that we have put them through. We got our answer 
tonight.
  So, unfortunately, today, what we are doing here does not give the 
American people a solution worthy of their full approval--and I'm sure 
we don't have it. The legislation before us fails to seriously address 
the deficit and debt, protects too many wealthy Americans, and sets the 
Nation up for another round of high-stakes negotiations. However, what 
we do have before us is a product that can avert the worst of the 
fiscal cliff and begin the process of balancing the budget and 
returning fairness, we hope, to the Tax Code.
  Under today's legislation, millions of Americans will be spared from 
a tax increase, and valuable tax extensions for middle-class families 
and students will remain in place. In addition, today's legislation 
extends unemployment insurance for millions of Americans struggling to 
find work.
  In closing, this legislation is far from perfect, and the process 
that has led us here is an utter disgrace. Yet in this time of crisis 
we must act first and foremost to try to protect the American economy. 
And today's legislation will do that. In the coming weeks, we must 
continue the hard work of creating a fair Tax Code and ensuring we 
reduce our deficit in a balanced, responsible, and bipartisan way. And 
as we do, I urge my fellow Members to avoid brinksmanship and partisan 
games and to come to the table in good faith on behalf of all the 
people who sent us here and put their faith in us.
  I reserve the balance of my time.
  Mr. DREIER. I yield myself such time as I may consume to first 
express my appreciation to my friend from Rochester for her very 
generous and kind remarks and to, secondly, say that I would like to 
associate myself not necessarily with those kind remarks but I would 
like to associate myself with some of what she said. I, obviously, 
can't associate myself with all of those remarks, as you know, Mr. 
Speaker. But I will say that as we look at our quest for a bipartisan 
solution for this problem, I think that we have, with the action that 
we're about to take here, taken a very important first step.
  I'm reminded of the fact that the author of the U.S. Constitution, 
James Madison, famously described the process of lawmaking as an ugly, 
messy, difficult process. That's by design, Mr. Speaker. And it's by 
design because if we look back at our Framers, they were fleeing the 
tyranny of King George. Why? Because that maniac was making unilateral 
decisions that played a role in ruining the lives of his fellow 
countrymen. So the Framers came forward and, in structuring our 
government with the three branches, they wanted to ensure that no 
individual got too much power. And when it comes to lawmaking, putting 
into place this great compromise, the Connecticut Compromise, it 
established a bicameral legislative structure.
  And so I was talking one time, Mr. Speaker, with the first woman--now 
there are two--but the first woman to serve as a president of any of 
the 54 countries on the continent of Africa. She gave a brilliant 
speech for a joint session of Congress. She's the President of Liberia, 
Ellen Johnson Sirleaf. And I was talking to her about the legislative 
process. I was sitting in Monrovia, Liberia, and I said to her, James 
Madison, by design, said that this is to be an ugly, messy, difficult 
process. And I'll never forget, Mr. Speaker, how President Ellen 
Johnson Sirleaf looked to me and said, David, you've forgotten one 
thing. Yes, it is an ugly, messy, difficult process. But you have to 
add the fact that it works.
  And as difficult as it has been to get to this point, we need to 
realize that it's an ugly, messy, difficult process. While this is a 
very small step, it's a first step in our quest for tax reform and 
entitlement reform which will get us back on a path towards economic 
growth and the kind of prosperity that we want and that the American 
people deserve. And it will create a greater degree of certainty. We 
all know that uncertainty is the enemy of prosperity. So making 
permanent these tax cuts for 99 percent of the American people is

[[Page 18584]]

a very important step in our quest to ensure that there is that degree 
of certainty.

                              {time}  2100

  So, Mr. Speaker, I will say again that I do associate myself with 
some of the things that my friend from Rochester said, and I do, again, 
appreciate her very kind remarks.
  With that, I reserve the balance of my time.
  Ms. SLAUGHTER. Mr. Speaker, I am pleased to yield 2 minutes to the 
gentleman from Colorado (Mr. Polis), a member of the Committee on 
Rules.
  Mr. POLIS. I want to again begin by acknowledging the long service of 
our chair in the House. This could very well be the last time we have 
the opportunity to debate here on the House floor, and I certainly wish 
him well.
  I also want to express my gratitude to the great patriotism of my 
colleagues, both Democratic and Republican, and particularly those in 
their lame-duck period who have chosen to stay around and work right up 
to the final hour of their contract with the American people--in many 
cases without an office, in many cases without a home. We see them 
roaming the halls here of the Capitol. I personally, regardless of how 
they come down on this particular issue, applaud their patriotism in 
fulfilling the will of their voters for the 112th Congress.
  What we have before us, and I think Members on both sides agree, 
certainly has some good aspects and some aspects that need to be 
approved. The question is on what side is there more weight. I think 
it's important to talk about what this bill does and what it doesn't 
do.
  First, briefly, what it doesn't do. My own Senator from Colorado, 
Michael Bennet, was one of the small group of Senators who voted 
against this because he, like myself, is an advocate of a comprehensive 
budget solution: restoring fiscal integrity to our country along the 
parameters of what the supercommittee attempted but failed to 
accomplish, along the parameters of what the Bowles-Simpson Commission, 
the Gang of Eight have attempted to accomplish, which we know could 
only be accomplished in a bipartisan manner but is so important to the 
future of our country to balance the budget and restore the fiscal 
integrity.
  This bill is not that bill. However, what this bill does is it 
ensures that the American people will not have the largest tax increase 
in the history of our country tomorrow: $2,000 a year out of the pocket 
of families making $80,000 a year; almost $4,000 a year out of the 
pocket of families making $150,000 a year.
  What does that mean to families? It might be the money that helps 
them stay above water on their mortgage. It might be the money that 
allows their child to attend college.
  Beyond the ramifications at the family level, there's the aggregate 
effect across our economy. When families don't have that money, they're 
not able to spend that money to buy products, buy products that need to 
be produced, have jobs in America and create jobs.
  I think we need to make sure that we don't raise taxes on the 
American people. The best way to do that is by supporting this bill. 
Anybody opposing this bill is supporting the largest tax increase in 
the history of the country.
  I call upon my colleagues, Democratic and Republican, to remove this 
tax burden from the middle class and ensure that taxes don't go up 
tomorrow. I encourage my colleagues to support the rule and the bill.
  Mr. DREIER. Mr. Speaker, I'd inquire of my friend how many speakers 
she has remaining on her side.
  Ms. SLAUGHTER. I believe I have three, Mr. Speaker.
  Mr. DREIER. Three speakers. Well, I anxiously look forward to their 
remarks.
  With that, I reserve the balance of my time.
  Ms. SLAUGHTER. I am pleased to yield 1 minute to the gentlewoman from 
Texas (Ms. Jackson Lee).
  Ms. JACKSON LEE of Texas. I'll add my appreciation to the service of 
Mr. Dreier as well.
  And ask the question: Why are we here? I know why I'm here--to 
protect working Americans, the vulnerable and middle class. The reason 
why we're in this position is because at the end of the Clinton 
administration we had $5 trillion in surplus, and it went out the 
window with Bush tax cuts and wars that we could not pay for.
  So I stand here today to say that working class and the vulnerable 
will have their unemployment insurance and earned income tax and cuts 
in their taxes that they really need, but we still have work to do. I 
want to make sure that we restore some very serious cuts that impact on 
the health care of Americans.
  We have work to do on the sequestration. Our fight is the same fight 
that Richard Trumka has with the AFL-CIO. We're here to make sure that 
the working Americans, the most vulnerable, do not pay for the rich 
getting richer. We're going to fight against Social Security cuts and 
Medicare cuts and Medicaid cuts.
  What we have to do today is to make sure that we can go forward, but 
we should not do it without the understanding that there's some 
restoration work and there's some fight work in the sequestration. It 
will not be done on the backs of those who cannot pay. But we will work 
together as Americans to make things better. That is what I hope we 
will see as we go forward.
  I want to thank the Senate for putting that bill forward that now we 
have to address.
  Ms. SLAUGHTER. Mr. Speaker, when I spoke earlier, I referred to a 
letter that we had sent to the Speaker, and I would like to insert that 
in the Record.

                                                    July 25, 2012.
       Dear Mr. Speaker and Chairs of the Committees: As the 
     senior Democratic Members of the Committees of the House, we 
     call upon the Republican Leadership and the Chairs of our 
     respective committees to begin immediate negotiations with 
     Democrats on replacing the scheduled 2013 sequester with a 
     balanced deficit reduction plan. We all agree that a 
     sequester starting in January, 2013 is not in the country's 
     best interest and is not the best way to assure responsible 
     deficit reduction. The American people want us to work 
     together to avoid unnecessary economic uncertainty at this 
     crucial time in our recovery. Failure to reach an agreement 
     would have devastating consequences for our economy, small 
     business and the middle class.
       The looming possibility of a January, 2013 sequester is 
     already creating uncertainty in our economy. Working together 
     and in good faith, Democrats and Republicans can negotiate an 
     alternative to the defense and non-defense discretionary 
     sequester as well as the mandatory sequester for fiscal year 
     2013. We are confident that we can identify revenue sources 
     and prioritize investments in a bipartisan fashion to avoid 
     the sequester while achieving our deficit reduction goals.
       We look forward to hearing from you and sitting down to 
     negotiate an alternative to the sequester. We strongly 
     recommend that this bipartisan process begin before the 
     August recess so that the American people can be reassured 
     before September 30 that the sequester will not take effect.
           Best regards,
         Collin C. Peterson, Ranking Member, House Committee on 
           Agriculture; Norman D. Dicks, Ranking Member, House 
           Committee on Appropriations; Adam Smith, Ranking 
           Member, House Armed Services Committee; Chris Van 
           Hollen, Ranking Member, House Committee on the Budget; 
           George Miller, Ranking Member, House Committee on 
           Education & the Workforce; Henry Waxman, Ranking 
           Member, House Energy & Commerce Committee; Linda 
           Sanchez, Ranking Member, House Committee on Ethics; 
           Barney Frank, Ranking Member, House Committee on 
           Financial Services; Howard Berman, Ranking Member, 
           House Committee on Foreign Affairs; Bennie G. Thompson, 
           Ranking Member, House Committee on Homeland Security; 
           Robert A. Brady, Ranking Member, House Committee on 
           Administration; John Conyers, Ranking Member, House 
           Committee on the Judiciary; Edward Markey, Ranking 
           Member, House Committee on Natural Resources; Elijah 
           Cummings, Ranking Member, House Committee on Oversight 
           and Government Reform; Louise Slaughter, Ranking 
           Member, House Committee on Rules; Eddie Bernice 
           Johnson, Ranking Member, House Committee on Science, 
           Space, & Technology; Nydia M. Velazquez, Ranking 
           Member, House Committee on Small Business; Nick Rahall, 
           Ranking Member, House Committee on Transportation & 
           Infrastructure; Bob Filner, Ranking Member, House 
           Committee on Veterans' Affairs; Sander Levin, Ranking 
           Member, House Committee on

[[Page 18585]]

           Ways and Means; C.A. Dutch Ruppersberger, Ranking 
           Member, Permanent Select Committee on Intelligence.

  I am happy to yield 1 minute to the gentlewoman from Ohio (Ms. 
Kaptur).
  Ms. KAPTUR. I thank the ranking member for yielding.
  Tonight, the American people's hopes are for this Congress to pass a 
bipartisan bill to meet our Nation's financial obligations to give some 
certainty to our financial markets and to keep our economy growing 
through new job creation. This is a great victory for the middle class 
whose taxes will not go up tomorrow.
  In places like Ohio, what does it mean? It means doctors who treat 
Medicare patients are going to receive fair reimbursement and those 
seniors won't be turned away. It means that unemployment compensation 
will be extended to the unemployed, who remain in places like Norwalk, 
Ohio, and Lima and Medina and Elyria, people who haven't gone back to 
work yet in manufacturing centers across States like Ohio.
  This House surely should follow the lead of the Senate, which passed 
this bill by 89-8 last night. This is the time for the House to act. I 
rise in strong support of the rule and strong support of the bill. 
Let's do what the American people have been waiting for for months.


                             General Leave

  Mr. DREIER. Mr. Speaker, I'd like to ask unanimous consent that all 
Members have--traditionally, I would ask for 5 legislative days in 
which to revise and extend their remarks on the measure before us, but 
since the new Congress is going to be sworn in at noon on Thursday, I 
ask that all the legislative days remaining in the 112th Congress be 
provided for Members to revise and extend their remarks on this 
resolution before us.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from California?
  There was no objection.
  Mr. DREIER. With that, I reserve the balance of my time.
  Ms. SLAUGHTER. Mr. Speaker, I yield 1 minute to the gentleman from 
Georgia (Mr. Scott).
  Mr. DAVID SCOTT of Georgia. Ladies and gentlemen of the Congress and 
United States of America, we stand here today and we're witnessing 
something that there has been a great hunger among the American people 
for, and that is to see, finally, Democrats and Republicans working 
together for the good of the United States. We're going to have that 
today. We're going to have a bill--all may not vote for it, but I think 
what is important here is that this is a product of a true compromise, 
with Republicans and with Democrats putting the United States of 
America foremost.
  I think we ought to have a tip of the hat to President Barack Obama, 
I think to Leader McConnell in the Senate, and certainly to our Vice 
President, Joe Biden, and to the leadership of Nancy Pelosi, Steny 
Hoyer, and Jim Clyburn over on our side. I know that our Republican 
friends have had a tussle here, but our tip of the hat to you as well, 
and certainly to my friend, David Dreier, who is in his ending time as 
chairman of the Rules Committee. Good luck, my friend.
  Ms. SLAUGHTER. Mr. Speaker, I'm pleased to yield 1 minute to the 
gentleman from Tennessee (Mr. Cohen).
  Mr. COHEN. I appreciate the moment.
  This has been a very interesting couple of days, ones that I would 
normally have spent with friends in Memphis, drinking champagne and 
looking forward to the new year.
  It's been an honor serving with you, Mr. Dreier. You are an 
outstanding Member, as Ms. Slaughter said. There are lots of people in 
the other aisle--Mr. Coble behind you--fine Republicans whom I'm 
friends with and think the world of, but I'm just happy this day has 
ended the way it is, kind of a Tiny Tim world. It's just good the way 
it ended up. Somehow or another, whether it be the fates or Speaker 
Boehner's abilities to work things from magic, we're going to end up 
not falling off the fiscal cliff, and I think that's wonderful.
  So I thank Ms. Slaughter for the time, and I thank Speaker Boehner 
for whatever he's done to produce what I expect will be a positive 
result for the American people.
  Mr. DREIER. Mr. Speaker, I'll continue to reserve the balance of my 
time.
  Ms. SLAUGHTER. Mr. Speaker, if I could inform my colleague, I have no 
further requests for time and I'm prepared to close if he has no 
further speakers.
  Mr. Speaker, failure to avert the fiscal cliff could lead the Nation 
back into an economic recession and create the largest displacement of 
workers in the Nation's history. The dangers are avoidable, and it is 
our solemn obligation to avert the fiscal cliff and protect the 
American people.

                              {time}  2110

  As I said earlier, today's legislation is far from perfect; but in 
this time of crisis, legislators must act. In the months to come, we 
will face more fiscal challenges and be asked to act again. When that 
time comes, I hope that we will avoid the brinksmanship that we have 
seen to date and come to the table in good faith. If we do, I'm 
confident that we can finish our work and provide solutions for a 
better future for America.
  I yield back the balance of my time.
  Mr. DREIER. Mr. Speaker, with that, I yield myself the balance of the 
time.
  Mr. Speaker, on the 29th of February of this year, I stood here in 
this well and announced that I was leaving Congress. And when I did 
that, I said that this institution is as great as it has ever been. The 
reason I said that is that Congress is a reflection of the people; and 
it means that when America is divided, Congress is divided. That 
doesn't mean that we, as leaders, Mr. Speaker, can't work to bridge 
this divide.
  While political division is a current reality, it is not our fate. I 
believe that, as an institution, Congress can and must forge new 
consensus and restore hope and optimism for future generations. 
Optimism, Mr. Speaker, as you know very well, is what we, as Americans, 
are all about. And I've got to tell you, Mr. Speaker, that that 
optimism has been validated again and again and again. Actually, there 
are positive signs. While it gets very little attention, we have come 
together to craft solutions.
  The issue that I've been involved in that, frankly, has been the most 
unifying issue around here for us has been the trade issue. A year ago, 
Democrats and Republicans came together and passed our long pending--
they'd been pending for over half a decade--our free trade agreements 
with Colombia, Panama and South Korea with strong bipartisan votes. 
Additionally, Mr. Speaker, our very first action following November's 
very, very deeply polarizing election was to join together to 
strengthen our hand against Russia's outrageous actions by passing 
Permanent Normal Trade Relations. We did it with one of the largest 
bipartisan and bicameral votes that a trade bill has ever seen. Mr. 
Speaker, I would like to make the case that these consensus-driven 
solutions should be a model for the 113th Congress.
  Today, we are proceeding with a critical step to avert a serious 
economic downturn; but this is only the beginning of the work that must 
be done, as we all know. Ultimately, Mr. Speaker, we must reach an 
agreement that combines, as I said earlier, meaningful entitlement 
reform with new revenues in a way that puts us back on a path towards 
growth and prosperity.
  If we're going to accomplish this, we must work together--Republicans 
and Democrats, Congress and the White House, the Federal Government and 
the States, the public sector and the private sector. Now, Mr. Speaker, 
some might say that saying those things is a cliche. But, as we all 
know, Members are going to have to engage in rigorous debate, and there 
needs to be that clash of ideas, a rigorous debate; but it needs to be 
done in good faith and with a spirit of compromise.
  Now, I realize that some argue that ``compromise'' is a sign of 
weakness. In fact, one of the great strengths, Mr. Speaker, of our 
Nation's Founders was their ability to compromise. The very structure 
of this institution, the

[[Page 18586]]

United States Congress, the very structure of our institution which 
joins the people's House where we're all privileged to serve with the 
State-focused United States Senate was known as what? The Connecticut 
Compromise or the Great Compromise. That's the very basis of our 
Founders. Too often, we forget that while we should never--we should 
never compromise our principles, we must always, Mr. Speaker, we must 
always be prepared to compromise in the service of our principles.
  A couple of weeks ago, ``The Economist'' described another example of 
compromise, this one in what Justice Brandeis described as one of the 
``laboratories of democracy,'' that being the State of Georgia. The 
conservative Republican Governor, our former House colleague, Nathan 
Deal, and the liberal mayor of Atlanta, Kasim Reed, are clearly at 
opposite ends of the political spectrum. Yet they have managed to 
bridge that divide through a commitment to results. Mr. Speaker, 
together, they have achieved significant gains for the good of Georgia.
  Mr. Speaker, Congress and the White House are perfectly capable of 
following that same model for the good of our country. Americans may be 
politically divided, but they are united in their desire to see their 
leaders in Washington achieve results.
  Now, Mr. Speaker, we know it's far from perfect, but I hope that this 
bipartisan agreement can lay the foundation for continued work to 
address the tremendous challenges that we face as a Nation. Millions of 
Americans are out of work. The national debt as a percentage of gross 
domestic product is too high. Upheaval exists in nearly every region 
across the globe. Education and immigration reform must happen. The 
potential for a crippling cyberattack continues to be a threat. Climate 
change is a fact of life. And most recently, Mr. Speaker, our families 
are reeling from the tragedy of Newtown. They're asking how we can 
prevent it from ever happening again and how we can keep guns from 
getting into the hands of dangerous people.
  These are the great challenges to which we all must rise, for which 
we all must find real solutions. I look forward to continuing to do my 
small part as I follow the Madisonian directive and return to 
California as a private citizen. It's been an incredible honor, Mr. 
Speaker, an incredible honor for me to serve in what I describe--even 
though the Senate often takes this label--as the greatest deliberative 
body known to man, and I consider it an amazing honor to be able to 
serve here.
  Now, as I depart, and I hope that there is no correlation to my 
departure, I believe that the United States Congress can actually be 
better than it has ever been.
  With that, I yield back the balance of my time, and I move the 
previous question on the resolution.
  The previous question was ordered.
  The SPEAKER pro tempore. The question is on the resolution.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.
  Mr. DREIER. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The vote was taken by electronic device, and there were--yeas 408, 
nays 10, not voting 14, as follows:

                             [Roll No. 658]

                               YEAS--408

     Ackerman
     Adams
     Aderholt
     Akin
     Alexander
     Altmire
     Amash
     Amodei
     Andrews
     Austria
     Baca
     Bachmann
     Bachus
     Baldwin
     Barber
     Barletta
     Bartlett
     Barton (TX)
     Bass (CA)
     Becerra
     Benishek
     Berg
     Berkley
     Berman
     Biggert
     Bilbray
     Bilirakis
     Bishop (GA)
     Bishop (NY)
     Bishop (UT)
     Black
     Blackburn
     Boehner
     Bonamici
     Bonner
     Bono Mack
     Boren
     Boswell
     Boustany
     Brady (PA)
     Brady (TX)
     Braley (IA)
     Brooks
     Broun (GA)
     Brown (FL)
     Buchanan
     Bucshon
     Buerkle
     Burgess
     Butterfield
     Calvert
     Camp
     Canseco
     Cantor
     Capito
     Capps
     Capuano
     Carnahan
     Carney
     Carson (IN)
     Carter
     Cassidy
     Castor (FL)
     Chabot
     Chaffetz
     Chandler
     Chu
     Cicilline
     Clarke (MI)
     Clarke (NY)
     Cleaver
     Clyburn
     Coble
     Coffman (CO)
     Cohen
     Cole
     Conaway
     Connolly (VA)
     Cooper
     Costa
     Costello
     Courtney
     Cravaack
     Crawford
     Crenshaw
     Critz
     Crowley
     Cuellar
     Culberson
     Cummings
     Curson (MI)
     Davis (CA)
     Davis (IL)
     DeGette
     DeLauro
     DelBene
     Denham
     Dent
     DesJarlais
     Deutch
     Diaz-Balart
     Dicks
     Dingell
     Doggett
     Dold
     Donnelly (IN)
     Doyle
     Dreier
     Duffy
     Duncan (SC)
     Duncan (TN)
     Edwards
     Ellison
     Ellmers
     Emerson
     Engel
     Eshoo
     Farenthold
     Farr
     Fattah
     Fincher
     Fitzpatrick
     Flake
     Fleischmann
     Fleming
     Flores
     Forbes
     Fortenberry
     Foxx
     Frank (MA)
     Franks (AZ)
     Frelinghuysen
     Fudge
     Gallegly
     Garamendi
     Gardner
     Garrett
     Gerlach
     Gibbs
     Gibson
     Gingrey (GA)
     Gohmert
     Gonzalez
     Goodlatte
     Gosar
     Gowdy
     Granger
     Graves (GA)
     Graves (MO)
     Green, Al
     Green, Gene
     Griffin (AR)
     Griffith (VA)
     Grimm
     Guinta
     Guthrie
     Gutierrez
     Hahn
     Hall
     Hanabusa
     Hanna
     Harper
     Harris
     Hartzler
     Hastings (FL)
     Hastings (WA)
     Hayworth
     Heck
     Heinrich
     Hensarling
     Herger
     Herrera Beutler
     Higgins
     Himes
     Hinchey
     Hinojosa
     Hochul
     Holden
     Holt
     Honda
     Hoyer
     Huelskamp
     Huizenga (MI)
     Hultgren
     Hunter
     Hurt
     Israel
     Issa
     Jackson Lee (TX)
     Jenkins
     Johnson (GA)
     Johnson (IL)
     Johnson (OH)
     Johnson, E. B.
     Johnson, Sam
     Jones
     Jordan
     Kaptur
     Keating
     Kelly
     Kildee
     Kind
     King (IA)
     King (NY)
     Kingston
     Kinzinger (IL)
     Kissell
     Kline
     Kucinich
     Labrador
     Lamborn
     Lance
     Landry
     Langevin
     Lankford
     Larsen (WA)
     Larson (CT)
     Latham
     LaTourette
     Latta
     Lee (CA)
     Levin
     Lipinski
     LoBiondo
     Loebsack
     Lofgren, Zoe
     Long
     Lowey
     Lucas
     Luetkemeyer
     Lujan
     Lummis
     Lungren, Daniel E.
     Lynch
     Mack
     Maloney
     Manzullo
     Marchant
     Marino
     Markey
     Massie
     Matheson
     Matsui
     McCarthy (CA)
     McCarthy (NY)
     McCaul
     McClintock
     McCollum
     McGovern
     McHenry
     McIntyre
     McKeon
     McKinley
     McMorris Rodgers
     McNerney
     Meehan
     Meeks
     Mica
     Michaud
     Miller (FL)
     Miller (MI)
     Miller (NC)
     Miller, Gary
     Miller, George
     Moore
     Mulvaney
     Murphy (CT)
     Murphy (PA)
     Myrick
     Nadler
     Napolitano
     Neal
     Neugebauer
     Noem
     Nugent
     Nunes
     Olson
     Olver
     Owens
     Palazzo
     Pallone
     Pascrell
     Pastor (AZ)
     Paulsen
     Payne
     Pearce
     Pelosi
     Pence
     Perlmutter
     Peters
     Petri
     Pingree (ME)
     Pitts
     Platts
     Poe (TX)
     Polis
     Pompeo
     Price (GA)
     Price (NC)
     Quayle
     Quigley
     Rahall
     Rangel
     Reed
     Rehberg
     Reichert
     Renacci
     Reyes
     Ribble
     Richardson
     Richmond
     Rigell
     Rivera
     Roby
     Roe (TN)
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Rokita
     Rooney
     Ros-Lehtinen
     Roskam
     Ross (AR)
     Ross (FL)
     Rothman (NJ)
     Roybal-Allard
     Royce
     Runyan
     Ruppersberger
     Rush
     Ryan (OH)
     Ryan (WI)
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Scalise
     Schakowsky
     Schiff
     Schilling
     Schock
     Schrader
     Schwartz
     Schweikert
     Scott (SC)
     Scott, Austin
     Scott, David
     Sensenbrenner
     Serrano
     Sessions
     Sewell
     Sherman
     Shimkus
     Shuler
     Shuster
     Simpson
     Sires
     Slaughter
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Southerland
     Speier
     Stearns
     Stivers
     Stutzman
     Sullivan
     Sutton
     Terry
     Thompson (CA)
     Thompson (MS)
     Thompson (PA)
     Thornberry
     Tiberi
     Tierney
     Tipton
     Tonko
     Towns
     Tsongas
     Turner (NY)
     Turner (OH)
     Upton
     Van Hollen
     Velazquez
     Walberg
     Walden
     Walsh (IL)
     Walz (MN)
     Wasserman Schultz
     Waters
     Watt
     Waxman
     Webster
     Welch
     West
     Westmoreland
     Wilson (FL)
     Wilson (SC)
     Wittman
     Wolf
     Womack
     Woodall
     Yarmuth
     Yoder
     Young (AK)
     Young (FL)
     Young (IN)

                                NAYS--10

     Barrow
     Blumenauer
     DeFazio
     McDermott
     Moran
     Peterson
     Posey
     Schmidt
     Scott (VA)
     Visclosky

                             NOT VOTING--14

     Bass (NH)
     Burton (IN)
     Campbell
     Clay
     Conyers
     Grijalva
     Hirono
     Lewis (CA)
     Lewis (GA)
     Nunnelee
     Paul
     Stark
     Whitfield
     Woolsey

                              {time}  2139

  Mr. McDERMOTT changed his vote from ``yea'' to ``nay.''
  Messrs. CHAFFETZ and RANGEL changed their vote from ``nay'' to 
``yea.''
  So the resolution was agreed to.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.
  Mr. CAMP. Mr. Speaker, pursuant to House Resolution 844, I call up 
the bill

[[Page 18587]]

(H.R. 8) to extend certain tax relief provisions enacted in 2001 and 
2003, and to provide for expedited consideration of a bill providing 
for comprehensive tax reform, and for other purposes, with the Senate 
amendments thereto, and I have a motion at the desk.
  The Clerk read the title of the bill.
  The SPEAKER pro tempore (Mr. Womack). The Clerk will designate the 
Senate amendments.
  The text of the Senate amendments is as follows:

       Senate amendments:
       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE, ETC.

       (a) Short Title.--This Act may be cited as the ``American 
     Taxpayer Relief Act of 2012''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.
       (c) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title, etc.

                      TITLE I--GENERAL EXTENSIONS

Sec. 101. Permanent extension and modification of 2001 tax relief.
Sec. 102. Permanent extension and modification of 2003 tax relief.
Sec. 103. Extension of 2009 tax relief.
Sec. 104. Permanent alternative minimum tax relief.

                   TITLE II--INDIVIDUAL TAX EXTENDERS

Sec. 201. Extension of deduction for certain expenses of elementary and 
              secondary school teachers.
Sec. 202. Extension of exclusion from gross income of discharge of 
              qualified principal residence indebtedness.
Sec. 203. Extension of parity for exclusion from income for employer-
              provided mass transit and parking benefits.
Sec. 204. Extension of mortgage insurance premiums treated as qualified 
              residence interest.
Sec. 205. Extension of deduction of State and local general sales 
              taxes.
Sec. 206. Extension of special rule for contributions of capital gain 
              real property made for conservation purposes.
Sec. 207. Extension of above-the-line deduction for qualified tuition 
              and related expenses.
Sec. 208. Extension of tax-free distributions from individual 
              retirement plans for charitable purposes.
Sec. 209. Improve and make permanent the provision authorizing the 
              Internal Revenue Service to disclose certain return and 
              return information to certain prison officials.

                   TITLE III--BUSINESS TAX EXTENDERS

Sec. 301. Extension and modification of research credit.
Sec. 302. Extension of temporary minimum low-income tax credit rate for 
              non-federally subsidized new buildings.
Sec. 303. Extension of housing allowance exclusion for determining area 
              median gross income for qualified residential rental 
              project exempt facility bonds.
Sec. 304. Extension of Indian employment tax credit.
Sec. 305. Extension of new markets tax credit.
Sec. 306. Extension of railroad track maintenance credit.
Sec. 307. Extension of mine rescue team training credit.
Sec. 308. Extension of employer wage credit for employees who are 
              active duty members of the uniformed services.
Sec. 309. Extension of work opportunity tax credit.
Sec. 310. Extension of qualified zone academy bonds.
Sec. 311. Extension of 15-year straight-line cost recovery for 
              qualified leasehold improvements, qualified restaurant 
              buildings and improvements, and qualified retail 
              improvements.
Sec. 312. Extension of 7-year recovery period for motorsports 
              entertainment complexes.
Sec. 313. Extension of accelerated depreciation for business property 
              on an Indian reservation.
Sec. 314. Extension of enhanced charitable deduction for contributions 
              of food inventory.
Sec. 315. Extension of increased expensing limitations and treatment of 
              certain real property as section 179 property.
Sec. 316. Extension of election to expense mine safety equipment.
Sec. 317. Extension of special expensing rules for certain film and 
              television productions.
Sec. 318. Extension of deduction allowable with respect to income 
              attributable to domestic production activities in Puerto 
              Rico.
Sec. 319. Extension of modification of tax treatment of certain 
              payments to controlling exempt organizations.
Sec. 320. Extension of treatment of certain dividends of regulated 
              investment companies.
Sec. 321. Extension of RIC qualified investment entity treatment under 
              FIRPTA.
Sec. 322. Extension of subpart F exception for active financing income.
Sec. 323. Extension of look-thru treatment of payments between related 
              controlled foreign corporations under foreign personal 
              holding company rules.
Sec. 324. Extension of temporary exclusion of 100 percent of gain on 
              certain small business stock.
Sec. 325. Extension of basis adjustment to stock of S corporations 
              making charitable contributions of property.
Sec. 326. Extension of reduction in S-corporation recognition period 
              for built-in gains tax.
Sec. 327. Extension of empowerment zone tax incentives.
Sec. 328. Extension of tax-exempt financing for New York Liberty Zone.
Sec. 329. Extension of temporary increase in limit on cover over of rum 
              excise taxes to Puerto Rico and the Virgin Islands.
Sec. 330. Modification and extension of American Samoa economic 
              development credit.
Sec. 331. Extension and modification of bonus depreciation.

                     TITLE IV--ENERGY TAX EXTENDERS

Sec. 401. Extension of credit for energy-efficient existing homes.
Sec. 402. Extension of credit for alternative fuel vehicle refueling 
              property.
Sec. 403. Extension of credit for 2- or 3-wheeled plug-in electric 
              vehicles.
Sec. 404. Extension and modification of cellulosic biofuel producer 
              credit.
Sec. 405. Extension of incentives for biodiesel and renewable diesel.
Sec. 406. Extension of production credit for Indian coal facilities 
              placed in service before 2009.
Sec. 407. Extension and modification of credits with respect to 
              facilities producing energy from certain renewable 
              resources.
Sec. 408. Extension of credit for energy-efficient new homes.
Sec. 409. Extension of credit for energy-efficient appliances.
Sec. 410. Extension and modification of special allowance for 
              cellulosic biofuel plant property.
Sec. 411. Extension of special rule for sales or dispositions to 
              implement FERC or State electric restructuring policy for 
              qualified electric utilities.
Sec. 412. Extension of alternative fuels excise tax credits.

                         TITLE V--UNEMPLOYMENT

Sec. 501. Extension of emergency unemployment compensation program.
Sec. 502. Temporary extension of extended benefit provisions.
Sec. 503. Extension of funding for reemployment services and 
              reemployment and eligibility assessment activities.
Sec. 504. Additional extended unemployment benefits under the Railroad 
              Unemployment Insurance Act.

             TITLE VI--MEDICARE AND OTHER HEALTH EXTENSIONS

                    Subtitle A--Medicare Extensions

Sec. 601. Medicare physician payment update.
Sec. 602. Work geographic adjustment.
Sec. 603. Payment for outpatient therapy services.
Sec. 604. Ambulance add-on payments.
Sec. 605. Extension of Medicare inpatient hospital payment adjustment 
              for low-volume hospitals.
Sec. 606. Extension of the Medicare-dependent hospital (MDH) program.
Sec. 607. Extension for specialized Medicare Advantage plans for 
              special needs individuals.
Sec. 608. Extension of Medicare reasonable cost contracts.
Sec. 609. Performance improvement.
Sec. 610. Extension of funding outreach and assistance for low-income 
              programs.

                  Subtitle B--Other Health Extensions

Sec. 621. Extension of the qualifying individual (QI) program.
Sec. 622. Extension of Transitional Medical Assistance (TMA).
Sec. 623. Extension of Medicaid and CHIP Express Lane option.
Sec. 624. Extension of family-to-family health information centers.
Sec. 625. Extension of Special Diabetes Program for Type I diabetes and 
              for Indians.

                  Subtitle C--Other Health Provisions

Sec. 631. IPPS documentation and coding adjustment for implementation 
              of MS-DRGs.
Sec. 632. Revisions to the Medicare ESRD bundled payment system to 
              reflect findings in the GAO report.
Sec. 633. Treatment of multiple service payment policies for therapy 
              services.
Sec. 634. Payment for certain radiology services furnished under the 
              Medicare hospital outpatient department prospective 
              payment system.
Sec. 635. Adjustment of equipment utilization rate for advanced imaging 
              services.

[[Page 18588]]

Sec. 636. Medicare payment of competitive prices for diabetic supplies 
              and elimination of overpayment for diabetic supplies.
Sec. 637. Medicare payment adjustment for non-emergency ambulance 
              transports for ESRD beneficiaries.
Sec. 638. Removing obstacles to collection of overpayments.
Sec. 639. Medicare advantage coding intensity adjustment.
Sec. 640. Elimination of all funding for the Medicare Improvement Fund.
Sec. 641. Rebasing of State DSH allotments.
Sec. 642. Repeal of CLASS program.
Sec. 643. Commission on Long-Term Care.
Sec. 644. Consumer Operated and Oriented Plan program contingency fund.

             TITLE VII--EXTENSION OF AGRICULTURAL PROGRAMS

Sec. 701. 1-year extension of agricultural programs.
Sec. 702. Supplemental agricultural disaster assistance.

                  TITLE VIII--MISCELLANEOUS PROVISIONS

Sec. 801. Strategic delivery systems.
Sec. 802. No cost of living adjustment in pay of members of congress.

                      TITLE IX--BUDGET PROVISIONS

               Subtitle A--Modifications of Sequestration

Sec. 901. Treatment of sequester.
Sec. 902. Amounts in applicable retirement plans may be transferred to 
              designated Roth accounts without distribution.

                     Subtitle B--Budgetary Effects

Sec. 911. Budgetary effects.

                      TITLE I--GENERAL EXTENSIONS

     SEC. 101. PERMANENT EXTENSION AND MODIFICATION OF 2001 TAX 
                   RELIEF.

       (a) Permanent Extension.--
       (1) In general.--The Economic Growth and Tax Relief 
     Reconciliation Act of 2001 is amended by striking title IX.
       (2) Conforming amendment.--The Tax Relief, Unemployment 
     Insurance Reauthorization, and Job Creation Act of 2010 is 
     amended by striking section 304.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to taxable, plan, or limitation years beginning 
     after December 31, 2012, and estates of decedents dying, 
     gifts made, or generation skipping transfers after December 
     31, 2012.
       (b) Application of Income Tax to Certain High-Income 
     Taxpayers.--
       (1) Income tax rates.--
       (A) Treatment of 25-, 28-, and 33-percent rate brackets.--
     Paragraph (2) of section 1(i) is amended to read as follows:
       ``(2) 25-, 28-, and 33-percent rate brackets.--The tables 
     under subsections (a), (b), (c), (d), and (e) shall be 
     applied--
       ``(A) by substituting `25%' for `28%' each place it appears 
     (before the application of subparagraph (B)),
       ``(B) by substituting `28%' for `31%' each place it 
     appears, and
       ``(C) by substituting `33%' for `36%' each place it 
     appears.''.
       (B) 35-percent rate bracket.--Subsection (i) of section 1 
     is amended by redesignating paragraph (3) as paragraph (4) 
     and by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) Modifications to income tax brackets for high-income 
     taxpayers.--
       ``(A) 35-percent rate bracket.--In the case of taxable 
     years beginning after December 31, 2012--
       ``(i) the rate of tax under subsections (a), (b), (c), and 
     (d) on a taxpayer's taxable income in the highest rate 
     bracket shall be 35 percent to the extent such income does 
     not exceed an amount equal to the excess of--

       ``(I) the applicable threshold, over
       ``(II) the dollar amount at which such bracket begins, and

       ``(ii) the 39.6 percent rate of tax under such subsections 
     shall apply only to the taxpayer's taxable income in such 
     bracket in excess of the amount to which clause (i) applies.
       ``(B) Applicable threshold.--For purposes of this 
     paragraph, the term `applicable threshold' means--
       ``(i) $450,000 in the case of subsection (a),
       ``(ii) $425,000 in the case of subsection (b),
       ``(iii) $400,000 in the case of subsection (c), and
       ``(iv) \1/2\ the amount applicable under clause (i) (after 
     adjustment, if any, under subparagraph (C)) in the case of 
     subsection (d).
       ``(C) Inflation adjustment.--For purposes of this 
     paragraph, with respect to taxable years beginning in 
     calendar years after 2013, each of the dollar amounts under 
     clauses (i), (ii), and (iii) of subparagraph (B) shall be 
     adjusted in the same manner as under paragraph (1)(C)(i), 
     except that subsection (f)(3)(B) shall be applied by 
     substituting `2012' for `1992'.''.
       (2) Phaseout of personal exemptions and itemized 
     deductions.--
       (A) Overall limitation on itemized deductions.--Section 68 
     is amended--
       (i) by striking subsection (b) and inserting the following:
       ``(b) Applicable Amount.--
       ``(1) In general.--For purposes of this section, the term 
     `applicable amount' means--
       ``(A) $300,000 in the case of a joint return or a surviving 
     spouse (as defined in section 2(a)),
       ``(B) $275,000 in the case of a head of household (as 
     defined in section 2(b)),
       ``(C) $250,000 in the case of an individual who is not 
     married and who is not a surviving spouse or head of 
     household, and
       ``(D) \1/2\ the amount applicable under subparagraph (A) 
     (after adjustment, if any, under paragraph (2)) in the case 
     of a married individual filing a separate return.
     For purposes of this paragraph, marital status shall be 
     determined under section 7703.
       ``(2) Inflation adjustment.--In the case of any taxable 
     year beginning in calendar years after 2013, each of the 
     dollar amounts under subparagraphs (A), (B), and (C) of 
     paragraph (1) shall be shall be increased by an amount equal 
     to--
       ``(A) such dollar amount, multiplied by
       ``(B) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, except that section 1(f)(3)(B) shall be applied 
     by substituting `2012' for `1992'.
     If any amount after adjustment under the preceding sentence 
     is not a multiple of $50, such amount shall be rounded to the 
     next lowest multiple of $50.'', and
       (ii) by striking subsections (f) and (g).
       (B) Phaseout of deductions for personal exemptions.--
       (i) In general.--Paragraph (3) of section 151(d) is 
     amended--

       (I) by striking ``the threshold amount'' in subparagraphs 
     (A) and (B) and inserting ``the applicable amount in effect 
     under section 68(b)'',
       (II) by striking subparagraph (C) and redesignating 
     subparagraph (D) as subparagraph (C), and
       (III) by striking subparagraphs (E) and (F).

       (ii) Conforming amendments.--Paragraph (4) of section 
     151(d) is amended--

       (I) by striking subparagraph (B),
       (II) by redesignating clauses (i) and (ii) of subparagraph 
     (A) as subparagraphs (A) and (B), respectively, and by 
     indenting such subparagraphs (as so redesignated) 
     accordingly, and
       (III) by striking all that precedes ``in a calendar year 
     after 1989,'' and inserting the following:

       ``(4) Inflation adjustment.--In the case of any taxable 
     year beginning''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2012.
       (c) Modifications of Estate Tax.--
       (1) Maximum estate tax rate equal to 40 percent.--The table 
     contained in subsection (c) of section 2001, as amended by 
     section 302(a)(2) of the Tax Relief, Unemployment Insurance 
     Reauthorization, and Job Creation Act of 2010, is amended by 
     striking ``Over $500,000'' and all that follows and inserting 
     the following:


``Over $500,000 but not over $750,000........  $155,800, plus 37 percent of the excess of such amount over
                                                $500,000.
Over $750,000 but not over $1,000,000........  $248,300, plus 39 percent of the excess of such amount over
                                                $750,000.
Over $1,000,000..............................  $345,800, plus 40 percent of the excess of such amount over
                                                $1,000,000.''.
 
 

       (2) Technical correction.--Clause (i) of section 
     2010(c)(4)(B) is amended by striking ``basic exclusion 
     amount'' and inserting ``applicable exclusion amount''.
       (3) Effective dates.--
       (A) In general.--Except as otherwise provided by in this 
     paragraph, the amendments made by this subsection shall apply 
     to estates of decedents dying, generation-skipping transfers, 
     and gifts made, after December 31, 2012.
       (B) Technical correction.--The amendment made by paragraph 
     (2) shall take effect as if included in the amendments made 
     by section 303 of the Tax Relief, Unemployment Insurance 
     Reauthorization, and Job Creation Act of 2010.

     SEC. 102. PERMANENT EXTENSION AND MODIFICATION OF 2003 TAX 
                   RELIEF.

       (a) Permanent Extension.--The Jobs and Growth Tax Relief 
     Reconciliation Act of 2003 is amended by striking section 
     303.
       (b) 20-Percent Capital Gains Rate for Certain High Income 
     Individuals.--
       (1) In general.--Paragraph (1) of section 1(h) is amended 
     by striking subparagraph (C), by redesignating subparagraphs 
     (D) and (E) as subparagraphs (E) and (F) and by inserting 
     after subparagraph (B) the following new subparagraphs:
       ``(C) 15 percent of the lesser of--
       ``(i) so much of the adjusted net capital gain (or, if 
     less, taxable income) as exceeds the amount on which a tax is 
     determined under subparagraph (B), or
       ``(ii) the excess of--

       ``(I) the amount of taxable income which would (without 
     regard to this paragraph) be taxed at a rate below 39.6 
     percent, over
       ``(II) the sum of the amounts on which a tax is determined 
     under subparagraphs (A) and (B),

       ``(D) 20 percent of the adjusted net capital gain (or, if 
     less, taxable income) in excess of the sum of the amounts on 
     which tax is determined under subparagraphs (B) and (C),''.
       (2) Minimum tax.--Paragraph (3) of section 55(b) is amended 
     by striking subparagraph (C),

[[Page 18589]]

     by redesignating subparagraph (D) as subparagraph (E), and by 
     inserting after subparagraph (B) the following new 
     subparagraphs:
       ``(C) 15 percent of the lesser of--
       ``(i) so much of the adjusted net capital gain (or, if 
     less, taxable excess) as exceeds the amount on which tax is 
     determined under subparagraph (B), or
       ``(ii) the excess described in section 1(h)(1)(C)(ii), plus
       ``(D) 20 percent of the adjusted net capital gain (or, if 
     less, taxable excess) in excess of the sum of the amounts on 
     which tax is determined under subparagraphs (B) and (C), 
     plus''.
       (c) Conforming Amendments.--
       (1) The following provisions are each amended by striking 
     ``15 percent'' and inserting ``20 percent'':
       (A) Section 531.
       (B) Section 541.
       (C) Section 1445(e)(1).
       (D) The second sentence of section 7518(g)(6)(A).
       (E) Section 53511(f)(2) of title 46, United States Code.
       (2) Sections 1(h)(1)(B) and 55(b)(3)(B) are each amended by 
     striking ``5 percent (0 percent in the case of taxable years 
     beginning after 2007)'' and inserting ``0 percent''.
       (3) Section 1445(e)(6) is amended by striking ``15 percent 
     (20 percent in the case of taxable years beginning after 
     December 31, 2010)'' and inserting ``20 percent''.
       (d) Effective Dates.--
       (1) In general.--Except as otherwise provided, the 
     amendments made by subsections (b) and (c) shall apply to 
     taxable years beginning after December 31, 2012.
       (2) Withholding.--The amendments made by paragraphs (1)(C) 
     and (3) of subsection (c) shall apply to amounts paid on or 
     after January 1, 2013.

     SEC. 103. EXTENSION OF 2009 TAX RELIEF.

       (a) 5-year Extension of American Opportunity Tax Credit.--
       (1) In general.--Section 25A(i) is amended by striking ``in 
     2009, 2010, 2011, or 2012'' and inserting ``after 2008 and 
     before 2018''.
       (2) Treatment of possessions.--Section 1004(c)(1) of 
     division B of the American Recovery and Reinvestment Tax Act 
     of 2009 is amended by striking ``in 2009, 2010, 2011, and 
     2012'' each place it appears and inserting ``after 2008 and 
     before 2018''.
       (b) 5-year Extension of Child Tax Credit.--Section 24(d)(4) 
     is amended--
       (1) by striking ``2009, 2010, 2011, and 2012'' in the 
     heading and inserting ``for certain years'', and
       (2) by striking ``in 2009, 2010, 2011, or 2012'' and 
     inserting ``after 2008 and before 2018''.
       (c) 5-year Extension of Earned Income Tax Credit.--Section 
     32(b)(3) is amended--
       (1) by striking ``2009, 2010, 2011, and 2012'' in the 
     heading and inserting ``for certain years'', and
       (2) by striking ``in 2009, 2010, 2011, or 2012'' and 
     inserting ``after 2008 and before 2018''.
       (d) Permanent Extension of Rule Disregarding Refunds in the 
     Administration of Federal Programs and Federally Assisted 
     Programs.--Section 6409 is amended to read as follows:

     ``SEC. 6409. REFUNDS DISREGARDED IN THE ADMINISTRATION OF 
                   FEDERAL PROGRAMS AND FEDERALLY ASSISTED 
                   PROGRAMS.

       ``Notwithstanding any other provision of law, any refund 
     (or advance payment with respect to a refundable credit) made 
     to any individual under this title shall not be taken into 
     account as income, and shall not be taken into account as 
     resources for a period of 12 months from receipt, for 
     purposes of determining the eligibility of such individual 
     (or any other individual) for benefits or assistance (or the 
     amount or extent of benefits or assistance) under any Federal 
     program or under any State or local program financed in whole 
     or in part with Federal funds.''.
       (e) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to taxable years 
     beginning after December 31, 2012.
       (2) Rule regarding disregard of refunds.--The amendment 
     made by subsection (d) shall apply to amounts received after 
     December 31, 2012.

     SEC. 104. PERMANENT ALTERNATIVE MINIMUM TAX RELIEF.

       (a) 2012 Exemption Amounts Made Permanent.--
       (1) In general.--Paragraph (1) of section 55(d) is 
     amended--
       (A) by striking ``$45,000'' and all that follows through 
     ``2011)'' in subparagraph (A) and inserting ``$78,750'',
       (B) by striking ``$33,750'' and all that follows through 
     ``2011)'' in subparagraph (B) and inserting ``$50,600'', and
       (C) by striking ``paragraph (1)(A)'' in subparagraph (C) 
     and inserting ``subparagraph (A)''.
       (b) Exemption Amounts Indexed for Inflation.--
       (1) In general.--Subsection (d) of section 55 is amended by 
     adding at the end the following new paragraph:
       ``(4) Inflation adjustment.--
       ``(A) In general.--In the case of any taxable year 
     beginning in a calendar year after 2012, the amounts 
     described in subparagraph (B) shall each be increased by an 
     amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, determined by substituting `calendar year 2011' 
     for `calendar year 1992' in subparagraph (B) thereof.
       ``(B) Amounts described.--The amounts described in this 
     subparagraph are--
       ``(i) each of the dollar amounts contained in subsection 
     (b)(1)(A)(i),
       ``(ii) each of the dollar amounts contained in paragraph 
     (1), and
       ``(iii) each of the dollar amounts in subparagraphs (A) and 
     (B) of paragraph (3).
       ``(C) Rounding.--Any increase determined under subparagraph 
     (A) shall be rounded to the nearest multiple of $100.''.
       (2) Conforming amendments.--
       (A) Clause (iii) of section 55(b)(1)(A) is amended by 
     striking ``by substituting'' and all that follows through 
     ``appears.'' and inserting ``by substituting 50 percent of 
     the dollar amount otherwise applicable under subclause (I) 
     and subclause (II) thereof.''.
       (B) Paragraph (3) of section 55(d) is amended--
       (i) by striking ``or (2)'' in subparagraph (A),
       (ii) by striking ``and'' at the end of subparagraph (B), 
     and
       (iii) by striking subparagraph (C) and inserting the 
     following new subparagraphs:
       ``(C) 50 percent of the dollar amount applicable under 
     subparagraph (A) in the case of a taxpayer described in 
     subparagraph (C) or (D) of paragraph (1), and
       ``(D) $150,000 in the case of a taxpayer described in 
     paragraph (2).''.
       (c) Alternative Minimum Tax Relief for Nonrefundable 
     Credits.--
       (1) In general.--Subsection (a) of section 26 is amended to 
     read as follows:
       ``(a) Limitation Based on Amount of Tax.--The aggregate 
     amount of credits allowed by this subpart for the taxable 
     year shall not exceed the sum of--
       ``(1) the taxpayer's regular tax liability for the taxable 
     year reduced by the foreign tax credit allowable under 
     section 27(a), and
       ``(2) the tax imposed by section 55(a) for the taxable 
     year.''.
       (2) Conforming amendments.--
       (A) Adoption credit.--
       (i) Section 23(b) is amended by striking paragraph (4).
       (ii) Section 23(c) is amended by striking paragraphs (1) 
     and (2) and inserting the following:
       ``(1) In general.--If the credit allowable under subsection 
     (a) for any taxable year exceeds the limitation imposed by 
     section 26(a) for such taxable year reduced by the sum of the 
     credits allowable under this subpart (other than this section 
     and sections 25D and 1400C), such excess shall be carried to 
     the succeeding taxable year and added to the credit allowable 
     under subsection (a) for such taxable year.''.
       (iii) Section 23(c) is amended by redesignating paragraph 
     (3) as paragraph (2).
       (B) Child tax credit.--
       (i) Section 24(b) is amended by striking paragraph (3).
       (ii) Section 24(d)(1) is amended--

       (I) by striking ``section 26(a)(2) or subsection (b)(3), as 
     the case may be,'' each place it appears in subparagraphs (A) 
     and (B) and inserting ``section 26(a)'', and
       (II) by striking ``section 26(a)(2) or subsection (b)(3), 
     as the case may be'' in the second last sentence and 
     inserting ``section 26(a)''.

       (C) Credit for interest on certain home mortgages.--Section 
     25(e)(1)(C) is amended to read as follows:
       ``(C) Applicable tax limit.--For purposes of this 
     paragraph, the term `applicable tax limit' means the 
     limitation imposed by section 26(a) for the taxable year 
     reduced by the sum of the credits allowable under this 
     subpart (other than this section and sections 23, 25D, and 
     1400C).''.
       (D) Hope and lifetime learning credits.--Section 25A(i) is 
     amended--
       (i) by striking paragraph (5) and by redesignating 
     paragraphs (6) and (7) as paragraphs (5) and (6), 
     respectively, and
       (ii) by striking ``section 26(a)(2) or paragraph (5), as 
     the case may be'' in paragraph (5), as redesignated by clause 
     (i), and inserting ``section 26(a)''.
       (E) Savers' credit.--Section 25B is amended by striking 
     subsection (g).
       (F) Residential energy efficient property.--Section 25D(c) 
     is amended to read as follows:
       ``(c) Carryforward of Unused Credit.--If the credit 
     allowable under subsection (a) exceeds the limitation imposed 
     by section 26(a) for such taxable year reduced by the sum of 
     the credits allowable under this subpart (other than this 
     section), such excess shall be carried to the succeeding 
     taxable year and added to the credit allowable under 
     subsection (a) for such succeeding taxable year.''.
       (G) Certain plug-in electric vehicles.--Section 30(c)(2) is 
     amended to read as follows:
       ``(2) Personal credit.--For purposes of this title, the 
     credit allowed under subsection (a) for any taxable year 
     (determined after application of paragraph (1)) shall be 
     treated as a credit allowable under subpart A for such 
     taxable year.''.
       (H) Alternative motor vehicle credit.--Section 30B(g)(2) is 
     amended to read as follows:
       ``(2) Personal credit.--For purposes of this title, the 
     credit allowed under subsection (a) for any taxable year 
     (determined after application of paragraph (1)) shall be 
     treated as a credit allowable under subpart A for such 
     taxable year.''.
       (I) New qualified plug-in electric vehicle credit.--Section 
     30D(c)(2) is amended to read as follows:

[[Page 18590]]

       ``(2) Personal credit.--For purposes of this title, the 
     credit allowed under subsection (a) for any taxable year 
     (determined after application of paragraph (1)) shall be 
     treated as a credit allowable under subpart A for such 
     taxable year.''.
       (J) Cross references.--Section 55(c)(3) is amended by 
     striking ``26(a), 30C(d)(2),'' and inserting ``30C(d)(2)''.
       (K) Foreign tax credit.--Section 904 is amended by striking 
     subsection (i) and by redesignating subsections (j) , (k), 
     and (l) as subsections (i), (j), and (k), respectively.
       (L) First-time home buyer credit for the district of 
     columbia.--Section 1400C(d) is amended to read as follows:
       ``(d) Carryforward of Unused Credit.--If the credit 
     allowable under subsection (a) exceeds the limitation imposed 
     by section 26(a) for such taxable year reduced by the sum of 
     the credits allowable under subpart A of part IV of 
     subchapter A (other than this section and section 25D), such 
     excess shall be carried to the succeeding taxable year and 
     added to the credit allowable under subsection (a) for such 
     taxable year.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2011.

                   TITLE II--INDIVIDUAL TAX EXTENDERS

     SEC. 201. EXTENSION OF DEDUCTION FOR CERTAIN EXPENSES OF 
                   ELEMENTARY AND SECONDARY SCHOOL TEACHERS.

       (a) In General.--Subparagraph (D) of section 62(a)(2) is 
     amended by striking ``or 2011'' and inserting ``2011, 2012, 
     or 2013''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2011.

     SEC. 202. EXTENSION OF EXCLUSION FROM GROSS INCOME OF 
                   DISCHARGE OF QUALIFIED PRINCIPAL RESIDENCE 
                   INDEBTEDNESS.

       (a) In General.--Subparagraph (E) of section 108(a)(1) is 
     amended by striking ``January 1, 2013'' and inserting 
     ``January 1, 2014''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to indebtedness discharged after December 31, 
     2012.

     SEC. 203. EXTENSION OF PARITY FOR EXCLUSION FROM INCOME FOR 
                   EMPLOYER-PROVIDED MASS TRANSIT AND PARKING 
                   BENEFITS.

       (a) In General.--Paragraph (2) of section 132(f) is amended 
     by striking ``January 1, 2012'' and inserting ``January 1, 
     2014''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to months after December 31, 2011.

     SEC. 204. EXTENSION OF MORTGAGE INSURANCE PREMIUMS TREATED AS 
                   QUALIFIED RESIDENCE INTEREST.

       (a) In General.--Subclause (I) of section 163(h)(3)(E)(iv) 
     is amended by striking ``December 31, 2011'' and inserting 
     ``December 31, 2013''.
       (b) Technical Amendments.--Clause (i) of section 
     163(h)(4)(E) is amended--
       (1) by striking ``Veterans Administration'' and inserting 
     ``Department of Veterans Affairs'', and
       (2) by striking ``Rural Housing Administration'' and 
     inserting ``Rural Housing Service''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or accrued after December 31, 
     2011.

     SEC. 205. EXTENSION OF DEDUCTION OF STATE AND LOCAL GENERAL 
                   SALES TAXES.

       (a) In General.--Subparagraph (I) of section 164(b)(5) is 
     amended by striking ``January 1, 2012'' and inserting 
     ``January 1, 2014''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2011.

     SEC. 206. EXTENSION OF SPECIAL RULE FOR CONTRIBUTIONS OF 
                   CAPITAL GAIN REAL PROPERTY MADE FOR 
                   CONSERVATION PURPOSES.

       (a) In General.--Clause (vi) of section 170(b)(1)(E) is 
     amended by striking ``December 31, 2011'' and inserting 
     ``December 31, 2013''.
       (b) Contributions by Certain Corporate Farmers and 
     Ranchers.--Clause (iii) of section 170(b)(2)(B) is amended by 
     striking ``December 31, 2011'' and inserting ``December 31, 
     2013''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to contributions made in taxable years beginning 
     after December 31, 2011.

     SEC. 207. EXTENSION OF ABOVE-THE-LINE DEDUCTION FOR QUALIFIED 
                   TUITION AND RELATED EXPENSES.

       (a) In General.--Subsection (e) of section 222 is amended 
     by striking ``December 31, 2011'' and inserting ``December 
     31, 2013''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2011.

     SEC. 208. EXTENSION OF TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL 
                   RETIREMENT PLANS FOR CHARITABLE PURPOSES.

       (a) In General.--Subparagraph (F) of section 408(d)(8) is 
     amended by striking ``December 31, 2011'' and inserting 
     ``December 31, 2013''.
       (b) Effective Date; Special Rule.--
       (1) Effective date.--The amendment made by this section 
     shall apply to distributions made in taxable years beginning 
     after December 31, 2011.
       (2) Special rules.--For purposes of subsections (a)(6), 
     (b)(3), and (d)(8) of section 408 of the Internal Revenue 
     Code of 1986, at the election of the taxpayer (at such time 
     and in such manner as prescribed by the Secretary of the 
     Treasury)--
       (A) any qualified charitable distribution made after 
     December 31, 2012, and before February 1, 2013, shall be 
     deemed to have been made on December 31, 2012, and
       (B) any portion of a distribution from an individual 
     retirement account to the taxpayer after November 30, 2012, 
     and before January 1, 2013, may be treated as a qualified 
     charitable distribution to the extent that--
       (i) such portion is transferred in cash after the 
     distribution to an organization described in section 
     408(d)(8)(B)(i) before February 1, 2013, and
       (ii) such portion is part of a distribution that would meet 
     the requirements of section 408(d)(8) but for the fact that 
     the distribution was not transferred directly to an 
     organization described in section 408(d)(8)(B)(i).

     SEC. 209. IMPROVE AND MAKE PERMANENT THE PROVISION 
                   AUTHORIZING THE INTERNAL REVENUE SERVICE TO 
                   DISCLOSE CERTAIN RETURN AND RETURN INFORMATION 
                   TO CERTAIN PRISON OFFICIALS.

       (a) In General.--Paragraph (10) of section 6103(k) is 
     amended to read as follows:
       ``(10) Disclosure of certain returns and return information 
     to certain prison officials.--
       ``(A) In general.--Under such procedures as the Secretary 
     may prescribe, the Secretary may disclose to officers and 
     employees of the Federal Bureau of Prisons and of any State 
     agency charged with the responsibility for administration of 
     prisons any returns or return information with respect to 
     individuals incarcerated in Federal or State prison systems 
     whom the Secretary has determined may have filed or 
     facilitated the filing of a false or fraudulent return to the 
     extent that the Secretary determines that such disclosure is 
     necessary to permit effective Federal tax administration.
       ``(B) Disclosure to contractor-run prisons.--Under such 
     procedures as the Secretary may prescribe, the disclosures 
     authorized by subparagraph (A) may be made to contractors 
     responsible for the operation of a Federal or State prison on 
     behalf of such Bureau or agency.
       ``(C) Restrictions on use of disclosed information.--Any 
     return or return information received under this paragraph 
     shall be used only for the purposes of and to the extent 
     necessary in taking administrative action to prevent the 
     filing of false and fraudulent returns, including 
     administrative actions to address possible violations of 
     administrative rules and regulations of the prison facility 
     and in administrative and judicial proceedings arising from 
     such administrative actions.
       ``(D) Restrictions on redisclosure and disclosure to legal 
     representatives.--Notwithstanding subsection (h)--
       ``(i) Restrictions on redisclosure.--Except as provided in 
     clause (ii), any officer, employee, or contractor of the 
     Federal Bureau of Prisons or of any State agency charged with 
     the responsibility for administration of prisons shall not 
     disclose any information obtained under this paragraph to any 
     person other than an officer or employee or contractor of 
     such Bureau or agency personally and directly engaged in the 
     administration of prison facilities on behalf of such Bureau 
     or agency.
       ``(ii) Disclosure to legal representatives.--The returns 
     and return information disclosed under this paragraph may be 
     disclosed to the duly authorized legal representative of the 
     Federal Bureau of Prisons, State agency, or contractor 
     charged with the responsibility for administration of 
     prisons, or of the incarcerated individual accused of filing 
     the false or fraudulent return who is a party to an action or 
     proceeding described in subparagraph (C), solely in 
     preparation for, or for use in, such action or proceeding.''.
       (b) Conforming Amendments.--
       (1) Paragraph (3) of section 6103(a) is amended by 
     inserting ``subsection (k)(10),'' after ``subsection 
     (e)(1)(D)(iii),''.
       (2) Paragraph (4) of section 6103(p) is amended--
       (A) by inserting ``subsection (k)(10),'' before 
     ``subsection (l)(10),'' in the matter preceding subparagraph 
     (A),
       (B) in subparagraph (F)(i)--
       (i) by inserting ``(k)(10),'' before ``or (l)(6),'', and
       (ii) by inserting ``subsection (k)(10) or'' before 
     ``subsection (l)(10),'', and
       (C) by inserting ``subsection (k)(10) or'' before 
     ``subsection (l)(10),'' both places it appears in the matter 
     following subparagraph (F)(iii).
       (3) Paragraph (2) of section 7213(a) is amended by 
     inserting ``(k)(10),'' before ``(l)(6),''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

                   TITLE III--BUSINESS TAX EXTENDERS

     SEC. 301. EXTENSION AND MODIFICATION OF RESEARCH CREDIT.

       (a) Extension.--
       (1) In general.--Subparagraph (B) of section 41(h)(1) is 
     amended by striking ``December 31, 2011'' and inserting 
     ``December 31, 2013''.
       (2) Conforming amendment.--Subparagraph (D) of section 
     45C(b)(1) is amended by striking ``December 31, 2011'' and 
     inserting ``December 31, 2013''.
       (b) Inclusion of Qualified Research Expenses and Gross 
     Receipts of an Acquired Person.--
       (1) Partial inclusion of pre-acquisition qualified research 
     expenses and gross receipts.--Subparagraph (A) of section 
     41(f)(3) is amended to read as follows:
       ``(A) Acquisitions.--
       ``(i) In general.--If a person acquires the major portion 
     of either a trade or business or a

[[Page 18591]]

     separate unit of a trade or business (hereinafter in this 
     paragraph referred to as the `acquired business') of another 
     person (hereinafter in this paragraph referred to as the 
     `predecessor'), then the amount of qualified research 
     expenses paid or incurred by the acquiring person during the 
     measurement period shall be increased by the amount 
     determined under clause (ii), and the gross receipts of the 
     acquiring person for such period shall be increased by the 
     amount determined under clause (iii).
       ``(ii) Amount determined with respect to qualified research 
     expenses.--The amount determined under this clause is--

       ``(I) for purposes of applying this section for the taxable 
     year in which such acquisition is made, the acquisition year 
     amount, and
       ``(II) for purposes of applying this section for any 
     taxable year after the taxable year in which such acquisition 
     is made, the qualified research expenses paid or incurred by 
     the predecessor with respect to the acquired business during 
     the measurement period.

       ``(iii) Amount determined with respect to gross receipts.--
     The amount determined under this clause is the amount which 
     would be determined under clause (ii) if `the gross receipts 
     of' were substituted for `the qualified research expenses 
     paid or incurred by' each place it appears in clauses (ii) 
     and (iv).
       ``(iv) Acquisition year amount.--For purposes of clause 
     (ii), the acquisition year amount is the amount equal to the 
     product of--

       ``(I) the qualified research expenses paid or incurred by 
     the predecessor with respect to the acquired business during 
     the measurement period, and
       ``(II) the number of days in the period beginning on the 
     date of the acquisition and ending on the last day of the 
     taxable year in which the acquisition is made,

     divided by the number of days in the acquiring person's 
     taxable year.
       ``(v) Special rules for coordinating taxable years.--In the 
     case of an acquiring person and a predecessor whose taxable 
     years do not begin on the same date--

       ``(I) each reference to a taxable year in clauses (ii) and 
     (iv) shall refer to the appropriate taxable year of the 
     acquiring person,
       ``(II) the qualified research expenses paid or incurred by 
     the predecessor, and the gross receipts of the predecessor, 
     during each taxable year of the predecessor any portion of 
     which is part of the measurement period shall be allocated 
     equally among the days of such taxable year,
       ``(III) the amount of such qualified research expenses 
     taken into account under clauses (ii) and (iv) with respect 
     to a taxable year of the acquiring person shall be equal to 
     the total of the expenses attributable under subclause (II) 
     to the days occurring during such taxable year, and
       ``(IV) the amount of such gross receipts taken into account 
     under clause (iii) with respect to a taxable year of the 
     acquiring person shall be equal to the total of the gross 
     receipts attributable under subclause (II) to the days 
     occurring during such taxable year.

       ``(vi) Measurement period.--For purposes of this 
     subparagraph, the term `measurement period' means, with 
     respect to the taxable year of the acquiring person for which 
     the credit is determined, any period of the acquiring person 
     preceding such taxable year which is taken into account for 
     purposes of determining the credit for such year.''.
       (2) Expenses and gross receipts of a predecessor.--
     Subparagraph (B) of section 41(f)(3) is amended to read as 
     follows:
       ``(B) Dispositions.--If the predecessor furnished to the 
     acquiring person such information as is necessary for the 
     application of subparagraph (A), then, for purposes of 
     applying this section for any taxable year ending after such 
     disposition, the amount of qualified research expenses paid 
     or incurred by, and the gross receipts of, the predecessor 
     during the measurement period (as defined in subparagraph 
     (A)(vi), determined by substituting `predecessor' for 
     `acquiring person' each place it appears) shall be reduced 
     by--
       ``(i) in the case of the taxable year in which such 
     disposition is made, an amount equal to the product of--

       ``(I) the qualified research expenses paid or incurred by, 
     or gross receipts of, the predecessor with respect to the 
     acquired business during the measurement period (as so 
     defined and so determined), and
       ``(II) the number of days in the period beginning on the 
     date of acquisition (as determined for purposes of 
     subparagraph (A)(iv)(II)) and ending on the last day of the 
     taxable year of the predecessor in which the disposition is 
     made,

     divided by the number of days in the taxable year of the 
     predecessor, and
       ``(ii) in the case of any taxable year ending after the 
     taxable year in which such disposition is made, the amount 
     described in clause (i)(I).''.
       (c) Aggregation of Expenditures.--Paragraph (1) of section 
     41(f) is amended--
       (1) by striking ``shall be its proportionate shares of the 
     qualified research expenses, basic research payments, and 
     amounts paid or incurred to energy research consortiums, 
     giving rise to the credit'' in subparagraph (A)(ii) and 
     inserting ``shall be determined on a proportionate basis to 
     its share of the aggregate of the qualified research 
     expenses, basic research payments, and amounts paid or 
     incurred to energy research consortiums, taken into account 
     by such controlled group for purposes of this section'', and
       (2) by striking ``shall be its proportionate shares of the 
     qualified research expenses, basic research payments, and 
     amounts paid or incurred to energy research consortiums, 
     giving rise to the credit'' in subparagraph (B)(ii) and 
     inserting ``shall be determined on a proportionate basis to 
     its share of the aggregate of the qualified research 
     expenses, basic research payments, and amounts paid or 
     incurred to energy research consortiums, taken into account 
     by all such persons under common control for purposes of this 
     section''.
       (d) Effective Date.--
       (1) Extension.--The amendments made by subsection (a) shall 
     apply to amounts paid or incurred after December 31, 2011.
       (2) Modifications.--The amendments made by subsections (b) 
     and (c) shall apply to taxable years beginning after December 
     31, 2011.

     SEC. 302. EXTENSION OF TEMPORARY MINIMUM LOW-INCOME TAX 
                   CREDIT RATE FOR NON-FEDERALLY SUBSIDIZED NEW 
                   BUILDINGS.

       (a) In General.--Subparagraph (A) of section 42(b)(2) is 
     amended by striking ``and before December 31, 2013'' and 
     inserting ``with respect to housing credit dollar amount 
     allocations made before January 1, 2014''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 303. EXTENSION OF HOUSING ALLOWANCE EXCLUSION FOR 
                   DETERMINING AREA MEDIAN GROSS INCOME FOR 
                   QUALIFIED RESIDENTIAL RENTAL PROJECT EXEMPT 
                   FACILITY BONDS.

       (a) In General.--Subsection (b) of section 3005 of the 
     Housing Assistance Tax Act of 2008 is amended by striking 
     ``January 1, 2012'' each place it appears and inserting 
     ``January 1, 2014''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in the enactment of section 
     3005 of the Housing Assistance Tax Act of 2008.

     SEC. 304. EXTENSION OF INDIAN EMPLOYMENT TAX CREDIT.

       (a) In General.--Subsection (f) of section 45A is amended 
     by striking ``December 31, 2011'' and inserting ``December 
     31, 2013''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2011.

     SEC. 305. EXTENSION OF NEW MARKETS TAX CREDIT.

       (a) In General.--Subparagraph (G) of section 45D(f)(1) is 
     amended by striking ``2010 and 2011'' and inserting ``2010, 
     2011, 2012, and 2013''.
       (b) Carryover of Unused Limitation.--Paragraph (3) of 
     section 45D(f) is amended by striking ``2016'' and inserting 
     ``2018''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to calendar years beginning after December 31, 
     2011.

     SEC. 306. EXTENSION OF RAILROAD TRACK MAINTENANCE CREDIT.

       (a) In General.--Subsection (f) of section 45G is amended 
     by striking ``January 1, 2012'' and inserting ``January 1, 
     2014''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to expenditures paid or incurred in taxable years 
     beginning after December 31, 2011.

     SEC. 307. EXTENSION OF MINE RESCUE TEAM TRAINING CREDIT.

       (a) In General.--Subsection (e) of section 45N is amended 
     by striking ``December 31, 2011'' and inserting ``December 
     31, 2013''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2011.

     SEC. 308. EXTENSION OF EMPLOYER WAGE CREDIT FOR EMPLOYEES WHO 
                   ARE ACTIVE DUTY MEMBERS OF THE UNIFORMED 
                   SERVICES.

       (a) In General.--Subsection (f) of section 45P is amended 
     by striking ``December 31, 2011'' and inserting ``December 
     31, 2013''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to payments made after December 31, 2011.

     SEC. 309. EXTENSION OF WORK OPPORTUNITY TAX CREDIT.

       (a) In General.--Subparagraph (B) of section 51(c)(4) is 
     amended by striking ``after'' and all that follows and 
     inserting ``after December 31, 2013''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to individuals who begin work for the employer 
     after December 31, 2011.

     SEC. 310. EXTENSION OF QUALIFIED ZONE ACADEMY BONDS.

       (a) In General.--Paragraph (1) of section 54E(c) is amended 
     by inserting ``, 2012, and 2013'' after ``for 2011''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after December 31, 2011.

     SEC. 311. EXTENSION OF 15-YEAR STRAIGHT-LINE COST RECOVERY 
                   FOR QUALIFIED LEASEHOLD IMPROVEMENTS, QUALIFIED 
                   RESTAURANT BUILDINGS AND IMPROVEMENTS, AND 
                   QUALIFIED RETAIL IMPROVEMENTS.

       (a) In General.--Clauses (iv), (v), and (ix) of section 
     168(e)(3)(E) are each amended by striking ``January 1, 2012'' 
     and inserting ``January 1, 2014''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2011.

     SEC. 312. EXTENSION OF 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS 
                   ENTERTAINMENT COMPLEXES.

       (a) In General.--Subparagraph (D) of section 168(i)(15) is 
     amended by striking ``December 31, 2011'' and inserting 
     ``December 31, 2013''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2011.

[[Page 18592]]



     SEC. 313. EXTENSION OF ACCELERATED DEPRECIATION FOR BUSINESS 
                   PROPERTY ON AN INDIAN RESERVATION.

       (a) In General.--Paragraph (8) of section 168(j) is amended 
     by striking ``December 31, 2011'' and inserting ``December 
     31, 2013''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2011.

     SEC. 314. EXTENSION OF ENHANCED CHARITABLE DEDUCTION FOR 
                   CONTRIBUTIONS OF FOOD INVENTORY.

       (a) In General.--Clause (iv) of section 170(e)(3)(C) is 
     amended by striking ``December 31, 2011'' and inserting 
     ``December 31, 2013''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions made after December 31, 2011.

     SEC. 315. EXTENSION OF INCREASED EXPENSING LIMITATIONS AND 
                   TREATMENT OF CERTAIN REAL PROPERTY AS SECTION 
                   179 PROPERTY.

       (a) In General.--
       (1) Dollar limitation.--Section 179(b)(1) is amended--
       (A) by striking ``2010 or 2011,'' in subparagraph (B) and 
     inserting ``2010, 2011, 2012, or 2013, and'',
       (B) by striking subparagraph (C),
       (C) by redesignating subparagraph (D) as subparagraph (C), 
     and
       (D) in subparagraph (C), as so redesignated, by striking 
     ``2012'' and inserting ``2013''.
       (2) Reduction in limitation.--Section 179(b)(2) is 
     amended--
       (A) by striking ``2010 or 2011,'' in subparagraph (B) and 
     inserting ``2010, 2011, 2012, or 2013, and'',
       (B) by striking subparagraph (C),
       (C) by redesignating subparagraph (D) as subparagraph (C), 
     and
       (D) in subparagraph (C), as so redesignated, by striking 
     ``2012'' and inserting ``2013''.
       (3) Conforming amendment.--Subsection (b) of section 179 is 
     amended by striking paragraph (6).
       (b) Computer Software.--Section 179(d)(1)(A)(ii) is amended 
     by striking ``2013'' and inserting ``2014''.
       (c) Election.--Section 179(c)(2) is amended by striking 
     ``2013'' and inserting ``2014''.
       (d) Special Rules for Treatment of Qualified Real 
     Property.--
       (1) In general.--Section 179(f)(1) is amended by striking 
     ``2010 or 2011'' and inserting ``2010, 2011, 2012, or 2013''.
       (2) Carryover limitation.--
       (A) In general.--Section 179(f)(4) is amended by striking 
     ``2011'' each place it appears and inserting ``2013''.
       (B) Conforming amendment.--Subparagraph (C) of section 
     179(f)(4) is amended--
       (i) in the heading, by striking ``2010'' and inserting 
     ``2010, 2011 and 2012'', and
       (ii) by adding at the end the following: ``For the last 
     taxable year beginning in 2013, the amount determined under 
     subsection (b)(3)(A) for such taxable year shall be 
     determined without regard to this paragraph.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2011.

     SEC. 316. EXTENSION OF ELECTION TO EXPENSE MINE SAFETY 
                   EQUIPMENT.

       (a) In General.--Subsection (g) of section 179E is amended 
     by striking ``December 31, 2011'' and inserting ``December 
     31, 2013''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2011.

     SEC. 317. EXTENSION OF SPECIAL EXPENSING RULES FOR CERTAIN 
                   FILM AND TELEVISION PRODUCTIONS.

       (a) In General.--Subsection (f) of section 181 is amended 
     by striking ``December 31, 2011'' and inserting ``December 
     31, 2013''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to productions commencing after December 31, 
     2011.

     SEC. 318. EXTENSION OF DEDUCTION ALLOWABLE WITH RESPECT TO 
                   INCOME ATTRIBUTABLE TO DOMESTIC PRODUCTION 
                   ACTIVITIES IN PUERTO RICO.

       (a) In General.--Subparagraph (C) of section 199(d)(8) is 
     amended--
       (1) by striking ``first 6 taxable years'' and inserting 
     ``first 8 taxable years'', and
       (2) by striking ``January 1, 2012'' and inserting ``January 
     1, 2014''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2011.

     SEC. 319. EXTENSION OF MODIFICATION OF TAX TREATMENT OF 
                   CERTAIN PAYMENTS TO CONTROLLING EXEMPT 
                   ORGANIZATIONS.

       (a) In General.--Clause (iv) of section 512(b)(13)(E) is 
     amended by striking ``December 31, 2011'' and inserting 
     ``December 31, 2013''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to payments received or accrued after December 
     31, 2011.

     SEC. 320. EXTENSION OF TREATMENT OF CERTAIN DIVIDENDS OF 
                   REGULATED INVESTMENT COMPANIES.

       (a) In General.--Paragraphs (1)(C)(v) and (2)(C)(v) of 
     section 871(k) are each amended by striking ``December 31, 
     2011'' and inserting ``December 31, 2013''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2011.

     SEC. 321. EXTENSION OF RIC QUALIFIED INVESTMENT ENTITY 
                   TREATMENT UNDER FIRPTA.

       (a) In General.--Clause (ii) of section 897(h)(4)(A) is 
     amended by striking ``December 31, 2011'' and inserting 
     ``December 31, 2013''.
       (b) Effective Date.--
       (1) In general.--The amendment made by subsection (a) shall 
     take effect on January 1, 2012. Notwithstanding the preceding 
     sentence, such amendment shall not apply with respect to the 
     withholding requirement under section 1445 of the Internal 
     Revenue Code of 1986 for any payment made before the date of 
     the enactment of this Act.
       (2) Amounts withheld on or before date of enactment.--In 
     the case of a regulated investment company--
       (A) which makes a distribution after December 31, 2011, and 
     before the date of the enactment of this Act; and
       (B) which would (but for the second sentence of paragraph 
     (1)) have been required to withhold with respect to such 
     distribution under section 1445 of such Code,
     such investment company shall not be liable to any person to 
     whom such distribution was made for any amount so withheld 
     and paid over to the Secretary of the Treasury.

     SEC. 322. EXTENSION OF SUBPART F EXCEPTION FOR ACTIVE 
                   FINANCING INCOME.

       (a) Exempt Insurance Income.--Paragraph (10) of section 
     953(e) is amended--
       (1) by striking ``January 1, 2012'' and inserting ``January 
     1, 2014'', and
       (2) by striking ``December 31, 2011'' and inserting 
     ``December 31, 2013''.
       (b) Special Rule for Income Derived in the Active Conduct 
     of Banking, Financing, or Similar Businesses.--Paragraph (9) 
     of section 954(h) is amended by striking ``January 1, 2012'' 
     and inserting ``January 1, 2014''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years of foreign corporations 
     beginning after December 31, 2011, and to taxable years of 
     United States shareholders with or within which any such 
     taxable year of such foreign corporation ends.

     SEC. 323. EXTENSION OF LOOK-THRU TREATMENT OF PAYMENTS 
                   BETWEEN RELATED CONTROLLED FOREIGN CORPORATIONS 
                   UNDER FOREIGN PERSONAL HOLDING COMPANY RULES.

       (a) In General.--Subparagraph (C) of section 954(c)(6) is 
     amended by striking ``January 1, 2012'' and inserting 
     ``January 1, 2014''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years of foreign corporations 
     beginning after December 31, 2011, and to taxable years of 
     United States shareholders with or within which such taxable 
     years of foreign corporations end.

     SEC. 324. EXTENSION OF TEMPORARY EXCLUSION OF 100 PERCENT OF 
                   GAIN ON CERTAIN SMALL BUSINESS STOCK.

       (a) In General.--Paragraph (4) of section 1202(a) is 
     amended--
       (1) by striking ``January 1, 2012'' and inserting ``January 
     1, 2014'', and
       (2) by striking ``and 2011'' and inserting ``, 2011, 2012, 
     and 2013'' in the heading thereof.
       (b) Technical Amendments.--
       (1) Special rule for 2009 and certain period in 2010.--
     Paragraph (3) of section 1202(a) is amended by adding at the 
     end the following new flush sentence:
     ``In the case of any stock which would be described in the 
     preceding sentence (but for this sentence), the acquisition 
     date for purposes of this subsection shall be the first day 
     on which such stock was held by the taxpayer determined after 
     the application of section 1223.''.
       (2) 100 percent exclusion.--Paragraph (4) of section 
     1202(a) is amended by adding at the end the following new 
     flush sentence:
     ``In the case of any stock which would be described in the 
     preceding sentence (but for this sentence), the acquisition 
     date for purposes of this subsection shall be the first day 
     on which such stock was held by the taxpayer determined after 
     the application of section 1223.''.
       (c) Effective Dates.--
       (1) In general.--The amendments made by subsection (a) 
     shall apply to stock acquired after December 31, 2011.
       (2) Subsection (b)(1).--The amendment made by subsection 
     (b)(1) shall take effect as if included in section 1241(a) of 
     division B of the American Recovery and Reinvestment Act of 
     2009.
       (3) Subsection (b)(2).--The amendment made by subsection 
     (b)(2) shall take effect as if included in section 2011(a) of 
     the Creating Small Business Jobs Act of 2010.

     SEC. 325. EXTENSION OF BASIS ADJUSTMENT TO STOCK OF S 
                   CORPORATIONS MAKING CHARITABLE CONTRIBUTIONS OF 
                   PROPERTY.

       (a) In General.--Paragraph (2) of section 1367(a) is 
     amended by striking ``December 31, 2011'' and inserting 
     ``December 31, 2013''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions made in taxable years beginning 
     after December 31, 2011.

     SEC. 326. EXTENSION OF REDUCTION IN S-CORPORATION RECOGNITION 
                   PERIOD FOR BUILT-IN GAINS TAX.

       (a) In General.--Paragraph (7) of section 1374(d) is 
     amended--
       (1) by redesignating subparagraph (C) as subparagraph (D), 
     and
       (2) by inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) Special rule for 2012 and 2013.--For purposes of 
     determining the net recognized built-in gain for taxable 
     years beginning in 2012 or 2013, subparagraphs (A) and (D) 
     shall be applied by substituting `5-year' for `10-year'.'', 
     and
       (3) by adding at the end the following new subparagraph:
       ``(E) Installment sales.--If an S corporation sells an 
     asset and reports the income from the

[[Page 18593]]

     sale using the installment method under section 453, the 
     treatment of all payments received shall be governed by the 
     provisions of this paragraph applicable to the taxable year 
     in which such sale was made.''.
       (b) Technical Amendment.--Subparagraph (B) of section 
     1374(d)(2) is amended by inserting ``described in 
     subparagraph (A)'' after ``, for any taxable year''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2011.

     SEC. 327. EXTENSION OF EMPOWERMENT ZONE TAX INCENTIVES.

       (a) In General.--Clause (i) of section 1391(d)(1)(A) is 
     amended by striking ``December 31, 2011'' and inserting 
     ``December 31, 2013''.
       (b) Increased Exclusion of Gain on Stock of Empowerment 
     Zone Businesses.--Subparagraph (C) of section 1202(a)(2) is 
     amended--
       (1) by striking ``December 31, 2016'' and inserting 
     ``December 31, 2018''; and
       (2) by striking ``2016'' in the heading and inserting 
     ``2018''.
       (c) Treatment of Certain Termination Dates Specified in 
     Nominations.--In the case of a designation of an empowerment 
     zone the nomination for which included a termination date 
     which is contemporaneous with the date specified in 
     subparagraph (A)(i) of section 1391(d)(1) of the Internal 
     Revenue Code of 1986 (as in effect before the enactment of 
     this Act), subparagraph (B) of such section shall not apply 
     with respect to such designation if, after the date of the 
     enactment of this section, the entity which made such 
     nomination amends the nomination to provide for a new 
     termination date in such manner as the Secretary of the 
     Treasury (or the Secretary's designee) may provide.
       (d) Effective Date.--The amendments made by this section 
     shall apply to periods after December 31, 2011.

     SEC. 328. EXTENSION OF TAX-EXEMPT FINANCING FOR NEW YORK 
                   LIBERTY ZONE.

       (a) In General.--Subparagraph (D) of section 1400L(d)(2) is 
     amended by striking ``January 1, 2012'' and inserting 
     ``January 1, 2014''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to bonds issued after December 31, 2011.

     SEC. 329. EXTENSION OF TEMPORARY INCREASE IN LIMIT ON COVER 
                   OVER OF RUM EXCISE TAXES TO PUERTO RICO AND THE 
                   VIRGIN ISLANDS.

       (a) In General.--Paragraph (1) of section 7652(f) is 
     amended by striking ``January 1, 2012'' and inserting 
     ``January 1, 2014''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to distilled spirits brought into the United 
     States after December 31, 2011.

     SEC. 330. MODIFICATION AND EXTENSION OF AMERICAN SAMOA 
                   ECONOMIC DEVELOPMENT CREDIT.

       (a) Modification.--
       (1) In general.--Subsection (a) of section 119 of division 
     A of the Tax Relief and Health Care Act of 2006 is amended by 
     striking ``if such corporation'' and all that follows and 
     inserting ``if--
       ``(1) in the case of a taxable year beginning before 
     January 1, 2012, such corporation--
       ``(A) is an existing credit claimant with respect to 
     American Samoa, and
       ``(B) elected the application of section 936 of the 
     Internal Revenue Code of 1986 for its last taxable year 
     beginning before January 1, 2006, and
       ``(2) in the case of a taxable year beginning after 
     December 31, 2011, such corporation meets the requirements of 
     subsection (e).''.
       (2) Requirements.--Section 119 of division A of such Act is 
     amended by adding at the end the following new subsection:
       ``(e) Qualified Production Activities Income Requirement.--
     A corporation meets the requirement of this subsection if 
     such corporation has qualified production activities income, 
     as defined in subsection (c) of section 199 of the Internal 
     Revenue Code of 1986, determined by substituting `American 
     Samoa' for `the United States' each place it appears in 
     paragraphs (3), (4), and (6) of such subsection (c), for the 
     taxable year.''.
       (b) Extension.--Subsection (d) of section 119 of division A 
     of the Tax Relief and Health Care Act of 2006 is amended by 
     striking ``shall apply'' and all that follows and inserting 
     ``shall apply--
       ``(1) in the case of a corporation that meets the 
     requirements of subparagraphs (A) and (B) of subsection 
     (a)(1), to the first 8 taxable years of such corporation 
     which begin after December 31, 2006, and before January 1, 
     2014, and
       ``(2) in the case of a corporation that does not meet the 
     requirements of subparagraphs (A) and (B) of subsection 
     (a)(1), to the first 2 taxable years of such corporation 
     which begin after December 31, 2011, and before January 1, 
     2014.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2011.

     SEC. 331. EXTENSION AND MODIFICATION OF BONUS DEPRECIATION.

       (a) In General.--Paragraph (2) of section 168(k) is 
     amended--
       (1) by striking ``January 1, 2014'' in subparagraph (A)(iv) 
     and inserting ``January 1, 2015'', and
       (2) by striking ``January 1, 2013'' each place it appears 
     and inserting ``January 1, 2014''.
       (b) Special Rule for Federal Long-term Contracts.--Clause 
     (ii) of section 460(c)(6)(B) is amended by inserting ``, or 
     after December 31, 2012, and before January 1, 2014 (January 
     1, 2015, in the case of property described in section 
     168(k)(2)(B))'' before the period.
       (c) Extension of Election To Accelerate the AMT Credit in 
     Lieu of Bonus Depreciation.--
       (1) In general.--Subclause (II) of section 
     168(k)(4)(D)(iii) is amended by striking ``2013'' and 
     inserting ``2014''.
       (2) Round 3 extension property.--Paragraph (4) of section 
     168(k) is amended by adding at the end the following new 
     subparagraph:
       ``(J) Special rules for round 3 extension property.--
       ``(i) In general.--In the case of round 3 extension 
     property, this paragraph shall be applied without regard to--

       ``(I) the limitation described in subparagraph (B)(i) 
     thereof, and
       ``(II) the business credit increase amount under 
     subparagraph (E)(iii) thereof.

       ``(ii) Taxpayers previously electing acceleration.--In the 
     case of a taxpayer who made the election under subparagraph 
     (A) for its first taxable year ending after March 31, 2008, a 
     taxpayer who made the election under subparagraph (H)(ii) for 
     its first taxable year ending after December 31, 2008, or a 
     taxpayer who made the election under subparagraph (I)(iii) 
     for its first taxable year ending after December 31, 2010--

       ``(I) the taxpayer may elect not to have this paragraph 
     apply to round 3 extension property, but
       ``(II) if the taxpayer does not make the election under 
     subclause (I), in applying this paragraph to the taxpayer the 
     bonus depreciation amount, maximum amount, and maximum 
     increase amount shall be computed and applied to eligible 
     qualified property which is round 3 extension property.

     The amounts described in subclause (II) shall be computed 
     separately from any amounts computed with respect to eligible 
     qualified property which is not round 3 extension property.
       ``(iii) Taxpayers not previously electing acceleration.--In 
     the case of a taxpayer who neither made the election under 
     subparagraph (A) for its first taxable year ending after 
     March 31, 2008, nor made the election under subparagraph 
     (H)(ii) for its first taxable year ending after December 31, 
     2008, nor made the election under subparagraph (I)(iii) for 
     any taxable year ending after December 31, 2010--

       ``(I) the taxpayer may elect to have this paragraph apply 
     to its first taxable year ending after December 31, 2012, and 
     each subsequent taxable year, and
       ``(II) if the taxpayer makes the election under subclause 
     (I), this paragraph shall only apply to eligible qualified 
     property which is round 3 extension property.

       ``(iv) Round 3 extension property.--For purposes of this 
     subparagraph, the term `round 3 extension property' means 
     property which is eligible qualified property solely by 
     reason of the extension of the application of the special 
     allowance under paragraph (1) pursuant to the amendments made 
     by section 331(a) of the American Taxpayer Relief Act of 2012 
     (and the application of such extension to this paragraph 
     pursuant to the amendment made by section 331(c)(1) of such 
     Act).''.
       (d) Normalization Rules Amendment.--Clause (ii) of section 
     168(i)(9)(A) is amended by inserting ``(respecting all 
     elections made by the taxpayer under this section)'' after 
     ``such property''.
       (e) Conforming Amendments.--
       (1) The heading for subsection (k) of section 168 is 
     amended by striking ``January 1, 2013'' and inserting 
     ``January 1, 2014''.
       (2) The heading for clause (ii) of section 168(k)(2)(B) is 
     amended by striking ``pre-january 1, 2013'' and inserting 
     ``pre-january 1, 2014''.
       (3) Subparagraph (C) of section 168(n)(2) is amended by 
     striking ``January 1, 2013'' and inserting ``January 1, 
     2014''.
       (4) Subparagraph (D) of section 1400L(b)(2) is amended by 
     striking ``January 1, 2013'' and inserting ``January 1, 
     2014''.
       (5) Subparagraph (B) of section 1400N(d)(3) is amended by 
     striking ``January 1, 2013'' and inserting ``January 1, 
     2014''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2012, in taxable years ending after such date.

                     TITLE IV--ENERGY TAX EXTENDERS

     SEC. 401. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT EXISTING 
                   HOMES.

       (a) In General.--Paragraph (2) of section 25C(g) is amended 
     by striking ``December 31, 2011'' and inserting ``December 
     31, 2013''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2011.

     SEC. 402. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL VEHICLE 
                   REFUELING PROPERTY.

       (a) In General.--Paragraph (2) of section 30C(g) is amended 
     by striking ``December 31, 2011.'' and inserting ``December 
     31, 2013''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2011.

     SEC. 403. EXTENSION OF CREDIT FOR 2- OR 3-WHEELED PLUG-IN 
                   ELECTRIC VEHICLES.

       (a) In General.--Section 30D is amended by adding at the 
     end the following new subsection:
       ``(g) Credit Allowed for 2- and 3-wheeled Plug-in Electric 
     Vehicles.--
       ``(1) In general.--In the case of a qualified 2- or 3-
     wheeled plug-in electric vehicle--
       ``(A) there shall be allowed as a credit against the tax 
     imposed by this chapter for the taxable year an amount equal 
     to the sum of the applicable amount with respect to each such 
     qualified

[[Page 18594]]

     2- or 3-wheeled plug-in electric vehicle placed in service by 
     the taxpayer during the taxable year, and
       ``(B) the amount of the credit allowed under subparagraph 
     (A) shall be treated as a credit allowed under subsection 
     (a).
       ``(2) Applicable amount.--For purposes of paragraph (1), 
     the applicable amount is an amount equal to the lesser of--
       ``(A) 10 percent of the cost of the qualified 2- or 3-
     wheeled plug-in electric vehicle, or
       ``(B) $2,500.
       ``(3) Qualified 2- or 3-wheeled plug-in electric vehicle.--
     The term `qualified 2- or 3-wheeled plug-in electric vehicle' 
     means any vehicle which--
       ``(A) has 2 or 3 wheels,
       ``(B) meets the requirements of subparagraphs (A), (B), 
     (C), (E), and (F) of subsection (d)(1) (determined by 
     substituting `2.5 kilowatt hours' for `4 kilowatt hours' in 
     subparagraph (F)(i)),
       ``(C) is manufactured primarily for use on public streets, 
     roads, and highways,
       ``(D) is capable of achieving a speed of 45 miles per hour 
     or greater, and
       ``(E) is acquired after December 31, 2011, and before 
     January 1, 2014.''.
       (b) Conforming Amendments.--
       (1) No double benefit.--Paragraph (2) of section 30D(f) is 
     amended--
       (A) by striking ``new qualified plug-in electric drive 
     motor vehicle'' and inserting ``vehicle for which a credit is 
     allowable under subsection (a)'', and
       (B) by striking ``allowed under subsection (a)'' and 
     inserting ``allowed under such subsection''.
       (2) Air quality and safety standards.--Section 30D(f)(7) is 
     amended by striking ``motor vehicle'' and inserting 
     ``vehicle''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to vehicles acquired after December 31, 2011.

     SEC. 404. EXTENSION AND MODIFICATION OF CELLULOSIC BIOFUEL 
                   PRODUCER CREDIT.

       (a) Extension.--
       (1) In general.--Subparagraph (H) of section 40(b)(6) is 
     amended to read as follows:
       ``(H) Application of paragraph.--
       ``(i) In general.--This paragraph shall apply with respect 
     to qualified cellulosic biofuel production after December 31, 
     2008, and before January 1, 2014.
       ``(ii) No carryover to certain years after expiration.--If 
     this paragraph ceases to apply for any period by reason of 
     clause (i), rules similar to the rules of subsection (e)(2) 
     shall apply.''.
       (2) Conforming amendment.--Paragraph (2) of section 40(e) 
     is amended by striking ``or subsection (b)(6)(H)''.
       (3) Effective date.--The amendments made by this subsection 
     shall take effect as if included in section 15321(b) of the 
     Heartland, Habitat, and Horticulture Act of 2008.
       (b) Algae Treated as a Qualified Feedstock.--
       (1) In general.--Subclause (I) of section 40(b)(6)(E)(i) is 
     amended to read as follows:

       ``(I) is derived by, or from, qualified feedstocks, and''.

       (2) Qualified feedstock; special rules for algae.--
     Paragraph (6) of section 40(b) is amended by redesignating 
     subparagraphs (F), (G), and (H), as amended by this Act, as 
     subparagraphs (H), (I), and (J), respectively, and by 
     inserting after subparagraph (E) the following new 
     subparagraphs:
       ``(F) Qualified feedstock.--For purposes of this paragraph, 
     the term `qualified feedstock' means--
       ``(i) any lignocellulosic or hemicellulosic matter that is 
     available on a renewable or recurring basis, and
       ``(ii) any cultivated algae, cyanobacteria, or lemna.
       ``(G) Special rules for algae.--In the case of fuel which 
     is derived by, or from, feedstock described in subparagraph 
     (F)(ii) and which is sold by the taxpayer to another person 
     for refining by such other person into a fuel which meets the 
     requirements of subparagraph (E)(i)(II) and the refined fuel 
     is not excluded under subparagraph (E)(iii)--
       ``(i) such sale shall be treated as described in 
     subparagraph (C)(i),
       ``(ii) such fuel shall be treated as meeting the 
     requirements of subparagraph (E)(i)(II) and as not being 
     excluded under subparagraph (E)(iii) in the hands of such 
     taxpayer, and
       ``(iii) except as provided in this subparagraph, such fuel 
     (and any fuel derived from such fuel) shall not be taken into 
     account under subparagraph (C) with respect to the taxpayer 
     or any other person.''.
       (3) Conforming amendments.--
       (A) Section 40, as amended by paragraph (2), is amended--
       (i) by striking ``cellulosic biofuel'' each place it 
     appears in the text thereof and inserting ``second generation 
     biofuel'',
       (ii) by striking ``Cellulosic'' in the headings of 
     subsections (b)(6), (b)(6)(E), and (d)(3)(D) and inserting 
     ``Second generation'', and
       (iii) by striking ``cellulosic'' in the headings of 
     subsections (b)(6)(C), (b)(6)(D), (b)(6)(H), (d)(6), and 
     (e)(3) and inserting ``second generation''.
       (B) Clause (ii) of section 40(b)(6)(E) is amended by 
     striking ``Such term shall not'' and inserting ``The term 
     `second generation biofuel' shall not''.
       (C) Paragraph (1) of section 4101(a) is amended by striking 
     ``cellulosic biofuel'' and inserting ``second generation 
     biofuel''.
       (4) Effective date.--The amendments made by this subsection 
     shall apply to fuels sold or used after the date of the 
     enactment of this Act.

     SEC. 405. EXTENSION OF INCENTIVES FOR BIODIESEL AND RENEWABLE 
                   DIESEL.

       (a) Credits for Biodiesel and Renewable Diesel Used as 
     Fuel.--Subsection (g) of section 40A is amended by striking 
     ``December 31, 2011'' and inserting ``December 31, 2013''.
       (b) Excise Tax Credits and Outlay Payments for Biodiesel 
     and Renewable Diesel Fuel Mixtures.--
       (1) Paragraph (6) of section 6426(c) is amended by striking 
     ``December 31, 2011'' and inserting ``December 31, 2013''.
       (2) Subparagraph (B) of section 6427(e)(6) is amended by 
     striking ``December 31, 2011'' and inserting ``December 31, 
     2013''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to fuel sold or used after December 31, 2011.

     SEC. 406. EXTENSION OF PRODUCTION CREDIT FOR INDIAN COAL 
                   FACILITIES PLACED IN SERVICE BEFORE 2009.

       (a) In General.--Subparagraph (A) of section 45(e)(10) is 
     amended by striking ``7-year period'' each place it appears 
     and inserting ``8-year period''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to coal produced after December 31, 2012.

     SEC. 407. EXTENSION AND MODIFICATION OF CREDITS WITH RESPECT 
                   TO FACILITIES PRODUCING ENERGY FROM CERTAIN 
                   RENEWABLE RESOURCES.

       (a) Production Tax Credit.--
       (1) Extension for wind facilities.--Paragraph (1) of 
     section 45(d) is amended by striking ``January 1, 2013'' and 
     inserting ``January 1, 2014''.
       (2) Exclusion of paper which is commonly recycled from 
     definition of municipal solid waste.--Section 45(c)(6) is 
     amended by inserting ``, except that such term does not 
     include paper which is commonly recycled and which has been 
     segregated from other solid waste (as so defined)'' after 
     ``(42 U.S.C. 6903)''.
       (3) Modification to definition of qualified facility.--
       (A) In general.--The following provisions of section 45(d), 
     as amended by paragraph (1), are each amended by striking 
     ``before January 1, 2014'' and inserting ``the construction 
     of which begins before January 1, 2014'':
       (i) Paragraph (1).
       (ii) Paragraph (2)(A)(i).
       (iii) Paragraph (3)(A)(i)(I).
       (iv) Paragraph (6).
       (v) Paragraph (7).
       (vi) Paragraph (9)(B).
       (vii) Paragraph (11)(B).
       (B) Certain closed-loop biomass facilities.--Subparagraph 
     (A) of section 45(d)(2) is amended by adding at the end the 
     following new flush sentence:
     ``For purposes of clause (ii), a facility shall be treated as 
     modified before January 1, 2014, if the construction of such 
     modification begins before such date.''.
       (C) Certain open-loop biomass facilities.--Clause (ii) of 
     section 45(d)(3)(A) is amended by striking ``is originally 
     placed in service'' and inserting ``the construction of which 
     begins''.
       (D) Geothermal facilities.--
       (i) In general.--Paragraph (4) of section 45(d) is amended 
     by striking ``and before January 1, 2014'' and all that 
     follows and inserting ``and which--
       ``(A) in the case of a facility using solar energy, is 
     placed in service before January 1, 2006, or
       ``(B) in the case of a facility using geothermal energy, 
     the construction of which begins before January 1, 2014.
     Such term shall not include any property described in section 
     48(a)(3) the basis of which is taken into account by the 
     taxpayer for purposes of determining the energy credit under 
     section 48.''.
       (E) Incremental hydropower production.--Paragraph (9) of 
     section 45(d) is amended--
       (i) by redesignating subparagraphs (A) and (B), as amended 
     by subparagraph (A), as clauses (i) and (ii), respectively, 
     and by moving such clauses (as so redesignated) 2 ems to the 
     right,
       (ii) by striking ``In the case of a facility'' and 
     inserting the following:
       ``(A) In general.--In the case of a facility'',
       (iii) by redesignating subparagraph (C) as subparagraph 
     (B), and
       (iv) by adding at the end the following new subparagraph:
       ``(C) Special rule.--For purposes of subparagraph (A)(i), 
     an efficiency improvement or addition to capacity shall be 
     treated as placed in service before January 1, 2014, if the 
     construction of such improvement or addition begins before 
     such date.''.
       (b) Extension of Election to Treat Qualified Facilities as 
     Energy Property.--Subparagraph (C) of section 48(a)(5) is 
     amended to read as follows:
       ``(C) Qualified investment credit facility.--For purposes 
     of this paragraph, the term `qualified investment credit 
     facility' means any facility--
       ``(i) which is a qualified facility (within the meaning of 
     section 45) described in paragraph (1), (2), (3), (4), (6), 
     (7), (9), or (11) of section 45(d),
       ``(ii) which is placed in service after 2008 and the 
     construction of which begins before January 1, 2014, and
       ``(iii) with respect to which--

       ``(I) no credit has been allowed under section 45, and

[[Page 18595]]

       ``(II) the taxpayer makes an irrevocable election to have 
     this paragraph apply.''.

       (c) Technical Corrections.--
       (1) Subparagraph (D) of section 48(a)(5) is amended--
       (A) by striking ``and'' at the end of clause (i)(II),
       (B) by striking the period at the end of clause (ii) and 
     inserting a comma, and
       (C) by adding at the end the following new clauses:
       ``(iii) which is constructed, reconstructed, erected, or 
     acquired by the taxpayer, and
       ``(iv) the original use of which commences with the 
     taxpayer.''.
       (2) Paragraphs (1) and (2) of subsection (a) of section 
     1603 of division B of the American Recovery and Reinvestment 
     Act of 2009 are each amended by striking ``placed in 
     service'' and inserting ``originally placed in service by 
     such person''.
       (d) Effective Dates.--
       (1) In general.--Except as provided in paragraphs (2) and 
     (3), the amendments made by this section shall take effect on 
     the date of the enactment of this Act.
       (2) Modification to definition of municipal solid waste.--
     The amendments made by subsection (a)(2) shall apply to 
     electricity produced and sold after the date of the enactment 
     of this Act, in taxable years ending after such date.
       (3) Technical corrections.--The amendments made by 
     subsection (c) shall apply as if included in the enactment of 
     the provisions of the American Recovery and Reinvestment Act 
     of 2009 to which they relate.

     SEC. 408. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT NEW HOMES.

       (a) In General.--Subsection (g) of section 45L is amended 
     by striking ``December 31, 2011'' and inserting ``December 
     31, 2013''.
       (b) Energy Savings Requirements.--Clause (i) of section 
     45L(c)(1)(A) is amended by striking ``2003 International 
     Energy Conservation Code, as such Code (including 
     supplements) is in effect on the date of the enactment of 
     this section'' and inserting ``2006 International Energy 
     Conservation Code, as such Code (including supplements) is in 
     effect on January 1, 2006''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to homes acquired after December 31, 2011.

     SEC. 409. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT 
                   APPLIANCES.

       (a) In General.--Section 45M(b) is amended by striking 
     ``2011'' each place it appears other than in the provisions 
     specified in subsection (b) and inserting ``2011, 2012, or 
     2013''.
       (b) Provisions Specified.--The provisions of section 45M(b) 
     specified in this subsection are subparagraph (C) of 
     paragraph (1) and subparagraph (E) of paragraph (2).
       (c) Effective Date.--The amendments made by this section 
     shall apply to appliances produced after December 31, 2011.

     SEC. 410. EXTENSION AND MODIFICATION OF SPECIAL ALLOWANCE FOR 
                   CELLULOSIC BIOFUEL PLANT PROPERTY.

       (a) Extension.--
       (1) In general.--Subparagraph (D) of section 168(l)(2) is 
     amended by striking ``January 1, 2013'' and inserting 
     ``January 1, 2014''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to property placed in service after December 31, 
     2012.
       (b) Algae Treated as a Qualified Feedstock for Purposes of 
     Bonus Depreciation for Biofuel Plant Property.--
       (1) In general.--Subparagraph (A) of section 168(l)(2) is 
     amended by striking ``solely to produce cellulosic biofuel'' 
     and inserting ``solely to produce second generation biofuel 
     (as defined in section 40(b)(6)(E))''.
       (2) Conforming amendments.--Subsection (l) of section 168, 
     as amended by subsection (a), is amended--
       (A) by striking ``cellulosic biofuel'' each place it 
     appears in the text thereof and inserting ``second generation 
     biofuel'',
       (B) by striking paragraph (3) and redesignating paragraphs 
     (4) through (8) as paragraphs (3) through (7), respectively,
       (C) by striking ``Cellulosic'' in the heading of such 
     subsection and inserting ``Second Generation'', and
       (D) by striking ``cellulosic'' in the heading of paragraph 
     (2) and inserting ``second generation''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to property placed in service after the date of 
     the enactment of this Act.

     SEC. 411. EXTENSION OF SPECIAL RULE FOR SALES OR DISPOSITIONS 
                   TO IMPLEMENT FERC OR STATE ELECTRIC 
                   RESTRUCTURING POLICY FOR QUALIFIED ELECTRIC 
                   UTILITIES.

       (a) In General.--Paragraph (3) of section 451(i) is amended 
     by striking ``January 1, 2012'' and inserting ``January 1, 
     2014''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to dispositions after December 31, 2011.

     SEC. 412. EXTENSION OF ALTERNATIVE FUELS EXCISE TAX CREDITS.

       (a) In General.--Sections 6426(d)(5) and 6426(e)(3) are 
     each amended by striking ``December 31, 2011'' and inserting 
     ``December 31, 2013''.
       (b) Outlay Payments for Alternative Fuels.--Paragraph (6) 
     of section 6427(e) is amended--
       (1) in subparagraph (C)--
       (A) by striking ``or alternative fuel mixture (as defined 
     in subsection (d)(2) or (e)(3) of section 6426)'' and 
     inserting ``(as defined in section 6426(d)(2))'', and
       (B) by striking ``December 31, 2011, and'' and inserting 
     ``December 31, 2013,'',
       (2) in subparagraph (D)--
       (A) by striking ``or alternative fuel mixture'', and
       (B) by striking the period at the end and inserting ``, 
     and'', and
       (3) by adding at the end the following new subparagraph:
       ``(E) any alternative fuel mixture (as defined in section 
     6426(e)(2)) sold or used after December 31, 2011.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to fuel sold or used after December 31, 2011.

                         TITLE V--UNEMPLOYMENT

     SEC. 501. EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION 
                   PROGRAM.

       (a) Extension.--Section 4007(a)(2) of the Supplemental 
     Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
     note) is amended by striking ``January 2, 2013'' and 
     inserting ``January 1, 2014''.
       (b) Funding.--Section 4004(e)(1) of the Supplemental 
     Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
     note) is amended--
       (1) in subparagraph (H), by striking ``and'' at the end; 
     and
       (2) by inserting after subparagraph (I) the following:
       ``(J) the amendments made by section 501(a) of the American 
     Taxpayer Relief Act of 2012;''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as if included in the enactment of the 
     Unemployment Benefits Extension Act of 2012 (Public Law 112-
     96)

     SEC. 502. TEMPORARY EXTENSION OF EXTENDED BENEFIT PROVISIONS.

       (a) In General.--Section 2005 of the Assistance for 
     Unemployed Workers and Struggling Families Act, as contained 
     in Public Law 111-5 (26 U.S.C. 3304 note), is amended--
       (1) by striking ``December 31, 2012'' each place it appears 
     and inserting ``December 31, 2013''; and
       (2) in subsection (c), by striking ``June 30, 2013'' and 
     inserting ``June 30, 2014''.
       (b) Extension of Matching for States With No Waiting 
     Week.--Section 5 of the Unemployment Compensation Extension 
     Act of 2008 (Public Law 110-449; 26 U.S.C. 3304 note) is 
     amended by striking ``June 30, 2013'' and inserting ``June 
     30, 2014''.
       (c) Extension of Modification of Indicators Under the 
     Extended Benefit Program.--Section 203 of the Federal-State 
     Extended Unemployment Compensation Act of 1970 (26 U.S.C. 
     3304 note) is amended--
       (1) in subsection (d), by striking ``December 31, 2012'' 
     and inserting ``December 31, 2013''; and
       (2) in subsection (f)(2), by striking ``December 31, 2012'' 
     and inserting ``December 31, 2013''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect as if included in the enactment of the 
     Unemployment Benefits Extension Act of 2012 (Public Law 112-
     96).

     SEC. 503. EXTENSION OF FUNDING FOR REEMPLOYMENT SERVICES AND 
                   REEMPLOYMENT AND ELIGIBILITY ASSESSMENT 
                   ACTIVITIES.

       (a) In General.--Section 4004(c)(2)(A) of the Supplemental 
     Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
     note) is amended by striking ``through fiscal year 2013'' and 
     inserting ``through fiscal year 2014''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect as if included in the enactment of the 
     Unemployment Benefits Extension Act of 2012 (Public Law 112-
     96).

     SEC. 504. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER THE 
                   RAILROAD UNEMPLOYMENT INSURANCE ACT.

       (a) Extension.--Section 2(c)(2)(D)(iii) of the Railroad 
     Unemployment Insurance Act, as added by section 2006 of the 
     American Recovery and Reinvestment Act of 2009 (Public Law 
     111-5) and as amended by section 9 of the Worker, 
     Homeownership, and Business Assistance Act of 2009 (Public 
     Law 111-92), section 505 of the Tax Relief, Unemployment 
     Insurance Reauthorization, and Job Creation Act of 2010 
     (Public Law 111-312), section 202 of the Temporary Payroll 
     Tax Cut Continuation Act of 2011 (Public Law 112-78), and 
     section 2124 of the Unemployment Benefits Extension Act of 
     2012 (Public Law 112-96), is amended--
       (1) by striking ``June 30, 2012'' and inserting ``June 30, 
     2013''; and
       (2) by striking ``December 31, 2012'' and inserting 
     ``December 31, 2013''.
       (b) Clarification on Authority to Use Funds.--Funds 
     appropriated under either the first or second sentence of 
     clause (iv) of section 2(c)(2)(D) of the Railroad 
     Unemployment Insurance Act shall be available to cover the 
     cost of additional extended unemployment benefits provided 
     under such section 2(c)(2)(D) by reason of the amendments 
     made by subsection (a) as well as to cover the cost of such 
     benefits provided under such section 2(c)(2)(D), as in effect 
     on the day before the date of enactment of this Act.
       (c) Funding for Administration.--Out of any funds in the 
     Treasury not otherwise appropriated, there are appropriated 
     to the Railroad Retirement Board $250,000 for administrative 
     expenses associated with the payment of additional extended 
     unemployment benefits provided under section 2(c)(2)(D) of 
     the Railroad Unemployment Insurance Act by reason of the 
     amendments made by subsection (a), to remain available until 
     expended.

[[Page 18596]]



             TITLE VI--MEDICARE AND OTHER HEALTH EXTENSIONS

                    Subtitle A--Medicare Extensions

     SEC. 601. MEDICARE PHYSICIAN PAYMENT UPDATE.

       (a) In General.--Section 1848(d) of the Social Security Act 
     (42 U.S.C. 1395w-4(d)) is amended by adding at the end the 
     following new paragraph:
       ``(14) Update for 2013.--
       ``(A) In general.--Subject to paragraphs (7)(B), (8)(B), 
     (9)(B), (10)(B), (11)(B), (12)(B), and (13)(B), in lieu of 
     the update to the single conversion factor established in 
     paragraph (1)(C) that would otherwise apply for 2013, the 
     update to the single conversion factor for such year shall be 
     zero percent.
       ``(B) No effect on computation of conversion factor for 
     2014 and subsequent years.--The conversion factor under this 
     subsection shall be computed under paragraph (1)(A) for 2014 
     and subsequent years as if subparagraph (A) had never 
     applied.''.
       (b) Advancement of Clinical Data Registries To Improve the 
     Quality of Health Care.--
       (1) In general.--Section 1848(m)(3) of the Social Security 
     Act (42 U.S.C. 1395w-4(m)(3)) is amended--
       (A) by redesignating subparagraph (D) as subparagraph (F); 
     and
       (B) by inserting after subparagraph (C) the following new 
     subparagraphs:
       ``(D) Satisfactory reporting measures through participation 
     in a qualified clinical data registry.--For 2014 and 
     subsequent years, the Secretary shall treat an eligible 
     professional as satisfactorily submitting data on quality 
     measures under subparagraph (A) if, in lieu of reporting 
     measures under subsection (k)(2)(C), the eligible 
     professional is satisfactorily participating, as determined 
     by the Secretary, in a qualified clinical data registry (as 
     described in subparagraph (E)) for the year.
       ``(E) Qualified clinical data registry.--
       ``(i) In general.--The Secretary shall establish 
     requirements for an entity to be considered a qualified 
     clinical data registry. Such requirements shall include a 
     requirement that the entity provide the Secretary with such 
     information, at such times, and in such manner, as the 
     Secretary determines necessary to carry out this subsection.
       ``(ii) Considerations.--In establishing the requirements 
     under clause (i), the Secretary shall consider whether an 
     entity--

       ``(I) has in place mechanisms for the transparency of data 
     elements and specifications, risk models, and measures;
       ``(II) requires the submission of data from participants 
     with respect to multiple payers;
       ``(III) provides timely performance reports to participants 
     at the individual participant level; and
       ``(IV) supports quality improvement initiatives for 
     participants.

       ``(iii) Measures.--With respect to measures used by a 
     qualified clinical data registry--

       ``(I) sections 1890(b)(7) and 1890A(a) shall not apply; and
       ``(II) measures endorsed by the entity with a contract with 
     the Secretary under section 1890(a) may be used.

       ``(iv) Consultation.--In carrying out this subparagraph, 
     the Secretary shall consult with interested parties.
       ``(v) Determination.--The Secretary shall establish a 
     process to determine whether or not an entity meets the 
     requirements established under clause (i). Such process may 
     involve one or both of the following:

       ``(I) A determination by the Secretary.
       ``(II) A designation by the Secretary of one or more 
     independent organizations to make such determination.''.

       (2) GAO study and report on incorporating registry data 
     into the medicare program in order to improve quality and 
     efficiency.--
       (A) Study.--The Comptroller General of the United States 
     shall conduct a study on the potential of clinical data 
     registries to improve the quality and efficiency of care in 
     the Medicare program, including through payment system 
     incentives. Such study shall include an analysis of the role 
     of health information technology in facilitating clinical 
     data registries and the use of data from such registries 
     among private health insurers as well as other entities the 
     Comptroller General determines appropriate.
       (B) Report.--Not later than November 15, 2013, the 
     Comptroller General of the United States shall submit to 
     Congress a report on the study conducted under subparagraph 
     (A), together with recommendations for such legislation and 
     administrative action as the Comptroller General determines 
     appropriate.

     SEC. 602. WORK GEOGRAPHIC ADJUSTMENT.

       Section 1848(e)(1)(E) of the Social Security Act (42 U.S.C. 
     1395w-4(e)(1)(E)) is amended by striking ``before January 1, 
     2013'' and inserting ``before January 1, 2014''.

     SEC. 603. PAYMENT FOR OUTPATIENT THERAPY SERVICES.

       (a) Extension.--Section 1833(g) of the Social Security Act 
     (42 U.S.C. 1395l(g)) is amended--
       (1) in paragraph (5)(A), in the first sentence, by striking 
     ``December 31, 2012'' and inserting ``December 31, 2013''; 
     and
       (2) in paragraph (6)--
       (A) by striking ``December 31, 2012'' and inserting 
     ``December 31, 2013''; and
       (B) by inserting ``or 2013'' after ``during 2012''.
       (b) Application of Therapy Cap to Therapy Furnished as Part 
     of Outpatient Critical Access Hospital Services.--Section 
     1833(g)(6) of the Social Security Act (42 U.S.C. 
     1395l(g)(6)), as amended by subsection (a), is amended--
       (1) by striking ``In applying'' and inserting ``(A) In 
     applying''; and
       (2) by adding at the end the following new subparagraph:
       ``(B)(i) With respect to outpatient therapy services 
     furnished beginning on or after January 1, 2013, and before 
     January 1, 2014, for which payment is made under section 
     1834(g), the Secretary shall count toward the uniform dollar 
     limitations described in paragraphs (1) and (3) and the 
     threshold described in paragraph (5)(C) the amount that would 
     be payable under this part if such services were paid under 
     section 1834(k)(1)(B) instead of being paid under section 
     1834(g).
       ``(ii) Nothing in clause (i) shall be construed as changing 
     the method of payment for outpatient therapy services under 
     section 1834(g).''.
       (c) Beneficiary Protections.--Section 1833(g)(5) of the 
     Social Security Act (42 U.S.C. 1395l(g)(5)) is amended by 
     adding at the end the following new subparagraph:
       ``(D) With respect to services furnished on or after 
     January 1, 2013, where payment may not be made as a result of 
     application of paragraphs (1) and (3), section 1879 shall 
     apply in the same manner as such section applies to a denial 
     that is made by reason of section 1862(a)(1).''.
       (d) Implementation.--Notwithstanding any other provision of 
     law, the Secretary of Health and Human Services may implement 
     the provisions of, and the amendments made by, this section 
     by program instruction or otherwise.

     SEC. 604. AMBULANCE ADD-ON PAYMENTS.

       (a) Ground Ambulance.--Section 1834(l)(13)(A) of the Social 
     Security Act (42 U.S.C. 1395m(l)(13)(A)) is amended--
       (1) in the matter preceding clause (i), by striking 
     ``January 1, 2013'' and inserting ``January 1, 2014''; and
       (2) in each of clauses (i) and (ii), by striking ``January 
     1, 2013'' and inserting ``January 1, 2014'' each place it 
     appears.
       (b) Air Ambulance.--Section 146(b)(1) of the Medicare 
     Improvements for Patients and Providers Act of 2008 (Public 
     Law 110-275), as amended by sections 3105(b) and 10311(b) of 
     the Patient Protection and Affordable Care Act (Public Law 
     111-148), section 106(b) of the Medicare and Medicaid 
     Extenders Act of 2010 (Public Law 111-309), section 306(b) of 
     the Temporary Payroll Tax Cut Continuation Act of 2011 
     (Public Law 112-78), and section 3007(b) of the Middle Class 
     Tax Relief and Job Creation Act of 2012 (Public Law 112-96), 
     is amended by striking ``December 31, 2012'' and inserting 
     ``June 30, 2013''.
       (c) Super Rural Ambulance.--Section 1834(l)(12)(A) of the 
     Social Security Act (42 U.S.C. 1395m(l)(12)(A)) is amended in 
     the first sentence by striking ``January 1, 2013'' and 
     inserting ``January 1, 2014''.
       (d) Studies of Ambulance Costs.--
       (1) In general.--The Secretary of Health and Health and 
     Human Services (in this subsection referred to as the 
     ``Secretary'') shall conduct a study of each of the 
     following:
       (A) A study that analyzes data on existing cost reports for 
     ambulance services furnished by hospitals and critical access 
     hospitals, including variation by characteristics of such 
     providers of services.
       (B) A study of the feasibility of obtaining cost data on a 
     periodic basis from all ambulance providers of services and 
     suppliers for potential use in examining the appropriateness 
     of the Medicare add-on payments for ground ambulance services 
     furnished under the fee schedule under section 1834(l) of the 
     Social Security Act (42 U.S.C. 1395m(l)) and in preparing for 
     future reform of such payment system.
       (2) Components of one of the studies.--In conducting the 
     study under paragraph (1)(B), the Secretary shall--
       (A) consult with industry on the design of such cost 
     collection efforts;
       (B) explore use of cost surveys and cost reports to collect 
     appropriate cost data and the periodicity of such cost data 
     collection;
       (C) examine the feasibility of development of a standard 
     cost reporting tool for providers of services and suppliers 
     of ground ambulance services; and
       (D) examine the ability to furnish such cost data by 
     various types of ambulance providers of services and 
     suppliers, especially by rural and super-rural providers of 
     services and suppliers.
       (3) Reports.--
       (A) Existing cost reports.--Not later than October 1, 2013, 
     the Secretary shall submit a report to Congress on the study 
     conducted under paragraph (1)(A), together with 
     recommendations for such legislation and administrative 
     action as the Secretary determines appropriate.
       (B) Obtaining cost data.--Not later than July 1, 2014, the 
     Secretary shall submit a report to Congress on the study 
     conducted under paragraph (1)(B), together with 
     recommendations for such legislation and administrative 
     action as the Secretary determines appropriate.

     SEC. 605. EXTENSION OF MEDICARE INPATIENT HOSPITAL PAYMENT 
                   ADJUSTMENT FOR LOW-VOLUME HOSPITALS.

       Section 1886(d)(12) of the Social Security Act (42 U.S.C. 
     1395ww(d)(12)) is amended--
       (1) in subparagraph (B), in the matter preceding clause 
     (i), by striking ``2013'' and inserting ``2014'';
       (2) in subparagraph (C)(i), by striking ``and 2012'' each 
     place it appears and inserting ``, 2012, and 2013''; and
       (3) in subparagraph (D), by striking ``and 2012'' and 
     inserting ``, 2012, and 2013''.

[[Page 18597]]



     SEC. 606. EXTENSION OF THE MEDICARE-DEPENDENT HOSPITAL (MDH) 
                   PROGRAM.

       (a) Extension of Payment Methodology.--Section 
     1886(d)(5)(G) of the Social Security Act (42 U.S.C. 
     1395ww(d)(5)(G)) is amended--
       (1) in clause (i), by striking ``October 1, 2012'' and 
     inserting ``October 1, 2013''; and
       (2) in clause (ii)(II), by striking ``October 1, 2012'' and 
     inserting ``October 1, 2013''.
       (b) Conforming Amendments.--
       (1) Extension of target amount.--Section 1886(b)(3)(D) of 
     the Social Security Act (42 U.S.C. 1395ww(b)(3)(D)) is 
     amended--
       (A) in the matter preceding clause (i), by striking 
     ``October 1, 2012'' and inserting ``October 1, 2013''; and
       (B) in clause (iv), by striking ``through fiscal year 
     2012'' and inserting ``through fiscal year 2013''.
       (2) Permitting hospitals to decline reclassification.--
     Section 13501(e)(2) of the Omnibus Budget Reconciliation Act 
     of 1993 (42 U.S.C. 1395ww note) is amended by striking 
     ``through fiscal year 2012'' and inserting ``through fiscal 
     year 2013''.

     SEC. 607. EXTENSION FOR SPECIALIZED MEDICARE ADVANTAGE PLANS 
                   FOR SPECIAL NEEDS INDIVIDUALS.

       Section 1859(f)(1) of the Social Security Act (42 U.S.C. 
     1395w-28(f)(1)) is amended by striking ``2014'' and inserting 
     ``2015''.

     SEC. 608. EXTENSION OF MEDICARE REASONABLE COST CONTRACTS.

       Section 1876(h)(5)(C)(ii) of the Social Security Act (42 
     U.S.C. 1395mm(h)(5)(C)(ii)) is amended, in the matter 
     preceding subclause (I), by striking ``January 1, 2013'' and 
     inserting ``January 1, 2014''.

     SEC. 609. PERFORMANCE IMPROVEMENT.

       (a) Extension of Funding for Contract With Consensus-based 
     Entity Regarding Performance Measurement.--
       (1) In general.--Section 1890(d) of the Social Security Act 
     (42 U.S.C. 1395aaa(d)) is amended by striking ``fiscal years 
     2009 through 2012'' and inserting ``fiscal years 2009 through 
     2013''.
       (2) Revision to duties.--Section 1890(b) of the Social 
     Security Act (42 U.S.C. 1395aaa(b)) is amended by striking 
     paragraph (4).
       (b) Providing Data for Performance Improvement in a Timely 
     Manner.--
       (1) In general.--The Secretary of Health and Human Services 
     (in this subsection referred to as the ``Secretary'') shall 
     develop a strategy to provide data for performance 
     improvement in a timely manner to applicable providers under 
     the Medicare program under title XVIII of the Social Security 
     Act (42 U.S.C. 1395 et seq.), including with respect to the 
     provision of the following:
       (A) Utilization data, including such data for items and 
     services under parts A, B, and D of the Medicare program.
       (B) Feedback on quality data submitted by the applicable 
     provider under the Medicare program.
       (2) Considerations.--In developing the strategy under 
     paragraph (1), the Secretary shall consider--
       (A) the type of applicable provider receiving the data;
       (B) the frequency of providing the data so that it can be 
     the most relevant in improving provider performance;
       (C) risk adjustment methods;
       (D) presentation of the data in a meaningful manner and 
     easily understandable format;
       (E) with respect to utilization data, the provision of data 
     that the Secretary determines would be useful to improve the 
     performance of the type of applicable provider involved; and
       (F) administrative costs involved with providing data.
       (3) Submission and availability of initial strategy.--Not 
     later than 1 year after the date of the enactment of this 
     Act, the Secretary shall--
       (A) submit to the relevant committees of Congress the 
     strategy described in paragraph (1); and
       (B) post such strategy on the website of the Centers for 
     Medicare & Medicaid Services.
       (4) Strategy update.--
       (A) Feedback from stakeholders.--The Secretary shall seek 
     feedback from stakeholders on the initial strategy submitted 
     under paragraph (3).
       (B) Strategy update.--The Secretary shall--
       (i) update the strategy described in paragraph (1) based on 
     the feedback submitted under subparagraph (A); and
       (ii) not later than 18 months after the date of the 
     enactment of this Act--

       (I) submit such updated strategy to the relevant committees 
     of Congress; and
       (II) post such updated strategy on the website of the 
     Centers for Medicare & Medicaid Services.

       (5) GAO study and report on private sector information 
     sharing activities.--
       (A) Study.--The Comptroller General of the United States 
     (in this paragraph referred to as the ``Comptroller 
     General'') shall conduct a study on information sharing 
     activities. Such study shall include an analysis of--
       (i) how private sector entities share timely data with 
     hospitals, physicians, and other providers and what lessons 
     can be learned from those activities;
       (ii) how the Medicare program currently shares data with 
     providers, including what data is provided and to which 
     providers, and what divisions within the Centers for Medicare 
     & Medicaid Services oversee those efforts;
       (iii) what, if any, differences there are between the 
     private sector and the Medicare program under title XVIII of 
     the Social Security Act (42 U.S.C. 1395 et seq.) in terms of 
     sharing data; and
       (iv) what, if any, barriers there are for the Centers for 
     Medicare & Medicaid Services to sharing timely data with 
     applicable providers and recommendations to eliminate or 
     reduce such barriers.
       (B) Report.--Not later than 8 months after the date of the 
     enactment of this Act, the Comptroller General shall submit 
     to the relevant committees of Congress a report containing 
     the results of the study conducted under subparagraph (A), 
     together with recommendations for such legislation and 
     administrative action as the Comptroller General determines 
     appropriate.
       (6) Definitions.--In this subsection:
       (A) Applicable provider.--The term ``applicable provider'' 
     means the following:
       (i) A critical access hospital (as defined in section 
     1861(mm)(1) of the Social Security Act (42 U.S.C. 
     1395xx(mm)(1))).
       (ii) A hospital (as defined in section 1861(e) of such Act 
     (42 U.S.C. 1395x(e))).
       (iii) A physician (as defined in section 1861(r) of such 
     Act (42 U.S.C. 1395x(r))).
       (iv) Any other provider the Secretary determines should 
     receive the information described in subsection (a).
       (B) Performance improvement.--The term ``performance 
     improvement'' means improvements in quality, reducing per 
     capita costs, and other criteria the Secretary determines 
     appropriate.

     SEC. 610. EXTENSION OF FUNDING OUTREACH AND ASSISTANCE FOR 
                   LOW-INCOME PROGRAMS.

       (a) Additional Funding for State Health Insurance 
     Programs.--Subsection (a)(1)(B) of section 119 of the 
     Medicare Improvements for Patients and Providers Act of 2008 
     (42 U.S.C. 1395b-3 note), as amended by section 3306 of the 
     Patient Protection and Affordable Care Act Public Law 111-
     148), is amended--
       (1) in clause (i), by striking ``and'' at the end;
       (2) in clause (ii), by striking the period at the end and 
     inserting ``; and''; and
       (3) by inserting after clause (ii) the following new 
     clause:
       ``(iii) for fiscal year 2013, of $7,500,000.''.
       (b) Additional Funding for Area Agencies on Aging.--
     Subsection (b)(1)(B) of such section 119, as so amended, is 
     amended--
       (1) in clause (i), by striking ``and'' at the end;
       (2) in clause (ii), by striking the period at the end and 
     inserting ``; and''; and
       (3) by inserting after clause (ii) the following new 
     clause:
       ``(iii) for fiscal year 2013, of $7,500,000.''.
       (c) Additional Funding for Aging and Disability Resource 
     Centers.--Subsection (c)(1)(B) of such section 119, as so 
     amended, is amended--
       (1) in clause (i), by striking ``and'' at the end;
       (2) in clause (ii), by striking the period at the end and 
     inserting ``; and''; and
       (3) by inserting after clause (ii) the following new 
     clause:
       ``(iii) for fiscal year 2013, of $5,000,000.''.
       (d) Additional Funding for Contract With the National 
     Center for Benefits and Outreach Enrollment.--Subsection 
     (d)(2) of such section 119, as so amended, is amended--
       (1) in clause (i), by striking ``and'' at the end;
       (2) in clause (ii), by striking the period at the end and 
     inserting ``; and''; and
       (3) by inserting after clause (ii) the following new 
     clause:
       ``(iii) for fiscal year 2013, of $5,000,000.''.

                  Subtitle B--Other Health Extensions

     SEC. 621. EXTENSION OF THE QUALIFYING INDIVIDUAL (QI) 
                   PROGRAM.

       (a) Extension.--Section 1902(a)(10)(E)(iv) of the Social 
     Security Act (42 U.S.C. 1396a(a)(10)(E)(iv)) is amended by 
     striking ``2012'' and inserting ``2013''.
       (b) Extending Total Amount Available for Allocation.--
     Section 1933(g) of such Act (42 U.S.C. 1396u-3(g)) is 
     amended--
       (1) in paragraph (2)--
       (A) in subparagraph (Q), by striking ``and'' after the 
     semicolon;
       (B) in subparagraph (R), by striking the period at the end 
     and inserting a semicolon; and
       (C) by adding at the end the following new subparagraphs:
       ``(S) for the period that begins on January 1, 2013, and 
     ends on September 30, 2013, the total allocation amount is 
     $485,000,000; and
       ``(T) for the period that begins on October 1, 2013, and 
     ends on December 31, 2013, the total allocation amount is 
     $300,000,000.''; and
       (2) in paragraph (3), in the matter preceding subparagraph 
     (A), by striking ``or (R)'' and inserting ``(R), or (T)''.

     SEC. 622. EXTENSION OF TRANSITIONAL MEDICAL ASSISTANCE (TMA).

       Sections 1902(e)(1)(B) and 1925(f) of the Social Security 
     Act (42 U.S.C. 1396a(e)(1)(B), 1396r-6(f)) are each amended 
     by striking ``2012'' and inserting ``2013''.

     SEC. 623. EXTENSION OF MEDICAID AND CHIP EXPRESS LANE OPTION.

       Section 1902(e)(13)(I) of the Social Security Act (42 
     U.S.C. 1396a(e)(13)(I)) is amended by striking ``2013'' and 
     inserting ``2014''.

     SEC. 624. EXTENSION OF FAMILY-TO-FAMILY HEALTH INFORMATION 
                   CENTERS.

       Section 501(c)(1)(A)(iii) of the Social Security Act (42 
     U.S.C. 701(c)(1)(A)(iii)) is amended by striking ``2012'' and 
     inserting ``2013''.

     SEC. 625. EXTENSION OF SPECIAL DIABETES PROGRAM FOR TYPE I 
                   DIABETES AND FOR INDIANS.

       (a) Special Diabetes Programs for Type I Diabetes.--Section 
     330B(b)(2)(C) of the Public

[[Page 18598]]

     Health Service Act (42 U.S.C. 254c-2(b)(2)(C)) is amended by 
     striking ``2013'' and inserting ``2014''.
       (b) Special Diabetes Programs for Indians.--Section 
     330C(c)(2)(C) of the Public Health Service Act (42 U.S.C. 
     254c-3(c)(2)(C)) is amended by striking ``2013'' and 
     inserting ``2014''.

                  Subtitle C--Other Health Provisions

     SEC. 631. IPPS DOCUMENTATION AND CODING ADJUSTMENT FOR 
                   IMPLEMENTATION OF MS-DRGS.

       (a) Rule of Construction and Clarification.--
       (1) Rule of construction.--Nothing in the amendments made 
     by subsection (b) shall be construed as changing the existing 
     authority under section 1886(d) of the Social Security Act 
     (42 U.S.C. 1395ww(d)) to make prospective documentation and 
     coding adjustments to the standardized amounts under such 
     section 1886(d) to correct for changes in the coding or 
     classification of discharges that do not reflect real changes 
     in case mix.
       (2) Clarification.--Effective on the date of the enactment 
     of this section, except as provided in section 7(b)(1)(B)(ii) 
     of the TMA, Abstinence Education, and QI Programs Extension 
     Act of 2007, as added by subsection (b)(2)(A)(ii)(IV) of this 
     section, the Secretary of Health and Human Services shall not 
     have authority to fully recoup past overpayments related to 
     documentation and coding changes from fiscal years 2008 and 
     2009.
       (b) Adjustment.--Section 7 of the TMA, Abstinence 
     Education, and QI Programs Extension Act of 2007 (Public Law 
     110-90; 121 Stat. 986) is amended--
       (1) in the heading, by striking ``LIMITATION'' and all that 
     follows through ``ADJUSTMENT'' and inserting ``DOCUMENTATION 
     AND CODING ADJUSTMENTS''; and
       (2) in subsection (b)--
       (A) in paragraph (1)--
       (i) in the matter before subparagraph (A)--

       (I) by striking ``or 2009'' and inserting ``, 2009, or 
     2010''; and
       (II) by inserting ``or otherwise applied for such year'' 
     after ``applied under subsection (a)''; and

       (ii) in subparagraph (B)--

       (I) by inserting ``(i)'' after ``(B)'';
       (II) by striking ``or decrease'';
       (III) by striking the period at the end and inserting ``; 
     and''; and
       (IV) by adding at the end the following:

       ``(ii) make an additional adjustment to the standardized 
     amounts under such section 1886(d) based upon the Secretary's 
     estimates for discharges occurring only during fiscal years 
     2014, 2015, 2016, and 2017 to fully offset $11,000,000,000 
     (which represents the amount of the increase in aggregate 
     payments from fiscal years 2008 through 2013 for which an 
     adjustment was not previously applied).''; and
       (B) in paragraph (3)--
       (i) in subparagraph (A), by inserting before the semicolon 
     the following: ``or affecting the Secretary's authority under 
     such paragraph to apply a prospective adjustment to offset 
     aggregate additional payments related to documentation and 
     coding improvements made with respect to discharges during 
     fiscal year 2010''; and
       (ii) in subparagraph (B), by striking ``and 2012'' and 
     inserting ``2012, 2014, 2015, 2016, and 2017''.

     SEC. 632. REVISIONS TO THE MEDICARE ESRD BUNDLED PAYMENT 
                   SYSTEM TO REFLECT FINDINGS IN THE GAO REPORT.

       (a) Adjustment to ESRD Bundled Payment Rate To Account for 
     Changes in the Utilization of Certain Drugs and 
     Biologicals.--Section 1881(b)(14) of the Social Security Act 
     (42 U.S.C. 1395rr(b)(14)) is amended by adding at the end the 
     following new subparagraph:
       ``(I) For services furnished on or after January 1, 2014, 
     the Secretary shall, by comparing per patient utilization 
     data from 2007 with such data from 2012, make reductions to 
     the single payment that would otherwise apply under this 
     paragraph for renal dialysis services to reflect the 
     Secretary's estimate of the change in the utilization of 
     drugs and biologicals described in clauses (ii), (iii), and 
     (iv) of subparagraph (B) (other than oral-only ESRD-related 
     drugs, as such term is used in the final rule promulgated by 
     the Secretary in the Federal Register on August 12, 2010 (75 
     Fed. Reg. 49030)). In making reductions under the preceding 
     sentence, the Secretary shall take into account the most 
     recently available data on average sales prices and changes 
     in prices for drugs and biological reflected in the ESRD 
     market basket percentage increase factor under subparagraph 
     (F).''.
       (b) Two-year Delay of Implementation of Oral-Only ESRD-
     Related Drugs in the ESRD Prospective Payment System; 
     Monitoring.--
       (1) Delay.--The Secretary of Health and Human Services may 
     not implement the policy under section 413.174(f)(6) of title 
     42, Code of Federal Regulations (relating to oral-only ESRD-
     related drugs in the ESRD prospective payment system), prior 
     to January 1, 2016.
       (2) Monitoring.--With respect to the implementation of 
     oral-only ESRD-related drugs in the ESRD prospective payment 
     system under subsection (b)(14) of section 1881 of the Social 
     Security Act (42 U.S.C. 1395rr(b)(14)), the Secretary of 
     Health and Human Services shall monitor the bone and mineral 
     metabolism of individuals with end stage renal disease.
       (c) Analysis of Case Mix Payment Adjustments.--By not later 
     than January 1, 2016, the Secretary of Health and Human 
     Services shall--
       (1) conduct an analysis of the case mix payment adjustments 
     being used under section 1881(b)(14)(D)(i) of the Social 
     Security Act (42 U.S.C. 1395rr(b)(14)(D)(i)); and
       (2) make appropriate revisions to such case mix payment 
     adjustments.
       (d) Updated GAO Report.--Not later than December 31, 2015, 
     the Comptroller General of the United States shall submit to 
     Congress a report that updates the report submitted to 
     Congress under section 10336 of the Patient Protection and 
     Affordable Care Act (Public Law 111-148; 124 Stat. 974). The 
     updated report shall include an analysis of how the Secretary 
     of Health and Human Services has addressed points raised in 
     the report submitted under such section 10336 with respect to 
     the Secretary's preparations to implement payment for oral-
     only ESRD-related drugs in the bundled prospective payment 
     system under section 1881(b)(14) of the Social Security Act 
     (42 U.S.C. 1395rr(b)(14)).

     SEC. 633. TREATMENT OF MULTIPLE SERVICE PAYMENT POLICIES FOR 
                   THERAPY SERVICES.

       (a) Services Furnished by Physicians and Certain Other 
     Providers.--Section 1848(b)(7) of the Social Security Act (42 
     U.S.C. 1395w-4(b)(7)) is amended--
       (1) by striking ``2011,'' and inserting ``2011, and before 
     April 1, 2013,''; and
       (2) by adding at the end the following new sentence: ``In 
     the case of such services furnished on or after April 1, 
     2013, and for which payment is made under such fee schedules, 
     instead of the 25 percent multiple procedure payment 
     reduction specified in such final rule, the reduction 
     percentage shall be 50 percent.''.
       (b) Services Furnished by Other Providers.--Section 1834(k) 
     of the Social Security Act (42 U.S.C. 1395m(k)) is amended by 
     adding at the end the following new paragraph:
       ``(7) Adjustment in discount for certain multiple therapy 
     services.--In the case of therapy services furnished on or 
     after April 1, 2013, and for which payment is made under this 
     subsection pursuant to the applicable fee schedule amount (as 
     defined in paragraph (3)), instead of the 25 percent multiple 
     procedure payment reduction specified in the final rule 
     published by the Secretary in the Federal Register on 
     November 29, 2010, the reduction percentage shall be 50 
     percent.''.

     SEC. 634. PAYMENT FOR CERTAIN RADIOLOGY SERVICES FURNISHED 
                   UNDER THE MEDICARE HOSPITAL OUTPATIENT 
                   DEPARTMENT PROSPECTIVE PAYMENT SYSTEM.

       Section 1833(t)(16) of the Social Security Act (42 U.S.C. 
     1395l(t)(16)) is amended by adding at the end the following 
     new subparagraph:
       ``(D) Special payment rule.--
       ``(i) In general.--In the case of covered OPD services 
     furnished on or after April 1, 2013, in a hospital described 
     in clause (ii), if--

       ``(I) the payment rate that would otherwise apply under 
     this subsection for stereotactic radiosurgery, complete 
     course of treatment of cranial lesion(s) consisting of 1 
     session that is multi-source Cobalt 60 based (identified as 
     of January 1, 2013, by HCPCS code 77371 (and any succeeding 
     code) and reimbursed as of such date under APC 0127 (and any 
     succeeding classification group)); exceeds
       ``(II) the payment rate that would otherwise apply under 
     this subsection for linear accelerator based stereotactic 
     radiosurgery, complete course of therapy in one session 
     (identified as of January 1, 2013, by HCPCS code G0173 (and 
     any succeeding code) and reimbursed as of such date under APC 
     0067 (and any succeeding classification group)),

     the payment rate for the service described in subclause (I) 
     shall be reduced to an amount equal to the payment rate for 
     the service described in subclause (II).
       ``(ii) Hospital described.--A hospital described in this 
     clause is a hospital that is not--

       ``(I) located in a rural area (as defined in section 
     1886(d)(2)(D));
       ``(II) classified as a rural referral center under section 
     1886(d)(5)(C); or
       ``(III) a sole community hospital (as defined in section 
     1886(d)(5)(D)(iii)).

       ``(iii) Not budget neutral.--In making any budget 
     neutrality adjustments under this subsection for 2013 (with 
     respect to covered OPD services furnished on or after April 
     1, 2013, and before January 1, 2014) or a subsequent year, 
     the Secretary shall not take into account the reduced 
     expenditures that result from the application of this 
     subparagraph.''.

     SEC. 635. ADJUSTMENT OF EQUIPMENT UTILIZATION RATE FOR 
                   ADVANCED IMAGING SERVICES.

       Section 1848 of the Social Security Act (42 U.S.C. 1395w-4) 
     is amended--
       (1) in subsection (b)(4)(C)--
       (A) by striking ``and subsequent years'' and inserting ``, 
     2012, and 2013''; and
       (B) by adding at the end the following new sentence: ``With 
     respect to fee schedules established for 2014 and subsequent 
     years, in such methodology, the Secretary shall use a 90 
     percent utilization rate.''; and
       (2) in subsection (c)(2)(B)(v)(III), by striking ``change 
     in the utilization rate applicable to 2011, as described in'' 
     and inserting ``changes in the utilization rate applicable to 
     2011 and 2014, as described in the first and second sentence, 
     respectively, of''.

     SEC. 636. MEDICARE PAYMENT OF COMPETITIVE PRICES FOR DIABETIC 
                   SUPPLIES AND ELIMINATION OF OVERPAYMENT FOR 
                   DIABETIC SUPPLIES.

       (a) Application of Competitive Bidding Prices for Diabetic 
     Supplies.--Section 1834(a)(1) of the Social Security Act (42 
     U.S.C. 1395m(a)(1)) is amended--

[[Page 18599]]

       (1) in subparagraph (F), in the matter preceding clause 
     (i), by striking ``subparagraph (G)'' and inserting 
     ``subparagraphs (G) and (H)''; and
       (2) by adding at the end the following new subparagraph:
       ``(H) Diabetic supplies.--
       ``(i) In general.--On or after the date described in clause 
     (ii), the payment amount under this part for diabetic 
     supplies, including testing strips, that are non-mail order 
     items (as defined by the Secretary) shall be equal to the 
     single payment amounts established under the national mail 
     order competition for diabetic supplies under section 1847.
       ``(ii) Date described.--The date described in this clause 
     is the date of the implementation of the single payment 
     amounts under the national mail order competition for 
     diabetic supplies under section 1847.''.
       (b) Overpayment Elimination for Diabetic Supplies.--Section 
     1834(a) of the Social Security Act (42 U.S.C. 1395m(a)) is 
     amended by adding at the end the following new paragraph:
       ``(22) Special payment rule for diabetic supplies.--
     Notwithstanding the preceding provisions of this subsection, 
     for purposes of determining the payment amount under this 
     subsection for diabetic supplies furnished on or after the 
     first day of the calendar quarter during 2013 that is at 
     least 30 days after the date of the enactment of this 
     paragraph and before the date described in paragraph 
     (1)(H)(ii), the Secretary shall recalculate and apply the 
     covered item update under paragraph (14) as if subparagraph 
     (J)(i) of such paragraph was amended by striking `but only if 
     furnished through mail order'.''.

     SEC. 637. MEDICARE PAYMENT ADJUSTMENT FOR NON-EMERGENCY 
                   AMBULANCE TRANSPORTS FOR ESRD BENEFICIARIES.

       Section 1834(l) of the Social Security Act (42 U.S.C. 
     1395m(l)) is amended by adding at the end the following new 
     paragraph:
       ``(15) Payment adjustment for non-emergency ambulance 
     transports for esrd beneficiaries.--The fee schedule amount 
     otherwise applicable under the preceding provisions of this 
     subsection shall be reduced by 10 percent for ambulance 
     services furnished on or after October 1, 2013, consisting of 
     non-emergency basic life support services involving transport 
     of an individual with end-stage renal disease for renal 
     dialysis services (as described in section 1881(b)(14)(B)) 
     furnished other than on an emergency basis by a provider of 
     services or a renal dialysis facility.''.

     SEC. 638. REMOVING OBSTACLES TO COLLECTION OF OVERPAYMENTS.

       (a) In General.--The last sentence of subsections (b) and 
     (c) of section 1870 of the Social Security Act (42 U.S.C. 
     1395gg) are each amended--
       (1) by striking ``third year'' and inserting ``fifth 
     year''; and
       (2) by striking ``three-year'' and inserting ``five-year''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on the date of the enactment of this Act.

     SEC. 639. MEDICARE ADVANTAGE CODING INTENSITY ADJUSTMENT.

       Section 1853(a)(1)(C)(ii)(III) of the Social Security Act 
     (42 U.S.C. 1395w-23(a)(1)(C)(ii)(III)) is amended--
       (1) by striking ``1.3 percentage points'' and inserting 
     ``1.5 percentage points''; and
       (2) by striking ``5.7 percent'' and inserting ``5.9 
     percent''.

     SEC. 640. ELIMINATION OF ALL FUNDING FOR THE MEDICARE 
                   IMPROVEMENT FUND.

       Section 1898(b)(1) of the Social Security Act (42 U.S.C. 
     1395iii(b)(1)) is amended by striking subparagraphs (A), (B), 
     and (C) and inserting the following new subparagraphs:
       ``(A) fiscal year 2014, $0; and
       ``(B) fiscal year 2015, $0.''.

     SEC. 641. REBASING OF STATE DSH ALLOTMENTS.

       Section 1923(f)(8) of the Social Security Act (42 U.S.C. 
     1396r-4(f)(8)) is amended to read as follows:
       ``(8) Special rules for calculating dsh allotments for 
     certain fiscal years.--
       ``(A) Fiscal year 2021.--Only with respect to fiscal year 
     2021, the DSH allotment for a State, in lieu of the amount 
     determined under paragraph (3) for the State for that year, 
     shall be equal to the DSH allotment for the State as reduced 
     under paragraph (7) for fiscal year 2020, increased, subject 
     to subparagraphs (B) and (C) of paragraph (3), and paragraph 
     (5), by the percentage change in the consumer price index for 
     all urban consumers (all items; U.S. city average), for 
     fiscal year 2020.
       ``(B) Fiscal year 2022.--Only with respect to fiscal year 
     2022, the DSH allotment for a State, in lieu of the amount 
     determined under paragraph (3) for the State for that year, 
     shall be equal to the DSH allotment for the State for fiscal 
     year 2021, as determined under subparagraph (A), increased, 
     subject to subparagraphs (B) and (C) of paragraph (3), and 
     paragraph (5), by the percentage change in the consumer price 
     index for all urban consumers (all items; U.S. city average), 
     for fiscal year 2021.
       ``(C) Subsequent fiscal years.--The DSH allotment for a 
     State for fiscal years after fiscal year 2022 shall be 
     calculated under paragraph (3) without regard to this 
     paragraph and paragraph (7).''.

     SEC. 642. REPEAL OF CLASS PROGRAM.

       (a) Repeal.--Title XXXII of the Public Health Service Act 
     (42 U.S.C. 300ll et seq.; relating to the CLASS program) is 
     repealed.
       (b) Conforming Changes.--
       (1) Title VIII of the Patient Protection and Affordable 
     Care Act (Public Law 111-148; 124 Stat. 119, 846-847) is 
     repealed.
       (2) Section 1902(a) of the Social Security Act (42 U.S.C. 
     1396a(a)) is amended--
       (A) by striking paragraphs (81) and (82);
       (B) in paragraph (80), by inserting ``and'' at the end; and
       (C) by redesignating paragraph (83) as paragraph (81).
       (3) Paragraphs (2) and (3) of section 6021(d) of the 
     Deficit Reduction Act of 2005 (42 U.S.C. 1396p note) are 
     amended to read as such paragraphs were in effect on the day 
     before the date of the enactment of section 8002(d) of the 
     Patient Protection and Affordable Care Act (Public Law 111-
     148). Of the funds appropriated by paragraph (3) of such 
     section 6021(d), as amended by the Patient Protection and 
     Affordable Care Act, the unobligated balance is rescinded.

     SEC. 643. COMMISSION ON LONG-TERM CARE.

       (a) Establishment.--There is established a commission to be 
     known as the Commission on Long-Term Care (referred to in 
     this section as the ``Commission'').
       (b) Duties.--
       (1) In general.--The Commission shall develop a plan for 
     the establishment, implementation, and financing of a 
     comprehensive, coordinated, and high-quality system that 
     ensures the availability of long-term services and supports 
     for individuals in need of such services and supports, 
     including elderly individuals, individuals with substantial 
     cognitive or functional limitations, other individuals who 
     require assistance to perform activities of daily living, and 
     individuals desiring to plan for future long-term care needs.
       (2) Existing health care programs.--For purposes of 
     developing the plan described in paragraph (1), the 
     Commission shall provide recommendations for--
       (A) addressing the interaction of a long-term services and 
     support system with existing programs for long-term services 
     and supports, including the Medicare program under title 
     XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) and 
     the Medicaid program under title XIX of the Social Security 
     Act (42 U.S.C. 1396 et seq.), and private long-term care 
     insurance;
       (B) improvements to such health care programs that are 
     necessary for ensuring the availability of long-term services 
     and supports; and
       (C) issues related to workers who provide long-term 
     services and supports, including--
       (i) whether the number of such workers is adequate to 
     provide long-term services and supports to individuals with 
     long-term care needs;
       (ii) workforce development necessary to deliver high-
     quality services to such individuals;
       (iii) development of entities that have the capacity to 
     serve as employers and fiscal agents for workers who provide 
     long-term services and supports in the homes of such 
     individuals; and
       (iv) addressing gaps in Federal and State infrastructure 
     that prevent delivery of high-quality long term services and 
     supports to such individuals.
       (3) Additional considerations.--For purposes of developing 
     the plan described in paragraph (1), the Commission shall 
     take into account projected demographic changes and trends in 
     the population of the United States, as well as the potential 
     for development of new technologies, delivery systems, or 
     other mechanisms to improve the availability and quality of 
     long-term services and supports.
       (4) Consultation.--For purposes of developing the plan 
     described in paragraph (1), the Commission shall consult with 
     the Medicare Payment Advisory Commission, the Medicaid and 
     CHIP Payment and Access Commission, the National Council on 
     Disability, and relevant consumer groups.
       (c) Membership.--
       (1) In general.--The Commission shall be composed of 15 
     members, to be appointed not later than 30 days after the 
     date of enactment of this Act, as follows:
       (A) The President of the United States shall appoint 3 
     members.
       (B) The majority leader of the Senate shall appoint 3 
     members.
       (C) The minority leader of the Senate shall appoint 3 
     members.
       (D) The Speaker of the House of Representatives shall 
     appoint 3 members.
       (E) The minority leader of the House of Representatives 
     shall appoint 3 members.
       (2) Representation.--The membership of the Commission shall 
     include individuals who--
       (A) represent the interests of--
       (i) consumers of long-term services and supports and 
     related insurance products, as well as their representatives;
       (ii) older adults;
       (iii) individuals with cognitive or functional limitations;
       (iv) family caregivers for individuals described in clause 
     (i), (ii), or (iii);
       (v) the health care workforce who directly provide long-
     term services and supports;
       (vi) private long-term care insurance providers;
       (vii) employers;
       (viii) State insurance departments; and
       (ix) State Medicaid agencies;
       (B) have demonstrated experience in dealing with issues 
     related to long-term services and supports, health care 
     policy, and public and private insurance; and
       (C) represent the health care interests and needs of a 
     variety of geographic areas and demographic groups.
       (3) Chairman and vice-chairman.--The Commission shall elect 
     a chairman and vice chairman from among its members.

[[Page 18600]]

       (4) Vacancies.--Any vacancy in the membership of the 
     Commission shall be filled in the manner in which the 
     original appointment was made and shall not affect the power 
     of the remaining members to execute the duties of the 
     Commission.
       (5) Quorum.--A quorum shall consist of 8 members of the 
     Commission, except that 4 members may conduct a hearing under 
     subsection (e)(1).
       (6) Meetings.--The Commission shall meet at the call of its 
     chairman or a majority of its members.
       (7) Compensation and reimbursement of expenses.--
       (A) In general.--To enable the Commission to exercise its 
     powers, functions, and duties, there are authorized to be 
     disbursed by the Senate the actual and necessary expenses of 
     the Commission approved by the chairman and vice chairman, 
     subject to subparagraph (B) and the rules and regulations of 
     the Senate.
       (B) Members.--Members of the Commission are not entitled to 
     receive compensation for service on the Commission. Members 
     may be reimbursed for travel, subsistence, and other 
     necessary expenses incurred in carrying out the duties of the 
     Commission.
       (d) Staff and Ethical Standards.--
       (1) Staff.--The chairman and vice chairman of the 
     Commission may jointly appoint and fix the compensation of 
     staff as they deem necessary, within the guidelines for 
     employees of the Senate and following all applicable rules 
     and employment requirements of the Senate.
       (2) Ethical standards.--Members of the Commission who serve 
     in the House of Representatives shall be governed by the 
     ethics rules and requirements of the House. Members of the 
     Senate who serve on the Commission and staff of the 
     Commission shall comply with the ethics rules of the Senate.
       (e) Powers.--
       (1) Hearings and other activities.--For the purpose of 
     carrying out its duties, the Commission may hold such 
     hearings and undertake such other activities as the 
     Commission determines to be necessary to carry out its 
     duties.
       (2) Studies by general accounting office.--Upon the request 
     of the Commission, the Comptroller General of the United 
     States shall conduct such studies or investigations as the 
     Commission determines to be necessary to carry out its 
     duties.
       (3) Cost estimates by congressional budget office.--Upon 
     the request of the Commission, the Director of the 
     Congressional Budget Office shall provide to the Commission 
     such cost estimates as the Commission determines to be 
     necessary to carry out its duties.
       (4) Detail of federal employees.--Upon the request of the 
     Commission, the head of any Federal agency is authorized to 
     detail, without reimbursement, any of the personnel of such 
     agency to the Commission to assist the Commission in carrying 
     out its duties. Any such detail shall not interrupt or 
     otherwise affect the civil service status or privileges of 
     the Federal employee.
       (5) Technical assistance.--Upon the request of the 
     Commission, the head of a Federal agency shall provide such 
     technical assistance to the Commission as the Commission 
     determines to be necessary to carry out its duties.
       (6) Use of mails.--The Commission may use the United States 
     mails in the same manner and under the same conditions as 
     Federal agencies.
       (7) Obtaining information.--The Commission may secure 
     directly from any Federal agency information necessary to 
     enable it to carry out its duties, if the information may be 
     disclosed under section 552 of title 5, United States Code. 
     Upon request of the Chairman of the Commission, the head of 
     such agency shall furnish such information to the Commission.
       (8) Administrative support services.--Upon the request of 
     the Commission, the Administrator of General Services shall 
     provide to the Commission on a reimbursable basis such 
     administrative support services as the Commission may 
     request.
       (f) Commission Consideration.--
       (1) Approval of report and legislative language.--
       (A) In general.--Not later than 6 months after appointment 
     of the members of the Commission (as described in subsection 
     (c)(1)), the Commission shall vote on a comprehensive and 
     detailed report based on the long-term care plan described in 
     subsection (b)(1) that contains any recommendations or 
     proposals for legislative or administrative action as the 
     Commission deems appropriate, including proposed legislative 
     language to carry out the recommendations or proposals 
     (referred to in this section as the ``Commission bill'').
       (B) Approval by majority of members.--The Commission bill 
     shall require the approval of a majority of the members of 
     the Commission.
       (2) Transmission of commission bill.--
       (A) In general.--If the Commission bill is approved by the 
     Commission pursuant to paragraph (1), then not later than 10 
     days after such approval, the Commission shall submit the 
     Commission bill to the President, the Vice President, the 
     Speaker of the House of Representatives, and the majority and 
     minority Leaders of each House on Congress.
       (B) Commission bill to be made public.--Upon the approval 
     or disapproval of the Commission bill pursuant to paragraph 
     (1), the Commission shall promptly make such proposal, and a 
     record of the vote, available to the public.
       (g) Termination.--The Commission shall terminate 30 days 
     after the vote described in subsection (f)(1).
       (h) Consideration of Commission Recommendations.--If 
     approved by the majority required by subsection (f)(1), the 
     Commission bill that has been submitted pursuant to 
     subsection (f)(2)(A) shall be introduced in the Senate (by 
     request) on the next day on which the Senate is in session by 
     the majority leader of the Senate or by a Member of the 
     Senate designated by the majority leader of the Senate and 
     shall be introduced in the House of Representatives (by 
     request) on the next legislative day by the majority leader 
     of the House or by a member of the House designated by the 
     majority leader of the House.

     SEC. 644. CONSUMER OPERATED AND ORIENTED PLAN PROGRAM 
                   CONTINGENCY FUND.

       (a) Establishment.--The Secretary of Health and Human 
     Services shall establish a fund to be used to provide 
     assistance and oversight to qualified nonprofit health 
     insurance issuers that have been awarded loans or grants 
     under section 1322 of the Patient Protection and Affordable 
     Care Act (42 U.S.C. 18042) prior to the date of enactment of 
     this Act.
       (b) Transfer and Rescission.--
       (1) Transfer.--From the unobligated balance of funds 
     appropriated under section 1322(g) of the Patient Protection 
     and Affordable Care Act (42 U.S.C. 18042(g)), 10 percent of 
     such sums are hereby transferred to the fund established 
     under subsection (a) to remain available until expended.
       (2) Rescission.--Except as provided for in paragraph (1), 
     amounts appropriated under section 1322(g) of the Patient 
     Protection and Affordable Care Act (42 U.S.C. 18042(g)) that 
     are unobligated as of the date of enactment of this Act are 
     rescinded.

             TITLE VII--EXTENSION OF AGRICULTURAL PROGRAMS

     SEC. 701. 1-YEAR EXTENSION OF AGRICULTURAL PROGRAMS.

       (a) Extension.--Except as otherwise provided in this 
     section and amendments made by this section and 
     notwithstanding any other provision of law, the authorities 
     provided by each provision of the Food, Conservation, and 
     Energy Act of 2008 (Public Law 110-246; 122 Stat. 1651) and 
     each amendment made by that Act (and for mandatory programs 
     at such funding levels), as in effect on September 30, 2012, 
     shall continue, and the Secretary of Agriculture shall carry 
     out the authorities, until the later of--
       (1) September 30, 2013; or
       (2) the date specified in the provision of that Act or 
     amendment made by that Act.
       (b) Commodity Programs.--
       (1) In general.--The terms and conditions applicable to a 
     covered commodity or loan commodity (as those terms are 
     defined in section 1001 of the Food, Conservation, and Energy 
     Act of 2008 (7 U.S.C. 8702)) or to peanuts, sugarcane, or 
     sugar beets for the 2012 crop year pursuant to title I of 
     that Act (7 U.S.C. 8702 et seq.) and each amendment made by 
     that title shall be applicable to the 2013 crop year for that 
     covered commodity, loan commodity, peanuts, sugarcane, or 
     sugar beets.
       (2) Milk.--
       (A) In general.--Notwithstanding subsection (a), the 
     Secretary of Agriculture shall carry out the dairy product 
     price support program under section 1501 of the Food, 
     Conservation, and Energy Act of 2008 (7 U.S.C. 8771) through 
     December 31, 2013.
       (B) Milk income loss contract program.--Section 1506 of the 
     Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773) is 
     amended by striking ``2012'' each place it appears in 
     subsections (c)(3), (d)(1), (d)(2), (e)(2)(A), (g), and 
     (h)(1) and inserting ``2013''.
       (3) Suspension of permanent price support authorities.--The 
     provisions of law specified in subsections (a) through (c) of 
     section 1602 of the Food, Conservation, and Energy Act of 
     2008 (7 U.S.C. 8782) shall be suspended--
       (A) for the 2013 crop or production year of a covered 
     commodity (as that term is defined in section 1001 of that 
     Act (7 U.S.C. 8702)), peanuts, sugarcane, and sugar, as 
     appropriate; and
       (B) in the case of milk, through December 31, 2013.
       (c) Conservation Programs.--
       (1) Conservation reserve.--Section 1231(d) of the Food 
     Security Act of 1985 (16 U.S.C. 3831(d)) is amended in the 
     second sentence by striking ``and 2012'' and inserting 
     ``2012, and 2013''.
       (2) Voluntary public access.--Section 1240R of the Food 
     Security Act of 1985 (16 U.S.C. 3839bb-5) is amended by 
     striking subsection (f) and inserting the following:
       ``(f) Funding.--
       ``(1) Fiscal years 2009 through 2012.--Of the funds of the 
     Commodity Credit Corporation, the Secretary shall use to 
     carry out this section, to the maximum extent practicable, 
     $50,000,000 for the period of fiscal years 2009 through 2012.
       ``(2) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this section $10,000,000 for 
     fiscal year 2013.''.
       (d) Supplemental Nutrition Assistance Program.--
       (1) Employment and training program.--Section 16(h)(1)(A) 
     of the Food and Nutrition Act of 2008 (7 U.S.C. 
     2025(h)(1)(A)) is amended by inserting ``, except that for 
     fiscal year 2013, the amount shall be $79,000,000'' before 
     the period at the end.
       (2) Nutrition education.--Section 28(d)(1) of the Food and 
     Nutrition Act of 2008 (7 U.S.C. 2036a(d)(1)) is amended--
       (A) in subparagraph (A), by striking ``and'' after the 
     semicolon at the end; and
       (B) by striking subparagraph (B) and inserting the 
     following:
       ``(B) for fiscal year 2012, $388,000,000;
       ``(C) for fiscal year 2013, $285,000,000;

[[Page 18601]]

       ``(D) for fiscal year 2014, $401,000,000;
       ``(E) for fiscal year 2015, $407,000,000; and
       ``(F) for fiscal year 2016 and each subsequent fiscal year, 
     the applicable amount during the preceding fiscal year, as 
     adjusted to reflect any increases for the 12-month period 
     ending the preceding June 30 in the Consumer Price Index for 
     All Urban Consumers published by the Bureau of Labor 
     Statistics of the Department of Labor.''.
       (e) Research Programs.--
       (1) Organic agriculture research and extension 
     initiative.--Section 1672B(f) of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 5925b(f)) is 
     amended--
       (A) in the heading of paragraph (1), by striking ``In 
     general'' and inserting ``Mandatory funding for fiscal years 
     2009 through 2012'';
       (B) in the heading of paragraph (2), by striking 
     ``Additional funding'' and inserting ``Discretionary funding 
     for fiscal years 2009 through 2012''; and
       (C) by adding at the end the following:
       ``(3) Fiscal year 2013.--There is authorized to be 
     appropriated to carry out this section $25,000,000 for fiscal 
     year 2013.''.
       (2) Specialty crop research initiative.--Section 412(h) of 
     the Agricultural Research, Extension, and Education Reform 
     Act of 1998 (7 U.S.C. 7632(h)) is amended--
       (A) in the heading of paragraph (1), by striking ``In 
     general'' and inserting ``Mandatory funding for fiscal years 
     2008 through 2012'';
       (B) in the heading of paragraph (2), by inserting ``for 
     fiscal years 2008 through 2012'' after ``Appropriations'';
       (C) by redesignating paragraphs (3) and (4) as paragraphs 
     (4) and (5), respectively; and
       (D) by inserting after paragraph (2) the following:
       ``(3) Fiscal year 2013.--There is authorized to be 
     appropriated to carry out this section $100,000,000 for 
     fiscal year 2013.''.
       (3) Beginning farmer and rancher development program.--
     Section 7405(h) of the Farm Security and Rural Investment Act 
     of 2002 (7 U.S.C. 3319f(h)) is amended--
       (A) in the heading of paragraph (1), by striking ``In 
     general'' and inserting ``Mandatory funding for fiscal years 
     2009 through 2012'';
       (B) in the heading of paragraph (2), by inserting ``for 
     fiscal years 2008 through 2012'' after ``Appropriations''; 
     and
       (C) by adding at the end the following:
       ``(3) Fiscal year 2013.--There is authorized to be 
     appropriated to carry out this section $30,000,000 for fiscal 
     year 2013.''.
       (f) Energy Programs.--
       (1) Biobased markets program.--Section 9002(h) of the Farm 
     Security and Rural Investment Act of 2002 (7 U.S.C. 8102(h)) 
     is amended in paragraph (2) by striking ``2012'' and 
     inserting ``2013''.
       (2) Biorefinery assistance.--Section 9003(h)(2) of the Farm 
     Security and Rural Investment Act of 2002 (7 U.S.C. 
     8103(h)(2)) is amended by striking ``2012'' and inserting 
     ``2013''.
       (3) Repowering assistance.--Section 9004(d)(2) of the Farm 
     Security and Rural Investment Act of 2002 (7 U.S.C. 
     8104(d)(2)) is amended by striking ``2012'' and inserting 
     ``2013''.
       (4) Bioenergy program for advanced biofuels.--Section 
     9005(g)(2) of the Farm Security and Rural Investment Act of 
     2002 (7 U.S.C. 8105(g)(2)) is amended by striking ``2012'' 
     and inserting ``2013''.
       (5) Biodiesel fuel education program.--Section 9006 of the 
     Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
     8106) is amended by striking subsection (d) and inserting the 
     following:
       ``(d) Funding.--
       ``(1) Fiscal years 2009 through 2012.--Of the funds of the 
     Commodity Credit Corporation, the Secretary shall use to 
     carry out this section $1,000,000 for each of fiscal years 
     2008 through 2012.
       ``(2) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this section $1,000,000 for 
     fiscal year 2013.''.
       (6) Rural energy for america program.--Section 9007(g)(3) 
     of the Farm Security and Rural Investment Act of 2002 (7 
     U.S.C. 8107(g)(3)) is amended by striking ``2012'' and 
     inserting ``2013''.
       (7) Biomass research and development.--Section 9008(h)(2) 
     of the Farm Security and Rural Investment Act of 2002 (7 
     U.S.C. 8108(h)(2)) is amended by striking ``2012'' and 
     inserting ``2013''.
       (8) Rural energy self-sufficiency initiative.--Section 
     9009(d) of the Farm Security and Rural Investment Act of 2002 
     (7 U.S.C. 8109(d)) is amended by striking ``2012'' and 
     inserting ``2013''.
       (9) Feedstock flexibility program for bioenergy 
     producers.--Section 9010(b) of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 8110(b)) is amended in 
     paragraphs (1)(A) and (2)(A) by striking ``2012'' each place 
     it appears and inserting ``2013''.
       (10) Biomass crop assistance program.--Section 9011(f) of 
     the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
     8111(f)) is amended--
       (A) by striking ``(f) Funding.--Of the funds'' and 
     inserting ``(f) Funding.--
       ``(1) Fiscal years 2008 through 2012.--Of the funds''; and
       (B) adding at the end the following:
       ``(2) Fiscal year 2013.--
       ``(A) In general.--There is authorized to be appropriated 
     to carry out this section $20,000,000 for fiscal year 2013.
       ``(B) Multiyear contracts.--For each multiyear contract 
     entered into by the Secretary during a fiscal year under this 
     paragraph, the Secretary shall ensure that sufficient funds 
     are obligated from the amounts appropriated for that fiscal 
     year to fully cover all payments required by the contract for 
     all years of the contract.''.
       (11) Forest biomass for energy.--Section 9012(d) of the 
     Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
     8112(d)) is amended by striking ``2012'' and inserting 
     ``2013''.
       (12) Community wood energy program.--Section 9013(e) of the 
     Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
     8113(e)) is amended by striking ``2012'' and inserting 
     ``2013''.
       (g) Horticulture and Organic Agriculture Programs.--
       (1) Farmers market promotion program.--Section 6(e) of the 
     Farmer-to-Consumer Direct Marketing Act of 1976 (7 U.S.C. 
     3005(e)) is amended--
       (A) in the heading of paragraph (1), by striking ``In 
     general'' and inserting ``Fiscal years 2008 through 2012'';
       (B) by redesignating paragraphs (2), (3), and (4) as 
     paragraphs (3), (4), and (5), respectively;
       (C) by inserting after paragraph (1) the following:
       ``(2) Fiscal year 2013.--There is authorized to be 
     appropriated to carry out this section $10,000,000 for fiscal 
     year 2013.'';
       (D) in paragraph (3) (as so redesignated), by striking 
     ``paragraph (1)'' and inserting ``paragraph (1) or (2)''; and
       (E) in paragraph (5) (as so redesignated), by striking 
     ``paragraph (2)'' and inserting ``paragraph (3)''.
       (2) National clean plant network.--Section 10202(e) of the 
     Food, Conservation, and Energy Act of 2008 (7 U.S.C. 7761(e)) 
     is amended--
       (A) by striking ``Of the funds'' and inserting the 
     following:
       ``(1) Fiscal years 2009 through 2012.--Of the funds''; and
       (B) by adding at the end the following:
       ``(2) Fiscal year 2013.--There is authorized to be 
     appropriated to carry out the Program $5,000,000 for fiscal 
     year 2013.''.
       (3) National organic certification cost-share program.--
     Section 10606 of the Farm Security and Rural Investment Act 
     of 2002 (7 U.S.C. 6523) is amended--
       (A) in subsection (a), by striking ``Of funds of the 
     Commodity Credit Corporation, the Secretary of Agriculture 
     (acting through the Agricultural Marketing Service) shall use 
     $22,000,000 for fiscal year 2008, to remain available until 
     expended, to'' and inserting ``The Secretary of Agriculture 
     (acting through the Agricultural Marketing Service) shall''; 
     and
       (B) by adding at the end the following:
       ``(d) Funding.--
       ``(1) Mandatory funding for fiscal years 2008 through 
     2012.--Of the funds of the Commodity Credit Corporation, the 
     Secretary shall make available to carry out this section 
     $22,000,000 for the period of fiscal years 2008 through 2012.
       ``(2) Fiscal year 2013.--There is authorized to be 
     appropriated to carry out this section $22,000,000 for fiscal 
     year 2013, to remain available until expended.''.
       (4) Organic production and market data initiatives.--
     Section 7407(d) of the Farm Security and Rural Investment Act 
     of 2002 (7 U.S.C. 5925c(d)) is amended--
       (A) in the heading of paragraph (1), by striking ``In 
     general'' and inserting ``Mandatory funding through fiscal 
     year 2012'';
       (B) in the heading of paragraph (2), by striking 
     ``Additional funding'' and inserting ``Discretionary funding 
     for fiscal years 2008 through 2012''; and
       (C) by adding at the end the following:
       ``(3) Fiscal year 2013.--There is authorized to be 
     appropriated to carry out this section $5,000,000, to remain 
     available until expended.''.
       (h) Outreach and Technical Assistance for Socially 
     Disadvantaged Farmers or Ranchers.--Section 2501(a)(4) of the 
     Food, Agriculture, Conservation, and Trade Act of 1990 (7 
     U.S.C. 2279(a)(4)) is amended--
       (1) in the heading of subparagraph (A), by striking ``In 
     general'' and inserting ``Fiscal years 2009 through 2012'';
       (2) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (C) and (D), respectively;
       (3) by inserting after subparagraph (A) the following:
       ``(B) Fiscal year 2013.--There is authorized to be 
     appropriated to carry out this section $20,000,000 for fiscal 
     year 2013.'';
       (4) in subparagraph (C) (as so redesignated), by striking 
     ``subparagraph (A)'' and inserting ``subparagraph (A) or 
     (B)''; and
       (5) in subparagraph (D) (as so redesignated), by striking 
     ``subparagraph (A)'' and inserting ``subparagraph (A) or 
     (B)''.
       (i) Exceptions.--
       (1) In general.--Subsection (a) does not apply with respect 
     to mandatory funding provided by programs authorized by 
     provisions of law amended by subsections (d) through (h).
       (2) Conservation.--Subsection (a) does not apply with 
     respect to the programs specified in paragraphs (3)(B), (4), 
     (6), and (7) of section 1241(a) of the Food Security Act of 
     1985 (16 U.S.C. 3841(a)), relating to the conservation 
     stewardship program, farmland protection program, 
     environmental quality incentives program, and wildlife 
     habitat incentives program, for which program authority was 
     extended through fiscal year 2014 by section 716 of Public 
     Law 112-55 (125 Stat. 582).

[[Page 18602]]

       (3) Trade.--Subsection (a) does not apply with respect to 
     the following provisions of law:
       (A) Section 3206 of the Food, Conservation, and Energy Act 
     of 2008 (7 U.S.C. 1726c) relating to the use of Commodity 
     Credit Corporation funds to support local and regional food 
     aid procurement projects.
       (B) Section 3107(l)(1) of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 1736o-1(l)(1)) relating to 
     the use of Commodity Credit Corporation funds to carry out 
     the McGovern-Dole International Food for Education and Child 
     Nutrition Program.
       (4) Survey of foods purchased by school food authorities.--
     Subsection (a) does not apply with respect to section 4307 of 
     the Food, Conservation, and Energy Act of 2008 (Public Law 
     110-246; 122 Stat. 1893) relating to the use of Commodity 
     Credit Corporation funds for a survey and report regarding 
     foods purchased by school food authorities.
       (5) Rural development.--Subsection (a) does not apply with 
     respect to the following provisions of law:
       (A) Section 379E(d)(1) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2008s(d)(1)), relating to funding 
     of the rural microentrepreneur assistance program.
       (B) Section 6029 of the Food, Conservation, and Energy Act 
     of 2008 (Public Law 110-246; 122 Stat. 1955) relating to 
     funding of pending rural development loan and grant 
     applications.
       (C) Section 231(b)(7)(A) of the Agricultural Risk 
     Protection Act of 2000 (7 U.S.C. 1632a(b)(7)(A)), relating to 
     funding of value-added agricultural market development 
     program grants.
       (D) Section 375(e)(6)(B) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2008j(e)(6)(B)) relating to the use 
     of Commodity Credit Corporation funds for the National Sheep 
     Industry Improvement Center.
       (6) Market loss assistance for asparagus producers.--
     Subsection (a) does not apply with respect to section 
     10404(d) of the Food, Conservation, and Energy Act of 2008 
     (Public Law 110-246; 122 Stat. 2112).
       (7) Supplemental agricultural disaster assistance.--
     Subsection (a) does not apply with respect to section 531 of 
     the Federal Crop Insurance Act (7 U.S.C. 1531) and title IX 
     of the Trade Act of 1974 (19 U.S.C. 2497 et seq.) relating to 
     the provision of supplemental agricultural disaster 
     assistance.
       (8) Pigford claims.--Subsection (a) does not apply with 
     respect to section 14012 of the Food, Conservation, and 
     Energy Act of 2008 (Public Law 110-246; 122 Stat. 2209) 
     relating to determination on the merits of Pigford claims.
       (9) Heartland, habitat, harvest, and horticulture act of 
     2008.--Subsection (a) does not apply with respect to title XV 
     of the Food, Conservation, and Energy Act of 2008 (Public Law 
     110-246; 122 Stat. 2246), and amendments made by that title, 
     relating to the provision of supplemental agricultural 
     disaster assistance under title IX of the Trade Act of 1974 
     (19 U.S.C. 2497 et seq.), certain revenue and tax provisions, 
     and certain trade benefits and other matters.
       (j) Effective Date.--Except as otherwise provided in this 
     section, this section and the amendments made by this section 
     take effect on the earlier of--
       (1) the date of the enactment of this Act; or
       (2) September 30, 2012.

     SEC. 702. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.

       (a) In General.--Section 531 of the Federal Crop Insurance 
     Act (7 U.S.C. 1531) is amended--
       (1) in subsection (a)(5)--
       (A) in the matter preceding clause (i), by striking the 
     first ``under''; and
       (B) by redesignating clauses (i) through (iii) as 
     subparagraphs (A), (B), and (C), respectively, and indenting 
     appropriately;
       (2) in subsection (c)--
       (A) in paragraph (1), by striking ``use such sums as are 
     necessary from the Trust Fund to''; and
       (B) by adding at the end the following:
       ``(3) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $80,000,000 
     for each of fiscal years 2012 and 2013.'';
       (3) in subsection (d)--
       (A) in paragraph (2), by striking ``use such sums as are 
     necessary from the Trust Fund to''; and
       (B) by adding at the end the following:
       ``(7) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $400,000,000 
     for each of fiscal years 2012 and 2013.'';
       (4) in subsection (e)--
       (A) in paragraph (1), by striking ``use up to $50,000,000 
     per year from the Trust Fund to''; and
       (B) by adding at the end the following:
       ``(4) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $50,000,000 
     for each of fiscal years 2012 and 2013.'';
       (5) in subsection (f)--
       (A) in paragraph (2)(A), by striking ``use such sums as are 
     necessary from the Trust Fund to''; and
       (B) by adding at the end the following:
       ``(5) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $20,000,000 
     for each of fiscal years 2012 and 2013.''; and
       (6) in subsection (i), by inserting ``or, in the case of 
     subsections (c) through (f), September 30, 2013'' after 
     ``2011,''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on October 1, 2012.

                  TITLE VIII--MISCELLANEOUS PROVISIONS

     SEC. 801. STRATEGIC DELIVERY SYSTEMS.

       (a) In General.--Paragraph 3 of section 495(c) of title 10, 
     United States Code,, as added by section 1035 of the National 
     Defense Authorization Act for Fiscal Year 2013, is amended--
       (1) by striking ``that'' before ``the Russian Federation'' 
     and inserting ``whether''; and
       (2) by inserting ``strategic'' before ``arms control 
     obligations''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect as if included in the enactment of the 
     National Defense Authorization Act for Fiscal Year 2013.

     SEC. 802. NO COST OF LIVING ADJUSTMENT IN PAY OF MEMBERS OF 
                   CONGRESS.

       Notwithstanding any other provision of law, no adjustment 
     shall be made under section 601(a) of the Legislative 
     Reorganization Act of 1946 (2 U.S.C. 31) (relating to cost of 
     living adjustments for Members of Congress) during fiscal 
     year 2013.

                      TITLE IX--BUDGET PROVISIONS

               Subtitle A--Modifications of Sequestration

     SEC. 901. TREATMENT OF SEQUESTER.

       (a) Adjustment.--Section 251A(3) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 is amended--
       (1) in subparagraph (C), by striking ``and'' after the 
     semicolon;
       (2) in subparagraph (D), by striking the period and 
     inserting`` ; and''; and
       (3) by inserting at the end the following:
       ``(E) for fiscal year 2013, reducing the amount calculated 
     under subparagraphs (A) through (D) by $24,000,000,000.''.
       (b) After Session Sequester.--Notwithstanding any other 
     provision of law, the fiscal year 2013 spending reductions 
     required by section 251(a)(1) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 shall be evaluated and 
     implemented on March 27, 2013.
       (c) Postponement of Budget Control Act Sequester for Fiscal 
     Year 2013.--Section 251A of the Balanced Budget and Emergency 
     Deficit Control Act of 1985 is amended--
       (1) in paragraph (4), by striking ``January 2, 2013'' and 
     inserting ``March 1, 2013''; and
       (2) in paragraph (7)(A), by striking ``January 2, 2013'' 
     and inserting ``March 1, 2013''.
       (d) Additional Adjustments.--
       (1) Section 251.--Paragraphs (2) and (3) of section 251(c) 
     of the Balanced Budget and Emergency Deficit Control Act of 
     1985 are amended to read as follows:
       ``(2) for fiscal year 2013--
       ``(A) for the security category, as defined in section 
     250(c)(4)(B), $684,000,000,000 in budget authority; and
       ``(B) for the nonsecurity category, as defined in section 
     250(c)(4)(A), $359,000,000,000 in budget authority;
       ``(3) for fiscal year 2014--
       ``(A) for the security category, $552,000,000,000 in budget 
     authority; and
       ``(B) for the nonsecurity category, $506,000,000,000 in 
     budget authority;''.
       (e) 2013 Sequester.--On March 1, 2013, the President shall 
     order a sequestration for fiscal year 2013 pursuant to 
     section 251A of the Balanced Budget and Emergency Deficit 
     Control Act of 1985, as amended by this section, pursuant to 
     which, only for the purposes of the calculation in sections 
     251A(5)(A), 251A(6)(A), and 251A(7)(A), section 251(c)(2) 
     shall be applied as if it read as follows:
       ``(2) For fiscal year 2013--
       ``(A) for the security category, $544,000,000,000 in budget 
     authority; and
       ``(B) for the nonsecurity category, $499,000,000,000 in 
     budget authority;''.

     SEC. 902. AMOUNTS IN APPLICABLE RETIREMENT PLANS MAY BE 
                   TRANSFERRED TO DESIGNATED ROTH ACCOUNTS WITHOUT 
                   DISTRIBUTION.

       (a) In General.--Section 402A(c)(4) is amended by adding at 
     the end the following:
       ``(E) Special rule for certain transfers.--In the case of 
     an applicable retirement plan which includes a qualified Roth 
     contribution program--
       ``(i) the plan may allow an individual to elect to have the 
     plan transfer any amount not otherwise distributable under 
     the plan to a designated Roth account maintained for the 
     benefit of the individual,
       ``(ii) such transfer shall be treated as a distribution to 
     which this paragraph applies which was contributed in a 
     qualified rollover contribution (within the meaning of 
     section 408A(e)) to such account, and
       ``(iii) the plan shall not be treated as violating the 
     provisions of section 401(k)(2)(B)(i), 403(b)(7)(A)(i), 
     403(b)(11), or 457(d)(1)(A), or of section 8433 of title 5, 
     United States Code, solely by reason of such transfer.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to transfers after December 31, 2012, in taxable 
     years ending after such date.

                     Subtitle B--Budgetary Effects

     SEC. 911. BUDGETARY EFFECTS.

       (a) PAYGO Scorecard.--The budgetary effects of this Act 
     shall not be entered on either PAYGO scorecard maintained 
     pursuant to section 4(d) of the Statutory Pay-As-You-Go Act 
     of 2010.
       (b) Senate PAYGO Scorecard.--The budgetary effects of this 
     Act shall not be entered on any PAYGO scorecard maintained 
     for purposes of section 201 of S. Con. Res. 21 (110th 
     Congress).
       Amend the title so as to read: ``An Act entitled the 
     `American Taxpayer Relief Act of 2012'.''.


                            Motion to Concur

  The SPEAKER pro tempore. The Clerk will designate the motion.

[[Page 18603]]

  The text of the motion is as follows:

       0Mr. Camp moves that the House concur in the Senate 
     amendments to H.R. 8.

  The SPEAKER pro tempore. Pursuant to House Resolution 844, the motion 
shall be debatable for 1 hour, equally divided and controlled by the 
chair and ranking minority member of the Committee on Ways and Means.
  The gentleman from Michigan (Mr. Camp) and the gentleman from 
Michigan (Mr. Levin) each will control 30 minutes.
  The Chair recognizes the gentleman from Michigan (Mr. Camp).


                             General Leave

  Mr. CAMP. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days in which to revise and extend their remarks and 
to include extraneous material on H.R. 8.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Michigan?
  There was no objection.
  Mr. CAMP. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise today to urge what a colleague from Georgia 
called a legacy vote--making permanent the tax cuts Republicans enacted 
back in 2001 and 2003. I couldn't agree more, and let me say why: 
because we're making permanent tax policies Republicans originally 
crafted.
  Now back then, despite having a majority in the House, a majority in 
the Senate, and a Republican in the White House, those policies were 
only temporary. That's because Democrats refused to join Republicans in 
providing tax relief for working families. Well, after more than a 
decade of criticizing these tax cuts, Democrats are finally joining 
with Republicans in making these tax cuts permanent. Republicans and 
the American people are getting something really important--permanent 
tax relief.
  As big as that is, and it's only the first step when it comes to 
taxes, this legislation settles the level of revenue Washington should 
bring in. Next, we need to make the Tax Code simpler and fairer for 
families and small businesses, and we need to pursue comprehensive and 
fundamental tax reform to create the jobs we need and to make American 
businesses and workers competitive in the global marketplace. Simply 
put, the Tax Code is a nightmare. It's too complex, too time-consuming, 
and too costly. About 60 percent of individual taxpayers have to hire 
others to do their tax returns because the code is too complicated. As 
a result, if tax compliance were an industry, it would be one of the 
largest in the United States and would consume 6.1 billion hours, the 
equivalent of more than 3 million full-time workers.
  And yes, it's too costly. In 2008 alone, taxpayers spent $163 billion 
complying with the individual and corporate income tax rules. Add to 
that the fact that the U.S. has the highest corporate tax rate in the 
OECD and an outdated system of taxation, and it's not too difficult to 
imagine why many don't view America as an attractive place to invest 
and hire.
  Nothing about the bill we're considering tonight changes any of those 
realities. That's why the Ways and Means Committee will pursue 
comprehensive tax reform in the next Congress. So by making Republican 
tax cuts permanent, we're one step closer to comprehensive tax reform 
that will help strengthen our economy and create more and higher 
paychecks for American workers.
  I urge my colleagues to support this bill and get us one step closer 
to tax reform.
  I reserve the balance of my time.
  Mr. LEVIN. Mr. Speaker, I yield myself such time as I may consume. 
This is a bipartisan bill, and I will try to keep it within that spirit 
to the extent possible.
  As we are here today on January 1, hours away from Americans 
returning to work, markets reopening around the world, and all eyes 
focusing on whether this institution can govern, this legislation 
allows us to get done what we need to get done.

                              {time}  2150

  This bill is vital for our Nation's economic well-being and, I want 
to emphasize, for its standing as the world's most important economy. 
It is vital for 114 million middle class families whose tax cuts are 
made permanent. It's vital for 2 million unemployed American workers 
who need continuation of their insurance while they continue to look 
for work.
  It is vital for 30 million middle-income Americans who otherwise 
would have been hit by the alternative minimum tax. And it's vital for 
25, and I emphasize this, 25 million working families and students who 
benefit from the Child Tax Credit, the Earned Income Tax Credit and the 
American Opportunity Tax Credit, which helps families pay for college.
  And it's vital for physicians and millions of their patients who 
would have been hurt by drastic cuts in Medicare reimbursement rates. 
It's also vital for businesses, through an extension of important tax 
provisions such as the R&D credit, and also renewable energy incentives 
that must continue in this great country of ours, and bonus 
depreciation to encourage business investments.
  But I want to emphasize this, somewhat in contrast to what our 
chairman has said: this legislation breaks the iron barrier that for 
far too long has prevented additional tax revenues from the very 
wealthiest. It raises $620 billion in revenue by achieving the 
President's goal of asking the wealthiest 2 percent of Americans to pay 
more, while protecting 98 percent of families. That's right, that's 
what it does. And 97 percent--I want to emphasize this, contrary to 
propaganda coming from the other side, 97 percent of small businesses 
from any tax increase.
  And, lastly--and this needs to be emphasized especially in view, Mr. 
Chairman, of your comments--this package is vital for future deficit 
reduction efforts, setting the stage for a balanced approach from here 
on out by delaying sequestration through 1-1 revenue to spending cuts.
  Yesterday, President Obama again said he is committed to deficit 
reduction, but he emphasized several times, and I quote:

       We've got to do this in a balanced, responsible way with 
     additional revenues as well as spending cuts, so I urge its 
     passage.

  This bill sets the important precedent I mentioned in terms of 
additional revenues as well as spending cuts. The time is urgent. The 
time is now. We should support this legislation.
  I reserve the balance of my time.
  Mr. CAMP. At this time, I yield 3 minutes to the gentleman from 
California (Mr. Issa), the distinguished chairman of the Oversight and 
Government Reform Committee.
  Mr. ISSA. Mr. Speaker, I'd like to be speaking for this bill, but I 
can't. In the 12 years, almost to the day, that I've served in this 
body, I've voted for every tax cut, every tax cut. And I remember many 
of my colleagues, many of them friends to my right here, who, each time 
we voted for them said, where is the PAYGO? Where is the pay-for?
  Well, Mr. Speaker, there's $4 trillion of new debt and deficit and 
there's no pay-for, and there's no anticipation of a pay-for.
  In the last night, or the last 2 days, of a Congress, to say that 2 
months from now a new Congress is going to do what we're not doing here 
today is not something I can bring myself to do.
  I would like to vote for this because I do vote for lower taxes. I 
want Americans to have lower taxes. But the other day, in conference, 
one of my colleagues pointed out that if, in fact, you're spending the 
money, you're taxing our future generation.
  We are taxing $1.2 trillion next year. We are taxing $1.2 trillion. 
We won't collect it, but we are taxing $1.2 trillion of deficit.
  The chairman of the Ways and Means Committee, Mr. Camp, rightfully so 
said we're also not simplifying the Tax Code. We're not making it 
better or fairer. We're not getting rid of the NASCAR loophole. We're 
not getting rid of the electric motor scooter low-speed loophole. We're 
not getting rid of a whole lot of tax things that are here.
  But most importantly, we're not taking things that the President 
himself said he would be for, like getting the calculation of chained 
CPI, of the consumer price index for Social Security

[[Page 18604]]

and the Federal workforce and pensions right, which, would, in fact, 
reduce the deficit going forward.
  So because of what we're not doing, I cannot believe that this tax 
cut will, in fact, be followed with a spending cut to offset any part 
of the $4 trillion we're putting on the backs of future generations.
  So I thank all of you who will vote for it. I cannot bring myself to 
vote for it tonight.
  Mr. LEVIN. I yield myself 15 seconds.
  We Democrats sat on Ways and Means, time after time, when Republicans 
passed tax cuts and never brought $1 to the table to pay for it. They 
thought that that was the way to promote economic growth. How wrong 
they were.
  It's now my privilege to yield 1 minute to a person who has the title 
``leader,'' but who has been so much more than a titular leader, who 
has valiantly led our efforts, and we owe to Nancy Pelosi a real debt 
of gratitude for our being where we are today.
  With real pleasure, I yield 1 minute to our distinguished leader, the 
gentlewoman from California (Ms. Pelosi).
  Ms. PELOSI. I thank the gentleman for yielding. I thank him for his 
great leadership as our ranking member on the Ways and Means Committee 
and for bringing the clarity to our thinking on this important subject 
that we are dealing with this evening.
  My colleagues, many of us this morning began the day with the Vice 
President of the United States coming to the Democratic Caucus and 
speaking to us about legislation that passed the Senate last night 89-
8. That is absolutely historic. It was legislation that he helped 
negotiate, working with the Republican and Democratic leaders in the 
United States Senate.
  It was a remarkable accomplishment because, as we all know, while we 
share the same goals, we sometimes have different paths to achieving 
them; and reconciling our differences was a monumental task, especially 
with the time growing short.
  So we appreciate the leadership of the Vice President. We appreciate 
the leadership of the Republican and Democratic leaders in the Senate, 
and we thank Speaker Boehner for bringing this legislation to the 
floor.
  Hopefully, we can duplicate the strong bipartisan vote that the 
legislation received in the United States Senate. And why is that 
important?
  It's important because the American people told us in the election 
they wanted us to work together. They have their differences too. They 
understand disagreement. They also understand compromise, and that is 
what this legislation represents.
  I listened attentively to the previous speaker who said he was voting 
for the bill for what was not in it. That's an interesting approach. We 
can judge all of the legislation that we vote on for what is in it or 
vote against it for what is not in it. But at some point you strike a 
balance. You balance the equities.
  Where do you come out in terms of making a choice?

                              {time}  2200

  I hope we will reflect the will and heed the call of the American 
people to work together and follow the lead of the Senate with strong 
bipartisan support. What do they want us to do? What are their 
priorities? They want us to create jobs. They want us to grow the 
economy. They want us to invest in education. They want us to reduce 
the deficit. They want us to strengthen the middle class. And that is 
what this legislation does. It does so in a way that is not complete 
but is an important first step.
  We talked much about the gloom and doom of what would happen if we 
went over the cliff. Well, let's talk instead about what happens if we 
don't go over the cliff. And I believe that we will not, seeing the 
vote on the rule this evening. I believe that we will heed the American 
people and come together with a strong vote.
  By voting for this legislation and passing it in a strong way we'll 
increase the confidence of consumers, of the markets, of businesses, of 
employers to hire more. We will extend unemployment insurance to people 
who have lost their jobs through no fault of their own. This is very, 
very important not only to those individuals, but to our economy, 
because this is money that is spent immediately injecting demand into 
the economy, creating jobs.
  We'll extend permanent tax relief for the middle class--more than 98 
percent of the American taxpayers, more than 97 percent of America's 
small businesses. We will support our middle class and strengthen it by 
supporting the child tax credits, tax credits for higher education, the 
American opportunity tax credit, the earned income tax credit, and the 
like.
  Our distinguished ranking member went through some of the provisions, 
but it's important to see them in light of what they mean to America's 
working families. By voting for this agreement, we will demonstrate 
that we have listened to the American people and we have heeded their 
call, once again, to work together in a bipartisan way.
  I want to salute President Obama. He campaigned on strengthening the 
middle class--I think all of us probably did--and this is one way for 
us to fulfill that promise. I don't know any piece of legislation that 
I've ever voted for that did everything that I thought it should do, 
but this is a very, very strong first step as we go into the new year. 
Let us send a message to the American people that, again, while this 
bill doesn't accomplish all that we need to do to grow the economy, 
reduce the deficit, and strengthen the middle class, it is a good way 
for us to have a happy start to a new year by taking this first step.
  I hope that as, again, you balance the equities, the pros and cons of 
this legislation, that you will weigh heavily in favor of the message 
that it sends to the kitchen tables of America about the respect we 
have for them in meeting their needs, meeting their challenges, 
honoring their aspirations. This great middle class is the backbone of 
our democracy. Let us all be very patriotic tonight and support our 
middle class and support our democracy. Vote ``aye'' on this strong 
bipartisan legislation which passed 89-8 in the United States Senate. 
Let's step up to the plate to do that in the House of Representatives.
  I urge my colleagues to vote ``aye.''
  Mr. CAMP. Mr. Speaker, I yield myself 45 seconds.
  This is the first step. And now that we have permanently settled how 
much revenue the government is going to take out of the economy, we can 
move on to next steps. We can and will pursue comprehensive tax reform 
this year, in 2013, and next steps. We need to address the fundamental 
driver of our deficits and debt, and that is out-of-control spending.
  I urge support for this bill, and I reserve the balance of my time.
  Mr. LEVIN. I yield myself 15 seconds.
  I just don't want the chairman's statement that this settles 
permanently how much revenue will be made available. The President has 
made clear there has to be a balanced approach, and no one should be 
misled into thinking otherwise, no one.
  I yield 2 minutes to the distinguished gentleman from New York (Mr. 
Rangel).
  Mr. RANGEL. This is no profile in courage for me to be voting for 
this bill. It reminds me of the joke we use to have on Lennox Avenue, 
where someone stopped hitting you on the head with a hammer and you're 
supposed to say, ``Thank you so much for the relief.''
  We created this monster. We're the ones that have said--at least the 
Congress has said in the majority in the House--do what you have to do 
but, for God's sake, don't ask the top 2 percent of the wealthiest 
people in this civilized country to pay their fair share. And while 
you're thinking about taxing people, why don't you start talking about 
cutting people off from unemployment compensation? Why don't you think 
about not providing so much for the sick and the aged? Why don't you 
start privatizing these things?
  This was not the America that I knew when I came to the Congress. 
This was something that a handful of people from nowhere came here and 
started preaching that we had to destroy Big Government and the 
vulnerable who had no lobbyists, who had no

[[Page 18605]]

one to come to, were saved by us, by responsible people who came 
together and said, basically, Have you lost your mind? What are you 
doing? How can you go home and tell the people this is what you 
created?
  And so we paused and common sense has prevailed, and we can at least 
go back home and say, Not now, but they're coming again.
  They have all types of words that they're using, like the debt 
ceiling, but all it means is that they're coming after us and they're 
coming after the President. They'll be talking about sequestration. 
What will it mean? Cutting benefits from people that need them the 
most.
  And with all due regards to the other body for once doing what the 
House could not get together in doing, we never even saw how they paid 
for some of these things, things that we would have handled differently 
when we had to pay for those doctors who work very hard for the 
Medicare. And people say, Well, how are you paying for them? And 
everyone had amnesia in not knowing. Well, after it's over, they'll get 
paid, but this Congress will make certain that the providers of health 
care are not penalized for this Congress doing the right thing.
  Mr. CAMP. I yield 30 seconds to the distinguished gentleman from 
Texas (Mr. Gohmert).
  Mr. GOHMERT. I just wanted to thank so many on the other side after 
all these years for finally acknowledging publicly that 98 percent of 
the Bush tax cuts helped the middle class.
  Mr. LEVIN. I will yield to my temptation to respond, and I will now 
yield 2 minutes to another distinguished gentleman, a member of our 
committee, Mr. Neal of Massachusetts.
  Mr. NEAL. Thank you, Mr. Levin.
  At this late hour, let me point something out and take exception to 
what Chairman Camp said at the outset of his remarks. We're here 
tonight because, despite what the gentleman from Texas just said as 
well, you can't cut taxes by $2.3 trillion over 12 years and fight two 
wars.
  When you heard the argument before that was so popular, ``It's the 
people's money; it's going to promote economic growth,'' the most 
anemic economic growth America's had since Hoover became President, do 
you know what's the people's responsibility? Those veterans' hospitals. 
We have 1.7 million new veterans and 45,000 wounded. Do you know what 
the Republican whip said during those crucial years? Cutting taxes in a 
time of war is patriotic. So much for sacrifice for all of us.
  When you look back into how we got to this problem--revenue at 15 
percent of GDP--that's an Eisenhower figure headed toward Truman. We've 
argued in this town about 19 to 21 percent for the better part of 30 
years. Fifteen percent of revenue with GDP, 12 years of tax cuts.
  Now, this represents a reasonable step forward tonight. And I want to 
say with some personal satisfaction that I'm delighted with what we 
have finally done to put to rest the alternative minimum tax.

                              {time}  2210

  A million families in Massachusetts were threatened with alternative 
minimum tax. It was the responsible position tonight. But I want to 
give you a number. You know what these patches have cost us? $2.2 
trillion over the life of AMT. The theology that we heard that was so 
popular in this institution--tax cuts pay for themselves--you can't 
find a mainstream economist today in America that will acknowledge that 
problem.
  This is a reasonable step forward. Vote for this measure, and let's 
get on to fundamental tax reform.
  Mr. CAMP. I reserve the balance of my time.
  Mr. LEVIN. I yield 2 minutes to the gentleman from Oregon (Mr. 
Blumenauer).
  Mr. BLUMENAUER. This evening, we're expected to vote on an item that 
has many commendable and important items. Unfortunately, too many are 
of short duration, much is left out, and most importantly we're losing 
a real opportunity for reform.
  The SGR is left in a year to torment medical providers again. The 
AMT, I'm pleased, is patched--I appreciate the advocacy of my friend, 
Mr. Neal. But, in fact, we all know that it should, at a minimum, be 
reformed, if not repealed.
  We have a body blow to the alternative energy industry, and somehow 
it's given a year's reprieve, but it's not what they need or what they 
deserve. And because we refuse, at a moment of opportunity, to deal 
meaningfully with the national debt--and remember, the budget from my 
Republican friends, authored by my colleague, Mr. Ryan, would have 
required $6 trillion headroom in the debt ceiling.
  Now, we cannot continue to have the world's largest and most 
expensive military by far, the lowest taxes of any of the major 
economies, the most expensive and inefficient health care, and continue 
to allow our country's infrastructure to fall apart while America ages 
and grows.
  This proposal represents absolutely the least we could have done 
under these circumstances and, tragically, institutionalizes for the 
next Congress the madness around here of short-term frenzy around self-
inflicted deadlines that have no reality to them. That drives the 
American public crazy, and with good reason.
  Not only can we do better, I would suggest that we must do better.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. LEVIN. I yield the gentleman an additional 20 seconds.
  Mr. BLUMENAUER. It's probably going to pass with overwhelming 
bipartisan support. So be it. I can only hope that, in that spirit of 
taking a risk on both sides of the aisle--and both parties and the 
administration--that the administration and the new Congress gets 
serious about reform and delivering services more cost-effectively in 
ways, ironically, that people on both sides of the aisle agree with 
that are absent in this proposal.
  Mr. CAMP. I continue to reserve the balance of my time.
  Mr. LEVIN. I now yield 2 minutes to another member of the Ways and 
Means Committee, the gentleman from New Jersey (Mr. Pascrell).
  Mr. PASCRELL. The American people are the real winners here tonight, 
not anyone who navigates these halls. Let's make that clear.
  We don't have a perfect bill in front of us--in fact, we've never had 
a perfect bill in front of us--but this is a bill which will provide 
much needed certainty to millions of middle class American families 
that their income taxes will not increase.
  Since the recession in 2008, there has been a 25 percent increase in 
the number of families below the poverty line in my home State of New 
Jersey. I'm sure we'll see more as a result of the devastation of 
Hurricane Sandy. Lest we forget before tomorrow that we need to respond 
to that storm as all of us responded to the other catastrophes over the 
past 10 to 15 years. We should not have exceptions, particularly from 
those States who are donor States. If you want to get into nickels and 
dimes, then let's get into nickels and dimes. We've done our share and 
will continue to do it. We want everybody to step up to the plate.
  We've been able to help families in need by extending the earned 
income tax credit to 563,000 New Jersey taxpayers, who will earn an 
average of $2,169 more because of the program. We have also helped 
460,000 New Jersey families take advantage of the child tax credit. 
Many of you, regardless of which State you come from, your constituents 
have taken advantage of that great program. Almost 400,000 have been 
able to use the education tax credits.
  Lest we forget what we've done on the alternative minimum tax, the 
chairman of the Ways and Means Committee will tell you how many times 
alternative minimum tax comes up, and yet we did nothing about it, 
pushing it patch to patch, year to year. In just one county in my 
district, 87 percent of the families have been affected.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. LEVIN. I yield the gentleman an additional 30 seconds.
  Mr. PASCRELL. I ask to have a ``yea'' vote on this legislation so we 
can all be proud and be happy for a

[[Page 18606]]

change when we wake up in the morning.
  Mr. CAMP. I continue to reserve the balance of my time.
  Mr. LEVIN. I now yield 2 minutes to the gentlewoman from Pennsylvania 
(Ms. Schwartz), our colleague-to-be on Ways and Means.
  Ms. SCHWARTZ. I rise this evening in strong support of the Jobs 
Protection and Recession Prevention Act of 2012. By passing this bill, 
Congress provides economic security and certainty for middle class 
families.
  This legislation, which passed the Senate with overwhelming 
bipartisan support, permanently extends tax cuts for 99 percent of 
American families and small businesses, it protects seniors' access to 
doctors, it expands affordability of college for millions of young 
people, it makes vital investments that build economic growth and new 
jobs in this country, and it averts the fiscal cliff and the harmful 
economic consequences that might have resulted.
  As we close out this Congress, we've reached resolution on a major 
issue facing this Congress and our Nation: fairer tax policy for our 
families and our businesses.
  There's more work to do. In the next Congress, my guess is that it 
will be just as difficult to reach bipartisan solutions, but that 
doesn't mean it can't be done. Tonight's vote, I hope, demonstrates 
that in fact it can, and it benefits American families and American 
businesses and America's future.
  Mr. CAMP. I continue to reserve the balance of my time.
  Mr. LEVIN. I now yield 1 minute to the gentleman from Virginia (Mr. 
Moran).
  Mr. MORAN. Mr. Speaker, tonight we will pass 83 provisions that 
remove Federal revenue, totaling $3.9 trillion, all of it deficit 
financed. Now, we will add $64 billion more this year to reducing the 
deficit. So if we have a $1.3 trillion annual deficit this year, it 
will bring it down to $1.24 trillion.
  Now, many of us feel--certainly on this side--that the deficit 
doesn't matter, but it does matter because we have another deficit: a 
deficit in investment in the education of our children, an investment 
in the training and skills of our workforce and the fiscal 
infrastructure of our country. We will have none of those resources to 
make that investment after we make this vote tonight.
  The problem is we set up three more fiscal cliffs. We're going to 
have to deal with the debt ceiling, we're going to have to deal with 
the continuing resolution expiration, and we're going to have to deal 
with the sequester. All that's left is spending cuts.
  So the only question we have to ask ourselves is, what programs do we 
cut and how deep do we cut them? We're going to look back on this night 
and regret it, notwithstanding the fact that 95 percent of us 
apparently will vote for it.
  Mr. CAMP. Mr. Speaker, I would advise the gentleman that I am 
prepared to close.
  Mr. LEVIN. I now yield 1 minute to the gentleman from New York (Mr. 
Engel).
  Mr. ENGEL. Mr. Speaker, I rise today to support this bill because 
essentially we have two choices here: We either vote for this bill and 
we prevent us from going over the cliff, or we go over the cliff. That 
would certainly wreak havoc with the market and with everything else.

                              {time}  2220

  But it never should have come to this. We should have been 
negotiating and passing a balanced bill. The American people are really 
fed up with what they see in the dysfunctional Congress. Harry Truman 
back in 1948 when he was running for President campaigned against the 
80th, and he called it the ``do nothing'' 80th Congress. That ``do 
nothing'' Congress passed three times as many bills as the 112th 
Congress did. And so here we are at the last minute, and we are rushing 
to pass this bill. It never should have happened this way.
  I commend President Obama and Vice President Biden for protecting the 
middle class with this and for doing the best that they can; but, my 
friends and my colleagues, we are going to have to work to meet in a 
sensible center. We are going to have to not play these brinksmanship 
games. The American people don't want it.
  President Obama won reelection campaigning for the middle class. This 
keeps those priorities, and we ought to support it.
  Mr. LEVIN. I now yield 2 minutes to Danny Davis, our colleague from 
Illinois who is soon rejoining us on Ways and Means.
  Mr. DAVIS of Illinois. Mr. Speaker, I have never seen a compromise 
where everybody got everything that they wanted or liked everything 
that they got. I certainly don't like everything that I see in this 
bill, and I certainly didn't get everything that I wanted. But I do 
like the fact that senior citizens can go to the doctors because 
they're being paid a reasonable rate. I don't like the fact that some 
of the health programs in my communities in disproportionate hospitals 
all across the country are being cut.
  I just got two phone calls a few minutes ago from two constituents, 
one from Oak Park, Illinois, and one from Westchester. They both did 
all that they could do to convince me to vote against this bill. And 
after listening to them, I thanked them, but then I told them, do you 
know that 320,000 people in our State relied upon unemployment 
insurance benefits last year? I don't know how I could face those 
individuals with no hope, no possibility, and no idea that they're 
going to have a check in the mail. But when I go to church on Sunday, I 
know that I will see people with the assurance that pretty soon an 
unemployment check is in the mail. And that's one of the reasons that, 
yes, I will vote for this bill, because it's good legislation. People 
need it right now--not next year, not next month, and not next week.
  Mr. LEVIN. I now, with pleasure, yield 3 minutes to another member of 
our leadership, the gentleman from South Carolina (Mr. Clyburn).
  Mr. CLYBURN. Mr. Speaker, I thank the gentleman for yielding me the 
time.
  Mr. Speaker, it's tempting to say it's about time the House put aside 
extreme partisanship and work together on compromise to address the 
Nation's most pressing issues. But, in reality, it is far past time 
that we put aside extreme partisanship. Throughout the entirety of the 
112th Congress, we have seen narrow political interests placed ahead of 
the public interest.
  So here we are on New Year's night, with the clock running out on the 
very existence of this Congress, finally considering bipartisan 
legislation to provide middle class tax cuts, require the wealthiest 
to, once again, pay their fair share so we can grow the economy, create 
jobs and protect the most vulnerable in our society. It is indeed well 
past time we got about the people's business.
  Mr. Speaker, in 2011, I served on the Biden group of both Republican 
and Democratic Representatives and Senators who worked with the Vice 
President on our Nation's fiscal issues. We made good progress in those 
talks until our Republican friends walked away, fearing the wrath of 
the Tea Party. I also served on the bipartisan Joint Select Committee 
on Deficit Reduction, the so-called supercommittee that spent countless 
hours discussing these issues in detail. It was very clear that the 
elements of a fair and balanced fiscal plan were achievable. But at the 
end of the process, the Republican leaders refused to compromise, and 
the supercommittee failed.
  So here we are. While this is not a perfect bill, and I have serious 
concerns about some of the cuts it contains, it does contain the 
element of fairness.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. LEVIN. I yield the gentleman 1 additional minute.
  Mr. CLYBURN. This bill protects the middle class and working people 
with a more progressive Tax Code than we've had in a very long time. 
And this bill prevents the meat-axe approach of budget cuts that could 
do more severe damage to our national defense and important domestic 
priorities.
  Mr. Speaker, I hope that the partisanship of the 112th Congress will 
end this week with the end of the 112th Congress, and I am hopeful that 
the 113th Congress can work together toward honorable compromises to 
get the

[[Page 18607]]

people's business done. I urge a ``yes'' vote.
  Mr. LEVIN. We are going to vote soon, but first we want to hear from 
our whip, the distinguished gentleman from Maryland, who has worked so 
hard on these issues for decades.
  I yield 3 minutes to the gentleman from Maryland (Mr. Hoyer).
  Mr. HOYER. I thank the gentleman for his leadership, and I thank Mr. 
Camp for his leadership.
  There is, of course, a time for partisanship. There is a time for 
making our political points, and that time has been, and it will be 
again. That time is not tonight.
  All of us have traveled throughout this country; and we have heard 
our constituents, our neighbors and our friends say, please, don't have 
us go over the cliff. They're not sure exactly what ``going over the 
cliff'' means, but they intuitively and deeply feel that it will not be 
good to go over that cliff. And so we come to this floor tonight with 
almost everyone who has spoken saying this bill is not perfect, and, of 
course, that observation could be applied to any and all bills that we 
consider in this House.
  Compromise is not the art of perfection. By its very definition, a 
compromise contains elements that neither side likes. But it also 
contains pieces both sides can embrace. What we will do tonight is not 
only adopt a piece of legislation that will give literally tens of 
millions of Americans the assurance that their taxes will not be 
raised; millions of small businesses assurance that their taxes will 
not be raised; millions of people who, through no fault of their own, 
are struggling to find a job and trying to keep bread on their table 
the assurance that we will be there to help.
  Tonight, we will come together and do something else. With 37\1/2\ 
hours left to go in the 112th Congress, we will display to all of our 
constituents that, yes, in the final analysis, we have the ability to 
come together, to act not as Republicans, not as Democrats, but as 
Americans, 435 of us sent here by our neighbors and friends to try to 
do the best we can, realizing that there are 435 points of view that 
sit in this Chamber, and that what we strive to do is to reconcile 
those differences to create consensus, for without consensus, democracy 
cannot work.
  There will be time for partisan differences. There will be time for 
partisan confrontation in the days in the 113th Congress. But this 
night, as we end the 112th Congress, as we have strived mightily to 
come to an agreement with great difficulty and realizing that all of us 
have very strong feelings, I severely regret that this is not a big, 
bold, and balanced plan.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. LEVIN. I yield the gentleman an additional 1 minute.

                              {time}  2230

  Mr. HOYER. We had an opportunity to reach such an agreement in a 
bipartisan fashion, and we will not reach a big, bold, and balanced 
plan without bipartisanship because the decisions we'll have to make 
will be too difficult not to be done in a bipartisan fashion.
  This night, we take a positive step, and the people watching us, Mr. 
Speaker, on television tonight and reading about their Congress 
tomorrow are seeing that we were able to act, not perfectly, but in a 
bipartisan fashion to try to take a step towards fiscal responsibility, 
fiscal stability, and, yes, caring for those who most need our help in 
this country.
  I urge my colleagues, as the leader of my party in this Congress 
urged us, to support this legislation, not as a Democrat, not as a 
Republican, but as an American who understands that our people believe 
that action is necessary. And I would urge all of us as we close this 
debate to do so in a way that brings us together, not drives us apart; 
that reaches out to the best in us, not to the partisan in us.
  Mr. Speaker, it is time for this Congress to come together, address 
this issue, act together, and pass this bill.
  Mr. CAMP. Mr. Speaker, I yield 4 minutes to the distinguished 
gentleman from California (Mr. Royce).
  Mr. ROYCE. Mr. Speaker, I think what gets lost in the 30-second sound 
bites on the fiscal cliff is the real cliff facing this country in the 
form of a massive wave of entitlement obligations.
  Government accounting doesn't tell the whole story. The actual 
liabilities of the Federal Government, the present value of Medicare, 
Medicaid, and Social Security programs already exceed $86 trillion. By 
2040, our entitlement obligations will consume all of the average 
postwar projected tax revenue. We have to come to grips with that.
  That means every dollar collected by the IRS would go to pay Social 
Security, Medicare, or Medicaid, without reforms. We will have to go 
out and borrow to pay for other spending should that happen. It is 
unfortunate that the President wasn't willing to engage on this front, 
and it is unfortunate that the Senate leader continues to deny the 
crisis.
  On the day of new year's resolutions, let's hope Senator Reid and 
President Obama resolve to be honest about the crisis our Nation faces 
with the coming wave of entitlement obligations, making these programs 
solvent, and reining in these trillion dollar deficits, which every 
economist will tell you is unsustainable. This must be done in 2013.
  Without the legislation before us today, without this bill, millions 
of Americans would see their tax rates go up, and that would provide a 
systemic shock to our already weak economy. This plan that we're about 
to vote on locks in a reduced tax rate for middle class families who 
otherwise would have seen $3,000 in higher taxes on average. It 
permanently holds down the death tax, which impacts so many small 
businesses. It permanently protects the middle class from the 
alternative minimum tax, and it adjusts that for inflation.
  The plan does away with a new entitlement program created in 
ObamaCare, and it makes permanent a 15 percent capital gains and 
dividends rate for income up to $400,000 for singles, $450,000 for 
married couples, and a 20 percent rate for those above. That rate would 
have gone to 39.6 percent for dividends. That would have been very 
injurious for our capital markets. That would be very injurious for 
economic growth if we allowed that to happen.
  Tax relief has been achieved. Now is the time for the President to 
work with Congress to address government overspending, the underlying 
problem.
  Mr. LEVIN. If the gentleman from Michigan is ready to close, I'll do 
the same and yield myself the balance of my time.
  I regret the last statements. It is not correct to say that the 
President has not been interested in deficit reduction. That is not 
true. It was the Republican leadership in this House that walked away 
from a big package. So I think it is troublesome that you come here 
apparently saying you're going to vote for this bill by launching an 
unfair, untrue representation of what's been going on.
  I want it to be very clear, because my guess is that the chairman 
will talk again that there has been a permanent level of revenue set by 
this bill. That is not correct. If that's an effort to get votes on 
your side, I want the record to be clear.
  I'm going to close by reading from the President's statement of 
yesterday:

       I want to make clear that any agreement we have to deal 
     with these automatic spending cuts that are being threatened 
     for next month, those also have to be balanced, because, 
     remember, my principle has always been let's do things in a 
     balanced, responsible way.
       The same is true for any future deficit agreement. 
     Obviously, we're going to have to do more to reduce our debt 
     and our deficit. I'm willing to do more--

  He already has done substantial.

       --but it's going to have to be balanced. We're going to 
     have to do it in a balanced way.

  And then he talks about the need to address Medicare.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. CAMP. I yield myself such time as I may consume.
  We've heard some talk about what does the fiscal cliff mean, and I 
would say that I agree with my friend from Maryland that if we didn't 
address the fiscal cliff issue, every single American

[[Page 18608]]

would see a tax increase, and it would be a big tax increase. It would 
be the biggest tax increase in the history of the country. That's why 
it's so important we're here tonight acting in a permanent way.
  And I would say also to my friend from Michigan, he is correct, this 
is a permanent tax policy. These are permanent tax provisions we're 
putting in this bill that permanently sets the baseline. It permanently 
sets how much money the government can take out of the economy. Because 
of this, this is the largest tax cut in American history.
  I think that's helpful, because the best way to get out of our debt 
and deficit is to grow our economy. We can do that through 
comprehensive and fundamental tax reform, and this is just the first 
step to getting to the ability to strengthen our economy and create the 
jobs we so badly need.
  We've had years of anemic economic growth. We have projected anemic 
economic growth in 2013. It is so important that we try to create jobs 
and grow the economy, and we can do that through comprehensive pro-
growth tax reform that lowers rates, broadens the base, and simplifies 
a Tax Code that is far too complex.

                              {time}  2240

  As I said in my opening statement, the Tax Code is a nightmare--and 
it is--and it's getting almost late enough to have a nightmare 
ourselves.
  Let me just say that we not only need to grow the economy, but we 
also need to address the fundamental causes of our debts and deficits, 
and that's out-of-control spending--obligations that we have not got 
the financial wherewithal to meet. We need to strengthen those programs 
and make sure that they're sustainable for the long term, but we also 
need to address the problem that is out-of-control spending.
  So this is the first step--permanent tax policy that then sets the 
stage for comprehensive and fundamental tax reform--and then addressing 
out-of-control spending. This will be several steps. This is an 
important one, and this is a critical one for the future of the 
country. I urge a ``yes'' vote.
  I yield back the balance of my time.
  Mr. YOUNG of Florida. Mr. Speaker, I rise today to discuss the 
devastating across-the-board sequestration cuts set to take place 
across the entire federal government tomorrow--January 2nd. Half of 
those cuts would come from the Department of Defense and our national 
security programs.
  The Department of Defense, industry, and the Congressional Defense 
Committees, have repeatedly and consistently warned of the consequences 
of letting sequestration take place. If allowed to happen, the impact 
to the Department of Defense would be a reduction of 8.2 percent or 
$54.6 billion from the fiscal year 2013 budget. The total sequestration 
reduction for Defense through fiscal year 2021 amounts to roughly $492 
billion--almost half a trillion dollars.
  With military pay and personnel costs exempt from the cuts, the 
actual cut to all other accounts increases to 9.4 percent. Even though 
the Department of Defense has some limited flexibility to allocate 
sequestration cuts in the operating accounts, a computer will cut all 
procurement and research accounts proportionally--which will directly 
impact more than 2,500 programs and projects. The impact on our 
national security and readiness will be severe.
  Base operating budgets will be cut, negatively impacting readiness. 
Training could be significantly reduced, resulting in unprepared troops 
and higher risk to those who deploy. Civilian personnel will certainly 
be affected, possibly resulting in hiring freezes and unpaid furloughs. 
Fewer weapon systems will be bought, which starts a vicious circle of 
rises in unit prices for the remaining weapons. Other major weapon 
systems will be reduced or terminated, and current contracts may have 
to be terminated or renegotiated, resulting in additional costs to the 
government and a loss of favorable contract terms in some cases. 
Procurement and Depot Maintenance schedules will be severely impacted, 
which is enormously disruptive, especially in shipbuilding and 
maintenance when future deployments rely on maintaining schedules.
  Earlier this year, Secretary of Defense Leon Panetta testified that 
the impact of sequestration on the Department of Defense alone would 
drive up our nation's unemployment rate by a full percent. Jobs will be 
lost but more importantly, infrastructure and manufacturing 
capabilities critical to our national security will be lost. Already 
prime contractors have notified their suppliers and subcontractors that 
programs are on hold. This has left thousands of small businesses with 
no choice but to close their doors and lay off workers as work orders 
have dried up.
  Our nation's manufacturing base relies upon these workers and their 
special skills. We rely on these small businesses to supply critical 
components for important weapons systems and platforms.
  Mr. Speaker, as you know, the impact of sequestration is very real 
and is very imminent. Just consider that if sequestration remains in 
place for its full nine years, our nation will be left with the 
smallest ground force since 1940, the smallest number of ships since 
1915, and the smallest Air Force in history.
  When we talk about the fiscal cliff, these across the board cuts to 
our defense budget will result in not only an economic fiscal cliff, 
but of greatest concern to me, a cliff off which our national security 
will fall. This will impact our readiness, our ability to defend our 
nation, and our ability to ensure the safety of our all volunteer force 
as they operate around the world.
  I urge my colleagues in the House to do everything we can to ensure 
that sequestration does not become a stark reality tomorrow. Failing to 
take action will cause irreversible harm to our nation's security and 
violate our Constitutional responsibility to ``provide for the common 
defense.''
  Mr. THORNBERRY. Mr. Speaker, it was the issue of taxes that led to me 
running for Congress in the first place. The question of how much of 
your money the government forces from us is central to the relationship 
of the individual with government and to the freedom of the individual. 
And in the past several years through calls, emails, and personal 
meetings, I have heard from many of my constituents about the necessity 
of having stability in the tax code.
  Making the current tax rates permanent for the vast majority of 
Americans, as this bill does, is a major accomplishment. No longer will 
the threat of major tax increases because of an expiring law hang over 
the heads of taxpayers. Providing tax certainty for individuals and 
businesses has long been needed and will allow them to plan and make 
decisions. Hopefully, it will help the economy grow. And finally having 
an answer on the death tax, although I prefer to abolish it entirely, 
is also critical for every farmer, rancher, and small business person 
in the country.
  The clearest reason to vote against this bill is because of what it 
does not do--limit spending. Too much spending, along with low economic 
growth, is the reason that our debt is mounting and that our children's 
future is in peril. This bill is a missed opportunity to take 
meaningful action to deal with that problem, and I supported efforts to 
have significant spending cuts included in this measure. But it is not 
our last opportunity.
  It is always possible to justify voting against a bill for what is 
not included in it. One must go further and ask, ``What happens if this 
bill is defeated? Will the result be better or worse for the country?'' 
We also have to make a judgment on what is possible with the current 
cast of characters that the American people have elected to office. It 
does no good to imagine some ideal measure that could never pass the 
Democratically-controlled Senate or that President Barack Obama would 
never sign into law. I am a conservative, and I am also a realist.
  The answers to those questions lead me to conclude that it is better 
to approve this bill at this time, understanding that we must use the 
next few weeks of discussion about the debt limit to find a way to 
significantly reduce spending and begin to get our economic house in 
order. House Republicans do not have to accomplish everything in one 
bill, but time is running out for us to get spending under control. In 
coming weeks, we will need to consider every tool at our disposal to 
convince the White House and the Senate on the imperative of cutting 
spending.
  Of course, there are provisions in this bill with which I disagree. 
For example, extending some of the tax credits from the stimulus bill 
and continuing to pay unemployment for an additional year discourage 
work and encourage further dependency on government. But they total 
about $100 billion out of a $4 trillion bill; the rest of the ``cost'' 
is due to extending tax provisions that have been in place for more 
than a decade.
  Stepping back and looking at the whole picture, it seems clear to me 
that preventing a tax increase for most Americans and making all tax 
rates permanent is an important step for families all across the 
country and for the economy as a whole.
  Other provisions contained in this bill are important to the people 
in my district. One

[[Page 18609]]

would extend the current farm bill for the remainder of the fiscal 
year, allowing farmers and their bankers to make decisions on planting. 
That provision also prevents the price of milk from doubling this week. 
Another section prevents the 27% cut in Medicare reimbursement to 
doctors, which would have made it very difficult for Medicare patients 
to find a physician to treat them.
  Approving this measure is just a step. Next, we must do whatever is 
required to control spending, especially spending in mandatory programs 
that constitute nearly two-thirds of the budget. I continue to support 
comprehensive tax reform, which can ease the pain to taxpayers, help us 
be more competitive in the world, and give our economy a real boost. We 
do not have to do all of these things in one bill--and it would be a 
mistake to try--but we must do them for the sake of our country and our 
future.
  Mr. HOLT. Mr. Speaker, as the Congress lurches from self-imposed 
crisis to self-imposed crisis, it is easy to understand why members of 
the public shake their heads in disgust at the inability of the 
government to do the important work of America to help Americans.
  The negotiators of this deal should never have agreed to bargain 
under a hostage-taking deadline. Of course, for long term economic 
stability and growth we must have greater balance between revenue and 
expenditures. That means Congress should pay close attention day to 
day, month to month, to revenue and to spending and should bring them 
more into line. That should always be true, though, not just whenever 
someone says there is a crisis.
  And say what you will, there is no good reason for a crisis now. The 
deadline is artificial. This ``fiscal cliff' is the result of a deal 
agreed to in August 2011 when some congressional members who dislike 
government tried to prevent the U.S. from paying our debts, and the 
White House and Congressional leaders allowed them to hold the 
government hostage and then to impose automatic spending cuts and tax 
increases in the most thoughtless, ham-handed way. And the negotiators 
should never have negotiated with hostage takers, or after the debt-
ceiling confrontation was past, should never have let the hostage-
takers demands live on.
  As I see it, the big problem with the fiscal package before us today 
is that it was debated and negotiated on the terms set by the hostage 
takers in 2011. Instead of talking about what our government needs to 
do to put people to work, to reduce unemployment, to educate Americans, 
to rebuild our roads and bridges, to stimulate vibrant and innovative 
industry, to tend to the nourishment, the housing, the cultural well-
being of all Americans--and then doing those things--Congress and 
Administration have spent several months neglecting all the important 
work in front of us--drought relief, elementary and secondary education 
act, violence against women act, bridge repair, better transportation, 
better communication, reliable mail delivery, etc. etc. and instead 
focusing on such things as whether the marginal tax rate should be 36 
percent or 39.6 percent for income earned above $250,000 or $450,000.
  Why should the President, why should the Democratic leadership in 
Congress, have agreed to negotiate with hostage takers under contrived, 
media-fueled deadlines. Why should the President, why should the 
Democratic leadership in Congress, have accepted the inane premise of 
the Tea Party and the Peterson Institute that our nation is defined by 
its debt and that we are in effect a poor, debtor nation and that the 
government is helpless in the face of that debt. There is no good 
answer to a bad question.
  The premise of the deal before us is false, and the Democratic 
negotiators have been trying hard to find a good outcome based on that 
false premise. In fact, we do have a long term problem with the debt. 
We should work to correct it, but also we should recognize that it is 
long term. Meanwhile we have some immediate problems--stubborn 
unemployment, a sluggish economy, crumbling infrastructure, and 
millions of Americans in need of housing and food. We should not allow 
our concern for the debt to paralyze our government, and thus prevent 
action on the immediate, critical problems affecting our people in the 
here and now. The blatant, sad irony is that dealing aggressively with 
those immediate problems--the very problems whose solutions are being 
pushed aside by the artificial, self-imposed debt crisis--also would be 
the best way of dealing with the long term debt problem. It would be 
the best way of generating the economic activity and growth necessary 
to put our people back to work and our debt in its place.
  This deal was done in the wrong way. The postponed crisis will 
reappear with the debt crisis and sequestration and tax increases in 
March, and the President will be in a weaker, not stronger, position to 
deal with the crisis then. However, I do not want to make the situation 
worse by weakening the President's hand and weakening the economy by 
allowing the government so to speak to ``fall off the cliff', so with 
great reluctance I will support this bill.
  Mr. LANGEVIN. Mr. Speaker, I rise in support of H.R. 8, the American 
Taxpayer Relief Act of 2012. It goes without saying that this is no 
one's idea of a perfect bill. However, the American people are counting 
on Congress to act to prevent a tax increase on the middle class, just 
as our economy is starting to recover.
  President Obama, Vice President Biden, and Senate Democrats and 
Republicans have done what the voters sent us here to do: find a 
balanced approach to help get our fiscal house in order. House 
Democrats have been ready to do our part, and I am glad that our 
Republican colleagues have finally allowed this legislation to come to 
the Floor so that we can ensure our nation does not feel the harmful 
effects of the fiscal cliff. It should not have taken this long, and it 
should not have been this hard.
  While I have serious concerns about certain portions of the 
agreement, I am very pleased that--first and foremost--middle class 
families will be protected from a tax rate increase. Not only will we 
permanently extend middle-class tax cuts, but this deal will also 
extend the child tax credit and the earned income tax credit, and it 
permanently ensures that the Alternative Minimum Tax will not hit 
middle-class families.
  Very importantly, this package also includes a critical extension of 
unemployment benefits for those still struggling to find work, and I am 
grateful for the efforts of Senator Jack Reed and others to ensure this 
provision was part of the final deal.
  I have called many times in recent months for the expiration of Bush-
era tax rates on income over $250,000, and I am disappointed that this 
agreement does not meet that goal. However, while the income threshold 
of $450,000 is higher than I would have liked, it is nonetheless a 
major step forward that the very wealthiest Americans will begin to pay 
their fair share under this bill. Democrats have already agreed to over 
a trillion dollars in spending cuts, and it is critical that some 
significant revenue is finally being put on the table.
  Of particular interest to Rhode Island's wind energy industry, this 
bill extends the Production Tax Credit and the Investment Tax Credit 
for renewable energy, which will mean critical jobs for our state. It 
also provides our doctors with another year of relief from Medicare 
reimbursement cuts.
  One thing many of my colleagues and I made clear to House leaders was 
that we would not support a deal that cut Medicare or Social Security 
benefits for our seniors, and I am glad that they listened to us.
  Overall, this agreement sets the standard for a balanced approach 
that demands shared sacrifice through both spending cuts and revenue 
increases. I have long advocated for such an approach, and I am hopeful 
that this will be the model for our deficit reduction efforts in coming 
years.
  Unfortunately, this deal is no ``grand bargain,'' and it sets up yet 
another potential crisis mere weeks from now by pushing off a solution 
to sequestration for two months, right at the same time we will need to 
increase the debt limit and renew government funding. No one wants to 
relive this fight, and I would have much preferred to resolve these 
perennial issues all at once.
  Nonetheless, it is time to act. We have an obligation to move forward 
with a balanced compromise, and I believe that we have achieved that. I 
urge my colleagues to support this agreement, and I hope that we can 
begin the 113th Congress with a renewed commitment to address our 
nation's many complex challenges with seriousness and cooperation.
  Ms. JENKINS. Mr. Speaker, as the sponsor of the bill to extend 
Section 45G of Title 26 in the IRS code, I rise today to clarify the 
impact that the extension of this provision within the text of H.R. 8 
will have on short line railroads.
  As a Certified Public Accountant, I would like to iterate that in IRS 
Code section (1)(2) under 45G, it is the intent of the law that 
assignments of railroad track miles for purposes of calculating a 
railroad track maintenance tax credit for the taxable year that ended 
on December 31, 2012 may be completed in 2013, due to the late 
extension of the 45G credit in this legislation.
  This belated extension should not be construed as an attempt by 
Congress to eliminate the ability of short line railroads to use 
subsection (b)(2), but rather to preserve that ability for tax year 
2012.
  Ms. EDDIE BERNICE JOHNSON of Texas. Mr. Speaker, recently the Senate 
came together on a bipartisan basis to address our

[[Page 18610]]

looming fiscal crisis. I appreciate the statesmanship of President 
Obama and Vice President Biden to make every effort to avoid the most 
harmful effects of the ``fiscal cliff.''
  Last night's vote in the House was one of the hardest votes I have 
cast in my tenure in Congress. The agreement was not a perfect 
proposal, but it avoided serious damage to our national economy. One of 
my concerns about the measure is that it did not generate nearly enough 
revenue. I am afraid that the haste and the lack of detailed effort 
will ultimately translate to a series of tax hikes and spending cuts in 
future years that will negatively impact the middle class and the poor.
  I have serious reservations about any attempt to cut benefits in 
Social Security, Medicare, and Medicaid. I am committed to evaluating 
the impact of the funding used to pay for the Sustainable Growth Rate 
(SGR or ``doc fix''). I strongly oppose cuts to services for diabetes, 
end stage renal disease, and other illnesses disproportionately 
impacting my constituents. As a non-practicing registered nurse, I know 
how devastating these cuts would be for medical services in underserved 
communities.
  Another worthy program that is very important to my constituents is 
the Qualifying Individual (QI) program. The program allows Medicaid to 
pay the Medicare Part B premiums for low-income Medicare beneficiaries 
with incomes between 120 percent and 135 percent of poverty. Under 
current law, QI expired December 31, 2012. The agreement extends the QI 
program until December 31, 2013.
  Mr. Speaker, I have five major hospitals in my congressional district 
that not only serve my constituents, but the entire North Texas 
population. The measure states that qualifying low-volume hospitals 
receive add-on payments based on the number of Medicare discharges. To 
qualify, the hospital must have less than 1,600 Medicare discharges and 
be 15 miles or greater from the nearest like hospital. This provision 
extends the payment adjustment until December 31, 2013. The Medicare 
Dependent Hospital (MDH) program in the bill provides enhanced 
reimbursement to support rural health infrastructure and to support 
small rural hospitals for which Medicare patients make up a significant 
percentage of inpatient days or discharges. This greater dependence on 
Medicare may make these hospitals more financially vulnerable to 
prospective payment, and the MDH designation is designed to reduce this 
risk. This provision extends the MDH program until October 1, 2013.
  I am pleased to see that the Senate approved a one-year extension of 
unemployment insurance benefits, providing necessary support for those 
looking to return to work as the economy recovers. I am also pleased to 
learn that deep cuts for many important programs that support the most 
vulnerable and provide pathways to prosperity for millions of 
Americans, including Head Start and WIC, were delayed. I would have 
preferred to see a long term extensions to these critical provisions.
  Mr. Speaker, as I mentioned before, I do not agree with many of the 
details of the compromise, but I cast my vote for the bill for the 
greater national interest. I will continue to mitigate any negative 
impact of cuts on communities of color and other vulnerable populations 
in the ongoing negotiations on sequestration and the debt ceiling.
  We must ultimately find a way not to fall into a deep economic 
crisis, and to further strengthen our middle class. I hope all of my 
colleagues as well as the Leadership continues to work on these issues 
and that it ultimately reflect solid bipartisan collaboration for the 
incoming 113th Congress.
  The SPEAKER pro tempore. All time for debate has expired.
  Pursuant to House Resolution 844, the previous question is ordered.
  The question is on the motion by the gentleman from Michigan (Mr. 
Camp).
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.


                             Recorded Vote

  Mr. LEVIN. Mr. Speaker, I demand a recorded vote.
  A recorded vote was ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, this 15-
minute vote on the motion to concur will be followed by a 5-minute vote 
on the motion to suspend the rules and pass Senate Joint Resolution 44, 
if ordered.
  The vote was taken by electronic device, and there were--ayes 257, 
noes 167, not voting 8, as follows:

                             [Roll No. 659]

                               AYES--257

     Ackerman
     Alexander
     Altmire
     Andrews
     Baca
     Baldwin
     Barber
     Barletta
     Bass (CA)
     Bass (NH)
     Benishek
     Berkley
     Berman
     Biggert
     Bilbray
     Bishop (GA)
     Bishop (NY)
     Boehner
     Bonamici
     Bono Mack
     Boren
     Boswell
     Brady (PA)
     Brady (TX)
     Braley (IA)
     Brown (FL)
     Buchanan
     Butterfield
     Calvert
     Camp
     Capps
     Capuano
     Carnahan
     Carney
     Carson (IN)
     Castor (FL)
     Chandler
     Chu
     Cicilline
     Clarke (MI)
     Clarke (NY)
     Clay
     Cleaver
     Clyburn
     Coble
     Cohen
     Cole
     Connolly (VA)
     Conyers
     Costa
     Costello
     Courtney
     Crenshaw
     Critz
     Crowley
     Cuellar
     Cummings
     Curson (MI)
     Davis (CA)
     Davis (IL)
     DeGette
     DelBene
     Denham
     Dent
     Deutch
     Diaz-Balart
     Dicks
     Dingell
     Doggett
     Dold
     Donnelly (IN)
     Doyle
     Dreier
     Edwards
     Ellison
     Emerson
     Engel
     Eshoo
     Farr
     Fattah
     Fitzpatrick
     Fortenberry
     Frank (MA)
     Frelinghuysen
     Fudge
     Gallegly
     Garamendi
     Gerlach
     Gibson
     Gonzalez
     Green, Al
     Green, Gene
     Grijalva
     Grimm
     Gutierrez
     Hahn
     Hanabusa
     Hanna
     Hastings (FL)
     Hastings (WA)
     Hayworth
     Heck
     Heinrich
     Herger
     Herrera Beutler
     Higgins
     Himes
     Hinchey
     Hinojosa
     Hirono
     Hochul
     Holden
     Holt
     Honda
     Hoyer
     Israel
     Jackson Lee (TX)
     Johnson (GA)
     Johnson (IL)
     Johnson (OH)
     Johnson, E. B.
     Kaptur
     Keating
     Kelly
     Kildee
     Kind
     King (NY)
     Kinzinger (IL)
     Kissell
     Kline
     Kucinich
     Lance
     Langevin
     Larsen (WA)
     Larson (CT)
     LaTourette
     Latta
     Lee (CA)
     Levin
     Lipinski
     LoBiondo
     Loebsack
     Lofgren, Zoe
     Lowey
     Lucas
     Luetkemeyer
     Lujan
     Lungren, Daniel E.
     Lynch
     Maloney
     Manzullo
     Marino
     Markey
     Matsui
     McCarthy (NY)
     McCollum
     McGovern
     McKeon
     McMorris Rodgers
     McNerney
     Meehan
     Meeks
     Michaud
     Miller (MI)
     Miller, Gary
     Miller, George
     Moore
     Murphy (CT)
     Murphy (PA)
     Nadler
     Napolitano
     Neal
     Noem
     Olver
     Owens
     Pallone
     Pascrell
     Pastor (AZ)
     Payne
     Pelosi
     Perlmutter
     Peters
     Pingree (ME)
     Pitts
     Platts
     Polis
     Price (NC)
     Quigley
     Rahall
     Rangel
     Reed
     Reichert
     Reyes
     Ribble
     Richardson
     Richmond
     Rogers (KY)
     Rogers (MI)
     Ros-Lehtinen
     Ross (AR)
     Rothman (NJ)
     Roybal-Allard
     Royce
     Runyan
     Ruppersberger
     Rush
     Ryan (OH)
     Ryan (WI)
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Schakowsky
     Schiff
     Schock
     Schwartz
     Scott, David
     Serrano
     Sessions
     Sewell
     Sherman
     Shimkus
     Shuler
     Shuster
     Simpson
     Sires
     Slaughter
     Smith (NJ)
     Smith (TX)
     Speier
     Stivers
     Sullivan
     Sutton
     Thompson (CA)
     Thompson (MS)
     Thompson (PA)
     Thornberry
     Tiberi
     Tierney
     Tonko
     Towns
     Tsongas
     Turner (NY)
     Upton
     Van Hollen
     Velazquez
     Walden
     Walz (MN)
     Wasserman Schultz
     Waters
     Watt
     Waxman
     Welch
     Wilson (FL)
     Womack
     Yarmuth
     Young (AK)
     Young (FL)

                               NOES--167

     Adams
     Aderholt
     Akin
     Amash
     Amodei
     Austria
     Bachmann
     Bachus
     Barrow
     Bartlett
     Barton (TX)
     Becerra
     Berg
     Bilirakis
     Bishop (UT)
     Black
     Blackburn
     Blumenauer
     Bonner
     Boustany
     Brooks
     Broun (GA)
     Bucshon
     Burgess
     Campbell
     Canseco
     Cantor
     Capito
     Carter
     Cassidy
     Chabot
     Chaffetz
     Coffman (CO)
     Conaway
     Cooper
     Cravaack
     Crawford
     Culberson
     DeFazio
     DeLauro
     DesJarlais
     Duffy
     Duncan (SC)
     Duncan (TN)
     Ellmers
     Farenthold
     Fincher
     Flake
     Fleischmann
     Fleming
     Flores
     Forbes
     Foxx
     Franks (AZ)
     Gardner
     Garrett
     Gibbs
     Gingrey (GA)
     Gohmert
     Goodlatte
     Gosar
     Gowdy
     Granger
     Graves (GA)
     Griffin (AR)
     Griffith (VA)
     Guinta
     Guthrie
     Hall
     Harper
     Harris
     Hartzler
     Hensarling
     Huelskamp
     Huizenga (MI)
     Hultgren
     Hunter
     Hurt
     Issa
     Jenkins
     Johnson, Sam
     Jones
     Jordan
     King (IA)
     Kingston
     Labrador
     Lamborn
     Landry
     Lankford
     Latham
     Long
     Lummis
     Mack
     Marchant
     Massie
     Matheson
     McCarthy (CA)
     McCaul
     McClintock
     McDermott
     McHenry
     McIntyre
     McKinley
     Mica
     Miller (FL)
     Miller (NC)
     Moran
     Mulvaney
     Myrick
     Neugebauer
     Nugent
     Nunes
     Nunnelee
     Olson
     Palazzo
     Paulsen
     Pearce
     Pence
     Peterson
     Petri
     Poe (TX)
     Pompeo
     Posey
     Price (GA)
     Quayle
     Rehberg
     Renacci
     Rigell
     Rivera
     Roby
     Roe (TN)
     Rogers (AL)
     Rohrabacher
     Rokita
     Rooney
     Roskam
     Ross (FL)
     Scalise
     Schilling
     Schmidt
     Schrader
     Schweikert
     Scott (SC)
     Scott (VA)
     Scott, Austin
     Sensenbrenner
     Smith (NE)
     Smith (WA)
     Southerland
     Stearns
     Stutzman
     Terry
     Tipton
     Turner (OH)
     Visclosky
     Walberg
     Walsh (IL)
     Webster
     West
     Westmoreland
     Whitfield
     Wilson (SC)
     Wittman
     Wolf
     Woodall
     Yoder
     Young (IN)

[[Page 18611]]



                             NOT VOTING--8

     Buerkle
     Burton (IN)
     Graves (MO)
     Lewis (CA)
     Lewis (GA)
     Paul
     Stark
     Woolsey

                              {time}  2257

  So the motion was agreed to.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.
  Stated against:
  Mr. GRAVES of Missouri. Mr. Speaker, on rollcall No. 659, I was 
unavoidably detained. Had I been present, I would have voted ``no.''
  Ms. BUERKLE. Mr. Speaker, on rollcall No. 659, had I been present, I 
would have voted ``no.''

                          ____________________