[Congressional Record (Bound Edition), Volume 160 (2014), Part 6]
[Senate]
[Pages 8339-8404]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 3101. Ms. STABENOW (for herself, Mr. Brown, Mr. Roberts, and Mr. 
Blunt) submitted an amendment intended to be proposed by her to the 
bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow 
employers to exempt employees with health coverage under TRICARE or the 
Veterans Administration from being taken into account for purposes of 
the employer mandate under the Patient Protection and Affordable Care 
Act; which was ordered to lie on the table; as follows:

       On page 30, strike line 19 and insert the following:

     tion 125(c) of such Act).
       ``(iv) Special maximum increase amount.--In the case of 
     round 4 extension property placed in service by a 
     corporation--

       ``(I) subparagraph (C)(iii) shall not apply, and
       ``(II) the term `maximum increase amount' means an amount 
     that is 50 percent of the AMT credit increase amount 
     determined with respect to such corporation under 
     subparagraph (E) by substituting `December 31, 2013' for 
     `March 31, 2008' and by substituting `January 1, 2011' for 
     `January 1, 2006'.''.

                                 ______
                                 
  SA 3102. Mr. LEE submitted an amendment intended to be proposed by 
him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       Beginning on page 47, strike line 10 and all that follows 
     through page 50, line 9.
       Beginning on page 50, strike line 19 and all that follows 
     through page 55, line 17.
       On page 56, strike line 6 and all that follows through line 
     14.
       On page 58, strike line 3 and all that follows through line 
     11 and insert the following:


[[Page 8340]]


     case of any alternative fuel credit properly determined under 
     section 6426(d) of the Internal Revenue Code of 1986 for 
     periods after December 31, 2013, and before the date of the 
     enactment of this Act,
       Beginning on page 59, strike line 7 and all that follows 
     through page 60, line 2.
       At the appropriate place, insert the following:

      TITLE VI--ENERGY FREEDOM AND ECONOMIC PROSPERITY ACT OF 2014

                     Subtitle A--Short Title; etc.

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``Energy Freedom and 
     Economic Prosperity Act of 2014''.

               Subtitle B--Repeal of Energy Tax Subsidies

     SEC. _11. EARLY TERMINATION OF CREDIT FOR QUALIFIED FUEL CELL 
                   MOTOR VEHICLES.

       (a) In General.--Section 30B is repealed.
       (b) Conforming Amendments.--
       (1) Subparagraph (A) of section 24(b)(3) is amended by 
     striking ``, 30B''.
       (2) Paragraph (2) of section 25B(g) is amended by striking 
     ``, 30B,''.
       (3) Subsection (b) of section 38 is amended by striking 
     paragraph (25).
       (4) Subsection (a) of section 1016 is amended by striking 
     paragraph (35) and by redesignating paragraphs (36) and (37) 
     as paragraphs (35) and (36), respectively.
       (5) Subsection (m) of section 6501 is amended by striking 
     ``, 30B(h)(9)''.
       (c) Clerical Amendment.--The table of sections for subpart 
     B of part IV of subchapter A of chapter 1 is amended by 
     striking the item relating to section 30B.
       (d) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2014.

     SEC. _12. EARLY TERMINATION OF NEW QUALIFIED PLUG-IN ELECTRIC 
                   DRIVE MOTOR VEHICLES.

       (a) In General.--Section 30D is repealed.
       (b) Effective Date.--The amendment made by this section 
     shall apply to vehicles placed in service after the date of 
     the enactment of this Act.

     SEC. _13. REPEAL OF CREDIT FOR ALCOHOL USED AS FUEL.

       (a) In General.--Section 40, as amended by this Act, is 
     repealed.
       (b) Conforming Amendments.--
       (1) Subsection (b) of section 38 is amended by striking 
     paragraph (3).
       (2) Subsection (c) of section 196 is amended by striking 
     paragraph (3) and by redesignating paragraphs (4) through 
     (14) as paragraphs (3) through (13), respectively.
       (3) Paragraph (1) of section 4101(a) is amended by striking 
     ``, and every person producing cellulosic biofuel (as defined 
     in section 40(b)(6)(E))''.
       (4) Paragraph (1) of section 4104(a) is amended by striking 
     ``, 40''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to fuel sold or used after the date of the 
     enactment of this Act.

     SEC. _14. REPEAL OF ENHANCED OIL RECOVERY CREDIT.

       (a) In General.--Section 43 is repealed.
       (b) Conforming Amendments.--
       (1) Subsection (b) of section 38 is amended by striking 
     paragraph (6).
       (2) Paragraph (4) of section 45Q(d) is amended by inserting 
     ``(as in effect on the day before the date of the enactment 
     of the Energy Freedom and Economic Prosperity Act of 2014)'' 
     after ``section 43(c)(2)''.
       (3) Subsection (c) of section 196, as amended by sections 
     105 and 106 of this Act, is amended by striking paragraph (5) 
     and by redesignating paragraphs (6) through (12) as 
     paragraphs (5) through (11), respectively.
       (c) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 is amended by 
     striking the item relating to section 43.
       (d) Effective Date.--The amendments made by this section 
     shall apply to costs paid or incurred after December 31, 
     2014.

     SEC. _15. REPEAL OF CREDIT FOR PRODUCING OIL AND GAS FROM 
                   MARGINAL WELLS.

       (a) In General.--Section 45I is repealed.
       (b) Conforming Amendment.--Subsection (b) of section 38 is 
     amended by striking paragraph (19).
       (c) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 is amended by 
     striking the item relating to section 45I.
       (d) Effective Date.--The amendments made by this section 
     shall apply to production in taxable years beginning after 
     December 31, 2014.

     SEC. _16. TERMINATION OF CREDIT FOR PRODUCTION FROM ADVANCED 
                   NUCLEAR POWER FACILITIES.

       (a) In General.--Subparagraph (B) of section 45J(d)(1) is 
     amended by striking ``January 1, 2021'' and inserting 
     ``January 1, 2015''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2014.

     SEC. _17. REPEAL OF CREDIT FOR CARBON DIOXIDE SEQUESTRATION.

       (a) In General.--Section 45Q is repealed.
       (b) Effective Date.--The amendment made by this section 
     shall apply to carbon dioxide captured after December 31, 
     2014.

     SEC. _18. TERMINATION OF ENERGY CREDIT.

       (a) In General.--Section 48 is amended by adding at the end 
     the following new subsection:
       ``(e) Termination.--No credit shall be allowed under 
     subsection (a) for any period after December 31, 2014.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2014.

     SEC. _19. REPEAL OF QUALIFYING ADVANCED COAL PROJECT.

       (a) In General.--Section 48A is repealed.
       (b) Conforming Amendment.--Section 46 is amended by 
     striking paragraph (3) and by redesignating paragraphs (4), 
     (5), and (6) as paragraphs (3), (4), and (5), respectively.
       (c) Clerical Amendment.--The table of sections for subpart 
     E of part IV of subchapter A of chapter 1 is amended by 
     striking the item relating to section 48A.
       (d) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2014.

     SEC. _20. REPEAL OF QUALIFYING GASIFICATION PROJECT CREDIT.

       (a) In General.--Section 48B is repealed.
       (b) Conforming Amendment.--Section 46, as amended by this 
     Act, is amended by striking paragraph (3) and by 
     redesignating paragraphs (4) and (5) as paragraphs (3) and 
     (4), respectively.
       (c) Clerical Amendment.--The table of sections for subpart 
     E of part IV of subchapter A of chapter 1 is amended by 
     striking the item relating to section 48B.
       (d) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2014.

     SEC. _21. REPEAL OF QUALIFYING ADVANCED ENERGY PROJECT 
                   CREDIT.

       (a) In General.--Section 48C is repealed.
       (b) Conforming Amendment.--Section 46, as amended by this 
     Act, is amended by striking paragraph (3) and by 
     redesignating paragraph (4) as paragraph (3).
       (c) Clerical Amendment.--The table of sections for subpart 
     E of part IV of subchapter A of chapter 1 is amended by 
     striking the item relating to section 48C.
       (d) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2014.

           Subtitle C--Reduction of Corporate Income Tax Rate

     SEC. _31. CORPORATE INCOME TAX RATE REDUCED.

       (a) In General.--Not later than 1 year after the date of 
     the enactment of this Act, the Secretary of the Treasury 
     shall prescribe, in lieu of the rates of tax under paragraphs 
     (1) and (2) of section 11(b), section 1201(a), and paragraphs 
     (1), (2), and (6) of section 1445(e) of the Internal Revenue 
     Code of 1986, such rates of tax as the Secretary estimates 
     would result in--
       (1) a decrease in revenue to the Treasury for taxable years 
     beginning during the 10-year period beginning on the date of 
     the enactment of this Act, equal to
       (2) the increase in revenue for such taxable years by 
     reason of the amendments made by title I of this Act.
       (b) Maintenance of Graduated Rates.--In prescribing the tax 
     rates under subsection (a), the Secretary shall ensure that 
     each rate modified under such subsection is reduced by a 
     uniform percentage.
       (c) Effective Date.--The rates prescribed by the Secretary 
     under subsection (a) shall apply to taxable years beginning 
     more than 1 year after the date of the enactment of this Act.
                                 ______
                                 
  SA 3103. Mr. BLUMENTHAL submitted an amendment intended to be 
proposed by him to the bill H.R. 3474, to amend the Internal Revenue 
Code of 1986 to allow employers to exempt employees with health 
coverage under TRICARE or the Veterans Administration from being taken 
into account for purposes of the employer mandate under the Patient 
Protection and Affordable Care Act; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

                       TITLE __--OTHER PROVISIONS

     SEC. _01. LIMITATION ON STATE TAXATION OF COMPENSATION EARNED 
                   BY NONRESIDENT TELECOMMUTERS AND OTHER MULTI-
                   STATE WORKERS.

       (a) In General.--Chapter 4 of title 4, United States Code, 
     is amended by adding at the end the following:

     ``Sec. 127. Limitation on State taxation of compensation 
       earned by nonresident telecommuters and other multi-State 
       workers

       ``(a) In General.--In applying its income tax laws to the 
     compensation of a nonresident individual, a State may deem 
     such nonresident individual to be present in or working in 
     such State for any period of time only if such nonresident 
     individual is physically present in such State for such 
     period and such State may not impose nonresident income taxes 
     on such compensation with respect to any period of time when 
     such nonresident individual is physically present in another 
     State.
       ``(b) Determination of Physical Presence.--For purposes of 
     determining physical presence, no State may deem a 
     nonresident individual to be present in or working in such 
     State on the grounds that--

[[Page 8341]]

       ``(1) such nonresident individual is present at or working 
     at home for convenience, or
       ``(2) such nonresident individual's work at home or office 
     at home fails any convenience of the employer test or any 
     similar test.
       ``(c) Determination of Periods of Time With Respect to 
     Which Compensation Is Paid.--For purposes of determining the 
     periods of time with respect to which compensation is paid, 
     no State may deem a period of time during which a nonresident 
     individual is physically present in another State and 
     performing certain tasks in such other State to be--
       ``(1) time that is not normal work time unless such 
     individual's employer deems such period to be time that is 
     not normal work time,
       ``(2) nonworking time unless such individual's employer 
     deems such period to be nonworking time, or
       ``(3) time with respect to which no compensation is paid 
     unless such individual's employer deems such period to be 
     time with respect to which no compensation is paid.
       ``(d) Definitions.--As used in this section--
       ``(1) State.--The term `State' means each of the several 
     States (or any subdivision thereof), the District of 
     Columbia, and any territory or possession of the United 
     States.
       ``(2) Income tax.--The term `income tax' has the meaning 
     given such term by section 110(c).
       ``(3) Income tax laws.--The term `income tax laws' includes 
     any statutes, regulations, administrative practices, 
     administrative interpretations, and judicial decisions.
       ``(4) Nonresident individual.--The term `nonresident 
     individual' means an individual who is not a resident of the 
     State applying its income tax laws to such individual.
       ``(5) Employee.--The term `employee' means an employee as 
     defined by the State in which the nonresident individual is 
     physically present and performing personal services for 
     compensation.
       ``(6) Employer.--The term `employer' means the person 
     having control of the payment of an individual's 
     compensation.
       ``(7) Compensation.--The term `compensation' means the 
     salary, wages, or other remuneration earned by an individual 
     for personal services performed as an employee or as an 
     independent contractor.
       ``(e) No Inference.--Nothing in this section shall be 
     construed as bearing on--
       ``(1) any tax laws other than income tax laws,
       ``(2) the taxation of corporations, partnerships, trusts, 
     estates, limited liability companies, or other entities, 
     organizations, or persons other than nonresident individuals 
     in their capacities as employees or independent contractors,
       ``(3) the taxation of individuals in their capacities as 
     shareholders, partners, trust and estate beneficiaries, 
     members or managers of limited liability companies, or in any 
     similar capacities, and
       ``(4) the income taxation of dividends, interest, 
     annuities, rents, royalties, or other forms of unearned 
     income.''.
       (b) Clerical Amendment.--The table of sections of such 
     chapter 4 is amended by adding at the end the following new 
     item:

``127. Limitation on State taxation of compensation earned by 
              nonresident telecommuters and other multi-State 
              workers.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.
                                 ______
                                 
  SA 3104. Mr. BLUMENTHAL submitted an amendment intended to be 
proposed by him to the bill H.R. 3474, to amend the Internal Revenue 
Code of 1986 to allow employers to exempt employees with health 
coverage under TRICARE or the Veterans Administration from being taken 
into account for purposes of the employer mandate under the Patient 
Protection and Affordable Care Act; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

            TITLE __--STOP SUBSIDIZING CHILDHOOD OBESITY ACT

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``Stop Subsidizing Childhood 
     Obesity Act''.

     SEC. _02. FINDINGS.

       Congress finds the following:
       (1) Childhood obesity has more than doubled in children and 
     tripled in adolescents in the past 30 years. Currently, more 
     than one-third of children and adolescents are overweight or 
     obese.
       (2) A report by the Robert Wood Johnson Foundation found 
     that if the population of the United States continues on its 
     current trajectory, adult obesity rates could exceed 60 
     percent in a number of states by 2030.
       (3) Health-related behaviors, such as eating habits and 
     physical activity patterns, develop early in life and often 
     extend into adulthood. The diets of American children and 
     adolescents depart substantially from recommended patterns 
     that put their health at risk. Overall, American children and 
     youth are not achieving basic nutritional goals. They are 
     consuming excess calories and added sugars and have higher 
     than recommended intakes of sodium, total fat, and saturated 
     fats.
       (4) Budgets for food marketing to children have spiked into 
     the billions of dollars. According to a 2012 report from the 
     Federal Trade Commission, the total amount spent on food 
     marketing to children is about $2,000,000,000 a year.
       (5) Companies market food to children through television, 
     radio, Internet, magazines, product placement in movies and 
     video games, schools, product packages, toys, clothing and 
     other merchandise, and almost anywhere a logo or product 
     image can be shown.
       (6) According to a comprehensive review by the National 
     Academies' Institute of Medicine, studies demonstrate that 
     television food advertising affects children's food choices, 
     food purchase requests, diets, and health.
       (7) A 2005 report from the Institute of Medicine confirmed 
     that ``aggressive marketing of high-calorie foods to children 
     and adolescents has been identified as one of the major 
     contributors to childhood obesity''.
       (8) Nearly three-quarters of the foods advertised on 
     television shows intended for children are for sweets and 
     convenience or fast foods.
       (9) A study published in the Journal of Law and Economics 
     and funded by the National Institutes of Health found that 
     the elimination of the tax deduction that allows companies to 
     deduct costs associated with advertising food of poor 
     nutritional quality to children could reduce the rates of 
     childhood obesity by 5 to 7 percent.

     SEC. _03. DENIAL OF DEDUCTION FOR ADVERTISING AND MARKETING 
                   DIRECTED AT CHILDREN TO PROMOTE THE CONSUMPTION 
                   OF FOOD OF POOR NUTRITIONAL QUALITY.

       (a) In General.--Part IX of subchapter B of chapter 1 is 
     amended by adding at the end the following new section:

     ``SEC. 280I. DENIAL OF DEDUCTION FOR ADVERTISING AND 
                   MARKETING DIRECTED AT CHILDREN TO PROMOTE THE 
                   CONSUMPTION OF FOOD OF POOR NUTRITIONAL 
                   QUALITY.

       ``(a) In General.--No deduction shall be allowed under this 
     chapter with respect to--
       ``(1) any advertisement or marketing--
       ``(A) primarily directed at children for purposes of 
     promoting the consumption by children of any food of poor 
     nutritional quality, or
       ``(B) of a brand primarily associated with food of poor 
     nutritional quality that is primarily directed at children, 
     and
       ``(2) any of the following which are incurred or provided 
     primarily for purposes described in paragraph (1):
       ``(A) Travel expenses (including meals and lodging).
       ``(B) Goods or services of a type generally considered to 
     constitute entertainment, amusement, or recreation or the use 
     of a facility in connection with providing such goods and 
     services.
       ``(C) Gifts.
       ``(D) Other promotion expenses.
       ``(b) IOM Study.--
       ``(1) In general.--Not later than 60 days after the date of 
     the enactment of this section, the Secretary shall enter into 
     a contract with the Institute of Medicine under which the 
     Institute of Medicine shall develop procedures for the 
     evaluation and identification of--
       ``(A) food of poor nutritional quality, and
       ``(B) brands that are primarily associated with food of 
     poor nutritional quality.
       ``(2) IOM report.--Not later than 12 months after the date 
     of the enactment of this section, the Institute of Medicine 
     shall submit to the Secretary a report that establishes the 
     proposed procedures described in paragraph (1).
       ``(c) Definitions.--In this section:
       ``(1) Brand.--The term `brand' means a corporate or product 
     name, a business image, or a mark, regardless of whether it 
     may legally qualify as a trademark, used by a seller or 
     manufacturer to identify goods or services and to distinguish 
     them from the goods of a competitor.
       ``(2) Child.--The term `child' means an individual who is 
     under the age of 14.
       ``(3) Food.--The term `food' shall include beverages, 
     candy, and chewing gum.
       ``(4) Marketing.--The term `marketing' means any product or 
     brand advertising or promotional techniques directed at 
     children, including--
       ``(A) advertising (including product placement) on 
     television and radio, in print media, in social media, and on 
     the Internet (including third-party and company-sponsored 
     websites),
       ``(B) the use of characters or mascots, themes, activities, 
     incentives, or any other advertising or promotional 
     techniques contained on the packaging or labeling of a 
     product,
       ``(C) advertising preceding a movie shown in a movie 
     theater or placed on a video (DVD or VHS) or within a video 
     game or mobile application,
       ``(D) promotional content transmitted to televisions, 
     personal computers, and other digital or mobile devices,

[[Page 8342]]

       ``(E) advertising displays and promotions at the retail 
     site or events,
       ``(F) specialty or premium items distributed in connection 
     with the sale of a product or a product loyalty program,
       ``(G) character licensing, toy co-branding and cross-
     promotions,
       ``(H) celebrity and athlete endorsements, and
       ``(I) any advertising or promotional techniques used within 
     a school.
       ``(d) Regulations.--Not later than 18 months after the date 
     of the enactment of this section, the Secretary, in 
     consultation with the Secretary of Health and Human Services 
     and the Federal Trade Commission, shall promulgate such 
     regulations as may be necessary to carry out the purposes of 
     this section, including regulations defining the terms 
     `directed at children', `food of poor nutritional quality', 
     and `brand primarily associated with food of poor nutritional 
     quality' for purposes of this section.''.
       (b) Clerical Amendment.--The table of sections for part IX 
     of subchapter B of chapter 1 is amended by adding at the end 
     the following new item:

``Sec. 280I. Denial of deduction for advertising and marketing directed 
              at children to promote the consumption of food of poor 
              nutritional quality.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred in taxable years 
     beginning 24 months after the date of the enactment of this 
     Act.

     SEC. _04. ADDITIONAL FUNDING FOR THE FRESH FRUIT AND 
                   VEGETABLE PROGRAM.

       In addition to any other amounts made available to carry 
     out the Fresh Fruit and Vegetable Program under section 19 of 
     the Richard B. Russell National School Lunch Act (42 U.S.C. 
     1769a), the Secretary of the Treasury (or the Secretary's 
     delegate) shall, on an annual basis, transfer to such 
     program, from amounts in the general fund of the Treasury of 
     the United States, an amount determined by the Secretary of 
     the Treasury (or the Secretary's delegate) to be equal to the 
     increase in revenue for the preceding 12-month period by 
     reason of the enactment of section 280I of the Internal 
     Revenue Code of 1986, as added by this Act.
                                 ______
                                 
  SA 3105. Mr. BLUMENTHAL submitted an amendment intended to be 
proposed by him to the bill H.R. 3474, to amend the Internal Revenue 
Code of 1986 to allow employers to exempt employees with health 
coverage under TRICARE or the Veterans Administration from being taken 
into account for purposes of the employer mandate under the Patient 
Protection and Affordable Care Act; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

                       TITLE __--OTHER PROVISIONS

     SEC. _01. MANUFACTURING REINVESTMENT ACCOUNTS.

       (a) In General.--Part VI of subchapter B of chapter 1 is 
     amended by inserting after section 199 the following new 
     section:

     ``SEC. 199A. MANUFACTURING REINVESTMENT ACCOUNTS.

       ``(a) Deduction Allowed.--In the case of a taxpayer engaged 
     in a manufacturing business, there shall be allowed as a 
     deduction for the taxable year the amount paid in cash by the 
     taxpayer during the taxable year to a manufacturing 
     reinvestment account (hereinafter referred to as an `MRA') 
     for the taxpayer's benefit.
       ``(b) Limitation.--
       ``(1) In general.--The amount which a taxpayer may pay into 
     an MRA for the taxable year shall not exceed the lesser of--
       ``(A) the domestic manufacturing gross receipts of the 
     taxpayer for the taxable year, or
       ``(B) $500,000.
       ``(2) Controlled groups.--
       ``(A) In general.--For purposes of this subsection, all 
     persons treated as a single employer under subsection (a) or 
     (b) of section 52 or subsection (m) or (o) of section 414 
     shall be treated as a single manufacturer.
       ``(B) Inclusion of foreign corporations.--For purposes of 
     subparagraph (A), in applying subsections (a) and (b) of 
     section 52 to this section, section 1563 shall be applied 
     without regard to subsection (b)(2)(C) thereof.
       ``(c) MRA.--For purposes of this section, the term `MRA' 
     means a trust created or organized in the United States for 
     the exclusive benefit of the taxpayer, but only if the 
     written governing instrument creating the trust meets the 
     following requirements:
       ``(1) No contribution will be accepted for any taxable year 
     unless it is in cash.
       ``(2) Contributions will not be accepted for any taxable 
     year in excess of the amount allowed as a deduction under 
     subsection (a) for such year.
       ``(3) The trustee is an eligible institution.
       ``(4) No part of the trust assets will be invested in life 
     insurance contracts.
       ``(5) No part of the trust assets will be invested in any 
     collectible (as defined in section 408(m)).
       ``(6) The assets of the trust will not be commingled with 
     other property except in a common trust fund or common 
     investment fund.
       ``(d) Tax Treatment of Accounts.--
       ``(1) In general.--An MRA is exempt from taxation under 
     this subtitle unless the account has ceased to be an MRA. 
     Notwithstanding the preceding sentence, an MRA is subject to 
     the taxes imposed by section 511 (relating to imposition of 
     tax on unrelated business income of charitable, etc. 
     organizations).
       ``(2) Account terminations.--Rules similar to the rules of 
     paragraphs (2) and (4) of section 408(e) shall apply to MRAs, 
     and any amount treated as distributed under such rules shall 
     be treated as not used to pay qualified reinvestment 
     expenses.
       ``(e) Treatment of Distributions.--
       ``(1) In general.--Except as provided in paragraphs (3) and 
     (4), there shall be includible in the gross income of the 
     taxpayer for any taxable year--
       ``(A) any amount distributed from an MRA of the taxpayer 
     during such taxable year, and
       ``(B) any deemed distribution under--
       ``(i) subsection (g)(1) (relating to deposits not 
     distributed within 7 years),
       ``(ii) subsection (g)(2) (relating to cessation in 
     manufacturing business), and
       ``(iii) subparagraph (A) or (B) of subsection (g)(3) 
     (relating to prohibited transactions and pledging account as 
     security).
       ``(2) Additional tax.--
       ``(A) In general.--The tax imposed by this chapter on the 
     taxpayer for any taxable year in which there is a 
     distribution from an MRA shall be increased by 10 percent of 
     the amount of such distribution which is includible in gross 
     income.
       ``(B) Exception.--Subparagraph (A) shall not apply to 
     distributions during the taxable year to the extent 
     necessary, under regulations prescribed by the Secretary, to 
     avoid bankruptcy.
       ``(3) Reduced inclusion for amounts reinvested.--Only 43 
     percent of the aggregate amount distributed from an MRA 
     during the taxable year shall be includible in income under 
     paragraph (1)(A) to the extent that such aggregate amount 
     does not exceed the aggregate amount of qualified 
     reinvestment expenses paid or incurred by the taxpayer during 
     such year.
       ``(4) Distribution of excess contributions.--Paragraph (1) 
     shall not apply to the distribution of any contribution paid 
     during a taxable year to an MRA to the extent that such 
     contribution exceeds the limitation applicable under 
     subsection (b) if requirements similar to the requirements of 
     section 408(d)(4) are met.
       ``(f) Definitions.--For purposes of this section--
       ``(1) Manufacturing business.--The term `manufacturing 
     business' means any trade or business having domestic 
     manufacturing gross receipts.
       ``(2) Domestic manufacturing gross receipts.--The term 
     `domestic manufacturing gross receipts' means gross receipts 
     of the taxpayer which are derived from any lease, rental, 
     license, sale, exchange, or other disposition of tangible 
     personal property which was manufactured by the taxpayer in 
     whole or in significant part within the United States. Rules 
     similar to the rules of section 199 shall apply in 
     determining the gross receipts of the taxpayer for purposes 
     of the preceding sentence.
       ``(3) Qualified reinvestment expenses.--The term `qualified 
     reinvestment expenses' means--
       ``(A) expenses for property to be used by the taxpayer in a 
     manufacturing business, and
       ``(B) expenses for job training and workforce development 
     for employees of the taxpayer.
       ``(4) Eligible institution.--
       ``(A) In general.--The term `eligible institution' means--
       ``(i) any insured depository institution, which--

       ``(I) is not controlled by a bank holding company or 
     savings and loan holding company that is also an eligible 
     institution,
       ``(II) has total assets of equal to or less than 
     $25,000,000,000, as reported in the call report as of the end 
     of the fourth quarter of calendar year 2012, and
       ``(III) is not directly or indirectly controlled by any 
     company or other entity that has total consolidated assets of 
     more than $25,000,000,000, as so reported;

       ``(ii) any bank holding company which has total 
     consolidated assets of equal to or less than $25,000,000,000;
       ``(iii) any savings and loan holding company which has 
     total consolidated assets of equal to or less than 
     $25,000,000,000;
       ``(iv) any community development financial institution loan 
     fund which has total assets of equal to or less than 
     $25,000,000,000; and
       ``(v) any small business lending company that has total 
     assets of equal to or less than $25,000,000,000.
       ``(B) Insured depository institution.--The term `insured 
     depository institution' has the meaning given such term under 
     section 3(c)(2) of the Federal Deposit Insurance Act (12 
     U.S.C. 1813(c)(2)).
       ``(C) Bank holding company.--The term `bank holding 
     company' has the meaning given such term under section 
     2(a)(1) of the

[[Page 8343]]

     Bank Holding Company Act of 1956 (12 U.S.C. 1841(2)(a)(1)).
       ``(D) Call report.--The term `call report' means--
       ``(i) reports of Condition and Income submitted to the 
     Office of the Comptroller of the Currency, the Board of 
     Governors of the Federal Reserve System, and the Federal 
     Deposit Insurance Corporation;
       ``(ii) the Office of Thrift Supervision Thrift Financial 
     Report;
       ``(iii) any report that is designated by the Office of the 
     Comptroller of the Currency, the Board of Governors of the 
     Federal Reserve System, the Federal Deposit Insurance 
     Corporation, or the Office of Thrift Supervision, as 
     applicable, as a successor to any report referred to in 
     clause (i) or (ii);
       ``(iv) standard reports of Condition and Income submitted 
     by Community Development Financial Institution loan funds to 
     the Community Development Financial Institutions Fund; and
       ``(v) with respect to an eligible institution for which no 
     report exists that is described under clause (i), (ii), or 
     (iii), such other report or set of information as the 
     Secretary, in consultation with the Administrator of the 
     Small Business Administration, may prescribe.
       ``(g) Special Rules.--
       ``(1) Tax on deposits in account which are not distributed 
     within 7 years.--
       ``(A) In general.--If, at the close of any taxable year, 
     there is a nonqualified balance in any MRA--
       ``(i) there shall be deemed distributed from the MRA during 
     such taxable year an amount equal to such balance, and
       ``(ii) the taxpayer's tax imposed by this chapter for such 
     taxable year shall be increased by 10 percent of such deemed 
     distribution.
       ``(B) Nonqualified balance.--For purposes of subparagraph 
     (A), the term `nonqualified balance' means any balance in the 
     MRA on the last day of the taxable year which is attributable 
     to amounts deposited in such account before the 6th preceding 
     taxable year.
       ``(C) Ordering rule.--For purposes of this paragraph, 
     distributions from an MRA shall be treated as made from 
     deposits (and income thereon) in the order in which such 
     deposits were made, beginning with the earliest deposits.
       ``(2) Cessation of manufacturing business.--If the taxpayer 
     ceases to be engaged in a manufacturing business, there shall 
     be deemed distributed from the MRA of the taxpayer at the 
     close of the first taxable year beginning after such 
     cessation an amount equal to the balance in the MRA (if any) 
     at such close.
       ``(3) Certain rules to apply.--Rules similar to the 
     following rules shall apply for purposes of this section:
       ``(A) Section 408(e)(2) (relating to loss of exemption of 
     account where taxpayer engages in prohibited transaction).
       ``(B) Section 408(e)(4) (relating to effect of pledging 
     account as security).
       ``(C) Section 408(h) (relating to custodial accounts).
       ``(4) Time when payments deemed made.--For purposes of this 
     section, a taxpayer shall be deemed to have made a payment to 
     an MRA on the last day of a taxable year if such payment is 
     made on account of such taxable year and is made on or before 
     the due date (without regard to extensions) for filing the 
     return of tax for such taxable year.
       ``(5) Deduction not allowed for self-employment tax.--The 
     deduction allowable by reason of subsection (a) shall not be 
     taken into account in determining an individual's net 
     earnings from self-employment (within the meaning of section 
     1402(a)) for purposes of chapter 2.
       ``(h) Reports.--The trustee of an MRA shall make such 
     reports regarding such account to the Secretary and to the 
     person for whose benefit the account is maintained with 
     respect to contributions, distributions, and such other 
     matters as the Secretary may require under regulations. The 
     reports required by this subsection shall be filed at such 
     time and in such manner and furnished to such persons at such 
     time and in such manner as may be required by such 
     regulations.
       ``(i) Termination.--No deduction shall be allowed under 
     this section for any taxable year beginning more than 10 
     years after the date of the enactment of this section.''.
       (b) Tax on Excess Contributions.--
       (1) In general.--Subsection (a) of section 4973 is amended 
     by striking ``or'' at the end of paragraph (4), by adding 
     ``or'' at the end of paragraph (5), and by inserting after 
     paragraph (5) the following new paragraph:
       ``(6) an MRA (within the meaning of section 199A(c)),''.
       (2) Excess contribution defined.--Section 4973 is amended 
     by adding at the end the following new subsection:
       ``(h) Excess Contributions to MRAs.--For purposes of this 
     section, in the case of MRAs (within the meaning of section 
     199A(c)), the term `excess contributions' means the amount by 
     which the amount contributed for the taxable year to the MRAs 
     of the taxpayer exceeds the amount which may be contributed 
     to such MRAs under section 199A(b) for such taxable year. For 
     purposes of this subsection, any contribution which is 
     distributed out of an MRA in a distribution to which section 
     199A(e)(3) applies shall be treated as an amount not 
     contributed.''.
       (c) Tax on Prohibited Transactions.--
       (1) In general.--Paragraph (1) of section 4975(e) is 
     amended by striking ``or'' at the end of subparagraph (F), by 
     redesignating subparagraph (G) as subparagraph (H), and by 
     inserting after subparagraph (F) the following:
       ``(G) an MRA described in section 199A(c), or''.
       (2) Special rule.--Subsection (c) of section 4975 is 
     amended by adding at the end the following:
       ``(7) Special rule for manufacturing reinvestment 
     accounts.--A person for whose benefit an MRA (within the 
     meaning of section 199A(c)) is established shall be exempt 
     from the tax imposed by this section with respect to any 
     transaction concerning such account (which would otherwise be 
     taxable under this section) if, with respect to such 
     transaction, the account ceases to be an MRA by reason of the 
     application of section 199A(g)(3)(A) to such account.''.
       (d) Failure To Provide Reports on MRAs.--Paragraph (2) of 
     section 6693(a) is amended by redesignating subparagraphs (A) 
     through (E) as subparagraphs (B) and (F), respectively, and 
     by inserting before subparagraph (B), as so redesignated, the 
     following new subparagraph:
       ``(A) section 199A(h) (relating to manufacturing 
     reinvestment accounts),''.
       (e) Clerical Amendment.--The table of sections for part VI 
     of subchapter B of chapter 1 is amended by inserting after 
     the item relating to section 199 the following new item:

``Sec. 199A. Manufacturing reinvestment accounts.''.

       (f) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 3106. Mr. MENENDEZ submitted an amendment intended to be proposed 
by him to the bill H.R. 3474, to amend the Internal Revenue Code of 
1986 to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       On page _, between lines _ and _, insert the following:
       (c) Special Rule for Certain Facilities.--Section 45(e) is 
     amended by adding at the end the following new paragraph:
       ``(12) Special rule for certain qualified facilities.--
       ``(A) In general.--In the case of a qualified facility 
     described in paragraph (3) or (7) of subsection (d) and 
     placed in service before the date of the enactment of this 
     paragraph, subsection (a)(2)(A)(ii) shall be applied by 
     substituting `the period beginning after December 31, 2013, 
     and ending before January 1, 2016' for `the 10-year period 
     beginning on the date the facility was originally placed in 
     service'.
       ``(B) Limitation.--No credit shall be allowed under 
     subsection (a) by reason of subparagraph (A) with respect to 
     electricity produced and sold at a facility during any period 
     which, when aggregated with all other periods for which a 
     credit is allowed under this section with respect to 
     electricity produced and sold at such facility, is in excess 
     of 10 years.''.
                                 ______
                                 
  SA 3107. Mr. BLUMENTHAL submitted an amendment intended to be 
proposed by him to the bill H.R. 3474, to amend the Internal Revenue 
Code of 1986 to allow employers to exempt employees with health 
coverage under TRICARE or the Veterans Administration from being taken 
into account for purposes of the employer mandate under the Patient 
Protection and Affordable Care Act; which was ordered to lie on the 
table; as follows:

       Beginning on page 24, strike line 1 and all that follows 
     through line 6 on page 25 and insert the following:

     SEC. 119. EXTENSION AND MODIFICATION OF WORK OPPORTUNITY TAX 
                   CREDIT.

       (a) In General.--Paragraph (4) of section 51(c) is amended 
     by striking ``for the employer'' and all that follows and 
     inserting ``for the employer after--
       ``(i) December 31, 2017, in the case of a qualified 
     veteran, and
       ``(ii) December 31, 2015, in the case of any other 
     individual.''.
       (b) Credit for Hiring Long-term Unemployment Recipients.--
       (1) In general.--Paragraph (1) of section 51(d) is amended 
     by striking ``or'' at the end of subparagraph (H), by 
     striking the period at the end of subparagraph (I) and 
     inserting ``, or'', and by adding at the end the following 
     new subparagraph:
       ``(J) a qualified long-term unemployment recipient.''.
       (2) Qualified long-term unemployment recipient.--Subsection 
     (d) of section 51 is amended by adding at the end the 
     following new paragraph:

[[Page 8344]]

       ``(15) Qualified long-term unemployment recipient.--The 
     term `qualified long-term unemployment recipient' means any 
     individual who is certified by the designated local agency as 
     being in a period of unemployment which--
       ``(A) is not less than 27 consecutive weeks, and
       ``(B) includes a period in which the individual was 
     receiving unemployment compensation under State or Federal 
     law.''.
       (c) Simplified Certification of Veteran Status.--
     Subparagraph (D) of section 51(d)(13) is amended to read as 
     follows:
       ``(D) Pre-screening of qualified veterans.--
       ``(i) In general.--Subparagraph (A) shall be applied 
     without regard to subclause (II) of clause (ii) thereof in 
     the case of an individual seeking treatment as a qualified 
     veteran with respect to whom the pre-screening notice 
     contains--

       ``(I) qualified veteran status documentation,
       ``(II) qualified proof of unemployment compensation, and
       ``(III) an affidavit furnished by the individual stating, 
     under penalty of perjury, that the information provided under 
     subclauses (I) and (II) is true.

       ``(ii) Qualified veteran status documentation.--For 
     purposes of clause (i), the term `qualified veteran status 
     documentation' means any documentation provided to an 
     individual by the Department of Defense or the National Guard 
     upon release or discharge from the Armed Forces which 
     includes information sufficient to establish that such 
     individual is a veteran.
       ``(iii) Qualified proof of unemployment compensation.--For 
     purposes of clause (i), the term `qualified proof of 
     unemployment compensation' means, with respect to an 
     individual, checks or other proof of receipt of payment of 
     unemployment compensation to such individual for periods 
     aggregating not less than 4 weeks (in the case of an 
     individual seeking treatment under paragraph (3)(A)(iii)), or 
     not less than 6 months (in the case of an individual seeking 
     treatment under clause (ii)(II) or (iv) of paragraph (3)(A)), 
     during the 1-year period ending on the hiring date.''.
       (d) Credit Made Available Against Payroll Taxes in Certain 
     Circumstances.--
       (1) In general.--Paragraph (2) of section 52(c) is 
     amended--
       (A) by striking ``qualified tax-exempt organizations'' in 
     the heading and inserting ``certain employers'', and
       (B) by striking ``by qualified tax-exempt organizations'' 
     and inserting ``by certain employers''.
       (2) Credit allowed to certain for-profit employers.--
     Subsection (e) of section 3111 is amended--
       (A) by inserting ``or a qualified for-profit employer'' 
     after ``If a qualified tax-exempt organization'' in paragraph 
     (1),
       (B) by striking ``with respect to whom a credit would be 
     allowable under section 38 by reason of section 51 if the 
     organization were not a qualified tax-exempt organization'' 
     in paragraph (1),
       (C) by inserting ``or for-profit employer'' after 
     ``employees of the organization'' each place it appears in 
     paragraphs (1) and (2),
       (D) by inserting ``in the case of a qualified tax-exempt 
     organization,'' before ``by only taking into account'' in 
     subparagraph (C) of paragraph (3),
       (E) by inserting ``or for-profit employer'' after ``the 
     organization'' in paragraph (4),
       (F) by redesignating subparagraph (B) of paragraph (5) as 
     subparagraph (C) of such paragraph, by striking ``and'' at 
     the end of subparagraph (A) of such paragraph, and by 
     inserting after subparagraph (A) of such paragraph the 
     following new subparagraph:
       ``(B) the term `qualified for-profit employer' means, with 
     respect to a taxable year, an employer not described in 
     subparagraph (A), but only if--
       ``(i) such employer does not have profits for any of the 3 
     taxable years preceding such taxable year, and
       ``(ii) such employer elects under section 51(j) not to have 
     section 51 apply to such taxable year, and'', and
       (G) by striking ``has meaning given such term by section 
     51(d)(3)'' in subparagraph (C) of paragraph (5), as so 
     redesignated, and inserting ``means a qualified veteran 
     (within the meaning of section 51(d)(3)) with respect to whom 
     a credit would be allowable under section 38 by reason of 
     section 51 if the employer of such veteran were not a 
     qualified tax-exempt organization or a qualified for-profit 
     employer''.
       (3) Transfers to federal old-age and survivors insurance 
     trust fund.--There are hereby appropriated to the Federal 
     Old-Age and Survivors Trust Fund and the Federal Disability 
     Insurance Trust Fund established under section 201 of the 
     Social Security Act (42 U.S.C. 401) amounts equal to the 
     reduction in revenues to the Treasury by reason of the 
     amendments made by paragraphs (1) and (2). Amounts 
     appropriated by the preceding sentence shall be transferred 
     from the general fund at such times and in such manner as to 
     replicate to the extent possible the transfers which would 
     have occurred to such Trust Fund had such amendments not been 
     enacted.
       (e) Report.--Not later than 2 years after the date of the 
     enactment of this Act, and annually thereafter, the 
     Commissioner of Internal Revenue, in consultation with the 
     Secretary of Labor, shall report to the Congress on the 
     effectiveness and cost-effectiveness of the amendments made 
     by subsections (a), (c), and (d) in increasing the employment 
     of veterans. Such report shall include the results of a 
     survey, conducted, if needed, in consultation with the 
     Veterans' Employment and Training Service of the Department 
     of Labor, to determine how many veterans are hired by each 
     employer that claims the credit under section 51, by reason 
     of subsection (d)(1)(B) thereof, or 3111(e) of the Internal 
     Revenue Code of 1986.
       (f) Treatment of Possessions.--
       (1) Payments to possessions.--
       (A) Mirror code possessions.--The Secretary of the Treasury 
     shall pay to each possession of the United States with a 
     mirror code tax system amounts equal to the loss to that 
     possession by reason of the amendments made by this section 
     (other than subsection (b)). Such amounts shall be determined 
     by the Secretary of the Treasury based on information 
     provided by the government of the respective possession of 
     the United States.
       (B) Other possessions.--The Secretary of the Treasury shall 
     pay to each possession of the United States which does not 
     have a mirror code tax system the amount estimated by the 
     Secretary of the Treasury as being equal to the loss to that 
     possession that would have occurred by reason of the 
     amendments made by this section (other than subsection (b)) 
     if a mirror code tax system had been in effect in such 
     possession. The preceding sentence shall not apply with 
     respect to any possession of the United States unless such 
     possession establishes to the satisfaction of the Secretary 
     that the possession has implemented (or, at the discretion of 
     the Secretary, will implement) an income tax benefit which is 
     substantially equivalent to the income tax credit in effect 
     after the amendments made by this section (other than 
     subsection (b)).
       (2) Coordination with credit allowed against united states 
     income taxes.--The credit allowed against United States 
     income taxes for any taxable year under the amendments made 
     by this section (other than subsection (b)) to section 51 of 
     the Internal Revenue Code of 1986 to any person with respect 
     to any qualified veteran shall be reduced by the amount of 
     any credit (or other tax benefit described in paragraph 
     (1)(B)) allowed to such person against income taxes imposed 
     by the possession of the United States by reason of this 
     subsection with respect to such qualified veteran for such 
     taxable year.
       (3) Definitions and special rules.--
       (A) Possession of the united states.--For purposes of this 
     subsection, the term ``possession of the United States'' 
     includes American Samoa, Guam, the Commonwealth of the 
     Northern Mariana Islands, the Commonwealth of Puerto Rico, 
     and the United States Virgin Islands.
       (B) Mirror code tax system.--For purposes of this 
     subsection, the term ``mirror code tax system'' means, with 
     respect to any possession of the United States, the income 
     tax system of such possession if the income tax liability of 
     the residents of such possession under such system is 
     determined by reference to the income tax laws of the United 
     States as if such possession were the United States.
       (C) Treatment of payments.--For purposes of section 
     1324(b)(2) of title 31, United States Code, the payments 
     under this section shall be treated in the same manner as a 
     refund due from credit provisions described in such section.
       (g) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to individuals 
     who begin work for the employer after December 31, 2013.
       (2) Special rules relating to veterans.--The amendments 
     made by subsections (c) and (d) shall apply to individuals 
     who begin work for the employer after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 3108. Mr. BLUMENTHAL submitted an amendment intended to be 
proposed by him to the bill S. 2260, to amend the Internal Revenue Code 
of 1986 to extend certain expiring provisions, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                       TITLE __--OTHER PROVISIONS

     SEC. _01. NATIONAL SCENIC TRAIL CONSERVATION CREDIT.

       (a) In General.--Subpart B of part IV of subchapter A of 
     chapter 1 is amended by adding at the end the following new 
     section:

     ``SEC. 30E. NATIONAL SCENIC TRAIL CONSERVATION CREDIT.

       ``(a) Allowance of Credit.--There shall be allowed as a 
     credit against the tax imposed by this chapter for the 
     taxable year an amount equal to the fair market value of any 
     National Scenic Trail conservation contribution of the 
     taxpayer for the taxable year.
       ``(b) National Scenic Trail Conservation Contribution.--For 
     purposes of this section--

[[Page 8345]]

       ``(1) In general.--The term `National Scenic Trail 
     conservation contribution' means any qualified conservation 
     contribution--
       ``(A) to the extent the qualified real property interest 
     with respect to such contribution includes a National Scenic 
     Trail (or portion thereof) and its trail corridor, and
       ``(B) with respect to which the taxpayer makes an election 
     under this section.
       ``(2) National scenic trail.--The term `National Scenic 
     Trail' means any trail authorized and designated under 
     section 5 of the National Trails System Act (16 U.S.C. 1244), 
     but only if such trail is at least 200 miles in length.
       ``(3) Trail corridor.--The term `trail corridor' means so 
     much of the corridor of a trail as is--
       ``(A) not less than--
       ``(i) 150 feet wide on each side of such trail, or
       ``(ii) in the case of an interest in real property of the 
     taxpayer which includes less than 150 feet on either side of 
     such trail, the entire distance with respect to such interest 
     on such side, and
       ``(B) not greater than 2,640 feet wide.
       ``(4) Qualified conservation contribution; qualified real 
     property interest.--The terms `qualified conservation 
     contribution' and `qualified real property interest' have the 
     respective meanings given such terms by section 170(h), 
     except that paragraph (2)(A) thereof shall be applied without 
     regard to any qualified mineral interest (as defined in 
     paragraph (6) thereof).
       ``(c) Special Rules.--
       ``(1) Fair market value.--Fair market value of any National 
     Scenic Trail conservation contribution shall be determined 
     under rules similar to the valuation rules under Treasury 
     Regulations under section 170, except that in any case, to 
     the extent practicable, fair market value shall be determined 
     by reference to the highest and best use of the real property 
     with respect to such contribution.
       ``(2) Election irrevocable.--An election under this section 
     may not be revoked.
       ``(3) Denial of double benefit.--No deduction shall be 
     allowed under this chapter with respect to any qualified 
     conservation contribution with respect to which an election 
     is made under this section.
       ``(d) Limitation Based on Amount of Tax; Carryforward of 
     Unused Credit.--
       ``(1) Limitation.--The credit allowed under subsection (a) 
     for any taxable year shall not exceed the sum of--
       ``(A) the taxpayer's regular tax liability (as defined in 
     section 26(b)) for the taxable year reduced by the sum of the 
     credits allowable under subpart A and sections 27, 30, 30B, 
     30C, and 30D, plus
       ``(B) the tax imposed by section 55.
       ``(2) Carryforward.--
       ``(A) In general.--If the credit allowable under subsection 
     (a) exceeds the limitation imposed by paragraph (1) for any 
     taxable year, such excess shall be carried to the succeeding 
     taxable year and added to the credit allowable under 
     subsection (a) for such succeeding taxable year.
       ``(B) Limitation.--No credit may be carried forward under 
     this subsection to any taxable year following the tenth 
     taxable year after the taxable year in which the credit 
     arose. For purposes of the preceding sentence, credits shall 
     be treated as used on a first-in first-out basis.''.
       (b) Continued Use Not Inconsistent With Conservation 
     Purposes.--A contribution of an interest in real property 
     shall not fail to be treated as a National Scenic Trail 
     conservation contribution (as defined in section 30E(b) of 
     the Internal Revenue Code of 1986) solely by reason of 
     continued use of the real property, such as for recreational 
     or agricultural use (including motor vehicle use related 
     thereto), if, under the circumstances, such use does not 
     impair significant conservation interests and is not 
     inconsistent with the purposes of the National Trails System 
     Act (16 U.S.C. 1241 et seq.).
       (c) Study Regarding Efficacy of National Scenic Trail 
     Conservation Credit.--
       (1) In general.--The Secretary of the Interior shall, in 
     consultation with the Secretary of the Treasury, study--
       (A) the efficacy of the National Scenic Trail conservation 
     credit under section 30E of the Internal Revenue Code of 1986 
     in completing, extending, and increasing the number of 
     National Scenic Trails (as defined in section 30E(b) of such 
     Code), and
       (B) the feasibility and estimated costs and benefits of--
       (i) making such credit refundable (in whole or in part), 
     and
       (ii) allowing transfer of such credit.
       (2) Report.--Not later than 4 years after the date of the 
     enactment of this Act, the Secretary of the Interior shall 
     submit a report to Congress on the results of the study 
     conducted under this subsection.
       (d) Conforming Amendment.--The table of sections for 
     subpart B of part IV of subchapter A of chapter 1 of such 
     Code is amended by adding at the end the following new item:

``30E. National Scenic Trail conservation credit.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to contributions made after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 3109. Mr. BLUMENTHAL submitted an amendment intended to be 
proposed by him to the bill S. 2260, to amend the Internal Revenue Code 
of 1986 to extend certain expiring provisions, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                       TITLE __--OTHER PROVISIONS

     SEC. _01. EXTENSION OF TIME PERIOD FOR CONTRIBUTING MILITARY 
                   DEATH GRATUITIES TO ROTH IRAS AND COVERDELL 
                   EDUCATION SAVINGS ACCOUNTS.

       (a) In General.--Sections 408A(e)(2)(A) and 530(d)(9)(A) 
     are each amended by striking ``1-year period'' and inserting 
     ``3-year period''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to amounts received under section 1477 of title 
     10, United States Code, or under section 1967 of title 38 of 
     the Internal Revenue Code of 1986 after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 3110. Mr. FLAKE (for himself, Mr. Alexander, Mr. Toomey, Mr. 
McCain, Mr. Lee, and Mr. McConnell) submitted an amendment intended to 
be proposed by him to the bill H.R. 3474, to amend the Internal Revenue 
Code of 1986 to allow employers to exempt employees with health 
coverage under TRICARE or the Veterans Administration from being taken 
into account for purposes of the employer mandate under the Patient 
Protection and Affordable Care Act; which was ordered to lie on the 
table; as follows:

       On page 52, strike line 1 and all that follows through line 
     21.
                                 ______
                                 
  SA 3111. Mr. FLAKE (for himself, Mr. Alexander, Mr. McCain, Mr. Lee, 
and Mr. McConnell) submitted an amendment intended to be proposed by 
him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       On page 52, between lines 19 and 20, insert the following:
       (c) Modification of Definition of Qualified Facilities.--
       (1) In general.--The following provisions of section 45(d), 
     as amended by subsection (a), are each amended by striking 
     ``and the construction of which begins before'' each place it 
     appears and inserting ``and before'':
       (A) Paragraph (1).
       (B) Paragraph (2)(A)(i).
       (C) Paragraph (3)(A)(i)(I).
       (D) Paragraph (6).
       (E) Paragraph (7).
       (F) Paragraph (9)(A)(ii).
       (G) Paragraph (11)(B).
       (2) Open-loop biomass facilities.--Clause (ii) of section 
     45(d)(3)(A) is amended by striking ``the construction of 
     which begins before'' and inserting ``is originally placed in 
     service before''.
       (3) Geothermal facilities.--Paragraph (4) of section 45(d), 
     as amended by subsection (a), is amended by striking ``and 
     which--'' and all that follows and inserting ``and before--
       ``(A) January 1, 2006, in the case of a facility using 
     solar energy, and
       ``(B) January 1, 2016, in the case of a facility using 
     geothermal energy.''.
                                 ______
                                 
  SA 3112. Mr. HARKIN (for himself, Mr. Grassley, Mr. Rockefeller, and 
Mr. Blunt) submitted an amendment intended to be proposed by him to the 
bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow 
employers to exempt employees with health coverage under TRICARE or the 
Veterans Administration from being taken into account for purposes of 
the employer mandate under the Patient Protection and Affordable Care 
Act; which was ordered to lie on the table; as follows:

       At the end, add the following:

                       TITLE _--OTHER PROVISIONS

     SEC. __01. INCREASE IN LIMITATION FOR ALTERNATIVE TAX 
                   LIABILITY FOR SMALL PROPERTY AND CASUALTY 
                   INSURANCE COMPANIES.

       (a) In General.--Section 831(b)(2)(A) of the Internal 
     Revenue Code of 1986 is amended--
       (1) by striking ``every insurance company other than life 
     (including interinsurers and reciprocal underwriters)'' and 
     inserting ``every property or casualty insurance company'',
       (2) in clause (i), by striking ``$1,200,000, and'' and 
     inserting ``$2,100,000,'',
       (3) by redesignating clause (ii) as clause (iii),

[[Page 8346]]

       (4) by inserting after clause (i) the following new clause:
       ``(ii) more than 50 percent of the gross receipts of such 
     company consist of premiums, and'', and
       (5) in the flush matter at the end, by striking ``clause 
     (ii)'' and inserting ``clause (iii)''.
       (b) Inflation Adjustment.--Paragraph (2) of section 831(b) 
     of such Code is amended by adding at the end the following 
     new subparagraph:
       ``(C) Inflation adjustment.--In the case of any taxable 
     year beginning in a calendar year after 2014, the dollar 
     amount set forth in subparagraph (A)(i) shall be increased by 
     an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year by substituting 
     `calendar year 2013' for `calendar year 1992' in subparagraph 
     (B) thereof.

     If the amount as adjusted under the preceding sentence is not 
     a multiple of $1,000, such amount shall be rounded to the 
     next lowest multiple of $1,000.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 3113. Mr. THUNE (for himself, Ms. Ayotte, and Mr. McConnell) 
submitted an amendment intended to be proposed by him to the bill H.R. 
3474, to amend the Internal Revenue Code of 1986 to allow employers to 
exempt employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the end, add the following:

                     TITLE _--INTERNET TAX FREEDOM

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``Internet Tax Freedom 
     Forever Act''.

     SEC. _02. FINDINGS.

       Congress makes the following findings:
       (1) The Internet has continued to drive economic growth, 
     productivity and innovation since the Internet Tax Freedom 
     Act was first enacted in 1998.
       (2) The Internet promotes a nationwide economic environment 
     that facilitates innovation, promotes efficiency, and 
     empowers people to broadly share their ideas.
       (3) According to the National Broadband Plan, cost remains 
     the biggest barrier to consumer broadband adoption. Keeping 
     Internet access affordable promotes consumer access to this 
     critical gateway to jobs, education, healthcare, and 
     entrepreneurial opportunities, regardless of race, income, or 
     neighborhood.
       (4) Small business owners rely heavily on affordable 
     Internet access, providing them with access to new markets, 
     additional consumers, and an opportunity to compete in the 
     global economy.
       (5) Economists have recognized that excessive taxation of 
     innovative communications technologies reduces economic 
     welfare more than taxes on other sectors of the economy.
       (6) The provision of affordable access to the Internet is 
     fundamental to the American economy and access to it must be 
     protected from multiple and discriminatory taxes at the State 
     and local level.
       (7) As a massive global network that spans political 
     boundaries, the Internet is inherently a matter of interstate 
     and foreign commerce within the jurisdiction of the United 
     States Congress under article I, section 8, clause 3 of the 
     Constitution of the United States.

     SEC. _03. PERMANENT MORATORIUM ON INTERNET ACCESS TAXES AND 
                   MULTIPLE AND DISCRIMINATORY TAXES ON ELECTRONIC 
                   COMMERCE.

       (a) In General.--Section 1101(a) of the Internet Tax 
     Freedom Act (47 U.S.C. 151 note) is amended by striking `` 
     during the period beginning November 1, 2003, and ending 
     November 1, 2014''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxes imposed after the date of the enactment 
     of this Act.
                                 ______
                                 
  SA 3114. Mr. THUNE (for himself and Mr. Schumer) submitted an 
amendment intended to be proposed by him to the bill H.R. 3474, to 
amend the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the end, add the following:

                       TITLE _--OTHER PROVISIONS

     SEC. _01. OLYMPIC AND PARALYMPIC MEDALS AND USOC PRIZE MONEY 
                   EXCLUDED FROM GROSS INCOME.

       (a) In General.--Section 74 is amended by adding at the end 
     the following new subsection:
       ``(d) Exception for Olympic and Paralympic Medals and 
     Prizes.--Gross income shall not include the value of any 
     medal awarded in, or any prize money received from the United 
     States Olympic Committee on account of, competition in the 
     Olympic Games or Paralympic Games.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to prizes and awards received after December 31, 
     2013.
                                 ______
                                 
  SA 3115. Mr. HOEVEN (for himself and Ms. Cantwell) submitted an 
amendment intended to be proposed by him to the bill H.R. 3474, to 
amend the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                       TITLE __--OTHER PROVISIONS

     SEC. _01. SAFE HARBOR FOR EXPENSING BY SMALL BUSINESSES OF 
                   ACQUISITION OR PRODUCTION COSTS OF TANGIBLE 
                   PROPERTY.

       (a) In General.--Section 263 is amended by adding at the 
     end the following:
       ``(j) Election for Small Businesses To Expense Certain 
     Acquisition and Production Costs.--
       ``(1) In general.--If the amount paid or incurred by an 
     eligible taxpayer to acquire or produce any item of tangible 
     property does not exceed $5,000 (or such higher amount as the 
     Secretary may prescribe by regulations), then, 
     notwithstanding subsection (a), the taxpayer may elect to 
     treat such amount as an expense which is not chargeable to 
     capital account nor treated as a material or supply. Any 
     amount so treated shall be allowed as a deduction for the 
     taxable year in which the property is acquired or produced.
       ``(2) Eligible taxpayer.--For purposes of this subsection--
       ``(A) In general.--The term `eligible taxpayer' means, with 
     respect to any taxable year, a taxpayer--
       ``(i) who meets the gross receipts test of subparagraph (B) 
     for the taxable year, and
       ``(ii) who, as of the beginning of the taxable year, has in 
     effect written accounting procedures meeting such 
     requirements as the Secretary may prescribe with respect to 
     the expensing of amounts described in paragraph (1).
       ``(B) Gross receipts test.--A taxpayer meets the gross 
     receipts test of this subparagraph for any taxable year if 
     the average annual gross receipts of such taxpayer for the 3-
     taxable-year period ending with the taxable year which 
     precedes such taxable year does not exceed $10,000,000.
       ``(C) Rules relating to gross receipts test.--For purposes 
     of subparagraph (B)--
       ``(i) the rules of paragraphs (2) and (3) of section 448(c) 
     shall apply, and
       ``(ii) in the case of a partnership, S corporation, trust, 
     estate, or other pass-thru entity, the gross receipts test 
     shall apply at the entity level.
       ``(3) Election.--Any election under this subsection for any 
     taxable year shall--
       ``(A) specify the items of tangible property to which the 
     election applies, and
       ``(B) be made, in such manner as the Secretary may 
     prescribe, on the taxpayer's return of the tax imposed by 
     this chapter for the taxable year.

     Any election made under this subsection, and any 
     specification made in any such election, may not be revoked 
     except with the consent of the Secretary.
       ``(4) Coordination with section 179.--This subsection shall 
     be applied before section 179.
       ``(5) Regulations.--The Secretary shall prescribe such 
     regulations as are necessary to carry out the purposes of 
     this subsection, including regulations providing for--
       ``(A) exceptions for property which is inventory or land or 
     for which the taxpayer makes an election for optional 
     treatment under section 162; and
       ``(B) the aggregation of all amounts paid or incurred with 
     respect to any item of tangible property.
       ``(6) Rule of construction.--If, for any taxable year, a 
     taxpayer is not an eligible taxpayer (or is an eligible 
     taxpayer who does not elect to have this subsection apply), 
     nothing in this subsection shall be construed as prohibiting 
     the expensing of any amount paid or incurred during the 
     taxable year to acquire or produce any item of tangible 
     property if such expensing is permitted under any safe harbor 
     or other provision of the regulations prescribed under this 
     section.
       ``(7) Cross reference.--For capitalization of certain 
     expenses where a taxpayer produces property or acquires 
     property for resale, see section 263A.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to amounts paid or incurred in taxable years 
     beginning after December 31, 2013.

[[Page 8347]]


                                 ______
                                 
  SA 3116. Mr. ROBERTS (for himself, Mr. McConnell, and Mr. Hatch) 
submitted an amendment intended to be proposed by him to the bill H.R. 
3474, to amend the Internal Revenue Code of 1986 to allow employers to 
exempt employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                       TITLE __--OTHER PROVISIONS

     SEC. _01. REPEAL OF DISTRIBUTIONS FOR MEDICINE QUALIFIED ONLY 
                   IF FOR PRESCRIBED DRUG OR INSULIN.

       Section 9003 of the Patient Protection and Affordable Care 
     Act (Public Law 111-148) and the amendments made by such 
     section are repealed, and the Internal Revenue Code of 1986 
     shall be applied as if such section, and amendments, had 
     never been enacted.
                                 ______
                                 
  SA 3117. Mr. VITTER submitted an amendment intended to be proposed by 
him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the end, add the following:

                       TITLE _--OTHER PROVISIONS

     SEC. __01. PRE-POPULATED RETURNS PROHIBITED.

       Except to the extent provided in section 6014, 6020, or 
     6201(d) of the Internal Revenue Code of 1986, the Secretary 
     of the Treasury (or the Secretary's delegate) shall not 
     provide to any person a proposed final return or statement 
     for use by such person to satisfy a filing or reporting 
     requirement under such Code.
                                 ______
                                 
  SA 3118. Mr. PRYOR (for Mr. Boozman (for himself and Mr. Pryor)) 
submitted an amendment intended to be proposed by Mr. Pryor to the bill 
H.R. 3474, to amend the Internal Revenue Code of 1986 to allow 
employers to exempt employees with health coverage under TRICARE or the 
Veterans Administration from being taken into account for purposes of 
the employer mandate under the Patient Protection and Affordable Care 
Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                       TITLE __--OTHER PROVISIONS

     SEC. _01. MAYFLOWER, ARKANSAS, OIL SPILL COMPENSATION 
                   EXCLUDED FROM GROSS INCOME.

       For purposes of the Internal Revenue Code of 1986--
       (1) the March 29, 2013, pipeline rupture and oil spill in 
     Mayflower, Arkansas, shall be treated as a qualified disaster 
     under section 139(c) of such Code, and
       (2) any compensation provided to or for the benefit of a 
     victim of such disaster shall be treated as a qualified 
     disaster relief payment under section 139(b) of such Code.
                                 ______
                                 
  SA 3119. Mr. HARKIN (for himself, Mr. Grassley, Mr. Rockefeller, Mr. 
Blunt, and Mr. Brown) submitted an amendment intended to be proposed by 
him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the end, add the following:

                       TITLE _--OTHER PROVISIONS

     SEC. __01. INCREASE IN LIMITATION FOR ALTERNATIVE TAX 
                   LIABILITY FOR SMALL PROPERTY AND CASUALTY 
                   INSURANCE COMPANIES.

       (a) In General.--Section 831(b)(2)(A) of the Internal 
     Revenue Code of 1986 is amended--
       (1) by striking ``every insurance company other than life 
     (including interinsurers and reciprocal underwriters)'' and 
     inserting ``every property or casualty insurance company'',
       (2) in clause (i), by striking ``$1,200,000, and'' and 
     inserting ``$2,100,000,'',
       (3) by redesignating clause (ii) as clause (iii),
       (4) by inserting after clause (i) the following new clause:
       ``(ii) more than 50 percent of the gross receipts of such 
     company consist of premiums, and'', and
       (5) in the flush matter at the end, by striking ``clause 
     (ii)'' and inserting ``clause (iii)''.
       (b) Inflation Adjustment.--Paragraph (2) of section 831(b) 
     of such Code is amended by adding at the end the following 
     new subparagraph:
       ``(C) Inflation adjustment.--In the case of any taxable 
     year beginning in a calendar year after 2014, the dollar 
     amount set forth in subparagraph (A)(i) shall be increased by 
     an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year by substituting 
     `calendar year 2013' for `calendar year 1992' in subparagraph 
     (B) thereof.

     If the amount as adjusted under the preceding sentence is not 
     a multiple of $1,000, such amount shall be rounded to the 
     next lowest multiple of $1,000.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 3120. Mr. CARPER (for himself and Mrs. Hagan) submitted an 
amendment intended to be proposed to amendment SA 3060 proposed by Mr. 
Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       On page 18, between lines 17 and 18, insert the following:
       (d) Split 100 Percent Credit for Contract Research 
     Expenses.--Subparagraph (A) of section 41(b)(3) is amended to 
     read as follows:
       ``(A) In general.--
       ``(i) Taxpayers paying for contracted research.--The term 
     `contract research expenses' means 65 percent of any amount 
     paid or incurred by the taxpayer to any person (other than an 
     employee of the taxpayer) for qualified research.
       ``(ii) Taxpayers performing contracted research.--In the 
     case of a taxpayer (other than an entity described in 
     subparagraph (C) or (D) or paragraph (5)(C)) who receives 
     amounts from any person (other than an employer of the 
     taxpayer) for qualified research on behalf of such person, 
     the term `contract research expenses' means so much of the 
     qualified research expenses paid or incurred by the taxpayer 
     as does not exceed 35 percent of the amounts so received from 
     such person.
       ``(iii) Special rules.--For purposes of clause (ii)--

       ``(I) Trade or business.--The qualified research expenses 
     of the taxpayer shall be determined as if the trade or 
     business of the taxpayer were the conduct of qualified 
     research on behalf of other persons.
       ``(II) Research not treated as funded research.--
     Subparagraph (H) of subsection (d)(4) shall not apply.
       ``(III) Qualified research.--The qualified research 
     expenses of a taxpayer shall be determined as if the 
     conditions of subparagraph (B) of subsection (d)(1) are 
     satisfied if the business component described in subparagraph 
     (B)(ii) thereof is a business component of either of the 
     taxpayers described in clauses (i) and (ii).

       ``(iv) Denial of double benefit.--The amount of any in-
     house research expenses taken into account under this section 
     with respect to a taxpayer described in clause (ii) shall be 
     reduced by the amount of the contract research expenses taken 
     into account under such clause with respect to such taxpayer 
     for the taxable year.''.
       (e) Inclusion of Basic Research Payments.--Subsection (b) 
     of section 41 is amended by redesignating paragraph (5), as 
     added by this section, as paragraph (6), and by inserting 
     after paragraph (4) the following new paragraph:
       ``(5) Basic research payments.--In the case of basic 
     research payments (as defined in subsection (e)(2)) made by 
     the taxpayer, paragraph (3)(A) shall be applied by 
     substituting `100 percent' for `65 percent'.''.
       (f) Effective Date.--The amendments made by subsections (d) 
     and (e) shall apply to taxable years beginning after December 
     31, 2014.
                                 ______
                                 
  SA 3121. Mr. CARPER submitted an amendment intended to be proposed to 
amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend 
the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       Beginning on page 10, strike line 11 and all that follows 
     through page 18, line 17, and insert the following:

[[Page 8348]]



     SEC. 111. PERMANENT EXTENSION AND MODIFICATION OF RESEARCH 
                   CREDIT.

       (a) Simplified Credit for Qualified Research Expenses.--
     Subsection (a) of section 41 is amended to read as follows:
       ``(a) General Rule.--For purposes of section 38, the 
     research credit determined under this section for the taxable 
     year shall be an amount equal to 25 percent of so much of the 
     qualified research expenses for the taxable year as exceeds 
     50 percent of the average qualified research expenses for the 
     3 taxable years preceding the taxable year for which the 
     credit is being determined.''.
       (b) Special Rules and Termination of Base Amount 
     Calculation.--
       (1) In general.--Subsection (c) of section 41 is amended to 
     read as follows:
       ``(c) Special Rule in Case of No Qualified Research 
     Expenses in Any of 3 Preceding Taxable Years.--
       ``(1) Taxpayers to which subsection applies.--The credit 
     under this section shall be determined under this subsection, 
     and not under subsection (a), if, in any one of the 3 taxable 
     years preceding the taxable year for which the credit is 
     being determined, the taxpayer has no qualified research 
     expenses.
       ``(2) Credit rate.--The credit determined under this 
     subsection shall be equal to 10 percent of the qualified 
     research expenses for the taxable year.''.
       (2) Consistent treatment of expenses.--Subsection (b) of 
     section 41 is amended by adding at the end the following new 
     paragraph:
       ``(5) Consistent treatment of expenses required.--
       ``(A) In general.--Notwithstanding whether the period for 
     filing a claim for credit or refund has expired for any 
     taxable year in the 3-taxable-year period taken into account 
     under subsection (a), the qualified research expenses taken 
     into account for such year shall be determined on a basis 
     consistent with the determination of qualified research 
     expenses for the credit year.
       ``(B) Prevention of distortions.--The Secretary may 
     prescribe regulations to prevent distortions in calculating a 
     taxpayer's qualified research expenses caused by a change in 
     accounting methods used by such taxpayer between the credit 
     year and a year in such 3-taxable-year period.''.
       (c) Inclusion of Qualified Research Expenses of an Acquired 
     Person.--
       (1) Partial inclusion of pre-acquisition qualified research 
     expenses.--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 a trade or business of another person (hereinafter in this 
     paragraph referred to as the `predecessor') or the major 
     portion of a separate unit of a trade or business of a 
     predecessor, then the amount of qualified research expenses 
     paid or incurred by the acquiring person during the 3 taxable 
     years preceding the taxable year in which the credit under 
     this section is determined shall be increased by--

       ``(I) for purposes of applying this section for the taxable 
     year in which such acquisition is made, the amount determined 
     under clause (ii), and
       ``(II) for purposes of applying this section for any 
     taxable year after the taxable year in which such acquisition 
     is made, so much of the qualified research expenses paid or 
     incurred by the predecessor with respect to the acquired 
     trade or business during the portion of the measurement 
     period that is part of the 3-taxable-year period preceding 
     the taxable year for which the credit is determined as is 
     attributable to the portion of such trade or business or 
     separate unit acquired by such person.

       ``(ii) Amount determined.--The amount determined under this 
     clause is the amount equal to the product of--

       ``(I) so much of the qualified research expenses paid or 
     incurred by the predecessor with respect to the acquired 
     trade or business during the 3 taxable years before the 
     taxable year in which the acquisition is made as is 
     attributable to the portion of such trade or business or 
     separate unit acquired by the acquiring person, and
       ``(II) the number of months in the period beginning on the 
     date of the acquisition and ending on the last day of the 
     taxable year in which the acquisition is made,

     divided by 12.
       ``(iii) Special rules for coordinating taxable years.--In 
     the case of an acquiring person and a predecessor whose 
     taxable years do not begin on the same date--

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

       ``(iv) Measurement period.--For purposes of this 
     subparagraph, the term `measurement period' means the taxable 
     year of the acquiring person in which the acquisition is made 
     and the 3 taxable years of the acquiring person preceding 
     such taxable year.''.
       (2) Expenses 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 the predecessor during the 3 taxable years 
     preceding such taxable year shall be reduced--
       ``(i) in the case of the taxable year in which such 
     disposition is made, by an amount equal to the product of--

       ``(I) the amount of qualified research expenses paid or 
     incurred during such 3 taxable years with respect to the 
     acquired business, and
       ``(II) the number of days in the period beginning on the 
     date of acquisition (as determined for purposes of 
     subparagraph (A)(ii)(II)) and ending on the last day of the 
     taxable year of the predecessor in which the disposition is 
     made,

     divided by the number of days in the taxable year of the 
     predecessor, and
       ``(ii) in the case of any taxable year ending after the 
     taxable year in which such disposition is made, the amount 
     described in clause (i)(I).''.
       (d) Aggregation of Expenditures.--Paragraph (1) of section 
     41(f), as amended by the American Taxpayer Relief Act of 
     2012, is amended--
       (1) by striking ``of the qualified research expenses, basic 
     research payments, and amounts paid or incurred to energy 
     research consortiums,'' in subparagraph (A)(ii) and inserting 
     ``qualified research expenses'', and
       (2) by striking ``of the qualified research expenses, basic 
     research payments, and amounts paid or incurred to energy 
     research consortiums,'' in subparagraph (B)(ii) and inserting 
     ``qualified research expenses''.
       (e) Split 100 Percent Credit for Contract Research 
     Expenses.--Subparagraph (A) of section 41(b)(3) is amended to 
     read as follows:
       ``(A) In general.--
       ``(i) Taxpayers paying for contracted research.--The term 
     `contract research expenses' means 65 percent of any amount 
     paid or incurred by the taxpayer to any person (other than an 
     employee of the taxpayer) for qualified research.
       ``(ii) Taxpayers performing contracted research.--In the 
     case of a taxpayer (other than an entity described in 
     subparagraph (C) or (D) or paragraph (5)(C)) who receives 
     amounts from any person (other than an employer of the 
     taxpayer) for qualified research on behalf of such person, 
     the term `contract research expenses' means so much of the 
     qualified research expenses paid or incurred by the taxpayer 
     as does not exceed 35 percent of the amounts so received from 
     such person.
       ``(iii) Special rules.--For purposes of clause (ii)--

       ``(I) Trade or business.--The qualified research expenses 
     of the taxpayer shall be determined as if the trade or 
     business of the taxpayer were the conduct of qualified 
     research on behalf of other persons.
       ``(II) Research not treated as funded research.--
     Subparagraph (H) of subsection (d)(4) shall not apply.
       ``(III) Qualified research.--The qualified research 
     expenses of a taxpayer shall be determined as if the 
     conditions of subparagraph (B) of subsection (d)(1) are 
     satisfied if the business component described in subparagraph 
     (B)(ii) thereof is a business component of either of the 
     taxpayers described in clauses (i) and (ii).

       ``(iv) Denial of double benefit.--The amount of any in-
     house research expenses taken into account under this section 
     with respect to a taxpayer described in clause (ii) shall be 
     reduced by the amount of the contract research expenses taken 
     into account under such clause with respect to such taxpayer 
     for the taxable year.''.
       (f) Inclusion of Basic Research Payments.--Subsection (b) 
     of section 41 is amended by redesignating paragraph (5), as 
     added by this section, as paragraph (6), and by inserting 
     after paragraph (4) the following new paragraph:
       ``(5) Basic research payments.--
       ``(A) In general.--In the case of basic research payments 
     made by the taxpayer, paragraph (3)(A) shall be applied by 
     substituting `100 percent' for `65 percent'.
       ``(B) Basic research payments.--For purposes of this 
     paragraph, the term `basic research payment' means, with 
     respect to any taxable year, any amount paid in cash during 
     such taxable year by a corporation to any qualified 
     organization for basic research, but only if--
       ``(i) such payment is made pursuant to a written agreement 
     between such corporation and such qualified organization, and
       ``(ii) except in the case of a payment to a qualified 
     organization described in clause (iii) or (iv) of 
     subparagraph (C), such basic research is to be performed by 
     such qualified organization.
       ``(C) Qualified organization.--For purposes of this 
     paragraph, the term `qualified organization' means any of the 
     following organizations:

[[Page 8349]]

       ``(i) Educational institutions.--Any educational 
     organization which--

       ``(I) is an institution of higher education (within the 
     meaning of section 3304(f)), and
       ``(II) is described in section 170(b)(1)(A)(ii).

       ``(ii) Certain scientific research organizations.--Any 
     organization not described in clause (i) which--

       ``(I) is described in section 501(c)(3) and is exempt from 
     tax under section 501(a),
       ``(II) is organized and operated primarily to conduct 
     scientific research, and
       ``(III) is not a private foundation.

       ``(iii) Scientific tax-exempt organizations.--Any 
     organization which--

       ``(I) is described in section 501(c)(3) (other than a 
     private foundation) or section 501(c)(6),
       ``(II) is exempt from tax under section 501(a),
       ``(III) is organized and operated primarily to promote 
     scientific research by qualified organizations described in 
     clause (i) pursuant to written research agreements, and
       ``(IV) currently expends substantially all of its funds or 
     substantially all of the basic research payments received by 
     it for grants to, or contracts for basic research with, an 
     organization described in clause (i).

       ``(iv) Certain grant organizations.--Any organization not 
     described in clause (ii) or (iii) which--

       ``(I) is described in section 501(c)(3) and is exempt from 
     tax under section 501(a) (other than a private foundation),
       ``(II) is established and maintained by an organization 
     established before July 10, 1981, which meets the 
     requirements of subclause (I),
       ``(III) is organized and operated exclusively for the 
     purpose of making grants to organizations described in clause 
     (i) pursuant to written research agreements for purposes of 
     basic research, and
       ``(IV) makes an election, revocable only with the consent 
     of the Secretary, to be treated as a private foundation for 
     purposes of this title (other than section 4940, relating to 
     excise tax based on investment income).

       ``(D) Definitions and special rules.--For purposes of this 
     paragraph--
       ``(i) Basic research.--The term `basic research' means any 
     original investigation for the advancement of scientific 
     knowledge not having a specific commercial objective, except 
     that such term shall not include--

       ``(I) basic research conducted outside of the United 
     States, and
       ``(II) basic research in the social sciences, arts, or 
     humanities.

       ``(ii) Trade or business qualification.--For purposes of 
     applying paragraph (1) to this paragraph, any basic research 
     payments shall be treated as an amount paid in carrying on a 
     trade or business of the taxpayer in the taxable year in 
     which it is paid (without regard to the provisions of 
     paragraph (3)(B)).
       ``(iii) Certain corporations not eligible.--The term 
     `corporation' shall not include--

       ``(I) an S corporation,
       ``(II) a personal holding company (as defined in section 
     542), or
       ``(III) a service organization (as defined in section 
     414(m)(3)).''.

       (g) Permanent Extension.--
       (1) Section 41 is amended by striking subsection (h).
       (2) Paragraph (1) of section 45C(b) is amended by striking 
     subparagraph (D).
       (h) Conforming Amendments.--
       (1) Termination of basic research payment calculation.--
     Section 41 is amended--
       (A) by striking subsection (e),
       (B) by redesignating subsection (g) as subsection (e), and
       (C) by relocating subsection (e), as so redesignated, 
     immediately after subsection (d).
       (2) Special rules.--
       (A) Paragraph (4) of section 41(f) is amended by striking 
     ``and gross receipts''.
       (B) Subsection (f) of section 41 is amended by striking 
     paragraph (6).
       (3) Cross-references.--
       (A) Subparagraph (B) of section 45C(b)(1) is amended--
       (i) by striking ``paragraph (3)(A)'' in clause (ii) and 
     inserting ``paragraph (3)(A)(i)'',
       (ii) by striking the period at the end of clause (ii) and 
     inserting ``, and'',
       (iii) by striking ``and'' at the end of clause (i), and
       (iv) by adding at the end the following new clause:
       ``(iii) by disregarding clauses (ii), (iii), and (iv) of 
     paragraph (3)(A) of such subsection.''.
       (B) Paragraph (2) of section 45C(c) is amended by striking 
     ``base period research expenses'' and inserting ``average 
     qualified research expenses''.
       (C) Subparagraph (A) of section 54(l)(3) is amended by 
     striking ``section 41(g)'' and inserting ``section 41(e)''.
       (D) Clause (i) of section 170(e)(4)(B) is amended by 
     striking ``subparagraph (A) or subparagraph (B) of section 
     41(e)(6)'' and inserting ``clause (i) or clause (ii) of 
     section 41(b)(5)(C)''.
       (E) Section 280C is amended--
       (i) by striking ``or basic research expenses (as defined in 
     section 41(e)(2))'' in subsection (c)(1),
       (ii) by striking ``section 41(a)(1)'' in subsection 
     (c)(2)(A) and inserting ``section 41(a)'', and
       (iii) by striking ``or basic research expenses'' in 
     subsection (c)(2)(B).
       (F) Clause (i) of section 1400N(l)(7)(B) is amended by 
     striking ``section 41(g)'' and inserting ``section 41(e)''.
       (i) Treatment of Research Credit for Certain Startup 
     Companies.--
       (1) In general.--Section 41, as amended by subsections (g) 
     and (h), is amended by adding at the end the following new 
     subsection:
       ``(g) Treatment of Credit for Qualified Small Businesses.--
       ``(1) In general.--At the election of a qualified small 
     business for any taxable year, section 3111(f) shall apply to 
     the payroll tax credit portion of the credit otherwise 
     determined under subsection (a) for the taxable year and such 
     portion shall not be treated (other than for purposes of 
     section 280C) as a credit determined under subsection (a).
       ``(2) Payroll tax credit portion.--For purposes of this 
     subsection, the payroll tax credit portion of the credit 
     determined under subsection (a) with respect to any qualified 
     small business for any taxable year is the least of--
       ``(A) the amount specified in the election made under this 
     subsection,
       ``(B) the credit determined under subsection (a) for the 
     taxable year (determined before the application of this 
     subsection), or
       ``(C) in the case of a qualified small business other than 
     a partnership or S corporation, the amount of the business 
     credit carryforward under section 39 carried from the taxable 
     year (determined before the application of this subsection to 
     the taxable year).
       ``(3) Qualified small business.--For purposes of this 
     subsection--
       ``(A) In general.--The term `qualified small business' 
     means, with respect to any taxable year--
       ``(i) a corporation or partnership, if--

       ``(I) the gross receipts (as determined under the rules of 
     section 448(c)(3), without regard to subparagraph (A) 
     thereof) of such entity for the taxable year is less than 
     $5,000,000, and
       ``(II) such entity did not have gross receipts (as so 
     determined) for any taxable year preceding the 5-taxable-year 
     period ending with such taxable year, and

       ``(ii) any person (other than a corporation or partnership) 
     who meets the requirements of subclauses (I) and (II) of 
     clause (i), determined--

       ``(I) by substituting `person' for `entity' each place it 
     appears, and
       ``(II) by only taking into account the aggregate gross 
     receipts received by such person in carrying on all trades or 
     businesses of such person.

       ``(B) Limitation.--Such term shall not include an 
     organization which is exempt from taxation under section 501.
       ``(4) Election.--
       ``(A) In general.--Any election under this subsection for 
     any taxable year--
       ``(i) shall specify the amount of the credit to which such 
     election applies,
       ``(ii) shall be made on or before the due date (including 
     extensions) of--

       ``(I) in the case of a qualified small business which is a 
     partnership, the return required to be filed under section 
     6031,
       ``(II) in the case of a qualified small business which is 
     an S corporation, the return required to be filed under 
     section 6037, and
       ``(III) in the case of any other qualified small business, 
     the return of tax for the taxable year, and

       ``(iii) may be revoked only with the consent of the 
     Secretary.
       ``(B) Limitations.--
       ``(i) Amount.--The amount specified in any election made 
     under this subsection shall not exceed $250,000.
       ``(ii) Number of taxable years.--A person may not make an 
     election under this subsection if such person (or any other 
     person treated as a single taxpayer with such person under 
     paragraph (5)(A)) has made an election under this subsection 
     for 5 or more preceding taxable years.
       ``(C) Special rule for partnerships and s corporations.--In 
     the case of a qualified small business which is a partnership 
     or S corporation, the election made under this subsection 
     shall be made at the entity level.
       ``(5) Aggregation rules.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     all persons or entities treated as a single taxpayer under 
     subsection (f)(1) shall be treated as a single taxpayer for 
     purposes of this subsection.
       ``(B) Special rules.--For purposes of this subsection and 
     section 3111(f)--
       ``(i) each of the persons treated as a single taxpayer 
     under subparagraph (A) may separately make the election under 
     paragraph (1) for any taxable year, and
       ``(ii) the $250,000 amount under paragraph (4)(B)(i) shall 
     be allocated among all persons treated as a single taxpayer 
     under subparagraph (A) in the same manner as under 
     subparagraph (A)(ii) or (B)(ii) of subsection (f)(1), 
     whichever is applicable.
       ``(6) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary to carry out the purposes of 
     this subsection, including--
       ``(A) regulations to prevent the avoidance of the purposes 
     of the limitations and aggregation rules under this 
     subsection through the use of successor companies or other 
     means,

[[Page 8350]]

       ``(B) regulations to minimize compliance and record-keeping 
     burdens under this subsection, and
       ``(C) regulations for recapturing the benefit of credits 
     determined under section 3111(f) in cases where there is a 
     subsequent adjustment to the payroll tax credit portion of 
     the credit determined under subsection (a), including 
     requiring amended income tax returns in the cases where there 
     is such an adjustment.''.
       (2) Credit allowed against fica taxes.--Section 3111 is 
     amended by adding at the end the following new subsection:
       ``(f) Credit for Research Expenditures of Qualified Small 
     Businesses.--
       ``(1) In general.--In the case of a taxpayer who has made 
     an election under section 41(g) for a taxable year, there 
     shall be allowed as a credit against the tax imposed by 
     subsection (a) for the first calendar quarter which begins 
     after the date on which the taxpayer files the return 
     specified in section 41(g)(4)(A)(ii) an amount equal to the 
     payroll tax credit portion determined under section 41(g)(2).
       ``(2) Limitation.--The credit allowed by paragraph (1) 
     shall not exceed the tax imposed by subsection (a) for any 
     calendar quarter on the wages paid with respect to the 
     employment of all individuals in the employ of the employer.
       ``(3) Carryover of unused credit.--If the amount of the 
     credit under paragraph (1) exceeds the limitation of 
     paragraph (2) for any calendar quarter, such excess shall be 
     carried to the succeeding calendar quarter and allowed as a 
     credit under paragraph (1) for such quarter.
       ``(4) Deduction allowed for credited amounts.--The credit 
     allowed under paragraph (1) shall not be taken into account 
     for purposes of determining the amount of any deduction 
     allowed under chapter 1 for taxes imposed under subsection 
     (a).''.
       (j) Credit Allowed Against Alternative Minimum Tax.--
     Subparagraph (B) of section 38(c)(4) is amended--
       (1) by redesignating clauses (ii), (iii), (iv), (v), (vi), 
     (vii), (viii), and (ix) as clauses (iii), (iv), (v), (vi), 
     (vii), (viii), (ix), and (x), respectively, and
       (2) by inserting after clause (i) the following new clause:
       ``(ii) the credit determined under section 41 with respect 
     to an eligible small business (as defined in paragraph 
     (5)(C), after application of rules similar to the rules of 
     paragraph (5)(D)),''.
       (k) Technical Corrections.--Section 409 is amended--
       (1) by inserting ``, as in effect before the enactment of 
     the Tax Reform Act of 1984)'' after ``section 41(c)(1)(B)'' 
     in subsection (b)(1)(A),
       (2) by inserting ``, as in effect before the enactment of 
     the Tax Reform Act of 1984'' after ``relating to the employee 
     stock ownership credit'' in subsection (b)(4),
       (3) by inserting ``(as in effect before the enactment of 
     the Tax Reform Act of 1984)'' after ``section 41(c)(1)(B)'' 
     in subsection (i)(1)(A),
       (4) by inserting ``(as in effect before the enactment of 
     the Tax Reform Act of 1984)'' after ``section 41(c)(1)(B)'' 
     in subsection (m), and
       (5) by inserting ``(as so in effect)'' after ``section 
     48(n)(1)'' in subsection (m).
       (l) Effective Date.--
       (1) In general.--Except as provided in paragraphs (2), (3), 
     (4), and (5), the amendments made by this section shall apply 
     to taxable years beginning after December 31, 2014.
       (2) Permanent extension.--The amendments made by subsection 
     (g) shall apply to amounts paid or incurred after December 
     31, 2013.
       (3) Treatment of research credit for certain startup 
     companies.--The amendments made by subsection (i) shall apply 
     to credits determined for taxable years beginning after 
     December 31, 2013.
       (4) Credit allowed against alternative minimum tax.--The 
     amendments made by subsection (j) shall apply to credits 
     determined for taxable years beginning after December 31, 
     2013, and to carrybacks of such credits.
       (5) Technical corrections.--The amendments made by 
     subsection (k) shall take effect on the date of the enactment 
     of this Act.
                                 ______
                                 
  SA 3122. Mr. CARPER (for himself, Mr. Cardin, and Mr. Warner) 
submitted an amendment intended to be proposed to amendment SA 3060 
proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal 
Revenue Code of 1986 to allow employers to exempt employees with health 
coverage under TRICARE or the Veterans Administration from being taken 
into account for purposes of the employer mandate under the Patient 
Protection and Affordable Care Act; which was ordered to lie on the 
table; as follows:

       On page 52, strike lines 20 and 21 and insert the 
     following:
       (c) Expansion of Definition of Energy Property to Include 
     Waste Heat to Power Property.--
       (1) In general.--Subparagraph (A) of section 48(a)(3) is 
     amended by striking ``or'' at the end of clause (vi), by 
     striking the comma at the end of clause (vii) and inserting 
     ``, or'', and by inserting after clause (vii) the following 
     new clause:
       ``(viii) waste heat to power property,''.
       (2) 30 percent credit.--Clause (i) of section 48(a)(2)(A) 
     is amended by striking ``and'' at the end of subclause (III) 
     and by inserting after subclause (IV) the following new 
     subclause:

       ``(V) waste heat to power property, and''.

       (3) Waste heat to power property.--Subsection (c) of 
     section 48 is amended by adding at the end the following new 
     paragraph:
       ``(5) Waste heat to power property.--
       ``(A) In general.--The term `waste heat to power property' 
     means property--
       ``(i) comprising a system which generates electricity 
     through the recovery of a qualified waste heat resource, and
       ``(ii) which is placed in service before January 1, 2016.
       ``(B) Qualified waste heat resource.--The term `qualified 
     waste heat resource' means--
       ``(i) exhaust heat or flared gas from an industrial process 
     that does not have, as its primary purpose, the production of 
     electricity, and
       ``(ii) a pressure drop in any gas for an industrial or 
     commercial process.
       ``(C) Limitation.--The term `waste heat to power property' 
     shall not include any property comprising a system if such 
     system has a capacity in excess of 50 megawatt.''.
       (d) Effective Dates.--
       (1) In general.--The amendments made by subsections (a) and 
     (b) shall take effect on January 1, 2014.
       (2) Waste heat to power.--The amendments made by subsection 
     (c) shall apply to periods after the date of the enactment of 
     this Act, in taxable years ending after such date, under 
     rules similar to the rules of section 48(m) of the Internal 
     Revenue Code of 1986 (as in effect on the day before the date 
     of the enactment of the Revenue Reconciliation Act of 1990).
                                 ______
                                 
  SA 3123. Mr. CARPER submitted an amendment intended to be proposed to 
amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend 
the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       On page 18, between lines 17 and 18, insert the following:
       (d) Enhanced Credit for Highly Innovative Research.--
       (1) In general.--Section 41, as amended by this Act, is 
     amended by adding at the end the following new subsection:
       ``(j) Enhanced Credit for Highly Innovative Research.--
       ``(1) In general.--In the case of any qualified research 
     expenses that are certified highly innovative research 
     expenses, subsection (a)(1) shall be applied by substituting 
     `35 percent' for `20 percent'.
       ``(2) Certified highly innovative research expenses.--For 
     purposes of this subsection--
       ``(A) In general.--The term `certified highly innovative 
     research expenses' means any qualified research expenses 
     that--
       ``(i) are paid or incurred during the taxable year for the 
     creation of--

       ``(I) a qualified new product category, or
       ``(II) product technology that represents a significant 
     improvement over previously existing product technology, and

       ``(ii) are certified as provided in subparagraph (D).
       ``(B) Qualified new product category.--The term `qualified 
     new product category' means a category of product that--
       ``(i) has not previously been produced by the taxpayer, and
       ``(ii) incorporates functions that are substantially 
     different from other products previously produced by the 
     taxpayer.
       ``(C) Significant improvement over previously existing 
     product technology.--Product technology satisfies the 
     requirements of subparagraph (A)(i)(II) if such technology is 
     an enhancement of a product that--
       ``(i) requires the use of new techniques or design methods 
     to achieve such enhancement, and
       ``(ii) represents a significant advance in terms of the 
     performance, energy consumption, environmental benefit, 
     public health impact, cost, or size of the product.
       ``(D) Certification by national science foundation or 
     national institutes of health.--
       ``(i) In general.--Qualified research expenses shall not be 
     treated as certified highly innovative research expenses for 
     any taxable year unless such expenses, and the project to 
     which they relate, are certified by--

       ``(I) the National Science Foundation, or
       ``(II) the National Institutes of Health,

     whichever has appropriate jurisdiction over the subject 
     matter to which such expenses relate, as meeting the 
     requirements of subparagraph (A)(i) (and any regulations or

[[Page 8351]]

     guidance issued by the Secretary pursuant to such 
     subparagraph). Such certification shall be provided by the 
     National Science Foundation under the program established by 
     section 111(d)(2) of the EXPIRE Act of 2014, or by the 
     National Institutes of Health under the program established 
     by section 111(d)(3) of such Act, whichever is appropriate, 
     and shall be attached to the return of tax for such taxable 
     year. In no event shall any taxpayer apply for certification 
     to more than one of the entities described in this 
     subparagraph with respect to the same expenses.
       ``(ii) Advance certification.--

       ``(I) In general.--The certification of expenses under 
     clause (i) may be made and provided to the taxpayer not more 
     than 3 taxable years before the first taxable year for which 
     the enhanced credit under this subsection will be claimed 
     with respect to such expenses.
       ``(II) Reapplication.--The National Science Foundation and 
     the National Institutes of Health shall each establish and 
     make publicly available a cap on the number of times a 
     taxpayer who has been denied certification under clause (i) 
     with respect to any qualified research expenses may reapply 
     for certification for such expenses. The cap established by 
     each such entity shall permit not fewer than 1 reapplication 
     with respect to any expenses.

       ``(iii) Duration of certification.--

       ``(I) In general.--The certification under clause (i) shall 
     apply to expenses relating to the same project (as identified 
     in such certification) for not more than 7 consecutive 
     taxable years, beginning with the first taxable year for 
     which the enhanced credit under this subsection is claimed 
     with respect to such expenses.
       ``(II) Supporting documentation.--In the case of a 
     certification that applies for more than 1 taxable year, the 
     Secretary may require the taxpayer to provide such 
     documentation as the Secretary deems necessary to demonstrate 
     that the expenses to which such certification relates 
     continue to meet the requirements of subparagraph (A)(i).

       ``(iv) Limitation on certifications.--

       ``(I) In general.--The total dollar amount of expenses 
     which are certified by each entity under clause (i) 
     (including by means of advance certification under clause 
     (ii)) as highly innovative research expenses for purposes of 
     credits determined in any taxable year shall not exceed 
     $2,000,000,000.
       ``(II) Adjustment for inflation.--In the case of a taxable 
     year beginning after December 31, 2016, the $2,000,000,000 
     amount in subclause (I) shall be increased by an amount equal 
     to the product of such dollar amount and the cost-of-living 
     adjustment determined under section 1(f)(3) for the calendar 
     year, determined by substituting `calendar year 2015' for 
     `calendar year 1992' in subparagraph (B) thereof.
       ``(III) Rounding.--If any amount as adjusted under 
     subclause (II) is not a multiple of $1,000, such amount shall 
     be rounded to the next highest multiple of $1,000.''.

       (2) Certification by national science foundation as highly 
     innovative research and promotion of enhanced credit.--The 
     National Science Foundation Authorization Act of 2002 (Public 
     Law 107-368) is amended by adding at the end the following:

     ``SEC. 27. CERTIFICATION AS HIGHLY INNOVATIVE RESEARCH AND 
                   PROMOTION OF ENHANCED CREDIT.

       ``(a) Certification.--
       ``(1) In general.--The Director shall establish a program 
     that provides certification of research expenses as highly 
     innovative research expenses for purposes of the enhanced 
     credit for highly innovative research under section 41(j) of 
     the Internal Revenue Code of 1986.
       ``(2) Application.--A person that desires to have research 
     expenses certified as highly innovative research expenses for 
     purposes of the enhanced credit for highly innovation 
     research under section 41(j) of the Internal Revenue Code of 
     1986, shall submit to the Director an application containing 
     such request at such time, in such manner, and accompanied by 
     such information as the Director may require.
       ``(3) Review of submissions.--In carrying out paragraph 
     (1), the Director shall establish a review process that 
     involves--
       ``(A) a set group of reviewers from various fields and 
     backgrounds, and
       ``(B) published criteria, developed in consultation with 
     the Secretary of the Treasury and the Secretary of Commerce, 
     in accordance with the requirements of section 41(j)(2)(A)(i) 
     of the Internal Revenue Code of 1986 and any regulations or 
     guidance issued by the Secretary of the Treasury pursuant to 
     such section.
       ``(4) Time for review.--A certification under this 
     subsection shall be denied or approved within 120 days of the 
     submission of the application under paragraph (2) (270 days, 
     in the case of an application for advance certification under 
     section 41(j)(2)(D)(ii) of the Internal Revenue Code of 
     1986).
       ``(b) Promotion of Enhanced Credit for Highly Innovative 
     Research.--The Director shall post on the website of the 
     National Science Foundation information on the enhanced 
     credit for highly innovative research under section 41(j) of 
     the Internal Revenue Code of 1986, and the process for 
     applying for certification of research as highly innovative 
     research.
       ``(c) Confidentiality.--The Director and each reviewer 
     described in subsection (a)(3)(A) shall keep confidential any 
     information provided by a person that desires to have 
     research expenses certified as highly innovative research 
     expenses pursuant to this section.''.
       (3) Certification by national institutes of health as 
     highly innovative research and promotion of enhanced 
     credit.--Part H of title IV of the Public Health Service Act 
     (42 U.S.C. 289 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 498E. CERTIFICATION AS HIGHLY INNOVATIVE RESEARCH AND 
                   PROMOTION OF ENHANCED CREDIT.

       ``(a) Certification.--
       ``(1) In general.--The Director of NIH shall establish a 
     program that provides certification of research expenses as 
     highly innovative research expenses for purposes of the 
     enhanced credit for highly innovative research under section 
     41(j) of the Internal Revenue Code of 1986.
       ``(2) Application.--A person that desires to have research 
     expenses certified as highly innovative research expenses for 
     purposes of the enhanced credit for highly innovative 
     research under section 41(j) of the Internal Revenue Code of 
     1986, shall submit to the Director of NIH an application 
     containing such request at such time, in such manner, and 
     accompanied by such information as the Director may require.
       ``(3) Review of submissions.--In carrying out paragraph 
     (1), the Director shall establish a review process that 
     involves--
       ``(A) a set group of reviewers from various fields and 
     backgrounds, and
       ``(B) published criteria, developed in consultation with 
     the Secretary of the Treasury and the Secretary of Commerce, 
     in accordance with the requirements of section 41(j)(2)(A)(i) 
     of the Internal Revenue Code of 1986 and any regulations or 
     guidance issued by the Secretary of the Treasury pursuant to 
     such section.
       ``(4) Time for review.--A certification under this 
     subsection shall be denied or approved within 120 days of the 
     submission of the application under paragraph (2) (270 days, 
     in the case of an application for advance certification under 
     section 41(j)(2)(D)(ii) of the Internal Revenue Code of 
     1986).
       ``(b) Promotion of Enhanced Credit for Highly Innovative 
     Research.--The Director shall post on the website of the 
     National Institutes of Health information on the enhanced 
     credit for highly innovative research under section 41(j) of 
     the Internal Revenue Code of 1986, and the process for 
     applying for certification of research as highly innovative 
     research.
       ``(c) Confidentiality.--The Director of NIH and each 
     reviewer described in subsection (a)(3)(A) shall keep 
     confidential any information provided by a person that 
     desires to have research expenses certified as highly 
     innovative research expenses pursuant to this section.''.
       (4) Effective date.--The amendment made by paragraph (1) 
     shall apply to expenses paid or incurred in taxable years 
     beginning after December 31, 2015.
                                 ______
                                 
  SA 3124. Mr. CARPER (for himself, Ms. Collins, Mr. Cardin, Mr. 
Menendez, Mr. Brown, Mr. Markey, Mr. Coons, Mr. Schatz, Mr. King, Mr. 
Whitehouse, Ms. Mikulski, and Mr. Reed) submitted an amendment intended 
to be proposed by him to the bill H.R. 3474, to amend the Internal 
Revenue Code of 1986 to allow employers to exempt employees with health 
coverage under TRICARE or the Veterans Administration from being taken 
into account for purposes of the employer mandate under the Patient 
Protection and Affordable Care Act; which was ordered to lie on the 
table; as follows:

       At the end, add the following:

                   TITLE _--OFFSHORE WIND FACILITIES

     SEC. _01. QUALIFYING OFFSHORE WIND FACILITY CREDIT.

       (a) In General.--Section 46 is amended--
       (1) by striking ``and'' at the end of paragraph (5),
       (2) by striking the period at the end of paragraph (6) and 
     inserting ``, and'', and
       (3) by adding at the end the following new paragraph:
       ``(7) the qualifying offshore wind facility credit.''.
       (b) Amount of Credit.--Subpart E of part IV of subchapter A 
     of chapter 1 is amended by inserting after section 48D the 
     following new section:

     ``SEC. 48E. CREDIT FOR OFFSHORE WIND FACILITIES.

       ``(a) In General.--For purposes of section 46, the 
     qualifying offshore wind facility credit for any taxable year 
     is an amount equal to 30 percent of the qualified investment 
     for such taxable year with respect to any qualifying offshore 
     wind facility of the taxpayer.
       ``(b) Qualified Investment.--
       ``(1) In general.--For purposes of subsection (a), the 
     qualified investment for any taxable year is the basis of 
     eligible property placed in service by the taxpayer during 
     such taxable year which is part of a qualifying offshore wind 
     facility.

[[Page 8352]]

       ``(2) Certain qualified progress expenditures rules made 
     applicable.--Rules similar to the rules of subsections (c)(4) 
     and (d) of section 46 (as in effect on the day before the 
     enactment of the Revenue Reconciliation Act of 1990) shall 
     apply for purposes of this section.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Qualifying offshore wind facility.--
       ``(A) In general.--The term `qualifying offshore wind 
     facility' means an offshore facility using wind to produce 
     electricity.
       ``(B) Offshore facility.--The term `offshore facility' 
     means any facility located in the inland navigable waters of 
     the United States, including the Great Lakes, or in the 
     coastal waters of the United States, including the 
     territorial seas of the United States, the exclusive economic 
     zone of United States, and the outer Continental Shelf of the 
     United States.
       ``(2) Eligible property.--The term `eligible property' 
     means any property--
       ``(A) which is--
       ``(i) tangible personal property, or
       ``(ii) other tangible property (not including a building or 
     its structural components), but only if such property is used 
     as an integral part of the qualifying offshore wind facility, 
     and
       ``(B) with respect to which depreciation (or amortization 
     in lieu of depreciation) is allowable.
       ``(d) Qualifying Credit for Offshore Wind Facilities 
     Program.--
       ``(1) Establishment.--
       ``(A) In general.--Not later than 180 days after the date 
     of the enactment of this section, the Secretary, in 
     consultation with the Secretary of Energy and the Secretary 
     of the Interior, shall establish a qualifying credit for 
     offshore wind facilities program to consider and award 
     certifications for qualified investments eligible for credits 
     under this section to qualifying offshore wind facility 
     sponsors.
       ``(B) Limitation.--The total amount of megawatt capacity 
     for offshore facilities with respect to which credits may be 
     allocated under the program shall not exceed 3,000 megawatts.
       ``(2) Certification.--
       ``(A) Application period.--Each applicant for certification 
     under this paragraph shall submit an application containing 
     such information as the Secretary may require beginning on 
     the date the Secretary establishes the program under 
     paragraph (1).
       ``(B) Period of issuance.--An applicant which receives a 
     certification shall have 5 years from the date of issuance of 
     the certification in order to place the facility in service 
     and if such facility is not placed in service by that time 
     period, then the certification shall no longer be valid.
       ``(3) Selection criteria.--In determining which qualifying 
     offshore wind facilities to certify under this section, the 
     Secretary shall--
       ``(A) take into consideration which facilities will be 
     placed in service at the earliest date, and
       ``(B) take into account the technology of the facility that 
     may lead to reduced industry and consumer costs or expand 
     access to offshore wind.
       ``(4) Review, additional allocations, and reallocations.--
       ``(A) Review.--Periodically, but not later than 4 years 
     after the date of the enactment of this section, the 
     Secretary shall review the credits allocated under this 
     section as of the date of such review.
       ``(B) Additional allocations and reallocations.--The 
     Secretary may make additional allocations and reallocations 
     of credits under this section if the Secretary determines 
     that--
       ``(i) the limitation under paragraph (1)(B) has not been 
     attained at the time of the review, or
       ``(ii) scheduled placed-in-service dates of previously 
     certified facilities have been significantly delayed and the 
     Secretary determines the applicant will not meet the timeline 
     pursuant to paragraph (2)(B).
       ``(C) Additional program for allocations and 
     reallocations.--If the Secretary determines that credits 
     under this section are available for further allocation or 
     reallocation, but there is an insufficient quantity of 
     qualifying applications for certification pending at the time 
     of the review, the Secretary is authorized to conduct an 
     additional program for applications for certification.
       ``(5) Disclosure of allocations.--The Secretary shall, upon 
     making a certification under this subsection, publicly 
     disclose the identity of the applicant and the amount of the 
     credit with respect to such applicant.
       ``(e) Denial of Double Benefit.--A credit shall not be 
     allowed under this section with respect to any facility if--
       ``(1) a credit has been allowed to such facility under 
     section 45 for such taxable year or any prior taxable year,
       ``(2) a credit has been allowed with respect to such 
     facility under section 46 by reason of section 48(a) or 
     48C(a) for such taxable or any preceding taxable year, or
       ``(3) a grant has been made with respect to such facility 
     under section 1603 of the American Recovery and Reinvestment 
     Act of 2009.''.
       (c) Conforming Amendments.--
       (1) Section 49(a)(1)(C) is amended--
       (A) by striking ``and'' at the end of clause (v),
       (B) by striking the period at the end of clause (vi) and 
     inserting ``, and'', and
       (C) by adding after clause (vi) the following new clause:
       ``(vii) the basis of any property which is part of a 
     qualifying offshore wind facility under section 48E.''.
       (2) The table of sections for subpart E of part IV of 
     subchapter A of chapter 1 is amended by inserting after the 
     item relating to section 48D the following new item:

``48E. Credit for offshore wind facilities.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to periods after the date of the enactment of 
     this Act, under rules similar to the rules of section 48(m) 
     of the Internal Revenue Code of 1986 (as in effect on the day 
     before the date of the enactment of the Revenue 
     Reconciliation Act of 1990).
                                 ______
                                 
  SA 3125. Mrs. GILLIBRAND submitted an amendment intended to be 
proposed by her to the bill H.R. 3474, to amend the Internal Revenue 
Code of 1986 to allow employers to exempt employees with health 
coverage under TRICARE or the Veterans Administration from being taken 
into account for purposes of the employer mandate under the Patient 
Protection and Affordable Care Act; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

                       TITLE __--OTHER PROVISIONS

     SEC. _01. ABOVE-THE-LINE DEDUCTION FOR CHILD CARE EXPENSES.

       (a) In General.--Part VII of subchapter A of chapter 1 is 
     amended--
       (1) by redesignating section 224 as section 225, and
       (2) by inserting after section 223 the following new 
     section:

     ``SEC. 224. CHILD CARE DEDUCTION.

       ``(a) Allowance of Deduction.--In the case of an individual 
     for which there are 1 or more qualifying children with 
     respect to such individual for the taxable year, there shall 
     be allowed as a deduction an amount equal to the employment-
     related expenses paid by such individual during the taxable 
     year.
       ``(b) Dollar Limitations.--The amount allowed as a 
     deduction under subsection (a) with respect to the taxpayer 
     for any taxable year shall not exceed--
       ``(1) $7,000, if there is 1 qualifying child with respect 
     to the taxpayer for such taxable year, or
       ``(2) $14,000, if there are 2 or more qualifying children 
     with respect to the taxpayer for such taxable year.
       ``(c) Definitions and Special Rules.--For purposes of this 
     section--
       ``(1) Qualifying child.--The term `qualifying child' means 
     a dependent of the taxpayer (as defined in section 
     152(a)(1))--
       ``(A) who has not attained age 13, or
       ``(B) who is physically or mentally incapable of caring for 
     himself or herself.
       ``(2) Employment-related expenses.--The term `employment-
     related expenses' has the meaning given such term by section 
     21(b)(2), applied as if the terms `qualifying child' and 
     `qualifying children,' within the meaning of this section, 
     were substituted for the terms `qualifying individual' and 
     `qualifying individuals', respectively.
       ``(3) Special rules.--Rules similar to the rules of 
     paragraphs (1), (2), (3), (4), (5), (6), (9), and (10) of 
     section 21(e) shall apply.
       ``(d) Denial of Double Benefit.--
       ``(1) In general.--No deduction shall be allowed under this 
     section for any expense with respect to which a credit is 
     claimed by the taxpayer under section 21.
       ``(2) Coordination rule.--For coordination with a dependent 
     care assistance program, see section 129(e)(7).
       ``(e) Termination.--This section shall not apply to any 
     taxable year beginning after December 31, 2015.''.
       (b) Deduction Allowed Above-the-Line.--Subsection (a) of 
     section 62 is amended by inserting after paragraph (21) the 
     following new paragraph:
       ``(22) Child care deduction.--The deduction allowed by 
     section 224.''.
       (c) Conforming Amendment.--Subsection (e) of section 213 is 
     amended by inserting ``, or as a deduction under section 
     224,'' after ``section 21''.
       (d) Clerical Amendment.--The table of sections for part VII 
     of subchapter A of chapter 1 is amended by striking the item 
     relating to section 224 and by inserting the following new 
     items:

``Sec. 224. Child care deduction.
``Sec. 225. Cross reference.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to expenses paid or incurred in taxable years 
     beginning after December 31, 2014.
                                 ______
                                 
  SA 3126. Ms. CANTWELL (for herself, Mr. Thune, Mr. Cornyn, Mr. 
Nelson, Mrs. Murray, and Mr. Enzi) submitted

[[Page 8353]]

an amendment intended to be proposed to amendment SA 3060 proposed by 
Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 
1986 to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       Beginning on page 8, strike line 19 and all that follows 
     through page 9, line 3 and insert the following:

     SEC. 106. PERMANENT EXTENSION OF DEDUCTION FOR STATE AND 
                   LOCAL GENERAL SALES TAXES.

       (a) In General.--Subparagraph (I) of section 164(b)(5) is 
     amended by striking ``, and before January 1, 2014''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.
                                 ______
                                 
  SA 3127. Ms. CANTWELL (for herself, Mr. Bennet, Ms. Stabenow, Mr. 
Menendez, Mr. Cardin, Mr. Brown, Mr. Nelson, and Mr. Carper) submitted 
an amendment intended to be proposed by her to the bill H.R. 3474, to 
amend the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       On page _, between lines _ and _, insert the following:
       (c) Extension for Solar Energy Facilities.--Section 
     45(d)(4)(A) is amended by inserting ``or the construction of 
     which begins after December 31, 2013, and before January 1, 
     2016,'' after ``2006,''.
                                 ______
                                 
  SA 3128. Mr. MARKEY submitted an amendment intended to be proposed by 
him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                       TITLE __--OTHER PROVISIONS

     SEC. _01. BUILD AMERICA BONDS MADE PERMANENT.

       (a) In General.--Subparagraph (B) of section 54AA(d)(1) is 
     amended by inserting ``or during a period beginning on or 
     after the date of the enactment of the EXPIRE Act of 2014,'' 
     after ``January 1, 2011,''.
       (b) Reduction in Credit Percentage to Bondholders.--
     Subsection (b) of section 54AA is amended to read as follows:
       ``(b) Amount of Credit.--
       ``(1) In general.--The amount of the credit determined 
     under this subsection with respect to any interest payment 
     date for a build America bond is the applicable percentage of 
     the amount of interest payable by the issuer with respect to 
     such date.
       ``(2) Applicable percentage.--For purposes of paragraph 
     (1), the applicable percentage shall be determined under the 
     following table:

``In the case of a bond issued during caleThe applicable percentage is:
  2009 or 2010......................................................35 
  2014..............................................................31 
  2015..............................................................30 
  2016..............................................................29 
  2017 and thereafter............................................28.''.
       (c) Special Rules.--Subsection (f) of section 54AA is 
     amended by adding at the end the following new paragraph:
       ``(3) Application of other rules.--
       ``(A) In general.--Notwithstanding any other provision of 
     law, a build America bond shall be considered a recovery zone 
     economic development bond (as defined in section 1400U-2) for 
     purposes of application of section 1601 of title I of 
     division B of Public Law 111-5 (26 U.S.C. 54C note).
       ``(B) Public transportation projects.--Recipients of any 
     financial assistance authorized under this section that funds 
     public transportation projects, as defined in Title 49, 
     United States Code, must comply with the grant requirements 
     described under section 5309 of such title.''.
       (d) Extension of Payments to Issuers.--
       (1) In general.--Section 6431 is amended--
       (A) by inserting ``or during a period beginning on or after 
     the date of the enactment of the EXPIRE Act of 2014,'' after 
     ``January 1, 2011,'' in subsection (a), and
       (B) by striking ``before January 1, 2011'' in subsection 
     (f)(1)(B) and inserting ``during a particular period''.
       (2) Conforming amendments.--Subsection (g) of section 54AA 
     is amended--
       (A) by inserting ``or during a period beginning on or after 
     the date of the enactment of the EXPIRE Act of 2014,'' after 
     ``January 1, 2011,'', and
       (B) by striking ``Qualified Bonds Issued Before 2011'' in 
     the heading and inserting ``Certain Qualified Bonds''.
       (e) Reduction in Percentage of Payments to Issuers.--
     Subsection (b) of section 6431 is amended--
       (1) by striking ``The Secretary'' and inserting the 
     following:
       ``(1) In general.--The Secretary'',
       (2) by striking ``35 percent'' and inserting ``the 
     applicable percentage'', and
       (3) by adding at the end the following new paragraph:
       ``(2) Applicable percentage.--For purposes of this 
     subsection, the term `applicable percentage' means the 
     percentage determined in accordance with the following table:

``In the case of a qualified bond issued dThe applicable percentage is:
  2009 or 2010......................................................35 
  2014..............................................................31 
  2015..............................................................30 
  2016..............................................................29 
  2017 and thereafter............................................28.''.
       (f) Current Refundings Permitted.--Subsection (g) of 
     section 54AA is amended by adding at the end the following 
     new paragraph:
       ``(3) Treatment of current refunding bonds.--
       ``(A) In general.--For purposes of this subsection, the 
     term `qualified bond' includes any bond (or series of bonds) 
     issued to refund a qualified bond if--
       ``(i) the average maturity date of the issue of which the 
     refunding bond is a part is not later than the average 
     maturity date of the bonds to be refunded by such issue,
       ``(ii) the amount of the refunding bond does not exceed the 
     outstanding amount of the refunded bond, and
       ``(iii) the refunded bond is redeemed not later than 90 
     days after the date of the issuance of the refunding bond.
       ``(B) Applicable percentage.--In the case of a refunding 
     bond referred to in subparagraph (A), the applicable 
     percentage with respect to such bond under section 6431(b) 
     shall be the lowest percentage specified in paragraph (2) of 
     such section.
       ``(C) Determination of average maturity.--For purposes of 
     subparagraph (A)(i), average maturity shall be determined in 
     accordance with section 147(b)(2)(A).
       ``(D) Issuance restriction not applicable.--Subsection 
     (d)(1)(B) shall not apply to a refunding bond referred to in 
     subparagraph (A).''.
       (g) Clarification Related to Levees and Flood Control 
     Projects.--Subparagraph (A) of section 54AA(g)(2) is amended 
     by inserting ``(including capital expenditures for levees and 
     other flood control projects)'' after ``capital 
     expenditures''.
       (h) Gross-Up of Payment to Issuers in Case of 
     Sequestration.--In the case of any payment under section 
     6431(b) of the Internal Revenue Code of 1986 made after the 
     date of the enactment of this Act to which sequestration 
     applies, the amount of such payment shall be increased to an 
     amount equal to--
       (1) such payment (determined before such sequestration), 
     multiplied by
       (2) the quotient obtained by dividing 1 by the amount by 
     which 1 exceeds the percentage reduction in such payment 
     pursuant to such sequestration.
     For purposes of this subsection, the term ``sequestration'' 
     means any reduction in direct spending ordered in accordance 
     with a sequestration report prepared by the Director of the 
     Office and Management and Budget pursuant to the Balanced 
     Budget and Emergency Deficit Control Act of 1985 or the 
     Statutory Pay-As-You-Go Act of 2010.
       (i) Effective Date.--The amendments made by this section 
     shall apply to obligations issued on or after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 3129. Ms. STABENOW (for herself, Mr. Brown, Mr. Roberts, and Mr. 
Blunt) submitted an amendment intended to be proposed to amendment SA 
3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal 
Revenue Code of 1986 to allow employers to exempt employees with health 
coverage under TRICARE or the Veterans Administration from being taken 
into account for purposes of the employer mandate under the Patient 
Protection and Affordable Care Act; which was ordered to lie on the 
table; as follows:

       On page 30, strike line 19 and insert the following:
     tion 125(c) of such Act).
       ``(iv) Special maximum increase amount.--In the case of 
     round 4 extension property placed in service by a 
     corporation--

       ``(I) subparagraph (C)(iii) shall not apply, and
       ``(II) the term `maximum increase amount' means an amount 
     that is 50 percent of the AMT credit increase amount 
     determined with respect to such corporation under 
     subparagraph (E) by substituting `December 31,

[[Page 8354]]

     2013' for `March 31, 2008' and by substituting `January 1, 
     2011' for `January 1, 2006'.''.

                                 ______
                                 
  SA 3130. Mr. PRYOR submitted an amendment intended to be proposed to 
amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend 
the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       On page 6, between lines 20 and 21, insert the following:
       (b) Increase in Limitation.--
       (1) In general.--Section 62(a)(2)(D) is amended by striking 
     ``$250'' and inserting ``$350''.
       (2) Inflation adjustment.--Section 62 is amended by adding 
     at the end the following new subsection:
       ``(f) Inflation Adjustment for Educator Expenses.--
       ``(1) In general.--In the case of any taxable year 
     beginning in a calendar year after 2014, the $350 amount 
     under subsection (a)(2)(D) shall be increased by an amount 
     equal to--
       ``(A) such dollar amount, multiplied by
       ``(B) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year by substituting 
     `calendar year 2013' for `calendar year 1992' in subparagraph 
     (B) thereof.
       ``(2) Rounding.--If the amount as adjusted under the 
     preceding sentence is not a multiple of $10,, such amount 
     shall be rounded to the next lowest multiple of $10.''.
                                 ______
                                 
  SA 3131. Mr. PRYOR (for himself and Mr. Boozman) submitted an 
amendment intended to be proposed by him to the bill H.R. 3474, to 
amend the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                        TITLE--OTHER PROVISIONS

     SEC. _01. TREATMENT OF TIMBER GAINS.

       (a) 2-year Special Rate.--Paragraph (1) of section 1201(b) 
     is amended by striking ``ending after the date'' and all that 
     follows through ``after such date'' and inserting ``beginning 
     after December 31, 2013, and before January 1, 2016''.
       (b) Adjustment of Special Rate.--
       (1) In general.--Clause (i) of section 1201(b)(1)(B) is 
     amended by striking ``15 percent'' and inserting ``20 
     percent''.
       (2) Conforming amendment.--Section 55(b) is amended by 
     striking paragraph (4).
       (c) Conforming Amendment.--Subsection (b) of section 1201 
     is amended by striking paragraph (3).
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.
                                 ______
                                 
  SA 3132. Mr. KING (for himself, Ms. Collins, Mrs. Shaheen, and Mr. 
Begich) submitted an amendment intended to be proposed by him to the 
bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow 
employers to exempt employees with health coverage under TRICARE or the 
Veterans Administration from being taken into account for purposes of 
the employer mandate under the Patient Protection and Affordable Care 
Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                        TITLE--OTHER PROVISIONS

     SEC. __. CREDITS RELATING TO BIOMASS PROPERTY.

       (a) Residential Energy-efficient Property Credit for 
     Biomass Fuel Property Expenditures.--
       (1) Allowance of credit.--Subsection (a) of section 25D is 
     amended--
       (A) by striking ``and'' at the end of paragraph (4),
       (B) by striking the period at the end of paragraph (5) and 
     inserting ``, and'', and
       (C) by adding at the end the following new paragraph:
       ``(6) 30 percent of the qualified biomass fuel property 
     expenditures made by the taxpayer during such year.''.
       (2) Qualified biomass fuel property expenditures.--
     Subsection (d) of section 25D is amended by adding at the end 
     the following new paragraph:
       ``(6) Qualified biomass fuel property expenditure.--
       ``(A) In general.--The term `qualified biomass fuel 
     property expenditure' means an expenditure for property--
       ``(i) which uses the burning of biomass fuel to heat a 
     dwelling unit located in the United States and used as a 
     residence by the taxpayer, or to heat water for use in such a 
     dwelling unit, and
       ``(ii) which has a thermal efficiency rating of at least 75 
     percent (measured by the higher heating value of the fuel).
       ``(B) Biomass fuel.--For purposes of this section, the term 
     `biomass fuel' means any plant-derived fuel available on a 
     renewable or recurring basis, including agricultural crops 
     and trees, wood and wood waste and residues, plants 
     (including aquatic plants), grasses, residues, and fibers. 
     Such term includes densified biomass fuels such as wood 
     pellets.''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to expenditures paid or incurred in taxable years 
     beginning after December 31, 2013.
       (b) Investment Tax Credit for Biomass Heating Property.--
       (1) In general.--Subparagraph (A) of section 48(a)(3) is 
     amended by striking ``or'' at the end of clause (vi), by 
     inserting ``or'' at the end of clause (vii), and by inserting 
     after clause (vii) the following new clause:
       ``(viii) open-loop biomass (within the meaning of section 
     45(c)(3)) heating property, including boilers or furnaces 
     which operate at thermal output efficiencies of not less than 
     65 percent (measured by the higher heating value of the fuel) 
     and which provide thermal energy in the form of heat, hot 
     water, or steam for space heating, air conditioning, domestic 
     hot water, or industrial process heat, but only with respect 
     to periods ending before January 1, 2017,''.
       (2) 30 percent and 15 percent credits.--
       (A) In general.--Subparagraph (A) of section 48(a)(2) is 
     amended--
       (i) by redesignating clause (ii) as clause (iii),
       (ii) by inserting after clause (i) the following new 
     clause:
       ``(ii) except as provided in clause (i)(V), 15 percent in 
     the case of energy property described in paragraph 
     (3)(A)(viii), and'', and
       (iii) by inserting ``or (ii)'' after ``clause (i)'' in 
     clause (iii), as so redesignated.
       (B) Increased credit for greater efficiency.--Clause (i) of 
     section 48(a)(2)(A) is amended by striking ``and'' at the end 
     of subclause (III) and by inserting after subclause (IV) the 
     following new subclause:

       ``(V) energy property described in paragraph (3)(A)(viii) 
     which operates at a thermal output efficiency of not less 
     than 80 percent (measured by the higher heating value of the 
     fuel),''.

       (3) Effective date.--The amendments made by this subsection 
     shall apply to periods after the date of the enactment of 
     this Act, in taxable years ending after such date, under 
     rules similar to the rules of section 48(m) of the Internal 
     Revenue Code of 1986 (as in effect on the day before the date 
     of the enactment of the Revenue Reconciliation Act of 1990).
                                 ______
                                 
  SA 3133. Mr. BLUMENTHAL submitted an amendment intended to be 
proposed by him to the bill H.R. 3474, to amend the Internal Revenue 
Code of 1986 to allow employers to exempt employees with health 
coverage under TRICARE or the Veterans Administration from being taken 
into account for purposes of the employer mandate under the Patient 
Protection and Affordable Care Act; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

                        TITLE--OTHER PROVISIONS

     SEC. _01. NATIONAL SCENIC TRAIL CONSERVATION CREDIT.

       (a) In General.--Subpart B of part IV of subchapter A of 
     chapter 1 is amended by adding at the end the following new 
     section:

     ``SEC. 30E. NATIONAL SCENIC TRAIL CONSERVATION CREDIT.

       ``(a) Allowance of Credit.--There shall be allowed as a 
     credit against the tax imposed by this chapter for the 
     taxable year an amount equal to the fair market value of any 
     National Scenic Trail conservation contribution of the 
     taxpayer for the taxable year.
       ``(b) National Scenic Trail Conservation Contribution.--For 
     purposes of this section--
       ``(1) In general.--The term `National Scenic Trail 
     conservation contribution' means any qualified conservation 
     contribution--
       ``(A) to the extent the qualified real property interest 
     with respect to such contribution includes a National Scenic 
     Trail (or portion thereof) and its trail corridor, and
       ``(B) with respect to which the taxpayer makes an election 
     under this section.
       ``(2) National scenic trail.--The term `National Scenic 
     Trail' means any trail authorized and designated under 
     section 5 of the National Trails System Act (16 U.S.C. 1244), 
     but only if such trail is at least 200 miles in length.
       ``(3) Trail corridor.--The term `trail corridor' means so 
     much of the corridor of a trail as is--
       ``(A) not less than--
       ``(i) 150 feet wide on each side of such trail, or

[[Page 8355]]

       ``(ii) in the case of an interest in real property of the 
     taxpayer which includes less than 150 feet on either side of 
     such trail, the entire distance with respect to such interest 
     on such side, and
       ``(B) not greater than 2,640 feet wide.
       ``(4) Qualified conservation contribution; qualified real 
     property interest.--The terms `qualified conservation 
     contribution' and `qualified real property interest' have the 
     respective meanings given such terms by section 170(h), 
     except that paragraph (2)(A) thereof shall be applied without 
     regard to any qualified mineral interest (as defined in 
     paragraph (6) thereof).
       ``(c) Special Rules.--
       ``(1) Fair market value.--Fair market value of any National 
     Scenic Trail conservation contribution shall be determined 
     under rules similar to the valuation rules under Treasury 
     Regulations under section 170, except that in any case, to 
     the extent practicable, fair market value shall be determined 
     by reference to the highest and best use of the real property 
     with respect to such contribution.
       ``(2) Election irrevocable.--An election under this section 
     may not be revoked.
       ``(3) Denial of double benefit.--No deduction shall be 
     allowed under this chapter with respect to any qualified 
     conservation contribution with respect to which an election 
     is made under this section.
       ``(d) Limitation Based on Amount of Tax; Carryforward of 
     Unused Credit.--
       ``(1) Limitation.--The credit allowed under subsection (a) 
     for any taxable year shall not exceed the sum of--
       ``(A) the taxpayer's regular tax liability (as defined in 
     section 26(b)) for the taxable year reduced by the sum of the 
     credits allowable under subpart A and sections 27, 30, 30B, 
     30C, and 30D, plus
       ``(B) the tax imposed by section 55.
       ``(2) Carryforward.--
       ``(A) In general.--If the credit allowable under subsection 
     (a) exceeds the limitation imposed by paragraph (1) for any 
     taxable year, such excess shall be carried to the succeeding 
     taxable year and added to the credit allowable under 
     subsection (a) for such succeeding taxable year.
       ``(B) Limitation.--No credit may be carried forward under 
     this subsection to any taxable year following the tenth 
     taxable year after the taxable year in which the credit 
     arose. For purposes of the preceding sentence, credits shall 
     be treated as used on a first-in first-out basis.''.
       (b) Continued Use Not Inconsistent With Conservation 
     Purposes.--A contribution of an interest in real property 
     shall not fail to be treated as a National Scenic Trail 
     conservation contribution (as defined in section 30E(b) of 
     the Internal Revenue Code of 1986) solely by reason of 
     continued use of the real property, such as for recreational 
     or agricultural use (including motor vehicle use related 
     thereto), if, under the circumstances, such use does not 
     impair significant conservation interests and is not 
     inconsistent with the purposes of the National Trails System 
     Act (16 U.S.C. 1241 et seq.).
       (c) Study Regarding Efficacy of National Scenic Trail 
     Conservation Credit.--
       (1) In general.--The Secretary of the Interior shall, in 
     consultation with the Secretary of the Treasury, study--
       (A) the efficacy of the National Scenic Trail conservation 
     credit under section 30E of the Internal Revenue Code of 1986 
     in completing, extending, and increasing the number of 
     National Scenic Trails (as defined in section 30E(b) of such 
     Code), and
       (B) the feasibility and estimated costs and benefits of--
       (i) making such credit refundable (in whole or in part), 
     and
       (ii) allowing transfer of such credit.
       (2) Report.--Not later than 4 years after the date of the 
     enactment of this Act, the Secretary of the Interior shall 
     submit a report to Congress on the results of the study 
     conducted under this subsection.
       (d) Conforming Amendment.--The table of sections for 
     subpart B of part IV of subchapter A of chapter 1 of such 
     Code is amended by adding at the end the following new item:

``30E. National Scenic Trail conservation credit.''.

       (e) Effective Date.--The amendments made by this section 
     shall apply to contributions made after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 3134. Mr. BLUMENTHAL submitted an amendment intended to be 
proposed by him to the bill H.R. 3474, to amend the Internal Revenue 
Code of 1986 to allow employers to exempt employees with health 
coverage under TRICARE or the Veterans Administration from being taken 
into account for purposes of the employer mandate under the Patient 
Protection and Affordable Care Act; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

                        TITLE--OTHER PROVISIONS

     SEC. _01. EXTENSION OF TIME PERIOD FOR CONTRIBUTING MILITARY 
                   DEATH GRATUITIES TO ROTH IRAS AND COVERDELL 
                   EDUCATION SAVINGS ACCOUNTS.

       (a) In General.--Sections 408A(e)(2)(A) and 530(d)(9)(A) 
     are each amended by striking ``1-year period'' and inserting 
     ``3-year period''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to amounts received under section 1477 of title 
     10, United States Code, or under section 1967 of title 38 of 
     the Internal Revenue Code of 1986 after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 3135. Mr. BENNET (for himself and Mr. Crapo) submitted an 
amendment intended to be proposed to amendment SA 3060 proposed by Mr. 
Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the end, add the following:

                        TITLE--OTHER PROVISIONS

     SEC. _01. FACILITATE WATER LEASING AND WATER TRANSFERS TO 
                   PROMOTE CONSERVATION AND EFFICIENCY.

       (a) In General.--Paragraph (12) of section 501(c) is 
     amended by adding at the end the following new subparagraph:
       ``(I) Treatment of mutual ditch irrigation companies.--
       ``(i) In general.--In the case of a mutual ditch or 
     irrigation company or like organization, subparagraph (A) 
     shall be applied without taking into account any income 
     received or accrued--

       ``(I) from the sale, lease, or exchange of fee or other 
     interests in real property, including interests in water,
       ``(II) from the sale or exchange of stock in a mutual ditch 
     or irrigation company or like organization or contract rights 
     for the delivery or use of water, or
       ``(III) from the investment of proceeds from sales, leases, 
     or exchanges under subclauses (I) and (II),

     except that any income received under subclause (I), (II), or 
     (III) which is distributed or expended for expenses (other 
     than for operations, maintenance, and capital improvements) 
     of the mutual ditch or irrigation company or like 
     organization shall be treated as nonmember income in the year 
     in which it is distributed or expended. For purposes of the 
     preceding sentence, expenses (other than for operations, 
     maintenance, and capital improvements) include expenses for 
     the construction of conveyances designed to deliver water 
     outside of the mutual ditch or irrigation company or like 
     organization system.
       ``(ii) Treatment of organizational governance.--In the case 
     of a mutual ditch or irrigation company or like organization, 
     where State law provides that such a company or organization 
     may be organized in a manner that permits voting on a basis 
     which is pro rata to share ownership on corporate governance 
     matters, subparagraph (A) shall be applied without taking 
     into account whether its member shareholders have one vote on 
     corporate governance matters per share held in the 
     corporation. Nothing in this clause shall be construed to 
     create any inference about the requirements of this 
     subsection for companies or organizations not included in 
     this clause.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 3136. Mr. KING submitted an amendment intended to be proposed to 
amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend 
the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the appropriate place in the amendment, insert the 
     following:

     SEC. __. REQUIREMENTS WITH RESPECT TO MEDICAL DEVICE PRICING.

       (a) Prohibition on Confidentiality Clauses With Respect to 
     Pricing.--A medical device manufacturer may not require 
     hospitals or other buyers to sign purchasing agreements that 
     contain confidentiality clauses restricting such hospitals or 
     buyers from revealing to third parties the prices paid for 
     medical devices.
       (b) Reporting on Sales Prices.--The Secretary of Health and 
     Human Services shall require medical device manufacturers to 
     submit to such Secretary a quarterly report on the average 
     and median sales prices of covered devices, as defined in 
     section 1128G(e) of the Social Security Act.
                                 ______
                                 
  SA 3137. Mr. NELSON submitted an amendment intended to be proposed by 
him to the bill H.R. 3474, to amend the

[[Page 8356]]

Internal Revenue Code of 1986 to allow employers to exempt employees 
with health coverage under TRICARE or the Veterans Administration from 
being taken into account for purposes of the employer mandate under the 
Patient Protection and Affordable Care Act; which was ordered to lie on 
the table; as follows:

       At the appropriate place, insert the following:

             TITLE--IDENTITY THEFT AND TAX FRAUD PREVENTION

      Subtitle A--Protecting Victims of Tax-related Identity Theft

     SEC. _01. EXPEDITED REFUNDS FOR IDENTITY THEFT VICTIMS.

       Not later than 180 days after the date of enactment of this 
     Act, the Secretary of the Treasury, or the Secretary's 
     delegate, shall establish a plan of action to reduce the 
     administrative time required to process and resolve cases of 
     identity theft in connection with tax returns, including the 
     issuance of refunds to legitimate taxpayers, to no more than 
     90 days, on average.

     SEC. _02. SINGLE POINT OF CONTACT FOR IDENTITY THEFT VICTIMS.

       Not later than 180 days after the date of enactment of this 
     Act, the Secretary of the Treasury, or the Secretary's 
     delegate, shall establish new procedures to ensure that any 
     taxpayer whose return has been delayed or otherwise adversely 
     affected due to identity theft has a single point of contact 
     at the Internal Revenue Service throughout the processing of 
     his or her case. The single point of contact shall track the 
     case of the taxpayer from start to finish and coordinate with 
     other specialized units to resolve case issues as quickly as 
     possible.

     SEC. _03. ENHANCEMENTS TO IRS PIN PROGRAM.

       (a) In General.--The Secretary of the Treasury, or the 
     Secretary's delegate, shall issue a personal identification 
     number to any individual requesting protection from identity 
     theft-related tax fraud after the individual's true identity 
     has been established and verified.
       (b) Report.--Not later than 360 days after the date of 
     enactment of this Act, the Secretary of the Treasury shall 
     submit to Congress a report analyzing the effectiveness of 
     the program described in subsection (a) in reducing tax 
     fraud.

     SEC. _04. ELECTRONIC FILING OPT OUT.

       Not later than 180 days after the date of enactment of this 
     Act, the Secretary of the Treasury, or the Secretary's 
     delegate, shall implement a program under which a person who 
     has filed an identity theft affidavit with the Secretary may 
     elect to prevent the processing of any Federal tax return 
     submitted in an electronic format by a person purporting to 
     be such a person.

     SEC. _05. TAXPAYER NOTIFICATION OF SUSPECTED IDENTITY THEFT.

       (a) In General.--Chapter 77 is amended by adding at the end 
     the following new section:

     ``SEC. 7529. NOTIFICATION OF SUSPECTED IDENTITY THEFT.

       ``If the Secretary determines that there was an 
     unauthorized use of the identity of any taxpayer, the 
     Secretary shall--
       ``(1) as soon as practicable and without jeopardizing an 
     investigation relating to tax administration, notify the 
     taxpayer, and
       ``(2) if any person is criminally charged by indictment or 
     information relating to such unauthorized use, notify such 
     taxpayer as soon as practicable of such charge.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     77 is amended by adding at the end the following new item:

``Sec. 7529. Notification of suspected identity theft.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to determinations made after the date of the 
     enactment of this Act.

 Subtitle B--Shutting Down Abusive Identity Theft and Tax Fraud Schemes

     SEC. _11. RESTRICTIONS ON ABILITY TO USE PREPAID CARDS FOR 
                   TAX FRAUD.

       (a) Accounts With Elevated Risk of Identity Theft.--
       (1) In general.--Not later than 360 days after the date of 
     the enactment of this Act, the Federal primary financial 
     regulatory agencies, in consultation with the Secretary of 
     the Treasury, shall jointly prescribe regulations requiring 
     newly issued deposit or transaction account numbers, as the 
     case may be, to be distinguishable between verified accounts 
     and at-risk accounts.
       (2) Definitions.--As used in this section--
       (A) the term ``at-risk account'' means any deposit account 
     or transaction account, including accounts associated with a 
     prepaid access arrangement, that is not a verified account;
       (B) the term ``primary financial regulatory agency'' has 
     the same meaning as in section 2(12) of the Dodd-Frank Wall 
     Street Reform and Consumer Protection Act (12 U.S.C. 
     5301(12)); and
       (C) the term ``verified account'' means any deposit account 
     or transaction account in which the identity of the account 
     holder and any prepaid access customer associated with the 
     account is verified by--
       (i) customer identification procedures that comply with 
     section 5318(l) of title 31, United States Code; and
       (ii) direct review of an original, unexpired government-
     issued form of identification bearing a photograph or similar 
     safeguard, such as a driver's license or passport.
       (b) GAO Audit of Debit Card Issuers To Ensure Compliance 
     With Customer Identification Requirements.--
       (1) Review and evaluation.--The Comptroller General of the 
     United States shall review and evaluate the effectiveness of 
     the current Customer Identification Program rules 
     implementing the customer identification program requirements 
     under section 5318(l) of title 31, United States Code, as 
     such rules apply to the prepaid card industry.
       (2) Required considerations.--The review and evaluation 
     required under paragraph (1) shall--
       (A) consider whether weaknesses in current customer 
     identification programs are contributing to identity theft 
     and financial loss, particularly with respect to tax fraud; 
     and
       (B) review whether--
       (i) current risk-based standards for customer 
     identification are the best means to prevent criminal use of 
     prepaid cards and provide sufficient guidance and certainty 
     to the sellers and providers of prepaid access;
       (ii) current exclusions from customer identification 
     requirements, such as exclusions for government benefit 
     programs, are appropriate; and
       (iii) Federal regulatory agencies exercise adequate 
     oversight and supervision of customer identification 
     practices of the prepaid card industry.
       (3) Report to congress.--Not later than 360 days after the 
     date of the enactment this Act, the Comptroller General of 
     the United States shall submit to Congress a report--
       (A) on the findings of the review and evaluation required 
     under paragraph (1); and
       (B) containing any recommendations or proposals for 
     legislative or administrative action to improve the customer 
     identification practices of the prepaid card industry.

     SEC. _12. LIMITATION ON MULTIPLE TAX REFUNDS TO THE SAME 
                   ACCOUNT.

       (a) In General.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of the Treasury, or the 
     Secretary's delegate, shall issue regulations that restrict 
     the delivery or deposit of multiple tax refunds from the same 
     tax year to the same individual account or mailing address.
       (b) Exception.--The regulation promulgated under subsection 
     (a) shall provide that the restrictions shall not apply in 
     cases and situations where the Secretary determines there is 
     not a likelihood of tax fraud.

    Subtitle C--Adding Critical New Protections to Safeguard Social 
                            Security Numbers

     SEC. _21. PROHIBITING THE DISPLAY OF SOCIAL SECURITY ACCOUNT 
                   NUMBERS ON NEWLY ISSUED MEDICARE IDENTIFICATION 
                   CARDS AND COMMUNICATIONS PROVIDED TO MEDICARE 
                   BENEFICIARIES.

       (a) In General.--Not later than 2 years after the date of 
     the enactment of this Act, the Secretary of Health and Human 
     Services, in consultation with the Commissioner of Social 
     Security, shall establish and begin to implement procedures 
     to eliminate the unnecessary collection, use, and display of 
     Social Security account numbers of Medicare beneficiaries.
       (b) Newly Issued Medicare Cards and Communications Provided 
     to Beneficiaries.--
       (1) Newly issued cards.--
       (A) In general.--Not later than 4 years after the date of 
     enactment of this Act, the Secretary of Health and Human 
     Services, in consultation with the Commissioner of Social 
     Security, shall ensure that each newly issued Medicare 
     identification card meets the requirements described in 
     subparagraph (B).
       (B) Requirements.--
       (i) In general.--Subject to clauses (ii) and (iii), the 
     requirements described in this subparagraph are, with respect 
     to a Medicare identification card, that the card does not 
     display or electronically store (in an unencrypted format) a 
     Medicare beneficiary's Social Security account number.
       (ii) Exception.--The Secretary may waive the requirements 
     under clause (i) in the case where the health insurance claim 
     number of a beneficiary is the Social Security number of the 
     beneficiary, the beneficiary's spouse, or another individual.
       (iii) Use of partial account number.--The Secretary of 
     Health and Human Services, in consultation with the 
     Commissioner of Social Security, may provide for the use of a 
     partial Social Security account number on a Medicare 
     identification card if the Secretary determines that such use 
     does not allow an unacceptable risk of fraudulent use.
       (2) Communications provided to beneficiaries.--Not later 
     than 4 years after the date of enactment of this Act, the 
     Secretary of Health and Human Services shall prohibit the 
     display of a Medicare beneficiary's Social Security account 
     number on written or electronic communication provided to the 
     beneficiary unless the Secretary, in consultation with the 
     Commissioner of Social Security, determines that inclusion of 
     Social Security account numbers on such communications is 
     essential for the operation of the Medicare program.

[[Page 8357]]

       (c) Medicare Beneficiary Defined.--In this section, the 
     term ``Medicare beneficiary'' means an individual entitled 
     to, or enrolled for, benefits under part A of title XVIII of 
     the Social Security Act (42 U.S.C. 1395c et seq.) or enrolled 
     for benefits under part B of such title (42 U.S.C. 1395j et 
     seq.).
       (d) Conforming Amendments.--
       (1) Reference in the social security act.--Section 
     205(c)(2)(C) of the Social Security Act (42 U.S.C. 
     405(c)(2)(C)) is amended--
       (A) by moving clause (x), as added by section 1414(a)(2) of 
     the Patient Protection and Affordable Care Act (Public Law 
     111-148), 6 ems to the left;
       (B) by redesignating clause (x), as added by section 
     2(a)(1) of the Social Security Number Protection Act of 2010 
     (42 U.S.C. 1305 note), as clause (xii); and
       (C) by adding after clause (xii), as redesignated by 
     subparagraph (B), the following new clause:
       ``(xiii) Subject to the EXPIRE Act of 2014, social security 
     account numbers shall not be displayed on Medicare 
     identification cards or on communications provided to 
     Medicare beneficiaries.''.
       (2) Access to information.--Section 205(r) of the Social 
     Security Act (42 U.S.C. 405(r)) is amended by adding at the 
     end the following new paragraph:
       ``(10) To prevent and identify fraudulent activity, the 
     Commissioner shall upon the request of the Attorney General 
     or upon the request of the Secretary of Health and Human 
     Services enter into a reimbursable agreement with the 
     Attorney General or the Secretary to provide information 
     collected under paragraph (1) if--
       ``(A) the requirements of subparagraphs (A) and (B) of 
     paragraph (3) are met; and
       ``(B) such agreement includes appropriate provisions to 
     protect the confidentiality of information provided by the 
     Commissioner under such agreement.''.
       (e) Pilot Program.--
       (1) Establishment.--The Secretary shall establish a pilot 
     program utilizing smart card technology to evaluate--
       (A) the applicability of smart card technology to the 
     Medicare program under title XVIII of the Social Security Act 
     (42 U.S.C. 1395 et seq.), including the applicability of such 
     technology to Medicare beneficiaries or Medicare providers; 
     and
       (B) whether such cards would be effective in preventing 
     fraud under the Medicare program.
       (2) Implementation.--
       (A) Initial implementation.--The Secretary shall implement 
     the pilot program under this subsection not later than 1 year 
     after the date of enactment of this Act.
       (B) Scope and duration.--The Secretary shall conduct the 
     pilot program--
       (i) in not less than 2 States; and
       (ii) for a period of not less than 180 days or more than 2 
     years.
       (3) Report.--Not later than 12 months after the completion 
     of the pilot program under this subsection, the Secretary 
     shall submit to the appropriate committees of Congress and 
     make available to the public a report that includes the 
     following:
       (A) A summary of the pilot program and findings, 
     including--
       (i) the costs or savings to the Medicare program as a 
     result of the implementation of the pilot program;
       (ii) whether the use of smart card technology resulted in 
     improvements in the quality of care provided to Medicare 
     beneficiaries under the pilot program; and
       (iii) whether such technology was useful in preventing or 
     detecting fraud, waste, and abuse in the Medicare program.
       (B) Recommendations regarding whether the use of smart card 
     technology should be expanded under the Medicare program.
       (4) Definitions.--In this subsection:
       (A) Medicare provider.--The term ``Medicare provider'' 
     includes a provider of services (as defined in section 
     1861(u) of the Social Security Act (42 U.S.C. 1395x(u))) and 
     a supplier (as defined in section 1861(d) of such Act (42 
     U.S.C. 1395x(d))).
       (B) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services.
       (C) Smart card.--The term ``smart card'' means 
     identification used by a Medicare beneficiary or a Medicare 
     provider that includes anti-fraud attributes. Such a card--
       (i) may rely on existing commercial data transfer networks 
     or on a network of proprietary card readers or databases; and
       (ii) may include--

       (I) cards using technology adapted from the financial 
     services industry;
       (II) cards containing individual biometric identification, 
     provided that such identification is encrypted and not 
     contained in any central database;
       (III) cards adapting technology and processes utilized in 
     the TRICARE program under chapter 55 of title 10, United 
     States Code, or by the Veterans' Administration; or

       (IV) such other technology as the Secretary determines 
     appropriate.

     SEC. _22. PROHIBITION OF THE DISPLAY, SALE, OR PURCHASE OF 
                   SOCIAL SECURITY NUMBERS.

       (a) Prohibition.--
       (1) In general.--Chapter 47 of title 18, United States 
     Code, is amended by inserting after section 1028A the 
     following:

     ``Sec. 1028B. Prohibition of the display, sale, or purchase 
       of Social Security numbers

       ``(a) Definitions.--In this section:
       ``(1) Display.--The term `display' means to intentionally 
     communicate or otherwise make available (on the Internet or 
     in any other manner) to the general public an individual's 
     Social Security number.
       ``(2) Person.--The term `person' means any individual, 
     partnership, corporation, trust, estate, cooperative, 
     association, or any other entity.
       ``(3) Purchase.--The term `purchase' means providing 
     directly or indirectly, anything of value in exchange for a 
     Social Security number.
       ``(4) Sale.--The term `sale' means obtaining, directly or 
     indirectly, anything of value in exchange for a Social 
     Security number.
       ``(5) State.--The term `State' means any State of the 
     United States, the District of Columbia, Puerto Rico, the 
     Northern Mariana Islands, the United States Virgin Islands, 
     Guam, American Samoa, and any territory or possession of the 
     United States.
       ``(b) Limitation on Display.--No person may display any 
     individual's Social Security number to the general public 
     without the affirmatively expressed consent of the 
     individual.
       ``(c) Limitation on Sale or Purchase.--Except as otherwise 
     provided in this section, no person may sell or purchase any 
     individual's Social Security number without the affirmatively 
     expressed consent of the individual.
       ``(d) Prerequisites for Consent.--In order for consent to 
     exist under subsection (b) or (c), the person displaying or 
     seeking to display, selling or attempting to sell, or 
     purchasing or attempting to purchase, an individual's Social 
     Security number shall--
       ``(1) inform the individual of the general purpose for 
     which the number will be used, the types of persons to whom 
     the number may be available, and the scope of transactions 
     permitted by the consent; and
       ``(2) obtain the affirmatively expressed consent 
     (electronically or in writing) of the individual.
       ``(e) Exceptions.--Nothing in this section shall be 
     construed to prohibit or limit the display, sale, or purchase 
     of a Social Security number--
       ``(1) required, authorized, or excepted under any Federal 
     law;
       ``(2) for a public health purpose, including the protection 
     of the health or safety of an individual in an emergency 
     situation;
       ``(3) for a national security purpose;
       ``(4) for a law enforcement purpose, including the 
     investigation of fraud and the enforcement of a child support 
     obligation;
       ``(5) if the display, sale, or purchase of the number is 
     for a use occurring as a result of an interaction between 
     businesses, governments, or business and government 
     (regardless of which entity initiates the interaction), 
     including, but not limited to--
       ``(A) the prevention of fraud (including fraud in 
     protecting an employee's right to employment benefits);
       ``(B) the facilitation of credit checks or the facilitation 
     of background checks of employees, prospective employees, or 
     volunteers;
       ``(C) the retrieval of other information from other 
     businesses, commercial enterprises, government entities, or 
     private nonprofit organizations; or
       ``(D) when the transmission of the number is incidental to, 
     and in the course of, the sale, lease, franchising, or merger 
     of all, or a portion of, a business;
       ``(6) if the transfer of such a number is part of a data 
     matching program involving a Federal, State, or local agency; 
     or
       ``(7) if such number is required to be submitted as part of 
     the process for applying for any type of Federal, State, or 
     local government benefit or program;

     except that, nothing in this subsection shall be construed as 
     permitting a professional or commercial user to display or 
     sell a Social Security number to the general public.
       ``(f) Limitation.--Nothing in this section shall prohibit 
     or limit the display, sale, or purchase of Social Security 
     numbers as permitted under title V of the Gramm-Leach-Bliley 
     Act, or for the purpose of affiliate sharing as permitted 
     under the Fair Credit Reporting Act, except that no entity 
     regulated under such Acts may make Social Security numbers 
     available to the general public, as may be determined by the 
     appropriate regulators under such Acts. For purposes of this 
     subsection, the general public shall not include affiliates 
     or unaffiliated third-party business entities as may be 
     defined by the appropriate regulators.''.
       (2) Conforming amendment.--The chapter analysis for chapter 
     47 of title 18, United States Code, is amended by inserting 
     after the item relating to section 1028 the following:

``1028B. Prohibition of the display, sale, or purchase of Social 
              Security numbers.''.

       (b) Study; Report.--
       (1) In general.--The Attorney General shall conduct a study 
     and prepare a report on all of the uses of Social Security 
     numbers permitted, required, authorized, or excepted under 
     any Federal law. The report shall include a detailed 
     description of the uses allowed as of the date of enactment 
     of this Act, the impact of such uses on privacy and

[[Page 8358]]

     data security, and shall evaluate whether such uses should be 
     continued or discontinued by appropriate legislative action.
       (2) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Attorney General shall report to 
     Congress findings under this subsection. The report shall 
     include such recommendations for legislation based on 
     criteria the Attorney General determines to be appropriate.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date that is 30 days after the date 
     on which the final regulations promulgated under section 
     1028B of title 18, United States Code, are published in the 
     Federal Register.

     SEC. _23. CRIMINAL PENALTIES FOR THE MISUSE OF A SOCIAL 
                   SECURITY NUMBER.

       (a) Prohibition of Wrongful Use as Personal Identification 
     Number.--No person may obtain any individual's Social 
     Security number for purposes of locating or identifying an 
     individual with the intent to physically injure, harm, or use 
     the identity of the individual for any illegal purpose.
       (b) Criminal Sanctions.--Section 208(a) of the Social 
     Security Act (42 U.S.C. 408(a)) is amended--
       (1) in paragraph (8), by inserting ``or'' after the 
     semicolon; and
       (2) by inserting after paragraph (8) the following:
       ``(9) except as provided in subsections (e) and (f) of 
     section 1028B of title 18, United States Code, knowingly and 
     willfully displays, sells, or purchases (as those terms are 
     defined in section 1028B(a) of title 18, United States Code) 
     any individual's Social Security account number without 
     having met the prerequisites for consent under section 
     1028B(d) of title 18, United States Code; or
       ``(10) obtains any individual's Social Security number for 
     the purpose of locating or identifying the individual with 
     the intent to injure or to harm that individual, or to use 
     the identity of that individual for an illegal purpose;''.

     SEC. _24. CIVIL ACTIONS AND CIVIL PENALTIES.

       (a) Civil Action in State Courts.--
       (1) In general.--Any individual aggrieved by an act of any 
     person in violation of this Act or any amendments made by 
     this Act may, if otherwise permitted by the laws or rules of 
     the court of a State, bring in an appropriate court of that 
     State--
       (A) an action to enjoin such violation;
       (B) an action to recover for actual monetary loss from such 
     a violation, or to receive up to $500 in damages for each 
     such violation, whichever is greater; or
       (C) both such actions.

     It shall be an affirmative defense in any action brought 
     under this paragraph that the defendant has established and 
     implemented, with due care, reasonable practices and 
     procedures to effectively prevent violations of the 
     regulations prescribed under this Act. If the court finds 
     that the defendant willfully or knowingly violated the 
     regulations prescribed under this subsection, the court may, 
     in its discretion, increase the amount of the award to an 
     amount equal to not more than 3 times the amount available 
     under subparagraph (B).
       (2) Statute of limitations.--An action may be commenced 
     under this subsection not later than the earlier of--
       (A) 5 years after the date on which the alleged violation 
     occurred; or
       (B) 3 years after the date on which the alleged violation 
     was or should have been reasonably discovered by the 
     aggrieved individual.
       (3) Nonexclusive remedy.--The remedy provided under this 
     subsection shall be in addition to any other remedies 
     available to the individual.
       (b) Civil Penalties.--
       (1) In general.--Any person who the Attorney General 
     determines has violated any section of this Act or of any 
     amendments made by this Act shall be subject, in addition to 
     any other penalties that may be prescribed by law--
       (A) to a civil penalty of not more than $5,000 for each 
     such violation; and
       (B) to a civil penalty of not more than $50,000, if the 
     violations have occurred with such frequency as to constitute 
     a general business practice.
       (2) Determination of violations.--Any willful violation 
     committed contemporaneously with respect to the Social 
     Security numbers of 2 or more individuals by means of mail, 
     telecommunication, or otherwise, shall be treated as a 
     separate violation with respect to each such individual.
       (3) Enforcement procedures.--The provisions of section 
     1128A of the Social Security Act (42 U.S.C. 1320a-7a), other 
     than subsections (a), (b), (f), (h), (i), (j), (m), and (n) 
     and the first sentence of subsection (c) of such section, and 
     the provisions of subsections (d) and (e) of section 205 of 
     such Act (42 U.S.C. 405) shall apply to a civil penalty 
     action under this subsection in the same manner as such 
     provisions apply to a penalty or proceeding under section 
     1128A(a) of such Act (42 U.S.C. 1320a-7a(a)), except that, 
     for purposes of this paragraph, any reference in section 
     1128A of such Act (42 U.S.C. 1320a-7a) to the Secretary shall 
     be deemed to be a reference to the Attorney General.

 Subtitle D--Strengthening Laws and Improving Enforcement Against Tax-
                         related Identity Theft

     SEC. _31. CRIMINAL PENALTY FOR USING A FALSE IDENTITY IN 
                   CONNECTION WITH TAX FRAUD.

       (a) In General.--Section 7206 is amended--
       (1) by striking ``Any person'' and inserting the following:
       ``(a) In General.--Any person'', and
       (2) by adding at the end the following new subsection:
       ``(b) Use of False Identity.--Any person who willfully 
     misappropriates another person's taxpayer identity (as 
     defined in section 6103(b)(6)) for the purpose of making any 
     list, return, account, statement, or other document submitted 
     to the Secretary under the provisions of this title shall be 
     guilty of a felony and, upon conviction thereof, shall be 
     fined not more than $250,000 ($500,000 in the case of a 
     corporation) or imprisoned not more than 5 years, or both, 
     together with the costs of prosecution.''.
       (b) Aggravated Identity Theft.--Section 1028A(c) of title 
     18, United States Code, is amended by striking ``or'' at the 
     end of paragraph (10), by striking the period at the end of 
     paragraph (11) and inserting ``; or'', and by adding at the 
     end the following new paragraph:
       ``(12) section 7206(b) of the Internal Revenue Code of 1986 
     (relating to use of false identity in connection with tax 
     fraud).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to offenses committed after the date of the 
     enactment of this Act.

     SEC. _32. INCREASED PENALTY FOR IMPROPER DISCLOSURE OR USE OF 
                   INFORMATION BY PREPARERS OF RETURNS.

       (a) In General.--Section 6713(a) is amended--
       (1) by striking ``$250'' and inserting ``$1,000'', and
       (2) by striking ``$10,000'' and inserting ``$50,000''.
       (b) Criminal Penalty.--Section 7216(a) is amended by 
     striking ``$1,000'' and inserting ``$100,000''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to disclosures or uses after the date of the 
     enactment of this Act.

     SEC. _33. AUTHORITY TO TRANSFER INTERNAL REVENUE SERVICE 
                   APPROPRIATIONS TO USE FOR TAX FRAUD 
                   ENFORCEMENT.

       For any fiscal year, the Commissioner of Internal Revenue 
     may transfer not more than $10,000,000 to the ``Enforcement'' 
     account of the Internal Revenue Service from amounts 
     appropriated to other Internal Revenue Service accounts. Any 
     amounts so transferred shall be used solely for the purposes 
     of preventing and resolving potential cases of tax fraud.

     SEC. _34. LOCAL LAW ENFORCEMENT LIAISON.

       (a) Establishment.--The Commissioner of Internal Revenue 
     shall establish within the Criminal Investigation Division of 
     the Internal Revenue Service the position of Local Law 
     Enforcement Liaison.
       (b) Duties.--The Local Law Enforcement Liaison shall serve 
     as the primary source of contact for State and local law 
     enforcement authorities with respect to tax-related identity 
     theft and other tax fraud matters, having duties that shall 
     include--
       (1) receiving information from State and local law 
     enforcement authorities;
       (2) responding to inquiries from State and local law 
     enforcement authorities;
       (3) administering authorized information-sharing 
     initiatives with State or local law enforcement authorities 
     and reviewing the performance of such initiatives;
       (4) ensuring any information provided through authorized 
     information-sharing initiatives with State or local law 
     enforcement authorities is used only for the prosecution of 
     identity theft-related crimes and not re-disclosed to third 
     parties; and
       (5) any other duties as delegated by the Commissioner of 
     Internal Revenue.

     SEC. _35. EXTEND INTERNAL REVENUE SERVICE AUTHORITY TO 
                   REQUIRE TRUNCATED SOCIAL SECURITY NUMBERS ON 
                   FORM W-2.

       (a) In General.--Paragraph (2) of section 6051(a) is 
     amended by striking ``his social security number'' and 
     inserting ``an identifying number for the employee''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. _36. CLARIFICATION WITH RESPECT TO REGULATION OF FEDERAL 
                   TAX RETURN PREPARERS.

       (a) In General.--Subparagraph (D) of section 330(a)(2) of 
     title 31, United States Code, is amended by inserting ``and 
     in preparing and filing their tax returns'' before the 
     period.
       (b) Effective Date.--
       (1) In general.--The amendment made by this section applies 
     to regulations promulgated before, on, or after the date of 
     the enactment of this Act.
       (2) Effect on existing proceedings.--Nothing in this 
     section shall be construed to create a negative inference 
     with respect to the application of section 330 of title 31, 
     United States Code, or the authority of the Secretary of the 
     Treasury under such section, with respect to regulations 
     promulgated before the date of the enactment of this Act.

[[Page 8359]]



     SEC. _37. AUTHENTICATION OF USERS OF ELECTRONIC SERVICES 
                   ACCOUNTS.

       (a) In General.--The Commissioner of Internal Revenue shall 
     establish a program to verify the identity of any individual 
     opening an e-Services account with the Internal Revenue 
     Service before such individual is able to use the e-Services 
     tools.
       (b) Report.--The Commissioner of Internal Revenue shall 
     report to the Committee on Finance of the Senate and the 
     Committee on Ways and Means of the House of Representatives, 
     not later than 1 year after the date of the enactment of this 
     Act, on any further legislative recommendations to prevent 
     fraud relating to the Internal Revenue Service e-Services 
     tools, including an authorized e-file provider program.

  Subtitle E--Accelerating Transition to a Real-time Tax System That 
                  Protects Taxpayers and Reduces Fraud

     SEC. _41. IMPROVEMENT IN ACCESS TO INFORMATION IN THE 
                   NATIONAL DIRECTORY OF NEW HIRES FOR TAX 
                   ADMINISTRATION PURPOSES.

       (a) In General.--Paragraph (3) of section 453(i) of the 
     Social Security Act (42 U.S.C. 653(i)) is amended to read as 
     follows:
       ``(3) Administration of federal tax laws.--The Secretary of 
     the Treasury shall have access to the information in the 
     National Directory of New Hires for purposes of administering 
     the Internal Revenue Code of 1986.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. _42. PLAN OF ACTION FOR TRANSITIONING TO A REAL-TIME TAX 
                   SYSTEM.

       Not later than 270 days after the date of enactment of this 
     Act, the Secretary of the Treasury, or the Secretary's 
     delegate, shall submit to Congress a report analyzing and 
     outlining options and potential timelines for moving toward a 
     tax system that reduces burdens on taxpayers and decreases 
     tax fraud through real-time information matching.
                                 ______
                                 
  SA 3138. Ms. CANTWELL (for herself and Mr. Pryor) submitted an 
amendment intended to be proposed to amendment SA 3060 proposed by Mr. 
Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                       TITLE __--OTHER PROVISIONS

     SEC. ___. DEDUCTIBILITY OF CERTAIN 2014 DISASTER LOSSES.

       (a) In General.--Section 165(h), as amended by this Act, is 
     amended by inserting after paragraph (2) the following:
       ``(3) Special rule for losses in federally declared 
     disasters.--
       ``(A) In general.--If an individual has a net disaster loss 
     for any taxable year, the amount determined under paragraph 
     (2)(A)(ii) shall be the sum of--
       ``(i) such net disaster loss, and
       ``(ii) so much of the excess referred to in the matter 
     preceding clause (i) of paragraph (2)(A) (reduced by the 
     amount in clause (i) of this subparagraph) as exceeds 10 
     percent of the adjusted gross income of the individual.
       ``(B) Net disaster loss.--For purposes of subparagraph (A), 
     the term `net disaster loss' means the excess of--
       ``(i) the personal casualty losses--

       ``(I) attributable to a federally declared disaster 
     occurring during calendar year 2014, and
       ``(II) occurring in a disaster area, over

       ``(ii) personal casualty gains.
       ``(C) Federally declared disaster and area.--For purposes 
     of this paragraph, the terms `federally declared disaster' 
     and `disaster area' have the meanings given to such terms by 
     subsection (i)(5).''.
       (b) Deduction Allowed in Computing Adjusted Gross Income.--
     Subparagraph (A) of section 165(h)(5) is amended to read as 
     follows:
       ``(A) Certain personal casualty losses allowable in 
     computing adjusted gross income.--
       ``(i) Losses not in excess of personal casualty gains.--In 
     any case to which paragraph (2)(A) applies, the deduction for 
     personal casualty losses for any taxable year shall be 
     treated as a deduction allowable in computing adjusted gross 
     income to the extent such losses do not exceed the personal 
     casualty gains for the taxable year.
       ``(ii) Net disaster losses.--In any case to which paragraph 
     (3) applies, the portion of the deduction for personal 
     casualty losses for any taxable year which is properly 
     allocable to the net disaster loss for the taxable year shall 
     be treated as a deduction allowable in computing adjusted 
     gross income.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to federally declared disasters occurring after 
     December 31, 2013, and to losses attributable to such 
     disasters.
                                 ______
                                 
  SA 3139. Mr. SANDERS submitted an amendment intended to be proposed 
to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to 
amend the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       Beginning on page 42, strike line 3 and all that follows 
     through page 43, line 12.
                                 ______
                                 
  SA 3140. Ms. CANTWELL (for herself, Mr. Bennet, Ms. Stabenow, Mr. 
Cardin, Mr. Menendez, Mr. Brown, Mr. Nelson, and Mr. Carper) submitted 
an amendment intended to be proposed to amendment SA 3060 proposed by 
Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 
1986 to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       On page 52, between lines 19 and 20, insert the following:
       (c) Extension for Solar Energy Facilities.--Section 
     45(d)(4)(A) is amended by inserting ``or the construction of 
     which begins after December 31, 2013, and before January 1, 
     2016,'' after ``2006,''.
                                 ______
                                 
  SA 3141. Mr. LEAHY submitted an amendment intended to be proposed to 
amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend 
the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the end, add the following:

                       TITLE _--OTHER PROVISIONS

     SEC. _01. CREDIT FOR INSTALLATION OF SPRINKLERS AND ELEVATORS 
                   IN HISTORIC BUILDINGS.

       (a) In General.--Subpart C of part IV of subchapter A of 
     chapter 1 is amended by inserting after section 36B the 
     following new section:

     ``SEC. 36C. HISTORIC BUILDING EXPENSES.

       ``(a) In General.--There shall be allowed a credit against 
     the tax imposed by this subtitle for the taxable year an 
     amount equal to 50 percent of the qualified historic building 
     expenses paid or incurred by the taxpayer during such taxable 
     year.
       ``(b) Limitation.--The credit allowed under subsection (a) 
     with respect to any taxpayer for any taxable year shall not 
     exceed $50,000.
       ``(c) Qualified Historic Building Expenses.--For purposes 
     of this section--
       ``(1) In general.--The term `qualified historic building 
     expenses' means amounts paid or incurred to install in a 
     certified historic structure an elevator system or a 
     sprinkler system that meets the requirements found in the 
     most recent edition of NFPA 13: Standard for the Installation 
     of Sprinkler Systems.
       ``(2) National historic landmarks.--In the case of a 
     certified historic structure that is designated as a National 
     Historic Landmark in accordance with section 101(a) of the 
     National Historic Preservation Act (16 U.S.C. 470a(a)) and 
     that is open to the public, the term `qualified historic 
     building expenses' shall not include an expense described in 
     paragraph (1), unless the installation of property described 
     in such paragraph meets the requirements for a certified 
     rehabilitation under section 47(c)(2)(C).
       ``(3) Certified historic structure.--The term `certified 
     historic structure' has the meaning given such term in 
     section 47(c)(3), except that such term shall not include any 
     structure which is a single-family residence.''.
       (b) Conforming Amendments.--
       (1) Section 1324 of title 31, United States Code, is 
     amended by inserting ``, 36C'' after ``, 36B''.
       (2) The table of sections for subpart C of part IV of 
     subchapter A of chapter 1 is amended by inserting after the 
     item relating to section 36B the following new item:

``Sec. 36C. Historic building expenses.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred in taxable years 
     beginning after the date of the enactment of this Act.
                                 ______
                                 
  SA 3142. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being

[[Page 8360]]

taken into account for purposes of the employer mandate under the 
Patient Protection and Affordable Care Act; which was ordered to lie on 
the table; as follows:

       Strike section 115.
                                 ______
                                 
  SA 3143. Mr. MORAN (for himself, Ms. Heitkamp, Mr. Thune, Mr. 
Heinrich, Mr. Begich, Mr. Inhofe, Mr. Bennet, Ms. Stabenow, Mr. Enzi, 
Mr. Hoeven, Mr. Udall of New Mexico, Mr. Johnson of South Dakota, Mr. 
Udall of Colorado, Mrs. Murray, Mr. Crapo, Mr. Tester, Mr. Walsh, and 
Ms. Murkowski) submitted an amendment intended to be proposed by him to 
the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow 
employers to exempt employees with health coverage under TRICARE or the 
Veterans Administration from being taken into account for purposes of 
the employer mandate under the Patient Protection and Affordable Care 
Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

               TITLE __--TRIBAL GENERAL WELFARE EXCLUSION

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``Tribal General Welfare 
     Exclusion Act of 2013''.

     SEC. _02. INDIAN GENERAL WELFARE BENEFITS.

       (a) In General.--Part III of subchapter B of chapter 1 is 
     amended by inserting before section 140 the following new 
     section:

     ``SEC. 139E. INDIAN GENERAL WELFARE BENEFITS.

       ``(a) In General.--Gross income does not include the value 
     of any Indian general welfare benefit.
       ``(b) Indian General Welfare Benefit.--For purposes of this 
     section, the term `Indian general welfare benefit' includes 
     any payment made or services provided to or on behalf of a 
     member of an Indian tribe (or any spouse or dependent of such 
     a member) pursuant to an Indian tribal government program, 
     but only if--
       ``(1) the program is administered under specified 
     guidelines and does not discriminate in favor of members of 
     the governing body of the tribe, and
       ``(2) the benefits provided under such program--
       ``(A) are available to any tribal member who meets such 
     guidelines,
       ``(B) are for the promotion of general welfare,
       ``(C) are not lavish or extravagant, and
       ``(D) are not compensation for services.
       ``(c) Definitions and Special Rules.--For purposes of this 
     section--
       ``(1) Indian tribal government.--For purposes of this 
     section, the term `Indian tribal government' includes any 
     agencies or instrumentalities of an Indian tribal government 
     and any Alaska Native regional or village corporation, as 
     defined in, or established pursuant to, the Alaska Native 
     Claims Settlement Act (43 U.S.C. 1601 et seq.).
       ``(2) Dependent.--The term `dependent' has the meaning 
     given such term by section 152, determined without regard to 
     subsections (b)(1), (b)(2), and (d)(1)(B).
       ``(3) Lavish or extravagant.--The Secretary shall, in 
     consultation with the Tribal Advisory Committee (as 
     established under section 3(a) of the Tribal General Welfare 
     Exclusion Act of 2013), establish guidelines for what 
     constitutes lavish or extravagant benefits with respect to 
     Indian tribal government programs.
       ``(4) Establishment of tribal government program.--A 
     program shall not fail to be treated as an Indian tribal 
     government program solely by reason of the program being 
     established by tribal custom or government practice.
       ``(5) Ceremonial activities.--Any items of cultural 
     significance, reimbursement of costs, or cash honorarium for 
     participation in cultural or ceremonial activities for the 
     transmission of tribal culture shall not be treated as 
     compensation for services.''.
       (b) Conforming Amendment.--The table of sections for part 
     III of subchapter B of chapter 1 is amended by inserting 
     before the item relating to section 140 the following new 
     item:

``Sec. 139E. Indian general welfare benefits.''.

       (c) Statutory Construction.--Ambiguities in section 139E of 
     the Internal Revenue Code of 1986, as added by this section, 
     shall be resolved in favor of Indian tribal governments and 
     deference shall be given to Indian tribal governments for the 
     programs administered and authorized by the tribe to benefit 
     the general welfare of the tribal community.
       (d) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to taxable years for which the period of limitation on 
     refund or credit under section 6511 of the Internal Revenue 
     Code of 1986 has not expired.
       (2) One-year waiver of statute of limitations.--If the 
     period of limitation on a credit or refund resulting from the 
     amendments made by subsection (a) expires before the end of 
     the 1-year period beginning on the date of the enactment of 
     this Act, refund or credit of such overpayment (to the extent 
     attributable to such amendments) may, nevertheless, be made 
     or allowed if claim therefor is filed before the close of 
     such 1-year period.

     SEC. _03. TRIBAL ADVISORY COMMITTEE.

       (a) Establishment.--The Secretary of the Treasury shall 
     establish a Tribal Advisory Committee (hereinafter in this 
     subsection referred to as the ``Committee'').
       (b) Duties.--
       (1) Implementation.--The Committee shall advise the 
     Secretary on matters relating to the taxation of Indians.
       (2) Education and training.--The Secretary shall, in 
     consultation with the Committee, establish and require--
       (A) training and education for internal revenue field 
     agents who administer and enforce internal revenue laws with 
     respect to Indian tribes on Federal Indian law and the 
     Federal Government's unique legal treaty and trust 
     relationship with Indian tribal governments, and
       (B) training of such internal revenue field agents, and 
     provision of training and technical assistance to tribal 
     financial officers, about implementation of this Act and the 
     amendments made thereby.
       (c) Membership.--
       (1) In general.--The Committee shall be composed of 7 
     members appointed as follows:
       (A) Three members appointed by the Secretary of the 
     Treasury.
       (B) One member appointed by the Chairman, and one member 
     appointed by the Ranking Member, of the Committee on Ways and 
     Means of the House of Representatives.
       (C) One member appointed by the Chairman, and one member 
     appointed by the Ranking Member, of the Committee on Finance 
     of the Senate.
       (2) Term.--
       (A) In general.--Except as provided in subparagraph (B), 
     each member's term shall be 4 years.
       (B) Initial staggering.--The first appointments made by the 
     Secretary under paragraph (1)(A) shall be for a term of 2 
     years.

     SEC. 4. OTHER RELIEF FOR INDIAN TRIBES.

       (a) Temporary Suspension of Examinations.--The Secretary of 
     the Treasury shall suspend all audits and examinations of 
     Indian tribal governments and members of Indian tribes (or 
     any spouse or dependent of such a member), to the extent such 
     an audit or examination relates to the exclusion of a payment 
     or benefit from an Indian tribal government under the general 
     welfare exclusion, until the education and training 
     prescribed by this Act is completed. The running of any 
     period of limitations under section 6501 of the Internal 
     Revenue Code of 1986 with respect to Indian tribal 
     governments and members of Indian tribes shall be suspended 
     during the period during which audits and examinations are 
     suspended under the preceding sentence.
       (b) Waiver of Penalties and Interest.--The Secretary of the 
     Treasury may waive any interest and penalties imposed under 
     such Code on any Indian tribal government or member of an 
     Indian tribe (or any spouse or dependent of such a member) to 
     the extent such interest and penalties relate to excluding a 
     payment or benefit from gross income under the general 
     welfare exclusion.
       (c) Definitions.--For purposes of this subsection--
       (1) Indian tribal government.--The term ``Indian tribal 
     government'' shall have the meaning given such term by 
     section 139E of the Internal Revenue Code of 1986, as added 
     by this Act.
       (2) Indian tribe.--The term ``Indian tribe'' shall have the 
     meaning given such term by section 45A(c)(6) of such Code.
                                 ______
                                 
  SA 3144. Mr. BARRASSO (for himself, Mr. Hatch, Mr. Roberts, Mr. Enzi, 
Mr. Isakson, Mr. McConnell, Ms. Ayotte, Ms. Collins, Mr. Alexander, and 
Mr. Crapo) submitted an amendment intended to be proposed by him to the 
bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow 
employers to exempt employees with health coverage under TRICARE or the 
Veterans Administration from being taken into account for purposes of 
the employer mandate under the Patient Protection and Affordable Care 
Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                       TITLE __--OTHER PROVISIONS

     SEC. ____. PROTECTING PATIENTS FROM HIGHER PREMIUMS.

       (a) In General.--Subsection (a)(1) of section 9010 of the 
     Patient Protection and Affordable Care Act (Public Law 111-
     148), as amended by section 10905 of such Act and by section 
     1406 of the Health Care and Education Reconciliation Act of 
     2010 (Public Law 111-152), is amended by striking ``2013'' 
     and inserting ``2015''.
       (b) Conforming Amendments.--
       (1) Subsection (j) of section 9010 of the Patient 
     Protection and Affordable Care Act (Public Law 111-148), as 
     amended by section 10905 of such Act and by section 1406 of 
     the Health Care and Education Reconciliation Act of 2010 
     (Public Law 111-152), is amended by striking ``2013'' and 
     inserting ``2015''.

[[Page 8361]]

       (2) Subsection (e) of section 9010 of the Patient 
     Protection and Affordable Care Act (Public Law 111-148), as 
     amended by section 10905 of such Act and by section 1406 of 
     the Health Care and Education Reconciliation Act of 2010 
     (Public Law 111-152), is amended--
       (A) in paragraph (1)--
       (i) by striking ``2019'' in the heading and inserting 
     ``2021'',
       (ii) by striking ``2019'' and inserting ``2021'',
       (iii) by striking ``2018'' in the last line of the table 
     and inserting ``2020'',
       (iv) by striking ``2017'' in the 4th line of the table and 
     inserting ``2019'',
       (v) by striking ``2016'' in the 3rd line of the table and 
     inserting ``2018'',
       (vi) by striking ``2015'' in the 2nd line of the table and 
     inserting ``2017'', and
       (vii) by striking ``2014'' in the 1st line of the table and 
     inserting ``2016'', and
       (B) in paragraph (2)--
       (i) by striking ``2018'' in the heading and inserting 
     ``2020'', and
       (ii) by striking ``2018'' and inserting ``2020''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as if included in section 9010 of the 
     Patient Protection and Affordable Care Act.
                                 ______
                                 
  SA 3145. Mr. FLAKE (for himself, Mr. Alexander, Mr. McCain, Mr. Lee, 
Mr. McConnell, and Mr. Coburn) submitted an amendment intended to be 
proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 
3474, to amend the Internal Revenue Code of 1986 to allow employers to 
exempt employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       On page 52, between lines 19 and 20, insert the following:
       (c) Modification of Definition of Qualified Facilities.--
       (1) In general.--The following provisions of section 45(d), 
     as amended by subsection (a), are each amended by striking 
     ``and the construction of which begins before'' each place it 
     appears and inserting ``and before'':
       (A) Paragraph (1).
       (B) Paragraph (2)(A)(i).
       (C) Paragraph (3)(A)(i)(I).
       (D) Paragraph (6).
       (E) Paragraph (7).
       (F) Paragraph (9)(A)(ii).
       (G) Paragraph (11)(B).
       (2) Open-loop biomass facilities.--Clause (ii) of section 
     45(d)(3)(A) is amended by striking ``the construction of 
     which begins before'' and inserting ``is originally placed in 
     service before''.
       (3) Geothermal facilities.--Paragraph (4) of section 45(d), 
     as amended by subsection (a), is amended by striking ``and 
     which--'' and all that follows and inserting ``and before--
       ``(A) January 1, 2006, in the case of a facility using 
     solar energy, and
       ``(B) January 1, 2016, in the case of a facility using 
     geothermal energy.''.
                                 ______
                                 
  SA 3146. Mr. FLAKE (for himself, Mr. Alexander, Mr. Toomey, Mr. 
McCain, Mr. Lee, Mr. McConnell, and Mr. Coburn) submitted an amendment 
intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to 
the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow 
employers to exempt employees with health coverage under TRICARE or the 
Veterans Administration from being taken into account for purposes of 
the employer mandate under the Patient Protection and Affordable Care 
Act; which was ordered to lie on the table; as follows:

       On page 52, strike line 1 and all that follows through line 
     21.

                                 ______
                                 
  SA 3147. Mr. CORNYN (for himself, Mr. Coats, Mr. Isakson, and Mr. 
Burr) submitted an amendment intended to be proposed to amendment SA 
3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal 
Revenue Code of 1986 to allow employers to exempt employees with health 
coverage under TRICARE or the Veterans Administration from being taken 
into account for purposes of the employer mandate under the Patient 
Protection and Affordable Care Act; which was ordered to lie on the 
table; as follows:

       At the end, add the following:

              TITLE _--ECONOMIC GROWTH AND JOBS PROTECTION

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``Economic Growth and Jobs 
     Protection Act of 2010''.

     SEC. _02. REPEAL OF UNEARNED INCOME MEDICARE CONTRIBUTION.

       (a) In General.--Chapter 2A is repealed.
       (b) Conforming Amendment.--The table of chapters for 
     subtitle A of chapter 1 is amended by striking the item 
     relating to chapter 2A.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.
                                 ______
                                 
  SA 3148. Mr. CORNYN submitted an amendment intended to be proposed to 
amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend 
the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the end, add the following:

                       TITLE _--TAX TRANSPARENCY

     SEC. _01. TAX EFFECT TRANSPARENCY.

       (a) In General.--Chapter 2 of title 1, United States Code, 
     is amended by inserting after section 102 the following:

     ``Sec. 102a. Tax effect transparency

       ``(a) In General.--Each Act of Congress, bill, resolution, 
     conference report thereon, or amendment there to, that 
     modifies Federal tax law shall contain a statement describing 
     the general effect of the modification on Federal tax law.
       ``(b) Failure To Comply.--
       ``(1) In general.--A failure to comply with subsection (a) 
     shall give rise to a point of order in either House of 
     Congress, which may be raised by any Senator during 
     consideration in the Senate or any Member of the House of 
     Representatives during consideration in the House of 
     Representatives.
       ``(2) Nonexclusivity.--The availability of a point of order 
     under this section shall not affect the availability of any 
     other point of order.
       ``(c) Disposition of Point of Order in the Senate.--
       ``(1) In general.--Any Senator may raise a point of order 
     that any matter is not in order under subsection (a).
       ``(2) Waiver.--
       ``(A) In general.--Any Senator may move to waive a point of 
     order raised under paragraph (1) by an affirmative vote of 
     three-fifths of the Senators duly chosen and sworn.
       ``(B) Procedures.--For a motion to waive a point of order 
     under subparagraph (A) as to a matter--
       ``(i) a motion to table the point of order shall not be in 
     order;
       ``(ii) all motions to waive one or more points of order 
     under this section as to the matter shall be debatable for a 
     total of not more than 1 hour, equally divided between the 
     Senator raising the point of order and the Senator moving to 
     waive the point of order or their designees; and
       ``(iii) a motion to waive the point of order shall not be 
     amendable.
       ``(d) Disposition of Point of Order in the House of 
     Representatives.--
       ``(1) In general.--If a Member of the House of 
     Representatives makes a point of order under this section, 
     the Chair shall put the question of consideration with 
     respect to the proposition of whether any statement made 
     under subsection (a) was adequate or, in the absence of such 
     a statement, whether a statement is required under subsection 
     (a).
       ``(2) Consideration.--For a point of order under this 
     section made in the House of Representatives--
       ``(A) the question of consideration shall be debatable for 
     10 minutes, equally divided and controlled by the Member 
     making the point of order and by an opponent, but shall 
     otherwise be decided without intervening motion except one 
     that the House of Representatives adjourn or that the 
     Committee of the Whole rise, as the case may be;
       ``(B) in selecting the opponent, the Speaker of the House 
     of Representatives should first recognize an opponent from 
     the opposing party; and
       ``(C) the disposition of the question of consideration with 
     respect to a measure shall be considered also to determine 
     the question of consideration under this section with respect 
     to an amendment made in order as original text.
       ``(e) Rulemaking Authority.--The provisions of this section 
     are enacted by the Congress--
       ``(1) as an exercise of the rulemaking power of the House 
     of Representatives and the Senate, respectively, and as such 
     they shall be considered as part of the rules of each House, 
     respectively, or of that House to which they specifically 
     apply, and such rules shall supersede other rules only to the 
     extent that they are inconsistent therewith; and
       ``(2) with full recognition of the constitutional right of 
     either House to change such rules (so far as relating to such 
     House) at any time, in the same manner, and to the same 
     extent as in the case of any other rule of such House.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 2 of title 1, United States Code, is 
     amended by inserting after the item relating to section 102 
     the following new item:

``102a. Tax effect transparency.''.

                                 ______
                                 
  SA 3149. Mr. CORNYN submitted an amendment intended to be proposed to

[[Page 8362]]

amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend 
the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the end, add the following:

            TITLE _--ELIMINATING IMPROPER AND ABUSIVE AUDITS

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``Eliminating Improper and 
     Abusive IRS Audits Act of 2014''.

     SEC. _02. CIVIL DAMAGES ALLOWED FOR RECKLESS OR INTENTIONAL 
                   DISREGARD OF INTERNAL REVENUE LAWS.

       (a) Increase in Amount of Damages.--Section 7433(b) is 
     amended by striking ``$1,000,000 ($100,000, in the case of 
     negligence)'' and inserting ``$3,000,000 ($300,000, in the 
     case of negligence)''.
       (b) Extension of Time To Bring Action.--Section 7433(d)(3) 
     is amended by striking ``2 years'' and inserting ``5 years''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to actions of employees of the Internal Revenue 
     Service after the date of the enactment of this Act.

     SEC. _03. MODIFICATIONS RELATING TO CERTAIN OFFENSES BY 
                   OFFICERS AND EMPLOYEES IN CONNECTION WITH 
                   REVENUE LAWS.

       (a) Increase in Penalty.--Section 7214 is amended--
       (1) by striking ``$10,000'' in subsection (a) and inserting 
     ``$25,000'', and
       (2) by striking ``$5,000'' in subsection (b) and inserting 
     ``$10,000''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. _04. MODIFICATIONS RELATING TO CIVIL DAMAGES FOR 
                   UNAUTHORIZED INSPECTION OR DISCLOSURE OF 
                   RETURNS AND RETURN INFORMATION.

       (a) Increase in Amount of Damages.--Subparagraph (A) of 
     section 7431(c)(1) is amended by striking ``$1,000'' and 
     inserting ``$10,000''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to inspections and disclosure occurring on and 
     after the date of the enactment of this Act.

     SEC. _05. EXTENSION OF TIME FOR CONTESTING IRS LEVY.

       (a) Extension of Time for Return of Property Subject to 
     Levy.--Subsection (b) of section 6343 is amended by striking 
     ``9 months'' and inserting ``3 years''.
       (b) Period of Limitation on Suits.--Subsection (c) of 
     section 6532 is amended--
       (1) in paragraph (1) by striking ``9 months'' and inserting 
     ``3 years'', and
       (2) in paragraph (2) by striking ``9-month'' and inserting 
     ``3-year''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to--
       (1) levies made after the date of the enactment of this 
     Act, and
       (2) levies made on or before such date if the 9-month 
     period has not expired under section 6343(b) of the Internal 
     Revenue Code of 1986 (without regard to this section) as of 
     such date.

     SEC. _06. INCREASE IN MONETARY PENALTIES FOR CERTAIN 
                   UNAUTHORIZED DISCLOSURES OF INFORMATION.

       (a) In General.--Paragraphs (1), (2), (3), and (4) of 
     section 7213(a) are each amended by striking ``$5,000'' and 
     inserting ``$10,000''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to disclosures made after the date of the 
     enactment of this Act.

     SEC. _07. BAN ON RAISING NEW ISSUES ON APPEAL.

       (a) In General.--Chapter 77 is amended by adding at the end 
     the following new section:

     ``SEC. 7529. PROHIBITION ON INTERNAL REVENUE SERVICE RAISING 
                   NEW ISSUES IN AN INTERNAL APPEAL.

       ``(a) In General.--In reviewing an appeal of any 
     determination initially made by the Internal Revenue Service, 
     the Internal Revenue Service Office of Appeals may not 
     consider or decide any issue that is not within the scope of 
     the initial determination.
       ``(b) Certain Issues Deemed Outside of Scope of 
     Determination.--For purposes of subsection (a), the following 
     matters shall be considered to be not within the scope of a 
     determination:
       ``(1) Any issue that was not raised in a notice of 
     deficiency or an examiner's report which is the subject of 
     the appeal.
       ``(2) Any deficiency in tax which was not included in the 
     initial determination.
       ``(3) Any theory or justification for a tax deficiency 
     which was not considered in the initial determination.
       ``(c) No Inference With Respect to Issues Raised by 
     Taxpayers.--Nothing in this section shall be construed to 
     provide any limitation in addition to any limitations in 
     effect on the date of the enactment of this section on the 
     right of a taxpayer to raise an issue, theory, or 
     justification on an appeal from a determination initially 
     made by the Internal Revenue Service that was not within the 
     scope of the initial determination.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     77 is amended by adding at the end the following new item:

``Sec. 7529. Prohibition on Internal Revenue Service raising new issues 
              in an internal appeal.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to matters filed or pending with the Internal 
     Revenue Service Office of Appeals on or after the date of the 
     enactment of this Act.

     SEC. _08. LIMITATION ON ENFORCEMENT OF LIENS AGAINST 
                   PRINCIPAL RESIDENCES.

       (a) In General.--Section 7403(a) is amended--
       (1) by striking ``In any case'' and inserting the 
     following:
       ``(1) In general.--In any case'', and
       (2) by adding at the end the following new paragraph:
       ``(2) Limitation with respect to principal residence.--
       ``(A) In general.--Paragraph (1) shall not apply to any 
     property used as the principal residence of the taxpayer 
     (within the meaning of section 121) unless the Secretary of 
     the Treasury makes a written determination that--
       ``(i) all other property of the taxpayer, if sold, is 
     insufficient to pay the tax or discharge the liability, and
       ``(ii) such action will not create an economic hardship for 
     the taxpayer.
       ``(B) Delegation.--For purposes of this paragraph, the 
     Secretary of the Treasury may not delegate any 
     responsibilities under subparagraph (A) to any person other 
     than--
       ``(i) the Commissioner of Internal Revenue, or
       ``(ii) a district director or assistant district director 
     of the Internal Revenue Service.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to actions filed after the date of the enactment 
     of this Act.

     SEC. _09. ADDITIONAL PROVISIONS RELATING TO MANDATORY 
                   TERMINATION FOR MISCONDUCT.

       (a) Termination of Unemployment for Inappropriate Review of 
     Tax-Exempt Status.--Section 1203(b) of the Internal Revenue 
     Service Restructuring and Reform Act of 1998 (26 U.S.C. 7804 
     note) is amended by striking ``and'' at the end of paragraph 
     (9), by striking the period at the end of paragraph (10) and 
     inserting ``; and'', and by adding at the end the following 
     new paragraph:
       ``(11) in the case of any review of an application for tax-
     exempt status by an organization described in section 501(c) 
     of the Internal Revenue Code of 1986, developing or using any 
     methodology that applies disproportionate scrutiny to any 
     applicant based on the ideology expressed in the name or 
     purpose of the organization.''.
       (b) Mandatory Unpaid Administrative Leave for Misconduct.--
     Paragraph (1) of Section 1203(c) of the Internal Revenue 
     Service Restructuring and Reform Act of 1998 (26 U.S.C. 7804 
     note) is amended by adding at the end the following new 
     sentence: ``Notwithstanding the preceding sentence, if the 
     Commissioner of Internal Revenue takes a personnel action 
     other than termination for an act or omission described in 
     subsection (b), the Commissioner shall place the employee on 
     unpaid administrative leave for a period of not less than 30 
     days.''.
       (c) Limitation on Alternative Punishment.--Paragraph (1) of 
     section 1203(c) of the Internal Revenue Service Restructuring 
     and Reform Act of 1998 (26 U.S.C. 7804 note) is amended by 
     striking ``The Commissioner'' and inserting ``Except in the 
     case of an act or omission described in subsection (b)(3)(A), 
     the Commissioner''.

     SEC. _10. EXTENSION OF DECLARATORY JUDGMENT PROCEDURES TO 
                   SOCIAL WELFARE ORGANIZATIONS.

       (a) In General.--Section 7428(a)(1) is amended by striking 
     ``or'' at the end of subparagraph (C) and by adding at the 
     end the following new subparagraph:
       ``(E) with respect to the initial classification or 
     continuing classification of an organization described in 
     section 501(c)(4) which is exempt from tax under section 
     501(a), or''.
       (b) Effective Date.--The amendments made by this section 
     shall apply with respect to pleading filed after the date of 
     the enactment of this Act.

     SEC. _11. REVIEW BY THE TREASURY INSPECTOR GENERAL FOR TAX 
                   ADMINISTRATION.

       (a) Review.--Subsection (k)(1) of section 8D of the 
     Inspector General Act of 1978 (5 U.S.C. App.) is amended--
       (1) in subparagraph (C), by striking ``and'' at the end;
       (2) by redesignating subparagraph (D) as subparagraph (E);
       (3) by inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) shall--
       ``(i) review any criteria employed by the Internal Revenue 
     Service to select tax returns (including applications for 
     recognition of tax-exempt status) for examination or audit, 
     assessment or collection of deficiencies, criminal 
     investigation or referral, refunds for amounts paid, or any 
     heightened scrutiny or review in order to determine whether 
     the criteria discriminates against taxpayers on the basis of 
     race, religion, or political ideology; and
       ``(ii) consult with the Internal Revenue Service on 
     recommended amendments to

[[Page 8363]]

     such criteria in order to eliminate any discrimination 
     identified pursuant to the review described in clause (i); 
     and''; and
       (4) in subparagraph (E), as so redesignated, by striking 
     ``and (C)'' and inserting ``(C), and (D)''.
       (b) Semiannual Report.--Subsection (g) of such section is 
     amended by adding at the end the following new paragraph:
       ``(3) Any semiannual report made by the Treasury Inspector 
     General for Tax Administration that is required pursuant to 
     section 5(a) shall include--
       ``(A) a statement affirming that the Treasury Inspector 
     General for Tax Administration has reviewed the criteria 
     described in subsection (k)(1)(D) and consulted with the 
     Internal Revenue Service regarding such criteria; and
       ``(B) a description and explanation of any such criteria 
     that was identified as discriminatory by the Treasury 
     Inspector General for Tax Administration.''.
                                 ______
                                 
  SA 3150. Mr. CORNYN submitted an amendment intended to be proposed to 
amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend 
the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the end, add the following:

            TITLE _--SMALL BUSINESS TAXPAYER BILL OF RIGHTS

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``Small Business Taxpayer 
     Bill of Rights Act of 2014''.

     SEC. _02. MODIFICATION OF STANDARDS FOR AWARDING OF COSTS AND 
                   CERTAIN FEES.

       (a) Small Businesses Eligible Without Regard to Net 
     Worth.--Subparagraph (D) of section 7430(c)(4) is amended by 
     striking ``and'' at the end of clause (i), by striking the 
     period at the end of clause (ii) and inserting ``and'', and 
     by adding at the end the following new clause:
       ``(iii) in the case of an eligible small business, the net 
     worth limitation in clause (ii) of such section shall not 
     apply.''.
       (b) Eligible Small Business.--Paragraph (4) of section 
     7430(c) is amended by adding at the end the following new 
     subparagraph:
       ``(F) Eligible small business.--For purposes of 
     subparagraph (D)(iii), the term `eligible small business' 
     means, with respect to any proceeding commenced in a taxable 
     year--
       ``(i) a corporation the stock of which is not publicly 
     traded,
       ``(ii) a partnership, or
       ``(iii) a sole proprietorship,
     if the average annual gross receipts of such corporation, 
     partnership, or sole proprietorship for the 3-taxable-year 
     period preceding such taxable year does not exceed 
     $50,000,000. For purposes of applying the test under the 
     preceding sentence, rules similar to the rules of paragraphs 
     (2) and (3) of section 448(c) shall apply.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to proceedings commenced after the date of the 
     enactment of this Act.

     SEC. _03. CIVIL DAMAGES ALLOWED FOR RECKLESS OR INTENTIONAL 
                   DISREGARD OF INTERNAL REVENUE LAWS.

       (a) Increase in Amount of Damages.--Section 7433(b) is 
     amended by striking ``$1,000,000 ($100,000, in the case of 
     negligence)'' and inserting ``$3,000,000 ($300,000, in the 
     case of negligence)''.
       (b) Extension of Time To Bring Action.--Section 7433(d)(3) 
     is amended by striking ``2 years'' and inserting ``5 years''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to actions of employees of the Internal Revenue 
     Service after the date of the enactment of this Act.

     SEC. _04. MODIFICATIONS RELATING TO CERTAIN OFFENSES BY 
                   OFFICERS AND EMPLOYEES IN CONNECTION WITH 
                   REVENUE LAWS.

       (a) Increase in Penalty.--Section 7214 is amended--
       (1) by striking ``$10,000'' in subsection (a) and inserting 
     ``$25,000'', and
       (2) by striking ``$5,000'' in subsection (b) and inserting 
     ``$10,000''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. _05. MODIFICATIONS RELATING TO CIVIL DAMAGES FOR 
                   UNAUTHORIZED INSPECTION OR DISCLOSURE OF 
                   RETURNS AND RETURN INFORMATION.

       (a) Increase in Amount of Damages.--Subparagraph (A) of 
     section 7431(c)(1) is amended by striking ``$1,000'' and 
     inserting ``$10,000''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to inspections and disclosure occurring on and 
     after the date of the enactment of this Act.

     SEC. _06. INTEREST ABATEMENT REVIEWS.

       (a) Filing Period for Interest Abatement Cases.--
       (1) In general.--Subsection (h) of section 6404 is 
     amended--
       (A) by striking ``Review of Denial'' in the heading and 
     inserting ``Judicial Review'', and
       (B) by striking ```if such action is brought''' and all 
     that follows in paragraph (1) and inserting ``if such action 
     is brought--
       ``(A) at any time after the earlier of--
       ``(i) the date of the mailing of the Secretary's final 
     determination not to abate such interest, or
       ``(ii) the date which is 180 days after the date of the 
     filing with the Secretary (in such form as the Secretary may 
     prescribe) of a claim for abatement under this section, and
       ``(B) not later than the date which is 180 days after the 
     date described in subparagraph (A)(i).''.
       (2) Effective date.--The amendments made by this subsection 
     shall apply to claims for abatement of interest filed with 
     the Secretary after the date of the enactment of this Act.
       (b) Small Tax Case Election for Interest Abatement Cases.--
       (1) In general.--Subsection (f) of section 7463 is 
     amended--
       (A) by striking ``and'' at the end of paragraph (1),
       (B) by striking the period at the end of paragraph (2) and 
     inserting ``, and'', and
       (C) by adding at the end the following new paragraph:
       ``(3) a petition to the Tax court under section 6404(h) in 
     which the amount of interest abatement sought does not exceed 
     $50,000.''.
       (2) Effective date.--The amendments made by this subsection 
     shall apply to--
       (A) cases pending as of the day after the date of the 
     enactment of this Act, and
       (B) cases commenced after such date of enactment.

     SEC. _07. BAN ON EX PARTE DISCUSSIONS.

       (a) In General.--Notwithstanding section 1001(a)(4) of the 
     Internal Revenue Service Restructuring and Reform Act of 
     1998, the Internal Revenue Service shall prohibit any ex 
     parte communications between officers in the Internal Revenue 
     Service Office of Appeals and other Internal Revenue Service 
     employees with respect to any matter pending before such 
     officers.
       (b) Termination of Employment for Misconduct.--Subject to 
     subsection (c), the Commissioner of Internal Revenue shall 
     terminate the employment of any employee of the Internal 
     Revenue Service if there is a final administrative or 
     judicial determination that such employee committed any act 
     or omission prohibited under subsection (a) in the 
     performance of the employee's official duties. Such 
     termination shall be a removal for cause on charges of 
     misconduct.
       (c) Determination of Commissioner.--
       (1) In general.--The Commissioner of Internal Revenue may 
     take a personnel action other than termination for an act 
     prohibited under subsection (a).
       (2) Discretion.--The exercise of authority under paragraph 
     (1) shall be at the sole discretion of the Commissioner of 
     Internal Revenue and may not be delegated to any other 
     officer. The Commissioner of Internal Revenue, in his sole 
     discretion, may establish a procedure which will be used to 
     determine whether an individual should be referred to the 
     Commissioner of Internal Revenue for a determination by the 
     Commissioner under paragraph (1).
       (3) No appeal.--Any determination of the Commissioner of 
     Internal Revenue under this subsection may not be appealed in 
     any administrative or judicial proceeding.
       (d) TIGTA Reporting of Termination or Mitigation.--Section 
     7803(d)(1)(E) of the Internal Revenue Code of 1986 is amended 
     by inserting ``or section 7 of the Small Business Taxpayer 
     Bill of Rights Act of 2014'' after ``1998''.

     SEC. _08. ALTERNATIVE DISPUTE RESOLUTION PROCEDURES.

       (a) In General.--Section 7123 is amended by adding at the 
     end the following new subsection:
       ``(c) Availability of Dispute Resolutions.--
       ``(1) In general.--The procedures prescribed under 
     subsection (b)(1) and the pilot program established under 
     subsection (b)(2) shall provide that a taxpayer may request 
     mediation or arbitration in any case unless the Secretary has 
     specifically excluded the type of issue involved in such case 
     or the class of cases to which such case belongs as not 
     appropriate for resolution under such subsection. The 
     Secretary shall make any determination that excludes a type 
     of issue or a class of cases public within 5 working days and 
     provide an explanation for each determination.
       ``(2) Independent mediators.--
       ``(A) In general.--The procedures prescribed under 
     subsection (b)(1) shall provide the taxpayer an opportunity 
     to elect to have the mediation conducted by an independent, 
     neutral individual not employed by the Office of Appeals.
       ``(B) Cost and selection.--
       ``(i) In general.--Any taxpayer making an election under 
     subparagraph (A) shall be required--

       ``(I) to share the costs of such independent mediator 
     equally with the Office of Appeals, and
       ``(II) to limit the selection of the mediator to a roster 
     of recognized national or local neutral mediators.

[[Page 8364]]

       ``(ii) Exception.--Clause (i)(I) shall not apply to any 
     taxpayer who is an individual or who was a small business in 
     the preceding calendar year if such taxpayer had an adjusted 
     gross income that did not exceed 250 percent of the poverty 
     level, as determined in accordance with criteria established 
     by the Director of the Office of Management and Budget, in 
     the taxable year preceding the request.
       ``(iii) Small business.--For purposes of clause (ii), the 
     term `small business' has the meaning given such term under 
     section 41(b)(3)(D)(iii).
       ``(3) Availability of process.--The procedures prescribed 
     under subsection (b)(1) and the pilot program established 
     under subsection (b)(2) shall provide the opportunity to 
     elect mediation or arbitration at the time when the case is 
     first filed with the Office of Appeals and at any time before 
     deliberations in the appeal commence.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. _09. EXTENSION OF TIME FOR CONTESTING IRS LEVY.

       (a) Extension of Time for Return of Property Subject to 
     Levy.--Subsection (b) of section 6343 is amended by striking 
     ``9 months'' and inserting ``3 years''.
       (b) Period of Limitation on Suits.--Subsection (c) of 
     section 6532 is amended--
       (1) in paragraph (1) by striking ``9 months'' and inserting 
     ``3 years'', and
       (2) in paragraph (2) by striking ``9-month'' and inserting 
     ``3-year''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to--
       (1) levies made after the date of the enactment of this 
     Act, and
       (2) levies made on or before such date if the 9-month 
     period has not expired under section 6343(b) of the Internal 
     Revenue Code of 1986 (without regard to this section) as of 
     such date.

     SEC. _10. WAIVER OF INSTALLMENT AGREEMENT FEE.

       (a) In General.--Section 6159 is amended by redesignating 
     subsection (f) as subsection (g) and by inserting after 
     subsection (e) the following new subsection:
       ``(f) Waiver of Installment Agreement Fee.--The Secretary 
     shall waive the fees imposed on installment agreements under 
     this section for any taxpayer with an adjusted gross income 
     that does not exceed 250 percent of the poverty level, as 
     determined in accordance with criteria established by the 
     Director of the Office of Management and Budget, and who has 
     agreed to make payments under the installment agreement by 
     electronic payment through a debit instrument.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. _11. SUSPENSION OF RUNNING OF PERIOD FOR FILING PETITION 
                   OF SPOUSAL RELIEF AND COLLECTION CASES.

       (a) Petitions for Spousal Relief.--
       (1) In general.--Subsection (e) of section 6015 is amended 
     by adding at the end the following new paragraph:
       ``(6) Suspension of running of period for filing petition 
     in title 11 cases.--In the case of a person who is prohibited 
     by reason of a case under title 11, United States Code, from 
     filing a petition under paragraph (1)(A) with respect to a 
     final determination of relief under this section, the running 
     of the period prescribed by such paragraph for filing such a 
     petition with respect to such final determination shall be 
     suspended for the period during which the person is so 
     prohibited from filing such a petition, and for 60 days 
     thereafter.''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to petitions filed under section 6015(e) of the 
     Internal Revenue Code of 1986 after the date of the enactment 
     of this Act.
       (b) Collection Proceedings.--
       (1) In general.--Subsection (d) of section 6330 is 
     amended--
       (A) by striking ``appeal such determination to the Tax 
     Court'' in paragraph (1) and inserting ``petition the Tax 
     Court for review of such determination'',
       (B) by striking ``Judicial review of determination'' in the 
     heading of paragraph (1) and inserting ``Petition for review 
     by tax court'',
       (C) by redesignating paragraph (2) as paragraph (3), and
       (D) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) Suspension of running of period for filing petition 
     in title 11 cases.--In the case of a person who is prohibited 
     by reason of a case under title 11, United States Code, from 
     filing a petition under paragraph (1) with respect to a 
     determination under this section, the running of the period 
     prescribed by such subsection for filing such a petition with 
     respect to such determination shall be suspended for the 
     period during which the person is so prohibited from filing 
     such a petition, and for 30 days thereafter.''.
       (2) Conforming amendment.--Subsection (c) of section 6320 
     is amended by striking ``(2)(B)'' and inserting ``(3)(B)''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to petitions filed under section 6330 of the 
     Internal Revenue Code of 1986 after the date of the enactment 
     of this Act.

     SEC. _12. VENUE FOR APPEAL OF SPOUSAL RELIEF AND COLLECTION 
                   CASES.

       (a) In General.--Paragraph (1) of section 7482(b) is 
     amended--
       (1) by striking ``or'' at the end of subparagraph (E),
       (2) by striking the period at the end of subparagraph (F) 
     and inserting a comma, and
       (3) by inserting after subparagraph (F) the following new 
     subparagraphs:
       ``(G) in the case of a petition under section 6015(e), the 
     legal residence of the petitioner, or
       ``(H) in the case of a petition under section 6320 or 
     6330--
       ``(i) the legal residence of the petitioner if the 
     petitioner is an individual, and
       ``(ii) the principal place of business or principal office 
     or agency if the petitioner is an entity other than an 
     individual.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to petitions filed after the date of enactment of 
     this Act.

     SEC. _13. INCREASE IN MONETARY PENALTIES FOR CERTAIN 
                   UNAUTHORIZED DISCLOSURES OF INFORMATION.

       (a) In General.--Paragraphs (1), (2), (3), and (4) of 
     section 7213(a) are each amended by striking ``$5,000'' and 
     inserting ``$10,000''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to disclosures made after the date of the 
     enactment of this Act.

     SEC. _14. DE NOVO TAX COURT REVIEW OF CLAIMS FOR EQUITABLE 
                   INNOCENT SPOUSE RELIEF.

       (a) In General.--Subparagraph (A) of section 6015(e)(1) is 
     amended by adding at the end the following new flush 
     sentence:
     ``Any review of a determination by the Secretary with respect 
     to a claim for equitable relief under subsection (f) shall be 
     reviewed de novo by the Tax Court.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to petitions filed or pending before the Tax 
     Court on and after the date of the enactment of this Act.

     SEC. _15. BAN ON RAISING NEW ISSUES ON APPEAL.

       (a) In General.--Chapter 77 is amended by adding at the end 
     the following new section:

     ``SEC. 7529. PROHIBITION ON INTERNAL REVENUE SERVICE RAISING 
                   NEW ISSUES IN AN INTERNAL APPEAL.

       ``(a) In General.--In reviewing an appeal of any 
     determination initially made by the Internal Revenue Service, 
     the Internal Revenue Service Office of Appeals may not 
     consider or decide any issue that is not within the scope of 
     the initial determination.
       ``(b) Certain Issues Deemed Outside of Scope of 
     Determination.--For purposes of subsection (a), the following 
     matters shall be considered to be not within the scope of a 
     determination:
       ``(1) Any issue that was not raised in a notice of 
     deficiency or an examiner's report which is the subject of 
     the appeal.
       ``(2) Any deficiency in tax which was not included in the 
     initial determination.
       ``(3) Any theory or justification for a tax deficiency 
     which was not considered in the initial determination.
       ``(c) No Inference With Respect to Issues Raised by 
     Taxpayers.--Nothing in this section shall be construed to 
     provide any limitation in addition to any limitations in 
     effect on the date of the enactment of this section on the 
     right of a taxpayer to raise an issue, theory, or 
     justification on an appeal from a determination initially 
     made by the Internal Revenue Service that was not within the 
     scope of the initial determination.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     77 is amended by adding at the end the following new item:

``Sec. 7529. Prohibition on Internal Revenue Service raising new issues 
              in an internal appeal.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to matters filed or pending with the Internal 
     Revenue Service Office of Appeals on or after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 3151. Mr. GRAHAM (for himself and Mr. Scott) submitted an 
amendment intended to be proposed by him to the bill H.R. 3474, to 
amend the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the end, add the following:

                       TITLE _--OTHER PROVISIONS

     SEC. _01. ALLOCATION OF CREDIT FOR PRODUCTION OF ADVANCED 
                   NUCLEAR POWER FACILITIES TO PRIVATE PARTNERS OF 
                   TAX-EXEMPT ENTITIES.

       (a) In General.--Section 45J is amended--
       (1) by redesignating subsection (e) as subsection (f), and
       (2) by inserting after subsection (d) the following new 
     subsection:
       ``(e) Special Rule for Public-private Partnerships.--
       ``(1) In general.--In the case of an advanced nuclear power 
     facility which is owned

[[Page 8365]]

     by a public private partnership or co-owned by a qualified 
     public entity and a non-public entity, any qualified public 
     entity which is a member of such partnership or a co-owner of 
     such facility may transfer such entity's allocation of the 
     credit under subsection (a), or any portion thereof, to any 
     non-public entity which is a member of such partnership or 
     which is a co-owner of such facility, except that the 
     aggregate allocations of such credit claimed by such non-
     public entity shall be subject to the limitations under 
     subsections (b) and (c) and section 38.
       ``(2) Qualified public entity.--For purposes of this 
     subsection, the term `qualified public entity' means--
       ``(A) a Federal, State, or local government entity, or any 
     political subdivision, agency, or instrumentality thereof,
       ``(B) a mutual or cooperative electric company described in 
     section 501(c)(12) or section 1381(a)(2), or
       ``(C) a not-for-profit electric utility which has or had 
     received a loan or loan guarantee under the Rural 
     Electrification Act of 1936.
       ``(3) Verification of transfer of allocation.--A qualified 
     public entity that makes a transfer under paragraph (1), and 
     a nonpublic entity that receives an allocation under such a 
     transfer, shall provide verification of such transfer in such 
     manner and at such time as the Secretary shall prescribe.
       ``(4) Treatment of transfer under private use rules.--For 
     purposes of section 141(b)(1), any benefit derived by a non-
     public entity in connection with a transfer under paragraph 
     (1) shall not be taken into account as a private business 
     use.''.
       (b) Coordination With General Business Credit.--Subsection 
     (c) of section 38 is amended by adding at the end the 
     following new paragraph:
       ``(7) Special rule for credit for production from advanced 
     nuclear power facilities.--
       ``(A) In general.--In the case of the credit for production 
     from advanced nuclear power facilities determined under 
     section 45J(a), paragraph (1) shall not apply with respect to 
     any qualified public entity (as defined in section 45J(e)(2)) 
     which transfers the entity's allocation of such credit to a 
     non-public partner or a co-owner of such facility as provided 
     in section 45J(e)(1).
       ``(B) Verification of transfer.--Subparagraph (A) shall not 
     apply to any qualified public entity unless such entity 
     provides verification of a transfer of credit allocation as 
     required under section 45J(e)(3).''.
       (c) Special Rule for Proceeds of Transfers for Mutual or 
     Cooperative Electric Companies.--Section 501(c)(12) is 
     amended by adding at the end the following new subparagraph:
       ``(I) In the case of a mutual or cooperative electric 
     company described in this paragraph or an organization 
     described in section 1381(a)(2), income received or accrued 
     from a transfer described in section 45J(e)(1) shall be 
     treated as an amount collected from members for the sole 
     purpose of meeting losses and expenses.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 3152. Mr. COBURN submitted an amendment intended to be proposed to 
amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend 
the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. DISCLOSURE OF PUBLIC COMPANIES RECEIVING CERTAIN TAX 
                   BENEFITS.

       (a) In General.--Notwithstanding section 6103 of the 
     Internal Revenue Code of 1986 or any other provision of law, 
     the Secretary of the Treasury, or the Secretary's delegate, 
     shall provide to administrator of the website established 
     under the Federal Funding Accountability and Transparency Act 
     of 2006 (31 U.S.C. 6101 note), for purposes of inclusion on 
     such website, the information described in subsection (b) 
     with respect to any corporation--
       (1) the stock of which is publicly traded on an established 
     securities market, and
       (2) which is allowed an applicable tax benefit.
       (b) Information Included.--The information described in 
     this subsection is--
       (1) the name of the corporation,
       (2) the type of applicable tax benefit, and
       (3) the amount of the applicable tax benefit.
       (c) Applicable Tax Benefit.--For purposes of this section, 
     the term ``applicable tax benefit'' means, with respect to 
     any taxpayer for any taxable year beginning after December 
     31, 2013, any credit, deduction, or other benefit allowed to 
     the taxpayer by reason of an amendment made by--
       (1) part II or part III of subtitle A of title I of this 
     Act,
       (2) subtitle B of title I of this Act, or
       (3) section 107(b) of this Act.
                                 ______
                                 
  SA 3153. Mr. COBURN submitted an amendment intended to be proposed to 
amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend 
the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       Strike section 115.
                                 ______
                                 
  SA 3154. Mr. LEE submitted an amendment intended to be proposed to 
amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend 
the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       Beginning on page 47, strike line 10 and all that follows 
     through page 50, line 9.
       Beginning on page 50, strike line 19 and all that follows 
     through page 55, line 17.
       On page 56, strike line 6 and all that follows through line 
     14.
       On page 58, strike line 3 and all that follows through line 
     11 and insert the following:
     case of any alternative fuel credit properly determined under 
     section 6426(d) of the Internal Revenue Code of 1986 for 
     periods after December 31, 2013, and before the date of the 
     enactment of this Act,
       Beginning on page 59, strike line 7 and all that follows 
     through page 60, line 2.
       At the appropriate place, insert the following:

      TITLE VI--ENERGY FREEDOM AND ECONOMIC PROSPERITY ACT OF 2014

                     Subtitle A--Short Title; etc.

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``Energy Freedom and 
     Economic Prosperity Act of 2014''.

               Subtitle B--Repeal of Energy Tax Subsidies

     SEC. _11. EARLY TERMINATION OF CREDIT FOR QUALIFIED FUEL CELL 
                   MOTOR VEHICLES.

       (a) In General.--Section 30B is repealed.
       (b) Conforming Amendments.--
       (1) Subparagraph (A) of section 24(b)(3) is amended by 
     striking ``, 30B''.
       (2) Paragraph (2) of section 25B(g) is amended by striking 
     ``, 30B,''.
       (3) Subsection (b) of section 38 is amended by striking 
     paragraph (25).
       (4) Subsection (a) of section 1016 is amended by striking 
     paragraph (35) and by redesignating paragraphs (36) and (37) 
     as paragraphs (35) and (36), respectively.
       (5) Subsection (m) of section 6501 is amended by striking 
     ``, 30B(h)(9)''.
       (c) Clerical Amendment.--The table of sections for subpart 
     B of part IV of subchapter A of chapter 1 is amended by 
     striking the item relating to section 30B.
       (d) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2014.

     SEC. _12. EARLY TERMINATION OF NEW QUALIFIED PLUG-IN ELECTRIC 
                   DRIVE MOTOR VEHICLES.

       (a) In General.--Section 30D is repealed.
       (b) Effective Date.--The amendment made by this section 
     shall apply to vehicles placed in service after the date of 
     the enactment of this Act.

     SEC. _13. REPEAL OF CREDIT FOR ALCOHOL USED AS FUEL.

       (a) In General.--Section 40, as amended by this Act, is 
     repealed.
       (b) Conforming Amendments.--
       (1) Subsection (b) of section 38 is amended by striking 
     paragraph (3).
       (2) Subsection (c) of section 196 is amended by striking 
     paragraph (3) and by redesignating paragraphs (4) through 
     (14) as paragraphs (3) through (13), respectively.
       (3) Paragraph (1) of section 4101(a) is amended by striking 
     ``, and every person producing cellulosic biofuel (as defined 
     in section 40(b)(6)(E))''.
       (4) Paragraph (1) of section 4104(a) is amended by striking 
     ``, 40''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to fuel sold or used after the date of the 
     enactment of this Act.

     SEC. _14. REPEAL OF ENHANCED OIL RECOVERY CREDIT.

       (a) In General.--Section 43 is repealed.
       (b) Conforming Amendments.--
       (1) Subsection (b) of section 38 is amended by striking 
     paragraph (6).
       (2) Paragraph (4) of section 45Q(d) is amended by inserting 
     ``(as in effect on the day before the date of the enactment 
     of the Energy Freedom and Economic Prosperity Act of 2014)'' 
     after ``section 43(c)(2)''.
       (3) Subsection (c) of section 196, as amended by sections 
     105 and 106 of this Act, is amended by striking paragraph (5) 
     and by redesignating paragraphs (6) through (12) as 
     paragraphs (5) through (11), respectively.

[[Page 8366]]

       (c) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 is amended by 
     striking the item relating to section 43.
       (d) Effective Date.--The amendments made by this section 
     shall apply to costs paid or incurred after December 31, 
     2014.

     SEC. _15. REPEAL OF CREDIT FOR PRODUCING OIL AND GAS FROM 
                   MARGINAL WELLS.

       (a) In General.--Section 45I is repealed.
       (b) Conforming Amendment.--Subsection (b) of section 38 is 
     amended by striking paragraph (19).
       (c) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 is amended by 
     striking the item relating to section 45I.
       (d) Effective Date.--The amendments made by this section 
     shall apply to production in taxable years beginning after 
     December 31, 2014.

     SEC. _16. TERMINATION OF CREDIT FOR PRODUCTION FROM ADVANCED 
                   NUCLEAR POWER FACILITIES.

       (a) In General.--Subparagraph (B) of section 45J(d)(1) is 
     amended by striking ``January 1, 2021'' and inserting 
     ``January 1, 2015''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2014.

     SEC. _17. REPEAL OF CREDIT FOR CARBON DIOXIDE SEQUESTRATION.

       (a) In General.--Section 45Q is repealed.
       (b) Effective Date.--The amendment made by this section 
     shall apply to carbon dioxide captured after December 31, 
     2014.

     SEC. _18. TERMINATION OF ENERGY CREDIT.

       (a) In General.--Section 48 is amended by adding at the end 
     the following new subsection:
       ``(e) Termination.--No credit shall be allowed under 
     subsection (a) for any period after December 31, 2014.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2014.

     SEC. _19. REPEAL OF QUALIFYING ADVANCED COAL PROJECT.

       (a) In General.--Section 48A is repealed.
       (b) Conforming Amendment.--Section 46 is amended by 
     striking paragraph (3) and by redesignating paragraphs (4), 
     (5), and (6) as paragraphs (3), (4), and (5), respectively.
       (c) Clerical Amendment.--The table of sections for subpart 
     E of part IV of subchapter A of chapter 1 is amended by 
     striking the item relating to section 48A.
       (d) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2014.

     SEC. _20. REPEAL OF QUALIFYING GASIFICATION PROJECT CREDIT.

       (a) In General.--Section 48B is repealed.
       (b) Conforming Amendment.--Section 46, as amended by this 
     Act, is amended by striking paragraph (3) and by 
     redesignating paragraphs (4) and (5) as paragraphs (3) and 
     (4), respectively.
       (c) Clerical Amendment.--The table of sections for subpart 
     E of part IV of subchapter A of chapter 1 is amended by 
     striking the item relating to section 48B.
       (d) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2014.

     SEC. _21. REPEAL OF QUALIFYING ADVANCED ENERGY PROJECT 
                   CREDIT.

       (a) In General.--Section 48C is repealed.
       (b) Conforming Amendment.--Section 46, as amended by this 
     Act, is amended by striking paragraph (3) and by 
     redesignating paragraph (4) as paragraph (3).
       (c) Clerical Amendment.--The table of sections for subpart 
     E of part IV of subchapter A of chapter 1 is amended by 
     striking the item relating to section 48C.
       (d) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2014.

           Subtitle C--Reduction of Corporate Income Tax Rate

     SEC. _31. CORPORATE INCOME TAX RATE REDUCED.

       (a) In General.--Not later than 1 year after the date of 
     the enactment of this Act, the Secretary of the Treasury 
     shall prescribe, in lieu of the rates of tax under paragraphs 
     (1) and (2) of section 11(b), section 1201(a), and paragraphs 
     (1), (2), and (6) of section 1445(e) of the Internal Revenue 
     Code of 1986, such rates of tax as the Secretary estimates 
     would result in--
       (1) a decrease in revenue to the Treasury for taxable years 
     beginning during the 10-year period beginning on the date of 
     the enactment of this Act, equal to
       (2) the increase in revenue for such taxable years by 
     reason of the amendments made by title I of this Act.
       (b) Maintenance of Graduated Rates.--In prescribing the tax 
     rates under subsection (a), the Secretary shall ensure that 
     each rate modified under such subsection is reduced by a 
     uniform percentage.
       (c) Effective Date.--The rates prescribed by the Secretary 
     under subsection (a) shall apply to taxable years beginning 
     more than 1 year after the date of the enactment of this Act.
                                 ______
                                 
  SA 3155. Mr. McCAIN (for himself, Mr. Coburn, and Mr. Lee) submitted 
an amendment intended to be proposed to amendment SA 3060 proposed by 
Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 
1986 to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       Strike section 129.
                                 ______
                                 
  SA 3156. Mr. McCAIN (for himself, Mr. Coburn, and Mr. Lee) submitted 
an amendment intended to be proposed to amendment SA 3060 proposed by 
Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 
1986 to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       Strike section 123.
                                 ______
                                 
  SA 3157. Mr. McCAIN (for himself, Mr. Coburn, and Mr. Lee) submitted 
an amendment intended to be proposed to amendment SA 3060 proposed by 
Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 
1986 to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       Strike section 121.
                                 ______
                                 
  SA 3158. Mr. McCAIN submitted an amendment intended to be proposed by 
him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the end, add the following:

                 TITLE _--FOREIGN EARNINGS REINVESTMENT

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``Foreign Earnings 
     Reinvestment Act''.

     SEC. _02. ALLOWANCE OF TEMPORARY DIVIDENDS RECEIVED DEDUCTION 
                   FOR DIVIDENDS RECEIVED FROM A CONTROLLED 
                   FOREIGN CORPORATION.

       (a) Applicability of Provision.--
       (1) In general.--Subsection (f) of section 965 is amended 
     to read as follows:
       ``(f) Election; Election Year.--
       ``(1) In general.--The taxpayer may elect to apply this 
     section to--
       ``(A) the taxpayer's last taxable year which begins before 
     the date of the enactment of the Foreign Earnings 
     Reinvestment Act, or
       ``(B) the taxpayer's first taxable year which begins during 
     the 1-year period beginning on such date.
     Such election may be made for a taxable year only if made on 
     or before the due date (including extensions) for filing the 
     return of tax for such taxable year.
       ``(C) Election year.--For purposes of this section, the 
     term `election year' means the taxable year--
       ``(i) which begins after the date that is one year before 
     the date of the enactment of the Foreign Earnings 
     Reinvestment Act, and
       ``(ii) to which the taxpayer elects under paragraph (1) to 
     apply this section.''.
       (2) Conforming amendments.--
       (A) Extraordinary dividends.--Section 965(b)(2) is 
     amended--
       (i) by striking ``June 30, 2003'' and inserting ``April 30, 
     2014'', and
       (ii) by adding at the end the following new sentence: ``The 
     amounts described in clauses (i), (ii), and (iii) shall not 
     include any amounts which were taken into account in 
     determining the deduction under subsection (a) for any prior 
     taxable year.''.
       (B) Determinations relating to related party 
     indebtedness.--Section 965(b)(3)(B) is amended by striking 
     ``October 3, 2004'' and inserting ``April 30, 2014''.
       (C) Determinations relating to base period.--Section 
     965(c)(2) is amended by striking ``June 30, 2003'' and 
     inserting ``April 30, 2014''.
       (b) Deduction Includes Current and Accumulated Foreign 
     Earnings.--
       (1) In general.--Paragraph (1) of section 965(b) is amended 
     to read as follows:
       ``(1) In general.--The amount of dividends taken into 
     account under subsection (a) shall not exceed the sum of the 
     current and accumulated earnings and profits described in 
     section 959(c)(3) for the year a deduction is claimed under 
     subsection (a), without diminution by reason of any 
     distributions made during the election year, for all 
     controlled

[[Page 8367]]

     foreign corporations of the United States shareholder.''.
       (2) Conforming amendments.--
       (A) Section 965(c), as amended by subsection (a), is 
     amended by striking paragraph (1) and by redesignating 
     paragraphs (2), (3), (4), and (5), as paragraphs (1), (2), 
     (3), and (4), respectively.
       (B) Paragraph (4) of section 965(c), as redesignated by 
     subparagraph (A), is amended to read as follows:
       ``(4) Controlled groups.--All United States shareholders 
     which are members of an affiliated group filing a 
     consolidated return under section 1501 shall be treated as 
     one United States shareholder.''.
       (c) Amount of Deduction.--
       (1) In general.--Paragraph (1) of section 965(a) is amended 
     by striking ``85 percent'' and inserting ``75 percent''.
       (2) Bonus deduction in subsequent taxable year for 
     increasing jobs.--Section 965 is amended by adding at the end 
     the following new subsection:
       ``(g) Bonus Deduction.--
       ``(1) In general.--In the case of any taxpayer who makes an 
     election to apply this section, there shall be allowed as a 
     deduction for the first taxable year following the election 
     year an amount equal to the applicable percentage of the cash 
     dividends which are taken into account under subsection (a) 
     with respect to such taxpayer for the election year.
       ``(2) Applicable percentage.--For purposes of paragraph 
     (1), the applicable percentage is the amount which bears the 
     same ratio (not greater than 1) to 10 percent as--
       ``(A) the excess (if any) of--
       ``(i) the qualified payroll of the taxpayer for the 
     calendar year which begins with or within the first taxable 
     year following the election year, over
       ``(ii) the qualified payroll of the taxpayer for calendar 
     year 2013, bears to
       ``(B) 10 percent of the qualified payroll of the taxpayer 
     for calendar year 2013.
       ``(3) Qualified payroll.--For purposes of this paragraph:
       ``(A) In general.--The term `qualified payroll' means, with 
     respect to a taxpayer for any calendar year, the aggregate 
     wages (as defined in section 3121(a)) paid by the corporation 
     during such calendar year.
       ``(B) Exception for changes in ownership of trades or 
     businesses.--
       ``(i) Acquisitions.--If, after December 31, 2012, and 
     before the close of the first taxable year following the 
     election year, a taxpayer acquires the trade or business of a 
     predecessor, then the qualified payroll of such taxpayer for 
     any calendar year shall be increased by so much of the 
     qualified payroll of the predecessor for such calendar year 
     as was attributable to the trade or business acquired by the 
     taxpayer.
       ``(ii) Dispositions.--If, after December 31, 2012, and 
     before the close of the first taxable year following the 
     election year, a taxpayer disposes of a trade or business, 
     then--

       ``(I) the qualified payroll of such taxpayer for calendar 
     year 2013 shall be decreased by the amount of wages for such 
     calendar year as were attributable to the trade or business 
     which was disposed of by the taxpayer, and
       ``(II) if the disposition occurs after the beginning of the 
     first taxable year following the election year, the qualified 
     payroll of such taxpayer for the calendar year which begins 
     with or within such taxable year shall be decreased by the 
     amount of wages for such calendar year as were attributable 
     to the trade or business which was disposed of by the 
     taxpayer.

       ``(C) Special rule.--For purposes of determining qualified 
     payroll for any calendar year after calendar year 2014, such 
     term shall not include wages paid to any individual if such 
     individual received compensation from the taxpayer for 
     services performed--
       ``(i) after the date of the enactment of this paragraph, 
     and
       ``(ii) at a time when such individual was not an employee 
     of the taxpayer.''.
       (3) Reduction for failure to maintain employment levels.--
     Paragraph (4) of section 965(b) is amended to read as 
     follows:
       ``(4) Reduction in benefits for failure to maintain 
     employment levels.--
       ``(A) In general.--If, during the period consisting of the 
     calendar month in which the taxpayer first receives a 
     distribution described in subsection (a)(1) and the 
     succeeding 23 calendar months, the taxpayer does not maintain 
     an average employment level at least equal to the taxpayer's 
     prior average employment, an additional amount equal to 
     $75,000 multiplied by the number of employees by which the 
     taxpayer's average employment level during such period falls 
     below the prior average employment (but not exceeding the 
     aggregate amount allowed as a deduction pursuant to 
     subsection (a)(1)) shall be taken into income by the taxpayer 
     during the taxable year that includes the final day of such 
     period.
       ``(B) Average employment level.--For purposes of this 
     paragraph, the taxpayer's average employment level for a 
     period shall be the average number of full-time United States 
     employees of the taxpayer, measured at the end of each month 
     during the period.
       ``(C) Prior average employment.--For purposes of this 
     paragraph, the taxpayer's `prior average employment' shall be 
     the average number of full-time United States employees of 
     the taxpayer during the period consisting of the 24 calendar 
     months immediately preceding the calendar month in which the 
     taxpayer first receives a distribution described in 
     subsection (a)(1).
       ``(D) Full-time united states employee.--For purposes of 
     this paragraph--
       ``(i) In general.--The term `full-time United States 
     employee' means an individual who provides services in the 
     United States as a full-time employee, based on the 
     employer's standards and practices; except that regardless of 
     the employer's classification of the employee, an employee 
     whose normal schedule is 40 hours or more per week is 
     considered a full-time employee.
       ``(ii) Exception for changes in ownership of trades or 
     businesses.--Such term does not include--

       ``(I) any individual who was an employee, on the date of 
     acquisition, of any trade or business acquired by the 
     taxpayer during the 24-month period referred to in 
     subparagraph (A), and
       ``(II) any individual who was an employee of any trade or 
     business disposed of by the taxpayer during the 24-month 
     period referred to in subparagraph (A) or the 24-month period 
     referred to in subparagraph (C).

       ``(E) Aggregation rules.--In determining the taxpayer's 
     average employment level and prior average employment, all 
     domestic members of a controlled group shall be treated as a 
     single taxpayer.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 3159. Mr. PORTMAN submitted an amendment intended to be proposed 
to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to 
amend the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the end, add the following:

                       TITLE _--OTHER PROVISIONS

     SEC. _01. MACROECONOMIC IMPACT ANALYSES FOR MAJOR REVENUE 
                   LEGISLATION.

       (a) In General.--Part A of title IV of the Congressional 
     Budget Act of 1974 is amended by adding at the end the 
     following new section:


      ``macroeconomic impact analysis of major revenue legislation

       ``Sec. 407.  (a) Joint Committee on Taxation.--The Joint 
     Committee on Taxation shall, to the extent practicable, 
     prepare for each major revenue bill or resolution which is--
       ``(1) reported by the Committee on Ways and Means of the 
     House of Representatives or the Committee on Finance of the 
     Senate; or
       ``(2) considered on the floor of the House of 
     Representatives or the Senate,
     as a supplement to estimates prepared under section 402, a 
     macroeconomic impact analysis of the budgetary effects of 
     such bill or resolution for the 10 fiscal-year period 
     beginning with the first fiscal year for which an estimate 
     was prepared under section 402 and each of the next three 10 
     fiscal-year periods. To the extent practicable, the Joint 
     Committee on Taxation's macroeconomic impact analysis shall 
     be included in full as part of the Congressional Budget 
     Office report accompanying such bill or resolution under 
     section 402. If a macroeconomic impact analysis is not 
     included as part of the Congressional Budget Office report 
     relating to a major revenue bill or resolution, the Chairman 
     of the Committee reporting the bill or resolution shall cause 
     the analysis to be entered into the Congressional Record of 
     the Senate and House of Representatives.
       ``(b) Definitions.--As used in this section:
       ``(1) Macroeconomic impact analysis.--The term 
     `macroeconomic impact analysis' means--
       ``(A) an estimate of the changes in economic output, 
     employment, interest rates, capital stock, and tax revenues 
     expected to result from the revenue provisions in the 
     proposal to which section 201(f) applies;
       ``(B) an estimate of revenue feedback expected to result 
     from those revenue provisions; and
       ``(C) a statement identifying the critical assumptions and 
     the source of data underlying that estimate, to the extent 
     necessary to make the models comprehensible to academic and 
     public policy analysts.
       ``(2) Major revenue bill or resolution.--The term `major 
     revenue bill or resolution' means a bill, resolution, or 
     conference report for which--
       ``(A) either--
       ``(i) the sum of the positive changes in revenues resulting 
     from such measure (not including the impact of any timing 
     shifts for the due date for estimated corporate income tax 
     payments) for any fiscal year in the period for which an 
     estimate is prepared under section 402; or
       ``(ii) the absolute value of the sum of the negative 
     changes in revenues resulting from

[[Page 8368]]

     such measure (not including the impact of any timing shifts 
     for the due date for estimated corporate income tax payments) 
     for any fiscal year for which such an estimate is prepared,
     is greater than
       ``(B) 0.25 percent of the current projected gross domestic 
     product of the United States (as determined by the Bureau of 
     Economic Analysis of the Department of Commerce) for such 
     fiscal year.
       ``(3) Revenue feedback.--The term `revenue feedback' means 
     changes in revenue resulting from changes in economic growth 
     as the result of the enactment of any major revenue bill or 
     resolution.''.
       (b) Conforming Amendment.--The table of contents set forth 
     in section 1(b) of the Congressional Budget and Impoundment 
     Control Act of 1974 is amended by inserting after the item 
     relating to section 406 the following new item:
       ``Sec. 407. Macroeconomic impact analysis of major revenue 
           legislation.''.
                                 ______
                                 
  SA 3160. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. DISCLOSURE OF PUBLIC COMPANIES RECEIVING CERTAIN TAX 
                   BENEFITS.

       (a) In General.--Notwithstanding section 6103 of the 
     Internal Revenue Code of 1986 or any other provision of law, 
     the Secretary of the Treasury, or the Secretary's delegate, 
     shall provide to administrator of the website established 
     under the Federal Funding Accountability and Transparency Act 
     of 2006 (31 U.S.C. 6101 note), for purposes of inclusion on 
     such website, the information described in subsection (b) 
     with respect to any corporation--
       (1) the stock of which is publicly traded on an established 
     securities market, and
       (2) which is allowed an applicable tax benefit.
       (b) Information Included.--The information described in 
     this subsection is--
       (1) the name of the corporation,
       (2) the type of applicable tax benefit, and
       (3) the amount of the applicable tax benefit.
       (c) Applicable Tax Benefit.--For purposes of this section, 
     the term ``applicable tax benefit'' means, with respect to 
     any taxpayer for any taxable year beginning after December 
     31, 2013, any credit, deduction, or other benefit allowed to 
     the taxpayer by reason of an amendment made by--
       (1) part II or part III of subtitle A of title I of this 
     Act,
       (2) subtitle B of title I of this Act, or
       (3) section 107(b) of this Act.
                                 ______
                                 
  SA 3161. Mr. TOOMEY (for himself, Mr. Burr, Mr. Cornyn, Mr. Coats, 
Ms. Ayotte, Mr. McConnell, Mr. Roberts, Mr. Crapo, Mr. Alexander, Mr. 
Hatch, Mr. Isakson, Ms. Collins, and Mr. Enzi) submitted an amendment 
intended to be proposed to amendment SA 3060 proposed by Mr. Wyden to 
the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow 
employers to exempt employees with health coverage under TRICARE or the 
Veterans Administration from being taken into account for purposes of 
the employer mandate under the Patient Protection and Affordable Care 
Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                       TITLE __--OTHER PROVISIONS

     SEC. ___. REPEAL OF MEDICAL DEVICE TAX.

       (a) In General.--Chapter 32 is amended by striking 
     subchapter E.
       (b) Conforming Amendments.--
       (1) Subsection (a) of section 4221 is amended by striking 
     the last sentence.
       (2) Paragraph (2) of section 6416(b) is amended by striking 
     the last sentence.
       (c) Clerical Amendment.--The table of subchapters for 
     chapter 32 is amended by striking the item related to 
     subchapter E.
       (d) Effective Date.--The amendments made by this section 
     shall apply to sales after the date of the enactment of this 
     Act.
                                 ______
                                 
  SA 3162. Mr. ENZI (for himself and Mr. Barrasso) submitted an 
amendment intended to be proposed to amendment SA 3060 proposed by Mr. 
Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     TITLE __--TAX RETURN DUE DATE SIMPLIFICATION AND MODERNIZATION

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``Tax Return Due Date 
     Simplification and Modernization Act of 2013''.

     SEC. _02. NEW DUE DATE FOR PARTNERSHIP FORM 1065, S 
                   CORPORATION FORM 1120S, AND C CORPORATION FORM 
                   1120.

       (a) Partnerships.--
       (1) In general.--Section 6072 is amended by adding at the 
     end the following new subsection:
       ``(f) Returns of Partnerships.--Returns of partnerships 
     under section 6031 made on the basis of the calendar year 
     shall be filed on or before the 15th day of March following 
     the close of the calendar year, and such returns made on the 
     basis of a fiscal year shall be filed on or before the 15th 
     day of the third month following the close of the fiscal 
     year.''.
       (2) Conforming amendment.--Section 6072(a) is amended by 
     striking ``6017, or 6031'' and inserting ``or 6017''.
       (b) S Corporations.--
       (1) In general.--So much of subsection (b) of 6072 as 
     precedes the second sentence thereof is amended to read as 
     follows:
       ``(b) Returns of Certain Corporations.--Returns of S 
     corporations under sections 6012 and 6037 made on the basis 
     of the calendar year shall be filed on or before the 31st day 
     of March following the close of the calendar year, and such 
     returns made on the basis of a fiscal year shall be filed on 
     or before the last day of the third month following the close 
     of the fiscal year.''.
       (2) Conforming amendments.--
       (A) Section 1362(b) is amended--
       (i) by striking ``15th'' each place it appears and 
     inserting ``last'',
       (ii) by striking ``2\1/2\'' each place it appears and 
     inserting ``3'', and
       (iii) by striking ``2 months and 15 days'' in paragraph (4) 
     and inserting ``3 months''.
       (B) Section 1362(d)(1)(C)(i) is amended by striking 
     ``15th'' and inserting ``last''.
       (C) Section 1362(d)(1)(C)(ii) is amended by striking ``such 
     15th day'' and inserting ``the last day of the 3d month 
     thereof''.
       (c) Conforming Amendments Relating to C Corporations.--
       (1) Section 170(a)(2)(B) is amended by striking ``third 
     month'' and inserting ``4th month''.
       (2) Section 563 is amended by striking ``third month'' each 
     place it appears and inserting ``4th month''.
       (3) Section 1354(d)(1)(B)(i) is amended by striking ``3d 
     month'' and inserting ``4th month''.
       (4) Subsection (a) and (c) of section 6167 are each amended 
     by striking ``third month'' and inserting ``4th month''.
       (5) Section 6425(a)(1) is amended by striking ``third 
     month'' and inserting ``4th month''.
       (6) Subsections (b)(2)(A), (g)(3), and (h)(1) of section 
     6655 are each amended by striking ``3rd month'' and inserting 
     ``4th month''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to returns for taxable years beginning after 
     December 31, 2013.

     SEC. _03. MODIFICATION OF DUE DATES BY REGULATION.

       In the case of returns for taxable years beginning after 
     December 31, 2013, the Secretary of the Treasury or the 
     Secretary's delegate shall modify appropriate regulations to 
     provide as follows:
       (1) The maximum extension for the returns of partnerships 
     filing Form 1065 shall be a 6-month period beginning on the 
     due date for filing the return (without regard to any 
     extensions).
       (2) The maximum extension for the returns of trusts and 
     estates filing Form 1041 shall be a 5\1/2\-month period 
     beginning on the due date for filing the return (without 
     regard to any extensions).
       (3) The maximum extension for the returns of employee 
     benefit plans filing Form 5500 shall be an automatic 3\1/2\-
     month period beginning on the due date for filing the return 
     (without regard to any extensions).
       (4) The maximum extension for the Forms 990 (series) 
     returns of organizations exempt from income tax shall be an 
     automatic 6-month period beginning on the due date for filing 
     the return (without regard to any extensions).
       (5) The maximum extension for the returns of organizations 
     exempt from income tax that are required to file Form 4720 
     returns of excise taxes shall be an automatic 6-month period 
     beginning on the due date for filing the return (without 
     regard to any extensions).
       (6) The maximum extension for the returns of trusts 
     required to file Form 5227 shall be an automatic 6-month 
     period beginning on the due date for filing the return 
     (without regard to any extensions).
       (7) The maximum extension for the returns of Black Lung 
     Benefit Trusts required to file Form 6069 returns of excise 
     taxes shall be an automatic 6-month period beginning on the

[[Page 8369]]

     due date for filing the return (without regard to any 
     extensions).
       (8) The maximum extension for a taxpayer required to file 
     Form 8870 shall be an automatic 6-month period beginning on 
     the due date for filing the return (without regard to any 
     extensions).
       (9) The due date of Form 3520-A, Annual Information Return 
     of a Foreign Trust with a United States Owner, shall be the 
     15th day of the 4th month after the close of the trust's 
     taxable year, and the maximum extension shall be a 6-month 
     period beginning on such day.
       (10) The due date of Form TD F 90-22.1 (relating to Report 
     of Foreign Bank and Financial Accounts) shall be April 15 
     with a maximum extension for a 6-month period ending on 
     October 15, and with provision for an extension under rules 
     similar to the rules of 26 C.F.R. 1.6081-5. For any taxpayer 
     required to file such form for the first time, the Secretary 
     of the Treasury may waive any penalty for failure to timely 
     request or file an extension.
       (11) Taxpayers filing Form 3520, Annual Return to Report 
     Transactions with Foreign Trusts and Receipt of Certain 
     Foreign Gifts, shall be allowed to extend the time for filing 
     such form separately from the income tax return of the 
     taxpayer, for an automatic 6-month period beginning on the 
     due date for filing the return (without regard to any 
     extensions).

     SEC. _04. CORPORATIONS PERMITTED STATUTORY AUTOMATIC 6-MONTH 
                   EXTENSION OF INCOME TAX RETURNS.

       (a) In General.--Section 6081(b) is amended by striking ``3 
     months'' and inserting ``6 months''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to returns for taxable years beginning after 
     December 31, 2013.
                                 ______
                                 
  SA 3163. Mr. GRASSLEY (for himself and Mr. Roberts) submitted an 
amendment intended to be proposed by him to the bill H.R. 3474, to 
amend the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the end, add the following:

                       TITLE _--OTHER PROVISIONS

     SEC. _01. EXPANSION OF DECLARATORY JUDGMENT REMEDY TO TAX-
                   EXEMPT ORGANIZATIONS.

       (a) In General.--Paragraph (1) of section 7428(a) is 
     amended--
       (1) in subparagraph (B) by inserting after ``509(a))'' the 
     following: ``or as a private operating foundation (as defined 
     in section 4942(j)(3))''; and
       (2) by amending subparagraph (C) to read as follows:
       ``(C) with respect to the initial qualification or 
     continuing qualification of an organization as an 
     organization described in section 501(c) (other than 
     paragraph (3)) or 501(d) which is exempt from tax under 
     section 501(a), or''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to pleadings filed with respect to determinations 
     (or requests for determinations) made after December 31, 
     2014.
                                 ______
                                 
  SA 3164. Mr. JOHANNS submitted an amendment intended to be proposed 
to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to 
amend the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       On page 46, strike line 10 and all that follows through 
     line 18.
                                 ______
                                 
  SA 3165. Mr. HATCH (for himself, Mr. Alexander, Mr. Enzi, Ms. 
Collins, Mr. Cochran, and Mr. Crapo) submitted an amendment intended to 
be proposed by him to the bill H.R. 3474, to amend the Internal Revenue 
Code of 1986 to allow employers to exempt employees with health 
coverage under TRICARE or the Veterans Administration from being taken 
into account for purposes of the employer mandate under the Patient 
Protection and Affordable Care Act; which was ordered to lie on the 
table; as follows:

       At the end, add the following:

                  TITLE _--REPEAL OF EMPLOYEE MANDATE

     SEC. _ PROTECT JOB CREATION.

       Sections 1513 and 1514 and subsections (e), (f), and (g) of 
     section 10106 of the Patient Protection and Affordable Act 
     (and the amendments made by such sections and subsections) 
     are repealed and the Internal Revenue Code of 1986 shall be 
     applied and administered as if such provisions and amendments 
     had never been acted.
                                 ______
                                 
  SA 3166. Mr. HATCH (for himself, Mr. Alexander, Mr. Coats, Mr. Thune, 
Ms. Ayotte, Mr. McConnell, Mr. Enzi, Ms. Collins, Mr. Cochran, and Mr. 
Crapo) submitted an amendment intended to be proposed by him to the 
bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow 
employers to exempt employees with health coverage under TRICARE or the 
Veterans Administration from being taken into account for purposes of 
the employer mandate under the Patient Protection and Affordable Care 
Act; which was ordered to lie on the table; as follows:

       At the end, add the following:

               TITLE _--ELIMINATION OF INDIVIDUAL MANDATE

     SEC. _01. RESTORING INDIVIDUAL LIBERTY.

       Sections 1501 and 1502 and subsections (a), (b), (c), and 
     (d) of section 10106 of the Patient Protection and Affordable 
     Care Act (and the amendments made by such sections and 
     subsections) are repealed and the Internal Revenue Code of 
     1986 shall be applied and administered as if such provisions 
     and amendments had never been enacted.
                                 ______
                                 
  SA 3167. Mr. TOOMEY (for himself, Mr. Casey, Mr. Crapo, and Mr. 
Carper) submitted an amendment intended to be proposed by him to the 
bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow 
employers to exempt employees with health coverage under TRICARE or the 
Veterans Administration from being taken into account for purposes of 
the employer mandate under the Patient Protection and Affordable Care 
Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                       TITLE __--OTHER PROVISIONS

     SEC. _01. CLARIFICATION OF ORPHAN DRUG EXCEPTION TO ANNUAL 
                   FEE ON BRANDED PRESCRIPTION PHARMACEUTICAL 
                   MANUFACTURERS AND EMPLOYERS.

       (a) In General.--Paragraph (3) of section 9008(e) of the 
     Patient Protection and Affordable Care Act (Public Law 111-
     148) is amended to read as follows:
       ``(3) Exclusion of orphan drug sales.--
       ``(A) In general.--The term `branded prescription drug 
     sales' shall not include sales of any drug or biological 
     product--
       ``(i) with respect to which a credit was allowed for any 
     taxable year under section 45C of the Internal Revenue Code 
     of 1986; or
       ``(ii) which is approved or licensed by the Food and Drug 
     Administration for marketing solely for 1 or more rare 
     diseases or conditions.
       ``(B) Limitation.--Subparagraph (A) shall not apply with 
     respect to any drug or biological product after the date on 
     which the drug or biological product is approved or licensed 
     by the Food and Drug Administration for marketing for any 
     indication other than the treatment of a rare disease or 
     condition.
       ``(C) Rare disease or condition.--For purposes of this 
     paragraph, the term `rare disease or condition' has the 
     meaning given such term under section 45C(d)(1) of the 
     Internal Revenue Code of 1986, except that in the case of any 
     drug or biological product that has not been designated under 
     section 526 of the Federal Food, Drug, and Cosmetic Act for a 
     particular indication, determinations under such section 
     45C(d)(1) shall be made on the basis of the facts and 
     circumstances as of the date such drug or biological product 
     is approved or licensed by the Food and Drug Administration 
     for marketing for the treatment of such disease or 
     condition.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to branded prescription drug sales after the date 
     of the enactment of this Act.
                                 ______
                                 
  SA 3168. Mr. ENZI submitted an amendment intended to be proposed to 
amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend 
the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       After section 157, insert the following:

     SEC. 158. ADDITIONAL TAX CREDITS FOR QUALIFYING SUPERCRITICAL 
                   ADVANCED COAL PROJECTS.

       (a) 30 Percent Credit Percentage.--Paragraph (3) of section 
     48A(a) is amended by inserting ``or (iv)'' after ``(iii)''.
       (b) Supercritical Advanced Coal-Based Generation Technology 
     Project Defined.--Subsection (c) of section 48A is amended by 
     adding at the end the following:

[[Page 8370]]

       ``(8) The term `supercritical advanced coal-based 
     generation technology project' means a qualifying advanced 
     coal-based generation technology project which includes a 
     coal-fired boiler that--
       ``(A) in lieu of the requirements under subsection 
     (f)(1)(A)(ii), reaches an electricity generating efficiency 
     of at least 36 percent, and
       ``(B) operates at a minimum pressure of 3,200 pounds per 
     square inch.''.
       (c) Application Period for Certification.--Subparagraph (A) 
     of section 48A(d)(2) is amended by striking ``and'' at the 
     end of clause (i), by striking the period at the end of 
     clause (ii) and inserting ``, and'', and by adding at the end 
     the following:
       ``(iii) for an allocation from the dollar amount specified 
     in paragraph (3)(B)(iv) during the 3-year period beginning at 
     earlier of the termination of the period described in clause 
     (ii) or the date prescribed by the Secretary.''.
       (d) Aggregate Credits.--
       (1) In general.--Subparagraph (A) of section 48A(d)(3) is 
     amended by striking ``$2,550,000,000'' and inserting 
     ``$3,800,000,000''.
       (2) Supercritical advanced coal-based generation technology 
     projects.--Subparagraph (B) of section 48A(d)(3)(B) is 
     amended by striking ``and'' at the end of clause (ii), by 
     striking the period at the end of clause (iii) and inserting 
     ``, and'', and by adding at the end the following:
       ``(iv) $1,250,000,000 for supercritical advanced coal-based 
     generation technology projects the application for which is 
     submitted during the period described in paragraph 
     (2)(A)(iii).''.
       (e) Carbon Dioxide Sequester.--Subparagraph (G) of section 
     48A(e)(1) is amended by striking ``subsection (d)(2)(A)(ii)'' 
     and inserting ``clause (ii) or (iii) of subsection 
     (d)(2)(A)''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to periods after the date of the enactment of 
     this Act under rules similar to the rules of section 48(m) of 
     the Internal Revenue Code of 1986 (as in effect on the day 
     before the date of the enactment of the Revenue 
     Reconciliation Act of 1990).
                                 ______
                                 
  SA 3169. Mr. ENZI (for himself, Mr. Durbin, Mr. Alexander, Ms. 
Heitkamp, Mr. Rockefeller, Mr. King, Mr. Cardin, Ms. Landrieu, Mr. 
Franken, Mr. Whitehouse, Mr. Reed, Mr. Manchin, Mr. Johnson of South 
Dakota, Mr. Blunt, Mr. Udall of Colorado, and Ms. Collins) submitted an 
amendment intended to be proposed by him to the bill H.R. 3474, to 
amend the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                     TITLE _--MARKETPLACE FAIRNESS

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``Marketplace Fairness Act 
     of 2013''.

     SEC. _02. AUTHORIZATION TO REQUIRE COLLECTION OF SALES AND 
                   USE TAXES.

       (a) Streamlined Sales and Use Tax Agreement.--Each Member 
     State under the Streamlined Sales and Use Tax Agreement is 
     authorized to require all sellers not qualifying for the 
     small seller exception described in subsection (c) to collect 
     and remit sales and use taxes with respect to remote sales 
     sourced to that Member State pursuant to the provisions of 
     the Streamlined Sales and Use Tax Agreement, but only if any 
     changes to the Streamlined Sales and Use Tax Agreement made 
     after the date of the enactment of this Act are not in 
     conflict with the minimum simplification requirements in 
     subsection (b)(2). A State may exercise authority under this 
     title beginning 180 days after the State publishes notice of 
     the State's intent to exercise the authority under this 
     title, but no earlier than the first day of the calendar 
     quarter that is at least 180 days after the date of the 
     enactment of this Act.
       (b) Alternative.--A State that is not a Member State under 
     the Streamlined Sales and Use Tax Agreement is authorized 
     notwithstanding any other provision of law to require all 
     sellers not qualifying for the small seller exception 
     described in subsection (c) to collect and remit sales and 
     use taxes with respect to remote sales sourced to that State, 
     but only if the State adopts and implements the minimum 
     simplification requirements in paragraph (2). Such authority 
     shall commence beginning no earlier than the first day of the 
     calendar quarter that is at least 6 months after the date 
     that the State--
       (1) enacts legislation to exercise the authority granted by 
     this title--
       (A) specifying the tax or taxes to which such authority and 
     the minimum simplification requirements in paragraph (2) 
     shall apply; and
       (B) specifying the products and services otherwise subject 
     to the tax or taxes identified by the State under 
     subparagraph (A) to which the authority of this title shall 
     not apply; and
       (2) implements each of the following minimum simplification 
     requirements:
       (A) Provide--
       (i) a single entity within the State responsible for all 
     State and local sales and use tax administration, return 
     processing, and audits for remote sales sourced to the State;
       (ii) a single audit of a remote seller for all State and 
     local taxing jurisdictions within that State; and
       (iii) a single sales and use tax return to be used by 
     remote sellers to be filed with the single entity responsible 
     for tax administration.

     A State may not require a remote seller to file sales and use 
     tax returns any more frequently than returns are required for 
     nonremote sellers or impose requirements on remote sellers 
     that the State does not impose on nonremote sellers with 
     respect to the collection of sales and use taxes under this 
     title. No local jurisdiction may require a remote seller to 
     submit a sales and use tax return or to collect sales and use 
     taxes other than as provided by this paragraph.
       (B) Provide a uniform sales and use tax base among the 
     State and the local taxing jurisdictions within the State 
     pursuant to paragraph (1).
       (C) Source all remote sales in compliance with the sourcing 
     definition set forth in section _04(7).
       (D) Provide--
       (i) information indicating the taxability of products and 
     services along with any product and service exemptions from 
     sales and use tax in the State and a rates and boundary 
     database;
       (ii) software free of charge for remote sellers that 
     calculates sales and use taxes due on each transaction at the 
     time the transaction is completed, that files sales and use 
     tax returns, and that is updated to reflect rate changes as 
     described in subparagraph (H); and
       (iii) certification procedures for persons to be approved 
     as certified software providers.

     For purposes of clause (iii), the software provided by 
     certified software providers shall be capable of calculating 
     and filing sales and use taxes in all States qualified under 
     this title.
       (E) Relieve remote sellers from liability to the State or 
     locality for the incorrect collection, remittance, or 
     noncollection of sales and use taxes, including any penalties 
     or interest, if the liability is the result of an error or 
     omission made by a certified software provider.
       (F) Relieve certified software providers from liability to 
     the State or locality for the incorrect collection, 
     remittance, or noncollection of sales and use taxes, 
     including any penalties or interest, if the liability is the 
     result of misleading or inaccurate information provided by a 
     remote seller.
       (G) Relieve remote sellers and certified software providers 
     from liability to the State or locality for incorrect 
     collection, remittance, or noncollection of sales and use 
     taxes, including any penalties or interest, if the liability 
     is the result of incorrect information or software provided 
     by the State.
       (H) Provide remote sellers and certified software providers 
     with 90 days notice of a rate change by the State or any 
     locality in the State and update the information described in 
     subparagraph (D)(i) accordingly and relieve any remote seller 
     or certified software provider from liability for collecting 
     sales and use taxes at the immediately preceding effective 
     rate during the 90-day notice period if the required notice 
     is not provided.
       (c) Small Seller Exception.--A State is authorized to 
     require a remote seller to collect sales and use taxes under 
     this title only if the remote seller has gross annual 
     receipts in total remote sales in the United States in the 
     preceding calendar year exceeding $1,000,000. For purposes of 
     determining whether the threshold in this section is met, the 
     gross annual receipts from remote sales of 2 or more persons 
     shall be aggregated if--
       (1) such persons are related to the remote seller within 
     the meaning of subsections (b) and (c) of section 267 or 
     section 707(b)(1) of the Internal Revenue Code of 1986; or
       (2) such persons have 1 or more ownership relationships and 
     such relationships were designed with a principal purpose of 
     avoiding the application of these rules.

     SEC. _03. LIMITATIONS.

       (a) In General.--Nothing in this title shall be construed 
     as--
       (1) subjecting a seller or any other person to franchise, 
     income, occupation, or any other type of taxes, other than 
     sales and use taxes;
       (2) affecting the application of such taxes; or
       (3) enlarging or reducing State authority to impose such 
     taxes.
       (b) No Effect on Nexus.--This title shall not be construed 
     to create any nexus or alter the standards for determining 
     nexus between a person and a State or locality.
       (c) No Effect on Seller Choice.--Nothing in this title 
     shall be construed to deny the ability of a remote seller to 
     deploy and utilize a certified software provider of the 
     seller's choice.

[[Page 8371]]

       (d) Licensing and Regulatory Requirements.--Nothing in this 
     title shall be construed as permitting or prohibiting a State 
     from--
       (1) licensing or regulating any person;
       (2) requiring any person to qualify to transact intrastate 
     business;
       (3) subjecting any person to State or local taxes not 
     related to the sale of products or services; or
       (4) exercising authority over matters of interstate 
     commerce.
       (e) No New Taxes.--Nothing in this title shall be construed 
     as encouraging a State to impose sales and use taxes on any 
     products or services not subject to taxation prior to the 
     date of the enactment of this Act.
       (f) No Effect on Intrastate Sales.--The provisions of this 
     title shall apply only to remote sales and shall not apply to 
     intrastate sales or intrastate sourcing rules. States granted 
     authority under section _02(a) shall comply with all 
     intrastate provisions of the Streamlined Sales and Use Tax 
     Agreement.
       (g) No Effect on Mobile Telecommunications Sourcing Act.--
     Nothing in this title shall be construed as altering in any 
     manner or preempting the Mobile Telecommunications Sourcing 
     Act (4 U.S.C. 116-126).

     SEC. _04. DEFINITIONS AND SPECIAL RULES.

       In this title:
       (1) Certified software provider.--The term ``certified 
     software provider'' means a person that--
       (A) provides software to remote sellers to facilitate State 
     and local sales and use tax compliance pursuant to section 
     _02(b)(2)(D)(ii); and
       (B) is certified by a State to so provide such software.
       (2) Locality; local.--The terms ``locality'' and ``local'' 
     refer to any political subdivision of a State.
       (3) Member state.--The term ``Member State''--
       (A) means a Member State as that term is used under the 
     Streamlined Sales and Use Tax Agreement as in effect on the 
     date of the enactment of this Act; and
       (B) does not include any associate member under the 
     Streamlined Sales and Use Tax Agreement.
       (4) Person.--The term ``person'' means an individual, 
     trust, estate, fiduciary, partnership, corporation, limited 
     liability company, or other legal entity, and a State or 
     local government.
       (5) Remote sale.--The term ``remote sale'' means a sale 
     into a State, as determined under the sourcing rules under 
     paragraph (7), in which the seller would not legally be 
     required to pay, collect, or remit State or local sales and 
     use taxes unless provided by this title.
       (6) Remote seller.--The term ``remote seller'' means a 
     person that makes remote sales in the State.
       (7) Sourced.--For purposes of a State granted authority 
     under section _02(b), the location to which a remote sale is 
     sourced refers to the location where the product or service 
     sold is received by the purchaser, based on the location 
     indicated by instructions for delivery that the purchaser 
     furnishes to the seller. When no delivery location is 
     specified, the remote sale is sourced to the customer's 
     address that is either known to the seller or, if not known, 
     obtained by the seller during the consummation of the 
     transaction, including the address of the customer's payment 
     instrument if no other address is available. If an address is 
     unknown and a billing address cannot be obtained, the remote 
     sale is sourced to the address of the seller from which the 
     remote sale was made. A State granted authority under section 
     _02(a) shall comply with the sourcing provisions of the 
     Streamlined Sales and Use Tax Agreement.
       (8) State.--The term ``State'' means each of the several 
     States, the District of Columbia, the Commonwealth of Puerto 
     Rico, Guam, American Samoa, the United States Virgin Islands, 
     the Commonwealth of the Northern Mariana Islands, and any 
     other territory or possession of the United States, and any 
     tribal organization (as defined in section 4 of the Indian 
     Self-Determination and Education Assistance Act (25 U.S.C. 
     450b)).
       (9) Streamlined sales and use tax agreement.--The term 
     ``Streamlined Sales and Use Tax Agreement'' means the multi-
     State agreement with that title adopted on November 12, 2002, 
     as in effect on the date of the enactment of this Act and as 
     further amended from time to time.

     SEC. _05. SEVERABILITY.

       If any provision of this title or the application of such 
     provision to any person or circumstance is held to be 
     unconstitutional, the remainder of this title and the 
     application of the provisions of such to any person or 
     circumstance shall not be affected thereby.

     SEC. _06. PREEMPTION.

       Except as otherwise provided in this title, this title 
     shall not be construed to preempt or limit any power 
     exercised or to be exercised by a State or local jurisdiction 
     under the law of such State or local jurisdiction or under 
     any other Federal law.
                                 ______
                                 
  SA 3170. Mr. TOOMEY (for himself, Mr. Lee, and Mr. Flake) submitted 
an amendment intended to be proposed to amendment SA 3060 proposed by 
Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 
1986 to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       Beginning on page 47, strike line 10 and all that follows 
     through page 53, line 3.
       Beginning on page 56, strike line 4 and all that follows 
     through page 59, line 4.
       Beginning on page 59, strike line 7 and all that follows 
     through page 60, line 2.
                                 ______
                                 
  SA 3171. Mr. TOOMEY submitted an amendment intended to be proposed to 
amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend 
the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       On page 23, strike line 5 and all that follows through line 
     21 and insert the following:
       (a) Permanent Extension.--Section 45P is amended by 
     striking subsection (f).
       (b) Expansion of Credit.--
       (1) Expansion to 100 percent of eligible differential wage 
     payments.--Subsection (a) of section 45P is amended by 
     striking ``20 percent of''.
       (2) Adjustment for inflation.--Subsection (b) of section 
     45P is amended by adding at the end the following new 
     paragraph:
       ``(4) Adjustment for inflation.--In the case of any taxable 
     year beginning after 2014, the $20,000 amount in paragraph 
     (1) 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, by substituting `calendar year 2013' for 
     `calendar year 1992' in subparagraph (B) thereof.

     If the amount as increased under the preceding sentence is 
     not a multiple of $100, such amount shall be rounded to the 
     nearest multiple of $100.''.
       (3) Applicability to all employers.--
       (A) In general.--Subsection (a) of section 45P, as amended 
     by paragraph (1), is amended by striking ``eligible small 
     business employer'' and inserting ``eligible employer''.
       (B) Conforming amendments.--Paragraph (3) of section 45P(b) 
     is amended--
       (i) in subparagraph (A)--

       (I) by striking ``eligible small business employer'' and 
     inserting ``eligible employer'', and
       (II) by striking ``any employer which'' and all that 
     follows and inserting ``any employer which, under a written 
     plan of the employer, provides eligible differential wage 
     payments to every qualified employee of the employer.'', and

       (ii) by striking ``Eligible small business employer'' in 
     the heading and inserting ``Eligible employer''.
                                 ______
                                 
  SA 3172. Mr. TOOMEY submitted an amendment intended to be proposed by 
him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                       TITLE __--OTHER PROVISIONS

     SEC. _01. PROHIBITION ON USE OF WAIVER THREATENING BALD 
                   EAGLES.

       (a) In General.--Subsection (e) of section 45 is amended by 
     adding at the end the following new paragraph:
       ``(12) Protection of bald eagles.--
       ``(A) In general.--Sales shall be taken into account under 
     this section only with respect to electricity produced by a 
     taxpayer who does not have in effect a waiver granted by the 
     Federal government or any agency or instrumentality thereof 
     from any Federal law or provision thereof protecting the 
     life, well-being, or habitat of the bald eagle.
       ``(B) Recapture of benefit.--In the case of any taxpayer--
       ``(i) who has in effect a waiver described in subparagraph 
     (A) as of the date of the enactment of this paragraph, and
       ``(ii) who has claimed the credit under section 38 by 
     reason of this section for any preceding taxable year,

     the tax imposed under subtitle A on the taxpayer for the 
     taxable year that includes such date of enactment shall be 
     increased by so much of such credit as was allowed under 
     section 38, and the general business

[[Page 8372]]

     carryforwards under section 39 shall be adjusted so as to 
     recapture the portion of such credit which is equal to such 
     amount.
       ``(C) Renunciation of waiver.--Any taxpayer to whom 
     subparagraph (B) would otherwise apply (but for the second 
     sentence of this subparagraph) may elect to renounce in 
     writing the waiver described in subparagraph (A). If such 
     renunciation is made to the Secretary and to the appropriate 
     Federal officer of the agency that issued such waiver not 
     later than 12 months after the date of the enactment of this 
     paragraph, such taxpayer shall be exempt from the increase in 
     tax under subparagraph (B).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to electricity produced and sold after the date 
     of the enactment of this Act.
                                 ______
                                 
  SA 3173. Mr. ROBERTS submitted an amendment intended to be proposed 
by him to the bill H.R. 3474, to amend the Internal Revenue Code of 
1986 to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                       TITLE __--OTHER PROVISIONS

     SEC. _01. REPEAL OF DISTRIBUTIONS FOR MEDICINE QUALIFIED ONLY 
                   IF FOR PRESCRIBED DRUG OR INSULIN.

       Section 9003 of the Patient Protection and Affordable Care 
     Act (Public Law 111-148) and the amendments made by such 
     section are repealed, and the Internal Revenue Code of 1986 
     shall be applied as if such section, and amendments, had 
     never been enacted.
                                 ______
                                 
  SA 3174. Mr. TOOMEY (for himself, Mr. Burr, Mr. Cornyn, Mr. Crapo, 
Mr. Coats, Ms. Ayotte, Mr. McConnell, Mr. Alexander, Mr. Roberts, Mr. 
Isakson, Ms. Collins, Mr. Enzi, and Mr. Hatch) submitted an amendment 
intended to be proposed by him to the bill H.R. 3474, to amend the 
Internal Revenue Code of 1986 to allow employers to exempt employees 
with health coverage under TRICARE or the Veterans Administration from 
being taken into account for purposes of the employer mandate under the 
Patient Protection and Affordable Care Act; which was ordered to lie on 
the table; as follows:

       At the appropriate place, insert the following:

                       TITLE __--OTHER PROVISIONS

     SEC. ___. REPEAL OF MEDICAL DEVICE TAX.

       (a) In General.--Chapter 32 is amended by striking 
     subchapter E.
       (b) Conforming Amendments.--
       (1) Subsection (a) of section 4221 is amended by striking 
     the last sentence.
       (2) Paragraph (2) of section 6416(b) is amended by striking 
     the last sentence.
       (c) Clerical Amendment.--The table of subchapters for 
     chapter 32 is amended by striking the item related to 
     subchapter E.
       (d) Effective Date.--The amendments made by this section 
     shall apply to sales after the date of the enactment of this 
     Act.
                                 ______
                                 
  SA 3175. Mr. MENENDEZ submitted an amendment intended to be proposed 
by him to the bill H.R. 3474, to amend the Internal Revenue Code of 
1986 to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       On page _, between lines _ and _, insert the following:
       (c) Special Rule for Certain Facilities.--Section 45(e) is 
     amended by adding at the end the following new paragraph:
       ``(12) Special rule for certain qualified facilities.--
       ``(A) In general.--In the case of a qualified facility 
     described in paragraph (3) or (7) of subsection (d) and 
     placed in service before the date of the enactment of this 
     paragraph, subsection (a)(2)(A)(ii) shall be applied by 
     substituting `the period beginning after December 31, 2013, 
     and ending before January 1, 2016' for `the 10-year period 
     beginning on the date the facility was originally placed in 
     service'.
       ``(B) Limitation.--No credit shall be allowed under 
     subsection (a) by reason of subparagraph (A) with respect to 
     electricity produced and sold at a facility during any period 
     which, when aggregated with all other periods for which a 
     credit is allowed under this section with respect to 
     electricity produced and sold at such facility, is in excess 
     of 10 years.''.
                                 ______
                                 
  SA 3176. Mr. KIRK submitted an amendment intended to be proposed by 
him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. SHIFT IN THE COLLECTION OF THE PAYMENT FOR THE 
                   TRANSITIONAL REINSURANCE PROGRAM.

       (a) In General.--Section 1341(b) of the Patient Protection 
     and Affordable Care Act (42 U.S.C. 18061(b)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (A)--
       (i) by inserting ``beginning on January 1, 2018,'' after 
     ``required to make payments''; and
       (ii) by striking ``any plan year beginning in the 3-year 
     period'' and all that follows through the end and inserting 
     ``payments made under subparagraph (C) (as specified in 
     paragraph (3));''
       (B) in subparagraph (B), by striking ``and uses'' and all 
     that follows through the period and inserting ``; and''' and
       (C) by adding at the end the following:
       ``(C) the applicable reinsurance entity makes reinsurance 
     payments to health insurance issuers described in 
     subparagraph (A) that cover high risk individuals in the 
     individual market (excluding grandfathered health plans) for 
     any plan year beginning in the 3-year period beginning 
     January 1, 2014, in an aggregate amount of up to the total of 
     the aggregate contribution amounts described in paragraph 
     (3)(B)(iv), subject to paragraph (4).'';
       (2) in paragraph (2), by striking ``paragraph (1)(B)'' and 
     inserting ``paragraph (1)(C)'';
       (3) in paragraph (3)--
       (A) in subparagraph (A), by striking ``2014'' and inserting 
     ``2018''; and
       (B) in subparagraph (B)--
       (i) in clause (ii), by striking ``administrative'' and 
     inserting ``operational'';
       (ii) by redesignating clauses (iii) and (iv) as clauses 
     (iv) and (v), respectively;
       (iii) by inserting after clause (ii), the following:
       ``(iii) the aggregate contribution amount for all States 
     shall be based on the total amount of reinsurance payments 
     made under paragraph (1)(C);'';
       (iv) by striking clause (iv), as so redesignated, and 
     inserting the following:
       ``(iv) the aggregate contribution amount collected under 
     clause (iii) shall, without regard to amounts described in 
     clause (ii), be limited to $10,000,000,000 based on the plan 
     years beginning in 2014, $6,000,000,000 based on the plan 
     years beginning in 2015, and $4,000,000,000 based on the plan 
     years beginning in 2016;'';
       (v) in clause (v), as so redesignated, by striking ``clause 
     (iii)'' each place that such term appears and inserting 
     ``clause (iv)'';
       (vi) by inserting after clause (v), the following:
       ``(vi) in addition to the contribution amounts under 
     clauses (iii), (iv), and (v), each issuer's contribution 
     amount--

       ``(I) shall reflect its proportionate share of an 
     additional $20,300,000 for operational expenses for 
     reinsurance payments for calendar year 2014 and for 
     reinsurance collections for calendar year 2018;
       ``(II) shall reflect its proportionate share of operational 
     expenses for reinsurance payments for calendar year 2015 and 
     for reinsurance collections for calendar year 2019; and
       ``(III) shall reflect its proportionate share of 
     operational expenses for reinsurance payments for calendar 
     year 2016 and for reinsurance collections for calendar year 
     2020; and

       ``(vii) collection of the contribution amounts provided for 
     in clauses (ii) through (vi) shall be initiated--

       ``(I) for calendar year 2014, not earlier than January 1, 
     2018;
       ``(II) for calendar year 2015, not earlier than January 1, 
     2019; and
       ``(III) for calendar year 2016, not earlier than January 1, 
     2020.'';

       (4) in paragraph (4)--
       (A) in subparagraph (A)--
       (i) by striking ``contribution amounts collected for any 
     calendar year'' and inserting ``amount provided under 
     paragraph (5) for reinsurance payments described in paragraph 
     (1)(C)''; and
       (ii) by striking ``; and'' and inserting a period;
       (B) by striking subparagraph (B);
       (C) by striking ``that--'' and all that follows through 
     ``the contribution'' in subparagraph (A) and inserting ``that 
     the contribution''; and
       (D) in the flush matter at the end, by striking ``paragraph 
     (3)(B)(iv)'' and inserting the following: ``paragraph 
     (3)(B)(v) and any amounts collected under clauses (ii) of 
     paragraph (3)(B) that, when combined with the funding 
     provided for under paragraph (5), exceed the aggregate amount 
     permitted for making the reinsurance payments described in 
     paragraph (1)(C) and to fund the operational expenses of 
     applicable reinsurance entities,''; and

[[Page 8373]]

       (5) by adding at the end the following:
       ``(5) Funding.--To carry out this section, there is 
     appropriated, out of any money in the Treasury not otherwise 
     appropriated, an amount equal to the aggregate amount to be 
     collected for plan years beginning in 2014 set forth in 
     paragraph (3)(B)(iv) for reinsurance payments described in 
     paragraph (1)(C), and an amount equal to the contribution 
     amounts set forth in paragraph (3)(B)(vi) to fund operational 
     expenses of applicable reinsurance entities.''.
       (b) Rule of Construction.--Nothing in the amendments made 
     by this section shall be construed to increase the amount of 
     payments to be collected under subsection (b)(1)(A) or to 
     decrease the amount of the reinsurance payments to be made 
     under subsection (b)(1)(C) of section 1341 of the Patient 
     Protection and Affordable Care Act (42 U.S.C. 18061).
       (c) Medical Loss Ratio.--The Secretary of Health and Human 
     Services shall promulgate regulations or guidance to ensure 
     that health insurance issuers reflect changes made in section 
     1341 of the Patient Protection and Affordable Care Act with 
     section 2718 of the Public Health Service Act (42 U.S.C.1 
     300gg-18) and sections 1342 and 1312(c) of the Patient 
     Protection and Affordable Care Act (42 U.S.C. 18063 and 
     18032(c)).
                                 ______
                                 
  SA 3177. Mr. CARDIN (for himself, Mr. Roberts, Mr. Thune, Mr. Moran, 
Mr. Whitehouse, Mr. Crapo, Mr. Blunt, Ms. Collins, Mr. Leahy, Ms. 
Landrieu, Mr. Franken, Mr. Sanders, Ms. Stabenow, Mr. Brown, and Mr. 
Johnson of South Dakota) submitted an amendment intended to be proposed 
by him to the bill H.R. 3474, to amend the Internal Revenue Code of 
1986 to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

TITLE __--PROMOTION AND EXPANSION OF PRIVATE EMPLOYEE OWNERSHIP ACT OF 
                                  2014

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``Promotion and Expansion of 
     Private Employee Ownership Act of 2014''.

     SEC. _02. FINDINGS.

       Congress finds that--
       (1) on January 1, 1998--nearly 25 years after the Employee 
     Retirement Income Security Act of 1974 was enacted and the 
     employee stock ownership plan (hereafter in this section 
     referred to as an ``ESOP'') was created--employees were first 
     permitted to be owners of subchapter S corporations pursuant 
     to the Small Business Job Protection Act of 1996 (Public Law 
     104-188);
       (2) with the passage of the Taxpayer Relief Act of 1997 
     (Public Law 105-34), Congress designed incentives to 
     encourage businesses to become ESOP-owned S corporations;
       (3) since that time, several thousand companies have become 
     ESOP-owned S corporations, creating an ownership interest for 
     several million Americans in companies in every State in the 
     country, in industries ranging from heavy manufacturing to 
     technology development to services;
       (4) while estimates show that 40 percent of working 
     Americans have no formal retirement account at all, every 
     United States worker who is an employee-owner of an S 
     corporation company through an ESOP has a valuable qualified 
     retirement savings account;
       (5) recent studies have shown that employees of ESOP-owned 
     S corporations enjoy greater job stability than employees of 
     comparable companies;
       (6) studies also show that employee-owners of S corporation 
     ESOP companies have amassed meaningful retirement savings 
     through their S ESOP accounts that will give them the means 
     to retire with dignity;
       (7) under the Small Business Act (15 U.S.C. 631 et seq.) 
     and the regulations promulgated by the Administrator of the 
     Small Business Administration, a small business concern that 
     was eligible under the Small Business Act for the numerous 
     preferences of the Act is denied treatment as a small 
     business concern after an ESOP acquires more than 49 percent 
     of the business, even if the number of employees, the revenue 
     of the small business concern, and the racial, gender, or 
     other criteria used under the Act to determine whether the 
     small business concern is eligible for benefits under the Act 
     remain the same, solely because of the acquisition by the 
     ESOP; and
       (8) it is the goal of Congress to both preserve and foster 
     employee ownership of S corporations through ESOPs.

     SEC. _03. DEFERRAL OF TAX FOR CERTAIN SALES OF EMPLOYER STOCK 
                   TO EMPLOYEE STOCK OWNERSHIP PLAN SPONSORED BY S 
                   CORPORATION.

       (a) In General.--Subparagraph (A) of section 1042(c)(1) of 
     the Internal Revenue Code of 1986 (defining qualified 
     securities) is amended by striking ``domestic C corporation'' 
     and inserting ``domestic corporation''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to sales after the date of the enactment of this 
     Act.

     SEC. _04. DEPARTMENT OF TREASURY TECHNICAL ASSISTANCE OFFICE.

       (a) Establishment Required.--Before the end of the 90-day 
     period beginning on the date of enactment of this Act, the 
     Secretary of Treasury shall establish the S Corporation 
     Employee Ownership Assistance Office to foster increased 
     employee ownership of S corporations.
       (b) Duties of the Office.--The S Corporation Employee 
     Ownership Assistance Office shall provide--
       (1) education and outreach to inform companies and 
     individuals about the possibilities and benefits of employee 
     ownership of S corporations; and
       (2) technical assistance to assist S corporations in 
     sponsoring employee stock ownership plans.

     SEC. _05. SMALL BUSINESS AND EMPLOYEE STOCK OWNERSHIP.

       (a) In General.--The Small Business Act (15 U.S.C. 631 et 
     seq.) is amended--
       (1) by redesignating section 47 as section 48; and
       (2) by inserting after section 46 the following:

     ``SEC. 47. EMPLOYEE STOCK OWNERSHIP PLANS.

       ``(a) Definitions.--In this section--
       ``(1) the term `ESOP' means an employee stock ownership 
     plan, as defined in section 4975(e)(7) of the Internal 
     Revenue Code of 1986, as amended; and
       ``(2) the term `ESOP business concern' means a business 
     concern that was a small business concern eligible for a loan 
     or to participate in a contracting assistance or business 
     development program under this Act before the date on which 
     more than 49 percent of the business concern was acquired by 
     an ESOP.
       ``(b) Continued Eligibility.--In determining whether an 
     ESOP business concern qualifies as a small business concern 
     for purposes of a loan, preference, or other program under 
     this Act, each ESOP participant shall be treated as directly 
     owning his or her proportionate share of the stock in the 
     ESOP business concern owned by the ESOP.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on January 1 of the first calendar year 
     beginning after the date of the enactment of this Act.
                                 ______
                                 
  SA 3178. Ms. LANDRIEU submitted an amendment intended to be proposed 
to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to 
amend the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       On page 56, between lines 23 and 24, insert the following:
       (3) Inclusion of liquid derived from natural gas.--
     Subparagraph (E) of section 6426(d)(2) is amended to read as 
     follows:
       ``(E) any liquid fuel--
       ``(i) which meets the requirements of paragraph (4) and 
     which is derived from coal (including peat) through the 
     Fischer-Tropsch process, or
       ``(ii) which is derived from natural gas through such 
     process,''.
                                 ______
                                 
  SA 3179. Mr. GRASSLEY (for himself and Mr. Nelson) submitted an 
amendment intended to be proposed to amendment SA 3060 proposed by Mr. 
Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the end, add the following:

         TITLE _--CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS

     SEC. _01. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.

       (a) Employment Taxes.--Chapter 25 is amended by adding at 
     the end the following new section:

     ``SEC. 3511. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.

       ``(a) General Rules.--For purposes of the taxes, and other 
     obligations, imposed by this subtitle--
       ``(1) a certified professional employer organization shall 
     be treated as the employer (and no other person shall be 
     treated as the employer) of any work site employee performing 
     services for any customer of such organization, but only with 
     respect to remuneration remitted by such organization to such 
     work site employee, and
       ``(2) exclusions, definitions, and other rules which are 
     based on the type of employer and

[[Page 8374]]

     which would (but for paragraph (1)) apply shall apply with 
     respect to such taxes imposed on such remuneration.
       ``(b) Successor Employer Status.--For purposes of sections 
     3121(a)(1), 3231(e)(2)(C), and 3306(b)(1)--
       ``(1) a certified professional employer organization 
     entering into a service contract with a customer with respect 
     to a work site employee shall be treated as a successor 
     employer and the customer shall be treated as a predecessor 
     employer during the term of such service contract, and
       ``(2) a customer whose service contract with a certified 
     professional employer organization is terminated with respect 
     to a work site employee shall be treated as a successor 
     employer and the certified professional employer organization 
     shall be treated as a predecessor employer.
       ``(c) Liability of Certified Professional Employer 
     Organization.--Solely for purposes of its liability for the 
     taxes, and other obligations, imposed by this subtitle--
       ``(1) a certified professional employer organization shall 
     be treated as the employer of any individual (other than a 
     work site employee or a person described in subsection (f)) 
     who is performing services covered by a contract meeting the 
     requirements of section 7705(e)(2), but only with respect to 
     remuneration remitted by such organization to such 
     individual, and
       ``(2) exclusions, definitions, and other rules which are 
     based on the type of employer and which would (but for 
     paragraph (1)) apply shall apply with respect to such taxes 
     imposed on such remuneration.
       ``(d) Treatment of Credits.--
       ``(1) In general.--For purposes of any credit specified in 
     paragraph (2)--
       ``(A) such credit with respect to a work site employee 
     performing services for the customer applies to the customer, 
     not the certified professional employer organization,
       ``(B) the customer, and not the certified professional 
     employer organization, shall take into account wages and 
     employment taxes--
       ``(i) paid by the certified professional employer 
     organization with respect to the work site employee, and
       ``(ii) for which the certified professional employer 
     organization receives payment from the customer, and
       ``(C) the certified professional employer organization 
     shall furnish the customer with any information necessary for 
     the customer to claim such credit.
       ``(2) Credits specified.--A credit is specified in this 
     paragraph if such credit is allowed under--
       ``(A) section 41 (credit for increasing research activity),
       ``(B) section 45A (Indian employment credit),
       ``(C) section 45B (credit for portion of employer social 
     security taxes paid with respect to employee cash tips),
       ``(D) section 45C (clinical testing expenses for certain 
     drugs for rare diseases or conditions),
       ``(E) section 45R (employee health insurance expenses of 
     small employers),
       ``(F) section 51 (work opportunity credit),
       ``(G) section 1396 (empowerment zone employment credit),
       ``(H) 1400(d) (DC Zone employment credit),
       ``(I) Section 1400H (renewal community employment credit), 
     and
       ``(J) any other section as provided by the Secretary.
       ``(e) Special Rule for Related Party.--This section shall 
     not apply in the case of a customer which bears a 
     relationship to a certified professional employer 
     organization described in section 267(b) or 707(b). For 
     purposes of the preceding sentence, such sections shall be 
     applied by substituting `10 percent' for `50 percent'.
       ``(f) Special Rule for Certain Individuals.--For purposes 
     of the taxes imposed under this subtitle, an individual with 
     net earnings from self-employment derived from the customer's 
     trade or business is not a work site employee with respect to 
     remuneration paid by a certified professional employer 
     organization.
       ``(g) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this section.''.
       (b) Certified Professional Employer Organization Defined.--
     Chapter 79 is amended by adding at the end the following new 
     section:

     ``SEC. 7705. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS 
                   DEFINED.

       ``(a) In General.--For purposes of this title, the term 
     `certified professional employer organization' means a person 
     who has been certified by the Secretary for purposes of 
     section 3511 as meeting the requirements of subsection (b).
       ``(b) General Requirements.--A person meets the 
     requirements of this subsection if such person--
       ``(1) demonstrates that such person (and any owner, 
     officer, and such other persons as may be specified in 
     regulations) meets such requirements as the Secretary shall 
     establish with respect to tax status, background, experience, 
     business location, and annual financial audits,
       ``(2) computes its taxable income using an accrual method 
     of accounting unless the Secretary approves another method,
       ``(3) agrees that it will satisfy the bond and independent 
     financial review requirements of subsection (c) on an ongoing 
     basis,
       ``(4) agrees that it will satisfy such reporting 
     obligations as may be imposed by the Secretary,
       ``(5) agrees to verify on such periodic basis as the 
     Secretary may prescribe that it continues to meet the 
     requirements of this subsection, and
       ``(6) agrees to notify the Secretary in writing within such 
     time as the Secretary may prescribe of any change that 
     materially affects whether it continues to meet the 
     requirements of this subsection.
       ``(c) Bond and Independent Financial Review Requirements.--
       ``(1) In general.--An organization meets the requirements 
     of this paragraph if such organization--
       ``(A) meets the bond requirements of paragraph (2), and
       ``(B) meets the independent financial review requirements 
     of paragraph (3).
       ``(2) Bond.--
       ``(A) In general.--A certified professional employer 
     organization meets the requirements of this paragraph if the 
     organization has posted a bond for the payment of taxes under 
     subtitle C (in a form acceptable to the Secretary) in an 
     amount at least equal to the amount specified in subparagraph 
     (B).
       ``(B) Amount of bond.--For the period April 1 of any 
     calendar year through March 31 of the following calendar 
     year, the amount of the bond required is equal to the greater 
     of--
       ``(i) 5 percent of the organization's liability under 
     section 3511 for taxes imposed by subtitle C during the 
     preceding calendar year (but not to exceed $1,000,000), or
       ``(ii) $50,000.
       ``(3) Independent financial review requirements.--A 
     certified professional employer organization meets the 
     requirements of this paragraph if such organization--
       ``(A) has, as of the most recent review date, caused to be 
     prepared and provided to the Secretary (in such manner as the 
     Secretary may prescribe) an opinion of an independent 
     certified public accountant that the certified professional 
     employer organization's financial statements are presented 
     fairly in accordance with generally accepted accounting 
     principles, and
       ``(B) provides, not later than the last day of the second 
     month beginning after the end of each calendar quarter, to 
     the Secretary from an independent certified public accountant 
     an assertion regarding Federal employment tax payments and an 
     examination level attestation on such assertion.

     Such assertion shall state that the organization has withheld 
     and made deposits of all taxes imposed by chapters 21, 22, 
     and 24 of the Internal Revenue Code in accordance with 
     regulations imposed by the Secretary for such calendar 
     quarter and such examination level attestation shall state 
     that such assertion is fairly stated, in all material 
     respects.
       ``(4) Controlled group rules.--For purposes of the 
     requirements of paragraphs (2) and (3), all professional 
     employer organizations that are members of a controlled group 
     within the meaning of sections 414(b) and (c) shall be 
     treated as a single organization.
       ``(5) Failure to file assertion and attestation.--If the 
     certified professional employer organization fails to file 
     the assertion and attestation required by paragraph (3) with 
     respect to any calendar quarter, then the requirements of 
     paragraph (3) with respect to such failure shall be treated 
     as not satisfied for the period beginning on the due date for 
     such attestation.
       ``(6) Review date.--For purposes of paragraph (3)(A), the 
     review date shall be 6 months after the completion of the 
     organization's fiscal year.
       ``(d) Suspension and Revocation Authority.--The Secretary 
     may suspend or revoke a certification of any person under 
     subsection (b) for purposes of section 3511 if the Secretary 
     determines that such person is not satisfying the 
     representations or requirements of subsections (b) or (c), or 
     fails to satisfy applicable accounting, reporting, payment, 
     or deposit requirements.
       ``(e) Work Site Employee.--For purposes of this title--
       ``(1) In general.--The term `work site employee' means, 
     with respect to a certified professional employer 
     organization, an individual who--
       ``(A) performs services for a customer pursuant to a 
     contract which is between such customer and the certified 
     professional employer organization and which meets the 
     requirements of paragraph (2), and
       ``(B) performs services at a work site meeting the 
     requirements of paragraph (3).
       ``(2) Service contract requirements.--A contract meets the 
     requirements of this paragraph with respect to an individual 
     performing services for a customer if such contract is in 
     writing and provides that the certified professional employer 
     organization shall--
       ``(A) assume responsibility for payment of wages to such 
     individual, without regard to the receipt or adequacy of 
     payment from the customer for such services,
       ``(B) assume responsibility for reporting, withholding, and 
     paying any applicable taxes

[[Page 8375]]

     under subtitle C, with respect to such individual's wages, 
     without regard to the receipt or adequacy of payment from the 
     customer for such services,
       ``(C) assume responsibility for any employee benefits which 
     the service contract may require the organization to provide, 
     without regard to the receipt or adequacy of payment from the 
     customer for such services,
       ``(D) assume responsibility for hiring, firing, and 
     recruiting workers in addition to the customer's 
     responsibility for hiring, firing and recruiting workers,
       ``(E) maintain employee records relating to such 
     individual, and
       ``(F) agree to be treated as a certified professional 
     employer organization for purposes of section 3511 with 
     respect to such individual.
       ``(3) Work site coverage requirement.--The requirements of 
     this paragraph are met with respect to an individual if at 
     least 85 percent of the individuals performing services for 
     the customer at the work site where such individual performs 
     services are subject to 1 or more contracts with the 
     certified professional employer organization which meet the 
     requirements of paragraph (2) (but not taking into account 
     those individuals who are excluded employees within the 
     meaning of section 414(q)(5)).
       ``(f) Determination of Employment Status.--Except to the 
     extent necessary for purposes of section 3511, nothing in 
     this section shall be construed to affect the determination 
     of who is an employee or employer for purposes of this title.
       ``(g) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this section.''.
       (c) Conforming Amendments.--
       (1) Section 3302 is amended by adding at the end the 
     following new subsection:
       ``(h) Treatment of Certified Professional Employer 
     Organizations.--If a certified professional employer 
     organization (as defined in section 7705), or a customer of 
     such organization, makes a contribution to the State's 
     unemployment fund with respect to a work site employee, such 
     organization shall be eligible for the credits available 
     under this section with respect to such contribution.''.
       (2) Section 3303(a) is amended--
       (A) by striking the period at the end of paragraph (3) and 
     inserting ``; and'' and by inserting after paragraph (3) the 
     following new paragraph:
       ``(4) if the taxpayer is a certified professional employer 
     organization (as defined in section 7705) that is treated as 
     the employer under section 3511, such certified professional 
     employer organization is permitted to collect and remit, in 
     accordance with paragraphs (1), (2), and (3), contributions 
     during the taxable year to the State unemployment fund with 
     respect to a work site employee.'', and
       (B) in the last sentence--
       (i) by striking ``paragraphs (1), (2), and (3)'' and 
     inserting ``paragraphs (1), (2), (3), and (4)'', and
       (ii) by striking ``paragraph (1), (2), or (3)'' and 
     inserting ``paragraph (1), (2), (3), or (4)''.
       (3) Section 6053(c) is amended by adding at the end the 
     following new paragraph:
       ``(8) Certified professional employer organizations.--For 
     purposes of any report required by this subsection, in the 
     case of a certified professional employer organization that 
     is treated under section 3511 as the employer of a work site 
     employee, the customer with respect to whom a work site 
     employee performs services shall be the employer for purposes 
     of reporting under this section and the certified 
     professional employer organization shall furnish to the 
     customer any information necessary to complete such reporting 
     no later than such time as the Secretary shall prescribe.''.
       (d) Clerical Amendments.--
       (1) The table of sections for chapter 25 is amended by 
     adding at the end the following new item:

``Sec. 3511. Certified professional employer organizations.''.
       (2) The table of sections for chapter 79 is amended by 
     inserting after the item relating to section 7704 the 
     following new item:

``Sec. 7705. Certified professional employer organizations defined.''.
       (e) Reporting Requirements and Obligations.--The Secretary 
     of the Treasury shall develop such reporting and 
     recordkeeping rules, regulations, and procedures as the 
     Secretary determines necessary or appropriate to ensure 
     compliance with the amendments made by this section with 
     respect to entities applying for certification as certified 
     professional employer organizations or entities that have 
     been so certified. Such rules shall include--
       (1) notification of the Secretary in the case of the 
     commencement or termination of a service contract described 
     in section 7705(e)(2) of the Internal Revenue Code of 1986 
     between such a person and a customer, and the employer 
     identification number of such customer, and
       (2) such other information as the Secretary determines is 
     essential to promote compliance with respect to the credits 
     identified in section 3511(d) of such Code, and

     shall be designed in a manner which streamlines, to the 
     extent possible, the application of requirements of such 
     amendments, the exchange of information between a certified 
     professional employer organization and its customers, and the 
     reporting and recordkeeping obligations of the certified 
     professional employer organization.
       (f) User Fees.--Subsection (b) of section 7528 is amended 
     by adding at the end the following new paragraph:
       ``(4) Certified professional employer organizations.--The 
     annual fee charged under the program in connection with the 
     ongoing certification by the Secretary of a professional 
     employer organization under section 7705 shall not exceed 
     $1,000.''.
       (g) Effective Dates.--
       (1) In general.--The amendments made by this section shall 
     apply with respect to wages for services performed on or 
     after January 1 of the first calendar year beginning more 
     than 12 months after the date of the enactment of this Act.
       (2) Certification program.--The Secretary of the Treasury 
     shall establish the certification program described in 
     section 7705(b) of the Internal Revenue Code of 1986, as 
     added by subsection (b), not later than 6 months before the 
     effective date determined under paragraph (1).
       (h) No Inference.--Nothing contained in this section or the 
     amendments made by this section shall be construed to create 
     any inference with respect to the determination of who is an 
     employee or employer--
       (1) for Federal tax purposes (other than the purposes set 
     forth in the amendments made by this section), or
       (2) for purposes of any other provision of law.
                                 ______
                                 
  SA 3180. Mr. COONS (for himself, Mr. Moran, Ms. Stabenow, Ms. 
Murkowski, and Ms. Collins) submitted an amendment intended to be 
proposed by him to the bill H.R. 3474, to amend the Internal Revenue 
Code of 1986 to allow employers to exempt employees with health 
coverage under TRICARE or the Veterans Administration from being taken 
into account for purposes of the employer mandate under the Patient 
Protection and Affordable Care Act; which was ordered to lie on the 
table; as follows:

       At the end, add the following:

                  TITLE _--MASTER LIMITED PARTNERSHIPS

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``Master Limited 
     Partnerships Parity Act''.

     SEC. _02. EXTENSION OF PUBLICLY TRADED PARTNERSHIP OWNERSHIP 
                   STRUCTURE TO ENERGY POWER GENERATION PROJECTS, 
                   TRANSPORTATION FUELS, AND RELATED ENERGY 
                   ACTIVITIES.

       (a) In General.--Subparagraph (E) of section 7704(d)(1) is 
     amended--
       (1) by striking ``income and gains derived from the 
     exploration'' and inserting ``income and gains derived from 
     the following:
       ``(i) Minerals, natural resources, etc.--The exploration'',
       (2) by inserting ``or'' before ``industrial source'',
       (3) by inserting a period after ``carbon dioxide'', and
       (4) by striking ``, or the transportation or storage'' and 
     all that follows and inserting the following:
       ``(ii) Renewable energy.--The generation of electric power 
     exclusively utilizing any resource described in section 
     45(c)(1) or energy property described in section 48 
     (determined without regard to any termination date), or in 
     the case of a facility described in paragraph (3) or (7) of 
     section 45(d) (determined without regard to any placed in 
     service date or date by which construction of the facility is 
     required to begin), the accepting or processing of such 
     resource.
       ``(iii) Electricity storage devices.--The receipt and sale 
     of electric power that has been stored in a device directly 
     connected to the grid.
       ``(iv) Combined heat and power.--The generation, storage, 
     or distribution of thermal energy exclusively utilizing 
     property described in section 48(c)(3) (determined without 
     regard to subparagraphs (B) and (D) thereof and without 
     regard to any placed in service date).
       ``(v) Renewable thermal energy.--The generation, storage, 
     or distribution of thermal energy exclusively using any 
     resource described in section 45(c)(1) or energy property 
     described in clause (i) or (iii) of section 48(a)(3)(A).
       ``(vi) Waste heat to power.--The use of recoverable waste 
     energy, as defined in section 371(5) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6341(5)) (as in effect on the 
     date of the enactment of the Master Limited Partnerships 
     Parity Act).
       ``(vii) Renewable fuel infrastructure.--The storage or 
     transportation of any fuel described in subsection (b), (c), 
     (d), or (e) of section 6426.
       ``(viii) Renewable fuels.--The production, storage, or 
     transportation of any renewable fuel described in section 
     211(o)(1)(J) of the Clean Air Act (42 U.S.C. 7545(o)(1)(J)) 
     (as in effect on the date of the enactment of the Master 
     Limited Partnerships Parity Act) or section 40A(d)(1).

[[Page 8376]]

       ``(ix) Renewable chemicals.--The production, storage, or 
     transportation of any renewable chemical (as defined in 
     paragraph (6)).
       ``(x) Energy efficient buildings.--The audit and 
     installation through contract or other agreement of any 
     energy efficient building property described in section 
     179D(c)(1).
       ``(xi) Gasification with sequestration.--The production of 
     any product from a project that meets the requirements of 
     subparagraphs (A) and (B) of section 48B(c)(1) and that 
     separates and sequesters in secure geological storage (as 
     determined under section 45Q(d)(2)) at least 75 percent of 
     such project's total qualified carbon dioxide (as defined in 
     section 45Q(b)).
       ``(xii) Carbon capture and sequestration.--The generation 
     or storage of electric power produced from any facility which 
     is a qualified facility described in section 45Q(c) and which 
     disposes of any captured qualified carbon dioxide (as defined 
     in section 45Q(b)) in secure geological storage (as 
     determined under section 45Q(d)(2)).''.
       (b) Renewable Chemical.--Section 7704(d) is amended by 
     adding at the end the following new paragraph:
       ``(6) Renewable chemical.--The term `renewable chemical' 
     means a monomer, polymer, plastic, formulated product, or 
     chemical substance produced from renewable biomass (as 
     defined in section 9001(12) of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 8101(12)), as in effect on 
     the date of the enactment of the Master Limited Partnerships 
     Parity Act).''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act, 
     in taxable years ending after such date.
                                 ______
                                 
  SA 3181. Mr. LEVIN (for himself, Mr. Brown, Mrs. Shaheen, Ms. Hirono, 
and Mr. Whitehouse) submitted an amendment intended to be proposed to 
amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend 
the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       Strike section 135.
                                 ______
                                 
  SA 3182. Mr. CARDIN (for himself, Mrs. Feinstein, and Mr. Schatz) 
submitted an amendment intended to be proposed to amendment SA 3060 
proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal 
Revenue Code of 1986 to allow employers to exempt employees with health 
coverage under TRICARE or the Veterans Administration from being taken 
into account for purposes of the employer mandate under the Patient 
Protection and Affordable Care Act; which was ordered to lie on the 
table; as follows:

       Strike section 151 and insert the following:

     SEC. 151. EXTENSION AND MODIFICATION OF CREDIT FOR 
                   NONBUSINESS ENERGY PROPERTY.

       (a) Treatment in 2014.--
       (1) In general.--Paragraph (2) of section 25C(g) is amended 
     by striking ``December 31, 2013'' and inserting ``December 
     31, 2014''.
       (2) Updated energy star requirements for windows, doors, 
     skylights, and roofing.--
       (A) In general.--Paragraph (1) of section 25C(c) is amended 
     by striking ``which meets'' and all that follows through 
     ``requirements)''.
       (B) Energy efficient building envelope component.--
     Subsection (c) of section 25C is amended by redesignating 
     paragraphs (2) and (3) as paragraphs (3) and (4), 
     respectively, and by inserting after paragraph (1) the 
     following new paragraph:
       ``(2) Energy efficient building envelope component.--The 
     term `energy efficient building envelope component' means a 
     building envelope component which meets--
       ``(A) applicable Energy Star program requirements, in the 
     case of a roof or roof products,
       ``(B) version 6.0 Energy Star program requirements, in the 
     case of an exterior window, a skylight, or an exterior door, 
     and
       ``(C) the prescriptive criteria for such component 
     established by the 2009 International Energy Conservation 
     Code, as such Code (including supplements) is in effect on 
     the date of the enactment of the American Recovery and 
     Reinvestment Tax Act of 2009, in the case of any other 
     component.''.
       (C) Conforming amendment.--Subparagraph (D) of section 
     25C(c)(3), as so redesignated, is amended to read as follows:
       ``(D) any roof or roof products which are installed on a 
     dwelling unit and are specifically and primarily designed to 
     reduce the heat gain of such dwelling unit.''.
       (3) Separate standards for tankless and storage water 
     heaters.--
       (A) In general.--Subparagraph (D) of section 25C(d)(3) is 
     amended by striking ``which has either'' and all that follows 
     and inserting ``which has either--
       ``(i) in the case of a storage water heater, an energy 
     factor of at least 0.80 or a thermal efficiency of at least 
     90 percent, and
       ``(ii) in the case of any other water heater, an energy 
     factor of at least 0.90 or a thermal efficiency of at least 
     90 percent, and''.
       (B) Storage water heaters.--Paragraph (3) of section 25C(d) 
     is amended by adding at the end the following flush sentence:

     ``For purposes of subparagraph (D)(i), the term `storage 
     water heater' means a water heater that has a water storage 
     capacity of more than 20 gallons but not more than 55 
     gallons.''.
       (4) Modification of testing standards for biomass stoves.--
     Subparagraph (E) of section 25C(d)(3) is amended by inserting 
     before the period the following: ``, when tested using the 
     higher heating value of the fuel and in accordance with the 
     Canadian Standards Administration B415.1 test protocol''.
       (5) Separate standard for oil hot water boilers.--Paragraph 
     (4) of section 25C(d) is amended by striking ``95'' and 
     inserting ``95 (90 in the case of an oil hot water boiler)''.
       (6) Effective date.--The amendments made by this subsection 
     shall apply to property placed in service after December 31, 
     2013.
       (b) Treatment in 2015.--
       (1) Performance based home energy improvements.--Subpart A 
     of part IV of subchapter A of chapter 1 is amended by adding 
     at the end the following new section:

     ``SEC. 25E. PERFORMANCE BASED ENERGY IMPROVEMENTS.

       ``(a) In General.--In the case of an individual, there 
     shall be allowed as a credit against the tax imposed by this 
     chapter for the taxable year for a qualified whole home 
     energy efficiency retrofit an amount determined under 
     subsection (b).
       ``(b) Amount Determined.--
       ``(1) In general.--Subject to paragraph (4), the amount 
     determined under this subsection is equal to--
       ``(A) the base amount under paragraph (2), increased by
       ``(B) the amount determined under paragraph (3).
       ``(2) Base amount.--For purposes of paragraph (1)(A), the 
     base amount is $2,000, but only if the energy use for the 
     residence is reduced by at least 20 percent below the 
     baseline energy use for such residence as calculated 
     according to paragraph (5).
       ``(3) Increase amount.--For purposes of paragraph (1)(B), 
     the amount determined under this paragraph is $500 for each 
     additional 5 percentage point reduction in energy use.
       ``(4) Limitation.--In no event shall the amount determined 
     under this subsection exceed the lesser of--
       ``(A) $5,000 with respect to any residence, or
       ``(B) 30 percent of the qualified home energy efficiency 
     expenditures paid or incurred by the taxpayer under 
     subsection (c) with respect to such residence.
       ``(5) Determination of energy use reduction.--For purposes 
     of this subsection--
       ``(A) In general.--The reduction in energy use for any 
     residence shall be determined by modeling the annual 
     predicted percentage reduction in total energy costs for 
     heating, cooling, hot water, and permanent lighting. It shall 
     be modeled using computer modeling software approved under 
     subsection (d)(2) and a baseline energy use calculated 
     according to subsection (d)(1)(C).
       ``(B) Energy costs.--For purposes of subparagraph (A), the 
     energy cost per unit of fuel for each fuel type shall be 
     determined by dividing the total actual energy bill for the 
     residence for that fuel type for the most recent available 
     12-month period by the total energy units of that fuel type 
     used over the same period.
       ``(c) Qualified Home Energy Efficiency Expenditures.--For 
     purposes of this section, the term `qualified home energy 
     efficiency expenditures'--
       ``(1) means any amount paid or incurred by the taxpayer 
     during the taxable year for a qualified whole home energy 
     efficiency retrofit, including the cost of diagnostic 
     procedures, labor, and modeling,
       ``(2) includes only measures that have an average estimated 
     life of 5 years or more as determined by the Secretary, after 
     consultation with the Secretary of Energy, and
       ``(3) does not include any amount which is paid or incurred 
     in connection with any expansion of the building envelope of 
     the residence.
       ``(d) Qualified Whole Home Energy Efficiency Retrofit.--For 
     purposes of this section--
       ``(1) In general.--The term `qualified whole home energy 
     efficiency retrofit' means the implementation of measures 
     placed in service during the taxable year intended to reduce 
     the energy use of the principal residence of the taxpayer 
     which is located in the United States. A qualified whole home 
     energy efficiency retrofit shall--
       ``(A) subject to paragraph (4), be designed, implemented, 
     and installed by a contractor which is--
       ``(i) accredited by the Building Performance Institute 
     (hereafter in this section referred to as `BPI') or a 
     preexisting BPI accreditation-based State certification 
     program with enhancements to achieve State energy policy,

[[Page 8377]]

       ``(ii) a Residential Energy Services Network (hereafter in 
     this section referred to as `RESNET') accredited Energy Smart 
     Home Performance Team, or
       ``(iii) accredited by an equivalent certification program 
     approved by the Secretary, after consultation with the 
     Secretary of Energy, for this purpose,
       ``(B) install a set of measures modeled to achieve a 
     reduction in energy use of at least 20 percent below the 
     baseline energy use established in subparagraph (C), using 
     computer modeling software approved under paragraph (2),
       ``(C) establish the baseline energy use by calibrating the 
     model using sections 3 and 4 and Annex D of BPI Standard BPI-
     2400-S-2011: Standardized Qualification of Whole House Energy 
     Savings Estimates, or an equivalent standard approved by the 
     Secretary, after consultation with Secretary of Energy, for 
     this purpose,
       ``(D) document the measures implemented in the residence 
     through photographs taken before and after the retrofit, 
     including photographs of its visible energy systems and 
     envelope as relevant, and
       ``(E) implement a test-out procedure, following guidelines 
     of the applicable certification program specified under 
     clause (i) or (ii) of subparagraph (A), or equivalent 
     guidelines approved by the Secretary, after consultation with 
     the Secretary of Energy, for this purpose, to ensure--
       ``(i) the safe operation of all systems post retrofit, and
       ``(ii) that all improvements are included in, and have been 
     installed according to, standards of the applicable 
     certification program specified under clause (i) or (ii) of 
     subparagraph (A), or equivalent standards approved by the 
     Secretary, after consultation with the Secretary of Energy, 
     for this purpose.

     For purposes of subparagraph (A)(iii), an organization or 
     State may submit an equivalent certification program for 
     approval by the Secretary, in consultation with the Secretary 
     of Energy. The Secretary shall approve or deny such 
     submission not later than 180 days after receipt, and, if the 
     Secretary fails to respond in that time period, the submitted 
     equivalent certification program shall be considered 
     approved.
       ``(2) Approved modeling software.--For purposes of 
     paragraph (1)(B), the contractor (or, if applicable, the 
     person described in paragraph (4)) shall use modeling 
     software certified by RESNET as following the software 
     verification test suites in section 4.2.1 of RESNET 
     Publication No. 06-001 or certified by an alternative 
     organization as following an equivalent standard, as approved 
     by the Secretary, after consultation with the Secretary of 
     Energy, for this purpose.
       ``(3) Documentation.--The Secretary, after consultation 
     with the Secretary of Energy, shall prescribe regulations 
     directing what specific documentation is required to be 
     retained or submitted by the taxpayer in order to claim the 
     credit under this section, which shall include, in addition 
     to the photographs under paragraph (1)(D), a form approved by 
     the Secretary that is completed and signed by the qualified 
     whole home energy efficiency retrofit contractor under 
     penalties of perjury. Such form shall include--
       ``(A) a statement that the contractor (or, if applicable, 
     the person described in paragraph (4)) followed the specified 
     procedures for establishing baseline energy use and 
     estimating reduction in energy use,
       ``(B) the name of the software used for calculating the 
     baseline energy use and reduction in energy use, the 
     percentage reduction in projected energy savings achieved, 
     and a statement that such software was certified for this 
     program by the Secretary, after consultation with the 
     Secretary of Energy,
       ``(C) a statement that the contractor (or, if applicable, 
     the person described in paragraph (4)) will retain the 
     details of the calculations and underlying energy bills for 5 
     years and will make such details available for inspection by 
     the Secretary or the Secretary of Energy, if so requested,
       ``(D) a list of measures installed and a statement that all 
     measures included in the reduction in energy use estimate are 
     included in, and installed according to, standards of the 
     applicable certification program specified under clause (i) 
     or (ii) of subparagraph (A), or equivalent standards approved 
     by the Secretary, after consultation with the Secretary of 
     Energy,
       ``(E) a statement that the contractor (or, if applicable, 
     the person described in paragraph (4)) meets the requirements 
     of paragraph (1)(A), and
       ``(F) documentation of the total cost of the project in 
     order to comply with the limitation under subsection 
     (b)(4)(B).
       ``(4) Certified home energy rater.--For purposes of 
     paragraph (1)(A), a contractor shall be deemed to have 
     satisfied the accreditation requirement under such paragraph 
     if the contractor enters into a contract with a person that 
     satisfies such accreditation requirement for purposes of 
     modeling the energy use reduction described in paragraph 
     (1)(B).
       ``(e) Additional Rules.--For purposes of this section--
       ``(1) No double benefit.--
       ``(A) In general.--With respect to any residence, no credit 
     shall be allowed under this section for any taxable year in 
     which the taxpayer claims a credit under section 25C.
       ``(B) Renewable energy systems and appliances.--In the case 
     of a renewable energy system or appliance that qualifies for 
     another credit under this chapter, the resulting reduction in 
     energy use shall not be taken into account in determining the 
     percentage energy use reductions under subsection (b).
       ``(C) No double benefit for certain expenditures.--The term 
     `qualified home energy efficiency expenditures' shall not 
     include any expenditure for which a deduction or credit is 
     claimed by the taxpayer under this chapter for the taxable 
     year or with respect to which the taxpayer receives any 
     Federal energy efficiency rebate.
       ``(2) Principal residence.--The term `principal residence' 
     has the same meaning as when used in section 121.
       ``(3) Special rules.--Rules similar to the rules under 
     paragraphs (4), (5), (6), (7), and (8) of section 25D(e) and 
     section 25C(e)(2) shall apply, as determined by the 
     Secretary, after consultation with the Secretary of Energy.
       ``(4) Basis adjustments.--For purposes of this subtitle, if 
     a credit is allowed under this section with respect to any 
     expenditure with respect to any property, the increase in the 
     basis of such property which would (but for this paragraph) 
     result from such expenditure shall be reduced by the amount 
     of the credit so allowed.
       ``(5) Election not to claim credit.--No credit shall be 
     determined under subsection (a) for the taxable year if the 
     taxpayer elects not to have subsection (a) apply to such 
     taxable year.
       ``(6) Multiple year retrofits.--If the taxpayer has claimed 
     a credit under this section in a previous taxable year, the 
     baseline energy use for the calculation of reduced energy use 
     must be established after the previous retrofit has been 
     placed in service.
       ``(f) Termination.--This section shall not apply with 
     respect to any costs paid or incurred after December 31, 
     2015.
       ``(g) Secretary Review.--The Secretary, after consultation 
     with the Secretary of Energy, shall establish a review 
     process for the retrofits performed, including an estimate of 
     the usage of the credit and a statistically valid analysis of 
     the average actual energy use reductions, utilizing utility 
     bill data collected on a voluntary basis, and report to 
     Congress not later than June 30, 2015, any findings and 
     recommendations for--
       ``(1) improvements to the effectiveness of the credit under 
     this section, and
       ``(2) expansion of the credit under this section to rental 
     units.''.
       (2) Conforming amendments.--
       (A) Section 1016(a) is amended--
       (i) by striking ``and'' at the end of paragraph (36),
       (ii) by striking the period at the end of paragraph (37) 
     and inserting ``, and'', and
       (iii) by adding at the end the following new paragraph:
       ``(38) to the extent provided in section 25E(e)(4), in the 
     case of amounts with respect to which a credit has been 
     allowed under section 25E.''.
       (B) Section 6501(m) is amended by inserting ``25E(e)(5),'' 
     after ``section''.
       (C) The table of sections for subpart A of part IV of 
     subchapter A chapter 1 is amended by inserting after the item 
     relating to section 25D the following new item:

``Sec. 25E. Performance based energy improvements.''.

       (3) Effective date.--The amendments made by this subsection 
     shall apply to amounts paid or incurred for a qualified whole 
     home energy efficiency retrofit placed in service after 
     December 31, 2014.
                                 ______
                                 
  SA 3183. Mr. CARDIN (for himself and Mr. Schumer) submitted an 
amendment intended to be proposed to amendment SA 3060 proposed by Mr. 
Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the end, add the following:

                       TITLE _--OTHER PROVISIONS

     SEC. __. TREATMENT OF PARTNERSHIP ALLOCATIONS OF THE 
                   REHABILITATION TAX CREDIT BEFORE 2014.

       (a) Safe Harbor.--
       (1) In general.--An arrangement for the allocation of the 
     credit determined under section 47(a) of the Internal Revenue 
     Code of 1986 with respect to any building placed in service 
     before January 1, 2014, shall not fail to be treated as a 
     partnership for purposes of the Internal Revenue Code of 1986 
     if such arrangement meets the requirements of paragraph (2).
       (2) Safe-harbor requirements.--An arrangement meets the 
     requirements of this paragraph if--
       (A) such arrangement is a written agreement which is 
     intended to be a partnership agreement for purposes of the 
     Internal Revenue Code of 1986,
       (B) such arrangement allows for a distributive share of the 
     credit determined under

[[Page 8378]]

     section 47(a) of such Code to taxpayers who make a qualified 
     substantial capital contribution with respect to the 
     rehabilitation of a qualified rehabilitated building, and
       (C) under the terms of such arrangement, after the date 
     that is 1 year after the date of the enactment of this Act, 
     neither any principal nor any related person--
       (i) is obligated to acquire an interest of another person 
     in the partnership for a price that exceeds the fair market 
     value of the interest,
       (ii) is permitted to acquire another person's interest in 
     the partnership for a price that is less than the fair market 
     value of the interest,
       (iii) is required--

       (I) to distribute to another partner any amount which is 
     secured by cash or cash equivalents, or
       (II) to acquire the interest of any other partner through 
     funds secured by cash or cash equivalents, and

       (iv) directly or indirectly guarantees or otherwise insures 
     the amount of any credit determined under section 47(a) of 
     such Code, or the cash equivalent of any such credit.
       (3) Definitions.--For purposes of this section--
       (A) Qualified substantial capital contribution.--The term 
     ``qualified substantial capital contribution'' means, with 
     respect to any qualified rehabilitated building, a capital 
     contribution which--
       (i) is made not later than the date that is 12 months after 
     the date such qualified rehabilitated building was placed in 
     service, and
       (ii) is greater than the lesser of--

       (I) 5 percent of the reasonably anticipated qualified 
     rehabilitation expenditures (as defined in section 47(c)(2) 
     of the Internal Revenue Code of 1986) with respect to such 
     qualified rehabilitated building, or
       (II) $200,000.

       (B) Principal.--The term ``principal'' means any person 
     under the arrangement--
       (i) who owns the qualified rehabilitated building described 
     in paragraph (2)(B),
       (ii) who is treated as having acquired such qualified 
     rehabilitated building by reason of an election under 
     50(d)(5) of the Internal Revenue Code of 1986 , or
       (iii) who manages the partnership or is authorized to act 
     on behalf of the partnership.
       (C) Related person.--The term ``related person'' has the 
     meaning given such term under section 465(b)(3)(C) of the 
     Internal Revenue Code of 1986.
       (D) Qualified rehabilitated building.--The term ``qualified 
     rehabilitated building'' has the meaning given such term 
     under section 47(c)(1) of the Internal Revenue Code of 1986.
       (b) Treatment of Assessments and Enforcement Actions 
     Relating to Credit.--In the case of any arrangement for the 
     allocation of the credit determined under section 47(a) of 
     the Internal Revenue Code of 1986 with respect to any 
     qualified rehabilitated building placed in service before 
     January 1, 2014--
       (1) no assessment shall be made under section 6201 of the 
     Internal Revenue Code of 1986 with respect to such 
     arrangement, and no enforcement action with respect to any 
     such assessment (including any notice of deficiency or the 
     imposition of any lien or levy) shall proceed, before the 
     date that is 1 year after the date of the enactment of this 
     Act, and
       (2) the running of the period of limitations under section 
     6229, 6501, or 6502 of the Internal Revenue Code of 1986 with 
     respect to such arrangement shall be suspended for the period 
     described in paragraph (1).
                                 ______
                                 
  SA 3184. Mr. CARDIN (for himself, Ms. Collins, Mr. Casey, Mrs. 
Shaheen, Mr. Portman, Mr. King, Mr. Wicker, Mr. Coons, Ms. Hirono, Mr. 
Schumer, Mr. Leahy, Ms. Mikulski, Ms. Ayotte, Mr. Begich, Mr. Heinrich, 
Mr. Udall of Colorado, Ms. Murkowski, Mr. Schatz, and Mr. Roberts) 
submitted an amendment intended to be proposed by him to the bill H.R. 
3474, to amend the Internal Revenue Code of 1986 to allow employers to 
exempt employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the end, add the following:

                   TITLE _--SMALL BREWER REINVESTMENT

     SEC. _01. SHORT TITLE.

       This Act may be cited as the ``Small Brewer Reinvestment 
     and Expanding Workforce Act of 2013''.

     SEC. _02. REDUCED RATE OF EXCISE TAX ON BEER PRODUCED 
                   DOMESTICALLY BY CERTAIN QUALIFYING PRODUCERS.

       (a) In General.--Paragraph (2) of section 5051(a) is 
     amended--
       (1) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (C) and (D), respectively, and
       (2) by striking subparagraph (A) and inserting the 
     following new subparagraphs:
       ``(A) In general.--In the case of a brewer who produces not 
     more than 6,000,000 barrels of beer during the calendar year, 
     the per barrel rate of tax imposed by this section shall be--
       ``(i) $3.50 on the first 60,000 qualified barrels of 
     production, and
       ``(ii) $16 on the first 1,940,000 qualified barrels of 
     production to which clause (i) does not apply.
       ``(B) Qualified barrels of production.--For purposes of 
     this paragraph, the term `qualified barrels of production' 
     means, with respect to any brewer for any calendar year, the 
     number of barrels of beer which are removed in such year for 
     consumption or sale and which have been brewed or produced by 
     such brewer at qualified breweries in the United States.''.
       (b) Conforming Amendments.--
       (1) Subparagraph (C) of section 5051(a)(2), as redesignated 
     by this section, is amended--
       (A) by striking ``2,000,000 barrel quantity'' and inserting 
     ``6,000,000 barrel quantity'', and
       (B) by striking ``60,000 barrel quantity'' and inserting 
     ``60,000 and 1,940,000 barrel quantities''.
       (2) Subparagraph (D) of such section, as so redesignated, 
     is amended by striking ``2,000,000 barrels'' and inserting 
     ``6,000,000 barrels''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to beer removed during calendar years beginning 
     after the date of the enactment of this Act.
                                 ______
                                 
  SA 3185. Mr. CARDIN (for himself, Mrs. Feinstein, and Mr. Schatz) 
submitted an amendment intended to be proposed to amendment SA 3060 
proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal 
Revenue Code of 1986 to allow employers to exempt employees with health 
coverage under TRICARE or the Veterans Administration from being taken 
into account for purposes of the employer mandate under the Patient 
Protection and Affordable Care Act; which was ordered to lie on the 
table; as follows:

       Strike section 159 and insert the following:

     SEC. 159. EXTENSION AND MODIFICATION OF DEDUCTION FOR ENERGY-
                   EFFICIENT COMMERCIAL BUILDINGS; DEDUCTION FOR 
                   RETROFITS OF EXISTING COMMERCIAL AND 
                   MULTIFAMILY BUILDINGS.

       (a) Extension.--
       (1) Through 2015.--Section 179D(h) is amended by striking 
     ``December 31, 2013'' and inserting ``December 31, 2015''.
       (2) Inclusion of multifamily buildings.--
       (A) In general.--Subparagraph (B) of section 179D(c)(1) is 
     amended by striking ``building'' and inserting ``commercial 
     building or multifamily building''.
       (B) Definitions.--Subsection (c) of section 179D is amended 
     by adding at the end the following new paragraphs:
       ``(3) Commercial building.--The term `commercial building' 
     means a building with a primary use or purpose other than as 
     residential housing.
       ``(4) Multifamily building.--The term `multifamily 
     building' means a structure of 5 or more dwelling units with 
     a primary use as residential housing, and includes such 
     buildings owned and operated as a condominium, cooperative, 
     or other common interest community.''.
       (b) Increase in Maximum Amount of Deduction.--
       (1) In general.--Subparagraph (A) of section 179D(b)(1) is 
     amended by striking ``$1.80'' and inserting ``$3.00''.
       (2) Partial allowance.--Paragraph (1) of section 179D(d) is 
     amended to read as follows:
       ``(1) Partial allowance.--
       ``(A) In general.--Except as provided in subsection (f), 
     if--
       ``(i) the requirement of subsection (c)(1)(D) is not met, 
     but
       ``(ii) there is a certification in accordance with 
     paragraph (6) that--

       ``(I) any system referred to in subsection (c)(1)(C) 
     satisfies the energy-savings targets established by the 
     Secretary under subparagraph (B) with respect to such system, 
     or
       ``(II) the systems referred to in subsection (c)(1)(C)(ii) 
     and subsection (c)(1)(C)(iii) together satisfy the energy-
     savings targets established by the Secretary under 
     subparagraph (B) with respect to such systems,

     then the requirement of subsection (c)(1)(D) shall be treated 
     as met with respect to such system or systems, and the 
     deduction under subsection (a) shall be allowed with respect 
     to energy-efficient commercial building property installed as 
     part of such system and as part of a plan to meet such 
     targets, except that subsection (b) shall be applied to such 
     property described in clause (ii)(I) by substituting `$1.00' 
     for `$3.00' and to such property described in clause (ii)(II) 
     by substituting `$2.20' for `$3.00'.
       ``(B) Regulations.--
       ``(i) In general.--The Secretary, after consultation with 
     the Secretary of Energy, shall promulgate regulations 
     establishing a target for each system described in subsection 
     (c)(1)(C) which, if such targets were met for all such 
     systems, the property would meet the requirements of 
     subsection (c)(1)(D).
       ``(ii) Safe harbor for combined systems.--The Secretary, 
     after consultation with the Secretary of Energy, and not 
     later

[[Page 8379]]

     than 6 months after the date of the enactment of the Energy 
     Efficiency Tax Incentives Act, shall promulgate regulations 
     regarding combined envelope and mechanical system performance 
     that detail appropriate components, efficiency levels, or 
     other relevant information for the systems referred to in 
     subsection (c)(1)(C)(ii) and subsection (c)(1)(C)(iii) 
     together to be deemed to have achieved two-thirds of the 
     requirements of subsection (c)(1)(D).''.
       (c) Denial of Double Benefit Rules.--
       (1) In general.--Section 179D is amended by redesignating 
     subsection (h) as subsection (i) and by inserting after 
     subsection (g) the following new subsection:
       ``(h) Tax Incentives Not Available.--Energy-efficient 
     measures for which a deduction is allowed under this section 
     shall not be eligible for a deduction under section 179F.''.
       (2) Low-income housing exception to basis reduction.--
     Subsection (e) of section 179D is amended by inserting 
     ``(other than property placed in service in a qualified low-
     income building (within the meaning of section 42))'' after 
     ``building property''.
       (d) Allocation of Deduction.--Paragraph (4) of section 
     179D(d) is amended to read as follows:
       ``(4) Allocation of deduction.--
       ``(A) In general.--Not later than 180 days after the date 
     of the enactment of this subsection, the Secretary, in 
     consultation with the Secretary of Energy, shall promulgate a 
     regulation to allow the owner of a commercial or multifamily 
     building, including a government, tribal, or non-profit 
     owner, to allocate any deduction allowed under this section, 
     or a portion thereof, to the person primarily responsible for 
     designing the property in lieu of the owner or to a 
     commercial tenant that leases or otherwise occupies space in 
     such building pursuant to a written agreement. Such person 
     shall be treated as the taxpayer for purposes of this 
     section.
       ``(B) Form of allocation.--An allocation made under this 
     paragraph shall be in writing and in a form that meets the 
     form of allocation requirements in Notice 2008-40 of the 
     Internal Revenue Service.
       ``(C) Provision of allocation.--Not later than 30 days 
     after receipt of a written request from a person eligible to 
     receive an allocation under this paragraph, the owner of a 
     building that makes an allocation under this paragraph shall 
     provide the form of allocation (as described in subparagraph 
     (B)) to such person.
       ``(D) Allocation from public owner of building.--In the 
     case of a commercial building or multifamily building that is 
     owned by a Federal, State, or local government or a 
     subdivision thereof, Notice 2006-52 of the Internal Revenue 
     Service, as amplified by Notice 2008-40, shall apply to any 
     allocation.''.
       (e) Treatment of Basis in Context of Allocation.--
     Subsection (e) of section 179D, as amended by subsection 
     (c)(2), is amended by inserting ``or so allocated'' after 
     ``so allowed''.
       (f) Earnings and Profits Conformity for Real Estate 
     Investment Trusts.--Subparagraph (B) of section 312(k)(3) is 
     amended--
       (1) by striking ``.--For purposes of'' and inserting ``.--
       ``(i) In general.--Except as provided in clause (ii), for 
     purposes of'', and
       (2) by adding at the end the following new clause:
       ``(ii) Earnings and profits conformity for real estate 
     investment trusts.--

       ``(I) In general.--For purposes of computing the earnings 
     and profits of a real estate investment trust (other than a 
     captive real estate investment trust), the entire amount 
     deductible under section 179D shall be allowed as deductions 
     in the taxable years for which such amounts are claimed under 
     such section.
       ``(II) Captive real estate investment trust.--The term 
     `captive real estate investment trust' means a real estate 
     investment trust the shares or beneficial interests of which 
     are not regularly traded on an established securities market 
     and more than 50 percent of the voting power or value of the 
     beneficial interests or shares of which are owned or 
     controlled, directly or indirectly, or constructively, by a 
     single entity that is treated as an association taxable as a 
     corporation under this title and is not exempt from taxation 
     pursuant to the provisions of section 501(a).
       ``(III) Rules of application.--For purposes of this clause, 
     the constructive ownership rules of section 318(a), as 
     modified by section 856(d)(5), shall apply in determining the 
     ownership of stock, assets, or net profits of any person, and 
     the following entities are not considered an association 
     taxable as a corporation:

       ``(aa) Any real estate investment trust other than a 
     captive real estate investment trust.
       ``(bb) Any qualified real estate investment trust 
     subsidiary under section 856, other than a qualified REIT 
     subsidiary of a captive real estate investment trust.
       ``(cc) Any Listed Australian Property Trust (meaning an 
     Australian unit trust registered as a `Managed Investment 
     Scheme' under the Australian Corporations Act in which the 
     principal class of units is listed on a recognized stock 
     exchange in Australia and is regularly traded on an 
     established securities market), or an entity organized as a 
     trust, provided that a Listed Australian Property Trust owns 
     or controls, directly or indirectly, 75 percent or more of 
     the voting power or value of the beneficial interests or 
     shares of such trust.
       ``(dd) Any corporation, trust, association, or partnership 
     organized outside the laws of the United States and which 
     satisfies the criteria described in subclause (IV).

       ``(IV) Criteria.--The criteria described in this subclause 
     are as follows:

       ``(aa) At least 75 percent of the entity's total asset 
     value at the close of its taxable year is represented by real 
     estate assets (as defined in section 856(c)(5)(B)), cash and 
     cash equivalents, and United States Government securities.
       ``(bb) The entity is not subject to tax on amounts 
     distributed to its beneficial owners, or is exempt from 
     entity-level taxation.
       ``(cc) The entity distributes at least 85 percent of its 
     taxable income (as computed in the jurisdiction in which it 
     is organized) to the holders of its shares or certificates of 
     beneficial interest on an annual basis.
       ``(dd) Not more than 10 percent of the voting power or 
     value in such entity is held directly or indirectly or 
     constructively by a single entity or individual, or the 
     shares or beneficial interests of such entity are regularly 
     traded on an established securities market.
       ``(ee) The entity is organized in a country which has a tax 
     treaty with the United States.''.
       (g) Rules for Lighting Systems.--Subsection (f) of section 
     179D is amended to read as follows:
       ``(f) Rules for Lighting Systems.--
       ``(1) In general.--With respect to property that is part of 
     a lighting system, the deduction allowed under subsection (a) 
     shall be equal to--
       ``(A) for a lighting system that includes installation of a 
     lighting control described in paragraph (2)(A), the 
     applicable amount determined under paragraph (3)(A),
       ``(B) for a lighting system that includes installation of a 
     lighting control described in paragraph (2)(B), the 
     applicable amount determined under paragraph (3)(B), or
       ``(C) for a lighting system that does not include 
     installation of any lighting controls described in 
     subparagraph (A) or (B) of paragraph (2), the applicable 
     amount determined under paragraph (3)(C).
       ``(2) Energy saving controls.--
       ``(A) Lighting controls in certain spaces.--For purposes of 
     paragraph (1)(A), the lighting controls described in this 
     subparagraph are the following:
       ``(i) Occupancy sensors (as described in paragraph (4)(I)) 
     in spaces not greater than 800 square feet.
       ``(ii) Bi-level controls (as described in paragraph 
     (4)(A)).
       ``(iii) Continuous or step dimming controls (as described 
     in subparagraphs (B) and (K) of paragraph (4)).
       ``(iv) Daylight dimming where sufficient daylight is 
     available (as described in paragraph (4)(C)).
       ``(v) A multi-scene controller (as described in paragraph 
     (4)(H)).
       ``(vi) Time scheduling controls (as described in paragraph 
     (4)(L)), provided that such controls are not required by 
     Standard 90.1-2010.
       ``(vii) Such other lighting controls as the Secretary, in 
     consultation with the Secretary of Energy, determines 
     appropriate.
       ``(B) Other control types.--For purposes of paragraph 
     (1)(B), the lighting controls described in this subparagraph 
     are the following:
       ``(i) Occupancy sensors (as described in paragraph (4)(I)) 
     in spaces greater than 800 square feet.
       ``(ii) Demand responsive controls (as described in 
     paragraph (4)(D)).
       ``(iii) Lumen maintenance controls (as described in 
     paragraph (4)(F)) where solid state lighting is used.
       ``(iv) Such other lighting controls as the Secretary, in 
     consultation with the Secretary of Energy, determines 
     appropriate.
       ``(3) Applicable amount.--
       ``(A) Lighting controls in certain spaces.--For purposes of 
     paragraph (1)(A), the applicable amount shall be determined 
     in accordance with the following table:

``If the percentage of reduction in lighting power density is not less 
  than:                 The amount of the deduction per square foot is:
  15 percent.....................................................$0.30 
  20 percent.....................................................$0.44 
  25 percent.....................................................$0.58 
  30 percent.....................................................$0.72 
  35 percent.....................................................$0.86 
  40 percent.....................................................$1.00.
       ``(B) Lighting controls in larger spaces and where solid 
     lighting is used.--For purposes of paragraph (1)(B), the 
     applicable amount shall be determined in accordance with the 
     following table:

``If the percentage of reduction in lighting power density is not less 
  than:                 The amount of the deduction per square foot is:
  20 percent.....................................................$0.30 
  25 percent.....................................................$0.44 
  30 percent.....................................................$0.58 
  35 percent.....................................................$0.72 
  40 percent.....................................................$0.86 

[[Page 8380]]

  45 percent.....................................................$1.00.
       ``(C) No qualified lighting controls.--For purposes of 
     paragraph (1)(C), the applicable amount shall be determined 
     in accordance with the following table:

``If the percentage of reduction in lighting power density is not less 
  than:                 The amount of the deduction per square foot is:
  25 percent.....................................................$0.30 
  30 percent.....................................................$0.44 
  35 percent.....................................................$0.58 
  40 percent.....................................................$0.72 
  45 percent.....................................................$0.86 
  50 percent.....................................................$1.00.
       ``(4) Definitions.--For purposes of this subsection:
       ``(A) Bi-level control.--
       ``(i) In general.--Subject to clause (ii), the term `bi-
     level control' means a lighting control strategy that 
     provides for 2 different levels of lighting.
       ``(ii) Full-off setting.--For purposes of clause (i), a bi-
     level control shall also provide for a full-off setting.
       ``(B) Continuous dimming.--The term `continuous dimming' 
     means a lighting control strategy that adjusts the light 
     output of a lighting system between minimum and maximum light 
     output in a manner that is not perceptible.
       ``(C) Daylight dimming; sufficient daylight.--
       ``(i) Daylight dimming.--The term `daylight dimming' means 
     any device that--

       ``(I) adjusts electric lighting power in response to the 
     amount of daylight that is present in an area, and
       ``(II) provides for separate control of the lamps for 
     general lighting in the daylight area by not less than 1 
     multi-level photocontrol, including continuous dimming 
     devices, that satisfies the following requirements:

       ``(aa) The light sensor for the multi-level photocontrol is 
     remote from where calibration adjustments are made.
       ``(bb) The calibration adjustments are readily accessible.
       ``(cc) The multi-level photocontrol reduces electric 
     lighting power in response to the amount of daylight with--
       ``(AA) not less than 1 control step that is between 50 
     percent and 70 percent of design lighting power, and
       ``(BB) not less than 1 control step that is not less than 
     35 percent of design lighting power.
       ``(ii) Sufficient daylight.--

       ``(I) In general.--The term `sufficient daylight' means--

       ``(aa) in the case of toplighted areas, when the total 
     daylight area under skylights plus the total daylight area 
     under rooftop monitors in an enclosed space is greater than 
     900 square feet (as defined in Standard 90.1-2010), and
       ``(bb) in the case of sidelighted areas, when the combined 
     primary sidelight area in an enclosed space is not less than 
     250 square feet (as defined in Standard 90.1-2010).

       ``(II) Exceptions.--Sufficient daylight shall be deemed to 
     not be available if--

       ``(aa) in the case of areas described in subclause 
     (I)(aa)--
       ``(AA) for daylighted areas under skylights, it is 
     documented that existing adjacent structures or natural 
     objects block direct beam sunlight for more than 1500 daytime 
     hours (after 8 a.m. and before 4 p.m., local time) per year,
       ``(BB) for daylighted areas, the skylight effective 
     aperture is less than 0.006, or
       ``(CC) for buildings in climate zone 8, as defined under 
     Standard 90.1-2010, the daylight areas total less than 1500 
     square feet in an enclosed space, and
       ``(bb) in the case of primary sidelighted areas described 
     in subclause (I)(bb)--
       ``(AA) the top of the existing adjacent structures are at 
     least twice as high above the windows as the distance from 
     the window, or
       ``(BB) the sidelighting effective aperture is less than 
     0.1.
       ``(iii) Daylight, sidelighting, and other related terms.--
     The terms `daylight area', `daylight area under skylights', 
     `daylight area under rooftop monitors', `daylighted area', 
     `enclosed space', `primary sidelighted areas', `sidelighting 
     effective aperture', and `skylight effective aperture' have 
     the same meaning given such terms under Standard 90.1-2010.
       ``(D) Demand responsive control.--
       ``(i) In general.--The term `demand responsive control' 
     means a control device that receives and automatically 
     responds to a demand response signal and--

       ``(I) in the case of space-conditioning systems, conducts a 
     centralized demand shed for non-critical zones during a 
     demand response period and that has the capability to, on a 
     signal from a centralized contract or software point within 
     an Energy Management Control System--

       ``(aa) remotely increase the operating cooling temperature 
     set points in such zones by not less than 4 degrees,
       ``(bb) remotely decrease the operating heating temperature 
     set points in such zones by not less than 4 degrees,
       ``(cc) remotely reset temperatures in such zones to 
     originating operating levels, and
       ``(dd) provide an adjustable rate of change for any 
     temperature adjustment and reset, and

       ``(II) in the case of lighting power, has the capability to 
     reduce lighting power by not less than 30 percent during a 
     demand response period.

       ``(ii) Demand response period.--The term `demand response 
     period' means a period in which short-term adjustments in 
     electricity usage are made by end-use customers from normal 
     electricity consumption patterns, including adjustments in 
     response to--

       ``(I) the price of electricity, and
       ``(II) participation in programs or services that are 
     designed to modify electricity usage in response to wholesale 
     market prices for electricity or when reliability of the 
     electrical system is in jeopardy.

       ``(iii) Demand response signal.--The term `demand response 
     signal' means a signal sent to an end-use customer by a local 
     utility, independent system operator, or designated 
     curtailment service provider or aggregator that--

       ``(I) indicates an adjustment in the price of electricity, 
     or
       ``(II) is a request to modify electricity consumption.

       ``(E) Lamp.--The term `lamp' means an artificial light 
     source that produces optical radiation (including ultraviolet 
     and infrared radiation).
       ``(F) Lumen maintenance control.--The term `lumen 
     maintenance control' means a lighting control strategy that 
     maintains constant light output by adjusting lamp power to 
     compensate for age and cleanliness of luminaires.
       ``(G) Luminaire.--The term `luminaire' means a complete 
     lighting unit for the production, control, and distribution 
     of light that consists of--
       ``(i) not less than 1 lamp, and
       ``(ii) any of the following items:

       ``(I) Optical control devices designed to distribute light.
       ``(II) Sockets or mountings for the positioning, 
     protection, and operation of the lamps.
       ``(III) Mechanical components for support or attachment.
       ``(IV) Electrical and electronic components for operation 
     and control of the lamps.

       ``(H) Multi-scene control.--The term `multi-scene control' 
     means a lighting control device or system that allows for--
       ``(i) not less than 2 predetermined lighting settings,
       ``(ii) a setting that turns off all luminaires in an area, 
     and
       ``(iii) a recall of the settings described in clauses (i) 
     and (ii) for any luminaires or groups of luminaires to adjust 
     to multiple activities within the area.
       ``(I) Occupancy sensor.--The term `occupancy sensor' means 
     a control device that--
       ``(i) detects the presence or absence of individuals within 
     an area and regulates lighting, equipment, or appliances 
     according to a required sequence of operation,
       ``(ii) shuts off lighting when an area is unoccupied,
       ``(iii) except in areas designated as emergency egress and 
     using less than 0.2 watts per square foot of floor area, 
     provides for manual shut-off of all luminaires regardless of 
     the status of the sensor and allows for--

       ``(I) independent control in each area enclosed by ceiling-
     height partitions,
       ``(II) controls that are readily accessible, and
       ``(III) operation by a manual switch that is located in the 
     same area as the lighting that is subject to the control 
     device.

       ``(J) Standard 90.1-2010.--The term `Standard 90.1-2010' 
     means Standard 90.1-2010 of the American Society of Heating, 
     Refrigerating, and Air Conditioning Engineers and the 
     Illuminating Engineering Society of North America.
       ``(K) Step dimming.--The term `step dimming' means a 
     lighting control strategy that adjusts the light output of a 
     lighting system by 1 or more predetermined amounts of greater 
     than 1 percent of full output in a manner that may be 
     perceptible.
       ``(L) Time scheduling control.--The term `time scheduling 
     control' means a control strategy that automatically controls 
     lighting, equipment, or systems based on a particular time of 
     day or other daily event (including sunrise and sunset).''.
       (h) Updated Standards.--
       (1) Initial update.--
       (A) In general.--Section 179D(c) is amended by striking 
     ``90.1-2001'' each place it appears and inserting ``90.1-
     2004''.
       (B) Conforming amendment.--Paragraph (2) of section 179D(c) 
     is amended by striking ``(as in effect on April 2, 2003)''.
       (2) Second update.--
       (A) In general.--Section 179D is amended by striking 
     ``90.1-2004'' each place it appears in subsections (c) and 
     (f) and inserting ``90.1-2007''.
       (B) Effective date.--The amendments made by subparagraph 
     (A) shall apply to property placed in service after December 
     31, 2014.
       (i) Treatment of Lighting Systems.--Section 179D(c)(1) is 
     amended by striking ``interior'' each place it appears.
       (j) Reporting Program.--Section 179D, as amended by 
     subsection (c)(1), is amended by

[[Page 8381]]

     redesignating subsection (i) as subsection (j) and by 
     inserting after subsection (h) the following new subsection:
       ``(i) Reporting Program.--For purposes of the report 
     required under section 179F(l), the Secretary, in 
     consultation with the Secretary of Energy, shall--
       ``(1) develop a program to collect a statistically valid 
     sample of energy consumption data from taxpayers that 
     received full deductions under this section, regardless of 
     whether such taxpayers allocated all or a portion of such 
     deduction, and
       ``(2) include such data in the report, with such redactions 
     as deemed necessary to protect the personally identifiable 
     information of such taxpayers.''.
       (k) Special Rule for Partnerships and S Corporations.--
     Section 179D, as amended by subsection (j), is amended by 
     redesignating subsection (j) as subsection (k) and by 
     inserting after subsection (i) the following new subsection:
       ``(j) Special Rule for Partnerships and S Corporations.--In 
     the case of a partnership or S corporation, this section 
     shall be applied at the partner or shareholder level, subject 
     to such reporting requirements as are determined appropriate 
     by the Secretary.''.
       (l) Deduction for Retrofits of Existing Commercial and 
     Multifamily Buildings.--
       (1) In general.--Part VI of subchapter B of chapter 1 of 
     the Internal Revenue Code of 1986 is amended by inserting 
     after section 179E the following new section:

     ``SEC. 179F. DEDUCTION FOR RETROFITS OF EXISTING COMMERCIAL 
                   AND MULTIFAMILY BUILDINGS.

       ``(a) Allowance of Deduction.--
       ``(1) In general.--With respect to each certified retrofit 
     plan, there shall be allowed as a deduction an amount equal 
     to the lesser of--
       ``(A) the sum of--
       ``(i) the design deduction, and
       ``(ii) the realized deduction, or
       ``(B) the total cost to develop and implement such 
     certified retrofit plan.
       ``(2) Exception.--For purposes of the amount described in 
     paragraph (1)(B), if such amount is taken as a design 
     deduction, no realized deduction shall be allowed.
       ``(b) Deduction Amounts.--For purposes of this section--
       ``(1) Design deduction.--A design deduction shall be--
       ``(A) based on projected source energy savings as 
     calculated in accordance with subsection (c)(3)(B),
       ``(B) correlated to the percent of source energy savings 
     set forth in the general scale in paragraph (3)(A) that a 
     certified retrofit plan is projected to achieve when energy-
     efficient measures are placed in service, and
       ``(C) equal to 60 percent of the amount allowed under the 
     general scale.
       ``(2) Realized deduction.--
       ``(A) In general.--A realized deduction shall be--
       ``(i) based on realized source energy savings as calculated 
     in accordance with subsection (c)(3)(C),
       ``(ii) correlated to the percent of source energy savings 
     set forth in the general scale in paragraph (3)(A) as 
     realized by a certified retrofit plan, and
       ``(iii) equal to 40 percent of the amount allowed under the 
     general scale.
       ``(B) Adjustment of source energy savings.--The percent of 
     source energy savings for purposes of any realized deduction 
     may vary from such savings projected when energy-efficient 
     measures were placed in service for purposes of a design 
     deduction under paragraph (1).
       ``(C) No recapture of design deduction.--Notwithstanding 
     the regulations prescribed under subsection (f), no recapture 
     of a design deduction shall be required where the owner of 
     the commercial or multifamily building--
       ``(i) claims or allocates a design deduction when energy-
     efficient measures are placed into service pursuant to the 
     terms and conditions of a certified retrofit plan, and
       ``(ii) is not eligible for or does not subsequently claim 
     or allocate a realized deduction.
       ``(3) General scale.--
       ``(A) In general.--The scale for deductions allowed under 
     this section shall be--
       ``(i) $1.00 per square foot of retrofit floor area for 20 
     to 24 percent source energy savings,
       ``(ii) $1.50 per square foot of retrofit floor area for 25 
     to 29 percent source energy savings,
       ``(iii) $2.00 per square foot of retrofit floor area for 30 
     to 34 percent source energy savings,
       ``(iv) $2.50 per square foot of retrofit floor area for 35 
     to 39 percent source energy savings,
       ``(v) $3.00 per square foot of retrofit floor area for 40 
     to 44 percent source energy savings,
       ``(vi) $3.50 per square foot of retrofit floor area for 45 
     to 49 percent source energy savings, and
       ``(vii) $4.00 per square foot of retrofit floor area for 50 
     percent or more source energy savings.
       ``(B) Historic buildings.--
       ``(i) In general.--With respect to energy-efficient 
     measures placed in service as part of a certified retrofit 
     plan in a commercial building or multifamily building on or 
     eligible for the National Register of Historic Places, the 
     respective dollar amounts set forth in the general scale 
     under subparagraph (A) shall--

       ``(I) each be increased by 20 percent, for the purposes of 
     calculating any applicable design deduction and realized 
     deduction, and
       ``(II) not exceed the total cost to develop and implement 
     such certified retrofit plan.

       ``(ii) Exception.--If the amount described in clause 
     (i)(II) is taken as a design deduction, then no realized 
     deduction shall be allowed.
       ``(c) Calculation of Energy Savings.--
       ``(1) In general.--For purposes of the design deduction and 
     the realized deduction, source energy savings shall be 
     calculated with reference to a baseline of the annual source 
     energy consumption of the commercial or multifamily building 
     before energy-efficient measures were placed in service.
       ``(2) Baseline benchmark.--The baseline under paragraph (1) 
     shall be determined using a building energy performance 
     benchmarking tool designated by the Administrator of the 
     Environmental Protection Agency, and based upon 1 year of 
     source energy consumption data prior to the date upon which 
     the energy-efficient measures are placed in service.
       ``(3) Design and realized source energy savings.--
       ``(A) In general.--In certifying a retrofit plan as a 
     certified retrofit plan, a licensed engineer or architect 
     shall calculate source energy savings by utilizing the 
     baseline benchmark defined in paragraph (2) and determining 
     percent improvements from such baseline.
       ``(B) Design deduction.--For purposes of claiming a design 
     deduction, the regulations issued under subsection (f)(1) 
     shall prescribe the standards and process for a licensed 
     engineer or architect to calculate and certify source energy 
     savings projected from the design of a certified retrofit 
     plan as of the date energy-efficient measures are placed in 
     service.
       ``(C) Realized deduction.--For purposes of claiming a 
     realized deduction, a licensed engineer or architect shall 
     calculate and certify source energy savings realized by a 
     certified retrofit plan 2 years after a design deduction is 
     allowed by utilizing energy consumption data after energy-
     efficient measures are placed in service, and adjusting for 
     climate, building occupancy hours, density, or other factors 
     deemed appropriate in the benchmarking tool designated under 
     paragraph (2).
       ``(d) Certified Retrofit Plan and Other Definitions.--For 
     purposes of this section--
       ``(1) Certified retrofit plan.--The term `certified 
     retrofit plan' means a plan that--
       ``(A) is designed to reduce the annual source energy costs 
     of a commercial building, or a multifamily building, through 
     the installation of energy-efficient measures,
       ``(B) is certified under penalty of perjury by a licensed 
     engineer or architect, who is not a direct employee of the 
     owner of the commercial building or multifamily building that 
     is the subject of the plan, and is licensed in the State in 
     which such building is located,
       ``(C) describes the square footage of retrofit floor area 
     covered by such a plan,
       ``(D) specifies that it is designed to achieve a final 
     source energy usage intensity after energy-efficient measures 
     are placed in service in a commercial building or a 
     multifamily building that does not exceed on a square foot 
     basis the average level of energy usage intensity of other 
     similar buildings, as described in paragraph (2),
       ``(E) requires that after the energy-efficient measures are 
     placed in service, the commercial building or multifamily 
     building meets the applicable State and local building code 
     requirements for the area in which such building is located,
       ``(F) satisfies the regulations prescribed under subsection 
     (f), and
       ``(G) is submitted to the Secretary of Energy after energy-
     efficient measures are placed in service, for the purpose of 
     informing the report to Congress required by subsection (l).
       ``(2) Average level of energy usage intensity.--
       ``(A) In general.--The maximum average level of energy 
     usage intensity under paragraph (1)(D) shall not exceed 
     300,000 British thermal units per square foot.
       ``(B) Regulations.--
       ``(i) In general.--The Secretary, in consultation with the 
     Administrator of the Environmental Protection Agency, shall 
     develop distinct standards for categories and subcategories 
     of buildings with respect to maximum average level of energy 
     usage intensity based on the best available information used 
     by the ENERGY STAR program.
       ``(ii) Review.--The standards developed pursuant to clause 
     (i) shall be reviewed and updated by the Secretary, in 
     consultation with the Administrator of the Environmental 
     Protection Agency, not later than every 3 years.
       ``(3) Commercial building.--
       ``(A) In general.--The term `commercial building' means a 
     building located in the United States--
       ``(i) that is in existence and occupied on the date of the 
     enactment of this section,

[[Page 8382]]

       ``(ii) for which a certificate of occupancy has been issued 
     at least 10 years before energy efficiency measures are 
     placed in service, and
       ``(iii) with a primary use or purpose other than as 
     residential housing.
       ``(B) Shopping centers.--In the case of a retail shopping 
     center, the term `commercial building' shall include an area 
     within such building that is--
       ``(i) 50,000 square feet or larger that is covered by a 
     separate utility grade meter to record energy consumption in 
     such area, and
       ``(ii) under the day-to-day management and operation of--

       ``(I) the owner of such building as common space areas, or
       ``(II) a retail tenant, lessee, or other occupant.

       ``(4) Energy-efficient measures.--The term `energy-
     efficient measures' means a measure, or combination of 
     measures, placed in service through a certified retrofit 
     plan--
       ``(A) on or in a commercial building or multifamily 
     building,
       ``(B) as part of--
       ``(i) the lighting systems,
       ``(ii) the heating, cooling, ventilation, refrigeration, or 
     hot water systems,
       ``(iii) building transportation systems, such as elevators 
     and escalators,
       ``(iv) the building envelope, which may include an energy-
     efficient cool roof,
       ``(v) a continuous commissioning contract under the 
     supervision of a licensed engineer or architect, or
       ``(vi) building operations or monitoring systems, including 
     utility-grade meters and submeters, and
       ``(C) including equipment, materials, and systems within 
     subparagraph (B) with respect to which depreciation (or 
     amortization in lieu of depreciation) is allowed.
       ``(5) Energy savings.--The term `energy savings' means 
     source energy usage intensity reduced on a per square foot 
     basis through design and implementation of a certified 
     retrofit plan.
       ``(6) Multifamily building.--The term `multifamily 
     building'--
       ``(A) means--
       ``(i) a structure of 5 or more dwelling units located in 
     the United States--

       ``(I) that is in existence and occupied on the date of the 
     enactment of this section,
       ``(II) for which a certificate of occupancy has been issued 
     at least 10 years before energy efficiency measures are 
     placed in service, and
       ``(III) with a primary use as residential housing, and

       ``(B) includes such buildings owned and operated as a 
     condominium, cooperative, or other common interest community.
       ``(7) Source energy.--The term `source energy' means the 
     total amount of raw fuel that is required to operate a 
     commercial building or multifamily building, and accounts for 
     losses that are incurred in the generation, storage, 
     transport, and delivery of fuel to such a building.
       ``(e) Timing of Claiming Deductions.--Deductions allowed 
     under this section may be claimed as follows:
       ``(1) Design deduction.--In the case of a design deduction, 
     in the taxable year that energy efficiency measures are 
     placed in service.
       ``(2) Realized deduction.--In the case of a realized 
     deduction, in the second taxable year following the taxable 
     year described in paragraph (1).
       ``(f) Regulations.--
       ``(1) In general.--Not later than 180 days after the date 
     of the enactment of this section, and after notice and 
     opportunity for public comment, the Secretary, in 
     consultation with the Secretary of Energy and the 
     Administrator of the Environmental Protection Agency, shall 
     prescribe regulations--
       ``(A) for the manner and method for a licensed engineer or 
     architect to certify retrofit plans, model projected energy 
     savings, and calculate realized energy savings, and
       ``(B) notwithstanding subsection (b)(2)(C), to provide, as 
     appropriate, for a recapture of the deductions allowed under 
     this section if a retrofit plan is not fully implemented, or 
     a retrofit plan and energy savings are not certified or 
     verified in accordance with regulations prescribed under this 
     subsection.
       ``(2) Reliance on established protocols, etc.--To the 
     maximum extent practicable and available, such regulations 
     shall rely upon established protocols and documents used in 
     the ENERGY STAR program, and industry best practices and 
     existing guidelines, such as the Building Energy Modeling 
     Guidelines of the Commercial Energy Services Network 
     (COMNET).
       ``(3) Allowance of deductions pending issuance of 
     regulations.--Pending issuance of the regulations under 
     paragraph (1), the owner of a commercial building or a 
     multifamily building shall be allowed to claim or allocate a 
     deduction allowed under this section.
       ``(g) Notice to Owner.--Each certification of a retrofit 
     plan and calculation of energy savings required under this 
     section shall include an explanation to the owner of a 
     commercial building or a multifamily building regarding the 
     energy-efficient measures placed in service and their 
     projected and realized annual energy costs.
       ``(h) Allocation of Deduction.--
       ``(1) In general.--Not later than 180 days after the date 
     of the enactment of this section, the Secretary, in 
     consultation with the Secretary of Energy, shall promulgate a 
     regulation to allow the owner of a commercial building or a 
     multifamily building, including a government, tribal, or non-
     profit owner, to allocate any deduction allowed under this 
     section, or a portion thereof, to the person primarily 
     responsible for funding, financing, designing, leasing, 
     operating, or placing in service energy-efficient measures. 
     Such person shall be treated as the taxpayer for purposes of 
     this section and shall include a building tenant, financier, 
     architect, professional engineer, licensed contractor, energy 
     services company, or other building professional.
       ``(2) Form of allocation.--An allocation made under this 
     paragraph shall be in writing and in a form that meets the 
     form of allocation requirements in Notice 2008-40 of the 
     Internal Revenue Service.
       ``(3) Provision of allocation.--Not later than 30 days 
     after receipt of a written request from a person eligible to 
     receive an allocation under this paragraph, the owner of a 
     building that makes an allocation under this paragraph shall 
     provide the form of allocation (as described in paragraph 
     (2)) to such person.
       ``(4) Allocation from public owner of building.--In the 
     case of a commercial building or a multifamily building that 
     is owned by a Federal, State, or local government or a 
     subdivision thereof, Notice 2006-52 of the Internal Revenue 
     Service, as amplified by Notice 2008-40, shall apply to any 
     allocation.
       ``(i) Basis Reduction.--For purposes of this subtitle, if a 
     deduction is allowed under this section with respect to any 
     energy-efficient measures placed in service under a certified 
     retrofit plan other than in a qualified low-income building 
     (within the meaning of section 42), the basis of such 
     measures shall be reduced by the amount of the deduction so 
     allowed or so allocated.
       ``(j) Special Rule for Partnerships and S Corporations.--In 
     the case of a partnership or S corporation, this section 
     shall be applied at the partner or shareholder level, subject 
     to such reporting requirements as are determined appropriate 
     by the Secretary.
       ``(k) Tax Incentives Not Available.--
       ``(1) Energy efficient commercial buildings deduction.--
     Energy-efficient measures for which a deduction is allowed 
     under this section shall not be eligible for a deduction 
     under section 179D.
       ``(2) New energy efficient home credit.--No deduction shall 
     be allowed under this section with respect to any building or 
     dwelling unit with respect to which a credit under section 
     45L was allowed.
       ``(l) Report to Congress.--
       ``(1) In general.--Biennially, beginning with the first 
     year after the enactment of this section, the Secretary, in 
     conjunction with the Secretary of Energy, shall submit a 
     report to Congress that--
       ``(A) explains the energy saved, the energy-efficient 
     measures implemented, the realization of energy savings 
     projected, and records the amounts and types of deductions 
     allowed under this section,
       ``(B) explains the energy saved, the energy efficient 
     measures implemented, and records the amount of deductions 
     allowed under section 179D, based on the data collected 
     pursuant to subsection (i) of such section,
       ``(C) determines the number of jobs created as a result of 
     the deduction allowed under this section,
       ``(D) determines how the use of any deduction allowed under 
     this section may be improved, based on the information 
     provided to the Secretary of Energy,
       ``(E) provides aggregated data with respect to the 
     information described in subparagraphs (A) through (D), and
       ``(F) provides statutory recommendations to Congress that 
     would reduce energy consumption in new and existing 
     commercial buildings located in the United States, including 
     recommendations on providing energy-efficient tax incentives 
     for subsections of buildings that operate with specific 
     utility-grade metering.
       ``(2) Protection of taxpayer information.--The Secretary 
     and the Secretary of Energy shall share information on 
     deductions allowed under this section and related reports 
     submitted, as requested by each agency to fulfill its 
     obligations under this section, with such redactions as 
     deemed necessary to protect the personally identifiable 
     financial information of a taxpayer.
       ``(3) Incorporation into department of energy programs.--
     The Secretary of Energy shall, to the maximum extent 
     practicable, incorporate conclusions of the report under this 
     subsection into current Department of Energy building 
     performance and energy efficiency data collection and other 
     reporting programs.
       ``(m) Termination.--This section shall not apply to any 
     property placed in service after December 31, 2015.''.
       (2) Effect on depreciation on earnings and profits.--
     Subparagraph (B) of section 312(k)(3), as amended by this 
     title, is amended--
       (A) by striking ``or 179E'' both places it appears in 
     clause (i) and inserting ``179E, or 179F'',
       (B) by striking ``or 179e'' in the heading and inserting 
     ``179e, or 179f'', and

[[Page 8383]]

       (C) by inserting ``or 179F'' after ``section 179D'' in 
     clause (ii)(I).
       (3) Conforming amendment.--The table of sections for part 
     VI of subchapter B of chapter 1 is amended by inserting after 
     the item relating to section 179E the following new item:

``Sec. 179F. Deduction for retrofits of existing commercial and 
              multifamily buildings.''.
       (m) Effective Date.--Except as otherwise provided, the 
     amendments made by this section shall apply to property 
     placed in service in taxable years beginning after the date 
     of the enactment of this Act.
                                 ______
                                 
  SA 3186. Mr. CARDIN submitted an amendment intended to be proposed by 
him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the end, add the following:

                        TITLE--OTHER PROVISIONS

     SEC. _01. DEPRECIATION RECOVERY PERIOD FOR CERTAIN ROOF 
                   SYSTEMS.

       (a) 20-Year Recovery Period.--
       (1) In general.--Subparagraph (F) of section 168(e)(3) is 
     amended to read as follows:
       ``(F) 20-year property.--The term `20-year property' 
     means--
       ``(i) initial clearing and grading land improvements with 
     respect to any electric utility transmission and distribution 
     plant, and
       ``(ii) any qualified energy-efficient cool roof replacement 
     property.''.
       (2) Qualified energy-efficient cool roof replacement 
     property.--Section 168(e) is amended by adding at the end the 
     following new paragraph:
       ``(9) Qualified energy-efficient cool roof replacement 
     property.--
       ``(A) In general.--The term `qualified energy-efficient 
     cool roof replacement property' means any roof system--
       ``(i) which is placed in service above conditioned or semi-
     heated space on an eligible commercial building,
       ``(ii) which has a slope equal to or less than 2:12,
       ``(iii) which replaces an existing roof system, and
       ``(iv) which includes--

       ``(I) insulation which meets or exceeds the minimum 
     prescriptive requirements in tables A-1 to A-9 in the 
     Normative Appendix A of ASHRAE Standard 189.1-2011, and
       ``(II) in the case of an eligible commercial building 
     located in a climate zone other than climate zone 6, 7, or 8 
     (as specified in ASHRAE Standard 189.1-2011), a primary roof 
     covering which has a cool roof surface.

       ``(B) Cool roof surface.--The term `cool roof surface' 
     means a roof the exterior surface of which--
       ``(i) has a 3-year-aged solar reflectance of at least 0.55 
     and a 3-year-aged thermal emittance of at least 0.75, as 
     determined in accordance with the Cool Roof Rating Council 
     CRRC-1 Product Rating Program, or
       ``(ii) has a 3-year-aged solar reflectance index (SRI) of 
     at least 64, as determined in accordance with ASTM Standard 
     E1980, determined--

       ``(I) using a medium-wind-speed convection coefficient of 
     12 W/m2.K, and
       ``(II) using the values for 3-year-aged solar reflectance 
     and 3-year-aged thermal emittance determined in accordance 
     with the Cool Roof Rating Council CRRC-1 Product Rating 
     Program.

       ``(C) Roof system.--The term `roof system' means a system 
     of roof components, including roof insulation and a membrane 
     or primary roof covering, but not including the roof deck, 
     designed to weather-proof and improve the thermal resistance 
     of a building.
       ``(D) Eligible commercial building.--The term `eligible 
     commercial building' means any building--
       ``(i) which is within the scope of ASHRAE Standard 90.1-
     2010,
       ``(ii) which is located in the United States,
       ``(iii) with respect to which depreciation (or amortization 
     in lieu of depreciation) is allowable, and
       ``(iv) which was placed in service prior to December 31, 
     2009.
       ``(E) ASHRAE.--The term `ASHRAE' means the American Society 
     of Heating, Refrigerating and Air-Conditioning Engineers.''.
       (b) Requirement To Use Straight Line Method.--Paragraph (3) 
     of section 168(b) is amended by adding at the end the 
     following new subparagraph:
       ``(J) Any qualified energy-efficient cool roof replacement 
     property.''.
       (c) Alternative System.--The table contained in section 
     168(g)(3)(B) is amended by striking the last item and 
     inserting the following new items:

  ``(F)(i).......................................................... 25
   (F)(ii)......................................................27.5''.

       (d) Depreciation Rules for Certain Qualified Energy-
     efficient Cool Roof Replacement Property for Purposes of 
     Computing the Earnings and Profits of a Real Estate 
     Investment Trust.--
       (1) In general.--Paragraph (3) of section 312(k) is amended 
     by adding at the end the following new subparagraph:
       ``(C) Treatment of qualified energy-efficient cool roof 
     replacement property.--In the case of any qualified energy-
     efficient cool roof replacement property (within the meaning 
     of section 168(e)(9)), the adjustment for depreciation to 
     earnings and profits of a real estate investment trust for 
     any taxable year shall be determined under the alternative 
     depreciation method (within the meaning of section 
     168(g)(2)), except that the recovery period shall be 20 
     years.''.
       (2) Conforming amendment.--Subparagraph (A) of section 
     312(k)(3) is amended by striking ``subparagraph (B),'' and 
     inserting ``subparagraphs (B) and (C),''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act.
                                 ______
                                 
  SA 3187. Mr. CARDIN (for himself, Mr. Schatz, and Mrs. Feinstein) 
submitted an amendment intended to be proposed to amendment SA 3060 
proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal 
Revenue Code of 1986 to allow employers to exempt employees with health 
coverage under TRICARE or the Veterans Administration from being taken 
into account for purposes of the employer mandate under the Patient 
Protection and Affordable Care Act; which was ordered to lie on the 
table; as follows:

       Beginning on page 47, strike line 10 through page 50, line 
     9.
       Beginning on page 53, strike line 13 through page 55, line 
     17.
       At the appropriate place, insert the following:

             TITLE __--ENERGY EFFICIENCY TAX INCENTIVES ACT

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``Energy Efficiency Tax 
     Incentives Act''.

             Subtitle A--Commercial Building Modernization

     SEC. _11. EXTENSION AND MODIFICATION OF DEDUCTION FOR ENERGY-
                   EFFICIENT COMMERCIAL BUILDINGS.

       (a) Extension.--
       (1) Through 2016.--Section 179D(h) is amended by striking 
     ``December 31, 2013'' and inserting ``December 31, 2016''.
       (2) Inclusion of multifamily buildings.--
       (A) In general.--Subparagraph (B) of section 179D(c)(1) is 
     amended by striking ``building'' and inserting ``commercial 
     building or multifamily building''.
       (B) Definitions.--Subsection (c) of section 179D is amended 
     by adding at the end the following new paragraphs:
       ``(3) Commercial building.--The term `commercial building' 
     means a building with a primary use or purpose other than as 
     residential housing.
       ``(4) Multifamily building.--The term `multifamily 
     building' means a structure of 5 or more dwelling units with 
     a primary use as residential housing, and includes such 
     buildings owned and operated as a condominium, cooperative, 
     or other common interest community.''.
       (b) Increase in Maximum Amount of Deduction.--
       (1) In general.--Subparagraph (A) of section 179D(b)(1) is 
     amended by striking ``$1.80'' and inserting ``$3.00''.
       (2) Partial allowance.--Paragraph (1) of section 179D(d) is 
     amended to read as follows:
       ``(1) Partial allowance.--
       ``(A) In general.--Except as provided in subsection (f), 
     if--
       ``(i) the requirement of subsection (c)(1)(D) is not met, 
     but
       ``(ii) there is a certification in accordance with 
     paragraph (6) that--

       ``(I) any system referred to in subsection (c)(1)(C) 
     satisfies the energy-savings targets established by the 
     Secretary under subparagraph (B) with respect to such system, 
     or
       ``(II) the systems referred to in subsection (c)(1)(C)(ii) 
     and subsection (c)(1)(C)(iii) together satisfy the energy-
     savings targets established by the Secretary under 
     subparagraph (B) with respect to such systems,

     then the requirement of subsection (c)(1)(D) shall be treated 
     as met with respect to such system or systems, and the 
     deduction under subsection (a) shall be allowed with respect 
     to energy-efficient commercial building property installed as 
     part of such system and as part of a plan to meet such 
     targets, except that subsection (b) shall be applied to such 
     property described in clause (ii)(I) by substituting `$1.00' 
     for `$3.00' and to such property described in clause (ii)(II) 
     by substituting `$2.20' for `$3.00'.
       ``(B) Regulations.--
       ``(i) In general.--The Secretary, after consultation with 
     the Secretary of Energy, shall promulgate regulations 
     establishing a target for each system described in subsection 
     (c)(1)(C) which, if such targets were met for all such 
     systems, the property would meet the requirements of 
     subsection (c)(1)(D).
       ``(ii) Safe harbor for combined systems.--The Secretary, 
     after consultation with the Secretary of Energy, and not 
     later

[[Page 8384]]

     than 6 months after the date of the enactment of the Energy 
     Efficiency Tax Incentives Act, shall promulgate regulations 
     regarding combined envelope and mechanical system performance 
     that detail appropriate components, efficiency levels, or 
     other relevant information for the systems referred to in 
     subsection (c)(1)(C)(ii) and subsection (c)(1)(C)(iii) 
     together to be deemed to have achieved two-thirds of the 
     requirements of subsection (c)(1)(D).''.
       (c) Denial of Double Benefit Rules.--
       (1) In general.--Section 179D is amended by redesignating 
     subsection (h) as subsection (i) and by inserting after 
     subsection (g) the following new subsection:
       ``(h) Tax Incentives Not Available.--Energy-efficient 
     measures for which a deduction is allowed under this section 
     shall not be eligible for a deduction under section 179F.''.
       (2) Low-income housing exception to basis reduction.--
     Subsection (e) of section 179D is amended by inserting 
     ``(other than property placed in service in a qualified low-
     income building (within the meaning of section 42))'' after 
     ``building property''.
       (d) Allocation of Deduction.--Paragraph (4) of section 
     179D(d) is amended to read as follows:
       ``(4) Allocation of deduction.--
       ``(A) In general.--Not later than 180 days after the date 
     of the enactment of this subsection, the Secretary, in 
     consultation with the Secretary of Energy, shall promulgate a 
     regulation to allow the owner of a commercial or multifamily 
     building, including a government, tribal, or non-profit 
     owner, to allocate any deduction allowed under this section, 
     or a portion thereof, to the person primarily responsible for 
     designing the property in lieu of the owner or to a 
     commercial tenant that leases or otherwise occupies space in 
     such building pursuant to a written agreement. Such person 
     shall be treated as the taxpayer for purposes of this 
     section.
       ``(B) Form of allocation.--An allocation made under this 
     paragraph shall be in writing and in a form that meets the 
     form of allocation requirements in Notice 2008-40 of the 
     Internal Revenue Service.
       ``(C) Provision of allocation.--Not later than 30 days 
     after receipt of a written request from a person eligible to 
     receive an allocation under this paragraph, the owner of a 
     building that makes an allocation under this paragraph shall 
     provide the form of allocation (as described in subparagraph 
     (B)) to such person.
       ``(D) Allocation from public owner of building.--In the 
     case of a commercial building or multifamily building that is 
     owned by a Federal, State, or local government or a 
     subdivision thereof, Notice 2006-52 of the Internal Revenue 
     Service, as amplified by Notice 2008-40, shall apply to any 
     allocation.''.
       (e) Treatment of Basis in Context of Allocation.--
     Subsection (e) of section 179D, as amended by subsection 
     (c)(2), is amended by inserting ``or so allocated'' after 
     ``so allowed''.
       (f) Earnings and Profits Conformity for Real Estate 
     Investment Trusts.--Subparagraph (B) of section 312(k)(3) is 
     amended--
       (1) by striking ``.--For purposes of'' and inserting ``.--
       ``(i) In general.--Except as provided in clause (ii), for 
     purposes of'', and
       (2) by adding at the end the following new clause:
       ``(ii) Earnings and profits conformity for real estate 
     investment trusts.--

       ``(I) In general.--For purposes of computing the earnings 
     and profits of a real estate investment trust (other than a 
     captive real estate investment trust), the entire amount 
     deductible under section 179D shall be allowed as deductions 
     in the taxable years for which such amounts are claimed under 
     such section.
       ``(II) Captive real estate investment trust.--The term 
     `captive real estate investment trust' means a real estate 
     investment trust the shares or beneficial interests of which 
     are not regularly traded on an established securities market 
     and more than 50 percent of the voting power or value of the 
     beneficial interests or shares of which are owned or 
     controlled, directly or indirectly, or constructively, by a 
     single entity that is treated as an association taxable as a 
     corporation under this title and is not exempt from taxation 
     pursuant to the provisions of section 501(a).
       ``(III) Rules of application.--For purposes of this clause, 
     the constructive ownership rules of section 318(a), as 
     modified by section 856(d)(5), shall apply in determining the 
     ownership of stock, assets, or net profits of any person, and 
     the following entities are not considered an association 
     taxable as a corporation:

       ``(aa) Any real estate investment trust other than a 
     captive real estate investment trust.
       ``(bb) Any qualified real estate investment trust 
     subsidiary under section 856, other than a qualified REIT 
     subsidiary of a captive real estate investment trust.
       ``(cc) Any Listed Australian Property Trust (meaning an 
     Australian unit trust registered as a `Managed Investment 
     Scheme' under the Australian Corporations Act in which the 
     principal class of units is listed on a recognized stock 
     exchange in Australia and is regularly traded on an 
     established securities market), or an entity organized as a 
     trust, provided that a Listed Australian Property Trust owns 
     or controls, directly or indirectly, 75 percent or more of 
     the voting power or value of the beneficial interests or 
     shares of such trust.
       ``(dd) Any corporation, trust, association, or partnership 
     organized outside the laws of the United States and which 
     satisfies the criteria described in subclause (IV).

       ``(IV) Criteria.--The criteria described in this subclause 
     are as follows:

       ``(aa) At least 75 percent of the entity's total asset 
     value at the close of its taxable year is represented by real 
     estate assets (as defined in section 856(c)(5)(B)), cash and 
     cash equivalents, and United States Government securities.
       ``(bb) The entity is not subject to tax on amounts 
     distributed to its beneficial owners, or is exempt from 
     entity-level taxation.
       ``(cc) The entity distributes at least 85 percent of its 
     taxable income (as computed in the jurisdiction in which it 
     is organized) to the holders of its shares or certificates of 
     beneficial interest on an annual basis.
       ``(dd) Not more than 10 percent of the voting power or 
     value in such entity is held directly or indirectly or 
     constructively by a single entity or individual, or the 
     shares or beneficial interests of such entity are regularly 
     traded on an established securities market.
       ``(ee) The entity is organized in a country which has a tax 
     treaty with the United States.''.
       (g) Rules for Lighting Systems.--Subsection (f) of section 
     179D is amended to read as follows:
       ``(f) Rules for Lighting Systems.--
       ``(1) In general.--With respect to property that is part of 
     a lighting system, the deduction allowed under subsection (a) 
     shall be equal to--
       ``(A) for a lighting system that includes installation of a 
     lighting control described in paragraph (2)(A), the 
     applicable amount determined under paragraph (3)(A),
       ``(B) for a lighting system that includes installation of a 
     lighting control described in paragraph (2)(B), the 
     applicable amount determined under paragraph (3)(B), or
       ``(C) for a lighting system that does not include 
     installation of any lighting controls described in 
     subparagraph (A) or (B) of paragraph (2), the applicable 
     amount determined under paragraph (3)(C).
       ``(2) Energy saving controls.--
       ``(A) Lighting controls in certain spaces.--For purposes of 
     paragraph (1)(A), the lighting controls described in this 
     subparagraph are the following:
       ``(i) Occupancy sensors (as described in paragraph (4)(I)) 
     in spaces not greater than 800 square feet.
       ``(ii) Bi-level controls (as described in paragraph 
     (4)(A)).
       ``(iii) Continuous or step dimming controls (as described 
     in subparagraphs (B) and (K) of paragraph (4)).
       ``(iv) Daylight dimming where sufficient daylight is 
     available (as described in paragraph (4)(C)).
       ``(v) A multi-scene controller (as described in paragraph 
     (4)(H)).
       ``(vi) Time scheduling controls (as described in paragraph 
     (4)(L)), provided that such controls are not required by 
     Standard 90.1-2010.
       ``(vii) Such other lighting controls as the Secretary, in 
     consultation with the Secretary of Energy, determines 
     appropriate.
       ``(B) Other control types.--For purposes of paragraph 
     (1)(B), the lighting controls described in this subparagraph 
     are the following:
       ``(i) Occupancy sensors (as described in paragraph (4)(I)) 
     in spaces greater than 800 square feet.
       ``(ii) Demand responsive controls (as described in 
     paragraph (4)(D)).
       ``(iii) Lumen maintenance controls (as described in 
     paragraph (4)(F)) where solid state lighting is used.
       ``(iv) Such other lighting controls as the Secretary, in 
     consultation with the Secretary of Energy, determines 
     appropriate.
       ``(3) Applicable amount.--
       ``(A) Lighting controls in certain spaces.--For purposes of 
     paragraph (1)(A), the applicable amount shall be determined 
     in accordance with the following table:

``If the percentage of reduction in lighting power density is not less 
  than:                 The amount of the deduction per square foot is:
  15 percent.....................................................$0.30 
  20 percent.....................................................$0.44 
  25 percent.....................................................$0.58 
  30 percent.....................................................$0.72 
  35 percent.....................................................$0.86 
  40 percent.....................................................$1.00.
       ``(B) Lighting controls in larger spaces and where solid 
     lighting is used.--For purposes of paragraph (1)(B), the 
     applicable amount shall be determined in accordance with the 
     following table:

``If the percentage of reduction in lighting power density is not less 
  than:                 The amount of the deduction per square foot is:
  20 percent.....................................................$0.30 
  25 percent.....................................................$0.44 
  30 percent.....................................................$0.58 
  35 percent.....................................................$0.72 
  40 percent.....................................................$0.86 

[[Page 8385]]

  45 percent.....................................................$1.00.
       ``(C) No qualified lighting controls.--For purposes of 
     paragraph (1)(C), the applicable amount shall be determined 
     in accordance with the following table:

``If the percentage of reduction in lighting power density is not less 
  than:                 The amount of the deduction per square foot is:
  25 percent.....................................................$0.30 
  30 percent.....................................................$0.44 
  35 percent.....................................................$0.58 
  40 percent.....................................................$0.72 
  45 percent.....................................................$0.86 
  50 percent.....................................................$1.00.
       ``(4) Definitions.--For purposes of this subsection:
       ``(A) Bi-level control.--
       ``(i) In general.--Subject to clause (ii), the term `bi-
     level control' means a lighting control strategy that 
     provides for 2 different levels of lighting.
       ``(ii) Full-off setting.--For purposes of clause (i), a bi-
     level control shall also provide for a full-off setting.
       ``(B) Continuous dimming.--The term `continuous dimming' 
     means a lighting control strategy that adjusts the light 
     output of a lighting system between minimum and maximum light 
     output in a manner that is not perceptible.
       ``(C) Daylight dimming; sufficient daylight.--
       ``(i) Daylight dimming.--The term `daylight dimming' means 
     any device that--

       ``(I) adjusts electric lighting power in response to the 
     amount of daylight that is present in an area, and
       ``(II) provides for separate control of the lamps for 
     general lighting in the daylight area by not less than 1 
     multi-level photocontrol, including continuous dimming 
     devices, that satisfies the following requirements:

       ``(aa) The light sensor for the multi-level photocontrol is 
     remote from where calibration adjustments are made.
       ``(bb) The calibration adjustments are readily accessible.
       ``(cc) The multi-level photocontrol reduces electric 
     lighting power in response to the amount of daylight with--
       ``(AA) not less than 1 control step that is between 50 
     percent and 70 percent of design lighting power, and
       ``(BB) not less than 1 control step that is not less than 
     35 percent of design lighting power.
       ``(ii) Sufficient daylight.--

       ``(I) In general.--The term `sufficient daylight' means--

       ``(aa) in the case of toplighted areas, when the total 
     daylight area under skylights plus the total daylight area 
     under rooftop monitors in an enclosed space is greater than 
     900 square feet (as defined in Standard 90.1-2010), and
       ``(bb) in the case of sidelighted areas, when the combined 
     primary sidelight area in an enclosed space is not less than 
     250 square feet (as defined in Standard 90.1-2010).

       ``(II) Exceptions.--Sufficient daylight shall be deemed to 
     not be available if--

       ``(aa) in the case of areas described in subclause 
     (I)(aa)--
       ``(AA) for daylighted areas under skylights, it is 
     documented that existing adjacent structures or natural 
     objects block direct beam sunlight for more than 1500 daytime 
     hours (after 8 a.m. and before 4 p.m., local time) per year,
       ``(BB) for daylighted areas, the skylight effective 
     aperture is less than 0.006, or
       ``(CC) for buildings in climate zone 8, as defined under 
     Standard 90.1-2010, the daylight areas total less than 1500 
     square feet in an enclosed space, and
       ``(bb) in the case of primary sidelighted areas described 
     in subclause (I)(bb)--
       ``(AA) the top of the existing adjacent structures are at 
     least twice as high above the windows as the distance from 
     the window, or
       ``(BB) the sidelighting effective aperture is less than 
     0.1.
       ``(iii) Daylight, sidelighting, and other related terms.--
     The terms `daylight area', `daylight area under skylights', 
     `daylight area under rooftop monitors', `daylighted area', 
     `enclosed space', `primary sidelighted areas', `sidelighting 
     effective aperture', and `skylight effective aperture' have 
     the same meaning given such terms under Standard 90.1-2010.
       ``(D) Demand responsive control.--
       ``(i) In general.--The term `demand responsive control' 
     means a control device that receives and automatically 
     responds to a demand response signal and--

       ``(I) in the case of space-conditioning systems, conducts a 
     centralized demand shed for non-critical zones during a 
     demand response period and that has the capability to, on a 
     signal from a centralized contract or software point within 
     an Energy Management Control System--

       ``(aa) remotely increase the operating cooling temperature 
     set points in such zones by not less than 4 degrees,
       ``(bb) remotely decrease the operating heating temperature 
     set points in such zones by not less than 4 degrees,
       ``(cc) remotely reset temperatures in such zones to 
     originating operating levels, and
       ``(dd) provide an adjustable rate of change for any 
     temperature adjustment and reset, and

       ``(II) in the case of lighting power, has the capability to 
     reduce lighting power by not less than 30 percent during a 
     demand response period.

       ``(ii) Demand response period.--The term `demand response 
     period' means a period in which short-term adjustments in 
     electricity usage are made by end-use customers from normal 
     electricity consumption patterns, including adjustments in 
     response to--

       ``(I) the price of electricity, and
       ``(II) participation in programs or services that are 
     designed to modify electricity usage in response to wholesale 
     market prices for electricity or when reliability of the 
     electrical system is in jeopardy.

       ``(iii) Demand response signal.--The term `demand response 
     signal' means a signal sent to an end-use customer by a local 
     utility, independent system operator, or designated 
     curtailment service provider or aggregator that--

       ``(I) indicates an adjustment in the price of electricity, 
     or
       ``(II) is a request to modify electricity consumption.

       ``(E) Lamp.--The term `lamp' means an artificial light 
     source that produces optical radiation (including ultraviolet 
     and infrared radiation).
       ``(F) Lumen maintenance control.--The term `lumen 
     maintenance control' means a lighting control strategy that 
     maintains constant light output by adjusting lamp power to 
     compensate for age and cleanliness of luminaires.
       ``(G) Luminaire.--The term `luminaire' means a complete 
     lighting unit for the production, control, and distribution 
     of light that consists of--
       ``(i) not less than 1 lamp, and
       ``(ii) any of the following items:

       ``(I) Optical control devices designed to distribute light.
       ``(II) Sockets or mountings for the positioning, 
     protection, and operation of the lamps.
       ``(III) Mechanical components for support or attachment.
       ``(IV) Electrical and electronic components for operation 
     and control of the lamps.

       ``(H) Multi-scene control.--The term `multi-scene control' 
     means a lighting control device or system that allows for--
       ``(i) not less than 2 predetermined lighting settings,
       ``(ii) a setting that turns off all luminaires in an area, 
     and
       ``(iii) a recall of the settings described in clauses (i) 
     and (ii) for any luminaires or groups of luminaires to adjust 
     to multiple activities within the area.
       ``(I) Occupancy sensor.--The term `occupancy sensor' means 
     a control device that--
       ``(i) detects the presence or absence of individuals within 
     an area and regulates lighting, equipment, or appliances 
     according to a required sequence of operation,
       ``(ii) shuts off lighting when an area is unoccupied,
       ``(iii) except in areas designated as emergency egress and 
     using less than 0.2 watts per square foot of floor area, 
     provides for manual shut-off of all luminaires regardless of 
     the status of the sensor and allows for--

       ``(I) independent control in each area enclosed by ceiling-
     height partitions,
       ``(II) controls that are readily accessible, and
       ``(III) operation by a manual switch that is located in the 
     same area as the lighting that is subject to the control 
     device.

       ``(J) Standard 90.1-2010.--The term `Standard 90.1-2010' 
     means Standard 90.1-2010 of the American Society of Heating, 
     Refrigerating, and Air Conditioning Engineers and the 
     Illuminating Engineering Society of North America.
       ``(K) Step dimming.--The term `step dimming' means a 
     lighting control strategy that adjusts the light output of a 
     lighting system by 1 or more predetermined amounts of greater 
     than 1 percent of full output in a manner that may be 
     perceptible.
       ``(L) Time scheduling control.--The term `time scheduling 
     control' means a control strategy that automatically controls 
     lighting, equipment, or systems based on a particular time of 
     day or other daily event (including sunrise and sunset).''.
       (h) Updated Standards.--
       (1) Initial update.--
       (A) In general.--Section 179D(c) is amended by striking 
     ``90.1-2001'' each place it appears and inserting ``90.1-
     2004''.
       (B) Conforming amendment.--Paragraph (2) of section 179D(c) 
     is amended by striking ``(as in effect on April 2, 2003)''.
       (2) Second update.--
       (A) In general.--Section 179D is amended by striking 
     ``90.1-2004'' each place it appears in subsections (c) and 
     (f) and inserting ``90.1-2007''.
       (B) Effective date.--The amendments made by subparagraph 
     (A) shall apply to property placed in service after December 
     31, 2014.
       (i) Treatment of Lighting Systems.--Section 179D(c)(1) is 
     amended by striking ``interior'' each place it appears.
       (j) Reporting Program.--Section 179D, as amended by 
     subsection (c)(1), is amended by

[[Page 8386]]

     redesignating subsection (i) as subsection (j) and by 
     inserting after subsection (h) the following new subsection:
       ``(i) Reporting Program.--For purposes of the report 
     required under section 179F(l), the Secretary, in 
     consultation with the Secretary of Energy, shall--
       ``(1) develop a program to collect a statistically valid 
     sample of energy consumption data from taxpayers that 
     received full deductions under this section, regardless of 
     whether such taxpayers allocated all or a portion of such 
     deduction, and
       ``(2) include such data in the report, with such redactions 
     as deemed necessary to protect the personally identifiable 
     information of such taxpayers.''.
       (k) Special Rule for Partnerships and S Corporations.--
     Section 179D, as amended by subsection (j), is amended by 
     redesignating subsection (j) as subsection (k) and by 
     inserting after subsection (i) the following new subsection:
       ``(j) Special Rule for Partnerships and S Corporations.--In 
     the case of a partnership or S corporation, this section 
     shall be applied at the partner or shareholder level, subject 
     to such reporting requirements as are determined appropriate 
     by the Secretary.''.
       (l) Effective Date.--Except as otherwise provided, the 
     amendments made by this section shall apply to property 
     placed in service in taxable years beginning after the date 
     of the enactment of this Act.

     SEC. _12. DEDUCTION FOR RETROFITS OF EXISTING COMMERCIAL AND 
                   MULTIFAMILY BUILDINGS.

       (a) In General.--Part VI of subchapter B of chapter 1 is 
     amended by inserting after section 179E the following new 
     section:

     ``SEC. 179F. DEDUCTION FOR RETROFITS OF EXISTING COMMERCIAL 
                   AND MULTIFAMILY BUILDINGS.

       ``(a) Allowance of Deduction.--
       ``(1) In general.--With respect to each certified retrofit 
     plan, there shall be allowed as a deduction an amount equal 
     to the lesser of--
       ``(A) the sum of--
       ``(i) the design deduction, and
       ``(ii) the realized deduction, or
       ``(B) the total cost to develop and implement such 
     certified retrofit plan.
       ``(2) Exception.--For purposes of the amount described in 
     paragraph (1)(B), if such amount is taken as a design 
     deduction, no realized deduction shall be allowed.
       ``(b) Deduction Amounts.--For purposes of this section--
       ``(1) Design deduction.--A design deduction shall be--
       ``(A) based on projected source energy savings as 
     calculated in accordance with subsection (c)(3)(B),
       ``(B) correlated to the percent of source energy savings 
     set forth in the general scale in paragraph (3)(A) that a 
     certified retrofit plan is projected to achieve when energy-
     efficient measures are placed in service, and
       ``(C) equal to 60 percent of the amount allowed under the 
     general scale.
       ``(2) Realized deduction.--
       ``(A) In general.--A realized deduction shall be--
       ``(i) based on realized source energy savings as calculated 
     in accordance with subsection (c)(3)(C),
       ``(ii) correlated to the percent of source energy savings 
     set forth in the general scale in paragraph (3)(A) as 
     realized by a certified retrofit plan, and
       ``(iii) equal to 40 percent of the amount allowed under the 
     general scale.
       ``(B) Adjustment of source energy savings.--The percent of 
     source energy savings for purposes of any realized deduction 
     may vary from such savings projected when energy-efficient 
     measures were placed in service for purposes of a design 
     deduction under paragraph (1).
       ``(C) No recapture of design deduction.--Notwithstanding 
     the regulations prescribed under subsection (f), no recapture 
     of a design deduction shall be required where the owner of 
     the commercial or multifamily building--
       ``(i) claims or allocates a design deduction when energy-
     efficient measures are placed into service pursuant to the 
     terms and conditions of a certified retrofit plan, and
       ``(ii) is not eligible for or does not subsequently claim 
     or allocate a realized deduction.
       ``(3) General scale.--
       ``(A) In general.--The scale for deductions allowed under 
     this section shall be--
       ``(i) $1.00 per square foot of retrofit floor area for 20 
     to 24 percent source energy savings,
       ``(ii) $1.50 per square foot of retrofit floor area for 25 
     to 29 percent source energy savings,
       ``(iii) $2.00 per square foot of retrofit floor area for 30 
     to 34 percent source energy savings,
       ``(iv) $2.50 per square foot of retrofit floor area for 35 
     to 39 percent source energy savings,
       ``(v) $3.00 per square foot of retrofit floor area for 40 
     to 44 percent source energy savings,
       ``(vi) $3.50 per square foot of retrofit floor area for 45 
     to 49 percent source energy savings, and
       ``(vii) $4.00 per square foot of retrofit floor area for 50 
     percent or more source energy savings.
       ``(B) Historic buildings.--
       ``(i) In general.--With respect to energy-efficient 
     measures placed in service as part of a certified retrofit 
     plan in a commercial building or multifamily building on or 
     eligible for the National Register of Historic Places, the 
     respective dollar amounts set forth in the general scale 
     under subparagraph (A) shall--

       ``(I) each be increased by 20 percent, for the purposes of 
     calculating any applicable design deduction and realized 
     deduction, and
       ``(II) not exceed the total cost to develop and implement 
     such certified retrofit plan.

       ``(ii) Exception.--If the amount described in clause 
     (i)(II) is taken as a design deduction, then no realized 
     deduction shall be allowed.
       ``(c) Calculation of Energy Savings.--
       ``(1) In general.--For purposes of the design deduction and 
     the realized deduction, source energy savings shall be 
     calculated with reference to a baseline of the annual source 
     energy consumption of the commercial or multifamily building 
     before energy-efficient measures were placed in service.
       ``(2) Baseline benchmark.--The baseline under paragraph (1) 
     shall be determined using a building energy performance 
     benchmarking tool designated by the Administrator of the 
     Environmental Protection Agency, and based upon 1 year of 
     source energy consumption data prior to the date upon which 
     the energy-efficient measures are placed in service.
       ``(3) Design and realized source energy savings.--
       ``(A) In general.--In certifying a retrofit plan as a 
     certified retrofit plan, a licensed engineer or architect 
     shall calculate source energy savings by utilizing the 
     baseline benchmark defined in paragraph (2) and determining 
     percent improvements from such baseline.
       ``(B) Design deduction.--For purposes of claiming a design 
     deduction, the regulations issued under subsection (f)(1) 
     shall prescribe the standards and process for a licensed 
     engineer or architect to calculate and certify source energy 
     savings projected from the design of a certified retrofit 
     plan as of the date energy-efficient measures are placed in 
     service.
       ``(C) Realized deduction.--For purposes of claiming a 
     realized deduction, a licensed engineer or architect shall 
     calculate and certify source energy savings realized by a 
     certified retrofit plan 2 years after a design deduction is 
     allowed by utilizing energy consumption data after energy-
     efficient measures are placed in service, and adjusting for 
     climate, building occupancy hours, density, or other factors 
     deemed appropriate in the benchmarking tool designated under 
     paragraph (2).
       ``(d) Certified Retrofit Plan and Other Definitions.--For 
     purposes of this section--
       ``(1) Certified retrofit plan.--The term `certified 
     retrofit plan' means a plan that--
       ``(A) is designed to reduce the annual source energy costs 
     of a commercial building, or a multifamily building, through 
     the installation of energy-efficient measures,
       ``(B) is certified under penalty of perjury by a licensed 
     engineer or architect, who is not a direct employee of the 
     owner of the commercial building or multifamily building that 
     is the subject of the plan, and is licensed in the State in 
     which such building is located,
       ``(C) describes the square footage of retrofit floor area 
     covered by such a plan,
       ``(D) specifies that it is designed to achieve a final 
     source energy usage intensity after energy-efficient measures 
     are placed in service in a commercial building or a 
     multifamily building that does not exceed on a square foot 
     basis the average level of energy usage intensity of other 
     similar buildings, as described in paragraph (2),
       ``(E) requires that after the energy-efficient measures are 
     placed in service, the commercial building or multifamily 
     building meets the applicable State and local building code 
     requirements for the area in which such building is located,
       ``(F) satisfies the regulations prescribed under subsection 
     (f), and
       ``(G) is submitted to the Secretary of Energy after energy-
     efficient measures are placed in service, for the purpose of 
     informing the report to Congress required by subsection (l).
       ``(2) Average level of energy usage intensity.--
       ``(A) In general.--The maximum average level of energy 
     usage intensity under paragraph (1)(D) shall not exceed 
     300,000 British thermal units per square foot.
       ``(B) Regulations.--
       ``(i) In general.--The Secretary, in consultation with the 
     Administrator of the Environmental Protection Agency, shall 
     develop distinct standards for categories and subcategories 
     of buildings with respect to maximum average level of energy 
     usage intensity based on the best available information used 
     by the ENERGY STAR program.
       ``(ii) Review.--The standards developed pursuant to clause 
     (i) shall be reviewed and updated by the Secretary, in 
     consultation with the Administrator of the Environmental 
     Protection Agency, not later than every 3 years.
       ``(3) Commercial building.--

[[Page 8387]]

       ``(A) In general.--The term `commercial building' means a 
     building located in the United States--
       ``(i) that is in existence and occupied on the date of the 
     enactment of this section,
       ``(ii) for which a certificate of occupancy has been issued 
     at least 10 years before energy efficiency measures are 
     placed in service, and
       ``(iii) with a primary use or purpose other than as 
     residential housing.
       ``(B) Shopping centers.--In the case of a retail shopping 
     center, the term `commercial building' shall include an area 
     within such building that is--
       ``(i) 50,000 square feet or larger that is covered by a 
     separate utility grade meter to record energy consumption in 
     such area, and
       ``(ii) under the day-to-day management and operation of--

       ``(I) the owner of such building as common space areas, or
       ``(II) a retail tenant, lessee, or other occupant.

       ``(4) Energy-efficient measures.--The term `energy-
     efficient measures' means a measure, or combination of 
     measures, placed in service through a certified retrofit 
     plan--
       ``(A) on or in a commercial building or multifamily 
     building,
       ``(B) as part of--
       ``(i) the lighting systems,
       ``(ii) the heating, cooling, ventilation, refrigeration, or 
     hot water systems,
       ``(iii) building transportation systems, such as elevators 
     and escalators,
       ``(iv) the building envelope, which may include an energy-
     efficient cool roof,
       ``(v) a continuous commissioning contract under the 
     supervision of a licensed engineer or architect, or
       ``(vi) building operations or monitoring systems, including 
     utility-grade meters and submeters, and
       ``(C) including equipment, materials, and systems within 
     subparagraph (B) with respect to which depreciation (or 
     amortization in lieu of depreciation) is allowed.
       ``(5) Energy savings.--The term `energy savings' means 
     source energy usage intensity reduced on a per square foot 
     basis through design and implementation of a certified 
     retrofit plan.
       ``(6) Multifamily building.--The term `multifamily 
     building'--
       ``(A) means--
       ``(i) a structure of 5 or more dwelling units located in 
     the United States--

       ``(I) that is in existence and occupied on the date of the 
     enactment of this section,
       ``(II) for which a certificate of occupancy has been issued 
     at least 10 years before energy efficiency measures are 
     placed in service, and
       ``(III) with a primary use as residential housing, and

       ``(B) includes such buildings owned and operated as a 
     condominium, cooperative, or other common interest community.
       ``(7) Source energy.--The term `source energy' means the 
     total amount of raw fuel that is required to operate a 
     commercial building or multifamily building, and accounts for 
     losses that are incurred in the generation, storage, 
     transport, and delivery of fuel to such a building.
       ``(e) Timing of Claiming Deductions.--Deductions allowed 
     under this section may be claimed as follows:
       ``(1) Design deduction.--In the case of a design deduction, 
     in the taxable year that energy efficiency measures are 
     placed in service.
       ``(2) Realized deduction.--In the case of a realized 
     deduction, in the second taxable year following the taxable 
     year described in paragraph (1).
       ``(f) Regulations.--
       ``(1) In general.--Not later than 180 days after the date 
     of the enactment of this section, and after notice and 
     opportunity for public comment, the Secretary, in 
     consultation with the Secretary of Energy and the 
     Administrator of the Environmental Protection Agency, shall 
     prescribe regulations--
       ``(A) for the manner and method for a licensed engineer or 
     architect to certify retrofit plans, model projected energy 
     savings, and calculate realized energy savings, and
       ``(B) notwithstanding subsection (b)(2)(C), to provide, as 
     appropriate, for a recapture of the deductions allowed under 
     this section if a retrofit plan is not fully implemented, or 
     a retrofit plan and energy savings are not certified or 
     verified in accordance with regulations prescribed under this 
     subsection.
       ``(2) Reliance on established protocols, etc.--To the 
     maximum extent practicable and available, such regulations 
     shall rely upon established protocols and documents used in 
     the ENERGY STAR program, and industry best practices and 
     existing guidelines, such as the Building Energy Modeling 
     Guidelines of the Commercial Energy Services Network 
     (COMNET).
       ``(3) Allowance of deductions pending issuance of 
     regulations.--Pending issuance of the regulations under 
     paragraph (1), the owner of a commercial building or a 
     multifamily building shall be allowed to claim or allocate a 
     deduction allowed under this section.
       ``(g) Notice to Owner.--Each certification of a retrofit 
     plan and calculation of energy savings required under this 
     section shall include an explanation to the owner of a 
     commercial building or a multifamily building regarding the 
     energy-efficient measures placed in service and their 
     projected and realized annual energy costs.
       ``(h) Allocation of Deduction.--
       ``(1) In general.--Not later than 180 days after the date 
     of the enactment of this section, the Secretary, in 
     consultation with the Secretary of Energy, shall promulgate a 
     regulation to allow the owner of a commercial building or a 
     multifamily building, including a government, tribal, or non-
     profit owner, to allocate any deduction allowed under this 
     section, or a portion thereof, to the person primarily 
     responsible for funding, financing, designing, leasing, 
     operating, or placing in service energy-efficient measures. 
     Such person shall be treated as the taxpayer for purposes of 
     this section and shall include a building tenant, financier, 
     architect, professional engineer, licensed contractor, energy 
     services company, or other building professional.
       ``(2) Form of allocation.--An allocation made under this 
     paragraph shall be in writing and in a form that meets the 
     form of allocation requirements in Notice 2008-40 of the 
     Internal Revenue Service.
       ``(3) Provision of allocation.--Not later than 30 days 
     after receipt of a written request from a person eligible to 
     receive an allocation under this paragraph, the owner of a 
     building that makes an allocation under this paragraph shall 
     provide the form of allocation (as described in paragraph 
     (2)) to such person.
       ``(4) Allocation from public owner of building.--In the 
     case of a commercial building or a multifamily building that 
     is owned by a Federal, State, or local government or a 
     subdivision thereof, Notice 2006-52 of the Internal Revenue 
     Service, as amplified by Notice 2008-40, shall apply to any 
     allocation.
       ``(i) Basis Reduction.--For purposes of this subtitle, if a 
     deduction is allowed under this section with respect to any 
     energy-efficient measures placed in service under a certified 
     retrofit plan other than in a qualified low-income building 
     (within the meaning of section 42), the basis of such 
     measures shall be reduced by the amount of the deduction so 
     allowed or so allocated.
       ``(j) Special Rule for Partnerships and S Corporations.--In 
     the case of a partnership or S corporation, this section 
     shall be applied at the partner or shareholder level, subject 
     to such reporting requirements as are determined appropriate 
     by the Secretary.
       ``(k) Tax Incentives Not Available.--
       ``(1) Energy efficient commercial buildings deduction.--
     Energy-efficient measures for which a deduction is allowed 
     under this section shall not be eligible for a deduction 
     under section 179D.
       ``(2) New energy efficient home credit.--No deduction shall 
     be allowed under this section with respect to any building or 
     dwelling unit with respect to which a credit under section 
     45L was allowed.
       ``(l) Report to Congress.--
       ``(1) In general.--Biennially, beginning with the first 
     year after the enactment of this section, the Secretary, in 
     conjunction with the Secretary of Energy, shall submit a 
     report to Congress that--
       ``(A) explains the energy saved, the energy-efficient 
     measures implemented, the realization of energy savings 
     projected, and records the amounts and types of deductions 
     allowed under this section,
       ``(B) explains the energy saved, the energy efficient 
     measures implemented, and records the amount of deductions 
     allowed under section 179D, based on the data collected 
     pursuant to subsection (i) of such section,
       ``(C) determines the number of jobs created as a result of 
     the deduction allowed under this section,
       ``(D) determines how the use of any deduction allowed under 
     this section may be improved, based on the information 
     provided to the Secretary of Energy,
       ``(E) provides aggregated data with respect to the 
     information described in subparagraphs (A) through (D), and
       ``(F) provides statutory recommendations to Congress that 
     would reduce energy consumption in new and existing 
     commercial buildings located in the United States, including 
     recommendations on providing energy-efficient tax incentives 
     for subsections of buildings that operate with specific 
     utility-grade metering.
       ``(2) Protection of taxpayer information.--The Secretary 
     and the Secretary of Energy shall share information on 
     deductions allowed under this section and related reports 
     submitted, as requested by each agency to fulfill its 
     obligations under this section, with such redactions as 
     deemed necessary to protect the personally identifiable 
     financial information of a taxpayer.
       ``(3) Incorporation into department of energy programs.--
     The Secretary of Energy shall, to the maximum extent 
     practicable, incorporate conclusions of the report under this 
     subsection into current Department of Energy building 
     performance and energy efficiency data collection and other 
     reporting programs.
       ``(m) Termination.--This section shall not apply to any 
     property placed in service after December 31, 2016.''.
       (b) Effect on Depreciation on Earnings and Profits.--
     Subparagraph (B) of section 312(k)(3), as amended by this 
     title, is amended--

[[Page 8388]]

       (1) by striking ``or 179E'' both places it appears in 
     clause (i) and inserting ``179E, or 179F'',
       (2) by striking ``or 179e'' in the heading and inserting 
     ``179e, or 179f'', and
       (3) by inserting ``or 179F'' after ``section 179D'' in 
     clause (ii)(I).
       (c) Conforming Amendment.--The table of sections for part 
     VI of subchapter B of chapter 1 is amended by inserting after 
     the item relating to section 179E the following new item:

``Sec. 179F. Deduction for retrofits of existing commercial and 
              multifamily buildings.''.
       (d) Effective Date.--Except as otherwise provided, the 
     amendments made by this section shall apply to property 
     placed in service in taxable years beginning after the date 
     of the enactment of this Act.

                  Subtitle B--Home Energy Improvements

     SEC. _21. PERFORMANCE BASED HOME ENERGY IMPROVEMENTS.

       (a) In General.--Subpart A of part IV of subchapter A of 
     chapter 1 is amended by adding at the end the following new 
     section:

     ``SEC. 25E. PERFORMANCE BASED ENERGY IMPROVEMENTS.

       ``(a) In General.--In the case of an individual, there 
     shall be allowed as a credit against the tax imposed by this 
     chapter for the taxable year for a qualified whole home 
     energy efficiency retrofit an amount determined under 
     subsection (b).
       ``(b) Amount Determined.--
       ``(1) In general.--Subject to paragraph (4), the amount 
     determined under this subsection is equal to--
       ``(A) the base amount under paragraph (2), increased by
       ``(B) the amount determined under paragraph (3).
       ``(2) Base amount.--For purposes of paragraph (1)(A), the 
     base amount is $2,000, but only if the energy use for the 
     residence is reduced by at least 20 percent below the 
     baseline energy use for such residence as calculated 
     according to paragraph (5).
       ``(3) Increase amount.--For purposes of paragraph (1)(B), 
     the amount determined under this paragraph is $500 for each 
     additional 5 percentage point reduction in energy use.
       ``(4) Limitation.--In no event shall the amount determined 
     under this subsection exceed the lesser of--
       ``(A) $5,000 with respect to any residence, or
       ``(B) 30 percent of the qualified home energy efficiency 
     expenditures paid or incurred by the taxpayer under 
     subsection (c) with respect to such residence.
       ``(5) Determination of energy use reduction.--For purposes 
     of this subsection--
       ``(A) In general.--The reduction in energy use for any 
     residence shall be determined by modeling the annual 
     predicted percentage reduction in total energy costs for 
     heating, cooling, hot water, and permanent lighting. It shall 
     be modeled using computer modeling software approved under 
     subsection (d)(2) and a baseline energy use calculated 
     according to subsection (d)(1)(C).
       ``(B) Energy costs.--For purposes of subparagraph (A), the 
     energy cost per unit of fuel for each fuel type shall be 
     determined by dividing the total actual energy bill for the 
     residence for that fuel type for the most recent available 
     12-month period by the total energy units of that fuel type 
     used over the same period.
       ``(c) Qualified Home Energy Efficiency Expenditures.--For 
     purposes of this section, the term `qualified home energy 
     efficiency expenditures'--
       ``(1) means any amount paid or incurred by the taxpayer 
     during the taxable year for a qualified whole home energy 
     efficiency retrofit, including the cost of diagnostic 
     procedures, labor, and modeling,
       ``(2) includes only measures that have an average estimated 
     life of 5 years or more as determined by the Secretary, after 
     consultation with the Secretary of Energy, and
       ``(3) does not include any amount which is paid or incurred 
     in connection with any expansion of the building envelope of 
     the residence.
       ``(d) Qualified Whole Home Energy Efficiency Retrofit.--For 
     purposes of this section--
       ``(1) In general.--The term `qualified whole home energy 
     efficiency retrofit' means the implementation of measures 
     placed in service during the taxable year intended to reduce 
     the energy use of the principal residence of the taxpayer 
     which is located in the United States. A qualified whole home 
     energy efficiency retrofit shall--
       ``(A) subject to paragraph (4), be designed, implemented, 
     and installed by a contractor which is--
       ``(i) accredited by the Building Performance Institute 
     (hereafter in this section referred to as `BPI') or a 
     preexisting BPI accreditation-based State certification 
     program with enhancements to achieve State energy policy,
       ``(ii) a Residential Energy Services Network (hereafter in 
     this section referred to as `RESNET') accredited Energy Smart 
     Home Performance Team, or
       ``(iii) accredited by an equivalent certification program 
     approved by the Secretary, after consultation with the 
     Secretary of Energy, for this purpose,
       ``(B) install a set of measures modeled to achieve a 
     reduction in energy use of at least 20 percent below the 
     baseline energy use established in subparagraph (C), using 
     computer modeling software approved under paragraph (2),
       ``(C) establish the baseline energy use by calibrating the 
     model using sections 3 and 4 and Annex D of BPI Standard BPI-
     2400-S-2011: Standardized Qualification of Whole House Energy 
     Savings Estimates, or an equivalent standard approved by the 
     Secretary, after consultation with Secretary of Energy, for 
     this purpose,
       ``(D) document the measures implemented in the residence 
     through photographs taken before and after the retrofit, 
     including photographs of its visible energy systems and 
     envelope as relevant, and
       ``(E) implement a test-out procedure, following guidelines 
     of the applicable certification program specified under 
     clause (i) or (ii) of subparagraph (A), or equivalent 
     guidelines approved by the Secretary, after consultation with 
     the Secretary of Energy, for this purpose, to ensure--
       ``(i) the safe operation of all systems post retrofit, and
       ``(ii) that all improvements are included in, and have been 
     installed according to, standards of the applicable 
     certification program specified under clause (i) or (ii) of 
     subparagraph (A), or equivalent standards approved by the 
     Secretary, after consultation with the Secretary of Energy, 
     for this purpose.
     For purposes of subparagraph (A)(iii), an organization or 
     State may submit an equivalent certification program for 
     approval by the Secretary, in consultation with the Secretary 
     of Energy. The Secretary shall approve or deny such 
     submission not later than 180 days after receipt, and, if the 
     Secretary fails to respond in that time period, the submitted 
     equivalent certification program shall be considered 
     approved.
       ``(2) Approved modeling software.--For purposes of 
     paragraph (1)(B), the contractor (or, if applicable, the 
     person described in paragraph (4)) shall use modeling 
     software certified by RESNET as following the software 
     verification test suites in section 4.2.1 of RESNET 
     Publication No. 06-001 or certified by an alternative 
     organization as following an equivalent standard, as approved 
     by the Secretary, after consultation with the Secretary of 
     Energy, for this purpose.
       ``(3) Documentation.--The Secretary, after consultation 
     with the Secretary of Energy, shall prescribe regulations 
     directing what specific documentation is required to be 
     retained or submitted by the taxpayer in order to claim the 
     credit under this section, which shall include, in addition 
     to the photographs under paragraph (1)(D), a form approved by 
     the Secretary that is completed and signed by the qualified 
     whole home energy efficiency retrofit contractor under 
     penalties of perjury. Such form shall include--
       ``(A) a statement that the contractor (or, if applicable, 
     the person described in paragraph (4)) followed the specified 
     procedures for establishing baseline energy use and 
     estimating reduction in energy use,
       ``(B) the name of the software used for calculating the 
     baseline energy use and reduction in energy use, the 
     percentage reduction in projected energy savings achieved, 
     and a statement that such software was certified for this 
     program by the Secretary, after consultation with the 
     Secretary of Energy,
       ``(C) a statement that the contractor (or, if applicable, 
     the person described in paragraph (4)) will retain the 
     details of the calculations and underlying energy bills for 5 
     years and will make such details available for inspection by 
     the Secretary or the Secretary of Energy, if so requested,
       ``(D) a list of measures installed and a statement that all 
     measures included in the reduction in energy use estimate are 
     included in, and installed according to, standards of the 
     applicable certification program specified under clause (i) 
     or (ii) of subparagraph (A), or equivalent standards approved 
     by the Secretary, after consultation with the Secretary of 
     Energy,
       ``(E) a statement that the contractor (or, if applicable, 
     the person described in paragraph (4)) meets the requirements 
     of paragraph (1)(A), and
       ``(F) documentation of the total cost of the project in 
     order to comply with the limitation under subsection 
     (b)(4)(B).
       ``(4) Certified home energy rater.--For purposes of 
     paragraph (1)(A), a contractor shall be deemed to have 
     satisfied the accreditation requirement under such paragraph 
     if the contractor enters into a contract with a person that 
     satisfies such accreditation requirement for purposes of 
     modeling the energy use reduction described in paragraph 
     (1)(B).
       ``(e) Additional Rules.--For purposes of this section--
       ``(1) No double benefit.--
       ``(A) In general.--With respect to any residence, no credit 
     shall be allowed under this section for any taxable year in 
     which the taxpayer claims a credit under section 25C.
       ``(B) Renewable energy systems and appliances.--In the case 
     of a renewable energy system or appliance that qualifies for 
     another credit under this chapter, the resulting reduction in 
     energy use shall not be taken into account in determining the 
     percentage energy use reductions under subsection (b).

[[Page 8389]]

       ``(C) No double benefit for certain expenditures.--The term 
     `qualified home energy efficiency expenditures' shall not 
     include any expenditure for which a deduction or credit is 
     claimed by the taxpayer under this chapter for the taxable 
     year or with respect to which the taxpayer receives any 
     Federal energy efficiency rebate.
       ``(2) Principal residence.--The term `principal residence' 
     has the same meaning as when used in section 121.
       ``(3) Special rules.--Rules similar to the rules under 
     paragraphs (4), (5), (6), (7), and (8) of section 25D(e) and 
     section 25C(e)(2) shall apply, as determined by the 
     Secretary, after consultation with the Secretary of Energy.
       ``(4) Basis adjustments.--For purposes of this subtitle, if 
     a credit is allowed under this section with respect to any 
     expenditure with respect to any property, the increase in the 
     basis of such property which would (but for this paragraph) 
     result from such expenditure shall be reduced by the amount 
     of the credit so allowed.
       ``(5) Election not to claim credit.--No credit shall be 
     determined under subsection (a) for the taxable year if the 
     taxpayer elects not to have subsection (a) apply to such 
     taxable year.
       ``(6) Multiple year retrofits.--If the taxpayer has claimed 
     a credit under this section in a previous taxable year, the 
     baseline energy use for the calculation of reduced energy use 
     must be established after the previous retrofit has been 
     placed in service.
       ``(f) Termination.--This section shall not apply with 
     respect to any costs paid or incurred after December 31, 
     2016.
       ``(g) Secretary Review.--The Secretary, after consultation 
     with the Secretary of Energy, shall establish a review 
     process for the retrofits performed, including an estimate of 
     the usage of the credit and a statistically valid analysis of 
     the average actual energy use reductions, utilizing utility 
     bill data collected on a voluntary basis, and report to 
     Congress not later than June 30, 2014, any findings and 
     recommendations for--
       ``(1) improvements to the effectiveness of the credit under 
     this section, and
       ``(2) expansion of the credit under this section to rental 
     units.''.
       (b) Conforming Amendments.--
       (1) Section 1016(a) is amended--
       (A) by striking ``and'' at the end of paragraph (36),
       (B) by striking the period at the end of paragraph (37) and 
     inserting ``, and'', and
       (C) by adding at the end the following new paragraph:
       ``(38) to the extent provided in section 25E(e)(4), in the 
     case of amounts with respect to which a credit has been 
     allowed under section 25E.''.
       (2) Section 6501(m) is amended by inserting ``25E(e)(5),'' 
     after ``section''.
       (3) The table of sections for subpart A of part IV of 
     subchapter A chapter 1 is amended by inserting after the item 
     relating to section 25D the following new item:

``Sec. 25E. Performance based energy improvements.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred for a qualified whole 
     home energy efficiency retrofit placed in service after 
     December 31, 2013.

           Subtitle C--Industrial Energy and Water Efficiency

     SEC. _31. MODIFICATIONS IN CREDIT FOR COMBINED HEAT AND POWER 
                   SYSTEM PROPERTY.

       (a) Modification of Certain Capacity Limitations.--Section 
     48(c)(3)(B) is amended--
       (1) by striking ``15 megawatts'' in clause (ii) and 
     inserting ``25 megawatts'',
       (2) by striking ``20,000 horsepower'' in clause (ii) and 
     inserting ``34,000 horsepower'', and
       (3) by striking clause (iii).
       (b) Increase in Credit Percentage for Systems With Greater 
     Efficiency.--Subparagraph (A) of section 48(a)(2) is 
     amended--
       (1) by striking ``and'' at the end of subclause (III) of 
     clause (i),
       (2) by adding at the end of clause (i) the following new 
     subclause:

       ``(V) combined heat and power system property the energy 
     efficiency percentage of which (as defined in subsection 
     (c)(3)(C)(i)) is equal to or greater than 85 percent,'',

       (3) by redesignating clause (ii) as clause (iii),
       (4) by striking ``clause (i)'' in clause (iii), as so 
     redesignated, and inserting ``clause (i) or (ii)'', and
       (5) by inserting after clause (i) the following new clause:
       ``(ii) 20 percent in the case of combined heat and power 
     system property the energy percentage of which (as defined in 
     subsection (c)(3)(C)(i)) is equal to or greater than 75 
     percent and less than 85 percent, and''.
       (c) Extension.--Clause (iv) of section 48(c)(3)(A) is 
     amended by striking ``January 1, 2017'' and inserting 
     ``January 1, 2019''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to periods after the date of the enactment of 
     this Act, under rules similar to the rules of section 48(m) 
     of the Internal Revenue Code of 1986 (as in effect on the day 
     before the date of the enactment of the Revenue 
     Reconciliation Act of 1990).

     SEC. _32. INVESTMENT TAX CREDIT FOR BIOMASS HEATING PROPERTY.

       (a) In General.--Subparagraph (A) of section 48(a)(3) is 
     amended by striking ``or'' at the end of clause (vi), by 
     inserting ``or'' at the end of clause (vii), and by inserting 
     after clause (vii) the following new clause:
       ``(viii) open-loop biomass (within the meaning of section 
     45(c)(3)) heating property, including boilers or furnaces 
     which operate at output efficiencies of not less than 65 
     percent (measured by the higher heating value of the fuel) 
     and which provide thermal energy in the form of heat, hot 
     water, or steam for space heating, air conditioning, domestic 
     hot water, or industrial process heat, but only with respect 
     to periods ending before January 1, 2016,''.
       (b) 30-Percent and 15-Percent Credits.--
       (1) In general.--Subparagraph (A) of section 48(a)(2), as 
     amended by this title, is amended--
       (A) by redesignating clause (iii) as clause (iv),
       (B) by striking ``and'' at the end of clause (ii),
       (C) by striking ``clause (i) or (ii)'' in clause (iv), as 
     so redesignated, and inserting ``clause (i), (ii), or 
     (iii)'', and
       (D) by inserting after clause (ii) the following new 
     clause:
       ``(iii) 15 percent in the case of energy property described 
     in paragraph (3)(A)(viii) to which clause (i)(VI) does not 
     apply, and''.
       (2) Increased credit for greater efficiency.--Clause (i) of 
     section 48(a)(2)(A), as amended by this title, is amended by 
     striking ``and'' at the end of subclause (IV), by striking 
     the comma at the end of subclause (V) and inserting ``, 
     and'', and by inserting after subclause (V) the following new 
     subclause:

       ``(VI) energy property described in paragraph (3)(A)(viii) 
     which operates at an output efficiency of not less than 80 
     percent (measured by the higher heating value of the 
     fuel),''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to periods after the date of the enactment of 
     this Act, in taxable years ending after such date, under 
     rules similar to the rules of section 48(m) of the Internal 
     Revenue Code of 1986 (as in effect on the day before the date 
     of the enactment of the Revenue Reconciliation Act of 1990).

     SEC. _33. INVESTMENT TAX CREDIT FOR WASTE HEAT TO POWER 
                   PROPERTY.

       (a) In General.--Subparagraph (A) of section 48(a)(3), as 
     amended by this title, is amended by striking ``or'' at the 
     end of clause (vii), by striking the comma at the end of 
     clause (viii) and inserting ``, or'', and by inserting after 
     clause (viii) the following new clause:
       ``(ix) waste heat to power property,''.
       (b) 30-Percent Credit.--Clause (i) of section 48(a)(2)(A), 
     as amended by this title, is amended by striking ``and'' at 
     the end of subclause (V), by striking the comma at the end of 
     subclause (VI) and inserting ``, and'', and by inserting 
     after subclause (VI) the following new subclause:

       ``(VII) waste heat to power property,''.

       (c) Waste Heat To Power Property.--Subsection (c) of 
     section 48 is amended by adding at the end the following new 
     paragraph:
       ``(5) Waste heat to power property.--
       ``(A) In general.--The term `waste heat to power property' 
     means property--
       ``(i) comprising a system which generates electricity 
     through the recovery of a qualified waste heat resource, and
       ``(ii) which is placed in service before January 1, 2019.
       ``(B) Qualified waste heat resource.--The term `qualified 
     waste heat resource' means--
       ``(i) exhaust heat or flared gas from an industrial 
     process,
       ``(ii) waste gas or industrial tail gas that would 
     otherwise be flared, incinerated, or vented,
       ``(iii) a pressure drop in any gas for an industrial or 
     commercial process, or
       ``(iv) such other forms of waste heat resources as the 
     Secretary may determine.
       ``(C) Exception.--The term `qualified waste heat resource' 
     does not include any heat resource from a process whose 
     primary purpose is the generation of electricity utilizing a 
     fossil fuel or the production of oil, natural gas, or other 
     fossil fuels.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to periods after the date of the enactment of 
     this Act, in taxable years ending after such date, under 
     rules similar to the rules of section 48(m) of the Internal 
     Revenue Code of 1986 (as in effect on the day before the date 
     of the enactment of the Revenue Reconciliation Act of 1990).

     SEC. _34. MOTOR ENERGY EFFICIENCY IMPROVEMENT TAX CREDIT.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 is amended by adding at the end the following new 
     section:

     ``SEC. 45S. MOTOR ENERGY EFFICIENCY IMPROVEMENT TAX CREDIT.

       ``(a) In General.--For purposes of section 38, the motor 
     energy efficiency improvement tax credit determined under 
     this section for the taxable year is an amount equal to $120 
     multiplied by the motor horsepower of an appliance, machine, 
     or equipment--
       ``(1) manufactured in such taxable year by a manufacturer 
     which incorporates an advanced motor and drive system into a 
     newly

[[Page 8390]]

     designed appliance, machine, or equipment or into a 
     redesigned appliance, machine, or equipment which did not 
     previously make use of the advanced motor and drive system, 
     or
       ``(2) placed back into service in such taxable year by an 
     end user which upgrades an existing appliance, machine, or 
     equipment with an advanced motor and drive system.
     For any advanced motor and drive system with a total 
     horsepower of less than 10, such motor energy efficiency 
     improvement tax credit is an amount which bears the same 
     ratio to $120 as such total horsepower bears to 1 horsepower.
       ``(b) Advanced Motor and Drive System.--For purposes of 
     this section, the term `advanced motor and drive system' 
     means a motor and any required associated electronic control 
     which--
       ``(1) offers variable or multiple speed operation, and
       ``(2) uses permanent magnet technology, electronically 
     commutated motor technology, switched reluctance motor 
     technology, synchronous reluctance, or such other motor and 
     drive systems technologies as determined by the Secretary of 
     Energy.
       ``(c) Aggregate Per Taxpayer Limitation.--
       ``(1) In general.--The amount of the credit determined 
     under this section for any taxpayer for any taxable year 
     shall not exceed the excess (if any) of $2,000,000 over the 
     aggregate credits allowed under this section with respect to 
     such taxpayer for all prior taxable years.
       ``(2) Aggregation rules.--For purposes of this section, all 
     persons treated as a single employer under subsections (a) 
     and (b) of section 52 shall be treated as 1 taxpayer.
       ``(d) Special Rules.--
       ``(1) Basis reduction.--For purposes of this subtitle, the 
     basis of any property for which a credit is allowable under 
     subsection (a) shall be reduced by the amount of such credit 
     so allowed.
       ``(2) No double benefit.--No other credit shall be 
     allowable under this chapter for property with respect to 
     which a credit is allowed under this section.
       ``(3) Property used outside united states not qualified.--
     No credit shall be allowable under subsection (a) with 
     respect to any property referred to in section 50(b)(1).
       ``(e) Application.--This section shall not apply to 
     property manufactured or placed back into service before the 
     date which is 6 months after the date of the enactment of 
     this section or after December 31, 2016.''.
       (b) Conforming Amendments.--
       (1) Section 38(b), as amended by sections 208(f) and 
     221(a)(2)(B) of this Act, is amended by striking ``plus'' at 
     the end of paragraph (35), by striking the period at the end 
     of paragraph (36) and inserting ``, plus'', and by adding at 
     the end the following new paragraph:
       ``(37) the motor energy efficiency improvement tax credit 
     determined under section 45S.''.
       (2) Section 1016(a), as amended by this title, is amended 
     by striking ``and'' at the end of paragraph (37), by striking 
     the period at the end of paragraph (38) and inserting ``, 
     and'', and by adding at the end the following new paragraph:
       ``(39) to the extent provided in section 45S(d)(1).''.
       (3) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1 is amended by adding at the end the 
     following new item:

``Sec. 45S. Motor energy efficiency improvement tax credit.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property manufactured or placed back into 
     service after the date which is 6 months after the date of 
     the enactment of this Act.

     SEC. _35. CREDIT FOR REPLACEMENT OF CFC REFRIGERANT CHILLER.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1, as amended by this title, is amended by adding at 
     the end the following new section:

     ``SEC. 45T. CFC CHILLER REPLACEMENT CREDIT.

       ``(a) In General.--For purposes of section 38, the CFC 
     chiller replacement credit determined under this section for 
     the taxable year is an amount equal to--
       ``(1) $150 multiplied by the tonnage rating of a CFC 
     chiller replaced with a new efficient chiller that is placed 
     in service by the taxpayer during the taxable year, plus
       ``(2) if all chilled water distribution pumps connected to 
     the new efficient chiller include variable frequency drives, 
     $100 multiplied by any tonnage downsizing.
       ``(b) CFC Chiller.--For purposes of this section, the term 
     `CFC chiller' includes property which--
       ``(1) was installed after 1980 and before 1993,
       ``(2) utilizes chlorofluorocarbon refrigerant, and
       ``(3) until replaced by a new efficient chiller, has 
     remained in operation and utilized for cooling a commercial 
     building.
       ``(c) New Efficient Chiller.--For purposes of this section, 
     the term `new efficient chiller' includes a water-cooled 
     chiller which is certified to meet efficiency standards 
     effective on January 1, 2015, as defined in table 6.8 in 
     Standard 90.1-2013 of the American Society of Heating, 
     Refrigerating, and Air Conditioning Engineers.
       ``(d) Tonnage Downsizing.--For purposes of this section, 
     the term `tonnage downsizing' means the amount by which the 
     tonnage rating of the CFC chiller exceeds the tonnage rating 
     of the new efficient chiller.
       ``(e) Energy Audit.--As a condition of receiving a tax 
     credit under this section, an energy audit shall be performed 
     on the building prior to installation of the new efficient 
     chiller, identifying cost-effective energy-saving measures, 
     particularly measures that could contribute to chiller 
     downsizing. The audit shall satisfy criteria that shall be 
     issued by the Secretary of Energy.
       ``(f) Property Used by Tax-Exempt Entity.--In the case of a 
     CFC chiller replaced by a new efficient chiller the use of 
     which is described in paragraph (3) or (4) of section 50(b), 
     the person who sold such new efficient chiller to the entity 
     shall be treated as the taxpayer that placed in service the 
     new efficient chiller that replaced the CFC chiller, but only 
     if such person clearly discloses to such entity in a document 
     the amount of any credit allowable under subsection (a) and 
     the person certifies to the Secretary that the person reduced 
     the price the entity paid for such new efficient chiller by 
     the entire amount of such credit.
       ``(g) Termination.--This section shall not apply to 
     replacements made after December 31, 2017.''.
       (b) Conforming Amendments.--
       (1) Section 38(b), as amended by this title, is amended by 
     striking ``plus'' at the end of paragraph (36), by striking 
     the period at the end of paragraph (37) and inserting ``, 
     plus'', and by adding at the end the following new paragraph:
       ``(38) the CFC chiller replacement credit determined under 
     section 45T.''.
       (2) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1, as amended by this title, is 
     amended by adding at the end the following new item:

``Sec. 45T. CFC chiller replacement credit.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to replacements made after the date of the 
     enactment of this Act.

     SEC. _36. QUALIFYING EFFICIENT INDUSTRIAL PROCESS WATER USE 
                   PROJECT CREDIT.

       (a) In General.--Section 46 is amended by inserting a comma 
     at the end of paragraph (4), by striking ``and'' at the end 
     of paragraph (5), by striking the period at the end of 
     paragraph (6) and inserting ``, and'', and by adding at the 
     end the following new paragraph:
       ``(7) the qualifying efficient industrial process water use 
     project credit.''.
       (b) Amount of Credit.--Subpart E of part IV of subchapter A 
     of chapter 1 is amended by inserting after section 48D the 
     following new section:

     ``SEC. 48E. QUALIFYING EFFICIENT INDUSTRIAL PROCESS WATER USE 
                   PROJECT CREDIT.

       ``(a) In General.--
       ``(1) Allowance of credit.--For purposes of section 46, the 
     qualifying efficient industrial process water use project 
     credit for any taxable year is an amount equal to the 
     applicable percentage of the qualified investment for such 
     taxable year with respect to any qualifying efficient 
     industrial process water use project of the taxpayer.
       ``(2) Applicable percentage.--For purposes of subsection 
     (a)--
       ``(A) In general.--The applicable percentage is--
       ``(i) 10 percent in the case of a qualifying efficient 
     industrial process water use project which achieves a 25 
     percent or greater (but less than 50 percent) reduction in 
     water use for industrial purposes,
       ``(ii) 20 percent in the case of a qualifying efficient 
     industrial process water use project which achieves a 50 
     percent or greater (but less than 75 percent) reduction in 
     water use for industrial purposes, and
       ``(iii) 30 percent in the case of a qualifying efficient 
     industrial process water use project which achieves a 75 
     percent or greater reduction in water use for industrial 
     purposes.
       ``(B) Water use.--For purposes of subparagraph (A)--
       ``(i) Measurement of reduction in water use.--

       ``(I) In general.--The taxpayer shall elect one of the 
     methods specified in clause (ii) for measuring the reduction 
     in water use achieved by a qualifying efficient industrial 
     process water use project.
       ``(II) Irrevocable election.--An election under subclause 
     (I), once made with respect to a qualifying efficient 
     industrial process water use project, shall apply to the 
     taxable year for which made and all subsequent taxable years, 
     and may not be revoked.
       ``(III) Projected savings.--The credit under subsection (a) 
     may be claimed on the basis of a reduction in water use which 
     is projected, by a registered professional engineer who is 
     not a related person (within the meaning of section 
     144(a)(3)(A)) to the taxpayer or the installer of eligible 
     property, to be achieved by a qualifying efficient industrial 
     process water use project. Such projection, if used as a 
     basis for determining the credit under subsection (a), shall 
     be included with the return of tax.

       ``(ii) Methods specified.--The methods specified in this 
     clause are--

       ``(I) a measurement of the percentage reduction in water 
     use per unit of product manufactured by the taxpayer, and

[[Page 8391]]

       ``(II) a measurement of the percentage reduction in water 
     use per pound of product manufactured by the taxpayer.

       ``(b) Qualified Investment.--
       ``(1) In general.--For purposes of subsection (a), the 
     qualified investment for any taxable year is the basis of 
     eligible property placed in service by the taxpayer during 
     such taxable year which is part of a qualifying efficient 
     industrial process water use project.
       ``(2) Exceptions.--Such term shall not include any portion 
     of the basis related to--
       ``(A) permitting,
       ``(B) land acquisition, or
       ``(C) infrastructure not directly associated with the 
     implementation of the technology or process improvements of 
     the qualifying efficient industrial process water use 
     project.
       ``(3) Certain qualified progress expenditures rules made 
     applicable.--Rules similar to the rules of subsections (c)(4) 
     and (d) of section 46 (as in effect on the day before the 
     enactment of the Revenue Reconciliation Act of 1990) shall 
     apply for purposes of this section.
       ``(4) Special rule for subsidized energy financing.--Rules 
     similar to the rules of section 48(a)(4) (without regard to 
     subparagraph (D) thereof) shall apply for purposes of this 
     section.
       ``(5) Limitation.--The amount which is treated for all 
     taxable years with respect to any qualifying efficient 
     industrial process water use project with respect to any site 
     shall not exceed $10,000,000.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Qualifying efficient industrial process water use 
     project.--
       ``(A) In general.--The term `qualifying efficient 
     industrial process water use project' means, with respect to 
     any site, a project which retrofits or expands an existing 
     facility to implement technology or process improvements 
     which are designed to reduce water use for systems that use 
     any form of water in the production of goods in the 
     manufacturing sector (as defined in North American Industrial 
     Classification System codes 31, 32, and 33), including any 
     system that uses water for heating, cooling, or energy 
     production for the production of goods in the trade or 
     business of manufacturing (other than extraction of fossil 
     fuels). Such term shall not include a project which alters an 
     existing facility to change the type of goods produced by 
     such facility.
       ``(B) Systems.--For purposes of subparagraph (A), the term 
     `system' does not include any system which does not encompass 
     1 or more complete processes.
       ``(2) Eligible property.--The term `eligible property' 
     means any property--
       ``(A) which is part of a qualifying efficient industrial 
     process water use project and which is necessary for the 
     reduction in water use described in paragraph (1),
       ``(B)(i) the construction, reconstruction, or erection of 
     which is completed by the taxpayer, or
       ``(ii) which is acquired by the taxpayer if the original 
     use of such property commences with the taxpayer, and
       ``(C) with respect to which depreciation (or amortization 
     in lieu of depreciation) is allowable.
       ``(3) Water use.--
       ``(A) In general.--The term `water use' means all water 
     taken for use at the site directly from ground and surface 
     water sources together with any water supplied to the site by 
     a regulated water system.
       ``(B) Regulated water system.--The term `regulated water 
     system' means a system that supplies water that has been 
     treated to potable standards.
       ``(d) Termination.--This section shall not apply to periods 
     after December 31, 2017, under rules similar to the rules of 
     section 48(m) (as in effect on the day before the date of the 
     enactment of the Revenue Reconciliation Act of 1990).''.
       (c) Conforming Amendments.--
       (1) Section 49(a)(1)(C) is amended by striking ``and'' at 
     the end of clause (v), by striking the period at the end of 
     clause (vi) and inserting ``, and'', and by adding at the end 
     the following new clause:
       ``(vii) the basis of any property which is part of a 
     qualifying efficient industrial use water project under 
     section 48E.''.
       (2) The table of sections for subpart E of part IV of 
     subchapter A of chapter 1 is amended by inserting after the 
     item relating to section 48D the following new item:

``Sec. 48E. Qualifying efficient industrial process water use project 
              credit.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to periods after the date of the enactment of 
     this Act, under rules similar to the rules of section 48(m) 
     of the Internal Revenue Code of 1986 (as in effect on the day 
     before the date of the enactment of the Revenue 
     Reconciliation Act of 1990).
                                 ______
                                 
  SA 3188. Mr. THUNE (for himself, Mr. McConnell, Mr. Roberts, Mr. 
Isakson, and Mr. Flake) submitted an amendment intended to be proposed 
to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to 
amend the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       Strike section 127 and insert the following:

     SEC. 127. PERMANENT EXTENSION OF EXPENSING CERTAIN 
                   DEPRECIABLE BUSINESS ASSETS FOR SMALL BUSINESS.

       (a) In General.--
       (1) Dollar limitation.--Paragraph (1) of section 179(b) is 
     amended by striking ``shall not exceed--'' and all that 
     follows and inserting ``shall not exceed $500,000.''.
       (2) Reduction in limitation.--Paragraph (2) of section 
     179(b) is amended by striking ``exceeds--'' and all that 
     follows and inserting ``exceeds $2,000,000.''.
       (b) Computer Software.--Clause (ii) of section 179(d)(1)(A) 
     is amended by striking ``, to which section 167 applies, and 
     which is placed in service in a taxable year beginning after 
     2002 and before 2014'' and inserting ``and to which section 
     167 applies''.
       (c) Election.--Paragraph (2) of section 179(c) is amended--
       (1) by striking ``may not be revoked'' and all that follows 
     through ``and before 2014'', and
       (2) by striking ``irrevocable'' in the heading thereof.
       (d) Air Conditioning and Heating Units.--Paragraph (1) of 
     section 179(d) is amended by striking ``and shall not include 
     air conditioning or heating units''.
       (e) Qualified Real Property.--Subsection (f) of section 179 
     is amended--
       (1) by striking ``beginning in 2010, 2011, 2012, or 2013'' 
     in paragraph (1), and
       (2) by striking paragraphs (3) and (4).
       (f) Inflation Adjustment.--Subsection (b) of section 179 is 
     amended by adding at the end the following new paragraph:
       ``(6) Inflation adjustment.--
       ``(A) In general.--In the case of any taxable year 
     beginning after 2014, the dollar amounts in paragraphs (1) 
     and (2) shall each be increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(c)(2)(A) for such calendar year, determined by 
     substituting calendar year 2013 for calendar year 2012 in 
     clause (ii) thereof.
       ``(B) Rounding.--The amount of any increase under 
     subparagraph (A) shall be rounded to the nearest multiple of 
     $10,000.''.
       (g) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.
                                 ______
                                 
  SA 3189. Mr. THUNE (for himself, Mr. McConnell, Mr. Cornyn, Mr. 
Roberts, and Mr. Isakson) submitted an amendment intended to be 
proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 
3474, to amend the Internal Revenue Code of 1986 to allow employers to 
exempt employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       Strike section 111 and insert the following:

     SEC. 111. RESEARCH CREDIT SIMPLIFIED AND MADE PERMANENT.

       (a) In General.--Subsection (a) of section 41 is amended to 
     read as follows:
       ``(a) In General.--For purposes of section 38, the research 
     credit determined under this section for the taxable year 
     shall be an amount equal to the sum of--
       ``(1) 20 percent of so much of the qualified research 
     expenses for the taxable year as exceeds 50 percent of the 
     average qualified research expenses for the 3 taxable years 
     preceding the taxable year for which the credit is being 
     determined,
       ``(2) 20 percent of so much of the basic research payments 
     for the taxable year as exceeds 50 percent of the average 
     basic research payments for the 3 taxable years preceding the 
     taxable year for which the credit is being determined, plus
       ``(3) 20 percent of the amounts paid or incurred by the 
     taxpayer in carrying on any trade or business of the taxpayer 
     during the taxable year (including as contributions) to an 
     energy research consortium for energy research.''.
       (b) Repeal of Termination.--Section 41 is amended by 
     striking subsection (h).
       (c) Conforming Amendments.--
       (1) Subsection (c) of section 41 is amended to read as 
     follows:
       ``(c) Determination of Average Research Expenses for Prior 
     Years.--
       ``(1) Special rule in case of no qualified research 
     expenditures in any of 3 preceding taxable years.--In any 
     case in which the taxpayer has no qualified research expenses 
     in any one of the 3 taxable years preceding the taxable year 
     for which the credit is being determined, the amount 
     determined under subsection (a)(1) for such taxable year 
     shall be equal to 10 percent of the qualified research 
     expenses for the taxable year.

[[Page 8392]]

       ``(2) Consistent treatment of expenses.--
       ``(A) In general.--Notwithstanding whether the period for 
     filing a claim for credit or refund has expired for any 
     taxable year taken into account in determining the average 
     qualified research expenses, or average basic research 
     payments, taken into account under subsection (a), the 
     qualified research expenses and basic research payments taken 
     into account in determining such averages shall be determined 
     on a basis consistent with the determination of qualified 
     research expenses and basic research payments, respectively, 
     for the credit year.
       ``(B) Prevention of distortions.--The Secretary may 
     prescribe regulations to prevent distortions in calculating a 
     taxpayer's qualified research expenses or basic research 
     payments caused by a change in accounting methods used by 
     such taxpayer between the current year and a year taken into 
     account in determining the average qualified research 
     expenses or average basic research payments taken into 
     account under subsection (a).''.
       (2) Section 41(e) is amended--
       (A) by striking all that precedes paragraph (6) and 
     inserting the following:
       ``(e) Basic Research Payments.--For purposes of this 
     section--
       ``(1) In general.--The term `basic research payment' means, 
     with respect to any taxable year, any amount paid in cash 
     during such taxable year by a corporation to any qualified 
     organization for basic research but only if--
       ``(A) such payment is pursuant to a written agreement 
     between such corporation and such qualified organization, and
       ``(B) such basic research is to be performed by such 
     qualified organization.
       ``(2) Exception to requirement that research be performed 
     by the organization.--In the case of a qualified organization 
     described in subparagraph (C) or (D) of paragraph (3), 
     subparagraph (B) of paragraph (1) shall not apply.'',
       (B) by redesignating paragraphs (6) and (7) as paragraphs 
     (3) and (4), respectively, and
       (C) in paragraph (4) as so redesignated, by striking 
     subparagraphs (B) and (C) and by redesignating subparagraphs 
     (D) and (E) as subparagraphs (B) and (C), respectively.
       (3) Section 41(f)(3)is amended--
       (A)(i) by striking ``, and the gross receipts'' in 
     subparagraph (A)(i) and all that follows through ``determined 
     under clause (iii)'',
       (ii) by striking clause (iii) of subparagraph (A) and 
     redesignating clauses (iv), (v), and (vi), thereof, as 
     clauses (iii), (iv), and (v), respectively,
       (iii) by striking ``and (iv)'' each place it appears in 
     subparagraph (A)(iv) (as so redesignated) and inserting ``and 
     (iii)'',
       (iv) by striking subclause (IV) of subparagraph (A)(iv) (as 
     so redesignated), by striking ``, and'' at the end of 
     subparagraph (A)(iv)(III) (as so redesignated) and inserting 
     a period, and by adding ``and'' at the end of subparagraph 
     (A)(iv)(II) (as so redesignated),
       (v) by striking ``(A)(vi)'' in subparagraph (B) and 
     inserting ``(A)(v)'', and
       (vi) by striking ``(A)(iv)(II)'' in subparagraph (B)(i)(II) 
     and inserting ``(A)(iii)(II)'',
       (B) by striking ``, and the gross receipts of the 
     predecessor,'' in subparagraph (A)(iv)(II) (as so 
     redesignated),
       (C) by striking ``, and the gross receipts of,'' in 
     subparagraph (B),
       (D) by striking ``, or gross receipts of,'' in subparagraph 
     (B)(i)(I), and
       (E) by striking subparagraph (C).
       (d) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to taxable years 
     beginning after December 31, 2013.
       (2) Subsection (b).--The amendment made by subsection (b) 
     shall apply to amounts paid or incurred after December 31, 
     2013.
                                 ______
                                 
  SA 3190. Mr. THUNE submitted an amendment intended to be proposed to 
amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend 
the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       Strike sections 137 and 138 and insert the following:

     SEC. 137. PERMANENT RULE REGARDING BASIS ADJUSTMENT TO STOCK 
                   OF S CORPORATIONS MAKING CHARITABLE 
                   CONTRIBUTIONS OF PROPERTY.

       (a) In General.--Section 1367(a)(2) is amended by striking 
     the last sentence.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions made in taxable years beginning 
     after December 31, 2013.

     SEC. 138. REDUCED RECOGNITION PERIOD FOR BUILT-IN GAINS OF S 
                   CORPORATIONS MADE PERMANENT.

       (a) In General.--Paragraph (7) of section 1374(d) is 
     amended to read as follows:
       ``(7) Recognition period.--
       ``(A) In general.--The term recognition period means the 5-
     year period beginning with the 1st day of the 1st taxable 
     year for which the corporation was an S corporation. For 
     purposes of applying this section to any amount includible in 
     income by reason of distributions to shareholders pursuant to 
     section 593(e), the preceding sentence shall be applied 
     without regard to the phrase 5-year.
       ``(B) Installment sales.--If an S corporation sells an 
     asset and reports the income from the sale using the 
     installment method under section 453, the treatment of all 
     payments received shall be governed by the provisions of this 
     paragraph applicable to the taxable year in which such sale 
     was made.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.
                                 ______
                                 
  SA 3191. Mr. THUNE submitted an amendment intended to be proposed to 
amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend 
the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       Strike section 106 and insert the following:

     SEC. 106. PERMANENT EXTENSION OF DEDUCTION OF STATE AND LOCAL 
                   GENERAL SALES TAXES.

       (a) In General.--Section 164(b)(5) is amended by striking 
     subparagraph (I).
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.
                                 ______
                                 
  SA 3192. Mr. THUNE (for himself and Ms. Ayotte) submitted an 
amendment intended to be proposed by him to the bill H.R. 3474, to 
amend the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the end, add the following:

                       TITLE _--OTHER PROVISIONS

     SEC. _01. OLYMPIC AND PARALYMPIC MEDALS AND USOC PRIZE MONEY 
                   EXCLUDED FROM GROSS INCOME.

       (a) In General.--Section 74 is amended by adding at the end 
     the following new subsection:
       ``(d) Exception for Olympic and Paralympic Medals and 
     Prizes.--Gross income shall not include the value of any 
     medal awarded in, or any prize money received from the United 
     States Olympic Committee on account of, competition in the 
     Olympic Games or Paralympic Games.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to prizes and awards received after December 31, 
     2013.
                                 ______
                                 
  SA 3193. Mr. THUNE submitted an amendment intended to be proposed by 
him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the end, add the following:

                     TITLE _--INTERNET TAX FREEDOM

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``Internet Tax Freedom 
     Forever Act''.

     SEC. _02. FINDINGS.

       Congress makes the following findings:
       (1) The Internet has continued to drive economic growth, 
     productivity and innovation since the Internet Tax Freedom 
     Act was first enacted in 1998.
       (2) The Internet promotes a nationwide economic environment 
     that facilitates innovation, promotes efficiency, and 
     empowers people to broadly share their ideas.
       (3) According to the National Broadband Plan, cost remains 
     the biggest barrier to consumer broadband adoption. Keeping 
     Internet access affordable promotes consumer access to this 
     critical gateway to jobs, education, healthcare, and 
     entrepreneurial opportunities, regardless of race, income, or 
     neighborhood.
       (4) Small business owners rely heavily on affordable 
     Internet access, providing them with access to new markets, 
     additional consumers, and an opportunity to compete in the 
     global economy.
       (5) Economists have recognized that excessive taxation of 
     innovative communications technologies reduces economic 
     welfare more than taxes on other sectors of the economy.
       (6) The provision of affordable access to the Internet is 
     fundamental to the American economy and access to it must be 
     protected from multiple and discriminatory taxes at the State 
     and local level.

[[Page 8393]]

       (7) As a massive global network that spans political 
     boundaries, the Internet is inherently a matter of interstate 
     and foreign commerce within the jurisdiction of the United 
     States Congress under article I, section 8, clause 3 of the 
     Constitution of the United States.

     SEC. _03. PERMANENT MORATORIUM ON INTERNET ACCESS TAXES AND 
                   MULTIPLE AND DISCRIMINATORY TAXES ON ELECTRONIC 
                   COMMERCE.

       (a) In General.--Section 1101(a) of the Internet Tax 
     Freedom Act (47 U.S.C. 151 note) is amended by striking `` 
     during the period beginning November 1, 2003, and ending 
     November 1, 2014''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxes imposed after the date of the enactment 
     of this Act.
                                 ______
                                 
  SA 3194. Mr. THUNE (for himself and Mr. Schumer) submitted an 
amendment intended to be proposed by him to the bill H.R. 3474, to 
amend the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the end, add the following:

                       TITLE _--OTHER PROVISIONS

     SEC. _01. OLYMPIC AND PARALYMPIC MEDALS AND USOC PRIZE MONEY 
                   EXCLUDED FROM GROSS INCOME.

       (a) In General.--Section 74 is amended by adding at the end 
     the following new subsection:
       ``(d) Exception for Olympic and Paralympic Medals and 
     Prizes.--Gross income shall not include the value of any 
     medal awarded in, or any prize money received from the United 
     States Olympic Committee on account of, competition in the 
     Olympic Games or Paralympic Games.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to prizes and awards received after December 31, 
     2013.
                                 ______
                                 
  SA 3195. Ms. COLLINS (for herself and Mr. Nelson) submitted an 
amendment intended to be proposed by her to the bill H.R. 3474, to 
amend the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

               TITLE __--RETIREMENT SECURITY ACT OF 2014

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``Retirement Security Act of 
     2014''.

     SEC. _02. ELIMINATION OF DISINCENTIVE TO POOLING FOR MULTIPLE 
                   EMPLOYER PLANS.

       (a) In General.--Not later than one year after the date of 
     the enactment of this Act, the Secretary of the Treasury 
     shall prescribe final regulations under which a plan 
     described in section 413(c) of the Internal Revenue Code of 
     1986 may be treated as satisfying the qualification 
     requirements of section 401(a) of such Code despite the 
     violation of such requirements with respect to one or more 
     participating employers. Such rules may require that the 
     portion of the plan attributable to such participating 
     employers be spun off to plans maintained by such employers.

     SEC. _03. MODIFICATION OF ERISA RULES RELATING TO MULTIPLE 
                   EMPLOYER DEFINED CONTRIBUTION PLANS.

       (a) In General.--
       (1) Requirement of common interest.--Section 3(2) of the 
     Employee Retirement Income Security Act of 1974 is amended by 
     adding at the end the following:
       ``(C)(i) A qualified multiple employer plan shall not fail 
     to be treated as an employee pension benefit plan or pension 
     plan solely because the employers sponsoring the plan share 
     no common interest.
       ``(ii) For purposes of this subparagraph, the term 
     `qualified multiple employer plan' means a plan described in 
     section 413(c) of the Internal Revenue Code of 1986 which--
       ``(I) is an individual account plan with respect to which 
     the requirements of clauses (iii), (iv), and (v) are met, and
       ``(II) includes in its annual report required to be filed 
     under section 104(a) the name and identifying information of 
     each participating employer.
       ``(iii) The requirements of this clause are met if, under 
     the plan, each participating employer retains fiduciary 
     responsibility for--
       ``(I) the selection and monitoring of the named fiduciary, 
     and
       ``(II) the investment and management of the portion of the 
     plan's assets attributable to employees of the employer to 
     the extent not otherwise delegated to another fiduciary.
       ``(iv) The requirements of this clause are met if, under 
     the plan, a participating employer is not subject to 
     unreasonable restrictions, fees, or penalties by reason of 
     ceasing participation in, or otherwise transferring assets 
     from, the plan.
       ``(v) The requirements of this clause are met if each 
     participating employer in the plan is an eligible employer as 
     defined in section 408(p)(2)(C)(i) of the Internal Revenue 
     Code of 1986, applied--
       ``(I) by substituting `500' for `100' in subclause (I) 
     thereof,
       ``(II) by substituting `5' for `2' each place it appears in 
     subclause (II) thereof, and
       ``(III) without regard to the last sentence of subclause 
     (II) thereof.''.
       (2) Simplified reporting for small multiple employer 
     plans.--Section 104(a) of such Act (29 U.S.C. 1024(a)) is 
     amended by adding at the end the following:
       ``(7)(A) In the case of any eligible small multiple 
     employer plan, the Secretary may by regulation--
       ``(i) prescribe simplified summary plan descriptions, 
     annual reports, and pension benefit statements for purposes 
     of section 102, 103, or 105, respectively, and
       ``(ii) waive the requirement under section 103(a)(3) to 
     engage an independent qualified public accountant in cases 
     where the Secretary determines it appropriate.
       ``(B) For purposes of this paragraph, the term `eligible 
     small multiple employer plan' means, with respect to any plan 
     year--
       ``(i) a qualified multiple employer plan, as defined in 
     section 3(2)(C)(ii), or
       ``(ii) any other plan described in section 413(c) of the 
     Internal Revenue Code of 1986 that satisfies the requirements 
     of clause (v) of section 3(2)(C).''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to years beginning after December 31, 2014.

     SEC. _04. SECURE DEFERRAL ARRANGEMENTS.

       (a) In General.--Subsection (k) of section 401 is amended 
     by adding at the end the following new paragraph:
       ``(14) Alternative method for secure deferral arrangements 
     to meet nondiscrimination requirements.--
       ``(A) In general.--A secure deferral arrangement shall be 
     treated as meeting the requirements of paragraph (3)(A)(ii).
       ``(B) Secure deferral arrangement.--For purposes of this 
     paragraph, the term `secure deferral arrangement' means any 
     cash or deferred arrangement which meets the requirements of 
     subparagraphs (C), (D), and (E) of paragraph (13), except as 
     modified by this paragraph.
       ``(C) Qualified percentage.--For purposes of this 
     paragraph, with respect to any employee, the term `qualified 
     percentage' means, in lieu of the meaning given such term in 
     paragraph (13)(C)(iii), any percentage determined under the 
     arrangement if such percentage is applied uniformly and is--
       ``(i) at least 6 percent, but not greater than 10 percent, 
     during the period ending on the last day of the first plan 
     year which begins after the date on which the first elective 
     contribution described in paragraph (13)(C)(i) is made with 
     respect to such employee,
       ``(ii) at least 8 percent during the first plan year 
     following the plan year described in clause (i), and
       ``(iii) at least 10 percent during any subsequent plan 
     year.
       ``(D) Matching contributions.--
       ``(i) In general.--For purposes of this paragraph, an 
     arrangement shall be treated as having met the requirements 
     of paragraph (13)(D)(i) if and only if the employer makes 
     matching contributions on behalf of each employee who is not 
     a highly compensated employee in an amount equal to the sum 
     of--

       ``(I) 100 percent of the elective contributions of the 
     employee to the extent that such contributions do not exceed 
     1 percent of compensation,
       ``(II) 50 percent of so much of such contributions as 
     exceed 1 percent but do not exceed 6 percent of compensation, 
     plus
       ``(III) 25 percent of so much of such contributions as 
     exceed 6 percent but do not exceed 10 percent of 
     compensation.

       ``(ii) Application of rules for matching contributions.--
     The rules of clause (ii) of paragraph (12)(B) and clauses 
     (iii) and (iv) of paragraph (13)(D) shall apply for purposes 
     of clause (i) but the rule of clause (iii) of paragraph 
     (12)(B) shall not apply for such purposes. The rate of 
     matching contribution for each incremental deferral must be 
     at least as high as the rate specified in clause (i), and may 
     be higher, so long as such rate does not increase as an 
     employee's rate of elective contributions increases.''.
       (b) Matching Contributions and Employee Contributions.--
     Subsection (m) of section 401 is amended by redesignating 
     paragraph (13) as paragraph (14) and by inserting after 
     paragraph (12) the following new paragraph:
       ``(13) Alternative method for secure deferral 
     arrangements.--A defined contribution plan shall be treated 
     as meeting the requirements of paragraph (2) with respect to 
     matching contributions and employee contributions if the 
     plan--
       ``(A) is a secure deferral arrangement (as defined in 
     subsection (k)(14)),
       ``(B) meets the requirements of clauses (ii) and (iii) of 
     paragraph (11)(B), and

[[Page 8394]]

       ``(C) provides that matching contributions on behalf of any 
     employee may not be made with respect to an employee's 
     contributions or elective deferrals in excess of 10 percent 
     of the employee's compensation.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 2014.

     SEC. _05. CREDIT FOR EMPLOYERS WITH RESPECT TO MODIFIED SAFE 
                   HARBOR REQUIREMENTS.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 is amended by adding at the end the following new 
     section:

     ``SEC. 45S. CREDIT FOR SMALL EMPLOYERS WITH RESPECT TO 
                   MODIFIED SAFE HARBOR REQUIREMENTS FOR AUTOMATIC 
                   CONTRIBUTION ARRANGEMENTS.

       ``(a) General Rule.--For purposes of section 38, in the 
     case of a small employer, the safe harbor adoption credit 
     determined under this section for any taxable year is the 
     amount equal to the total of the employer's matching 
     contributions under section 401(k)(14)(D) during the taxable 
     year on behalf of employees who are not highly compensated 
     employees, subject to the limitations of subsection (b).
       ``(b) Limitations.--
       ``(1) Limitation with respect to compensation.--The credit 
     determined under subsection (a) with respect to contributions 
     made on behalf of an employee who is not a highly compensated 
     employee shall not exceed 2 percent of the compensation of 
     such employee for the taxable year.
       ``(2) Limitation with respect to years of participation.--
     Credit shall be determined under subsection (a) with respect 
     to contributions made on behalf of an employee who is not a 
     highly compensated employee only during the first 5 years 
     such employee participates in the qualified automatic 
     contribution arrangement.
       ``(c) Definitions.--
       ``(1) In general.--Any term used in this section which is 
     also used in section 401(k)(14) shall have the same meaning 
     as when used in such section.
       ``(2) Small employer.--The term `small employer' means an 
     eligible employer (as defined in section 408(p)(2)(C)(i)).
       ``(d) Denial of Double Benefit.--No deduction shall be 
     allowable under this title for any contribution with respect 
     to which a credit is allowed under this section.''.
       (b) Credit To Be Part of General Business Credit.--
     Subsection (b) of section 38, as amended by sections 208(f) 
     and 221(a)(2)(B) of this Act, is amended--
       (1) by striking ``plus'' at the end of paragraph (35),
       (2) by striking the period at the end of paragraph (36) and 
     inserting ``, plus'', and
       (3) by adding at the end the following new paragraph:
       ``(37) the safe harbor adoption credit determined under 
     section 45S.''.
       (c) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 is amended by 
     adding after the item relating to section 45R the following 
     new item:

``Sec. 45S. Credit for small employers with respect to modified safe 
              harbor requirements for automatic contribution 
              arrangements.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years that include any portion of a 
     plan year beginning after December 31, 2014.

     SEC. _06. MODIFICATION OF REGULATIONS.

       The Secretary of the Treasury shall promulgate regulations 
     or other guidance that--
       (1) simplify and clarify the rules regarding the timing of 
     participant notices required under section 401(k)(13)(E) of 
     the Internal Revenue Code of 1986, with specific application 
     to--
       (A) plans that allow employees to be eligible for 
     participation immediately upon beginning employment, and
       (B) employers with multiple payroll and administrative 
     systems, and
       (2) simplify and clarify the automatic escalation rules 
     under sections 401(k)(13)(C)(iii) and 401(k)(14)(C) of the 
     Internal Revenue Code of 1986 in the context of employers 
     with multiple payroll and administrative systems.

     Such regulations or guidance shall address the particular 
     case of employees within the same plan who are subject to 
     different notice timing and different percentage 
     requirements, and provide assistance for plan sponsors in 
     managing such cases.

     SEC. _07. OPPORTUNITY TO CLAIM THE SAVER'S CREDIT ON FORM 
                   1040EZ.

       The Secretary of the Treasury shall modify the forms for 
     the return of tax of individuals in order to allow 
     individuals claiming the credit under section 25B of the 
     Internal Revenue Code of 1986 to file (and claim such credit 
     on) Form 1040EZ.
                                 ______
                                 
  SA 3196. Ms. COLLINS (for herself, Mr. Scott, Mr. Isakson, Ms. 
Murkowski, Ms. Ayotte, Mr. Graham, Mr. Blunt, Mr. Crapo, Mr. Boozman, 
and Mr. Donnelly) submitted an amendment intended to be proposed by her 
to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to 
allow employers to exempt employees with health coverage under TRICARE 
or the Veterans Administration from being taken into account for 
purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                       TITLE __--OTHER PROVISIONS

     SEC. _01. DEFINITION OF FULL-TIME EMPLOYEE.

       (a) In General.--Section 4980H(c) is amended--
       (1) in paragraph (2)(E), by striking ``by 120'' and 
     inserting ``by 120 (174 in the case of months before calendar 
     year 2017)''; and
       (2) in paragraph (4)(A) by striking ``30 hours'' and 
     inserting ``30 hours (40 hours in the case of months before 
     calendar year 2017)''.
                                 ______
                                 
  SA 3197. Ms. COLLINS (for herself and Mr. Schumer) submitted an 
amendment intended to be proposed to amendment SA 3060 proposed by Mr. 
Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                       TITLE __--OTHER PROVISIONS

     SEC. _01. BENEFITS PROVIDED TO VOLUNTEER FIREFIGHTERS AND 
                   EMERGENCY MEDICAL RESPONDERS.

       (a) Increase in Dollar Limitation on Qualified Payments.--
     Subparagraph (B) of section 139B(c)(2) is amended by striking 
     ``$30'' and inserting ``$50''.
       (b) Extension.--Subsection (d) of section 139B is amended 
     by striking ``beginning after December 31, 2010.'' and 
     inserting ``beginning--
       ``(1) after December 31, 2010, and before January 1, 2014, 
     or
       ``(2) after December 31, 2016.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.
                                 ______
                                 
  SA 3198. Ms. COLLINS (for herself, Mr. Schumer, Mr. Cardin, and Mrs. 
Gillibrand) submitted an amendment intended to be proposed by her to 
the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow 
employers to exempt employees with health coverage under TRICARE or the 
Veterans Administration from being taken into account for purposes of 
the employer mandate under the Patient Protection and Affordable Care 
Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                       TITLE __--OTHER PROVISIONS

     SEC. _01. ELECTIVE TREATMENT OF LENGTH OF SERVICE AWARD 
                   PROGRAMS AS ELIGIBLE DEFERRED COMPENSATION 
                   PLANS.

       (a) In General.--Section 457(e) is amended by adding at the 
     end the following new paragraph:
       ``(19) Special rules applicable to length of service award 
     plans.--
       ``(A) In general.--The term `eligible deferred compensation 
     plan' shall include, at the election of its sponsor, any 
     length of service award plan. Any such election shall be 
     irrevocable. In the case of a length of service award plan 
     whose sponsor has elected to have such plan treated as an 
     eligible deferred compensation plan, such plan shall be 
     administered in a manner consistent with the requirements of 
     this section and such sponsor shall be treated as an eligible 
     employer described in paragraph (1)(A).
       ``(B) Length of service award plan.--For purposes of this 
     paragraph--
       ``(i) In general.--The term `length of service award plan' 
     means any plan paying solely length of service awards to bona 
     fide volunteers (or their beneficiaries) on account of 
     qualified services performed by such volunteers.
       ``(ii) Bona fide volunteer.--An individual shall be treated 
     as a bona fide volunteer if the only compensation received by 
     such individual for performing qualified services is in the 
     form of--

       ``(I) reimbursement for (or a reasonable allowance for) 
     reasonable expenses incurred in the performance of such 
     services, or
       ``(II) reasonable benefits (including length of service 
     awards), and fees for such services, customarily paid by 
     eligible employers in connection with the performance of such 
     services by volunteers.

       ``(iii) Qualified services.--The term `qualified services' 
     means firefighting and prevention services, emergency medical 
     services, ambulance services, and emergency rescue services.

[[Page 8395]]

       ``(C) Maximum deferral amount.--In the case of a length of 
     service award plan whose sponsor has elected to have such 
     plan treated as an eligible deferred compensation plan, 
     subsection (b)(2) shall be applied by striking `the lesser 
     of--' and all that follows and inserting `the applicable 
     dollar amount,'.
       ``(D) Distribution requirements.--In the case of a length 
     of service award plan whose sponsor has elected to have such 
     plan treated as an eligible deferred compensation plan, 
     subsection (d)(1)(A)(ii) shall be applied by deeming a 
     severance from employment to have occurred at the later of--
       ``(i) the payment date under the terms of the plan, or
       ``(ii) the date on which the plan participant ceases to 
     perform qualified services.
       ``(E) Limitation on accruals.--
       ``(i) In general.--In the case of a length of service award 
     plan that is a defined benefit plan (as defined in section 
     414(j)) whose sponsor has not elected to have such plan 
     treated as an eligible deferred compensation plan, such plan 
     shall be treated as not providing for the deferral of 
     compensation if the aggregate amount of length of service 
     awards accruing with respect to any year of service for any 
     bona fide volunteer does not exceed $5,500. In the case of a 
     length of service award plan described in the preceding 
     sentence that is a defined benefit plan (as defined in 
     section 414(j)), the limitation on the annual deferral shall 
     apply to the actuarial present value of the aggregate amount 
     of length of service awards accruing with respect to any year 
     of service. Such actuarial present value shall be calculated 
     using reasonable actuarial assumptions and methods assuming 
     payment shall be made under the most valuable form of payment 
     of the length of service award under the program with payment 
     commencing at the later of the earliest age at which 
     unreduced benefits are payable under the program or the 
     participant's current age.
       ``(ii) Cost-of-living adjustment.--In the case of taxable 
     years beginning after December 31, 2014, the Secretary shall 
     adjust the $5,500 amount under clause (i) at the same time 
     and in the same manner as under section 415(d), except that 
     the base period shall be the calendar quarter beginning July 
     1, 2013, and any increase under this paragraph that is not a 
     multiple of $500 shall be rounded to the next lowest multiple 
     of $500.''.
       (b) Conforming Amendments.--
       (1) Section 457(e)(11) is amended to read as follows:
       ``(11) Certain plans excluded.--Any bona fide vacation 
     leave, sick leave, compensatory time, severance pay, 
     disability pay, or death benefit plan shall be treated as not 
     providing for the deferral of compensation.''.
       (2) Section 3121(a)(5)(I) is amended by striking ``section 
     457(e)(11)(A)(ii)'' and inserting ``section 457(e)(19)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.
       (d) Exemption of Length of Service Award Programs From the 
     Employee Retirement Income Security Act of 1974.--The 
     Secretary of Labor shall issue guidance clarifying that a 
     length of service award program described in section 
     457(e)(19) of the Internal Revenue Code of 1986 is not an 
     employee pension benefit plan under section 3(2) of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1002(2)).
                                 ______
                                 
  SA 3199. Ms. COLLINS submitted an amendment intended to be proposed 
by her to the bill H.R. 3474, to amend the Internal Revenue Code of 
1986 to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                       TITLE __--OTHER PROVISIONS

     SEC. _01. NOTIFICATION OF CONGRESS REGARDING VIOLATIONS OF 
                   TAXPAYERS' CONSTITUTIONAL RIGHTS.

       (a) In General.--Section 7802(f)(3) is amended by adding at 
     the end the following new subparagraph:
       ``(C) Constitutional rights of taxpayers.--For purposes of 
     the annual report required under subparagraph (A), the 
     Oversight Board shall include the following information:
       ``(i) Any claim filed during the preceding year by a 
     taxpayer alleging, with respect to such taxpayer, a violation 
     of any right under the Constitution of the United States by 
     an employee of the Internal Revenue Service.
       ``(ii) For purposes of each claim described in clause (i)--

       ``(I) whether a final administrative or judicial 
     determination on such claim has been reached, and
       ``(II) subject to section 1203 of the Internal Revenue 
     Service Restructuring and Reform Act of 1998, whether the 
     employment of any employee of the Internal Revenue Service 
     determined to be liable for such violation has been 
     terminated or, for any personnel action other than 
     termination of such employee, the reasons provided by the 
     Commissioner of Internal Revenue for such determination.

       ``(iii) The effectiveness of any procedures and measures 
     established by the Internal Revenue Service to prevent 
     discrimination by any employee of the Internal Revenue 
     Service against any taxpayer on the basis of the political 
     affiliation, beliefs, or activities of such taxpayer.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.
                                 ______
                                 
  SA 3200. Ms. COLLINS (for herself and Mr. Casey) submitted an 
amendment intended to be proposed to amendment SA 3060 proposed by Mr. 
Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       Beginning on page 32, strike line 12 and all that follows 
     through page 35, line 10, and insert the following:

     SEC. 127. PERMANENT EXTENSION OF EXPENSING LIMITATION.

       (a) Dollar Limitation.--Section 179(b)(1) is amended by 
     striking ``shall not exceed'' and all that follows and 
     inserting ``shall not exceed $250,000.''.
       (b) Reduction in Limitation.--Section 179(b)(2) of such 
     Code is amended by striking ``exceeds'' and all that follows 
     and inserting ``exceeds $800,000.''.
       (c) Inflation Adjustment.--Subsection (b) of section 179 of 
     such Code is amended by adding at the end the following new 
     paragraph:
       ``(6) Inflation adjustment.--
       ``(A) In general.--In the case of any taxable year 
     beginning in a calendar year after 2014, the $250,000 in 
     paragraph (1) and the $800,000 amount in paragraph (2) shall 
     each be increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, by substituting `calendar year 2013' for 
     `calendar year 1992' in subparagraph (B) thereof.
       ``(B) Rounding.--
       ``(i) Dollar limitation.--If the amount in paragraph (1) as 
     increased under subparagraph (A) is not a multiple of $1,000, 
     such amount shall be rounded to the nearest multiple of 
     $1,000.
       ``(ii) Phaseout amount.--If the amount in paragraph (2) as 
     increased under subparagraph (A) is not a multiple of 
     $10,000, such amount shall be rounded to the nearest multiple 
     of $10,000.''.
       (d) Computer Software.--Section 179(d)(1)(A)(ii) of such 
     Code is amended by striking ``and before 2014''.
       (e) Election.--Section 179(c)(2) of such Code is amended by 
     striking ``and before 2014''.
       (f) Special Rules for Treatment of Qualified Real 
     Property.--
       (1) In general.--Section 179(f)(1) of such Code is amended 
     by striking ``beginning in 2010, 2011, 2012, or 2013'' and 
     inserting ``beginning after 2009''.
       (2) Conforming amendment.--Section 179(f) of such Code is 
     amended by striking paragraph (4).
       (g) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.
       At the appropriate place, insert the following:

                       TITLE __--OTHER PROVISIONS

     SEC. _01. PERMANENT DOUBLING OF DEDUCTIONS FOR START-UP 
                   EXPENSES, ORGANIZATIONAL EXPENSES, AND 
                   SYNDICATION FEES.

       (a) Start-Up Expenses.--
       (1) In general.--Clause (ii) of section 195(b)(1)(A) is 
     amended--
       (A) by striking ``$5,000'' and inserting ``$10,000'', and
       (B) by striking ``$50,000'' and inserting ``$60,000''.
       (2) Conforming amendment.--Subsection (b) of section 195 is 
     amended by striking paragraph (3).
       (b) Organizational Expenses.--Subparagraph (B) of section 
     248(a)(1) is amended--
       (1) by striking ``$5,000'' and inserting ``$10,000'', and
       (2) by striking ``$50,000'' and inserting ``$60,000''.
       (c) Organization and Syndication Fees.--Clause (ii) of 
     section 709(b)(1)(A) is amended--
       (1) by striking ``$5,000'' and inserting ``$10,000'', and
       (2) by striking ``$50,000'' and inserting ``$60,000''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred in taxable years 
     ending on or after the date of the enactment of this Act.

     SEC. _02. CLARIFICATION OF CASH ACCOUNTING RULES FOR SMALL 
                   BUSINESS.

       (a) Cash Accounting Permitted.--
       (1) In general.--Section 446 is amended by adding at the 
     end the following new subsection:

[[Page 8396]]

       ``(g) Certain Small Business Taxpayers Permitted To Use 
     Cash Accounting Method Without Limitation.--
       ``(1) In general.--An eligible taxpayer shall not be 
     required to use an accrual method of accounting for any 
     taxable year.
       ``(2) Eligible taxpayer.--For purposes of this subsection, 
     a taxpayer is an eligible taxpayer with respect to any 
     taxable year if--
       ``(A) for all prior taxable years beginning after December 
     31, 2013, the taxpayer (or any predecessor) met the gross 
     receipts test of section 448(c), and
       ``(B) the taxpayer is not subject to section 447 or 448.''.
       (2) Expansion of gross receipts test.--
       (A) In general.--Paragraph (3) of section 448(b) is amended 
     by striking ``$5,000,000'' in the text and in the heading and 
     inserting ``$10,000,000''.
       (B) Conforming amendments.--Section 448(c) is amended--
       (i) by striking ``$5,000,000'' each place it appears in the 
     text and in the heading of paragraph (1) and inserting 
     ``$10,000,000'', and
       (ii) by adding at the end the following new paragraph:
       ``(4) Inflation adjustment.--In the case of any taxable 
     year beginning in a calendar year after 2014, the dollar 
     amount contained in subsection (b)(3) and paragraph (1) of 
     this subsection 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, by substituting `calendar year 2013' for 
     `calendar year 1992' in subparagraph (B) thereof.
     If any amount as adjusted under this subparagraph is not a 
     multiple of $100,000, such amount shall be rounded to the 
     nearest multiple of $100,000.''.
       (b) Clarification of Inventory Rules for Small Business.--
       (1) In general.--Section 471 is amended by redesignating 
     subsection (c) as subsection (d) and by inserting after 
     subsection (b) the following new subsection:
       ``(c) Small Business Taxpayers Not Required To Use 
     Inventories.--
       ``(1) In general.--A qualified taxpayer shall not be 
     required to use inventories under this section for a taxable 
     year.
       ``(2) Treatment of taxpayers not using inventories.--If a 
     qualified taxpayer does not use inventories with respect to 
     any property for any taxable year beginning after December 
     31, 2013, such property shall be treated as a material or 
     supply which is not incidental.
       ``(3) Qualified taxpayer.--For purposes of this subsection, 
     the term `qualified taxpayer' means--
       ``(A) any eligible taxpayer (as defined in section 
     446(g)(2)), and
       ``(B) any taxpayer described in section 448(b)(3).''.
       (2) Increased eligibility for simplified dollar-value lifo 
     method.--Section 474(c) is amended by striking ``$5,000,000'' 
     and inserting ``the dollar amount in effect under section 
     448(c)(1)''.
       (c) Effective Date and Special Rules.--
       (1) In general.--The amendments made by this section shall 
     apply to taxable years beginning after December 31, 2013.
       (2) Change in method of accounting.--In the case of any 
     taxpayer changing the taxpayer's method of accounting for any 
     taxable year under the amendments made by this section--
       (A) such change shall be treated as initiated by the 
     taxpayer;
       (B) such change shall be treated as made with the consent 
     of the Secretary of the Treasury; and
       (C) the net amount of the adjustments required to be taken 
     into account by the taxpayer under section 481 of the 
     Internal Revenue Code of 1986 shall be taken into account 
     over a period (not greater than 4 taxable years) beginning 
     with such taxable year.
                                 ______
                                 
  SA 3201. Mr. BENNET (for himself, Mr. Merkley, and Mr. Markey) 
submitted an amendment intended to be proposed to amendment SA 3060 
proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal 
Revenue Code of 1986 to allow employers to exempt employees with health 
coverage under TRICARE or the Veterans Administration from being taken 
into account for purposes of the employer mandate under the Patient 
Protection and Affordable Care Act; which was ordered to lie on the 
table; as follows:

       On page 53, between lines 3 and 4, insert the following:

     SEC. 158. EXTENSION OF ENERGY CREDIT FOR CERTAIN PROPERTY 
                   UNDER CONSTRUCTION.

       (a) Solar Energy Property.--Paragraphs (2)(A)(i)(II) and 
     (3)(A)(ii) of section 48(a) are each amended by striking 
     ``periods ending'' and inserting ``property the construction 
     of which begins''.
       (b) Qualified Fuel Cell Property.--Section 48(c)(1)(D) is 
     amended by striking ``for any period after December 31, 
     2016'' and inserting ``the construction of which does not 
     begin before January 1, 2017''.
       (c) Qualified Microturbine Property.--Section 48(c)(2)(D) 
     is amended by striking ``for any period after December 31, 
     2016'' and inserting ``the construction of which does not 
     begin before January 1, 2017''.
       (d) Combined Heat and Power System Property.--Section 
     48(c)(3)(A)(iv) is amended by striking ``which is placed in 
     service'' and inserting ``construction of which begins''.
       (e) Qualified Small Wind Energy Property.--Section 
     48(c)(4)(C) is amended by striking ``for any period after 
     December 31, 2016'' and inserting ``the construction of which 
     does not begin before January 1, 2017''.
       (f) Thermal Energy Property.--Section 48(a)(3)(A)(vii)is 
     amended by striking ``periods ending'' and inserting 
     ``property the construction of which begins''.
       (g) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.
                                 ______
                                 
  SA 3202. Mr. REED (for himself and Mr. Durbin) submitted an amendment 
intended to be proposed by him to the bill H.R. 3474, to amend the 
Internal Revenue Code of 1986 to allow employers to exempt employees 
with health coverage under TRICARE or the Veterans Administration from 
being taken into account for purposes of the employer mandate under the 
Patient Protection and Affordable Care Act; which was ordered to lie on 
the table; as follows:

       At the end, add the following:

              TITLE _--UNEMPLOYMENT COMPENSATION EXTENSION

     SEC. _01. SHORT TITLE.

       This title may be cites as the ``Emergency Unemployment 
     Compensation Extension Act of 2014''.

     SEC. _02. 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 1, 2014'' and 
     inserting ``January 1, 2015''.
       (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 (I), by striking ``and'' at the end;
       (2) in subparagraph (J), by inserting ``and'' at the end; 
     and
       (3) by inserting after subparagraph (J) the following:
       ``(K) the amendment made by section _02(a) of the Emergency 
     Unemployment Compensation Extension Act of 2014;''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as if included in the enactment of the 
     American Taxpayer Relief Act of 2012 (Public Law 112-240).

     SEC. _03. 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, 2013'' each place it appears 
     and inserting ``December 31, 2014''; and
       (2) in subsection (c), by striking ``June 30, 2014'' and 
     inserting ``June 30, 2015''.
       (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, 2014'' and inserting ``June 
     30, 2015''.
       (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, 2013'' 
     and inserting ``December 31, 2014''; and
       (2) in subsection (f)(2), by striking ``December 31, 2013'' 
     and inserting ``December 31, 2014''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect as if included in the enactment of the 
     American Taxpayer Relief Act of 2012 (Public Law 112-240).

     SEC. _04. EXTENSION OF FUNDING FOR REEMPLOYMENT SERVICES AND 
                   REEMPLOYMENT AND ELIGIBILITY ASSESSMENT 
                   ACTIVITIES.

       (a) Extension.--
       (1) 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 2014'' and 
     inserting ``through fiscal year 2015''.
       (2) Effective date.--The amendment made by this subsection 
     shall take effect as if included in the enactment of the 
     American Taxpayer Relief Act of 2012 (Public Law 112-240).
       (b) Timing for Services and Activities.--
       (1) In general.--Section 4001(i)(1)(A) of the Supplemental 
     Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
     note) is amended by adding at the end the following new 
     sentence:

     ``At a minimum, such reemployment services and reemployment 
     and eligibility assessment activities shall be provided to an 
     individual within a time period (determined appropriate by 
     the Secretary) after the date

[[Page 8397]]

     the individual begins to receive amounts under section 
     4002(b) (first tier benefits) and, if applicable, again 
     within a time period (determined appropriate by the 
     Secretary) after the date the individual begins to receive 
     amounts under section 4002(d) (third tier benefits).''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply on and after the date of the enactment of this 
     Act.
       (c) Purposes of Services and Activities.--The purposes of 
     the reemployment services and reemployment and eligibility 
     assessment activities under section 4001(i) of the 
     Supplemental Appropriations Act, 2008 (Public Law 110-252; 26 
     U.S.C. 3304 note) are--
       (1) to better link the unemployed with the overall 
     workforce system by bringing individuals receiving 
     unemployment insurance benefits in for personalized 
     assessments and referrals to reemployment services; and
       (2) to provide individuals receiving unemployment insurance 
     benefits with early access to specific strategies that can 
     help get them back into the workforce faster, including 
     through--
       (A) the development of a reemployment plan;
       (B) the provision of access to relevant labor market 
     information;
       (C) the provision of access to information about industry-
     recognized credentials that are regionally relevant or 
     nationally portable;
       (D) the provision of referrals to reemployment services and 
     training; and
       (E) an assessment of the individual's on-going eligibility 
     for unemployment insurance benefits.

     SEC. _05. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER THE 
                   RAILROAD UNEMPLOYMENT INSURANCE ACT.

       (a) Extension.--Section 2(c)(2)(D)(iii) of the Railroad 
     Unemployment Insurance Act (45 U.S.C. 352(c)(2)(D)(iii)) is 
     amended--
       (1) by striking ``June 30, 2013'' and inserting ``June 30, 
     2014''; and
       (2) by striking ``December 31, 2013'' and inserting 
     ``December 31, 2014''.
       (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.

     SEC. _06. FLEXIBILITY FOR UNEMPLOYMENT PROGRAM AGREEMENTS.

       (a) Flexibility.--
       (1) In general.--Subsection (g) of section 4001 of the 
     Supplemental Appropriations Act, 2008 (Public Law 110-252; 26 
     U.S.C. 3304 note) shall not apply with respect to a State 
     that has enacted a law before December 1, 2013, that, upon 
     taking effect, would violate such subsection.
       (2) Effective date.--Paragraph (1) is effective with 
     respect to weeks of unemployment beginning on or after 
     December 29, 2013.
       (b) Permitting a Subsequent Agreement.--Nothing in title IV 
     of the Supplemental Appropriations Act, 2008 (Public Law 110-
     252; 26 U.S.C. 3304 note) shall preclude a State whose 
     agreement under such title was terminated from entering into 
     a subsequent agreement under such title on or after the date 
     of the enactment of this Act if the State, taking into 
     account the application of subsection (a), would otherwise 
     meet the requirements for an agreement under such title.

     SEC. 7. IMPLEMENTATION.

       The Secretary of Labor shall prescribe such rules and 
     regulations as the Secretary determines are necessary to 
     carry out the provisions of, and the amendments made by, this 
     title.
                                 ______
                                 
  SA 3203. Mr. CARDIN (for himself, Mr. Brown, Mr. Rockefeller, Ms. 
Mikulski, Ms. Heitkamp, Ms. Warren, Mr. Levin, Mrs. Murray, Mr. 
Whitehouse, Mr. Durbin, Mr. Leahy, and Mr. Franken) submitted an 
amendment intended to be proposed to amendment SA 3060 proposed by Mr. 
Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       Beginning on page 64, strike line 5 and all that follows 
     through page 75, line 10.
                                 ______
                                 
  SA 3204. Ms. MURKOWSKI (for herself and Mr. Begich) submitted an 
amendment intended to be proposed by her to the bill H.R. 3474, to 
amend the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the end, add the following:

                  TITLE--EXTENSION OF OTHER PROVISIONS

     SEC. _01. EXTENSION OF CREDIT FOR THE PRODUCTION OF LOW 
                   SULFUR DIESEL FUEL.

       (a) In General.--Paragraph (4) of section 45H(c) is amended 
     by striking ``earlier of the date which is 1 year after the 
     date'' and inserting ``later of the date''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to expenses paid or incurred after December 31, 
     2009, in taxable years ending after such date.
                                 ______
                                 
  SA 3205. Mr. TOOMEY submitted an amendment intended to be proposed to 
amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend 
the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                        TITLE--OTHER PROVISIONS

     SEC. _01. EXEMPTION FOR CERTAIN BUREAU OF PRISONS 
                   CORRECTIONAL OFFICERS FROM TAX ON EARLY 
                   DISTRIBUTIONS.

       (a) In General.--Subsection (t) of section 72 is amended by 
     adding at the end the following new paragraph:
       ``(11) Distributions to qualified federal correctional 
     officers from the thrift savings fund.--
       ``(A) In general.--In the case of a distribution to a 
     qualified Federal correctional officer from the Thrift 
     Savings Fund established under section 8437 of title 5, 
     United States Code, paragraph (2)(A)(v) of this subsection 
     shall be applied by substituting `age 50 (or, if earlier, the 
     age at which the employee has completed 25 years of 
     creditable service)' for `age 55'.
       ``(B) Qualified federal correctional officer.--For purposes 
     of this paragraph, the term `qualified Federal correctional 
     officer' means an individual--
       ``(i) who is employed by the Bureau of Prisons as a 
     correctional officer, and
       ``(ii) who has completed 20 years of creditable service.
       ``(C) Creditable service.--For purposes of this paragraph, 
     the term `creditable service' means creditable service under 
     section 8331 or 8411 of title 5, United States Code.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to distributions made after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 3206. Mr. COATS submitted an amendment intended to be proposed by 
him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the appropriate place, add the following:

                        TITLE--OTHER PROVISIONS

     SEC. _01. RESTORATION OF TAX RELIEF FOR FAMILIES WITH 
                   CATASTROPHIC MEDICAL EXPENSES.

       (a) In General.--Subsection (a) of section 213 is amended 
     by striking ``10 percent'' and inserting ``7.5 percent''.
       (b) Conforming Amendments.--
       (1) Section 213 is amended by striking subsection(f).
       (2) Section 56(b)(1)(B) is amended by striking ``without 
     regard to subsection (f) of such section'' and inserting ``by 
     substituting `10 percent' for `7.5 percent'''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.
                                 ______
                                 
  SA 3207. Mr. COATS submitted an amendment intended to be proposed by 
him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being

[[Page 8398]]

taken into account for purposes of the employer mandate under the 
Patient Protection and Affordable Care Act; which was ordered to lie on 
the table; as follows:

       At the appropriate place, add the following:

                        TITLE--OTHER PROVISIONS

     SEC. _01. NOTICE REQUIRED BEFORE REVOCATION OF TAX EXEMPT 
                   STATUE FOR FAILURE TO FILE RETURN.

       (a) In General.--Section 6033(j) is amended by 
     redesignating paragraphs (2) and (3) as paragraphs (3) and 
     (4), respectively, and by inserting after paragraph (1) the 
     following new paragraph:
       ``(2) Requirement of notice.--
       ``(A) In general.--Not later than 300 days after the date 
     an organization described in paragraph (1) fails to file the 
     annual return or notice referenced in paragraph (1) for 2 
     consecutive years, the Secretary shall notify the 
     organization--
       ``(i) that the Internal Revenue Service has no record of 
     such a return or notice from such organization for 2 
     consecutive years, and
       ``(ii) about the penalty that will occur under this 
     subsection if the organization fails to file such a return or 
     notice by the date of the next filing deadline.
     The notification under the preceding sentence shall include 
     information about how to comply with the filing requirements 
     under subsection (a)(1) and (i).''.
       (b) Reinstatement Without Application.--Paragraph (3) of 
     section 6033(j), as redesignated under subsection (a), is 
     amended--
       (1) by striking ``Any organization'' and inserting the 
     following:
       ``(A) In general.--Except as provided in subparagraph (B), 
     any organization'', and
       (2) by adding at the end the following new subparagraph:
       ``(B) Retroactive reinstatement without application if 
     actual notice not provided.--If an organization described in 
     paragraph (1)--
       ``(i) demonstrates to the satisfaction of the Secretary 
     that the organization did not receive the notice required 
     under paragraph (2), and
       ``(ii) files an annual return or notice referenced in 
     paragraph (1) for the current year,

     then the Secretary may reinstate the organization's exempt 
     status effective from the date of the revocation under 
     paragraph (1) without the need for an application.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to notices and returns required to be filed after 
     December 31, 2014.
                                 ______
                                 
  SA 3208. Mr. INHOFE submitted an amendment intended to be proposed to 
amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend 
the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                        TITLE--OTHER PROVISIONS

     SEC. ___. ELIMINATION OF TAXABLE INCOME LIMIT ON PERCENTAGE 
                   DEPLETION FOR OIL AND NATURAL GAS PRODUCED FROM 
                   MARGINAL PROPERTIES.

       (a) In General.--Subparagraph (H) of section 613A(c)(6) is 
     amended to read as follows:
       ``(H) Nonapplication of taxable income limit with respect 
     to marginal production.--The second sentence of subsection 
     (a) of section 613 shall not apply to so much of the 
     allowance for depletion as is determined under subparagraph 
     (A) for any taxable year beginning after December 31, 2013, 
     and before January 1, 2016.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.
       (c) Rescission of Funds.--The available unobligated balance 
     of any amounts that are appropriated for fiscal year 2013 are 
     rescinded, to the extent such amounts do not exceed the 
     reduction in revenues to the Treasury by reason of the 
     amendment made by subsection (a).
                                 ______
                                 
  SA 3209. Mr. CASEY (for himself and Ms. Landrieu) submitted an 
amendment intended to be proposed to amendment SA 3060 proposed by Mr. 
Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the end, add the following:

           TITLE--INLAND WATERWAYS TRUST FUND FINANCING RATE

     SEC. _01. REVISION TO THE INLAND WATERWAYS TRUST FUND 
                   FINANCING RATE.

       (a) In General.--Subparagraph (A) of section 4042(b)(2), as 
     amended by section 221, is amended to read as follows:
       ``(A) The Inland Waterways Trust Fund financing rate is 29 
     cents per gallon.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to uses during calendar quarters beginning more 
     than 60 days after the date of the enactment of this Act.
                                 ______
                                 
  SA 3210. Mr. CASEY (for himself and Mr. Cornyn) submitted an 
amendment intended to be proposed to amendment SA 3060 proposed by Mr. 
Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       Strike section 122 and insert the following:

     SEC. 122. PERMANENT EXTENSION OF 15-YEAR STRAIGHT-LINE COST 
                   RECOVERY FOR QUALIFIED LEASEHOLD IMPROVEMENTS, 
                   QUALIFIED RESTAURANT BUILDINGS AND 
                   IMPROVEMENTS, AND QUALIFIED RETAIL 
                   IMPROVEMENTS.

       (a) Qualified Leasehold Improvement Property.--Clause (iv) 
     of section 168(e)(3)(E) is amended by striking ``placed in 
     service before January 1, 2014''.
       (b) Qualified Restaurant Property.--Clause (v) of section 
     168(e)(3)(E) is amended by striking ``placed in service 
     before January 1, 2014''.
       (c) Qualified Retail Improvement Property.--Clause (ix) of 
     section 168(e)(3)(E) is amended by striking ``, and before 
     January 1, 2014''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2013.
                                 ______
                                 
  SA 3211. Mr. UDALL of Colorado (for himself, Mr. Blunt, Mrs. Shaheen, 
and Mr. Begich) submitted an amendment intended to be proposed to 
amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend 
the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

            TITLE __--BREWERS EXCISE TAX AND ECONOMIC RELIEF

     SEC. _01. REPEAL OF 1990 TAX INCREASE ON BEER.

       (a) Repeal of 1990 Tax Increase on Beer.--Paragraph (1) of 
     section 5051(a) is amended by striking ``$18'' and inserting 
     ``$9''.
       (b) Tax Relief for Small Breweries.--Subparagraph (A) of 
     section 5051(a)(2) is amended to read as follows:
       ``(A) Rate per barrel for qualifying brewers.--In the case 
     of a brewer who produces not more than 2,000,000 barrels of 
     beer during the calendar year, the per barrel rate of the tax 
     imposed by this section on the first 60,000 barrels of beer 
     which are removed in such year for consumption or sale and 
     which have been brewed or produced by such brewer at 
     qualified breweries in the United States shall be as follows:
       ``(i) For the first 15,000 barrels removed, $0.
       ``(ii) For the next 45,000 barrels removed after the barrel 
     quantity specified in clause (i), $3.50.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.
                                 ______
                                 
  SA 3212. Ms. KLOBUCHAR submitted an amendment intended to be proposed 
to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to 
amend the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                        TITLE--OTHER PROVISIONS

     SEC. _01. CONSUMER RENEWABLE CREDIT.

       (a) Business Credit.--
       (1) In general.--Subpart D of part IV of subchapter A of 
     chapter 1 is amended by adding at the end the following new 
     section:

[[Page 8399]]



     ``SEC. 45S. CONSUMER RENEWABLE CREDIT.

       ``(a) General Rule.--For purposes of section 38, in the 
     case of an eligible taxpayer, the consumer renewable credit 
     for any taxable year is an amount equal to the product of--
       ``(1) the renewable portfolio factor of such eligible 
     taxpayer, and
       ``(2) subject to subsection (e), the number of kilowatt 
     hours of renewable electricity--
       ``(A) purchased or produced by such taxpayer, and
       ``(B) sold by such taxpayer to a retail customer during the 
     taxable year.
       ``(b) Renewable Portfolio Factor.--In the case of taxable 
     years beginning before January 1, 2019, the renewable 
     portfolio factor for an eligible taxpayer shall be determined 
     as follows:

------------------------------------------------------------------------
                                                          Renewable
       ``Renewable electricity   percentage:          portfolio factor:
------------------------------------------------------------------------
Less than 6 percent................................           zero cents
At least 6 percent but less than 8 percent.........            0.1 cents
At least 8 percent but less than 12 percent........            0.2 cents
At least 12 percent but less than 16 percent.......            0.3 cents
At least 16 percent but less than 20 percent.......            0.4 cents
At least 20 percent but less than 24 percent.......            0.5 cents
Equal to or greater than 24 percent................           0.6 cents.
------------------------------------------------------------------------

       ``(c) Definitions and Special Rules.--For purposes of this 
     section--
       ``(1) Eligible taxpayer.--The term `eligible taxpayer' 
     means an electric utility, as defined in section 3(22) of the 
     Federal Power Act (16 U.S.C. 796(22)).
       ``(2) Renewable electricity.--The term `renewable 
     electricity' means electricity generated by any facility 
     using wind or solar energy to generate such electricity.
       ``(3) Renewable electricity percentage.--The term 
     `renewable electricity percentage' means the percentage of an 
     eligible taxpayer's total sales of electricity to retail 
     customers which is derived from renewable electricity 
     (determined without regard to whether such electricity was 
     produced by the taxpayer).
       ``(4) Application of other rules.--For purposes of this 
     section, rules similar to the rules of paragraphs (1), (3), 
     and (5) of section 45(e) shall apply.
       ``(5) Credit allowed only with respect to one eligible 
     entity.--No credit shall be allowed under subsection (a) with 
     respect to renewable electricity purchased from another 
     eligible entity if a credit has been allowed under this 
     section to such other eligible entity.
       ``(d) Coordination With Payments.--The amount of the credit 
     determined under this section with respect to any electricity 
     shall be reduced to take into account any payment provided 
     with respect to such electricity solely by reason of the 
     application of section 6433.
       ``(e) Renewable Electricity Enhancement.--
       ``(1) Native american wind and solar.--In the case of 
     renewable electricity generated by a wind or solar energy 
     facility which is located on an Indian reservation (as 
     defined in section 168(j)(6)), the number of kilowatt hours 
     of such renewable electricity shall, for purposes of 
     subsection (a)(2), be equal to 200 percent of the kilowatt 
     hours of such renewable electricity actually purchased or 
     produced and sold during the taxable year.
       ``(2) Electric cooperative wind and solar.--In the case of 
     renewable electricity generated by a wind or solar energy 
     facility which is wholly owned by a mutual or cooperative 
     electric company (as described in section 501(c)(12) or 
     1381(a)(2)(C)), the number of kilowatt hours of such 
     renewable electricity shall, for purposes of subsection 
     (a)(2), be equal to 150 percent of the kilowatt hours of such 
     renewable electricity actually purchased or produced and sold 
     during the taxable year.''.
       (2) Credit made part of general business credit.--
     Subsection (b) of section 38, as amended by this Act, is 
     amended by striking ``plus'' at the end of paragraph (35), by 
     striking the period at the end of paragraph (36) and 
     inserting ``, plus'', and by adding at the end the following 
     new paragraph:
       ``(37) the consumer renewable credit determined under 
     section 45S(a).''.
       (3) Specified credit.--Subparagraph (B) of section 38(c)(4) 
     is amended by redesignating clauses (vii) through (ix) as 
     clauses (viii) through (x), respectively, and by inserting 
     after clause (v) the following new clause:
       ``(vi) the credit determined under section 45S.''.
       (4) Clerical amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 is amended by 
     adding at the end the following new item:
``Sec. 45S. Consumer renewable credit.''.

       (b) Payments in Lieu of Credit.--
       (1) In general.--Subchapter B of chapter 65 is amended by 
     adding at the end the following new section:

     ``SEC. 6433. CONSUMER RENEWABLE CREDIT PAYMENTS.

       ``(a) In General.--If any eligible person sells renewable 
     electricity to a retail customer, the Secretary shall pay 
     (without interest) to any such person who elects to receive a 
     payment an amount equal to the product of--
       ``(1) the intermittent renewable portfolio factor of such 
     eligible person, and
       ``(2) the number of kilowatt hours of renewable 
     electricity--
       ``(A) purchased or produced by such person, and
       ``(B) sold by such person in the trade or business of such 
     person to a retail customer.
       ``(b) Timing of Payments.--
       ``(1) In general.--Except as provided in paragraph (2), 
     rules similar to the rules of section 6427(i)(1) shall apply 
     for purposes of this section.
       ``(2) Quarterly payments.--
       ``(A) In general.--If, at the close of any quarter of the 
     taxable year of any person (or, in the case of an eligible 
     person that does not have a taxable year, the close of any 
     quarter of the fiscal year), at least $750 is payable in the 
     aggregate under subsection (a), to such person with respect 
     to electricity purchased or produced during--
       ``(i) such quarter, or
       ``(ii) any prior quarter (for which no other claim has been 
     filed) during such year,
     a claim may be filed under this section with respect to such 
     electricity.
       ``(B) Time for filing claim.--No claim filed under this 
     paragraph shall be allowed unless filed on or before the last 
     day of the first quarter following the earliest quarter 
     included in the claim.
       ``(c) Definitions and Special Rules.--For purposes of this 
     section--
       ``(1) Eligible person.--The term `eligible person' means--
       ``(A) an electric utility, as defined in section 3(22) of 
     the Federal Power Act (16 U.S.C. 796(22)), or
       ``(B) a Federal power marketing agency, as defined in 
     section 3(19) of such Act (16 U.S.C. 796(19)).
       ``(2) Other definitions.--Any term used in this section 
     which is also used in section 45S shall have the meaning 
     given such term under section 45S.
       ``(3) Application of other rules.--For purposes of this 
     section, rules similar to the rules of paragraphs (1) and (3) 
     of section 45(e) shall apply.
       ``(d) Payment Disallowed Unless Amount Passed to Third-
     Party Generators Charged for Integration Costs.--
       ``(1) In general.--In the case of renewable electricity 
     eligible for the payment under subsection (a) that is 
     purchased and not produced by an eligible person, no payment 
     shall be made under this section unless any charge the 
     eligible person has assessed the seller to recover the 
     integration costs associated with such electricity has been 
     reduced (but not below zero) to the extent of the payment 
     received under subsection (a) associated with such 
     electricity.
       ``(2) Definitions.--For purposes of paragraph (1), charges 
     intended to recover integration costs do not include amounts 
     paid by the producer of the electricity for interconnection 
     facilities, distribution upgrades, network upgrades, or stand 
     alone network upgrades as those terms have been defined by 
     the Federal Energy Regulatory Commission in its Standard 
     Interconnection Procedures.
       ``(e) Payment Allowed for Special Generating and 
     Transmitting Entities.--
       ``(1) In general.--Notwithstanding subsection (a)(2), a 
     special generating and transmitting entity shall be eligible 
     for payment under subsection (a) based on the number of 
     kilowatt hours of renewable electricity transmitted, 
     regardless of whether such entity purchased or sold such 
     electricity to retail customers.
       ``(2) Definition.--For purposes of this subsection, the 
     term `special generating and transmitting entity' means--
       ``(A) an entity which is--
       ``(i) primarily engaged in marketing electricity,
       ``(ii) provides transmissions services for greater than 
     4,000 megawatts of renewable electricity generating 
     facilities, as determined by reference to the machine or 
     nameplate capacity thereof, and
       ``(iii) transmits the majority of such renewable 
     electricity to customers located outside of the region that 
     it serves, or
       ``(B) a generation and transmission cooperative which 
     engages primarily in providing wholesale electric services to 
     its members (generally consisting of distribution 
     cooperatives).''.
       (2) Clerical amendment.--The table of sections for subpart 
     B of chapter 65 of the Internal Revenue Code of 1986 is 
     amended by adding at the end the following new item:
``Sec. 6433. Consumer renewable credit payments.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to electricity produced or purchased and sold 
     after December 31, 2013, and before January 1, 2019.

     SEC. _02. DELAY IN APPLICATION OF WORLDWIDE INTEREST.

       (a) In General.--Paragraphs (5)(D) and (6) of section 
     864(f) are each amended by striking ``December 31, 2020'' and 
     inserting ``December 31, 2022''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.
                                 ______
                                 
  SA 3213. Ms. KLOBUCHAR submitted an amendment intended to be proposed 
by her to the bill H.R. 3474, to amend the Internal Revenue Code of 
1986 to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from

[[Page 8400]]

being taken into account for purposes of the employer mandate under the 
Patient Protection and Affordable Care Act; which was ordered to lie on 
the table; as follows:

       At the appropriate place, insert the following:

      TITLE--STOPPING TAX OFFENDERS AND PROSECUTING IDENTITY THEFT

     SEC. _01. USE OF DEPARTMENT OF JUSTICE RESOURCES WITH REGARD 
                   TO TAX RETURN IDENTITY THEFT.

       (a) In General.--The Attorney General should make use of 
     all existing resources of the Department of Justice, 
     including any appropriate task forces, to bring more 
     perpetrators of tax return identity theft to justice.
       (b) Considerations To Be Taken Into Account.--In carrying 
     out this section, the Attorney General should take into 
     account the following:
       (1) The need to concentrate efforts in those areas of the 
     country where the crime is most frequently reported.
       (2) The need to coordinate with State and local authorities 
     for the most efficient use of their laws and resources to 
     prosecute and prevent the crime.
       (3) The need to protect vulnerable groups, such as 
     veterans, seniors, and minors (especially foster children) 
     from becoming victims or otherwise used in the offense.

     SEC. _02. VICTIMS OF IDENTITY THEFT MAY INCLUDE 
                   ORGANIZATIONS.

       Chapter 47 of title 18, United States Code, is amended--
       (1) in section 1028--
       (A) in subsection (a)(7), by inserting ``(including an 
     organization)'' after ``another person''; and
       (B) in subsection (d)(7), in the matter preceding 
     subparagraph (A), by inserting ``or other person'' after 
     ``specific individual''; and
       (2) in section 1028A(a)(1), by inserting ``(including an 
     organization)'' after ``another person''.

     SEC. _03. IDENTITY THEFT FOR PURPOSES OF TAX FRAUD.

       Section 1028(b)(3) of title 18, United States Code, is 
     amended--
       (1) in subparagraph (B), by striking ``or'' at the end;
       (2) in subparagraph (C), by inserting ``or'' after the 
     semicolon; and
       (3) by adding at the end the following:
       ``(D) during and in relation to a felony under section 7206 
     or 7207 of the Internal Revenue Code of 1986;''.

     SEC. _04. REPORTING REQUIREMENT.

       (a) Generally.--Beginning with the first report made more 
     than 9 months after the date of the enactment of this Act 
     under section 1116 of title 31, United States Code, the 
     Attorney General shall include in such report the information 
     described in subsection (b) of this section as to progress in 
     implementing this Act and the amendments made by this Act.
       (b) Contents.--The information referred to in subsection 
     (a) is as follows:
       (1) Information readily available to the Department of 
     Justice about trends in the incidence of tax return identity 
     theft.
       (2) The effectiveness of statutory tools, including those 
     provided by this Act, in aiding the Department of Justice in 
     the prosecution of tax return identity theft.
       (3) Recommendations on additional statutory tools that 
     would aid in removing barriers to effective prosecution of 
     tax return identity theft.
       (4) The status on implementing the recommendations of the 
     Department's March 2010 Audit Report 10-21 entitled ``The 
     Department of Justice's Efforts to Combat Identity Theft''.
                                 ______
                                 
  SA 3214. Ms. KLOBUCHAR (for herself, Mr. Hatch, Mr. Franken, Mr. 
Toomey, Mrs. Shaheen, Mrs. Hagan, Mr. Donnelly, Mr. Coats, Mr. 
McConnell, Mr. Udall of Colorado, Mr. Casey, and Ms. Collins) submitted 
an amendment intended to be proposed by her to the bill H.R. 3474, to 
amend the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the end, add the following:

                TITLE--MORATORIUM ON MEDICAL DEVICE TAX

     SEC. ___. MORATORIUM ON APPLICATION OF MEDICAL DEVICE TAX AND 
                   REFUND OF AMOUNTS PAID.

       (a) Moratorium on Application of Tax.--
       (1) In general.--Section 4191 of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subsection:
       ``(c) Moratorium.--The tax imposed under subsection (a) 
     shall not apply to sales during the period beginning on 
     January 1, 2014, and ending on December 31, 2015.''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to sales after December 31, 2013.
       (b) Refund of Amounts Paid.--The Secretary of the Treasury 
     shall prescribe such regulations as may be necessary or 
     appropriate to provide a refund, with interest, to any 
     manufacturer, producer, or importer of taxable medical 
     devices in an amount equal to the taxes imposed by section 
     4191 of the Internal Revenue Code of 1986 that were paid by 
     such manufacturer, producer, or importer for the sale of any 
     such devices between the period after December 31, 2013, and 
     before the date of the enactment of this Act.
                                 ______
                                 
  SA 3215. Ms. KLOBUCHAR submitted an amendment intended to be proposed 
by her to the bill H.R. 3474, to amend the Internal Revenue Code of 
1986 to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the end, add the following:

                       TITLE _--INNOVATE AMERICA

     SEC. _01. FINDINGS.

       Congress finds the following:
       (1) Innovation has historically been a catalyzing force in 
     the American economy, driving the production of game-changing 
     technologies, the creation of millions of jobs and the 
     opening of countless new avenues for growth. In an 
     increasingly competitive global economy, our Nation's 
     continued leadership and prosperity will hinge on progress in 
     key innovative areas, most notably exporting, 
     entrepreneurship, research and development, and education in 
     science, technology, engineering, and mathematics (STEM), 
     including computer science.
       (2) Technology-based startups play a critical role in 
     driving innovation. Increasing the flow of capital to these 
     firms would bridge the gap that often exists between their 
     initial startup costs and their long-term capital needs, 
     giving the firms the resources necessary to research, 
     develop, and commercialize new products.
       (3) Simplifying, expanding, and stabilizing the tax credits 
     that businesses and institutions of higher education rely on 
     to offset the cost of research and would promote greater 
     clarity in the Internal Revenue Code of 1986 and deliver a 
     powerful incentive for private sector innovation.
       (4) Increasing the emphasis on STEM education in high 
     schools and institutions of higher education would ensure 
     that more students have the skills and training to not only 
     compete for jobs in a 21st century economy, but also to 
     create the startup companies and revolutionary technologies 
     that will sustain American prosperity for centuries to come.
       (5) The United States Bureau of Labor Statistics predicts 
     that in the year 2020, of the 9,200,000 ``STEM'' jobs there 
     will be in the United States, half of them will be in 
     computing. With more than 150,000 job openings expected 
     annually in computing, it is one of the fastest growing 
     occupations in the United States. Increasing the teaching and 
     learning of computer science in schools would strengthen the 
     American workforce by helping our students gain the skills 
     and training necessary to fulfill new computer programming 
     jobs.
       (6) An effective regulatory climate should protect 
     consumers and promote transparency without overburdening the 
     businesses that create jobs. Federal agencies with rulemaking 
     authority should be vigilant in assessing the impact of new 
     regulations on innovation and job creation, particularly in 
     anchor industries like manufacturing.
       (7) The economic impact of a new product or technology is 
     often dependent on its commercial success. To ensure American 
     products can be bought and sold in markets around the world, 
     the government should identify and remove over burdensome 
     regulations that create barriers for United States exporting 
     companies.

     SEC. _02. SIMPLIFICATION OF TAX CREDIT FOR CONTRIBUTIONS TO 
                   UNIVERSITIES FOR RESEARCH AND DEVELOPMENT 
                   PURPOSES.

       (a) In General.--Subparagraph (A) of section 41(e)(7) is 
     amended by striking ``not having a specific commercial 
     objective''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. _03. CREDIT FOR CHARITABLE CONTRIBUTIONS OF EQUIPMENT TO 
                   SECONDARY SCHOOLS AND TECHNICAL AND COMMUNITY 
                   COLLEGES.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 is amended by adding at the end the following new 
     section:

     ``SEC. 45S. CREDIT FOR CHARITABLE CONTRIBUTIONS OF EQUIPMENT 
                   TO SECONDARY SCHOOLS AND TECHNICAL AND 
                   COMMUNITY COLLEGES.

       ``(a) In General.--For purposes of section 38, the 
     charitable equipment contribution credit determined under 
     this section for any taxable year is an amount equal to 30 
     percent of the fair market value (determined at the time of 
     the contribution) of any qualified

[[Page 8401]]

     equipment which is contributed by the taxpayer to a secondary 
     school, technical college, or community college.
       ``(b) Qualified Equipment.--For purposes of this section, 
     the term `qualified equipment' means any tangible personal 
     property described in paragraph (1) of section 1221(a), but 
     only if--
       ``(1) the property is purchased, constructed, or assembled 
     by the taxpayer,
       ``(2) the property is equipment or apparatus substantially 
     all of the use of which by the donee is for research or 
     experimentation, research training, or education in science 
     or technology,
       ``(3) the property is suitable for use in the donee's 
     research or experimentation or educational programs,
       ``(4) the property is not transferred by the donee in 
     exchange for money, other property, or services, and
       ``(5) the taxpayer receives from the donee a written 
     statement representing that its use and disposition of the 
     property will be in accordance with the provisions of 
     paragraphs (2), (3), and (4).
       ``(c) Gain Not Taken Into Account.--The amount of any 
     contribution of qualified equipment otherwise taken into 
     account under subsection (a) shall be reduced, but not below 
     zero, by the sum of--
       ``(1) \1/2\ of the amount of any gain which would not have 
     been long-term capital gain (determined without regard to 
     section 1221(b)(3)) if the property contributed had been sold 
     by the taxpayer at its fair market value (determined at the 
     time of such contribution), and
       ``(2) the amount, if any, by which the amount of such 
     contribution (determined by taking into account paragraph (1) 
     but without regard to this paragraph) exceeds twice the 
     taxpayer's basis in the qualified equipment.
       ``(d) Definitions.--For purposes of this section--
       ``(1) Secondary school.--The term `secondary school' has 
     the meaning given such term by section 9101 of the Elementary 
     and Secondary Education Act of 1965.
       ``(2) Technical college.--The term `technical college' 
     means a postsecondary vocational institution (as defined in 
     section 102(c) of the Higher Education Act of 1965).
       ``(3) Community college.--The term `community college' 
     means a junior or community college (as defined in section 
     312 of the Higher Education Act of 1965).
       ``(e) Denial of Double Benefit.--No deduction shall be 
     allowed under section 170 for any contribution for which a 
     credit is allowed under this section.''.
       (b) Credit Treated as Part of General Business Credit.--
     Section 38(b), as amended by this Act, is amended--
       (1) by striking ``plus'' at the end of paragraph (36),
       (2) by striking the period at the end of paragraph (37) and 
     inserting ``, plus'', and
       (3) by adding at the end the following new paragraph:
       ``(38) the charitable equipment contribution credit 
     determined under section 45S(a).''.
       (c) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 is amended by 
     adding at the end the following new item:

``Sec. 45S. Credit for charitable contributions of equipment to 
              secondary schools and technical and community 
              colleges.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to contributions made after the date that is 30 
     days after the date of the enactment of this Act.

     SEC. _04. TAX CREDIT FOR COLLABORATIVE RESEARCH AND 
                   DEVELOPMENT.

       (a) In General.--Paragraph (3) of section 41(a) is amended 
     by striking ``to an energy research consortium for energy 
     research'' and inserting ``to a qualified collaborative 
     research partner for qualified research''.
       (b) Definition.--Paragraph (6) of section 41(f) is amended 
     to read as follows:
       ``(6) Qualified collaborative research partner.--
       ``(A) In general.--The term `qualified collaborative 
     research partner' means--
       ``(i) a collaborative research consortium,
       ``(ii) an institution of higher education (as defined in 
     section 3304(f)), or
       ``(iii) an organization which is a Federal laboratory (as 
     defined in section 4(6) of the Stevenson-Wydler Technology 
     Innovation Act of 1980 (15 U.S.C. 3703(6)), as in effect on 
     the date of the enactment of the Energy Tax Incentives Act of 
     2005).
       ``(B) Collaborative research consortium.--The term 
     `collaborative research consortium' means any organization--
       ``(i) which is--

       ``(I) described in section 501(c)(3) and is exempt from tax 
     under section 501(a) and is organized and operated primarily 
     to conduct scientific research, or
       ``(II) organized and operated primarily to conduct 
     scientific research in the public interest (within the 
     meaning of section 501(c)(3)),

       ``(ii) which is not a private foundation,
       ``(iii) to which at least 5 unrelated persons paid or 
     incurred during the calendar year in which the taxable year 
     of the organization begins amounts (including as 
     contributions) to such organization for qualified research, 
     and
       ``(iv) to which no single person paid or incurred 
     (including as contributions) during such calendar year an 
     amount equal to more than 50 percent of the total amounts 
     received by such organization during such calendar year for 
     qualified research.
       ``(C) Treatment of persons.--All persons treated as a 
     single employer under subsection (a) or (b) of section 52 
     shall be treated as related persons for purposes of 
     subparagraph (B)(iii) and as a single person for purposes of 
     subparagraph (B)(iv).
       ``(D) Foreign research.--For purposes of subsection (a)(3), 
     amounts paid or incurred for any research conducted outside 
     the United States, the Commonwealth of Puerto Rico, or any 
     possession of the United States shall not be taken into 
     account.
       ``(E) Denial of double benefit.--Any amount taken into 
     account under subsection (a)(3) shall not be taken into 
     account under paragraph (1) or (2) of subsection (a).''.
       (c) Conforming Amendments.--
       (1) Subparagraph (D) of section 41(b)(3) is amended to read 
     as follows:
       ``(D) Amounts paid to eligible small businesses.--
       ``(i) In general.--In the case of amounts paid by the 
     taxpayer to an eligible small business for qualified 
     research, subparagraph (A) shall be applied by substituting 
     `100 percent' for `65 percent'.
       ``(ii) Eligible small business.--For purposes of this 
     subparagraph, the term `eligible small business' means a 
     small business with respect to which the taxpayer does not 
     own (within the meaning of section 318) 50 percent or more 
     of--

       ``(I) in the case of a corporation, the outstanding stock 
     of the corporation (either by vote or value), and
       ``(II) in the case of a small business which is not a 
     corporation, the capital and profits interests of the small 
     business.

       ``(iii) Small business.--For purposes of this 
     subparagraph--

       ``(I) In general.--The term `small business' means, with 
     respect to any calendar year, any person if the annual 
     average number of employees employed by such person during 
     either of the 2 preceding calendar years was 500 or fewer. 
     For purposes of the preceding sentence, a preceding calendar 
     year may be taken into account only if the person was in 
     existence throughout the year.
       ``(II) Startups, controlled groups, and predecessors.--
     Rules similar to the rules of subparagraphs (B) and (D) of 
     section 220(c)(4) shall apply for purposes of this clause.''.

       (2) Subparagraphs (A)(ii) and (B)(ii) of section 41(f)(1) 
     are each amended by striking ``energy research consortiums'' 
     and inserting ``qualified collaborative research partners''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 3216. Ms. KLOBUCHAR submitted an amendment intended to be proposed 
by her to the bill H.R. 3474, to amend the Internal Revenue Code of 
1986 to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                       TITLE __--OTHER PROVISIONS

     SEC. ____. LIMITATION ON WITHDRAWAL LIABILITY OF CERTAIN 
                   SMALL EMPLOYERS PARTICIPATING IN A 
                   MULTIEMPLOYER PLAN.

       (a) In General.--Subsection (a) of section 4225 of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1405(a)) is amended by redesignating paragraph (2) as 
     paragraph (3) and by inserting after paragraph (1) the 
     following new paragraph:
       ``(2) In the case of an electing eligible small employer, 
     the portion of unfunded vested benefits (as determined after 
     the application of all sections of this part having a lower 
     number designation than this section) allocable to such 
     employer shall be the greater of--
       ``(A) the amount determined under paragraph (1) (determined 
     as if the table under paragraph (3) applied only to the 
     liquidation or distribution value of the employer); or
       ``(B) a portion (determined under paragraph (3)) of the 
     unfunded vested benefits (as so determined, but using the 
     method under section 4211 which results in the lowest amount) 
     attributable to employees of the employer.

     The amount determined under the preceding sentence shall not 
     exceed the amount determined by applying section 
     4219(c)(1)(B) without regard to any interest due on 
     withdrawal liability amounts which are deemed to be past due 
     at the time total payments are computed for the period of 20 
     years described in such section.''.
       (b) Electing Eligible Small Employer.--Subsection (a) of 
     section 4225 of the Employee Retirement Income Security Act 
     of 1974 (29 U.S.C. 1405(a)) is amended by adding at the end 
     the following new paragraph:

[[Page 8402]]

       ``(4) For purposes of paragraphs (2) and (3)--
       ``(A) The term `electing eligible small employer' means an 
     employer--
       ``(i) the stock of which is not publicly traded for more 
     than \1/2\ of the 3-calendar-year period ending with the 
     calendar year that includes the date of the enactment of this 
     paragraph;
       ``(ii) that has an average of fewer than 100 participants 
     in a multiemployer plan at each business location over such 
     3-year period;
       ``(iii) an average of 60 percent or fewer of the employees 
     of which at all business locations are participants in a 
     multiemployer plan over such 3-year period; and
       ``(iv) that elects by notification to the plan sponsor, 
     during the 5-consecutive-plan-year period beginning with the 
     first plan year beginning after the date of the enactment of 
     this paragraph, to have paragraph (2) apply to such employer.

     An employer shall be treated as an electing eligible small 
     employer only if such employer pays the amount determined 
     under paragraph (2) in a lump sum payment before the end of 
     such 5-year period.
       ``(B) The unfunded vested benefits of the electing eligible 
     small employer shall be determined as of the first day of the 
     first plan year beginning after the date of the enactment of 
     this paragraph, and shall be determined without regard to any 
     supplemental payments or payments made by reason of 
     rehabilitation status of the plan.''.
       (c) Conforming Amendments.--
       (1) Section 4225(a)(1)(A) of the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1405(a)(1)(A)) is amended by 
     striking ``paragraph (2)'' and inserting ``paragraph (3)''.
       (2) Paragraph (3) of section 4225(a) of such Act (29 U.S.C. 
     1405(a)(3)), as redesignated by subsection (a), is amended--
       (A) by striking ``paragraph (1)'' and inserting 
     ``paragraphs (1) and (2)'', and
       (B) by striking ``of the employer'' in the heading of the 
     first column of the table and inserting ``of the employer 
     (or, in the case of an electing eligible small employer, the 
     unfunded vested benefits of the employer)''.

     SEC. ____. EXCISE TAX ON MULTIEMPLOYER PLANS THAT FAIL TO 
                   COMPLY WITH SMALL EMPLOYER WITHDRAWAL LIABILITY 
                   LIMITATION.

       (a) In General.--Chapter 43 is amended by adding at the end 
     the following new section:

     ``SEC. 4980J. EXCISE TAX ON MULTIEMPLOYER PLANS THAT FAIL TO 
                   COMPLY WITH SMALL EMPLOYER WITHDRAWAL LIABILITY 
                   LIMITATION.

       ``(a) Imposition of Tax.--If--
       ``(1) a multiemployer plan to which title IV of the 
     Employee Retirement Income Security Act of 1974 applies 
     includes an electing eligible small employer (as defined in 
     section 4225(a)(4) of such Act), and
       ``(2) the plan is not amended, as of the last day of the 
     first plan year beginning after the later of--
       ``(A) the date of the enactment of paragraph (4) of section 
     4225(a) of such Act; or
       ``(B) receipt by the plan of notice from one or more 
     employers participating in the plan that such employer is 
     making the election under section 4225(a)(4)(A)(iv);

     to comply with the limitation under section 4225(a)(2) of 
     such Act,

     there is hereby imposed a tax in the amount determined under 
     subsection (b).
       ``(b) Amount Determined.--The amount determined under this 
     subsection is, with respect to each calendar year (or portion 
     thereof) in the period beginning on the date described in 
     subsection (a)(2) and ending on the effective date of an 
     amendment to the plan that complies with the limitation under 
     section 4225(a)(2) of the Employee Retirement Income Security 
     Act of 1974, the product of--
       ``(1) $10,000, and
       ``(2) the number of participants in the plan who are 
     employees of the electing eligible small employer for plan 
     years beginning in such calendar year.
       ``(c) Liability for, and Time of Payment of, Tax.--For 
     purposes of this section--
       ``(1) Liability.--The tax imposed by subsection (a) shall 
     be paid by the plan sponsor (within the meaning of section 
     432(i)((9)).
       ``(2) Time of payment.--The Secretary may provide for the 
     tax imposed by subsection (a) to be paid on an annual or lump 
     sum basis, or at such other time as the Secretary deems 
     appropriate.
       ``(d) Waiver of Tax.--In the case of a failure to amend a 
     plan to comply with the limitation under section 4225(a)(2) 
     of the Employee Retirement Income Security Act of 1974 which 
     the Secretary determines (in coordination with the Secretary 
     of Labor) is due to reasonable cause and not to willful 
     neglect, the Secretary may waive all or a portion of the tax 
     imposed by subsection (a) to the extent that the payment of 
     such tax would be excessive or otherwise inequitable in 
     relation to the amount of the withdrawal liability of the 
     electing eligible small employer involved.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     43 is amended by adding at the end the following new item:

``Sec. 4980J. Excise tax on multiemployer plans that fail to comply 
              with small employer withdrawal liability limitation.''.
                                 ______
                                 
  SA 3217. Mr. BOOKER (for himself and Mr. Scott) submitted an 
amendment intended to be proposed by him to the bill H.R. 3474, to 
amend the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

     At the end, add the following:

 TITLE __--LEVERAGING AND ENERGIZING AMERICA'S APPRENTICESHIP PROGRAMS

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``Leveraging and Energizing 
     America's Apprenticeship Programs Act'' or the ``LEAP Act''.

     SEC. _02. CREDIT FOR EMPLOYEES PARTICIPATING IN QUALIFIED 
                   APPRENTICESHIP PROGRAMS.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 is amended by adding at the end the following new 
     section:

     ``SEC. 45S. EMPLOYEES PARTICIPATING IN QUALIFIED 
                   APPRENTICESHIP PROGRAMS.

       ``(a) In General.--For purposes of section 38, the 
     apprenticeship credit determined under this section for the 
     taxable year is an amount equal to the sum of the applicable 
     credit amounts (as determined under subsection (b)) for each 
     of apprentice of the employer that exceeds the applicable 
     apprenticeship level (as determined under subsection (e)) 
     during such taxable year.
       ``(b) Applicable Credit Amount.--For purposes of subsection 
     (a), the applicable credit amount for each apprentice for 
     each taxable year is equal to--
       ``(1) in the case of an apprentice who has not attained 25 
     years of age at the close of the taxable year, $1,500, or
       ``(2) in the case of an apprentice who has attained 25 
     years of age at the close of the taxable year, $1,000.
       ``(c) Limitation on Number of Years Which Credit May Be 
     Taken Into Account.--The apprenticeship credit shall not be 
     allowed for more than 2 taxable years with respect to any 
     apprentice.
       ``(d) Apprentice.--For purposes of this section, the term 
     `apprentice' means any employee who is employed by the 
     employer--
       ``(1) in an officially recognized apprenticeable 
     occupation, as determined by the Office of Apprenticeship of 
     the Employment and Training Administration of the Department 
     of Labor, and
       ``(2) pursuant to an apprentice agreement registered with--
       ``(A) the Office of Apprenticeship of the Employment and 
     Training Administration of the Department of Labor, or
       ``(B) a recognized State apprenticeship agency, as 
     determined by the Office of Apprenticeship of the Employment 
     and Training Administration of the Department of Labor.
       ``(e) Applicable Apprenticeship Level.--
       ``(1) In general.--For purposes this section, the 
     applicable apprenticeship level shall be equal to--
       ``(A) in the case of any apprentice described in subsection 
     (b)(1), the amount equal to 80 percent of the average number 
     of such apprentices of the employer for the 3 taxable years 
     preceding the taxable year for which the credit is being 
     determined, rounded to the next lower whole number; and
       ``(B) in the case of any apprentices described in 
     subsection (b)(2), the amount equal to 80 percent of the 
     average number of such apprentices of the employer for the 3 
     taxable years preceding the taxable year for which the credit 
     is being determined, rounded to the next lower whole number.
       ``(2) First year of new apprenticeship programs.--In the 
     case of an employer which did not have any apprentices during 
     any taxable year in the 3 taxable years preceding the taxable 
     year for which the credit is being determined, the applicable 
     apprenticeship level shall be equal to zero.
       ``(f) Coordination With Other Credits.--The amount of 
     credit otherwise allowable under sections 45A, 51(a), and 
     1396(a) with respect to any employee shall be reduced by the 
     credit allowed by this section with respect to such employee.
       ``(g) Certain Rules To Apply.--Rules similar to the rules 
     of subsections (i)(1) and (k) of section 51 shall apply for 
     purposes of this section.''.
       (b) Credit Made Part of General Business Credit.--
     Subsection (b) of section 38, as amended by this Act, is 
     amended by striking ``plus'' at the end of paragraph (36), by 
     striking the period at the end of paragraph (37) and 
     inserting ``, plus'', and by adding at the end the following 
     new paragraph:
       ``(38) the apprenticeship credit determined under section 
     45S(a).''.
       (c) Denial of Double Benefit.--Subsection (a) of section 
     280C is amended by inserting ``45S(a),'' after ``45P(a),''.
       (d) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 is amended by 
     adding at the end the following new item:

``Sec. 45S. Employees participating in qualified apprenticeship 
              programs.''.

[[Page 8403]]

       (e) Effective Date.--The amendments made by this section 
     shall apply to individuals commencing apprenticeship programs 
     after the date of the enactment of this Act.

     SEC. 3. LIMITATION ON GOVERNMENT PRINTING COSTS.

       Not later than 90 days after the date of enactment of this 
     Act, the Director of the Office of Management and Budget 
     shall coordinate with the heads of Federal departments and 
     independent agencies to--
       (1) determine which Government publications could be 
     available on Government websites and no longer printed and to 
     devise a strategy to reduce overall Government printing costs 
     over the 10-year period beginning with fiscal year 2015, 
     except that the Director shall ensure that essential printed 
     documents prepared for social security recipients, medicare 
     beneficiaries, and other populations in areas with limited 
     Internet access or use continue to remain available;
       (2) establish government wide Federal guidelines on 
     employee printing; and
       (3) issue guidelines requiring every department, agency, 
     commission, or office to list at a prominent place near the 
     beginning of each publication distributed to the public and 
     issued or paid for by the Federal Government--
       (A) the name of the issuing agency, department, commission, 
     or office;
       (B) the total number of copies of the document printed;
       (C) the collective cost of producing and printing all of 
     the copies of the document; and
       (D) the name of the entity publishing the document.
                                 ______
                                 
  SA 3218. Ms. STABENOW submitted an amendment intended to be proposed 
to amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to 
amend the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       On page 6, strike line 15 and insert the following:

     inserting ``January 1, 2016, or which is discharged pursuant 
     to an arrangement entered into and evidenced in writing 
     before such date''.
                                 ______
                                 
  SA 3219. Ms. AYOTTE (for herself and Mrs. Shaheen) submitted an 
amendment intended to be proposed to amendment SA 3060 proposed by Mr. 
Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                      TITLE __----OTHER PROVISIONS

     SEC. _01. POINT OF ORDER.

       (a) In General.--It shall not be in order in the Senate to 
     consider any bill, joint resolution, motion, amendment, or 
     conference report that authorizes States to require online 
     remote sales tax collection.
       (b) Supermajority Waiver and Appeal.--
       (1) Waiver.--This section may be waived or suspended in the 
     Senate only by an affirmative vote of \2/3\ of the Members, 
     duly chosen and sworn.
       (2) Appeal.--An affirmative vote of \2/3\ of the Members of 
     the Senate, duly chosen and sworn, shall he required in the 
     Senate to sustain an appeal of the ruling of the Chair on a 
     point of order raised under this section.
                                 ______
                                 
  SA 3220. Mrs. SHAHEEN submitted an amendment intended to be proposed 
by her to the bill H.R. 3474, to amend the Internal Revenue Code of 
1986 to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                       TITLE __--OTHER PROVISIONS

     SEC. _01. SPECIAL CHANGE IN STATUS RULE FOR EMPLOYEES WHO 
                   BECOME ELIGIBLE FOR TRICARE.

       (a) In General.--Subsection (g) of section 125 is amended 
     by adding at the end the following new paragraph:
       ``(5) Change in status relating to tricare eligibility.--
     For purposes of this section, if a cafeteria plan permits an 
     employee to revoke an election during a period of coverage 
     and to make a new election based on a change in status event, 
     an event that causes the employee to become eligible for 
     coverage under the TRICARE program shall be treated as a 
     change in status event.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to events occurring after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 3221. Mrs. SHAHEEN submitted an amendment intended to be proposed 
by her to the bill H.R. 3474, to amend the Internal Revenue Code of 
1986 to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                       TITLE __--OTHER PROVISIONS

     SEC. __01. POINT OF ORDER AGAINST LEGISLATION THAT WOULD 
                   AUTHORIZE STATES TO REQUIRE REMOTE SALES TAX 
                   COLLECTION WITHOUT CERTAIN LIMITATIONS.

       (a) Point of Order.--It shall not be in order in the Senate 
     to consider any bill, joint resolution, motion, amendment, or 
     conference report that authorizes States to require remote 
     sales tax collection unless such legislation includes 
     language similar to the model limitation in subsection (b).
       (b) Model Limitation.--The model limitation under this 
     subsection is as follows:
       (1) In general.--The authority of any State to require 
     remote sales tax collection shall not apply with respect to 
     any remote seller that is not a qualifying remote seller.
       (2) Qualifying remote seller.--For purposes of this 
     subsection--
       (A) In general.--The term ``qualifying remote seller'' 
     means--
       (i) any remote seller that meets the ownership requirements 
     of subparagraph (B); or
       (ii) any remote seller the majority of domestic employees 
     of which are primarily employed at a location in a 
     participating State.
       (B) Ownership requirements.--A remote seller meets the 
     ownership requirements of this subparagraph if--
       (i) in the case of a remote seller that is a publicly 
     traded corporation, more than 50 percent of the covered 
     employees (as defined in section 162(m)(3)) of the Internal 
     Revenue Code of 1986) of such corporation reside in 
     participating States;
       (ii) in the case of a remote seller that is a corporation 
     (other than a publicly traded corporation), more than 50 
     percent of the stock (by vote or value) of such corporation 
     is held by individuals residing in participating States;
       (iii) in the case of a remote seller that is a partnership, 
     more than 50 percent of the profits interests or capital 
     interests in such partnership is held by individuals residing 
     in participating States; and
       (iv) in the case of any other remote seller, more than 50 
     percent of the beneficial interests in the entity is held by 
     individuals residing in participating States.
       (C) Attribution rules.--For purposes of subparagraph (B), 
     the rules of section 318(a) of the Internal Revenue Code of 
     1986 shall apply.
       (D) Aggregation rules.--For purposes of this paragraph, all 
     persons treated as a single employer under subsection (a) or 
     (b) of section 52 of the Internal Revenue Code of 1986 or 
     subsection (m) or (o) of section 414 of such Code shall be 
     treated as one person.
       (3) Participating state.--The term ``participating State'' 
     means--
       (A) a Member State under the Streamlined Sales and Use Tax 
     Agreement which has exercised authority under subsection (a); 
     or
       (B) a State that--
       (i) is not a Member State under the Streamlined Sales and 
     Use Tax Agreement;
       (ii) enacts legislation to exercise the authority to 
     require remote sales tax collection; and
       (iii) implements such other requirements as Congress shall 
     provide.
       (4) Streamlined sales and use tax agreement.--For purposes 
     of this subsection, the term ``Streamlined Sales and Use Tax 
     Agreement'' means the multi-State agreement with that title 
     adopted on November 12, 2002, as in effect on the date of the 
     enactment of this Act and as further amended from time to 
     time.
       (c) Waiver and Appeal.--
       (1) Waiver.--Subsection (a) may be waived or suspended in 
     the Senate only by an affirmative vote of three-fifths of the 
     Members, duly chosen and sworn.
       (2) Appeal.--An affirmative vote of three-fifths of the 
     Members of the Senate, duly chosen and sworn, shall be 
     required to sustain an appeal of the ruling of the Chair on a 
     point of order raised under subsection (a).
                                 ______
                                 
  SA 3222. Mrs. SHAHEEN submitted an amendment intended to be proposed 
by her to the bill H.R. 3474, to amend the Internal Revenue Code of 
1986 to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from

[[Page 8404]]

being taken into account for purposes of the employer mandate under the 
Patient Protection and Affordable Care Act; which was ordered to lie on 
the table; as follows:

       At the appropriate place, insert the following:

                       TITLE __--OTHER PROVISIONS

     SEC. _01. EMPLOYEE PAYROLL TAX HOLIDAY FOR NEWLY HIRED 
                   VETERANS.

       (a) In General.--Subsection (d) of section 3111 is amended 
     to read as follows:
       ``(d) Special Exemption for Eligible Veterans Hired During 
     Certain Calendar Quarters.--
       ``(1) In general.--Subsection (a) shall not apply to 50 
     percent of the wages paid by the employer with respect to 
     employment during the holiday period of any eligible veteran 
     for services performed--
       ``(A) in a trade or business of the employer, or
       ``(B) in the case of an employer exempt from tax under 
     section 501(a), in furtherance of the activities related to 
     the purpose or function constituting the basis of the 
     employer's exemption under such section.
       ``(2) Holiday period.--For purposes of this subsection, the 
     term `holiday period' means the period of 4 consecutive 
     calendar quarters beginning with the first day of the first 
     calendar quarter beginning after the date of the enactment of 
     the EXPIRE Act of 2014.
       ``(3) Eligible veteran.--For purposes of this subsection--
       ``(A) In general.--The term `eligible veteran' means a 
     veteran who--
       ``(i) begins work for the employer during the holiday 
     period,
       ``(ii) was discharged or released from the Armed Forces of 
     the United States under conditions other than dishonorable, 
     and
       ``(iii) is not an individual described in section 51(i)(1) 
     (applied by substituting `employer' for `taxpayer' each place 
     it appears).
       ``(B) Veteran.--The term `veteran' means any individual 
     who--
       ``(i) has served on active duty (other than active duty for 
     training) in the Armed Forces of the United States for a 
     period of more than 180 days, or has been discharged or 
     released from active duty in the Armed Forces of the United 
     States for a service-connected disability (within the meaning 
     of section 101 of title 38, United States Code),
       ``(ii) has not served on extended active duty (as such term 
     is used in section 51(d)(3)(B)) in the Armed Forces of the 
     United States on any day during the 60-day period ending on 
     the hiring date, and
       ``(iii) provides to the employer a copy of the individual's 
     DD Form 214, Certificate of Release or Discharge from Active 
     Duty, that includes the nature and type of discharge.
       ``(4) Election.--An employer may elect not to have this 
     subsection apply. Such election shall be made in such manner 
     as the Secretary may require.
       ``(5) Coordination with work opportunity credit.--For 
     coordination with the work opportunity credit, see section 
     51(3)(D).''.
       (b) Coordination With Work Opportunity Credit.--
       (1) In general.--Paragraph (3) of section 51(d) of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new subparagraph:
       ``(D) Denial of credit for veterans subject to 50 percent 
     payroll tax holiday.--If section 3111(d)(1) (as amended by 
     the EXPIRE Act of 2014) applies to any wages paid by an 
     employer, the term `qualified veteran' does not include any 
     individual who begins work for the employer during the 
     holiday period (as defined in section 3111(d)(2)) unless the 
     employer makes an election not to have section 3111(d) 
     apply.''.
       (2) Conforming amendment.--Subsection (c) of section 51 of 
     such Code is amended by striking paragraph (5).
                                 ______
                                 
  SA 3223. Ms. AYOTTE submitted an amendment intended to be proposed by 
her to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. BONUSES.

       (a) Adverse Findings and Employees Under Investigation.--
     Chapter 45 of title 5, United States Code, is amended by 
     adding at the end the following:

            ``Subchapter IV--Limitations on Bonus Authority

     ``Sec. 4531. Certain forms of misconduct

       ``(a) Definitions.--In this section--
       ``(1) the term `adverse finding' relating to an employee 
     means a determination that the conduct of the employee--
       ``(A) violated a policy of the agency for which the 
     employee may be removed or suspended; or
       ``(B) violated a law for which the employee may be 
     imprisoned of more than 1 year;
       ``(2) the term `agency' has the meaning given that term 
     under section 551; and
       ``(3) the term `bonus' means any bonus or cash award, 
     including--
       ``(A) an award under this chapter;
       ``(B) an award under section 5384; and
       ``(C) a retention bonus under section 5754.
       ``(b) Adverse Findings.--
       ``(1) In general.--The head of an agency shall not award a 
     bonus to an employee of the agency until 5 years after the 
     end of the fiscal year in which the Inspector General or 
     another senior ethics official of the agency or the 
     Comptroller General of the United States makes an adverse 
     finding relating to the employee.
       ``(2) Previously awarded bonuses.--If the Inspector General 
     or another senior ethics official of the agency or the 
     Comptroller General of the United States makes an adverse 
     finding relating to an employee, the head of the agency 
     employing the employee, after notice and an opportunity for a 
     hearing, shall issue an order directing the employee to repay 
     the amount of any bonus awarded to the employee during the 
     year during which the adverse finding is made.''.
       (b) Technical and Conforming Amendment.--The table of 
     sections for chapter 45 of title 5, United States Code, is 
     amended by adding at the end the following:

             ``subchapter iv--limitations on bonus authority

``4531. Certain forms of misconduct.''.
                                 ______
                                 
  SA 3224. Ms. AYOTTE submitted an amendment intended to be proposed to 
amendment SA 3060 proposed by Mr. Wyden to the bill H.R. 3474, to amend 
the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. BONUSES.

       (a) Adverse Findings and Employees Under Investigation.--
     Chapter 45 of title 5, United States Code, is amended by 
     adding at the end the following:

            ``Subchapter IV--Limitations on Bonus Authority

     ``Sec. 4531. Certain forms of misconduct

       ``(a) Definitions.--In this section--
       ``(1) the term `adverse finding' relating to an employee 
     means a determination that the conduct of the employee--
       ``(A) violated a policy of the agency for which the 
     employee may be removed or suspended; or
       ``(B) violated a law for which the employee may be 
     imprisoned of more than 1 year;
       ``(2) the term `agency' has the meaning given that term 
     under section 551; and
       ``(3) the term `bonus' means any bonus or cash award, 
     including--
       ``(A) an award under this chapter;
       ``(B) an award under section 5384; and
       ``(C) a retention bonus under section 5754.
       ``(b) Adverse Findings.--
       ``(1) In general.--The head of an agency shall not award a 
     bonus to an employee of the agency until 5 years after the 
     end of the fiscal year in which the Inspector General or 
     another senior ethics official of the agency or the 
     Comptroller General of the United States makes an adverse 
     finding relating to the employee.
       ``(2) Previously awarded bonuses.--If the Inspector General 
     or another senior ethics official of the agency or the 
     Comptroller General of the United States makes an adverse 
     finding relating to an employee, the head of the agency 
     employing the employee, after notice and an opportunity for a 
     hearing, shall issue an order directing the employee to repay 
     the amount of any bonus awarded to the employee during the 
     year during which the adverse finding is made.''.
       (b) Technical and Conforming Amendment.--The table of 
     sections for chapter 45 of title 5, United States Code, is 
     amended by adding at the end the following:

             ``subchapter iv--limitations on bonus authority

``4531. Certain forms of misconduct.''.

                          ____________________